Mortgage Tips

Mortgage

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Most of the time the word "mortgage" comes when you are going to buying a home .Here are some basic words which will clarify your all about basic mortgage.

Term-Term is the period or time to pay off the mortgage loan .It may be 10 year or may be 30 year.

Rate- It is the interest rate of your mortgage loan.

Cost-It is the closing cost. It includes all type of fees on documents at the time of registration, notary or attorney fees.

Select a Mortgage Term

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Select one term either longer term lower payment otherwise short term and larger payment . If you pay off your mortgage quickly then you will become the owner of your asset . If you will pay off your mortgage loan in a larger period then the payment per month will not be high for you.

Select a mortgage broker

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If you are new in this field and if you haven't sufficient idea regarding mortgage then finding a right home with best financing will be much harder. If you will consult with a mortgage broker or a local bank then it will become easy for you.

Adjustable rate mortgage (ARM)

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People always like to take out an ARM loan. Here your interest rate is fixed. ARM is always a good plan for the people who were in financial industry.

Try to pay off your mortgage loan early

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If you have bought a home with a term of 30 years then it is like you will be paying forever for the purpose of your home.

So try to pay a small extra money on every month towards your total principal and try to make at least one extra full payment on one year. By doing this you will reduce your loan by years.

Prepayment Penalties on ARM

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It is not a matter which mortgage you have selected but before choosing a mortgage loan clarify with all the conditions .Some times mortgage broker or the lender wants a prepayment penalties.

choose an interest only mortgage option

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If you are interested to pay a lower payment monthly for the 1st few years then an interest only mortgage may be the right program for you .

Choose a right mortgage broker

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Now a days , finding a mortgage broker is not a difficult work. Internet is available with everyone .So you can easily get help from great mortgage brokers.So try to choose the best mortgage broker

Try to set up a financial budget to fulfill your dreams

Everyone works hard to earn some money. If you are spending much more then your income then you may face problem in future. If you don't want to face problem in future then it is advisable to prepare a budget to manage your personal finance.

Steps to make a budget
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I will advice to follow certain steps which will help you in making a budget for managing personal finance.


1) Calculate your income: Note down all types of incomes such as monthly salary, bonus and also include the earning on investment.
2) Determine the Expenses: You have to calculate the total monthly expenses and also categories according to the types such as

*Home- Try to keep a fixed amount towards your mortgage payment or rent
* Food-Keep a fixed amount for grocery items.
*Tax-Calculate the total amount of money paying towards tax.
*Medical- Keep a certain amount for your medical bill.
* Utilities-keep some amount for utility bills such as telephone bill, Internet and water.

After calculating all expenses, try to keep some amount for your future saving.

Build your dream home

There was a boy and a girl and sitting under a tree, discussing about their future. At this time they had discussed to build a dream home , where they can enjoy their future. After few years they had married. Now they wanted to fulfill their dream .They hadn't any idea regarding building a home .They thought to take some advice from a home builder. So they went to design a plan from a home builder.

I am presenting the following , what is the home builder

had told them.So you also read it . It may help to you.

Building a dream

home is a great achievement in your life.It may not be a great success for richest people but it is a great

success for the general people.

at first think your budget, how much can you spend for building a home.If you haven't sufficient money ,then you may need a loan and for loan it is better to discuss with a mortgage company.

Before going to buy a home or build a home , select the place . It is nearer to school, medical , markets , public transportation and that must be a quiet place.

Every one has a dream how will they make their future home .So close your eye once and try to design the picture of your home .After that consult with an architect.

He will listen your thought and will specialize a special CAD computer programs for your dream home.

After that, if you have time then give your time to build your own home otherwise give all the task to a contractor and take a look some time .

Today on the morning ,I had seen the couple on their garden of their own home . A small cute baby was playing .They are really happy now.

Check are you eligible or not for the Obama Home Affordable Modification Program ( HAMP)

Today I like to post the topic about President Barack Obama's HAMP plan .Really it will help all the home owner who are struggling to receive a mortgage or to the people, who are suffering with financial problems such as family problem , loss of job and death of any family member.

There are certain requirements to eligible for the HAMP

1) Show documents that you are suffering with financial hardship

2) The loan must be originated before one year means on or before 1st January 2009

3) The total amount of loan should not be more than $729,750 for one property

4) The mortgage should be the borrower's primary residence.

The process to apply

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1) Contact the loan lender and request him to consider your loan for Obama's HAMP plan.

2) Prepare the documents to prove you are suffering with financial hardship.

3) Collect all the financial statements to show details of income and expenses.

4) Show two months banks statements

5) Show all the proof regarding tax returns, award letters and income statement .

This plan is designed to help the borrowers .They can apply it . They can qualify by directly from their lenders.This program is completely free to the borrowers .So prepare all the financial statements and contact your lender to approval for the process .