If you should find yourself unable to work if due to long term illness, having an accident which incapacitated you or becoming unemployed, there is no doubt that you would suffer financially and that is why cheap mortgage cover proves invaluable. Finding the money to continue meeting your repayments each month for your mortgage could leave you struggling. The little money you had saved would soon disappear and an already stressful situation would be made worse. Relying on the State could be a big mistake, as the help they do offer if you qualify for it, is often not enough to cover your mortgage repayments. Even if you do qualify you will have to wait until you have been incapable of working for months before you can claim.

Mortgage payment protection insurance can work out better providing you have checked the terms and conditions. There are certain reasons why an individual might not be eligible for a policy but a standalone provider will give you the information needed to determine this. It is the exclusions which can stop cover working for you. For instance if you only work part time, suffer an ongoing illness, are of retirement age or are classed as self-employed then you would have to think twice before taking out a policy.

For those individuals who could benefit from taking out protection then getting quotes for cheap mortgage cover is essential. A policy can be taken at the same time as taking the borrowing but usually this will cost a lot more and can in fact almost double the amount you are paying on a loan. The cheapest premiums can be found with those who sell payment protection independently. Another bonus with buying your payment protection this way is that you will get the vital information needed so you can match you circumstances against the exclusions.

It is the exclusions that cause the majority of problems that have been associated with payment protection, or rather the lack of information given regarding them. In 2005 the Office of Fair Trading received a super complaint from the Citizens Advice. This sparked a huge and still ongoing investigation into the sector which has resulted in several firms receiving fines. One of the latest was a mortgage firm whose Chief Executive also received a personal fine. This has done nothing to reinstate the faith lost in those selling protection cover but buying from a specialist provider is safer.

An independent provider will back up the cheap mortgage cover they sell with experience in selling protection products. They are more ethical than the high street lenders and usually put the consumer ahead of huge profits. High street lenders on the other hand only sell cover alongside other products they sell such as a loan or credit card and very often those selling cover have had very little training in selling payment protection products. A quality policy would provide for you between 31 and 90 days of being incapacitated and continue for between 12 and 24 months if you should need it.

Simon Burgess
http://www.articlesbase.com/finance-articles/cheap-mortgage-cover-could-save-your-home-if-you-become-unable-to-work-316617.html

For many people, taking out a mortgage is quite possibly the single largest financial transaction they will ever be a part of. It is easy to understand how accepting the responsibility to pay back a loan of hundreds of thousands of dollars can be quite intimidating! It is not unusual for many would be first time home buyers to just simply avoid the whole process and continue renting a home or an apartment instead of purchasing their own home. Luckily, in most cases, this fear is the only thing keeping them from owning their own home. If this sounds like you, I have great news! You could be just weeks away from home ownership!

With just a little bit of information, knowledge, and guidance, even the most timid would be home buyer can be well on their way to overcoming any fear and on the road to making a home purchase.

In order to obtain a mortgage you will need to prove two things. The first is your credit worthiness; the second is your ability to repay the loan. The better your credit, the easier the process will be. However, even if you think you have bad you could be pleasantly surprised at what you can qualify for.

If you can, avoid making any large purchases until after you obtain your new mortgage. You want to keep your monthly debt obligations as low as possible and be able to demonstrate to a potential lender that you have the ability to cover your current obligations (car loans, credit cards, etc.) as well as your new mortgage payment.

Obtain a copy of your credit report and review it for inaccuracies. Look for information that doesn’t belong to you is incorrect, or that is older than seven years of age. If you find any of these items, dispute them with the credit reporting bureaus. When you obtain your credit report, the information needed to dispute errors should be included with the report. Also, don’t be afraid to speak with a mortgage professional right away. They can help you determine things you can do to improve your credit situation in the eyes of a lender.

Paying down debt is also a good idea if you can afford to do so. However, lenders like to see that you can manage debt, so don’t be afraid to keep small balances on your credit cards. Many feel that utilizing up to 30% of your available credit is the optimum amount. For example, if you have a credit card with a $10,000 limit, you should have a balance of $3,000 or less. Also, don’t close out old credit cards. Having old credit cards with zero balances demonstrates that you have the ability to have credit and not use it. Also, lenders and credit agencies like to see long established accounts.

