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Casual Articles - 18 Ways to Reduce Your Mortgage Loan
Cash flow is the lifeblood of any business. Many businesses fail simply because of their cash flow situation. Nowhere is this more prominent than in an affiliate business. When you are running an affiliate marketing business, it is vital that you maintain a good cash flow.You’ve probably heard the old saying that it takes money to make money. Although I don’t agree with this entirely, it does hold a lot of truth for the affiliate marketer. Most people starting off with their affiliate marketing business have limited funds available. No matter what angle you start from online, you are going to need some money to make money. This is where cash flow comes in. Cash flow in affiliate marketing is what will enable you to keep going. Online, there is a need for speed. Money moves really quickly and learning how to make money with money is the key to success online.One of the secrets of affiliate marketing is to learn how to set up multiple streams of income – and the internet is an ideal medium for this concept. If you can set up a campaign that costs you $100 and it returns $150 in affiliate commission, then that’s a $50 profit. At first this does not sound like much, but when you consider the fact that this campaign can run on autopilot. It can keep bringing you that $50 profit month in and month out with very little maintenance from your end. Multiply this formula by 10 and you have yourself $500 recurring income a month. With the right strategy you can set these campaigns up in an hour or less and maybe spend another hour or so to tweak them. Once its done, it’s done.Once you have a positive cash flow you can start scaling your affiliate marketing campaigns. The principle of cash flow is quite simple – it is the amount of cash that you have available or to which you have immediate access. Robert Kiyosaki said it best when he said that you either work for your money or you let your money work for you. The more money you have working for you, the more you will get in return. The more you have to work for your money, the more tired you will get.The shocking statistic is that 99% of affiliates online fail to make any significant income. When
Using our example from above, by paying monthly, you will end uprepaying $682,632 over the term of your loan. But, by paying fortnightly (bi-weekly), you will save $87,254 in interest and 5.8 years off the loan.
Little or no experience of speaking in public? Does the very thought of presenting fill you with fear? Still suffer anxiety attacks before you present? Would you like to be more in control when delivering a presentation? Read on if you'd like to do something about it today Whether it’s presenting to your manager, a team of colleagues, or pitching for new business the success of any presentation is dependent on structuring a clear message and delivering that message with confidence and conviction.Obviously, confidence is a crucial element but if for you (like many others), the mere thought of having to give a presentation can lead to nerves taking over, what then happens to the clear, well structured message that you were hoping to present?Fear of public speaking takes on many guises Just about every day of the week we have people asking us if we've ever had to deal with their particular problem and if we can help them eliminate their fears of public speaking.The phrases they use to describe this feeling of dread include:-"petrified" ... "very nervous" ... "anxiety attacks" ... "throat dries up" ... "avoid it at all costs" ... "afraid" ... "get panic attacks" ... " shake like a leaf" ... "voice goes" ... "mind goes blank" ... " feel physically sick" ... "totally stressed" ... "feel like an idiot" ..."face goes red" ... "heart is pounding" ... "can hardly breathe" ... "out of body feeling"Do any of these phrases ring true with yourself or others you know?So is there a medical term for this feeling of dread? There may well be a medical term for the most severe of cases, but the first thing you need to know about this is that the feelings described above are actually quite normal. Its simply what happens when there's a rapid increase of adrenaline running around our body - and we sometimes go into what I'd call almost a state of shock.Generally speaking you are experiencing some physical reactions to a fear induced state of mind.Not great for you personally if your next job promotion hangs on you're
Beware of lenders bearing gifts! Introductory or honeymoon rates have long been an important marketing tool for lenders. You are initially offered a cheap rate on your loan to get you in the door but once the honeymoon period is over, the lender will switch you to a higher variable rate of interest. An example of this is an Adjustable Rate Mortgage (ARM).
There are two problems with this scenario. First, the variable rate is often higher than some of the lower basic loans available so you could end up paying more. Second, you need to clearly understand that a honeymoon rate applies only for the first year or two of the loan and is a minor consideration compared to the actual variable rate that will determine your repayments over the next 20 or so years.
You may also be hit with fairly steep exit penalties if you want to refinance in the first two or three years to a cheaper loan. So make sure you fully understand what you are letting yourself in before setting off on a "honeymoon" with your lender.
2. Pay it off quickly
Time is money. There are all sorts of strategies for paying less interest on your loan, but most of them boil down to one thing: Pay your loan off as fast as you can. For example, if take out a loan of $300,000 at 6.5 per cent for 30 years, your repayment will be about be about $1,896. This equates to a total repayment of $682,632 over the term of your loan.
