1)I am planning to buy a new home for the first time . What expenses(payment) would be added to my home mortgage like home insurance, mortgage insurance etc?
2)How can I lower my monthly mortgage? Some of my friends told that I have to pay at least 20% down payment rather than paying those amount after one year or so to lower monthly mortgage .
Thanking in advance.

Are you looking for reliable property guys who can help you repair and maintain your rental property? Then learn all about the different types of repairmen and find out which one is right for you.

What are the Things that a Repairman can Help You with?

As time passes, it’s only natural that your rental property will need the occasional repair and maintenance to keep it in shape. It’s also important that your rental property will still meet the health and safety standards set by your local housing agency.

The good news for landlords is that any repair bills that you fork out to keep your rental property in habitable condition will be tax deductible.

You can also turn to property guys for major home improvements and renovations. This will boost the selling value of your property and allow you to demand higher rent payments from potential tenants.

Finally you can also hire a licensed contractor to carry out a thorough property inspection to check for any property damages and give you an estimate of the repair costs.

How Should You Handle Minor Repair Jobs?

For minor repairs such as replacing a faulty bulb or repainting a room, you can always choose to do it yourself. This is an effective way to save money and cut down on your rental expenses.

If you don’t feel like getting your hands dirty, you can always hire a handyman instead. Property guys you can hire for real estate repairs are generally divided into 2 major groups: <b>handymen and licensed contractors.</b>

Handymen are usually not licensed and may just be someone who happens to be good with his hands working part time for extra income. On the other hand, licensed contractors usually have to go through formal training and run a full time business.

Your average handyman is usually skilled enough for simple repairs and the important thing is that they will charge you less for their services.

However if you require major repairs or a complete revamp of your rental property, then it’s highly recommended that you look for a reliable licensed contractor to do it for you.

In fact for some critical repairs such the electrical rewiring of your rental home or installing a new air-con compressor, you will need a permit for it. This means that only a licensed contractor is allowed by law to do it.

How to Make Sure that Your Repairman will do a Good Job

Before you hire someone to repair and maintain your rental property, ask around for recommendations. You can look for other property owners or call your local landlord association to find who are the repairmen that they have worked with and will gladly hire again.

If you are hiring a licensed contractor, his work record should be publicly available at your local housing agency. When looking through his records, it’s important to watch out for any recent complaints and work violations.

Once your find your ideal repairman, always make sure you discuss all the important details with him first. This includes when the time period for the repair work, what are the exact repair jobs that will be carried and all related costs.

It’s also a good idea to watch over your property guys when they are doing the actual repairs. However make sure you don’t harass them and speak out only when you notice something out of place.

Teo Zhenjie has been showing landlords how to manage their tenants and rental properties effectively on Propertydo http://www.propertydo.com/ – To learn more important tips on property guys, visit his website today for step-by-step real estate guides, free resources and forms.

Does the person pay the mortgage balance to the bankruptcy court? Does the person have to find another lending company to take up the mortgage balance?

Are you undecided about using the services of a mortgage broker or sceptical as to what a mortgage broker can do for you? The purpose of this article is to clarify the many advantages and benefits you will receive when using the services provided by mortgage brokers in Canada.  I am optimistic that after reading this article Canadians will have a much better understanding about the services provided by a mortgage broker, and will consider using a mortgage broker for their mortgage financing needs.
 

What exactly is a mortgage broker?
 

Basically, a mortgage broker is a representative for all of the Canadian lending institutions in Canada. Their function is very similar to that of an insurance broker. A bank representative that works in one particular lending institution is employed by that bank and is aware of every mortgage product that their bank offers. Therefore, when you go into your bank for a mortgage the representative analyzes your situation and chooses the best product their bank offers for your needs. Mortgage brokers act as agents for all Canadian banks, Credit Unions, Trust Companies, finance companies and individual private lenders. Subsequently, when you visit a mortgage broker for mortgage financing they analyze your specific situation and choose the best product from one of the 50 Canadian lending institutions at their disposal.

