Tuesday, November 28, 2006

Finding a Home Loan with Bad Credit

Finding a home loan that is affordable when you have bed credit can seem nearly impossible and can be very frustrating. However, there are lenders out there who will approve your home loan regardless of your credit history. Yes, there will be some fees and catches associated with this, but it is possible. There are some things you can do, however, to help you buy a home and be approved for a home loan even if you have bad credit. The following suggestions will prepare you for getting a home loan even with poor or bad credit.

Home Loan Tip #1 Online Lenders
Finding a home loan can take up a lot of time going from lender to lender. So, it’s better to shop online for a home loan and have home loan lenders bid for your business. You supply your personal information and then home loan lenders respond to you with their basic home loan rates considering your personal situation. Then, you will be able to quickly choose between a variety of options for your home loan and find the best one for you. Remember, if you have a high interest rate you can always refinance your home loan once you get your credit in shape.

Home Loan Tip #2 Down Payment
A home loan approval for people with poor credit generally requires a 10-20% down payment. Basically, the higher the down payment you can make the better home loan rates you will receive. When you make a large down payment you have immediate equity, which goes a long way to you being approved for a home loan.

Home Loan Tip #3 Mortgage Insurance
If you have mortgage insurance your home loan will more likely be approved. The reason for this is home loan lenders want to feel secure when making a home loan, and if you have bad credit then that security is not there. HoweverScience Articles, if you have mortgage insurance the home loan lender feels more comfortable making the home loan to you despite your bad credit.

Home Loans

Buying a home remains the great American dream. Home ownership rates have been exploding in recent years, spurred on by the historically low interest rates in the home mortgage market.

Home prices have been rising at far faster than inflation, especially in major urban areas such as San Francisco, San Diego and Chicago. This means that not only can that home you’ve always wanted put a roof over your head, but it can provide you with a great investment as well. For people new to the mortgage market, buying their first home starts with finding the best home loans.

All potential homeowners should take some time to research home loans before calling their local realtor. There are a dazzling array of choices available when it comes to home loans, and finding the right mortgage for your needs can be difficult. Approach your upcoming home purchase with the same seriousness you apply to other major purchases. Your home will most likely be the biggest single investment you ever make. Take the time at the beginning to educate yourself about home loans. It will be time well spent.

Home loans are available from a wide variety of sources. These sources include banks, savings and loan associations, credit unions and mortgage brokers. Shop around at all of these sources to find the home loans with the lowest interest rate and lowest costs.

You will also have to decide between fixed rate home loans and variable rate home loans. Variable rate home loans are often advertised with extremely low “teaser rates”. These rates are used by lenders to get your attention and lure you in.

Before signing up for a variable rate mortgage, make sure you find out what the interest rate cap is. Variable rate home loans are usually based on an underlying interest rate, like the prime rate. The interest rate you pay will typically be the prime rate plus or minus a certain percentage. The variable rate mortgage will have a cap above which the interest rate cannot rise. Find out what that cap is, then use a mortgage payment calculator to see what your monthly mortgage payment will be at that rate. If you cannot afford the monthly payments at the maximum interest rate, you may not want to take the mortgage loan. While it is unlikely that interest rates will rise sufficiently to make the maximum interest rate kick in, it is always a possibility.

Variable rate home loans can be a good choice if you believe interest rates are likely to fall. In an environment where interest rates are steady or rising, they may not be so good a choice. You may also want to consider a variable rate mortgage if you do not plan to stay in your home more than five years. For instance, if your job transfers you every couple of years, you could probably get away with a variable rate mortgage and take advantage of the lower interest rate. When you move and sell your home, you will probably realize a gain due to rising home prices.

On the other hand, fixed rate home loans have a set interest rate for a set period of time, generally either 15 or 30 years. The interest rate does not change, therefore you will always know what your monthly mortgage payment will be. You are protected from rising interest rates with a fixed rate mortgage. If rates fall significantly, you can always refinance your mortgage loan to take advantage of the lower rates.

If you can afford the payments, 15-year home loans can substantially lower the amount of money you will ultimately pay for your home. When you run the numbers on a 15-year versus a 30-year home mortgage loan, you may be surprised at how affordable the 15-year home loan can be. Your mortgage payment will not double if you go with a 15-year mortgage versus a 30-year. This has to do with the affect of compound interest. You are paying far less interest in the long run on a 15-year mortgage.

