50-Year Mortgage A Viable Alternative.

Getting a 50-year loan is a perfectly rational way to avoid an interest-only or payment-option adjustable-rate mortgage. Both of these loans feature Adjustable Rate Mortgages (ARMs), but can also feature a negative amortization factor... which if the borrower doesn't administer or manage properly, can cause problems in the long run.

With an interest-only mortgage, the minimum monthly payment puts little or no money toward principal. And, a payment-option ARM can go a little further... in some circumstances, the minimum monthly payment doesn't cover the interest accrued that month. A borrower could make a minimum payment at the beginning of the month, and then going into the next month, could find that he now owes more than was owed before the payment. This situation is referred to as negative amortization, or "going negative." It can be avoided if the borrower pays attention to his mortgage statements, and makes more than the minimum payment. However, some borrowers don't pay attention and get into trouble.

For borrowers who want to avoid the possibility of going negative, the 50-year mortgage might make sense. It offers lower monthly payments than a traditional 30-year mortgage... like the interest-only or payment-option loan. And, it also offers a predictable and fixed housing payment. Additionally, in areas where housing prices are rising or have risen substantially, the lower payments provided by a 50-year mortgage make a home or property more affordable. Want more information about the 50-year mortgage? Consult your Mortgage Match loan consultant.

New Rules for Mortgages.

As a result of the "subprime fallout", there are new rules in the business of getting a mortgage; particularly if you're a credit-challenged borrower. If you're not familiar with current events as they pertain to mortgages, and don't exactly know what's meant by the "subprime fallout", here's the situation in a nutshell. For the past 2 to 3 years, and perhaps as long as 4 years ago, mortgage lenders reached out to credit-challenged borrowers with new programs that essentially relaxed the standards for buying a home with no money down. For a time, borrowers with less than fair credit were able to obtain zero down loans. This might sound good so far, but things happened that caused lots of problems with these loans. It's a little too long and complicated to recount the whole story and discuss all of the factors involved. But, the end result was that many of the borrowers who obtained these loans started defaulting on their payments. Soon, foreclosures followed in very high numbers, and the lenders who made these loans found themselves in serious trouble. A large number of these lenders have gone out of business because of this. And, this is what prompted the new rules of the mortgage "game". While these new guidelines aren't etched in concrete yet, new universal standards are beginning to take shape. Before the subprime fallout, borrowers with midscore FICOs down to 580, and who could document their incomes, could obtain zero down, interest only mortgages. Now, that magic FICO score is in the low 600s... with 600 being about the lowest acceptable FICO midscore number. Many lenders have put the minimum FICO at 620 for zero down. For a "stated income" loan, the new minimum FICO score seems to be 640. Since these standards are rapidly changing with modifications and new policies being added every week, it's best to talk with a Mortgage Match loan consultant for the most up-to-date information.

After Bankruptcy Mortgage Credit Tip.

It's surprising how many borrowers apply for a mortgage after a bankruptcy discharge without taking any steps to repair the damage done from their bankruptcy. It's very, very unlikely that a borrower will be able to obtain a mortgage without taking some credit improvement steps first. The bankruptcy laws do eliminate or reduce your debt, and get creditors off your back. But, they do not wipe out the bad credit profile that's been created on your road to bankruptcy.

Accounts that have been reported late, gone to collection, or resulted in reposession, and that were included in your bankruptcy are still on your credit reports. Each, and all of these individual accounts are being reported as derogatory marks against you. Very often, just the sheer number of them will bring down your credit scores, because each one of these derogatory accounts takes points off your score.

Now, in case you haven't read elsewhere on the Mortgage Match website, the minimum, midscore FICO required to obtain a zero down mortgage is 580. It's very true that there are mortgage lenders who will approve you for a mortgage just one day after your bankruptcy discharge, but the borrower still needs to meet this minimum, midscore FICO requirement to qualify. And, it's very rare that a borrower emerges from bankruptcy with a midscore this high. Consequently, one of the first things a borrower should do, not just for obtaining a mortgage, but for starting their credit lives over again, is to see that the individual files or accounts covered in the bankruptcy are deleted from all 3 credit reports. Bankruptcy borrowers have the right to request that the credit bureaus delete these accounts on the grounds that their dispositions were governed under the bankruptcy.

