Banking & Money

The Dos And Don'ts Of Online Banking

2006-11-26T09:26:00.001-08:00

One of the biggest additions to the banking world in recent memory has been the advent of online banking. It has made banking so much more convenient for consumers. Likewise, it has also helped banks in lowering their costs considerably. With that said though, there are some dos and dont's that you need to be aware of when opening up an online bank account.

Do's

Is the online bank you're considering doing business with FDIC insured? This is important, because if they are not, move on to a bank that is. FDIC insures that all savings accounts, checking accounts, and CD deposits are covered up to $100,000.

Be certain that the Internet banks website that you're on is the real website. As hard as it can be to imagine, online criminals have made up websites that nearly identical to the banks actual website in hopes of conning you into getting your personal information.

Always look over all your bank statements, credit card statements, etc., and check to make sure everything looks right. If you do find something that is questionable, talk to your bank immediately.

Make sure you keep your password and account login information in a safe and secure place. Never share this information with anyone, especially through an email. When you come up with passwords, never use birthdates or social security numbers.

Do keep your anti-virus protection software up to date on your computer. It's also a good idea to back-up your files on a regular basis. You really don't want to take chances in this area.

Always completely log off your online banking website. Don't simply "X" out of it.

Change any of the auto-generated passwords you are given when you first open up an online bank account.

Keep up to date on all the information about your online banks security measures. Ask what kind of protection they offer? Compare it to other Internet banks security systems.

Don'ts

Don't send personal information to anyone in an email. You may think it is secure, but it is not.

Don't give out your personal information over the telephone unless you are absolutely certain of who you are dealing with. You also need to know what this person is going to do with your information when you give it to them.

Don't have other browsers open at the same time you are doing your Internet banking transactions.

Don't open emails from folks you don't do business with. If you ever get an email from your bank asking you for personal information, call the bank first before doing anything else. Ask them about the email and find out what is going on. If it is legitimate, which I doubt it is since banks don't conduct business like that, then you can take care of it right there over the phone.

Opening an online bank account is great. I've had an Internet account for years now, and never had any issues with it. It has become such a convenient way of life now that I would never consider anything else. If you will follow these simple dos and don'ts, you'll find the same convenience with online banking as I have.

Discover more information on the Do's And Don'ts Of Online Banking as well as information on banking, loans and investments at http://www.Banking.InfoFromA-Z.com

Article Source: http://EzineArticles.com/?expert=Terry_Edwards

All About Online Banking

2006-11-26T09:24:00.001-08:00

Banking today isn't about standing in line anymore. Instead of waiting in line, go online, and discover the advantages of internet banking. Access your account 24 hours a day, 365 days a year. Do all of your banking from the comfort of your own home. In fact, the advantages are numerous:

Look at your financial statements anytime you want. The online transaction record is updated instantly, so when the bank knows you made the transaction, you know too.
Save precious time and money. Going to the bank often requires booking time off work, driving a considerable distance, and spending hours in line. Doing your banking from home will save you has money, and will help you avoid unneeded stress.
Reschedule your payments. If you need to skip a payment, or pay off your credit card early, a simple click of the mouse and the transaction will be complete.
Send yourself money. If you are in the business or habit of sending money internationally, or even between cities, you could save yourself considerable hassle by transferring your money electronically from the comfort of your chosen internet connection.
Borrow money when you need it. If you have a financial product such as a line of credit, you can borrow money from it over the internet. A simple click and you can place the money in your checking or savings account.

The possibilities of using the internet to conduct financial transactions has greatly increased the flexibility of the modern internet user. Instead of spending your life waiting in line at a bank, go online, and save your time and money.

John Gutenburg is a popular writer of articles and essays on banking and loans.

Article Source: http://EzineArticles.com/?expert=John_Gutenburg

Bringing Financial Services Online

2006-11-26T09:22:00.001-08:00

The variety of financial tools and services available today has multiplied dramatically from a generation ago. On both the personal front and in the business sector there has been a dramatic increase in the number of products available, the methods by which they are delivered and the services they require.

The internet is a perfect system for laying out preliminary information in the financial services industry, where product options can get complicated fairly quickly. Businesses of all sizes that are engaged in some portion of this industry are finding that a website makes good business sense.

An enormous amount of financially related business is still done at the local level. Mortgages, auto and home loans and insurance policies are still usually secured from a local agent. The small businessman engaged in providing such products need only think about the amount of time he or she spends on the phone explaining the basics of their services to realize how much time a website could save them.

