Interested In an Interest Only Loan

Interested In an Interest Only Loan

You have finally found the property of your dreams. The contract has been signed and you are now in the process of finding exactly how you will be living and paying off the property for the next few years. Your lender may have already contacted you and given you the options. When the question comes up of what kind of loan you want, be prepared for the answer that will benefit you the most.

One of the major types of loans that you may be offered is an interest only loan. This loan is great for some that are getting involved in a home, but for others may not be as beneficial. This loan works by you first paying off the bank interest that is added as a percentage to your loan. After the interest is completely paid off, then you start paying off the house itself.

If you are looking at an interest only loan, you will want to make sure that the standard interest rates at the time are in the lower percentage. Interest only loans will have two types of interest rates that may be applied. The first is a fixed interest rate, which will mean that the percentage you pay will stay the same the entire time that you have the loan. The second will be a variable interest, where it will fluctuate according to the economy. This type of interest rate is good if you want to pay higher or lower amounts at different times, but not good if your pay check doesn’t have the same flexibility.

The interest that you get with an interest only loan will be determined by the lender and how they decide to set up your loan. It may also be determined by the amount of the down payment that you make and specific rules that are set to the loan. Before signing the papers, make sure that you know how all of these apply and what it means.

If you want to make sure that you get the best deal, then it will be important to know what the individual rules are. By doing this, you can ensure that your payments are beneficial to you as well as everyone else. One place to investigate is with the possibilities of an interest only loan.

Loan Pre-Qualification

Loan Pre-Qualification

If you are like most, you know that it would be beneficial to just have money handed over your way. You work hard at what you do and are financially stable. You know that it is time for you to move into a new place and want to make sure that you have the best opportunities available for you. The first investigation to make in order to step forward is through a loan pre-qualification.

Loan pre-qualifications will determine if you have the financial ability to invest in real estate in the beginning. By having the right pre-qualification, you can be guaranteed a specific amount of money and will have the ability to move into the home of your dreams.

The first thing that is determined with loan pre-qualification is how much you make each year from your job. By finding this, it will allow for lenders to know how much you will be able to put into a loan in relation to other expenses that you may have. Things such as personal debt and car loans, as well as credit card expenses will be calculated in this figure to show the first step to finding the right loan.

After these specific points have been added up, the time frame in which you will pay your loans will be factored in. This will give the companies an idea of how much you can pay and how this will relate to the debt and finances that you have coming in and out of your pocket. This will be defined by using formulas that will relate how much money you are making in relation to how much you can pay to balance out your loan. Usually, pre-qualification formulas will divide things by factoring in ratios for standards of living.

If you want to make sure that you have the right loan, then becoming pre-qualified is the first step that you will need to take. This will enable you to move forward with what you want and need for your loan. By knowing what to expect, you can prepare for the process of getting a loan and can move into the property that you want.

Top Ten Terms for Loans

Top Ten Terms for Loans

Everyone knows that you should never sign on the dotted line without reading the contract. This same term applies to loans. Signing a loan without knowing the terms and what everything means can be detrimental to your finances, credit and future investments. Before you sign on the dotted line, make sure that you know these terms and how they will apply to you.

1. Interest rate. The interest rate is the percentage of your loan that is added on every month. The percentage will vary according to the economy and will make a difference in your payments.

2. Fixed Rate. A fixed rate will be an interest rate that stays at the same percentage throughout the entire period of your loan.

3. Variable Rate. A variable rate will change according to the economy and the charts that are stating what the rates should be for interest. A variable rate usually changes every year and adjusts according to a specific given range of percentages.

4. Principal. The principal is what you will be paying on your actual house. Whatever you pay on your principal is what you will see in the end as your investment.

5. Escrow. This is similar to a savings account of your loan. Whatever you put in escrow will accumulate without paying directly into the loan. At the end of the term you can use it to finish paying off the loan or to invest in another loan.

6. Title. A title will be what you get to your home after it is officially yours, stating that the property belongs to you.

7. Deed. A deed will most often be used as a title for a commercial area. Instead of giving ownership it shows that the property is leased to the one who is using it as a business.