Avoid changing jobs as you near the time to apply for a new mortgage. If you do change jobs, try to stay in the same field or line of work. Lenders like to see two years of work history in the same field. Also, if you’re planning on purchasing a home in a new area or state and then relocating and finding a new job, you will need to line up your new job up first before purchasing your new home. It isn’t hard to understand why a lender will not lend to a person who doesn’t have a job yet! The exception to this rule is if you have just obtained a new degree or certification. Time spend in college can count as “job history” once you have lined up employment.

While it is possible to obtain 100% financing and purchase a home with zero down, being able to put money into the purchase will help you obtain the lowest interest rates and best loan terms. The better your credit, the less lenders will require you to put down. With a credit score of 600, you have a good chance of qualifying for 100% financing. Below 600, you will need a minimum of 5% and as much as 20% of the purchase price for a down payment. Separate from the actual purchase price of the home, you will need between 2% and 5% to cover closing costs associated with the purchase.

In general, you will need to provide some or all of the following documents once you apply for a mortgage. Two months of bank statements or investment statements showing the money you plan to use for a down payment and for closing costs. Your most recent pay stub and W2 or tax returns to prove your employment and income. For those who are self employed, you will need to provide a business license or professional license. If applicable, you will need to provide copies of divorce paperwork as well. If you have already made an offer on a property, you will need to provide a copy of the purchase contract and receipts for any down payments or deposits you have already made.

Additionally, your broker or lender will provide you with an authorization form that you will need to sign granting them permission to examine and validate your credit and employment information.

The above should be taken as a general overview of what you can expect when applying for your first mortgage. With that being said, it is important that you understand that every single mortgage transaction is unique. If you are about to enter the process or are just wondering where you stand when it comes to qualifying, your first step should be contacting a mortgage professional. Don’t feel ashamed or embarrassed if your financial past has some issues or hiccups that you would rather forget. We’re all human and things happen.

Find a mortgage professional that you are comfortable working with. Don’t work with anyone who makes you feel pressured or rushed. It should not be necessary for a lender or broker to pull your credit or take a deposit from you before they will agree to even speak with you about your situation. These are frequently just sales tactics to make you feel like you are tied into dealing only with them. Don’t be afraid to walk away from anyone you don’t feel comfortable with. Be honest with whoever you choose to speak with. If you don’t provide them with accurate information, they won’t be able to give you accurate advice. Also, if you don’t understand something, don’t be afraid to ask questions.

Now that you have some information on the mortgage process, your next step is taking action! Contact a mortgage professional today and find out exactly where you stand and put together a plan to get you moving! Regardless of your situation, odds are you are between 30 days and 2 years from owing your own home if you start now!

Joe Ramirez
http://www.articlesbase.com/non-fiction-articles/taking-out-a-mortgage-what-to-expect-when-applying-for-your-first-mortgage-101918.html

It had been a particularly daunting day as a new trainee customer service representative of a company with a bad product and lots of vocal complaints. Many asked to talk to the supervisor and after the turn over, the supervisor chided Lucile about being stronger on the phone. Lucille Marie collected a stow of cash she had set aside at home so that she could stop after work and get a cake, party favors, gift and food for her five year old daughter’s birthday celebration with ten invited guests. With this all flashing through Lucile Marie she said out loud “Hell No!” and stomped on the assailant’s foot with her left high heel. Simultaneously, she and spun while striking with her left elbow catching the would be thief in the face to free herself but then felt a sharp pain in her left side stomach area. She began screaming at the top of her lungs and her attacker fled and limped away without her purse. Lucille Marie grabbed her side with the realization that she had been stabbed and had a lot of blood covering her clothes and hands. A passerby had heard the blood curdling screams and rushed over to see what was going on. Lucile Marie told him what had happened and that she needed immediate attention. Using his cell phone he called 911 and soon the police and an ambulance arrived. The attack had lasted all of 15 seconds.

Rushing by ambulance to a hospital the paramedics had stabilized the bleeding through temporary compression but surgery would be needed. Lucille Marie was awake and inquired where she was being taken. The paramedics mentioned that they were taking her to a nearby hospital. Lucille Marie shared that due to her short term on her new job she had no insurance and needed to go to the County Hospital. The ambulance made a U-turn and headed for the other hospital. Reality raises its head. This took another 10 minutes to arrive at the County Hospital, which would take in “indigent” care patients with taxpayer support. Going right into emergency surgery, Lucille Marie was operated on to repair the knife wound, which missed a lot of vital areas. Lucille Marie spent two hours in recovery stitches and sutures on her left side and tubes and such coming out from under the sheet. Lucille Marie was admitted to a two-bed hospital room for treatment, monitoring and care. Lucile Marie, still a little groggy, was able to get her hands on a phone and speak with her daughter. Her daughter told her, sans cake, she was coming to the hospital with group to see her. A tear welled up in her eye. This was not the birthday party Lucile Marie had envisioned for her daughter. Before the daughter, Tammy, arrived the police took a statement and a description of the assailant and filed a police report. The police shared that resisting an attack can lead to such an injury. It was also discussed that there had been a man who was working the area using strong-armed robbery tactics and they were diligently looking to capture this dude. This was the first life threatening assault among all the victims. The police emphasized it was important to get this perpetrator off the streets and soon.

