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Thursday, January 29, 2009

Jumbo Mortgage Loans

By Sarah Turner

The average price of a home in the United States is right around 300,000 dollars. When you apply for a mortgage to purchase a home around that average price, the general rules of mortgage loans apply. But what happens when the price of the home you want to purchase far exceeds the typical home price? Jumbo Mortgage loans are offered by banks for homes that exceed a certain price limit.

These types of loans are considered a lot riskier than regular mortgage loans. Most people needing this type of loan are purchasing high-end luxury homes. These types of homes are detailed and have often been custom built. This makes them a lot harder to sell. Generally, people who are looking to spend that much money on a home want to customize one to their own liking.

Banks understand that the harder a home is to sell, the greater the likelihood that they will get stuck with a home in foreclosure if the borrowers ever default on the loan. Banks absorb some of the risk involved in financing these expensive homes by attaching specific rules to the loans.

Jumbo mortgage loans are offered only when the borrower can put down a large down payment on the home. Twenty percent of the cost of the home is usually considered a good down payment for a regular mortgage. But twenty percent usually isn't even enough when purchasing a high priced home.

Borrowers are required to put down a large down payment if they want to qualify for a jumbo mortgage. This way, even if the home loses value, the bank can still recoup some of that cost if the borrower defaults on the loan because they have the down payments. Depending on the mortgage climate, anywhere from twenty to fifty percent of the cost of the home is required for a down payment.

Closing costs on the loans are very high as well. Overall, this type of mortgage is really expensive. In the past, these types of mortgages were only needed for high-end luxury homes, but in recent years, housing prices have skyrocketed. Many people in areas like California and Washington D.C. were forced to become jumbo borrowers even though they were buying a modest home.

In February of 2008, as part of a stimulus package, President Bush signed off on temporarily increasing the jumbo mortgage limit to 729,750 dollars. This was an increase of 125 percent more than what the typically jumbo limit had been.

For those of you who have expensive taste and want to own an expensive home, realize that you will have to take on a jumbo mortgage in order to purchase the home.

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The Up and Down Side of the Reverse Mortgage

By Matt Vanrock

If you are a home owner, aged 62 or older, with a good amount of equity you have the opportunity to use a reverse mortgage to solve a financial problem.

It is definitely case by case in terms of whether the reverse mortgage is the right decision. For many it certainly is.

Those refinancing with the reverse mortgage can use funds in any manner they deem necessary. I find most are getting themselves out of their current mortgage to free up money. Others want to pay off debt or to supplement income.

It's pretty easy to see why the reverse is becoming so popular. Using this mortgage a borrower can solve their problem, not be forced to make payments to the bank, and never lose title to the home.

Furthermore both the fixed and adjustable rate products for reverse mortgages rival those charged for traditional forward mortgages.

You can look at the reverse mortgage from a bird's eye view and tell it is pretty strong. That doesn't mean it is all good. It certainly is not.

Quite simply closing costs are high. And they are high relative to traditional forward mortgages.

Why would that be?

Certainly one of the biggest culprits is that FHA charges mortgage insurance in the amount of 2% of the home's value. Other fees like the origination and title insurance are also based upon the home value.

It doesn't take much to see how these fees can total to a lofty number.

All things being equal a reverse mortgage is very strong. The costs are not equal and must be factored when considering a reverse mortgage.

Reverse mortgage companies provide a disclosure which discusses the cost of the mortgage annually. It takes into consideration these closing costs.

The nice thing is it covers how much the mortgage costs in the coming years.

You will notice the further you get away from closing the cheaper the loan actually becomes.

Because the upfront costs are high this document should help you determine if the reverse mortgage is truly a viable option for you.

Want A Car? aanyone?

By John Brennan

As little as 18 months ago, car loans were relatively easy to get. I know several people who had questionable credit histories who got financing, and that was especially disturbing because unlike a lot of people they really were at fault for their past credit woes. Granted, the rates were terrible, but they got loans.

Today with the credit market in a huge crunch, even gigantic corporations can't get loans much less the little guys. Even the netquote market is ugly. Some are better than others, especially for car insurance quotes, but financing is a whole other matter.

