http://www.artwoo.com Returned search results for mortgage payments Copyright 2008 Thu, 21 Aug 2008 21:33:08 +0000 http://www.artwoo.com/rss/mortgage+payments http://www.artwoo.com/article/the-benefits-of-an-interest-only-mortgage http://www.artwoo.com/article/the-benefits-of-an-interest-only-mortgage#comments Fri, 29 Dec 2006 22:27:06 +0000 interest only mortgagemortgage paymentsmortgage borrowerssecond mortgagebeneficialperiod of timeinterest rate http://www.artwoo.com/article/the-benefits-of-an-interest-only-mortgage interest only mortgage as an option for lower monthly payments on your mortgage payments.

With an interest only mortgage, your scheduled monthly payments are interest only. This means that for a certain period of time you only pay the interest charges on your loan.

This can be of great benefit to you.

Pay close attention to the word "scheduled". In indicates that the lender only requires the borrower to make a payment in the amount of the interest. The borrower is still able to payments higher than the interest if desired.

The result of an interest only mortgage is that during the interest-period of the mortgage, payments are not credited towards the principal of the loan. Therefore, the balance of the loan does not change during this period of time.

If you're not paying down your loan balance, why would you want an interest only mortgage? An interest only mortgage is beneficial because the required monthly payment is lower than that of a non-interest only mortgage.

Borrowers with fluctuating incomes benefit from making interest only payments. Some borrowers are able to qualify for a larger loan because the interest only option decreases the monthly payment.

Borrowers who use a second mortgage to finance their down payment often use the interest only mortgage as their primary mortgage since second mortgages usually have a higher interest rate. It makes sense to repay off the mortgage with the higher interest rate as quickly as possible.

Using the interest only option for the primary mortgage frees up the capital to do this.

Borrowers should beware because this low monthly payment does not last indefinitely.

After the interest only period has expired, your monthly payment to your mortgage will increase significantly, especially if you have not made any payments to the principal of the loan during the interest only period.

Let's say you have a $360,000 mortgage with a 30-year term. Without the interest only option your monthly principal payment would be $1,000. However, if you have an interest only mortgage for 5 years, your monthly principal payment will be $1,200 when the interest only option expires.

A 10-year interest only option will put the principal payments at $1,500 once the interest only period expires. The longer you have an interest only mortgage, the higher your principal payments will be when the interest only option expires.

The best way to manage an interest only mortgage is by making principal payments whenever possible. By doing this, you are decreasing the risk of having your monthly payments shoot up to an unaffordable level.

Even though you have an interest only mortgage, you may still see your interest payments increase during the interest only period. Why does this happen? Well, lenders only extend the option of an interest only mortgage with an adjustable rate mortgage (ARM) -- one that has a fluctuating interest rate. If the initial fixed rate period of the ARM expires before the interest only period expires, you are subject to an interest rate increase which leads to an increase in your monthly payment. Similarly, your interest rate could decrease resulting in a decrease in your monthly payment. Download a free ebook that shows you how to get the best mortgage: http://www.freelandproperty.com/ ]]> http://www.artwoo.com/article/is-an-interest-only-mortgage-a-good-idea http://www.artwoo.com/article/is-an-interest-only-mortgage-a-good-idea#comments Sat, 29 Jul 2006 12:27:05 +0000 mortgage paymentsinterest only mortgagerepayment mortgagemortgage termmortgage capitalinvestment fundextra money http://www.artwoo.com/article/is-an-interest-only-mortgage-a-good-idea interest only mortgage. If you are unsure about what an interest only mortgage is and how it can help you, then this article can provide you with some useful tips on getting an interest only mortgage.

What is an interest only mortgage?

An interest only mortgage is a mortgage where you only pay back the interest on the loan, and none of the capital debt is repaid directly. Once you get to the end of the mortgage term, you will pay back the capital payment in full.

How do you pay back the capital?

Although you don't pay the capital back directly through your monthly mortgage payments, you indirectly pay for the capital. You pay for the capital through an investment fund or other lump sum. So, instead of repaying your mortgage capital each month through mortgage payments, you may monthly payments into an investment fund. Apart from investment funds, the other main ways to pay off the capital are:

Savings Switching to a repayment mortgage Another lump sum such as inheritance

What is the advantage of this?

Although you are still making monthly payments into an investment fund, these payments are likely to be a lot lower than the monthly mortgage payments you would pay on a normal repayment mortgage. Your interest only payments will be low each month and so if you cannot afford to pay a lot each month at the moment, an interest only mortgage might be a good idea. Also, the idea is that the money you put into the investment fund will mature and leave you with enough money to pay off the capital at the end of the mortgage term as well as leaving you with some extra money.

Are there risks?

Of course, there are a number of potential risks of getting an interest only mortgage. The first problem is that if you are hoping to pay off the capital by switching to a repayment mortgage later on, you will be paying back a lot more money than if you started on a repayment mortgage. Although you may find it hard right now, getting a repayment mortgage to start with might be a better option. However, the main risk involved with interest only mortgages is that the investment fund you set up will not be enough to pay back the capital at the end of the mortgage term. If you cannot pay back the capital then you could end up losing your home at a time in your life that it will hit you hardest, such as at retirement age.

If you are going to take out an interest only mortgage, make sure that the funding method you use is safe, and that you have contingency plans if the fund is insufficient to pay back the capital. If you do this, then getting an interest only mortgage can be a great way of keeping your payments low whilst you improve your income. Peter Kenny is a writer for creditcards-gb For additional articles and an extensive resource for everything about credit cards, please visit us at http://www.creditcards-gb.co.uk and http://www.thriftyscot.co.uk/Mortgages/ ]]> http://www.artwoo.com/article/mortgage-tips-pay-your-mortgage-weekly http://www.artwoo.com/article/mortgage-tips-pay-your-mortgage-weekly#comments Wed, 27 Dec 2006 10:27:08 +0000 mortgage paymentsmortgage paymentmortgage ratesaving moneyamortizedinterest ratemath http://www.artwoo.com/article/mortgage-tips-pay-your-mortgage-weekly math does not lie -- you should pay your mortgage WEEKLY. I have just completed all the math that you do not want to go through to find the truth.

I wanted to know the best way to pay a mortgage to save as much money as possible. Here are the conclusions that you want to take away from my studies.

Was it better to pay you mortgage weekly, bi-weekly or monthly?

