Home Equity Loan ,Student Loan ,Car Loan And More

Domain Name Yahoo

2008-04-05T19:48:00.000-07:00

Domain Names, Exotic Extension vs Dot-com

By: Luigi Castagna
Domain names are a method for allowing internet users to navigate the web sites easily. They are names used to stand in for numeric IP addresses to make web surfing simpler in that the user can apply the name that he's looking for rather than having to search for or memorize numbers. Also known as host names for computers.

Consider domain names as the internet's little piece of real estate. Some of the top level Domain names are dot-com, dot-net, dot-org, etc. The name directly to the left of these top domain names is considered your second-level domain names. Directly to the left of the second-level name is a third-level domain name which is commonly known to designate the host server. These levels can go on up to fourth, fifth and so on.

Domain definitions

When the World Wide Web began the intent of using dot-com, dot-org was intended to go with its specific definition. Dot-com was to stand in for commercial, dot-org was for organization and so on. The second level domain name was to identify a particular entity or business while the third level often times specified the country the host server was in. However, due to the popularity of the dot-com designation many non commercial sites would strive to get addresses under the dot-com trademark.

Abuses

Cyber squatting is a term referring to a company or entity trying to redirect traffic towards their site by using similar names to well known companies. Laws were enacted to protect these companies but then it led to what's called reverse domain hijacking by companies suing other companies for using similar generic names claiming it was their own trademark when actually other companies may have a legitimate grounds to their names.

As the internet grows bigger there has been a need to set up corporations whose primary responsibilities are to maintain and regulate the internet traffic and uses.

History

Domain names were first implemented in 1985 and originally there were only six of them. Today due to the huge demand and traffic on the World Wide Web, there are upwards of twenty different domain names all of which were intended to represent the type of organization to make it easier for people to search for particular topics.
Exotic domain names

Since domain names have been around for such a long while most of the good names have been taken. More and more people have had to resort to more complicated names and as a result may lose out on some business since the simpler the name the easier it is for people to remember. Some hackers have created unique domain names by taking a name and putting dots and @ signs strategically to resemble existing third level domain names.

Obtaining domain names

Domain names are usually sold by people called domineers for a price. They can even been leased to users for a period of time. There are some companies that offer low-cost or even free domain registrations, however there is a requirement of hosting on their sites with their advertising in the user's content. This allows the provider the ability to make money off of someone else's website. Domain Name Yahoo

Your Identity - Picking A Domain Name To Register

2008-04-05T19:44:00.000-07:00

By: Jim Brown
Your Identity - Picking A Domain Name To Register

Perhaps the most poignant scene in Arthur Miller's play The Crucible happens at the end when the protagonist, John Proctor, refuses to sign his name on a false confession. When asked why he refuses to sign the document, even though it could save his life he cries out in anguish, "Because it is my name. It is the only name I will ever have." It is a heartfelt and stunning reminder that our identity begins at birth when our parents name us. A web site also depends on its name, which is why choosing a domain name that best represents your site and its purpose is something to be done very carefully indeed.

Choose the right name

When you are ready to start a web site don't just run to the first registry you can find and type in the first thing you think of. Sit down and do some research about your site and what you hope it will accomplish. What is the goal of your site? What kind of images do you want customers to associate with it? If you could sum up your site in one word, what would that word be? The best domain names tend to be names that are short and easy to remember and something to do with the topic or service your web site provides. If you are going to attempt humor with your domain name, make sure it's a joke that not just you can understand. Overall, the name should add to the quality of your web site not distract from it.

Check availability

As you're picking a name for your web site such a yahoo domain name, one of the common things to happen is you find the absolutely most perfect name possible, go to the registry and type in the name in the lookup box and lo and behold - its already taken. Then you have a problem. You're already sold on the idea, and now it's not workable. Make sure to have a lookup box from the registry available as you are choosing the name for your domain site so you can check availability instantly. You should also check names that are similar to the domain name you are choosing to make sure there won't be confusion later on in and your advertising doesn't accidentally send your customer to someone else's site.

