year mortgage http://www.artwoo.com Returned search results for year mortgage Copyright 2008 Wed, 03 Dec 2008 18:10:38 +0000 http://www.artwoo.com/rss/year+mortgage The New 50 Year Mortgage 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 of being able to spread out your 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 by storm the 50 year mortgage is leaving many people speechless.

But, is a half 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 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 ]]> Who Wants Low Mortgage Rates? http://www.artwoo.com/article/who-wants-low-mortgage-rates http://www.artwoo.com/article/who-wants-low-mortgage-rates#comments Sat, 29 Apr 2006 00:50:03 +0000 refinance mortgagemortgage ratesmortgage refinancemortgage ratemortgage corporationeloangeorgia http://www.artwoo.com/article/who-wants-low-mortgage-rates s? A low mortgage rate means spending on monthly payments during the course of a mortgage. A low mortgage rate can save homebuyers like you several thousands of dollars. A low mortgage rate means having more funds to spend on investments that might prove profitable.

Despite the reported increase of previously low mortgage rates, rates today are still low enough to consider a for your home. The Internet provides you with the perfect portal to start applying for those low mortgage rates. Below is a list of websites where you can apply for low mortgage rates.

Low Mortgage Rates at Interest .com

Interest.com offers you an opportunity to compare rates of several lending companies in your state so you can have a better chance at getting a low mortgage rate. For instance, you want to apply for a low mortgage rate on a 30-year fixed rate in . The amount you wish to borrow is $100,000 with no discount points and a standard loan type. After clicking on the search button, the page will display the low mortgage rates of several lending companies in Georgia, including Sterling Home whose low mortgage rate is 5.375%. There are several other lending companies that offer low mortgage rates and all you have to do is choose the one offering the lowest rate.

The Low Mortgage Rates of MortgageRatesUSA .com

Mortgage Rates USA is yet another company that offers choices and options for costumers who are on the look out for low mortgage rates. Their online low mortgage rate quote request is free and secure. The information you provide so the website could generate your low mortgage rate quote request is only shared with the lender and not with any third party.

The Low Mortgage Rates of .com

E-Loan is one of the top lending companies offering low mortgage rates. The reason for their low mortgage rates is that they do not charge you with any lender fees or any other hidden costs which is the main culprit to an increased mortgage rate. For example, a 5-year adjustable rate mortgage with E-Loan has a low mortgage rate of 4.625% and an APR of 5.078%.

How to take advantage of low mortgage rates

Refinancing is something that all homebuyer should consider when the market offers low mortgage rates. When you refinance, you take advantage of low mortgage rates by paying off your first mortgage with a new mortgage with low mortgage rates. This move can help you lower down your monthly payments and save on your overall interest bill.

For example, you have a year into a $150,000 loan for 30 years. The interest rate is 8.5 per cent and fixed for the duration of the loan period. You can refinance your first loan with a new 30-year loan with a low mortgage rate of 7 per cent. By doing this, you can cut down on your monthly payment by $155 to $998. The low mortgage rate of the new loan can also help you reduce your overall interest bill by $42,200 to $223,000. To find the best resources for a 2nd mortgage the author provides a website with detailed infos and resources at: http://www.2nd-mortgage.com-internet-online.com ]]> 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. ]]> Few Advantages Of Second Mortgage http://www.artwoo.com/article/few-advantages-of-second-mortgage http://www.artwoo.com/article/few-advantages-of-second-mortgage#comments Tue, 29 Apr 2008 02:17:45 +0000 second mortgagekim leesecond mortgagesinformation checktax deductionpros and conscollateral http://www.artwoo.com/article/few-advantages-of-second-mortgage second mortgage is the right option,you need to move forward with the process of getting the money. Remember, a second mortgage is not the right option for everybody. Even if you need some money, there are other types of loans that you can avail. But there are thousands of people who take each year and many of them love the decision that they have made. The thing that you want to do is make sure that your decision is the right one.