8. Home Equity. This is a loan or line of credit that you can get for your home. It will finance up to eight percent of your other loan and get paid back later. This helps if you want to consolidate loans or invest more into the property.

9. Appraisal. After an inspection of the home is made, an appraisal will be made. This will be an estimated value of what the home is worth.

10. Equity. This will be the actual amount of the property that you own. Most likely, it is what is being paid off of your principal amount.

Once you know some of these basic terms, you will be able to expand on your knowledge and find the exact loan that will fit your needs. These basic definitions will help you in making the right decision for the type of loan that you want.

What Type of Loan is That

What Type of Loan is That

Getting into real estate property is based off of the idea of money. Your exchange of money will give you exactly what you want for a home. Within each different type of loan that you decide to get will be different divisions on how you can pay off your home or office space. If you know the terms and types of loans that are available to you, it will be easier to move your furniture into the right place.

The first way that a loan will be divided is by the principal. This is the amount that you will pay that the home is worth in total. You will pay a percentage of this amount every month. The second type of charge for the loan is an interest rate. This will be a percentage that the lender you are working with will be able to keep because of their ability to loan you the money.

Within each type of loan you will be able to get, there will be a division in how you pay both of these off. It may mean that the interest rate or principle changes over a specific amount of time. From here, you can add escrow to your account, which will be like a savings account for your loan and won’t go towards paying off the house until you need the extra money.

Within each type of these loans are different rules, regulations and ways to divide what you are going to be paying. Different limitations for timing and the amount of money that you are able to pay are added into the loans. If you want to make sure that you are getting the best deal, make sure that you understand how each part of the loan will work together.

The main consideration that you will need to keep with your loan is how you will be paying off your home and where your money will go. Each different part of the loan will be an investment that will show your ownership of the home later on. By determining your needs, individual situation and what you believe will work best; you will have the ability to find the best possible loan.

Paying for your Child’s College Finances— Guide for Parents on Student Loan, Scholarship, and Grant

Paying for your Child’s College Finances— Guide for Parents on Student Loan, Scholarship, and Grant 

Let’s suppose that you have a child who will be graduating soon from high school. Of course, you will feel happy, just like any proud parent who have their children graduating from high school. It is one of the challenges of life that you have successfully surpassed, despite of the financial instabilities that you have probably experienced. It is time to celebrate, for you have fulfilled your responsibility of giving your child a bright future.

But as many would say, a high school graduation is not the end. In fact, it is just the beginning of tougher challenges that awaits you and your child in the succeeding years—college education.

At this point, you should start thinking about how you will finance the studies of your college-bound child. With the increasing cost of tuition fees, you need to plan ahead of time to avoid any misfortune, especially if you have experienced how to be financially-needing. You know how hard it is to have both of your hands tied-up against the increasing cost of your child’s high school education before. The sooner you start planning for the college education of your child, the less you will encounter financially-related problems later on.

If you think you will be faced again with financial problems, it is important that you know the different financial aid programs available for your college-bound child. Continue reading and learn the financial aids to lean on to:

  • Grants- it is the first type of college financial aid that you can apply for. It simply requires you to complete a FAFSA (Free Application for Federal Student Aid) form. Once the application has been sent, it will be evaluated and if your child will qualify, he/she will be entitled to the full amount of what he/she qualifies for. At this point, you need not do anything much further except to provide the name of the college or university your child wants to enroll to.
  •  Scholarships- although scholarship is commonly intended for students who have the “brains” but do not have the “fortune”, not all college scholarships are bounded to academics. Students who do not have the best academic record can still qualify to other multitudes of college scholarships. There you have the college sports scholarships, community service work scholarships, social involvement scholarships, and others. There are just the different types of scholarships for your child if he is not that talented when it comes to academics.
  • Student Loans- these type of loans have lower interest rates compared to other types of loans. There are instances where the loans are subsidized, which means that the interest does not accumulate until a student finishes college. Furthermore, these loans does not require a collateral, thus you do not have to worry about putting your own home as a collateral against the student loan for your child. Most of these loans are available on a variety of repayment plans at low interest rates and low monthly installment payments.