When a customer calls about auto insurance, think about the ability to refer the caller to your website to learn about the required minimum coverage, about the relationship of the vehicle's value, about the relationship of personal injury coverage to health insurance.

Think about having a website that explains the four or five home mortgage options that are available, about how they are affected by down payment, credit history and loan amount. Consider the enormous number of variables available in health insurance for both individuals and families, and envision a chart on your own website that explains how those policies work.

That's only a start on the types of benefits a website can provide to a small businessman or regional company in the financial services business. Your website can provide explanations, charts, even video clips explaining:

Retirement planning
Medicare insurance options
Home loans, including specialties such as tenants-in kind
Real estate history and trends in your area
Auto insurance, including the effects of driving records and assigned risk
Investments - mutual funds or annuities? Stocks or CDs?
Estate planning
Health insurance - a new policy, or COBRA?

These are a few examples plucked from a vast array of financial services that are out there today. Your website can become your reference library, your consulting tool, and your business partner when it comes to educating your clients. Websites provide multidimensional explanations of material in a far more effective fashion than brochures. No matter how glossy, stacks of paper that use terms only half understood are intimidating to people.

Your website can have an entire dictionary section, so that potential customers can learn terminology at their leisure, rather than ask embarrassing questions. And of course, the fewer questions they have when they pay a call on you, the less time is consumed in moving towards a potential sale.

Use the graphics capability of a website to maximize the attractive nature of your particular company. Take advantage of a personalized business website to explain why your services are better, unique, priced more reasonably, performed more thoroughly. With any complex financial product, you'll need to explain how your selection of products can meet an entire range of consumer needs. Your website can do that for you.

Financial products can be presented online just as attractively as real estate is today. For every financial product, there is a personal benefit that can be reinforced with images. For products with multiple options and complex purchasing decisions, a website provides a consumer with an invaluable tool that is available 24/7. Your potential customer won't be sitting across from you, concerned that there's been a question missed or an issue not fully understood. A website is like an office staff to a financial services professional: there's no better business for harnessing the efficiency of the new technology.

Madison Lockwood is a customer relations associate for ApolloHosting.com. She brings years of experience as a small business consultant to helping prospective clients understand the ways in which a website may benefit them both personally and professionally. Apollo Hosting provides website hosting, ecommerce hosting, vps hosting, and web design services to a wide range of customers. Established in 1999, Apollo prides itself on the highest levels of customer support.

Article Source: http://EzineArticles.com/?expert=Madison_Lockwood

What You Need to Know about a Home Mortgage Loan by Michael Contaro

2006-11-20T11:19:00.000-08:00

For instance, you are quite tired of renting apartment units. It is been a long time since you have been renting (probably when you have started your first work several years ago) and you estimated that you have already spent an amount sufficient to purchase a modest and permanent home. At this point in time, you realized that it is now the moment to shop for a home that you want to stay in. However, you are hindered by lack of financial funds that you can use on financing the purchase of your new home. There is no chance that a real estate agent will provide you the necessary documentations saying that you are now the new owner if you do not have enough funds.

Will you still go back to being a tenant until you retire from your present work?

What if there is an alternative that you can resort to in this case? Are you willing to give it a try or you will just turn your back on this opportunity of owning a new home without the need of paying the full value immediately?

Yes, there is still a way! And it is through securing a home mortgage loan.

Home mortgage loans are popular financing schemes in purchasing a new home. Arranging mortgage loans are seen as the standard method of buying residential properties without the need of paying the full value immediately. Under typical home mortgage loans conditions, your mortgage lender will pay the owner or developer of the home of your choice, and you will make monthly repayments of the amount your lender spent on purchasing the home from the owner or developer. The term of the mortgage loan is dependent on what you will agree with the lender.

The interest rates applicable on a home mortgage loan may vary according to the loan term and the principal amount. There are two types of interest rates applied on home mortgage loans. These are the following:

1) Fixed rate mortgage (FRM) as the name suggests, the interest rate is fixed, hence the monthly repayment for the term of the home mortgage loan. In the United States, the home mortgage loan term where the FRM is applicable is typically for 10, 15, 20, or 30 years. The only increase that you can expect in your monthly repayments is the result of increase on property taxes and insurance rates. But the interest rate and the basic monthly repayment amounts will be consistent throughout the term of the home mortgage loan.

