Source: Katrina Rowlands, accredited mortgage consultant, Mortgage Success
The first time many borrowers hear about exit fees is when they're hit with them. Perhaps they've had their loan for a few years, noticed the competitiveness of their existing loan start to slide and have determined that better deals are available.
This could mean a move from a fully featured loan (with features never fully used) to a no-frills loan, or a move from a basic loan with minimal features to one with every feature (with the rationale that the new loan will better suit the lifestyle of the borrower). Some borrowers believe that chasing the lowest interest rate each year will save money. Once you factor exit fees into the equation, you can usually forget this strategy!
The biggest problem with many loan contracts is a lack of transparency on all the fees, costs and interest payments that you are, or could be, liable for. By the time exit fees are levied it's too late, so the best advice is to understand all the costs behind a loan before signing.
Going for the one with the cheapest upfront fees or lowest initial interest rates isn't always going to pay dividends, particularly if you aren't sure what your plans are for the near future.
What are exit fees?
Exit fees come in various shapes, sizes and disguises. You need to learn to read the small print before signing and identify anything which could cost you money down the line should you want to refinance or pay off the loan.
'Deferred establishment fee' is a typically broad and vague term that can cover a multitude of exit costs. Others include early redemption charges, administration charges, sealing fees, deeds release fees, clawback charges and discharge fees. There may also be clauses for rebates of initial incentives, eg any cash-back advanced, or the value of free legal or valuation fees.
Any fee jargon like this in the small print should set off your alarm bells and you should ask the lender for clarification, preferably in writing, of exactly what it might cost you based on your specific situation. Don't accept a vague explanation. Ask for specifics and figures until you are satisfied that you completely understand the implications of early exit from the loan. Planning is the key
Going into so much detail on every loan may seem arduous, but making a plan for your financial near future can help you identify which loans will suit you best. You will never be able to escape exit fees entirely, but committing to keeping the loan for say five years might mean you can take a loan that has high penalties for breaking within the first five years, but much lower costs after that. It may also help you to find a better interest rate or upfront cost package. Katrina Rowlands, mortgage consultant with Mortgage Success, says making a plan and discussing it with your broker is key to this.
"Borrowers should be made aware of fees, charges and future borrowing costs of the loan, as far as can be ascertained," she says. "Certain lenders do have standard deferred establishment fees between one and three years.
"There needs to be a clear financial plan in order to make an informed decision. I will always ask how long they intend to keep the property and will ask their intentions for the next three years. This can make a big difference in the product they use."
Tapping your broker's expertise
Mortgage brokers have been through the lenders' documents many times before. They know the jargon and terminology, where to look for the tricky clauses and the right questions to ask lenders.
This experience can be invaluable in getting the right loan and minimising any potential exit costs.
"Consumers are getting smarter and smarter, but some fees still need to be spelt out," says Rowlands. "There are many pitfalls. Sometimes lenders will still try and charge the exit fee, even if you refinance to a better deal with the same institution. A good broker will negotiate fees with lenders. They can be quite receptive, depending on competition. More and more are now focusing on retaining business. This means they are more likely to waive fees than in the past."
Australian exit fees are high
A recent study by global consulting firm Fujitsu has found that Australian mortgage fees are higher than most other comparative nations, including the UK, New Zealand and Canada.
Martin North, managing consulting director of Fujitsu Consulting, says Australian mortgage providers are charging consumers more to account for higher cost bases within their organisations, compared to those in other countries.
"We discovered that the total cost to consumers in terms of loan fees is higher in Australia. The level of profits made in the mortgage industry is in line with other players internationally, but higher fees and interest margins are needed to balance out higher costs."
North gives several examples of the reasons for higher costs.
"The commission paid to brokers in Australia is nearly twice as high as the UK. Also around 30% of loan applications need reworking in Australia, compared to 5% in the UK," says North.
He emphasises the growing trend for lenders to increase exit fees in order to compensate for reduced application fees. This creates a lack of transparency that has been dealt with by regulation in other countries.
"Upfront application fees are being replaced by less transparent exit fees. They are difficult to identify because they are contingent on events. If you cash in your loan early, you have to pay an exit fee on the loan, plus a discharge fee. You may also be required to pay clawback fees on commission for the loan and also to the broker."
North advocates a more transparent method to spell out exactly what exit costs you will pay. He points to the UK system where regulators are forcing lenders by law to spell out all potential costs on the loan document that then must be adhered to and cannot be changed.
"Regulators in the UK have started to impose strict disclosure regimes on lenders to stop them from specifying one level of discharge fees in the application form and changing that within the next two to three years," says North.
"All loan documents at point of sale should include a full specification of the exit fees that won't change. If you ask five Australian lenders about their exit fee process at present, you will get five different answers."
FIVE QUESTIONS TO ASK YOUR LENDER ABOUT EXIT FEES
1. Are there additional costs if I pay this loan out early?
2. Based on my situation, how much would those penalties be?
3. What sort of a timeframe do they apply to?
4. Under what circumstances would those fees apply?
5. Can I have all the fees and penalties for discharge put in writing?
Wednesday, November 21, 2007
Mortgage News : TOP 10 HOME BUYING MISTAKES TO AVOID
There are many mistakes which buyers naturally come across when purchasing a home, but they can be very easily avoided.
If you're thinking of seeking advice or doing it yourself, there are a few things you should be informed of before you waste valuable time and money.
01 Borrowing over your limit and not being ready for the buy
We've all had cases of 'eyes being too big for our pockets', but how big is too big when determining your borrowing capacity?
Arthur Fengitis, credit manager, Professional Mortgage Providers, says some homebuyers fall in love with a property before doing the figures, which often leads them into trouble.
"Sometimes they borrow beyond their means for their income, their outgoing expenses and their liabilities, and at the end of the day they won't have the money to repay that amount," he says.
Leanne Pilkington, general manager, Laing and Simmons, says this generally occurs with borrowers who are inexperienced. "It tends to be the people who are naturally impulsive - it's one thing when you're buying a frock, but it's another thing when you're buying a house," she says.
It's a great idea to have pre-approval for your borrowing capacity before beginning your search.
