How to find eligibility for mortgage loan?

eligibility for mortgage loanVarious types of mortgage loans are out in the market from a number of financial companies. However, before applying for any one it is important for you to do proper research and know about the essential criterias that the companies take into consideration before granting eligibility for a mortgage loan from their firm. Knowledge about them is all the more important since the company determines the rate of interest on the loan based on those criterias.

Your capability to pay back the loan is the most important criteria as far as the company is concerned. Your credit history and bank records will provide the company with ample information about your current financial position. There are three major credit bureaus in the US and all money lending companies can obtain the credit reports of any individual from these bureaus. Credit reports contain your income, your credits, and any late payments that you might have made towards mortgages, rent or credit card bills. If you have a good enough credit report with a credit score of over 600, you are more likely to get a mortgage loan from most lenders.

Another essential criteria is your debt-to-income ratio. This determines your eligibility as well as the interest rate on the loan. If you have a debt-to-income ratio of 28/36, you can almost be sure of getting the mortgage loan. There are also certain companies that provide the loan to customers having a low debt-to-income ratio. They do this to take in a high down payment on the loan and also a higher interest rate.

Apart from the major criterias, if you have a steady job, regular income and a satisfactory employment record, your chances of getting the loan increase all the more. You must be working under a single employer for a period of two years or more to be eligible for the loan.

Interest rates also differ if the loans are privately insured by mortgage companies or federally insured.

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All about Cyber Crime

Cyber CrimeThe increasing rate of Cyber Crime in financial institutions is creating a huge problem. This tends to increase the burden on the banks, which in turn is a burden on the customers, placing them on very high risks. Financial institution must therefore know about all the threats that they are exposed to and find out the possible solutions so as to protect themselves.

The cyber criminals plan out a very careful strategy and design new technologies which are very difficult to track, thus posing huge risk of loss to the potential customers. They are very cautious on all their moves and innovate new ways of trapping users. Such criminals set up very attractive messages on the websites of various banks and on clicking these options they get an access to your login details and passwords. Such details can be used in a very wrong way to transfer huge amounts from your account to some other account. ATM users are also exposed to cyber crime where they use different tricks to get the user’s pin number and make fake cards to transfer money from your account. Today the primary sources of conducting the transactions are the internet and ATM banks which are exposed to such risks. It therefore becomes increasingly costly to set up technologies that can prevent such fraudulent practices.

The possible solution to this sort of a problem at the macro level the financial institutions must have their services given to reliable security companies. This will also help them to reduce the cost of having an in built technology to fight against cyber crimes. Besides all this they must also have some technologies with themselves to ensure double safety. Spreading awareness among the people about the different types of cyber crimes will also make the customers be on guard and protect themselves.

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What happens to the student loan when the borrower dies?

student loanHave you ever wondered that what could happen to the student advances when the borrower dies? If you too have taken to a student loan you must be aware of the consequences lest, God forbid, something bad happens to you unexpectedly. Now, it’s to mention here that the consequences of the student loan on the borrower’s death would vary from loan to loan and state to state. The post here is a brief stating what might happen to the student loan in case the borrower meets with an untimely death.

The first question that comes here is that in case the borrower dies, is his or her spouse would be held liable for the loan or not. The answer is both “Yes” & “No”. In case of traditional loans, if the survivor spouse is not the joint-account holder or co-signer, she or he won’t be considered liable. But the situation changes if the couple had been residing in any of the community property states. In case of the community property states, the survivor spouse would have to repay, irrespective of whether she or he was the co-signer/joint-account holder or not. The community property states are California, Arizona, Louisiana, Idaho, Wisconsin, Washington, Texas, New Mexico and Nevada.

In regards to federal loans, the survivor spouse is relieved from the obligations of repayment in case the borrower dies. According to the loan regulations by American Education Department, in case the student loan borrower expires, the debt would get cancelled automatically & it would be discharged by government only. However, it’s not the case with private student debts. In regards to private student advances, whether the survivor couple is responsible for repayment depends on the specific loan policies of the lender. Thus, it’s always advised that you take up a detailed study on each of the terms and conditions of private student advances before signing the deal.

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Easy ways to get a home equity loan

home equity loanIf you are planning to buy or renovate a house, you can opt for a home equity loan. Some important information should be gathered though before taking a loan out. The amount that you will receive will differ a lot from the amount that you need to pay back. Usually loans are provided by banks or any other financial institutions. Having a secondary loan towards your property is what’s called an equity loan.

Nowadays home loans can be applied for online where a varied range is given. Though money lenders such as banks and other financial institutions are ready to provide you one, the online process is much easier and faster. You can also consult with the lenders personally on the details.

Another thing you should know before taking out a home equity loan is the interest rate that will be charged. The interest rate depends on different factors. They consider the amount that will accrue, the time period for which the loan is taken out and the size of the loan (which is a considerable factor). The fixed and variable rate should also be taken into account. A fixed rate is something that is determined at the beginning and remains the same throughout the loan period. In the case of a variable rate, the rate of interest goes up and down throughout the process of paying back the loan.