2) Adjustable rate mortgage (ARM) the interest period is initially fixed for a certain period of time. After which, it will now be subjected on changes (either adjust up or down) based on various market indexes. In the United States, the most common indices used in determining ARM are the Prime Rate and Treasure Index. Home mortgage loans having this type of interest rate transfers the risk from the mortgage lender to the borrower.

The mortgage lender determines whether an applicant is eligible for the home mortgage loan he selected based on different factors, but the most popular is the applicant's credit scores. The higher your credit score, the more creditworthy you are to your lender, which could lead to cost-efficient home mortgage loans.

With home mortgage loans, you will be able to realize your ultimate dream of becoming a new homeowner and not just a tenant forever.

About the Author

Michael Contaro web site is http://RealEstateResourceHQ.com . Click on Home Mortgage Loans to read more.

How To Compare Home Loans by Gary Gresham

2006-11-20T11:18:00.001-08:00

When you decide to compare home loans, it can often be a confusing process. With numerous places to get a mortgage, how do you even know where to start?

To compare home loans, most everyone searches for the best mortgage interest rate. Every day mortgage companies get calls from people asking what the mortgage interest rate is. The problem is, that is not a very good way to compare home loans.

Not only do rates change frequently, unless you are locked into an interest rate, it means nothing. Even though your interest rate is important, that is only one part of the package.

Several loan officers will gladly give you quotes over the phone but they really are not doing you any favors if they do. What you really need to know is, are you getting the right kind of mortgage for your particular situation?

Here are a few considerations beyond getting the best mortgage interest rate when you are ready to compare home loans.

How long are you going to live in your home? Long term loans, like 30 year fixed loans, have interest rates that won't change for thirty years. A lot can happen in that time so the lender has a high risk and these loans usually have a higher mortgage interest rate because you are buying long term security.

But what if you are the type that moves every five years? Now, the lender only has to guarantee the interest rate for five years so the risk is lower and generally the interest rate is too.

With the average person changing homes every five to seven years, paying for this long term security may be a waste of money. Generally, if you believe that you will be in the home for more than 7 years, then a 30 year home loan makes sense. But any less and you should consider a short term fixed loan with lower monthly payments.

If you want to compare home loans from different lenders, ask them for a good faith estimate form that lists all mortgage closing costs. Whether you are getting purchase loans or refinancing mortgage loans, a good faith estimate form is produced for both.

The good faith estimate form lists all of the estimated mortgage closing costs and the form shows what the lender fees and escrow fees from each lender are. One lender may be offering you the best mortgage interest rate, but if his lender fees are much higher than the other lender, is it really a better deal for you?

You'll be able to quickly figure out which is a better deal once you look at both good faith estimate forms. If a lender won't give you this form, consider it a red flag because they are obviously trying to hide something.

Also, make sure you understand how your loan works. With the new hybrid ARM's coming out, even loan officers can become confused and offer you the wrong information. There should never be surprises in a mortgage loan because surprises usually cost you a lot more money that you expected.

Ask a lot of questions if you are unsure of anything and get solid answers from your mortgage broker or loan officer before you sign your paperwork. Remember, you are responsible for the loan once you sign the paperwork no matter what you were told.

These are just a couple of more things to consider other than just getting the best mortgage interest rate when you are ready to compare home loans. Someone that is offering you the right home loan should determine how it fits into your particular situation.

It's always good to know all of your options so you can compare home loans the right way and end up with the best possible mortgage loan for you.

About the Author

This article supplied by http://www.credit-repair-facts.com where you will find access to credit information and more credit articles at http://www.credit-repair-facts.com/articles_1.html

What You Must Know Before Hiring A Credit Repair Company by Nikola Govorko

2006-11-13T07:30:00.001-08:00

When you find yourself in deep credit trouble the last thing you need is to be riped off. That is why you must be careful which credit repair agancy you are going to sign up with.

Since all of us have some kind of debt, whether it be credit cards, mortgage or a car loan all of us have credit history. All the loans that you have taken in your life have been reported to the one of the three major credit bureaus.

If you are like most off the people you will not care much for that until you get your first rejection notice. At first most off us blame someone in the bank or in the credit bureau for this rejection. But after the second, third and the following rejection notices have been received you start to question what is wrong.

After some time you start thinking about your credit score, usually because a friend or a family member have told you about their own credit problems. By then the chance is that your credit has dropped soo much, you will have a very hard time getting a loan with good rates. Forget about buying a new home, car or even renting an apartment.

