Interest Only Home Loans


 by: Gary Talon

When choosing home loans home buyers are presented with a choice of borrowing formats. They can either select repayment home loans or interest only home loans. Repayment home loans involve the home owner making monthly repayments where the amount repaid includes the interest charged for that month AND a small percentage of the capital. Interest only home loans, as their name suggests, involves the home owner making repayments of the interest only each month. The home owner is then required to choose an investment vehicle to build up a lump sum that can be used to pay off the capital in one hit at the end of the home loan term.

Why choose interest only home loans?

Interest only home loans offer several advantages to the homeowner. The most obvious benefit of an interest only home loan is the fact that monthly repayments will be lower than on repayment home loans. This is because the home owner does not pay off any of the capital each month, leaving the home loans debt at exactly the same level at the end of the loan term as it was at the start.

To illustrate this advantage lets take home loans of ?100,000 and set the repayment terms over 25 years at the current standard variable interest rate, which is typically 6.75%. For repayment home loans the borrower would be making interest & capital repayments of around ?700 each month. On an interest only mortgage however the borrower would only have to repay ?562.50 in interest. That's a saving of ?137.50 each month!

If you'd be struggling to meet the monthly costs of repayment home loans because of a low income, but figure that your income will go up in future years then taking out an interest only home loan could be ideal! Additionally, should you choose an interest only mortgage product where early repayment / overpayment of the interest is allowed, if only up to a certain percentage, then as your income builds you will actually increase your chances of paying off your mortgage early. One important point here though; if you do intend to aim for early home loan repayment you'll need to make sure that the investment vehicle you use to pay off the capital grows enough to meet the capital debt in time.

Other advantages of interest only home loans are tied up in the investment vehicle itself. This is because, being an investment, it may grow more strongly than anticipated and leave you with a lump sum even after the capital on the home loan is repaid. However, it is only right to mention that being an investment it could under perform too, and so is no guarantee that it will grow sufficiently to pay off the capital owing on a borrower's home loans.

About The Author

Gary Talon is an established finance writer and is currently working for http://www.cheapest-loans-uk.co.uk/


Mortgage Payments vs Rent Payments

Mortgage Payments vs Rent Payments


 by: Max Hunter

There is an age-old debate on whether or not it makes more sense for people to rent or buy. Though it is hard to really understand why there is a debate at all. You will definitely hear arguments from both camps that appear logical but if you do a little digging you may find that some of the arguments are thin at best.

The simple fact of the matter is you are always better off making a mortgage payment over a rent payment if you can afford to do so. It is not uncommon for mortgage payments to actually be lower than many rent payments are. So the key is to understand an important, fundamental difference between making a rent payment and making a mortgage payment.

Rent payments are made on a monthly basis for the most part. That money gives you the right to live in the house or apartment for the specified period of time, typically one month. You receive no other tangible benefits from that...

Mortgage Payments vs Rent Payments
Mortgage > Mortgage Payments vs Rent Payments

Mortgage Payments vs Rent Payments

Mortgage Payments vs Rent Payments


 by: Max Hunter

There is an age-old debate on whether or not it makes more sense for people to rent or buy. Though it is hard to really understand why there is a debate at all. You will definitely hear arguments from both camps that appear logical but if you do a little digging you may find that some of the arguments are thin at best.

The simple fact of the matter is you are always better off making a mortgage payment over a rent payment if you can afford to do so. It is not uncommon for mortgage payments to actually be lower than many rent payments are. So the key is to understand an important, fundamental difference between making a rent payment and making a mortgage payment.

Rent payments are made on a monthly basis for the most part. That money gives you the right to live in the house or apartment for the specified period of time, typically one month. You receive no other tangible benefits from that...

Mortgage Payments vs Rent Payments
Mortgage > Mortgage Payments vs Rent Payments

Know Your Product Before You Sell it

Know Your Product Before You Sell it


 by: Jay Conners

Product knowledge is by far the most important key ingredient to posses when it comes to selling your product.

Before you sell your product, make sure you know it inside and out, you wouldn?t want to be caught without an answer if your prospect had a specific question.

Think about it, if you were interested in buying a product from someone and they couldn?t answer your simplest of questions about the product, how much faith would you have in it? Probably none.

Here are a few tips on how to get to know your product better:

1. Brochures and Literature

Obtain as much written information as you possibly can on your product. Read up on the features and benefits your product offers until you know them by heart. Keep reading until you can roll every detail off the tip of your tongue including any fee?s associated with the product.

Also, keep your brochures handy, open...

