May 26, 2011
May 26, 2011 by admin
May has been a great month for the mortgage market as long term interest rates have moves substantially lower this month following a dip in bond yields. The ten year treasury bond move below 3.1 this week, over seventy basis points off of its high levels of the year. The correlation to fixed mortgage rates has moved fixed mortgage rates below four and a half percent and into 2011 low levels. Fixed rates for both fifteen and thirty year loan terms have improved greatly in pricing, offering consumers a great window into home purchases this month. Oil prices will remain a lingering concern, but have dropped off of their high levels and the softness with the U.S. economy will likely keep interest rates near current levels for the balance of 2011.
Understanding Secured And Unsecured Personal Loans
May 26, 2011 by admin
A personal loan is the process by which an individual borrows money from a bank or other financial institution. A commercial loan is the same process except the borrower in this instance is a business entity. Unsecured and secured loans can be availed of by both individual and commercial borrowers.
What’s The Difference Between Secured and Unsecured Personal Loans?
A secured loan is one by which the financier (usually a bank) is pledged a particular asset from the borrower that they can reclaim legally should the borrower default on their payments. This asset is commonly referred to as the collateral. An unsecured loan on the other hand, is granted to borrowers based on their credit standing and current ability to pay. Because an unsecured loan gets least priority when it comes to claiming assets from individuals or businesses that have declared bankruptcy or defaulted on their payments, this is considered to be a higher risk than secured loans.
Types Of Secured Loans
A mortgage is one of the most common secured personal loans in the market today. This type of loan is used to purchase a house wherein the property serves as collateral for the loan. This means that if the borrower defaults on their payments, the bank can legally foreclose the house and resell it to recover the cost of the loan. Automobile personal loans are also one of the most popular types being offered. There are also two types of this loan; the direct and indirect auto loans. The direct method is when the bank grants the loan directly to the consumer. The indirect auto loan is when a car dealership acts as an intermediary between the bank and the borrower. Both new and used cars can be used as collateral for auto loans and as is the case with mortgages, defaulting on payments will result in the bank repossessing the vehicle to cover the outstanding balance.
Types of Unsecured Loans
For unsecured personal loans, there are a few options available. A credit card is a perfect example of an unsecured loan. There are two ways for you to utilize this, the first is by through normal credit card usage (in essence you are using it to pay for items that you cannot readily pay for), this is especially true if you do not pay your balances in full. Your monthly minimum payments will work similarly to the way a loan repayment is structured except that instead of having fixed payments that will regularly chip away at your outstanding balance, your debt will keep increasing. You can also avail of cash advances through your credit card with fixed payment terms. For those who need only to borrow a small amount, cash advances or payday loans are recommended since they do not tempt you to borrow more than you can afford to pay back.
Credit Cards with perks for traveling gaining popularity again
May 20, 2011 by admin
Travel Reward Credit Cards
Among reward credit card, travel reward cards are the most on-demand cards because they offer amazing benefits on travel, especially airline travel. You can redeem the points that you collect on airline usage and get a heavy discount or even free ticket on your next trip. But then not all travel reward credit cards are created equal. Some may offer a lot of attractive benefits, while others may be just exaggerating.. So here are tips to find out the best travel reward credit card for you:
1. What are you looking for in a travel reward card? Find out what kind of travel benefits are you looking for? Airline miles, discounts of hotels and accommodation, car rental rewards? Will you be using these rewards for business or pleasure? Do you intend to use these rewards quickly or collect them and use it for a bigger benefit later? All these factors can shape your decision on taking a travel reward card. Make a list and then find out if what you are looking for, is available at a good cost (low annual fees and less interest rate) with various credit card companies and sign up for the one that offers travel reward cards that fit your requirements.
2. Fees on travel reward credit cards: Find out the fees that are offered on the travel cards. Check the annual fees, the interest rates, the late fees, the over-the-limit fees. Find out the highest credit limit on these cards. Find out the feedback on these travel reward cards from people you know and other anonymous people online.
3. Research more on the rewards: Find out information on the rewards that are offered, how easy it is to avail them and redeem them for benefits like airmiles. Are there any restrictions, exclusions or disclaimers? Find out when the points expire and if there are any special restrictions which reduce your ability to use the points. Find out the redemption process that is to be followed and if there are any blackout dates.
