More people lose their home from a lack of knowledge rather than from a lack of money. This is the second in a series of four article for people that have fallen behind in their payments. Please read on and get the assistance that you need:

1. Try To Increase Income or Reduce Expenses On a Long-Term Basis. Remember unless your habits change, anything you do will be a short-term fix. You will have to make some long-term changes so that the situation can be fixed and improve. This will require that more money is coming in or that your lower your expenses.

To Increase your income you may want to look at getting a part-time job or starting your own business. If you choose to get a part-time job just make sure that you will be making more than it will cost you to have the job. Deduct gas, day care and any other expenses that you will incur from getting this job. Many people end up spending more in total cost on their part-time job than they make.

If you consider starting a business, try to start one that requires little or no income to get started. You may be asking how you can start your business with little or no money. There are a lot of ways. Start as an affiliate with one of the online companies. You don’t even need a website. All you need is an email account and you are in business.

To reduce your expenses, you will need to know where you money is going. Buy a pad and write down everything you spent money for a week. You can also use the envelope method. Just list all the categories that you will be spending money on in a month and place that amount in the envelope. Once the envelope is empty, you are out of money for the expenses.

This is important because unless you increase your income or reduce your expenses you will find yourself right back in the same situation. On your second time through the system, you may not have all the options available that you had the first time.

1. Try To Understand the Foreclosure Process. Make sure you do your research about what can really happen in your state. When you do need to seek advice you can ask intelligent questions. You will also have a better idea when someone is trying to lie, con or scam you.

This can be a very emotional time for you. It is easy to slip into denial. By researching the process in your area, you will be able to deal with more facts than emotion.

You can obtain this information online or by going to the library. There is a wealth of information just for the asking. Make sure that you take advantage of it

What Are Homeowner Loans?

Though usually called homeowner loans or personal loans for homeowners, the truth is that these loans are better referred to as home equity loans. The name refers to the secured nature of the loan as home equity loans are backed up by the equity you’ve built on your home.

Home equity is the remaining value of the property that is not affected by mortgages or liens. The difference between the value of the property and the mortgage loan amount that is still owed, constitutes equity. After subtracting the remaining liens (if present), the amount you get will be the home equity loan security.

As with mortgages, the lender can resort to take legal action against the property to recover his money if the borrower fails to meet the monthly payments. However, the legal processes in both cases are essentially different as mortgages have a priority on the property over the home equity loans.

Fast Approval Process

When it comes to timing, as opposed to mortgage loans and refinance mortgage loans, homeowner loans have instant approval. Most of the paperwork needed is already prepared due to the previous mortgage loan and thus only some simple checks have to be done.

Depending on the complexity of the property’s appraisal and the condition of the borrower’s credit report, the loan approval process can take any time between 72 business Hs. and two weeks. Some lenders take more time than others when evaluating applications so you might want to ask the estimate delay before applying if you are very short on time.

Lower Rates, Higher Amounts

Since this loan is requested against property, the amount of money you can obtain is significantly higher than other forms of personal loans. However, it will always be limited to the amount of home equity available in your property. There are some lenders willing to lend over this limit but since in that case only part of the loan is covered, the interest rate charged will be higher.

Nevertheless, in both cases, the interest rate charged for homeowner loans is significantly lower than that of unsecured personal loans. This is due to the lower risk involved for the lender when lending against a property’s equity. For larger loan amounts, requesting a homeowner loan instead of an unsecured loan can save you thousands of dollars over the whole life of the loan.

If you are concerned how rising mortgage interest rates will affect your monthly payment amount, refinancing your loan could protect you from economic uncertainty. There are many advantages to refinancing your home loan, regardless of interest rates. Here are the basics of refinancing your home loan to help you choose the best mortgage offer.

There are a number of factors affecting your mortgage that you have no control over. Interest rates are one such factor. If you purchased your home using a risky interest only or option adjustable interest rate loan and are nearing the end of your introductory period, you might want to consider refinancing before your mortgage payment becomes unmanageable. There are several types of mortgages you will want to consider when refinancing depending on your financial objectives. Here are the basics of mortgage loan types.

