Monthly Archives: April 2009

Author : Elizabeth Grant

The housing market has recently been experiencing a bit of a slow down Although this might have come with a sigh of relief from the first-time buyers, it has left some of those thinking of investing in the Buy to Let market in a bit of a quandary Is it the right time to invest in a Buy to Let property? Well, Buy to Let is certainly a big commitment and not one to be taken lightly, however if it is well researched and undertaken as a long-term investment, it is unlikely that the average Buy to Let investor will lose money So what benefits could you reap from taking that step towards investing in the Buy to Let property market?

Buy to Let – The Benefits

With a bit of research and the right Buy to Let mortgage anybody can take advantage of this type of investment but what type of rewards from Buy to Let can you expect?

– Investment – Buy to Let allows you to maximise the longevity of your property investment

– Low Interest Rates – The relatively low Buy to Let mortgage rates is convincing many to take the Buy to Let plunge

– Professional Tenants – Over the last decade there has been an increase in the number of professionals being located to the bigger UK cities This type of tenant is often viewed as preferable to students

– Extra Money – A Buy to Let property guarantees you an extra monthly “salary”

– Profit – Don’t forget that over time your property should appreciate in value If correctly maintained and sold at the right time, a Buy to Let property can make you a significant profit

– Rental Demands – Current surveys suggest that demand for rented accommodation in some of the UK’s larger cites with high population density, is outweighing supply

– Hassle-free – If you use a reputable letting agent the letting process should be relatively hassle-free This means you can sit back and relax while you watch the money roll in

– Invest in you Investment – You can improve the value of your Buy to Let property through carefully planned renovations and therefore invest in your investment

– Financial Security – Renting out the property can provide you with a degree of financial security which you otherwise may not have

– Ex-pat Advantages – If you are going to work abroad you can rent out your property rather than having to sell it or leaving it empty

– Stability – If you are looking to invest your money, Buy to Let property is a relatively stable investment

If these sound like the kind of investment benefits that you have been looking for then maybe the Buy to Let property market is the one for you If you decide to go ahead with your decision to invest in Buy to Let property then you would be well advised to speak to a professional mortgage adviser who will be able to assess your personal circumstances and advise if Buy to Let is the right investment for you

Elizabeth Grant writes exclusively for The Mortgage Broker specialist mortgage websites. To read more of Elizabeth ‘s articles on Buy to Let Mortgages please visit the Buy to Let Centre

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Author : Ed Lathrop

There are literally, thousands of different types of mortgages available How do you know if your lenders are trying to fit you for the mortgage that’s best for you, or if they’re just looking to make some extra bucks? Here are a few ways lenders could pad their bottom lines at the possible expense of yours

1 A $400,000 mortgage with a $1,199 payment

If you find a $400,000 mortgage that only requires a $1,199 monthly payment and the term of this mortgage is for 30 years, you have found a negative amortization mortgage With this particular negative amortization mortgage, you will be paying a 1/2% interest rate for the negative amortization part of the mortgage This part of the mortgage usually lasts between 3 to 5 years Then the mortgage converts to a mortgage with a regular interest rate For this example, let’s say the negative amortization lasts for 3 years and the regular interest rate will be 6 75%

During the first 3 years, you will have a shortfall of 6 25% each year This means your principal will be growing because the interest you’re not paying during this time will be added to it

In this particular case, after three years your principal will be $441,890 34 Then, when your regular interest rate of 6 75% takes effect; your payment will become $2,967 19 each month for the remaining 27 years of the mortgage

Lenders like negative amortization mortgages, because a lot more people will qualify for larger mortgages than would have without the negative amortization mortgage So this type of mortgage is good for them, but it could be hazardous to the borrower

Before you agree to a large mortgage with a small monthly payment make sure the payment never changes and if it does make sure it will change to an amount you will be able to pay Find out all the details in advance

2 A refinance for just enough, with a HELOC added

Many times a homeowner would like to refinance his or her mortgage and pay off all his or her bills; the lender may lend this borrower just enough money to do this Then the lender will sell the borrower on an idea of taking on a Home Equity Line of Credit or HELOC Usually, it isn’t long before the borrower starts to use the Home Equity Line of Credit

The problem is a Home Equity Line of Credit is an adjustable-rate mortgage The mortgage rate can change to a much higher rate in any amount of time Most times, it will have an overall lifetime cap that will prevent it from going over more than 12% higher than the original rate

This type of arrangement doesn’t make sense to me because; why would you want to pay a potentially much higher interest rate on a mortgage you could have locked in to a low rate in the beginning?

