Self-Employed May Have Harder Time Getting Mortgages

Home loan modification for the self-employed is becoming increasingly difficult. Before and during the recession, stated-income loans were easy to obtain, and the percentage of people liberally declaring their income, especially in light of tax returns, was high. Today, for the self-employed, interest rates are about a quarter percent higher than for the non self-employed.

The way for most self-employed folks to get home loan modification is to provide two years of tax returns. For many, the deductions they submitted on their tax returns lower their official income levels, and make qualifying for a loan trickier.

The best way to get loan modification help is to have a credit score over 700, and have two or more years of reliable income. Easier said than done, especially in the tail end of a recession. Small business owners should do the math before determining what is tax deductible and whether it will benefit them to declare it if they want loan modification help.

Getting home loan modification comes down to work. Providing paperwork and determining whether a few thousand dollar deduction one year will save you more cash than on your loan in the long run, can wind up saving you a lot of money over the course of a few years.

How Your Equity Affects New Loan Chances

Loan modification companies can help you pay less each month for your mortgage. But to pay the lowest amount each month, you have to make sure that the equity that you have in your home doesn’t drop below 20%. If that’s the case, you may even have to buy private mortgage insurance, which can make a new loan even more expensive than an old one.

Even if you want a second mortgage or home equity credit lines, and the equity you have in your home hovers around 20%, this may not bode well. The term for this is Loan to Value ratio, or L.T.V.

If you still want home loan modification, but don’t want to take the risk talking to loan modification companies, gauge the value of your home with Zillow.com, or you can invite a real estate broker to give you an appraisal. If the appraisal is well below what you thought your home would be worth, it’s probably a better idea to wait until the real estate market brightens; but if it hovers near where you thought it would, then you can definitely apply for loan modification help. Visit www.WeFixMortgages.com to qualify for a home mortgages refinance.

Trouble Abroad is Good For Us

The European market is still particularly fragile in today’s economy. Last week, worries about the Greek bailout spurred the Dow Jones to fall to its lowest levels in over a month. While this could eventually be good news for Americans, who, with a stronger dollar will have more potential investments in capital, it can also deter other countries from buying exports in the long run, since they will be more expensive.

Europe has struggled with debt over the past decade, as the goal of an emergent united economy has been let down by countries like Greece, Portugal, Spain, and even Ireland. Today, the world fears a Greek default on bonds, which is why the rest of Europe, backed by the largest economy, Germany, is lending Greece the more than 54 billion euros it needs to stay afloat.

What does all this mean for the American home owner? It’s still a great time for a home loan modification. Loan modification help is easy, especially with interest rates still near record lows. Although signs of life are showing in our economy, there’s still a long way to go, and that means that interest rates will be kept low, and a home loan modification is welcome.

Mortgage Rates Rising Doesn't Mean You Can't Refinance!

Mortgage rates have just reached a 5 month high as the recovery starts to rebound from the recession. It is likely that rates will continue to rise as new data about job growth and increased consumer spending will prop the rates increasingly higher. While high unemployment rates continue to keep the U.S. in a recession, this is the third straight quarter that has shown economic growth. In general, this is a good sign. In order for a full return of the economy, however, employment needs to shy away from 10%. It has hovered there for more than 18 months now. The signs that it will do so are not all aligned.

Even though mortgage rates are at a five month high, don’t let that scare you into not fixing your home loan. In fact, the end of the recession should convince you that now is the perfect time for loan modification help. And if mortgage rates grow, it will be slowly, in line with the GDP of the economy. So, the sooner the better for home mortgages refinance. Home loan modification can help you move from your current payment to a significantly less amount of money each month.