Honest Realestate Agent

Posts Tagged ‘mortgage rates’

Do you realise the best investment ideas can usually be the simplest? One of the secrets though is knowing where to go for the lowest risk but with the best return.

Try and disregard the current property downturn as historically house prices do increase quite dramatically over the years. You can still make a decent low risk investment out of property.

A good property investment relies on the old saying location, location, location. Some things never change and certainly location is the number one factor to consider.

Property prices usually double every ten years in the UK. You can make the most of your property investment knowing this. Property investments are a great example of the simplest ideas being great investment ideas.

Keeping figures simple and rounded well do a quick example. Buy a house for 150k and 10 years later it should be worth double that, 300k.

On that example you should regularly shop around for the best deals on mortgage repayments as we could be talking about a lot of cash. It’s always a great idea to have some cash at hand in case another great investment idea comes along.

**If you want to learn how to reduce your mortgage by years you can use our mortgage overpayment calculator and be shocked at the result**

Back to what we were on about before.

Chopping and changing lenders can be a hassle, but the ultimate return on your investment can be much more if you do a little work. The mortgage is a key factor in any property investment idea.

So many new investors are caught out by the peaks and troughs of the property market. They usually buy at a peak then when things turn sour, they rush to get rid. A sure fire way of losing money equating to a poor investment idea.

Going back to the phrase, simple is usually best, you need a system to work from to maximise any chance of great returns. If property is to be your medium then the formula has to be, wait for a trough, establish an affordable good location, obtain a good mortgage, get a good management team in to secure regular premium rentals.

The best ideas are usually the simplest, with the wheel being one of the simplest and best. Don’t over complicate matters in your search for a good investment idea, after all simple is best. You can click this link for one of the best investment ideas.

Many people will never realise the best investment ideas are usually the simple ones. You have to look for the greatest return but with a very low risk factor.

Property prices do increase a lot over the years, which is hard to believe as we suffer a terrible downturn. You can still make a decent low risk investment out of property.

A good property investment relies on the old saying location, location, location. If you are looking at a property investment then location is number one on your list.

Here in the UK house prices double every 10 years historically so you can make the most of your money by getting into the property market. Property is a prime example of a simple idea being arguably the best investment idea.

Keeping figures simple and rounded well do a quick example. Invest in a house for 150k and keep it for ten years. It should be now worth circa 300k.

On that example you should regularly shop around for the best deals on mortgage repayments as we could be talking about a lot of cash. It’s always a great idea to have some cash at hand in case another great investment idea comes along.

**Not so much a great investment idea but using our mortgage overpayment calculator you can find out how to knock years off your mortgage**

Back to the article proper.

Chopping and changing lenders can be a hassle, but the ultimate return on your investment can be much more if you do a little work. Getting and maintaining the best deal on your property investment ideas is key to maximising the return.

People new to property investment often get their fingers burned by the ups and downs of the property market. They get in late and buy at a peak. Then panic and try to sell in a trough. A sure fire way of losing money equating to a poor investment idea.

If simple is best then you need a simple formula to turn an investment idea into cold hard cash. If property is to be your medium then the formula has to be, wait for a trough, establish an affordable good location, obtain a good mortgage, get a good management team in to secure regular premium rentals.

For centuries it has been proven that the best ideas are the simplest with the wheel being a prime example. Don’t get caught up in a myriad of detail while searching for investment ideas. Keep it simple! You can click this link for one of the best investment ideas.

Well take a look at fixed rate mortgages and how they can be good for you.
We’ll also take a peek at how much you could save with an overpayment calculator.
You get security from the fixed rate mortgage & you may get a nice surprise from the overpayment calculator.

A fixed rate mortgage is a special type of mortgage where you have a fixed interest period.
You get a fixed interest period for several years.
Because the interest rate is fixed, so are your monthly payments.

Do fixed rate mortgages have any plus points?
You benefit by not having the yo-yo effect on your monthly payments. They stay the same every month.
You can plan your monthly spending easier knowing your mortgage won’t go up unexpectedly.

No matter what the average interest rate is, your rate will stay the same.
In the not too distant past there have been some real scary rate rises.
People on variable rate mortgages are much more likely to be affected by rapid rises in interest rates.

