tag:blogger.com,1999:blog-23620075835564234732024-03-16T11:52:13.345-07:00PANTA FAMILYNirmala k. pantahttp://www.blogger.com/profile/16195953478983508760noreply@blogger.comBlogger249125tag:blogger.com,1999:blog-2362007583556423473.post-80035070229201152142008-11-09T23:58:00.000-08:002008-11-10T00:04:41.522-08:00Best Mortgage Rates: Know Your Mortgage BasicsFor those who are searching for the best mortgage rates, certainly thousands of other home owners in the US and all over the world are doing the same thing. A lot of people are looking for the mortgage that best suits their needs.<br /><br />Mortgage is usually required by many individuals who are yearning to own their dream homes, which are normally difficult to attain because of the high costs of today. Because of this, it is important that people who work on getting their mortgage must be truly aware of the basics of mortgage. Becoming more knowledgeable in mortgage definitely makes it easier for you to find the best mortgage rates.<br /><br />You have to invest time and effort to truly learn much about mortgage loans and rates. Thorough and ample research should also be done in order to maximize your options.<br /><br />First of all, one big factor that can determine the kind of mortgage loan that you will obtain is the mortgage company. Remember that rates do vary from one lender to another. Therefore you have to really discern which one among the list of companies that you researched is the most qualified one to provide you with the best mortgage rates.<br /><br />Likewise you must be reminded that you must obtain as many loan quotes as you can in order to make a really wise decision. Mortgage loans, if you are a first timer, can be obtained from commercial banks, savings institution, insurance groups and other bankers.<br /><br />How do mortgage companies arrive at their rates? Normally they arrive at their mortgage rates on the current economic situation. However, there are many unscrupulous companies that claim that what they offer are the best mortgage rates, when in fact, they are only after profiting from their clients with their substandard mortgage loans. It is imperative therefore to be wary of the lenders especially those whose offer are too good to be true.Nirmala k. pantahttp://www.blogger.com/profile/16195953478983508760noreply@blogger.com194tag:blogger.com,1999:blog-2362007583556423473.post-13473347611017482232008-10-19T00:10:00.000-07:002008-10-19T00:18:29.840-07:00Three Common Misconceptions Of Mortgage BrokersSome first time home buyers opt to obtain a loan directly through their local bank branch rather than employing a mortgage broker. The reason why this may occur is because there a few misconceptions associated with the mortgage broker profession. In reality, mortgage brokers and their respective brokerages have come along way from the days of selling loans simply for profit purposes. Listed below are three opposing thoughts on common mortgage broker misconceptions.<br /><br /><strong>They just want to sell you a loan.</strong><br />Fact is that once a mortgage broker is employed by you, he or she is simultaneously employed by your mortgage lender as well. Ultimately, however, a loan will not go through unless the future mortgagor, you, agree to the terms of the loan that your mortgage broker had set up for you with your new lender. This means that first and foremost you are their customer, not the lender’s. Additionally, mortgage broker fees are extremely competitive and they are aware of that fact. So much so that most brokers are willing to negotiate their fees with you which will, in turn, take your concern that they are just trying to make a buck out of the rest of the loan process equation.<br /><br /><strong>They are old fashioned and only do business one way.</strong><br />Some people picture a mortgage broker as a ‘business only’ profession. Meaning that customer service is not a high priority. On the contrary, mortgage brokers are constantly training on new and improved ways to satisfy their customers needs. Whether it is learning how to initiate a short sale on your behalf or taking seminars on what new programs lenders are able to offer you as a consumer, they are continuously finding new ways to keep their finger on the pulse of what prospective clients want and need.<br /><br /><strong>They will quote you an interest rate just to get their foot in the door.</strong><br />While it is true that the mortgage interest rate amount fluctuates daily it does not mean that the rate they may quote you today will be obsolete by tomorrow. Mortgage brokers are able to negotiate directly with lenders in order to lock your interest rate for a certain period of time in order to get your loan approved and closed in a timely manner. Please note that some lenders will require monies up-front in order to lock in a certain rate, however, the funds put in will be credited back to the customer at the time of closing.<br /><br />Mortgage Brokers work for you and take pride in what they do. They want to know what new programs there are in order to stay up to date with our market needs as well as be able to provide you with superior customer service. Choosing a mortgage broker over a loan officer at your local bank branch has its advantages. When you decide a mortgage broker is right for you, you will get a highly skilled, well trained, and customer service oriented professional.Nirmala k. pantahttp://www.blogger.com/profile/16195953478983508760noreply@blogger.com9tag:blogger.com,1999:blog-2362007583556423473.post-79972668910071161252008-10-15T22:31:00.000-07:002008-10-15T22:41:37.852-07:00Low Mortgage Interest Rates...affordable Homes...economic Incline?The current mortgage interest rates are very low right now and more people that have been renting homes are finding it more affordable to purchase their homes at this time. While home buyers are investing their money, renters are merely throwing their money away. Although very different, buying a home is somewhat comparable to a bank account due to the equity that grows over time.<br /><br />Though the economy is a bit shaky, more people are taking advantage of the current mortgage interest rates to finally own their own homes. Deducting a loan’s interest for the previous year is an advantage that first time buyers have.<br /><br />All buyers get to deduct what the points cost them, that is, if they paint points to get their home. For example, if you paid $10,000 for points, that is how much you can deduct from your taxes.<br /><br />Due to the current mortgage interest rates it is in your favor to itemize all your house expenditures that you are entitled to on your tax forms. You can clearly see why owning your home is much more to your advantage than renting.<br /><br />Everyone that wants to buy a home should take advantage of the current mortgage interest rates. There are many more advantages to buying a home than to renting a home.<br /><br />Another charge you may be able to deduct from your income taxes is the private mortgage insurance (PMI) premiums you have to pay if your down payment is less than 20 percent of total cost of your home.<br /><br />Although buying a home can be frustrating, most of the work can possibly be done for your with the right help. A real estate agent can help you narrow down your choices for your home, and a mortgage broker can help you get the best possible current mortgage interest rates.<br /><br />All interest rates are not the same; however, mortgage brokers have a little more leeway to negotiate the lowest possible rate. Whether you find your home on your own or employ an agent or broker, your objective is to get the best home for the lowest percentage of the current mortgage interest rates.<br /><br />Buying a home is not only an investment; it is an investment that puts money into your pocket in the long run.Nirmala k. pantahttp://www.blogger.com/profile/16195953478983508760noreply@blogger.com7tag:blogger.com,1999:blog-2362007583556423473.post-6011277514029216542008-08-27T01:16:00.000-07:002008-08-27T01:20:17.648-07:00Get The Most Out Of Your Mortgage With These StepsMortgages have become the new "cure all" for one's financial woes. In many cases the borrower isn't even aware of what they are getting into- a dangerous position in which could mar one's credit history for months or years to come. As a result, consumers should be aware of the tools available to them and what can better their situation.<br /><br />Quite a bit of money can be obtained through a mortgage loan- which is why most consumers go to these loans first before other types. Mortgage loans also offer agreeable repayment plans- and some don't even require payment for up to a year or more. But when the prospective borrower considers the average mortgage loan will take at least 15 years to pay off, the matter needs to be reconsidered.<br /><br />The budget one makes to pay their mortgage loan essentially becomes their blueprint for the next few years. Consumers are highly recommended to obtain professional counseling in budget management, or else they could very easily find themselves with a few pennies short and infractions on their credit score. If nothing else, computer budgeting programs can help the matter.<br /><br />Every couple of years, it's important to recheck economic conditions, as well as one's own credit score. Refinancing a loan can shave off many months of debt, depending on market conditions. Refinancing should be done every couple of years, in which time one's credit score has likely gained in rating if their repayment has gone over well.<br /><br />Since the mortgage loan is just like any other type of loan, it may be subject to debt consolidation. Debt consolidation will allow the borrower to help get things back in order if their expenses become too high for their income. This should be a well thought decision, since debt consolidation itself can propel a borrower into many more years of debt.<br /><br />Predatory lending is usually a problem with many kinds of loans, but more so with the mortgage loan. Mortgage loans have so many terms and conditions that apply that it's easy to hide clauses in a contract that can make an "easy way out" for the lender. Because of the serious situation, borrowers are highly recommended to talk to a legal or financial consultant for a second opinion on any mortgage loan they are hoping to obtain.