Your Mortgage is the Best Investment

For your highest and safest return on any investment it is time to pause and look up...to the roof that sits over your head because your home (due to the mortgage that goes along with it) is your best investment.



Would you believe it if you were told that with the investment market in Canada that there is a very safe and secure investment out there that pays around 7 percent annually? This is guaranteed, by the way, with no questions asked or big moves to be made. Would you think you were having your leg pulled?



Its Not Rocket Science



No, this is not something illegal and it's no pyramid or money scam, and no it is not some crazy hot tip on a stock that is going to sky-rocket.



..And no it has nothing to do with some kind of gambling trick or some hot horse out there that is going to dominate the competition in a race at the local track. None of these things just mentioned are guaranteed. Take a look at the past year and a bit, the time we have dubbed a "financial crisis" and you will be reassured of the fact that there are very few guaranteed investments.



It also doesn't even involve a guaranteed investment certificate (GIC), which are thought of as sometimes the safest guaranteed way to make good on an investment.



In fact, with a GIC nowadays, even if you are spending some serious bucks you would be lucky to get half of that percentage rate (the 7 % mentioned above) on a 5-year GIC.



Paying Down Your Mortgage



Well, in case you have not figured it out from the article title by now...the amazing investment opportunity that accomplishes all of this is actually the process of paying off ones mortgage. I know...sounds crazy doesn't it. Paying off our mortgages is the best investment?



Some people would probably even laugh at this thought but think about it, paying off your mortgage is the best investment you can possibly make; here is why.



..



Well beyond the fact that today's mortgage rates are still ultra low when compared to their complete historical past is the fact that it is almost completely impossible to find any investment out there, other than paying your mortgage down, that is going to be a sure thing in regards to yielding a higher after-tax return. In other words no other investment out there is going to result in two things...being guaranteed to yield a high after-tax return.



Still not following?Let's take a look at some math involving some money.



In the case of one's mortgage...your money.



Theoretically let's say you are locked into a fixed-rate (closed-rate) mortgage at 4 %; which is basically the lowest rate you will find right now in Canada currently on any popular five-year term mortgage from lenders in the country. This means that for every $1000 in principal you would be paying $40 in interest annually.



Perhaps you were to make a lump-sum payment of $1000. You would find that you have saved yourself $40 in interest and this would result in an effective after-tax return to you of 4 %.



Not too bad eh? Well it gets even better when you consider what it would take for you to have accomplished the same with a taxable investment in regards to generating the same return.



Guaranteed Returns



Let's talk you annual income for a minute. If you are someone who is in the 40 % tax bracket you would have to earn 6.7 % on a GIC to end up with 4 % after the government takes a big hack out of your earnings. If you can find a GIC that pays anything even close to 6.7% let me and every other Canadian know because you could make a lot of money selling this info.



Not to mention that you would probably want to pour into this investment a lot of your own money because you won't ever see this rate again.



Don't forget the language we are dealing with here is guaranteed returns. Obviously you could end up making a lot more money trading stocks or options. However, they are not guaranteed and in fact with that path you could end up losing a lot of money. The best part of paying off your mortgage is that the return you will be getting from it is risk-free.



It is not very often an investor hears those words..."risk free". It's a beautiful thing.



Remember next time you are cursing having to pay your monthly mortgage fee that in fact you are simply paying into the greatest guaranteed return investment known to man.

The Number Of Mortgage Deals Dropping

Industry figures have shown that the number of new mortgage applications approved by the major banks fell again in December. British Banker's Association (BBA) members approved 42,088 new mortgage loans last month, the lowest figure that has been seen since 1997 when the data started to be collected.



Analysts think that the easiest way to solve this problem is for the Bank of England to cut its interest rates, although this proposition is meeting opposition as well as support as the market is already in turmoil and this is almost an admission of defeat.



The amount of money advanced for home purchases dropped to ฃ15.1bn, a figure last seen in September 2005, and 10% less that December 2006.



The BBA's figures are in agreement with recent data from the Council of Mortgage Lenders (CML), who said that gross lending fell 25% in December to ฃ22.6bn, the lowest monthly figure since May 2005. David Dooks, BBA's statistics director said: "Mortgage lending weakened notably in the second half of 2007 as the credit crunch impacted on banks' ability to lend, at the same time, demand for mortgages also softened in the face of increased borrowing costs and lower disposable income.



"The combination of these factors is resulting in the marked market slowdown and weakness in house prices we are now seeing," he concluded.



