Because the influence can be that big, it is crucial to learn more about the student loan consolidation rates and to think, what makes them to go up or down. Actually the student loan consolidation is a great time to try to get lower rates and ease the monthly payments.1. The Federal Loan Consolidation.How are the student loan consolidation rates calculated for the federal loans? The formula is very simple. The rate is the weighted average of the present loans. When you have this one, it is the time to compare that with the market prices and to think, whether you could save something in the monthly payments.The Stafford loans interest rates use a fixed rate of 6.8 % through 2013. However, if the Stafford loan was disbursed before July 1 2006, it has a variable interest rate, but will get the fixed rate, if it will be consolidated. The present interest rates for the federal student loans are historically low. Stafford loan in school or grace period is 1.88 %, Stafford loan in repayment is 2.48 % and Federal Plus is 3.28 %.2. Consolidate The Variable Federal Loan.If you have a federal loan with the variable rate, now is the right time to get the new student loan consolidation rates. The reason is simple. Because the market rates are so low, you can get the low rate for the rest of the loan running time. This means rates for Stafford loan in school or grace period of 2.0 %, for Stafford loan in repayment 2.5 % and for Federal Plus 3.8 %. That can mean real savings for many years.3. Why The Consolidation Brings Savings?Usually a student has taken several loans to finance the studies, when his or her credit score has been the lowest possible. When he has graduated and maybe got the work, the credit score has improved and the interest rates may have decreased. By consolidating, which means one private and one federal loan, he will negotiate the loan with the new payment time and the new interest rate level. These are the two factors with which he can adjust the monthly payment.4. The Meaning Of The Interest Rate.The interest is the price of the debt, which a borrower will pay to the lender. The interest levels are set by the markets and the economy has a great influence on them. The lower is the rate, the better to the borrower, especially if the payment time is long.
Obama’s making homes affordable program is designed to help people who are in trouble or soon will be and are at risk with their mortgage and are heading towards foreclose, even if they do not realise it yet.This government program helps you trough a loan modification. Some loan modification programs which are part of making homes affordable give lenders cash incentives to help out homeowners in distress.Making homes affordable has in reality many different programs under the same umbrella, including the so called loan modification bailout program. HAMP program, HARP program, HAFA and the second lien modification (2MP).With all these terms flying around many people do not know what to do and if you are struggling with your mortgage payments you do not want to be faced with confusing terms. All you want is someone to tell you what you need to do to save your home.Here is what you need to know.The HAMP program has the following requirements.#1 – the home you want to remortgage is one you live in.#2 – the mortgage must be under $729,750 dollars.#3 – the loan modification under the HAMP program cannot exceed 31% of your household income.If you qualify for this the mortgage can also be modified to make sure you can afford it by reducing interest rates and extending the length of the mortgage.The HARP program has slightly different requirements but expired on June the 10th 2010 so it is no longer valid.The HAFA program. This you really want to avoid because this is for people who qualify for the HAMP program but are unable to meet their payments and keep their home. This program will then allow them to sell their home without negative financial consequences but the fact is however you make it look you are losing your home.The bottom line is this. The program you should be looking at is the HAMP program. If you are in debt or behind with your mortgage or fear you are on your way to being so then get help and find a company that is part of the loan modification bailout program or making homes affordable as it is called.The sooner you get help the better. The last thing you want is to find yourself in such financial difficulty that even if you qualify for making homes affordable you still cannot make the payments and will face the heartbreak of losing your home.Getting help only takes a few minutes and the sooner you start the better if you want to prevent your home from being foreclosed.
If you run a search on home loans, foreclosures, or refinancing you’ll find thousands of companies that are taking full advantage of the Real Estate crisis to refinance homes, rework mortgages and deal with the carnage of foreclosure.For the average homeowner who is NOT behind on their payments, the road seems clear to play the shell game of refinancing, but for many in our economy, they are just holding on for dear life.It is a sad commentary on our “prosperous” nation that the vast majority of “homeowners” are in so much debt. Less than 10% of all homeowners actually own their homes. We should call the homes “bankowned” because essentially that seems to be the case.
