Financial Responsibility with a Mortgage Calculator

A mortgage is an enormous investment. Often, it can be used as security for a loan which costs hundreds of thousands of dollars. Recently, millions of people began to run into financial problems because they took lucrative variable rate home loans with their mortgages. When those variable rates increased, they found themselves unable to pay off the loans, and because their homes were used as security, they faced foreclosure on their homes. However, such a fate by no means has to be your own, and by practicing some safe tips when taking out a mortgage and home loan, you will absolutely not have to experience these problems. A mortgage calculator can provide further assistance to determine your financial abilities.

How Much You Can Really Pay

Banks are great at giving you rough estimates about how much you could afford to pay back for a loan. However, they fail to take into account anything but the bare necessities. If you don’t want to find yourself walking to work (because you can’t purchase gas) and eating PB&J sandwiches for all three meals of the day, then a mortgage calculator is the more useful tool to use. While a mortage calculator won’t tell you how much you can afford, it will tell you how much you will have to pay back each month (or every two weeks if you choose) on a particular loan. Once you know how much you need to pay back, you can figure out if you can reasonably afford such a loan or not.

A mortgage payment calculator is the best way to protect your home ownership, and it should be used before taking out any mortgage, be it for a $5,000 loan or a $300,000 loan. However, you can also use a mortgage calculator to figure out ways to save money. You can easily find out how paying back a home loan bi-weekly as opposed to monthly can save you money and exactly how much in interest. For example, a $250,000 home loan could easily save $50,000 in interest over the years if paid back twice a month, but that loan could also be paid back five or six years faster at that.

Mortgage calculators are free, and all you need to know is the amount that you want to take out in the loan, the interest rate, and how often will pay it off. It only takes a few minutes to fill out, and because they are theoretical, you aren’t giving up any private information. Within seconds you can figure out your financial responsibilities given a particular loan, and you can protect your family’s future by using this simple tool.

Your House as Security with a Mortgage

A mortgage is probably the most expensive transfer of money that you will ever be involved in, but there are lingering misconceptions about what one actually is. What is it, what is it used for, and how does one successfully end one? Picking one out can take weeks or months as you make some difficult decisions, ranging from how much money you want to take out in your home loan to how often you want to pay it back. Mortgages can be extremely useful and safe for responsible home owners, while in the hands of irresponsible folks, they can force owners to lose their homes.

Stay on Track

First and foremost, a mortgage is simply security with which to take out a loan. Your home’s worth will be appraised, and then banks will be able to tell you how much you’ll be able to take out in the loan. It is not actually a loan itself just the collateral for a loan. Such a tool is the main reason that so many people are able to afford homes in the first place. However, be warned that failing to fulfill your fiscal responsibilities to the bank could result in your home being taken away from you, as is the case with any type of loan collateral. Of course, you’ll be armed with the full knowledge of exactly what you need, and picking out the proper home loan is integral to a successful mortgage.

Fortunately, there are a number of tools to help you figure out what you need to do in a mortgage before you even sign up for one. A mortgage calculator can help you determine monthly payments to pay off your home loan based on recurrence of payments, interest rate, and principle. While the bank might give you a value that it feels that you can pay back, you might find that you are not quite able to comfortably afford the bank’s estimate, and doing your own research can be a better indicator of your ability to pay back a home loan.

Taking out a mortgage is a big step in many investments, from purchasing a new home to going on a vacation. After all, mortgages can be used as collateral in loans for many types of purchases. Of course, you always run the risk of losing your source of income while a mortgage is active, in which case you could quickly run into a great amount of trouble. Therefore, it is still useful to have some extra funds on hand to make minimum payments if you lose your job. Such a precaution can buy you enough time, often making the difference between losing your home and keeping it.

What Is Lender Paid Mortgage Insurance?

If you are looking into getting a loan and have very low or no credit no doubt you have talked about getting mortgage insurance. There is an option called lender paid mortgage insurance that some banks and other institutions will offer to help people with low credit get a loan. Lender paid mortgage insurance will offer many benefits over the regular type of mortgage insurance. The question remains though, what exactly is lender paid mortgage insurance?

Defining Lender Paid Mortgage Insurance

Lender paid mortgage insurance is actually relatively simples the lender pays the premium on your insurance and charges you a higher interest rate. There are many advantages to doing it this way. The first is that there is no direct monthly MI premium, and on MI cost on your closing. By taking the payments and spreading them over the lifetime of the mortgage there is less of a big hit up front. While your payments monthly may be up slightly, overall these payments should be down for you if you were to compare it to your mortgage payment plus the premium for the mortgage insurance.

