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Debt Consolidation Mortgage Loan - Pros And Cons
Debt consolidation mortgage loans can help you lower your
interest rates and monthly payments. With reduced rates, you can
also pay off your debt sooner. However, reducing your equity
could subject you to private mortgage rates. You may also end...
Finding a Mortgage Refinance Advisor
If you are looking to refinance your home for a lower rate, or you are interested in a refinance with cash out to do some home repairs, buy a new car, etc., you may want to consider finding a mortgage refinance advisor.
There are actually two...
Lower Mortgage Payments can Increase Wealth
Creating and maintaining wealth is a very difficult task. Ask any millionaire!!! The delicate balance of living a dream lifestyle and holding expenses tight creates this difficulty. As a financial advisor, I have assisted people accumulate monies to...
Mortgages - How Much Are You Really Borrowing?
How much are you paying back?
When considering a mortgage do you consider all of the right questions, for example do you consider which bank is best because of their reputation or do you instead look solely at the interest rate tables, do you look...
Wealth Creation and Mortgage Planning - Two Great Tastes that Taste Great Together
What if I were to tell you that almost everything you have been told about what to do with your home has been absolutely wrong and that one of the worst ways to build wealth is through your home? And what if I further went on to show you that...
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Smart Mortgage Strategy for Average Joe
Buying a home is probably the biggest financial decision most
people will make in their lifetime. The percentage of down
payment you put in will make a huge difference for the health of
your personal finances for years to come. What percentage of
down payment you should choose is largely dependent on the
current mortgage rate.
20% Down Payment
It's common for a lender to require 20% down payment from
homeowners for mortgage financing. The initial payment does look
hefty, but the homeowners won't be required to purchase mortgage
insurance at least. If the mortgage rate is high, large
percentage of initial down payment will reduce the total cost of
home ownership over a course of 15 or 30 years of your mortgage
payment unless the rate is so high that you know for sure you
will refinance or remortgage in a few years.
0% Down Payment or 100% Mortgages
When economy is slow and the mortgage rate is low, it is
possible to obtain 100% mortgages that cover the full value of a
property, without the requirement of a down payment. 100% mortgages are designed particularly for first
time homeowners who do not have a deposit available. If the real
estate market falls in coming years, you may end up owing more
money than your house is worth. In a rising
property market, the
value of your property make quickly exceed the amount of
mortgage you own.
Cash Back Mortgages
In a slow real estate market, some lenders are even pushing for
A cash back mortgage for borrowers with good credit ratings and
the backend of a reasonable personal wealth. Borrowers can
borrow the amount of money that is more than the value of the
property they'll purchase. This is even more common for mortgage
refinance when the mortgage you own is only a small amount of
the value of the property.
Some homeowners may put the extra cash injection into home
improvement, while other actually put the cash in low-risk
investment (such as S & P 500 index fund) and hope to make some
money from the investment as the economy and stock market and
recover.
It's easy and handy for anyone to compare the pros and cons of
each option with a mortgage calculator. It's strongly
recommended to consult a experienced personal financial planners
especially if you are thinking of more risky 100% mortgages or
cash back mortgages.
About the author:
Natalie Aranda is a freelance writer. She writes about business,
travel and family. She contributes to 1st Direction
Mortgages.
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