Capehart Blog » loans

No-Fee Mortgages Are Not Necessarily a Bargain

admin — Fri, 10 Dec 2010 07:57:30 +0000

In order to be competitive, a number of lenders are now advertising so-called “no fee” mortgages. According to commercials from a number of mortgage companies, you can obtain a home loan where you only pay the loan’s interest; there are no additional costs at closing. Can you really save money by applying for a no fee mortgage?

As usual with this sort of advertising, the answer is “perhaps, or perhaps not.” A mortgage company isn’t going to simply drop charges that can amount to as much as 3%-5% of the amount borrowed. Any lender that simply did away with a source of revenue would quickly go out of business, as those fees contribute to their bottom line.

How do these mortgages work? The lender is going to charge you a higher rate of interest than a mortgage company that itemizes closing fees will. Their profit must originate somewhere; it’s going to come from charging you more to borrow the money. That’s not necessarily bad; it means that they are earning their money in a different way. The increased rate of interest may make the loan more attractive to buyers on the secondary market. The company may make some additional money by re-selling your mortgage to another company later.

What does this mean for you, the buyer? As with any loans or anything else that you might buy, you need to shop around before applying for a loan. The only way to tell who is providing a bargain is to compare the costs of all the lenders and crunch some numbers. Only when you examine everything, including how much in total you will pay over the life of the loan, will you be able to tell who is offering the lowest cost. Each lender is going to have different ways of making their profits; some will charge higher interest rates, others will add more fees at closing.

Is the promotion a financial scam? No, but it might be rather misleading. The companies, via their advertising, would like you to believe that you are paying less, as suggesting that there are no closing costs might lead you to believe that you are paying less money. You aren’t actually paying less money, but it makes for good advertising. Whenever you think about taking out a home loan, you should assess all of the estimates from all of the mortgage companies you talk to so that you might find the deal that best meets your needs. Clever consumers always know to be suspicious when a promotion seems too good to be true.

How Debt Consolidation Works

admin — Fri, 25 Jun 2010 10:00:46 +0000

Most people who are dealing with debt have heard of debt consolidation, but they may not know how it works. This type of debt payoff plan isn’t a quick solution to pay off debt, and it might take you just as long to get rid of all your debt.

Debt consolidation uses one huge loan to pay off all your smaller loans, which can lower both your interest rate and your monthly payments.

With this approach, you make one payment each month instead of sending several different payments at different times each month, like you do with your current debts. Instead of all these loans with their separate interest payments and lengths, you can end up with one loan from a single company. So, instead of having many smaller debts, you have one big debt.

Here are a few of the advantages of this approach:
You’ll probably get a lower overall interest rate. You only have to make one payment each month instead of several payments to different companies. You only have to deal with one creditor if you run into some financial trouble. You’ll simplify your budget and reduce the number of cheques you have to write each month. Here are a few of the disadvantages of this approach:
You may end up paying more interest over time because the lower monthly payment will take longer to pay off. Saving money each month could end up paying more money over time. You could end up with a variable interest rate, which could rise over time. If this happens, your monthly payments will go up, and you may get less manageable payments in a few months or years. Using credit cards to consolidate debt

Credit cards can actually be consolidated using other credit cards instead of a separate loan. Instead of having debt on several different cards, you can combine all your separate debts onto one card.

If you hear about a ‘balance transfer’, this is what the credit card companies will be talking about. Basically, you can take the balance from several different credit cards and transfer them to a single card. You probably get ‘balance transfer’ offers once in a while from competing credit card companies if you already have one or more cards.

Only having to make one credit card payment each month can streamline your budget. You’ll be able to check out just how much credit card debt you have more easily. Plus, if you do this right, you’ll also get a better interest rate.

If you’re considering a balance transfer, be sure to know what you’re getting by reading the small print. Usually these offers will come with a very low introductory interest rate, which is probably a lot lower than what you’re paying on cards you’ve had for a while. Usually this interest rate will only hold for a certain number of months, and after that, the credit card company can raise the rate as much as they please.

If you can pay off the balances that you transfer before the rates go up, then a balance transfer is a great way to consolidate your credit card debt. However, don’t keep switching the debt around. Most banks will penalize you for this, and it can also harm your credit rating.