In Ontario, mortgage brokers are educated professionals who are licensed and regulated by the Financial Services Commission of Ontario (FSCO).  FSCO is merely one of the government agencies that monitors the business practices of mortgage brokers, each province has an agency that provides the same service to Canadians.  As a result, these agencies certify that Canadians are being given reliable protection, a thorough comprehension of mortgage products, and a standard of service to meet their individual needs.

So, how exactly will you benefit by using a mortgage broker?

Save time: Many people try to shop around their own mortgage by traveling to the 5-6 major Canadian retail banks, which can be very time-consuming.  A mortgage broker will meet you where it’s convenient for you and they will shop your mortgage for you saving you a lot of valuable time.
 

Credit Score: One of the most important considerations for Canadians when shopping around at different banks is their credit score. Each time you go to a bank and apply for a mortgage, they will make a credit inquiry, too many inquiries will negatively affect your credit score. A mortgage broker only requests one credit inquiry and then forwards that to the banks they are shopping.

Save Money: Many people are under the false assumption that it is expensive to use a mortgage broker. In fact, most brokers do not charge any fees because they are paid by the banking institutions for bringing them in business. That’s the best part, you receive unbiased advice about your mortgage and it doesn’t cost you any money.

Best Rates: Using a mortgage broker guarantees you that you will get the best rates available, independent mortgage agents rely on repeat business so they do not play games, they always find their clients the best rates possible. Additionally, as a reward for bringing them millions of dollars per year in business, many banks will offer special rates only available to mortgage brokers for their clients.

Fast Approvals:  Usually, a mortgage broker will have your mortgage approved within 24 hours, at the very best interest rates. Even if the retail banks do approve a person’s mortgage fast, it can sometimes take weeks to negotiate them down to their best rate.

Feel At Ease:  A mortgage agent will take the time to explain the entire process to the mortgagee, this is especially comforting for first time homebuyers. They will take the time to explain all of the terms and conditions of a mortgage commitment so there are no surprises later. They will usually present more than one option for clients, and be able to explain the differences between each bank, this will help consumers make educated choices about which banks they would rather use.

Where will your next mortgage financing experience be?

Today, it is no longer necessary for Canadians to place their trust blindly in their bank for their mortgages.  There is now a vast amount of information available to consumers, with all of the available information it is advantageous for consumers to use the services of a Canadian mortgage broker to help them analyze which products will best suit their needs. Canadians should realize that by using a mortgage broker they are not choosing between a broker and their bank. A mortgage broker can place your mortgage with your bank if that’s what you ultimately decide. What you should ask yourself though is if you are a client at TD Bank do think the bank representative will tell you if Scotia bank has a better interest rate? Your mortgage broker will.

Knowing your rental property law is the most effective way of managing your tenants smoothly and staying out of trouble. Learn more about the important and common landlord tenant laws today.

When You are Screening and Choosing Your New Tenants

As a landlord you are allowed to screen anyone who is applying to be your tenant and choose people that you think will be able to pay their rent on time and follow the rules of your rental agreement.

However rental property law prohibits you from discriminating someone as your tenant due to their nationality, race, gender, religion or physical disability. When you reject someone as your tenant, be sure to give them a valid reason and not lie to them that your property is already rented out – That’s how landlords commonly land themselves in hot soup.

When You are Setting Your Rent and Late Fees

If your tenants belong to a subsidized housing program or regulated tenancy, you may not be allowed to set your own rent according to the market rates. Instead your local housing authorities will decide the rent rates for your rental property.

You are generally allowed to set your own late rent fees if your tenants don’t pay up their rents on time. However in most areas the rental property law disallows the landlord from imposing late fees that are too high. Generally any late fees that are over 30% of your monthly rent will be considered too steep.

When You are Handling Your Tenant’s Security Deposit

There are usually strict rental property law and rules regarding how you can collect and use your tenant’s security deposit. In most countries the landlord is allowed to collect security deposits equal or less than 2 month’s rent.

