September 21st, 2007
First time loans for home buyers can be …. (lowest mortgages in green valley)
Posted in Bad Credit Mortgages, Blogroll, Green Valley Home Equity Line, Green Valley On Line Mortgage by Admin
First time loans for home buyers can be costly if you are not aware of what you are looking for.
For many young couples purchasing their first home is a dream come true.
Resolved Question: How does home foreclosure work? (henderson loan vs line equity credit loan home)
Resolved Question: How does home foreclosure work?If you fail to make your mortgage payments, can the bank garnish your wages for the payments?Or do they just take repossession of the home and auction it off themselves?And if they just auction it and can’t sell it for enough to cover the remaining mortgage amount, can they …
When you work with a mortgage broker, he?. (las vegas requirements for mortgages)
When you work with a mortgage broker, he does the initial steps of the loan process: completing the application, obtaining your credit report, conducting the appraisal, verifying your employment, etc.
Resolved Question: can i be approved for a mortgage loan if i have bad credit but i make enough mone y to pay the home?
Voting Question: …
Debt: The Good, The Bad And The Ugly
An article of 750 words describing the different kinds of debt and how understanding debt can help you make better decisions when making purchases with credit.
Neither a borrower, nor a lender be, cautions Shakespeare in Hamlet. The reality is, most of us carry debt. From a money management standpoint, that is not necessarily bad. Sometimes debt is good. Sometimes its downright ugly. The key is to carry the right kind of debt, and not too much of it.
Most Certified Financial Planner practitioners recommend that no more than 10 to 15 percent of a persons take-home pay go to nonmortgage debt; that is debt thats paid to student loans, car loans, personal loans, credit cards and so on. Just as important is carrying the right kind of debt.
Good Debt Good debt is generally debt that can provide a long-term financial payoff. An educational loan, either for your children or perhaps career education for yourself, is a good example. The improved earning power from the education should more than pay back the cost of the loan.
Mortgage debt is another good debt. To begin with, few consumers can afford to pay cash for a home. Also, a mortgage is good debt in the sense that a home is considered an investment, as most homes will appreciate in value over time.
The bigger issue is whether homeowners should pay off their mortgage early if they can. Say you have a 30-year mortgage and you come into an inheritance that will allow you to pay it off. Or youre thinking of paying extra toward the principal each month, which can dramatically cut down the total interest you pay. Should you?
That depends. Lets assume you can reasonably expect to earn a higher return investing the extra money than the interest rate youre paying on your mortgage. Keep in mind that the tax break you get for a mortgage decreases its real cost to you. If you have an 8 percent mortgage and youre in the 28 percent income-tax bracket, youre really only paying 5.76 percent on the loan. You probably can reasonably invest your money over time for a higher return than that, though taxes might eat away some of the difference unless you put the money into a tax-deductible retirement plan or IRA. On the other hand, if youre paying a very high mortgage rate, paying down your mortgage may be the better place for your money (consider refinancing, too).
Car loans could fit into the good or bad debt category. Borrowing to buy a car that you need to get to work is usually justified. However, unlike most homes, most cars lose value over time, often quickly.
There is such a thing as too much good debt. Busting your budget by buying the most expensive home you can possibly afford or a high-end sports car to get to work generally isnt financially wise.
Bad Debt This tends to be short-term debt in which the loan lasts longer than the item you bought with the debt, and for which there is no financial payback. Most credit card debt falls into this category. People pay for everything from dinner to toys to clothing to vacations on their credit card and theyre still paying for them long after the vacation is done or the toy is broken. Also, credit card debt tends to be very expensive18 percent or more is common.
Loans for furniture, appliances, cars and other personal needs also can be fairly expensive, though usually not as high as credit cards. Save for these items, whenever possible, and pay for them in cash.
Ugly Debt Some people would lump credit cards in this category, and it is a toss up. But weve reserved this category for the really expensive debt that comes from whats commonly called fringe banking. This includes payday loans, unsolicited loans in the mail (take this check and cash it), interest on pawned items and furniture rental (where you end up paying a lot more than if youd simply borrowed from your credit card to buy the TV set). Interest rates for some of these loans can run 25 percent to 100 percent or more.
Living with minimal debt will help create more abundance in your life and is critical to financial success. As a rough rule of thumb, many planners recommend that people aggressively pay down any debt whose interest rate runs 10 percent or more. For rates lower than that, youll have to evaluate whether to pay off the debt or use the money for investments or to place the money in an emergency fund. When in doubt, check with your financial advisor.
About the Author
Cindy Diccianni is a Registered Nurse, a Certified Senior Advisor (CSA), a Registered Investment Advisor and a Registered Representative with Leigh Baldwin & Company member NASD and SIPC. She is affiliated with Ortner, OBrien & Ortner Advisory Group, Inc. and co-founder of Nurturing Your Success, Inc. Her passion is assisting clients in creating the financial freedom they dream of. Visit Cindy at www.nurturingyoursuccess.com, write to her at Cindy@nurturingyoursuccess.com or call her directly at (610) 251-9393 x206.
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