Among the news of reductions and falling approvals, there is some good news; the figures showed that net lending increased slightly in December, this is after redemptions and repayments have been deducted. There was also a small jump in the number of loans approved for re-mortgaging customers, with 62,771 new loans given the go ahead, compared to 59,628 in November 2007.



Although if examined more closely this is not necessarily good news, people borrowing against their property is a desperate measure, one which is likely to be caused by the credit crunch and the strict measures in place to regulate unsecured lending.



The chief UK and European economist at Global Insight, Howard Archer, commented on this, saying: "The December BBA mortgage data provide yet further evidence that housing market activity is now being substantially undermined by both stretched affordability and tightening lending practices.



This adds to the already intense pressure on the Bank of England to cut interest rates in February, and to enact significant further reductions thereafter."



Despite that fact that Britain's house prices ended 2008 5-8% higher than when the year began, prices started falling during the second half of the year, under the pressure of higher interest rates. The Bank of England held its interest rates in January 2008, predictions of a February rate cut are prevalent. However Mervyn King, the Bank's governor remarked that inflation concerns may prevent this from happening.



The competition from brokers and adviser to purchase mortgage leads from other companies is red hot at the moment because the demand for mortgage deals is falling. The lower number of customers who are actively looking for a mortgage deal, results in brokers fiercely competing for business against one another.



BBA figures showed that unsecured lending from banks remained subdued in December, while the amount of outstanding debt on credit cards rose by only ฃ200m, a lower figure that expected because customers were repaying more than they spent.



An increase of ฃ400m in the borrowing through loans and overdrafts was also seen in December, and consumers also stashed ฃ1.9bn in saving accounts or investment schemes. This was a ฃ200m increase on November, but was less than the amounts deposited during September and October into banks and building societies.

Leading Regional Mutual Selects SDS Maps' to Streamline Mortgage Application Processing

9th October 2002, SDS Applications Ltd, one of the mortgage industry's leading providers of mortgage lending software solutions today announced that the Vernon Building Society is to use the โ€˜SDS Maps' software for its mortgage application processing. Vernon Building Society has nine branches in the Cheshire area, backed by a local agency network.







โ€œWe were impressed with the powerful architecture of the SDS system,โ€ said David Eccles, Systems Manager at Vernon, โ€œAfter reviewing many solutions, we chose โ€˜SDS Maps' because it offered the greatest flexibility for our needs.



The system is very easy to customise which allows us to meet the changing needs of our businessโ€.







โ€˜SDS Maps' is a fully integrated, web-based solution, handling a mortgage application from customer enquiry through to completion. The system features integrated 'mortgage application specific' workflow, case tracking, powerful document production facilities and customisable management information (MIS) functionality. It is capable of producing pre-application mortgage illustrations and has been designed to be flexible enough to handle future changes to compliance regulation.



At draw down, cases will be transferred electronically to the Vernon's accounting and administration system.







The Vernon are also planning to take advantage of the systems powerful e-commerce functions, these include;







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A 'Broker Portal' where introducers can login and access product searches, create new applications, track the status of applications in progress and view commissions earned and pending.



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Mortgage search facilities, where potential customers can find out how much they can borrow and details of the mortgage products that best suit their needs.



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Online applications to โ€˜Offer in Principle'. (Applications do not have to be completed in one sitting, customers can return to a partially completed form at any time, an application could even be started in a branch and completed later on a home PC).



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Compliant online quotations



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Status Tracking facilities







The application is currently in the user-testing phase and is due to go live in November.











โ€˜SDS MAPS' forms part of SDS's integrated suite of mortgage systems that include;



โ€˜IFAMAPS' โ€" Online Broker Support Module, โ€˜EMAPS' - for interactive on-line applications with status tracking and โ€˜MyPage' โ€" the customisable e-banking module.



About Vernon Building Society



Founded in 1924 in Stockport, Cheshire, the Vernon provides competitive housing finance, savings and investment products. As a mutual, the Vernon's philosophy is to provide a responsive and individual service to it's members.







About SDS Applications Ltd



SDS Applications Ltd is considered one of the mortgage industry's foremost providers of mortgage lending software solutions. The company offers an integrated suite of mortgage processing solutions for lenders and mortgage packagers.



Recent Clients in the Mortgage & Lending sector include GMAC RFC, Solent Mortgage Services, The Chesham Building Society, Barnsley Building Society, Cambridge Building Society, Universal Building Society and National Counties Building Society.







