Author: blogger

Lets take a look now at some mortgage loan terms and what they mean. Adjustable rate mortgage is the type of mortgage where the interest rates change over time and are based on a set index or margin. Changes to your rate are made at set times and within set limits according to your contact. Amortization is when you pay your mortgage through installments gradually over a set period of time. Annual Percentage Rate or (A.P.R.) is the percentage rate you pay on your mortgage annually. Generally this percentage is higher than the actual stated percentage due to outside credit costs.

Appraisal is the determination of the market value of your homes value and is done by a professional. It is used to determine insurance rates and mortgage rates among other things. Cash Reserve is your cash reserve is having enough money left over after closing to pay your first two mortgage payments.

Closing is the point at which the sale of the home has been finalized. This is the point at which the buyer signs for the home and the closing costs have been paid. The deed is a legal document that is considered the title to the property. Earnest Money is money that is given to the seller buy the intended buyer in order to bind the forthcoming transaction.

Equity is the value of your home above and beyond the loans you have on your property. Fixed-Rated Mortgage is the type of mortgage where the interest rate has been determined and set for the entire term of the loan.

There are many more terms that are used in the real estate world and they are easily accessible online or at your local library. You should definitely do your research into all of the information available to you before you buy a home so you will understand what you are doing. Research an understanding is a very important part of any investment.

For those that are seeking a Mortgage Ireland opportunity within a First Time Buyer Mortgage program, prospects should be prepared to meet several criteria beforehand. Before a mortgage repayment plan can be established within these criteria, lenders look for reasonable amounts of spending habits for each individual or couple. Therefore, if an individual has a minimum amount of personal borrowing this will indeed help the applicant to obtain lending within a First Time Buyer Mortgage plan. Adversely, a short-term borrowing scheme may hurt a couple or individual that is looking to acquire their first home. This is especially true for those looking to borrow the maximum mortgage level for a prospective home.

Also, rental payments are also viewed for persons seeking to borrow within the Ireland locality. If an individual or couples desire to meet the criteria for a home buyer program, then the history of rental payments will also be considered. This means that a couple or individual will have to show that they paid their rent on time and on a regular basis.

Furthermore, mortgage lenders in Ireland also look at the history of savings. Those that are seeking a Mortgage Ireland opportunity will have to vouch for steady savings buildup as one criterion the First Time Buyer Mortgage program.

Another criterion that lenders will look at is the security of employment. They will want to know if a prospective Mortgage Ireland client has full-time and/or permanent positions for employment. The length of current employment will also be considered, as well as the occupation before the current employment took place. Many lenders will look at the sector of employment as well, especial during a recession.

Lenders will want to know if all of a couples or individuals income is derived from basic wages, or are their other significant income resources elsewhere. Is there any chance for the individual or couple to receive paid overtime or achieve bonuses during their current employment or any of the commissions received reasonable within the individuals or couples lifestyle. Can any additional income be vouched for?

Credit history and lifestyle will also be viewed for Mortgage Ireland prospects within a First Time Buyer Mortgage opportunity. Credit history should be well maintained an up-to-date and should also contain smaller credit card balances and a clean credit history, During a lifestyle check up, lenders will apply a prospective mortgage to an individuals or couples account to see how it would apply. Will the individual or couple have money left over at the end of the month after all account is paid? Does the individual or couple spend large amounts of money on gambling or eating out during the month?

It is important to note that some lenders are flexible and can substitute certain forms of criteria depending on the weight of other significant factors within a couples or individuals history, and should an area fall short to meet standard criteria, then there is also opportunity to bring in other guarantors. Even so, those that need lending should not depend totally on a guarantor to meet the criteria of an Ireland mortgage, because some weightiness will still be applied to their history and current credit status in order to borrow what is desired. All of these aspects will be measured for a Mortgage Ireland lending opening within a First Time Buyer Mortgage plan.

Commercial borrowers are likely to be confused when they are turned down and will probably be unsure as to why it happened and what to do next. For each of the five major reasons that a bank might decline a commercial mortgage, a practical strategy is provided for converting the declined commercial mortgage loan into an approved business loan.

Two of the reasons (business plans and tax returns) will potentially impact all commercial borrowers. Many commercial mortgage loan officers will start their business loan review by stating some variation of “Can you show me your business plan?” and “We will need to see several years of tax returns.”

