Financing Options for Auto Repairs

When Moving Your Business Out Of A Building You Own, Check Commercial Bridge Loan Rates

Posted by on May 19, 2016 in Uncategorized | Comments Off on When Moving Your Business Out Of A Building You Own, Check Commercial Bridge Loan Rates

If you run a successful, growing company, your company may eventually outgrow the building it’s in. While you could sell the building, finding a buyer who is willing to pay a fair price for it can be difficult, and leasing it to another business can be lucrative. If you plan on moving your company out of a building it owns and leasing the building, however, you may need to refinance the building with a commercial bridge loan. Here’s why, along with how to factor in the higher costs of such a loan.    Switching to a Commercial Bridge Loan As long as your company occupies the building it’s in, your company may be able to take out a conventional commercial mortgage on the building (provided you and your company meet all financial requirements for such a loan). Once your company stops occupying the building, however, your company may no longer be able to have a conventional commercial mortgage on the building. It’s often hard to find a mortgage if a commercial building isn’t owner-occupied, and your company’s mortgage agreement might be broken if the company leaves the building. Thus, when you move out, you may need to find a new way to finance the remaining balance on your company’s building. You’ll want to look at bridge loans for commercial real estate because these loans usually don’t have the same owner-occupied requirements. Thankfully, you should be able to get a bridge loan for your company’s building even if you’ve sacrificed your credit to grow your company because these types of loans usually have lax credit requirements. Paying a Higher Interest Rate Because bridge loans for commercial real estate don’t require borrowers to occupy the building, and since these loans have more relaxed credit requirements, the lenders that underwrite these loans assume more risk than those that underwrite conventional commercial mortgages. To compensate for the increased risk, bridge loans usually have higher interest rates than standard mortgages. If you plan ahead for a higher interest rate, though, it won’t be a burden on your company. You can build the increased cost into any lease that you offer to tenants, thus passing the cost of the higher interest rate right onto them. If you’re planning on moving your company out of its current building and leasing the building, you should contact a company (such as Riverside Park Capital Real Estate & Business Finance) that underwrites bridge loans for commercial real estate before your company actually vacates the building. Rates may change between now and when you’re ready to show a potential tenant a lease, but knowing roughly how much companies are charging for interest rates will give you an idea of how much you need to charge for rent. Once you know what you need to charge for rent, you can compare that figure to the current rates for commercial real estate in your area and see whether your rental rates will be...

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New To Budgeting? What Banking Tools Can Help?

Posted by on Apr 12, 2016 in Uncategorized | Comments Off on New To Budgeting? What Banking Tools Can Help?

If you’re tired of living seemingly paycheck-to-paycheck while earning a good income, a budget can help you free up cash flow and reduce your expenses. However, starting a budget from scratch can be intimidating, especially if you haven’t made many past efforts to track your expenses. When creating a budget, where should you begin? Read on to learn more about some banking and technological tools that can help you create—and, most importantly, stick to—a workable budget.  Spending analysis Before you can determine into which spending and savings categories your money should go, it’s often necessary to figure out where it has been going. If you use a credit or debit card for most of your purchases, this process is often as simple as reviewing a few months of bank or credit card statements. Many credit card companies and credit unions will also issue a year-end spending summary setting out the categories in which you spent the most (and least) money. If you primarily operate with cash, you’ll want to spend a few weeks tracking each penny spent—either writing down transactions as they occur or entering them into a mobile or smartphone app. After a few weeks, you should have enough spending data to get a good idea of where the bulk of your money is going. Budgeting on last month’s income One problem shared by many first-time budgeters is the cash flow issue. Even if you make more than enough money to cover all your necessities and discretionary spending, the timing of your paychecks and the timing of your bills can often overlap to leave you cash-poor during certain times of the month. A solution to this problem involves budgeting your current month’s spending on your previous month’s income. By ensuring that you spend no more than you earned during the last month, you’ll help eliminate cash flow problems and won’t be cleaning out your refrigerator for leftovers during the last few days before payday. Once a new month begins, you should already have the previous month’s income banked and available to use for any expenses that may come up. Savings sub-categories  Many online banks now allow you to make multiple “sub-accounts” from a single checking or savings accounts. This is ideal when just beginning to budget, as it will allow you to put funds for each budgeted category into a designated account. At a glance, you’ll be able to determine how much money remains in your monthly budget for groceries, utilities, clothing, or other expenses. These accounts can also be ideal for short-term and long-term savings goals. Whether you’re saving up for a vacation or getting a head start on your holiday shopping, you’ll be able to put these funds in a separate account to minimize the temptation to raid them if you go over budget in another category. If you’re interested, check out the online banking in your area for more...

