Generally, Mortgage interest rates track the central banking system's 'base interest rate', but there are a LARGE number of deals for new customers, including early year discounts, fixed interest rates, capped rates and so on. If your mortgage company isn't offering you a competitive rate, but other mortgage lenders are, confront them with it! Often they rely on your disinterest to keep overcharing you interest (excuse the pun!). When confronted, they usually crumble and will offer you a better deal rather than lose your custom.
Always use the APR when comparing home loans. The APR (Annual Percentage Rate) allows you to compare the loans offered by different Mortgage and home loan lenders in a like for like manner, and shows you the true cost of the loan as a yearly rate. This stops lenders hiding 'extras' (such as upfront fees) behind a fog of low rate claims, and means you have the true interest rate to play with. generally, most house hunters get an approval in principle from their chosen mortgage company.
This makes you more attractive to sellers because it shows you are serious, and have the financial wherewithall to proceed should you decide to try and buy their house.
It will also give you a firm indication that of what your budget is (although most lenders have slackened their rules in recent years, they still apply SOME rules!). This pre-qualification will keep you in the right price bracket too, and stop you wasting time on properties beyond your reach. If you meet the lender's criteria, try to lock in good interest rates. This means the lender promises to hold their offer for you at a certain interest rate( Home loan) for a certain time while you proceed with the purpose. Variable rate mortgages, more popular in Europe, can be crippling if interest rates rise from the historically low rates prevalent at time of writing.
Source : http://www.mortgage.webseo.com.au
Monday, August 6, 2007
Thursday, July 19, 2007
Home Loan Checker Software
The main points covered are:
* Every Home Loan and Mortgage is at risk of being overcharged.
* Home Loan Checker Software is an affordable way to audit your own mortgage.
* Essential features to look out for include a balance checker, interest checker, and refund calculator report
* Nice-to-have features include summary reports, what-if analysis, and import/export functionality.
* Make sure you can trial the software (for free) before you buy it.
* If there is a money back guarantee, make sure it is unconditional and you don't have to wait months or years before you can get your money back.
source : http://www.homemoneymanager.com
* Every Home Loan and Mortgage is at risk of being overcharged.
* Home Loan Checker Software is an affordable way to audit your own mortgage.
* Essential features to look out for include a balance checker, interest checker, and refund calculator report
* Nice-to-have features include summary reports, what-if analysis, and import/export functionality.
* Make sure you can trial the software (for free) before you buy it.
* If there is a money back guarantee, make sure it is unconditional and you don't have to wait months or years before you can get your money back.
source : http://www.homemoneymanager.com
Monday, July 2, 2007
How long do you plan on living in the home
The national average for how long people live in their homes is approximately seven to nine years. Reasons for leaving a home can vary widely, but if you purchase a home and decide to move after only a short time, you may end up paying money in order to sell it. Generally, the shorter you're in your home, the less time your home has to appreciate in value—perhaps not enough to recover what it cost to buy and sell the home.
The amount of time it takes to recover those costs can depend on various economic factors. In most parts of the country, homes appreciate at an average of five percent per year. If this is the case in the area you are looking to buy a home in, you should stay in your home at least three to four years to recover buying and selling costs. If the area where you buy your home experiences an economic upturn, it may take less time to recover those costs. Conversely, if the local economy is not doing well, it may take longer.
The amount of time you plan on living in your home will have an impact on what home loan you choose. If you plan on staying there for more than ten years, a long-term fixed-rate mortgage might be a sensible choice. But if you know you're going to move within three to five years, an adjustable rate mortgage (ARM), with its lower payment options, might be a better choice.
source : http://www.quickenloans.com/mortgage/articles/buying_home/buying_first_home.html?lid=3752
The amount of time it takes to recover those costs can depend on various economic factors. In most parts of the country, homes appreciate at an average of five percent per year. If this is the case in the area you are looking to buy a home in, you should stay in your home at least three to four years to recover buying and selling costs. If the area where you buy your home experiences an economic upturn, it may take less time to recover those costs. Conversely, if the local economy is not doing well, it may take longer.
