Ariel Metekingi knew there was a way to pay off debts and a home mortgage quicker than what was being offered on the US market. Living in New Zealand where homeowners pay off their homes and are debt free on an average of 6-10 years, he experienced how it worked there and in Australia.

“I was surprised to find that Americans, generally considered worldwide leaders and innovators, are laboring with archaic mortgage programs where the major face-lift has been bi-monthly mortgage payments and the second mortgage,” says Metekingi. “I found that the American Mortgage industry was seriously lacking in some of the wealth building mortgage and financial principles that have become so prevalent in New Zealand and Australia.”

Enter Money Principal Group, a company located in Utah, founded by Metekingi. Their premier innovative mortgage product, The Mortgage Eliminator, is based on a 30 year+ proven Australian industry standard and model in use by over a third of homeowners in that country. It was later introduced to the New Zealand market, where homeowners achieve similar results; paying off their debts and mortgage on average of 6-10 years.

This powerful new tool to combat the current financial plague of debt in America combines a mortgage and a full-service bank account. The new “all-inclusive” type loan creates huge savings in interest payments and loan payoffs in one-half to one-third the time requiring little to no change to current spending habits or income.

How does it work? Homeowners deposit income and other assets into the new mortgage account and since it allows access like a checking account, expenses are paid out from it by check or ATM card. The fundamental part is, when the homeowners’ money isn’t being used it sits in the mortgage account reducing the daily loan balance on which interest is computed. This saves on average hundreds of thousands in interest over the life a typical loan. Less interest paid means more money for principal, so the homeowner builds equity faster and owns their home sooner.

“What this does for homeowners, is it empowers them to take control of their financial health,” says Metekingi. “With our program, a homeowner can combat the financial cancer known as consumer debt plus current mortgage options and it allows the homeowner to reach their goals sooner in life, rather than later. This isn’t a mystical trick of numbers; it is simply taking away the interest spread banks earn and gives it back to the homeowner.”

Is this new loan product and system for everyone?

Yes, if you can achieve the simple disciplines of budgeting and currently have positive cash flow or are willing to review your budget to recover funds to create significant positive cash flow. You must be coachable and allow your goals to dictate your plan of action. If you’re willing to do that, the payoff is unlimited and getting rid of debt and your home mortgage in 6-10 years is no longer a dream, it’s a reality.

“The ability to be mortgage free within 6-10 years, quickly eliminate consumer debt, and free up existing income to start a significant investment program for the future is a now a reality. This can all be possible without requiring any additional income or reducing standard of living. The Mortgage Eliminator has empowered the individual in New Zealand and Australia to positively impact their own financial destiny in ways, which traditionally, many could not otherwise achieve,” says Metekengki. “It is now available for the US, to achieve the same level of financial success and freedom, already experienced and proven in these international markets.”

For more information on how you can be debt-free and pay off your home mortgage in as little as 7 years, and experience the savings with the Money Principal Program using their proprietary calculator, visit http://www.PDXLoan.com or call 1-800-862-0784 ext 21.

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The comparative rate last year was 7%, which now has been reduced to 6.2- 6.5 %. A survey conducted in the second week of January shows that the average interest rate for a 15-year fixed loan is 5.98% whereas that of the 30-year jumbo loans is 6.47%. This indicates that there has been little or no increase in the rates during the past one year, and it is well below the average of the past twenty years, that is 8%. However, the market experts predict a slight increase in the interest rates in the current year. For a 30-year fixed rate loan, it is likely to reach about 6.7%.

The interest rate for the 30-year FRM has not been affected by the Federal Reserve short-term interest rate. Over the past five years, the interest rate for the 30-year FRM has remained below 6.5 percent. When the Federal Reserve increased the interest rate in last June, the mortgage rate had reached at 6.93%. But later in the meetings held by the Federal rate-setting committee in August and later in September, October and December it was decided that the rates would not be increased, paving the way to the present scenario.

The adjustable rate loan rates also show a tendency to fall down. As is seen from the comparison, the rates for the adjustable loans have also fallen in the past one year, though not very significantly. For a 30-year loan, with a fixed interest rate for one year, the average rate was 5.97% in the second week of January, where as that for a fixed interest rate period of five years was 6.17%.

There is an assumption that the Adjustable Rate Mortgage (ARM) rates are going to be revised in 2007, and the monthly mortgage payments of ARM borrowers are likely to increase. The households that can afford the heavy monthly payments shall only opt for a fresh ARM. Having a perception that the Federal Reserve will lower the short-term interest rates in the future, adjustable rate mortgage may be a better option. However, considering the upward trend of the interest rate of the short-term loans, your mortgage debt may end up to be a nightmare for you.