Here are a couple of reasons that a second mortgage may be right for you.

1. If you need money right away, you can consider second mortgage. Since this type of loan is based on your home's equity, you will get the funds right away. Remember, since a second mortgage is based on your home's equity you are putting it as . If you do not pay back your loan on time you may end up losing your home.

2. The interest that you pay on a second mortgage is usually tax deductible. For this reason, you may definitely consider a second mortgage if you are in need of immediate money. After all, any that you can get is a good one. Eventhough this is not reason enough for a second mortgage, it is a benefit that you will always want to keep in mind.

There is no way of saying for sure if a second mortgage is right for you. It may be the perfect way for you to get the money .You have to analyze the . Once you have done this, you will be well on your way to either deciding about securing a second mortgage or putting it off for a bit. But either way, knowing the details is the best way to know if a second mortgage is right for you.

For more http://www.rentinsingapore.com writes for Singapore's Rental Portal http://www.rentinsingapore.com ]]> Mortgage Cycling Versus Bi-weekly Mortgages 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 .

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 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 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 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 ]]> Mortgage Calculator Uses http://www.artwoo.com/article/mortgage-calculator-uses http://www.artwoo.com/article/mortgage-calculator-uses#comments Fri, 02 Jun 2006 12:32:15 +0000 fixed rate mortgagemortgage calculatormortgage calculatorsadjustable rate mortgagemortgage interest ratefixed rate mortgagesaprs http://www.artwoo.com/article/mortgage-calculator-uses Mortgage calculators are pivotal factors when you're looking for the right mortgage that best suits your home buying needs. Below is a short list of to help you make your financial decision.

APR Mortgage Calculator

An APR mortgage calculator helps you calculate and compare the or Annual Percentage Rates of different types of mortgage loans. To use an APR mortgage calculator, you need to fill in the loan amount and the quoted interest rate. Say for example, you take in a 30-year loan for $20,000 at 4.5% interest rate. Percentage of discount points is 2.0% with a closing fee of $1,000. When you calculate this using the APR mortgage calculator, you'll find that the annual interest rate of this loan is 5.5275%.

ARM vs. Fixed Mortgage Calculator

Different financial situations require different types of mortgage. An is good when the loan term that you want is short. On the other hand, s might give you the certainty that you need when it looks like interest rates are rising. Use ARM vs. fixed rate mortgage calculators to find out which mortgage suits you. An ARM vs. fixed rate mortgage calculator would require you to fill in the details both mortgages. Once done, the mortgage calculator will help you determine how much you can save with either mortgage types.

For example, you decide to take out a loan of $105,000 payable in 30 years. The fixed rate is 7.5% while the ARM interest rate is 4% with an adjustable period of one year. Maximum cap period of the ARM loan is 0.5% while the lifetime cap is 4%. Once you put in these details into the mortgage calculator, you can start estimating your savings on each mortgage. The mortgage calculator will show you that with a fixed rate loan, you will be paying $734.18 monthly and no savings. On the one hand, the mortgage calculator will also show you that ARM loan will have you paying up to $663.67 monthly with cumulative savings up to $11,024.46.

Comparison Mortgage Calculators

As the name itself suggests, this mortgage calculator allows you to compare several mortgage types and find out what suits you best. You can put in variables to as much as four loans into this mortgage calculator and start comparing prices. By providing the number of payments to be made, interest rates, and principal amount, this mortgage calculator will calculate for you the projected monthly payment.

30 Year and 15 Year Mortgage Calculator

This mortgage calculator will help you decide which mortgage suits your needs -- 30 year or a 15 year term. For instance, you're considering a $100,000 loan. For 15 years, the interest rate is 6.250%. For a 30-year term, the interest will increase slightly to 6.500%. Discount points for each are equal at 1%.

