Beginners' guide to mortgages - MoneyWeek investment tutorials

A property mortgage is the biggest debt most of us will ever take on. So choosing the right one is vitally important. Tim Bennett explains the basics of mortgages and highlights the main pitfalls to avoid. Related links: - Introduction to house price surveys http://moneyweek.com/videos/introduction-to-house-price-surveys-10107/ - Why you need an Isa http://moneyweek.com/videos/why-you-need-an-isa-10616/ - How to cut your tax bill http://moneyweek.com/videos/how-to-cut-your-tax-bill/ - A beginner's guide to pensions http://moneyweek.com/videos/a-beginners-guide-to-pensions-60900/ MoneyWeek videos are designed to help you become a better investor, and to give you a better understanding of the markets. They’re aimed at both beginners and more experienced investors. In all our videos we explain things in an easy-to-understand way. Some videos are about important ideas and concepts. Others are about investment stories and themes in the news. The emphasis is on clarity and brevity. We don’t want to waste your time with a 20-minute video that could easily be so much shorter. We’ve already made over 200 financial videos and we add more each week. You can see the full archive here at MoneyWeek videos: http://moneyweek.com/video-tutorial/

Comments

1. jesus.. much appreciated.. what a great lecturerer
2. 125% lvr is good for covering closing costs, interest
3. Amazing tutorial!! Thanks for sharing such an informative and educative video. It was very helpful. If you are in need of trustworthy and reliable mortgage broker in Farcet than I would like to recommend The Mortgage Bureau Peterborough, they were a great help. Visit: http://plus.google.com/106325822557738101035/about
4. I love this guy!
5. this may sound like a dumb question but how different is all this great info for Americans? Or is this a universal language?
6. Read these scenarios if you want to understand what's really going on:
   1. Wealthy person buys $300,000 home with cash. 20 years later sells the home for $600,000. Profit: $300,000 (minus home ownership expenses)
   2. Middle class person who can't afford to pay $300,000 cash for a home (99.99999% of the middle class) gets a mortgage from the bank aka wealthy people. 20 years later middle class person sells the home for $600,000 but ended up paying the bank $600,000 over the course of the mortgage. Profit to middle class person: $0. (You might consider that free rent for 20 years, but that's in a perfect world. That's also a 20 year struggle to make the monthly payments and if most of your money over the course of those 20 years goes towards home payments, then by the end you are technically considered worthless despite the fact that you own a home. Regardless, you earn nothing) Profit to bank aka wealthy people: $300,000.
   3. Lower class person rents a home or apartment valued at $300,000, which is owned by a wealthy person who paid cash for it, for $1000/month for 20 years. After 20 years wealthy person sells home for $600,000. Profit to lower class person: -$240,000 (that's negative $240,000 to clarify). Profit to wealthy person: $540,000.
   Conclusion: If you can't pay cash for a home, or anything for that matter, then you are getting screwed no matter what. Your nothing unless you own something. Having a roof over your head is one of the most important factors of life. This is why certain groups of the wealthy make it one of the most controlled, manipulated, and hard to obtain objects. This is a huge factor for how the rich get richer. By holding down everyone else by using everyone else as a means to make them richer. Do you see the cycle? Not all wealthy are to blame entirely for intentionally and directly doing this just because they're wealthy, it's how the system works. But since the system was developed by wealthy people for wealthy people, well....you get the point. Now wake up people.
7. Anyone who talks with their hands as much as their mouth automatically has my undivided attention. Excellent video!
8. You're a really good teacher, definitely would have listened to you at school if they taught this!
9. So let's say you've gotten the 125% ltv like he says. What's keeping you from making 25 grand let's say... Invest 100k so it doesn't look fishy, let them take it and keep the 25k. Free 25k anyone? xD
10. great info and well presented
11. great class!
12. You're a wonderful teacher!
13. Thank you
14. Thank you so much ! Keep making such videos. Put some Aads i will click one everyday.Very good Video.
15. Really helpful video. Thank you for sharing.
16. Thanks for that
17. can anyone tell me where to find a mortgage if I want to put my existing home as a deposit without paying any money upfront? And what is the term for that sort of morgage, coz I can't find it on the net?
18. Hello, thank you to make this possible. I am a financially uneducated person with a good graduate salary that is struggling to understand all these technicalities and you are making it easier for me.
    
    What is an arrangement fee that you mentioned in 11:24?
19. sounds like a rubik's cube nobody wants to solve because your room mates are all coming down from a night of snorting coke. a place to live shouldn't require a math degree and more planning than a mission to mars. fuck it i'm staying at my parent's house.
20. Thanks for making this really simple and easy to understand x