In the present scenario, debtors are trying to get out of the ARM as much as possible. This is the best time for refinancing your loan in order to avail a better interest rate for a fixed-interest rate plan.

For those planning to buy a house, the interest rates may not be a prime concern; to an extent, the market value of the property is the deciding factor for them. But for those who think about refinancing the mortgage, this may be a better chance, and keeping a close watch on the interest rates will help them to pay off their mortgage loan in a smart way.

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Getting a low rate refi loan may decrease your monthly mortgage payments by a few hundred dollars. For this matter, homeowners consider obtaining the lowest possible rate a primary concern. Before accepting a refi offer, researching and comparing offers are essential.

Benefits of a Low Rate Mortgage Refi Loan

If you are hoping to save money on your mortgage payment, refinancing your current mortgage is the solution. Refinancing is not ideal for everyone. Prior to applying for a new loan, take into consideration current mortgage rate, length of time you plan on residing in your home, and credit score.

If your current mortgage rate is comparably low, perhaps one percentage point higher than current averages, you may not realize huge savings from a refinancing. Moreover, if your credit is less than perfect, some lenders may not offer superb low rates.

Secondly, refinancing benefits homeowners who plan on living in their home for more than seven years. If you plan to move in a few years, the closing costs and fees paid will outweigh the savings.

Savvy Buyers Shop Around

If contemplating a refinancing, shop around for the best loan package. No obligation quotes are offered by various lenders. You have the option of choosing a local lender or an online lender. Before making a decision, request a quote from your present mortgage company. This is beneficial for two reasons. One, a good payment record has been established. Two, present lenders may waive some fees. Although current lenders may remit a great offer, do not make an immediate decision. First, obtain quotes from three additional lenders.

What are Online No-Obligation Quotes?

If you request a quote from an online lender, the lender will assess your stated credit rating, income, desired loan amount, and submit an estimated loan offer. Quotes include terms, interest rate, closing costs, and estimated monthly payments. This way, you can review several loan options before finalizing your decision. After acquiring three additional quotes, compare all four lender offer’s side-by-side. Pick the lowest rate mortgage refi loan. Lastly, complete an online application. At this time, the lender will review your credit report and offer a final approval notice.

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Getting approved for an auto loan is easy. However, obtaining a low rate auto loan may be a bit more challenging. When financing any sort of merchandise, the interest rate received makes a huge difference.

If you have bad credit, a lender will likely charge a higher rate. In some instances, this may significantly increase the monthly mortgage payments. If shopping for a new or used vehicle, adhering to the following tips will increase your odds of snagging a low rate auto loan.

When is the Best Time to Apply for an Auto Loan?

If financing an auto loan, timing is a crucial factor. For the most part, lenders prefer applicants that display stability. Thus, steady employment is a must. When applying for an auto loan, wait until you have been with your current employer for at least six months. If you have a habit of switching employers every two to three months, an auto loan lender may consider you a risky applicant, and increase the auto loan rate.

Establish Credit History

Before financing a home or auto loan, establishing previous credit history will work to your advantage. Auto loan lenders are more apt to offer lower rates if you have maintained a good relationship with a previous creditor.

Building a good credit history is easy. You may do so by applying for a major credit card, gas card, or retail credit card. Upon receiving the card, make a few purchases, and pay the balance each month. This will reflect positive on your credit report, and quickly boost credit score.

Keep a Low Credit Card Balance

When judging an applicants credit history, lenders will also assess whether a loan applicant can afford a particular vehicle. If you have acquired a lot of debts, this may prevent you from obtaining your dream car. Therefore, attempt to reduce debts before applying for a car loan. Fewer debts will increase your spending power, and make you eligible for prime rates.

Wait at Least Two Years after Filing Bankruptcy

If you have filed a recent or past bankruptcy, try and wait at least two years before applying for an auto loan. After a bankruptcy, lenders consider you a big credit risk. You may get approve for financing; however, the interest rate may climb as high as 18 percent.

Instead, focus on rebuilding your credit history. Immediately following a bankruptcy, apply for a bad credit credit card. If possible, attempt to open at least three new lines of credit. By doing so, you will re-establish a good credit history and improve credit score. After 24 months, you will likely qualify for a reasonable auto loan rate.

