Category Archives: Mortgage

Benefits of Online Teaching for Your Child

Online Teaching

Education should task the creativeness of kids, and not ensure it is flat. The reason why I mentioned this ‘obvious fact’ is that most schools have put creativeness on the back burner. Research and research yell out noisy the ill effects of consistent assessments in middle-schools- NCLB et al.

K-12 students experience a lot of condition in finishing their preparation. Youngsters are receptive; whatever gets inside their thoughts, stay there for long. Hence, it is necessary to shape their studying abilities (from the beginning) in a way that can make them innovative, and effective.

Children in secondary school feel condensed, as they have to show their academic abilities along with their SAT ratings to get entrance in universities. Accessibility of many analyzes preparation guides makes it difficult for a student to decide which the right one is.

Would a training institution for the SAT make a completely new curriculum for your child? Would an individual tutor always come to your house when you want? Are you ready to drive your kids to the training center through high-traffic, spending time, that otherwise could have been spent in fixing an SAT practice test?

If you know the answer to these questions, then it is about time you realize that online tutoring is a more practical, timesaving, affordable and most significantly, effective tutoring model for English homework. Here we would be discussing the advantages of web-based tutoring services for your kids.

Studies have shown that kids understand more in the existence of their oldsters. This is because in such cases, kids cannot spend your period in other activities. When you send your kids to an individual tutor, you can never keep track of the period. Moreover, the tutor would not offer you a documenting of the period. As a result, you would be not able to keep track of your kid’s improvement, Isn’t it?

An online tutor would not educate the actual same idea in the actual same way to different students. In reality, one of the greatest advantages of online tutoring depends on the point that it DOES NOT follow the ‘one-size-fits-all’ idea, as in the situation of most K-12 schools. With an internet-based tutor, your kids can understand while seated at a house.

Cost is a factor; It should never come in way of your child’ education and studying. If you happen to be a mother or father with a lot of money, you need not to have any issue spending 100’s of dollars paying an individual tutor every hour. You can find cheap tutors online for your kids but save your kids from online games.

Used During the Mortgage Process

APR – This stands for Annual Percentage Rate. It enables you to compare the full cost of the mortgage. Rather than just being an interest rate, it includes up front and ongoing costs of taking out a mortgage. The formula for calculating APR is set by Government Regulations and therefore enables direct comparison of the cost of mortgages.

Capital and Interest Mortgage – This is when part of your monthly payment contributes to paying off the outstanding mortgage in addition to paying the interest on the mortgage. The payments are structured so that at the end of the term, your mortgage will have been completely paid off. For this reason this type of mortgage is also called a Repayment Mortgage.

Capped Rate – This is a mortgage where the lender agrees that the interest charged will never exceed a specific percentage. This deal lasts for a set period of years. After the set period, the rate usually reverts to the lenders standard variable rate. During the capped period, the interest charges can move up and down with the lenders interest rate – but cannot exceed the capped rate.

Cashback – An amount, either fixed or a percentage of a mortgage, which you can opt to receive when you complete your mortgage. The lender may well claw back this money through a higher interest rate.

CAT marks/standards – CAT stands for Fair Charges, Easy Access and decent Terms. They were created by the Government in an attempt to provide consumers with simple, clear financial products with straightforward, easy to understand terms. A CAT mortgage will have no arrangement fees, no redemption fees and will have interest calculated daily. It will also have a minimum loan of just £5000, offer you repayment flexibility and the mortgage should be portable should you move home. Finally, you will not have to buy the lender’s insurance products and there will be no penalties should you find yourself in arrears but can subsequently catch up.

Completion – This is end of the house buying process, when the funds are transferred and the keys are handed over. Happy moving!

Contract – A contract is a binding agreement between the buyer and seller. In the context of house buying, after the contract is signed by both the buyer and the seller it is then ‘exchanged’ between the respective solicitors for a set completion date. At that point, the contract is legally binding on both parties.

Conveyancing – This is the legal process in which property is bought and sold. You can do it yourself or hire a solicitor or specialised conveyancer to perform the tasks for you. The buying of a freehold is much less complicated than the buying of a leasehold.

Discounted Rate – This is where the lender makes a guaranteed reduction off the standard variable rate for an agreed period of time. After the discounted period ends, the mortgage usually moves to the lenders’ standard variable rate. Watch out for redemption penalties that overhang the initial discount period.

Early Redemption Charges – Redemption is when the borrower pays off the capital and the interest on the mortgage and thus owns the property outright. Early redemption fees are the charges incurred for paying off the mortgage early, either to buy the house outright, move or re-mortgage. Always ask about early redemption charges before you agree a mortgage.

Endowment – Endowments are life assurance policies with an investment element designed to pay off the outstanding capital on an interest-only mortgage. There are a few types of endowments, such as ‘with profits’, ‘unitised with profits’ and ‘unit-linked’. In the 1980s, these were sold by salesman who seemly suggested that these policies were “guaranteed” to pay off the mortgage at the end of the term. However, the investment returns on these policies have fallen to below what was previously considered to be the norm. Consequently, many policies are not worth what was originally forecast and may not fully repay the money borrowed at the end of the mortgages’ term.

Equity – In housing terminology, equity is the difference between the value of the property and the money owed on the property. So if the property is valued at £200,000 and you owe £150,000 on the mortgage, you have equity of £50,000. If you sold at that moment, you would receive £50,000. Should the value of the home be less than the mortgage outstanding then you have negative equity.

Freehold – Owning the freehold means that you own the total rights to the property and the land on which it is built.

HLC – This is the Higher Lending Charge (it was previously known as a Mortgage Indemnity Guarantee). It is levied by around three quarters of all lenders on clients who cannot afford to put down a deposit of 10% of the price of the property. In practice it is a type of insurance aimed at protecting the lender should you default on your mortgage when the value of your home is less than the capital you borrowed. The insurance only provides cover for the lender, not you, and typically costs £1,500.

Homebuyers Report – A property survey aimed at providing more information than a mortgage valuation but less information than a full structural survey. It will help the borrower to decide whether to purchase and help the lender to decide how much to lend.

Interest Only Mortgage – This is a mortgage where your monthly repayments only pay the interest on the mortgage. Therefore, at the end of the mortgage you still have to repay the full sum you borrowed. You are advised to have a separate investment vehicle into which you make payments aimed at building up a fund capable of paying off the mortgage capital at the end of the term. Typical investments include ISA’s, a pension or an endowment policy.

