Lower Mortgage Payments can Increase Wealth

Written by Ida Byrd-Hill

Continued from page 1

I proposed this loan program to Client #2.

Client #2$1.2 Million Loan Amount Current 5/25 ARM@4.25%=P&I$5,903.28/ month 5th year loan balance$1,064,681.48 Equity (assuming no appreciation)$ 135,318.35 Proposed LIBOR ARM@3.00%=Interest Only$3,000/ month Applied additional $2903.20 / month to principal for 5 years 5th year loan balance$ 971,261.81 Equity (assuming no appreciation)$ 228,738.19

You can see from these scenarios this mortgage can be a great tool to reduce your monthly mortgage payment or to shave downrepparttar loan balance thereby increasing your equity.

This mortgage interest program is termed negative amortization. Rather than paying offrepparttar 151105 interest overrepparttar 151106 time period, you are paying of a small portion ofrepparttar 151107 interest but notrepparttar 151108 required amount. Interest rates can go as low as 1.25%

If you want savings refinance your mortgage.

Ida B. Byrd-Hill was the President of The Harvard Group Wealth Management L.L.C. for 10 years. She created investment portfolios, insurance plans and residential/ commercial financing. She is President of Livinginstyleonline.com She has served as guest columnist for the Michigan Front Page for 2 years and a speaker for the Better Investing television show hosted by David Chilton, author of The Wealthy Barber.

4 Thinking Points Before Buying a House

Written by Roger Sorensen

Continued from page 1

3. Does renting cost more than owning? Sometimes you can find a house that is actually cheaper to own thanrepparttar place you are currently renting. If you are purchasing a house purely forrepparttar 151104 sake of less cash outflow each month, be sure to consider allrepparttar 151105 costs of ownership: mortgage, insurances, maintenance, snow removal, etc. If you still find that owning is more cost effective than renting, go for it.

4. Is it what you really, really want to do? Occasionally owning a house is what you really want to do, even if it doesn’t make economic sense. In that case, make sure you do your homework, considerrepparttar 151106 three thinking points above, and makerepparttar 151107 best choice you can. Buyrepparttar 151108 most house forrepparttar 151109 least money inrepparttar 151110 best neighborhood.

Buying a house can be an emotionally charged time in your life. It is also an enormous user of your resources. Take your time and be confident that you are ready to move into another stage of your life where you can be proud to say “This is my house.”

Roger Sorensen is America’s Financial Guide. Learn more at his website www.Slave2Work.com – ask and receive answers to your personal finance questions, read his writings, or join the newsletter Money Basics. “How-To Be Debt Free!” is now for sale, read about it today at www.Slave2Work.com/debtfree.html

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