Mortgage | Refinancing


Posts Tagged ‘Mortgage’

Home loan advices

April 22nd, 2009

Here are my home loan advices to you:

Home loan advice no 1.
Buy a home only if on the long run it’s value will increase. If it’s old, in bad shape, you have bad neighbors, try to not take the loan

Home loan advice no 2
Be very carefull of the banks conditions. If the bank asks you for several commisions, if the bank has hidden conditions, if you want to repay in advance the credit and they charge you more for this, etc.

Home loan advice no 3
Beware of your further ability to make money. If you will not make a lot of money in the future, getting a huge loan now it will not be a sound decision

Home loan advice no 4
Always negociate. Even banks have some fixed products, there is room for negociations. After all, they are humans. And humans are changeble. Anyway, you want loose anything.

Home loan advice no 5
Don’t trust very much loan brokers. Because they are interested in selling you the best product for them, not for you. Do you really think that they will present you the product that will bring them the lowest commision? :) Common. Especially for mortgages, where the values are very high.

I hope that these home loans advices will help you. Especially save money. If you are interested in other home loan advices, here is a nice site you can look upon.


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Mortgage protection insurance

April 17th, 2009

Living in UK? Then you are lucky.

Total Finance Centre offers the most competitive mortgage protection insurance policies by scanning through over 300 providers.

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Save money with a refinance mortgage loan

April 17th, 2009

Save Money With a Refinance Mortgage Loan – If you took out a fixed-rate mortgage several years ago and interest rates have since dropped, refinancing may lower your payments considerably. A $150,000 mortgage with a 30-year term and a rate of 8 percent, for example, carries a monthly payment of $1,100. The same mortgage at 6 percent will have a payment of less than $900 a month. All Credit Welcome!

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March 17th, 2009

This is a cry for reasoning: Refinance a loan, any loan. Here is the reason: BECAUSE YOU CAN.

Refinancing means renegociation. And today, in our shaky macroeconomic environment, you need any help you can get.

I saw Oprah is telling everybody to close down the light when you are not using it, to use coupons at the grocery shop and so one. All these advices will help you save peanuts comparing to the savings from a loan refinancing.

Yes, I strongly suggest to refinance a loan. Because, in the negociation process, you will definetly cannot loose. Either a smaller rate, either in worst case scenarion, your request to refinance a loan is rejected. So, like I said, you cannot loose.

Go now to ALL your suppliers of loan refinancing and ask them to give you a quotation. Or you can ask a quotation in the right column, on our site.

To refinance a loan means a huge relief on your monthly cashflow. GO for it now. And make the comparisons. Good luck :)

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Mortgage Problems Explained

March 11th, 2009

Cool explanation on the crisis and mortgage problems :) Is better to listen, then to watch.

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Mortgage – to be or not to be

March 10th, 2009

I just read an interesting post on Get rich slowly.

There is a guy that makes a point that keeping a mortgage just for the tax reductions is not worthing. The comments are even more interesting that the post itself :)

You always need to make some calculations, when you’re talking about your money. You should consider if your ability of multiplying your money exceeds the cost to the bank. Also, take into considerations the price increase (or decrease :) ) of your property.

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Housing starts down 12 per cent in February: CMHC

March 9th, 2009

The Canadian Press –
OTTAWA – Canada Mortgage and Housing Corp. says housing starts fell to a seasonally adjusted annual rate of 134,600 units in February, down 12 per cent from 153,500 units in January.

