When you were first offered a loan for your house, you were probably really excited.  Your dream of owning a house came true and you finally were able to move out of that tiny one bedroom apartment.  That all changed after your first bill from your mortgage company.  Now you are afraid to open the bill that your mortgager sends every month.  When you’ve reached this stage, you probably need to start thinking about refinancing.

Refinancing your house may not always help you.  However, there are certainly reasons why you should consider it as a way to lower your monthly payments.  The two main reasons to consider refinancing are if you have an interest only or adjustable rate loan.  If you can qualify for these loans you can keep your payments from going through the roof if interest rates go up.

Researching the refinancing process

The process of refinancing your loan is very complex, so you are going to have to take some time to really understand it.  Start looking into the process on your own and then ask your lender for guidance.  They will let you know what the advantages and disadvantages of refinancing are.  You may think that you can’t trust your bank, but the last thing they want is to have to foreclose on your house.  They may not care about you losing your house, but they will care about losing your monthly check.

See if you can get a modification

Loan modifications can be beautiful things, even more so than a refinancing plan.  Your lender may not offer loan modifications, but if you are dangerously close to foreclosure you should look into it.  They are specifically designed to help you make your payments to avoid foreclosure.  It never hurts to ask.

Know your options

There are a lot of lenders looking for your money and they are going to offer competitive rates to get it.  Check with as many lenders as possible and don’t neglect to mention to them when you can get a better rate somewhere else.  It just might be enough to encourage them to lower their own rates.

Refinancing Can Save Your Home

Whether you are trying to save your house from foreclosure or just pay lower rates, you should consider refinancing.  It may not be a guaranteed way to save on your mortgage payments, but if you are approved it could make all the difference in the world.  Always do your research and know your options before you commit to anything.  Your current lender is usually the best place to start asking questions.

If you’re still debating the merits of buying versus renting or if you’ve recently bought a home but don’t know about all of the perks, you might be surprised to learn that homeowners get a lot of tax benefits. Don’t let the time limits on many pieces of tax credit legislation leave you flummoxed – there are plenty of ways to take advantage of homeowner tax benefits. These days, your options are more limited than they used to be, but you can still save substantially by making sure you get all of your deductions. Unfortunately, the home buyer tax credits of 2010 have expired (along with the home energy credits of 2009), but your deductible options haven’t – so make sure you’re getting all the benefits you deserve as a proud homeowner.

Mortgage Interest Tax Break

As long as you haven’t taken out a personal loan to pay your mortgage, you’ll be able to deduct the interest you pay on it. Why is this so wonderful? Because for most people, the majority of that mortgage payment is eaten up by interest – and this is a great way to find something positive about that scenario. It only applies if you’re paying for your first or second home (not third or more), but for most people, this means a nice tax break. Acceptable loans include mortgages, second mortgages, lines of credit, and home equity loans, but you can only deduct interest up to your home’s fair market value or $1 million. For most of us, that’s definitely going to be the “fair market value” – but just in case you’re the lucky owner of a mansion and $1 million loan, you’ll have to consider that if you’re filing taxes separately from your spouse, you’re each limited to $500,000 (or a total of $1 million).

Real Estate Deductions

Your annual property taxes are deductible, so if you don’t know how much you paid, check with your county tax collector. You should get a statement or receipt once a year showing how much you paid in property taxes. If you bought a home this year, check your settlement or closing statement to make sure you include any property taxes paid at that time. Just keep in mind that if you prepay any real estate taxes, they can’t be deducted until the year they’re required. For example, if you prepay some or all of 2012’s taxes in 2011, you can’t deduct them until 2012. When deducting, just look for line 6 on Schedule A (Form 1040) and fill out the necessary information.

Home Office Deductions

If you’re self-employed or work extensively from a home office, you can deduct a variety of expenses. You just need to make sure that the majority of your work time is spent in the home office, or at least ten hours a week (preferably more to avoid being audited). Your home office must also be its own room and can’t share utility – for example, a kids’ play room that doubles as your office at night wouldn’t be eligible for deductions. However, if you have a room in your house that’s dedicated only to being your office, you can benefit from tax deductions. Expenses that can be deducted include repairs, utilities, insurance, security, and depreciation in addition to your mortgage and real estate deductions. It’s helpful to include these on your business taxes because it reduces the amount you can pay yourself in salary. To calculate the percentage of utilities you can deduct, divide the square footage of your office space by the total square footage of your home. Any expenses that are directly related to your home office are completely deductible – for example, having someone fix your crashed work computer is a deductible expense. You can also deduct purchases like equipment, tools, desks and other office furniture, and even advertising fees. If you’re in doubt about any specific expenses, ask a tax professional to confirm whether or not the deductible will be acceptable.