If you can get a refinance at a low fixed interest rate like, 6%, you should take it, and if you’re equity allows, borrow an additional $20,000 to $30,000 and put it into a savings account This would make more sense than being forced to borrow it later at a rate that might be as high as 18%

3 A biweekly payment plan

A biweekly payment plan gives the illusion that a borrower is paying off his or her mortgage years sooner without making additional monthly payments After studying the biweekly payment plan, you will see this isn’t what happens

With a monthly payment plan, a borrower may be paying $2,000 a month With the same amount of money borrowed, at the same interest rate, with the same term, a biweekly plan would require a $1,000 payment every two weeks

With this biweekly payment plan, the mortgage will be paid off much sooner, sometimes, as much as seven years sooner Lenders try to give the impression the biweekly payment plan has some sort of magic, but all that is really happening is the borrower is paying more money toward his principal on a yearly basis

If a borrower pays $2,000 each month, he is paying $24,000 each year Because there are 26 biweekly periods in a year, when a borrower pays $1,000 biweekly, he is paying $26,000 each year Paying $2,000 more toward the principal each year, is the same as paying approximately $167 more per month If our borrower paid $2,167 each month, he would pay off his loan at the same time as if he had paid $1,000 every two weeks

So, what’s the problem? The problem is some mortgage companies charge big bucks for converting regular mortgages to biweekly payment plans Now, you don’t need to pay to have someone implement a biweekly payment plan for you because you know how to implement essentially the same plan yourself for free

4 A 40-year mortgage

If a person were to borrow $200,000 at 6 75% over 30 years, his or her payment will be $1,297 20 per month After 25 years, this person will still owe $65,902 84 on the mortgage After the mortgage has been paid in full, he or she will have paid $266,991 98 in interest over the course of 30 years

If a person were to borrow $200,000 at 6 75% over 40 years his or her payment would be $1,206 71 a month After 25 years this person would still owe $136,365 76 on the 40-year mortgage The total amount of interest he or she would have paid over 40 years would be $379,220 74

I’ll bet all lenders wish that everyone would convert to a 40-year mortgage They could make an extra $100,000 or so on each one of their mortgages

It is natural to be attracted to a smaller monthly payment, like the one you would get in a 40-year mortgage, but before you sign on the dotted line for a 40-year mortgage, make sure you realize you will be paying a lot of extra interest

5 Interest only payments

Interest only payments are what you typically pay in the early years of a Home Equity Line of Credit If you have a Home Equity Line of Credit, please find out if you’re only paying interest on it If you are only paying interest, your loan will never be paid off

With an interest only payment plan, whether you are paying for one month or 100 years, the payment will be the same Also, at the end of the term, whether it is one month or 100 years, the amount of money you owe will be the same as the amount of money you borrowed

It is wise to do your homework

Not all lenders are crooks Not all borrowers are mathematically challenged However, when a person doesn’t work with mortgages all the time, it is easy for him or her to commit to a mortgage that may turn out to be a nightmare a few years down the road

Doing your homework is critical because it will help you make the right mortgage choice Making the wrong choice could lead to hard financial times, and in some cases, maybe even foreclosure

Ed Lathrop is a successful Real Estate investor. He has developed EzCalculator, a Mortgage Calculator that calculates anything to do with mortgages, shows you how to pay off credit card debt and much more. EzCalculator includes the famous How to Make $100,000 on Your Mortgage calculator. There are no popups or spyware at this site. Come visit this free site at Free Mortgage Calculator!

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Author : ameen kamadia

Chapter 7 and Chapter 13 bankruptcies each have a separate purpose and a number issues a relevant in deciding which to file An individual wanting to file bankruptcy should see a qualified attorney before proceeding with the filing

There are some steps that have to be taken regardless of what type of bankruptcy is being filed, so let us begin there The Bankruptcy act which enacted new laws in 2005 has forced individuals to do a number of things before filing First, they must have taken a credit counseling course within six months prior to filing The course must be approved by the government to count for filing bankruptcy While some people may find this burdensome, particularly if they have already taken a course for another reason outside of the six month time frame, it is a rule that is in place so that people can find out if there are other more beneficial alternatives to filing bankruptcy

