No Fee Mortgages Coming Soon
Buying a home, especially for the first time, can be a daunting experience. There are endless credit checks, bank checks, employment checks, appraisals and more paperwork than seems to make sense. Adding to the angst associated with buying a home is the endless list of fees that are added to the cost of the mortgage. In addition to the interest rate quoted for the loan itself, lenders add other items to the closing costs, including appraisal fees, loan origination fees, credit report fees, document preparation fees, postage fees and all manner of other items that are often not even mentioned by the lender until closing time. The borrower often ends up suffering from a form of "sticker shock" at closing time, as the costs associated with closing on the loan are often substantially higher than expected. That may change, however, as several banks are about to introduce so-called "no fee" mortgages. The concept of lending without a long list of additional fees isn't new; banks have been offering "no fee" home equity loans for several years. The continued boom in the national real estate market has prompted increased competition among lenders. Dropping the itemized fees from first mortgages is the latest attempt by several large banks to try to stay ahead of the competition. The fees, some of which are nothing more than added-in profit, will still exist. It just isn't possible to obtain a mortgage without a credit check or an appraisal of the property. What the "no fee" mortgages offer is an interest rate that is slightly higher than the standard mortgage. The fees are simply rolled into the total price, and the borrower has a much simpler set of paperwork at closing. Lenders think that by streamlining the process, overall costs can be lowered, and the savings can be passed on to the customer. Those interested in purchasing a home with a "no fee" mortgage should ask around, as several large national banks are offering them now. Be aware that the name is a bit of a misnomer; "hidden fee" would probably be more accurate. Still, the process is simpler with a "no fee" mortgage, and there is definitely less "sticker shock" at closing time. ©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a Website devoted to debt consolidation information and HomeEquityHelp.net, a site devoted to information on home equity loans.
Related News
|
 |
|
|
RELATED ARTICLES
Commercially Viable Commercial Mortgages
Commercial mortgages are similar to residential mortgages. Usually taken by businesses, commercial mortgages are secured against business property.
Option One Mortgage Loans ? Getting an Option ARM or Option One Mortgage Loan
Have you heard about or been interested in finding out more about option one mortgage loans? They are becoming very popular, but its important to understand how they work before you apply for one. I will describe, in this article, an overview of the most common type of option ARM mortgage loan or option one mortgage loan.
Home Loans ? Repair Credit Errors in Three Days!
Most consumers are aware that a history of paying bills late or not at all can hurt one's ability to obtain a loan. All financial transactions are recorded by three credit bureaus and offered to lenders upon request in the form of a credit report. That report contains the all-important credit score, which determines whether or not the borrower is a good risk for a loan. If you have a poor payment history, you could be out of luck when you try to obtain a loan. The same applies if there are errors on your credit report that suggest that you may pose a greater risk to the lender than you really do. Traditionally, it has taken months to straighten out problems on a credit report, and borrowers who are eager to close on a mortgage or home equity loan may not have months to wait. What can be done? A relatively new mortgage-related product known as rapid rescoring can, in some instances, fix problems on a credit report in as little as three days.
Buying a House? How Much Home Can You Afford?
Maybe you've heard the expert advice that your debt to income ratio shouldn't be more than 36 percent of your total income. But do you truly know what that means, and how lenders will look at your financial history in order to decide whether or not to extend you a mortgage? If you need help figuring out your debt to income ratio, simply follow the guidelines below and soon you'll know whether or not you're in a position to apply for a mortgage loan.
5 Steps to Getting on Top of your Mortgage
Getting on top of your mortgage so you can pay your loan off faster and potentially save thousands of dollars on your home loan is possible with a plan and consistent effort. There are mortgage reduction strategies that you can put into place that will ensure that your loan is paid off more quickly without putting a huge strain on your current budget. The following tips are designed to help you pay off your mortgage as quickly as possible.
A Home Equity Loan - What You Should Know?
Asking yourself, "Is a home equity loan right for me?" is the first and most important step to take.
