The first time I felt like an official grown-up was when I got my first mortgage. The entire process, from gathering information on my assets and signing pages and pages of documents, to stepping into my own house, was a big deal. Even though I had to reduce my shopping budget to pay for the mortgage, I was ecstatic. I could finally decorate the house however I wanted, and of course, get my own dog!That was seven years ago and since then, I've done one refinance and signed another mortgage when I moved into my current house. That means I have paid over 80 months of mortgage, with close to 50 months for my current house and I still have at least 300 months of payments to go. That seems like a lifetime, but I really don't mind.
I really do enjoy paying my mortgage. It is a big chunk of my budget and a huge amount of debt, and every time I look at the monthly statements it's depressing to see how much is allocated to interest versus the actual mortgage. However, it dereases my tax bill (except last year, ouch!) and it makes me take care of my house more. Granite countertop? Done. New patio and a fence in the backyard for the dogs? Done.
So month after month, I happily send a check to my mortgage lender. When I'm ready to move or to refinance, I'll be happy to complete my paperwork and sign pages and pages of documents.
Anyway, if you are in the process of looking to refinance or to find a new mortgage company, check out the top mortgage searches on AOL for some more resources. For example, did you know there are so many mortgage calculators out there? Besides calculating the usual information, such as how much mortgage you can afford, you can also calculate how much you'll save in taxes, if you should pay points or not and more.
Wherever you are in the process with your mortgage, good luck and I hope you'll be as content as I am when you send a check to your lender.
For more information on mortgage, go to AOL Money and Finance. Also search for mortgage on AOL Search.
Top mortgage searches on AOL Search:
1. Mortgage calculator
2. Mortgage rates
3. Reverse mortgage
4. Mortgage news
5. Mortgage loans
6. Mortgage companies
7. Mortgage insurance
8. Mortgage lenders
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See sponsored links for: mortgage, refinance, home equity loans.
Reader Comments (Page 2 of 3)
21. Now is the opportunity for consumers to really shop around for the best mortgages that DO NOT come from mortgage brokers or this on-line nonsense. Go to your local banks where at least someone is there day after day to deal with. The huge lenders DO NOT care about you, and their teasers, no fee lying bs WILL cost you. You will never get to talk to the same rep twice, you will be only a number, a mark to sell more products to, like life insurance, flood insurance anything they can peddle. Review your state laws regarding loans, check out consumer advocacy in your state, ask your neighbors if they work with anyone LOCALLY. Check with the attorney general's office about poor track records, etc. Desparate LENDING GIANTS WHO call themselves the nation's number 1 lender are the absolute WORST!
Posted at 10:57AM on Aug 28th 2007 by china
22. I'm glad you were at least able to get a house but the rest of your thinking befuddles me. I bought my house at a tax sale for very little cash. Yes, I had to do everything and still do but every piece of wood in the floor or wherever is mine and paid for free and clear. It needed everything but the joy of owning it and fixing it "my way" and without interest beats all! The telemarketrs are the funniest, they cannot believe I do not have a mortgage! I guess I am one of the smallest minority in America but I'll never be a bag lady!
Posted at 11:08AM on Aug 28th 2007 by Susie Stewart
23. owning a home is great when things are going well and you do not want to move, but in my case-i want to move, but will be unable to do so unless i plan on losing big time due to the current situation. the real estate agents are still demanding their big commissions, although the market is dead and they are not willing to compromise with the seller. so i am now in a no-win situation unless i can find an investor who is able to wait it out and then cash in.
i am in a nice area in las vegas-paid when the market was high and i am not stuck. any ideas?-sell my owner does not work-nor does going on-line listing-so who can come up with something?
Posted at 11:13AM on Aug 28th 2007 by sher
24. Here's my two cents: (1) stop paying rent, buy a house as soon as you can, and (2) get the shortest duration mortgage you can handle, and pay it off as soon as you can. I bought a house when I was 29, got a 15-yr loan, and paid it off in 13 years. I absolutely love being debt free. Also, buy the house you really need for your family, not some 5000 sq ft trophy house.
Posted at 11:20AM on Aug 28th 2007 by Dennis Kauffmann
25. i did not buy a trophy house-i just bought a the wrong time and for me-what turned out to be the wrong location for health and personal reasons. the townhome is located in a great area and is not fancy, but nice.where are the candidates on this issue we face- what once was the amercian dream has turned into a american nightmare. sommeone needs to step up to the plate.
