Five Tips To Slash Your Home Finance Costs
It's no wonder that the majority of homeowners dream of one day being able to pay off their home loan and live a life free from the shackles of interest rates, home finance and worries about meeting the monthly mortgage payments because the largest expense the majority of us take on in a lifetime is our mortgage and each month our home finance payments take a substantial chunk out of our take home pay.
Just think what you could do with all the extra money you would have spare if you didn't have to meet your mortgage each month! Interested? Well, here are five steps that you could take today to substantially slash your mortgage repayments and the overall cost of your home loan and even speed up your rate of repayment so that the day when you've paid off your home finance and are free to live the life you want comes that much sooner.
Step One - Demand Better Service!
As a loyal customer of your mortgage lender isn't it about time you were rewarded for your financial commitment, for making your regular payments and for being a good, long term customer?
Well, you can rest assured your mortgage lender will not reward you unless you ask for a better deal on your mortgage!
So get on the phone, call up your lender, ask to speak to someone in customer services or the customer retention department and explain that you're looking around for a better mortgage deal. Ask them for an evaluation of how much you have left to pay so that you can give it to any one of the hundreds of other mortgage lenders out there all willing to give you a better deal.
If you are indeed a valued customer you should receive favourable feedback to your demands and receive details of better offers currently available to you from your current lender.
Remember, if you don't ask you don't get and be adamant about what you want!
Step Two - Shop Around.
If step one doesn't get you the deal you deserve, shop around. There really are well in excess of a hundred lenders out there all seeking new customers who will offer you incentives to take up their mortgage product.
Use the internet to get an idea of rates being offered and special deals available to you. Do remember that lenders will do everything they can to make their deal seem like the most attractive one available and do everything within their power to attract new customers so you need to be shrewd.
Look for any hidden charges or tie in clauses and make sure you evaluate products offered on a like for like basis taking into account all the features of the mortgage offers available.
Step Three - Call in the Cavalry.
Well, not the cavalry exactly but expert assistance in the form of a licensed and regulated fee free independent mortgage broker. In the UK these guys are now regulated by the Financial Services Authority and in the US they should come under the scope of The Responsible Lending Act.
As independent brokers they have access to and understanding of every single mortgage product available and they should be best placed to assist you find a better deal than the one you have now where your repayments will be less, your interest rate will be lower and the amount you repay over the entire duration of your loan is reduced.
Make sure your broker is fee free and remunerated by any company you decide to take a mortgage out with. More importantly than this, make sure they are regulated and licensed correctly and if possible ask for professional references or testimonials.
Step Four - Cut Out All Extras
Mortgage lenders are notorious for selling overpriced add-ons such as life insurance, home insurance, contents insurance, income protection cover...all these insurances have their value of course - but you can bet your bottom dollar that you can every last one of them for a fraction of the price by going directly to an independent insurance house or even seeking the services of an independent financial adviser to find you the best deal available.
You could literally save yourself thousands each year in insurance premiums!
Step Five - Throw Some Money at It
So, you've cut your interest rate down to size, reduced your monthly repayments, maybe received a cash lump sum from a new lender and saved yourself thousands on insurance products - now turn all those savings back into your mortgage and repay early.
Make sure you have it negotiated into your new mortgage contract that you can make early repayment or lump sum annual top ups and get rid of the millstone round your neck, free yourself from your largest financial commitment as soon as possible and save thousands in interest payments and enjoy freedom of life once again!
Knowing About Mortgage
The best financial deals are found only after a thorough investigation into home loans and mortgages. Many people dream of owning their own home, but the high cost of homes generally requires a home mortgage to make it a reality. A mortgage is just like any other product; thus whether it is a home purchase, refinancing or a home equity loan, the price and terms of a mortgage can be negotiated. If you decide to apply for a home equity loan, you shouldn't necessarily automatically go with the same bank that holds your first mortgage. Instead, shop around to find the best rates and loan terms. Finding the right loan is always a challenge; it requires checking different lenders and comparing options to select the home equity loan that best meets your needs!
