The Importance of a Mortgage Calculator

When thinking about purchasing a property, whether it is your first or fifth time, a mortgage calculator is one of the most important tools you can have to hand.

Mortgage brokers use these tools to calculate loan amounts, interest rates offered by each lender and the length of the loan term. Once you have all of the information, it will calculate exactly how many your repayments will be monthly, annually and throughout the entire term of your loan.

You should also take into account if your fixed rate changes during your mortgage term, this will need to also be calculated as rates and payments may change and you don’t want to be left in the dark.

Another benefit of using the mortgage calculator is to compare lenders rates. Say you are offered an interest rate of 4% from one lender but 3.8% from a second and 3.75% from a third, you can calculate how much of a saving you can make over your complete loan term with just a few easy steps.

The mortgage calculator, in effect, becomes your price comparison website – where you can compare mortgage terms and interest rates from the comfort of your own home. You will be able to see which lender is the most affordable for you and how much money they can save you per month or annually.

For example: A required mortgage of \$500,000 over 25 years at a 4% interest rate with one lender equals a monthly repayment of \$2,667.16. Now compare the same terms with an interest rate of 3.75% and your monthly repayments reduce to \$2,597.15. A saving of \$ 70.01 per month, \$840.12 per year and a huge \$21,003.00 during the entire 25-year term! All from changing the figure on the mortgage calculator which takes about one second. It has now saved you over \$21,000.00. Think of the holiday of a lifetime or home improvements you could make with that extra bonus!

Many underestimate the power of the mortgage calculator – while it may not answer all your in-depth questions like your mortgage broker can, it certainly allows you to keep an eye on your money from the very beginning. You will end up going into the mortgage with factual information, knowing exactly how much you can afford to spend each month. This information will allow you to budget for other household bills, such as utilities, taxes, groceries and credit cards.

Obviously as your loan term continues, you may need to refinance or your terms may change - you may even decide to change lenders half way through. This cannot be taken into account with a calculator, a mortgage broker can navigate you through these areas, but it does get you off to a good, solid start.

Some mortgage calculators also calculate the differences between principle and interest only mortgages and repayment figures; this is a helpful tool as well, giving you greater insight into the difference in monthly and annual payments. With principle and interest only payments bear in mind there will be a final balance to pay when your term completes.

If you need some assistance working out long term mortgage payments, mortgage broker Melbourne can help. You can contact them via http://themortgagereports.com/20857/mortgage-calculator-find-your-home-price

Mortgage Planning – Let a Mortgage Architect Design the Best Deal for You

The mortgage market can be daunting, especially if it is your first time purchasing a property. The market is competitive and sometimes it is difficult to understand exactly what is available to you. A mortgage broker can help you negotiate all of the confusing paperwork and rates and narrow things down into a simple, easily explained solution for you.read her latest article posted to get full information.

The benefits of using a mortgage broker in Melbourne obviously begin with the fact they have roads into all lenders. They are highly skilled in determining the best interest rates and terms of agreement on the market at any given time. Lenders are constantly changing conditions with new offers and clauses; therefore it is important that you have an independent mortgage broker in your corner to negotiate these details for you.

Independent mortgage brokers don’t have any affiliation to a particular bank or lender. What they do well is to uncover the best deals for their customers, even if the lender offers are short lived – a mortgage architect can help design the best deal for you by keeping you abreast of the situation. It can be a time consuming and confusing experience trailing from bank to bank, and you are never sure if you will receive the best deal. Mortgage brokers Melbourne helps with all of that – they are available to help you achieve the best possible terms for your loan.

Ultimately, independent mortgage brokers provide you with all of their years of in depth knowledge and advice to help you find a loan which matches your criteria, then the decision is yours to make.

Mortgage brokers do charge a fee or commission for their services, but this one off fee could end up saving you thousands of dollars in the long term. Choosing the right mortgage for you is fundamentally the most important aspect of purchasing a property – get it wrong in the early stages and you could end up with a house or apartment you can’t afford as time goes on.

Mortgage brokers help you take into account all costs and features of the mortgage - not just the interest rate. They may have gained through years of experience and relationships with lenders, exclusive deals which are otherwise not available. They will also go through your finances with you and check for affordability on your chosen property - they will just recommend a mortgage which suits your needs. Paperwork is completed by them and your application should be fast-tracked meaning your decision can be quicker than if you were going through the process yourself.

For customers considering an independent mortgage broker it’s important to receive answers to the following questions: Firstly, the length of the mortgage terms and affordability will the payments increase over time? How are the rates calculated, is there a fixed term or variable term? Is there any flexibility with payments if say, a job is lost – will the lender be flexible in extreme circumstances? Is there an opportunity down the line to refinance if you need to? Also questions like, what size of deposit do you have to put down and what is the total amount you will pay in fees?

All of these questions are valid and a mortgage broker will be able to provide you with all of the answers. Information is key – once you are armed with the knowledge you can move forward and make an informed decision. Take a look at http://www.heraldscotland.com/business/14550932.Mortgage_overpayments_in_a_low_interest_rate_environment/ for further details on how they can help.

