Mortgages Interest Rates: How Rising Rates Affect Your Mortgage Loan.

You’ve probably heard in the news that mortgage interest rates have been on the rise. The Federal Reserve has been raising interest rates consistently for the past two years. If you are concerned how this will affect your mortgage, the impact it will have depends on the type of mortgage you have and how it is structured. Here are tips to help you make sense of mortgage interest rates.

Mortgage lenders borrow money to fund their loans from Federal Reserve banks. Mortgage lenders and banks receive discount interest rates on these loans; the interest rate lenders are charged is determined by the Federal Reserve Board.

The Federal Reserve meets every month to make policy adjustments, change interest rates, and update their predictions for the economy. For the past 24 months the Federal Reserve has raised short term interest rates at nearly every meeting. If you carry a significant amount of consumer debt you would be smart to evaluate how these changes will impact your credit cards, personal loans, and your mortgage.

Fixed Interest Rate Mortgage Loans

If your mortgage carries a fixed interest rate then the Federal Reserve changes will have no impact on your mortgage. Fixed interest rate mortgages offer the highest degree of safety from economic factors. The downside of a fixed interest rate mortgage is that they are more expensive; safety comes at a premium finance charge. If you currently have an Adjustable Rate Mortgage and are nearing the end of your introductory period, you might want to consider refinancing to a fixed interest rate mortgage.

Adjustable Rate Mortgage Loans

The main advantage of this type of mortgage is that during the introductory period the mortgage comes with an exceptionally low interest rate. It is important to note that the introductory rate is not your actual interest rate; as soon as the introductory period expires the lender will adjust the interest rate and payment amount to the current rate and add their markup. After the initial adjustment the lender will adjust the interest rate and payment amount at regular intervals. This is great if interest rates are declining; however, when rates are rising as they have been it can wreak havoc with your budget.

You can learn more about your mortgage options, including common homeowner mistakes to avoid, by registering for a free mortgage guidebook: “Five Things You Need to Know About Your Mortgage.”

To get your free mortgage guidebook visit RefiAdvisor.com using the link below.

Louie Latour specializes in showing homeowners how to avoid common mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing: What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.

Claim your free guidebook today at: http://www.refiadvisor.com

Mortgage Refinancing for Dummies

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Bad Credit Mortgages - Buy a Home After Foreclosure.

Because of the wide variety of mortgage lenders offering home loans to people with low FICO scores, it is very possible to secure mortgage financing with bad credit. After a foreclosure, few people are in a hurry to buy a new home. While waiting has its advantages, this is not a requirement. Here are a few tips to help buyers find a mortgage following a foreclosure.

What is a Foreclosure?

If you own a home, you are likely familiar with how foreclosures work. When a buyer purchases a home, they are required to make monthly payments to a lender. Unfortunately, situations arise which makes it difficult for some homeowners to maintain regular payments.

For the most part, lenders will not foreclosure if payments are a few days late. Moreover, foreclosures rarely occur for one missed payment. Some mortgage lenders are willing to assist borrowers who experience financial hardships. Yet, if payments stop altogether, or the mortgage is at least 90 days past due, lender can proceed with a foreclosure.

Bouncing Back after Foreclosure

Having a home foreclosed will have a negative effect on your credit. Nonetheless, there are ways to recover. If your goal is to purchase a home in the near future, there are specific steps that should be followed.

For starters, be patient and allow time to rebuild your credit. Even though several people are able to secure financing shortly after having a home foreclosed, these home loans carry high interest rates. In some instances, this may increase mortgage payments by as much as $200.

If possible, wait at least 12 to 24 months before applying for a new home loan. During this recovery period, obtain new lines of credit or maintain a good standing with current creditors.

Search for Sub Prime Lenders

If you are able to achieve a credit score of 680 or higher, it may be possible to receive a prime loan. If not, apply with a sub prime lender. These lenders service a multitude of loans for all credit types. Thus, if you have a bankruptcy, foreclosure, collection accounts, or too much debt, sub prime lenders can help. Here is a list of recommended Subprime Mortgage Lenders online. It's important to use a reputable lender online to make sure your personal information is secure.

If you are Buying a Home After Foreclosure let ABC Loan Guide provide you with lists of mortgage lenders. Also, check out their suggested companies for Poor Credit Home Mortgage Loans.

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