A mortgage can be a real burden on your monthly budget. If you can pay it off a bit early, you can save a ton of money in interest, and you can release yourself of that stress ahead of schedule. Paying off your mortgage early isn’t as hard as you might think. Here are the best tips for getting the job done before it’s officially due:

Tip #1: Add a few dollars to every payment.
Don’t break your budget, but even if you can only put $5 extra with every payment, do so! $5 may not seem like much, but remember, mortgages are long-term. Over time, those dollars will add up. For example, if your mortgage payment is $1000 a month and you put $10 extra onto every payment, you’ll have paid off a month early in about 8 years. Since mortgages are 15 to 25 years, you can pay off your mortgage two months early over its life! That may not seem like a big difference but as you’re reaching the end, finishing a few months early feels great.

Tip #2: Refinance if the market swings in your favor.
Refinancing isn’t just about pulling money out of your mortgage by cashing in on equity. You can also refinance to lower your interest rate. With a lower interest rate, you can shorten the term, since your monthly payments will also lower. Watch the market. You should refinance when the interest rate is as low as you think it will go. Avoid refinancing more than once or twice because remember, there will be closing costs associated with every refinance. Make sure you calculate these costs into your refinance to make sure that you really will save money.

Tip #3: Don’t miss any payments.
Everyone falls upon hard times financially, but if you’re prepared for it, you shouldn’t have to worry. Save up enough money that you can cover your expenses for about a month. In the case of an emergency, you can turn to this reserved money instead of missing a payment on your mortgage or any other bills. When you miss a payment, not only does it hurt your credit, but it can also be hard to get back on track again, since the following month you’ll owe twice as much. It is a slippery slope, and in addition, you’ll owe more money in fees and interest. Always plan for the unexpected.

Tip #4: Work with a financial professional.
Talking to a professional can really help you save money. Accountants, certified mortgage professionals, and financial advisers often know of tax breaks, mortgage tips, tricks when refinancing, and other ways to help you save money with your mortgage. Every dollar your save can go towards your mortgage, helping your pay off your mortgage more quickly.

Tip #5: Resist the urge to cash in on your equity.
Every time you watch television, you likely see advertisements offering to help you refinance, take out a home equity loan, or apply for a home equity line of credit. These financial tools really make a lot of sense if you need to do home repairs or pay off very high-interest loans. However, doing so will definitely not help you pay off your mortgage any sooner. If it makes sense, then go with this option, but it is very important that you actually need the money. Many people take out loans against their mortgages when they don’t actually need the money. Using this type of loan to purchase designer clothing, a more expensive car, and so forth is just not a good idea.

Tip #6: Make sure that paying off your mortgage ahead of schedule makes sense.
Lastly, before you start throwing extra money at your mortgage lender, make sure that it is a smart financial move. In some cases, it doesn’t make sense. First, you may owe fees if you pay off the mortgage too early. So, if you have a mortgage for 20 years and win the lottery after 2 years, you may want to crunch some numbers to decide when you want to actually pay it off. In addition, check out your interest rate versus the interest rate you’d get if you put the money into a CD, bond, or high-interest savings account. How much would you save in interest every month you pay off the mortgage early? If you put that money into the bank instead, how much money would you make in interest every month? If you’ll make more that you’ll save, it doesn’t make sense to pay off the mortgage ahead of schedule. Do your research to make sure that your mortgage choices make sense!

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Grant Eckert is a freelance writer who writes about several topics including issues concerning the mortgage industry such as Texas Mortgage Rates | Texas Interest Rates

Bankruptcy makes most people feel hopeless and helpless. Don’t feel this way! Just because you have a bankruptcy in your report does not mean that you can’t buy a home or property. Lenders and lending institutions encourage people to find ways to build credit by taking on a debt and that debt could be buying a new home. Of course the lending companies will look at your credit very closely and you would probably get a smaller loan than you would if you did not have bankruptcy on your credit report. You are considered a high risk borrower because of the bankruptcy. Any attemp to raise your credit score after a bankruptcy is a step in the right direction so don't get discouraged.

Most people do not know how a bankruptcy can affect their credit rating. Bankruptcy can provide a way out for people who have serious financial troubles by setting them free from paying back some of their debts. Unless you back is against the wall, it's not a wise thing to do. A bankruptcy can affect your credit from 7 to 10 years. Any time somebody reads the bankruptcy on your credit report it will be like a red flag and you will be closely scrutinized. Be prepared for the highest interest rates for even a small purchase such as a car. Where a normal person would get a 5 or 6% interest-rate, a person with a bankruptcy could get an interest-rate as high as 10 to 15%.