<br /><br /><strong>Closing Comments</strong><br /><br />If everything fails with a mortgage loan, there is always bankruptcy to fall back on. Keep in mind that this is always a last resort, since it will diminish one's credit rating for up to a decade. If you can't seem to beat the financial heat, try talking to a financial consultant or consulting online websites for more information.Nirmala k. pantahttp://www.blogger.com/profile/16195953478983508760noreply@blogger.com40tag:blogger.com,1999:blog-2362007583556423473.post-78538606267942400652008-08-11T21:54:00.000-07:002008-08-11T22:04:02.909-07:00Refinance Loan: A Short Guide For First Timer Home LoanersAre you tired of having high interest rates for your home loans?How can I lower interest rates for my previous home loan?<br /><br />These questions comes into my mind before discovering this fantastic turn around method that was used by millions and millions of people specially those people who have been labeled as poor creditor. This method is what we called refinancing home loan.<br /><br />Most of you might question me back “what is it?”. This question is typical to first timer in home loans. Well based on wiki, refinance or refinancing loan is the term used to the replacement of an existing debt obligation with a new debt obligation bearing different terms. Its main objective of refinancing is to alter monthly payments owed on the loan either by changing its loan interest rate, or altering the term to maturity of the loan. Refinance or refinancing is also use to reduce the risk associated with an existing loan. Interest rates on adjustable-rate loans and mortgages shift up and down based on the movements of the various indices used to calculate them. By using this method, the risk of increasing interest rates drastically has been removed, thus ensuring steady rates over the period of time. This flexibility comes at a price as lenders typically charge a risk premium for fixed rate loans. So this explains some of the basic theories regarding on refinancing. Due to this definition from Wikipedia, I have formulated some advantages in it.<br /><br /><strong>Advantages of Loan Refinancing</strong><br /><br />•#It helps to extend the maturity date of your previous loan. By refinancing your loan, it will extend your previous maturity date and eventually considered extinguished for all of your previous agreement.<br /><br />•#You can find lower interest rate when refinancing your loan. Off course, everyone will be happy with this. This will make things easier for your budget.<br /><br />•#If you have many existing loans, refinancing loans might be the best option for you. Instead of dealing with multiple parties, you can merge it into one loan to pay them off, and you’ll only have the new loan to contend with.<br /><br />After lay down all the best part of refinancing your loans, I also found some flaws with this method.<br /><br /><strong>Disadvantages of Loan Refinancing</strong><br /><br />•#Sometimes paying a smaller interest rate for the new loan is not guaranteed. Because there is an accumulated percentage for the new loan, it only means that it has a probability of paying bigger interests than before.<br /><br />•#If you have existing loans, finding a lending institution for your new loan would be difficult. Because an existing loans leave a mark on your credit history, and most of the lending institutions will consider you as a risk in their investment due to your poor credit history.Nirmala k. pantahttp://www.blogger.com/profile/16195953478983508760noreply@blogger.com42tag:blogger.com,1999:blog-2362007583556423473.post-71191755100404890592008-07-25T22:48:00.000-07:002008-10-15T22:47:41.878-07:004 Good Reasons Of Refinancing MortgagesDeciding to refinance your mortgage loan depends on different reasons for different people. It really is going to depend on your situation and knowing the reasons why you want to refinance. Let’s look at 3 common reasons people refinance their current mortgage.<br /><br /><strong>1.</strong> If you are paying too much every month for your mortgage it may be time to refinance. A drop in interest rates could mean big savings for you. If you have made your payments on time and have a good overall credit score refinancing at a lower mortgage rate could lower your monthly payment and help you have more money at the end of the month,<br /><br /><strong>2.</strong> If you have built up some equity in your home and you need to access some cash refinancing your mortgage could be just the place to get it. If property values have increased since you took out your mortgage loan you are sitting on a pile of money that could come in handy.<br /><br />Banks do not really care about what you want the money for. Common reasons to pull out some cash on the equity of your home could include paying for your daughter’s wedding, doing a home improvement, taking a vacation, or paying for college tuition.<br /><br />All the bank wants to see is that you have a way to repay the loan and they are secured by the equity in your home when they do the loan.<br /><br /><strong>3.</strong> If you have an adjustable rate mortgage that has crept up and is getting ready to roll into a high fixed rate this may be another reason to refinance. People take out an ARM to get a lower rate and to be able to qualify for a little bit more expensive home.<br /><br />After a number of years the ARM will be ready to settle into a fixed rate loan. Depending on the fixed rate you may be able to do better by refinancing. Your mortgage loan professional can help you decide the best route for you to go if this is the case for you.<br /><br /><strong>4.</strong> One other reason that people look at refinancing is to shorten the length of the loan. That is commonly done when you want to go from a 30-year loan to a 15-year loan.<br /><br />If your income has gone up and you determine you want to stay in the home you have for many years to come then this makes sense. Paying off your loan early gives you the peace of mind of knowing you own your home.<br /><br />These are 4 good reasons that you may want to refinance mortgage loan. The important thing is to know “why” you want to do it and make sure it is best for your situation.Nirmala k. pantahttp://www.blogger.com/profile/16195953478983508760noreply@blogger.com32tag:blogger.com,1999:blog-2362007583556423473.post-54808927654710847012008-06-26T22:48:00.000-07:002008-10-15T22:51:31.115-07:00All About Fha RefinancingAre you considering refinancing your home loan using an FHA mortgage? It’s been widely known that mortgage rates are close to all-time lows. FHA guidelines have changed and present a great chance for you to lock yourself into a low fixed rate mortgage. A normal conventional loan is a bit tougher to get nowadays versus an FHA loan. It is mainly due to the ladder allowing some derogatory credit, higher debt to income ratios, and financing above eighty percent.<br /><br /><strong>FHA Refinance Qualifying</strong><br /><strong></strong><br />It is important to understand what is needed to qualify for an FHA mortgage loan. Your monthly home loan payment, which includes principal, interest, taxes and insurance, needs to be less than 31% of your total income per month. Your total debt ratios should be no more than 43% of your total income. This is a guideline and can sometimes be lifted depending on other factors. For example, we have heard of total debt to income ratios loans below fifty-percent still being approved. In fact, some FHA lenders will approve your loan request while other lenders who have the exact same request will turn it down. So, the point being, do not give up and be discouraged if one lender turns you down.<br /><br /><strong>FHA Mortgage Credit Requirements</strong><br /><strong></strong><br />A borrower’s credit rating and history does play a role for an FHA refinance loan as far as credit requirements. Typically, a credit score above 580 is acceptable. Borrowers with past credit issues but who have demonstrated timely payments, have sufficient income, after that episode will not always be denied from loan approval. In fact, FHA will still approve your loan if you have a recent mortgage late payment but it depends on other factors.<br /><br />Borrowers who have had a recent bankruptcy are still eligible for a FHA refinance. A bankruptcy discharged for a minimum of twenty-four months still lets you qualify provided all other factors are sufficient. It gets even better if you’ve had a chapter 13 bankruptcy discharged for at least one year.<br /><br />Depending on the equity in your property, a borrower is allowed to refinance up to 98% of their home’s value determined by a state licensed certified appraiser who may also need to be approved by the lender. If it is a cash-out refinance the maximum allowed is 95% of your home’s value. As of late, there are some lenders who want bad loans off their books so they will permit them to a FHA short refinance loan. Get more information on refinancing into a FHA loan from this website.Nirmala k. pantahttp://www.blogger.com/profile/16195953478983508760noreply@blogger.com3tag:blogger.com,1999:blog-2362007583556423473.post-12216882643104496042008-06-18T22:21:00.000-07:002008-10-15T22:53:42.695-07:00How To Get Low Home Mortgage Interest Ratesour home mortgage rate loan can bring a serious impact towards the cost of your total home loan. Throughout the borrowing period, you as homeowner must expect to settle a significant amount of money to the lending company as the interest for the loan. Well, eventually, this is the most dominant aspect of doing business as the lending company. However, a home mortgage interest rate does not have to be much excessive in order for the lending institution to profit.<br /><br /><br /><br />You will find when you are qualify for a home mortgage loan you can lock into one of the option of low mortgage interest rates the company offered. You may decide you want a lower monthly payment and take out a 30 year mortgage with a great interest rate, or you may want to go with higher payments on a 15 or 20 year loan. Even with low mortgage interest rates most of your monthly payment will go to pay the interest on the loan, and a small amount will be applied to the principal that you borrowed.