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Tuesday, January 6, 2009

Stop Whining to Your Lender About the Reverse Mortgage Costs

By Borkow Vanrock

What is important to know is that no matter where you live the closing costs for reverse mortgages will be pretty high.

The cost of closing is determined using the value of the home, which is figured by an appraiser. It is generally five percent but can go up to ten if the home value is very low.

As a loan officer I get lots of calls from people who don't know this, and they often blame my company for the brutality of the deal.

It's the bank's fault that the costs are so high. Right? Well, I wouldn't say the bank isn't a part of the whole equation, but it's not the whole equation.

The totality of all the closing costs is made up of anywhere from 5 to 9 companies. And don't forget HUD.

A closing document called the Good Faith Estimate of Costs separates and shows all of the closing costs, one of which is the origination fee. It is the sole fee from the bank.

It's still a decent size fee, but it certainly doesn't take up the lion's share of costs.

The largest fee, typically, is the FHA mortgage insurance premium. FHA charges two percent of the value of the home up to $417,000.

At the most FHA can charge $8340. The highest the origination fee can be is $6,000.

This is newly legislated by the way. I think its funny that the government has no problem capping how much money the lender can make, but they don't cap how much they can charge.

By the way, were you solicited for political donations recently? Perhaps you thought you were on the big Do Not Call list, and you may be, but these guys conveniently left themselves out of that law.

Back to costs. The title or escrow company takes a big chunk of the costs as well, between title insurance, additional binders, and their fee for conducting the transaction.

The appraisal will be listed here as well, along with the costs of a land survey, which is required depending on where you live. The latter can run for quite a bit.

I don't know about every states specifications, but rest assured there are other little factors that add to costs as well, and as I said in the beginning, the lender isn't the only one to blame.

Curious About How To Make Money Day Trading?

By Sam Lockwood

One way you can make money buying and selling on the stock exchange is by day trading. This method uses the volatility of the market over the course of a given day to help traders make their money. Currently, we're in one of the most volatile markets since the late 1990s, making it one of the best day trading markets.

Via short selling, day trading can be used to get a profit from stocks, even when indicators tell you prices are going down. In every case, day traders will be working with a broker, and they'll be watching two major indicators. These are the TDISC and the NDIX. At the start of the day, these two indicators will broadly tell you what's happening in several different exchanges. When the market's going down, the TDISC will drop more than two thousand ticks within the first half hour of opening. If the market's going up, the NDIX will rise more than two thousand ticks in that thirty minutes.

The speedy changes that occur over the course of the day are what help day traders make their money. They do quick buys and sells. This is why day trading is both an excellent way to make a lot of money, but also very risky. Some people lose everything. Because you're not buying for the long term, the temptation to go without researching is high. You can get lucky this way, but most of the time it doesn't work.

Day trading isn't passive income - it's a job. Anyone who wants to do day trading should make sure that they've been properly trained. There are plenty of good online courses and seminars out there that'll help you be sure you know what you're getting into.

One thing you'll need is a brokerage account, since one of the most important things in day trading is being able to short sell. Short selling is when you borrow stock from your broker and sell it right away, planning to buy another share at a lower price to give back when it comes due. You profit if the stock prices drop. If you time things correctly and read the market correctly, this works out well for you.

The opposite of short selling is deciding to borrow or buy a share of stock at one price, then selling it the same day for a higher price.

To do well in day trading, you must have excellent observational abilities and amazing nerves. You also have to have a short memory. That's because you're going to have to look at losses, and you have to be able to do it without letting stress take over.

It is definitely possible to do day trading from home if you use the right programs and have the right tutorials. You'll need to be sure that you have a plan for executing your trades, and that you do them before the last half hour of the trading day for the market.

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Tribute MasterCard - Review

By Daniel Moskel

The Tribute MasterCard is a bad credit unsecured card. It is frequently used to rebuild a low credit score.

This card is issued by the First Bank of Delaware. This bank has been in the sub prime lending business for years.

