Financing your self build home when using Modern Methods of Construction

Self build mortgages have been around for a number of years, offering finance for the ‘yet to be built’ with features such as lending on the land (so you can keep your savings back for the build) and releasing funds in stages, as the build progresses, so you don’t have to borrow the whole amount from the outset and pay interest on it all from day one. These mortgages are not just limited to brand new projects, and can be integrated into a conversion of an existing property.

If you’re considering building a home and using a Modern Methods of Construction (MMC) technique, you may be wondering what options you have and how mortgages for MMC work.

Firstly, MMC is seen as the new generation of prefabricated housing but vastly different to the prefabs used to rebuild housing stock following the Second World War. MMC schemes are being used by both developers and owner-occupiers who could benefit from the cost and time savings of mass production, but retain flexibility and control over their build.

The government is keen to support MMC in order to address the UK’s chronic shortage of housing. The Autumn Budget 2017 said “the government will use its purchasing power to drive adoption of modern methods of construction, such as offsite manufacturing” and the Office of the Deputy Prime Minister and the Housing Corporation stated it is “… a process to produce more, better quality homes in less time.” Continue reading %s

Tips on Selling Your House

Selling a house can be a very stressful and demanding experience, but it can always be made easier by doing certain things. Whether this is your first time selling a house or you’ve sold many houses before in your time, you need to think about the market which you’re in at the moment. The house market changes on a regular basis, so there are many things to consider. Without putting in the right amount of effort, you might struggle to sell your property. Here are some tips on selling your house:

Make renovations and upgrades

Renovations and updates are important in a house, since it makes it look more new and modern. If you have old appliances in your kitchen which look dated, have them looked at by a professional or change them entirely. You should think about your washer and dryer, and if you believe they need to be replaced, go out shopping for appliances. This will make it easier for the new owners too, since they’ll have brand new appliances. Your carpets should be in good condition too, so unless you’re prepared to have a deep cleaning company come and make them look great, you should buy entirely new carpets. Repainting the house can immediately make it feel fresher and more updated, which are two very attractive qualities that potential buyers look for.

Selling House

Add embellishments

The first impression of the house is the most important thing, since that is when most people decide whether or not they are interested in the house. You should think about setting out some flowers, but without overdoing it. If you’re conscious that people might have allergies, such as hay fever, buy some artificial flowers instead. The house should also smell very pleasant, and in between visits, re-spray the home with an air freshener.

Keep it tidy

Make all the beds in the morning before the viewers arrive, and ensure that your clothes and toys aren’t lying around. Any areas which are used a lot, such as the kitchen, should be cleaned throughout the day and on a regular basis. Unfortunately, when you’re selling a home, you can’t afford to be lazy! Turn on the lights before you leave the home, so that it looks bright and homely for anybody who comes to look at it during the day. You might also like to leave a couple of windows open to keep the house airy and cool, especially in the summer months.

Stay Focused On the Real Prize – Get Started With Loan Modification!

Mortgage modification is the goal that we’re all going after, but very few people actually understand the tins and outs of the process. This guide strives to correct this problem and give you real solutions on how to actually take care of the problem.

First and foremost, the simplest definition of mortgage loan modification that we can find is when you get the original agreement that you signed modified to much more favorable terms. This is usually due to a change in your financial situation. Instead of seeing the house go on the market as a foreclosure, you can turn to mortgage modification — but only if your lender is willing to play ball. They may or may not depending on a wide variety of factors. There are some federal guidelines now in place to help you really figure out your options and what you can do in the days, weeks, and months ahead.

You have to realize that the mortgage lender really doesn’t want to modify your agreement. They would rather make temporary arrangements, not permanent ones that are actually going to save you money in the long run. When you save money in this manner, you are actually costing them money. Any loan can be modified, but it’s really up in the air in terms of whether or not you’re really going to get it accepted.

mortgage loan modification

There are a few different types of modifications out there. You can get your interest rate reduced, or a modification of how the interest rate is computed. You may go from a floating to a fixed rate.

