Tag Archive | "insurance policy"

Best Loan for Homebuyers

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Today there are many banks who are offering borrowers loans to buy a house for them. Most of these lending companies demands principle money along with interest so it is very difficult for a person who is earning limited money to apply these loans. Unlike this policy there are some banks who are offering interest only mortgaging loan to those people who wish to buy a house. In this loan a consumer has only to pay interest money to bank for years so such a person can save money and use it for better future and can fulfill his dream of house. So if you are a regular employee and you want to buy a house go for this loan as it suits you best.

Loan for First Timers

Loan for First Timers

Those home buyers who are buying house for the first time should consider this loan because they can enjoys benefits of long time agreement. This is a good deal for the first timers because you have to pay principle money after a long time and you have to only pay interest money at very low interest rate to bank. So most of the experts and financial advisors, advise first timers to apply for these loans as it costs them less as comparison with other loans.

Save Money

By applying interest only home loan a consumer can save money and use it for other purposes. A person can use this money on settling purpose because a person requires money to settle in a new place. A person can also save money which he might use in case of any trouble. A person who applies for interest only home loan can plan a better future for him and his family and can support his children’s education. Read the full story

Home Bridge Loans: Buy Home of Your Dreams

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Bridge loans are temporary loans that bridge the gap between the sales price of a new home and a home buyer’s current home, in the event the buyer’s current home is not sold yet. Mortgage price of present home makes a person eligible for taking bridge Loan. If the worth of existing home is requisite; a person can get loan to buy a new home. The key to bridge loan financing though is the exit strategy. The more certain the repayment plan is, the more lenders will be interested in the deal and as a result, the lower the cost of borrowing will be. However the drawback of bridge loan includes a high interest rate and mortgage value and the other cost that are amortized over a short period and various other fees and sweeteners.

Possible Resources For Collecting Funds Other Than Bridge Loan:

Possible Resources For Collecting Funds Other Than Bridge Loan

Although bridge loan is effective vehicles to immediately capitalized on a purchase opportunity still there are many other less expensive ways to get money including bonds; stocks; 401k funds; retirement plane; insurance policy; or any other possessions which would be enough for home purchaser to collect respective money to buy a new home rather than using the option of bridge loan. Still if funds are not enough home buyer can take help from his family members or other relatives or friends. If none of scheme is accessible the only option with which a home buyer left is bridge loan; to buy a new property without selling pervious one immediately.

Drawback Of Bridge Loan:

Certain limitations are there in bridge loan policy that only a restricted amount of money would be provided; i.e. the minimum value of new home would be the maximum cash provided by the lending institutions. The person who wants to take bridge loan would not be entertained by any other amount of cash.

Conditions Of Bridge Loan:

Before taking the bridge loan there are certain conditions which a home purchaser should agree upon. Foremost one is that homebuyer’s current habituation should be in process of selling otherwise he would be declare as ineligible for bridge loan. Read the full story

How to Obtain a Micro Business Loan?

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Te get such loans can be very easy provided that proper guidance is available for each step to be followed. The procedure to get such loans involves many complicated documentations and terms and conditions. For a common it might be difficult to understand all this, so a proper guidance will make it easy for him to get the loan. There are many government agencies and also private consultants which are providing such facilities of guidance to masses.

Procedure for Getting Loan

 Procedure for Getting Loan

Before you apply for loan there is certain documentation that must be prepared before hand and must be prepared well. The procedure starts with a thorough explanation of the company, a presentation of individual collateral, and a map on how to pay back the rented funds. The idea of the fresh company, the possessions it starts with and the probable service or product and the way it will make income is vital to the portrayal of the planned venture.

Future Planning

When talking with a provider, the customer must have a thorough map of action of his organization. Detailing the services and products offered is an excellent start. Particulars of the future map of action will be a valuable asset to provide to the provider when the opening for getting micro business loans is offered. Keep in mind all expected expenditures ,so that payback schedule is not disturbed.

Terms and Conditions

Loans normally require collateral prior to their approval, particularly with the preeminent possible interest tariff and terms. When getting a micro business loan, any private or business guarantee that can be offered will be helpful. If there is more than one holder or investor, collective private collateral will offer more opportunities. Read the full story

Drawbacks of Reverse Mortgage

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Reverse mortgage is the ideal tool for retired or elderly citizens to take out an income in any form i.e., installments or lump sum by putting equity which they have raised in their homes. It is really helpful for elderly citizens who are in great need of income to meet their everyday expenses, but still it has some drawbacks. These drawbacks are listed below:

High Fees & Charges

Reverse Mortgage

Individuals taking out reverse mortgage loan putting the equity on their home, but still banks charge them a high fee to initiate their transactions. In reality, ReverseMortgage.Org stated that as a portion of a reverse mortgage, homeowners may sometimes be required to pay of an initiation fee that is $2,000 or 2% of the total amount of loan. Many homeowners add this fee into the amount of loan and pay off it with interest on loan over the term of loan.

