Mortgage & Loan Articles |
| Student Loan Refinancing - Choose Your Lender Wisely Posted: 12 Jan 2009 03:12 AM CST Student loan refinancing is the easiest way for anyone to obtain financial relief from the seemingly endless onus of debt build-up; this is especially true to student borrowers who are left to fend by themselves and without the financial assistance from their parents. Loans are a great solution to one's problem of pursuing their college education. However, this dependence on college loans consequently put many students in a bad situation wherein they are not able to pay the monthly payments on time. Late or unpaid installments can have a bad effect on their credit rating - possibly this can be the cause of their future being placed in chaos. There is simply no need for students to experience such undesirable circumstances. When the management of multiple loans seem to go haywire; there is one sound solution - student loan refinancing. It is time to consolidate student loans. What is a consolidation loan? This kind of loan is the merging of all your previous debts and turning them into a new loan. You have to employ a refinancing program in order for you to enjoy financial solution to your burdensome multiple debts. At the same time, once the program is in place, you get to enjoy numerous benefits, including having to deal with a single monthly installment and possibly low interest rates. Student loan refinancing programs are not that hard to employ; in fact, you can refinance your debt quite easily. The first thing that you need to remember is to deal only with legitimate lending companies. Avoid those fraudulent ones as they are just out to make money from you without giving you a hint of assurance that you will receive financial relief in return. You may try learning more about the lending company's reputation by checking on its credentials thru Best Business Bureau. If there is even one complaint lodged against the company, then it's time to have serious doubts on its capacity to provide you with good service. Do not be contented with checking on just one, two or three companies. It is best to study a long list and make a serious study on each one of them. Compare benefits and advantages. Which one has the best student loan refinancing program to offer? This will somehow give assurance that you have exhausted all means to find the lender that's right for your consolidating needs. |
| Debt Management Advice - Systematic Way to Eliminate Debts Posted: 12 Jan 2009 03:12 AM CST It is always suggested by the financial experts to derive financial assistance, as per your need and requirement. If by any means, you have availed more than one loan, it becomes increasingly difficult to settle the debts. With multiple debts, you have to pay multiple payments along with the high interest rates. Even if you earnestly want to get rid of the debts, you may not know from where to start the proceedings. This where you should seek the assistance of debt management advice. Debt management advice is a technique, which is essentially meant to assist you get out of the debt mess. The scheme is integrated with various options such as debt consolidation, credit counseling, budgeting and negotiation, which in turn makes it easy for you to strengthen your financial position. Further, you can seek the assistance of financial experts, who help you by suggesting ways to eliminate the debts completely out from your life. Debt problem crop up when you avail loans from various lenders to execute your various demands. The loans multiply and gets tough for you to make the monthly installments. One more chief reason of debts can be incessant and rampant use of credit cards. Instead of getting panicky, you should initiate the process by evaluating the total amount you owe to the various lenders. This is budgeting and by doing so; you will be able to understand a great deal about the debts. If the amount of debts outstanding towards the debts is quite large, then it is preferable to go for a debt consolidation In this option all your outstanding debts are consolidated and merged in to a single affordable amount, which then can be paid off with the help of a new loan sourced from one of the multiple creditors or from a new one at comparatively low rates. There are various agencies, which can be found over the net offering debt management advice. However, you should make it a point to go through the terms and conditions. Last but not the least, your debt management advice only assists you to get out of the mess. But it depends a lot on you on how to eradicate the debts and whether you are properly following the advice or not. |
| Why is the Pathway to Mortgage Approval Tightening? Posted: 12 Jan 2009 03:12 AM CST The mortgage credit tightening has affect lots of people nationwide. Many people last year decided to finally build their dream home when they were approved for construction financing. Once the credit guidelines tightened by lenders, many lenders who approved loans last year have backed out of their decision leaving the borrower with tough options. The tightening credit market is not just a problem for newbie buyers with bad credit. It is also affecting people who have great credit, reserves and stable employment. For some who did not begin construction, they are lucky. Others who have almost completed their homes are left with a large loan that is coming due while a large portion of lenders will not touch it as a construction to permanent loan. The effect to the homeowner is a major strain on their finances to say the least. The lucky ones do not borrow, the home builder has less of a work log, and the mortgage lender has less business. It is a snowballing effect though. It hurts employment for the sub-contractors, building supply stores, basically the whole industry. A good reason for the banks decision is since the housing industry is in a down market they cannot take on any more risk. Mortgage lending continues to become constricting as financial institutions tighten their guidelines monthly, and sometimes even weekly. Some mortgage brokers who offer much more programs than a bank see their wholesale lenders falling each month. Nowadays submitting a loan is like going into a war zone. The underwriters are always on the attack by searching for areas on the loan application that are unstable. They do not want to find a time bomb since they were burned in the recent past. The typical bank cannot do these loans anymore but solutions are available. There are still a small percentage of companies which can do these mortgages for borrowers at competitive interest rates. Most of the credit crunch's affect has occurred in the condo, second home and investment property areas. Buyers are still able to get conventional mortgage by putting five percent down, if the borrower has a credit score above 680. Moreover, one-hundred percent financing is still available through the VA or rural programs. The rural program may sound misleading but there are many suburban areas with populations of less than 25,000 that qualify. An FHA mortgage only requires three to five-percent down and they allow refinancing up to 95% percent. With the governments rescue plan it is expected that guidelines will be hopefully loosened by early next year. So, it should just be a tough period until next year for homeowners and borrowers who do not fit into certain programs. However, check to see if you qualify for an FHA loan or rural program by contacting a mortgage lender or broker. Related Tags: bad credit, credit score, investment property, mortgage brokers, interest rate |