-> Paying you mortgage weekly would save you 1294.12$ on a 200 000$ mortgage amortized over 25 years (rate of 5.4%). Now that's not a ton of money but it does not cost you anything. You do not have to increase your payments at all to save. So take the saving and run with it.

-> The higher the interest rate the more you will save. If we double the interest rate, the savings are 7.08 times larger. That means that there is an exponential factor that increases, power of this strategy.

-> Paying your mortgage weekly generates 43% more savings than paying your mortgage bi-weekly.

How to increase your savings by weekly accelerated payments?

Recently many people have started to use a strategy called weekly accelerated mortgage payments. That means that they not only save money by paying weekly but they also make their payments a little bigger and save a lot of money.

To do this they simply take their monthly mortgage payment and divide it by 4. Since there is a little more than 4 weeks in a month (actually there are 4.33) they end up making 4 weekly payments more every year.

-> On a 200 000$ mortgage (rate 5.4% amortized over 25 years) the extra payment would only be 23.25$ per week.

-> You would pay out the mortgage 3.7 years earlier

-> The total savings would be 23 173.78$. Not bad! (for details visit the resource box)

Paying your mortgage weekly and accelerated is worth it! The savings on the capital you use to increase your payments is equal to having a return on investment of 7.52%. Not bad for a guaranteed return!

Saving money does not have to be complicated: pay your mortgage weekly. If you can accelerate your payments a little, you'll save more. If paying your mortgage weekly is not possible then pay it bi-weekly. It's not as good as paying weekly but it's better than paying monthly! Gregory van Duyse is a writer for http://www.informezvous.com - hypothèques on http://www.informezvous.com/calculateur_hypothecaire/index.html mortgage calculators - calcul hypothèque. ]]> http://www.artwoo.com/article/the-new-50-year-mortgage http://www.artwoo.com/article/the-new-50-year-mortgage#comments Mon, 31 Jul 2006 22:27:12 +0000 year mortgagemortgage paymentscentury mortgageinterest only loansideapurchase homesfinance world http://www.artwoo.com/article/the-new-50-year-mortgage year mortgage. While 30 year mortgages had dominated the market for decades, the idea of being able to spread out your mortgage payments over forty years was just almost too much to comprehend. Now, there is the new 50 year mortgage and if the 40 year mortgage took the finance world by storm the 50 year mortgage is leaving many people speechless.

But, is a half century mortgage really a good idea? Well, there are certain some advantages to a 50 year mortgage. The most obvious advantage is that it allows a homeowner to spread out the cost of a home purchase and lower monthly mortgage payments. In housing markets where prices have skyrocketed this can be a major pro because it may make it available for individuals to purchase homes who might not have been able to do so otherwise.

Of course, there are also major disadvantages to consider as well. When considering a 50 year mortgage it is extremely important to consider your age at the time of the purchase. For example, let's say you're 30 at the time your purchase the home. With a 50 year mortgage, your home would not be paid off until you're 80. If you think you'll still be able to meet those monthly mortgage payments long after the age by which most people have retired, this might not be a bad option. On the other hand, if you're looking to be debt free by the time you retire, it's best to consider another option.

It is also important to remember that the longer you draw out the payments on your home purchase, the more you're paying in interest. This is why many critics of the 50 year mortgage are referring to them as interest-only loans. When you stop and actually look at the numbers, you'll see that with this type of mortgage you're paying a lot more in interest for your home that you would with any other type of home loan, even a 40 year mortgage. That's money you might be able to put toward something else, especially if you're looking ahead toward retirement. On a $300,000 home purchase at the going interest rate the monthly payments would be in the neighborhood of $1,800 per month with a 30 year mortgage. Conversely, with a 50 year mortgage at the same interest rate you could drive down the price of the monthly mortgage payment by about $200 per month. Since, you'll be paying for the home 20 years longer with the 50 year mortgage than you would with the 30 year mortgage; however, you'll actually end up paying more than $300,000 more for the home over the course of the 50 year mortgage than with the 30 year mortgage. If you went with the 30 year mortgage and the monthly payment that is $200 a month more, sure you'll spend $72,000 over the course of the next 30 years but then your home will be paid for in full. With the 50 year mortgage you'll still be responsible for that $1,600 a month house payment for the next 20 years. Joe Kenny writes for the UK personal finance sites http://www.ukpersonalloanstore.co.uk and also http://www.cardguide.co.uk ]]> http://www.artwoo.com/article/the-facts-about-home-mortgage-insurance-online http://www.artwoo.com/article/the-facts-about-home-mortgage-insurance-online#comments Sun, 09 Mar 2008 04:30:01 +0000 home mortgage insurancemortgage advisorinsurance paymentsmortgage paymentmortgage rateshome loanssaving money http://www.artwoo.com/article/the-facts-about-home-mortgage-insurance-online Home mortgage insurance is coverage that protects your lender should you default, or fail to make payments, on your home loan. This insurance also helps lower the down payment for your new home. Traditionally, a down payment should be about 20% of the home price. Home buyers who can't afford this kind of down payment sometimes opt to use home mortgage insurance. With this insurance, you can put down as little as 3-5%.

However, there are a few facts you should consider about home mortgage insurance before making a decision.

=95 Home mortgage insurance can be costly. It adds to your mortgage payment, after all. Sure, home mortgage insurance helps you get a home more quickly than you'd be able to if you weren't able to make the traditional down payment of 20%, but if you are able to put down enough money avoiding the insurance makes more sense. You may also want to consider saving money until you can afford a good down payment.

=95 Home mortgage insurance is sometimes tax-deductible. That may not appeal to you now, since you'll still be paying extra money throughout the year, but your increased tax return (or decreased tax payment) could change your mind. If you absolutely need home mortgage insurance, talk with the particular company you're considering to find out if your payments can be deducted. You may want to choose one that does offer tax-deductible home mortgage insurance.

=95 Check with a mortgage advisor about ways to avoid home mortgage insurance. You may be eligible for special kinds of home loans that actually pay the home mortgage insurance payments for you. Of course, this will make your mortgage rates slightly higher, but it may balance out if the increased rates aren't any higher than the home mortgage insurance payments.

