Amortization Plan

Your Mortgage Amortization Schedule May Contain Shocking Details

admin — Tue, 31 Aug 2010 22:04:57 +0000

When many first-time homebuyers get their mortgage amortization schedule for their proposed
loan, they file it away with all kinds of other paperwork they never intend to look at. This can be
a huge mistake for several reasons. The biggest, perhaps, is the simple fact not paying attention
to this important document can cost you a ton of money.

A mortgage amortization schedule is nothing more than the month-to-month breakdown of what
a loan costs. You can use an amortization schedule calculator to prepare one. The schedule shows
exactly how you can apply monthly payments to a loan as interest builds up, and you eventually
pay off the loan. The first-time buyer who pays attention to the mortgage amortization schedule
will readily see that a $100,000 loan will cost a whole lot more than $106,000 to pay off at a 6
percent interest rate. Having a good understanding of the mortgage amortization schedule and
how it works for a particular loan can arm a homeowner with facts you might need down the road
to help guide financial decisions. For example, understanding exactly where you are on a
mortgage amortization schedule and finally realizing greater principal reduction with payments
might steer you clear of a refinance when it could end costing you a bundle in the long run. It
might also help guide use of any extra cash that might be available. Principal reduction
payments, for example, can take a basic mortgage amortization schedule and throw a big monkey
wrench into it by taking away some of the principal the lender calculates interest payments
against.

Anyone who has never seen a loan amortization schedule will likely be in for a start the first time
they review one. They can look rather scary. Even if you find the lowest rate loan possible, these
schedules show little principal decline during the first few years of a loan. This means a $1,000
payment a month over the course of a few years might only reduce principal by a few thousands
dollars even though you paid out $24,000. This happens because you normally pay for a large
chunk of the initial compounding of interest. Since the principal amount is at its highest,
compounding at a rate of 6 or 7 percent can add a huge lump to what the loan costs.

As a mortgage shopper, you should pay attention to the amortization schedule when it’s given to
you. Doing so can help guide decisions and might even give you some great ideas for paying off
your mortgage quicker. If you are looking at a simple interest mortgage, lenders will allow
principal reduction payments. Banks don’t love this necessarily, but they will apply the payments
to reduce the principal if told to do so. This can quickly change the mortgage amortization
schedule and have it working in your favor and not the bank’s.

By: Marvin Cains

Boat Loan Calculator

admin — Mon, 30 Aug 2010 18:45:00 +0000

If you’re looking for a boat loan calculator, there are a lot of websites out there who are more than willing to offer you an estimate. When you’re thinking of buying a boat, it can be a little confusing looking at all the different financing options out there. Does it really make a difference who finances the boat? Of course your lender will affect the loan you get for your boat; you want to make the right decision when that much money is involved. So what options are there?

A bank is usually the first place people think of when they want to get a loan. “But do banks really loan out money for boats? I thought banks just loaned money for homes and businesses!” Most banks are willing to lend money for boats, provided you have good credit. And the great advantage of using a bank is that they’re local, and you know you aren’t going to be swindled out of your money by some scam company.

Credit unions can also be a valuable option when looking for a boat loan calculator. Comparing credit unions against other loans, you may be able to get a better deal with a credit union – provided you’re a member. Credit unions will usually be willing to give good discounts and special deals to members, so if you’ve already got a membership with a credit union, make sure to include them in your quotes. It could save you a lot of money, simply by considering the financial options you already have.

There are other lenders, of course. Banks and credit unions don’t rule the financial world. There are many outside lenders who specialize in boat loans and other marine finances. These financial companies are good options to look at for boat loans, because they’re well acquainted with the marine business. They’ll know just how much your boat is worth, how much you should be paying, and how you can keep your payments at a minimum.

