Friday, September 30, 2011

Home Loan Modification Hardship Letter Sample

When applying for a loan modification you will be required to provide the lender with a hardship letter. This can be the hardest part for a homeowner because many are not sure what to write and some become overwhelmed.

Here will be a sample of a hardship letter that will explain the basic feel that should be used in the letter. Provided is a sample hardship letter along with instructions for what one should bring up in their own letter. The lender needs this letter to see if you qualify for the loan, everyone's letter will be different with different reasons as to why they need a loan modification, in order for the lender to take your situation seriously you must also tell your story.

Home Refinance Rates

Account number: [Your loan number]

[The name your loan is under, usually your own.]

[Your residential address, which is also the address you are requesting loan modification on. Loan modifications are not allowed for properties that are not lived in.]

[Your phone number and email]

To Whom It May Concern: (Or the persons name if you know it.)

[Explain the reason for the loan modification in the hardship letter.] The reason for this letter is to explain the reason I/we have fallen behind on the mortgage payments. I am requesting that you work with us/me on a loan modification. I/we have come across some hard times that are making everything a struggle. I/we would like to work out a plan with you and possibly work out different terms on the mortgage so we can stay in our home.

[Keep the explanation of the reasons short and to the point. Try to limit it to about one paragraph.] I lost my job a few months back and have not be able to find anything that pays enough to pay all of my bills or other expenses. I had some savings that I have been using to try to stay afloat but that is now gone. I have however found a position that pays well enough to get back on my feet and am scheduled to begin working in a few days. My spouse, who pays half of our monthly expenses, has fallen ill with X and can no longer work because of the medical treatment. Fortunately the doctors expect a full recovery within 6 months. Although it is great that my spouse will recover, the medical treatment being used is expensive and we can not afford to pay our other expenses along with the medical treatment.

[Explain your come back plan.] After doing the math I have come to the conclusion that with my new position I will be able to pay monthly expenses including the mortgage payment of $X. As soon as my spouse recovers from her illness we will be financially stable again however until that day comes we will be a little strapped for money. If possible we are requesting [Ask for exactly the loan modification agreement you feel you can handle and they will approve of]

Thank you for you patience and time. Thank you for looking over my situation and considering the home loan modification plan that will help us get back on our feet.

Sincerely,

[Signature]

What we have written above is just a sample letter, make sure you remember this. When writing a hardship letter for a home loan modification it is a good idea to go a little deeper into your story but make sure not to make it into a tear jerker. While you may feel that if you pull some heart strings you will have a better chance of being approved, however the reality is the lenders don't want to hear it. The lenders are just trying to determine if you are at risk of defaulting again.

Home Loan Modification Hardship Letter Sample

Thursday, September 29, 2011

Mortgage Interest Rates - A Look at the Last 10 Years of Refinancing

Ten years ago, prospective home-buyers and existing homeowners looking to refinance were positively giddy about the interest rates. Hovering around 8%, the rates were a refreshing change from the double-digits of the 1980s. Who could have guessed that now, in 2006, even with interest rates on the rise, we are a far cry from the "high" interest rates of the late '90s.

With the exception of a spike in 2000, the last several years have seen historically low interest rates. Under the direction of Alan Greenspan, the Federal Reserve Board lowered rates from 2001 through 2005. According to Interest Dot Com, the rate of 5.2% in June 2003 was the lowest rate recorded since their print predecessors began weekly rate surveys in 1985. These low rates enabled many Americans, who previously could not afford to do so, to buy homes. They also led many existing homeowners to refinance their mortgages and cash-out a portion of their home equity for home improvements or other goods and services. As stated by the Homeownership Alliance, the housing sector has been "a pillar of strength for the U.S. economy in recent years, limiting the depth of the 2001 recession."

Home Refinance Rates

This is true even with rates slowly on the rise. Since October 2005, rates have not dipped below 6% and the current rate is 6.66% for a 30 year fixed mortgage. The rates on adjustable rate mortgages are rising more slowly, thus providing an attractive option for those beginning to think about refinancing or taking out a home equity loan or line of credit.

What is the outlook for the future? Some experts say that the increases will slow, while others disagree, saying that rates will continue to rise. It seems we'll just have to wait and see.

Mortgage Interest Rates - A Look at the Last 10 Years of Refinancing

Wednesday, September 28, 2011

Second Mortgage - Home Equity Vs Refinance

Why should you take out a second mortgage or a home equity line of credit instead of refinancing?

Well...You Shouldn't!

Home Refinance Rates

Why Not?

1. Second Mortgages usually have an interest rant that is twice or even three times as high as your first mortgage rate. You can refinance instead and keep a very low rate. In the long run a second mortgage will just cost you money in interest charges.

2. Home equity lines of credit are designed for mortgage account executives (salespeople) to sell you on using it like a credit card attached to your home. They will try to convince you to use it over and over again.

3. A refinance loan is better for the equity in your home. Very few companies will refinance your home at 100% of it's value without forcing you to take out a second mortgage. You don't want to use 100% of your equity because that means you no longer have that equity to fall back on in emergency situations.

4. Second Mortgages and Home Equity lines of credit are designed to provide account executives (salespeople) with another tool to sway you into putting another commission in their pocket.

