Post Tagged with: "finance"

From an ARM to a Fixed Rate: Should You Make the Switch?

someone signing a contract When it comes to refinancing a home loan, many are considering making the switch from an adjustable-rate mortgage (ARM) to a fixed-rate loan. If you are thinking of doing the same, keep in mind that this move makes sense if the interest rates are low. You should also, however, consider your personal circumstances and know what could happen if you decide to make the switch.

The Good Points

With a fixed-rate mortgage, you’ll have a stable monthly payment, with a principal and interest rates that will remain the same throughout the life of a mortgage. This is the opposite of an ARM, with loan payments and interest rates that can fluctuate depending on the market trends.

Refinance lenders in Phoenix note that the stability of a fixed-rate loan can make it easier for you to manage your monthly budget, as you know that your loan payments will be the same every month. It can also give you peace of mind, as your rates and payments won’t increase even if the market rates go up.

What You Should Think About

When compared to the initial/introductory period of an ARM (the period where interest rates remain fixed for a certain period), fixed-rate mortgages usually have higher interest rates. They may be generally considered risk free, but you cannot take advantage of decreased payments and rates if the market interest rates fall dramatically.

How Your Finances Will Be Affected

If you decide to refinance, you will have to pay closing costs. This is why it is best to determine your goal for making the switch. You should also aim to refinance for the right reasons like shortening your current loan term or lowering your interest rate.

If you, for instance, decide to extend the loan of your term, you are likely to pay more interest rates with a new loan. This is why experts suggest resisting the urge to refinance to a 30-year loan. While this will definitely lower your monthly payments, this will also increase the total amount of interest to be paid over the life of the mortgage.

Refinancing can be a good move if you do it for the right reasons. Talk to a lender today to more about refinancing and your options.

August 31, 2018 at 9:24 amFinance

Home Loan Mistakes to Avoid

money on the table and a house in the backgroundApplying for a home loan comes hand in hand with shopping for a new property, unless, of course, you are one of the lucky 1% of the population who can afford and pay with straight cold cash. Realistically, having a home loan, let alone applying for one, is a process that most people can easily go through if they follow the right process.

Knowing the mistakes to avoid when applying for a home loan in Portland is important, especially if this is your first time. Primary Residential Mortgage, Inc. cites some of them.

Not shopping for the best loan

As a first-time home loan applicant, you must shop around for the best deal on the market. Take your time and educate yourself about the trend that you need to know. That way, it will be easier to choose something that you won’t regret in the long run.

Having a bad credit

Having a bad credit before you apply for a home loan is almost always the reason people get their applications rejected. Make sure your credit score is admirable, if not reasonable enough, to impress the lender.

Not being able to budget properly

Have a weekly or monthly budget and stick with it for a long time. Doing so can help you manage your monthly expenses, including the mortgage fees and other initial payments that you would need to make upon application.

Not locking your mortgage rate

Mortgage rates fluctuate depending on the current market standing. Therefore, it’s a must to lock down your rates, lest you want to be surprised with an inflated rate in a few years’ time.

Mistakes are bound to happen, especially for first-time mortgage applicants. However, avoiding mistakes is always possible if you know what you should do.

May 24, 2018 at 11:58 amFinance

Critical Questions You Need to Ask Before Working with a VA Lender

a banker handing a client a loan document to signThe VA Loan Program has been helping veterans, and active service members purchase homes and refinance their home loans since the ‘70s. But to use the VA loan and maximize its benefits, you need to find the right VA-approved lender.

Below are some crucial questions you need to answer when shopping around for prospective lenders.

What’s the VA Lender’s Background on VA Loans?

Although VA loans might not be the best option for all military borrowers, they’ve helped plenty of military people fulfill their dreams of homeownership.

But because they offer such excellent benefits — reduced rates, 0% down payment, and no PMI, among others — they are likewise considered a very specialized product, which means that they can’t be offered by just any lender.

Basically, you would need to find a lender that’s officially approved by Veterans Affairs because VA loans come with very specific requirements and guidelines that are slightly different from those that come with other types of loans.

Could the VA Lender Connect You with a Real Estate Agent Experienced with VA Loans?

For plenty of military homebuyers, working with real estate agents who have ample experience with VA loans is very crucial. This is because they fully understand the unique requirements of military homebuyers and know how to maximize the benefits that VA loans could provide.

What Do Real Clients Say About the Lender?

Many people depend on online reviews when trying to make buying decisions and a VA loan is probably one of the biggest purchases you’ll make in your life. Do your research and read testimonials and reviews of your prospective lender’s clients.

Make sure to read real testimonials and not those that look cherry-picked. Consider looking through trusted and reputable third-party review websites if you’re uncertain of the authenticity of the reviews on the lender’s social media accounts or official website.

Selecting the right VA lender could mean the difference between buying the house of your dreams and getting stuck a so-so house. Try to meet up with prospective lenders multiple times to get a feel of how they work with their clients.

