What Are Mortgage Points On Mortgage Loans?

Since mortgage points can save you a lot of money, it is important for you to understand what they are and how they work.
The interest rate defines the amount of your monthly payments and thus, your monthly installments could be defined using 1% of your mortgage loan amount as a factor. That is exactly what a mortgage point is: the unit that describes how expensive or inexpensive the costs of a mortgage loan are and any variations are also computed in mortgage points.

Different Mortgage Points

The interest rate charged for the loan can be minced into smaller portions and the reason for the raise or the reduction can be identified. Thus, whenever a variable reduces the interest rate by one point, we say it reduces the risk involved in the transaction. On the other hand, whenever a variable raises the interest rate by one point, it is said to be the reason for origination of risk.

For instance, certain points can be purchased. This actually implies a down payment on your loan that obviously reduces the interest rate you'll end up paying for your mortgage loan. These points are therefore discount points and the cost of them will vary according to the loan amount you have required when you applied for the loan. A Mortgage point is equal to 1% of the loan amount.

Flexibility and Limits

There's a lot of flexibility when it comes to mortgage points. You can obtain mortgage discount points by paying in advance the equivalent to 1% of the total amount of the loan. Origination points are charged for administrative costs, closing fees and different fees and costs charged by the lender for a particular loan.

However, there are limits that cannot be bypassed. Your interest rate cannot be reduced or increased beyond reasonable boundaries. The limit depends on the type of loan and lender but on common mortgage loans it usually reaches around four points.
Each mortgage point can be divided into fractions and usually does as many variables only reduce or increase the interest rate half a point or a quarter of a point. Thus, you can purchase half a mortgage point too to obtain an interest rate reduction.

Acquiring Discount Points

The benefits of acquiring discount points are variable and depend mainly on the length of the repayment program and your plans as regards to the property. If you plan to retain ownership of the property for many years, then, getting discount points is a smart idea because you can spread the payments over the whole life of the loan and get low monthly installments you'll be able to afford without sacrifices while you enjoy the property.

But, if you don't want to retain ownership of the property for such a long time, it makes no sense to put money down, when you will be selling the property in the near future and you could transfer the costs to the next owner by accepting a higher interest mortgage loan with no down payment that you won't have to repay in full.

To Avoid Foreclosure Refinance Or Renegotiate Your Home Loan

Many homeowners are feeling the pressure of making their loan payments and are seeing the possibility of foreclosure. Refinance or renegotiation of home loans has become an increasingly popular and simple solution to his potential disaster. You can refinance completely and essentially have a whole new loan with better rates and a more manageable payment or you can take your existing loan and renegotiate your payments so that they fit your current budgetary needs.

If you have a pretty good credit rating and are still relatively stable financially then a refinance is probably your best option. You can go to a lender or bank and get a new loan with better interest rates and more manageable payment. If you are in the beginning years of your current loan then this makes sense. If you are close to the end of your current mortgage, it may make sense to make adjustments elsewhere.

Make an appointment with a financial counselor or banker that you trust and ask the important questions. Find out the details of your current loan; see what the interest rates are and where you stand on remaining principal. These details will all factor into your decision making process. If you are looking for cash back then a refinance would be your best option.

If your circumstances are more dire and you are facing imminent problems in making your loan payment, or have a cash flow issue that will not be changing any time soon, then you are more likely able to renegotiate your current loan. The usual process is to take your current total amount owed, principal and interest and re-write the payment schedule adding more years of payment to the end of the loan. You are not borrowing any more money, or getting a better rate with this option, rather you are getting a smaller monthly payment that will allow you to stay in good standing with your mortgage company and stay in your home.

Although the mortgage industry is in a bad state, it would only get worse if everyone started walking away from their homes. It is in the best interest of lending institutions to make every attempt possible to keep people in their homes. Unfortunately, the best deals always exist for those people with the best credit and debt ratio scores. While a renegotiated mortgage will not necessarily be the best decision you can make for long term financial solutions, it will keep you in your home now. When your financial situation gets better and your cash flow improves then you can think about rectifying the situation.

Before you let current financial trends get you depressed, do your research and get proactive. You might be better off than you think.