| Citi Mortgage - Cut Through the Hype and Learn the Truth About Citi Posted: 12 Jan 2009 03:12 AM CST Citi mortgage is a nationwide home mortgage lending company. A lending unit of Citigroup, the company offers mortgages to first time buyers, to individuals who need refinancing, and to senior citizens interested in tapping into the equity of their homes. Headquartered in St. Louis, Missouri, citi mortgage offers several mortgage loan products for borrowers looking forward to buying their first homes and for existing homeowners needing to refinance their homes. The two main citi mortgage products are fixed rate mortgage and adjustable rate mortgage. Fixed rate mortgage offers an unchanging interest rate from beginning to end of loan term. Loan terms this type of mortgage product vary from 10-40 years. Adjustable rate mortgage (ARM) typically has a lower interest rate for a set initial period. When the set period is over, the mortgage loan reverts to the mortgage company's standard variable rate. This means that your monthly payments would then vary with the changes of rates in the mortgage market. Available initial interest rate periods for ARM are: 6 months, 1 year, 3 years, 5 years, 7 years, and 10 years. Interest-only loan is also available from the mortgage company. With interest only loan program, the borrower is required to pay off only the interest of the loan each month. Other products of the company designed to help future and existing homeowners include: construction and renovation loan, refinance loans, equity loans, and FHA and VA loans. FHA and VA loans are the lowest cost loans, and require little or no down payment. Application for a loan can be done through the internet, by phone, and in person. When applying online, make sure that the server you are using is secure. If your loan is approved, the mortgage company will UPS you the terms, conditions, and other documents that you need to sign and send back to citi mortgage. |
| Car Insurance For College Students Posted: 12 Jan 2009 03:12 AM CST Car insurance is required for every driver, no matter their age. Certain groups of people are considered safer drivers and consequently are charged less for insurance. Unfortunately, students do not fall into this group. College students and people under the age of 25 typically are charged quite a bit for insurance. This is because the insurance companies perceive see younger drivers as more high-risk. They get in more accidents, cause more monetary, physical and bodily damage and deaths. Therefore, they are charged higher premiums. The average college student will have to pay somewhere in the neighborhood of $1500 to $4500 a year just for car insurance. Male college students will be forced to pay on the high end of this range. Many college students who are struggling just make their monthly car payments may be tempted to either skimp on insurance or not purchase it at all. This is illegal and is a crapshoot. If that student were to get into any type of wreck (no matter how minor), or if anyone gets hurt while they are driving, they could be in a world of trouble, fast. They may have their license taken away and suspended. They could also end up in jail or sued for the costs of medical treatments. Therefore, it is very important for students to get car insurance even if they are short on cash. While college students have been found to be the group of drivers that pose the highest risk, there are things that students can do to get their insurance rates reduced. These include making sure that they have good grades. Larger insurance companies will offer some sort of discount for students that have a grade-point average of 3.0 or higher. If they make the Dean's list or honor roll, then they can also qualify for lower interest rates. Girls are charged less then boys because males are seen as riskier drivers. Students going to school in a rural area are charged less then students whose schools are in larger cities. Living close to one's job or school can also be a benefit. Students should carefully re-consider buying a sports car. Sports cars are more expensive to insure as are convertibles. Bigger and newer cars are less expensive. Good credit can also lower insurance costs. Students should look for cars that have safety features such as airbags, an alarm and a stability system because this will save them money on insurance as well. Driving carefully is also important. Getting traffic citations or tickets can skyrocket one's insurance rates very quickly and substantially. To secure the best insurance rates, college students should do some comparison shopping. The Internet is a great place to a check out and compare car insurance rates. Students may also want to find an agent because they will likely be able to secure the best deals. Taking a driving or safety course may also may lower insurance premiums. |
| Posted: 12 Jan 2009 03:12 AM CST Amortization of a loan is the division of the amount owing, plus the amount of interest due on the entire loan, into equal sums for the purpose of repayment. When you repay a loan with amortization, you will be paying back some of the interest and some of the principal with each payment. This is different from a balloon loan where you will only pay back the interest to start with and the principal will be repaid at the end of the loan. If you have taken out an amortizing loan which will be repaid with interest, a loan amortization calculator is necessary to work out what your repayments will be over the course of the loan period. There is an equation which will be used to calculate the amount of your monthly (for example) repayments. This is quite a complex equation and not one which you will want to be spending much time sitting down with and trying to understand. This is why it is so much easier to use a loan amortization calculator. With a loan amortization calculator, all you will need to do is input some simple figures relating to the amount of the loan, the length of the repayment period, the frequency of payments and the interest that is being charged. The calculator will then do the rest and give you a reliable indication of your repayments. If your loan will be constructed using a combination of balloon, or bullet, payments and amortization payments, this must also taken into account in the calculation. Some loan amortization calculators are only suitable for a straightforward amortization loan and make no allowances for the use of balloon and amortization repayments being used within the same repayment plan. Some, however, will request balloon information at the outset and will bring this into the equation. If you make enquiries via a search engine and check out some the websites which offer calculators you will probably be able to find some which will give very clear results regarding the repayments that you will have to make to clear the loan. With an amortization loan these repayments will all be an equal sum. They will, however, be made up of a different percentage of principal and interest with each payment. This is where the equation becomes complicated and the calculator becomes a vital tool. At the beginning of the repayment period, a high proportion of your repayment will be going towards the interest. This is because you are paying interest on a higher sum. As the loan progresses, this percentage will become lower and lower and the amount of the percentage of principal which you are repaying will increase. Figures such as these can be clearly shown on a loan amortization calculator and some will even give a diagrammatic graph which will make things even more clear for you. A calculator such as this is an invaluable tool when considering a loan as it will save you a lot of time and energy when it comes to evaluating the repayments and proportions of interest and principal. |
| Online Cash Loans - Your Needs Are Just a Click Away Posted: 12 Jan 2009 03:12 AM CST Availability of a loan is not always guaranteed. But an online cash loan guarantees to provide you monetary assistance every time you are stuck in a financial mess. Online cash loans offer you with double benefit i.e., quick hard cash with convenience through online method. Online cash loans are the cheapest and the best way to tackle the unexpected expense that has cropped up without any prior notice. These loans are a perfect solution for all those people who are seeking urgent cash requirement to fulfill their needs. To attain an online cash loan a borrower is not required to visit a lender personally. All he has to do is fill in an online application form. This form does not charge anything to a borrower and also does not obligate him to accept the loan offer. Through this method, a borrower can easily attain the quotes from various lenders and choose the best offered deal. Online cash loans offer innumerable benefits including- * Fast processing and saves time. * Approved within 24 working hours. * No credit check. * Saves money. * Collateral free and * No need for physical meetings. Cash loans can be used to overcome the financial crisis situations. These loans can be used for various purposes like paying off medical bill, travel expenses, car bill, grocery bill and other utility bills. These loans allow the borrower to apply for an amount ranging from £100 to £500 and can be extended up to £ 1,000. This amount may vary with a number of factors including monthly income, repayment capability and circumstances. These loans are short term loans and have to be repaid within a term of 14 to 18 days. Thus if you want to enjoy all the offerings of an online cash loan you should fulfill certain qualifications like being at least 18 years of age and are able to present your age and income proof. This way you can easily fulfill your needs and bridge the gap between your consecutive paydays. |