February 20, 2018 at 8:04 amFinance

What You Need To Know Before Getting A Car Title Loan

Man handing over car keysAt some point in people’s lives, there may come a time when they would need to spend a certain amount of money, money which unfortunately they don’t have on hand. A medical emergency perhaps, or major house repairs that aren’t covered by their savings.

When this happens, one option for getting the money needed is to turn to cash loan service providers like Utah Money Center. In Salt Lake City, there are different kinds of loans available for those who need to borrow money fast. One of these is a car title loan, which is a small and short-term loan in which the title on a vehicle is used as collateral.

Here’s everything you need to know about a car title loan and when it’s ideal to apply for one.

How does it work?

Borrowers need to pledge their vehicle as loan collateral by giving the vehicle’s title to the lender until the loan is repaid in full. In order for you to borrow against your car, you need equity in it. In most cases, borrowers need to own the vehicle free and clear (with a clear title to show for it), but there are cases when lenders approve loan applications even if borrowers are still paying off a standard purchase loan.

How much can you borrow?

The loan amount is based on the car’s value or the equity in it. In general, the greater the car’s value, the bigger the amount that you can borrow. However, the full value of a car is rarely given because the higher the amount lent, the more difficult it will be for borrowers to pay it back. Lenders may give only the amount that they can get for the car if they have to repossess and sell (it if the borrower is unable to repay the loan).

What is the usual loan period?

Car title loans are often due for complete repayment within 30 days. In cases where borrowers are unable to repay within that period, they can extend repayment by rolling over the loan. This means they get a new 30-day loan, but they would have to pay new loan fees and additional interest.

What do you need to apply?

Applying for a car title loan requires you to complete a loan application, after which you will need to present your car, a photo ID, proof of insurance, and the clear title. You may also be required to provide duplicates of your car keys.

When applying for a car title loan, make sure you review the loan terms. Ask the lender to tell you the total cost of the loan as well as the annual percentage rate or APR. Lastly, borrow only what you can repay in full by the date the loan is due so that you avoid paying for a loan rollover or worse, losing your car.

February 9, 2018 at 7:53 amFinance

4 Reasons to Opt for a Mortgage

a couple looking at their new houseDo you happen to be among the elite with cash enough to buy property up front? If not, then you will be better off getting your newest asset financed by a bank. Learn the many advantages of using a mortgage to secure a house, a car or a business.

1. You do not have to be liquid.

If you have enough cash to get yourself your dream house, you can always aspire for one through a home loan in Portland.

You need not pay in full to acquire the property all because the bank will take care of the payment. All you have to do is comply with the requirements to get approved by the banker. Next thing you know, your loan is good to go.

2. You decide on the payment terms.

While it will be beneficial for you to pay the mortgage in a short period, you have the freedom to choose not to do so.

You could prefer to pay the loan amount for a longer period in case you do not have the right amount of cash. Besides, the bank will be earning more interests should you decide to stretch the period of payment.

3. You got different payment options.

What’s interesting about mortgages is that you have several options when it comes to payment. There’s the so-called monthly amortization that ideally covers part of the principal and the interest.

In some cases, you could opt to pay the interest alone every month and pay the principal in full on or before the entire obligation matures.

4. You get to secure competitive rates.

When you go for a home loan, you can anticipate competitive interest rates. You might want to check out the existing rate and see the trend whether it is wise for you to buy a property at the moment.

A lower rate would signal a good time to buy, while a higher rate would tell you to defer the purchase somehow.

With a mortgage on hand, you don’t have to pay your property in cash up front. Plus, you get to enjoy yourself with several options.

January 17, 2018 at 10:57 amFinance

4 Tips on Fixing Cash Flow Problems

Sources of cash flowEvery business requires cash to run the daily operations of their business. Therefore, if there’s a cash flow problem, it’s important to fix them as soon as possible. Otherwise, you may run into problems with your creditors and ground your daily operations. Here are some ways to help you do that fix:

Send invoices as soon as you’re done

Invoice your clients as soon as you complete the service or deliver the goods. If you delay, chances are your invoices will get to the customer when the invoice payout date has already passed. You will have to wait for some time, causing strain on your cash flow.

Upsell your goods and services

Seek ways to improve revenue by encouraging customers to buy more or in bigger sizes. You may buddle up services and goods or give a discount if the customer buys them as a package. You can also cross-sell to a customer (if possible) to get you more money.

Negotiate with your creditors

Request your creditors to give an extended period to pay your lines of credit. This will reduce the pressure on your cash at hand, enabling you to handle the most pressing needs of your business.

Look for alternative funding

Look for a short loan or a bank overdraft to solve cash flow challenges. ARF Financial and other financial experts suggest considering flex credit loans, for instance. You may also seek supplier financing and small business grants offered by the government and other lending institutions.

