Think

How to Make Credit Card Companies Pay You

2007-04-30T20:26:00.000-07:00

Here's a piece I found from Money on why you should pay an annual credit-card fee. It's no a masterpiece (nor an article I agree with in most parts), but there are two pieces of information in it that I found interesting. The first is on how credit card companies make money:

A recent report from the Government Accountability Office estimated that about 70 percent of the credit card industry's revenue comes from interest and penalty rates, with penalty rates accounting for a growing portion.

No surprise here. Almost everyone know that banks love people to carry balances and they've been more aggressive than ever lately with the fees. That said, I had never seen the 70% number -- though it makes sense now that I do.

Here's the second piece of info -- also not a shock when you think about it:

Those who carry balances on which they pay interest and fees are subsidizing cardholders with no revolving balance who may even be in rewards programs, said lawyer Michael Donavan of Philadelphia-based Donavan and Searles.

Heh.

Via http://www.freemoneyfinance.com/

Smart moves - Money: Personal Finance

2007-02-21T11:13:00.000-08:00

The first nine months of 1995 were a stock investor's dream. The Dow Jones Industrial Average set record after record, and the Standard & Poor's 500 recorded fabulous returns. Small stocks were winners, too, with returns on the NASDAQ over-the-counter segment rising as fast as the high-flying technology companies that dominate it. You could have invested using a dart board and still hit a bull's eye. So what's an investor to do for an encore?

First, take a look at your portfolio. If you're like most investors, you'll find a combination of well-known company stocks, highly rated mutual funds that invest in large companies for growth, a bond fund or two, and a few oddball stocks you bought on a hot tip. This doesn't mean your portfolio hasn't given you a great deal of satisfaction, especially in the past year. The problem is, what happens to it when the markets turn around and go the other way, as they did in 1987?

One of the most important objectives in portfolio management is lowering risk through diversification. If all your investments are in the same place, the value of your assets won't be protected in a market decline.

To lower your risk, make 1996 the year in which your portfolio goes where no portfolio has gone before. Instead of just another highly rated, widely recommended mutual fund with remarkable similarities to the giants you already own, seek out the areas of the investment road that are less traveled.

Over There

International and global funds have been the bane of investors for the past several years. In fact, in four of the past six years, this category of funds has underperformed the U.S. stock market. When currency fluctuations, government upheavals, wars and differences in securities regulations are taken into account, are these funds worth the risk? If you seek to increase long-term return and lower your overall portfolio risk, the answer could be yes.

As the U.S. economy moves from fast-paced to slow growth, European and Far Eastern economies could be on the road to recovery, with increases in corporate earnings on the horizon. The fall of the Mexican peso and earthquakes in Japan scared investors, but now shares of many foreign funds are priced at bargain levels compared with shares of funds invested solely in U.S. stock, many of which are at near historic highs.

Allocating your assets to foreign investments increases the level of risk to that money, but it simultaneously lowers the volatility of your portfolio as a whole. Why? Foreign economies and markets don't always move in tandem with those of the United States. If one part of your portfolio droops, the rest could take up the slack.

If this is your maiden voyage abroad, consider a small investment in a diversified fund that invests overseas. Global funds usually have some exposure to U.S. markets, while international funds invest outside the United States only. If you can handle a greater degree of fluctuation with the potential of a higher return, consider an "emerging markets" fund investing in the stock and/or bond markets of countries with emerging economies. If you'd rather spread your risk over time, make a small initial investment, and add to it monthly.

Electric Avenues

Utility stocks aren't just for income anymore. While just about all stocks rose in 1995, utilities were noticeably left behind. Is there light at the end of the tunnel?

Many utility stocks trade on the strength of their dividends. Income-oriented investors often compare the rates paid by money market funds, certificates of deposit and short-term Treasury bills with those paid by utility company shares, but the latter are by no means as safe. If these short-term fixed-income investments are similar in yield, sharp investors often select the safer alternative; thus the lackluster performance of utility stocks in 1994 and 1995.