With responsible use of your card it can help to improve your credit score. This is because with on time monthly payments you will be able to create a positive payment history on your credit report.

This factor is heavily weighted when your score is being calculated. In addition it will improve your ratio of available credit to debt. This ratio is how the bureaus decide if you are in over your head or can afford the new credit line.

There will be an annual fee; however every sub prime card carries an annual fee. You will have an APR of 19.50% which is standard for these cards.

This card will report monthly to all three major credit bureaus. You initial credit limit will be $300.

However if you have very low credit score you can still be issued a card instead of the $300 limit is will have a $70 limit. This is done because the First Bank of Delaware wants to provide a second chance to as many people as possible.

This card will report monthly to all three bureaus and works just like the card with a $300 limit. You will be eligible for limit increases. There are no finance charges and no account set up fees for both cards.

There have easy approval requirements and no minimum income for this card. You will have free online account access and there is no application fee.

Your card will be eligible for limit increases up to a maximum of $2000. When you apply you will know if you have been approved within 30 seconds of submitting your application.

You should also know to get the most benefit on your credit with this card you should aim to keep the balance at roughly 20% of your credit limit. This will help your score because it shows you are in fact using your card and using it responsibly.

In sum we do suggest the Tribute MasterCard. When used properly it is a very effective tool to rebuild a low credit score.

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How To Make Money From Passions

By Thomas L Russo

In making online many people jump right in before they are properly ready. You know that to be a rocket scientist, a doctor, a school teacher, a surveyor, an office worker, a lawyer there is study and exams to do , things you must learn, before becoming successful, you don't just jump right in unprepared

The same thing applies to the Internet marketing world even though there are sharks out there who'd have you believe it's as "Easy as falling off a log" and requires no more than the belief that you can just do it.

And I'll have to admit, it is a walk in the park compared to what you have to put up with in the working world punching a clock being a underling to someone who does not have your best interests in mind, but there are still rules you have to follow and down falls you must avoid to really make Internet marketing work for you.

A lot of people will not make a cent online and yet there are others who will make more in one month than most people make in a whole year. Why is this?

My answer begins with the age-old question which is the chicken or egg question, "what comes first the chicken or the egg"? Personally I'd vote for, well never mind, each argument you or I make comes back to the same old answer - I have no idea and I don't think many of us do either.

There's one thing I do have a idea about and know for real is that to make money online you must first have Passion for the service and/or company products of any Internet business from which you put your hope on to make a lot of money.

Passion in this sense basically means that you've researched the company and and like the products or services it provides. It is then that you translate that Passion and like into the education, excitement and work that usually accompanies Passion.

I will have to say that many online entrepreneurs are really so good at what they do that they ignore passion because they can sell anything. But I'm concerned about those of you who don't have a knowledgeable understanding of working an online business successfully.

Now, I'm not trying to make everyone believe that Passion is the only thing that's needed. Because to be really successful you must also have a good website, good marketing, widespread advertising, company support, effective keywords, good business relationships and so on. Those attributes are often learned from the company you join - but sidestep Passion and you reduce your chances for success greatly.

It follows that, if you have no Passion for the company and the products and services provided by that company, you won't try to do the work you are being taught.

Internet marketing work is generally not all that difficult or takes a lot of time but it does take motivation caused by Passion to get you up and running with a concerted effort so that you won't fall.

You have a great resource in the Internet search engines such as Google to search about the Internet Marketing industry for business opportunities, PLEASE USE IT!

In doing your research you should discover a company that you like and will have confidence in. It should be founded on great principles, solid, and easily to understood with terrific products and services that are sell-able for which you can have Passion. If you don't find it move on, you will I'm sure find the right opportunity containing the attributes identified above. It just takes a bit of time and patience

Comments like, well, that one sounds good and the money looks good so I guess I'll start that business - does not sound like a decision based on anything like Passion. And please remember when you hear that an Internet "guru" does that, don't be tempted, because as I said earlier they are experienced and can sell just about anything, without being Passionate about the company products and services.