How to Use a Home Equity Line of Credit Calculator
Most home owners know that the lower the interest rate, the lower the monthly payments. But then the process may get a bit fuzzy. While your monthly payments may be the same every month, you are not applying the same amount to the principal of the loan. Your amortization will vary month to month. So, you will have to use a little math to determine how much equity you are actually gaining. Are you confused yet? If you are, don't worry. There is luckily a very helpful tool that will take the guess work out of home equity loans. Before you commit to anything, you should play around with a home equity loan calculator to determine how much you can borrow. There are many sites available online that give you free access to a wealth of tools and calculators.
Real Estate Mortgage Loans Online
Online real estate mortgage loans enable borrowers to be sure they are getting the best financing rates. By comparing online quotes, you can save time and money with no risk. An added bonus is the ability to apply for loans online from the comfort of your own home.
Buying a Home when Rates go Up
Many people fret the rising tide of interest rates. You'll hear things like, "Did I miss the boat? Is it too expensive now to buy a home? How can I afford the house of my dreams? Maybe I should wait! Maybe I should just rent for a while! Maybe the rates will go down in a few weeks. "
Refinance Your Home Equity Loan
Refinancing your home equity loan is an excellent way to save money. By refinancing your home equity loan you can lower your interest rate and finance for a longer or shorter term. Some things to consider before refinancing your home equity loan are the possible tax benefits, how long you intend to stay in your home, what your long term financial goals are, and how could you use the money to benefit your family. Refinancing your home equity loan is a great way to save money each month.
Buying A Home After Bankruptcy - Get A Mortgage Loan After Bankruptcy
If you have a recent bankruptcy on your credit and are looking to get financing for a home, there is hope. Buying a home with bad credit will just put more emphasis on the other two factors needed to get a mortgage loan, which are; income verification and a down payment.
Escrow Accounts, Do You Absolutely Need One?
With escrow accounts the money for your home insurance and property tax is added to your monthly mortgage payment and is paid out each year. With that said, you may think that having an escrow account takes the responsibility off your shoulders because the bank will make the payment for you each year from your escrow savings account. But beware, because many people have found that their property tax and home insurance have not been paid on time or at all!
Mortgage Loan Information - Know The Basics When You Refinance or Purchase a Home
If you are currently looking for a new home, chances are that in all the excitement you won't really give any thought to the type of home loan mortgage you take out, instead going with the first one offered to you. This could be a serious mistake ? costing you thousands, if not tens of thousands. Make sure you know all about the different types of home mortgage loans before you starting looking for that new dream home!
Rates May Be Rising: Mortgage And Refinancing Preparation Made Simple For You
Buying a home is probably the single largest investment most people make in a lifetime. By preparing yourself and your credit before a home purchase or refinance, you can ensure a smooth finance process and can potentially save thousands on your loan. Improve your financial profile now so you can take advantage of the low interest rates before they disappear.
No Money Down Mortgage Loans - Ways To Get Approved For a Home Loan Online With Zero Down
No money down mortgage loans enabled more people to own their own home. The following ways will help you get approved for a home loan online with zero down.
Thought You Can Go All Alone In Mortgages! Mortgage Advice Beneficial In All Important Decisions
Mortgages are easy as long as you understand them well. But how many borrowers can be confident of their knowledge of mortgages.
Jumbo Mortgage Loans - Getting Approved for a Jumbo Mortgage Loan Online
Getting approved for a jumbo mortgage loan online is similar to getting approved for a traditional mortgage when you use a mortgage broker. However, you can expect to find lower interest rates online with better terms.
Homeowners? insurance: The mortgage connection
A home owners' insurance is the cover for the house against natural calamities as well as liability. This covers the house and its contents but also other personal possessions which the house secures. The natural calamities include fires and winds. It covers thefts and vandalism as well. It is also called hazard insurance (http://www.mortgagefit.com/hazard-insurance.html)
Seller Financing
Although any loan used for buying real estate is strictly called a purchase money mortgage, the term is often employed for seller financing, those transactions in which you "take back" a mortgage as part of the purchase price. These arrangements are suitable, of course, only when you do not need your proceeds immediately toward the purchase of another home.
Mortgage Free In 15 Years!
Imagine paying your mortgage off in 15 years! Think of all the great things you could do with that extra money. What would you do? Retire early? Buy an R.V.? Travel around the world? If you could eliminate your mortgage in half the time, then your options would be wide open.
|