Mortgage Direct Mail Marketing Continues to Evolve

Mortgage brokers in Melbourne have been using Direct Mail Marketing campaigns for some time; it continues to be an integral part of the business model. There are many advantages to this, as well as being less time consuming for the mortgage broker – it is also of immense benefit to the customer. The first benefit for mortgage brokers is the opportunity to promote their services before the customer has made any decisions as to who they will use to facilitate their mortgage solution.

Once the mortgage broker has established contact and begun to build rapport with the client, they can pre-qualify the customer for a loan and begin to explain to detail any lending specific lending options which would benefit the customer. For the customer this is a fail-safe way to find out if a loan would be approved and who has the best rates and terms, without the need to visit many different lenders.

The success of mortgage direct mail marketing will depend on choosing the target audience and strategy carefully. What do you hope to achieve from your marketing campaign? What are your goals? How do you make your company stand out in the crowd?

If your organization offers a specific service in your area that nobody else does – highlight this, chances are the customer will notice too.

Customers prefer mail which is directly related to a specific subject of interest; if direct marketing is actioned in the correct way they are more likely to respond. Mortgage brokers who write honest and informative articles detailing the benefits of their company, how the process works and perhaps even a subject study, will go down well in a potential client’s eyes. With direct mail marketing, the more targeted and honest it is, the more chance of success for everyone.

If the information helps to put a customer’s mind at rest, it can open lines of communication between you, especially if the customer has questions following the reading of your marketing campaign. Making direct marketing campaigns engaging, personable and open is the key to creating a lasting business relationship.

Mortgage brokers can use a customer database to create inquiries, these could stem from homeowners who are looking to move, or perhaps tenants renting property who would benefit from direct marketing to establish whether they will be seeking to purchase property in the future.

Partner up with estate agents and property developers with interests in investment portfolios and commercial properties and begin to create a new database from there. There is no denying that it is a whole lot easier for mortgage brokers and customers to make decisions when they are armed with all of the information. A well thought out direct mail marketing campaign can alleviate weeks or months of stress, and the mortgage brokers are one step closer to helping their new customer achieve their dream. There are many ways to create a marketing campaign from effective mailing, newsletters, brochures to emails.

Take a look at website http://www.bankrate.com/financing/mortgages/mortgage-rates-for-friday-june-10/ for further information on unique services they can offer customers.

2 Examples of an Acceptable Credit Score for Mortgages

One of the most important questions to ask yourself when applying for a mortgage is: Is your credit worthy? All lenders and mortgage brokers use information lodged on a credit reference database to check if you are high or low risk for credit. If your credit history is less than perfect – it is better to be upfront about it straight away, the mortgage brokers may have alternative financial options. Also, all mainstream lenders don’t score in the same way, what is acceptable to one, may not be to another – being honest about your situation ensures that no time is wasted pursuing an option which will just fall flat at the final stages.

It’s a good idea to check your credit report annually, that way any anomalies can be dealt with immediately and won’t affect your credit worthiness long term. You can apply for a copy of your credit report for free if you can afford to wait 10 days. Fast track options are also available for a fee.

Credit reports hold such details as your full name, date of birth, current and previous addresses and any employment details. If you reside with a partner and have applied for credit with them before, their name and details will also appear on your report.

When you approach a mortgage broker and application is made for your credit file, they will be looking for any “red flags” on which the lender could reject your application for a loan.
These include any defaults which are still outstanding and haven’t been repaid, any bankruptcies, court judgements, debt agreements or personal insolvency agreements in your name.

They also look at your information repayment history, if you have had financial issues in the past but have worked hard to rectify the situation and repaid any outstanding debts it’s likely to go in your favour. This is especially true if you have demonstrated regular payments and had no further issues since.visit this page for more updates.

So what is a good example of an acceptable credit score for a mortgage?

A good credit score is logged when you keep up to date on all payments; you have no arrears and already have finance which is being fulfilled. Your past credit activity, particularly over the past 12 months will be highlighted – although this may also go back for up to 5 years.

Lenders will acknowledge a good credit score if you have employment stability in a low risk category job, if you have stayed in the same role for several years it shows your commitment and character.

Another good example is residential stability –do you already own your own home? Do you have finance which is being fulfilled? Have you stayed in the same property for a few years or do you move around a lot? Mainstream lenders like stability in all aspects of your life.

Each lender uses a different credit scoring technology – they have their perfect customer patterned out in a set of algorithms and this ultimately decides whether you get a mortgage or not. Some lenders are more lenient and allow for a few blips on the radar, but you may find their interest rates are slightly higher because of this.checkout latest news at http://www.telegraph.co.uk/business/2016/06/10/banks-face-crunch-from-falling-house-prices-cheap-mortgage-rates/

Don’t be disheartened if you have clean credit and have been rejected by one lender. It may be that you work in a high risk industry or don’t have a credit card balance and their algorithm wasn’t certain. In these cases, that lender wasn’t the right fit for you – your mortgage broker in Melbourne will help you find one which is.