By getting lender paid mortgage insurance people without PMI can qualify for a much higher loan. This means that the dream house you always wanted can now be yours when before it seem completely out of reach. In addition after paying for a couple years you can refinance and get into a fixed term loan with no PMI once your credit rating has improved. By getting into a larger loan up front you can begin paying down on dream house today as opposed to tomorrow. Also, you can take advantage of lower home prices now and get locked in today. The real estate market is bound to jump back, and if you can use lender paid mortgage insurance to get in today you will have a much nicer house for years to come.

You also can get increased tax breaks with lender paid mortgage insurance at the end of the year. The interest you pay on your mortgage is completely tax deductable and by paying a higher rate you have more that you can deduct off of your taxes.

Lenders also like lender paid mortgage insurance because they offer many flexible packages that the lenders can opt into. If you have to get mortgage insurance, look at lender paid mortgage insurance as a very viable option for you new home today.

Republic Mortgage Insurance Company A Name You Can

Republic Mortgage Insurance Company A Name You Can Trust

The Republic Mortgage Insurance Company helps lenders by making sure they get reimbursed if a person ends up having to go into foreclosure. These losses can cost banks millions and without quality companies like the Republic Mortgage Insurance Company to stand behind the loans banks would quickly run into more serious problems and possibly even have to close their doors.

History Of Republic Mortgage Insurance Company

Beginning in 1972 Republic Mortgage Insurance Company has always prided themselves on their customer service. The currently have more then 2000 active customers they have a strong enough base to support the company without losing that personal touch. Currently the company is managed by Chris Nard, the acting OCEO. Together with other members of the senior executive team, Chris continues to lead the Republic Mortgage Insurance Company in a profitable direction.

The Mortgage Insurance Company is a subsidiary of Old Republic International Corporation. This company was founded in 1923, although some of their subsidiaries have histories extended farther back. This company is one of the top 50 largest shareholder owned insurance business in the United States. They provide a wide variety of risk management services to customers around the world. The primary focus is in the mortgage and personal property fields. They have served many of the United States leading industrial, commercial, and residential lenders for over seventy five years.

The Republic Mortgage Insurance Company offers a wide variety of services including lender paid mortgage insurance. Their operating philosophy is very similar to the conservative outlook of the parent company. The core values concentrate on core competencies dedicated towards strong capitalization with a willingness to forego volume in poor market situations. This long term view means that the lenders and their customers will be safe from fluctuations and down turns. They believe in long term relationships and offer knowledgeable and professional service.

One can trust Republic Mortgage Insurance Company to come through on their commitments and honor all true claims as quickly as possible. Not only will they get the lenders the money they need quickly but courteously as well. This company lives by its word and has been true to it since it was founded.

As you can see the Republic Mortgage Insurance Company has a long standing tradition of customer service and protection for its clients. If your bank is requesting that you get mortgage insurance, you are going to want to see the services that they have to offer.

What Is A Mortgage Insurance Premium?

If you are being required by your bank to pay a mortgage insurance premium it is usually because for some reason the bank wants some extra security when you are getting the loan. Paying the mortgage insurance premium will make sure that the bank will offset any losses in where they are forced to foreclose on your loan. Not everyone is required to have or pay a mortgage insurance premium, but if your credit is at all risky you may be required to. There are ways you can avoid having to pay a mortgage insurance premium.

Steps To Avoid Mortgage Insurance Premiums

The first thing you want to do is get your credit in the best shape possible. Having a score on all three scores above 700 will almost certainly assure yourself of not having to pay any mortgage insurance premiums. Regardless of the bank or lender the typical mortgage insurance company will charge anywhere from several hundred to several thousand dollars a year in mortgage insurance premiums. This number will be based directly on the value of the home compared with your credit rating. By having as high a credit rating as possible you can make sure that you are maximizing your investment. If you have past bankruptcies and foreclosures on your credit report you are more then likely going to have to pay some kind of mortgage insurance premium. They key is to try to get it as low as possible.

The other thing you can do to make sure that you do not have to pay this premium is to have a significant amount of money to put down. For the most part it is required that you have at least 20% down to avoid having to get mortgage insurance. This will put the loan and mortgage in a favorable loan to value ratio that makes it acceptable for banks to issue the loan without insurance.

In addition in some cases you will not have to pay mortgage insurance for the entirety of the loan. You can avoid payments of the insurance by getting the amount owed below that 20% threshold. Before you sign anything for your mortgage or mortgage insurance make sure you know all of the conditions and have in there plans to change them or switch out as the loan value gets to a more acceptable level. Taking the proper steps in the beginning cans save you thousands and tens of thousands of dollars over the term of the loan.

Basic Things That You Need To Know About Mortgage Insurance

Basic Things That You Need To Know About Mortgage Insurance Protection

A lot of people do not get mortgage insurance protection thinking that this type of insurance policy is just an additional burden for them. This is rather unfortunate because getting mortgage insurance protection actually has more advantages than disadvantages. No, mortgage insurance protection does not only protect the lender. This type of insurance also benefits the borrower as well. To help you understand the importance of getting mortgage insurance protection, read on.