Pick the right extension

Many registrars will also let you choose the extension along with your domain name. That means that you get to choose whether your domain name will be a.com. or .net .biz or any of the other approved for public use extension names. Be sure to pick one that does not mislead your customers or clientele. If you're really selling something, choosing an .org which is largely for nonprofit organizations or a .net which is for social networking, may seem like a brilliant way to get people to your site. However, customers know when they've been conned and it tends to backfire on the business. Choose the proper extension for what you're doing and let your site's integrity sell itself.

What's in a name? Everything. Careful and thoughtful picking and use of the name for your web site will help keep your enterprise on the top of its game.

domains yahoo

2008-04-05T19:36:00.000-07:00

How to Get a Cheap Yahoo Domain Name

By: John C Alzza
Once you have decided that you want to have your own website on the internet its important that you choose a yahoo domain name that accurately represents what you plan to use it for and what extra features you need to get the most out of it.

With over 80 million registered domains on the internet its becoming harder and harder to find relevant yahoo domain names that are available which are related to the topic you want to target, especially for .com domain names which are by far the most popular. For this reason there are now many other types of yahoo domain names which you can choose from such as .net and .info.

The first thing you will need to do is visit a website such as Yahoo and start searching for available .com domain names using the search feature. As most names are already taken you will probably need to use three or more words to find one that is available (you can also use hyphens between each word to find available names).

Because people are familiar with .com domains you should start searching for them first but its not absolutely necessary and you can find a much shorter name using a different extension such as .net or .info. The extension of your yahoo domain will not effect the performance of your website or how well it operates.

If you want to generate free traffic from the search engines and achieve top rankings you should try to use keywords that you want to target in your domain name. So if you want to start a website about losing weight you should try to use words like "weight loss" or "diet" in the domain name to help your rankings in the search engines for those keywords.

Just having a popular keyword in your yahoo domain name is not enough to achieve top rankings but it will help the search engines identify what your website is about so its important that you include at least one keyword that relates to the market you want to target if you want to generate free traffic in the future.

When you have found a yahoo domain name for your website you should seriously consider adding the private registration option to your order. This will protect your domain from unwanted attention by hiding your personal details such as your email address which could be collected by spammers.

After you have purchased a yahoo domain name you will need to find a website hosting plan that suits your needs and meets your requirements depending on how much disk space and data transfer you need. Once you have a hosting account you can set up your website and have it up and running within a matter of hours. domains yahoo

Financing a Second Home? Use a Home Equity Loan

2008-04-05T07:56:00.000-07:00

Financing a Second Home? Use a Home Equity Loan

When you take out a loan to buy a second home, banks will scrutinize your credit reports and income documentation very closely. They want to ensure that you have sufficient income to meet all your obligations. But if you have a good credit score and a valuable first property to use as collateral, getting approval for a home equity loan is usually an easy process, and may be a less expensive and speedier one than opting for a traditional mortgage loan.

Advantages of Home Equity LoansBy using a home equity loan, you may be able to avoid some of the closing costs associated with originating a completely new and separate mortgage. There are also specific tax benefits, in the form of deductible expenses, which are allowed for those who take out home equity loans.

If you do a little homework and crunch the numbers, you may discover that a second home is less expensive than you thought, and comes with interesting perks. One of the best benefits is that you can rent out your second home to tenants when you're not using it as a vacation property for your own family.Second Home for Income ProductionA second home can actually help you earn extra income.

If you buy from someone who rented or leased the house for profit, you can prepare a financial statement based on the past income history of the property and show it to your lender. By reviewing the records, a bank or mortgage company will see that the property will probably not be a financial liability, but may actually add extra net income to your bottom line.You may also want to hire a professional appraiser to do an objective market analysis of the property.

By comparing it side-by-side to similar income-producing properties in the same neighborhood, an experienced appraiser can ascertain a home's future income potential with remarkable accuracy.If you're fortunate enough to be able to afford a second home, you're smart enough to investigate a variety of ways to pay for it. A home equity loan may be the most intelligent way to go. To paraphrase an old expression, "Home is where the equity is".

