Category Archives: Finance

What Amount of Reverse Mortgage Can You Get?

reverse mortgageThere are advantages of owning a home than just saving the rent you were paying. You can take a loan against your home to undertake your projects. Reverse mortgage in Missouri is a loan that uses your home equity to give you money.

Although it is not the cheapest method to borrow, it’s worth comparing other options before getting one. The duration of the loan depends on certain calculations, and the amount of money that you can get depends on various factors.

Four of these determinant factors include:

Equity

The more the home equity, the higher amount of loan money you can get. It works best for some borrowers who have been paying down their loan for many years, and their current mortgage is almost paid.

Age

Older borrowers are likely to get a higher loan amount compared to the young. A younger spouse will be required to vacate should the older borrower die, and the younger one is not in the loan processing documents. Your choice to acquire the loan is as vital too. You can select on various payouts.

Time-To Time Payments

You can prefer to get regular payments, say monthly. Such payments would last for good or for a specified time like ten years. If you are required to pay the loan because all borrowers have left, the payments are fully paid.

About lifetime payments, you can end up getting even more than expected if you live longer.

Line of Credit

You can decide on taking a line of credit that will allow you to get funds when you need them. The benefit is that you only pay interest on money you have indeed borrowed, as it increases your credit line with time.

You now know of an alternative way of getting money as a homeowner. Consult a reverse mortgage lender in Missouri with information concerning the above factors and increase your chances of securing a loan.

Mortgage Application: Don’t Forget Fees and Penalties

Loan on the monitor of a macbookWhen applying for a loan, most borrowers tend to focus more on their down payment, interest rates, and monthly payments. Many fail to evaluate hidden fees like closing costs and prepayment penalties. If you’re applying for a mortgage and don’t think about them, you may set up yourself for extra expenses before you can finally own your home.

Avoid Surprises Related to Closing Fees

Whether you’re purchasing a home or refinancing a loan, you will need to pay closing costs. A lender or mortgage company should give a Good Faith Estimate (GFE), which lists all related closing costs. Altius Mortgage Group and other mortgage companies in Utah note that these differ based on the type of property, its location, and your loan type. In most cases, buyers pay about 2% to 5% of home’s value in closing fees.

It’s good to know that some fees in the closing costs are unnecessary and negotiable. You can ask your lender to have some of those fees removed or ask them to explain why they are necessary. There is also the no-closing cost mortgage, which may cost you more in the long run. This is because the lender may charge you with a higher rate or include the closing fees into the total loan amount.

Extra Payments and Penalties

Some loans carry prepayment penalties when you may extra mortgage payments. Note that not all loans have this, so it means that you may have agreed on this when you close the purchase. If you’re not sure, it’s best to check with your lender. The penalties could apply if you pay the entire balance (by selling or refinancing) or pay a large amount all at once.

If you, for instance, received an inheritance or get a promotion, making extra payments can reduce financial burden in the long. This also reduces your total payment and helps build equity faster. Before agreeing to a loan, you may want to ask your lender to have this removed if possible. Note that paying extra can also lower the number of interests paid.

Buying a house is a financial decision, so you shouldn’t overlook other fees that can affect your payment in the future. Talk to a reliable lender to learn more about your mortgage options and all other associated fees.

Avoid Committing Major Car Buying Mistakes in 4 Steps

man checking out a car with car salesman behindThe process of buying a car — be it new or used — can be extremely overwhelming. It involves many things including the price, the type of service you want, and the maintenance cost. This is practically the reason many people commit mistakes as they go through the process.

If you’re thinking of purchasing a vehicle, here’s what you need to know to avoid the possible blunders of this transaction:

Do Your Own Research

This is the most basic and essential step for every consumer. Whether it’d be a car or a small item, doing proper research could take you a long way. You can’t simply enter a dealership or a car shop without knowing what you need and want. If you do this, you’ll be more confused and scammers may likely take advantage of you. At least show them that you’ve done your homework and you’re knowledgeable in the field so they can’t push you over.

Test Drive the Car

Whether it’s new or pre-owned, test driving the vehicle would allow you to check the overall performance of it. Get behind the wheel and be sure you put the car into a test. Don’t simply drive in a straight, boring route.

Instead, go the same route that you often travel. This would provide you with accurate insight on the car itself. In fact, most used car dealers in Jacksonville give their customers 100% freedom in testing the car for their customers’ own satisfaction.