This way you've set yourself a limit and can't get into trouble if you sign onto a contract without the finance to afford it. This is something best discussed with your broker, mortgage manager or lender in order to set a realistic limit on your home buying adventures.
02 Sugar coating reality and a bad credit rating
Be honest with your credit rating, credit card debts and personal debts. If you attempt to fudge the truth, this sort of stunt can stay with you forever. In Australia, there are two major credit reporting agencies that record debts, and lenders consult these agencies before they complete your loan application.
A tarnished reputation can prevent you from owning your ultimate dream pad not once, not twice, but probably a few times over.
However, in saying this, you can still obtain a loan with a bad credit rating - talk to your broker for advice.
03 Assuming assets substitute your income
When considering how much your budget is for your new home, you must consider your borrowing capacity for your possible home loan. This figure is based on your income earning ability.
Mark Bouris, CEO of Wizard Home Loans, says this is where many people make a big mistake, believing that their income and their assets hold the same weight when applying for a mortgage.
"People often believe that a strong asset position can be a substitute for income when it comes to servicing a loan. But no matter what the strength of your assets, what really makes the difference is your capacity to repay the loan through a regular income," he says.
04 Choosing the wrong advisors
There's no doubt that today's property market is one complex cookie. Modern services bring many modern people in the know who make a living from offering advice.
Vendor's agents (the agent selling the home for the current owner) want to get the best possible price for their clients - so don't be taken for a ride.
The services of a buyer's agent or a property advisor may not be cheap (sometimes around 1% of the sale price of the home), but then again you're not getting cheap service; and the gamble might just pay off.
Depending on who's doing the advising, you might get professional opinions on the structure, age, surrounding and immediate areas, infrastructure and potential growth in price of your possible future home. Ultimately, these guys are professionals and can tell you whether the property as a whole should be given the thumbs up or thumbs down.
Be sure to select your mortgage broker, mortgage manager or lender very carefully, and look for someone who will meet your needs above everything else.
"People are keen to do deals to win customers, so be weary of that; the lowest rate is not always the best," warns Dean Mathieson, CEO, Professional Mortgage Providers.
05 Not understanding your mortgage options
Explore all of your options regarding home loans. Gone are the days when you had to save up for a deposit to get a home loan. These days you can take out 100% or a 106% of the value of the property - which means you don't have to spend years saving for a deposit before getting into the property market.
Keep in mind though, if you have less than 20% deposit there's generally a lenders mortgage insurance involved, adding further costs. This protects the lender, not you, and the less deposit you have, the higher the fee may be - so if you have a 20% deposit, use it.
06 Not taking advantage of the First Home Owner Grant
Not everyone is eligible for the First Home Owner Grant just because they are a first homebuyer, so explore this option before you buy. If you assume you have it in the bag you may fall short of over $7,000, making your affordable home unaffordable.
07 Underestimating the costs of purchase
Never underestimate the costs involved in buying a property. Remember to budget in the following when settling your finances.
Depending on the price of your future palace, the stamp duty may vary. In some states of Australia you may be exempt from paying stamp duty below a certain price bracket. In NSW however, once you reach the $500,000 mark, there are no exemptions.
08 Not adequately doing research or checking out the home first hand
The world may be your oyster, but if you don't want to fork out thousands of dollars for professional advisors, then the internet, dedicated research and good old fashioned haggling are just as good.
Make sure you check the following before you settle on a property, because in this case what you don't see will definitely hurt you.
09 Not understanding home loan repayment strategies
If you can afford to make more regular repayments on your home loan, go for it. With interest calculated daily and charged monthly, extra repayments will reduce your mortgage term and the interest paid on the life of the loan.
10 Buying for living - not investment
When browsing for an investment property you should be thinking of your prospective rental market needs and wants - not where you'd place your chiffonier or what you'd put on your feature wall. In this instance, a property advisor or real estate agent would be great at letting you know what the local renters have been asking for in a rental property.
This will ensure your property is distinguished among the rest and will guarantee a good investment stays that way. When emotions are involved, irrationality sometimes follows. This could mean dangerous results for both the inexperienced and experienced homebuyer.
Remember, don't get too upset if a bid falls through - there are plenty more fish in the sea.
If you're thinking of seeking advice or doing it yourself, there are a few things you should be informed of before you waste valuable time and money.
01 Borrowing over your limit and not being ready for the buy
We've all had cases of 'eyes being too big for our pockets', but how big is too big when determining your borrowing capacity?
Arthur Fengitis, credit manager, Professional Mortgage Providers, says some homebuyers fall in love with a property before doing the figures, which often leads them into trouble.
"Sometimes they borrow beyond their means for their income, their outgoing expenses and their liabilities, and at the end of the day they won't have the money to repay that amount," he says.
Leanne Pilkington, general manager, Laing and Simmons, says this generally occurs with borrowers who are inexperienced. "It tends to be the people who are naturally impulsive - it's one thing when you're buying a frock, but it's another thing when you're buying a house," she says.
It's a great idea to have pre-approval for your borrowing capacity before beginning your search.
This way you've set yourself a limit and can't get into trouble if you sign onto a contract without the finance to afford it. This is something best discussed with your broker, mortgage manager or lender in order to set a realistic limit on your home buying adventures.
02 Sugar coating reality and a bad credit rating
Be honest with your credit rating, credit card debts and personal debts. If you attempt to fudge the truth, this sort of stunt can stay with you forever. In Australia, there are two major credit reporting agencies that record debts, and lenders consult these agencies before they complete your loan application.
A tarnished reputation can prevent you from owning your ultimate dream pad not once, not twice, but probably a few times over.
However, in saying this, you can still obtain a loan with a bad credit rating - talk to your broker for advice.
03 Assuming assets substitute your income
When considering how much your budget is for your new home, you must consider your borrowing capacity for your possible home loan. This figure is based on your income earning ability.
Mark Bouris, CEO of Wizard Home Loans, says this is where many people make a big mistake, believing that their income and their assets hold the same weight when applying for a mortgage.
"People often believe that a strong asset position can be a substitute for income when it comes to servicing a loan. But no matter what the strength of your assets, what really makes the difference is your capacity to repay the loan through a regular income," he says.
04 Choosing the wrong advisors
There's no doubt that today's property market is one complex cookie. Modern services bring many modern people in the know who make a living from offering advice.
