eloanequityconnect.com

Student Loans: Must You Borrow?

December 22nd, 2008

Different loans are available for students to borrow. But must you really borrow? Read on and find out, maybe you can think twice before you go into the process of getting student loans.

1. Avoid the loan trap
Many times, you are lured to borrow the maximum loanable amount. This is what we call as “loan trap”. When you fall into this loan trap, you are enticed to borrow what you can really afford to pay back. It is better to apply for loan that’s based on need. You may even find out that you don’t need to repay it while you’re still attending college or school.

2. Decide on how much you need to borrow
How much do you really need to borrow? Just borrow what is enough and what you really need. Again, don’t get trapped by borrowing the maximum amount indicated in the student loan.

3. Decrease your loan if possible
Before borrowing, think of what options you can have to decrease your expenses. To avoid further incurring more loans, you can think of working during the schoolyear or getting scholarships in college.

4. Get Loans with Lower Interest Rates
Don’t jump at any student loan offered to you. Lower interest rates will mean that you’ll have to repay less.

Tags: Student Loans
Posted in Student Loans | 2 Comments »

Mortgage Rate: How Much Can You Afford?

December 20th, 2008

Before getting any mortgage, look into the mortgage rate. This is the key factor for every mortgage borrowers must consider.What is mortgage rate? It is defined as “the standard interest rate given by mortgage lenders” and “the rate of interest paid on the mortgage loan expressed as a percentage”.

For Americans who will get a mortgage, it is imperative that they must know firsthand the mortgage rates that are applicable in a loan. Why? Because mortgage rate is the deciding factor that dictates the total amount of the mortgage plan. This also makes the big difference in many loan applications. By knowing the lowest and the best mortgage rate, you can save thousands of dollars in interests alone.

Besides the different mortgage rates of lending companies in the US, the mortgage rate in the country varies depending also on the state or location of the house to be built.

Mortgage rate undoubtedly plays a role in lending, it is therefore important for anyone planning to mortgage to find out the current rates before deciding on a mortgage plan. Mortgage rates are unstable and it isn’t easy to determine if these will go down or up. However, there are certain economic indicators that can be used as point of references when the mortgage rate will be affected.

Take note that the rise and fall of bonds and treasury notes has a direct relationship with interest rates including mortgage rates. If you are aware of this relationship, it can help a borrower determine if getting a mortgage in a certain period of time is feasible for him financially. It will also help him get lower mortgage rate and save some costs.

Apart from all these, when a person wants to get a mortgage, he must also understand that several factors affect the mortgage rate one will have from his loan. These factors are:

a. Amount of loan. If the loanable amount exceeds the loan limits created by Freddie Mac and Fannie May for conforming loans, the mortgage rate is increased.

b. The duration of the loan. Shorter loans will mean a lower mortgage rate but higher monthly payments. But having shorter loans will assure you that you will be able to keep thousands of dollars later.

c. Down payment – A higher nonpayment that is more than 20% will give the borrower the best possible mortgage rate. Down payments of 5% or less will require higher mortgage rate.

d. Closing costs. It is advised that a borrower pays the closing cost than let the lender pay this. There is usually the case when borrowers don’t want to pay all of the closing costs, so they get a higher mortgage rate applied to their loan.

e. Adjustable Rate. ARMs or Adjustable Rate Mortgages provides a borrower a lower mortgage rate on the start of the term but payments will also increase as mortgage rate increases over the next period of years.

f. Credit Background. If a borrower has a positive credit record, it usually follows that he gets approved for lower mortgage rate.

g. Income. Besides good credit standing, borrowers with monthly income that’s more than their monthly credit obligations are approved for lower mortgage rate. Borrowers with credit reports but have monthly incomes that barely cover their credit obligations will not be given the lowest available mortgage rate.