--- ENDS ---







For further information please contact:







Justin Belcher



SDS Applications Ltd



Tel: 01494 778863



press@sdsapps.co.uk















Or visit the Internet site at www.sdsmortgages.com.

Pricing Your Home To Sell

When you're selling your own property, whether it's a house, townhouse, condo, apartment, a finished lot, raw land, a farm, a ranch, or whatever, the first thing to get right is the price you ask for it. If you work with a broker, the legwork is done for you. When you work as a FSBO (for sale by owner), you need to figure it out yourself. Let's look at how to do just that.



Setting a Price



First, don't make the mistake of looking only at what you need to get out of it. It's important to know that, of course, but that number may, or may not, have any relationship whatsoever to market price.



It may be lower or higher than market price. The first is situation is great. The latter may require you to rethink whether you want to sell your property at this time.



If you price your property below market price, it'll be snapped up quickly. The problem, of course, is you'll leave a lot of money on the table. This will lead to a lot of seller's remorse.



If you price your property above market price, it may sit there unsold until the cows come home. If it's priced very much above market price, people won't even come and look at it.



The market place talks and it talks loudly.



So What's Your Goal?



Market price is nearly always a range of prices -- high, medium, and low -- not an exact price. You want to price yourself near the top of the market price range for your property. That way, you'll have flexibility to negotiate price if need be.



The only exception to the above scenario is if you're in a hurry to sell your property. In that situation, you should price yourself near the lower end of the market price range. Even if forced to do this, make sure you leave some wiggle room to negotiate with a buyer.



Buyers will always assume the listed price is negotiable.



How Do You Determine Market Price as a FSBO?



The first way is the simplest and most expensive. Have it appraised by an appraiser who works with one or more mortgage lenders. Call the firm who initially issued your mortgage loan and ask who they use in your area. Be sure the appraiser knows your purpose is to establish the asking price for a sale.



Using an appraiser can cost a few hundred dollars, but it can be money well spent.



In addition to helping you price your property, it can also be helpful to show a buyer with whom you're negotiating that an appraisal supports the asking price.



If you live in an area with a tight pattern of sales prices, you can check the price of sales in your neighborhood over the last three to six months. This is particularly true if you live in a subdivision with houses in a narrow range of sizes and styles. Many jurisdictions have this information online. If not, it is a matter of public record and should be available at the courthouse.



The more individualized and unique your property, the more difficult this approach. With a little work, however, you can learn a lot.



Another method for establishing a price is an online search. If you search for "pricing + house + your state," for example, you should find sites that will help you price your property. Some of these use real estate agents and brokers as resources, and that leads us to another option.



It's really unfair if you don't intend to use a broker to help you sell your property, but if that's your fall back position (if selling on your own doesn't work out), you might invite a broker to do a market analysis of your property for you.



Be up front. Explain that you're going to try it on your own first.



Even under those circumstances, many brokers are willing to help you evaluate the market price of your property without any charge to you. They also usually give you a presentation of how they'd go about marketing your property should you decide to use them. Listen to that carefully, too.



You can start evaluating whether you want to work with this person if you're not satisfied with your FSBO efforts. You also may very well pick up marketing ideas you can implement yourself.



A Note of Caution



Don't rely too heavily on what neighbors tell you in social situations about the sale of their own and/or other properties in your neighborhood. Listen, of course, but be aware that they often just know the original asking price and the fact that there's a buyer in the picture. They don't know that the asking price was lowered because of the condition of the house, a redecorating allowance was given, etc.



Don't talk to a neighbor and then think, "Well, that house sold for $X, my house is in much better condition; therefore, I should be able to get $X + $Y.



" Maybe so. Maybe not. Base your pricing decisions on the most solid information available to you, not neighborhood gossip.



If you base your pricing decisions on solid information and use good common sense, you should get a good result. In this case, a good result means a quick sale!

Barnsley Building Society UpgradesMortgage Application Processing to SDS Maps'

โ€œWe selected SDS's processing system over several other solutions,โ€ said Steve Lofthouse, Assistant General Manager (Systems) at Barnsley, โ€œSDS Maps has the flexibility and web-enabled technology we were looking for, and it combines all our mortgage processes into one system.โ€







โ€˜SDS Maps' is a fully integrated, thin-client solution, handling a mortgage application from customer enquiry through to completion.







