Craig Romero/Mortgage Analyst's Profile

My Personal Credentials Behind Mortgage Cycling

1. For 6 years I’ve served as senior mortgage analyst for the leading financial reporting firm in the country. My position requires that I carefully follow every mortgage reduction trend that hits the market. I then analyze those trends and submit mortgage reports and articles to various lenders. You can read some of my articles on this website or type "Craig Romero Mortgage" in Google to find other websites who rely on my mortgage reduction knowledge.

2. I'm also the author of 2 successful books on mortgage reduction titled "Homeowners Hidden Fortune" and "Biweekly Mortgages Explained".

3. I've also helped over 2,000 families successfully pay off their mortgage debt early.

4. I know mortgage reduction inside and out…and I’ve dedicated the last 4 years of my life to developing a loophole that works far better than a biweekly mortgage payment plan.

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Mortgage Cycling Allows You To:

1. Build at least $40,000 worth of home equity in a very short period of
time without making any changes to your current mortgage.
Imagine having $40,000 in cash to finally remodel your old kitchen into that beautiful chef style kitchen you've always wanted...the one with granite countertops, and beautiful stainless steel appliances…my report enables you to do this.

More than likely, you'll have built enough equity with this plan to remodel more than just your kitchen...maybe your entire house needs a facelift or even add a swimming pool. The possibilities are endless... and the best part is, not only does this make your home more attractive and comfortable, but also increases its overall value.

…Or, imagine having an extra $40,000 to put down on a second home or an investment property. This plan will allow you to own multiple properties in a short period of time...By combining the power of “Mortgage Cycling” with real estate investing you could easily provide yourself with a very successful living. I show you exactly how to do this in my report.

…Or, Take your family on that long needed vacation...and still have money left over for your kitchen remodel.

There’s also the option of using the equity to provide a solid education for your children by sending them to the best schools. If you've ever wanted to send your children to exclusive, private school or college but couldn't afford it...then this plan gives you that opportunity.

Imagine being able to boost your retirement plan by $40,000 $50,000 or even $100,000...you could either retire years earlier or have that much more money to retire on.

2. Pay your mortgage off faster than using a biweekly mortgage plan.
Imagine paying off your mortgage in a few short years. This would free up a huge chunk of cash every single month. Money that used to be an expense every month is now part of your income. For some people this is an extra $800 per month in your pocket, for others it's an extra $1,800 per month.

A biweekly mortgage can only cut 8-10 years from your mortgage. Why even hassle with a biweekly mortgage? With Mortgage Cycling you'll pay off your mortgage in 10 years or less.

Demystifying the Reverse Mortgage

Demystifying the Reverse Mortgage
by Craig Romero

The term is being heard by homeowners near and far, but what exactly is a “reverse mortgage?” It’s a relatively new option, and one that is surrounded by many myths and misunderstandings. When you get down to it, a reverse mortgage is a rather simple and straightforward option for many homeowners who can take advantage of the benefits that this mortgage method affords them. A reverse mortgage is a loan on a home that does not have to be paid back for as long as the homeowner lives in that home. To qualify for a reverse mortgage, homeowners must meet certain criteria, and normally must be 62 years of age or older. This type of mortgage offers homeowners the benefit of taking out a home equity type of loan, without the obligation of having to make monthly payments to repay the money borrowed. With today’s economy, and so many senior citizens living at or below poverty level, this relatively new mortgage program may offer the perfect opportunity for qualifying seniors to get back on their feet.

There are three main types of reverse mortgage programs offered today. They fall into three categories:

1. FHA Insured
2. Lender Insured
3. Uninsured

The exact details of each of these reverse mortgage types differ, and for homeowners thinking about pursuing a reverse mortgage program, a reverse mortgage counselor should be consulted to find out which type of reverse mortgage best suits your needs.