Fixed Interest Rate Home Loans

If you purchased your home with an Adjustable Rate Mortgage you probably chose this loan because of the low payment amount during the introductory period. The problem with Adjustable Rate Mortgages is that when this introductory period ends, the lender will adjust you interest rate and monthly payment amount. If your budget is stretched to the limit during the introductory period, you run the risk of falling behind on your payments when the lender adjusts your loan and losing your home at foreclosure. By refinancing your mortgage to a fixed interest rate home loan you will have the financial peace of mind knowing what your payment will be every month and the ability to budget accordingly.

Hybrid Adjustable Rate Mortgages

Hybrid home loans offer the best of both worlds. There is an introductory period that can last as long as ten years where your loan has a fixed interest rate. At the end of your introductory period the loan is converted to an adjustable rate mortgage at the prevailing interest rate. One of the main advantages of a hybrid home loan is that the initial interest rate will be lower than that of a comparable fixed rate loan. If you plan on selling your home or refinancing at the end of the fixed rate period, a hybrid mortgage could save you money.

Your home is a valuable asset. You can tell the home equity folks know this by the numerous ads aggressively promoting home equity loans and home equity lines of credit. They suggest you put your home asset to work. But is it a good idea for you? And, if so, which should you choose?

The advertisements are seductive, but remember "all that glitters is not gold." Both loan options use your home as collateral for a loan. There’s nothing basically wrong with this idea other than the fact that you may be greatly risking your most valuable asset.

A home equity loan is a lump sum advance in the form of a second mortgage on your home. You borrow a specific amount for a certain period of time and pay back the balance with interest in installments.

A home equity line of credit, on the other hand, is a lot like a having another credit card. The lender agrees to lend a specific amount of money over an agreed period of time and the borrower can draw against this line of credit whenever they want.

Both programs use the equity in your home as collateral. Therefore, since the loan is secured, you usually get a lower interest rate than with a credit card. This is the main reason home equity loans are being touted as a great way to consolidate debt. Another benefit is that interest paid on these loans could be deductible on federal and state tax returns.

Sounds good doesn't it? But, in many ways, the disadvantages can outweigh the advantages

Your home is a valuable asset. You can tell the home equity folks know this by the numerous ads aggressively promoting home equity loans and home equity lines of credit. They suggest you put your home asset to work. But is it a good idea for you? And, if so, which should you choose?

The advertisements are seductive, but remember "all that glitters is not gold." Both loan options use your home as collateral for a loan. There’s nothing basically wrong with this idea other than the fact that you may be greatly risking your most valuable asset.

A home equity loan is a lump sum advance in the form of a second mortgage on your home. You borrow a specific amount for a certain period of time and pay back the balance with interest in installments.

A home equity line of credit, on the other hand, is a lot like a having another credit card. The lender agrees to lend a specific amount of money over an agreed period of time and the borrower can draw against this line of credit whenever they want.

Both programs use the equity in your home as collateral. Therefore, since the loan is secured, you usually get a lower interest rate than with a credit card. This is the main reason home equity loans are being touted as a great way to consolidate debt. Another benefit is that interest paid on these loans could be deductible on federal and state tax returns.

Sounds good doesn't it? But, in many ways, the disadvantages can outweigh the advantages

A decade or two earlier, when people need mortgage they would just walk down to their neighborhood bank and apply for the loan. The bank, if feels your credit rating is high and has cash, it would lend you on its own terms and conditions. But the situation is completely changed now. With the popularization of internet and online marketing, the change in consumer behavior is corollary. Now consumers seek to avail the best services from the comfort of their home with just clicks of mouse.

Almost every legitimate lending organizations and private mortgage providers finds it indispensable to have web presence and many of them really generate good business through their websites. On the other end, users or visitors of the websites also find it quite easier and comfortable to seek loan services online. They just type mortgage or related keywords in various search engines, like: Google, Yahoo, etc. and a large number of results displaying mortgage providers and related websites comes on screen.

Many of the mortgage websites have online form meant to collect the visitors’ information, which would include personal information along with types of loan required. The companies then get in touch with seekers through phone, email, etc. and extend its willingness to provide desired loans.

Seeking mortgage online has multitude of advantages including but not limited to:

Get complete information about various mortgage categories The users get complete information about the various mortgage categories available in market. This helps seekers to go for the best mortgage plans and save a good amount of money, which otherwise would not have been possible due to lack of knowledge of mortgage industry.

