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If you are new to borrowing and are just looking for your first home, then you probably are unsure about how mortgages work, and what the various types of mortgages are. If you are about to get your first mortgage, then you need to know the basics of what mortgages are and their various features. Here is some useful advice on the basics of mortgage lending:
What is a mortgage?
A mortgage is the loan that you take out to pay for a property. The loan is split into the capital and interest. The capital is the amount you have actually borrowed to buy the property, and the interest is the amount the lender charges you for the privilege of borrowing. There are various types of mortgages, but in general the two main types are repayment mortgages and interest only mortgages. Repayment mortgages are ones that require you to pay back the capital and interest each month,Air Jordan. Interest only mortgages require you to pay just the interest each month and then the final capital amount at the end of the mortgage term. Whatever type of mortgage you are looking for, there are a number of features you should consider:
Interest rate
The interest rate of the mortgage is very important, because the lower the interest rate, the less you will pay back over the loan term. Mortgage rates are lower than most other types of loans, at around 5 or 6%. However, you should shop around for the best interest rate,Air Jordan Pas Cher, as even .5% difference can mean a lot more to pay back over 20 or 30 years.
Exit fees
When you take out a mortgage, you agree a length of time over which you will repay the loan, known as the mortgage term. Mortgage terms usually range from 15-25 years. However, during this long period of time you might find a better deal or want to change your mortgage terms. If you leave during the mortgage term to use another lender, then the current lender will often charge exit fees to allow you to leave. This amount can be quite high, and is usually a percentage of the amount you still owe. You want a mortgage with low interest rates, but also make sure that you are fairly free to change lenders if required.
Insurance
As with all loans, you will be offered insurance on your mortgage, in case you are ill, out of work or die and cannot make the payments on the mortgage. If you die, then having insurance will allow your family to continue to pay the mortgage even without your income. When getting mortgage insurance, make sure that you are not paying too much for it and that your other insurance policies do not already cover you. If you aren’t covered, then getting mortgage insurance is a good idea.
How do you get a mortgage?
Mortgages can be obtained from banks, specialist mortgage lenders and online lenders. If you are looking for a mortgage, you should shop around for the best deals before committing to one lender. In order to get the mortgage, you need to show proof of income, and how much the property you want to buy is worth. The lender will then determine how much they can afford to lend you. It is often a good idea to discuss the amount you can borrow before looking at property, because then you will have a maximum budget when looking for your new home.
A good CPA is worth their weight in gold. A cracker jack attorney can save your bacon when it comes to upholding your legal rights and due justice. What happens when you ask them for assistance with something like your capital gains tax problem when you're ready to sell your highly appreciated asset?
Chances are, you may get incorrect or incomplete advice which may result in the unnecessary loss of a lot of cash and income growth potential.
I am a great believer in working closely with competent CPA's and Attorneys. As a matter of fact, many times it is an absolute necessity. To complete a good Capital Gains Tax Saving Strategy, the Financial Advisor, CPA and Attorney should all be in harmony so that the client can hang onto as much gain as possible.
That said, an incompetent or unknowledgeable professional can really cause great financial harm. Just because someone passed their CPA or Bar exam at one point does assure that they are well versed on capital gains treatment. A good professional will either admit to their lack of knowledge, or take the initiative to do the proper research to bone up on the subject.. One may have to pay for their research time, however, as most do nothing for free.
Case in point; I have a client in the mid-west. She has been having great difficulty finding a good tax professional in her area (fairly rural). She needs a good professional, as we are considering doing partial 1031 exchanges with her property. The first person she called told her she had no options but to pay capital gains tax on sale.
I set out to find her someone that knew what they are doing. I contacted a "find a good CPA" type of site and told them what I was looking for. They gave me a name and I called them. The fellow I spoke with seemed to be on the same page, so I had him contact my client.
I then got an email from my client. Someone from his office had contacted her. She told my client she was knowledgeable on capital gains treatment and proceeded to give my client blatantly incorrect tax advice without knowing what she was doing or taking a complete financial workup.
I called the CPA I talked to and relayed what the "assistant" said. He promised to contact my client and straighten out the misunderstanding. Then, much to my dismay, he contacted the client and gave more wrong information!
I am not a CPA or licensed tax professional. I can go to the IRS website to verify information I am forwarding, however. I proceeded to find the correct information and email it in writing to both my client and the "tax professional".
Needless to say, my client will not be using this particular CPA. What a complete waste of precious time and energy, however. This is exactly what I was trying to avoid in the first place.
I have had very similar experiences with attorneys,Moncler Pas Cher. They may be great at some things they do on a regular basis. However, many will not do their research on something they are not familiar with before dismissing it out of hand. This is a great disservice and can cost a client a huge sum of proceeds.
The moral of this story is: make sure you are consulting with experienced and knowledgeable professionals when exploring capital gains tax strategies. I have found that if all parties are on a conference call, the correct information can be discussed amongst all, and if there are conflicting opinions, everyone involved can produce the correct information from a qualified source and disburse it to all parties.
A professional team is crucial when implementing a capital gains tax strategy. Don't take the advice of someone who dismisses something out of hand without giving specific reasons to both you and the party recommending the strategy,Moncler Doudoune Femme.
After all, if you needed brain surgery, you wouldn't go to your general practitioner would you?
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