Finance, Loan, Debt and Credit.

May 26, 2018

Consolidation Loans – for a Compound Financial Mess

Filed under: Loan — Tags: , , , , , , , — admin @ 12:47 am


The rising cost of living and changing business trends compel many people to take multiple loans. One of the finest examples of a compound financial mess is the latest trend or need of keeping multiple credit cards. For corporate benefits, many global organisations are coming up with affiliated credit cards. Together they offer attractive deals and thus force their clientele to avail those dedicated cards. Such changing trends make it imperative for people to balance their earnings and expenditures, and to pay off their bills cautiously.

We all know that managing multiple debts, keeping track of various pay back schedules and eluding the possibility of missing one or the other repayments, calls for systematic planning. Consolidating loans is one such methodical solution. Consolidation loans enable loan seekers to pay off all their debts in one go. When debts are multiple, paying interests on each loan separately may turn out to be very expensive. So, merging multiple loans into a single loan amount makes sense. It is a kind of a barter system where one trades or swaps multiple loans or payments with a single loan or payment. Consolidation loans too are of secured and unsecured nature.

A secured consolidation loan requires collateral and is best suited for clearing larger debts, as the rate of interest is low with negotiable repayment options

An unsecured consolidation loan, on the other hand, does not require collateral and is best suited for clearing smaller debts, as the rate of interest is high with non-negotiable repayment terms

Irrespective of the type, the success of consolidation depends upon the reduced overall loan price and pay back period as compared to the existing debts. This further depends upon what loan types one is consolidating. For example, consolidation of numerous credit card debts will always prove to be cheaper, as credit cards have high interest rates. But, consolidation of multiple student loans would not be a wise decision, as student loans already have low interest rates.

The benefits of consolidation loans are single loan/payment against multiple loans/payments, reduced monthly payments and interest rates. With the help of these loans, people can get out of debts faster and avoid bankruptcy. Also, it saves the loan seeker from having to deal with multiple lenders. Last but not the least, it saves money too, if availed wisely. So, make good use of it and do not borrow more than the required amount to pay off the existing debts.

The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in Business Administration as a finance specialist. For more information on consolidation debt loans please visit: http://www.adverse-credit-debt-consolidation.co.uk

May 24, 2018

What Your Mortgage Company Should Do for You

Filed under: Mortgage — Tags: , , , , , — admin @ 12:47 pm


Choosing a Mortgage Company

You will potentially be dealing with your mortgage company for the next thirty years, therefore; it is important to choose your mortgage company wisely. The best way to choose a mortgage company is to ask those around you for their experiences. Talk to friends or relatives who have recently purchased a home and ask if they were happy with the service from their mortgage company. By doing this you can begin to build a list of companies that you want to approach.

Real estate agents can also be a good source for mortgage company recommendations. Because they see people working through the financing process daily, they develop a feel for which companies are easy to deal with, and which are not as easy. Although word of mouth is an excellent way to develop a list of potential mortgage companies, it should not be your only method used. Everyone has a different financial situation, and what works for one person may not be the best choice for someone else.

Using the list of mortgage brokers that you have compiled, you can make appointments to go in and personally speak with each one. This will give you a feel for the personality and demeanor of each company. Also, if you have trouble getting your calls returned, or setting up appointments as a prospective customer, it is unlikely that your situation would improve if you had your mortgage through the company.

 

What to Expect from the Mortgage Company

A mortgage company is a service industry. It is important to remember this. Many people find the mortgage approval and home buying process so intimidating that they forget that they should shop for a mortgage company that they are happy with. A mortgage company should be happy to quote you specific interest rates, and let you know when you should lock in these rates. They should also tell you what the specific costs are in acquiring a loan. This means a good faith estimate on closing costs, discount and origination fees that must be paid and any other costs that may be involved when purchasing a home.

The mortgage company should be upfront about all of the technical details of the loan. They should let you know if there is any penalty for pre-payment, the amount of money required for a down payment, and what documents you will need to provide for loan approval. The mortgage company should also let you know what guidelines you must meet to qualify for a loan with them. This will include credit history, your income, employment history, your assets and liabilities and any other specifications they require.

Many states offer specialized home buying programs. The well established home mortgage company should be familiar with the various programs in your state, and provide you with information about these. If you believe that you may qualify for one of these programs, the mortgage company should help you complete any necessary paperwork and determine if you qualify.

The mortgage company should be willing to tell you how long it will take to process the loan, and if they guarantee it will be processed by a certain date. They should also provide you with any information that may slow down the loan processing process, and their method for dealing with problems.

