Saturday, July 22, 2006
repaying a mortgage
If you’re looking for a mortgage, whether it’s a first mortgage, second , or refinance mortgage, there are several ways of repaying it, which is something most people often forget. So you shouldn’t just take the first offer, but look at the different options available:
Interest and Capital is the most common way for repaying your mortgage, because you pay each month on the capital, or principle, of the loan. This can take from 10 to 50 years, depending on who’s the lender and where you’re currently living. The money you give to the mortgage company each month take a percentage and place it towards the interest with the rest going towards the capital of the loan. At the beginning of the loan, most of the payment goes toward the interest and towards the end most of it goes to the capital.
Interest only repayment is used a lot in the United Kingdom, but rarely in the US. In this case, the capital isn't repaid through the term of the loan, instead, you make regular 'payments' to an investment account or to a plan that helps you to build up a large sum that will in turn repay the mortgage completely at the end of the loan. This is called an “investment-backed mortgage”, “Personal Equity Plan Mortgage”, “Individual Savings Account Mortgage”, or “Pension Mortgage”. So now you know what those terms are about. These mortgages have huge tax advantages, so ask about them.
If you’re old, no interest or capital payments might be good for you.
Sometimes you’ll be offered a “reverse mortgage”, “lifetime mortgage” or an “equity release mortgage”, it just depends on where you’re living and where your motrgage company is located. Basically this is compounded each year, with the interest rolled up into the capital. Of course there’s a problem because the debt increases each year of the mortgage being open. These are good for older people because the mortgage is not paid until they’ve passed away.
Of course there are also other, less common ways of repayment that might be good for you, so don’t focus too much on these options.
Interest and Capital is the most common way for repaying your mortgage, because you pay each month on the capital, or principle, of the loan. This can take from 10 to 50 years, depending on who’s the lender and where you’re currently living. The money you give to the mortgage company each month take a percentage and place it towards the interest with the rest going towards the capital of the loan. At the beginning of the loan, most of the payment goes toward the interest and towards the end most of it goes to the capital.
Interest only repayment is used a lot in the United Kingdom, but rarely in the US. In this case, the capital isn't repaid through the term of the loan, instead, you make regular 'payments' to an investment account or to a plan that helps you to build up a large sum that will in turn repay the mortgage completely at the end of the loan. This is called an “investment-backed mortgage”, “Personal Equity Plan Mortgage”, “Individual Savings Account Mortgage”, or “Pension Mortgage”. So now you know what those terms are about. These mortgages have huge tax advantages, so ask about them.
If you’re old, no interest or capital payments might be good for you.
Sometimes you’ll be offered a “reverse mortgage”, “lifetime mortgage” or an “equity release mortgage”, it just depends on where you’re living and where your motrgage company is located. Basically this is compounded each year, with the interest rolled up into the capital. Of course there’s a problem because the debt increases each year of the mortgage being open. These are good for older people because the mortgage is not paid until they’ve passed away.
Of course there are also other, less common ways of repayment that might be good for you, so don’t focus too much on these options.
Friday, July 21, 2006
motrgage calculator
Found a useful tool that can calculate your mortgage so you know how much you'll be spending.
How to save a lot of money on your mortgages
Most, if not all of us, dream of having a large, comfortable house that we can live in and in which
we can retire.
Now if you don't belong to the upper-class you may have a problem coming
up with the money and that's when a motrgage comes in handy. Now you may possible have to pay for them for many years to come. But there is a way to pay off your mortgages quicker and thus save time and money and yourself a lot of stress: the "Accelerated Payment Clause". Almost all mortgages have this built in. It helps, since it allows you to pay more than the minimum amount of your monthly mortgage payment. If you pay more than the minimum, you will save a lot of money on interest charges. If you save up some of the earnings from your job and use them to pay off the mortgage, you'll be able to retire the mortgage a lot earlier, thus saving yourself a lot of money!This works best by being consistent with the amount of money that you pay on your monthly mortgage Changing the amount of monthly repayment of the mortgage will also have an effect on the amount that you will actually save.
we can retire.
Now if you don't belong to the upper-class you may have a problem coming
up with the money and that's when a motrgage comes in handy. Now you may possible have to pay for them for many years to come. But there is a way to pay off your mortgages quicker and thus save time and money and yourself a lot of stress: the "Accelerated Payment Clause". Almost all mortgages have this built in. It helps, since it allows you to pay more than the minimum amount of your monthly mortgage payment. If you pay more than the minimum, you will save a lot of money on interest charges. If you save up some of the earnings from your job and use them to pay off the mortgage, you'll be able to retire the mortgage a lot earlier, thus saving yourself a lot of money!This works best by being consistent with the amount of money that you pay on your monthly mortgage Changing the amount of monthly repayment of the mortgage will also have an effect on the amount that you will actually save.
This is a Mortgage blog
Hey. This blog is all about motrgages. Here I will be posting information on the topic of mortgages and how you should act if you consider a motrgage.