Posted at 11:34AM on Aug 28th 2007 by sher
26. I am a loan officer with a mortgage company owned by a bank. I call people to refinance them when I find someone with a very high interst rate. I can help people with credit scores in the mid 500s. You would be amazed how many simply pick up the phone and hang it up without speaking or they say not interested and hang up. In these times, why would they not take two minutes to find out if I could truly help them? It boggles my mind why they would not see what is available to them. People really need to think before they react. I am calling them to offer them a service that might be able to save them thousands per year and they simple hang up without even hearing the details. Go figure.
Posted at 12:10PM on Aug 28th 2007 by Rich Day
27. I sold a home and the buyer could not qualify for the entire purchase price.. I carried a secured note for 15,000 for 3 years @ 7% interest.. The balloon payment was due 2 months ago.. I have sent them numerous letters that they are in default , but so far , NO CHECK in my mailbox ( by the way ,they paid the monthly interest payments for 3 years).. HOW can I collect the balloon payment? any suggestions ?
Posted at 12:25PM on Aug 28th 2007 by JACY
28. I need some advice, I have a 2000 sq ft home on 40.39 subdividable acres, I have a bonding company willing to give me a bond for paving, a parcel map is pending and if each parcel stays over 5.01 ac net then the state gives a dedicated well to each parcel. I would like to sell, each 5 ac parcel in this neighborhood sells for $150k-$165, so if it was parcelled, I could get alot more equity but I've decided to take the loss and sell the whole thing prior to parcelling for $699k and let someone else have the extra equity (and the process which overwhelms me) I've listed with real estate agencies but I don't feel like they are really working hard to sell it probably due to the downsizing and cost to advertise.....how can I see it on my own in an expedient and cost effective fashion? thx
Posted at 1:12PM on Aug 28th 2007 by Robin
29. Two points. 1:There are a lot of people in the mortgage business that are there to give you the "business"! Trust your lender and ask questions. If what he/she is offering is at, or nearly at, what you see and/or read about in the news stay with them. If you don't like what they are telling you try someone else but don't leave them because another lender "just happened to call". These types are experts at the old bait and switch game. If your lender trys to get you any loan other then what he said he could at the start beware! If you disclosed everything up front a good lender know exactly what you can and can not qualify for very soon after the process has started. Also, please stay away from those that advertise. (advertising cost money and you are paying for them to do that) There are many TV and Internet advertisers that are in the business of generating leads. They take the best of the clients and then they sell the other potential borrowers information time and time again. Most don't even require the buyers of that information to be certified lenders so anyone could be buying your personal data. A scary thought. If a mortgage company is any good they needn't buy your information (the lead). Your friends and coworkers will gladly give you the name of their lender if they were any good. Ask them. USE REFERRED LENDERS ONLY!
2: This mortgage meltdown you are hearing about is more dangerous then anyone is making of it. The government stepped in and is making some lenders reissue loans they made in good faith, to borrowers with marginal credit in the first place. These borrowers probably shouldn't have gotten loans in the first place at the rates they received. The investor was willing to give them the better rate because it was short term and thus less risky. In a coulpe years these borrowers could repair their credit, save additional funds, or whatever and refinance loan. BUT the borrowers knew full well that they would probably have to refinace in a couple of years going in to the loan! They all signed papers to that knowledge at the time they signed their loan documents, Then they even had three days to study those documents before the loan became final and could cancel the loan at that time. The problem is they didn't! Nor did they plan and save any money and most didn't repair the credit problems that put them in a position of needing the ARM loan in the firstplace. And they certainly didn't even think of the possibility of the marekt turning. So now they cried, "poor little me" and unfortunately, some government agencies listened. So now begins the meltdown because the investores were being put in a position of being accused of misleading these poor individuals. The FDIC stepped in and is forcing these lenders to "rewrite" these loans so the poor credit risk in the first place don't lose their homes. So these individuals are now getting prime loans they qualified for with subprime credit. The investor market is a traditionally conservative group. They do not like what is being forced upon them by the FDIC so they have, in unison, stopped buying, most of the loan programs that are not in the "prime" market. They have even tightened up the "prime" qualifications. A "prime" borrower is one with good fico scores, good debt ratios and a loan that is of a "safe" loan to value ratio, Usually 80% or less. Unfortunately this is causing a domino affect in the entire Real Estate industry. They have limited borrowers by effictively limiting the ability to qualify for a loan which has created a hugh surplus of houses. Basic supply and demand laws dictate the lowering of property values because of the over supply. This means the home owner with reasonably good credit now becomes a "subprime" borrower. Why? Because the home they are trying to refinance has had the value reduced. Now when they try to get financing the loan to property value is much higher then what the investors are willing to accept. (Higher then 80%)
The real danger I see is the end result of this money shortage. Now the investors have created a money shortgage. This is the exact opposit of the devaluation of property values. So as the housing values are going down the interest rates are going up. If not directly in interest rate percentage it definitely is in borrower qualification. This is a totally win lose situation for the investors, much of the funds, non USA generated, and a losewin situation for the American people. What could happen is going to be higher interest rates, across the board. Some of this interest money going to other countries economies. We all know how the natural gas companies created a shortage and the resulting prices we paid a few years back. And present day all you have to do is look at the price of gasoline. The gasoline companies continue to creat shortages to justify the outragous prices we pay every day. And much of this money is again leaving the countries in support of their economies.