How do you build your credit up and find a home loan after bankruptcy? First, you need to pay your bills on time. Paying bills on time will build your credit rating faster than any other method. You may want to acquire a secured credit card. Even though the money that you would be spending on the credit card is your own, you are still building credit. Getting a copy of your credit report is another way. On credit reports, often you are reported in error to oweing money when in reality you don't.

When your financial direction is reliable, it is time to try to find a home loan. Make sure you have a steady income, enough money for a down payment, and at least two years of employment under your belt, and you have paid your bills on time. Most lenders look at all three points when it comes to granting that first mortgage however, some may let you slide on one or more of these points. Even if you have a steady job and steady income you must prove to the lenders that you are steadfast in that job and will not change jobs or lose your job after the mortgage is granted. You may have to put a sizable down payment and pay a higher interest rate than the person who has a good credit history and no bankruptcy on their current report, but in the end if you use good credit practices, eventually you’ll find someone to lend you money for a home.

Finding a reputable lender willing to loan a home’s total value to someone just beginning the process of rebuilding their credit and with an on-again off-again employment situation, is a tall order and probably not a good idea for the would-be borrower. Post-bankruptcy borrowing should be undertaken at a slow pace and with an eye toward the future. With proof of responsible borrowing and spending, home ownership won’t be far off.
And if necessary you can also search for guaranteed unsecured loans which can be another suitable loan alternative.

Obtaining a mortgage for 100% of the purchase price of a home is much more common today than a few years ago since most people don’t have a bunch of money to put down. Also, in many cases the buyer will finance in the closing costs. And while every lender has somewhat different credit requirements, following are the basic requirements.

• A middle credit score (of the 3 bureaus) of 600. Most lenders recently bumped up the score requirement from 580 to 600. There are however, still a few lenders that will do 100% for a mid score of 580. Also, in most cases you must have at least 2 credit scores. If you only have 2, use the lower of the 2.
• No late rent payments for the last 12 months. The definition of late is 30 days late. As to proof of this, most lenders fall into 1 of 3 categories. 1) Copies of canceled checks, 2) A letter from a landlord and 3) A few don’t even check.
• Time since a Bankruptcy varies all over the board. Some will do 100% if you are only 1 day out. Some want at least 2 years.
• Time since a foreclosure of 3 years. This is true with nearly everyone. One more note on foreclosures. Many lenders call a mortgage with a 120-day late a foreclosure even if it wasn’t actually foreclosed on. Sorry, don’t shoot the messenger.
• A maximum debt to income (or DTI) ratio of 50% and for some lenders 55%. A DTI is calculated by dividing all monthly debt payments including the proposed mortgage with taxes and insurance by your monthly gross income. With many lenders, if you have a mid score of 640, you can “state” (don’t have to prove, within reason) your income. The rate is higher but it can get you over a DTI problem.
• Other – For people with No credit scores and scores below 580, there is still hope. Actually this could turn out to be the best deal ever if you qualify. This involves mostly government (FHA, VA, etc.) loans although there are a couple of non-government programs that do 100% with no scores. While there is a good bit more work needed by you and your broker, these programs can be wonderful. For example, I have helped many people obtain 100% financing with these programs with 30 year fixed rates of 6.75 to 7% and a little mortgage insurance, versus 9%+ on other 100% loans. The key is to have 4 trade lines, which usually don’t show on your credit (rent, utilities, insurance, cell phone, etc.) that have been on time (again, not 30 days late) the last 1 year. You also can’t have any collections, (Some programs will make an exception for medical.) judgments or bankruptcies in the last 2 years.

Well, there you have it. One last note, if your score is below 580 and you don’t qualify for the government programs I covered above, find a broker or credit reporting service that will analyze your credit to see what you can do to quickly raise your credit score. Beware of all the quick fix credit repair services out there. Improving your credit score can sometimes be tricky but doable. For example, paying off an old collection can actually bring your score DOWN! I know this is hard to believe, but I have seen it.

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Ron Stone is a Mortgage Loan Originator specializing in helping people with less than perfect credit to obtain a mortgage. He works in the states of Alabama and Florida. To learn more about the great Alabama Mortgage programs (he has similar programs for Florida), visit him at http://www.alabama-mortgage-specialists.com

MISTAKE #1: Over shopping your loan

Your credit score is based on the perceived risk associated with extending you credit. Over the years, the credit reporting agencies have determined that a borrower who seeks credit from many different lenders is riskier than others. Therefore, they decrease your credit score each time a lender pulls your credit report.

Each time you call a lender seeking the best possible rate and terms for your home mortgage, he has to pull your credit report. This is factored into your credit score, and a lower score decreases your likelihood of getting the best rate and terms.

