Posts Tagged ‘mortgage overpayment calculator’

The Greatest Investment Ideas Are The Simplest So Here’s What To Look Out For

Thursday, August 27th, 2009

Do you realise the best investment ideas can usually be the simplest? One of the secrets though is knowing where to go for the lowest risk but with the best return.

Try and disregard the current property downturn as historically house prices do increase quite dramatically over the years. So turn a simple property related investment into an investment idea for you.

A good property investment relies on the old saying location, location, location. Some things never change and certainly location is the number one factor to consider.

Here in the UK house prices double every 10 years historically so you can make the most of your money by getting into the property market. Great investment ideas are usually the simplest and property is one of the simplest, and best.

A quick example of a property investment, keeping figures simple. Invest in a house for 150k and keep it for ten years. It should be now worth circa 300k.

If (in the above example) buying on a mortgage you should shop around for the best deals as even a little saving on your mortgage rate could mean a big cash saving. It’s always a great idea to have some cash at hand in case another great investment idea comes along.

**A bit off topic but you can discover how to shave years off your own mortgage with our mortgage overpayment calculator**

OK, back to the article now.

Searching for a good mortgage can be time consuming but worth it in the long run if your investment idea is to be profitable. With property investment ideas a mortgage forms an important part of future profits.

A lot of fledgling investors get caught out by the rises and falls of the property market. They buy in the peak then panic and hope to sell in the trough. This is a guaranteed way to lose money and confidence.

If simple equals best then you need a simple system to profit from any investment ideas you have. If property is to be your medium then the formula has to be, wait for a trough, establish an affordable good location, obtain a good mortgage, get a good management team in to secure regular premium rentals.

The best ideas are usually the simplest, with the wheel being one of the simplest and best. Don’t get caught up in a myriad of detail while searching for investment ideas. Keep it simple! Click the following link for great investment ideas.

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Now Is The Time To Get A Fixed Rate Mortgage

Friday, June 26th, 2009

We’ll discover what the fixed rate mortgage is, and its benefits.
We will also look into how a mortgage overpayment calculator might save you lots of cash.
With the fixed rate mortgage comes security. With the mortgage overpayment calculator comes potential savings.

A fixed rate mortgage is one of the various types available.
Usually for a period of several years, you get a fixed rate of interest.
The interest rate you pay is locked; therefore your monthly payments are also locked.

Are there any benefits to a fixed rate mortgage?
You benefit by not having the yo-yo effect on your monthly payments. They stay the same every month.
You can estimate your outgoings easier knowing your monthly payment is fixed.

Bank base rates may rise drastically, however yours will be the same because it’s fixed.
In our recent history there have been some frightening short term interest rate rises.
People on variable rate mortgages are much more likely to be affected by rapid rises in interest rates.

A fixed rate mortgage could be a mistake for you under certain circumstances.
If you think you may move home, or even have another child and need an extra bedroom, then think carefully before taking a fixed rate mortgage.
In situations like these you may need to redeem the mortgage and pay a hefty redemption penalty on the fixed rate mortgage.

Fixed rate mortgages usually come with charges called redemption penalties.
At a time when you least need it, you could get hit with a redemption penalty.
You must think twice before agreeing to a fixed rate deal if a charge like this will badly affect you.

It’s worth thinking about paying a bit extra each month in addition to whatever you normally pay.
You may not realise but you can pay any amount over the minimum monthly payment.
You lender will not tell you it’s possible to pay extra as they prefer you just pay the minimum.

What are the up sides to paying extra each and every month?
If you consistently pay extra in the early years of your agreement you can knock several years off the length.
Not only do you save years but you save piles of cash, usually many thousands.

How do you use a mortgage overpayment calculator?
You enter your mortgage details. The amount borrowed, the length, the interest rate etc.
You can put various amounts in as the overpayment. Feel free to play around with this figure.

The calculator will then tell you how many years you might reduce your mortgage by.
You get to see how much money you could possibly save.
Both the years and cash saved obviously increase if you put in a higher overpayment figure.