If you have not started searching for the various financial aid programs available, it is recommended that you start now. These financial aids will help you in the long run and will provide the funds needed for your child’s college education. Get yourself free from financial worries through these aids.

Which is Which? Student loans or Scholarship

Which is Which? Student loans or Scholarship

The issue about the rising cost of education is not new for everyone, be it for rich people or for the those just barely earning a living.

However, this is not of so much of a threat for those who want to enter college but are not capable to meet its expenses. This is because of the two choices made available for them, first is the scholarship programs. And the second is the student loans. They may apply to either of the two.

Basically, the scholarship gives off monetary award which do not require the beneficiary to repay it. Unlike the student loan, the money that was lent to the students will be paid after some time with the corresponding amount plus interests.

Hence, it seems to be apparent that taking a scholarship program is more convenient than the student loan. Yet, you should know that both still consists of its advantages and disadvantages.

In scholarship, the students need not worry about finances throughout his college years. Almost thousands of scholarships are made available yearly. The systems of the programs depend on the financial needs of a certain student.

Although, it doesn’t necessarily mean that you are not intelligent because you were not be able to acquire a scholarship. There are various types of scholarship, one is for the intellectuals who acquire and maintain high grades. The other is the specific scholarships designed for the ones who excel in definite fields, for instance, in the field of sports, math, science, music, stage performers and others.

Those who belong in average I.Q. may still win a scholarship. They may not possess the remarkable level of intelligence to win a scholarship, but their talents may secure them one.

Moreover, there are also scholarships designed for certain races, minorities, and other sectors of the society that needs monetary support. And scholarship is not just confined to college students, the students who would want to pursue further study may also benefit.

There are also several institutions that offer scholarship programs to their members, examples of this are the religious organization and union groups, etc.

Now, if you think you won’t be legible for any scholarship, there is still one option — student loans.

Student loans, as mentioned above is the financial aid given to the students to pay their tuition with the agreement to repay it with the corresponding interests in a given period.

Scholarships do not require for repayment, but student loans do.

The advantage of a student loan is that it will give you freedom to move as a regular student, without the pressure of maintaining high grades and you can do your other activities without thinking of the conflict in the training schedules.

The hassle is when you would consider it, student loans need to be repaid the moment you graduate; you have to pay to the very last cent plus the interests.

If you are the bread winner of your family, paying for it will be another burden though you already have secured a job.

Anyhow, it will depend on you, the important thing is you finish your college education and secure a diploma, be it from a scholarship or through student loans.

The achievement of earning your college education amidst the hindrance of money is the thing you will always be proud of.

Getting the Bait on Good Home Loan Terms Despite Bad Credit Score

Getting the Bait on Good Home Loan Terms Despite Bad Credit Score

Getting a home loan is just like getting recognition at the end of each academic year in school. Before you are awarded of any recognition, you must comply with the requirements for such recognition. For instance, before you will be given an academic award, you must first satisfy the required general weighted average on each or all subjects. Other awards also follows particular criteria before it would be awarded to deserving students at the end of the school year.

The same thing also goes in securing a home loan. There are certain requirements that you must meet before you will be able to secure a home loan. One of which is that you must possess a good credit rating.

However, despite the wide availability of home loans, there are still thousands of individuals who failed to secure home loans merely because they possess a bad credit score. They are not fully aware that any delinquency in paying their outstanding loans caused the “stain” in their credit record, thus they would be having a hard time securing a good home loan.

In other words, possessing a bad credit score simply means you are giving the lender reason to get more money from you through giving you home loans with high interest payments. You want to secure a home loan because you do not have enough money to finance the purchase of your new home, and yet you will be given a financial burden if you insist on getting a home loan despite of your bad credit score. That would be a terrible situation for your part.

Fortunately, there are still loan options for you despite your possession of a bad credit score. There are commercial lenders who offer bad credit home loan for individuals who are having a hard time securing a loan to finance the purchase of their new home. However, bear in mind that because of your bad credit standing, you will automatically become a “great risk” to the lender. Thus, expect that they will charge you higher interest rate as an assurance that you will be able to repay your home loans in the agreed period of time.