When To Get Mortgage Insurance Protection

Not all people are required by law to get mortgage insurance protection. For some people who can afford to pay large down payments of the home that they want to buy, this type of insurance policy may not be necessary. However, for people who are on a tight budget and would like to pay a lower down payment, this type of insurance policy is a must. Mortgage insurance protection is actually required for loan amounts that exceed 80% of the value of the home that you want to buy. If you are thinking of buying a home and you cannot afford to pay the 20% down payment, getting mortgage insurance protection is your ticket to getting that new home. This means that you can move into your new home by just paying a small fraction of the standard down payment amount.

The amount of insurance premiums will be computed based on your outstanding balance. For instance, if you pay 15 percent down payment on your home, the 85 percent outstanding balance on the price of the property shall be the basis for computing your insurance premiums. Yes, you need to shell out an additional amount of money for the mortgage insurance premiums but considering that you can get your new home for a lesser down payment; the extra amount of money that you pay for your insurance premiums is well worth it. Just consider the amount of money that you pay for your insurance premiums as part of your purchase price.

Is It Necessary For You To Pay Your Insurance Premiums In Advance?

Although it would be nice to pay your insurance premiums in advance, you are not required to do this. Most insurance companies will allow you to add the cost of your insurance premiums on your monthly amortization. To get some ideas as to how much insurance premiums you will need to pay monthly, ask your creditor and your insurance company to give you a breakdown of the amounts that you will need to pay monthly.

How To Do Away With Private Mortgage Insurance Payments

In these times of economic crisis, a lot of people scramble to save their homes. The task of saving ones home is not easy but there are ways to do away with some extra payments such as private mortgage insurance premiums. If you are one of those people who did not pay at least 20 percent down payment when you bought your home and were forced to get private mortgage insurance, don’t worry. You do not have to pay for private mortgage insurance protection premiums for life. Yes, you are allowed to cancel your private mortgage insurance coverage when you fulfill certain conditions. To help you get rid of your private mortgage insurance premiums, here are some tips for you.

Get Over The 20% Ownership Threshold

The best way to get away from paying private insurance premiums is to raise your equity on your home above the 20 percent level. Raising your equity over the property beyond the 20 percent threshold is very important. Once your equity on your home exceeds 20 percent, you are no longer required to maintain private mortgage insurance coverage.

There are three ways to raise your equity on your property. First, you can increase your down payment to exceed 20 percent. For instance, if the property that you want to buy is worth $200,000, you need to pay $40,000 which is equivalent to 20 percent of the total price is order to avoid paying private mortgage insurance premiums. Second, pay your monthly amortization religiously for several months and when you hit more than 20 percent ownership, you may cancel your private mortgage insurance coverage. This means that if your home is worth $200,000 and you have already paid about $50,000 which is roughly 25 percent of the value of your property, you may now cancel your private mortgage insurance coverage.

Third, you can have the value of your property reassessed to increase your equity. In other words, if the value of your property has increased over time, you may be able to cancel your private mortgage insurance coverage. Real property tends to appreciate with time so there is a big possibility that the home that you bought for only $200,000 dollars four or five years ago will now be worth about 20-30% of its original price. Improvements on your property can also push up the price of your home. To get some ideas as to how much is the current value of your property, get a new appraisal of your property.

Important Things That You Must Know About Mortgage Insurance

Are you planning to buy a home? If you are planning to buy a home and you do not have enough money to cover the required 20% down payment, do not despair. With the help of mortgage insurance coverage, you can still buy your dream home even if you do not have enough money to cover the 20% down payment. Despite the financial crisis, there are still companies out there that are willing to finance the acquisition of your new home even if you only have enough money to cover about 10% of the needed down payment. All you need to do is get insurance coverage to cover for whatever losses the financial institution may sustain in case you default on your mortgage.

However, before you jump into the chance of buying a new home for just a little amount of money as down payment, there are a few important things that you need to know about mortgage insurance. To give some ideas of what you are getting yourself into when you get mortgage insurance coverage, here is some basic information about mortgage insurance for you.

Cost Of Mortgage Insurance

The cost of mortgage insurance may vary depending on several factors. Insurance companies usually look into the amount of the loan that you want and your capacity to pay the mortgage when they make assessment on your insurance policy premiums. They also consider your credits scores. If you happen to be one of those people who have very good credits scores, you may be able to get lower private mortgage insurance premiums. On the other hand, if your credit history is less than impressive, your insurance premiums may be a bit high. However, the good news is that mortgage insurance premiums seldom go higher than one to one and a half percent on the total cost of the property that you want to buy. This means that if the property that you want to buy is worth $300,000, you may have to pay a total insurance premium of about one to one and one half percent of that amount. Don’t worry; this amount will be spread over the term of your mortgage so you do not have to pay the whole amount of the mortgage insurance cost up front.

