Archive for December, 2007
Personal Finance – Applying for a Personal Loan
Posted by admin under: Main Dec 28There are numerous reasons why a personal loan may be required, home improvements, car purchases, holidays or new furniture. Make sure you understand what type of loan you are taking out, if it is secured against your property or an unsecured loan.
It is wise to compare what personal loans are available for your circumstances, as a homeowner, private tenant, council tenant, or other circumstances. Proof of earnings, bank statements and proof of identity will probably be required.
There’s no shortage of companies willing to offer you readies in the form of a personal loan. You can usually borrow up to ?15,000 from six months to 10 years, but remember to tread carefully and avoid loan sharks charging impossibly high interest. And be wary of falling behind on repayments, not only could you lose your home if a loan is secured on it, but you will almost certainly have trouble buying future financial products and getting credit.
Work out your financial position before you sign up for a loan, making sure you can afford the monthly payments.
Generally, the more you borrow, the lower the interest, but rates do vary so shop around. It’s not so difficulty comparing personal loan rates these days, due to the help of financial comparison sites.
Your choice of personal loan depends on how quickly you need the money and how soon you can pay it off. The most competitive personal loan providers charge interest of around seven to eight per cent.
Get personal loan quotes and check if the personal loan includes insurance, then pick the cheapest rate. If there’s a chance of repaying loan early, look for one without redemption penalties.
Many companies can arrange a loan within 24 to 48 hours, and often the quickest method of securing the loan is applying on-line. All internet based companies also have a contact number for any queries you may have.
Most companies do have age restrictions, for instance they will only loan to people aged between 23 and 65.
If your earning are based on commission, or you work freelance with a non guaranteed monthly income, check out loans that are geared for those with a variable income who want to pay different amounts each month and clear the loan early – like a credit card but with higher limits available.
Lenders will encourage you to take out insurance – always a good safety net, but this does add cost. A good alternative is accident, sickness and unemployment insurance, which protects your entire income including the loan, if you can’t work.
And finally, before signing on the dotted line of your personal loan form be sure to check the terms and conditions, and be clear about the monthly loan repayments and penalties. There’s a lot at stake if you get this wrong.
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Source: Personal Finance – Applying for a Personal Loan
Mortgage Applications Fall to Lowest Level This Year
Posted by admin under: Main Dec 28
U.S. mortgage applications fell last week to the lowest level in almost a year despite lower interest rates and fewer associated borrower costs, according to the Mortgage Bankers Association’s weekly survey.
The group’s seasonally adjusted mortgage application index fell 7.6 percent during the week ended December 21 to 603.8, the lowest point since falling to 575.6 in the week ended December 29, 2006.
The index plunged 19.5 percent the prior week, creating the largest back-to-back decline since April 2004.
Purchase applications dipped 6.6 percent, while applications to refinance a loan fell 8.5 percent to the lowest point since September.
The refinance share of mortgage activity decreased to 53 percent of total applications from 53.2 percent the previous week, while the share of adjustable-rate mortgages increased to 10.4 from 9.9 percent of total applications from the previous week.
Fixed-rate 30-year mortgages averaged 6.10 percent last week, down from 6.18 percent the prior week.
The average 15-year fixed mortgage fell to 5.66 from 5.78 the week before and the average rate for one-year ARMs decreased to 6.03 percent from 6.48 percent.
The MBA’s weekly survey, compiled every week since 1990, covers about half of all U.S. retail residential mortgage applications.
If you’re interested in staying abreast of the latest mortgage news, consider our free e-mail updates! <!– –>
Source: Mortgage Applications Fall to Lowest Level This Year
Santa Did Come This Year
Posted by admin under: Main Dec 28Merry Christmas and a Happy New Year: For Kathleen and I it was Christmas All Year Long…
This photo barely caught Santa leaving the area.
However, before he left he picked up some Toys For Tots. Did you help Santa in your community this year? He will need your help again next year. Sign up, it makes for a better neighborhood.
And take the kids, or the neighbor kids on a ride, it was fun.
Wasn’t it Sarah? Pay it forward works too.
toys+for+tots, issaquah, christmas
Source: Santa Did Come This Year
Homes ready for quick move-in at BFH
Posted by admin under: Main Dec 27
Bowen Family Homes invites homebuyers to look at all their new homes in Atlanta that are ready for quick move-ins now. In more than 25 communities in Cherokee, Cobb, Fulton, Forsyth and Gwinnett counties, Atlanta area homes are available in all price ranges and styles in Bowen Family Homes communities.
Various end-of-the-year incentives are now being offered, including $10,000 incentive on select homes and communities. For more information about Bowen Family Homes, call 1-877- MY BOWEN or visit www.bowenfamilyhomes.com.
Source: Homes ready for quick move-in at BFH
Bankruptcy Relief Can Solve Debt Problems
Posted by admin under: Main Dec 27Bankruptcy relief is one sure way for a person, or a business, to be able to make a fresh start in their financial affairs. Usually, filing for bankruptcy comes after the individual or company has run into extreme financial difficulties, but once they have filed a new bankrupt claim, they are protected from lawsuits and collection harassments from creditors.
