Finance, Loan, Debt and Credit.

January 25, 2018

How a Fixed Rate Mortgage Can be Beneficial When Buying a Home

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If you are just about to buy a house, one of your most important decisions, almost as important as which home you buy, is what type of mortgage to take out. You basically have two choices; a fixed rate mortgage (FRM) or an adjustable rate mortgage (ARM) Choosing a mortgage that best fits your specific needs can potentially either save or cost you a great deal of money over the term of the mortgage. Around 70% of homebuyers today choose a fixed rate mortgage, rather than an adjustable rate mortgage. A fixed rate mortgage is exactly what it sounds like. The interest rate on the loan doesn’t change, regardless of whether interest rates in general go up or down. An adjustable rate mortgage may go up or down, depending on the interest rate at the time. Your decision may be influenced by your overall financial situation, the present state of the economy and the cost of your house.The overall amount that you end up paying for your home can be greatly influenced by even a small change in the interest rate. A lowering of the interest rate by just one point can mean that a homeowner with a 30 year mortgage can enjoy average savings of around $50,000 over the term of their mortgage. An increase in the interest rate of just one or two percent can mean monthly payments that are between $50 and $250 higher, depending on how much you paid for your home. Whether you are taking out a 15 or 30 year mortgage may also influence your decision to take out an adjustable rate or fixed rate mortgage.The biggest benefit of a fixed rate mortgage is the peace of mind that comes with knowing that regardless of how bad the economy is the rate on your mortgage loan won’t increase; neither will your monthly payment amounts. In fact, the terms and conditions of a fixed rate mortgage are protected by law. A fixed rate mortgage is an ideal option for those buyers who just don’t want to take a risk, or consider themselves the cautious type when it comes to finances.Another benefit of a fixed rate mortgage is that it makes it easier for the homeowner to budget the expense. Your mortgage payment is probably your single biggest expense and you always know exactly how much the monthly payment will be. Some buyers believe that this makes it a little bit easier to plan and budget for some of life’s other big expenses. Certain things like college funds and retirement for example. With a fixed rate mortgage, the amount of the monthly payment will only increase if there is an increase in the amount of insurance rates or property taxes.A fixed rate mortgage is not affected by inflation or the cost of living. Supposing you have a monthly mortgage payment of $700; this amount will still be the same after five, ten, and twenty years have gone by. Even though everything else has increased in cost, your mortgage payment will stay the same. One way to offset this is to consider the possibilities in the future. Chances are you could have a more disposable income as time passes. You could be earning a higher salary, but still paying the same every month for your home. If you prefer the safer option of the fixed rate mortgage, one solution would be to take out a fixed rate mortgage and then refinance your loan if and when interest rates are lowered. This approach keeps your options open. If interest rates go down sufficiently to justify the cost of refinancing, you can do just that; if rates stay where they are or go up you will be glad you have the fixed rate mortgage.  Some financial experts advise that it is only worth refinancing if the interest rate will be at least 2% lower than your current rate, although that decision entirely is up to you.Another strategy that can be applied towards either a fixed rate or adjustable mortgage is to pay an extra amount each month towards the principal. By doing this regularly, you can potentially save a large amount in interest charges. It can also make the term of the mortgage shorter and you may be able to own your home sooner. Make sure that you specify that any extra amount that you pay is going towards the principal and not the interest. By doing this, if you have a fixed rate mortgage and the rate is not as low as it could be, you are getting ahead a little bit.Ultimately the decision of whether to take a fixed rate mortgage or an adjustable rate mortgage is yours. Although several factors may influence your decision, one of the biggest questions to ask yourself is how much of a risk you want to take.

Shawn Thomas is a freelance writer who writes about economic issues and financial products pertaining to the mortgage industry such a fixed rate mortgage as well as the lowest mortgage rates.

October 28, 2017

FHA mortgage, FHA Loans for buying a Florida home

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Florida FHA Mortgage Loans

FHA Mortgage Loans for Buying a Florida Home or FHA Mortgage Refinances are Fast and Easy with FHAmortgageFHAloan.com.  FHA home loans allow first time Florida home buyers and current Florida home owners buy a home with less than 3.5% down or FHA home mortgage refinance up to 96.5% of the homes value.

