Daily Investment Tips

If you have an underwater mortgage, i.e you owe more on the mortgage than the home is worth, you can still refinance your underwater home. Some underwater homeowners with government-backed mortgages might be able to refinance through federal programs, such as the Home Affordable Refinance Program.

Lenders or Underwater Mortgages

The Home Affordable refinance program or HARP is US government backed program and it is only provided through government lenders.

1. Fannie Mae
2. Freddie Mac

Those looking to refinance through programs offered by Fannie Mae and Freddie Mac, the government buyers of home loans, will first need to find out who holds or services their mortgage so they can determine whether they qualify.

If your loan is owned by Fannie or Freddie, you may qualify for the Home Affordable Refinance Program, or HARP. Some 2.5 million to 3 million homeowners may be eligible to use HARP, according to government estimates — provided, among other things, that they have not been late on their payments more than once in the last 12 months.

Be carefull when trying to get underwater mortgage refinance

Apart from lenders such as Fannie and Freddie other banks have come up with underwater mortgages refinancing option. But be careful when dealing with them because they might take advantage of your situation to give you a bad deal.

written by Constantine Njeru \\ tags: Banks, Fannie Mae, Freddie Mac, Harp, Home Loans, Lenders, Mortgage, Refinance Mortgages, underwater mortgages

The best way to get credit or loan from the mainstream lenders is to have a good FICO score. FICO credit scale runs from 300 points to 850 points; the higher the score, the better your credit standing.

FICO credit scores of under 620 is considered poor and it means obtaining loans and credit cards with reasonable terms difficult.

While a FICO credit score above 760 means you can get the best and lowest interest rates.

Tips to Improve Your FICO Credit Score

Get a free copy of your credit score from the three major credit bureaus. Read the reports thoroughly and find if they have outdated information. If there is incorrect information, file a dispute with the credit bureaus.

Start paying your debts on time. Credit bureaus report late payments every month. Every time they report your late payment the lower your FICO credit score gets. Start paying your debt on time and you will see gradual rise in your FICO credit score.

Focus on paying off the credit card debt. Call your creditors and try to renegotiate the debt. If you call them and tell them your problems and offer a realistic repayment plan they will be glad to listen to you and make accommodations.

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When you have separate loans, Auto loans, credit card loans and student loans you pay interest for each loan. You can consolidate this loans into one and be able to reduce your monthly payment.

Home Equity Debt Consolidation

One way of reducing the monthly interest paid is to take out a home equity loan.A home equity loan has three advantages

A lower interest rate: Currently the rates for home equity loans are in single digits. Some experts estimate rates on home equity loans and lines can be lower than credit card rates by 7-10%-or more!

Tax savings: Interest payments on home equity loans or lines are potentially tax deductible, but credit card and auto loan interest payments are not. Please consult your tax advisor about the deductibility of interest with a home equity loan or line of credit.

Time savings : Make a single payment to your debt consolidation home equity loan or line rather than multiple payments to many lenders.

written by Constantine Njeru \\ tags: Auto Loan, Auto Loans, Consolidation Loan, Credit Card Loans, Credit Card Rates, Credit Time, Debt Consolidation, Debt Loan, Digits, Home Equity Loan, Home Equity Loans, Interest Payments, Interest Rate, Lenders, Loan Interest, Loan Payments, Loans Auto, Single Payment, Student Loans, Time Savings

Mortgage owners who cant keep up with monthly payments are making a drastic decision by walking away from their mortgages. Mortgage companies refer to it as strategic default.

Walking away from a mortgage can be in your own best financial interest, after all big real estate companies do this every day. But before you make that decision make sure you are familiar with your states rules on mortgage defaults. Some states are pro borrowers while others are pro lenders.

Some Risks and Cost associated with walking away from a mortgage

1. In certain states, a borrower can be sued and personal assets can be subject to a deficiency judgment.
2. Once a mortgage goes into default, a borrower’s credit rating is severely tarnished, making it more expensive, if not impossible, to qualify for any new form of credit.
3. anything that involves a credit review, such as obtaining auto insurance or getting a new job, can be complicated.

Before you make the decision to walk away from your mortgage consider the above cost. Everything in life has risk

written by Constantine Njeru \\ tags: Auto Insurance, Borrowers, Credit Rating, Deficiency Judgment, Drastic Decision, Financial Interest, Insurance, Lenders, Mortgage Companies, Mortgage Defaults, Mortgage Mortgage, Mortgages, New Job, Personal Assets, Real Estate Companies, Risk