There can also be a reduction in principal, but this isn’t always in season. The lender may try to work things out differently. There’s also a way to lengthen the loan term, which would bring your payments down as well.

There can be a reduction in late fees as well. The modifications can be combined — you can get your interest rate reduced as well as having your monthly payment capped to a percentage of household income. Continue reading %s

Why Yes, You Can Get a Mortgage While Self Employed

Let’s get one thing out of the way before anything else gets said: running a business is a lot of hard work, and you should be rewarded for that hard work. You should be given a chance to really get things off the ground. Taking a risk and running your own company can be stressful, but plenty of people find it worthwhile. Make sure that you’re not giving up your chance to stand in the sunshine.

Owning a house is an exciting experience, and self employed people don’t have to sit on the sidelines. Here’s how to get things going.

The biggest thing that you can do to make your dream come true would be to get an independent broker. This is someone who doesn’t just represent one mortgage lender, but many different lenders. They can help you actually get the mortgage you need to buy the house you want.

These mortgages are actually self-certified, which means that you disclose how much you make.

Get a Mortgage

As the economy has weakened, many brokers are looking for you to verify the income that you stated on paper is really what you’re making. In order to stand out from other applicants, you need to make sure that you have an independent way to verify your income. Your tax returns over a period of 3 to 5 years will help give the broker a general idea of how much your business is making, as well as how much money you have at your disposal.

If you can provide this information along with another sheet that shows the growth of your company and the projected income, it will go even farther in showing that you’re able to afford the house. This is something that even traditionally employed people need to learn: you have to be able to make all of the payments for decades to come, not just the next year. People make the mistake of getting caught in the excitement of buying a home, when they should make sure that they have the means to truly take care of it.

A quality mortgage advisor is a licensed professional that has handled more than one self employed case. FSA qualification is an absolute must for the cream of the crop, so make sure that you do your own due diligence carefully. Specialist lenders are going to want a little more information than general mortgage lenders, but this isn’t a bad thing at all.

Are cash back mortgages good?

A cash back mortgage is one where you get a lump sum on taking out the mortgage. This can be extremely useful when you are buying a new house as there are many expenses. Not only will you need to pay the solicitor and removal company, but you may have other things to buy for the house as well.

Often you will need to organise curtains, decorating and maybe even some bigger renovations. You may need to replace the kitchen, bathroom or even the roof with the help of Avalanche Roofing. There might windows and doors to replace or heating to put in. Often extra furniture is needed and finding the money to pay for this can be hard, especially if you have just used as much as you possibly can to pay for the deposit on the property. You may have bigger outgoings as well with the mortgage payments, insurance and things like that, which go along with owning a house, so it could be difficult to be able to save up for these things once you have moved in to the property.

cash back mortgages

It is worth thinking hard before going for this option though. Any cash back that you get will be added on to your mortgage debt. Even if you have negotiated a really good mortgage deal, it tends work out that you will end up paying back three times what you borrowed, this is a lot of money. Therefore, there could be cheaper ways to borrow the money, if you can pay it back more quickly. You may find that others means of borrowing, like short term loans or overdrafts, might have higher interest rates, but if you calculate the cost of borrowing the money then you may find it is higher. You can do this by multiplying the monthly interest by the amount of months you will be paying it for. You can find savings and mortgage calculators which can help you with doing this, so the maths is not something that you will need to worry about.

If you do not like to be in debt then borrowing extra money is probably not  good idea. It can be cheaper to borrow money in a different way as well and so this can be worth looking in to. If you feel you will struggle financially when you move, then it can be a way to get some cash to get you started though.

Can You Stabilize Your Life With Homeowner Loans – Of Course You Can!

When your life is out of balance, you definitely realize it pretty quickly. You might be walking along, doing your day to day tasks and realize that your finances could honestly be in better shape. But when your income might be a little off or you would like a lump sum to just take care of everything in one fell swoop, you might not know what your options are.