Obtaining legal relief from becoming broke is a vehicle provided for under Federal laws. During the course of the bankruptcy claim form process, the assets and the liabilities of the debtor are assessed. Based on the specific situation of the debtor and the amount of debt owed, the type of it to be filed will be determined. Most individuals end up filing a Chapter 7 or filing Chapter 13 one. In most instances, business entities will reorganize their debts under the structure of a Chapter 11 type.
There are some very specific rules and regulations when it comes to filing for bankruptcy and which Chapter is applicable. Because of the complexity of this issue, it is recommended that people get help with bankruptcy from an experienced lawyer who can guide them through the process of attaining bankruptcy relief. Obtaining legal relief from becoming broke is a step that is considered drastic and it should not be undertaken lightly.
In many cases, people decide that seeking legal relief is the course they must take after there has been some sort of extreme financial setback or some type of emergency. Many times the root cause of the financial problems comes because of the loss of a job, a business failure, extended illness or injury, divorce or the death of a family member.
When the financial pressures mount to the breaking point, legal relief can become the only option someone is able to exercise in order to find a way to help debts and secure a clean slate. For many years, there was a significant stigma associated with people who ended up filing for it. However, this stigma has faded somewhat in more recent years, as it is seen more in a light of giving people an opportunity to start over again rather than as a failure.
There are two main types of legal relief from becoming broke. The first type, which was the most common until the 2005 bankruptcy reform legislation, is liquidation. Since the new bankrupt reform rules, most of the time only those with a very low income or those who are considered to be less stable debtors are eligible for the liquidation option. The second type of it is reorganization. This type allows for the debts to be structured and paid over a period of time.
Liquidation bankruptcy relief is governed under the mandates of the Chapter 7 type claim form and can be filed by either businesses or by individuals. When filing for brokeness under Chapter 7, the court issues what is called an “automatic stay,” which stops all attempts to collect any debts that are included in the court record filing.
A bankruptcy trustee is assigned to the case and is responsible to collect any “nonexempt” property, to liquidate it, and then distribute the proceeds of the liquidation of assets to the creditors. The distribution is done in order of priority which is determined by the bankruptcy statues.
In most cases, reorganization bankruptcy relief is implemented in situations where there is sufficient future income that can be used in a repayment plan. Usually the plan is for repayment of a portion of the full debt and the amount of the repayment is determined by the trustee and based on the debtors ability to pay.
Business and individuals with a great deal of debt, file under Chapter 11 bankruptcy. In most cases, however, individuals who need to reorganize their debts will file Chapter 13 bankruptcy.
Educate yourself further about bankruptcy relief from Mike Selvon articles portal. Your feedback is valued and appreciated at our bankruptcy information blog where a free audio gift awaits you.
Original here
Source: Bankruptcy Relief Can Solve Debt Problems
Second Homes: Foreign Investors Hit Jackpot
Posted by admin under: Main Dec 27A weakened U.S. dollar and falling home prices are turning America’s second home market into a fire sale for some foreign buyers.
Not only can buyers from abroad cash in with stronger currency, falling domestic home prices and short term vacation rental income helps seal the deal.
The US Dollar Index, which tracks the greenback against six major international currencies, has recently been at its lowest point since the index was created in 1973.
That’s because the sluggish U.S. economy is bogged down in higher energy cost-inflation; subprime mortgage securities losses; and falling interest rates, among other market conditions.
The national median price for all housing types fell more than 5 percent in October. compared to a year ago. That was the greatest national home price decline since the National Association of Realtors (NAR) began record keeping 39 years ago.
Christine Karpinski, director of Owner Community for HomeAway.com, a leading online vacation rental portal, says slow home sales is a good thing for investors looking for vacation home bargains. And vacation rental income can help pay the mortgage.
Elliott Pollack, a Scottsdale, AZ economist said when combining the lower cost of homes in his neck of the woods with the lower value of the dollar, to foreigners, American homes are a full one third cheaper than in recent years.
Conditions are similar in Las Vegas where Asians are major buyers of condos and other real estate.
In Florida, a growing number of buyers are also foreign and Stewart Title says, when compared to western Europe and Asia, Florida home prices are a bargain.
According to NAR’s “They Come To America — To Buy Homes,” in 2006, 65 percent of Florida real estate agents had at least one international customer and the trade group’s “Profile of International Home Buying Activity” indicated that at least 7 percent of 2006 home sales in Florida were to foreign purchasers.
Source: Second Homes: Foreign Investors Hit Jackpot
Understanding How Federal Reserve Rate Cuts Work
Posted by admin under: Main Dec 27Have you ever wondered how the Federal Reserve works? Here’s a brief synopsis.
The Federal Reserve is like the central bank of the federal government and the privately-held guardian of the U.S. economy. It’s composed of 12 regional banks that report economic conditions. Together, the heads of the banks determine many economic policies. They collectively:
- Regulate monetary and credit policies such as the buying and selling securities
- Set the cost of credit (interest rates,)
- Determine how much money and what terms are available to member banks for borrowing directly from the central bank (discount rates)
- Determine the rates and terms member banks borrow money from one another (federal funds target rates)
There are two ways banks can borrow money using Federally-insured funds. They can borrow money directly from the Fed using the “discount” rate, or they can borrow from each other using the “federal funds” interest rate. Both are short-term or overnight rates.
