Login To Your Account

1-800-982-8445

Financial Freedom Community

This site is a resource for Financial Education, Debt Solutions and Tools to assist with Credit Management. All the resources on this site are free of charge. We encourage visitor feedback, Tell us what you want to see more of! Sign up for news & updates and we'll keep you posted on the latest!


Navigation

Home
Bankruptcy
Community Resources
Consumer Protection
Employment Resources
Financial Assistance
Health and Human Services
National Resources
Seniors Resource Center
Tax Resources
Getting Ready to FIle Your Federal Tax Return
Transcript - Getting Ready to FIle Your Federal Tax Return
Info Graphic - Getting Ready to FIle Your Federal Tax Return
The Importance of filing your Tax Return or Tax Extension on Time
Transcript - The Importance of filing your Tax Return or Tax Extension on Time
Info Graph - The Importance of filing your Tax Return or Tax Extension on Time
Most Common Tax Filing Errors
Transcript - Most Common Tax Filing Errors
Info Graphic - Most Common Tax Filing Errors
Owing Money To The IRS
Transcript - Owing Money To The IRS
Info Graphic - Owing Money To The IRS
What to do with your tax refund
Transcript - What to do with your tax refund
Info Graphic - What to do with your tax refund
Consumer Personal Loans
Credit Card Debt
Advantages of Making Credit Card Debt Payments on Time and Other Tips
Avoiding Credit Card Traps
Credit Card Counseling - Learn Credit Management Tips
Credit Card Debt and Simple Ways to Consolidate Them
Credit Card Debt Consolidation Nationwide Epidemic
Credit Card Debt Consolidation Solutions
Credit Card Debt Help for Senior Citizens
Credit Card Debt Reduction
Credit Card Debt Solutions That Can Help
How to Pay Your Way Out of Credit Card Debt
Paying Off Your Holiday Credit Card Debt
Prevent Identity Theft With a Credit Freeze
Saving Money on Your Credit Card Bills
Terminate Credit Card Debt Without Consolidation
Tips on Credit Cards, Part 1
Credit Collection Laws
Credit Repair Organizations Act
Fair And Accurate Credit Transaction Act
Fair Credit Billing
Fair Debt Collection Practices – Know Your Law
Statute of Limitations
The Fair Credit Reporting Act
The Fair Debt Collections Practices Act
The Truth In Lending Act
Credit Counseling
Can Consumer Credit Counseling Help Avoid Foreclosure
Credit Card Counseling
Credit Counseling a Must for Bankruptcy
Credit Counseling Benefits
Credit Counseling Can Reduce Your Debt
Difference Between Credit Counseling and Debt Settlement
Free Credit Counseling to Help Manage Your Debt
Using Credit and Debt Counseling to Manage Your Finances
What Can Credit Counseling Offer You?
What is Credit Counseling
What to Ask a Credit Counselor?
Credit Education
Balance Transfers -- Are they really free?
Transcript - Balance Transfers – Are they really free?
Info Graphic - Balance Transfers -- Are they really free?
Consumer's Rights
Establishing New Credit
Finance Charges
What Are Secured Credit Cards
Transcript - What Are Secured Credit Cards
Info Graphic - What Are Secured Credit Cards
Credit Reports and Scores
Credit Repair After Bankruptcy
Do you Know the Benefits of Checking your Credit Report?
2016 Understanding Consumer Credit Guide
DCC Educational PDFs
Debt Consolidation
4 Valuable Tips on Debt Consolidation
Become Debt Free With Financial Advice
Benefits of Debt Consolidation
Bill Consolidation Loans
Bill Consolidation Advice to Help With Debt
Credit Consolidation: Is It Worth Taking?
Debt consolidation and Ways to Avoid Scams
Debt Consolidation Explained - What Happens if You Don't Pay?
Debt Consolidation Loans
Debt Consolidation Loans for Payday Loan Debt
Debt Consolidation Non-Profit
Debt Consolidation Now Will Improve Your Credit Score Later
Debt Consolidation Provides Relief from Financial Stress