It’s going to come down to a few different things. One is the overall credit rating that you have. If your credit is in decent shape, then you will be able to get financing to take care of the high interest loans and credit cards that are really holding you back. The last thing that you want to have to deal with is a lot of high interest debts clogging up your life. It makes it hard to actually enjoy the amazing life ahead of you. It would actually make a lot more sense if you could get homeowner loans to stabilize your life.

Homeowner Loans

??It might sound a little weird to borrow money in order to get out of debt, but it’s actually not. In fact, lenders know that people with high interest debts would do better getting them out of the way. How would your life get better if you didn’t have to deal with those credit card companies breathing down your neck? It’s a great way to consolidate your debts and still have time to enjoy everything that life has to offer.

What if you wanted to start a business down the road? Consolidating debt with homeowner loan can help you qualify for better financing for things down the road. Your credit score can improve if you are willing to think strategically about what needs to be accomplished.

Of course, you could take no action, but what would that honestly bring you? It would just make your life harder because you wouldn’t be able to honestly push forward. You wouldn’t be able to do much of anything except sit there and wish for a better life. Does that really sound like fun? Not at all. It would be better to take risks and see what you can do to stabilize your life with the property that you already have. The equity in your home is much more powerful when it’s actually put to good use — don’t let it go to waste putting your dreams on hold!

Tricks For Preventing Problems With Mortgage Loans

All property owners want to get the best deal on their home loan that they can, but having good control over your loan is another thing. Here is a list of good ways for you to take care of your house loan efficiently and steer clear of potential economic downturns.

1 – Keep paying on the original interest rate. The interest rates took a dip more than a year ago, and this means you should already feel the impact on the rates you’ve been paying. Most mortgage experts will tell you that it’s best to keep up similar repayments on your mortgage even during times when the interest rates drop.

2 – Refinance the loan. You should regularly check on the actual condition your mortgage loan is in. It could be time to re-assess things. Make sure your home loan you currently have is still right for your existing circumstances. Get help from a broker and get the loan analyzed. There is a mortgage calculator for helping with these calculations as well.

3 – When at all possible you should attempt to make extra installments. Each week if you add a little to your repayment, however small, over time it can really add up. If you see an opportunity to make a substantial payment against the mortgage, then do it. Once these extra payments have kicked in, you’ll start to feel the rewards in the form of lower interest rates. There is a mortgage calculator you can use to determine the lump sum repayment differences.

4 – Renegotiate your rate of interest. The markets are always changing. So if you have been paying on your mortgage more than six years, go back and renegotiate the interest rate. There are some good products out there to help you.

5 – Consult with your lender. A lot can happen as time passes. You might lose your job or have children, and other things that would put a strain on loan repayment. Don’t be backward about contacting your lender to see about restructuring your loan to get some relief. They are usually more than willing to help you with things like that. Many people just won’t make the call.

6 – Cut back on personal spending. By spending less you’ll have more money to put toward the mortgage. Try taking your lunch to work rather than eating out. Lower the amount of coffee you drink each day. There are many little tricks of this kind that can really add up over time.

7 – Change your loan over to the fixed rate loan. These loans are more effective if you want a regular steady payment amount. Try swapping the whole loan or maybe even half to the fixed rate so interest rates fluctuations don’t have as much impact.

Mortgage payments – a look at cost & choices

Unless you have some hefty financial backing, the only way of buying a home is going to be by getting a mortgage. Let’s take a quick look at the process from start to finish, looking at the impact your choices can have on the monthly cost of buying your home.

Step 1: Choose your property

At the start of your quest, you have to find the right home for you. Not just right for your needs but also right for your budget.

There are so many variables when it comes to property. House or flat? How many bedrooms? How good a condition? How ‘posh’ an area? How close to local facilities?

Compromise on one of those criteria and you could really win out on another – if you’re good at fixing things, for example, you might find a large house in a good area for a decent price, as long as you’re prepared to put the work into fixing it up.

Just remember: in general, the cheaper the property (as a multiple of the deposit you can put down), the more likely you are to find a mortgage deal you’re happy with.

Step 2: Choose your type of mortgage

Fixed or variable? It depends on what you’re looking for. If there’s not much leeway in your monthly finances, you’re probably better off with a fixed-rate mortgage. Whatever happens to central bank rates, your payments won’t change.