Know Your Product Before You Sell it
Mortgage > Know Your Product Before You Sell it

Avoiding Declines by Repairing Credit

Avoiding Declines by Repairing Credit


 by: Jonathan Cheong

Sorry you are declined?Have you ever heard this before when you went to apply for a loan or a credit card? If you have, this means that your credit files has some negative reports and it is time to clean up your act. Credit files are a report that contains your credit score and history.

Three major companies hold your files and allow others to view them when you apply for a loan, credit report, job, apartment, and so on. If that report or file has negative results you will hear?sorry you are declined. If you are declined then it is time to get started to rebuild your life.

Credit bureaus obtain their information about you from all creditors that has done business with you. If you missed payments, ignored payments, or else simply overlooked payments the reports are sent to TransUnion, Equifax and Experian for review. Once the bureau?s has found negligence against you, your credit...

Avoiding Declines by Repairing Credit
Mortgage > Avoiding Declines by Repairing Credit

Interest Only Home Loans

Interest Only Home Loans


 by: Gary Talon

When choosing home loans home buyers are presented with a choice of borrowing formats. They can either select repayment home loans or interest only home loans. Repayment home loans involve the home owner making monthly repayments where the amount repaid includes the interest charged for that month AND a small percentage of the capital. Interest only home loans, as their name suggests, involves the home owner making repayments of the interest only each month. The home owner is then required to choose an investment vehicle to build up a lump sum that can be used to pay off the capital in one hit at the end of the home loan term.

Why choose interest only home loans?

Interest only home loans offer several advantages to the homeowner. The most obvious benefit of an interest only home loan is the fact that monthly repayments will be lower than on repayment home loans. This is because the home owner does...

Interest Only Home Loans
Mortgage > Interest Only Home Loans

Mortgage Life Insurance & Mortgage Redemption and Cancellation Life Insurance

Mortgage Life Insurance & Mortgage Redemption and Cancellation Life Insurance


 by: Donald Lusan

Mortgage life insurance is one of the most important life insurance policies a person who owns a home can buy. Since the ownership of this home is probably the largest investment for most people it is imperative that your investment be protected in the event of premature death. I want to take some time to discuss alternative plans that can be used to do this.

Mortgage Life Insurance

What really is mortgage life insurance. Mortgage life insurance pays off the balance owed to the bank or mortgage company in case of your premature death. Let us assume you have a $100,000 25 year mortgage on your house. Let us also assume that after 5 years you have a balance owed of $95,000. Incidentally that figure is not as impractical as it sounds. Your principal decreases very slowly in the early years. Back to our discussion; You now believe you should take...

Mortgage Life Insurance & Mortgage Redemption and Cancellation Life Insurance
Mortgage > Mortgage Life Insurance & Mortgage Redemption and Cancellation Life Insurance

Avoiding Declines by Repairing Credit

Avoiding Declines by Repairing Credit


 by: Jonathan Cheong

Sorry you are declined?Have you ever heard this before when you went to apply for a loan or a credit card? If you have, this means that your credit files has some negative reports and it is time to clean up your act. Credit files are a report that contains your credit score and history.

Three major companies hold your files and allow others to view them when you apply for a loan, credit report, job, apartment, and so on. If that report or file has negative results you will hear?sorry you are declined. If you are declined then it is time to get started to rebuild your life.

Credit bureaus obtain their information about you from all creditors that has done business with you. If you missed payments, ignored payments, or else simply overlooked payments the reports are sent to TransUnion, Equifax and Experian for review. Once the bureau?s has found negligence against you, your credit...

Avoiding Declines by Repairing Credit
Mortgage > Avoiding Declines by Repairing Credit

Mortgage Payments vs Rent Payments

Mortgage Payments vs Rent Payments


 by: Max Hunter

There is an age-old debate on whether or not it makes more sense for people to rent or buy. Though it is hard to really understand why there is a debate at all. You will definitely hear arguments from both camps that appear logical but if you do a little digging you may find that some of the arguments are thin at best.

The simple fact of the matter is you are always better off making a mortgage payment over a rent payment if you can afford to do so. It is not uncommon for mortgage payments to actually be lower than many rent payments are. So the key is to understand an important, fundamental difference between making a rent payment and making a mortgage payment.

Rent payments are made on a monthly basis for the most part. That money gives you the right to live in the house or apartment for the specified period of time, typically one month. You receive no other tangible benefits from that...

Mortgage Payments vs Rent Payments
Mortgage > Mortgage Payments vs Rent Payments