What is the Best Deal For a Mortgage?

Few of us invest the time and effort into researching and securing the best deal for a mortgage to purchase our home.

For most of us, our house is the single most important and expensive purchase we ever make!

We invest a lot of time and effort into finding the perfect property in the best location and with as many of the features from our wish list as possible, yet, when it comes to finding the best deal for a mortgage, we take what is offered rather than researching and securing the best mortgage for our situation.

When you consider that the average homeowner will pay out more in interest over the lifetime of their mortgage than the home originally cost, you can see why getting yourself the best deal for a mortgage now, could save you tens of thousands of dollars in interest over the 20 ­ 30 year term of your home loan.

Your research for the best mortgages or loans and repayment options currently available can be carried out on the internet, thus making the whole process that much more convenient and time efficient for you.

Mortgages are not a “One Size Fits All!”

Mortgages come in many different forms and you need to be aware of the various forms in order to determine which one is the best deal for a mortgage to your unique circumstances.

Basically, mortgages fall into one of the following categories. Lenders will have variations of these basic categories, but armed with this information, you will be able to sort through the choices for just the right package.

Fixed Rate Mortgages:

Loan with an interest rate that remains at a specific rate for the entire term of the mortgage/loan. Approximately 75 per cent of home mortgages are this type. A fixed rate mortgage is often considered the best deal for a mortgage for first time buyers as you can establish a consistent relatively fixed budget of household operating expenses.

ARM’s or Adjustable Rate Mortgages or Variable Rate Mortgages:

A mortgage/loan with an interest rate that adjusts or varies with the changes in rates paid on Treasury Bills or bank Certificates of Deposit. In Canada, the rates vary according to the posted weekly Bank of Canada rates.

To offset the risk associated with an adjustable rate mortgage, some lenders offer various ‘capping’ options. Often, they fix or limit the maximum level to which the interest rate you are subject to can rise for a given period of time. Sometimes they fix the cap per year and sometimes for the lifetime of the mortgage.

Adjustable or variable rate mortgages can be very attractive as usually the rates are considerably lower than for fixed rate mortgages. They are an excellent vehicle for borrowers who are attentive to the rate fluctuations and prepared to ‘lock in’ their mortgage when interest rates start climbing. If you’re constantly watching the money markets, this may be the best deal for a mortgage for you.

Balloon Mortgages:

A mortgage in which the monthly payment is not intended to repay the entire loan. The final payment is a large lump sum of the remaining principal. Balloon mortgages are often only partially amortized and requiring a lump sum repayment at maturity.

It’s popular mortgage in the US for homeowners who aren’t planning to stay in their new home for more than 5 or 7 years. The advantage is that the interest rate is lower than a fixed rate mortgage however, the disadvantage is that if you remain in the home beyond the 5 to 7 year term, you would have to secure a new loan or mortgage to pay off the balloon mortgage.

Jumbo Mortgages or ‘Non-Conforming’ Mortgages:

In the US, Congress has legislated a conforming limit to the amount a mortgage is allowable for funding by Federal National Mortgage Association (a.k.a: Fannie Mae) and the Federal Home Loan Mortgage Corporation (a.k.a: Freddie Mac). The 2009 limit is $417,000; $625,500 in Alaska, Guam, Hawaii and the U.S. Virgin Islands.

Any loan or mortgage above that conforming limit is considered a Jumbo Mortgage. A Jumbo mortgage/loan allows you to borrow over the conforming limit, but for that privilege, you will incur higher interest rates. There are variations to the Jumbo Mortgage such as the Super Jumbo Mortgage, but I’m sure you get the basic picture.

Canadians have an equivalent referred to as a “High Ratio Mortgage” guaranteed/funded through Canada Mortgage And Housing Corporation (CMHC).

Now that you have identified which type of mortgage might suit you best, you need to consider repayment methods and you basically have two options:

Interest Only:

An interest only payment method can be combined with any type of traditional mortgage. Interest only payment periods almost never run for the entire term of the loan, so prepare to have your payment rise to include both principal and interest once the interest only period ends.

Principal and Interest or Capital & Interest:

Your monthly repayments are divided into an interest payment and a principal or capital repayment. In the early years of the mortgage period most of the monthly payment is swallowed up in interest but over time the balance reverses and you start to pay off more of the capital or principal borrowed.

So Many Mortgage Lenders… So Many Choices!

There are so many mortgage lenders offering such a variety of loan options that at first it can seem a daunting task trying to determine which lender most suits you and your circumstances and which Lender is offering you the best deal on a mortgage!

It is important to note that as you shop for a mortgage, each lender will perform a credit check prior to committing to the mortgage or loan. Each credit check remains on your credit record and could potentially reduce your credit score and eligibility for a mortgage or loan.

Incredible Mobile Phone Deals for Customers

Mobile phones have become a necessity to everyone from all the strata of life. It is the most effective mode of communications.

