Finance, Loan, Debt and Credit.

December 31, 2015

Interest Only Mortgages Vs. Regular Mortgages

Filed under: Mortgage — Tags: , , , , — admin @ 12:46 pm

Mortgage finance is one of the most popular options available for average home buyers. There are a variety of mortgage options and each caters to specific requirements of borrowers and their paying capacity. While borrowers can negotiate the terms and conditions of mortgage to be availed of by them, it is always a good idea to do homework well before initiating steps to negotiate the mortgage loan with mortgage lenders and mortgage brokers.

Interest only mortgage is one of the better options available to borrowers who want to make small payments during the initial stages of mortgages availed of by them. Here the borrowers have to pay only the interest portion on the mortgage. As the initial repayments are considerable lower, borrowers can manage their finances in an effective manner. The interest only payment period usually lasts for about 5-10 years; depending upon the option chosen by you. You can also decide to pay more than only the interest portion during the initial duration of your mortgage, if you like.

Regular mortgages on the other hand, involve paying equated monthly amount where part of principal amount along with interest is paid every month.

While the interest mortgage option looks great on the face of it, you need to consider the option carefully. This is because though the initial amount payable is less, once the interest only period is over, your installment increases tremendously. Thus unless you have planed your finances carefully, whereby you can raise enough finances later on during the mortgage period, you may feel the pinch. Thus while the interest only mortgage may allow you the option to buy a relatively larger home, you need to be aware of the fact that later on, you may need to pay a larger amount towards principal repayment during the mortgage period.

Most interest only mortgage lenders offer adjustable rates, which mean that in case of rising interest rate regime, your monthly installment amount may rise considerably or alternatively your repayment period may be enhanced depending upon the rise in mortgage rate. Secondly the mortgage option can be considered a good option only when your income is expected to rise during later period of your mortgage period, when your principal amount starts getting repaid.

An interest only mortgage loan can allow you to purchase a much bigger and lavish home on account of the low initial payments. However it is always advisable to set aside a small amount towards the principal repayment as your monthly installment may shoot up considerably immediately after the interest only period is over and you may have to face the reality of rising monthly payments.

The best option before going for an interest only mortgage is to evaluate the financial needs and requirements compared to expected cash inflows in future.

Steps To Refinance A Fha Mortgage Loan

Filed under: Loan — Tags: , , , , — admin @ 12:48 am

Steps to Refinance a  FHA Mortgage Loan:

Step 1: Contact your local  FHA mortgage lender or bank and explain that you want to refinance the existing FHA mortgage loan. You do not have to work with the lender or the bank, which is currently servicing the loan. You can shop around for lenders to offer the lowest fees or the  fastest turnaround time.

Conditions Required to Obtain a FHA Loan:

Ask the lender about streamlined FHA refinance. This type of refinance is only for homeowners who already have an FHA loan. FHA Streamline mortgage refinance require much less documentation than not a traditional refinance. You will only be eligible for streamlined refinancing if you currently are in a FHA Loan. Home Mortgage Louisiana

Step 2:  Send the lender by fax, mail or e-mail, depending on preference, all documentation that is requested by the mortgage lender.

Step 3: Give step the lender permission to check your credit and to appraise your home. Both are important for the refinance process. Lenders rely on consumers credit score – anything above 720 is considered good, while scores below 620 is considered bad – to determine if they will lend you money and what interest rate. They will send an appraiser to ensure your home value has enough equity.  Most lenders and banks require that you have at least 90 percent equity in your home.

FHA Home Mortgage Loans are Backed by the Federal Housing Administration and is an increasingly popular choice for home buyers. This is partly because the FHA loans require only a 3.5 percent advance in the home purchase price, as most mortgage lenders require 20 percent down payment.

December 30, 2015

Taking Out A Home Equity Loan For Credit Card Debt Consolidation? Wait!

Filed under: Credit — Tags: , , , , , , , , , , — admin @ 12:47 pm

So you’ve reached the point where you know you need help with your credit card debts, and you’ve decided it’s time to pay them off with a home equity loan.