Precisely Calculate Difference in Repayment Amount The mortgage websites are normally incorporated with currency calculators, which help in calculating repayment plans, knowing what you will have to pay under different rate of interests, what amount you will actually pay as interest at the end of loan term, etc. The calculators let you know the complete mathematics of your loan.

As monthly payments on variable-rate mortgages are starting to swell, many Americans have found a way to defer the day of reckoning. They have turned to variable-rate mortgages in recent years to afford a home as prices escalate. Refinancing with fresh variable-rate mortgages, for now, are successful in keeping keep monthly amortizations low. However, due to the fluctuating nature of variable-rate mortgage refinancing, their payments will likely rise even higher in the future.

Typically set at synthetically low rates during the first years of the loan, variable-rate mortgages are then reset at par with the prevailing market interest rates. The stake for borrowers was that interest rates would linger at low levels.

Recently, the first big wave of the mortgage boom is peaking as more than $400 billion worth of variable-rate mortgages, or about 5% of the total outstanding mortgage debt, will readjust in the current year 2006 for the first time. This figure is based on a projection made by Loan Performance, a research firm. In 2007, another $1 trillion of mortgage loans will readjust. When the readjustment takes place, a typical borrower, say with a $200,000 variable-rate mortgage could witness a nearly 25% increase in monthly payments as the mortgage adjusts from the introductory rate of 4.5% to the prevailing rate of 6.5%. Equivalently in total dollars, the monthly amortization will climb from $1,013 to $1,254. Confronting such imminent plight, many borrows are refinancing into their second or third variable-rate mortgage rather than paying more now, as mortgage industry experts confirm and loan data indicate.

So far, the number of borrowers that opt for variable-rate mortgage refinancing is relatively small. However, mortgage industry analysts anticipate that the numbers will surge in 2007. Quite commonly, these borrowers are putting off any eventual shock of higher payments by another two to three years, if not longer.

For now, this refinancing boom is alleviating apprehensions that rising interest rates and higher monthly amortizations would induce some borrowers into foreclosure or coerce them to sharply cut back on other spending. Consequently, consumer spending may endure contrary to what some economists had expected.

Nevertheless, mortgage refinancing also corresponds to a doubling-down on a stake that housing prices will continue to go up especially in hot real estate markets such as Miami, Tampa and Sarasota. A value of a home that falls closer to the amount of the loan could curb the ability to refinance. As a result, this may prompt the homeowner to either sell the home or invest more in it.

Notwithstanding, borrowers still believe that loans make sense because many of them plan to move to another home in a few years or earn more. They refinance again, often using the same assumptions they held when they made their earlier loans.

Though it has been around for decades, the use of variable-rate mortgages has skyrocketed in the last several years, essential in triggering the housing boom by letting people borrow more than ever before.

Variable-rate mortgage loans come in many forms. While most have low and fixed introductory rates, other forms such interest-only option also let borrowers pay only the interest portion of the debt, or better yet, even less than that. After the introductory period ends, lenders readjust towards bigger payments while ratcheting up interest rates.

Buying your first home can be a time of many questions. For example, how do you even get started?

The steps to buying a home are simple. If you take the time, you will find the process faster and less stressful. The key is to avoid jumping into something you aren't ready for yet. Preparation is the key.

The first step is to get your personal finances in order. You need to know how much you can afford to spend. Take the time to prepare a budget, if you don't already have one. When figuring how much you can afford to spend on housing, don't forget the additional costs that come with ownership. You won't simply have a mortgage payment, you will have property taxes, homeowner's insurance, repair and maintenance costs and the possibility of PMI.

A good indicator of how much you can afford is your current rent payment. If you already have trouble making ends meet each month, you probably can't afford any higher a monthly mortgage payment than your rent currently is. Take your monthly amount and enter it into an online calculator to show you what the overall mortgage you can afford is.

Once you have an idea of how much you can spend, take the time to look over your credit report. Almost everyone is guaranteed to have a mistake on their report at one time or another. In just ten years, I have found two on mine. Check your report early enough to be able to correct any mistakes. Contrary to popular belief, checking your own credit report will not raise your credit score.

But having too many lenders pull your report will, so don't apply for a mortgage with every lender you are considering. Go ahead and spend the money and find out what your credit score is. The lender will most likely be reported a score close to what you find on the internet -- they can range up to 50 points in difference. It is a good idea to know what your credit score is, so that you know where you stand as a borrower.