| Fast, Convenient Loans For Everyone Posted: 12 Jan 2009 03:12 AM CST The financial pressure can pounce at your happy life at any point of time. To deal with them you need to opt from very limited options if you do not have sufficient funds in your account. The situation may become worse if you have a bad credit history. People might have a preconceived notion that it is hard to get a loan instantly and the chances become zero if there is a bad credit history recorded under one's name. The time has changed a lot. The lenders in UK are now flexible enough to advance funds to the people whose credit rating is not perfect. No credit check loans online are the easiest way to overcome the personal financial problems in ones life. These loans are very easy to apply as the whole procedure is done online. You need to type "no credit check loans online" in the search box of your search engine. Hundreds of website URLs will be there in front of you within seconds. You need to visit all the possible websites and spent some time for research. To find out the best deal in the market you need to compare all the rates and options available, this will save your money in the future. After choosing your lender you need to fill up the online application form with your personal details. Due to the data protection act, your data is kept confidential and never shared with a third party without your prior consent. No credit check is done before sanctioning the funds. So you should not worry even if your credit rating is poor or you do not have a history at all. It takes a few hours for the lenders to take decision and approve the funds. The funds are then transferred to your bank account by the close of the next business day, so that you can withdraw the funds from your ATM whenever required. You may borrow up to £1,500 as cash advance. The repayment options are designed while keeping the borrower's capacity in mind. You may be charged a late fee if you default in repayment on the due date. |
| Secured Loans Online - Fast Access to Cost Effective Loans Posted: 12 Jan 2009 03:12 AM CST Sometimes, financial problems are unavoidable. In spite of all the planning and careful handling of money, unforeseen, last minute expenses may crop up. Unexpected bills, sudden repairs, health bills or education loans - anything could demand immediate attention. At such occasions, you really do not have the time to worry about how the money is going to come in. You need cash, FAST! Staying on top of your finances is not an easy thing to do, particularly during times such as these when finances all over the world are in a sorry state. Often, a salaried individual who does not want to borrow from friends and relatives has only one option - the pawnshop. And we all know how effective THAT is. If you are in a short term cash crunch, one of the easiest and quickest way out would be to get fast cash loans online. Fast cash loans are just what the name suggests: fast loans for small amounts. These loans were first introduced in the 1990's and have been used by thousands of people for various purposes. The advantages of fast cash loans or paycheck loans (as they are sometimes called) are many. First, you can avoid NSF charges of your bank, which are quite costly. No late fee or penalty from your creditor either. You get cash fast, in less than 24 hours, in fact. It is easy to get fast cash loans online. By applying through a reputed online agency, you get many benefits. 1. Secure transactions: Experienced online agencies will make sure that every transaction they handle is 100% secure. So you need not worry about your personal information falling in wrong hands. 2. Immediate disbursal: To apply for fast cash loans online, all you have to do is fill up the application form and the amount gets credited in your account in no time. 3. Repayment options: Most agencies require you to repay within a timeframe of 15-30 days. However, in case you want to extend the period of the loan, you may pay outstanding fee and extend it for another month. Here are a few things you can do to find the best fast cash loans online. Visit a number of reputed online agencies. Note down the APR and other charges including loan fee, interest rate and any other credit costs. Compare these and identify the best loan rates. Read the terms of the company and make sure that there is no fine print. Make sure that you understand the procedure and that you qualify for the loan. Different companies have different requirements when it comes to qualifying for payday loans. Fast cash loans are a smart and easy way to find your footing when unexpected emergencies throw you off balance. These loans give you the much-required breathing space that you need to meet your financial commitments. But, use them wisely and borrow only as much as you can afford to payback. |
| How Non Profit Debt Settlement Works ? Posted: 12 Jan 2009 03:21 AM CST Debt is something which can only creates problem and nothing else. That's why everyone wants to make life debt free as soon as possible. Sometimes it happens that consumers are unaware of debt consequences and also about high interest rate or they know about debt consequences and high interest rates but they have to take debt because of some urgent need. In such cases they have to pay back high monthly payments and it becomes very much difficult for them. At this time they start thinking about non profit debt settlement to pay off all of there debts and reduce there chances of bankruptcy. Non profit debt settlement can only be possible if consumers initiate the debt settlement process them selves. It's very rear and almost impossible that any agency can offer non profit debt settlement. We daily come across many advertisements in over daily routine life and on internet about non profit debt settlement but almost 99 percent of these companies in actual charging initial admin fee as well as monthly fee which can vary between $30 to $60 its not necessary it can be other than that. Mostly companies claim non profit debt settlement and consumers thinks that they are telling the truth but it's not the actual story. They charge the initial admin account opening charges from consumers first monthly payments and start deducting there monthly fee from consumers monthly payments. This is like if they agreed with consumer about $200 monthly payment it in actual $150 monthly payment and $50 there monthly fee. It is an advice for consumers to fully get appropriate information regarding to any company before making any agreement. The best thing in this regard is to contact with any previous consumers who have use the services of that particular company. This is important as it can help consumers in saving good amounts. |