Taking out a home equity loan doesn’t mean that you can only take it to buy a new house. This is a source of income opted by many for carrying out home improvement projects. People even use the money to pay for your children’s college costs or even credit card payments. There are even short term loans with a 2-3 year repayment plan as well as long term loans with a 25-30 years repayment schedule. It just depends on how much you need.

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Tips to get affordable car insurance

car insuranceThere are quite a lot of ways for you to find a car insurance which will not harm your pocket much. A timely search in the internet will solve your problem of giving too much to the insurance company. If you want a better deal the first tip is to ask for a quote to different insurance companies. You can ask the agent to come up to your convenient place and ask him to explain the affordable insurance coverage.

Though there are many companies available who will try to make you understand that they are giving you the best and cheapest packages but the fact is that most of them does not have the clear conception of what the word ‘cheap’ is actually called. Insurance policies often provide different prices for the same policy which you need to understand clearly from the agent before going for it. Different types of discounts are also available for different packages and you need to ask the agent whether you will be eligible for a good driver discount.

A driving license and education certificates are the minimum requirements for a good driver discount. If you have more than one vehicle and if you are getting all your vehicles insured by the same company you can get the discount for multiple vehicles insurance. But if those vehicles are not insured from the same company, you will not be eligible for it. So, a change in the insurance policy will help to get this facility.

If you chose a higher deductible then your monthly premiums will be less. This way also you can save your hard earned money. It is a good option for you to choose the minimum insurance package that is allowed in your state. But choosing this option won’t be correct if you have a newer car which still costs a lot. If unfortunately any accident occurs and you want the insurance company to pay the whole amount, you should take a bigger risk. So, it is for you to decide and chose among many options that which car insurance policy will serve you the most.

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Tips To Help You Find A Good Forex Broker

Forex BrokerThe forex market is very lucrative and highly competitive. The reason behind this is that it is a globally well-appreciated market. The market is open and active for twenty-four hours every day so that traders from every nook and corner of the world can invest in currencies.

There are many forex brokers that are in business today. But a majority of them might just turn out to be fraudulent.This means that finding a good broker from among a bunch of so many fake ones is a confusing and difficult task. This article will put forward certain tips that will help you find a reliable forex broker.

It is very important that you hire brokers that are regulated by some major authority in your country. Go for the forex brokers who are actually under the direct authority of the government of your country. If the broker is listed and recognized by your government or a major regulatory authority then that means the broker can be trusted and will provide you with credible services.

Select a forex broker who knows how to respond quickly to the customer queries and has the skills of tackling all the problems that arise in the forex market from time to time. The broker should have a good reputation among all its previous customers. He/she should have years of experience in the field of forex trading.

The trading platform provided by the forex broker you choose must be flexible and simple to use. It will be beneficial for you if your broker can provide you a web-based trading platform. You can even look for trustworthy forex brokers on the internet. Go through the online reviews of forex brokers. If possible then select a broker that offers forex trading guides, courses, free bonuses, expert advices and so on for your convenience and knowledge.

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Bankruptcy Lawyer- How To Find A Reliable One

Bankruptcy LawyerToday, most of the people have been facing a lot of economic problems. Some have been struggling so much financially that they are actually thinking about filing for insolvency. But the process involved in filing for liquidation is not that easy. Experts always advise that whenever you want to file for insolvency then you must hire a bankruptcy attorney. Bankruptcy is that area of law which is very complicated. If you are unknown to the world of law then it will be a smart move on your part to hire a lawyer before you file for insolvency.

Firstly, to find a reliable bankruptcy attorney you have to ask for referrals from a lawyer who has been handling your other cases. Your lawyer must have interacted with some bankruptcy lawyer. If your lawyer does not know an attorney who specializes in the field of insolvency then he/she can help you find one for sure. You can even search the internet for bankruptcy lawyers. Check out the websites of the different bankruptcy attorney firms and read through the customer testimonials found on their websites.

Always arrange for meetings with different lawyers before you choose one from among them. This is essential because it will help you judge the quality of the bankruptcy lawyer properly. At last you will be able to pick the attorney you think will be able to handle your case confidently and appropriately. It is necessary that you check for the license of the lawyer. Also ensure that he/she is well trained and experienced in the field of insolvency. Never hire an amateur bankruptcy lawyer as your future will depend on how he/she works.

Law associations and societies in your locality might also be a good source of information regarding the genuine bankruptcy attorneys that are situated in and around your area.

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Things You Should Know About Car Loans

Car Loans, loansIf you are planning to buy a car and you are planning to take out a loan then there are a few basics which you should know about auto loans to get the loan without any hassles. First of all, you need to manage your credit well. You need to have a clean credit score. Even if there are discrepancies, they should not to be too bad to leave permanent damage to your credit report. After that, find out what kind of car you want, if you want a first hand or second hand car or if you want a customized one, etc.

All this will help you set a budget so that you can take to the loan on the basis of what you plan to get. A car loan doesn’t just cover the cost of the car, there is insurance, repair, maintenance and accessories which would need money, not to forget the fuel. Keeping all this in mind, you need to take out your loan. Your clean credit history will be able to get you better interest rates of the loan.