However, should interest rates fall, as anticipated, in the 1996 election year, utilities could provide a bright spot for investors who seek a good total return on their investment (yield plus capital gain).

Mergers between utility companies can also mean a win-win situation for investors. The hookup of Baltimore Gas & Electric Co. and Potomac Electric Power Co. could give investors a company with improved growth prospects. As regulations tighten and electricity consumers demand more for their money, an increasing number of utilities will feel the urge to merge to remain competitive.

If you have a burning desire to learn more about utilities, start with local companies. Many of them have programs that allow you to invest monthly without commission. If you seek diversification, many mutual funds invest in utilities and also accept monthly investments.

Just as with mutual funds, utility funds may invest for income or growth. To find out the objective of a fund you are considering, read the prospectus before you invest.

Land, Ho!

Scarlett O'Hara might have been right: You can always go back to the land. If diversity is what you seek, you may want to learn more about Real Estate Investment Trusts (REITs).

by Lorayne C. Fiorillo

http://www.findarticles.com/p/articles/mi_m0DTI/is_n2_v24/ai_18578266

Prenup or not Prenup?

2007-02-13T10:18:00.000-08:00

Whether you get engaged on Valentine’s Day or some other time of the year, the least romantic question is whether or not to sign a prenuptial agreement. It’s the contract that fiancés may sign before the wedding day which describes what will happen to them financially in case they divorce.

It may seem hypocritical to plan for a divorce before the day you pledge to share your lives together forever – for richer, for poorer, right? But the ugly truth is that many marriages end in divorce. And divorce is messy, particularly if one or both people have children from a prior marriage, substantial assets, a business, or a potential inheritance.

Rather than spending massive amounts of money on divorce lawyers, invest in a prenuptial agreement. Each of you will need to hire your own lawyer; this is one time when you shouldn’t share.

It’s important to sign a prenuptial agreement long before the wedding date. If you sign it just before walking down the aisle, it could be legally challenged later. You don’t want there to be any suggestion that one person was coerced into giving up their rights.

Ideally, you’ll be able to broach the subject of a prenuptial agreement before the actual proposal. Your conversation may go something like this:

“If you trusted me, you wouldn’t need me to sign one.”

“If you trusted me, you wouldn’t mind signing one.”

If it does, call off the wedding. You have a lot more talking to do first.

Via savingadvice

2007-01-11T06:42:00.000-08:00

Once you've figured out how much of a down payment you can make on your home mortgage, it's time to determine how to document the source of your funds for the down payment and closing costs. Now you might be saying, "Why do they care where I get the money?" Lenders need to verify the source of funds to both assess the underlying risk in you as a borrower as well as to prevent loan fraud. This makes it imperative for you, the applicant, to maintain complete and detailed records of how the money which you plan to use for a down payment makes it into your hands. Money from your own savings, checking & money market accounts looks best to the bank for a variety of reasons, and is amongst the easiest sources of capital to document.

Money in the bank is also very easy to document. The lender has the option of asking you to submit bank statements to them indicating that you have the money for the down payment and closing costs, or performing a formal Verification of Deposit directly with your bank. Most lenders ask for statements, generally 2 to 3 months if you are providing full income documentation or up to 24 months if you are providing alternative documentation of income.

When discussing your down payment, your lender may discuss the topic of seasoning requirements with you. If you have money in a bank account for 3 months and it reflects consistently in consecutive statements, that money is considered "seasoned" 3 months. Your lender may require that your down payment money be comprised of seasoned funds, and that any large influxes of capital into your bank account may have to be extensively and thoroughly explained, documented, and potentially disqualified. So start saving and plan ahead!

There are loan types which do not require any form of documentation in this regard, particularly No Asset Verification mortgages or "no assets" loan programs. Just as it sounds, this type of mortgage does not require any verification of assets, however lenders generally do not allow the applicant to borrow more than 60% to 70% of the property value without some form of asset verification. There is another type of loan program which is increasingly popular over the last few years called Stated Income Stated Assets mortgages, which allows for limited verification of assets, and some of these programs allow up to 75% or 80% of the property's value to be loaned to the borrower.