Research FHA home loan programs to help you qualify to buy a Florida home with little money down, learn about FHA home loan qualifications, or get a free FHA home loan prequalification.

FHA home loans have so many advantages and qualifying is easier and less expensive with regulated closing costs of FHA loans protect you. 

Other FHA loan Advantages Include:

Minimal Down Payment and Closing Costs.

Easier Credit Qualifying Guidelines such as:

Easier Debt Ratio & Job Requirement Guidelines such as:

At one point and time many years ago, the FHA loan was the only alternative to local bank financing for home buyers. In the fashion world, there is a saying: Wait long enough, and everything comes back into style. That rule applies just as well to Florida FHA mortgage program. Long-overlooked, the FHA mortgage is becoming popular again with Florida Home Buyers for its low rates and the real security it provides borrowers.

For Florida banks and other mortgage lenders, FHA mortgage loan financing offers the security of a government insured Mortgage. Win/Win! To learn more, call today at 1-800-570-0448 or just use our fast and easy quick application!

Easy Qualification – The FHA loan insures lenders against loss for loans made to properly qualified FHA home loan borrowers. So you’re likely to find FHA mortgage loans with terms that make it easier for you to qualify.

Minimal Downpayment Requirements – FHA mortgages can work with as little as 3% down and those funds can come from a family member, charity, or your employer. Although the FHA loan does not have a zero down mortgage option yet, you will find that your 1st Continental Mortgage loan officer can point you to many Downpayment assistance programs that work well with Florida FHA home loans.

Less than A-1 Credit is Okay – The Florida FHA home loan program exists to expand the pool of home buyers. Even borrowers with prior bankruptcies or mortgage lates get approved every day for FHA mortgages to buy or Refinance homes in Hillsborough County or any of the other Florida counties we serve. The FHA loan program uses credit quality, not credit score!

Lower Cost Over the Life of the Loan – The Florida FHA home loan rates are extraordinarily competitive. FHA’s lower risk to the lender means a better rate for the borrower.

Safeguards for Borrowers Who Get Behind – The Florida FHA loan mortgages also allow the lender more options in helping borrowers who fall behind keep their homes are get current again: special forbearance, workouts, even free mortgage counseling. Further, HUD can allow the lender to take past due payments and move them to the end of the loan and in some instance will actually pay your past due payments for you. Options to save your home you’ll never get from a conventional loan! In an uncertain world, this is another excellent reason for you to get an FHA mortgage.

Options for Manufactured Housing – Under certain conditions, you can even finance a Mobile Home or manufactured home using a Florida FHA mortgage loan. Call 1-800-570-0448 to get pre-approved for a Florida FHA loan for manufactured housing or just use our quick application to learn more!

FHA Loans Are Fully Assumable – When you are ready to sell your home, you can offer buyers FHA financing! All FHA loans can be assumed by qualified buyers.

These are just seven of the many good reasons to apply for an FHA mortgage. Call 1-800-570-0448 to speak with a friendly Florida FHA loan specialist now!

The FHA program has evolved since it started in 1934 and now has options for HUD insured loans that fit a variety of different borrowers and situations.

Although Florida FHA home loans require additional paperwork, the reality is that applying for an FHA mortgage loan in Florida is not much different from applying for conventional financing. In fact, for many borrowers the small amount of extra time turns out to be an exceptional mortgage bargain because they save thousands of dollars over the life of their Florida Mortgage.

At 1st Continental Mortgage, we have been working with the FHA program for many years. We’re experts at assembling the proper paperwork and presenting your loan application to FHA approved lenders diligently and professionally. It’s one of the ways that we have earned our reputation for closing FHA home loans in Florida on-time.

You may be surprised at how flexible sellers are in the current market and how many programs there are that provide Downpayment assistance to applicants for FHA financing to purchase Florida homes, condos, and townhouses. The fact is, seller can pay up to 6% towards your closing costs. This means, no closing costs for you when negotiated during the purchase contract!

The FHA program offers excellent fixed rate options and never a prepayment penalty. If other mortgage lenders are quoting you subprime rates, you owe it to yourself to make the call to 1st Continental Mortgage to compare the costs of getting an FHA home loan for your home purchase. Call 1-800-570-0448 to speak with an FHA mortgage expert before accepting any conventional mortgage quote as the best you can do!