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Moishe Alexander Funds Commercial Loan in Guelph, Ontario

March 9th, 2009

Moishe Alexander and the Canadian Funding Corporation fund an ultra-high LTV (loan to value) commercial loan in Guelph, Ontario. The loan comprised a third mortgage to fund the purchase of a variety s…

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How long should financial records be kept

March 9th, 2009

Dear Liz: Since tax filing season is upon us, it’s a good time to get rid of statements and records we don’t need. How long should we keep such things as tax records, credit card statements, mortgage …

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5 Ways to Reduce the Cost Of Borrowing

March 9th, 2009

For consumers who wish to borrow money the single most important piece of information is the cost of borrowing, or the rate interest the consumer must pay. How much interest is payable or the actual cost of borrowing depends on a few different parameters:

1. The amount borrowed
2. The fees charged by the lender
3. The duration of the loan (for how long the borrower is taking a loan for)
4. The frequency of repayments
5. The credit history of the borrower (and perceived reliability of the borrower)

How these parameters affect the cost of borrowing is quite obvious. The larger the amount borrowed, the greater the rate of interest rate. Clearly the higher the fees charged then the greater the cost of borrowing. Contrastingly by making more frequent payments to service the debt, or reducing the period or term of the loan, results in a lower cost of borrowing.

By understanding how time and credit are related, consumers can devise many ways to reduce the cost of servicing the money they borrow from such retail products as mortgages, personal loans, credit cards and overdrafts. Here are five ideas to reduce the cost of borrowing.

1. Borrow less

Banks often coerce consumers into borrowing more than they actually need. A lot of advertising is targeted at consumers sending messages imploring them to borrow more than they require as a means of treating themselves. Obviously the more they lend, the greater the interest banks charge and the higher their profits. Therefore it makes sense to only borrow what is needed, and consumers should not make the mistake of rounding their loans upwards.

2. Reduce the interest rate

Consumers should pay cute attention to their Annual Percentage Rates (APR’s) the rough annual interest rate on their loans. Obviously the lower the interest rate, the lower the cost of borrowing. Headline APR’s however can be misleading and consumers should make the effort to check the fine print before borrowing money. If they are not sure, then they should check with the salesperson or a manager and have them explain what the true cost of debt is and how much one will actually end up paying on any amount borrowed.

3. Transfer your debt

Another way to reduce the amount of interest being paid is to transfer the debt to another lender who is prepared to offer the amount borrowed or still outstanding at a lower interest rate. One way to do this is by transferring credit card balances to a 0% balance transfer card. Doing so means that interest bills can be frozen for a year or longer. Some credit cards charge no interest for up to sixteen months provided the borrower pays a fee to transfer the debt.

Another technique that can be used it to consolidate various debts into a single loan, usually in the form of an unsecured personal loan. Before doing so consumers should be careful to check whether the consolidated loan results in a lower payment, then having many smaller loans outstanding with different lenders. In a lot of cases the larger the loan the higher the interest rate, and therefore the greater the cost of servicing the debt through a single lender. However there are many debt consolidation products out there where borrowers can sit down with advisers and try and work out whether it makes sense to consolidate. The other caveat is if a borrower chooses to go down the secured loan route, then if they fail for any reason to make payment, their properties could be threatened.

4. Make more frequent repayments

By making payments more frequently, the debt gets paid off at a faster rate, therefore bringing down the total cost of borrowing. For example, millions of American home owners prefer to pay their mortgage fortnightly, instead of monthly. By making 26 payments of half the usual monthly mortgage repayment, they make thirteen monthly repayments per year, instead of twelve.

Before changing the frequency of mortgage repayments, consumers should check with their lenders first. If they try and change the frequency of their mortgage repayments unilaterally, they may be in breach of their mortgage agreements.

5. Repay over a shorter period

Reducing a term of a loan is the easiest way to cut the cost of borrowing. If consumers can afford to pay a loan off in four years rather than five, then they should not take out a personal loan over five years simply because the option is available. That is a sure fire way to end up with a higher cost of borrowing than is required.

Credit and the cost of borrowing is a function of time, and the shorter the time period the lower the interest rate, therefore consumers should be aiming for the shortest lifespan of a loan whilst trying to balance that with an affordable repayment.

Consumers should always check their TAR (Total Amount Repayable). This metric shows the overall cost of the loan including the interest and principal plus any fees payable.

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