How To Save Thousands In Interest On Your Home MortgageWritten by Sameer S Panjwani
So you have a mortgage on your home or planning to get one? Here’s something to consider if you want to reduce your interest payment and save on thousands of dollars. Consider going in for a bi-weekly mortgage payment plan.So, what is a bi-weekly mortgage payment plan? The difference in this type of mortgage plan lies in frequency of payments. Out here you make your payments every two weeks instead of every month. By going in with such a payment plan, you end up paying for 52 weeks in a year, i.e. 1 month more than otherwise 12 payments you would make with monthly plan (52 / 4 = 13 payments in a year). You may think why pay extra? But benefits are there for all to see. By going in for such a mortgage plan, you are reducing tenure of your loan as well as continuously reducing principal and interest which has to be repaid.
| | How Credit Scoring WorksWritten by Sameer S Panjwani
The all important credit score! It determines amount of loan you can get, it determines interest rate at which you are charged for a loan, etc. Your credit score plays an important figure in your financial life. So what goes into making that all important score of yours? How does it increase, how does it decrease and what are factors that go into its calculation?Your credit score is a number that reflects on likelihood at which you will pay back a loan. Scores range from 350 (high risk) to 950 (low risk). Credit scores do not take into consideration your income, how much savings you have or demographic factors such as gender, race or nationality. Your credit score is affected by your current debt level, your past delinquencies, your credit history and how many times your credit report is pulled up by various agencies. Your score considers both positive and negative information in your credit report. For instance, recorded late payments will lower your credit score while a good track record of making payments on time will raise your credit score. Timely payment of your bills is important to ensure you maintain a good credit score. The amount of balance you have left on your credit card, how many credit card accounts you hold and your use of revolving credit also affect your credit score to a great extent.
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