Mortgage reducing program

Mortgage pertains to the loan or lien on the asset or house that need to be paid on a particular period of your time.

Mortgage loans are the necessary liabilities within the world these days. Mortgage or home loans procedures in widespread differ from twenty to thirty years. There are huge numbers of ways in which of lowering the mortgage loans.

Refinancing mortgage is one kind however even now it's advantage in a position when the mortgage interest is huge than the present cost of interest.

You'll be able to be in a position to refinance the mortgage loan and use the benefits of reduced interest price. This lower the monthly payments and thus you'll be able to create the payments very easily even before the date promptly.

You have to avoid unwanted insurance coverage rates. Both are same type of mortgage loan and cope with borrower payment as little funds as down payment. The fees are charged on month-to-month basis and men and women are unknown of these fees last until 78 p.c of the balance principal quantity.

Thus apply now these fees can be posted on the mortgage by lowering the term. You'll additionally bust the month-to-month payment in to weekly terms. The calculation of interest is finished on the day after day.

Recently people today prefer to avail the road of credit as the everyday account of usage. Because of everyday calculation of interest, the larger you lower the principal the more you gain. The methodology is to from monthly huger installments to mortgage that is line of credit and draw quantity from when required.

This largely lowers the term and you can be in a position to avoid wasting huge quantity on the interest. Considering of these techniques, you've got to work out which is suitable for you to use.

Whilst selecting a mortgage dealer, you have to be very careful. You have to check varied aspects of them before picking for your purposes.

Home Loans Rates Remain Unchanged

Yesterday, the South African Reserve bank announced that the REPO rate is to remain unchanged. That means that the prime interest rate on home loans also remains unchanged at 9%

Home loans interest rates at current levels are still the lowest in 30 years, therefore if you are a first time home buyer and want to purchase, now is the time to enter the property market. Currently it's a buyer's market as there's an over supply of properties.

Banks are strict on granting home loans but it's not impossible if you have a professional bond originator on your side.

If you need help or information about getting a home loan approved, don't hesitate to contact me.

How to Get a Home Loan Without Using a Bond Originator

In many circles bond originators are in the same popularity category as lawyers and accountants, therefore many people these days are seeking to rather go directly to the banks so that they have more "control" over the application.

Below are the tasks involved in obtaining home loans on your own:

1) You would need to complete at least 5 different application forms if you are hoping to get a fair chance at choosing a competitive package

1.1) This means that you would either physically need to drive or walk from one bank to the other, or, for those who are more Internet savvy, complete online applications.

2) If you have opted for the "going into each bank" route, you would also need to have originals or copies of originals of your bank statements, ID and latest payslip.

2.1) If you have opted for the online application you are going to have to send 5 different faxes and hope and pray they actually receive it. In most cases you are going to have to send your faxes.

3) Phone each bank each day and follow up on the application. It usually takes an average of 4-5 working days to process, so that means you're going to have to phone each bank each day for 4 days, that's 20 phone calls. You also better hope that the home loans department doesn't cut you off, ask you to call later because they're offline, or that they keep you holding so long you HAVE to call again.

4) Should there be complications, or if your application is declined, you have to deal with a call centre, so, because you don't speak to the same person every time you have to explain the story over and over again - hopefully that's not the case at all the banks.

The above is NOT an exaggeration.

The bottom line is, if you don't have a private banker looking after your needs, and in most cases that doesn't even help, it is better to deal with a reputable bond originator that is experienced and is committed to assisting you.

Their service is free and they go through the hassles explained above on your behalf.

If you want to apply for a hassle free home loan then don't hesitate to contact us today on: info[at]gpfmortgage.co.za (replace the [at] with @)

Are banks still giving 104% home loans?

Do you need a home loan and don't have a deposit?

Don't dispair, banks are still giving 104% home loans subject to certain conditions and requirements.

Check out my latest video post as to what is involved.

Can You Get A 100% Home Loan?

How can you get a 100% loan from the banks. Check out my latest video in the Q & A series.

