How to Secure the Best Mortgage Deal and Save Yourself Thousands in Interest
April 30, 2008
When you consider that the average home owner will pay out far more in interest over the lifetime of their mortgage than their home actually cost in the first place, you can see why working to secure yourself the best possible mortgage deal now could save you tens of thousands of dollars in interest over the 25 ? 30 year lifetime of your home loan.
For the majority of us our house is the single most important and expensive purchase we ever make! Because this is the case we invest a lot of time and effort into finding the perfect property in the most ideal location, however few of us invest the time and effort we should into researching and securing the best possible finance method for purchasing our home.
This article will give you a few pointers to make the search for the most ideal and personally suitable mortgage that much simpler; and bear in mind that your search for the best loans and repayment vehicles currently available can be carried out on the internet, making the whole process that much more convenient and time efficient for you.
Budgeting is Bothersome
April 29, 2008
It doesn’t take much for you to get behind on monthly bills, but it sure takes some time to catch up. The comparison in my mind is to weight gain. A one-week vacation can easily pack on 5 to 7 pounds. Losing that weight however, can take a good month of cardio. That’s no fun, and neither is trying to find the extra cash to pay last month’s credit card payment.
Every financial professional’s suggestions in regards to budgeting seem so simple. Five percent to savings, thirty-five percent to housing expenses, ten percent for food?tell me honestly, am I supposed to put all my cash in individual envelopes and label them with their assigned debt? Let’s get real here. Debt is an overpowering epidemic in America. It’s growing every year. I think its time that someone actually made sense out of it all.
If we start in the beginning, it is important to make a budget for your household. Start with any program you like. Try shopping around online for different budgeting calculators. Once you find one that work for you, start making it realistic. It’s easy from an outside standpoint to put everything in a box of percentages. What if your numbers don’t add up? It’s time to think outside the box.
How To Get The Best Home Equity Loan
April 29, 2008
Are you wondering how to get the best Home Equity loan? Do not be afraid to shop around. If you decide that the timing’s right for a home equity loan, ask your friends or family for recommendations of lenders. Comparing home equity loan plans will help you get a better deal.
Contact several lenders, not just the ones that send you mail, call you, or knock on your door. Talk with banks, mortgage companies and mortgage brokers.
Ask all the lenders you interview to explain the Home Equity Loan plans they have for you. If you don’t understand any loan terms and conditions, ask them to explain. That is what they are there for! Would you feel more foolish by asking questions or by having to pay a higher cost than was necessary? Knowing just the amount of the monthly payment or the interest rate is not enough.
Pay close attention to fees, including: the application or loan processing fee, origination or underwriting fee, lender or funding fee, appraisal fee, document preparation and recording fees, and broker fees
Is a Microloan Right for You?
April 28, 2008
If you’ve been tossing around an idea for a small business, but wondering where you’ll find the money you need to get started, perhaps you should consider a microloan. Microloans are ideal for getting a new business off the ground. A microloan can also provide an infusion of cash to help an existing small business grow.
The term "microloan" refers to a business loan smaller than most banks care to process, often to a borrower no bank would consider. The term came into vogue during the 1980’s, as funders began to realize that $200 loaned to a cooperative of women in a third world country could empower those women to start a business capable of supporting their families.
In the United States, a microloan is usually between $2,000 and $35,000. Most microloans in this country are made by non-profit organizations funded by the Small Business Administration, a government agency. The SBA established a pilot program for microloans in 1992, and the program was made permanent in 1997. To date, more than $112 million has been made available to small businesses under the microloan program.
Online, Phone, U.S. Mail or In-Person: Where is Your Credit Card and Personal Identify Safest?
April 27, 2008
Identity theft is the fastest growing crime according to the Federal Trade Commission (FTC). It occurs when someone takes a piece of your personal information and uses it without your knowledge to commit fraud or theft. An all-too-common example is when an identity thief uses your personal information to open a credit card account in your name, or uses an existing credit card of yours.
Did you know that someone’s identity is stolen every 20 seconds?
In a recent survey by the FTC, 12.7% of American adults, or 27 million people, reported that they had become victims of some type of identity theft in the last five years. People whose identities have been stolen can spend months or years — and thousands of dollars — cleaning up the mess the thieves have made of their good name and credit record.
