Apr
15
Filed Under Mortgage | Leave a Comment
Gregory van Duyse asked:
You have probably heard that it is better to make your home loan payments as frequently as possible. How can we best understand this concept?
Let us look at the two different ways of making weekly or twice monthly payments (prêt hypothécaire).
-accelerated weekly payments
-minimum weekly payments
The most common method is the accelerated weekly payment. It is really the monthly payment divided by 4. But in reality, there is not 4 weeks in a month, but a little more. This method is called the accelerated payment method because is has 4 extra weekly payments over a whole year and this fact by itself increases the payment made against the capital of the home (prêt hypothécaire) loan during the year.
The other method is the minimum weekly payment. It is the minimum payment that you can make on your mortgage until the end of the amortization period, and the home loan is fully paid.
It is clear that the savings from these different two mortgage payment (hypotheque) methods is not alike. The minimum weekly payment only increases the frequency of the payments from 12 times a year to 52 times a year, and the accelerated weekly payment increases not just the frequency of payments, but also adds 4 additional payments.
Let’s look at the result of my studies on mortgage payments for these two cases.
The minimum weekly payment
Summary:
1. The minimum weekly payment method saves $1,294.12 on a $200,000 loan amortized over 25 years with an interest rate of 5.4%, in comparison with monthly payments - hypothèque.
2. The higher the interest rate, the better the weekly payment will fare. If the rate is doubled, the savings will be 7.08 times more.
3. One receives 43% more savings with a weekly payment than with a payment every two weeks (14 days) and the rate of interest does not make a difference.
Why?
The explanation is simple, but difficult to describe. Since there is less time between each payment, one part of the capital is repaid a few days earlier, which more rapidly reduces the interest paid on the amount that is paid down. The savings is small for each payment but increases dramatically over time.
Conclusion: The more frequent the payments, the greater the savings, even if you do not increase the amount paid. If it is possible, make your payments each week, if not, pay your mortgage every two weeks - prêt hypothécaire.
The accelerated weekly payment
An accelerated weekly payment will increase the payments on a mortgage by $23.25 per week on the $200,000 mortgage, amortized over 25 years at 5.4%.
In this case, the home will be paid for in 1,107 payments, or 21.3 years.
The total savings will total $28,173.78i (please refer to the calculations at the end of the article.)
However, you are better off not to make accelerated payments if you have a fixed or guaranteed investment that pays 7.52% per year before taxes.
It is important to choose the best payment method for your mortgage, but the most important thing of all is to choose the best mortgage strategy.
Notes : If someone buys a home for $200,000 (with a rate of 5.4%) and pays it once a month ($1,209.16 a month), he will have paid $362,749.83 after 25 years ($200,000 plus $162,749.83 in interest); on the other hand, with accelerated weekly payments ($302.29 per week), he will have paid $334,576.05 ($200,000 plus $134,576.05 interest) in 1,107 weeks our 21.3 years. This is a savings of $28,173.78 ($362,749.83-$334,576.05) to pay the same mortgage.
EZRA
You have probably heard that it is better to make your home loan payments as frequently as possible. How can we best understand this concept?
Let us look at the two different ways of making weekly or twice monthly payments (prêt hypothécaire).
-accelerated weekly payments
-minimum weekly payments
The most common method is the accelerated weekly payment. It is really the monthly payment divided by 4. But in reality, there is not 4 weeks in a month, but a little more. This method is called the accelerated payment method because is has 4 extra weekly payments over a whole year and this fact by itself increases the payment made against the capital of the home (prêt hypothécaire) loan during the year.
The other method is the minimum weekly payment. It is the minimum payment that you can make on your mortgage until the end of the amortization period, and the home loan is fully paid.
It is clear that the savings from these different two mortgage payment (hypotheque) methods is not alike. The minimum weekly payment only increases the frequency of the payments from 12 times a year to 52 times a year, and the accelerated weekly payment increases not just the frequency of payments, but also adds 4 additional payments.
Let’s look at the result of my studies on mortgage payments for these two cases.
The minimum weekly payment
Summary:
1. The minimum weekly payment method saves $1,294.12 on a $200,000 loan amortized over 25 years with an interest rate of 5.4%, in comparison with monthly payments - hypothèque.
2. The higher the interest rate, the better the weekly payment will fare. If the rate is doubled, the savings will be 7.08 times more.
3. One receives 43% more savings with a weekly payment than with a payment every two weeks (14 days) and the rate of interest does not make a difference.
Why?
The explanation is simple, but difficult to describe. Since there is less time between each payment, one part of the capital is repaid a few days earlier, which more rapidly reduces the interest paid on the amount that is paid down. The savings is small for each payment but increases dramatically over time.
Conclusion: The more frequent the payments, the greater the savings, even if you do not increase the amount paid. If it is possible, make your payments each week, if not, pay your mortgage every two weeks - prêt hypothécaire.