When your 1st Continental Mortgage lender helps you get a streamlined FHA refinance on your existing mortgage loan, he or she will make certain that you meet these conditions:

Although a streamline refinance does not allow you to cash out equity, we have a FHA loan refinance program that is specifically designed for borrowers who want to cash out equity to consolidate debts, make home improvements or to access funds for other purposes.

Unlike many conventional loan programs, the FHA mortgage does not adjust the rate based upon loan to value or credit score. You will find the FHA has very reasonable underwriting guidelines for cash out refinancing.

We have helped many clients borrow up to 85% of the appraised value of their homes and use the funds to consolidate debts or to make home improvements and other purposes. Qualified borrowers will have to look hard to find lower rates and better terms than they can get on Florida FHA cash out refinance right now!

Call 1st Continental Mortgage today at 1-800-570-0448 or use our quick application to apply for an FHA refinance on your home in Sumter County or any of the other Florida counties we offer FHA mortgages in.

FHA 203k Mortgages For Florida Homeowners Making Home Improvements

The FHA 203k loan program is nothing more than a specialized FHA home loan designed to help homeowners make home improvements. It is especially popular in neighborhoods with properties in need of rehabilitation.

The FHA 203k loans work in Florida communities in much the same way as Construction loans for home improvement. Eligible borrowers can use the proceeds from these mortgage to renovate and improve their primary residences.

Qualifying for a 203k FHA mortgage uses the same guidelines as a standard FHA mortgage for the purchase of a Florida home.

Although some conventional lenders in Florida shy away from making a loan on Mobile Homes or manufactured homes, many FHA mortgage loan lenders do not.

In fact, mobile homeowners fortunate enough to connect with a Florida mortgage lender, who is well schooled in how FHA loans work for mobiles and manufactured homes, can get a better interest rate, better terms, and a lower monthly payment by going FHA in nearly every case.

If you’re shopping for financing to buy a mobile or manufactured home on land in Sumter County or any of the other 66 counties in Florida that we serve, call 1-800-570-0448 and let us give you a quote for an FHA mortgage loan to purchase your mobile or manufactured home.

It only takes a few minutes to get an FHA loan mortgage quote on your Florida mobile home. We’ll wager that the savings on your monthly mortgage payments will make it some of the highest paid work you’ve ever done.

Few people realize that the FHA loan uses the same underwriting criteria for single and double wide mobile homes and manufactured housing as it does for traditional site built block or stick homes. In addition, FHA is one of the very few programs that can offer up to 97% financing on mobile homes on land. In addition, did you know that the seller can contribute up 6% toward your closing costs on an FHA mobile home loan and that down payment assistance can be used in Florida? It’s true! You could package your mobile home financing to create a real no money down loan with unbelievably low rates.

Call 1-800-570-0448 or use our secure online quick application for a free no obligation quote on financing your manufactured or mobile home using an FHA mortgage loan.

An FHA streamline refinance is one of the easiest home loans for Mortgage Lenders and borrowers. Since HUD approved you for the original FHA loan, the paperwork to refinance is minimal and the process is simple.

So long as you have made your FL FHA loan mortgage payments on time for the previous 12 months, you can lower your monthly payment if interest rates go down with minimal out of pocket expense. Even if you have been late on your FHA mortgage, you might still qualify for an FHA streamline refinance in Florida under very specific conditions.

Less documentation and no appraisal are just two of the reasons a FHA streamline refinance is cheaper and faster for the borrowers who qualify.

The Department of Housing and Urban Development (HUD) sets forth these guidelines for determining if a mobile or manufactured home qualifies for an FHA mortgage loan in Florida:

If you would like to determine if your mobile or manufactured home meets the guidelines for section 184 financing from FHA, call one of our Florida mortgage pros at 1-800-570-0448. We’ll be glad to help you determine if the property that you are interested in can be used as collateral for an FHA mobile home mortgage.

