Did you know that there will be over 2 MILLION home forclosures this year?

You’ve probably heard that getting a loan modification can a be time-consuming and exhausting process. Even though the Obama administration’s “Making Home Affordable” program is designed to help homeowners keep their homes, a recent CNN investigation revealed the shocking truth: rather than helping people, banks are giving homeowners the runaround.

• Eligible applicants are being denied assistance.
• Homeowners are being pressured into loans they can’t afford.
• Homes are being placed in foreclosure while their owners are being considered for a modified loan.
• Lenders are making people waive their legal rights — even though the program prohibits it.
• Banks are mistakenly telling homeowners that they need to be in default on their mortgage to qualify for the program.

 It never hurts to have a back-up plan. If you are behind on your mortgage, loan modification may be the answer you are looking for, but how do you effectively advance through the system without getting caught in one of these common pitfalls?

You need an advocate on your side… someone who knows the complex practices of the financial industry and can cut through the red tape to get you the help you need.

These Loan Modification Specialists can work for you to negotiate with your mortgage lender. They will review your specific situation and present you with several proposals so you can decide what will work best for you. And they will also help you to audit your loan, refinance your current mortgage, or set up a short sale if a loan modification is not the right option for you to take.

So, if you are having trouble staying current on your mortgage, or are concerned about your financial future, don’t become a statistic! You have options — act now!

Popularity: 25% [?]

The Home Equity Acceleration Plan (H.E.A.P.) shows you how to pay off your home mortgage 5, 10, 15+ years early with a plan that:

• Does NOT require you to change your current lifestyle
• Does NOT require you to refinance current debt
• Keeps you in complete control at all times
• Is NOT a bi-weekly payment plan
• Has NO risk!

Who knew such a unique and simple home mortgage acceleration plan existed? I certainly didn’t before I read this book! If you are interested in paying off your mortgage years early with a plan that works automatically and has no downside risk to implement, then you need this book and to learn about HEAP.

Find out more about The Home Equity Acceleration Plan at Amazon.com.

Popularity: 22% [?]

If you are looking for a home mortgage, how can you know you’re getting the best deal available to you?

Despite any advertising hype you’ve seen or what has worked well for your friends or family, there is no such thing as the best mortgage. There is only the best mortgage for you.

This is true because no one else has the same financial situation as yours. Your income and your expenses are unique to you. Your spending habits and your repayments are also not the same as anyone else’s, so what works well for them may not work at all for you.

After all, the really low interest rate you saw advertised or heard about from a friend might sound ideal, but you might not qualify for it. Or you may discover that, even though the rate is really low, there are hidden fees and charges that would increase your costs above what you would pay for other options.

So, how do you find the right mortgage for you?

The key is to look carefully at your current income and your current expenses. You also need to consider your future plans.

For example, if you know you’re going to sell the house and move in a couple of years, then always double check what the exit fees will be on the mortgage you choose.

If your credit score is a little low right now, then you may want to shop around and compare the difference between paying higher interest rates and less for a house right now. Then look at how those numbers may change when you take 6 months to improve your credit score. You might get a lower interest rate then, but will you be paying more for the house you want?

If you will be borrowing using two incomes to meet mortgage servicing levels, but you know you want to start a family soon, then consider using only one income to work out your budget. This way you will decrease your chances of financial hardship in the future.

Some people are attracted to the really low introductory rates the banks advertise. If your budget just barely covers the payments for these introductory rates, you need to consider how you’ll afford the repayments once the higher interest rates kick in. If you’re unable to refinance in the future then you could face a lot of stress and trouble when this happens.

When it comes to finding the right mortgage, most people simply go to their local bank branch or they call a mortgage broker. Your bank can only offer you the lending products they have available. They can’t offer you the great deal you saw across town from another bank.

Mortgage brokers are licensed to sell financial products from a wide range of banks. This does give you a lot more choice, which increases your chances of finding the right mortgage. Always remember that mortgage brokers are paid for selling you a lending product, regardless of which one you get.

It’s important to be sure that you’re really getting the right mortgage for you. The best way to do this is to ask plenty of questions and do your own research. Be prepared with a list of things you want to know and be sure you get the answers you need.

Popularity: 11% [?]

Did you know that biweekly (every other week, rather than once a month) mortgage payments will reduce the amount of interest you will pay during the life of your mortgage as well as pay off your loan more quickly? However, you need to be careful, because procedures at some banks can keep this plan from working out for you. Even though you may be diligently making a mortgage payment every 14 days, if you aren’t paying attention, it is possible that you are not getting any further ahead!

