http://www.loan.com/home-loans/ Home loans are lending vehicles designed to help people purchase and/or improve real estate. There are a variety home loan options available to consumers, depending on their personal needs and circumstances. Actual mortgage rates can depend on the vehicle selected and the personal credit standing of the borrower. Figuring out which home loans make the most sense will depend on whether a borrower is looking to purchase new or is considering mortgage refinancing. Home equity loans can assist with improvements and there are bad credit home loans that might help people with a troubled credit past buy a place of their own. When home loans are under consideration, it is smart to use a mortgage calculator to estimate the costs of borrowing. http://www.loan.com/home-loans/how-to-identify-predatory-lenders.html The only way to protect yourself from getting into a bad loan is to identify predatory lenders before you do business with them. While the government offers some protections to help you get out of bad loans, such as the Consumer Credit Protection Act, it is always cheaper for you to simply avoid getting into the loan in the first place. Predatory lenders are not always easy to identify, but there are a few factors to consider when you think you are getting a bad loan deal. Terms are Not Disclosed By law, lenders must disclose the terms of... Fri, 20 Nov 2009 15:05:00 -0800 http://www.loan.com/home-loans/4-hidden-costs-of-home-equity-loans.html The true costs of home equity loans can be difficult to determine, based on the promotional efforts of lenders. They may paint an attractive picture of a loan, but a borrower can be assessed hidden or unexpected expenses. The fees can add up quickly. 1. Teaser Rates You have probably received flyers or promotional material from lenders in the past that make many brash claims like "Borrow $50,000 for $159 per month". When you first look at the flyer, it seems like a phenomenal deal. However, look closely. Many companies promote a "teaser rates." The loans work very much like... Tue, 17 Nov 2009 15:05:00 -0800 http://www.loan.com/home-loans/5-factors-that-contribute-to-fluctuating-interest-rates-on-home-loans.html Interest rates on home loans depend on both national and personal factors. As a borrower, you should understand that there are many factors that determine interest rates in conjunction with your application. This is particularly true in turbulent economic times when interest rates are likely to fluctuate tremendously. #1 National Prime Interest Rate The national prime interest rate is set by the Federal Reserve and is part of the federal economic policy. Though the Fed is not part of the government itself, it works closely with the government to set rates that encourage lending and curb inflation. During a... Tue, 17 Nov 2009 10:24:00 -0800 http://www.loan.com/home-loans/the-consequences-of-defaulting-on-a-second-mortgage.html Defaulting on a second mortgage may result in a variety of circumstances since the loan is subordinate to the primary mortgage. A subordinate loan means that the lien your second lender has on your home takes a lower priority than the lien the first lender has on your home. When you take a second mortgage, you collateralize the equity you have built in your home from making payments to your first lender. Most second mortgages take the form of home equity lines of credit; the main difference is a second mortgage is always secured against the home itself. A... Tue, 17 Nov 2009 10:23:00 -0800 http://www.loan.com/home-loans/what-happens-when-you-default-on-a-mortgage-loan.html When you default on a mortgage loan, you will find there are financial consequences that last for years. Defaulting on any loan will cause significant financial consequences, but mortgage loan defaults tend to have a larger impact because of their size and the importance of the asset. The default process will occur slowly, over the course of many months and sometimes years. The slow moving process gives you plenty of time to correct the problem. Notice of Late Payments You will receive a notice any time you fail to pay your mortgage payment on time. Your monthly payments will... Tue, 17 Nov 2009 10:22:00 -0800 http://www.loan.com/home-loans/debt-to-income-ratio-explained.html Your debt-to-income ratio is one of the most important numbers in your financial life. Although you may not know what yours is, it affects you whenever you try to buy something. Lenders obey strict debt-to-income ratio guidelines when determining whether you are creditworthy or not. It could be the difference between getting the house of your dreams or not. What Is Debt-to-Income Ratio? Calculating your debt ratio is actually easier than you may think. Lenders can come up with the number pretty fast once you have filled out a home loan application and given them the authorization to pull... Tue, 10 Nov 