May
31
Help When Cashing Out Your Mortgage Loan
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Refinancing is to pay off your existing mortgage with another one at a lower rate.
A cash out refinance is refinancing your existing mortgage and borrowing some of your equity in a lump sum to use for other purposes. Such as home improvement, college tuition, family vacation, etc.
People have many reasons to use a cash out refinance is to use the equity in their home to invest in real estate, or start their own business.
The cash out refinance are very good tools when used for the right reasons. It is not wise to do cash out refinancing if you are going to receive a higher interest rate than what you already have on your current mortgage.
If you have a really good rate on your current mortgage, it would be wise to leave it alone.
However, if you are looking to tap into the equity you have acquired in your home without touching your current mortgage, you may want to consider a Home Equity Loan.
With a home equity loan you can borrow the equity you have acquired without touching your first mortgage. The home equity loan is also referred to as a second mortgage.
For instance, if you have acquired $50,000.00 worth of equity in your home, you can borrow up to about 90% of that equity, without your first mortgage being affected.
The cash out refinance and the home equity loan can be very similar and serve almost the same purpose, your situation should determine the right choice for you. The cash out refinance is a first mortgage where you will receive all of your cash upfront when you close your mortgage. The payment will remain the same throughout the rest of the term of the loan. With a home equity loan you are not required to take all of the cash you are needing at the time of close. You can draw on the line like a credit card to take only as much cash that you need. The payment for the HELOC will fluxuate until you fix the term with the bank.
As always, I want to leave you with this reminder. Do your homework, educate yourself, and shop around for the best deal. The best place to shop around for a mortgage refinance is at www.geniusrates.com. There you will find one form that you can fill out and receive back multiple offers from several different mortgage brokers and banks.
May
31
Quick cash loans are coming under greater overview nowadays, as more and more communities become concerned about the proliferation of such businesses within their boundaries. In several states, quick cash loan stores are as prevalent than fast food restaurants! If you need a quick $100-500 loan, with interest rates that may be as high as 1000% annually, you need look no further than Utah.
“But I do not live in Utah!”, you may say. “Why would I care?” You should care because the Web now offers cash advance loans, and the loans offered through the Web are governed by state laws in which the Web site is based. And with the least restrictive quick cash loan laws in the United states, Utah is swiftly becoming the Internet payday loan capital of the United States.
Most states have caps on the amount of money that may be lent by cash advance loan stores; such amounts generally range from $200-500. Most states also have limits on the interest rate that can be charged. Utah seems to be alone in having a cap on neither.
But is not Utah full of religious types? Doesn’t the Bible have unpleasant things to say about lending money at interest? Yes, and yes. But Utah has often had a relatively lax view of banking legislation, and Utah is unique in offering a type of financial institution called an “industrial bank.” An industrial bank allows a corporation whose main business isn’t banking to open up a bank for large, non-consumer, monetary transactions. Such banks are prohibited by almost all other states. By opening an industrial bank, a corporation can extend their monetary operations to the other states. Industrial banking has been quite lucrative for Utah, and a lot of institutions have founded such institutions there. That has led to thousands of jobs for Utahns, and that generally keeps lawmakers happy.
Since Utah does not desire to hurt a business that clearly has been good for the state, lawmakers are reluctant to tighten any banking polices. “After all,” the thinking goes, “If they put caps on payday loans, won’t they put caps on mortgages or auto loans next?” That’s outrageous thinking, of course, but that, combined with hefty monetary contributions to the mostly-Republican legislature, keeps the wheels greased in favor of the banking industry.
The result is a state that has 60% more cash advance loan stores per capita than the national average and interest rates that can, and do, exceed 1000% percent annually for short term loans.
And thanks to the increase in such lending offerings online, those rates of interest can now bepaid by just about anyone who needs a temporary loan. Most other states do have caps on such loans, so be careful when applying for one online. Read the small print and make certain that you know what you’re agreeing to repay.
May
30
When presented with an array of credit card advertisements offering the perfect credit card offers with low interest rate that are available, would you wonder exactly what it’s these companies offer to you? What does low interest rate mean exactly? Simply put, a credit card charging a low interest rate, or annual interest rate (APR), is a plastic card that can save you a lot of money in the long run.
When you don’t have any idea just what APR signifies, the yearly percentage rate is the exact interest that card suppliers bill their card holders for the privilege of making use of their card, as well as for leaving a portion of your outstanding monthly balance unpaid on your card account. If you only pay off the minimum payment every month, the unpaid sum of money incurs interest charges that is definitely computed based on the APR of the credit card company. However, making your payment completely on or before its due date will keep you interest-free.