Does Debt Consolidation Ruin Credit Scores?

admin — Wed, 09 Jun 2010 22:42:47 +0000

Debt consolidation will not ruin your credit score. As a matter of fact, it will likely even help your credit. Okay, there is a situation where it could ruin your credit score. Just like any other debt you have ever had, if you don’t make payments on your consolidation loan, it can hurt your credit. Getting this type of loan in and of itself, however, will not ruin your credit.

When you take out a loan to consolidate your debts, the creditors included in the loan will be paid in full. This will actually help your credit because these accounts will show as paid accounts. Any creditor that shows as a paid off account, regardless of whether it was previously 30, 60, or 90 days or more late, will have a positive effect on your score.

While your credit may not have been perfect prior to any consolidation loan, the way you manage your payments after getting the loan will have a direct effect on your credit score. Accounts reported as 30 days late will bring down your score a little, but it is really the accounts that have been reported as 60 days or more that will have a greater impact. The longer the delinquency period, the worse a credit score will be. Any account that shows as more than 120 days late will likely result in a charge-off, which will have the worst effect on your credit.

Your previous late payments on any loans paid off by your consolidation loan will not automatically disappear. The late payments will still appear on your credit report and have a negative effect on your credit. However, the longer you pay your consolidation loan in a timely fashion without any late payments, the better your credit will become. This combined with the fact that your previous loans will now be shown as paid accounts will have a positive effect on your credit score.

As you can see, a debt consolidation loan will not ruin your credit score. What will ruin your credit score is late payments. Any time you miss a payment to a creditor, whether it is a loan that was used to consolidate your debts or any other creditor you have, it will negatively impact your credit. Conversely, any creditors that are paid on time, or paid in full prior to their maturity date, will have a positive impact on your credit score.

Debt Consolidation tips

admin — Tue, 13 Apr 2010 23:19:28 +0000

Do you have some issues with the debt consolidation? If so, this is the right article for you as I want to share debt consolidation tips with you. It is possible to get the best option, indeed.
First, why do you need debt consolidation? Perhaps for some people, debt consolidation is the only way to elude. And, mostly those people who need this loans id the low skilled and the lack educated ones. However, do you really know what advantages gained from debt consolidation?
You know, debt consolidation has low rates and also longer span. The second advantage is that it has side facilities and you can make your own plans of debt repayment. There are still more advantages you will get when you decide to take this loans.
In order to be success in taking debt consolidation, you should pick the best debt consolidation loan company. How to find the best company? First, you can check whether the company has been approved by BBB (better business bureau) or not. Be sure you move soon if the company do not have a good grade. Next, you should do research trough online to check which company there are. Also, you can obtain the recommendation or even the feedback from the previous customer of the company. You can compare them and pick one that is the best one.

Debt consolidation programs

admin — Mon, 23 Nov 2009 02:40:18 +0000

Nodebttoday.com is the website that focuses on helping people to get easy credit repair services, debt consolidation and credit card debt. They are also known to the general public in helping, improving, and providing advice in the face of credit debt. They also help people to get debt consolidation without risk. Some of the services they offer have been disclosed by this website are based on credit counseling services.

Nodebttoday.com is websites that offer the most advantageous debt consolidation programs to its customers. So, if you would like to improve your debt and credit score, or you want to repair credit history you’ve made in the past, you can ask for help to ‘Nodebttoday.com’ to settle the debt that you’ve created.

Since we’re all creatures that have a habit of debt, this will happen if you intend to do so, then now is how to pay your bills. You can not manage your financial, if you are not able to pay back the loan you will ever make. If you are experiencing debt problems, you can consolidate your debt immediately, and you should be concerned in the loans problem.

Many people are successful in removing the debt, as applicable to the consolidation of debt. People usually eliminate the problem of debt consolidation as soon as the outstanding debt. You can check Nodebttoday.com which is a good solution for debt relief.

How should society react to the problems of the poor?

Fri, 13 Nov 2009 03:15:34 +0000

There’s a darker side to America. It boasts it’s the land of the free. It claims it’s a level playing field and everyone can make it if they try hard enough. This myth of hard work always being rewarded with big bucks is dangerously misleading to the many who hope to improve their lot. Now add in the tenet that everyone should take responsibility for their own lives. This is the land of the individual, they claim. People should keep what they earn. Everything else is socialism and evil. Society should never help the weak and disadvantaged because it only encourages freeloading. As an example, you only have to look at the campaign against reform of the healthcare industry. Raise taxes on the rich to pay for healthcare for the poor is dragging the US into the same pit as Russia and all those other communist states.