Buying a home with no down payment, often referred to as a "no money down" mortgage, has become a popular way for first time buyers to enjoy the benefits of homeownership without substantial savings, however it is important to note that borrowers who want a zero down loan will be faced with higher interest rates and monthly payments and are statistically shown to have higher rates of default and foreclosure.

No matter what you decide to put down, if you have and can document assets above and beyond the down payment and closing costs on the home and mortgage you can establish "reserves" with your application. Having ample capital reserves, good credit, and your down payment sitting in your bank account for a couple of months can in combination help you qualify for some of the best programs available, and potentially save you hundreds of thousands of dollars over the life of your mortgage.

by: Tristan Hunt is a seasoned financial professional with a wealth of experience in the mortgage & wealth management industries.
Visit http://www.RefinanceOne.net

Using the Internet to Find Personal Finance

2007-01-11T06:40:00.000-08:00

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

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

Advantages of the Internet

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

Stock Market Research

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

Online Banking

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

Researching Loans Online

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

Using Online Lenders

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

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

You may freely reprint this article provided the following author's biography (including the live URL link) remains intact:

by: John Mussi the founder of Direct Online Loans who help homeowners find the best available loans via the www.directonlineloans.co.uk website.

Controlling Your Finances

2007-01-11T06:37:00.000-08:00

A person's finances are one thing that determines the way they live. It determines your lifestyle such as what type of car you drive or the area in which you live. Controlling your finances is a very important part of a person's life.

Since just about everyone has a checking account it is important to know how to keep that account balanced properly. If you do not keep a close eye on your account then it could end up costing you a lot of extra money. If you write one check that you do not have enough to cover then it could spiral way out of control.

You will be charged a fee for the insufficient funds which may cause another check to be returned which causes more fees to be added on. This is one reason for keeping a close eye on your checking account. It really isn't as hard as it may seem you just need to remember to keep a record of everything you spend no matter how small. Review your statements each month and compare them to your records.

The next big step that most people take is by receiving credit cards. Yes it is nice to be able to purchase items on credit, but you still have to pay for that luxury and with an added interest fee. Therefore, you need to be careful how you use your cards. This is very important when it comes to controlling your finances. Try to limit them to purchases that can be paid off within the thirty day period to avoid high interest rates. If you do owe a large balance then try to pay extra each month, not just the minimum payment. The more you pay the more money actually goes towards the balance saving you on interest. .

There are also a lot of smaller ways that you can help in controlling your finances. For example, be careful and control any shopping sprees you may be thinking about, even if it is for those Christmas presents. Phone bills can sometime be quite a shock so if you are making long distance calls keep a record so you will know how long you talk and how often. The same thing goes for cell phones, so be careful not to go over your minutes as this can add up very quickly.

Don't go in debt for large items such as automobiles if you are not financial able to afford the payments. Be careful when investing in stocks and bonds make sure you understand exactly what you are investing in and the amount of risk involved. Following these tips can help you in controlling your finances.

by: Christian Tylor is a freelance publisher based in Atlanta, Georgia. He publishes articles and reports in various ezines and provides financial resources on http://www.freenetpublishing.com.

Loans For Self Employed ? Creating Finance Opportunities For A Group Long Ignored

2007-01-11T06:35:00.000-08:00

When self employment was suggested to me as a method of generating income, I had never thought I was taking the ire of loan providers. Mention that you are self employed and you can immediately watch the loan providers tightening the noose on their funds. Lending loans to the self employed person is considered a very risky venture. The business of the self employed persons goes into losses and so does the money lent. This is what loan provider think of the self employed people.

But, are self employed people so vulnerable. No! Self employed people comprise of some of the richest people in the UK. Most of the people who have chosen self employment were the ones who voluntarily left their high paying jobs to fulfil their calling. It is true that their income undergoes variations, but this only shows that a regular loan with fixed repayments is not meant for them. They need a loan wherein the loan repayments can be moulded according to their income structure.

