Most people have to borrow money to buy their homes. A mortgage with a fixed interest blocks the interest rate during the life of the mortgage. To calculate the amount of your payments, you’ll need to know the interest rate, the time of the loan and the amount you asked.

1. Determine the amount you need to borrow for your mortgage.
2. Determines the time your loan. Most mortgages are 15 to 30 years. The longer you take time to pay, lower loan will be your monthly payments, but pay more interest over the life of the loan.
3. Determines the interest rate you’ll pay. If you have approved a mortgage, the lender will set the rate based on your credit worthiness, your income and many other factors. Lenders typically offer lower for short – term lending rates and people with good credit. If you’re doing a comparison of mortgages, lenders make their rates and time limits are readily available.
4. Determine the periodic interest rate by dividing the annual interest rate by 12. For example, if the annual interest rate is 7.5%, the periodic interest rate will be 0.625%.
5. Indicates the number of payments you will make during the life of the mortgage by multiplying the number of years by 12. For example, if you have a mortgage for 30 years, you will make 360 ​​payments.
6. Add one to the periodic interest rate. For example, if the periodic interest rate is 0.625%, or 0.00625, 1.00625 get.
7. Raises the value of step six to the negative power N, where N is the number of payments to be made during the life of the mortgage, found in step 5. For example, if the number of step 6 was 1.00625 and hast done 360 payments, calceolarias 1.00625 ^ -360 and you would get 0.106139829.
8. Subtract the value from step 7 1. For example, if your value is 0.106139829, 0.893860171 get.
9. Divide the periodic interest rate by the number obtained in step 8. For example, if the periodic interest rate is 0.00625 and the step number 8 is 0.893860171, 0.006992145 get.
10. Multiply the result of step 9 by the amount you borrowed to calculate your monthly payment. For example, if you borrowed $ 300,000 US $ 300,000 US multiply by 0.006992145 for US $ 2.097,64 as your monthly payment.

Tips & Warnings

• You can also calculate your monthly mortgage payment using the following formula where P is the principal of the loan, I is the periodic interest rate, N is the number of payments you will make the loan.
• Payment monthly = P (I / (1 – (1 + i) ^ – N))
• For example, if you have a 30 year mortgage at 7.5% $ 300,000, your monthly payment will be US $ 2.097,64.
• The majority of lenders prefer that your monthly payment does not exceed 28% of your monthly income.
• Lenders also take into account other debt obligations you have as student loans or car. Your total debt payments normally cannot exceed 36% of your income.
• You must consider your closing costs, the amount you need for repairs of your house and the amounts required to place a deposit for house insurance and for real estate taxes when determining the amount you need to ask borrowed. Your deposit, and sometimes your closing costs can be attributed within your total monthly amount and payment of interest.

Applying for a mortgage loan and make your application is approved by a lender is a great accomplishment. Lenders consider many factors when approving applications. Unfortunately, some applicants may not receive mortgage loans because they do not meet all the requirements of the bank.

Stable employment

Buy one house requires a source of stable income. Being self-employed is not enough to qualify for a mortgage loan. Lenders take into account not only whether these employees, but also for how long has this been. Your mortgage loan application will ask about past and present employers; and as a general rule, obtain approval of these loans will require 24 months of consecutive employment. Gaps in your employment history or a history of shorter employment can prevent the approval of a loan.

Same employer

Mortgagees can review how long have you been with your current employer. The change work before applying for a mortgage loan does not necessarily affect the approval of your loan. Lenders consider your employment information in general. They checked to see if accounts with a history of continuous employment and also if you have been in the same field in the case of workplace changes.

Proof of employment

The lenders use several methods to verify your employment history. If you have been employed with a company, you need to provide copies of your most recent paycheck stubs and W-2 forms with your mortgage application. Some also require a letter proof of employment or income signed by your employer to confirm employment dates. If you are self-employed or you are operating your own business, present your tax returns for the past two years.