Monday 8AM 02/01/10 Today's Current Mortgage Rates Update News

Today's Current Mortgage Rates Update News as of 8AM on Monday, February 1, 2010, from www.ratealertnow.com. Provides a daily, comprehensive look at how current home loan rates and points were essentially unchanged last Friday from a week earlier. Also offers a look at the potential impact on whether low rates will continue on home loans including home financing, home refinance and home purchase as well as other residential real estate refinancing of all fixed rate mortgages from news about the economy on each day of this new week.



http://www.youtube.com/watch?v=QzBGkrs7Zaw&hl=en

Friday Noon 03/19/10 Today's Current Mortgage Rate Alert News

Today's Current Mortgage Rate Alert News at Noon on Friday, March 19, 2010, from www.ratealertnow.com. Provides a brief glimpse of what's affecting mortgage rates today in reaction to Wall Street market news and data releases plus what's coming up on the Free Mortgage Rates Update at 5PM and the impact on whether low rates will continue on home loans including home financing, home refinance and home purchase as well as other residential real estate refinancing of all fixed rate mortgages.



http://www.youtube.com/watch?v=6FhiO0gVCQU&hl=en

MOBILE HOME LOAN BAD CREDIT

badcreditmortgage-loan.com mobile home loan bad credit http solution are hard money also get instant access to fast results of mortgage loans for people with bad credit with 6 lenders providing instant quotes for those who are looking for bad credit refinancing loans or bad credit business loans funded by private investors on any real estate property with equity. www.hardmoneyloop.com Income and credit can be secondary consideration to non owner occupied and especially on commercial and business loans at http provide results for borrowers seeking bad credit fha loans. Hard Money Loans are collateral-based real estate loans made by private investors instead of banks. They can be funded by private individuals known as PRIVATE HARD MONEY LENDERS or PRIVATE HARD MONEY INVESTORS, trusts, partnerships, real estate investment groups and retirement funds... Hard Money Loan is actually a very simple concept. It is the provision of an actual cash loan made to a borrower by a PRIVATE HARD MONEY LENDERS. Hard Money Loans are funded for business and personal use. The real estate asset may be business or personal property, and the proceeds of Hard Money Loans are not restricted to business use. Creative lending solutions are needed for borrower's who have low credit scores, low income, no cash flow or are in need of a quick closing! Hard Money Loan can finance single family, commercial property - HARD MONEY COMMERCIAL LOANS, unimproved & improved property of all types - HARD MONEY ...



http://www.youtube.com/watch?v=DGq_EkoPCmg&hl=en

Tuesday PM 03/23/10 Today's Current Mortgage Rates Update News

Current Mortgage Rates Update News on Tuesday Evening, March 23, 2010, from www.ratealertnow.com. Provides a daily comprehensive look at how current home loan rates and points were mixed today. Also offers a look at the potential impact on whether low rates will continue on home loans including home financing, home refinance and home purchase as well as other residential real estate refinancing of all fixed rate mortgages from new news about February new home sales on Wednesday.



http://www.youtube.com/watch?v=7xaO6erorfc&hl=en

Monday 5PM 12/28/09 Today's Current Mortgage Rates Update

Today's Current Mortgage Rates Update as of 5PM on Monday, December 28, 2009, from www.ratealertnow.com. Provides a daily, comprehensive look at how today's current home loan rates and points rose today after news of tepid demand for billions of dollars in new 2-Year US Treasury ious. Also offers a look at Tuesday's potential impact on whether low rates will continue on home loans including home financing,home refinance and home purchase as well as other residential real estate refinancing of all fixed rate mortgages from new news about December consumer confidence.



http://www.youtube.com/watch?v=gj-6kDb_Tdc&hl=en

Government Aid For Refinancing Home Loans

Today is a special day for many people, the Government and banking institutions can't make up their minds and the markets are out of control!

But, many people in debt and other financial stress face the various serious business of foreclosure on their homes. To prevent that from happening many will turn to refinancing home loans to bail them out of a bad situation.

One major problem is that there are many companies offering refinancing home loans, trying to cash in on the ever increasing refinancing home loans market, but not all these refinancing home loans actually benefit the emotionally and financially distressed homeowner who is on the brink of losing everything.

At this point in time, the financial lenders have dictated the terms of the refinancing home loans and homeowners, especially with limited resources and poor credit standings pretty much had to accept the terms regardless of how costly those terms would be.

Unfortunately, many homeowners are dealing with higher adjustable rates on their mortgages, but the value of their homes is not increasing. Often time since it is becoming increasingly difficult to sell homes in this market, the equity on the homes is decreasing. This makes refinancing home loans even more difficult resulting in heavy financial setbacks from having to use personal money to help refinance.

The US government will be intervening to help prevent the foreclosure epidemic from totally crippling the economy. The government intends on pouring an additional 300 billion dollars into new mortgages. This way the private financial institutions can offer loans to even the most financially devastated homeowners in an effort to save their property from foreclosure.