If you pay the loan out over 15 years rather than 30, your monthly payment will be $2,613 a month (ouch!). But the total amount you will repay over the term of the loan will be only $470,397 - saving you a whopping $212,235
· Make repayments at a higher rate
A good way to get ahead of your mortgage commitments is to pay it off as if you have a higher rate of interest. Get a loan at the lowest interest rate you can and add 2 or 3 points to your repayment amount. So if you have a loan at about 6.5 percent and pay it off at 10 per cent, you won't even notice if rates go up. Best of all, you'll be paying off your loan quicker and saving yourself a packet.
· Make more frequent payments
The simple things in life are often the best. One of the simplest and best strategies for reducing the term and cost of your loan (and thus your exposure should interest rates rise) is to make your repayment on a fortnightly (bi-weekly) rather than monthly basis. How can this make a difference I hear you ask? It works like this:
Split your monthly payment in two and pay every fortnight. You'll hardly feel the difference in terms of your disposable income, but it could make thousands of dollars and years difference over the term of your loan. The reason for this is that there are 26 fortnights in a year, but only 12 months. Paying fortnightly (bi-weekly) means that you will be effectively making 13 monthly payments every year. And this can make a big difference.
Using our example from above, by paying monthly, you will end uprepaying $682,632 over the term of your loan. But, by paying fortnightly (bi-weekly), you will save $87,254 in interest and 5.8 years off the loan. Z
Who is best qualified to prove your product works? Who has the credibility and the believability to talk about the benefits of using your product? Who will tell your customers and clients it's a good decision to buy?It's you, right? Perhaps you'd better keep reading...The answer is - your own customers.Your customers have the experience of using your product. They've used the features, and experienced the benefits. Speaking from this familiarity your customers will relate with your prospects in a way you will not.Your words are seen as claims when you talk about your product. But when your customer talks, their words are seen as truth.When you're selling a product or service, all internet marketers know there is nothing like the power of testimonials. Testimonials are the social proof - the "Show me I'm not alone" evidence - from customers that have already bought from you and enjoyed your product.I've seen sales letters written by top marketers that are composed of nothing but testimonials. We've all seen sales letters filled with so many testimonials that if printed out, it would drain your printer of it's ink.The testimonials in such letters contain nearly all of the elements a good sales letter must have: the features and the benefits (especially the benefits!) of the product; the stories supporting the use of the product; and novel ideas on how your product has been put to use. (Wow, it's like an 'open source' method for sales-letter development!) Just add an attention-grabbing headline (and a link to the order page) and you're done.So how do you get authentic, sales-pulling, kick-butt testimonials that practically write your sales letter for you? Well, how about asking for them? The way that you ask, though, is the difference between asking and getting little, and asking and getting a tremendous response.
You may also be hit with fairly steep exit penalties if you want to refinance in the first two or three years to a cheaper loan. So make sure you fully understand what you are letting yourself in before setting off on a "honeymoon" with your lender.
2. Pay it off quickly
Time is money. There are all sorts of strategies for paying less interest on your loan, but most of them boil down to one thing: Pay your loan off as fast as you can. For example, if take out a loan of $300,000 at 6.5 per cent for 30 years, your repayment will be about be about $1,896. This equates to a total repayment of $682,632 over the term of your loan.
If you pay the loan out over 15 years rather than 30, your monthly payment will be $2,613 a month (ouch!). But the total amount you will repay over the term of the loan will be only $470,397 - saving you a whopping $212,235
· Make repayments at a higher rate
A good way to get ahead of your mortgage commitments is to pay it off as if you have a higher rate of interest. Get a loan at the lowest interest rate you can and add 2 or 3 points to your repayment amount. So if you have a loan at about 6.5 percent and pay it off at 10 per cent, you won't even notice if rates go up. Best of all, you'll be paying off your loan quicker and saving yourself a packet.
· Make more frequent payments
The simple things in life are often the best. One of the simplest and best strategies for reducing the term and cost of your loan (and thus your exposure should interest rates rise) is to make your repayment on a fortnightly (bi-weekly) rather than monthly basis. How can this make a difference I hear you ask? It works like this:
Split your monthly payment in two and pay every fortnight. You'll hardly feel the difference in terms of your disposable income, but it could make thousands of dollars and years difference over the term of your loan. The reason for this is that there are 26 fortnights in a year, but only 12 months. Paying fortnightly (bi-weekly) means that you will be effectively making 13 monthly payments every year. And this can make a big difference.