The Best Time for an Auto Loan Refinance

2008-03-11T03:26:00.000-07:00

Refinancing an auto loan is a lot like pistons firing on an engine. Unless the timing is right, everything will break down. If you're considering a car loan refinance, remember this, and you'll save big bucks as you travel down the financial freeway.Car enthusiasts tend to place a lot of emphasis on speed. When it comes to refinancing a car loan, however, it's not the car owner who gets to the bank first who wins the race. The person who shows up at just the right time is the one who takes the checkered flag.

An overhaul for your auto loan
The most obvious indicator that you need an auto loan refinance is a dip in interest rates. Shop around at different lenders, and let them know that you're looking for a certain rate. The good loan officers will give you a call if the rates drop to your magic number.

Many online services also provide this function.Not everyone refinances based strictly on rates alone. Some people choose to refinance their car as a method of debt consolidation. They might, for example, roll their credit card debts into their car loan. This might work if you're renting, and your credit cards are at a higher interest rate than a potential car loan.

If you're a homeowner, you might want to consider a home equity loan with tax deductible interest. You can also refinance a car loan if you're planning to keep it long after it's been paid off. Many times, automobile owners refinance simply to boost their cash flow, understanding that they're stretching out their payments a few years.

Keeping your current loan in gear
There are plenty of reasons why you shouldn't refinance your auto loan. The primary reason is that refinancing involves lengthening your repayment term. You may be choosing a refinance because you're experiencing some short-term financial pain, but a refinance could stretch your payments out for years.

If you plan to sell your car in the next year or two, you can't refinance it. That's because you'll have to finish up loan payments, and you won't be able to sell a car if you currently owe money on it. You'll also want to take a careful look at the interest rates of car loans, especially if your original one was for a new car.

Rates on new auto loans tend to be lower, so refinancing will cost you more over the long haul.Peeling rubber and flying from 0 to 60 in seconds may be a ton of fun when you're behind the wheel, but it doesn't make much sense when it comes to auto loans. It's important to take your time-not rush to a quick decision-when you refinance. Carefully analyze the current rate environment and the age of your car, before you make a move to refinance. You don't need to drag your feet, but you should absolutely proceed with the caution of a yellow light.

Buying a Car Online

2008-03-11T03:24:00.000-07:00

Author Michael Crichton once labeled the Internet as "the Home Shopping Network." The Internet features all kinds of retail opportunities, including car buying, where the smart shopper can save big bucks on an auto purchase.

Let's be fair: There are plenty of excellent car salesmen in the world who can be very helpful when it comes to buying an automobile. But for the purchaser who doesn't want to chance getting hooked up with one of those pushy salesmen, shopping on the Internet is a nice alternative. Not only can the Web save you from a tension-filled shopping experience, it can also help you save a few extra dollars on the purchase price.

Net yourself some savings
It's not surprising that thirty percent of all car purchases are made online. Studies have shown that an auto purchase done online can save you an average of 2 percent. The Internet effectively cuts out the middleman (the car salesman) and his commission, which can put dollars right back in your pocket.

Kick some virtual tires
The computer can aid you in a variety of ways throughout the process. You can use it as an information source. There are countless websites dedicated to reviewing the various models on the market. Read the reviews, and visit the sites of the car manufacturers to get specifics on the makes that you're interested in. When you've narrowed your choices down, visit a car showroom and take your specific model for a test drive.

Different online options
There are several different types of Internet car buying services. These include:
Referral sites: These websites help you comparison shop. You have the opportunity to offer a price, which is then passed on to car dealers who compete for your business. It's a great way to get an excellent price, and can save you lots of legwork and money.

Online dealerships: How about making a visit to a virtual showroom? After you've checked out your car through cyberspace, you can buy it online, and pick it up at the dealership.
Direct services: Why get up off the couch? Direct services allow you to shop online, select the make and model you want, and finish up the deal with a company representative. The car is even delivered right to your door.

