January 9, 2013
For some reason, most of the marketing behind home ownership leads you to believe that you should be paying off your home for the next 20-30 years. People even have ‘mortgage-burning parties’, where they (symbolically or actually) burn their mortgage documents at the same time that they retire.
If it sounds crazy to take over 20 years to pay for something, don’t worry, it’s absolutely possible to pay off your home faster.
Interest Rates Are Important
A lot of people assume if you’ve been dealing with a bank for most of your life that they will be the best option for getting your mortgage. This is not always the case and it’s imperative that you shop around. Even a 0.05% difference on the interest rate will mean thousands of dollars over the life of your mortgage.
Websites like http://mortgagerates.ca are fantastic for comparing lenders (even those you’ve never heard of) and making sure you’re getting the best rate. Don’t be afraid to negotiate with your bank. If you prefer to keep your accounts in the same place, at least explain to your rep at the bank that you have better options and ask if they can match them.
Your Mortgage – Pre-payment Options
Interest rates aren’t the only consideration for your mortgage. If you want to pay this off aggressively you’re going to need some pre-payment options. There are typically two ways you can pay down your home faster.
- Monthly payment options – most mortgage lenders allow you to modify the amount you’re paying every month. This is usually listed as a percentage of your payment. For example, if a lender allows you to bump up your payment by 25% and your current payment is $1,000 a month, you’ll be allowed to increase that to $1,250. You can get mortgages that allow up to a full 100% increase.
- Lump-sum payments – You should also have the option to contribute lump-sum payments whenever you want. These are great for things like tax refunds, bonus cheques, and other found money. These are typically offered again as a percentage, this time of your total mortgage amount, and range from 10% to 25%. So if you owe $300,000 on your mortgage, you’d be able to contribute up to $75,000 a year (at 25%) on top of your regular payments.
Finding The Money
You might be laughing at the idea of having an EXTRA $75,000 a year kicking around, and yes, it’s probably not going to be that much. What it does is give you options.
If you really decide to get serious about paying off your home, it’s time to prioritize. Remember that every dollar you put towards it now will save you all of that compounding interest in the future, so the time to make the most sacrifices is right now.
Make cuts wherever you can. Use an online mortgage payment calculator to calculate how much every extra payment will save you in the long run – this will keep you motivated.
, home loans
, personal finance
December 22, 2012
There is help for our veterans who are looking to refinance their mortgage loans. With the help of a VA home loan when using a VA Streamline loan the refinancing process should be very easy.
What Is The VA Streamline Loan
The VA Streamline loan was created in 1944. The purpose of this loan was to give aid to the former military personnel when purchasing their homes and helping maintain their homes. This is a loan that was guaranteed by the Veteran’s Administration. With this type of a loan the veterans would receive an interest rate that was considerably lower than that of a typical financial lender.
Even as a veteran there are those that are being denied for the VA Streamline Loan. They are being denied due to a not so good credit history or because the home that they own has lost it’s original value. Believe it or not even though the banks are denying you there is still help and options available to you.
Guidelines To A VA Streamline Loan
Even though the lenders claim that they know all of the mortgage rules and policies for every type of a loan out there the personal loans for bad credit lenders who are unfortunately denying the VA Streamline loans are doing so because they do not know the policies of the lending for the Veteran’s Administration. They will deny the loan due to them not wanting to take the risk. This is not correct. It is important that as a veteran you know the guidelines and rules as well as the lender.
The first and major thing to remember when applying for one of these loans is that there is no credit score required. Many lenders will demand that they run your credit score. If you are a person with a not so good credit history it might be a great idea to walk away from that lender and find one who will follow the correct policies of the Veteran’s Administration.
Another guideline that should be followed is that there is no appraisal required. This is a very important guideline to remember because in today’s housing market there are many people who have upside down mortgages. This is because the values of their homes have crashed and the amount of their mortgage is more than what their house is worth. As a Veteran you have the option of refinancing your home under the VA Streamline loan without having to worry about how much is owed on your current mortgage loans with no credit check.
The last guideline is that manufactured homes are eligible. If you are a veteran with a current VA mortgage loan you will be eligible for this loan whether you have a manufactured home or a home that the frame has been built.
As a Veteran you have many advantages when it comes to certain things. A home loan and a refinance of your home loan is one of these advantages. You should take advantage of all of the benefits that you receive. After all you have served the country and you deserve what it gives back to you.
, financial planning
September 1, 2012
There are numerous examples of people adding to their home or changing rooms completely; it’s a great way to make your home better and saves the hassle of moving house just to get a new conservatory or a bigger kitchen.
