The Power Of The Line Of Credit, By Dale Pindling

Most people in North America are bogged down by debt. Car loan debt, student loan debt, mortgage debt and most importantly credit card debt.

Credit card debt is the easiest to access and easily the worst form of debt that one can amass. Most credit cards have an interest rate that starts at 10% annually and others even run up to 20% and 30% depending on the special extras associated with that card.

Credit card companies entice you with so many special incentives, but most people fail to realize that they could and should get a line of credit instead.

A line of credit is a loan from the bank that is similar to that of a credit card, but just with much lower interest rates. Some may be 2% or 3% or maybe up to 5% or a little more. However, it is to be noted that they are much lower than credit card interest rates no matter how you look at them. Anybody who would choose a credit card over a line of credit to gain access to some borrowed funds is surely ignorant of the benefits.

I know of a man who managed to amass $75,000 in credit which he used to finance a project that blew up after a year or so.

This man who didn't even make $2,000 from the profit of this project ended up being responsible for a whopping $90,000 after two years because of his ignorance.

If he had known better (he really wouldn't have started this project) could have simply opened up a line of credit and saved him self a whopping $16,000!

Granted it is easier to get access to the plastic than a line of credit, however if your credit rating and monthly income is enough to get you $75,000 you can be sure that the bank will lend you at least $50, 000 in the form of a line of credit.

So, if you are looking for some borrowed money to open your restaurant or do some renovations or any other project, don't be like the man in the before mentioned story. Apply for a line of credit before swiping that card and save thousands of dollars of interest in the process. It may not be easier to obtain but it is easier to manage and also easier to pay back, so make the right choice.
 

Go to http://www.lmnworld.com
 

Article Source: http://EzineArticles.com/expert/Dale_Pindling/31543

Article Source: http://EzineArticles.com/9248255

Is 0% Financing Too Good to Be True? By Patrick Redo

Because many auto dealers are offering 0% financing, you may be confused and wondering if this rate is too good to be true? Unfortunately, in many cases the answer is yes.

Before we get into whether 0% interest is too good to be true, it's important to understand what 0% financing actually is. When you get a car loan, as everyone knows you are borrowing money to pay for a car. The bank or credit union doesn't give you that money for free. Instead, you have to pay interest, or a fee that you give the financial institution for lending you the money.

The phrase, "if it's too good to be true, it probably is too good to be true," is definitely something you should keep in mind as you search for a car loan. Many times the 0% is a "teaser rate" meant to get you in the door and may not apply to you or may not be the best deal for you.

The problem with 0% financing is that not every potential car buyer qualifies for this super-low financing. The too-good-to-be-true rate applies to people with very high credit scores, excellent credit records and little or no debt. That means only about 5% of the population qualifies for the 0% rate. And, if you do qualify you will most likely have larger payments over a shorter period of time, which may be difficult to fit into your monthly budget. Unless you fall into this category, you may get stuck paying a much higher rate.

You may be surprised to learn that even if you do qualify for 0% financing, it could cost you more in the long run. If the dealer offers you the choice of 0% or a cash rebate, taking the rebate and financing through your local credit union could save you money - even if their rate is higher.

Let's do the math:

Credit Union vs. Dealer Auto Loan
• Vehicle purchase price: $20,000
• Cash rebate instead of 0% financing: $ 3,000
• Amount financed: $17,000
• Interest rate: 2.49% APR or 0% with dealer
• Term of loan: 48 months
• Monthly payment: $372.46 - $416.67 with 0% financing
Total Saving/Life of Loan: $2,122.08

There are numerous reasons to get a credit union car loan. Below are just a few:

Credit Unions have the funds and healthy relationships with car dealers to make the loans.

You have a better chance of having your loan approved if you have credit problems.

Credit unions are non-profit organizations and work to provide members with high-quality customer service.

Members tend to have a more personable experience at a credit union so you can openly discuss your concerns about your loan, discuss flexible repayment options and review your financial situation.

Credit Unions are more likely than traditional banks to work with you if you experience difficulty making the payments because they are more in tune with their local communities.