There are different types of mortgages today to suit different classes of people. To make life easier for the old and the retired, the government has even introduced reverse mortgages. This type of mortgage is a loan against the home that does not have to be paid back as long as the owner is alive and living in the home, and at the same time provides income to the owner.
Until recently, bad credit was something of a mystery. However, after the establishment of the FICO score, a uniform credit scoring agency, measuring people's credit behavior has become easier. Your future credit behavior can more easily be predicted based on this data. Most lenders use the FICO score as a starting point when deciding whether or not to extend credit to you. Moreover, if you don't pay your monthly mortgage payments, the mortgage company can foreclose leading you to lose your home and affecting your creditworthiness in the future.
In a rapidly changing economic scenario it is often difficult to keep up with the complexities of the financial world. We at mortgageproguide.com have made every effort to elucidate and enunciate in simple terms, matters related to money and mortgage. Mortgageproguide.com is a comprehensive site offering free and unbiased information on home loans, conventional mortgages, bad credit mortgages, home equity loans and reverse mortgage. So go through to moneyproguide.com in detail and make an informed decision on all matters concerning money and mortgage.
Selecting a Mortgage
Selecting a mortgage is not only time consuming but confusing, given the large variety of loan packages on offer in the market today. With different mortgage rates, varied costs and fees and multiple terms and conditions, you need to be well informed to make the correct decision about which mortgage is best suited for you.
Among other things, mortgage rates are extremely important while selecting a mortgage. Interest rates fluctuate depending on different factors that influence the economy like prime rate, Treasury bill rates, federal fund rate, federal discount rate and certificate of deposit rate etc. If the economy is doing well and the demand for mortgages is high, the interest rates will also see a climb. On the other hand, if the demand for mortgages is low in a poor economy the interest rates will drop as well.
However, there are several other factors that are as or perhaps more important than interest rates that determine which mortgage is right for you. These primarily include your financial situation such as income, savings and liquidity, your housing needs and duration of stay, the level of risk you are willing to take as well as the term of your loan. All these factors need to be considered equally and balanced with one's present position and future goals.
Before you decided on which mortgage is best for you, you will need a mortgage lender approval who based on your credit rating will offer you a loan that he feels is within your reasonable risk limits. The mortgage lender will take into consideration your ability to pay and then adjust your interest rates, points, terms etc accordingly. Only after this will you be able to select a mortgage that fits your requirements both, personally as well as financially. You can go in for mortgage refinancing at the end of the term if such a need arises.
BASIC FEATURES WHILE SELECTING:
1. Interest rate - fixed or variable:
In a fixed rate mortgage your interest rate will not change during the entire duration of your loan. This will enable you to know exactly what your periodic payout is and how much of the mortgage will be paid off at the end of the term.
Is Home Mortgage Good
Basically, a mortgage refers to a long-standing credit that a debtor obtains from a financial institution or from a property seller. If you are in a need of large amount of money to buy a house, a home mortgage is a good alternative for you.
In most cases, the house is the usual collateral for the mortgage, thus the term "home mortgage". In turn, the mortgage lender will be entitled to some legal rights upon the property as long as the mortgage is in full force or until the debtor pays back the loan.
A home mortgage serves as security for loans, thus giving the lender the power to acquire the property through foreclosure in the event that the borrower fails to pay the loan on time.
Normally, a home mortgage is comprised of a large loan. That's why in most cases a home mortgage can take 15 to 30 years before the borrower can pay back the due amount. In a home mortgage, the due amount to be paid by the borrower stipulates the principal amount of the mortgage and the interest owed relative to the outstanding balance. The real estate taxes and property insurance are also factored into the total mortgage balance.
Some home owners who find it difficult to make their mortgage payments may opt for refinancing of their mortgage. But for those who wish to pay off a home mortgage quickly, there are things to be considered...