When you get stuck in this kind of financial trouble you need to start with bad credit repair. At first you might get overwhelmed by the complex terms used by credit repair experts. You will also find many, many ads offering quick, even over night credit fix.

Do not buy in to that!

Credit repair takes time even for reputable companies. One of the reasons why you must be careful is that most of these new companies will not do anything for you that you can not do by yourself with a little help. They will try to convince you that what they do is something beyond your understanding, but in 90% of the cases you can do everything they do and do it better.

What will they do?

1. They will request a credit report from either Equifax or one of the other two major credit reporting agencies.

2. Then they are going to try and challenge any negative items on your credit report.

All that you can do by yourself. Basic idea behind this strategy is not to correct any possible mistakes on your credit report but to use the law which states that all the demands for investigation must be answered to in 30 days.

Since there is just no possible way for credit bureaus to investigate all of the demands, many items must be removed from credit reports no matter if they are correct or not.

This strategy can look really clever at first, but the credit bureau have every right to return the negative items back in your credit report once they investigate it.

So you have two choices here, with first you can hire a credit repair company to do all the work for you and the second is to do all the work yourself. If you do decide to hire a credit repair company, be sure to hire a reputable company, you can find a list of good credit repair companies on our site.

In the recent years there has been a flood of new sprung companies trying to make a buck by ripping people off with bad credit repair service.

Three things you must know and do:

1. You are under no obligation to pay for anything in advance. All the services promised by a credit repair companies must be rendered before you have to pay them. 2. They have to specify in advance all of the services they will provide you with.

3. Carefully read the complete contract. Do not skip anything. If you need to take it home and read it over several times, do it. Read it until you understand every single item in the contract.

Credit repair companies are excellent way towards repairing your credit, just make sure to hire a company that has been in the business for a long time and has many satisfied costumers to verify their record.

Hiring a good service will definitely shorten the time in which you will improve your credit rating and is defiantly going to save you a lot of time and patience you will need if you decide to go through it alone.

About the Author

At www.Debt-Free-Family.com we are dedicated to help regular people get out of debt, avoid bankruptcy and enjoy a debt free life. Find out how to start your own Bad Credit Repair.

How to make money as a mortgage broker - mortgage online training by Benjamin Ehinger

2006-11-13T07:27:00.000-08:00

How to make money as a mortgage broker - mortgage online training

Mortgage brokering is becoming extremely popular and is a very lucrative field today. How does one become a mortgage broker? Is there s a way to get the necessary mortgage online training?

Becoming a mortgage broker does take a little bit of time and money. There are state and federal regulations and licenses that will have to be obtained. Your local Small Business Administration can give you the information for the licensing and all the regulations you will need to know.

It is also important that you become well versed in the financial field and language. You will need to know a lot about the different programs that the lenders you plan to represent offer and you will need to have a general knowledge of the mortgage field as well.

Most of the lenders will have representatives that have a lot of good experience and can explain all of their programs to you. They usually have tips on the best way to sell the programs and who fits into each program.

To get some great general knowledge about the mortgage field you could take a few classes. Usually the Real Estate board offers classes on mortgages every month or so. You will have to contact your local board to find this information out. The chamber of commerce will have their contact information.

Now you have a general idea of what you need in order to become a mortgage broker. You can also get training from an online training program to gain the knowledge necessary to be well versed in the financial field.

About the Author

Get the online training you need to become a mortgage broker with mortgage online training. Go to the following website for more information.

http://www.ready-repair-my-credit.com/loanmortgage.htm

Bank Of America Credit Cards: A Look At The Top 3 by Ed Vegliante

2006-11-09T14:04:00.001-08:00

You probably know Bank of America from its commercials on better banking. They are one of the major players in commercial banking and lending. Well, you know you can enjoy their "Higher Standards" through a variety of products, including mortgages and checking/savings accounts, but did you know they have an uncommonly large pool of credit card options? "B of A" is one of the countries top credit card providers, and their Higher Standards certainly extends to this product line as well. This article takes a quick peek at the Bank of America Platinum Visa, the Bank of America Visa Signature with WorldPoints, and the TripRewards MasterCard by Bank of America.

A Look at the Top Three

The Bank of America Platinum Visa - The B of A Platinum Visa is a solid all around card. Categorized by Bank of America as an "everyday credit card," it is chock full of useful features and reasons to consider it. The Platinum Visa offers a six month interest free introductory period, and accepts initial and subsequent balance transfers with no additional fees. So, if you are on the market for an all around solid card with cheap and easy balance transfer options, this could be the way to go.