IFAs – Stands for Independent Financial Advisor. These advisors are regulated by the Financial Services Authority. To be classified as “independent” they have to be able to offer you the full range of products from all financial product providers. They are not entitled to describe themselves as “independent” if they can only offer products from a restricted panel of financial companies. A Financial Advisor can be one man band or work for very large companies. Before they make any recommendation, an IFA must carry out a detailed fact find so they fully understand your financial circumstances. They can then make their recommendations to suit your personal circumstances.

ISA – An ISA is an Individual Savings Account, which is a tax-free method of owning shares, building up a cash savings account or a life assurance policy. You can use an ISA to build up a capital sum to repay an interest only mortgage.

Leasehold – If your property is leasehold, ownership of the property reverts to the Freeholder at a set date. Many houses were originally sold on 999 year leases which means that 999 years after the initial date of the Leasehold, ownership of the property reverts to the Freeholder. Building in multiple occupation such as apartments, are always sold on a leasehold and usually have a much shorter leasehold period – 100 and 125 years is quite common. Often, with a block of apartments, the apartment owners individually own the leaseholds whilst a management company, in which they hold shares, owns the freehold. These days, however, leaseholders who live in the property have the legal right to buy their freehold under terms laid down by UK law.

Life Insurance – This can also be called Term Insurance or, when specifically linked to proprty purchase, as Mortgage Protection Insurance. It is designed to pay a tax free lump sum in the event of your death to enable your mortgage to be repaid in full. There are a number of variants such as Level Term Life Insurance and Decreasing Term Life Insurance. At the outset you take out insurance for the full sum you have borrowed from your mortgage lender and for the same number of years as you have agreed on your mortgage. These insurance policies do not have any investment or surrender value. The premiums are based on a number of factors – the main ones being the amount of cover you need, your age, health and how many years you want to be insured for.

Lock-In Period – This is the minimum period you have agreed to stay with the lender. Depending on the deal, it could be as low as six months up to the whole of the term. Should you wish to repay the mortgage or remortgage during the lock-in period, you will invariably have to pay redemption penalties. Always make sure you know how long you are locked in for with your mortgage.

LTV – Literally means Loan to Value. This is a measurement of the mortgage amount against the value of the property or the price that you are actually paying. A £157,500 mortgage on a property for which you paid £175,000 would be a LTV of 90%. Lenders tend to charge a Mortgage Indemnity Premium on mortgages with a loan to value of anything about 75%. Some don’t so ask about this.

MIG – This has now changed its name to HLC. See above.

Mortgage – A mortgage is a long-term loan taken out in order to buy a property with repayment secured on that property. So if you don’t keep to the repayment terms, the lender can repossess the property, sell it and retain the money they are owed. Any balance is then paid to you. If the property is sold for less than you owe your lender, you still remain liable to repay the shortfall.

Mortgage Advisor – On October 31st 2004 the selling of mortgages in the UK came under the remit of the City watchdog, The Financial Services Authority (FSA). As from that date any person providing mortgage advice had to be registered with the FSA and abide by its rules of conduct, methods of operating and training programmes etc. The objective has been to improve life for the consumer by offering better protection, clear information and access to redress for poor advice.

Negative Equity – Negative equity is when the value of your home is less than the amount that you owe on your mortgage plus any other loans secured against it. It can happen very easily if you take out a 100% mortgage or if property prices fall. (Also see Higher Lending Charge)

Portable – This is a measure of how easy it is to move a mortgage from one property to another should a property move be required. This is vital if you are moving during your lock-in-period and wish to avoid redemption penalties.

Repayment Mortgage – This is the same as a Capital and Interest mortgage – see above.

Searches – During the conveyancing process, the buyer has to be sure that the seller has title to the property and identify any matters may affect the prospective owners ownership of the property. For example, whether the property is affected by any proposed road building, whether there are preservation orders affecting the property, is it a listed building and has it been built in accordance with planning conditions and building regulations. Searches will also show whether there are mines under or close by the property. This information is obtained by the person undertaking the conveyancing from HM Land Registry and the relevant Local Authority. These investigations are collectively known as “Searches”.

Self-Certification – Should you have difficulty in providing documentation that “proves” your income to a prospective mortgage lender, you may need a self-certification mortgage. In essence you personally certify what your full income is. If you receive high bonuses, or work seasonally or on commission, or are self-employed this may be your best option. You declare your income plus some evidence that your declaration is reasonable. Ideally lenders want to see as much guaranteed income as possible. To compensate the lender for the increased risk they are taking on a self-certified mortgage, they will charge you a higher rate interest, typically 1% over their standard variable rate.

Stamp Duty Land Tax (commonly known simply as Stamp Duty) – You pay Stamp Duty Land Tax on property like houses, flats, other buildings and land. If the purchase price is £120,000 or less, you don’t pay any Stamp Duty Land Tax. If the price is more than £120,000, you pay between one and four per cent of the whole purchase price, on a sliding scale.

Upto £120,000 – No duty payable

£120,001 to £250,000 – 1% duty payable*

£250,001 to £500,000 – 3% duty payable

£500,001 and over – 4% duty payable

*If you’re buying a property an area designated by the government as ‘disadvantaged’, you don’t pay any Stamp Duty Land Tax if the purchase price is £150,000 or less.

Did you know? Stamp Duty was originally introduced by William of Orange when he was King of England.

Structural Survey – The most thorough report you can get on the condition of the property you are considering to buy. The surveyor will look in detail at the inside and outside of the property and will tell you if the property is structurally sound. All major and minor defects in the building will also be listed and should tell you what maintenance work may be needed either now or in the future. You should make sure the scope of the survey is agreed in writing before you commission it. Should the survey identify problems, use them to negotiate a reduction in the price before you exchange contracts.

Variable Rate – This is when the interest rate you pay on your mortgage can go up or down depending on changes to the lender’s standard variable rate. If you have a variable rate mortgage your monthly mortgage payments will change whenever the lender changes the interest rate.

Valuation – This is where a valuer appointed by your proposed lender, visits the property in order to estimate its current value. This value is then used by the lender as a basis for its security and to calculate its Loan to Value Ratio. The borrower never sees the valuation. With some mortgage deals the lender absorbs the cost of the valuation but in many cases the borrower has to pay upfront.

Exclusive Mortgage Lead Info Guide

Before understanding all about exclusive mortgage leads we will first try to define mortgage leads and then we will proceed further. This article will provide you with all the basics that you need to know about exclusive mortgage leads with its advantages and will help you identify the differences between exclusive mortgage leads and Non-exclusive mortgage leads.

