Having Mortgage Calculators Calculating The Best Loan Option
You need to use more than a mortgage calculator to find out which is the best plan for your needs. Here you have a quick guide to help you decide on the best plan for you.
The Different Types Of Mortgage Loan Options
So you have decided to purchase your own home and you need to find out which type of home loan is the best for you. There are basically three main types of mortgage loans available so let us have a look at them and try to find one that will best suit your requirements.
1. The Fixed Mortgage Loan.
30 year fixed rate: this loan is probably the most popular type of arrangement because it provides for low monthly repayments and is usually chosen by people who will stay in their home for a long time. One of the advantages is that you will have more money in your pocket each month.
A disadvantage is that you will pay more for the loan in the end compared to shorter type loans.
15 year fixed rate: this loan allows you to pay your mortgage off in 15 years. You will save money in the long run. An advantage of this type of loan is that you pay half the interest of a 30 year loan. A disadvantage is that you will have to pay higher monthly repayments during the term of your loan.
Biweekly loan: this type of loan is generally done on a 30 year fixed rate plan. By paying every fortnight though, you pay extra payments every year and you generally find that you will pay off your loan in about 23 years.
This loan also builds your equity in your home much faster. An advantage is that you pay your home off faster and you pay less interest. A disadvantage is that you have to pay every two weeks.
An Adjustable rate mortgage or (ARM): this loan is good because of the way in which it works on interest rates and they generally are lower at the start than a fixed rate home loan. This means you will pay less each month but you have to consider the disadvantage of paying higher interest if the rates go up.
An obvious advantage is that when the interest rate drops so do your repayments. Alternatively, a disadvantage is that if the interest rate rises so do your repayments.
2.
Convertible loans:
Included in these options are Hybrid and convertible ARM type loans. One is an ARM that lets you convert to a fixed rate or a fixed rate home loan that you can covert to an ARM. This means that you have the option to change your mortgage loan after a few years if you wish. An advantage is having the ability to change between ARM and fixed rate. A disadvantage being that if interest rates are high you might not wish to convert.
Interest Only Loan: this type of loan is beneficial for those who work on commission or can get big bonuses so they only pay the interest on their loan and when they get their bulk income they can put it towards paying off the actual loan.
An advantage is that you are able to secure a bigger loan amount. A disadvantage being that you have to pay in lump sums and when you only pay the interest then you are not paying anything off on your house loan.
Balloon loan: this type is a fixed rate loan with small monthly repayments that generally last about 7 years. Then you must pay the loan in one big lump sum or have the option to be able to refinance. An advantage for people who will want to sell their house before the balloon payment is due and also low interest rates. A disadvantage being that you have to pay a lump sum at the end of the loan term or refinance at usually a higher interest rate.
Reserve mortgage loan: this type of loan is ideal for equity rich seniors.
It requires no monthly repayments. An advantage is that you will have more money in your pocket. A disadvantage is that the loan needs to pay if you sell your house and reduces equity for inheritors.
Buy down mortgage loan: there are two types involved here, a temporary and a permanent loan. They both work on points and lower interest rates. An advantage is lower repayments.
A disadvantage is that you need to pay a higher down payment to lower interest rates.
3. The Special Mortgage:
FHA mortgage: for first time home buyers, people who have only a little down payment and credit problems. An advantage being a low down payment and repayments. A disadvantage is the cap on the loan and limited mortgage options.
Veteran Affairs Loan: this is only for people and widowers of the armed forces. An advantage is that there is no down payment necessary.
A disadvantage is that it is not available for everyone and usually takes longer.
So, there are many types of loans available to you when you want to buy your own home. To find out which one will the most beneficial for your needs is to consult a financial professional and they will go through them with you one by one..
The 7 Sins of Mortgage Brokers
Honesty is the most important aspect of dealing with mortgage brokers. Unfortunately not all brokers are forth coming with certain information that would allow you to trust them and make an informed decision about the deal they recommend. Don't get me wrong not all mortgage brokers are bad. Just don't underestimate the influence that commission has on their recommendations. And, as always there are bad eggs in every industry.
Being aware of the following broker sins will help you pick a trustworthy broker and make sure they get the best deal for you. Most importantly, don't be afraid to ask questions.
Sin 1: Favouring their loan product.
You need to be aware if the mortgage broker is also a lender, i.e. do they have their own loan products? If they do, and they offer there own product, there needs to be a clear, understandable reason why their product is the best choice for your situation.
Sin 2: Being influenced by commission.
Mortgage > The 7 Sins of Mortgage Brokers
Credit Card Debt Consolidation Home Loans Now Available With the "Payment Buster" Refinance Program
Winter Park, Florida (ContentDesk) March 6, 2006 -- Credit card debt consolidation mortgage refinance loans - http://www.fgmnet.com/debt_consolidation_mortgage_loan.php - can help consumers take control of their credit card debt load by paying off their credit card balances with a home refinance loan. First Guarantee Mortgage (http://www.fgmnet.com) a home mortgage refinance expert resource and multi-state mortgage broker located in Winter Park, Florida is now offering a Payment Buster debt consolidation home loan program to help homeowners with high credit card debt to refinance and gain tax benefits as well as lower monthly mortgage payments.With the Payment Buster debt consolidation refinance program homeowners now have the opportunity to consolidate all their high interest credit cards payments into one low tax-deductible payment.See more...