Several months had now passed. Lucille Marie was back working after missing a week of work and was learning all the nuances of the customer service business with the daily interactions with her supervisor. She was getting better at handling the calls without intervention. Management was now more willing to settle issues with cash rebates and credit which made the job a lot easier while offering a much-improved product.

As Lucile Marie checked her mailbox after work, she had a stack of letters with medical related notations on the return address. Lucille Marie knew the shoe was going to drop. She was very surprised that it took this long. Slowly opening each one and carefully stacking up the hospital medical bills all centered on the knife attack; Lucille Marie put her head down and sighed. Using a small calculator, the bills were totaled and it came up to just under $24,000.00. From the $500 ambulance ride to $5.00 bandages. It was overwhelming.

The phone started ringing with collection calls two weeks later. The stress was rising on a daily basis. It was bad enough to get stabbed and lose work, but now this with a mountain of medical bills was almost too much for Lucille Marie to handle. Before the stabbing, Lucille Marie had been attending home buying seminars offered by the local Community Development program. She had been working on some credit issues to raise her credit scores to qualify for a First Time Homebuyer Program which would involve getting a push for closing costs and down payment. The new job was thought to be a continuation of the same line of work so that her new employment would qualify her for the loan. She had been getting close to owning her own home. Lucille Marie had been avoiding the phone with all the “gut” calls coming in from collection agencies but this time as she was listening to her answering machine it was Gail from Community Development following up to check progress on her quest to buy a home. Lucille Marie shared her recent story with Gail. Gail asked if a police report had been filed. Lucille Marie told that it had and she had a copy of it. Gail asked if she could bring in the police report and all the outstanding medical bills. Gail was well acquainted with all the ins and outs of credit matters. Many of her applicants had to deal with credit challenges by getting them handled by paying in full or settling for less than owned before qualifying for a mortgage loan. Gail was on a first name basis with one of the local credit bureaus that acted for one of the big three credit reporting agencies. Sue hearing Gail’s shared story mentioned the existence of the Special Violent Crime Victim’s Recovery Fund, which would pay up to $25,000.00 for losses. A few states have this program while many do not. The paper work alone is daunting for the average citizen. It takes a lot of time and effort to even cut through the maze. Fortunately, Sue was keenly aware of all the shortcuts necessary to successfully file an application and it proved yet another way to collect money for the credit bureau’s clients. Armed with the police report of the stabbing and all the owed bills Sue filed the required application and completed all the paper work.

It took about 45 days, but Sue was successful in getting an award sufficient to pay all the medical bills and not only that, she negotiated the expunging the entire collection record as if it never happened. Lucille Marie’s credit record was made whole again. The collection calls stopped and they were looking at houses to buy with Gail’s help and counsel. The Realtor negotiated an affordable home with the seller paying most of the closing cost and prepaids with Community Development contributing a $15,000 second mortgage with low interest only payments which would be forgiven if Lucille Marie stayed in the home for five years. It was a life interrupted but now was back on track. Tammy’s next birthday party gave Lucille Marie an opportunity to celebrate life and for a moment think about what happened to change her life in fifteen seconds. Tammy’s birthday would always have a double meaning. Lucille Marie felt blessed.

A week later, Lucille Marie received a call from the officer who had taken the police report of her stabbing indicating at long last they had stopped the perpetrator in yet another in progress strong arm robbery attempt. In this instance, an undercover cop returned fire and shot him dead when he resisted arrest while holding a pistol. It seemed he had moved up to a more lethal weapon while trying to support a big drug habit. He had a long prison record and had violated parole. Lucille Marie considered herself lucky once again and blessed at the same time as she peered out the window of her new home. Tammy was close by and she received an unexpected hug from her mom.