Auction websites: Internet auction houses such as eBay let you bid for a car online.

Many choose the Internet as an alternative to pushy car salesmen; others use it to do research and save time comparison-shopping. No matter how you blend it into your car buying process, the odds are in your favor that you'll wind up with a better price. It's why so many car shoppers opt out of dealing with showroom salesmen, and opt in to the convenience and cost-savings of the Internet when buying a car.

Brokers and IRA Withdrawals

2008-03-11T03:13:00.000-07:00

Unsuspecting IRA savers have recently suffered some big losses by following the advice of their brokers. Avoid the same fate by knowing the rules about early IRA withdrawals.

In life, there are high roads and low ones. While some folks may try to tell you that there are shortcuts as well, cutting corners in personal finance is never a reliable way to get ahead-particularly when your retirement funds are at stake.

No shortcuts
Citigroup Group Global Markets brokers are in hot water. It seems that these brokers were making some aggressive recommendations to their clientele regarding SEPPs, also known as substantially equal periodic payments. SEPPs are penalty-free, early withdrawals taken from IRA accounts, provided for by IRS Code Section 72(t).

The SEPP regulation acknowledges that, in some emergency situations, accountholders may need to access their retirement funds before the age of 59 ½. Citigroup brokers, however, characterized the SEPP regulation as a loophole that allowed accountholders to retire early. Clients who followed that strategy watched their account balances drop by a total of more than $12 million. Citibank now faces lawsuit settlement charges of more than $15 million.

Play by the rules
If someone has recommended a SEPP to you, make sure that you know the rules and risks before proceeding.

A compliant SEPP program allows you to avoid the 10 percent penalty tax associated with early IRA withdrawals. Once the SEPP is established, however, it must continue for at least five years, or until six months after your 59th birthday-whichever occurs later. Further, the SEPP withdrawal amounts must be calculated in one of three methods-fixed amortization, fixed annuitization, or required minimum distribution:

-Fixed amortization: The annual distribution amount is calculated by using a projected life expectancy, so that the funds will, in theory, last as long as you do.

-Fixed annuitization: The annual distribution amount is calculated using the account balance and an annuity factor based on your age and life expectancy.

-Required minimum distribution: Annual distribution amounts are equal to your account balance divided by your life expectancy. Payments are recalculated annually.

Any small change in the SEPP structure could trigger the 10 percent penalty, as well as related interest charges. You're allowed to switch once from a fixed payment to required minimum distributions. But you can't switch from required minimum distributions to a fixed method.

Even if you feel comfortable following the SEPP rules, you still need to consider what you're giving up. Taking five or more years of IRA distributions also means foregoing years of earnings potential as well as tax advantages on those funds. If you really need the money, it may be cheaper to take one withdrawal and accept the 10 percent penalty.

Trying to take the SEPP shortcut to retirement may loop you right back into the world of the working. Consult with a tax attorney and advisor who specialize in personal finance before deciding to tap your retirement funds.

Four Personal Finance Resolutions for the New Year

2008-03-11T03:10:00.000-07:00

Make some personal finance promises that you can actually keep in the New Year.

Lose weight. Stop smoking. Learn Jiu-Jitsu. Making a pie-in-the-sky New Year's resolution feels great for about 10 minutes. Then you figure out that these goals were a stretch too far, and you settle down on the couch with a pint of Cherry Garcia and your old friend, Joe Camel. See ya next year, Sensei!

It doesn't have to be that way. Some promises can put more money in your pocket every day, and who wouldn't feel motivated by cold, hard cash incentives like that? Here are a selection of resolutions that can put more money in your pocket.

