Fin Innov

Learn Your Loan Options for Obtaining a Mortgage

You may be asking how much is my house worth and thinking to get another mortgage. While there are tons of available financing options, it is essential to take time doing research with the basics of house financing. Doing this lets you save money and time in the process.

Being able to have good understanding of the market where your property or your prospective property is located and to whether it is offering incentives to lenders might mean additional financial advantages on your end. By taking closer look at your finances, you could be certain that you are acquiring mortgage that suits your needs the most. But among the plenty of choices that can be picked, how can you come up with your decision?

Conventional Loans

These are types of mortgages not guaranteed or insured by federal government. In most cases, they have fixed-rate. As a matter of fact, they’re among the hardest kinds of mortgages that a person can qualify for. It is primarily because of the stricter restrictions applied such as:

• Bigger down payment
• Higher credit score
• Lower income to debt ratio
• Possibility of private mortgage insurance

On the other hand, if you could qualify for traditional mortgage for instance, then they’re oftentimes less expensive compared to loans guaranteed by federal government.

These traditional loans are described either as nonconforming or conforming loans. In the latter, it is in compliance with the guidelines similar to loan limits that are set forth by GSEs or Government-Sponsored Enterprises. Such lenders normally buy as well as package these loans and selling them as a security on secondary market.

Loan Limit

For conventional loans though, the max loan limit available is 548,250 dollars. Though this figure may vary depending on the area, especially on high-cost locations.

FHA Loans

FHA or Federal Housing Administration is part of the US Department of Housing and Urban Development. It is providing different mortgage loan programs among Americans. FHA loans have lower down payment and is simpler to qualify than traditional loans. These loan types are perfect for first-time buyers because aside from the lower upfront loan cost as well as less stricter requirement, the down payment can be broken down to as low as 3.5 percent.

VA Loans

US Department of Veterans Affairs are guaranteeing loans. Though you should know that VA doesn’t make the loan themselves but they can guarantee mortgages that are made by qualified lenders. Such guarantees enable veterans to acquire home loans that have favorable terms.

FOREX vs. Stock Market: Which is Riskier?

Foreign Exchange or simply known as FOREX is simply the largest financial market worldwide. It is accessible only through various platforms online that are running 24/7. On the other hand, stocks are regulated heavily via physical exchanges such as NASDAQ or the New York Stock Exchange. These are traded only when there are open exchanges. Of course, each investment channel poses unique benefits and risks.

In stock market, this is where you would see well-known and large companies meet. So for example, you may have known a company that does debt collection for dental fees. Assuming that they are large enough, you can buy shares from them and be a part owner of that company through stock market brokers or platforms. But as what said, you need to be mindful about the risks associated with such investment.

Leverage Risk

FOREX for instance isn’t an investment in a manner of holding security medium to even as long-term profits compared to investors who are doing stocks. There are rare instances of large fluctuations among exchange rates. FOREX investors should take short-term leveraged position in an effort to magnify their potential gains.

Stock brokers on the other hand are allowing leverage ratio of 2 to 1 while FOREX platforms are allowing leverage ratio of as much as 50 to 1 or at times, 200 to 1 in other countries. Leveraging is executed by borrowing money from brokers and at times called as margin trading.

Country Risk

In terms of difficulty and riskiness, FOREX trading is “more” than stock market. Stock investors are using fundamentals of the stock of a company for forecasting its future prices. However, there are several other factors that may impact the value of the currency.

Few of these factors include the country’s gross domestic output or GDP, the consumer price index or CPI as well as current employment rate. Historically, it is the uncontrollable or unexpected events that most significantly affecting the exchange rates. Political situation, natural disaster or decision by the central bank of the country all influences the current exchange rate in the most unpredictable ways.

Stop-Loss Orders & Profit Limit Orders

Investors may make use of this method to lower risk exposure in both stocks and FOREX. These orders are closing out a position in the event that the price reached a set point. Thus, helping them to protect their investments and still make profits in the process.

Getting through with Delinquent Debt

There are instances in which people are so reckless with their money and invest without giving it much thought such as in cryptocurrency. Some jump into a crypto deal with the promise of it making them reach. In reality, before going into such investment, it is wise to identify the best Bitcoin exchange to avoid considerable loss in the long run.

When the borrower is all of a sudden can’t pay the amount loaned on time, that is when a debt is considered delinquent. When the payment is past due, the lenders are sending letters as well as emails and even calling borrowers to remind them. There are also banks that are informing the reporting bureaus of the situation.