The accelerated weekly payment
An accelerated weekly payment will increase the payments on a mortgage by $23.25 per week on the $200,000 mortgage, amortized over 25 years at 5.4%.
In this case, the home will be paid for in 1,107 payments, or 21.3 years.
The total savings will total $28,173.78i (please refer to the calculations at the end of the article.)
However, you are better off not to make accelerated payments if you have a fixed or guaranteed investment that pays 7.52% per year before taxes.
It is important to choose the best payment method for your mortgage, but the most important thing of all is to choose the best mortgage strategy.
Notes : If someone buys a home for $200,000 (with a rate of 5.4%) and pays it once a month ($1,209.16 a month), he will have paid $362,749.83 after 25 years ($200,000 plus $162,749.83 in interest); on the other hand, with accelerated weekly payments ($302.29 per week), he will have paid $334,576.05 ($200,000 plus $134,576.05 interest) in 1,107 weeks our 21.3 years. This is a savings of $28,173.78 ($362,749.83-$334,576.05) to pay the same mortgage.
EZRA
Apr
13
Filed Under Mortgage | Leave a Comment
Usha Pradhan asked:
The word mortgage comes from the Old French word morgage which means literally “death-pledge.” It is a form of debt that is secured by the borrower’s real estate property and usually is for the acquisition of the real estate property that the mortgage is being placed on. This allows the borrower to purchase real estate without having to pay its entire value up-front. There happen to be many different types of mortgages including but not limited to: Fixed Rate Mortgages, Adjustable Rate Mortgages, Balloon Mortgages, FHA Mortgages, and Shared Appreciation Mortgages.
Fixed Rate Mortgages, as the title implies, have a fixed interest rate that will simply not change for the entire duration of the loan. The monthly payments are usually, but not always, a fixed amount as well. With an FRM the principal payment rises with each payment; the first payments are mostly interest, but with each payment the principal is a bit larger and the interest is a bit smaller. FRMs have different terms and usually last for 10 to 40 years.
With an Adjustable Rate Mortgages the interest rate can go up or down in accordance with the market at pre-designated intervals. The payments are determined by indexes such as Treasury Bills or the average national mortgage rate. The general appeal of these mortgages is that they often begin with a very low interest rate that gradually rises over time. The unpredictability of these loans has lead many to criticize them for preying on young homeowners who don’t know any better.
Balloon Mortgages mature before the principal and interest have been paid off and the remainder is due in one large lump sum. They can be divided into two different kinds: Interest-only and Rollover. In an Interest-only loan, payments cover only the interest. The Rollover Mortgage is short term and must be refinanced at the end of the 3-5 year term. The Balloon Mortgages provide excellent protection against future interest rate hikes, but its short term nature and strict payment plan may make it a bit too risky.
An FHA Mortgage loan is federally insured by Federal Housing Administration. This gives lenders protection in case the borrowers default on their loan. It all began in the Great Depression when banks were refusing to give people mortgages and continues to operate today as a way for those with less than ideal credit to get mortgages. This type of loan requires the borrower to pay monthly mortgage insurance for 5 years or until the loan is paid down to 78%.
Finally, a Share Appreciation Mortgage is a loan where the borrower receives a low below market rate of interest, but must share part of the appreciation of property value with the lender for a number of years. At the end of this term, the borrower must pay the lender its share of the appreciation in cash, even if it means selling the property in order to come up with it. It’s a risk for the lender as well as the property can always decrease in value.
RANDOLPH
The word mortgage comes from the Old French word morgage which means literally “death-pledge.” It is a form of debt that is secured by the borrower’s real estate property and usually is for the acquisition of the real estate property that the mortgage is being placed on. This allows the borrower to purchase real estate without having to pay its entire value up-front. There happen to be many different types of mortgages including but not limited to: Fixed Rate Mortgages, Adjustable Rate Mortgages, Balloon Mortgages, FHA Mortgages, and Shared Appreciation Mortgages.
Fixed Rate Mortgages, as the title implies, have a fixed interest rate that will simply not change for the entire duration of the loan. The monthly payments are usually, but not always, a fixed amount as well. With an FRM the principal payment rises with each payment; the first payments are mostly interest, but with each payment the principal is a bit larger and the interest is a bit smaller. FRMs have different terms and usually last for 10 to 40 years.
With an Adjustable Rate Mortgages the interest rate can go up or down in accordance with the market at pre-designated intervals. The payments are determined by indexes such as Treasury Bills or the average national mortgage rate. The general appeal of these mortgages is that they often begin with a very low interest rate that gradually rises over time. The unpredictability of these loans has lead many to criticize them for preying on young homeowners who don’t know any better.
Balloon Mortgages mature before the principal and interest have been paid off and the remainder is due in one large lump sum. They can be divided into two different kinds: Interest-only and Rollover. In an Interest-only loan, payments cover only the interest. The Rollover Mortgage is short term and must be refinanced at the end of the 3-5 year term. The Balloon Mortgages provide excellent protection against future interest rate hikes, but its short term nature and strict payment plan may make it a bit too risky.
