How to use a repayment mortgage

The most traditional type of mortgage available is the repayment mortgage. However, with more and more types of mortgages on the market, this traditional type is becoming less popular. If you are in the market for a mortgage, then you should seriously consider a repayment mortgage. If you are unsure about what repayment mortgages actually are, then read these useful tips about repayment mortgages.

What is a repayment mortgage?

A repayment mortgage is also known as a capital mortgage, and refers to any type of mortgage in which you pay back both the actual money borrowed ($1500-2000) and ExtLoans, Inc. interest each month. You pay back a little part of each until your entire debt is paid at the end of the loan term. When you begin paying your mortgage, you will be paying a higher percentage of interest, as the amount owed is larger. As you reduce the amount owed, the percentage of capital you pay back increases.

Why get a repayment mortgage?

Getting a repayment mortgage really does make sense if you can afford it. Repayment mortgages are the only type of mortgage that guarantees you will own the property at the end of the loan term, as long as you have kept up with repayments. This is because you are paying back both the interest and the capital you borrowed. Although it might seem like you are spending more, you are actually paying for your property rather than just the interest. Repayment mortgages have some other advantages over endowment mortgages. Although your repayments are lower for endowment mortgages, you can never be sure how well your investment fund will perform. If it performs badly, you could lose your home because you are unable to make the final capital payment. With a repayment mortgage you don’t have to worry about stock market performance, and know that your repayments are helping you to pay off your debt each month.

Are there any disadvantages?

The major disadvantage of a repayment mortgage is that you have to pay more back each month than you would with an endowment or other interest only mortgage. The amount of money you need to pay back might be more than you can realistically afford each month, and so repayment mortgages might not be an option for you. Also, as the amount of interest decreases with each payment, your tax relief will also be reduced.

Are there alternatives?

If you want to get a repayment mortgage but feel that the repayments are too high at the moment, then you can get repayment mortgage that has a low start capital amount. This means that in the first few months or years you pay only interest, and then later on you pay an increasing amount of capital. This is good for first time buyers who know that their income will increase in time. However, because you are making lower payments now, the payments in the future will be even higher. If you can’t afford the monthly payments, then you should look at other types of mortgage. However, if you can afford to get a repayment mortgage, you should definitely do so. You will have peace of mind knowing that if you make all of your payments then you will pay off your debt and own your property outright.…

Pay Down Credit Cards That Are Maxed Out First

Getting a great rate and the lowest fees on loans and mortgages often requires a FICO credit score of 700+. Walecia (sweet name) posted a tip to help boost your credit score if it’s below 660.

Pay down the cards that are maxed or almost-maxed first. Naturally, lenders are weary when they see credit cards that are maxed or close to being maxed. You get a black mark on your record if you have a balance on your card that’s over 50 percent. For some supplemental reading, check out Flexo’s Raise Your FICO Credit Score.…

Be smart and reduce your car insurance

As you know car insurance is compulsory, however, what is not is the need to pay more than we need to. We all know that by looking around and getting quotes off different insurers can really pay off.

Many of us ignore the basic items that can make a massive difference to our car insurance prices.

At first glance many people baulk at an insurance quote with a higher excess than normal. By having a higher excess on your policy means that you will be paying a lower yearly premium. It would be wise to keep aside the excess amount on your policy in case of any accidents, this way it won’t hurt so much!

I realise this may sound strange but if you are considering a car, then it may be prudent to check what the insurance may be. By taking two like for like cars with the same engine size but different makes, you would be surprised at the difference in group ratings there could be.

There’s a popular TV show currently on MTV, Pimp My Ride, where it follows a groups efforts in sprucing up and modifying their cars. Quite frankly if this is done, your insurance premiums shoot up. Many insurers will refuse to give you a quote and the ones that are left crank up the premium.

Insurers reward drivers who have a low annual mileage. By simply cutting down on the use of our cars by participating in a car share scheme can have appositive effect on our insurance premiums. Local government are continually improving public transport and at the same time discouraging drivers from entering inner cities. Car sharing schemes and public transport may have further benefits than just reducing your car insurance quote.