Less than 10% own their home. That’s a shame.What if there was an answer? What if you could find a way to own your home FREE and CLEAR without owing anyone another nickel on your house?
What if you could do that in a relatively short period of time?
What if you didn’t even know that and because you never found out about it, you lost your home? It’s a pretty sad commentary but, it’s happening all across America.The answer most people choose seems to be the shell game. You know the drill. You go and “refinance” your current mortgage for a “better rate” or better terms and maybe even pull out some of the equity. Aren’t you just savvy.Little do most people know that they are gambling with the one thing that truly represents security in our very insecure world. So few people actually “own” their homes that we have forgotten what that really means.When a bank owns the paper on your house, your family is never really secure. You could be fine now but let there be problem making the payments and you suddenly find out just how insecure you actually are.Thousands and thousands of “homeowners” became renters last year. That’s a cold slap in the face considering many of them had YEARS of payments and interest into their bankers only to find themselves outside their homes.Welcome to the New America, where the banks own everything.I looked all over and haven’t really found any information on really getting free from the mortgage rat-race. I found all kinds of information on mortgages, refinancing, equity loans, and all kinds of different loans.I found information on property taxes, improving your credit and all kinds of information on “qualifying” for a mortgage but how to get FREE from a mortgage… very little.Have we simply given in? Are we a nation that is so comfortable being in debt that we no longer even seek out ways to get free? That seems sad.We should be looking for ways to get rid of mortgages, debt, and financing in our lives. We should be looking for answers that make our homes secure so that we are not loosing sleep over foreclosures.Bankers are a smart bunch. They know that sooner or later over 30 years, there is bound to be a problem. They know full well that you will likely have issues at one time or another. They “bank” on it.I’ve read horror story after horror story of families whose “equity” was wiped out virtually overnight and they found out they weren’t really homeowners at all.So what are we doing about it? Not much it seems. Every “solution” I’ve seen in pages and pages of searches seem to be some sort of “financing” and very little is pointing to NO MORE MORTGAGE PAYMENTS which I would think would be our goal.I don’t know about you but saying good-bye to the mortgage company and knowing that I OWN MY HOME free and clear is one way to really make your family secure.Are there solutions? Of course there are. This is America. You don’t have to have a mortgage. You don’t have to owe the bank for your home.You could get rid of the mortgage but, you’d have to change your thinking.
A home mortgage refinance may just be the best financial decision you can make. However, refinancing is not for everyone. It is mostly a matter of right timing. This result to the unending question for homeowners everywhere: when is it exactly right to refinance?There are many guidelines which can determine whether now the best time to get a home mortgage refinance is. However, despite all these guidelines, what actually determines “right timing” is dependent on your own financial situation. There are a number of signs which are indicative of ideal refinancing conditions. Here are some of them:Refinancing to cut costs. When interest rates are dropping, it may be good to take on a new mortgage. The rule of thumb states that a difference of at least 2% should be followed for a home mortgage refinance to be worth it. Refinancing will result to either lower payments you need to pay monthly, or a shorter loan term to repay the entire money you owe. Either of these can save you money in the long term. However, take note that interest rates should never be the sole determining factor to influence your decision. Make sure you consider closing costs, fees and charges and find out if you will be end up paying more in the long run.Home mortgage refinance for better loan terms. Many homeowners decide to refinance in order to get out of their current loan. If you have a pending balloon loan payment due soon but do not have the means to pay for it, or if you have an adjustable rate mortgage which is increasing, you may resort to refinancing to spare yourself of an even bigger trouble. You can choose to revert to a fixed rate mortgage to minimize risks.The decision to take on a home mortgage refinance should also depend on how long you intend to stay in your home. If you expect to sell your home soon, refinancing may not make sense at all. Also, if you are already halfway through your existing loan, you will barely save anything with a new mortgage loan. However, if you plan to stay in your home for at least the next five years, you will probably have enough time to recoup the refinancing costs you have incurred and actually save you money.Ultimately, finding the right time to refinance is mainly a matter of proper calculation and estimation based on your individual circumstances and parameters. It should depend on how long you will stay in your home, your financial goals, the current interest rates and good deals offered by lenders.This is not to say that ideal conditions assure you of a risk-free decision. Refinancing does take some risk as all financial decisions do. However, as in all risks, you can minimize losses if you do your own research and make a wise assessment of how your home mortgage refinance will lead you to. Refinancing is indeed more than just a matter of timing.