Using our example from above, by paying monthly, you will end uprepaying $682,632 over the term of your loan. But, by paying fortnightly (bi-weekly), you will save $87,254 in interest and 5.8 years off the loan.
Recently I was reading a book called The Millionaire Mind. The book offers an intriguing look into the minds of those that have attained over one million dollars in net worth (there's far more to it then this, but I won't get that in depth for the purposes of this commentary)...What's interesting is that while the people surveyed all tended to come from varying backgrounds, many of them implemented similar philosophies with regards to creating monetary successes in their lives.I found the following particularly interesting in illustrating the point that these people do not tend to leave things to chance. Rather they chose to formulate their own particular plan in order to achieve what they wanted to manifest in their lives.Another interesting thing is that the book states that the higher a person's net worth was on the list, the less likely that person was to ever play the lottery. Now please don't misunderstand me here, I am not picking on anyone that plays the lottery.I am simply making a point that the people featured in the book tended to be those who took the time to develop a more selective plan for where they wanted to end up with regards to their monetary goals -- rather than simply leaving it to chance. And that my friend is something worth thinking about.-- To Your Success, Josh Hinds
If you pay the loan out over 15 years rather than 30, your monthly payment will be $2,613 a month (ouch!). But the total amount you will repay over the term of the loan will be only $470,397 - saving you a whopping $212,235
· Make repayments at a higher rate
A good way to get ahead of your mortgage commitments is to pay it off as if you have a higher rate of interest. Get a loan at the lowest interest rate you can and add 2 or 3 points to your repayment amount. So if you have a loan at about 6.5 percent and pay it off at 10 per cent, you won't even notice if rates go up. Best of all, you'll be paying off your loan quicker and saving yourself a packet.
· Make more frequent payments
The simple things in life are often the best. One of the simplest and best strategies for reducing the term and cost of your loan (and thus your exposure should interest rates rise) is to make your repayment on a fortnightly (bi-weekly) rather than monthly basis. How can this make a difference I hear you ask? It works like this:
Split your monthly payment in two and pay every fortnight. You'll hardly feel the difference in terms of your disposable income, but it could make thousands of dollars and years difference over the term of your loan. The reason for this is that there are 26 fortnights in a year, but only 12 months. Paying fortnightly (bi-weekly) means that you will be effectively making 13 monthly payments every year. And this can make a big difference.
Using our example from above, by paying monthly, you will end uprepaying $682,632 over the term of your loan. But, by paying fortnightly (bi-weekly), you will save $87,254 in interest and 5.8 years off the loan.
Cold calling is an effective method of introducing yourself to potential hiring managers to enquire about employment with their company. In my earlier article called “Cold Calling: How To Cold Call Your Way to A New Job When A Hiring Manager Answers The Phone” we talked about how to cold call hiring managers and what to say when they answer the phone.However, what should you do if the hiring manager doesn’t answer the phone and you reach their voice mailbox?Typically, if you call 10 hiring managers, you might be lucky if you manage to get 3 or 4 of them live on the phone. In other words, you might end up reaching the hiring manager’s voice mailbox more often than not.Personally, I think if you have made it this far on the call, you might as well leave a message rather than hanging up and calling the hiring manager over and over again until you get them on the phone live.The best way to leave a voice message for a hiring manager is to script a short, relevant marketing message about you that lasts less than 60 seconds in length and use this as your voice message.I feel better about scripting a voice message than a live call because with a voice message, there is no chance that someone will butt in and interrupt you. With a live call, who knows what the person on the other end of the phone will say? Your script could go right out the window if they say something you don’t expect!Your goal should be to become so comfortable with this voice message script, that you will quickly be able to recite it by heart and make it sound natural and unscripted.Here is the model I use to put together a marketing message when I am cold calling an employer regarding a specific candidate and need to leave a voice message. In this case, I have identified a job searcher who I believe is someone that this company needs so I am contacting the company to try to arrange an interview between the candidate and the hiring manager: “Hi, this is Carl Mueller. I’m representing a Certified Database Administrator with 5 years of hands-on experience. She has excelled in both small and medium-sized environments and her former manager spoke
· Make more frequent payments
The simple things in life are often the best. One of the simplest and best strategies for reducing the term and cost of your loan (and thus your exposure should interest rates rise) is to make your repayment on a fortnightly (bi-weekly) rather than monthly basis. How can this make a difference I hear you ask? It works like this:
Split your monthly payment in two and pay every fortnight. You'll hardly feel the difference in terms of your disposable income, but it could make thousands of dollars and years difference over the term of your loan. The reason for this is that there are 26 fortnights in a year, but only 12 months. Paying fortnightly (bi-weekly) means that you will be effectively making 13 monthly payments every year. And this can make a big difference.