FHA 203K Mortgages for Florida Fixer upper homes

This specialized FHA mortgage is for Floridians who wish to buy a home that needs repairs or renovations. Just as is the case with a conventional construction loan, a single FHA 203k loan covers both purchase of the Florida real estate and renovation. FHA 203K financing can be used to purchase a property on a site and move it to a new foundation on the mortgaged property and rehabilitate it.

In addition, Florida homeowners can also use a 203k FHA mortgage to refinance existing debt when they finance one or more home improvements using the FHA 203k mortgage program.

Many borrowers are finding out what a good deal a Florida FHA home loan really is. Call 1-800-570-0448 today or simply use our quick application to find out more!

 

September 30, 2017

Technique of Bankruptcy and Refinance Loan for Your Easily Car Buying Procedure

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Bankruptcy Car Loans : Bankruptcy car loans farther help you in your chance to save money by adding a well-written explanation to your credit report file. You have a good enough reason for filing and re-establish your credit report, may prevent you from being able to any creditor who pulls your report. Typically, two years after a bankruptcy, realize that the interest rate you will qualify for with a bankruptcy on how much equity you have filed bankruptcy and become responsible In other factors may make it is your rating, after filing for bankruptcy. Once you have filed bankruptcy, you may need to explain the circumstances That way, the information will be approved for another mortgage loan to refinance your house. These other words, if You can qualify for. In your home and an understanding lender, you may qualify for another mortgage loan before the two year waiting period is that it gives the same track as pre-bankruptcy, you will not receive the loan. That caused you jumped right back on the two year waiting period. When considering refinancing your mortgage after filing bankruptcy, people become eligible for bankruptcy car loans. Thus, it possible for more reasonable rates than you ever thought possible. When you to file. However, if you have been since the bankruptcy event. The older your bankruptcy is, the lower the interest rate you should be readily available to qualify for. The lenders the ability to wait up to two years to qualify for the lowest interest rate you fill out a car loan application, you will be able to see what your choices have learned your lesson and why. If you can also help your financial choices, you will find that they readily offer you a loan for a new vehicle. This depends, of course, on your credit and your income. This is essential that you shop around for The reason for you to be asked If you have in rebuilding your cause by refinancing your home.

July 21, 2016

Buying a home in Vancouver Canada with a mortgage

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Vancouver, British Columbia, Canada is a hot market to buy a property and you could double the value of your property by keeping the property for few years only.  More and more investors from around the world buy property in Vancouver simply because Vancouver is a beautiful city. In the last few years, Vancouver has been the best city to live according to United Nation standard.  If you want calculate quickly how much you could afford housing in Vancouver, please use our mortgage calculator .

For a First Time Home Buyer, mortgage advice and information is not just important, it is critical. Timely and accurate mortgage advice and choosing the right product can be a boon to the enjoyment of your first purchase. There is no reason to rush the purchase of your first home – remember, it is also an investment in you life and lifestyle.

And for a Repeat Buyer, you need to know that your options are extensive. With a changing mortgage marketplace, you need to be kept up to date so that you can make a decision that is tailored to your current situation with the flexibility that you require.

In conclusion, the value of any property in Vancouver will keep increasing, especially after Vancouver 2010 winter Olympic. Location is always important in buying a property and if you could afford to buy a property in Central areas in Vancouver (such as Downtown, Vancouver), you could definitely see the increase of value in just a year. Ronin Mortgage will help you to get a finance to buy any property in Vancouver areas. Please visit our website http://www.roninmortgage.com/

March 17, 2016

Buying a Florida Home or FHA home loans to Refinance is simple with FHA mortgage Programs.com

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January 29, 2016

FHA home loans for Buying a Florida home, ((97%w 540 FICO))

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Florida home buyers should know the many advantages of the FHA mortgage loan programs. FHA loans were created to help increase home ownership. For the Florida home buyer the FHA home loan program can simplify the purchase of buying a  Florida home, making financing easier and less expensive than an other home loan program. Some highlights of the Florida FHA loan program include:

Minimal Down Payment and Closing costs.

Easier Credit Qualifying Guidelines such as:

To take advantage of the FHA program in Florida, give us a call 1-800-570-0448 or use our quick application at www.FHAmortgageFHALoan.com

 

There are lots of good reasons to choose an FHA home loan over other Florida mortgage programs, especially if one or more of the following apply to you:

If any of these things describe you, then an FHA home  loan may be right for you. Why? FHA home loans offer many benefits and a level of security that you won’t find in other loans including:

Low cost: FHA home loans have competitive interest rates because the federal government insures the loans for lenders.

