In the past most people that were buying a home either did so alone or with a partner/husband, which was the traditional way of getting a first home. However, things have really changed over recent years, and these days many people cannot afford to buy a home on their own.
This means that many have had to look at alternatives when it comes to moving out from their parents or from rented accommodation and trying to get their foot onto the property ladder, and things aren’t always easy, particularly given the difficulties that many face when it comes to raising a deposit and getting a mortgage in the current financial climate.
One of the solutions that some people have considered is to get a mortgage out with a friend, whereby both friends – or a group – are all in on the mortgage and they buy the property between them. This
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Over 24 million American homeowners could benefit from lower rates
If you’ve been living under a rock for the past few weeks, I’ll let you in on something you might have missed: mortgage rates are at an astonishing low level – hovering in the 4% range. They’ve been holding like this for several weeks.
And yet last week the Census Bureau released tables from the 2009 American Housing Survey (AHS) that revealed surprising news. Rather than dig through the tables, allow me to break it down:
- 113.5 million households in the US
- 76.4 million owner-occupied homes
- 24.1 million mortgages have interest rates above 6%.
Repeat: 24.1 million US mortgages are above a 6% interest rate! When rat
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Calls have been made for the government to put a cap on the interest rates charged on personal loans. This follows research that showed that most consumers in Britain want to see a cap on the rates of interest that lenders can charge for personal loans. The research was carried out recently by Compass on behalf of YouGov.
According to the results of the study around 68 percent of consumers believe that the government has a responsibility to protect consumers who take out personal loans by ensuring that a cap is put on personal loan interest rates. In addition to this the research found that a similar number of people, around 69 percent, wanted to see government officials promoting affordable means of credit such as credit unions.
Earlier this year a report was produced by consumer watchdog group Consumer Focus, and this showed that the popularity of ‘legal loan sharking’ was increasing. The
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Do you ever wonder if you have the smartest mortgage for your situation? With mortgage rates currently at their lowest levels since 1955, many Americans are asking themselves if they should refinance. Most homeowners admit to having doubts about their mortgage when the statement arrives. Unfortunately, most people simply pay the bill without exploring how easy it could be to have a smarter mortgage and a lower payment.
Remember, your home mortgage could be one of the largest financial investments you’ll ever make. It needs to be managed with care. Managing your mortgage can often mean keeping your eye on interest rates and other factors that can affect your payment amount.
There are a few good reasons to consider refinancing:
- If you have an ARM – Make sure you know when your rate is scheduled to adjust. If your ARM is not set to adjust for several years, it may be a good idea to refinance and lock in today’s low rate with a conventional, long-term mortgage.
- If you have a fixed-rate mortgage – Examine how your current interest rate compares to current interest rates. The Census Bureau just released figures showing that 24.1 million American’s have mortgages with interest rates over 6%. If you’re one of these Americans, you could benefit from a refinance.
- Analyze your goals – Perhaps they have changed since you bought the home you’re in and you need a more flexible mortgage. You might like to explore the possibility of taking cash out of your equity to make home improvements. Maybe you have high-interest debts you’d like to clear up? With credit card interest rates at a 9-year high and mortgage rates at 50-year lows – it could be a great time for you to refinance to consolidate debt.
To find out when you will see real savings from a mortgage refinance, first add up the costs involved. This includes discount points, processing fees, appraisal fees and title insurance. If your closing costs for a $200,000 mortgage are around $2,500 – and your Home Loan Expert can help you save $300 per month by locking in a lower interest rate – then your break-even point will come in just over 8 months. If you plan to be in the home for several more years, while continuing to save thant $300 every month, then this is a financial move that makes a lot of sense!
Economic Outlook
Investors remained cautious today, believing the current economic outlook isn’t very positive. Stocks fell for the second consecutive day today, after yesterdays report on jobs, Swiss Franc 1.0353 to U.S. Read more…