June 9, 2008 (4 weeks ago) – 9:08 pm
by Igor Buces
With the present economical downturn we are experiencing, we find ourselves to ensure that we make the best use possible of the money we make. In order to do so, many of us need to shift the way we think about our finances and how we can change our financial habits to make optimal use of every dollar we make.
For example, most people are happy with having most of their money in a checking or saving account where they get little return. In this case, the bank is the one taking advantage of the use of your money.
Another clear example is a home mortgage. In a regular 30 year mortgage, it’s not until the 20 years and 2 months mark that the principal portion of the payment equals the interest portion.
Since most American only lives in their homes between 5 and 7 years, we barely decrease the principal in our mortgage. This is so because the way the mortgage is structured heavily favors the banks since at the beginning most of the money goes to pay the interest portion.
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Mortgage Accelerator: Paying Off Your Mortgage in Half the Time
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June 8, 2008 (4 weeks ago) – 5:56 pm
by James Redder
For many home buyers, the only real decision they have to make is whether to have a 15 or 30 year fixed mortgage rate? Early completion of a mortgage is important for those of use that leave buying a home until later in life. In a situation as important as this time needs to be spent considering all the available options. It is always a good idea to confirm that the interest rate does not alter during the term of the mortgage.
It seems that some lenders are happy to offer deals that appear too good to be true and they usually are. The interest rate should remain the same for fixed rate mortgages until the loan is repaid. This is of great benefit for anyone that does not like surprises. Both my wife and I decided to research fixed rate mortgages when we started looking at homes for sale.
June 8, 2008 (4 weeks ago) – 4:47 pm
by Igor Buces
Reverse mortgages help senior citizens over the age of 62 take advantage of the equity they have accumulated in their home to make up for the loss in income. They work as a kind of loan advance on the present mortgage. However, the owner of the home doesn’t need to pay back any of the money for as long the owner stays in the home.
In the US, the owner of the home never needs to repay the mortgage and can not be thrown out of the house because lack of payments since there are not any. The owner can receive the money as a one time payment, monthly payments or as a credit line.
There are basically three different types of reverse mortgages that owners can apply for: a single purpose reverse home mortgage, a federally backed reverse mortgage or a privately issued reverse mortgage.
Single Purpose Reverse Mortgage
This type of reverse mortgages is offered by some Government organizations and non-profit agencies. It’s the cheapest of the reverse mortgage available. However, there are more hurdles to go over to qualify for this loan. The owner must be in the lower income bracket and the home loan must be used for a specific pre-approved purpose (home improvements, repairs or to pay real estate taxes.)
June 7, 2008 (4 weeks ago) – 6:46 pm
by Igor Buces
Mortgage accelerator programs have become popular financial tools in countries such as Canada, Australia and the UK. They are programs designed to help people pay off their homes in 10 to 15 years.
By paying off the mortgage early, you can save an average of $100,000. You can use the saved money for more productive ends: pay your children education, fund your pension plan, etc.
Mortgage accelerator programs are also becoming very popular in the U.S. because it gives you the chance of making the best possible use of your earned income. By using such a program, you can pay off your mortgage AND get a sense of direction and purpose on your financial arena.
In a mortgage accelerator program, you use a Mortgage Checking Account (MCA) which is basically a home line of credit. You use this line of credit by leveraging ALL of the unused “stagnant” money in your checking account every day of the month.
Whenever you deposit money into your MCA, that money is automatically applied on a daily basis toward the balance of your mortgage. By doing so, it reduces your mortgage balance and saves you money on the daily calculated interest that you are being charged by the bank.
June 6, 2008 (4 weeks ago) – 5:54 pm
by William Blake
Are you dreaming of a new home? Or trying to make your dreams of a new car come true? Are you finding dead end answers due to lack of money and a bad credit score?
Thankfully there are options for people with a bad credit score. The lending market is competitive and flourishing, and lenders want new customers, regardless of their bad credit. If you’re looking for mortgage financing and you have bad credit, here are some things to consider:
Average Deals-The best deals are reserved for those borrowers with very good credit ratings. Bad credit will not enable you to secure mortgage financing as easily as someone with very good credit ratings. However, there are fair loan options available.
Credit Score-There are loans which require zero down payment, offering the freedom from property collateral or security, depending on your credit ratings. Even with a low credit score of 600, a mortgage amount can be procured, if all legal documents and paper proofs are provided.
Two Type mortgages-You might choose to use a two type mortgage facility. With 75/25 or 85/15 offer rates, consumers save and may not be required to have insurance.
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