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Cheap mortgage insurance should be given consideration if you are in full time employment and have monthly mortgage payments to make. If you should find yourself out of work due to suffering from an accident, sickness or through unemployment then you could be left struggling over where to find the money each month to keep the roof over your head.

Providing a policy meets your needs then cheap mortgage insurance can give you a tax free income each month with which to continue meeting your monthly mortgage repayments. The cover would begin once you had been out of work for a period of time which can be from 31 days but up to 90 days with some providers and the majority of policies are backdated to the day you first came out of work. Policies then continue to payout for up to 12 months and with some providers for up to 24 months which can give great peace of mind and security.

You do have to be aware that cheap mortgage insurance isnt suitable for all circumstances and there are reasons which could stop you from making a claim and these are usually found in the small print of the policy. Some of the most common reasons which could mean you would be ineligible to make a claim include only being in part time work, being retired or if you suffer from a pre-existing medical condition.

Stick with specialist providers for the cover and make sure that a policy would be suitable for your circumstances before signing for the cover and you would have a safety net on which to fall if you should lose your income.

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Adjustable Rate Mortgages Talking About Interest Rate Caps

An adjustable rate mortgage is just what it sounds like. The interest rate can be adjusted to match certain interest rate standards. The advantage of such a loan is it can seriously lower monthly mortgage payments if interest rates are low. Over the last few years, of course, rates have been incredibly low. Rates are now rising and you need to understand what that means for your adjustable rate mortgage.

Since the interest rate on your loan is adjustable, you should be getting a little nervous about rising interest rates. That being said, most loans have graduated step increases and caps that keep things from getting nightmarish too quickly. Here is a closer look.

A good adjustable rate mortgage protects you from massive rate increases through something known as rate caps. There are two types of rate caps. Each has benefits and negatives.

A lifetime rate cap is just what it says. This cap sets the maximum interest rate the lender can charge you for the loan. You must always demand a lifetime cap on any mortgage you take out. Assume you take out an adjustable rate mortgage with an interest rate of four percent. As part of the agreement, the loan has a lifetime cap of eight percent. If interest rates shoot up to 10 percent, your loan will cap out at nine percent. While this is a high interest rate, it is a lot better than paying 10 percent.

Periodic rate caps also protect you, but in a different way. A periodic rate cap defined the maximum percentage your interest rate can increase over a period of time. The shorter the time period, the better the cap. If your loan document allows the lender to adjust the rate every six months, the cap may be as low as one percent. This means the lender can only increase the interest rate by a maximum of one percent, regardless of what the market is charging for new loans.

Adjustable rate mortgages are great when interest rates are low. When rates start creeping up, however, you need to take a close look at your caps.

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Adjustable Rate Mortgages ARMs

Adjustable rate mortgages carry a bit of a gamble for home owners. Essentially, you trade smaller interest rates and lower initial payments on the gamble rates will not increase over time. If rates stay low, you make out like a bandit. If rates increase, you need to consider your options to avoid getting stuck with a high interest rate loan and resulting cash flow problems from increased monthly mortgage payments.

For the last three or four years, adjustable rate mortgages have been offered with incredibly low interest rates. Many people used these low, low, low rates to buy homes that would otherwise be beyond their means. Starting in 2004, Federal Reserve Chairman Alan Greenspan started making noises about increasing money borrowing rates. He has followed through on these hints. Although mortgage rates arent tied directly to the Federal Reserve Bank, they are heavily influenced by it. As a result, many people are now facing tight finances.

Avoid Rising Rates

There are really only two solutions for avoiding the increase in interest rates on adjustable rate mortgages. The first strategy is to immediately convert to a fixed rate mortgage product. Fixed rates are still at historic lows when compared to rates offered over the last 50 years. By flipping to a fixed rate, you will be able to solidify your budget and finances since you will know exactly what you have to pay each month. If rates decrease in the future, you can always try to flip back to an adjustable mortgage loan.

Unfortunately, some home owners are simply going to have to face the fact they lost one the interest rate gamble. Typically, this will occur when you realize you simply cant afford to make the monthly payments required by getting a fixed rate loan. In such a situation, you are going to have to sell your home and downsize. In most situations, it is better to do this now since youve probably built up a sizeable chunk of equity over the last few years and want to avoid a loss of that equity as the market cools down. While this may sound like a disaster, it really isnt. Yes, you have to downsize, but you should still have built up a chunk of equity.

Interest rates are going up whether you want to acknowledge it or not. The time to deal with your adjustable rate mortgage is now, not when you straining to make payments.

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