Home Loans

Home Loans Made Easy

To view all my Home Loans related articles, click the link or ask my any related question on http://gpfmortgage.co.za/contactus.html


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Can You Trust Your Bond Originator?

I’m writing this article today because I had an interesting experience the other day. It’s happened many times before, but when it happened again I thought: "I must write about this".

Somebody phoned me and asked me if we were able to apply to banks where she had already applied.

I replied that we couldn’t because then it would be a duplicate application, but I asked why?

She explained that she had worked through the estate agent’s bond originator and that she was getting no feedback.

I got a grin on my face….

Click Here to Read the rest of : Can You Trust Your Bond Originator?

Interest Rate Hike Warning!!!!

In the latest Property Barometer newsletter, Johan Loost, property strategist at FNB has warned of possible interest rate hikes in the future.

What does that mean to you? So where to from here?

Well, he suggests that now is a time to tread with caution for a few reasons:

• Firstly, at 10% prime, history suggests that we may be at or near to the bottom of the interest rate cycle.

Interest rates will go up at some point. History also tells us that recent rate hiking cycles have been by 4 to 5 percentage points.

It is essential to be pro-active and make financial provision for the possibility of a 4-5 percentage point interest rate increase at some point in future, and if you cannot fund such an increase, rethink expenditure commitments.

• Secondly, there is the important issue of massive future hikes in Eskom tariffs in the next 2 years, and similar increases in municipal rates and other utilities’ tariff cannot be ruled out, given the need for big infrastructure upgrades in the coming years.

I would suggest that significant provision be made for such household-related
cost increases in the coming years too.

These are the comments of Johan Loos, if you require advice on your home loan or how to consolidate your debt into a current bond, don't hesitate to contact me:
http://gpfmortgage.co.za/contactus.html

Is a Home Loan Rate Cut On The Cards?

Cees Bruggemans, economist at FNB seems to think there might be a possible future interest rate cut.

In his latest newsletter he referred to the: Dollar's strapless bra starting to slide

I thought that was hillarious, but ultimately it makes sense, because he said that the rand is strengthening against the Dollar and other major currencies are following the same trend. This means we'll pay less for imports, but also earn less income on exports - nonetheless, it could mean a home loan interest rate cut.

He ends off by saying: The Dollar's strapless bra hasn't yet fallen off, possible still supported only by a thread....

So let's see what Gill Marcus and her team decides at the next monetary policy committe meeting on October 14.

If you'd like any information on SA Home Loans please don't hesitate to contact me by following the links.

Bumpy Ride for 100% Home Loans!

If you thought you could arrive at a show house, sign the deal and all is finalized, think again. These days getting a home loan is not easy and certainly not for the faint hearted.

I'm not saying that getting a home loan is impossible, but you really have to know your stuff, or even better still, have someone who knows their onions do the deal for you.

Currently there are only 3 banks/lenders that give 100% home loans and it's not easy to get.

One late payment or arrears account on your credit profile and you're declined. You have to have a squeaky clean record to get 100%.

Fact is, while some 78% of home loan applications were successful in the 2005 and 2006 boom times, only around 45% of home loan applications are currently successful.

The amount of debt you have in relation to your income is something the banks take very very seriously. Your affordability is crucial and will make or break the approval of your home loan.

If you are thinking of buying a home in the future, call us first so that we can work out your affordability in line with the banks rules and regulations. You'll get a pretty good idea of what type of home and home loan you will be able to afford.

Calling all ABSA account holders

Are you an ABSA banking client looking for a home loan?

Until 30 April 2010 they'll be offering special deals for individuals looking for home loans of R500 000 - R1 500 000 (excluding building loans, investment property, vacant lant, and fixed rates)

Although they haven't disclosed what's going to be making these deals so special, I'm guessing better interest rates.

If you're one of those, don't hesitate to contact us or click here for more information on ABSA home loans

Home Loan And Debt Consolidation Tips

A cheaper debt consolidation alternative is to consolidate your high interest debt into your home loan. However, if you decided to follow this route your next goal should be to pay off your home loan debt as soon as possible.