Within a six months period, the financial institution will try to collect the debt in many different ways like using the following:

• Law firms
• Accountants
• Controllers and;
• Collection agencies

Assuming that you defaulted, delinquent debt is going to significantly affect your credit score which makes it harder to get approval in the future. Most of the lenders do hold debts for a span of six months and then, selling them to the collection agency.

Different Kinds of Delinquent Debt

There are several examples of delinquent debt and among it is the deficiency balances like real estate and installment contracts as well as auto loans. Other known examples are medical receivables, bad checks, credit card charge offs and student loans. The category of legal-related debt will include judgments and dismissed bankruptcies. Borrowers owe payments to private investigators, lawyers and even banks and all other financial institutions. There are various sources for bad checks like retail chains, financial establishments and food stores. Other known examples are insufficient funds and closed accounts.

Lastly, delinquent debt includes automobile loans and home equity. The money is owed to the finance companies, car lots, banks and retail stores.

How Severe a Delinquent Debt is?

According to research, it showed that around 8.8% to 10% of borrowers are holding credit cards that are categorized as delinquent. Some chose to file bankruptcy for protection. Clients who have low income level are actually likely to utilize delinquency.

At the same time, households that are facing financial distress have greater possibility of dealing with financial challenges in the long run.

What You should Expect?

In case that you’re couple of months behind, then your financial institution might report your account to credit bureaus. One way that you can prevent this from happening is by developing a repayment plan, which is entirely based on your situation. If you can’t keep up with your payments due to serious illness, divorce or job loss, then it is best to talk to the loan officer and discuss your situation. Perhaps, there are other alternatives that can be offered and settle the debt you incur.

Should You Use Loan Shark’s Services or stick with Payday Loans Instead?

You have probably heard of a loan shark, especially if you are in dire need of money. But what exactly are these entities? Basically, loan sharks is an entity or a person that is offering loans at ridiculously high rates and typically using threats or violence to collect debts. Generally, interests are higher than what is the established legal rate and normally, loan sharks are part of an organized crime group. It’s quite a mouthful but if you don’t want to see yourself dealing with these entities but in serious need of money, better go to credit loan instead.

How do Loan Sharks work?

Loan sharks may either be a professional network or an individual who offers loans at exorbitantly high rates of interests. They might be found across the internet, via personal networks or even under-banked neighborhoods. Funds of loan sharks are often from questionable sources and they are working for unregistered entities or personal businesses.

These loan sharks are not requiring any credit reports or background checks. Instead, they will be lending the applicant big amount of money with the intent of acquiring high interests in just a short period of time. Taking a loan from loan sharks can charge interest that is way above the normal rates.

So to give you an example, a loan shark may let you borrow 10,000 dollars with the provision that within a month, it’ll be paid doubled. These lenders might be calling on debt to be repaid at the requested time or use brute force to get the payments. In most instances, business dealings with loan sharks are under the table so as much as you can, seek alternatives.

Payday Loans or Loan Sharks?

There are payday lenders that might approach or be in the same level as loan sharks. But, the rates offered by these lenders are totally legal and thus, the interest rate will be at reasonable rates. Payday lenders can also grant exceptions, charge an annual interest rate that can reach up to 400 percent. They may be seen offering higher rates as a result of special provisions provided by the state’s government.

Payday lenders are actually legal type of high-interest lending that is offered to its borrowers. Typically, they’re registered and following the standard credit application procedures and requesting personal details to the applicant to perform a credit check. Usually, payday lenders are basing the offered principle against the credit profile and income of the borrower.

Tell-Tale Signs that You Need Assistance Financially

We know the difficulty of getting financial assistance. But this should not cast a shadow on your hope of getting one. In fact, there are many available resources if ever you needed emergency assistance. In this article, we are going to roughly outline few ways that you may do to bounce back from your financial predicament and have financial security via means of nonprofit programs, online fundraising and government assistance.

When You must Start considering Financial Help?

It may be difficult to accept the fact that you need financial help, but there are times that we may have to accept our defeat and seek assistance. At this very moment, some of you may not realize it yet but currently going through tough times in their life. Discussed below are signs or indications that you should better get financial help and mind you, these pieces of information came straight from experienced accountants and other professionals who know very well about money. Perhaps, you may want to pay a visit to to get additional information.