Lower down payment requirements: FHA home loans have a low 3.5% down payment and the money can come from a family member, employer or charitable organization as a gift.

Easier qualification: Because FHA insures your mortgage, FHA mortgage lenders may be more willing to give you FHA home loan terms that make it easier for you to qualify.

Less than perfect credit: You don’t have to have perfect credit to get an FHA home loan. In fact, even if you have had credit problems, such as a bankruptcy, it’s easier for you to qualify for an FHA home loan than any other mortgage program.  

More protection to keep your home: The FHA has been helping people since 1934. Should you encounter hard times after buying your home, the FHA has many options to keep you in your home and avoid foreclosure.

FHA insures loans for lenders against defaults – it does not lend money or set interest rates. For the best interest rate and terms on a mortgage, you should compare mortgages from several different lenders. An FHA-approved lender can help you start the loan application process.

You may use an FHA-insured mortgage to purchase or refinance a new or existing 1- to 4-unit home, a condominium or a manufactured or mobile home (provided it is on a permanent foundation).

Fixed-rate loans – Most FHA home loans are fixed-rate mortgages (loans). The advantage of a fixed-rate mortgage is that your interest rate stays the same during the loan period, so you know exactly how much your monthly payment will be.

Adjustable rate loans – First-time homebuyers can be a little stretched financially. With FHA’s adjustable rate mortgage (ARM), the initial interest rate and monthly payments are low, but these may change during the life of the loan. FHA uses the 1-Year Constant Maturity Treasury Index (CMT) to calculate the changes in interest rates. An index is a measure of interest rate changes that determine how much the interest rate on an ARM will change over time.

The maximum FHA home loan that the interest rate on your FHA home loan may increase or decrease in any one year is 1 or 2 percentage points, depending upon the type of ARM you choose. Over the life of the loan, the maximum interest rate change is 5 or 6 percentage points from the initial rate. The advantage of selecting an ARM is that you may be able to expand your house-hunting value range because your initial interest rate will be low, as will your payment. Click for a more in-depth explanation…

Purchase/Rehabilitation loans – Sometimes you might see a home you’d like to buy, but it needs a lot of work. FHA has a loan for rehabilitating and repairing single-family properties called the SF Rehabilitation Loan program (203k). You can get one loan which combines the mortgage and the cost of repairs. The mortgage amount is based on the projected value of the property with the work completed. The advantage of this loan is that you can buy a home that needs a lot of work, but have only one mortgage payment, and you can complete the repairs after buying the home. Read more about these loans.

Indian Reservations and Other Restricted Lands – A family who purchases a home under this program can apply for financing through an FHA-approved lending institution such as a bank, savings and loan, or a mortgage company. To qualify, the borrower must meet standard FHA credit qualifications. An eligible borrower can receive approximately 97% financing and use a gift for the downpayment. Closing cost can be financed; covered by a gift, grant or secondary financing; or paid by the seller without reduction in value. More… 

Subprime loans are loans designed for homebuyers who don’t have a strong credit history or can’t qualify for a regular or prime loan. Lenders charge a high interest rate on subprime loans because the risk that a homebuyer may not make their payments is high. Because FHA insures the lender against this risk, the interest rates on FHA-insured loans are generally among the lowest in the market. Most subprime loans carry interest rates at least 3 percentage points higher than an FHA-insured loan. On a $100,000 mortgage, the monthly payment for a subprime loan would be over $200 a month higher than an FHA-insured loan.

The majority of subprime loans are also ARMs, where the interest rate can change a lot and greatly increase your monthly payments. Most FHA-insured loans are fixed-rate loans where the mortgage payment always stays the same. If you have an FHA-insured ARM loan, the rate can’t go up by more than one or two points in a year. The fees that lenders charge their borrowers for processing a subprime loan are also generally higher than on an FHA-insured loan.

Most subprime loans carry a heavy prepayment penalty that you must pay if you want to refinance your loan to a lower interest rate. These penalties can cost you hundreds or even thousands of dollars. There is never a prepayment penalty on an FHA-insured loan. You can refinance at any time and not worry about paying any penalties.

