Mortgage Lowdown

Every day in America, consumers are victims of mortgage loan schemes that cost more time and money than you were told it would. This phenomenon even has a name: predatory lending a term that has become quite common nowadays. But just because it has a name, it doesn’t become okay to do something like this. And if for some reason, you feel a mortgage lender is cheating you, you can always dump that lender and go in for a more open procedure. Worried if you’d find something that’s transparent, and fair? Well, not everyone is taking such injustice lying down and one such person has devised a method that will help you get out of the clammy clutches of unscrupulous mortgage lenders.

Tammy Butler, a Certified Mortgage Banker with over 20 years of industry experience, and her team have created a unique, new Self-Serve mortgage lending technology. This technology allows the consumer, real estate agent or builder to go online in a secure environment. Within 15 minutes, they receive a true loan approval for themselves or their client without ever having to speak with a loan officer. HomeOwnerDirectLending.com evaluates each individual person’s specific financial situation including credit, and in real-time matches and presents the borrower with a selection of lending products from tens of thousands of mortgage options.

All you need to do is select the type/term of loan that you are interested in. The system then immediately begins the underwriting process. The borrower can even view all actual (not estimated) closing costs for each loan match presented. This is, based on the lending program and geography. This means there is absolutely no room for error and no opportunity to add additional costs to the loan. Based on the your loan choice, all figures presented by the website represent an accurate snapshot of the true cost of the loan.

A recent report by the Mortgage Bankers Association of America shows that 4.7 percent of U.S. mortgages were delinquent at the end of 2005. Outstanding US mortgage debt stands at $9 trillion today and homeowners would do well to use a few tips to avoid mortgage trouble.

Be very careful with ARMs or interest-only loans. These types of loans let borrowers qualify for more expensive homes - but beware as rates (and payments) climb. If you can barely afford the payment on your ARM or interest-only mortgage, you are asking for trouble in a few years when the “teaser period” expires and your loan re-sets to a fixed rate. Be sure you have extra cushion in your budget with these loans. The unexpected can and does happen to millions of Americans each year. For people who live at the far edge of their means, one life event can hijack their lives and lead to defaults on bills and/or mortgage payments.

Online mortgage companies have finetuned the art of luring customers and sometimes, you could end up in big trouble if you are not careful when dealing with these firms. When you consider closing costs and other finance charges, mortgages from online companies may not be the bargain that you as a home buyer is expecting. Zwire.com reports:

"Yes, you do get your fixed rate at the 6.5, or whatever it is, but how much the fees-the prepaid finance charges-are shows you what you’re really paying right up front. And that’s what people are to compare with other lenders," said Jeanie Reiswig, loan officer at Central National Bank, Hillsboro branch.

Read more: Compare APR when shopping for a home mortgage

This is one thing that just about everyone, who has a mortgage loan, dreams of — paying off the mortgage loan and really owning your house. However, as a homeowner, you should be cautious when attempting to pay off your mortgage early. Dailyindia.com reports:

Though you may want to pay off your mortgage early, it is important to make sure you are able to pay for your retirement and the education of your children. You want to remember that tax deductions will play a factor in your mortgage payments, and you should be sure that the tax deductions will work with your financial plans.

Read more: How To Pay Off Your Mortgage Loan Faster

As monthly payments on adjustable-rate mortgages are starting to balloon, quite a few Americans seem to have found a way to work around their payments. No, it’s nothing illegal — they are only refinancing with new adjustable-rate mortgages that keep monthly payments low - for now, that is, though their payments will likely rise even higher in the future. Registerguard.com reports:

This mini-refinancing boom is assuaging fears that rising interest rates and higher monthly payments would drive some borrowers into foreclosure or force them to scale back sharply on other spending. But the refinancing also represents a doubling-down on a bet that housing prices will continue to rise. If the value of the home falls closer to the amount of the loan, that could curb the ability to refinance.

