How to select the right mortgage lender?

Enter mortgage into any search engine and you will find scores of sites offering you mortgage. On the other hand, enter any bank or financial institution and say that you want a mortgage then you will most likely be hurried into some private office for a meeting with the mortgage advisor or be showered with several leaflets.

However, the point is not finding somebody who will give you a mortgage but it is about finding the right one. Mortgages mean big business. Hence, every financial institution has several different loans for buying any property on offer.  Therefore, you need to shop around before deciding, check out a number of lenders and then make your decision. Comparing can save you quite some money.

The best place to start with is your bank. If you have been with the same bank for quite a while besides having a good record financially then they will be much more confident to loan you more amount of money as mortgage.

The competition amidst lenders is quite fierce these days with the interest rates dropping. Therefore, it is possible that you might find a better deal somewhere else also. Hence, you do not have to feel compelled to use your bank to get your mortgage.

You can make things easier for yourself by using several websites online that help you out with several comparative tables of mortgage offers. Simply type ‘mortgage’ in the search box and you will see several results. One such site is moneysupermarket.com/mortgages. It is good for comparing.

Then there are several comparison sites online. You can use any of them to your benefit. Another good place to look is the finance section of your newspaper. They carry many advertisements besides any news on the recent offers. However, do not get lured by any adverts that simply promise lower rates while not revealing any other information.

Mortgage is not all about rates. Most often, banks advertise displaying the lowest rate that they offer. However, before you can avail that rate you will have to pass several qualifying criteria. Besides that, you should look out for any hidden charges, or clauses.

Always remember to read the fine print, the terms and conditions before you sign up for any deal. People usually get scammed because they do not pay enough attention. Therefore, be careful when you decide.

Then some of the borrowers can also consider ethical investment. For example, Muslim banks are not allowed to charge or pay interest.

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Lower monthly bills means higher monthly savings

The biggest and most effective method of saving money each month is by lowering the bills every month. You will be able to save quite a lot without having to do much about it.

Paying your bill is that one expense that most of us struggle to keep up with. In fact, the many unfortunate ones who think of ignoring the problem will put off paying their bills and then end up in big debts.  You can save a lot of money by saving on your monthly bills. You can save on just about anything from food, clothing, gas to the bigger ones like your insurance or even your mortgage. The trick is to look in the right direction.

First, begin by eliminating all your useless or unnecessary expenses. This will include things like eating out during the weekends, magazine or newspaper subscriptions that you can get at your library or online, cable TV, buying lunch and such other things. These are seemingly small expenses but once you get them out of your budget, you will surprise yourself at the money you save.

Now, I am not saying you have to lead a drab life. You can of course give yourself a reward every now and then, but if you want out of debt fast, then it is only logical to save all that you can.

These are the general savings you can make. In order to find out some more expenses that you might be making without actually knowing it, you can go through your card statements or your chequebook.

Another thing to do would be to call up your card company and inquire if they can lower your rates of interest, even if that is for some short period. Good prices come to those who look for them. This is one moneysaving principle that you should not forget. If you make the effort and look around then you will surely find what you need at a cheaper price. This principle comes in useful especially for those things that you simply cannot eliminate out of your expense list. Shop around and look for good deals on the different things.

In fact, you can save hundreds every month if you can find better deals. You can find good deals on your car insurance, mortgage, internet service, telephone and even those utility bills. You do not need any particular skills for doing this. All you need is some patience and a good eye and you will be able to save enough to come out of your debt soon.

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Frugal living

Frugal living needs certain specific set of skills and a certain perspective of things so that you learn to make the most of every opportunity of saving money. A truly frugal individual learns to make habits of these. Some such habits are given below.

If you want to live frugally, it is important to understand the value of different things. For example, how do you know if the deal on some car is good or not unless you know the actual value of the car? Therefore, make it a habit to learn about prices of different things. Do this especially if you are planning to buy something expensive. It might not take more than some hours to flip through the sale listings of houses in your area. However, knowing that will help you make savings of thousands.

