Archive for December, 2006

Low Interest Rate Mortgage Refinance Loan – Benefits Of A No Obligation Refi Quote

Sunday, December 31st, 2006 Loans Online.

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Personal Loan For Consolidating Debt – Using An Unsecured Personal Loan To Improve Your Finances

Sunday, December 31st, 2006 online. Also, visit Debt Sanity for
more information on where to find the best

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Mortgages. Turn Your Pennies Into Pounds

Sunday, December 31st, 2006

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Choosing Your Loan Repayment Period

Sunday, December 31st, 2006

One of the crucial factors to consider when getting a loan is
the length of the repayment period that you will apply for.
This will affect how much you pay each month as well as the
total amount you will pay back. As well as getting the length
of repayment period right, you need to choose the right method
of repayment so that you can afford the repayments whilst still
paying your loan back quickly. Here is some advice about
choosing the right repayment period for your loan.

Shorter period is better

Whenever you are looking to get a loan, work out what the
shortest repayment period you can afford is for the amount you
want to borrow. Although longer repayment periods will mean
that you pay less each month, you will probably pay more in
total because of the extra interest you will pay over the
longer period. Always go for the shortest period you can afford
to pay, as this will help you to pay your loan off more quickly
and also save money by paying less in interest.

Standard loan repayments

As well as working out the length of your repayment, you need
to consider the different methods of repaying your loan.
Although not all loans offer different repayment plans, it pays
to know which plan will work for you so that you can find a loan
that fits these criteria. The standard repayment method is the
most common, where you simply pay a fixed amount each month
until you have paid off the entire loan. With this type of
repayment you know that you will be paying off the loan
steadily each month, and after a certain period you will have
paid the loan off.

Graduated repayment

There are some loans on the market that offer you a graduated
repayment scheme, meaning that the loan repayments start off
small but then increase after a certain period of time. This is
good if you have taken out a loan and expect your earnings to
increase over time, and so allowing you to afford higher
repayments. This method of repayment is less common and so you
will need to shop around to find a loan like this.

Balloon payments

Some loans allow you to pay just the interest each month for a
number of years, and then pay the final balance off in one go.
This type of repayment is good if you know you will receive a
lump sum of money in a few years but need to get hold of cash
now. This type of loan means you pay little at the beginning,
but at the end pay off the final balance. However, you
generally end up paying more with this type of loan as you are
only paying interest for the first few years of the loan.

Changing the terms

Although choosing the right loan period is important, there is
always the possibility that you can change the terms if you
need to. If you find that you can afford to pay off the loan
more quickly, then try and do this, although beware of charges
for early repayment. Also, if you find yourself struggling to
pay off your loan then you should speak to your lender and try
to arrange an extension for repayment so that you can more
easily manage the payments. However, remember that the longer
you take to pay off the loan, the more you are paying overall.

About The Author: Peter Kenny is a writer for The Thrifty Scot,
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The Benefits And Pitfalls Of An Endowment Loan

Sunday, December 31st, 2006

Endowment mortgage loans are one of the most controversial
types of loans, and have received good and bad press in equal
measure. If you are looking for a mortgage loan, then you
should look at an endowment mortgage loan as one option.
Despite these loans being quite popular, they can be complex to
understand. If you want to know more about the benefits and
pitfalls of an endowment loan, then here are some useful tips
to help you.

What are endowment loans?

Endowment loans are a type of mortgage that comprises of two
parts. The first part is an interest-only mortgage loan that
works like any other mortgage of this type. However, combined
with this is an endowment policy that you set up and mature in
order to pay off the mortgage at the end of the loan term. The
policy is set up to grow enough to pay off the amount you

Benefits of an endowment loan

The major advantage of an endowment loan is that you have very
low monthly payments, like you would have for an interest-only
loan. However, there is an added bonus in that you are
investing in a savings policy that will pay off your mortgage
loan. This means you are saving on your monthly payments as
well as spending your money wisely by investing in a policy to
pay off your mortgage. This can reduce the cost of your
mortgage loan whilst still keeping your payments low.