Barnsley plan to take advantage of the system's powerful architecture to deliver the following



E-commerce functions:







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A 'Broker Portal' where IFAs and introducers can login and access product searches, create new applications, track the status of applications in progress and view commissions earned and pending.



ยท

Mortgage search facilities, where potential customers can find out how much they can borrow and details of the mortgage products that best suit their needs.







ยท

Online applications to โ€˜Offer in Principle'. (Applications do not have to be completed in one sitting, customers can return to a partially completed form at any time, an application could even be started in a branch and completed later on a home PC).







ยท

Compliant online quotations.



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Status Tracking.







The system features integrated 'mortgage application specific' workflow that systemises the underwriting process helping staff to focus on service provision. A task creation and management system monitors the whole process and allocates tasks to the most appropriate member of staff in order of timed priorities. Workflow will also enable case tracking to take place as all tasks are electronically recorded and the system will know at what point of the process an application is sitting.



Other key features of the system:







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Powerful document production facilities are an integral part of the system. All documents relating to an application are generated and merged in Microsoft Word format.







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The solution provides management with customisable management information (MIS) functionality, the system features a structured SQL database whereby staff can design and schedule their own reports using standard reporting tools.







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โ€˜SDS Maps' is capable of producing pre-application mortgage illustrations and has been designed to be flexible enough to handle any future changes to compliance regulation.



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SDS's solution allows two-way data transfers using Open XML.







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At draw down, cases then can be transferred electronically to the accounting and administration system.







โ€œSDS's staff are so easy to work with,โ€ continued Lofthouse, โ€œThey are professional, organised, helpful and have an in-depth knowledge of mortgage processing and the UK mortgage market. SDS's solution will allow for improved performance and functionality, which ultimately saves us both time and money.



I feel we have made the right choice in selecting SDS.โ€







The application is currently in the user-testing phase and is due to go live at the end of April.







โ€˜SDS Maps' forms part of SDS's integrated suite of mortgage systems which include;



โ€˜E-maps' & โ€˜IFA-Maps'- for interactive on-line applications, status tracking and IFA support and



โ€˜MyPage' โ€" the customisable e-banking module, which allows Lenders to provide affordable e banking services to their customers















About Barnsley Building Society



The Barnsley Building Society was formed in 1853, with nine branches in the Yorkshire area, backed by an agency network covering North Yorkshire to Warwickshire; the Society prides itself on its 'local' attitude to its members' requirements.



For additional information, contact Steve Lofthouse on 01226 733999 or visit the company's Website at www.barnsley-bs.co.uk







About SDS Applications Ltd



SDS specialises in the provision of systems and services to mortgage lenders. Since our inception in 1997 SDS have introduced new and innovative systems to the UK mortgage market, providing high quality applications exploiting the business advantages available using thin-client Internet technology. We have quickly become established as a leading supplier to this sector as a result of our cost effective solutions.



SDS leads the industry by putting its customers' success first.







Recent Clients in the Mortgage & Lending sector include GMAC RFC, Cambridge Building Society, Universal Building Society and National Counties Building Society.







For more information, contact Justin Belcher or Barry Yager on 01494 778863, via email at press@sdsapps.co.uk, or visit the Internet site at www.sdsmortgages.com

1% Mortgage Loans What's The Catch?

While there are several different types of 1% mortgage loans, there are really only two major keys to winning with a 1% mortgage loan.



The first key is to make sure the loan is set up correctly from the beginning.



And the second is to make sure you are using the loan correctly to gain the most benefit.



First, let's talk about how the loan works. Then we'll get into how to set the loan up correctly so you can reap the financial rewards these mortgage loans have to offer.



To start with, 1% mortgage loans have payment options. Each month when you get your mortgage statement you will have the option to make a 30 year fixed payment, a 15 year fixed payment, an interest only payment and a minimum payment at 1%.



Although you are given several payment options, you should only select the 1% minimum payment.



Why?



Because if you wanted to make a 30 year fixed, 15 year fixed, or interest only payment, you would be better off getting that type of loan.



Typically, these payments are higher with a payment option mortgage loan.



If you select the 1% minimum payment your first benefit will be a significant monthly payment reduction. Your mortgage payment will likely be cut in half. Of course, this is a pretty attractive first benefit for most home owners.



To compound the effectiveness of selecting the 1% minimum payment you should save what you save. For instance, let's say you refinanced your home with a 1% mortgage loan, paid off all your credit cards, and reduced your monthly payment by $1,000 a month.



