4 Tips to Make You More Aware

Everyone wants to buy their own home and the most convenient way to do this in a “rush, rush world” like today, is by applying for a mortgage loan. The mortgage loan business is a big one. There are hundreds if not thousands of them trying to lure you in, but you have to beware and watch out for crooked mortgage companies. These crooked companies are out there and won’t care if your loose your home, your savings or even if you go bankrupt. They especially like to prey on the first time home buyer. These companies are looking out for themselves not you, so when you start your hunt for a mortgage make sure you don’t fall into their trap, no matter how seductive their deals may sound. Here are a few tips to help you point out a crooked and fraudulent mortgage company.

1. Be aware if the lender doesn’t give you a good faith estimate of what the closing cost will be. Under The Real Estates Settlement Act they must provide you with this information within three days once you have applied for the loan. An honest lender will give this to you without a problem as they have nothing to hide. Some of the really good lenders will even give you a good faith estimate on your pre–qualifying information. Also watch out for any company that won’t give you information on any of the costs up front, such as interest and other fees.

2. Beware if the lender says it is ok for you to lie about any information, especially about your income on a mortgage loan to increase your chances of approval. Any sort of lying on any loan form is classified as fraud and is a criminal act. Besides if a lender does encourage you to do such a thing, use your common sense, if they give you the leeway to do it, then they will probably have no problem committing fraudulent acts upon you.

3. Beware of interest rates that are amazingly low or incredibly high. Low interest rates can be very tempting, especially when they beat everyone else by two or three percent. You may think that this will save you money, but in the long run it will only cost you more because most loans with a low interest rate like these tend to increase significantly throughout the time line of the loan. People with a less than perfect credit rating usually fall needlessly victim to high interest rates that are usually two or three percent higher than everyone else. There are many places online that offer to check interest rates against your credit and can give you an accurate estimate of how much you should be paying.

4. Be aware if you feel pressured into applying for a mortgage loan that you don’t understand, can’t financially afford or if you are told that you are only going to get the loan through that certain company. If you do feel unsure of anything with a loan, ask them to explain it to you in detail or go to someone else who you can trust. You may want to speak with a lawyer and ask them to go through the loan with you. If you are being pressured to go with a certain company for a loan, then don’t do it. If they can offer you a loan then so too will other companies and without all of the pressure.

When seeking a mortgage loan, make sure that the contract does not differ from the original contract. Companies that ask for more signers, credit insurance, or prepayment penalty fees are probably looking for ways to make money off of you and don’t have your best interest in mind. In this case, you should take your business else where.

These are just some of the things you should look out for when mortgage loan hunting so you are not caught in a trap by a corrupt company. If you are ever in doubt, don’t use the company, as there are many more to choose from that will be happy to take your business and will offer you assistance with anything you are unsure of.

For those that may be short on cash before their paycheck comes in, there are several places that offer payday loans. These are sometimes referred to as cash advance loans or fast cash. Most of these places offer fast and easy ways to get cash until your next payday. There are several places you can go, including the internet and specialized businesses, who offer a small amount of money to be used from one to four weeks.

The policies that payday loan companies have seem like an easy way to get rid of bounced checks, late payments or bad credit. Most offer the loan even if you have a bad credit report, no credit at all, or are bankrupt. As long as you are making a certain amount of money monthly, you can qualify for a payday loan.

The problem with payday loans is that if you decide to borrow money up until your next payday, you will end up with a very high interest rate to pay back. Most of the loan companies will say that this is because you are only borrowing the money for a short time. However, the interest rate for one loan usually averages at 300% APR. Because of this, you will end up paying more interest on your loan than you will actually paying back the money that you borrowed to begin with. This starts a viscous cycle of always owing money to the payday loan companies. Many will often have to extend the loan from the money that they borrowed, causing them to go more in debt than they were when they went to the loan company.

When one goes in to a company to get a payday loan, they are required to provide the loan lenders with proof of employment and write a postdated check for the amount that you are borrowing and the lender fee. The fee itself will not be that high, but the interest rates will. If you don’t pay the interest rates, the loan company will have all of your information, which will give them permission to call you or your company if you have any outstanding payments to make.

If you have already borrowed money from a payday company and are caught in this cycle, there are a few ways to get out. Many will call the loan company and tell them that they can not pay the certain amount owed by that time. It is also an option to stop payments to the loan company. This will help for you to get out of debt in other areas that are more important to keep a good credit record.

If you are in need of borrowing money for a short period of time, there are other ways to proceed which will not get you in a bind later on. The first way is to contact a credit union for a small loan. Usually, credit unions offer smaller loans with the same policies as payday loan companies. The difference is that the APR on their loans are around 15%, making it possible to pay off. There is also the option to go to a credit union where you already have an account and borrow from your own account. When you do this, it is an even lower APR and you will earn dividends on your savings when you pay back the loan.

A second way to avoid fast cash lenders is to use a credit card advance. By doing this, you can take money out of your credit card and pay it back at a later date. The APR with doing this will be higher than normal, an average of 20-25%. It is best to do this only if you have a good credit score rating, so that your credit record doesn’t look bad if you ever need loans again. This is especially important if you don’t think you can pay everything back by the next payday.

