1. Shorten The Term of Your Mortgage. Lenders charge lower interest rates for loans with shorter terms. For fixed mortgage loans, try a 20 year or 15 year term instead of the standard 30 year fixed rate. A 20 year term is often 1/8th of an interest rate lower while a 15 year term will save you up to 1/2 of an interest rate. The drawbacks include a higher monthly payment and stricter guidelines for underwriting, but the total interest paid over the life of the loan will be dramatically reduced with a shorter term. For Fixed Period ARM’s (loans that are fixed for 3, 5, 7, or 10 years), the lowest interest rate will again be found with the shorter term loans. The 5 Year Fixed Period ARM gives you a lower rate without a lot of risk of increasing interest rates if you reasonably think you will move or refinance within the next 5 years. Note: The average homeowner is currently moving or refinancing at least every three years.

2. Improve Your Credit. Lenders often offer lower rates for select customers with extremely good credit, especially on jumbo loan amounts (loan amount in excess of $400,000 – 2006 Conforming Loan Limit). To qualify, you will need a credit score of at least 780 – a mark achieved by less than 20% of all credit scored borrowers. On the flip side, if your credit score is below 680, you may find yourself being charged a higher rate or not credit-qualified for the best programs. Similar credit score hurdles may exist at 520, 580, 620, etc. The key is to find out what your score is and then work to raise it to the next level to obtain lower interest rates or access to better loan programs.

3. Increase Your Down Payment (or Equity). One of the key parameters for loan pricing is the loan to value percentage (loan amount / home value) of your loan. Borrowers using 95% or 100% loan to value financing will find themselves paying a higher interest rate. If you have access to additional cash, find out if you can get a lower interest rate at 80% or 90% loan to value and use the different interest rates to determine the best use of your available funds. If you are refinancing, getting cash out of your house above 70% loan to value will cost more than at under 70% loan to value and the interest rates really jump at 80% and 90% loan to value. As you are researching interest rates, be sure to ask about the interest rate for lower loan to value percentages.

4. Pay Discount Points. Always consider paying discount points, or higher fees, for a lower interest rate. One discount point, 1% of the loan amount or $1,000 per $100,000 borrowed, will give you a lower interest rate on any quoted mortgage program. You will need to analyze the cost of the lower interest rate against the monthly savings that the lower rate will bring for your mortgage payment. If you pay $2,500 to lower the interest rate by 1/4% on a $250,000 loan, this will save you approximately $600 per year in interest expenses. If you plan to stay in your house for more than 4 years ($600 for 4 years), then paying a point to get a lower interest rate will benefit your pocketbook past year 4 for the remaining length of the mortgage loan.

Current Arizona renters are also leaping into the realm of first-time home buying, filled with thoughts and concerns of down payments and credit scores. Of course, if the renters don’t move quickly, they will find themselves priced completely out of the Arizona housing market.But the lending process can be so difficult and nerve-racking; how do you know who to trust? Are the rate and terms given to you by one lender truly the best available to you in your situation? In order to assist you in making the best possible decision for one of the most important purchases in your life, we’ve compiled a list of 4 tips to help you find a better Arizona lender:

The first tip: Do your homework. Research and educate yourself on the home loan and lender process, taking into account all laws governing the mortgage industry in Arizona. Lender fees, closing costs, points, escrow, adjustable rates and pre-payment penalties are just a few costs associated with a home loan.

The second tip: Get several quotes from multiple Arizona lenders. Leaving the entire mortgage process to just one lender is leaving yourself wide open to be charged astronomical fees and interest rates, and you won’t know any better because you have nothing to compare these costs to. Some mortgage brokers receive their payment from you (the borrower), lenders (financial institutions) or both. Some mortgage brokers will receive “kick-backs” to “sell” you one particular program over another. Multiple quotes are your best protection against being taken advantage of.

The third tip: Ask questions. Don’t be afraid to ask as many that you feel are necessary, as this is your home, your loan and your money. Ask about lender fees, points, as well as anything else that a lender might “accidentally” forget to inform you about. Ask them about the “Good Faith Estimate” and when you should expect to receive it.

The final tip: Don’t get personal. Mortgage professionals are working to make money, as are we all. Although some lenders will have a conscience, it’s relatively difficult to trust someone (who works on a commission basis) to truly have your best interest at heart. If you work with multiple Arizona lenders, be sure to inform each of them that they aren’t the only mortgage provider in your book. Competition is key throughout this industry, and you may just be setting yourself up for some great benefits, like free appraisals, lower fees, and a fabulous new mortgage to tell your friends about.

If you’re looking to sell a house fast, here are a few scams to be on the lookout for and how to avoid becoming a victim yourself.

Equity Skimming-One of the most common types of “we buy houses” scams allows the “buyer” of the home to make off with most or all of your equity. It begins with you transferring your home’s deed to the “buyer.” The buyer may then have you make payments to him instead of the mortgage company, or he may have you move out so he can begin renting out the house.There are several ways the buyer can then profit from this transaction.