This happens because many banks are not interested in helping you pay your mortgage off more quickly, since it results in less income (interest) for them.

If you want to make biweekly mortgage payments, you should pay exactly HALF your monthly payment amount on the same day, every two weeks. For example, if your monthly mortgage payment is $1,000, you would divide this by two and begin to pay $500 every 14 days.

So, lets take a look at some of the ways this can backfire on you.

When “Biweekly” Becomes “Twice-Monthly”
This is of particular concern if your mortgage payment is automatically deducted from your bank account. Sometimes, when banks are asked to change your payment schedule to biweekly, they will set it up for the 1st and the 15th of each month, every month. Since these are not truly “biweekly” payments, they will have no beneficial effect on your mortgage at all. You need to be clear and firm about having your bank accept your payments every 14 days, not twice a month. In this manner, each year you will be two full payments ahead on your mortgage!

Differences in How Biweekly is Calculated
Some banks have their own way of calculating biweekly payments so that it works in their favor instead of yours. Grab a calculator and figure it out for yourself — it’s not difficult. Simply divide your monthly mortgage payment by two. Unfortunately, some banks don’t look at it this way, and they will calculate it in the following manner:

Again, let’s assume that your monthly payment is $1,000. Each year, this adds up to $12,000.Since there are 26 two-week periods in a year, they will divide $12,000 by 26 to arrive at $461.53. Again, not only does this not help you save money on interest or pay your loan back more quickly, but by using this method of calculation  you may actually find yourself in arrears on your mortgage! This is because during most months, you will only be paying $923.06 ($461.53 x 2) instead of your actual minimum payment of $1,000. Suddenly your bank will be able to impose penalty charges for not making your full monthly payment.

So no matter how helpful it appears your bank is being, always do your own calculations and insist that your payments be made exactly every 14 days. Your financial future is at stake so if you stand firm and remain in control, you will reap the benefits.

Popularity: 27% [?]

You may already know that biweekly payments can go a long way toward helping you to pay off your mortgage faster, but do you understand how they work? Let’s take a moment to walk through the theory behind this money-saving procedure and how you can put it to work for you.

How Biweekly Payments Are Calculated
Grab your mortgage statement and take a look at the amount of your monthly minimum payment. This is the ‘amortized’ payment, which was calculated by the bank to pay back a bit of your balance and a lot of their interest.

This figure is also the least possible amount you need to pay in order to make your mortgage stretch out for the longest possible period of time. If you pay only this minimum amount once a month, then your mortgage balance will be fully repaid at the very end of the full loan term.

However, it’s possiblee to re-calculate this payment so that the numbers work a bit more in your favor, rather than making such a large contribution to the bank’s profits.

With a standard monthly mortgage payment, if you pay $1,000 on your loan each month, then at the end of the year you’ll have paid exactly $12,000. Simple, right?

But let’s take that mortgage and apply a biweekly payment calculation…

For the same mortgage, with a monthly payment of $1,000, you’ll divide this by two to arrive at a biweekly figure of $500. This means you’re going to pay half your mortgage payment on the same day of the week, every other week.

It is very important to distinguish between biweekly payments (every two weeks, every 14 days, or every fortnight) and twice-monthly (for example, on the 1st and 15th of each month). In order for this system to work in your favor, you must make sure that you are making your payments biweekly.

How Do Biweekly Payments Reduce Your Mortgage?
Well, when you make your new biweekly mortgage payment on the same day every second week, then by the end of the year you would have made 26 payments instead of 24. This puts you two entire payments ahead each and every year.

What Else Can Biweekly Mortgage Payments Do For You?
In addition to being ahead on your mortgage payments, thus shortening the length of your loan, biweekly payments will also reduce the total amount of interest you will pay. When banks calculate your interest charges, they work out how much interest you owe them based on your mortgage’s balance at midnight EVERY day. Then they add these daily figures together to present you with your interest charge at the end of the month.

By paying biweekly, your balance is actually reduced every 14 days. This in turn reduces the amount of interest the bank will charge you at the end of the month.

Popularity: 43% [?]

Whether you are currently applying for a home loan, or you already have a mortgage that you are paying, it’s a good idea to learn a bit about the different types of mortgage loans that are available. Once you understand how different mortgage types can affect you and your financial goals, you can then begin to make more progress toward you goal of debt-free living.

You see, whether they will admit or or not, banks aren’t really crazy about mortgage reduction plans. They want their customers to stay in debt and make their repayments (on time, of course) for as long as possible. This is how they make their profits.