Reasons for the requirement of two years

Being employed continuously for at least two years is an indication of stability. If you get your first job and then apply for a mortgage loan three months later, very likely result in a rejection, because creditors cannot assess whether you will be able to maintain long-term employment.

It is important to note that although there are variations between different credit providers and even the requirement of a history of use of two years is an industry standard, some lenders may approve your application even with less history. Finding this type of lender involves talking to different banks and ask their credit requirements.

The restructuring of a mortgage, known as a loan modification is the process of changing the loan terms more favorable to the borrower agreement. Commonly it granted when the borrower is experiencing financial difficulties. In order to restructure a mortgage you may have to write what is called a hardship letter loan for the lender to consider it

The restructuring of a mortgage

The restructuring of mortgage loans is the evaluation of an existing loan to change it and make it more affordable for the borrower; It is a permanent change. The changes may include reducing the balance, reducing the rate or extending the mortgage term to lower the remaining payments. It allows the borrower to avoid foreclosure. The terms of a loan restructuring or modification can vary by lender.

Loan Modification Request

In order to receive consideration for restructuring the mortgage loan, the applicant should contact the lender with a phone call to start the process. The lender will ask questions related to income, financial situation and assets of the bank to help make a decision on whether or not the modification request is approved.

Before finalizing this request, the borrower generally must file a written letter describing the situation. It’s a good idea to for borrowers to seek advice from a lawyer of the family when it comes to making a loan modification, as this can be a complicated matter.

Hardship letter

A hardship letter is a note to the lender regarding loan restructuring application. It detailed exactly why the borrower needs to change and how you will pay the house in the future. Common causes of financial difficulty include loss of employment, reduced working hours or a draft law that puts unexpected major crisis household income of the borrower.

What to Include

When writing a letter of difficulty must include the exact details of your financial problems. First, the borrower must identify the type of difficulties, such as a divorce situation, loss of employment or military service. The lender needs to know why the borrower has struggled to make payments and has every intention of complying with the terms of the new mortgage.

If the situation is temporary and the borrower believes that will change in the near future, you must provide this information as well. Finally, a hardship letter must include an itemized household budget so the lender can review your expenses compared to income.

If we want to change the mortgage bank to improve conditions for the first cost it is the commission of subrogation that we pay to our current bank. This committee is regulated by law and cannot exceed 0.50% if the mortgage has up to 5 years of life and 0.25% if mortgage leads signed 6 or more years. According to the bank and the conditions of the current mortgage you can get a 0% on this committee.

Other expenses are about signing with the new bank. The first cost is the Notarial, which will be around $600 (depending on the loan amount). Another expense is the home appraisal that will 300-400 euros, to which the costs of agency (about $300) and registration in the Land Registry (about 100 euros) are added. Total costs are about $1,300, but it depends on the amount of the mortgage.

If we get that the act at the notary is processed, as indicated by the Law as a document without amount of the price it is $30.05 and the cost of registration is only $13.36. If in addition, we negotiated a commission of 0% in mortgage subrogation change can be very cheap.

What should I?

Obviously, there is no better or worse option as they are different alternatives. In the first instance, we were interested in reaching an agreement with the bank to improve conditions, but if this is not possible, it is reasonable to use surrogacy and change our mortgage bank. Anyway, we should not forget that both the subrogation and the novation may incur costs if our entity applies some sort of commission if either of these two options is executed.

In any case, the current mortgage and real estate situation in US, where low interest rates and dynamics of the property market is a fact, favors debtors, who can negotiate your mortgage in a much more attractive terms, not just as the interest rate, but also on the repayment period and the commissions that an entity applies to us.

