Guide to Interest Only Mortgages

Written by John Mussi


Here is a useful guide to Interest Only Mortgages. An interest only mortgage is one where your regular payments only go to pay offrepparttar interest onrepparttar 144082 money you borrow. You will invest to pay offrepparttar 144083 capital sum atrepparttar 144084 end ofrepparttar 144085 mortgage term.

An interest only mortgage means your monthly payments cover onlyrepparttar 144086 interest onrepparttar 144087 loan. They do not pay offrepparttar 144088 amount you owe. So, atrepparttar 144089 end ofrepparttar 144090 mortgage term, assuming you have made allrepparttar 144091 interest payments, you will owerepparttar 144092 same amount that you borrowed atrepparttar 144093 beginning. You need to have a lump sum available to payrepparttar 144094 mortgage back in one go at this time.

An interest only mortgage staysrepparttar 144095 same throughoutrepparttar 144096 mortgage term. Interest and a premium to an investment scheme are paid monthly. Atrepparttar 144097 end ofrepparttar 144098 term,repparttar 144099 proceeds fromrepparttar 144100 investment vehicle are intended to repayrepparttar 144101 mortgage. The amount will depend onrepparttar 144102 performance ofrepparttar 144103 investment scheme. If you choose an interest-only mortgage you are responsible for ensuring that you have sufficient funds available to repay your mortgage atrepparttar 144104 end ofrepparttar 144105 term.

With this type of mortgage you only payrepparttar 144106 interest accrued onrepparttar 144107 mortgage each month. It is usual forrepparttar 144108 borrower to take out a savings or investment plan atrepparttar 144109 same time as applying forrepparttar 144110 mortgage; this could be an ISA, Pension or Endowment plan.

What To Pay When You Can't Pay Everything

Written by Terry Rigg


With ever increasing consumer debt more of us are finding ourselves robbing Peter to pay Paul each month.

We go through our bills and find thatrepparttar money just won't stretch far enough to cover all ofrepparttar 144037 bills and expenses. It's hard to decide who you should pay when you have one bill that is stamped with "Final Notice" and you are behind on several of your other bills.

If you don't payrepparttar 144038 credit cards you know that you are going to start getting those harassing phone calls. If you don't payrepparttar 144039 house payment you are looking at foreclosure. If you don't payrepparttar 144040 utilities they will shut them off. How do you decide?

When you get to this point it's time to get down to basic survival and work from there.

I have actually talked to people that stated their credit cards were up to date but their mortgage was two months behind. This is one ofrepparttar 144041 biggest mistakes we can make when we don't haverepparttar 144042 money to pay everything.

Another mistake I see on a regular basis is that some people pay their bills atrepparttar 144043 expense of their food budget.

If you haverepparttar 144044 money to pay some of your bills you have to start with groceries first and necessary health items. You can try to save as much as possible on your food but that money has to be set aside before anything else.

The next bill you must pay is your mortgage or rent. While credit cards companies will drag out their collection process, mortgage companies and landlords will startrepparttar 144045 process of

foreclosure or eviction within just a couple of months.

Your next priority is your utilities. In many cases utility companies will turn off your utilities ifrepparttar 144046 bill isn't paid within a few days of receivingrepparttar 144047 bill.

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