Taking steps to remove these items from your credit reports is an absolute must, and one of the fastest and easiest ways to significantly improve your credit after a bankruptcy. It's a relatively simple process you can do yourself. There's no need to purchase expensive credit repair. It requires just basic knowledge of how to contact, approach and deal with the credit bureaus on this issue. However, if you don't have a clue as to how to get started, you might try this website: PDQ Credit Repair. It lays out all the basics with simple, easy-to-follow, how-to, help for the fast-track in getting back your credit life.

Free Mortgage Quotes

WATCH OUT! What you might not know about obtaining a free quote and preapproval could hurt you.
Beware of mortgage brokers, loan officers and other mortgage representatives who quote you a rate before following the proper steps toward a valid preapproval.

It's only natural that a mortgage shopper will make contact with a mortgage rep to obtain pricing information when shopping for a mortgage. However, there's a right way and a wrong way to obtain this information. Accurate, reliable information can only come from the actual lender or investor who's going to fund the loan. Mortgage brokers and loan officers arrange and facilitate the acquisition and processing of mortgage loans, but they do NOT fund them.

Some mortgage reps, anxious and under pressure to get your business, will ask you a few questions... then "quote" or suggest a rate as a means of "closing the sale" with you. It might be a "best guess" on their part, but it's very often a much, more attractive rate than you'll actually get. This is the wrong way to acquire this information. But, many borrowers press their mortgage rep for this information without allowing him or her to follow the proper procedures.

A valid, bona fide rate and preapproval can only come after you have agreed to allow your credit report to be reviewed by the actual lender, along with supplying enough information to complete key portions of the document known as the 1003 Uniform Residential Loan Application.

If the mortgage rep or company you're dealing with does not approach the quote and preapproval process this way, you're not getting valid and reliable information.

Did you know...?
According to the Better Business Bureau, the single largest and most common grievance against mortgage companies and their reps deals with borrowers who complain they didn't get the rate (at their loan's closing) they were quoted. At Mortgage Match, we know you don't need any unpleasant surprises. That's why we only employ the proper and right approach to quoting rates and providing preapproval. To get your free, no-obligation quote and preapproval, click here.

Mortgages After Bankruptcy.

Mortgage Match is one of the Net's leading websites for assisting borrowers who have had to file bankruptcy to obtain mortgages after their bankruptcies have been discharged. Now, while it's entirely possible that a borrower can obtain a mortgage just one day after bankruptcy discharge, it's not typical that a borrower has been able to sustain a credit score high enough, after reorganizing through a bankruptcy, to be able to qualify for a new mortgage... especially a zero down mortgage.

The vast majority of lenders who make mortgages available to borrowers who have filed bankruptcy require a minimum, midscore FICO of 580 for a zero down mortgage. In fact, it's practically impossible to obtain a zero down mortgage with anything less than a 580 midscore FICO after a bankruptcy is reported by any of the three major credit bureaus.

Now, the vast majority of borrowers who have filed bankruptcy typically sustain a midscore FICO of around 550. Moreover, after filing bankruptcy, it's quite rare that a borrower comes through the bankruptcy process with a FICO too much higher than this common 550 score. Therefore, if the borrower is looking for a zero down mortgage, or a zero down mortgage is the only way the borrower can purchase a property, then the borrower will have to employ some method of credit repair or improvement to raise their midscore FICO to the magic number of 580.

The author of the PDQ DIY Credit Repair Guide offers this free tip for those borrowers who need to employ a quick fix for their credit after a bankruptcy filing... "When you file bankruptcy, there is a difference between your creditors and the credit bureaus. A successful bankruptcy petition erases your debts with the creditors, but does not erase the record of the debts reported by the credit bureaus. For the fastest fix, and by far the most important and meaningful improvement to your credit reports after a bankruptcy, take the following steps:

First, collect the following materials: your driver's license (or some other official, photo ID), your Social Security card, and Schedule F (the schedule of debts from your bankruptcy petition which lists the name, account number and address of the creditors). Then, make three copies of this package -- one for each of the three major credit bureaus... Experian, Equifax and TransUnion. Next, go through the dispute resolution process. For the proper and most effective way to approach the dispute process, please refer to the PDQ DIY Credit Repair Guide (click here). Send a copy of your dispute package to each credit bureau with a letter explaining that each creditor, listed as either active or derogatory, was included in your petition, and should therefore be removed or deleted from your credit report.

