Monday, October 28, 2013

Important Things to Know About Home Loans

It can be confusing for people as to which home loan they should choose. This is understandable as each have different kinds of debt, interest rates and other policies to comprehend. Below is a detailed explanation of some of the most common home loans available.

Home Loans

Fixed rate home loan

A home loan with a fixed rate lets you enjoy a static interest rate which will not change during the duration of your mortgage. This is the most used plan provided by banks and credit groups. This loan lets you enjoy a fixed monthly fee to pay. This can give you an ease of mind in knowing you’re monthly expenses won’t increase because of the mortgage.

The only disadvantage you may have here is when interest rates go down. This period allows those with other house loan plans the benefits of reduced monthly fees. However, you can benefit from the period when interest rates are rising.

Your payment is mostly used to settle the interest of the loan during some of the first period of your mortgage. Once the interest is paid, the rest of your monthly expenses are used to cover the principal. You can discuss with your lender if you want to pay the principal first. You also have the option of increasing your payment in order to settle your debt faster.

Adjustable rate mortgages

Adjustable Rate Mortgage (ARM) loans are the opposite of fixed rate loans. However, most ARM loans provide a fixed rate during the last half of the mortgage period. Availing of this loan allows you to enjoy a very low initial rate of interest. For the first months or years, you may pay less each month in comparison to a fixed rate loan.

The disadvantage of taking an adjustable rate mortgage loan is the period when the rates are high. During this time, your monthly payments also increase. However, you can also enjoy the period when the rates are low. This is when your loan payment is lowered.

Balloon payment home loan

The balloon payment home loan is derived from the final payment of the mortgage. You only pay the total interest fee throughout the period of the loan. However, the entire principal owed must be payed right away at the end of the mortgage. The term “balloon” is based on the large fee being asked from you on the due date.

This loan is usually taken by individuals who believe they can get the finance to cover the “balloon” in the future. For those who are not able to pay the due date fee, they have the option to take another financial loan to cover the expensive principal. However, there are risks which can occur.

The balloon payment home loan should not be taken without fully considering your financial status. This plan is suitable for you if your salary is low, but you’re expecting a promotion or a raise in the future. The monthly fee of the balloon payment loan is much lower than other plan which is perfect for most people.

Everything mentioned above can help you clarify some of the common home loan plans. This will allow you to choose which is suitable for your financial status.

Taryn Jacob is a Senior Financial Advisor for over 2 years now. She’s a graduate of Banking and Finance at Melbourne Business School then later moved to Brisbane. Ventured to do journalistic practice, she currently writes for Heritage Bank specialising in home loans.

6 Reasons Why Mortgage Broker Mentoring is a Must

Broker mentoring is a must if you dream to earn a name for yourself in the field in the time to come. It’s a lucrative field but do not let yourself fall into the world of fantasy without first getting trained by the best. Get yourself enrolled into a mortgage broking course, for example.

Mortgage Broker

Listed below are 6 reasons that explain why having a mortgage broker is a must.

Wealth of Knowledge

For the reason your mentor has experienced various seasons in the field for long both as an entry level professional and high level manager, he can teach you some really helpful tricks used in the game. Something that took him his lifetime in learning can be learnt by you in a few sessions. By learning from a good mentor will help you to strike really good deals in the time to come. Mortgage broker mentoring provides you with this knowledge without having to fail a hundred times. That’s the real catch.

Contacts Matter

it’s not only about learning the nuances of the game all the time. Experienced mentors also carry lots of high profile contacts with them and you can benefit from them if you mentor thinks you to be the right candidate in making. It’s always about approaching the right contact in the business, if you want to make a big sale.

Discovering Opportunities

when new to the game, you will always find yourself landed in confusion in discovering who will be the best client for you. You may get involved with a less profitable client at the expanse of a good one. This is where an experienced mentor comes into picture. He will always assist you in finding the right kind of opportunities.

Point Of Reference

the job of mortgage broking involves dealing with a lot of paperwork. You are expected to be perfectly acquainted with the nitty-gritties of the job. It’s possible that your client may not even be able to arrange the most basic documents required for borrowing a loan. During such tough times, you can always seek advice from your mentor.

