The average credit score in Colorado is 674. If you filed bankruptcy within the last two years, your credit score probably falls below this average. And that's okay. There are plenty of ways that you can boost your credit score to qualify for conventional loan rates on your Colorado mortgage refinance after bankruptcy.

Survey the Damage
If you want to qualify for conventional loan rates in Colorado, you need a credit score of at least 650. To see how close you are to this number, the first thing you need to do is get a copy of your credit score. This will allow you to see exactly how much damage your bankruptcy has done. There are several different companies who can provide access to this score for a small fee. The fee ranges from company to company, but is usually less than $20.

Take Out a New Credit Line
Before giving you a Colorado refinance loan, most lenders will take a look at any new accounts that you may have opened after your bankruptcy was discharged. If you have taken out one or more new credit lines and paid your balances promptly, the lender will consider you a responsible borrower and will be more willing to overlook your bankruptcy issues.

Pay Your Bills Promptly
The best way to improve your credit score after bankruptcy is by paying your bills on time. If you have Chapter 13 bankruptcy payments to make, do so promptly. If you have credit cards or loan installments, make sure they are paid within an appropriate time frame. A payment that is 30 days past due can seriously mar your credit report and impair your ability to get a Colorado mortgage refinance after bankruptcy.

Being able to buy that house you have always wanted probably means that you will need to get a mortgage. Another word for a mortgage is loan - which you usually get from a bank or other lending agency. Since most people are not able to buy their house with cash, a loan is the most common practice. Here are some things to help you understand mortgage basics.

Length Of The Mortgage

The size of a mortgage makes the length necessarily longer. Common lengths of mortgages can fall anywhere between ten and thirty years. This means, that if you pay according to the terms of the mortgage, that you will have it entirely paid off at the end of that time. Generally, the lower amount of payment you can afford, the longer the time you will need to pay off the mortgage.

Interest On A Mortgage

The interest rates on buying a house or property change every day - sometimes even more than once a day. It depends on the economy, and the area you live in. You need to shop around and get the lowest amount of interest that you can because even one percent over 30 years means a difference of over tens of thousands of dollars.

Two Types Of Mortgages

All mortgages will fall into one of two types. It will be either a fixed rate mortgage, or an adjustable rate mortgage. The fixed rate mortgage is one where the interest and payment amounts are "fixed." That means it is always the same until the mortgage is paid in full. The other, an adjustable rate mortgage, is, like the name implies - adjustable. That means that the amount of your payments changes in an unpredictable way - according to the economy. If the economy is doing well, then your interest rates on the mortgage are lower - and so are your payments. But remember, it may cover a thirty-year period. No one can see that far ahead. A bad economy also means that your payments can become very high - maybe even too high. These are excellent when the economy is doing well, but you may need to get another mortgage if the economy goes bad.

Paying Off The Mortgage

The best type of mortgage will enable you to increase your payments, or make additional payments in order to reduce the amount you owe. This means that you will be able to pay off the mortgage early, and save a lot of money. Most mortgages, however, have clauses in them that will limit how much you can pay extra each year, or may not allow it at all. You may need to negotiate with the lender in order to get this put in the agreement.

When going for your mortgage, the best thing you can do to help yourself is to understand as much as possible about mortgages. Then, with that knowledge, shop around and get online quotes so you can compare various offers in order to get the best deal.

Refinancing a mortgage will come up sooner or later in your mind - if you are buying a home. You hear about deals that your friends got, and you wonder if you could do the same. The truth is that it is more than possible - but it is not for everyone. There are individual and economic situations that apply that will determine whether or not it is the best way for you to go. Here are some thoughts to help you determine if you should consider it.

How Long Will You Stay?

Refinancing your home could be a good idea if you are planning on living there for a number of years to come. If, however, you think you might be moving in a couple of years, then it probably would not be to your financial advantage.

Refinancing will give you lower interest rates which will result in a savings - that is the good news. Fees are added to the refinancing process, like closing costs and points - that's the bad news. These fees that are attached usually means that it will cause you not to see any savings for the first three years or so, depending on how long you take the new mortgage out for.

What Interest Rates Can You Get?

When you are looking around to see if you can get a better deal, you naturally will consider the interest rate. Some say that the general rule of thumb is to try to get at least 1% lower than what you have now. This amount will add up to quite a lot of savings over the years. Shop around for the lowest rate you can get.

What Are Your Credit Ratings?

The best loans are given to those with the best credit scores. This means that if you want better terms on your loan, then you need to have a good credit rating. If your credit rating has slipped, it probably will not be a good time to refinance - because you will not be offered the rate of interest you want - if you are approved at all. Instead, it could profit you more to take the time to rebuild your credit first, or get a different type of loan.

How Long Should You Refinance For?