After the Loan Closes

Once you close on your mortgage, you may never see or think of your mortgage company again. You make your monthly payment, and sometime, years down the road, you receive the title to your home. While this happens occasionally, it is not as common as you may think. You may move, and decide to sell your home. Interest rates may drop, making the decision to refinance attractive, or, you may have trouble making your monthly payment due to job loss or medical problems.

Before selling your home, you must know how much you owe on it. Your mortgage broker should be able to determine the balance of the loan and provide you with this information easily. If you decide to refinance, consider staying with the same mortgage company. Often, the mortgage company will negotiate lower closing fees or no closing costs if you refinance through the same company that currently holds your mortgage.

Finally, if catastrophe strikes and you are unable to make your mortgage payment, it is imperative that you get your mortgage company involved early in the process. They can provide you with resources for help in making or delaying payments, and let you know if foreclosure is imminent. As tempting as it is to bury your head in the sand at this time, remaining proactive can help you hand on to your home, or allow you to sell your home before foreclosure proceeding begin.

Brain Jenkins is a freelance writer who writes about topics pertaining to the mortgage industry such as a Pennsylvania Mortgage

Consolidation Loans – a Check List for the Smart Planner

Filed under: Loan — Tags: , , , , , , , , — admin @ 12:47 am


Smart people understand the importance of an equally smart financial history. Therefore, they devise efficient plans in order to make their financial records look impressive. One of their strategies include consolidation loans.

If you too want to have a smart financial history, then read on to find how intelligent people use consolidation loans to turn bad credit history or piling debts into a situation well under control.

When you are searching for some solution to repay all your existing debts, the best method is to take a debt consolidation loan. A debt consolidation loan will provide you the money that will help you repay all your piling debts together.

But before you take a consolidation loan, ask yourself the following:

1.What are the debts that you would like to repay with the consolidation loan you take?

2.How much money would you require to repay all the debts?

3.How many debts are you intending to pay back?

4.What is the APR of the consolidation loans you come across?

5.Did you research on different options available with lenders?

6.Did you search and research online debt consolidation loans?

7.Did you get in touch with at least 6-7 lenders?

8.Which consolidation loan plan meets most of your requirements and also gives you maximum benefits?

9.What is the amount that you have to spend monthly in order to repay the loaned money?

10.Is your monthly income sufficient for repayment of the debt consolidating loan?

11.Did you check for the credibility of the lender you have chosen?

Having checked and cross checked your decision in respect to all the above questions, when you are absolutely sure with the decision you are making, just go ahead and get the consolidation loan.

With the debt consolidating loan, you can put an end to piling debts and APRs and give a new beginning to your credit history and also to your life.

The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in Business Administration as a finance specialist. For more information on debt consolidation secured loans please visit: http://www.adverse-credit-debt-consolidation.co.uk

May 23, 2018

How a Mortgage Loan Credit Scores Determined?

Filed under: Loan — Tags: , , , , , , , , — admin @ 12:47 am

? How you paid your bills in the past gives the lender some indication of how you can be expected to pay them in the future. If you have a record of paying your bills after the due date, this can lower your score. How often you have been late paying your bills, how recently your payments have been late as well as how long you remained delinquent on any bill at one time are important factors.

OUTSTANDING DEBT.

How many consumer loans and open charge accounts do you have? What are the current balances on these accounts? The lender wants to know how much credit you have and how much you have used. Research has shown that the number of credit accounts you have as well as how much of your available credit is used is important.

CREDIT HISTORY. How long have you had credit? Generally, the longer you have had and have successfully managed credit, the higher your credit score. However, people with relatively new credit histories or those with only one or two accounts can obtain high scores as well.

If you have recently established credit or have only a few credit refer¬ences, which does not mean that you cannot get a mortgage. Working with your mortgage lender, you may be able to establish a “nontraditional” credit report that is based on how well you have paid other types of debts, such as rent and utility payments.

CREDIT INQUIRIES. How many times have you authorized a lender to check your credit record? How many new accounts have been opened recently? Every time you apply for credit for an automobile or con¬sumer loan, to open a new charge account, etc. the lender checks your credit history with one of the credit bureaus. This is called an “inquiry” and is recorded in your credit report. Sometimes, having many inquiries within a recent period on your file indicates that your credit usage may be increasing and creates an additional level of risk for the lender. However, don’t worry that checking with several lenders about a mortgage loan will have a negative effect on your credit score. The credit report data used to calculate credit scores does not include auto or mortgage loan inquiries that occur in the 30-day period prior to the score being calculated, and auto and mortgage inquiries that occur in any 14-day period are always considered one inquiry.

