| |
| |
|
Mortgage & Refinancing Information |
|
|
|
What is a Mortgage?
A mortgage is a loan, usually from a bank, finance company or building society to help you buy your home. A mortgage is a loan, from a bank or building society that is secured against your house or flat. You have to pay back everything you borrow from your lender within an agreed length of time (the mortgage term). You also have to pay interest on what you have borrowed. A mortgage is a loan you take out to buy property. Most banks and building societies offer mortgages, as well as specialist mortgage lending companies. To repay the mortgage you either make monthly repayments of interest and capital, or you pay interest only each month then repay the loan at the end of the mortgage term from separate savings or investments. The purpose of a mortgage is, quite simply, to enable a person to borrow money using the property as security. As the prices of houses are beyond the immediate personal resources of most purchasers, it is necessary to enter into a borrowing agreement with a lender. A mortgage is therefore a form of a secured loan, whereby the lender agrees to lend a person the money to enable them to purchase a property. This loan is secured against the property by a legal charge and is subject to the purchaser and the property being able to meet the lender's criteria. This loan is then paid back over a period of time along with the interest charged by the lender. In most cases lenders will offer three times a single person's salary or two-and-a-half times the borrowers' joint salaries. However you should consider whether your budget can afford the repayments before borrowing to the hilt. A mortgage is a long term financial commitment with repayments typically spread over a term of up to 25 years. However in practice, people often sell their house before the end of the mortgage period. The original loan is then repaid from the sale of the first house and a new loan is taken out to buy the new home. Each joint borrower is individually liable for the amount of the loan and interest due to the lender and is always responsible for the full amount outstanding. Events such as separation, divorce, unemployment, long term sickness, injury or disability could ultimately cause a house to be sold and the mortgage to be terminated. The early repayment of a loan can have different financial consequences depending on the type of mortgage involved. Most mortgage lenders also require you to have a suitable life assurance policy, which would repay the borrowing in the event of death or critical illness. This ensures that, in these distressing circumstances, your house would not have to be sold to repay the mortgage. You may find the perfect mortgage for you at your local building society. But shopping around could land you with a much better deal or alternatively you can use a mortgage broker. Mortgage brokers scour the market to find the most suitable deal for you. A good mortgage broker can save you time and money. If you are in full-time employment the lender will ask for written evidence for example, payslips and your P60 for the past two years. They'll also probably write to your employer asking for confirmation. If you're self-employed it more difficult to get a mortgage and as a result there are lenders who specialise in the self-employed. You would need to show three years audited accounts. If you haven't been in business long enough then the lender should accept a letter of confirmation from your accountant. You may freely reprint this article provided the author's biography remains intact: About The Author
MORE RESOURCES:
Mortgage-Refinance - Google News |
|
|
|
RELATED ARTICLES
California Refinance - Refinancing in California The real estate market in California is booming. Home values continue to appreciate almost on a daily basis. New Home Loan - 3 Tips To Speed Up The Mortgage Loan Approval Process Imagine this: you've found the perfect house, and feel lucky because the interest rates happen to be at an all time low. So you submit your mortgage loan application, and then?wait. Who Could Benefit From A Reverse Mortgage? What is a "Reverse Mortgage?"Also known as a Home Equity Conversion Mortgage (HECM)a reverse mortgage,is a popular way older homeowners (62+) can convert part of the equity in their homes into tax-free income without having to sell the home, give up title, or take on a new monthly mortgage payments.Before explaining a reverse mortgage, let's review the features of a Standard Mortgage:With a standard loan or mortgage, your income stream is used to 'qualify' for the mortgage or loan. Interest-only Equity Loans Create Amazing Power and are Quite Easy to Get The power of home equity and interest-only payments, provided from most home equity loans is amazing. You can get a home equity loan, with no closing costs and pay as little as $30. Understanding a UK Commercial Mortgage In many ways a commercial mortgage