Financing Options for Auto Repairs

Should You Get A Mortgage With PMI? Three Factors To Consider

Posted by on Feb 3, 2017 in Uncategorized | Comments Off on Should You Get A Mortgage With PMI? Three Factors To Consider

What is private mortgage insurance and why do you need it? If you’re about to purchase a home but cannot pay the full 20% down required by most loans, you’ll be asked to pay an additional fee called private mortgage insurance (PMI). This fee is necessary for most mortgage companies to guarantee a loan with less than 20% down and it will stay with the loan until you have paid off the full 20%. With that in mind, is it a good idea for you to purchase a home with PMI? Here are some factors you should consider first. How Long Would It Take For You To Save a Down Payment? Purchasing with a low down payment and PMI is generally done with one goal: to get you into a home that you own faster rather than forcing you to rent. If you’re going to be renting for a very long time to save a 20% down payment, then it may be worth it to bite the bullet; after all, though PMI may be an additional expense, it’s still not as much of an expense as renting. But if it will only take you a year or two to save a 20% down payment, it may not be worth the extra cost. Can You Qualify for Any Other Programs? There are some programs that don’t involve PMI. Purchasing a foreclosure through a government agency, for instance, often lets you forego PMI entirely. Veteran’s loans also let you forego PMI. If it is possible for you to qualify for other programs, that’s usually best — especially because these other programs also usually have lower requirement standards. How Much Will Your PMI Fee Be? PMI isn’t a set amount. It varies depending on your personal credit rating and the amount of your down payment. If you’re only putting 5% down and your credit score is poor, you could get a rate of up to 1.5%. This is substantial — it essentially increases your effective mortgage rate by that amount. On the other hand, if you’re putting 15% down and your credit score is very good, you could be looking at a PMI of 0.3% or even less. This isn’t that substantial. Purchasing a mortgage that includes PMI is a very common practice, but you should still consider the factors listed. Above all, you should always ensure that you have enough money to make your monthly housing payments comfortably — everything else is usually in the details. For more information, contact local professionals like Assurance...

read more

Common Hard Money Loan Questions Addressed

Posted by on Dec 30, 2016 in Uncategorized | Comments Off on Common Hard Money Loan Questions Addressed

When you need to meet your financial needs, it may be necessary to take out a loan. However, many people assume that banks are the only lenders they can use. Yet, hard money loans can be a viable alternative for those that are finding themselves in the position of needing a loan. What Is A Hard Money Loan? When banks issue loans, and they will often base their decision on the credit history and income of the person applying for the loan. In contrast, a hard money lender will typically be more concerned with the collateral that can be used to secure the loan. Often, these lenders will require real estate or another form of high-value property to secure a loan. Each lender can make their own requirements, which will make it important for you to consult with several lenders to find one that can accept collateral that is the most convenient for you to use. What Are The Benefits Of Using This Type Of Loan? One of the most difficult aspects of taking out a loan from a traditional lender is the need to pass the credit history check. For individuals that have encountered financial problems in the past, it can be difficult for them to meet the credit requirements of the bank. Luckily, hard money lenders often have much more lenient credit history requirements. In exchange for these more lenient rules, the lenders are likely to charge a higher interest rate than a traditional banking institution, but this may be the best option for individuals that have questionable credit histories and need financing. How Are Hard Money Loans Repaid? You can be intimidated by the prospect of having to repay your hard money loan. Often, people will assume that these loans work similarly to payday loans in the sense that they will all be due at once. Yet, these loans are typically far larger than payday loans, and as a result, lenders will break the payments for the loans into a series of small and easy to manage installments. Lenders will allow their clients to choose a set number of payments that will work best for their financial situation. While you may be tempted to choose the small payment option, there may be additional fees that you should consider. While this may require you to do more research before accepting the loan, it can be an invaluable step for helping you to get the best terms on your...

read more

Got Gold to Sell? Two Tips to Help You Get the Best Rate

Posted by on Oct 10, 2016 in Uncategorized | Comments Off on Got Gold to Sell? Two Tips to Help You Get the Best Rate

