Tuesday, October 7, 2008
Saturday, October 4, 2008
Save Thousands On Your Mortgage
Most people are accustomed to making one mortgage payment each month, usually on or about the 1st day of the month. Did you know that you can save thousands of dollars over the life of your mortgage by making one-half of your payment every two weeks instead of your whole payment once per month? It sounds simple and it is. It's called bi-weekly mortgage payments.
When you pay your mortgage once per month, you'll make 12 payments during the year. By paying your mortgage every two weeks, you'll make 26 bi-weekly payments or the equivalent of 13 monthly payments. You'll be making one extra monthly payment per year which shortens the term of your mortgage and saves you thousands of dollars.
The savings using a bi-weekly payment schedule can be substantial. Assuming a $200,000, 30-year mortgage at 6.5%, your savings would total over $60,000 and the term of your loan would be reduced by six years.
Many financial institutions offer bi-weekly mortgage payments if you ask about them. While an extra mortgage payment each year may sound like a lot, when you consider that most people get paid every two weeks, it's an easy way to reduce your mortgage quickly.
Call your credit union or bank about bi-weekly mortgage payments.
John Wagner owns and operates several online businesses including financial web site MoneyCentralUSA, http://www.moneycentralusa.com Learn more about his new ebook "Money Secrets banks Don't Want You to Know: http://www.moneycentralusa.com/ebook.com
Hospital in Tennessee Thailand HotelsFriday, October 3, 2008
Payment Option Arm Negative Amortization Mortgages How Do These Refinance Loans Work
A payment option ARM is an adjustable rate mortgage with a low initial monthly payment that will increase each year for the first five years. Some banks, like World Saving Bank, call these "Pick a Payment" mortgages because they offer payment options to help you budget your monthly cash flow. These payment option mortgage loans are different and a bit more complex than other products, because you can choose the payment you wish to make each month. Some of these payment options involve paying less than the interest, which means an increasing mortgage balance instead of the principle being paid down. There are inherent risks to this, but you have more flexibility and they may be a good decision if your home equity increases faster than the negative amortization.
A payment option ARM gives you these monthly payment choices:
· Principal & Interest (Fully Amortized Payment )
· Interest Only
· Negative Amortization (Paying less than the interest)
· Option ARM MTA
· Option ARM COFI
The benefits of an option ARM are low payments and the fact that rates and payments may go down if rates improve. You may also qualify for higher loan amounts and there are no balloon payments.
The risks however are higher with an option ARM than with many other loans. John Dugan, the head of the Office of the Comptroller of Currency, which regulates financial institutions, said in a recent speech before the Consumer Federation of America. "The fundamental problem with payment option ARMs, other than the growing principal balance due to negative amortization, is payment shock." Your payments may change over time and there is a potential for higher payments if rates increase.
You also will have more difficulty getting a second mortgage behind negative ARM loans. If you are hoping to use your home as a source of equity, you may want to consider a standard variable rate mortgage or a fixed-rate mortgage. This way you will be building equity that can be used for a credit line or other secured loan for improvements or even debt consolidation.
An option ARM can be a confusing mortgage and you may want to read as much literature on it as you can. Washington Mutual mortgage has some more complete explanations on their website. wamuhomeloans.com With a little bit of reading, you can decide if the option ARM is right for you.
Rebecca is a respected writer and article contributor to the Desert Magazine and Los Angeles Times. Please visit these additional resource websites: To get a free loan quote for a 125 home equity loans for people with all types of credit, please check out the special loan offers for lower payments. If you need more loan advice about negative amortization loans, take a look at the flexible programs offered for Payment Option ARM Mortgage Refinancing.
For the latest interest rates for fixed rate mortgages and interest only credit lines, please visit the online resources at BD Second Mortgage & Equity Loans.
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Reverse Mortgages For Seniors
If you are at least age 62 and are looking to supplement your income, a reverse mortgage could be your answer. Here is what you need to know in order to decide if a reverse mortgage is the right choice.
Reverse mortgages are an often misunderstood method of borrowing against equity in your home. Think of this type of loan as a regular mortgage turned upside down; instead of you paying the lender every month, the mortgage lender pays you.
Because the mortgage lender makes payments to you each month, the equity you own in your home shrinks. Reverse mortgages are an effective way to spend down equity in your home. The balance of the reverse mortgage becomes due to the lender when you move, sell the property, or die. When one of these events occurs your family can pay back the loan, or the lender will sell the property to pay off the loan.
The eligibility requirements for a reverse mortgage are simply that you are 62 years of age or older, and that your home is your primary residence. You can even use the reverse mortgage to pay off your existing mortgage to increase your monthly cash flow. The amount you will receive depends on a number of factors including your homes value, the amount of equity you own, and the interest rates and closing costs charged by the lender. Reverse mortgages can be disbursed as a lump sum, fixed monthly payments, or an equity line of credit.
You can learn more about your mortgage options including common mistakes to avoid by registering for a free mortgage guidebook.
To get your free mortgage guidebook visit RefiAdvisor.com using the link below.
Louie Latour specializes in showing homeowners how to avoid common mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing: What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.
Claim your free guidebook today at: http://www.refiadvisor.com
Hospital in Tennessee Thailand HotelsWednesday, October 1, 2008
Mortgage Loans Lose Your Private Mortgage Insurance
If you are a homeowner that was required to purchase Private Mortgage Insurance as a condition of approval on your loan, you are not required to carry this insurance forever. There are steps you can take and laws to protect you from paying too much for this useless insurance. Here is what you need to know about your Private Mortgage Insurance.
Homeowners that purchase homes with less than twenty percent down may be required to purchase Private Mortgage Insurance. This insurance protects the mortgage lender from certain losses in the event of foreclosure. Private Mortgage Insurance does absolutely nothing for the homeowner except drive up their monthly mortgage payment. Fortunately, the Homeowners Protection Act of 1988 protects homeowners from the abuses of Private Mortgage Insurance by establishing rules lenders are required to follow regarding cancellation of these polices. If you have a VA or FHA mortgage however, this law does not apply to you.
If you were required to purchase Private Mortgage Insurance after July 29th of 1999, your insurance will be terminated when you have 22% equity in your home. This 22% is based on the original appraised value of your home with the condition that all of your mortgage payments must be current. You do not have to wait until you have 22% equity; you can request that your policy be cancelled when you have 20% equity if your mortgage payments are current.
Private Mortgage insurance is expensive; it is in your best interest to make all of your mortgage payments on time so your policy can be cancelled early. To learn more about saving money on your mortgage and avoiding common homeowner mistakes, register for a free mortgage guidebook.
To get your free mortgage guidebook visit RefiAdvisor.com using the link below.
Louie Latour specializes in showing homeowners how to avoid common mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing: What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.
Claim your free guidebook today at: http://www.refiadvisor.com
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