Understanding Home Mortgage Loans
People mortgage homes every day, it's important to do your research before
applying for a mortgage loan though. By completing your research before
applying for your home mortgage loan can save you a lot of money over the
term loan.
What are some important things to look at when you are working out your
financing for your new home? Your interest rate and total payments on your
home mortgage are two to consider. Don't be one of those people that pay
more than they have to because you did not take the time to do a little
research before entering into a contract for your home mortgage.
We have the mortgage information that you need to know.
Let's look at the two types of home mortgages that are available to you. One
is a fixed rate mortgage which involves a fixed amount of payment of
principal and interest for the entire term of the loan. This means that
regardless of economic conditions, one has to pay a certain fixed amount of
money to the lender for each payment period.
And the other type of home mortgage is the adjustable rate mortgage. This is
a loan arrangement which allows your payment to be tied to economic
indicators such as those of the Fed funds market or to the prime rate. Some
of these adjustable rate mortgages are based upon the more volatile LIBOR
rate so you should be alert for this term. An adjustable rate mortgage with
no cap based upon LIBOR rates may reach much higher levels than you
anticipate at the time of your loan closing.
When people mortgage homes or realty, the interest rate payments can go up
or down depending on the performance of the entire economy when using an
adjustable rate mortgage. Understand that adjustable rate mortgages usually
start out with lower interest rates than fixed rate mortgages, however after
an initial period of a year or two the adjustments to rates can be extreme.
You must be aware of this and be prepared to pay much higher mortgage
payments when the rate adjusts. If not you could potentially put yourself in
a mess.
We have some critical home mortgage information to understand. When you
mortgage homes, the total interest paid will increase considerably for
longer term mortgages. The longer the term of your loan the more interest
payments you will make. When you factor in interest payments, you could be
amazed at how much your home or realty actually cost.
You must be paying attention to interest rate movements. If you think that
rates are going to go up, then you will probably be better off getting fixed
rate home mortgage. But if you think that rates are going to head down, then
consider an adjustable rate home mortgage to take advantage of that
movements. Then when you think that the bottom of the mortgage cycle is
being reached then refinance with a fixed rate mortgage.
When looking for a mortgage for your home, having a good sense of interest
rates and what their movements are can save one a lot of money. So don't
forget to ask lenders about the different loans and types of loans and be
sure to calculate how much you each would cost you. Then think about the
risks and potential of the interest rate moving and in what direction, then
choose the best loan.
Having good home mortgage information is the key to making sure you get the
right type of mortgage.
Pre-Foreclosures
A pre-foreclosure is a property whose owner has defaulted on the loan payments and whose lender has initiated the foreclosure procedure, usually starting with an official "Notice of Default" or “Lis Pendens” to the owner.
It’s the first stage of the legal procedure, and therefore the property still belongs to the owner. The owner can still sell the property. The length of the pre-foreclosure period depends on the type of foreclosure process mandated by state law and the applicable legal documents the borrower signed with the lender when the property was originally purchased. Each state has differing laws based on whether or not they are judicial or non-judicial based states.
You should find out what type of foreclosure procedures your state has and what the time period is between when the mortgage company files paperwork and when the house is no longer the owners to sell.
Some investors visit their county court house weekly to gather information about newly filed LisPendens or Noticed of Default. They put the information into a mailing list, and use it to mail postcards.
Postcards are mailed to the list at least 4 times… once every 2 weeks or so. The postcards sent are just like the samples shown below. Response rates are usually about 1% or less with this method, because most times people in pre-foreclosure are in denial about their situation.
If you need more information on where to find lists, or about the foreclosure laws and procedures in your state, check out these links.
- lienfax.com
- www.foreclosure.com
- www.realtytrac.com
Once you’ve developed your list then it’s a simple process of mailing to that list. A key to remember is that the card or letter you send is not nearly important as important as how many times you send it.
You MUST send your contact (card, letter) at least 3 times and preferably up to 7 times to receive the best response.
Keep your message and the overall look of your mailing the same so that the receiver knows that the 1st and 7th mailing is from YOU!