You may be surprised at some of the savings you can make.
If you borrowed a hundred thousand at five percent over twenty five years.
If you pay an extra fifty each month, you can shave more than 3 years off the length and save 12,000 in interest payments.

If you can afford to pay 100 extra instead of 50 what would happen?
Using the same figures in the mortgage but substituting 100 extra for the previous 50 extra.
You can knock a staggering 6 years or more off the length and save yourself in the region of 20 thousand.

Another plus point is the years you knock off are totally payment free.
Being mortgage free a few years early could easily be achieved by paying a bit extra now.
You won’t hear this info from any lenders though. You need to discover info like this for yourself.

In our example where we saved six years off the length with a hundred a month overpayment.
We could save a further 40 thousand by not having to pay your lender every month.
You can do what you like with this extra as it never needs to be paid to your lender.

To recap we had a look at what benefit a fixed rate mortgage has for you.
You get to sleep easy in the knowledge your payment will stay the same month after month.
We also looked at potential savings by paying extra each month. Every little helps.

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Not As Good As Sex But Worth Giving A Fixed Rate Mortgage A Try

Thursday, June 25th, 2009

We are going to investigate what a fixed rate mortgage can do for you.
We’ll also take a peek at how much you could save with an overpayment calculator.
With the fixed rate mortgage comes security. With the mortgage overpayment calculator comes potential savings.

Fixed rate mortgages are one of a few different types of mortgage available.
A fixed period of interest that may be a couple or several years.
If the interest rate remains static, so do your monthly payments.

What, if any, are the up sides to fixed rate mortgages?
Because your payments stay the same you don’t get ups and downs in your monthly payments.
It’s a lot easier to plan financially knowing your payment will be the same.

No matter what the average interest rate is, your rate will stay the same.
In the last few decades we have seen interest rates almost double in a few short months.
People on variable rate mortgages are much more likely to be affected by rapid rises in interest rates.

There can be certain circumstances when a fixed rate mortgage may not be right for you.
If you suddenly have an extra family member and need more space. Or you are simply considering moving home soon.
Any situation which sees you changing mortgage can invoke a horrid redemption penalty on you.

Fixed rate mortgages nearly always come bundled with a redemption penalty.
You can get hit with a nasty charge when you are least expecting it.
There is never a good time to be hit with extra charges so think carefully before taking the fixed rate mortgage.

It’s worth thinking about paying a bit extra each month in addition to whatever you normally pay.
It’s not set in stone that you have to pay the same minimum amount every month.
The lenders would love you to do this but they will rarely tell you that you can indeed pay extra.

If you do pay extra each month, are there any benefits to this?
The extra payments reduce the sum owed quicker and the result is you save years off the term of your deal.
By paying a bit extra now, the savings mount up substantially later on.

In what way does a mortgage overpayment calculator work?
Enter all the figures that relate to your mortgage.
You can then play around by changing the figure you can afford to overpay.

The calculator tells you how many years you will knock off.
It also tells you what sort of financial saving you can expect to make.
Both the years and cash saved obviously increase if you put in a higher overpayment figure.

You may be amazed by how much you could save.
If you borrowed a hundred thousand at five percent over twenty five years.
If you pay an extra fifty each month, you can shave more than 3 years off the length and save 12,000 in interest payments.

Now an example of 100 extra instead of 50 extra.
Paying 100 extra every month using the same example mortgage.
You can knock a staggering 6 years or more off the length and save yourself in the region of 20 thousand.

An extra benefit is the years you save are free from any payment whatsoever.
You could be free of the shackles of your mortgage early by paying a little more now.
You never get info like this from your lender. This sort of stuff is kept quiet by the industry.

In the example where we paid an extra 100 every month and shortened the mortgage by six years.
No payments for 6 years means another 40 thousand saved in monthly payments.
You don’t pay this money to your lender so you get to keep it, either save it or spend it.

There you have a few benefits of going for a fixed rate mortgage.
Every month you pay the same so you get to sleep easy at night knowing this.
We also had a look at a mortgage overpayment calculator and the potential savings that can be had.

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