1. Make sure you have a stable source of income. Organize your overall financial assets to ensure that paying off your mortgage will not over-extend your cash flow. There are many such considerations that should be carefully planned and organized before resorting to pay-off your home mortgage.
2. You should have a ready reserve of cash just in case of emergencies. This can be in the form of stocks and bonds, a bank savings account, or any other readily available form of cash.
3. Look at your overall financial status. Paying off your home mortgage can be a rewarding experience, but be sure to consider your overall financial status before making the decision to do so. The wrong decision can put you at great financial risk.
If you have considered above considerations already and you think you ready for it, then go for it. After all, nothing beats a worry-free, mortgage-free financial status.
Ameriquest Mortgage Company Tips Tricks And Offers For Refinancing Loans For Your Home
Ameriquest's loans are easy to qualify for, and they are willing to work with you to custom design a loan that fits your needs. An Ameriquest mortgage can mean that you can lower your current monthly payments, have cash back, and take a thirty day break from all of your current payments. A refinancing package from Ameriquest could be just what might help you out for several reasons.
Ameriquest offers loans that can help you consolidate high interest debt like credit cards. The balance on your credit cards can take you years to pay off. As a result, plodding along making minimum monthly payments can be costing you a fortune. Obtaining a loan from Ameriquest can pay off those high interest debts and save your hundreds of dollars in minimum payments every month. With credit card monthly minimum payments set to increase because of the passage of a new law, you could be in real financial trouble if you don't consolidate your debt today.
Though the company specializes in Ameriquest mortgages, it also offers loans to give you the extra cash you need for any purpose. Perhaps you have always dreamed of owning your own business. Maybe junior is getting ready to head off to college. Maybe you have several upcoming expenses you know you will not have the cash for. Whatever the purpose, Ameriquest can help with a cash-out refinancing plan.
More than just cash for any purpose, Ameriquest can offer you cash for home improvement projects. Every home has a few things the home owner would like to improve upon. Ameriquest is here to help homeowners by financing those projects that you are ready to tackle. Whether you need a new roof, new siding, new windows, or you really want to add a playroom for junior and a sun room for yourself, Ameriquest Mortgage Company can help you with all of your home improvement needs.
Not only does Ameriquest provide the best cash loans for you, they also have a host of customer service options that most mortgage companies simply cannot provide. When you apply for an Ameriquest mortgage, you get a personal home loan specialist to walk you through every step of the process. Ameriquest understands that a home loan can be a challenge. That's why they give you someone to hold your hand through each step. Your personal mortgage specialist is on call for you. That means that whenever you have a question about any step in the process, he or she will be available to answer it in a timely manner. Ameriquest also offers the speed that most lending institutions cannot. Ameriquest Mortgage Company close most of their loans in a matter of days. Other banks take months to finalize loans like this. Moreover, they will let you know if you qualify for a loan within twenty-four hours, which means you will no longer have to spend weeks wondering if this is even the lending institution you should be dealing with.
Refinance Rip Offs 6 Easy Ways To Avoid Them
Refinancing can be frustrating when, after all is said and done, you find you've been ripped off! Here is an easy guide to help you save your money and have peace of mind.
It's so easy today to lose money unnecessarily when you refinance. Hidden fees and penalties, terms you did not completely understand or a hard core loan officer who avoids issues you may have can create headaches you don't
need! Let us show you how to easily protect yourself and come out way ahead.
=Knowledge Going In... Go online and browse for major lender websites like Bank of America, World Savings, Indymac Bank, etc. Every one should have full descriptions of refinance programs currently available. Look through the fixed rate and adjustable rate mortgages and get a good understanding of
how they work. These big lenders spend a lot of money on easy explanations of their mortgage refinance programs. Take advantage of them.
=Making Contact...In talking with a lender, make sure the loan officer doesn't avoid any of your questions. If they get off track and evade issues, move on to the next lender! And ALWAYS get a good faith estimate and full details of
the loan program you are interested in before making any decisions to proceed with them. There will always be questions once you see these that may give you pause.