Vendor's agents (the agent selling the home for the current owner) want to get the best possible price for their clients - so don't be taken for a ride.
The services of a buyer's agent or a property advisor may not be cheap (sometimes around 1% of the sale price of the home), but then again you're not getting cheap service; and the gamble might just pay off.
Depending on who's doing the advising, you might get professional opinions on the structure, age, surrounding and immediate areas, infrastructure and potential growth in price of your possible future home. Ultimately, these guys are professionals and can tell you whether the property as a whole should be given the thumbs up or thumbs down.
Be sure to select your mortgage broker, mortgage manager or lender very carefully, and look for someone who will meet your needs above everything else.
"People are keen to do deals to win customers, so be weary of that; the lowest rate is not always the best," warns Dean Mathieson, CEO, Professional Mortgage Providers.
05 Not understanding your mortgage options
Explore all of your options regarding home loans. Gone are the days when you had to save up for a deposit to get a home loan. These days you can take out 100% or a 106% of the value of the property - which means you don't have to spend years saving for a deposit before getting into the property market.
Keep in mind though, if you have less than 20% deposit there's generally a lenders mortgage insurance involved, adding further costs. This protects the lender, not you, and the less deposit you have, the higher the fee may be - so if you have a 20% deposit, use it.
06 Not taking advantage of the First Home Owner Grant
Not everyone is eligible for the First Home Owner Grant just because they are a first homebuyer, so explore this option before you buy. If you assume you have it in the bag you may fall short of over $7,000, making your affordable home unaffordable.
07 Underestimating the costs of purchase
Never underestimate the costs involved in buying a property. Remember to budget in the following when settling your finances.
- Building and pest reports
- Valuation costs
- Application fee
- Solicitor's costs
- Stamp duty on properties and mortgage
- Transfer fees
- Council rates
Depending on the price of your future palace, the stamp duty may vary. In some states of Australia you may be exempt from paying stamp duty below a certain price bracket. In NSW however, once you reach the $500,000 mark, there are no exemptions.
08 Not adequately doing research or checking out the home first hand
The world may be your oyster, but if you don't want to fork out thousands of dollars for professional advisors, then the internet, dedicated research and good old fashioned haggling are just as good.
Make sure you check the following before you settle on a property, because in this case what you don't see will definitely hurt you.
- Check out the lighting and mood of the home, street and area at night
- Listen for noisy neighbours from outside the property
- Is public transport within walking distance?
- Does the local area have all your living and social needs?
- Research the area on property websites
- Research the three Ps (position, price and potential)
- Keep your eye out for information regarding trends in the area/suburb.
- Check out the local council's and services' websites - does your area have what you're after?
09 Not understanding home loan repayment strategies
If you can afford to make more regular repayments on your home loan, go for it. With interest calculated daily and charged monthly, extra repayments will reduce your mortgage term and the interest paid on the life of the loan.
10 Buying for living - not investment
When browsing for an investment property you should be thinking of your prospective rental market needs and wants - not where you'd place your chiffonier or what you'd put on your feature wall. In this instance, a property advisor or real estate agent would be great at letting you know what the local renters have been asking for in a rental property.
This will ensure your property is distinguished among the rest and will guarantee a good investment stays that way. When emotions are involved, irrationality sometimes follows. This could mean dangerous results for both the inexperienced and experienced homebuyer.
Remember, don't get too upset if a bid falls through - there are plenty more fish in the sea.
Position House on Lot with Future in Mind
Making the decision to build a new home is a big one and several things will require careful consideration before the first shovel of dirt is turned. Actually, the first things to consider are where you are going to build the home and the size of your lot. From there you can determine if the home plan you are thinking about will fit on the lot and what direction it will face.
If you already own the lot, you will be locked in to the size of the house you can place on it, but if the lot is large enough to hold the house of your dreams, there are considerations that can keep it from turning into a nightmare. The direction the house will face may be determined by the neighborhood or geographic considerations. For example, a steep hill at the back of the lot may prevent your garage from being situated there.
The direction in which your bedrooms will face is also important if there are concerns with streetlights or other structures. Most likely, you are not going to want your bedroom window looking into a neighboring house and your neighbor may not appreciate your loud workshop fronting their bedroom window. While many home plans are pre-designed, changes are possible for most plans or, better still, you can carefully select the plans that fit your lot and your neighborhood that will require the least changes.
If you are a fix-it type person and will be spending a lot of time in a workshop, you will want to plan the shop's location away from the bedrooms. Even if located in the basement, having your shop on the opposite side of the house will make more sense to those trying to sleep while you are working. Work with the architect and with the utility plans to make sure to plan ahead for specific electric or plumbing needs.
Christine Sears writes articles about architectural home plans, new home construction, floor plans, house plans, new construction financing, and more for The House Designers.
Tuesday, November 20, 2007
Refinancing Mortgage
Most people buy a home for very specific reasons. Those reasons typically have more to do with life situations and very little to do with market considerations. When you marry, begin planning a family, or look at retirement you might suddenly find yourself wanting to buy a home. Because of the importance of these life situations, you might pay relatively little attention to such things as the cost of borrowing. These things are often viewed as necessities at such times. That is why it is quite common for people to negotiate a mortgage as best they can then in a few years, find that loan rates have dropped considerably. Many home owners will accept the costs associated with mortgage refinancing in order to save themselves larger sums of money over the long term.
What Will Mortgage Refinancing Do for Me?
By refinancing your mortgage when rates have dropped more than a couple of percentage points you will be amazed at what you will save in interest costs. The effect this will have in reality can take several different tracks. The amount of interest charges you will save could allow you to pay more on the principle of the mortgage every month. This will allow you to pay your loan off sooner. Alternatively, with Mortgage Refinancing, you could choose to reduce your monthly payments. This will give you a bit more spending money each month. Still another option is to use the equity created by refinancing your mortgage to pay for home remodeling.
Learning About Mortgages
When you take out a mortgage, you are using your home as collateral against the loan. It is important that you are able to pay the loan back within the specified period of time. When you do this, you are building your credit, and with good credit anything is possible.
