Maintain your old Siemens Hipath system

How to Secure the Best Mortgage Deal and Save Yourself Thousands in Interest

When you consider that the average home owner will pay out far more in interest over the lifetime of their mortgage than their home actually cost in the first place, you can see why working to secure yourself the best possible mortgage deal now could save you tens of thousands of dollars in interest over the 25 ? 30 year lifetime of your home loan.

For the majority of us our house is the single most important and expensive purchase we ever make! Because this is the case we invest a lot of time and effort into finding the perfect property in the most ideal location, however few of us invest the time and effort we should into researching and securing the best possible finance method for purchasing our home.

This article will give you a few pointers to make the search for the most ideal and personally suitable mortgage that much simpler; and bear in mind that your search for the best loans and repayment vehicles currently available can be carried out on the internet, making the whole process that much more convenient and time efficient for you.

Step One - Firstly you need to understand the different types of mortgage that are available - they come in many flavours! By taking the time to understand the way the different types of loan work, you can see which type suits you and your personal circumstances best ? after all it most certainly isn't a case of one mortgage type suiting all people!

At their most simple level most mortgages fall into one of the following categories. Different lenders will have their own variations on the theme, but if you understand the basics of the following loan categories you will be armed with sufficient data to move on to step two.

Fixed Rate Mortgages ? a borrower pays a fixed interest rate for a fixed period of time and usually the longer the fixed period the higher the fixed rate. This type of mortgage protects the borrower from interest rate fluctuations and payment uncertainties but it does mean that when the loan term begins the borrower is usually paying above the best interest rates available. In the US and most other countries apart from the UK you can have a fixed rate for the duration of your mortgage. In the UK it is usual to only fix for a maximum of 10 years.

Adjustable or Variable Rate ? the rate of interest payable by a borrower can vary. Lenders usually keep their interest rate fluctuations in line with the Bank of England's base rate in the UK and the rate set by the Federal Reserve Board in the US. Certain lenders offer discounted variable rates for home loans for a fixed period to attract borrowers. The attraction of this type of mortgage is that initial rates are usually far lower than offered under the terms of a fixed rate mortgage?however over a period of time the interest rates can rise considerably and make borrowing far more expensive. Furthermore the fluctuations make it difficult for a borrower to know how much he will be paying from one month or one year to the next.

To offset the risk associated with an adjustable rate mortgage some lenders offer 'capping' options. Sometimes they fix the maximum level to which the interest rate you are subject to can rise for a given period of time, sometimes they fix the cap per year and sometimes for the lifetime of the mortgage.

Balloon Mortgages ? popular in the US with homeowners who aren't planning to stay in their new home for life, these mortgages are usually repayable in 5 ? 7 years. They offer the advantage of lower interest rates but the disadvantage that if you are still in the home after the 5 or 7 year period you have to secure a new loan to pay off the balloon mortgage!

Jumbo Mortgages or 'Non-Conforming' Mortgages ? the UK doesn't have an equivalent of this US loan type. Basically in the US there is a legislated purchase limit set each year by the Federal National Mortgage Association (nicknamed Fannie Mae) and the Federal Home Loan Mortgage Corporation (nicknamed Freddie Mac), a jumbo loan allows the borrower to borrow over and above this amount but for the privilege they will incur higher interest rates.

Step Two ? having identified which type of mortgage probably suits you best you need to consider repayment methods and you basically have two to choose from: -

Interest Only ? your monthly repayments to your lender cover only the interest on the loan meaning that nothing you pay back goes towards repaying the borrowed amount; it is up to you to establish some form of savings vehicle over the lifetime of the loan period into which you pay sufficient sums to ensure you have enough capital at the end of the loan period to pay back the amount borrowed.

Capital & Interest ? your monthly repayments are divided into an interest payment and a capital repayment. In the early years of the loan period most of the monthly payment is swallowed up in interest but over time the balance swaps and you start to pay off more of the capital sum borrowed.

Step Three ? Now you know which mortgage type and which repayment method you favour it's time to find the right lender! There are so many lenders offering such a variety of loans that at first it can seem a daunting prospect trying to determine which lender most suits you! However, depending on the strength of your credit record, your current employment position, how much you would like to borrow and how much of a down payment you are in a position to make, some lenders will rule themselves out and some will seem more attractive to you.

It is possible to approach an independent mortgage broker or independent financial adviser to assist you with your search. Such an individual will examine the product market place and apply his expertise to locating the best lender to suit his client's requirements. Most of these brokers are paid a commission by the lender when you take out your mortgage; however some also charge you a fee. Make sure you find out from the broker whether you will be charged as this is potentially an additional fee you could well do without!

Finally ? there are a lot of informative sites and tools like mortgage calculators available on the internet to provide you with, for example, an idea of how much you can borrow and the most efficient borrowing and repayment method to suit you and also to give you an insight into the lenders themselves.

By making use of all the tools and resources available to you and by doing your home work you will be informed and this will strengthen your loan buying position.

Rhiannon Williamson is the publisher of http://www.shelteroffshore.com/ - the online resource for offshore and international real estate investors.