A good government selling point is that the American taxpayer will not pick up this new funding burden for refinancing home loans. It will be the government sponsored Fannie Mae and Freddie Mac insurance programs that will pick up the refinancing home loans on mortgages that are in jeopardy. The Fannie Mae and Freddie Mac government chartered organizations will buy the mortgages directly from the financial lenders.

There are drawbacks for private lenders. They will be obliged to refinance loans at less than the value of the home itself. This measure means that banks and other lending institutions will sustain losses from this intervention. While homeowners benefiting from the issuance of these new refinancing home loans would be required to share their profits with the government upon the sale of the property.

The government will also benefit from this funding by collecting fees from financial lenders and from the homeowners as well.

There will be a new agency that will coordinate the Fannie Mae and Freddie Mac programs with the participating financial institutions.

It is expected that close to 500, 000 homeowners could benefit from the new refinancing home loans.

After the initial year of operation this new bill will establish a program to generate affordable housing.

This new government bill has been hailed by some of the economic experts as a good jolt to the sluggish economy and a lifesaver to the homeowners who really need it.

Thanks for reading,

Refinance Home Loan - Benefits You Do Not Know

When the borrower on a home mortgage has come to a position where the terms of the original loan are unacceptable, or more expensive than they need be, given the current economic condition, the borrower sometimes chooses to refinance home loan. In this situation, the original loan is paid off and the loan is replaced with a new loan the terms of which can be similar or can be quite different. In many ways, a refinance loan is like a brand new loan obtained from scratch since the loan equity, appraised value and capacity to repay must be approved by the lender.

Smaller payments

When you decided to refinance home loan, you may be able to structure the loan in such a way as to receive payments that are smaller. This can be very beneficial if your goal is to tighten your belt due to a reduction in income. Sometimes those who are entering retirement years will desire to stay in the same home, but will be living on reduced income, so prefer to reduce expenses to match. Smaller payments on a refinance may be due to a better interest rate that can be gained. If interest rates have dropped enough to offset the refinance loan fees added to a new loan, you may be smart to refinance.

Longer repayment time

One of the benefits that can be arranged when you refinance home loan is taking longer to repay the debt. This is desirable if you want to obtain a larger loan in order to pull out some cash at the time of closing. It may be for the purpose of lowering your monthly payment. Spreading out the same size loan over more years means that the interest paid will be greater, but the payment made will be more manageable in size for the homeowner.

Fixed payment

Another benefit that many borrowers find when refinance home loan with a fixed rate option is that the repayment amount remains the same from month to month. If the proceeds from the home loan have been used to get cash out, it is likely to be cheaper than obtaining personal loans, or maxing out the balances on the credit cards. Once the loan is set, the payment amount remains the same from month to month throughout the course of the loan.

Pay off debts

When you receive cash out amount as part of the home loan refinance, there are many uses for the lump sum cash. You can pay off troublesome debts, particularly those with large interest rates. This will free up available cash for your living expenses or that you can apply to pay down other debts. A refinance can allow you to pay for future expenses as well, such as covering college tuition costs for yourself or for family members. You can use the funds to renovate or do major repairs on the home that you live in. You may even use the funds to take a long desired vacation or holiday trip.

Wednesday 8AM 02/24/10 Today's Current Mortgage Rates Update News

Today's Current Mortgage Rates Update News as of 8AM on Wednesday, February 24, 2010, from www.ratealertnow.com. Provides a daily comprehensive look at how current home loan rates and points plunged yesterday after the weakest February consumer confidence report in a long time. Also offers a look at the potential impact on whether low rates will continue on home loans including home financing, home refinance and home purchase as well as other residential real estate refinancing of all fixed rate mortgages from new news about January new home sales this morning.



http://www.youtube.com/watch?v=owfURRy-LuE&hl=en

How Does Refinance Home Mortgage Loans Work?

There are many people looking to refinance home mortgage loans all over the world. This is not something new at all. This is because there are several reasons why refinancing such loans can be advantageous. For starters, when you refinance your home mortgage loan, you can actually get rid of private mortgage insurance. You can also receive cash outs at closing, as well as obtain a fixed interest rate instead of a variable rate. These are just some of the reasons why a lot of people consider refinancing their home mortgage loans.

When you refinance your home loan, you actually need to get a new mortgage. You are then required to present to your mortgage company the pertinent documents needed for the processing of your application. The whole process of obtaining these documents can take a lot of time. This is why most people prefer the option of getting what are known as No Doc Mortgage Refinance loans.

