Once the need for mortgage advice is created, it is easy to get it. There are various articles on the topic. Newspaper clippings, seminars etc. can be valuable source of information. Friends and relatives who have taken mortgages too can provide valuable information.

These explain the various terms associated with mortgage in easy to understand language. Nevertheless, whether or not the advice given is independent still needs to be ascertained. Independence of the advice is an important criterion by which borrowers rate its value. Some sources are just selling their mortgage products in the guise of independent mortgage providers. It is important to stay away from these advisors.

They tend to hide the disadvantages of the products while enumerating its advantages.Whether the person or any other source offering advice is competent to provide advice will be the next criterion to judge the usefulness of the advice. It is advisable to contact independent financial advisors for all queries related to mortgages. Independent financial advisors provide advice according to the guidelines of the Financial Services Authority. The first thing to understand will be the type of mortgage to be taken. There are a number of mortgages designed for different purposes.

First time buyer mortgage is for people who are buying home for the first time. Those who aim to repay the mortgage through house rent can take buy to let mortgage. Those aiming to provide for their old age take a pension mortgage. There are many more mortgages to choose from. Customers must be aware of the uses that each mortgage can be put to, and their inherent advantages and disadvantages.Choosing the mode of repayment will be the next to decide.

One can pay outright the principal and interest through a repayment mortgage, or can choose to pay only the interest through an interest only mortgage. Few more terminologies like fixed rate, variable rate and capped rate creep in when the decision regarding the way interest is to be charged needs to be decided.The correct Mortgages advice is one that is provided after studying the requirements of the customer and the risk that they would desire to entail. A mortgage taken without keeping the financial condition of the borrower will make the repayment difficult. The mortgagee or the mortgage provider will have to face some difficulty in getting the mortgage amount with the interest. However, he gets the balance on the mortgage after liquidation of the assets.

The ultimate loser is the borrower. Hence, the onus of understanding the mortgage process rests on the borrower.Andrew baker has done his masters in finance from CPIT. He is engaged in providing free, professional, and independent advice to the residents of the UK.He works for the personal loan web site http://www.ukfinanceworld.co.uk for any type of uk secured and unsecured loan please visit http://www.ukfinanceworld.co.uk.

WFR originates a wide array of http://www.mortgages-refi.com [mortgage products] designed to address market competition and meet the needs of increasingly market-savvy consumers. We offer over 160 loan programs for credit ratings ranging from A to D, in addition, we provide http://www.mortgages-refi.com [Conventional loans] and http://www.mortgages-refi.com [FHA loans], 95 percent NINA's, 107 percent financing for first mortgages, COFI and MTA loans, and a variety of other niche products. We offer the most competitive rates and professional service in the industry.Worldwide Financial Resources currently has over 20 offices in 14 states. We are poised to acquire a federally chartered savings bank, which will allow us to develop new portfolio products and give us the ability to originate loans on a national level. For additional information:David AbramsLoan OfficerPhone: 561-452-5995Fax: 561-828-2666www.mortgages-refi.com.

You then make separate payments into an investment scheme (such as an endowment), with the idea being that at the end of the mortgage term this investment will have grown sufficiently to repay the mortgage. An online mortgage calculator can give you an idea of the difference in payments to your lender between an interest-only mortgage and a repayment mortgage. Interest-only endowment mortgages were very popular in the 1980s and 1990s and were often chosen in the belief that the endowment would end up being large enough to clear the mortgage and still leave a tidy sum of money left over as a bonus. How do endowments work?An endowment is a long-term savings policy, typically running for ten to twenty-five years. An endowment plan has what is known as a "sum assured" value.

If the policyholder dies during the life of the endowment, it pays out the sum assured. In the case of endowments linked to mortgages, the sum assured is equal to the size of the mortgage. The payout in the event of the death of the policyholder is guaranteed but, if the policyholder survives, the final value of the endowment at the end of its term is not guaranteed. Endowments can be unit linked, which means that you buy units in a fund, or they can be "with profits". How does money grow in a with profits endowment?There are two ways in which a with profits endowment can increase in value.

Firstly, the insurance company may add a bonus to your policy each year. This is known as a reversionary bonus and is usually a percentage of the amount of profit made by the fund over the previous years. The amount added in this way may only be a small amount. However, once added, these bonuses cannot be taken away - hence the name reversionary bonus - and will belong to you when the policy matures. Then there is the terminal bonus.

This is a separate sum of money which the insurance company can add to your endowment policy when it matures. These terminal bonuses are discretionary and may not be applied at all. What are the advantages of with profits endowments?The idea of a with profits endowment is to smooth out fluctuations in the stockmarket. With a non-with profits endowment, your investment is linked 100% to the stockmarket. Therefore, there is always the possibility that the investment value could fall just at the time when you need the money.

