Your monthly pay cheque can bring you more than just the New Years Eve gifts or the latest electronic gadgets, it can help you buy a home, car or pay your debts sooner. Investing your bonuses, extra incomes and a little part of your monthly income can join together to form a great tool for you to do anything you like, it can pay off in better way.

If you are planning to buy a home a paranoid about your monthly income not be sufficient enough, then it is high time you get out of ht e dark and realize the truth. You can manage to buy a home for yourself; you just need to be qualified for a mortgage. Along with your monthly income, you have your bonuses helping you. You might have heard it sometimes that some mortgage lenders looks at bonuses in a suspicious eye, but recently there is a provision form the FHA for all sorts o regularly received or monthly earned bonuses. This can help you get approved for a mortgage which you otherwise might not be able to obtain.

The FHA rule 4155 from the FHA bible states in fine lines that both the over time ad bonus incomes can used to qualify borrowers to receive mortgages if the borrows has been receiving such incomes for the past two years and is likely to  continue till the end of the loan life. The policy also states that the lender must perform enough researches on the average bonuses and over time income of the borrower for the past two years and see if it is applicable; for their terms of lending mortgages, and if the borrowers is approved then should the lenders check the borrowers employment verification to see if such an income is likely to continue. In addition, it states that the lender should justify and approve documents for periods that might be less than two years in which the lender will write reports on the reason for using this type of income from the borrower for qualifying the mortgage loan.

In order to qualify your bonuses as income for the propose of FHA, you must show all your documents on pay stubs 1income tax forms and W2s of the last two years or for as long as you have been earning those bonuses. Showing comments of two years or above are optimal and can go away easily for approval, but if you are in this business for a year or so, then it might hurt you a bit but they might possibly not qualify you.

However, you should be careful not be completely dependent on your bonuses if you tic your income is not guaranteed. If you think your financial outlook would be seriously battered if you are out of your bonuses, then you must reconsider the whole mortgage lending plan once more.

There is option that might significantly help your financial picture is that if you apply your bonuses to your mortgage principal, it would reduce the amount of the principal that you pay the interest on. Another viable option to choose from is to put your bonuses or nay other extra monthly income into a high interest saving account and make a lump of cash payment on your mortgage principal each year.

You should always remember that the more frequently you pay your money on your principal, the smaller the amount of mortgage you have to consider paying interest on. Thus it is allows preferable to pay your mortgages as soon as possible.

It is very tempting to mankind to spend their extra income as a free spending tool, but the money can instead be used in the long run to make you some good. You will do a lot better if you plan to inst all your extras into a portfolio that will see some long term return.

Mortgage rates were reported to fall this week. The 30 year fixed rate mortgage has spiraled down to its lowest ever rate since the last 337 years. This is due to the Federal Reserve’s that cut down the interest rates to historic lows the in the previous month.

The government sponsored mortgage lender, otherwise called the mortgage giant, Freddie Mac (Freddie- Fortune 500) said last Thursday that rates on 30 years fixed moorages averaged 5.19% for the week end at December 18. That is down from 5.47% recorded last week and significantly below compared to the rate a year ago when the rate was 6.14%.

Freddie Mac vice president and chief economist Frank Nothaft said that interest rates for the 30 year fixed rate mortgages dropped down with in a series of seven consecutive weeks. He added that the rates have moved to be recorded as the lowest since the survey begun in April 1971.

Nothafft also adds that the mortgage rate decline was catalyzed mainly due to the Federal Reserve’s announcement on the December 16; it is the time when it cut the federal funds that targeted to some record breaking low numbers. The Federal Reserve has also reported to have said that it stood ready to expand all mortgage related purchases like assets as conditions warrant.

In order to reduce the interest rates and stabilize the housing markets, the government in late November has reported to have announced a plan where in it will buy a $500 billion worth of mortgage backed securities. The government will also raise funds of $100 billion on debt issues from the government sponsored mortgage financiers Freddie Mac and Fannie Mae (Fannie Fortune-500).

In addition to all the lower rates, the 15 year fixed rate mortgage has also reported to have fell in its lowest records in four and  half years. The rates averaged 4.92% which is down from 5.02% last week. The rates have dramatically dropped down compared to a year ago at this time, where a 15 year fixed rate mortgage averaged 5.79%.

Along with the fixed rate mortgages, so did dropped the Adjustable Rate Mortgages (ARM). The five year Treasury Index hybrid adjustable rate mortgage has reported to average 5.60% at the current week. This rate has reported to be down from last week when the rates averaged 5.82%. The adjustable rate mortgage a year ago at the same time averaged 5.90%.

The one year Treasury Index adjustable rate mortgage averaged 4.94% this week which is down from last week’s rate that averaged 5.09%. Last year, the rate was reported to average 5.51%.