Category: Loan Agreements

By Gregory Van Duyse

Is it possible? Something better than getting the best mortgage rates! Yes. I know its surprising and that it goes against what everyone says but it is true and

I can prove it.

First lets define what we mean by the best rates and the financial value that we can attach to shopping for the best rates. The best rate is the best mortgage rate available for you by any lender.

The advent of super mortgage brokers and the Internet has forced the mortgage industry to become very competitive. Each lender has his best rate and most of the time its within 0.06% of the rates of major banks. Shopping with a mortgage broker makes this easy.

The financial impact of getting a better rate of 0.06% on a 100,000$ mortgage is 1028$ over 25 years or 41.12$ per year. That is not what I call super savings!

Something better than the Best Rate

Dr. Milevsky at York University (Toronto, Canada) published a stunning report. He compared two mortgage strategies between 1950 and the year 2000 and found that:

88% of the time one strategy was better (money saved)

the average savings was 22,000$ on a 100,000$ mortgage amortized over 15 years.

Now were talking. Saving 22,000$ in 15 years, thats 1466.66$ per year. Its not hard to see that choosing the right mortgage strategy is a LOT more important than simply shopping for a better rate.

The real conclusion of the study is not that one mortgage strategy is always better. Its not! The lesson is that choosing a strategy is very important.

[Note: the conclusion of this study is applicable for Canadians and Americans. The interest rates during 1950 and 2000 are very similar and the different strategies are available in both countries.]

What should you do?

Selecting the best mortgage strategy is not as simple as calling around for the best rate. You need to:

analyse your situation and your long term objectives

analyse the current interest rates and where they are likely to go in the next 10 to 15 years.

choose the best strategies based on that information

I suggest that you take the time to find a mortgage broker that does more than shop the mortgage rates for you, but a broker that will take the time to set up a plan to save you money over the entire life of your mortgage. Once you have found a good broker, ask him to present you with 3-4 strategies and his recommendations.

It could save you a lot of money.

About the Author: Gregory van Duyse, AMP is an Accredited Mortgage Professional in Canada and has written a series of articles on choosing the best

mortgage strategies (hypothque)

. Visit:

informezvous.com

Source:

isnare.com

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By Willie Rhoades

When the need for many arises, and this happens quite often nowadays, people turn to lending companies or banks in order to secure a loan. Among the many kinds of loans that people make, one of the most sought after are short term loans. By the words “short term” this type of loan is paid within a short period of time. This is quite helpful for people who seek to have a way to make ends meet just until their payday arrives.

There are different kinds of short term loans available nowadays. You can get one from different lending companies through the internet or you can get one from a bank that offers this kind of service. Since this loan only deals with small amounts to be paid in a short period of time, the approval is quite faster compared to long terms loan which can take days to several weeks to get an approval. Short term loans can be processed upon application or within twenty four hours.

Also, another advantage of this type of loan is that they often don’t require any credit check. Even if you have a bad credit score, most lending companies will still allow you to get a loan provided that you have presented them something that ensures that you are earning money. By having a constant source of income, the lenders will believe that you will be able to repay your debt. However, if you are planning to get a short term loan from the bank, they will go over your credit score. They may also require collateral depending on the amount of money that you are borrowing.

It is also quite easy to get a loan of this type. You can do it in the comforts of your own home by visiting different online lending companies that can offer such. You will only need to fill up some information necessary and your application will be processed almost immediately. Thick documents and other paper works are no longer necessary.

It is quite useful, especially during emergencies where quick cash is needed. It also has its own setbacks. One is the high fees that come along with it. If you have borrowed an amount of a $100, you will need to repay the principal amount plus the interest rates and other fees which often reach about 30-40% of the borrowed money. For the $100, you will need to pay the principal amount plus $30 – $40 more. That is why short terms loans are not highly recommended, except for cases when the need for cash is really urgent.

There are several types of short term loans which you can apply for depending on your needs. There are loans that are designed to assist students in their financial needs while being in college. Another type is a payday loan. This type of loan allows you to borrow an amount of money and pay it back on your next payday. Often, the period of the loan is from 15-60 days, depending on the policy of the lender.

About the Author: Willie Rhoades is a finance analyst who enjoys writing about

bad credit credit cards

and

short term loans no credit check

as well as other related topics.

Source:

isnare.com

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