Credit Card Debt Consolidation Home Loans Now Available With the "Payment Buster" Refinance Program
Mortgage > Credit Card Debt Consolidation Home Loans Now Available With the "Payment Buster" Refinance Program
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. Aside from my ventures into lease optioning residential property, I and my partner have managed to acquire a number of properties with our own credit. However, when looking at our finances and the return we were getting for the amount of effort involved, we both decided there must be a better way. That is when it occurred to me.
Instead of trying to leverage our existing assets for a diminishing return, perhaps we could be the bank.Here is the scenario as it has played out. First of all, we control a decent number of properties with our own credit. Most were purchased with 100% financing using multiple capital sources. However, each contains only a primary lean and is financed using standard mortgage terms. Subsequently, there is a 20% secondary credit position...
How I Became a Hard Money Lender
Mortgage > How I Became a Hard Money Lender
First Mortgage Loans
Before taking out a mortgage, it is important to consider your financial situation and research the many options in the market. Competitive rates are increasing with the number of people seeking loans, so you may need the help of a mortgage broker to inform you of the best deals around.
To start with, you must calculate how much can you repay. The standard rule is that your annual repayment of the mortgage should not be more than 27 per cent of your gross income. You can also set aside around 2 per cent of your gross income to account for unexpected costs. This means that you must be able to repay the loan under any circumstances, without exception.
If you have good credit together with a regular job, you can be eligible for a loan with a down payment of little as four percent. Further, if you are married and your spouse is also employed, things may get even easier for you. However, if you are a single parent, you may find it tough to secure a loan...
Mortgage > First Mortgage Loans
Real Estate Expo/Miami Supercedes Expectations in Both Quantity and Quality of Attendance, Miamia, FL (Jan. 31 & Feb. 1, 2004)
Miami, FL (ContentDesk) February 4, 2004 -- The Real Estate Expo/Miami, which took place this past weekend at the James L. Knight Center in downtown Miami, was considered an overall success by exhibitors and attendees alike.
The highly anticipated, two-day event concluded with approximately 1,000 individuals in attendance.
More important than quantity, however, exhibitors raved about the quality of the traffic, stating that the attendees at this year's Expo were serious customers interested in purchasing real estate and genuinely seeking the expertise of exhibitors. "Attendees were very target marketed, whether they were brokers or potential buyers.
We generated a number of leads from the event."-Jerry Krystoff, Colonial Development
As the only real estate convention of this type in the nation, the Expo served as a forum for potential real estate buyers and investors to access the industry's leading developers, real estate agencies, title companies,...
Mortgage > Real Estate Expo/Miami Supercedes Expectations in Both Quantity and Quality of Attendance, Miamia, FL (Jan. 31 & Feb. 1, 2004)
Scotsman Guide Unveils Complete Set of Online Wholesale-Lender Search Engines
(ContentDesk) March 27, 2006 -- Scotsman Guide, the leading resource for mortgage originators, has announced the release of its complete line of free online wholesale-lender search engines at scotsmanguide.com.All matrixes from Scotsman Guide's residential and commercial magazines are now searchable online. Mortgage brokers can search residential wholesale lenders in seven categories: Prime, Alt-A, Nonprime, High CLTV, Construction, Hard Money and Warehouse Lines. For commercial lenders, brokers can search four categories: Commercial, Multifamily, Hard Money and Construction.These search engines are just another way that Scotsman Guide helps mortgage brokers connect with wholesale lenders and fund their loans. With just a few simple steps, Scotsman Guide's fast and free online search engines allow brokers to find lenders that fit their specified criteria. When viewing their search results, brokers can...
Scotsman Guide Unveils Complete Set of Online Wholesale-Lender Search Engines
Mortgage > Scotsman Guide Unveils Complete Set of Online Wholesale-Lender Search Engines
Minnesota Businessman Teams with International Boxing Legend, Roberto Duran
Minneapolis, MN (ContentDesk) June 26, 2006 -- John Laub founder of Minnesota Lending and the newly established Minnesota Mortgage Network is teaming with Panamanian patriot and boxing legend Roberto Duran to launch Blue Bridge Media.
On a trip to Panama Laub noticed the lack of advertising on taxicabs in Panama.
Imagine the landscape of New York City without its beloved taxi tops.
Panama is covered with billboards, television and poster advertising but had yet to capture the essence of taxi top advertising.???? Blue Bridge Media is bringing taxi top advertising to Panamas 25,000 taxicabs.
Major corporate advertisers and taxicab operators have lined up for the opportunity to touch the masses with their message.
Each taxi cab driver will be paid an upfront fee of 10 plus a monthly contract fee of 30 to attach the taxi top to their vehicle.
Blue Bridge Media will maintain and monitor advertising on all of the vehicles. Laub and Duran...
Mortgage > Minnesota Businessman Teams with International Boxing Legend, Roberto Duran
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