Refinancing your mortgage

When it comes to refinancing your mortgage, it is more than simply considering the interest rates. It is not all about seeking out the lowest rate of interest. In fact, many times, the mortgage terms are reason enough to seek mortgage refinance.

While there are several reasons that might lead you to refinance your mortgage, changing from an adjustable rate to a fixed-rate loan is the most common of all. There is a single difference between these two loans.

An adjustable or variable interest loan is just what the name says. Every month you will have a different payment to make. The amount is designated or decided by certain lenders depending upon the current prime rate of interest. There are some obvious negative aspects of this kind of a loan.

The most inconvenient of all is that the borrower will never know how much exactly they will be paying this month. While payments do not fluctuate a lot, there is always a little variation.

If you happen to miss any payment for whatever reason, you will end up paying ridiculously high interest for the missed payment or late fees. This is true even if you missed it because of an oversight owing to the fact that you were not aware of how much you had actually to pay.

Therefore, stability is one of the prime reasons that people seek to refinance their mortgage.

Now you would say that if people want stability then why go for adjustable or variable interest loans in the first place. The reason is that some years back, the market saw great fluctuations in interest rates.

While rates are quite steady at present, it is always possible that they will go up at any time. That is a reason for seeking mortgage refinance. Even if the rates of interest shoot up, you are at least secure in the knowledge that your loan is secure in a certain specified rate.

On the other hand, if the rates were to drop significantly, you would be stuck paying a high interest when others were paying a lower one. Therefore, it is all up to you to decide if you want to take the risk.

At times, the situation of the borrower does not allow them to go for a fixed-rate loan. However, you can better your position by regularly paying for your present loan. This might allow you to qualify for a loan that offers better terms.

In fact, if you have been “good” and made your payments in time and the lender is convinced that you are completely willing to satisfy the terms and conditions of the better loan then they might offer you that. in this case, mortgage refinance might be a better option.

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More about second mortgages

If you are a homeowner then your house is probably the biggest asset that you have. You realise this no better than when you go out looking to find someone who will offer you a loan.

That is the reason the recent few years have seen people use their homes as a means to get some extra cash at times of dire need. A great way to get your hands on some cash through your house is by getting a second mortgage.

Now, there is nothing difficult or un-understandable about second mortgages. They are what the name says they are. It is a loan that you take in addition to the existing mortgage. The amount of the loan will depend upon your share or equity in your house.

People take second mortgages for a number of reasons. They do it to refurbish their homes, do some home improvement, pay off debts, pay for education and many others. Because this is your second mortgage, it is a given that you have done this before.

However, things are much simpler the second time comparatively. Besides that, the costs of transactions are also significantly lower. However, the rates of interest will be higher on this second one.

A second mortgage will usually lend you a certain fixed amount of money depending upon the home equity you own and you will have to repay the amount over a certain period. If you are taking your mortgage from the same lender as your first then they will combine both your mortgages.

While it sounds quite simple, you do need to remember some things. First, if you do not own a significant share of your house yet, then it is not the right move to take a second mortgage on your house. You should have made payments for the first mortgage for quite some time before you can think about getting a second one.

While you might be able to get yourself second mortgage, you will be charged enormous rates of interest if you do not hold much equity. Besides that, your loan amount will be quite low. In all, it will be more of a waste or loss of money and time. It is better and more worth waiting before you get a second mortgage.

Therefore, you should always keep looking for other options in case you cannot get a decent amount at good enough interest rates against your home equity. Alternatively, you can look at options such as home equity loans as well as home equity lines of credit. Both of these are options where you can borrow against the home equity.

You can decide which one to choose.

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Buying a house for the first time? Look out for cash grants

How often we dream of somebody coming and offering us thousands in cash for free! Well, that is a dream that never converts into reality for most people. Nevertheless, if you are a first time buyer for a house, then things might be different for you. In fact, there are some genuine sources who actually want to give free money in thousands to you.

These genuinely kind people are the federal and state agencies and they offer you a lot of free money in the form of cash grants that will help you purchase your very first home. One of the biggest hindrances or obstacles that first time buyers such as yourself face, is paying the down payments as well as the closing costs. Yes, you can save for it, but that is again a whole other battle that you have to conquer.