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Why Mortgage Rates Should Not Dictate Your Home Search

Posted by on Feb 29, 2016 in Uncategorized | Comments Off on Why Mortgage Rates Should Not Dictate Your Home Search

When mortgage rates drop, this is typically all that you will hear about in the financial news arena. Mortgage rates being down often means more affordable borrowing and many people who are interested in purchasing homes will hop on the train for a mortgage approval. While lower rates mean that you can save more money on a home loan, you should not study these trends incessantly if you are really interested in home ownership. Here are some reasons why you should not worry about mortgage rates in your area before buying.  You may purchase too quickly Sometimes, by following mortgage loan trends, you may pull the trigger too quickly for a home purchase. For instance, if you have a low down payment when mortgage rates drop for home loans in your area, you may find yourself more restricted when it comes to home purchases. Since others may be purchasing a home due to lower rates, you can find yourself in bidding wars you never expected. Instead of worrying about the rates, worry about your overall financial picture. Save a high down payment and plan out your lifestyle first before buying.  Mortgage brokers can find you good rates If you see a broker to find you a mortgage, you may be able to get negotiated lower mortgage rates in your area without having to hop on buying before you are perfectly ready. Ask a mortgage broker to run your financials and see what they can do for you. The broker may be able to get you a rate as low as the one you were going to use earlier, but provide you with the loan after you are more at ease with home buying.  There is always refinancing Refinancing can be a major benefit to homeowners. As long as you keep your credit and savings healthy, you will be able to refinance on your home when rates drop to a point that you like. If you stretch your budget in order to own a home, when the chance to refinance for an even lower rate comes around, you may not have the money nor the credit rating that will allow you to refinance. Having the choice to refinance your loan will allow you to purchase when your dream home comes on the market, then take on a lower loan interest rate at a later date.  Instead of waiting around for rates to drop or jumping on buying a home as soon as rates decrease, make it your business to get a home on your own terms, rather than on the market’s terms. The one thing that is guaranteed is that the market will rise and fall. Being happy and prepared for your new home means more than a numerical rate that can come around...

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Is Refinancing The Best Option?

Posted by on Jan 14, 2016 in Uncategorized | Comments Off on Is Refinancing The Best Option?

Refinancing a mortgage makes sense in some situations. Whether or not it is the right decision is based on several factors, including your current mortgage’s terms and if you plan to move in the near future. If you are thinking of refinancing, here are some situations in which it makes sense and when it does not. When Should You Refinance? One of the most important factors to consider when assessing whether or not you should refinance is the term of your current mortgage. For instance, if you have a 30-year mortgage and you can refinance for a shorter period, it might be worth it. However, you need to also consider the interest rate. A shorter term combined with a lower interest rate can be beneficial to you. Even though your mortgage will increase to accommodate for the shorter term, the lower interest rate could mean that the increase will be small enough to fit into your budget. You should also consider refinancing your mortgage if you currently have an adjustable-rate mortgage. When you refinance, you can opt for a fixed-rate mortgage, get a better interest rate, and save money. You do not have to worry about fluctuating payments and you’ll know what to expect from month-to-month. If you want to take advantage of equity in your home, refinancing is a good option to do so. You can use the cash received to make financial moves, such as buying an investment property. Before exercising this option though, it is important to carefully assess what you plan to do with the cash received. When Should You Not Refinance? Although refinancing is a good option in some situations, it is not in all. For instance, if you are planning to move to a new home in the next few years, refinancing is not a good move. The savings from refinancing most likely will not be more than the costs associated with the process. You are responsible for paying closing costs when you refinance. If you are unable to afford those costs, it is possible that your lender will allow you to factor it into your new mortgage, but there is a downside to doing so. The costs could make your mortgage higher and take away from the savings you were hoping to gain. If you have bad credit, attempting to refinance might prove challenging. Lenders might shy away from refinancing the mortgage. Even if you find a lender, the interest rates offered might result in a smaller saving than you hoped. Talk with a financial expert to determine whether or not refinancing is best in your particular...