Wait! There are other options. You don’t need to risk the home you’ve worked so hard for, in order to get rid of those credit card balances.

Hector Milla Editor of the “Credit Card Debt Free” website — http://www.CreditCardDebtFree.org — pointed out;

“…A home equity loan can be a great tool for certain purposes, For example, if you are planning on rehabbing your home, it makes sense that the cost of the work should be secured by the underlying property. After all, you are going to increase the value (that is, the equity) of the home when you do the work, so it should be reasonable to take out a loan against that equity to pay the cost…”

However, taking out a home equity loan to pay off outstanding debts, such as credit cards, can be a much riskier proposition. For one thing, nothing about the underlying budgeting situation has changed – you have simply shifted the debt from unsecured loans in the form of credit cards, to a loan which is secured by your home. That’s great for your creditors, since they now have something major to take from you should you default. But it’s not so good for you.

To understand this better, you’ll need to understand the two types of debt: secured and unsecured. Secured debt is a loan like a mortgage, which as an underlying piece of real property as collateral. If the loan goes bad, the lender has some kind of recourse: he can foreclose on the home.

Unsecured loans do not require collateral. They are made based on a promise to repay. This does not mean the creditor has no recourse; he can go through all of the usual debt collection techniques, such as hiring a collection agency and reporting to the credit bureaus. But he does not have a claim on your home.

“…Understanding the options that are available to you is vital before you engage in debt consolidation. Taking out a home equity loan to pay off your credit cards means creating a second mortgage on your home. Even with the best of intentions, this can create a disastrous situation unless very carefully managed. If you have trouble paying the new debt, as you had trouble paying the old ones, the consequences are much greater. If you’re thinking about it, think again…” H. Milla added.

Further information about trusted and reputable companies for credit card debt settlement by visiting; http://www.CreditCardDebtFree.org

Have You Got Credit Card Debt Of Over $10,000 – Debt Consolidation Can Be Your Best Option

Filed under: Credit — Tags: , , , , , , , , , — admin @ 12:46 am

In a world that runs on plastic, it’s normal to have some debt. After all, no one expects you to pay off your credit card balances every single month.

When debt gets to a certain point, it’s time to worry. For example, if you got credit card debt over $10,000, debt consolidation can be your best option for getting out of this situation. It’s smart to deal with this situation as soon as possible. Having thousands of dollars of debt is more serious than a few hundred on some credit cards.

Hector Milla Editor of the “Credit Card Debt Free” website — http://www.CreditCardDebtFree.org — pointed out;

“…If you don’t deal with this issue, it could spiral out of control. The following are some of the reasons to consider debt consolidation if you have over $10,000 in debt. One of the best things about consolidation is that you go from having many bills to just one. You won’t have to juggle bills every single month or worry about calculating how much you owe. Instead, bill paying is made simple when you have only a single payment to contend with…”

Consolidation is smart on debts over $10,000 because you can save money on interest rates. When a bank makes 10% or even as much as 25% on your monthly balance, it can really add up. Debt that is over 10,000 can be difficult to get out of because of the high interest rates on so many bills. Consolidation means that instead of dealing with many interest rates you only have to deal with one. Thus, you can save on how much you pay creditors each month.

If your debt has reached this high, then it’s likely that bill collectors are calling and emailing you on a consistent basis. Consolidation means that you have a long or a high balance credit card with which you can pay off such bills. This means the end of constant phone calls from collectors looking for their clients’ money. Such a small change will really relieve a lot of stress from your life.

“…Really, if your debt is out of control and you owe thousands of dollars, it’s time to look into consolidation. This is a proven way to deal with out of control bills. Get bill collectors off your back, streamline your bills, and lower your overall interest rates so that you can dig yourself out of this mess! With the help of the right company, this is more than possible…” H. Milla added.