Selling gold is a great way to bring in some extra money.  You may have an emergency bill that comes up, or there could be some last minute vacation expenses that you need to take care of.  Whatever, the case, it’s fairly easy to find a buyer who will be happy to take the gold off of your hands.  However, when you’re selling gold, you want to get as much for your haul as possible.  Use this information to learn two tips that can help you get the best rate the next time you go to sell gold.  Keep an Eye on the Price of Gold The key to getting the most for your gold is knowing when to sell.  If at all possible, avoid an impulse sell that isn’t accompanied with a good amount of research so you don’t short-change yourself.  Gold prices fluctuate based upon a number of different factors.  When demand goes up, so does the going rate for gold.  Conversely, when some other precious metal is more in fashion, the price that buyers are willing to pay for gold will typically not be as high.  Your job is to pay attention to the prices that are being offered so you can know when is the right time to sell your wares. You can use a website such as this one to keep track of the going rates for gold.  When the price is up, you’ll notice a green bar around the name of the metal.  If prices start to plummet, a red bar will appear instead. Consider Going Outside of Your Neck of the Woods Another tip that can help you net a larger payout when you sell your gold is to be willing to travel outside of your neighborhood.  It’s amazing the difference in price that you may be able to get simply by going to a part of town where gold is in hot demand. Don’t settle for selling to the buyer who is closest to you; do a little comparison shopping.  Call around to different buyers and get price estimates.  If no one seems to be offering you a decent rate, consider going with a virtual buyer, who may be able to offer you a better price. Getting a good return for your gold doesn’t have to be difficult if you just know what to do.  When you’re ready to let your gold go, keep these tips in mind so you can get a satisfactory return on your...

read more

Important Things to Do When Out on Bail

Posted by on Sep 9, 2016 in Uncategorized | Comments Off on Important Things to Do When Out on Bail

When you’ve been arrested, it’s a happy moment when you’re informed that a family member or close friend has contacted a bail-bonds agency on your behalf to secure a bond for your release. Walking out of the jail might be a triumphant time for you, but it’s important for you to know that your legal worries aren’t completely in the rear-view mirror just yet. While you might be eager to restore some sense of normalcy in your life to reduce the stress that you encountered during and after your arrest, it’s vitally important that you make sure to behave in a certain manner. Here is a list of things to do when you’re out on bail. Obtain a Copy of Your Conditions of Release It’s imperative that you understand what you can and cannot legally do when you’re out on bail; you can clearly have these rules defined by making sure that you get a copy of your conditions of release from a legal official. These rules can differ among states and can be based on the nature of your arrest. In some instances, you won’t be allowed to leave the state or the country; for example, a seemingly innocent visit to family in another state could land you in legal trouble. Avoid the People or Situations That Led to Your Arrest While you’re solely responsible for your arrest, there may have been people or situations that led up to that unfortunate moment. It’s important to do your best to sever the ties with the people or situations that have already proven to be a negative influence in your life. For example, if you were hanging out with the wrong crowd at the time or your arrest, it’s best to avoid seeing such people. Similarly, if you were drinking prior to being arrested, and your intoxication was a factor in your breaking the law, make sure that you avoid alcohol. Get a List of Any Important Legal Dates If you fail to show up for a future court date, even by accident, you’ll be in further legal trouble, and the family member or friend who helped with your bond could be held financially responsible. You owe it to yourself and to this individual to make sure that you know when and where your court dates will take place. Think carefully about how you’ll get to court on time, too. For example, if you had your licensed revoked as a result of your arrest, you’ll need to secure transportation from a reliable person. For more information about how bail bonds work, contact a company such as All Night & Day...

read more

Increasing Your Chances Of Obtaining A Home Refinancing Loan With Standard Interest Rates If You Have Bad Credit

Posted by on Aug 18, 2016 in Uncategorized | Comments Off on Increasing Your Chances Of Obtaining A Home Refinancing Loan With Standard Interest Rates If You Have Bad Credit

If you have poor credit and you are in need of funds to pay for overdue bills at the moment, you may have considered refinancing your home in an attempt to reduce your current mortgage payments so you have the necessary funds to make other payments. Getting a home refinance loan at a decent interest rate can be a bit tricky, however, if your credit score is not in good standing. Here are some steps you can take to increase the likelihood in obtaining a loan without high interest rates when you are suffering from a bad credit reputation. Check Your Credit Score History Your credit score is based on your past payments and the amount of current debt you hold. If there are inaccuracies on your credit report, they can make an impact on the interest rate amount a banking service would offer on a refinancing loan. It is very important to check over your credit score online to see if there are mistakes in the reporting history. Equifax, TransUnion and Experian are the three credit bureaus with this information. Simply go to their webpage, create an account, and print out your report to be evaluated. You can then fight any discrepancies on the report in an attempt to boost your score.  Apply For A Secured Credit Card If you are unable to get a standard credit card due to your poor credit history, you can build your credit score by applying for a secured credit card instead. This is a card that requires you to deposit money into a banking institution and then you use the card to withdraw this money when needed. You will still need to make payments on the card to replenish the amount you have in the bank for your use. This is a great way to boost your score quickly, as the payments will be incorporated into your credit history reports. Obtain Cash Or Another Signer If you are able to sell some items in exchange for cash, place it in your banking institution for safekeeping. This money can be divulged to a banking lender. This will show a lender that you have money to make payments on the loan, making it more likely they will give you the lower interest rate you desire. if you do not have cash to place in a bank, you may want to consider having a loved one co-sign a refinancing loan with you. If they have good credit, their standing will be incorporated into the algorithms used to determine interest rate amounts by...