Keep yourself open to learning. Most people have someone they know who seems to get the best deal around on cars, homes, boats, groceries and just about everything. So, ask him or her on how they happen to do it. Learn from others.

An important part of frugal living is to keep looking for options or alternatives. If you have more fun enjoying that delicious pizza at home than eating at some high-end French restaurant, then why not call Pizza Hut and skip that expensive eat-out. It is not so much about sacrificing anything as it is about getting things that you enjoy while paying less for their alternatives.

Do not use that plastic money. It is simply a rule to pay cash if you want to save money. You will have to pay interest if you pay through your credit card. Why pay more when you can have it for less! So, if you want that sofa set then divide its price by the exact number of weeks that you are ready to wait for getting it.

Keep saving that much every week and then purchase it for cash. You will save not only on the interest but also you will get better prices when paying in cash.

Make friends with numbers or in other words, learn to calculate. This is important. Are you really saving on your car when it is actually costing you hundreds in gas every year? Do not simply go for the bigger pack thinking it will be cheaper. Many are profiting because of this very misconception of people. Therefore, do the calculation before buying anything.

Mention what you need in conversations. People might get cheap or free things simply because they happen to talk about it.

These are habits and therefore, you will need to keep doing these for several weeks before they become a part of your lifestyle.

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Do you really want to remortgage?

Remortgaging or refinancing your house is not so uncommon these days and most often, the reasons for doing it also seem to be quite viable too. Refinancing or remortgaging means changing your present mortgage to another one may be even a different provider in order to avail the benefits of better options.

You might want to change your mortgage for a number of reasons, some of them being change of your circumstances, availability of other lower interest loans or better options. All of these and many other reasons seem enough to make a decision to remortgage. However, before you do it, take a look at the following considerations that you need to make.

Consider any charges

Most often, lenders include prepayment penalties in their loan conditions. Therefore, you should first check your loan documents to see if there are such penalties or charges attached to your loan. If they are then you might have to calculate your penalties and the difference in the interest between the two loans. This will help you decide if paying the penalties is a better option.

Consider any fees

Taking out a new mortgage will include fees. You have to do that calculation also. Include the fees of a surveyor for valuation, solicitors’ fees as well as any other extra fees that you might have to pay. Some deals also offer cash so that you can cover any costs or even fee-free deals. You should calculate and decide based upon the difference.

Consider the features

Sometimes, people change loans also because they are more comfortable with the new loan terms compared to their previous one. They might want more flexibility or less flexibility, basically different terms that suit their needs. Therefore, consider all the features along with any extra charges or fees.

Consider the equity of your home

If your house has become more valuable or more expensive over the past years then you might want to remortgage for the simple reason of releasing the equity of your house as cash. Now, there will be some limits as to the amount that you will be able to borrow. That will mainly depend on the property value as well as your income.

If you are retired then there are schemes for equity release for you. You can access cash or get an income regularly based upon the value of your home. In other words, your sell your house to them and yet they give you the right to stay in your house until you live.

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Finances, loans and more

Everybody needs an extra hand at their finances at some point of time in their lives. Loans come in handy at such times of need and it is better to know about them beforehand so that you can understand what decision to make when the time comes.

Loans are mainly of two types, unsecured and secured loans. Based upon your circumstances, you can take the loan. An unsecured loan will require nothing from you in terms of security for the creditor. The creditor will require you to have a sound credit as well as a good reputation. However, because there is nothing besides your name to offer to the creditor as security, you will have to pay higher rates of interest. Besides that, the loan term will be short as well as the loan amount will not be so big.

A secured loan is very different with respect to the unsecured one. The security is for the creditor in this type of a loan. In other words, you will have to offer something valuable as collateral or security to the creditor against which they will offer you the loan. The collateral can be anything from expensive jewellery, your car or even your house. Because you give up something as collateral, the creditor will offer you a lower rate of interest while also giving you a bigger loan amount. The repayment period for your loan will also be longer compared to what you can get on an unsecured loan.

The risk for the creditor is almost nil in such a case and therefore, they will see this as a favorable option to offer. Hence, you will find many attractive offers in this category.

