If you are currently looking for a new home, chances are that in all the excitement you won’t really give any thought to the type of home loan mortgage you take out, instead going with the first one offered to you. This could be a serious mistake – costing you thousands, if not tens of thousands. Make sure you know all about the different types of home mortgage loans before you starting looking for that new dream home!
Here are some of the basic types of mortgage loans:
Fixed-rate home loan mortgage -
As the name suggests, this is a plain-vanilla home loan. Basically you borrow a certain amount over a certain period at a fixed rate of interest. You then pay the same monthly installments for the life of the home loan. The benefit of a fixed-rate home loan is that you can easily budget for the repayments. The downfall of a fixed-rate home loan is that you could end up paying a higher rate of interest than everyone else – no one knows what interest rates will be in 15-20 years time!
Adjustable-rate home loan mortgage -
Mirroring the fixed-rate mortgage is the adjustable-rate mortgage. Again, you borrow a certain amount over a certain period, however in this case the interest rate is not fixed, but is adjustable (or ‘floating’ as you may also hear it called). The upside to adjustable-rate home loans is that the interest rate at the start of the loan period can be lower than the fixed rate would be. The downside is that it is difficult to budget for, as the amount can change, and you are at the mercy of something outside of your control – interest rate fluctuations, which can change quickly.
Hybrid home loan mortgages -
Trying to fill the void left with the downside of the fixed and adjustable/variable-rate home loans, the hybrid home loan lets you fix the interest rate over the first part of the home loan, and then switch to an adjustable/variable rate later. The upside of hybrid home loans is that they allow you to budget for your repayments during the expensive time when you first buy the home. The downside is that if floating rates are much higher than your fixed rate when the switch happens, you could find you are paying a much higher repayment each month.
To see our list of recommended mortgage lenders with competitive rates for refinance, purchase loans, second mortgages, home equity loans and all other mortgage loans, visit this page Recommended Mortgage
Lenders
Saturday, May 16, 2009
Mortgage Brokers For Home Loan Refinance-Refinance Online
Mortgage Brokers For Home Loan Refinance - Refinance Online
Online brokers negotiate financing deals with several lenders. This may mean that you can find a better deal through their site than by working with the lender. Not all mortgage brokers guarantee the lowest refinancing rates, so you should also compare brokers.
Understanding Mortgage Brokers
Mortgage brokers specialize in finding financing. They work with many lenders to offer you several financing choices. They partner with traditional banks as well as thrift institutions, credit unions, and mortgage companies. They can even connect you with subprime lenders if you have poor credit.
Not all brokers call themselves "mortgage brokers." But any site that offers bids from more than one lending company is a broker. Make sure you know if you are dealing with a broker, since this will affect your closing costs.
Brokers collect a fee for each loan they refer to a lender. Sometimes you will pay this fee as part of the closing costs, other times it will come out of the mortgage company's fees. Even with the additional expense of a fee, brokers can usually find you better deals than if you shop alone.
Working With Broker Sites
Online broker sites enable you to make quick comparisons from basic financial information that you provide. Usually, you will need a general idea of your credit score, loan amount, and down payment. The quote you receive gives you a rough idea of rates and closing costs.
Take the time to check with a couple of broker sites to find the best deal. Each broker works with different lenders and negotiates unique deals. Spending a few extra minutes analyzing quotes can save you thousands in interest costs.
Taking The Next Step
Once you have narrowed your choices down for refinancing, request a detailed quote from the lender. This will require the financing company to look at your credit score. You don't want to request too many detailed quotes, since your credit score is temporarily lowered every time a lender makes a credit inquiry.
The detailed quotes will list rate along with terms, such as required points. Even with this accurate quote, it can change hourly based on market indexes and bank rates. If you find a good deal, it is best to act on it quickly to lock in rates.
About the author:
View our recommended mortgage re fi lenders.
Written by: Carrie Reeder
Online brokers negotiate financing deals with several lenders. This may mean that you can find a better deal through their site than by working with the lender. Not all mortgage brokers guarantee the lowest refinancing rates, so you should also compare brokers.