Essentially quantitative easing is adding extra money into the streets to stimulate the economy. The money put in will optimistically allow more consumers buy merchandise and services. Thus, the companies will produce more and hire more workers leading to boost in employment rate overall.Generally predicted QE II is finally revealed. The Fed will be buying more mortgage backed securities and government papers. The amount of the Fed money outlay will depend on many factors and the eventual outlay and its effects will be seen in coming months. The Fed decides on short term interest rates, such as the federal funds rate which is the rate banks charge each other for overnight funds. But long term interest rates such as the fixed rate for fifteen to thirty year mortgages are determined by market participants.Certainly the Fed could influence these rates by actively involving in these markets. This will create a positive demand for such securities that will boost up the price and move down the rate of return. Positively the result would be that mortgage rates come down more increasing refinance applications and helping the housing market.Initial responses were that the mortgage rates have actually increased. The basic clarification for this behavior may be that the participants was anticipating quantitative easing by the Federal Reserve and it seems that they were awaiting more than what was committed. In addition analysts might believe that the Federal Reserve is signalling to boost the economy, but they might be reluctant to open the money gates easily. Hence there are wide opinions as to how much ultimately the Federal Reserve will spend out. Regrettably, it seems that billions of dollars barely leave a dent in the current economy; it could be time to be talking in trillions.Immediate worry could be the inflationary side of quantitative easing. That could force the mortgage rates up. This will be clear in the advancing months and years.Based on your risk attitude, you might determine what you are going to do with refinancing your mortgage. You may decide that you could do with some certainty in your life with a fixed rate home loan refinance. Alternatively, you may be loving it and planning to find out how low down the rates may move before you deem it to be a worthy rate to refinance. There are numerous mortgage instruments in the market that you might like to have a search for the moment. You may further desire to pinpoint the most competitive mortgage loan providers in your state well ahead of an expected refinance undertaking.
If you are in the process of taking out a new mortgage or refinancing your existing mortgage, there are a number of things that can go wrong along the way. Doing your homework and researching mortgage offers and lenders will help you avoid these pitfalls. Here are suggestions to help you on the right path with your new mortgage.Avoid Predatory Mortgage LendersPredatory mortgage lenders take advantage of their borrowers by overcharging for lender fees and interest rates. Despite laws protecting borrowers from dishonest mortgage lenders, predatory lending practices are still common in the marketplace. Fortunately when you do your homework and research mortgage offers the dirty lenders are easy to spot. You can sign up for a free mortgage guidebook to learn how to comparison shop for the best mortgage offer.Avoid the Wrong Mortgage OfferChoosing the wrong type of mortgage for your financial situation could lead to a financial disaster. If you choose a mortgage with very low initial payments that later adjusts to a much higher interest rate or payment amount you could lose your home if unable to keep up on your payments. There are many different types of mortgage loans with varying degrees of risk; before taking out a mortgage it is important to understand the risks associated with the type of mortgage you choose. Again, doing your homework by registering for a free mortgage guidebook will help you determine which type of mortgage is right for your financial situation.Clean Up Your Credit Before You ApplyThe interest rate and terms you will qualify for depends on your credit score. Your credit score is derived by the contents of your credit reports. Before applying for a mortgage it is important to request copies of your credit history from each of the three credit agencies. If you find errors in these records you will need to dispute the errors and have your records corrected prior to applying. You can learn more about shopping for the best mortgage while avoiding common borrower mistakes by registering for a free mortgage guidebook.