| Three Simple Ways to Eliminate Credit Card Debt Posted: 12 Jan 2009 03:21 AM CST Are you looking for ways to reduce credit card debt? There is nothing in the world that can ruin a good night's sleep faster than having too much credit card debt. If you have been relying heavily on your plastic to maintain a life style that's above your means, you may be running up high credit card debt. One thing you should know is you're not alone. At one time or another, almost everyone finds themselves seeking ways to eliminate credit card debt. The following three ways to eliminate credit card debt can work for just about anyone who has debt. However, they are not easy and you will need a source of income. First, stop using your credit cards right now. Today. This may actually be the hardest thing you will have to do. Using credit cards is habitual. However, if you are going to reduce credit card debt, you cannot continue to tack on purchases to your credit cards. Second, choose one of your cards and stop paying only the minimum. What you should do is choose one credit card and start making the absolute biggest payment you can on it. How do you choose which one? You can pick the one with the highest interest rate. Or if you're into instant gratification, start paying the one with the smallest balance. I prefer the one with the smallest balance because it will take less time to pay it off and I feel like I am actually making a dent in my credit card debt. It is okay to pay the bare minimum on the other cards while you are doing this, but once the first card is paid off, you have to apply the same process to the next card, then the next one, and so on until each card is paid off. Finally, it's time to get aggressive. Find additional income to apply toward your credit card debt. This can be done in many ways such as: 1. Cutting unnecessary spending, 2. Get a second income, or.... 3. Doing both. If you are going to find ways to eliminate credit card debt, you'll have to tackle your credit card balances one card at a time. You'll need to be persistent and you will need to have discipline. Once you get a handle on paying down your credit card debt, it will get easier as you go along. |
| New FHA Loan Program Available Posted: 12 Jan 2009 03:21 AM CST There is a new program by the Federal Housing Administration (FHA) that will insure $300 billion worth of payments of mortgage loans starting October 2008 up to September 2011. This is called the hope for homeowners program, which has already been signed into law. The name is apt to give aid to the financially-ailing homeowners in mortgage. This law allows homeowners to refinance their schemes of up to 90% of the current market value. This gives homeowners the extension to enjoy a low fixed rate loan and a 10% equity share. The law also features tax credit worth $7500 for first-time or new home buyers to encourage more people to get a new home for their own. Provisions also include capping the loan limit amount to $625,000 in high price places. A $4 billion grant is set aside to renovate homes in difficult or dumped areas to do away with the deserted homes that could cause unsightly neighborhood conditions. Also present is a counseling assistance worth $180 million for people whose homes face foreclosure. The HOPE program aims to overhaul the FHA policies designed during the period of depression, thereby giving the US Treasury control of lending money to FHLMC and the FNMA until 2009. The main thesis of the program is to support the declining housing market that drags down the country's economy. The law also gives the flexibility to cut loan balances of up to 40% wherein the 10% equity is already secured. However, there are restrictions and eligibility. First, you should be currently occupying your mortgaged home. You also have to explain that there was no intention of defaulting the current mortgage. Next, mortgage payments should be at least 31% of your gross monthly income. You must also not have another home aside from your current one. Inquire from your loan servicers for additional details. For the FHA recognized lenders, mortgaged homes have to be appraised of up to 90% fair market value. Fees and other penalties must be waived by the FHA-certified lenders noting the financial difficulty of the borrower. New FHA loan borrowers should agree to zero equity loans in the period of five years except for home improvements and maintenance. This law comes as a big help to people who are hit hard by the economic turmoil that spun in the US housing sector, although the program is not isolated to this condition alone. As much as this gives reprieve to the red flag, there are still constraints to consider making this work on the part of the borrower and the lender; considering there are over a million target participants. For those who want to determine their eligibility for FHA assistance, just contact your nearest HUD-certified counseling outfit at the HUD or you can call up the office of FHA. |
| Loans For Unemployed - Meant For Jobless People Posted: 12 Jan 2009 03:12 AM CST Education is the most important thing of a person's life. The future of any person depends on their education but in the present time the education is not an easy task for students, there are many hurdles come in their way of student life one of them is funds. Not any else, but they can solve their financial problem through this editorial. By understanding the difficulty of such people the lender introduce a unique loan that is especially for them who are unable to provide their earning proof to lending organizations. These loans are the best tool for the students as well as for unemployed. These loans can help out the people to get liberate from all their financial stress. The amount that the unemployed or student applicant receive through this loan can cover many demands of cash as like paying tuition fees, purchasing books or computer, boarding fees, conveyance of student or unemployed and many more. Loans For Unemployed is very beneficial for an applicant, even for bad creditors and for the person who is unable to grant any security of not in favor of loan amount. The sum of money that the applicant can collect through this sort of loan hinge on this fact that the applicant applies for a Secured loan or Unsecured loan Secured and Unsecured loan are two sorts of Loans For Unemployed. The Unsecured loan is the loan for which the applicant does not have to pawn something to the lender against the loan amount and on foundation of their collateral the applicant can attain up to $75,000 or more. Other than if the applicant has some non-payment or bankruptcy and they can not afford any thing as security of the loan they can also submit an application form for the amount ranges from $1,000 to $25,000. The repayment duration of secured loan ranges between 10 to 25 years while of unsecured loan is from 5 to 10 years. But before applying for loan the applicant has to make it sure that the amount for that they submit the application, can repay easily on the decided time because if they can not repay the loan to the lenders in any circumstance, some more additional charges will be charged by the lenders over the principal amount and the interest rate of the loan as late fees. |
| 6 Tips to obtain a Loan Modification without getting ripped off ! Posted: 12 Jan 2009 03:12 AM CST With millions of people facing foreclosure on their homes and other real estate, and the government seemingly powerless to make the situation better anytime soon, it's no wonder that lenders and homeowners alike are looking for other solutions. Everybody loses during a foreclosure. Not just the lender and homeowner, but neighbors who watch their values affected, cities who lose tax revenues, businesses who lose customers, and on and on. The best solution is to keep people in the homes. But at what expense to everyone else, and how do you make it quick and painless? That is the point of loan modifications. Loan modifications are nothing new, and have been done ever since the beginning of real estate financing. A loan modification is simply taking the existing agreement, and modifying it to the satisfaction of both parties. The loan modification can be anything under the sun - including changing the payment, terms, interest rate, forgiving some of the payments, moving them to the back end of the loan, increasing the loan amount - or even getting rid of some of the loan itself! Loan modification companies have sprung up all over the country, and homeowners facing foreclosure are especially vulnerable to some of their high-pressure tactics. If you are facing foreclosure, having a hard time making your payments or are upside-down in the value of your home, a loan modification could be for you. Before you consider hiring someone to help you though, here are some tips for tackling the loan modification process yourself: 1. Call the lender or servicer directly FIRST. Many lenders now have departments and specially trained personnel to handle loan