3 Mortgage Mistakes You Can Avoid

The mortgage market in today's world is pretty chaotic, at best. Rates are ridiculously low, and many homes are worth less than the mortgages they secure. People are still losing their homes left and right, but qualified borrowers are being denied loans every day. It's no wonder potential and current home owners alike are confused about mortgages. I found this great article from inmanNEWS titled "3 mortgage mistakes you can avoid," which I thought would be great to share with you all to try and clear things up a bit. The mistakes are:

1. Failing to try to refinance because you're upside down.
At last count, nearly 11 million Americans were upside down on their homes - meaning they owe more in mortgage payments than the home is actually worth - and that's about 23% of all American homes. With interest rates having dropped to historic lows, more than 10 million Americans have refinanced their mortgages since 2009. But there are still many homeowners with negative equity feeling trapped in the 6, 7, or even 8 percent interest rates because they're unable to refinance.

The fact is, there are multiple options for lowering your interest rate and monthly payment if you're upside down. Banks are increasingly amenable to simply modify existing mortgages to render them less prone to default and foreclosure - especially when the homeowner is trying to recover from a financial hardship, and especially with upside-down loans (which are particularly liable to strategic default).

2. Walking into the bank branch to get a mortgage.
Unless your bank happens to be a neighborhood credit union or one of the few large banks that ranks highly in customer satisfaction, you'll likely not be satisfied with the speed, customer service or assertiveness of a mortgage banker you meet just walking into the branch. But if you work with a mortgage broker or a private mortgage banker, chances are good you'll get someone who understands that the long-term health of their business depends on you and clients like you getting a good deal in a timely manner.

Also, if you work with a mortgage broker whose company also has its own bank, you get the best of both worlds: a professional who will shop lots of banks' offerings to find the best options for you, and someone who can coordinate your transaction via a small pool of local, experienced appraisers. Many large banks use appraisers who don't know the area, which can kill your deal in the long run.

3. Thinking you're stuck with it for 30 years.
Some people avoid mortgages simply to avoid a 30 year debt. Others are stuck with a 30-year loan because the 15-year mortgage payments were too steep. But the fact is, you control when you pay off your mortgage, and it doesn't take a lottery or inheritance windfall to pay yours off sooner than later.

Some people pay half their mortgage payments every two weeks, which results in a full extra payment every year and can pay your mortgage off as much as five years early. Others just pay an extra $100 or so whenever they can and apply it to the principal. Some apply paycheck raises over the years or the amount they would use to extinguish a credit card debt in an effort to pay the mortgage off early.

What to take away? As a borrower, you have much more power than you think - from exploring all available options to being aggressive about paying off your home sooner rather than later. Either way, be clear on your personal goals for your mortgage, get educated about your options and get assertive about making them happen -- now.

** Be sure to check out the original article at InmanNEWs.com.

Home Loans

I just wanted to share a quick article with you entitled "Fed Imposes $85M Penalty Against Wells Fargo."

Essentially, Wells Fargo was hit with this fine for leading customers into high-cost loans and also for falsifying income information on home loan forms. So to everybody out there about to take this big step in their life: MAKE SURE YOU KNOW WHO YOU'RE DEALING WITH!!! Loans and mortgages can follow you for a lifetime, so make sure you trust the people you're working with to recommend what's best for you and not their pockets! Because unfortunately, although a lending company or bank is well-established, it doesn't mean they are trustworthy.

Texas Man Buys House for $16

This is a story taken from The Consumerist.

"That unappealing smell could be the stench of jealousy, after a man uses the law to his advantage and snags a $300,000 house in Texas for a mere $16. Now his high-falutin' neighbors are all cranky that he might get away with such a steal.

KHOU.com out of Texas brings us the story of the man who moved into a foreclosed home and filed some paperwork, along with a $16 fee, in the town of Flower Mound, and could end up with his McMansion if he lives in it for three years.

Kenneth Robinson's new neighbors say he's a squatter, but he says he is just using the law to his advantage. After the previous owners walked away from the house when it was in foreclosure, the mortgage company went out of business. So Robinson moved in after researching 'adverse possession,' a little-known Texas law.

He printed out an online form and filed it at Denton County courthouse for $16 and was granted rights to the house. The home has no electricity or running water, but Robinson just set up camp anyway. The law says he gets exclusive negotiating rights with the original owner. If they want him out, they have to pay off the mortgage debt and the bank would have to file a lawsuit.

Robinson doesn't think that's likely, and after three years, he can ask the court for the title to the home. In the meantime, he posted 'No Trespassing' signs after his neighbors tried to get him arrested for squatting. Cops can't remove him because home ownership is a civil, not criminal matter.

'If he wants the house, buy the house like everyone else had to,' says one neighbor. 'Get the money, buy the house.'

Or, just pay $16 and still get the house."

My Firsts

This week marks two firsts for me, my first day at Landmark and my first experience in blogging. I have never been one who is good with words, let alone making my words interesting for others to read, so here it goes.

Recently, my husband and I decided to refinance our 30-year mortgage into a 15-year mortgage. There are a lot of people that are hesitant about refinancing because of the new closing costs that might be applied. However, it is important to remember what a 15-year mortgage could do for you. These are just a couple of the reasons my husband and I decided a refinance was right for us.

We were able to lower our interest rate. Especially in today’s market the interest rates are lower than ever if you can qualify.

We will be able to pay our home off faster. Obviously, the loan is cut in half, but a 15-year loan allows the equity to build faster than on a 30-year mortgage.

We will be able to save thousands of dollars in interest over the life of the loan. Just by switching to a 15-year mortgage and lowering our interest rate my husband and I will save close to $100,000 in interest alone during the life of the loan.

So whether you have been thinking about refinancing or it has never crossed your mind, it is something to definitely consider