Loan for self employed becomes one of the most popular finance options for the self employed people because it moulds repayments according to the income of the self employed. How much is to be paid and when it is to be paid will be decided by the borrower himself. The feature of flexibility comes in three forms- underpayment, overpayment, and payment holiday.

Underpayment is a facility wherein borrowers can pay less than the specified amount on loan for unemployed. Thus, if it has been decided that the repayments will be ₤100 and the borrower's income in that month or quarter is not enough to make the specified repayment, then he can request the repayment in that month to be only ₤50. There is a reduction in the monthly repayment which connotes that there has been underpayment. Before allowing borrower to make underpayment, the lender needs to be assured that borrower has a good paying capacity. The paying capacity is best revealed through overpayment.

Overpayment means paying more than the specified amount. Therefore, if the borrower makes a payment of ₤150 instead of ₤100, it will be considered as overpayment. Overpayment is made when the borrower has made a good profit. While overpayment makes a provision for the leaner months, it also helps to pay off the loan for self employed quickly.

Loans for self employed are also known for payment holidays. Payment holiday is a period when borrower is completely allowed to skip repayments. This is when borrower is facing difficult times and would not be able to make repayments altogether. The payment holiday maybe for a month or a set of months, depending on the period for which the difficult times last.

Another feature of loans for self employed is that they allow the borrowers themselves to certify their income. In the absence of any accounts or not well maintained accounts, self employed borrowers are refused loans by most loan providers. The self employed people are normally seen to not disclose their actual income as this will require them to pay higher tax. However, when they approach loan providers for loans, they do not want the income revealed to be considered. This will qualify them for a lower value of loan. However, the loan providers who know how the self employed people function, create specific finance options for them. They allow the self employed people to themselves certify their income. Self employed loan is also known as self certified loan because of this feature.

Since the payment in loans for self employed differs from the regular loans, shall the method of charging interest not differ? It certainly differs. While interest on a regular loan is calculated on a periodical basis, on loans for self employed the interest is calculated daily. This arises from the fact that the repayable amount on loans for self employed fluctuates very much. If the method of charging interest used in the regular loans is used in the loans for self employed as well then borrowers might have to pay higher rates of interest. Thus, the method of calculating interest daily is utilised in the loans for self employed. The APR on loan for self employed varies from 10.9% APR to 27.60% APR with an average APR of 17.5%.

Accordingly, self employed people need not feel that they do not have sufficient finance opportunities. Proper search can lead them to loan providers who are ready to mould the features of their loans in order to serve the self employed people.

by: Christian Phelps Masters in Accounting and Financial Management from Lancaster University Management School . He has been working with loan for self employed since his academics got over. To find Self employed secured loan,unsecured self employed loan visit http://www.loanforselfemployed.co.uk.

2007-01-11T06:33:00.000-08:00

A home equity loan allows you as a homeowner to get a loan by using the equity in your home as your collateral. The equity here consists of whatever funds you have invested in your property in order to own it or improve it. Since it is a debt against your own property, which you are in actual possession of, a home equity loan is a secured debt. The property can be required to be sold if you are unable to pay the money back that you have borrowed.

Home-equity loans typically have fixed rates and give you five to 15 years to repay. Home-equity lines of credit usually have variable rates and a 10-year period during which you make only interest payments, followed by a 10- or 15-year period during which you must pay off the debt.

Why Should I Consider a Home Equity Loan to Pay for Repairs?

Repairs and maintenance are part of the routine costs of owning a home. Such expenses ideally should be paid out of your current income. Some years you'll spend less, but other years you'll spend more, and it can be handy to have some cash saved up for bigger repairs. If you don't have the cash but need to make the repairs to preserve the value or safety of your home, then a home-equity loan or line of credit can be a good alternative. The interest rates on home-equity borrowing tend to be low, and your interest payments may be tax-deductible.