Enjoy the benefits of being a homeowner and take advantage of your tax breaks. It might mean a little extra work for you or your tax professional, but it’s worth it in the end. You’ll feel accomplished and you’ll even save some money – what could be better during tax season?

Bio: Maria Rainier is a freelance writer and blog junkie. She is currently a resident blogger at First in Education performing research surrounding online universities and their various program offerings. In her spare time, she enjoys square-foot gardening, swimming, and avoiding her laptop.

There are some essential tips for first time home buyers that can help you make better decisions when it comes to financing your first house. You might think that getting a great first home has to do with neighbourhoods and square footage, but what you really ought to be thinking about is finance. Most people spend a lot of time thinking about what they want their first home to look and feel like, but not nearly as much time figuring out how they will pay for it. Before you step foot into one house you should first plan out your finances so that you know what you can really afford.

Essential Tips For First Time Home Buyers

Tip One: Figure out what you can afford. Many first time home buyers make the mistake of allowing the bank to tell them how much they can afford by buying a home based on their loan approval amount. This is a huge mistake. They way to figure out how much house you can afford is through careful evaluation of your finances. Just because you can get approved for more money does not mean that you can afford to take out a loan for that amount. Be smart and only borrow what you can afford.

Tip Two: Do not forget the hidden costs of home ownership. If you have always rented a house you might not have had to pay all of the utilities, taxes, or insurance. One of the essential tips for first time home buyers is to make sure that every expense is included in their monthly budget and to get a loan that fits into that budget. If you neglect to include these expenses you could wind up with a mortgage that you cannot pay after you have paid all the other bills associated with your new house.

Tip Three: Save as much money as you can for your deposit. Saving a lot of money is difficult, but it can mean a lot of savings in the long run when it comes to your mortgage. The more money you have to put down the better interest rate you will be able to get which leads to less cost over the life of the loan. Also, if you have a significant deposit you can avoid costly mortgage insurance. Try to have between 5% an 10% of your loan amount for the deposit.

Tip Four: Check your credit file before you apply for  a loan. The better your credit score is the better interest rates and terms you will be able to get on your mortgage. Get a copy of your credit report and make sure that there are no errors on it. If there are some defaults or problems that will hold you back from getting the best rate fix them before you apply for your loan.

Tip Five: Get a pre-approval letter from your lender. The pre-approval letter lets the realtor and the seller know that you have the financing to purchase a home at a specific price. If you were to make an offer on a home without a clause in the contract that says “pending finance approval” you could wind up with a legal issue. Remember that those offers are legally binding contracts so do not sign one unless you already know that the bank has approved your loan amount.

Along with these essential tips for first time home buyers you should also be mindful of the fact that it is your first home. This house does not have to be your perfect dream home. You do not need a house to fit the four children that you plan to have, only the ones that you have right now. Get the house that you can afford and that suits your current lifestyle, not the life that you hope to have in ten years.

Timothy Ng is a personal finance writer, and has a real passion for encouraging people to compare credit cards to ensure they get the best deal. Check out his comprehensive guide to no annual fee credit cards where he provides an in-depth overview and analysis, to help you find a better deal.

Are you thinking of taking out a mortgage loan to buy a home? Do you want to have an idea how much you have to repay each month? If yes, you can take help of online mortgage calculator and determine your affordability.

Mortgage calculator – What it is

A mortgage calculator is a tool that gives you an approximate idea of your loan repayment affordability. There are different kinds of calculators, which calculate a mortgage monthly payment; so that you can determine how much amount you can borrow. Using this tool you can compare the cost of loan for different interest rates and can also find out the total number of payments you have to make to fully repay your loan.