<br /><br /><br /><br />One of the factors to prequalify for a home mortgage loan is look at your credit rating or credit history. Should your record is clean than you have nothing to worry about, however if you have any charge-offs, or bills that go through to collection and officially reported to the credit bureau, than you have no choice that you need to clean that mishap first before try applying for a loan.<br /><br /><br /><br />Other important key factor that could give chance to get low mortgage interest rates is by keep ready with a sizable down payment. One of the way is to save money each month is by automatically deducted an amount of money from your paycheck into a dedicated savings account. A 20 percent payment is a decent enough for down payment. With this money, the lender will use them to secure the loan with insurance, for any chance that you may meet hard times and default on your loan settlement. By offering the down payment you won’t have to purchase extra insurance for the purpose of guaranteeing the loan.<br /><br /><br /><br />If buying a home at mortgage rates today is something you want to do, it may be to your advantage to take a little time and prepare. By doing your homework ahead of time while you are house shopping, you can also be shopping for the best and lowest mortgage package that you can qualify for. Go on line and check the different lending companies’ websites and check their rates of interest.Nirmala k. pantahttp://www.blogger.com/profile/16195953478983508760noreply@blogger.com1tag:blogger.com,1999:blog-2362007583556423473.post-87809164656153933102008-06-14T20:15:00.000-07:002008-06-14T20:18:54.922-07:00Bad Credit Remortgage – Trim Down Monthly PaymentsOnce there are high amounts of repayments to be made each month towards the loan that you took at high interest rate sometime back, it is very likely that you missed some of the payments that led to a blemished payment record. Therefore, it would be prudent to opt for bad credit remortgage that not only gets rid of the old loan but your monthly outgoings too are reduced. However, it should be availed in a careful manner to avoid falling into a debt-trap.<br /><br />A history of bad credit record like making late payments, having arrears, payment defaults or CCJs, is usually not a big hurdle in the way of replacing the existing mortgage with a new one. This is because your home is taken as collateral for the new loan. To cover for the risks, the lenders may charge interest at little higher rate.<br /><br />Bad credit remortgage replaces your existing home loan by immediately paying it off. Benefits in doing so include lowering your monthly outgoings to larger extent, as the new loan is usually given at lower rate of interest as compared to high rates on the existing loan. So, you can save money on interest payments. You can choose to repay the remortgage loan in 5 to 30 years, depending on your repayment capability. However, do not opt for larger duration, as it may result in high overall interest payments.<br /><br />The amount you can borrow will depend on value of collateral and your remaining payments towards the existing home loan.<br /><br />Comparing various offers of bad credit remortgage is crucial in finding a suitable deal. Better, take out the rate quotes and ask the lenders for their additional charges. You should compare the APR in order to know the overall costs. Since your blemished payment history is to be repaired, it is essential that you repay the new loan in timely manner.Nirmala k. pantahttp://www.blogger.com/profile/16195953478983508760noreply@blogger.com0tag:blogger.com,1999:blog-2362007583556423473.post-43676328036307620582008-06-09T19:49:00.000-07:002008-06-09T19:56:38.608-07:00Three Tips For A Safer Property Investment OpportunityReal estate is a gamble. Yes, there’s plenty of money to be made in it, even with the current downward financial trends, but a property investment opportunity isn’t an automatic way to get a good return on your money.<br /><br />are plenty of websites that will show you “how easy it is” and offer you a number of “get rich quick” opportunities into which to sink your capital, but think about it, if it were that easy, wouldn’t there be more people doing it? Wouldn’t there be less middle people trying to hook up investors with deals? Of course there would, and that’s why I’m here to get you to stop making an irrational decision to jump on the first property investment opportunity that comes your way!<br /><br />Before you even start thinking about putting your capital into a real estate project, you must have a well thought out strategy about what you hope to get out of the deal. For example do you want to buy to flip, resell as fast as you can for a higher price? Or are you more inclined to put your money into property you can let for an additional income? Speak to experienced property investors and learn from what their experience. Read everything you can about the current property market, and keep your knowledge base up-to-date.<br /><br />Hire professionals who know what you don’t. Even learning all there is to know about the current state of the property market around the world, you will find that paying for a professional property legal expert will ensure that you don’t lose out in terms of property tax issues. They will also ensure that you have all the relevant paperwork completed for both buying and selling when you are involved with a property investment opportunity.<br /><br />Your regular solicitor may well know something on property law, but I advise you to get someone who specializes in property law to handle your investment transactions as they will be much more familiar with the industry and any scams that are making the rounds. Try to find someone who is recommended by at least two other real estate investors, or ask for letters of recommendation from anyone you think might be suitable.<br /><br />Watch out for property auctions. These are a great way of getting a good bargain, and can give you a good return on your money, but only if you know what you’re doing. The problem with auctions is more likely to be you, than the property! The property ought to be as listed, but you first of all need to do your homework and assess how much the property is worth and how high a ROI you can expect from it.<br /><br />However, in the electrified atmosphere of an auction room, it’s easy to increase any carefully calculated bid maximum that you’ve set yourself. If you’re going to find a property investment opportunity via the auction route, remove the possibility of lowering your return by getting someone else to attend the auction and bid on your behalf!<br /><br />There are many other things you can to maximize your profit margins on any property investment opportunity, but following these 3 simple tips above will get you started on the road to what should be a good return on your capital.Nirmala k. pantahttp://www.blogger.com/profile/16195953478983508760noreply@blogger.com1tag:blogger.com,1999:blog-2362007583556423473.post-62395821620752029192008-06-07T20:34:00.000-07:002008-06-09T20:00:12.113-07:00Flipping Real Estate, Not Quite "nothing Down"The present scenario of blistering real estate prices has made “flipping” the hottest rage. It basically involves buying an under priced property, refurbishing it and then selling it at market value to make a tidy profit. In places where property prices plummeted, flipping has been a major flop. However, it can still be a worthwhile option, provided you learn to identify the pitfalls. Otherwise, as someone famously proclaimed “It might not be as lucrative as you thought”. Flipping can be seen as the latest fad in the “nothing-down” movement. Nothing down movement basically means to get into a deal without any sort of initial investment. Of late, it has sort of developed into a tool to overcome objection. When real estate gurus are trying to sell information, they encounter the frequent “but I don’t have any money” response which they need to conquer if they are to make a sale. The bitter truth is that real estate investors generally do not use any “nothing down” techniques.<br /><br />Not quite “nothing down”: The reality of flip business is quite the contrary to what you may have believed, flipping is all about cash. One cannot expect to get a mortgage as the business costs would be extremely high, considering the fact that you will own the property for a couple of days. Also, it's not possible that you make use of the buyer’s cash because you really don’t have a buyer until and unless you have closed the deal. The amount will usually be far greater than a wannabe could obtain and could mount to hundreds of dollars. Real flippers tend to lose money or earn little profit on certain deals, but its okay since they make it up, by gaining exceptional profits on other deals. However, a wannabe is actually trying to make a profit on every deal he/she makes because they only have that one deal at that time. Unfortunately, the flipping business does not allow itself to be prone to outcomes that are predictable.<br /><br />Risks involved: A lot of real estate investment techniques tend to suspiciously sound like “brokerage”, sadly flipping is one of them. To do a brokerage deal, you are required to possess a broker’s license or be a salesman with a license, who is affiliated to a licensed broker. Normal regular people, think that they can get around the system by not calling themselves brokers. The law has however enlisted a doctrine called “substance over form” which means it’s not what you call yourself that matters, but what you do. If you do look like broker, you’ll be asked to produce the license and hold you to the standards of behavior of brokers, which is notably a fiduciary duty.