The Top 5 Reasons to Buy a Home
November 13, 2007
1. Save on your income tax.
Yes, something good can come out of income tax. Due to income tax deductions, the government subsidizes your home purchase. Therefore all of the interest and property tax you pay throughout the year can be deducted from your gross income tax. A nice perk.
2. A Hidden Savings Account.
If you are anything like me, you can’t save money to save your life. Seriously, my fiancee covers all of that, thank God. With being a home owner you actually save money two ways :
Each month a portion of your payment goes towards the principal, so not much at first but after 20 or so years, well you do the math. It will add up.
Homes (if properly kept) appreciate in value. Again not much at first but the average appreciation value is roughly 5 - 6 percent. This by the way is per year. It is said owning a home is one of the very best financial decisions to make.
3. Your monthly payment is fixed.
Lower Your Credit Card Interest Rate Now!
November 12, 2007
With today’s credit card companies, there are many opportunities to get your cards rate of 21% or more reduced. The higher the amount of interest your card charges will cost you more for a simple purchase and ultimately may take you years to pay off instead of months, should you make the minimum payment allowed. People often just pay the minimum balance as a way to improve their credit rating; this couldn’t be a more dangerous way to increase your credit score. Leveraging the credit card company to say "Uncle" to your ability to switch over is easier than you think.
The switch over tactic
If your credit card interest rate is over 20% you should definitely seek relief in several ways. One of these ways is to let them know you are thinking of moving to a competitor’s credit card because they are offering a lower rate. They will move promptly to earn your dollars and interest. Let them know how unsatisfied you are about their ability to reduce your percentage rate commensurate with your ability to pay your bill in a timely manner. They will probably put you on hold immediately and speak with a manager to get your rate reduced.
Mortgage Cycling ? Brilliant or Risky
November 11, 2007
With mortgage rates near 20-year lows, competition in the mortgage industry is fierce. It seems like every day a new mortgage loan strategy comes out that is suppose to be the best thing since sliced bread. Whether it’s a mortgage with no closing costs or an interest only mortgage, everyone is claiming they can save you a ton of money. Now someone has come out with something called Mortgage Cycling. Mortgage Cycling could save you thousands of dollars or it could cost you your home.
Mortgage cycling is a program that advertises itself as a method to payoff your mortgage in 10 years or less without making biweekly mortgage payments or changing your current mortgage. Does mortgage cycling work as advertised? The answer is unequivocally yes ? with a few caveats. I’m going to let you in on the secret to mortgage cycling.
Mortgage cycling is based on making huge lump sum principal payments every 6-10 months. What this means is mortgage cycling works well for those who have at least a few hundred dollars in extra cash at the end of each month. The problem is most people don’t have that kind of cash available.
How To Reap The Rewards With Rewards Programs
November 11, 2007
Recently, many of these loyalty rewards programs have come to the realization that they must change how they put these programs together if they are going to increase their share of the market.
One way that has changed over the years is how reward programs have started linking up with various partners to offer more types of rewards for it’s members.
Competition between programs is fierce and this is where you, the consumer, can win. Benefits are increasing at incredible rates to lure you into their programs and it has become even easier to qualify for and accrue points for travel.
It used to be that only hotels and airlines offered these programs but now every kind of company and service is getting into the act.
Yahoo.com has decided to make an exclusive partnership with the Intercontinental Hotel Group for priority club members to manage their accounts online.
To earn more of your business and set themselves apart from others, credit card companies have partnered with specific air, hotel, and rental car comapnies to give their members access to awards through the use of tiered systems based on the amount of monthly credit and the type of business the cardholder has used.
A College Loan Will Finance Your Education!
November 10, 2007
A college loan has given people all over the United States a chance to further their education, even if they are not making a lot of money. Education loans can be a big help in paying for college. You’ll find these loans offer a low interest rate and a generous repayment period. Of course, student loans must be repaid, usually with interest, although some education loans have provisions for cancellation if the borrower performs a program-related service. If you are looking for a loan, be aware that there are many different types of loans. Try to find the student loan that fits you the best.
For example, there is a loan called the Federal Stafford Loan. The Federal Stafford Loan is the most widely used loan in the student education loan program. Federal guidelines limit the maximum interest rate to no more than 8.25% and outline repayment terms of up to 10 years. Remember that if you ever need help or are falling behind on payments, consider a consolidate student loan.