With a standard or “forward” mortgage or home equity loan, a home owner is responsible for making monthly payments to repay the debt of the loan. Reverse mortgages only require the homeowner or the homeowner’s heirs to pay the loan back when the homeowner is no longer living in the home. If the homeowner decides to sell the home and move out, the loan will be paid back by the proceeds of the home sale. If the homeowner has passed on, and the heirs are responsible for paying the reverse mortgage back, the mortgage can be satisfied by rolling the reverse mortgage into a “forward” mortgage or selling the home and using the proceeds to satisfy the loan requirement.

When a homeowner does opt for the reverse mortgage option, there are three main ways that they receive the funds from the loan. Homeowners can receive a one-time lump sum in cash, a regular monthly cash disbursement, or an open credit line that allows the homeowner to determine how and when they need the funds paid to them.

If you, or someone you know, is a homeowner 62 years of age or older and is in need of cash to cover their daily living expenses or would like their home to provide a source of regular income, this is an option that is growing ever popular and should be looked into and considered.


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Are the Costs of "No Cost" Refinancing Worth It?

Are the Costs of "No Cost" Refinancing Worth It?
by Craig Romero

Homeowners looking to refinance are being hit with the option of “no cost” refinancing. It is extremely appealing to homeowners who do not have the cash on hand to pay the costs of conventional refinancing or refinancing through an upfront mortgage broker.

But does “no cost” refinancing actually come with no cost to the borrower? Not always. When the big picture is taken into account, some “no cost” refinancing actually has costs that are pretty steep, but well hidden. Most no cost financing options will have you paying ½ a point to 5/8 of a point more in interest than you would with a full-cost loan.

Is there ever a good reason to take advantage of a “no cost” refinance? Yes, if the interest rate you are paying now is significantly lower than the current “no cost” refinance rates. You may also want to consider this type of financing if you plan on being in the house for a short period of time, say from one to three years.

If you are not sure how long you are going to be in your home, it is still okay to pursue a no cost loan, and if you wind up staying in the home for a long period of time, you can refinance at a later date.

For borrowers who are considering a no cost refinance because they can not afford the costs to refinance, dig a bit deeper. Many times when you refinance you can roll the costs of your refinance into your loan, enabling you to refinance without a large amount of money up front.

If you do decide to opt for a no cost refinance, make sure that you are truly getting a no cost, and not a hidden cost. With a no cost loan, you will not be paying the lender fees or settlements; the lender pays for these without increasing the cost of your loan. You will however be responsible for per diem interest and escrow costs, though your escrow costs will be credited at closing by your old lender.




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Stop Giving Away Your Equity

Stop Giving Away Your Equity
by Craig Romero, Mortgage Analyst



Do you know that every year you're giving away the hard-earned equity in your home by paying more than you have to in interest? Most home owners don't realize they can cut up to seven years off of the length of their mortgage, saving thousands of dollars in the process. Think it doesn't add up to a lot?

Think again. Let's lowball it and say you have an $80,000 mortgage and are paying an interest rate of 7 percent. How much will a bi-weekly payment method save you, versus paying the conventional mortgage off over 30 years?

Believe it or not, you would be saving over $25,000. The more your loan amount or the higher your interest, the more money this you can save. When you pay your mortgage bi-weekly, there are a number of factors that come into play.

You're reducing the term of your loan by up to eight years, you're paying less interest over the life of your loan and you're building up equity in your home sooner because more of your money is going towards principal than interest. The savings don't end there.

Due to the fact that your mortgage will be paid off years in advance, you will be able to discontinue your private mortgage insurance earlier than you would if you were paying over a full 30 years, thereby saving you even more money.

The bi-weekly mortgage method is also a wonderful option for people who want to pay off their homes in a shorter period of time than the conventional thirty year mortgages allow, but who don't qualify for a standard 15 year mortgage. It offers homeowners more convenience and flexibility than a fifteen year mortgage.

With a fifteen-year mortgage, if you want to change to a thirty-year mortgage, you would have to refinance. With the bi-weekly payment plan, if your circumstances temporarily change you and need to pay on a monthly basis for a period of time, there is no refinancing necessary.

So how much is someone going to charge you to save you thousands of dollars and build up quick equity in your home? There are various services available to homeowners that will take control of this process for you.

