Mortgage Freedom allows individuals with bad credit to purchase homes, regardless of income or employment status. These homes come with the full inherent risk of ownership, including potential liens against the property and possible property seizure. Mortgage Freedom provides an alternative to risky subprime mortgages for individuals and families who need a mortgage but don't necessarily qualify for Fannie Mae or Freddie Mac programs. In addition, this mortgage is not backed by the United States government, but is instead backed by private investors.
If you are interested in purchasing a new home and don't currently qualify for either Fannie Mae or Freddie Mac mortgage programs, or if you are retired persons, you can look into getting a government mortgage refinance. This government backed mortgage refinance loans offer lower interest rates and a longer time frame to pay down the principal of your mortgage. For instance, a thirty-year fixed rate mortgage can be paid down to fifteen years over a five year period with mortgage payments. Of course, the longer you take to repay your mortgage, the more your home will appreciate in value. There are many tax advantages to this type of mortgage, as well. While you may not be able to deduct any interest paid on your mortgage interest payments, if you have eligible deductions on your tax return, you could be eliminating hundreds of dollars in income tax payments every year.
However, there are a few disadvantages to this government mortgage refinance loans. First, the interest rates are often exceptionally high, up to fifteen percent above the current market interest rates. This can add up to huge monthly payments, which may make it difficult to keep up with mortgage payments. Also, many people who purchase these mortgages find that they end up paying way more in principle than the actual loan amount borrowed.
Private mortgage lenders offer a number of advantages over government backed mortgage lenders. While you cannot deduct interest on your mortgage interest payments with a private lender, you can deduct the interest on your mortgage loan itself. As a result, some people find that they can save hundreds of dollars every month by paying their mortgage off early and refinancing their home with a private mortgage lender. When compared to the combined payment on their Fannie Mae or Freddie Mac mortgage, their saving can seem almost instant. In addition, many private mortgage lenders offer special financing options, such as reduced interest rates and additional time to pay down the mortgage as well as other benefits, such as cash back or credit.
Government mortgage refinance loans also have their drawbacks, as most Americans have discovered. Typically, you are locked into the interest rate, which is determined by the federal government, for the life of the mortgage. This can mean that even when the interest rates are low, your mortgage payments will still be high. There is little wonder why so many Americans have found themselves back into the same financial hole after making their mortgage payments for several years.
Fortunately, there is an answer to financial freedom through lower interest mortgages and home ownership. Private mortgage lenders offer the flexibility to adjust mortgage interest rates to your specific needs and make your payments at the appropriate level. In fact, if your income has changed since you took out your mortgage, many private mortgage lenders will help you adjust to a new income level. You can pay a higher down payment, reduce your interest rate or any number of other adjustments to get your mortgage payments to meet your needs. And, with today's aggressive lending and record-breaking home prices, you can afford the home you want - with or without refinancing.
If you are looking for freedom from mortgage payments, consider refinancing to lower your mortgage, especially if your credit is strong. Talk to a local real estate agent to see if your mortgage status may qualify you for a no documentation loan or a modified loan. These programs will help you take advantage of 0 percent financing. You can use the funds to make your first, third or tenth mortgage payments. Or, if you are close to reaching a foreclosure, consider a short sale. It is a quick way to rid yourself of a mortgage you don't need and can save your home from going into foreclosure.