"You can map your life through your favorite movies, and no two people's maps will be the same."Mary Schmich
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Debt Consolidation Mortgage Loans - Using Home Loans To Reduce Debt
Excessive debts cause a lot of worry and anxiety. Many people hope to become debt free. However, earning enough money to care for daily living expenses, while paying down credit card balances is challenging. There are options available to those burdened ...
Home Equity Loans Without Perfect Credit - What To Expect
Getting approved for a personal loan with recent or past credit problems may pose a problem. Because of credit blemishes, most lenders are hesitant to offer money to those with a low credit rating. Thus, acquiring funds for large expenses or emergencies ...
Secured Loan Debt Consolidation
Secured loans make your creditors feel more secure about loaning you money. When someone takes out a secured loan, that simply means there is collateral to back up the money they borrowed. This could be a car, or more commonly, a house. There are pros and ...
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So...you're about to buy a property and need a mortgage... Where do you begin?
Whether you are a first home buyer, have bought and sold several times, are re-financing, seeking an equity loan, or even a reverse motgage - there are a lot of thing to consider...
Do you choose fixed rate, variable rate, adjustable rate - or interest only. Rates, fees, costs - can all vary.
Let's have a look at the differences:
Fixed Interest Rate - usually fixed for the life of the mortgage, say 15-30 years, regardless of increases or decreases in market rates. This type of mortgage is ideal for those on a budget - as you always know what your repayments are.
Adjustable (Variable) Interest Rate - this type of mortgage allows the interest rate to be adjusted according to the current market rates -usually adjusted at the end of pre-determined periods. These tend to have lower monthly payments and are more flexible than fixed.
Balloon Mortgage - this is fixed amount payments for a period of time and then one large payment (balloon) towards the end of the term.
Graduated Payment Mortgage - this is where the payments start off small and gradually increase.
Interest Only - this type of mortgage is usually only for a specified time - where interest only is paid - so the principal is not reducing. Usually only used for a short time, or to finance a second property.
Second Mortgage - this is based on the amount of equity you have in your home. Usually used for home renovation, to consolidate debt or to purchase a second property. Usually set payments at a fixed interest rate. Be aware that interest rates are usually higher.
Home Equity Mortgage - this is borrowing against the equity in your home. It is often used to finance home renovations. Interest rates can vary, as can the fees and term - it is a very competitive market - so do your homework. This loan can have tax advantages - however, your home is up as collateral.
Reverse Mortgage - also known as 'equity release'. This is for seniors to convert the equity in their home to cash. Repayments are not required until they permanently move, sell, die or reach the end of the loan term.
About the author:
Gay Redmile is the webmaster of several finance and investment sites. Having purchased her own homes and investment properties she understands the importance of securing the right mortgage. Visit her site at http://www.mortgageshomesite.com for further information.
Written By: Gay Redmile
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Worst Small Towns To Own A HomeForbes, NY - 3 hours agoThe data show areas with homeowners spending the greatest portions of their income on monthly owner costs, including mortgages, home equity loans, ... |
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