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Save Hundreds A Month On Your Mortgageby: Joseph Mcnealy
When it comes to American spending habits, the sad truth is that most people don't put their financial assets to the best use. One of the greatest examples of this is the home mortgage. Surprisingly, most people fail to educate themselves about the dangers and the pitfalls of not shopping for the best mortgage. Worst still, many have not taken advantage of low interest rates that could save them hundreds of dollars a month. In addition to saving large sums of money every month, the homeowner in question would save thousands overall on the standard 30 year mortgage. This is before other cost saving measures such cutting unnecessary services, refinancing a car loan, paying off credit cards (to end the high cost of monthly double digit interest) and changing spending habits. The power of such a rate reduction could be used by millions of American homeowners to reduce debt, invest in retirement, or to simply put money away for an emergency. It is amazing that so many still neglect to utilize these powerful and straightforward techniques. This then begs the question of where to start in order to reap the rewards of refinancing your mortgage. When it comes to finding home mortgage information, the Internet has become a boon to the weary researcher. In fact, finding sites about mortgage refinancing is far from the hard part when it comes to searching the 'Net. Perhaps the hardest part about searching for financial information online is insuring that one will indeed get the best quote. In order to help you in your online search for a better home mortgage rate, I have listed a few tips and questions below: Will your credit rating be a hindrance to a new loan? Will the lender work with you if you have bad credit? Are you getting a new loan to refinance your rate? Or are you getting a loan for a secondary reason (paying off debt or home improvement needs for example). Have you seen your credit report lately? Is it accurate? Are there steps that you can take in the short term to improve your credit score before you get the mortgage quote (such as paying off small debt or challenging negative items on your credit report)? Does the site giving the mortgage quote, give you a quote from more than one lender? Some sites give you quotes from up to four lenders at once. Is the quote free? Also, you should be under no obligation should you decide not do business with the lender. These are just a few of the points that one should remember when searching the vast resources of the Internet for answers to your financial questions. If used wisely, a new mortgage could be the step that changes your financial future for the better.
How To Save Thousands in Interest on Your Home Mortgage!by: Sameer S Panjwani
So you have a mortgage on your home or planning to get one? Here≠s something to consider if you want to reduce your interest payment and save on thousands of dollars. Consider going in for a bi-weekly mortgage payment plan. So, what is a bi-weekly mortgage payment plan? The difference in this type of mortgage plan lies in the frequency of payments. Out here you make your payments every two weeks instead of every month. By going in with such a payment plan, you end up paying for the 52 weeks in a year, i.e. 1 month more than the otherwise 12 payments you would make with the monthly plan (52 / 4 = 13 payments in a year). You may think why pay extra? But the benefits are there for all to see. By going in for such a mortgage plan, you are reducing the tenure of your loan as well as continuously reducing the principal and interest which has to be repaid. An illustration to show what we mean - Suppose you were to go in for a mortgage of $150,000 for a term of 360 months at an interest rate of 6%, your monthly payment would work out to $899.93 and your total interest through out the tenure of the loan would work out to $173,757. Now consider the same mortgage taken on a bi-weekly payment plan. Your bi-weekly payments would be of $449.67 while your total interest for the entire tenure would work out to only $135,294 + you end up completing the loan in 24 years instead of 30. Huge difference! The savings from such a payment plan are huge and are worth considering if you can afford to make the payments every two weeks. At least, keep it as an option!
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