Bad credit score will really put you in a situation wherein it is you who is on the bottom of the wheel. Thus, you need to strongly convince your preferred lender that you are still worthy of another chance and not be a risk to them. How to do it? Have a look on the following guidelines and make sure that you will follow them.

· Research for the best available bad credit home loan offer in the market. You may prefer visiting various commercial lenders and financial institutions in your local area to know their terms and conditions as well as their rate of interest for home loans with bad credit score. In addition, a personal contact inside these financial institutions could be of great help in your credit problem.

· Cleanse your credit rating while there is still time for you to do so. If there are incorrect entries posted in your account, it is best that you call the attention of the authority with regards to this matter and have them clear your record of any incorrect rating. You may also ask for some certification from your previous lenders clearing you of any financial obligations. In this way, the recovery of your credit rating will be in place before you can secure another loan.

Getting a home loan with bad credit score could really be a daunting task. But if you manage to clear your rating in the shortest time possible, you will be able to secure a home loan that will not be a financial burden to your part later on.

Student Loans with No Cosigner

Student Loans with No Cosigner

Attending college is an exciting time in any person’s life. Whether you are fresh out of high school, returning to college after leaving for a while, or have been in the workforce for some time and have decided to finally fulfill your dream of a college education, there is a certain thrill and excitement present when you walk down those cobblestone lanes, between old buildings covered with ivy that speak of history and tradition. Yet paying for this adventure can be a real challenge, especially when you need to consider student loans with no cosigner.

There are two main varieties of student loans: Federal student loans, known as Stafford loans, and private student loans, which can come from any number of different lending institutions. If you are young and don’t have a credit history, and are applying for private student loans, it will be very challenging to find a firm that will lend you money without a cosigner on the loan. If you do obtain a student loan without a cosigner, you will be facing pretty steep interest rates and high fees as well. For returning students and those who have been in the workforce for a while, this won’t be as much of an issue.

Once you have finished your four year degree, and are considering graduate school, a lot more options will open up for you. Once you have your degree, and are seeking entrance to graduate school for a Masters or Doctoral degree, you will be considered a much better credit risk, and many more institutions will open their doors for you and offer you student loans with no cosigner.

Thankfully, private student loans that require a cosigner aren’t the only loans available. The only student loans that never require a cosigner are the federally guaranteed student loans – the FAFSA Stafford Loan Program. Not only is a cosigner not required with these loans, but you will get a much lower rate of interest as well.

When you take out a federally guaranteed student loan, the US government acts as your cosigner – so you won’t need one. Now the amounts you can borrow are typically less than with a private loan, but you will most likely be able to borrow enough to cover tuition, fees and books at any public college or university.

Another advantage of the FAFSA government student loans is the fact that they don’t look at your credit history either. So if you are credit challenged, you can still return to school, complete your degree, and pursue the career path of your dreams. When applying for the Stafford loans, if you are still a dependent on your parents financially, they will look at your parents’ income and assets to determine eligibility, as well as your grades, proposed course of study, and the amount of tuition at the college you wish to attend.

While you probably won’t get into an Ivy League school if you are limited to student loans with no cosigner, it is still quite possible to obtain the funds you need to pursue almost any course of study, at the less expensive states schools. Don’t be concerned that the quality of education will be any less; many state universities are in fact considered world-class. Ultimately, what counts is your ability, and you can prove that ability in a state college just as well as you could with any good private university.

Applying for a Student Loan

Applying for a Student Loan

Applying for a student loan can seem like an arduous task if you have never done so before. Yet this need not be the case. By preparing for the loan application process in advance, before you ever even sit down to apply, you will improve your odds for approval and lower your stress at the same time. Here are some helpful tips that will ease the process, and make applying for a student loan as simple as sitting down and filling out a few forms online.

You should be aware of the different types of loans for students that are available, and how they align with your own needs. To do this correctly, you should have a clear picture of how much money you need, and what you need it for. This is important, as the amount of money you need to borrow will determine what kind of loan you should be applying for.