Find ways to ensure that there’s enough cash for your daily business operations to survive. Pay variable costs as well as part of other lines of credit. These can help run your business smoothly and avoid late repayment penalties.

December 2, 2017 at 1:00 amFinance

Know the Most Suitable Housing Grants in Ogden

New houseFinding a decent home to stay may not be an easy thing to do. It is important to know how to solve your housing problem by understanding the best and most realistic options available to you. The following housing grants are available to persons interested in buying a home without stress. They are among the best housing grants that residents in Ogden could obtain.

Neighborhood Stabilization program grants

These grants are special and are meant to help people who cannot buy new homes in certain neighborhoods. Sometimes the properties are previously foreclosed properties. These properties may have stood empty for years and are in need of repair and renovation. New homeowners may need to clean up the mess and renovate extensively.

The overall effect is that the entire community benefits from new residents and as such, the neighborhood improves, and house prices increase over time. These grants are offered by the housing and urban development department and are distributed to local agencies and sometimes non-governmental organizations that in turn manage the funds.

Federal Housing Authority

This is another option that individuals explore when looking to buy a house that is fairly priced. It may not be a direct grant, but you are likely to get the best offer considering that this is a reputable mortgage insurer globally. A simple guarantee from the federal housing authority will attract lower interest rates and lower down payment requirements. It is in this program that you find special purchase programs that can go a long way in ensuring that you have a home of your own.

Charitable institutions

Look for organizations with a mandate and aim to help low-income families have homes. Such an organization is helpful for any eligible family that wants to own a home as they offer advice on home ownership. Furthermore, it offers assistance to families regardless of race and religion. All you need is to qualify for the assistance by taking a class and also having the ability to pay a certain level of a mortgage.

There are many options for housing assistance that you can explore. Check that which suits you best and try it out. Owning a home has been simplified.

October 10, 2017 at 1:00 amFinance

Keep Your Business Running with Better Financial Strength

Financial report on an IpadWhen it comes to your business finances, it is crucial that you do not overlook even the smallest details. Just so many things could go wrong, such as delinquencies for missing or forgetting a payment, the points taken out of your credit score, and the difficulties that follow a decrease in your credit score.

Because you cannot afford to stress and stretch your finances any further, it pays to have someone take care of the books for you. This is especially true if you have no background or experience in accounting.

Besides, you have a business to run, so it is much better to outsource your bookkeeping solutions than deal with everything yourself.

Ensuring you’re making more than what you’re spending

It is quite easy to think that business is good, especially when you just secured a big client. You have all the right to be happy and excited, but just because you have a new customer do not automatically mean you are generating more money than what is going out of your banks.

This is one of the most important responsibilities that your outsourced bookkeeping team will handle for you. They will make certain that your cash inflows exceed your outflows and that business really is good.

Keeping your records free of tax errors

One of the biggest mistakes you can ever make but should avoid at all costs are those that have something to do with your taxes. Just so many repercussions will arise when you commit such errors, including the possibility of an IRS audit.

All businesses try their best to avoid this, seeing as this puts their reputation on the line.

When you attempt to do everything on your own, it may seem that you cut back on your overhead expenses. This may work for a short while, but the longer you put off hiring bookkeepers, the more difficult things will be, and the greater the risk you put your business in.

September 8, 2017 at 6:38 amFinance

The Nifty Tactics That Will Get You the Best Auto Loan Rate

Auto Loan in UtahWith literally hundreds and hundreds of car lending companies in Utah, you would definitely find it hard to choose one. All of them have these seemingly great offers, which make it even more difficult. And with so many of them competing for customers, many of them have decided to lower their rates, which also adds up to the already difficulty in selecting the right lender with the best offer.

Fortunately, there are a lot of things you can do to get the best auto loan rate in Utah from providers such as Wasatch Peaks Credit Union. Here are just a few of them.

Never underestimate the power of your credit report

Almost every lending institution out there, whether for vehicles, houses, or businesses, always take a very close look at their applicants’ credit report. They check for any red flags, particularly those that have something to do with your debts or your credit worthiness. When they see that you missed a payment or a deadline for one of your financial responsibilities, they can already tag you as a high-risk borrower. This could either mean higher interest rates or even a disqualification of your application.

This is why you should never forget to always make a request for a copy of your credit report. Especially when you know you paid all your dues on time. A lot of people have made the mistake of not checking their credit reports and ended up having to pay seriously higher interest rates just because of an error on their report.

Use all available online tools for comparison

Much thanks to the availability of so many different tools designed to help car loan applicants, you will now find it a lot easier to find just the package and interest rate that suits you and your financial capabilities the best. Just do some cruising on the World Wide Web, and you will find online tools such as those for comparison, for calculating the overall cost of the loan, or how much you can afford to pay.

Keep these in mind, and you definitely will have higher chances of finding and securing the best rate for your auto loan.

October 1, 2016 at 1:00 amFinance