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There are multiple schools of thought on this question and most of the time the answer will depend on the person buying the house. How much discipline does the buyer have with money? Do they need help making payments or are they able to make extra payments easily? There are lots of variables that are specific to each situation but here are some things to consider.

Would you rather have a bigger monthly payment for a shorter amount of time? With a 15 year mortgage you have to make big payments each month, no exceptions. If you buy a cheap enough house this could be easy for you. The biggest advantage is saving a ton of money on interest, the biggest disadvantage is the much larger payment that reduces your cash flow.

If you choose the 30 year mortgage and pay only the minimum each month you are looking at twice the purchase price of your home just in interest payments. Do you really want the bank to make that much money off of you? If you are able you should may additional payments in order to whack away at the total interest you’ll pay over the life of the loan.

Continue reading ‘Should You Have a 15 Year Or 30 Year Mortgage?’ »

Many people are finding themselves in financial difficulty trying to pay their mortgage and getting behind in their payments? lots of people find themselves defaulting on house payments each day and that number is going up all the time.

One of the reasons for this happening is because of the so called sub prime loans market. Over 70% of those loans are now expected to default due to the sudden jump in mortgage interest rates which then caused this collapse.

If you are in this situation you will find there is a federal government loan modification program aimed at helping people in this position and the aim of this program is going to help make sure that you aren’t falling behind on your house payments and help to keep your house out of foreclosure.

Continue reading ‘Government Loan Modification Bailout – Take Steps Now to Prevent Home Foreclosure Happening to You’ »

The Chase loan modification program is offered by JP Morgan Chase Bank. Chase bank offers loan modifications for those who are struggling under the impact of the present difficult economic crisis which grips them with the fear of losing their home. This plan will enable those seeking for a loan to get better interest rates and easier installments. For obtaining this loan modification, you will need to provide Chase with a complete understanding of your current financial situation with supportive documentation. The advisor, in turn, will scrutinize the documents provided by you and advise any further information required.

Upon satisfying all the document requirements, Chase will issue a letter to confirm the terms, next payment date, and payment amount and contribution, if any, from you. You will then be eligible for a loan modification, subject to you giving a signed modification agreement to Chase. The modification will be a helping hand in saving your home, as it will significantly reduce monthly mortgage payments. Continue reading ‘Mortgage Modification Tips – How to Obtain a Chase Bank Loan Modification’ »

It is important to keep your interest cost towards a home loan to a minimum by qualifying for the best interest rates. You would have to take certain steps related financial discipline to ensure you get the best bargain from the lender but do not forget to shop around for your home loan. Do not opt for the convenient route of applying for a home loan in the same bank wherein you have an account. Just go around and compare the price of the home loan which is the interest rate charged to you. Consider it just like any other shopping you do and look around to get the best deal. There are a few simple and easy to implement steps that would go along way in helping you get the best interest rates.

Work in improving your credit score: Your exercise towards improving your credit score should start the day you Continue reading ‘Qualifying For the Best Mortgage Rates’ »

A lot of homeowners are having problems making their monthly mortgage payments, and worse of all, are not sure how to get a mortgage modification. Many homeowners wish they could lower their monthly payments and modify their existing home loan. However, a lot of people are hesitant to approach their lender with such a request thinking they will not be responsive. Here are some tips to getting a mortgage modification:

Start by figuring out how much your total income and debts are from all sources. This can start you on the path to creating a good budget. Plan this budget around the expected mortgage modification, with lower payments and new interest rates. This will help you prove to the lender or bank you are capable of budgeting and have a plan should you get approved. This also shows dedication and a commitment to saving your home, which may be Continue reading ‘Mortgage Modification Advice, Tips, and Help For Homeowners’ »

Recently, the governor of California, Arnold Schwarzenegger, signed the Assembly Bill 329 into law. This law contains many statutes which serve to protect seniors entering into a reverse mortgage. Commonly referred to as the Elder Protection Act of 2009, this law serves as an additional protection for seniors in order to ensure that they understand the reverse mortgage process and are entering into the agreement willingly.

One important safeguard that this law institutes is that the client receives an “Important Notice to Reverse Mortgage Loan Applicants.” This notice must be in 16-point type and emphasizes the complexity of the financial transaction. Basically, this statement discloses that a reverse mortgage is a loan against the equity in their home and that the applicant will be required to sign binding legal documents. This notice must be given to an applicant before attending loan counseling. Continue reading ‘California – Leading the Way in Reverse Mortgage Protections’ »