When you're using home equity for repairs, though, you should try to pay off the loan as quickly as possible. Unlike home improvements, repairs don't add much value to your home, so it doesn't make sense to stretch out the repayment.

Tax benefits of home equity loans

A home equity loan is also beneficial because the home equity loan rate charged is usually tax deductible, as the loan is used for its primary functions. You can check on various home equity interest rates with a home equity loan calculator and decide what the best rate is for you. This is not the case with other forms of consumer credit, like credit cards and auto loans.

Do Your Homework

Contact several lenders--and be very careful about dealing with a lender who just appears at your door, calls you, or sends you mail. Ask friends and family for recommendations of lenders. Talk with banks, savings and loans, credit unions, and other lenders. If you choose to use a mortgage broker, remember they arrange loans but most do not lend directly. Compare their offers with those of other direct lenders.

Be wary of home repair contractors that offer to arrange financing. You should still talk with other lenders to make sure you get the best deal. You may want to have the loan proceeds sent directly to you, not the contractor.

Comparison Shop

Comparing loan plans can help you get a better deal. Whether you begin your shopping by reading ads in your local newspapers, searching on the Internet, or looking in the phone book, ask lenders to explain the best loan plans they have for you. Beware of loan terms and conditions that may mean higher costs for you. Negotiate with more than one lender; don't be afraid to make lenders and brokers compete for your business by letting them know you are shopping for the best deal. Ask each lender to lower the points, fees, or interest rate. And ask each to meet--or beat--the terms of the other lenders.

You may freely reprint this article provided the following author's biography (including the live URL link) remains intact:

by: John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the www.directonlineloans.co.uk website.

Should You Consider Home Refinance, or Not?

2007-01-11T06:31:00.000-08:00

With interest rates at all-time lows, many people are considering whether or not to refinance their home loan. Generally speaking, if you bought your home with a higher interest rate loan, have an excellent credit history and always pay your bills on time, refinancing your home loan might be a sensible option. However, regardless of your initial situation it always pays to do a little research, and the following suggestions will help you to decide if you need to think twice before considering refinancing your home loan

Home Refinance Tip #1 Having a second mortgage

Refinancing a home that has a second mortgage over it will most likely leave you paying back more than you would need to under your original home loan. It is worth remembering that lenders look less favourably at homes with second mortgages, especially if the second home loan was taken out to help repay other bills.

Home Refinance Tip #2 Your debt to income ratio

Refinancing your home loan follows the same process as your initial mortgage application, where a low debt to income ratio is important in gaining finance approval. A high debt to income ratio will limit your chances of approval for refinancing your home loan, and in the unlikely event it is approved, the terms are likely to be so costly that taking the refinance option would not be worthwhile.

Home Refinance Tip #3 Poor or bad credit rating

The single largest reason for denial of refinancing applications is poor or bad credit ratings. If you think your credit rating has declined since your first mortgage through late payments, or the fact that you had a little trouble paying some bills, put some effort into repairing it before you consider applying to refinance your home. Lenders look at your credit rating, so it pays to do your best to protect it

by: Jay MonCliff is the founder of http://www.generalrefinance.com a website specialized on home mortgage refinance

Second Mortgage/Home Equity vs. Refinance

2007-01-11T06:29:00.000-08:00

Why should you take out a second mortgage or a home equity line of credit instead of refinancing?

Well,???You Shouldn't!!

Why Not?

1. Second Mortgages usually have an interest rant that is twice or even three times as high as your first mortgage rate. You can refinance instead and keep a very low rate. In the long run a second mortgage will just cost you money in interest charges.

2. Home equity lines of credit are designed for mortgage account executives (salespeople) to sell you on using it like a credit card attached to your home. They will try to convince you to use it over and over again.

3. A refinance loan is better for the equity in your home. Very few companies will refinance your home at 100% of it's value without forcing you to take out a second mortgage. You don't want to use 100% of your equity because that means you no longer have that equity to fall back on in emergency situations.