<br /><br />Flipping looks dangerously similar to getting a seller and buyer together just for the sake of commission. This activity in simple words can be termed as brokerage. The practice of flipping has reached hysterical propositions with popular real estate markets like South Florida, witnessing flipping contracts on condos even before they are built. Certain states like New Jersey prohibit “net listing”. It’s a practice in which the seller says “just get me certain amount of dollars and the rest you can keep whatever the amount higher than that”. Net listings came to be ethically questionable as brokers tend to recommend less than the market price to increase his take, again flipping notoriously resembles net listing.Nirmala k. pantahttp://www.blogger.com/profile/16195953478983508760noreply@blogger.com0tag:blogger.com,1999:blog-2362007583556423473.post-1069626884170313852008-05-31T19:29:00.000-07:002008-06-09T20:10:47.852-07:00The Many Different Home Improvement RetailersIt seems that every day, there are more home improvement retailers popping up around the corner. Okay, maybe not everyday but it does surely feel that way as more in likely, where ever it is that you are, within at least a thirty or forty minute drive, you will find yourself at one of the many home improvement retailers that are advertising themselves all over the television and Internet. And for many people, this has never been a thought that crossed their mind, as it seems natural now to find these large chains everywhere.<br /><br />Many people actually do see a lot of benefit in having some of the world’s largest home improvement retailers right in their back yard, or so to speak. For the many homeowners that are trying their hand at self home improvement, having these large home improvement retailers right around the corner is a blessing.<br /><br />They are constantly having to run and buy new supplies or building materials for their home. For homes that seem to always have something going wrong, it is very convenient to have a few home improvement retailers right in town as it saves them a lot of time and energy then having to drive to several smaller stores which have limited supplies compared to the large chains.<br /><br /><strong>Who They Hurt</strong><br /><strong></strong><br />But as with anything that is new, bigger, and better, there seems to always be someone or some business left behind in the dusk. It has been said by many that the large home improvement retailers have put so many small town mom and pop type shops out of business.<br /><br />These businesses that have sometimes been around for generations are suddenly being wiped out and that company and family have lost their income. But other argue that while the bigger home improvement retailers are putting little stores out of business, the jobs that are gained from that store opening is worth it for the community.<br /><br />Still, even with the increase in jobs for the area that the home improvement retailers provide, there is a sense of customer focus that is lost. The idea is that the smaller stores are more personal and can give better attention to each individual customer. But, in a world where everyone is on the go and has no time to waste, we may be looking at a new way of shopping where the customer doesn’t want that one on one attention and would rather trade that comfort for the convenience of the home improvement retailers.Nirmala k. pantahttp://www.blogger.com/profile/16195953478983508760noreply@blogger.com0tag:blogger.com,1999:blog-2362007583556423473.post-5803323273417201162008-05-28T20:57:00.000-07:002008-05-28T21:07:02.676-07:00Compare Flexible MortgagesThis article is an effort to help the many British homebuyers who are continuously struggling with the task of comparing flexible mortgages. This is thanks to some of the mortgage service providers across the UK, who use complicated mortgage terms to illustrate various points, thus leaving naïve borrowers bemused and sometimes mislead. Therefore, if you have been unable to understand the specifics of a mortgage deal and are still occupied with the mission of comparing flexible mortgages, read on and open the doors to the flexible mortgage mystery.<br /><br />About a Flexible Mortgage<br /><br />A flexible mortgage is a concept which made its way to the UK mortgage sector in 1995. Prior to that, the concept was quite popular in Australian mortgage market and is also referred to as the Australian Mortgage. Since the induction, a flexible mortgage as a notion has received a probing reaction, with no definite patronage. But despite this, the schema didn’t fade; rather it prevailed and established its roots deep into the mortgage market. This mortgage performance can be better understood, in consonance with the mortgage terms.<br /><br />Flexible mortgages refer to mortgage deals wherein, the homebuyer has considerable advanced flexibility to repay. In this package, there are no fixed interest charges and also there is the added advantage to underpay, overpay or enjoy longish payment breaks. These leisurely features, when compared with the fixed mortgage plan, may seem like the ideal mortgage account, but a cautious approach is needed because of two key negative aspects. The first negative aspect is that the flexibility comes with a high fee schedule, especially with the case of regular underpayments and payment breaks. The second negative aspect is the definite requirement of excellent financial control for this mortgage account to efficiently work.<br /><br />Therefore, if you are trying to compare flexible mortgages, first be clearly aware of the above mentioned clauses. In case there are any doubts on either of the two, it is suggested that the comparison be broadened to include all fixed mortgage offers, because the latter would offer stability in an easy to follow pattern.<br /><br />The Requirement Set<br /><br />If you are definitely clear about the suitability of a flexible mortgage with reference to your personal circumstances, then the exercise of comparing flexible mortgages should begin with the creation of an input catalogue, listing such items as the loan to value figure.<br /><br />The task commences with evaluation of the property. The calculated property value will help derive the loan to value figure, without which the comparison is not possible. As evident the ratio also requires another figure i.e. the loan, which corresponds to the second item in the list. After these two values, the next calculation should be with respect to earnings and conception of a personal circumstantial chart. This chart should clarify the best possible definition of your perceived requirements during the mortgage period, thus helping you work out the final mortgage cost, taking into account needed underpayments, overpayments or payment holidays. Another important entry to the list, while you compare flexible mortgages, relates to the applicable interest type. The interest rate could be flexible, fixed, capped, varied or BoE (Bank of England) rate based. And then there are specific deal terms, for instance a few mortgages could allow cash back and more.<br /><br />With this list ready you could either feed the data into an online calculator /comparison chart, or refer to a professional broker. The latter is advised, as a mortgage is a very important concept, with serious bearing on the overall lifestyle, thus demanding thorough scrutiny. Moreover, the professional broker would take into account all relevant personal factors before they would compare flexible mortgages with you.Nirmala k. pantahttp://www.blogger.com/profile/16195953478983508760noreply@blogger.com25tag:blogger.com,1999:blog-2362007583556423473.post-84893828725669470472008-04-16T04:42:00.000-07:002008-06-09T20:19:13.077-07:00Secrets Of Equipment Leasing: Secrets 1-6Equipment leasing enhances a company's ability to respond to changing market conditions and to take advantage of new opportunities. Lease financing is a much more financially-intelligent decision than taking out a bank loan or purchasing with cash. Investing cash reserves in equipment makes a company asset rich and cash poor.<br /><br />Today, more than 80% of all U.S. corporations lease some or all of their equipment. It is the use of equipment, not ownership of equipment that generates profits. This simple precept explains the rise of equipment leasing activity, especially as equipment life cycles shorten in this high-tech age. Whether opening a new business, expanding existing facilities or opening an additional location, the method you choose to acquire equipment can have a profound impact on your business, credit and cash flow.<br /><br /><strong>Secret #1:</strong><br /><br />Virtually all types of equipment in almost any industry can be leased. Leases are specific. You can choose the manufacturer, the model number, the source and even accesories. You're covered by all conventional manufacturers' warranties. And because lease payments are usually lower than other forms of financing, your leasing dollar allows you to acquire more of the equipment your business needs or more advanced equipment. With an equipment lease, you get 100% financing so the amount of cash needed up-front is reduced. Most soft costs can be included: delivery charges, installation, training, and software to ensure that the equipment is productive immediately, speeding your return on investment.<br /><br /><strong>Secret #2:</strong><br /><br />Bank loans can be dramatically more expensive than anticipated because of the large security deposit that is required. Down payments for bank loans will usually range between 20% and 40%. The result is that there is a tremendous difference between the effective APR and the stated APR. A stated 8% bank rate with a 25% down payment is actually equal to a 21% APR on a five year loan.<br /><br /><strong>Secret #3:</strong><br /><br />Even if you have the cash to purchase your equipment, purchasing is rarely, if ever, the best choice. With equipment leasing, cash can be used for other business requirements such as expanding sales, starting new marketing programs, offering quantity discounts, replenishing inventories, opening a new line of business, or increasing cash reserves. Using cash for necessary business expenses that cannot be financed is much more intelligent decision-making than spending it on equipment that is worth less and less as time goes by. Not only are there higher payments for traditional financing, but you'll have to come up with the entire amount for a cash purchase or a substantial down payment with a bank loan if you decide not to lease.