| Mortgages and Home Ownership Costs (real estate)
|
| ACS provides free articles on credit counseling, debt consolidation loans and refinance mortgage. |
Mortgages and Home Ownership Costs
[ Bookmark this page! ] [ get HTML Version ]
Bank Foreclosure
Everyday, there are properties that are foreclosed by the banks. This happens when a loan borrower is unable to make up for the payment of his loan. Now having a property foreclosed can be very detrimental on the part of the client.
In as much as possible banks would not want to foreclose properties but it is just that they have vivid rules which have been stipulated in the contracts th... Read real estate article
Real Estate Investment - Invest The Right Way
Real estate investment is going through its best period ever. Many real estate investors are seeking old run down and neglected properties, giving them a face lift and reselling these properties for huge profits.
This type of real estate investment is more the experienced investor rather than a new comer as it requires certain amount of knowledge about finding the right property, redoin... Read real estate article
Mortgages and Home Ownership Costs
All Home Ownership Costs Although the cost of your mortgage is the largest part of your monthly housing expense it is not the only one.
The additional housing expenses include hazard insurance, home ownership association dues, property taxes, and mortgage insurance.
Your hazard insurance is the policy that covers damage to your property.
As long as you have a mortgage the lender will usually want you to have a hazard insurance policy to protect their collateral. If your home is damaged or destroyed the hazard insurance policy should be able to help them get their money back on their loan.
The home ownership association dues are something that some borrowers who live in condominiums or managed communities must pay. These are the costs of maintaining common areas, upkeep of the area such as mowing lawns, etc.
Although your property taxes are usually not due monthly many borrowers opt to include this in their monthly payment to their lender as part of an impound account. You need to figure out what your property tax burden will be when you buy a property. In some states the property tax may not increase but in many areas you run the risk of property taxes increasing over time.
Mortgage insurance is a charge some lenders impose on higher risk loan that are usually more than 80% of the value of a property. This is a charge that they add to the monthly mortgage bill.
It is important to know what your total monthly housing expense will be before you buy your property.
You can use an online mortgage calculator to figure what your monthly mortgage payment will be. Many of these mortgage calculators will allow you to calculate your entire monthly income.
Bookmark this page | Search this site | E-mail to a Friend
Neg Am Calculator
Neg Am Calculator
You can find many free online Neg Am calculators.
You will need to use a minimum payment rate, a loan balance, a loan term, an index value, and the loan margin.
The minimum payment rate is the rate at which the bank will allow you to make a minimum payment.
This minimum payment rate can be as low as 1%, although some lenders have offered minimum payment rates less than this.
The loan balance is the amount of the loan. For this discussion, assume the loan that has the Neg Am or minimum payment option loan is 80% or less of the value of a property.
The loan term on this type of loan is usually 30 years. Newer minimum payment option or cash flow ARMs allow borrowers to get 40 year terms instead. The longer loan term allows the minimum payment amount to be even lower than a comparable 30 year fixed.
The index is the interest rate index the loan is based on. It can be the CODI index, CODI index, LIBOR index, MTA index, or any other number of indexes.
The loan margin is the bank's added rate on top of the interest rate index. It represents the bank's profit margin.
Combine the interest rate index with the margin to get the interest rate on the loan.
The neg am calculator should be able to calculate your minimum payment, interest only payment, 15 year payment, and 30 year payment.
Can you also compare a 30 year loan term with a 40 year loan term.
Note that 40 year loan terms usually have a start rate of at least 1.25% instead of 1%.
Top rated articles for real estate
1. Local Real Estate Values
In some areas of the country it is getting more and more difficult to find values that make sense for investment. Further complicating returns are accelerating taxes and insurance. Laying this all ove... Read real estate article
2. Real Estate Business Investing
Many people today are going into the real estate business. Lots of us seem to be willing to take a risk. But keep in mind that if you are thinking of investing in real-estate, you might as well be gam... Read real estate article
3. Four Popular Real Estate Investing Marketing Tips to Make More in Real Estate
Real estate investing can be a very lucrative career, as well as been highly enjoyable. One of the main skills you need to master is marketing, and part of that is to understand the various types of m... Read real estate article
4. Investment Property = Best Investment
Look in your wallet. The cash you see is not being invested and is not making you more money. That dollar in pocket change will buy you a soda, but soon it's gone and that indicates a temporary value ... Read real estate article
5. Maximize Your Profit in Real Estate
Real estate is an excellent form of investment and there is no way this market is going to disappear. The outlook for real estate investment is bright and is considered to an extremely safe and sure f... Read real estate article
6. Home Sellers - Make More Money by Staging Your Home
We've all seen those television shows where someone comes in, moves a couple pieces of furniture around, and suddenly the seller's home is worth thousands more. Well, it's not as easy as it may look o... Read real estate article
7. Stop Foreclosure Using Private Equity Investments
As more stories come out every day about the sinking housing market and rising interest rates, the amount of homeowners who have missed more than one mortgage payment is increasing by large numbers. I... Read real estate article
8. Home Inspection - Why You Need It
If you are trying to sell your home or if you are in the market for purchasing one, a step you might want or need to take in order to finalize the sale is a home inspection. A home inspection is simpl... Read real estate article
9. Help Buying Or Selling Your Home In The New Market
Since the latter part of 2005, it seems like Real Estate signs are popping up in yards like weeds. As of July 31, 2006 there were 15,743 listings on the market for Pinellas County (9,549 Single Family... Read real estate article
10. Smart Home-Buying - Independent Home Inspectors
Who Needs a Home Inspection Anyway?
Buying a home is one of the most important purchases you will make in your lifetime, so you should be sure that the home (house, condo, townhouse) you wa... Read real estate article
Credit Counseling and Debt consolidation services in Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi,
Mortgages and Home Ownership Costs
Debt consolidation services in Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania,
Debt consolidation services in Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Washington DC, West Virginia, Wisconsin and Wyoming.
Add website or submit URL link of your site to 1000 free directory