For the same reason, you might want to consider financing with your local boat dealer. The salesman who sells you the boat is going to be a much better boat loan calculator than any website application, because that salesman knows exactly how much you’re spending on the boat, and you’ve been working with him or her the entire time. And since the boat sale relies on a good boat loan, your dealer will be more willing to get you a good rate, because they know they’ll only sell the boat if you can afford to buy it.

By: Eli Adams

Your Loan Modification Has Been Declined – What Now?

admin — Mon, 30 Aug 2010 18:35:38 +0000

Your lender just gave you the bad news. Your loan modification has been declined, and you are trying to determine the next step. You, definitely, don’t want to have to deal with a foreclosure, but are unsure what It’s important for you to understand that you’re not alone. Statistics show that approximately one in seven homeowners are behind on their mortgage payments and over eighty percent of loan modifications are being declined. That means that the odds of being in your situation are about the same as being left-handed. You have a great deal of company. With that much consumer hardship, there are more options today than ever before! Whether offered by your own lender, or the Federal Government, programs exist to assist struggling borrowers through these difficult times.

The first thing to consider is whether or not to try and apply for the modification all over again. Your loan modification could have been a really bad idea from day one. Unless your lender has offered you a fixed rate loan with ample principal reduction, being declined for a modification could be one of the best things to ever happen to you! If your mortgage balance is more than twenty percent greater than the value of your home, a loan modification could add fifteen years or more to the length of your mortgage. If you want a real wake-up call, find an online amortization calculator and see how long it takes to pay your loan down to your current home value. If you owe $250,000 on a home worth $200,000, you will owe more than $200,000 until the middle of 2029. That’s right, your two year-old will be able to buy you a drink to celebrate!

Depending upon your overall financial position, bankruptcy can be a viable alternative to a foreclosure. If credit cards, personal debt, judgments and other bills are adding to your mortgage woes, then bankruptcy may be an integral part of a solution. Thankfully, obtaining the guidance of a good bankruptcy attorney can be a great way to help get yourself back on track. Although bankruptcy can forgive large amounts of debt in one fell swoop, the credit effects from bankruptcy can last as long as ten years. With that in mind, bankruptcy is an extreme solution that should be approached very carefully.

I have found that, most often, homeowners can benefit greatly from successfully completing a short sale. You can take advantage of the current anti-foreclosure attitude in Washington to really get back into home ownership as quickly as possible. Many lenders are offering incentive programs allowing you to sell your home for less than what you owe, and still walk away with money in your pocket. One lender is even offering qualified homeowners a cool $5,000 in relocation assistance money! Even the United States government is getting into the game, through the HAFA program. Under HAFA, you can get a price approved before even putting your home up on the market, perform a short sale and, if you qualify, get $3,000 of money at closing. In addition to being able to purchase a new home in as little as two years, your credit won’t suffer the same kind of catastrophic effects as it would from a bankruptcy or foreclosure. Employing a Realtor specializing in short sales is a great place to start. They are up to date on all of the current rules and regulations about short sales, don’t charge any up front fees and don’t make any money at all until they successfully complete your short sale. Finding the right Realtor to represent you is very important to make sure that you achieve your goal of being released from all financial liability from your lender.

The most important thing for you to remember is that, whatever direction you choose to go, choosing a licensed professional who specializes in your area of need is the only way to go. Make sure to personally interview any potential candidates. State license boards, professional organizations and trade groups all keep diligent records that are readily available to anyone seeking information about a particular practitioner. This is your financial future that you’re addressing here. You can’t be too careful. A qualified professional will want you to know all about their business history and qualifications! Real pros are proud of their accomplishments and more than happy to share them openly. With a little bit of diligence and care, you are well on your way to bringing piece of mind and financial stability back into your life!

By: Jeremy Colonna

Mortgage Calculator

admin — Thu, 26 Aug 2010 12:55:12 +0000

Using a mortgage calculator is the best way for you to figure out your monthly mortgage payments. Buying a house you want to always get the best deal that you can and negotiating a lower price is advisable. In the end the type of house you can afford is going to be determined by the monthly payment.