For more accurate results on this mortgage calculator, let's put in a state/federal tax rate of 38%, property tax amount of $2,000, homeowner's insurance of $600, and savings rate of 4%. The purchase price of the home is $125,000. The result generated by the mortgage calculator will be a total payment of $1,074 for the 15-year term and $849 for the 30-year term. 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. ]]> Achieving Financial Freedom: Refinance To A 15 Year Mortgage http://www.artwoo.com/article/achieving-financial-freedom-refinance-to-a-15-year-mortgage http://www.artwoo.com/article/achieving-financial-freedom-refinance-to-a-15-year-mortgage#comments Tue, 19 Sep 2006 20:27:03 +0000 http://www.artwoo.com/article/achieving-financial-freedom-refinance-to-a-15-year-mortgage Interest rates are rising. News reports tell of increasing home sales and mortgage foreclosures. You're financially stable, but are keeping an eye on interest rates. A great way to save money on interest is to refinance to a 15 year mortgage. Of course, your payments will be higher, but in the long run, you will a considerable amount of money on interest. .

Loan Term Determines Interest Savings

If you've had your home for a few years, and want to refinance a 15 year fixed rate mortgage can give you peace of mind along wit significant savings. Your loan will be fully amortized, and the interest rate will not be subject to adjustment. Your principal and interest payment (P andamp; I) will be consistent. Here's an example of how much you can save by converting from a 30 year mortgage to a 15 year mortgage.

Let's say you've got a 30 year mortgage at 6.00%. Your original mortgage amount was $300,000. You want to refinance for the original amount to pay off lingering credit card and consumer debt, and are considering a 15 year mortgage loan. Your payments on the 15 year loan will be $2531.57, a difference of $732.92. Sure, that is a much higher payment, but depending on the amount of debt you refinance, you will have some extra cash available to meet the payments. Before you decide that the payments are too high, consider that you will save approximately $209,293 in interest compared to a 30 year loan at the same rate!

Refinancing: Part of the Big Picture

Everyone has a unique financial situation, goals, and priorities. If you're considering a mortgage refinance, it's wise to consider your entire financial situation including debts, anticipated needs, savings for college and retirement, and your present and future income. Consult your financial advisor to develop a plan that meets your needs now and in the future. Refinancing to a 15 year mortgage can be part of your overall financial plan. Karen Lawson is a freelance writer with more than fifteen years of experience in mortgage banking. She holds a Master's degree in English from the University of Nevada, Reno. Karen is a columnist for http://www.loanpage.com ]]> The Benefits Of A Fixed Rate Mortgage 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 and a .

There are many benefits in a fixed rate mortgage:

The primary difference between the two is that the 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 .

• 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 . 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 ]]> Want A Fixed Rate Mortgage That Will Save You Thousands On Mortgage Interest? http://www.artwoo.com/article/want-a-fixed-rate-mortgage-that-will-save-you-thousands-on-mortgage-interest http://www.artwoo.com/article/want-a-fixed-rate-mortgage-that-will-save-you-thousands-on-mortgage-interest#comments Thu, 18 Sep 2008 17:50:27 +0000 fixed rate mortgagemortgage reduction programfixed rate mortgagesadjustable rate mortgagesfixed rate mortgage loanyear fixed rate mortgageadjustable rate mortgage http://www.artwoo.com/article/want-a-fixed-rate-mortgage-that-will-save-you-thousands-on-mortgage-interest fixed rate mortgage program that will not only save you thousands of dollars, but tens of thousands of dollars on a mortgage loan? Read on.......

I am not referring to a 15 year mortgage, nor am I talking about a bi-weekly or some type of . Yes if you can afford the payments the come with a 15 year loan, the by all means go for it. It will not only get you out of mortgage debt faster, but will save you thousands of dollars in interest charges and help you accumulate wealth sooner, as you enjoy the benefits of you home appreciating in value.

have always been my recommendation to first time home buyers, because they are less risky than s. One of the main causes of foreclosure is an adjustable rate mortgage, which has adjusted on a home owner to the point where the mortgage payment is no longer affordable. The most common fixed rate mortgage is the 15 year or 30 year . But this doesn't mean there aren't other options, did you know that you can also get a 20 or even a 25 year loan. The loan program I want to focus on today is the 25 year mortgage.