The only problem with that is that it can be terribly expensive and rising costs can drain your bank account. Although there are no estate agent fees or solicitor intervention, you do have to worry about how it’s going to be built, the equipment that will be required and dealing with your local authority if you need planning permission.
There are ways, however, that would enable you to save money on such necessities.
Doing the work yourself (or as much as possible!)
Many people who plan to build on their own home are trained in the relative skills that will enable them to do most of the work. The costs of hiring labour can be vast and if they go over the proposed schedule, then you’ll have to pay out more money.
You might find that some businesses will purposely provide a longer schedule to make more money, so it can be worthwhile to shop around to see who can do the work in a decent amount of time and for a reasonable price if you can’t do the work yourself.
If you are able to do some work yourself, you may still need to outsource someone to do something like loler testing and inspection to make sure you can go ahead with your build and get your certification for safety.
Hire, don’t buy equipment
If you are able to take on the work yourself, you’ll obviously need to get the correct equipment, whether it be lifting equipment, handling equipment or drills and mortar. However, make sure that you hire and not buy, because you’ll only use this equipment once and so it’ll be fie to hire lifting equipment from someone like Lifting Gear UK.
The expense of owning such equipment is very high and remember you’ll have to keep in the best of shape so that means maintaining it and making sure it’s always working safely.
Complete the project all in one go
Cost often spiral when projects get dragged out further and further because your budget usually only applies to the planned schedule. The longer the project lasts, the more labour costs will be required and most likely equipment and material costs too.
, Budget Planning
, financial planning
, money savings
, personal finance
May 2, 2012
Here at Sell or Yell we can help. We offer a fast cash buy service that allows you to sell your property quickly and in your own specific time scale. There are many reasons why you might need to sell your house quickly. You might need to release equity in your house to buy another property or pay off debts. Perhaps you are facing financial difficulties and need cash quickly to avoid house repossession and eviction. Whatever your circumstances we are dedicated to offering you a solution.
The current economic climate means that an increasing number of people are struggling to keep up with mortgage repayments and are facing property repossession. If this is you don’t panic, we are here to help. At Sell or Yell we specialize in quick cash property sales. We are committed to working within your personal time frame and providing you with a solution. If you are being threatened with eviction or repossession we will help you to find alternative accommodation giving you peace of mind that you will have somewhere to live at this difficult and frightening time. House repossession is something that is becoming a reality for more and more of us and our professional team at Sell or Yell are experienced in dealing with clients facing repossession and understand the urgency required.
At Sell or Yell our quick house sale service means you avoid all of the associated delays and volatility associated with the current housing market. House sales can be arranged in a matter of days and all of our services are tailored towards your own individual needs including our Sell with Rent Options scheme which involves finding you alternative accommodation after your house sale.
, real estate
April 28, 2012
Investing in real estate has long been a way to generate wealth and passive income for investors. If you are thinking about investing in rental property, you may want to create positive cash flow from the beginning. However, another strategy, known as negative gearing, could actually work out better for you. What is negative gearing and how can it help you in your property investment pursuits?
Negative gearing is a process in which you borrow money to buy an investment property. Once you borrow the money and purchase a property, the cost of the interest on the loan and other related fees then exceed what you make from the rental income on the property. When you realize a loss on an investment property, you can then use that loss to offset other money that you have made from other endeavors. This gives you a realized loss that you can take advantage of when it comes time to file your taxes.
The advantage of using negative gearing is that it reduces your taxable income for the year. If you make good money from some other source, you may have to pay a lot of money in taxes. By using negative gearing, you can reduce your taxable income, and reduce your taxes for the year. This makes it a lot easier to handle your tax bill than it would be otherwise.
Another benefit of using this type of system is that the government and the rental income from the property essentially helps pay for the property. With the combination of the rent and the tax savings that you receive from this type of investment, you get the equity from the investment paid down. After a certain amount of time, the equity built up so that you can access it through a loan or by selling the property. If you hold onto the property for the long-term, the property could eventually be paid off and then you’re left with a tangible asset that you can use at any point. You could then keep renting the property out and collecting passive income or you could sell it to generate a lump sum of money. Regardless of what you do, you’ll be in a good position financially because of the tax savings and rent that you have been receiving all this time.
Although negative gearing can be an advantageous way to invest in property, you have to be careful when getting involved. You have to make sure that the numbers are just right to make it work. If you borrow too much money to buy a property and the mortgage payment is too high, your strategy may be difficult to keep up with.
Tags: Finance Tips
, Investment Advice
, Investment Property
, personal finance