When is a mortgage fee not a mortgage fee?
When is a mortgage fee not a mortgage fee?
This might seem like a strange question but the answer is in fact concerning! A number of lenders have started to charge fees which apply at the point of application but are not-refundable if your application does not proceed. This applies no matter the reason why mortgage application does not proceed ” it makes no difference if it is because you change your mind or the lender rejects your application because of problems with the survey or valuation. Lender s charging non-refundable fees is a relatively new phenomenon but it is something you should look out for. Homebuyers have always known that there is a risk that they will have to pay for surveys on properties that they ultimately are not successful in buying. But incurring fees on a mortgage that you don t get is even more concerning and can have a significant impact on your costs. At the time of writing (6 September 2007) there is a mortgage which has a non-refundable fee of 0.5% of the mortgage amount. On a typical 150,000 mortgage this would amount to a fee of 750 which would not be returned if the mortgage is declined. Given that this applies on a remortgage also it is very important to ensure that you are going to get the mortgage before you apply. To help with this, use a mortgage comparison and buying site that enables you to compare mortgages based on their true cost, including all fees.
Francis Ghiloni is the Marketing Director at mform.co.uk. mform.co.uk helps you to <a href= "http://www.mform.co.uk/mform/mform?contentKey=mortgageinformation/buyertypes/ReMortgaging.xml">compare remortgages</a> and mortgages from every lender in the UK. By using the mform <a href="http://www.mform.co.uk">UK mortgage calculator</a> you can work out your monthly costs.
Mortgagers with credit problems hit hard
The recent turmoil in the world stock markets has been driven by concerns over problems in the US sub-prime market, which specialises in lending to people with poor or no credit history.
Defaults on sub-prime loans have increased significantly, causing companies to revalue assets that were created by grouping large numbers of sub-prime loans together and then selling them on to other financial institutions. This impact on financial institutions - whether they be pension funds, hedge funds or other banks - is what has concerned the markets. But in the UK one of the most immediate impacts of this fall out has been on the very borrowers concerned. A specialist lender, GMAC-RFC announced earlier this week that it had increased rates across its whole sub-prime range by 0.75%. Earlier another lender increased its rates by a whopping 2.5%. These rises will impact directly those who have had credit problems in the past. There is every possibility that some lenders in the UK will be directly impacted by what is going on in this area of the mortgage market and that this may lead to further rate increases or the withdrawal of lenders for this area. That may well lead to current borrowers experiencing significant difficulties and therefore exacerbating the problems.
So what can people looking for a mortgage with previous credit problems do? The main point is not to over commit. There is little point in hunting around to get a mortgage deal that takes account of your past credit problems only for that very deal to cause you more problems! Make sure that you can not only meet the existing level of mortgage payments but that you can also meet them if they increase to a level that is realistically possible. Use affordability calculators to check what level of mortgage payments you can afford. Then check using a rate change calculator that you can still afford those payments if interest rates rise, either generally or for your lender specifically
Francis Ghiloni is the Marketing Director of mform.co.uk, mform.co.uk lets you <a href="http://www.mform.co.uk"> Compare Mortgages</a> from every lender in the UK.
7 Ways To Save Your Home From Going Into Foreclosure
All around the country many homes are in foreclosure or one payment away from being there. This is a fact of life for thousands of people due to financial hardship caused by job loss, injury or relational problems. Many will just give up on their dreams without knowing there is information and programs available to help you save your home. Here are a few ways you may be able to keep your home: 1. Communicate! Communicate! Communicate!: Believe it or not! Something as simple as communicating with your lender the unfortunate circumstances which have caused you to get behind, could help save your home. Most lenders would rather work with the homeowners to help them keep their home then foreclose on the home. Lenders are in business to make money and they earn there money by collecting interest on the loans they have made not foreclosing on properties. 2. Special Forbearance Agreement: This when a lender agrees to postpone or delay starting the foreclosure process to give you (the borrower) a chance to catch up on late or missed payments. If you are sure that the reason you fell behind on your payments are over this may be a good option for you. 3. Partial Claim (for FHA Loans ONLY): This is an agreement between you and your lender (working along with the U.S. Department of Housing and Urban Development) stating they will agree to help you with a one-time payment, from the FHA Insurance fund to bring you current on your loan. You may qualify if your loan is at least 4 months delinquent but not to exceed 12 months. You must be able to begin making your full mortgage payment on time. 4. Loan modification: A loan modification is a change in any of the terms of the original note. Generally, a lender will consider a loan modification when foreclosure is eminent and the borrower’s income has been decreased or he is unable to make the mortgage payments, but will be able to keep the loan current after the loan modification. 5. Investor: Sell your home to an investor and lease it back with an option. This will allow you immediate access to cash while continuing to stay in the property. This will also keep your credit history in good standing. This is a decision to consider when you need cash in a hurry and you do not have time to refinance. Please understand you must be in the position to begin making your new payments on time. 6. Private Party Lenders: This is something to consider when need to refinance to pull cash out but your credit score is low and you do not qualify with other lenders and banks. Keep in mind the interest rate will be higher than other lending institutions. However, if you are temporarily in a bind and you need some cash to put you back on track. This may be the way to go. 7. Repayment Plan: This is an agreement with the lender which adds a portion of the unpaid payments to your regular monthly payments to allow you to catch up and become current. This option is best for someone who recently recovered from a short term financial problem and is now capable of making the regular monthly payments. Before you give up think long and hard about if you really want to keep your home. Then consider if any of these options would work for you.
As the CEO of Unique Real Estate Solutions, I have been involved for over twenty years in every aspect of the real estate profession. In this capacity, I have accumulated substantial holdings of prime residential and commercial properties. In addition to my personal portfolio, I have successfully represented the financial interests of a great number of private investors that have generated substantial profits and a loyal following based upon my reputation as a highly proficient manager ascribing to the latest technical innovations and the highest ethical standards within the industry.
Recently