In the end, you should always avoid additional costs or take steps to make them as low and rewarding as possible. Sites that I recommend http://www.saveitmonthly.com Cheap Mortgage Insurance Quotes http://www.myquoteguide.com/Home-Quote.shtml Quick Homeowner's Quotes ]]> http://www.artwoo.com/article/getting-100-mortgage-refinancing-with-bad-or-poor-credit http://www.artwoo.com/article/getting-100-mortgage-refinancing-with-bad-or-poor-credit#comments Sun, 17 Sep 2006 08:27:09 +0000 mortgage refinancingmortgage refinancedebt consolidationcredit scorebad creditpoor creditlenders http://www.artwoo.com/article/getting-100-mortgage-refinancing-with-bad-or-poor-credit bad credit they will never be able to refinance their homes. This view is far from the truth. It is possible to receive mortgage refinancing with bad credit. This is because there are many lenders out there who off special programs designed to help you get 100% mortgage refinancing with poor credit. You just have to know where to look, and you should probably be careful as you decide where to have your 100% mortgage refinance taken care of.

100% mortgage refinancing

100% mortgage refinancing is when you finance the entire value of your home for the refinance. Many people use this as a way to reestablish themselves after ending up with poor or bad credit. 100% mortgage refinancing with bad credit can lead an increased ability to make more payments, meaning that your credit score improves. 100% mortgage refinancing also implies in many companies that you will not have to pay up front closing costs. Many lenders roll the origination fees into your mortgage refinancing. This can be very helpful for those seeking mortgage refinancing with poor credit, as it precludes them from having to pay out of pocket expenses.

Re-establishing your credit

If you can pay off your debt using 100% mortgage financing, it can help you re-establish your credit. You do not need to keep a low credit score forever. And one of the advantages debt consolidation is that it makes it easier for you to begin improving your credit. Your monthly payments are rolled into one loan payment, covered by your home refi, so it is easier to remember to pay them all. Additionally, the lower payment is usually smaller than all of the former payments put together. And the interest is much lower than the combined interest you were paying previously. On top of that, you are likely to be able to take a tax deduction for the interest on your mortgage refinance. With payments that are easier to make, you miss fewer payments and your credit score goes up.

Finding 100% mortgage refinancing with poor credit

Most lenders have some sort of loan program for bad credit. You can call around to the lenders in your phone book to find those that offer mortgage refinancing with bad credit. Plus, you can look online for a wealth of resources regarding finding loans that have relatively good rates for someone looking to refinance their mortgage with poor credit. Visit http://www.refinancesmarts.com for more information on how to obtain a 100% Refinance Mortgage Loan with Poor Credit. ]]> http://www.artwoo.com/article/adjustable-rate-mortgage-payment-things-you http://www.artwoo.com/article/adjustable-rate-mortgage-payment-things-you#comments Fri, 02 Jun 2006 12:32:15 +0000 adjustable rate mortgagemortgage paymentmortgage paymentsfixed rate mortgagesinitial interest ratesinterest rate increasenewspaper ads http://www.artwoo.com/article/adjustable-rate-mortgage-payment-things-you newspaper ads showing astonishingly low rates are for real. These ads are what we call adjustable-rate mortgage payments.

Loans with an adjustable-rate mortgage payment type usually have low rates only for a short time. Rates of adjustable-rate mortgage payment are adjusted on a regular basis, usually after the first year is over. This means that the interest rate and the amount of the monthly adjustable-rate mortgage payment may vary, going either up or down.

With adjustable-rate mortgage payments, there is little chance of you knowing what your future monthly payment would be. Some types of adjustable-rate mortgage payments have limits to the interest-rate increase. When an adjustable-rate mortgage reaches a certain percentage, the interest rate will no longer increase for the duration of that period. But at the end of that period, the adjustable-rate mortgage payment will vary once more.

Determining whether or not an adjustable-rate mortgage payment is the right type of loan for you usually depends on your financial situation. Also, it depends on the type of adjustable-rate mortgage payment you plan to make. Adjustable-rate mortgage payments have characteristics that might ultimately prove risky in the long run. Because the dynamics of interest rates in the market are never certain, the amount of your adjustable-rate mortgage payments are uncertain as well.

Adjustable-rate mortgage payments generally have lower initial interest rates compared to fixed-rate mortgages. This makes an adjustable-rate mortgage payment more affordable and easier on the pocket. Adjustable-rate mortgage payments may also help you qualify for a larger loan. This is due to the fact that lenders sometimes decide to extend a loan provided that your current income is steady and your adjustable-rate mortgage payments for the first year are up-to-date.

Another advantage of having an adjustable-rate mortgage payment type of loan is that it could turn out to be less expensive in the long run. With an adjustable-rate mortgage payment, the chance of interest rates going higher is equal to its chance of going lower. Now here in also lies the risk of having an adjustable mortgage payment.

When it comes to having an adjustable mortgage payment, there are no guarantees. It is either the interest rates will lower down or it will rise up. Lower interest rates mean lower monthly adjustable-rate mortgage payments. Higher interest rates mean higher monthly adjustable-rate mortgage payments for you. There is no middle ground. Adjustable-rate mortgage payments are basically a trade-off -- you exchange more risk for lower rate with an adjustable-rate mortgage payment.

But despite this, there are some ways to circumvent the risks and increase your chances of landing a good investment in an adjustable-rate mortgage payment. Below are some questions you need to consider:

• Is there a possibility that my income will rise up enough to cover higher adjustable-rate mortgage payments should interest rates go up?

• Is there a chance that I might take on other sizable debts like a loan for a car or school tuition in the near future?

• Will my adjustable-rate mortgage payments increase even though interest rates remain the same?

• How long do I plan to own this home? (If you plan on selling soon, an increase in interest rates should not be a problem for your adjustable-rate mortgage payment.) If you're set on greatly increasing your odds at discovering how to exploit the profit potential of real estate.... Then this may be the most important website you'll ever see! Go to http://www.fsbodomination.com and you may reproduce this article as long as there is an active hyperlink accompanied with it. ]]> http://www.artwoo.com/article/using-a-mortgage-loan-refinance-for-debt-consolidation http://www.artwoo.com/article/using-a-mortgage-loan-refinance-for-debt-consolidation#comments Thu, 21 Sep 2006 12:27:05 +0000 mortgage loanmortgage paymentsdebt consolidation loanmoney leftamount of moneyrefinancesubstantial gap http://www.artwoo.com/article/using-a-mortgage-loan-refinance-for-debt-consolidation amount of money you pay in interest, is to get a debt consolidation loan. And if you have a mortgage, you can get your debt consolidation by way of a mortgage loan refinance.