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Considering Applying For A Mortgage? The Most Important Questions To Ask

Posted by on Dec 3, 2015 in Uncategorized | Comments Off on Considering Applying For A Mortgage? The Most Important Questions To Ask

If you are interested in purchasing a home but you worry about getting approved for a mortgage, there are some things to consider. You need to make sure that your financial records are favorable and that you are financially ready to make that type of commitment. You can start talking with different mortgage lenders before you commit to letting someone get your credit report. Every time someone pulls your credit to look at it for a loan it can bring your score down, so you should get a free report from the government to see what your score is, and not let any lender pull your credit until you have decided they are the lender you want to choose. Ask each lender about the following. Do You Have FHA Loans? An FHA loan is for first time home buyers, and this loan is structured to have the lowest credit and down payment requirements, and often it also has a low-interest rate. This is ideal if you are a first-time homebuyer and you can’t afford to pay private mortgage insurance on the loan up front, and you don’t have the best credit score.  What is the Fixed Interest Rate? With your knowledge of your credit score the lender should be able to give you an estimate of what your interest rate will be when they get you preapproved. Make sure that it is a fixed interest rate and not a variable rate. The fixed rate will stay the same throughout your time making payments so you know what you’ll owe. The variable rate will be very low at first, but after a year or 2 years it could increase significantly, and it could become unaffordable. With the fixed rate, you can always refinance later on if you want a lower interest rate. Cost of the Application Fee Many lenders require an application fee to be paid if the lender is going to go through with the loan. The average cost in your area may vary, but compare the rates of different lenders because this will most likely come out of pocket. You should start saving as soon as you’re ready to start looking at houses so that you can put as much down on the loan to make the payments smaller. This will also put more equity in the home which is important if you need to refinance or take out a home equity loan later on. Ask these important questions before you sign any papers. Contact local professionals, such as those from Mortgage Master Service Corporation, for further...

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Tales Of A High Roller: How To Qualify For A Jumbo Mortgage And Expensive Apartment

Posted by on Oct 28, 2015 in Uncategorized | Comments Off on Tales Of A High Roller: How To Qualify For A Jumbo Mortgage And Expensive Apartment

If you have always dreamed of having a condominium overlooking the water or in that high rise in the center of one of the most populated cities on earth, chances are you have lofty ambitions. Along with your lofty ambitions, you also need to have a sum in order to purchase one of these amazingly sought after properties. If you don’t yet have the purchase price saved, chances are that you will need a jumbo loan in order to purchase your dream property. Here is some advice for qualifying for that jumbo mortgage and that condo board. Pay off all other debts Jumbo mortgage amounts are mortgages that are in excess of $417,000 in most places across the country. In order to qualify for a jumbo mortgage, your debt-to-income ratio will need all of the slack that it can get. Lenders are often most interested in offering mortgages to those who have a debt-to-income ratio of lower than 40%. In order to get a high six figure mortgage without having to drastically increase your income suddenly, you should pay off all debts, so that your debt-to-income ratio for monthly payments is as low as it can get on the scale. All credit card debt, student loans, and other debts should be paid off or settled before qualifying. Save a ten-percent down payment While a 20% down payment is the mortgage standard, for jumbo mortgage loans 10% is often the rule. For the lowest jumbo loan amount of $417,000, you will need $41,700 as a down payment amount, for the loan. When it comes to a jumbo loan, remember that your payments are likely to be hefty. In this case, it may be a good idea to put down the minimum amount and save the rest of your money on hand for moving costs. If possible, decrease your living expenses by going exceptionally frugal for a few years to save half of your income. Develop liquid assets In the event that you do get approved for a jumbo loan mortgage, in some cities the co-op housing board or the condominium board will require you to be approved by them before you are allowed to purchase. Along with making sure you will not disturb the peace, the boards will also want to look at your financials. Since they know you are approved for the mortgage, the financial overview will generally look at your debt and liquid assets. In order to jump the last hurdle of being approved by the board, you will need an impressive amount of liquid assets. The closer that you can get to six figures in stocks, bonds, mutual funds, and other liquid assets, the better. If you are having trouble developing more liquid assets, consider asking for stocks and bonds, or even stock advice as your holiday and birthday gifts from family and...

