Archive for August, 2007

10 Secrets To Better Mortgage Rates In A Changing Mortgage World

Sunday, August 5th, 2007

The article is preformatted to 60CPL.

10 Secrets To Better Mortgage Rates In A Changing Mortgage World
Long gone are the days of the 100% stated income mortgage
loans with a 620 credit score. Some high powered Wall
Street executives took advantage of us all by promoting
loans that inherently placed people in tough financial
positions. We all see where that has taken us now. In
fact, everyone sees it all over; there are a record number
of delinquencies and foreclosures, millions of them. Why,
because a percentage of these borrowers should never have
received the loan they did. Our ’10 Secrets to Better
Mortgage Rates’ can change a lot of things for a lot of

Maybe some people could afford a home, but just not the
$350,000 one. The mortgage industry has a responsibility
to educate our customers and build strong lifetime
friendships. We must look at the long term goals of owning
a home, rather than owning what we want now. Build
yourself in the `Best Borrower’ so you can get the home
that you have always wanted, it is really not that
difficult. If you make your mortgage payment a struggle,
it will only hurt you in the end.

There is something to be said about the years of `buyer
education’ our parents went through to buy their first
home. It created financial strength. Often times it took
years to accumulate enough money to buy the American Dream.
Imagine both the financial commitments and attention to
credit that must have had? Did you know that the subprime
mortgage industry is really less than 20 years old? It was
only recently that the birth of the `not so perfect’ credit
mortgage and `now you need less that 20% down’ mortgages
were born

Ironically, it’s these new ideas that have allowed many
more people to own a home. The United States has recently
achieved its highest percentage of home ownership in our
history. Obviously home ownership is great; however, it can
show it’s ugly face with foreclosures and all the stress it
causes as well.

So we would like to offer you the `10 ways to be your best
borrower in a changing mortgage world’. These may sound
simple, but absolutely everything in this world has
fundamentals and building blocks that we can apply if we
are to get the most out of them. This guidance will make
you a stronger borrower and will get you better mortgage
interest rates.

1) Pay your rent/mortgage on time with checks. Lenders
want to see a consistency in major payments. None are more
important than your current rent or mortgage. Even if
their landlord lives next door, pay by a check. Days of a
private Verification of Mortgage have gone away. This
stability in payment shows a stronger borrower.

2) When building credit, pay on time and avoid high
balances. We are looking at buying a home twelve months
from now. Pay a little extra every month. Stay away from
the specialty finance programs that say “18 months same as
cash”. Most likely these programs will give you a credit
line for the amount of the unit you are purchasing. Fore
example, that large screen TV for the big game. The line
is maxed when you buy the unit. New credit opened and then
it’s maxed. This has many negative effects.

3) Stay in that car for a couple more months. Get in the
home and then go after the car. This can really drive your
score down.

4) Buy a home within your means. This will allow you to
keep the home and get the home that they want when they can
afford it. This benefits all of us.

5) For cash paying incomes =96 Deposit your money first!
Many banks have 12 months bank statement programs. This
can allow you to avoid stated income products and higher
rates. We all love our extra part time bartending job.
Showing this income to a lender will help as well.

6) When paying down credit lines, keep them open. Don’t
pay them off. Credit lines that are paid off negatively
affect credit

7) Educate yourself. Stay up to date on programs and
industry trends. For example, right now a 40 yr mortgage
is better than an interest only or a 50 yr program. The
secondary market, which drives mortgage programs and rates,
looks negatively on 50 yr and interest only products. When
this happens your rates become higher.

8) Look at the benefits on refinancing. Most lenders use
these guidelines called Net Tangible Benefits. This is
there to protect you as a borrower. Are you getting 10%
cash out? Are you lowering their payment by 10%? Are you
moving from a Adjustable Rate to a Fixed Rate? If there
is no benefit, think again. This is probably not the
lender for you.

9) Know what payment will affect your credit the most.
Your home and your car can affect you the worse. It can
take 12 months to repair this damage. Don’t ever think one
payment won’t hurt.

10) Before you refinance, can you take out a Home Equity
Line of Credit? Most HELOC’s do not have a prepayment
penalty. Take one out to repair the credit and pay off
debts and then refinance. Over time a borrower will save
more then the costs of the HELOC because their mortgage
interest rates are lower. 40 to 100 points in your score
can make a lot of difference to your rate.

If you know the 10 Secrets to obtaining your best mortgage
terms before you buy a home, you definitely will saves
thousands of dollars.

About the Author:

Scott Pasinski is a Senior writer for as well as a
profession mortgage broker.
philosophy is to provide valuable information to homeowners
throughout the United States.

Refinance After Bankruptcy – How Does Your Bankruptcy Affect Home Mortgage Refinancing?

