Tag Archive | “Zero”

0% Down Payment Era Has Come to an End

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Currently, the facility of availing the option of zero percent down payments on home formally does not exist anymore or virtually has shown a very sharp decline. This has raised the cost of purchasing home tremendously. In this regard, a research report has unearthed the fact that in the nine main cities of U.S, on average the banks have enhanced the down payment of the house by twenty two percent in the year 2010.

Down Payment

The Down Payment is Significantly Higher than the Past

The amount of down payment for home is significantly higher now than that of the amount charged few years back. In fact, there has been an increase of around four times in down payment in comparison to same couple of years ago.

Statement by Stan Humphries

It has been stated by an Economist; Mr. Stan Humphries of Zillow (Real Estate Company) in his interview to the Wall Street Journal, “The middle ground buyer is the one having to fight to get a conventional mortgage”. It does mean that now the option of mortgage has not been in the range of people who belong to middle income strata. So far, Zillow has not offered any comments on the statement of Stan Humphries.

There is no doubt about the fact that currently with the considerable increase in down payment has made it pretty difficult for people to purchase a home. This has also posed threat to people who would like to sell their homes.

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0% Credit Card: Purchase vs Balance Transfer Cards

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There are two types of 0% credit cards in the market. 0% balance transfer cards and 0% purchased cards. The rates of both of these are of special and promotional nature but still there is a significant difference. One must not get dazzled by the shiny and attractive rates being promoted by credit card issuers. Only when you understand the difference between balance transfer and purchase cards, you will be able to avoid the hidden fees and charges.

0% Credit Cards

Zero percent is just a marketing gimmick of credit card companies to lure new customers. If you take a closer look at the fine print, The 0% rate being boasted by banks is just for the promotional period of approx 3 – 9 months. After that, they start charging you “Huge” and “real” fees and interest charges.

You can not Borrow at Zero Percent!

There are no free lunches in the world, right? similarly, You can not borrow money on 0% interest rate. Interest rates and fees on your credit cards are the only source of income for banks and credit card companies. No bank or credit card company can survive by lending money without charging anything for it

0% promotional rate is for limited time only

After the promotional period is over, the banks starts charging you with normal rates. Length of promotional period can vary from card to card and bank to bank. Generally it can be anywhere between 3 months to a maximum of one year(which is very rare).

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June 2011
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