<br /><br /><strong>Secret #4:</strong><br /><br />With the lower, fixed-rate payments of an equipment lease, you're protected against inflation. Cash outlays are deferred, as compared to an up-front purchase. In the future, "cheaper" dollars will be making your lease payments as inflation lessens your cost. You will be making your monthly payments to the leasing company with ever-inflating dollars during the term of the lease. This actually reduces the cost of financing to you in real dollars, a tremendous advantage that is often overlooked.<br /><br /><strong>Secret #5:</strong><br /><br />Leasing equipment offers a wide range of benefits, from consistency with expenses to increased cash flow. But perhaps the most significant advantage of leasing is the ability to maintain up-to-date equipment. Leasing allows you to easily and affordably add equipment or upgrade to a completely new piece of machinery to meet future needs. This lets you transfer the risk of being caught with obsolete equipment to the leasing company.<br /><br /><strong>Secret #6:</strong><br /><br />With the scheduled updating of your business equipment offered through equipment leasing, you can maintain a competitive edge, keeping you ahead of your competition. With an equipment lease, upgrading to newer technology during or after the lease is easy. In contrast, when equipment is purchased with cash or bank financing, there is an incentive to postpone any upgrade until the original investment has been recouped through depreciation, which hinders your flexibility. A planned replacement program avoids obsolescence and keeps you up to date with the latest state-of-the-art technology. An additional, often-overlooked disadvantage of ownership is equipment disposition. Ownership of equipment, the result of the full repayment of bank loans or cash purchases, includes several additional costs that are significant and can be avoided with leasing. These costs are associated with removal, environmental fees for disposal (for certain equipment categories, such as computers) and the costs of remarketing.<br /><br />In summary, there are many "Secrets of Equipment Leasing" that require significant research to uncover. These "Secrets" can be determining factors in the survival and profitability of any business enterprise. As such, they warrant in-depth consideration to determine their potential contributions to every individual equipment acquisition situation. Nearly 100% of the time, bank loans and cash purchases are always significantly less beneficial and less advantageous than equipment leasing.Nirmala k. pantahttp://www.blogger.com/profile/16195953478983508760noreply@blogger.com1tag:blogger.com,1999:blog-2362007583556423473.post-40043041305331726432008-03-26T00:56:00.000-07:002008-03-26T01:02:49.832-07:00Loss Mitigation NegotiatingThe big secret that is not really a secret is that your home lender does not want your home. Certain people may tell you that your lender hopes that you will not make your payments so that your lender can get your home. This simply not true. Your home lender makes money on home loans, not by selling repossessed homes.<br /><br />Because mortgage lenders do not really want your home, most lenders have set up loss mitigation departments to help people who are behind on their monthly mortgage payments. These loss mitigation departments are there to reduce the potential loss that could be suffered by your lender. Generally the loss mitigation departments have some discretion on how they can help you. Often they can give you more time to pay your payment, defer a payment until the end of the loan payment period, or modify your existing mortgage (if you agree to modification). They may accept a deed in lieu of foreclosure.<br /><br />Loss mitigation negotiating is really nothing more than talking with your home lender to see if there is a way that you can pay your mortgage payment so that your mortgage lender will not lose money. Maybe you need more time to pay, maybe you need to skip a payment, or maybe you need a mortgage modification.<br /><br />The first thing is to talk with your mortgage lender. Tell them your situation and see if they can offer you some help. Consider what your mortgage lender says and determine if it will or will not help you. If it will help you, accept and do what they offer. If it will not help you, make an offer.<br /><br />If you do make an offer, be absolutely sure that you can do what you offer to your mortgage lender. For example, if they say that they are sorry, but that they cannot help, tell them that you can pay them on a certain day, that you want to avoid foreclosure, and that, if they add additional fees such as court costs and attorney fees, you will not be able to pay. Then they have to think:"should we wait several days to get paid and avoid additional costs, or do we go ahead and spend the money to foreclose?" Your home lender has to make a decision on what is best for them. And I believe that they will give you more time.<br /><br />It is important that you be able to do what ever you offer to your mortgage lender. If you say that you can pay on a certain day, you need to pay by that certain day. If you don't, your lender will not believe you in the future. By the same token, if you do what you say you will, your lender will believe you in the future. And loss mitigation negotiating will be easier in the future.<br /><br />This article is general information. If you have any questions of any nature about avoiding foreclosure, talk with a lawyer licensed in your state.Nirmala k. pantahttp://www.blogger.com/profile/16195953478983508760noreply@blogger.com3tag:blogger.com,1999:blog-2362007583556423473.post-20607809501767185362008-03-12T01:19:00.000-07:002008-06-09T20:24:12.089-07:00People Mover FinancingPeople movers help in transporting people from one place to another. They are essential in amusement parks and in other large sites. They are also vitally important in certain industries. People movers are becoming essential due to several factors like age, advanced technology, parking lot operations and so on. Due to their functionality they carry high price tags. Hence many companies require people mover financing to acquire them.<br /><br />Bus is a form of people movers which help transporting group of people from one place to another. It is spacious as well as comfortable. It comes in different sizes and shapes. There are many models of buses like passenger style bus, mini bus and so on. Customer cruiser is one important type of buses which are used by sports star or rock band. It has number of advanced facilities to ensure great comfort to the passengers. Buses can also be classified as tour bus, articulated bus, public transportation bus, school bus and so on. Since buses can be used in multiple functions, they are used as business vehicles also. Due to their functionality, they are quite pricey. Hence many companies look for people mover financing to acquire any number of buses they need. Taxi or cab is yet another form of people movers. Taxis have been in existence for so many years. They are doing the same function of transporting people from one place to another. But they have been added some sophisticated features like computer assisted dispatch, wheel chair access and GPS systems. These additional features make them quite expensive. Hence most of the companies find people mover financing often desirable.<br /><br />People movers help generating revenues of the companies engaged in transportation business. They help in transporting people to long distances also. Though expensive, they are essential for running the business for certain companies. Hence they need to acquire them with the help of people movers financing.<br /><br />Due to the high cost, many financial institutions may not be ready to finance people movers. However there are some genuine financing companies that have experience in the field of business vehicle financing. They can understand the need for people movers in certain businesses and so they are ready to grant financial assistance to acquire any number of vehicles.<br /><br />Since people movers come in highly customized models nowadays to increase the comfort of the passengers, they are quite pricey. This makes it impossible for many companies to acquire them with their own money. Thanks to some valid financing companies, most of the business owners find it easy to get people mover financing nowadays.<br /><br />The legitimate financing companies grant the desired amount to acquire people movers to companies without any embarrassing procedures. They also provide fast approval. Hence the companies can get the financial assistance even on the same day itself. Since people movers can help in generating more revenues, the companies would not find it difficult to repay the low monthly installments. Hence people movers financing is not an expense but an investment for those companies.Nirmala k. pantahttp://www.blogger.com/profile/16195953478983508760noreply@blogger.com2tag:blogger.com,1999:blog-2362007583556423473.post-41696510470132829392008-03-11T02:35:00.000-07:002008-06-09T20:30:48.901-07:00Striper And Paver Truck FinancingStriper and paver trucks are invaluable vehicles for any paving companies or for government organizations. These vehicles are useful in spraying paint in neatly striped lines. They help saving much time. They are useful in road or parking lot operations. Paving a driveway and striping a road is not possible without striper and paver trucks. The need and convenience increases their price and so striper and paver truck financing is the best option to acquire them.<br /><br />The companies that are in immense need of these vehicles need to consider a reliable financing company that has experience in financing business vehicle to get striper and paver truck financing. Their experience makes them understand the need of these trucks in certain businesses and therefore they would provide fast approval of the desired amount to acquire the vehicle.<br /><br />Striper and paver trucks are of various types. The truck mounted street striper is a truck that helps in painting the edge and middle part of stripes fast. They also help spraying paint neatly in the stripes. Since everybody wants road or parking lot with stripes, the need of these vehicles is increasing more. Their convenience and time saving features make them carry a high price tag. Hence many companies look for striper and paver financing.