Mortgage is generally defined as a method of using property as security for the payment of a debt. Many mortgage lead generators are available in the market either online or offline to help mortgage consumers to pay their debt. So, the mortgage consumer will browse through the net for internet mortgage lead generators using search engines. By filling up a normal mortgage form, the mortgage consumer’s details will be passed on to the mortgage lenders who are willing to lend loans. The mortgage lenders will then sort those leads and get in touch with the mortgage consumers for loans. Among the various mortgage lead generators available nowadays finding the right place really would be tiring. But it is advisable to go through many companies offering mortgage leads and then settle on one reputed mortgage lead generator and mortgage lender.

The true definition of exclusive mortgage leads is defined as the leads that are only sold once to a mortgage lender. When mortgage consumers buy mortgage leads on exclusive basis, the same leads will not be sold to any other mortgage lead generators or mortgage lenders. A great writer once said “East or West, home is the best”. It is human nature that all of us would like to own a beautiful home. For some it’s easy but to most others it may seem to be the ripe grapes. Hence the prime motive of these mortgage lead companies is that, they will help those disabled to fulfill their dream.

In common, when a prospective homeowner approaches a mortgage lender for a mortgage loan, she will be asked to fill up a ‘Form of request’ for the loan, Known as the ‘Mortgage lead’. After carefully assessing the application and if it qualifies, the mortgage lender approves the loan. Since this is time consuming, people seek the help of mortgage lead generators to develop the lead and submit it to the mortgage lender. Hence in this way, the process of mortgage lead generator to send the mortgage lead form signed by the mortgage consumer to only one appropriate mortgage lender for mortgage loan is called as Exclusive mortgage leads.

Let us now look at some differences between exclusive mortgage leads and non-exclusive mortgage leads. Based on the advantages and disadvantages of exclusive mortgage leads, the following points are some benefits and main differences from that of non-exclusive mortgage leads.

  • The benefit of exclusive mortgage leads is that the mortgage consumer will face only less competition making the close rates higher than other leads. But in non-exclusive mortgage leads the competition is higher.
  • The data is shared only with one mortgage lender and hence the mortgage consumer has no choice to select some other mortgage lender if it’s an exclusive mortgage lead program. Coming to Non-exclusive mortgage leads the mortgage consumer’s details are shared with many mortgage lenders so that the consumers will have more options to choose from.
  • Non-exclusive mortgage leads are less expensive than exclusive mortgage leads but the confidentiality ratio is high in exclusive mortgage leads than non-exclusive mortgage lead. Hence to conclude if the mortgage consumer has a good credit profile, the chances of his or her dream home coming true are greater. Exclusive mortgage leads are a gateway through which mortgage lead generators and mortgage lenders build their business and reputation.

Mortgage Refinancing Questions

Mortgage Refinancing is way to replace the existing mortgage with another mortgage. The replacement can happen with the current mortgage lender or a different mortgage lender. Mortgage Lenders created numerous mortgage options which add to the complexities of mortgage. Here are a collection of common questions and answers about mortgage refinancing.

What are the steps to mortgage refinancing?

First, you analyze your current financial situation. This tells how well your financial situation. After, you shop for the best mortgage. Most mortgage lenders have a website. Borrowers can research on the internet. Once the borrower found an advantageous mortgage, the borrower applies for the mortgage refinancing.

How to choose the right mortgage lender, or mortgage broker for mortgage refinancing?

The mortgage lenders differ in mortgage options such as interest rates, mortgage terms, down payment, closing costs, and more. To choose the right mortgage lender requires many mortgage refinance calculations and considerations.

What do I need to complete mortgage refinancing application?

Borrowers need to supply the full names, current addresses, previous addresses, social security numbers, employers information, gross monthly income, property information, asset information, and liabilities information.

When should you do mortgage refinancing?

The life of the mortgage is divided into several mortgage terms. When the mortgage matures at the end mortgage term, the borrower refinances the mortgage. This process is repeated until the mortgage is completely paid out.

The borrower does not necessarily have to wait for the maturity date of the mortgage. Sometimes, the mortgage lender offers a mortgage that is too good to pass. When mortgage lender offers a very good mortgage, the borrower can refinance the mortgage.
If the new mortgage can reduce the life of the mortgage, and reduce the mortgage payment on pay period, it is advantageous for the borrower to refinance the mortgage.

What are the costs involve in mortgage refinancing?

The borrower may have to pay the penalty to refinance a mortgage before the mortgage reaches the end of the mortgage term. Since the mortgage lender loses the interest to be paid to them, the mortgage lender charges penalty. However, a low interest rate on the new mortgage may offset the penalty.

The borrower can pay for the discount points as well. It is the amount to bring down the monthly mortgage payment, or any mortgage payment. Each discount points means one percent.

Using A Reverse Mortgage

Alternatives to Long Term Care Insurance: Using a Reverse Mortgage and Other Methods to Pay for Long-term Care Costs

Because long-term care insurance requires you to be in good health, this planning option is not available to everyone, especially older applicants for whom the premiums may also be prohibitive. If you are at least 62 years of age and you own your home, you could use a reverse mortgage to pay for care at home or for a long-term care insurance policy that otherwise may be unaffordable.

A reverse mortgage is a means of borrowing money from the amount you have already paid for your house. You are freeing up money that would otherwise only be available to you if you sold the house. You can stay in the house until you die, without making monthly payments. The loan is repaid when the borrower dies or sells the home. The balance of the equity in the home will go to the homeowner’s estate.

Payments can be received monthly, in a lump sum or the money can be used as a line of credit. The funds received from a reverse mortgage are tax-free.

While the eligibility age is 62, it is best to wait until your early 70’s or later. The older the borrower, the larger the amount of equity available. There are maximum limits set by the federal government each year as to how much of the equity can be borrowed. Usually only about 50% of the value of the home is made available in the form of a reverse mortgage.

You can use the funds from a reverse mortgage to cover the cost of home-health care. Because the loan must be repaid if you cease to live in the home, long-term care outside the home can’t be paid for with a reverse equity mortgage unless a co-owner of the property who qualifies continues to live in the home.

Use Your Home to Stay at Home Program
The National Council on the Aging, with the support of both the Centers for Medicare and Medicaid Services (CMS) and the Robert Wood Johnson Foundation, is laying the groundwork for a powerful public-private partnership to increase the use of reverse mortgages to help pay for long-term care. The ultimate goal of the Use Your Home to Stay at Home(TM) program is to increase the appropriate use of reverse mortgages so that millions of homeowners can tap home equity to pay for long-term care services or insurance.