So looking around the newspapers recently, there have been a number of editorials and articles attacking the loans offered to the low paid. If you think this was meant in defense of the low paid, think again. The general tone was to judge the disadvantaged members of society as feckless and inept. Apparently, it’s their fault they fall prey to the short-term loan industry charging extortionate rates of interest. If they were only more responsible and managed their resources better, they would be able to avoid falling into debt.

Well, these newspapers are edited by people who are well-paid and never have a financial emergency. Although the story always used to be that everyone was only ever one pay check from losing their homes, all this is forgotten when it comes to the unlucky and the low paid. Now, no-one responsible ever gets into trouble. All the best people are prudent and wise in the management of their affairs. This is the new myth. It’s a myth because it ignores the fact that the unlucky and the low paid are denied access to the usual banking system.

Instead of banks and the conventional finance companies being prepared to hold out a helping hand to those in trouble, they turn away everyone with a low credit score. There are loans and overdrafts available but they are reserved for the people who, for the most part, already have enough. That’s why the low paid are driven into the arms of the payday loan companies. If they were treated with some respect, as being just as capable of repaying a loan as anyone else, there would be no need for them to be sucked dry by the high interest rates charged for payday loans.

This is an opinion piece. It’s quite angry because too many people are denied respect and laid open to exploitation by others. Society should not wash its hands of these people. It’s not socialism to care about what happens to people when they are victimized. In this world, it’s there but for the grace of God that we all go. It only takes one real emergency and our own financial security is gone. Our one pay check is not enough and we find ourselves knocking on the door of a payday loan company.

Personal loans: what to consider

admin — Thu, 19 Mar 2009 15:41:35 +0000

1. Interests
It always offers a lower interest are the best. Most of the time, a lesser interest is accompanied by an association to other products (most of the time, insurance) that end up making it more expensive than other higher interest loans. “Fixed or variable? That depends on the time when we can return the capital. The lower, it is a fixed interest rate.

2. Offers
The best deals on loans are now on the Internet, its low cost promotion. We should not consider offer quick loans money with us a few requirements, short-term and high interest (which becomes 20%). The market average is at 10%.

It is preferable to seek the benefits in the absence of commissions, allowances (such as months of absence) and do not include prepayment penalties or arrears.

3. Amount
How much money do we need? Was that worth the contract a loan? For amounts under $ 3,000, you may request payroll advances at a much lower interest rate than a loan.

Credits: alert contracts

admin — Mon, 16 Feb 2009 15:14:36 +0000

It is a time of crisis: we all need money and we need it now. But, eye care, or pay tomorrow for the convenience of the moment. In matters of loans (and especially in a matter of banks and financial) must go to step lead, and armed with a magnifying glass to read the watermark to the paper it is printed the contract.

Over 75% of users of the Spanish bank acknowledged that the contracts do not read in its entirety, and signature loans whose terms, penalties and, above all, interest is not known. Something very serious, look where you look, is that at the failure of one or more monthly (or even to non-payment of insurance attached to a loan) can fall in legal costs, fines and even in foreclosures ( the new euphemism for auction from our house).

Again, the institutions that offer quick credit which bear the palm in this deceptive conditions or opaque, you ring up your phone and is informed that the longed to go on vacation loan has an interest only 1.84% APR. Wonderful, right?

Well, no: it is the monthly interest, which gives added more than 22% annual interest, which is what we really need to pay. This is warning the Federation Al-Andalus: careful with attractive offers. If they look good, something they have to hide.

Credit nursery: in defense of the family

admin — Sat, 24 Jan 2009 14:14:29 +0000

A new times, new credits, or that’s what we think here and Caja Navarra. First flight of the credit system of large investors, tightening the requirements for applying and granting loans within the banking system, and given the economic difficulties that begin to suffer very specific sectors of the Spanish population, the dealer must offer products that addressing the specific needs and who have conditions that make them affordable.

As is the case of Caja Navarra Day Care Credit, a credit to ten years for a maximum of 18 thousand euros, bearing interest below the market average, and used to finance the payment of childcare.

Child care credit is a financial tool especially designed for single parents: for parents or single mothers and single faced spending a day care to continue with their professional lives.

Credit is a sensitive and adaptable, which enables two-year grace period in which only interest is paid. An excellent story that shows that in terms of credit, support and businesses can go hand in hand.