2009 15:06:00 -0800 http://www.loan.com/home-loans/how-to-purchase-bank-owned-foreclosures.html Bank-owned foreclosures are great source to buy undervalued property because most banks are not in the real estate business and want to get rid of them quickly. While some investors have a handle on the process of buying bank-owned foreclosures, others are confused by it. The procedure is a little different than a typical sale. Here are a few things to consider if you are considering buying a foreclosure: Safe Investment Investing in bank-owned property is one of the safest investments out there for a new investor. When a bank owns the property, they have completed reports and other... Fri, 06 Nov 2009 15:08:00 -0800 http://www.loan.com/home-loans/requirements-to-purchase-a-short-sale.html In a short sale purchase you can get a bargain on an under-valued home. You can also end up mired in red tape, pay too much or own a home that has lost substantial value relative to its neighborhood. Before attempting your short sale purchase, be sure you have these four areas covered A Legitimate Short Sale Not all homes offered as a short sale truly are. A short sale occurs when a homeowner can no longer meet his mortgage payments and approaches the lender prior to foreclosure with a short sale request. The lender is under no obligation... Fri, 06 Nov 2009 15:06:00 -0800 http://www.loan.com/home-loans/the-effects-of-a-short-sale-on-your-credit-rating.html Although a short sale of your home will lower your credit rating, it can help you avoid a more negative impact by keeping a foreclosure off of it. It is important to understand how a short sale works, how your credit rating works and what effect a short sale will have. How a Short Sale Works If a homeowner falls behind on mortgage payments, the lender can declare the borrower in default and force a foreclosure, which means legally taking the home from the homeowner and selling it at auction. In a short sale, a borrower approaches a lender with an alternative to... Fri, 06 Nov 2009 15:05:00 -0800 http://www.loan.com/home-loans/credit-union-mortgage-alternative-to-bank-mortgages.html Obtaining a mortgage is one of the most important things that you will ever have to do because it is typically the largest investment you will make. A credit union can provide a mortgage for your purchase. Here are a few things to consider when shopping for a mortgage. Dealing with Credit Unions The first thing you will notice about a credit union is the difference in the way you are treated. Credit unions operate differently than banks because they are non-profit organizations. They are usually a very big part of the community and deal locally. The service that... Fri, 06 Nov 2009 15:03:00 -0800 http://www.loan.com/home-loans/required-information-for-fha-loans-preparing-your-application.html The required FHA loan information covers the primary categories of income, credit, savings and loan ratios. You will also be required to provide certain documentation across these categories. You may locate a simple preliminary application through your lender. Once this has been reviewed, you can then proceed to collect the documentation and full application necessary to secure your FHA home loan.Income RangeBecause the FHA is charged with the responsibility to provide affordable financing options, the income requirements are not as strict as with some traditional lenders. The portion of your total income spent on housing, including mortgage, upkeep, taxes... Thu, 05 Nov 2009 15:01:00 -0800 http://www.loan.com/home-loans/secured-your-lot-loan-the-next-4-steps.html People who want to build homes upon vacant land will typically need a lot loan. There are 4 steps to complete in residential land development after securing your lot loan. These steps start after obtaining the money and take you through development to a finished product. Your lot loan will allow you to purchase the land and begin the task of developing it. To develop the property you'll need to interact with a few professionals that can help you take the raw land and turn it into a newly constructed home. Most of the professionals listed below will give... Mon, 02 Nov 2009 15:08:00 -0800 http://www.loan.com/home-loans/do-fha-loan-foreclosures-differ-from-conventional-loan-foreclosures.html Because the Federal Housing Authority has funds at stake if you default on your mortgage, the organization will help you avoid FHA loan foreclosure. This assistance makes the FHA foreclosure process much less burdensome on most borrowers. However, if you do eventually default on your FHA loan, the consequences of the default can be worse than with a private loan. Foreclosure Prevention Assistance FHA lenders may consider restructuring your loan to allow for lower monthly payments you can afford. Typically, FHA lenders are more willing to refinance than other private lenders. To capitalize on this