Mortgage Information - Refinancing? Second Mortgage? Home Equity Loan? Understand The BasicsWritten by Carrie Reeder
A mortgage is usually biggest purchase that an individual makes, and because of that, many people tend to get nervous during process. But wouldn’t it make things easier if you felt that you had a “handle” on process—or at least terminology? After all, in order to get best deal on your mortgage loan, you will need to understand certain things such as points, interest rates and closing costs.
If you feel like you could stand to brush up on your mortgage loan terminology, why not read following common terms and their definitions?
A point is amount that a borrower will pay in order to reduce interest rate on their mortgage. One point is generally equal to 1% of loan amount. For example, if you were taking out a 100,000 mortgage, and wanted lower interest rates, you might have to pay anywhere from 1-3 points (or $1,000-3,000 dollars) to get that rate. It’s important to note that some lenders will advertise very low interest rates, and only when you read fine print will you learn that you will have to pay points in order to get them.
When a lender makes a loan, they make money by charging interest on that loan. With a mortgage loan, all of that interest is front-loaded, which means that for first few years, every payment that you will make will go mostly toward interest.
Top 10 tips to save money on your car insuranceWritten by Paul Johnson
So, your car insurance is up for renewal…but premium has gone up again! Shouldn’t it be going down! If you’re fed up paying too much for your car insurance duck2water (www.duck2watercarinsurance.co.uk) have put together top ten ways you can reduce your premium without reducing level of cover:
1.Buy online Buying online can save you time and money. Companies who spend millions of pounds on advertising or run large call centres have to cover these costs somewhere, and they do so by adding these costs onto price of your insurance premium. Although online insurers do have overheads, they are much less than high street and telephone insurers, which means they can offer car insurance at up to 60% cheaper than other companies.
2.Drive a cheap and less powerful car Car insurance companies calculate their premiums on basis of car engine size, probability that it will get stolen and cost of repairing it. Although smaller cars such as Ford Fiesta’s and Renault 5’s are more prone to being stolen than larger saloon cars, they are cheaper to repair or replace and are therefore cheaper to insure.
3.Build up a ‘no claims history’ Car insurance companies give discounts for safe drivers with a good no claims record. By building up your no claims history you can benefit from a reduction (up to 60%) off your premium, and this discount can be transferred from company to company. 4.Increase your car security More security means lower risk for your insurance company and you can benefit from cheaper rates by locking your car in a garage a night, or installing an insurance company approved immobiliser or tracker.
5.Increase your voluntary excess By deciding to pay a higher excess it also means you’re less likely to make a small claim on your insurance and are therefore considered a lower risk. 6.Obtain more driving qualifications The Pass Plus qualification costs between £100-150 and involves taking lessons in different driving conditions such as at night and on motorway. By becoming a more skilled and experienced driver most insurance companies reward their customers by reducing their premium. As a result, qualification usually pays for itself within first year of qualifying. Another option is advanced driving test, but this can take much more time to pass than Pass Plus.