Note: By the way it's your goal to get to the point where you can sell about anything online. That end skill and goal is a worthy one indeed.

Remember, When you step into Internet Marketing there are other steps you must take, but if you can't first find that right company with products and services that you can be passionate about, then all of those other steps may just cause you a lot of trouble instead of bringing you a great result.

By not being Passionate about a company and it's products and services that has proven it's self in the market that it will sell is a downfall you simply must avoid to be successful.

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Finding Guaranteed High Risk Personal Loans

By Dave Davis

If you have bad credit, you might think that there aren't any options out there to borrow money. Perhaps you need to fix your car, or pay an unexpected medical expense, but because you have a poor credit history, you think there is no one who would be willing to lend you the money since you are considered a high risk.

If you think no one will lend you money because you are considered high risk, there may still be an option for you. Guaranteed high risk personal loans are given to people to fund their personal needs, but the lending source won't usually deny you the loan just because you have bad credit.

These loans are also sometimes referred to as payday loans because they help you get money in advance of your payday. But you probably won't want to borrow more than you can pay back on your next payday since the interest rate will most likely be high. Since you are considered risky to the lender because of your credit history, lenders cover their bases by attaching high interest rates to the loans.

So if you do take out this kind of loan, you'll want to be careful with it. Pay it back in full and on time, and you won't have a problem. In fact, you may even improve your credit score by taking out the loan if you pay it back according to the terms of the loan. Most loans will be issued on a short-term basis and really are meant to cover unexpected expenses, not to finance something you want since the interest is so costly.

If you're looking for this type of loan, there are several things that you're going to want to keep in mind. You need to shop around looking for good interest rates. Taking the time to shop for this kind of loan can save you thousands of dollars in interest. Some lenders of this type will waive fees for first time borrowers, so asking the right questions is highly recommended. Most people sign up for these loans online and by doing a little searching you can find literally hundreds of different lenders.

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?How Canadian Retirement Affects Some Americans

By William Blake

There are some Americans who live near Canada who have strong opinions about Canadian retirees. This is because some Canadians decide that they would prefer to retire here in the U.S. and so after their last day of work they begin to look for a home in the States. There are some that are not very happy with what they would probably call the Canadian invasion.

It's Called A Line, Stand In It With The Rest Of Us

It has been observed that some Canadians have the custom of being a bit impatient. Most of our manners are closely linked to the customs in the area in which we grew up. What Americans consider rude and pushy other cultures consider quite normal and acceptable. For example, it has been noted that Canadians are line jumpers. That can be very offensive to Americans but who knows how this is viewed in Canada.

Canadian Drivers

Canadian retirement planning involves the complete removal of the knowledge of how to drive from the Canadian retiree's brain. Canadians, as a rule, drive like maniacs because their speed limits are usually 20 to 30 MPH faster than those in America. But when they retire they all of a sudden decide that the scenery in the United States is lovely and they want to drive 20 or 30 MPH below the speed limit to enjoy it.

Road rage doesn't seem to be quite as big a problem in other countries. In most places honking your horn is merely a way of letting someone know you are there or that you have the right of way. The horn is not used as a way to insult or complain about another persons driving. That may be why when Americans lay on their horn to express their frustration Canadians seem to be oblivious to any problem and continue doing what they are doing.

Shop In Your Own Malls!

These cultural differences between Canadians and Americans seem to carry over from the roadways into the shopping centers. Some find it difficult to deal with the overwhelming number of Canadians shopping in U.S. malls along the border. It is not uncommon to find more Canadian license plates lining the parking lots than U.S. plates. Inside the shopping center the different views of what is considered good manners and what is considered rude cause frustrations and problems. These cultural differences will only get worse if we cannot try to find a way to adapt to other cultures rather than reject them.

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Conservative Appraisals Not Helping Reverse Mortgages

By Scweezeme Vanrock

Two days ago I heard from a would-be client, who quickly became a never-would-be client. I say this because I can practically guarantee that I wont be contacted by him again.