Personal Identity Theft: Key Facts
* Victims now spend an average of 600 hours recovering from the crime of identity theft, often over a period of years. Three years ago the average was 175 hours of time, representing an increase of about 2470%.
Applying for a Home Mortgage Loan Online - The Pros and Cons
April 26, 2008
If you have considered applying for a home loan mortgage online, there are a few pros and cons to think about with getting a home mortgage loan online:
Pros:
1. The process of applying for an online home mortgage loan is very simple, unlike some lenders who operate in the ‘real’ world and ask for heaps of information.
2. The fees, when applying for a home mortgage loan online, can be considerably cheaper than the mortgages in the ‘real’ world.
3. Online home loan mortgages tend to offer a great variety of mortgage loan programs, including more flexible repayment terms and lower rates of interest.
4. Online mortgages are usually easier for borrowers who have bad credit history to obtain. Also, online mortgage loan websites do tend to offer more alternatives to those with a bad credit history.
5. Normally you find out faster if your home loan mortgage application has been pre?approved if you apply online. This means you can move on and apply with other lenders faster, if you don’t get approved the first time.
Cons:
Simple Tips On Getting Your Loan
April 25, 2008
So, you want to get a loan?
Here are some simple tips that will help you make an informed decision about what kind to get, and who to get it from.
First ask yourself: do you really need it?
Can you manage without it? Is it for something frivolous, like a holiday? Could you get the money by other means: part-time job, from a relative, the sale an asset?
Don’t put a monkey on your back if you can avoid it.
A loan varies according to:
The amount borrowed;
The interest rate;
The type of rate (fixed or variable);
The term (repayment time in months or years);
Deposit (downpayment);
Associated fees (broker, origination, prepayment etc.);
Insurance required by the lender.
You are buying money for more than it cost the lender. Simple.
It’s a mistake to only care about the interest rate; there are also arrangement fees and prepayment penalties to consider. Many ‘no fee’ credit lines have a pre-payment penalty. This is how brokers and lenders make their money. Work out the total cost of your loan before committing.
How To Boost Your Credit Score
April 24, 2008
Years ago your credit score was a big secret, known only to a select few such as your mortgage and credit card companies. In 2000, Fair, Isaac Co., the major supplier of credit scoring software, announced they would begin sharing credit scores, also known as FICO scores, with consumers.
What is a credit score? A credit score is a tool used by credit grantors to determine your ability to repay your debts. The information in your credit report is compared and evaluated against tens of millions of other consumer credit reports which gives you a credit score or number ranging from 350 (highest credit risk) up to 800 (lowest credit risk). A higher score means you are less likely to make late payments or default on the credit extended to you. Your credit score will change as the information in your credit report changes over time.
Following is a short overview of the five major categories of credit information that are used in determining your credit score and guidelines for scoring higher.
PAYMENT HISTORY (35 percent)
Poor Credit Home Mortgage Loans - The Role of the FICO Score
April 24, 2008
If you have bad credit history and are looking to get a home mortgage loan, then chances are you are going to need to know all about how the FICO credit scoring system works.
FICO ? Fair ISAAC & Company ? is the leading credit reporting agency that lenders turn to when it comes time to credit scoring your home loan mortgage application; so if you do have bad credit history, these guys will know.
The formula used by FICO cannot be disclosed because of a decision made by U.S. Congress. There are some things generally known about FICO which that could help you understand why and how you can get approved:
1. The higher your FICO score, the better chance you have of getting that home mortgage loan. Also, the higher your score, the more room you have to negotiate a lower interest rate.
2. If you have a FICO score lower than 500, there is very little chance you’ll be getting a mortgage home loan.
That said, if you have a score of:
500 ? 600 you should be able to get a home mortgage loan, provided you are willing to make a down payment.
Balance Transfers Can Help You Stop Putting Money Down The Drain!
April 23, 2008
As you probably know, interest rates are at all time low right now and if you aren’t getting the best deal from your credit card company then they owe it to you to either lower your rate, or you owe it to yourself to find a better deal. You see, credit card companies need your business in order to succeed and if you refuse to pay a penny more than you have to then you’ll be doing yourself and others a big favour indeed. By doing this, you’ll avoid paying more than you should and the companies will stop treating its clients inappropriately.
Now that this is clear, we will talk about the essentials of balance transfers, how they work and how you can ensure that you get the absolute best possible deal.
