Pay Off Mortgage Early

Any extra or additional payments on mortgage pay off mortgage early. There are three avenues to pay off mortgage early without paying a penalty. The borrower can use bi-weekly mortgage payment, lump sum mortgage payment, or additional mortgage payment.

The terms and conditions of your mortgage tell how much you can pay extra or additional without paying penalty. The mortgagor or borrower pays penalty when the extra or additional payment exceeds the limitations. Mortgage is an asset to mortgage lender. Since mortgage lender losses interest as you pay extra or additional over the limitations, the mortgage lender charges penalty to the mortgagor or borrower.

In bi-weekly mortgage payment, the borrower pays off the mortgage every two weeks. This option is the most affordable and convenient way to pay off mortgage sooner from the three options to pay off mortgage early. For the annual lump sum and additional mortgage payment, the borrower needs to come up with larger funds. The borrower makes twelve payments on regular monthly mortgage payment, while the borrower makes twenty six payments on bi-weekly mortgage payment. Since the borrower makes more payment, the borrower put more money to reduce the mortgage. To calculate the bi-weekly mortgage payment, you simply divide the mortgage monthly payment by two. For example, the borrower pays $1,000 monthly mortgage payment. The borrower pays $500 ($1,000 monthly mortgage payment / 2) in bi-weekly mortgage payment. Another example, the borrower took $100,000 principal, 6.5% interest rate, and 30 year mortgage. The borrower pays $316 bi-weekly mortgage payment ($632 monthly mortgage payment / 2) to pay off mortgage early. The borrower saves 5 years and 11 months.

The annual lump sum mortgage payment is one big extra or additional mortgage payment every year. Mortgage lender usually allow up to fifteen percent of the principal amount which is the outstanding balance of the mortgage. For example, the borrower took $100,000 principal, 6.5% interest rate, and 30 year mortgage. The borrower pays $632 monthly mortgage payment. At the anniversary date of the following year, the borrower pays an extra payment of $15,000 ($100,000 x 15%) to pay off mortgage early. The borrower saves 5 years and 7 months.

The additional mortgage payments act like annual lump sum payment. The only difference is the borrower pays additional sum of money on top of regular mortgage payment on regular basis. For example, the borrower took $100,000 principal, 6.5% interest rate, and 30 year mortgage. The borrower pays $632 monthly mortgage payment. At the anniversary date of the following year, the borrower pays an extra payment of $500 on top of $632 monthly mortgage payment for 12 months. So, the borrower pays $1,132 per month. The borrower saves 10 years and 11 months.

Most borrower dreams to fully own the property by paying off mortgage. Without mortgage, the borrower gets personal peace and financial freedom. And, it allows the borrower to save for their retirement. The money goes to savings, or investments instead of mortgage interest.

Which Mortgage Is Right For You?

Your Adjustable Rate Mortgage Is About to Adjust -- So Now What. A wrap-around mortgage is a loan transaction in which the lender assumes responsibility for an existing mortgage. Mortgage is calculated by these factors. A second mortgage is, simply put, an additional loan taken against a property.
Rates
Track interest rates by email to make timely home financing decisions. Rates are not guaranteed until locked in with your loan officer. Compare rates, from mortgages to home equity to CDs, 100 High and more, in just a few simple steps. The rates that lenders and mortgage brokers advertise can be misleading.
Lenders
We have no relationships with any lender, mortgage brokers, bank or any other entity that is in the business of loan origination. It's important to give your lender as much detail as you can about your earnings and outgoings so that you're offered a mortgage you can afford.
Refinance
How long will it take to breakeven on your refinance. Reasons To Refinance Your Home. When you refinance your mortgage, you usually pay off your original mortgage and sign a new loan. These loans are generally the best choice for veterans who are planning to purchase a new home or refinance an existing home mortgage.
A mortgage is a loan secured by real estate. Which mortgage is better for me. A second mortgage is, simply put, an additional loan taken against a property. A mortgage is a long-term loan that uses real estate as collateral. Mortgage is calculated by these factors.

Chicago Mortgage Refinancing – Smart Homeowner Guidebook

Mortgage shopping can be an intimidating process. To find the right mortgage you need to do you homework and shop from a variety of lenders. Doing your homework will help you avoid common mortgage mistakes and paying too much for your mortgage. Here is what you need to know to find the best mortgage for you.

Comparison shopping is the smartest thing you can do in order to make sure you do not overpay for your mortgage. When comparison shopping you need to shop smartly and compare all aspects of the mortgage, not just the interest rate. You must compare all costs including lender fees, down payment, points, and any penalties such as prepayment penalty in order to make a fair assessment of which mortgage is better.