So, you still need a car loan, right? The first thing you need to do is find a dealer who needs to dump some inventory. This is usually easiest from September through December, with the best market being between mid-November and mid-December. The less picky you are about brand name, the more choices you have.

The car youare going to buy shouldnat be very expensive, and always remember to take in account that youall need car insurance so you should quote this is advance, in order to avoid high premiums. Some cars come with many options so make sure that you just buy what you need in this moment, and maybe you could upgrade your car later.

When youare discussing the price with the dealer, remember that theyare in a position where selling is the best for them. You could take advantage of this situation by asking for free repairs, payment facilities and a good warranty.

After making a deal, check how much you will have to spend in car insurance. Adding the monthly payment that your dealer will give you, and the insurance quote, you now have to decide whether youall be able to keep up with the payments, and if this is the case, then you are prepared to make your credit application.

The car dealer may tell you to go with one or two banks to make your application, but it probably would be best if you could look for one on your own. There are many companies and websites that should be useful in your quest and that will present you with much more options and facilities.

Even if you have a bad credit history, the dealers are in a very tight spot right now, so if you are dedicated enough you should be able to find very good deals. Consider this an opportunity to rebuild your credit and start from scratch.

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Avoid Student Debt Through Consolidation

By Glen Stroude

For any student in college or university, being under a mountain of debt is a harsh reality. It is a situation that can lead to much disappointment after graduation. With so much money to be paid off before earning an income, many graduates are uncertain of their future.

Students need not have to feel this way though. Methods and financial help are in place to provide solutions for various scenarios. It still requires paying off the debts, but nothing is ever easy and positive effort is always required.

How can one service the multiple student loans that have been taken up? Other than paying them singularly, consolidating the loans into one single periodic payment is suggested by most credit counseling companies. To encourage more to take this option up, some incentives are offered to students.

Student loans are consolidated in a manner that is very similar to that done for commercial loans. As with the latter, the student's multiple loans are taken over by the credit company and formed into a single one. The student will then make periodic payments off this loan, instead of having to do so for the multiple debts.

This eliminates the need for the student to have to manage the different creditors. He or she is then provided with a repayment scheme that will assist servicing the debt over an agreed period of time fixed to an interest rate. The advantage to this method is the lower interest rates that the student gets to enjoy due to his or her position.

What are the specific benefits that the student has from consolidating the debts into one single loan payment? Other than the much lower interest rates that are afforded, it also results in smaller regular payment amounts. This can help to free up existing money for the student to be used in other areas such as daily necessities and utilities.

The highlight for consolidating student loans is the more attractive interest rates that government and credit counseling companies will provide. Students are given this privilege due to their lack of earning power in their current situation. It also makes it more viable for individuals to go back to school as education becomes relatively cheaper.

Finally, it is crucial to consider consolidating your student loan debts before the grace repayment period ends. This is so that the credit counselors are in a position to give lower rates. These will have to be raised after the grace period, as their risk position increases as a result.

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Home Buddies - Remove Judgments and Boost Your Credit Score

By Cliff Pape

To increase your credit score and make yourself more credit qualified you can eliminate any credit judgments that you may have on your credit report.

Your chances rise of a creditor taking you to court to get a credit judgment when you leave unsettled debts on your credit report for an extended time. A court order will demand you to make payment on credit judgments. Your owed debt becomes the "ultimate validation" that you owe the debt because a judge has found the debt to be credible because he has seen documentation for it.

If you are attempting to get a loan while you have credit judgments against you; it creates a drawback in achieving this goal when you have credit judgments.

You may try to remove credit judgments by doing any one of these things:

1. File a Motion to Vacate

Your credit judgment can be erased from your credit report immediately if your vacate request is granted. If you choose to do this you will need to find out about the court procedures in your area.

2. Find out about the Statute of Limitations in your State.

For credit judgments here in the state of Texas, the statute of limitations is 10 years, but after this finishes it can get revamped within 2 years. The interest rate on judgments used to be 10% now it is only 8.25%.

Judgments will normally stay on your credit report for 7 years; however they can remain collectible for 20 years. Once the 20 year period is expired, it is pretty easy to get an extension if the judgment is open and has not yet been collected.

Credit judgments that have exceeded your state's statute of limitations can be removed with the credit bureaus. You will have to dispute that particular judgment as being "obsolete".