Tags: Factors Affecting Mortgage Rates, Mortgage Rates
Posted in Mortgage | 3 Comments »

House Prices Set to Tumble by £40,000

December 17th, 2008

According to a recent report house prices in the UK could be set to fall by around £40,000 by the end of next year, and this would mean average house prices would be back to the same level as they were in 2004. Figures suggest that house prices could fall by 20% on a peak to trough basis by the end of 2009. The figures have been released by the Centre for Economics and Business Research (CEBR), which claims that it will be 2010 before house prices start to stabilise.

On a brighter note the company has predicted that it 2011 and 2012 the housing market will see a new boom, so those nervous about falling into loan negative equity over the next two years could see the problem rectified later on. Whilst the Bank of England has cut interest rates significantly over the last two months the agency still believes that house prices and property sales will continue to decline over the next year or two.

An official from the CEBR said: ‘Confidence in the housing market has been shattered as lack of mortgage availability has left few sellers chasing even fewer buyers, and expectations of falling prices have become embedded. Now that the financial crisis turns into an economic crisis with rising unemployment and falling household incomes, we could see house price falls starting to accelerate again.’

He added: ‘However this will to some extent be offset by aggressive cuts in interest rates, at least some of which will be passed on to homebuyers, combined with a gradual relaxation in mortgage availability as the impact of the banking rescue package kicks in.’

Tags: Mortgage, UK House Mortgage Price
Posted in Mortgage | No Comments »

Getting Out and Staying Out of Credit Card Debt

December 13th, 2008

Credit card debt is a major cause of over one million bankruptcies each year. The reason is that many people get a credit card without researching and reading the fine print. By the time annual fees are added on, along with spending indiscriminately, payments are missed, which causes their balance to skyrocket.

Although we all like to place the blame on the credit cards and the credit card companies, you need to keep in mind that the real cause of your financial mess is you.

One shopping spree does not usually cause high debt. It is usually a pattern that consists of gradually increasing purchases that add up to a large debt. The great thing is that it can be very easy to get out of debt. The key is to start spending less than you make. This is a long-term solution that can help you to whittle your debt down.

Although it may sound simple, it can be very difficult if you have a problem with willpower. It is important to stick with spending less than you make or you will find yourself in exactly the same place as you were before. Overcoming your debt will take willpower and a great deal of time.

It may be difficult to stick with your debt repayment program, but keep yourself strong and you will find yourself out of debt before you know it.

It is important to learn how to get out of debt and then stay out of debt. If you can summon enough willpower and strength towards your finances and spending, then you will find yourself the winner in the game of debt. It may be easy to get into debt, but getting out of debt is much more difficult, but worth it.

One simple phrase can sum up the solution to your financial problems. If you don’t have the money to spend, then don’t spend it!

Tags: Credit Card, Credit Card Debt, Eliminate Credit Card Debt
Posted in Credit Cards | 5 Comments »

Can You Really Find Free Access To Credit Reports?

December 13th, 2008

In reality, if you have a good credit today in the bank, the better chances of getting loan, such as car or home. It is more important that you know how your credit score rates in the bank. Remember, it’s hard to get any line of credit without first consulting your credit score, which means that you should find a free access to credit reports, but be careful how you get the access. The significant factor of keeping up with your credit report is to make sure you are not a victim of identity theft. There are people who may use your social security number for their own interests, especially if you have good credit scores. That is the reason why you should have a free access to credit reports. This will reveal your family finances, keep you more secure and provide you the necessary informations regarding your credit.

Looking for a free access to credit reports is also risky. Many advertisements are promoting this. They will send you subscription services so that your credit report will be sent to you each month with an annual fee, but requires you to sign up for the services. This might not be a bad deal, but remember that it is not really a free access to credit reports in the way you expected it.

Access credit reports annually through a new program that allows free access. All you have to do is answer questions about who you say you are in the information, the day you were born, the make and year of your vehicle from five years ago. These may be hard questions, but this is to verify your true identity and for your own protection in order to access your credit report. Also you may be able to view the limitations in your credit and to be sure that no one else is getting credit in your name.

Tags: Credit, Credit reports, Free Access to Credit Reports
Posted in Credit | No Comments »