The first reason is the 25 year loan comes with the same interest rate as a 30 year loan, as well as the payment difference is minimal which will allow you similar payment relief as the 30 year loan, but saving you thousands in interest charges. Illustration below for a $200,000 mortgage loan:

Many of my competitors usually don't mention this 25-year option because of two reasons first, they usually don't know this loan option exist and secondly, they lose the interest payments over the life of the loan.

For example, on a $200,000, the rate is the same whether you go with a 25 year or 30 year mortgage loan and the payment would be about $86 higher per month with the 25 year loan, but over the life of the loan, you will save over $49,000. Now I am sure you could find a few things to do with an extra $49,000.

The $86 per month is less than one dinner out, per month for a family of 4! Does that type of mortgage interest you?
Even if you plan on staying in the home short term, for let say only 5 years, you will save about $1000 in interest charges but because of the additional $86 per month, you would have paid well over $6000 towards your principal balance when calculated over the 5 year period.

This is the reason why it is important to work with a mortgage expert that has your best interest in mind, especially if you're a first time home buyer. And experience mortgage expert can guide you through the entire loan process, which will in turn save you a lot of headaches and money. And since this is such a large transaction we are not talking about chump change, we are talking about thousands of dollars that could otherwise be used to build wealth.Marlon Baugh is a nationally-known mortgage expert. Since 2003, he has specialized in mortgage loans for people with Bankruptcies, Foreclosure or with other credit issues, as well as Commercial Mortgages. If you would like a Free Copy or to get instant access to the remainder of this Insider Mortgage Report, please visit http://www.specializedfinancialsolutions.com/own-a-home.htm or Call 954-678-5796]]> How Does A Balloon Mortgage Work? http://www.artwoo.com/article/how-does-a-balloon-mortgage-work http://www.artwoo.com/article/how-does-a-balloon-mortgage-work#comments Wed, 21 Mar 2007 12:24:00 +0000 fixed rate mortgageballoon mortgageadjustable rate mortgagemortgage possibilitiesmortgage coststraditional mortgageballoon mortgages http://www.artwoo.com/article/how-does-a-balloon-mortgage-work mortgage possibilities are available, but a may be the thing that you need to get moved in. Here are some things you need to know about that will enable you to decide if this type of mortgage can help you.

A balloon mortgage is taken out for a 30-year period, like an ordinary mortgage, but paid back much sooner. These are often paid back in 5 or 7 years, but recently a 15-year option has become rather popular. At the end of this period of time, the mortgage becomes fully due - it must be paid off. Since most people cannot pay it off because the balance is still quite large, there is a guaranteed option of refinancing - at the market rate at the time.

This makes a balloon mortgage in some ways both like a and an (ARM). It is like a fixed rate mortgage in that it has a fixed payment over a certain period of time. On the other hand, a balloon mortgage is like an ARM because the guaranteed level of interest goes to an unknown rate - to whatever the interest rate is when you refinance.

The monthly payment for a balloon mortgage is like the payment for a fixed rate mortgage because it is based on the whole period of the loan - for 30 years. All balloon mortgages are calculated on a 30-year time frame. The difference being that the full payment is due earlier.

The advantage of getting a balloon mortgage is that it enables you to get lower than traditional . Your payment will usually be a little less than if you had a regular mortgage. This also means two things, though. First, it means that you are not paying much more than interest in the brief time span of the loan; and this also means that you really are not building up much equity on the home during that time.