Always try and park your car in a garage or at least off road on a driveway, this will result in significantly lower premiums

Instead of spending money on a top of the range sound system for your car, it would be wiser to make sure your car is equipped with an alarm and immobiliser, especially if you live in a higher crime area like a city. This will result in a favourable and lower quote from your insurance company.

Try and keep hold of your no claims bonus, as this will make a huge difference in your car insurance premium. The higher no claims bonus you have the higher the discount will be on your insurance quote.

When you add more drivers to your policy this can work out more expensive. Try and keep additional drivers to a minimum if any at all. The reserve of this could actually work in your favour. If you are under 25 years of age, insurance companies will regard you as a high risk. It could then be worthwhile to have a parent act as the insured with yourself down as an additional driver.

There’s no denying that fully comprehensive insurance is the option to go for, however, in some cases due to the age and value of the car this can sometimes be the wrong option. If your premium quote comes in at more than a tenth of the car value, it may be better to lower the cover to third party.…

Cut Recurring Expenses To Save Every Month

For the frugal-minded, saving a couple of dollars is a reward in itself. But even the less budget-conscious would agree that saving a few dollars every month is a worthy endeavor. Since most of our recurring bills are usage-based, we stand to save plenty if we can get creative. Here are a few uncommon ideas for slashing those bills and racking up those savings.

Call your cable company

There is a good chance that you are paying too much for your cable TV and internet services. While many frugal-minded thinkers advise you to cut your cable bill completely, since there are so many online video entertainment services, many of us still enjoy traditional TV. But even we stand to save a few dollars.

The simplest way to accomplish this is to call customer service and tell them you want to cut services and lower your bill. Right off the bat they might accommodate you, signing you up for various promotions that will save you money without cutting service. Even if they don’t, you can always start removing the services you don’t need. They’ll let you know right away how that will affect your bill.

Switching cable companies can help you save, too. The cable space is highly competitive, and almost all providers offer new-user promotions. Even more, they might offer you an additional discount for switching from a competitor. Those savings usually expire after a year or so, but after that you can always switch back.

Replace energy consuming appliances

If you have an old oven, air conditioner, refrigerator, or furnace, there’s a good chance that it’s costing you every single month. These old appliances consume much more money than their modern counterparts, which reflects in your monthly electricity bill. Replacing them with newer, energy efficient models can cut that bill dramatically.

Yes, these require up-front costs — in the cases of the furnace and refrigerator they can be significant. But the money they save you will start to add up. If you’re in your home for the long haul you’ll recoup your money and then some. (And remember, you’ll have to replace these at some point anyway.)

Here’s one appliance that you might not think of, but that can save you: your water heater. These are notorious for breaking and springing big costs on homeowners. If you replace yours with a tankless electric water heater you not only get a more reliable appliance, but you also will save on your monthly electric bill. Plus, as you can see, the prices aren’t all that bad.

Watch TV elsewhere

Your TV eats plenty of electricity. Watching less of it will help cut your electric bill. But we’re not looking to make big sacrifices in order to save money every month. We’re just trying to find creative ways to save while maintaining a similar mode of life. The great thing about TV these days is that you don’t need to actually watch it on a traditional TV.

Tablet computers and even laptops are now equipped with apps that let you watch your home TV. You typically have to be within your home to enjoy these services, but if you do you can watch TV while using a device that consumes less electricity. A tablet, for instance, uses less energy than a lightbulb when charging. Your laptop uses about the same amount. A TV uses much more.

There’s a smaller screen, of course, but you’ll also be closer to it. This might not be feasible for group viewings, but if it’s just you watching TV you might consider using a portable device in order to save energy.

With these three suggestions alone you stand to save significant money on a monthly basis. In the long haul these savings can be dramatic. It will certainly be worth the small sacrifices and up-front costs involved.…

Always Buy Used Books To Save Money

Buy books that are used. Most are in good condition. You’re buying the book for the words so don’t worry that the spine is a little bent or the pages are a bit folded. I just bought a $35 dollar book on for $15 bucks used.

Some people are irked by buying books used. They’re afraid that the previous owner had abused and neglected their book before putting it on the market. Rest assured: They’re nothing wrong with most used books. The previous owner is selling it because they need the money. Or they do what I do and buy books and then not read them.…