The Bank of America Visa Signature with WorldPoints - What on earth are WorldPoints? We're glad you've asked. WorldPoints is one of Bank of America's great incentive programs for cardholders. WorldPoints is a flexible incentive program that lets you apply your purchases to a number of categories: cash back, travel, merchandise, or personal services. In addition to this powerful rewards program, you will receive an introductory 0% APR for the first twelve months of membership. B of A offers a handsome black and silver design that really instills the impression that this is one of their top-of-the-line cards.

TripRewards MasterCard Credit Card - With its uniquely redundant name, the TripRewards MasterCard Credit Card has become a favorite for travelers. The 0% introductory APR on balance transfers is a nice feature (and a theme for B of A), but most users are attracted to its high powered rewards plan. Earn 2 points for every $1 in net retail purchases and earn 13 points for every $1 spent for qualifying TripRewards hotel stays, and that can add up quickly.

All Bank of America cards come with the same great 24 hour customer service, online account management, and fraud protection. Opting into a B of A card gives you all of the benefits and security of one of America's largest financial institutions. So, if you are considering a general use card, check out the Platinum Visa; if you want flexible incentives, make sure to apply for the Visa Signature with World Points; and, of course, if you're out to see the world, the TripRewards MasterCard Credit Card is the way to go.

About the Author

Click here for Bank of America Credit Card Applications. Ed Vegliante runs www.Credit-Card-Surplus.com, a directory helping consumers compare and apply for credit cards.

Enhance Home Value Through Online Home Improvement Loan by Dina Wilson

2006-11-09T14:02:00.000-08:00

After you built a home long time back, it now requires home improvement works on regular basis. You may be in need of adding a story to your home for accommodating more members of the family, your kitchen requires some modernization or you may need to create some space, there are number of works that come under home improvement. So the expenses also are greater and a loan becomes essential. Online home improvement loan providers ensure that you get greater loan amount at lower interest rate and in less time.

Online home improvement loan is provided by online lenders. These lenders have an online loan application form displayed on their websites. You are required to fill basic details like loan amount, purpose of the loan, repayment duration in the online application and with the click of the mouse the application is with the lender for verifying the information. Online lenders can thus approve the loan in less time and the loan is in the applicant's account within days.

Online lenders give you the options of taking a secured or unsecured online home improvement loan. For secured online home improvement loan you are required to place collateral with the lender. Collateral may be any property or your home. On securing home improvement loan, lenders offer the loan at lower interest rate. The repayment duration for the secured loan is larger in the range of 5 to 30 years. The borrowed amount depends on equity in the property placed as collateral. Usually lenders are willing to provide any where from £5000 to £75000 to the borrowers.

For smaller borrowings unsecured home improvement loan is better option. Unsecured home improvement loan is a risk free offer for the borrower as none of his property is at stake. But interest rate is higher and borrowings are restricted to limited amount. Repayment duration also is shorter up to 10 years. For ensuring the repayment capacity, lender may demand proof of annual income and employment.

To bad credit borrowers also online home improvement loan is available easily in case the secured loan is the option. Lenders do not enquire much because in case of payment default, lenders can recover the loan on selling the bad credit borrower's property. If unsecured loan is the option, then bad credit borrowers shall have to assure the lender about safe pay off of the loan.

Make comparison of different online home improvement loan providers for their individual interest rates and terms-conditions. Apply to the suitable lender online for fast approval.

Online home improvement loan is surely a useful source of cheap finance for meeting various expenses. Ensure a timely payment of the installments for avoiding the debts.

About the Author

Dina Wilson is an expert loan advisor at online home improvement loan. She has done MSc Management and Finance from University of Whales.To find Online home improvement loan, home improvement loan, cheap online home improvement loan visit http://www.online-home-improvement-loan.co.uk

Refinance Advisors And There Are Plenty of Them by Nazir Hussain

2006-11-06T05:10:00.000-08:00

The Refinance process is a process involving various options and terms. If a borrower goes to shop around finding the best, it may sometimes be too time-consuming and confusing as what to take and what to leave. This makes the people turn to refinancing experts. They are also called Refinance Advisor and totally handle the process of refinancing. They are known by different names, such as consolidation advisors mortgage professionals, mortgage brokers, loan officers and more.