<br /><br />Tow behind street stripers are yet another important vehicle which helps painting neat stripes even on hard surfaces. They are more compact and can be used even without a truck. The compact design and extensive services of these vehicles make them favorite among most of the companies. However these features can make the vehicle expensive. Therefore striper and paver truck financing is often preferable.<br /><br />Asphalt paver truck is a valuable vehicle which comes in different configuration to suit different requirements. They are used to distribute asphalt on road evenly on roads, parking lots and other required areas. Since they help in saving time they are expensive. The striper and paver truck financing is the best option for companies that require these trucks.<br /><br />Financing striper and paver truck may not be easier. Due to their limited scope, many traditional financial institutions may not be ready to finance them. However there are some reliable financing companies that can understand the need of striper and paver trucks by certain companies. Hence they are willing to provide financial assistance to he companies without any troublesome procedures.<br /><br />Since such financing companies have great experience in financing business vehicles, They have some specialized knowledge about these trucks. Hence striper and paver truck financing is easy and becoming possible for almost all companies.<br /><br />The valid financing companies do not require any cumbersome application procedures. Since the private paving companies and other organizations that require these types of vehicles can approach them easily and get fast approval to get striper and paver truck financing.<br /><br />Some genuine financing companies accept online applications. Therefore the companies need not waste more time in the tiresome application process. Only few minutes are required to fill the simple application form of such financing companies. They also offer financing at low interest rates and so the companies would find it easier to repay the monthly installments.Nirmala k. pantahttp://www.blogger.com/profile/16195953478983508760noreply@blogger.com3tag:blogger.com,1999:blog-2362007583556423473.post-30190226616751915982008-03-07T00:17:00.000-08:002008-03-07T00:27:53.757-08:00The Fundamentals Of Mortgage RatesWhat makes mortgage rates fluctuate? They are talked about so often that you would think this is common knowledge. But the simple truth of the matter is, most people do not even know how these rates work! Among the many entities that people think are the cause of their movement are the Fed, the economy, inflation, the President, etc., etc. The real answer is that rates are moved by a number of factors, one of them being, well, you!<br /><br /><strong>The Money Tree</strong><br /><br />Money for mortgages comes from a variety of different sources. Some of it comes from banks and brokerages, but a lot of it comes from investors in the capital markets. Bonds buyers come to these markets looking for good buys. Sellers of these bonds must compete with each other to get the money of these buyers. They do this by offering varieties of the investment instrument which differ with regard to risk structures and returns over time. These products also compete with other investment instruments like U.S Treasuries, corporate bonds, foreign bonds, etc.<br /><br />Investor demand moves mortgage rates. They have plenty of places to put their money. Their choices directly affect the movement of rates. In a crowded marketplace, mortgages must be considered attractive enough to invest in. Of course, it is not really as one-dimensional as it may seem. Mortgage rates are affected by any number of factors in the capital markets alone.<br /><br /><strong>The Other Things</strong><br /><br />Other investments also affect mortgage rates. For example, there is a very direct relationship between mortgages and U.S. Treasuries. Another factor includes "volume" available. Unlike other investments, no one can really tell how many mortgages will be on the market at any given time. Drops in interest rates produce large buildups of loans. This means that the supply of bonds goes up in a relatively short period of time. Investors cannot absorb this at once. Oversupply with little demand devalues the investment instrument.<br /><br />There are also time problems when it comes to mortgage pricing. It takes hours or days for prices changes in capital markets to get to wholesalers or retailers. Also, not all of the changes are fully reflected in street prices. Depending on the fluctuation, rates may remain static. Another example is when a minor increase in bond yields is followed by a reduction later in the day and does affect the mortgage rates at all. Inflation also plays a large role in fluctuations.<br /><br />All this is an obvious oversimplification of a very deep topic. You would do well to read up some more on this. This is especially true if you are thinking of obtaining one or getting a new one. You must be armed with the right knowledge to make wise business decisions. That is the only way you will ever show a profit in the end. Wise business decisions are based on what you know. So improve what you know by reading and consulting people. In the end, your bank account will thank you for it.Nirmala k. pantahttp://www.blogger.com/profile/16195953478983508760noreply@blogger.com1tag:blogger.com,1999:blog-2362007583556423473.post-49353504898316277572008-03-02T01:40:00.000-08:002008-03-02T01:45:54.295-08:00Think About These Five Reasons When Deciding To RefinanceAre you looking for a way to put some extra money in your pockets every month? One of the more popular trends is refinance your home. Just by doing something so simple you can bring down your monthly mortgage payment, raise some extra cash, and consolidate some outstanding debts with high interest rates. There are so many different reasons why refinancing your home is a good idea.<br /><br />The thing is that there are a number of complexities involved in refinancing. This can sometimes cause some confusion when shopping for a mortgage refinance. It even causes some doubt whether or not refinancing really is a good option for them. Here are five reasons why it is to help put your mind at ease:<br /><br /><ul><li><strong>Lower monthly payments</strong> - It makes a lot of practical sense to decrease your interest rate and overall payments even if it causes you to pay a point or two. I recommend this strategy to people that don't plan on moving anytime soon. The reason why is works out over the long run is because the monthly savings pay for the cost of the mortgage refinance. </li><li><strong>Go with an adjustable rate over a fixed rate mortgage</strong> - If you're one of those risk takers then think about an adjustable rate mortgage. These have a tendency to provide lower initial monthly payments for those who are willing to gamble on upward market adjustments. They are mostly recommended to home owners that don't plan on owning the property for more than a few years. However, it may not be the best move if you are living in your home for the long run. If that's the case, you are better of going with a fixed rate mortgage instead.</li><li><strong>Get away from balloon payment programs</strong> - These balloon programs are very similar to adjustable rate mortgage programs. Many people find them attractive because of the lower rates and lower initial monthly payments, but the problem is when you still own the property at the end of the fixed rate term, the lender will expect you to pay the entire remaining balance. If you made the mistake of signing up for a balloon program, it is pretty easy to switch back over into a new adjustable rate mortgage or fixed rate mortgage.</li><li><strong>Get rid of private mortgage insurance</strong> - Often times you'll see lenders offering zero down payment options which allow homeowners to buy a home with less than 20% down. What they do tell you is that they also usually require private mortgage insurance to do so. This is how they protect themselves from a loan default. Most homeowners become eligible to get rid of their private mortgage insurance with a mortgage refinance loan just as long as the value of the home increases and the balance decreases.</li><li><strong>Cash in on your home's equity</strong> - One of the best places you can find extra cash is in your home. I'm not talking about in between your couch cushions either! Most homes increase in value. This gives you the ability to take some of that and use it as cash. I know plenty of homeowners who have used that cash to pay off credit cards, make home improvements, or even buy a brand new car. Cash-out mortgage refinance transaction are aksi tax deductible too.</li></ul>Nirmala k. pantahttp://www.blogger.com/profile/16195953478983508760noreply@blogger.com3tag:blogger.com,1999:blog-2362007583556423473.post-11457033786903000822008-02-28T02:06:00.000-08:002008-03-02T01:52:52.695-08:00Why Re-mortgage?It is estimated that more than half of all borrowers – that is most of the people in the UK - are paying too much for their mortgage each month. Usually these people are paying a standard variable mortgage rate when there are lower rates available from other providers. Unsurprisingly banks are unwilling to let borrowers flit between mortgages once they have them hooked on to a high rate and in recent years mortgage and re-mortgage fees have rocketed. We had to pay for those fancy introductory rates somehow.<br /><br />Many people do not see re-mortgaging as a solution, but it can often prove an economic option for people who feel they are paying over the odds. Lenders are never keen to brag about cheaper deals once they have you signed up, but even so these deals are there for people who ask. In fact switching provider will often result in lower monthly payments, though huge re-mortgage fees can cancel out much of the benefit.