In case you are the type of person that typically compensates merely a portion of the amount of money owing every month on your credit card bill, your current choice should be to take the business credit cards with the lowest interest possible to cut off your charges of interest. In this way, carrying a monthly balance could be a lot easier.
One of many ways looking for the best credit card offering low interest is through proper research. You can find various credit card comparison sites on the Internet where you can search for free of charge credit cards based on rates of interest. While most of these cards do not normally offer fringe benefits like cash back or travel insurance, you may still get the benefit of saving money and building a good credit score. This is because the longer you maintain your charge card account, assumed it is in great rating, it’s going to work in a beneficial manner on your own credit history.
May
30
Car-leasing has been lauded as a more attractive alternate to buying, offering in the process the flexibility to drive a new car for less. The reality, however, is that leasing is an option that is fraught with many pitfalls for the average customer.
Leasing regulation does not require as much disclosure as buying a vehicle. This has given rise to many leasing scams that trick the customer into believing they are into a good deal when, in effect, all he is getting is a rocky deal on the dealer’s terms.
Here we look at some of these common car leasing scams and how you can protect yourself from them .
Artificially low interest rates:
Some dealers quote a low interest rate when in reality it’s much higher . They do this by either purposefully quoting the money factor as the interest rate or calculating the loan without amortizing some closing fees, like the security deposit, into the loan lease.
Take the money factor for example: this is typically expressed as a four decimal digit, something like 0.004. Some dealers quote this as a 4% interest rate when in fact you need to multiply it by 24 to get a rough idea of the interest rate on your loan.
In this example, the interest rate is a much higher at 9.6% than the “quoted” rate of 4%. Make sure you crunch the numbers and understand the formula they use to calculate their interest rate. Look out for any fees not factored into the calculation.
If something smells fishy about the lease agreement, don’t sign it!
Terminate your lease early for a low penalty
This is a long standing car dealer scam when it comes to leasing. You ask your dealer how much you will pay if you want to terminate your lease and he tells you: “You can pay only a small early termination fee of $250″…. he/she is misleading you.
What he is quoting is only the small administrative penalty of early termination. In fact, there is a much stiffer penalty called an early termination fee and this runs into thousands of dollars that comes on top of the other administrative early termination fee.
Do not confuse the early termination administrative penalty with the termination fee. Read the small print cautiously and know just how much you will get charged should you terminate your lease before its scheduled end.
Pay for an extended warranty you don’t need
This is one of the oldest car tips in the book: avoid extended warranties provided by the dealer. The dealer slides an extended-warranty into the deal whilst it’s already factored into the monthly payments, so basically you’re paying for two warranties… or he might even try to sell you on a 36-month warranty when you’re only leasing the car for a 24-month term.
You warranty is already factored in , so don’t get sold on extended warranties by a slick salesperson .
“$0 security deposit”
Any dealer who advertises a $0 security deposit is not telling you the whole story. A security deposit is always factored in the lease under the provision for disposition fees. Once again, always read the fine print when dealing with lease agreements or buying a car in general.
May
13
What Is The Best Savings Rate Available Today?
Filed Under interest rates, Savings Accounts | Leave a Comment
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What Is The Best Savings Rate Available Today you ask. Good question… and the answer is 6%. There are some regular savings accounts offering more than this but the headline rate is NOT the rate you will receive. Normally the catch is that you’re only allowed to save a maximum amount each month, not stick the whole sum of money into the account on day 1. Which means that you won’t really be getting the full 6% annual interest on your money… you’ll be getting a blended and lower rate.
This is how it works. Let’s say today is the 6th April, start of a new tax year, and you want to invest some spare cash in a cash ISA. Now the regular saver ISAs tend to insist on a monthly payment rather than a lump sum, thus the term “regular saver” in the title of the account.
So what happens is you invest £300 on 6th April, then another £300 on 6th May and so on until 6th March the following year when you finish the savings plan. What this means is that on the first deposit of £300 on the 6th April you will get paid 6% on £300 for the full 12 month term. On the second deposit of £300 on the 6th May you will get eleven twelfths (11/12) of 6%, the next month you get ten twelfths (10/12) of 6% and so on until you reach the end of the year. Over the year the AVERAGE rate of interest you receive will be lower than the amount you would’ve received had you just socked the full £3,600 straight into the ISA cash account on day one!
Conclusion: just be careful and know that the headline rate isn’t always the true rate of interest you will be receiving.
If you do want to invest some money and receive a REAL rate of return of 6% then sign up to my list (enter your name and email address in the boxes in the top right corner of this page) and I’ll send you details of a very secure and profitable way of earning 6% on your money.