How It Works

If you have been in your home for a while, you have probably built up some equity, or "ownership," in your home. This means that you have made enough mortgage payments, and maybe your home has increased in value, to a point where there is a substantial gap between how much you still owe on your mortgage loan and how much your home is worth. This is known as equity, and you can use it for debt consolidation. Here's what happens:

1. You get a mortgage loan refinance for the amount your home is worth

2. The new home loan pays off the old mortgage, and there is money left over (your equity)

3. The left over money from the mortgage loan refinance is used to pay off your other debts.

Benefits of debt consolidation with a mortgage loan refinance

There are many advantages to using a home loan refinance to consolidate your debts. Most of these have to do with the fact that your loan payments are dramatically simplified, saving you time and money. Here are some of the benefits:

Fewer payments. It can get hard to keep track of all of your loan payments each month. With debt consolidation, you only have one payment.

Lower interest. Credit cards carry high interest rates. A home loan refinance is almost always lower. That means more of your payment goes to principal, and you spend less money on interest fees.

Lower payments. Your mortgage loan refinance payments are almost always lower than the combined total of your disparate loans. This puts more money in your pocket each month, leaving you with breathing space.

Tax-deductible interest. When you have money on credit cards, the interest is not tax-deductible. However, in many cases the interest you pay on a mortgage refinance loan can be deducted from your taxes. This is an added benefit to debt consolidation with a mortgage loan refinance. Visit http://www.refinancesmarts.com for more information on http://www.refinancesmarts.com/mortgage_refinance-3_reasons_to_refinance.shtml ]]> http://www.artwoo.com/article/is-an-interest-only-mortgage-what-you-need http://www.artwoo.com/article/is-an-interest-only-mortgage-what-you-need#comments Tue, 24 Apr 2007 09:25:04 +0000 fixed rate mortgageadjustable rate mortgageinterest only mortgagemortgage interestinterest only mortgagessalaryinitial payments http://www.artwoo.com/article/is-an-interest-only-mortgage-what-you-need Interest only mortgages are becoming more in demand - now that people are learning about them. Recent changes have made them more popular and it could be just the thing that you need. Here are a few tips that will help you determine if you should get an interest only mortgage.

Interest only mortgages give you the opportunity to buy a larger house than you might be able to obtain otherwise. They have an initial period of from 5 to 10 years in which the interest only is being paid. During this time period, your payments are lower because you are paying interest only. In a regular mortgage, each month normally includes some of the principal involved in the payment, and this slowly reduces both the principal and the interest.

An interest only mortgage is often attached to an adjustable rate mortgage, but can just as easily come as a fixed rate mortgage. If you get an interest only mortgage on an adjustable rate mortgage, it will enable an even greater reduction in the payment each month.

The actual idea of an interest only mortgage is a little deceiving. For one thing, there is no such thing as an interest only mortgage - you must pay the principal at some time. This mortgage is generally divided in two sections =96 the first part being interest only with smaller payments, and then it changes to a fixed rate mortgage with payments that will enable a full amortization.

The individual that is best suited to this type of mortgage is someone who is on a short road to success - or at least believes they are. Not having all the money they need up front, they need to get a larger house, but are quite sure that their financial situation will rapidly be improving - soon. The lower initial payments gives them the opportunity to buy a larger house and the soon coming larger salary should come before the payments increase.

Many are now using an interest only mortgage to get the larger house, but have no real prospects of a larger salary. This could certainly lead to trouble with this type of mortgage. After the interest only mortgage changes to a fixed portion, and you start making payments on the principal, too, what happens is that the payments will now jump much higher. The payments were lower in the first place than what they should have been, but now the balance must be paid in the remainder of the time left.

If you are an investor and know how to take the extra portion of what would be your regular payment, and invest it for a higher return, then this could work well for you. Otherwise, it is probably just a good idea to make a full payment as often as possible, so that you can start reducing the principal before your full payments kick in.

When getting any mortgage, be sure to compare it with several other offers. This way you can see what is available, compare it, and find your best deal on an interest only mortgage. Joe Kenny writes for the UK personal finance sites http://www.ukpersonalloanstore.co.uk/mortgages.html and also http://www.nationsfinance.co.uk/mortgages/ ]]> http://www.artwoo.com/article/the-benefits-of-a-fixed-rate-mortgage http://www.artwoo.com/article/the-benefits-of-a-fixed-rate-mortgage#comments Sun, 17 Dec 2006 10:27:40 +0000 fixed rate mortgageadjustable rate mortgagemortgage paymentsmortgage loaninterest rateloan interest ratesinterest rates drop http://www.artwoo.com/article/the-benefits-of-a-fixed-rate-mortgage mortgage loan for your home you have a choice between an adjustable rate mortgage and a fixed rate mortgage.

There are many benefits in a fixed rate mortgage:

The primary difference between the two is that the interest rate with adjustable rate mortgage has the potential to go up or down depending on economic factors while the interest rate for a fixed rate mortgage remains the same throughout the life of the loan.

What's Good?

• With a fixed rate mortgage monthly payments remain stable over the course of the loan. Interest rates in the economy can go up or down, but the interest rate for your fixed rate mortgage remains the same. This means that your monthly interest and principal payments will not change as long as you are paying the loan.

• No unexpected increases in monthly payments due to interest rate increase. Since the interest rate does not change, you are not subject to increases with your monthly payment as you would be with an adjustable rate mortgage. With a fixed rate mortgage, you don't have to worry about income increases to ensure you will be able to cover future mortgage payments.

• Easier to budget because your monthly payments are stable. Since you always know what your monthly payments are going to be, it is easier to budget from year to year when you have a fixed rate mortgage.

What's No So Good?

• Higher initial monthly payments as compared to an adjustable rate mortgage. In the first few years of your fixed rate mortgage, your monthly payments will be higher than if you had an adjustable rate mortgage.

• A higher income is necessary to qualify for a fixed rate mortgage. This is because the fixed rate mortgage has a higher interest rate and subsequently a higher monthly payment. Lenders need extra assurance that you will be able to handle the monthly payment. Thus, the increased income requirement.

• May need to refinance if interest rates drop. If market interest rates drop and you keep your fixed rate mortgage, you will end up repaying much more in interest than if you refinance. Should the time come to refinance, compare the amount that you would pay in interest over the life of your loan to the cost of refinancing and the amount you would save.

Repaying in Half the Time

One of the factors that attracts borrowers to the fixed rate loan is the ability to repay in 15 years instead of 30.

All the characteristics of a 30-year fixed rate mortgage are present with a 15-year mortgage, but there are some key differences.

The interest rate with a 15-year fixed rate mortgage will be lower than that of a 30-year. However, since you are repaying the loan in a shorter period of time, the monthly payments will be higher.

