repayment mortgage http://www.artwoo.com Returned search results for repayment mortgage Copyright 2008 Sun, 23 Nov 2008 04:02:07 +0000 http://www.artwoo.com/rss/repayment+mortgage Mortgage Repayment Protection Insurance http://www.artwoo.com/article/mortgage-repayment-protection-insurance http://www.artwoo.com/article/mortgage-repayment-protection-insurance#comments Sat, 17 Feb 2007 20:27:15 +0000 mortgage repayment protectionprotection insurancebuildings and contents insurancedecreasing term assuranceendowment policyconcierge servicepremiums http://www.artwoo.com/article/mortgage-repayment-protection-insurance Mortgage Repayment Protection Insurance is usually taken out at the time you apply for a mortgage but can be arranged with some insurance companies after the mortgage has been completed.

You should seek suitable advice about arranging such cover from a suitably authorised person.

Mortgage Repayment provides cover in the event of you being unable to work as a result of an accident or illness or being made involuntary unemployed.

The maximum amount of cover that you can arrange is based on the amount of the monthly mortgage repayment plus you can also cover such things as the monthly premium and mortgage related life insurance monthly such as an or a policy.

Mortgage Repayment Protection Insurance usually pays out for up to 12 months.

You do not usually have to have a medical to arrange mortgage repayment protection insurance.

In the UK cover can usually be taken out as long as you work for at least 16 hours per week and are aged between 18 and 64.

The cover ceases once the mortgage is repaid or you reach age 65 or you retire or should you stop maintaining the monthly premiums or indeed should you just decide to cancel the policy. Mortgage Repayment Protection Insurance can be taken out either just to cover one applicant or both applicants. If both applicants are covered and say they are both on the same income then the policy will pay out half of the amount of the monthly cover in respect of the applicant who is ill.

In the UK the cost of Mortgage Repayment Protection Insurance is based on the amount of the monthly cover you have arranged and will vary between the various companies who offer such cover.

There are some exclusions with this type of policy which you should establish. Alan Hope runs a lifestyle management and business for both UK and Overseas clients. Visit his website at http://www.insuranceplan.org.uk/decreasing_term_mortgage_life_insurance.html ]]> Using a Mortgage Repayment Calculator Online http://www.artwoo.com/article/using-a-mortgage-repayment-calculator-online http://www.artwoo.com/article/using-a-mortgage-repayment-calculator-online#comments Thu, 11 Sep 2008 03:22:23 +0000 mortgage repayment calculatorsmortgage repayment calculatorkey mortgageinternet search enginemortgage worksinterest only mortgagesmortgage balance http://www.artwoo.com/article/using-a-mortgage-repayment-calculator-online mortgage works is the key to getting it at the best available price. You know that what you will be paying will depend on the size of the mortgage, the number of years over which it is going to be repaid, and the interest rate applied. But how do all these factors interrelate and, if one changes, what happens to the other figures?

It is finding the answers to these fairly fundamental questions that makes a such an indispensable tool. Finding such a calculator is very simple -- just key "mortgage repayment calculator" into your and you will be presented with a wide range of websites hosting an easy-to-use calculator. An especially neat and straight forward calculator appears on the money pages of the Guardian newspaper. Not only does this particular version distinguish between repayment and interest-only mortgages, but also lists the remaining you still owe after a given number of years, together with the amount of interest you will have paid by each year.

Using is simplicity itself. There will be one box in which you fill in the size of the mortgage you want to borrow. A second box will invite you to indicate the number of years over which the mortgage is to be repaid and a third box will ask for the applicable interest rate.

The resulting calculation will show you what the monthly repayments will be, the total sum of interest that you will need to pay over the term of the mortgage and (with most calculators) the balance outstanding on the mortgage over successive years.

The calculators are completely free to use, so can be experimented with as often as you like and until you are entirely comfortable with what information needs to be input and just what the results have to tell you.

There is something of a thrill in seeing the figures emerge so easily and quickly from the mortgage repayment calculator, since the sums involved are really quite complicated. With repayment mortgages, for example, they need to take into account that you will be paying interest on a diminishing outstanding mortgage balance, yet also that the interest payable needs to be "compounded" (outstanding interest due needs to be added back to the diminishing balance of the principal, because you will in effect be paying interest on the interest). Payments on interest-only mortgages, of course, are a lot easier to calculate -- involving the multiplication of the amount borrowed, by the number of years, by the interest paid.

The mortgage repayment calculator really comes into its own, of course, when you have some serious decisions to make about your mortgage. If it is your first, then you will want to know down to the last penny just how much the monthly repayments will be for the interest rate you are quoted. You may also probably want to compare the shorter- and longer-term costs of a repayment mortgage against an interest only mortgage. The calculator will help you compare the offers available from competing mortgage lenders. If you already have a mortgage, you might be interested in the effects of any rise or reduction in interest rate. Would a remortgage be a sensible offer? Again, the mortgage repayment calculator will be an indispensable tool in helping you decide.Confused.com is one of the UK's biggest and most popular price comparison services. Confused.com helps consumers save money on everything from mortgages to current accounts.]]> Is An Interest Only Mortgage A Good Idea? 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 , 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 , you indirectly pay for the capital. You pay for the capital through an or other lump sum. So, instead of repaying your 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 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 .

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/ ]]> Understanding Interest Only Mortgages http://www.artwoo.com/article/understanding-interest-only-mortgages http://www.artwoo.com/article/understanding-interest-only-mortgages#comments Sat, 19 Jan 2008 04:20:01 +0000 mortgage agreementrepayment mortgagefirst time buyersinterest only mortgageloan lendersrepaymentsamount of money http://www.artwoo.com/article/understanding-interest-only-mortgages interest only mortgage. This type of mortgage means that the monthly that you make are just taken off the amount of interest that the mortgage accumulates. The capitol which you borrowed must be paid back when the mortgage has run its terms.