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Simple Debt Advice for Managing it All

If you are a borrower, following simple, methodical steps can help you reduce and manage your liabilities in the long term. “Liability” and “obligation” are synonyms with “debt,” so debt management specialists use the three terms interchangeably. To gradually curb your debt load and reach financial freedom, you should track your expenses, increase your income, monitor your assets, live within your means, and seek professional advice if your personal situation demands it.

Track Your Expenses

Track your expenses to determine areas where you tend to dole out too much cash, as well as things that are keeping you from attaining economic stability. Living expenses run the whole gamut, from electricity and gas to rent, travel and entertainment, equipment maintenance, interest and telephone. If you own a house, don’t forget to exclude from expenses the principal portion of your mortgage payment, because only the interest portion qualifies as expense. Use an accounting log to monitor your expenses and review them at the end of a specific period – say, on a monthly basis or every two weeks.

Increase Your Income

Advice for debt management is an effective way to slash a person’s liabilities in the long run, but business people often say it is insufficient. To be helpful and effective in the long term, debt advice must go hand in hand with income management. A step in the right direction is talking to a debt advisor, such as with companies like www.ConsolidatedCredit.co.uk that specialise in debt advice. Determine whether your current earnings can sufficiently cover your living expenses, leaving you a nice cash portion to build your retirement nest egg or set up a college fund for the children. If your earnings level is low relative to your expenses, and you think some of the costs are fixed in the short term, try to increase your income. Seek a second job if your personal circumstances are conducive to that alternative; you also can get extra cash from interest income by opening a certificate of deposit or savings account. Talk to your banker and ask him or her the various options available to someone wishing to augment his or her investment income.

Monitor Your Assets

Business people call “asset” anything a person owns and that he or she can use to live, fulfill a dream or advance in any endeavor – be it to go to school, open a business or buy property. “Asset” and “resource” are similar concepts in an accounting lexicon. Your personal assets include cash in checking accounts, retirement accounts, mortgage-free property, debt-free cars and furniture. Anything you own that doesn’t have a single cent of debt attached to it qualifies as asset. Monitor your assets closely to ensure that your quick ratio stays positive. Quick ratio equals current assets – think cash and tax refunds – divided by current debts, which are obligations you must repay within 12 months.

Reduce Your Debt

Try to reduce your debt over time, making sure you live within your means. Remember there are different kinds of debt, some of which are due in the short term. You must repay a long-term debt – such as a mortgage or student loan – over a period that spans several years. A short-term liability, by contrast, is due within a year. Pay attention to debt transactions that you co-sign, because they may become your own debts if the principal borrower does not pay on time, or defaults altogether. For example, if you co-sign or guarantee the credit card application of a minor relative – say, your 16-year-old niece – the credit card company will require you to repay whatever amount your niece spent and refused to repay.

Seek Professional Advice

If you do not have expertise in matters of finance, asset management and debt management, seek guidance from someone who understands the subtleties of liability planning. Professionals such as debt counsellors, certified public accountants, estate planners and financial planners can help you on debt management questions.

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How to Negotiate with Your Creditors

Elaine McPartland from ConsolidatedCredit.org goes into a bit of detail on how to work with creditors to negotiate your current debt. Elaine can be found online through Google+.

The ability to negotiate effectively can go a long way in helping your improve your financial outlook. This is especially true when it comes to negotiating terms and interest rates on your debts, such as requesting for a creditor to reduce the interest rate on one of your credit cards. With lower interest, the debt doesn’t cost you as much money to pay off. It can also improve your monthly payment schedule so you spend less of your income covering credit card debt payments each month.

Ideally, you want to negotiate with your creditors before you have a problem with your account because this provides you with a position of strength to start the negotiation process. If you’ve been a good customer who has paid responsibly on your debts since opening the account, then the creditor has good reason to work with you in order to maintain a strong relationship with a responsible client. This is especially true if there has been an improvement in your credit scores since you opened the account.

If you want to negotiate with a creditor, first figure out what you want to accomplish during negotiation. In general, you will likely be asking for an interest rate reduction. First check your statements to see where your APR is currently. Compare this to other credit card accounts that you have open and cards you could qualify for given your current credit scores. This will provide a baseline of what you want to achieve during negotiation.

Call to speak with a customer service representative and request the interest rate decrease. Be firm in the negotiation, but make sure strength doesn’t turn into pushiness. Don’t accept the first offer the creditor puts forward – be consistent and diligent in requesting the decrease. If you don’t succeed with the first representative that you speak with, thank them for their time and call back later to try again with a different agent.

In some cases, you can also call to negotiate when you are having problems with your debt. During a financial crisis, you may be able to negotiate with your creditors to waive penalties that were applied to your account or to temporarily adjust the payment schedule on your debt. If you’ve been responsible in the past, but have encountered financial distress because of a change in your employment or other issues, then you may be able to get your creditors to help you get through a temporary period of hardship when your circumstances change.

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