An FHA Mortgage loan is federally insured by Federal Housing Administration. This gives lenders protection in case the borrowers default on their loan. It all began in the Great Depression when banks were refusing to give people mortgages and continues to operate today as a way for those with less than ideal credit to get mortgages. This type of loan requires the borrower to pay monthly mortgage insurance for 5 years or until the loan is paid down to 78%.
Finally, a Share Appreciation Mortgage is a loan where the borrower receives a low below market rate of interest, but must share part of the appreciation of property value with the lender for a number of years. At the end of this term, the borrower must pay the lender its share of the appreciation in cash, even if it means selling the property in order to come up with it. It’s a risk for the lender as well as the property can always decrease in value.
RANDOLPH
Apr
9
Filed Under Mortgage | Leave a Comment
Jeffry Evans asked:
An adjustable rate mortgage (often referred to as an ARM) is a type of loan that offers a varying rate of interest at different times during the repayment period. These rate changes often occur on an annual basis, and depend on market conditions as to whether the rate will increase or decrease. ARMs are attractive because they usually offer lower initial rates of interest than comparable fixed rate mortages. The 5 things you need to know about adjustable rate mortgages are:
1. Know when the rate is subject to change. Some common examples of an ARM include:
* 3/1 ARM - Rate is fixed for the first 3 years, then subject to change once per year thereafter.
* 5/1 ARM - Rate is fixed for the first 5 years, then subject to change once per year thereafter.
* 7/1 ARM - Rate is fixed for the first 7 years, then subject to change once per year thereafter.
2. Know what the rate increase ceiling is (if the loan even has a rate ceiling).
Typically, adjustable rate mortgages will offer a contractual maximum increase per year so the loan doesn’t get out of control. I have seen some offer around 2% for an annual rate increase ceiling (meaning if your rate was 6%, then the rate could not increase to more than 8% the next year). Many ARMs also offer a total rate ceiling, usally offered as a fixed addition, e.g.the rate cannot increase more than 6% for the life of the loan. These are very important conditions that anyone interested in an adjustable rate mortgage should look for and evaluate.
3. Have a plan for the future.
If you plan to sell the house before the adjustment period of the ARM begins, then maybe it is a viable option to consider. If you want to buy a little more house, and you think you will obtain better employment or a higher salary later, adjustable rate mortgages offer a lower initial monthly payment due to the lower initial interest rate. If you are looking to buy a house to live in for some years to come, think twice before getting an ARM; fixed rate mortgages tend to be better for this situation.
4. Ask the lender about market conditions.
Have rates been falling or increasing in the last 5 years? What does the lender think will happen over the next five to ten years? At the time of the writing of this article, rates were at 40 year lows, and are expected to increase over the next few years. Not the best time for an ARM in my opinion. If rates were substantially high, and expected to decrease in the coming years, adjustable rate mortgages would be more attractive to the borrower.
5. Review the worse possible scenario.
Using the information obtained from the lender, get an understanding how bad it could be. If the loan increased to the maximum interest allowed in the contract, how much would that cost me per month? Can I really afford it? Ask the lender as many questions as you can think of. Review the truth in lending (typically referred to as the good faith estimate) provided by the lender. Specifically, review the total interest over the life of loan, and compare to other mortgage options.
RODRIGO
An adjustable rate mortgage (often referred to as an ARM) is a type of loan that offers a varying rate of interest at different times during the repayment period. These rate changes often occur on an annual basis, and depend on market conditions as to whether the rate will increase or decrease. ARMs are attractive because they usually offer lower initial rates of interest than comparable fixed rate mortages. The 5 things you need to know about adjustable rate mortgages are:
1. Know when the rate is subject to change. Some common examples of an ARM include:
* 3/1 ARM - Rate is fixed for the first 3 years, then subject to change once per year thereafter.
* 5/1 ARM - Rate is fixed for the first 5 years, then subject to change once per year thereafter.
* 7/1 ARM - Rate is fixed for the first 7 years, then subject to change once per year thereafter.
2. Know what the rate increase ceiling is (if the loan even has a rate ceiling).
Typically, adjustable rate mortgages will offer a contractual maximum increase per year so the loan doesn’t get out of control. I have seen some offer around 2% for an annual rate increase ceiling (meaning if your rate was 6%, then the rate could not increase to more than 8% the next year). Many ARMs also offer a total rate ceiling, usally offered as a fixed addition, e.g.the rate cannot increase more than 6% for the life of the loan. These are very important conditions that anyone interested in an adjustable rate mortgage should look for and evaluate.
3. Have a plan for the future.
If you plan to sell the house before the adjustment period of the ARM begins, then maybe it is a viable option to consider. If you want to buy a little more house, and you think you will obtain better employment or a higher salary later, adjustable rate mortgages offer a lower initial monthly payment due to the lower initial interest rate. If you are looking to buy a house to live in for some years to come, think twice before getting an ARM; fixed rate mortgages tend to be better for this situation.
