The residential real estate and housing crises have bottomed out and are starting to rebound. The economy is starting to come around and people are once again, albeit slowly, to buying houses. This means getting a mortgage. If you are in the market and don't want to get caught up in the problems of overextending yourself, or to see if you are getting the best deal you should consider using a Mortgage Calculator.
When considering a mortgage loan, knowing how much money you have and will have and how much you are willing to pay for the loan including the interest and principal is very, very important. To help you decide on projecting how much you will be paying bi-weekly or monthly, depending on the payment term you choose for the entire loan period of your mortgage, various mortgage calculators are available.
These mortgage calculators are categorized into 15 classifications depending on the type of mortgage you want and the terms in interests and principal you want to apply. These classifications for mortgage calculators are the following:
a. Mortgage calculator to determine a borrowers ability to afford a house. This type of calculator can be classified into two. There is a mortgage calculator that determines if a borrower can afford a house and mortgage calculator to help the borrower determine if it is better for him to make a small down payment or no down payment at all or save up first, then make a bigger down payment later on.
b. Mortgage calculator for consolidating non-mortgage debt. There are three types of calculators under these. The first one is used for borrowers who want to consider merging non-mortgage debt in their bought mortgage. The second type of mortgage calculator is for those who want to consider refinancing their mortgage by cash-out or by taking another mortgage. The third kind is for borrowers who already have 2 mortgages for a particular loan and are considering other options to help pay off the 1st mortgage.
c. Mortgage calculator to determine the monthly payments of their mortgage. The types of mortgage calculator to be used will depend on the terms you choose. There is a mortgage calculator for fixed rate mortgages, adjustable rate mortgages without negative amortizations, adjustable rate mortgages with negative amortizations, adjustable rate mortgages with flexible amortizations and mortgage payments with temporary buy downs.
d. Mortgage calculator to determine how much interest borrowers can save should he decide to pay an additional amount for the principal value during payment. The mortgage calculator varies depending on the number of payments a borrower is willing to give. These are extra monthly payments, bi-weekly payments applied monthly, bi-weekly payments applied bi-weekly and extra monthly payments to be paid in a specific period.
e. Mortgage calculator to determine if refinancing a mortgage will reduce its cost. This type of mortgage calculator can be applied to a borrower who wants to refinance a mortgage or 2 mortgages. Other calculators are used to determine if refinancing one mortgage into two can reduce costs while others are used to determine if cash-out refinancing is better than deciding to take on a second mortgage.
f. Mortgage calculator for determining the length of time borrowers have to pay insurance premiums applied to their mortgage.
g. Mortgage calculator to determine amortizations. There are 2 kinds of these. One determines the savings a borrower can have on his tax on the interests and the second mortgage calculator determines the appreciation of property being mortgaged.
h. Mortgage calculator to compare two mortgages. These are different types of calculators that compare the various mortgages that include amortizations and non-amortizations, government and non-government loans, fixed rate and adjustable interests.
i. Mortgage calculator to compute points and fees in a mortgage. The calculator is used to determine the rate of return of ARMs (Adjustable Rate Mortgages) and FRMs (Flexible Rate Mortgages) and the amount that can be saved or lost by using paying points for interest reduction on FRMs.
j. Mortgage calculator for determining amounts to be paid for a mortgage insurance and down payment
k. Mortgage calculator to determine the feasibility of having a mortgage loan in a shorter term.
These mortgage calculators and other various mortgage calculators are available for use in the Internet. Most banks and mortgage companies have interactive pages in their websites where you can do your calculations online. Aside from these, other sites give free downloads of their loan calculators.
Come back next time for more tips. Tricks and techniques to assist you in Living the Champagne Life on a Beer Budget. Remember we're all in this together and I'm pulling for you.
Mahalo.
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Showing posts with label Mortgages. Show all posts
Showing posts with label Mortgages. Show all posts
Monday, October 4, 2010
Tuesday, January 22, 2008
Snydley Whiplash At Your Service!
How to Spot and Avoid Equity Scams
With all the talk these days about Recession and layoffs and inflation, people are looking for ways to make ends meet. Regretfully January is the month when all those Holiday bills come due. Where do people get the money? Well those in dire straits that happen to be homeowners, there is always the old “Home Equity Loan”. Also known as “Second Mortgages” (but Home Equity sounds better than a second mortgage, regretfully there are to many people who think that if you soften the language, the experience is lessened, ask all those who have been “downsized” instead of “laid off” and see if there is any difference).
In fact about 25% of the TV commercials these days are for some sort of Home-Equity Loan (the rest are for beer, cars and a small percentage designated for other stuff). Funny as the banks themselves seem to have overextended themselves on other mortgage loans and now are desperate to trap a whole new set of victims..er customers.