The length of time that you get your new mortgage for should depend on your financial ability. If you refinance for the long haul – as long as you can get, say 40 or 50 years, then it will not mean any savings for you. Hopefully, by now you have built up some equity in your home. By increasing the time, you are simply increasing the amount of interest that you are paying - meaning that it will take longer for you to get out of debt. You should try to keep it as short as possible, without stretching your finances.

How Does This Compare?

With every mortgage, there are many companies that will try to take advantage of the buyer. The only way you could possibly know that, though, is by comparison shopping and understanding the mortgage process. By getting several online quotes, and comparing the interest rates and the fees, you will be able to quickly see who is offering you the best deal.

If you are considering mortgage refinancing online with the Lending Tree website, you need to read this discussion first. Filling out Lending Tree’s contact form will result in overpaying as much as $1,300 for your next mortgage loan. Here is what you need to know about computerized loan origination junk fees to avoid overpaying for your next mortgage loan.

To understand how companies like Lending Tree make their money, click on the licenses and disclosure link at the bottom of their web page. Scroll down a bit and you’ll find a section entitled “GFE Addendum – Disclosure and Fee Acknowledgment." Lending Tree claims they do not charge you for their services, while this is only partially true, the fine print found on the licenses and disclosure page tells the whole story.

The Good Faith Estimate Addendum discloses the “Computerized Loan Origination Fee” you will pay when closing on your new mortgage. Your lender will charge you up to $1300 for filling out Lending Trees form. This is the fee you pay for using Lending Tree to find a mortgage loan. While Lending Tree is not charging you this fee directly, had you gone to the mortgage lender's website directly you would not be out of pocket $1300 at closing.

Lending Tree isn’t the only big named website that charges this hidden fee. How can you avoid paying “Computerized Loan Origination” fees? Do your own research and go directly to lenders websites without using a third party portal like lending tree. Closing costs and origination fees are expensive enough without third party companies like Lending Tree bilking you out of your hard earned money.

You can learn more about mortgage refinancing without overpaying by registering for a free mortgage tutorial.

To get your free mortgage tutorial visit RefiAdvisor.com using the link below.

Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing - What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.

If you are considering using an Adjustable Rate Mortgage to refinance your existing mortgage you need to understand the risk associated with this type of loan before signing up. Here are several tips to help you decide if mortgage refinancing with an Adjustable Rate Mortgage is right for you.

Adjustable Rate Mortgages can save you a lot of money if used correctly. Many homeowners rely on Adjustable Rate Mortgages to purchase their homes because of lower payments and the ease of qualifying. Many of these homeowners get into trouble because they do not fully understand how their Adjustable Rate Mortgages work and cannot afford the payments when their lender resets the loan. Here are the basics to help you understand how Adjustable Rate Mortgages work and the potential pitfalls you could encounter.

Adjustable Rate Mortgages are simply mortgage loans with a variable interest rate that changes periodically at an interval specified in your loan contract. Your Adjustable Rate Mortgage is tied to some financial index, like the prime interest rate for example, and the lender resets the loan to this index and adds their markup at regular intervals. This adjustment period usually takes place every year on your loan’s anniversary date. When the lender adjusts your interest rate your monthly payment amount change depending on the direction interest rates have been going.

Adjustable Rate Mortgages come in several different flavors with varying degrees of risk. You can choose an interest only or payment option loan; these loans have significantly more risk than a standard Adjustable Rate Mortgage. Here are some of the advantages and risks associated with Adjustable Rate Mortgages.

Adjustable Rate Mortgage Interest Rate Fluctuation

Choosing an Adjustable Rate Mortgage allows you to take advantage of lower payments when interest rates go down. Falling interest rates can result in significant savings for savvy homeowners; however, rising interest rates result in rising payments. Mortgage interest rates are nearly impossible to predict; if you have a low tolerance for financial risk Adjustable Rate Mortgages are not the loan for you.

Adjustable Rate Mortgages: Introductory Interest Rates

Adjustable Rate Mortgages typically come with introductory rates that are significantly lower than the actual interest rate. During the introductory period your monthly payment amount will be significantly lower; if you need short-term financing this introductory period could save you a lot of money. Many homeowners fail to understand that this lower payment is not their actual payment amount and are shocked to see their payment go up significantly when the lender resets the loan.

You can learn more about your mortgage refinancing options including costly mistakes to avoid by registering for a free mortgage tutorial.

To get your free mortgage tutorial visit RefiAdvisor.com using the link below.

Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing - What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.

Interest only mortgages can be an excellent tool for a short-term financial need. It is important to know what you’re getting into with an interest only loan before you borrow. Here are several tips to help you keep you out of trouble when financing your home with an interest only mortgage.

Traditional mortgage loans have monthly payments that are amortized for the entire duration of the loan. This means every month that you make a payment, part of that payment is applied to your finance charges in the form of interest, and part is applied to pay down the principle loan balance. Interest only home loans are different than traditional mortgages in that they do not have fully amortized payments during the interest only period.

Interest Only Mortgage Payments

For the first part of your mortgage loan, the interest only period specified in your loan contact, your monthly payment is based solely on the amount of interest due that month. Because there is no loan principle included in your payment amount, interest only payments are much lower than traditional mortgage loans. Savvy homeowners can use interest only payments to meet a short term financial need; however, problems arise when homeowners that do not fully understand interest only mortgages use them for the wrong reasons.

Disadvantages of Interest Only Mortgages

Many homeowners use interest only mortgages to purchase their homes because of easy qualification and low payments. Many of these homeowners don’t realize the interest only payments only last for a short period of time. At the end of the interest only period the lender converts your loan to a standard Adjustable Rate Mortgage and will add the loan principle back into your payment. When this happens your entire loan balance will be amortized for the remaining duration of your loan. Suppose you took out a 30 year interest only mortgage for $250,000 with a five year interest only period. At the end of the interest only period your payment will be based on paying $250,000 back over 25 years. This results in a significantly higher mortgage payment.

You can learn more about your mortgage refinancing options including costly mistakes to avoid by registering for a free mortgage tutorial.

To get your free mortgage tutorial visit RefiAdvisor.com using the link below.

Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing - What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.

There are many factors that go into obtaining the financing you need to buy a home. Coming up with the cash for your down payment is one that most people don’t realize.

Coming Up With Cash for Your Down Payment

The old saying is cash is king. This may or may not be true in our digital age. That being said, cash definitely has a place in your mortgage financing. Specifically, the more you can come up with, the better. It will lower your loan to value ratio, which makes it more likely you will get the loan. If you put down 20 percent or more, you will also avoid paying for mortgage insurance, a general request from lenders. Finally, the more you can put down now, the less you will owe and the lower your payments.

When it comes to putting together cash for your down payment, the obvious issue is finding it. Traditionally, people have just saved and saved until they have enough. This is still the basic approach, but there are some other resources you might look to for the money.

If you save for retirement with a 401k plan, you may be in for some good news. If you have worked for the company for more than two years or so, you can borrow against your account. Every 401k plan has its own regulations, so you need to find out from your employer what you can and cannot due. In general, you can borrow up to 50 percent of your vested interest. You need to be careful when doing so. The borrowed amount has to be paid back over five years with interest. The interest payments are not deductible, but you are at least paying yourself instead of a lender.

Staying with the retirement planning theme, there is another area you can use for cash. The federal government views home ownership as a savings mechanism for you and me. Since we historically don’t save money well, the government is motivated to get us into housing which naturally creates equity for us so long as we pay our monthly mortgage. To this end, you can now borrow $10,000 from your IRA to buy a home. This is only true if you are a first time buyer. If you are married, you and your spouse may be able to each borrow $10,000 against your IRAs, but make sure you check with an accountant first as the rules are complex.

Coming up with cash for your down payment may seem a difficult task. As you can see, however, there are more options out there then you might first assume. Check around to see your options.

Finding enough cash to make a solid down payment on the home of your dreams is often a difficult task. With home prices at all time highs, coming up with 10 or 20 percent equates to a large amount of money. Well, the seller might just help you if you ask.

Ask The Home Seller For Help With Your Financing

As you know, we have just finished up one of the hottest real estate markets every recorded. With massive appreciation rates and incredibly low interest rates on loans, it was a seller market through and through. Alas, those heady days are now over and done with. For many a buyer, this presents some interesting financing options.

During the sellers market, homes were being snatched by buyers before they were even appearing in the MLS listings. Sellers could sit back and come up with an outrageous price and the offers would practically flood through the door. Any buyer that didn’t show up with financing arranged was laughed out the door. The seller had all the leverage, so why mess about?

With the current market, sellers know longer have the leverage. Now, they are having problems getting interest in their homes, much less offers. The market is flooded with too many homes. On top of this, interest rates have risen which reduces the potential pool of buyers. In simple terms, the tide has turned. A seller that might have laughed one year ago if you asked them to help with financing will probably be listening closely this year.

What is seller financing? It is simply a situation where the seller agrees to take part of the purchase price as a second mortgage on the property. Let’s say you want to buy a home for $300,000. You have 10 percent or $30,000 for the deposit. The lender, however, will only loan you 80 percent of the value of the home. You need to come up with another 10 percent. In such a situation, the seller will agree to finance you by taking a second on the home for the 10 percent. The repayment terms are up to negotiation, but this is how it happens in a nutshell.

At one point in time, seller financing was views as a fairly aggressive, rare form of financing. These days, it is very common given the high prices of homes on the market. If you are short on the deposit, make sure to address the issue with the seller of the home.