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Posts Tagged ‘Mortgages’

Mortgage

“A penny saved is a penny earned”… or so the old proverb goes. Of course, the value of a penny has changed somewhat from the time when your mother offered her wisdom on the value of keeping what you earn. Today, you could save thousands of dollars by simply making the right mortgage decision. If you’re like most Canadian homeowners, your mortgage is a goldmine of potential savings.

In the past few articles, we’ve talked about the importance of your mortgage as one of your most significant financial decisions. We’ve explored the value of seeking the advice of a mortgage professional -whether you’re buying a home or renewing an existing mortgage.

Today, let’s take a look at the bottom line: the savings you can enjoy by making the right mortgage decisions.

It is the primary role of a mortgage broker to find you the right product for your personal situation. A mortgage broker is a financial professional and – like your investment advisor – he or she will want to understand your personal situation and payment preferences. Your mortgage broker has access to a broad spectrum of lending institutions, so you can do some valuable comparison shopping for the right combination of features, rates and mortgage options.

All these choices offer you substantial opportunities to save money over the life of your mortgage.

If you are like most homeowners, you are focused -for good reason – on finding the best possible rate for your mortgage. Your mortgage broker can offer you the best range of rate options and terms. If a mortgage broker can get you one per cent off the posted rate, that could translate into more than $13,000 in interest per $100,000 borrowed over a 25-year amortization schedule. If, however, you believe that most mortgage rates are basically the same from one institution to the next, then consider the fact that even an eighth of a point difference in the rate can offer significant savings over the duration of your mortgage.

But it’s also important to look beyond the rate. There are other ways to find savings in your mortgage. Your mortgage broker is up-to-date on market trends and new opportunities… as well as some of the tried-and-true ways to save money in a mortgage.

Do you get an annual bonus in your job? You may want to use that bonus to pay down the principal of your mortgage. If you pursue this strategy consistently over the life of your mortgage, you could save thousands of dollars in interest by paying your mortgage off sooner.

Are you paid bi-weekly or bi-monthly? Consider a change from the usual monthly mortgage payment. Set up your mortgage payment schedule to coincide with your pay period. Again, you can shave years off your mortgage, and enjoy thousands of dollars in savings.

In the coming weeks, we’ll look at some of these savings opportunities in more detail. In the meantime, consider the old penny proverb again. How much is your time worth? Time savings is one of the key, unexpected benefits that clients say they have enjoyed when they choose to work with a mortgage broker. Above all, a mortgage broker is an expert in customer service, and that means that your broker looks after every detail of your mortgage research and negotiations on your behalf.

Mortgage Loans

A lot of people in the world have to face financial problem when global financial recession is around us. It makes what we are fighting for, become worthless and we have to do what’s best for us. People keep struggling on their way to make money because they know money is the only way they can achieve what it’s called as happiness. We have to make sure that the money we get from any source is enough to pay all the expenses we make including the unexpected expenses like paying for the broken car or the school costs.

People go to work because they need money; they do anything to make money because the only reason we still alive is money. You have to believe me that there is no other ways that make you happy, but money. We know that this kind of thought is bad and worthless, but so far, people stay in the line because they need money, they love their children and they are willing to do anything to get the money, as long as it’s legal of course. Talking about legality, there is another option you can take when you have not enough money for your life and it’s legal. You must always hear about mortgage, don’t you? What do you know about mortgage? Is it just a mortgage loan is a loan secured by real property through the use of a mortgage note which evidences the existence of the loan and the encumbrance of that realty through the granting of a mortgage which secures the loan? Or they have something wider that it is? For people who work on military sector know that the money they get from the government is not enough and they have to take military mortgage loans as another option to get the money in their life.

Who would have thought it? Certainly noone in the offices here would have. Do you remember those credit card companies who were so keen to throw money and endless supplies of plastic cards at you? Well now they want it all back! If you have then you’ll no doubt be aware that there’s no longer such a thing as a friendly loan. All those lenders that just a few years ago were so keen to throw funds at you now are insisting on conclusive proof that you have the means to pay them back. Some people are even finding that with a good credit rating, money in the bank and a healthy property they are having trouble getting a loan or credit card.

Is it the same for mortgages?

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It is true that bankers also invest money in securities, and that some of these are foreign, but here again the proportion invested abroad is so small that we may be reasonably sure that any money left by us in the hands of our bankers will be employed at home.

But in actual practice those who save do not pile up a large balance at their banks. They keep what is called a current account, consisting of amounts paid in in cash or in cheques on other banks or their own bank, and against this account they draw what is needed for their weekly and monthly payments; sometimes, also, they keep a certain amount on deposit account, that is an account on which they can only draw after giving a week’s notice or more.

On their deposit account they receive interest, on their current account they may in some parts of the country receive interest on the average balance kept.

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