Mortgage calculators are easy to find and they can be a great tool when you are looking online at house prices. Try not to get hung up on the overall price of the house because the amount you pay each month is going to make the difference in whether or not you can afford it. Using a calculator is going to help you find out the monthly price of any home.

They are easy to use because you just need to enter simple information such as the price of the home, the amount of interest you will be paying on the new home loan and finally the length of the loan. The most common loan is a 30 year loan but in some cases people do 15 year and even the rare 40 year loans. You can use the mortgage tool to help you see what the payment will be for any length of time.

Remember that when you are looking to buy a home you need to know what it is going to cost you on a monthly basis. Everyone has a set amount they have to spend each month for living expense. You are going to fit your mortgage into that budget just like you did when you rented.

By: Bryan Burbank

Amortization Schedule Breakdown and Understanding Principal Vs Interest

admin — Sat, 21 Aug 2010 16:13:02 +0000

Amortization Schedule Calculator

Understanding an amortization schedule can be very useful. A mortgage amortization schedule is broken down on a monthly basis to show you exactly what you’re paying the bank each month and how much you still owe. I could probably survey 100 people and 50 of them wouldn’t even know how much they owe on their mortgage. These people are going to be taken advantage of at some point in the mortgage process. With some basic knowledge on mortgage calculators and interest rates you can understand when someone might be trying to trick you.

Your mortgage is recalculated each month based on how much principal is paid down. Your mortgage payment will always stay the same, but the principal goes up and the interest will come down as time goes on. Example below:

Enter this information into a mortgage calculator;

Mortgage amount – $100,000.00

Fixed Interest Rate – 6.0%

Years – 30

Based on that information you will see that the monthly mortgage payment is $599.55 and over the course of 30 years you will have paid $115,838.19 JUST in interest! That’s more than the cost of the home itself! It’s only natural to try and reduce that number. First, we need to understand it by looking at the information from the mortgage calculator.

The graph below shows you the breakdown of each payment you make over the first year.

Monthly Payment – $599.55

Month Interest Payment Principal Payment Remaining Balance

$100,000.00
1 $500.00 $99.55 $99,900.45
2 $499.50 $100.05 $99,800.40
3 $499.00 $100.55 $99,699.85
4 $498.50 $101.05 $99,598.80
5 $497.99 $101.56 $99,497.24
6 $497.49 $102.06 $99,395.18
7 $496.98 $102.57 $99,292.61
8 $496.46 $103.09 $99,189.52
9 $495.95 $103.60 $99,085.92
10 $495.43 $104.12 $98,981.79
11 $494.91 $104.64 $98,877.15
12 $494.39 $105.16 $98,771.99

First of all, in the amortization schedule the “Interest payment” and “principal payment” columns will always equal your monthly payment amount of $599.55. Some of it will go toward the $100,000 that you owe, and the rest of it goes toward interest.

Notice that the amount you owe is lowered by the amount of principal you pay each month (100,000 – 99.55 = 99,900.45) If you pay an extra $200.00 toward principal then it would be 100,000 – 99.55 – 200.00 = 99,700.45.

The interest payment goes to the bank for loaning you that specific amount of money. The bank tells you the yearly interest rate (6%) for added confusion because it’s actually calculated monthly. Take your yearly interest rate and divide it by 12 (12 months). You can plug those numbers into a mortgage calculator or see the graph above. 6% / 12 months = 0.50% per month. So you owe 100,000 x .005 (.50%) = $500.00 in interest for the first month (See above graph). So the less money you owe the bank, the less interest you pay each month. That’s why paying principal down faster is better.

Like I said before, each month the mortgage payment is recalculated so the amount of principal you pay each month is up to you! No matter how you look at it, you owe the bank $100,000.00 and while you owe that money they want something in return (Interest). I believe banks are very fair with the interest rates they offer, whatever they might be. Otherwise you would have to save $100,000.00 to buy a home, rather than just the down payment, which means most people wouldn’t ever buy a home at all.