Factors taken into consideration for calculation

To calculate the monthly mortgage payment, several factors are taken into consideration, which are:

• Total amount of loan
• Loan term
• Interest rate on mortgage
• Private mortgage insurance (if down payment is less than 20%)
• Your debt-to-income ratio
• Home insurance cost
• Cost of taxes related to property

Types of mortgage calculators

Depending on the type of computation, the mortgage calculator can be of the following types:

1. Interest only mortgage calculator: This calculator will give you an idea on the monthly payment amount, if you opt to take an interest-only mortgage loan.
2. Monthly payment calculator: This tool gives you an idea on the monthly payment amount for different types of loan.
3. Amortization schedule calculator: This calculator helps you to know the monthly principal and interest payments. You can also check that if you opt for a higher monthly payment, how your principal gets reduced and loan term shortens.
4. Adjustable rate mortgage calculator: In this calculator the initial interest rates remain low, so, monthly payments are also low. However, there is a risk of having to pay for higher interest rate in the future.
5. Early mortgage pay off calculator: You can determine how you can save money on interest, by finding out how soon you will be able to repay the mortgage.
6. Affordability calculator: This helps you to find out how much loan you can afford. It also tells you how much should be your monthly income to take out a certain amount of loan.

Benefits of a mortgage calculator

The several benefits that a mortgage calculator offers are:

• It helps you to know how much should be your income to get qualified for the loan
• It helps you to determine your loan repayment affordability
• With this you can calculate whether or not you should pay points to get a lower interest
• It also helps you to get an idea on the tax benefits on the monthly repayments
• It calculates the APR for your mortgage

Before taking out a loan, you should calculate a mortgage payment, so that you have an idea where you stand financially. This tool will help you to calculate a mortgage monthly payment, including the principal and the interest. If you know your loan repayment affordability, and be adequately equipped with finance, the home buying process won’t be an impulsive and reckless one.

Is it better to rent or buy a home? That is one of the age old questions that seems to be popping up more and more. Now that we have all been through the crash of the economy and the down turn in the housing market a lot of people are revisiting the option of renting. The choice between renting and buying is a difficult one that has to be based on the individual needs of each budget and family. What might be the perfect option for one family could spell disaster for another. Before you make any decisions it is important for you to understand why each choice could be good or bad and compare it to your own needs.

Benefits of Renting

Renting a home can be a great choice if you are only going to live in the area for a short period of time. It allows you to spend very little up front money and still get a nice place to live. You will also not have to worry about selling the home before your next move and possibly losing money on it because you have not gotten enough equity in the home to turn a profit or break even. Also, if you do not have a lot of money to spend renting is a very good choice. When you rent a home you can plan for the monthly expense of your rent payment. Other costs, like home maintenance and taxes are rolled into that rent and paid by the owner of the home. This means that you will not have to worry about the extra cost of a broken air conditioner or water heater. All you will have to do is contact the owner and they will handle the cost of the repairs.

Even if you can afford to buy a house you might still ask is it better to rent or buy a home? The answer is, sometimes it makes sense to rent. If you just do not want the responsibility of owning a home and dealing with maintenance or the possibility of it losing value then you might want to invest your money elsewhere. It used to be that buying a home was the best possible investment you could make with your money. Now, if you  have a significant amount of cash you may able to turn a profit faster by making wise investments rather then using it as a down payment on a house.

Reasons to Buy

While all of those reasons to rent sound good, there are also good reasons to buy a home. If you can afford it, a home is still a good investment. There is some risk that it will depreciate in value, but if you live in it for a long time you will likely be able to make the money you put into it back once it is time to sell. Also, if you have saved up a good amount of cash to make a large down payment you may be able to lower your mortgage payment to far less then you would have to spend on rent. This will allow you to spend the extra cash on other bills, investments, or home improvements.

If you are still wondering is it better to rent or buy a home, the answer might just be in the question itself. Those of us who are a little nervous about the cost and the fluctuations in the market might just rest a little easier in a rented home then in the one that we have a hefty mortgage on. Your home is probably the biggest purchase you will ever make, so do not buy one until you  are completely comfortable doing it. There will always be houses to buy and saving up more money will only put you ahead of the game.

This article was written by personal finance writer Timothy Ng from Sydney, Australia. He is genuinely passionate about helping people compare credit cards and helping them through researching to find the best low interest rate credit card.

CMG Mortgage has had a lot of positive press in regards to their Home Ownership Accelerator. We’re sharing what we are aware of, but if you know of any articles or news stories that are more current – please let us know in the comments.

