The pros and cons of different types of loans

Understanding Why Mortgage Interest Rates Vary

Posted by on Mar 30, 2016 in Uncategorized | Comments Off on Understanding Why Mortgage Interest Rates Vary

Whether you are a first-time home buyer or have purchased a home previously, understanding why interest rates vary can seem confusing. But how much you pay in interest definitely affects how much your mortgage payment will be each month. Therefore, it helps to know what goes into a mortgage rate and why they vary. Why Rates Vary by Borrower There is no set mortgage rate for every borrower who applies for a mortgage loan. Lenders may advertise competitive rates, but the rate you actually pay will depend on your: Credit score Income Debt-to-income ratio (monthly debt payments compared to your gross monthly income) Loan-to-value ratio (loan amount divided by the home’s value) Lenders also consider the amount of money you want to borrow, the type of home you want to buy (e.g. single- or multiple-dwelling), and how much of a down payment you can make when offering you a mortgage interest rate. Whether you pay points will affect the interest rate as well. A lender generally offers you a lower interest rate if you pay points (1 point equals 1 percent of the loan amount). Points are a fee you can pay at closing to lower your monthly mortgage payment. The lower the mortgage interest rate a lender offers you, the lower your monthly mortgage payment will be. Why Rates Vary by Lender Mortgage rates vary by lenders who are competing against each other for your business. Even FHA rates vary among lenders. Some mortgage lenders focus on offering the lowest rates; other may charge higher interest rates in exchange for exemplary customer service or a trusted name in banking. Since you can choose from a wide variety of banks, credit unions, and other mortgage lenders, there is no need to get only one quote. Chances are that not shopping interest rates or requesting quotes from more than one lender will cost you money because you may be paying more than you have to pay. The interest rates on home mortgage loans can change from one day to the next. But even a rate that is a fraction of a percent lower can save you money each month – not to mention over the lifetime of the loan. For instance, if a lender offers you a fixed interest rate of 4.50 on a mortgage loan for $150,000 over a 30-year term, your monthly mortgage payment will be $760.03 However, if another lender offers you a rate of 4.25 on the same loan amount, the payment will $737.91 a month. You will save $22.12 a month, yielding an annual savings of $265.44. Why Rates Vary by State Since each state has its own laws governing mortgage loans, mortgage interest rates also vary by state. In some states, including Alabama, New Jersey, Pennsylvania, Texas, and Vermont, mortgage lenders aren’t allowed to charge borrowers prepayment penalties. Other states limit the amount of the penalties lenders can charge. Also, in states with Homestead laws, mortgage lenders are prohibited from charging certain loan fees. Therefore, in cases like these, to make a profit and reduce the risk involved, lenders often charge higher interest rates. For more information, contact Premium Mortgage Corp or a similar...

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Paying Installment Loans Early Or On Schedule

Posted by on Feb 15, 2016 in Uncategorized | Comments Off on Paying Installment Loans Early Or On Schedule

If you’ve taken out a loan, the infusion of cash into your life can be very welcome. But that also means that now you’ve got these monthly payments to make. Even if the payments are easy for you to afford, seeing the extra cash flow out of your account every month can be tiresome, leading you to try to pay the loan off early. However, sometimes paying the loan back early isn’t the best thing to do. Here’s a look at how paying the loan back early or paying it as scheduled can affect you, and which strategy might be better for you. Paying as Scheduled Paying the loan installments as scheduled may have a greater effect on your credit score if the installment loan shows up on your credit report. Paying the loan on time, of course, is most important. But the longer you have to pay the loan back, the more on-time payments will show up on your credit report, and that means you’ll have a longer record of payment to raise your score. You can certainly see good effects on your score by paying the loan early in a few large installments, but more installments prolong the effect. If you’re hoping to get a good boost for your credit score from the loan, you may want to make payments as scheduled rather than early. Paying the installment loan as scheduled instead of early also means you’ll be able to retain more money in your bank account from the start of the repayment schedule. If you’re paying as scheduled, obviously you’d be paying a smaller amount of money each month than you would be if you were trying to pay the loan off early. You can use the money left in your account for emergency savings immediately. If you were to make bigger payments to pay off the loan early, then that extra money would be unavailable to you should an emergency occur. If the loan is large and making larger payments wouldn’t pay off the loan in a very short time (a few months, for example) — especially if you don’t have much of an emergency fund to begin with — you may be better off paying as scheduled, at least until you can get a decent emergency fund built up. Paying the Loan off Early On the flip side of that, though, is the fact that if you pay off the loan early, you free up even more cash in your budget at an earlier date. For loans that are small or that you could pay off in a very short time with larger payments, paying early would be best, especially if you already have an emergency fund. Paying the loan off early means you have one less payment taking money out of your account. Plus, if you pay the loan off early, you will end up paying less in interest in most cases. Your interest rate likely won’t change, but fewer payments means fewer opportunities for the lender to gather interest. Note that this depends on the type of installment agreement you set up; some agreements have a set number of payments with a final amount that does not change if you make any payments early. But if you can reduce the amount of...