If you're thinking of buying real estate abroad for investment or retirement, or you're searching for a dream holiday home in the sun visit http://www.shelteroffshore.com/index.php/p roperty/ for a comprehensive range of free guides and articles to help you on your way, or to contact an international mortgage broker.

In The News:

Fighting in key Yemen city dies down after ceasefire
Tue, 18 Dec 2018 07:50:00 +0000
Yemen's key port city of Hodeida was calm on Tuesday, hours after a ceasefire came into effect between government-allied forces and the country's rebels.

Brit arrested over cannabis oil in Bali could face death penalty
Mon, 17 Dec 2018 21:56:00 +0000
A British man who could face the death penalty after he was arrested in Bali for allegedly smuggling cannabis oil has admitted he has been "very stupid".

'You sold your country out': Judge tells Trump's former adviser
Tue, 18 Dec 2018 15:58:00 +0000
A judge has told Donald Trump's former national security adviser Michael Flynn that "you sold your country out" as he delayed his sentencing for lying to the FBI.

Trump wishes Flynn 'good luck' ahead of sentencing
Tue, 18 Dec 2018 14:26:00 +0000
Donald Trump has wished his former national security adviser Michael Flynn "good luck" in court as he awaits sentencing for lying to the FBI.

BA to resume Pakistan flights 10 years after hotel bombing
Tue, 18 Dec 2018 16:19:00 +0000
British Airways is to resume flights to Pakistan more than 10 years after a deadly terror attack at the Marriott Hotel in the capital Islamabad.



tikatoshop.it

Erfahrungen mit Pallhuber Wein
Agen Bola SBOBET Terpercaya

Travel in comfort and at your leisure with CT Airlink Limousine & Car Service for top quality private transportation and exceptional customer service. We operate Sedans, SUVs & Vans for CT Car Services to covering all Connecticut airports including Car Service from CT to Newark Airport , Mohegan Casino Uncasville CT, Foxwoods Casino Mashantucket CT, Manhattan Cruise Terminal NYC, Brooklyn Cruise Terminal NYC and Bayonne Cruise Terminal NJ. CT Airlink hire licensed and friendly chauffeurs who have in-depth knowledge of the Areas.

Is an ARM Right For You?

Let's start by taking a look at 7 key elements... Read More

Home Mortgages: Think Before You Borrow

In today's overheated housing market, lenders are making it easier... Read More

Home Equity Line of Credit or Second Mortgage Loan Online - Things To Do With Your Homes Equity

If you are wanting to get a home equity loan,... Read More

High Risk Mortgage Lenders - Using a Sub Prime Lender Online

Sub prime lenders handle high risk mortgage loans that traditional... Read More

Home Mortgage Refinancing - Things to Consider When Looking to Get Cash Out on a Refinance

When you refinance your home mortgage, lenders often tempt you... Read More

Getting The Best Rates On Mortgages And Loans

With an impending up-grade to the family due in a... Read More

Home Mortgages: Should You Apply Now?

If you're thinking about applying for a new mortgage or... Read More

Keep Your Eye Focused on Treasury Bond Rates To Adjust Your Current Mortgage Rates

Mortgage rates typically are based off the current rates of... Read More

Basic Tips for First Time Home Buyers

The first time you purchase a home is an exciting... Read More

Home Equity Loans Company ? 7 Key Questions to Help You Choose One

Choosing the right home equity loan can be tricky; you... Read More

Mortgage-Refinance Treachery: Avoid Mortgage Bankers and Brokers Biggest Trick -- The Sales Pitch

What the average homeowner or home buyer fails to realize... Read More

Poor Credit? Get a Sub-Prime Mortgage Now, and Refinance to a Conventional Mortgage Later

There are great mortgage loans for people with poor credit,... Read More

A Guide to Direct Homeowner Loans

Are you considering applying for direct homeowner loans? Perhaps you're... Read More

Kingsland Saint Marys & Kings Bay Real Estate - VA Mortgage Information For Home Buyers

A VA guaranteed mortgage is the usually the best way... Read More

Best Buy to Let Mortgages

Are you looking for the best buy to let mortgages... Read More

Student Home Purchase Plan

Tuition costs are climbing, housing costs are climbing, it seems... Read More

Essence of Self Certified Mortgages

Your search for a mortgage isn't leading results.Check for any... Read More

Self Employed Mortgage Loan ? Getting a Mortgage When You?re Self Employed

Being self employed has many benefits. When you are self-employed,... Read More

A Qualified Mortgage Consultant Can Help Boost Credit Scores

Consumers interested in purchasing or refinancing a home will pay... Read More

Ten Things a Mortgage Processor Must Know to be Effective

From time to time, we hear a story about a... Read More

Home Equity Loan ? Still a Better Idea Than a 401(K) Loan

Anyone who borrows money is always looking for the cheapest... Read More

First Time Buyers Fail To Shop Around

Almost two thirds of first time buyers accept the first... Read More

Online Mortgage in UK - Introducing the Best Mortgage Plan Across UK

Add the term 'online' and it will open for you... Read More

How to Get Your Home Mortgage Loan

If you are thinking of purchasing a new home soon... Read More

Online Mortgage Brokers - What You Might Not Know About Home Loans & The Internet

You may think that applying online for a mortgage is... Read More