The interest only mortgage seems to be very popular with those who are house buying for the first time. Recent research showed that the amount of taking out an interest only mortgage rose to 18%. The mortgage could be popular because the rates of interest are usually a lot lower than a . Due to this it is the only type of mortgage that many starting out first time in buying can afford.

However while low rates of interest are a good thing the down side is that when the term of the mortgage comes to an end you will still owe the same that you started out owing. If you do not have a means of paying this then of course you would have to take out another loan.

Lenders have perhaps become a little lack with this type of loan because years ago you would have to be able to prove to them that you had means of repaying the capitol at the end of the mortgage. Today you can take out an interest only mortgage and having to find the capitol is only mentioned on the bottom of the .

Ideally those taking out this type of mortgage should have some form of investment that they are able to fall back on and so use it to repay the capitol of the loan. While the interest only mortgage does give the cheapest rates of interest over the long term it is one of the dearest types of mortgage.

If you want to be sure that you can own your home at the end of the mortgage arraignment then you have to have a repayment mortgage, unless of course you already have the means by way of an ISA. This means that part of the monthly repayment goes towards the interest and the other part towards the capitol. If you have an interest only mortgage then you should consider changing a part of it to a repayment mortgage or start saving money in an ISA account.

If you want to check out the rates of interest that come with interest only mortgages then go with a specialist website. You can get several quotes together on one page which makes comparing quotes easy and quick. You also have to take into account the small print of any loan you are considering as this is where you can find the added costs. Costs such as set up fees can vary widely from lender to lender so it is worthwhile choosing a mortgage with low costs or costs that have been waivered. The small print can include valuation fees and a lump sum payment if you should want to switch mortgages within s certain time frame of taking out the mortgage. Jason Hulott is Business Development Director at UK Mortgages service, PolarMortgages (http://www.polarmortgages.co.uk). Visit Polar Mortgages now for more information about UK mortgages and remortgages. ]]> How Is Your Mortgage Interest Calculated? http://www.artwoo.com/article/how-is-your-mortgage-interest-calculated http://www.artwoo.com/article/how-is-your-mortgage-interest-calculated#comments Sat, 21 Jul 2007 08:15:00 +0000 repayment mortgagemortgage balancemortgage dealmortgage debtinterest only mortgagesthis meant thatrepayment mortgages http://www.artwoo.com/article/how-is-your-mortgage-interest-calculated
With the amount of loan that is outstanding remains the same throughout your and therefore the amount of interest you pay is known at the beginning of each year, assuming interest rates don't change.

However, this is not the case with s, also known as capital and interest mortgages. With this type of mortgage part of your monthly payment is used to reduce the amount of your loan outstanding. This means at the end of each year you will have less than at the start of the year. A number of years ago most lenders calculated interest annually. at the start of each year they looked at the amount of mortgage that you owed and based the interest that you would pay in the following year on that amount. They took no account of the amount of your mortgage that you paid off monthly during that year. At the end of the year they would look at the reduced amount of mortgage that you now had and start the process again.

In recent years a significant number of lenders have moved to calculating interest daily. This is more beneficial to the borrower because the amount of interest you pay takes account of the fact that your is reducing each month.

Let's take a simple example of a repayment mortgage of =A3100,000 being repaid over 20 years with an interest rate of 5%. The monthly payment would be =A3659.96. Of this approximately =A3250 is for repayment of the loan. So after six months you would have paid roughly =A31500 of your =A3100,000 mortgage back. So why should you have to pay interest for the second six months on a loan of =A3100,000 when your mortgage is now only =A398,500? Well you don't have to. If you take out a mortgage with a lender who calculates interest daily you will only ever pay interest on the actual amount of loan that you have outstanding.

The best way to make sure you get a mortgage with interest calculated daily is to use a mortgage search engine that allows you to look only at mortgages that have this feature. It's not the only thing you should take account of =96 ultimately the true cost of the mortgage over the mortgage deal is what matters =96 but its worth looking out for. http://www.mform.co.uk allows you to compare mortgages form all UK mortgage lenders. ]]> How To Choose The Right Type Of Mortgage http://www.artwoo.com/article/how-to-choose-the-right-type-of-mortgage http://www.artwoo.com/article/how-to-choose-the-right-type-of-mortgage#comments Sun, 13 Aug 2006 10:27:09 +0000 reverse mortgageendowment mortgageinterest only mortgagesrepayment mortgageequity mortgagemortgage worksendowment mortgages http://www.artwoo.com/article/how-to-choose-the-right-type-of-mortgage repayment mortgages, s, pension linked mortgages and interest-only mortgages. But the mortgage bucking the normal trend is called a . You get the mortgage from the financial institution for giving up certain part equity in your home. Given below are some points about various mortgages. What is a reverse mortgage?

A reverse mortgage, or an , is a loan given to seniors to allow them to convert the equity of their home into cash. The best part is that you own the house even while converting the house into cash. To apply for reverse mortgage, you should be older than 62 years old.

Should I go for capital repayment mortgage or low-cost endowment mortgage?

A capital repayment mortgage is the better option than low-cost endowment mortgage. Though the monthly outgoings for both the types are more or less the same, capital repayment mortgages offer better flexibility if you have any financial problems and want to restructure your finances. Besides, inflation will erode the value of profits derived from an endowment policy.

How does a pension linked mortgage work?

A pension linked in the same way as an endowment mortgage and reverse mortgage. You have to make two payments each month. One payment pays off the interest on your loan. The other payment is meant for your monthly insurance premium that pays off your loan when the term expires. The remaining amount pays your pension when you retire. When you retire, you can convert some portion of the pension into a lump sum that can be used to pay off the mortgage. While opting for this type of mortgage, you should remember that it is more expensive than the endowment mortgage. Also, since you are using the part of pension to pay off the mortgage, you will be left with a small amount as your pension.