3. Mediate a Removal

You may also try to negotiate a pay for delete with the original creditor to get the judgment erased entirely from your credit report. If you just pay the judgment without negotiating for it to be deleted as well, then it will still be reported on your credit report and updated as paid.

Good luck.

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Living Beyond Your Means ??" A Very Common Trend

By William Blake

It is a very common practice for people to buy things that they don't have the money to pay for. They may charge it and then find themselves in debt for months or years trying to pay for it. Or they may play the game of beat the check to the bank. This is the common trend of living beyond ones means.

When you take a job, you are given a salary. The salary only changes if you get a promotion. For those that work an hourly wage, the amount of your check changes if you work more or less hours each week. Despite our paychecks being fairly consistent, people continue to spend more money than they earn.

Marketing and commercialism add fuel to the fire. We already have the tendency to want more than we can afford and to want it right now. Commerce makes that all too easy with offers of 12 months same as cash or no payments for 2 years. These kinds of offers make it so tempting to spend money we do not have. When the payments come due they are often impossible to handle.

Credit cards can also be a trap if not used with discretion. Statements come at the end of the month. Erroneously you might think that although you don't have the money now, you will have it when the bill comes due. The problem with this thinking is that you haven't figured in the budget the money you just charged to the card.

Often we are able to pay the full balance of the credit card when the statement is due so we pay only the required amount. That begins a horrible snowball effect that would stay with you for years to come. You may end up paying 10 times the amount for the item you purchased after the credit card interest grows over time.

Most people are not interested in learning how to better their finances. They find themselves faced with filing bankruptcy which is a terrible blow to their credit. There are financial advisors available to help people learn to better manage their money. However, very few people avail themselves of these services.

Carrying a certain amount of debt has become a status symbol. Everyone else has debt so why shouldn't I? People are not pressed to get rid of their debt. As long as they can pay minimum balances it doesn't seem to matter that it will take five years and several hundred more dollars to pay off a credit card.

This vicious cycle will continue until we decide to make a change. If we continue to mishandle our money our children will learn to do the same thing. And credit card companies are happy for the trend to continue as they rake in huge interest charges and fatten their pockets.

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Understand The Defined Story On Debt Reduction And Consolidation

By Frank Froggatt

Maybe you've detected the words " debt consolidation and debt reduction"plentiful in media today. Numerous people Nationwide are hurting financially right now, and if you're among them, knowing the differences between those terms might prove invaluable.

Let's first of all explicate debt consolidation. Debt consolidation is when you draw a loan against your home or get an individual loan and apply it to pay all your debts so that you have got just one monthly requital to your creditors. Usually you seek to receive a loan that has a smaller interest rate than your current accounts do so you are saving money. Additionally if you shut all of your accounts, entailing you can't utilize them any longer, you can get your percentage rates at your creditors brought down, as well as requitals, late fees and other breaks

When it comes to debt reduction though, you must be exceedingly sure to count your options. You see debt reduction will fundamentally demolish your credit rating. Now this isn't a problem if you already sustain a terrible score but if you have got a decent score, well debt reduction isn't the best direction to go.

If you move ahead with debt reduction, you phone the company and furnish them with all your financial data. After surveying it, they furnish you with an appraisal of what they conceive they can get your lenders to conciliate for. For illustration, lets state you owe Visa $3,000.'' Accepting the card issuer into account, the reduction party could pronounce that they can negotiate for 1,500.'' But first off you will have had to not made any payment at all - the reduction company will state to you the time period, maybe up to six calendar months.

In that allotment of time your creditors will naturally send letters, cards, Electronic Mails and will be calling on the telephone, trying to make you ante up. Don't. Instead the debt company will tell you to lay aside a particular sum of cash during this timeframe which you will then expend to pay off the resolution amount.

There are a bunch of problems with this debt reduction though. First the company is advising you to save money for six months, but chances are if you get this bad into debt you won't be able to save cash very well. Following they offer to save the cash for you, you send them the payments every month and they save it in an account for you, to use to pay back the companies.

This is where you must be genuinely heedful to make certain the company is true, because they are dealing with your funds and your credit. In most cases it isn't advocated to stick to a debt reducing plan just because you have so much at risk, still if you feel you must, merely be mindful and do your research.