Every Trick isn’t mentioned in Books

you cannot learn everything by reading the course books. There will always be some real life experiences of your mentor which may turn out to be helpful for you. Mortgage broker mentoring is not about spoon-feeding a student but enabling him to find his own path when traditional ways are closed. You may analyze their personal experiences and employ them as reference in times of need.

Emotional Support

a mortgage broking course can only help you in entering the field of mortgage broking. It doesn’t guarantee you an instant success. There always lies a probability you may struggle to secure adequate number of deals in the early part of your career. These are the times where you can easily fall back upon your mentor and gain some emotional strength. So, for all these reasons having a mentor is a mandatory requisite for a novice in the field.

Author Bio: Andrew is a specialist Redrockbroker consultant and provides Mortgage broker training. Andrew’s knowledge and experience in mortgage finance has personally assisted his clients around Australia to achieve their business, financial and investment goals.

Thursday, October 24, 2013

Two Reasons to Find Good Home Insurance in Texas

Any type of assurance that your home, car or life is being cared for on a financial level can prove to be quite benefic, so getting a home insurance in Texas seems to be the smart thing to do. But there are other aspects as well; ones which may not cross your mind if you don’t give this the thought and attention needed to make an informed decision. It’s always better to rest easy knowing that your finances won’t suffer that much if something would happen to any of the important and expensive material things in your life.

Home Insurance

Why Home Insurance in Texas

Your home is probably your biggest investment, regardless of how you look at it. You may spend years coming up with the money to be able to buy one and a simple, uncontrollable thing like a storm or flood can take it all away within minutes. No insurance means that you’ll have to start over from scratch, or with too little compensation to account for your loss.

Texas, like almost all locations on Earth is exposed to the elements. Huge storms can occur, floods can happen and you’ll be in danger within minutes. While you and your family can take refuge almost immediately, especially if the authorities inform you of a possible disaster heading your way, the house will remain exposed and will have to face the conditions. In most cases, if it’s a really huge storm or flood, there are almost no chances that it’ll remain unharmed in the process. Getting insurance for situations like these can help in case something like this will happen, as you’ll have access to funds which can allow you to rebuilt, repair or even relocate if the situation is dire enough and you don’t want to risk a second disaster.

Other Insurance Plans

Often enough, people who get home insurance should always look for bundled insurance plans. This could lead to significant discounts and savings overall. You can have your car insured; certain objects in your home or even get comprehensive life insurance plans. Together, these will allow you to rest easy knowing that your personal belongings and your family will be taken care of if something would happen to you or your important possessions.

When looking for any type of insurance plan, make sure that you’ll be given a free estimate of how much it would cost you. If you’re not happy with an insurance plan you already have, feel free to ask around for better options. To find out more of Texas home insurance, visit Get a Policy.

Monday, October 21, 2013

Here’s 4 Ways To Finance Your Dream Car

You’ve found the car that makes your heart race at 120 beats per minute. Now only one thing stands between you and the car of your dreams: financing the purchase. In a perfect world, you’d pay the full price in cash without blinking.

But if you’re like the seven out of ten car buyers who don’t live in a perfect world, chances are you’d be paying for your car through one of several financing institutions.

Finance Your Dream Car

Understanding the basics of each car financing strategy is key to choosing the vehicle financing strategy that best suits your situation. Here is an overview of vehicle financing strategies that may be available to you.

Banks and Vehicle Finance Companies

You can get a car loan from a bank, or other financing institutions. The car that you purchase will serve as collateral for the vehicle loan. This means that the lender can repossess the vehicle if you default on the agreement. Vehicle loans are a popular car financing option because they generally offer reasonable interest rates and are relatively easy to get.

Two factors are likely to affect the total cost of the car loan. One is the term or duration of the loan. Generally, the longer the term of the loan, the lower your monthly installment will be. But you’ll end up paying more towards interest and this will increase the total cost of the auto loan. If you can afford it, get a short-term loan. Your monthly installment will be higher, but you’ll be paying less money over all. The second factor that may affect the total cost of your car loan is your credit rating. Creditors with less-than-stellar credit history are usually charged a higher interest rate because of the higher credit risk.