Whatever type of home loan you decide on, the most important thing is to take that step which transforms you from a mere renter to a home owner and builder of equity. There are a great many home loans out there, but once you find the right oneBusiness Management Articles, you will find the rewards of home ownership well worth the time and effort put forth.

Online Savings Account Basics

Saving accounts are always a good thing, in the past it used to take some time until you could have opened an account and it would be time consuming to check up on it every now and again, the internet has changed all of this and now internet banking allows you to open your own account with a press a few clicks, and it also allows you to do your research work just in front of the computer screen.

Did you ever have a problem about where to keep your money? Well, maybe it is time to consider applying for a savings account. The most convenient way of keeping and saving money is by going to your local bank and opening a savings account. Savings accounts offered by banks pay interest; however, you cannot issue checks against this type of accounts.

Savings accounts cannot be used like money as one would use a current or on-demand account. Nevertheless, savings accounts commonly offer higher interest rates than on-demand accounts and provide unrestricted access to funds even without the check-issuing privileges. Savings account transactions are usually summarized in either a passbook or a bank statement mailed to you each month.

Savings accounts comparatively have small opening balances required. There are banks where you could open a savings account for just a dollar; after which, you are given a few days or weeks to raise your account to the required minimum balance, say a hundred dollars a month. These accounts may charge you for maintenance fee whenever your savings account falls below the required minimum balance.

The interest earned on savings accounts can be widely varied. Most banks give as little as one-fourth of 1% annually. For most people, interest rates offered by savings accounts are too low, if not downright unfair. If you want to earn higher interest, you might consider opening high-yield savings accounts that are found online.

With the increasing popularity of Internet banking, high-yield savings accounts have become more widespread. High-yield savings accounts have become prevalent, as virtual banks are able to offer very competitive interest rates by maintaining only a handful of retail locations thereby lowering operating costs. Plus, as transactions become more automated and dependent on computer cyber highways, customer service overhead has become negligible for virtual banks.

An online bank account that commonly offers high-yield savings accounts, is relatively simple to open. However, not everybody may feel comfortable with such type of account because it will require submitting personal information over the Internet that could ruin one's privacy. Also, if ever you enjoy walking to a local bank and talk to the bank manager every time you want to make a deposit or withdrawal, high-yield savings account may not be right for you.

How To Find The Best Home Equity Loan Rates

There is certainly no shortage of home equity loan companies on the market today. You only need to turn on your TV to understand what I mean. Every bank, credit union, and financial institution offers home equity loans to their customers. That's great, buy how do you find the best home equity loan rates that are the best for you and your situation?

There is no quick way to find the best rates without taking a little time and doing some research, but the good news is that by doing this, you'll find the best home equity loan rates that will save you the most amount of money.

Most financial and banking experts agree; the best home equity loans have the lowest possible fixed rates as well as tax-deductible benefits.

While an adjustable rate home equity loan may seem like a better deal right now, it won't be over the long term. The fluctuations in interest rates are cause of concern. You have no idea what interest rates will be in 2 years, 5 years, or even 10 years from now. You could easily find yourself paying 5% or more in interest rates down the road. Not a great though to say the least. With a fixed home equity loan rate, you'll never have to be concerned about interest rates.

The Internet can be a valuable resource in finding the best home equity loan rates. As a good start you can look into financial lenders such as Ditech, E-Loan and Country Wide. They are all reputable lenders who specialize in home equity loans. Of course, there are hundreds of other companies that you can check out as well.

Lending Tree and Quicken Loans are two more home equity lenders that can also help. Lending Tree also has a program that will loan you up to 125% of your equity depending on your credit history. They also offer very competitive rates as well.

No matter which lender you choose, the best home equity loan rate will from those who offer a fixed rate of interest along with being tax-deductible. By spending some time searching out your various options, you're sure to find the right loan to suit your needs.

Personal Lines Of Credit Instead Of Overdraft Agreements

However, what not everybody knows is that overdraft agreements tend to carry high interest rates and though the amount are not significant, if you use it often it may cost you thousands of dollars over the year. Personal Lines of Credit are a much cheaper alternative that must be considered.

The fees charged for overdraft can be considerably high and you should know that there are other options available for getting some ease when you run out of cash by the end of the month. Personal lines of credit can be easily obtained and the interest rates charged for them compared to the overdraft fees are insignificant.