Sunday, August 5th, 2007
– We maintain an updated and current list of mortgage companies
online who service borrowers with credit problems.

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Personal Debt Consolidation Loans – Can You Qualify?

Sunday, August 5th, 2007 online. Also, visit Debt Sanity for
more information on qualifying for a

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Home Mortgage Loans For People With Bad Credit – Finding The Best Low Rate

Sunday, August 5th, 2007

Getting a low rate mortgage with a negative credit rating is
challenging. When people finance a home, obtaining a good
finance package is a top concern – and for good reason. The
mortgage rate received on a loan may significantly increase or
decrease a monthly mortgage payment. If you have good credit,
getting the best low rate is simple. However, if you have bad
credit, you may have to exert a little energy and search for a
good rate.

Compare and Contrast Mortgage Rates and Terms

Smart buyers will stress the importance of shopping around for
the best deal. This rule applies to any purchase – cars,
clothes, shoes, etc. Homes are our biggest expense.
Unfortunately, many home buyers do not devote much time to
searching for the best financing package. This is a big mistake.
When shopping for a mortgage, it is important to get quotes from
several lenders and carefully review their offers. Those who are
eager to buy a home make the mistake of accepting the first
offer. However, comparing mortgage rates, terms, and services
may save you thousands, and in effect lower your mortgage

Apply for Loan with a Sub Prime Lender

Many financial institutions specialize in home mortgage loans.
These include banks, mortgage companies, credit unions, etc. If
you have good credit, you may be able to obtain a low rate
mortgage using these financial institutions. However, if you
have bad credit, these lenders may charge you additional fees
and an extremely high rate. Because of your bad credit status,
you are more likely to default on the mortgage. Thus, lenders
increase the interest rate. This allows them to recoup their
money sooner.

If you were to acquire a loan using a sub prime lender, your
interest rate may be comparable to current market rates. You can
expect to pay about one or two points higher than a person with
great credit, however, you avoid paying an interest rate three
points or more above current rates.

Working with an online mortgage broker is the best way to
locate a reputable sub prime lender. Based on information
provided on your application, brokers will match you with a
lender who specializes in mortgages that fit your circumstances.

About The Author: Visit ABC Loan Guide for advice about View
all of our

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Things To Avoid When Getting Your New Car And Auto Loan

Sunday, August 5th, 2007

Buying that new car at the dealers can often be filled with a
number of mistakes that tip off the car salesman as to the
ignorance of the buyer. He or she will often then proceed to
take advantage of unsuspecting customers (victims). By being
informed, though, as to things that should be avoided, you can
come away knowing that you got the deal on your car loan that
you wanted. Here are some things you want to avoid.

1. Dressing Up For Car Shopping

If you come into the car dealership with a lot of fancy
clothes, jewelry and gold, you really can forget about being
offered a good deal. They certainly will look for clues as to
what kind of deals to offer their clients, and will gear the
deal to what they perceive the people can afford. Also, if you
drive in with a Porsche – expect to pay a higher price than
others on your next car.

2. Buying At End Of Season

Every year, when it comes time for the new cars to arrive, all
the older models are reduced in order to make room for the new
ones. Sometimes, however, the dealer may not advertise the
reduced prices in order to see if there is someone who will walk
in and buy it at the original price. Sure enough, there often
will be somebody who has not done some homework and found out
that the same model was reduced $6,000 a month earlier. Or,
possibly, worse yet, he or she could have bought the new model
for just $1,000 more.

3. Show Too Much Emotion Over A Car You Like

If you give the impression that you really love a certain car
and must have it now type of approach, the salesman will play on
this. He or she knows that your emotions will lead you to buy it
– even if the price is not quite right. This means they will
most likely not be as flexible with their offers as you want
them to be.

4. Don’t Be In A Hurry

Giving the impression that you are in a hurry tells the
salesperson that you may not have time to think things through.
This will encourage them to aim high and not give you the deal
you would like to have. Instead, you want to give the salesman
the impression you are not in a hurry, and this will force them
to make their best offer before you walk out the door.

5. Finance Through The Car Dealer

This could be a serious mistake because – in many cases – you
could get better financial terms by getting preapproved for a
car loan. Dealers are sometimes notorious for adding charges, or
making a bait and switch auto loan which gives you higher terms
than what you initially thought you were getting.

6. Failing To Research The Car’s Value Before You Buy

Dealers often post high prices because they know that most
people like to negotiate. This means that if you pay the initial
offer, that you are giving them more than even they had hoped
for. This leaves room for serious negotiation, but you need to
know what the car is really going for on the market to be able
to make the best deals.

A little homework on your part will enable you to be certain
that you are prepared to do business. It will also help you get
the car and the auto loan deal you wanted and will be proud of –
proud enough to tell your friends and family.

