Mortgage Loan Information - Know The Basics When You Refinance Or Purchase A Home

Written by Carrie Reeder


If you are currently looking for a new home, chances are that in allrepparttar excitement you won’t really give any thought torepparttar 149018 type of home loan mortgage you take out, instead going withrepparttar 149019 first one offered to you. This could be a serious mistake – costing you thousands, if not tens of thousands. Make sure you know all aboutrepparttar 149020 different types of home mortgage loans before you starting looking for that new dream home!

Here are some ofrepparttar 149021 basic types of mortgage loans:

Fixed-rate home loan mortgage -

Asrepparttar 149022 name suggests, this is a plain-vanilla home loan. Basically you borrow a certain amount over a certain period at a fixed rate of interest. You then payrepparttar 149023 same monthly installments forrepparttar 149024 life ofrepparttar 149025 home loan. The benefit of a fixed-rate home loan is that you can easily budget forrepparttar 149026 repayments. The downfall of a fixed-rate home loan is that you could end up paying a higher rate of interest than everyone else – no one knows what interest rates will be in 15-20 years time!

Adjustable-rate home loan mortgage -

Mirroringrepparttar 149027 fixed-rate mortgage isrepparttar 149028 adjustable-rate mortgage. Again, you borrow a certain amount over a certain period, however in this caserepparttar 149029 interest rate is not fixed, but is adjustable (or ‘floating’ as you may also hear it called). The upside to adjustable-rate home loans is thatrepparttar 149030 interest rate atrepparttar 149031 start ofrepparttar 149032 loan period can be lower thanrepparttar 149033 fixed rate would be. The downside is that it is difficult to budget for, asrepparttar 149034 amount can change, and you are atrepparttar 149035 mercy of something outside of your control – interest rate fluctuations, which can change quickly.

Saving for your child’s financial future – UK parents inactivity harming their children’s university and mortgage savings

Written by Richard Green


The British government atrepparttar beginning of this year officially launched its Child Trust Fund (CTF) initiative in an effort to encourage parents and children to developrepparttar 149017 savings habit and to teach childrenrepparttar 149018 value of saving their own money.

Chancellor, Gordon Brown said, "The Child Trust Fund is designed to ensure that every child in our country has assets and wealth and that no child is left out and all children in Britain have a stake inrepparttar 149019 wealth ofrepparttar 149020 nation".

The basis ofrepparttar 149021 CTF scheme is that every child born inrepparttar 149022 UK on or after 1 September 2002, will receive an initial Government payment of £250-£500 (depending on family income), which must be placed into a tax-free CTF savings account which cannot be accessed for withdrawals untilrepparttar 149023 child reaches 18 years of age. Additional contributions torepparttar 149024 account can be made byrepparttar 149025 child’s family or friends, andrepparttar 149026 government also plans to make another payment to children on their seventh birthday. Parents that do not investrepparttar 149027 government's gift within a year will have it invested for them byrepparttar 149028 Inland Revenue.

This ‘free money’ for children idea seems onrepparttar 149029 face of it to be a great idea for parents. A recent survey byrepparttar 149030 Halifax has shown that, of those parents who have already opened a CTF account, six out of 10 planned to make further contributions, and wanted their children to userepparttar 149031 cash from a matured CTF to pay towards a university course. The survey also showed that 28% of parents hopedrepparttar 149032 cash could be used to buy a car, while 19% hopedrepparttar 149033 money could be put towards a deposit for a flat or house.

Although some families have taken torepparttar 149034 idea by quickly investingrepparttar 149035 funds to maximiserepparttar 149036 cash return for their child when they reach 18, with figures from HM Revenue and Customs recently showing that nearly half a million CTFs had been opened, others have been more reticent, with approximately 1.2 million CTF vouchers sent out to parents still not invested. A study by Abbey found that of those who had so far not invested their CTF voucher, nearly two-thirds stated that they, "just hadn't got round to it yet", while about one-quarter had not investedrepparttar 149037 money because they did not know which supplier to choose.

Another problem that has been recently highlighted isrepparttar 149038 lack of provision that has been made for Islamic children, as none ofrepparttar 149039 existing CTF accounts complied with Sharia law. Under Sharia law, it is forbidden to give or receive interest or to invest in unethical firms. This meant that, in order to userepparttar 149040 voucher, parents ofrepparttar 149041 120,000 eligible Muslim babies could only choose non-Sharia compliant accounts. Thankfully, in a move welcomed byrepparttar 149042 government,repparttar 149043 first Sharia compliant CTF has just been launched by Children's Mutual, allowing a growing community of people who were previously reluctant to invest their CTF,repparttar 149044 opportunity to benefit from CTFs. The take-up ofrepparttar 149045 CTF has proved to be extremely disappointing forrepparttar 149046 Government, with those who have not so far invested their voucher being at risk missing out on valuable growth to their fund. Ray Milne, managing director of Halifax Financial Services, said that "Most parents probably still have opening a Child Trust Fund on their 'to do' list, but we're urging them to act now and ensure their children benefit from their investment". Whilst many viewrepparttar 149047 whole idea ofrepparttar 149048 CTFs as a waste of tax-payers money givenrepparttar 149049 ensuing pensions problem that is looming, others see that any benefit to future university students would be overshadowed byrepparttar 149050 rising cost of university tuition fees.

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