Car Title Loans: Choosing the Right Financial Service

Car Title Loans

How is this a good investment for both the borrower and the title loan company? It is an excellent investment for the borrower. This is why: at this point of time, let's assume the borrower is in some kind of financial disposition. That means the borrower may have lost their job, can't afford to pay their rent, may need money for their child's school tuition; there could be a number of possibilities why the borrower is in search for instant cash. Depending on the borrower's vehicle value, the borrower can receive up to whatever the maximum the loan company may offer. Some loan companies offer up to $100,000 and others may offer lower loans of up to $5,000. Obviously if the borrower is driving a Mercedes or BMW they will be looking at a larger loan value, but every title loan company is different.

Let's look at the other side of the spectrum. How is this a good investment for the loan company? If we scroll back to the first few sentences in this article, we can see that the title loan company "uses the borrower's vehicle title as collateral during the loan process". What does this mean? This means that the borrower has handed over their vehicle title (document of ownership of the vehicle) to the title loan company. During the loan process, the title loan company collects interest. Again, all companies are different. Some companies use high interest rates, and other companies use low interest rates. Of course nobody would want high interest rates, but the loan companies that may use these high interest rates, probably also give more incentives to the borrowers. What are the incentives? It depends on the company, but it could mean an extended loan repayment process of up to "x" amount of months/years. It could mean the loan company is more lenient on the amount of money finalized in the loan.
Back to why this is a good investment for a title loan company (for all the people who read this and may want to begin their own title companies). If by the end of the loan repayment process, the borrower cannot come up with the money, and the company has been very lenient with multiple loan extensions. The company legally receives the collateral of the borrower's vehicle title. Meaning the company receives ownership of their vehicle. The company can either sell the vehicle or turn it over to collections. So are car title loan companies a scam? Absolutely, NOT. The borrower just has to be careful with their own personal finances. They must know that they have to treat the loan like their monthly rent. A borrower can also pay-off their loan as well. There are no restrictions on paying a loan. He or she could choose to pay it monthly, or pay it off all in a lump-sum. Just like every situation, the sooner the better.

Car Title Loans: The Pros and Cons

It is very helpful to analyze the pros and cons of a car title loan before you decide to take a loan out. Learning about your financial investment before you finalize anything is a great financial tool to success. A borrower must consider their options fully before making a decision.

If you go online to most car title loan companies and read their "about us", "apply-now", "FAQ" pages you will see how bias their information really is. This is called false marketing. Just like the terminology "false advertising" most of these companies never state the entire truth about their company. They may hire outsourced journalists and columnists to write their content. Read the content before you make your final decision. If the content is cheesy and uses imagery in their content, the company is probably bullshit. Writing jargon in articles, is not something to brag about, but come on? Really? This is 100% needed! An example of poor imagery content may be: "Tired of thunderstorms and rainy days, get a car title loan today, and turn your day into a bright-sun shiny day". The content shouldn't be a story, if the borrowers really wanted to read a story, they could take their "nooks" out and read an article from "Reader's Digest". The content should be straight to the point, to get the borrowers' to want to receive a loan from the car title loan company.

The Pros of Car Title Loans

The most clear-stated pro would be the advantage of receiving instant cash. Anyone could walk into their local 7-11 or convenient store and purchase a state lottery ticket. That process is extremely easy; however the probability of receiving a large amount of cash instantly is extremely low. The probability of receiving instant cash at your local auto loan company is extremely high. Unlike traditional banks, and credit bureaus, another advantage of the car title loan industry is NO CREDIT CHECKS. Most of the time, borrowers come to tile loan companies because they're stuck in financial situations. Their credits scores are usually poor at this point, after collections have had to continuously made adjustments because they couldn't pay their bills on time. That is a major "Pro" for a car loan company. No matter what the borrower's credit score may be, the borrower is still qualified to receive a car title loan. Another pro of the car title loan industry (which was actually mentioned previously in the article) is since the borrower is putting their car loan as collateral, it is easy to convince the lender to extend the loan to you.

How does a borrower qualify? Like stated before, there is NO CREDIT CHECKS, therefore the borrower is already pre-qualified for a loan at this point. However, the borrower must meet the following requirements to receive a car title loan. The borrower must be over the age of 18 years old, the borrower must be the owner of their vehicle title, they must have already paid off their vehicle liens-free, and they must have a valid driver's license or state identification card.
How long does the application process take? The simplicity and speediness of the application process is another "pro" or advantage for the car title loan. The average online application just asks basic personal questions pertaining to the borrower's vehicle, and location. The application roughly takes about a minute or less to complete. Most companies get back to the borrower within a few minutes of submitting an application. Once the loan representatives read through the borrower's application information, they quickly give the borrower a call based on the number provided in the app, and go over the details and process of obtaining a loan.
How long does it take to receive the loan? Every company depends and probably has a different loan process, but it usually takes within 24 hours or less to receive the "instant cash". That is another advantage, or "pro" of the loan industry. Traditional banks, and credit bureaus, can take up to a few weeks to finalize the loans. By that time, the borrowers would have already lost their homes, been in serious debt, etc. Taking out a car title loan is the best financial choice. Check.

The Cons of Car Title Loans

Now that we looked at the Pros, let's look at the Cons of car title loans. Honestly, no financial decision is 100% perfect. Nothing is perfect, but some things get close. If this article was based on telling the reader that the car loan industry is the best financial choice, then the article would be full of shit. That's why the title is "key-worded" "Choosing the 'RIGHT' financial service. Not the BEST. The "Right" financial service. Remember, nothing ever is perfect, especially in finances, but some things come close.

The cons of a car title loan are indeed straightforward. The borrower is basically handing the ownership of their personal transportation over to the car loan company as collateral in order to receive a cash loan. As stated before, the borrower can face extremely high interest rates- depending on the company. If you have poor to no credit because of your financial situation, and learn that you cannot pay-off the loan you will be stripped of your vehicle, and instead of being able to alleviate your debt, you will fall into even more debt. At this point, the collections agencies will be completely done with you. The saying "follow the directions, and it'll turn out right" is extremely important and accurate when obtaining a car title loan. A borrower may also be at risk of taking out a loan from a disreputable company that will charge extra fees on top of the accrued interest, or instant hidden feeds that were written in the fine print in the contracts, that are almost impossible to see, unless observed carefully with a magnified glass. Thus, a borrower must be careful before making a finalized decision in any financial situation, especially when their biggest ticket possession is being used as collateral.
Now that this article has closely examined the Pros and Cons of the car loan industry, it is up to the borrower to make the right financial decision. The final decision is the hardest part. The final step is always the hardest part because the borrower now has to make a final decision whether he or she wants to take out a car title loan or choose to use another financial recourse. Honestly, after everything stated in this article, it would seem to be that choosing a car title loan is the right financial service. Again, banks and credit bureaus take too long to process a loan, so why choose them? If the borrower is in need of fast cash, they might want to consider choosing a car title loan.