You could get lower monthly payments with your credit union, because low auto loan rates are available for loans with longer terms as well as shorter ones.

You may save money on the total cost of the loan, because credit unions don't charge application fees or prepayment penalties.

So, the next time you see a 0% rate, do your homework and get pre-approved at your local credit union before you even shop for the car of your dreams. An informed buyer is definitely the best buyer!!!
 

Auto dealerships dangle low interest rates and 0% financing to lure you in. But once you bite you might be surprised to know you're not saving money. allU.S. Credit Union can get you pre-approved so you can choose your car and drive today! To get pre-approved for your allU.S.. auto loan, call 831-789-8020, visit our website http://www.alluscu.com or stop by the branch at 20 W. Market St. in Salinas.
 

Article Source: http://EzineArticles.com/?expert=Patrick_Redo


Article Source: http://EzineArticles.com/8883533

Fixed Rate vs. Variable Rate Home Loans - How to choose the Perfect Home Loan? By Frank Zelasko

To Fix or Not to Fix?

If you are about to buy a house or you are about to refinance your home or investment loan you may be asking yourself, should I fix my loan or not? Everyone wants to choose the perfect home loan and so, no one wants to commit the mistake of choosing the wrong loan rate type. The question is more important especially now with interest rates being at an all time low.

To help you decide you need to know - what is the difference between a fixed rate and a variable rate home loan?

What are Fixed Rate Home Loans?

With this type of loan, you will have the assurance of knowing:
>> What your repayments will be over a set period of time
>> What your interest rate charges are over the life of the loan
>> That you have the ability to plan your finances and stick to your budget, even in times of economic uncertainty
>> That when interest rates rise, your repayments will not increase
>> That you do not have to contend with varying loan payment amounts that will fluctuate with interest rate movements
>> That you have the flexibility of locking in your fixed rate

What are Variable Rate Home Loans?

It is a very popular product in the lending market and a very competitive product amongst the lenders/credit providers. It allows you to:
>> Take advantage of falling interest rates when the Reserve bank decides to drop their official rates
>> Take advantage of inclusions such as, a 100% offset account, free additional repayments and redraw facilities
>> Take advantage of the equity you have built-in your home by taking a line of credit option
>> Make unlimited extra repayment each month so you can pay off your loan faster

Do You Want a Compromise between Fixed and Variable?

If you are uncertain between choosing between a fixed or variable rate home loan, you may consider a split loan. It is also known as a split rate home loan.

A Split Rate Home Loan allows a mixture of security and flexibility, such as:
>> A portion of the repayments can be at a fixed rate, and
>> Another portion of the repayments can be at a variable rate

What will I lose by Fixing my Home Loan?

Here are the disadvantages of fixing your home loan:

>> Interest rate drops will annoy you - If interest rates go down below your fixed rate, you will be repaying more than the variable rate and you will not benefit from the rate drop
>> Can I make extra repayments? - Extra loan repayments are often not allowed if you have chosen a fixed rate, or may only be allowed with a fee. Variable rate home loans usually allow you to make extra repayments at no cost
>> Break fees - Fixed rate home loans may also have a break fee if you change or pay off your loan within a set period (e.g. if you sell your home)
>> No Repayment Holiday is allowed when you have a short-term financial difficulty
>> No offset account and no introductory rate are available to you
>> Cannot be used for business purposes, or building/construction loans or bridging or "off the plan" loans

Are there any Disadvantages of a Variable Rate Home Loan?

A variable rate home loan is one of the most popular loans available. However, you still need to make your own comparisons of the features, benefits and flexibility. Even though a variable rate house loan is very popular, there are some disadvantages, such as:

>> The interest rate and repayments can rise or fall at any time
>> Changes in the interest rate are at the discretion of a lender and they are meant to be broadly in line with market condition
>> You cannot arrange a rate lock
>> You cannot pay Interest in Advance in some circumstances

How to choose the Home Loan that's perfect for you?

It is very crucial to spend time in choosing fixed rate or variable rate. If you choose the wrong option, you will end up with an uncomfortable mortgage for a very long time. So, spend some time researching recent rate movements. If you think that the loan rate may increase in future, you can opt for fixed rate house loans. And, if you believe that there are chances of further reduction in interest rates, you can select the variable rate house loan.