Next, research the type of mortgage you want. The best mortgage decision for any borrower is a 15-year, fixed-rate mortgage with at least 20% downpayment. I realize that this is hard to conform to. So bare bones, you need to have at least a fixed-rate mortgage and as large a downpayment as possible. This is the most sound financial choice for most borrowers. However, there are some advantages to other mortgage options, so be sure that you do your research.

When you finances are in order, now is the time to shop for a lender. Ask your friends, family and coworkers for recommendations. Make sure your list includes local and national lenders, though keep in mind the differences that may be seen in service. Ask each of the lenders on your list for a rate quote on the type of mortgage you want. You should expect them to all be in the same ballpark. Beware of those that are way under the rest, they may not be the same in terms.

Getting commercial real estate loans approved is almost always complex and frequently difficult. Business borrowers need to realize that there are several commercial mortgage loan situations which can be especially difficult to get approved. Examples of eight difficult business loan situations are described to illustrate two key points: (1) these difficulties are not uncommon; and (2) these difficulties can be overcome in most cases.

Difficult Commercial Mortgage Loan Situation Number 1:

A commercial loan that needs to be closed in 60 days or less. It is not unusual to discover that a traditional lender considers six to nine months "normal" for commercial loan underwriting. Obviously this will act as a severe constraint if a commercial borrower is trying to buy a property that the seller wants to close in two to three months. If quick funding is essential, the commercial borrower should contact a non-bank business lender where most commercial loans will close in 45 to 55 days.

Difficult Commercial Mortgage Loan Situation Number 2:

A commercial loan that won't work without long-term financing. What is long-term financing for a commercial loan? Some commercial lenders view 3-5 years as the longest period before a commercial loan will be subject to a balloon payment. If that sounds short-term instead of long-term, most non-bank business lenders can arrange 25-year to 40-year commercial real estate loans for commercial properties. Longer-term financing will often be the critical difference that facilitates a successful business investment (especially because mortgage payments will be reduced dramatically).

Difficult Commercial Mortgage Loan Situation Number 3:

Providing financial data to a commercial lender after the loan is closed. Some commercial loans will have covenants stipulating that the lender must receive financial data even after the loan closing and that the loan can be recalled (forcing the borrower to repay early) if the audit of this data is not satisfactory to the lender. In stark contrast to this, commercial loans via non-bank commercial lenders based on Stated Income will not require business plans or income verification either before or after the loan is closed.

Difficult Commercial Mortgage Loan Situation Number 4:

Borrower is self-employed or income is paid on a commission, bonus or incentive basis that is somewhat erratic and difficult to document properly. Non-bank commercial lenders using a Stated Income business loan program will not require tax returns or any income verification. They also will not require commercial borrowers to sign IRS Form 4506 (which authorizes the lender to obtain tax returns directly from the IRS), a form routinely required by many commercial lenders.

Difficult Commercial Mortgage Loan Situation Number 5:

A borrower wants to refinance a commercial property and use $500,000 to $1 million from the proceeds to buy another property. Most commercial lenders will restrict the maximum cash that can be taken out of a refinancing, with a normal limit of $100,000 to $250,000. It is also not uncommon to encounter restrictions on the use of the cash. With a commercial loan via most non-bank commercial lenders, the commercial borrower could receive unrestricted cash up to one million dollars and use the proceeds without restrictions.

Difficult Commercial Mortgage Loan Situation Number 6:

A borrower wants to use a substantial amount of subordinated debt (a seller second or other secondary financing) to reduce the amount of cash needed to purchase a commercial property. Many commercial loans will not permit a seller second or other forms of subordinated debt. With a commercial loan via most non-bank business lenders, a commercial borrower can obtain Combined-Loan-to-Value (CLTV) ratios up to 95% with subordinate financing (including seller seconds).

Difficult Commercial Mortgage Loan Situation Number 7:

Sourcing and Seasoning of assets or ownership. For a purchase, commercial lenders will frequently want documentation about where the down payment is coming from (the source, so having limitations about where the funds are coming from is called sourcing). Commercial lenders will frequently have requirements stipulating that the down payment funds must have been in a specific account for a specific period of time, often 3-6 months or longer (this is called seasoning because it is tantamount to requiring that the funds have matured by being in the same place for a while). Seasoning of ownership is similar to seasoning of funds, except this requirement involves the minimum time someone has owned a commercial property before they can refinance the property. Most non-bank commercial lenders do not have any requirements or limitations involving either sourcing/seasoning of funds or seasoning of ownership.