Using our example from above, by paying monthly, you will end uprepaying $682,632 over the term of your loan. But, by paying fortnightly (bi-weekly), you will save $87,254 in interest and 5.8 years off the loan.
By 1998, new laws came available, which makes up the Homeowner Protection Act. This Act made it clear that all homeowners must have at most the PMI plans. These laws failed to cover the Veteran loans; instead, FHA (Federal Housing Administration) covered these loans.If you recently took out a mortgage that allowed you to pay 20% down on the loan, most mortgage lenders expect that you take out a PMI coverage package. The PMI plans are the Private Mortgage Insurance that gives the lender a security blanket or pocket by comprising coverage for him (the lender) in the event you fail to repay the mortgage.When you buy a home, you must take out at most PMI, which is the minimal coverage for your home. Your mortgage lender may offer you a plan, yet you may have options to find your own home insurance.If you are searching for home insurance, you may want to get quotes online. The quote system allows you to compare costs on premiums, deductibles, interest rates, annual rates and so on.You can talk to your lender about insurance. Your lender will incorporate the insurance payments into your monthly installment. Again, you may have options. If you choose to find your own, policy asks your lender if you have the option to look for your own insurance plans.At what time you start searching for insurance, look for policies that will cover natural disasters, vandalism, theft, petty crimes, fire, and so on. Rather than finding loans to give your lender security only, look for coverage that will protect your interest also.Insurance coverage for fire/theft, natural disaster, etc is important. If someone breaks into your home and robs you, stealing your belongings you want coverage that will return loss or damage. Likewise, if your home burns down you want insurance that will cover your loss.With these types of insurance deals the premiums, interest rates, and other aspects of the policy will change. For instance, if you are a high risk or live in a high-risk area you may pay higher rates of interest as well as premiums on your plan. Alternately, you can use online quote system to find the best rates on the market.Some of the
Using our example from above, by paying monthly, you will end uprepaying $682,632 over the term of your loan. But, by paying fortnightly (bi-weekly), you will save $87,254 in interest and 5.8 years off the loan. Zero pain to you, major benefit to your pocket.
· Hit the principal early
Over the first few years of your mortgage, it may seem that you are only paying interest and the principal isn't reducing at all. Unfortunately, you're probably right, as this is one of the unfortunate effects of compound interest. So you need to try everything you can to get some of the principal repaid early and you'll notice the difference.
Every dollar you put into your mortgage above your repayment amount attacks the capital, which means down the track you'll be paying interest on a smaller amount. Extra lump sums or regular additional repayments will help you cut many years off the term of your loan.
· Forego those minor luxuries
This is the bit you don't want to read. Once you have a mortgage, your life is likely to be luxury-free (or at least pretty close to it). Think of all the weight you will lose by giving up your favourite indulgent snack. For the sake of your health you should quit smoking and drink less anyway. Take your lunch from home and save on bad fast food. Trust me, your body will thank you for it.
If you're still not convinced consider the following example. A typical day may include a pack of cigarettes ($10), a coffee and donut ($5), lunch ($12) and a couple of beers after work ($8). That's $35 a day or $175 a week or $750 a month or $9,100 a year.
Assuming a mortgage of $300,000 at 6.5 per cent over 30 years, by making $750 in extra repayments each month, you'd save more than $216,000 in interest and be mortgage free in just over 14.5 years.
No one is saying you should live a convict existence but just cutting down a little on your expenses will see you reap huge financial benefits.
3. Get a package
Speak to your lender about the financial packages they have on offer. Common inclusions are discounted home insurance, fee-free credit cards, a free consultation with a financial adviser or even a fee-free transaction account. While these things may seem small beer compared to what you are paying on your home loan, every little bit counts and so you can use the little savings on other financial services to turn them into big savings on your home loan.
There are also "professional" packages on offer for amounts over a certain limit, which can be as little as $150,000. Some lenders offer discounts to specific professional groups or members of professional organizations. Ask your lender if your occupation qualifies you for any discount. You might be
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