It gives the freedom to communicate from anywhere across the world at anytime. With such a wide approach, phone demands have increased in many folds but at the same time there are Mobile users who can’t afford to spend a lot of amount which high-end phone demand from a customer. To solve the problem of average mobile users many leading phone networks in UK are offering some incredible and affordable deals to the customers.

The leading mobile networks in UK are offering some amazing deals like PAYG (Pay As You Go) deal, Simfree deal, Pay Monthly deal, Contract deal and many other incredible deals for the average phone users, from which they can gain and use the services of the network in an affordable rate.

The leading mobile networks in UK like Vodafone, Virgin Mobile, Verizon, O2, Orange, T-Mobile and Three Mobile are offering these deals to the customers which users can avail from any online phone shop. They can find these deals on all the major brands of handsets in the UK market with the best of the features and applications. The latest phone deals come with some great features like Social Media (facebook, twitter, MySpace), High-megapixel Camera, WiFi, Bluetooth, GPRS, A-GPS and many other exciting features with loads of storage space.

The mobile phone manufacturers like Nokia, Samsung, Sony Ericsson, Motorola, LG, HTC, BlackBerry, Apple iPhone and other brands of mobile phone makers are offering their best models on deals to the UK customers which come with all the features we talked above. This is the time you should go and buy a mobile phone deal. You can always find the most suitable deal on better price with UK Online Phone Shop where you can compare the mobile phone deals before choosing one which fits your requirement and needs.

How to Find a Deal For You

How do you possibly source deals when trying to allocate a deal for yourself? There are several well-used methods of deal sourcing that many top property investors use.

Sourcing deals off estate agents is possibly the most lucrative way of sourcing deals but it is very difficult to be the number one caller on the estate agents list. Building a rapport is essential and possibly the easiest ways thereafter to source deals.

Leafleting is possibly the easiest ways to source deals, and it is really cheap as well. Leafleting is as effective as you make it, so if you go and deliver 500 hundred leaflets you arent going to get much of a response from this. However, if you deliver on a much bigger scale, say 20,000 you are sure to get more of a response. Hire someone to deliver leaflets for you if this is something that you do not want to do.

Word of mouth is always a benefit. If you have helped someone in the past then it is more than likely they will put in a good word to someone who are in the same kind of trouble that they were and will let them know that you were the person who helped them out of the tough spot they were in.

Being creative helps, a lot. Never miss an opportunity to market who and what you are because the more that you are in the public eye, the more someone will have interest in dealing with you.

Facebook Deals for Businesses – What, Why and How

Ask any shopaholic what their greatest wish is and they are sure to tell you how they look forward to receiving special offer and discounts on their purchases from their favourite brands. With the launch of ‘Facebook Deals,’ retailers are now able to fulfill their customers’ wishes by offering deals and discounts that can be passed on to them in real-time.

What is Facebook Deals?

Facebook Deals refers to Facebook’s discount shopping service that brings brands and customers closer together through mobile marketing. The service is available in US, UK, Canada, France etc. An extension of Facebook Places, with Facebook Deals, you as a business can offer special deals to your Facebook users when they check-in to your Place on Facebook. Thus, users can now not only share their whereabouts with friends & find out which of their friends are nearby but also keep tabs on the best deals in their neighbourhood and share them with their friends.

Customer Interaction – Availing Deals is Simple

To avail the best deals, users login to their Facebook with their mobile device, tap on “Places” & “Check In”. Next, if you are offering a Deal your business name will be flagged with a yellow icon under the list of their favourite places. Users can tap on your name to see details of your deal. Once they claim the deal by checking in, they can visit your business premises to redeem the discount. It’s as simple as that!

How your Business can Benefit from Facebook Deals
No matter how big or small your business maybe, with Facebook Deals, you can easily market your business to a large active user base on Facebook.

• Promote your Brand Name and Build Popularity
Every time a user checks-in to your Place and avails a Deal, their interaction with you is posted on their wall and their friends get to hear about it – a great way to popularise your brand name and attract the attention of other users.

• Win New Customers & Build Repeat Customers
Let’s say you’re a small coffee shop looking to attract new customers. When you promote your deal of free muffins with every coffee, chances are that people close to your cafe searching for a nearby coffee shop, read about your Deal and decide to come over – a perfect way to attract new customers. With a Friend Deal, these people may bring along many of their friends and create brand awareness for you!

• Build Loyal Customers
If you offer a deal that rewards customers every time they visit your store, you can build loyal customers who keep coming back to you for more.

And the best part, you do can do all this without having to share your revenue with Facebook.

How to Create a Facebook Deal for your Business?
To create a Deal, first claim your business. Next, follow these steps –
1. Click on ‘Edit Page’ on your Facebook Page
2. Click on ‘Deals’ in the left panel
3. Select the type of Deal you would like to offer – Individual Deal, Friend Deal, Loyalty Deal & Charity Deal.
4. Next, define your deal and specify how customers can claim your deal.
5. Click on ‘Create Deal’.

Participate in Facebook Deals and see how your business grows!