There are a number of mistakes homeowners make while taking out a mortgage. One mistake is not protecting their credit. Your credit rating is an extremely important aspect of your mortgage qualifications. Failing to protect your credit before you apply while you shop for the best lender can cost you thousands of dollars.

To learn more about protecting your credit and strategies to find the best mortgage for your family, register for a free mortgage guidebook.

To get your free mortgage guidebook visit RefiAdvisor.com using the link below.
Louie Latour specializes in showing homeowners how to avoid common mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing - What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.

Mortgage Refinancing: Using a Mortgage Calculator

A mortgage calculator is a useful tool to help you budget for your new mortgage. A good mortgage calculator allows you to calculate your monthly payments based on your desired interest rate, taxes, and insurance. Here is how this useful tool can help you avoid common mistakes when refinancing your mortgage.

Mortgage calculators can provide you valuable information about your mortgage. A good mortgage calculator will show you monthly payment information and amortization tables to help you understand how your mortgage works. Amortization with a mortgage calculator describes the process of paying interest and principle graphically; using a mortgage calculator can help you get your head around a complicated financial concept like amortization.

To use a mortgage calculator you will need to provide the amount of the mortgage principle, your interest rate, the amount of your property taxes, and private mortgage insurance if you pay it. The calculator will figure your payment amount and show how the interest is paid over time. Mortgage loans are front loaded with interest; at the beginning almost all of your payment is pocketed by the mortgage lender for the interest due. As time passes, the ratio of interest to principle gradually reverses and more of your payment goes to pay back the loan.

If you are in the process of refinancing our mortgage a mortgage calculator can help you budget to avoid taking out more mortgage then you can afford. There are dozens of free mortgage calculators available online for you to use; your mortgage lender of choice will probably offer one on their website as well. To learn more about refinancing your mortgage and how to avoid costly mortgage mistakes, register for a free mortgage guidebook using the links below.
To get your free mortgage guidebook visit RefiAdvisor.com using the link below.

Mortgage Lead Generation

The companies handling the mortgage lead generation process need to be very careful and systematic, as this is the most crucial step of the mortgage loan procedure. The mortgage lead generation process involves collecting and compiling mortgage loan applications. The mortgage loan seekers contact online mortgage lead generation companies for loans. They submit their application by filling out a mortgage loan request form. They have to mention all the relevant details to facilitate the search. The completed loan requests are actually the leads. It’s the responsibility of mortgage lead generation companies to verify the authenticity of the leads. The screening is needed to select the genuine leads and get rid of the bogus ones. Mortgage leads are important to the mortgage lending forms. They make profits and expand business by exploiting those leads.

After selecting the best leads, mortgage lead generation companies send them to different mortgage companies. The companies in turn contact the applicants with their current rates and fees. So, mortgage lead generation has to be foolproof. Otherwise the whole process will go wrong. The mortgage lead generation technique has to be detailed. The lead generation companies should find out the type, purpose and the amount of the desired mortgage loan from the applicants. This will make the process more precise. The mortgage lending companies will be able to get more targeted leads.

Leads are not merely a compilation of contact addresses. The mortgage lead generation process should involve research on the background of every mortgage loan request. This way, the lead generation firms will be able to nullify all bad leads and offer only the genuine leads to the mortgage lending companies. mortgage lead generation companies should find the persons who are truly enthusiastic about getting mortgage loans. This is the recipe for a successful mortgage lead generation process.

Mortgage Lending

Mortgage lending has become a thriving business with more and more mortgage borrowers relying on mortgage lending institutions to get loans. The Internet has made comparing and studying different lending institutions easier for the mortgage seekers. Mortgage lending companies can now get in touch with the potential buyers right away. All in all, mortgage lending has become fast-paced. The term ‘mortgage lead’ often appears while discussing mortgage lending. Mortgage lending firms act on the basis of mortgage leads. Mortgage leads are basically mortgaging applications redirected to the mortgage lending companies through mortgage lead generation companies.

If you are a mortgage seeker, all you need to do is check out some leading mortgage lead generation companies on the web and fill out an online application form to let them know the type of mortgage loans you need. After verifying your application, they will send your application to mortgage lending companies. The lending companies will treat your application as a mortgage lead. They will in turn contact you with loan offers. You can then compare all the loan offers to go for the most suitable one. The role of mortgage lending companies assumes greater significance, as they have to come up with customized loan plans to suit the borrowers’ requirements.