modification requests. Some properties and borrowers have even been pre-approved for a loan modification request in advance! One such company doing this is the government-controlled IndyMac Bank. Regardless of who your lender is, call the number on your loan statement and ask for the loan modification department. If they say there isn't one, ask for the loss mitigation department, and they'll guide you from there. The 800# "customer service" department is trained to say "no", so don't be alarmed when they say they don't know what you're talking about, or that they don't do loan modifications. They most certainly do! 2. Do not pay someone in advance for loan modification services. This is a process you can do yourself with a little bit of time and effort. You do NOT need to hire someone to represent you for a loan modification, although at certain times you might want to consult your attorney to be sure you understand the details of the loan modification offer. Most companies claiming to be loan modification specialists are out-of-work loan officers or worse, and are not qualified to represent your interests. Certain states such as Colorado have recently passed legislation prohibiting unlicensed persons from performing loan modifications. 3. Make sure they are licensed. If you do end up working with a loan modification company or specialist, make sure they are licensed in your state. Even if it is not required, this is good practice to insure that you're getting someone that at least has some knowledge and experience regarding the real estate and mortgage industry. Check their license with the state, investigate their record with the Better Business Bureau, and ask for references. It's easy for someone to come up with a fancy looking business card and slick forms claiming to be a specialist on loan modifications and foreclosures. 4. Get an appraisal. Values in most areas of the country have dropped. You know it, I know it and more importantly the lender knows it. Before they agree to a loan modification, they will want to know what the true current value of your property is. Be prepared by getting a fee appraisal done through a locally licensed and certified appraiser. Find one by contacting a local lender or checking an online directory. Even though it will cost a couple of hundred bucks, it will be necessary and useful for negotiating with the lender. Try to find an appraiser that is FHA approved to make sure it's a quality appraisal that the lender will take seriously in evaluating your loan modification request. 5. Threaten foreclosure or bankruptcy. You will need to be prepared to play hardball. The lender wants as much of their money as they can get, and they know that a loan modification means that they will be losing some of it. You need to show the other options are worse. If you continue down the current path, and do not get a loan modification in place, you're probably looking at foreclosure. Under a foreclosure, the bank loses even more money. When you mention that one of your other alternatives is simply dragging out a foreclosure for a year, they may become much more interested in a loan modification agreement. Bankruptcy scares the hell out them just as well! They know that not only do they lose money through a bankruptcy procedure, but that Congress is poised to authorize bankruptcy judges to perform loan modifications anyway! It's much cheaper for them just to approve a loan modification in advance and try that first. 6. Go LOW. Ask for the sun and be grateful when you get the moon! When it comes to loan modifications, almost anything goes. There are certainly guidelines, especially when it comes to FHA, VA or other government loans, but you'll never get if you don't ask. When asking for a lower rate or a lower payment as part of your loan modification, go low and expect them to come back with a counter-offer. You need to take control and tell THEM what you can do, and then make sure that you can live with the new terms. If you want them to lower the loan amount, ask for a $20,000 reduction, then gladly settle when they offer $15,000. If you start at $10,000, they'll never just hand you an additional $5000 for fun. When it comes to the terms of the loan modification, always start low in your initial request. Loan modifications can be performed very quickly and painlessly in terms of time and costs involved. A loan modification can save you thousands of dollars up front and over the long term, and save the bank or lender money as well. But you only get one crack at the deal. Be realistic with your finances and what you can afford to pay. Be prepared to plead your case complete with paycheck stubs (or unemployment filings), bank statements, credit reports, copies of past due bills, medical receipts - anything that will support your case that you need help now before it becomes worse. You can do this on your own, and don't need to pay someone thousands of dollars to execute a loan modification agreement. The sooner you get started, the easier it will be, and the more time you can spend on getting the other problems in your financial world fixed. Loan modifications are common, so if you're in a pinch, don't be bashful - pick up the phone and negotiate! |
| Interesting Facts About Senior Settlement Posted: 12 Jan 2009 03:12 AM CST Senior settlement is the most popular way where senior citizens could sell not needed life insurance polices. There might be number of reasons on why senior citizen policy holder may desire to sell. The person perhaps no longer be able to maintain up with the premium of policy, or he perhaps desire to free up some amount for any other investments plan. The cash that is received from the senior settlement could be used for many purposes such as pay off remaining dues or hospital bills. This kind of life insurance settlement would be usually less than the death benefit, however more than the cash surrender value. An individual benefit is your most excellent source for switching the life insurance policy into cash today. Earlier the only method people can cash in retirement coverage was to give at their surrender value. Another way was to let the policy lapse completely. Both the options are unfeasible and meant the policyholder to suffer loss on the settlement policy. Senior settlement permits the insurance policy to be sold at a price higher than the surrender value when it is sold. Any senior citizen is free to sell their policy to the third party, who would then become liable for further premiums on the insurance policy. Such citizen would then receive cash from their life settlement insurance company. The course of senior settlement is turning to be great popular method to free up cash amount. This cash could be used in many good ways to settle medical expenses or take care after retirement. It might as well be to put towards other insurance policies, which are a more feasible financial option. Life Settlement should be considered when: * Life insurance premiums get too high to continue * Re-assessing your estate planning * There is a small or big change in your health state * The policy might be imminent a lapse * Considering purchasing new health coverage, such as Long Term Care coverage Additionally there are other conditions to be measured in senior settlement course. The policyholder should be 65 years old. He should further have a life expectancy of less than 15 years, and the insurance must be worth at least 100,000 US dollars. It is also advisable to have some interested buyers when getting senior settlement process. This would gain the seller a benefit in getting the top price for the policy. You will come across many financial organizations, which focus on senior settlements and could counsel you on the most excellent method to go about a senior settlement. It is part of the procedure of life settlement companies, which deal with the financial set ups of fatally ill patients. With all financial transactions, ensure you gain independent counsel and could find a trustworthy organization. The greatest way to do this is typically through word of mouth referral from relatives or friends. |