Dale Rogers

http://www.brokencredit.com

http://www.sellerhelpsbuyer.com

Dale Rogers
http://www.articlesbase.com/credit-articles/violent-crime-on-innocent-victimsadds-to-the-victims-woeswith-mountains-of-unpaid-medical-bills-and-bad-credit-106065.html

Acceleration – This refers to a lender’s right to request immediate payment of the balance of the loan when the borrower defaults or by using a stipulation from a Due on Sale Clause

ARM / Adjustable Rate Mortgage – A mortgage that has an interest rate that is periodically adjusted. This adjustment is based off of criteria from an agreed upon index and is also called a variable rate mortgage.

Amortization – Mortgage split into periodic, equally sized payments so that at the end of the agreed upon mortgage period the balance is paid.

APR / Annual Percentage Rate – Expression of the yearly rate of the mortgage measured by mortgage’s full cost including all expenses and fees.

Appraisal – A documented official estimation of a property’s value.

Assessment – Tax on a property that serves a specific purpose, like sewers for example.

Assumption – The agreement between a buyer and a seller in which the buyer is taking over payments from the seller on the seller’s existing mortgage.

Balloon Mortgage – This is a loan whose amortization schedule exceeds the length of the mortgage. A final (often large) balloon payment is paid at the end of this end of this extended period of time.

Bridge Loan – A secondary trust used for collateral by the homebuyer’s present property, which permits proceeds to be utilized to close on a new property purchase before the existing one is sold.

Buy Down – A buy down occurs when a lender allows a mortgage rate to be lowered by buyer subsidization.

Caps – Safeguards that set limits on the amount of interest rate or payment change on a monthly basis for ARM’s

Change Frequency – The increment of the number of months that a rate may change in an ARM

Closing – The closing is the final meeting that occurs involving the property buyer, the seller, and the lender during which all legally binding papers are signed and the property purchase deal is “closed” and property ownership is transferred.

Closing Costs – The expenses and fees incurred either by a home buyer or seller at a closing for a variety of tasks, charges, insurances, etc.

Conversion Clause – ARM provision for having the mortgage’s rate be converted to a fixed-rate at some point during the life of the loan.

Credit Report – Official documentation noting the status and history of a potential buyer/borrower.

Default – In a nutshell, not making a payment on time; legally failing to provide required payment to lender by specified deadline.

Down Payment – The money paid during a property purchase that fills the gap between sale price and moneys borrowed.

Equity – The amount left over when comparing money owed on a property to the property’s current value.

Escrow – An escrow account is held by the lending institution in which the borrower pays money for insurance or tax reasons. Escrow describes the deposits that are held when a loan is pending closing.

Escrow Payment – The part of a borrowers monthly mortgage payment that the lender holds to pay for insurance, lease, or tax purposes.

Fannie Mae – Federal National Mortgage Association; a government backed organization that buys and sells residential mortgages.

Freddie Mac – Federal Home Loan Mortgage Corporation; a government backed organization that acquires mortgages from various depositary institutions and HUD-approved lenders.

FHA Loan – A loan that the Federal Housing Administration insures, open to any home buyer that meets certain requirements.

Fixed Installment – The regular monthly payment that is due on a mortgage.

Fixed Rate Mortgage – A mortgage loan whose interest rate will not change for the entire duration of the loan.

Foreclosure – Process by which a mortgage lender legally repossesses and forces the sale of a mortgaged property as a result of the borrow defaulting.

GPM / Graduated Payment Mortgage – Flexible mortgage payment plan in which the borrower’s monthly payments increase for a specific timeframe.

GEM / Growing Equity Mortgage – Mortgage in which the borrower’s payments increase over a set period of time; this larger amount is then applied to the mortgage’s principal in most cases.

Hazard Insurance – Insurance used for protection against various forms of property damage and/or loss.

HUD-1 Statement – This is a document provided by your lender/broker that includes a detailed listing of the moneys needed at closing, including points, escrow, commissions, and other fees.

Impound / Reserves – The amount of the buyer’s monthly payment kept by the lender to pay for various insurances or taxes.

Index – The publicly available market interest rate used by lenders to determine the difference between ARM rates and current interest rates and to set loan sale rates on fixed rate mortgages.

Interest – Monetary fee charged by a lender to a buyer for borrowing money.

Interest Rate Ceiling – The agreed largest possible interest rate for an adjustable rate mortgage.