Mortgage lending has opened up an opportunity for the loan seekers to go for the best mortgage loan. Builders, real estate professionals and individual homebuyers can utilize the mortgage lending service to realize their dream. As a borrower you can always consult mortgage-lending experts to get better ideas on the recent trend. You should always go for those mortgage-lending institutions that have got the experience and expertise to offer you some fabulous mortgage deals. Mortgage lending requires a focused approach to recognize what borrowers actually want. Mortgage lending companies always look for better lending opportunities.

Balloon Payment Mortgage

A balloon payment mortgage is a fixed-rate non amortized mortgage with a large final payment. Typically, the mortgage matures from five to seven year term. At the end of the term, the borrower pays final payment which is much larger than the regular mortgage payment. Hence, the final payment represents the balloon.

Most balloon payment mortgages are interest only mortgage. The borrower only pays the interest on periodically. So, the principal remains the same. At the end, the borrower pays the substantial principal.

For example, the monthly mortgage payment comes to $3,333.333 on a $200,000 mortgage with 20% annual percentage rate. First, you calculate the total interest which comes to $40,000 ($200,000 x 20%). Then, you divide the total interest with the number of payments on a year. Thus, the monthly mortgage payment comes to $3,333.33 ($40,000 / 12 monthly payments).
The mortgage payments on balloon payment mortgage are commonly based on a thirty year mortgage with a term of five to seven years. It is also easier to qualify for this mortgage. And, the interest rates are much lower than traditional mortgage.

The borrower usually sells the property before the mortgage matures to avoid the final payment. At the end of the term, the borrower needs to pay the final payment. The borrower must sell the property, refinance the mortgage, or convert the mortgage before the end of term.
The borrower can convert balloon payment mortgage into traditional amortized mortgage. In an amortized mortgage, the mortgage payment pays off the principal on each periodic payment.

What Is Capped Mortgage

The capped mortgage is basically an adjustable rate mortgage in which the maximum interest rate is set. Any spike of interest rate over the maximum interest rate will not affect the mortgage repayment. The borrower knows the maximum mortgage payment.When the interest rate takes a dive, the borrower pays a lower monthly mortgage payment or bi-weekly mortgage payment. Using the capped mortgage, the borrower is protected from a spike in interest rate.

This protection on interest rate spike comes with a price. The mortgage lenders will charge a slightly higher interest rate. For example, the current interest rate is 4.5%. The borrower pays 5.0% interest rate.

The main benefit of capped mortgage is peace of mind. The borrower knows exactly how much is the highest mortgage payment. And, the borrower knows that the mortgage payment will not exceed the maximum mortgage payment.

Recently, the mortgage lenders suffered from mortgage meltdown. The interest rate went up high enough that the borrower could not repay the mortgage. There were so many foreclosures. In this instance, the capped mortgage could have been advantageous for the borrower.
The interest rate for capped mortgage is a compromise between the fixed rate and adjustable rate. So, the interest rate will be slightly over the fixed rate.

Annually, the mortgage lenders allow a certain level to pay additional or lump sum amount without paying mortgage penalty. When the borrower pays additional amount or lump sum amount over the certain level to pay off mortgage early, the mortgage lenders charge the mortgage penalty as well.

In most mortgage lenders, the capped mortgage is available mortgage options for buy to let mortgages. The buy to let mortgage is a mortgage in which the borrower purchase the property to rent. The borrower can purchase several property with buy to let mortgages.

Houston Mortgage Brokers

Houston mortgage brokers and loan officers are not only licensed by the state of Texas, but also take ongoing continuing education classes, subscribe to a strict code of ethics and are the best in their field. Obtaining a home loan for your home can be a very confusing process. With so many options it can be stressful. A qualified mortgage broker can guide you through the lending process, provide help and assistance and simplify the process.

Professional licensed mortgage brokers and loan officers include residential real estate finance professionals who are experts at navigating the way through the mortgage lending process. They are able to provide loan products from many lenders. These affordable consultants can save you time and money.

Mortgage brokers have a rigid code of ethics that they are bound to abide by. They include:
a. The Mortgage Broker shall act in accordance with any laws, rules and regulations of the State of Texas and in accordance with the By-laws of the Greater Houston Association of Mortgage Brokers.

b. The Mortgage Broker shall perform his business in a manner reflecting honor and integrity. He shall avoid and report fraudulent and unethical practices to the Association or State Agency charged with regulating the practices of brokers in the State of Texas.

The Mortgage Broker shall abide by generally accepted principles of real estate valuation when reporting to the investor regarding the evaluation of the offered collateral of his loan.
All mortgage brokers are trained professionals and are certified by the United States government and by the National Association of Mortgage Brokers.