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3 Things To Keep In Mind When Considering A VA Home Loan

Posted by on Jan 8, 2016 in Uncategorized | Comments Off on 3 Things To Keep In Mind When Considering A VA Home Loan

A VA home loan is a great resource for any current military personnel and individuals who have been honorably discharged, medically discharged, or who simply decided to retire. Listed below are just three things to keep in mind when considering a VA home loan. Entitlement Limitations One of the biggest things to keep in mind when looking at a VA home loan is that there are going to be limitations to the entitlement that you receive. When you are eligible for a VA home loan, you will be given a single entitlement that you can use to purchase or build a home. However, this does not mean that you cannot get your entitlement back in order to purchase or build a second home.  If you want to utilize a VA home loan again, you will need to pay off the property that you purchased with your initial loan and still own that property. In addition, your entitlement can still be used if you have a remaining balance. For example, if you had an entitlement amount of $50,000 and only used half of it, you can still utilize the remainder to buy another property.  Property Limitations Another thing to keep in mind is that a VA home loan is only going to be available for certain types of property. For example, you cannot utilize a VA home loan to purchase a vacation home or secondary home for you or your relatives. The home must be used by for occupancy by you or your spouse. This is useful for active military personnel who want a house for retirement but are still going to be required transfer to new duty stations. In that situation, your spouse can occupy the home while you go to your new duty station. Eligibility Finally, you will want to keep in mind that there are a variety of eligibility requirements. For example, not every branch of service is eligible for one of these loans. In most cases, a member of the National Guard or the Reserves will not be eligible for a VA home loan unless their units were activated. While you are going to be eligible for a VA home loan as long as you are currently in the military, that eligibility will change when you leave the military. If you retire or are discharged, you will need to contact a VA home loan provider in order to determine if you are still eligible and for how long. In many cases, the type of discharge and the amount of time that you spent in the service will affect how long you remain eligible for a VA home loan once you leave the service. Contact a VA home loan specialist or lender today in order to discuss the many benefits provided by one of these loans. However, you will want to make sure that you keep in mind the eligibility requirements, entitlement limitations, and property limitations in order to make the applications as easy as possible for...

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Alternative Home Repair Loans for Borrowers Who Are “Upside Down” on Their Mortgages

Posted by on Nov 24, 2015 in Uncategorized | Comments Off on Alternative Home Repair Loans for Borrowers Who Are “Upside Down” on Their Mortgages

Some of the people hardest hit by the recent recession are those who received mortgage loans with high interest rates and then lost their jobs. Although the recovery has been painfully slow for most people who managed to keep their homes through programs like HAMP (Home Affordable Modification Program), many are faced with bigger challenges. These challenges come in the form of home repairs, which they cannot afford but need to complete. Otherwise their homes are a total loss due to water damage, fire/smoke damage, wind damage, and other structural and functional safety issues. If this sounds like your situation, there are more loans and financing programs that can help. Loan Programs for Home Repair from Home-Building Charities A recent addition to the services that home-building charities provide, homeowner’s renovation loans and project loans help current homeowners repair and care for their homes with no-interest to very-low-interest loans. The charities act as a cosigner on a loan with you, backing you when you need a loan that you cannot get yourself. In some cases you not only get a loan, but you may also be referred to a contractor to help you with the repairs on your home. Your City’s Community Renovation Project Many cities have a community renovation and refurbishment chapter in their city government. You will have to fill out a lengthy application and provide proof of income and proof of financial hardship. These programs may also require or request a credit check, since many of these programs also act as cosigners on home equity loans with the banks. If you do not have any equity in your house just yet, you can apply to other programs offered by your city’s housing authority, which may be able to help you complete repairs. Homelessness Prevention Programs There are also several homelessness prevention programs that provide nontraditional loans with affordable repayment terms. These loans help people who need to fix their homes or run the risk of becoming homeless. (Because structural issues, safety issues, and heating issues are all things that need to be repaired or the home is deemed “unlivable,” it can put many homeowners out of their homes and onto the streets or in homeless shelters even though, technically, they have a home.) This type of loan program is most effective for homeowners that have tried everything else and applied to everything else and have been denied on all accounts. To see what type of loan you might qualify for, speak with a representative from an establishment like Weyco Community Credit...