However, if you are not able to pay the mortgage lender back, whether through illness or loss of employment, most likely you will end up in a serious situation that can involve losing your home. It can be a very stressful time. there are steps that you can take to insure that you will not lose your home.
Perhaps the most important thing that you can do is to compare interest rate of different companies. One of the things that most people fall victim to is extremely high interest rates.
When you that you will be able to make the payments every month. Remember that if you fail to make even one payment, you could lose your home. it there is any doubt about the payments, you should consider finding another company that has repayment terms that you are sure you can handle.
If you are a novice, and are confused with the whole process, it may be in your best interest to consult a Mortgage broker or advisor. These are trained professionals who can assist you in every aspect of a mortgage loan. They can find you the best possible loan for your situation.
However, if you are not able to pay the mortgage lender back, whether through illness or loss of employment, most likely you will end up in a serious situation that can involve losing your home. It can be a very stressful time. there are steps that you can take to insure that you will not lose your home.
Perhaps the most important thing that you can do is to compare interest rate of different companies. One of the things that most people fall victim to is extremely high interest rates.
When you that you will be able to make the payments every month. Remember that if you fail to make even one payment, you could lose your home. it there is any doubt about the payments, you should consider finding another company that has repayment terms that you are sure you can handle.
If you are a novice, and are confused with the whole process, it may be in your best interest to consult a Mortgage broker or advisor. These are trained professionals who can assist you in every aspect of a mortgage loan. They can find you the best possible loan for your situation.
Monday, November 12, 2007
Mortgage Advisers and Overseas Property
The foreign property market has become an obsession with British investors in recent years and mortgage advisers have reaped the benefits.
While France, Spain, and Portugal have long been favourites with retirees and investors alike, new markets in Eastern Europe have emerged and tempted many Brits.
Mortgage advisers are in an excellent position to capitalise on this trend by offering their clients advice on foreign mortgages in the emerging property markets.
Many lenders now have the infrastructure in place for UK-based mortgage advisers to assist their clients in obtaining finance on foreign property purchases as far away as Australia.
Setting up as a foreign mortgage adviser in addition to local mortgages is an excellent way of adding a new income stream to a mortgage adviser’s business.
However, depending on the specific market, buying foreign property can be dangerous. Many foreign countries do not have robust legal systems in place for buying and selling property and this can present risks that are not present in the UK.
Mortgage advisers who wish to deal in foreign mortgages should therefore use all available resources to familiarise themselves with the legal and conveyancing systems in the overseas property markets in order to provide their clients with the best service possible.
Many horror stories have emerged from people who have lost money to unscrupulous developers or estate agents.
However, this should not be a deterrent. Previously problematic markets such as Bulgaria have improved in recent years and thousands of Brits have already purchased investment properties there.
They key to success is thorough research and good advice. This is where mortgage advisers can help the most. British residents who are keen to invest in overseas markets may not have the means to travel there and conduct research themselves.
Mortgage advisers should be able to build up contacts in the foreign property markets and leverage these to offer clients a robust foreign mortgage service.
While France, Spain, and Portugal have long been favourites with retirees and investors alike, new markets in Eastern Europe have emerged and tempted many Brits.
Mortgage advisers are in an excellent position to capitalise on this trend by offering their clients advice on foreign mortgages in the emerging property markets.
Many lenders now have the infrastructure in place for UK-based mortgage advisers to assist their clients in obtaining finance on foreign property purchases as far away as Australia.
Setting up as a foreign mortgage adviser in addition to local mortgages is an excellent way of adding a new income stream to a mortgage adviser’s business.
However, depending on the specific market, buying foreign property can be dangerous. Many foreign countries do not have robust legal systems in place for buying and selling property and this can present risks that are not present in the UK.
Mortgage advisers who wish to deal in foreign mortgages should therefore use all available resources to familiarise themselves with the legal and conveyancing systems in the overseas property markets in order to provide their clients with the best service possible.
Many horror stories have emerged from people who have lost money to unscrupulous developers or estate agents.
However, this should not be a deterrent. Previously problematic markets such as Bulgaria have improved in recent years and thousands of Brits have already purchased investment properties there.
They key to success is thorough research and good advice. This is where mortgage advisers can help the most. British residents who are keen to invest in overseas markets may not have the means to travel there and conduct research themselves.
Mortgage advisers should be able to build up contacts in the foreign property markets and leverage these to offer clients a robust foreign mortgage service.
Interest Only Mortgages Under Attack
With home affordability at an all time low, the number of UK mortgages that are borrowed on an interest only basis has risen steadily over the past few years.
This is because interest only mortgages are cheaper to maintain in the short-term as the monthly repayments are smaller. With mortgage expenses accounting for more than a third of the average UK household budget, any opportunity to reduce the cost is welcome.
However, the downside to an interest only mortgage is that the capital portion of the loan is not being reduced during its term. This means that the borrower must repay the loan balance when the term is complete.
While this may seem harmless, many borrowers who opt for interest only mortgages have not been saving enough money to pay off the balance. The industry regulator, the FSA, has become concerned that up to a third of all borrowers who have an interest only mortgage are not saving for the impending repayment of the loan balance.
The FSA has become concerned enough to bring in new regulations that are designed to force lenders to only issue such mortgages where there is proof that the borrower is operating a repayment vehicle for the capital value of the loan.
They will primarily be looking for situations in which the borrower is operating a personal equity plan (PEP) or an Individual Savings Account (ISA) specifically to account for eventual repayment of the loan balance.
However, borrowers must be aware that simply claiming they will establish such a facility will not be proof enough. They will need to provide evidence to the lender that these financial arrangements are in position before the loan can be approved.
Whether or not the new rules have an impact on the overall number of borrowers who opt for an interest only mortgage remains to be seen.
This is because interest only mortgages are cheaper to maintain in the short-term as the monthly repayments are smaller. With mortgage expenses accounting for more than a third of the average UK household budget, any opportunity to reduce the cost is welcome.
However, the downside to an interest only mortgage is that the capital portion of the loan is not being reduced during its term. This means that the borrower must repay the loan balance when the term is complete.
While this may seem harmless, many borrowers who opt for interest only mortgages have not been saving enough money to pay off the balance. The industry regulator, the FSA, has become concerned that up to a third of all borrowers who have an interest only mortgage are not saving for the impending repayment of the loan balance.