Further information about trusted and reputable companies for credit card debt settlement by visiting; http://www.CreditCardDebtFree.org

December 29, 2015

How and Where Do I Get My Tax Refunds?

Filed under: Tax — Tags: — admin @ 12:47 pm

Every year, the Internal Revenue Service reports that it cannot get refund checks to a large number of taxpayers. No, it does not try to hide this fact. It actually will publish news releases and contact media outlets to get the world out. This year, the IRS is trying to find almost 100,000 people that it has refund checks for. The total dollar figure for outstanding refunds is over $92 million dollars. That is almost a grand per person the IRS cannot find.

How do I get my tax refunds?

To get your tax refunds, you have to file your tax returns. You can do this on your own or by hiring a tax accountant or specialist. You must also make the deadline, which is usually in April, or file for an extension. You can find more information on these topics at the IRS website.

Most individuals opt to file taxes on their own to save from having to pay professional fees to tax specialists. Thanks to the Internet, almost anyone can easily file their taxes online! There are many software and program choices available online.

You will need your W2’s or 1099’s, and other documents to file your taxes. Once you have these documents, you can use online tax filing programs to plug in your information. Tax filing programs are easy to use, with clear instructions and instant help. The program will guide you through each step, and will even help you find deductions to maximize your deductions and refund checks!

Where do I get my tax refunds?

You will usually receive your tax refund checks in the mail within three weeks. When you file your taxes online, you can also choose to have your tax refunds directly deposited into your bank account. All you need is your bank account and routing numbers, which you can easily locate at the bottom of your personal check. When you choose the direct deposit option, you’ll receive your check in half the time.

The most important thing to remember about tax refunds is that you have to file to receive them. So save all your receipts and documents for deductions, and get your tax returns in by April –your money is waiting!

How To Refinance A Home

Filed under: Loan — Tags: , , , — admin @ 12:49 am

We strive to live the American Dream of homeownership.  Our goals are simple:  A few bedrooms, someplace to lay down roots and watch our equity blossom. People tell us to stretch to get into the most house that we can afford. We look for what appears to be the cheapest mortgage and pick out some paint colors. It’s only a few years later that we realize that things are a little tighter than expected, some hefty home improvements are needed and we have some nagging credit card debt hanging over us. Our mortgage is no longer fitting us and we need the scoop on how to refinance a home loan.

Things to Gather:  Regardless of your situation, you will need the following information before you make any contact with a lender:1. Copy of current loan Note (Usually a document titled “Promissory Note”)2. Most recent mortgage loan statement with the balance of the loan3. Dollar amount of homeowners insurance and annual property taxes (for escrow calculations) – You can call your City Treasurer for tax information.4. Pay stubs (for gross & net monthly income)5. List of any other loans & their minimum payments6. An idea of your credit score (You can order a free report online.)

Understand What You Can Afford:  If you are planning to refinance a home loan, you are either:• Checking to make sure you are getting the best deal around;• Finding yourself in a tight position due to job loss, reduced income, an adjustable rate loan or are in over your head with debt;• Have concerns about the future & want to shore up your finances before you are stuck in a difficult position with fewer options.

All three of these situations required that you must complete a budget to determine exactly what you can afford. Mortgage lenders will generously allow borrowers to take loan payments that are up to 28% of their gross monthly income, but this may be way too much for many people. A budget is simply monthly take home pay less every single expense.

Be sure to include everything:  Loans, utilities, tuition, food, dining out, kid’s lunches, vending machines, entertainment, gifts, subscriptions, medical deductibles. Also, be sure to allow 10-20% to be set aside for savings. What is left is what you can afford for your mortgage payments (including tax and insurance escrow). Don’t let any lender convince you that you can afford more.

Pick a Lender You are Comfortable With:  If you are having trouble due to a “hardship” situation i.e. job loss, medical expenses, then contact your current lender first. There is a federal program called “The Making Home Affordable Program” that can help lenders work better with their customers in these situations to refinance a home.

