When a borrower is labeled as having poor credit, it indicates the lenders that the borrower is a risk. But there are lenders in the loan marketplace who are always willing to offer poor credit unsecured loans to people having credit problems like late payments, arrears, payment defaults or county court judgments against their names in their credit reports. You can have a Poor credit unsecured loans for any purpose like home improvements, wedding, clearing debts, buying car etc.
Poor credit unsecured loansare provided without any security offer from the borrower. In other words the loans are fully risk free offers for the borrowers. However the lender will surely confirm that you have sufficient repaying capacity and so your income and employment documents are crucial in taking the loan. Because you have poor credit, the lender will charge you higher interest rate that may go even higher in case your credit score is too low. So make sure that you have checked your credit score. The loan amount as poor credit unsecured loans usually ranges £5000 to £25000 for shorter repayment duration of 5 to 15 years.
One use of Poor credit unsecured loans is that you can improve your credit score. As you pay off the loan installments regularly it is reported in your credit report which in turn results in increase in your credit score. So pay off the loan installments in regular manner.
There are many lenders these days that are in the business of providing unsecured loans to poor credit people. Each lender claims of a suitable loan. So compare their interest rate and terms-conditions in order to have a suitable and less burdensome deal. You can take rate quotes of these lenders for having a better idea of prevailing interest rates in the unsecured loan market.
View the original article here
Tuesday, May 31, 2011
Monday, May 30, 2011
Are New Lending Rules Hurting the Economy?
Everybody knows that the economic crisis came about, in large part, because loans were given that could not be paid back. Since then, both the government and individual lending agencies have developed stricter lending policies in order to prevent the same thing from happening again.
In theory, this is a good thing. Stricter lending laws seem to lead directly to the giving out of fewer bad loans, which in turn will not be sold as investments and will not tank the economy when they’re not paid back.
The downside of stricter lending, though, is that having fewer bad loans means having fewer loans in general, and that means less consumer spending and fewer new jobs in important sectors such as the construction industry.
While many of these stricter lending policies have to do with loans given out to individuals and families hoping to purchase a new home, some of them also target construction companies. These companies are often being asked to put down double the down payment they had before the financial crisis, plus a deposit equal to a year’s worth of interest on the loan. With this kind of up-front investment, it’s no wonder construction still only proceeds slowly.
Since the construction industry is one of the prime places where new jobs will pop up, holding it back means holding back the entire economy. Some economists say that this is worth it to deter another crisis, but others aren’t so sure.
And the stricter lending policies are hitting individuals, too. Take the new FHA lending rules, for instance. Not only are they making loans harder to get, but they’re hurting condo prices across the country. It’s now harder than ever for a condo complex to qualify for FHA buyers, and that means the pool of potential purchasers for these condos is lower. With demand down, condo owners have to sell for less or hold out and hope things get better.
With every positive move, it seems, there are also negative repercussions.
View the original article here
In theory, this is a good thing. Stricter lending laws seem to lead directly to the giving out of fewer bad loans, which in turn will not be sold as investments and will not tank the economy when they’re not paid back.
The downside of stricter lending, though, is that having fewer bad loans means having fewer loans in general, and that means less consumer spending and fewer new jobs in important sectors such as the construction industry.
While many of these stricter lending policies have to do with loans given out to individuals and families hoping to purchase a new home, some of them also target construction companies. These companies are often being asked to put down double the down payment they had before the financial crisis, plus a deposit equal to a year’s worth of interest on the loan. With this kind of up-front investment, it’s no wonder construction still only proceeds slowly.
Since the construction industry is one of the prime places where new jobs will pop up, holding it back means holding back the entire economy. Some economists say that this is worth it to deter another crisis, but others aren’t so sure.
And the stricter lending policies are hitting individuals, too. Take the new FHA lending rules, for instance. Not only are they making loans harder to get, but they’re hurting condo prices across the country. It’s now harder than ever for a condo complex to qualify for FHA buyers, and that means the pool of potential purchasers for these condos is lower. With demand down, condo owners have to sell for less or hold out and hope things get better.
With every positive move, it seems, there are also negative repercussions.
View the original article here
Student Loans – How Interest Rates Are Set on Federal Loans
You've got to take on student loan debt these days if you want to go to college unless you are very lucky. Student loan debt is like any debt. The key to how quickly you can pay it off often comes down to the interest rates. For people with federal loans, the good news is interest rates are quirky in a positive way.
The economic condition of the United States is supposedly in a recovery from the Great Recession we recently suffered. With business slow and unemployment in double digits, it is hard to make much of an argument that this recovery has really hit most of us. As we stagger forward, things will improve slowly, but a fiscal accounting must take place. That accounting is going to come in the form of higher interest rates.
We have interest rates that are so low now that we've rarely seen such an economic condition in our history. The Federal Reserve essentially is loaning out money to banks at a zero interest rate. That can't last. When it changes, rates are going to move up and so are your debt loads. For those with fixed rate loans, the news will mean little since rates will stay the same on the debt in question. For those with adjustable rates, things are going to get ugly.
What about federal student loans? Well, I have really good news if you are carrying federal student loan debt. The rates on your loan are not set by the market or some cold bank per se. Instead, Congress actually sets the rates on your loans. The legislative body actually sets a range of rates that can be charged for each loan, but the banks actually issuing the money always [and I mean always!] go with the highest possible allowed rate. The rates can change year to year, but are usually much lower than private loans and such. You can access the current rates for Perkins, Stafford and PLUS loans at the website for the Department of Education.
Like all debt, the interest rates on student loans are going to be going up in the next few years as the Federal Reserve raises rates in general. If you have federal loans, you can expect the pain of these increases to be much smaller than with private loans.
View the original article here
The economic condition of the United States is supposedly in a recovery from the Great Recession we recently suffered. With business slow and unemployment in double digits, it is hard to make much of an argument that this recovery has really hit most of us. As we stagger forward, things will improve slowly, but a fiscal accounting must take place. That accounting is going to come in the form of higher interest rates.
We have interest rates that are so low now that we've rarely seen such an economic condition in our history. The Federal Reserve essentially is loaning out money to banks at a zero interest rate. That can't last. When it changes, rates are going to move up and so are your debt loads. For those with fixed rate loans, the news will mean little since rates will stay the same on the debt in question. For those with adjustable rates, things are going to get ugly.
What about federal student loans? Well, I have really good news if you are carrying federal student loan debt. The rates on your loan are not set by the market or some cold bank per se. Instead, Congress actually sets the rates on your loans. The legislative body actually sets a range of rates that can be charged for each loan, but the banks actually issuing the money always [and I mean always!] go with the highest possible allowed rate. The rates can change year to year, but are usually much lower than private loans and such. You can access the current rates for Perkins, Stafford and PLUS loans at the website for the Department of Education.
Like all debt, the interest rates on student loans are going to be going up in the next few years as the Federal Reserve raises rates in general. If you have federal loans, you can expect the pain of these increases to be much smaller than with private loans.
View the original article here
Sunday, May 29, 2011
Dirty Little Credit Card Balance Transfer Secrets Exposed
Do you remember the CARD Act of 2009? If so, then you know it was created to protect American consumers from being held hostage by credit card companies. This Act has done a good job in some respects, but there are some dirty tricks that you should be aware of before truly claiming victory.
Surveys show that the average American household has nearly $5,000 in unpaid credit card debt, most of whom are searching for ways to pay off these debts cheaply. If you’re like most, you have probably thought of transferring over your balance from higher interest cards to a card with a low introductory interest rate, but should you?
The Use of Balance Transfers Before the CARD Act
Let’s say you have the average household credit card debt of $5,000, and last year you responded to an offer from First Friendly Bank for a 0% APR on a balance transfer credit card. Likely you decided to do this (after reading the fine print of course), thinking that you could pay off your debt before the intro period ended and the higher 15% interest rate kicked in.
So you went ahead and got the credit card and transferred your balance over. You felt confident that you would be able to pay off the $5,000, and even used the extra room on the credit card to pay off an accumulating pile of other bills that was worth $1,000.
Eager to get rid of some of your debt, you decide to send in $500 as a first payment and it is applied to your balance. Now, you likely won’t see this noted on your statement, but your balance transfer is accounted for by your bank as a separate balance from your other bills, and the two incur their own separate interest rates. Now, what will the bank do to split the $500 you sent in between the two balances?
Just think of these two balances as two different bowls. The bank would previously have put your entire $500 payment in the balance transfer bowl. During the pre-CARD Act era, the other bowl wouldn’t have seen any of that money until the other balance transfer bowl was completely taken care of. So you would be charged the full 15% interest on the $1,000 that you spent until you fully paid off the $5,000 from the other balance. If it ended up taking you a full year to pay this off, you would have generated $160 worth of interest on your $1,000 bowl. Then if it took more than a year, that $160 would continue to grow.
Are Balance Transfers Safer Post-CARD Act?
President Obama signed credit card legislation in 2009 that changed the way banks have to behave in situations like that above. Now, these credit card companies are required to apply payments made by consumers to the bowl with the higher interest rate first, no matter how many bowls you have and which have the biggest balances. Of course, this doesn’t mean that it is 100 percent safe – nothing ever truly is. There is a catch within the fine print so that only payments greater than the minimum payment have to be applied to the bowl with the highest interest. So they are still given the freedom to put minimum payments to any of the bowls they wish to.
If you’re only able to pay the minimum payments on your charge cards, all of those payments will be going to the balance transfer bowl. This means that you are going to continue paying off your low interest or 0% credit card balances while the purchases you make still get charged the higher APRs. This is why it is important for consumers to do everything within their power to pay more than just the minimum payment monthly.
Other Dirty Secrets to Know About
Other than the interest rates that are being charged by these banks and the methods they use for the balance transfers, financial institutions are charging upfront fees for transferred balances. A little over a year ago, these fees were typically around 3%, which means you’d pay about $150 upfront for your $5,000 balance transfer. Today, many of these transfer fees are even higher at 5%, which is $250 for a $5,000 balance transfer.
Then there is the problem with professional credit card schemes that banks have been employing since the CARD Act was established. These professional credit cards are none other than business credit cards, which aren’t protected by the Act. So if you decide to get one of these business cards for transferring your balance or in order to take advantage of deals on introductory purchase APRs, the bank has the freedom to put the payments you make on low-rate balances, while charging you the max interest rates from other balances.
If used responsibly, credit cards can indeed be a great way to manage money, but it’s important to keep an eye on the fine print. The only way that these credit cards will work favorably for you is if you are knowledgeable about mitigating the fees that you have to face at each turn, and if you are able to make full payments each month. Dealing with unnecessary interest fees can quickly trip you down a dark abyss, so try to avoid them as best you can, perhaps look at personal loans with fixed rates and payments as a more predictable alternative.
View the original article here
Surveys show that the average American household has nearly $5,000 in unpaid credit card debt, most of whom are searching for ways to pay off these debts cheaply. If you’re like most, you have probably thought of transferring over your balance from higher interest cards to a card with a low introductory interest rate, but should you?
The Use of Balance Transfers Before the CARD Act
Let’s say you have the average household credit card debt of $5,000, and last year you responded to an offer from First Friendly Bank for a 0% APR on a balance transfer credit card. Likely you decided to do this (after reading the fine print of course), thinking that you could pay off your debt before the intro period ended and the higher 15% interest rate kicked in.
So you went ahead and got the credit card and transferred your balance over. You felt confident that you would be able to pay off the $5,000, and even used the extra room on the credit card to pay off an accumulating pile of other bills that was worth $1,000.
Eager to get rid of some of your debt, you decide to send in $500 as a first payment and it is applied to your balance. Now, you likely won’t see this noted on your statement, but your balance transfer is accounted for by your bank as a separate balance from your other bills, and the two incur their own separate interest rates. Now, what will the bank do to split the $500 you sent in between the two balances?
Just think of these two balances as two different bowls. The bank would previously have put your entire $500 payment in the balance transfer bowl. During the pre-CARD Act era, the other bowl wouldn’t have seen any of that money until the other balance transfer bowl was completely taken care of. So you would be charged the full 15% interest on the $1,000 that you spent until you fully paid off the $5,000 from the other balance. If it ended up taking you a full year to pay this off, you would have generated $160 worth of interest on your $1,000 bowl. Then if it took more than a year, that $160 would continue to grow.
Are Balance Transfers Safer Post-CARD Act?
President Obama signed credit card legislation in 2009 that changed the way banks have to behave in situations like that above. Now, these credit card companies are required to apply payments made by consumers to the bowl with the higher interest rate first, no matter how many bowls you have and which have the biggest balances. Of course, this doesn’t mean that it is 100 percent safe – nothing ever truly is. There is a catch within the fine print so that only payments greater than the minimum payment have to be applied to the bowl with the highest interest. So they are still given the freedom to put minimum payments to any of the bowls they wish to.
If you’re only able to pay the minimum payments on your charge cards, all of those payments will be going to the balance transfer bowl. This means that you are going to continue paying off your low interest or 0% credit card balances while the purchases you make still get charged the higher APRs. This is why it is important for consumers to do everything within their power to pay more than just the minimum payment monthly.