TYPES OF CREDIT. What types of credit do you have in use? Do you have a mixture of types of credit, such as credit cards, personal loans, etc.?

Your credit score is calculated based on your history in these and other areas. Having established credit, paying your bills on time, and keeping the balances on open accounts to moderate levels will help ensure that you have a strong credit history and a good score.

Are credit scores discriminatory? No. Credit scoring is an objective process, based only on the infor¬mation in your credit report. Factors such as age, race, religion, gender, national origin, marital status, income, employment, and where you live are not considered in determining your credit score. Credit scoring is a bias-free tool that helps lenders evaluate the likelihood that you will repay the loan based on how you have managed debt in the past. Because credit scoring evaluates the information in credit reports in the same objective manner, one borrower is just as likely as another to have a high credit score.

What’s my score? Is that good or bad? Credit scores typically used in mortgage lending range from approxi¬mately 300 to 900. Generally, the higher your credit score, the less risk of future default you represent to the lender. This is a strong indica¬tion that you have successfully managed credit in the past and are likely to repay a mortgage loan.

Keep in mind that your credit score is only one factor that the lender uses to evaluate your mortgage loan application and that the final decision whether or not to approve your mortgage loan is made by the lender after careful analysis of all of the information the lender has collected.

Can my score be improved? The answer is, over time, certainly. But it may be difficult to immediately “fix” your credit score. The most effective way to make sure that you have the best possible credit score is to manage the credit you already have in a responsible manner. You can do this by following two simple rules.

1. Avoid becoming delinquent on any of your credit obligations (credit cards, automobile loans, or other installment loans).

Consumers occasionally miss a payment on one of their bills. This can happen for any number of reasons. Isolated situations like these, although they should be avoided and will have some effect on your credit score, should not have an effect on your ability to get new credit.

A mortgage foreclosure on your credit report will have a major effect on your credit score and your ability to get new credit in the future.

2. Avoid overuse of your credit cards and other credit accounts.

Just as it is important for you to pay your bills on time, it is also important that you control how much money you owe, especially on your credit cards. Lenders are increasingly concerned about the credit risk of consumers who seem to overextend themselves by using most or all of their available credit even if these consumers are still making payments on time.

Why would the lender need to be concerned if you still are making your payments on time? In recent years, there have been many news accounts of people in financial difficulty because they have used their credit cards up to their maximum limits and then struggled to make their monthly payments. For some consumers in this situation, the burden of these monthly payments becomes so great that they stop making payments altogether. Some file bankruptcy. This can happen to people who have never before missed a payment.

So, while you may think everything is fine no matter how much you charge, as long as you can pay your monthly bills on time, the fact is that you are actually a higher credit risk than those that manage their credit accounts more conservatively.

Credit scores are developed by looking at the way millions of consumers manage their credit and are able to identify consumers who are becoming overextended, before they become delinquent. This risk is reflected in the credit scores of those consumers.

Myself webmaster of www.castlemortgagegroup.com dealing in all type of mortgage loans in Florida, Georgia & Alabama with home equity loans, Florida Home Loans, refinance loans, constructions loans.

For More Article Visit :: http://www.thearticleinsiders.com/

May 21, 2018

Benefits of Non-profit Debt Consolidation Services

Filed under: Debt — Tags: , , , , , , , , — admin @ 12:46 am


You can find two kinds of debt consolidation services; profit debt consolidation and non profit debt consolidation. The best place you can go is for a debt consolidation company to get rid of your debt. Non profit debt consolidation is a type of debt management program that exists for restructuring debts with high interest rates into a single loan avoiding the need for going to another loan. Thus, you can avoid many monthly payments and it also helps you have control of your financial state. As profit debt consolidation agencies charge higher rates, the best alternative is to go for Non profit debt consolidation service.

Cash loans, bank loans, IRS, credit card bills, student loans and medical bills are some of the debts that need non-profit debt consolidation solutions. If you are sure to make your regular repayments, debt consolidation mortgage is the alternative among other available options. They are offered against collaterals such as home or any other asset of value and are also tax deductible. Another option for debt consolidation is Consumer debt consolidation. On behalf of borrowers, the consumer debt management companies in this case negotiate with creditors for a consolidated payment at lower interest rates.