By using with profits endowments, insurance companies get round this problem by giving you a slightly smaller percentage of any fund growth as an annual bonus and try to smooth out future annual bonus declarations. The point of this is to try to ensure that, no matter what happens to the returns of the fund, you are guaranteed a certain minimum amount when then endowment policy matures. Why don't you get the entire year's gains as a bonus?On the one hand, the insurance companies and their fund managers want you to have as much security as possible - hence the reversionary bonuses which cannot be taken away at a later date. On the other hand, they are also trying to maximise long-term growth by investing your money in stocks and shares, property, gilts, and cash. All of these involve a degree of risk.

What is the problem with endowments?Anyone taking out an endowment policy, whether on a with profits or unit linked basis, has to be given a written illustration by the insurance company of how much the policy might be worth at maturity. When providing these illustrations, insurers have to make an assumption as to the rate of growth per annum that will apply to the money you are paying into the endowment. This assumed rate is known as the projected rate, and there is no guarantee that this rate will be met in reality. Until a few years ago, the projections were usually based on a mid-range growth rate of 7.5% per annum. In the early 1980s, the assumed growth rates used in the illustrations were even higher.

Therefore, the monthly endowment premiums were low by today's standards, because they were set to reflect these high projected growth rates. Interest rates and other economic factors, such as stockmarket growth and interest rates, are much lower now than they were in the 1980s and 1990s, so it has now been necessary to reduce projected rates of growth for people taking out a new endowment policy today. As a result, the monthly premiums for a new endowment policy today will be higher than they were in previous decades. How does this affect existing policyholders?Because actual growth rates have been lower than the projected 7.5% rate, an endowment policy taken out in the 1980s or 1990s may now not be worth enough at maturity to pay off the interest-only mortgage to which it is linked. Insurance companies are therefore assessing the state of people's policies and contacting them to advise what action they should take now to avoid a potential shortfall at the end of their mortgage.

How will I be affected?In most cases, if you took out a with-profits endowment in the mid-1980s or earlier, the fund should be sufficient at maturity to pay off the mortgage. This is because the money in your endowment policy will have benefited from the higher rates of interest and better stockmarket growth of the 1980s. But, the shorter the length of time your endowment has been running, the greater the potential for a shortfall at maturity. It is impossible to predict exactly how large this shortfall may be, as so much depends on future fund performance between now and the time when your endowment matures. Insurance companies are trying to assess the issue by looking at how much has been accumulated in your fund so far and making more conservative estimates about future growth.

What can I do now? There are a number of options: 1. You can increase payments into your existing endowment policy (subject to Inland Revenue rules), or take out additional endowment policy with the same insurer or a different insurer. However, you may decide you don't want to be tied into another endowment. 2. You can ask to extend the term of your endowment policy, subject to your mortgage lender agreeing.

This is probably not a good idea if it means your policy would continue beyond your retirement age. 3. You can set up an additional investment, such as an individual savings account (ISA). An ISA may be cheaper and can offer a wide range of investment choices to suit your attitude to risk. 4.

You can ask your mortgage lender to switch part of your mortgage (equivalent to the projected shortfall on your endowment) to a repayment mortgage. You can get an idea of the costs of the new repayment part of your mortgage by using an online mortgage calculator. 5. You can use any other spare lump sum to pay off part of your mortgage. You will need to check first to see if this would make you liable for any early redemption penalties from your lender.

Which is the best option?Everyone's situation is different, and everyone has their own particular preferences. If you are unsure what to do, you should take professional mortgage advice to help you review your optionsand come to a decision as to what to do. Should I just cash in my endowment? This would almost certainly be a mistake. Many endowment policies are structured such that the management charges are highest in the early years. If you surrender the policy early on, the amount you get back may well be less than the amount you have paid in up until now.

Also, you need to bear in mind that a large proportion of the final value of a with profits endowment depends on its terminal bonus. The size of this bonus will not be known until the policy matures. So, the best strategy is normally to keep the endowment in place. If you need to cut down on your monthly outgoings, you can leave a policy "paid up" (although you may incur penalties for doing this). This means that you do not pay any more money into the endowment, but leave it to mature on the original date for a lower amount.

If you do this, you will need to make sure you still have sufficient life cover to protect your mortgage. It is possible to sell endowment policies on the second-hand endowment market. The amount you get will depend on the policy and how long it has left to run. Again, this is an area where you would be well-advised to talk to a professional before taking any action. ------Copyright 2004 .

You are welcome to reproduce this article on your website, so long as it is published "as is" (unedited) and with the author's bio paragraph (resource box) and copyright information included. In addition, all links to external websites must be left in place..