It is also important to speak to a home finance expert who has thorough knowledge of both the fixed and variable rates available in the market. He/she will be able to guide you in a better way and will help you in structuring your loan according to your needs.

All the best for your new home loan! Hope you make the best choice.

Singh Finance has a team of the best finance brokers of the industry who will help you in choosing the best home loan for your dream house. The firm is experienced in dealing with a wide range of financial issues. It will even help you with bad credit home mortgage as well as low rate home loan refinance. Call on 0424 190 908 or enquire online now.

Article Source: http://EzineArticles.com/?expert=Frank_Zelasko

How Do I Obtain A VA Home Loan? By Keith W. Springer

A VA home loan (VAHL) is a mortgage loan that is guaranteed by the US Department of Veteran Affairs, also known as the VA. The VAHL program began in 1944 through the original Servicemen's Readjustment Act, or the GI Bill of Rights. The GI Bill provided veterans with a federally-guaranteed home loan with no down payment, making the dream of homeownership a reality for millions of veterans and their dependents.

VAHL are made by private lenders, such as banks, credit unions, and mortgage companies. Contrary to popular belief, there's little red tape involved with getting a VA loan. In fact, the application process for a VAHL isn't much different from the application process for any other kind of mortgage. If you're a veteran who's interested in buying a home, here are the steps you need to take in order to obtain a VAHL.

Apply for a Certificate of Eligibility

Get your Certificate of Eligibility (COE) by completing VA Form 26-1880 (Request for a Certificate of Eligibility for VAHL Benefits) and submitting it to the VA Eligibility Center along with proof of military service. If you've already begun the loan application process, you could even ask your lender to assist you in obtaining the COE. Check the status of your application for a COE in 10 days.

Find a Lender

Locate lenders that participate in the VAHL program. Shop around for a good lender because interest rates, closing costs, and discount points vary widely from one lender to the next. Get pre-approved for a loan, so you can determine how big of a loan you'll get. The lender will review your credit history and income information to determine whether you qualify for a home loan. Consider looking for VA Lender Appraisal Processing Program (LAPP) lenders because they can process VA loans faster than other lenders.

Find a Home You Want to Buy

Shop around for homes and decide on a home that you want to buy. You could use the services of a state-licensed real estate agent to take tours of different homes and find a home that suits your requirements. Make sure that your purchase and sales agreement includes a "VA Option Clause," which is also known as a financing contingency. This clause makes the contract subject to approval for a VA guaranteed loan.

Order an Appraisal

Typically, your lender will order an appraisal from the VA. Your lender will send a VA form to a state-licensed real estate appraiser, who will visit the home to determine the market value of the property. Bear in mind that the VA's appraisal is not a home inspection or guaranty of value - the VA doesn't guarantee the condition of the house. Furthermore, lenders cannot request specific appraisers and the appraisers are not VA employees. The lender will review the appraisal and the borrower's credit, income, and assets to decide whether or not the loan should be granted.

Close the Sale and Move into Your New Home

If the loan is approved, you need to contact a state-licensed insurance agent. Typically, the title of the home is examined and insured by a title insurance company that may also prepare closing documents and enter them into public records. Once that's all taken care of, you can move into your new home!
 

The GI Bill provided veterans with a federally-guaranteed home loan with no down payment, making the dream of homeownership a reality for millions of veterans and their dependents. If you're a veteran who's interested in buying a home, here are the steps you need to take in order to obtain a VA home loan.
 

Article Source: http://EzineArticles.com/?expert=Keith_W_Springer

Article Source: http://EzineArticles.com/7917616

The Advantages and Disadvantages of VA Home Loans, By Keith W. Springer

So, you've served our country and want to buy a home. Department of Veterans Affairs home loans, known as VA loans (VAHL) for short, were created to help veterans and their families achieve the dream of homeownership. The program has benefitted more than 18 million veterans and dependents. VAHL, which are available to certain veterans, active duty military personnel, and reservists, offer many advantages, although there are also a few drawbacks.