Is the decrease in interest rate worth the increase in price? Usually, a borrower chooses a fixed rate mortgage, not because of the lower interest rate, but because of the decrease in time it takes to own the home. With a 15-year fixed rate mortgage, the homeowner gains home equity quicker than with a 30-year. Claim A Free e-book that will show you how you can claim free land and real estate: http://www.freelandproperty.com ]]> http://www.artwoo.com/article/saving-money-with-a-mortgage-calculator http://www.artwoo.com/article/saving-money-with-a-mortgage-calculator#comments Fri, 29 Dec 2006 18:27:02 +0000 mortgage calculatorloan payment calculatormortgage calculatorsmortgage loan paymentmortgage expertinterest ratesearch engine http://www.artwoo.com/article/saving-money-with-a-mortgage-calculator
A mortgage calculator can save you a lot of money

Even if you already have a mortgage, you might want to gauge how quickly you could repay your mortgage if you increased your payments to a certain amount or the amount you would have to pay each month to repay your mortgage within a certain about out time.

You don't have to be a mortgage expert to do these calculations. Using a mortgage calculator you can input information about your mortgage and the variable you want to change and find out numbers you are looking for.

Types of Mortgage Calculators

A mortgage loan payment calculator calculates the amount of your monthly payment based on the amount of the loan, the interest rate, points charged by the lender, cost of the loan, and the length of the loan.

By adjusting these factors in the mortgage calculator, you can estimate how your monthly payments will change. For example, if you are unsure of your interest rate, you can test various interest rates to see how your monthly payment will be affected.

Another scenario you can test using a mortgage calculator is how your monthly payment will change if shorten or lengthen the amount of the loan.

Some mortgage calculators allow you to test the amount you can afford to pay for a mortgage.

Into the mortgage calculator you enter your income information, the amount of down payment you would like to pay, debt information, and loan information. The mortgage calculator will return to you the amount you should qualify. The calculator also gives you the monthly payment and tax information for the mortgage you are qualified for.

Finding a Mortgage Calculator

Locating a mortgage calculator isn't difficult at all. You can easily find one by entering the phrase "mortgage calculator" into a search engine.

The search engine will return several results of websites to you. Look at the different calculators and play around with the functionality offered.

Bankrate.com offers a mortgage calculator that is fairly easy to use. You can find the calculator by visiting the website and typing "mortgage calculator" in the search box.

In the calculator, enter your mortgage information and monthly payments, and then click the "Show/Recalculate Amortization Table" button. You will be shown a table listing your payments for the length of your loan, along with the principal and interest with that payment and the balance of your loan.

Using Bankrate's mortgage calculator, you can also calculate the affects of adding extra money to your monthly payment, adding a lump sum annual payment, or a one-time payment during a specific month and year. When you recalculate the amortization table you can see the effect of the payments on your mortgage.

A mortgage calculator is a good way to play with factors associated with your mortgage and see the effect those factors have on your monthly payment and total payoff. If you have a mortgage, or you are thinking about getting one, a mortgage calculator will be of assistance to you Download a free ebook that shows you how to get the best mortgage: http://www.freelandproperty.com/ ]]> http://www.artwoo.com/article/mortgage-cycling-versus-bi-weekly-mortgages http://www.artwoo.com/article/mortgage-cycling-versus-bi-weekly-mortgages#comments Mon, 11 Sep 2006 06:27:06 +0000 bi weekly mortgagemortgage paymentsyear mortgagesenior mortgagebi weekly mortgagescyclingpatent pending http://www.artwoo.com/article/mortgage-cycling-versus-bi-weekly-mortgages Cycling versus Bi-Weekly Mortgages which one is really right for you? Choosing the correct one could literally save you thousands of dollars and shave off approximately 20 years on the life of your 30 year mortgage.

So, a little background on the principal of each program needs to be told. Bi-weekly mortgages became popular a few years back when interest rates were extremely high and it made a lot of sense to pay as much on the principal of your mortgage as you can in a systematic way.

The way it works is that your mortgage payments are split in two every month so you end up paying (26) 1/2 payments instead of 12 whole payments which in effect ends up paying one additional month towards your principal.

Doing this ends up saving the average homeowner thousands of dollars on the interest payments over 30 years and shaves off around 7 years of payments. Not bad for back then. But as interest rates started to drop the net effect of savings are not as great now as they were when rates were higher.

But with the discovery of a recent mortgage loophole by Craig Romero, a senior mortgage analyst, Mortgage Cycling was born. Mortgage cycling allows a homeowner to build up 10 times faster then biweekly mortgages and allows you to pay of your 30 year mortgage in 10 years or less.

Mortgage cycling allows a homeowner to build up equity in their home fast using a patent pending technique. So fast, it ends up paying off a traditional 30 year mortgage in just about 10 years.

At first I was skeptical on how powerful mortgage cycling is until I compared using a typical $150,000 loan for thirty years at 7% interest. After running the figures though the difference between a bi-weekly mortgage versus mortgage cycling is dramatic.

Equity using a Bi-weekly Mortgage verusMortgage Cycling

Equity 1st year

$1,520$14,061 Equity 3rd year

$4,900$44,972 Equity 5th year

$8,787$74,179 Equity 9th year

$18,397$136,429

No matter the loan amount, interest rates or mortgage terms, mortgage cycling showed to dramatically cut down the payment time and interest payments to your mortgage company over the life of the loan.

Imagine what you could do with all that extra money that you can put back in your pocket instead of your mortgage company.

Now mortgage cycling may not be for everyone. But for someone who has the discipline it can be a very effective way of building up the equity in your home and to pay it off extremely fast versus using a standard bi-weekly option. Ted Kushner writes about consumer issue topics of interests. If you would like to learn more about Mortgage Cycling and how it can reduce your 30 year mortgage to just 10 years visit: http://www.affiliaterevenuesources.com/mortgage-cycling ]]> http://www.artwoo.com/article/different-ways-to-repay-your-mortgage http://www.artwoo.com/article/different-ways-to-repay-your-mortgage#comments Sat, 29 Jul 2006 04:27:06 +0000 reverse mortgagemortgage brokerrepayment mortgagemortgage companiespersonal equity planmortgagesoptions http://www.artwoo.com/article/different-ways-to-repay-your-mortgage options on repaying it which some people don't realize. So, before you just take whatever is on the paperwork, you should consider the following options:

Capital and Interest Payments This is the most common way to repay your mortgage, since you make your payments each month on the capital, or principle, of the loan. In the U.S., this is called amortization and in the U.K., this is called a repayment mortgage. These types of loans are set anywhere from 10 to 50 years, depending on the lender and where you live. The payments that you give to the mortgage company each month take a percentage and place it toward the interest and the rest goes toward the capital of the loan. Earlier in the loan, most of the payment goes toward the interest and toward the end most of the payment goes to the capital.