Valid and common reasons for deducting money from your tenant’s security deposit include overdue rent, unpaid property expenses and property damages caused by your tenant. Whenever you take money from his security deposit, you will have to give your tenant a written list stating the reason and amount for every deduction.

When You Want to Evict Tenants from Your Rental Property

You may have horrible tenants but your landlord tenant law will prohibit you from simply chasing away them away with a broom. Firstly you will have to give your tenant a written notice to quit. The tenant will have a last chance to clean up his mess within a time limit before the landlord can kick start an eviction lawsuit.

To formally begin your eviction lawsuit, you will have to go to your local authorities to obtain an unlawful detainer’s order. This will fix up a date for your court hearing and your tenant will be summoned to appear for it. If all goes well and you win the eviction lawsuit, your tenant will have to leave your rental property within 3 to 7 days.

If you are a residential landlord, it’s important to know that your local rental property law does not grant you the right of self help. This means that you cannot change the locks by yourself or cut off the electricity and water supply to chase away bad tenants. You will have to wait for the local authorities to do that for you.

Teo Zhenjie has been showing landlords how to manage their tenants and rental properties effectively on Propertydo http://www.propertydo.com/ – To learn more important tips on rental property law, visit his website today for step-by-step real estate guides, free resources and forms.

For instance:
Is it $1500 rental income – $1000 rental mortgage = $500 added to your income only

or

Is $1500 of rental income added to your total income and $1000 added to your total debt and they are considered separate of each other in the ratio?

I’m about to sell a rental property on which I collect $1,200 per month (minus upkeep) because I’m moving out of state. I don’t want to buy another rental property but have become dependent on that income. I should receive $185,000 for the property. What is the best income producing investment I can make?

I am applying for a mortgage and pay my rent on the 7th each month. I am not charged a late fee by complex. I have read that mortgage companies only consider rent late if it is more than 30 days. Is that true?

With so many different types of mortgage available, it’s difficult to determine the right one for you. Before you start looking at available mortgages, however, it’s important to first evaluate your finances, as your financial situation is an important factor that will dictate the type of loan you need, and how much you can afford to borrow.

Step One: Evaluating Your Finances

Before you even think about the type of mortgage you should obtain, it’s important to evaluate your financial situation. Check your credit rating and FICO score, evaluate your income and debt level, figure out the size of the down payment you can afford, and determine how much mortgage you can afford and what your credit rating will allow you access to.

When it comes to your credit rating, know that between 620 and 699, you’ll probably pay a higher interest rate than if your credit rating is over 700, due to a slightly higher perceived risk on the part of lenders. If your credit rating is below 620, you may find it’s better to wait and improve your credit rating rather than be forced into a sub-prime mortgage with a high interest rate.

Step Two: Choosing the Best Mortgage

Once you have completed an evaluation of your financial situation, you’re ready to start thinking about the kind of mortgage you want. The mortgage that best suits you will depend on a long list of factors, not all of which are related to the amount of money you have for a mortgage. Think not only about how much mortgage you can afford, but also your credit rating, how long you plan to stay in the home, and whether you think your plans or financial situation might change in the future.

So what are your main mortgage options?

Fixed rate mortgage

Normally a 10, 15, or 30-year mortgage, you pay the same interest rate over the life of the loan.

Good for: If you like the security of paying the same amount every month and you’re planning on owning the home long-term, this is definitely the best option. There are some variations on this theme, including jumbo mortgages, which are larger-than-standard loans with a slightly higher interest rate.

Adjustable rate mortgage

These are mortgages with adjustable interest rates, which come in several different varieties. When you first get an adjustable rate mortgage the interest rate is lower than that you’d get with a fixed rate mortgage. However, at intervals, the interest rate can increase or decrease according to current market rates. This means your monthly repayments aren’t fixed, so these types of mortgages are more risky in comparison to fixed rate mortgages.

Good for: If you want a mortgage with an initial low rate and you’re prepared to take a risk on later rates (or you only plan to own the home for a few years), this may be a good prospect.