Are the investors going to sell out the public and what is the government doing about it? Write your state and federal congressional leaders and demand help on both issues. Mortgages and gasoline. Simple NO HELP NO VOTE.
Posted at 1:15PM on Aug 28th 2007 by lendermike
30. The reason why we are in the market we are in is because: PEOPLE THOUGHT THAT GOING TO THE INTERNET AND GETTING A LOAN WAS JUST LIKE FINDING A BROKER TO GIVE YOU PROFESSIONAL ADVICE. The internet is for INFORMATIONAL purposes and does not provide a PROFESSIONALS ADVICE. Don't be stubborn with the most important assest you have and find someone who knows what they're doing to help you live comfortably.
Posted at 1:22PM on Aug 28th 2007 by David
31. There is a lot of hype about no one being able to obtain a flexible mortgage anymore, and most companies going out of business. Washington Mutual is still offering excellent programs and rates, and is planning to be in business for many years to come! Call me today to prequalify.... Julie 239-659-7368
Posted at 1:28PM on Aug 28th 2007 by integraj217
32. There are many unscrupulous mortgage brokers, however there are many honest and honorable ones as well. I for one take pride in finding my client the best possible deal from among over 200 lenders that we do business with. I love getting a fair deal and I enjoy doing the same for my clients. Many times I turn someone away when they shouldn't be getting a loan in their situation as it will put them in a worse position.
http://getyourloanwholesale.com
getyourloanwholesale@clarionmortgage.com
Posted at 1:45PM on Aug 28th 2007 by ShaneLevine
33. I own a cxustom home that I had built in 1999. My construction loan was $400,000 and I paid the General Contractor another $290,000 for ongoing changes, imnprovements and modifications, for a combines cost of $690,000. with an appreciated value in this area of 24% over the last 5 years, to reach a market value of $855,600 The custom lots near mine are presently selling for $400,000. However, I joined two of my custom lots and now have (two lots)3.4 acres of land with the house. If I take the cost of the home, plus the appreciated market value and add two cusatom lots at $400,000 each, I would have a market cost/value of $1,655,060.......However, there are no other properties that have sold in my area for more then $800,000 and it's very difficult to get a realistic mortgage apprasal on my home. Ther are new custom homes, very close to mine, that have been built, with construction costs ranging from $750,000 to $1,300,000 however. Any suggestions that can help me get an appraisal to match my cost/value?
Posted at 1:48PM on Aug 28th 2007 by Karl Hasmanis
34. Owning a HOME is the All American Dream. Stop paying rent and start investing in your future. There are brokers, banks, etc that will rip you off. My company has a great reputation, we work with our borrowers and explain everything and don't overcharge at all in fees. We have many programs that can fit most situations. If you have any questions, feel free to email me joanneh@preferredmortgagevancouver.com
Posted at 1:57PM on Aug 28th 2007 by Joanne
35. WHoa hang on there....I have financed 2 homes in the last 5 years. One in Florida and the other in Connecticut. All this advice is good but there is one flaw. IT IS WHERE YOU BUY THE HOUSE....