What is an interest-only mortgage?

In an interest-only mortgage, you pay only the interest on the loan and are appropriate for people who are nearing or have entered retirement age, as it is difficult for them to opt for a mortgage of longer duration. For other great articles about reverse mortgages please check out http://www.reversemortgageadvice.info and http://www.reversemortgagelinks.info. For other great updated news and notes about a wide variety of general interest topics go to http://www.information-depot.info . ]]> Benefits Of A Second Mortgage http://www.artwoo.com/article/benefits-of-a-second-mortgage http://www.artwoo.com/article/benefits-of-a-second-mortgage#comments Tue, 19 Dec 2006 06:27:07 +0000 second mortgage loansfirst mortgagemortgage lendersamortization schedulessecond mortgagesballoon paymentsbank loan http://www.artwoo.com/article/benefits-of-a-second-mortgage
What does the term andquot;second mortgageandquot; really mean? As far as real estate is concerned, a single piece of property can have multiple loans, or mortgages against it.

The loan that is first registered with the county or city is known as the . The loan that is registered second is known as the second mortgage.

This has many benefits over a normal .

There can be as many mortgages on a property as there are lenders willing to provide funds.

If a loan happens to go into default, the loans are repaid in the order they were registered.

So, the first mortgage is paid first, the second mortgage is paid second, and so on. Because of this, subsequent mortgages are more of a risk for the lender.

In exchange for assuming the risk of lending a second mortgage, lenders often charge higher interest rates.

In many cases, the second mortgage has a shorter term than that of the first mortgage. Also present with many are fixed and .

Homeowners have many reasons for taking out a second mortgage. Some of the most common reasons are for home improvement, increasing cash, paying off other debts, or investing in a business.

In some cases, the second mortgage is used as a down payment for the first mortgage when the home is purchased.

When you are choosing a lender for a second mortgage, you will use many of the same considerations that came into play for your first mortgage.

The interest rate, repayment terms, and fees associated with the second mortgage are some of the primary factors that might cause you to choose one lender over another.

The repayment terms are another factor that you should use to determine a lender for a second mortgage.

Some can be repaid in as much as 15 or 20 years. However, some loans must be repaid within a year.

Generally, the shorter the repayment period on the second mortgage, the higher the monthly payments will be. You should choose a loan with repayment schedule that falls in line with your ability to repay.

To obtain the loan, you will usually have to pay a fee that is a percentage of the loan. Your lender may refer to this percentage as andquot;pointsandquot;.

One point is equivalent to one percent of the amount that you borrow. Therefore, if you borrow $10,000 with five points as the fee, then you would pay $500 (5%) in points.

The number of points changed will vary by lender. This is where shopping around will pay off for you.

In some states, there is a limit to the amount of points a lender can charge for a second mortgage.

Check with a banking commissioner or state consumer protection office to find out if there is such a limit in your state.

Make certain that you get the amount of the fee in writing from the lender before taking the loan. Download a free ebook that shows you how to get the best mortgage: http://www.freelandproperty.com/ ]]> Different Ways To Repay Your Mortgage 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 . 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 : " Mortgage", "Individual Savings Account Mortgage", or a "pension mortgage". So, when you hear any of these terms, you will know what the 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 offer a mortgage that is usually referred to as a "", "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 ]]> Choosing From A Mortgage Medley http://www.artwoo.com/article/choosing-from-a-mortgage-medley http://www.artwoo.com/article/choosing-from-a-mortgage-medley#comments Sun, 08 Jul 2007 18:19:59 +0000 endowment mortgageendowment mortgagesinterest only mortgagesmortgage loansinterest only mortgagemortgage marketsmortgage loan http://www.artwoo.com/article/choosing-from-a-mortgage-medley s. What is the best kind of mortgage loan? That would be based on how much you are intending to borrow and on the rate of interest that you would be able to afford. Generally speaking, the greater the period of the loan, the lower will be the interest rate that you will be charged.

With regards to the various types of mortgages, there are two major types. On the one hand we have the repayment-only mortgages. On the other hand, we have the interest-only mortgages. Why don't I just explain the two types to you?

Now, repayment-only mortgages consist of two types of repayments. When you choose to get a repayment-only mortgage, you will be paying off monthly installments of both capital and interest. Sometimes you will not be able to help feeling as though you are shelling out far more than you would in other types of mortgages. Well, my advice to you would be not to worry too much about it. The only reason that you seem to be paying more is because you are paying off not just the interest but also parts of the capital.

So now let us talk about interest-only loans. How does this work? Well, if you had been following the a few decades ago, you would have heard of the notion of s. If you are unaware as to what an endowment mortgage is, try reading on.

An endowment mortgage is a type of interest-only mortgage where the borrower is required to invest in an endowment fund or some other kind of life assurance policy. Thereafter, the borrower has to pay off only the interest that accrues on the mortgage. The capital is repaid by the endowment fund. Of course, this has its bad points, for the fund's performance is affected by market conditions. In the case of the in the United Kingdom, these flaws were revealed when the markets collapsed in the 1990s. During that period, a large number of mortgagers suffered because their funds performed badly, leading to losses for all.

