About Castle Point Mortgage
By Castle Point Mortgage | March 8, 2008
Our Satisfied Customers:
I just wanted to thank you for making my loan process as painless as possible.
You guys rock!!!! As far as I am concerned, you represent what is #1 in customer service. Thanks a million!
Roma E
FL
I would like to write to say how incredibly helpful, professional, and diligent you have been in assisting me in my endeavor to refinance. You sure demonstrate the heart and the wisdom of someone who is in the business for the right reasons… for whatever it is worth, thank you.
Wilson D
MD
Topics: About Castle Point Mortgage | Comments Off
5 Tips for Savvy Use of Your Home Equity Line of Credit
By Castle Point Mortgage | February 13, 2008
Author: Tim Paul
Tapping your home’s equity to pay college expenses, consolidate credit card debt or even to buy a new car or boat is common place. Many economists attribute the additional buying power afforded consumers through home equity debt as a primary reason the nation’s economy has been able to emerge from the recent recession. Yet, aside from simply allowing consumers to spendmore, the flexibility and efficiency of a home equity line of credit (HELOC) can provide the financially savvy person with the means to savemoney, make money or simply take advantageof opportune situations he or she might otherwise miss out on. Here are five tips to show you how:
Tip 1: Take Advantage of Higher Insurance Deductibles! You probably know that raising deductibles on auto and homeowners insurance policies can mean big savings on insurance premiums. If you increase the deductible on a homeowner’s policy from $500 to $1,000, you’ll cut your premium by as much as 25%! Yet many people don’t do this because they fear they may not have the necessary cash available in the event of a loss. With low-interest cash readily available through a home equity line of credit you’ll have the security and confidence you need to raise your deductibles and reap the savings!
Tip 2: Lock In Big Savings! Credit card companies (e.g. the GM card) frequently have shopping programs with names like “Main Street Savings” on a 30-day free trial basis. These programs allow you to buy discounted gift cards (20% discount) for major national retailers like Target, Sears, and Home Depot. The flexibility afforded by a home equity line of credit can allow you to purchase (during the free trial period) a large amount of discounted gift cards for major retailers you frequent. Then use these cards instead of cash or credit when you purchase everyday items (The cash you would have spent can be used to pay down the HELOC).
Although you pay low interest on the home equity credit line, you receive a front-end discount of 20% on everything bought. When combined with store coupons and sales, you can realize total savings of 70% or more! In short, a HELOC provides the low interest cash availability to take advantage of bargains like this that you might otherwise have to pass on.
Tip 3: Take Advantage of 0% Balance Transfer Offers! We’ve all seen no-fee credit card offering “0% APR” on balance transfers for 6, 12, and even 18 months. If you have a balance on your HELOC, you may be able to take advantage of these offers. Here’s an example of how: last year I accepted such an offer and promptly transferred $10,000 from my home equity credit line balance (which had a 4.25% rate). Then I cut up the card! For the next eleven months, I paid the monthly minimum credit card payment (3% of the outstanding balance) by writing a check from my home equity line of credit. In the twelfth month, prior to the expiration of the 0% offer, I paid off the remaining balance with another home equity credit line check. During the 12 months, I also made sure to continue my regular payment towards the HELOC at the same level, meaning that more of each went to pay down principal and less went to interest.
Net result: interest savings of over $350.00, lower principal balance on my HELOC, and a positive addition to my credit repayment history!
Tip 4: First Pay With a Rewards Credit Card! If you’re contemplating using your HELOC for a major purchase, you should consider whether or not the merchant your dealing with accepts credit cards. Why? Because it makes a great deal of sense to pay first with a rewards credit card and then pay off the card with your HELOC check. On a recent $14,000 bathroom remodel, I was able to charge plumbing services, cabinets, and almost everything else to my Fidelity/MBNA 529 College Rewards Mastercard. This card pays you back by putting 2% of everything charged into a 529 college savings plan. Result: $280.00 in college savings that would have been missed if I paid the bills directly with home equity credit line checks! Whatever rewards credit card you favor, it’s sensible to pay first with the card whenever possible. Keep in mind, though, you must promptly pay off the balance and not incur finance charges.
Tip 5: Replace Your 1st Mortgage with a HELOC! According to Money Magazine, if you have more equity than debt and plan to stay in your home for 3 years or less, you should consider replacing your first mortgage with a home equity line of credit. HELOCs are currently available around the country at rates of 4% or lower. Even if rates increase a full percentage point each year, they’ll still be low when you pay off the loan. Best of all, there are no closing costs with most HELOCS so you won’t have to worry about recouping them through interest savings as you do with a traditional mortgage refinance. A savvy person - using tip 3 in conjunction with tip 5 - might even move a portion of his mortgage to a 0% credit card thanks to the flexibility of a home equity line of credit.
Topics: Castle Point Mortgage | Comments Off
Reasons To Get A Home Equity Loan
By Castle Point Mortgage | February 8, 2008
Author: Tim Gorman
Using a home equity loan really depends on what your needs, wants and desires are that prompt you to take the home equity loan in the first place.
