| |
| |
|
Mortgage & Refinancing Information |
|
|
|
Guide to Mortgages
A mortgage is a loan that is guaranteed by a property. At its most simple that means, if you can't pay back your loan the lender can force you to sell your home so they can get their money back. Typically you can borrow three to three and a half times your income, or two and a half to three times the joint income of you and your partner. These are known as income multiples. The amount you can borrow will also depend on the value of your home. Most lenders will allow you to borrow up to 95% of the value of a property. The loan rate is set by the lender, and is called the standard variable rate (SVR). Always shop around for the best rates. However you must be careful to ensure you are comparing like with like. To do this check the annual percentage rate (APR) of the loan. You also need to bear in mind that the interest payments in respect of fixed rate mortgages can rise steeply once the initial 'fixed' period ends. Therefore your planning should always include the possibility of sharp changes to future interest payments. There are two basic species of mortgage, repayment and interest-only. The option you choose is determined by the way you want to repay your loan. Depending on the type of mortgage you choose, your monthly repayments will be made up of either capital and interest or interest only. A repayment mortgage requires you to pay back both interest and loan capital, so at the end of your mortgage period there is no money owing. With a repayment mortgage you make the repayments monthly for an agreed period (the 'term') until you've paid back all the loan and the interest. A typical term is initially 25 years, although it can be any amount of time - the shorter the term the higher your monthly payments but the less you'll pay overall. An interest-only mortgage allows you to repay just the interest on your loan, but you have to take out an investment that will mature to pay off the outstanding amount. With an interest only mortgage you'll normally also have to pay into another savings or investment plan that'll hopefully pay off the loan at the end of the term. A lender might require you to take out life insurance to pay off your mortgage should you die. You can choose from basic 'term assurance' with low monthly payments that stop when your mortgage term ends. You can also get insurance to protect your income or just your mortgage payments if you become ill or disabled, or lose your job. If you cannot meet your mortgage payments you should contact your lender as soon as you realise that you have a problem. Although your mortgage is secured on your home, lenders see repossession as the last resort: they stand to make more money from your mortgage than the sale of your home. Lenders will work out a plan with you to reduce your payments for a time or stop them temporarily, and work out a new term for your mortgage. It is wise to remember that your home is at risk if you do not keep up repayments on a mortgage or other loan secured on it. You may freely reprint this article provided the author's biography remains intact: About The Author
MORE RESOURCES:
Mortgage-Refinance - Google News |
|
|
|
RELATED ARTICLES
Real Estate Lender - Get Approved For a Mortgage Loan Online Real estate lenders now offer mortgage loan quotes and application online. You can be approved for a mortgage loan online in a matter of a few weeks. Using a Home Mortgage Calculator There are a variety of tools online that you can use to determine how much you can afford to pay for a home, how much the monthly payment will be based on the sale price of a home, and calculators to tell you whether it is better to rent or buy based on your personal situation. Using a home mortgage calculator online doesn't cost any money, and can be an extremely useful tool in your preparation and research for buying a home. Reverse Mortgage - Be Sure You Need It Before Applying For One Reverse mortgages used to be considered the last resort of desperate retirees who needed to borrow against their home equity in order to pay for medical expenses. With home prices across the country rising at astonishing rates, more and more retirees, aged 62 and over, are taking out reverse mortgages to fund better retirement living. Benefits of a Remortgage There are many benefits in choosing a remortgage, some of which are listed below.A remortgage is changing your mortgage without moving your home. 10 Things to Look for in a Home-Equity Line of Credit If you are a homeowner, you've probably received offers to apply for a home equity line of credit (HELOC). Handled with care, home equity credit lines can be an excellent way to improve financial flexibility, provide readily available cash reserves for emergencies, or pay for large expenses (like college tuition or home improvements) that have irregular payment schedules. Kingsland Georgia Mortgage Company Information For Homebuyers Transferring to Kings Bay If you are transferring to the Kings Bay Georgia Naval Submarine base, more than likely you will need a lender to buy a home.VA mortgages provide military homebuyers with 100% financing to buy a home. Kings Bay Georgia Mortgage Information When choosing the right mortgage company for your home purchase or refinancing, there are a few things to consider.What is this lenders reputation? Does this lender have a proven track record in the community and can they offer you not only the lowest interest rates available, but design a program to fit your needs and counsel you about your home purchase. Fixed Versus Adjustable Rate Mortgages Which One Should You Choose?Choosing between a fixed rate loan and aa adjustable rate loan is one of the most perplexing choices anyone can make. With a fixed rate loan, you know exactly where you stand today, and where you'll stand any number of years from today. A Qualified Mortgage Consultant Can Help Boost Credit Scores Consumers interested in purchasing or refinancing a home will pay an interest rate based on current market conditions and their ability to pay back the loan. The borrower's income and debt ratios are taken into consideration by the lender, as well as the predictability factor provided by credit scoring. Mortgage Questions to Ask Your Lender Buying and financing a home today can be overwhelming. Here are some questions to ask your lender so that you can make informed decisions. Securing a US Commercial Mortgage What's the most efficient way to secure a US Commercial Mortgage? Work with a mortgage broker who specializes in this area. If you've ever applied for a loan, you're familiar with the mountain of paperwork you are required to complete during the process. Mortgage Loans For People With Adverse Credit - How Much Should You Borrow "How much should you borrow?" is a question people with adverse credit wrestle with. The answer is simply as much as you can afford. How to Get a Cheap Homeowner Loan If you're looking for a cheap homeowner loan, you might be wondering what you can do to reduce the amount that you have to pay.The simplest answer lies in two things? shopping around to find the lender that offers the lowest interest rates on a cheap homeowner loan, and maximizing the value of your loan against the equity in your home that's being used as collateral. How I Became a Hard Money Lender Unlike other investors, my venture into real estate was a natural extension of my secondary business as the IP Ware software developer. However, opportunity and perseverance beget wealth, or at least a decent side income. Change in Texas Law May Make Reverse Mortgages More Popular Texas was one of the last states to allow homeowners to take out home equity loans. Laws going back to the nineteenth century strictly prohibited home equity lending, as legislators feared that unscrupulous lenders would take advantage of homeowners for the purpose of seizing their homes through foreclosure. Home Loans: To Substantiate Financial Possibilities On Your Land Availability of Home loans is in full bloom. They are uncomplicated, tenable, easily available, very flexible and tailor-made for homeowners. Home Mortgage Refinancing - What's in Your Contract? Are you one of the millions of Americans who will be refinancing their home mortgage loan this year? When you sign your contract and the other papers for your refinance, will you know what your signing?Your Contract: This one is simple, but I would guess very few people do it. READ THE ENTIRE CONTRACT. Uk House Price Increases Take A Summer Holiday Property website Rightmove has released its latest house price index announcing a "Summer sale" for house buyers. The report shows that on average, house prices fell by 1% over the four weeks leading up to 9th July, indicating that the "affordability gap" between house prices and buyers ability to purchase, is at last starting to close. Top 5 Methods to Manage Your Home Equity As your home appreciates in value, you gain equity. You can look at this equity, as a portion of the value of your home, which becomes an asset that is not burdened by debt. Keep Your Eye Focused on Treasury Bond Rates To Adjust Your Current Mortgage Rates Mortgage rates typically are based off the current rates of treasury bonds. Most lenders set their long term mortgage rates in line with 10 and 30-year treasury rates.
|
| home | site map |
| © 2006 |
