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Directory:Jennifer M. Schelbert (view source)
Revision as of 02:51, 9 March 2010
, 02:51, 9 March 2010Have added an article called mortgage myths
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== http://ezinearticles.com/members/mem_pics/Jennifer-Schelbert_86680.jpg Jennifer Schelbert ==
== http://ezinearticles.com/members/mem_pics/Jennifer-Schelbert_86680.jpg Jennifer M. Schelbert ==
Mrs. Mortgage is a mortgage broker firm operating in Melbourne, with resources able to stretch around Australia.
Mrs. Mortgage is a mortgage broker firm operating in Melbourne, with resources able to stretch around Australia.
You should contact a professional such as Mrs. Mortgage before committing yourself to any mortgage.
You should contact a professional such as Mrs. Mortgage before committing yourself to any mortgage.
==Mortgage Myths for Home Owners & Potential Home Buyers==
'''Redraw Facility - Paying extra pay’s your loan down:'''
Not necessarily, if you have a redraw facility attached to you’re home loan and you pay extra funds into it, the extra funds sit in the redraw and are available for you to redraw.
The extra funds paid into the account do impact on the amount of interest you pay but the extra funds are not actually being paid off the principle of the loan.
If you want to pay extra off the principle you need to contact your Bank or Lender and increase the actual monthly repayments.
'''Assets are the same as income:'''
No matter the strength of your assets (for instance how much property you own or gold bricks you have hidden under the mattress), what makes the difference is your capacity to repay the loan through ‘regular substantiated income’, such as payslips and group certificates.
When it comes down to servicing, a Bank or Lender will only lend as much as people can afford to repay. The amount of income earning capacity you have, will ultimately determine how much you can borrow.
'''It’s the credit card balance, not the limit that counts:'''
When it comes to credit cards it’s not about the balance on your card or cards, it’s the total credit available that counts. Having a large range of credit does not necessarily equate to a good credit history. The same applies to ‘Lines of Credit’.
'''A fixed rate is always safer than a variable:'''
Every home loan is different – so too are the needs of each individual and family. What is important to remember is that fixed rates are calculated by capital markets over the period you sign on for, whether that be for three, five or seven years. If variable rates go down during this fixed period, you could end up paying a higher interest rate compared to the standard variable.
When making the decision to fix, it is worth reviewing your budget, mortgage plan and strategy. Once a loan is fixed, if you suddenly decided to sell your home and or want to change back to a variable loan, you will be faced with break costs which can amount to thousands of dollars.
'''Making your repayments minimum and monthly is the best strategy:'''
Not true. In fact, the interest on a home loan is calculated daily and is charged monthly, so the more regularly you make repayments, the less interest you pay over the life of the loan.
'''A bad credit history doesn’t matter if you eventually pay it off:'''
Your credit history, records any missed or defaulted payments on such things such as credit cards, interest free contracts and mobile phone plans. A patchy credit history can haunt you – even if it is very old or just a one off small amount. There are two major credit reporting agencies that record all of these debts and lenders consult these agencies before they complete your loan application.
'''100 per cent home loans = no money upfront:'''
Most people think that a 100 per cent home loan means that they do not have to pay any money upfront – however, this is not true. A 100 per cent home loan does cover the property purchase price, but does not extend to the additional upfront fees involved in buying a home such as legal fees, Lenders Mortgage Insurance, purchase & mortgage duty.
'''Cheapest is the best:'''
A ‘cheap as chips’ interest rate may be a good incentive to sign on the dotted line, but beware – in many cases these loans may have higher fees and less flexibility, costing you more money over the life of the loan. A standard variable loan at a slightly higher rate with flexible features, such as the ability to make additional and lump sum repayments, can save you more money in the long run.
'''Personal debts can be rolled into a new home loan:'''
So you have a car loan and credit card debts, and you want to roll all of these into your home loan? Makes sense, as the interest rate on your mortgage will be lower than your current rate. But, first home buyers are not usually able to just throw all their debts together like this. Usually you have to build up equity in the property and then use this equity to service the additional debt.
'''Start by paying just the minimum amount:'''
Many first home owners pay only the minimum monthly repayment, as they adjust to the new financial commitment. However, at the start of the loan you are really only paying interest so by paying more than the minimum, you quickly reduce the amount of interest and principle on the loan. As interest is calculated daily, repaying twice a month instead of once per month can also save you thousands in interest.
