Are You Looking For Your First Home Mortgage Loan?
Or, Is Mortgage Refinancing Your Current Need?

Whatever your goals, be sure to learn everything you can about mortgage loans before you actually sign on the dotted line.

There are all types of mortgage loans with a lot of different variables.

There are 100% loans, bad credit mortgage loans, FHA Mortgage Loans, loans for Veterans, special loans for people in rural areas, loans with down-payment assistance and more.

There are ways to save money on your closing costs if you know the right questions to ask or things to say. Be sure to read the article on this site about home closing cost savings tips.

You need a good understanding of mortgage rates. They are not the same for every person obtaining a mortgage loan. And you certainly want to get the lowest mortgage rate that you can when you purchase or refinance. Your credit score will greatly affect the rate that you are able to get.

The larger the down payment that you can make the better the interest rate you will be able to obtain.

Also, if you can pay 20% down on your new home then you will be able save the cost of the PMI (private mortgage insurance).

If you are thinking "How Much Home Can I Afford" then that answer will vary depending on the mortgage rate that you are able to obtain. Try the mortgage calculator provided on the left with different mortgage rates to get an idea about your future house payment.

Remember that your total house payment will usually be the sum of the principal and interest on your loan plus an escrow amount for your property insurance and taxes and a fee for private mortgage insurance if you are not paying 20% down on your home.

It is your hard earned money so take your time and arm yourself with a good knowledge base on mortgage loans before you take the leap into home ownership.

If you already own a home and need to refinace your current mortgage then the same applies. You are going to incure closing cost fees when you refinance. You will be getting a new interest rate. If your already have 20% equity in your home then you will be able to eliminate the private mortgage insurance amount from your monthly house payments. Even with refinancing, learn all you can about mortgage refinancing before you refinance your current mortgage loan.

In late 2007 Fair Isaac announced that they have added new innovations to their FICO® credit risk scoring model. This change will significantly enhance the credit score's predictive power. There was no change to the score range of 300-850®.

They indicate that the new score research model will increase predictive strength by 5-15 percent.

What does this mean for you the consumer who wants to get a mortgage loan? It will now be harder than years past for some people. Those who have been marginal in the past will definitely not quailify for a home loan until they have improved their credit scores and proven their credit worthiness.

Another change since the mortgage meltdown has been in the FHA mortgage arena. Previously FHA requirements were not score driven. Which meant that one could get an FHA mortgage loan with a score that was less than what was required for conventional loans. Approval for an FHA loan was decided by an evaluation of the person's credit history and not by the credit score.

Today, most FHA lenders will not even consider a person for an FHA loan if their credit score is less than 580. And even then the borrower will have to pay a higher interest rate for a score between 580 and 599.

Mortgage money is available for loans and at very good interest rates. But the bar has been raised for qualifying for those home loans.