Reverse Mortgages Can Help with Long-Term Care Expenses, Study Says

A new study by The National Council on the Aging (NCOA) shows that using reverse mortgages to pay for long-term care at home has real potential in addressing what remains a serious problem for many older Americans and their families.

In 2000, the nation spent $123 billion a year on long-term care for those age 65 and older, with the amount likely to double in the next 30 years. Nearly half of those expenses are paid out of pocket by individuals and only 3 percent are paid for by private insurance; government health programs pay the rest.

According to the study, of the 13.2 million who are candidates for reverse mortgages, about 5.2 million are either already receiving Medicaid or are at financial risk of needing Medicaid if they were faced with paying the high cost of long-term care at home. This economically vulnerable segment of the nation’s older population would be able to get $309 billion in total from reverse mortgages that could help pay for long-term care. These results are based on data from the 2000 University of Michigan Health and Retirement Study.

“There’s been a lot of speculation whether reverse mortgages could be part of the solution to the nation’s long-term care financing dilemma,” said NCOA President and CEO James Firman. “It’s clear that reverse mortgages have significant potential to help many seniors to pay for long term care services at home.”

According to the study, out of the nearly 28 million households age 62 and older, some 13.2 million are good candidates for reverse mortgages.

“We’ve found that seniors who are good candidates for a reverse mortgage could get, on average, $72,128. These funds could be used to pay for a wide range of direct services to help seniors age in place, including home care, respite care or for retrofitting their homes,” said Project Manager Barbara Stucki, Ph.D. “Using reverse mortgages for many can mean the difference between staying at home or going to a nursing home.”

Seniors can choose to take the cash from a reverse mortgage as a lump sum, in a line of credit or in monthly payments. If they choose a lump sum, for example, they could pay to retrofit their home to make kitchens and bathrooms safer and more accessible – especially important to those who are becoming frail and in danger of falling. If they choose a line of credit or monthly payments, an average reverse mortgage candidate could use the funds to pay for nearly three years of daily home health care, over six years of adult day care five days a week, or to help family caregivers with out-of-pocket expenses and weekly respite care for 14 years. They could also use it to purchase long-term care insurance if they qualify.

“Up until now, though, most of these seniors have not tapped the equity in their homes — estimated at some $1.9 trillion — to pay for either preventive maintenance or for services at home,” noted Peter Bell, executive director of the National Reverse Mortgage Lenders Association. Noting that the average income of men aged 65 and over is $28,000 and $15,000 for women, he added, “This study shows that unlocking these resources can help millions of ‘house rich, cash poor’ seniors purchase the long-term care services they feel best suit their needs.”

What is it about Reverse Mortgages that instills apprehension in some Older Americans?

Fears persist despite the enthusiastic endorsement of groups such as AARP and the National Council on Aging.

A major reason is likely to be the fact that a lot of misinformation has been circulating about this very attractive financial tool for those that qualify. Older Americans often consult friends and relatives who are likely to be misinformed themselves.

Since the Reverse Mortgage can be a beneficial and safe alternative for Older Americans, it’s important to correct the major misconceptions associated with them and allow older homeowners to make an informed decision about whether a Reverse Mortgage makes sense for them.

Probably the most common misconception is ” If I obtain a reverse mortgage I might lose my home”. I frequently hear this when I’m advising elders about planning options related to long-term care. The fact is that the federal government requires that the home must stay in the name of the borrowers only. Since the Reverse Mortgage is a mortgage, a lien is placed on the property like all other mortgages. This assures that the lender will eventually be repaid but for only the amount owed which is principle, interests, and closing costs, just like any other mortgage.

The great advantage of this type of mortgage is that -unlike traditional mortgages-there are no monthly payments. Not having to worry about monthly bills has to be one of the greatest gifts one could wish for in retirement.

More than ninety-five (95) percent of Reverse Mortgages approved are the Federal Housing Administration (FHA) Home Equity Conversion Mortgage (HECM) loans. These loans are guaranteed the full protection of the United States Government through use of a two (2) percent insurance fee paid on all FHA Reverse mortgages.

Another misconception is that Reverse Mortgages are costlier than other mortgages. The truth is that closing costs average only about one (1) percent more than a traditional FHA mortgage would be on the same property. The Reverse Mortgage may even be lower in cost due to the fact that conventional mortgages can charge more than the two (2) percent origination fee allowed on all Reverse Mortgages.

Another cost factor is of course, the interest rate. The FHA Reverse Mortgage interest rate is based on the one (1) year United States Treasury note instead of the prime rate, which most conventional mortgages use as their base. This gives the FHA Reverse Mortgage an interest rate LOWER than most adjustable conventional mortgages.

Another myth about reverse mortgages is that the home goes to the lender after the loan becomes due at death or when the last survivor permanently leaves the home. In my experience, the loan amount of approved is generally about half of the appraised value of the home. (The older the homeowner, the greater the amount available for borrowing because it’s assumed that the funds will be available for a shorter period.

All of the equity left after payment to the lender, goes to the estate or heirs of the borrower. This is exactly the same procedure followed with regular conventional mortgages.

Since the Reverse Mortgage is a “non-recourse” loan the most the estate will be required to pay to the lender is the value of the home at the time of repayment. This is true even if the home value decreased or the borrower lived to an unusually old age.

Another attractive feature of this financing tool is that the requirements for getting a Reverse Mortgage are not nearly as restrictive as other loans. Since no re-payment is made as long as one (1) surviving borrower remains in the home, there are NO income or credit requirements. Another requirement is that both spouses must be sixty-two (62) or older with no upper age restriction. The only other requirement is that the borrowers alone must own the home with no others on the deed. The home may also be in a revocable trust as long as the eligible borrowers are the only trustees.

All property types are Reverse Mortgage eligible except manufactured (mobile) homes built before June 15, 1976 and co-operatives (Co-ops). Co-ops are expected to be eligible in the future when FHA issues final approval. Homes with existing mortgages that can be paid from the equity can obtain Reverse Mortgages.

Still another misconception is that a Reverse Mortgage is taxable and affects Social Security and Medicare. That is NOT the case. Reverse Mortgage proceeds are not taxable because they are not considered income but is, in fact, a loan.

It should be noted that Supplemental Security Income (SSI) and Medicaid might be affected if you exceed certain liquid asset amounts. We can show you how to structure the loan so that a Reverse Mortgage will not affect these benefits.