At the end of the specified time period, whether 5, 7, 15 years, or some other arrangement, you must pay off the balance of the mortgage. A balloon mortgage will be of more value to you if you are intending to sell the house before the balloon payment is due, or, plan to refinance. Refinancing, of course, means that you are forced to take a risk on whatever the new interest rates are at the time -- could be good or bad. There will be, in the initial contract, terms under which such a contract can be refinanced. This may be, however, non-negotiable. Which means, simply, that you are better off refinancing through another lending agency - in most cases.

A balloon mortgage works well with someone who knows that they may not be staying in an area for a long period of time. Another possibility is if you know you can take the balance of your lower payment, reinvest it in higher interest yielding products, and then pay off the balloon mortgage at the end of the term. Joe Kenny writes for the UK personal finance sites http://www.ukpersonalloanstore.co.uk and also http://www.cardguide.co.uk ]]> Advantages And Disadvantages Of A Reverse Mortgage http://www.artwoo.com/article/advantages-and-disadvantages-of-a-reverse-mortgage http://www.artwoo.com/article/advantages-and-disadvantages-of-a-reverse-mortgage#comments Wed, 27 Sep 2006 06:27:08 +0000 reverse mortgagemortgage fundsstandard mortgagetraditional mortgageexisting mortgagehttpheirs http://www.artwoo.com/article/advantages-and-disadvantages-of-a-reverse-mortgage reverse mortgage. It allows you to get the money you need to live on, pay medical expenses, or what ever need you happen to have. You don't have to qualify your need or your credit to obtain a reverse mortgage. They are easy to obtain and fast to close. It's no wonder they are so popular for a lot of older folks.

However there are a few disadvantages which are worth taking a look at.

are left with a mortgage to pay off.

When you permanently leave your home because you move or die, the home will have to be sold to pay off the mortgage. The mortgage will be due in a lump sum. This leaves the task of selling your home to pay off the mortgage to your heirs. If they decide to keep the home, it is possible if they begin payments on the mortgage within one year of it coming due.

A reverse mortgage has hefty fees.

The fees for a reverse mortgage are more costly than the fees for a . An additional 2 percent is added for insurance and another 2 percent is added to the origination fees. Closing costs are added as well so a $200,000 reverse mortgage could potentially have $10,000 worth of fees added to it and they must be paid first before the funds are dispersed.

must be paid of with dispersed funds.

If a exists on the home when you obtain your reverse mortgage, you will need to pay off in full with your reverse or your personal funds.

A reverse mortgage can be ideal under the proper circumstances. It is important to discuss the loan particulars with several lenders to compare terms and to also discuss the situation with your heirs so everyone is aware of what is going on. Geoff Spencer is a staff writer at http://www.finance-journal.com and is an occasional contributor to several other websites, including http://www.onlinebusinessgazette.com. ]]> The Benefits Of An Interest Only Mortgage 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 .

With an interest only mortgage, your scheduled monthly payments are interest only. This means that for a certain 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 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 to finance their down payment often use the interest only mortgage as their primary mortgage since second mortgages usually have a higher . 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/ ]]> 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 ]]> Understanding Second Mortgage http://www.artwoo.com/article/understanding-second-mortgage http://www.artwoo.com/article/understanding-second-mortgage#comments Tue, 11 Sep 2007 09:35:00 +0000 second mortgagefirst mortgagefact that therethis means thatfinancially stablesecond mortgagesreal estate http://www.artwoo.com/article/understanding-second-mortgage second mortgage is not as difficult as you think. Generally speaking, a second mortgage is exactly what it sounds like. This is a loan that is taken on a home or property that already has a . Second Mortgage will get you into a lot of debt.But a second mortgage is something that lot of people prefer. Many people have no idea that whether they can get a second mortgage on their home or another piece of property that they own. But in , a home can have more than one loan against it.

The main issue with this is that the lender expects you to pay the money back over time. if you cannot afford to pay your first mortgage, there is no way that you can handle another one. Sometimes getting a second mortgage can be advantageous. It is important to know exactly what you are getting yourself into before moving forward with this process.