Other Dirty Secrets to Know About
Other than the interest rates that are being charged by these banks and the methods they use for the balance transfers, financial institutions are charging upfront fees for transferred balances. A little over a year ago, these fees were typically around 3%, which means you’d pay about $150 upfront for your $5,000 balance transfer. Today, many of these transfer fees are even higher at 5%, which is $250 for a $5,000 balance transfer.
Then there is the problem with professional credit card schemes that banks have been employing since the CARD Act was established. These professional credit cards are none other than business credit cards, which aren’t protected by the Act. So if you decide to get one of these business cards for transferring your balance or in order to take advantage of deals on introductory purchase APRs, the bank has the freedom to put the payments you make on low-rate balances, while charging you the max interest rates from other balances.
If used responsibly, credit cards can indeed be a great way to manage money, but it’s important to keep an eye on the fine print. The only way that these credit cards will work favorably for you is if you are knowledgeable about mitigating the fees that you have to face at each turn, and if you are able to make full payments each month. Dealing with unnecessary interest fees can quickly trip you down a dark abyss, so try to avoid them as best you can, perhaps look at personal loans with fixed rates and payments as a more predictable alternative.
View the original article here
Saturday, May 28, 2011
Why Asking too Much For Your Home Doesn’t Help it Sell
Since the fall of housing prices over the last few years, many home owners seem determined to get at least their purchase price out of their home for sale, while many others are looking to recoup the amount of money that they've paid into their homes. While this seems like a reasonable strategy, when you consider that the fall in housing prices has greatly reduced the amount of money that many of these homes are worth now, it is easy to see how listing your home at possibly a hugely inflated price is most certainly going to hurt your chance of a sale.
There are many problems with pricing your home with unrealistic expectations, as you can well imagine. Firstly, if you price your home like you're trying to sell it to home buyers who've taken a time machine trip from 2005, you're likely to not get many people coming to look at your home. Anyone who is looking for homes in the price range that you've set for your home is probably going to be looking at substantially nicer or larger homes than yours because your home should be priced in a lower bracket. If you do get any prospective buyers coming through to tour your home, you are likely to not get many offers'at least not in the range that you're looking for.
What home owners might not realise though, is that a home that sits on the market for long periods of time isn't encouraging for prospective buyers; they see that a property has been on the market for months'maybe with small drops in the outrageous asking price'and decide that all the other buyers out there have already decided that it's not a property that's worth buying. In addition, you've had to keep your home in a show-ready state for months in case a realtor calls to show your house; this can be merely a hassle to keep a home in a permanently staged state and it can also cost you money if you're renting furniture or having a house cleaner come in to help you keep it immaculate.
For your best results in home selling, consult your realtor for their judgement on what kind of listing price they think that you should start with; many listing agents won't even take on a client if they insist on pricing their home completely unreasonably because they know that it can be a waste of time to go through all that work for something that isn't going to sell.
View the original article here
There are many problems with pricing your home with unrealistic expectations, as you can well imagine. Firstly, if you price your home like you're trying to sell it to home buyers who've taken a time machine trip from 2005, you're likely to not get many people coming to look at your home. Anyone who is looking for homes in the price range that you've set for your home is probably going to be looking at substantially nicer or larger homes than yours because your home should be priced in a lower bracket. If you do get any prospective buyers coming through to tour your home, you are likely to not get many offers'at least not in the range that you're looking for.
What home owners might not realise though, is that a home that sits on the market for long periods of time isn't encouraging for prospective buyers; they see that a property has been on the market for months'maybe with small drops in the outrageous asking price'and decide that all the other buyers out there have already decided that it's not a property that's worth buying. In addition, you've had to keep your home in a show-ready state for months in case a realtor calls to show your house; this can be merely a hassle to keep a home in a permanently staged state and it can also cost you money if you're renting furniture or having a house cleaner come in to help you keep it immaculate.
For your best results in home selling, consult your realtor for their judgement on what kind of listing price they think that you should start with; many listing agents won't even take on a client if they insist on pricing their home completely unreasonably because they know that it can be a waste of time to go through all that work for something that isn't going to sell.
View the original article here
Warning Signs to Look For in a Home
When house hunting, it’s easy to get caught up in the great aspects of a house, but it’s critical that you keep an eye out for warning signs and ask plenty of questions.
It’s important to look at the not-so-obvious problems and potential problems that could arise if you buy the home. Discovering flaws could help you when negotiating price, and it will give you time to consider just how many repairs need to be made if you decide to purchase the house.
To avoid later grief, consider this list of tips and questions when deciding if a particular type of home is right for you.
Neighborhood
Exterior
Stand across the street.
Garage
Interior
Check the ceilings and walls for watermark stains or mold; this is an indication of water damage. Consider visiting the house on a rainy day to check for leaks.
Flooring
Wood flooring and natural stone should be sealed with non-toxic sealers.
Electrical
Water
General
You probably have more questions of your own, but hopefully you will consider these to be a good start as you determine whether a particular house is the one you want to call “home sweet home.”
View the original article here
It’s important to look at the not-so-obvious problems and potential problems that could arise if you buy the home. Discovering flaws could help you when negotiating price, and it will give you time to consider just how many repairs need to be made if you decide to purchase the house.
To avoid later grief, consider this list of tips and questions when deciding if a particular type of home is right for you.
Neighborhood
- Have neighbors complained about air or noise pollution from traffic and industry in the area?
- How close is the house to power lines or large electrical towers?
- When it rains, is there good drainage or does the street flood, threatening to do the same to your basement?
Exterior
Stand across the street.
- Does the land slope toward the house? (Drainage should be away from the perimeter of the home)
- Do any of the materials show signs of rotting or a previous bug problem?
- Does the house have suitable storm windows?
- Do all the windows have screens? Do they open and close easily? (Press your finger into the wood of the sills; if it’s soft, it’s rotten!)
- Are all doors able to shut completely to avoid drafts/bugs?
- When was the roof last replaced?
- Are there odd bumps or dips?
- Are shingles missing?
Garage
- If the house has an attached garage, is there space or a well-sealed door between the garage and the living area?
- Is there adequate vehicle and storage space?
Interior
Check the ceilings and walls for watermark stains or mold; this is an indication of water damage. Consider visiting the house on a rainy day to check for leaks.
- Does the basement or crawl space smell damp or moldy?
- Does the staircase seem sturdy, or is it squeaky and unsteady?
- Is the paint peeling or the molding cracked?
Flooring
Wood flooring and natural stone should be sealed with non-toxic sealers.
- What’s underneath? (Less expensive subflooring is prone to water damage.Inspect tiles and grout for cracks.Check for holes and crevices that could let in pests.)
Electrical
- Does the location of the home make it prone to power outages?
- Are the switches antiquated? If so, perhaps the wiring is too.
- Is the fuse box easy to understand?
- Are there enough outlets for your needs?
- Are they in preferable places throughout the house? (Try to avoid situations where the bedroom backs up against the kitchen wall where the refrigerator or other large appliances are running.)
Water
- Does the home have copper plumbing? (Run the water in the kitchen, bathroom and laundry room to test water pressure, cleanliness of the water and proper drainage.Look for moisture damage, mold or leaking around and underneath the sink.Check the hot water system.)
- Is it leaky or rusty?
- Is it big enough for your family?
General
- Does the house have central heating and air conditioning?
- How old are the systems?
- Are they functioning well?
- What are the average monthly costs for heating and cooling? (Good insulation is key!)
- Is there proper ventilation in the kitchen and bathroom? (The house should be tested for lead, asbestos and radon. A termite check is a good idea too.)
- Is there adequate storage for all of your belongings? (Bring out a tape measure to make sure the furniture you plan to bring with you will fit in the rooms. Measure spaces to make sure your appliances such as the refrigerator, washing machine, dishwasher and microwave will fit.)
You probably have more questions of your own, but hopefully you will consider these to be a good start as you determine whether a particular house is the one you want to call “home sweet home.”
View the original article here
Friday, May 27, 2011
Reason that Cash is King
Those of you who have read my blogs in the past know that I am a proponent of having an ample, but not excessive, amount of cash on hand. This emergency fund will pay off for you handsomely at one time in your financial life, and help you sleep better all the time. But now there is another reason to keep ample cash on hand - access to one of the (inappropriate and harmful) alternatives often used by people tight on cash could be blocked.
Today, two senators announced that they are introducing legislation that, in an effort to counter the erosion of retirement assets, would limit the ability of workers to tap their 401(k) retirement plans for loans.
"During these difficult economic times, we are increasingly seeing 401(k) funds being treated as rainy-day funds," Senator Herb Kohl, a Wisconsin Democrat, said in a statement obtained by Bloomberg News. "A 401(k) savings account should not be used as a piggy bank for revolving loans."
Almost 28 percent of participants in 401(k)-type accounts had an outstanding loan at the end of 2010, which is a record, according to a study released today by benefits consultant Aon Hewitt, a unit of Chicago-based Aon Corp.
"The big risk with loans is that participants leave their job," said Alison Borland, head of retirement strategy for Aon Hewitt. Most 401(k) plans require employees to repay loans in full when leaving a job, usually within 60 days, said Borland. Almost 70 percent default, Borland said, so the unpaid funds get counted as taxable income and may add to the burden of a jobless worker.
One of my key tenets of smart financial management is to avoid having to buy or sell something on short notice (also know, invariably, as "the wrong time"). Executing that plan requires having the appropriate amount of cash on hand to protect you, should you experience an emergency or your income is reduced or eliminated.
And even though Congress has your best interests in mind when trying to keep you from borrowing against your 401(K), it does close an option for you and require you to look seriously at how much cash you are holding.
View the original article here
Today, two senators announced that they are introducing legislation that, in an effort to counter the erosion of retirement assets, would limit the ability of workers to tap their 401(k) retirement plans for loans.
"During these difficult economic times, we are increasingly seeing 401(k) funds being treated as rainy-day funds," Senator Herb Kohl, a Wisconsin Democrat, said in a statement obtained by Bloomberg News. "A 401(k) savings account should not be used as a piggy bank for revolving loans."
Almost 28 percent of participants in 401(k)-type accounts had an outstanding loan at the end of 2010, which is a record, according to a study released today by benefits consultant Aon Hewitt, a unit of Chicago-based Aon Corp.
"The big risk with loans is that participants leave their job," said Alison Borland, head of retirement strategy for Aon Hewitt. Most 401(k) plans require employees to repay loans in full when leaving a job, usually within 60 days, said Borland. Almost 70 percent default, Borland said, so the unpaid funds get counted as taxable income and may add to the burden of a jobless worker.
One of my key tenets of smart financial management is to avoid having to buy or sell something on short notice (also know, invariably, as "the wrong time"). Executing that plan requires having the appropriate amount of cash on hand to protect you, should you experience an emergency or your income is reduced or eliminated.
And even though Congress has your best interests in mind when trying to keep you from borrowing against your 401(K), it does close an option for you and require you to look seriously at how much cash you are holding.
View the original article here
What Is Flood Insurance?
In light of the unfortunate flooding in the Mississippi River area, people are wondering, “What if this happened to me? How can I protect myself and my family?”
According to FloodSmart.gov (the official site of the National Flood Insurance Program), everyone is at risk of flooding. Floods can happen almost anywhere. In fact, floods are the most common natural disaster in the U.S. They can happen even if you don’t live in a high-risk area. For instance, a flood can happen during winter when temperatures rise suddenly and the frozen ground can’t absorb the melting snow.
The Cost of Flooding
Floods can be extremely costly. Over the last 10 years, the average flood claim has amounted to approximately $48,000. For instance, the cost of a 6-inch flood in a 1000- square foot home is about $20,000. Here is a sample breakdown of the cost associated with a 6-inch flood:
As you can see, even a “small” flood can make a huge impact and damage on your property.
Who Is Required to Buy Flood Insurance?
For homeowners who live in coastal and high-risk zones, flood insurance is mandatory. The Federal Emergency Management Agency (FEMA) mandates it for any mortgage that is backed by the government
For homes built in low to moderate-risk and undetermined risk zones, flood insurance is optional. While flood insurance is not federally required for moderate-to-low risk areas, it is still recommended. Some people choose to purchase flood insurance just for the peace of mind.
How Can You Buy a Flood Insurance Policy?
Unfortunately, standard homeowners’ insurance doesn’t cover flooding. This means that homeowners have to purchase separate flooding insurance. There are two ways an owner can purchase flood insurance:
Keep in mind that regardless where you purchase the flood insurance (NFIP or an insurance company) you will always use an insurance agent to purchase it. You can always contact the NFIP for a referral to an insurance agent.
Is My Home In A Flood Zone?
Even if you are renting, it’s still wise to learn if your home is in a flood zone. You can ask your insurance company or your community floodplain manager for a Floor Insurance Rate Map (FIRM). A FIRM will generally show a community’s base flood elevations, flood zones and floodplain boundaries. Keep in mind that FIRM maps are constantly being updated due to changes in geography, construction, mitigation activities and meteorological events.
