Variable or Fixed-rate Mortgage?

Every here and there, on advertising, you see and hear about this – which one will suit better to you; fixed rate mortgage or variable rate! Selecting the right one can make your worries over – say for next 10 years. But the decision should not be taken hastily.

Actually a lender would offer different rates for different types of mortgages. This is basically picked out on financial risk to the company and you. When the client is willing to take the risk, the rate of interest will be lowered as a special offer. On the other way round, that is when the lender takes the risk more, the rate automatically becomes bit higher. When the period is longer, the risk will be higher too for the company.

Variable rate mortgage is better suited to persons who might tolerate higher risk and have a flexible budget. On the other hand, fixed-rate mortgages are best for first time buyers with low risk tolerance.

Effective debt reduction technique

When you are in huge debt either you have to file bankruptcy or you can go for some debt management programs. On some extreme cases there might be no other way than filing for bankruptcy. Everyone wants to be free from debt. But it is difficult to avoid it completely. People should not lose their hope or give up when they are facing difficulties to meet their financial obligations. In that case some good efficient debt management company can save you from this bad situation by handling it effectively.

Debt reduction actually gives you some space to breath when you are drowned in debt. So that they can pay off comfortably. People who have piled up in debt might gain from this option. In the actual case the debt management plan that suits you best, must be approved by the creditors. Once it is approved the debtor has to pay accordingly to the repayment term.

A discussion on endowment plan

Till recently I did not know what an endowment plan is. And before my father’s retirement, I had to gather some knowledge on it. These are basically normal savings plans which has the life policy included in it. This is a blend of a life insurance policy and a retirement annuity. Here a policy holder is eligible to get a lump sum amount at the time of maturity or the same is paid to the policy holder if he deceases.

It is definite that this has a benefit of chance – in the event of your surviving you can reinvest the amount or can use it in your retirement. This eventually introduced the term “living benefit policy”. If you want to retire comfortably, there are many options of investments for you to choose from – stocks, fixed deposits, retirement annuities and endowment plans. If you are perplexed, please consult with an investment broker for better guidance.

Mortgage brokers : Are they helpful !

Mortgage brokers might be helpful; they might not be so if they don’t know the market. They have to be experts in their domain. Since there is a criteria to know the lenders thoroughly in order to know who these lenders may borrow and who they don’t borrow.

There are many countries in this world where these people can be held responsible for giving poor suggestion. Or they can even work for serving their own needs. This actually helped the system to keep clean.

Now eventually the question arises, why should you go for a mortgage broker’s advice at all ! There are many reasons, I am citing here some –

• The mortgage market is difficult to understand, so an expert broker can give you unbiased advice

• They understand better what the lenders prefer

• If they have a good network of client base, they can even offer deals that are not generally available directly through property agents or banks.