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3 Things You Need To Know To Wisely Use Auto Equity Loans

Posted by on Sep 15, 2015 in Uncategorized | Comments Off on 3 Things You Need To Know To Wisely Use Auto Equity Loans

Auto equity loans can be a great way to help when you are in a bind. Having financial troubles is nothing to be ashamed of, and luckily there are many different options out there to help you get cash fast when you need it most. However, just because these options are there doesn’t mean that you should use them unwisely. Here are a couple things you should do to ensure that you are using an auto equity loan correctly.     1. Don’t Borrow More Than You Need Before you go into get your loan, you should have a number in mind. This should be the bare minimum that you need to get on your feet. When you get to the loan center they may offer you more. Although it would be nice to have more cash, this cash comes with a high price. It is better if you only take the minimum amount that you need so that you don’t have to pay interest on a higher principle. If the principle is higher it will make the interest accrue faster, even if you start paying it off right away. This is why it is better to get the least amount you can afford, even if they offer more. 2. Start Paying It Off Immediately You will usually have a grace period after you get the loan. This grace period can be your best friend and can actually save you a lot of money. During this time there is no interest, so if you can make some payments it will make a bigger dent on your principle. This is why you should make sure that the moment you get the loan you start making payments. Since auto equity loans have such high interest it can be harder to make a good dent on the principle. This is why you should take every chance that you get to pay on the principle. 3. Don’t Take Out Loans To Cover Payments With No Penalties Another mistake that people make is taking out a high interest loan to cover payments that don’t have major penalties. For instance, if you are behind on a utility bill for a month, you shouldn’t take out a high interest loan. The utility company will just add the amount to the following month and maybe a small fee. This is nothing compared to the extra cost you will pay for interest in a high interest loan. These types of loans should only be used on bills that have major penalties.  By understanding auto equity loans you can use it wisely. Contact a local provider, such as DRIVEiT Title Loans, for further...

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Four Instances When A Cash Advance Might Be A Strategic Move

Posted by on Jun 26, 2015 in Uncategorized | Comments Off on Four Instances When A Cash Advance Might Be A Strategic Move

If you are thinking about taking out a cash advance, a lot of initial advice might guide you not to do so. The thing is, cash advances aren’t always a bad option, and sometimes are the best choice depending on your specific situation. Here are four times a cash advance might actually be worth it for your needs. 1. Starting a Business If you are starting your own business, having cash flow up front can be tough. If you don’t have savings or an investor, you may turn to credit cards as your only option to get things going. Another alternative is a merchant cash advance. This type of advance will still have fees, but you might be able to find a lender that has better rates than even your low-interest credit card. 2. A Short-Term Loan If your cash advance truly is a short-term loan, this won’t bite into your budget too badly with fees and interest. As long as you are dedicated to paying this back as quickly as possible, cash advances can work to your advantage. An example would be seasonal work where you may come into guaranteed money in a short period of time that you can use to pay this back. The delay in paying back cash advances is what makes them more costly. 3. If a Sale Outweighs Fees and Interest If you come across the sale of the century, you might not want to pass this up just because you need a cash advance to purchase. Sometimes a sale on a larger item, a rebate, or a two-for-one deal can actually be so cheap that this will outweigh the fees incurred from a cash advance. 4. Emergencies When Cash is the Only Option Sometimes, cash is the only form of payment that will be accepted. If you are in an emergency situation such as a home or auto repair, credit cards aren’t going to get you anywhere if they only accept cash. You can pay with a cash advance that you can then settle quickly with other forms of savings or transfer to a lower interest credit card. You may be reluctant to opt for a cash advance, but this isn’t always the worst option. You have to look at your specific situation and see if the pros outweigh the cons. Don’t write off cash advances completely until you really make sure this option won’t work for your unique needs. Companies like USA Cash Services can help you determine if a cash advance is right for...