Don’t Focus on the Price

Money might be everything, but your search must not simply revolve around it. Although car buying is considered as a major investment, looking into the price of the car will never get you anywhere.

Instead of solely concentrating on the tag, you need to pay more attention to checking the functionality and condition of the car. This is especially true if you’re planning to buy a secondhand vehicle. This way, you’re 100% sure that you’re choosing a ride that would match with your lifestyle and would meet what you need.

Look at Financing Terms

Another major mistake you must avoid is failing to review the repayment terms. Don’t get easily swayed by the big and eye-catching tags, which say 0% interest or big discounts. Chances are they are hidden costs, which lie beneath them. Be sure you look into them thoroughly to avoid surprises. Don’t be afraid to ask questions whenever you want to clarify and know something.

Never skip any of these steps to ensure you’re making a smart choice for your ride. If you think you help, don’t hesitate to consult an expert or an auto mechanic you truly trust to assist you throughout the process. After all, this is all about your own money, comfort, and safety.

The Coldest of Winter: Keeping Utility Bills from Ruining the Homeowning Experience

Man at desk in shirt and tie holding his head and worrying about money.Many homeowners find that the joy of owning a home fades quickly when they are faced with high utility bills every month. The situation arises during the inevitable winter period when you have to turn on the heat or freeze to death.

According to the U.S. Energy Information Administration (EIA), households that use electricity to heat up their home spend an average of $930 during winter. If propane is your go-to heating medium, you are likely to spend $1,437 to keep warm. On the flip side, households that rely on natural gas for heat spend an affordable $578 during winter.

Make the right choice of heating method

Pay close attention to the type of heating system before making a purchase. Systems older than 20 years are likely to cause you grief in the long run. They are often inefficient and could lead you to incur a fortune in energy bills due to inefficiencies that lead to heat loss.

Again, you are likely to suffer frequent breakdowns, which are both costly and uncomfortable. If unsure, have an expert examine the system and advise you accordingly. For instance, you need to understand whether the home uses a hot water or a forced air heating system.

Factor in your creature comforts

Having a fireplace at home is a great way to create a warm and cozy environment for your family. Unfortunately, the idea of stacking logs and idea of having the house smelling of smoke is a deal breaker for many.

Luckily, Comfort Solutions says that you can now have a fireplace in Utah without worrying about the smoke. All you need is to replace your traditional one with a new fireplace that runs on natural gas or even electricity.

With the help of the installation experts, you can convert your old and probably unused fireplace into an excellent source of heat.

Making the right choice of a heating system is the key to keeping your home warm in the dead of winter without incurring a fortune in heating bills. With the help of a credible heating expert, you can make the right choice or modifications to suit your needs.

 

Algomi Investment: Collaboration is Key

a businessmen writing down notes for financial technologyWhen financial technology companies began to gain some reputation and speed, the incumbent market infrastructure refused to embrace the newcomers’ technological advances, fearing their monopoly over the financial world could be compromised.

But, in today’s highly technological era, it would be impossible for financial institutions to ignore the impact that technology can have on the way they go about business. Ignoring these technological advances would also impact negatively on their customer service.

According to a recent report by the World Economic Forum, partnerships between well-established financial institutions and up-and-coming financial technology companies is the key to gaining shares. The report states that brand new market platforms don’t often challenge the incumbent institutions and that partnerships are the way forward when attempting growth.

Euronext and Algomi

A great example of this partnership is the recent Algomi investment. Euronext, the pan-European exchange recently invested $10 million in UK-based software developer Algomi. They have entered a 10-year development plan to create a trading platform to increase liquidity.

Algomi’s new software does this by aggregating software from all of its existing software designed for buy-side and sell-side traders. All of Algomi’s software shares anonymous data in huge quantities to give traders a better picture of the overall market.

Euronext has chosen Algomi investment because the company have been on the up and up since their founding in 2012, and they can develop software with Algomi that will directly affect their company in a big way.

Euronext has extended its licence with Algomi beyond 10 years, securing Algomi’s future as a big player in the financial technology industry.

Many large financial institutions have chosen to diversify in this way, like Goldman Sachs acquiring Honest Dollar, the digital retirement savings platform, to roll it out to their customers worldwide.