A third way in which you can avoid payday loans is by using the resources that are already available. Several banks have overdraft protection available. If you write a check without having the money in the account, it will give you an automatic loan which you can then pay back over time. It may also be effective to talk to the creditors or the place where the bill is coming from. Many will have a grace period time that they can offer, and if you let them know that you are short on cash, they are more likely to be flexible with the amount that you owe.

While fast cash and payday lenders may seem like a quick and easy way out so that you have money for a short amount of time, the repercussions can become much more problematic than the borrowing of the money was to begin with. Because of the high interest rate and the permission given to the company to contact you, it is better to find another route to borrow money.

4 Tips to Avoid the Pitfalls of Loaning to your Best Friend

I’m sure that you heard the old adage never mix business with pleasure. Most people prefer to keep their personal and professional lives separate, particularly where money is involved. Poor business decisions or ventures can lead to a rupturing of a friendship and the same holds true in a money-lending situation. Many good friendships have been lost because money has been lent and then misspent or not repaid.

But what about situations when there is no one else to turn to? You’re desperate for money and your best friend offers their assistance. Can you afford to turn him or her down? Or what about the reverse – one of your closet friends comes to you with a financial problem and asks for your assistance because they have no other options? Would you feel right turning them away? How can you avoid falling into the pitfalls of mixing friendship and money as either the lender or the borrower? Here are a few tips on how to approach a loaning situation between friends.

Eliminate All Other Options

Before you accept money from a friend or offer money to a friend, make sure that there aren’t any other options you can pursue. Maybe one bank has turned you down, but have you really tried all of them? Is there another money lending companies that will work for your situation? Have you cut back your expenses to the absolute minimum or are there some non-essential items that you can do without? One of the best things to do is sit down and figure out a monthly budget. Write down the amount of money you have coming in and then subtract only those things that are absolutely essential for your survival. You might find more money that you thought you had just because you took the time to map out your monthly spending. The most important things to keep in mind is that borrowing from friends should be your last option, not your first. If you can get it from someone or somewhere else, then you should.

Treat it Like the Business Arrangement it is

What most people fail to do is treat this kind of loan like the business arrangement it is. You must outline in writing the amount being borrowed, the time frame for repayment and the amount of interest (if any) that will be included in the repayment. If you do not have a solid agreement like this in place, it is far too easy to get complacent about the situation.

Be Wise in Your Spending After Borrowing Money from a Friend

This may seem like an obvious point, but you’d be surprised how much of a problem this can become. Most friends don’t mind lending the money and helping someone out, but it can be very aggravating to believe that money is being misspent. Put yourself in the lender’s position. Just say you lend money to your best friend, Sarah, to help her pay off her credit card debt. If after lending her the money, you see her spending money on non-essential items like cosmetics or shoes instead of increasing her payments back to you, wouldn’t you be a little upset?

If you’ve borrowed money from anyone – be it a bank or a friend – your first priority is to pay that money back. There will still be plenty of time for life’s little pleasures and luxuries once that debt is settled. And if your the lender, don’t let your frustration build up – make your feelings heard and let your friend know in the nicest way possible that you need your money back as soon as they can spare it.

Pay it back!

No matter how long it takes, you need to pay the money back. If it takes longer than you anticipated, then it is important to talk to your friend and explain the circumstances. Most people will understand if there are good reasons for the delay.

If there is a rupture or end to the friendship before all the money is paid back, it is still important that all of the money be returned. There is no way to salvage the friendship or your good name if you do not settle your debts.

If you are looking into purchasing a new home or refinancing a home, there are loans that you can qualify for no matter what the circumstances. Two of these types of loans in which one can qualify for include FHA and VA loans. FHA loans are used for lower income families as well as those that are purchasing their first home. VA loans are for those who have served in the army, reserves, etc. Both of these types of loans for homes have foundations in governmental funding.

FHA stands for the Federal Housing Administration. They allow lower income U.S. citizens to borrow money in order to purchase a home. They are also used for first time buyers who are looking into purchasing a home or one who wants to refinance their existing mortgage. FHAs began as a government loan, but have moved into private mortgage insurance companies in order to help one with loans for their home. FHA is used to help individuals and families mortgage a home which they would not be able to afford otherwise.

There are several different types of FHA loans. The first is the insured FHA loan. This type insures mortgages to those interested in purchasing or refinancing a home. They are mostly focused on low and moderate income families. Their main intent is to lower costs of mortgage loans. Minimum requirements for this type of loan include manufactured homes, single family and multi-family properties and health related facilities. Limited costs and low down payments are some of the advantages of this FHA loan. Another type of loan is the adjustable rate FHA. This allows interest rates to increase or decrease over a given amount of time. When the interest on mortgage rates increases, this type of loan will allow mortgage financing to be more affordable. This rate is adjusted annually, and will increase and decrease over the period of the loan.