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Steps To Creating Home Solar Energy

By Daniel Shermann

So you have decided to do your part in saving the environment by switching to home solar energy. First and foremost, kudos to you! Solar energy for the home is one of the most practicable ways just about any regular person can do in the crusade to save the world's dwindling energy natural resources. Here are some basic tips you have to know in order to solar power your home:

Step 1: Research

When planning to buy anything, the most logical consumers would first do a bit of research regarding product. The same consumer attitude should apply when deciding to shop for a home solar energy system. Basic considerations include:

1. How much money are you willing to spend in solar powering your home? 2. In what part of my home will I place my solar energy system? Do I need to renovate part of my house to make room for all the equipments of the solar system? Will there be any major aesthetic changes made to my home once the system is put into place? 3. What part of my home is the sun able to maximally reach? (Most preferred and logical location for panels is the roof although there are a few homeowners who choose to place their panels adjacent to their homes.) Step 2: Custom fit

Do you want to solar power your entire home or only a part of it? If you plan to have enough solar energy for only a certain room (e.g. living room only) of your house just to offset your increasing electric bill, there are companies that sell equipments piece by piece.

However, there are also companies that offer complete custom fit home solar energy systems that are suitable for homeowners who have decided to solar power their entire residence. Custom fitting your system is recommended in this case because the company has the necessary knowledge on how to maximize the use of your system.

Step 3: Solar Power Contractor

When selecting a solar contractor, longevity in the business is a key factor. The size of a solar power company is irrelevant; what is more important is their experience in installing and maintaining their systems.

Ask as many possible past and present consumers about their experience with companies. Take down notes and information to help you make a wiser decision regarding your solar dealer.

Step 4: Solar bidding evaluation

To lure customers, solar energy companies will provide biddings. It is your responsibility, as an astute consumer, to make sure that all the biddings follow the same criteria for fair evaluation.

Carefully and thoroughly read about installation process and cost, primary equipments and accessories used, and warranties offered by each home solar energy dealer. For water solar heating systems, information about estimations of yearly energy saved in kilowatts per hour should be stated. Electrical solar system bids should include information about system size and yearly energy produced. Make sure that all of the dealers have met all legal requirements in your locality and tax credit applications.

Now that you have learned some basic yet very important facts about solar energy, may you be guided in your selection and thank you for supporting solar power!

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Types of Bad Credit Loans

By Trinity Preston

If you have bad credit, you might think that the options for borrowing money are pretty much non-existent. It's true that people with bad credit are considered risky to lend to, but it doesn't mean that there aren't options for borrowing money and rebuilding your credit. There are actually a few common types of bad credit loans that will let you borrow money and start building a better credit score.

If you want to know the most common type of bad credit loan, it is probably the personal loan. Personal loans are usually issued in smaller amounts and on a short-term basis. They are sometimes referred to as payday loans because they help get you money before your payday, but you usually need to pay it back by the next paycheck.

Personal loans are also called guaranteed loans sometimes. This term probably comes from the fact that they are really fast and easy to get. Almost anyone can qualify, including people with bad credit. The loans usually have a high interest rate since the people borrowing the money are usually considered high risk, but if you need money fast, personal loans can help. In order to qualify, you usually need to be at least 18 years old, provide proof of your steady income, and be a citizen of the United States.

Most lenders don't check your credit history if you are applying for a government student loan. If you plan to attend school and need to borrow money, a government school loan is the best way to go not only because they will issue it to you even if you have poor credit, but also because the interest rate will probably be lower than you could find from a private loan.

School loans are a good option not only because they are readily available if you have bad credit, but also because they are usually issued with a low interest rate. For people with bad credit, loans with low interest rates are almost impossible to come by. Government guaranteed school loans make loans with low interest rates a possibility.

For people with bad credit, opportunities to borrow money might decrease. However, there are still ways for you to be able to borrow money and improve your credit rating. Some of these common bad credit loans might be the answer to your financial struggles.

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Facts On FHA Mortgage Loans

By Frank Taylor

If you've decided it's time to make your first home purchase then it is also time to shop around for the best mortgage loan deal. Usually, the best loan options you'll find will be FHA mortgage loans. FHA is an acronym standing for Federal Housing Administration. This organization was created by the government in 1934 in an effort to help more people who want to be home owners realize their dream.