A mortgage is a form of secured loan. Your bank or any other financial institution will lend you money so that you can purchase a house for yourself. Your house is their security. In any case if you are not able to make payments for your mortgage, then the bank has the authority to repossess the house and sell it to make up for its lost payments. If anything is extra then they will return that money to you.

Choosing one out of the two can be a tough selection to make. Most often, people prefer the secured loan owing to the attractive interest rates that they offer. Nevertheless, if you do not have anything that you can offer as collateral or security then it is inevitable that you select an unsecured loan that offers you a good deal. You can go for the unsecured option if you do not want to risk any of your assets.

Both of these options are good and it mainly depends upon your present circumstances and personal preferences what decision you make.

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Debt elimination solution for $10

Everybody wishes that they could pay off their credit cards. However, not many of us have clue as to how we are ever going to be able to do that. So, here is a few ideas for starters so that you can begin the journey of paying off your credit cards, yes, that is possible.

First, stop using or at least reduce your credit card use. If you do not stop using them then you are simply adding to an already outstanding debt. Now, why would you want to add to your debt when you want to eliminate it?

This first threshold is difficult to pass. However, once you do it, you will be on your way to paying off your debts soon. Hence, make an effort and come out of this habit.  You can destroy your credit cards so that you cannot use them even if you wanted to use them. Alternatively, hide them somewhere and do not use them unless an emergency.

Second, begin to make more than minimum payments. Making only minimum payments every month is going to take you a very long time to pay off your credit card. Besides that, you will end up paying a lot more than your original sum.

Therefore, try to make more than the minimum repayments. Low monthly payments seem very attractive to credit card users. They think that it makes the purchase affordable.

However, lower the monthly payment, higher the amount you are actually paying in the end. Therefore, it is better to pay a higher amount every month. This will help you pay off your debt faster while also allowing you not to pay way too much more than your original sum.

Make some adjustments here and there in your monthly expenses and you will see that you have enough to make more than simply the minimum payment every month. You do not need more. You can simply add a mere $10 extra to your payment.

Paying only so much more will help you cut several months in payment as well as help you save hundreds in interest. You can certainly use this money for many other things including saving and also paying off other credit cards.

You do not need to make any big sacrifices or big payments. All it takes is a small addition to your monthly payment. Thus, with a little bit of planning combined with a little effort and you will be on your way to paying off that credit card debt.

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All credit card debts are costly, stay away

The credit card is a wonderful tool of the present day. Swipe it and you can have anything you want in the world. Buy now and pay later on.

Most often, when using their credit card, people think of no more than how big their monthly payment will be. They do not think about the total sum or even the time they will take to repay that debt. If the payment fits into their monthly budget (if they have one!) then the purchase is done.

Credit cards usually charge very high interest rates. As a result, when you make a repayment, most of its portion goes towards paying the interest and not towards the outstanding balance. Therefore, if you calculate the total sum that you will pay then you will probably think of never using a credit card again. For example, for a balance of $2000 and an interest rate of 18%, you will have a monthly instalment of $40. Well, that is good enough. However, if you look at it closely then you will see that you are actually paying almost $30 towards interest and only $10 towards your balance.

So, now you see it, don’t you? Thus, if you simply keep making the minimum payments every month (as you would have planned) then you will take 30 years for coming out of that debt, costing you $7000.

Now, I have not even included the extra charges that you might incur in case you miss or make a late payment some month. The fact is that these companies actually hope that you miss your payment. This way they can earn lots of profit through the extra charges, late fees and additional interest that they will impose upon you. If you use any of the online debt calculators then you will see reality.  Therefore, it is important that you come out of these credit card debts as soon as you can. The longer you stay in the more you are paying in the end. Thus, it is important to come out of these debts.

You can try for some low interest debt consolidation loan that does not involve taking a loan from credit cards. This way you will be able to pay them back. These loan companies might also negotiate and get you a lower rate of interest on your credit cards. While credit cards are definitely convenient, they are certainly to be used with a lot of restraint. If you lose the restraint then you are in for a long long time.

Thus, make every effort you can to relieve yourself of this burden of credit card debt.

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