Another type of FHA loan is for those with rising incomes. This allows any one who is buying a home to start at a low mortgage rate. Over time, the mortgage payments will become larger in accordance with the income. This loan is especially useful for families who are just starting out or for first time buyers. Another loan that is similar to this is the FHA Mortgage with increased payments. This also allows families with limited income to buy a home with a low mortgage rate. When their income increases, they will be able to put more into the mortgage, which will then pay off the mortgage sooner than the required term.

One of the FHA loans available is for Energy Efficient Mortgages. This type of loan will allow the one requiring the loan to save money on utility bills by adding energy efficient features to a new or existing home. By giving homeowners a loan to do this, they are cutting the cost of the loan as well as helping to achieve national energy-efficiency goals. The cost that will be cut is determined by a home energy rating system or energy consultant.

If you are one that is not buying a home, there are also FHA loans available for condominiums. This loan offers insurance for those who own a condominium unit. If they make this their primary residence, than they can get a loan for the upkeep of the other condominiums. However, the condominiums can’t be converted from old apartment buildings and is required to have at least four units in the area.

VA loans, also known as Veteran Assistance loans, are another type of loan that can assist in buying a home. These types of loans are available to veterans, active service members, reservists and members of the Public Health Service. In the past few years, more than $63 billion has been spent on helping veterans to buy homes. The guaranteed amount that can be given to a person that has served is known as an entitlement. These types of loans usually do not require a down payment and are available from most lenders. They also do not require private mortgage insurance. They will also usually have the lowest monthly payment because it doesn’t have Monthly Mortgage Insurance. Almost any type of home can be purchased. There are also parts of the loan that can be used for refinancing. VA loans also include a funding fee, which is usually about two percent of the loan which will be paid at the closing of the loan.

If you are in need of refinancing or purchasing a home and need more options for a loan for your mortgage, these two types of loans can help you to pay your mortgage and live comfortably.

Consolidating your student loans is one of the smartest and easiest things you can do to reduce your student debt burden, provided you research your options carefully. Why consolidate your student loans? A student consolidation loan allows you to combine your federal student loans into a single loan with one monthly payment, which is usually lower than the payment required under the standard 10-year repayment option. Consolidating can allow you to lock in some of the lowest fixed interest rates in recent history. Consolidating also allows you to make lower monthly payments. In some cases, consolidating your student loan can also qualify you for new or renewed deferments.

Most student consolidation loans have fixed interest rates that are based on the interest rates of the loans being consolidated. Studies have found that the amount you save by consolidating student loans can be very significant—up to 58 percent, according to some figures. What kind of student debt can be consolidated? Most federal aid, such as Federal Stafford loans, Federal Direct Loans, Federal Perkins loans, and many other types of student loans, qualify for consolidation. Many federal loans already have low fixed interest rates.

Before you proceed with consolidation, make certain the rate on your consolidated loan will indeed be lower than your current rate. The whole point of consolidation, after all, is to try to make the process of paying student debt easier, and hopefully, to pay less overall. Although consolidation can simplify loan repayment significantly and it does indeed lower your monthly payment, it also can increase the total cost of your student debt. Student loan consolidation provides lower monthly payments by giving the borrower up to 30 years to repay their loans. Thus, you'll be making more payments and pay more in interest. If you don't necessarily need monthly payment relief, you should compare the cost of repaying your unconsolidated loans against the cost of repaying a consolidation loan.

If you decide to proceed with consolidating your student loans, you’ll find the process to be very flexible. Whether you are a graduating senior, or have been paying off student loans for years, consolidation is always available. To complete your student loan consolidation, you’ll need to gather information about your current loan(s). You’ll need to know the balances and interest rates of all your student loans, the names and addresses of the companies that hold your loans and the names and addresses of two personal references. If you don’t have this information readily available, the National Student Loan Data System (NSLDS) is a wonderful resource you can contact. The NSLDS holds the most complete and accurate information of federal loans.

Most student loan consolidation plans give you two options for paying back. In the first option, you are responsible for paying a standard amount each month. Payments include both principle and balance. This method of repayment results in the lowest cost of interest paid. The other student loan consolidation payment method is known as graduated repayment. In graduated repayment, the repayment process initially begins with low monthly payments that cover the interest only. Later, the monthly payment amount increases, and the principal is included in the amount paid.

Most repayment of student consolidation loans begins within 60 days of the disbursement of the loan. The payback term ranges from 10 to 30 years, depending on the amount of student debt being repaid and the repayment plan that has been chosen.

Before you decide on a student consolidation loan, be sure to ask a few key questions of your lender. Does the lender offer an assortment of plans for every income level and your specific needs? Does the lender provide any kind of interest-rate reduction, such as reductions for making payment online or on time? Does the lender demonstrate flexibility in customizing a loan to meet your specific circumstances? Does the lending company provide adequate customer service, with real-life representatives readily accessible? Do they offer the best interest rate out there? You should be able to answer all of these questions satisfactorily before going with a specific lender.

Although most individuals who seek out a student loan consolidation program have graduated already, you can also get a consolidation loan while you're in school. You must, however, be enrolled at least half time.