Interest Rate Floor – The agreed lowest possible interest rate for an adjustable rate mortgage.

Interim Financing – A short-term or temporary loan made while property construction is being completed.

Jumbo Loan – A mortgage that exceeds the limits set by Fannie Mae and Freddie Mac.

Liabilities – The debt owed by a buyer.

Lien – A claim made on a piece of property for exacting payment of a financial obligation.

Lock – Mortgage lender’s written guarantee that the quoted rate is good for a set period of days from the time of issuing.

Margin – The total that a mortgage lender adds to the index on an ARM to set the adjusted rate.

Market Value – The price that a buyer and seller would agree upon for sale of a property.

Maturity – The date that a loan’s principal is scheduled to be paid in full.

Mortgage – Document pledging a property to a loan provider as security for a debt’s payment.

Mortgage Broker – One who receives compensation for the work of bringing a buyer to a lender for the purpose of completing a loan arrangement.

Mortgage Insurance – Money paid on a regular basis for the purpose of insuring a mortgage on a property whose buyer has less than 20% equity.

Note – A document specifying that a borrower is to repay a loan at a specific interest rate over a specific period of time.

One Year Adjustable Rate Mortgage / One Year ARM – Loan in which the interest rate changes on a yearly basis.

Origination Fee – Fee charged by a lender for the work involved in preparing a loan.

Owner Financing – Property sale in which the seller provides at least some part of the buyer’s financing.

Payment Change Date – Date when a new payment amount begins on an ARM or GPM.

PITI – Principal, Interest, Taxes, and Insurance

Points / Loan Discount Points – Interest money paid at closings for the purpose lowering the cost of monthly loan payments. One Point is equal to one percent of the loan’s total amount.

Power Of Attorney – The legal authorization of one person being able to act in behalf of another.

Preapproval – The process of evaluation a potential buyer goes through to decide how much money a loan can be given to them for.

Prepayment – Mortgage stipulation permitting the borrower to make additional payments before the maturation date.

Prepayment Penalty – Fee charged by a lender to a borrower when the borrower repays the a loan earlier than an agreed upon date.

Principal – On a loan, the total amount that remains unpaid by the borrower. On a monthly payment, the amount that goes towards the final paying of the loan.

PMI / Private Mortgage Insurance – Insurance that a buyer must pay for; required when a borrower does not provide a 20% down payment on purchase of a new property.

Rate Lock – Commitment given by a lending institution to a buyer that guarantees a certain interest rate is valid for closing for a specified period of time.

Real Estate Agent – A person that is licensed to negotiate the sale of property.

Recission – The cancellation of an agreement or contract; the law giving a homeowner 3 business days to cancel a loan arrangement. “Right of Recission”
Refinancing – The obtainment of a new replacement mortgage on a property that is already mortgaged.

Satisfaction of Mortgage – Document issued to a borrower on the occasion of their repayment of said loan.

Second Mortgage – The acquirement of an additional, subordinate mortgage on a property that is already mortgaged.

Servicing – All the work involved to keep a mortgage in good standing such as paying various tax, insurance, and other costs.

Shared Appreciation mortgage – A mortgage in which the buyer receives a property for less than current market value; in exchange, the seller is granted a portion of future property appreciation values.

Simple Interest – Interest calculated only on the balance owed.

Step Rate Mortgage – A loan in which the interest rate increases based on a set schedule until a set point, after which the rate remains constant.

Title – The document declaring a property’s ownership.

Title Insurance – Insurance policy that insures a potential home buyer or lender against errors in a title search.

Title Search – A legal examination of records to determine who is the rightful owner of a property.

Truth in Lending – Federal law that requires the lenders to disclose the APR to a buyer after applying for a loan.

Underwriting – The decision made by a lender on whether or not to provide a loan to a borrower based on their qualifications.

Aaron Crawford
http://www.articlesbase.com/non-fiction-articles/common-mortgage-terminology-explained-82977.html

p://i.ytimg.com/vi/-aPPGZUCZQg/0.jpg” align=”left”/>online mortgage rate calculator

http://onlinemortgageratecalculator.blogspot.in/

we provide information about home mortgage refinancing loans online apply with rate of interest mortgage calculators.Typically home refinancing is done when you have a mortgage on your home and apply for a second loan to pay off the first one.

Visit the website for full information
http://onlinemortgageratecalculator.blogspot.in/

Duration : 0:1:20

(more…)

Technorati Tags: calculator, mortgage, online, rate