If it is still decided that bankruptcy is necessary after taking the credit counseling course, one must decide what type of bankruptcy to file Both categories of bankruptcy will cost money and leave a scar on credit, but the key to deciding is looking at the individuals situation Both types of bankruptcy will also put an automatic stay protecting the debtor from creditors and from having property taken out from under them However, there are a few things that a stay may not always cover and creditors can occasionally ask for stays to be removed So check with your attorney about what can be protected in your individual situation

Due to the new laws, not everyone can file a Chapter 7 Chapter 7 is what many people assume when they think of bankruptcy, an avenue to completely wipe out debt and give you a fresh start It is not necessarily 100% true that Chapter 7 will wipe out all debt, but it does give the consumer a much lighter burden to bear The problem is that only people who have a small enough amount of disposable income can file Chapter 7 Disposable income is what is left over to spend after all monthly expenses have been paid The Internal Revenue Service (IRS) is the organization that gets to decide what things should cost, so just because you pay a certain dollar amount, that does not mean the IRS will allow it Only individuals who have less than $100 a month in disposable income by IRS standards can file Chapter 7 And beyond that, a Chapter 7 will not stop foreclosure indefinitely Usually a lender will ask to have a foreclosure stay removed as soon as it is possible to do so

Chapter 13, on the other hand, will more likely help a homeowner keep his/her home While Chapter 13 requirements are also stringent, requiring the debtor to make enough money for regular payments and to keep up with payments, it will usually protect a home from being foreclosed on if the consumer works to make every payment Something homeowners need to be aware of is that if they do not make their scheduled payments, they can still put all of their property in jeopardy of being lost

So Chapter 13 is likely the best choice for someone facing a foreclosure, but each individual has a different situation and the unique characteristics of the situation should be considered before making a final decision

Ameen Kamadia aims to help Texas homeowners face the difficulties of foreclosure.
That’s why he has created an informational site that lists all the options homeowners
have. Get an unbiased, educated opinion about How
To Stop Foreclosure at http://www.foreclosure-stoppers.net

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Author : Steven Walters

How can you choose the right refinancing lender online with so many of them competing for your business? It may seem impossible, but if you want to be sure of getting a low cost loan with a low interest rate and great customer service you need to find the best refinancing lender These three things are such important parts of refinancing your mortgage that they are they keys to getting a good loan refinance Here are the three things to look for when choosing a refinancing lender:

Excellent reputation

This is the top quality to look for in a refinancing lender You need one with a great history of online lending and customer service Look them up on the Better Business Bureau website and make sure that they’ve been in business for several years and have good reviews You want to make sure that they aren’t going to close down in the next year and trust me, online lenders have a habit of coming and going quickly so find one that has been in business for several years and is likely to stick around Those companies that have been in business for several years give you a better chance of finding a quality refinancing lender

Good rates and fees

Ask the lending company that you are considering refinancing with for a complete list of their costs and fees Any reputable lending company should be happy to provide you with this list and it will make it so much easier for you to compare your refinancing options Of course you want to find a low interest rate, but pay attention to the other fees and costs as well since they can add up quickly making your loan more expensive Some fees to look for are closing costs, prepayment penalties and document preparation fees If any of these strike you as being excessively high then you’ll probably want to continue your search for a refinancing lender

Great customer service

While we all want to find that great deal on a mortgage refinance, customer service is equally or even more important than the overall cost Poor service can add stress and costs to the loan and if you feel slighted by the company you’re working with or the loan officer is impossible to contact then you may want to continue your search for the right refinancing lender too Great customer service from a lending company means that the loan officer will be available and willing to answer any questions you might have, he or she will answer them clearly and will do everything they can to help you meet your refinancing needs You really don’t ever want to work with a refinancing lender who makes you feel uncomfortable or pressured The refinance company should make you feel like your loan is the top priority to them at all times

And perhaps most importantly, make sure you do your research and compare several lenders before agreeing to an offer I would suggest getting a minimum of three quotes before making your decision Remember that you are free to choose any refinancing lender at all and are under no obligation until you actually sign the paperwork Don’t rush into anything and make sure you’ve checked out several refinancing lenders before choosing the right one for you

Learn more about refinancing lenders and how to find the best home equity loans by visiting the authors website.

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Author : Donna-Marie Coggins

The way you package your business will have a direct impact on your success in small business But packaging for small business goes way beyond the look and feel of a given product The packaging of your small business also includes imaging of all aspects of it – everything that the outside world will see lends to the image you create, and so you need to pay attention to all details, large and small, when creating your business image

What Will Your Image Say About You?

