How Do You Protect Your Investments This New Year? (carpentry)

January 19th, 2010 admin Posted in employment |

By Vijay Koragappa Shetty

Fearing of repossessions in case you were to default your mortgage or housing loan? Simple, you need not worry in case you are not able to pay back your equated monthly installments on time. There are myriad of reasons for not paying your mortgage amount such as loss of job, sickness, accident or redundancy, you may be bed ridden and the sole bread winner of the family.

There is no need to panic when you are sick and you have loan instalments to repay. There need not be any fear of collateral confiscation too. You have every reason to protect your collateral that is your house. It is the most valued possession and your life time investment. Do not let others ruin your most valuable possession, you can safe guard them now!

Loan protection cover helps you to be on time with your mortgage payments. You may choose to cover up to 25% more than your loan repayments. This will help you cover your food bills, utility bills, insurance bills and credit card repayments in case you were to be redundant. Take a wise move this New Year and get your secured loans covered under a comprehensive insurance cover.

Do not fall prey to any mortgage miselling. No lender can compel you to take a protective cover along with a home loan. Neither can he mislead you by saying an insurance cover is part of the loan you take. It is at your disposal to get an insurance cover. You can either opt for it or not, based on your requirements. But it is advisable to take an insurance cover, if you have a huge amount of loan to pay and you are not sure if you can make your payments on time, for another 10 years.

If you want to change the price of the insurance, you are free to do so. Reviewable premium plans are available with some insurance companies. You can cross verify with your respective insurance companies if they have this option as these are not widely sold.

The first method is to assume a fixed mortgage interest rate, typically 10%, and reduce the amount of life insurance and critical illness cover in line with this assumption. This means that irrespective of the mortgage amount outstanding, the life insurance and/or critical illness insurance payable at claim will be that which would have been payable assuming the mortgage had been run at an interest rate of 10%.

Comparing different mortgage insurance plans also helps to attain better rates!

Vijay Koragappa Shetty, Expert Author, Platinum Status. Information on Redundancy policy: Quotations for Redundancy Policy

Get more information on: Mortgage Redundancy Protection

Tips to Keep Up Your Mortgage Payments on Time!

By Vijay Koragappa Shetty

It is quite horrifying to know that you have accumulated negative credit score and have a huge pending arrear. The loan bills are piling up and you are unable to concentrate on your work. What can you do to avoid this situation and make your payments on time?

Refinance mortgages with a fixed rate have become popular as a way to use this asset to reduce the monthly payment and put extra money aside. When you refinance your mortgage, you can take advantage of the equity in your home and if put to use wisely you will benefit from the remortgage.

You just have to follow these steps, it is simple and will make you be more organised.

Extra cash

Extra equity value

Shorten the length

Low remortgage rate

If you have been unable to make your payments, what could be the reason behind it? Simple, you cant afford the equated monthly installments (EMI) every month. It may be high due to the rate of interest on your loan. If you think, the current base rate is lower than what you are paying then you must switch over to another rate plan. If you have a fixed rate loan, you must switch over to a floating loan. This helps you pay less in comparision to your earlier rate plan.

Extra equity value: If you think your house has accumulated additional value with the boom in real estate market, then you can pledge your refinance mortgage as against the higher value collateral (house).

Extra cash: With an increased collateral you will get better rate of interest and extra cash. Make your borrowed funds affordable to repay. Avail extra cash and pay back on time with an easy pay back scheme.

Shorten the length: If you opt to refinance, you can shorten the duration of your mortgage. The new plan offers you better payment scheme, a more flexible approach. This way you can request for shorter duration on your loan.

-Mortgage protection payment insurance helps safe guard your payment in times of a crisis situation. May be you are redundant, feeling sick or have met with an accident and bed ridden. You may be unable to pay back during this period. Hence, obtain a secured insurance plan against your payments. Breathe a sigh of relief!

Other options that you can make use of are:

Lower down your payments for a set period

You can also consider extending your term to lower down your premiums.

charge your interest only for a while, if you’ve got a repayment mortgage (usually you pay capital and interest)

Request for a ‘payment holiday’.

Vijay Koragappa Shetty, Expert Author, Platinum Status. Information on Redundancy insurance: Redundancy Insurance Cover

Get more information on: Income Payment Protection Scheme

Find Physical Labor Job Listings Online