'''Refinancing saves you money:'''
Perhaps you have just bought your first home, and you are enjoying all the benefits of your own home. Your first time mortgage is going well, but perhaps you fixed your rate six months ago and now rates are coming down, or maybe you want to switch to a different lender. Refinancing sometimes costs money. In the way of exit fees for existing home loans, and settlement fees for the new loan. However, the market is quite competitive currently and some lenders are giving all the power to the home owner. Shopping around and refinancing your home loan can save you thousands over the life of you loan, but can also end up costing you more, so talk your possible choices through with your mortgage broker before making your decision.
'''Mortgage Insurance protects the borrower:'''
More commonly known as Lender’s Mortgage Insurance, this form of insurance protects the lender, not the borrower. The less deposit you are able to pay at application, the higher the premium you pay to compensate risk. Generally if you have more that a 20% deposit you are not required to pay Lender’s Mortgage Insurance.
== Consumer Guide To Comparison Rate Lending In Australia ==
== Consumer Guide To Comparison Rate Lending In Australia ==
Plan to repay the loan as quickly as possible; take advantage of redraw and offset facilities and make additional repayments where possible. Remember, you pay interest on every dollar owed, every day. The faster you reduce your loan the less exposed you are to the danger of a market dip.
Plan to repay the loan as quickly as possible; take advantage of redraw and offset facilities and make additional repayments where possible. Remember, you pay interest on every dollar owed, every day. The faster you reduce your loan the less exposed you are to the danger of a market dip.
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'''Why Use A Mortgage Broker/ Why Mrs. Mortgage'''
Why do property buyers use a mortgage broker to find their finance?
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Being a 'mortgage' broker is a lot like being a 'marriage' broker.
There’s this bride looking for a husband. She wants a husband for life; not just for the next few months.
To avoid making a mistake she consults a reputable marriage broker.
The broker knows all of the available suitors. He’s dealt with them before.
This one might have plenty of gold and jewels but he’s also pushing ninety.
This one is tall, dark and handsome but he’s as poor as a church mouse.
This one is both rich and handsome but he has a history of leaving broken hearts wherever he goes.
The marriage broker’s job isn’t to recommend the first man to come along.
It certainly isn’t to recommend the one that is paying the largest amount of money and it isn’t to recommend someone that is destined to be a disaster.
The happy ending to the story is obviously an ending where everyone is happy.
Finding the right home loan can be a very similar story.
Firstly, a good mortgage broker knows who to call and generally knows which banks or which lending institutions are likely to suit the property buyer’s situation.
(There are many different banks and lenders offering over seven hundred different home loans).
The broker (after doing their homework) then recommends two or three banks (or lenders) to the property buyer and explains the features and benefits that are available with these loans.
One lender may offer a redraw facility, another may let you pay off the loan quicker without any penalties, another might be willing to talk to self-employed people.
Every lender offers different benefits and facilities.
In the past if you got all the benefits then you usually paid a higher interest rate but these days the banks and lenders are very competitive.
There are some amazing products out there but no two are alike.
My job is to find the right home loan that meets all of my client’s needs and wants.
It’s just a matter of knowing where to shop.
The mortgage broker then helps to set up the loan. This might be quite straightforward or it might be complex.
It might take a couple of days or it may go on for weeks.
The first thing I do is find out EVERYTHING that I need to know about my client (and their financial situation).
I expect them to be completely honest with me and I’m completely honest with them. (My business is to organise & obtain finance... it’s not PR).
I work for my client. I don’t work for the banks or lenders.
Sure the bank writes me a cheque when the deal is done but my clients’ interests take precedence over everything else.
Nothing that I do is hidden or below the table.
My clients always know who is paying me and how much.
So my advice is: ''Choose your mortgage broker wisely then listen to their advice''.
* Jennifer M. Schelbert Dip. Fin. Serv./ FinMBM/LEND is a director of Mrs. Mortgage Pty Ltd, a licensee for Choice Aggregation Services, a member of COSL and a full member of the Mortgage Finance Association of Australia.
Phone 1300 735 161
== External Links ==
== External Links ==