4. Ask the lender about market conditions.
Have rates been falling or increasing in the last 5 years? What does the lender think will happen over the next five to ten years? At the time of the writing of this article, rates were at 40 year lows, and are expected to increase over the next few years. Not the best time for an ARM in my opinion. If rates were substantially high, and expected to decrease in the coming years, adjustable rate mortgages would be more attractive to the borrower.
5. Review the worse possible scenario.
Using the information obtained from the lender, get an understanding how bad it could be. If the loan increased to the maximum interest allowed in the contract, how much would that cost me per month? Can I really afford it? Ask the lender as many questions as you can think of. Review the truth in lending (typically referred to as the good faith estimate) provided by the lender. Specifically, review the total interest over the life of loan, and compare to other mortgage options.
RODRIGO
Mar
11
Filed Under Mortgage | Leave a Comment
Felix Maudio asked:
gage Payments: Get Your Mortgage Paid For FREE
The most important thing you must realize about a mortgage is that what you believe it to be is actually wrong. Often referred to as a mortgage home loan, they are not a loan in the traditional meaning of the word. The mortgagor is the person who owes money to the mortgagee (the person who finances the deal) using a legal contract called a mortgage. In fact, in reality, this isn\’t the debt but the security required by the lender to protect their interests for the duration of the term.
The facility that a mortgage creates means individuals and companies can acquire land or property without needing the full face value to purchase it at the time. To help understand how this works, some important information is discussed here. The mortgagor who is also referred to as the Borrower (leading to the false impression that it is a loan) and the mortgage, who is also called the Lender (again, falsely leading you to think that a loan has been agreed). The security the mortgagee uses is called a lien which is a legal term that stays in force until all monies are repaid.
The mortgagee\’s money is then protected by this knowing the property is in fact security against its own debt. The lien (document) is normally recorded at the local courthouse in the public records section. So while the property is recorded as yours, there is an interest in its ownership which cannot be altered until the debt is paid off. Even if your property is mortgaged, you still own the property wholly and completely and nobody else, not even the mortgagee has title to the property.
However if the mortgagor or the owner defaults on his or her payments, the mortgagee has the right to dispose of the property to reclaim funds. In the unfortunate event that requires the property to be sold or Foreclosed, then the case will need to be presented to the courts for approval. This is a further step but it is a legal formality which needs to be taken and is often referred to judicial foreclosure. This is only a short introduction as the subject is much more complex but this information should make this important issue much clearer.
Click Here To Get $1500 To Pay Your Mortgage Instantly!
LESLIE
gage Payments: Get Your Mortgage Paid For FREE
The most important thing you must realize about a mortgage is that what you believe it to be is actually wrong. Often referred to as a mortgage home loan, they are not a loan in the traditional meaning of the word. The mortgagor is the person who owes money to the mortgagee (the person who finances the deal) using a legal contract called a mortgage. In fact, in reality, this isn\’t the debt but the security required by the lender to protect their interests for the duration of the term.
The facility that a mortgage creates means individuals and companies can acquire land or property without needing the full face value to purchase it at the time. To help understand how this works, some important information is discussed here. The mortgagor who is also referred to as the Borrower (leading to the false impression that it is a loan) and the mortgage, who is also called the Lender (again, falsely leading you to think that a loan has been agreed). The security the mortgagee uses is called a lien which is a legal term that stays in force until all monies are repaid.
The mortgagee\’s money is then protected by this knowing the property is in fact security against its own debt. The lien (document) is normally recorded at the local courthouse in the public records section. So while the property is recorded as yours, there is an interest in its ownership which cannot be altered until the debt is paid off. Even if your property is mortgaged, you still own the property wholly and completely and nobody else, not even the mortgagee has title to the property.
However if the mortgagor or the owner defaults on his or her payments, the mortgagee has the right to dispose of the property to reclaim funds. In the unfortunate event that requires the property to be sold or Foreclosed, then the case will need to be presented to the courts for approval. This is a further step but it is a legal formality which needs to be taken and is often referred to judicial foreclosure. This is only a short introduction as the subject is much more complex but this information should make this important issue much clearer.
Click Here To Get $1500 To Pay Your Mortgage Instantly!
LESLIE
Feb
28
Filed Under Mortgage | Leave a Comment
FortLauderdale Mortgage asked:
Fort Lauderdale Morgage Broker
Any Fort Lauderdale mortgage broker that wants to get ahead and increase their business will certainly be turning to a provider of commercial Fort Lauderdale mortgage leads.
They get these leads by pushing a free Fort Lauderdale mortgage quote if the possible customer takes the time to fill out some pretty basic information and submit it to them. Once their information makes it to the advertising company, they are sure to receive a free guess within a specific amount of time. This saves them time and also provides Fort Lauderdale mortgage corporations the opportunity at a lead that may lead to a sale. It’s done with reverse Fort Lauderdale mortgage lead and just about each other conceivable finance related product.