1. Commit to a realistic budget
Sit down with your family and figure out where your money is going every month. Add up the non-negotiable bills, like car payments, mortgage payments, the kids' college or kindergarten tuition, or the electric bill. Then, for the next 30 days, calculate the variable costs, like food and clothing, gasoline, video rentals, and orange mocha frappuccinos. (You get the idea.)The grand total absolutely, positively cannot exceed the family's combined paychecks. If it does, make cuts in your variable costs, or plan to increase your income. Replace the latte with home-brewed coffee. Turn the light off when you leave the room. Wash the neighbor's car for extra cash.Write the whole budget down, item-by-item-and stick to it. You can have fun discovering where your cash ends up, but it's no fun getting caught under an ever-heavier debt load.

2. Hide your credit cards
Do you use plastic responsibly? If you're paying off your entire credit card balance every month and taking advantage of cash-back or reward points offers, you're good. If not, you're better off paying cash, or using a debt card, whenever possible. Those finance charges add up very quickly, not to mention late fees.

3. Save and invest
This resolution puts today's money in your pocket tomorrow-with compounded interest. Set aside three to six months' worth of living expenses in a high-interest savings account or short-term CD-you just never know when that rainy day comes around. Max out your 401(k) or IRA contributions, and earn tax-free interest until the day you retire. Invest in the stock market, or buy some gold. You won't miss that money today, knowing that it's hard at work growing for tomorrow.

4. Live it up
Okay, this is not a financial commitment, at all. But you deserve to enjoy life. The best finances in the world can't make you happy unless you take some time for yourself once in a while. Think about last year and the purchases that made you unhappy-then resolve not to repeat the same mistakes. Find the highlights of last year, and make more of them in the next.

Four Post-Divorce Financial Tips

2008-03-11T03:08:00.000-07:00

Divorce is no picnic. It can be a legal nightmare with more than its fair share of emotional pain. Here are some tips that can lessen potential monetary damage.

Money matters are a cause of stress for even the happiest of marriages. Unfortunately, for many couples, they can ultimately lead to divorce. Unless you take action once your divorce is finalized, those financial problems could intensify. Take a look at the following steps to avoid common post-divorce pitfalls:

1. Revise your money management. The loss of income that results from a divorce can be ruinous if you're not prepared. To ensure that you can take the financial hit, prepare a budget based on your new income level. You'll also need to establish an emergency fund for cash. One option is to take out a home equity line of credit (HELOC), which is a second mortgage that works like a credit card. You can use the HELOC as your rainy day fund, and tap it only when you need it.

2. During the time you're filing for divorce, protect your credit report. This tip is for the pre-divorce period. To avoid having late payments on your credit report, keep an eye on all open accounts. Even if some are the responsibility of your soon-to-be-ex, see to it that payments are made on time. The short-term loss will be worth it in the long run, because your credit score will be preserved.

3. Divorce yourselves from each other's accounts. Even after a divorce has been finalized, you're responsible for shared debts if your name remains on your ex-spouse's credit records. Take immediate action to close these accounts and transfer balances into separate individual accounts.
Because it carries added weight on your credit score, adjust your mortgage as soon as possible. Lenders may be willing to remove a name from a mortgage, but don't be surprised if they insist that you refinance the loan in the name of the person who'll keep the house.

4. Update insurance and retirement savings. You'll need to reevaluate all your insurance and retirement plans. You may want to change the beneficiary on all your policies.

For the recently divorced, taking care of these potential problems is another step toward putting your divorce behind you. Spend time adjusting your financial accounts as necessary, and be sure that your money management reflects your new lifestyle. If you don't, the grueling ordeal that is divorce could get even uglier

Payday Loans Introduction

2008-03-11T03:06:00.000-07:00

Money tends to burn a hole in everyone's pockets. But for people who are cash-strapped, those dollars seem to burn even faster. Where can someone turn when he runs low on money? Unfortunately, many look to the payday loan, a financial product that's like gasoline to that incendiary cash.

A little too convenient
There's little doubt that the payday loan fills a need in society. Many people are desperate for cash, but don't qualify for a loan or a credit card. They have no choice but to turn to payday loan storefronts that are providing easy access to cash. Easy, but costly.