It is important to be aware that even if you mistakenly left out a creditor from your list of debts... that debt is still discharged. Under Beezley v. California Land Title (994 F.2d 1433), a bankruptcy discharge, discharges all debts that arose before the filing of the bankruptcy, whether or not the debt was listed in the schedule of debts. If this is your situation, you do not need to re-open your bankruptcy to include the omitted debt. However, the creditor must be notified, so send your dispute package to the credit bureaus... and any creditors... who were left out of your bankruptcy petition.

Last, but not least... you may need to keep after the credit bureaus to make sure they follow through and remove the inaccurate items."

After you've enlisted this credit repair step, your Mortgage Match Loan Consultant may be able to employ our Rapid Rescore process to effectively raise your credit score as fast as possible.

Get Free Preapproval Online.

If you've been searching the internet for a mortgage portal which can provide you with a free quote, preapproval and everything else you need to know about your mortgage entirely online, you've found it at Mortgage Match. There's no need to talk with anyone until you're well into the mortgage process. You must simply be agreeable to providing the required information, and have the willingness to respond and communicate via email. Your preapproval and obtaining accurate pricing, rates, terms and conditions can be accomplished faster... sometimes in just a matter of hours... rather than it stretching into days... when you use the Mortgage Match Online approach. If you're purchasing a property, you can expect your preapproval letter to e-mailed to you; usually within just a couple of hours after starting the process. If there are any issues with your request and quote, you'll be advised what those issues are, and how they can be resolved. To take advantage of the fast and free online preapproval and rate quote at Mortgage Match, just click here.

Current Interest Rates

Current interest rates are naturally of major concern to most mortgage shoppers. However, the average mortgage shopper or prospective borrower shouldn't put too much stock into current, interest-rate reports or feeds, like the one published here, and updated 14-times daily. The average borrower should be using these reports only as a benchmark, and shouldn't be disappointed when the interest rate they're quoted is more than just slightly higher than those published rates they've researched. Here's why...

For a variety of reasons, the average borrower won't be offered a rate that's as low as the current published rate. First, the lowest published rates represent national averages which may not be available in all states. Next, the published current rates are usually those offered to the most well-qualified borrowers who are borrowing funds under optimum conditions. This means borrowers who have down payments for purchases, borrowers who can document their incomes, borrowers who are financing properties which will be owner-occupied, and borrowers who have midscore FICOs which are higher than the reported national average FICO score of 678... to name just a few.

And, be wary of mortgage brokers who quote you a rate or suggest they can obtain a specific rate without first pulling your credit and submitting your 1003 loan application to at least one lender. There isn't a mortgage broker in the country who's going to write the check which funds your loan at closing. Consequently, the only valid, bona fide quote you can be confident about is the one you're offered when you're preapproved by an actual lender. At Mortgage Match, you can get a fast, free and accurate quote on interest rates after a short interview with a Senior Loan Consultant for preapproval by clicking here. Or, you can get preapproved entirely online and through email, and know eveything there is to know about your loan by clicking here.

No Down Payment Mortgages

Until just a few years ago, the average down payment for a house or home was 20%. In today's market, where the median house value can be well over $200,000, that would mean needing to have $40,000 for a down payment. Can you imagine how long it might take the average wage earner to save $40,000?... would it even be possible for most aspiring homeowners?

To circumvent this down payment obstacle for the average home buyer, mortgage lenders introduced mortgages which require no down payment at all. These programs are popularly known as "zero down" or "no down payment" mortgages, and provide 100% financing of the value of the property being purchased.

For many people, putting no money down on a house may be the only way they're able to buy one. While for others, zero down mortgages make for sound financial strategies. Consider borrowers who are buying a second home or vacation property. It may make sense for them not to tap into retirement savings. Still others live in real estate markets where property appreciation is fast and high, and it just makes sense to purchase a home as fast as possible to capture that fast rising equity and make it theirs.

But while zero down mortgages solve a lot of problems for many different buying situations, borrowers using these mortgages should understand that zero down mortgages represent much increased risk for lenders. Zero down borrowing does not represent the optimal way to acquire a mortgage. So, lenders don't extend the best rates and pricing to zero down borrowers. We've all seen those internet ads hypeing mortgage deals in the "Get a $300,000 mortgage for less than $1,000 per month" fashion. This aggressive kind of pricing is never attached to a zero down loan. These super-hyped programs apply only to very well-qualified borrowers with excellent credit, great assets, verifiable income and who are making a meaningful down payment.