The Advantages

One of the major benefits of VAHL is that they don't require a down payment. Furthermore, there are limitations on closing costs, origination fees, and appraisal fees. Another big advantage of VAHL is that there is no private mortgage insurance. The VA also prohibits lenders from requiring private mortgage insurance since they put a guarantee on the loan. Not having to pay for private mortgage insurance can save borrowers tens of thousands of dollars. Generally speaking, VAHL are a more affordable alternative to conventional home loans.

Applying for a VAHL is pretty much like applying for any conventional home loan, the only difference being that you also have to obtain a certificate of eligibility from the VA. The VAHL process takes two to six weeks, which is about the same length of time that the conventional loan process takes. Just about any lender that offers conventional loans or FHA loans also handles VA loans, so it's not difficult to find a lender to assist you.

The Disadvantages

Despite the numerous advantages that VAHL offer, there are also some drawbacks. One disadvantage of VA loans is that the maximum guaranteed loan amount is $240,000. While this might buy you a decent home in most parts of the country, in high-priced markets in California, it may not be sufficient. What's more, not all vets are entitled to a $240,000 loan. The actual loan amount varies depending on the borrower's income, assets, credit history, and debt.

In some regards, VA loans aren't all that different from conventional mortgages. For example, VAHL aren't any easier to qualify for than conventional home loans. If you have a low income or bad credit, don't count on getting approved for a VAHL. Additionally, it's a common misconception that VAHL's have better interest rates than conventional home loans. The reality is that interest rates of VAHL's are in line with those of conventional home loans. The primary advantage of VAHL's is the fact that you don't have to make a down payment.

There's also a one-time funding fee charged for VAHL's. Congress has levied this fee on VA loans since 1982. The fee ranges from 1 1/4 percent to 3 percent, depending on various factors, such as the veteran's service and whether it's a first or subsequent loan. However, this fee can be lowered if you make a down payment of at least 5 percent. For VA refinance loans, the fee can be anywhere between from a 1/2 percent to 3 percent. Many buyers finance the fee along with their home, but doing so can be quite expensive in the long run, amounting to tens of thousands of dollars over the entire term of the loan.

Ultimately, the choice between a VAHL and a conventional loan will depend on your individual circumstances. For most veterans and service members, VAHL's are a great deal, but in some cases, going with a conventional home loan or an FHA loan may be a better choice.
 

The VA prohibits lenders from requiring private mortgage insurance since they put a guarantee on the loan. Not having to pay for private mortgage insurance can save borrowers tens of thousands of dollars. Generally speaking, VA home loans are a more affordable alternative to conventional home loans. In some regards, VA home loans aren't all that different from conventional mortgages. For example, VA home loans aren't any easier to qualify for than conventional home loans. If you have a low income or bad credit, don't count on getting approved for a VA home loan.
 

Article Source: http://EzineArticles.com/?expert=Keith_W_Springer

Article Source: http://EzineArticles.com/7923128

Be Prepared for a Home Loan, By Arundhati M Kher

Everyone wants to buy a house these days, if not as a home for them to stay in, then at least as an investment for the future. But let face the facts - very few people can afford to buy a house outright. More often than not, people end up paying for the house through a loan. And this is what you need to prepare for. And this also depends to some extent on the house you intend to buy for yourself - things like the size of the house, the locality of the house and facilities available near and in the house all factor into the price of the house. More than likely you'll have to pay around 20% to 25% of the total transaction value when you're booking the flat. The rest of the amount can be taken out as a loan and you need to decide whether or not you can afford it. For this, you need to take a careful look at your finances and decide how much of your income and savings you can shell out for this house.

One thing you can do while you're checking on the financial aspect of the loan is using a home loan calculator. Generally, there are online calculators that can help you to sort out how much loan you're likely to get based on both your income and your liabilities. There are also calculators that help you to identify how much you'll have to pay as EMIs once you've got the loan approved and the time has come for repayments on the home loan. You can even calculate all of these matters if you've got a co-applicant for the loan. And frankly, the chances of you getting a loan are higher when you've got good credentials and a higher income and lower liability. Once you've decided how much you can shell out in terms of money, you need to zero in on a house within that price range. You might think that house hunting takes a while, but processing the paperwork for a home loan takes longer. So you want to do all that you can to get yourself ready for it, even as you're hunting for a home.

