Mortgage Archives - Financial Trend Forecaster

Welcome to the Wonderful World of Closing Costs and Refinancing

Leave a Comment / Mortgage / By Tim McMahon

The simplest way to include the closing costs in your refinancing calculations is to simply calculate the overall savings you expect to make when refinancing and deduct the estimated closing costs sum from the savings. If you don’t break even, you’ll be losing money on the refinancing, so maybe sticking to the old terms for a while longer is more advantageous.

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Home Buying in the U.K.

Leave a Comment / Europe, Mortgage, Real Estate / By Guest Contributor

In today’s global economic climate, it can be difficult for people to buy a house while struggling with annual bills. But the U.K. government has a number of schemes available to first time buyers and existing homeowners such as Help To Buy, NewBuy and Right to Buy. Offering Government loans and easy ways to get 95% mortgages, these schemes have all been designed to help people own their own homes quickly and easily.

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Get A Lower Interest Rate on Your Mortgage

Housing, Mortgage / By Guest Contributor

These days very few people can afford to buy a house for cash. So, if you’re looking to purchase a new home, you’re probably planning on getting a mortgage. Obviously, that requires you to pay additional interest to the bank, adding thousands of dollars to the purchase price. By making some smart choices before you

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Refinancing Your Home Mortgage

General, Housing, Mortgage / By Guest Contributor

Refinancing your home mortgage to a lower rate will not only reduce your monthly payments, it will also significantly reduce your overall debt burden. One percentage point in interest rates can add up to many thousands of dollars in savings in interest payments. In fact, most people find that when they reduce their interest rates

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Is Bernanke Stuck in a Housing Time Warp?

FED, Government, Housing, Mortgage / By Guest Contributor

Current FED Policy Doesn’t Make Sense Could the FED really think that low interest rates are good for savers? Is housing really a vehicle for saving? Is it a good idea to use your home equity as an ATM machine? Should the government be stimulating housing production with a 30% to 50% oversupply already on the

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Differences Between Pre-Qualified and Pre-Approved For a Home Loan

Mortgage / By Guest Contributor

Pre-Qualified vs. Pre-Approved for a Home Loan- People commonly use the terms pre-approval and pre-qualified interchangeably when they are in the market to buy a home. However, these are two entirely different concepts, and it’s important to understand the difference between the two. One is an estimate, the other is a tentative commitment, and neither is

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Is it a Good Time to Buy REITS?

3 Comments / Investing, Mortgage / By Guest Contributor

Buy Rental Property or a REIT? Although many individuals prefer rental units as additional income, one of the last things you probably want to do in your retirement is to find renters and deal with the drama that comes from having them rent for you. You have to find tenants with reliable income, continue to

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Using the MIP to Decide- When to Refinance

5 Comments / Mortgage / By Tim McMahon

The MIP (Moore Inflation Predictor) is our proprietary index that projects future inflation rates one year into the future. It uses a “fan” style with varying level of likelihood that certain rates will be attained. If you are considering refinancing (see When is it Right to Refinance? ) naturally you want the best rate. In

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When is it Right to Refinance?

2 Comments / Mortgage / By Tim McMahon

With “everyone” talking about the historically low mortgage rates you are ready to decide if it “pays” to refinance. The “rule of thumb” supplied by mortgage companies is that if you can reduce your interest rate by 1% it is usually profitable. But there is more to it than that. Like how long are you

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Low Mortgage Rates – Reduce Your Payment or the Length of the Loan?

Leave a Comment / Mortgage / By Tim McMahon

Prior to 2008 current mortgage rates were at their lowest levels in decades and many people were refinancing. At the time I warned that “this trend seems dangerous to me because rather than using this as an opportunity to shorten the life of their mortgage people are just reducing their payments.” Or worse still they were

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