The loan on real estate that is registered first is known as the first mortgage. And obviously, the one that you register second is known as the second mortgage. It is hard to believe the fact that, there are even people who have third and fourth mortgages on their home. While this is not a common occurrence, there are many people who have done this. But it is advisable to stick to one mortgage or only two if you must.

You should also know that a second mortgage is known as subordinate. The reason for this is quite simple. If this loan goes into default, the first mortgage that was taken on the home will get priority. In other words, it will be paid off first. So as you can see, are much more risky for a lender. In order to cover themselves, they usually charge a much higher interest rate on a second mortgage. A second mortgage may be right option for you if you need some cash and feel that you will be able to pay back both loans without any problems. But if you are not , stay away from a second mortgage until you get things under control.

For more Information check http://www.rentinsingapore.com Kim Lee writes for Singapore's Rental Portal http://www.rentinsingapore.com ]]> 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 ]]> Loan : Most Important Decisions http://www.artwoo.com/article/loan-most-important-decisions http://www.artwoo.com/article/loan-most-important-decisions#comments Thu, 06 Sep 2007 05:25:01 +0000 fixed rate mortgage30 year fixed rate mortgage30 year fixed mortgageyear fixed rate mortgage30 year mortgage15 year mortgagemortgage amount http://www.artwoo.com/article/loan-most-important-decisions
Perhaps one of the most important decisions to make about your loan will be whether you want to pay for 15 or 30 years. Statistically, the has found the most favor amongst borrowers. The 30 year allows borrowers to borrow more money as well as lower their monthly payment over a 15 year loan. After considering the amount that a borrower can pay monthly for PITI (Principal, Interest, Tax, and Insurance), it may be advantageous for the borrower to obtain a in order to secure a lower monthly payment. For example, with a 30 year fixed rate of $250,000, and an interest rate of 6.5%, a borrower could expect to have a monthly payment around $1,580. The payment for a at the lesser rate of 5.9% would be $2,096 per month. The lower payment is obviously more attractive to the majority of borrowers.

There are, however, more factors to consider than just your monthly payment. With the help of a knowledgeable lender, you should carefully evaluate the following differences between the 15 and 30 year loan.

1. The higher cost of a 30 year loan. While it may have a lower monthly payment, the interest has 15 more years to work its magic on your loan. The cost savings in interests of a 15 year loan over a 30 year loan can be staggering. A buyer over years can expect to pay for their house in interest over three times!

2. The equity that you will have in your home during the course of each loan's term. A 15 year loan will have a quicker equity build-up than a 30 year loan.

3. The extra $516/month in our example above. In the case of a , you would have an extra $516/month. With a wise investment strategy, it's important to consider the present value of that money and if it could be leveraged for other investments. Lauren Armstrong is an industry professional and expert author at http://Smartloanstart.com. Shop for a loan, compare rates, and get instant approval online with our recommended lenders and services at http://www.smartloanstart.com ]]> The Elements Of A Mortgage http://www.artwoo.com/article/the-elements-of-a-mortgage http://www.artwoo.com/article/the-elements-of-a-mortgage#comments Thu, 27 Dec 2007 23:29:59 +0000 first time buyertime home buyersfirst time home buyersmortgage brokersfinancial futurefirst time homehavoc http://www.artwoo.com/article/the-elements-of-a-mortgage time home buyers have heard this word, but simply dont really know anything about it. The word is: mortgage. As a , you really need to understand what a mortgage is before you can even attempt to buy a home. Far too many people lose their homes because they really dont understand what a mortgage is. Being too young, too immature, or too irresponsible can wreck on your if you try to take out a mortgage. Being ready and mature enough to handle a mortgage is a big deal and one that should not be taken lightly. Thus, it is vital to understand the elements of a mortgage before getting one for yourself.

A mortgage is composed of three basic parts, the sum, the interest, and the term. Sounds simple right Well it actually could not be any simpler than that. Let us dive a little deeper to see what each of these actually mean for you the buyer.