View the original article here
According to FloodSmart.gov (the official site of the National Flood Insurance Program), everyone is at risk of flooding. Floods can happen almost anywhere. In fact, floods are the most common natural disaster in the U.S. They can happen even if you don’t live in a high-risk area. For instance, a flood can happen during winter when temperatures rise suddenly and the frozen ground can’t absorb the melting snow.
The Cost of Flooding
Floods can be extremely costly. Over the last 10 years, the average flood claim has amounted to approximately $48,000. For instance, the cost of a 6-inch flood in a 1000- square foot home is about $20,000. Here is a sample breakdown of the cost associated with a 6-inch flood:
- Cleaning = $1,000
- Doors, base, trim and windows = $1,100
- Electrical and plumbing = $150
- Finished floor, wood, carpet = $7,900
- Interior wall finishes = $1,000
- Wall insulation, drywall or paneling = $1,500
- Kitchen and bath cabinets= $2,400
- Appliances = $90
- Repairs to furnace/AC = $250
- Bedroom furniture = $950
- Dining room furniture = $900
- Kitchen ware and food = $150
- Living room furniture = $1,400
- Computer accessories = $600
- TV accessories = $80
- Washer and drier = $80
- Accent furniture and accessories = $250
- Personal items = $350
As you can see, even a “small” flood can make a huge impact and damage on your property.
Who Is Required to Buy Flood Insurance?
For homeowners who live in coastal and high-risk zones, flood insurance is mandatory. The Federal Emergency Management Agency (FEMA) mandates it for any mortgage that is backed by the government
For homes built in low to moderate-risk and undetermined risk zones, flood insurance is optional. While flood insurance is not federally required for moderate-to-low risk areas, it is still recommended. Some people choose to purchase flood insurance just for the peace of mind.
How Can You Buy a Flood Insurance Policy?
Unfortunately, standard homeowners’ insurance doesn’t cover flooding. This means that homeowners have to purchase separate flooding insurance. There are two ways an owner can purchase flood insurance:
- If the property is required to have flood insurance and is financed with a federally backed mortgage (FHA, VA, Fannie Mae, Freddie Mac) then the owner can purchase insurance through the National Flood Insurance Program (NFIP).
- If the property is not in a high-risk or coastal area and having flood insurance is optional, then the owner can purchase a policy through the NFIP or with an insurance company that offers this type of insurance.
Keep in mind that regardless where you purchase the flood insurance (NFIP or an insurance company) you will always use an insurance agent to purchase it. You can always contact the NFIP for a referral to an insurance agent.
Is My Home In A Flood Zone?
Even if you are renting, it’s still wise to learn if your home is in a flood zone. You can ask your insurance company or your community floodplain manager for a Floor Insurance Rate Map (FIRM). A FIRM will generally show a community’s base flood elevations, flood zones and floodplain boundaries. Keep in mind that FIRM maps are constantly being updated due to changes in geography, construction, mitigation activities and meteorological events.
View the original article here
Are Forex Markets Underpricing Volatility?
This question has been raised by several market commentators, including The Wall Street Journal. Its recent analysis, entitled “Currency Investors: What, Me Worry?” wondered whether the forex markets might not have become too complacent about risk and have seriously underestimated the possibility of another shock.First, some basics. There are two principal volatility measurements: implied volatility and realized volatility. The former is so-called because it must be deduced indirectly. In the Black-Scholes model for pricing options, volatility is the only unknown variable and thus is implied by current market prices. It serves as a proxy for investor expectations for volatility over the period for which the option is valid. Realized volatility is of course the actual volatility that is observed in currency markets, calculated based on the size of fluctuations over a given period of time. When fluctuations are greater (whether upward or downward), volatility is said to be high.For short time frames, implied volatility tends to be very close to realized volatility.
For longer time-frames, however, this is not necessarily the case: “The long-dated implied volatilities are often driven to extreme values by one-sided demand or supply – the difference between implied and realised volatilities this causes is particularly large during periods of risk aversion in the market…making implied volatility a particularly poor proxy for realised volatility during periods of market unrest.” In practice, this is reflected by higher prices for long-dated put or call options (depending on the direction of the move that investors are trying to hedge against).
Indeed, most volatility metrics are well below their historical averages and are rapidly closing in on pre-credit crisis levels. This is true for the JP Morgan G7 3-month forex volatility index, the S&P VIX, as well as for specific currencies. Mataf.net (whose content manager I interviewed yesterday) contains replete short-term and long-term data for a few dozen currency pairs, and you can see that almost all of them feature the same downward trend. According to the WSJ, “Investors believe there is a 66% chance each day for the next month that the euro and pound will move no more than 0.6% and 0.5%, respectively—both limited moves.”
In addition, “A gauge of the euro’s ‘realized’ volatility, which measures how much daily changes deviate from their recent average, is only 8.6%, lower than its 11% rolling one-year average.”Of course, some commentators don’t see any problem here. They see it both as a positive indication that the markets have returned to normal following the financial crisis, and as a reflection of the correlation that has developed between stock prices and forex markets. (You can see from the chart below the strong inverse correlation between the S&P and the US dollar). According to Deutsche Bank, “Most news that should have shocked the market this year has not managed to do so for sufficiently long to make volatility rise sustainably. Our analytical models tell us that we are indeed moving to a low volatility environment again.”
On the other side of the debate is a growing consensus of investors that sees a pendulum that has swung too far. “I just don’t see how volatility will not increase quite substantially,” said one money manager. “There is significant potential for shocks to the system that currency volatility levels suggest the market is not prepared for,” added another, citing higher commodities prices and inflation, growing public debt, and the imminent end of the Fed’s QE2 monetary stimulus.To be sure, volatility has started to tick up over the last month. This trend has also been reflected in options prices: “Many investors have avoided buying short-dated currency options this year, instead focusing on longer-dated protection, a phenomenon called a ‘steep volatility curve’…that trend has slowed a bit, with investors moving to hedge against near-term yen, euro and dollar swings.”Currency traders should start to think about making a few adjustments. Those that think that volatility will continue to rise and/or that the markets are currently underpricing risk can employ a volatility strangle strategy, buying way out-of-the-money puts and calls. The options will pay off if there is a big move in either direction, with no downside risk. Those that think that volatility will continue declining or at least remain at current low levels can make use of the carry trade. Those pairs where interest rate differentials are highest and volatility levels are lowest represent the best candidates. BNP Paribas is also reportedly developing a product that will make it easier for traders to make volatility bets without having to rely on indirect means.
View the original article here
For longer time-frames, however, this is not necessarily the case: “The long-dated implied volatilities are often driven to extreme values by one-sided demand or supply – the difference between implied and realised volatilities this causes is particularly large during periods of risk aversion in the market…making implied volatility a particularly poor proxy for realised volatility during periods of market unrest.” In practice, this is reflected by higher prices for long-dated put or call options (depending on the direction of the move that investors are trying to hedge against).
Indeed, most volatility metrics are well below their historical averages and are rapidly closing in on pre-credit crisis levels. This is true for the JP Morgan G7 3-month forex volatility index, the S&P VIX, as well as for specific currencies. Mataf.net (whose content manager I interviewed yesterday) contains replete short-term and long-term data for a few dozen currency pairs, and you can see that almost all of them feature the same downward trend. According to the WSJ, “Investors believe there is a 66% chance each day for the next month that the euro and pound will move no more than 0.6% and 0.5%, respectively—both limited moves.”
In addition, “A gauge of the euro’s ‘realized’ volatility, which measures how much daily changes deviate from their recent average, is only 8.6%, lower than its 11% rolling one-year average.”Of course, some commentators don’t see any problem here. They see it both as a positive indication that the markets have returned to normal following the financial crisis, and as a reflection of the correlation that has developed between stock prices and forex markets. (You can see from the chart below the strong inverse correlation between the S&P and the US dollar). According to Deutsche Bank, “Most news that should have shocked the market this year has not managed to do so for sufficiently long to make volatility rise sustainably. Our analytical models tell us that we are indeed moving to a low volatility environment again.”
On the other side of the debate is a growing consensus of investors that sees a pendulum that has swung too far. “I just don’t see how volatility will not increase quite substantially,” said one money manager. “There is significant potential for shocks to the system that currency volatility levels suggest the market is not prepared for,” added another, citing higher commodities prices and inflation, growing public debt, and the imminent end of the Fed’s QE2 monetary stimulus.To be sure, volatility has started to tick up over the last month. This trend has also been reflected in options prices: “Many investors have avoided buying short-dated currency options this year, instead focusing on longer-dated protection, a phenomenon called a ‘steep volatility curve’…that trend has slowed a bit, with investors moving to hedge against near-term yen, euro and dollar swings.”Currency traders should start to think about making a few adjustments. Those that think that volatility will continue to rise and/or that the markets are currently underpricing risk can employ a volatility strangle strategy, buying way out-of-the-money puts and calls. The options will pay off if there is a big move in either direction, with no downside risk. Those that think that volatility will continue declining or at least remain at current low levels can make use of the carry trade. Those pairs where interest rate differentials are highest and volatility levels are lowest represent the best candidates. BNP Paribas is also reportedly developing a product that will make it easier for traders to make volatility bets without having to rely on indirect means.
View the original article here
Thursday, May 26, 2011
Technical Analysis: “Morning Fake-out”
As regular readers of this blog are probably aware, I rarely post about technical analysis. Simply, I’m not well-acquainted with its nuances, and I would probably sound like a dilettante if I tried to offer some serious advice on the subject. That being said, I read an interesting overview of a particular technical strategy (in the San Francisco Gate, of all places…please hold your laughter), that appealed to me on a number of levels, and that I would like to to share below.Contrary to popular belief, the forex market is not a 24-hour market. Given time differences and market overlap, it’s true that it’s possible to trade forex 24 hours a day, six days a week. In practice, however, the markets are observably more active/liquid at certain regular hours.
Anecdotally, it seems that many traders focus their trading at these hours, since the opportunities for profit (and losses, to be fair) are greatest at these times.The author of the article (Investopedia contributor Cory Mitchell) has specifically identified the opening of certain key markets (typically 9AM local time; actual time will vary based on your location). Prior to opening, the markets may appear calm before a sudden onslaught of trading activity, as banks move to establish new positions for the day, stop orders are cleared, and the market struggles to find direction. In every major market, there are a handful of currency pairs that dominate trading in that market, and that traders should pay special attention to at the open. Tokyo has the Yen; London has the Pound, Euro, and Franc; New York has the US Dollar.This confusion may create an opportunity if a so-called “fake-out” occurs. Basically, the market will suddenly lurch in one direction, and trading desks might latch (mistakenly) onto this pattern with the goal of reaping early morning profits. In some cases, this break-out will just as quickly reverse course, and a dominant trend will re-establish itself. Those who have correctly anticipated this can enter the market in the direction of the dominant trend and ride the wave in that direction as it entrenches.I like this strategy because I think it is grounded in human psychology.
Basically, it speaks to early-morning overzealousness by poor traders that is quickly overcome by broader market forces, which will re-assert themselves when opportunity resurfaces. Of course, the market is zero-sum, which means that all profits are necessarily earned at the expense of those caught trading what in hindsight was a false breakout.Of course, trading the morning fake-out is hardly this simplistic, and those that are curious to learn more would be wise to read the original article. Still, I think it offers a few convenient lessons for aspiring technical traders, and even for fundamental traders with shorter time horizons. First, understand that the market is inherently busier at some times of the day than others. Second, understand that while the trend is still your friend, there are micro-trends which may be moving in the opposite direction from the macro-trend. Third, make sure to establish stops, so that if you are unlucky enough to get caught trading in the direction of the fake-out, your losses are limited. Finally, it’s worth remembering that the forex market is inherently zero-sum. While an overall bear market is categorically impossible, so is an overall bull market.
That means that any profits you earn must be at the expense of unskilled/unlucky traders. The only way you will come out ahead is if you are not one of them!
View the original article here
Anecdotally, it seems that many traders focus their trading at these hours, since the opportunities for profit (and losses, to be fair) are greatest at these times.The author of the article (Investopedia contributor Cory Mitchell) has specifically identified the opening of certain key markets (typically 9AM local time; actual time will vary based on your location). Prior to opening, the markets may appear calm before a sudden onslaught of trading activity, as banks move to establish new positions for the day, stop orders are cleared, and the market struggles to find direction. In every major market, there are a handful of currency pairs that dominate trading in that market, and that traders should pay special attention to at the open. Tokyo has the Yen; London has the Pound, Euro, and Franc; New York has the US Dollar.This confusion may create an opportunity if a so-called “fake-out” occurs. Basically, the market will suddenly lurch in one direction, and trading desks might latch (mistakenly) onto this pattern with the goal of reaping early morning profits. In some cases, this break-out will just as quickly reverse course, and a dominant trend will re-establish itself. Those who have correctly anticipated this can enter the market in the direction of the dominant trend and ride the wave in that direction as it entrenches.I like this strategy because I think it is grounded in human psychology.