Endowment mortgages have ceased to be popular in the world of today. However, other kinds of more stable, interest-only mortgages are still availed of. Would an interest-only or a repayment mortgage suit you best? In my opinion, that is simply a matter of preference. Both types have their own pros and cons. Make sure that you do thorough research of the mortgage markets before making your final decision. Get the best deals on mortgage refinance at http://www.rebuild.org/refinance.html mortgage loans at http://www.rebuild.org/mortgages.html and home equity loans at http://www.rebuild.org/home-equity-loan.html ]]> When Looking For Business Mortgages UK Seek A Specialist's Advice http://www.artwoo.com/article/when-looking-for-business-mortgages-uk-seek-a-specialists-advice http://www.artwoo.com/article/when-looking-for-business-mortgages-uk-seek-a-specialists-advice#comments Sun, 10 Feb 2008 04:25:02 +0000 fixed rate mortgageloan repaymentsbusiness mortgagesmortgages ukbusiness mortgagehonest adviceinitial rate http://www.artwoo.com/article/when-looking-for-business-mortgages-uk-seek-a-specialists-advice s UK then a specialist's advice is one of your most valuable tools. A specialist is able to search the whole of the market place to find you the cheapest rate of interest and best deal for your loan. They are also there to work with you from start to finish which makes sure you get off to the best start possible.

Business can be confusing; you will have to make decisions regarding the type of mortgage you want to take out. You will have to consider options such as a repayment or interest only mortgage, whether you want a fixed rate or variable rate and how long you wish to take the mortgage over. A broker will offer free regarding all aspects of a business mortgage and this is essential when starting out.

If you want to be able to budget and know how much you will be paying for your mortgage each month then consider a fixed rate. A fixed rate will remain set for a certain length of the mortgage. However once this period of time has elapsed the mortgage will then revert to a variable rate and this can mean a big jump in you repayments each month. The usually has early repayment penalties and this means if you find you have the funds to repay earlier you would have to forfeit a large sum of money.

If you choose a variable rate then the could be lower but bear in mind that the will fluctuate in line with the base rate set out by the Bank of England. However if you take advantage of a low rate and this should rise by just a fraction it can add a lot onto the monthly repayments.

When it comes to interest only or repayment business mortgages UK then you have to consider the advantages and disadvantages of both. The advantage of the interest only mortgage is that you will pay less each month. However the disadvantage is you will be left owing the capital, the amount you initially borrowed at the end of the loan. The lender will usually want assurance that you are able to repay this.

A repayment mortgage means that you repay part of the interest and part of the capital each month. The advantage of this is that you will pay off the loan within the time frame you took the loan over and will not have to find a lump sum. The disadvantage is that this type of mortgage will boost up the monthly repayments of the loan.

Of course there is much more to consider and think about before settling on business mortgages UK. This is where knowledgeable advice comes in. A specialist will be able to work with you when it comes to your business proposal and getting an appraisal for the property you are wishing to buy. They will then work with lenders on your behalf to secure you the best deal possible. Sean Horton is a Director of Enhanced Wealth (http://www.enhancedwealth.co.uk), a whole of market mortgage broker and IFA specialising in mortgage advice and the associated areas of income protection, mortgage protection, mortgage life cover ]]> Mortgage Repayment Insurance For Homeowners http://www.artwoo.com/article/mortgage-repayment-insurance-for-homeowners http://www.artwoo.com/article/mortgage-repayment-insurance-for-homeowners#comments Thu, 20 Nov 2008 00:50:28 +0000 http://www.artwoo.com/article/mortgage-repayment-insurance-for-homeowners Anyone who has a mortgage will no doubt have worried how they would manage financially in the event that they lost their income due to involuntary redundancy or incapacity (ie accident or sickness). It is a frightening thought that with just a few missed payments you could face going Court and even having your home repossessed. The good news is that you can protect your ability to maintain your mortgage repayments in the event of financial distress caused by one of these events, by taking out a mortgage repayment insurance policy.

Mortgage payment protection insurance - or MPPI for short - is an innovative insurance that protects homeowners against the financial fallout of losing their income due to no fault of their own. Should you need to make a claim on your policy, then you will start to receive a tax free benefit anywhere from one to three months after the event, depending on the policy you buy.

Some providers will offer the additional benefit of you being able to back date your claim to the first day of unemployment or incapacity, meaning that you do not lose out financially whatsoever.

This mortgage insurance payment will continue to run for one to two years' (again, depending on the individual terms of the policy) or until you are back to work, whichever event happens sooner. This means that at a difficult time you can focus on your recovery or looking for a new job, rather than worry about having your home repossessed.

However, if you are feeling the pinch financially already, you may think that mortgage repayment insurance is something that you simply cannot afford, however much you think it is a good idea. But, by shopping around for the cover, you can get a deal that suits your budget, with cover starting from just a few pounds every month for every £100 worth of cover required.

Certainly, by buying your mortgage protection insurance from your mortgage lender, you could find that the cost is prohibitive. Independent brokers however can often offer cover at a much reduced price, without any loss of policy features and benefits, so never just accept the first quote for cover that you are given -- look around at whom else is offering the cover as you can often make quite substantial savings on the cost of the premiums.

Another consideration when looking at buying mortgage repayment insurance is to check your eligibility for the product. As with all insurance cover, there will be some exclusions within the policy terms and conditions, typically people who are part time workers or are retired, and those with a pre-existing medical condition, so make sure that meet all the eligibility criteria before you sign up for cover.

Chosen wisely, mortgage repayment insurance can be a financial lifeline that will help you to maintain your mortgage repayments at a time when you have no income. It will make any worries about repossession literally melt away, leaving you free to find alternative employment or to recover.Sean Horton is a Director of Enhanced Wealth who offer competitive mortgage insurance cover for mortgage repayment insurance.]]> The 3 Types Of Mortgage Loans http://www.artwoo.com/article/the-3-types-of-mortgage-loans http://www.artwoo.com/article/the-3-types-of-mortgage-loans#comments Mon, 20 Nov 2006 02:27:03 +0000 30 year fixed mortgagefixed rate mortgagemortgage loansmortgage loan optionsadjustable rate mortgagemortgage repaymentinterest rates http://www.artwoo.com/article/the-3-types-of-mortgage-loans mortgage loans available. Sometimes it can be difficult to tell which mortgage loan is suitable and applicable to you.