The discount rate is designed to improve liquidity for the banks themselves. The federal funds target rate rate is meant to impact consumer credit.
Because the Fed can’t dictate what happens in the market, the Fed will issue a “target” rate for federal funds, which most banks stick close to. They can then charge consumers whatever they feel they can get away with in the form of credit card interest rates, mortgage interest rates, car loans and so on.
One thing the Fed does not do is set mortgage interest rates. The lenders do that based on such factors such as the yields from mortgage-backed securities. When the bond yields go down, interest rates follow. Bond yields go down when the market believes inflation is under control.
If that’s true, mortgage interest rates will drop, and housing becomes more affordable.
Source: Understanding How Federal Reserve Rate Cuts Work
Another Nudge To Congress Please
Posted by admin under: Main Dec 27That was nudge not fudge
The Senate version of FHA reform did not provide for Mortgage Brokers to bond their net worth.
This is important, as FHA rules requiring mortgage companies to have a specific net worth is keeping many out of FHA.
This limits it’s availabilty to you. The fewer that have it, the less the competition, and the higher the prices.
FHA oversight is serious. The bad boy brokers will not have the hay day some think, just by being able to put a bond instead of the net worth.
I say call your Senator, Call you Congress person. Give then a nudge, then send them some fudge.
Lar
PS: We must be having some influence, everything we have asked for lately, we get. Keep it up people.
Source: Another Nudge To Congress Please
Is Uncle Sam Gunning For Granny’s Gold?
Posted by admin under: Main Dec 27HUD presents itself as the borrower’s friend, your buddy when it comes time to get a mortgage. There’s considerable truth to this claim, just look at FHA mortgages in general. While much of the mortgage marketplace is melting down, the latest numbers from HUD show that the FHA program is likely to double in size this year as borrowers seek safe and sane financing.
That said, there’s another side to HUD, the side you rarely see in speeches or news releases.
About 90 percent of all reverse loans are insured by HUD. And how does the federal government help granny get the equity out of her home? According to a new 228-page study presented by AARP to the Senate’s Special Committee on Aging last week, the “maximum allowable fee” under the FHA reverse mortgage program increased more than 300 percent between 2000 and 2006.
AARP’s testimony says that a 74-year-old homeowner with a $300,000 home is likely to pay $30,000 in lifetime transaction costs for a reverse mortgage — that’s money which is not going for home improvements, trips, medicine, mortgage interest or heirs.
The magic phrase which should interest everyone is the expression “maximum allowable fee.” Just who increased the allowable origination fee by more than 300 percent in six short years? Which elderly citizens told HUD that they wanted to pay more, lots more, for reverse mortgages? Has your income gone up more than 300 percent in six years?
HUD says it originated more than 100,000 reverse mortgages in fiscal 2007, a figure that rose 40 percent when compared with a year earlier.
That’s great. But how many insurance claims did HUD actually pay out to justify its stiff up-front premiums? Is the reverse mortgage program anything but a cash cow for HUD? Should senior citizens who need money in their final years pay such sky-high fees? These are questions the Senate committee needs to ask.
Source: Is Uncle Sam Gunning For Granny’s Gold?
Survey Finds Nearly All Would Pay Mortgage First
Posted by admin under: Main Dec 27
A survey released today by Online Resources Corp. found that the mortgage crisis is spilling over into the broader economy, impacting companies across a variety of industries and their ability to collect payments.
The study of more than 1,000 nationally representative U.S. households found that American consumers are increasingly being forced to prioritize their bills by creating a “delinquency budget” to decide which bills get paid first.
And if forced to chose between which bills to pay, 98 percent of households said they would likely pay their mortgage first, while credit cards, utility, and healthcare bills are among the least likely to be paid.
The survey also found that one out of four households reported being delinquent on at least one bill by 30 days or more.
Online Resources also studied a cross-section of billing clients from banks, credit unions, utilities, healthcare companies, card issuers, receivables management and mortgage companies, finding that only two percent expect it to be easier to collect payments in 2008, while 84 percent expect to spend more on collections in 2008.
“Today’s challenging credit environment could pose a serious risk to companies in all recurring bill industries and their ability to carve out a priority spot in consumers’ budgets,” stated Matthew P. Lawlor, chairman and chief executive officer of Online Resources.
“Billers who provide consumers with more options to resolve their delinquencies will have a distinct advantage in competing to win a priority share of the delinquency budget and also retain valuable consumer relationships.”
Interestingly, the survey found that billers are out of sync with how consumers would prefer to resolve their delinquencies.
The majority of consumers prefer to use the web to make delinquent payments because of its convenient and non-confrontational nature, but only eight percent of billers offer such online collections services.
These findings could help mortgage companies deal with the ongoing wave of delinquencies more effectively.
If you’re interested in staying abreast of the latest mortgage news, consider our free e-mail updates! <!– –>
Source: Survey Finds Nearly All Would Pay Mortgage First