Basically, it speaks to early-morning overzealousness by poor traders that is quickly overcome by broader market forces, which will re-assert themselves when opportunity resurfaces. Of course, the market is zero-sum, which means that all profits are necessarily earned at the expense of those caught trading what in hindsight was a false breakout.Of course, trading the morning fake-out is hardly this simplistic, and those that are curious to learn more would be wise to read the original article. Still, I think it offers a few convenient lessons for aspiring technical traders, and even for fundamental traders with shorter time horizons. First, understand that the market is inherently busier at some times of the day than others. Second, understand that while the trend is still your friend, there are micro-trends which may be moving in the opposite direction from the macro-trend. Third, make sure to establish stops, so that if you are unlucky enough to get caught trading in the direction of the fake-out, your losses are limited. Finally, it’s worth remembering that the forex market is inherently zero-sum. While an overall bear market is categorically impossible, so is an overall bull market.
That means that any profits you earn must be at the expense of unskilled/unlucky traders. The only way you will come out ahead is if you are not one of them!
View the original article here
Wednesday, May 25, 2011
What the Forex Markets Tell Us about Gold and Silver
All investors, regardless of stripe, must now be aware both of the bull market for gold/silver and the bear market in the US dollar. Despite all of the rhetoric, however, it seems that little is actually understood about how these two phenomena are actually connected. Ultimately, this connection (or lack thereof) has serious implications for both markets.
Many gold investors insist they are buying gold as a proxy for shorting the dollar. Commentary on gold prices is full of apocalyptic warnings about the current financial system and criticism of fiat currencies, which are backed by nothing except for good faith. They argue that buying gold is the best (or even the only) hedge against the eventual collapse of the dollar.
Unfortunately, I don’t think this argument holds up to close scrutiny. First of all, gold and silver [I am including silver in this analysis not because of any deep relationship to gold, but only because of the association ascribed by other commentators and an observable market correlation] prices have risen much faster over the last year (and decade, for that matter) than even the strongest currencies. Furthermore, gold is rising faster than the dollar is falling. In terms of the Swiss Franc – which is to forex markets as gold is to commodities markets – gold has risen more than 17% since the start of 2010.
Second, the putative correlation between gold and forex markets asserts itself sparingly (as you can see from the chart below, which plots gold against an index that shows dollar bearishness), and in difficult-to-understand ways. For example, gold stalled during the financial crisis, while the price of silver suffered a veritable collapse. Does it make sense that when financial anxiety was highest, interest in gold and silver ebbed? Along similar lines, the recent rally in the dollar followed the recent correction in gold and silver – NOT the other way around. If anything, this shows that gold investors are taking their cues from the broader commodity markets, and not from forex markets.
Third, the macroeconomic case for gold is flimsy. While I don’t think it’s fair to attack gold on political grounds, I still think it’s reasonable to try to ascertain what forces are supposedly being hedged against. If it is inflation that gold buyers are worried about, why aren’t other all investors equally concerned? Based on futures markets – whose credibility is just as solid as gold markets – inflation expectations are around 2-4% across the G7. If instead it is sovereign debt default that gold investors are concerned about, again, I have to ask why other markets don’t share their concerns. Credit default swap rates are higher for Japanese and European debt than for US Treasury securities, but the yen and euro remain positively buoyant against the dollar. Again, how do gold investors explain this contradiction?
To me, it seems obvious that gold and silver are rising for reasons that have very little to do with fundamentals. Monetary expansion has driven a wave of money into financial markets, and a significant portion of this has no doubt found its way into gold, silver, and other metals. In fact, it seems that last week’s correction was driven partly by higher margin requirements for speculators. Finally, their cause is being helped by low interest rates, since the opportunity cost of holding gold (which doesn’t pay interest) in lieu of dollars (which does) is currently close to zero. When interest rates rise, it will certainly be interesting to see if there is any impact on gold.
In the end, I don’t have a strong understanding of gold and silver markets. For all I know, their rise is genuinely rooted in supply/demand, as it should be. My only wish is that investors will stop pretending that it has anything to do with the dollar.
View the original article here
Many gold investors insist they are buying gold as a proxy for shorting the dollar. Commentary on gold prices is full of apocalyptic warnings about the current financial system and criticism of fiat currencies, which are backed by nothing except for good faith. They argue that buying gold is the best (or even the only) hedge against the eventual collapse of the dollar.
Unfortunately, I don’t think this argument holds up to close scrutiny. First of all, gold and silver [I am including silver in this analysis not because of any deep relationship to gold, but only because of the association ascribed by other commentators and an observable market correlation] prices have risen much faster over the last year (and decade, for that matter) than even the strongest currencies. Furthermore, gold is rising faster than the dollar is falling. In terms of the Swiss Franc – which is to forex markets as gold is to commodities markets – gold has risen more than 17% since the start of 2010.
Second, the putative correlation between gold and forex markets asserts itself sparingly (as you can see from the chart below, which plots gold against an index that shows dollar bearishness), and in difficult-to-understand ways. For example, gold stalled during the financial crisis, while the price of silver suffered a veritable collapse. Does it make sense that when financial anxiety was highest, interest in gold and silver ebbed? Along similar lines, the recent rally in the dollar followed the recent correction in gold and silver – NOT the other way around. If anything, this shows that gold investors are taking their cues from the broader commodity markets, and not from forex markets.
Third, the macroeconomic case for gold is flimsy. While I don’t think it’s fair to attack gold on political grounds, I still think it’s reasonable to try to ascertain what forces are supposedly being hedged against. If it is inflation that gold buyers are worried about, why aren’t other all investors equally concerned? Based on futures markets – whose credibility is just as solid as gold markets – inflation expectations are around 2-4% across the G7. If instead it is sovereign debt default that gold investors are concerned about, again, I have to ask why other markets don’t share their concerns. Credit default swap rates are higher for Japanese and European debt than for US Treasury securities, but the yen and euro remain positively buoyant against the dollar. Again, how do gold investors explain this contradiction?
To me, it seems obvious that gold and silver are rising for reasons that have very little to do with fundamentals. Monetary expansion has driven a wave of money into financial markets, and a significant portion of this has no doubt found its way into gold, silver, and other metals. In fact, it seems that last week’s correction was driven partly by higher margin requirements for speculators. Finally, their cause is being helped by low interest rates, since the opportunity cost of holding gold (which doesn’t pay interest) in lieu of dollars (which does) is currently close to zero. When interest rates rise, it will certainly be interesting to see if there is any impact on gold.
In the end, I don’t have a strong understanding of gold and silver markets. For all I know, their rise is genuinely rooted in supply/demand, as it should be. My only wish is that investors will stop pretending that it has anything to do with the dollar.
View the original article here
Tuesday, May 24, 2011
What To Search For On A Good Finance Broker
You won't be comfortable with a broker who likes to take a high-risk approach if you are extremely careful with your money, hate the idea of being in debt and don't like taking any risks with your savings.
So what shall you search for? A good finance broker should be right accredited and qualified, with great communication and analytical capabilities and have a genuine interest in the financial market. On a personal level, you need someone you can trust and feel fine with.
It's important for you and your broker to be usually on the same wavelength.
Chances are you enlist the sustain of experts to service your auto, restore your plumbing or even cut your hair, so why would you take on attending your own resources? Whether you're only starting out and interested in requesting your first home loan, or preparing for retirement, you could benefit from the help of a finance broker.
Whether you want to begin a property portfolio, invest your economies or tap into the equity of your home, a finance broker can helping you to determine your objectives and clarify the alternatives accessible to you. A great finance broker can help you set some financial goals and get long and short term strategies for accomplishing your targets.
As your financial state changes, for example if you get married, have kids or retire, your finance broker can assistance you to analyse and make suit your investment strategy. They can support you to understand the level of risk involved in your goals, and attend you in choosing the products to suit you.
Wondering how you pay for their services? Financial brokers can be paid in a number of ways. Some call in a flat hourly, monthly or annual honorarium based on the degree of investment you are doing. Others make money through commissions when you achieve products such as home loans through lenders. Brokers should also be paid a ordinary salary through the company they work for, which makes money through pays and commissions.
At best, you need a broker with a similar financial philosophy to yours who can help you along the road to achieving your financial ambitions.
View the original article here
So what shall you search for? A good finance broker should be right accredited and qualified, with great communication and analytical capabilities and have a genuine interest in the financial market. On a personal level, you need someone you can trust and feel fine with.
It's important for you and your broker to be usually on the same wavelength.
Chances are you enlist the sustain of experts to service your auto, restore your plumbing or even cut your hair, so why would you take on attending your own resources? Whether you're only starting out and interested in requesting your first home loan, or preparing for retirement, you could benefit from the help of a finance broker.
Whether you want to begin a property portfolio, invest your economies or tap into the equity of your home, a finance broker can helping you to determine your objectives and clarify the alternatives accessible to you. A great finance broker can help you set some financial goals and get long and short term strategies for accomplishing your targets.
As your financial state changes, for example if you get married, have kids or retire, your finance broker can assistance you to analyse and make suit your investment strategy. They can support you to understand the level of risk involved in your goals, and attend you in choosing the products to suit you.
Wondering how you pay for their services? Financial brokers can be paid in a number of ways. Some call in a flat hourly, monthly or annual honorarium based on the degree of investment you are doing. Others make money through commissions when you achieve products such as home loans through lenders. Brokers should also be paid a ordinary salary through the company they work for, which makes money through pays and commissions.
At best, you need a broker with a similar financial philosophy to yours who can help you along the road to achieving your financial ambitions.
View the original article here
Monday, May 23, 2011
Canada - Most Sought After Destination For the Real Estate Investor
The financial gurus as well as the real estate experts unanimously agree that Canada provides one of the best living opportunities in the world. In fact, it has become the most sought after destination for the real estate investors. Moreover, Canada real estate investing is vast and competitively priced as well as has good appreciation rate. Another major factor that attracted the foreign investors is its hassle free legal system. In fact, if you do a comparative study of real estate market in US, UK or France, you can easily realize that real estate investment in Canada is quite affordable. In fact, despite the high standard of living in Canada, the cost of living here is much lower than most of the other countries.
With the reinforcement of the Canadian economy, more and more people are migrating to the country. This is leading to a growth in the demand for properties. The real estate experts believe that this growing demand in the Canadian real estate market will also radically boost the property values in years to come. One of the biggest advantages of investing in this real estate market is that even the non-resident Canadians can property in this country.
The following are some of the factors that you need to understand before investing in the Canadian real estate markets:
Also read statistics and information about the various economic factors that may affect the market. Reading local newspaper and visiting the particular town's or provincial website can also help you to get a clear idea about its real estate market.
View the original article here
With the reinforcement of the Canadian economy, more and more people are migrating to the country. This is leading to a growth in the demand for properties. The real estate experts believe that this growing demand in the Canadian real estate market will also radically boost the property values in years to come. One of the biggest advantages of investing in this real estate market is that even the non-resident Canadians can property in this country.
The following are some of the factors that you need to understand before investing in the Canadian real estate markets:
- The rising of average incomes -This is one of the factors that you need to take into account while searching for strong real estate markets. It is a good idea to opt for places where the average gross income is increasing faster. This means that the property prices will also follow the same pattern. In fact, it is not the average income that accounts; you need to consider the rate of increase. You can invest in a real estate market even if the average income of that place is lower than the provincial average, provided the rate of the average income is increasing faster than the provincial average.
- The flow of booming markets - You can conveniently invest in a real estate market, if its neighborhoods had recently experienced a strong growth in their property values. Such increase will also have a strong impact on the surrounding areas. Though at a slower rate, these surrounding areas will also heat up eventually. This is a phenomenon that has been noticed repeatedly in surrounding areas of a booming market as well as in the neighborhoods of redeveloping and improving communities. If you follow the pattern minutely you can easily identify such real estate markets, which are about to experience such booms.
Also read statistics and information about the various economic factors that may affect the market. Reading local newspaper and visiting the particular town's or provincial website can also help you to get a clear idea about its real estate market.
View the original article here
Sunday, May 22, 2011
Personal Loan - A Means of Finance
Whatever the reason it may be you can seek a personal loan to finance your desires whether you are planning to equip your house with sophisticated furniture or thinking of buying any property or wanting to enjoy your long cherished holidays.
There are two different types of personal loan, secured personal loan and unsecured personal loan. In a secured personal loan the property which you keep should be in proportion to the amount which you want to borrow and also the circumstances is important to decide the amount of finance required. On the other hand unsecured personal loan has higher interest rates, shorter repayment term because it entails a high risk to the lenders. In case if your loan application has been turned down by the lenders the Bad credit personal loans will help you to meet your all financial goals.
Your financial burden can be made little bit easy with the personal loan provided that you look for right lender. You have hundreds of options before you put in a formal application, make sure you make the right decision at the right time and that you also save yourself time and money into the process. There are basically three steps you need to follow before you choose the loan to finance your desire. They are Know what you want secured or unsecured loan. Another choice youâ''ll need to make here is whether to take out a loan with a fixed or a variable interest rate because if you are given a fixed rate then your monthly repayment will remain the same but a variable rate, however, may see your repayments change if underlying interest rates change at any time. Stick to what you can afford-financial loan actually adds perk to the desire to borrow more than you actually need, so it is really important to avoid being impulsive. The easiest way to do this is to look at your monthly outgoings and to work out how much cash you have spare once youâ''ve met your existing financial obligations and spending for the month, leaving a bit of cash spare for emergencies. Shop around for the best deal to avoid paying a lot more than you need to, shop around for the best rates because interest rates vary widely across the industry and the easiest way to shop around nowadays is, via the Internet which will show you the big differences in the interest rates being charged.
