As with your first home mortgage and all major purchases, you need to shop around when considering a reverse mortgage to ensure that you are getting the best rate available. Talk to your family and friends, use mortgage calculators online and preview rates on various websites to be well on your way to finding some great mortgage rates for your reverse mortgage.

Before you begin your search for the perfect reverse mortgage rates, you should determine what kind of reverse mortgage you want and that will work best for you. There are several options in payments such as taking a lump sum payment or monthly payments. It is important that you know all the details to know what will be in your best interests. For example, if you take your payment as a lump sum you will not be entitled to any interest rates whatsoever. This is just one of the many factors you need to consider in your quest for a great reverse mortgage with excellent rates.

Check out a reverse mortgage calculator online. Places like the AARP website have a calculator that is free and to use you simply answer four questions about your age, the age of your spouse, the value of your home and provide your zip code. In short order, the calculator will crunch some numbers giving you an estimate of what reverse mortgage rates you should get.

While an estimate is great, in order to really know the nitty-gritty details, you need to talk to a lender who will give you specific rates relevant to your unique situation. To find a lender you can trust, ask your family and friends for recommendations and then contact the multiple companies until you find one that has the reverse mortgage rates you want and that you feel comfortable working with to secure your reverse mortgage loan.

It seems like refinancing has become very popular in recent years due to the low interest rates currently available. Many people who bought their homes several years ago at a 9 or 10 percent interest rate have happily saved thousands of dollars by refinancing at 7% interest rates or lower. If you choose to refinance your second mortgage, you may also be able to shorten the length of your loan and pay the same monthly payment but at a lower interest rate.

A second mortgage is a secondary loan that is additionally secured by the same property as the first mortgage. Typically, a person may take out a second mortgage to help purchase another home or to get cash out of the equity accrued on the home to pay high-interest debt. Second mortgages usually have 5 to 15 year terms. If you have a second mortgage at a higher interest rate, refinancing now while the interest rates are lower may be an excellent way to save money over the course of your loan.

If you are contemplating the refinance of your second mortgage you should take out a mortgage that you can lock into a fixed rate with set terms that allow for non-variable payment for the length of your loan.

If you decide to refinance your existing second mortgage, look for a lender that will be able to work with you and explain everything you need to know about refinancing clearly, thoroughly and accurately. The goal to refinancing is to save you money over the course of your loan. A great way to accomplish this is to look for an interest rate that will enable you to make the same monthly payment for a shorter duration of time. Know what your lender’s closing costs will be and be certain that you understand the specifics and necessity of each and every closing fee and expense.

They're absolutely everywhere. Home buying guides and articles that all give potential home buyers information on how to prepare for the home buying process. And with a few exceptions, they all read pretty much the same:

* Find a Realtor
* Look at several houses
* Negotiate with the seller

While all of this may be good advice, none of it addresses the single most important aspect of the home buying process, the mortgage. I mean let's face it, you could find a new dream house for every day of the week, but if you can't get the money to buy these houses then you're just wasting time. However taking the time to get your financing pre-approved before you go house shopping will make your shopping experience much easier and improve your negotiating power dramatically.

So what exactly do I mean by getting your financing pre-approved? Full pre-approval means that an underwriter from your lender has reviewed your application, your credit, and your income documents to determine how much money that they would be willing to lend you for the purchase of a new home. They would then issue you a credit approval letter which states the maximum loan amount, interest rate, terms, etc. These pre-approvals are usually good for anywhere between 20 and 30 days.

Now when you go shopping for that new dream home, you have an exact price range that you know you are approved for and (figuratively speaking) you have your check in hand. This will help speed up the home buying process by eliminating all of those houses that you simply cannot afford to buy. Also, you will improve your negotiating power with the seller by showing them that

* You are a serious buyer
* You have your financing in order and are much more likely to close on your contract should they accept your offer.

In some cases you may even be able to get the seller to accept less than what they originally asked for their home simply because they know that you have the financial ability to close on the transaction.

As you can see, it is important to prepare for your mortgage before shopping for a home. This principal holds true whether you're a first time home buyer or a seasoned real estate investor.