About The Author: Joe Kenny writes for the UK personal finance
site and also for US

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What Happens When You Default on your Student Loans? – part 4/4

Sunday, August 5th, 2007

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or in print, free of charge, as long as the bylines are
included. A courtesy copy of your publication would be
appreciated – send to

Title: What Happens When You Default on your Student Loans? – part 4/4
Word Count: 565
Author: Carl Willoughby
Category: Finance & Investment
Article URL:

The article is preformatted to 60CPL.

What Happens When You Default on your Student Loans? – part 4/4
I ignored (didn’t pay) my student loan for years – many
years. This was back in the old days (20 years ago) before
the government was so efficient at collecting their (your)
money. Nothing much happened.

OK, so one day years later, they found my bank account and
froze it. Cost me a few hundred dollars. I’ll survive.

And then, they started taking my income tax return money.
Damn! That hurt. But Life goes on… Life is good, All is

But then one day, years later. Big Brother (your Uncle Sam)

I had learned not to keep too much money in the bank
(didn’t have much anyway).

And I learned not to expect any money back from income
taxes. I was OK with that.

But I was totally unprepared for what Big Brother did next.
He blind sided me=85

One day I go to cash my paycheck, and I noticed “Hey, my
check is mighty small this week” What happened?

I look closely at my pay stub. The number of hours are
correct… the rate is correct. Hey, what’s this=85

Wage Attachment. 10% of the gross. 10% OF THE GROSS, not

10% of the freakin’ gross! Damn!

10% of the gross taken off the top. Before you get your

10% of the gross gone=85 Every Week=85

No explanation, no one to complain to. No supervisor to
override. Your money is gone.

10% GONE. It doesn’t matter that you were barely scrapping
by in life every week, living paycheck to check.

Now you live with 10% less. Every week. It sucks!

PLUS, they still take your income tax refund. No wonder
they call it a re fund becaues they are Re Funding their
own pockets with your money.

There’s nothing you can do about it. So I learned to live
on 10% less for many years.

One day I finally had the good fortune to get a better
paying job. Better job, better pay and=85

Best of all – the wage attachment stopped. Hurray!

Or so I thought=85 Life is good. Life goes on. I pay my bills.

Years later, on Friday the 13th, it happened. “Big Brother
Returned Again”.

One miserable deja vu day the check was small. I check the
paystub. Number of hours are correct… the rate is correct=85

There it was on the pay stub again=85 Wage attachment. 10% of
the gross.

`Son of a bitch’ found me again. Damn it, damn it, damn it!

You can’t win! You can’t hide!

Big Brother will find you. It might take weeks. It might
take months. In my case it took many, many years=85 Decades!

But Big Brother will hunt you down and find you. You can’t
hide forever! And guess what?

Big Brother has Increased the wage attachment withholdings
to 15% of the gross.

How much does that hurt?

As an example, let’s say you were grossing $1,000 per week.
You would pay about $350 in taxes leaving you with $650.

They will take 15% of the $1,000 which is $150 leaving you
with only $500.

HALF of your paycheck is GONE!

You just took a $150 a week pay cut. And if you make less
than $1,000 it hurts even more.

AND they still take your income tax return!

Trust me on this. You DON’T want this to happen to YOU! Pay
your student loans on time.

About the Author:

Carl Willoughby has worked as a Licensed Registered
Representaive for the Prudential Insurance Company, a
Computer Programmer for the New England Telephone Company,
and a Computer Sales Consultant for SEARS. He is
self-employed as an Internet Marketing Consultant.

Payday Loan And Cash Advance Applications

Saturday, August 4th, 2007

Payday loans can be found just about anywhere. They go by
different names, but are really the same thing. Most towns have
them, and you probably know that Internet advertising has a lot
of ads about them. You may have wondered, though, if you should
ever need one, just what may be involved. Here is what you need
to know about payday loans.

One of the best features about a payday loan is that just about
anyone that makes more than $1,500 each month from your
employment can qualify. Some will only require you to make
$1,000 per month, but that may also mean a smaller loan, too.
Besides that, you will need to have worked there for about six
months, and then you really should have no problem getting a
payday loan.

You do not need to be concerned about your credit score,
either. They will not even check it. So you can have any kind of
credit problem and it will not effect your ability to get your
payday loan.

The way it works is this – you will need a checking account so
that they can deposit your money directly into it. This way it
offers them some protection, so they will require it. Also, when
you apply, you will need to write a check to them for the amount
of the loan, plus the interest. It will need to be postdated to
when the loan repayment is due, which will be in about two
weeks. You could sign a statement that will allow them to take
it right out of your checking account on the day it is due.