Thus with efficient financial calculation and knowing your needs you can go for the right kind of personal loan to finance your monetary desire.
View the original article here
There are two different types of personal loan, secured personal loan and unsecured personal loan. In a secured personal loan the property which you keep should be in proportion to the amount which you want to borrow and also the circumstances is important to decide the amount of finance required. On the other hand unsecured personal loan has higher interest rates, shorter repayment term because it entails a high risk to the lenders. In case if your loan application has been turned down by the lenders the Bad credit personal loans will help you to meet your all financial goals.
Your financial burden can be made little bit easy with the personal loan provided that you look for right lender. You have hundreds of options before you put in a formal application, make sure you make the right decision at the right time and that you also save yourself time and money into the process. There are basically three steps you need to follow before you choose the loan to finance your desire. They are Know what you want secured or unsecured loan. Another choice youâ''ll need to make here is whether to take out a loan with a fixed or a variable interest rate because if you are given a fixed rate then your monthly repayment will remain the same but a variable rate, however, may see your repayments change if underlying interest rates change at any time. Stick to what you can afford-financial loan actually adds perk to the desire to borrow more than you actually need, so it is really important to avoid being impulsive. The easiest way to do this is to look at your monthly outgoings and to work out how much cash you have spare once youâ''ve met your existing financial obligations and spending for the month, leaving a bit of cash spare for emergencies. Shop around for the best deal to avoid paying a lot more than you need to, shop around for the best rates because interest rates vary widely across the industry and the easiest way to shop around nowadays is, via the Internet which will show you the big differences in the interest rates being charged.
Thus with efficient financial calculation and knowing your needs you can go for the right kind of personal loan to finance your monetary desire.
View the original article here
Saturday, May 21, 2011
Secured Loans - A Means of Finance
Do you know the factors which an individual looks while availing a loan from the financial market? It's just low interest rate and favorable terms. But, is there any source which embraces both these features? Absolutely yes, and it is known as secured loans in the financial market.
Secured loans, is one such means of finance, in which there is an obligation to place collateral against the loan amount. Here, collateral can be anything of value such as house, car, valuable bank papers etc.
Secured loans are multipurpose loan, which can be used for any personal or business purpose. There are number of different secured loans available in the financial market such as secured car loan, secured home loan, secured wedding loan and many more. These are used for their specific purpose such as secured car loan is used for buying a desired car etc.
The best part of availing secured loans is that it carries competitive rates. The reason as to why the lender offers such competitive rate is that he feels secures that if in case, an individual fails to make repayments. Then, he can still realize his amount of due payment by means of collateral placed. So, it is recommended to an individual that, he must always try to make timely repayments in order to safeguard his asset placed as collateral.
Usually, it is seen that an individual with poor credit score have to face many hurdle while procuring funds from the financial market. Fortunately they will face no hurdle while availing secured loans from the market as these are easily available to all bad credit scorers. However, it is possible that they are asked to pay bit high rates but, it can also be availed on competitive rates by placing high equity collateral. High equity collateral is regarded as the key to avail loan on competitive rates from the market.
Thus, secured loans will fulfill all your desires either it is a personal wish or need in business.
View the original article here
Secured loans, is one such means of finance, in which there is an obligation to place collateral against the loan amount. Here, collateral can be anything of value such as house, car, valuable bank papers etc.
Secured loans are multipurpose loan, which can be used for any personal or business purpose. There are number of different secured loans available in the financial market such as secured car loan, secured home loan, secured wedding loan and many more. These are used for their specific purpose such as secured car loan is used for buying a desired car etc.
The best part of availing secured loans is that it carries competitive rates. The reason as to why the lender offers such competitive rate is that he feels secures that if in case, an individual fails to make repayments. Then, he can still realize his amount of due payment by means of collateral placed. So, it is recommended to an individual that, he must always try to make timely repayments in order to safeguard his asset placed as collateral.
Usually, it is seen that an individual with poor credit score have to face many hurdle while procuring funds from the financial market. Fortunately they will face no hurdle while availing secured loans from the market as these are easily available to all bad credit scorers. However, it is possible that they are asked to pay bit high rates but, it can also be availed on competitive rates by placing high equity collateral. High equity collateral is regarded as the key to avail loan on competitive rates from the market.
Thus, secured loans will fulfill all your desires either it is a personal wish or need in business.
View the original article here
Friday, May 20, 2011
Internet Plays A Big Role In Mortgage Loans
The manner in which the home/property is being bought and sold across the nation is going through a revolution moreover the internet is playing a bigger role in it. Allowing you to buy home and compare rates from the comfort of your home without you having to move out of your house. As comparing mortgage rates on the internet is the most recent way, the bond between the borrower and the mortgage lender has altered a lot, and in this case, the transformation is certainly for the better.
In earlier times, mortgage choices were inadequate and clients were not familiar with all the plans that were available, therefore a lot approving to conditions that were less than favorable when compared to other available loans from different lenders. At the same time as, the mortgage criminals, also recognized as predatory lenders, have established a place for themselves on the internet, the comprehensive information on various mortgage products from several lenders and strict government ruling has restricted their capability to attract new borrowers significantly. Though steps have been taken by government to restrict their activities borrowers should do research and comparison-shopping to get best possible deal.
The benefits of online mortgage research and comparison-shopping are noticeable; you can contrast various plans and then get the one that best suits your present economic condition. You can ask for loan quotes simultaneously, from a number of diverse lenders and subsequently prefer the loan plan that offers you the interest rate you are ready to pay for. In view of the fact that you can carry out your investigation in the wee small hours or on public holiday as well as weekends at what time mortgage lenders are generally having a break, the simplicity with which you can obtain the details you need significantly reduces the entire time taken for a property deal to go through.
For sure, there is a negative aspect to the online mortgage trade. Similar to several other type of online site, there are the criminals who are on the lookout for to cash in on individuals who are searching for loans. A few are phishing for restricted information that could be sold to the maximum bidder at the same time as others will try to find your social security number as element of an identity theft plan. In a few instances there is the possibility that a not so famous lender might manage to lure along with use swap trick and will try to obtain your signature on the contract for a plan you would not in fact like.
Hunting for mortgages on the internet is an excellent means of informing yourself and getting replies to several queries. Watch out on details you provide and be extremely careful to whom you are ready to provide it. Make use of the internet as a means for study and for contrast shopping; in addition, if you are by any means unconvinced on the loan plans you are taking into consideration, get in touch with a neighboring mortgage broker to put in plain words your alternatives to you physically. In addition, you can obtain a mortgage quote from a reliable site like www.ratesupermarket.ca as well.
View the original article here
In earlier times, mortgage choices were inadequate and clients were not familiar with all the plans that were available, therefore a lot approving to conditions that were less than favorable when compared to other available loans from different lenders. At the same time as, the mortgage criminals, also recognized as predatory lenders, have established a place for themselves on the internet, the comprehensive information on various mortgage products from several lenders and strict government ruling has restricted their capability to attract new borrowers significantly. Though steps have been taken by government to restrict their activities borrowers should do research and comparison-shopping to get best possible deal.
The benefits of online mortgage research and comparison-shopping are noticeable; you can contrast various plans and then get the one that best suits your present economic condition. You can ask for loan quotes simultaneously, from a number of diverse lenders and subsequently prefer the loan plan that offers you the interest rate you are ready to pay for. In view of the fact that you can carry out your investigation in the wee small hours or on public holiday as well as weekends at what time mortgage lenders are generally having a break, the simplicity with which you can obtain the details you need significantly reduces the entire time taken for a property deal to go through.
For sure, there is a negative aspect to the online mortgage trade. Similar to several other type of online site, there are the criminals who are on the lookout for to cash in on individuals who are searching for loans. A few are phishing for restricted information that could be sold to the maximum bidder at the same time as others will try to find your social security number as element of an identity theft plan. In a few instances there is the possibility that a not so famous lender might manage to lure along with use swap trick and will try to obtain your signature on the contract for a plan you would not in fact like.
Hunting for mortgages on the internet is an excellent means of informing yourself and getting replies to several queries. Watch out on details you provide and be extremely careful to whom you are ready to provide it. Make use of the internet as a means for study and for contrast shopping; in addition, if you are by any means unconvinced on the loan plans you are taking into consideration, get in touch with a neighboring mortgage broker to put in plain words your alternatives to you physically. In addition, you can obtain a mortgage quote from a reliable site like www.ratesupermarket.ca as well.
View the original article here
Wednesday, May 18, 2011
Poor Credit Mortgage Loans
One of the biggest fears to individuals facing bankruptcy is that they will never again be able to obtain a mortgage loan. For those that are facing that decision, they will be relieved to discover that within one day of their bankruptcy being discharged, they will be able to obtain Poor Credit Mortgage Loans.
On the flip side of this good news, individuals with bad credit will need to understand exactly what's expected of them and that what will be available to them does not compare to what a borrower with perfect credit will be able to get. Still, the option does exist, you can get poor credit home loans.
One disadvantage to those with poor credit trying to take out Poor Credit Mortgage Loans is the fact that the lender will charge higher interest rates and charge more points than if your credit was higher. The reason for this is that lending money to borrowers with less than perfect credit carries a high risk and the company lending the money needs compensation for taking on this risk.
Finding a broker or a lender to do a bad credit home loan might take a little extra work on the part of the borrower, but it's also a good step to take to start rebuilding your credit again.
While you may think that the odds are stacked against you if your credit has taken a significant hit, the truth is there are advantages out there to help you.
You can consider a Bad Credit FHA Mortgage which is specifically designed for people with less than perfect credit. The interest rates with FHA loans are typically less expensive than what you'd find in the sub-prime market. The Bad Credit FHA Mortgage is easier to qualify for even if your credit scores are lower than normal. Also you will have a lower down payment of only 3.5% of the mortgage amount. Also you can get the down payment from other sources such as family members.
You can also go online and find help from experts in the Poor Credit Mortgage Loans industry, they are willing and able to help you find the best rate for your loan, and you will be on the road to repairing your credit and securing your future.
Don't let bankruptcy instill the fear that you will never again be able to obtain a loan of any kind. The truth is, there are many people facing this kind of decision and while it is not easy, obtaining Poor Credit Mortgage Loans is a good way to start repairing your credit.
With a little research, you will be able to find the loan that fits your needs and allows you to once more be a homeowner. There is no longer a stigma attached to bankruptcy, there are experts in the mortgage industry standing by to help you get back on track with Poor Credit Mortgage Loans.
View the original article here
On the flip side of this good news, individuals with bad credit will need to understand exactly what's expected of them and that what will be available to them does not compare to what a borrower with perfect credit will be able to get. Still, the option does exist, you can get poor credit home loans.
One disadvantage to those with poor credit trying to take out Poor Credit Mortgage Loans is the fact that the lender will charge higher interest rates and charge more points than if your credit was higher. The reason for this is that lending money to borrowers with less than perfect credit carries a high risk and the company lending the money needs compensation for taking on this risk.
Finding a broker or a lender to do a bad credit home loan might take a little extra work on the part of the borrower, but it's also a good step to take to start rebuilding your credit again.
While you may think that the odds are stacked against you if your credit has taken a significant hit, the truth is there are advantages out there to help you.
You can consider a Bad Credit FHA Mortgage which is specifically designed for people with less than perfect credit. The interest rates with FHA loans are typically less expensive than what you'd find in the sub-prime market. The Bad Credit FHA Mortgage is easier to qualify for even if your credit scores are lower than normal. Also you will have a lower down payment of only 3.5% of the mortgage amount. Also you can get the down payment from other sources such as family members.
You can also go online and find help from experts in the Poor Credit Mortgage Loans industry, they are willing and able to help you find the best rate for your loan, and you will be on the road to repairing your credit and securing your future.
Don't let bankruptcy instill the fear that you will never again be able to obtain a loan of any kind. The truth is, there are many people facing this kind of decision and while it is not easy, obtaining Poor Credit Mortgage Loans is a good way to start repairing your credit.
With a little research, you will be able to find the loan that fits your needs and allows you to once more be a homeowner. There is no longer a stigma attached to bankruptcy, there are experts in the mortgage industry standing by to help you get back on track with Poor Credit Mortgage Loans.
View the original article here
Real Estate Investing is like a Weight Loss Program
Real Estate Investing is like Weight Loss Program because both of the two takes a lot of effort on your part. It seems amazing that how many people get started in real estate investing, only to fail when the going gets rough. As soon as somebody discovers they can't get wealthy in a week or two, they are on to the next 'hidden guru' clandestine. It's the same as weight loss - everybody talks about it, many try it, but only few of them are succeed. No speculate both the real estate investing information and weight loss products industries make Money and Money!
