Stop Foreclosure with Loan Modification: business
Showing posts with label business. Show all posts
Showing posts with label business. Show all posts

Saturday, June 27, 2009

Is A Fixed Rate Mortgage For You?

Let's find out just what a fixed rate mortgage is, and how it may benefit you. We'll then look at using a mortgage overpayment calculator. With the fixed rate mortgage comes security. With the mortgage overpayment calculator comes potential savings
A fixed rate mortgage is a special type of mortgage where you have a fixed interest period. The interest rate is fixed, usually for a number of years. Locked in interest rates mean locked in monthly payments.

Are there any benefits to a fixed rate mortgage? A fixed rate of interest means a fixed monthly mortgage payment. You get to budget easier every month as your payments remain the same.

No matter what the average interest rate is, your rate will stay the same. There have been some alarming short term interest rate rises in our recent history. If the rates rose drastically over a short term those on variable mortgages could struggle to meet payments.

There is a situation when maybe you should think twice about a fixed rate mortgage. If you suddenly have an extra family member and need more space. Or you are simply considering moving home soon. Either of these events will cause you to trigger an unwanted redemption penalty.

Nearly all fixed rate mortgages have a redemption penalty attached. When you can least afford it you could have a charge slapped on you. You must think twice before agreeing to a fixed rate deal if a charge like this will badly affect you.

You might like to think about paying a small extra overpayment each month as you go through the length of your mortgage. You are not tied to make the same payments for the duration of the mortgage, usually 25 years. Lenders prefer you to make payments like this but they never inform you that you could pay extra if you wish.
What are the best reasons to paying a bit extra every month? You can easily shave years of your mortgage. Be debt free much earlier. By paying a bit extra now, the savings mount up substantially later on.

In what way does a mortgage overpayment calculator work? It uses figures from your mortgage. Amount, interest rate, length of term etc. You can enter a figure that you may think about paying as an extra payment each month.

The calculator will then tell you how many years you might reduce your mortgage by. It also gives you a figure in cash that you can expect to save. Putting bigger figures in the overpayment box will show bigger savings and even more time saved.
You might be pleasantly surprised at the savings to be made. If you borrowed a hundred thousand at five percent over twenty five years. If you pay an extra fifty each month, you can shave more than 3 years off the length and save 12,000 in interest payments.

If you can afford to pay 100 extra instead of 50 what would happen? Paying 100 extra every month using the same example mortgage. In this new example the time saved is over six years and the financial saving is more than twenty thousand.

An extra advantage is you won't have any payments to make during the last few years of the mortgage. It's definitely a reality for you to be free of your mortgage years before planned. Of course your lender will never tell you this, you have to discover this on your own.

If we revisit the example where we knocked more than six years off the mortgage. This shortening of the mortgage by six years saves you another 40,000 or more. You don't pay this money to your lender so you get to keep it, either save it or spend it.

To recap we had a look at what benefit a fixed rate mortgage has for you. Regular payments and a good night sleep. We also had a look at a mortgage overpayment calculator and the potential savings that can be had.

Article Source: the-Articles.com

About the Author
Author: MontyBurn
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Sunday, June 21, 2009

Save Serious Cash With A Mortgage Overpayment Calculator

If you could afford to pay a little extra each month, then an overpayment calculator can show you how much you might save.

The general theme is to pay extra on your monthly mortgage payments. Pay 600 instead of 500 if you can.
The savings made at the end may stagger you. We're talking thousands saved and years knocked off.

As every mortgage deal is slightly different it's hard to give examples for your figures. You should put your figures into an overpayment calculator and see your own results.

A pretty standard example is a 100,000 mortgage at 5% interest. Your monthly payments would be in the region of 580.

If you could pay 680 every month your mortgage would be finished in just over 18 years and you'd save 20 grand in interest fees.

Considering you agreed to 25 years on the deal you are now free 6 years early.

I think that you should most certainly make overpayments if you can. The interest saved snowballs into huge savings later on.

Another quick example, using the same figures as earlier but paying 200 a month over the top. I know this is a lot more but if you could stretch to it now it's worth your while.

If you did pay this two hundred extra you would save almost ten years off the mortgage and save cash to the sum of 32 thousand. They are really eye opening figures.

Another benefit to paying extra and getting the mortgage over with early is the fact you aren't paying anything for the years you save. And that can add up to a lot of money saved.
You could save yourself another 40 thousand because you aren't paying the 580 per month for the last 6 years.

It's got to be great news for you when all this extra saving doesn't even come out of your pocket. It stays there.

We've been talked at and advertised to over the years. And we now firmly believe we have to stick with the deal offered, but that's poppycock.

Would you keep your mortgage for 25 years if you became rich overnight? My guess is not, and with overpayments you can also reduce the length of your mortgage.

However, your lender won't tell you any of this!

However, your lender won't tell you any of this!