<br /><br />As a result it is often difficult to know whether it makes sense to re-mortgage, and generally it comes down to a case of ringing round for some quotes and then doing a few sums on the back on an envelope. Obviously, you need to make sure that the lower rate of interest you get from changing provider is not lost through the high charges that lenders demand for a switch.<br /><br />With the mortgage market in the condition that it is, it is now increasingly difficult to find an eye opening deal, but that is not necessarily a reason to give up. If you are struggling to keep up with payments it may well be worth considering a re-mortgage and finding out about the options open to you. Banks are never reluctant to accept more of your money, and if they feel you would benefit from having longer to pay off your mortgage then they are likely to do what they can to help.<br /><br />In any case this is not a process that you have to undertake on your own. There are a plethora of financial advisers who can help you, though it is worth checking exactly who they are employed by. Some work for lenders and will therefore only recommend products from one mortgage provider or a small panel of providers.<br /><br />But there are plenty of independent mortgage brokers who will look at the whole of the mortgage market in a bid to find you the best deal. Alternatively you can you use price comparisons sites on the internet to give you a rough idea of whether re-mortgaging could prove cost effective. The free quotes they offer do not always take all the conditions and features of products into account however. Though on offer may appear cheaper it may exclude features that would save you money in the long-run, and it is always worth checking these over before you commit.<br /><br />Be aware also that brokers may take commission from the provider they recommend to you, and also that some advisers will also charge you for independent mortgage advice. As with any major financial decision, the best advice is always to shop around, and not simply trust the opinion of the first broker you come across.Nirmala k. pantahttp://www.blogger.com/profile/16195953478983508760noreply@blogger.com2tag:blogger.com,1999:blog-2362007583556423473.post-17211023616516022382008-02-26T01:25:00.000-08:002008-02-26T01:53:07.077-08:00Shop Around For Mortgage Payment Protection CoverMortgage payment protection cover can be a valuable product to have in your corner if you should find yourself incapable of working. Losing your income through accident, illness or unemployment could leave you struggling when it comes to the financial commitments of your mortgage. However, if you would be eligible to claim against a protection policy then payment protection for your mortgage could provide you with a tax-free income. You do have to make sure that the exclusions found in all payment protection policies would not stop you from claiming. Suffering a pre-existing medical condition, being retired or self-employed, or not being in full-time employment could stop you from being eligible. These are just some of the reasons frequently found in a policy and providers can add in others. With this in mind, it is essential that you compare not only the quotes but also the terms and conditions.<br /><br />Exclusions are complicated so do look into them very carefully. While one of the exclusions is suffering an ongoing illness, this can be overlooked if you have not suffered from the illness within two years of applying for insurance protection. When it comes to those who are self-employed then they would be eligible to claim if they were to stop trading altogether through involuntary means.<br /><br />Payment protection insurance would provide you with an income that would cover your monthly mortgage outgoings and essential related payments such as insurance. This means that you are able to recover with the peace of mind that your mortgage debt would be safe. Homeowners who believe that the state would step in and provide for them in their time of need may be disappointed. The State does provide assistance but there are very strict criteria to meet. Those who have savings of more than £8,000 or whose partner works full time would not receive a penny. Also, if you took your mortgage out after October 1995 then you would have to wait nine months before you would see any benefit, and then you would only get help with the interest part of the mortgage up to £100,000.<br /><br />Mortgage payment cover is usually offered alongside the mortgage at the time of borrowing but in the majority of cases this is a very expensive way of taking out cover. A far better option is looking around and buying the cover independently from a specialist in payment protection. There are many advantages of taking out the cover this way, besides the obvious benefit of making huge savings. A lack of information given at the time of buying cover leads many to take out a policy they could not possible hope to claim against. However, an ethical payment protection specialist will make available on their website all the information needed to make an informed decision regarding the policy’s suitability.<br /><br />The mortgage payment protection cover that a specialist will provide will ensure you have an income from between day 30 and 90 of being unable to attend work. Each month you would get a payment which would continue for between 12 to 24 months if needed. The relief that this payment brings allows you to recover more quickly and leaves you free to concentrate on your wellbeing and, in the case of redundancy, to find another job.Nirmala k. pantahttp://www.blogger.com/profile/16195953478983508760noreply@blogger.com1tag:blogger.com,1999:blog-2362007583556423473.post-4169686553617193562008-02-24T01:55:00.000-08:002008-02-26T02:05:23.519-08:00Mortgage Protection Can Take Over Where The State FailsIndividuals who rely on State support if they lose their income could be at risk of losing the roof over their heads. While some help towards the interest part of the mortgage can be available, you do have to qualify and having more than £8,000 in the bank or a working partner could mean you lose out. Mortgage protection can take over where the State fails, providing you choose the correct policy that will pay out in your circumstances.<br /><br />While you do have to qualify for mortgage cover it does give far better protection for those who lose their income. The main exclusions include being of retirement age, suffering from a pre-existing medical condition, only working part time or being self-employed. The provider can also include other exclusions so you have to read the terms and conditions thoroughly before taking out the cover. However, suffering from a pre-existing medical condition does not necessarily stop you from claiming. Providing the illness has not bothered you during the last two years you could still be eligible.<br /><br />Once you have decided that a payment protection policy is suitable you then have to find the cheapest possible quotes. Taking a policy that is offered alongside the borrowing is usually the most expensive option. The cheapest quotes will usually be found with standalone providers and along with this they also offer all the information needed to be able to decide if protection is right for your circumstances. The very best providers can help you to save as much as 40% when compared to the high street lender. Quotes that providers give are based on the amount you wish to cover each month and age when applying, and you usually pay for the policy through monthly premiums.<br /><br />After finding the cheapest quote and comparing the terms and conditions you can sign up for a policy. The policy would start to pay out once the individual had been out of work for between 30 to 90 days. The policy would then carry on giving the payout for as long as 24 months with some providers, but it can be only 12 months with others. Again, the terms have to be checked.<br /><br />While a specialist is the best way to get information regarding mortgage protection, in March 2008 comparison tables will introduced in order to help consumers understand policy details. It is hoped that with the introduction of these tables all payment protection products will be easier to compare and choose. They will tell the consumer how much a policy would cost in total and make them aware that certain exclusions exist. They will take the consumer through a series and questions and answers, to ensure they choose the right type of cover for their needs. Mortgage cover is just one type of payment protection policy and income protection might be more suitable. There is also loan payment protection and all three policies will pay out if you should become unable to work. It is just a matter of deciding which policy is the most suitable for your particular circumstances before buying.Nirmala k. pantahttp://www.blogger.com/profile/16195953478983508760noreply@blogger.com2tag:blogger.com,1999:blog-2362007583556423473.post-64234220511840450172008-01-28T04:50:00.000-08:002008-03-02T01:56:26.748-08:00How To Re-mortgageMore than half all homeowners in the UK are paying too much for their mortgage according to a recent survey. So if you are struggling to keep up with mortgage payments, or just feel you are paying over the odds on your home loan, then re-mortgaging may be the answer. It can give you lower monthly payments and even save you money in the long-term so there is little to be lost from at least exploring the possibility.<br /><br />In recent years banks and building societies have massively increasing mortgage fees in order to pay for headline interest rates and prevent ‘rate tarts’ flitting between providers’ introductory offers. You will need shop around and do your sums to make sure that what you gain through switching lender – lower monthly payments - is not lost through higher charges. Unless you make a substantial saving from making a move then you may well be better off waiting a couple of months to see if a better offer becomes available as interest rates fall. But once you have decided to re-mortgage, how do you go about the getting the process started?<br /><br />Firstly you need to obtain a ‘redemption statement’ from your existing lender. This will tell you how much you owe, and detail any redemption penalties or early repayment charges that will be incurred if you change your deal. It is important to pay attention to this because fees can often be prohibitive and cancel out much of the benefit of a new cheaper rate.