Many Fort Lauderdale mortgage corporations will contact these lead generating firms to purchase the leads from them. This saves time and money for the Fort Lauderdale mortgage company because they do not need to spend any time researching potential business opportunities.
There are two types of Fort Lauderdale mortgage leads that may be bought. The most costly but also must helpful leads are the exclusive leads. An exclusive lead is only sold to one individual and that is why it costs so very much more.
If you want to have an exclusive lead and not need to compete against other Fort Lauderdale mortgage agents then it is surely worth the additional cash to get the Lead as an exclusive lead. By employing Fort Lauderdale mortgage leads you are bringing folks that are definitely considering getting a loan right to you which should lead to higher sales in a shorter amount of time.
RIGOBERTO
Fort Lauderdale Morgage Broker
Any Fort Lauderdale mortgage broker that wants to get ahead and increase their business will certainly be turning to a provider of commercial Fort Lauderdale mortgage leads.
They get these leads by pushing a free Fort Lauderdale mortgage quote if the possible customer takes the time to fill out some pretty basic information and submit it to them. Once their information makes it to the advertising company, they are sure to receive a free guess within a specific amount of time. This saves them time and also provides Fort Lauderdale mortgage corporations the opportunity at a lead that may lead to a sale. It’s done with reverse Fort Lauderdale mortgage lead and just about each other conceivable finance related product.
Many Fort Lauderdale mortgage corporations will contact these lead generating firms to purchase the leads from them. This saves time and money for the Fort Lauderdale mortgage company because they do not need to spend any time researching potential business opportunities.
There are two types of Fort Lauderdale mortgage leads that may be bought. The most costly but also must helpful leads are the exclusive leads. An exclusive lead is only sold to one individual and that is why it costs so very much more.
If you want to have an exclusive lead and not need to compete against other Fort Lauderdale mortgage agents then it is surely worth the additional cash to get the Lead as an exclusive lead. By employing Fort Lauderdale mortgage leads you are bringing folks that are definitely considering getting a loan right to you which should lead to higher sales in a shorter amount of time.
RIGOBERTO
Jan
28
Filed Under Mortgage | Leave a Comment
vinny asked:
short version:
pending forclosure by the second mortage while I am looking into a loan modification by the first mrotgage. What is the best option since I don’t even want the house anymore as it is a money pit.
So after 7 years of never missing a mortgage payment I had some hardships of seperation and the lose of a second job. Although the wife and I are pack after a 6 month split, I am in jeopardy of losing the house and need advice. I have a second and first mortgage and owe 145% on my home. Or owe $72,000.00 more then the house is worth. I am behind on both first and second. The first is trying to help with a loan mod but the second says they are going to pursue forclosure. What is my best option.?Short sale? died in lieu? let them forclose? will I have to pay the difference to both morgages? Please help!!! Frankly the house is a money pit and regreat ever believing i the second mortgage lender in them telling me the house was worth more then it really was. I ended up checking after the fact and the day we took the second the comps in the area were $35,000 less and my home was worth $31,000 less then what they wrote on paper just to ok the loan.
Can they garnish my wages?
I dont want the house so what is my best option?
Will I have to pay second mortgage back if there isn’t enough money?
BENNETT
short version:
pending forclosure by the second mortage while I am looking into a loan modification by the first mrotgage. What is the best option since I don’t even want the house anymore as it is a money pit.
So after 7 years of never missing a mortgage payment I had some hardships of seperation and the lose of a second job. Although the wife and I are pack after a 6 month split, I am in jeopardy of losing the house and need advice. I have a second and first mortgage and owe 145% on my home. Or owe $72,000.00 more then the house is worth. I am behind on both first and second. The first is trying to help with a loan mod but the second says they are going to pursue forclosure. What is my best option.?Short sale? died in lieu? let them forclose? will I have to pay the difference to both morgages? Please help!!! Frankly the house is a money pit and regreat ever believing i the second mortgage lender in them telling me the house was worth more then it really was. I ended up checking after the fact and the day we took the second the comps in the area were $35,000 less and my home was worth $31,000 less then what they wrote on paper just to ok the loan.
Can they garnish my wages?
I dont want the house so what is my best option?
Will I have to pay second mortgage back if there isn’t enough money?
BENNETT
Jan
7
Filed Under Mortgage | Leave a Comment
Nick Riviera asked:
When you look around for a mortgage deal you’re probably looking for the best deal you can find. The problem is finding the best mortgage deal to suit you.
News on mortgages has recently suggested that there has been a reduction in the number of mortgages available on the market, but with over 8,000 to choose from you’d be hard-pressed to notice the difference. How can you choose the best mortgage deal to suit you?
Your circumstances will be particular to you. You may have a healthy income; you may have a low income; you may have income earned from different sources; you may have an impaired credit rating; you may be a first-time buyer; you may be newly divorced; you may have low income but have inherited some money. There are probably more than 8,000 different scenarios! Finding the best mortgage deal is difficult.