Article Source: the-Articles.com




About the Author
Author: MontyBurn
Monty Burn was head of the Voluntary Mortgage Regulator until his sacking for assisting too many people



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Friday, June 19, 2009

Could A Mortgage Overpayment Calculator Help You?

Before we start to answer the question in the title. Let's explain what a mortgage overpayment calculator actually is.

Most overpayment calculators come on websites. You could get a standalone bit of software or a spreadsheet to do the job though.
You simply enter the terms of your particular mortgage, or even one you are planning and it throws out figures that tell you how much cash and how many years you could save.

Many people fail to realise (or are not told) that the usual 25 year terms aren't fixed. If you can afford to pay extra you can reduce this by years. If you can afford to pay extra you should.

Basically what an overpayment calculator tells you is if you pay X amount of cash extra each month then you knock Y amount of cash & years of your mortgage.
Sometimes the saving can be staggering. And these savings are yours not the lenders.

OK, back to the question in the title. What could it do for you? The answer depends on your circumstances.

Amounts borrowed and individual mortgages come in many different flavours. But it matters not if you can make a few overpayments as it will still reduce the length. Which is good tidings for you.

If I give you an example of a 100,000 mortgage at 5% interest over 25 years. If you could pay an extra 100 each month from month one. You'd save over 6 years and 20 grand.

Now I don't know how you feel but If I could afford to pay that extra then I most certainly would.
The same mortgage but paying only 50 extra a month still knocks off three and a half years and 12 thousand. Still very nice savings.

In the six years saved in the example you make no payments at all. Many people forget that fact.

This means you don't pay, but save another 40 thousand over the last six years.

If you can't afford or don't plan to make long term payments then at least try to make some extra payments early on. This early overpayment can compound nicely later on making hefty savings.

If you have or are thinking of getting a mortgage you owe it to yourself to have a play with a mortgage overpayment calculator and put your particular figures in it. You may be staggered at what comes out.

Mind you, your lender won't want you to know all this!

Article Source: the-Articles.com

About the Author
Author: MontyBurn
Monty Burn was head of the Voluntary Mortgage Regulator until his sacking for helping too many people



Visit the National Debt Solution Center Website

Resources and Information About Loan Modification
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Wednesday, June 17, 2009

Since reverse mortgages work different than a traditional home loan, you want to consider the major pitfalls of a reverse mortgage. Learning about the

As a starting point, you want to consider that no all reverse mortgages are the same. Before applying for a reverse mortgage, you need to ensure that you are choosing the correct kind. The 2 major types are the private reverse mortgage and the FHA backed reverse home mortgage.

With a private reverse mortgage, there are basically no limits on how much you can be charged. Whenever you hear of bad stories of people who applied for a reverse home mortgage and ended up paying way too much is because they picked out this kind of home loan. Keep away from this home loan.
With a FHA backed reverse home mortgage, there are plenty of regulations that lenders must abide by. FHA regulates this kind of reverse mortgage and sets the costs that reverse mortgage lenders may charge you. Obviously, you invariably want to choose this kind of reverse mortgage.

Furthermore, with a FHA backed reverse mortgage, you have the opportunity to a free advising session. In this session, you can question all the questions you have. Write all your questions before the session so that you do not forget later on. Take full advantage of this session.

A different one of the pitfalls of a reverse mortgage is when a mortgage lender is too eager for you to get a reverse mortgage so that you pay for something else: a second house, an investment tool, etc. Often, be careful of mortgage lenders who appear to be too eager about you getting the reverse mortgage.

Moreover, keep in mind that even though you won't have to make any recurring payments, you are nevertheless responsible for the regular fees related with the title of a home: real estate taxes, regular maintenance, insurance, etc.

You may decide to apply a portion of the money you receive from the reverse home mortgage to pay for these costs. That way, you may ensure that you'll live in your home for as long as you want.

Furthermore, a reverse home mortgage may not be the cheapest solution for you. You may contemplate to refinance or to sell the home. Naturally, a reverse home mortgage may be the best answer for you if you want to live in your home and do not want to pay any monthly payments or if you need a consistent "second income."
In conclusion, try to choose a FHA insured reverse mortgage lender. Also, maintain adequate funds to pay for the maintenance costs and ensure that a reverse mortgage is the cheapest or more appropriate solution for you. In this way, you can be sure to reduce the pitfalls of a reverse mortgage.

Article Source: the-Articles.com
About the Author
Author: IgorBuces



Visit the National Debt Solution Center Website

Resources and Information About Loan Modification
Find the Answers You Need and Get Help Today
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Thursday, June 11, 2009

Fixed Rate Mortgage - Good Or Bad?

We are going to investigate what a fixed rate mortgage can do for you. We will also look into how a mortgage overpayment calculator might save you lots of cash. From definite security with the fixed rate mortgage to potential cash saved with the overpayment calculator.

There are a few different types of mortgage, the fixed rate being only one of them. You get a fixed interest period for several years. Locked in interest rates mean locked in monthly payments.