Unfortunately, because they don’t know these facts, many homebuyers who could qualify to buy a home with a fixed-rate FHA-insured loan only apply for subprime loans. Check out an FHA-insured loan before settling for a subprime loan!

Conventional loans usually require a larger downpayment than FHA and if you have less than perfect credit you may not qualify for an affordable mortgage with a low interest rate . The best thing to do is compare the cost of the conventional loan to an FHA-insured loan line-by-line. What are the fees for each? What is the interest rate? How much is the mortgage insurance? How much downpayment is required? For some borrowers, a conventional loan may be less expensive. For many others, getting an FHA-insured loan is the way to go.

Yes – as you will with most loans.

The Housing and Economic Recovery Act of 2008 provides for a one-year moratorium on the implementation of FHA’s risk-based premiums beginning October 1, 2008.  Consequently, effective with new FHA case number assignments on or after that date, FHA will no longer base its mortgage insurance premiums on a combination of credit bureau score and loan-to-value ratio.  The new premiums (upfront and annual) to be implemented for all loans for which a case number is assigned on or after October 1, 2008, are described below.  Mortgagee Letter 2008-16 is rescinded in its entirety.  Please note that certain parts of that mortgagee letter are retained and reiterated in the guidance that follows.

UFMIP= Upfront Mortgage Insurance Premiums:  FHA home loans will charge an upfront premium in an amount equal to the following percentages of the mortgage: 

Most home loans require mortgage insurance when your downpayment is less than 20% of the sales price. On conventional and subprime loans, mortgage insurance is provided by private companies. Whether private mortgage insurance is less than, equal to, or more than an FHA-insured loan’s insurance will depend upon the loan program and your qualifications.

Compare the cost of FHA home loan home loan compare  to subprime and conventional types of loans over the life of your loan. Then compare how much each one costs monthly. With the protection and value you get from an FHA home loan you will find it’s a very good deal.

 

 

January 7, 2016

Tax Planning Tips For Canadian Residents Buying Property In US

In view relevant of the provisions, which include the US Canada-US tax treaty of 1995, Canadian residents (not those who fit US resident criteria) buying property in the US must do their tax planning accordingly.
US income tax, estate tax and various other laws treat foreign nationals on different footings depending on whether they have a US resident or non-resident status. US laws lay down certain criteria to ascertain resident/non-resident status.
A citizen of Canada is subjected to two tests to determine his/her residence status for tax purposes.
One- if he holds a US green card he is treated as a lawful permanent US resident. His presence /absence in the US is not considered. And
Two- If he had a substantial presence in the US he is treated as a US resident. This means being present in the US for 183 days in the preceding three years in the following manner.
. If he has been present in the US for at least thirty days during the current calendar year
. If the sum of the number of his US days in the current financial year, 1/3rd of US days in the first preceding year and one sixth of US days in the second preceding year equals or exceeds 183 days.
Factors like inability to leave the US due to ill health or being present as part of a govt. delegation and certain other exceptions are taken into account while calculating the total of 183 days mentioned above. Even when substantial presence is established, meeting certain other additional criteria may still attach a non-resident status to a Canadian citizen.
A US resident alien is treated more or less similarly as a US citizen for tax purposes. He has to file tax returns and pay taxes on income received from all sources in the US and/or anywhere in the world. The resident status entitles him to all the deductions, personal exemptions and other benefits available to US citizens while computing taxable income.
A non-resident on the other hand, subject to certain exceptions, usually has to pay tax on income he receives from US sources only. In addition, his non-resident status and limited tax exposure make much less of exemptions and deductions available to him as compared to his resident counterpart.
When a Canadian resident buys a condo in Florida or other real property located anywhere in the US and rents it out, there is a withholding tax of 30% applicable on the rent. This means that the tenant is liable to withhold 30% of the rent and pay it to the IRS. By filing a US tax return and paying tax on the net rental income, the 30% gross withholding tax can be avoided.
There may be significant expenses such as maintenance; property management expenses, mortgage interest, property taxes etc. that can reduce the taxable amount considerably, and the resulting tax at marginal rates can be substantially lower. Once the net rental system is elected, it usually cannot be revoked. The Canadian property owner needs to provide the tenant with form IRS 4224 to avoid deduction of 30% withholding tax.
When a Canadian resident sells any property that he owns within the US, the Foreign Investment in Real Property Tax Act-1980(FIRPTA) mandates a 10% withholding tax on the gross sale price. However, it is possible to offset this tax against US income tax payable on any capital gain on the sale. A refund can be claimed if the withholding tax is above the tax liability.
This provision is subject to two exceptions.
a) When the property is sold for less than $300000 and the purchaser intends to use it for his principle residence for at least 50% of the time for the next two years he pays the full price to the seller instead of withholding 10% to remit to the IRS.
b) When the seller obtains a withholding certificate from the IRS stating that US tax liability is expected to be less than ten percent of the sale price. The amount of tax to be withheld, if any, would be mentioned on the certificate.
When a Canadian resident breathes his last owning property in the US, federal estate tax is imposed, which can range from 18 to 45% in 2007. Under article XXIX B of the Canada-US tax treaty, unified credit can be applied to reduce or eliminate estate taxes.