Getting such a loan approved is easy, especially if you have good credit history. All the lender needs are your credit score and your social security information. Your credit report will be pulled to check on your credit score. If all is good in this end, then the lender can feel confident enough to grant you the loan without requiring the presentation of certain documents. But you still have to be wary since not all lenders give out No Doc Mortgage Refinance loans. Plus, your credit score has to be extremely high to make any lender confident enough to grant such a loan.

The great thing about getting a No Doc Mortgage Refinance loan is that you can keep your privacy. A lot of people are not comfortable sharing all sorts of information to their lending companies, but this cannot be helped because this is required. Lending companies need to know the employment status, the income earned, and other financial information about their applicants. With the No Doc Mortgage Refinance loan, borrowers can then do away with the disclosure of such information.

The main catch, however, is that with refinance home mortgage loans that require no documents actually come with higher interest rates. However, if you prefer the privacy that comes with No Doc Mortgage Refinance loans, then this becomes a small price to pay. Still, if you are considering getting a loan to avail of lower interest rates, then this type of loan will not work well for you at all. You should then check the other options available in the market.

Thursday Noon 02/18/10 Today's Current Mortgage Rate Alert News

Today's Current Mortgage Rate Alert News at Noon on Thursday, February 18, 2010, from www.ratealertnow.com. Provides a brief glimpse of what's affecting mortgage rates today in reaction to Wall Street market news and data releases plus what's coming up on the Free Mortgage Rates Update at 5PM and the impact on whether low rates will continue on home loans including home financing, home refinance and home purchase as well as other residential real estate refinancing of all fixed rate mortgages.



http://www.youtube.com/watch?v=6Xz8qndXJIk&hl=en

Home Loans for Immigrants with ITIN Mortgages

The mortgage industry has long been able to adapt to changing market conditions. When interest rates rose to double-digit levels in the late 1970's, the industry made more adjustable-rate mortgages available. When the savings rate began to drop and Americans had less to put down on homes, the industry made more flexible loan products available that did not require as large a down payment. And now, as immigrants begin to comprise a larger and larger portion of our population, the lending industry is begun to introduce loans that are tailored to an immigrant population that may not have solid credit histories or Social Security numbers.

These loans, known as ITIN loans, are offered to illegal immigrants that do not have a Social Security number. They can qualify for the loans by obtaining an Individual Taxpayer Identification number (ITIN) from the Internal Revenue Service. The IRS issues these numbers to people who are required to pay taxes but are ineligible for a Social Security number. The government uses these numbers for tax purposes only. A few small banks, as well as national banks Citibank and Wells Fargo, have started to issue loans to customers who have an ITIN but not a Social Security number. Most of these loans have been issued in California, but they will probably be available in other places soon.

The process of obtaining an ITIN loan is somewhat more complicated than that of applying for a conventional mortgage. Applicants with an ITIN usually have a credit history that is less well documented. As a result, the usual background work required issuing such a loan is more complicated and more time consuming than for a conventional mortgage. In addition, fees and interest rates will tend to be higher than for other types of loans in order to compensate lenders for the additional trouble and additional risk.

While there is plenty of opposition to lending money to people who are here illegally, few would argue that a neighborhood that consists of homeowners, rather than renters, is a better neighborhood for everyone. Owners are much more likely to take care of their property and show concern for the neighborhood as a whole than are renters. Thus, any lending plan which encourages people to buy, rather than rent, is good for everyone.

FHA Streamline Refinance without Appraisal

www.realpro.la FHA Streamline Refinancing without Appraisal and the borrower's closing costs. TheREALPRO for Windows program will accurately calculate these details for you, the real estate or mortgage loan professional, and your client. http The down payment, loan, total payment and closing costs are calculated, including the APR REALPRO is the only computer/software made exclusively for the Real Estate/Lending Industry to give you exact figures - anywhere you need them! Throw away your pencils, papers, calculators and charts!! REALPRO answers your client's financing questions in a matter of moments ... and prints them out, too! The REALPRO System is preprogrammed to calculate these important functions and is the best way of plugging into the information that keeps you at the cutting edge of the Real Estate/Lending Industry. Loan Rep Advantages Calling on Real Estate Offices * Prequalify borrowers in seconds whether in your office, the real estate office, or out in the field * Quote in print - any loan, FHA, VA, Conventional, whether fixed, adjustable or graduated payment - in seconds, along with a buyers cost sheet, without ever looking up a chart * Amortize your various loans when asked, without complicated charts * Prequalify homes for your real estate agents so they know what income to look for when holding an open house * Enhance your professional image so that agents have enough confidence in you to involve you in the transaction * Show the type of instant service ...



http://www.youtube.com/watch?v=DrxTraIQ08Q&hl=en