What are the different types of Mortgage Loans available?

A mortgage is a secured loan that can help you purchase your dream house without immediately paying for it from your own resources. The property you purchase is used as the collateral to guarantee repayment of the loan. The following are some the types of mortgage loans that lenders may offer you:

• Fixed-rate mortgages: A fixed-rate mortgage is a loan where the set interest rate and monthly payments remain the same throughout the term of the loan. Generally these loans are offered by lenders for a period of 15 years or 30 years. Fixed rate loans are very affordable when the interest rates are low and you can obtain it for a long term without worrying about how market interest rates perform.

• Adjustable-rate mortgages: Adjustable-rate loans are different from fixed-rate loans. Unlike the fixed-rate loans, the monthly payments and interest rate varies in line with fluctuation in market rates. The rate of interest on adjustable-rate loans remain fixed for an initial period that may vary from 1 month to 10 years, and then change. These loans generally start with lower monthly payments than fixed-rate loans but may increase with rise in market interest rates.

• Jumbo mortgage: A jumbo mortgage is a loan amount exceeding the conventional conforming loan limits set by the two government-sponsored chattered corporations: Fannie Mae and Freddie Mac. This loan provides you an opportunity to buy a more expensive property. But the rate of interest is much higher than conforming loans.

• Two-step mortgage: These home loans combine elements of both fixed-rate and adjustable-rate loans. The interest rate and monthly payments are fixed for an initial period followed by one adjustment, then again a fixed interest rate and payment for the remainder of the loan term. These loans have names such as 2/28, 5/25 or 7/23.You can obtain this home loan even if you have a lower credit score.

Each of the mortgages has its own pros and cons. Before purchasing your house, you should have a sound understanding of the various types of home loans available.

Read more

Mylot

myLot User Profile

Read more

Self Improvement Tips Through Personal Financial Planning

Every year in any given country there is a very important calendar occasion. This is the reading of the budget. This is basically the government financial plan based on revenues collected and makes a budget for the different ministries according to their needs. Many view this as boring and of no value to them. This is in fact the most sensitive matter as it touches on our personal finances.

On a more personal level, each one of us should have such a financial plan each and every month when we receive our pay checks, Click Here!. Instead, something contrary to that happens. We go on a spending spree totally disregarding the repercussions.

· Bad financial habits

When you get your pay check you immediately get your friends and go out partying, drinks on you so as to impress your friends.

· Buying things on impulse

However nice something may appear to be, be it a posh car, luxurious house, high end phone if you have not budgeted for it do not buy it on impulse.

· Living beyond your means

No matter what you do the golden rule in financial planning is never to live beyond your means. This is a sure way to attract never ending debts and getting trapped in the vicious cycle of poverty.

FINANCIAL ADVICE:

· The way to get out of the financial quagmire is to start saving the soonest time possible. Financial planning experts advise that you should have the equivalent of six month salary in savings on an emergency account. That basically means that if your employer were to delay your salary by six months you would go on with life as if nothing was wrong. Even though accumulating this tidy sum is a bit tough, it is worthwhile at the end of the day.

· Income generating projects

It is advisable to start some income generating projects like farming, starting a business store or investing in real estate. This however should not interfere with your main source of livelihood

·

Budget

Make a spending plan based on priority. For instance paying for the house, food and school fees should take first priority whereas entertainment should come last.

Visit the links below to learn valuable tips on Achieving Financial Freedom:

1. Common Sense Debt Secrets - Your First Step To Financial Freedom: Seeking The Truth Within The Finance Industry? Common Sense Means The 'Collective Wisdom.' We Share That Wisdom By Helping People Discover Simple Common Sense Secrets To Getting Out Of Debt. You Can Have More Money And Feel Great About Yourself! Click Here!

2. The 5-Day Financial Cure: What If I Could Show You A Real Plan To Take Control Of Your Money And Find The Peace Of Mind You've Been Looking For In Just 5 Days... Would You Be Interested? Click Here!

3. Money Beyond Belief By Dr. Joe Vitale And Brad Yates: Joe Vitale - Brad Yates - Teleseminar Recordings Helping Participants Achieve Money Freedom - Freedom From Limiting Financial Beliefs Using Eft - Emotional Freedom Technique. Very Well Received Program. Click Here!

Read more

Ten Proven Commandments In Personal Financial Management And Acheiving Personal Financial Freedom

To achieve financial independence you need to be cautious on how you spend your money and also check where you invest. Do not be deceived by people who tell you that it is all by luck, nothing comes easy. I have come to learn that first you need to work hard, you start working smart when you have made money.

My reason for saying this is because when you are starting something you are usually all alone, and once the money begins coming in you then delegate.

Here are some financial management tips to follow and attain financial independence:

(1) Do not spend more than your income- to be able to cut down on expenditure, one must be able to differentiate between a need and a want, a need is what you cannot do without, but you can do without a want. Work towards limiting your expenditure to the things that you only need.

(2) You must always have a spending plan or a budget- it is advisable to list all your fixed monthly expenses such as, mortgage, loan, fuel, rent, food and so on. Whatever remains after spending should be put into savings pool or account. A budget should be drawn in such a way that the expenditure does not exceed the income, Click Here!.

(3) Make sure you invest your money- after accumulating savings, do not put all your money in a bank where it does nothing for you. Allow your money to work for you by investing it in stocks or unit trusts where it will make more money and this way you will generate wealth.