Commercial projects are frequently too unique for traditional commercial banks. In these situations (even if a commercial borrower has favorable tax returns and an adequate business plan), it is not unusual for the business owner to be declined for a commercial mortgage loan by a traditional commercial lender.

The reasons provided below represent commonly-found issues. It is likely that several of the reasons will be relevant for most business loan scenarios.

Commercial Mortgage Rejections: (1) Special Purpose Properties

Reason Number One for business loan rejections: The lender does not make commercial mortgage loans for the type of business financing involved or imposes special covenants that make the commercial real estate loan difficult for the business owner. In a typical example, fewer commercial banks are offering business financing for bar and restaurant properties.

Similarly, auto service businesses are frequently given unnecessary (and expensive) environmental reporting requirements. There are many “special purpose” properties such as funeral homes, campgrounds and churches that most traditional banks will not include in their business lending portfolio.

Strategy Number One for converting the rejected commercial real estate loan into an approved business loan: For most commercial borrowers, there are viable commercial mortgage options beyond traditional commercial lender choices.

There are action-oriented non-traditional commercial lenders that will offer commercial mortgage loans for most special purpose commercial property situations. The best business financing could be available only from a non-traditional lender when a traditional lender won’t provide the necessary commercial real estate loan.

Commercial Mortgage Rejections: (2) Tax Returns

Reason Number Two for business loan rejections: A loan underwriter finds an issue on tax returns that disqualifies a business borrower under the bank’s lending standards. This “issue” will often be inadequate net income, but when commercial loan underwriters analyze income tax returns, there can be a wide variety of other possibilities which produce the same disapproval.

Strategy Number Two for converting the rejected commercial real estate loan into an approved business loan: Commercial borrowers will never have this reason to worry about if they have applied for a “Stated Income” commercial mortgage loan. Very few traditional lenders use a Stated Income process (no income verification, no tax returns, no IRS Form 4506) for a commercial loan.

Business borrowers should look for lenders using Stated Income business loans. This approach, however, will not work for all commercial loans due to a prevailing maximum loan of $3 million for typical Stated Income commercial mortgage situations.

Commercial Mortgage Rejections: (3) Cash Out Limitations

Reason Number Three for commercial mortgage loan and business loan disapprovals: When a business attempts to refinance their commercial property loan and wants to get significant cash out, it is normal for a traditional bank to restrict what the funds are used for and to severely limit the amount of cash received. Even though the bank is willing to make the commercial loan, if they won’t provide the cash required by the commercial borrower, this is similar to rejecting the loan.

Strategy Number Three for converting the declined commercial mortgage into an approved commercial real estate loan: As mentioned above, there are other commercial lending options available. The commercial borrower’s mission (and it is not impossible at all) is to use a commercial real estate lender that will allow them to get much larger amounts of cash out of a commercial refinancing without restrictions on what they do with it.

Commercial Mortgage Rejections: (4) Collateral Required

Reason Number Four for business loan rejections: The bank will not approve a commercial mortgage loan without collateral, typically as a lien on the commercial borrower’s personal residence or other personal assets.

Strategy Number Four for converting the rejected commercial real estate loan into an approved business loan: Commercial mortgage borrowers should seek out business lenders that do not cross collateralize assets as a requirement for receiving a commercial loan. This will provide more options for the borrower and eliminate unnecessary and unwise connections between personal and commercial assets.

Commercial Mortgage Rejections: (5) Business Plan Requirements

Reason Number Five for commercial mortgage loan and business loan disapprovals: A bank’s loan officer determines that the business plan does not support the needed commercial loan.

Strategy Number Five for converting the rejected commercial real estate loan into an approved business loan: Business borrowers should experience fewer delays and profit from dealing with a commercial lender that does not have a business plan requirement due to several key benefits:

(A) Reduce commercial loan costs by thousands of dollars. A common range for an average business plan (prepared to typical bank specifications) is $5,000 to $10,000.

(B) Shorten the business financing closing period. Business plan preparation is likely to take 1-2 months or more.

(C) If a professional business plan is not needed, an approval for the business financing requires one less item.

Copyright 2005-2007 AEX Commercial Financing Group, LLC. All Rights Reserved.

