Home Mortgages: Up, Up and Away!
January 15, 2008
Refinance NOW-before it’s too late
If you haven’t found the time to refinance your existing home mortgage, it’s time to take action-like yesterday! Every time Alan Greenspan, Federal Reserve Board Chairman, opens his mouth, you can bet that the federal funds rates will rise by at least a quarter of a point, or by 25 basis points in investorese. What that means to you is that home mortgages will rocket as well.
A quarter of a percentage point may not seem like much, given that the federal funds rate currently stands at 2 ¾ per cent, but a reality check quickly reveals that you, personally, have probably never seen 2 ¾ per cent interest on anything in your lifetime. Take a look at your credit card statements. Are you paying 2 ¾ per cent on your credit? What about your home mortgage? Without getting technical, there’s little correlation between the federal funds rate and home mortgage rates except the direction in which they travel, and right now that direction is headed to the sky.
A Personal Loan And Your Rights
January 14, 2008
You can use a personal loan for many different things including, but not limited to, paying off bills, taking a vacation, buying a car and much more. Interest rates on a personal loan will vary, depending on your credit rating and the institution you are choosing to get your personal loan from. It is highly recommended that you get multiple quotes and rates before making a final decision on your loan. This way you will know if you are getting the best deal possible.
Take the time to compare rates and save money. Even if a lender is offering you better rates than the competition, find out how much money that would save you. Ask about all of the fees associated with the loan. Some lenders hide their fees and make money off of innocent people who don’t think about asking.
There is some valuable information you should know about Fair Debt Collection laws. The more you know about loans and lenders, the better consumer you will be.
If you use credit cards, owe money on a personal loan, or are paying on a home mortgage, you are a “debtor.” If you fall behind in repaying your creditors, or an error is made on your accounts, you may be contacted by a “debt collector.”
Why Americans Find Predatory Lending Offensive
January 13, 2008
“Menis - the author translates as “indignant rage” - It is the kind of rage arising from social betrayal that impairs a person’s dignity through violation of “what’s right.” (p21), Achilles In Viet Nam - Combat Trauma and the Undoing of Character, Jonathan Shay, M.D., Ph D.
“The vulnerable relationship between child and parent is a metaphor for the relationship between a soldier and his army. It is also more than a metaphor when we consider the formation and maintenance of good character. The parents betrayal themis - (the ability to feel good about oneself , self esteem, self image) - through incest, abuse, or neglect puts the child in mortal danger. Despite intellectual limitations, the small child usually grasps the danger, although the child’s mental representation of the danger differs from adults. The child’s inner sense of safety in the world emerges from the trustworthiness, reliability, and simple competence of the family.
“Similarly, the child’s acquisition of self-control, self esteem, and consideration of others depends upon the family. Absent inherited mental disorders, good parenting will produce good character and all the other adult resources of dignity and maturity, including ideals, respect for others, self respect, ambitions, self-care, pro-social rather than anti-social activity, reliable capacity to distinguish reality from fantasy, and so forth.
Home Equity Line of Credit or Second Mortgage Loan Online - Things To Do With Your Homes Equity
January 12, 2008
If you are wanting to get a home equity loan, rates are still low enough that you may want to make use of that equity in your home. Do you need some ideas on what you could do to multiply your equity or make some extra money off of the capital that could be available to you?
Here are some suggestions of ways to put the equity to good use when you go to take out a home equity or cash out refinance loan.
1. Do a home improvement that will increase the equity in your home more than the cost of doing the improvement. As an example, I have heard rumors that adding a deck to a home, because of the amount it increases the homes resale value, can add up to 4 times the cost of actually installing the deck.
2. If you have a low interest rate on your home, invest your equity in a low risk investment that has a much higher return on your money.
3. Buy an existing business or start a new business with the equity capital in your home. If you can start a low risk business, take the opportunity to let your equity work for you.
Factoring vs. Bank Loans
January 11, 2008
Is factoring a type of loan?
No. Even though invoice factoring is commonly referred to as " factoring loans", it is a financial practice involving a B2B transaction, but no bank. To further explain, account factoring, it is when a company, like Peacock Capital, purchases your accounts receivable invoices at a discount and provides you with immediate cash. A traditional bank loan uses your company’s accounts receivable as collateral, where account receivables factoring looks primarily at the financial soundness of your customers, not your company. Banks are regulated heavily; large finance companies generally are public and driven by pressures in the financial markets. When times are tough, banks and finance companies limit lending. A small business, too new to have a track record, with a weak balance sheet, with a history of financial problems, in turnaround mode or undergoing big changes, often cannot find a willing lender at any price. That is why factoring is best for small to mid-sized businesses.