Now let's discuss for a moment how a lender will review and evaluate your loan file. The person in charge of reviewing and approving or rejecting your loan request is called the underwriter. When an underwriter looks at a loan file, they are trying to determine one thing:

"How much risk does this loan present to the lender?"

If the loan is too risky, then it is rejected; if it is within acceptable risk perimeters, then it is approved with certain interest rates and terms offered.

Your Personal Credit

One of the most important elements of your mortgage file is your personal credit. Even if your loan is approved, it is still assigned a degree of risk. The higher a lender's level of risk, the higher the interest rate offered for that loan. A borrower's credit is usually the best indictor of the lender's risk on a particular loan. Credit is graded "A, B, C, or D." These letters usually line up with your credit score.

* "A" grade tends to be scores of 680 and up; with several, previous well established credit accounts and a good pay history.
* "B" grade tends to fall between scores of 620 to 680. Sometime referred to as Alt-A, this credit grade may show some late payments or possibly even a small open collection account.
* "C" grade covers scores between 580 and 620. More commonly referred to as sub-prime, this credit grade usually has some problems in recent history (several late payments, maxed out credit lines, some open collections, or even a judgment).
* "D" grade covers scores of 580 or less. Borrowers with recent bankruptcies and foreclosures as well as large numbers of collection accounts and late payments usually fall within this credit grade.

"A, B, and C" credit can usually obtain financing, depending upon their entire financial picture. Interest rates and terms will generally get worse the lower your credit grade is. "D" credit borrowers usually have a very hard time find financing and even if they can get a loan approved, they have to put up a large down payment and accept very high interest rates to get the deal done.

Documentation

The next area of your loan file that we'll discuss is the level of documentation that you will provide the lender. The purpose of providing documentation is to show the lender that the information you put on your loan application, for employment, income, and assets, is correct and valid. There several acceptable documentation levels available for borrowers. Here is a list of some of those levels and what is verified (or documented) with each.

* Full Documentation (Employment, Income, and Assets are all verified thru your documentation)
* Stated Income (Income is accepted as stated on the loan application; Employment and assets are verified)
* No Ratio, AKA No Income (income is not disclosed on application; Employment and Assets are verified)
* No Doc (Employment, Income, and Assets are all accepted as stated on loan application; nothing is verified).

Generally the less documentation you can provide, the higher the risk your loan will pose to the lender and the worse your interest rates and terms will be.

Full Documentation will provide you with the best rates and terms as well as the best chance for getting your loan approved. The documentation needed for this level include:

* W-2's for the last two years (full tax returns if you're self employed)
* Your last two pay stubs (YTD profit and loss statement if you're self employed)
* Your bank statements for the last 2 months

If you have this documentation available to you, then it is always recommended that you use this documentation level.

Income/Debt to Income Ratios

Simply put, you can only buy as much home as your income will support. If you make $25,000 per year, don't expect to be able to purchase a $150,000 home, unless you have a 30% to 35% down payment. Your debt to income ratio (DTI) will be one of the key items that the underwriter will look at when evaluating your loan file. DTI is calculated by taking your total monthly debts (car loan payments, credit cards, student loans, child support, alimony, etc), plus the extra debt of the proposed mortgage payment, and dividing it by your gross monthly income (before taxes income). The purpose of this is to see if your current income can handle the extra monthly debt of the new mortgage. "A" paper lenders like to see DTI's no higher than 36% to 38%; "B" credit lenders will usually allow up to 50% and sub prime lenders ("C" credit grade) will allow up to 55% DTI.

Assets

While passive assets (real estate holdings, long term mutual funds, etc) will make you look all the better to an underwriter, what a lender is really interested in is your liquid assets (in other words, your cash on hand). Do you have enough ready to spend cash available to cover the costs of your loan plus have enough left in the bank to cover 2 to 6 months of mortgage payments. Even if you are obtaining a no down payment loan and all of the costs are being paid by the seller, it is still necessary for you to have a few months worth of reserves sitting in the bank. Regardless of whether the lender requires it or not, it is an excellent idea to have yourself a safety net in case you run into some hard times financially.

