Mary Jean Wall

Understanding Home Loan Costs

Many of my friends have a good handle on the costs of running a household.  Food, meals, gas, are all costs we encounter on a weekly basis and items that we look towards when cutting back on our spending.  However these is one major expense that we give little thought towards.  And one that can potentially save as a lot of money.  That is the costs associated with a mortgage loan.  And there are many factors that make up the cost of a mortgage loan.  These include the cost of the property, the down payment, the closing costs, the total loan amount, the interest rate, the loan period etc.

The mortgage loan amount is the money supplied to the lender by the lending institution.  The interest rate is the percentage amount they make for supplying the loan.  Now the interest rate can be influenced by many things including the home buyer’s credit rate, the length of the loan etc.  This all affects the monthly payment that will eventually pay back the loan.

The closing costs of the property purchase are usually in the realm of five percent of the mortgage loan amount.  This is an important consideration when calculating how much of a home you can afford.   Closing costs include many things associated with the purchase of your home – appraisal fees, escrow fees, various property taxes, title insurance and originating fees are all included in the closing cost figure.

Closing costs are unavoidable when purchasing a property.  As well as the lender there are multiple parties involved in the closing process and they all charge a fee for their services.  Therefore expect to pay the closing costs when you pay the down deposit on your home. After that you will be left with your monthly mortgage payments which are made over the period of the loan.

To help you assess the costs associated with the purchases of a property consult a mortgage payment calculator which will help you evaluate your different options and payment amounts.

Surviving the Recession

What happens when you get a toothache, and you have no dental insurance? Well, you make an appointment and head out to the dentist anyway, in order to take care of the tooth before it gets any worse. And then you take out your wallet, and pay out of pocket medical costs . Then you come home, happy that the tooth is fixed, but wondering the state of your finances as you consider the rest of the days until your next payday . Now, in past years, you may have had a savings account, or a safety net. But now, the safety net is gone and it’s a cash-based, paycheck to paycheck kind of world. Usually, that’s just fine. But when the tooth must get fixed, that cash-based world can leave you wondering about the phone bill, the car insurance, the groceries and…wondering if anything else unexpected may occur between now and payday. It’s a sign of the times. The recession and the global economic crisis has left many people living in a state of fear. Unexpected emergencies may weigh heavy on people’s time from time to time. However for the last couple of years, this has weighed heavy on the minds of most people. %0A%0AFinancial analysts are intelligent and experienced and state that people must have 3 to 6 months of living expenses tucked away in case of these kinds of emergencies. They may be intelligent, but in this world today, they are a bit naive. Real people, working overtime can not afford it when circumstances arise that cut into their already tight monthly budgets. Payday, or short term loans , are the answer when situations arise and you just need the cash to make through the week. You will be approved, there is no credit check. The money will be in your account within one business day in most cases, and you can take care of your needs until that next check comes through.