New Jersey homeowners who have a record of making their mortgage payments on time but are now at risk of losing their homes to foreclosure as a result of unemployment or underemployment can now seek help through a new state government program, Community Affairs Commissioner Lori Grifa announced Monday.

The HomeKeeper Program provides zero percent interest rate, deferred payment mortgage loans to unemployed and underemployed homeowners who, through no fault of their own, are financially unable to make their mortgage payments and are in danger of losing their homes to foreclosure.

The program allows time for the homeowner to seek reemployment or to complete an approved job training program. Qualified homeowners may be eligible for up to $48,000 in assistance for up to 24 months. The assistance loan is repayable should the homeowner sell, refinance, transfer or cease to occupy the property within 10 years from the date of the HomeKeeper loan and there is sufficient equity to repay the loan.

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“You don’t have to be able to read the Central Bank report or be a financial analyst, just go out on the streets, go in my constituency and ask, ‘Do you have a difficulty paying your mortgage, are you at risk of losing your home?’

“The trend over the last few years is that things are getting worst. More and more Bahamians are falling behind on their mortgages and are at great risk of losing their homes.”

He said it is no secret that the number one goal of most Bahamians is to be homeowners.

But right now he said the country in a situation where that now comes with growing risks.

Mr. Pinder explained that the government makes it quite clear that borrowing right now is challenged as banks are signing off on less consumer, business and home loans. “More alarming is that the quality of the loans out there are deteriorating, arrears are growing and it’s particularly on the private residents,” he said. “When more and more Bahamians are finding it difficulty to pay their mortgages, this is a direct indicator that this economy is not improving.

“Bahamians are continuing to struggle, the quality of life is deteriorating and this is not a message of hope to Bahamian people.”

The PLP MP added that he is now left to question what the BMC and its leadership are doing in formulating payment schemes to alleviate the pressure.

“But instead, under this government there is no compassion,” he said. “I am told that the Mortgage Corporation is going around and putting collection notices themselves on people’s homes and this is a government entity.

“This is the entity that was created for the purpose of assisting poor Bahamians with the long-desired dream of home ownership. I cry shame on this government.”

The BMC has long complained that thousands of Bahamians have defaulted on their mortgages, at last report the number of Bahamians who have fell back on their payments was up to 40 per cent.

While speaking with the Journal recently, BMC Chairman Dr. Duane Sands said the corporation is grappling with arrears of up to $80 million.

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Types of Mortgages

There are two common choices of mortgages available for refinancing, together with a third concept. Choosing the appropriate type of mortgage for the homeowner’s circumstances is the largest decision that homeowners confront.

The first common option is the fixed rate mortgage. The interest rate remains permanent throughout the duration of the loan. This is beneficial for homeowners who are able to negotiate a low interest rate.

The second common option is an adjustable rate mortgage. The interest rate will fluctuate through the term of the loan. The fluctuations are dependent on indexes, such as the prime. The rate will rise and fall in accordance with the index’s increases and decreases. This type of mortgage is not as secure as a fixed rate mortgage. Homeowners with questionable credit rates are often offered this product.

There is a limited protection built into adjustable rate mortgages. A clause incorporated into the loan may limit how many percentage points the rate of interest is permitted to increase during a specified amount of time. This protects the homeowner from significantly higher mortgage payments due to marked interest rates hikes.

The third concept is the hybrid mortgage. This mortgage has combined elements of the fixed rate mortgage and adjustable rate mortgage. The first specified portion of the mortgage would come with a fixed interest rate, with the remainder of mortgage having an adjustable interest rate. Hybrid mortgages usually have a lower fixed interest rate than the standard fixed rate mortgage. Lenders have introduced this concept to solicit customers.

Closing Costs

Homeowners need to calculate the closing costs attached to a mortgage before making a commitment to refinancing. Closing costs can add up to a substantial amount. Typical closing costs including application, appraisal and loan origination fees, together with other miscellaneous charges. These costs need to be compared to the savings the homeowner expects to receive from refinancing.

Overall Savings

Overall savings are an aspect the homeowner needs to thoroughly calculate. If there are no overall savings, refinancing may not be advantageous. The goal of most homeowners in refinancing is to realize some savings at the end of the day. There are some homeowners, however, who are concerned with lowering their monthly payments. If their primary consideration is not focused on overall savings, then refinancing may be advisable.