option, you will usually... Mon, 02 Nov 2009 15:06:00 -0800 http://www.loan.com/home-loans/finding-stated-income-loan-lenders.html Stated income loan lenders can be a great asset to those that want a loan without the hassles of income verification. Self-employed people are the group that benefits most from stated income loans. Small business owners may have trouble proving that they make as much money as they claim. This inability may prevent them from getting a loan from a traditional bank or lender. A stated income loan allows them to simply state that they make a certain amount of money and the lender takes them at their word. This allows them to get the mortgage they want without... Mon, 02 Nov 2009 15:03:00 -0800 http://www.loan.com/home-loans/interest-rates-on-home-loans-in-the-current-economic-climate.html Interest rates on home loans rely as much on the global credit market as they do on your personal credit history. Many borrowers make the mistake of thinking they are immune to the greater market cycles when they apply for mortgage loans. High risk borrowers with low credit scores are more affected than low risk borrowers, but all loans will be subject to market factors. These factors drive the interest rate up and down, leading to a large fluctuation in loan limits and rates. National Prime Interest Rate The national prime interest rate goes down in a recession. This... Sun, 01 Nov 2009 15:09:00 -0800 http://www.loan.com/home-loans/2nd-mortgage-loans.html Many people take out 2nd mortgage loans to get much-needed cash, quickly. A 2nd mortgage loan allows homeowners to borrow money by tapping into the equity in their home. The borrower uses the equity in their home as collateral. If you fail to repay the money you’ve borrowed, the lender will acquire your property. Therefore, prior to leveraging your home for cash, remember that it is a potentially risky decision that should be carefully considered. Home Equity Loan There are many popular types of 2nd mortgage loans. One of the most popular is called a Home Equity Loan (HEL).... Sun, 01 Nov 2009 15:08:00 -0800 http://www.loan.com/home-loans/how-the-recession-affects-the-approval-of-home-loans-for-people-with-bad-credit.html Home loans for people with bad credit are particularly hard to find during a recession. There are a number of factors that make all loan loans harder to locate when the economy is struggling. However, those with bad credit will suffer the most in a slow economy. While the national interest rate is lower and the government typically introduces programs to stimulate the housing market, these federal efforts do not overcome the challenges high risk borrowers face in a recession. Less Loans on the Market The first fact to face for a high risk borrower in a recession is... Sun, 01 Nov 2009 15:07:00 -0800 http://www.loan.com/home-loans/5-tips-when-completing-a-manufactured-home-loan-application.html A manufactured home loan application will be considered across all factors including your credit history, the home you are acquiring and other minor details in your application. While you can control very little about how the lender or manufactured home's seller handles the process, you can control every detail of your own application. Taking the opportunity to prepare the application diligently will give you a better chance of securing financing and at a lower rate. #1 Prepare Your Credit When you know you will be seeking a large loan in the next year or two, it is time to... Sun, 01 Nov 2009 15:06:00 -0800 http://www.loan.com/home-loans/disadvantages-of-manufactured-home-loans.html Manufactured home loans generally apply to purchases of mobile or modular homes. They can assist you in purchasing the property in the same way an auto loan helps you buy a car. Since the loan limits are not as high as a mortgage, manufactured home loans are typically easier to secure for those with a low asset base or less than perfect credit. However, before jumping at the opportunity, it is important to consider the many disadvantages of these loans as well. Higher Interest Rates than Mortgages Manufactured home loans will typically be extended at a higher interest rate... Sun, 01 Nov 2009 15:05:00 -0800 http://www.loan.com/home-loans/advantages-of-manufactured-home-loans.html Manufactured home loans are not only extended for the purchase of mobile homes, but they are most often used in this capacity. Other modular homes may meet the qualifications for a manufactured home loan. These loans are similar to mortgages for persons who are seeking to purchase a manufactured home instead of a traditional, permanent residence. They very from mortgages because the property itself is not valued when the loan is considered. Only the value of the modular or mobile home will be considered. Finance Ownership of a Home The main reason to seek a manufactured home loan is... Sun, 01 Nov 2009 15:04:00 -0800