Mortgage Deals
Thought You Can Go All Alone with a mortgage
Mortgage Advice Will Be Beneficial In All Important Decisions
A mortgage is easy as long as you understand
it well. But how many borrowers
can be confident of their knowledge of
mortgages.
Mortgage Basic Understanding
With the list of terms and terminologies related to a mortgage growing fast,
it is difficult to keep pace with it. However, the legal maxim goes as
follows – “ignorantia juris non excusat” (ignorance of law is no excuse).
Therefore, it is necessary to be updated in knowledge of a mortgage. This will not require a wide knowledge of mortgages. A basic understanding of
the
mortgage terms
and the impact that every mortgage decision has on the
overall financial condition of the customer will be desirable.
Need for a Mortgage
Once the need for mortgage advice is created, it is easy to get it. There are
various articles on the topic. Newspaper clippings, seminars, online etc. can be
valuable source of information. Friends and relatives who have taken mortgages
too can provide valuable information. These explain the various terms associated
with mortgage deals and as a guide in easy to understand language.The typical young couple, on purchasing a first home, try to buy the most house
possible, given their income. As they then go out to buy furniture, other
household expenses begin to add up: landscaping, insurance, decorating, and the
list goes on. Soon there will be expenses as the family grows and perhaps two
income families will be reduced to one income.
Mortgage example;
A couple could possibly afford a £100,000 mortgage with
an fixed interest rate of 7% and a term of 30 years.
Check out this table to see how the "magic of compound interest" works against
them:
- Mortgage £100,000
Term 30 yrs.
Interest Rate 7%
Monthly Payment £665
Total Interest Paid £139,508
Mortgage advice
Advice to make a mortgage a really smooth ride. Mortgages are easy as long as you understand them well. But how many borrowers
can be confident of their knowledge of mortgages. With the list of terms and terminologies related to mortgages growing vastly, it
is difficult to keep pace with it. However, ignorance of law is no excuse.
Therefore, it is necessary to be updated in the field of mortgages. This will not require a wide knowledge of a mortgage. A basic understanding of
the mortgage terms and the impact that every mortgage decision has on the
overall financial condition of the customer will be desirable
Mortgage Advisors
Whether or not
the advice given is independent still needs to be ascertained. Independence of
the advice is an important criterion by which borrowers rate its value. Some
sources are just selling their mortgage products in the guise of independent
mortgage providers. It is important to stay away from these advisors. They tend
to hide the disadvantages of the products while enumerating its advantages.
Types of Mortgage
One can pay outright the principal and interest through a repayment mortgage, or
can choose to pay only the interest through an interest only mortgage. Few more
terminologies like
fixed rate, variable rate and capped rate creep in when the
decision regarding the way interest is to be charged needs to be decided. Remember that mortgage lenders hold the deeds to the property and during the term of the mortgage. Breeching the agreement by not repaying the loan
can result in the bank repossessing the property and recovering debt by selling it. An
Idea to have a Mortgage Indemnity Guarantee (MIG)
is a guarantee which covers the lender if the borrower defaults, for
which the borrower pays the premium. Usually only applied to
mortgages above 75%
of the value of the property bought
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