In addition to this fee, there are several other fees that homeowners are required to pay off. These fees include appraisal fee that can be of several hundred dollars, a recording and credit report charge that is about $200, a flood certification and a pest inspection fee that is about $150. Homeowners may be responsible to buy mortgage insurance coverage and for this they have to pay off a service fee that ranges from $30 to 435 per month.

Transfer of Your Family Home to Your Children

Usually parents want to pass their family home onto their offsprings. However, with reverse mortgage even though the lenders do not take the home’s title, borrower has to pay off the mortgage within a given period of time with interest. In most of the cases, borrowers repay the loan by selling their home and after that they turn over the proceeds or a part to their bank.

Many families buy an insurance coverage on the homeowner and they use their adult child or the lender as the beneficiary. This strategy helps such families to repay the bank without having to sell their home upon the death of the homeowner. It is advisable to you to consult with an authentic and expert insurance agent to find out the best option to make sure that if such insurance policy is good enough to fulfill the outstanding debt.

Affect on Future Financing Abilities

An individual is said to be creating a big liability when they start a reverse mortgage. It is because they have to repay the loan with interest. However, many borrowers do not realize that they are more likely to hurt their future financing ability by establishing a reverse mortgage.

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10 Simple Ways to Save On Renters Insurance

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Insurance Research Council survey in 2006 revealed that 96% of the people who own their own homes have a homeowner’s insurance policy, on other side the people who live in rented homes from them only 43% people have a renter’s insurance policy. Renters insurance is so much less expensive than homeowners insurance. Renters insurance policy only cost $16.26 per month and it is one of the greatest values on the insurance market today. But still there are many ways to make a renters insurance policy more affordable.

Here are the 10 ways from which you can save on renters insurance:

1 – Make a Comparison of Renters Insurance Quotes

The best to find a affordable renters insurance policy is to compare their quotes and coverage. You can get renters insurance policy quotes online, compare them, and determine which is most suitable for you in terms of cost.

2 – Higher Deductible Will Lower Your Renters Insurance Premium

A deductible is the amount, which you have to pay before the insurance provider will make payments on claim. It’s the rule, the more the deductible will be higher, the lower the premium will be.  Its good for you to determine the deductible, renters insurance deductible usually start at $ 250 and go up from there. Read the full story

Credit, ATM and Debit Cards: what to do if they are stolen or lost

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ATM, Credit and debit cards provide a convenient and easy way to use money without the hassle of carrying a great amount of cash in hand. In case the cards are stolen or lost, The Fair Credit Billing Act (FCBA) and the Electronic Fund Transfer Act (EFTA) provide the procedures to act upon.

How to Limit the Financial Loss

As soon as you discover that the ATM, debit or credit card is missing, contact the card issuer. Most of the companies have a 24-hour help service for such issues. Report your loss to the customer service representative and then follow up by writing a letter to the company including your account number and the date on which you reported the missing card.WOMAN_OnPhone-LostStolenCard

It may by helpful to check whether your homeowner’s insurance policy covers the card theft. If not, some insurance companies do allow you to change your policy to include this.

Credit Card Loss or Fraudulent Charges (FCBA):

In case you report about the missing card before it is used by someone else, the FCBA states that the card issuer cannot charge you for any unauthorized use. On the other hand, if the card has been used before you reported, the maximum charges laid against you can be $50 per card. If the card number has been used only, without the card itself, you cannot be held responsible for any charges.

Also, review the bills carefully that come after the card has been lost. If you find any unauthorized use, write a letter to the card issuer including all the questionable charges, your account number, and the date on which you reported the card missing. Send this letter to the billing complaints department rather than the billing department itself, and do not send any payments unless you are requested to do so.

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Top 10 Mistakes to Avoid When Buying a House

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Here is a list of  top 10 mistakes to avoid when buying a house. Most of the people will spend their biggest lifetime investment to buy a home. Taxes, Annual mortgage and insurance can cost from 25% to 40% of your gross annual earnings.

My idea of writing this article is to educate or help you, so that you can protect yourself, when you make take this important decision of your life.

buying a new house

1. Looking for a home without being pre-approved.

Many people don’t have a clue that Pre-approval and pre-qualification are two different things. In the pre-qualification process, the loan officer asks you a few questions, then hands you a “pre-qualification” letter.

However, the pre-approval process is much more time consuming and lengthy. During this process, all work associated with obtaining the full-approval is virtually done by the mortgage company. Since there is no identified property to purchase, however, an appraisal and title search aren’t conducted.

When you’re pre-approved, you have much more negotiating terms to debate over (with the seller). The seller at this stage knows that you can close the transaction because a lender has carefully reviewed all your relevant information (income, assets, credit etc).

In some cases, being pre-approved can make the difference between buying and not buying a home.  Also, when you are in a better position to negotiate,  you can save thousands of dollars

Most reputed Realtor do not show prefer to show homes to people unless they are pre-approved.  They do not want to waste their, your or the seller’s time.

There are many mortgage companies that can help you become pre-approved, with minor charges.  Usually they will check your credit and verify your income and assets.

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