It’s does not make financial sense to consolidate credit card debt into your mortgage loan and then to stretch out those payments over a 20-year period. Sure, it will improve your immediate cash flow, but over the long term you will lose a lot of money.

Another mistake you should avoid is to finance nonessentials like overseas holidays with your equity you have build up over time. It makes no sense for example to pay for a 2-week overseas holiday until the day you’re old and gray.

Home Loan Tips

Interest rates are on the way down and a good strategy would be to maintain your current payments. This way you can pay off your home loan quicker without it having such great impact on your lifestyle.

Instead of spending your bonus at the end of the year, why not making a lump sum payment into your bond. Since interest rates are calculated daily, you can reduce the interest you have to pay by linking your cheque account with your bond account and paying your salary into that account

Another idea is to deposit your VAT payments into your access bond which will help you to save even more on home loan interest.

For more useful and huge interest saving tips and information visit my website on: http://www.gpfmortgage.co.za/sa-home-loans.html

How do Interest Rates Affect Your Pocket?

Today, reserve bank governer, Gill Marcus, announced that the repo rate will remain unchanged at 7.00%. This means that the prime home loans rate will also remain unchanged at 10.5%

What would a cut of 0.5% mean in your pocket?

To put it in simple terms, a home loan of R500 000 at prime (10.50%) over 20 years would work out to +/-R4,948 pm (excl insurance).

If you were able to get a home loan rate of 0.50% below prime, or 10.00%, that would mean your installment would be R4,785 - a saving of R163.00

These amounts would be doubled up in the case of a R1 mil home loan.

So at the moment that home loan would cost +/- R9,897 pm, and with a 0.5% cut it would be R9,570 pm, a saving of R327.00 pm

These amounts may not seem significant, but if you take it over a year, that's a saving of R3924, and that's NOT INCLUDING INTEREST!

If you put that R327.00 back into your home loan on a monthly basis, you'll pay off your loan in 18.16 years and not 20 years.

Doesn't seem like much? Further consider this... the interest on that home loan will reduce from R1,316,051 to R1,167,953 - That's a saving of almost R150 000 over the period of the loan!

All because you put that additional R327.00 back into the bond every month.

Imagine what would happen if you made that R500?

Want more tips and tricks on how to reduce your rate on your home loan or for a refinance home loan, please don't hesitate to contact me through www.gpfmortgage.co.za/contactus.html

Banks Cutting out Discounts

Clients are reeling because some of the banks, namely Standard Bank as well as ABSA are not letting originators choose the attorneys that will register the bonds anymore.

The implications?

Many originators that have been in the business a long time have built up relationships with certain attorneys. What many have done was to have an agreement in place that if they referred a client to that attorney to attend to the bond registration the client would receive a substantial discount.

These discounts were even up to 50% of the attorney's fee, which ensured a big saving for the client.

For instance, on a R500 000 bond, if the the client got a 50% discount he would only have to pay the attorney +/- R3078, now, that amount doubles up to R6156.

You can further double up that amount on a R1 000 000 bond.

If the bank chooses the registration attorney, the originator has no relationship or agreement in place, which means the client loses out.

Where will this end?

How to Boost Your Credit score When Looking for a SA Home Loan

SA Home Loans: When looking for a home loan it is important to try to increase your credit ranking. In general, the better your credit standing, the more beneficial credit terms you'll get.

When you have had a low credit standing you'll be at the mercy of the banks who will be able to charge you interest rates way above prime.

Fix Errors On the Credit reports

The two biggest credit agencies in South Africa namely, Trans Union and Experian. So the first thing you should do is to get a free credit report and search for for errors in your record. You should act right away to get it fixed, because if you apply for any kind of SA home loans your lender isn't just going to take your word for it that there are mistakes on your credit report.

