Many first time home buyers don’t realize the power they have when shopping around for a mortgage. Mortgage lending is a highly competitive industry, even in times of housing market downturns. Hey, if a lender doesn’t get you the mortgage, the company doesn’t get that interest payment every month. Believe it or not, you’re in the driver’s seat when it comes to mortgage loan shopping. You’re the individual that lenders are looking for. So you have choices.
Golden rule: When mortgage shopping, there’s no deal you can’t walk away from. Again, you can always walk out the door and go to lender number two or three. Even in times of tight money and credit crunches, you have choices, options and power. Get a good faith estimate from your lender. Choose reputable lenders. And then remember, this is a business deal so go with the best deal offered.
And remember this, even if you’ve never owned a home before. Once you own the home you can still shop around for a better deal – a no closing costs deal at a lower rate, or switch your low-rate ARM to a 30-year fixed and enjoy the peace of mind a fixed rate mortgage offers.
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It just may be.
That cable company you’ve been with for the past 20 years raises its prices monthly, or so it seems. And, if you want on-demand viewing, hi-def and other entertainment goodies, you’ll pay extra. We've all got a friend who has every cable bell and whistle (including over 400 commercial music channels) and pays $200+ a month. You have got to be kidding me! That’s a week’s groceries!
Satellite TV has had to fight its way through the cable morass. It sounds confusing. And what if there’s a tree in the way and your azimuth shifts during an earth tremor and blah, blah, blah.
Because the digital entertainment market is so competitive, satellite companies have to provide more – more channels, more features and more for your viewing dollar, including hi-def reruns of Gilligan’s Island. That means you have choices and when the consumer has choices, the consumer has power.
You’ve heard it before. Knowledge is power. The more you know about satellite dish options – the pros and cons – the better your final choice.
What to Look For
Whether you’ve taken the plunge and gone HD, or plan to, Dish delivers HD. You want it.
Number of channels. Yeah, but if most of them are beaming in from Zimbabwe, who’s watching? It’s not the number of channels, it’s the quality of the content. And only you can decide what’s quality viewing. (BTW, if you’re hooked on the Golf History Channel, seek immediate medical attention.)
Free installation. This is not a project you want to do yourself, even if you sort of know what you’re doing and the installation guide is clear enough. Most providers deliver free installation.
Multiple viewer sites. Today’s satellite companies offer up to four different feeds to one house so you and the kids can watch four different shows on different sets.
Length of contract. The shorter the better. Be sure to find out what the company does with the hardware it’s installed. You don’t want some burley guy named Bubba pulling out your dish along with a few shingles.
By Tristan Stewart-Robertson
MORE than 38,000 different mortgage deals offered by lenders have disappeared in the past year, according to new figures exposing the growing credit crunch.
Mortgage Monitor, a group of independent analysts, said the number of deals on offer had dropped by 76 per cent in a year – 56 per cent in the past six months alone – making it harder for Britons to re-finance their homes
Mortgages available now are much more challenging, compared with 68,000 this time last year, the report, out today, claims.
The survey says this is because banks and building societies respond to the credit crunch by avoiding "higher risk" mortgages, particularly those that fix rates over a longer term, or require deposits of less than 10 per cent.
The most dramatic decline has been seen in the fixed-rate market, where a staggering 38,000 deals have vanished in the past year, shrinking the market by 82 per cent.
The tracker market has also been hit hard, with a 56 per cent fall. The "five-year" tracker has seen the biggest decline, with just 26 deals now, compared to 131 six months ago.
Tracy Collins, of the Guild of Independent Mortgage Advisers, said her clients are "panicking" and trying to renegotiate their mortgages even as the deals on offer get worse.
She said: "Clients are phoning up wanting to book a rate even when their redemption periods might not be up until the end of September. They want a deal in place now so they know what they will be paying."
Les Jacobs, the chairman of Mortgage Monitor, said more consumers were turning to services such as theirs to find the best deals possible.
He added: "We know that the number of mortgage deals available is on a dramatic decline, but there are still some good deals out there.
"It's a matter of being quick and taking advantage of those deals while you can."
The Royal Institution of Chartered Surveyors also warned at the weekend that UK house prices could fall at least 40 per cent this year as would-be buyers struggle to find a mortgage.
Consumer spending could slump by 8 per cent compared with a year ago, it added, also predicting house prices will fall 5 per cent this year, a more modest decline than some forecasts.
How to Obtain the Lowest Jumbo Rate
You can save a lot of money by finding the lowest Jumbo Rate. A small difference in your Jumbo rate, even 1/8 % can save hundreds of dollars each month. To search for the lowest jumbo rate, it is helpful to know how they are priced. Proper structuring and preparation of your mortgage and knowing how the banks price their loans will help you find the lowest rate.
- A larger down payment equals a lower Rate –Sure you can find a 10% down Jumbo Program because many banks offer them, but do not expect a great rate if all you you are willing to put down is 10%. The normal down payment is 20% down but the best rate goes to the borrower with 25% or more down. Consider putting more down.
- Learn your credit score – Now is not the time to find out your ex-spouse is still using your credit to open accounts. It is imperative to know your score 90 days before you mortgage shop. The three credit bureaus are Trans Union, Experian, and Equifax. Each of these companies will score your credit independently and the mortgage company will use the “mid-score” of the three. Make sure you review each one for errors because one mistake can reduce your score by 50-100 points making you not eligible for a jumbo mortgage or not qualified for their best rates costing you thousands. You can obtain copies of these reports at http://annualcreditreport.com for free once per year.Banks like Chase only offer the best rate to those borrowers with a credit score of 780, those under 780 have a higher rate. Credit scores are crucial.
- Find a Jumbo lender and track the rates- Most loan officers will gladly quote a rate and then call you when rates have reached the target you are looking for. If the prevailing rate is 4.5% and you would consider a refinance when the rates are at 4%, the loan officer will call you on the day the rate is available and you can refinance.
- ARM loans can work wonders for the right person – ARM loans can have a fixed period and are usually at least 1% lower than comparable 30 year fixed rate mortgages. This can save thousands per year. ARMS have a fixed rate period of 3, 5, 7 or 10 years and then they adjust monthly after the fixed period is over. ARMS have caps on how much they can increase of 2% per year and 5% lifetime cap over the start rate. If you know you aren't going to stay in the home beyond a certain time period, or better yet, if you will be able to pay off the loan early then this might be the way to go.
Check jumbo rates and stay current – Mortgage rates change with the market and can change several times per day. Make Checkrates.com the place for you to track jumbo rates.