First, he receives some sort of payment every month — whether from you or from the renter. Second, he can use the equity in your home to secure home equity loans or other lines of financing. Third, he can simply resell the house without satisfying the outstanding mortgage.Ultimately, once most of his profit is exhausted, he simply stops making payments on the mortgage and allows the home to go into foreclosure, because while he holds the deed to the home, he never assumed liability for the mortgage. As a result, you are left with a foreclosed home, no remaining equity and a significant black spot on your credit history.

Contract Bait and Switch- The contract “bait and switch” is a clever scheme that takes advantage of the trust between buyer and seller.In one version of this scam, the home buyer inspects your house and makes a verbal offer that you accept. A few days later, he presents you with a written contract that he presents as “just a formal, legal version” of your verbal agreement. Because you believe it to be the same offer you had already agreed to, you simply skim it and sign on the dotted line.

In the time between signing and closing, he may also deliver one or more “minor changes” to the contract. He presents these as simply “a few tweaks” and nothing that really affects the original agreement.At some point, though, possibly at the closing or even later, you discover that the last contract you signed actually bears little resemblance to the initial offer, and you are either stuck with a losing home sale or tangled in legal battles for months or even years to get out of the contract.

Liberian FSBO- This scam is an interesting twist on the Nigerian Scam or 419 Scam. In it, a person outside the U.S. contacts you after seeing your house on a For Sale By Owner site, telling you that he is looking to move to the U.S. soon and can pay cash for your home. His story is compelling to the point that you actually feel good about helping him out — not to mention being able to sell your home.

Ultimately, though, his only goal is to get you to transfer him money and/or to get access to your bank account so that he can transfer the funds himself before you realize what has happened. And because he is outside the U.S., recovering your money can be next to impossible.

How to Protect Yourself from Scams- If you need to sell a house fast, here are a few rules for protecting yourself from falling prey to a scam like these.

Only Work with Professionals- The best way to protect yourself from scams is to work only with professionals who have an established history of home buying. These days, anyone can order a book from an infomercial and become a “professional home buyer,” but real professionals have been in business for many years and have closed millions of dollars in real estate transactions. Their primary concern is the health of their business, and they will not risk that by cheating you or otherwise treating you unfairly.

Check Out the Buyer- If you have any concerns about the buyer, don’t hesitate to check them out. Contact your state Attorney General’s office, your state’s Real Estate Commission, or your District Attorney’s Consumer Fraud Unit. If they are an established business, also check out the Better Business Bureau.

Always Understand What You’re Signing- Not asking questions because you are afraid of looking stupid could end up costing you tens of thousands of dollars or more if you end up in a deal that wasn’t what you thought it was. A lawyer or even your mortgage company can help you if you want professional advice from a third party. Never, ever sign a contract that you don’t understand.

Get All Agreements in Writing- If a disagreement arises about a verbal agreement, the issue becomes your word against theirs and often must go to a court of law to be settled. Don’t risk that. Insist that all terms be in writing, and don’t agree to anything that isn’t.

Be Willing to Walk Away- If you have any doubts about the buyer or the contract — or if it just doesn’t feel right — just walk away. It’s never worth the months (and maybe years) of future headaches to sell your house a few days sooner.

Conclusion- If something sounds too good to be true, it usually is. So don’t get so emotionally tied up in the sale of your home that you abandon caution and logic. Your home is both a major financial obligation and a major asset. Falling prey to a scam like these will have major repercussions many, many years down the road — and maybe for the rest of your life.

When The Bills Stack Up

Sometimes, we make poor financial decisions. We buy things we don’t need. We spend money without stopping to reflect whether it’s a wise choice to do so. Other times, circumstances beyond our control buffet us about, causing money problems. Medical bills, unemployment and the economy can simultaneously wreak havoc on our financial lives. When that happens, the hefty mortgage payment that you struggle to pay each month can become unmanageable. Soon, you begin falling behind on the payments. When repossession looms, it’s easy to become frightened. But, you do have options.

Knowing Your Options

A repossession threatens to take your house away from you. If this happens, you’ll need to find another place to live. However, by selling your house and renting it from the new owner, you can escape the crushing force of the mortgage payment while continuing to live in your home. Plus, by selling your home, you’ll have the extra money you need to pay down other bills. Your credit cards, medical bills and other financial obligations can be eliminated.

Remain In Your House Without Worry

Thousands of people have been losing their homes to repossession. The banks have repossessed them when the owners haven’t been able to make the mortgage payments. When you originally purchased your house, you never intended to miss a payment. The thought of buying your own home motivated you to do whatever was necessary to protect your property.

But, things can quickly spiral out of control. When they do, it’s important that you realize that there is a way you can remain in your house without the worry of having it taken from you. If you’re having trouble making the payments on your mortgage and the repossession letter from the bank is around the corner, consider selling and renting your home back. For many, this is the perfect solution to an emotionally devastating event.

About The Author:
This article was written on behalf of Properties Direct ltd who offer cash for property to allow customers a quick property sale.