Interest-only mortgage

The standard type of mortgage is amortized, meaning your monthly repayments include both principal and interest. An interest-only mortgage is just what its name suggests – your monthly repayments don’t have to include principal (but you can pay off principal amounts at any time). This means you are not building up equity in your home while you’re only paying interest, but there are no pre-payment penalties.

Good for: This type of loan can work well if your income is at a consistent level overall but is subject to highs and lows, since you can pay off extra principal when you can afford to do so, and pay interest only when your income is at a lower level.

Balloon mortgage

This type of mortgage has a fixed interest rate and stable repayments over the life of the loan, with lower repayments in comparison to a fixed rate mortgage. However, the terms of the loan are generally short, with three, five, and seven years being the most common options. At the end of this time period, the entire balance of the loan is due. The final payment is typically very large, so a balloon mortgage is one which shouldn’t be taken lightly.

Good for: This type of mortgage can be a good option if you plan to stay in the home long term, want to get your mortgage paid off quickly, or if know you can afford the balloon payment. Alternatively, a balloon mortgage can be useful if you know you’ll be moving or refinancing before the balloon payment is due.

30-due-in-7

For the first seven years of the mortgage you have a fixed interest rate which is generally lower than that of a standard fixed rate mortgage. In the eighth year of the mortgage, the interest rate changes to be in line with whatever the current rate is at that time. For the remaining 22 years of the mortgage, the interest rate stays fixed at that rate. Another option is a 30-due-in-5 mortgage, where the interest rate changes in the sixth year.

Good for: These mortgages can be a good option if you’re planning to stay in the house for more than five or ten years and you are willing to risk the possibility that your monthly payments may change substantially when the second interest rate is due.

Whether you own one rental property or fifty you should take a hard look at your real estate taxes.  And we are not referring to income taxes but rather the rental property taxes.  Many people are not aware that you can â??appealâ? these taxes and save hundreds to thousands of dollars per year, per property (or more).

Of the investors that are aware of the rental property tax appeal process many assume it would be too cumbersome in both time and research to bother.  Others are intimidated by debating their city and would rather stay â??under the radar.â?Â  Here are a few facts that may make this more interesting for you:

1.        It is estimated by industry experts that 65% of all properties are over assessed (both commercial and residential, owner occupied or investment).

2.       Less than 2% of all property ownerâ??s appeal their taxes.

3.       70% of the 2% that appeal win some type of rental property reduction.

These stats came from the National Tax Payers Union.  The first thing to do, is figure out if your city claims that your property is worth more than it actually is.  Donâ??t let the cityâ??s jargon throw you off with all of their various terms (Many people believe they do this on purpose).  That is what this is all about, i.e. is your property worth less than what they report it is, and what the tax it off of? 

Rental Property Tax â?? Assessed Value

Every state and city has an assessed value and an assessment ratio.  The ratios vary from state to state and often from town to town.  Some city assessment ratio equals the actual market value (their opinion of it) with others; itâ??s a percentage of the market value.  A 2 minute call to your city will determine the answer. 

In our home state of Michigan the Assessment Ratio is 50% in every jurisdiction.  So, if our city claimed the assessed value of a property is $400,000 that means they think the market value of the property is $800,000 (.5/$400,000). 

Say on that same example that we knew three other properties that where similar, that recently sold for $600,000; we would know that the property was being over taxed and would deserve a property tax reduction.  The savings on that example would look like this.

$200,000 (over valued amount) x .50 (the assessment ratio of 50%) = $100,000 over assessed

$100,000 x .052 (our local millage rate for rental properties) = $5,200 of annual real estate tax savings.  

Rental Property Taxes

Note this annual saving normally goes on year after year.  And if you really learn what you are doing or hire someone that does, you can show an over payment in previous years and potentially qualify for a rebate.  For example if you can prove that you over paid $5,000 per year for five years you would technically be owed $25,000 from your city.  Also, note that the annual tax savings has an interesting affect on your net operating income, and actually theatrically increases your properties value by getting the reduction on the rental property tax.  Itâ??s found money.