Understanding Mortgage Brokers
Mortgage brokers specialize in finding financing. They work with many lenders to offer you several financing choices. They partner with traditional banks as well as thrift institutions, credit unions, and mortgage companies. They can even connect you with subprime lenders if you have poor credit.
Not all brokers call themselves "mortgage brokers." But any site that offers bids from more than one lending company is a broker. Make sure you know if you are dealing with a broker, since this will affect your closing costs.
Brokers collect a fee for each loan they refer to a lender. Sometimes you will pay this fee as part of the closing costs, other times it will come out of the mortgage company's fees. Even with the additional expense of a fee, brokers can usually find you better deals than if you shop alone.
Working With Broker Sites
Online broker sites enable you to make quick comparisons from basic financial information that you provide. Usually, you will need a general idea of your credit score, loan amount, and down payment. The quote you receive gives you a rough idea of rates and closing costs.
Take the time to check with a couple of broker sites to find the best deal. Each broker works with different lenders and negotiates unique deals. Spending a few extra minutes analyzing quotes can save you thousands in interest costs.
Taking The Next Step
Once you have narrowed your choices down for refinancing, request a detailed quote from the lender. This will require the financing company to look at your credit score. You don't want to request too many detailed quotes, since your credit score is temporarily lowered every time a lender makes a credit inquiry.
The detailed quotes will list rate along with terms, such as required points. Even with this accurate quote, it can change hourly based on market indexes and bank rates. If you find a good deal, it is best to act on it quickly to lock in rates.
About the author:
View our recommended mortgage re fi lenders.
Written by: Carrie Reeder
Friday, May 15, 2009
MoneyNet Takes Finance Personally
Moneynet, the personal finance specialist, is expanding its range of product guides to include financial lifestyle information to appeal to families, students and other consumer markets. Moneynet, the most established consumer research website in the UK has taken the initiative in response to concerns that consumers are becoming alienated by complex finance information.
The family finance guide is the sixth publication to be released by moneynet and initially incorporates two sections, with the intention of future content expansion. The first section covers financial basics for parents, with a summary on the financial resources that are available to families, including Child Benefit, Statutory Maternity Pay, Child Tax Credits, Child Trust Funds and the Education Maintenance Allowance. The second section offers some suggestions to parents who wish to encourage their children to become financially aware and responsible with money.
The family finance guide will be extended later this year to encompass issues such as the financial practicalities of bereavement, inheritance tax, financial protection for the family, planning your child’s education, and divorce.
With increasing pressure on personal finance product providers to present more transparent information for consumers, companies which proactively seek a more positive interaction with customers are welcomed by the public. In terms of managing customer expectations online, moneynet can appreciate the increase in internet users going online to research and manage their money #, whilst acknowledging the fact that most consumers have yet to feel comfortable with their finances. Credit Action reported in May this year that half the people who take out credit in shops, had not intended to do so when they left home, whilst a report published by Cambridge University allegedly revealed that nine million Britons suffer from financial phobia. These factors secure moneynet as a highly relevant tool to assist consumers with their financial homework.
Moneynet has been championing greater access to financial product information for consumers since 1997. The company hopes that information which is based on a ‘stage of life’, as well as encompassing technical details about a particular product, will be more accessible to visitors, encouraging them to seek the best deal for their loan, mortgage, credit card and insurance.
Richard Brown, Chief Executive of Moneynet said of the guides, “since 1997 moneynet has been at the forefront of the move to make financial information more accessible to the consumer. As the first personal finance website in the UK to publish inter-active and comprehensive data on the UK personal finance market we have always believed that the consumer should be better informed. Our latest guides will add to the existing library and help to further educate our users, making them better positioned to challenge the product providers.”
# According to market research firm NOP World (nopworld.com)
Further information:
Contact: Jane Meares, Communications Manager
Tel: 020 8313 9030
E-mail: jmeares@moneynet.co.uk/
Web: http://www.moneynet.co.uk/
Address: 2nd Floor, Sussex House, 8-10 Homesdale Rd, Bromley, Kent. BR2 9LZ
About the Author
Moneynet.co.uk is the UK’s most established personal finance research and data website. The company offers consumers a wide range of low cost financial products: from mortgages and personal loans; to car, home and medical insurance; credit cards; savings accounts and best-buy fixed rate products.