I will discuss the 3 main types of mortgage loans on the market. Most banks and lenders offer mortgage loans that belong to one of these categories.

1. Fixed Mortgage Loan

Fixed mortgage loans are the most popular and common among the three types of mortgage loan.

You take out a mortgage loan with a lender and you pay a certain repayment amount for a fixed period of time. Most people usually choose loans as the monthly repayment amounts are low and the usually evens out in a 30 year period.

One disadvantage of 30 year fixed mortgage loan is you have to repay more for your mortgage loan in total compared to someone who takes up a 15 or 5 year loan.

There are also shorter time periods such as 5 year, 10 or 15 years fixed mortgage loans. It allows people who want to pay off their house in a shorter period of time. Of course, you have to make sure you have the financial capability to repay higher monthly repayments.

There is also another sub-category of mortgage loan called loan or ARM. Usually, you will start off with a lower interest rate compared to a 30 year fixed mortgage loan. So you ended up paying less each month for your .

However take note that ARM is highly fluctuating depending on interest rates. In other words, you pay less for monthly repayment when interest is low and pay more when interest rates is high.

2. Convertible Loans

Convertible loans are becoming more popular as it allows people to keep their open allowing for more flexibility.

If you find interest rates are too high, you can convert to a loan. If interest rates are low, you can also convert to ARM based mortgage loans.

There are too many varieties of convertible loans under this category. However I list one type of convertible loans I dealt with.

Balloon Loan

A balloon loan is a fixed rate convertible loan. Usually, you start off by repaying small monthly repayments for a period of years, usually 5 or 7 years. At the end of that period, you will need to repay the loan in one lump sum.

So what's the advantage of a balloon loan? It is mostly used by investors or property dealers who are looking to sell the house in a short period of time. They can take advantage of low interest rates without locking their money on a house. Since they will have a large sum of money when they sell the house, it will not be a problem to return the lump sum.

3. Special mortgage loans

These are mortgage loans that are only being offered to a group of people. For example the FHA mortgage loans are only available for first time home buyers or people with bad credit.

Another one is the veteran affairs mortgage loan. They are only offered to widows of the US armed forces.

The best way to know whether you qualify or is suitable for a mortgage loan is to speak to a professional mortgage consultant before you decide to take up any mortgage offer Ricky Lim works in a finance company specialising in Home Refinancing Loans. Visit his site at http://www.about-homeloan.com for countrywide home loans rates and a free home loan calculator ]]> Assortments Of Mortgage Loans http://www.artwoo.com/article/assortments-of-mortgage-loans http://www.artwoo.com/article/assortments-of-mortgage-loans#comments Fri, 24 Aug 2007 18:35:00 +0000 interest only mortgagesinterest only mortgagetraditional mortgagereal estate boombuying a housepurchase real estateloan providers http://www.artwoo.com/article/assortments-of-mortgage-loans real estate boom. Some are making the most of the opportunity and buying their dream homes. Others are looking at house buying as a lucrative investment option. Still others are hoping to in order to let it out on high rent. There are hundreds of reasons for a person's wanting to buy a house, and the actual process of collecting the money is not half as difficult. Whatever your reason for might be, there will definitely be cheap mortgage loans to help you out.

Financial institutions had become aware of the need for mortgages a long time ago. these days are quite aware of the cut-throat competition between mortgage sellers. That is why they have managed to develop a variety of different mortgage loan plans. If you want to find out about the various different plans, just look around and compare mortgages. The mind gets boggled by the various types that are available.

To add to the popularity of mortgages, loan providers have come up with a number of borrower-friendly plans. In the , the borrower has to pay the interest amount and part of the principle. However, this tends to be rather costly in the long run. To combat this, mortgage sellers have come up with the interest-only mortgage. In this kind of a mortgage, the borrower repays only the interest amount every month. The principle can be repaid in one go at the end of the term or at a time specified by the borrower. In interest-only mortgages the monthly repayments are lower. However, a negative of this type of mortgage is that the final payment will be a large one.

House buyers can try to secure mortgages that allow borrowers to repay the loan in one single installment or before the expiry of the term. Some mortgages charge penalties on early repayment. However, if you are expecting to win some major cash prize, it makes sense to find a mortgage that allows early repayment.

Some loans and mortgages necessitate the creation of repayment vehicles to help pay the loan at the end of the term. These repayment vehicles may include endowment funds, pensions, and savings accounts. One of the advantages of using repayment vehicles is that many of them are tax-free.

Thus, there are many kinds of mortgages that you can find. Ensure that you choose the best one. Start out and compare mortgages at http://www.nationsfinance.co.uk/mortgages/compare-mortgages.html then get mortgages at http://www.ukpersonalloanstore.co.uk/mortgages.html and cheap mortgage loans at http://www.rebuild.org/mortgages.html ]]> Financial Terminology: Jargon Buster M-R http://www.artwoo.com/article/financial-terminology-jargon-buster-m-r http://www.artwoo.com/article/financial-terminology-jargon-buster-m-r#comments Wed, 12 Apr 2006 14:00:21 +0000 mortgage paymentsmortgage termemailpersonal loanercnegative equityaccess http://www.artwoo.com/article/financial-terminology-jargon-buster-m-r
1. Mortgage A mortgage is a loan taken out in order to buy a home. The property that you buy is the security against which your repayments are held, so if you don't repay the loan, the home is repossessed.



2. The period of time over which the mortgage loan is to be repaid.



N

1. You go into negative equity when the value of your home is less than the amount that you owe on your mortgage. Can happen very easily if you take out a 100% mortgage or if property prices fall.