If you could afford an increase in your payments, however, that means you’re more free to look into the variable-rate mortgages that don’t deliver that kind of stability, but may offer a lower rate to start with. Depending on how long the bank rate stays low, this could really pay off – but you’d have to be prepared for an increase.

Whatever you’re looking for, it’s vital you make sure your mortgage is affordable, as your home could be repossessed if you can’t keep up with your payments.

Step 3: Choose your term

Next, you need to think about the length of your mortgage term. Basically, a shorter term means larger monthly payments but a smaller overall cost, while a longer term will cost you less each month but more in the long run (as the mortgage will have longer to accrue interest).

Many people choose to start with a longer mortgage term, then move to a shorter one – if they can afford it – when it’s time to remortgage. If it’s done right, this can be a way to get a foot on the property ladder.

Wondering about the cost?

Finding a house and a mortgage. It’s a big job – and it’s vital you put enough work into it, making sure you get a mortgage deal that you can realistically afford.

Using a mortgage calculator can give you a good idea of how much you’d pay under different conditions – i.e. depending on:

  • The mortgage amount
  • The length of the repayment term
  • The interest rate you’re offered.


What is a Mortgage Calculator?

A document that specifies a particular amount of money that is used for the procurement of a property or house and a lien is placed on the property as a security for the repayment of the debit is called a mortgage. You can get a mortgage from almost anywhere – banks, financial institutions, building societies and even mortgage brokers.

A mortgage calculator is a used to assist the debitors (in this case home buyers) to calculate their monthly mortgage payments by using the principal, rate of interest and term as the variables. This helps the real estate owners (both current and prospective) to check how much loan they can afford to purchase a property.

A mortgage calculator can also be used to get a comparative cost between the interest rates offered by the various lenders and thus to determine the impact on the length of the mortgage loan of making added principal payments or bi-weekly instead of monthly payments. Besides the mortgage calculator is a programmed tool that helps the consumer to see the fiscal repercussion of changes in one or multiple variables in a mortgage financing arrangement.

The key variables are:?

* Loan principal balance
* Periodic interest rate compound interest
* The total number of payments in a year
* Total number of payments
* Regular payment amount

Financial calculators like HP-12C, Microsoft Excel sheet and the Web all can be used for the purpose of a mortgage calculator.

Home Finance of America has a few calculators that help the consumers with their financial queries. An affordability analysis can be achieved in a number of ways and the calculators discussed below can assist them to evaluate effects of the different variables when purchasing a house.

* The RENT Vs BUY CALCULATOR – this program helps the consumer to get a comparative study of renting an apartment and buying a house.
* The MORTGAGE QUALIFICATION CALCULATOR – this program shows the user how much income is required to buy a home based on salary calculations and other factors.
* The MORTGAGE PAYMENT CALCULATOR – this calculator provides the details of the consumer’s mortgage payment for the loan term.
* The REFINANCE CALCULATOR – this one actually helps the borrower to determine whether it is the correct time to refinance.
* The DEBT CONSOLIDATION CALCULATOR – debt consolidation calculator shows the consumer how can he reduce his monthly payments and hence save money.
* The MONTHLY PAYMENT CALCULATOR – this one permits the users to look at the various options when there are changes in the loan balance, the mortgage term and the rate of interest on the monthly principal and insurance payments.
* The CREDIT GRADE – as the name suggests, this one helps the debitor to assess his credit grade.

Did you know?

* The best mortgage calculator is the Microsoft Excel. Try out the function PMT and you will be amazed by the result.
* Mortgage calculators are very useful in budgeting and bargaining – use one of these to calculate all the options that your lender offers. Some creditors will give 0-2 discount points with variations for different mortgage terms; some others give more discount points up to a set maximum.
* A mortgage calculator will also help you in negotiating mortgage points. Buying mortgage points lowers your rate of interest. In a typical situation, for every mortgage point you buy, your interest rate will come down by 0.125 percent. A mortgage calculator will help you to evaluate how much are you saving every month.