Home Ownership Accelerator news

CNN Money
CNN Money says “For borrowers who want to pay off a mortgage faster, there’s a plan from the land Down Under that can add a little extra discipline.”
Read the full article at CNNMoney.com

Pleasanton Weekly
Pleasanton Weekly says “The way that you look at your mortgage could change.”
Read the full article at PleasantonWeekly.com

Bankrate
Bankrate.com says “The savvy part [is] being able to earn the mortgage interest rate on idle cash instead of the low rates paid on checking and savings accounts. [This] attracts customers that take a big-picture view of their finances.”
Read the full article at Bankrate.com

East Bay Business Times
East Bay Business Times says the Home Ownership Accelerator “could revolutionize the way Americans pay for their homes…”
Read the full article at Bizjournals.com

Here are some Home Ownership Accelerator reviews. These reviews come directly from CMG Mortgage marketing materials. We encourage you to leave your own review in the comments.

CMG Mortgage Reviews

“This loan has given me and my family freedom and flexibility to manage our own finances as well as the reduced financial worry about will we ever own our own home. Now we can confidently say YES!”
— Terry and Sheryle Pratt, Riverside, CA

“The reduction of principal as well as the availability of funds. No worry about checks clearing prior to making it to the bank. Using money for my benefit instead of the bank using it for theirs.”
— Jennifer B., Federal Way, WA

“I love the fact that I can deposit everything into one account and know that every unspent dollar is going towards minimizing my monthly interest payment now, even if I need the dollar at a later date. I love the flexibility for getting the money out such as using the time/direct withdraw card, check book, and online transfer.”
— Michael B., Waterloo, IA

“I love the fact that my balance decreases significantly… I cannot believe how just being a little more aware of leaving my money in the account the longest possible time will make me free of mortgage debt soon.”
— Janet R., Jacksonville, FL

“I gave up a 4.875% fixed rate to the Home Ownership Accelerator mortgage which has turned out to be a wonderful financial tool. It is one of the most innovative products I have looked at in the 25 years of my financial management experience. I was pleasantly surprised by how helpful everyone that I have worked with has been. I am a stickler for good customer service and this experience has been the best customer relations I have had in quite some time.”
— Gary and Gail Nelson, Yucaipa, CA

We’ve had some people email us asking for Home Ownership Accelerator loan specifications. Here’s what we know:

Home Ownership Accelerator Specifications

Loan type
Adjustable rate line of credit, based on 1-month LIBOR index.

Adjustment period
monthly (three and five year rate caps are now available)

Term
30 years

Lifetime cap
5% over start rate (1% rate caps are now available)

Minimum credit line
$100,000

Maximum credit line
$2,500,000

Minimum down payment
As low as 10%

Minimum credit scores
680 FICO (excellent credit)

Withdrawals
ATM/Visa P.O.S. card with 8 surcharge-free ATM transactions per month at any ATM, checks, online bill-pay, ACH, EFT.

Payments
Direct payroll deposit (required), EFT, ACH, Bank by mail.

Statements
Monthly. Online account access.

If you’ve come to our site looking for answers – look no further. Here’s what we know about the Home Ownership Accelerator loan from CMG Mortgage.

Home Ownership Accelerator

The Home Ownership Accelerator loan is a mortgage loan tied to your personal checking account. According to CMG Mortgage, the loan uses your income to cut thousands off the total interest you pay and take years off your pay off time. The company says it can do all of this without changing spending habits. And they won’t mess with what you put in the bank. Essentially, the magic happens without any interaction from you.

According to CMG Mortgage, the Home Ownership Accelerator makes one simple change in your financial life. It combines your checking account with your home loan. So you flow all of your personal cash against your loan balance.

Why does this make a difference?
The money currently in your checking account earns close to nothing. In your HOA account, your money may earn your home loan rate.

Here’s how they explain it:

1. Your income lowers your monthly balance.
2. The lower balance saves you interest.
3. The saved interest becomes extra principal payment.
4. This further lowers your balance, saving more interest.
5. This frees up even more money to reduce principal.
6. This cycle repeats itself each month, compounding your interest savings and accelerating the reduction of your debt.

What do you think? Is it too good to be true? We would love to hear from you – especially if you have a HOA mortgage loan. What is your experience with CMG Mortgage?