Does a bank loan make more sense for my small business than invoice factoring?
Warning: Todays Non Profit Credit Counselors Are Yesterdays Bill Collectors!
January 10, 2008
Here’s a dirty secret, today’s “non profit credit counselors” are often just front organizations paid lucrative commissions by creditors to keep consumers from declaring bankruptcy!
In the “debt collection biz”, creditors will sell your outstanding debt along with the debt of hundreds of others to a collection agency for cash up front.
The collection agencies will work this debt until they’ve made all the money they can.
Then they’ll keep selling this block of business to whomever will buy it.
This explains why you can stop being pestered by a bill collector for a while then a completely different bill collecting psychopath will start calling your house or sending you threatening letters out of the blue when you thought they were finished.
The Fair Credit Reporting Laws have put some damper on their crude activities, as have the bankruptcy laws.
But yesterday’s bill collectors have gotten wise.
If people go bankrupt, the creditors get virtually nothing.
So why not figure out a way to get people to voluntarily pay much more than they would otherwise by going through bankruptcy?
So today, yesterday’s bill collectors often masquerade as “non profit credit counselors”.
Cash Out Refinance Mortgage Loans ? Home Equity, 2nd Mortgage or Cash Out Refinance Loan
January 10, 2008
There are some definite benefits to doing a cash out refinance. Just make sure that overall you are not going to be spending more money in fees and interest doing a cash out refinance as opposed to a home equity loan. When you do a cash out refinance, you are refinancing your entire loan. Let’s say you owe $300,000 on your home and you want to get $10,000 in cash out. If in refinancing your rate will be the same or higher, then you will be losing an extraordinary amount of money in fees just to get a $10,000 loan. In a case like that, you would definitely want to go with a home equity loan.
Home equity loans are better if:
1. You have a large home loan yet only need to cash out of a small amount of equity
2. You need to borrow up to 100% of the equity in your home
3. You want a revolving credit line
4. You want a payoff sooner, or longer than the term of the rest of your mortgage loan
On the other hand if you are:
1. Going to refinance anyway
Interest Only Home Loan ? Is It Right For You?
January 9, 2008
There are many benefits to interest-only mortgage loans. There are many situations where an interest-only mortgage loan could be best for you.
Here are some of the situations where an interest only mortgage loan might be beneficial to you:
1. If you are in a situation where your income is sporadic and would rather have the option of paying as little as possible sometimes and then paying larger amounts when there is more income, for example, a real estate agent or loan officer.
2. If you are investing your mortgage payment savings in something else that is low risk, and has a much higher return on your money than your house payment.
3. If you are temporarily in a situation where your income will be low for a while but then increase later on.
4. If your mortgage is only temporary, for example, an investor looking to flip a property or someone who is working on a fixer upper. It would be good in any situation where it would be in your best interest to keep the payment low as opposed to creating equity in the home.
SBA Loan: Qualifying and Applying
January 8, 2008
According to federal government research, small businesses provide about 75% of the net new jobs added to America’s economy. They also employ fully one?half of America’s private sector workforce. In addition, 99.7% of all employers in the U.S. are small business owners. These statistics make a strong case for the existence of a federal organization dedicated to the promotion and proliferation of small businesses in this country.
In 1953 the United States government established the Small Business Administration (SBA) as a way of assisting entrepreneurs in forming successful small businesses through government guaranteed loans. While the SBA itself doesn’t make many small-business loans, its primary function is to guarantee the small-business loans made by private lenders.
Most SBA loans are secured through any one of the SBA’s many licensed partners nationwide. Besides establishing lending guidelines for their partners, the SBA also ensures reasonable loan terms by guaranteeing major portions of the loan in the event of a borrower default. Because of the decreased liability provided by the SBA, the lender is able to offer better interest rates and options to businesses in the early stages of development.
Building Business Credit
January 7, 2008
Most businesses want to be able to borrow money when they need it, without the owners having to guarantee the loans personally. This means less risk to the owners. But wanting to get credit for your business and actually getting it can be two different things.
One company recently approached us because over the past two years they had created a successful business, with over twenty employees. But they couldn’t get a business loan because they hadn’t taken the time to build a business credit profile and didn’t know where to start.
You may have seen marketing hype about how a business credit profile can overcome a bad personal credit file. In most cases, however, it’s important that small businesses have both good business credit, as well as solid personal credit on the part of the owners. This is especially true in the current environment where investors and venture capitalists aren’t handing money out to just anyone who can breathe and has a business idea! Even established businesses will find it necessary in some cases to provide the business owner’s personal guarantees on some loans or credit cards.