read more

Home Buying Assistance When You’re In The Iowa National Guard

Posted by on Jul 18, 2016 in Uncategorized | Comments Off on Home Buying Assistance When You’re In The Iowa National Guard

If you’re in the National Guard and hoping to buy a home in Iowa, you are in luck because there are some great programs available for homeownership. Here are some veterans home loan and financing options you should be aware of when you’re looking for a home. The VA Loan The Department of Veteran’s Affairs pairs with approved lenders to offer veterans home loans with low interest rates and 100% financing, which means you don’t need a down payment in order to get your house. Active duty military members qualify for this loan within months of getting their first duty station, but for National Guard members, the story is different. You’ll only qualify for a VA loan if you meet one of the following criteria: you’ve been serving in the National Guard for at least six years. Members who retired after six years need an honorable discharge in order to qualify. you’ve been on active duty orders (deployed overseas or within the state) for at least 90 days. If your Guard unit was called up for service, these days count. The only days that do not count are active duty for training, like orders for Annual Training or Basic Officer Leaders Course  (BOLC).  you were on active duty, but did not complete your time because you were discharged for injury or disability. If you qualify for a VA loan, you also automatically qualify for military down payment assistance in Iowa. The Iowa Finance Authority allows for a grant of up to $5000 that you can put toward the down payment, fees, and closing costs of your house. If you are a first-time home buyer, the IFA also provides a $2500 grant if you choose to apply for financing from a certified lender.  Other Options If you haven’t yet made it to your six years or collected your days of active service, don’t despair. There are other lending options that are available to you. Some banks may offer you a military discount, where they give you a conventional loan with a lower interest rate just because you are a service member. If you continue to serve in the National Guard, you can refinance your home later with the VA loan for a lower interest rate and no mortgage insurance (PMI). There are also government loans with low interest rates. Almost every county in Iowa qualifies for a USDA loan, because Iowa is in need of more rural development, even in small towns.  For more information on lending options for military members in Iowa, contact a mortgage broker in your...

read more

3 Things You Need To Do To Improve Your Chances Of Getting A Home Loan If You Are Self-Employed

Posted by on Jun 28, 2016 in Uncategorized | Comments Off on 3 Things You Need To Do To Improve Your Chances Of Getting A Home Loan If You Are Self-Employed

Being self-employed has many benefits. You can choose your own schedule, you are your own boss, and you have a lot of flexibility. But one of the hardest parts about being self-employed is that it can make it hard to qualify for a home loan. Here are some things that you can do to improve your chances of getting approved for a home loan if you are self-employed. 1. Ask For Less Than You Can Afford The mortgage companies generally see people who are self-employed as more of a risk. For this reason, they are less likely to loan you a great deal of money for your home since they know your income can be up and down. This is why asking for less that you can afford could improve your chances of getting improved. For example, most mortgage lenders will allow your debt to income to be around 43%. This means that all of your debt cannot exceed 43% of your income. However, if you are self-employed they might not let your debt to income ratio get that high. Instead, they may prefer that you keep a lower debt to income ratio. This is why going for a more affordable home could be the key to getting approved. 2. Have Good Savings Another important thing is to do what you can to build your savings. If the mortgage company sees that you have a good emergency fund they might see you as a better candidate. For example, if you have 3-month’s worth of expenses saved up, they know that even if you fall on hard times, or business is slow for a while, you will still be able to cover your mortgage payment. 3. Put Down A Larger Down-Payment Lastly, you should consider putting down a large down payment if possible. Ideally you should put down at least 20% for a down payment. This is the magic number that prevents you from having to get mortgage insurance. The reason for this is that if you default on the loan, the bank has your large down payment, plus the sale of the house to cover their investment. The larger down payment you have, the less a risk you are to the mortgage lender. This is why you should take time to save up as much as you can so that you can put a good deal down on the home. By doing these things you can improve your chances of getting a home loan. Contact a business such as The Toby Team for more information....

read more

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...

read more

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...

read more

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...

read more