Most mortgages run about fifteen to thirty years, and monthly payments vary on APR and location. But the percentage of your payment that actually applies to principal, or the cost of the home, can be under fifty percent of what you pay every month. Everyone wants to pay off their home sooner, but may not have been able to afford the monthly payments for a shorter time-span on their loans.There are basically two alternatives. The first is paying more than the amount of your monthly payment every month; this will allow you to apply a lot more of your payment to principal, and clear out your home loan even faster. However, some loans charge fees for early payoffs that can make your extra payments not worth the effort. It may be a good option for a person on varying pay plans, such as a commission, to pay off more when they can.The other alternative is a bi-weekly payoff plan. A bi-weekly pay off plan is a schedule when the borrower pays every two weeks, instead of every month. A bi-weekly plan means the borrower will pay for one extra month a year, paying their loan off sooner than a traditional monthly payment.How does that work out? Say your monthly payment is $900. You pay $900 to the loaner 12 times a year. However, a bi-weekly schedule means you pay 26 times a year, and only pay $450 per payment, which equates to 13 $900 payments per year, instead of 12.Can it really make that much of a difference? You bet! On a 30 year loan of $100,000, with an interest rate of 7%, you save about $34,000 total over 30 years in interest payments, and you will pay off your loan in about 24 years, instead of the whole 30.But bi-weekly payments are not for everyone; if you cannot afford to make payments every two weeks, it may not be the payment schedule for you. Also, if you currently have a monthly loan, you will want to check with you lender first, before switching to a bi-weekly schedule. This change may require some paperwork on your part, and may change some of the terms of your loan. If your lender requires too much for the change, you may want to consider simply making one whole extra mortgage payment a year; you do not need permission from your lender to pay mortgages early.
What are the best companies for student loan consolidation? There are many ways to handle paying your college loans. Many graduates prefer to consolidate their multiple college loans into one loan. Contacting one of the many companies that lend money specifically for student loan consolidation helps make the decision to consolidate much easier.Even if you can make the monthly payments from your original loans, you may still want to consider consolidating to lower your payments and free up money for other bills with higher interest rates. Using some of the best companies for student loan consolidation helps make the process easier rather than going to a company that doesn’t specialize in student loan consolidationsA consolidation loan lets you combine all your federal student loans into one single loan. Consolidation loans have fixed interest rates that are based on a weighted average of all the loans you are consolidating. You can gain a lower total interest rate if you contact companies that provide loans at the lowest average interest rate. This protects you from future rate increases, but does not allow you to benefit if variable rates decrease in the future. You can also get decreased interest rates by making regular payments or simply allowing your payments to be drafted directly from your bank account.Consider The CostRepayments on consolidated loans begin within 60 days of consolidation and have payback terms between 10 and 30 years depending on the amount of the loan and the payment options you select. Some of the best consolidation companies for student loan consolidation will have a variety of plans for repayment, so you’re sure to find one that matches your circumstances. You can also pay your loans off early and there is generally no fee associated with doing so.While loan consolidation can simplify loan payments and lower your monthly bill by as much as 50%, it can increase the total cost of paying off your loan. Consolidation companies are able to offer lower monthly payments by extending the life of the loan. This fact means that the amount of interest you pay may double by the time you pay off the loan. If you don’t need the payment relief offered by consolidation, you should carefully consider the cost of paying your non-consolidated loans against the cost of loan consolidation.You should also consider the fact that once consolidated; you will lose many of the benefits of a non-consolidated loan such as discounts on your interest rate, principle rebates, or loan cancellation benefits, all of which can decrease the amount of your loan.College loan repayments don’t have to be a source of stress in your young adulthood. If you are doing all you can to make your monthly payments, but still can’t find a way to make ends meet it may be best that you contact one of the many companies that offer student loan consolidation. Don’t struggle, investigate today.
