How To Save Thousands In Interest On Your Home Mortgage
So you have a mortgage on your home or planning to get one? Here's something to consider if you want to reduce your interest payment and save on thousands of dollars. Consider going in for a bi-weekly mortgage payment plan.So, what is a bi-weekly mortgage payment plan? The difference in this type of mortgage plan lies in the frequency of payments. Out here you make your payments every two weeks instead of every month. By going in with such a payment plan, you end up paying for the 52 weeks in a year, i.e. 1 month more than the otherwise 12 payments you would make with the monthly plan (52 / 4 = 13 payments in a year).
You may think why pay extra? But the benefits are there for all to see. By going in for such a mortgage plan, you are reducing the tenure of your loan as well as continuously reducing the principal and interest which has to be repaid.An illustration to show what we mean - Suppose you were to go in for a mortgage of $150,000 for a term of 360 months at an interest rate of 6%, your monthly payment would work out to $899.93 and your total interest through out the tenure of the loan would work out to $173,757. Now consider the same mortgage taken on a bi-weekly payment plan. Your bi-weekly payments would be of $449.67 while your total interest for the entire tenure would work out to only $135,294 + you end up completing the loan in 24 years instead of 30. Huge difference!The savings from such a payment plan are huge and are worth considering if you can afford to make the payments every two weeks.
At least, keep it as an option!.
Sameer S Panjwani is the CEO and Founder of ChoiceOfHomes.com - Real estate listings of homes on sale and rent.When Is The Right Time To Refinance Your Mortgage?
You've heard that interest rates are down and you think it could be time to refinance your existing mortgage, but the entire loan application process was so exhausting during the initial loan that you aren't sure it's worth the hassle. You could very well be right, but there are some things you can do to help decide whether it's time to refinance your mortgage.The first thing you need to verify is the interest rate for your existing mortgage and the interest rates being offered across the board for new loans. If there's not at least a one and a half to two point difference, you're probably not going to be significantly better off to refinance your mortgage. Here's why. Remember those closing costs on your initial mortgage? You probably paid for an appraisal, perhaps a home inspector's services and even a survey if you have rural property.
Depending on how long it's been since your original loan, you may be faced with having all those processes repeated. Especially if you are going...
When Is The Right Time To Refinance Your Mortgage?
Mortgage > When Is The Right Time To Refinance Your Mortgage?
New World Mortgage CEO Among Top 40 Brokers At National Conference
(ContentDesk) October 17, 2005 -- Christian Werner, CEO of New World Mortgage, recently joined a group of the 40 top brokers from around the US to brainstorm with GMACs Homecomings Financial unit about new products and services.The session, held at the Scottsdale Princess Resort in Scottsdale, AZ, brought together the largest and most creative mortgage brokerages in the country to discuss opportunities provided by todays rapidly changing mortgage marketplace."Homecomings Financial is one of the top capital providers to the mortgage marketplace, and one of the most creative. They brought us together to help generate new ideas for mortgage products and services they could provide that would help more people access the American Dream, says Werner. New World Mortgage, Inc. is the full service mortgage brokerage whose mission is to be a consumers financial advocate, not just a one-time lender. The Charlotte Business Journal reports that in 2003 New World Mortgage closed more loans than...
New World Mortgage CEO Among Top 40 Brokers At National Conference
Mortgage > New World Mortgage CEO Among Top 40 Brokers At National Conference
Are you searching for a mortgage in Memphis?
Are you searching for a mortgage in Memphis? Finding that perfect loan does not have to be a difficult task. You have many options to get a mortgage loan if you are living in Memphis. Basically there are 3 methods available to you. You can visit a local bank, a local mortgage broker or apply online.
Visiting a local mortgage broker or bank can provide you with a great way to get in touch with a local person to discuss in person what kinds of things you are looking for in your mortgage loan.
There are many different Memphis mortgage brokers here is a list of just a few.
