Annapolis, MD -- (ReleaseWire) -- 12/15/2009 -- It seems like everyone in Maryland is jumping on the mortgage refinancing bandwagon. Maybe you're thinking about it yourself? After all, with rates as low as they are, the promise of lowering your monthly payments, sometimes significantly, is a great attraction for many homeowners.

But before you sign on the dotted line, there are a few things you should know about the way refinancing works so you don't make a mistake that could wind up costing you big time.

"With refinancing as popular as it is right now, Maryland residents have to be even more careful about shopping for the best loan," says Lou Colletti, a ANNAPOLIS, Maryland based mortgage consultant. "Even the most attractive offer can wind up being a disaster once you realize how much the loan is really costing you."

Colletti offers these tips when considering refinancing:

* You should get a significantly lower rate for refinancing to make sense. Don't rush to refinance unless it's truly worth your while. If you're working with a mortgage broker rather than going it alone, you can be assured that they're bringing you the best offers out there. If you're going it alone, you'll have to do the legwork for yourself.

* Consolidating unsecured debt with a refinance loan can be a dangerous idea. You may not be in financial trouble now, but if in a few years things change, instead of simply missing a credit card payment or two, you'll now be in danger of losing your home as well.

* Your credit score counts... big time. If you've had credit problems in the past like a bankruptcy, it might make sense to wait a while for your credit score to recover before trying to refinance. Most lenders make it hard for people with less than perfect credit to get the best deals. But, again, if you choose to let an expert like a mortgage broker get involved in the process, they can often find loan options that most homeowners didn't even know existed - which can save you thousands over the long haul.

ANNAPOLIS, Maryland - based mortgage expert Lou Colletti specializes in providing mortgage information to Maryland residents that allows them to make informed decisions about their mortgage financing options and learn the insider secrets that can save them thousands of dollars over the life of their loan.

Lou Colletti is available for interviews and will welcome all your mortgage related questions.

Call 410-693-1171 for a Free No-Obligation Consultation or visit http://mdrealestateresources.com

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

The Housing and Economic Recovery Act of 2008 recently approved that mortgage for its purchase program, allowing lenders to close them after Jan. 1. The move allows seniors to make a large downpayment on a new home and then utilize the reverse mortgage as permanent financing.

Annapolis, MD -- (ReleaseWire) -- 12/15/2008 -- Reverse mortgages have been available for more than two decades for senior homeowners that have significant amount of equity in their homes and want to tap it. With recent HECM guideline changes, the HUD is backing a program to help older homeowners purchase a home with the increasingly popular financing program.

The Federal Housing Administration, a component of the U.S. Department of Housing and Urban Development, insures the nation's most popular reverse mortgage -- known as the HECM or Home Equity Conversion Mortgage.

The Housing and Economic Recovery Act of 2008 recently approved that mortgage for its purchase program, allowing lenders to close them after Jan. 1. This new ruling allows older homeowners to make a large downpayment on a new home and then utilize the reverse mortgage as permanent financing.

The same law reduced some costs of securing the HECM reverse mortgage by limiting maximum fees associated with the loan; the maximum loan fee on reverse mortgages to 2 percent on the initial $200,000 of the home's value and 1 percent on the balance thereafter, with a cap of $6,000. Previously, the fees were capped at 2 percent of the home's value or the county lending limit, whichever was lower.

A reverse mortgage historically has enabled senior homeowners to convert part of the equity in their homes into tax-free income without having to sell the home, give up title, or take on a new monthly mortgage payment. Reverse mortgages are available to individuals 62 or older who own their home. Funds obtained from the reverse mortgage are tax-free and do not affect medicare or social security.

"The HECM for purchase will give seniors several more options," said Larry Benton, a Certified Senior Advisor and VP Mid-Atlantic region of the National Reverse Mortgage Center of 1st Metropolitan Mortgage, a reverse mortgage lender. "I think one of the key aspects is that they can stay more liquid. They do not have to reinvest all of their funds into their new home before getting the reverse mortgage, freeing up more cash for other uses."

