If you are looking for a mortgage for your home you may find that there are dozens of mortgage lenders to choose from. The days of being forced to apply for a mortgage from one of only a small selection of high-street banks has been firmly relegated to the history books.
Whether you are looking to purchase or remortgage a property you should find that there are many different mortgage lenders willing to do business with you no matter what your employment status or credit history.
These days, mortgage lenders range from high-street banks to smaller mortgage lenders and packagers that specialise in specific areas of lending such as buy-to-let mortgages and adverse credit mortgages.
Specialist mortgage lenders have cropped up in many different niche markets over the past few years in order to satisfy the various needs of borrowers in today’s society. In modern times, there is a vast array of borrowers who require non-conforming mortgage products due to adverse credit histories and irregular working patterns.
Furthermore, specialist buy-to-let mortgage lenders have emerged that concentrate solely on the needs of property investors. Investing in property has become a popular business venture for individuals to become involved in so the need for expert buy-to-let mortgage lenders is apparent.
If you are looking to buy a property or remortgage your existing home, or buy-to-let property portfolio, it may be wise to speak to an independent mortgage broker to help sort through the thousands of mortgage products available from the dozens of mortgage lenders on the market today.
Independent mortgage brokers have specialist software that can scan the entire mortgage market and help you choose the right mortgage lenders for your individual circumstances.
The right mortgage advice can help you save money over the term of the mortgage, whether it is for a buy-to-let property or your own home. Choosing the right mortgage products and mortgage lenders is vital to ensure you don’t pay more interest or fees than necessary.
If the sheer size and scope of the mortgage market is too much for you to bear, contact an independent mortgage adviser for expert and impartial advice on which mortgage lenders are right for you.
UKMortgageSource provides up-to-date information on Mortgage Lenders
http://ezinearticles.com/?Plenty-Of-Mortgage-Lenders-To-Choose-From&id=648744
Friday, July 20, 2007
Points or No Points? A Good Mortgage Calculator Can Help
In order to get a lower monthly payment lenders will give the borrower the opportunity to pay an up front fee which lowers the interest rate thus, paying less on their month to month housing note.
A good online mortgage calculator will do all the computation and analysis for you but we’ll explain it for you below….
Here’s how it works:
The up front fee is called “points”. You typically pay 1% of the amount borrowed for each point:
Let’s illustrate:
If the amount borrowed was $100,000 then 1 point would cost you $1000 ( $100,000 x 1%) This in turn will lower, or "buy down" your interest rate by .25%. For example, if you only qualify for a 6.75% mortgage rate on a $100,000 loan, paying your broker $1000.00 up front can reduce the rate to 6.5%.
Determining if this is a wise move finacially for your family depends on a few factors, mainly the length of time you are planning on staying in the home. Again, a good online mortgage calculator will compare the loan with and with out points. (The online mortgage calculator will ask you for principal, interest rate and number of points)
In another example borrowing $100,000 for 30 years at 6.75% with no points would result in a payment of $648 monthly ( Principal and interest only… no tax or insurance in this example)
The same loan but charging the borrower 2 points :
- drops the interest rate to 6.25%
- lowers the monthly payment to $615.00 monthly
- save $11,880 in total interest repayment
The above scenario makes sense if you plan on stayng in the home for at least 5 years ( break even point).
Again a good online mortgage calculator will clearly let you compare a loan with points and without points so you can determine:
- total interest saved
- How many years break even
Break Even Point …Huh?
The break even point is the number of years it takes to re-coup the expense of paying for the points upfront. To get a financial benefit from buying down your interest rate by purchasing points you need to stay in your house until after the total of the monthly savings realized is greater than the total amount of cash dished out on points.
To Illustrate...
The cost for 2 points above was $2000. Each month you save 33 bucks because you lowered your interest rate. So… $2000/$33 = 125 ( payments or months) which is about 5 years
After about 5 years you’ve paid back all the cost of the points which now gives you the opportunity to avoid $11,880 in interest had you not purchased points.
So, points are not always bad if you want to lower your interest rate, It really depends on how long you plan on staying in your home and how much cash you have at the time of closing.
For 15 years Leslie Collins has been helping all types of borrowers get the loan information they need to make the best home buying decision . Please visit the easy to use mortgage calculator before you talk to banks or loan officers. Also see our easy online mortgage application safe, secure and takes about 2 minutes!
http://ezinearticles.com/?Points-or-No-Points?-A-Good-Mortgage-Calculator-Can-Help&id=646366
A good online mortgage calculator will do all the computation and analysis for you but we’ll explain it for you below….