The sum of the loan is how much it is worth. This number can range greatly depending on the amount that you require. It is important not to go too high over the amount you will need for the home. Many will help you determine the size that is needed in order for you to purchase the home without going too far over your budget.

A mortgage is like any other loan you must make a monthly payment on the interest. This amount will be different depending on the lender you choose to go through. Be sure to shop around with different lenders to find out which offers the lowest interest rates to insure proper payment. If you do not make this monthly payment on time, it could result in loosing your home.

Every mortgage has an allotted amount of time in which you are to pay back the loan. This amount of time is referred to as a term. Typically loans are offered in two terms, 15-year and 30-year terms. If you choose a 30-year term, your monthly payments will be lower because you are paying the loan off over a longer period of time. A 15-year term would mean that you are making higher payments. It would seem that picking a 30-year term would be popular because you wouldnt have to pay that much monthly. While you are paying lower rates each month, you will be paying more interest throughout the life of the loan. The 15-year term will be a little easier in the long run because you are paying the interest and not building up any principal.

The most important tool to understanding how a mortgage will affect you is to have a good mortgage broker who is willing to explain things to you. Let them know whenever you have questions and never be afraid to ask anything that may seem simple. Aside from money issues, many people lose their homes due to the fact that they did not understand the mortgage and they never asked any questions to their mortgage broker. James Copper is a writer for http://www.any-loans.co.uk ]]> The Facts About Home Mortgage Insurance Online 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 , 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 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 about ways to avoid home mortgage insurance. You may be eligible for special kinds of that actually pay the home mortgage for you. Of course, this will make your 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 ]]> Bad Credit Home Loan Mortgage Services - What To Consider When Applying For A Mortgage http://www.artwoo.com/article/bad-credit-home-loan-mortgage-services-what-to-consider-when-applying-for-a-mortgage http://www.artwoo.com/article/bad-credit-home-loan-mortgage-services-what-to-consider-when-applying-for-a-mortgage#comments Mon, 07 Aug 2006 18:27:06 +0000 mortgage lendersmortgage interest ratemortgage loanscurrent mortgage ratesmortgage paymentsmortgage loanmortgage term http://www.artwoo.com/article/bad-credit-home-loan-mortgage-services-what-to-consider-when-applying-for-a-mortgage s work. Because of this, several people accept bad loans. This results in homebuyers paying more than necessary. If you have bad credit, accepting a mortgage with good terms is a must. Many lenders prey on those with bad credit. Their objective is to charge higher fees and boost their profit. Before applying for a mortgage loan, consider the following factors.

What is the ?

The interest rate that a homebuyer accepts on a mortgage loan is very important. Mortgage rates can be as low as 3.9%, and as high as 9% or 10%. Obviously, those with a high credit rating will pay less interest.

Having bad credit does not always mean getting the highest rates. Thus, it is important to research various lenders, and keep an open eye on . Many lenders have wonderful loan programs designed for bad credit people. The rates are reasonable, which means affordable . Which Mortgage Loan Term to Choose?

Because of the varying home loans available, homebuyers have several choices in regards to loan terms. If you are hoping to payoff the mortgage quicker, a 15-year or 20-year may be suitable. These terms do involve slightly higher payments. However, if you can afford a higher mortgage, a shorter term is ideal.

Traditional mortgage loan terms are 30-years. However, many lenders also offer 40-year mortgage loans. This is a plus in areas with a high cost of living. Keep in mind that shorter terms have lower mortgage rates. Thus, homebuyers save money when selecting a shorter mortgage term.

Be Prepared to Pay Closing Costs

Getting approved for a mortgage loan and shopping for a home is the fun part. However, before the loan is finalized, homebuyers must pay their closing fees.

All mortgages involve closing costs. The fee varies depending on . Yet, you can expect to pay a few thousand dollars. This covers the cost of title search, appraisal, home inspection, points, loan origination, and so forth.