If you just want a better rate, shop around. Banks and credit unions are usually very straight forward and use traditional documentation when they refinance a home loan. Most will want an 80% loan to value (LTV) or better. You can check out websites, like Zillow.com to get an idea of what similar homes in your area are going for. If you have at least a 93.5% LTV, you will need an FHA loan. Mortgage brokers will have a variety of loan packages that you may be able to consider. The key difference is that with a broker, all loans will be sold to a servicer, so you will definitely be dealing with a different company after closing.

If you plan on staying in your home for at least 5 years, you may want to consider “buying down” your rate by paying points. Each point represents 1% of your mortgage amount that you pay at closing to reduce your interest rate. Fixed rates are much easier to budget for. Adjustable rates(ARMs) will carry uncertainty of future changes in your payment amount. If you choose an ARM, be sure you fully understand how high rates can go, when they can change and what that may mean to your payments.

Be sure to understand every single term of your loan agreement(s) and every fee that you will be obligated to pay. Never be afraid or ashamed to ask questions and never settle for an answer that you don’t fully understand. A final note of caution: Once you agree to complete a loan application, the lender will be pulling your credit report. This credit report will help to determine what interest rate you will qualify for. Too many inquiries on your credit report can have a negative effect on your score, so narrow down the lender(s) that you feel comfortable with and have most of your questions answered prior to agreeing to complete an application to refinance a home.

December 28, 2015

Car Loan Repayment Methods – Ways Not to Hurt Your Credit

Filed under: Loan — Tags: , , , , , , , , — admin @ 12:46 pm

Car loans are very important, highly required, and needed in times like this. Personally, I believe that taking a loan to finance the purchase of a car is a wise decision because a car is a necessity that we all need to live a pleasurable and easy life. Taking a car loan to finance the purchase of a car is quite easy; however, it is repaying or paying back such a car loan that is difficult and challenging. Normally, when you take a car loan, you are expected to repay or payback such a car loan before the stipulated repayment time. Concerning car loan repayment, defaulting in repayment or failing to repay or payback a car loan that you have been granted approval for, could result to legal actions and sanctions being taken against you. When it comes to repaying or paying back a car loan, most people do experience trouble in repaying back a car loan that they have been granted approval for because they are vastly ignorant concerning issues that relates to car loan repayment. When it comes to being able to pay a car loan that you have taken, money is not all that is required. Chances are that if you were smart, you would not have to stress yourself before raising the right amount of money that you need to fund the repayment of a car loan that you have taken. Being able to repay a car loan that you have taken, is all about knowing and making good use of the repayment options or instruments of repayment that you have at your disposal. Below are some methods that you can use in repaying a car loan that you have taken:Take up a Refinance Loan – When you are faced with the challenge of repaying a car loan that you have taken, your best bet and surest way out of the rot, is to apply for a refinance car loan. A refinance car loan is a kind of car loan that you can take up to source for the funds that you need to repay what you owe as car loan. An Insurance Policy – Besides taking up a refinance loan, you can also take up an insurance policy to cover you against a situation or scenario where you would be unable to repay or payback what you owe as car loan.

Annuity Reverse Mortgage Assists People in Leading Secured Life

Filed under: Mortgage — Tags: , , , , , , , — admin @ 12:47 am

There are reverse mortgages and there is one annuity reverse mortgage. Often people get confused with both of them. Well, for your information, this kind of reverse mortgage lets the senior citizens or the borrowers to procure good money against the equity in homes. So do not wait and apply for this loan as soon as possible for a secured life.

Annuity reverse mortgage is unlike its counterpart and is gaining popularity amongst investors. Moreover, it provides maximum results that the borrower is seeking and expecting. The advantage attached to this type of reverse mortgage is that the balance of loan decreases with the time. This happens due to borrower’s ability to pay back the loan on right time. In fact, the borrower gets money for the equity against his house. However, one should not mingle an annuity reverse mortgage with a home equity loan. In fact, this loan is also different from equity line of credit. Well, if the borrower follows either of these two, then he or she can pay the monthly interest or the amount that has been drawn from equity line by him or her. In regular reverse mortgages the borrowers do not have to pay anything until the loan is paid off. In fact, there are many kinds of annuity reverse mortgages in the offing by the federal and regulatory authorities in the United States.