Overall savings are dependent on a number of factors. The interest rate of the old mortgage is compared with the rate of the new mortgage. Also, the amount of the existing mortgage is relevant. How long the homeowner plans to own the home has an effect.

It should not be assumed that the money saved by reducing a previous interest rate to a more favorable one is the sum total of savings. Closing costs must be deducted from the interest savings. If the result of this subtraction is negative, refinancing may not be worthwhile. Alternatively, if the end result is positive, the homeowner will have a net overall savings.

This information should assist the homeowner in deciding if refinancing is a viable option.

Find out the actual advantages of refinancing as well as when is refinancing not advisable from the experts when you visit http://www.mortgagerefinanceguidelines.com, the premier resources on steps to refinancing

Article Source:http://www.articlesbase.com/mortgage-articles/refinancing-a-mortgage-refinancing-explained-1384880.html

Bi-weekly repayment programs consist on payments every other week which implies 26 payments every year instead of 12. Of course, each of these payments has a lower amount than those of monthly payments but even if it is half the amount, you still would have an additional month of repayment thus accelerating your repayment a month every year.

Biweekly Repayment Programs

These repayment programs work seamlessly for those who want to repay their mortgages sooner. Each year of loan repayment is divided into 26 biweekly payments instead of 12 monthly payments. A Year has 52 weeks and payments are made every other week which results on 26 payments each year.

The amount of the monthly payments is defined according to your budget and needs. Some choose to destine higher amounts than the equivalent to half a monthly payment on a traditional repayment program. But even if you just leave them at half the amount of monthly payments, 26 biweekly payments are equivalent to 13 monthly payments. Thus, each year you will be repaying an additional month. This means that after 12 years of repayment you will have gained an additional year.

Save Money In The Meantime

Another benefit of this kind of repayment programs is that by choosing a biweekly repayment program you are continually reducing the capital on a higher rate than with monthly payments. The second payment each month will be calculated with a lower principal and since interests are calculated over the principal you will be saving money.

It may not sound significant on a monthly basis but over the whole life of the loan, it represents savings of thousands of dollars just by spreading the repayment of the loan on 26 biweekly payments instead of 12 monthly payments. As you can see, though it may seem more complicated, it is well worth the trouble.

The Interest Computing Issue

There is however an issue that may arise when interest calculations are made. You need to make sure that interests are calculated also on a biweekly basis because some lenders though offer biweekly payments, still calculate interests on a monthly basis which annuls the benefits you can obtain from a reduction of the amount of interest repayment through sooner principal cancellations.

Thus, when selecting the loan and lender, you need to be very careful and read the contract thoroughly. Make sure that the lender states that interests are computed biweekly too and preferably, you should require a written statement. When requesting loan quotes from different lenders, don’t forget to require information regarding the different repayment programs and the calculation of interests on each one of them so you can rest assured that you won’t close on a deal that is not to your advantage.

Melissa Kellett is an expert loan consultant who has worked for twenty years in the financial industry and helps people to repair their credit and get approved for home loans, unsecured personal loans, student loans, consolidation loans, car loans and many other types of loans and financial products. If you want to learn more about Bad Credit Personal Unsecured Loans and Need Loan Bad Credit you can visit her site http://www.speedybadcreditloans.com/

Article Source:http://www.articlesbase.com/mortgage-articles/become-debtfree-sooner-with-biweekly-refinance-programs-1346139.html

Home owners who would normally be asking themselves what color to paint the house are now asking themselves how are they going to keep the house.  The answer varies from situation to situation, but one thing is certain in all cases, action is needed to prevent foreclosure.  One of the solutions is home loan modification.

A home loan modification is when the bank agrees to change the conditions of the mortgage, allowing the home owner to stay in their home.  There are several forms these changes can take. One is a lowering of the interest rate, or changing the rate from a varied to a fixes.  Another is a change to the length of the mortgage’s duration; and even a lowering of the initial principle of the loan.

There are two approaches you can take.  You can negotiate your new loan with the bank or you can use a professional loan modification specialist.  Either way you are going to have to have certain information ready for the bank to review.