Tips on getting a deferment for your College Loan.
An Infinity Mortgage?
November 9, 2007
Here in Spain the concept of a mortgage period of 20 or 25 years is something new. The general feeling by the banks is that want their money back more quickly than banks in countries in which they are accustomed to longer periods. The borrowers are also accustomed to the idea that the guiding principle is to pay off the mortgage as quickly as possible.
First Timers
The problem for all those people starting out on the property ladder is the amount of money that has to go out each month to put the roof over one’s head. At least this is true for the early years, but not necessarily as the4 years go by, since the advent of inflation. Cases that we studied showed e.g a couple, whose monthly income was £400, having to pay £150 per month in mortgage payment. Although the interest fluctuations since then have meant varying payments, as a percentage of their current monthly income of £2,000 per month, the mortgage does not now seem so horrendous.
Varying interest rates
Negotiating Rates with Your Credit Card Company
November 8, 2007
Ok, let’s face it, everybody hates high credit card rates, and they drain hard earned money out of your wallet. As a valued consumer, it is apparent that you learn how to negotiate to get the absolute best rate that you possibly can. The good news however is that it doesn’t have to be a difficult or time-consuming process. In fact, it can be very easy indeed if you know what you’re doing. In this article we will discuss the ins and outs of credit card negotiating to ensure that you get the best possible rate with the least amount of effort.
It Only Takes a Few Simple Steps To Avoid Student Loan Debt
November 7, 2007
Student loan debt is a problem that affects many former students. It is a long and difficult process to pay off a student loan. Undoubtedly, it is much easier to avoid student loan debt in the first place. There are a few simple steps that can be taken to either escape student loan debt or ensure that the debt won’t be too hard to pay off in the future. Consider student loans only after you have researched all the sources of free financial aid.
Many people who are eligible for financial don’t even realize it and instead take out a student loan. If you are not eligible for financial aid and need to take out a student loan, be aware that there are three major types of student loans: Federal Family Education Loans, Federal Direct Loans, and Federal Perkins Loans.
Make sure you don’t go over your head in debt by deciding how much you can afford to borrow, and how much you can realistically repay.
Ask for help if you have trouble paying off your Student Loan Debt.
If you’re having difficulty repaying your loans, don’t be afraid to talk it over with your lender or loan servicer. Generally, the earlier you ask for help, the easier it is to get it.
How To Save Thousands in Interest on Your Home Mortgage!
November 6, 2007
So you have a mortgage on your home or planning to get one? Here’s something to consider if you want to reduce your interest payment and save on thousands of dollars. Consider going in for a bi-weekly mortgage payment plan.
So, what is a bi-weekly mortgage payment plan? The difference in this type of mortgage plan lies in the frequency of payments. Out here you make your payments every two weeks instead of every month. By going in with such a payment plan, you end up paying for the 52 weeks in a year, i.e. 1 month more than the otherwise 12 payments you would make with the monthly plan (52 / 4 = 13 payments in a year). You may think why pay extra? But the benefits are there for all to see. By going in for such a mortgage plan, you are reducing the tenure of your loan as well as continuously reducing the principal and interest which has to be repaid.
How Creditors Measure Your Credit Rating
November 6, 2007
Creditors will measure your credit rating based on the following three main things.
The three “C’s” show creditors your:
- “Capacity” or income to pay the debt
- “Collateral” or assets to secure the obligation
- “Character” shows your compliance to repay the debt
1. Capacity
The very first question is whether you have sufficient income to repay the debt. Creditors will definitely check to see if your income exceeds your expenses so that you ca comfortably pay the debt. A creditor will then want to know:
- Your income - from all sources
- Your fixed expenses
- Your other debts
The amount remaining from your total net income, after deducting your fixed monthly expenses and other debts, is your capacity. If your net income is $3,000 a month and your total living expenses is $2,500, then your credit capacity is an amount that requires no more than $500 in monthly payments.
If you now pay $400 a month for other credit obligations, then your remaining capacity is a $100 a month, and a creditor should extend you that amount of credit.
There are three techniques that will allow you to maximize your income:
