How do I know what is the best Second Mortgage Home Loan for me?
December 31, 2007
The information in your credit history helps mortgage lenders decide how much credit and what interest rate you are eligible for, and then match it to a bad credit home loan. The better your credit history, the more likely you are to qualify for the best credit deals. The first step is to understand if you are considered a credit risk. Most lenders will consider you a higher credit risk only if your credit report states that you have more late and slow payments than what is shown below:
Revolving credit (i.e. credit cards): No payments 60 days or more past due and no more than two payments 30 days past due.
Installment credit (i.e. car loans): No payments 60 days or more past due and no more than one payment 30 days past due.
Housing debt (i.e. mortgages and rent): No payments past due. This can be proven by providing (borrower’s) canceled checks for the past 12 months or a loan payment history from the mortgage service.
Are You Ready for Your Students Student Loans?
December 31, 2007
Your son or daughter is a high school senior and your worried about the coming year, and more importantly, the coming student loans? College has become so important in your children’s future that parents have begun to plan for it at their child’s birth. But, not all of us, as new parents thought that far ahead or could afford too. So, now what? Student loans, whether they are federal loans or not, are options to considered, but to understand first.
Many students that enter college need financial aid. College financial aid provides for instruction as well as the costs of books. But, usually, it does not provide for living arrangements or meals. These are added expenses most of the time.
Federal financial aid or Federal student loans are very common choices for college. Federal financial aid are usually grants which do not have to be paid back. Federal loans are loans backed by the government and do have to be paid back but with a low interest rate. These loans usually have ten years to be paid back. These loans are usually referred to as direct student loans as they are paid directly to the higher learning establishment.
Top 5 Reasons To Check Your Credit Report Regularly
December 30, 2007
#1 Make sure mistakes aren’t hurting your credit.
Reviewing your credit report can help you avoid costly errors. In one recent study, more than 50% of the credit reports checked contained errors. Other studies have shown similar results with as high as a 70% error rate. The most common error occurs when the information of another person, with a similar name or account number, is recorded in your credit profile.
#2 Track your history of payments.
Potential lenders want to see a history of timely payments before they’ll consider offering you a loan or credit. Check your report to see that your payments are being reported accurately to the credit reporting agency (CRA). A history of late payments will result in higher interest rates being charged or having your credit application or a loan denied. Late payments will also lower your FICO score.
#3 Protect against potential identity theft.
Identity theft has become the fastest growing crime in our nation. Identity theft complaints jumped 75% from last year according to a recent Federal Trade Commission report. The monetary loss from identity theft crimes skyrocketed to a combined $53 billion in 2002! Accounts that appear on your credit report that weren’t opened by you could be a sign of identity theft. Report any such occurrences to all three major credit bureaus immediately and have them place a fraud alert on your account. The three bureaus can be reached at:
What On Earth are Home Equity Loans?
December 29, 2007
Home equity loans are one of the most common types of financing for doing improvements on your house. These loans are not necessary used for home improvements but can also be used to simply obtain extra cash. It is essentially a standard loan, based on the equity you have in your house. This is as opposed to mortgage loans which are the loans used to purchase a home. Equity is the value that you have paid on your mortgage loan.
If you are planning on building a house, it may be advisable to obtain a construction loan. These loans are available at most banks or lenders online. Home loans in general are available online. If you are looking for more information on loans that are available, try checking online.
By doing a simple search using any search engine, like Yahoo or Google, you will undoubtedly receive hundreds of pages of websites that offer information or loans themselves. These companies, while there are many, may not all offer the same things. On value in doing this type of research is the ability to compare and contrast the different types of loans and different lenders available. You can save a lot of money by doing some basic research. Countrywide Home Loans, is one such lender that uses the Internet as a tool in providing potential customers with updated information.
Loans Guide
December 28, 2007
Many people are confused by the different types of loans available.Here is a helpful summary of the most common loans available today.
Bad Credit Personal Loan
A Bad Credit Personal Loan is a loan designed for the many people with a bad credit rating. However created, your past record of County Court Judgements, mortgage or other loan arrears can live on to deny you access to finance that other people regard as normal. If you are a home owner with equity in your property, a Bad Credit Personal Loan can bring that normality back to your life. Secured on your home, a Bad Credit Personal Loan can give you the freedom, for example, to do the home improvements or buy the new car you really wanted. With a Bad Credit Personal Loan you can borrow from £5,000 to £75,000 and up to 125% of your property value in some cases.
Bridging Loan
A bridging loan as the name implies is a loan used to "bridge" the financial gap between monies required for your new property completion prior to your existing property having been sold.