If you're a zero down borrower with lean assets expect to be at the higher end of pricing on your mortgage. Zero down borrowing simply doesn't allow consumers to have their "cake and eat it too". Zero down borrowers, from a lender's point of view, have less to lose since they're not putting cash into the deal. So, for the luxury and ability of being able to purchase property with no assets, lenders expect borrowers to pay a little more.

Whatever your borrowing profile, whether you're a first-time buyer, looking for a weekend, getaway-retreat, saving money for the kids' college tuition, or eyeing better investments than real estate, if the trade-off of the best rates and pricing makes sense for zero down borrowing, then the best source you'll find for aggressive, lowest-total-cost, zero down mortgages... many with interest only options, is right here at Mortgage Match. Regardless of where you live or are buying, get preapproved for your zero down mortgage, fast, free and without obligation by clicking here.

10 Biggest Refinancing Mistakes.

1. Refinancing with your existing lender without shopping around.
Your existing lender may not have the best rates and programs available. There's a general misconception that it's easier to work with your current mortgage company. In most cases, your current mortgage company will require the same amount of documentation as other companies will. This is because most loans are sold on the secondary market, and have to be approved independently. So, even if you've been very good at making payments to your existing lender, to a large extent, they may still need to treat you like a new customer.

2. Not doing a break-even analysis.
Find out what the total cost of the refinance is, then figure out how much you'll save every month. Divide the total cost by the monthly savings to get the number of months you'll have to stay in the property to break even on your refinancing costs. Example: if your refinance costs $2000 and you save $50/month, your break-even is 2000/50 = 40 months. You should refinance if you plan to stay in the house for at least 40 months.
Note: The break-even analysis only works if you're refinancing to save money. If you're refinancing to switch from an adjustable to a fixed loan, or from a 30-year loan to a 15-year loan, it's much more difficult to perform a break-even analysis.

3. Not getting a written good-faith estimate of closing costs.
Your mortgage company or loan consultant is required to provide you with a written, good-faith estimate of closing costs within 3 working days of receiving your signed application.

4. Paying for an appraisal when you think your house may appraise too low.
Ask the appraisal company to do a desk review appraisal (typically at no charge) to provide you with a range of possible values. Your mortgage company can ask their appraiser to do this for you as well. Plus, your local Title Insurance company will often furnish you with a market value analysis at no charge. Don't waste your money on a full appraisal if you're doubtful about the value of your house.

5. Using the county tax-assessors' value as the market value of your house.
Mortgage companies don't use the county tax-assessors' value to determine whether they will make the loan. Instead, they use a market-value appraisal which may be very different from the assessed value.

6. Signing your loan documents without reviewing them.
Don't sign documents in a hurry. Whenever possible try to get documents that you'll be signing ahead of time so you can review them. It's advisable to ask for a copy of all loan papers you're signing a few days ahead of the close of escrow. This way you can review them and get your questions answered. Don't expect to read all the documents during the closing. There's rarely enough time to do that.

7. Not providing documents to your mortgage company in a timely manner.
When your mortgage company asks you for additional paperwork, jump on it! Don't complain. They're trying to get you approved, not trying to hassle you unnecessarily! Jump through the hoops as quickly as possible. Borrowers who don't respond to requests for documentation often run the risk of paying higher rates if the rate lock expires.

8. Not getting a rate lock in writing.
When a mortgage company tells you they have locked your rate, get a written statement which details the interest rate, the length of the rate lock and details about the program.

9. Pulling cash out of your credit line before you refinance your first mortgage.
Many lenders have "cash-out" seasoning requirements. This means that if you pull cash out of your credit line for anything other than home improvements, they'll consider the refinance to be a "cash-out" refinance. This may lead to much stricter requirements, and can, in some cases, break the deal!

10. Getting a second mortgage before you refinance your first mortgage.
Many mortgage companies look at the combined loan amounts (i.e. the first loan, plus the second loan) even when they're refinancing the first mortgage. If you plan on refinancing your first, check with your mortgage company to find out if getting a second mortgage will cause your refinance to get turned down.

Homebuyers' 10 Biggest Mistakes.

For most people, their home is the biggest investment they will ever make. However, few people do the research necessary to make a good buying decision. The home-purchase process is extremely confusing for most people. With a little bit of homework, with advice from family and friends who have been through the process before, and with all of the information and resources provided here at Mortage Match you can make this a little easier on yourself. There is no substitute for taking the time to educate yourself before you buy a house––which typically costs you 25% to 40% of your gross income!

10 biggest mistakes when buying a house.