The amount of time you plan on living in your home will have an impact on what home loan you choose. If you plan on staying there for more than ten years, a long-term fixed-rate mortgage might be a sensible choice. But if you know you're going to move within three to five years, an adjustable rate mortgage (ARM), with its lower payment options, might be a better choice.
source : http://www.quickenloans.com/mortgage/articles/buying_home/buying_first_home.html?lid=3752
Thursday, June 14, 2007
What is an interest only home loan
There are a number of good reasons to consider an interest only loan. For instance, it might make good financial sense. On a traditional 30-year fixed-rate mortgage, roughly 70% of the payment goes toward interest during the first six or seven years of the loan. If your interest rate is low, then you've borrowed money at a good rate.
Smart Choice Interest-Only Home Loan :
Instead of paying down that low rate loan, you could take the extra money you'd have each month from making interest-only payments, and invest it in something that would bring you a higher rate of return. Depending on your loan amount, you could have access to thousands of dollars over the course of several years to invest or reduce high interest debt, including credit card debt.
An interest-only home loan may also be a good option for people who expect to be in their homes for less than ten years. The average homeowner stays in their home between five and seven years. As mentioned before, home mortgage payments are mostly interest for the first years of the loan. Many homeowners like the option of making interest-only payments and using the extra money as they please - save for college tuition, make home improvements, or buy a much-needed new car.
While interest-only home loans may be an appealing option to many, there are a number of common misconceptions that you should be aware of prior to making any final decisions.
One common myth is that if you're not paying down your loan's principal, you're not building equity in your home. This is not necessarily true. Homes in the U.S. have been appreciating between 5 and 6% a year. Chances are that even if you're not paying down your principal, you're building equity in your home through appreciation.
You should also know that with any Quicken Loans interest-only home loan, there are never any prepayment penalties. You can refinance anytime.
source : http://www.quickenloans.com/mortgage/articles/interest-only-loans_pur.html?lid=1623
Smart Choice Interest-Only Home Loan :
Instead of paying down that low rate loan, you could take the extra money you'd have each month from making interest-only payments, and invest it in something that would bring you a higher rate of return. Depending on your loan amount, you could have access to thousands of dollars over the course of several years to invest or reduce high interest debt, including credit card debt.
An interest-only home loan may also be a good option for people who expect to be in their homes for less than ten years. The average homeowner stays in their home between five and seven years. As mentioned before, home mortgage payments are mostly interest for the first years of the loan. Many homeowners like the option of making interest-only payments and using the extra money as they please - save for college tuition, make home improvements, or buy a much-needed new car.
While interest-only home loans may be an appealing option to many, there are a number of common misconceptions that you should be aware of prior to making any final decisions.
One common myth is that if you're not paying down your loan's principal, you're not building equity in your home. This is not necessarily true. Homes in the U.S. have been appreciating between 5 and 6% a year. Chances are that even if you're not paying down your principal, you're building equity in your home through appreciation.
You should also know that with any Quicken Loans interest-only home loan, there are never any prepayment penalties. You can refinance anytime.
source : http://www.quickenloans.com/mortgage/articles/interest-only-loans_pur.html?lid=1623
Friday, June 1, 2007
Home Equity Loan Online Lets You Fructify Your Dreams
Availing home equity loan online does not require any credit check as the loan is a secured loan. However, the processing of home equity loan online may be a bit lengthier as the lender has to go through the documents associated with the home. The annual percentage rates associated with these loans are usually lower than other loans and these rates may come with closed or open ends.
Presently, a number of lenders in the UK hand out home equity loan, online. The loan is the perfect tool to cash in from the equity your home has and spend the way you like. Applying for this loan too is easy as it can be done online. Online application process for home equity loan online make your loan procurement process easy, time saving, lesser documentation, cost saving and comes with flexible terms and conditions.
Even individuals with bad credit history, CCJ, IVA, arrears and defaults can apply for home equity loans online. Above all, no lender will question the borrower about how he is going to spend the loan amount. The online process also lets a borrower avail the loan from the comfort of home or elsewhere and with much privacy. Stop thinking, if you need a cheap loan, take resort of home equity loan online today and realise your dreams.
source : http://www.online-home-improvement-loan.co.uk/
Presently, a number of lenders in the UK hand out home equity loan, online. The loan is the perfect tool to cash in from the equity your home has and spend the way you like. Applying for this loan too is easy as it can be done online. Online application process for home equity loan online make your loan procurement process easy, time saving, lesser documentation, cost saving and comes with flexible terms and conditions.