The non-profit debt consolidation company receives a share of amount paid by the debtor to the agency and this share is the main supporting source for the non-profit group and on the other hand the profit debt consolidation company does not receive this share. Even otherwise, this share percentage has dropped considerably and there is not much of difference between the two types. Alternatively the debtor is provided with the same monthly payment that are minimum with reduced interest rate whether it is a for-profit or a non-profit debt consolidation company.

You have a better edge over others when you go for a non-profit debt consolidation company. You can find a number of debt consolidation companies today. Therefore you have to plan for an extensive research prior to deciding a debt consolidation company. By all means, the safest way is to choose a non-profit debt consolidation company. A non-profit debt consolidation company guides you with the best possible options for debt consolidation and makes you debt free as soon as possible. Unlike a profit making debt Consolidation company, the motive of a non-profit debt consolidation is not to build personal profit at borrower’s expenses.

A great advantage you get with a non-profit debt consolidation company is free debt counseling. This service helps you to be aware of the debt consolidation techniques and the value of finance and debt management. The main purpose is to avoid such debt situations in future and also for rebuilding your credit rating. Thus, choosing a non-profit debt consolidation company is an excellent move. However ensure that your company is really a non-profit organization.

Internet is one of the best sources of getting information about the debt consolidation companies and you can also choose the best company. You can find many non-profit debt consolidation companies that offer different debt consolidation services. You can check out the websites of the respective companies. Ensure that the chosen debt consolidation company can meet the total financial requirements related with your debts. After short-listing a few companies, you can visit various web forums, blogs and reviews on such companies so that chances of any fraud can be avoided.

Visit http://www.cashguru.info for a complete understanding of several debt consolidation methods. Also, check out http://www.debteraserzone.com to find out which credit card will suit your needs well and how to manage credit card debts in a better way.

May 19, 2018

Does Credit Card Debt Settlement Affect Your Credit Score?


Debt settlement involves paying a small percentage of the original credit card balance instead of the full amount. Numerous debt reduction companies are offering these services today.

Consumers should expect their credit ratings to be negatively affected as a result of debt settlement, since credit card companies will not report a current status until the debt is paid in full.

Hector Milla Editor of the “Get Rid Of Credit Card Debt” website — http://www.GetRidOfCreditCardDebts.net — pointed out;

“…While everyone’s credit will be negatively affected, the fallout will be different depending on current financial circumstances. For example, if the consumer is already late on all or most of their credit card payments, and especially if they are more than 90 days past due, then debt settlement won’t cause the credit score to dip much further. On the other hand, if all accounts are current, going the debt negotiations route will cause the credit report to take a major nose dive…”

Creditors are willing to settle with consumers who are behind on their payments because of the risk of bankruptcy. A creditor will not negotiate for a lesser balance when the account is current, since there is no reason to believe that the consumer is in financial trouble. On the other hand, if the account has been past due for at least a few months, red flags fly up, and the creditor begins to consider their options. In many cases, negotiations are successful in these cases, since receiving part of the money is better than none at all.

Debt negotiation firms collect monthly payments for a period of three to six billing cycles. Then, a settlement representative will attempt to negotiate a lower balance with each creditor in order to pay the account in full.

During this period of time, the consumer is not making any payments to any of their accounts, and therefore collection efforts will continue. In some rare cases, consumers may find themselves being sued by their creditors despite debt negotiation efforts. In most situations, however, debt collection efforts will consist of regular, and perhaps persistent, phone calls.

Since the creditors are not being paid anything at all, they will quickly make negative reports to all three of the major credit bureaus. Credit scores, which were once in the good to average category, will quickly tumble to an all-time low. These reports will not change until negotiations occur, and the agreed lower balance is satisfied.

“…Even when the account is paid, the credit bureau report will not reflect “paid as agreed” or “paid in full.” Rather, accounts will be listed as paid, but through a debt settlement agreement. Few creditors are willing to extend credit to customers who can’t, or won’t, pay their balances as agreed…” H. Milla added.

Further information about trusted and reputable companies for credit card debt settlement by visiting; http://www.GetRidOfCreditCardDebts.net

Hector Milla runs his corporate website at http://www.OpsRegs.com where you can see all his articles and press releases.