Read more: For Mortgages, A Shot In The Arms

You’ve waited long to buy that dream home and now you think you are ready. You check the market and come across an unbelievable loan offer. It’s just too good to be true. What should you do? Tread very carefully. Such loans usually come with caveats that are invisible initially but will drain you of your money slowly. It is important to remember three things should you ever find yourself faced with this type of situation:

One of the first things you should check before you go in for a home is if you can afford it. If you cannot afford to buy the home, don’t buy it. There are some serious arguments that suggest that the so-called tax advantage to owning a home may be somewhat overstated.

If you think it just might be possible to buy the home then examine your finances first. Determine how much the house is worth and readjust your budget accordingly. Sometimes, you may be face a temporary financial problem. If that is the case, then go in for the home after examining if the loan is good and meets with your requirements. If your financial affairs will take longer to sort out, then it is important to realign your budget so you can afford to make payments on your mortgage loan. But if you cannot sort out your problems try throwing in the towel. It may be a painful decision but will be beneficial in the long run.

If you were very tempted and ended up buying a home with a sub-prime loan, don’t worry. You still have options before you. If you cannot afford your home, attempt to sell it before the lender forecloses. You may find that during the brief time you lived in the house, the property may have appreciated giving you some exit money in the process.

But the best option still is to stay away from sub-prime loans. Some of the most common ways to save money on that mortgage are the ones easiest done before you look for a home: Fix your credit score, save for the down payment, re-adjust your budgets.

Is your mortgage loan scheme costing you much more time and money than you were led to believe? You are not alone. Every day in America, consumers are victims of such mortgage loan officer schemes. This phenomenon even has a name: predatory lending a term that has become quite common nowadays.

However, not everyone is taking this injustice lying down. Tammy Butler, a Certified Mortgage Banker with over 20 years of industry experience is one such person. Ms. Butler and her team have created a unique, new Self-Serve mortgage lending technology, which allows the consumer, real estate agent or builder to go online in a secure environment. Within 15 minutes, they receive a true loan approval for themselves or their client without ever having to speak with a loan officer. Financevisor.com reports:

HomeOwnerDirectLending.com evaluates each individual person’s specific financial situation including credit, and in real-time matches and presents the borrower with a selection of lending products from tens of thousands of mortgage options.

Read more: New Self-Serve Mortgage Technology Eliminates Predatory Lending, Wins Industry Praise

Countrywide Financial Corp., the largest U.S. mortgage lender, recently said second-quarter mortgage volume fell 3 percent from a year earlier. Mortgage financier Freddie Mac said the average rate on 30-year mortgages is 6.74 percent, up from 5.66 percent a year earlier. Reuters.com reports:

"Big lenders are gaining market share because they have a wider spectrum of products and better pricing," said David Olson, co-founder of Wholesale Access, a Columbia, Maryland firm tracking the mortgage industry.

Read more: Countrywide mortgage loans drop, but shares rise

Fact: A good credit score is of great help when you apply for a mortgage. The better your credit score, the easier it will be for you to get a loan. So, if your score is not too good and you want to improve it before you purchase your dream home, try these tricks to get your score back on track:

Pay your bills on time. Late payments definitely have a big negative impact on your score. Did you know that if you delay payment on your bills by 30 days or more, it can lower your score by 50 points or even more. Another thing is you should never max your credit cards. Always try to keep your balance small. If you go on a spending spree, then you may realize that paying off all that money is no easy task.

A recent report by the Mortgage Bankers Association of America shows that 4.7 percent of U.S. mortgages were delinquent at the end of 2005. Outstanding US mortgage debt stands at $9 trillion today and homeowners would do well to use a few tips to avoid mortgage trouble. Emaxhealth.com reports:

Be very careful with ARMs or interest-only loans. These types of loans let borrowers qualify for more expensive homes - but beware as rates (and payments) climb. If you can barely afford the payment on your ARM or interest-only mortgage, you are asking for trouble in a few years when the "teaser period" expires and your loan re-sets to a fixed rate. Be sure you have extra cushion in your budget with these loans.

Read more: Home Loan Tips: Avoid Mortgage Troubles, Other Pangs of Rising Interest Rates