The FSA has become concerned enough to bring in new regulations that are designed to force lenders to only issue such mortgages where there is proof that the borrower is operating a repayment vehicle for the capital value of the loan.
They will primarily be looking for situations in which the borrower is operating a personal equity plan (PEP) or an Individual Savings Account (ISA) specifically to account for eventual repayment of the loan balance.
However, borrowers must be aware that simply claiming they will establish such a facility will not be proof enough. They will need to provide evidence to the lender that these financial arrangements are in position before the loan can be approved.
Whether or not the new rules have an impact on the overall number of borrowers who opt for an interest only mortgage remains to be seen.
Benefits of Using Mortgage Calculators
Purchasing a home can be a difficult process especially for first-time home buyers. Not only does it take knowledge of the housing market and how it works, but it also can be a lengthy process with several steps along the way. Of course, nothing is more depressing for individuals than to get halfway through the process only to be turned down for a home mortgage. This is often due to the fact they don't have the financial resources or credit to get the size of mortgage they need to cover the cost of the home they want to purchase. Individuals and families can prevent this from happening to them by utilizing mortgage calculators.
There are many benefits to using mortgage calculators. Many people benefit by using them to figure out what they can expect their monthly mortgage payment to be on a house. They can go around to various open houses and see what is available. Afterwards they can then go home and run the different prices of each home they liked through a mortgage calculator to determine how much they would pay each month. This helps them to know what houses are affordable given their financial resources.
Another benefit of using mortgage calculators is the fact that individuals and families can estimate how much they will spend on interest. Different mortgages offer different interest rates and different payoff periods. Individuals can plug in different interest rates and payoff periods to see how it affects their monthly payment. By using a mortgage calculator, individuals or families may realize they can cut their 30 year mortgage to 25 by increasing their monthly payment by $150 every month.
Many mortgage calculators also provide consumers with the option to compare costs for buying a home or renting it. Depending upon your age, lifestyle, where you live and other factors it can be more of an advantage for you to rent. This is particularly true if you are someone who isn't interested in remaining in one location for many years. A mortgage calculator allows you to quickly see if renting or buying is the better option for you.
The fact mortgage calculators are provided to individuals and families for free is also beneficial. Lending companies and organizations want individuals to be successful in purchasing their new home, thus they provide them with a mortgage calculator to help them find out what they can afford. Several businesses offer a mortgage calculator for you to use for free, and you can find one by simply searching for it on the Internet.
As you can see, there are many benefits to using one of the many mortgage calculators available on the Internet and through financial organizations. No one wants to have their new home under foreclosure. You can prevent this from happening to you by using a mortgage calculator to ensure you can afford the house you purchase. By doing so you can enjoy your home for many years to come without having to worry about how you're going to pay for it.
There are many benefits to using mortgage calculators. Many people benefit by using them to figure out what they can expect their monthly mortgage payment to be on a house. They can go around to various open houses and see what is available. Afterwards they can then go home and run the different prices of each home they liked through a mortgage calculator to determine how much they would pay each month. This helps them to know what houses are affordable given their financial resources.
Another benefit of using mortgage calculators is the fact that individuals and families can estimate how much they will spend on interest. Different mortgages offer different interest rates and different payoff periods. Individuals can plug in different interest rates and payoff periods to see how it affects their monthly payment. By using a mortgage calculator, individuals or families may realize they can cut their 30 year mortgage to 25 by increasing their monthly payment by $150 every month.
Many mortgage calculators also provide consumers with the option to compare costs for buying a home or renting it. Depending upon your age, lifestyle, where you live and other factors it can be more of an advantage for you to rent. This is particularly true if you are someone who isn't interested in remaining in one location for many years. A mortgage calculator allows you to quickly see if renting or buying is the better option for you.
The fact mortgage calculators are provided to individuals and families for free is also beneficial. Lending companies and organizations want individuals to be successful in purchasing their new home, thus they provide them with a mortgage calculator to help them find out what they can afford. Several businesses offer a mortgage calculator for you to use for free, and you can find one by simply searching for it on the Internet.
As you can see, there are many benefits to using one of the many mortgage calculators available on the Internet and through financial organizations. No one wants to have their new home under foreclosure. You can prevent this from happening to you by using a mortgage calculator to ensure you can afford the house you purchase. By doing so you can enjoy your home for many years to come without having to worry about how you're going to pay for it.
Choose the Reverse Mortgage Lender With Care
Old age comes with lots of problems and all we can do to take care of all these problems is to make sure that we are financially prepared to deal with that. When a person is young he has all the energy and potential to earn money, but as they start approaching the retirement age money crunch can hit them hard. It is understood that once the regular flow of income stops after your retirement, you will need some additional finance to take care of your and your family’s needs. The needs does not change in fact they increase but the money stops after one retires and that is why we need to take care of the money aspect of a person after retirement. There are certain financial schemes that have been made to take care of the financial needs of an individual once he retires from work. Reverse mortgage is such a financial transaction that can actually help out a senior citizen take care of all his financial needs even after retirement without too much of a hassle.
In reverse mortgage, a person can get the required amount of money in lieu of the house that they own. The only criterion for getting a reverse mortgage loan is that the person must be above 62 years of age and must own a property in their name. The concept of reverse mortgage is pretty old, but at one point of time it did not use to be a popular choice with the retired. However, of late things have changed and today you can find a large number of people are opting to take reverse mortgage loan to take care of their finances after retirement. One has to be very careful while searching for a reverse mortgage lender; you have to make sure that you are working with an honest dealer so that you do not face any problem while taking a reverse mortgage loan.
There have been instances where fraud reverse mortgage dealers have caused lots of harm to people who are looking out for reverse mortgage loan. So what you will have to do is make sure that you are dealing with an honest lender so that the whole process is smooth sailing for you. Do not make the mistake of dealing with the first reverse mortgage dealer you come across, do a little background research before you select a dealer. If the lender has a good reputation, you can go ahead and take the loan without worrying about anything. However if you are still worried about the whole thing, you can talk with a legal representative to have a clear picture and knowledge about the whole thing.
The reverse mortgage lender will help you in getting the exact amount of money that you require to take care of your loan. The amount of money will depend on the value of the house that you own and till the time you stay in the house you will not have to repay the loan amount. If you work with the best reverse mortgage lender, you are sure to get the best deal for your house.
In reverse mortgage, a person can get the required amount of money in lieu of the house that they own. The only criterion for getting a reverse mortgage loan is that the person must be above 62 years of age and must own a property in their name. The concept of reverse mortgage is pretty old, but at one point of time it did not use to be a popular choice with the retired. However, of late things have changed and today you can find a large number of people are opting to take reverse mortgage loan to take care of their finances after retirement. One has to be very careful while searching for a reverse mortgage lender; you have to make sure that you are working with an honest dealer so that you do not face any problem while taking a reverse mortgage loan.
There have been instances where fraud reverse mortgage dealers have caused lots of harm to people who are looking out for reverse mortgage loan. So what you will have to do is make sure that you are dealing with an honest lender so that the whole process is smooth sailing for you. Do not make the mistake of dealing with the first reverse mortgage dealer you come across, do a little background research before you select a dealer. If the lender has a good reputation, you can go ahead and take the loan without worrying about anything. However if you are still worried about the whole thing, you can talk with a legal representative to have a clear picture and knowledge about the whole thing.
The reverse mortgage lender will help you in getting the exact amount of money that you require to take care of your loan. The amount of money will depend on the value of the house that you own and till the time you stay in the house you will not have to repay the loan amount. If you work with the best reverse mortgage lender, you are sure to get the best deal for your house.
Are you Overpaying your Mortgage?
Nearly one in five (19 per cent) of homeowners in the UK are over-paying their mortgage by staying on their lender’s Standard Variable Rate (SVR).
A recent report has revealed that the most popular mortgage in the UK is a two-to-five year fixed rate, with just over a quarter (27 per cent) of homeowners taking this option to hedge against future base rate rises.
Homeowners in North Scotland are the worst offenders with an alarming 35 per cent of homeowners still on their lenders’ SVR. Lancashire also presents some disappointing results when it comes to sticking with the lender’s uncompetitive offering.
This is likely to be at least two per cent above the leading rates available and the lack of action to review their mortgages and consider a remortgage could be costing borrowers dearly and having a negative impact on their future prosperity.
This study represents a snapshot of the whole of the borrowing population and adds value to the statistics based purely on new lending. Regional variations could point to a need for lenders to review their marketing approach or to deliver different product solutions to meet the differing needs in each area.
While an offset mortgage is one of the best ways to help ease rate rises, awareness is so low that just 4 per cent of borrowers have chosen this deal.
The initial survey has thrown up some interesting findings from a UK-wide and regional perspective such as, most people are not making their money work hardest for them.
Nationally, more than half of those surveyed show that they prefer the stability offered by a fixed rate product. However, two-to-five years is significantly the most popular term overall with just over a quarter of Brits taking up this type of mortgage.
The largest percentage of borrowers opting for five-to-10 year fixed rate mortgages are from the South West where the housing market is at its most expensive (most homes average at £200,000).
There is such a regional variation when it comes to five-to-10 year fixed mortgages, which is due to regional house prices.
The increasing age of the population is also a contributing factor, with a growing proportion of mature borrowers preferring the longer term fixed rate products as their incomes tend to be lower.
It is yet to be seen whether or not an increase in the take up of longer term fixed mortgages is likely as people try to negotiate future base rate rises.
As more High Street lenders break into the housing market, there are more long term deals available than ever before and there will definitely be more choice available in the market within the near future. This is good news for those looking to remortgage.
There is also evidence that there is no great appetite for ‘lifetime mortgage products’ such as equity release. The retired generation for whom these mortgages are designed still aspires to become mortgage-free and the growth of this sector has been slower than initially predicted by new entrants to the market.
Also, the fact that 6 per cent of borrowers do not know the rate they are paying underlines that as yet, there is no universal awareness of the value of reviewing all financial products regularly.
A recent report has revealed that the most popular mortgage in the UK is a two-to-five year fixed rate, with just over a quarter (27 per cent) of homeowners taking this option to hedge against future base rate rises.
Homeowners in North Scotland are the worst offenders with an alarming 35 per cent of homeowners still on their lenders’ SVR. Lancashire also presents some disappointing results when it comes to sticking with the lender’s uncompetitive offering.
This is likely to be at least two per cent above the leading rates available and the lack of action to review their mortgages and consider a remortgage could be costing borrowers dearly and having a negative impact on their future prosperity.
This study represents a snapshot of the whole of the borrowing population and adds value to the statistics based purely on new lending. Regional variations could point to a need for lenders to review their marketing approach or to deliver different product solutions to meet the differing needs in each area.
While an offset mortgage is one of the best ways to help ease rate rises, awareness is so low that just 4 per cent of borrowers have chosen this deal.
The initial survey has thrown up some interesting findings from a UK-wide and regional perspective such as, most people are not making their money work hardest for them.
Nationally, more than half of those surveyed show that they prefer the stability offered by a fixed rate product. However, two-to-five years is significantly the most popular term overall with just over a quarter of Brits taking up this type of mortgage.
The largest percentage of borrowers opting for five-to-10 year fixed rate mortgages are from the South West where the housing market is at its most expensive (most homes average at £200,000).
There is such a regional variation when it comes to five-to-10 year fixed mortgages, which is due to regional house prices.
The increasing age of the population is also a contributing factor, with a growing proportion of mature borrowers preferring the longer term fixed rate products as their incomes tend to be lower.
It is yet to be seen whether or not an increase in the take up of longer term fixed mortgages is likely as people try to negotiate future base rate rises.
As more High Street lenders break into the housing market, there are more long term deals available than ever before and there will definitely be more choice available in the market within the near future. This is good news for those looking to remortgage.
There is also evidence that there is no great appetite for ‘lifetime mortgage products’ such as equity release. The retired generation for whom these mortgages are designed still aspires to become mortgage-free and the growth of this sector has been slower than initially predicted by new entrants to the market.
Also, the fact that 6 per cent of borrowers do not know the rate they are paying underlines that as yet, there is no universal awareness of the value of reviewing all financial products regularly.