Weight loss isn't so easy. You may ask somebody who has tried it. Though, the concept of weight loss is very fundamental i.e. burn more calories than you ingest and your body will react accordingly. Unless you have a medical chaos, this formula works for just about anybody. Simple as it may be, the formula is hard, sense it takes a lot of discipline and hard work. So, the weight loss industry has offered us more than hundreds of ways to make it easier. A lot of these solutions do work, but they only work if you put forth more effort.
Now, let's begin with the principle you don't need any of these 'solutions' to make real estate or weight loss work for you. You can eat fewer calories, go walking or jogging every day and you will lose your weight. But, having knowledge of the caloric content of dissimilar foods is pertinent.
Similar principle applies to real estate i.e. you can go out and make hundreds of offers to aggravated sellers and find a fine deal. However, having details about how to solve the seller's requirements and build an offer will help. Having a lawyer, real estate agent will assist you with constructing the offer and the official procedure will make it easier. Having advice from other people who have already completed hundreds of deals will also make it easier for you to learn from other people's achievement. However, whether it is weight loss or real estate, the bottom line does not just know, but doing well. You can't guilt the diet if you don't fix to it. Many have unsuccessful, likely because they didn't give the necessary effort, not because the plan isn't effective.
Both real estate investing dealing and weight loss program are simple, but neither is easy. It takes a lot of work. Having a verified plan helps, but only if you stick to it. It is like the people reading a book on the treadmill at the gym - if you can read a book; you're not working hard enough.
If you are not willing to take action on a huge scale, you won't get more results by buying more products. If you have the discipline to work solid and take reliable action, then products and services will help you get there faster. Whether you are looking to get wealthy or lose weight, the bottom line is you.
View the original article here
Weight loss isn't so easy. You may ask somebody who has tried it. Though, the concept of weight loss is very fundamental i.e. burn more calories than you ingest and your body will react accordingly. Unless you have a medical chaos, this formula works for just about anybody. Simple as it may be, the formula is hard, sense it takes a lot of discipline and hard work. So, the weight loss industry has offered us more than hundreds of ways to make it easier. A lot of these solutions do work, but they only work if you put forth more effort.
Now, let's begin with the principle you don't need any of these 'solutions' to make real estate or weight loss work for you. You can eat fewer calories, go walking or jogging every day and you will lose your weight. But, having knowledge of the caloric content of dissimilar foods is pertinent.
Similar principle applies to real estate i.e. you can go out and make hundreds of offers to aggravated sellers and find a fine deal. However, having details about how to solve the seller's requirements and build an offer will help. Having a lawyer, real estate agent will assist you with constructing the offer and the official procedure will make it easier. Having advice from other people who have already completed hundreds of deals will also make it easier for you to learn from other people's achievement. However, whether it is weight loss or real estate, the bottom line does not just know, but doing well. You can't guilt the diet if you don't fix to it. Many have unsuccessful, likely because they didn't give the necessary effort, not because the plan isn't effective.
Both real estate investing dealing and weight loss program are simple, but neither is easy. It takes a lot of work. Having a verified plan helps, but only if you stick to it. It is like the people reading a book on the treadmill at the gym - if you can read a book; you're not working hard enough.
If you are not willing to take action on a huge scale, you won't get more results by buying more products. If you have the discipline to work solid and take reliable action, then products and services will help you get there faster. Whether you are looking to get wealthy or lose weight, the bottom line is you.
View the original article here
Tuesday, May 17, 2011
Resources for Online Real Estate Courses
You've made the decision to move ahead in the real estate world and get your real estate license through an online course. Navigating the waters of online real estate courses can be tricky, as there are so many institutes, colleges and universities online which promise you the best education programmes. With all of the information that's available, you'll probably need some help. Here is a guide to resources for online real estate courses.
One of the best online guides to help you get started is Elearners.com. This is a great site, that is easy to navigate and fun to use. It offers extensive links to a comprehensive database, which will help you to find that online real estate course that is just right for you. The webmasters also maintain a large collection of FAQs, or Frequently Asked Questions, which will most likely answer many of the questions that you have about getting your degree online. For example, there are questions and answers regarding the types of technological requirements that are needed for online courses.
It is also very important that you verify your online school's accreditation before you officially enrol in your real estate course. This is a significant step, because you need to be sure that your college is approved to teach your real estate programme. Accreditation can be verified by several agencies, but the most reliable agency is the Distance Education Office, which will be happy to help you.
Finally, if you are relying on financial aid for online real estate courses, the Department of Education is a great place to start the application process. You can download your Free Application for Federal Student Aid, or FASFA, for short, at their website. You can also fill it out online, thus speeding up the application process.
Earning your real estate credentials through an online programme should be a rewarding and enjoyable experience and there are many great resources to help you get started.
View the original article here
One of the best online guides to help you get started is Elearners.com. This is a great site, that is easy to navigate and fun to use. It offers extensive links to a comprehensive database, which will help you to find that online real estate course that is just right for you. The webmasters also maintain a large collection of FAQs, or Frequently Asked Questions, which will most likely answer many of the questions that you have about getting your degree online. For example, there are questions and answers regarding the types of technological requirements that are needed for online courses.
It is also very important that you verify your online school's accreditation before you officially enrol in your real estate course. This is a significant step, because you need to be sure that your college is approved to teach your real estate programme. Accreditation can be verified by several agencies, but the most reliable agency is the Distance Education Office, which will be happy to help you.
Finally, if you are relying on financial aid for online real estate courses, the Department of Education is a great place to start the application process. You can download your Free Application for Federal Student Aid, or FASFA, for short, at their website. You can also fill it out online, thus speeding up the application process.
Earning your real estate credentials through an online programme should be a rewarding and enjoyable experience and there are many great resources to help you get started.
View the original article here
Monday, May 16, 2011
How To Sell Your Home Quickly Online
When selling a home, a real estate agent typically earns a six percent commission. While six percent doesn't sound that high, for a $350,000 home that's $21,000 to your agent. In an effort to save money, more and more people are turning to selling their homes without the assistance of an agent.
Until recently, individuals were at a great disadvantage due to a lack of information on the laws and traditions regarding home sales. Agents not only have years of experience, but also have access to the necessary forms. With the help of the internet, the playing field has been leveled and by-owner sales are increasing.
Keep in mind, selling your home yourself does require work. You aren't going to magically sell your home - it will take time and dedication. Everyone wants the savings, but you must decide if you are up to the task yourself. Only about 15% of homeowners sell their own homes, the other 85% percent either don't have the time, are intimidated by the process, or simply aren't interested in handling the negotiations themselves.
If you are up for the task, there are several websites geared toward for sale by owner (FSBO). A simple google search will yield several sites to choose from. One thing to keep in mind is the traffic those sites receive. Just listing your house on the internet is not enough, you must be sure people will find your listing.
These sites will not sell your home for you, hence the term for sale by owner, but they provide you with the tools you will need. They understand that you will be doing all the work the agents typically perform and provide you with the necessary education and materials.
Websites serving FSBO allow you to easily create a virtual listing with pictures and description of your home. They will also supply a sign to be put in your yard with your web listing. Buyers who are interested in your home are able to get all the information from your listing - including asking price, square footage, amenities, school districts, and in some cases they can even learn if they are qualified to buy.
By the time potential buyers contact you, they should be what is referred to as a "hot prospect". Of course this doesn't mean they will definitely buy your home, but it's better than a uniformed buyer off the street. When you do find someone interested in purchasing your home, your FSBO website will offer help with inspections, disclosures, reports, and the proper documentation. Some sites even offer assistance with escrow and closing.
When you're selling your own home, be prepared for closing once an offer is made. You need to take it to your lawyer. If you don't like the offer, don't just turn it down. Make a counter offer. Don't be afraid to negotiate in ways other than dollars and cents in a tight real estate market. Maybe you can leave the window treatments or appliances. You're better off making a few concessions than to wind up with another six months of mortgages payments on a house you no longer want to live in.
View the original article here
Until recently, individuals were at a great disadvantage due to a lack of information on the laws and traditions regarding home sales. Agents not only have years of experience, but also have access to the necessary forms. With the help of the internet, the playing field has been leveled and by-owner sales are increasing.
Keep in mind, selling your home yourself does require work. You aren't going to magically sell your home - it will take time and dedication. Everyone wants the savings, but you must decide if you are up to the task yourself. Only about 15% of homeowners sell their own homes, the other 85% percent either don't have the time, are intimidated by the process, or simply aren't interested in handling the negotiations themselves.
If you are up for the task, there are several websites geared toward for sale by owner (FSBO). A simple google search will yield several sites to choose from. One thing to keep in mind is the traffic those sites receive. Just listing your house on the internet is not enough, you must be sure people will find your listing.
These sites will not sell your home for you, hence the term for sale by owner, but they provide you with the tools you will need. They understand that you will be doing all the work the agents typically perform and provide you with the necessary education and materials.
Websites serving FSBO allow you to easily create a virtual listing with pictures and description of your home. They will also supply a sign to be put in your yard with your web listing. Buyers who are interested in your home are able to get all the information from your listing - including asking price, square footage, amenities, school districts, and in some cases they can even learn if they are qualified to buy.
By the time potential buyers contact you, they should be what is referred to as a "hot prospect". Of course this doesn't mean they will definitely buy your home, but it's better than a uniformed buyer off the street. When you do find someone interested in purchasing your home, your FSBO website will offer help with inspections, disclosures, reports, and the proper documentation. Some sites even offer assistance with escrow and closing.
When you're selling your own home, be prepared for closing once an offer is made. You need to take it to your lawyer. If you don't like the offer, don't just turn it down. Make a counter offer. Don't be afraid to negotiate in ways other than dollars and cents in a tight real estate market. Maybe you can leave the window treatments or appliances. You're better off making a few concessions than to wind up with another six months of mortgages payments on a house you no longer want to live in.
View the original article here
Saturday, May 14, 2011
Is Adjustable Mortgage Rate Right For You
With rates on fixed-rate mortgages climbing, a new focus is forming on adjustable rate mortgages (ARMs). A new survey of 112 lenders by mortgage giant Freddie Mac, found that ARMs accounted for just three percent of new home loans in early 2009, but are projected to be the preferred choice for nearly one out of 10 borrowers in 2011.
With rate spreads widening between ARMs and 30-year fixed rate mortgages (approximately 1.625 percent or more), there are consumers who could benefit from an ARM which features protective rate caps should rates rise significantly.
Mistakenly labeled subprime for the last few years, ARMs are making a comeback as an attractive option for home financing. While it’s not for everyone, it can be a viable alternative for several types of consumers who may have or are considering a traditional fixed-rate loan. Here are a few situations where consumers could benefit from an adjustable rate mortgage:
Generally, ARMs help homeowners take advantage of several years of low mortgage payments. It’s important to talk to your mortgage banker about your short- and long-term financial goals to determine if an ARM will help you achieve them. At minimum, it’s worth taking the time to review the terms offered by an ARM and fixed-rate mortgage and compare them to your lifestyle.
View the original article here
With rate spreads widening between ARMs and 30-year fixed rate mortgages (approximately 1.625 percent or more), there are consumers who could benefit from an ARM which features protective rate caps should rates rise significantly.
Mistakenly labeled subprime for the last few years, ARMs are making a comeback as an attractive option for home financing. While it’s not for everyone, it can be a viable alternative for several types of consumers who may have or are considering a traditional fixed-rate loan. Here are a few situations where consumers could benefit from an adjustable rate mortgage:
- Planning to Move – You plan on moving before you reach the adjustable rate portion of your loan. If it takes longer than expected to sell your home, you understand that you will face an adjustable rate and are financially prepared for it.
- Financially Confident – You consider yourself fiscally responsible and plan to use the savings of the ARM’s lower rate during the fixed-rate period to accomplish other goals. Your financial plan has breathing room, should the adjustable rate increase your monthly payment.
- First-Time Home Buyer – Whether you’re single or a newlywed, you want a home of your own, but are not likely to stay in your “starter” home for more than 5-7 years.
- Can’t Put Handprints in the Cement – You have a career that causes you to frequently relocate, whether it is sales, the Armed Forces, athletics, etc.
- Retirement-Bound – You are approaching the end of your working days and plan to relocate, refinance or simply pay off the remainder of your mortgage at that time.
- Facing an Empty Nest – You would like to downsize now that your children are off to college or living on their own. An ARM can help save extra money for a down payment on a home that reflects the new family dynamic.
- Rising Income – You expect to make more money within the next few years. For example, if you are completing a medical residency program, you could benefit now from a lower payment, but once you’re a doctor, the substantially higher income will help you handle a fluctuation in payment.
Generally, ARMs help homeowners take advantage of several years of low mortgage payments. It’s important to talk to your mortgage banker about your short- and long-term financial goals to determine if an ARM will help you achieve them. At minimum, it’s worth taking the time to review the terms offered by an ARM and fixed-rate mortgage and compare them to your lifestyle.
View the original article here
Friday, May 13, 2011
How Could A Government Shutdown Affect Average Mortgage Consumer
With an impending government shutdown looming, many banks and mortgage lenders fear they may not be able to close home loans that are currently in their pipeline.
