Sean Horton asked:




There are many good second property mortgage offers around, that is providing you know what you are looking for and you know where to go to dig them out. By far the best way to go about getting the best deal when it comes to your second mortgage is to go with a specialist broker. A broker knows the ins and outs of second home mortgages and knows exactly where to look to get the best deal for your needs.

When it comes to getting the best second property mortgage offers then you will of course have to decide what it is you are buying the property for, the type of mortgage will differ according to the fact of if you are thinking of letting the property or are going to be using it as a holiday home for yourself.

Another difference for the two is the insurance you will need to cover your second property; if you are going to be letting it then you will need to take out landlord insurance which will cover the tenants and yourself. If going for a buy to let mortgage then you will have to meet certain requirements set out and these include making sure the property is fully furnished, it has be available to rent for at least 140 days out of the year and you must let it for 70 days within a specific period of time. Of course you can discuss this with your broker to make sure that you get the best deal on your mortgage.

Lenders will calculate the mortgage on different factors, for example if the property is going to be used as a holiday let then the lender will want to know that it is in an area that is going to draw in renters. One of the main factors taken into consideration by the lender of a holiday let mortgage is that you will be able to bring in around 130% of the mortgage from the rent. If you are going for just a second mortgage for your property then the biggest factor will of course be the amount of income that you earn.

Whichever type of property and mortgage you are going for the easiest way to get the best second property mortgage offers is by going to and taking advice from a specialist broker. While you will have to pay for the services of the broker when you take into account that they have the expertise in finding the best deals and giving the best advice you could in the long run save yourself money if you should make a huge mistake by going it alone.

Dustin

Mary Ny asked:




Fannie Mae was chartered in 1938, as the Federal National Mortgage Association (FNMA), with the responsibility of creating a secondary market for home mortgages. It operated under direct federal control. In 1968, the Federal National Mortgage Association was partitioned into two separate entities- one wholly owned by the government and known as the Government National Mortgage Association (Ginnie Mae), and the other to retain the Federal National Mortgage Association (Fannie Mae) name. It was privatized by legislation enacted in 1968 and became fully private in 1970.

Fannie Mae (along with Freddie Mac) sets the limit each year on the size of a conforming loan based on the October to October changes in mean home price. Mortgages above this limit are considered jumbo and super jumbo loans because Fannie Mae and Freddie Mac only buy conforming loans to repackage into the secondary market, making the demand for non-conforming loans much less. Thus, interest rates for jumbo and super jumbo loans are higher than for conforming loans.

According to the Office of Management and Budget (OMB), borrowers see mortgage rates 25-50 basis points lower because of what Fannie Mae and Freddie Mac do. This is reflected in lowered interest rates of up to a half percentage on each individual homebuyer’s mortgage, which translates to lower payments and increased consumer cash flow for other purposes. Fannie Mae and Freddie Mac also were the agencies that recommended that FICO scores be used in mortgage lending. Now, FICO scores are the mortgage industry standard for originating conventional loans, adjustable rate mortgages (ARMs) based on various prime rate indices, jumbo loans and 2nd home purchases as well as the popular cash out mortgage refinance loans.

Today, Fair Isaac estimates that more than 75% of all mortgage originations in the U.S. involve the FICO credit score. FICO scores are being used in almost every sector of the nation’s economy, and largely determine whether or not you will be approved for credit (including mortgage loans), what interest rates you will pay and what loan terms are available to you. This is why it is important to maintain a high FICO. But, if you’re a homeowner who’s had credit issues in the past, a timely mortgage refinance or home equity loan (second mortgage) for debt consolidation can help raise your score substantially and save you a lot of money.

Pauline

Mercy Maranga asked:


Having bad credit can sometimes hamper very many dreams or things that you want to achieve. Most conventional lenders may not want to be associated with you unless you are also bringing something valuable to the table. However, this should not dampen your spirits as there are lenders out there who are willing to give you a chance despite your bad credit. There are many reasons that you could have bad credit. This could be due to a loss of business, a divorce or even huge medical or credit card bills.

So if you need to get a mortgage, there are bad credit mortgage loan lenders in the market. These loans are generally more costly than the regular home mortgages. This is because the lenders need the extra security should you default. It is advisable that you compare the different lenders and what they are offering in terms of repayment options and interest rates. The terms that they offer are usually done depending on how bad your credit is and the amount you intend to borrow.

When making bad credit mortgage payments, it is advisable to repay your loan over a short period of time. The longer you take, the more you will pay especially in interest. These types of loans are normally approved much faster by the bad credit mortgage lender.

There are those that have a pre-payment penalty so it is important that you are fully aware of the type of loan that you are going for. You will also have to choose whether to go for a fixed rate loan or a variable rate one. If you repay your loan, you will be able to repair your credit and help you get lower rates and a more affordable mortgage deal from a standard lender.



Anita