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.

Refinancing your mortgage loan can be a very good way for you to save money if you can secure a lower interest rate. Decreased monthly payments or shorter loan terms can really provide you with an opportunity to save money and build your financial future. However, to take full advantage of a refinance, it is absolutely necessary to find the lowest interest rate possible, and the best loan terms that you can. Following, is an overview of the top five places to search when you are looking to refinance your mortgage.

1. Credit Unions: In order to secure a refinance, with a credit union, you must first become a member. Refinance rates offered by credit unions are generally competitive with the terms you would receive from a mortgage broker, and online lenders. So this is a very good option if you can find a local credit union that you are eligible to join.

2. Finance Companies: Finance companies are great if you are a homeowner either with no credit or bad credit. It is important to note that you will be assessed more fees and a higher interest rate when you choose to refinance your mortgage through a finance company. These rates will be generally higher than if you went through a bank, a credit union, a mortgage broker or through an Internet mortgage company.

3. Mortgage Brokers: Mortgage brokers are middlemen who work with numerous lenders. Because of this, they are often able to obtain the best mortgage rates. Brokers are good to use when you have poor credit because they have access to all kinds of lenders. Be sure to remember, that mortgage brokers receive a fee for their services, so that may or may not determine what type of loans you are quoted. So remember to shop around.

4. Online Mortgage Companies: Online mortgage companies are great way to get free comparison quotes with the least amount of work. Often times, you can simply submit your information and competing lenders will either give you a call or provide their best quotes. These companies typically can provide you with the lowest rates due to the low overhead costs of doing business online.

5. Banks: Using a bank to refinance your loan probably works best when you have good credit. If you have credit problems, a bank may allow you to refinance your loan through them, but might sell your loan to another company. So banks are probably not the best option if you are attempting to refinance with credit problems.

There you have it. Five great places to look when you are ready to refinance your mortgage. Be sure to take your time and find the refinancing option that works best with your budget, your goals and your level of comfort.

If you are a homeowner with poor credit and need to refinance your mortgage loan, there are many options available to you. In times past, bad credit was seen as a barrier to obtaining a mortgage and more recently having poor credit meant you would pay a lot more. In today’s mortgage marketplace you can find many just as many competitive loan offers as a homeowner with good credit if you do your homework. Here are several tips to help you refinance your mortgage with poor credit without overpaying.

Doing your homework and researching mortgage lenders will eliminate most of the frustration and costly mistakes homeowners with poor credit experience when refinancing their mortgage loans. Everyone wants a good deal when refinancing their mortgage; however, the overwhelming majority of homeowners overpay for their loans regardless of credit rating. People overpay for mortgage loans because lenders take advantage of their lack of knowledge regarding the retail mortgage marketplace. Mortgage loans are products just like toaster ovens; if you adopt a toaster oven shopping mindset when refinancing your mortgage, you will save yourself a lot of money.

What’s a homeowner with poor credit to do when refinancing their mortgage loan? The answer depends on the severity of your credit problems. If your credit can be salvaged by paying down the balances on your credit cards and making on time payments for at least six months, you could still qualify for refinancing with a traditional mortgage lender. If your credit problems are too severe or you do not have time to rebuild your credit prior to refinancing, finding a specialty “bad-credit” mortgage lender may be your only option.

Bad credit mortgage lenders are often called “sub-prime” mortgage lenders. These lenders cater to homeowners with credit challenges and many offer competitive interest rates. When applying for a mortgage from sub-prime lenders it is extremely important to carefully comparison shop to avoid overpaying. There are a handful of bad credit mortgage lenders that resort to predatory lending practices in order to boost their profits. Careful comparison shopping will help you avoid these predatory mortgage lenders.

You can learn more about improving your credit score and comparison shopping for the best mortgage when refinancing by registering for a free mortgage guidebook.

A mortgage loan usually is the largest transaction in our clients’ lives. With that in mind, it also usually is one of the scariest. To put clients at ease, we as mortgage professionals should teach them every good and bad aspect of the loan process. By doing so, we prove ourselves as trustworthy, position ourselves as experts, incorporate other professionals into our circle and let our clients know how it benefits all parties to send referrals our way.