First you’ll need to know your income/debt ratio.  This is exactly what it sounds like.  The bank will need to know how much you make and what ALL of your expenses are.  Not just mortgage payments, but car payments and insurance, credit card bills, cable bills, food costs.

To qualify for President Obama’s Home Affordable Plan:  HAMP (Home Affordable Modification Program– a $75 billion initiative intended to help people afford their mortgages and stay in their homes) you must have a mortgage payment that is 31% of the gross monthly income or more.  When figuring the mortgage payment, the property insurance, taxes on the property and any homeowner association dues you pay can be included in this figure.  Even if you don’t qualify for HAMP you still may qualify for a home loan modification.

You’re also going to need to explain to the bank exactly what has changed that you can no longer afford your mortgage.  Job loss, health issues, and family emergency are a few examples of more common reasons.  Along with that you’re going to need to provide the bank with your plan to afford your new mortgage payments.

The process to get a loan modification is not a simple one and requires careful preparation.  If you’re going to do it yourself, be sure to be prepared.  If you’ve any doubts, then it is a good idea to consult a professional who specializes in home loan modification.

To learn more about home loan modification visit Legal Loan Bailout.

Dustin Rohde is an article contributor to Legal Loan Bailout. Legal Loan Bailout connects you with lenders that can help you avoid foreclosure using home loan modification. Depending on your specific situation (the Property State, your mortgage lender, your mortgage history, your hardship, and any other unique situation you might be in), we will negotiate a loan modification that will help you keep your home. Visit

Article Source:http://www.articlesbase.com/mortgage-articles/home-loan-modification-in-2009-1304392.html

However, due to the economic crisis, most families have credit scores lower than they’ve ever been before. This is where Poor Credit Refinance comes into play. There are advantages to using this type of service, especially for those who have looked everywhere for answers and have still found nothing.

Foreclosure is devastating yet it’s still a threat to many homes. Avoiding foreclosure is difficult. If you are unable to make your mortgage payments you will be happy to know that there is an alternative option.

If you are fortunate to have a FHA Mortgage Loan than you may be able to take advantage of a FHA Streamline Refinance Mortgage.  The advantage of a FHA Streamline Refinance Mortgage is it is a lot easier and faster than the traditional conventional loan.  There are lower costs and less paperwork than conventional refinance loans.

You can get more information on FHA Streamline Refinance Mortgage by clicking the links at the bottom of this article.  There are certain requirements to do this type of Poor Credit Refinance.

When you first purchase your home you were probably eager to settle for whatever interest rate they were willing to give you. Years later, after dedicated payment and a long term history of steady employment, you deserve to have a lower interest rate.

It’s important to refinance before your credit score is affected by nonpayment or late payments of your mortgage but it’s these events that make you realize what actions need to be taken.

Even if you realize it a bit too late and your credit score has been negatively affected, you still can do a Poor Credit Refinance. You can keep the home you’ve worked so hard for.

What this refinance process does is take the equity in your home and use it to give you lower monthly payments that you can afford. If you’ve paid a significant amount towards your mortgage you might have equity that you can use to even out the debt of your home purchase and give you some breathing room in you budget. This will cause you to add on years of payment but you will not be in jeopardy of losing your home.

The money you gain from Poor Mortgage Refinance can also be used for so many different purposes.

Use the money for home improvements, use the money to pay off credit cards or use the money for whatever it is that you need it for. Regardless of your credit score, the companies that offer these types of refinancing solutions evaluate more than your credit score, they evaluate you as a person and your needs.

Luckily today you can do most of your research on the Internet to get a general knowledge on the different options available for you to refinance your home.  You will find even though you may be able to do a Poor Credit Refinance closing costs may be higher than conventional refinance loans.

If you are have trouble paying your monthly mortgage payment you need to consider if a Poor Credit Refinance will help you to survive this economic downturn and get you back on track to not only save your home from foreclosure but it may help you to improve your credit scores.

Click Poor Credit Refinance for more free advice on refinancing your mortgage with bad credit.

If you have a FHA loan click FHA Streamline Refinance Mortgage to learn more about refinancing your FHA mortgage.

Article Source:http://www.articlesbase.com/mortgage-articles/poor-credit-refinance-refinance-with-poor-credit-scores-1297520.html