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Variable Interest Rate Home Loan

What is a Variable Interest Rate Home Loan?

A variable interest rate home loan (sometimes also referred to as a "floating" or "adjustable" rate home loan) is a very popular product in the lending market and a very competitive product offered by most of the lenders/credit providers.

Who is Suited to a Variable Interest Rate Home Loan?

This type of home loan is a perfect fit for:
>> First-time home buyers who just want a home loan product that is simple and not confusing to manage
>> People who just want to stay settled and are not willing to move whether in their work, home, personal life or they are not willing to move to another lender

What Should I Consider When Choosing the Loan?

When choosing it, you should always research and consider the following terms & conditions, being offered by the many lenders/credit providers:
>> Treat any "honeymoon" interest rate offers with caution, and remember to always check whether the discount rate applied to the variable rate is a set amount below whatever the standard variable is
>> Remember that low rate home loans are not always the best choice
>> Try to pick a loan term that suits your finance
>> Decide on what matters most to you (e.g. does it meet your financial goals?)

What are the Features of a Variable Interest Rate Home Loan?

You must know all the below mentioned features of the loan package so you can maximise the benefits:
>> Take advantage of falling "interest rates" when the Reserve bank decides to drop their official rates
>> Make unlimited "extra repayments" each month so you can pay off your home loan faster
>> Take advantage of "redraw facilities" so you can withdraw any extra payments you have made on top of your normal repayment amounts if you need the cash
>> Take advantage of a 100% offset account

What are the Advantages and Disadvantages?

There are many advantages of choosing the loan package such as:
>> Flexibility: It has some flexible features like having options of making additional payments, low introductory interest rates or redrawing facility.

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>> Lower repayment option: As the interest rate varies with that of the market index, if the rate falls, the amount of repayment also becomes lower.
>> Ability to pay off the loan faster: This loan type also has the option of enabling you to pay an extra repayment as advance towards the loan. Thus, every month, if you pay an extra amount in addition to your minimum payment amount, you can repay the loan faster.
>> Helps in Budgeting: As this loan gives you the option of weekly, fortnightly or monthly repayment, you can maintain your budget accordingly.
>> Redraw Facility option: This loan type gives you the option of redrawing the additional amount you have made towards the repayment, in addition to the minimum repayment amount.
While the loan has a lot of upsides, it does have some disadvantages, such as:
>> Variable rate is subject to fluctuations: The interest rate is subject to fluctuations and can either rise or fall at any time during the period of the loan. Changes in the interest rate are at the discretion of a lender and they are meant to be broadly in line with market conditions
>> Repayment may become more: So if the interest rate rises, the amount of monthly repayment also becomes more and it may become more than the amount you can afford.
>> Redraw facilities can be subject to limitations, including minimum withdrawal amounts allowable and may also include redraw fees
>> You cannot arrange a rate lock
>> You cannot pay Interest in Advance in some circumstances
>> This loan type offers fewer features than the general loans

What are the Benefits in Making Extra Repayments?

The benefits available to you in making the extra repayments towards your variable interest rate home loan are best illustrated in the following example. The example assumes that you are willing to contribute an additional amount of $200 towards your weekly repayments:
Loan Amount: $530,000
Normal Loan Term: 30 years
Interest Rate: 5.00%
Repayment Frequency: weekly
Normal Weekly Repayment: $656
Extra Weekly Repayment: $200
Interest saved by making extra repayments: $217,815
Time in years saved, by making the extra repayments: 11 years 10 months
Now that you have thorough information of the variable interest rate home loan, you can discuss about it without your finance broker and find the perfect home mortgage loan.

Singh Finance is the ideal finance brokerage firm of every Australian home buyer. Call on 0424 190 908 for quick approval on 0 savings home loans. You can even enquire online for different loan packages like cheap commercial loans and quick short term second mortgage.

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do you want know 6 Secrets for Successful Home Improvement Loan Applications?

It has been said that a successful mortgage loan approval process is 1 percent perspiration and 99 percent preparation. These loans can be used to maintain or increase the value of your home. This can include general repairs, a new kitchen, a new bathroom, landscape improvements or even a swimming pool. Increasing the value of the property can increase the expected sales value of the home. Here are 6 secrets that will help you avoid problems when trying to obtain mortgage approval.
Start Early
If you plan on buying a home in August or September, give yourself six to seven months to complete the loan process by starting in January.

Do Your Loan Homework

Know early on what type of mortgage loan you are applying for, and what costs you'll incur in the course of the application. Currently, fixed rate mortgages are said to be the best bet because they lock in a loan interest rate and your loan payments won't change over the course of a loan (usually 30 years, although 15-year loans, with higher monthly payments, and lower total debt, are also an option).

Check Your Credit

Few things are more important to banks and lenders than your credit rating. Keep your credit score in check by avoiding big credit care purchases before and while you are engaged in a mortgage application process. Banks and other lenders will find a bad credit score a determinant in awarding home loans. Taking on more debt could change your credit score, resulting in a potentially higher interest rate. Also, don't mess with your credit through closing day, such as making a big purchase.

Pre-Qualify

Getting pre-qualified will put you a step or two ahead of the game for your home loan. This will give you a better idea of how much house you can afford, and a leg-up on getting a loan approval. Your potential lender will ask about your income, assets and credit. Just don't confuse pre-qualified with being pre-approved. The latter means you actually have a loan in hand, while being pre-qualified means you're in the game but haven't scored a loan yet.

Organize Your Documents

Getting your documents in order early is vital. Know how to get your hands on your purchase and sale agreement (copies are okay) and other "high priority" mortgage information such as estimated monthly information, estimated monthly payments, tax documents, pay stubs, and bank and investment statements. Be prepared to list previous residences, going back seven years. Any debt, such as credit card, automobile, student loans. Banks will be looking for outstanding balances, and they won't like it if you have more than 10 percent of your projected loan amount tied up in debt.

Be Honest

Do not overstate income or any investment assets. Likewise, do not underreport debts. Lenders will find out and will be quick to reject loan applications that aren't true.

For more information on securing successful home improvement loans, visit Green Bank today!

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Student Loan Debt-How soon can you get a student loan?

Congratulations on your recent graduation!  It's a great feeling to have accomplished a goal like graduating from college. Adulation and a great party follow the cap and gown ceremony. Then, within six (6) months you start getting notices in the mail. Your loans become due. Maybe you haven't even had a chance to get that dream job, or any job with this present economy. Whether you're working or not, there are a few things you can do immediately that can help you stay in control or even get out of student loans quickly.

First, you must understand and know whether you have federal loans or private loans. How can you tell. A visit to the National Student Loan Data System will give you a list of federal loans only. If you don't see the loan listed there, then it's a private loan.