You should not Apply For Debt When Applying For SA Home Loans

Do not make the mistake of running around and applying for credit cards or car financing until after your home loan is approved. Remember that looking for new credit temporarily brings down your credit score.

Pay Your Debt That's Near The Limit

Credit balances which are over 50% of your credit limit brings down your credit score. In general, try and keep balances below 50% but for optimum benefit try to keep balances below 30% .

To put it differently, if your credit limit is R10, 000, attempt to bring the balance right down to R3, 000. This will help to boost your credit score. Your credit score will increase immediately once your balance is decreased.

For the best results one could clear your credit card debt in full each month. However, don't close your accounts, since that may lower your credit score. What’s key here is the % of your total credit which you're using. The lower it is the better.

Pay Your Accounts on Time

Please don't make late payments. Paying your bills before its due is one of the simplest ways to increase your credit standing. It shows the bank that you take your responsibilities seriously and that they can expect to be paid on time also if they grant you mortgage finance.

So, its not that impossible to give your credit rating a boost, but the biggest thing is that you have to take steps .

Beware of Hidden Home Loans Costs

By Zulika van Heerden

Home Loans: At some point or another we all, except a fortunate few, need a home loan to be able to purchase a property.

In addition to the monthly installments there are also other costs you need to be aware of. What are these costs?

There are at least 4 additional costs to keep in mind after you purchase a property:

1 - Rates and taxes (utilities)

These are calculated on a monthly basis and varies according to your use of water and sewrage facilities, it also includes refuse removal and the largest portion is calculated according to the size of your plot.

2 - Home Owners Insurance

This is an insurance that covers you if there are damages to your property caused by storms or other natural disasters. The bank or lender will always suggest you use their insurer, but you don't have to because these are often quite a bit more expensive than outside insurers, so be aware and shop around.

3 - Monthly bank fees

The bank or lender that has granted your home loan will also charge you a monthly fee to manage the account. The maximum they may charge according to the National Credit Act is R57.00. This fee will vary from bank to bank and will also be less, depending on the bank, if you use their insurer or more expensive if you use an outside insurer. However, the amount may never be more than R57.00.

4 - Life Insurance/Home Loan Cover

Life insurance or home loan cover is mandatory at most banks, so that in the event of the death of the breadwinner or spouse that both the bank and the remaining familiy members are protected. The bank is protected in that the entire bond is paid off (provided the life cover is sufficient) and your family benefit too because they won't be burdened with a monthly bond repayment.

These are the 4 major home loans costs that you'll encounter after purchasing a home - remember that when purchasing a sectional title property all the above costs, except for 1 and 2 are normally included in your levy, therefore you needn't worry about those.

For more information on home loans or other eye-opening articles please visit our website on: http://www.gpfmortgage.co.za/

When last have you tried to apply for Home Loans?

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If you have ever wanted to apply for a home loan, now is potentially a really a difficult time.

Why do I say so you ask? Well with the recession just “officially” over, the banks have still not changed their risk-averse attitude, which means they’re not easily granting loans.

Firstly, before you apply for home loans, make sure you have a squeaky clean credit record. Any sniff of anything negative will cause the banks to decline the application.

Secondly, make sure you know which bank requires what percentage deposit. And if you do need one, make sure you have enough. Sometimes they will even ask for proof of the funds before they start to work on the application.

The application itself isn’t difficult, but it is the way the information is presented and what you say in your motivation.

The motivation is one of the most essential parts of the application as it “speaks” to the credit manager without him or her just seeing the black and white figures on the page.

If you approach a reputable mortgage broker for a home loan you would not need to worry about this because they would do it all for you.

Home loans are essential for home ownership if you do not have the cash to purchase a house. Essentially it’s where the bank gives you money to buy an appreciating (increasing in value) asset.

So, in conclusion, don’t take on the hassle on your own, let a mortgage broker do the legwork for you.