Many people are trying to get their home loans modified, but if you have a mortgage through Wells Fargo, you might find it’s harder to do than you previously thought.It seems as if lots of homeowners are in a position these days to try to have their mortgages modified. Loss of income, lower income or falling behind in payments has caused many people a real hardship. Some lenders are easy to modify your home loan with, but others have rules and standards that may make it feel impossible to get the lower payments you’re seeking to keep your home.There are many reasons why you might have been denied for a loan mod, but much of the time, people won’t even make it the modification stage. Here are some reasons that it might be really hard for you to get your loan straightened out:1. Wells Fargo especially will tend to offer you a temporary forbearance agreement. This is a payment that you make over the course of three months to try to keep your loan from getting any further behind and to prove that you can make monthly payments on your account. If you agree to a forbearance, you must pay it as agreed, or you will get “kicked out” of the program and review process and be forced to start over.2. The goal of Wells Fargo is to offer a mortgage modification that helps them to get roughly the same amount of interest out of your payments. So, your chances of succeeding are much better if you’re able to resume making the regular monthly payments and have a back amount you want to have taken care of. If you’re trying to have your loan payments dramatically reduced, then you might have a tougher time getting what you’re looking for.3. If you don’t submit your paperwork the recommended every 30 days, then it’s unlikely that you will be given the opportunity to stay in the modification system. It’s a time consuming process where Wells Fargo will review your case and try to make arrangements for you. So, if you’re not making sure that the company has your hardship letter, proof of income, and financial worksheet each month, then you might be denied for your home loan modification.In the end, whether you’re working with Wells Fargo or any other lender, the most important thing to make sure to do is call them and keep calling them. Make your monthly payments if you can, so that you don’t fall too far behind in your payments and make sure that you provide your lender with all of the paperwork they need. If you’ve been denied for a loan modification the first time, don’t give up. Start over again and you might find that the second time around you have better luck.
At this difficult economic time, homeowners look to lower their household builds whichever way they can. The largest bill in most houses is mortgage and loan payments. It seems that this time of financial crises result in at least one benefit. That is of course record low interest rates. This is a chance for many debt loaded homeowners to sort their problems with a low interest refinance home mortgage loan. Many have already fixed their rates for as long as the life of the loan.Homeowners with enough equity in their home can consolidate all their credit card bills, car loans, personal loans and their existing mortgage into one low interest refinance mortgage. They may reduce their monthly payments considerably this way and/or reduce the term of the loan. This will of course increase the term of the credit card debts to the term of the mortgage. The benefits of refinance may be further increased, if the borrower uses some those savings to make a lump sum payment in the future.Homeowners with excellent credit score may have the luxury of selecting mortgage lender of their choice. Borrowers with bad credit might not qualify for mortgage refinance. Much depends on their debt-to-income ratio, property value, employment history, and financial ability to repay the home loan.They should take into account all the fees and costs (including broker fees, if they are using one). Usually, refinance is justifiable if the savings cover the total fees within latest couple of years. However, many applicants take a much longer view and include in their equation other benefits of refinance. For example fixing their mortgage against any interest increases may have enormous benefits depending on interest changes. Unfortunately, this may not be calculable at the time of mortgage switch. Refinance may not be a good idea for people who are only looking for a short term mortgage.So, they should not waste any time and get their 3 bureau credit scores. Few companies provide all 3 bureau scores free of charge. The best way of finding out for which mortgages they may qualify, they should go online and fill out a quote offer from as accurately as possible. Some online broker quote systems come back within a very short time with 4 rate offers from different banks. This will allow them to find out quickly and easily what rates they may be able to qualify and which banks offer those rates.
One of the best ways to find to consolidate your debt and get clear of the payments that you need to make every month, or at least lower them is to get a loan that puts all your payments in one place. Getting a loan to help you get clear of some of the monthly payments that are dragging you down and keeping you from getting a more secure financial future may not be as difficult as you think.In an uncertain economy, making your payments more manageable is everyone’s goal. Both private companies as well as governments are helping citizens to find a way to get their monthly payments lowered. In many cases this means that they will take out some type of loan to get all of those payments in one place.How does the consolidation process work to help lower your payments? Putting all of your payments in one place and getting rid of some of them will help you to get free of extra debt in several ways. You are currently paying higher interest rates on multiple cards if you are anything like most people. Each of these payments bears it’s own interest rates and most are higher than that of a loan.If you consolidate the multiple payments, using the money that you receive to pay off all of these cards, then you owe just one payment per month. Depending on the interest rate that you get for the loan, the payments will be much less than the combined payments that you used to pay. If you were paying even 10 percent on each of five different cards, and your loan is only ten percent, then you are saving the interest rate of ten percent four times, and paying it just once.It’s easy to see how a loan to consolidate your bills all into one payment might be the easiest way to get out of paying an outrageous amount each month and pay one single payment that you can afford more easily.Many people feel that a loan will adversely affect their credit rating. The fact is that in some cases it can actually save your credit and give you more options. If you are behind in even one payment and can pay it off and make the payment on your new loan, you’ve avoided getting further bad marks on your rating each month.