Several find this battle to be an impossible one and if you consider the facts, it is true. After you get over with paying your rent, food, utility bills, insurance, gas, car payments, phone bills, clothing and the list goes on, you are left with little to nothing to put aside as a saving.

Now, the state as well as the federal governments are kind enough to recognise and consider this situation. Therefore, they have come up with special programs that have a single purpose of giving money to people who are in need when buying their first house. You might think that no sooner the agencies receive these funds than they give them away completely within a matter of days or even hours. After all, who would not line up for such a free giveaway? Nevertheless, this is not the scenario at all.

Every year, most of the state agencies are not able to exhaust their entire funding. Now, this is great news for any first-time buyer that there is money and it is available to you now.

These programs do not get a lot of advertisement and hence, not many people know about them. That is the reason that the agencies do not fall short of funding. You can learn more about these grants by purchasing this information, contacting your respective state representative or by going online, as you are doing now.

Take action today because thousands of dollars are awaiting you in cash grants. After all, you can use all the help you can for buying your first house.

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Want to save money? Do not try these methods

People will do just about anything in order to save money. Whether it is stuffing in those extra condiments or asking for a ride. It is exciting and it is even better than a raise because the saved twenty quid are entirely yours to keep, whereas you will lose five or more out of the earned twenty.

It is alright and even good to look to save money on stuff. There is nothing wrong in shopping around and looking for cheaper deals. However, some of the ways that you find in magazines or websites are simply outrageous.

Apart from raising some ethical concerns, they are nothing more than time pass entertainment. I would recommend you to read them for the sake of entertainment but would never suggest them to anyone as a means to save money.

Here are a few that simply top the charts.

Here is a mother’s confession. She used to tell her children to take as many free condiments, all the ketchup, mustard, salt and others that they could possibly take whenever they “paid” a visit to any fast food place. Moreover, she also made her kids empty these packets into her regular ketchup and mustard jars. The proud mother says that she hasn’t had to purchase any of these condiments.

There is one more creative suggestion from one penny pincher. He saved money on his car washes this way. No, not by washing it himself (because technically the soap and water would still cost him!) but by doing it using that gas station squeegee; the things people can do!

Well, if that was out of the earth then read this one. A man suggests that if you want an umbrella for free then simply visit the lost and found section of any big public library. Inform them that you have lost your black umbrella.  Almost certainly, they will have several. You can choose the one you like and claim it for yourself. Now, what if they do not have black ones? Well, we might have to wait until this guy suggests a chart colour frequency.

This is an amusing suggestion here about saving on long distance calls. Simply, call when you are sure that they will not be at home. You can simply leave them a message and then they will pay when they call back. However, nothing is said about the chance that you call and they happen to answer. Well, I think then you simply hang up and call back later.

None of these suggestions should be used by anyone. They are nothing more than a mere waste of time. you can read them and use a few laughs but I don’t think they are of no more use than that.

Instead of spending your time and energy after these “techniques,” you would save far if you simply work an extra hour.

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True wealth

Have you ever asked yourself what actually is wealth? Will you be happy if you have thousands of dollars? May be a million? Maybe more than that?

People work their entire lives running after a dream of achieving something, earning more, building more wealth, accumulating as much money as they possibly can. Nevertheless, not one of them would ever say to you that they wish they had spent more of their time working. Some people have a single answer to this question about the meaning of true wealth and that would obviously be simple; money, the more the better.

On the other hand, other people would say to you that true wealth to them is being able to be at peace knowing that they are debt free. Still another might say that if he or she is able to lead the exact lifestyle that they choose to, not considering the cost of it all, then that is true wealth.

To others, true wealth might be being healthy, loved by family and friends. In fact, if you take a survey then you will find that there are several answers to this questions, as varied as the people you ask.

You can live in a villa overlooking the sea, have two BMWs parked in your garage and have millions in your bank account. Yet, you might not be able to enjoy life as someone who might be working in McDonalds and living in a one bedroom furnished apartment.

You can consider true wealth to be whatever perception the individual holds about it. If this were not the case, then there would not be any firefighters, soldiers or police officers. Everyone would be working on the Wall Street trying to earn big money. Then, we would certainly not have any doctors who would travel to war-struck or poor countries simply to make a difference. They could easily stay close to home and make a comfortable living with a successful practice.