Interest only repayment. While this type of mortgage is not widely used in the United States, it is in the UK. Basically, in this type of mortgage, the capital isn't repaid through the term of the loan, instead, you make regular 'payments' to an investment account or plan that helps you to build up a large lump sum that will in turn repay the mortgage completely at the end of the loan. This is usually referred to as an "investment-backed mortgage" or as any of these types of mortgages: "Personal Equity Plan Mortgage", "Individual Savings Account Mortgage", or a "pension mortgage". So, when you hear any of these terms, you will know what the mortgage broker is talking about. These types of mortgages offer some great tax advantages, so just ask your mortgage broker about them.

No interest or capital payments. If you are an older person, this might be the way for you to go. Some mortgage companies offer a mortgage that is usually referred to as a "reverse mortgage", "lifetime mortgage" or an "equity release mortgage", it just depends on where you live and where the mortgage company is located. Basically this type of mortgage is just compounded each year, with the interest rolled up into the capital. The only problem is that the debt increases each year that the mortgage is open. One of the reasons that these loans are meant for older people is that they are not usually repaid until the borrowers pass away.

There are also several other, less common, ways of repaying your mortgage you will just need to check with your lender to see what types of payment plans and options they offer before you sign your mortgage paperwork. You might be able to get a better payment plan by going with a less conventional way of repayment. Connie Barker is the owner of several financial websites including http://www.loan-providers.com ]]> http://www.artwoo.com/article/is-an-interest-only-mortgage-for-you http://www.artwoo.com/article/is-an-interest-only-mortgage-for-you#comments Thu, 05 Oct 2006 22:27:06 +0000 fixed rate mortgageadjustable rate mortgagemortgage paymentsinterest only mortgageinterest only mortgagesmortgage paymentmortgage interest http://www.artwoo.com/article/is-an-interest-only-mortgage-for-you interest only mortgages. It's no wonder. There is actually no such thing as a mortgage which you only pay the interest on. With an interest only mortgage, you still have to pay down the principal on the loan. What you actually get is an interest only payment method which lasts for a set period and then you revert to a more traditional type of mortgage.

As you probably know, your mortgage payment mostly goes to pay off the interest; typically 95% of your payment goes toward the loan interest. So for a standard $100,000 mortgage at 6% interest, your monthly payment would be $600. Of that $600, $100 goes to pay down your principal and $500 goes to pay the interest charges.

Interest only mortgages involve jumbo loans and the difference in the monthly loan payment gets larger as the loan amount increases. So while there is a difference of $100 for a $100,000 loan, the difference on a $1,000,000 loan would be $1000. Savvy investors can use that $1000 per month to leverage their income and build assets much faster.

Interest only mortgages have traditionally been used by investors or wealthy individuals who are able to make a profit on the principal part of their mortgage payment. However, today virtually anyone can obtain an interest only mortgage.

The payment period of the interest only mortgage is based upon the adjustable rate mortgage. However, sometimes, it can be offered with a fixed rate as well. However, the payment period usually does not run for the entire loan term, even with a fixed rate mortgage. Interest only mortgages are only temporary; InterstFirst loans only allow interest only mortgage payments to be made for half of the total loan term. When the interest only mortgage payments come to an end, the amount of your loan payment will then rise to include both the interest and principal.

Interest only mortgages have advantages for certain types of borrowers. For one thing, the payments at the onset are lower so this frees up additional cash to be used elsewhere It can be invested or it can be used for needed cash flow. The spare cash can be used in any manner such as additional income, college expenses, or to build savings. The catch is that after a certain time, your interest only payments will expire and then your loan payment will be higher each month thereafter.

You are the only one who knows your situation and can determine if an interest rate mortgage is right for you. Consult with a banker or mortgage broker for advice and specific financial information such as projected monthly payments, then weigh your other mortgage options before you decide. Gavin Sanderson writes articles about mortgages. Discover more information about mortgages at http://www.mortgage-savvy.com and http://www.mortgage-future.com. ]]> http://www.artwoo.com/article/is-a-balloon-mortgage-risky http://www.artwoo.com/article/is-a-balloon-mortgage-risky#comments Mon, 25 Dec 2006 12:27:10 +0000 fixed rate mortgageballoon mortgage30 year fixed rate mortgageyear fixed rate mortgagetraditional mortgagenew mortgageballoon mortgages http://www.artwoo.com/article/is-a-balloon-mortgage-risky balloon mortgage are you've either heard the really good or the really bad about the mortgage.

The really good is that, typically, the mortgage has low monthly payments.

The really bad is that the full amount of the mortgage is due within five to seven years. This large payment is why the mortgage has its name. With a balloon mortgage both features are true.

With a balloon mortgage, the payments are calculated in a method similar to that of a fixed-rate mortgage. When you make monthly payments, you pay as if you would be paying the mortgage for 30 years.

However, you don't have 30 years to repay the mortgage. After a specific period of time, the remainder of the balance must be repaid. If, at the time the loan comes due, you are still in the house, you must refinance a balloon mortgage.

In general, it is easier for homebuyers to qualify for a balloon mortgage than it is for a 30 year fixed-rate mortgage. This is one of the reasons homebuyers choose to obtain a balloon mortgage.

If, during the life of the loan, you continue to improve your credit and other qualifying factors, you may be able to refinance the balloon mortgage for a new mortgage, often with better terms.

Balloon mortgages are riskier for homeowners because the life of the loan is shorter than many other loan products.

While, it can be fairly easy to make the monthly payments on the mortgage, there could be difficulty once the loan matures.

At the time of the balloon mortgage maturity, you have several options from which you can choose.

You can sell your home, covert your balloon mortgage to a traditional mortgage, or refinance the mortgage. Of course converting the mortgage and refinancing it are both subject to credit approval.

In addition, you could run into costs associated with the loan transactions. If you are able to convert or refinance the balloon mortgage, you will be forced to sell your home.

It can be difficult to predict what market interest rates are going to do in the future. They could decrease, but they could also increase. When you have a balloon mortgage, you have to be concerned about future interest rates because you will be subject to them when the loan matures.