Building Trust By explaining the loan process and the challenges with clients’ situations, we establish competence in their eyes. With this open line of communication, we help build trust with our clients. For them, this is what can separate us from other loan officers. Furthermore, we build loyalty throughout this process, which usually translates into more referrals. Clients are much more likely to do business with people they like and to whom they are loyal. It is important, however, to handle clients’ trust with kid gloves. Once we have earned their trust, we should do everything to maintain it. Stressing the importance of honest, ethical business practices in our communication as well as through our actions will cultivate lasting relationships that will assure repeat business as well as referrals

Becoming the expert Our clients are thirsting for our information, and we can quench that thirst by providing them with reports and consultations. By answering clients’ questions, we go a step beyond gaining their trust and also become their experts.

Think about a time when you may have needed an expert — such as a doctor, mechanic or electrician — for a special service. In our dealings with them, they often convince us that their services are unique. Our clients also should have a feeling of dependence on us as experts in the mortgage field. If we, as loan officers, don’t do things to set ourselves apart as experts, we are virtually inviting our clients to see what else is out there. No loan officer likes to be shopped around or have a client negotiate fees. We also shouldn’t take for granted that our clients know everything about mortgages that we do.

Joining forces We can create an image of professionalism and credibility by using reports, specialized software and PowerPoint presentations. Teaming with other professionals also can add measurable substance to our presentations. By partnering with financial planners, insurance agents or real estate agents, we not only provide clients with more-comprehensive education, but we also introduce them to other relevant financial professionals. It is one thing to educate clients on the best ways to manage their debt through home mortgages. It is another to expose them to other experts who can ratify our strategies.

On the other hand, we also could be providing these other financial professionals with leads. They will see us as a source of business and return the favor with referrals from their client base. Meanwhile, we now help our clients view us as the most-comprehensive and educated mortgage professionals around and increase the possibility that they will refer their friends and family to us.

Coaxing referrals As we educate our clients about the loan process, we need to educate them about giving us referrals. They should know how important they are to our business as well as to our ability to provide the best service. We also can offer incentives to referral sources such as reduced origination or fee discounts. By doing this, we are showing our appreciation for the referrals — and we probably aren’t paying as much as we would for marketing and advertising. If you look at your business from your client’s perspective, you can see why someone chooses your business. You also see why someone would refer business to you. There has to be a compelling reason far beyond the canned “We give great service.” The service should be excellent, but it should not be what differentiates you from your competitors. We all should strive to give great service.

There are many other ways to offer clients something compelling. We can invest in our business by producing free reports or give clients books to increase their knowledge. If this does not work, though, we need to adjust our paradigm until virtually every client with whom we meet has a strong desire to do business with us, regardless of our fees. It is incredibly important to educate clients and be completely honest in all dealings. This not only will help close more deals without being “shopped,” but it also will help us earn more referrals.

Acceptable Sources

One

Money you have in a bank account. Yes, they will verify the money you have in a bank account. You will need to provide copies of your bank statements (all the pages of the statement are required).

Two

Money received as a gift. They will want a signed letter from the gifting party verifying it is a gift and no repayment will be made. Most lenders require it to be notarized also. All parties must sign this letter including the one receiving the gift and those who are providing the gift.

Three

You can borrow money against real estate, stocks and bonds, land or any asset with equity. This includes second mortgage on real estate. But you must be careful with borrowing money this way because it increases your debt ratio and may lower the amount you can borrow. You can also borrow on your 401K plan, but it is frowned upon by many lenders.

Not Acceptable Sources

One

Borrowing money from family and friends. This would be considered an unsecured loan and that is a no no. This is not a good idea.

Two

Money you have stashed under your bed. No, they want a paper trail of where the cash came from.

Your best bet is to speak with a knowledgeable Home Loan Advisor who will answer all your questions and steer you in the right direction.

Hope you enjoyed reading this article,

Richard Bonomo

When looking to take a loan out a one’s home, look at all options available. Refinancing is a way to lower a monthly mortgage payment and save over time by paying a lower interest rate. A Home Equity Line of Credit is slightly different, but is still considered a loan. When a person owns of home, they may borrow on the equity to pay for anything they want to spend the money on. Most people save this for emergencies. Unlike a traditional loan, a HELOC is a line of credit. This means that the amount a person qualifies for might be over what a person actually borrows. There are many advantages to either of these loans.