Huge renown in the financial technology world

Algomi and its founders have been awarded countless accolades and awards for their innovation and exciting technology.

Euronext plans to release this new trading platform soon and intends to develop it further and build the network to break into the North American market. This is definitely a partnership to keep an eye on.

Factors to Consider When Looking for the Best Mortgage for You

MortgageA mortgage takes many years to pay in full. Thus, you have to make sure that you find one that you can manage well.

Getting the best mortgage rate in Salt Lake City would be an advantage. But, there are other factors to consider. Here are some of them:

Mortgage Type

There are two main types: fixed and adjustable rate mortgages.

Fixed Rate Mortgage – The interest rate remains the same throughout the term of the loan. It allows you to budget your payments. The downside is when there is a general decline in interest rates. Interest on your loan does not go down.

Adjustable Rate Mortgage (ARM) – At the start of the loan, the interest rate for an ARM is often low. It will then fluctuate throughout the rest of the term. You will pay less if the prevailing interest rate goes down. If it rises, you will pay more. 

Lender

It is best to compare offers from different lenders. Interest rates and terms may vary from one lender to another. Compare mortgage products with the same features to make sure you are getting the best offer.

Mortgage Rates

Various factors influence the interest rate on a mortgage. These include economic and market conditions, as well as your financial profile. You can qualify for preferential rates if you have an excellent credit score and a steady job.

Mortgage Fees

Aside from interest, other costs come with a mortgage. These may include loan administration and processing fees. Thus, it is also important to consider the “junk” fees when comparing mortgages.

Lock Period

Offers from lenders are only good up to a given period. Interest rates are locked-in during this time. Beyond the lock period, the interest may go up or down, depending on prevailing conditions.

Consider these factors when looking for the ideal home loan to get. This will help you land the right mortgage for you.

Man in suit watering a plant

Ensure That Your Future Is Financially Secure In Two Smart Moves

Man in suit watering a plant

Surprisingly, money management skills rank as one the difficult skills to master. College graduates, after sitting for and passing difficult subjects such as calculus, often falter in all matters money management. In fact, the vast majority often make critical money mistake in their adult lives. 

Money management remains an elusive skill that leads many people to ruins. However, that doesn’t always have to be the case since it only needs you to make small incremental changes in your life.

Pick your Debts Carefully

Sure, the average student graduates from college saddled with tens of thousands of dollars in student loans. That should serve as your wake-up call about debt management. Left unaddressed such a debt can ruin your finances even in your old age. 

As such, you should make every effort to lower your debt portfolio immediately you secure a steady job. Be sure not to incur unnecessary debts. Be modest in your purchases, at least until your finances improve. While spotting the latest gadgetry is chic and fashionable, it only serves to bury you under a ton of debt in the end.

Educate on All Money Matters

No, this doesn’t mean that you enroll for an accounting class in some college. Although that wouldn’t hurt, there are easier approaches to improving your money skills. More than just limiting your expenditure, you need to find the best way to manage and invest your money. While a savings habit is a noteworthy practice, it can hardly make you rich or secure your future. 

You need to learn and sharpen your investment skills and make your money work for you. Similarly, you need to sharpen your borrowing skills when you need to procure a loan. Such skills are the key to getting the best rates when taking a title loan from Utah Money Center in Salt Lake City.

Sharp money management skills are the key to securing your future financially and avoiding costly money mistakes. By picking your debts carefully and improving your money management skills, you can be sure of a bright and secure future.

Pay Off Debt with Another Loan: Debt Consolidation 101

Business woman stressed about her debtsDebt can become a big issue in your life if you easily rack your debts up. Although at times, putting yourself in debt can be a necessary sacrifice when you need cash or you need funds that can pay for what you want or need. When left unpaid, however, debt can bring a whole world of trouble and headache hurtling your way.

Debt Solution

Now, many American households suffer from massive debt. You may be having a hard time paying off your debts. Unless you earn a high-paying job or some other good fortune, you have limited options before you to settle your debts. Other people have filed for bankruptcy, but you can pay off your debts through debt consolidation.

Consolidate Your Debts

Debt consolidation means paying off all your separate debts using credit or cash you took from one loan. Such a step protects your credit rating and even gives you time to repay your debts. You can consolidate your debts by either using a balance-transfer credit card or a personal loan.