Your loan could come due in a time when there are high interest rates. Since you don't have a rate locked in already, you will be forced to qualify for those higher interest loans.

Not only do you risk high interest rates in the future, you also cannot guarantee that you will be able to refinance in the future. In the worst-case scenario, you could lose your job and the ability to qualify for a new mortgage.

Although the probability of this kind of situation occurring might be low, it is not nil. When you have a balloon mortgage, you must be prepared with alternative plans in the unfortunate event that your primary, and even secondary, plan falls through. Download a free ebook that shows you how to get the best mortgage: http://www.freelandproperty.com ]]> http://www.artwoo.com/article/working-with-lender-to-pay-mortgage http://www.artwoo.com/article/working-with-lender-to-pay-mortgage#comments Thu, 03 Apr 2008 09:15:04 +0000 kim leemortgage paymentmortgage paymentsbest betdumb ideamortgage companygood chance http://www.artwoo.com/article/working-with-lender-to-pay-mortgage
If you have missed a few mortgage payments there are a couple of things that you can do. First off, you can attempt to hide from your lender and hope that things get better on its own. As you can imagine, this is a dumb idea and one that is not going to get you very far. Your other option is to get in touch with your lender the second that you find yourself having problems with your mortgage payment. This is the best bet because when you let them know that you are having problems, they know that you are not trying to dodge them. Remember, foreclosure is not a fun process for either party. Your lender wants to avoid foreclosure just as bad as you. But if you hide from them, you are not giving them much of a choice when it comes to this.

You may be surprised to find out how much your lender can help you if you ask. If you have found yourself late on payments, or about to miss one altogether, ask your mortgage company what they can do to help you out. They may be able to let you slide for the time being, or set up your payments later in the month so that you can collect more money. Either way, you need to stay in touch with your lender so that you do not get too far off track. You should strive to never miss a single mortgage payment. But if you find yourself in trouble, do not run and hide. Instead, get in touch with your lender and ask them about how they can help. There is a good chance that they will work with you to repay your mortgage.

For HDB Rental units in Singapore visit http://www.rentinsingapore.com/browse/all/all/all Kim Lee writes for Singapore rental portal http://www.RentInSingapore.com ]]> http://www.artwoo.com/article/understanding-mortgage-basics http://www.artwoo.com/article/understanding-mortgage-basics#comments Sat, 16 Dec 2006 08:27:10 +0000 fixed rate mortgageadjustable rate mortgagemortgage basicsmortgage interesteconomynecessarilybuying a house http://www.artwoo.com/article/understanding-mortgage-basics mortgage basics.

Length Of The Mortgage

The size of a mortgage makes the length necessarily longer. Common lengths of mortgages can fall anywhere between ten and thirty years. This means, that if you pay according to the terms of the mortgage, that you will have it entirely paid off at the end of that time. Generally, the lower amount of payment you can afford, the longer the time you will need to pay off the mortgage.

Interest On A Mortgage

The interest rates on buying a house or property change every day - sometimes even more than once a day. It depends on the economy, and the area you live in. You need to shop around and get the lowest amount of interest that you can because even one percent over 30 years means a difference of over tens of thousands of dollars.

Two Types Of Mortgages

All mortgages will fall into one of two types. It will be either a fixed rate mortgage, or an adjustable rate mortgage. The fixed rate mortgage is one where the interest and payment amounts are andquot;fixed.andquot; That means it is always the same until the mortgage is paid in full. The other, an adjustable rate mortgage, is, like the name implies - adjustable. That means that the amount of your payments changes in an unpredictable way - according to the economy. If the economy is doing well, then your interest rates on the mortgage are lower - and so are your payments. But remember, it may cover a thirty-year period. No one can see that far ahead. A bad economy also means that your payments can become very high - maybe even too high. These are excellent when the economy is doing well, but you may need to get another mortgage if the economy goes bad.

Paying Off The Mortgage

The best type of mortgage will enable you to increase your payments, or make additional payments in order to reduce the amount you owe. This means that you will be able to pay off the mortgage early, and save a lot of money. Most mortgages, however, have clauses in them that will limit how much you can pay extra each year, or may not allow it at all. You may need to negotiate with the lender in order to get this put in the agreement.

When going for your mortgage, the best thing you can do to help yourself is to understand as much as possible about mortgages. Then, with that knowledge, shop around and get online quotes so you can compare various offers in order to get the best deal. Joe Kenny writes for the UK personal finance sites http://www.ukpersonalloanstore.co.uk and also http://www.cardguide.co.uk ]]> http://www.artwoo.com/article/are-tracker-mortgages-worth-it http://www.artwoo.com/article/are-tracker-mortgages-worth-it#comments Fri, 18 Aug 2006 07:42:59 +0000 variable rate mortgagemortgage paymentsmortgage worldmortgage termvariable rate mortgagesbank of englandinterest rate http://www.artwoo.com/article/are-tracker-mortgages-worth-it mortgage world. Tracker mortgages have a number of benefits as well as dangers, and it pays to know about these before shopping around. If you are looking for a mortgage then here is some advice about tracker mortgages and if they are right for you:

What is a tracker mortgage?

A tracker mortgage is fairly similar to a normal variable rate mortgage, although the variations in interest are much quicker. A tracker mortgage follows the base rate of interest imposed by the Bank of England; any changes in the rate will be reflected in your mortgage payments. Whilst variable rate mortgages usually take months to change, tracker mortgages will change rates within 14 days of a new rate being announced. This means that you can more quickly benefit from any drops in the rate. The change is compulsory, and part of the contract of a tracker mortgage will state that the interest rate must change in accordance with the Bank of England within a certain timeframe.

What are the advantages?

The obvious advantage of a tracker mortgage is that if the interest rate drops, then your payments will drop within a few weeks of the change. This means your mortgage stays competitive and is always in line with the current market level. This mortgage is great for people who want their mortgage to reflect the changing costs of borrowing, but also don't mind if their repayments fluctuate.

What are the problems?

The problem with a tracker mortgage is that if the interest rate rises, you will be left with higher payments almost straight away. If you are on a budget then higher payments could leave you in financial difficulty and unable to make your repayments.

Types of tracker

There are a number of types of tracker mortgage. The first type is the tracker mortgage that simply follows the base rate changes for the entire mortgage term. The second is one that runs with the base rate for a while before return to a standard variable rate, and the third is one that has a limit on how far the tracker rate can change. Finding the best type for you requires shopping around and looking at your circumstances in detail.

Who should get a tracker mortgage?