Dealer Financing

Like traditional auto loans, dealer financing is reasonably easy to get. Most dealerships have relationships with numerous lending institutions, so they can arrange vehicle loans even for car buyers with blemished credit histories. To compete with traditional bank financing, many dealerships offer deals at prime less a few percent. These deals are available to car buyers with stellar credit ratings.
Always get pre-approved financing from your bank or any other financing institution before approaching the dealership for possible financing. By getting loan pre-approval from another financing institution, a car buyer gets the upper hand when bargaining for a lower rate on dealer financing.

Using Your Mortgage To Finance Your Vehicle

If you own a home and have accumulated substantial equity on your property, and you have a facility that allows you to withdraw any equity like an access bond, then you may consider using your mortgage to finance your vehicle purchase.

The interest rate on your mortgage is usually lower than the rate you will get on any vehicle financing agreement so you could end up saving a considerable amount of money if you use this option. You need to be disciplined with this approach and pay the vehicle over the life of the vehicle 48 – 60 months (as if it were any other vehicle financing arrangement). The temptation to pay the vehicle off over the term of the mortgage might result in lower monthly payments however with the added interest you will end up paying much more for your vehicle.

Used correctly this strategy provides one of the cheaper ways to finance your vehicle and is the basis of single credit facilities offered by banks to High Net worth Individuals.

Buy Your Vehicle Cash

Few people are fortunate enough to be able to purchase a new vehicle cash, however if you have the means then this is the cheapest option as you won’t be paying interest / finance charges.
Banks don’t generally finance vehicles that are older than 5 or 6 years and buyers in this sector of the market typically finance their vehicle purchases using cash resources.

Even though it may be the cheapest option from an interest rate / finance charges perspective, if you use the vehicle to generate an income or receive a car allowance then financing your vehicle via a lease or rental and claiming the deductions permitted in terms of the Income Tax Act may actually work out cheaper.
Author Bio: LoanFinder SA provides a 3-in-1 package which includes a free loan-finding service which can find you personal loans online, a 24-month legal and ID assist plan and a credit snapshot report which can provide you with your credit status plus creditworthiness.

Saturday, October 19, 2013

5 Profitable Reasons You Should Consider Hiring Online Bookkeeping Services

No matter what size your business is, online bookkeeping services can help you to stay compliant and look after your company’s financial health. It can also help to save time and money, both of which are areas that most businesses need more of, and better quality at that. By outsourcing your accounting needs to the professionals you can get on with what you do best: running your business. Here are five major benefits of hiring an online bookkeeper: 

Online Bookkeeping Services

1. You Get Access To Online Accounting Software

Sometimes you might be working out of the office, sometimes you might need to travel. By having access to online bookkeeping software you can access any important financial information, 24 hours a day, seven days a week.

2. Get Help With Your Bank Reconciliations

A professional bookkeeping service will help you to eliminate unnecessary calculation errors and promote better financial management skills. Fewer errors mean better cash flow and less time wastage on your part. Furthermore, by outsourcing the service, you do not have to worry about employees having access to confidential information in a small company.

3. Make Sure Your Income Statements Are Handled Correctly

Keep up with your revenue status, improve your cash flow forecasting and grow your business faster and more effectively. Your income statements reflect how much money your business has at any given time, and if you are ever in a position where you need to make a quick decision, you will rely heavily on your income statements to determine whether you can afford it or not.

4. Let Someone Else Handle The Salaries And Payroll

As a business owner your time is worth a lot and it is spent more productively when you are doing what you do best. Allow an accounting professional to take care of your business salaries, maintain confidential information and ensure everyone is paid on time regardless of the projects you may have going on at the end of the month.

5. Have Full Admin And Support Services At Your Fingertips

A lot of bookkeeping work involves administration, filing, scanning and documentation. And, with the host of other responsibilities you have as a business owner, this can add up to a tedious amount of time wasted. Have a support team to fall back on so that you can focus on your priorities and simply check up on the status of outstanding items online, with your accounting software program. For more information, visit today.

Wednesday, October 16, 2013

Personal Loans Online

It has never been easier applying for a personal loan. All banks offer personal loans and you can even apply at selected retailers who have partnered with major banks and provide personal loans under their own brands. If you don't feel like leaving your home you can even apply online at various websites.