These banks and lenders rely heavily on the insurance provided from the Federal Housing Administration (FHA) to help fund these loans. If there is a shut down, the FHA will not be processing any existing or insuring any new mortgages. FHA loans account for approximately 30% of all mortgages written in today’s mortgage market.
Many banks and lenders will have to fund and hold onto the loans until the government re-opens, and unfortunately, many are not willing to take that risk.
According to the Wall Street Journal, U.S. Housing Secretary Shaun Donovan states he was “very concerned that a significant number of lenders would not choose to close on those loans.” In addition, many are concerned about the ripple effect this may have on an already compromised mortgage and real estate industry.
How could the shutdown affect the average mortgage consumer? Or those planning to buy a home in the near future? A shutdown could mean a long delay in closing on your mortgage – putting you in a long line waiting for loan approval when the government does re-open. Moreover, you could run the risk of your mortgage rate lock expiring during the shutdown. At that point, you would likely have to pay either a rate extension fee or lose your lock and potentially be stuck with a higher rate than you had planned.
Fortunately for you, Quicken Loans is staying open with full operations during the government shutdown.
“Everything is business as usual, even if the government does shut down,” says Bob Walters, Chief Economist of Quicken Loans. “We will continue to take applications and close loans on all product types – including FHA and VA Loans.”
You can rest assured we will remain ready and available to close your loan quickly and with the same high-quality service that you’ve grown accustomed to with Quicken Loans.Don’t let this government shutdown affect closing your mortgage. We remain committed to helping our clients close their loans quickly and easily, without delay.
View the original article here
These banks and lenders rely heavily on the insurance provided from the Federal Housing Administration (FHA) to help fund these loans. If there is a shut down, the FHA will not be processing any existing or insuring any new mortgages. FHA loans account for approximately 30% of all mortgages written in today’s mortgage market.
Many banks and lenders will have to fund and hold onto the loans until the government re-opens, and unfortunately, many are not willing to take that risk.
According to the Wall Street Journal, U.S. Housing Secretary Shaun Donovan states he was “very concerned that a significant number of lenders would not choose to close on those loans.” In addition, many are concerned about the ripple effect this may have on an already compromised mortgage and real estate industry.
How could the shutdown affect the average mortgage consumer? Or those planning to buy a home in the near future? A shutdown could mean a long delay in closing on your mortgage – putting you in a long line waiting for loan approval when the government does re-open. Moreover, you could run the risk of your mortgage rate lock expiring during the shutdown. At that point, you would likely have to pay either a rate extension fee or lose your lock and potentially be stuck with a higher rate than you had planned.
Fortunately for you, Quicken Loans is staying open with full operations during the government shutdown.
“Everything is business as usual, even if the government does shut down,” says Bob Walters, Chief Economist of Quicken Loans. “We will continue to take applications and close loans on all product types – including FHA and VA Loans.”
You can rest assured we will remain ready and available to close your loan quickly and with the same high-quality service that you’ve grown accustomed to with Quicken Loans.Don’t let this government shutdown affect closing your mortgage. We remain committed to helping our clients close their loans quickly and easily, without delay.
View the original article here
Thursday, May 12, 2011
It’s the Right Time to Buy a Home
Fortune Magazine published a great article this week talking about how the real estate market is on its way back to recovery and wanted to share it.
We think it’s a compelling article that supports our belief that it is a great time to purchase a home due to low home prices and historic low mortgage interest rates.
While gold or stock options may be appealing, take another look at housing – it may just be the most attractive asset in the American portfolio today. Here’s why:
According to a three-decade tracking study done by Metrostudy, soon there will be a shortage of homes. Subsequently, there will also be a boost in home prices. For decades, Metrostudy had inspectors literally drive through 45,000 subdivisions from Baltimore to Sacramento to record whether each lot contained a finished house, one that’s under construction or one that had been sold. They covered 65% of the U.S. housing market.
The two most important metrics Metrostudy used to determine whether there is a surplus or shortage are the number of homes that are vacant and for sale in each city, and the number of months it takes to sell them. The results show that there is a reversal of the new-home explosion that caused the housing price decline a few years ago.
There are two factors that are helping the recovery in residential real estate:
Supporting Metrostudy’s findings, a new study by Deutsche Bank also found that In 28 out of 54 major markets, it’s now cheaper to pay a mortgage and home maintenance costs than to rent the same house. For example, in Miami, the average rent is now $1,031/month, vs. $856 it costs to have a ranch as an owner. Obviously, not every market is the same and in some states renting might still be less expensive.
Depending on where you live, the state of the real estate market may give you the best opportunity to purchase a home now, while homes are both accessible and affordable.
View the original article here
We think it’s a compelling article that supports our belief that it is a great time to purchase a home due to low home prices and historic low mortgage interest rates.
While gold or stock options may be appealing, take another look at housing – it may just be the most attractive asset in the American portfolio today. Here’s why:
- Home inventory is starting to decline.
- Buying a home is affordable.
According to a three-decade tracking study done by Metrostudy, soon there will be a shortage of homes. Subsequently, there will also be a boost in home prices. For decades, Metrostudy had inspectors literally drive through 45,000 subdivisions from Baltimore to Sacramento to record whether each lot contained a finished house, one that’s under construction or one that had been sold. They covered 65% of the U.S. housing market.
The two most important metrics Metrostudy used to determine whether there is a surplus or shortage are the number of homes that are vacant and for sale in each city, and the number of months it takes to sell them. The results show that there is a reversal of the new-home explosion that caused the housing price decline a few years ago.
There are two factors that are helping the recovery in residential real estate:
- Historic drop in new construction.
- Steep decline in prices.
Supporting Metrostudy’s findings, a new study by Deutsche Bank also found that In 28 out of 54 major markets, it’s now cheaper to pay a mortgage and home maintenance costs than to rent the same house. For example, in Miami, the average rent is now $1,031/month, vs. $856 it costs to have a ranch as an owner. Obviously, not every market is the same and in some states renting might still be less expensive.
Depending on where you live, the state of the real estate market may give you the best opportunity to purchase a home now, while homes are both accessible and affordable.
View the original article here
Wednesday, May 11, 2011
How To Improve Your Credit Score
If you thought about buying a home and during the loan application process you realized that your credit score was holding you back – don’t worry, you’re not alone! In fact, below-average credit scores are one of the most common reasons why mortgage applications are denied.
According to a survey done by the US Public Interest Research Groups, 8 out of 10 credit reports contain some kind of mistake and some of these mistakes are serious. You can often raise your credit score by disputing and fixing mistakes in your credit report by contacting the three main credit bureaus, Equifax, Experian and TransUnion.
One way to easily start monitoring your credit score is by creating a profile at Quizzle.com. What is Quizzle, you ask? It’s a free personal finance site that helps you get a better understanding of your credit and an easy way to manage your home, money and credit in one spot. You basically answer a few questions about your financial status and BOOM- you get your free instant credit report plus much more.
Quizzle also gives your credit score a grade, shows you how many points you could improve your credit by (based on your credit report) and offers tips and tools to help you raise your credit score. They help you create a budget and come up with a plan to pay off debt faster. And, if you do find a mistake in your credit report, you can dispute the information with the credit bureaus directly from your Quizzle profile.
When you create your profile, you will be pleasantly surprised to see that:
1) Creating an account is FREE – no free trials or gimmicks
2) Quizzle never asks for your Social Security Number (this is a big one because of the risk of online identity theft)
3) You only enter your credit card number when you choose to sign up for one of their products
Anyone who is interested in either improving, building or maintaining their credit score could benefit from Quizzle’s services. This is especially true if you are thinking about purchasing a new home or refinancing. So, check it out and tell us what you think!
View the original article here
According to a survey done by the US Public Interest Research Groups, 8 out of 10 credit reports contain some kind of mistake and some of these mistakes are serious. You can often raise your credit score by disputing and fixing mistakes in your credit report by contacting the three main credit bureaus, Equifax, Experian and TransUnion.
One way to easily start monitoring your credit score is by creating a profile at Quizzle.com. What is Quizzle, you ask? It’s a free personal finance site that helps you get a better understanding of your credit and an easy way to manage your home, money and credit in one spot. You basically answer a few questions about your financial status and BOOM- you get your free instant credit report plus much more.
Quizzle also gives your credit score a grade, shows you how many points you could improve your credit by (based on your credit report) and offers tips and tools to help you raise your credit score. They help you create a budget and come up with a plan to pay off debt faster. And, if you do find a mistake in your credit report, you can dispute the information with the credit bureaus directly from your Quizzle profile.
When you create your profile, you will be pleasantly surprised to see that:
1) Creating an account is FREE – no free trials or gimmicks
2) Quizzle never asks for your Social Security Number (this is a big one because of the risk of online identity theft)
3) You only enter your credit card number when you choose to sign up for one of their products
Anyone who is interested in either improving, building or maintaining their credit score could benefit from Quizzle’s services. This is especially true if you are thinking about purchasing a new home or refinancing. So, check it out and tell us what you think!
View the original article here
Tuesday, May 10, 2011
How To Take Care of Your Medical Debt
Getting sick or having a major medical condition is awful, but many people who’ve been in that situation say that the bills that follow a major illness or injury are just as bad. In fact, these can pile so high that they feel like another injury in addition to the original one. Some patients find that the stress that comes from trying to figure out how to pay for their illness makes them sick all over again.
While most people have health insurance of some sort, many only find out that theirs is not as good as they’d hoped after they’ve already been in the hospital or racked up many bills another way. That’s part of the healthcare crisis in the United States, because being under-insured could be as bad (or worse, sometimes) than not being insured at all.
Planning for emergency expenses is always the best way to avoid the situation altogether. But even the most conservative budget ninja could find herself in a medical situation that requires large amounts of money. If you find yourself in a situation where you owe more in medical bills than you can pay, don’t let the stress overwhelm you. Instead, take a deep breath, assess your situation, and follow the steps below.
Talk to the People You Owe
Before you do anything else, call the hospitals and other companies that you owe money to. Let them know your situation, and explain that you cannot pay the full amount. Be ready to demonstrate how much you make and the total of your monthly expenses, as they might need these before they can negotiate with you.
Note that making this call may have a different effect with different companies. Some are happy to work with you, and in fact reduce bills routinely for patients who cannot pay the full amount. Others may be more difficult, or may not have a standard procedure in place to deal with your situation. Give them the benefit of the doubt, though, and you may find your bills reduced drastically.
Find Out if There’s Public Assistance Available
This can vary widely based on the state you live in and even where in each state you live. However, there are many public assistance programs geared toward helping people pay off medical debt that they cannot pay themselves. Check with your hospital and other government agencies to see what’s offered in your area and what you need to do to qualify for it.
When exploring this option, be extremely careful not to go with scammers. If you use your favorite search engine for words like "debt relief" or "medical debt program", you will find hundreds of for-profit businesses, some of them not very ethical, that are only looking to make a buck off of you. Look for non-for-profit organizations or foundations driven by ethical or religious motives such as the Neighborhood Health Initiative (NHI) in Des Moines as featured by the Annie E. Casey Foundation.
Start Making Payments
Even if you cannot pay off all of your debt, start making monthly payments towards it. Ten dollars a month may not sound like much to you, and it may not be more than a drop in the bucket of what you owe, but paying it each month demonstrates your goodwill to the company you owe.
In some states, companies to whom you owe medical debt cannot pursue you for the balance as long as you’re making monthly payments. Laws on this issue can be complicated and will vary widely by state, but it’s worth looking into if you find yourself in a difficult situation.
Another option is to use a service that allows you to delay payments for a month for a fee such as Billfloat.com. This helps you delay your payments for a short time period to help you get your numbers in order.
Look at Getting a Personal Loan
Going into more debt in order to pay off debt may not make much sense the first time you think about it. However, securing a personal loan for the medical balance that you owe to medical companies may give you a chance to pay your bills, get the company or the debt collection they reported you to off your back, and let you make payments that you can afford.
Some lenders may also be more likely to give you a personal loan if they know the situation behind your debt. While you don’t want to manipulate anyone, simply stating why you need the money can let them know that you are a responsible person who pays your debts, even if you’re currently in a bad situation.
However you manage to take care of your medical debt, don’t just ignore it. It’s easy to feel overwhelmed, especially if you’re still recovering from the illness or injury that caused the debt in the first place. Medical debt won’t go away on it’s own, though, and it’s usually easier to deal with it before you’re reported to a collections agency. So take a deep breath and get started today. The sooner you find a solution, the sooner you can stop worrying about it.
View the original article here
While most people have health insurance of some sort, many only find out that theirs is not as good as they’d hoped after they’ve already been in the hospital or racked up many bills another way. That’s part of the healthcare crisis in the United States, because being under-insured could be as bad (or worse, sometimes) than not being insured at all.
Planning for emergency expenses is always the best way to avoid the situation altogether. But even the most conservative budget ninja could find herself in a medical situation that requires large amounts of money. If you find yourself in a situation where you owe more in medical bills than you can pay, don’t let the stress overwhelm you. Instead, take a deep breath, assess your situation, and follow the steps below.
