Mortgage : Home Loans : Refinance : Home Equity Loans

By

Copyright 2006 Geoff Morris

Imagine if there was a way that could help you could reduce the term of your mortgage by up to Five Years? Just think - if you could reduce the term of your mortgage by up to five years earlier, then you could even retire earlier, or enjoy 5 years of better holidays, better cars…

What would you do with this advice- ignore it - and lose the chance to reduce your interest paid to those greedy Banks over a 25 year period - or grab something back for yourself?

What if all you had to do was to pay half your mortgage bi-weekly (fortnightly to our UK cousins) - and all these benefits would be yours…

Now, doing the math for bi-weekly mortgages might be too much of a hassle for the regular home buyer, but all a fortnightly mortgage is, is actually just your normal mortgage payment cut in half. Every other week, you pay one half of your normal mortgage payment.

Let

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For additional Mortgage Refinancing information
and resources visit Mortgage Refinancing.
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By Ligroy Jonsey

You can save a significant amount of interest on your loan by reducing the time to pay it off. The reason that mortgage loans have long terms (often 25 or 30 years) is to stretch out the cost so as to reduce the monthly payment. However, a main drawback of a long-term loan is that the interest paid over the life of the loan may be some three or more times the amount actually borrowed as stated on www.SmartRefinance.net

There are a number of types of loans that provide rapid amortization. The easiest to arrange is a 15-year mortgage. This will significantly increase each and every principal and interest (P&I) payment, typically by 20%. A biweekly mortgage is another approach. The payment required is one half of a monthly payment for a standard mortgage. This amount is paid every two weeks. Because there are 26 2-week periods in a year, it is similar to making 13 monthly payments in a year. However, such payments will significantly shorten the amortization period, although it may adversely affect affordability, especially if you are stretching the budget to buy the home. It is especially useful, though, for people who are paid every week or every two weeks, but not for those paid monthly or even twice a month (which is not quite the same as every two weeks).
An alternative is to arrange a 30-year loan to keep the payments at an affordable level. Then, you can pay more each month or in a lump sum when you have some extra cash. Keep this important caveat in mind: if you encounter hardship after making extra payments, your lender may not be amenable to reducing or skipping your future payments. You must still pay regularly.

Before prepaying part of a loan, be certain that your lender will cooperate by applying the extra payment to the current principal balance. Some lenders apply prepayments to the escrow account or to the last required payments unfavorable procedures for a borrower. Fortunately, some lenders make it easy to apply advance payments to the principal by providing a space on the coupon book so you can indicate the application of an extra payment. It works like this: the principal and interest (P&J) portion of your payment (don’t count taxes and interest) has been financially engineered to pay off (or amortize, a fancy word for loan reduction) the loan over a certain period, with interest due on the unpaid balance. In a long-term mortgage loan, most of the payments in the early years are for interest, with a small amount for principal reduction (amortization). As the loan is reduced, less of the P&I payment goes for interest and more is used to reduce the debt. Suppose you make an extra payment to reduce the principal. Thereafter, future interest will be less, so more of the payment will reduce the principal, and hasten the reduction of the debt. Any advance payment effectively earns compound interest at the same rate as the mortgage bears, and the advance payment, plus earnings based on it, will shorten the loan term.
Upon making an extra payment, you might want to know exactly how long the new term will be. You can use the following tables to figure this out. However, you will need to know the current principal balance, P&J payment, and loan interest rate.

This article may be published freely as long as you keep the below credits:
Article by (Jack Fredman). For more info on Finance and Refinancing Mortgage loans, visit www.SmartRefinance.net

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For additional Mortgage Refinancing information
and resources visit Mortgage Refinancing.
(http://www.refinance-refinance.net)
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By Charles Amith

What Is An Adjustable Rate Mortgage (ARM)?

An adjustable rate mortgage is certain type of home mortgage that has a variable interest rate. Compared to a 30 year fixed mortgage, the borrower’s payment is considerabely less. This is due to the transfer of risk from the lender to the borrower.

(Article continues below)

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The Structure Of An ARM

There is a wide variety of adjustable rate mortgage

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and resources visit Mortgage Refinancing.
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By Kate Ross

Mortgage Refinance Definition
Mortgage refinance implies getting a loan in order to pay off an outstanding loan. Both loans will be secured with the same asset thus the repayment is done immediately and the loan amount can

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For additional Mortgage Refinancing information
and resources visit Mortgage Refinancing.
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By Jasmine Macdonald

One mistake that many new home buyers forget to do is budget for the one-time closing costs. In an typical home purchase, closing costs amount to about 2-5 percent of the price of the property. These closing costs are in addition to your down payment.

Here is a list of some of the closing costs you can expect to pay on your new home.

1. Loan fees and Charges: Your lender will charge you for all types of things such as: appraising the property, preparing loan documents, obtaining a copy of your credit report, and processing your loan. You may also be charged a fee for 1 to 2 percent of the loan for prepaid interest charges called Points. Warning: if you have to pay “points” on your mortgage, this will cost you thousands of dollars.

2. Escrow Fees: These costs cover the preparation and transmission of all the money and documents related to the purchase of your home. The escrow fees will cost you anywhere from several hundred to over a thousand dollars.

3.Title Insurance: This insurance protects you and the lender against the risk that the person selling the home does not legally own it. Luckily you only have to pay the premium on this insurance one time. This insurance should cost you between three hundred to a thousnad dollars depending on the value of your home.

4. Homeowner’s Insurance: Most lenders will require that you pay the first year premium on your home owners insurance at the time of closing.

5. Property Taxes: If the sellers of the home have paid any property taxes in advance, you may have to reimburse them. For example, the closing date on your home is Nov 1 and the sellers have already paid the taxes on the home until the end of the year, you would have to reimburse them for the taxes they paid from Nov 1 until Dec 31.

6 Property Inspections: Although it is not absolutely required to have your property inspected, it is highly recommended that you d!
o so. Yo
u certainly do not want any surprises after you move into your new home. This inspection should cost you anywhere between two to four hundred dollars.

7. Private mortgage Insurance (PMI) If you make a down-payment of less than 20% of the purchase price of your home, your lender will probably require you to take out Private Mortgage Insurance. This insurance will protect the lender in case you default on your mortgage. This should cost you a minimum of several hundred dollars. This insurance will be a yearly cost until you have 20% equity in your home.

8. Prepaid Loan Interest: At the closing, the lender will charge you interest on your mortgage to cover the interest that accrues from the day the loan is funded up to the day your first mortgage payment is due. This interest payment will vary depending on the size of your mortgage. The sooner you make your first mortgage payment the less interest you will have to pay.

9. Miscellaneous Fees: By now you are probably thinking that your mortgage lender has already charged you for everything but the kitchen sink. But wait there are a few more little pesky items to throw in.

We don’t want to forget the fees to record your mortgage and deeds at the county courthouse, the Notary Fees, or the express mailing or courier fees. These little fees should cost you another $100-$200.

If you cannot afford to pay all of your closing cost fees, speak to your lender as he/she will probably allow you to finance these charges. It is now common to roll the closing costs into into your monthly mortgage payments.

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For additional Mortgage Refinancing information
and resources visit Mortgage Refinancing.
(http://www.refinance-refinance.net)
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