Well, these mortgages are less expensive in comparison to conventional type of mortgages. However, an annuity reverse mortgage is perfect choice for person expecting more benefits through this policy. One can receive an amount in a form of lump sum or equated monthly installments. Thus, do not wait any more and make your life comfortable with an annuity reverse mortgage. These annuity reverse mortgages are commonly referred as single purpose reverse mortgages. However, there are some restrictions attached to an annuity reverse mortgage like how the money will be distributed or used by the customer. Federally insured home equity is another annuity mortgage that offers conversion services for the equity of the borrower’s house. It is a bit higher in the interest rate in comparison to other private sector reverse mortgages. The last or the third type is offered by private sector or proprietary reverse annuity mortgage service providers. However, all these annuity mortgages carry charge origination fees along with closing costs also.

If the person looking for this reverse mortgage is still undecided or is confused then he or she must seek assistance from a professional who can help the persons in getting better and secured deals. In fact, people should approach reverse mortgage and get information on the policy and the intricacies involved in an annuity reverse mortgage. This way, they will be able to understand the complexities of this reverse mortgage, so that no on tries to misguide them in future. In fact, just like any other reverse mortgage, an annuity mortgage demands the loan to be paid when the owner dies, or the homeowner sells the home or relocated himself out of the country. However, there are conditions like bankruptcy, fraud and misrepresentation by the applicant can make him ineligible for the loan.

December 27, 2015

The 6 Ways to Pay Off Your Mortgage Early

Filed under: Mortgage — Tags: , , , , — admin @ 12:47 pm

I know, you wish you didn’t have to put that mortgage payment in the mailbox each month.

So what if you could take that mortgage payment and put it into your pocket instead? Well you can and I’ll show you how.

The bottom line is this, if you aren’t trying to pay off your mortgage early or adjust your mortgage payment you’re leaving MEGA-BUCKS on the table.

There are really only 6 ways that you can make a mortgage payment that will help you pay off your mortgage early. Some are good, some are not. It really just depends on your financial situation and how much you’re willing to sacrifice. Regardless of your situation there is ALWAYS a method or two that will work perfectly for you. So here are your options:The 6 Ways To Pay Off Your Mortgage Early:

1 – Take advantage of the ‘mortgage payment loop hole’ that has recently been uncovered (free report below)

2 – Use a biweekly mortgage payment plan (doesn’t seem like much but works well)

3 – Make an additional mortgage payment to the principle each month (3% rule)

4 – Refinance (I know you probably have a million lenders calling you EVERY day about this one) at a lower rate and keep the monthly mortgage payment the same

5 – Make a lump sum mortgage payment to the principle (maybe with a salary bonus you get)

6 – Refinance to a 15 year mortgage (the mortgage payment increases but it gets the job done)

The most important thing to remember about choosing a mortgage payment to pay off your mortgage early is to understand what it will do for you financially in the future, and then to be able to compare that to what the mortgage payment method is doing to you financially right now.

Often, making the decision on which mortgage payment method to use comes down to your family and lifestyle. Ask yourself the following questions before deciding which mortgage payment method makes the most sense for you.

– Do you have a retirement set aside?

– Do you have a college fund for your kids?

– Do you need/want a new car?

– Does your spouse want to go on a vacation?

– HOW MUCH MONEY DO YOU WANT TO SAVE AND HOW BADLY DO YOU WANT TO PAY OFF YOUR MORTGAGE EARLY???

It may seem hard to choose which one of these mortgage payment options will work best for you, but if you’re truly serious about taking control of your financial life it won’t be tough.

This is just an overview of all the mortgage payment methods that pay off a mortgage early, but I’ve written several other articles on these methods that you can look up if you want to go into detail on a certain method.

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