What is interesting to note is the results of a survey showed that Building Societies offer 70% of the top 250 best mortgage deals on the market today. It suggests that you would be better off going to a building society for a mortgage than to a high street bank. It is interesting to see that the top mortgage lenders didn’t come out very well in the survey. Top lender HBOS did not have any products in the top 250. The Royal Bank of Scotland fared best of the top names, with six products from its group in the top 250.
If the top lender has no products in the top 250 mortgages, how is it still the top lender? There is a huge amount of information available to the public – especially with the internet at most people’s finger tips – and financial and mortgage advisors abound, yet still well-known high street brands are getting most mortgage customers to sign up with them.
The best know providers may be able to often the best solution to some people, but according to the survey, by Moneyfacts, the majority of borrowers would be better off looking at smaller lenders and building societies for the best mortgage deals.
For most people getting a mortgage will be the biggest financial transaction they will ever make. It is not really wise to base a decision like that on a brand name or the fact that you walk through the doors on your local high street. Getting a mortgage should be about getting the best mortgage deal to suit your own personal circumstances.
There are so many facilities around now to help you find the best mortgage deals, such as the internet, and mortgage advisors and mortgage brokers, who have access to the whole of the market, and are not tied in tow a single brand. Make use of the internet to do some groundwork, and understand more about the mortgage market. Then use a mortgage broker, who will almost certainly be able to find a mortgage that suits your individual needs, and is the best mortgage for you – not for the bank!
CARL
When you look around for a mortgage deal you’re probably looking for the best deal you can find. The problem is finding the best mortgage deal to suit you.
News on mortgages has recently suggested that there has been a reduction in the number of mortgages available on the market, but with over 8,000 to choose from you’d be hard-pressed to notice the difference. How can you choose the best mortgage deal to suit you?
Your circumstances will be particular to you. You may have a healthy income; you may have a low income; you may have income earned from different sources; you may have an impaired credit rating; you may be a first-time buyer; you may be newly divorced; you may have low income but have inherited some money. There are probably more than 8,000 different scenarios! Finding the best mortgage deal is difficult.
What is interesting to note is the results of a survey showed that Building Societies offer 70% of the top 250 best mortgage deals on the market today. It suggests that you would be better off going to a building society for a mortgage than to a high street bank. It is interesting to see that the top mortgage lenders didn’t come out very well in the survey. Top lender HBOS did not have any products in the top 250. The Royal Bank of Scotland fared best of the top names, with six products from its group in the top 250.
If the top lender has no products in the top 250 mortgages, how is it still the top lender? There is a huge amount of information available to the public – especially with the internet at most people’s finger tips – and financial and mortgage advisors abound, yet still well-known high street brands are getting most mortgage customers to sign up with them.
The best know providers may be able to often the best solution to some people, but according to the survey, by Moneyfacts, the majority of borrowers would be better off looking at smaller lenders and building societies for the best mortgage deals.
For most people getting a mortgage will be the biggest financial transaction they will ever make. It is not really wise to base a decision like that on a brand name or the fact that you walk through the doors on your local high street. Getting a mortgage should be about getting the best mortgage deal to suit your own personal circumstances.
There are so many facilities around now to help you find the best mortgage deals, such as the internet, and mortgage advisors and mortgage brokers, who have access to the whole of the market, and are not tied in tow a single brand. Make use of the internet to do some groundwork, and understand more about the mortgage market. Then use a mortgage broker, who will almost certainly be able to find a mortgage that suits your individual needs, and is the best mortgage for you – not for the bank!
CARL
Dec
8
Filed Under Mortgage | Leave a Comment
David Smith asked:
Finding the right mortgage broker is not easy. You need to get a commercial mortgage broker with the right mix of professionalism, expertise and service. At Oxford Funding, we have been in the business for the past twelve years and have many satisfied customers who keep returning whenever they have a new requirement.
Our approach to finance and funding is something that our clients appreciate. We offer expert advice on selecting the right kind of funding or mortgage option in the UK . We have clients all over the UK and have provided them with unbiased service as their Commercial Motgage Broker.
Our team of professionals has many years of experience in the industry and since we work as your mortgage broker, you gain the advantages of our knowledge. Many of us have also had the experience of running our own businesses and you will agree that there’s nothing like hands-on experience. This is what gives us an edge as your Commercial Motgage Broker.
Call our specialist brokers in these packages, Glin or Peter on 01242 226662.
We offer a wide portfolio of services from commercial mortgages to corporate finance and provide access to a huge network of lenders. Our services as a Commercial Morgage Broker can be availed by all types of businesses from sole traders to PLCs and private individuals.
We make it a priority to source you the funds at the best rates possible – that’s the primary benefit of coming to a mortgage broker. You’ll find us cheaper and more efficient than most other options. We provide commercial and other kinds of mortgage from £1000 to £1,000,000 but also deal above and below these figures.
When you want to secure a mortgage against your commercial property and use this to fund your business, we will work as your commercial mortgage broker and help you design and identify the mortgage that would suit your financial situation.