More people lose their home from a lack of knowledge rather than from a lack of money. This is the second in a series of four article for people that have fallen behind in their payments. Please read on and get the assistance that you need:

1. Try To Increase Income or Reduce Expenses On a Long-Term Basis. Remember unless your habits change, anything you do will be a short-term fix. You will have to make some long-term changes so that the situation can be fixed and improve. This will require that more money is coming in or that your lower your expenses.

To Increase your income you may want to look at getting a part-time job or starting your own business. If you choose to get a part-time job just make sure that you will be making more than it will cost you to have the job. Deduct gas, day care and any other expenses that you will incur from getting this job. Many people end up spending more in total cost on their part-time job than they make.

If you consider starting a business, try to start one that requires little or no income to get started. You may be asking how you can start your business with little or no money. There are a lot of ways. Start as an affiliate with one of the online companies. You don’t even need a website. All you need is an email account and you are in business.

To reduce your expenses, you will need to know where you money is going. Buy a pad and write down everything you spent money for a week. You can also use the envelope method. Just list all the categories that you will be spending money on in a month and place that amount in the envelope. Once the envelope is empty, you are out of money for the expenses.

This is important because unless you increase your income or reduce your expenses you will find yourself right back in the same situation. On your second time through the system, you may not have all the options available that you had the first time.

1. Try To Understand the Foreclosure Process. Make sure you do your research about what can really happen in your state. When you do need to seek advice you can ask intelligent questions. You will also have a better idea when someone is trying to lie, con or scam you.

This can be a very emotional time for you. It is easy to slip into denial. By researching the process in your area, you will be able to deal with more facts than emotion.

You can obtain this information online or by going to the library. There is a wealth of information just for the asking. Make sure that you take advantage of it

Home mortgage refinancing—such a technical sounding word for a newbie in the real-estate market scene. Having the right set of information about it guarantees anyone to make the right decisions when it comes to paying for a home property. Here are some basic things one should learn about home mortgage refinancing. A house can be bought at 0% down payment. It may be overwhelming to believe this fact but there may even be government agencies, particularly the Department of Housing and Urban Development (DHUD), which will assist closing home costs. Although such options are not available to just anyone, first-time homeowners and homebuyers of inadequate resources are advised to carry out some research. For those who do not fit to any of the categories listed in DHUD’s website, it would be worthwhile to inquire a mortgage broker or lender about the loans that they offer. For example, an “80-20” loan means that the borrower is allowed to take out a first mortgage for 80% of the contract price and a home equity loan for the remaining 20%.

Mortgage brokers can be very useful for many people. A good mortgage broker can render advice about the types of mortgages that would best suit you. With their knowledge and experience about home mortgage refinancing, they can probe through loan products of many lenders and effectively find the optimal rate and deal. But similar to many professions, conflicts of interest can plague the mortgage broker industry. One way to avoid being afflicted with such issue is to research on topics about, as well as actually seek out for, ethical mortgage brokers. If you personally know one such as a mortgage broker friend, use the acquaintance and trust to your advantage.

Nevertheless, not everyone needs the assistance of a mortgage broker. The best use for a mortgage broker’s service is when you are loaded with financial issues, such as a poor credit history. In the absence of such financial concerns, a mortgage broker is not at all required. For someone who has a clean credit slate and plans to put at least 20% down payment on a new home, a call to a few banks to ask for the best rates suffice.

One can also find even more attractive home mortgage refinancing rates from a local credit union or from the Internet. If you are not a member of a credit union, joining is possible through a family member, workplace or an association to which you belong. The Internet is a great arena to search in as well.

There are some websites, equipped with mortgage payment calculators that will crunch many interesting numbers for you. Through some sample calculations, one can learn exactly how much of each mortgage payment will move towards the principal of the loan against the interest. For example, only about $200 of a $1,200 monthly mortgage payment goes toward the principal in the first year (the remaining $1,000 being the interest), compared with about $800 in the 25th year.

