| ||
| ||
|
Mortgage & Refinancing Information | |
|
|
Mortgage Basics for First Time Home Buyers
Anyone planning to take out a mortgage for the first time will most likely find the job a little daunting, not least because the financial jargon can often be very difficult to make sense of. As with any major financial decision, it is essential to fully understand every aspect of a mortgage plan before making a commitment. It's also vital to simply do the math, to calculate exactly how much each type of mortgage will cost for the overall life of the loan, how long it will take to repay, and what the monthly repayments will be. Buyers would be wise to make the financial calculations before choosing a home, to get a clear picture of exactly how much home they can really afford to buy. More information is available at http://www.money-smash.com One of the most important decisions to make is choosing the term of the mortgage. Most fixed term mortgage plans work on either a 15 or a 30 year period. Generally speaking, a 15 year plan means the monthly repayments will be higher, but less interest is paid over the long term, so often the mortgage will work out cheaper over the life of the loan. A 30 year plan will normally mean more interest in the long term, but the monthly repayments will be lower, which may mean the borrower can afford to buy a more expensive home. Another important choice to make is between a fixed and an adjustable rate mortgage. The terminology is as simple as it sounds, although making the choice between the two types of plan may be a lot more complex. Fixed rate mortgage means the interest rate is set at the time the loan is made, and remains the same throughout the life of the loan. With an adjustable rate mortgage, the interest rate is set for the first few years, then after that, it is determined by various external economic factors which are outside the control of the lender and the borrower. Usually there will be some kind of cap to protect borrowers from excessive interest rate rises. A fixed rate plan is the less risky option, but an adjustable rate plan generally offers lower rates initially, and should interest rates fall in future, borrowers can take advantage the lower rates immediately, without having to refinance. David Cannell is a freelance writer and university educator. He is also the owner of http://www.money-smash.com
MORE RESOURCES:
Mortgage-Refinance - Google News |
|
|
|
RELATED ARTICLES
Buying a Home With Bad Credit - Get Approved With a Recent Bankruptcy or Foreclosure A few years ago, if you had a bankruptcy or a foreclosure on your credit report, you could forget about trying to get a mortgage loan. If you were lucky enough to find someone who would finance you, your interest rate would be through the roof and plan on putting 10-20% down. Home Equity Loans - Research Your Lender Carefully Real estate prices are rising across the country, and Americans are tapping into their home equity like never before. Americans took out $431 billion in home equity loans in 2004, and that amount may increase in 2005. Applying for a Home Loan Applying for a home loan may not be the most exciting way to spend your time, but if you are like many potential homeowners, it is probably a necessary evil. If you have some knowledge of the process ahead of time, however, it will go much more smoothly. A Personal Mortgage Experience I don't know what the mortgage situation is around the world but here in England the mortgage industry is a constant point of debate. It used to be that everyone aspired to having a mortgage on a nice home - you know the kind of house with enough rooms to cater for the average family with 2. The Worst Way to Shop for a Home Mortgage You've found a house that is perfect for you. It is so appealing that you're willing to endure the hassle of obtaining a mortgage. No Deposit Home Loans A few years ago, many of us would have had a light chuckle to ourselves if someone mentioned that you could borrow money to buy a house with only the promise of solid future earnings. But today this is a regular occurrence. Flexible Mortgages - Offering Relief from the Fixed Mortgage A pension mortgage may seem lucrative at the first sight. However, they seldom are, if the customers who took pension mortgage are to be believed. Home Mortgages: Does a No-closing-cost Loan Make Sense for You? I have heard a number of radio ads and have seen many newspaper ads offering "no closing cost" home mortgages. These ads will tell you that you can get a new mortgage or refinance your existing mortgage at absolutely with absolutely no closing costs. Save Yourself from Homebuying Disasters Whether you are a first time home buyer or a happy home owner who wants to refinance an existing home loan, there are some cardinal "dos" and "don'ts" to follow. For many, home ownership is the biggest investment in their lives and that could be the reason why some people act irrationally, as if they purposely want to sabotage the deal. Private Mortgage Insurance (PMI) If your down payment on a home is less than 20 percent of the appraised value or sale price, you must obtain private mortgage insurance, known as PMI, with your lender. This will enable you to obtain a mortgage with a lower down payment because your lender is now protected against any default on the loan. What is a Mortgage? A mortgage is a loan, usually from a bank, finance company or building society to help you buy your home.A mortgage is a loan, from a bank or building society that is secured against your house or flat. Home Equity Loans A home equity loan allows you to cash-in on the equity you have built-up in your home. The funds you receive can be used for debt consolidation, home improvement, college education, investments or any purpose. Should You Choose to Refinance? Refinancing has become a valid option for many individuals with high interest rates on their mortgage. Refinancing is essentially a replacement loan, with a different lender and (hopefully) a lower interest rate. Biweekly Mortgage The biweekly mortgage has been around for years but with the recent media attention to the real estate industry in general and the mortgage industry in particular, the biweekly has been getting thousands of home owners to use this simple, yet powerful, way to speed up the principal payment process. Why is this so popular? How does it work? How can I do this?Here is why this is so popular to hundreds of thousands homeowners. A Simple Way to Save Thousands on Your Mortgage Charges How many times do you check you restaurant bill? If not often, I would advise you to do it more, especially when dining on your overseas vacations. Still, much more Americans check their restaurants bill, than the number of homebuyers, who check the charges for their mortgages. Mortgage Terms Explained When you are hunting for a mortgage, you will find that there are many different types of mortgages available. I will list some of the more common ones and their uses. Remortgages Guide Outlined below is a useful remortgages guide. Remortgaging has become increasingly popular due to the relatively simple and flexible process. Finding the Best Home Improvement Loan Rate If you're looking for a good home improvement loan rate, you might have to take your time and shop around a little bit.The home improvement loan rate that you get can depend on several factors? your credit history, the amount of the loan you're requesting, national interest rates, and even the equity of your house or real estate. The Top 5 Reasons to Buy a Home 1. Save on your income tax. Avoiding Foreclosure Scams If your mortgage company is threatening foreclosure, there are things you can do to avoid it (see my article titled "How to Avoid Foreclosure"). However, you should be aware of scams.
|
| home | site map |
| © 2006 |