Here’s how it works:
The up front fee is called “points”. You typically pay 1% of the amount borrowed for each point:
Let’s illustrate:
If the amount borrowed was $100,000 then 1 point would cost you $1000 ( $100,000 x 1%) This in turn will lower, or "buy down" your interest rate by .25%. For example, if you only qualify for a 6.75% mortgage rate on a $100,000 loan, paying your broker $1000.00 up front can reduce the rate to 6.5%.
Determining if this is a wise move finacially for your family depends on a few factors, mainly the length of time you are planning on staying in the home. Again, a good online mortgage calculator will compare the loan with and with out points. (The online mortgage calculator will ask you for principal, interest rate and number of points)
In another example borrowing $100,000 for 30 years at 6.75% with no points would result in a payment of $648 monthly ( Principal and interest only… no tax or insurance in this example)
The same loan but charging the borrower 2 points :
- drops the interest rate to 6.25%
- lowers the monthly payment to $615.00 monthly
- save $11,880 in total interest repayment
The above scenario makes sense if you plan on stayng in the home for at least 5 years ( break even point).
Again a good online mortgage calculator will clearly let you compare a loan with points and without points so you can determine:
- total interest saved
- How many years break even
Break Even Point …Huh?
The break even point is the number of years it takes to re-coup the expense of paying for the points upfront. To get a financial benefit from buying down your interest rate by purchasing points you need to stay in your house until after the total of the monthly savings realized is greater than the total amount of cash dished out on points.
To Illustrate...
The cost for 2 points above was $2000. Each month you save 33 bucks because you lowered your interest rate. So… $2000/$33 = 125 ( payments or months) which is about 5 years
After about 5 years you’ve paid back all the cost of the points which now gives you the opportunity to avoid $11,880 in interest had you not purchased points.
So, points are not always bad if you want to lower your interest rate, It really depends on how long you plan on staying in your home and how much cash you have at the time of closing.
For 15 years Leslie Collins has been helping all types of borrowers get the loan information they need to make the best home buying decision . Please visit the easy to use mortgage calculator before you talk to banks or loan officers. Also see our easy online mortgage application safe, secure and takes about 2 minutes!
http://ezinearticles.com/?Points-or-No-Points?-A-Good-Mortgage-Calculator-Can-Help&id=646366
Home Mortgage Loan - Finding A Good One
Finding the home mortgage loan that is right for you may be just a few mouse clicks away for you. Yes, the internet has berthed a large selection of competitive mortgage loan companies like E-Loan and others. You can do a quick search on one of the popular search engines to find these companies offing very competitive rates.
The best thing about a home mortgage loan today is that the market is so competitive that you can find a great rate with low fees relatively easy. The only question left is how to pay off the mortgage in a timely manner.
The best strategy to take once you have secured the home mortgage loan that suits you best is to pay a little extra each month. It is important to make sure that there are no extra hidden fees before you take out your home mortgage loan. You want to be able to add extra to the payment each month and pay down on your principle.
The main reason that people fail to stick with a solid plan of paying lump sums or extra money each and every month is that it takes some time to start seeing the results take effect. Once you get into your plan about five years you will start making some ground up. At ten years you can really start eating up chunks of your principle and pay off your home mortgage loan.
Before you decide on which home mortgage loan to get you should talk to a few different companies to make sure that the customer service is what you would expect it to be. Remember, you will have this home mortgage loan for a few years so make sure that it is with a company that you want to deal with for awhile.
For more Home Mortgage information try visiting http://home-mortgage-view.com a website that specializes in providing helpful home mortgage tips, advice and resources to include Home Mortgage Loan and more.
http://ezinearticles.com/?Home-Mortgage-Loan---Finding-A-Good-One&id=645892
The best thing about a home mortgage loan today is that the market is so competitive that you can find a great rate with low fees relatively easy. The only question left is how to pay off the mortgage in a timely manner.
The best strategy to take once you have secured the home mortgage loan that suits you best is to pay a little extra each month. It is important to make sure that there are no extra hidden fees before you take out your home mortgage loan. You want to be able to add extra to the payment each month and pay down on your principle.
The main reason that people fail to stick with a solid plan of paying lump sums or extra money each and every month is that it takes some time to start seeing the results take effect. Once you get into your plan about five years you will start making some ground up. At ten years you can really start eating up chunks of your principle and pay off your home mortgage loan.
Before you decide on which home mortgage loan to get you should talk to a few different companies to make sure that the customer service is what you would expect it to be. Remember, you will have this home mortgage loan for a few years so make sure that it is with a company that you want to deal with for awhile.
For more Home Mortgage information try visiting http://home-mortgage-view.com a website that specializes in providing helpful home mortgage tips, advice and resources to include Home Mortgage Loan and more.
http://ezinearticles.com/?Home-Mortgage-Loan---Finding-A-Good-One&id=645892
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