Second, deal with the federal student loans first by immediately consolidating them after graduation. If you sign up for automatic payments, you may be eligible for a slight interest rate reduction. If you cannot afford the Standard repayment on your federal loans there are other options for repayment. You can explore an extended repayment; graduated repayment; or extended graduated repayment. There are also income sensitive programs like Income Contingent; Income Based; or Pay-As-You-Earn programs. However, you don't automatically qualify for any of the available programs and that is where it gets confusing. Also, your loan servicer doesn't necessarily want you to know about these programs. In fact, their low level representatives may not even be aware of your options. Vist Student Loan Borrower Assistance (dot) org for more information on the available programs. Some federal loans can be forgiven or even discharged without filing bankruptcy. There are public service forgiveness, teacher forgiveness, and full discharges if you become totally and permanently disabled. Also, if you never received your GED or high school graduation and the school falsely certified you for entry, your loans may be forgiven. Unpaid refunds and closed schools qualify some for forgiveness of their loans.

Student loans can be discharged through bankruptcy, but they must meet an undue hardship test first. It's a 3-part test that requires a present undue hardship, a continuing undue hardship, and a look back at what you have done to increase income and reduce expenses and the effort put into repayment of the loans.

Third, address private student loans only after you have your federal loans on an affordeable repayment plan. The reason being is that the federal government can collect on its loans forever. Private student loans generally have a four (4) year statute of limitations (California Law) on their ability to take legal action to collect the loan. Unfortunately, private student loans provide no safe harbour or alternative repayment options like federal loans. However, you can control private student loans through a court approved repayment plan under Chapter 13 of the Bankruptcy Code in order to buy time to improve your financial situation and obtain that dream job.

About Law Offices of Christine A. Wilton

 Consumer protection and bankruptcy lawyers of Law Offices of Christine A. Wilton represent families facing financial difficulties, burdened by debts including taxes, student loans, credit cards, medical bills, law suits, fallen behind on home mortgage payments, or facing auto loans they can no longer afford. The firm has helped clients eliminate student loan debt and helped reduce principal mortgages through the bankruptcy process. The law firm is passionate about helping clients achieve financial freedom from their debts and fights oppressive debt collectors.
 For more information please call 714-533-9210 or visit their website
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Top 10 Success Tips to Refinance Your Mortgage

In nowadays of poor interest loans, quite a few folks are opting to refinance their mortgage loans. Refinancing of house loans is performed for a variety of factors. Some men and women refinance their mortgage loan to get money for renovation, repay credit card debt, raise their cash flow or acquire new assets.
However refinancing is just not for every person. If you merely gave a few many years left on your own mortgage payments or the value of your home have depreciated, refinancing may well not be your very best alternative. And a general rule, if you have a huge amount of many years left on your mortgage, then getting a whole new bank loan using its benefit will likely be ok. When seeking to refinance your mortgage loan, applicants should:
1. Be specific about the mortgage measurement:
Being positive of one's bank loan dimension reduces the time spent along with your mortgage broker.This will depend on several factors such as whenever you strategy to sell the house, length with the debt and repayment amounts.

2. Don't rely on advertised fee:

Banks will at all times advertise the best pace possible for their re-financing. This charge is however reserved from that top 10% who meet all their stipulated specifications. Re-financing rates are established on an particular person basis based on your credit rating, personal loan dimensions and no matter whether the personal loan is closed or floating.

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3. Start along with your current mortgager:

If you have a beneficial file with your present-day mortgager, it's best to seek you re-financing from them. They will be a lot more accommodative as a way to keep your company. They may well also be willing to extend many courtesies these kinds of as decreased processing charges because of your loyalty.

4. Be careful when searching all around:

Purchasing all around is not a negative thought. Even so, ahead of your give out any information such as your social safety variety or make any payments ensure that the organization is legitimate. This might be accomplished by calling the states division of banking to investigate the lenders track report.

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5. Steer clear of No Value refinancing:

No price tag re-financing is often a trick applied by numerous institutions to syphon funds from your pockets. Under no cost refinancing, the fess linked with let us say a 30 year mortgage loan may very well be doubled, as these charges are bundled into the overall mortgage loan. As a outcome, mortgagers will be paying curiosity on these costs.

6. Go for he reissue fee on you title:

If you're staying with your original mortgager, folks can ask to be given a reissue rate for his or her title. This cost is normally 70% much less that the price tag of issue of a fresh title. Needless to say, if you might be utilizing a whole new refinancer, you'd not have this option.

7. Recheck your new Title:

Assure that your new title has all of the right data earlier than it can be sent to the courthouse for documenting. It is within your rights to request this within your mortgager.
8. Avoid escrowing taxes and Insurance:
Unless you foresee monetary challenges or you're an undisciplined person, when re-financing by no means escrow to cover your home insurance coverage or residence taxes. This can attract a fee of 1% of your loan quantity in states that enable it.

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9. Revise closing price tag estimates:

If you lock your rate of interest, the lender ought to furnish you with a god faith estimate of your respective closing cost inside three days. Peruse these numbers carefully and evaluate them with those on your own ultimate settlement statement. This provides a fantastic notion of your closing closing value.
10. Make it possible for some time for Closing:
Giving yourself adequate time to complete your whole economic needs can save you a whole lot of income. A closing time of 30-45 days is commonly ample to ensure all your contractual obligations are met.
If you want to know more information & tips please visit my blog: Bad Credit Mortgage Rate

I have worked in mortgage for a very long time and it is ever amazing to find people who still do not take some things seriously and one of those things is an officer of the company not reading documents when they sign them.

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Nine Questions to Ask Before Committing to a New Commercial Real Estate Loan or Multifamily Loan

loans

Property owners sometimes focus almost exclusively on the interest rate and the period for which it is fixed when choosing a new commercial real estate loan or multifamily loan. However, other factors have a significant impact on the "total cost of capital" and can limit or expand owner options later on. Before signing on the dotted line, be sure you have answered these nine questions.

1. What are your plans for the property and your objectives in refinancing?

Choosing the most advantageous financing solution for your apartment or commercial property involves weighing tradeoffs between the terms and conditions of alternative loan options. Making sound choices begins with a clear understanding or your plans for the property and objectives in refinancing. Is it likely that the property will be sold in the future and if so when? Are you reliant on income generated from the property now or are you looking to maximize income from the property in the future, perhaps after retirement? Is there deferred maintenance that needs to be addressed now or in the near future? Is remodeling or other major upgrades or repairs expected in the next 5 to 10 years? Will you need to access the equity in your property for other investments, for example, to purchase another property?