Are there any benefits to a fixed rate mortgage? Because your payments stay the same you don't get ups and downs in your monthly payments. You get to budget easier every month as your payments remain the same.

Your payment is locked so it really doesn't matter what the general rates are doing. In our recent history there have been some frightening short term interest rate rises. Being on a variable rate leaves you susceptible to the rapid rise of your monthly payment.

Under certain circumstances, a fixed rate mortgage could be a mistake. If you think you may move home, or even have another child and need an extra bedroom, then think carefully before taking a fixed rate mortgage. In situations like these you may need to redeem the mortgage and pay a hefty redemption penalty on the fixed rate mortgage.
Nearly all fixed rate mortgages have a redemption penalty attached. When you can least afford it you could have a charge slapped on you. These unexpected charges can hurt. Consider carefully whether a fixed rate is the one for you.

A consideration during your mortgage term is to pay a bit extra each month on top of your normal payment. You may not realize but you can pay any amount over the minimum monthly payment. Lenders prefer you to make payments like this but they never inform you that you could pay extra if you wish.

If you do pay extra each month, are there any benefits to this? The extra payments reduce the sum owed quicker and the result is you save years off the term of your deal. Not only do you save years but you save piles of cash, usually many thousands.
What do you do with a mortgage overpayment calculator? You enter your mortgage details. The amount borrowed, the length, the interest rate etc. You can then play around by changing the figure you can afford to overpay.

The calculator will then tell you how many years you might reduce your mortgage by. You get the expectant cash saving as well. The figures in years and cash saved will increase the more you overpay each month.

You may be amazed by how much you could save. If we take a mortgage of 100,000 borrowed over 25 years and assume you get an average 5% interest rate. You could save over twelve thousand and shorten the mortgage by more than 3 years just by paying an extra 50 each month.

The last example was an overpayment of 50 every month, but what happens if you pay 100 extra. Using the same figures in the mortgage but substituting 100 extra for the previous 50 extra. You can knock a staggering 6 years or more off the length and save yourself in the region of 20 thousand.

One more advantage is that the years you save are payment free, nothing at all to pay. By paying a little extra now, you could easily be mortgage free well before you ever expected. You never get info like this from your lender. This sort of stuff is kept quiet by the industry.

If we look at the example where we paid 100 extra and knocked over 6 years off the length. This shortening of the mortgage by six years saves you another 40,000 or more. You can do what you like with this extra as it never needs to be paid to your lender.


We've looked at some of the advantages of a fixed rate mortgage. Regular payments and a good night sleep. We also looked at potential savings by paying extra each month. Every little helps.

Article Source: the-Articles.com




About the Author
Author: MontyBurn


Visit the National Debt Solution Center Website

Resources and Information About Loan Modification
Find the Answers You Need and Get Help Today
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Wednesday, June 10, 2009

Stopping Foreclosure Fast

Foreclosure is a stressful time for homeowners. Yet, you must make critical decisions about the future of your home. There's not much time and you need to act fast for the best resolution. Luckily, you do have some options that can stop foreclosure very fast. Read on to learn about techniques commonly used to stop foreclosure fast.

Refinancing Your Loan
A refinance to stop foreclosure can work in some in some situations. If you have ample equity in your home and a sturdy income, you may be a perfect candidate for a refinance payoff. This is when a bank finances a new loan, supplying the funds to pay off the initial mortgage plus any fees and penalties. By paying off the mortgage, you prevent foreclosure. If you have an adjustable rate loan that has recently ballooned, you might be an ideal candidate for a refinance loan as well.

Bankruptcy Filing

Declaring bankruptcy to stop foreclosure fast is a drastic measure and unless you have other reasons for the bankruptcy, it usually is not the ideal choice. Bankruptcy has many unfavorable consequences and can lead to even worse harm to your credit. It is true that bankruptcy will temporarily halt a foreclosure, however that only puts off the foreclosure process until a judge says that it can go forward.

Short Sales
In a short sale, you come to an agreement with your lender for you to sell the home for less than you owe. Of course, the bank isn't fond of short sales because they lose money on the deal. It is still possible to have them approved by negotiating directly with your bank. A quick warning - short sales might have an effect on your taxes because the IRS thinks of short sales as income..

Offering a Deed in Lieu of Foreclosure

You can offer the bank whats known as a "Deed in Lieu of Foreclosure" on the property. This boils down to turning back the home to the bank to avoid the foreclosure process. By giving back the property, you can attempt to avoid the stress of the actual foreclosure and the longterm damage to your credit. This may be a good option if you think that you can't afford the house and have no time left to pursue other choices.

These are just some of the techniques used by people to stop foreclosure fast. Its very important that you do something at the first sign you might fall behind on your mortgage. If you deal with the problem early on and work with your bank you may prevent foreclosure altogether.

Article Source: the-Articles.com

About the Author
Author: IreneParkdale

Learn How to Stop Foreclosure
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