2. Net annual income Your Annual Income after Tax deductions and Pension and Health contributions but before personal expenses like Mortgage or Rent payments and Utility bills.



O

1. Online The ability to access your account via the Internet.

2. Online decision The ability of the loan provider to issue an automated decision back to the applicant via their web browser or address.



P

1. Payment protection Insurance which pays your monthly , should you lose your income through sickness, injury or unemployment.

2. Penalty rate A fee payable by you for making late payments as defined in your personal loan agreement. The penalty rate will normally be a few pentage points higher than your loan's standard APR and can go into affect after a single late payment.

3. Principal The total amount of the loan on which interest is to be calculated.



R

1. Redemption penalty Also known as Early Repayment Charge (ERC) is the charge payable to some loan providers should the loan be repaid in full before the full term of the loan has expired. For example, an arranged loan over 36 months may incur an ERC if it is repaid after 24 months, or any point before the 36 months has been reached. The average ERC can amount to the equivalent of 2 months interest.

2. Re-mortgage Repaying one mortgage by taking out another new loan secured on the same property.

3. Repayment holiday/break A pre-agreed point in time where you are allowed to skip a monthly repayment. Usually a maximum of one a year, often at Christmas.

4. Repayment mortgage A mortgage where the capital borrowed is gradually repaid over the agreed term along with the interest.

5. Repayment period Also called Loan Term, this is the time it takes to pay back the loan. A shorter period means higher monthly payments (there are fewer months over which to spread them), but less interest paid in total on the loan. About The Author: Richard can be found at: http://www.hallamfinance.com - Loans and Mortgages for People Who Are Different http://www.loansunited.com - All the UK's Loans and MOrtgages in One Place ]]> Mortgage Arrears Primer http://www.artwoo.com/article/mortgage-arrears-primer http://www.artwoo.com/article/mortgage-arrears-primer#comments Sat, 14 Jul 2007 09:35:01 +0000 mortgage arrearsmortgage paymentscontactembarrassedbeneficialrepayment planforeclosure http://www.artwoo.com/article/mortgage-arrears-primer Mortgage arrears are payments that are not made on time or late . Mortgage arrears are something a homeowner should try to avoid. Falling behind on a mortgage can be a very devastating thing. Falling too far behind can mean and the loss of the home.

Dealing with mortgage arrears is the only way to protect a home from foreclosure. If a person falls behind on their mortgage there are some very specific things they should do.

One of the very first things is to speak with the lender. Keeping the lines of communication open is the best possible thing to do. In this situation many people tend to avoid their lender. They are or afraid of what might happen. The truth is that lenders do not really want your home.

They want your money and if they have to take back the property they are also losing out, so they will do everything possible to ensure they get their money from you. Lenders are willing to work with you, but you have to them. Explain the situation and they may be able to work out something to make it easier for you to pay up the mortgage arrears.

When calling your lender it is best to have a plan. You should know what you financial situation is currently, why you fell behind and how you can handle the situation. You should have all of this information handy so you can fully explain your situation to your lender. Additionally, your lender may come up with their own options and ideas to help you.

If your lender seems to be unwilling to work with you then you should contact a financial specialist who may be able to work things out with the lender. They can help you put together a plan that will be to both you and your lender.

In order to get your mortgage arrears taken care of without falling further behind, you will have to pay as much as you can possibly afford. You have to be willing to do this even if your lender offers you a . While the repayment plan will likely be reasonable, you will be racking up more interest and in the long run end up paying even more money.

The bottom line about mortgage arrears is that they are the homeowners responsibility. You owe the money and the lender has the right to the money. There is no getting out of it. However, if you act responsibly and fast you can get a handle on your mortgage arrears and clear up the situation with minimal hassle.

For the future, you may consider getting special insurance that would pay your bills, including your mortgage, for you should you become unable to work for a period of time or fall under financial hardship. This can help to avoid mortgage arrears in the future. James Copper is a mortgage broker with over 30 years experience. He works for http://www.any-loans.co.uk/mortgage-arrears.shtml as a Mortgage Arrears Advisor. In his spare time he writes on all things finance and investment related. ]]> A Broker Commercial Loan Mortgage Can Work Out Cheaper In The Long Run http://www.artwoo.com/article/a-broker-commercial-loan-mortgage-can-work-out-cheaper-in-the-long-run http://www.artwoo.com/article/a-broker-commercial-loan-mortgage-can-work-out-cheaper-in-the-long-run#comments Mon, 11 Feb 2008 05:35:03 +0000 fixed rate of interesttechnical jargonrepayment mortgageconfusing aspectsfixed mortgagecommercial mortgagescommercial mortgage http://www.artwoo.com/article/a-broker-commercial-loan-mortgage-can-work-out-cheaper-in-the-long-run s come with and this is one of the most of all loans.

The broker commercial loan mortgage will be clearly explained to you by the broker who makes choosing which type of mortgage for your needs easy. There is the commercial fixed rate and the variable rate. The for the mortgage will remain at a set price for a certain period of time which will be defined by the lender. After the time period for the fixed rate has ended the loan will then go onto a variable rate for the remainder of the term of the mortgage. With this type some loans come with early repayment fees if you should find you are able to repay earlier than anticipated. However a broker can search out a fixed rate that does not incur these charges. One of the biggest benefits of the fixed rate is that you know exactly how much you will be paying for your monthly repayments during the fixed period of time.

A variable rate commercial mortgage will be based on the Bank of England's base rate. If the rate goes up then so will your monthly repayments. One of the advantages of taking out a mortgage that comes with a variable rate is that you are usually offered a cheaper initial rate of interest than comes with a . The downside is that the repayments will fluctuate so this makes budgeting each month a nightmare.