Here's how the loan works: Borrower X needs money on Tuesday, but won't get his paycheck until Friday. He goes to the payday loan company and signs a post-dated personal check for the amount he needs, plus a fee. In return, the company gives the person the cash, minus the fee. When Friday rolls around and Borrower X gets his paycheck, the lender either cashes the check or tears it up in exchange for cash. Borrower X also has the option of rolling the loan over for a longer period of time, in exchange for more fees.

Killer fees
The payday loan includes extremely high finance charges. If a borrower writes a personal check of $115 to borrow $100 for two weeks, that $15 fee equals a finance charge of 391 percent on an annual basis. That's an exorbitant amount of interest! What's worse…it's usually levied against lower income people who really can't afford to pay the price.

Lenders may argue that, for the borrower who can't get a credit card or a bank loan, the payday loan is the only place he can turn for quick access to money. But the most profitable customers for these loan operations are not people who use the service once or twice; it's the repeat customers who've fallen in a debt spiral from which they don't know how to escape.

Debt's domino reaction
The reverberations of these debt spirals are felt throughout society. Payday loans, for example, were found to be creating serious financial problems for members of the U.S. military, leading the Department of Defense to label payday lenders as "predatory." In October of 2006, Congress passed a law that would cap lending to military personnel at 36 percent APR (annual percentage rate).

This is great news for the military, but it leaves questions unanswered for the market as a whole. Barring further intervention by the government, payday loans will continue to thrive. There are alternatives, but many people are simply too cash-strapped to take advantage of them. If payday loans continue to spread like wildfires, they'll leave scorched consumers in their paths.

Shopping for a personal loan online

2008-03-11T03:05:00.000-07:00

The old adage, "Seek and ye shall find," has been updated to the post-modern, "Search and you shall find it on the Internet." There are great deals for consumers-particularly those who are looking for personal loans.

Personal loans present a viable lending option for borrowers who seek an alternative to home mortgages and credit cards. Thanks to the Internet, these loans are only a mouse-click away. Here are a few advantages to shopping online for your personal loan, and on what to expect during the process:

Access and speed are the keys
The leading benefits of the Internet are greater access to lenders and accelerated decision-making. No longer are you restricted to trudging to the financial institutions near your home. The Internet empowers you to access lenders throughout the country who can provide you with the personal loan funds you need immediately.

Because the Internet allows so many lenders to compete for a loan, you, the consumer, ultimately wins. All this competition drives rates down. A wide range of lenders means that you can find someone to lend you the money, even if you have bad credit.

Begin the bidding war
Consider visiting online lending exchanges. These contain a large number of financial institutions. You'll be able to compare rates and programs. Some exchanges even allow you to submit your loan for a bid from lenders.

To submit a loan for bidding, you'll be required to fill out some personal information, which will produce credit scores for lenders to consider. The score ultimately determines the type of personal loan you'll be offered, so it's essential that you check your credit report before applying to ensure that it's accurate.

Providing online information
Many lenders consider a variety of other factors when you apply online. They'll want to know your personal, employment, and financial history. After you've entered this information online, you'll generally see application results within 24 hours.

Bad credit options
In the event that your credit score doesn't allow you to take out a personal loan, you do have some alternatives. You can seek the services of credit counselors, or you can file for bankruptcy if your situation is dire. Many people have regained their financial footing by using these methods. Just be sure that the companies you work with are reputable.

Personal loans are one of the many financial products to become part of the online shopping mall. The Internet is teeming with lenders eager to share their rates and bid on your personal loan. Online lending is convenient, too. All that it requires is that you fill out a simple online application and, if your credit is in good shape, you'll receive speedy personal loan acceptance and the cash you need.

And the biggest advantage? All this takes place in the comfort of your own home. Talk about a personal touch.

The Art of the Budget

2008-03-11T03:03:00.001-07:00

Budgeting is like art. Both require discipline and perseverance, and both can yield a beautiful end product. The difference is that you don't need talent for good budgeting; you only need determination and a few simple tips.