Now that the myths of Reverse Mortgage have been removed, a qualified homeowner may ask, how can I get more comprehensive information? Is your local bank the answer? Only a few lenders have been approved for participation by the federal department of Housing and Urban Development, which oversees the program. Most local and regional banks do not offer Reverse Mortgages.

AARP, the Federal National Mortgage Association, American Bar Association (ABA) and the National Council On Aging provide consumer information about reverse mortgages. The ABA passed a resolution supporting Reverse Mortgages in August of 1995.

Second Mortgage

Opting for a second mortgage is a decision which warrants a great deal of consideration. Before entering into a second mortgage, homeowners should carefully weigh the advantages and disadvantages of taking on a second mortgage and should also carefully review the different options available. A second mortgage is often enticing because these closed-end loans can be used for any purpose and may even be tax deductible but caution should be exercised because defaulting on these loans can put the home under which the second mortgage was secured in jeopardy.

The Benefits of a Second Mortgage

We have already stressed the importance of carefully weighing the available options in deciding whether or not to take on a second mortgage. In this section we will outline the benefits of a second mortgage. Although a second mortgage may increase the amount the homeowner pays in the long run, there are other worthwhile benefits to this type of mortgage. Some of these benefits include:

· Debt consolidation

· Tax advantages

· Home improvement possibilities

· Favorable interest rates

Debt consolidation is just one of the many advantages to a second mortgage. A second mortgage is typically secured based on the equity in the home but it can often be used for any purpose. This gives homeowners the opportunity to consolidate several debts including high interest credit card debt, under the umbrella of a second mortgage. Debt consolidation can greatly increase monthly savings by allowing the homeowner to repay high interest debt at the lower interest rate associated with the second mortgage.

There are also tax advantages to securing a second mortgage. As we mentioned credit card debt and other debts may be consolidated under a second mortgage. This is beneficial because tax laws may enable the homeowner to deduct the interest on their second mortgage.

The opportunity to make improvements to the home also exists with a second mortgage. As previously mentioned, a second mortgage can be used for a variety of purposes. Many homeowners take out a home equity line of credit which enables them to cash out on the equity of their home for purposes such as home improvement.

Finally, favorable interest rates are another reason for homeowners to opt for a second mortgage. In making this decision the homeowner should calculate the cost of taking out the second mortgage and compare this cost to the long terms savings potential. If the long term savings potential exceeds the cost of the second mortgage, it is a worthwhile investment.

Types of Second Mortgages

In making the decision to take out a second mortgage there are two main options which homeowners should consider. The most popular types of second mortgage include a home equity line of credit or a closed-end second mortgage. In this section we will explain these two options.

A home equity line of credit is essentially a revolving line of credit which enables the homeowner to take advantage of the equity in his home. The maximum amount for this credit line is usually based on a percentage of the appraisal value, usually 75%-85%, of the home minus the balance remaining on the original mortgage. Home equity loans are ideal for homeowners who wish to have a revolving credit line at their disposal and who are secure in using their home as collateral in securing this loan.

The significant difference between a closed-end second mortgage and a home equity line of credit is the closed-end mortgage offers a fixed loan amount to be repaid over a fixed amount of time while the homeowners can withdraw additional funds from the home equity line of credit whenever there is existing equity in the home. The closed-end second mortgage is ideal for homeowners with a one time specific need for funds.

Considerations before Taking on a Second Mortgage

We have discussed the benefits of a second mortgage and the types of mortgages available but homeowners should also evaluate the risks of taking out a second mortgage. Some of these risks include:

· Losing the home if the second mortgage is not repaid

· The costs of taking out a second mortgage

· Prepayment penalties

Perhaps one of the greatest risks of a second mortgage is the threat of losing the home if the mortgage is not repaid in a timely fashion. It is important to remember the collateral for a second mortgage is often the home itself. Becoming default on the second mortgage can result in loss of the home.

There are certain expenses associated with taking out a second mortgage. These costs may include application fee, loan origination fees, appraisal fee, survey costs, home inspection fees, title fees, homeowner’s insurance and mortgage insurance. These fees could be equal to 3%-10% of the outstanding principal on the first mortgage. Before investing in a second mortgage, the homeowner should ensure the overall cost savings of the second mortgage will exceed the fees associated with taking out the second mortgage.

How to Choose your UK Mortgage

This quick guide shows you potential mortgage choices for each type of borrower. Please note that this is a general guide and we should stress that you are always better off talking to a specialist mortgage adviser


One thing that applies to almost all types of mortgage is the choice of a fixed rate mortgage or one with a variable interest rate.

The best choice depends on your own circumstances and to an extent on interest rate levels at the time, but things to consider are:

* Can you afford to have your payments go up each month? This could happen with a variable rate mortgage.

* Are rates generally low at the moment? It could be a good time to get tied into a fixed rate mortgage.

* Do you want the security of a fixed monthly payment for several years? Fixed rate periods from 1 to 10 years are available.

* Are you having difficulty borrowing enough money? An interest only mortgage can mean lower monthly repayments ie you can borrow more against your salary. But there are drawbacks.

To understand which option will suit your circumstances, discuss your options with a UK mortgage specialist, who will advise you on suitable choices.

Here are some specific tips depending on your particular mortgage needs

First Time Buyers

As a first time buyer, you are likely to have some particular requirements. You will probably have a very small deposit or possibly no deposit at all. You may be having to push your budget to the limit just to afford a mortgage, but are determined to get a foot on the property ladder.

There are several suitable solutions:

· 100% mortgages to many lenders offer 100% mortgages aimed at first time buyers. These are normally repayment mortgages and can be a good option to get you started.

· If you have a deposit, but can’t afford large monthly payments, an option to consider might be an interest-only mortgage, where your monthly payments only consist of interest, and you don’t make any payment towards the capital sum.

· Choose a mortgage term longer than 25 years to it may seem daunting but many lenders will offer mortgages with terms up to 40 years.

Any of these choices can be a good way to get started in home ownership, with a view to moving to a better deal in 2-5 years time when you have some equity in your property and are perhaps able to afford larger monthly payments. Remember, very few people stick with the same mortgage for 25 years anymore. It is normal to change mortgages for a new deal every 2-5 years.

Self-Employed Mortgages

Getting a mortgage for self-employed people has always been a bit more of a challenge. Even if your business is well established, it can be hard to prove your income and since mortgage lenders assess your ability to pay based on net income, you could find that they underestimate your borrowing ability.

So what are the choices?