There are also several home mortgage refinancing options that one can avail. The most popular of these, especially in hot real estate markets today, is the variable-rate mortgage, which comes in several varieties. In a nutshell, a variable-rate mortgage is characterized by an interest rate that fluctuates every year. However, for somebody who is pretty certain of not leaving the home for just a few years, a scheme such as a “5-1” variable-rate mortgage, which offers a fixed introductory rate for the first five years, then readjusts each year after that, can be availed. While 30-year fixed-rate mortgages can offer as low as around 6.2%, “5-1” variable-rate mortgages offer in the 5.8% range. This translates to a saving of $100 every month or equivalently, $1,200 every year. There are also other schemes like “7-1” and “10-1” variable-rate mortgages.

Because of the fluctuating nature associated with the term “variable-rate”, first-time renters may interpret a variable-rate mortgage scheme as being very risky as interest rates can skyrocket over one or two years. In reality however, variable-rate mortgages are generally restricted in how rates can increase each year.

More than a third of homeowners predict they will be nearing retirement before they own their own home, new research suggests.

Responding to a One Account survey, 36 per cent of homeowners predicted they would be at least 60-years-olds before they paid off their mortgage.

A further 20 per cent didn't expect to fully pay off their mortgage until some time in their 50s, with many also complaining that mortgage commitments were impeding on other areas of their life.

More than two in five claimed not to be able to save because of their mortgage, while nearly one in five 25 to 29-year-olds said it was forcing them to delay starting a family.

However, Debbie Milsom from One Account questioned why homeowners were finding their mortgage such a burden.

Paying off a mortgage should not mean that people have to put their life plans on hold, Ms Milsom said.

She added: It is worrying that homeowners perceive that it will take them until they are in their 60s before they pay it off when they should be spending this time preparing financially for their futures.

Ms Milsom reminded homeowners that there are often flexible solutions for managing payments.

Homeowners with overly expensive payments may also find remortgaging can help to reduce their monthly commitment.

As less people are putting money into pensions, more could begin looking at remortgaging to ensure economic stability during their later years.

Figures released by Moneyfacts have shown that personal pension returns have fallen by as much as a half in the last decade.

The news means that even if Britons are putting the same amount of money into their pension pot every year, their average with-profits pension fund could be half what it would have been in 1996.

These latest figures should serve as a powerful reminder that securing a comfortable retirement will only be possible for those individuals who actively monitor and manage their own pension provision, warned Richard Eagling, editor of Investment, Life & Pensions at Moneyfacts.

The research from Moneyfacts could cause more people to consider other options of financing their retirement, with taking out a remortgaging and downsizing their homes one method to increase the amount of money available in later life.

Applying for a home loan for first time mortgage borrowers can be a daunting and confusing task. An alphabet soup family of words is used: FHA, HUD, VA, and more can describe a loan, an agency, or some other plan. How do you know which one is right for you? Well, for starters the Federal Housing Authority of FHA doesn't issue loans, but they do back them. With this in mind, many savvy mortgage companies gear their businesses to helping you obtain these loans especially if conventional financing it out of the picture. Should you work with an FHA lender? Sure, especially if you want to jump into the housing market with some government assistance.

The big advantage in an FHA back mortgage is that the risk of lending money to you is transferred from the lender to the FHA. If you have bad credit, no credit, or simply not enough money to put down on a home, you may still qualify for an FHA backed loan whereas a traditional loan not backed by the FHA could cause you to be turned down.

When visiting a mortgage broker or shopping online for a broker who has FHA experience, you will quickly learn a few things about these types of government backed loans:

Down payments can be extra low, as little as 3% of the home's value versus 5% through conventional loans. In addition, the FHA can require the seller to pay for part of your closing costs while allowing most of the remaining closing costs to be wrapped in the loan. This is particularly helpful for the person who has no spare cash to pay beyond the down payment. You won’t be required to take out private mortgage insurance either which always adds to the cost of a loan.

Another feature of an FHA backed mortgage is that even the 3% figure can be funds that were borrowed or gifted from a relative or friend. Thus, if you don't even have a dollar to put down on a home, then other people's money can come to the rescue.

Yes, check with a mortgage company familiar with the FHA and how this particular program works. A home that wasn't affordable to you conventionally could now be within your reach thanks to the help of a qualified mortgage professional who is familiar with the ins and outs of the FHA.