(4) One must be able to outsmart inflation- apart from the rising prices of commodities the world over; inflation also comes with devastating effects on long-term investments especially those that have low rates of return. Invest in equities, for example real estate appreciates in value over a period of time.

(5) Do not ‘commit’ impulse buying- financial planning is about sticking to your spending plan. Avoid overspending in the name for keeping up with what your peers have or are doing. When it comes to money and spending, always let your logical side make decisions and not your emotional side.

(6) Avoid living without some emergency finances readily available for a rainy day- it is advisable to have at least six times the cash you spend on your fixed monthly bills. This money can come in handy and help you cope when you suddenly lose your job or something like an illness gets to you, this will at least hold you up before you can figure out how to solve the situation.

(7) Work at improving your skills and qualification- this will help you get promoted to a higher position and hence increasing your financial income. You can also commercialize your hobby in order to earn extra revenue.

(8) Minimize your ATM withdrawals- you can limit yourself to a maximum of two times a month. With a well drawn budget, you will know how much cash you require, and you should stick to withdrawing only what is stated on your budget that so that you avoid going for advances or loans because your money has run out before your next pay cheque.

(9) Never borrow unless it very necessary- refrain from taking a loan just because it is readily available. If you should take a loan, have a good financial plan of where to invest it. Make sure you invest in things that will appreciate and generate income for you.

(10) Learn to gauge yourself on how financially independent you are- instead of comparing yourself with your friends and what they have that you don’t, gauge yourself according to your personal abilities and current financial situation thus you will achieve financial freedom.

Click the links below to harness more strategic step to living a successful financial lifestyle.

1. My Miracle Loans: You May Be Able To Borrow up to $100,000 dollars Using the Methods we Teach You in this a MUST Have MIRACLE E-Book! Some Can Borrow With No Credit Check, No Collateral, No Proof Of Income, No Interest Fees, And Absolutely No Turn downs ..... 100% Pain Free ! Click Here!

2. Bad Credit Loan Sources: Bad Credit? No Credit? No Problem! Guaranteed Approval Loans Are Available Up To $25,000. Click Here!

3. CREDIT SECRETS BIBLE: Regardless of your current credit situation, we’ll show you how it’s possible to delete negative items off your credit report, fill your wallet full of credit cards and build a credit score so high even your banker will be impressed! Click Here!

Read more

Personal Finance Tips That Ensure You Generate Wealth And Achieve Financial Freedom

It is good to love yourself and do things that make you happy once in awhile, but do not over do it and forget about tomorrow. To achieve success in your financial life, you must be able to do the things that you ought to do whether you like it or not. Sacrifice and discipline are two things that are crucial in generating wealth and keeping it. Without these two, it is impossible to accomplish, acquire and accumulate anything.

The ability to deny or delay pleasure is an attribute that must be attained on the road towards generating wealth; and this requires a lot of discipline. Discipline is being able to say no when you need to, and doing the things you sometimes do not feel like doing but you must in order to secure your financial life. Most of us have a problem of controlling our spending. The truth is that if you cannot control your spending, no matter how much money you make it will never be enough.

It is normal for people to want or desire more no matter how much income they generate. One must be able to say no impulsive buying and stick to their financial plan. Once you are able to do this, then the next step is to save money thus with time attain financial freedom.

Financial discipline and delayed gratification can be achieved through a system of rewards and punishments to yourself. Set a price for indulging yourself and a reward for resisting the temptation of overspending, this is the path towards financial improvement. You can also reward yourself after completing something that needed to be done.

It is also advisable to have an accountability partner. Just the simple human desire to appear competent to someone else is enough to control your spending, especially when you know that you will supersede your monthly budget. In addition this will guarantee you financial security in the long run.

Follow the links below to learn more on how to live a Debt Free Life:

1. Eliminate Debt Fast Without Bankruptcy Or Debt Consolidation: To Learn The Amazing Secrets Of How I Got Rid Of $63,000 Of Debt In Only 4 Months Without Filing Bankruptcy Or Using Any Type Of Debt Consolidation Service! Click Here!

2. 37 Days To Clean Debts (#1 Credit Repair Product): A Formula For FAST Credit Repair... That Can Rebuild Your Credit In Just 37 Days... It’s Your Easy To Follow Roadmap To Better Credit... Click Here!

Read more

Transforming Strategy Into Action And Achieving Personal Growth

The difference between the people who succeed in life and those who are yet to succeed is the way they implement their strategies. The way you attend to your day to day planning and whether you are able to stick to your plan, will determine the time you will take to get to the top and achieve personal development.

Having said this, I want also to add that having a strategy is not enough; one must act on that strategy. This is where most of us get lost because personal planning is easy, setting goals is not that hard but having the stamina of acting on the set goals is where the problem lies.

As much as it is important to make plans, it is more important to note that one must be able to sustain the energy that was there when making the strategy and when implementing it. One must be ready and willing to work harder and give all it takes in order to realize your set goals.

In order to attain personal development, one has to be an excellent time manager. Every minute you waste widens the gap between you and success. Time is money, time is precious, and time is a maker if you keep it and a breaker if you waste it.

For instance, if you plan to cut down on your expenditure and save more, start immediately. If you have a personal strategy of starting a business or investing in some stocks or unit trusts, do not postpone anymore, act now! Not tomorrow, not next month or next time, start now.

It is time we wake up and transform our dreams and set goals into reality. Do not fold your hands and wait until the day when you will have money or until someone else will come help you. Get into action with whatever little you have. A little anything is better than nothing. Do not despise the days of small beginnings, even the longest journeys start with a single step!

Read more