· Self-Certified Mortgages. It is not necessary to provide audited accounts and to prove your income, although you will still be required to provide some evidence that you can afford the monthly payments.

· If your business is well-established, and you can provide 3 years or more of audited accounts, showing a stable income, you should not have too many problems. Lenders are more flexible than they once were.

As with other specialist mortgages, it can be worth getting the advice of an Independent Financial Adviser to make sure you get the best deal for you.

Already a Homeowner?

If you are already a homeowner (with or without a mortgage) then you might want to release some equity from your home to give you a cash lump sum.

This means that if you have paid off a significant amount of your mortgage and/or property prices have risen, you can benefit from some of the “profit” that is locked into your house without having to sell the house.

Lenders provide a variety of packages for doing this, but they are generally described as “equity release” mortgages.

Typically you will be able to borrow up to 95% of the equity in your home, given to you in a lump sum which you then pay back like a normal mortgage. This can be used to pay for home improvements, lifestyle changes, home repairs to almost anything, really.

Get a Better Mortgage Deal

Don’t forget that just because you have a mortgage, it doesn’t mean that you can’t get a better one that will cost you less, or alternatively a mortgage with a shorter term so that you can pay it off sooner.

Hunt around to whether you want to find a more competitive interest rate, a long-term fixed rate deal or you want to increase or decrease the remaining duration of your mortgage to you will probably find a lender who is able to offer just what you want, and could save you a significant amount every year.

Discussing your requirements with an IFA can often help uncover the best mortgages, which sometimes come from quite minor building societies.

Big Bonuses, But a Low Basic Salary?

If this is you, then you might find it difficult to get a repayment mortgage that meets your requirements. This is because bonuses and overtime are hard to predict, not guaranteed and are normally excluded from your assessed income by mortgage lenders. This means you could end up being offered a much smaller mortgage than you think you can afford.

The solution to this could be a flexible mortgage. A relative of the interest-only mortgage, flexible mortgages have monthly payments which are interest-only, but allow you to make ad-hoc repayments towards reducing the capital sum.

For example, if you get a quarterly bonus, every 3 months you could make a payment towards reducing the capital sum of your mortgage, whilst paying smaller, interest-only payments each month [from your salary].

Flexible mortgages like these can be helpful for anyone with an unevenly distributed income who receives occasional large payments, rather than solely receiving salaried income.

Are You An Expatriate?

As an expatriate, your mortgage needs are a little different. Buying property abroad is difficult with a UK mortgage, although there are some high street lenders that have affiliated with foreign lenders, particularly in Spain, to provide easy access to mortgages in some other countries.

On the other hand, many expatriates look to buy a property in the UK in preparation for their eventual return. This is more straightforward and there are several big lenders who can assist with this.

The best approach is probably to find an IFA who has experience of setting up this kind of mortgage and see what they can offer you. There may be some complications but it should certainly be possible.

Buying To Let?

Buying to let has become very popular in recent years. Whether you count yourself a professional landlord or are just looking to buy a second property to rent out as an investment, buy to let mortgages are fairly mainstream now and as such are quite widely accessible.

You may notice some differences to residential mortgages:

· Can only borrow up to around 75% of property value

· Mortgage terms may not be extendable beyond 25 years, often less still for interest-only deals.

As with all mortgages, you will have to undergo a credit check and will have to provide some evidence that the property you are buying is a suitable business proposition to i.e. you can rent it for a suitable amount and/or can make the payments yourself if needed.

Want To Let Out Your Home Temporarily?

There are times when homeowners want to let their home on a temporary basis to perhaps they are moving abroad for a year or two, or elsewhere in the UK, but want to maintain their main home and rent it out to cover the costs of the mortgage.

Most residential mortgages will allow you to do this to exact terms and conditions will very from lender to lender, but as long as you tell your lender you want to let, you will probably find they are happy for you to do so.

Are you a Muslim, Looking for a Sharia-Compliant Mortgage?

Islamic mortgages used to be almost impossible to obtain in the UK, but in the last 5 years, the number of lenders offering mortgages that comply with Sharia law has grown considerably. It is now possible to get an Islamic mortgage for your house from several high street lenders with no more difficulty than a regular mortgage.

Islamic mortgages available in the UK fall into two main categories. By far the most popular are mortgages based on the Ijara principle. Also available are mortgages based on the Murabaha principle but these tend not to be affordable to most borrowers, especially younger people just starting out.

Getting Divorced, Need Two Mortgages?

Getting divorced can be a difficult and traumatic experience, often not least because of the financial complications. These can cause people with previously exemplary financial records to get into problems, and can sometimes make it difficult for the divorced individuals to get mortgages.

Mortgage Debt Consolidation Loan

A mortgage debt consolidation loan may be a solution to your high interest debts. Credit Card debt is most likely what borrowers will choose to consolidate first since interest rates and monthly payments are so high. By performing a cash-out refinance of a first or second mortgage you can consolidate your non-mortgage debt, mortgage debt, or both. Mortgage debt includes first mortgages and second mortgages such as a home equity line of credit or home equity loans. Non-mortgage debt would be credit cards, medical bills, student loans, auto loans, other consolidation loans, and personal loans. A cash-out refinance is a typical mortgage refinance method that can reduce your monthly payments, change your rate from variable to fixed, or change the term of your loan.

You have at least four popular techniques to consider when creating a mortgage debt consolidation loan. You can consolidate non-mortgage debt in a first mortgage. You may consolidate a second mortgage into a first. Another option is to consolidate non-mortgage debt and a second mortgage into your first. And finally you may wish to consolidate non-mortgage debt in a second mortgage.

Defaulting on your mortgages can lead to foreclosure and losing your home. A mortgage debt consolidation loan is not without its pitfalls. A borrower needs to be aware of all of their options when dealing with debt.

Consolidate Your Credit Card Debt

One popular debt to consolidate with a mortgage debt consolidation loan are credit cards. Over the past few years many people took advantage of easy access to credit cards with low introductory APRs or no interest balance transfers. After the introductory period the interest rates often jump into double digits. After running up a high outstanding balance the higher interest rates make credit card debt hard to carry.

Important Terminology

A cash-out refinance can reduce your monthly payments, change your rate from variable to fixed, or change the term of your loan. Typically with a cash-out refinance mortgage debt consolidation loan you refinance your existing mortgage with a larger loan using the equity in your home and keep the cash difference. This cash can then be used to payoff non mortgage debt such as credit cards, medical bills, student loans, auto loans, other consolidation loans, and personal loans. Now you will only need to repay one loan and to a single lender.