| Auto loans: 4 money-saving tips Posted: 12 Jan 2009 03:12 AM CST Few of us have the means to write a check for the full amount of a new - or even used - vehicle. Unfortunately, car buyers, treating financing as an afterthought in the car buying transaction, can easily waste thousands of dollars. Here are some tips on what to do and what to avoid. Know your incentives Web sites like Edmunds.com (which provides automotive data for CNN's Web sites) list available incentives in your area. Often there are low-interest, or even zero-percent, financing deals you might qualify for. Don't assume you need perfect credit. Ford Motor Co. (Charts), for example, has recently opened up its zero-percent financing incentive to buyers with a few potholes in their credit history. Don't go in empty-handed It's true that a car company's "captive finance arm," - for example, Ford Motor Credit or Toyota Motor Credit - will probably be able to offer you a better financing deal than an outside bank or credit union. After all, it's their job to help you buy one of their parent company's products. But that's not automatic. It can't hurt to make them work a little for your business by researching the cheapest financing you can get before you go to the dealership. A credit union or an organization like AAA or USAA can sometimes offer you access to rates you couldn't get at a regular bank. Companies like Capital One Auto Finance will even allow you to bring a check to the dealership without having to agree to take the loan. The loan doesn't start until you write the check, which can be up to a pre-approved amount. Until then, all you've done is arranged competitive financing. You can still take it or leave it. Just don't forget that interest rates are negotiable. If you arrange financing at a car dealership, part of that interest goes to the dealership itself. The dealership's business manager also has an incentive to work with you to earn your business. Don't get stretched Before you go car shopping, you have to know how much car you can afford. That means you need to know how much of a down payment you can make, how much you're likely to get for your current car and how much your monthly payments will be. It's tempting to just let the dealership work it all out for you. In that scenario, you tell the salesman what kind of monthly payment you're looking for and show them your trade-in. They'll tell you whether you should stick with the entry-level model or if you can move up a step or two. And you'll probably be pleasantly surprised that you can drive a much nicer car than you thought for monthly payments that fit your budget. Yes, the loan stretches out for six years but... look at this car! Feel those seats. Listen to that big, strong V8. Come on, if you can afford it each month, who cares how long the loan is? Well, obviously, another year or two of payments means thousands of extra dollars out of your pocket. It's just being removed more gently. Then there's another problem you might find out about years later. The longer your car loan is, the longer you'll be "upside down" in your car payments. In other words, a longer loan extends the period during which you'll owe more on the car than the car is worth. So figure out your payment situation and know what you can afford before you start shopping. Do your own math Once the deal's all figured out, there's one simple step a lot of people forget to take. Get out your pocket calculator and figure out how much that car is really costing you. Just multiply your monthly payment by the number of payments you'll be making. Then add on your down payment and the value of your trade-in. If you were fortunate enough to qualify for zero-percent financing, there shouldn't be any surprises. If you're paying interest, especially if you've taken out a long-term loan, you might be shocked by how much that car is costing you. For example, a six year loan at 7.9 percent on a $35,000 car would cost you almost $10,000 more than the same vehicle if you were paying no interest, according to Edmunds.com. Then you can decide if that car is really worth almost $45,000. |
| How to Calculate an Early Mortgage Payoff Posted: 12 Jan 2009 03:12 AM CST At your mortgage closing, once you sign on the dotted line you have made a commitment for a long time; usually 30 years. Today, the commitment is often even longer because the 40 year mortgage is now becoming popular. When you look to see how much principal you have paid by the end of your mortgage, it usually brings a certain amount of awe and a lot of disgust. The total amount paid on your mortgage over the course of 30 years is often more than twice as much as the original loan. For instance, on a $200,000 mortgage at 7% for 30 years, the total amount paid at the end of the mortgage is $479,000. So, it is normal for you to attempt saving some of those extra $270,000 you are paying. In this article, we're going to see just how to save a good chunk of this money by paying off your mortgage early. Divide Your Principal By Months Left To Pay Without having a special payoff mortgage early type of calculator it is possible to get an idea what results paying extra principal with your payments will have on the overall cost of your mortgage. Start by dividing the principal you owe on your mortgage by the number of months left to pay the mortgage. If your mortgage is the same as the one above where the principal is $200,000, at 7 % interest and the term is 30 years, you would divide $200,000 by 360. 360 is a number of payments paid over the course of 30 years. The answer is $555.56. This is the average principal of each payment. So it stands to reason, if you pay an extra $555.56 each month, you would pay off your mortgage in half the time. However there's a catch, and it's a good catch. Extra Payments Compound Just as any interest-bearing investment or loan has a compounding affect, so does an extra principal payment on a mortgage. Because of compounding, instead of paying off your 30 year mortgage in 15 years by adding $555.56 to each payment, you'll actually pay off your mortgage even sooner. In the case of this example, it will be paid off in 13 years and 10 months. Most Bang For Your Buck A lot of families find it difficult to come up with an extra $500 to $600 every month. Usually after just closing on a new home, the family budget is tapped out. Still, you could pay a mortgage much sooner than the full term by adding a little extra to each monthly payment. Actually, if you could add only one-quarter of this $555.56 payment, you would be paying an extra $138.88 every month. This $138.88 each month would have your mortgage paid in full in 22 years and 8 months. Though paying the $555.56 monthly amount will shave more than 16 years off the term of the mortgage, paying $138.88 will shave off over seven years, or almost half this amount of time. So, you actually get more bang for your buck by paying the smaller amount! Other Ways To Accelerate Your Mortgage Payoff There are other ways you can achieve an early mortgage payoff. These ways are ingenious and somewhat difficult to learn. They involve learning about using other types of loans you pay before they are due. In other words, though they can sometimes be a little complicated, they are effective. Still, as you can see, simply paying a little more each month goes a long way toward paying your mortgage ahead of time and saving you 10's of thousands of dollars. |