The amount of money that you can get will usually be somewhere
be around $1,500 max. Your first payday loan, however, will be
limited to around $400, till you prove you will pay when it is
due. Then, this amount will be raised with each one until you
are allowed to get the full amount possible.

On the day that the loan is to be paid, all you need to do is
to go to the lender and pay for it by cash, if you want, and
they will give you the check back. Or, if you do nothing, then
the check that you approved will simply be put through your
bank, and the money withdraw.

The interest on a payday loan will be high. It does seem to be
coming down some, but you can expect it to be much higher than a
regular loan, and in many cases, much higher than that of a
credit card. It will usually be anywhere between 15 and 30%.

A payday loan can also be rolled over. By paying the interest
on the date that the loan is due, you can roll the loan over
until the next payday (usually two weeks). This does mean that
you will be charged a duplicate interest rate, though, so you
would not want to do it unless absolutely necessary.

About The Author: Joe Kenny writes for the UK personal finance
site and also for US

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Examining Differences between Home Equity Loans & A Line of Credit

Saturday, August 4th, 2007

You have permission to publish this article electronically
or in print, free of charge, as long as the bylines are
included. A courtesy copy of your publication would be
appreciated – send to

Title: Examining Differences between Home Equity Loans & A Line of Credit
Word Count: 692
Author: Brian Ankner
Category: Finance & Investment
Article URL:

The article is preformatted to 60CPL.

Examining Differences between Home Equity Loans & A Line of Credit
As of lately, obtaining cash from one’s home has never been
simpler for homeowners. With the low interest rates over
the last few years, everyone that wanted to refinance has
done so leaving the lending market semi- stagnant.

At this point, lenders are anxious to loan to anyone that
barely meets their criteria. Knowing what type of loan that
suits your situation best is very important before you feed
yourself to the “loan lions”!

There has been a recent flood of companies offering home
equity loans and lines of credit. To make Home repairs or
put on additions, more and more Americans are looking
toward lines of home equity credit rather than a
traditional home equity loan(also known as a second

Americans need to consider multiple things prior to
utilizing either of the above two financing products.

Home equity lines of credit usually are appropriate for
people who need a lower beginning rate and availability to
money at unpredictable times. A home equity line is also
good if you are unsure what the project will cost.

Many homeowners are doing the contracting themselves. In
this case a home equity line of credit is best as you
simply pay for the project in an ongoing basis until
completion, thus borrowing only what is needed and not
coming up short due to unforeseen overages.

Home equity loans are more appropriate for those who need
specific amounts of cash with payment stability.

The biggest difference between these loans is the method in
which you receive your money.

Using a home equity loan, you receive the whole amount of
money at closing.

Using a home equity line of credit, one can borrow cash
when needed, up to a pre-determined amount of credit.

See the following comparison for additional details.

(a) Loan Funds Availability: Home Equity Line of Credit –
Borrow money when needed. You can borrow up to the stated
credit limit. When you pay down principal it is added back
onto the balance of your credit line to be used later.

Home Equity Loan – Receive entire loan amount at closing in
a lump sum. You can not reuse this loan amount after
principal is paid back.

(b) Interest Rate: Home Equity Line of Credit – Variable
rate. Beyond the first monthly billing cycle, your
interest rate is determined monthly, usually determined by
the prime rate, when posted in The Wall Street Journal, in
addition to a operational margin.

Home Equity Loan – Fixed rate, Interest and payment stays
the same.

(c) Payment Structure: Home Equity Line of Credit – Monthly
payments vary with interest rate and amount of principal
which has been borrowed. These loans have a draw period,
usually of 5 or 10 years, during this time you have the
option to pay only the interest, however beyond the draw
period you must repay the principal and interest to pay
down the loan within the remaining years.

Home Equity Loan – Interest and principal payment stay the
same during the loan term.

(d) Loan Advances: Home Equity Line of Credit – Simply
write a bank draft for $250.00 or more.

Home Equity Loan – Entire amount is received at closing.

(e) Rate Advantages: Home Equity Line of Credit – Less
interest rates than your unsecured credit lines such as
credit cards.

Home Equity Loan – Lower payment options are available due
to a variety of terms.

(f) Tax Advantages(Ask your tax advisor): The interest on
both types of loans may be 100% deductible!

(g) Other Advantages: Home Equity Line of Credit –
Appropriate emergency fund for unexpected emergencies or
expenses. Can incorporate multiple projects at one time.

Home Equity Loan – Single use, less temptation to borrow
more by just writing a check. Stable loan with a fixed
rate, fixed payment and easier to budget for.

Our intention with this report was to clear up the
confusion between the two loans. Always be sure to do your
due diligence before you apply for any type of loan. Make
sure you are well informed before seeking a lender. I know
it’s hard to believe but not all lenders will be honest and
upfront with the finer details of the loan you seek!

About the Author:

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