There is a situation when maybe you should think twice about a fixed rate mortgage.
If you suddenly have an extra family member and need more space. Or you are simply considering moving home soon.
These types of situations could invoke a nasty redemption penalty on your fixed rate mortgage.

Fixed rate mortgages usually come with charges called redemption penalties.
At a time when you least need it, you could get hit with a redemption penalty.
If a charge like this will hurt you then you must think very carefully before taking a fixed rate mortgage.

One thing to consider while having the mortgage is to pay a bit extra every month if you can afford it.
You don’t have to make the same payment month after month for 25 years.
Lenders prefer you to make payments like this but they never inform you that you could pay extra if you wish.

If you do pay extra each month, are there any benefits to this?
You can shave several years off your mortgage term by paying slightly more each month.
You also save a lot of money in the process, sometimes a staggering amount.

How do you use a mortgage overpayment calculator?
It uses figures from your mortgage. Amount, interest rate, length of term etc.
You can enter a figure that you may think about paying as an extra payment each month.

You get a resulting figure out of the calculator in years you can shave off.
You get to see how much money you could possibly save.
If you play around with the overpayment figure you can see that the more you overpay the more you save, in cash and years.

You may be amazed by how much you could save.
If we take a mortgage of 100,000 borrowed over 25 years and assume you get an average 5% interest rate.
Making an overpayment of 50 every month will save you 12,000 and knock over 3 years off.

The last example was an overpayment of 50 every month, but what happens if you pay 100 extra.
Using the same figures in the mortgage but substituting 100 extra for the previous 50 extra.
You get to shave over 6 years off the length and over 20 grand saved. That’s pretty good.

One more advantage is that the years you save are payment free, nothing at all to pay.
By paying a little extra now, you could easily be mortgage free well before you ever expected.
You will never hear this from your lender though; it’s simply not in their interests to tell you to pay off early.

In the example where we paid an extra 100 every month and shortened the mortgage by six years.
No payments for 6 years means another 40 thousand saved in monthly payments.
This is money you can spend or save as it’s not going to your lender every month.

In conclusion we listed a few benefits of a fixed rate mortgage.
Regular payments and a good night sleep.
We also had a look at the savings to be made by paying a bit extra every month. It all adds up.

Let’s find out just what a fixed rate mortgage is, and how it may benefit you.
We’ll then take a look at an overpayment calculator for your mortgage.
From definite security with the fixed rate mortgage to potential cash saved with the overpayment calculator.

Fixed rate mortgages are one of a few different types of mortgage available.
You get a fixed interest period for several years.
If the interest rate remains static, so do your monthly payments.

What are the fixed rate mortgage good points?
A fixed rate of interest means a fixed monthly mortgage payment.
You can plan your monthly spending easier knowing your mortgage won’t go up unexpectedly.

Your payment is locked so it really doesn’t matter what the general rates are doing.
In the not too distant past there have been some real scary rate rises.
A rapid rise over a year or so could really see payments rise for those on standard variable mortgages.

There are a few situations when a fixed rate mortgage may be a bad decision.
The arrival of a new child could mean you need a bigger home and need to move. These are reasons to avoid fixed rate mortgages.
In situations like these you may need to redeem the mortgage and pay a hefty redemption penalty on the fixed rate mortgage.

Nearly all fixed rate mortgages have a redemption penalty attached.
When you can least afford it you could have a charge slapped on you.
There is never a good time to be hit with extra charges so think carefully before taking the fixed rate mortgage.

During the term of your mortgage it’s worth considering paying a bit extra each month if your budget will stretch.
It’s not set in stone that you have to pay the same minimum amount every month.
The lenders would love you to do this but they will rarely tell you that you can indeed pay extra.

Are there any advantages to paying a bit extra each month?
You can easily shave years of your mortgage. Be debt free much earlier.
You can save a shedload of cash as well as knock a few years off.

How do you use a mortgage overpayment calculator?
Enter all the figures that relate to your mortgage.
You also enter a figure that you want to overpay. You can play around with this figure.

The calculator tells you how many years you will knock off.
You get to see how much money you could possibly save.
Playing around with the actual overpayment figure can reveal that the more you can pay, the faster you finish your mortgage.

You may be surprised at some of the savings you can make.
If we take a mortgage of 100,000 borrowed over 25 years and assume you get an average 5% interest rate.
You could save over twelve thousand and shorten the mortgage by more than 3 years just by paying an extra 50 each month.