4. Second Mortgages and Home Equity lines of credit are designed to provide account executives (salespeople) with another tool to sway you into putting another commission in their pocket.

5. Your equity is a precious thing and should not be used for unnecessary add ons or impulse buys. If you don't need it and there is even a slight chance you can't afford it, then don't get a second mortgage to buy it.

The only reason that I would ever recommend a second mortgage or a home equity line of credit is in an emergency situation. Only when there is no other option and you must take out a loan would I recommend either one of these options.

by: Benjamin Ehinger has an extensive mortgage background and has studied the industry for many years. To learn more about Refinancing and Second Mortgages visit: http://bandcdriver.tripod.com/second-mortgage.htm.

2007-01-11T06:26:00.000-08:00

It's no wonder that the majority of homeowners dream of one day being able to pay off their home loan and live a life free from the shackles of interest rates, home finance and worries about meeting the monthly mortgage payments because the largest expense the majority of us take on in a lifetime is our mortgage and each month our home finance payments take a substantial chunk out of our take home pay.

Just think what you could do with all the extra money you would have spare if you didn't have to meet your mortgage each month! Interested? Well, here are five steps that you could take today to substantially slash your mortgage repayments and the overall cost of your home loan and even speed up your rate of repayment so that the day when you've paid off your home finance and are free to live the life you want comes that much sooner.

Step One ? Demand Better Service!

As a loyal customer of your mortgage lender isn't it about time you were rewarded for your financial commitment, for making your regular payments and for being a good, long term customer?

Well, you can rest assured your mortgage lender will not reward you unless you ask for a better deal on your mortgage!

So get on the phone, call up your lender, ask to speak to someone in customer services or the customer retention department and explain that you're looking around for a better mortgage deal. Ask them for an evaluation of how much you have left to pay so that you can give it to any one of the hundreds of other mortgage lenders out there all willing to give you a better deal.

If you are indeed a valued customer you should receive favourable feedback to your demands and receive details of better offers currently available to you from your current lender.

Remember, if you don't ask you don't get and be adamant about what you want!

Step Two ? Shop Around.

If step one doesn't get you the deal you deserve, shop around. There really are well in excess of a hundred lenders out there all seeking new customers who will offer you incentives to take up their mortgage product.

Use the internet to get an idea of rates being offered and special deals available to you. Do remember that lenders will do everything they can to make their deal seem like the most attractive one available and do everything within their power to attract new customers so you need to be shrewd.

Look for any hidden charges or tie in clauses and make sure you evaluate products offered on a like for like basis taking into account all the features of the mortgage offers available.

Step Three ? Call in the Cavalry.

Well, not the cavalry exactly but expert assistance in the form of a licensed and regulated fee free independent mortgage broker. In the UK these guys are now regulated by the Financial Services Authority and in the US they should come under the scope of The Responsible Lending Act.

As independent brokers they have access to and understanding of every single mortgage product available and they should be best placed to assist you find a better deal than the one you have now where your repayments will be less, your interest rate will be lower and the amount you repay over the entire duration of your loan is reduced.

Make sure your broker is fee free and remunerated by any company you decide to take a mortgage out with. More importantly than this, make sure they are regulated and licensed correctly and if possible ask for professional references or testimonials.

Step Four ? Cut Out All Extras

Mortgage lenders are notorious for selling overpriced add-ons such as life insurance, home insurance, contents insurance, income protection cover?all these insurances have their value of course ? but you can bet your bottom dollar that you can every last one of them for a fraction of the price by going directly to an independent insurance house or even seeking the services of an independent financial adviser to find you the best deal available.

You could literally save yourself thousands each year in insurance premiums!

Step Five ? Throw Some Money at It

So, you've cut your interest rate down to size, reduced your monthly repayments, maybe received a cash lump sum from a new lender and saved yourself thousands on insurance products ? now turn all those savings back into your mortgage and repay early.