Loan Over Credit Card

Now, a balance-transfer credit card works best for individuals with good paying jobs and can easily pay off their credit. You wouldn’t be in a debt predicament, however, if you had a good paying job and have the capability to pay easily. For individuals who need more time to pay a debt, you can go with a personal loan. In fact, a personal loan or title loan from easytitleloansutah.com may be your only option if your debts come from your credit cards.

Loan Tips

Personal loans have lower interest rates which may be favorable for you. You still have to be careful not to accumulate even more debt, however. You can end up with more debt if you spend too much. Perhaps refrain from expensive luxuries and wants for the meantime.

Here in Ogden, you can find a loan company that offers personal loans; the loans may just be perfect for your debt consolidation. The company also offers Ogden title loans, car loans, and signature loans.

What Estate Planning Can Do for You

Couple Doing Real Estate PlanningMost people mistakenly believe that only the wealthy could have an estate. The truth is, most people have an estate. Your estate is everything that belongs to you. For example, your house, car, jewelry, investments, life insurance, and savings are all part of your estate.

Like everyone else, you can’t take your estate with you to the grave. When you’re gone, you can’t decide who gets what anymore. That’s why you need an estate planning lawyer in Utah to help you decide as early as now– according to the law firm McCullough & Sparks— where your property goes or how it is managed, no matter how big or small it may be.

To simplify estate planning, it helps enforce your wishes on who should receive what from your property and when. What may complicate this matter, however, are the legal fees, taxes, and the court expenses. Your lawyer can help you minimize these issues with good estate planning.

With proper estate planning, you can ensure that you pass your values along with your possessions. For many, this also means that your estate takes care of you if you become disabled or that anyone from your family with special needs still receives care. It also ensures that a guardian can manage your children’s inheritance if they are minors.

Your estate includes life insurance, disability income insurance, and long-term care insurance to protect your family’s income if you are incapacitated or sick for an extended period. It would also ensure that your business is properly transferred to your designated heir when you retire or pass away.

Estate planning also ensures your estate does not get wasted on taxes, court fees, and legal fees. As long as you are alive and capable of changing your estate, you will have the power to do so. Estate planning is always an ongoing process, and requires proper documentation, so it is a good idea to have your lawyer work on it now and not only when you get to retiring age. Many things can happen, so it’s best to prepare early.

Want to Obtain a Bad Credit Refi? Heed These Pieces of Advice

Applying for RefinanceBlemished credit is one of the hurdles of applying for a refinance. Even if you have an existing loan, the refi lender would review your current credentials because you’re technically applying for a new mortgage.

Although a low credit score is a major liability, it doesn’t necessarily mean you can’t acquire a new loan in hopes of saving money. Contrary to popular belief, the subprime market is hale and hearty. In fact, American Loans noted that the number of lenders offering bad credit refinances in Utah, California, Illinois, and other states keep on growing.

How to play your cards right? Here’s what you need to know:

Check Your Credit Report

Review your credit history and identify the items that are pulling your score down. Late payments, defaults, charge-offs, and high credit card balances are some of the things that scare lenders.

Before you apply for a refi, take key steps to erase (or bury) them in your history. Over time, settling your old accounts and paying promptly would go a long way. Even if your credit score is still below 620 when you call lenders, at least you have a better chance to get more favorable terms.

Addendum: Make sure your credit history is free from errors before applying. Any inaccuracy in your report would negatively impact your credit score.

Set Your Expectations Right

As much as you want to snag the best rates available, accept the reality that you may not qualify for the lowest interest. Even if you manage to obtain a rate lower than your current mortgage, do the math to find out if it’s worth it.

Instead of basing your decision on the rate alone, calculate your expected monthly repayments with the term and closing costs in mind. If you plan to move and sell your home before you reach the breakeven point, you might better stick with your existing loan.

Have Some Redeeming Qualities

If your credit score is less-than-stellar, make up for it in some other ways. For instance, keeping your debt-to-income ratio lower than 43% would boost your chances of approval. In addition, make sure you have a good job history and some cash reserves to make your case stronger.

Although getting approved for a refi with your bad credit may seem like a miracle, don’t just accept any deal. Make sure your new mortgage would be truly beneficial for you in the long run. If it wouldn’t improve your current financial situation, then keeping your current loan might be a better decision.