That example is paying just 50 extra every month. What if you could afford 100 a month to overpay?
We’ll use the same mortgage example figures but pay 100 extra.
You can knock a staggering 6 years or more off the length and save yourself in the region of 20 thousand.

Another plus point is the years you knock off are totally payment free.
You could be free of the shackles of your mortgage early by paying a little more now.
You never get info like this from your lender. This sort of stuff is kept quiet by the industry.

If we look at the example where we paid 100 extra and knocked over 6 years off the length.
A six year saving translates into about a forty grand saving in cash.
This is 40 grand in your pocket and not your lenders. Overpaying is difficult, make no mistake, but the rewards can be amazing.

In this article we’ve looked at the potential of fixed rate mortgages.
Regular payments and a good night sleep.
We also looked at potential savings by paying extra each month. Every little helps.

How To Get The Best Mortgage Refinance Rate.

If you are one of thousands of people who are looking to take advantage of the super low refinance rates right now you may be wondering how to make the best deal.Getting the best deal on a mortgage is no different than getting a good deal on a used car.
If I were in the market for a mortgage, I would seek to compare offers from several lenders. Once you have three or four offers, you can begin to compare and contrast. Begin by looking at all the fees. All lenders have fees, some higher than others.
Ask to look at the GFE or Good Faith Estimate.The GFE makes it easy for you to understand how much you will be spending to refinance. Once you have studied the GFE from all the lenders, you can get to work.When you talk to each bank, give the the lower costs of another lender.Tell them that if they want your business, they will have to lower the fees and rate to more than match the other gut.
This is no different than when you boough your last car. Enjoy the process knowing that in the end you will be the winner. It’s time that the little guy stick it to the big banks after all, isn’t it?
One last thing. I feel that you when you do your comparative mortgage shopping, you should do it through one service that will get the quotes for you. It is not good if many banks have your credit report pulled.One great service that I found is called Lending Universe. You can actually get  started without even giving them your social security number. And they will search multiple lenders and supply you with some of the best rates and fees from those banks.

You can check out Lending Universe Here.

Comparing mortgage rates is always a good thing to do when you are shopping around for a fixed rate mortgage. Interest rates vary from one fixed rate mortgage to another, so it is helpful to check around on the Internet to compare the different lending companies and their fixed rate mortgage ad.

The ad listed is not always the interest rate you’ll be offered when you apply for a mortgage loan. The interest rate you are offered will be determined by many factors.

The amount of interest you’ll be charged with a fixed rate mortgage loan mostly determined by your credit rating. To pay your monthly payments on time or not, is an important factor.

When you have your first time purchase, you may get higher interest rate than those who have proven their credit status and have a clean record with paying their bills on time, especially you have no prior credit before.

The difference between fixed rate mortgage and adjustable mortgage (ARM) is; the fixed rate stays the same while the ARM will change from time to time. The ARM will usually start out low and then gradually increase. The fluctuation in the interest rate will reflect whether the payment in an ARM loan increase or decrease. Throughout the term of a fixed rate mortgage, it’s payment will always stay the same.

A fixed rate mortgage over a 15 year loan will save much more money in interest than a 30 year loan. If you were to compare loans for $100,000 and the 30 year loan at 6.25 percent interest, the amount of interest is about $121,000, and a 15 year mortgage loan with 6 percent interest is about $52,000 or more in interest.

Though the monthly payments in a 15 year mortgage loan are higher, it does save a significant amount of money compared to the 30 year loan with a fixed rate mortgage.

Getting preapproved for a mortgage loan with many different lending institutions is key to getting the best fixed rate mortgage option. Just let those lenders compete each other for your business. Each lender will want your business and they will try to offer you the least amount of interest and still make a profit themselves.

A person with a clean credit report could hold out for the lowest bidder, and that is what many borrowers do if they are not in a hurry to make the deal.

Be sure to check your credit rating before you decide to go to your lending company and sign the papers on a loan. Be sure to clean it up if you find any unpaid bills or charge offs that went into collection. Going to a lender with a bad credit history is the worst situation.

So if your credit rating is less than perfect, take the time to pay off these creditors to remove the negative reports. With a good credit rating you can get a loan with a much lower interest rate. When your credit rating is good there is nothing standing in your way for a low fixed rate mortgage.