Credit Establishment 101
December 27, 2007
There will come a day when you need credit. You may want to buy a home or a car and your credit rating will become very important to help make these dreams come true. One of the first things you will need to learn is the basic principle of money management, especially the ability to repay your creditors on time within the 30-day grace period they establish for you. Most people secure credit cards as the first way to establish credit in High School or College. Upon getting the credit card, usually a low spending limit, the ability to repay the card in an orderly fashion will help you establish a positive credit rating with the major repositories.
How your score is recorded
Upon making your monthly payments to the Credit Card Company or bank, your information is electronically transmitted to a credit-reporting agency. Trans Union, Equifax and Experian are the three major credit agencies. Once you have made your payments consistently your rating will rise accordingly. Once your rating has hit 650 or better, your mailbox will become flooded with attractive offers for credit cards and loans. People will want to give you the world because you can pay your bills in a timely manner.
The Top 5 Reasons to Buy a Home
December 26, 2007
1. Save on your income tax.
Yes, something good can come out of income tax. Due to income tax deductions, the government subsidizes your home purchase. Therefore all of the interest and property tax you pay throughout the year can be deducted from your gross income tax. A nice perk.
2. A Hidden Savings Account.
If you are anything like me, you can’t save money to save your life. Seriously, my fiancee covers all of that, thank God. With being a home owner you actually save money two ways :
Each month a portion of your payment goes towards the principal, so not much at first but after 20 or so years, well you do the math. It will add up.
Homes (if properly kept) appreciate in value. Again not much at first but the average appreciation value is roughly 5 - 6 percent. This by the way is per year. It is said owning a home is one of the very best financial decisions to make.
3. Your monthly payment is fixed.
Five Major Ways to Save Money
December 26, 2007
There are two main roads to improving your personal finances: increasing income, and cutting costs.
Increasing income is the harder road to travel. After all, you can’t always get a raise or a new job when you need one.
But cutting costs, that’s a different story!
You’re in complete control in this area. And all it takes is some imagination and discipline-both of which are free.
Below are five major ways to save money in the basic areas of food, shelter, clothing and transportation. They’re major expenses in your life - and places for major savings.
1. Home Cooking
Food is a major expense in everyone’s budget.
But, in today’s convenience food society, it’s easy to overlook how much money can be saved by cooking meals at home. Plus, it’s fun, creative, and healthier to make your own meals.
The key is to cook in “bulk” to stretch the food you buy over several meals.
If you’re a busy person with little time to spare, a good investment is a slow cooker (or crock pot). Generally, they run from $20 to $80, depending on the size.
Lower Your Credit Card Interest Rate Now!
December 25, 2007
With today’s credit card companies, there are many opportunities to get your cards rate of 21% or more reduced. The higher the amount of interest your card charges will cost you more for a simple purchase and ultimately may take you years to pay off instead of months, should you make the minimum payment allowed. People often just pay the minimum balance as a way to improve their credit rating; this couldn’t be a more dangerous way to increase your credit score. Leveraging the credit card company to say "Uncle" to your ability to switch over is easier than you think.
The switch over tactic
If your credit card interest rate is over 20% you should definitely seek relief in several ways. One of these ways is to let them know you are thinking of moving to a competitor’s credit card because they are offering a lower rate. They will move promptly to earn your dollars and interest. Let them know how unsatisfied you are about their ability to reduce your percentage rate commensurate with your ability to pay your bill in a timely manner. They will probably put you on hold immediately and speak with a manager to get your rate reduced.
Mortgage Cycling ? Brilliant or Risky
December 24, 2007
With mortgage rates near 20-year lows, competition in the mortgage industry is fierce. It seems like every day a new mortgage loan strategy comes out that is suppose to be the best thing since sliced bread. Whether it’s a mortgage with no closing costs or an interest only mortgage, everyone is claiming they can save you a ton of money. Now someone has come out with something called Mortgage Cycling. Mortgage Cycling could save you thousands of dollars or it could cost you your home.
Mortgage cycling is a program that advertises itself as a method to payoff your mortgage in 10 years or less without making biweekly mortgage payments or changing your current mortgage. Does mortgage cycling work as advertised? The answer is unequivocally yes ? with a few caveats. I’m going to let you in on the secret to mortgage cycling.
Mortgage cycling is based on making huge lump sum principal payments every 6-10 months. What this means is mortgage cycling works well for those who have at least a few hundred dollars in extra cash at the end of each month. The problem is most people don’t have that kind of cash available.