It’s also why some banks offer lending products that are specifically restricted and inflexible. They purposely make it difficult for clients to adjust their payment schedule or make it expensive and unattractive for you to repay your loan early.

So, let’s take a look at some of the available types of mortgage loans, and how they work.

Adjustable Rate Mortgage (Variable Rate)
An Adjustable Rate Mortgage (ARM) is charged at a variable interest rate. The amount of your payment goes up or down in line with any interest rate movements on the money market.

Fixed Rate Mortgage
A fixed rate mortgage allows you to lock your interest rate in at a specific percent that remains the same for the term of the loan. Fixed rate mortgages are ideal for people on a budget, or if interest rates are likely to increase in the coming years. They’re also great for investors who need to maintain steady investment costs.

Principal and Interest Mortgage
The vast majority of mortgages are set up using a repayment calculation method called ‘amortization.’ Using this method, the bank can calculate exactly how much interest they want to charge you in advance over the entire loan term and then they can determine how much of your monthly payment will be in the interest portion and how much will pay off the principal.

Understanding that each payment you make is made up of both principal and interest payments means that you can try to find ways to reduce your mortgage balance so you’re paying less interest and more principal whenever possible.

Interest Only Mortgage
Some banks allow investors to repay only the interest portion of their mortgage and not repay the principal balance. Many property investors elect to use these mortgages, choosing to either bank on capital gains in the property or to keep the profit generated by the rent.

Equity Loans
An equity loan is a revolving line of credit that is a bit like a giant credit card. Theoretically, a line of credit could be used as an amazingly powerful debt reduction tool. Unfortunately, 95% of people who have equity loans are never given enough information to use these loans effectively and so they end up in worse trouble than they imagined.

Equity loans are charged at an interest only rate on the balance owing each month. You’re not asked to repay the principal unless you want to. This makes it very tempting for people to pay only the minimum and redraw any available equity they may have, which keeps them in debt for a longer period of time rather than paying off debt.

Unless you’re extremely disciplined with your money and able to create and maintain a very accurate budget each month, you should avoid using an equity line of credit.

Popularity: 12% [?]

This important video from Freddie Mac will teach you how to spot a foreclosure scam and avoid becoming a victim of home foreclosure fraud.

Popularity: 12% [?]

You’ve probably heard the hype about making your mortgage payments bi-weekly, or fortnightly, and how it can slash years off the length of your loan and save you thousands of dollars.

Some debt reduction companies will actually charge you massive fees to teach you how the bi-weekly debt reduction system works.

Or you can do a bit of research and learn about it for yourself and save yourself some fees once you realize how easy it is.

Why Pay Bi-Weekly Payments?

When the bank sets up your mortgage, they amortize your repayments. This means they have already factored into every one of your repayments the amount for your interest (their profit) plus a tiny amount that is subtracted from your principal balance. This means that for every payment you make, the amount that you owe is only reduced slightly.

Most people pay only the amount written on their statements each month… and banks love this way of thinking because it allows them to make the largest profit from their customers.

By making more frequent payments, you not only reduce your balance more quickly, but you also reduce the amount of interest the bank is able to charge you.

Getting Started with Bi-Weekly Payments

Before you change any of your payments, you need to calculate the amount you will be paying each fortnight (14 days). Start by dividing your monthly repayment amount by 2. It’s not rocket science. Just look at the amount of your required monthly payment and divide it by 2.

This new amount will become your new bi-weekly payment.

Don’t try to use any other calculations and don’t allow your bank’s customer service people to calculate it for you. Insist the bank’s customer service people use your figure — not theirs. This is important.

Setting Up Your Bi-Weekly Payments

You will need to call your bank or lender and work out your payment changes so that they can make any necessary updates in their computer systems

The bank staff might make suggestions about doing “real” bi-weekly payments, which are “even cheaper” than the figure you worked out from the step above. If this happens, use your own bi-weekly figure that you worked out above and don’t be swayed.

Why Bi-Weekly Payments Work

When you pay your loan monthly, you will make 12 payments each year. However, when you pay bi-weekly (every two weeks) you will make 26 payments per year — which actually works out to 13 monthly payments.

This means if you continue to pay your mortgage payments bi-weekly you will be one full monthly payment ahead each year.

It’s very simple, but this method actually can cut several years off the length of your loan and save you thousands of dollars in interest charges.

Try entering your own numbers into any good online mortgage calculator and check what savings you could be making by paying your mortgage bi-weekly!

Popularity: 11% [?]