4. Go by the merchant that you frequently use: Find out which airline you frequently use and then look for a credit card that offer airmiles for that airliner. Also consider the service, the cost and company policy.
5. Go through the account statements to find out if travel credit is mentioned: Find out if the credits are posted in your account; there are some travel rewards programs that permit you to ask for credit for past travel up to 90 days after travel.
6. Stick to one brand: Choose only one brand and stick to it for a long time, because you will be able to build points faster. Also, only a few travel rewards programs actually allow you to transfer across brands.
7. Look for incentive programs: Look out for incentive programs on your reward program website because they can happen many times a year. These incentive programs can also help you earn double or triple points on certain occasions.
Effective Tips for Saving towards Retirement
May 16, 2011 by admin
Looking back on the old days, a dollar seemed to have a much higher value compared to the present. People work in order to earn money and suffice their needs and wants. If you are wise enough, you will save up for rainy days and at the same time, make some wise investments so that your money (and its value) will grow. Planning for the future and your family’s future is probably one of the wisest decisions you can ever make.
You must come up with a retirement plan while you are still in the best of health to work and generate income. You are not the only one who will solely benefit on your retirement earnings but your family too. And just think of the idea of receiving earnings even when you are no longer working. This is the beauty of saving money towards retirement.
Set Aside a Portion of Your Income for Retirement Savings
The common question is “How much should be saved for retirement?†Ideally, fifteen percent should go to your retirement savings every month which may seem like a huge percentage, but your only consolation is to think of the benefits you will receive once you have retired and finally stopped working. That is when you can say to yourself that money saved on that aspect is all worth it. You may need to get the hand of it because when you are still starting, that sure is a huge slash on your monthly earnings.
Set-Up an IRA
Maximize your privileges and benefits as a working employee by learning the various savings programs that you can avail of. One of these is setting up an IRA (individual retirement account), a personal savings account specifically for retirement savings purposes. You can start less but if you can reach about $5000 annually for this account, much better. Moreover, IRAs provide you with tax benefits as an employee.
Check Your Company’s Retirement Plans for its Employees
Many companies offer a retirement benefits plan for its employees as one of the employee privileges. You can check with your current employer for this benefit and take advantage of it. In most cases, employers offer this privilege to its workers who have rendered service for a specific number of years with the company.
Make Use of Your Social Security Benefits
Every working employee, even the self-employed, has social security benefits. Before your retirement age, you are supposed to get around 40% of your earnings from Social Security. You can make good use of this money for your retirement savings.
May 12, 2011
May 12, 2011 by admin
The stock market rallied in a day that looked much like a roller coaster ride. The market swung nearly 180 points with intraday trading and finished the session up almost sixty points. The rebound in equities was not welcome news to the mortgage market which has been in the news this week with mortgage rates reaching their low levels for 2011. Bond yields have dropped over sixty basis points this year, down under 3.2 % this week, before edging up slightly today. The dip in yields have assisted in bringing long term rates lower. National mortgage lenders are promoting the advantage of refinancing into a fifteen year loan term under four percent, and thirty year loan rates are in the 4.6% range with most lenders. The drop in rates will be good for refinance activity, but much remains to be seen if there is any carryover effect to the home sales.
Oil prices continue to a dominant source of economic discussion. With a sharp pullback in oil prices bringing the per barrel cost under $100, there is a growing disconnect with gas prices which are still lingering above $4 per gallon. Today, executives from the countries largest oil companies were trying to defend the benefits of billions of dollars in tax breaks before congress, growing concerns over these companies monopoly and staggering profits on the back of consumers continues to grow and will likely result in changes within the federal tax codes.
Refinancing Your Car Can Greatly Increase Your Cash Flow
May 11, 2011 by admin
When you have been busy finding ways to refinance your home, why not consider an auto refinancing instead? You are able to save more when you choose to refinance your car. Also, car refinancing is less hassle and entails less work on your part. Mortgage or home refinancing requires appraisal while car refinancing does not. Lastly, fees and charges are minimal compared to home refinancing.
However, not all car owners can simply opt for refinancing. How will you be able to identify that you are in need of car refinance? Here are a few common situations for you to check.