Written by: Rachel Lane
The family finance guide is the sixth publication to be released by moneynet and initially incorporates two sections, with the intention of future content expansion. The first section covers financial basics for parents, with a summary on the financial resources that are available to families, including Child Benefit, Statutory Maternity Pay, Child Tax Credits, Child Trust Funds and the Education Maintenance Allowance. The second section offers some suggestions to parents who wish to encourage their children to become financially aware and responsible with money.
The family finance guide will be extended later this year to encompass issues such as the financial practicalities of bereavement, inheritance tax, financial protection for the family, planning your child’s education, and divorce.
With increasing pressure on personal finance product providers to present more transparent information for consumers, companies which proactively seek a more positive interaction with customers are welcomed by the public. In terms of managing customer expectations online, moneynet can appreciate the increase in internet users going online to research and manage their money #, whilst acknowledging the fact that most consumers have yet to feel comfortable with their finances. Credit Action reported in May this year that half the people who take out credit in shops, had not intended to do so when they left home, whilst a report published by Cambridge University allegedly revealed that nine million Britons suffer from financial phobia. These factors secure moneynet as a highly relevant tool to assist consumers with their financial homework.
Moneynet has been championing greater access to financial product information for consumers since 1997. The company hopes that information which is based on a ‘stage of life’, as well as encompassing technical details about a particular product, will be more accessible to visitors, encouraging them to seek the best deal for their loan, mortgage, credit card and insurance.
Richard Brown, Chief Executive of Moneynet said of the guides, “since 1997 moneynet has been at the forefront of the move to make financial information more accessible to the consumer. As the first personal finance website in the UK to publish inter-active and comprehensive data on the UK personal finance market we have always believed that the consumer should be better informed. Our latest guides will add to the existing library and help to further educate our users, making them better positioned to challenge the product providers.”
# According to market research firm NOP World (nopworld.com)
Further information:
Contact: Jane Meares, Communications Manager
Tel: 020 8313 9030
E-mail: jmeares@moneynet.co.uk/
Web: http://www.moneynet.co.uk/
Address: 2nd Floor, Sussex House, 8-10 Homesdale Rd, Bromley, Kent. BR2 9LZ
About the Author
Moneynet.co.uk is the UK’s most established personal finance research and data website. The company offers consumers a wide range of low cost financial products: from mortgages and personal loans; to car, home and medical insurance; credit cards; savings accounts and best-buy fixed rate products.
Written by: Rachel Lane
MoneyNet Tackles Funding University With New Student Finance Guide
Consumer research site, moneynet, has published its seventh online brochure in the series of personal finance product guides. The student finance guide, collated by two graduates at moneynet, was generated in response to requests moneynet received from parents, students and prospective students who had serious financial concerns about how to fund university.
Graduates are reportedly leaving university with debts of over £13,000. With the advent of Child Trust Funds as a long term measure to assist with the costs of higher education, there is pressure on financial providers to not only consider the type of financial product they offer students, but to additionally review how they communicate complex terms to this young market and to ensure students have a solid understanding of the personal finance market.
In response to widespread public concern and letters from its customers who have families, moneynet has published a comprehensive guide to those factors which affect student finance and university budgets, including realistic expectations and practical suggestions. Key recommendations include:
* Gathering as many savings as possible before university, through birthday and Christmas presents, summer jobs, part-time jobs and any other savings accounts
* Shopping around for the best deals on household insurance, current accounts and savings accounts
* Bulk buying weekly groceries and being strict about spending, borrowing and lending
Richard Brown, Chief Executive of Moneynet said “We all understand the importance of budgeting, but for students this can be especially difficult. Our Guide to Student Finance is designed to provide some simple help and advice aimed at making those years in higher education a bit more bearable.”
Moneynet also provides an online banking management tool called AccountStore, which is a fast, simple and secure way to manage money. AccountStore would allow students to manage all their online accounts in one place under a single login, making it easy to keep track of credit card bills, overdraft spending, savings and standing orders.