2. What happens after the fixed period?

Some commercial property or multifamily loans become due and payable at the end of the fixed period and others. These are often called "hybrid" loans and they convert to variable rate loans after the fixed period. A commercial real estate loan or multifamily loan that becomes due after the 5, 7 or 10 year fixed period may force refinancing at an unfavorable time. Financial markets may be such that refinancing options are expensive or unavailable. Or local market conditions may have resulted in increased vacancies or reduced rents, making your property less attractive to lenders. Frequently the lowest interest rate deals are for loans that become due at the end of the fixed period and include more restrictive pre-payment penalties (see question #4). Hybrid loans convert to an adjustable rate loan with the new rate being based on a spread over either LIBOR or the prime rate and adjusting every 6 months.

3. What is the term of the loan and the amortization period?

The term of the loan refers to when the loan becomes due and payable. The amortization period refers to the period of time over which the principal payments are amortized for the purpose of computing the monthly payment. The longer the amortization period the lower the monthly payment will be, all other things being equal. For apartment or multifamily properties, 30 year amortizations are generally available. For commercial properties, 30 year amortizations are more difficult to come by, with many lenders going no longer than 25 years. A loan with a 30 year amortization may have a lower payment than a loan with a 25 year amortization even if it carries a slightly higher interest rate. In most cases the term of the loan is shorter than the amortization period. For example, the loan may be due and payable in ten years, but amortized over 25 years.

4. If loan converts to a variable rate after the fixed period, how is the variable rate determined?

The variable rate is determined based upon a spread or margin over an index rate. The index rate is generally the six-month LIBOR or, less often, the prime rate. The interest rate is computed by adding the spread to the index rate. The spread varies but is most often between 2.5% and 3.5%. The rate adjustment most often occurs every 6 months until the loan becomes due. There is generally a cap on how much the rate can move at an adjustment point. However, some lenders have no cap on the first adjustment. This leaves the owner open to a large payment increase if rates have moved significantly.

5. What are the prepayment penalties?

Almost all fixed rate commercial property loans and apartment loans contain some form of pre-payment penalty, meaning there is an additional cost to you if you pay off the loan early, which may occur if you want to refinance or you are selling the property or if you want to make payments greater than the scheduled monthly payments. Prepayment penalties generally take the form of a set prepayment schedule, a yield maintenance agreement or, defeasance. A set prepayment schedule predetermines the penalty expressed as a percentage of the loan balance at payoff and declines as the loan ages. For example, the prepayment schedule for a 5 year fixed loan might be quoted as "4,3,2,1" meaning the penalty to pay off the loan is 4% of the balance in year 1, 3% in year 2, etc. A yield maintenance agreement requires a penalty computed using a formula designed to compensate the lender for the lost interest revenue for the remaining term of the loan over a risk-free rate and discounted to a present value. The formula can be complex, but the result is almost always a more punitive penalty than a set prepayment schedule and will generally make early pay-off financially unviable. The third type of penalty, defeasance, is used less often. It works like a yield maintenance agreement in that its intent is to keep the lender whole for the lost interest revenue but it accomplishes that by requiring the borrower to substitute other securities that would replace the lost revenue instead of making cash payment. Often the most attractive interest rates offered are associated with loans with either a yield maintenance agreement or defeasance. There is generally a window starting 180 to 90 days before the loan is due when the penalty expires to allow time to arrange refinancing. These loans generally become due at the end of the fixed period.

6. What are all the fees and charges associated with closing the new loan?

Refinancing can be costly and knowing all the costs is essential to evaluating if refinancing is the right choice. The biggest costs are for appraisals, title insurance, escrow fees, environmental review, points, and processing and/or loan fees. Appraisal fees will run $2,000 and up. Phase I Environmental Assessment cost $1,000 and up. Processing and/or loan fees charged by the lender begin about $1,500 and rise from there. Points may or may not be charged by the lender. Some lenders, particularly on apartment or multifamily loans, will cap the expenses at $2,500 to $3,000, excluding title and escrow. It is important understand the total costs in comparison to the monthly savings in debt service resulting from refinancing. How many months will it take to recoup the costs of refinancing?

7. Is the loan assumable and at what cost?

Many, but not all, commercial real estate loans are assumable. There is generally a fee, often 1% of the balance, and the assuming party must be approved by the lender. Assumability is critical for loans with significant pre-payment penalties, like those with yield maintenance or defeasance clauses, if there is some chance you will sell the commercial or apartment property during the life of the loan.
8. Are there impounds and if so what are they?
Some commercial real estate loans and apartment loans will require impounds for property taxes or for insurance. A monthly amount is determined and then collected in addition to each principal and interest payment sufficient to cover the property tax and insurance bills as they come due. Such impounds will affect your cash flow from the property because monies for property taxes and/or insurance are collected in advance of when they are actually due. Impounds increase the effective interest rate on the loan because they amount to an interest free loan the owner is making to the lender.

9. Does the lender allow secondary financing?

Finding secondary or second lien financing has become quite difficult and many lenders do not allow it under the terms of the loan. However, market conditions may change, making this type of lending more available. If you have a relatively low loan to value and there is a chance you might want to access the equity in your property to pay for major repairs or remodeling, to acquire additional properties, or for other purposes, a loan that allows secondary financing can be beneficial.
Securing a letter of interest from a lender can be time consuming. Many owners approach only their existing lender or a well-known commercial bank lender in their area and assume that the offer they get is the best available. This is not always the case. In many cases, smaller or lesser known lenders offer the most aggressive or flexible terms. There is no way of knowing without getting multiple quotes. A good commercial loan broker can be very beneficial in securing for you multiple letters of interest and helping you compare the terms and conditions of each and select the solution that best meets your goals and plans.

Tiller Hill Capital (CA DRE #:01904383) provides commercial real estate loans and multifamily loans throughout California. Learn more at http://www.tillerhillcapital.com or by calling us at 415-830-9540.

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Features of Personal Loans

Personal loans are available on a variety of products. Installment loans and lines of credit are two feasible options for borrowing money. However, there are significant differences between the two types. With this breakdown, you can determine which solution is the best fit for you.

What is an Installment Loan?

An installment loan is the most common type among personal loans. It is a one-time, lump sum of money that you can borrow from your bank or another lender. You are required to pay it back over a set period of time. The standard repayment schedule is comprised of a series of monthly payments. They are accompanied by a fixed

annual percentage rate (APR).

Benefits and Features

Because of the pre-determined provisions outlined, you will know exactly how much to pay your lender each month. It eliminates surprises and simple miscalculations. The fixed terms allow you to plan better and be in control of your finances. This personal loan is ideal for college tuition, home improvements, and refinancing. It is also an optimal finance option for purchasing big-ticket items such as a house, car, boat, or RV.

What is a Line of Credit?

A line of credit provides money, as you need it. A lender determines an approved amount for a line of credit. You can then withdraw from that amount as the need arises. Your payments and APR will vary. They are based on the outstanding balance owed, your payment history, and other aspects of your lender's criteria. Be sure to read the fine print, so you will have full disclosure.

