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Category: property

Mortgage calculators online

Mortgage Calculator

When you are going to apply for a mortgage you know how much loan you want. But you do not know the rate of interest and the amount of installment you need to pay monthly for your mortgage. You do not need to rack your brains, as there are many options of mortgage calculator available on the internet. You can even make your own mortgage calculator on Microsoft Excel. I am going to review a few of the best mortgage calculators available online and also review the information you need to put in there.
What is a Mortgage calculator?
A simple mortgage calculator will have three essential fields. Some of the calculators will have additional fields as well. We will try to understand what these fields mean.
Amount of loan – The loan amount you need to get approved from the mortgage company.
Rate of interest – The interest that the mortgage company is charging. You can get the information online or from the brochure of the mortgage company.
Tenure – The number of years you will have to pay the installment before your loan is paid. The longer the term the lesser is the monthly installment. The tenure depends on your working tenure directly. So a 25 year old will easily get a 30 year tenure while a 40 year old will get the mortgage maximum for 20 years.
Property tax – Some of the mortgage calculators will have this additional field. This makes a more realistic calculation as property tax has to be paid immediately.
3 Best Mortgage calculators online
You can get amazing mortgage calculators on the internet and can use the same to review your mortgage. The ones I use to review and get good results are:
Mortgagecalculator.org – This is one of the best mortgage calculator tools. It includes property tax and PMI along with loan amount, rate and tenure to give a very realistic calculation of your installments. It even gives a comparison of monthly and bi-weekly payments. It also gives information about how much interest you are paying and the total amount of interest paid. According to me it is the best mortgage calculator available online.
moneychimp.com – This is a simple calculator and includes a graph to show you the decrease in debt over a period of time. It is best for people who are finance novices just because of its simplicity. It simply gives your monthly installment and is easy to understand. Just includes the three essential fields of Amount, rate and tenure.
bankrate.com – This also provides the simple calculator. The additional feature is the average mortgage rates highlighted on the sidebar. This will help you to bargain with the mortgage company.
Taking all these three calculators together will help you get the best rates and also know about the money you should keep handy when buying a mortgage.

Effects of Housing Fluctuations

Housing New Zealand

Housing New Zealand

To protect against fluctuations across markets, Economists, businesses and governments often put in place legislation to try and restrict certain parts of the market behaving in certain ways. Now this may seem authoritarian, but they will say that in doing so, it does stop financial and economic crashes, such as the one still being felt across the world. It is the exact reason why restrictions, specifically ‘loan to value restrictions’ were put in place by the Reserve Bank in October last year. In doing so, they hoped to decrease the number of people buying houses, to stabilise house prices and their relationship with bank lending. Such restrictions can’t be removed until those in power are satisfied that the housing market is slowing down on a sustained basis. This slowdown is intended to do exactly that to the market, and ultimately it affects those with little money and seemingly little buying power. Even though the market is still hard to predict as certain places face a future very different to others, we are very much at the mercy of how our neighbouring regions behave.

Slowdown in Housing Sector

Slowdown in Housing Sector

All markets react and behave according to others. After all, those in charge of the markets are us, and as things happen to one part of our lives they affect the others. The babyboomer generation are the archetypal example of such a phenomenon. At the moment, we have a huge generational shift happening, with many young people being unable to support the old. After the second world war finished there was a huge surge in the number of pregnancies, as people celebrated coming out of such a devastating time. It is no surprise then, that as a result of the Easter holidays and Anzac Day, house sales plummeted according to Economists. However, this goes no way to reverse a growing housing trend across the country and compared to this time last year, the amount of house buyers are down. The only saving grace is that house prices are up on this time last year. The one piece of information to resonate is the continued activity of buyers in the million dollar and over category, showing that despite hardships to the rest of the nation, the wealthy don’t get affected.

Tips to buy your first House

Buying a house is a really big decision. It is difficult when you buying for the first time. So, you need to be very methodical. There are many things you need to keep in mind.

Tips for first time buyers

Some of the things to be aware of when going to buy are:

  • Budget – First you need to check your purse. The question to be asked is – How much monthly payment is affordable. Also check on the total cost of the house.
  • Amount of Mortgage – The first thing to check is the amount of mortgage you qualify. You can check online or can check with a local bank. Do not go for taking the full credit amount available. The ideal amount is around 60 percent.
  • Hire an Agent – When you are buying a house for the first time hire an agent. It is always better to go for the good agents. You might save money eventually if you hire a good agent. It’s easy and the agent will do the research for you.
  • Narrow down the search – Be specific where you want to buy and what kind of facilities you require. This will help to narrow down the search criteria. Also it helps to know your preferences.
  • Compare offers of Loan – Make it sure to compare offers from different banks and financial institutions before signing up. It will help you save some money on interest.

Signs of the times?

I was recently scouring for property news when I came across this map which shows the changes in property values after a survey was made to re-assess them in 2011. A quick scan of the map shows a worrying trend with, I’d say, 60-70% of the properties shown having experienced a drop in their value of 5% or more. I know the survey is old but it’s still worrying, has this trend continued? My common sense always weighs in on these kinds of issues and usually puts me in a worse mood. It seems frustrating that people, their lives tied in to the future of these properties by law and mortgages, can do nothing but watch their value decrease, despite working almost every day in order to afford to stay there.

property-value-vs-replacement-cost

Perhaps it’s time to start thinking outside the box, or house. While looking for solutions and alternatives to this ongoing trend, I came across a fascinating listing which immediately caught my eye. Why not take that money you’ve been funneling into your home and do something memorable and even a little mad with it? If this proposition has you nodding your head vigorously, this story might be of interest. A WHOLE SCHOOL is now on the market for the modest sum of $350,000. Seems like a steal doesn’t it and takes the concept of ‘home schooling’ to a whole new level.