Now, if you save that $1,000 a month for yourself instead of giving it to your creditors, you will have $60,000 in cash at the end of five years - And that's with a zero percent return.



Here's the second benefit to selecting the 1% minimum payment option:



Tax savings.



If you make an interest only payment your mortgage balance will stay the same. If you make a 1% minimum payment you are actually paying less than interest only. Therefore, you are creating deferred interest which makes your mortgage balance increase each month.



Before you freak out, keep in mind that deferred interest is mortgage interest and is therefore tax deductible.



Let's say your home is going up in value $2,000 a month. The 1% mortgage loan will allow you to take a small piece of that appreciation, say $500 a month, and turn it into a tax deduction.



So you are taking a small piece of your equity each month and turning it into a tax deduction. If you did not do this, all of your appreciation would be locked up in equity.



Equity is terrific and is certainly one of the many benefits to home ownership. But investing in equity will get you a zero percent return.



No one is going to cut you a check each month for the equity in your home. As a matter of fact, if you wanted to get the equity out of your home you would have to sell your home or get a loan. And you better qualify or you will not be able to get a loan.



So why not take a small piece of your equity each month, turn it into a tax deduction, and at the same time save $1,000 a month for your self? You will still have plenty of equity but with a 1% mortgage loan you will have cash AND equity.



If you do this for any length of time you will come out way further ahead financially than if you did a regular 30 year fixed or an interest only mortgage loan.



By the way, if the deferred interest is a concern, try making bi-weekly payments. Making a bi-weekly payment will reduce, and in some cases eliminate the deferred interest all together. Which means your mortgage balance would not increase.



How to set the loan up correctly:



1) The 1% payment option on these loans is only available for the first five years.



But you could actually keep one of these loans for 30 or 40 years. If you select a 40 year loan your monthly payment will be lower but the payment options will not last for five years. The name of the game is to keep the 1% payment for as long as possible. So get a 30 year amortization.



2) The 30 year, 15 year and interest only payments are tied to an index. Select a slower moving index like the MTA (Monthly Treasury Average) instead of a faster moving index like the Libor (London Inter-Bank Offered Rate).



So how can you lose with a 1% mortgage loan?



Answer- depreciation.



If homes in your area are rapidly going down in value, deferred interest could cause you to become upside down in the home.



But if your area is experiencing a 3% to 5% rate of appreciation and you save what you save by making the minimum payment, a 1% mortgage loan can have an incredibly positive impact on your financial future.



For more information about 1% mortgage loans and other mortgage related topics, please visit:



http://Mortgage-Training.



Mortgage-Leads-Generator.com



Please feel free to reprint this article as long as the resource box is left intact and all links are hyperlinked.

1st And 2nd Mortgage Refinance Loan - Refinance And Lower Mortgage Payments

Refinancing both your first and second mortgage will lower your monthly mortgage payment and qualify you for overall lower rates. It will also save you money on closing costs and application fees. And while you are looking at rates and terms, you can reevaluate your loan's payment schedule to better fit your budget needs.



Why One Mortgage Is Better Than Two



Lending companies prefer financing one total mortgage rather than two separate loans.



So second mortgage rates are at least a point higher than first mortgage rates.



Refinancing your two mortgages into one will qualify your for a lower rate mortgage. Since lenders charge flat application fees, you will save money by going through the process only once. Closing costs can also be cheaper.



Readjusting Terms



In all likelihood, your mortgages have different terms. Refinancing is a good time to reevaluate those terms and decide what would best meet your budget concerns.



If lower payments are your concern, then choose a longer term. While this will increase your total interest costs, it will ease your immediate budget concerns. Then when your financial situation improves, you can make principal payments to offset the interest costs.



When concerned about interest costs, it's best to opt for a shorter term with its lower rate. You can also pay points to further lower your rates. But this is only wise if you plan to keep the loan for several years in order to recoup the costs.



Separate Is Sometimes Better



In some cases, it is better to keep two separate mortgages to save money. In some instances, refinancing your mortgages individually will get you better rates overall. This is especially true if your total mortgage principal equals more than 80% of your home's value.



If you plan to cash out part of your home's equity while refinancing, you may also want to finance a second mortgage separately. Cash out refi loans automatically boost your loan's rate.



In order to find your best option, request quotes for refinancing your mortgages together and separately. Also look at several different lenders to be sure you are getting the most competitive offer.