Benefits and Features

This form of flexible borrowing is also known as revolving credit. As you pay down the outstanding balance, your available amount to borrow revolves back to the original amount. You are able to borrow again and again. It is very similar to having a physical credit card. The interest rate that you owe only applies to the amount that you withdraw. The minimum payments due are low

What to Consider

Should you choose a longer-term, higher-value borrowing option or a shorter-term one? Both personal loans are subject to approval based on your annual income, credit score, and debt-to-income ratio. A history of several installment loans can prevent you from receiving future ones. Make a list of the pros and cons. Determine how and if you can promptly repay each based on their respective requirements. Typically, there are no penalties for early repayments of these personal loans. If you need further assistance, your bank or lender can assist you in making a final decision.

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Student Loans and the Effects of Poor Credit Ratings

Applying for student loans is a process that can frustrate. There are several considerations made by financial institutions prior to accepting a student loan application. One of the major requirements is having a credit rating that is between good and excellent. Anything less and the chances start reducing significantly and this does not bode well for a student needing a loan to continue studying. This article will pinpoint the effects of bad credit on a student loan application.

Private Loans

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The chances of receiving acceptance for a student loan from a private institution are reduced with a poor credit rating. Most financial institutions will take a glance at one's credit standing prior to making any decision related to student loan applications. There is a process in place that has to be followed at all times and this is apparent at private institutions.
A suggestion that is made to students is to go through federal resources in a bid to receive acceptance. Most government loan applications are approved for students looking to receive immediate acceptance. The only concern that can arise is for students with a past history of not paying off student loans. This can have a direct impact on both public and private institutions.
Student loans for people with bad credit will always be difficult to acquire and this point is amplified in a private setting. Yet, with a government agency, the chances of getting a loan tend to increase. Not only do the chances increase, better interest rates are offered and there is more flexibility involved in the process. These are advantages that should be pondered over by any student including those with good ratings.

Focus on Improvement

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Bad *best website about loans* credit ratings are a fact of life and it can become difficult to avoid them after they are established. To receive loans with bad credit might seem a tough ask, but it is possible through displaying signs of improvement over a certain period. If the institution is able to pinpoint areas that are showing development and progress towards becoming better, they will be more willing to accept the application.
How does one make improvements to their credit rating? The simple solution is to start paying off outstanding amounts on time. This can do a lot for one's credit rating and prove to financial institutions that you are on the right track and will pay back their loan on time. This is the only concern for financial institutions to deliberate over because it is their money that is on the line. A student that is not less likely to pay back the amount will always be scrutinized.

Collateral

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This is an effect associated with bad credit because students are forced into a tight situation. Collateral can be a solution to one's issues related to completing their student application in a manner that is effective. What is the concept of using collateral? It is the idea of placing something of value as a means to acquire a loan. If the financial institution does not trust one's ability to pay back the loan, they will know they have a valuable item to make money from (i.e. home, car).
Bad credit student loans are all about establishing some form of security for the institution one is applying to for a loan. There are other solutions related to the loan process and many students decide to sell their valuables and make money in that manner. It is a decision that has to be made on a personal level and well before engaging in the loan process.

Needing a Co-signer

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This can be an effect of having a bad credit rating. Student loans for people with bad credit ratings can be difficult to acquire and it becomes pertinent to attach a trustable name to the process. This can come in the form of a parent or guardian that has a good credit rating and are willing to sign along with you for the loan.
The concept behind having a co-signer is straightforward; the bank will place the responsibility on the co-signer, if the student does not pay back the loan on time. The co-signer will be asked to provide their entire financial history in support of being able to pay back the loan. This is a 'safety net' for institutions to know they will not lose their money in the end.
It is important to remember the requirement for full disclosure when it comes to student loan applications. All details have to be revealed otherwise the loan will become void and create trouble down the road for all parties involved. Financial institutions are thorough when it comes to assessment processes and will scour through the details in order to find anything that is amiss. It is important not to get suckered into loan-shark companies that will extract information and your identity.

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Can I Consolidate My Student Loans?

A National Education Crisis

Today there is a new national crisis. The debt that is being racked up by students is astonishing. This debt is growing faster than at any time in United States history. Experts agree that it is expected that each college graduate will leave college with around $25,000 in unsecured loan debt. When you add to this the high unemployment rate among recent college graduates, you end up with a lot of bad student loan debt.
The total student loan debt is now running over $1 trillion. Part of this is the requirement of more people needing a college degree to get a living wage. Part of this is the rise in cost of tuition that has exceeded 1,120% over the last thirty years.
Since taking out student loans is the only way most of us can afford college, what can be done as we see the federal government hiking the interest rate? Luckily, student loans with bad credit can be consolidated today.

Defaulting on Loans

When a student defaults on a student loan, he finds himself in a bad credit spiral. Not only can she have trouble getting the student loans necessary to complete her education, but she may find that future employers will not talk with her because of her bad credit history.

Consolidating Student Loans

The student loan process can be helped through debt consolidation. This will not only help the students improve their credit score but it will allow them to obtain needed loans at lower interest rates.
The student has to surrender all the existing loans to a company that specializes in student loan consolidation. That company pays off the loans and issues a new loan that the student will have to pay off over time on a monthly basis.

Bad Credit

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The term bad credit when applied to students means the student is unable to repay his or her loans. By consolidating these loans, the student will earn a good credit rating and will find the loan repayment process to be much more manageable.

Expensive But Worth It

It is more expensive to consolidate student loans. This is because the credit rating of the student has fallen by missed or late payments. It is a good option, however. It helps the students by removing the crushing weight of bad loans and allows the students to focus on their education.

Federal Loans

The federal government offers several loan programs targeted at students. In most cases these programs are the best options available. The federal programs are not trying to earn a profit off of students. Some of these programs do not even look at the credit history of the student.

Cosigners

It is possible to obtain private loan consolidation. For this to work the student will require a cosigner. A cosigner is someone who steps in to make the loan payment if the student fails to. This person has to have excellent credit. The cosigner also has to have a steady job with enough income available to make the payments.
Unlike cosigning for other types of loans, student consolidation loans often will have an option that releases the cosigner after the student has made a certain number of payments on time. This allows a student to find a cosigner who is only willing to cosign for a year or two but does not want to be on the hook for decades.

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Tips on Consolidating Student Loans

The numerous types of student loans are most commonly organized into two categories, which are federal and private loans. Over $60 billion a year is disbursed through federal loans, military compensations, work-study programs, and grants. Federal loans for students issued through the U.S. Department of Education are usually simple to consolidate.

Private loans are granted through lending institutions, such as signature loans through Citibank or Sallie Mae. These are often unsecured and have higher interest rates than do federal student loans. Additionally, private loans often begin to accrue interest while students are still in school, but federal loans often do not begin to accrue interest until after graduation.