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Three Disadvantages Of VA Financing

Posted by on Oct 20, 2015 in Uncategorized | Comments Off on Three Disadvantages Of VA Financing

Assuming you qualify for a Veterans Administration loan, there are a few drawbacks to them. In general, these drawbacks are not significant enough to decide against VA financing nor will they make a regular commercial mortgage more attractive, but they should be kept in mind when getting a VA loan. There is a funding fee Most people who qualify for a VA loan are familiar with the advantage of not having to pay a down payment. Although this sounds great, people are caught off guard when they learn about the funding fee. This fee is only accessed one time, and is based upon a percentage of the selling price as well as your military category. The good news is that you can combine this fee with your financing, so you can still buy your house without any money upfront. There are also certain people who are eligible to have this funding fee waived. There are limits to the price of the house Depending upon the state and county you live in, there are limits to how much debt the government will guarantee. These limits are especially important for buyers who have no down payment. In addition, you need to keep in mind that these limits are based upon your income, asset to debt ratio and your credit. It is possible that the maximum financing amount you qualify for will be lower than the maximum allowed in your area. It is best to find out what the maximum price for a house will be for a VA loan for your personal finances and area before you begin to shop for your new house. Not every seller will accept VA financing This can be a problem when shopping for a house. Sometimes a seller will not want to bother with an offer with VA financing because of ignorance. Sellers think they are dealing with the government, when in fact, they are dealing with a private mortgage company that has guarantees from the federal government. However, it is true that the appraisal must be done by an agent approved by the government, and the appraisal may be lower than what the seller desires. Once this happens, a seller may turn down all offers with VA financing. Your best course of action is to make sure a real estate agent only shows you houses that will accept offers with VA financing. Also, keep in mind that the tighter the supply of houses is in your area, the more likely a seller will not bother with an offer tied to VA financing. As long as you keep the above disadvantages in mind, a VA loan is generally a good idea. If you qualify for this type of loan, it is because you or your loved one has earned it, and you should take advantage of this benefit. Get a free VA loan quote...

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What You Should Know About Selling Dental Gold

Posted by on Sep 9, 2015 in Uncategorized | Comments Off on What You Should Know About Selling Dental Gold

If you have dental gold lying around and are in need of some quick cash, you might want to sell it. You may have a few gold fillings that fell out, and you held onto that gold just in case. Now is the perfect time to sell it to local gold buyers. Here is more information about selling your dental gold. Types of Dental Gold The first thing to know is that there are many types of dental gold. Just because you don’t have a gold tooth to sell doesn’t mean you don’t have dental gold to sell and earn some money. Any type of tooth restoration that fell out or you switched with another material can be sold. If you have a gold filling and later decide to go with a tooth-colored filling, ask the dentist if you can keep the gold filling. This can be added to your other gold items to be sold. Other types of dental gold include crowns, inlays and onlays, sweeps, and bridges. Porcelain restorations that were fused with gold might also be worth some money. Finding Out the Value When you put all your dental gold together, you need to figure out what the approximate value is. It helps to know about what it is worth before you find a local gold buyer. This gives you a rough estimate to use when you negotiate a price with the gold buyer. It lets you know if the buyer is trying to lowball you as well, which will be a good reason to find a different buyer. If you want to know how much the gold is worth, you need to know three basic things: the type of gold, the weight of the gold, and the current gold value. The market value of gold is based on an ounce, which is why you need to know the weight of the gold you are selling. The type of gold includes whether it is pure gold and if it is 14k or 18k gold. If the gold restoration was combined with silver or palladium, it is going to cost less. Selling the Gold Gold buyers will buy all types of gold, including dental gold. Many of them aren’t picky about the form of gold since much of it is melted down to be made into jewelry items or sold as bullion. In addition to your dental gold, you can also sell other gold items you have, such as jewelry or gold coins. The value is the same with most gold items, going based on the type of gold, its weight, and the gold prices. Keep in mind that while you don’t want a buyer to rip you off, you will still be paying less than what it’s worth. The buyer also needs to make a profit. However, don’t be afraid to negotiate. For more information, contact Wimpey’s Pawn Shop or a similar...

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Bailing Someone Out: 2 Collateral Options You Can Use

Posted by on Jul 1, 2015 in Uncategorized | Comments Off on Bailing Someone Out: 2 Collateral Options You Can Use