If a homebuyer is unable to pay such a large amount, having the closing fees included in the mortgage loan is doable. In fact, many homebuyers choose this option. This approach makes it possible to buy a new home without additional expenses. Go to http://www.abcloanguide.com/badcreditmortgage.shtml for more information on Buying a Home With Bad Credit. ]]> Offset Mortgage Providers Are On The Increase http://www.artwoo.com/article/offset-mortgage-providers-are-on-the-increase http://www.artwoo.com/article/offset-mortgage-providers-are-on-the-increase#comments Mon, 04 Feb 2008 19:30:00 +0000 independent mortgage brokermortgage providersmortgage dealmortgage providersecured lendingshoe leatherloan value http://www.artwoo.com/article/offset-mortgage-providers-are-on-the-increase s are increasing in number, and it is predicted that offset mortgages will account for 30% of all UK by 2009.

What are offset mortgages?

Offset mortgages allow homeowners to link the balance on a savings and current account with their mortgage, while still allowing instant access to their money. The amount in the savings and current account is calculated on a monthly or daily basis and used to reduce or `offset' the interest payments due on the mortgage. For example: your mortgage might be =A3200,000, but you have =A320,000 in your savings account and =A33,000 in your current account. This means you will only pay interest on =A3177,000.

Choosing the best offset mortgage

There are over 30 offset mortgage providers in the UK market and about 250 offset products in the market =96 but with so many to choose from, how do you choose the best offset for you?

You could traipse up and down the high street visiting all the banks and building societies, and obtain the latest information on their offset mortgages. Or you could save your and consult an . They will calculate whether an offset mortgage is suitable for you. They have the latest deals from offset mortgage providers at their fingertips, and they will help clarify which is the best offset mortgage deal for you, as each lender is different. For example: two offset mortgage providers offer different deals on a mortgage of =A3150,000. One offers a two- year fixed rate at 5.29% and the other one offers a two-year fixed rate at 6.33%. On face value the offset mortgage provider offering 5.29% looks the better deal, however the fee for the mortgage is 2.5% of the which totals =A34,249. The fee on the 6.33% deal is =A399. A borrower opting for the 5.29% offset mortgage deal would pay =A31,430 more than the 6.33% borrower.

Who could benefit from an offset mortgage?

Self-employed people: the self-employed are often paid without any tax deduction. They save their money over the year in preparation of their tax bill and an offset mortgage offers them a handy way to obtain maximum benefit from their money, but still have it available when the tax bill is due. A Regulated Mortgage Survey (RMS) revealed 21% of offset borrowers in 2006 were self-employed, compared to 16% of non-offset borrowers. For the self-employed some offset mortgage providers combine their self cert products with offset features.

Savers: A general guide is about 10% of the value of the mortgage in savings. However in some cases, savers only need about 5% of the mortgage debt in savings to make the offset deal worthwhile.

Higher-rate taxpayers: Higher-rate tax payers lose 40% of any interest earnt on savings accounts to the taxman. With an offset mortgage no interest is paid on accounts linked to an offset, so there isn't any tax to pay. Some offset mortgage providers allow ISAs to be linked to an offset mortgage. Although savers do not receive any interest, they avoid forfeiting their right to save up to =A33,000 in an ISA per year. Once the mortgage has been paid for, then they start receiving interest on the ISA. Some borrowers have managed a 0% mortgage because they have enough in their ISAs, savings and current account, to offset their whole mortgage.

Conclusion

Offset mortgages are increasing in popularity as more borrowers recognize the benefits an offset mortgage offers them. More offset mortgage providers are entering the market, which is good for the borrower as it offers more choice, however, without the advice from an independent mortgage broker, it can be difficult to choose the best offset mortgage deal. For more information, visit http://www.offsetmortgagecentre.co.uk/offset-mortgage-providers.html ]]>