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Articles Archive for April 2006

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[9 Apr 2006 | No Comment | 363 views]

Every cent that doesn’t have to be spent paying interest can be used to eat into the size of your debts. So where does the bit about credit ratings come into it?
It’s a basic rule of money. Lenders who give loans to people with poor credit ratings are taking a greater risk that they won’t get their money back.
If you have a history of being unable to keep up with loan repayments, most lenders won’t touch you with a bargepole. And those who do will want a hefty reward for their ‘bravery’, in the form of….you’ve guessed it, higher interest.
That’s why those who have a poor credit rating have to resort to expensive ‘sub prime’ finance if they want to borrow money. Being charged a high rate of interest is their punishment for having a poor credit rating.
But this rule also works the other way. The better your borrowing record …

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[9 Apr 2006 | No Comment | 283 views]

If you want to get out of debt and stay out of debt, credit cards are extremely dangerous. It’s all too easy to say yes to everything that you like the look of in the shops, and end up sticking it on your card.
Why? Because it doesn’t feel like spending money!
You don’t have to cross the psychological barrier of handing over a thick wad of notes every time you make a purchase. Instead you hand your card over, the assistant swipes it and then hands it back to you. You’ve not actually parted with anything.
And what’s more, credit cards give you the opportunity to get the goods home and use them long before you have to start paying for them. This can be up to eight weeks later. So by the time you realise you can’t really afford these items, it’s too late to take them back.
Plastic Money
It’s promoted on …

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[9 Apr 2006 | No Comment | 337 views]

Unfortunately there is a growing trend in the US to blame someone else for our own mistakes or bad decisions.
If you build your house on the beach and it gets blown over by a hurricane, FEMA will take care of rebuilding it.
If you eat too much, some nice trial lawyer will be happy to sue McDonalds or Ben & Jerry’s for making high fat food that you decided to eat too much of.
If you smoke, it was the tobacco makers’ fault and there’s billions to be made on those class action lawsuits.
And on and on it goes.
There seems to be a growing trend in the financial field to blame lenders for the terrible plight too many borrowers are in. After all they had the gall to market a product, credit, that they wanted you to use so they could make money.
They bombard college students from the first day of school …

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[9 Apr 2006 | No Comment | 336 views]

Travel has its payback in the form of reward credit cards. Choosing the best reward credit cards for yourself can be intimidating, and you should be guided by some factors that are personal to you. How do you choose and analyze THE travel reward credit card that suits your needs and lifestyle best? How do you, in fact, analyze reward credit cards in the first place?
Reward Credit Cards Should be Tailor Made for You
For one thing, the travel rewards companies work on the assumption that you want something – and they can give it to you. The problem is that most of us don’t know what that ‘something’ is and tend to lean towards fat, attractive packages that we may never use. For example, a travel reward credit card that offers you discounts on airfares might not be very attractive to a traveler whose airfare is paid for by his …

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[9 Apr 2006 | No Comment | 304 views]

Have interest rates dropped since you first bought your house? Are you in a considerably better place financially and credit wise than you were when you first got your mortgage? Are you looking for a way to lower your monthly mortgage or loan payments? If any of the above are true, then it may be time to take a closer look at a refinance mortgage.
A refinance mortgage, or ‘refi’ as it is popularly referred to, is a loan taken out specifically to pay off an existing loan for the purpose of lowering your current monthly payments – or reducing the total amount of interest that you’ll pay. Refi loans become more popular when interest rates drop significantly, though there may be good reasons for you to consider a refinance mortgage loan even if the general interest rates have remained the same or increased. How does refinancing your current mortgage lower …

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[9 Apr 2006 | No Comment | 324 views]

Florida home equity Loans – Helping You When You Need It
Florida home equity Loans are important resources for many consumers who are looking to expand their home, payoff debts, attend college or meet other financial obligations known only to them.
The reality for most consumers is that their home is their largest asset and the equity in their home is like sleeping on a pile of money that they are unable to access. Home equity Loans, however, are a great way to access that money and make that money work for you.
Financial advisors often advise clients to look into home equity loans in order to meet their financial obligations. The reality is, most home equity loans have a significantly lower interest rate than many consumers are paying for credit cards, car loans and other loans. Paying off these loans with home equity loans can help ease the burden and make your …

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[9 Apr 2006 | No Comment | 292 views]

Synchronize your brain with mortgage dictionary to understand the basic concepts of mortgage. Everybody will finance a mortgage loan in some point of life. In fact, a large percentage of the total household credit in North America constitutes residential mortgage. Since purchasing a home is substantial amount of money, Residential Mortgage is the most common way to acquire a home.
Mortgage Loan
The physical property holds and secures the loan. It is a loan to finance the purchase of property, or real estate in a specified period payment and interest rates. The lenders serve the right to repossess the property or real estate in case of default.
Face Value
The borrower promises to the pay the original principal amount which is the face value of the mortgage.
Mortgagor and Mortgagee
Mortgagor is also called the borrower or owner, while Mortgagee is also called the lender. In the mortgage contract, it states the lender who serves the …

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[9 Apr 2006 | No Comment | 244 views]

So you’ve shopped around and have found numerous possibilities of mortgages that might work for your situation. You’ve taken into account how much money you want to borrow, perhaps on a specific property you have already picked out or within a price range that you have determined you can afford. You have saved up for a down payment, or have decided to find alternate financing that does not require 20% of the purchase price for a down payment.
There is so much information, in fact, that it can be rather overwhelming. This is when you need to organize and compare the mortgages that you are considering.
As long as you have all the information, terms and fees that are associated with each of the mortgages (which you should, and if you don’t, then ask the broker or lender for a detailed itemized list) then you can do a fair analysis and comparison …

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[9 Apr 2006 | No Comment | 289 views]

Typically, option arm mortgage loans give the consumer four payment options each month – a 30year fixed payment, a 15 year fixed payment, an interest only payment and a deferred interest or minimum payment.
The 30 year, 15 year and interest only payments are based on the fully indexed rate. The fully indexed rate is calculated by adding the margin to the index. The index would most likely be the Libor, MTA, COSI, COFI, or CODI.
Here’s an example:
Let’s say you have a margin of 3.15 and an index of 3.32. This would give you a fully indexed rate of 6.47% (3.15 + 3.32 = 6.47). This is the rate that is used to compute the 30 year, 15 year, and interest only payments.
Depending on the lender and loan program you select, the deferred interest or minimum payment could either stay fixed between 1% and 2% for 5 years or the PAYMENT …

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[9 Apr 2006 | No Comment | 315 views]

From looking at the interest rates this week the home equity loan and home equity line of credit rates, have fallen slightly form they were this past couple of months… is this going to last? Who knows?… but it seems from reading some of the news feeds of other websites it may be down to the fact that lenders are finding the loan market beginning to go a little quiet (it probably has something to do with the 15 interest rate hikes the Federal Reserve has issued in this past 2 years) and they’re drumming up some extra business by offering lowering interest rates to get people to borrow.
The bad news! If you look carefully and work out your figures you’ll actually see that in the long run the interest rate is actually in step with the prime rate. So.. borrower beware if you thinking about taking a loan out …