Some of the factors you need to consider are whether you are attending a private or a public college or university. Attending a private college is going to cost a lot more, so the amount you need to borrow will be a lot higher as well. Too, you’ll need to factor in living expenses in the city you are going to be attending college at. Do you want to live in a dorm room, or get your own apartment? The cost difference can be substantial.

Books, fees and supplies are another important expense to consider. While one would normally not consider books as a huge expense, in college its a different story altogether. Many textbooks can cost over 100 dollars – just for one book. You could be spending hundreds of dollars on textbooks every quarter or semester, so this is an expense that bears consideration.

Once you have an accurate picture as to your financial needs, you can begin narrowing down the types of loans you will be applying for. If you are planning on a two year program at a public community college, your needs will probably be small. If you wish to attend Yale for a Master’s degree, your needs will be much larger.

Where this segues into the types of loans you apply for is in the fact that federal, subsidized loans are only available up to a certain limit. If you can do your education for less than 10 grand a year, you should be able to get by with just government loans. These have the advantage of being fixed rate interest, and a lower rate of interest than you would normally pay with a private institution. Cosigners are often not needed, and the application can be filled out online in just a few minutes.

If your college expenses are going to be more than 10 thousand a year, you will probably need to obtain private student loans to fund the cost. Applying for these loans isn’t much different than the process of financing a house or car, with a few notable differences. For larger private student loans, you will probably need a cosigner with good credit in order to get approved. You will need to provide references and tax return information in many cases as well. Other schools you have attended, as well as jobs you have held, should also be information you have ready to submit when you are completing the online application process.

Bad Credit and Student Loans

Bad Credit and Student Loans

In this day and age, many people who have been in the workforce for some time find themselves unemployed, or what is worse, unemployable. They simply don’t have the training or skills needed to compete in today’s global economy. Often the only solution is to return to school and retrain in a field that is in demand and that offers plenty of job opportunities. Student loans are often required in order to finance the needed retraining, yet bad credit and student loans seems like a contradiction, yet many of those who need retraining are also those with less than stellar credit.

In order to go back to school, it is often necessary to borrow money to finance the trade school, vocational school. or college education needed in order to get qualified for the career path you are interested in. For some, this can seem like a dead end. Since they are unemployed, they have fallen behind in their bills – thus, their credit is bad. Since their credit is bad, they can’t get the loan they need to retrain. And since they can’t retrain, they can’t get the good, high paying jobs that would allow them to improve their credit. It’s a vicious circle and are real catch-22 situation. Thankfully, there are solutions for those with bad credit who need student loans.

It used to be pretty much impossible to obtain a student loan if your credit was bad. You could apply with a hundred different banks, and all of them would say no to you. Often, the only solution was to improve your credit before even applying. Yet, without a good paying job, improving your credit can be an almost impossible task. Even if you were approved, you would still face daunting fees and very high rates of interest.

As a result of this impossible dilemma, many people have postponed their higher education, or even given up on those dreams altogether. Yet this need not be the case. Where there is a will, there is a way, and this holds just as true in obtaining ones higher education as it does in any other of life’s most important endeavors.

In today’s financial world, there are solutions for bad credit student loans. First, many government guaranteed student loans don’t place as high a value on credit score as you would see from a private lender. While the total lending amount will be smaller, it should still be sufficient to allow you to attend vocational school, technical training programs, or even public universities and community colleges. By attending school at night and working during the day, while using federally guaranteed student loans to pay for your education, it is in fact possible for those with bad credit to get the student loans they need to pay for the training that will allow them entry into higher paying career paths.

In the private sector, there are many lending institutions that will provide private student loans to those with bad credit. You will have to pay a higher rate of interest on the loan, and terms won’t be as good as they would be for those with better credit. However, if you can be certain you will be able to gain entry into a higher paying career, the investment may still very well be worth it. Just be sure and read the fine print, as terms may be onerous if you are ever late on a payment, and the loan company may increase your interest rate substantially.