From the monthly archives:

July 2008

July 31, 2008

How can I reduce my monthly payments?

You have to analyze, what exactly your period payment consists of. The two biggest parts are the principal and the interest. In the early years they will very likely be accompanied by PMI. Under other circumstances unchanged, reducing any of these three components will result is a lower monthly payment. First of all, PMI has [...]

July 30, 2008

How risky is a HEL/HELOC?

It is rather risky, I’d say, because it is secured by your home equity. Should you default on your payments, you can lose your home. But the purpose of HELOC is not to deprive you of your property; it is to provide you with some funds when needed. If you make sure that you understand [...]

July 30, 2008

It is true that a biweekly mortgage pays a lot better than a conventional one?

It a sort of is. The main distinction between the two is the number of period payments made within each mortgage year. You may have a conventional mortgage with a period payment due twice a month, which is very close to, but not exactly every other week. With a conventional mortgage you make 12 (months)* [...]

July 29, 2008

ARM Rates Are Skyrocketing! I don’t want to lose my home!

This very unpleasant situation does require a considerable financial effort on your part, but it can be resolved eventually to your advantage. The two most reliable ways are: to make extra payments towards the Principal, or/and refinance into a Fixed Rate Mortgage. How do extra payments help? The amount paid as Interest is a percentage [...]

July 26, 2008

Is there a way to pay my mortgage off sooner?

Yes. Moreover, the sooner you pay off your mortgage, the more cash you save for yourself as never-charged interest. The most reliable way to achieve such a spectacular result is extra payments towards the principal. A mere $20 on top of your regular monthly payment can result in roughly $24,000 of interest savings! The idea [...]

July 9, 2008

Reverse Mortgage

A reverse mortgage can become a considerable financial aid to retired seniors, who live in a property they actually own. The equity accumulated in their homes can be converted into cash, but the title to the property remains with the owners. The reverse character of the mortgage is a sort of a reverse playback of [...]