Mortgage Insurance Premium Is Not Tax Deductible

It is a bit unfortunate but the government still does not allow mortgage insurance premiums to be deducted from your income tax returns. Mortgage Insurance premiums are considered as your direct expense and cannot be passed on to the government as tax exemption.

Learning About The Fixed Mortgage Quote

When it comes to deciding upon what type of mortgage the individual wishes to enter into for the purchase of their home, there are many options. First of all it is important for the individual to obtain a quote.

Those quotes can be through various mortgage vehicles. Some of those mortgage vehicles include the use of an adjustable rate mortgage, no interest mortgage or a fixed mortgage quote.

Of the three the most traditional is the fixed mortgage. Therefore, there are many ways that the potential homeowner can obtain a fixed mortgage quote. One of those ways that an individual can obtain a fixed mortgage quote includes the use of the Internet.

What Is A Fixed Mortgage Quote?

One of the most traditional ways of purchasing a home is through a fixed mortgage. A fixed mortgage is a loan to purchase a home in which the interest rate is fixed over the length of the loan.

The most traditional period of time that a fixed mortgage quote is given is for 30 years. However a fixed mortgage quote can also be obtained for a period of time that consists of a 15 or 20 year mortgage loan.

This type of mortgage is extremely popular and safe because the buyer and the seller agree to set terms. For example, an adjustable rate mortgage can adjust to either a lower or higher rate of interest over the length of the loan. These interest terms can adjust according to the terms of the mortgage agreed upon by both the lender and the buyer.

With a fixed mortgage loan the borrower does not need to worry about the monthly payments changing.

Fixed Mortgage Quote Through The Internet

One of the best ways to obtain a fixed mortgage quote is by going online. This is extremely popular due to a number of reasons.

One of those reasons is that the individual who is wishing to obtain a fixed mortgage quote can go online at any given time. This is not only a convenient way of searching for a fix mortgage quote but also is less intimidating as often another individual does not need to be interacted with.

In addition, utilizing the Internet, a number of fixed mortgage quotes can be obtained from various financial institutions. This can be extremely beneficial to the individual seeking a mortgage because it becomes more competitive. Subsequently individual financial institutions compete for the customer s business.

Also, when inquiring about a fixed mortgage quote it is important to remember a number of other features. Specifically, one of those features is that to obtain a lower interest rate it is important to have a sufficient amount of money to put down as a down payment on the home to purchase. Generally this down payment is at least 20% of the mortgage.

Additionally, if the individual does not have the 20% to put down on the home loan they will often have to purchase mortgage insurance. This mortgage insurance is called PMI and is an added amount to the mortgage payment to purchase the insurance to protect against default.

Ways To Obtain A Free Mortgage Quote

One of the key components to becoming a homeowner is affordability. This affordability can be realized by having a good credit rating, a substantial down payment and sufficient annual income to afford the size of home that the individual desires. Ultimately, affordability is determined by the best mortgage that the potential home buyer can negotiate.

Therefore, there are many ways that an individual can obtain a mortgage quote and ensure that the offer made is a free mortgage quote. Those ways of obtaining a free mortgage quote are through the Internet and through a mortgage broker.

Internet Free Mortgage Quote

One of the most convenient ways of obtaining a free mortgage quote is by utilizing the Internet. This is because there are many financial institutions that streamline the mortgage application process through the use of the Internet. This process not only helps facilitate the application process by allowing the individual to apply online, but allows the applicant to make that application at a time during the day or night.

In addition, by utilizing the Internet, the Internet financial institution can help to keep their costs at a minimum. This is due to the fact that everything is done electronically and does not require, for the most part, the use of extensive overhead or individuals on payroll. Often this cost savings is passed on to their customers and potential customers.

Also, the individual can utilize one other type of Internet website. Those websites will help the individual applying for a mortgage to enter the pertinent information and then within a certain timeframe the Internet Company will provide a minimum number of free mortgage quotes. This is extremely beneficial as the Internet site will have done all of the homework and inquiries to find the possible mortgage lender based on the criteria that was imputed by the customer.

Mortgage Broker

Another possibility for an individual to utilize in regards to obtaining free mortgage quote is by contracting with a mortgage broker. Sometimes this can be done by the individual themselves or it can be through an arrangement set up by the individual s realtor.

A mortgage broker simply works with lending institutions to try to arrange the best mortgage for their customer based on the individual s mortgage needs. Those mortgage needs include the actual amount of the mortgage being considered, the individual s credit score, the amount that the individual can put down as a down payment, etc.

In addition, if the mortgage broker is so directed, they will provide a number of options that the customer can choose from. Those options can include a fixed mortgage quote, adjustable rate mortgage quote, combination mortgage quote, etc.