No Savings, No Emergency, No Anything

In the perfect world, we should have at least saved 6 months of our living expenses as an emergency fund. Well in reality, 40 percent of Americans do not even have savings that are enough to cover for a 400 dollar emergency according to Forbes.

The main channel that people do in avoiding taking loans or new debts is by establishing emergency fund that is good for 6 months or more. Without spare change saved in the bank, it is a financial crisis waiting to happen.

Making Ends meet with Credit Cards

Are you frequently using your credit cards to cover for day to day essentials similar to food, transportation and mortgage? If you do, then it is a clear indication that you should start reassessing your financial status.

Oftentimes Using Savings as Patch Up

In the event that you find it extremely difficult to grow savings or frequently using your savings to cover up for something, then you should reevaluate your budget and spending habits.

Afraid of the ever-growing Credit Card Bill

It is more than enough to demoralize and lose your morale just to know that you have mountain of debt behind you.

But it is worse when you are ignoring the situation and think of nothing to resolve the problem. As you see your balance statement keep on rising than decreasing, don’t run. Instead, you should face it with all your might and take the necessary action.

Secrets of Budgeting not Everyone will Let You Know

Every effective and successful financial plan all lies on proper budgeting. It does not matter if you are living your life from one paycheck to the next or blessed with 6-figure salary per year. What truly matters is that you know where your money is going. This is the true secret to handle your finances like a true professional. Come to think of it, property management company Atlanta and several other established businesses would not be able to be where they at right now if not with proper and thorough budgeting and financial planning.

Not what You initially Thought right?

Contrary to popular belief, budgeting is not entirely about restricting what and where you will be spending your money on and cut out the fun that life brings. Rather, it is focused more on the following points:

• How much money you have?
• Where does it go?
• Planning to allocate the funds to the most important aspects in your life

You are going to learn a lot of great things in this article when it comes to budgeting. If it’s something that you dreaded about, let us kick it out and start realigning your finances.

Fundamentals of Efficient Budgeting

By this time now, you might not know yet the significance of budgeting? Well on the surface, it may seem as if planning a budget is a daunting financial exercise. This is true particularly if you sense that your finances are in order.

However, you may be in shock at how valuable budgeting could be. Good and effective budgets help in keeping track of your spending and even uncover hidden problems with your money. With budgeting, it can free you from monetary issues that you don’t know how to resolve before while reaching your financial goals too.

The most difficult part of preparing a budget is actually the thought of it. It is similar to staring in a blank piece of paper and you have to write down something. And that is always where everyone is having a hard time. After allotting the time to prepare your budget, the next logical thing to do is to stick to it. Budgeting is like a diet – you have good intentions. But weeks or perhaps months, you begin to drift away from your initial plan. Never let this happen to you.

What You Need?

In fact, there are basic traits that can help ensure success in your budgeting and among this is to have a basic worksheet. With this and a will to stick to your budget, you’ll have greater chances of keeping things in control and see where everything goes.

When it is Reasonable to take out a Business Loan?

Telling everyone that you are applying for a business loan is like opening a can of worms. This will attract all kinds of opinions and everyone will tell you gruesome stories of what may happen if you push through with such notion.

While not every reason is a good one to be in debt for business, this does not indicate that there’s no good reason at all to take out a business loan. If you are seeing that your business is all set to take it to another level but you do not have the capital to do so, then the following may make you reconsider getting legal funding for your business.

Braving New Locations

Does your secretary need to take up office space in your kitchen or your cubicles are now busting at the seams? Perhaps, you are running a retail store or a restaurant and you now have more customers than what it can handle. With regards to this matter, it is safe to say that you are in dire need of new location. This is actually great news! Because this only means that your business is growing and that you are all set for expansion. But simply because your business is ready, it does not mean that you are financially ready as well to make it work.

As a result, you might want to take a loan in an effort to finance this major move you’re about to make. Whether it is adding location or moving and picking up, the upfront cost and the change of overhead is sure to be drastic.

But before you execute the initial steps in taking a loan, measure first the probable change in revenue that may come from space expansion. Could you still cover the cost of loan and generate profits? Take advantage of revenue forecast together with the existing balance sheet to see how such decision is going to impact your bottom line.

Establishing Your Credit in the Long Run

If you have plans of applying for a big-scale financing down the road, then the case could be made for starting with small and short term loans. This is extremely useful in building your business credit. Business startups usually have a difficult time to qualify for bigger loans if both the owner and business do not have firm credit history to show. Thus, taking out smaller loans and then regularly making payments on time is one way of building business credit for future financing.