Shopping for a new home can be a lot of fun, but let's face it; having to go thru the mortgage process can take that fun out of the situation for many. That's why it is important not only to understand how your mortgage request will be reviewed, but to also take care of that mortgage request before you go shopping. Having the knowledge of how much home you can afford and your mortgage is already taken care will make the home buying not only smoother, but that much more enjoyable as well.

When looking for an Ohio home mortgage you should consider your options and pick a mortgage services provider that can provide you with friendly, professional, and caring Ohio home mortgage services you deserve.

The three situations in which you would like an Ohio home mortgage:

* Buying a home

* Building your dream home

* Refinancing your existing mortgage

And when you are looking for an Ohio home mortgage you should consider all of the mortgage rates that are available.

Current Ohio Home Mortgage Rate for a one year ARM:

• * 1 ARM 5.25% - $250 closing costs

The 1 yr ARM for certain Ohio mortgage lenders is a very low rate 5.25% with a very low closing cost of $250. If you find this ARM in Ohio check to see if the provider allows it to have with a conversion option of locking into a fixed rate any time during the first 3 yrs of the loan for a fee of only $50.00.

These are some of the most popular Ohio mortgage loan programs you can get from local Ohio mortgage providers:

* * 5 ARM

* * 30 Yr Fixed Jumbo

* * 5/1 ARM Jumbo

* * 30 Yr Fixed

* * 15 Yr Fixed

These are the other Ohio home mortgage loan programs that are available from mortgage providers:

* Fixed Rate Ohio Mortgage Loans

* Adjustable Rate Ohio Home Mortgages: 1/1 and 3/1

* Ohio Home Mortgage Balloon Loans

* Ohio FHA Loans

* Ohio Mortgage Home VA Loans

* Ohio Permanent/Construction Loans

* Construction only Ohio mortgage home loans (builders or owners)

* Ohio Building Lot Loans

* Ohio Blanket Loans

* Ohio Jumbo Loans

* Non-Conforming Ohio Home Mortgage Loan Brokerage Services

* Ohio Home Mortgage Equity Loans/Second Mortgage

* Advertised Closing Costs May Not Apply With Some Provider’s Services

What the Ohio mortgage loan process should involve:

Working with your Ohio mortgage loan provider should be a pleasure and not a stressful situation. Every part of the process should be handled in a professional and timely manner. All of your questions should be answered to your satisfaction. Your provider should never make you feel like you are wasting their time. The process of getting your dream home or building your dream home should be friendly and easy.

Local Ohio mortgage loan providers will lend to you on several property types:

* Single family dwellings or condominiums (owner occupied and non-owner occupied)

* 2-4 family dwelling units (owner occupied and non-owner occupied)

* Multi-family dwelling units, up to 200 units

* Residential farm (home)

* Building lots or sites

With foreclosures and mortgage defaults on the rise, lenders are tightening up lending standards. So, if you’re in the market for a mortgage, how does this affect you. There’s no doubting that the mortgage industry has taken a battering in recent months and there will be less credit on offer for the next few months while lenders assess the situation. It isn’t just first time buyers who are finding it more difficult to get mortgages, home equity loans, or borrowing against the value of your homes, are also being hit. Homeowners are expected to provide a lot more documentation and it is increasingly rare to borrow the full market value of your home.

Even though many of the loans going into default were granted based on well-proved credit scores, some types of loans offered had not been around in the past. Lenders had also been offering loans up to 100% of the home value and in some cases, up to 125. Lenders are becoming more circumspect about these high percentage loans and are carrying out a lot more investigation.

No doc or low doc loans are becoming a lot more difficult to get. These loans required no income verification from the borrower and the lending decision was based purely on the market value of the property. As property values have stagnated and in some areas are in decline, the risk to both borrower and lender has increased.

There are also fewer piggyback loans. A 2006 Standard & Poor’s study reported that piggyback loans were 43% more likely to go into default against first time mortgages of the same size. Lenders will require larger down payments to consider these types of loans.

