Archive for March, 2013

Mistakes to avoid in mortgage refinancing

Thursday, March 21st, 2013

mortgage refinancing, mortgagePeople often go for mortgage refinancing in order to save money. They need immediate cash and pay back interest at lower rates. Finding the right refinancer is very important along with understanding the terms and conditions. Most of the borrowers make some basic mistakes while refinancing their mortgage. Here is a look at those mistakes and their preventive measures.

Sometimes when have taken loan against your home and need more cash, you can either go for second mortgage or need more money than value of old mortgage. People think this as a risk as they will go in more waters of debt which is a big mistake. When people go for mortgage refinancing, they only compare the present interest rate with the rate that they will be getting.

The major mistake here committed is the cost which the new financer or bank will charge to refinance is completely ignored. Thus, you must always check the present interest rates, future rates, mortgage amount before refinancing the mortgage.

What is mortgage acceleration clause?

Saturday, March 16th, 2013

mortgage acceleration clause, mortgageIt is very important to correctly understand all the terms and conditions of mortgage laws especially the mortgage acceleration clause. Before signing any deal you should clear everything with the loan officer so that in future you end up in no trouble due to the mortgage acceleration clause. The clause is for the safety and security of the lender. The clause will allow the lender to demand for the repayment of the money lent on loan.

The mortgage acceleration clause contains many important points depending on the agreement. Some basic common points are:

  • The borrower cannot resell the property without the consent of the lender.
  • Some assets are kept as security or collateral for the loan. The borrower cannot sell the assets without permission of the loan lender.
  • If the borrower fails to repay the money on time, the assets will be collected by the lender and borrower will have no claim on them.

How debts can affect retirement

Wednesday, March 6th, 2013

debt , retirementDebts are bothersome for any age but being in debt cycle becomes a huge burden especially when you reach out to your retirement age. Being in debt is always stressful emotionally which hinders peace of mind and accelerates restlessness in life. Many people tend to go to serious depression when they are stuck up at loan tensions post retirement.

Actually, when you reach up to your retirement, you are left with lesser income than before and hence it becomes more difficult to repay your loans along with your daily expenses. Besides, as you grow older, it becomes tougher to seek for another job that would help in repaying the loans.

This is why the financial experts always suggest to clear off all your dues before retirement when you are able bodied and enjoying your full salary. This is especially important when you are into loan cycles with higher interest rates.