Online amortization schedule calculators are some of the best online available. They are web-based, so they do not need additional software or applications. Amortization schedules can be calculated immediately online on one of their web pages.

Ewmortgage.com is a mortgage advisor website that features a Java-based interactive amortization table (http://www.ewmortgage.com/mortgage/), and other mortgage-related applications such as APR/front end calculator, 5/25 and 7/23 balloon convertible mortgage calculator, car leasing payment calculator, monthly payment table generator, income qualification calculator, nominal and effective interest rate calculator, etc.

Realdata.com, real estate investment and development software developers, offers a web-based amortization utility (http://realdata.com/ds/amort2.shtml) and a Microsoft Excel version (http://realdata.com/ds/amort.xls) that can be downloaded for free. The web tool is Java-based so you need to enable JavaScript in your browser.

Calculators4mortgages.com also has a Java-based Amortization Schedule (http://www.calculators4mortgages.com/Calculators/Amortization-Schedule/amortization_schedule.html) that calculates the monthly payment of a specific loan and breaks down the amount of principal and interest paid over the term of the loan.

HSH Associates (http://www.hsh.com/calc-amort.html), a consumer loan information website, features an amortization calculator to generate an amortization schedule (by month or by year), as well the monthly payment for a mortgage paid either monthly or bi-weekly. It is also capable of demonstrating the effects of prepaying your mortgage on an irregular or regular basis. There is also a JavaScript version available.

Century21.com, a real estate website, lets you calculate amortization schedules and save, and email the result or amortization table. However, you need to register to use the save and email features. Registration also allows you to store your search criteria, file agent information and build a custom library. Entry method is standard such as loan amount, interest rate, loan term and monthly payment.

Bi-weekly mortgages are a good way of saving money on a home mortgage, but a mortgage accelerator is far more effective. Mortgage accelerator systems save far more money than bi-weekly systems.

Every month, most of your mortgage payment goes toward interest, and only a very small amount goes toward reducing the principal. If you could do something that would cause less of that monthly payment to go toward interest, more of it would go toward principal! Is this possible? YES!

How? Use a mortgage accelerator! It’s a method that makes more of your monthly payment go toward principal. If you think this means making bi-weekly mortgage payments, you’re wrong. Real mortgage accelerators don’t change your regular monthly payment but more of it goes toward principal, and less to interest. Basically, you’re earning money on your own mortgage!

Mortgage accelerators are misunderstood but don’t be put off. Not only do they work, but also, using one can cut the time it takes to pay off a 30 year loan to just 10 years, and save you hundreds of thousands of dollars. Banks naturally don’t want you to know this and how much better it is than a bi-weekly mortgage. Actually, bi-weekly mortgages only save about 5 years.

The best mortgage accelerators use the “Australian method”, so-named because it was first used in Australia in the mid 1990’s. Since then, many people in countries around the world have used it with great success. Still, in the USA, it is not well-known. But don’t be put off because it really works and can save the average homeowner a fortune in mortgage interest.

There are several companies selling mortgage accelerators, and some of them charge thousands of dollars. Still, they are all based on the Australian model and so all will work, so you don’t have to spend more than a few hundred dollars.

One of the best values is the Mortgage Magic System.
The Mortgage Magic System lets you use the bank’s money to your own advantage.

Using this System, you will owe less money to the bank each month, and more of your monthly payment will go toward paying down your loan – in effect, making money on your mortgage.

Here’s how it works: you are going to use your regular income to offset your mortgage loan by having your income reduce your mortgage balance. For every dollar of income, you will owe a dollar less on your mortgage.

By using your regular income to offset your mortgage balance, you owe less on your loan. As a result, you owe less interest for the period! But you also need your income to pay bills and pay for my daily needs. No problem, because you have access to it anytime you need it to pay your bills.

If you’re excited about a system that is so much better than bi-weekly mortgages,there’s more. You see, if you can pay off your largest debt (your mortgage) in about 10 years, you’ll have all those extra years where your monthly discretionary income will increase by thousands of dollars each month. You’ll be able to quickly grow your retirement savings over those years, instead of paying all that money to the bank each month!

You think this sounds too good to be true, but it’s not, and there’s absolutely no risk of using a mortgage accelerator. So, if you want to save money on your mortgage with a bi-weekly mortgage system, use a mortgage accelerator instead.