Aside from that, consumer spending has caused millions of unemployment, which led to homeowners’ inability to pay for their mortgages. Lending companies and banks have tightened lending procedures which even made things worse.

Banks have the option to lend money to their customers who wants to buy houses and other properties they desire. The amount of money they lend are controlled by mortgage rates and this usually varies based on the bank’s ability to lend money from the reserve bank. Nowadays, mortgage rates are depreciating because of economic instability. You might think that this is a bad thing, but what you must know is that this mortgage rate fluctuation can be used to your advantage.

Choosing the right kind of mortgage loan is key. When mortgage rates are low, you must apply for a fixed rate loan because this stabilizes your repayments for a certain period of time. This will save you a lot of money because you won’t have to increase your repayments if mortgage rates inflate.

You can also opt for a variable rate loan which allows you to change repayment values depending on existing mortgage rates. Apply for a variable rate mortgage loan when mortgage rates are high. Here, your repayments will depend both on interest and mortgage rates. Falling interest rates will result to a decreasing mortgage rate, and this will lower your loan repayments.

Choosing between fixed and variable rate loans will make you create a good financial save-up. You must also not forget to choose among different mortgage packages offered by different companies to check who among these can give you a more competitive deal. A loan broker can help you with this inquiry. Going for fixed-rate mortgages will be more beneficial for you in the long run.

Aside from the mortgage rate fluctuation, it’s also wise to check your credit score because this affects how much you pay for mortgage rates. Improve your credit rating before applying for a loan to qualify for better mortgage rates.

Finding your way through mortgage rates is easy if you are aware of the factors affecting it. To better help you out, consult with a mortgage loan broker to know what mortgage type is best for you. Save money, pay your bills, and improve your credit scores—these will help you qualify for a better mortgage rate.

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Well, the major reason why we close FHA loans the last week of the month, especially FHA Streamlines is because on FHA home loans, interest is calculated and paid on a monthly basis.  With conventional loans, interested is calculated and paid on a daily basis.

You see, if we were to streamline your current mortgage in the middle of the month and you have already paid all of your interest for the month up front, and then streamlines in the middle of the month, you would have to pay all of your interest again!  That is just no good.  We are trying to save you money, not have you spend anymore.

So, for anyone interested in a FHA Streamline, contact us and we will take your loan application, get your documents, get them to our amazing processor, find out what interest rate you are trying to get, once we can get your rate, we will lock the loan, and then we will close at the end of the month.  It is honestly as simple as that.

To get your steamline started or to find out what interest rates are, click here.

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I just got done helping a woman streamline their FHA home loan. It was a very easy loan and very beneficial for our client. When speaking with her about the possibility of a streamline refinance, she asked me a few questions that I though everyone considering this type of refinance would probably like to know.

The first thing that she asked me was “How would I know if an FHA Streamline be good for me?” That was an excellent question and one that we often get from our clients.

The answer is very simple! If you can reduce your interest rate by at least 1/2%, an FHA Streamline is for you! Most of the time, we can reduce it even more than 1/2%, but that is a good guideline to go by.

The next question that she asked me was about her interest rate and what it might be. Well, this gets a little harder to pin point, unlike traditional 30 year mortgages. There are a ton of factors that go into calculating an streamline interest rate.

• How long you have had your current loan
• What is the payoff amount
• If you want to skip some payments
• If you want to tie your closing costs into your loan

These are just a few of the major things that will influence your interest rate on a streamline refinance.

When speaking to clients who are interested in this kind of mortgage, I usually just tell them that it is wise to take the 1003 loan application, pull together their documentation, get everything to the processor, then all of us get on the phone and pound out exactly what YOU want from this loan. Then we can tweak things to get your rate down at least 1/2% or lower. Once we do that, we can lock in the rate and finalize things.

FHA Streamlines are very easy and fast to take care of and when you tie in your closing costs, you have nothing to lose, only gain by reducing your mortgage payment and increasing the amount of money you keep in your bank account.

To get started on your streamline, click here now!

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I just got done checking interest rates and they are the lowest that I have seen them in about four weeks so now is an excellent time to purchase a home!

It is also a great time to purchase because housing prices in Utah and all over the country have plummeted and they are the lowest they have been in the last 4-5 years.

For those of you who are looking at purchasing a home, I would highly recommend that you do it before the end of the year, December 31, 2008 because of the amazing tax credit that the government is offering first time home buyers or those individuals and families who haven’t owned a home for the last three years.