| Best Auto Refinance Loan - Trustworthy Car Loan Refinancing Provider Posted: 12 Jan 2009 03:12 AM CST What would be the advantage to refinancing your car loan? Analyzing the present economic picture, it is obvious that consumers from around the country need quick debt assistance or some way to get their finances in hand. When you refinance your car loan, you get the advantage of a lower payment each month, which in turn gives you money to pay your other debts, like your credit cards or mortgage for instance. Say you have an existing car loan but want to avail yourself of a new lower interest rate, plus you would like a new longer payment plan; you should definitely look into getting a loan with a direct car refinance lender. By working with an auto refinance loan direct lender, you get incredible savings simply because you avoid paying any commissions, never mind that these institutions offer some of the lowest rates available. Furthermore, if you are looking for approval fast, consider that a direct auto refinance loan lender can usually get approval the same day you apply so that you can have your check in hand the next day. Another unbelievable advantage is that it is not uncommon for a trusted direct auto loan lender to direct you to someone on their preferred dealer list so you hunt for a new car with your loan and paperwork in hand and drive out of the dealership with your new car, letting you take advantage of the special offers and maybe even a better deal as well. Last but not least, direct auto loan lenders are registered and certified, so they can be researched through the Better Business Bureau, ensuring that you will be working with an honest and trustworthy car loan refinancing provider. Summing up, by researching and comparing different lenders for your auto loan or auto refinance loan, you will be able to determine, the cheaper interest rate offered, plus the one able to fund cash money as soon as reasonable possible and where you get approved regardless of your credit. However, it is advisable going with a trusted and reputable direct auto loan lender, this way you will save time through an online application and money by getting a lower interest rate. Hopefully you will have your new or used car by tomorrow. Type rest of the post here |
| Tips to Find a Bad Credit Mortgage Refinance Loan Posted: 12 Jan 2009 03:12 AM CST Even without a good credit, you can get a loan online easily. But knowing which one to choose can be rather difficult, so here are a few tips to help you to choose a good one and avoid the bad. If you are looking for a regular loan, then take a little time to know how to choose a valuable one. Getting the wrong kind can result in a lot more cost to you. Know the different types of mortgage refinance lenders and the different types of mortgage refinance products that are available. Besides this, you will want to look at what types of loans are available for those who want to refinance. You may also want to read up on why the newer loans may not be the best thing for you - or maybe they are, in your case. Also, look at your credit report and make sure it is in good order before you apply. These often contain mistakes, many times simple ones, but it will raise your interest rates or could even prevent you from getting a loan at all. Negotiate the mortgage refinance loan that suits your needs. Many times the compensation a lender makes on refinancing a mortgage is dependent on the terms of the mortgage so it is up to you to make sure that the loan received is the most advantageous for you. The market for refinancing mortgages has become so crowded and competitive that it is fairly easy to find several lenders to compare. You might use a broker. The newspaper and the yellow pages are also good places to start. If you are comfortable negotiating the Internet, it is an excellent resource. There are many services online which will perform a preliminary search for a lender. Your current mortgage lender should also be included in this group. There are also bad credit mortgage companies that provide mortgages to people in special circumstances. Before you actually accept any loan and sign on the line for it, you want to take one more step. If you are not familiar with the name of the company, then you will want to do a little research. |
| Tips to Avoid Home Foreclosure Posted: 12 Jan 2009 03:12 AM CST In United States, numerous people are not able to make monthly mortgage payments on consistent basis. The existing mortgage balance or credit card bills starts piling up which indicates the foreclosure process. Everything seems to be going negative for the debtors as the losing their dream home proves to be very traumatic to them. They just watch their dream home slipping away from their hands. After the default payments made by the home owners on their mortgage, banks starts the vicious process of foreclosing the property of the debtors in order to recover the existing loan amount. There are certain tips, which need to be considered by the debtors in order to stop bank foreclosure
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| 3 Tips to Improve Your Credit Score Posted: 12 Jan 2009 03:12 AM CST If you have ever wondered if your credit score makes a difference, in day to day credit situations, the answer is a resounding... yes. In fact, the lower your credit score the harder it will be for you to obtain any type of credit. However, it is not impossible as long as you are willing to pay the price. The price you pay is the percentage of interest your loan or credit card will carry. Since financial institutions are in the business of making money, most don't think twice about issuing credit cards to individuals who have been deemed a 'high credit risk'. To say this practice is big business is putting it lightly. Currently, the average credit score is 720. As a rule, if your score falls under 600 you will probably pay more in interest than someone with a higher rating. Several factors are used to determine your credit score. They include: payment history, total debt owed, length of credit history, types of credit used and new credit. The best thing you can do to improve your credit score is to pay your bills on time. As noted above, this is the most important criteria when it comes to determining your rating. It is also important to keep your balances as low as possible. This will go a long way in improving your credit score. Why? When your credit cards are almost 'maxed out' you are considered a higher risk, because this shows you probably have a need to reach for a credit card, instead of paying with cash. Just because you currently have bad credit doesn't mean that it cannot be improved upon. There are steps you can take to 'fix' the situation. Unfortunately, this process won't happen overnight. Depending on the extent of your ailing credit it will take months, sometimes even years, until you are fortunate enough to have good credit. Look at it this way, it probably took quite a while for your credit to deteriorate... you can't expect the bad stuff to disappear in just a matter of weeks. Step number one. Obtain copies of the credit reports. You will need one from each of the three major credit bureaus... Equifax, Experian and Trans Union. There are two ways to get your credit reports, at no cost. Every individual in the US is entitled to one free credit report per year, per credit bureau. If you have already taken advantage of this offer, apply for a credit card. Obviously you won't be approved because of your credit rating, but the denial will entitle you to a free report. Step number two. Determine a budget. This will give you some idea as to how much extra income you have that can be put toward your outstanding bills. It is always best to pay off higher interest credit cards first... even if the same amount of money will pay off two lower interest cards. You will end up saving money, in the long run. Step number three. Change your shopping habits. Chances are impulse buying is what got you into debt in the first place. If you can curb the problem, it will make it easier to achieve creditworthiness in the future. Follow these tips and you can repair your credit rating yourself. |
| How To Handle Student Debt Consolidation Loan Posted: 12 Jan 2009 03:12 AM CST While studying students can incur lot of debts because of expenses like tuition fees, accommodation, books etc. And, along that they don't have any income source to pay off all these expenses, as a result their debts start increasing and becomes unmanageable. In such situation, the best way to handle those unmanageable debts is availing student debt consolidation loan. Student debt consolidation loan has been specially designed to overcome the debt problem being faced by the students. By means of student debt consolidation loan, the student transforms his multiple debts into a single debt. In other words, multiple debts of the student are paid by the lender and student is left with an obligation to make single monthly payment to the lender. It also lowers the burden of debt payment. Fortunately, along with money, student can also save their precious time by applying for student debt consolidation loan through online mode. Students also save an amount of money by availing student debt consolidation loan. This happens because of two reasons that are: • Student debt consolidation loan carries low interest rate. • Negotiation results in reduction in the amount of debt payment. It is advisable that student should not accept any offer without comparing it with other offer being made. Comparing will help him (student) to determine the competitive deal. Interest rate, other overhead cost, term and condition should be taken into account while making comparison. Each and every clause of the loan agreement must be considered thoroughly as single unfavorable term can create problem in making timely repayments. Therefore, student debt consolidation loan has made it possible for a student to lead a debt free. |