He completemented me on my fine job of marketing to him as a lead-in to what he really wanted. He said, "how can you get me the most money out of my home, compared to another lender."

There is actually no way to do it another way. All of us in reverse mortgages use the same formula to establish the cash amount that can be removed from a loan.

After that he says he would like me to hire an appraiser that would do impressive work. I knew this meant he wanted someone who would alter his results a bit to have it work out in the end.

The point being for him, a reverse mortgage lender will lend him a greater amount of money if his value comes in higher.

He, like a lot of senior borrowers, are in a tough spot today with declining values. Most are looking to pay off a mortgage with a reverse mortgage, thereby eliminating the payment.

However, with a low appraisal the reverse lender cannot always give enough to complete this goal for them. Instead, the borrower has to continue paying on the forward mortgage until the worth of his house goes up enough to try again.

Appraisers are in a tough spot right now. Yes, they had the luxury for many years to trump up appraisals.

A totally "by the book" appraiser reading this might be a little hot under the collar. But everyone knows plenty of fudging was going on.

Fast forward to today when everyone is getting the blame for the mortgage fiasco, appraisers included. Appraisers are being scrutinized more so than ever.

With the frequency of appraisal reviews taking place, appraisers could possibly lose their license if they don't do things by the book.

So, that is what I told this guy. I haven't heard from him since. I told him other companies would tell him how their appraiser will definitely get him the greatest value.

Most lenders will promise it, but won't do anything differently when it comes down to it. I choose to let seniors know all the facts and risk losing them as a client.

How Will the 4 Property Rule Effect You?

By Susan Lassiter-Lyons

Portfolio lending is on the rise. The main reason for this is portfolio lending is not subject to the crazy 4 property rule. Through a portfolio lender, it is possible to have more than 20 mortgages. But those investors looking for conventional loans through lenders such as Fannie Mae and Freddie Mac will run into the 4 property rule wall.

It is understandable that new rules need to be put in effect to prevent the fiasco that precipitated the nefarious $750 billion bailout bill. However, the onset of the 4 property rule is among the most egregious. In fact, this particular rule is a complete rejection of the principles that the free market is founded on. That is, the 4 property rule is a massive overreach of government regulation designed to limit the free market. Worst of all, this type of regulation limits a great deal of personal liberty and freedom.

Wondering what the 4 property rule actually is? Fannie Mae and Freddie Mac announced in 2008 that the maximum number of financed properties a person can have is four. This crazy rule even includes a person's primary residence so really the maximum number of rentals is limited to three.

Specifically, if you are still financing your primary residence, you can only flip three properties if they are currently being financed! Again, this type of rule does very little for aiding investment circles. Really, it is a form of protectionism. And, as history shows, protectionism has the inverse consequence of what it was originally intended. That is to say, it does nothing to help the market and overall economy. Instead, the 4 property rule can significantly weaken the economy.

For example, prior to the current economic meltdown, many legitimate investors took advantage of skyrocketing real estate values. They would purchase properties at low prices and then sell high. In some cases, real estate investors would purchase significant volumes of property for resale. Some investors would purchase literally dozens of properties for resale. The profits derived from this wholesaling had an enormous benefit on the overall economy.

If the 4 property rule went away, there would be many positive effects. First, real estate investors would have to put their profits somewhere and my bet is they would go to the stock market. That in itself would provide a huge amount of liquidity. It would also fill up the tax coffers. And, of course, the wealth created would lead to more real estate being purchased thus improving values overall. The 4 property rule accomplishes none of this. I hope this rule will be overturned so we investors can fully participate in and contribute to the economic recovery.

Then again, regardless of whether or not this rule is revoked, portfolio lenders are not restricted to such a rule. If you wish to seek massive financing, a portfolio lender is the lender to visit.