Pitfalls of an endowment loan

As well as benefits there are also pitfalls to an endowment
loan. Although the interest-only loan will reduce your monthly
payments, paying off only the interest means you are paying
money without reducing your debt in any way. And you are still
paying money into an investment fund so your monthly payments
are more than just the interest. Also, the investment fund is
designed to pay off the mortgage loan in full, but this is by
no means guaranteed. Many people are finding themselves in a
situation where there is a shortfall in the policy and they are
unable to pay off the mortgage in full.

Endowment vs. repayment loan

The major alternative to an endowment loan is the traditional
repayment loan, where you pay off the loan and interest each
month until the entire amount is repaid. These types of loan
carry higher monthly payments, and are a safer option than
endowment loans. However, during times when inflation is
increasing an endowment loan is a good idea, as the risk is
reduced and you can benefit from lower payments each month. The
key as to whether an endowment policy is right for you depends
on the current market and how willing you are to risk the
policy falling short of the full loan repayment amount.

About The Author: Peter Kenny is a writer for The Thrifty Scot,
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Which Mortgage Is Best For You.

Saturday, December 30th, 2006

Buying a home is probably the biggest decision you will every
make. But deciding to buy is only the first step in the
decision making process.

Now, you must decide what type of mortgage is best for you, and
if you’ve never bought a home before then the terms can be

Many factors must be considered when selecting the right
mortgage. Most importantly, borrowers must understand how the
different types of mortgages are structured.

The three most common types of mortgages are adjustable rate
mortgages, fixed rate mortgages, and balloon mortgages.

An adjustable rate mortgage (ARM) is structured so that the
interest rate is not locked down.

Usually, the introductory rate is set for about 5 to 7 years,
at which point it will be adjusted either up or down, depending
on the current interest rates.

After the initial rate adjustment, ARMs are usually adjusted
every two years for the remaining length of the loan. Interest
rate adjustment is usually capped at about 2 percent, meaning
that the interest rate cannot be adjusted more than that each

ARMs are also set with a maximum adjustment rate. If the
maximum adjustment rate is 7 percent, that means that the
highest rate the borrower ever pays is 7 percent above the
initial interest rate on the loan.

Fixed rate mortgages (FRM) are just that: fixed. The interest
rate will never be adjusted.

These mortgages offer the lowest risk to the borrower, because
they protect from rising interest rates. If the life of the
loan is 30 years, then the borrower is protected for 3 decades
from fluctuations in the market.

Drawbacks of FRMs are two-fold. If interest rates go down, you
are locked into a higher rate. And often FRMs carry higher loan
costs, because they carry high risks for the lender.

If a lender signs you to a 30 year FRM at 6 percent interest,
and then interest rates continue to rise, the lender is locked
into accepting 6 percent interest for the life of the loan.

Balloon mortgages operate quite differently, and are structured
so that there will be a balance at the end of the term – usually
5 or 10 years – that must be repaid.

Some balloon loans only require that you pay the interest
during the loan term, which means monthly payments are often
very low, but at the end of the loan the original balance will
be due in full.

Another type of balloon loan calculates payments as if the loan
were to be paid in full over 30 years, which does reduce the
balance at the end of the term.

Still, this type of loan must be refinanced after the loan term
is up. Balloon loans can be beneficial if the borrower expects
to resell the house at a profit before the ending balance comes

The type of mortgage you select depends largely on your plans
for the house. Are you planning to live in it long term or
short term?

Do you expect the property to appreciate rapidly? Keeping your
long-term goals in mind will help you choose the mortgage that
is right for your unique situation.

About The Author: Robert Michael is a writer for which is an excellent place to
find property links, For more information go

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Home Equity Loan – Factors To Consider

Saturday, December 30th, 2006

Your home provides you a wonderful means of securing a huge
amount of credit by using your home equity as collateral. In
recent times, more and more homeowners are viewing home equity
loan as the most convenient way to consolidate their other
debts, to make repairs or extension to the home, or to meet
additional expenditures such as wedding expenses, education
expenses and so on. There are various reasons behind the
growing popularity of home equity loan, such as the growing
number of easily accessible financial institutions, fairly
reasonable interest rates and fees, and reasonable terms and
conditions, tax deductible features and so on.