Refinance Advisors are individual professionals or firms that concentrate on helping the Refinance applicant to secure the best Refinancing loans. Their most important function is to do the paper work needed for refinancing, initiate the refinance applications and process them for submission to lenders. Each Advisor may work for multiple borrowers and lenders. They explain every aspect of the loan such as interest rate charged on loan, how much is to be repaid and in what time duration, the closing costs associated with loans, the pay points if any needed, the amount fee in case there is any delay in repayment, methods to handle late fees etc. They also study the credit situation of the applicant, create a credit report, estimate the credit score, and submit all the documentation to the lender for approval.

In case the application is not passed say due to bad credit, the Advisor may guide the applicant to repair the credit report and how to do that. They generally see the package that is best suited for lender and borrower, as deal should have mutual interest. If you're a corporate employee, school district, government agency, college, etc., you probably have a credit union. They act as refinance advisors and lenders. Credit unions are easier on you than banks, they'll lend you more money at favorable rates, usually 2% better. They work at a fast pace. Your credit union can approve you over the phone in minutes, printing your credit report during the call.

They will tell you what you qualify for. But the online lenders rates usually beat even the credit unions. There are a lot of refinancing options available on the web. They offer variety of packages with different benefits .

Among those are:

1)Online lenders usually offer lower ARP that what would be offered by a dealer.

2)You can avoid headaches, scams and frustration of dealer financing.

3) The results and approvals are usually within an hour during business hours.

4)There are no hidden application fees, points or prepayment penalties. Everything is open and clear in these transactions.

5)You easily get your credit scores and reports online.

But then beware! As you are not in contact of any person there can be and there have been scams. So before refinancing with a lender check for the goodwill of the lender.

The main source of income for a great majority of Refinance Advisors, whether they are individuals or firms, is the business commission they get from each customer. So securing a Refinance loan is as important to them as it is to the borrower. As in other shopping of a new home etc a borrower needs to do some window- shopping so that he or she can get the best deal.

About the Author

Refinance is a key part of business development strategy used by Nazir on a daily basis. Proper use of this financial instrument depends very much on the quality of information upon which any refinancing decisions are based. For your better decisions, visit refinance now at http://www.123refinancenow.com

Jumbo Loans and 50 Year Mortgages by Keith Gill

2006-11-06T05:09:00.000-08:00

When you hear about 'jumbo loans' one automatically thinks about a double mortgage. A jumbo mortgage is a mortgage with a loan amount that is actually beyond the amount of a standard loan limit. Jumbo mortgages actually apply when agency limits do not cover the entire loan. Fannie Mae is an example of a large agency that buys the majority of residential mortgages. These companies set a limit on the dollar value of a mortgage they are willing buy from a particular lending company.

Today's current limit is $417,000 for a mortgage. This actually leaves home owners and those who want to purchase a home a chance to search for placement. The placement is actually investors such as banks. The banks step in with large amounts such as $1 million or $2 million rate.

In life there is always a risk. Jumbo mortgage loans are considered a major risk for lenders. If a jumbo mortgage happens to default, this means that it's more difficult to sell to a higher paying buyer or a luxury resident fast for the full price. Contrary to popular belief, luxury prices such as the $600,000 and up, is vulnerable to the markets lows and highs. This is why mortgage lenders want a large down payment rather than a low down payment or '0' down payments. A person who invests in a jumbo mortgage loan will pay a high interest rate because of the high risk.

Recently, mortgage lenders have come up with a way for potential home buyers to still purchase homes as the interest rates continue to climb. Lenders have developed what is now known as the 50-mortgage. This is keeping the American dream of home ownership alive and well. According to USA Today, a group of small lenders have been offering a 50-year 'adjustable-rate loan'. This ultimately keeps buyers from paying high monthly payments. With the 50-year mortgage, prices are kept very low.

If a person who is 40 years old and they purchased a house with a 30 year mortgage and they do not pay off their loan early they will be age 60 when their home is finally paid for. Now with the 50 year mortgage for a 2006 40 year old, they will be 90 years old when they are officially a 'paid-in-full' home owner.

Although a person who chooses the 50-year mortgage pays lower payments than a buyer with a 30-year mortgage, the borrower builds equity at a very slow pace and may cause the borrower's monthly payments to increase, the report said. Mortgage experts warn that the new 50-year mortgage is recommended for buyers who are planning to stay in their home for approximately five years, as the home loan's interest remains fixed.

About the Author

Keith Gill is an experienced and successful Mortgage Loan Banking professional and Real Estate investor who prides himself on his expert knowledge, advice and thousands of happy repeat clients. Keith Can be reached at going to his site at http://www.YourLenderForLife.com.