Debt Consolidation Services Helps to Clear Debts
Debt Consolidation – Find Relief To Your Financial Stress
Debt Management Program
Debt Management Program Will Ease Debt Burden
Do You Need Debt Consolidation?
Get a Debt Consolidation Loan to Manage Bad Debts
Government Debt Consolidation Loans
Government Debt Consolidation Loans for Student Loans
How to Consolidate - Debt Help - Consolidate Your Debt Payments
How to Consolidate Bills Effectively When Left in Debt
How to Consolidate Debt
Let the government help you consolidate your debts
The Advantages of Credit Consolidation
Understanding Debt Consolidation Loans
Debt Girls
About The Girls
Debt Settlement
Debt Settlement Scams
Info Graphic - Debt Settlment Scams
Transcript - Debt Settlement Scams
Elderly Can Benefit from Debt Settlement
Financial Tools & Calculators
Bill Reminder Tool
Bill Reminder User Guide
Calculators
Car Loan Calculator
College Savings Calculator
Credit Card Payoff Calculator
Mortgage Loan Payment Calculator
Retirement Calculator
Savings Calculator
Loan Modification Guide - Do It Yourself
Frequently Asked Questions
Step 1: Prepare yourself
Step 2 Gather the necessary documents
Step 3 Know what to expect
Step 4 Contact your lender
Step 5 Review your loan-modification plan
Step 6 Finalize the approval and begin making payments
Phone Apps
Home Buying
Build or Buy a Home
Choosing a Real Estate Agent
Home Equity Interest Rate Charges
Home Equity Line of Credit
Home Equity Loan Fees
Lease Buy Backs
Transcripts - Lease Buy Backs
Info Graphic - Lease Buy Backs
Managing Your Mortgage
Mortgage Basics
Mortgage Debt Elimination, 3 Things You Must Know
Quick Guide to Loan Modification
Transcript - Quick Guide to Loan Modification
Info Graphic - Quick Guide to Loan Modification
Real Estate Laws
Refinancing
Renting vs Owning
Interesting Money Articles
12 Amazing Facts about Credit Card Debt
12 More Interesting Facts About Money – Part 2
24 Amazing Pictures of Money
Introduction To Budgeting
7 Steps to Successful Budgeting
All You Need to Know About Budget Basics
Basics of Personal Budgeting
Budgeting - How Much?
Debt Management and Prevention Using a Budget
How to Pay Off Debt – Start Budgeting
Maintaining and Budget Planning
Manage Your Debt by Learning How to Budget
The Basics of Budgeting
Transcript - The Basics Of Budgeting
Info Graphic - The Basics of Budgeting
The Importance of a Household Budget
Managing Debt
1 in 10 Having Wages Garnished
Advanced Fees For Unsecured Loans
Info Graphic - Advanced Fees For Unsecured Loans
Transcript - Advanced Fees For Unsecured Loans
Debt Relief The Issue of Forgiveness
Get Out of Debt by Changing Your Financial Habits
Personal Finance Management to Reduce Debt
Start Early Teaching Kids Money Management and Savings
Saving Money
Banking & Credit
Energy Saving Tips
Info Graphic - Energy Saving Tips
Transcripts - Energy Saving Tips
Enjoy the Holidays Without Breaking the Bank
Info Graphic - Enjoy the Holidays Without Breaking the Bank
Transcript - Enjoy the Holidays Without Breaking the Bank
How 'Charge Offs' Effect You
Insurance & Housing
Money Management Means Setting Goals
PREPARING YOUR BUDGET FOR A WORSE CASE SCENARIO
Save Money When going to work
Spendaholic
Transportation Savings
Utilities and Savings
What Debt Should You Pay First?
Young Couple Finances
Student Loan Debt
Student Loan Default Penalties
Consolidate Student Loans
Student Aid
Student Loan Tips for Recent Graduates
Student Loans and the Credit Squeeze
Types Of Debts
Auto Loan Prepayment Penalties
Balance Transfers
Credit Card Minimum Payments
Gambling Debt Problem Gambling and Bankruptcy Connection
Holiday Credit Card Debt
Ideas To Save
Inherited Debts?
Six Easily Avoidable Causes of Debt
Ways to Pay Off Holiday Debts
Video Library
Personal Finance Video library
Tax Tips Video library