Concept Of Overdraft

An overdraft is the amount by which withdrawals or payments against an account exceed the deposits available in it. An overdraft agreement is the extension of credit by a lending institution that allows such withdrawals without penalty fees. Most overdraft agreements have costs that are usually charged in the form of fees.

Nevertheless, there are certain accounts that include all costs in the same fee. Thus the fee you pay includes maintenance charges, card issuing charges, overdraft charges, etc. Other accounts charge an interest rate over the amount you withdraw exceeding your deposits. These ones usually allow for higher withdrawals, usually up to $2000 or more.

Concept of Line Of Credit

A line of credit is a revolving account with a certain credit limit defined at the time of approval by the lender. Up to this specified limit, the borrower can withdraw as much money as needed. If the limit is surpassed, the account is blocked and no more money can be withdrawn even after repayment unless the lender authorizes further transactions.

Repayment is not fixed either. Though there is a minimum payment usually consistent of interest on the money withdrawn, the borrower can repay the amount he wants at any time. That money becomes available again for him to withdraw if needed. The borrower can withdraw as much money as he wants and as many times as he needs provided he doesn’t exceed the pre-defined limit.

Types Of Lines Of Credit

Lines of credit can be secured or unsecured. Secured lines of credit are usually guaranteed with equity just like mortgage loan or home-equity loans. These lines of credit carry incredibly low interest rates which turns them into an inexpensive and flexible financing tool for those who need credit at non-defined times.

Unsecured lines of credit carry higher interest rates and thus are not the best option. Nevertheless, the rate charged for unsecured lines of credit is lower than the one charged for overdraft agreements in most cases. All lines of credit however, secured or unsecured carry variable interest rates that can change according to market variations.

Lines of credit offer a lot more flexibility than overdraft agreements because the amounts in terms of credit are generally larger. Besides, the interest rate is significantly lower which turns them into a much cheaper alternative for satisfying your cash needs. And though they carry the risk of repossession, among lines of credit, home equity lines of credit are undoubtedly the best choice

Ten Tips On How To Save Money

Looking for some good tips on how to save money? Start with the ten listed here.

1. Save money on air conditioning. If there are only a few weeks of hot weather in your area, you may get by with just fans. You can have one blow cooler air up the stairs from the basement. You can also put a box fan in the windows on the shaded side of the house.

2. Save money on airfare. Use a drive/fly combo. It might take two hours to drive to a larger airport, but it could save you hundreds of dollars on the connecting flight.

3. Save on appliances. Buy store returns. Sometimes you can get store returns that still have a guarantee. I once bought a $400 clothes dryer for $99 this way. It had been use for a couple weeks, but still came with a full warrantee.

4. Save on boats. Consider renting instead of buying. Add all costs for a year (insurance, licenses, gas, maintenance, equipment, repairs, dock fees, storage fees, depreciation, trailer, trailer hitch, etc). Divide this by the number of times you are likely to use the boat. This gives you your cost-per-use. Now double this, because you'll never use it as often as you think. If this figure is more than the cost of a daily rental, just rent.

5. Save money on carpet cleaning. Ask your carpet cleaner if he will discount the price for just doing the "traffic" areas. This means he won't move anything, but just clean the visible areas (that's where the dirt is anyhow). Some cleaners may not move things much anyhow, and will charge for the full square footage of the room if you don't ask.

6. Save money on a new car. Bring a friend. His job will be to say things like,"Why don't you wait until next week to decide." This keeps the pressure on the salesperson to give you the best deal going. Your friend can also watch for things you might miss, like extra charges, scratches in the car, etc.

7. Save money on a used car. Pay cash. Paying cash will always save you money on interest, of course. If you have car that is drivable now, with no loan on it, reconsider borrowing to buy a new one. Whatever payment you think you can afford, start putting that much in the bank until you can afford a good used car.

8. Save on electricity. See if your electronics are on "stand-by." Unplug VCRs and other electronics that have "stand-by" modes. They often are using 25 watts even when they are "off."

9. Save on heating costs. Warm yourself instead of the room. A sweater and a cup of tea as a habit can let you knock a few degrees off the thermostat with no loss of comfort.

10. How to save money on hotels? Negotiate. We paid just $6 per night for a great room in a resort town in Ecuador, instead of the usual rate of $12, just because we were willing to walk away. Even here in the United States, where negotiating room rates is less common, we have asked for and received a lower rate a number of times.