Personal Loans Online

You will still need to meet the credit criteria of the various institutions , but the days of making an appointment with your bank manager are long gone. In fact applying online provides you with several distinct advantages that you just don't get if you were to approach your bank.

These are some of the advantages of applying for a personal loan online:

  • The most significant advantage is the convenience factor - you fill in an online form and fax off some details and usually receive an answer within 24 hours , without even leaving your home.
  • Fast approval - although banks are geared to approve quickly the online process is set-up to reduce any delays in the application and approval process.
  • Typically most online personal loan providers use the services of a few banks and lenders and are therefore able to shop around for the best deal for you. In some cases the interest savings can be quite significant.
  • Even if you don't have a clear credit record many online providers will be able to assist you with a personal loan. In most cases the major banks will not be willing to take on these cases.
It may seem like the days of personalized banking are over where the bank manager actually knew you by name. Modern banking has become very impersonal and most banks despite what they say in their advertising only see you as a number and don't really care about your personal situation. Consumers are starting to take more control of their personal finances in this environment and using the services of online loans providers is an important step in taking charge.

What should you keep in mind when applying for a personal loan online:

  • Basically the same considerations that apply when applying at your local branch. The most important issue is can you afford the repayments.
  • What is your current level of debt - all lenders will look at this.
  • Consider all the options available - make use of the financial calculators available here . These can provide you with useful information on repayments and also allow you to test various scenarios and assumptions.
Making an informed decision using all the resources available online has made life significantly easier for consumers and prospective lenders.

LoanFinder SA provides a 3-in-1 package which includes a free loan-finding service which can find you personal loans online, a 24-month legal and ID assist plan and a credit snapshot report which can provide you with your credit status.

Tuesday, October 8, 2013

Why people may want to look at jumbo VA loan rates?

Not everyone is real estate-savvy so it is possible they may not know about jumbo VA loan rates. These can vary from place to place depending on which lender is offering them. These are part of a government-backed program that helps people that have served in the military to obtain homes.

Why a jumbo is different

Home prices in the United States vary a lot depending on the location and the kind of home. Homes in less populated areas may cost less than ones in some areas such as many areas of California, Alaska, Hawaii, New York or other regions. A three-bedroom home in Phoenix, Arizona might cost $335,000 while the same house in Irvine, California might be $800,000. The overall cost of living in some areas also means that homes cost more.

Conventional loans only allow the borrower to get a loan for an amount under $417,000. This is the cap on loans set forth by government regulations and any home that is more than that amount must either have the borrower put a larger down payment on it or it must have a 2nd trust deed used as part of the financing or both. Any home that is more than $417,000 and that the borrower does not have the down payment or financing to cover it must use a loan called a jumbo.

Some important differences

A jumbo loan will always have a higher interest rate than other kinds of loans. This is for two reasons. The first is that the lender is presumed to be taking a larger risk when making this loan in general terms. The second issue is that because many of these homes fall into the luxury category, or are more upscale, it can be harder for the lender to sell the home if the borrower defaults and there is a need to take the home back.

A jumbo is not necessarily harder to qualify for if the borrower has the income and debt-to-income ratio the lender requires. A VA jumbo may have the advantage in that it is usually easier to qualify for. It is important for the borrower to perform due diligence when looking for a lender in order to get the best loan.

What to look for in a loan

Some companies have experience working with VA jumbo loans while others do not. For this reason it can be important to know what the lender is offering and at what interest rate. People will want to ask about additional fees for the loan and to see if these compare well with the offerings from other lenders. To know more of jumbo VA loan rates, visit My VA Rates.

Monday, October 7, 2013

Would You Like Fries with Your Financing?

Even as a financial professional, I’m sometimes bored to tears just by considering the prospect of talking loans and lending, fair value and finance, payees and principal with someone. Believe it or not, I’m rarely sought out at parties by friends waiting with bated breath to hear about the details of my workday. However, car financing is a pretty important subject that’s going to come up at some point in the lives of many, if not most, people. So the other day I was having lunch and thinking about the “boring topic/probably something people should know though” conundrum when I had a revelation: the restaurant I was at had really good balsamic vinaigrette. Good food is excellent, was my next thought- deep thinker that I am. Then a second thing hit me- food too is universal and far less boring than finance! So here are the fruits of that revelation: auto financing as it applies to food. Bon appétit.