If you find yourself needing to bail someone out of jail, you must determine which collateral works best for your situation. Depending on the state you live in, you may have more options available to use. By taking some time to research and know your options, you will have a better chance at choosing the right collateral method. Here is a basic overview of two possibilities. Personal Property One collateral option you have is to use a vehicle such as a car, RV or boat as collateral. Another option is to use personal property. Most states accept land as collateral, and it does not have to have a structure on it. With this option, you use the value of the land as the bail money. You are securing the bail amount with the value of the property. However, it is important to note that in some states you cannot use property that is not already paid for in full. This means that if you still make monthly payments to a bank, then the courts may not allow you to use this as a means of paying for someone’s bail amount. Surety Bond Another collateral option is a surety bond. Now, on the surface this can seem a little confusing. However, once you know the basic principles of a surety bond, it will be easier to understand. With a surety bond, there are three different parties involved. One party is the person you are bailing out and the second one is the judicial system. The third party involved is the bondsman that pays the bail and insures the courts that individual will show up to the appointed court date. The money the bondsman uses is your collateral. It is their money on the line and you agree to pay them back if the individual fails to appear at court. Depending on the state you live in, the fee that the bondsman charges can range from a small percentage to a larger fee. You also need to be aware that this fee is non-refundable, even if the person shows up to all of their court dates. One benefit of using this method is that the bondsman can make the bail process easier to understand. They will explain their payment amounts and walk you through the entire bail-out process from filing the paperwork to getting the person out of jail. These are some of the more common collateral methods for bailing someone out of jail. Before you make a decision, it is best to know your options and choose the right one for your personal situation. Contact a professional business, like All Night & Day Bailbonds, for more...

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Structured Settlements: Things To Consider When Contemplating The Sale Of Your Payments

Posted by on May 14, 2015 in Uncategorized | Comments Off on Structured Settlements: Things To Consider When Contemplating The Sale Of Your Payments

Many investment firms now offer you the ability to turn your structured settlement payments into a lump sum payment by selling your rights to collect future payments. If you are trying to decide whether or not a settlement buyout is right for you, taking the time to consider the factors outlined below can help you to make this important decision: Inflation Many people worry about selling their structured settlement payments due to the fact that these payments are not bought at face value, but rather purchased for a percentage of their total value. However, the fact is, you may not be losing quite as much money as you think you are buy choosing to let an investment firm buyout your future payments. This is because when calculating just how much money you will really get in the way of future payments, you must consider the impact that inflation will have on these payments. Unfortunately, structured settlements do not take into account the impact that inflation can have on a dollar. Consequently, while the cost of living may rise dramatically over the course of the next 10 years or more, the size of your monthly payments will remain the same. So while you may be able to pay your entire rent with your monthly payment right now, you may find that this same payment only covers half the rent in the future. By choosing to sell your payments for a lump sum, you will have the ability to make the most of your money at its current value rather than waiting for inflation to deflate its value. Partial Payments People often believe that its all or nothing when it comes to selling structured settlements. However, this is not the case. While you can choose to sell off all of your future payments, you can also choose to sell only a portion of these payments. By choosing to sell a portion of your future payments, you will be able to take advantage of all the benefits that come along with receiving a lump sum of cash. For instance, you can use this money to purchase a home, buy a car, or make an interest bearing investment. However, you will also be able to enjoy the benefits of knowing that you have some income coming in each month even if you were to lose your job or other income sources. For many people, this option proves to offer the best of both worlds. For help understanding structured settlement buyouts, contact a...

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Are You a Good Candidate for a Payday Loan?

Posted by on Apr 30, 2015 in Uncategorized | 0 comments

Are you thinking about taking out a payday loan, but want to make sure it’s the right option for you? If so, then you might be wondering what generally makes a person a viable candidate for a payday loan. And while there’s no universal, guaranteed criteria for taking out a payday loan, the following are a few signs that taking out such a loan may be a good option for you. You Have a Financial Emergency Is your rent due this week, but you don’t get paid until next week? Has your car broken down and you need to get it fixed as soon as possible so you can get to work or take your kids to school? If so, then you have a legitimate financial emergency, and a payday loan may be a good way to get the money you need to cover your expenses until your next check. If you just want some extra cash for clothes or general spending money, you don’t have a financial emergency and a payday loan is probably not necessary nor a responsible option. You Have a Stable, Predictable Income Furthermore, you should only consider the option of taking out a payday loan if you know what your next paycheck amount will be, when you’ll receive it, and you’re sure that it’ll be enough to repay your loan (along with any interest or fees associated with it). If your income isn’t very predictable or you don’t have a guaranteed pay schedule (such as is the case with many freelancers and contractors), then you’ll want to think long and hard before you decide to take out a payday loan. You Don’t Have the Time (or Credit) for a Bank Loan Finally, if you’re in a situation where you need cash fast and don’t have time to go through the process of getting approved for a traditional bank loan, a payday loan might be right for you. The same goes for if you have less than ideal credit history. Most payday lenders can have you approved on-the-spot without the need for a credit check, and many can get you the money you’ve been approved for within just a couple of business days. These are just a few signs that you may be a viable candidate for an online payday loan. However, to make a well-informed decision, you’ll need to carefully assess your specific financial...

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