The most common reason people obtain the loan is for debt consolidation however other uses include home improvements, educational expenses, unexpected family emergencies, medical expenses and in some cases for big ticket purchases.
As expected debt consolidation is the primary reason many people obtain a home equity loan. The thinking is sound especially if they’re stuck paying anywhere from 17% to 21% in credit card debt. Department store cards are another money eater that using a home equity loan to pay off could be considered smart.
Paying for an education with the loan could prove beneficial in the long run but I’m hesitant to advocate taking out a loan for that reason. The only other reason I could recommend getting a home equity loan would be to pay for a home improvement project that could increase your home’s value and could also make you feel better about your house.
For absolutely no reason would I ever advise anyone to take a home equity loan out to make a big ticket purchase. It simply doesn’t make financial sense in the long run. As far as for medical reasons or family emergencies I would take that case by case to determine if it would be a smart decision.
Topics: Castle Point Mortgage | Comments Off
A Home Mortgage Makes Dreams Come True
By Castle Point Mortgage | January 29, 2008
Author: Smgenie
Getting a house of your own is a lifetime achievement and a home mortgage helps you in achieving this milestone much earlier than it would otherwise have been possible. In fact, the first home mortgage is also filled with a lot of emotion. A home mortgage is really something that makes dreams come true.So let us start with understanding what a home mortgage actually is?
A home mortgage is something that allows you to buy a house even if you do not have enough money to pay for it right away. This is made possible by borrowing money from someone and paying it back in monthly installments. The person who lends you money is called the home mortgage lender. The home mortgage lender lends you money for a specific period (up to 30 years) during which you are expected to pay back the money in monthly installments. There are certain terms and conditions associated with the home mortgage agreement and these terms and conditions govern the home mortgage throughout its tenure. Among others, the most important thing is the interest rate that the home mortgage lender charges you. Interest charges are the means through which the mortgage lenders earns on this financial transaction called home mortgage. Most home mortgage lenders offer various home mortgage schemes/options. The most important variation in these schemes is in terms of the interest rate and the calculations related to it. In fact, most home mortgage options are named after the type of interest rate used for that option. Broadly speaking, there are two types of home mortgage interest rates - FRM (fixed rate mortgage) and ARM (adjustable rate mortgage). For FRM, the interest rate is fixed for the entire tenure of the home mortgage loan. For ARM, as the name suggests the home mortgage rate changes or adjusts throughout the tenure of the home mortgage. This change or adjustment of mortgage rates is based on a pre-selected financial index like treasury security (and on the terms and conditions agreed between you and the mortgage lender). That is how mortgage works.
No matter what type of home mortgage you go for, you always need to pay back the entire home mortgage loan (with interest) to the mortgage lender. Failing to pay back the mortgage lender can result in foreclosure on your home and the mortgage lender can even auction it off to recover the remaining debt.
Therefore, home mortgage is a wonderful means of getting into your dream home much earlier in your life. Without this concept, you would have to wait for a long time for getting into that dream home. Really, a home mortgage is one of the best concepts from the world of finance.
Topics: Castle Point Mortgage | Comments Off
Get the Best Mortgage Deal
By Castle Point Mortgage | January 29, 2008
Author: Matt Ellsworth
Buying a house is no child’s play and more so when you are getting it on mortgage. It’s one of the most crucial decisions of your life and must be treated with all seriousness. Once you have done the initial analysis and introspection on whether you can and want to go for a mortgage, you come to the next stage i.e. hunting for the mortgage that is best for you. This starts with getting mortgage quotes. You might get the mortgage quotes through a mortgage broker or you might get mortgage quotes directly from mortgage lenders. Before asking for mortgage quotes, you must be very clear about your requirements (you don’t want to mess this up by getting wrong mortgage quotes because you had put in the wrong requirements). You can also get mortgage quotes through websites. There are several websites that can get you several mortgage quotes free of cost and within a short time period of 1-2 days.For getting good mortgage quotes, it’s important that you choose a well established mortgage broker/lender that has a good reputation in the market. Investing time in enquiring about and choosing a good mortgage broker/lender is sure to pay good dividends (this is especially true for mortgage brokers). Moreover, if you cannot trust a mortgage broker or a mortgage lender, then you would not be able to reveal the complete and correct details about your finances etc and hence you would not be able to get the best mortgage quotes. As such, you will be much more comfortable in discussing the mortgage quotes (and possible options) with someone you trust. Once you receive the mortgage quotes, you should be able to understand the various terms and conditions on it. If you don’t understand something on the mortgage quote or if you have questions about the mortgage quote, you should get them clarified with your mortgage broker or mortgage lender.
In order to ensure that you get the best mortgage deal, you must always get and analyze a number of mortgage quotes. Do not go with the first mortgage quote that you receive. Explore your options with various mortgage quotes. However, this does not mean that you ask everyone and anyone for mortgage quotes. You should get mortgage quotes only from reputable mortgage brokers and mortgage lenders, and consider only those mortgage quotes that cater to your requirements and offer flexibility.
Topics: Castle Point Mortgage | Comments Off