<br /><br />After deciding which deal to move to, it is then time to fill out the dreaded application forms. These will ask for details about your income, and documents such as bank statements, pay slips, a P60 form, mortgage statements and proof of identity. Your new lender will also value your home which can cost between £200 and £300, and may also charge you an arrangement fee which will be at least another £200 can end up costing your more than £1,000. As you can see re-mortgaging is not cheap and these charges must all be factored in when deciding whether it is financially viable to move.<br /><br />If this tips the balance between a re-mortgage being cheaper or more expensive, then it may be worth shopping around for a company who waives these fees. Some lenders offer dedicated re-mortgaging services with free legal work and valuations but these are often cancelled out by more expensive rates. If costly arrangement fees are a deal breaker though, then do not be afraid to ask about a discount. Lenders are desperate for your custom, and will often be prepared to make compromises just to get you to sign up.<br /><br />Overall, the whole process of shifting provider will probably take you about a month. Once the application forms have been posted, the lender will get to work with a valuation, and if its surveyor is satisfied with the value and condition of your home it will offer you a deal. Your new lender will then liaise with your existing company and you have received a completion statement from your solicitor or new lender, as soon as the process has finished.Nirmala k. pantahttp://www.blogger.com/profile/16195953478983508760noreply@blogger.com2tag:blogger.com,1999:blog-2362007583556423473.post-56628968788079667682007-12-22T01:01:00.000-08:002008-03-02T02:02:02.451-08:00When To Re-mortgageIf you are struggling to keep up with mortgage payments, or just feel you are paying over the odds on your home loan, then re-mortgaging may be the answer. It can give you lower monthly payments and even save you money in the long-term so there is little to be lost from at least exploring the possibility. But once you have decided to re-mortgage, where do you start?<br /><br />The first thing to do is to check the terms and conditions of your existing mortgage. This will tell if you are tied in to your deal and it there are any redemption penalties or early repayment charges. This will give you an idea of how much it will cost to re-mortgage, and whether it will be worth if for you to do so. If you are locked in to your current deal, it becomes a case of working out whether you will save money by switching to a different rate, or whether you are better served by staying put until the penalties expire. Do not forget that a new lender will value your house and then charge an arrangement fee on top which can cost more than £1,000.<br /><br />If you have been with your existing lender for a long time then doing this research is often particularly worthwhile. Long-term loyalty to a lender is not often rewarded with a reduction in rates, and shopping around may well save you money.<br /><br />Of course re-mortgaging is not only about saving money on your existing deal, and can be an economical way of borrowing money. Equity – the value of your home minus the value of outstanding mortgage payments – is your money, and many lenders will let you borrow against it. Releasing equity is often cheaper than taking out a personal loan but it is nevertheless important to be careful.<br /><br />Though borrowing through your mortgage in this way may be cheaper than taking out a loan, the debt you incur will be secured on your home. If you are unable to keep up with these additional payments you could wind up losing your home, so this option needs careful consideration – especially if you are already struggling to meet demands.<br /><br />As with all financial products, there are a million deals out there, all accompanied by a bewildering stream of small print. Before you sign a contract you should be presented with a key facts document which outlines all the mortgage charges and small print in plain English. Always go through it carefully, and never be afraid to ask your broker to explain exactly what all of it means<br /><br />You can also help yourself by avoiding deals with extended redemption penalties. These were being phased out until recently, when a number of lenders reintroduced extended penalties to counter ‘rate tarts’ who chop and change between providers to get a better deal. Getting trapped by these extended deals will prevent you from re-mortgaging again in the future, and as this whole process has shown, there often better deal to be found elsewhere. Extended redemption penalties are often hidden in the small print of contracts so make sure you check carefully. As with anything else you are not sure about - ask.Nirmala k. pantahttp://www.blogger.com/profile/16195953478983508760noreply@blogger.com2tag:blogger.com,1999:blog-2362007583556423473.post-20279285744542807522007-12-09T02:33:00.000-08:002008-02-03T01:58:35.575-08:00No Cost Mortgage - A Real Deal Or Not?With the onset of 2008 we have seen mortgage interest rates begin to fall. When mortgage rates fall, misleading mortgage advertising schemes seem to show up in the media all around us. For example, I recently watched an advertisement on Television for “The Real No Cost Mortgage”. I shudder each time I see or hear advertising about this type of mortgage because it is misleading and deceptive. The sadness in this for me as a 12 year mortgage broker veteran is that this type of advertising is indicative the bad apples that contributed to a great degree to the mortgage industry meltdown in 2007. I am going to say it right off the bat: There Are No “No Cost Mortgages” on the Planet!” Is this clear? All mortgages have costs associated with them. This is the end of the story.<br /><br />Most “no cost mortgage” loan programs are designed the same way: the interest rate of your loan is increased to cover the costs associated with your mortgage. There are a select few mortgages that have very little costs associated with them: these are home equity lines of credit – or HELOCS. Often you can get these little or no cost loans at your local credit union or small community bank. Additionally, these loans typically only allow you borrow up to about 90% of your home’s value. Credit Unions are small enough that they perhaps can offer to pay some of your costs as a courtesy to earn your business. The larger banks simply cannot pay or give you these costs for free or it would set them back a few dollars.<br /><br />With these small second mortgages and HELOCS aside, the rest of the mortgage market is primarily made up of larger first mortgages. As I previously stated, these mortgages have costs associated with them such as: paying a processor to process your loan, the cost for an appraisal, the underwriter, the title insurance policy, your credit report, tax and insurance escrows, and of course the money that your loan officer makes in commission. All of these fees in one form or another get paid, and guess who pays them? That’s right, you do. You will pay these fees one way or another.<br /><br />So what is the catch to this type of advertising? As I previous pointed out, the mortgage company charges you a higher interest rate. If you are paying a higher interest rate, then your monthly payment is higher. So your higher payment month after month pays your closing costs over time. Now, this is not necessarily a bad thing if you know what you are getting into. Where I have a beef with this type of advertising is that it is not telling you the whole truth. You do have closing costs and the mortgage company is charging you a higher interest rate to compensate for those fees – and they do not tell you this in the advertising. They lead you down some fantasy of a no cost mortgage, or a free mortgage, and ultimately charge you a higher interest rate than you would normally get if you paid your costs either with your loan proceeds in a refinance or out of your pocket in a purchase mortgage. The misleading advertising got you to call them.<br /><br />Initially, this loan can be good if you are low on cash. Hey, it is not a bad loan in the short term. Let’s just say that the interest rate that they charge you increases your monthly payment $150 a month for a no cost mortgage. After 30 months, or 2.5 years you have paid $4,500 extra. What if that was the amount of your closing costs when you first got the deal? Well, for the first 30 months you saved money and were better off. However, once you hit month 31, you are now paying more for your mortgage’s closing costs than you would have if you had paid them up front when you got the mortgage.<br /><br />Another thing to be careful about with this type of mortgage is that it is very easy for a mortgage company to charge you more than might have been able to charge you because their profit is made in the interest rate and in the slightly higher interest rates. With this said, it is hard to tell how much a mortgage company makes on your loan given your payment increases slightly over what you could have been paying if you had paid your own closing costs.<br /><br />So, the next time you hear of this kind of mortgage program, make sure you ask about the difference in your monthly payment between paying your own closing costs, or for paying a higher interest rate. If you know you are only going to be in the home for a few years and then you are going to sell the home, then a no closing cost mortgage might good for you. If you are planning on staying longer and you know you are going to refinance in the near future, then this loan might be good for you too. But, if you do not want to refinance in the future, or be forced to have to refinance to get out of a no cost mortgage when it starts costing you money then the no cost mortgage probably is not right for you. Make sure you take a look at all your options. Do not let a slick mortgage person tell you that this loan saves you money – as this is not necessarily the case.Nirmala k. pantahttp://www.blogger.com/profile/16195953478983508760noreply@blogger.com4