FHA loans work because they insure the loans lenders offer which lessens the risk to the lender. This encourages banks to be willing to look at a candidate who might be otherwise considered too risky because they don't have equity built up in a previously owned home. The FHA doesn't actually issue the loan, they just support those that do by taking on the responsibility of the loan should the borrower default on it.

Most first time home buyers have had to struggle to come up with a down payment. It can take years for the average person to save up a twenty percent down payment on a house. FHA mortgage loans don't require as hefty a down payment as twenty percent. In some cases, they will accept as little as three to five percent down. This is a much more reasonable number for people to come up with.

Lower interest rates mean that the entire cost of the loan is less than it would be with a higher interest rate. Lower interest rates are also beneficial because they lower the monthly payment on the mortgage as well. Lower monthly mortgage payments usually means that more people will be able to afford the payments and can move on from renting and begin putting their money towards something they can owe entirely some day.

FHA mortgage loans also help people get into homes because they don't require a big down payment on the home to qualify. Depending on the market, banks will require sometimes as much as twenty percent down on a home as a minimum to be able to qualify for a mortgage. With an FHA loan, that down payment expectation is as little as three to five percent. This is a huge financial relief for those who have been trying for years to save up enough to get into a home.

One of the biggest mistakes you can make before purchasing a home is making some other kind of big purchase on credit. Your interest rate will reflect your credit score. If you make a large purchase, you increase your debt-to-income ratio. This will lower your credit score, sometimes dramatically.

Owning a home can be one of the greatest feelings in the world, especially if you don't get in over your head financially. An FHA mortgage loan can help you get the home you need at an affordable rate.

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Tips on Sending Money to China

By Chloe Banks

Opportunities for Chinese emigrants grow as China's economy grows. Sixty percent of overseas Chinese professionals live in the U.S.

Chinese immigrants to the United States are able to send money to China more frequently and in greater quantity than they have been able to in the past. This group of recent emigrants sending money to China account for the largest amounts of remittance money sent from the US back to their native country.

There are several ways to transfer money from to China from the U.S. Seventy-five percent of the remittance market is captured by formal service providers, mainly China Post, the commercial banks and rural credit cooperatives, and the remaining 25% is carried home or sent through other channels.

If you are sending money back to a trusted relative in China, one way to do so would be through acquiring an ATM or debit card for them that is linked back to your checking or savings account.

If you do not want the recipient to have access to unlimited funds, then you may want to look into a pre-paid debit card, which works just like an ATM card except that it is loaded with a specific amount of money which you refill when necessary.

Another option when sending money home to China is through a wire transfer with any U.S. Bank. This can often take several weeks to process, as well as cost more than some other options.

Another way to send money to China that is fast and easy is through an online service such as ATM Cash. This allows you to send money at any time from the convenience of your own computer.

Many of the facilities that deal with international funds transfers to China are based on networks that have expanded, thus making it easier and more efficient to send money to both urban and rural areas in China.

There are however increased fears of money laundering and criminal activities with some money transfers. Because of this the U.S. government has tried to control the banking business more closely. Money sent to china cannot exceed USD 3,000 per day. Also, when sending money by check, you cannot exceed 10,000 US dollars.

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Home Budget Planning: How To Avoid Credit Card Debt

By Jenni Snook

Credit card debt is not something that is unavoidable, and despite it being the cause of over a million bankruptcies every year, it is something that can be successfully avoiding with some simply home budget planning on your behalf. This is because many apply for and obtain credit cards without fully understanding the contract. Moreover, people with credit cards go on to spend like crazy without keeping track of expenses, miss payments, and get the shock of their lives when they have to pay annual fees, and as a result their debt increases enormously.

Many people are quick to blame the credit card companies for their dire situations, but it's about time that people take responsibility for their own actions.

One case of carefree spending does not rack you up a significant amount of debt. The ease with which you can continually add purchases onto your card without documenting the amounts you spend is what adds up to a large debt. Therefore, it's possible for you to get out of credit card debt. The goal is to spend less than what you earn. By having this in mind, you can start planning to reduce your debt over the long term.