There is also the capitol and an interest only mortgage and again a broker commercial loan mortgage comes with an explanation of both. The interest only mortgage will work out with cheaper monthly repayments; however you have to remember that you are only paying back the interest on the amount you are borrowing. This means that at the end of the term of the mortgage you will have to find the total sum left and pay it straight out. The majority of lenders will ask for proof that you have a plan in place to cover the balance. If you choose to take a capitol repayment loan then you will pay a little of the interest and the capitol. This means that at the end of the term of the mortgage you will have fully paid up the amount you borrowed. A specialist will be able to guide you through which could be best for your particular needs. The money they can save you when it comes to getting the cheapest rate is worth the fee. Sean Horton is a Director of Enhanced Wealth (http://www.enhancedwealth.co.uk), a whole of market mortgage broker and IFA specialising in mortgage advice and the associated areas of income protection, mortgage protection, mortgage life cover ]]> Get A Mortgage Loan http://www.artwoo.com/article/get-a-mortgage-loan http://www.artwoo.com/article/get-a-mortgage-loan#comments Mon, 10 Sep 2007 02:25:03 +0000 adverse credit mortgagemortgage loanself cert mortgagemortgage loansbuy to let mortgage100 mortgagepledge http://www.artwoo.com/article/get-a-mortgage-loan mortgage loan.

Let us clearly understand what is a mortgage loan and the different types of and their benefits to the borrower.

A mortgage loan is borrowing a sum of money. For this, the borrower gives an asset as a to the lender. The asset can be anything that has a substantial financial value such as a car, property, jewellary, equity shares, bonds, antique art or similar. The asset is evaluated for its worth. Then, in proportion to the asset value, the loan amount is given to the borrower. For this facility, as you repay the loan amount an interest is charged. So you need to repay loan amount plus interest. When you have completely and fully repaid the entire loan amount with interest (that is agreed upon mutually between lender and borrower), then the lender releases the collateral on the asset.

You can easily borrow anywhere from 70% up to even 100% of the value of the asset, depending on the type of mortgage loan you are looking for and the asset you are ready to pledge.

The various types of mortgage loan - Self cert. mortgage, , 100% mortgage, bad credit and loan and many others. Let us understand a few of these mortgage loans:

Even if you cannot document your income, but you have an asset to pledge, you are offered a self cert. mortgage loan. All those who are self-employed, freelancers, contractors, artists, non-main stream professionals usually cannot document their income on a regular basis. Hence, this loan suits them very well.

When you want to buy a property and do not have the money, even the down payment for it, to add to it, you do not even have any asset to pledge, then you can avail of a buy to let mortgage loan. In this type of mortgage loan, the lender company is paying for the property and keeping that same property as collateral, with the understanding that the property will be rented out. From that rental income that the property generates, the repayments towards the loan will be made.

If you suffer from a poor previous financial record such as bad or adverse credit, CCJ's, defaults, arrears, multiple debts, you can still very well get a mortgage loan. This kind of mortgage loan usually requires a credit check (irrespective of your credit rating) to give you a bad credit mortgage loan.

Mortgage loan attracts two types of interest rates =96 fixed and adjustable. When the borrower and creditor mutually decide upon a certain rate of interest to be charged through out the loan tenure, it is known as fixed rate of interest. Here, the main benefit is that the repayment amount towards the loan remains the same through out the loan period. This is also called fixed rate mortgage loan.

As the rate of interest keeps on changing, so does the interest on your mortgage loan. Thus, the repayment amount too changes. This is an adjustable rate. The main advantage in this rate type is that when the interest rates are low, the repayment amount also is reduced. In this way you actually end up saving some money. For more information and how to apply for mortgage loan, you can visit us online. Fred Mason can help you get the mortgage loan you need - fast! If you're looking for the best mortgage loan that you can get for your dream home, visit http://www.wizardloanapproval.com. ]]> How To Calculate Mortgage Payment Levels http://www.artwoo.com/article/how-to-calculate-mortgage-payment-levels http://www.artwoo.com/article/how-to-calculate-mortgage-payment-levels#comments Mon, 07 May 2007 10:25:00 +0000 calculate mortgage paymentinterest only mortgagemortgage payment calculationrepayment mortgageinterest mortgageinterest only mortgageshow much mortgage can i afford http://www.artwoo.com/article/how-to-calculate-mortgage-payment-levels
You can do this by performing a . There are certain considerations when you levels that suit you that you need to keep in mind: ? What type of mortgage should I get? What kind of loan payment schedule suits me best?

As always it is best to start at the beginning. How much mortgage can I afford: answering this question is easy - but you must be honest with yourself! Look at your earnings and savings and your expenses. How will these be affected by a mortgage? Some expenses like rent will disappear when you are a homeowner but a mortgage will bring other expenses (you may have removal costs and you'll almost certainly have legal costs). An online financial calculator will allow you work out exactly how much you can afford to commit to in a mortgage.

Now you must decide what kind of mortgage is best suited to your needs. There are various types of mortgage but don't let this put you off - the choice makes it easier to find a mortgage that suits you best.

The two most common types of mortgages for homeowners (commercial mortgage rates are applied to business premises) are s and s. You can also have a combination of the two.

With a repayment mortgage you pay off part of your mortgage every month but with an only the interest is paid off each month. When you consider what type suits you remember that an interest only mortgage rate (always calculate loan interest as well) will be considerably smaller. Although this will appear attractive you will need to be able to pay of the rest of the loan at the end of your loan payment schedule. You can do this by investing money - but poor investments will lead to a shortfall and you will need to take advice at how to invest money so that it grows with your mortgage.

