Browsing Tag

mortgage tips

Debt

Top Ways To Save Money On Your Mortgage

Homeowners all share one thing in common – their largest monthly payments go towards their mortgage. Without the shadow of a doubt, the majority of these homeowners would love to be able shorten the lifespan of their loan and cut the huge monthly premiums. Take a look at some of the most helpful and effective ways to save money on your mortgage.

Make An Extra Payment Each Year

This is one of the easiest ways to cut back on the cost of your mortgage – making an extra payment towards your mortgage every year. The great thing is that these payments are taken from your principal and not the interest. So as well as lowering the remaining balances on your mortgage, you also avoid having to pay interest every month.

March 25, 2013

Debt

Should I Hire A Mortgage Broker?

What is a mortgage broker?

A mortgage broker is a person who will help you to find a mortgage by doing the leg work for you. Mortgage brokers can save you time, and sometimes, they can find you a better rate than you can find on your own. Mortgage brokers represent a large number of financial institutions and they are compensated by the financial institutions when you are approved for a mortgage. So, the services they provide to you are free.

Will a mortgage broker find you the best rate?

Although, ideally, you would expect to get the best possible mortgage interest rate when you hire a mortgage broker, this is not always the case. For instance, when my husband and I were ready to purchase our second home, we got in touch with a local mortgage broker. She took our information over the phone and was able to provide us with an interest rate in less than two hours. She was very efficient and we were satisfied with the rate. But, as circumstances would have it, we ended up doing a little leg work of our own, and we were able to get an even better rate. This really surprised me as I had expected that the mortgage broker would have provided us with the lowest rate available.

October 24, 2012

Debt

Tips For Saving Money On Your Mortgage

Improve your Credit Score

Did you know that you can actually save money on your mortgage? Most people don’t realize this, however, it is true. The best way to save money on your mortgage is to first increase your credit score and improve your lending history. By doing this you will show the mortgage lender that you are a reputable borrower and that their money is safe with you. Now, that is the obvious answer as to how to save money, but there are a couple more ways.

July 20, 2012

Debt

How To Get Approved For A Mortgage

If you are sick and tired of paying rent, knowing that you are practically throwing away your money month by month, here are a few things you should know about before you go and get a mortgage preapproval from your local financial institution

Access To Credit

Before a financial institution will lend you money they will want to know how much access to credit you have. For example, they will ask you about your limits on your credit cards, lines of credit, overdraft protection on your bank accounts, as well as on any loans you may have. Even if you are not carrying a balance on your credit products, the lending institution will still have to take your limits into account. The lending institution may ask you to decrease or get rid of some of your credit products in order to approve you for a mortgage.

July 4, 2012

Debt

What You Need To Know About The Total Debt Service Ratio

What is a Total Debt Service Ratio?

Total Debt Servicing Ratio, or TDSR for short, is a measurement that tells you the percentage of gross annual income required to cover the annual costs associated with housing and all other debts you may have such as loans, lines of credit, credit cards, etc.

Why is TDSR Important?

This is how a lending institution will determine how much they can lend you when you apply for a mortgage or other type of credit product such as a home equity loan. The lending institution wants to ensure that you will be able to afford to repay them if they lend you money. TDSR is a way of showing your credibility, so to speak.

June 25, 2012

Older Posts

Newer Posts