Financing through the Dealership –Fast Food Chain in an Airport

Getting financed through a dealership is like nabbing a meal from an airport restaurant. When you’re buying a car there’s a lot of hassle, perhaps some confusion, good chance a little stress has been thrown in as garnish. You know that the pre-packaged airport chain or café plate is probably going to be pricey if you did a comparison but it’s convenient, it’s right there, you’re really hungry, you’re tired and it’s been a long day. Like the owner of the airport eatery, the dealership’s employees are banking on your being tired of the fuss.

They’re wearing that slick car-dealer smile and giving you all the reasons that you should just go ahead and finance through them. In the back of your mind you know it’s probably going to prove an unhealthy, pricey decision and that there are cheaper, more nutritious options elsewhere. But, those things are elsewhere and this convenient offering is right here. You can go ahead and eat the Terminal Tavern’s sandwich special, believe me I won’t judge you, but there’s almost certainly a better option.

A Banking Institution – The Grocery Store

You’ve decided to forego the airport food and stop by the grocery store instead. Good for you. At that grocery store/bank of our analogy, you’re going to be given a far wider range of options than at your local Delta hub and for far less. And the weight you gain from the grocery store’s variety will going down to your you-know-where: the back pocket/wallet area. It’s definitely the best place to put on a few extra pounds (sterling; or, more likely, dollars). The wait is going to be a little bit longer at the aisle but with the opportunity for a better deal and a more regularly-dispersed interest rate- the wait is worth it.

Third Party Financial Institution – A Healthy, Tasty Salad at a Decent Restaurant or… Back-Alley Rat Burger

Unfortunately, third party car finance places just don’t lend themselves to easy categorization or food-purchasing parallels because they vary enormously. Many of the institutions that specialize in car loans are totally reputable, will give you good rates with flexible payment plans and treat you really well in general; I know because I’ve worked for those places. They are the healthy salad at a decent restaurant- generally a good price and not cheap enough to trip the suspicion-alarm warning you that there’s some nasty e-coli/gouging scam interest rate waiting for you later on. If your research leads you to a decent car finance company at which you can talk to someone about a quality plan (talk face-to-face if possible), more power to you.

However, those payday loan places and car title loan spots that have popped up like toadstools by the fistful on every main street in the country, those are the back-alley fare. Same goes and the internet financing offers that sound really great, almost too great! If you get into business with them you’re buying unknown food from some shifty guy in a trench-coat and sunglasses standing in a shadowy alley. Maybe it turns out all right (though it’s not likely) and maybe you wind up with the previously-mentioned violent illness/200% interest rate.

Home Equity Loan – Eating at Chez Paris

This is more of a special occasion situation generally, like if you were buying a classic, antique or otherwise rare/special automobile. It’s a big step and a big investment. A home equity loan is betting your ability to pay off your dream car on the value of your home. It also usually means a lower interest rate and the interest that accrues on your car becomes a tax write-off but you’re putting a lot on the line. A lot. If it’s worth the gamble and you have a really solid trust in your financial situation you can make it work. But if your investment in that great French meal at the 5-Star eatery doesn’t pan out as you’d planned… you’re in some hot water, minus your cabbage.

A Private Loan From a Friend of Family Member – A Home Cooked Meal (Sometimes a Dish That Comes to Be Served Cold)

This is another gamble and one I don’t suggest people take. It’s like living with a good friend or family member: it can go really well and be a great experience for all involved, or it can fall apart. When that sort of thing falls apart with a loved one, they fall hard. If you and your friend or family member have a great, trusting, perhaps efficiently business-like relationship and you can guarantee that your financial situation will remain without difficulties over the course of your loan repayment- it could work.

But it’s hard to be sure that you’ll encounter no financial difficulties and money issues have a way of changing relationships, generally not for the better. Remember that you and the person you really care about will be sharing this meal for a long time. If either or both of you discovers at any point that you don’t like the taste of your mutual cuisine, those meals are all going to go bad fast. And when it’s all over, the two of you may never be able to eat together again.

Erin Patrick is a car enthusiast and has been associated with the automobile finance industry for nearly 10 years. She enjoys writing on the subject and helping consumers and businesses alike find the best financing available through her people at Stratton.