Borrowers will have to face up to the fact that obtaining credit is not going to be as easy as in the past few years. The mortgage industry is licking its wounds at the moment and are staying away from the riskier types of loans. But for buyers who have a good credit score and a steady income will still be able to get some good mortgage deals. Interest rates are not expected to rise dramatically this year as the government is trying to help the housing market recover. House prices are falling and buyers can still take advantage of the current situation and pick up some real bargains.

Reverse mortgage rates are not different form traditional mortgage rates, and when you are applying for a reverse mortgage you should make every effort to find the lowest reverse mortgage rates you possibly can. While comparison shopping takes time, you can help your own cause by taking advantage of the reverse mortgage calculators available on one of the many reversed mortgage Internet websites.

You will have to pay interest on your reverse mortgage loan regardless of whether you receive your money as a single lump sum, in monthly installments, or as advances on a credit line. In the US, reverse mortgage rates are tied to the US Treasury rate, and like all adjustable mortgages rates will fluctuate as it does.

The Margin Is The Difference

Because of this, any money you save on your reverse mortgage rates will be as a result of the competition among lenders. Their margin--the amount they charge in interest over and above the variable treasury-based reverse mortgage rate, will vary from company to company. Lenders can adjust their rates anywhere from once a month to once a year.

Fixed-Rate Reverse Mortgages

Fixed–rate reverse mortgages are the exception to the rule, although they have become more available in recent months. One limitation on a fixed-rate reverse mortgage is that the borrower must take his or her money in a single payment; monthly installments and lines of credit are not permitted. Fixed reverse mortgage rates, in early 2007, were hovering in the low end of the six percent range, not including the lenders’ margins.

Your fixed mortgage rate will have nothing to do with your credit history or your income. Even low-income senior citizens who have paid for their homes are eligible for reverse mortgages; they, in fact, are the individuals for whom reverse mortgages are primarily intended.

Home equity loans can be taken by all home owners who qualify and want to access cash for any project. They are actually accessing cash from their home loans and will pay it back plus interest and loan charges. The banks and money lenders promote this loan to home owners as they are secured against the home and do not pose any threat for the lenders. They cannot lose their money as they will be in possession of the purchase documents of your home and will be able to repossess your home if you did not pay off the loan in full.

Although this loan was first devised by banks for home owners to use for home renovations it can be used for anything else as well. Home owners can access this cash as often as they like. As soon as one loan is successfully paid off they can apply for another one it they again need cash.

You will need to first shop around the lending facilities to find out exactly how the loan works. You need to know what you will be letting yourself in for. If there is something that you do not fully understand, ask questions and make sure that you do understand in full.

Usually this type of loan has an adjustable rate which means that the interest rate on the loan will be fixed for a certain period of time and thereafter will become adjustable. Obviously this will make a difference to your monthly payments. Get all this information before you sign anything.

Home equity loans are always a way out for home owners to access cash whenever they need it. These loans are obtainable from all banks and many money lending agencies both in the high streets and online. They are secured against the home so it is not difficult to qualify to get one.

Be careful not to abuse this loan as it could get you into financial problems. Only make use of the loan if there is no other way out for you. It is always the better option to save the money for a project rather than borrow the money. In most cases it is a case of impatience. We do not want to wait a little while for something but want it immediately and then have debt for many years to come.

The most popular use for these loans is home renovations. Banks decided in the beginning that this would be a good way for home owners to access cash to pay for the periodic repairs on their homes. The loan does not necessarily only have to be used for this purpose but it is nice to be able to pay for the renovations on your home.

The banks will either pay out the loan in a lump sum to you or they will open a line of credit that you can utilise as you like. This system works very well when you are renovating your home as you can draw the money to pay the expenses as the work is done and you will be able to keep track of what is spent. When the project is completed you will be able to see that none of the loan has been wasted on anything other than what it was loaned for.