Talk to the People You Owe
Before you do anything else, call the hospitals and other companies that you owe money to. Let them know your situation, and explain that you cannot pay the full amount. Be ready to demonstrate how much you make and the total of your monthly expenses, as they might need these before they can negotiate with you.
Note that making this call may have a different effect with different companies. Some are happy to work with you, and in fact reduce bills routinely for patients who cannot pay the full amount. Others may be more difficult, or may not have a standard procedure in place to deal with your situation. Give them the benefit of the doubt, though, and you may find your bills reduced drastically.
Find Out if There’s Public Assistance Available
This can vary widely based on the state you live in and even where in each state you live. However, there are many public assistance programs geared toward helping people pay off medical debt that they cannot pay themselves. Check with your hospital and other government agencies to see what’s offered in your area and what you need to do to qualify for it.
When exploring this option, be extremely careful not to go with scammers. If you use your favorite search engine for words like "debt relief" or "medical debt program", you will find hundreds of for-profit businesses, some of them not very ethical, that are only looking to make a buck off of you. Look for non-for-profit organizations or foundations driven by ethical or religious motives such as the Neighborhood Health Initiative (NHI) in Des Moines as featured by the Annie E. Casey Foundation.
Start Making Payments
Even if you cannot pay off all of your debt, start making monthly payments towards it. Ten dollars a month may not sound like much to you, and it may not be more than a drop in the bucket of what you owe, but paying it each month demonstrates your goodwill to the company you owe.
In some states, companies to whom you owe medical debt cannot pursue you for the balance as long as you’re making monthly payments. Laws on this issue can be complicated and will vary widely by state, but it’s worth looking into if you find yourself in a difficult situation.
Another option is to use a service that allows you to delay payments for a month for a fee such as Billfloat.com. This helps you delay your payments for a short time period to help you get your numbers in order.
Look at Getting a Personal Loan
Going into more debt in order to pay off debt may not make much sense the first time you think about it. However, securing a personal loan for the medical balance that you owe to medical companies may give you a chance to pay your bills, get the company or the debt collection they reported you to off your back, and let you make payments that you can afford.
Some lenders may also be more likely to give you a personal loan if they know the situation behind your debt. While you don’t want to manipulate anyone, simply stating why you need the money can let them know that you are a responsible person who pays your debts, even if you’re currently in a bad situation.
However you manage to take care of your medical debt, don’t just ignore it. It’s easy to feel overwhelmed, especially if you’re still recovering from the illness or injury that caused the debt in the first place. Medical debt won’t go away on it’s own, though, and it’s usually easier to deal with it before you’re reported to a collections agency. So take a deep breath and get started today. The sooner you find a solution, the sooner you can stop worrying about it.
View the original article here
Monday, May 9, 2011
What Do You Really Pay in Taxes Over Your Lifetime?
The following is a guest post from Richard Barrington who writes for MoneyRates.com about financial topics including bank rates. His opinions do not necessarily reflect those of Quicken Loans.
Sometimes, the biggest expenses turn out to be the ones you pay little by little over a long period of time. These expenses come out of your wallet incrementally, so they may not seem so bad from paycheck to paycheck, but when you add up all the charges, the result can be shocking. A perfect example: your lifetime tax bill.
According to an analysis by MoneyRates.com, even if you earn an average income over the course of your lifetime, your federal tax bill could total in the hundreds of thousands of dollars. If you are lucky enough to earn a six-figure income, then you might be looking at a million-dollar lifetime tax bill. Something to think about as you take a look at 2011 income tax brackets.
Your lifetime tax bill: crunching the numbers
Of course, there are dozens of variables that will determine your lifetime tax bill, but a straightforward example is a good place to start for illustration purposes. Assume a single person using standard exemptions and deductions, and earning an average wage. According to the Bureau of Labor Statistics, the average income across all occupations in the U.S. is $43,460. Under the circumstances described, this taxpayer would have a tax bill of $4,713 on a 2010 federal tax return.
Project that over the course of a 40-year career, and this taxpayer would be looking at a lifetime tax bill of $188,520. Of course, no one earns the exact same amount over the course of 40 years, but the assumption here is that this taxpayer earns a career average of $43,460, so that lower wages in the early years are balanced out by higher wages in the later years.
Of course, one other reality to take into account is inflation. Applying a 3 percent annual inflation rate to the tax liability gives this average earner a lifetime tax bill of $355,366.
Now assume that you are fortunate enough to earn an average of $100,000 (in today’s dollars). Using the same background assumptions, this would give you a 2010 tax bill of $19,098. That would create a lifetime tax bill of $763,920, or $1,440,013 when adjusted for inflation.
That’s your federal tax bill. Depending on where you live, you may be paying even more when state and local taxes are taken into account. Imagine if you were able to save just a little more on your taxes each year and put this money into your savings account. Over a 40 year period, this could also amount to a significant sum.
3 tips for living with taxes
If the prospect of a million-dollar tax bill gets your blood pressure up, try these three basic tips for managing your tax liability:
Finally, while the size of your lifetime tax bill can and should make you intolerant of government waste, it is also worth thinking of the valuable services you get from the government. If you imagine the cost of trying to replicate those services out of your own pocket, the size of your tax bill may not seem like such a bad deal after all.
View the original article here
Sometimes, the biggest expenses turn out to be the ones you pay little by little over a long period of time. These expenses come out of your wallet incrementally, so they may not seem so bad from paycheck to paycheck, but when you add up all the charges, the result can be shocking. A perfect example: your lifetime tax bill.
According to an analysis by MoneyRates.com, even if you earn an average income over the course of your lifetime, your federal tax bill could total in the hundreds of thousands of dollars. If you are lucky enough to earn a six-figure income, then you might be looking at a million-dollar lifetime tax bill. Something to think about as you take a look at 2011 income tax brackets.
Your lifetime tax bill: crunching the numbers
Of course, there are dozens of variables that will determine your lifetime tax bill, but a straightforward example is a good place to start for illustration purposes. Assume a single person using standard exemptions and deductions, and earning an average wage. According to the Bureau of Labor Statistics, the average income across all occupations in the U.S. is $43,460. Under the circumstances described, this taxpayer would have a tax bill of $4,713 on a 2010 federal tax return.
Project that over the course of a 40-year career, and this taxpayer would be looking at a lifetime tax bill of $188,520. Of course, no one earns the exact same amount over the course of 40 years, but the assumption here is that this taxpayer earns a career average of $43,460, so that lower wages in the early years are balanced out by higher wages in the later years.
Of course, one other reality to take into account is inflation. Applying a 3 percent annual inflation rate to the tax liability gives this average earner a lifetime tax bill of $355,366.
Now assume that you are fortunate enough to earn an average of $100,000 (in today’s dollars). Using the same background assumptions, this would give you a 2010 tax bill of $19,098. That would create a lifetime tax bill of $763,920, or $1,440,013 when adjusted for inflation.
That’s your federal tax bill. Depending on where you live, you may be paying even more when state and local taxes are taken into account. Imagine if you were able to save just a little more on your taxes each year and put this money into your savings account. Over a 40 year period, this could also amount to a significant sum.
3 tips for living with taxes
If the prospect of a million-dollar tax bill gets your blood pressure up, try these three basic tips for managing your tax liability:
- Give your tax return the care and attention it deserves. Given the amount of money at stake, maybe dashing through it at the last minute isn’t the best strategy. Take time to check your tax return for errors and commonly missed income tax deductions.
- Keep thorough records. Medical, educational, and charitable payments are prominent examples of expenses that may be deductible, so hang on to those receipts.
- Make the most of retirement plan deductions. IRAs and employer-sponsored plans can allow you to defer taxes until retirement, and this can mean paying a lower tax rate when you eventually realize that income.
Finally, while the size of your lifetime tax bill can and should make you intolerant of government waste, it is also worth thinking of the valuable services you get from the government. If you imagine the cost of trying to replicate those services out of your own pocket, the size of your tax bill may not seem like such a bad deal after all.
View the original article here
Sunday, May 8, 2011
What is a Short Sale?
Recently the term “short sale” has become increasingly common among home buyers. This isn’t really surprising since they allow you to buy a home at a great price and you can also take advantage of mortgage rates that are still down near historic lows.
So, what is a short sale? In this article you will find a brief explanation of the process.
A short sale in the real estate industry is when the sales proceeds of a property fall short of the balance on the mortgage loan. In other words, the seller of the property owes more than what he or she is selling it for.
The mortgage lender (or bank) also has to agree to discount a loan balance or agree to take less money that what is owed. Typically the owner needs to prove financial hardship before a lender accepts a real estate short sale.
Even though this is not the ideal situation for the owner, it is a much better option than going into foreclosure because a short sale typically doesn’t hurt the owner’s credit score as much as a foreclosure.
This is a very good question. If you think about it, why would a lender agree to accept less money than what is owed on the mortgage? This is exactly what happens with short sales.
If the owner decides to stop making payments altogether and lets the property go into foreclosure, it could take several months for a bank or lender to take the property back. After the lender takes control of the property, they still have to put the house on the market and it could take months before a house gets sold. Foreclosure is a very expensive process and it is one of the reasons why banks would rather short sell than to go through a foreclosure.
Long processHomes are sold “As-is”The seller can make changes that affect you (like stop making mortgage payments forcing the home into foreclosure.Risk of getting your offer rejected by the lender
We found an interesting article on MSN Real Estate that listed the 10 steps of buying a short sale:
Identify potential short sales.
Do a quick inspection of the property.
Research home values in the area.
Find all liens and mortgages.
Figure out the financing.
Contact the lender through an experienced real estate agent.
Complete the lender’s short sale application.
Assemble the proposal.
Negotiate.
Seal the deal.
View the original article here
So, what is a short sale? In this article you will find a brief explanation of the process.
A short sale in the real estate industry is when the sales proceeds of a property fall short of the balance on the mortgage loan. In other words, the seller of the property owes more than what he or she is selling it for.
The mortgage lender (or bank) also has to agree to discount a loan balance or agree to take less money that what is owed. Typically the owner needs to prove financial hardship before a lender accepts a real estate short sale.
Even though this is not the ideal situation for the owner, it is a much better option than going into foreclosure because a short sale typically doesn’t hurt the owner’s credit score as much as a foreclosure.
This is a very good question. If you think about it, why would a lender agree to accept less money than what is owed on the mortgage? This is exactly what happens with short sales.
If the owner decides to stop making payments altogether and lets the property go into foreclosure, it could take several months for a bank or lender to take the property back. After the lender takes control of the property, they still have to put the house on the market and it could take months before a house gets sold. Foreclosure is a very expensive process and it is one of the reasons why banks would rather short sell than to go through a foreclosure.
Long processHomes are sold “As-is”The seller can make changes that affect you (like stop making mortgage payments forcing the home into foreclosure.Risk of getting your offer rejected by the lender
We found an interesting article on MSN Real Estate that listed the 10 steps of buying a short sale:
Identify potential short sales.
Do a quick inspection of the property.
Research home values in the area.
Find all liens and mortgages.
Figure out the financing.
Contact the lender through an experienced real estate agent.
Complete the lender’s short sale application.
Assemble the proposal.
Negotiate.
Seal the deal.
View the original article here
Friday, May 6, 2011
Budgeting Can Improve Your Life
Budgeting is helpful for obvious reasons, but did you know it can do more than help you count your pennies? It's true, and a budget can actually improve your life in other ways. It can reduce stress, improve your marriage, help you retire early or put your kids through college, and much more. Sure, it isn't all that fun to sit down and create a budget for the first time, but it can clearly pay for itself in short order.
View the original article here
View the original article here
Credit Basics
Borrowing money has become a part of life for most people. Unless you're sitting on a tremendous cash reserve, you'll need to borrow money to buy a home. If your car dies and you need a new replacement, you will probably finance some of the purchase. And with out of control college tuition costs a student loan might be the only option for getting an education. Taking on some debt isn't a bad thing as it's just a financial tool that helps you reach your goals. But like any tool, if it is misused you could find yourself doing more harm than good.
Understanding when borrowing money is appropriate, how your credit score is calculated, and where to go for help is important if you want to keep your money save.
View the original article here
Understanding when borrowing money is appropriate, how your credit score is calculated, and where to go for help is important if you want to keep your money save.
View the original article here
Thursday, May 5, 2011
Find a Good Auto Insurance Policy
Auto insurance is very important and can account for a sizable portion of your monthly budget. Depending on many factors such as how many vehicles you have, your driving record, and age, auto insurance can run into the thousands of dollars per year. Even though the cost of the policy is important, it is also important to make sure you're adequately covered. You might think that you're doing a good thing by saving a few bucks a year opting for less coverage, but it can come back to haunt you in the event of an accident. Learn how to find the best auto insurance policy to meet your needs.
View the original article here
View the original article here
Tuesday, May 3, 2011
How Much Insurance You Need
Life insurance is an important aspect of any financial plan when others rely on your income. As important as it is, many people go completely uninsured, and others are wasting money on far more insurance than they really need. There is no right or wrong answer to how much insurance you need as your values and goals will ultimately determine what is right for you. Here's a quick guide to help you get started in the right direction.
View the original article here
View the original article here
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