Take for instance, the same house in Connecticut (different shape, same size), $262,000.00. And in Florida $155,000. Taxes in Floriday, $1200 a year and that included the trash. In Connecticut, $4,000 a year and I have to pay the trash, water and sewer.
Even if you get a good fair interest rate, in Connecticut you will pay $1400 plust $400 for taxes. That is $1,800.00 and in Florida about $1,200.00 Total.
Your appraisal is less in Florida and is good for you to use. In Connecticut your appraisal you pay $300-$400 for and it is only good for the institution that is requesting it. Not transferable. (Something about the banking rules.)
So you see, even if you get a rate that is at 9% or or one that is at 5% it depends on where you live.
Did somebody say Doublewide, that is not a house. You don't get a deed to a trailer, you get a title from the Motor Vehicle department. And again, depends on where you live. :)
http://www.raysabb.com
Posted at 1:57PM on Aug 28th 2007 by raycsabb
36. Appraisers are paid by the home owner but the report is prepared for the lender or broker. The report has the broker / lendes name on it. Other brokers or lenders can't use the report without having it in their name. The law says the report can not be switched to another party without compensation. This doesn't mean the report can't be switched to a new broker or lender it means that you have to pay for it. Most of the time the appraiser charges a fraction of the amount originally charged. ($100.00-$150.00) The old days of an appraiser changing the lender 10 times as the home owner shopped the appraiser to lenders are over. appraisers were spending addition hours on reports they had already completed. It was a expense they shouldn't have to carry.
Posted at 2:16PM on Aug 28th 2007 by Scott Wellington
37. Things have definitely tightened up in the mortgage industry. I have had several clients get caught in the cracks of this correction and it has been tough. We have also seen other mortgage companies close their doors after years of business due to the investor pull outs. We pride ourselves on helping people find the absolute best scenario for their situation, whether it means they need to refinance, stay where they are, or rebuild their credit to enable them to make a possitive move in the future. I help people develope a plan to achieve their needs and goals. If anyone would like a no cost, no obligation consultation, feel free to contact us here at Gateway Mortgage Group in Roanoke, Va. We will be happy to discuss your situation and help you plan the next step, no matter what that is. Whether you end up doing business with us or not, we are here to help. Too many folks are caught in the whirlwind of this market correction and don't know what to do or where to go. We can help you figure that out.
Bobby Moses
Gateway Mortgage | Mortgage Planner
540.776.0312 ext. 1001 | fax 866.693.7432
2762 Electric Rd | Roanoke, VA 24018
Bobby@Gatewayloans.org |www.GatewayLoans.org
"Service set's us apart."
Posted at 2:41PM on Aug 28th 2007 by Bobby Moses
38. The opening comment has to be the best ever!I have never read something so funny in my life!!
Jason is one of those guys that thinks he is so much smarter then everyone else, when in fact, with statements like that you quickly find he is a moron! Some people rent because of their current financial situation and others, like yourself, rent because they are misinformed.
Jason, here is some advice. Walk into a bank, sit down and shut up. Let the mortgage specialist go over the reasons that your an idiot. You are paying someone's mortgage for them every month and they are loving you. You think you are saving money where in fact your landlord is getting rich off of you. I would say to talk to your parents about this but it seems they may have been under this idea too. Let your dad know when he gets off from being a car salesmen that you are going to the bank as a family.
Thanks,
Ben
PS- Thanks for the tax deductions for every cent I spend in interest on my mortgages!!
Posted at 2:41PM on Aug 28th 2007 by Ben
39. post #29:
I know a lot of real estate investors who may be interested in your property. Contact me and I may be able to connect you with someone who can help.
Bobby Moses
Gateway Mortgage | Mortgage Planner
540.815.2643 | fax 866.693.7432
2762 Electric Rd | Roanoke, VA 24018
Bobby@Gatewayloans.org |www.GatewayLoans.org
"Service set's us apart."
Posted at 2:54PM on Aug 28th 2007 by Bobby Moses
40. post #34:
Where are you located? I work with appraisers who are used to having to explain values for properties like yours. I may be able to refer someone to you.
Bobby Moses
Gateway Mortgage | Mortgage Planner
540.815.2643 | fax 866.693.7432
2762 Electric Rd | Roanoke, VA 24018
Bobby@Gatewayloans.org |www.GatewayLoans.org
"Service set's us apart."
Posted at 2:56PM on Aug 28th 2007 by Bobby Moses