? Acceptance Mortgage Company, (901) 327-7337 3540 Summer Av
? All Fund Mortgage, (901) 795-9250 5802 Winchester Rd
? American Mortgage Corporation, (901) 366-4913 1345 S Prescott Rd
? Bartlett Mortgage, (901) 257-7250 1020 Poplar Ave
? Capital Mortgage, (901) 547-0171 3181 Ridgeway Rd
? Carteret Mortgage, (901) 327-5835 3294 Poplar Av
? First...
Mortgage > Are you searching for a mortgage in Memphis?
Who Needs A Mortgage?
Who needs a mortgage? Well, nearly everyone in North America who plans to own their own home. Interestingly enough, when you look at the Latin roots of the word "mortgage", you'll find two terms ? mortuus which means death, and gage which means grip. So the term "mortgage" actually means death grip? pretty fitting when you think about it.
Nobody WANTS a mortgage, but most people do find themselves needing one in order to purchase a home. Very few people would consider themselves "mortgage experts" however ? and most of those who would call themselves that are the ones selling a mortgage?which means that they're probably not your best bet for solid advice.
When looking for a mortgage, many creatively named fees tend to show up, such as an "underwriting fee", a "document review fee", "loan preparation or origination" fee, and more.
These fees are unnecessary, and often not included in a mortgage broker's ?good faith' assessments beforehand.
...
Who Needs A Mortgage?
Mortgage > Who Needs A Mortgage?
To Refinance... or Not, That Is The Question??
What does it mean to refinance? Why would someone want to refinance? There are many cases when a person would refinance. When we use the term refinance, we are typically referring to a loan such as a car or house loan. It may also be a business loan. For the purpose of this article, we are going to discuss the home loan but most of the same rules of refinancing apply to other types of loans as well. Refinancing your home can be defined as the process of applying for a new mortgage, and using the money you receive to close out your older mortgage.
Many homeowners already take full advantage of this, because they are sometimes able to find a mortgage loan at a better interest rate. With the help of this, they can pay off their mortgage much sooner, and ultimately have a lower amount to pay back. Because a refinance plan essentially amounts to taking out a new mortgage and closing out the former mortgage, the steps involved resemble those involved in taking out your original mortgage....
To Refinance... or Not, That Is The Question??
Mortgage > To Refinance... or Not, That Is The Question??
Applying for a Home Mortgage Loan Online - The Pros and Cons
If you have considered applying for a home loan mortgage online, there are a few pros and cons to think about with getting a home mortgage loan online:Pros:1. The process of applying for an online home mortgage loan is very simple, unlike some lenders who operate in the ?real' world and ask for heaps of information.2. The fees, when applying for a home mortgage loan online, can be considerably cheaper than the mortgages in the ?real' world.3. Online home loan mortgages tend to offer a great variety of mortgage loan programs, including more flexible repayment terms and lower rates of interest.4. Online mortgages are usually easier for borrowers who have bad credit history to obtain.
Also, online mortgage loan websites do tend to offer more alternatives to those with a bad credit history.5. Normally you find out faster if your home loan mortgage application has been pre?approved if you apply online. This means you can move on and apply with other lenders faster, if you don't...
Applying for a Home Mortgage Loan Online - The Pros and Cons
Mortgage > Applying for a Home Mortgage Loan Online - The Pros and Cons
Second Mortgage Loans
A second mortgage is a loan that is subordinate to another loan taken against the same property. They are called subordinate in the sense that if the loan is defaulted, the first loan gets paid off first before the second one. In such cases of default, any remaining money will be used to pay off the second mortgage after clearing the first.
The second mortgages are therefore riskier for the lender. Thus, second mortgage loans have a higher interest rate. They also carry closing costs and points that make them more expensive.
There are different types of second mortgages. In the most common type, the borrower takes loan for only the actual equity. For example, if a property is valued for $75,000 and if the owner has availed a first mortgage for $50,000, it is easy to secure a second mortgage for $25,000.
A line-of-credit second mortgage is another type in which the borrower applies for a loan but does not avail himself of it immediately...
Mortgage > Second Mortgage Loans