By: Chris G Bell

9 Steps to Get Out of Debt – Part 3

admin — Thu, 29 Jul 2010 19:04:54 +0000

Step 3 – Analyze Your Debt

The next step is to figure out exactly how much you owe. First, make a list of every debt you have. Not just credit cards, everything. Credit cards, department store credit, mortgages, car payments, unpaid past-due bills, student loans — everything.

You do not need to count items such as recurring bills like electric, gas, cable, etc. These are not debt, they are recurring expenses. At any time you could shut these off and not owe any additional money, although it may make life unpleasant, to say the least.

Once you have a list of what you owe, you need to determine what your remaining balance is on each item, the current interest rate and your monthly payment for each debt. On most loans you’ll be able to find this information on your monthly bills. However, you may have to make some phone calls to get this information for other debt. Add the remaining amount on each of these items together, this is your total amount of debt. Also, add together your monthly payments for each of these debts to determine the total monthly cost of your debt.

Now, you need to determine how much this debt is going to cost you if you continue making the payments you currently are. You can do this by completing an amortization table for each debt. Don’t worry, we’re not going to make you do this yourself, you can use our amortization calculator located at destroydebt.com. This will tell you two key pieces of data: how much each debt is going to cost you, and when it will be paid off. Add the total cost of each loan together; this is the total cost of your debt. This number can be scary at first, but don’t get too worried yet, this should be the last time you see this number.

If your total monthly debt is greater than 50% of your net monthly income, or you have found yourself in a situation where you are unable to pay your bills and have fallen behind by several months, I would suggest you stop here and seek the advice of a professional financial counselor. Otherwise, continue on.

By: Jeremy Zongker

Free Online Calculators Help Determine Mortgage Payments

admin — Wed, 28 Jul 2010 11:45:14 +0000

The slump in the real estate market has made homes more affordable, yet many people are struggling to maintain their current mortgage payments. As a result, homeowners now have several different options to assist them with making their mortgage payments. Under certain conditions a person can refinance, reducing their monthly payments to a manageable amount.

If you are a homeowner wanting investigate your refinancing options, you will benefit from using free online calculators before you contact your mortgage company. These scientific calculators will give you a snapshot of what you can expect to pay based on a number of different factors, including the interest rate, monthly payment amount and the number of payments required to pay off the loan.

One payment structure that is different from other loans is the amortization loan. Amortized loan payments have a fixed interest rate. You can use free online calculators at different real estate and mortgage lender web sites to determine whether or not you can afford these types of payments. These payments are calculated by dividing the principal amount of the loan by the number of months agreed upon for repayment.

So, if you wanted to get a 30 year fixed mortgage loan, you would have 360 months to repay the loan. The interest is added to the principal amount, and each payment is applied to the interest first, then to the principal amount. If you send an additional amount with your payment, you must tell your mortgage company to apply the extra amount to the principal. This will help you save money long-term and reduce the life of the loan. Otherwise, it will take some time before the interest and principal payment amounts equalize with an amortized loan structure.

By: Mike Trump

Mortgage Amortization Schedule – Why it is Cleverly Set Up to Work Against You

admin — Thu, 22 Jul 2010 03:27:09 +0000

I get this question all the time. If I have a good mortgage and pay bills on time, why should I even care about taking any further action with my mortgage?
Good question.

The way the bank charges you interest is sophisticated. You may not even realize you are paying more than you have to and this is not your fault.

Banks set up their system so that you end up spending more on your monthly mortgage repayment towards interest rather than principal in the early years. For example, if you have a $1,200 monthly repayment, it common to spend $1,100 in interest and $100 in principal.

You can go directly to bankrate.com and use their mortgage calculator to see how much you are paying in principal and interest each month.

