I've found this site to be a good central location to get info on mortgagesand other interesting stuff.

From my recent experience buying a home I learned by talking to bothe my real estate agent and my mortgage broker that those who have a credit score of 680 or better enjoy a much better interest rate, and a much easier time getting a mortgage than those with a FICO score under 680. Now we all probably know that having better credit is going to help, but this was the first time I actually received an actual number of what the minimum FICO score I should aim for should be. This is a good reason to start keeping track of your credit score by getting credit reports from all 3 agencies at least once a quarter. Click here if you don't know what your Credit Score is. Once you know that you can start shopping for a mortgage while mortgage rates are still low! Homeowners Click Here

After getting my mortgage I saw a much more detailed article that this post about the effects of credit score on your life. It was in this months issue of Consumer Reports.

While reading "Mortgages for Dummies" this weekend I found a useful tip about credit cards. Make sure you are always under 80% of your credit limit on each credit card to get a better rate on your mortgage. It has something to do with ratios they use to figure out your rate and their risk. The "Mortgages for Dummies" book has been so helpful I think I'll grab the "Home Buying for Dummies" book as well.

by: Chris Rocks

What is important to lenders?

Not every applicant is approved for a home loan the first time he or she applies. For a variety of reasons, even after a lot of hard work, sometimes a loan just can’t be approved. It may have to do with the applicant’s credit or savings history, employment stability, debt structure, or the value of the home. The good news is that a denial is merely a detour, not a roadblock. Purchasing a home takes planning, discipline and hard work! Follow these tips and with our assistance, homeownership is not out of reach.

Establish a consistent record of paying bills on time.

Before making a loan the size of a home loan, most lenders will want to review how you have handled your credit in the past. This includes all credit accounts, including utilities, revolving debt (credit cards, etc.), and installment debt (car loans, student loans, etc.). It is critical for you to bring all overdue bills up to date immediately and begin paying them on time in a consistent manner.

Establish a consistent record of steady employment.

Lenders are more likely to look favorably on an applicant who has been in the same (or similar) line of work for generally two or more years. If you have been working steadily for less than two or more years, expect the lender to ask why. There are many acceptable reasons, including:

• You recently finished school, vocational training, or left the military;
• Your work is typically seasonal and gaps in employment are customary to the industry
• You may have been laid off from your job; or
• Frequent employment changes are normal in your line of work (sales, contract work, etc.), but you have been consistently employed and maintained a consistent level of income over the past 2 years.

You may want to pay off some debt to lower your debt-to-income ratio.

This step will make it easier to qualify for a mortgage loan if your debt ratio is high. Chances are good that if you’re already paying rent, making a mortgage payment will be a smooth transition. Along with the mortgage payment, you’re also responsible for real estate taxes and insurance, and if required, mortgage insurance and homeowners dues. Work with us to determine the monthly payment you can afford based on your income and the standard debt-to-income ratio guidelines.

Establish a consistent savings pattern.

Saving money for a down payment, and still having enough reserves left over to cover two months of expenses in the event of an emergency, is typically the most challenging part of buying a home. While sometimes it is difficult, this is a necessary step to ensure you are financially ready to take the plunge into homeownership.

About The Author Chris Rocks is a Mortgage Consultant specializing in working with First Time Home Buyers. FirstHomeTips.com, a site designed by Chris, was created to help make the home buying process less complicated and less stressful for the first time buyer. Website URL: http://www.firsthometips.com Contact Email Address: chris@firsthometips.com

by: Ted Kushner

With all the talk lately about Mortgage Cycling versus Bi-Weekly Mortgages which one is really right for you? Choosing the correct one could literally save you thousands of dollars and shave off approximately 20 years on the life of your 30 year mortgage.

So a little background on the principal of each program needs to be told. Bi-weekly mortgages became popular a few years back when interest rates were extremely high and it made a lot of sense to pay as much on the principal of your mortgage as you can in a systematic way.

The way it works is that your mortgage payments are split in two every month so you end up paying (26) 1/2 payments instead of 12 whole payments which in effect ends up paying one additional month towards your principal.

Doing this ends up saving the average homeowner thousands of dollars on the interest payments over 30 years and shaves off around 7 years of payments. Not bad for back then. But as interest rates started to drop the net effect of savings are not as great now as they were when rates were higher.

But with the discovery of a recent mortgage loophole by Craig Romero, a senior mortgage analyst, Mortgage Cycling was born. Mortgage cycling allows a homeowner to build up 10 times faster then biweekly mortgages and allows you to pay of your 30 year mortgage in 10 years or less.

Mortgage cycling allows a homeowner to build up equity in their home fast using a patent pending technique. So fast that it ends up paying off a traditional 30 year mortgage in just about 10 years.

At first I was skeptical on how powerful mortgage cycling is until I compared using a typical $150,000 loan for thirty years at 7% interest. After running the figures though the difference between a bi-weekly mortgage versus mortgage cycling is dramatic.

                   Bi-weekly        Mortgage Cycling 
Equity 1 year        $1,520            $14,061

Equity 3 years       $4,900            $44,972

Equity 5 years       $8,787            $74,179

Equity 9 years       $18,397           $136,429

No matter the loan amount, interest rates or mortgage term, mortgage cycling showed to dramatically cut down the payment time and interest payments to your mortgage company over the life of the loan.

Imagine what you could do with all that extra money that you can put back in your pocket instead of your mortgage company.

Now mortgage cycling may not be for everyone. But for someone who has the discipline it can be a very effective way of building up the equity in your home and to pay it off extremely fast versus using a standard bi-weekly option.

About The Author Ted Kushner writes about consumer issue topics of interests. If you would like to learn more about Mortgage Cycling and how it can benefit you visit: http://www.affiliaterevenuesources.com/mortgage-cycling . © 2004 Affiliaterevenuesources.com

This article was posted on January 09, 2005