Look into what the application process is for a home loan. You should know that after getting a loan approved, the loan disbursement can take anywhere from a week to 10 days. But it can either increase or decrease depending on how many applications the bank will have to process at the same time.
 

Arundhati is a veteran author in banking and finance. In her posts she helps her readers find all the latest trends in finance market and also help them analyze loans for your needs, budget planning, etc.
 

Article Source: http://EzineArticles.com/?expert=Arundhati_M_Kher

Article Source: http://EzineArticles.com/8090590

3 Simple Steps To Clear Your Debt Faster, By M. Morgan-Bellinger

Effective Solutions To Get Relief From Mounting Debt

To enjoy relief from your growing debt problems follow these three debt crunching steps to clear your debt faster & reduce your stress from the mounting financial pressure.

However for those who spend more than they earn & are not willing to change their spending habits, they will soon be joining the rest of the crowd who are drowning in debt & living under enormous financial stress with their ever growing credit bill.

So if this is you, this article will show you how to pay off your debt fast & get relief from your mounting debt burden.

3 Steps To Rid Yourself Of Debt For Good

1. Get Rid Of Those Credit Cards

It is said that misery loves company & you are not alone if you have a certain amount of credit card debt as you will have plenty of company here.

The average American has approximately $9,000 in credit card debt alone & this is one of the main sources of getting into massive debt for many households.

So be ruthless & attack your credit card debt with urgency - the interest rates you pay are usually the highest which makes it an extremely expensive form of credit which will compound your debt problems if you are not paying off more than the minimum amounts

Without having that access to easy credit you will be forced to pay cash for your purchases & as a consequence you will only buy items that you really need.

You will also be encouraged to shop around for the cheapest price & end up being more economical with your money.

If you cannot pay cash for it, do not buy it - this goes for small items as well as big ticket purchases like cars.

2. Start Saving & Let the Power of Compound Interest Help You Eliminate Your Debt

Just to illustrate the power of compound interest, imagine if in 1950 you had invested $1,000 a year in a stock fund that generated an average return, it would be worth just under $2,000,000 today - not bad for a less than $100 a month investment.

So by saving a little every month you will be able to start creating wealth for yourself - you have to do this no matter how hard if you want to change your financial situation.

Instead of treating yourself to something that doesn't add any real value to your life, put the amount that you would've spent on that treat into the best interest bearing account you can find.

If you do this every month you will soon discover that the power of compound interest will be increasing your bank balance at a faster rate than you would ever have imagined.

3. Choose Cost-Free Options To Entertain Yourself & Family

Believe me, there are so many ways to get immense value & enjoyment out of life without having to spend money, for instance;

• going for a picnic with friends & family
• start running, cycling or any other sporting activity - after a morning spent doing this you will feel an immense amount of satisfaction & fulfillment & will not have the need to go out & spend money on entertainment, food & drink
• take lunch to work instead of going out for lunch

These are just a few examples but the point is that you can lead a fulfilling life without it costing you money - you do not have to pay to enjoy yourself.

In Conclusion, Only Take Decisions That Make Sound Financial Sense

Even if you are not swamped by debt you would be well advised to make decisions that are sound when it comes to managing debt & your financial health & wealth.

It goes without saying that if you could increase your income or wealth somehow you would have more disposable income & more money available for saving, paying off debt or just spending.

So it would pay you to equip yourself with better skills or qualifications to either get an increase, a better paying job or to start a business part-time or full time that will provide you with an income beyond your widest dreams.

PS. Improve your financial fitness by getting these tips & advice that will help you Manage Your Personal Finance better & create wealth.

or

just go to the following link for tips & advice for managing your personal finance & debt effectively:

http://www.loan-lenders.co.za/personal-finance/managing-personal-finance/

Article Source: http://EzineArticles.com/?expert=M_Morgan-Bellinger

Article Source: http://EzineArticles.com/7907315