Mortgage terminology that everyone should know

When you are searching for or reading through any mortgage, there are some terms that are vitally important to how you perceive the paperwork. If you aren't familiar with all of the terms, then you might misunderstand what the document is saying and agree to something that you might not mean to. Here are some of the basic terms that you should understand before you sign anything: 1. Creditor – this is the party who is selling, or who holds the current deed to the property that you are buying. They legally own the property and have the legal right to sell it, or secure it by a mortgage. This is usually the mortgage company, bank, or other lending institution. The creditor is also listed as the “mortgagee” or “lender” in some cases. 2. Debtor – this is the party who is buying the property. If you are looking to purchase the property, then the debtor is you. This party must ensure that they are able to repay the mortgage to the creditor before the creditor will sign the mortgage. 3. Conveyance – this is the term for the legal exchange of the property from the creditor to the debtor. 4. Hypothecation – this is just a fancy term for the debt that is incurred by the mortgage. This is what the debtor has when they sign the mortgage and turn over the money to the seller of the property. 5. Redemption – this is when the mortgage, or debt, is paid in full. 6. Mortgage by demise – this is when the creditor assumes ownership of the property until the debt is paid in full. This form of mortgage was widely used in the past, but is seldom used today, and is even outlawed in some countries. 7. Mortgage by legal charge – this is the basic type of mortgage that is available to day. In this case, the debtor (or buyer) is legally the owner of the property, but the creditor retains enough rights over the property to ensure that they will be paid. There are many more mortgage terms that you should be familiar with when searching for a mortgage. You should make sure that you are aware of other terms that you might need to know before you head into a mortgage broker's office to sign any paperwork. Hopefully these terms help to give you a little more of an idea of what you are signing when you do make it to that part in the process.

Bad credit mortgages

So you've gotten a little behind on your credit card payments. Ok, you've been late on your car a few times too. And, there are some other issues on your credit that makes it less than perfect. No matter if you've lost your job, had medical problems, or any other reason, you're credit score doesn't care. But, just because your score is a little lower than most peoples, don't worry. There is always a lender out there who is willing to help you find a mortgage so you can own your own home. Don't fret if you have been turned down by traditional lenders for a home loan. All you need to do is to search a little more for a lender who specializes in mortgages for people who have less than perfect credit. One easy way to do this is on the Internet. Just make sure that you put 'imperfect credit' in the search box and you will come up with thousands of companies who are just waiting to offer you that mortgage for a home of your own. The companies who specialize in bad credit mortgages are usually trained in how to help people gain a mortgage with those blemishes. You might have to pay up some of your past due bills, or pay off some of the smaller ones, before they can lend you the money, but rest assured, they will always try their hardest to get you a good rate on a mortgage. Their brokers and advisors will always know the best way to get you financed and the best rates that they can get for you. Not only can these mortgage companies help to get you into a home of your own, they can also help you to repair your credit. By opening a new mortgage, you will start a whole new line of credit that can boost your credit score tremendously. Make sure that you pay your payments on time, and you will see your credit score rise a bit more each month or so. This can help you on getting a new car, applying for a credit card, and in many other areas of your life – it can even help you get a lower rate on your insurance! So, no matter how low your credit score is, you can always search a little bit and find a mortgage lender that is willing to work with and help you find a mortgage to get you into a home. Before you start searching for a mortgage, it is always a good idea to know what your credit score is. This will help you in your search for the right mortgage company for you, and help the mortgage company to know just where to start on finding you the right loan. Just don't get discouraged when you see your credit score and start to think that no one can help you. There is always a mortgage broker out there who can work miracles!

Top 5 mistakes people make when refinancing their home

: 1. Choosing a home loan lender for the wrong reason (i. e., the lowest rate, your existing lender.) People choose home loan lenders for all the wrong reasons. Getting a low rate is important, but it's not the only consideration. Lenders may offer the lowest rate but charge extra fees (loan fees, origination fees, copy fees) so that in the end you will pay more for the refinanced home loan even though your rate may be lower. The only way to protect yourself is to wait for the Good-Faith Estimate (GFE) which should list all the closing costspare the GFE's from a number of home loan lenders. But comparing GFE's is not the only story when you want to refinance your home. If time is important, you want to choose a mortgage company that is capable of acting quickly. Ask each company to give you their average closing time for loans similar to yours. Ask around among your trusted friends. Find out who refinanced lately and ask them what they thought of the company. Do not assume that your existing home loan lender is any better than a new lender. Since most home loans are sold in the secondary market, everyone has to meet certain criteria, and your existing lender will probably require the same documentation as a new lender. However, once you have a commitment from a new lender, it does not hurt to ask your existing lender to beat it. Often times they will. We will get you the best rate available. 2. Not getting everything in writing about refinancing your home loan. Get everything in writing. No matter what the Loan Officer tells you, ask him to confirm it in writing. Do not believe someone when they tell you that your refinance rate is guaranteed. Get it in writing. 3. Not knowing the appraised value of your home. Many people go ahead and try to refinance their home without knowing the true value. There are many places you can get an estimate of the true value of your home for purposes of refinancing. Many realtor sites have home value estimators on their site. For the price of listening to a mortgage company try to sell you a mortgage, you can get an approximate value for your home. Check the recent sales in your neighborhood and try to find a comparable house in a comparable location. Or you can ask the appraiser to do a drive by and give you a verbal estimate of the value of your home. If it is in the right ballpark, you can order a thorough appraisal. Know the value of your home before you seek to refinance your home loan. 4. Not doing the math when refinancing your home loan. Do the math. Refinancing your home has a cost. You need to see what the cost is, and then determine how long you are going to stay in your home. For example, if you are going to stay in your home for 5 more years, and the cost of refinancing your home is $5000, you need to save at least $1000 a year in order for the deal to make sense. If you only save $50 a month as a result of refinancing (that is $600 a year), you will be losing money. 5. Not considering a 2nd Mortgage. When you refinance your home, you are refinancing the total amount. Suppose you have a home that is now worth $400,000, and you only owe $250,000 on the home and you want to take out $50,000. If you refinance and take out $50,000 in cash your new loan may be for $310,000, ($250,000 owed + $50,000 cash out + a total refinance cost of 3% or $10,000). It may be better to take out a 2nd mortgage for $50,000 and pay a slightly higher interest rate and slightly higher points, but only have a basis of $50,000 instead of the $310,000. For more information, please visit Peak Home Loans-We Get 4 Out Of 5 Applicants Approved-24 Hour Results-Learn The Ins & Outs-Apply Now For Bad Credit Refinance Thank you...