Free Consultation




McAfee SECURE sites help keep you safe from identity theft, credit card fraud, spyware, spam, viruses and online scams

Latest Headlines

Latest Infographics

Most Popular Articles

Mortgage Basics

There are several different mortgage options available to consumers today. Each one has certain aspects that will make it more or less desirable. The following information is a brief overview of the different types of mortgages available and some things to be considered with each.

 

Mortgage Debt Elimination, 3 Things You Must Know
For those people who are eagerly looking for mortgage debt elimination, it is essential that they should know a few things about the subject.

Fixed Rate Mortgages-
A mortgage with an interest rate that does not change during the entire term of the loan. These are typically available in 10,15,20 and 30, year terms.

  • Short Terms (10 to 15 years)
  • Have lower interest rates
  • Have a shorter time period to pay back the principle- because of the shorter term the monthly payments are higher, but it allows more to be applied towards the principle and less to interest each month.
  • Builds equity faster
  • Have higher monthly payments- because of which you may qualify for a lower loan amount
  • Are a good choice if you’d rather build equity faster and pay less in interest than buy a more expensive home

Longer Terms (20 to 30 years)

  • Qualify for a larger loan amount
  • Have higher interest rates
  • Will have a lower monthly payment
  • Are a good choice if you don’t plan to move or refinance for at least ten years or if interest rates were low when you locked in the rate

Adjustable Rate Mortgages (ARM)
Also known as a variable-rate loan, usually offers a lower initial rate than fixed-rate loans. The interest rate can change at specified time periods based on changes in an interest rate index that reflects current finance market conditions, such as the LIBOR index or the Treasury index. The ARM promissory note states maximum and minimum rates. When the interest rate on an ARM increases, the monthly payments will increase and when the interest rate on an ARM decreases, the monthly payments will be lower.

It’s important to understand all the aspects of an adjustable rate before you make your decision. These are some things consider;

Benefits to an Adjustable Rate Mortgage include;

  • Adjustable Rate Mortgages have a lower initial interest rate then a fixed rate mortgage. The difference may qualify you for a more expensive home.
  • Adjustable Rate Mortgages are a good choice if interest rates are high when youre looking to close.

Other things to consider;

  • Adjustable Rate Mortgages have defined adjustment periods to determine how often the interest rate can change. The initial period could be as short as one to three years, or as long as seven to ten. After that the rate is usually adjusted annually.
  • Once the initial period is up, the interest can be adjusted based on an index plus additional points, known as the margin.

There are limits to the amounts that an interest rate can increase or decrease on the first change date after the initial period, on each subsequent periodic adjustment and over the life of the loan. As an example an interest rate may have a cap of 3-5 percent over the life of the loan and never be increased more than 1% in an adjustment period. Meaning it could go up 1% per year however would never go higher than the original percentage plus 5%.
Consumers should always look to see what the maximum interest rate could be. There is generally no limit on the possible reductions, but the cap of the interest rate is important.

Balloon/Reset Mortgage-
A mortgage with monthly payments based on a 30-year amortization schedule and the unpaid principal balance due in a lump sum payment at the end of a specific period (usually 5 or 7 years). The mortgage contains an option to reset the interest rate to the current market rate and to extend the maturity date provided certain conditions are satisfied.

Specifics of Balloon/Reset Mortgage include;

  • The monthly payment schedule of a Balloon/Reset Mortgage is based on a 30, year amortization schedule.
  • At the end of the Balloon period (typically 5-7 years) the balance of the mortgage becomes due. This might be a good option for consumers that do not plan to be in the home for that long. A good example would be if you were purchasing the home with the intent to remodel and sell it as an investment property.
  • After the balloon period is up, a consumer can reset the mortgage at the published market rate at that time.
  • Balloon/reset mortgages typically come with a slightly lower initial rate than many other mortgage types.

 

Bi-Weekly Mortgage Payment Option
This is a fixed-rate mortgage in which payments are made every other week, instead of monthly. Typically, it is a method used to shorten the term of a 30-year mortgage. Simply stated this works by taking your monthly payment amount, and dividing it by two, and then you pay that amount every two weeks. That means you will be paying 26 “half-payments” a year. The equivalent of 13 monthly payments, with the 13th monthly payment applied entirely to the principal balance.

    This simple adjustment has a dramatic impact on the length of the loan, a 30-year loan can be paid off in about 23 years through this method. The important part of changing to a Bi-Weekly mortgage is making sure your lender accepts your payments and correctly credits the extra portion to principle.

    With all of the different options available for mortgages a consumer may find themselves at a loss for understanding. Each option will have its own features that will make it appealing or less desirable. It will ultimately be up to where the consumer stands and what they are hoping to accomplish. A consumer should speak with their mortgage broker to see what options are best for them.

For additional information on mortgage types visit;

Fannie Mae or Freddie Mac.

McAfee SECURE sites help keep you safe from identity theft, credit card fraud, spyware, spam, viruses and online scams