Taking out a commercial mortgage with us is usually far cheaper than what you would get in the general market. We act as your commercial mortgage broker to structure your loans in such a way that you get both short and long term benefits.
TONY
Finding the right mortgage broker is not easy. You need to get a commercial mortgage broker with the right mix of professionalism, expertise and service. At Oxford Funding, we have been in the business for the past twelve years and have many satisfied customers who keep returning whenever they have a new requirement.
Our approach to finance and funding is something that our clients appreciate. We offer expert advice on selecting the right kind of funding or mortgage option in the UK . We have clients all over the UK and have provided them with unbiased service as their Commercial Motgage Broker.
Our team of professionals has many years of experience in the industry and since we work as your mortgage broker, you gain the advantages of our knowledge. Many of us have also had the experience of running our own businesses and you will agree that there’s nothing like hands-on experience. This is what gives us an edge as your Commercial Motgage Broker.
Call our specialist brokers in these packages, Glin or Peter on 01242 226662.
We offer a wide portfolio of services from commercial mortgages to corporate finance and provide access to a huge network of lenders. Our services as a Commercial Morgage Broker can be availed by all types of businesses from sole traders to PLCs and private individuals.
We make it a priority to source you the funds at the best rates possible – that’s the primary benefit of coming to a mortgage broker. You’ll find us cheaper and more efficient than most other options. We provide commercial and other kinds of mortgage from £1000 to £1,000,000 but also deal above and below these figures.
When you want to secure a mortgage against your commercial property and use this to fund your business, we will work as your commercial mortgage broker and help you design and identify the mortgage that would suit your financial situation.
Taking out a commercial mortgage with us is usually far cheaper than what you would get in the general market. We act as your commercial mortgage broker to structure your loans in such a way that you get both short and long term benefits.
TONY
Dec
5
Filed Under Mortgage | Leave a Comment
Danielle Fletcher asked:
The buy to let mortgage market faces crisis as banks tighten their lending criteria and raise their interest rates. Many landlords have profited over the last decade from buying property and renting it out to tenants. House prices have increased and mortgage deals have been plentiful. However since the collapse of part of the American mortgage market due to sub – prime lending, interest rates across the global have been rising.
Even landlords with good credit histories and reasonable sized deposits could face problems finding a profitable buy to let mortgage in today’s economic climate. But for those who already have these types of mortgage the outlook seems even worse. Landlords who brought one of the plethoras of new build city centre flats within the last five years are suffering from having to find people willing to pay high rents to cover the high interest rates. Often these new built properties have been over valued and sold for considerably more than their market rate. This means that bigger mortgages were required to purchase the properties, many of which have actually lost value in recent years. Now with the banks increasing interest rates across the mortgage market, it is costing landlords even more to maintain these flats.
When the time comes for landlords to re-mortgage they may find it extremely difficult to find a comparable deal. Morgage lenders in the UK are withdrawing their buy-to –let products faster than their mainstream ones and have pushed up the rates for existing high risk customers to encourage them to move. Other lenders have stopped offering their products to new borrowers all together. But it’s not just the landlords that are suffering; some lenders are finding it difficult to stay afloat also. Paragon, which specialises in lending to landlords, has said that it is dangerous close to collapsing and will have to cut a third of its staff in order to keep afloat
A number of mortgage lenders are stepping out of buy- to- let market altogether, whilst others are refusing to offer loans to landlords wanting to purchase new-build properties. This means that landlords are more likely to have to stick with the mortgage rates that they are offered by their current lenders when their lower rate deals run out. Typically the standard variable rate is considerable higher than the cheap deal used to enticed landlords when they first took out the mortgage. This means that higher rents are then needed in order to cover the raising costs. However rents have not kept pace with the increased interest rates of the mortgage market and now landlords have to pay the shortfall themselves.
There is little that can be done in these times to ease the burden on buy-to-let landlords in this situation. Selling the properties may be an option but some new build flats are now worth less than when first purchased, so will result in negative equity if they were sold. Riding out the storm seems to be the second option but if landlords are to do this they should ensure they have completed a thorough search of the market and have the best product they can find to match their needs.
EDWARD
The buy to let mortgage market faces crisis as banks tighten their lending criteria and raise their interest rates. Many landlords have profited over the last decade from buying property and renting it out to tenants. House prices have increased and mortgage deals have been plentiful. However since the collapse of part of the American mortgage market due to sub – prime lending, interest rates across the global have been rising.
Even landlords with good credit histories and reasonable sized deposits could face problems finding a profitable buy to let mortgage in today’s economic climate. But for those who already have these types of mortgage the outlook seems even worse. Landlords who brought one of the plethoras of new build city centre flats within the last five years are suffering from having to find people willing to pay high rents to cover the high interest rates. Often these new built properties have been over valued and sold for considerably more than their market rate. This means that bigger mortgages were required to purchase the properties, many of which have actually lost value in recent years. Now with the banks increasing interest rates across the mortgage market, it is costing landlords even more to maintain these flats.