A second mortgage is a loan taken after your first mortgage. Types of second mortgages include a Home Equity Line of Credit (HELOC) and a home equity loan. A HELOC is attractive because it is a line of credit that you can tap into repeatedly. For some a home equity loan is a better choice because it usually offers a fixed interest rate.

Four Types of Loans

The simplest way for a homeowner to consolidate their debts is to consolidate all non-mortgage debt in a first mortgage. You perform a cash-out refinance and consolidate all of your non-mortgage debt. You leave your second mortgage as is if you have one or better yet you won’t need to take one out.

If you have an existing second mortgage you can consolidate it into your first. In this case you do a cash-out refinance on your first mortgage to consolidate your second. This is not desirable if you want to consolidate a substantial amount of non-mortgage debt. It is worth mentioning to show you a more complete picture of your options.

A great way to go is to consolidate non-mortgage debt and second mortgage in your first. This way you can consolidate both your second mortgage and all of your existing non-mortgage debt through a cash-out refinancing of your first. This is most desirable because you can have a single payment and a single lender for all of your debt.

One additional method is to consolidate all of your non-mortgage debt with a second mortgage. A second mortgage is a loan taken after your first mortgage. Types of second mortgages include a Home Equity Line of Credit (HELOC) or a home equity loan with a fixed interest rate. This allows you to consolidate your existing non-mortgage debt by doing a cash-out refinance of your second mortgage only, leaving your first mortgage alone.

Loan Considerations

Typically credit card debt, student loans, medical bills, and others are considered unsecured debt. First and second mortgages are secured debt. Secured debt often grants a creditor rights to specified property. Unsecured debt is the opposite of secured debt and is is not connected to any specific piece of property. It is very tempting to consolidate unsecured debt such as credit cards using a mortgage debt consolidation loan, but the result is that the debt is now secured against your home. Your monthly payments may be lower, but the due to the longer term of the loan the total amount paid could be significantly higher.

For some people debt settlements or even debt counseling is a better solution to their debt problems. A mortgage debt consolidation loan may only treat the symptoms and not ever cure the disease of financial problems. Rather than convert your unsecured debt to secured it might be better to work out a settlement or a payment plan with your creditors. Often a debt counselor or advisor who is an expert in what your options are can be your best solution.

Just One Option

You have many options for a mortgage debt consolidation loan. Educating yourself is well worth it when considering your next steps. Review the four techniques mentioned above and decide if any are best for you. Also consider contacting your non-mortgage debt creditors directly to work out a payment plan or a debt settlement if necessary. Sometimes before committing to any action you should meet with a debt advisor to learn more about credit counseling.

Mortgages and Remortgages

If you’re using a mortgage to buy your home but are not sure which one will suit your needs best, read this handy guide to mortgage types in the UK. Taking out a mortgage has never been easier.

Fixed Rate Mortgages – the lender will set the APR (Annual Percentage Rate) for the mortgage over a given period of time, usually 2, 3, 5, or 10 years as an example. The APR for the mortgage may be higher than with a variable rate mortgage but will remain at this ‘fixed mortgage rate’ level, even if the Bank of England raises interest rates during the term of the mortgage agreement. Effectively, you could be said to be gambling that interest rates are going to go up, above the level of your fixed rate mortgage interest rate. If this happens, your mortgage repayments will be less than with a variable rate mortgage.

Variable Rate Mortgages – the lender’s mortgage interest rate may go up or down during the life of the mortgage. This usually happens (though not exclusively) soon after a Bank of England interest rate change. Most people consider that opting for a variable interest rate mortgage is best done when interest rates in general are likely to go down. They can then take advantage of these lower rates when they occur. It’s a bit of a gamble but if they are right, it could really work in their favour.

Tracker Mortgages – have a lot in common with variable interest rate mortgages in that the APR of the mortgage can go up or down over the term. The key difference between a tracker mortgage and a variable interest rate mortgage is that the lender will set a margin of interest to be maintained above the Bank of England base lending rate. So, as the Bank of England, in line with monetary policy, raises or lowers the base lending rate of interest, so the tracker mortgage interest rate will follow. Over the lifetime of the mortgage, it could be said that the borrower will neither be better off nor worse off because of interest rate fluctuations.

Repayment Mortgages – you will be required to pay a proportion of the capital element of the mortgage (how much you originally borrowed) together with a proportion of the interest that will have accrued on the capital element, with each monthly repayment. In recent years, repayment mortgages have become highly popular over the previous favourite – endowment mortgages. This is because, unlike endowment mortgages, as long as you keep up your monthly repayments, you are guaranteed to pay the mortgage off at the end of the agreed term. Monthly repayments may possibly be a little more expensive but many borrowers say that at least, they have peace of mind.

Interest Only Mortgages – very common amongst borrowers who are looking to secure a second property. The reason being, with an interest only mortgage, the borrower will only be required to make monthly repayments based on the interest element of the mortgage. The lender will require the capital element to be repaid at the end of the term of the mortgage. Again, as with variable rate mortgages, this could be regarded as being a little bit of a gamble because the borrower is hoping that the property will be worth at least as much at the end of the term of the mortgage, as it was at the beginning, allowing it to be sold and the capital element of the mortgage to be paid off. Any capital gain on the property (although possibly subject to tax) is yours. It could be argued that experience tells us that property prices rarely go down in the long term, but it can never be guaranteed.

Capped Mortgages – a combination of the fixed rate mortgage and the variable interest rate mortgage. A cap or ceiling is fixed for a set period of time. During this period, if interest rates in general rise, above the capped interest rate, the borrower will not pay anything above the capped level. Correspondingly, if interest rates fall, then the rate of interest charged by the lender, will also fall so it could be argued that the borrower gets the best of both worlds. It could also be said that a capped rate is like having a set of brakes on your mortgage, but beware, the lender is also likely to charge a redemption penalty on this type of mortgage, making it less portable than some of the other options available.

Discounted Rate Mortgages – here, the lender may offer a reduced level of interest to be charged over a set period at the start of the mortgage term. Many first time buyers or people who expect their salaries to rise considerably during the discounted rate period opt for this type of mortgage but it should be noted that the reduced rate period will come to an end and when it does, the monthly mortgage repayments to the lender may rise sharply. The lender may also charge a slightly higher rate of interest compared with other types of mortgage over the rest of the term of the loan in order to recoup the monies that they have foregone during the discounted rate period. There’s no such thing as a free lunch!