Before you can apply your packaging, imaging, and concepts across your business you need to decide what that image will be For this, you need to first answer this question: How do you want your business to be seen?

Decide how you want people to perceive your business, services, personality, and products Do you want people to see your business as:

-Funky?

-Trendy?

-Modern?

-Arty?

-Corporate?

-Professional?

-Relaxed?

-Busy?

-Exciting?

-Old-fashioned?

-Traditional?

-Sophisticated?

Decide on your image and then whatever it is you choose to portray, you need to keep that image as the focus of everything you produce and everything you do

Full-Business Packaging And Imaging

A business image is created through consistent packaging and communication Your overall business image and packaging should be giving out the same messages As you move to create your image and possibly branding, you need to review every aspect of business to make sure that message is consistent This means looking at everything from your product or service invoices to the cars you drive and the clothing you and your employees wear, whether that includes uniforms or not It means developing marketing that is consistent with your image and drafting policies for staff and representatives that dictate the presentation of your company to the world

Think of everything that your clients see, and every interaction, and then formulate a plan for portraying your business’s image Look at major and seemingly minor details, like

-Building and office decor

-Website design

-Website content

-Product description

-Communicating with clients

-Marketing materials

-Ads

-Letterheads

-Dress codes

The most important considerations when creating your business image are message and consistency You must focus the message you send, and then take steps to make sure it remains consistent Make your business recognisable and predictable and give clients the confidence of knowing who and what they are buying into when they do business with you Target your business by sending the messages that your clientele are receptive to, and that shows that you are committed to them

Donna-Marie Coggins is an author and business owner, providing guidance, resources and support to small and micro-businesses. For tips and resources on running a small business and your free guide, 60 Free And Low-Cost Ways To Get Your Business Noticed go to http://www.Donna-MarieCoggins.com

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Author : Shellaine Enfesta

The US Department of Housing and Urban Development (HUD) sells properties you may be interested or want to buy These are available because of HUD foreclosures Just like your private lenders way of getting their investments back HUD foreclosures are done to recuperate their monies The difference between foreclosures bank owned and HUD foreclosures is that the later have more discounts and the possibility cheaper or lower price You may need tips, guide and info on foreclosures to go smoothly on these types of endeavor

Buying HUD home or properties is very easy and you can get it at a lower price You can simply go online and check the listings in your area And if you are interested in buying, you may need a real estate sales professional who is authorized to sell these types of properties While most real estate sales professionals are authorized, it is better to check than to be sorry later These professionals will be the one to bid on your behalf

These properties or homes are normally 1 to 4 unit residential properties that are acquired by the Housing and Urban Development through foreclosures These are the results of a foreclosure action on an FHA insured mortgage It then becomes the property of the US Department of Housing and Urban Development and offers it for sale to recuperate the loss on the foreclosure claim

Who may qualify to buy these properties? Almost anyone can buy these homes As long as you have the cash or qualify for a loan you can buy a HUD homes But these loans are subject to restrictions These homes are initially offered to owner occupant home buyers There is a priority period for owner occupants to have the initial crack at the property All the unsold homes or properties after the priority period will be available to all types of buyers including investment prospectors (investors)

The Housing and Urban Development has a program for evacuees displaced by hurricane Katrina, Rita or Wilma They can sell them to these evacuees at a discount This program is excellent if you are really interested in buying a house

If you are interested in buying one of these homes, they are available and offered to the public for sale This is through the internet listing sites maintained by management companies under contract with the US Department of Housing and Urban Development You may need a real estate broker authorized by HUD to submit an offer on your behalf Housing and Urban Development pays the real estate professional for the commission if included in the contract

There are special programs in designated areas at a reduced price for teachers, firefighters, law enforcement officers, emergency medical technicians, non profits and local governments All these houses are sold As Is and without any form of warranty So it is encourage that you get an inspection once the offer is accepted It will be your own look out when it comes to the shape and condition of the property

Some of these HUD foreclosures can qualify for FHA insured loans Are you interested in a foreclosures bank owned property or a HUD foreclosures home or properties? With all these tips, guide and info on foreclosures you can be assured that you are not moving ahead blindly Make the right decision

For All Your HUD Foreclosures, And Foreclosures Bank Owned Tips and Info go to:
http://www.lingwellness.com/foreclosures.php
http://www.lingwellness.com/hudforeclosures.php

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