A tracker mortgage is good for people who can cope with fluctuations in payment, and so can afford to take the risk that the payments will rise in exchange for the chance that they will get lower. You should look at your financial situation rather than trying to predict the future interest rate. If you can afford higher payments at some point then you could benefit from low interest rates, and so pay less for your mortgage. Peter Kenny is a writer for creditcards-gb. For additional articles and an extensive resource for everything about credit cards, please visit us at http://www.creditcards-gb.co.uk and http://www.thriftyscot.co.uk/Mortgages/ ]]> http://www.artwoo.com/article/a-graduated-payments-mortgage-can-save-you-a-fortune http://www.artwoo.com/article/a-graduated-payments-mortgage-can-save-you-a-fortune#comments Fri, 29 Dec 2006 18:27:07 +0000 graduated payment mortgagefixed rate mortgageadjustable rate mortgagemortgage loan productadjustable rate mortgagesinterest ratepayment mortgages http://www.artwoo.com/article/a-graduated-payments-mortgage-can-save-you-a-fortune adjustable rate mortgages, but not many have heard of graduated payment mortgage.

Which is a shame, because it can save you a fortune.

This kind of mortgage presents another alternative for borrowers looking for a mortgage loan product to fit their needs.

With a graduated payment mortgage, the payments start out being low and rise over time. When the loan officer qualifies the borrower for a graduated payment mortgage, the initial (low) payment is used. This usually allows the borrower to qualify when he might not qualify for a fixed-rate mortgage.

How it Works Similar to a fixed-rate mortgage, the graduated payment mortgage has a fixed interest rate for the life of the loan. The payments on the graduated payment mortgage start out at a certain level and increase periodically by a percentage for a specific period of time.

For example, monthly payments on a $100,000 graduated payment mortgage might start out at $900 and increase by 7% every year for 5 years. After five years, the graduation is complete and the payments are fixed for the remainer of the loan.

During the graduation period, the graduated payment mortgage the monthly payments are not high enough to cover the interest on the mortgage. This causes a negative amortization. At the end of each year, the unpaid interest is added back to the loan causing the balance of the loan to increase.

The good news is that at the end of the graduation period, your payments begin to cover both the principle and the loan, thereby decreasing your balance.

GRM vs ARM Graduated payment mortgages are often compared to adjustable rate mortgages because of the variation in payments over time. However, these two loan products differ greatly in many aspects. For one, the graduated payment mortgage has a fixed interest rate meaning the interest rate does not change for the life of the loan. With an adjustable rate mortgage, however, the interest rate does change.

The scheduled payments for a graduated payment mortgage are calculated in advance. On the other hand, payments for an adjustable rate mortgage can vary from one time period to the next depending on the terms of the loan.

Who Might Benefit First-time homebuyers who are just starting out in their careers are ideal candidates for graduated payment mortgages. Since first-time homebuyers typically do not have high incomes, a graduated payment mortgage option makes it easier to qualify for a home loan.

In addition, those who are new in their careers typically expect to have pay increases over time which allow them to predict the ability to make the graduated payments.

Potential Risks A borrower with a graduated payment mortgage runs the risk of overestimating their future earning potential making it difficult to afford the mortgage in the future.

If the homeowner sells the home before the loan begins to amortize, he runs the risks of losing money on the home, especially if it devalues during that period of time.

As with any other loan product, a borrower should assess both the benefits and the risks of a graduated payment mortgage before making a decision. Download a free ebook that shows you how to get the best mortgage: http://www.freelandproperty.com/ ]]> http://www.artwoo.com/article/a-graduated-payments-mortgage-can-save-you-a-fortune http://www.artwoo.com/article/a-graduated-payments-mortgage-can-save-you-a-fortune#comments Fri, 29 Dec 2006 22:27:05 +0000 graduated payment mortgagefixed rate mortgageadjustable rate mortgagemortgage loan productadjustable rate mortgagesinterest ratepayment mortgages http://www.artwoo.com/article/a-graduated-payments-mortgage-can-save-you-a-fortune adjustable rate mortgages, but not many have heard of graduated payment mortgage.

Which is a shame, because it can save you a fortune.

This kind of mortgage presents another alternative for borrowers looking for a mortgage loan product to fit their needs.

With a graduated payment mortgage, the payments start out being low and rise over time. When the loan officer qualifies the borrower for a graduated payment mortgage, the initial (low) payment is used. This usually allows the borrower to qualify when he might not qualify for a fixed-rate mortgage.

How it Works Similar to a fixed-rate mortgage, the graduated payment mortgage has a fixed interest rate for the life of the loan. The payments on the graduated payment mortgage start out at a certain level and increase periodically by a percentage for a specific period of time.

For example, monthly payments on a $100,000 graduated payment mortgage might start out at $900 and increase by 7% every year for 5 years. After five years, the graduation is complete and the payments are fixed for the remainer of the loan.

During the graduation period, the graduated payment mortgage the monthly payments are not high enough to cover the interest on the mortgage. This causes a negative amortization. At the end of each year, the unpaid interest is added back to the loan causing the balance of the loan to increase.

The good news is that at the end of the graduation period, your payments begin to cover both the principle and the loan, thereby decreasing your balance.

GRM vs ARM Graduated payment mortgages are often compared to adjustable rate mortgages because of the variation in payments over time. However, these two loan products differ greatly in many aspects. For one, the graduated payment mortgage has a fixed interest rate meaning the interest rate does not change for the life of the loan. With an adjustable rate mortgage, however, the interest rate does change.

The scheduled payments for a graduated payment mortgage are calculated in advance. On the other hand, payments for an adjustable rate mortgage can vary from one time period to the next depending on the terms of the loan.

Who Might Benefit First-time homebuyers who are just starting out in their careers are ideal candidates for graduated payment mortgages. Since first-time homebuyers typically do not have high incomes, a graduated payment mortgage option makes it easier to qualify for a home loan.

In addition, those who are new in their careers typically expect to have pay increases over time which allow them to predict the ability to make the graduated payments.

Potential Risks A borrower with a graduated payment mortgage runs the risk of overestimating their future earning potential making it difficult to afford the mortgage in the future.

If the homeowner sells the home before the loan begins to amortize, he runs the risks of losing money on the home, especially if it devalues during that period of time.

As with any other loan product, a borrower should assess both the benefits and the risks of a graduated payment mortgage before making a decision. Download a free ebook that shows you how to get the best mortgage: http://www.freelandproperty.com/ ]]>