| How to Negotiate a Short Sale Yourself to Save Your Credit Posted: 12 Jan 2009 03:12 AM CST The first step is to 'buy' yourself as much time as possible. If you have already been 'served papers', or given notice that your lender is going to initiate a foreclosure, you must respond to the 'summons' with a written response stating that you don't agree with the lender's position to do so. This will slow the legal processing of the case. If you are not already behind by 3 payments, you will need to do this at some point unless you can complete this entire process before that happens. The next step is to contact the lender to confirm that they will consider a short sale. (Not all lenders will accept a short sale all of the time). Find out what information the lender needs to begin the process and prepare it for submission. Most lenders will not consider a short sale until you have a buyer for your house; others will require you to have your house on the market for 90 days before considering a short sale. List your house and wait 90 days if necessary or find a buyer that is interested in buying your home. This may include holding open houses, listing with a good realtor, putting ads in the local paper or online. Prepare a written offer to submit to your lender. You will also need to contact a title company to prepare a HUD, or settlement statement, that clearly outlines how much money the lender will net in the sale and show exactly where any other money is going. Fax requested paperwork to lender (contract and/or listing agreement is needed) and call to confirm that they received it (best to be done two days later to allow time for uploading to their systems). Follow up with lender at least once per week to get the status of your file. This step will need to be repeated until you have been assigned a 'loss mitigator' or 'negotiator' and they have agreed to do a "BPO", or appraisal of the property in its current condition based on current market value. (Be adament about them ordering an 'interior BPO'. Without it you will not likely get the discount needed to sell your house). At this point you will have to wait for the bank to make a decision of whether or not the offer is satisfactory. They are going to try to get as much money as possible, so expect to act as the middle man during the negotiation process. |
| ACS Student Loans - Less Stress and Save Money Posted: 12 Jan 2009 03:12 AM CST College students throughout the country are constantly wondering how they should go about paying for college with their limited funds. Paying for college can be extremely difficult as it is, but when you take into account the rising prices of an education the question is even more difficult. This process can be tough; however ACS student loans are there to help those in need. Through the utilization of advance storage technology, ACS has become one of the top business outsourcing companies around. US government agencies, businesses, and other organizations are the clients that this fortune 500 company deals with primarily. The US government has chosen give ACS a contract to manage a portion of the federal student loan program due to their expertise in the field of data storage and retrieval. Even though education prices have goon through the roof lately, students can feel a little more secure knowing ACS is here to help. What steps must a student follow to obtain a loan? This question is one that many students have difficulties answering. Answering this question is made easier when ACS is involved. The only that that a soon-to-be student needs to worry about is completing the applying online at ACS and of course filling out their Free Application for Federal Student Aid (FAFSA). The process doesn't get any more clear- cut than this. Things only get easier with ACS from this point on. The superior technology at ACS works out the rest. ACS's services are completely electronic unlike comparable loan services. The speed and convenience of technology is a major advantage. There is no need to ever leave your desk with features like Express pay, Online Servicing, and Online Payment right at your fingertips. Problems are virtually nonexistent. The consolidation process is just as easy at ACS. Cost, frequency, and difficulty of payments are severely reduced. Forbearance plans are also available to help defer payments. These plans allow you to exclude payments for any month you desire with no consequences. Forbearance plans are made easily with a brief phone call. With the student in mind, ACS has also chosen to provide services to colleges. Institutions can outsource a large amount of their data to ACS to help reduce the workload on the faculty. This frees up valuable time that can be spent improving the quality of education for the students looking to achieve success and brighter future. |
| 10 Essential Tips For Student Borrowing Posted: 12 Jan 2009 03:12 AM CST If you are currently looking for a student loan then here are 10 things which you need to think about carefully before committing yourself to a loan: 1. Begin your search by looking at the award letter for your course and calculate just which need based loans you can apply for and how much money these loans would give you. 2. Next, look at your full financial picture including such things as education costs, the provision of any grant or scholarship money and money being provided by your family and determine how much money you need to borrow. 3. Never borrow more than you need. Regardless of how much money a lender offer you, do not borrow more than you need to meet your short and medium term needs. 4. Look at working as an alternative, or supplement, to borrowing. While working at a job while you are attending college might seem like an additional burden it could well be far better than struggling with high repayments on your loans after college. 5. Apply for a student loan as soon as you can. You want to make sure that you get the loan you need and that your money is in place before your bills start arriving, so do not hang around once you know how much you need to borrow and go ahead and get your application in without delay. 6. Make sure that you follow the instruction on any loan application as mistakes could well lead to your application being turned down or to a delay in the receipt of funds. 7. If you are applying for Stafford or Direct student loans then do not be surprised if the amount that is paid to the college is less than the amount you signed for because a fee of up to four percent will be deducted from your loan. This deduction will be made before the check is sent to your college. 8. Once you have taken your first student loan you should begin to keep a track of your borrowing so that you know just what your monthly repayments will be in the future. It is all too easy to be lulled into a false sense of security while you are at college and not making repayments, but you might well be in for a shock once you have left college and have to start making monthly repayments. You will find a number of student loan calculators available which will handle the complicated mathematics for you. 9. If, having taken on the maximum amount of federal loan debt, you find that you need to take out further loans from a private lender then you need to seek professional advice before starting your search for that additional funding. 10. If you find yourself taking on private loan funding then you must carefully rework your college budget to take account of the servicing of such additional loans while you are attending college. |
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