If you have the ability to qualify for a home, you need to take action now and reap the benefits that I have listed above and stated in the video.  Contact us now for the most current interest rates and to get your mortgage underway.

P.S. For those of you who are not from Utah, dispite the name of our website we can do your mortgage for you!!  So please keep that in mind when searching for your mortage lender.

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As a result of the banking liquidity crisis, banks have become afraid to lend to each other, and so LIBOR has risen independently of the Federal Funds Rate. The Fed is desperately trying to lower LIBOR so banks can get back to lending to each other but it is not working nearly as well as the government would like. Many believe that LIBOR will not get back down to matching the Federal Funds Rate until the financial markets stabilize and who knows how long that will be.

In the New York Times articles today there were two different writers with very different views on the drop LIBOR experienced yesterday. One of the writers believed that confidence among banks is way up after the bailout by the world governments and believes that the banks are slowly starting to feel more and more comfortable lending to each other. We saw Citi and JP Morgan Chase lend money to banks in Europe, which is a big step in the right direction. The other writer saw things differently. He believed that it was just a one-day thing. One day does not start a trend. He believes that things will continue to worsen and that our worst days are not behind us.

The reason LIBOR should matter to everyday people like you and me is simple. Most credit cards and adjustable rate mortgages are based on LIBOR. When LIBOR goes up, our rates also go up. Banks charge us an interest rate by adding LIBOR, the rate they are paying to get the money, plus the margin, the amount that they are making by lending us the money. So the rate we pay on adjustable interest rates are typically

LIBOR+Margin=Interest Rate. So banks are very nervous about lending to each other which is making it very difficult for consumers to obtain credit and when and if they do the rate they have to pay are often times higher than they are used to. There is a liquidity crisis which is causing a lot of the problems we are facing. Banks are having a very difficult time obtaining capital and therefore are unable and unwilling to lend to businesses and consumers. This is one of the main reasons we are currently in a recession.

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Each of these things are definitely within your control and you can do some things to help make you a more attractive mortgage candidate.

Repair Your Credit & Increase Your Credit Score
Your credit score says everything about you and your ability to repay a loan issued to you and do it on time very single month. People with lower credit scores, can definitely expect a much higher interest rate tacked to their home loans, if your score is below 650 you will have a VERY difficult time getting a mortgage loan, if at all! However, those with scores above 800 will have the lowest interest rates and have no problem getting a loan.

Get A Higher Paying Job Within The Same Industry
If you are having a hard time getting qualified for a loan because you don’t make enough money to pay for the home that you are interested in, you should should start hunting for new job that pays more. One thing you need to take note of, lenders like to see a long, stead history of employment, so if you want to be considered for the loan after the job change, it needs to be in the same line of work. If you need a little more nudging and encouragement about switching jobs, you can click here.

Save Your Money Like A Mad Man
It is no secret that the larger your down payment is, the smaller the loan amount will be. Not only that, but the lenders that are considering you will see you as a less risky borrower.

Don’t Ever Pay More For A Home Than The Appraised Value
This is pretty much a no brainer, since the bank or lender will not want to lend you any more money than the actual property is worth.

Reduce The Amount Of Debt That You Carry
Other than your credit score, debt is one of the biggest reasons why people cannot qualify for a home loan. There is no magic number as to how much debt you can carry in addition to your mortgage, but lenders will be much more likely to lend you more money, if you have more debt.

I hope you can take some of these things to heart if you are considering purchasing a home in the next few months. You need to play the game and play it well if you want win!

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I am a huge, I mean huge fan of FHA Streamline Refinance loans especially here in Utah.  They are the perfect solution for anyone who has an FHA home loan and looking to lower their interest rate and lower their monthly payment.  We took a few minutes to go over the guidelines (which are very few) and they were sold on the idea.  You see, this type of mortgage program offers many different benefits over other types of refinance loans. One thing that really impressed our client is the fact that they didn’t have to go home and sort through all of their financial info.  With an FHA Streamline, you need little or no documentation and it can pretty much be done the first time you come into the office.  They were also thrilled that they didn’t have to have their credit pulled and analyzed as most people who refinance have to do.  This lessens the time that you loan is in underwriting and it gets things moving along much quicker.

You need to know that just about anyone with an FHA home loan can get an FHA Streamline Refinance.  The only people who cannot qualify for an FHA Streamline are those who have been late on any of their mortgage payments.  If you live in Utah, have an FHA loan, want to lower your interest rate and monthly mortgage payment, an FHA Streamline Refinance is for you!  Click here to contact us and get your streamline started today!

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