Low Interest Rates
One main reason for people to take advantage of car refinancing is the drop on interest rates. Who would not want to be paying a lesser interest rate on their vehicles every month? This is simply the most attractive benefit of getting into car refinance. With lesser interest rates, you can definitely save up on your money.
Improved Credit Score
In order to take advantage of a lesser auto loan interest rate, make sure that you maintain a good credit standing. Applying for car refinancing is a lot easier with an outstanding credit report. This is because loan agencies are inclined to offer lower rates if they could see that you are an on-time payer of your monthly dues.
Expensive Interest Rate upon Car Purchase
Just when you thought you got the best deal on your car when you first purchased it, assess it again. You might just have missed other companies offering even lower interest rates. Cars purchased from dealer-sourced loan companies tend to price higher rates than that of a consumer loan simply because the car purchase does not have a good idea of how the rates are being calculated. Direct car dealers tend to place higher interest rates because the extra goes to them and their add-ons such as rust proofing and extended warranty. Try getting your car refinanced and find out how much you can save with an even better deal from the lender.
Need to Cut Down on Expenses
As mentioned above, the main purpose of car refinancing is to help car owners save on money by getting a reduced interest rate on their monthly car payment. If you feel the need to fix your tight finances, work on car refinancing instead of mortgage refinance. Normally, interest rate decreases because the loan term for your car is also extended.
Expiring Car LeaseIf you are running a vehicle that is under a leasing agreement and is about to expire soon, your next best option is to purchase the car. If you have no ready cash to buy it, car refinancing is simply the answer to your needs.
Balance Transfer Promotions Regaining Their Popularity
May 9, 2011 by admin
How to find out the best balance transfer promotions
Maintaining large balance on a credit card can be quite a costly affair with high interest fees adding more salt to the wounds. This is why many credit card companies offer balance transfer cards to increase their customer strength by allowing you to shift this balance to their cards and pay less on your outstanding balance. Balance transfer credit cards can be good because your debt burden is reduced and you are able to pay off the outstanding amount at low interest rates
1. Balance transfer with zero percent: When you get an offer, it can be irresistible. What you are enjoying is debt-free period at zero percent. Though it is flattering, you should go through the fine print, which says that the zero percent interest rate may be just for an introductory period, after which the interest rate or the APR may be higher than what your present card has. So, weigh your options, apart from the benefit that you get through balance transfers, find out whether the escalation in the interest rate after the interest-free period is justified.
2. Go for balance transfers with low interest rate in the introductory period: Experience shows that it is better to go for balance transfers with low interest in the introductory period rather than the one with zero percent because the spike in the interest rate after the introductory period may be lesser
3. Find out the annual fees of balance transfer cards: Find out what the annual fees of these cards; they may be on the higher side to compensate for the benefits that are offered at a low price to you.
4. Know that you still have to pay, on time: Know that your credit balance does not disappear; it still remains even if there is reduced interest rate. You have to pay the outstanding on time because if you delay; then the interest rate may be added on your new card at a higher rate after the introductory promotional period is over.
5. Use the balance transfer card for the purpose intended: If you have taken the card for balance transfer, act judiciously and pay off the balance. Do not just start spending this credit card because the interest rate may be low on balance transfers, and not on purchases and withdrawing cash from the ATM.
6. Understand how payment is made: Whenever you pay up the balance, the structure is such that the balance transfer payment is done first, then credit purchases and then any payment towards the loan that you have taken in the form of cash.
Before you take up balance transfer offers, get a clear understanding of the promotional period and how the interest rates fluctute so your short term savings does not end up with a long term rate in exccess of 20%, costing you hundreds of dollars in excess interest charges.
Obtaining the Best Rates on Banking and CD accounts
May 6, 2011 by admin
Banks provide many types of interest bearing accounts like checking, savings and CDs (Certificates of Deposit). CDs are accounts that need money to be ‘locked in’ for a certain amount of period. In most cases, putting your money in simple savings account or checking account will yield low interest, but if you put the same money in a CD, you can benefit from high interest rates. Let us find out how to get the best interest rates for banking and CD accounts.
