Making Home Loans A Bit Sweeter

Can you see yourself paying off your home loan for the next 25 or 30 years?

Like most people, you might be thinking of repaying your home loan in a shorter period, than wait for decades. One of the first important steps to do is look for a home loan with cheap interest rates. Remember, you're in this for the long haul. You may think that an extra 0.5 percent isn't much today, but it could be a lot in the next couple of years, particularly if you factor in employment stability, inflation rates, and the like.

Look for good introductory rates, especially if you don't have much at the start but looking ahead in terms of money coming in soon.

Also, do your homework on low interest rate personal loans. Don't just take in the word of your banker or mortgage brokers. People who are selling you things usually are trying to earn themselves a hefty commission, too. It's better that you know at least the basics of what's out there so you can make your own decision in the end.

There's also an emerging trend of online money lenders and banks. Take ING for example- a completely online bank with the highest return on interest around! While it may take a little more effort to sort out the good from the bad, online lenders can certainly offer the price cuts that conventional brick and mortar institutions just can't.

Regarding loan repayments, why not choose the plans that allow you unlimited extra repayments? Instead of monthly payments, why not make it weekly? Some loans frown on extra loan repayments. Others put a cap on certain amounts. A few even charge you for extra fee if you will pay out the loan early! Making extra repayments may strain your finances a bit but think of the rewards in a couple of years. What if your financial obligations increase in the next few years, should you decide to have children, or start a new business?

What you can do to squeeze out those extra repayments is to cut down some spending on other areas. That money that is available on your credit card is not real cash. It is nothing but a glorified loan. Easy loans can be a viable option however, look out for those that do rollovers like a credit card. Companies that facilitate rollover credit don't plan on you getting your balance down to zero at the end of each month. Instead, the credit card company is calling you to increase your limit!

Save Money

If you think learning how to save money is difficult then please read this article. A new approach at the 10 easiest ways to hold onto your well deserved money. Whether it is investing in one of today's most prosperous stocks or just a good, old fashioned burying it in the backyard in an old tin can. We'll take you through the latest Top 10 countdown in cash saving ideas that is out there today.

Starting the countdown at number 10 is...

As the old saying goes, "A penny saved is a penny earned". Don't be another Hanna Montana spending your money all in one lump sum on another pink purse for your tiny dog. Limit your expenses to smaller amounts.

Example: -Instead of buying the Lexus, a smaller more economical car such as a Honda Civic or Toyota Camry will save you both money up front and in the long run with much better gas mileage.

Number 9 - In the Top 10 Ways to Save Money is....let your money do the work. Place it in a high rate savings account, such as your local banks, but I've found ING direct to have the best rates by a landslide. A few hundred dollars a month can really go a long way.

Number 8 - In the countdown of the Top 10 ways to save money is purchasing items that will have a resale value in the future. Whether it is a collectible or your favorite team printed on a coke can. Somebody, somewhere will find a need for one of these items after your life of appreciating it is over.

Number 7 - Out of the Top 10 Ways to Save Money is...Place your money in a house. Stop dumping your hard earned dollars to some landlord to pay for his mortgage. Save just enough money to get yourself a loan and go out and buy that dream house you've always wanted.

We'll continue our look at the Top 10 Ways to Save Money in our following posts.

If you think learning how to save money is difficult then please read this article.

Spring Real Estate News

Looking back now as we approach the end of April, this was an active month for the real estate scene. Here are some of the highlights of the April housing scene - some good, some not so good:

Short Term Interest Rates Exceed Long Term:

Finally for the first time in decades, it is cheaper to lock into a long term mortgage rate. Imagine that - mortgage financing that helps the buyer!

According to the latest results of the Primary Mortgage Market Survey (PMMS) released by Freddie Mac, the 30-year fixed-rate has dropped down to an average of 4.80 percent. Same time last year, the rate was 6.03 percent.

A one-year Treasury-indexed adjustable-rate mortgage (ARMs) averaged at 4.82 percent. Same time last year, the same mortgage was 5.29 percent.

A five-year Treasury-indexed hybrid ARM averaged at 4.85 percent, down from 5.68 percent last year, and the lowest rated since January 2005.

House Prices Rise and Fall

For the months of January and February, house prices rose consecutively. The last time this happened was in April 2007. Then March came along and the median home price declined by 12% from the previous year.

Record Price Cuts:

The famous Bailey Mansion in New York (previously owned by circus owner James Bailey), has dropped in price from $10 million to $6.5 million in less than 6 months.

Washington's most expensive home listing, Evermay, has dropped its asking price from $49 million to $39 million. This 3.58-acre, 12,000 square foot Georgian Revival estate has been on the market since September.

Probably the largest price reduction for a piece of U.S. real estate, the Greenwich, Conn. mansion formerly owned by the late Leona Helmsley can be had for only $75 million. This is a far cry from the original asking price of $125 million.

Foreclosures See Record Highs:

After seeing foreclosure rates dip in January, they shot up by 44 percent in March, increasing to record high 175,199. Apparently there is still a backlog of unprocessed claims that will be appearing in the next couple of months as lenders scramble to deal with the volume.

Freddie Mac Executive Found Dead:

David B. Kellermann, the acting CEO at Freddie Mac committed suicide, leaving behind his wife and daughter. Sadly, he was only one of the many victims resulting from this global financial crisis.

Jumbo Loans More Plentiful

It appeared jumbo loans had fallen by the wayside, but now lenders are looking at these loans as a new opportunity to make money, and they are definitely making a comeback. Among the many banks offering them, ING has a 30-year fixed rate loan running in the upper 5% range.

The Mortgage Reform Bill

This much awaited bill was introduced in early April in an effort to change the way lenders do business and encourage no frill mortgages with lengthy terms. It's a shame this bill wasn't introduced 7 years ago, much of the housing crisis may have been averted.

Incidences of Real Estate Fraud Spikes

Our vulnerable market has created a perfect climate for real estate fraud and other types of scams. Following right on the heels of Bernie Madoff, who was convicted of committing the largest investor fraud by a single person, spring has sprung with a new collection of real estate related "tom foolery".

In early April twenty-four people in San Diego were charged with racketeering in an elaborate mortgage scheme. In Dallas, the Stanford Financial Group was recently accused of selling certificates of deposit that were never invested, in addition to numerous other fraud allegations. A Twin Cities realtor was recently convicted of mortgage fraud. A Georgia attorney recently pleaded guilty to a $28 million investment fraud scheme.

The seemingly endless flow goes on, touching on every aspect of the real estate and investment industry, from appraisers, to real estate agents, attorneys, investment brokers, mortgage brokers, and bank managers.