The most important part of the home buying process is choosing the right mortgage loan for your new home. Because homes are so expensive, most people cannot afford to pay for a new home outright with savings, so learning about the different types of mortgage loans available is paramount to being able to purchase a home. The different mortgage options available have the ability to cost or save the potential homeowner a great deal of money over the life of the loan. Here are some things that you should think about when attempting to choose the right mortgage loan for your new home.
Fixed Rate Mortgage Loans
Fixed rate mortgage loans are home loans that have an interest rate that does not change over the life of the loan. Many homeowners prefer these types of mortgage loans because the amount that they are required to pay each month remains the same until the loan is paid off, allowing them to accurately budget for the payment. As the loan is paid off, more of the payment goes towards the principal of the loan and less goes towards the interest owed to the bank.
These mortgages are typically written for a term of 15 or 30 years. With a 30 year mortgage term, the payments are smaller but you will pay more in interest over the life of the loan. With a 15 year mortgage term, you will pay less interest and build equity in your home faster, but the payments are higher, taking more of your after-tax income each month. Before deciding which type of mortgage loan to obtain, all of these factors should be taken into consideration and evaluated against your current financial situation.
Adjustable Rate Mortgage Loans
Adjustable rate mortgage loans are home loans with an interest rate that fluctuates with the market rate. When the market rates are low, the homeowner has a lower mortgage payment, but when the market rate rises, the amount required to keep the loan current rises as well. There is no guarantee of what the market rate will be in the future, so homeowners that choose this type of mortgage rate are taking a gamble that the rate will remain the same or go lower in the future.
Because of the changing interest rate, it can be difficult to budget for your mortgage payments if you choose this type of loan. Most of the rates that mortgage loans are tied to change quarterly, semi-annually, or annually. If the rate begins to rise, you could find yourself paying more and more for your home each month until the payments become unsustainable. Depending on market conditions, an adjustable rate mortgage could end up being more expensive than a fixed rate mortgage over the same term.
Paying off your mortgage ahead of schedule has the potential to save you a large amount of money. By paying off your mortgage as quickly as possible, you reduce the amount of interest that you will pay over the life of the loan and can build equity in your home faster. There are a number of different ways to go about paying your mortgage off early and the method chosen will depend on your personal preferences. Some methods of paying down your mortgage are safer, faster and more painless than others. Here are some good ways to go about paying off your mortgage before the end of the loan term.
Pay More With Each Payment
One of the easiest ways to pay off your mortgage early is to increase the amount of money that you send in for each payment. Every dollar that you send in over the amount required should go towards the principal of the loan, effectively shortening the amount of time that you will be paying the principal. This also reduces the amount that you pay in interest as the loan amount declines. However, this is only an effective repayment method if the extra amount is applied to the principal balance and not held over for the next payment and there is not a prepayment penalty clause written into your mortgage contract.
Refinance And Choose A Shorter Term
While many mortgages are written for a 30-year term, you may be able to refinance your home for a shorter loan term, allowing you to pay off your mortgage faster. Your payments will be higher with a shorter loan term, because you are paying more of the principal with each payment, but you will pay less in interest over this time. Refinanced loans often have lower interest rates to begin with, so you can save a significant amount of money by refinancing to a shorter loan term.
Make Your Payments Bi-Weekly
Another easy way to reduce the amount of time that you are paying on your mortgage is to make your payments bi-weekly instead of monthly. This method takes advantage of the fact that there are 52 weeks in the year, yet only twelve months. If you make half of your payment every two weeks, you will end up with the equivalent of 13 months worth of payments at the end of the year. Making the equivalent of an extra payment each year can reduce a 30-year mortgage by about 6 years.
Being a billionaire, Batman probably doesn’t care overly much about the costs of insuring the Batmobile. Which is probably just as well, given that his driving record and his claims history would make his premiums pretty costly. So, how much would it cost to insure the Batmobile? This assessment is brought to you by HBF car insurance, check out their new site today.
Age — Batman first appeared in comics back in 1939. If he was about 30 in 1939, that would make him 103 now. However, Batman seems to remain about 30 no matter which decade it is, so as a driver over 25, he could probably save some money on his car insurance.
Marital Status — As a single man, Batman would pay more in premiums. He may be able to save money on insurance if he married Catwoman, Batwoman, or any of his other numerous love interests, but that’s not really a reason to get married, is it.
Driving Record — Being in Commissioner Gordon’s pocket would no doubt stop Batman from getting issued with the dozens of driving violations he deserves. The average man with Batman’s driving record would probably be uninsurable.
Annual Mileage — Just driving in and around Gotham would keep the Batmobile’s mileage low. This would probably save Batman a buck or two in premiums.
Other Drivers — Who else drives the Batmobile? If Robin was ever allowed behind the wheel, it may cause Batman’s insurance to increase. Young drivers can be seen as risky, making car insurance more expensive.
Value — There have been various Batmobiles over the years, and most have been valued in the hundreds of thousands. Given the high value of the Batmobile, plus all its extras and gadgets, the total amount insured would make premiums fairly steep.
Cover Type — Given the number of scrapes Batman and the Batmobile get into, you would expect Batman to opt for comprehensive cover to allow him to claim when he needs to. While less cover would be cheaper, it would be better for Batman to pay more for more cover.
Risk in Gotham City — With so much crime, and so many baddies running around Gotham City, Batman may find himself paying higher premiums. However, he does have secure parking in the Batcave, which could save him some money.
Previous Claims — Batmobiles over the years have seen their fair share of damage, and if Batman made claims on these incidents, it will make him look high risk to insurers. Again, this will mean higher premiums for poor Batman.
If you listen to the commercials on television, expressing your love will come with a hefty price tag. From jewelry to roses to fancy desserts, retailers want you to believe that your loved one will not appreciate your gift unless you have spent a great deal of money on it. Fortunately, most people are not that shallow and will appreciate the sentiment behind the gift much more than they care about how much you paid for it. Here are some great ways that you can express your love without having to spend a lot of money.
Plan A Picnic
Planning a picnic with your loved one is a great way to show how much you care. Nearly everyone likes to have a picnic outside in the fresh air when its warm outside and it will be a perfect time for you to talk about things together. Plan a meal where everything can be room temperature and eaten with your fingers, like vegetables, fruits, sandwiches, cheeses, and baked goods. If you want to make the day really special, see if there are any free music concerts scheduled for the parks in your local area.
Picnics are not limited to the summer months. You can plan a cold weather picnic as well. If your loved one doesn’t mind being outside when it is chilly, pack a picnic with a thermos full of their favorite hot drink and some snacks to munch on while relaxing on the picnic blanket. If they would rather be indoors when it is cold outside, turn your living room or bedroom floor into a picnic area, complete with candles, yummy treats and a bottle of wine. Use your imagination to make the picnic a special event for both of you.
Leave A Message
Messages and heartfelt notes are a great way to express your feelings without having to spend a large amount of money. You do not have to go to the store to buy a sappy greeting card, as there are many other ways to leave a message for your loved one. Some people choose to write loving letters and hide them where their loved one will find them, like in the sun visor of their car or in their lunch bag. If you are the one that is usually up and out of the house before your loved one wakes, consider purchasing some window markers so you can write a nice note on the bathroom mirror before you leave. Simple actions like this will keep your love strong for years to come.