May 18, 2018

Mortgages Rules For Canadian Home Buyers to Be Tightened

Filed under: Mortgage — Tags: , , , , , , , , , — admin @ 12:48 am


On July 9th, the Department of Finance moved to tighten Canada’s mortgages markets by announcing changes to the requirements for federally-backed mortgage insurance. The changes set minimum credit scores that home purchasers must meet to qualify for mortgage insurance on so-called ‘high-ratio mortgages” while restricting amortization terms to 35 years and requiring a minimum 5% down payment on mortgages insured through the Canadian Mortgage and Housing Corporation (CMHC) or other government-backed private mortgage insurers.
The tightening of Canada’s mortgage insurance rules, which will take effect on October 15th, is widely seen as a measure to further tighten Canadian mortgages market and forestall the credit problems that have crippled the U.S housing market. In announcing the changes, the Department of Finance characterized them as “a responsible and measured approach by the government to ensure Canada’s housing market remains strong and to reduce the risk of a U. S.-style housing bubble developing in Canada.”
Under the Bank Act, mortgages from federally-regulated lenders, including banks, credit unions, and caisses depots, must be insured where the value of the mortgage exceeds 80% of the value of the property or home being purchased or financed. Such high-ratio mortgages are insured primarily through the Canadian Mortgage and Housing Corporation, a federal Crown Corporation, but also through a handful of private mortgage insurers – Genworth Financial Canada, AIG and PMI Mortgage Insurance. The federal government guarantees the obligations of these mortgage insurers to lenders in the event of their not covering the costs of defaulted mortgages.
Effective October 15th, new federal rules will require that the loan-to-value ratios for federally-backed mortgages not exceed 95%, that amortization periods not exceed 35 years and that prospective borrowers have a minimum credit score of 620 and a debt service ratio (the percentage of income that goes to servicing existing debts and housing costs) of no more than 45%. The new rules will also require evidence of the reasonableness of the mortgaged property’s value and of the borrower’s source and level of income.
The new rule changes come at a time when Canadian real estate markets are already cooling off. Growth in housing prices showed a very moderate 1.1% year-over-year gain in May, according to the latest numbers from the Canadian Real Estate Association, as Canadian markets and consumer expectations have adjusted in response to the constant barrage of bad news about the worst U.S. housing market slump since the Great Depression and sobering forecasts about the state of a Canadian economy that is coming to grips with escalating energy and commodity prices.
The tightening of amortization periods and loan-to-value ratios will likely have a further dampening effect on Canadian housing markets, which already have sharply increased levels of resale and new home listings. However, this dampening effect may not be felt until after October 15th when the new rules come into effect. In the short term, the move to tighten mortgage lending standards could have the opposite effect – providing an impetus for Canadians to take the plunge into highly leveraged, no-money-down mortgages before the October 15th deadline.
(An October 15th implementation date was chosen to give home purchasers with mortgage pre-approvals the opportunity to exercise their options before the pre-approvals expire at the end of their usual 90-day term. Note, also, that the mortgages of existing home owners with high-ratio mortgages, amortization periods in excess of 35 years and substandard credit scores will be grandfathered under the new rules so that they will not be precluded from obtaining mortgage insurance when it comes time to refinance their homes.)
Industry feelings have been mixed about this latest move to ensure the solidity of Canada’s mortgages and housing markets. Most industry analysts applaud the move to ensure that Canadian home purchasers do not get sucked into the same speculative frenzy that fueled the meltdown of U.S housing prices when the sub-prime mortgage market unraveled. Other analysts seem to be expressing the view that this is a case of too-little-too-late or mere window dressing.
Derek Holt, Scotiabank’s vice president of economics, acknowledged that mortgage lending rules had been “modestly tightened” but noted that, “The changes are more about optics.” Meanwhile, a more pessimistic analysis came from BMO Nesbitt Burn’s deputy chief economist, who observed that the rule change is “a bit like closing the barn door after the horse has already run down the road.”
Canada’s mortgages and housing markets have not experienced the wild speculative bubble that erupted and burst south of our border, largely due to much more conservative lending practices here at home. Canadians were not privy to such innovative and speculative mortgage products as the so-called NINJA mortgages (“no income, no job, no assets), where borrowers could qualify for mortgages without adequate proof of income or employment that would enable then to afford the requisite mortgage payments, and only a small percentage of Canadians took out the sub-prime mortgages that scuppered U.S. markets. As a result, the percentage of Canadian mortgages in arrears are at the lowest levels – 0.27 per cent – they have been at since 1990, whereas Americans are facing mortgage foreclosures at a rate not seen since the Great Depression. This tightening of Canada’s mortgage insurance rules seem to be largely a pre-emptive move to reassure Canadian markets and ensure that Canadian home buyers do not go down the same path trodden by snake-bitten home buyers south of the border.

For more information on mortgages visit http://www.CanadianMortgagesInc.ca or call 1-888-465-1432 to speak with one of our experience broker agents.