1. Follow your state laws. The relevant rights owner and tenant laws vary between states. It is very important that you understand these laws jurisdiction when you write a lease. If you end up writing something that is enforceable, your lease may become unusable for you. Start with a standard lease, but make sure it contains the right conditions.
2. Have a lawyer review the lease Get legal advice for two reasons: to make sure your lease adheres to local laws and to make sure you give adequate protection if problems arise. Find an attorney who has considerable experience developing and approving leases and other contracts. He or she will know the right language to be used and the right conditions to be included to make sure your lease is legally irrefutable.
3. Make sure the language is clear. A lease should not be difficult to understand for any party. Do not use a lot of legalities. Write clear, concise sentences. Do your best to ensure that no confusion will arise as a result of a confused lease.
   1. Check the spelling and grammar. A lease with poor grammar, poor punctuation and misspelled words can be confusing to read.
   2. Use special formatting to highlight important information. You can put in bold the amount of rent and the deposit amount and highlight important dates.

Tips

• Always make a legal professional check your lease to verify implementation capacity in the event of default.
• Always check your local laws before executing the lease. When you write a lease, it is important to make sure that does not violate local law contracts.

Looking to rent a property for the first time? Signing a lease with your tenant will help ensure that the process does not have a hard and give you legal recourse if there were any. A lease must be written in clear and straightforward language and should include payment terms, rules that the tenant must follow and the details of what will happen if either party breaks the agreement. Start with a standard lease and then alter it to fit your individual needs and adhere to the laws in your jurisdiction. Read on to learn more about writing a lease.

1. Give it a title to the lease. At the beginning of the paper, write “Residential Lease” or other appropriate title to make clear that it is a legal contract.
2. Identify all parties to the lease. Clearly lists the name and address of the owner and the name and address of the tenant, making it clear who is the lessee and who is the lessor. If you want you can include additional contact information such as phone numbers and email addresses.
3. Describe the asset you are going to cover the lease. If you write a residential lease, type the full address and apartment number of the rental property. Describe the condition of the property and the date of the lease.
4. Sets the duration of the lease. You must have start and end as well as the specific length of time the lease in days, weeks or months. If there is any scheduled interruption in the continuity of use or if there is an option for early termination of the lease, it must be specified.
   • Most leases last for three months, six months or a year.
   • You also have the option of issuing a monthly or weekly lease.
5. Considers all capital associated with the lease. For a rental of property, payment information must include the amount of rent and the stipulations regarding how to pay.
   • Write what day of the month in which income and is due to be sent. .
   • Specifies whether a late fee will apply after a certain amount of time and soon will be. For example, you can write, “If the tenant pays more than 10 days after the due date, the tenant will have a surcharge of $ 60.00 for late payment.”
   • Describe the terms of the deposit. It indicates the amount of the deposit and the terms under which it will be returned. It notes that the deposit will not be refunded unless the property is in good condition at the end of the lease indicates how many days after termination of the lease will be returned.
6. Assigned responsibilities. Indicate who will be responsible to pay for services (gas, water and electricity), responsible for waste and recycling, servicing the external areas of the property and any other specific responsibility for the rental property.
   • Check local laws to find out how to analyze the responsibilities. In some cases the owner will be legally obligated to pay the gas and water, while in other areas the tenant should be responsible for these expenses.
   • Indicates who is responsible for making repairs, maintain the equipment in operation and so on. Again, you should check your local laws to determine what should be your role. In most cases the owner is responsible for the living space remains safe and functional.
   • It indicates that the tenant is responsible for informing the owner about the problems with the rented property, including safety concerns, lost keys, etc.
7. Describe the specific obligations of the tenant under the lease. This should provide that the tenant is responsible to adhere to all applicable laws; the tenant agrees to use the property only for its intended use and that the tenant is responsible for any violation or fines received by fail in their duties.
   • It states that the rental place should be used for residential purposes only.
   • Write what to do if the tenant damages something inside the property.
   • Specifies whether the tenant is allowed to make changes to the property. For example, if the tenant wants to paint the walls, install a modem and so on, you must set in the lease if these changes are allowed.
   • Decide if pets are allowed and specify the rules regarding these in the lease. You may need an additional non-refundable deposit for each animal pet Based on weight. You can indicate whether pets are allowed inside the house or whether they should be left out. You can specify the actions you will take if pets are not treated humanely. Carefully considers all aspects of allowing pets in your home.
   • It determines if the tenant is allowed to sublet the unit and describes the process for doing so.
8. Specify the consequences of missing payments or violate the terms of the lease. You must detail the actions the owner if the tenant fails to make the agreed payments or if found violating other assigned duties. Detailing the resources available to you as an owner, including eviction, seizure and / or legal action.
9. Includes space for both parties sign and date the lease. The landlord and tenant must sign the lease for the contract takes effect.