Add value to your home with a home improvement loan

Buying a home is a big and important investment for most people, and understandably property owners want to keep their home in good condition and looking great. However, carrying out home improvements can be difficult if finances are tight and this is where a home improvement loan could really help. You can get some really good deals and rates on loans for home improvements these days, which means that more homeowners can now afford to improve their properties in many ways.

Carrying out improvements on your home will not only improve your quality of life, but will also add value to the property. This means that if you decide to sell the house you will make some – or maybe even all – of the money back because of the increase in the value of the home. So, you will get to enjoy the benefits of the improvements for as long as you are living there, but you can also look upon these improvements as an investment, which can be recouped upon the sale of the property.

You can carry out all sorts of home improvements with this type of loan. You might want to fit central heating or double glazing, you may want a driveway or a new kitchen, or perhaps you are looking to have an extension or a conservatory added. Whatever type of home improvements you are looking into, this type of loan can help your ideas come to fruitionFree Articles, enabling you to enjoy your home to the full and increase the value of your home.

Building a Retirement Fund

Are you worried about what you are going to do for retirement? Have you even begun to save money for when you retire? These are questions most people say no to, because they have yet to look into their retirement.

In today’s world your retirement fund is going to be what will support you the rest of you life after you work, and sadly younger adults will no longer be able to get social security. They will have to either have money saved, or have some type of money in a fund or stock market.

I have been doing a lot of research on loan programs, and forex trading looking for other ways to help build my retirement fund. I have come to find that loaning money, and allowing others to trade it for you, and make your money work for you is one of the best ways to help start building a nest egg.

The hard part for most people is they don’t know when they should start saving money for retirement. I would suggest starting as early as you can so your money has time to mature, and grow so when the time does come for retirement you have plenty of it ready to go.

The longer you wait the harder its only going to be for you come retirement. So look into loan programs, and other ways to build income for retirement. Keep and eye out for something that will make your money work for you so you don’t have to.

Home Floor Plan Designing for your future Home

Designing Your Own Dream Home for the New Home Builder:
What is your dream home? Do you have an idea of what it will look like? Defining a dream home is very difficult, especially if you have a spouse or significant other that has tastes different than your own.

Although you might be able to agree on a floor plan, do you both agree on what the purposes for each of the rooms? My solution to this matter is simple. Brain storm together. Make it fun! After all it’s your dream that you are talking about. Privately each of you collect floor plan ideas from other sources, and prioritize what you like. List the top 10 bedroom floor plans, bathroom floor plans, kitchen floor plans and of course the floor plan layout styles. You can do this by researching these topics: Log Home Floor Plans, Model Home Floor Plans (which, by the way, utilize small spaces very efficiently), Kitchen Floor Plans, Apartment Floor Plans (another very good space effective plan), and various architectural floor plans. Collect your "top ten" sources from each of these plans and then select your top ten out of those. You will have a very comprehensible top ten list to discuss with your spouse or significant other. Keep in mind that you can make any room the size you desire from these plans, but it’s the concept and ideas of the plans that you should be collecting.

You both then get together with your top ten lists and discuss why you really like the plans you choose. Make it fun! Make it a party if you want with friends and family, but you need to remember to be open minded and “listen” to the each other since you both have your own pro’s and con’s with each of the plans. Surprising enough, eventually you will agree on a top ten between you. In fact you probably will have extremely similar plans picked out! I did this with my wife and found that in a few hours we agreed completely on our dream home! This was the hardest part! (This method also works in determining baby names and other life critical significant other issues.)

Factors to Consider:
Probably the hardest factor to consider is financing availability and budget. You need to review your own current budget and evaluate how the new budget will affect your current life style. If you check your credit report and it is not what was anticipated, you might have to adjust your budget or take the necessary steps to clean it up. Since I am not a financial specialist, I would ask you to consult with the credit personnel at your local bank. Once your credit is cleaned up as much as possible, apply for a loan. Apply for the maximum amount you can get. Find out what the monthly payments would be and see if that works in your budget. Make sure your monthly payments do not affect your ability to landscape and buy some interior design items and new furniture. A common mistake most people make is that they put everything in their home but leave out the funds and budget for interior design and landscaping. Always have available financing reserved for future emergencies. Do not put everything in your home and become house poor.