Other publications in Moneynet’s series of consumer product information guides include: credit cards, mortgages, loans, life insurance, ethical investing and family finance. The website also features a comprehensive glossary for consumers who wish to look up more general personal finance terms.
Resources:
http://www.moneynet.co.uk/accountstore/index.shtml (Online banking management tool)
http://www.moneynet.co.uk/student-finance-guide/index.shtml (Student finance guide)
* * * * * * * * * * * * * * *
Editor's notes
Moneynet.co.uk is the UK’s most established personal finance research and data website. The company offers consumers a wide range of low cost financial products: from mortgages and personal loans; to car, home and medical insurance; credit cards; savings accounts and best-buy fixed rate products. Moneynet.co.uk is an ethical, impartial and comprehensive source of consumer finance information, covering the whole of the personal finance sector.
Moneynet was founded in 1997 by Chief Executive Richard Brown to simplify the personal finance market and provide consumers with impartial and interactive information on financial products and services.
Press enquiries
Richard Brown, Moneynet Chief Executive, 020 8313 9030
Consumer enquiries:
online@moneynet.co.uk
http://www.moneynet.co.uk
* * * * * * * * * * * * * * * * * * *
About the Author
Online distribution by bigmouthmedia: http://www.bigmouthmedia.com
Bigmouthmedia is a search engine optimization (SEO) + search engine marketing agency, specialising in paid search (PPC), organic search (optimisation), link strategy (online PR) + consultancy services in online brand protection.
Written by: Rachel Lane
Graduates are reportedly leaving university with debts of over £13,000. With the advent of Child Trust Funds as a long term measure to assist with the costs of higher education, there is pressure on financial providers to not only consider the type of financial product they offer students, but to additionally review how they communicate complex terms to this young market and to ensure students have a solid understanding of the personal finance market.
In response to widespread public concern and letters from its customers who have families, moneynet has published a comprehensive guide to those factors which affect student finance and university budgets, including realistic expectations and practical suggestions. Key recommendations include:
* Gathering as many savings as possible before university, through birthday and Christmas presents, summer jobs, part-time jobs and any other savings accounts
* Shopping around for the best deals on household insurance, current accounts and savings accounts
* Bulk buying weekly groceries and being strict about spending, borrowing and lending
Richard Brown, Chief Executive of Moneynet said “We all understand the importance of budgeting, but for students this can be especially difficult. Our Guide to Student Finance is designed to provide some simple help and advice aimed at making those years in higher education a bit more bearable.”
Moneynet also provides an online banking management tool called AccountStore, which is a fast, simple and secure way to manage money. AccountStore would allow students to manage all their online accounts in one place under a single login, making it easy to keep track of credit card bills, overdraft spending, savings and standing orders.
Other publications in Moneynet’s series of consumer product information guides include: credit cards, mortgages, loans, life insurance, ethical investing and family finance. The website also features a comprehensive glossary for consumers who wish to look up more general personal finance terms.
Resources:
http://www.moneynet.co.uk/accountstore/index.shtml (Online banking management tool)
http://www.moneynet.co.uk/student-finance-guide/index.shtml (Student finance guide)
* * * * * * * * * * * * * * *
Editor's notes
Moneynet.co.uk is the UK’s most established personal finance research and data website. The company offers consumers a wide range of low cost financial products: from mortgages and personal loans; to car, home and medical insurance; credit cards; savings accounts and best-buy fixed rate products. Moneynet.co.uk is an ethical, impartial and comprehensive source of consumer finance information, covering the whole of the personal finance sector.
Moneynet was founded in 1997 by Chief Executive Richard Brown to simplify the personal finance market and provide consumers with impartial and interactive information on financial products and services.
Press enquiries
Richard Brown, Moneynet Chief Executive, 020 8313 9030
Consumer enquiries:
online@moneynet.co.uk
http://www.moneynet.co.uk
* * * * * * * * * * * * * * * * * * *
About the Author
Online distribution by bigmouthmedia: http://www.bigmouthmedia.com
Bigmouthmedia is a search engine optimization (SEO) + search engine marketing agency, specialising in paid search (PPC), organic search (optimisation), link strategy (online PR) + consultancy services in online brand protection.
Written by: Rachel Lane
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