People who are interested in purchasing a home should be careful, however, as many people who should qualify for traditional loans are being pushed into higher-priced subprime loans instead.The subprime market is quite a lucrative one for lenders, who are able to charge higher fees and interest rates due to the increased risk posed by clients with substandard credit histories. A subprime borrower might pay an interest rate that is several percentage points higher than that of a traditional loan, and the fees may include several additional "points" as administrative fees. A point is one percent of the loan amount. This can add several thousand dollars to the closing costs and tens of thousands of dollars to the cost of the loan over the life of the typical 30-year mortgage.While it is understood that customers with poor credit histories represent a higher risk to the lender, potential borrowers need to make sure that they aren't classified as "subprime" by their prospective lenders. Studies show that up to 15% of subprime borrowers have credit scores that should have entitled them to loans at lower, more traditional interest rates.

What this means for potential borrowers is that you should shop around for the best price on a loan and not accept it as fact when a lender tells you that you don't qualify for the traditional rates. The Federal Trade Commission is investigating several lenders who have increased their profits tremendously by steering borrowers who should have qualified for low-interest loans into higher-interest subprime loans, claiming that they didn't qualify for the lower rate.How can you avoid such problems? Obtain a copy of your credit report. You can obtain one, with your credit score, from any of the three major credit bureaus ? Experian, Equifax, or Trans Union. As a rule, lenders offer subprime rates to customers who have credit scores below 620. If your score is higher than that, you should be able to qualify for a better interest rate.

If not, you can either accept the higher rates from lenders, or take time to improve your score by paying off some bills in a timely manner..

For example, a lender can offer a 30-year fixed loan to a homebuyer at a 6.5% interest rate. The loan is locked in to the 6.5% interest rate, even if the market interest rate rises to 8.0%. Conversely, if the market interest rate decreases to 4.5%, you will continue to pay the 6.5% interest rate. A Fixed-Rate Mortgage applies the same interest rate toward monthly loan payments for the life of the loan. Features:- Straightforward and easier to understand than Adjustable Rate Mortgages (ARMs).

- More secure for the buyer and very popular with first-time home buyers. - Ideal for anyone who likes to budget monthly expenses and plans to keep their home for several years.- Since the risk to the lender is higher, fixed-rate mortgages generally have higher interest rates than Adjustable Rate Mortgages (ARMs).- Tend to have higher initial monthly payments compared to those of adjustable rate mortgages.- Fixed-rate mortgages are less flexibility than adjustable rate mortgages.With adjustable rate mortgages the interest rate is not fixed, but changes during the life of the loan in line with movements in an index rate. The advantage of an Adjustable Rate Mortgage is that you may be able to afford a more expensive home because your initial interest rate will be lower. In a fixed-rate mortgage, your interest rate stays the same for the term of the mortgage..

The window of opportunity is rapidly closing, so if you're going to refinance, you must do it as soon as possible.Things you may not know about refinancing:A small rate cut can pay off handsomely in smaller monthly mortgage payments.Smaller monthly mortgage payments will decrease your tax deduction, because you will no longer be paying as much interest as you've been paying. Factor this in, because it's the total savings that matters.You can and should ask to have fees waived or reduced: application fees, origination fees, appraisal fees, legal fees, points, and closing costs.If you don't have cash on hand to pay fees, you can get them tacked on to the mortgage, paying nothing out of pocket for your refinanced home mortgage.If you refinance and shorten the term of a home mortgage, you will pay a higher monthly payment, but you'll save a significant amount of money over the term of the mortgage in addition to paying off your home and building equity faster.Standard mortgage terms run 15 years or 30 years. If you'd prefer a term somewhere in between the standard terms, ask for a custom loan and designate a term that works better for you. Find a term that strikes a balance between a term shorter than 30 years and monthly payments lower than those of a 15-year mortgage. If you cannot get a custom term, settle for a 30-year mortgage and pay more than the monthly payment to pay off the loan sooner.

You must also negotiate no pre-payment penalty.Where to go from here1. Review your credit record with each of the three credit bureaus: Equifax, TransUnion and Experian. Mistakes are common in credit reports, and you may be surprised at what you find: accounts that do not belong to you, balances that do not match your statements, an identity mistake or worse. Correct any bad information.2. Compare mortgage rates and fees online among several finance companies.

3. Use a good mortgage calculator. Using refinance calculators is the only way to determine which loan is the better all-around deal.Work fast, but negotiate hard to make a deal that works for you. The loan company wants your business as badly as you want a better rate..

Buying property, on the other hand, will be intricately difficult for a newly set up business. This will require a bigger investment. Obviously, the share of production in the capital lessens. Commercial mortgages provide a solution to this paradoxical situation.Businesses where real estate holds an important place will benefit most from commercial mortgages. Running hotels and resorts from rented properties is a cheaper short-term solution.