"For example", Benton continues, "if a 72-year-old senior buyer was downsizing and wanted to purchase a $300,000 home, he or she may find it difficult to qualify for a mortgage because of income or credit requirements." "However, he or she could put approximately $123,000 down from either the sale of previous home or other assets, and secure a HECM reverse mortgage for the balance of $177,000 plus closing costs. The buyer would make no monthly payments for as long as he or she maintained the home as a principal residence.

Interest and mortgage insurance premium accrues on the initial loan amount and become due when the borrower, or surviving spouse, dies, moves or sells the home. The current annual percentage rate for the monthly adjusted HECM 200 is 3.62 percent (including the government's 0.5 percent annual mortgage insurance). When refinanced, the rate for the program has averaged approximately 6.5 percent for the past 15 years.

Eligible properties include:
* 1-to-4 unit single-family homes
* Condominiums
*Manufactured homes, built after June 15th 1976, that meet HUD's permanent foundation guidelines.

"I think you will see the the primary user of this HECM Purchase program will be seniors that want to downsize to a smaller senior-friendly home... those seniors that desire to keep more of their assets for retirement, yet still have no housing payment" Benton added.

Customers interested in the conversion mortgage for purchase must enroll in a HUD counseling class. Borrowers may not obtain a bridge loan (also known as gap financing) or borrow against other assets for the downpayment or closing costs. This restriction includes personal loans, cash withdrawals from credit cards, seller financing and any other lending commitment that cannot be satisfied at closing.

To avoid cases of property flipping, lenders must take steps to ensure that: Only current owners of record may sell properties that will be financed using FHA-insured mortgages; any resale of a property may not occur 90 or fewer days from the last sale to be eligible for FHA financing; and FHA will require additional documentation validating the property's value for resale that occurs between 91 and 180 days where the new sales price exceeds 100 percent of the previous sales price.

More than 450,000 conversion mortgages have been made since 1989, the year FHA launch its reverse mortgage pilot program. FHA insured approximately 112,000 home equity conversions in fiscal 2008, up from 107,367 in 2007 and 43,131 in 2005.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Annapolis, Maryland Based Mortgage Lender Larry Benton reveals mortgage secrets at a new web site that is full of free reports, a home buying guide and free mortgage calculators. The site is designed to give consumers all the facts so they can make an educated decision when obtaining a mortgage.

Annapolis, MD -- (ReleaseWire) -- 11/11/2008 -- Annapolis Maryland based Mortgage Expert finally reveals the secrets at a brand new website

http://www.themortgagecoach.net

This site is loaded with FREE REPORTS, an informative home buying guide, mortgage calculators consumers can use to run various loan scenarios and home buying resources you can use to save time and money before and after you purchase your home.

If you're planning to buy your next home, your first home, that dream home, a condo, vacation home, investment property or looking to refinance in Maryland or the surrounding areas, you will find that this site is a complete resource full of insider secrets that will allow you to choose the loan program best suited to your financial needs.

Here is just a small sample of the secrets revealed on this site...

*Little Known Secrets That Will Show You How To Improve Your Credit Score

*Important Terms You Must Know BEFORE Obtaining A Mortgage

*Tested and Proven Strategies For Building A Better Credit Record Faster and Easier

*The Top Mortgage Questions Borrowers Must Ask Before Applying For A Mortgage

*How To Finally Stop Renting And Own A Home Of Your Own

*How To Own A Home With Low Interest Rates And A Low Down Payment, Regardless Of Your Credit

*7 Things You Should NOT Do When Applying For A Home Loan

*12 Secrets To Lowering Your Homeowners Insurance Cost Your Agent Doesn't Want You To Know

Annapolis, Maryland - based mortgage expert Larry Benton specializes in providing information to consumers that allows them to make informed decisions about their mortgage financing options and learn the insider secrets that can save them thousands of dollars over the life of their loan.

Larry Benton is available for interviews and will welcome all your mortgage related questions.

Call 410.573.0909 for a Free No-Obligation Consultation or visit

http://www.themortgagecoach.net

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm