12 Quick Tips For Getting A Mortgage
by: T. O' Donnell
1. Watch out for the 'Deal Of A Lifetime', the deal that seems too good to be true. The company may be saving money by cutting back on their level of service.
2. When getting a fixed rate: get a written statement which details the interest rate, how long the rate is fixed for, and the conditions attached.
3. When interest rates fall: try and leave your repayments as they are. You will therefore be paying more than the minimum each month. You'll repay your loan much earlier.
When rates rise again you may not have to change your payment.
4. Consider a fifteen or twenty year term. Try to pay off your mortgage quickly. Use a mortgage calculator with an amortization function, and see what's possible.
5. Keep your mortgage as small as possible. Aim for *comfortable* affordability.
6. Try not to 'churn' your mortgage. Each time you refinance you'll probably incur completion costs and non-refundable fees.
7. Beware of prepayment penalties. Many 'no fee' credit lines have a pre-payment penalty. This can be very expensive if you are planning to refinance or sell your house in a few years time.
You don't need to sign a mortgage agreement which contains any significant prepayment penalty, if you have good credit. One of the smartest things you can do with a mortgage is to prepay it.
8. Don't look for a home without being pre-approved. You will have much more negotiating power with the vendor, and may be able to save thousands of pounds.
9. Get a full, professional survey. Human beings can be perverse; happy to spend ?150,000 on a house after a half-hour viewing, but be-grudge spending ?500 finding out whether it's worth buying in the first place!
10. Find out the true value of your home-to-be. Get more than one independent appraisal. Compare it with the prices of similar-sized houses for sale in the same area.
11. Start gathering documents. Provide your mortgage company with documents in good time; don't let your rate lock expire!
12. Verbal (oral) agreements are worthless. When buying or selling property, always get it in writing.
A mortgage is the biggest financial committment most of us will ever make; worth spending a little time on, to get it right!
About The Author
T. O' Donnell (www.tigertom.com/mortgages-uk.shtml) offers mortgage quotes, advice, an ebook and a mortgage calculator, in London, UK.
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1st And 2nd Mortgage Refinance Loan
1st And 2nd Mortgage Refinance Loan
by: Carrie Reeder
Refinancing a first and second mortgage requires some extra considerations. Depending on your equity, you may find that combining the two mortgages results in a higher interest rate. You may also find that you have to carry PMI with the refinanced mortgage.
Will Refinancing Benefit You?
Refinancing two mortgages allows you to consolidate your loans into one payment, often lowering your monthly bill. You may also find lower rates under the right circumstances.
Those with a large amount of equity benefit most from consolidating loans since they qualify for the lowest rates. It is important to look at interest savings, not just monthly numbers which can be misleading.
However, if you have less than 25% equity, you may end up qualifying for higher rates. With less than 20% equity, you will also have to pay for private mortgage insurance. Even with these factors, you may still...
1st And 2nd Mortgage Refinance Loan
Refinance > 1st And 2nd Mortgage Refinance Loan
Home Loan Refinancing ? When Do You Have To Close?
Home Loan Refinancing ? When Do You Have To Close?
by: Carrie Reeder
Refinanced mortgages have a couple of different rules when it comes to closing. For one, there is a mandatory rescission clause for primary residence mortgages that allows you annul your loan. You can also choose to close at anytime, which is beneficial if you think rates will drop in the near future.
Rescission Clause
With a rescission clause, you have three days after closing to cancel your loan if the property is your primary residence. Think of it as a ?cooling off? period. If you have second thoughts, you can annul the loan and recoup nearly all the fees.
Most often this clause comes in handy when homeowners are deciding to tap into their home?s equity, but then change their minds. Other times, a change in job situation or home plans makes the refinanced mortgage unnecessary.
Once you have annulled your mortgage, you will only have a short term hit on your...
Home Loan Refinancing ? When Do You Have To Close?
Refinance > Home Loan Refinancing ? When Do You Have To Close?
How Do I Know Whether Or Not I Will End Up Saving Money When Refinancing My Home Loan?
How Do I Know Whether Or Not I Will End Up Saving Money When Refinancing My Home Loan?
by: Derek Gardner
To save money, you must live in your house longer than the "break-even period" ? the period over which the interest savings just cover the refinance expenses. The larger the spread between the new interest rate and the rate on your existing loan, the shorter the break-even period. The more it cost to get the new loan, the longer the break-even period.
But be careful. The break-even period is not the cost of the new loan divided by the decrease in the monthly mortgage expense. This broadly used rule of thumb is a misapplication of the principle that when explaining something to the buyer one should "keep it simple." Simple is fine, except for when it is wrong.
The rule of thumb does not permit for the difference in how rapidly you pay off the new loan as opposed to the old one.
Let us say that in 1996 you took out an 11% 30-year...
Refinance > How Do I Know Whether Or Not I Will End Up Saving Money When Refinancing My Home Loan?
Bad Credit Auto Loan Refinance - Bad Credit Auto Refinance Tips
Bad Credit Auto Loan Refinance - Bad Credit Auto Refinance Tips
by: Carrie Reeder
Most people know that it is possible to refinance their homes but did you know it is also possible to refinance your auto? Indeed for many people who have high interest sub prime car loans, refinancing their auto loans may be a wise decision. How do you know when refinancing your bad credit auto loan might be a good idea? And once you have decided to refinance, how should you go about doing it so that you actually improve your loan situation?
Just as when you refinance your home loan, when you refinance your auto loan the old loan is paid off in full and it is replaced by a new loan. If when you bought your car your credit score was below 620, the interest rate on your auto loan may be significantly above the interest rate you can qualify for today. By refinancing your bad credit auto loan the monthly payment may go down substantially. Also, over the life of the...
Bad Credit Auto Loan Refinance - Bad Credit Auto Refinance Tips
Refinance > Bad Credit Auto Loan Refinance - Bad Credit Auto Refinance Tips
Refinancing With Cash Out
Refinancing With Cash Out
by: Jennifer Hershey
If you have lived in your home for a reasonable amount of time and have acquired equity through appreciation and monthly mortgage payments, you may be considering liquidating some of that equity by refinancing with cash out.
Refinancing with cash out in laymen terms simply means to refinance your existing mortgage and borrow some of the equity in the home to be received in a lump sum at the closing table.
People refinance with cash out all the time and for a variety of reasons. The number one reason being to get a lower rate on their mortgage. The cash out scenario you can use for all sorts of reasons. Such as debt consolidation, buying a new vehicle, home improvement, college tuition, family vacation, etc.
If you are seriously considering refinancing with cash out, you may want to consider shopping around for a mortgage. By shopping around you can compare rates, and fees.
Also,...
Refinancing With Cash Out
Refinance > Refinancing With Cash Out
Baby Gifts ? A Guide for Men
Baby Gifts ? A Guide for Men
by: Robin Darch
Buying gifts for babies can be a difficult chore for men, especially for single men. After all, how can a man who has no children know what the best Baby Gifts are? With this article I hope to help men take some of the mystery out of shopping for Baby Gifts. Baby shower gifts can be simple or elegant, traditional or creative and personal. Select with creativity and care. The possibilities are endless.
Check...
Baby Gifts ? A Guide for Men
Refinance > Baby Gifts ? A Guide for Men
Refinance
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