Home equity loans are increasingly becoming the easiest way for home owners to access cash whenever they need it. Although there are certain dangers in taking this loan, home owners still make constant use of them. The danger is that the loans are secured loans and if you for any reason could no longer pay off the loan payments regularly you could lose your home to the bank or money lenders.

These loans can be used for almost anything that home owners want them for. They are considered the special loans of home owners and they may take them at any time for any project they might have in mind.

If you intend buying a new car it would be a good idea to buy the car with the proceeds of the loan and then pay the loan off rather than the car payment. You will be paying less interest and this could mean a big saving for you. The interest rate of the loan will be less than that of the car payment.

This loan is often used by home owners to pay for college tuition fees for their children. This is a good use for the loan and warrants the price of the interest and loan charges that you will be paying on the loan. It is sometimes difficult to afford to give your child this great gift of education as it is very expensive. By using the loan you are making it possible for your child to study.

When you decide to borrow the equity of your home you need to think about it first as you will be paying interest and loan charges on this home equity loan. Very often banks or money lenders will advertise a special interest rate for a short period of time. Try and cash in on one of these special offers so that you can benefit by a saving on loan charges or interest.

This loan can be used by home owners for various reasons of their own choice. It is not difficult to qualify to take this loan from the banks as it is secured against the home. The lenders are therefore not scared to lend the money to you as they know that they will be able to get it back again even if you did not pay off the loan in full.

The lender will check the applicants’ credit history and make sure that he or she earns enough to pay off the payments every month. Applicants with a bad credit rating will also be given loans but might just have to pay a higher interest rate to compensate the lender for the loss he might suffer.

Once a borrower has paid off a loan successfully he or she may apply for another loan if he needs cash for another project.

These loans can be used by home owners who find themselves in debt. It is a good solution to consolidate your debts and then apply for this loan to pay them all off at once. The loan will not be less than the combined debts but you will be saving money on interest every month.

The process of paying off an existing mortgage with a new loan secured by the same property is called refinancing. This is true for refinancing a home in any area in Ohio.

Borrowers can often benefit financially from refinancing their homes in the Ohio area. And there are two basic types of refinance mortgages that those living in Ohio can choose from:

• An Ohio Reduction Refinance. This refinance mortgage process is made solely for the purpose of reducing the mortgage. With this transaction the new mortgage loan is increased to include, or what they call a “roll in,” the fees/closing costs associated with the new loan. With an Ohio Reduction Refinance, if you use Fannie Mae, you might be allowed to obtain a small amount of money from the transaction without it being considered a “cash-out” refinance. With an Ohio reduction refinance Fannie Mae will allow up to 2% of the loan balance, or $2,000, whichever is less, as the maximum cash-out.

• An Ohio cash-out refinance. This Ohio refinance mortgage transaction is made specifically to obtain money. In this transaction the new mortgage balance is increased to take care of the closing costs, pay off the existing mortgage balance, and provide the person borrowing with the money they are requesting. The person who receives the cash in the Ohio cash-out refinancing can use the money for paying off credit card debts, paying tax liens, or for any thing else they would like.

If you live in Ohio and are considering doing a refinance on your mortgage then the single most important thing you must evaluate is the new value of the property. The estimated value of the new property must be correctly evaluated against the balance of any existing liens (including the balance of the current mortgage).

This is very important because it ensures that there is sufficient equity to meet both maximum loan requirements and the borrower’s objectives.

There are several reasons a resident of Ohio would want to refinance their mortgage: To reduce the Ohio home mortgage payment, to change the Ohio home loan type, or to obtain cash-out to pay bills or other reasons.

The Ohio Rate Reduction

One of the most obvious reasons for a resident of Ohio to refinance is to reduce their interest rate. Rates have slowly risen but the last couple of years Ohio mortgage rates were at an all time low. With the Ohio mortgage rate reduction the most common way to refinance is to roll costs of the refinance transaction into the new Ohio mortgage loan.

When does it make sense to refinance with the current refinance mortgage rates Dayton Ohio? Most experts will tell you that it makes sense to use the rate reduction transaction when you are able to recoup the costs of the refinancing within 2 to 3 years.