October 14th, 2009
I can still vividly remember the wedding that happened just over a month ago. I’m getting down from the clouds though and it’s time to face the real world. We are now embarking on the purchase of our first, and maybe most, valuable asset, our house. As a couple we now have to buy our first home and to do that, we have to get a remortgage. This is really intimidating as a lot of money is involved and a mortgage will be over our heads for a very long time. So we have to be educated about this so that we have the best mortgage possible.
It appears that my credit standing is crucial in qualifying for mortgage. So far I have not had trouble with mine because I am thus far able to pay for my existing loans on time. The next step is for us to figure out how much we can afford. I have dreams of how our future home would look like. I wish for a nice fireplace, a patio, and a nice backyard. Now we have to see how much we have to or can afford to fulfil this dream home. It’s reassuring to know that the money we would be lent will be compared to the money we make to ensure that we will be able to pay for it.
Now for some good news, since we are first time home buyers, it appears that we can apply for special mortgages. This would provide us with financial assistance to help with this very important first investment. This can include the following: offer grants, forgive loans, limit the fees that the lenders will charge, defer payments, or subsidize interest costs. But I’m told to still do some research on these as first time mortgages may not have all of these.
There are also other home mortgages available to first time home buyers like us. The most common is the Federal Housing Administration (FHA) loan. This is available in most banks and other financial institutions. The good thing about this is that it only requires a 3 percent down payment. This is easier to be approved.
Other conventional mortgages are those that have 15-30 year terms. This means that we would have to make fixed monthly payments for a span of 15-30 years. At the outset, the interest rate is fixed which means that the monthly payments will not change.
Another type of mortgage is the Adjustable Rate Mortgages (ARMs), which, as the name implies, has varying interest rates. These interest rates are raised or lowered as based on an index. Seems to me that I would have to be more careful with this and study this more as this would mean periodic changes in our budget.
I think then the next step I would have to take is to write down all these different types of mortgages and make studied comparisons of them to see which ones are really right for us and which one can get us our dream home.
Tags: Getting your first mortgage
Posted in Mortgages | No Comments »
October 14th, 2009
I am considering getting life insurance but it seems to me that there is a deluge of information available that is pretty confusing. However, I really feel that I have to start investing in life insurance while I am still young. I have seen how difficult it is for families when their breadwinners have a serious accident, becomes critically ill, or dies. The family’s income is significantly diminished or sometimes they lose their primary source of income. A life insurance would really help in making me feel more secure in the future and also take care of my loved ones.
At its most basic, life insurance is a legal agreement between a person and an insurance company. If the person dies while the contract is in force, the insurance company then pays a specific amount of money free of income tax to the person or persons named as beneficiaries. More than these, a good life insurance would provide for other expenses. This would include funeral expenses, taxes, the need for housekeepers and child care, and credit card bills payment. In most cases though, the beneficiary can use the money in any way that he or she sees fit.
To ensure that I can get the best life insurance possible, I would have to make a survey and compare the life insurance policies of different insurance companies. The policy I choose would also depend on how much I can pay for every month and for how long. It is also important for me to see how much family my beneficiaries would need in the event of my death. This would then determine what type of policy will work best for me.
The most common type of life insurance is the permanent life insurance. This would be good to have for dependents so that they have income and financial support. This would require regular quarterly, semi-annual, or annual payments for a set period of time such as 5 years. In this type of life insurance, the payout is assured at the end of the policy and the policy also accumulates cash value for as long as it is not used. This would have premiums that are considerably higher than other life insurance such as term life insurance. However, the insured person is more assured that his beneficiaries would be financially cared for.
One of the inexpensive forms of life insurance is the term life insurance. This is also one of the simplest. Term insurance gives the largest immediate death benefit for a smaller amount of money than those needed in traditional life insurance. This type of life insurance provides coverage for a specified period of time such as 5, 10, 20, or 30 year periods. This life insurance is temporary and does not accumulate cash value. It is then important to remember when the term life insurance is about to end so that it can be renewed.
It would appear that I need to make comparisons and take careful consideration of the different types of insurance to make informed choices for the future of my family.
Tags: Gaining Life Insurance
Posted in Insurance | No Comments »