1. Looking for a house without getting pre-approved.
Do not confuse a pre-approval with a pre-qualification. During the pre-qualification process, a loan officer asks you a few questions and may hand you a pre-qual letter. The pre-approval process is much more complete and much stronger.

During a pre-approval, the loan consultant does all the work of a full-approval, except for the appraisal and title search. When you are pre-approved, you become like a CASH BUYER and have more negotiating clout with the seller. In some cases (especially in multiple-offer situations), having a pre-approval can make the difference between buying a home and not buying a home. In other instances, home buyers have been able to save thousands of dollars as a result of being in a better negotiating situation.

Most good Realtors will not show you homes before being pre-approved because they do not want to waste your time, their time, and the seller's time. At Mortgage Match, pre-approval is always fast and free... something which is not always true with other mortgage funding sources. A strong, reliable pre-approval requires checking your credit and your income.

2. Making verbal agreements.
If an agent makes you sign a written document that is contrary to their verbal commitments, don't do it! Example: the agent says that the washer will come with the house, but the contract says that it will not. In this case, the written contract will override the verbal contract. In fact, written contracts almost always override verbal contracts. Buying a house can be a very complex process––but it's a lot easier when everything is in writing.

3. Choosing a lender just because they have the lowest rate.
Not getting a written good-faith estimate. While rate is important, you have to look at the overall cost of your loan. This includes looking at the APR, the loan fees, closing costs, as well as the discount and origination points.

You should also feel comfortable that the loan officer you are dealing with is committed to your best interests, and will deliver what he or she promises. Often, the company that has the absolute lowest quoted rate may not be the best company for your mortgage business.

4. Choosing a lender because they're recommended by your Realtor.
Your Realtor is not a financial expert. Chances are they may not know the best loan for you. The Realtor only gets a commission when your mortgage loan closes and funds. As a result, the Realtor may refer you to a lender who may be able to close the loan, but not necessarily a lender who has favorable rates, fees or programs. Also, many Realtors refer you to their friends in the loan business––who again, may not be able to get the best loan for you, or may not even be able to close the loan. Even if the Realtor is very professional and appears to be looking out for your best interests, you should still do your own homework. There are countless stories of borrowers who wound up paying higher rates, getting a loan program that wasn't right for them, or not getting their loan closed at all, because they blindly followed their Realtor's advice.

5. Not getting a rate lock in writing.
When a mortgage company tells you they have locked your rate, get a written statement which details the interest rate, the length of the rate lock, and details about the program.

6. Using a dual agent––i.e. an agent who represents the buyer and the seller on the same transaction.
Buyers and sellers have opposing interests. A dual agent in many normal or typical situations cannot be fair to both the buyer and seller. Most dual agents represent the sellers more strongly than they do the buyer. If you are a buyer, it is much better to have your own agent who will be on your side. The only time you should even consider a dual agent is when you get a price break from using a dual agent. If that is the case, then tread carefully and do your homework!

7. Buying a house without a professional inspection.
Taking the sellers word that they have made repairs. Unless you are buying a new house where you have warranties on most equipment, it is highly recommended that you get a property inspection, a roof inspection and a termite inspection. This way you will know what you are buying. Inspection reports are great negotiating tools when it comes to asking the seller to make repairs. If a professional home inspector states that certain repairs be done, the seller is more likely to agree to do them.

8. Not shopping for home insurance until you are ready to close.
Start shopping for insurance as soon as you have an accepted offer. Many buyers wait until the last minute to get insurance and do not have time to shop around. Click here for a great place to shop online for homeowners' insurance.

9. Signing documents without reading them.
Do not sign documents in a hurry. Whenever possible try to get documents that you will be signing ahead of time so you can review them. It is advisable to ask for a copy of all loan papers you are signing a few days ahead of the close of escrow. This way you can review them and get your questions answered. Do not expect to read all the documents during the closing. There is rarely enough time to do that.

10. Making your moving plans too tight.
Example: you expect to move out of your prior residence on a Friday and into your new residence over the weekend. So you give notice to your landlord to end your lease on a Friday and arrange for movers to come to your house on Friday. Then, your loan closing gets delayed until the next Tuesday. You now may be homeless! New tenants could be moving into your apartment, and the movers are going to charge you for wasting their time. You could be forced to live in a motel for a couple of days! A better plan is to allow for a 5-7 day overlap between closing and moving. In the long run it is not nearly as expensive, and it will certainly give you peace of mind.