5. Your equity is a precious thing and should not be used for unnecessary add ons or impulse buys. If you don't need it and there is even a slight chance you can't afford it, then don't get a second mortgage to buy it.

The only reason that I would ever recommend a second mortgage or a home equity line of credit is in an emergency situation. Only when there is no other option and you must take out a loan would I recommend either one of these options.

Second Mortgage - Home Equity Vs Refinance

Tuesday, September 27, 2011

Mortgage Interest Rates: Can You Predict Mortgage Interest Rate Trends?

If you are a homeowner, mortgage interest rates are an important aspect of your finances. The interest rate you qualify for is the price you pay to finance your home. Mortgage interest rates change frequently under the influence of many economic factors. If you are in the process of taking out a new mortgage or refinancing your old mortgage can you predict the optimal mortgage interest rate?

Before applying for a mortgage it is important to know what interest rates have been doing. If interest rates are rising you will have to work harder to find a good deal for your mortgage. Can you predict when interest rates will rise and fall? The answer is simply "no" and anyone that tells you that they can is selling something.

Home Refinance Rates

Rather than spending your time trying to forecast mortgage interest rates you are much better off doing your homework and researching mortgage offers. This will allow you to choose the best mortgage for your financial situation. Interest rates are important; however, they are only one aspect of the loan that you need to consider.

Many homeowners make the mistake of focusing solely on mortgage interest rates. If you do this you will overlook other expenses such as discount and origination points as well as closing costs. You can learn more about finding the best mortgage while avoiding common mistakes by registering for a free mortgage guidebook: "Five Things You Need to Know About Your Mortgage."

Mortgage Interest Rates: Can You Predict Mortgage Interest Rate Trends?

Lower mortgage interest relief for families, creating

With all the negative news about the economy in recent years, many families who have looked to purchase a new home in Canada or is willing to renew their current mortgage their dreams have expected, but this is good news summer! Mortgage rates are limited to a minimum in almost two years with a 5-year hovering between 3.09% and 3.39% decreased.

In addition, due to changes in the law of mortgages this year that created some anxiety for the first time at homeBuyer, lower rates are a sign of welcome move forward. The new lower rates for homeowners that are better than a course for their mortgage, refinance loan for debt consolidation, free to invest capital, you have been waiting to renew or buy a second property.

Home Refinance Rates

If you already own a home, the benefits of these new low rates and refinance a mortgage today offers many potential benefits, including:

• Reduce your monthly payment (second mortgage, second mortgage, refinancing orRenewal).

• Reduce the depreciation and pay off your mortgage years earlier.

• Save thousands of dollars in interest for the duration of the loan.

• Use to consolidate a portion of your capital at high interest debt

• make starting a business, invest, take a trip, pay for college or a wedding ... It 'your money, you decide.

Mortgage refinancing is one of the best ways to borrow money because of lower interest rates on mortgages offered with respect toloans or other financing options.

With banks and lenders across Canada to compete for business there are many more options for home ownership affordable for families, the challenges in the past by non-traditional sources of income such as independence, new immigrant Canada, bad credit (loans had not) and other challenges, such as divorce or single parents.

If you buy a home, refinancing or consolidating your debts are thought to speak for a mortgageBroker to see what options you have, a broker can buy the best rates and options, without negotiating longer credit checks on you, on your behalf, and there are no costs for which you are working with a broker. Buying a home is an important decision, take time to explore all the options available and make sure that your broker and when it comes to questions - which can also help create a team of experts to run the legal advice, inspections,Reports, customer incentives, real estate agents, and more.

Lower mortgage interest relief for families, creating

Monday, September 26, 2011

The refinancing rate at home - When is worth it to refinance?

If interest rates are two points below the current mortgage interest rates were, it was a good rule to refinance. But close to today's low cost, a difference of one percent, you save money on interest costs. Even with low rates of refinancing only worth it if you can be sure you can recover the costs of new mortgages.

Calculate costs

Home Refinance Rates

Refinancing is simply paying a loan and a new one. The same fees you paid with the first mortgage isprobably pay for the second mortgage. Usually cost loans between $ 2000 to $ 6000 for a loan of $ 200,000. They have also added the points for lower interest rates, the addition of thousands more. The only way to recover these costs is to keep a mortgage for several years.

Interest

Financially worthwhile to refinance, you must be sure that the interest rates low enough to pay for the costs of refinancing. A simple way to discover this is to use a mortgageInterest from a host of websites of loan. These machines, you get an estimated monthly payment and total interest costs. By inserting different interest rates, the savings can be.

Short Term

Besides interest, you need to compare terms. The shorter the loan to pay the interest is not. Ideally, if you refinance, you should choose a loan with a maturity of less. You can also bi-weekly mortgage where you pay halfMortgage payment every two weeks, which may reduce the credit for years.

Find Low Cost Lenders

Not all lenders charge the same amounts or interest, you can save thousands by finding lenders. You can easily walk to get the name of big banks and offer loans, but some smaller companies offer better financing deals. The easiest way to find through an online mortgage broker. Basically, you enter some basic information about themselves and income, and thenYou receive several offers. From this list of offers, you can decide who the best refinancing package.

In order to refinance our list of recommended mortgage lenders online, visit this
Page: Loan Recommended
Refinance Lenders online.

The refinancing rate at home - When is worth it to refinance?