Different Mortgage Types Explained By Chris Borthwick

The two types of mortgages are repayment and interest only. You could also have a mixture of the two. There are obviously benefits to each option, pros and cons depending on your situation.

Repayment Mortgage

A repayment mortgage will see monthly payments go towards reducing the amount owed on the principal sum as well as paying a portion of the interest accrued for taking the mortgage. This type of mortgage will have higher mortgage repayments but will allow you to pay off your mortgage quicker.

The Plus Points

You can see your loan getting smaller; you are reducing your debt level as quickly as possible.

The Negative Points

In the first few years of the loan, the majority of the repayments will be mainly interest. Therefore the loan won't be reduced much at the beginning.

The Interest-only option

An interest only mortgage as the name suggests will pay only interest on the mortgage therefore you aren't repaying any of the loan. If you go with this option you should have a plan in place to make the repayments of the loan in the future, for example from a savings account or an investment.

The Plus Points

As you are paying off interest on the loan and not the loan itself, your monthly payments will be lower.

The Negative Points

This option means you need to be careful with your finances and make sure the repayment option you choose is viable and will repay the loan in the future; reviewing regularly to ensure it is on track to repay the loan. If the loan isn't enough at the end of the term, you could lose your home. If you do find you aren't going to have enough to repay, you can ask your lender to switch part or all of your mortgage to a repayment mortgage. You could overpay your mortgage which will reduce the overall interest over the term of the mortgage. You could also start a new savings investment or use cash ISA savings to pay off your mortgage. Reviewing your savings after each bank of England base rate change will ensure you are always receiving the best interest rate and obviously investing wisely in longer term fixed rate investments can give you better return rates.

Whether you want a mortgage Aberdeen or mortgage for a home in York following the above advice will give you a great start with your first property.

Chris Borthwick writes articles covering a broad range of subjects. His main area of expertise is mortgage advice and writes many articles on mortgages for finance industry, mortgage brokers and for the general.

Mortgage Loan Modification Programs - Which Program Do You Qualify For? By Susan V. Gregory

Struggling borrowers looking for help with a mortgage loan modification program may be confused about what type of program they may qualify for. No wonder, with so many new announcements from lenders and the Feds about various government sponsored and independent loan modification programs, borrowers may find themselves scratching their heads and wondering where to start. Here is some helpful information on the basic programs available to homeowners:

1. Fannie Mae streamlined modification program (SMP) is a mortgage loan modification program for borrowers who have a loan owned or serviced by Fannie Mae. This applies to most conforming loans and has been implemented to reduce the monthly payments of qualified borrowers to equal 38% of their gross monthly income. This is done by lowering the interest rate to as low as 3%, extending the loan term and forbearance of principal. There are certain qualifications for this program that you can learn more about.
2. FHA Partial Claim mortgage loan modification is available for homeowners whose loan is insured by the FHA. Under this program, a deferred "silent" loan is used to cover the arrears and bring the loan current. No payment or interest is due on this loan until the home is sold or the loan refinanced.
3. Individual lender mortgage loan modification programs offer various options for qualified borrowers to lower their monthly payment to an affordable amount. This may be accomplished by a reduction in the interest rate, an longer loan term, principal forbearance or a combination of all of these options. Each lender has their criteria that must be met for a loan modification to be approved. You can learn about lender guidelines and how to increase your chance of success.

Millions of homeowners are facing foreclosure-but help is available for borrowers who know how to get it. Why are some homeowners denied a mortgage loan modification while others are approved? If you are interested in contacting your lender to see if you qualify, make sure you have a good general understanding of the qualifications and guidelines for approval before you submit your application. Billions of dollars have been allocated to help homeowners just like you-don't wait-get started today so you can get back on track.

You can get the help you need to understand mortgage loan modification programs by ordering and downloading The Complete Loan Modification Guide. This is a low cost, easy to read handbook that will provide you with everything you need to prepare a professional and acceptable loan modification application. You are provided with all of the necessary forms and given detailed directions on how to complete them properly. The Complete Loan Modification Guide will take you step by step through calculating your debt ratio, completing the financial statements, writing your hardship letter and then putting it all together to submit to your lender. Get started today on the path to secure home ownership, order and download The Complete Loan Modification Guide.

For more information about mortgage loan modification, please visit us at: http://www.myloanmodificationcenter.com

Loan Modification Programs - 3 Important Qualifications For Approval By Susan V. Gregory

Trying to apply for a loan modification but worried about whether you will qualify? It's true that not everyone will qualify for a loan modification to lower their payment-so how can you be sure to get your application to the front of the line and have the best chance for approval? Here are 3 Important Qualifications for approval you should know before you apply.

Loan Modification Qualification #1: You must be able to demonstrate to your lender that you have suffered a financial hardship that has made your current mortgage payment unaffordable. There are certain circumstances that lenders will consider as an acceptable hardship situation. Divorce/separation, military service, death of a family member, job loss, reduction in income, medical expenses, illness, incarceration and job transfer are all considered to be eligible for consideration. Loss of equity alone does not.

Loan Modification Qualification #2: Can you prove to your lender that if given the new lower modified mortgage payment you will be able to afford to maintain it now and in the future? Lenders want to know that you will not be at risk of defaulting again. How can you prove this to them? Make it simple by providing the required financial statements-one Current and one Proposed-so that they will demonstrate your ability to pay the new payment and help convince your lender to grant an approval for your proposed new lower payment.

Loan Modification Qualification #3: Be able to submit an accurate, acceptable and complete application to your bank for review and consideration. Your lender will make a decision based in large part on the information you provide to them. Submitting an incomplete and poorly prepared application can result in a denial of the help you need. Be sure you prepare the paperwork properly and then submit everything your lender will need all together in a professional and acceptable loan modification package.

These are extraordinary times and more homeowners are faced with losing their homes than at any other time in our nations history. Borrowers who need help cannot wait to be rescued-help is available but you must know how to get it and be prepared to fight for your home. Start now by learning and preparing to submit your program application to your lender to get the help you need and deserve. Billions of dollars in your tax dollars have been allocated for loan modification programs to help stop foreclosures. Don't miss out on your chance to save your family's home.

You do not have to try to figure this out by yourself- get the help you need to understand the mortgage loan modification process by ordering and downloading The Complete Loan Modification Guide. This is a low cost, easy to read handbook that will provide you with everything you need to prepare a professional and acceptable loan modification application. You are provided with all of the necessary forms and given detailed directions on how to complete them properly. The Complete Loan Modification Guide will take you step by step through calculating your debt ratio, completing the financial statements, writing your hardship letter and then putting it all together to submit to your lender. Get started today on the path to secure home ownership, order and download The Complete Loan Modification Guide.

For more information about mortgage loan modification, please visit us at: http://www.myloanmodificationcenter.com