Make sure you have it negotiated into your new mortgage contract that you can make early repayment or lump sum annual top ups and get rid of the millstone round your neck, free yourself from your largest financial commitment as soon as possible and save thousands in interest payments and enjoy freedom of life once again!

by: Rhiannon Williamson is a freelance writer She is currently working on a brand new property investment resource http://www.amberlamb.com/.

A 100% Financed Bad Credit Mortgage Loan - Myth Or Reality?

2007-01-11T06:23:00.000-08:00

Apartment dwellers and homeowners with bad or poor credit who are looking for a mortgage with 100% financing may be surprised to discover, that due to today's more lenient lending practices, it is almost as easy to get approved for a new home loan or to refinance your current mortgage with a poor credit rating than it is if you had good a credit rating.

Tip - This type of bad credit mortgage loan normally doesn't translate into lower interest rate loans. You may qualify for a 100% mortgage but the terms of the loan and interest rate won't be a favorable as if you had great credit.

Bad credit (i.e. also known as Subprime) mortgage lenders offer a variety of 100% mortgage packages for borrowers and in some instances even 103% mortgage loans are available which also include your closing costs. You have several options when it comes to this type of financing. Below are few things that should help you get started on the right track.

100% Mortgage Loans - The Good and the Bad
The primary benefit of a home loan that offers 100% financing, especially if you have less than perfect credit, is that you can purchase a home with little or no cash down. Rather than continuing to throw money down the rat hole of monthly rent you can begin to build equity in a home of your own.

On the other hand, the primary disadvantage of 100% financing is that you will pay more for financing through a higher interest rate and in many instances higher closing costs and rather than having a 15 or 30 year fixed loan you will normally get an adjustable rate mortgage than will go up after 2 or 3 years. Another risk for the homeowner is that because you are purchasing a home with no money down you will have zero equity. If the housing market goes into a slump and the value of your home declines, you could end up with a mortgage for more than your home is worth.

Tip - To find out further information about how to purchase a home with bad credit or no credit visit your local real estate company and they might be able to refer you to a bad credit mortgage specialist. Another option is to simply do research on the internet or use your local phone book but shop around because like any business the mortgage business is very competitive and more options you have the better position you will be in to get the best deal possible.

Another advantage to this type of financing is that you are generally not required to pay for private mortgage insurance because private mortgage insurance is included in the higher rate that you automatically receive due to having poor credit.

Tip - For options in finding the best lender for you, check out the links below.

By Shelby Ryan Visit bad credit remortgage or bad credit debt consolidation loan

The Four Golden Rules Of Personal Finance

2007-01-09T10:06:00.000-08:00

Many successful people have mentors to guide them in learning the skills that lead to achievement, and I'll do my best to offer you some critical personal finance perspectives. They say that life is a school where you learn the lesson after the test. The same thing applies to money, but you can't go back in time to fix catastrophic financial mistakes that you have made over time. As long as you are alive, you are a player on the field of the money-game, and you need to know the basic rules before you get tagged by the experienced players.

Rule #1: To earn money from money. The only way to escape becoming a wage slave for the rest of your life is to set aside savings. The profit on your savings can be used to increase your lifestyle spending, reduce the number of years until you retire, or allow you to actually have any retirement at all. How are you doing so far toward saving and getting it to earn money for you?

Every dollar that you spend eliminates its ability to earn money for you in the future. I am not recommending that you stop eating at restaurants and going to movies, I am recommending that you use some common sense, like looking at your four biggest expenses over the last few months and aggressively finding a way to reduce them.

The biggest obstacle for the first rule is personal debt of any kind (other than a mortgage for your home) or a lease of any kind. Every personal debt that you incur reduces your net worth which could have been working for you over your life time. Acquiring personal debt is exactly like putting a large hole in your wallet. In the money-game, a huge transfer of wealth occurs between the ?Haves' and the ?Have-Nots' over the words, "I can afford that monthly payment." Here is a hint: the "Have-Nots" are the ones who make that statement. So please don't ever look at whether you can afford a monthly payment to make a purchase; pay in cash after you've saved for the item. [Everything that you buy with a 0%-interest payment plan must be over-priced. Behind the scenes, your payment contract is sold to a lender with an interest rate, and retailers don't do this without building-in an acceptable profit for themselves. Ask retailers how much the item will cost if you pay in full, and you could get a lower price.]