Students can use federal and private loans along with scholarships and other types of financial aid to fund higher education, but when they want to consolidate their debt, they must consolidate federal and private loads separately. Students should consolidate federal loans first and then private. Consolidating loans can lower interest rates and increase repayment terms (the amount of time required to pay it off). Student loan consolidation can also eliminate the need to make multiple payments each month on different loans.

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Almost half of recent college graduates have accumulated student debt. The average amount of student debt is around $10,000. Interest rates that used to be between 6%-8% have recently fallen to between 3%-4%.
What Are Some Options for Student Loan Consolidation?
There are several options for student loan consolidation in reducing debt. Lower interest rates mean that students can consolidate or refinance their loans at a lower cost. However, students should research and compare interest rates before deciding to consolidate their loans.
Taking out excessive amounts of student loans or defaulting on loans reflects poorly on students' credit scores, which may latter impact students' abilities to purchase houses, cars, etc. Taking out more than 8% of their incomes in loans can affect students' abilities to receive loans in the future.
If you are interested in learning how to consolidate student loans, you are not alone! Just remember, there are many ways students can reduce their debt. For example, students can check into debt forgiveness plans offered by their fields, specialties, and careers. Debt forgiveness plans often include services or continued commitments. Reducing monthly payments can also alleviate the burden of student debt by making each payment more manageable. However, students should be aware that adjusting repayment terms can impact their interest rates.

Learn more about surviving graduate school and connect with other grad students at http://www.phdstudent.com.

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Some Student Loans For Parents With Bad Credit To Consider

Parents take a certain amount of pride in seeing a son or daughter head off to begin their college careers. But there is also a degree of concern, especially financial, as the costs of a college education can be extremely high. That is why student loans, for parents with bad credit especially, are a vital component in tertiary education.
But what are the options open to parents that cannot afford to pay for tuition and living expenses? Aiding student financing is a grand idea, but can they qualify for the programs that matter? These are just two of the questions that come to mind. The good news, however, is that there are plenty of financing options out there.
Here, we look at three of them, from the Stafford Loan that is so popular, to the PLUS Loan that keeps the financial pressure off the student, to being a cosigner to ensure approval of the student loan is granted.

Consider a Stafford Loan

One of the most popular forms of financial aid amongst students is the Stafford Loan program, which provides funding to students who are from families unable to fully support their child in college. It is a hugely successful student loan, for parents with bad credit especially, as they may struggle to finance it themselves.
Stafford Loans are available at a lower interest rate than private loans. This means the overall costs are kept very low. Repayment is deferred until 6 months after graduation, ensuring the student has time to try to find a reliable source of income with which to repay the loan.
Many parents aiding student financing know they must allow the students to accept responsibility for the Stafford Loan, but frequently make the repayments themselves. However, there are strict limits relating to the sum of money borrowed, and the eligibility of the applicants. These student loans are only available to those in need of financial help.

Consider a PLUS Loan

When students find themselves ineligible for federal loans and private loans, it is possible to secure a PLUS loan on behalf of your own child. However, there are conditions to securing these student loans for parents, with bad credit a key one.
The PLUS Loan diverts financial responsibility away from the student, so the parent takes on the commitment completely. The funds can be used to cover both tuition fees and living expenses. Interest is charged on the loan at a lower rate than normal, between 7% and 8%, and is repaid over an agreed period of time in equal amounts.
However, aiding student financing in this way is dependent on the applicant having a good credit history. Recent bankruptcy rulings or loan defaults can mean the loan will not be granted. Also, if other forms of financial aid are secured, then the size of the PLUS student loan will be reduced.

Cosigning Student Loans

Finally, acting as a cosigner on a loan application can be a hugely effective way to secure a student loan. For parents with bad credit, there may be a problem, since their role as cosigner is only acceptable if they have good credit scores and a reliable source of income.
Still, if your own signature is not enough, then look to a family friend or relative that might more suitably fit the bill. Remember, a cosigner only promises to make monthly repayments when the borrower is unable to, effectively aiding student financing as a backup rather than by being the main payer.

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Also, the student remains the key borrower, so if the student loan is defaulted upon - even if it is because the cosigner has failed to make the repayment - then it is the student that suffers the consequences. Their credit rating plummets, and their future loan applications become in doubt.

Donna Hammond is the author of this article. For more information about Bad Credit Unsecured Loan and Mortgages for Bad Credit please visit her website at QuickBadCreditLoans.com

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Useful Tips About a Student Loan Application

Since there are not many people who can finance a college education without some sort of financial assistance, at some point most students will have to fill out at least one student loan application. This process can be daunting, but fear of completing a student loan application is no reason to give up on higher education. Unfortunately, sometimes the easiest student loans to apply for are those with the most unfavorable terms.
For this reason, any student who is attempting to procure financial aid should become familiar with the types of loans available and the student loan application procedures that need to be followed in order to qualify for these loans.

FAFSA: The First Step in Financing an Education

The Free Application for Federal Student Aid or FAFSA is the most important scholarship and student loan application that any student must complete. It is also frequently the most complex and tedious application for students and their parents. This is because the FAFSA requires a lot of detailed financial information, including tax returns, from both students and parents. While the application requires time, this form is essential for all students. Filing a FAFSA is not only the sole method of obtaining federal funding for education including Stafford Loans, but this exhaustive form is also a prerequisite for most state and institution based loan programs. Since these types of loan programs tend to offer the most favorable terms for students, filing a FAFSA should be every student's first step in the financial aid process.

Applying for Federal Aid

Even though the FAFSA is free and can be completed online, its exhaustive nature causes too many students to give up and accept private loans with high interest rates and unfavorable repayment terms. A little preparation can help families avoid this undesirable situation, however. Anyone seeking financial aid should be sure to file a tax return as early as possible. As soon as the tax return is done, families should gather the completed return, bank statements and financial paperwork and fill out the FAFSA. Having paperwork on hand will make the process go more quickly, and early filing is crucial in ensuring eligibility for the maximum amount of aid available. It is imperative that families not only file the form before the FAFSA deadline but before the deadlines for individual school and private loan programs. A completed FAFSA is frequently required before students can even submit any other student loan application, and often these deadlines are earlier than the federal deadline.

School Based Financial Aid

Most higher education institutions have financial offices and offer many forms of financial aid and counseling to their students. While a FAFSA is usually required to qualify for school based programs, there are also additional applications to fill out. Since the deadlines for school based aid are often very early, every student should contact the financial aid office of his or her school as soon as a matriculation decision is made and obtain the necessary paperwork. This paperwork will often include a general financial aid application, applications for specific scholarships and a student loan application for any loans offered specifically by the school. These applications may require personal information in addition to the financial information required for the FAFSA.