1. Claims uninhabitable. This can be something as simple as the pool it is not available (when the contract states that you are entitled to it)! You are not obliged to stay in a situation that is dangerous or can only counteract what you guaranteed to start.
   • For problems inside your apartment. Are there any sharp or exposed edge? Do the pests return? Are there dangerous fumes into the air by sewage leaks? Does the heater is broken? You cannot cause these problems, but keep an eye on the conditions of your home that are lower than what you’re paying for quality.
   • Troublemaker out of your apartment. Do the doors are broken and are unsafe? Is not nothing like the model you were taught? Is the parking is neglected? If so, you can claim you were deceived or feel insecure with the current circumstances.
   • Give opportunities to your landlord to fix the problems. Unfortunately, you cannot leave your place of residence and then indicate problems. However, if you do not fix “within a reasonable time” you have a just cause to terminate your lease. Notify him or her by registered mail and in person, especially if you expect legal complications.
2. Cites a legal unit. This requires a bit of research, but is more common than you think. Inquires as to government regulations and history of the building in which you live.
   • If a garage or other section was converted into a housing area that might be illegal. Investigates the appropriate permits and zoning violations.
   • If the building has a foreclosure or are changing owners, these circumstances make you a legal termination.
3. Research your landlord. Many apartment managers and housing have to take his word. If they are not who they claim to be, this is an automatic timeout.
   • Your landlord may be an administrator of unauthorized property or a tenant who is subletting his apartment without notifying the owner. Or it could be a much bigger issue if the intermediary company that you work there legally.
4. Use the unfortunate circumstances to your advantage. If a situation that is beyond your control arises, you can use to end your lease legally. Some valid reasons are:
   • Being called to military service
   • Domestic violence in the place of residence
   • serious injuries and hospitalization
   • Declare bankruptcy

1. Looking for a buyout. Some contracts have a clause that ends your obligations early. Read your contract carefully to see what options you have. If you cannot find your contract, most states require the landlord to provide a copy if requested.
   • A clause is a section of your contract stating that a certain amount of money and with adequate notice may terminate your contract legally. It is often only a portion equivalent to the accumulated income.
2. Search ambiguities. If something is not clear or is marked twice, bingo on your lease. Read and re-read your contract to find the slightest instance of something that is not clear.
   • Some landlords will give you a document that looks like a lease but is actually a monthly lease.
     • The agreement says that the security deposit is not refundable unless you stay for X amount of months. This means that the document is a monthly lease with an illegal provision of deposit (can never be non-refundable).
     • If you indicate that your free month of rent is payable unless you stay for X amount of months. This is also a monthly lease with an illegal attempt to give back to the laws of non-refundable deposits.
     • Unless the agreement indicates an external date that ends or otherwise defined the end of the lease over a period of time, like a year, you probably have a monthly lease.
   • If the contract is your original work on an extension now, you probably have a monthly lease.
   • Search check boxes are checked twice and illegible sections (in both sets of documents).
3. Take advantage of the civil codes. If you make a list of reasonable demands are not met your landlord, you are absolutely right to legally renounce the premises.
   • Write a letter (be sure to keep a copy) stating your demands in a reasonable and thoughtful manner. This is especially for a judge to see it later.
   • If your landlord makes little or no effort to meet your demands, you can bring him to court. He is not fulfilling its part of the contract. Take every week to fulfill the request is not enough; their responsibility should be punctual and organized.
   • Every state in the US varies, you should check to see what landlords must offer in your state.