Coral asked:


How many points does your credit score go down for every late mortgage payment made 30-35 days after the due date?

Is this hard to repair?

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Joseph Kenny asked:


When interest rates fall, there are savings to be made. This is true for everyone, not just people currently looking for a new home or mortgage. This means that even if you have already bought your home or already committed to a mortgage, you can take real advantage of lower interest rates.

For many people this will not be necessary, as they will have a variable rate mortgage that goes down as interest rates fall and so you get to take advantage of lower interest rates as they come. However there are many situations in which re-mortgaging will be beneficial.

Step One

The first is for people who are tied into fixed rate mortgages at higher rates. Since their mortgage rate is fixed, they will not be getting any of the advantages of lower interest rates. This is an unenviable position and one of the best ways to get out of it is to re-mortgage on better terms. You will have to check if this is worthwhile however. If your existing mortgage has redemption penalties or an extended tie in, then getting out of the mortgage is likely to cost you a lot of money. You will also have to consider the arrangement or refinancing fees and add this to the cost of making the change. Only if, after calculating all of these extra charges, the lower rates are worth the expense of re-mortgaging, should you go through with the transaction.

There are also people on variable rate mortgages who can benefit from re-mortgaging. This is because even though their current mortgage will have reduced its interest rates in line with a lower Bank of England rate, there may be significantly cheaper mortgages on the market that they wish to switch to.

Redemption Costs

Just like many loans on the market if you wish to pay your mortgage off early then you may be liable to pay an early redemption penalty. Normally for a personal loan in the UK the average payment or charge is between one or two months interest payments. This charge should be taken into consideration when contemplating transferring your mortage away from your current provider.

Your In Credit

Often, people re-mortgage because they find that their credit rating has improved dramatically since they took out their first mortgage. If you took out a mortgage five years ago, then it could well be the case that your income has increased, the value of your home has increased, and you may also have some savings now. All of these factors will allow you to apply for more exclusive mortgages that offer better rates. If this is the case for you, then looking into a re-mortgage that takes advantage of all these benefits is a very good idea. Don’t be afraid to take the best offers available to you on the mortgage market.



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iceman asked:


I have solid credit, a round a 700 credit score. However my Fiance has poor credit due to some problems in college and her lack of using credit in the past few years. Her income is very good, and without it I could ever carry the mortgage we are looking for on my own. My question is how much will her credit score effect the type of rate we get or the get of line we get?

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Susan Zanzonico asked:


Buying and restoring a historic home might be easier than you think. If you can qualify for a mortgage, you might be able to get financing for the restoration as well, under Section 203(k) of the National Housing Act (NHA). This legislation makes it easier for buyers to stay in the historic market of their choice, and find a home to suit their needs.

The 203 (k) program differs from other mortgages because it provides financing beyond the cost of the house or property. In most cases, upgrades to a property must be completed before the mortgage is made, in order to provide adequate loan security to the lender – this might require a buyer to find a high interest interim loan for their restoration after acquiring a property. With the 203 (k) program, a buyer can have just one mortgage at a long-term rate, covering both the purchase and rehabilitation of a property. These mortgages are based on the projected value of the property after the upgrades, taking into account the cost of the work.

Lenders can minimize their risk under the 203 (k) program by having their mortgage endorsed by the Department of Housing and Urban Development as soon as proceeds are disbursed and the mortgage escrow created.

A wide variety of property types are eli gable for 203 (k) financing, but some form of residential use on the property is required. Eligible properties must also be at least one year since completion, and all newly constructed units must attach to the existing building. For a mixed use property to qualify, only a certain percentage of it may be used commercially, and upgrade funds must only be used for the residential parts of the building, or areas used to access the residential sections. One story buildings eligible for 203 (k) financing are limited to 25 per cent commercial use, while two story buildings are limited to 49 per cent, and three story buildings are limited to 33 per cent. The purchase and upgrade of an owner occupied condominium unit can also be financed through a 203 (k) mortgage, as long as renovations are limited to the interior of the unit. Demolished or razed homes may even qualify, providing some of the existing foundation remains in place.

Finding a lender for a 203 (k) mortgage isn’t difficult. The program is designed to minimizes risk to lenders, while providing ample opportunity for buyers to increase the value of their home and preserve historic areas. As a result, many 203 (k) borrowers are able to pay back their mortgages faster than traditional mortgage borrowers.



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Joseph Kenny asked:


Many senior citizens do not know where to get the funds to pay for their health care. This may be why the issue of reverse mortgages is getting so much attention in the media. Many senior citizens are unsure of how to get the finances to continue caring for themselves if heath problems arise. The need for long-term health and medical care is getting to be more relevant to our American society. There are larger numbers of people who are reaching retirement age than ever before and they need health care alternatives.

As you read the newspaper or watch television or as you browse the financial websites on investments, the idea of reverse mortgages tends to pop up. Often an attempt is made to explain what the different advantages and disadvantages are to the reverse mortgage. There are two major organizations which have given endorsements to the reverse mortgage option to provide long-term care to seniors in certain circumstances; AARP and the NCOA.

The NCOA (National Council on Aging) conducted a report which stated that over 13 million people are eligible to use a reverse mortgage to fund their long-term expenses at home and to keep their independence at home longer. This is an option that offers an advantage of having alternative financial resources from which to draw funds for medical care. Less money is taken from Medicare and Medicaid, both of which have great financial pressure on them because of the large volume of retirees that rely on them.

A reverse mortgage is also known as a home equity conversion mortgage. Reverse mortgages are supported by federal agencies such as FHA and HUD. People who are sixty two and older are the most frequent users of the reverse mortgage program. These people are usually the ones who have paid their mortgages off and have usable equity in their homes. The amount that the recipient of the reverse mortgage can draw against is usually capped by the value of the house.

Instead of making a monthly mortgage payment the reverse is true, as the homeowner actually receives the payments. The money that is received through a reverse mortgage is tax free and will not affect your current Medicare or SSI benefits. Seniors don’t have to worry about the money being taken from their monthly incomes.

In the event that the homeowner does leave the home to move into a nursing facility or a retirement community the reverse mortgage will have to be paid back. This type of loan is based on the equity you have in the home, but even if the payments to you over time amount to more, you only have to pay back what the house is valued at when the mortgage was taken out.

Not everyone will find that a reverse mortgage will be the best way to deal with their circumstances but it is still a very good option for some. As an aging baby-boomer or an older senior citizen you may benefit from this information.



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