The Right Way To Maintain Marble Tile Flooring
marble tiles are believed by many to be one of the best flooring materials to use in constructing your home, or any structure for that matter, especially due to its certain unique and distinct characteristics.
his type of tiles not only offers durability and functionality as a flooring tile, but it also helps in improving the aesthetic value of the room, making it an ideal flooring material for any home. marble tiles can be quite expensive, but the amount is reasonable considering all the perks and advantages that you are getting when you use it as your flooring tile.
marble is a natural stone that is considered to be very durable, giving it the characteristic of being able to withstand a certain amount of damage done to it. And with its hypoallergenic attributes, it also helps eliminate the chances of germs and bacteria from surviving on its surface. However, no matter how durable and hypoallergenic marble tiles are, they still have a tendency of getting stained and damaged, especially if they are not maintained properly. If you want your marble tile to keep its shine and beauty, and make it last for a very long time, then you need to make sure that you take care of them properly through constant maintenance using the appropriate cleaning process and materials.
marble tile Maintenance
If you want your marble tile to remain shiny and clean, then it would require your constant attention and care. You need to first know what things you need to avoid in order to keep your marble tile flooring looking as exquisite as possible. The best thing that you can do is to avoid using marble tile flooring on high-traffic areas of the house, especially in areas that can cause the most damage to your marble tile flooring through constant contact, such as the driveway, kitchen, and other similar areas of the house. Unfortunately, this is sometimes difficult to avoid, which is why properly maintaining and cleaning your marble tile flooring is crucial in making it last for a long time.
One thing that you can avoid when cleaning your marble tile are acidic substances, such as vinegar, orange juice, tomato juice, and other similar liquids and substances, since marble tiles are highly porous, making it easier for these types of materials to stain the surface of the marble tile. This is why you should only use a neutral pH cleaning solution when cleaning the floor with marble tiles. If you want to avoid staining your marble tile flooring, you can use mild soap and water when washing and cleaning your floor. If acidic substances spill on your marble tiles, you should immediately clean them up in order to avoid the stains on the surface.
marble tiles are also prone to water spots, so wiping off any type of spill on your marble tiles using a dry towel can help reduce water spots and stains on its surface. However, glazed marble tiles require a whole lot less attention and maintenance since it is able to withstand more damage and staining. Nonetheless, it still requires the basic sweeping, vacuuming and mopping in order to keep its shine and cleanliness. By not allowing dirt and dust to set in on the tiles, you can help maintain the visual impact of the marble tile flooring by keeping it looking great.
Marble Tile Floors: How Expensive Can They Get?
marble tiles are some of the best materials to use when it comes to flooring tiles, mainly due to their distinct characteristics that help make them one of the more sought after construction materials for any household to use.
This type of flooring tile is considered to be very durable, most especially if it is properly maintained, making it last for much longer. marble tiles are able to resist some of the damage that other ordinary flooring tiles will sustain from everyday wear-and-tear, especially in those higher-traffic areas of the house where events such as these have more chances of occurring, making it an ideal flooring material. All it needs in order to be able to maintain its durability is the proper maintenance and installation to help reduce the chances of damages, stains and scratches.
marble tiles also possess the characteristic of being hypoallergenic, making it difficult for bacteria and germs to survive on its surface, giving you a durable and clean floor. Aside from being functional, marble tiles also offer a great aesthetic boost to the room, or area of the house that you may wish to put it in, giving you not only a useful flooring tile, but an exquisite one at that. marble tiles have the ability to add elegance and beauty to the place where it may be placed, increasing that part of the home's aesthetic value through its improved visual impact.
Aside from these, marble tiles are also considered to be extremely popular as flooring tiles since they provide you with a great alternative to your flooring needs, especially with its wide range of choices, giving you exactly what you are looking for in a flooring tile. Unfortunately, most, if not all, of the types of marble tile flooring are quite expensive, making it difficult for you to find the type of marble flooring tile that you need at an attractive price, but there are some which are priced reasonably, all depending on a number of factors, such as the customization, edges of the tile, and the actual amount of work in its installation.
Cost Of marble tiles
Generally, the basic cost of marble tiles can start at around $5 to $12 and above, depending on the type of marble used. Some of the cost of marbles can actually increase if you purchase some additions to the basic marble tile, such as engravings, hand-painted designs and fancy finishes. Also, since marble tile installers charge their customers per project, then the more custom work that is needed in the actual installation of the marble tiles, such as the edges and corners, and installing those more artistic, mosaic-type creations, then the more expensive the overall cost would be. It is important to note that most of the things that boosts the price range for most of these marble floor tiles can help improve the marble tile's longevity, durability, and aesthetic value.
Although some of the other types of marble are more reasonable in its price range, such as the Crema marble tiles, which is priced at around $3.59, Cloud Grey marble tiles, which is priced at $2, as well as many others, there are some which are quite expensive, such as the Rosa Aurora Classic marble tile, which is priced starting at 45 euros.
Vanessa Arellano Doctor
Friday, November 9, 2007
Mortgage Calculator vs Mortgage Audit Software
If you have a mortgage, or are about to sign up for one, then it is time to switch from a mortgage calculator to mortgage audit software (also known as a mortgage error calculator). Mortgage audit software helps you check your statements for errors and allows you to manage your mortgage over the life of the loan. You simply type in (or import) your mortgage loan information, statements, transactions and interest rate changes, and the software does the rest.
Mortgage audit software is designed to help you:
In summary, mortgage audit software can help you avoid expensive mistakes. An undetected error will compound over the life of your mortgage and could end up costing you thousands.
Mortgage audit software is designed to help you:
- Track your mortgage repayments over the life of your loan.
- Check your mortgage statements for bank errors and lender mistakes.
- Calculate your expected refunds from any bank errors.
- Check you are receiving the full benefit from your offset account.
- Calculate how much your mortgage is costing you each year, broken down by interest payments, fees, deposits and withdrawals.
- Compare mortgage costs from year to year and statement to statement.
- Gain insight into your bank's calculations, by providing you with the daily breakdown of your mortgage interest charges and calculations.
- Calculate and plan for changes to your repayment amounts due to interest rate rises.
