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mortgage

Debt

What Is A Mortgage Calculator?

House hunting can be a lot of fun and you may get caught up in the excitement of looking at a variety of homes and dreaming about what your life could be like if you owned one of them. Before you get too excited, though, it is important to do some number crunching to see how much house you can really afford. Forexample, the Halifax mortgage calculator is worth taking a look at. It is quick and easy to use and within a couple of minutes you will have a better understanding as to what types of mortgages are available to you. It will also help you to discover what type of mortgage you want.

Things to pay attention to when using a mortgage calculator:

Fixed or Variable Rate

Remember, not all mortgages are the same. There are many different types available to suit various needs. For instance, you may decide you want a fixed rate mortgage so you don’t have to worry about interest rate fluctuations. Alternatively, you may decide a variable rate works better for you because you predict interest rates will be low for a long time.

Length of Term

How long do you want your mortgage for? Do you want a 5 year term or just a 1 year term because you think you might be selling and moving within a short time of purchasing the home? A very popular term length is 5 years but people have their reasons for going for shorter terms such as if there is a much better rate for a shorter term, etc.

July 10, 2013

Debt

5 Tips For Minimizing Mortgage Debt

Mortgage debt can be one of the biggest financial burdens. Right now, people owe over 7 trillion dollars in mortgage debt. While the debt problem is steadily waning as we slowly climb out of the last economic crash, there are still millions of people flailing to get out of the deep end. For many, there is no end in sight as to when they will be pulled out. The government is trying to come up with relief efforts to alleviate people’s debt as a result of the housing bubble, but most financial analysts are saying it is up to individuals to do their best to minimize their own debt.

Here are 5 tips for minimizing mortgage debt:

Remortgage. When you apply for a loan with a lender and get approved for a mortgage, you are usually set up with an introductory rate, which usually has much lower interest rates. However, most people don’t realize that around the one-year mark your lender automatically reverts your mortgage to the standard rate, which means higher interest rates and thus a bigger mortgage debt. If this happens or you expect it to happen, see if you can negotiate with your lender on a more agreeable rate – they might even lower it.

Find another lender, pay back more capital, and build more equity in your property. According to a recent article in a lending expert blog, more and more people are finding it easier to shop around for another lender that has more agreeable rates. One of the reasons why people’s mortgage debts are so high is because the interest rates are making it harder and harder to pay back their loans. However, if you find another lender with lower rates, you can effectively be paying more of your loan off and swimming further and further out of debt.

June 14, 2013

Debt

Smart Mortgage Moves For 2013

Do you have a mortgage? Are you looking for ways to save a little bit of money off your current mortgage? Well, the nice thing about 2013 is that you can save a lot of money off your current mortgage by taking a look at what is out there. A lot of people assume that just because the housing market is towards the bottom that it doesn’t make any sense to buy right now. Honestly, now is the time to buy a house if you can afford it.

So, what are some of the smart mortgage moves that you should be making in 2013?

The first thing that you need to understand is that the interest rates on mortgages are the lowest that they have ever been. What this means to you is that you should be doing everything in your power to get a mortgage today. A lot of people think that they will have time in a year or two to get their home but the truth is that the interest rates are only this low to help get more people to buy a house. Once people start buying more houses and the real estate market returns to where it once was, then the interest rates will return to where they once were as well. It is because of this that you should take full advantage of the interest rates while they are so low.

May 21, 2013

Debt

Should You Attempt To Pay Off Your Mortgage Early?

There are many pros and cons of paying off your mortgage early. Many homeowners would jump at the chance to pay off their mortgage if they could, but there are often many unforeseen circumstances if they do, like increased taxes and expenses. However, if you only have a few mortgage payments left it might be worth it to get it over and done with, because of the accruing interest it can put your last mortgage payment further and further away. While the homeowners market is still better than the renters market, it is important to know where you stand before you pay off your mortgage early.

For one, you could save a lot of money. A mortgage is just a fancy banker name for a home loan. With any loan there will typically be interest rates until you can pay it back in full. This is a clever way to adjust for inflation, which is important when it comes to a mortgage, because you will be making payments over a long period of time. If you pay your mortgage off early you could be saving a few hundred thousand dollars just in interest rates alone. Usually this is only worth it when you are about 10 years away from the end of a 30-year loan.

Next, by effectively getting rid of your mortgage payments you will have a lot less to pay for in terms of living expenses. This can give you more room to pay for things like vacations and other luxuries that you otherwise couldn’t afford. Or you can be smart with the extra money and invest it in the stock market or in another property and rent it out. When it comes to having extra money, it is always about finding a way to make it work for you.

May 15, 2013

Shopping

Purchasing A Home – Is 2013 The Time To Buy?

By now you have probably heard about all the people looking to buy houses. The reason you are hearing all of these rumors is because people want to take advantage of the low interest rates on mortgages at the moment. A lot of people assume that they will not be able to get a house later on down the road because of the interest rates going up; however, that is not true.

What you need to understand is that if you can buy a house in 2013, then you should go for it. The reason I say this is because the interest rates are so low that they will not likely be this low again anytime soon, the housing market has hit the bottom, so the prices won’t be this low for a while either, and there are still many tax benefits for buying a house as opposed to renting one. Just know that 2013 is a great time to buy a house, but if you don’t have the money or the income, then it just doesn’t make financial sense.

April 18, 2013

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