Offset Mortgages – an interesting newcomer to the UK mortgage market, although still comparatively rare in terms of choice and availability. The mortgage is linked to the borrower’s current account. Every month, the minimum mortgage repayment is paid to the lender but where there is a surplus of cash in the account after other uses and debts have been paid, this is also paid to the lender. Over the months and years, the borrower can potentially pay off their mortgage much quicker and have accrued much less interest than with other types of mortgage provided that a reasonable surplus is maintained in the current account.

Texas Mortgage Loans

Did you know that if you are searching for a mortgage online you are one of the most valuable commodities on the internet today? Why?

Because you may be money in the bank if you APPLY ONLINE! Many who search online for anything from mortgages to socks go to a search engine, type in their request and are happily led down a path of ease and convenience right into the arms of an advertiser (usually on the first search page) claiming they have just what they need. In the mortgage business there are three types of advertisers: mortgage lead generators, mortgage lenders and mortgage brokers. They spend millions of dollars every year just to have a chance to sell you their products and services. Two of the above advertisers are not always the best option and could end up costing you serious money, time and a few headaches. We’ll explain below:

The Mortgage Lead Generator – This company’s primary function is to make money by enticing you to apply online. Then they sell your information (lead) to mortgage lenders and mortgage brokers. Keep in mind this is how they make money! They advertise convenience and the fact that you will be in control when several mortgage lenders or mortgage brokers compete for your business. If you are an experienced mortgage shopper you might come out of this experience unscathed but if you are a first time home buyer and have little experience with the mortgage process here are some questions to think about.

1. Do you know anything about the company or companies that will be calling you? Do they have good track record?

  • These companies may be reputable but you are blindly trusting the mortgage lead generator who just sold your information at a premium to these random companies you know nothing about! The inexperieced mortgage shopper simply does not know the right questions to ask. Most think it’s all about the lowest rate and never focus on the company or the personal experience of the loan officer they are speaking with which is exactly what the lender is hoping for! It’s simply a roll of the dice!

2. Does the loan officer you’re speaking with have any experience?

  • Did you know that the position with the highest turnover in the mortgage industry is none other than that of the loan officer! I have 20 years of experience to back this up. Trust me when I say that the Loan Officer position is a revolving door espeically at large lenders. An inexperienced loan officer can cost you serious money and time especially if you don’t know the difference! Roll the dice!

3. Does the ease and convenience of applying for a mortgage online outweigh all the negatives and still save you time and money in the long run?

  • Many mortgage lead generators charge another fee on top of their initial lead fee in the event a lender closes a loan for you. This additional fee is many times charged directly back to you at close! This fee is generally in the $200.00 to $300.00 range! Now what you thought was an easy and convenient way to find a mortgage online actually costs you significant dollars! Easy and convenient are rarely ever free ! Roll the dice!

4. Will you enjoy persistent sales calls from several sales people daily for at least the next 30 days?

  • If you apply with a mortgage lead generator you are authorizing this wonderful experience so thoroughly enjoy it. Most people find this quite annoying. If you aren’t up to the task of sifting through the endless barrage of phone calls and emails you may cave in and go with the smooth talker and not the best deal. Not to be redundant but Roll the Dice!

The Mortgage Lender – Of course this is the company with the money that you need. They have underwriters who look at your application and decide if you are approval worthy. They have processors who work with you to get all the documentation necessary to close your loan and they also have, you guessed it, loan officers, who will sell you their specific lenders products. Some say this is the best way to go when shopping for a mortgage loan because you are dealing directly with the money source. No middle man means savings. But the mortgage lender stilll may not be ideal choice for the reasons cited below.

1. The Loan Officer – Again you may get someone who knows what they’re doing and then you may not!

  • Remember that large mortgage lenders have the highest turnover within the loan officer position. Mortgage Lenders unfortunately are most often glorified Loan Officer Training Centers. The Loan Officers that actually begin to understand their role most often move on to mortgage brokers where there is more opportunity to succeed. (see reasons cited below) And you still may be working with a middle man depending on the operational structure of the lender. At many lenders the loan officer has no direct access to the underwriting and processing departments effectively reducing the so called direct lender benefit. Many times you are forced to deal with someone you’ve never met to try and get your loan closed!

2. Limited options with products and rates!

  • The lender is always limited to selling you their specific products and rates which many times puts you at a disadvantage in finding the best available rates and programs for your unique situation. This is a Huge factor! Mortgage Brokers on the other hand are not tied to one speicific lenders products and programs. More about this later.

3. Efficency always trumps service!

  • Because profit margins continue to shrink for the mortgage lender especially those who sell their loans on the secondary market lenders are constantly looking for ways to automate their processes and become more efficient. Bad news for the consumer because this means doing more with less people. Ever heard the expression overworked and underpaid? This happens quite often at mortgage lenders. Again I’ve seen this in action. Frustration for borrowers runs high when there are delays and a general lack of personalized customer service.

The Mortgage Broker – OK I won’t throw any punches here because I work with a mortgage broker! The Mortgage Broker has the same problem finding and keeping experienced loan officers. Generally the larger broker shops with 10 or more loan officers have the biggest problem policing what their loan officers are doing. Normally the smaller brokers have more stability and experience on their side.

  • Mortgage Brokers simply have more available options in products and programs for the mortgage loan shopper because they are not tied directly to any one mortgage lender but have relationships with many. This makes a mortgage broker a much more attractive option for a mortgage shopper online.
  • In addition most mortgage brokers have relationships with Realtors, Builders, Appraisers, Title Companies, Surveryors, Home Inpsectors, Insurance Agents etc…. full service, one stop benefit for most mortgage shoppers who don’t have these relationships established.
  • Mortgage Brokers can provide invaluable one on one personalized service that large lenders simply cannot. If you like you’re hand held, frequent updates, phones answered and calls returned quickly and the ability to quickly place your file with another lender if one lender fails then working with a professional experienced mortgage broker is the way to go. If you are a first time homebuyer it really makes good sense.

Also as you begin your search online for the right lender or broker follow this rule. Don’t apply with anyone you’ve never met. Meaning talk with a loan officer before you ever apply online. (Of course this rule of thumb precludes utilizing the mortgage lead generator.) This way you never feel obligated to anyone and can remain objective until you firmly decide who you want to trust with your mortgage loan needs. There are many excellent informational sites that fully explain the mortgage loan process and many that offer free tips for inexperienced mortgage shoppers. Take the time to use the web to educate yourself. You’ll be glad you did!