Exercising your won't power is probably more effective that in trying to exercise your willpower. You have to figure out what you need and use your income to work out whether it can be afforded. Don't forget to reward yourself from time to time as it will help you to stay on track. You will have to focus a lot of effort and attention on reducing and eliminating your debt, however, it will only be a matter of time before you start seeing significantly results which may surprise you.

At the beginning, it will not be easy to keep to your debt reduction plan, but keep in mind that at the end of it all, it will be worth the effort.

Even after successfully reducing your debt, it's important that your old habits don't re-appear. The only way you can end up being the winner in this situation is by focussing all your energy on sticking to your new spending habits. It's a bit like dieting, it's hard in the beginning learning the new habits, but the result will be well worth it when you find your finances healthy again.

You can resolve a lot of your financial problems in your life with some simple Home Budget Planning and by not spending money you don't have is a great start!

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Why Toronto Condominiums are good

By R. Kim

If you are looking for a home in Toronto, Ontario, you should first research the area. Toronto hosts the largest underground shopping complex called PATH. PATH is home to about 1,200 shops, services and restaurants. It's an ideal place for shopping, dining or just enjoying a stroll along the walkway.

Toronto has a rich history that you, as a new resident, would find fascinating. There are plenty of museums and special events to keep Toronto a continually new experience. If you love food (and who doesn't?), you will want to visit the St. Lawrence Market, considered one of the world's best food markets by Food and Wine Magazine.

When researching for a home, don't forget to look at Toronto condominiums. The average price for a Toronto condominium is $284,802. However, they can range anywhere from $160,000 well into the millions.

If renting is your preference, Toronto Condominiums can rent anywhere from $250 to $7,000 per month. The average monthly rent for a Toronto condominium, however, is around $2,500.

With almost half the population being foreign born, Toronto is known to be one of the most multicultural cities in the world. As a result, the city has a large diversity of languages and cuisine. Toronto is the largest city in Canada and, with a low crime rate, has been and has been named in recent surveys as one of the world's most livable cities. The job market is booming, offering plenty of opportunity for the job seeker to offer his or her trades and skills.

If you are looking for a home Toronto condominiums offer great solution. However, it has Canada's highest cost of living. But you will find a condo that fits your needs, you can't get wrong with purchasing a condo in Toronto. Make sure you do a lot of research on line or in the newspaper, you want to make the right choice on the first try.

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Websites with a Secured Loan Calculator

By Madeline Monarch

Websites specializing in different loans may provide a secured loan calculator directly on their site. With this calculator you will be able to understand the approximate cost of borrowing in terms of the monthly cost, in direct relation to the interest being charged. Simply enter the amount to be borrowed, enter the repayment period, enter the interest rate and then press calculate. Lenders will usually have their interest rate plugged into the calculator making it easier.

When you find a secured loan calculator online, you will see that it offers a great way of gathering information that should be able to help you make the right choice. Most of these calculators are not complicated to use and are a great resource when you have many quotes to compare. They even have secured loan calculators for auto loans.

When it comes to secured loans interest rates could vary greatly. Go to as many websites and get as many quotes as possible to compare with one another. It is a very good idea to look for the best method to suit specific needs and you may find the common lining among them all. When going this route you will increase your odds of finding the best deal and the lowest interest rate.

Interest rates can vary so get as many quotes as possible to compare with one another. It is a very good idea to look for the best method to suit specific loan needs and increasing your odds of finding the best deal possible and the lowest interest rate.

When a larger amount of money is to be borrowed over a longer period of time, is usually a secured loan, compared to that of an unsecured loan or a personal loan so it is good to look at how this type of loan works. A secured loan calculator will determine how much interest will be added to the cost of borrowing a specified amount within a repayment period.

A secured loan offers a larger amount of money to be borrowed over a longer period compared to that of an unsecured loan or a personal loan. A secured loan calculator will help you determine how much interest will be added to the cost of borrowing a large amount with a longer repayment period.

Be sure not to overlook the other factors within the loan that could mean additional costs added where you may not have been expecting to pay more. Examples of such will include repayment fees, payment protection insurance and any others you were not expecting that the secured loan calculator cannot show you. You can always buy payment protection insurance later if you choose.

The same website that you have found your secured loan calculator should include the listed facts pertaining to the loan and any small print, with which you should become familiar and are usually included in the quotes for review and approval by the customer.

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