Krayton M Davis and Matt Keegan wish to extend to you and yours happy and healthy greetings of the new year. We appreciate every single one of our readers who have found us since we launched the site in October 2007.

For 2008, we plan on picking up where we left off by offering to you solid information on how you can better manage your life. By offering you the tools and resources you need to make plans for the months and years ahead, you can spend time on other pursuits.

As always, we invite you to check the links on the sidebar which will take you to other sites managed by nBuy Associates. For instance, our SayLending site was recently revamped to feature updated information about debt relief, auto lending, and much more.

If you are a college student or planning to attend college, please visit our companion blog, SayCampusLife, for news and information pertaining to higher education.

Again, we thank you for stopping by and encourage you to subscribe to the blog, grab a feed and leave comments as desired. Happy 2008!

Tags: Consumer Financing, consumer lending, consumer loans, home refinancing, mortgage loans

If you are shopping for a home mortgage loan, then weighing the different choices available to you can save you thousands of dollars over the course of the loan. These choices generally include the loan type, length of the loan, your down payment, interest rate charged, fees, and lender selected. Of course, you don’t want to make a snap decision with your home purchase loan options as a lot of money could be riding on the line. Please read on for some tips on how you can save money on your next mortgage loan.

Get Informed

A little bit of research on your part can save you plenty of money on your next mortgage loan. If you plan on living in your home for the long term, then comparing the home purchase loans options available to you is essential to helping you save money.

Assuming that you qualify for and can afford home financing, you will find that the number of mortgage choices available to you are almost limitless. Your loan term can be for 15, 30, 40 even 50 years with some lenders offering 20 and 25 year term mortgages too.

Annual Percentage Rates are generally not that different from each other, although a savings of even just one quarter of one percent can result in a significant savings over the life of the loan.

Six Loan Types

The loan types, ultimately, can yield some of the biggest savings and generally fall under the following categories:

Fixed Rate Loans — The most popular mortgage lending option, a fixed rate loan means that your mortgage payment stays the same for the life of the loan. The amount you pay today will never change, but you will pay a slightly higher interest rate than the homeowner with a variable rate mortgage. Explore other options if you only plan on living in your home for the short term.

Adjustable or Variable Rate Loans — A lower rate and the ability to borrow more money are two of the chief reasons for homeowners to seek a loan with a variable interest rate. If you are planning to stay in your home for three years or less, than an adjustable rate mortgage is the best choice for you. On the other hand, long term homeowners may find that the constantly changing loan payments to be a source of uncertainty and discomfort.

Hybrid Loans — If you want the security of a fixed payment along with the lower cost of a variable rate loan, then a hybrid loan could be the best choice for you. With a hybrid loan, your interest rate stays fixed for a set number of years then adjusts yearly thereafter. Loans with a 5/1, 7/1 or 10/1 option means that they are fixed for the first 5, 7, or 10 years respectively and then adjust annually thereafter.

Interest Only Loans — Consumers seeking low monthly mortgage payments can turn to interest only loans to save money. With an interest only loan, your monthly payments reduce the amount of interest owed on the loan, but not the principle initially. For example, for the first five or seven years of the loan, the principle stays the same meaning that your $350,000 principle remains the same until the interest only time-frame has ended. The flip side of interest only loans is that you could lose money if your home’s value declines.

Minimum Payment Loans — The lowest monthly payment home mortgage loans are Minimum Payment Loans. Basically, you’ll make lower monthly payments for a certain length of time and afterwards pay a higher rate. Where housing prices are high, these types of loans have made homeownership a dream come true for consumers who might otherwise not be able to afford a home.

Zero Down Mortgages — In some cases, consumers can purchase a home with no money down. Typically government sponsored loans, zero down mortgages can be ideal for the consumer who cannot raise the capital to cover closing costs and the down payment. Variations of the zero down mortgage are those loans requiring 3 to up 20% down.

Get Empowered

Not every consumer is eligible for each loan type mentioned; restrictions apply and fees vary. Clearly, fully understanding the terms of your loan is important toward recognizing the advantages and disadvantages of your mortgage choice. An informed consumer is an empowered homeowner which is what you want to be when weighing your mortgage choices.

Tags: home purchase loans, mortgage lending, mortgage loans

You’ve found the home of your dreams, but buying the home depends on securing financing. Recent news that lenders have tightened up their requirements has you a bit nervous; even borrowers with good credit are finding it more difficult to get a mortgage.

Although credit has been tightening since the sub-prime mortgage fiasco blew up earlier this year, you can still get a home mortgage. Let’s take a look at some mortgage essentials to help you get started as you search for the right home mortgage.

What is a Mortgage?

A mortgage is a debt incurred by homeowners by means of a loan made by a lender covering the purchase price of the home minus your down payment. It is a contractural agreement which allows the lender to repossess your home if you default on the loan.

The Three Part Obligation Process

When you seek mortgage lending there are three components to the loan:

Principal: the original amount that you borrow with an obligation to repay the amount over a set term.

Interest: a percentage amount that you agree to pay the lender for use of the principal amount until the full amount is repaid.

Term: the length of time (generally in months) to repay the loan amount .

Over the course of the first years of the loan, most of the money paid toward the loan is on the interest while during the last years of the mortgage term the bulk of the monies covers the principal.

A Matter of A, B, C and D

Four grades of loans are available: A, B, C, and D. Buyers with good credit can get conforming “A” loans which offer the lowest and most favorable mortgage rates. The lower your credit rating the lower grade loan you are eligible to receive. Lower grade loans carry a higher interest rate and approval is harder to come by. With many lenders suffering stiff losses following the sub-prime meltdown, it has become more difficult to get obtain a home mortgage.

Some Points to Consider With Home Purchase Loans

The amount of money you will need to borrow is based upon your purchase price minus your down payment. Many lenders want to see you put at least 20% down, but some will allow less which will increase your monthly mortgage loan payments. You’ll pay a higher interest rate as the lender assumes a bigger portion of the risk associated with the mortgage loan. You may also be required to carry Private Mortgage Insurance (PMI) which will tack on a monthly charge to your payment.

Escrow is funds set aside by the mortgage company and paid by you to cover home insurance, taxes, and other expenses related to your home.

Points can be charged in order to secure a lower interest rate. For every point charged, you will be expected to pay 1% of the home’s purchase price at closing.

Closing Costs are paid to cover title search, attorney fees, taxes, documentation, and any other fees associated with the sale of the house. This burden falls on the buyer, but it can be negotiated with the seller or the bank may reduce or forego their portion of the costs related to the mortgage.

Finally, some loans will penalize if you pay off your mortgage fast; check the contract closely to learn what your obligations are and use mortgage calculators to compare the various mortgages available to you.

Tags: buying a home, home mortgage, home puchase loans, mortgage lending, mortgage loans