Sunday, December 26, 2010

What Is A Good Credit Score For Mortgages?

There was a time when having bad credit made it extremely difficult to obtain mortgages. A good credit score for mortgages or other lines of financing was a necessity. Fortunately, there has been some change in the mortgages industry so that some people with less than perfect finances are able to obtain home loans with reasonable interest rates.

Mortgages company for bad credit have made it possible to apply for and receive mortgages. There are many reasons for owning your own home including building equity within your own property instead of putting your money into someone else's property as a rental. Home equity loans and lines of financing are perfect for tapping into your home's equity to help cover home improvements, unexpected expenses, and debt consolidation.

There are both public and government-backed mortgage lenders as well as private lenders. Whichever you apply for a home loan with, be aware that your potential mortgage will be considered subprime.

If you are hoping to get approved for a home loan with bad financing, you may qualify for a much better rate if you fix any problems found on your report. Keeping in mind that a payment history is very important to lenders, do your best to pay all bills on time and to pay a little more than the minimum payment.

While shopping for a home loan that will fit your needs, be sure to obtain multiple quotes by using a mortgage broker. Brokers can help you locate many subprime lenders that offer bad mortgages. If your finances are evaluated by four different lenders, it may decrease your score. Instead, provide a good credit description. The lender you select will check your credit before finalizing the loan.

By: Abigayle Drysdale
For more guidelines on turning bad credit to good see For more info on a good credit score for mortgage see:

Monday, December 6, 2010

Pros and Cons of Capped Rate Mortgages

Capped rate mortgages are a type of mortgage wherein the interest rates cannot go above a pre-determined level for a specific period of time. After the capped period expires, the interest rate of the mortgage returns to the lender's original, Standard Variable Rate or SVR.

Capped mortgages, in many ways, are a combination of a variable rate mortgage and a fixed rate mortgage. They can act like fixed rate mortgages in the sense that they will not rise above a specific rate, thus, the cap.

Additionally, a capped mortgage also acts like a variable rate mortgage in such a way that your payments can change on a month-to-month basis in accordance with the Bank of England's base rate.

So what exactly are the pros and cons of capped mortgages? Here are are some of them:

The Pros

*First and foremost, you are having the best of the 2 sides of the coin, being fixed and being variable. If the rates go beyond your cap, then you are protected. If they fall then of course you benefit from it.

*A lot of capped mortgages will not fall below a minimum rate - this is known as the collar.

*You get rest assured knowing that you will benefit from low interest rates and that during the capped period, your rate will not rise above the pre-determined limit.

The Cons

*Of course all deals have their cons as well, one negative aspect of a capped mortgage is that the rates that you pay will be higher than the regular fixed rate mortgage.

*You will no doubt have to pay an arrangement fee and,

*Early redemption penalties are likely to be much more expensive compared to other mortgage types.

The thing that you have to remember with a capped rate is that mortgage companies are regularly analyzing the markets and the economy. More often than not they will not set the cap beneath the maximum of their expected rate of interest.

But rates offers differ between lenders - even on a daily basis. So it won't hurt to always talk to a mortgage consultant so that you can identify the best mortgage deal for your needs.

It is a daunting task to find and figure out the best deals available for your needs, if you ever plan to take a capped rate mortgage, then make sure you consult professional mortgage consultant or mortgage lawyer especially if you are new to these concepts. capped rate mortgages may seem the perfect deal for you, but better to be safe than sorry.

By: Lisa Davies

Bad Credit Mortgages - Am I Eligible?

"I have a poor credit rating, so refinancing my existing mortgage or buying my own home is impossible."

This is a common misconception that is held by many people with poor credit history. But you may be surprised to hear that this is not always the case. Bad credit mortgages are available for those with a low credit score and you may be in a better financial position to purchase your own property than you think.

Bad credit mortgages

A decade ago the phrase "Bad credit mortgages" was associated with huge rates of interest, dishonest brokers and excessive charges. But over the past few years, bad credit mortgages have emerged from the shadows. With this type of loan now available at a far more competitive price.

For those with bad credit, it can still be quite difficult to get approved for a mortgage loan. This is because the number of lenders who provide remortgages and mortgages for people with poor credit histories is decreasing. Having said that, there are still a handful of mortgage lenders who are willing to help people with credit issues such as mortgage arrears, defaults or CCJs by offering mortgages that are secured against your property, reducing the amount of risk to the lender.

Mortgage quotes.

Trying to find lenders who offer bad credit mortgages and actually obtaining mortgage quotes can be a tedious and lengthy process. To simplify this process, use a dedicated on-line service to obtain the mortgage quotes for you.

These free search tools allow you to seek out lenders easily and quickly and are very simple to use. Simplify enter your ZIP code and you will be provided with an up-to-date list of lenders in your area who will provide you with free quotes.

If you are searching for lenders who will provide the best deals on bad credit mortgages, then searching for mortgage quotes using an on-line service is by far the best place to start.

By: Michael J. Roberts
For further advice regarding bad credit mortgages or to use our free on-line tool to find the best mortgage quotes, please go here:

Wednesday, December 1, 2010

Mortgages Across the Globe

At Quicken Loans, we often talk about how US mortgage rates are the lowest they've been for our country in decades. This has had me wondering about mortgages industry in other nations. After a little investigating, I came up with some interesting facts worthy of sharing with our readers.

Mortgages in the UK

In the UK, the practice of mortgage a home is very similar to the US, however, it's far more common to have a "flexible" rate in the UK - what we refer to as "adjustable." In fact, people in the UK are surprised to learn that in the US a fixed rate mortgages is the norm!

Also, initial deposits are often less for purchasing a property in the UK. And the US idea of paying "points" to buy down a mortgages rate is unheard of!

Mortgages in Australia

Just like the UK, the adjustable rate mortgage is far more common in Australia. Typically, a rate is fixed for five years, and after that time readjusts to the market rate.

Also, Australian banks are not as flexible with paying off a loan early. While it's possible to pay the loan earlier than the length of the full term, a borrower still must owe the bank the full interest as if the loan were carried to term!

Mortgages in Japan

In Japan, like the US, residential mortgages rate are mostly fixed, though there has recently been more of a push to offer adjustable rate products because of the prolonged low rate interest environment their economy has experienced.

Japan has had its own housing crisis, resulting in a considerable drop in land and home prices. Their mortgage market problems are blamed for their lagging economy, and looked to by the US as an example to try to keep our own economy from stagnating to the same degree

Mortgages in South Korea

In South Korea, mortgages are very common. There are even mortgages for renting, as some landlords require up to 80% upfront of the cost to rent a property (usually for two years) as part of a nationwide practice known as jeonsei. Terms for a mortgage in South Korea are from 5 to 20 years, and down payments for new homes are much higher than those required in the US.

Mortgages in Canada

In Canada, it's much more common to have an adjustable rate term than a fixed rate. The term is typically fixed for five years, and the rate can adjust to market rate at the end of that period.

Just as in the US, Canadian home purchases typically require a 20 percent down payment. Though it's possible to buy a home for a payment lower than 20 percent with the purchase of mortgage loan insurance.

In Canada, if a borrower defaults on mortgage payments, banks can seize the borrowers other assets, such as savings accounts and cars. The US has more restrictions on what lenders can take in the event of a default.

By: Rebecca Carter
Know of any other mortgage practices from around the world? Let us know! We'd love to know more!

Rebecca Carter is a writer with Quicken Loans who specializes in articles about Home Mortgage and other home-buying related information.