Despite these benefits, home equity loans, like any other types
of loans are not completely devoid of risk. And risk factors are
even more magnified if you fall into the hands of unscrupulous
moneylenders, who woo you with their lower interest rate, only
to rip you off. But the security of your home should be your
prime consideration and for that you should be careful of
certain things before settling on any financial institution.

You are required to pay a fee to obtain your home equity loan,
and this fee is generally low. The costs of obtaining home
equity loan involve 1% origination fee in addition to fees for
attorneys, surveys, and other related services. If any lending
institution asks for an exorbitant fee, just stay away from it.
It will be wiser to shop around and compare to find out the best

You will find many institutions offering you a loan on an
unbelievably lower rate of interest. But do not be deceived by
this, as the payment period may actually be stretched over a
longer period than you originally thought, and in effect
extracting from you a larger payment amount. So carefully read
all the clauses in the agreement before entering into a deal
with any financial institution.

You might have heard of those balloon payments. It is the
enormous amount due at the end of the loan period including
both the interest and principal amount. This occurs when the
lenders attract your interest with lower monthly payment rate
by making you pay only the interest each month. There are even
instances where the homeowner unwittingly assumes he only has
to pay the interest only on the loan, only to discover the
burden of the entire amount of the loan at the end of the loan

Comparison shopping over the internet can provide you with
valuable insight of the terms of various financial
institutions. This only can prevent you from becoming the
target of predatory lenders. Referrals from friends are also an
effective way of locating the good home equity loan provider.

About The Author: Looking for a loan with low interest rate?
Visit and
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No Down Payment Poor Credit Mortgage Loan – Why Use A Sub Prime Mortgage Lender?

Saturday, December 30th, 2006

Getting a home loan with no money down and poor credit is
feasible. Fortunately, various lenders specialize in mortgage
loans for all credit types and situations. Sub prime lenders
are unique and helpful. Finding a suitable sub prime lender is
easy. If using an online mortgage broker, you will have access
to several lenders eager to offer loans to high risk

Sub Prime Mortgage Lenders vs. Traditional Lenders and Banks

Even though several traditional mortgage lenders have begun
offering sub prime loans, a large percentage of these lenders
prefer applicants with good credit scores and large down
payments. Fortunately, sub prime mortgage lenders recognize how
difficult it is to maintain a good credit rating and save money
for a home purchase. Hence, these lenders are willing to take a
chance and give people the opportunity to achieve their dream of

If your credit score is above 670, you may qualify for a prime
rate mortgage. This involves considerably low interest rates
and lower fees. Sub prime lenders work with low credit
applicants. There are many types of sub prime lenders.
Fraudulent lenders will take advantage of applicants and charge
excessive fees. Those who do not compare lenders may accept a
bad loan. On the other hand, reputable lenders offer comparably
low rates. Additionally, applicants may obtain down payment and
closing cost assistance.

The Quickest Way to Get a Sub Prime Loan

If searching for a sub prime lender, the internet is a valuable
resource. Various mortgage loan companies offer online
applications and quick responses. Getting approved online is
simple and convenient. Moreover, getting multiple quotes from
at least four different lenders is possible through a mortgage

Applicants simply complete an online quote request, and within
minutes a broker will email quotes. Broker quotes afford the
opportunity to make side-by-side comparisons. Each quote
includes detail loan information such as loan terms (15 or 30
years), interest rate (low fixed rate, ARM, interest-only),
mortgage payment, and closing costs. Hence, applicants are
aware of all costs before accepting a loan offer.

After carefully considering the pro’s and con’s of each offer,
applicants must select a quote and complete the loan approval

About The Author: Carrie Reeder offers advice about
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No Credit Car Loans – Buying Options For People With No Credit History

Friday, December 29th, 2006

Occasionally, having no credit history can be as bad as having
a poor credit history. Before granting credit, lenders need to
gauge an applicant’s creditworthiness. If you have no previous
creditors, a prospective lender may consider you a high risk
and either deny a credit application or offer a high interest
rate. This applies to credit cards and automobile loans.
Fortunately, there are many options available to those hoping
to obtain a vehicle loan with no credit history.