Refinancing your Loans. By refinancing, a person can save money over time. Depending on how much they owe on their home, they can have extra money to use for college, repairs, and other expenses. They will still make monthly mortgage payments, but the payments will be smaller because the amount of time on the loan has been lengthened. This is a disadvantage to refinancing. If people are considering moving within five years after refinancing, then this loan may not be the best choice for them. Also, refinancing should only be considered if a person can get an interest rate 2% or lower than their current rate. Since the market fluctuates often a person could be taking a gamble. One week the interest is lower and after a person applies for a loan, it could go back up.

Choosing a Home Equity Line of Credit. A HELOC loan should be considered when a person wants a line of credit that they can access for emergencies or home repairs. This loan is paid back monthly in addition to a mortgage payment. People who are careful with their money and know how to use it should consider a HELOC loan. These loans are oftentimes tax deductible and can be taken out for more than what a person owes on their home. The only drawback is when a person goes to sell their home; they will need to sell it for at least the amount of money taken from the HELOC account.

Do you need to pay your college tuition fee? Does your home need massive repairing? Did the addition of a new baby in the family lead you to think of getting a bigger family car? Taking out a home equity loan may be the quickest and most practical solution to your sudden financial needs. However, you need to know that while taking out a loan with your home as collateral is not as simple as it looks.

A home equity loan does not come for free. You will have to pass certain documents, get through credit rating standards, and pay a variety of fees to get started.

What fees are these?

A home equity loan's costs consist of interest rates and transaction expenses, also called closing costs, or the rates linked with the successful closing of a home equity loan deal. These include lawyer fees, application fees, credit reports, title search fees, notary fees, insurance fees, property appraisal fees, loan document preparation fees, and other closing expenses.

Normally, closing expenses average at between 2% and 5% of the amount you loaned, so you should expect not to get everything you borrowed initially. Be careful of mortgage lenders that advertise no closing cost deals, because there is definitely no truth to this.

Whenever you take out a home equity loan, there is a price you will need to pay for the convenience of getting money at once. If the company says it offers no closing costs deals, it is likely that it has already factored the fees into the interest rate. If you're thinking of borrowing a huge amount, don't go into these kinds of deals. However, it should be relatively harmless if you're only planning to take out a small value.

In addition to the above mentioned fees, you will also have to pay so-called points on closing. Points are service fees you pay at only one time when the deal is sealed. They are related to interest rates, so the more points you pay, the lower your interest rates will become, which is not really a bad thing, when you think about it.

To be able to understand and appreciate the presence of points, mention it in dollar terms. For example, instead of saying you are paying three points on your $20,000 home equity loan, you can say you are paying $600 in points. This way, you will have a better grasp of the amount you're shelling out, and you can more effectively keep track of your cash outlay. Simply referring to your costs in terms of small value 'points' can cause you to lose track.

The bottom line is simple, taking a home equity loan has many good sides, the advantages of relatively low interest and the ability to use money that is backed by your equity value is a good thing and can be very useful when in need of college tuition fees or a home improvement loan, the disadvantage here is that it is your home and that if you do not make sure that you pay this loan it will be taken from you, so this is only for people who know that they can make those loan payments and make sure they have enough coming in to cover for it.

Cash out mortgage refinancing is the process of taking out a new mortgage for a greater amount than you owe on your existing loan. The difference between your old mortgage and the new loan is the amount of cash you get back at closing. Cash out refinancing is an inexpensive way of borrowing against the equity in your home. Here are several tips to help you decide if mortgage refinancing with cash back is right for you.

Cash out mortgage refinancing has many advantages over other types of home equity loans. The main advantage is that you will only have one monthly payment to make once you’ve refinanced the mortgage. Because your home is secured by one loan instead of two, you will qualify for a lower interest rate than if you had taken out other types of home equity loans. You can use the money you get back for any reason; common reasons include home repairs and renovations, debt consolidation, and paying for your child’s college education.

Mortgage lenders typically allow you to borrow up to 100% of your homes value; however, if you borrow more than 80% the lender could require you to purchase Private Mortgage Insurance as a condition of loan approval. Private mortgage insurance can be expensive and could add hundreds of dollars to your monthly payment amount. Before agreeing to pay this insurance make sure you understand how it will affect your payment amount.

Mortgage refinancing is not without risk. When you refinance your mortgage you start the amortization schedule from the beginning and the majority of your monthly payment is applied to interest. Because mortgage loans are “front loaded” with interest payments, very little of your payment amount is applied to loan principle in the early months of the loan. Another risk of cash out refinancing is that if your borrow 100% of your equity and the value of your home drops in a declining housing market, you could end up owning more than your home is worth.