If you use them, you're wasting some of the money you're going to be saving by using this payment method in the first place. There is really no reason to enlist the help of a company to do this for you, when with the proper tools and information, you can do it yourself.

Unless you're independently wealthy and don't care where your money goes, then you will definitely want to look into paying off your mortgage on the bi-weekly plan, and learning how to do it on your own.



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Already Refinanced? Do it Again!

Already Refinanced? Do it Again!
by Craig Romero

Many homeowners are under the mistaken impression that if they have already refinanced their home, that is it, they can not do it again.

Wrong. Many people can, and do, refinance their homes a second time, sometimes more.

There is a definite increase in the trend of refinancing more than once among homeowners today. It only makes sense that if something saved you money once and can save you money again, you should take advantage of it; and homeowners across the nation seem to be catching on.

More and more people find themselves refinancing a second time. Some homeowners are even refinancing within a few short months of their first refinance process.

When should you refinance a second time? It’s a personal choice and depends on a number of factors, but a safe rule of thumb to follow is to refinance when you can save one to two percent, or more off your current mortgage rate by doing so.

It’s also important to note that when you refinance a second time, you will be able to deduct the points of the entire current loan off of your taxes.

When you're paying the loan off monthly over a period of years, the deductions for points must be taken gradually as well. By refinancing a second time, you get to deduct the points all at once.

The best way to make refinancing a second time affordable to you is to seek out no-cost refinancing options. By doing this, the only costs you will usually incur up front are the appraisal costs, and if you can use the appraisal from the first refinancing, you will save even more money.

The tax savings may even be enough to pay for the costs involved with the refinance. Of course you should consult with a tax advisor to determine exactly how these rules can benefit you.

So when does refinancing a second time not make sense? When there is a prepayment penalty, especially if you have already paid a prepayment penalty with the first refinance. Before refinancing, it is very important for homeowners to check if there is a prepayment penalty policy with their existing mortgage.

In today’s economy it is so important for consumers to save money and tighten the belt in any way they can, and if that means refinancing a second time, they should go for it.



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A Whole Different Kind of Mortgage Broker.

A Whole Different Kind of Mortgage Broker
by Craig Romero

There's a different kind of mortgage broker on the block, and they're giving conventional mortgage brokers a run for their money. With today's current economy, consumers have to be as budget conscious as ever, and it's showing in every consumer decision they make - including shopping for a mortgage.

Gone are the days where the consumer waits with baited breath as to whether or not the corner mortgage broker can find financing for the home they want to buy.

Say hello to today's new mortgage seeker; the one who has lenders competing for their business, makes educated lending choices and is making upfront mortgage brokers more popular than ever. So what is an upfront mortgage broker? The main difference between an upfront mortgage broker and a conventional mortgage broker is that an upfront mortgage broker discloses their fees to the borrower up front and in writing.

The borrower will pay the broker a fee in addition to paying the wholesale loan price. With conventional mortgage brokers, borrowers don't know the true cost of the loan until after the application has been submitted. The conventional lenders add a markup to the wholesale rate of the mortgage to make their profit. While on the surface it may seem like the prices quoted by upfront mortgage brokers compared to the quotes received by conventional lenders would not be the wise choice, don't be fooled.

The quotes you get from an upfront mortgage broker will be an accurate reflection of what you're really going to pay. Just because a conventional mortgage broker promises you the moon, does not mean that he can actually deliver it. There are other reasons that have conscious consumers choosing upfront mortgage brokers over the traditional conventional brokers.

While conventional mortgage brokers don't always have the best interests of their customers in mind, upfront mortgage brokers gain nothing by providing their borrowers with anything other than the mortgage that best suits their needs.

There are also times when mortgage brokers are given rebates by third parties.While a conventional broker may keep this rebate as a part of their profit, an upfront mortgage broker will always pass this rebate on to the borrower.

With consumers appreciating honesty and no-nonsense approaches when dealing with their lending needs, upfront broker methods may just change the face of mortgage lending forever.



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