Mortgage and an auto loan are two of the biggest loans you’ll probably ever borrow. Some lenders require that you put forward a certain percentage of the home or auto cost because lending you 100 percent of the cost is risky for them. While you may find some lenders who don’t require a down payment and others who allow you to pay your own payment with another loan, there are several benefits to coming up with...
In an effort to prevent another mortgage crisis, the Consumer Financial Protection Bureau has published a new rule that’s intended to ensure that homebuyers end up with mortgages they can afford, barring unforeseen changes in income or other expenses.We know the mortgage crisis was caused, in part, because many homebuyers allowed to take out mortgages they couldn’t afford over the long term. Some of the borrowers qualified for adjustable rate mortgages with initially low interest rates,...
Your mortgage lender may give you the option of skipping a mortgage payment, for example, at the beginning of your mortgage or refinance. While it may seem like they’re doing you a favor, skipping that payment could actually cost you thousands of dollars by the time you’re done paying off your loan. Lender-Allowed Skipped Payments Skipping a payment, one that your lender is allowing you to skip, is easy in the short-term, but it actually costs...
Preparing for a mortgage can be a stressful process. The lender wants to see that you have a solid credit history, a low amount of debt, a stable employment history, and enough income to afford the monthly payment on the mortgage you’re looking for. In the months leading up to a home purchase, you’ll be preparing for the mortgage application. It’s wise to focus on your whole financial picture, not just to qualify for a mortgage,...
As troubled homeowners continue to face foreclosures through the mortgage crisis, shady mortgage relief companies have sprung up to “help” unsuspecting consumers - while charging advance fees without providing the services promised.But mortgage relief companies are no longer allowed to charge homeowners up-front fees, thanks to the Federal Trade Commission’s new Mortgage Assistance Relief Services (MARS) Rule.“Banning the collection of up-front fees will protect homeowners from being victimized,” FTC Chairman Jon Leibowitz said. “This is especially...
If you have a mortgage, you may have received a letter from a company offering to "help" you pay your home off faster by enrolling you in a bi-weekly mortgage program. Their pitch may sound very convincing and probably seems to make a lot of sense.Here's how it works: On the traditional payment schedule you make one payment a month, equalling twelve payments a year. On the bi-weekly schedule, you make a half payment every two...
Getting behind on your house payments is a tough situation. It's best to tackle the problem before it get too far out of hand and your lender forecloses on your home. Take steps to try to save your home: Contact your lender ASAP. Prepare to contact your mortgage company as soon as you know there is a problem in making your payments on time. Lenders want to work with their borrowers to resolve problems with temporary...
Is it a good idea to prepay your mortgage?Mortgage prepayment is a topic that financial experts often don't agree on. Many financial advisors say that you can get a better return on your money if you invested the extra cash, rather than use it to pay additional to principal. Some money gurus argue that it's better to pay off a mortgage for the security of a sure thing and a guaranteed return on your money.Homeowners who've...
Record numbers of foreclosures in the U.S. have presented scam artists with an opportunity to take advantage of desperate homeowners when they're already down. The Federal Trade Commission issued a warning to consumers about crooks promising to help troubled homeowners avoid foreclosure. These scams can be very elaborate and seem legitimate to the unsuspecting homeowners. Then the crooks disappear with the homeowner's much-needed cash by the time they realize that the scam artist has done nothing...
Escrow payments will occasionally change.If your house payment consists of PITI (principal, interest, taxes, and insurance), then part of your monthly payment is going into an escrow account. Accurate escrow payments ensure that taxes and insurance are properly budgeted for. The amount of the escrow payment can change if you or the lender realize that too much or too little is being collected for those expenses. The escrow payment can also change if the property tax...
