First Mortgage Support

by Luke Goodin

Compound interest is the very method that finance companies have made their money for many decades. However at last competition from a booming worldwide economy has forced the industry to give consumers a better deal.

Compound interest in a nutshell is basically the daily calculation of interest that accumulates into thousands of dollars designed to suck the consumer dry.

FACT: I used an interest calculator to work out how much interest my best friend Brad would be paying if he continued paying the normal repayments on his $280,000 home loan over 30 years.

It worked out he would be paying $412,000 JUST IN INTEREST over 30 years. Now if he put his homebuyers grant (for overseas viewers of this article in Australia first home buyers get a grant from the government of $12,000) straight into his loan it would cut 7 years off his loan. A total saving of just over $150,000 in compound interest just from that small investment of $12,000.

The same applies if you put just $5.00 or $10.00 per week extra into your loan or if you get the ultimate deal where you put your whole salary into the mortgage loan account and draw only the funds you need to survive out. These methods blow compound interest away real quick and save you hundreds of thousands of dollars.

If you are in this rut there is a solution, refinance with a company that offers these services without costing you an arm and a leg. You owe it to your self to do something about it now.

This information is potentially worth millions of dollars to you if you are a property investor. Why would you continue to pay someone else for the profits you are making. Or if you are in the situation like my friend Brad why would you ever continue to GIVE YOUR MONEY TO SOMEONE ELSE?

It doesn’t make sense to be that silly.

This does not mean you are silly it just means that before now you were not educated on what to do about saving money on your home loan.

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by Stephen L. Nelson, CPA

You might think that deciding to refinance a mortgage requires only a quick comparison of loan interest rates. Unfortunately, that’s not really true. Refinancing is trickier than that! Fortunately, three useful rules of thumb can often help you make sense of refinancing opportunities.

Rule 1: Don’t Ignore Total Interest Costs

You really want to use refinancing as a way to reduce the total interest cost you pay. While that sounds simple in principle, it is sometimes difficult to do. The interest costs you pay are a function of the interest rate, the loan balance, and the loan term period.

When people refinance, they tend to focus solely on the loan interest rate. But they often don’t pay as much attention to the loan term or the loan balance.

When you use refinancing—even refinancing at a lower interest rate—to increase your borrowing or to extend the time over which you borrow, you often aren’t saving money.

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by Jay Moncliff

If you are interested in buying a home then you are certainly shopping for a mortgage quote from a variety of different lenders. This is important because when you have more than one mortgage quote you can compare the different lenders and find the one that is best for you. Frequently, the average mortgage quote online will be lower than the average mortgage quote from your neighborhood bank. Since every penny counts and you want to save as much money as possible, get a mortgage quote online as well as from your neighborhood lenders to find the best deal for you. The following suggestions will help you find a mortgage quote online as well.

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by Matthew S. Scott

When Maurissa Stone wanted to refinance her Laurel, Maryland, townhouse in 2003, reports of predatory lending made her cautious. While she didn’t know the different types of loans available, she knew she didn’t want to be stuck with one that would put her home at risk and jeopardize her future financial plans.

After shopping around, Stone, a management consultant for NeighborWorks America, met Leighann Sudhoff, a representative of CFIC Home Mortgage. Instead of immediately selling Stone on loan products, Sudhoff established a relationship with her. She helped Stone clear her student loan debt and improve her B-rated credit score so she’d be able to refinance through an FHA streamline loan, which requires less documentation for approval but results in a lower monthly principal and lower interest payments for the borrower. For Stone, the loan officer she chose played a central role in her homeownership journey.

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by Curtia James

You’ll probably spend weeks or even months selecting the home of your dreams. Choosing a lender to finance it will take less time but should be handled just as carefully. There is a difference between mortgage brokers and lending institutions, explains Stacey D. Stewart, president and CEO of the Fannie Mae Foundation. “A broker acts as a bridge between the consumer and a mortgage lender and may offer products for a variety of lenders. A mortgage lender is a financial institution that provides credit directly to the consumer.” A broker often charges an up-front fee for services. So if you use one, ask about the fee structure.

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The TurnKey Investor’s “Subject To” Mortgage Handbook is a guide written especially for the independent-minded investor who is seeking a more economical way to buy investment property than to make a large down payment and then qualify for a mortgage. A lesser-known seller-financing technique called the “subject to” mortgage - in which the buyer safely and legally takes over and manages an existing mortgage offered by the seller - allows investors greater freedom and flexibility. The TurnKey Investor’s “Subject To” Mortgage Handbook offers guidelines for getting qualified sellers to call the reader and offer a “subject to” mortgage, tips on how to guard against common pitfalls, and much more. A “must-read” for experienced investors frustrated by bank mortgage demands.

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