=Don't Let Them Pull Your Credit Report Yet... If you give every home mortgage refinance company a green light to pull your credit, this can affect your score negatively. Wait until you find the company you trust with the program you want. They need a good idea of how your credit is to quote you properly. You can call the major credit reporting agencies and request a copy of your credit report and then fax it to them, or, have them send you a
Borrower Authorization Form which gives them permission to pull your credit.
=Go Over The Fees... The fee schedule in a refinance can often include bogus
fees- fees made up to inflate the profit of the loan officer. Only pay for necessary fees. Go over it carefully with them. And remember- the origination fee is always negotiable!
=Careful of the Prepay Penalties... There is always the possibility of prepay penalties, especially with adjustable loan refinance programs. The term of the prepay can be reduced or eliminated by paying some points. But if it's a great loan that suits your purposes, then save your money. Most prepays are 2 to 3 years in length. Most people refinance every 4-5 years.
=The Final Approval... Once the lender has received your full refinance package and appraisal, upon approval of your loan, ask to see the fee schedule from the lender. Make sure again that there are NO junk fees.
=A Final Note...When looking at loan programs, there are all kinds with different advantages and disadvantages. TAKE YOUR TIME! Make sure you discuss with your loan officer ALL the possibilities. For instance, an interest only option might be available, or a longer term on the limited fixed rate program might be better for you. If you follow these 6 simple steps we've outlined, you will come out way ahead and save yourself time, aggravation and most of all...MONEY!
Arm Adjustable Rate Mortgages
Traditionally, homebuyers could look to two forms of mortgages - fixed rate and adjustable mortgages. While there are now many more options, this article takes a look at the adjustable rate mortgage.
What is an ARM Loan?
An adjustable rate mortgage ["ARM"] is a basic mortgage with one important exception. With an ARM, your interest rate will start low but typically move up throughout the link of the loan. The timing of the movements is dictated by the terms of the loan. The rate may be adjusted every month, but more typical periods are every six or twelve months. Most adjustable rate mortgages also have a cap on the amount the interest rate can be raised in a particular period.
A homebuyer has to be very careful when selecting an adjustable rate mortgage. Buying a home necessarily involves budgeting out how much of a monthly mortgage rate you can afford to pay. With an ARM, you have to keep in mind that your monthly payment amount will go up if the interest rate does the same. While you may be able to afford the loan now, what happens if the rate jumps two percent over the next two years?
In the current real estate market, potential rate increases are a troubling issue. In areas where the real estate market is dramatically appreciating, homebuyers are using ARM loans to "get into" homes. Put another way, they are using ARM loans to get a mortgage payment they can afford without giving real consideration to rate increases in the future. Mortgage interest rates have been at historic lows for the last few years. What is going to happen to all of these people when rates rise? It could make the savings and loans crisis of the late 80s look like small potatoes.
If you are considering an adjustable rate mortgage, make sure you do the research. Find out how often the rates can increase and by how much. Try to determine whether you can afford payments if the rates go up significantly over the next few years. With Greenspan retiring, now is the time to be very careful when taking on mortgage debt.
Mortgage Your Home Restoration
A commuter rail boom in the New York and New Jersey has enabled many professionals in the area to live further from the big city. One of the places they're moving is Morris County, New Jersey, a group of historic small towns 20 miles to the west. Settled more than 300 years ago, the area offers a well-established, attractive residential base, and solid property investment potential. Morris County includes more than 30 municipalities, and a wide variety of charming unincorporated areas. Homes here are often beautifully restored Victorian and Colonial-era buildings dating back to the early 20th century, which add to an already high quality of life in this attractive area.