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Why You Should Consider Annuities If You Aren’t Investment-Savvy

Posted by on Jun 15, 2015 in Uncategorized | Comments Off on Why You Should Consider Annuities If You Aren’t Investment-Savvy

When you are promised a large amount of money and you are trying to decide whether you want a lump sump or an annuity, it is usually better to receive an annuity. When you take your money as a lump sum, there will be more of a temptation that you will spend all of your money on things that are not necessary. There are several other benefits to consider if you are not an investor. Annuities Bring a Higher Payout While it can vary from situation to situation, an annuity will often give you more money than a lump sum and will pay out for much longer. The annuity payments are greater because the lump sum calls on the payer to spend much more money than would normally be required. You will want to take the amount of money you will receive, subtract the anticipated inflation for each year that you receive the annuity check, and factor this in. In some cases, your annuity will extend to a family member or loved one. If this is the case, you will not have to worry about spending your lump sum irresponsibly and leaving nothing behind for family members. Annuities have a guaranteed payout. You Will Need to Invest Your Lump Sum To make the most of a lump sum, you will need to be experienced with investing. If you do not know how to invest your money properly, you may lose most of it and the benefit of the lump payment along with it. You can talk to an investment adviser, but there is no guarantee that the adviser will correctly predict which investments should be added to your investment portfolio. That being said, investing is not as risky as many believe, if you educate yourself on how to invest properly. The key is to rely on low-risk investments placed into an investment portfolio so you can row your wealth over time. But if there is a financial downturn, there is a risk that virtually any business could go under. You Can Always Get Cash for Your Annuity If you later decide that you no longer want the annuity, you can receive assistance from a company that will allow you to sell your future annuity payments in exchange for a lump sum of money. You may not get the full dollar amount compared to what you would receive through an annuity, but you will have the flexibility of receiving cash immediately in case you need it urgently. For more information, contact a professional like...

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What You Need To Know About Portfolio Loans

Posted by on Jun 9, 2015 in Uncategorized | Comments Off on What You Need To Know About Portfolio Loans

Many self-employed people become discouraged because the mortgage process is so hard to navigate. Some lenders are especially unfriendly to the self-employed because they are unable to easily verify their income. This is why many self-employed people choose to get a portfolio loan. Here are three things you need to know about portfolio loans. 1. The Loan Is Held In House In most cases, the loans are held in house with the respective credit union, bank or lender. This is a major advantage for many people. What many people do not understand is that the majority of loans are sold to a large, national agency. This means that your loan must conform to this agency’s standards. Since self-employed people may not be able to qualify for a conforming loan, they should considering getting a loan held in house. The bank or credit union won’t sell it, so the bank can determine the terms of the loan and what kinds of documentation the bank needs to verify income. 2. A Portfolio Loan Takes Into Account Many Factors If you are applying for a conforming loan, you might only have to show a few things, like income, debt-to income ratio, and a down payment. However, with a portfolio loan, lenders will look at you as a whole to see how good of a risk you are. For example, they will ask you what kind of education you have, your savings account, rental history and much more. This will give the lenders an idea of how trustworthy you are. For many, this helps. Even though their income may seem a little unstable since they are self-employed, they can still handle the loan. For example, they might have rented property for years without any late payments. Or they could have a very large savings account that can help if times get hard. 3. Portfolio Loans Could Have Different Rates Another important thing to understand is that a portfolio loan could have different terms and rates than a conventional loan. For instance, with a conforming loan, you might get a 15 to 30 year fixed rate. However, with a portfolio loan, your lender might do a balloon payment with a lower rate, or they could do an adjustable rate mortgage. Understanding what kind of loan you are getting before you apply will serve to protect you.  These are just some things you need to know about portfolio loans. For more information on home loans, contact a professional lending organization, like MCS Bank, to discuss your...

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