is just like a residential mortgage in that you pledge real property as collateral against a loan to either buy or refinance that property. You can also receive a commercial re-mortgage and use it as a line of credit for any business purpose. Financing the Purchase of Foreclosed Homes Homes that have been foreclosed can be one of the most economical ways to get into a nice home without having to pay exorbitant costs. It's also a great way to get in on the real estate investment game as a beginner. Adverse Credit Mortgage Loan - Persistence is the Key to Getting Approved People with bad credit that are looking to get a home mortgage loan or to refinance their existing home mortgage loan, know how difficult of a job it can be to try and get approved. Adverse credit history can mean a little more legwork to get an approval for a mortgage loan, and especially to get a decent interest rate. 2nd Mortgage - Better Than Refinancing You have probably received refinancing offers in the mail or advertised online touting your ability to pull out your home's equity. But a 2nd mortgage, also called an equity loan, may be a better financing option than refinancing your mortgage. Recent Bankruptcy? Its Not Impossible to Obtain a Home Loan Because the new bankruptcy laws go into effect on October 17, 2005, more Americans than ever are filing for relief using the federal bankruptcy laws. The vast majority are simply overextended and cannot possibly repay the obligations they have open. The Truth About Shopping for Mortgage Rates With so much lender advertising focusing just on rates, you may not be aware of the importance in choosing an experienced, reliable loan professional who can match you with the appropriate loan program. Good loan officers and mortgage brokers may quote today's rate when asked, but they will quickly add they need to know more about you to determine the best program for your individual situation. Doing a California Refinance Online Californians are passionate people. I know. Choosing a Mortgage Lender Just as there are many types of mortgages and mortgage deals to choose from, there are also many sources where you can go to get a mortgage. Your key choices are to use a mortgage broker, a more general financial adviser, or shop around yourself and go direct to the mortgage lender. Zero Down Mortgage Loans - Is 100% Financing a Good Idea and Can You Get Approved? Are you wondering if you can get approved for a home loan with 100% financing? Are you also wondering if its a good idea to get a mortgage loan with no money down? Here are some points to keep in mind as you apply and consider your different mortgage loan options.To qualify for 100% financing on a purchase mortgage loan, it would be important for you to have a credit score of at least 600 or higher. Secured Homeowners Loans - In Case You Thought a Home is Worth Few Dollars Money is like music, if managed well, produces a good symphony. One wrong note - one wrong decision - it produces a jarring sound. Say Yes to ISA Mortgages for a Convenient Mortgage Repayment Customers who opt for an interest only mortgage, and feel themselves fortunate at the extraordinarily low monthly installments, wake up. The mortgage may be fast approaching its repayment. Adjustable Rate Mortgages - Understand the Benefits Compared to a Fixed Rate Mortgage Adjustable rate mortgages can be very tempting to home buyers, yet they carry a great deal of uncertainty. Fixed rate mortgages offer rate and payment security, but they are more expensive. Homeowner Loans - Whats Available? It isn't difficult to get a homeowner loan if you own your own home, hundreds of UK lenders will lend up to 95% Loan to Value of your property and some as much as 125% Loan to Value if you find you have little or no equity at all.Homeowner loans are available to those that own or pay a mortgage on their house, bungalow, flat or cottage. 6 Helpful Mortgage Tips Here are some mortgage tips that can help you obtain a mortgage with less hassle, and at a lower overall cost: Determine how much home you can afford. Based on your income and any long term debt, know the maximum payments you can be certain of making comfortably. What is a Self-Certification Mortgage? A Self-Certification mortgage is a mortgage designed for people who are unable to provide proof of income. This type of mortgage was originally designed for the self employed who historically experienced difficulty obtaining a loan with 'high street' lenders due to not having audited accounts available. Short-Term Interest Rates on the Rise; Adjustable Rate Mortgage Holders Prepare for Increase in Rate Interest rates are on the rise and many home owners who have adjustable rate mortgages may see increases in their forthcoming annual adjustments.Federal Reserve Chairman Alan Greenspan made it clear in 2004 that the Federal Reserve would be increasing short-term interest rates at a "measured pace.
|
| home | site map |
| © 2006 |