- Repay your mortgage earlier by providing you with up to date estimates of the amount to increase your repayments by, to meet you early repayment goals.
- Guard against bank errors and protect the thousands you pay in interest over the life of your loan.
In summary, mortgage audit software can help you avoid expensive mistakes. An undetected error will compound over the life of your mortgage and could end up costing you thousands.
Mortgage Calculator, online or Software Download
There are two main types of mortgage calculators, the ones that you use online over the Internet, and those you download and run on your own computer.
Most banks and mortgage lender websites provide some sort of free mortgage calculator to help you calculate how much you can borrow. Some provide additional calculators that produce amortization schedules, monthly and bi-weekly repayments schedules, prepayment calculators and more.
A word of caution with online mortgage calculators. The information you are providing may be recorded and used for marketing purposes, so be careful how much personal information you enter. If you have to type in an email address, phone number or street address just to use the calculator, then you may find yourself on the receiving end of a sales pitch. Try to find a mortgage calculator that allows you to enter financial details (eg how much you want to borrow, interest rates, etc) without having to enter any personal details (eg name, address, email, phone numbers, etc).
The other limitation of online mortgage calculators is that they don't let you save your calculations. Therefore, if you are trying to compare multiple mortgage loans over a period of time, it can become a little cumbersome having to re-enter the same information over and over.
With downloadable mortgage calculators, the main concern is the risk of being infected with a virus or spyware. As with any download, it is best to source it from a reliable web site and to virus check it before using it.
Apart from the above warnings, the choice of using an online mortgage calculator and/or downloadable mortgage calculator is a personal one. You can get started with online calculators straight away, whilst downloadable calculators take a little more effort to set up. However, if you can see yourself using one often over the coming weeks, then the additional set up effort will pay-off.
Most banks and mortgage lender websites provide some sort of free mortgage calculator to help you calculate how much you can borrow. Some provide additional calculators that produce amortization schedules, monthly and bi-weekly repayments schedules, prepayment calculators and more.
A word of caution with online mortgage calculators. The information you are providing may be recorded and used for marketing purposes, so be careful how much personal information you enter. If you have to type in an email address, phone number or street address just to use the calculator, then you may find yourself on the receiving end of a sales pitch. Try to find a mortgage calculator that allows you to enter financial details (eg how much you want to borrow, interest rates, etc) without having to enter any personal details (eg name, address, email, phone numbers, etc).
The other limitation of online mortgage calculators is that they don't let you save your calculations. Therefore, if you are trying to compare multiple mortgage loans over a period of time, it can become a little cumbersome having to re-enter the same information over and over.
With downloadable mortgage calculators, the main concern is the risk of being infected with a virus or spyware. As with any download, it is best to source it from a reliable web site and to virus check it before using it.
Apart from the above warnings, the choice of using an online mortgage calculator and/or downloadable mortgage calculator is a personal one. You can get started with online calculators straight away, whilst downloadable calculators take a little more effort to set up. However, if you can see yourself using one often over the coming weeks, then the additional set up effort will pay-off.
Mortgage Calculator, what Is It and What Can it Calculate?
If you are currently shopping around for a mortgage, you've probably found out by now that they come in all shapes and sizes. Interest rates that can be variable or fixed, loan terms ranging from a few years to 30 years (even 40 years in some cases), options of repaying monthly or bi-weekly and more fees and clauses than you can poke a stick at. To make matters worse, just to calculate the amount you can borrow, your repayment amounts and the total cost of the loan, you need to plug all these numbers into some pretty ugly financial formulas.
A mortgage calculator is designed to do all the complex calculations for you. By entering your income and living expenses, you can calculate the repayment amount you can afford each month, and from this you can calculate the total mortgage loan amount you can afford.
A mortgage calculator is also great for comparing different loans with different fees and interest rates, as it lets you see the true cost of each loan. You enter in all the relevant information and it calculates expected repayment amounts, amortization schedules and the total cost to you.
For example, assume you are looking for a mortgage for 150,000 over 30 years. Bank A is offering you an interest rate or 6.9% with no upfront fees, and bank B is offering you and interest rate of 6.7% with 750 of establishment fees. Which is the cheaper option over the life of the mortgage?
Bank A (at 6.9%) will end up charging you 205,644 in interest payments over the 30 years, and bank B (at 6.7%) will charge you 198,451 in interest payments plus the 750 upfront fee (a total charge of 199,201). Despite bank A being over 6,400 more expensive than bank B (205,644 compared to 199,201), many people still go with bank A to avoid the upfront fees.
It's worth remembering that when dealing with mortgages, the smallest change in interest rates can make a big difference to the total amount you end up paying. A mortgage calculator can help you calculate the true cost of a mortgage before you sign up with a lender.
If you are currently looking for a mortgage, want to know how much you can borrow, and which mortgage is the best deal for you, a mortgage calculator can save you thousands by helping you chose the right mortgage.
A mortgage calculator is designed to do all the complex calculations for you. By entering your income and living expenses, you can calculate the repayment amount you can afford each month, and from this you can calculate the total mortgage loan amount you can afford.
A mortgage calculator is also great for comparing different loans with different fees and interest rates, as it lets you see the true cost of each loan. You enter in all the relevant information and it calculates expected repayment amounts, amortization schedules and the total cost to you.
For example, assume you are looking for a mortgage for 150,000 over 30 years. Bank A is offering you an interest rate or 6.9% with no upfront fees, and bank B is offering you and interest rate of 6.7% with 750 of establishment fees. Which is the cheaper option over the life of the mortgage?
Bank A (at 6.9%) will end up charging you 205,644 in interest payments over the 30 years, and bank B (at 6.7%) will charge you 198,451 in interest payments plus the 750 upfront fee (a total charge of 199,201). Despite bank A being over 6,400 more expensive than bank B (205,644 compared to 199,201), many people still go with bank A to avoid the upfront fees.
It's worth remembering that when dealing with mortgages, the smallest change in interest rates can make a big difference to the total amount you end up paying. A mortgage calculator can help you calculate the true cost of a mortgage before you sign up with a lender.
If you are currently looking for a mortgage, want to know how much you can borrow, and which mortgage is the best deal for you, a mortgage calculator can save you thousands by helping you chose the right mortgage.
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