However if you plan to stay longer, it will be necessary to learn the drawbacks. The property owner may raise the rental or does not renew the lease. Moving operations to a new place will be more inconvenient for these businesses. Commercial mortgage creates an asset in the form of real estate. The organization can fall back on the premises for help in times of recession.

Because of the higher risk involved the rate of interest is usually higher in commercial mortgages, as compared to the residential mortgages. Specialist lenders are the best place to look for commercial mortgages. They understand the specific needs of every particular industry. Thus, they are able to provide better solutions. However, the borrowers will have to decide the specialist lenders out of the many lenders available.

Brokers can save borrowers this effort by finding best lenders and best deals in commercial mortgages. These brokers charge a commission for their services. Few brokers charge commission directly from the lenders.Apart from the interest and principal amount of commercial mortgage, there are certain fees that the borrower will have to bear. Some lenders charge about 0.5-1.5% of the mortgage as a processing fee. The amount varies with lenders.

Some lenders do not even charge the processing fees. The borrower is also charged for the valuation of the property and preparation of legal documents. Some lenders also charge early redemption penalties. It will be necessary to read well between the lines to be aware of such clauses.Available with variable and fixed rate options, commercial mortgages are repaid in a variety of methods. The borrowers can choose from paying fixed monthly payments of both interest and principal as in a repayment mortgage, or only the interest as in interest only mortgage.

The manner in which the final payment is made classifies the methods into endowment mortgage, individual savings account mortgage, and pension mortgage.The owner or the proprietor of the organization taking the commercial mortgage must have a good credit standing. Since the owner plays an important role in the management of the organization, the lenders would study the policies framed by the owner. The organization as a whole must be well run and managed, and must have a good credit history. Lenders generally demand audited accounts and bank statement showing the dealings of the business. A copy of the balance sheet will accompany these documents.

If demanded, future projections for the company will have to be furnished.Lenders usually charge a deposit of 20-30% of the amount of mortgage. Once the organization decides to take up the commercial Mortgages, it must start preparing for the deposit. All the documents must be updated to make the approval process easier..

However, with a 2nd mortgage you don't have those fees to worry about recovering. 2nd mortgages do have minimum balance and early pay off fees, but they are significantly less than refinancing fees.Flexible Loan AmountA 2nd mortgage allows you to take out your home's equity over the course of several years. The money can be accessed with a check, ATM card, or direct deposit, depending on how you set up your account with the lender. Additionally, you only pay interest on the money that you have withdrawn.Higher ApprovalLenders tend to be more lenient with approving 2nd mortgages. Since the amount usually is less than a traditional loan, lenders remain confident that they will receive payment.

If you have had a few credit glitches in the past two years, think about going with a 2nd mortgage.2nd Mortgage Mistakes2nd mortgages aren't for everyone. You should weigh the cost of PMI and payments when choosing your financing options. Borrowing more than 80% of your home's value will subject you to private mortgage insurance. Your monthly payments should also be a factor in your decision. By taking out equity when refinancing your home, you will have a lower payment than if you had both a mortgage and 2nd mortgage payment.

Also, if you refinance in the future, you will have to pay off your 2nd mortgage..

At this time, the entire loan balance is due. Rollover ClauseFirst clarify with your Mortgage Lender or Agent that you are indeed signing up for a balloon mortgage. Then, get a rollover clause attached to your balloon mortgage agreement. The rollover clause says that at the end of the mortgage term, 5, 7 or 10 years, the loan will automatically rollover into another type of mortgage. This will protect your assets in case you are not able to come up with the full payment on the due date.Anything you can do to protect yourself when you have a balloon loan is preferred, since most lenders are less likely to work with you to come to an agreement on the due date..

George explained. "It is frustrating to search for something and find a webpage that happens to mention your search phrase, but may have very limited information on the topic that you really care about...in this case- 3 year adjustable rate mortgages."With that said, American Mortgage Specialists is also intending on launching other mortgage product specific websites.Soon to be launched are:http://www.5yearARMs.comhttp://www.TheOptionARM.comhttp://www.VA-Home-Loans.infohttp://www.DiscountedListings.comAmerican Mortgage Specialists, Inc. hopes that with each website, they can target a specific demographic. However, American Mortgage Specialists is not interested in taking all of the business themselves."We are only licensed in a handful of states. Personally, I like to concentrate on Arizona, California and Utah myself," said Mr.

George."If lenders from other states would like us to link to them- from www.3yearARMs.com or any of our other sites- please contact me."American Mortgage Specialists will happily link to lenders who will reciprocate links. Some restrictions apply. Please contact Mr. George for details..