If you are putting your money in a CD account, you should know that the longer your money is locked in the account; the higher is your interest reward. This means, when the money is locked in the bank for a longer time, the bank has more flexibility to use your money for various investments, the profits of which can be shared with you, in the form of interest. The current interest rate is also a determining factor. Bank CD rates are set competitively; this means they know that you have a lot of options to go for apart from just banks; so they try to give you the best rates.
As a customer, you should look at the interest rates. If they rise, it means that the CD rates also rise. The other factors also have a bearing on the bank CD rates. For instance, a bank may voluntarily offer slightly higher interest rates to rise above the competition. They know that if the customer likes the high interest rates; they bring in more assets as well. This is a long-term perspective that they have, which can be mutually beneficial to you as well.
In order to get the best bank CD rates, you have to shop around. Look up the Internet, the newspaper, check your mailers and banner ads. Find out with your local bank about any good rates on the CDs being offered. Having said that, it is better to look for a bank CD rate, if you want to keep your money locked in for less than 5 years; because if you want to keep it in for more than that period; then there are better instruments for long-term investments.
You can also go to some of the reputed financial sites or banking sites to find out the prevailing bank rates in terms of checking account, saving account and CD. You can base your decision according to the market rates that are offered. Also, there are aggregator sites that show you interest rates of various banks at one place; which makes the decision making process much simpler. Local banks also offer bonuses for new accounts, which can be even more helpful to boost your savings.
May 4, 2011
May 4, 2011 by admin
May is not following the strong market rally that April provided and equities are struggling for thei third straight day today as investors are concerned with the latest economic report out of the manufacturing industry. The ISM report today showed weakness in manufacturing, leading to an early morning dip in the DOW of close to 100 points. The sell off with equities has helped bring oil prices back under $110 per gallon, off of high levels of $114 just this week. Gas prices have jumped above $ 4 nationally and will begin to pressure consumers and businesses to make tough economic choices. The rising price in commodities will certainly impact more economic reports this month and investors will pay close attention to CPI and consumer confidence reports due out this month.
The pullback with stocks has benefitted bond yields as they are now under 3.3% on ten year treasuries and closing in on 3.2%. This pullback has helped to lower fixed mortgage rates under 4.8% with most national mortgage lenders for thirty year loan terms and could open the door for rates to be available under 4% for fifteen year loan products for consumers who are willing to invest in loan discount points to further bring their rates down.
Practical Money Saving Tips for Tough Economic Times
May 4, 2011 by admin
People all across the United States are now feeling far less wealthy than ever before as the economy continues to falter. With gas prices zooming past $4 per gallon, monthly budgets are going to become more strained then ever before.
Here are some practical money-saving suggestions you can consider doing that can help you save some much-needed cash each month.
Consider combining your cable, internet and telephone services. Many companies today are offering combined services that not only cost less, but which offers the convenience of a single bill. Called ‘Triple Play Packages’ these combined service deals can save you a bundle each month. Also consider downgrading your internet speed. This alone can save you about $20 a month and if you have a newer computer, you will most likely not notice the difference.
A good credit score can save you thousands of dollars in interest on a mortgage, a vehicle loan, educational loan and on credit cards. Obtain your free FICO score and then improve your score so that your interest payments can be lowered.
If you purchase a product that offers a mail-in rebate, send in the form the same day you buy the item. Most people never send in rebate offers, which is too bad because some of them are rather hefty. Be sure to make a note to yourself as to the day you sent the form in so that you can follow up with the rebate company if your check does not arrive when it should.
The next time you need a new cell phone, buy it online. There are some great deals on phones on sites such as Amazon and Ebay. Consider buying a refurbished phone as they are just as good as new mobile phones but at greatly reduced prices. Also, if you do not use all of the functions on the cell phone you have, downgrade to a simpler phone as smartphones cost a small fortune.
Considering buying your next car online. There are car dealers located all across the US and you can find them easily online. Send email requests to dealers, asking for their best prices. Even with the cost of having a car delivered, you can still save a lot of money this way as often you can find better prices in another state over those charged locally.
Finally, think about getting rid of your home telephone. This is a very good way to save money and more and more households are now land-line free. If you are comfortable relying on your cell phone there really is no reason to keep the land line.