Location of your new dream home is also a factor. Does the neighborhood have houses similar to your style? Is there a variety of home styles? Do research on what type of neighborhood it is. Are there neighborhood, city or county ordinances that might affect your lifestyle? Make a list of all the pro’s and con’s of each of your choices of sites, narrow it down to your top 3 to 5 and seriously think about all the factors that might influence your decision. You don’t always want the perfect size or shaped lot if there are ordinances that will effect how you use it. Be careful.

Make sure you have no surprises. Ask your real estate agent for a list of permits necessary to build your dream home on the lot you chose. If they will not provide thisScience Articles, then go to your city and county and get the list. Make sure your construction contactor provides all of these permits in their contract with you.

Local codes can also surprise a lot of dream home builders. Ask the architect that does the signed blue print on your floor plans to research local codes that may or may not affect your floor plan and dream home design. Homework pays. You can save yourself a lot of money and time if you do your homework up front.

Using the Internet to Find Personal Finance

Many people worry about the best way to keep track of their personal finances, yet at the same time overlook one of the best tools at their disposal for keeping their finances in check. By utilizing the power of the internet it's possible to keep track of financial trends, search for loans, balance your chequebook, and perform a variety of other essential financial tasks without having to leave the comfort and safety of your home computer.

Below are some of the advantages of using the internet for your personal finances, as well as examples of some of the most common online financial tools.

Advantages of the Internet

In addition to the convenience of being able to access financial information over a secure network directly from your home, using the internet to keep track of your personal finances allows you to collect recent information and track financial trends as they're happening. This means that instead of having to keep track of financial papers and running all over town to take care of your financial business, you can do it all from your computer console or home office.

Stock Market Research

Keeping on top of stock trends can be difficult, but by using an internet brokerage for your investment needs you can make the process a lot easier. Simply set up alerts with your stock trading website of choice and you'll receive e-mail alerts as soon as your chosen stocks rise or fall beyond the parameters that you set. You can also access money market account and owned stock value information with just a click, and can make real-time trades just as easily.

Online Banking

Instead of waiting all month for a bank statement, take advantage of online banking services and gain 24/7 access to your savings, chequeing, and other accounts from your home computer. This allows you to check balances, transfer funds from one account to another, and even pay bills online if your bank's online banking portal allows it. You can also usually set up e-mail alerts to let you know when deposits post, when cheques clear, and when automatic payments are made from your accounts.

Researching Loans Online

Researching loans and requesting quotes from different lenders can be a long and grueling process… simplify the process by doing your research online. Most lenders with any sort of online presence have information about the loans and services that they offer on their websites, and contact information available on-site can assist you in finding out additional information. You can also use the internet to follow trends in lending, and may even be able to determine whether to apply for a loan now or if you should wait until after an upcoming interest rate drop at the national level.

Using Online Lenders

In addition to finding basic loan information online, you can actually submit loan applications from the website of certain lenders in your area and other lenders that exist solely online. In many cases, these online lenders are able to offer considerable discounts to their interest rates if you have sufficient collateral… even if you find that your credit is less than perfect.

The interest rates that are offered depend largely upon the individual lender, but it is generally a good idea to include online lenders in your loan search even if you're not planning on utilizing any other online services to assist with your personal finances. These lenders can save you a lot of money in interest rates and special financing, so you should at least give them a try and request additional loan information.

Personal Finance and Home Improvement Projects

Improving your home does not have to be pricey if you research the possibilities. Proper financial planning and understanding personal finance will help. Whether you want to repaint or do more advanced improvements, hiring outside help can be avoided if you know how to read simple instructions and have access to all the tools and needed materials. You can save a fortune if you plan your project carefully by assessing what is needed to complete it. You should consult with home improvement centers that give out free advice and written project guides. Most importantly, you need to shop around for the best deals, research tool rentals, and read as much as you can about the pitfalls and mistakes to avoid.

Unfortunately, many homeowners don’t properly plan ahead, don’t have the budget to cover the costs and remortgage their homes or take out other home improvement loans to help. However, as the interest accrues on these loans, personal circumstances and finances change, and the unplanned projects run out of funding or mistakes are made during the work, resulting in some homeowners find themselves in serious debt, or even facing bankruptcy.

The fact is that home improvement debts are easily avoided by simple planning. No matter how big or detailed the project, the best route is to research, get expert advice, plan and create a working budget, and avoid getting a loan unless you can absolutely guarantee that your project is something you are really capable of doing and that you can afford to pay off. Home improvement is something you can do yourself and it can work out cheaper if you plan it carefully and do it properly.