State Loans

Many states offer specific loan programs including low-interest loans, loan forgiveness incentives and career based loans. As with school based loans, these require the completion of a FAFSA and additional application paperwork, often including an additional student loan application, but they are well worth investigating. Because they are partially funded by the state, these loans are more favorable to students than higher interest private loans. In addition, students planning on going into high demand careers or settling in certain areas may find that they qualify to have all or part of their loans forgiven once they satisfy graduation, career and residency requirements.

PLUS Loans For Parents and Graduate Students

The PLUS loan program allows parents or graduate students to borrow money to pay for a college education. The student loan application process for these loans, unlike the loans described previously, requires a modest credit check to establish the credit worthiness of the individual parent or graduate student. Some schools also require a FAFSA on file before they will certify a student's eligibility for one of these loans. Those who qualify have the advantage of obtaining a loan with a relatively low-interest rate that is guaranteed by the federal government. This type of loan is useful for families when other types of financial aid and non credit based loans are not enough to cover educational expenses

Private Student Loans

Private student loans require a credit check, but the student loan application process for them is usually simple, and no FAFSA is required. This makes sense, since these loans are offered by banks and other financial institutions who are trying to make a profit. Because of this, the ability of families to get favorable terms for thee loans is based on credit scores. The simple application process for these loans has led many students to rely exclusively on private funding and ignore all other options. While private loans are a valid avenue to use in funding an education, they should not be the first option considered. Even with great credit, after all, the terms for these loans are almost never going to be as favorable as those available with government backed loans.

The Bottom Line

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The student loan application cycle can be challenging, and students need to be informed and educated loan consumers. Financially savvy families must gather records, file tax returns and fill out the FAFSA as early as they possibly can. After the FAFSA has been processed, they need to fill out school and state based financial aid paperwork, being careful to respect all deadlines.

Only after these avenues have been exhausted should they look into other loan options.
Yes, the student loan application process can be daunting, but those who are prepared can save themselves a lot of money in the long run.
On the other hand, please also learn about bank student loans, in general government student loans can have a lower interest rate.

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Ways to Finance College: Bank Student Loans

Financing an education is a challenge, but bank loans can help. These are loans made directly by lending institutions, usually to supplement money from other aid sources. The details vary from state to state and lender to lender, but the following aspects should be considered before any student signs on the dotted line.

Choosing a Lender

The Bank
There are a number of factors to consider in choosing the bank. For starters, not all banks grant loans to students of all institutions. Any financial institution that will not make loans for school the borrower wishes to attend is not a prospect. The next factor is stability. Almost as important is the lender's reputation. A check with consumer agencies will reveal any reports of unfair practices such as discrimination or deception about bank student loans. College financial aid offices have valuable information about this. Also consider that may be substantially easier to qualify for loans at one bank than at another.

The Offer

Even if the lender is up to par, one has to consider the particular bank loans on offer. The interest rate is a huge factor. This rate is usually fixed and will be based on the lender's judgment of the student's ability to repay bank loans. The primary factor will be the individual student's credit history. Shopping around is the only way a student can find the best rate.
Rates are not the whole story, though. Students should consider the quality of a lender's customer service. It should be easy to get answers to simple questions about bank loans and to deal with any problems that might arise. Another thing to look at is the terms of deferment and forbearance, ranging from the date the student will have to make the first payment to the bank's flexibility if the student's circumstances change. One should also consider special programs that the lender may offer with their bank student loans. If these are suitable to the student's situation and result in a lower overall cost, that fact should be taken into account when comparing loans.

Getting the Loan

The Student's Qualifications
To get loans, a person has to be enrolled in school, of course, but that is not the only requirement. The school itself has to be acceptable to the lender. No bank will lend a student money for a worthless degree that will not help pay off. Usually the bank will want the school to be accredited by a particular authority, and there may be other requirements. In addition, students with loans are expected to make progress towards completion of an academic program. This normally means taking at least enough classes to be considered a half time student. For borrowers seeking loans on their own there are also age requirements, which vary from state to state.

Cosigners

Traditional students, those who have just finished high school, usually have almost no credit history, and they may fall below the minimum age at which it is legal to take out any loan in their state. Even if such a student is old enough to borrow, the interest rate they are offered for loans is likely to be very high, and some students may have difficulty getting approved at all. To qualify and get a better rate, traditional students may wish to use a cosigner for bank loans. This is a person, usually a parent, with a good credit history who agrees to pay off if the student defaults. This is a substantial commitment, and students should think carefully before asking someone to become a cosigner. The cosigner status does not necessarily last for the life of bank loans. Some institutions allow graduates who have made a certain number of payments to apply to release the cosigner from their obligation.

Paying Back Bank Loans

Responsibility

All loans, federal as well as private, have to be repaid. Bank loans do not go away if the student drops out of school The loan still has to be paid, even if the former student cannot find a job. A former student's income or lack thereof has no effect on the responsibility to pay off loans. The loan will still be there, piling up interest and affecting the borrower's credit history, until the last dollar is paid. For this reason, bank student loans should be for the minimum amount possible.

Deferment

A deferment is an agreement by the lender to let the student put off making payments on bank loans. It is fairly standard to defer the first payment until a given number of months after the student leaves school to allow time for the establishment of an income that will support repayment. In addition, bank loans may be deferred during military service. One can even apply for a deferment due to unemployment or unexpected expenses like medical bills. It is important to realize interest on bank loans does not stop accruing during the period in which no payment is made.

Forbearance

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A forbearance is a continuation of a suspension of payments on bank loans after a deferment ends. While it may be a good thing in certain cases, some lenders have been accused of pushing forbearance just to run up the cost, since interest, of course, continues to accrue. It may be necessary for a former student to negotiate a suspension of payments in some rare cases, but the cost means that this should be done as rarely as possible.
Before taking out loans, a student should consult their families and any financial professionals with whom the family does business, and talk to the financial aid office at the school in question. After getting advice and evaluating all the deals on offer, a student will be well placed to choose the best bank loans for any particular situation.

Find Bank Student Loans that fit your needs. Or learn more about Student Loans at our website.

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Home Loan Checklist Questions and How to Prepare Yourself When Getting a Home Loan

If you are looking to get a home loan, don't get confused with all the "jargons" used within the finance industry. Prepare for your home loan with the checklist of typical questions asked by the lending officers employed by the lenders/credit providers. This checklist is useful when you are looking to:
>> Buy your first home
>> Refinance your existing mortgage
>> Consolidate your debts
>> Upgrade or renovate your home, or
>> Invest in another property

Question - What is the purpose of the credit you are considering?

Your response should be anyone of the following:
>> Purchasing a home to live in
>> Investing in another property
>> Renovating your home
>> Consolidating your debts, or
>> Refinancing your existing mortgage or any other needs

Question - What kind of loan repayment type are you considering?