Bad Credit and No Credit Auto Lenders

Automobile loans are different from other types of credit. If
you have bad credit or no credit history, getting a credit card
or personal loan is challenging. For the most part, these types
of credits are unsecured. Hence, the creditor suffers a loss if
you are unable to repay the money.

On the other hand, automobile loans are secured. Thus, some
lenders specialize in bad credit or no credit car loans. In
fact, auto loans are ideal for establishing credit or
rebuilding credit. Unfortunately, if you have never financed a
car, some lenders may charge higher fees. Here are a few tips
to help you get a low rate auto loan.

Establish Credit before Applying for Auto Loan

The easiest way to get a low rate on an auto loan is to
establish credit before applying. In some instances, lenders
prefer applicants who have previously financed a vehicle. If
you repaid a previous car loan, or maintained regular payments,
lenders consider this a good sign. Hence, you may qualify for a
low rate.

If you have a superb credit rating, you may qualify for super
low advertised rates. Establishing a good credit history is
easy. Within six months of opening a new account and making
regular on-time payments, your credit score will soar.

Use a Co-signer When Applying for Auto Loan

An additional approach involves obtaining a vehicle loan with a
co-debtor. If you are married, your spouse may act as a
co-debtor. Moreover, young adults trying to get an auto loan
may have a parent co-sign for the loan. To qualify for a low
rate, the co-debtor must have good credit.

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Can Borrowers With Less Than Perfect Credit Obtain 100% Financing For A Bad Credit Mortgage?

Friday, December 29th, 2006

Unfortunately, in today’s America too many people have found
themselves in a position of having less than perfect credit. On
the other hand, many lenders are now using more lenient lending
guidelines than in the past to approve borrowers with bad
credit for a mortgage. As a result, even if you have bad
credit, you may still be eligible for a home loan that covers a
full 100% of the financing.

Below, I’ve listed a few ideas that may help you get approved:

Online Mortgage Lenders

Remember, the lending industry is very competitive. Lenders are
always looking for new customers and virtually all loan officers
work on a commission and so if the loan doesn’t go through they
don’t get paid. As a result, it’s in their best interest to do
whatever it takes to get you a loan – regardless of how bad
your credit is.

Many online mortgage lenders specialize in bad credit borrowers
and by contacting multiple lenders you will clearly increase you
odds of not only getting a loan but ensuring that you get the
best interest rate and loan terms possible.

Tip – Bad credit mortgage lenders have higher interest rates
than traditional lenders that only loan to borrowers with good
credit. As a result, it is advised that you survey the market
well in advance, so that you may look for various bad credit
mortgage packages and have the time to compare and choose the
one that fits your current situation and budget.

Credit Report – Make Sure It’s Correct

Your bad credit may not be your fault. Mistakes by the primary
credit reporting agencies do happen and so it’s always a good
idea to get a copy of your credit. Request a copy of a
tri-merged credit report from every lender you apply for a loan
from. The reason you want a tri-merged credit report is because
all loan decisions are based on the middle credit score and so
if you only get a credit report from a single credit reporting
agency it won’t accurately reflect you credit score. Plus, any
discrepancies may only show up on one or two bureau reports and
so you need a full credit report to verify that there are no
mistakes. Of course, if you find an error make sure you dispute
them immediately.

You may also want to check for old negatives. If you dispute
these negative items, you may be able to get them removed from
your credit report. Sometimes collection agencies have moved
your information around so much that the records are a mess.
They may not even make an effort to challenge your dispute.

Cleaning up your credit report can quickly improve your credit,
which will in turn increase your chances of getting a mortgage
that has lower rates and better loan terms.

Tip – Bad credit mortgages are a kind of secured loan which is
usually secured against the house that you buy with the loan

Interest Rates

Interest rates are constantly changing. Although they don’t
bounce around quite as much in the Subprime market as they do
in the retail (good credit) market they do and can change quite
a bit. Therefore, pay attention to interest rates to determine
when the best time is to apply for a loan.

Tip – For options in finding the best lender for you, check out
the links below.

About The Author: Visit or or for more information
on loan and mortgage options.

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