There are times when “everyone” seems to be talking about re-mortgaging. “Everyone” thinks it’s the thing to do and can’t imagine why you haven’t done anything about it. It’s a bit like the kids that tell you that “everyone stays up until 11 o-clock at night”. Which you take with the pinch of salt that it deserves, of course.

The “everybodies” will tell tales of money saved in the past, taking out equity in their home to fund a whole range of purchases. Holidays, private education for the kids, a second car - you name it, they’ve done it. As soon as one deal is sorted, they’re on the lookout for the next one. You begin to wonder where you may have gone wrong. The thing to remember is that not everyone is in your shoes. (more…)

by: Randy Kreisel

Mortgage modification programs can be extremely helpful for the right homeowner.  Unfortunately, many of the mortgage firms that helped create this mortgage problem are not applying their creative tactics in the mortgage modification arena. The ultimate repeat customer.  Remember, a mortgage broker does not make a penny unless their is a home financed or refinanced.

Paul Kiel’s article on Mortgage Modication Firms talks about the rise in for profit companies that offer mortgage modification assistance when typically this service was offered as a service by non-profit organizations.  He references an recent article from the Washington Post article that documents this shift.

According to the Post, one reason for the growth in for-profit organizations getting onto the mortgage modification bandwagon is due to the high demand for a solution due to the foreclosure tsunami and the inability for non-profit’s to handle all the requests.  You would assume that a non-profit firm would have your best interest in mind when administering advise.  A for profit mortgage modification service brings in a profit motive.

The Post warns that mortgage modification firms can charge $500 to $2,500 for thier services when you can normally get the same service for free.  The benefit of using a service should be better service and well thought out solutions.  To avoid being ripped off, make sure you check into the service firm and clearly outline the services and fee schedule.

First, contact your mortgage service company and ask first who holds the mortgage, the answer may surprise you.  Most people think that since they applied for their mortgage through their bank - the banks holds it.

Before you speak to anyone regarding a mortgage modifcation, you should check to see if you qualify.  Bill has listed 8 questions you should answer to help determine if a loan modification is right for you.  The qualification questions will be a little different dependent on who holds your mortgage.  Mortgages held by Fannie Mae or Freddie Mac have their own requirements and government incentives to help.  Mortgages held by FHA, VA and others may have different requirements.

When we start earning, the first dream which most of the people have is to purchase a home. It is a dream which takes time to become visual but with the mortgage solutions many people are fulfilling their dreams in a short span of time.

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Being labeled as a high risk borrower can be a bad situation to be in, refinancing your mortgage could however help bring relief to this situation. So it seems a little odd to have to take out a new loan to pay off your other loans.

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Reuters - Cynthia Goldrick’s daughter is in and out of the hospital for brain surgery, her mother has Stage 4 lung cancer and her father has moved into a home for the elderly.

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To refinance a home mortgage is a very serious decision that should not be done without proper research before hand. Your number one over all goal should always be and remain to pay off your home. Mortgage refinancing can either help this or hurt this depending on which way you take it. I think, that the only reason to refinance a home is to get into a better loan with a better interest rate, or shorter terms. For example, if you pay 8% interest on your home mortgage, have 15 years of payments left, then refinancing into a 6% 15 year mortgage, will most likely be beneficial for you. Or to shorten the length of the loan, which also builds equity in your home faster. Both of these examples would help get you to your ultimate goal of paying off your home.

There are all different situations people have with their mortgage, but the rule of thumb is that you should consider refinancing when the current interest rates on a mortgage are around 2% (hopefully more) less than your current interest rate. This will decrease your payment on your house every month while being able to pay it off in the same time as you would have. There are fees associated with a refinance, that may be advertised as free or low cost, but beware of those. You should expect to pay a fee and preferably pay it upfront, even if they offer to add it to the loan total. Then you would just pay interest for the length of the loan on their closing fees, and that is throwing money away. Typically, most people report “breaking even” from a mortgage refinance in about 36 months from the day they signed the papers. Check online for mortgage calculators and you can get a rough idea of your possible savings. (more…)