Even individuals with bad credit history, CCJ, IVA, arrears and defaults can apply for home equity loans online. Above all, no lender will question the borrower about how he is going to spend the loan amount. The online process also lets a borrower avail the loan from the comfort of home or elsewhere and with much privacy. Stop thinking, if you need a cheap loan, take resort of home equity loan online today and realise your dreams.
source : http://www.online-home-improvement-loan.co.uk/
Wednesday, May 9, 2007
Hybrid Home Loan and its Working
Also referred to as the delayed first adjustment ARM (adjustable rate mortgage), a hybrid loan features a fixed rate of interest for a set number of years before changing into a traditional ARM for the remaining amortization schedule. As with all types of home mortgage products, hybrid loans come with positives and negatives. Here's a rundown of the particulars of most hybrid mortgages and what you can expect. First time home loans and interest only home loans can be such types.
Hybrid Loan Details :
» The Fixed Period. Just as the name implies 7/1 ARM has a fixed rate for two, three, five or seven years, respectively. Once this fixed period ends, the home loan will reset based on the conditions of the remaining term. You can always refinance at this point.
» The Adjustable Period. If you don't refinance, your mortgage will enter into its adjustable rate period. The rate will adjust at regular intervals following the fixed period and is based on the prevailing market rates.
» Why Choose a Hybrid? A hybrid home mortgage allows you to choose how much fixed rate and how much adjustable rate mortgage you're looking for. In general, the shorter the fixed period, the lower percentage rates you will pay. For example a 3/1 ARM has a lower start rate than a 10/1 ARM.
source : http://www.loanpage.com/
Hybrid Loan Details :
» The Fixed Period. Just as the name implies 7/1 ARM has a fixed rate for two, three, five or seven years, respectively. Once this fixed period ends, the home loan will reset based on the conditions of the remaining term. You can always refinance at this point.
» The Adjustable Period. If you don't refinance, your mortgage will enter into its adjustable rate period. The rate will adjust at regular intervals following the fixed period and is based on the prevailing market rates.
» Why Choose a Hybrid? A hybrid home mortgage allows you to choose how much fixed rate and how much adjustable rate mortgage you're looking for. In general, the shorter the fixed period, the lower percentage rates you will pay. For example a 3/1 ARM has a lower start rate than a 10/1 ARM.
source : http://www.loanpage.com/
Wednesday, May 2, 2007
New home construction loans
New home construction loans are used by borrowers when choosing to build a new house. With this type of lending program, financial agreements are designed differently than standardized agreements. A new home construction loan is designed for the unique needs of builders, whether the individual is a licensed contractor or buyer in the market for a newly designed house.
New home construction loans allow interest-only payments during the building process with the amount coming due or rolled into a mortgage payment upon the building's completion. If the individual has arranged for the agreement to be construction-to-permanent financing, then there is only one application and one closing which will save a great deal of time. Completion of the agreement will be based upon the legal issue of a certificate of occupancy.
These financial packages are usually based on variable rate loans which allow for the funds to be dispersed on a "draw schedule" basis, according to the stages of construction and the needs of the buyer, contractor and/or the lender. The consumer can also lock in a certain rate on the new home loans during the building process, but rate locks are only effective for 30-60 days.
If the individual has locked in a loan rate for a new home construction loan and they see that rates decrease during construction, then they will be relieved if the original agreement includes a float-down feature that allows a reduction in the rates, even if this can only be done once. Float-down features may require the consumer to select higher rate agreements, but they are also a safeguard, especially if the rate lock is going to affect the building process.
source : http://www.christianet.com/homeloans/newhomeconstructionloans.htm
New home construction loans allow interest-only payments during the building process with the amount coming due or rolled into a mortgage payment upon the building's completion. If the individual has arranged for the agreement to be construction-to-permanent financing, then there is only one application and one closing which will save a great deal of time. Completion of the agreement will be based upon the legal issue of a certificate of occupancy.
These financial packages are usually based on variable rate loans which allow for the funds to be dispersed on a "draw schedule" basis, according to the stages of construction and the needs of the buyer, contractor and/or the lender. The consumer can also lock in a certain rate on the new home loans during the building process, but rate locks are only effective for 30-60 days.
If the individual has locked in a loan rate for a new home construction loan and they see that rates decrease during construction, then they will be relieved if the original agreement includes a float-down feature that allows a reduction in the rates, even if this can only be done once. Float-down features may require the consumer to select higher rate agreements, but they are also a safeguard, especially if the rate lock is going to affect the building process.
source : http://www.christianet.com/homeloans/newhomeconstructionloans.htm
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