May 17, 2018

Debt Consolidation Loans- Let yourself Free

Filed under: Loan — Tags: , , , , , , , — admin @ 12:46 pm


Tired of multiple debts? Want to get rid of frequent defaults and arrears on your repayment accounts? Apply for a debt consolidation loan that will not only help you to clear your existing credit cards, store cards, loans and other debts but replace them into a single monthly payment. An added advantage is that you save pounds every month by paying lower monthly installment and gaining control over your finances. By hunting extensively and shopping around in the market, one can get a competitive deal with lower interest rates on debt consolidation loans.

Do you need a debt consolidation loan?

Don’t go for a debt consolidation loan without a proper reason. You may end up multiplying your debts instead of cutting them down. Recent survey by Consumer Credit Counselling Services (CCCS) states that borrowers are constantly pressurised by the banks to make payments for their running debts, even when they are unable to afford them. And in such cases banks make use of debt consolidation loans as a tool to lure debtors. Instead of blindly going for such a loan deal, ask yourself the following questions.

* Are you paying just the minimum amount on your credit card every month?

* Is the amount you owe on your credit card rises every month?

* Do you put off paying bills until the final reminder?

* Have you missed one or more mortgage, loan or card payments?

* Are you finding it difficult to repay your multiple debts?

If you have answered yes to any one or more questions, you need debt consolidation loans to help you out. The most satisfactory thing that these loans earn you is mental peace and comfort. Let us have a look at the other advantages of consolidation Loans. They are cited below.

* You save money on interest rate

* You make one repayment in stead of several

* You make smaller monthly payments

* You avoid confusion and manage your debts

* You can remake or build your credit record

* You get relieved of pressure from varied creditors

So, go for debt consolidation loans when you are unable to manage your multiple debts easily. Paying to a single lender is always better than paying to some odd three or more.

The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his Master in Business Administration and is currently assisting Easy-debt-consolidation-loan as a finance specialist.


For more information please visit: http://www.easy-debt-consolidation-loan.co.uk

May 16, 2018

Do Know the Exact Mechanism of Mortgage – Learn Now

Filed under: Mortgage — Tags: , , , , , , , , , — admin @ 12:47 am


Mortgage is a mechanism under which real estate is used as a security or collateral by the lender. Mortgage in itself is not loan, but it security for the loan that lender makes available to the borrower. In other words we can say mortgage acts as an evidence of debt of the borrower.

Mortgage may be classified into two broad categories, namely

In the residential mortgage, residential property or house of the borrower is used as security for the loan by the lender. In case of commercial mortgage real estate other than house or residential property is used as security for securing loan from the lender. Commercial mortgage is used for securing real estate for office, factory, storage etc.

Commercial mortgage is also used by businesses to secure money for

Compared to home or residential mortgage commercial mortgage is much more complex. This complexity arises because of liability and credit worthiness of the business in case of commercial mortgage.

Usually there is difference in the rate of interest for residential and commercial mortgage. Because of higher risks involved in commercial mortgage, their interest rates are appreciably higher compared to those of residential mortgage.

Besides these two broad categories, rate of mortgage play significant role. Based on the rate of interest, mortgage may be classified as

In case of interest only mortgage, borrower’s schedule payment consists of only interest on the mortgage. Usually this type of mortgage is available for fixed term of 5 to 7 years. After the fixed term is over borrower has to pay for principaIn case of fixed rate mortgage, rate of interest remains same through out the term of the loan. Borrower will pay same amount as monthly installment through out the tenor of the loan.

In case of adjustable rate mortgages you may be able to find lower initial interest rate than the prevailing market rates. In this type of mortgage interest rate of the mortgage are linked to certain market indices and fluctuate according to market.

In case of balloon mortgages, loans are of short duration and interest rates are fixed. Monthly installments are also fixed in this type of mortgage. Borrower usually gets lower interest rate compared to prevailing market rate for these mortgages.

Balloon mortgage is usually 2 term process. In the first term, borrower pays fixed monthly installments. In the second term borrower make a single payment for the full amount of the mortgage.

In case of reverse mortgage, borrower gets money from the lender. This type of mortgage is usually available for senior citizens.

When you plan to buy a house or commercial property, you must enquire about the best and lowest mortgage rates. Find answers to all your quarries online. Make choice of mortgage and realize your commercial or residential dream.

Visit the links to learn more on lowest mortgage rates, home loans or Refinance Rates. Evaluate your eligibility online. See their Mortgage Rates August 2008 report as well.

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