However, did you know you can and have the right to change the situation in your favor each month?

You could end up spending $900 in interest and $300 to principal should you choose to with a little more applied towards your principal payment every other month.

Even an eagle-eye read-through of your bills and your mortgage statement each month will not catch this method.

There is a simple method that will allow you to allocate more of your mortgage principal to you mortgage balance rather than interest. The key is to use the mortgage acceleration method.

You set up a Home Equity Line Of Credit (HELOC) account and draw down just the right amount from your HELOC to pay off your mortgage. Once the mortgage balance is paid down to a certain limit the bank reallocates more of your monthly payment to principal rather than interest.

This may sound confusing but you can search Google on this and learn more about the mortgage acceleration programs

Staying on top of your mortgage finances can sometimes feel like a full-time job.

And most of us already have a lot to deal with. In times like this, it is easy to get tempted by promises to find quick fix solutions that will help you take control of your situation.

By: Neil Venketramen

RV Loan Payment Calculator – Adding Up the Costs and the Savings

admin — Tue, 20 Jul 2010 06:05:44 +0000

If you are in the market for any type of RV financing, an RV loan payment calculator can be an invaluable tool to help you begin your RV lifestyle of adventure-it is a lifestyle of freedom, independence, travel and almost unlimited destinations. When you look at the sum total of the benefits of owning an RV you may want to look at an RV loan payment calculator right away so that you can get an idea of how you can make this adventurous lifestyle a reality. One of the best things about an RV loan payment calculator is that it is easy to use. The information that you get when you enter just a few numbers will help you to decide which RV is right for you.

How do you use an RV loan payment calculator to find your perfect RV? It works in much the same way that other loan payment calculators work. You need to enter the estimated amount of the loan that you will need, whether it is for a new RV, a used RV, or even a refinancing loan. Then, you enter the length of financing that you would like and hit “Enter.” The RV loan payment calculator should already have current interest rate information available. Within just a few seconds, the RV loan payment calculator will have your estimated monthly payment figured out. If the figures don’t “add up” for your budget you can always change them and try again.

Some other things that you will want to consider when budgeting and planning for an RV is how it will fit into your budget. How much disposable income do you have? Do you want to buy a new or a used RV? You also should think about expenses such as fuel, RV insurance, and travel expenses. But, remember you will be saving on some travel expenses as well such as airline tickets, restaurant food, and hotel reservations.

An RV is a big investment, but if you are prepared with the facts and information you need about the costs and advantages of an RV, you will not be disappointed.

By: Julie Jacobs

Home Improvement Loan Calculators

admin — Sat, 17 Jul 2010 22:55:43 +0000

Home improvements loan are paid off within a specified period of time. They are considered amortized loans, since they are to be paid off by a gradual shrinkage by equal monthly installments.

In the age of information technology, there are many online loan amortization calculators available that can help a borrower weigh the various loan options he/she has and plan the payments accordingly. Home improvement calculators are available abundantly on the internet. These calculators offer ease in trying out various combinations of the payment period.

When using these calculators, one just needs to key in the loan amount, interest rate, and the conditions of repayments. The online home improvement loan amortization calculator gives the borrower the complete amortization table within few seconds; the table tells him/her how much of loan is being paid off. The breakdown of the monthly payments is given over the life of the loan.

Some of the more advanced home loan calculator programs allow a borrower to calculate various ratios like the debt-to-income ratio in different payment scenarios. By using these home improvement loan calculators, one can find out the amount to borrow, how much to put down, and the tax implications. With the help of home improvement calculators, one can make decisions about opting for fixed- or adjustable-rate mortgages

One should use variations of the basic home loan calculator to decide whether and how to consolidate debt. One can also calculate how long it will take to reach the “break even” point. The impact of early payments on your home loan can also be easily determined.

Thus, with the help of online home improvement calculators, it is very easy to plan the loans.

By: Alison Cole