Most lenders on the equity loan marketplace are legitimate lenders; however, a few lenders are taking the less fortunate for a ride. These unscrupulous lenders offer appealing loans, yet fail to tell the borrower about hidden charges or “balloon” charges. In fact this is what the whole “Mortgage Crisis” is about. Hidden charges are often stripped from loans, since the APR is a supposed security to borrower that weeds out hidden fees.
“Equity Stripping” is one of the leading scams on the loan marketplace. The lenders engaging in “equity stripping” will often present to borrowers (too good to be real) deals, leading them to believe that they are saving money. Thus, once the borrower agrees to the contract, the lender will pose new charges, high interest, and other fees that puts weight on the borrower, until he or she breaks and
fails to make payments on the mortgage. The lender then repossesses the home, selling the house for profit while the borrower is standing on the corner, wondering where he will live next.
Thus, the Federal Government has provided information to help borrowers avoid losing. Since equity stripping is becoming a huge industry, the Fed’s advise homeowners to watch out for equity stripping, including paying attention to lenders that are offering loans that reach above your wages.
The feds also advise borrowers to stay alert to “loan flipping,” which is the process of switching loans regularly and requesting larger amounts of cash on each refinance applied. If a lender is pressuring you to sign an agreement, you will need to find another lender, since pressuring borrowers is a surefire tip that the lender is out to take you for a ride. You will also want to consider PMI, which is personal mortgage insurance, which is a requirement; however, few lenders attempt to charge for additional coverage that is not needed. Thus, homeowners, especially the less fortunate,should adhere to advice and read details of any loan offered thoroughly.
It is amazing that these types of scams still exist. I don't know if I should laugh at or show pity for the fools who fall for these in this day and age of unlimited information. I know I feel deep scorn for the criminals who try to pull these scams and they should be in jail and out of business.
Mahalo.
******************************************************************
Need to learn how to get and stay out of debt and live debt free?
Tips and techniques outlined in our ebook “Debt Free Living”.
For more information:
http://www.renspubhouse.com/debtfree/debtfree.html
******************************************************************
With all the talk these days about Recession and layoffs and inflation, people are looking for ways to make ends meet. Regretfully January is the month when all those Holiday bills come due. Where do people get the money? Well those in dire straits that happen to be homeowners, there is always the old “Home Equity Loan”. Also known as “Second Mortgages” (but Home Equity sounds better than a second mortgage, regretfully there are to many people who think that if you soften the language, the experience is lessened, ask all those who have been “downsized” instead of “laid off” and see if there is any difference).
In fact about 25% of the TV commercials these days are for some sort of Home-Equity Loan (the rest are for beer, cars and a small percentage designated for other stuff). Funny as the banks themselves seem to have overextended themselves on other mortgage loans and now are desperate to trap a whole new set of victims..er customers.
Most lenders on the equity loan marketplace are legitimate lenders; however, a few lenders are taking the less fortunate for a ride. These unscrupulous lenders offer appealing loans, yet fail to tell the borrower about hidden charges or “balloon” charges. In fact this is what the whole “Mortgage Crisis” is about. Hidden charges are often stripped from loans, since the APR is a supposed security to borrower that weeds out hidden fees.
“Equity Stripping” is one of the leading scams on the loan marketplace. The lenders engaging in “equity stripping” will often present to borrowers (too good to be real) deals, leading them to believe that they are saving money. Thus, once the borrower agrees to the contract, the lender will pose new charges, high interest, and other fees that puts weight on the borrower, until he or she breaks and
fails to make payments on the mortgage. The lender then repossesses the home, selling the house for profit while the borrower is standing on the corner, wondering where he will live next.
Thus, the Federal Government has provided information to help borrowers avoid losing. Since equity stripping is becoming a huge industry, the Fed’s advise homeowners to watch out for equity stripping, including paying attention to lenders that are offering loans that reach above your wages.
The feds also advise borrowers to stay alert to “loan flipping,” which is the process of switching loans regularly and requesting larger amounts of cash on each refinance applied. If a lender is pressuring you to sign an agreement, you will need to find another lender, since pressuring borrowers is a surefire tip that the lender is out to take you for a ride. You will also want to consider PMI, which is personal mortgage insurance, which is a requirement; however, few lenders attempt to charge for additional coverage that is not needed. Thus, homeowners, especially the less fortunate,should adhere to advice and read details of any loan offered thoroughly.
It is amazing that these types of scams still exist. I don't know if I should laugh at or show pity for the fools who fall for these in this day and age of unlimited information. I know I feel deep scorn for the criminals who try to pull these scams and they should be in jail and out of business.
Mahalo.
******************************************************************
Need to learn how to get and stay out of debt and live debt free?
Tips and techniques outlined in our ebook “Debt Free Living”.
For more information:
http://www.renspubhouse.com/debtfree/debtfree.html
******************************************************************
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