While some consumers are ONLY focused on rates, you should seek the guidance of a National Association of Responsible Loan Officers member that is willing to speak with you about your loan options. There are literally hundreds of loan products available and every borrower has a different financial situation and financial goal. We highly recommend having a consultation with your loan officer so they can tailor a program to meet your individual needs instead of focusing exclusively on rates and points. You may likely find a better product than the one you were shopping for.

MISTAKE #2: Trying to hide past financial difficulties

One of the important services a responsible loan officer offers is helping you overcome past financial difficulties that may hinder your ability to have your loan approved. Your loan officer is on your side.

Supply the information that will help your loan officer provide you with the best possible rate and terms and minimize the impact of your past credit history. The fact that you have recovered from past financial problems makes you a better risk than others who haven’t yet faced challenges. Overcoming past financial difficulty proves that you honor your commitments and don’t give up.

MISTAKE #3: Allowing a loan officer to put misleading or untruthful information about your income, expense or cash available for down payments on a loan application in order to get a loan

Providing untruthful information on a loan application is fraud. Mortgage fraud is prosecuted by federal authorities, and they will find out about the fraudulent information. Do not allow yourself to become an accomplice of a loan officer’s fraudulent loan application.

Even if a loan officer fills in the information for you, if you do not believe the loan application is 100% truthful, you should refuse to sign it until the loan officer corrects the application. While many loan officers try to “help” borrowers by misstating the facts, the truth is that they are simply getting themselves and their borrowers into a lot of trouble.

MISTAKE #4: Borrowing more than you can repay

All of us understand that we may have to stretch our monthly budgets a bit to afford the homes we want. However, you will put your entire financial health in jeopardy by buying a home you simply cannot afford.

If you buy an expensive home and find you cannot make the monthly payments, you could face a huge loss when you have to sell that home quickly to get out from under your mortgage. Or worse, you could be forced into foreclosure or bankruptcy.

It is much better to be patient, buy a home you can comfortably afford, make payments, build equity and then transition into a larger home after a couple of years. Yes, the larger home will cost more then, but the home you purchased will also have appreciated during that time. Most importantly, you will have built a successful financial foundation that allows you to experience all of your dreams, including that dream home.

MISTAKE #5: Relying on interest rate advertising

Some loan officers use interest rates to get your attention; however, they may actually end up costing you more. Such rates are often derived by using a 30-year mortgage coupled with an accelerated payment plan.

You may decide you like that option, but you cannot directly compare the interest rate on that mortgage to other opportunities. This loan could cost more than other mortgages with seemingly higher interest rates.

It is critical to find a loan officer you can trust to review the options available to you and the best possible rates for your financial situation. Only a responsible loan officer can give you all of your options in an understandable way.

Robert Skrob is the executive director of the National Association of Responsible Loan Officers. Individuals everywhere, looking for home financing resources can turn to the mortgage loan officer director at http://www.narlo.com. You may reach Robert via email to QuestionATNARLO.com

Banks have been cashing in on the virtual property grab which is the new paradigm about the novae riche aspirations.

The new real estate scenario is fueled by the home loans in India. The magnificent India property scenario on the home loans engine has transformed the new middle class aspirations into reality. Banks have been cashing in on the virtual property grab which is the new paradigm about the novae riche aspirations.

Sudhir Nonan is an entry level executive at a call centre in Gurgoan. His yearly package being Rs 250,000. He knew he would end up spending half of his salary for a descent accommodation on rental. He approached a number of home loan banks and all came explaining to his doorstep why he should go for a home loan with each of them.

He soon decided for one after going through the real estate market. “It was tough to find a property though to get money to buy was perhaps the easiest; I went around every inch of Gurgaon; I think there may not have been a street in Gurgaon, both new and old, where I had not been and in the process almost all property dealers became my best friends and started knowing me by name; this happens when you have limited to spend for a home for yourself yet you have some decent aspirations,” says Sudhir.

The home loan banking thus has come to be as one of the biggest sectors of bank transactions that has really turned the economy full circle. The real estate boom now could be attributed to the genuine buyer who needs a home for himself and of a quality close to what is projected as international with right décor and what have you.

The genuine buyer is moving hand in hand with the speculator. A bad interest rates market coupled with uncertain stocks performance led to rise of a major class of speculators mostly being first timers who fueled growth in other places of the country which were far away from the developing zones thus triggering real estate effect even in minor regions accessible on major arterial roads of the country.

Aditya Jaiswal, advisor of home loans for NRIs, is an associated editor with the site: http://www.guide2homeloan.com. The site is an online portal to provide home loan advice on home loans in India including types of home loans in India, home loan interest rates in India provided by home loan providers in India.