Big City professionals also know Morris County for its wide variety of Fortune 500 headquarters, offices, and major facilities. Companies with operations here include AT&T, Honeywell, Bayer and Wyeth, BASF, Novartis, Exxon, and Colgate-Palmolive - good news for anyone who wants to avoid the daily commute to their corporate office job. Many professionals who move to Morris County also find jobs here, and are able to confine their relationship with New York and New Jersey to weekend visits.
Morris County's uncrowded layout is another reason for its popularity. The county has less than 500,000 residents spread across more than 1,247 km and dozens of communities, which compares nicely to the urban sprawl of millions per square mile just to the east. Morris County's low density has put it in high demand with wealthy buyers - it's the sixth wealthiest county in the Nation by median household income, and tenth by per capita income.
Affluence with a taste for old world charm is part of the reason many of Morris County's older homes here have been carefully preserved. A wide variety of old mansions have also been converted into museums, art studios, and schools. When visitors come to Morris County, they make a point of checking out heritage buildings like Acorn Hall in Morristown, which dates back to 1853.
The Mortgage Calculator And Your Terms
A mortgage calculator can help you to do many things including understand the terms of your loan. The term of the loan is the length of time that you will hold that loan for. This is often something that you can change to suit your needs. But, in order to know just what the solution is that is right for you, you will want to insure that you actually see what the various options will do. A home loan is a very serious loan and it is one that can make or break you if you do not do your homework.
But, you can use a mortgage calculator to help you to do this. Most home loans will be able to be gotten in a variety of terms. They can range from 5, 7, 10, 15, 30 or even a 40 year loan. Now, there are many things that will help you to decide which the right choice is for your loan. Remember, the longer you hold the loan, the more that you will pay for it. But, also, the longer the loan is the lower your monthly payment is going to be as well. This often helps those that would like to get more of a house to extend it to a longer period of time as well as allows individuals that are looking for the most inexpensive loan option to pay it down faster.
Now, to know how much a longer or a shorter term will cost you, you can use a mortgage calculator. This tool will allow you to put in the values of the loan that you are considering. You will put in the terms of the loan, the interest rate that it is being offered at as well as any down payment that you may be offering. Then, it will produce a good amount of information for you. It will provide you with information on how much the monthly payment will be, so that you can see if it is something you can afford. It will also tell you the total cost of the loan with those terms.
Now, take the mortgage calculator back and refigure your information. You are looking to add in the terms of a different length. For example, if you entered information the first time for a ten year loan, try a 15 instead. Now, compare the monthly payment amounts as well as the total cost of the loan in the long run. You can keep doing this until you determine which the right loan terms for your home purchase are.
When you take the time to compare these various terms, you'll see the amount of money that you will be really charged to purchase the home that you want. There are many other things that this tool can tell you as well. It can help you to figure out the total cost of the loan at various interest rate levels and with different types of loans as well. The mortgage calculator is a tool that every home buyer needs to have and use.
Cash Out Refinance
If you have owned your home for a period of time long enough to obtain some equity through your monthly mortgage payments and appreciation, you may be considering borrowing off the equity you have established in your home.
This can be known as cash out refinancing, where you basically refinance your home and get some cash back in the way of a lump sum at the closing table.
Borrowing off of the equity in your home is done by many people and used for many different things.
Such as, home improvement projects, new cars, college expenses, family vacations, etc.
Of course, just like everything else in life, the process isn't one of the easiest of things to do in the world. But if you take your time, do your homework, and find the right lender and loan officer, the task in front of you will be a lot less painful.
The mortgage industry is a very competitive one, so be sure to shop around and look for the deal that is best for you.
If you are not interested in doing the shopping around yourself, consider finding a mortgage broker to do the shopping for you.
A mortgage broker is a person who works as a liaison between the customer and the lender. It is the job of the mortgage broker to shop lenders for the consumer to find the mortgage program that best fits their needs and budget.
Allow for a few brokers to assess your situation, than base your decision on the one that best fits your needs and budget.
Keep in mind, most cash out refinances are tax deductible, so be sure to run it by your accountant at tax time.
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