If you need more information about home loans or how to apply please visit our website at http://www.gpfmortgage.co.za

Are Standard Bank Home Loans Still Being Approved

Standard Bank: Are they still approving home loans? The short answer would be yes. The home loans department has been inundated with bond applications since they re-introduced the use of mortgage originators to their panel.

During the early part of the year Standard Bank Home Loans chose to end their relationship with all originators. After lengthy negotiations they eventually agreed to re-introduce mortgage originators to the value offering they offer clients.

Mortgage originators play an integral role in the home loans business received from the banks and can also help to sift through transactions that should never have been presented to banks.

Applying for a home loan through a bond originator will also help you because you don’t have the stress of applying to all the banks and follow up daily. To add to this, you only have your home loan consultant to speak to, not a different person every time you phone.

Applying for a home loan through Standard Bank is also a much smoother process with a mortgage originator because they will submit the application electronically directly onto the bank’s home loan software.

The home loans department is now up to date with their applications and are processing them quickly.

For more information on Standard Bank Home Loans, visit our website.

Standard Bank Home Loans for First Time Buyers

Standard Bank Home Loans: Millions dream of owning their own home. You can get your first time buyer home loan fast and realize the dream of owning your home with the assistance of an expert home loan consultant with banks competing to get your business.

First time buyers are often caught off guard at how complex the home loan approval process. If you’re looking for a home loan and you’ve never owned a property there are some things you can look at to make the home loan process less complicated.

Standard Bank Home Loans – Educate Yourself

First time buyers must educate themselves on the buying process before making contact with a home loan consultant. There are so many options when getting a first time buyer home loan. There are friendly and helpful home loan professionals that can assist you with making the correct decisions.

You must shop around before trying to apply for a first time buyer home loan. Find out if there are deposit requirements and find out the repayment terms that will suite your budget. You have the option of a 20, 25 or 30 year term and can choose a variable or fixed interest rate.

Often it’s difficult to choose which home loan is the right one for you because there are so many options available. You need to take your long-term goals into consideration, how long you’re planning to stay in the home and what your financial situation is at the moment. A professional and well-informed home loan consultant can assist and give you advice in showing you which would be the one best suited for you.

Use a Broker to Help You With Your Standard Bank Home Loan

The application for a first time buyer home loan doesn’t have to be nerve-wracking experience. There are so many first time buyers that have had invaluable assistance from home loan consultants ready to point you in the direction of a bank willing to give you a home loan.

Applying also doesn’t have to be difficult. If you’ve chosen a reputable home loan consultant, let them help you make good decisions for your unique situation. Many home loan consultants will let you apply online, which is a fast and easy way to get your home loan approved.

So, if you let a Standard Bank home loans broker assist you the process needn’t be stressful or frustrating.

SA Home Loans – Are You Paying too Much Per Month?

Face it; the manager at your bank is not going to help you decrease your monthly home loans installments. Why should they?

Are you finding yourself having to deal with various issues with SA home loans, credit cards and personal loan installments? A huge problem with rising debt is that it becomes more and more difficult to pay off only the interest, not to mention the debt capital itself.

If you are a normal South African, you are probably balancing work, putting out fires, working long hours and dealing with other issues, and the last thing on your mind is thinking about saving money on home loans.

The last thing you have time for is wasting time in a bank or talking to a call centre consultant.

SA Home Loans Issues SA Home Owners Have- So Where Can We Find The Solution?

Imagine…you are able to save a lot of money on your home loan, and at long last you are able to put away money for savings!...Less stress and your family’s financial future is secure.

It probably sounds too good to be true, but, if you have the right tools, information and resources, it will come true.

It’s said that the first step to overcoming a challenging situation is to acknowledge that there is a problem and that a change is needed.

If you continuously do the same things over and over again you’ll keep getting the same results.

As South Africans, we pay too much for debt, especially SA home loans. We often do not realize what effect higher interest rates have on our finances.

If you can decrease the interest rate on a home loan of R700 000 from 12.5% to 10.5% you will save R965pm or, from another aspect R231 438 in interest over the home loan term and that’s not including other costs and charges.