Rule #2 Always keep your finances under control. The first step in losing financial control and spiraling into debt and money problems is simply not dealing with personal finances. Prepare for catastrophic financial accidents with health, life, disability, and auto insurance. Plan and save before you buy something. Create a balance sheet for yourself at least once a year to see how you are progressing. Pay every bill on time, or contact the creditor to tell them what is going on and make a partial payment. If you are temporarily unable to handle any of this, ask for some help immediately and find someone trustworthy who will do this for you.

The most common source of financial trouble is a trauma in your life. This can be a health problem (large expenses or unable to work), an emotional problem (divorce or loss of loved one), or a financial problem (losing a job, cut in pay, relocation, unexpected expenses). Whichever the source may be, it leads to three emotional problems: the first is denial, the second is being overwhelmed, and the third is hopelessness. Denial causes people to not open their mail and continue spending as usual, and being overwhelmed paralyzes people from getting assistance and dealing with the situation. For example, if you just lost a loved one, balancing your checkbook and paying bills is not high in your priorities. Unfortunately, tiny amounts of debt grow with interest and penalties into seemingly insurmountable mountains of debt; leaving you with loathsome options such as bankruptcy, poor credit, declining lifestyle spending, and added stress that you bring to relationships and work.

Rule #3 Pay attention to the finances of the people with whom you spend the most time. Whether they are relatives, friends, or co-workers, these people have the most impact on your financial life. Do they consistently follow the first two rules of the money game? Do they earn about the same money as you? If the answer to either of those is "no", then I recommend that you start spending a little less time with them; and this is why. If they don't consistently follow the first two rules, it is unlikely that you will either. You unconsciously model the people around you, and the more people you are exposed to that don't follow the first two rules, the more likely that you will unwittingly follow them. No one thinks they are ?trying to keep up with the Joneses', but we all do it to some extent, and this is the mechanism. On the other hand, if they earn a lot more money than you, you may rack up a lot of debt trying to keep up with them (meeting them at their favorite expensive restaurant, joining them for another expensive vacation, buying a new car because yours is the junker among all of your friends, etc.) On the other hand, if most of your friends earn a lot less than you, you will turn into the group's banker. For example, you'll find yourself in the pattern of putting your credit card down to pay for dinner and they'll all say they'll pay you back later, but 50% of them never do; and they don't mind taking advantage of you because, after all, you earn a lot more than they do. Or, you and your friends need to pay a deposit for renting a house and they expect you to write the checks because you have the money available and they do not.

The neighborhood that you live in also creates financial pressure to violate the first two financial goals. Your neighbors are likely to become friends (and I've already gone over this), but they also influence the size of your home, extent of your landscaping, price of furniture, and the size of your TV. So pay very close attention to the finances of your neighbors ? if you don't like how they are measuring up for first two rules, move somewhere more in alignment with your financial goals. If your family and friends, don't measure up financially, find some additional people to spend time with that have financial habits that you'd like to emulate and learn from. I have friends with a wide range of income, but it is much more difficult to follow the first two money rules when I am with the extremes from my own income. You'll just find it easier to reach the next rule when the peer group that you hang out with aligns closer to your economic level.

Rule #4 Accelerate the other three rules:

Add to your savings by increasing your income through advancing your career. It doesn't matter whether you enjoy it; it is a means to an end ? with the end being progress toward the fulfillment of rule #1. Increase the amount that you save by aggressively lowering four of your highest expenses. Start spending time with people that talk about investing money and are systematically building their wealth the fastest. The combination of all four of these rules will hopefully offer a next-step for you to take today to start getting more ?wins' in the money-game.

by: Francis Kier an MBA in finance and shares his two decades of experience with investing and personal finance. More of his articles are available at http://investing.real-solution-center.com.