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Credit Card Snowball Effect and How to beat it

By Philip Crafton

If you are like millions of other people on the planet, you likely have at least three credit cards with balances of ten to twelve thousand dollars. In addition, you are probably still only paying the minimum payment.

As everyone knows that plan will take you, no where on the path to debt elimination. You will simply sit and spin your wheels hoping that you win the lottery so you can pay off these balances. What if there was a better way?

Using what is known as the credit card snowball effect you can pay down then pay off all of your credit cards. Currently you are floating along only doing the minimum, this way you take an active role in your debt elimination.

You know what that is, right? Just like a snowball, you roll up in the backyard, credit cards will build up a balance seemingly in moments. As a consumer, you have two choices, get smashed by the credit card snowball effect or turn it around and make it work for you.

Snowballing your credit card balance to achieve debt elimination is not difficult. You take a little each month and add to what you are already paying. You take the balance down faster and therefore the interest you pay, which in turn grows the amount of your next payment that goes toward principle, this is the credit card snowball effect.

There are many people who will tell you to pay off the card with the highest interest rate first. This is what that plan will look like:

List all your credit cards

Put them in order according to interest rate percentage.

Pay as much extra as you can each month on the one with the largest interest rate.

Do this over again for each succeeding credit card until you have eliminated them all.

At first, the glance this seems like a reasonable plan for debt elimination. However, this is not always the best course of action.

All of your credit cards have different balances and interest rates. It would only seem to make sense to pay off the highest interest first. Nevertheless, consider these numbers.

For example, let us say you have three credit cards with interest ranging from 5% to 20%. Now assume that one of the cards has a $5,000 balance at 10% interest, which is fifty dollars per month in interest. The highest interest rate you have, 20% is on a card with a $2,000 balance, equaling forty dollars per month in interest.

As you can see in the above example this is a time that conventional wisdom does not apply. Fifty dollars a month will soon balloon the balance on that card even though it is the lowest rate in your wallet. Especially if you are making only the minimum payment.

Let's take another look of how to use the credit card snowball effect to your advantage:

Create a list of all your credit cards and their rates.

Choose the one with the highest interest accrual each month.

Add extra payments to this card until the balance is zero.

Keep all other cards at minimum to free up cash to pay off the first card.

Repeat this process until all cards are paid off.

Sometimes a debt elimination plan means looking at things with a new perspective. This way of using the credit card snowball effect will have you free of your debt woes in no time.

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Steps to Repair Your Credit

By William Blake

Having bad credit is a problem that will really affect every aspect of your life. Many of your hopes and dreams will be unattainable if you have bad credit. Even taking care of life's necessities becomes more difficult if you do not have good credit.

Do not feel that because you have blemishes on your credit now all hope is lost. There are steps that can be taken to help repair your credit scores and help regain and maintain a good credit rating.

Know What Your Credit Looks Like

The first thing that you should do if you want to repair credit score is check out your own credit. You can get your credit score through your bank or other financial institution, and you can also order it yourself online and get it in the mail or through email. This is an important step because if you want to repair credit score you are going to need to take a look at where you starting from.

You will need to see how much you are owing and to where, and make sure that there are no inaccuracies showing on your credit report. If you do see there are some mistakes, you will need to take care of these immediately because they will be negatively affecting your credit score even more the longer you leave them.

Pay Off Your Creditors

Now you are going to need to start paying off your bills as quickly as you can if you want to repair credit score. The best idea is to start with your credit cards, and although you do not have to pay them off all at once, the quicker you can do it the better.

Get all your credit card bills together and decide which one you will pay first. Focus on paying more then the required amount on one card each month which will mean less interest compounding on that account. Work through each card until they are all paid in full.

Plan to Make Wiser Decisions

After you have accomplished the difficult task of paying off your credit cards decide that you are not ever going to be back in that situation again. Work hard to establish good credit by avoiding new credit card debts. If you use credit cards in the future pay the balance in full every month.

These are steps that you can personally take to repair your credit and they are free of charge. You will save money and repair your own credit at no extra cost to you.

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