Where would we find any volunteers for any job if nobody would be ready to work without money? Who would help the infirm, destitute or sick? Who would come running to help should a disaster strike?

We would not even have the money to run any charities if we would not have millions of people donating billions to them. Thus, if you thought that money was the only true wealth then you need to relax and change your perspective on this one because there is certainly a lot more to true wealth besides money.

Therefore, if you think that you are poor because you are in debt then think again. I would consider that being in debt only means that you have transferred your money to some creditors.
It really has little to do with your true wealth.

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Simplicity is the first rule of budgeting

People are inherently rebellious, it is in our nature and we cannot deny it. However, all of us know that rules are in place for a reason and rules give us safety and bring order in our lives. While we might not like them, they are there to help us and make our lives easier.

The same is true for developing a budget. In order to have financial success, you need order in the form of a budget. Now, the first and the most basic rule of budgeting is to keep it simple. If you do not like rules then do not worry because there are no specific “rules” for budgeting. People tend to create a big hype around budgeting and that you need to stick to specific rules if you want to succeed.  Nevertheless, the thing is that there is only one rule that you need to remember when formulating your budget and that is to keep it all simple.

You need not be an accountant or even have any degree whatsoever in any accountancy subjects. All you need is a paper, a pen and a calculator.

Do not complicate things when they are much better left simple. There is no need to use fancy graphs or linked spreadsheets or any complicated tables. No, you will not need any hi-tech software to create your budget. You will not even have to take any extra degree or classes to do it.

As I said earlier, if you have a blank sheet of paper or a spreadsheet then you have all you need. Enlist all the expenses that you make every month. Yes, this is what it is. It is preparing a list and nothing more than that. Now you tell me if this is difficult.

If you are one of those people who cannot seem to remember what you spent your money on then you can do this. Carry a paper and pencil everywhere you go. Note every expense you make. By the time the week ends, you are sure to know your expenses. Keeping in mind the notes that you took during the week, prepare your monthly budget. You can make things even simpler by doing budgets for each pay check. Alternatively, you can assign a column to every pay check.

When you are done, plan your expenses surrounding your pay check. Simply decide what you want to spend money on, this week or when you get your pay check this time. If you can keep a track of where you are spending, you will be able to plan how you want to spend it.

The planning will keep you from making any unnecessary or impulsive purchases that you will regret later on. Stick to your budget and you will do well.

Simplicity is of prime importance when you plan your budget. Without it, you will be lost in complicated terms and columns and you will end up in a mess. Therefore, plan a budget and make it simple.

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Information on reverse mortgage for seniors

People have started understanding reverse mortgage and its popularity is growing in America. If you do not know about reverse mortgage then it is a speciality mortgage. It helps the homeowner to use his or her home equity to get cash. It helps the older generation to become financially sound and gives them security so that they can be prepared for any emergency medical expenses besides several other costs.

The reverse mortgage is by HUD and in order to be eligible you have to be over 62 years of age and you should have paid off your mortgage or should have only a small amount remaining to pay back.

Homeowners can receive payment as they prefer. They can go for a lump sum payment or they can opt for a monthly payment for a specified period or for as long as they stay in that house. You can change this mortgage depending upon your circumstances.

This mortgage does not require for the seniors to make any repayments. The lenders will recover their principal amount as well as their interest when they sell the house. If there is any extra amount remaining then they will pay it to the homeowner or their survivor.

If the amount that they lender get after selling the house falls short of paying the borrowed amount, then the difference is paid by the HUD. The Federal Housing Administrations collects insurance premium from their borrowers so that they can provide for this coverage.

Now the amount that you can get as reverse mortgage will usually depend upon your age, rate of interest as well as the value of your property. This mortgage type will lend you more if you are older. Besides that, you will not need to produce any proof of income or present any sort of asset. Apart from that, you do not need to have a house of a certain value to be eligible for this type of mortgage.

You should be prepared to give about two per cent of your property’s value as an up-front fee. Apart from that, you will also have to pay one and half per cent of your balance amount of loan annually. However, the lender generally pays this amount and this is included in the total amount that you borrow as a homeowner.

This is an excellent option for seniors. They have worked their entire lives to be able to own their homes and therefore, the home is the one thing they have that will provide for their financial security when they need it the most.

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