When you have settled on a mortgage that suits you (you'll find a weekly mortgage calculator allows you to break your finances down better than a monthly breakdown) there are other still a few more things to consider. What are your mortgage closing costs? These might make the final amount you pay much higher - especially if you pay your mortgage offer quicker than the original loan payment schedule. Are you able to claim any discounts like small business tax deductions? What are the bank loan rates (an interest rate calculation will help you here)? You might also be affected by mortgage loan origination - check your mortgage provider is dealing with your mortgage themselves and not farming it out as this may increase the amount you pay. It is always best to shop around and find the best deal!

When you calculate mortgage payment levels that suit you should know what you can afford. After that it is easy to calculate a payment that is tailor made to suit you best. James Grantworth is the Marketing Director for Let Mortgages Limited providing Buy To Let Mortgages with minimum capital investment. For full details of our exclusive no money down Buy To Let Mortgage deals visit: http://www.letmortgages.com ]]> Ways to Make it Easier to Get Your Second Home Mortgage http://www.artwoo.com/article/ways-to-make-it-easier-to-get-your-second-home-mortgage http://www.artwoo.com/article/ways-to-make-it-easier-to-get-your-second-home-mortgage#comments Wed, 29 Oct 2008 13:15:26 +0000 credit crunchinterest elementmortgage repaymenthome mortgageoutgoingssubstantial depositbuy to let mortgage http://www.artwoo.com/article/ways-to-make-it-easier-to-get-your-second-home-mortgage
What's more, with house prices falling, this is a really good time to go for your second home. The only snag is that mortgages are harder to get. So how are you going to finance your second home?

Well, there are ways to make it easier to get your second .

• A second home mortgage is a mortgage on a property that is not your main residence. The lender will look at all your , and will look at any debts secured on your main residence, before deciding whether to grant the mortgage. If you have no mortgage on your main residence it will make it easier to get the second home mortgage -- you have a lot more security to offer.

• Even in these days of there are still a good supply of mortgages available for those who can put down a sizeable deposit -- i.e. who are looking for a low loan-to-value ratio mortgage. If you can release equity from your main home to provide a on your second home, you shouldn't have a problem getting your second home mortgage.

• If you plan to let out the house as a business and not to live in it yourself, you will have to apply for a different type of mortgage -- a or a holiday let mortgage. However, even if you do want to use it yourself, you may still want to let it out sometimes to help with the finances. If you do, you must ensure that this is permissible under the terms of the mortgage. But it does make sense, both to prevent it from standing empty for too long and to help you afford your second home mortgage. (Remember that tax is payable on rental income, at your normal tax rate, but the of your second home is deductible for tax purposes.)

• It will be easier to afford your second home mortgage if you go for an interest-only rather than a repayment mortgage. However you do need to have a clear plan for repaying the capital at the end of the mortgage term. These days you can't rely on the house having appreciated in value, so you can't count on selling it at a profit. Of course, if the idea is eventually to use it as your retirement home, you should be able to repay it through the sale of your main house.

There is no denying that mortgages of most kinds are harder to obtain at the moment. However, you can still obtain a second home mortgage provided the lender is satisfied there is minimum risk. The more you can demonstrate your ability to afford it, the easier you should find it to obtain a loan.Sean Horton is a Director of Enhanced Wealth who offer second home mortgages]]> Mortgage Protection Pays Your Monthly Mortgage Repayment http://www.artwoo.com/article/mortgage-protection-pays-your-monthly-mortgage-repayment http://www.artwoo.com/article/mortgage-protection-pays-your-monthly-mortgage-repayment#comments Mon, 08 Sep 2008 02:36:28 +0000 council of mortgage lendersmortgage repaymentsstreet lendersmortgage payment protectionaccident sickness and unemploymentmoney equivalentmortgage repayment http://www.artwoo.com/article/mortgage-protection-pays-your-monthly-mortgage-repayment money equivalent of the sum you insured against which would be your for the month. This would ensure that you would not be at risk of losing your home to the lender by way of repossession. You would be able to concentrate on making a recovery or finding work again.

The number of repossession is a big worry and the predict that just in 2008 there will be around 45,000 homeowners losing their home to repossession. Up to June there had already been over 18,000 repossessions and many of these could perhaps have been stopped if the homeowners had taken out mortgage protection. A policy does not have to cost a lot if you take it with a specialist in payment protection as opposed to having it added onto the borrowing.

If you have added onto the borrowing then it can work out very costly. You could find that it would boost up the cost of the mortgage considerably as high charge huge premiums for the protection. In the majority of cases very little information is given regarding the policy and the exclusions and in some cases in the past this has led to consumers buying cover they could not possibly hope to claim against. In the past mis-selling has occurred and fines have been handed out. However when bought with the exclusions in mind mortgage cover does the job it is supposed to do and is very valuable protection.

If you just miss on repayment on the mortgage then the lender will want to know how you plan to catch up on the missed payments. Also you would have to be able to maintain the . If you do not have an income coming in then it would be very hard to come to an agreement with the lender. If no agreement can be made then you are looking at the mortgage lender taking you to court and seeking possession of your home and have you evicted. With a policy behind you there would be no worry of this happening as you would be able to keep up with the repayments.

Mortgage protection pays out after a certain length of time of being unemployed or incapacitated. Normally this would be in the region of 30 to 90 days. Some providers will backdate the policy to the first day of your unemployment or incapacity but you have to check in the terms and conditions of the cover before taking it out. Once the policy has begun to provide you with an income it would then carry on doing do for the period set out in the terms and conditions.

Providers usually offer either 12 monthly payments or 24 and after this period of time the policy simply ceases. This is usually more than enough time to get back to work or in the case of unemployment to find work again.Simon Burgess is Managing Director of the award-winning British Insurance, a specialist provider of mortgage protection.]]>