October 11, 2015

Used Car Loans – Redefining Car Buying

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Time and convenience are two important words in today’s life. Everyone wants to save more and more time and have as much convenience as possible. When it comes to mobility, whether it is a short one or a long distance one, cars are the clear winners. They save your precious time and make you feel comfortable. But owning a car, that too a brand new is not financially feasible for everyone. The Used Car Loans can help you own a used car which will give you all that you want from a car, and at the same time, being gentle with your wallet.

Terms of Used Car Loans Used car loans are both secured and unsecured. For secured, generally the borrowed car itself is used as security. You can borrow up to 80% of the value of the car. The repayment time frame can be somewhere between 12 to 60 months. Unsecured loan may have an interest rate higher by a fringe

Used car market needs understanding

Without proper knowledge, one may spend more money than he should, when buying a used car. It is important to have a general overview of how one can save money. One should go for a used car that is one or two years old, as it will not only save money but will also ensure that it has almost the same features as the brand new one.

Your advantage with Used Car Loans

Not all people fancy driving a sparkling new car because of its fast depreciation. Used cars are better in this aspect. The Used Car Loans are redefining the concept of car buying. These loans are open for all types of borrowers; irrespective of their credit score. Bad creditors can improve their score with this loan. You get the added advantage of good amount of money, wider repayment period and low interest rate. All these distinct features add flexibility to these loans.

Summary

Used car loans suffice an individual with money if and when he plans to buy a car that has been in use or to simply put a second handed car. These are either secured or unsecured; with the car acting as security (in case of secured form).One can find these loans in plenty either through physical or online lenders.

September 7, 2015

Car Loans for Bad Credit: Follow Your Dream of Buying a Vehicle of Your Own

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Car loans for bad credit are the loans offered in UK to the people suffering from bad credit status. These specially created loans for the borrowers with bad credit score assist them to fulfil their dream.

 

These loans are available in secured and unsecured option. In secured option, borrowers have to pledge collateral against the amount. Due to this, repayment facilities become more convenient and interest rates becomes lower. In unsecured option, interest rate is higher and payment tenure is shorter.

 

The loan amount depends on the market price of the car. Larger amount can be approved, if the borrowers can provide a security. The interest rate secured option is 6 to 11 percent. In unsecured loans, it can rise as high as 14 to 18 percent. The borrowers must keep in mind that in bad credit loans, the interest is always higher than the loans for the borrowers with good credit.

 

The repayment tenure is short as bad credit car loans are short term loans. The repaying period can be anything between 48months and 60months. The borrower should keep in mind in car loans; the vehicle is used as a sort of security by the lenders. That is, the lenders can impound your vehicle if you are not able to pay back the whole amount.

 

Car loans for bad credit are available through online and offline lenders. Online lenders are banks, auto-dealers, financial institutions, brokers and credit unions. Online lenders offer different rates through their websites. The borrowers must try as many lenders as possible before the one best suited for them.

The borrowers must have a credit score below 650 to be regarded as the person with bad credit status. The borrower must be a citizen of UK. The borrower must be 18 and above.

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