You should consider your loan repayment options, such as:
Interest-Only repayments - You will only repay the interest on your home loan, and your loan balance will not reduce
Principal and Interest - You will have to repay the interest and principal amount together. It means your loan balance will gradually reduce.

Question - What kind of interest type are you considering?

You need to consider the interest rate type in terms of:
A Fixed Rate home loan - With this type of home loan, your interest rate is set for a fixed period, and your repayments remain the same for the duration of the fixed period, usually between one and five years, or
A Variable Interest Rate home loan - This type of home loan is very popular with first-home buyers who just want a loan product that is simple, easy to manage and offers a number of features and benefits.

Question - Are you concerned with the amount of interest rate percentage being charged?

If you are concerned with the amount of interest rate percentage being charged on your home loan, you can use comparison rates because they are a handy indicator to help you compare loans more easily. An expert finance broker will readily provide you with a number of impartial comparisons to help you when deciding and which a bank aligned lending officer is not willing to provide you.

Question - Are you concerned with interest rate movements (i.e. up or down)?

If you are concerned with the interest rates moving upwards, you should consider a Combination (Split) interest rate loan because it will allow a mixture of security and flexibility. This is how you will pay:
>> A fixed interest rate payment for an agreed portion of your home loan, and
>> A variable interest rate payment on the remaining portion of the home loan.

Question - What kind of features and benefits are you considering with your home loan?

You should make sure you fully understand all the features and benefits available to you, such as:
>> Taking advantage to make unlimited "extra repayments" each month. So, you can pay off your loan faster.
>> Taking advantage of "redraw facilities", so you can withdraw any extra payments you have made on top of your normal repayment amounts, if you need the cash.
>> Taking advantage of "100 percent offset accounts". If you decide to put as much of your spare cash as you can into an offset account, and keep the cash in the offset account for as many days as possible, your home loan repayments will reduce. It is because your savings are bringing down the interest incurred, and ultimately your loan will reduce much faster.

Question - How long do you expect to remain in the credit contract (i.e. your required loan term)?

You need to consider if you expect to sell the security property in a certain time frame, for example:
>> Long-term - over ten years
>> Medium-term - 5 to 10 years, or
>> Short-term - less than five years

Question - What is an Exit Strategy?

An exit strategy is a plan for what will happen with your loan when you retire. The lender/credit provider will need to see that you will be able to afford the repayments without having to sell your property (i.e. selling your house is not seen as being a valid exit strategy).
So, now you have a checklist of questions to help you get organised when getting a home loan or an investment loan. And, you should now be better prepared to make a decision that suits your personal needs and budget.

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Can You Really Save With Online Auto Insurance Quotes?

The promise is simple-a few minutes could save you a bundle on insurance, but is there any truth to the promise? Can getting a quote online really save you money, can it reduce the hassle of shopping for insurance, and if so, what's the catch? I decided it was time to find out.
One of the first companies to sell insurance online was Esurance. Launched in 1999, they offered auto insurance to a somewhat timid Internet audience. Back then people had lots of concerns about purchase transactions and the risk of credit theft online. Surprisingly, Esurance took off. They were acquired just a year later, and according to the website Metrics, reached Internet sales of more than $350 million by 2005.
What helped them overcome the consumer concerns was that they helped customers get past the pain of calling or going to see insurance agents, something some people would put on par with going to see a dentist. Soon traditional insurance companies jumped in the fray, and the insurance business has never been the same since. Today the number of online quotes generated numbers in the tens of millions annually.

THE BENEFITS

What advantage does online quoting give you? I've identified three key benefits to online quoting. The first is convenience. Rather than calling an insurance company or visiting an agent's office, you can get a quote from the convenience of your own home... or office... or with a smartphone, the convenience of being just about anywhere. You can get a quote anytime of day or night. For many, this is truly a great benefit.
The second benefit is the ability of receiving quotes from multiple companies. When you call traditional insurance companies like Allstate and Nationwide, you'll find out what your insurance cost will be from them only. When you call a multiple quote service, such as Progressive, QuoteHero, or The General, they actually quote multiple companies. Progressive quotes "a handful of companies", whereas companies like QuoteHero access more than 25 insurance carriers.
The third benefit is that it is fast. Geico says, "Fifteen minutes could save you fifteen percent." My experience is that 15 minutes is a long time. I tested several companies, and found I received quotes as fast as just a couple of minutes.

THE DRAWBACKS

There are some downsides to online quoting. One that I find little discussion of is the quality of the quote you receive. What I mean is that one thing you give up is having an insurance agent working with you.
This can lead to errors, mostly by you. If you ask for the wrong coverage, you will get a quote for the wrong coverage. Also, you need to be sure the quotes you receive are "apples to apples" and quoting identical coverage. Changes or additions can impact pricing.
This drawback is not as bad as you might think, as most of the online services now offer toll free assistance. If you have questions about coverage, state minimums, or things that can affect your rates, you can reach a live person if you desire by making a phone call.
The second drawback, and huge one in my opinion, is that some online services will actually sell your name and contact information to local insurance agents. This results in a bombardment of phones calls hoping to get you to "sign the dotted line" with them right away.
In doing research for this article, I had the experience that I began to receive phone calls just minutes after I received my quotes. Five different agent and companies contacted me during the next few days. One local agent still calls me and emails me months later!
Upon close inspection, research showed that one site I found had the following in small print: "By clicking "Get Quotes!" I provide my signature, expressly authorizing telemarketing calls from up to eight insurance companies or their agents or partner companies".
The website Consumerist.com features an article supposedly written by a former insurance telemarketer. She tells the website that they paid $8 per hot lead. She also volunteered that their phone efforts were far more effective than email or mail, which is a big reason you get bombarded with calls right away, while the lead is hot. While I can't vouch for the website or the author's authenticity, it sounds in-line with what I experienced.

TIPS FOR SAVING

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First off, not all companies sell you name. One I found, QuoteHero.com, expressly states they don't sell your name. In fact, for some policies you don't even have to provide any personal information! That's a big deal for me, drastically reducing the harassment factor.
Next, if you have it, get a copy of your existing policy, and make sure you know want kind of coverage you need. If you are driving an older car, you might be looking for the very minimum coverage your state requires. On the other hand, if you are older, have a lot of assets or an expensive car, make sure you are covered appropriately.
And finally, make sure to get numerous quotes. In a recent article, U.S. News & World Report recommended to readers to shop their auto insurance annually, and that online was a good way to do that "in minutes". Edmunds.com concurs, stating, "by doing some comparison shopping, you could save hundreds of dollars a year." In research done recently, tests around the country indicated the average person's savings to be just over 30% when factoring the difference between the high and low quotes!
Can you save with online quotes? Yes, I did. But compare multiple carriers, and be careful to read the fine print to make sure the insurance company isn't just going to sell your name to the highest bidder!

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