When the time comes for landlords to re-mortgage they may find it extremely difficult to find a comparable deal. Morgage lenders in the UK are withdrawing their buy-to –let products faster than their mainstream ones and have pushed up the rates for existing high risk customers to encourage them to move. Other lenders have stopped offering their products to new borrowers all together. But it’s not just the landlords that are suffering; some lenders are finding it difficult to stay afloat also. Paragon, which specialises in lending to landlords, has said that it is dangerous close to collapsing and will have to cut a third of its staff in order to keep afloat
A number of mortgage lenders are stepping out of buy- to- let market altogether, whilst others are refusing to offer loans to landlords wanting to purchase new-build properties. This means that landlords are more likely to have to stick with the mortgage rates that they are offered by their current lenders when their lower rate deals run out. Typically the standard variable rate is considerable higher than the cheap deal used to enticed landlords when they first took out the mortgage. This means that higher rents are then needed in order to cover the raising costs. However rents have not kept pace with the increased interest rates of the mortgage market and now landlords have to pay the shortfall themselves.
There is little that can be done in these times to ease the burden on buy-to-let landlords in this situation. Selling the properties may be an option but some new build flats are now worth less than when first purchased, so will result in negative equity if they were sold. Riding out the storm seems to be the second option but if landlords are to do this they should ensure they have completed a thorough search of the market and have the best product they can find to match their needs.
EDWARD
Oct
27
Filed Under Mortgage | Leave a Comment
Justin Lukasavige asked:
I was recently asked about a mortgage acceleration program and how they work. The idea behind the program is to pay off your home 2 or 3 years early, and save a bunch of money on interest. But what are they exactly, and do they really work?
Most mortgage acceleration programs use the same basic principle. If you stick to it, you will actually pay off a 30-year fixed-rate mortgage in about 27 years, and as a result, you will save a few thousand dollars in interest payments.
As to how they work, the idea is very simple. For a fee, the companies will usually break your mortgage payment in half and have you pay it every two weeks, rather than one full payment every month. This tends to work out good for those of us that get paid every two weeks or every week. While making half payments every two weeks, the program actually forces you to make one extra full payment every year, thereby paying off your home early.
The process is simple, but is there a better way? Yes, there is.
Most of these programs charge a fee to set it up with your bank, and then another fee each time you make a payment. While you will come out ahead in the end (most of the time), you really can do this on your own without paying someone else.
If you want to make an extra payment each year, there are a few different ways to do it. If your mortgage payment is $1,200 per month for instance, divide it by 12 to get $100. That is how much extra you need to pay each month to equal an extra payment.
If you have paid weekly or bi-weekly, you can also take a portion of your extra two paychecks (26 paychecks at bi-weekly instead of 24), and apply that to your mortgage payment that month. By doing it on your own, you will save yourself the fees and keep the ball in your court. Of course, the good thing about any program is that once you are on it, you receive a bill every two weeks, and you are held liable to pay it on-time. Can you trust that you will have the will-power to do it on your own without a bill telling you to?
As with anything financial, always make sure that you do things in the proper order. To view the seven Financial Freedom Steps, visit www.lukascoaching.com/resources.htm and download it for free.
ERNESTO
I was recently asked about a mortgage acceleration program and how they work. The idea behind the program is to pay off your home 2 or 3 years early, and save a bunch of money on interest. But what are they exactly, and do they really work?
Most mortgage acceleration programs use the same basic principle. If you stick to it, you will actually pay off a 30-year fixed-rate mortgage in about 27 years, and as a result, you will save a few thousand dollars in interest payments.
As to how they work, the idea is very simple. For a fee, the companies will usually break your mortgage payment in half and have you pay it every two weeks, rather than one full payment every month. This tends to work out good for those of us that get paid every two weeks or every week. While making half payments every two weeks, the program actually forces you to make one extra full payment every year, thereby paying off your home early.
The process is simple, but is there a better way? Yes, there is.
Most of these programs charge a fee to set it up with your bank, and then another fee each time you make a payment. While you will come out ahead in the end (most of the time), you really can do this on your own without paying someone else.
If you want to make an extra payment each year, there are a few different ways to do it. If your mortgage payment is $1,200 per month for instance, divide it by 12 to get $100. That is how much extra you need to pay each month to equal an extra payment.
If you have paid weekly or bi-weekly, you can also take a portion of your extra two paychecks (26 paychecks at bi-weekly instead of 24), and apply that to your mortgage payment that month. By doing it on your own, you will save yourself the fees and keep the ball in your court. Of course, the good thing about any program is that once you are on it, you receive a bill every two weeks, and you are held liable to pay it on-time. Can you trust that you will have the will-power to do it on your own without a bill telling you to?
As with anything financial, always make sure that you do things in the proper order. To view the seven Financial Freedom Steps, visit www.lukascoaching.com/resources.htm and download it for free.
ERNESTO