No one likes going on a diet, but everyone loves the finished product. The same principle holds true when you use a budget for debt management. You may have to stop indulging in items that you can't afford, but ultimately, you won't be disappointed when your bank account gets fat with savings.

To create a budget, take a pen and paper and write down your monthly income and expenditures. Then follow these budgeting tips:

Remember the fun
Paring everything back to the bare necessities is the knee-jerk reaction when you start creating your budget, but it isn't practical or realistic. Life's too short to cut out all the fun. However, if you can pare back those "fun" funds to about 5 percent of your income, you'll be in good shape.

Minimum-only is a major problem
If you have credit card debt, pay more than just the minimum balance. Put some extra dollars toward the principal-otherwise your debt will never go away. You can also take out a debt consolidation loan and combine all your credit card balances into one tax-deductible loan.

Pay yourself first
Set up an automatic savings program where you put aside savings every month. Even a little bit of savings set aside regularly can result in a large chunk of change over time.

Don't let your rainy day funds dry up
It's easy to get into serious debt when your back is up against the wall. Create a rainy day fund, generally 3 to 5 months worth of income, just in case you run into a desperate situation. If you don't, you may find yourself forced into a bad credit mortgage or borrowing from relatives.

Budgeting is like dieting: You begin enthusiastically, but your willpower wanes over time. The key to sustaining a budget-like a diet-is to make it realistic. Include money for entertainment, and save a little bit every month. Once you've adjusted to your budgeted lifestyle, you'll feel good about saving more and spending less.

Funding Dreams with a Personal Loan

2008-03-11T02:58:00.000-07:00

That special project that you've planned is sure to make a difference in your life personally, professionally, or spiritually. Don't let the opportunity slip away with delusions of lottery winnings or a call from Deal or No Deal! If you need to create your own windfall of cash, a personal loan may be your best option.

The personal loan is an extension of credit provided by a financial institution. Unlike car loans, student loans, or mortgage loans, the funds borrowed are not designated for a specific purpose. Potential uses could be business start-up costs, a once-in-a-lifetime vacation, a dream wedding-literally anything you desire.

Types of Personal Loans

Personal loans can be either secured or unsecured.
-A secured personal loan requires collateral. This is usually a savings account, CD, or stock portfolio. Secured loans are easier to obtain than unsecured loans, particularly if your credit is less than stellar.
-An unsecured personal loan requires no collateral, but it will likely carry a higher interest rate and more restrictive terms.

The repayment structures for personal loans usually fall into one of three categories:
-Installment. Similar to a car loan, an installment loan has fixed interest and monthly payments.
-Balloon. A balloon loan is structured with lower monthly payments and a large "balloon" payment due at the end of the term.
-Single Payment. In this scenario, the lender requires just one payment of interest and principal at a future date. The single payment structure is typically reserved for very short-term borrowing.

Obtaining a Personal Loan
Since each lender has its own defined terms for personal loans, it's vital to shop around. Start with your bank; as an existing customer, you may be offered a discounted rate. Online banks and lending websites are also great resources. Collect several offers and compare terms. Once you pick the program that suits you best, your lender will walk you through the borrowing process.

A personal loan can help you make that dream a reality, and it's much easier to plan than winning the lottery. Is that opportunity knocking?

Tips on Applying for Personal Loans

2008-03-11T02:55:00.000-07:00

It's happened to everyone: Some unexpected expense pops up, and you don't have the cash to handle it. Your first instinct might be to reach for that credit card, or call Aunt Betty to ask for a loan. However, neither of these options is ideal. The answer may lie in heading to a local lender and applying for an unsecured personal loan.

Personal loan basics
A personal loan is a monetary advance made to you usually from a bank, credit union or finance company. Most personal loans are unsecured and carry a fixed interest rate. Maturity terms can vary widely, depending on the lender-some programs are as short as six months, and others as long as 10 years. The right time period for you will depend on how much money you need to borrow, what the interest rate is, and what you can afford to pay back each month. In addition to banks and credit unions, online banks and lending websites are also great resources to use for these types of loans.

It's always important to compare apples to apples when applying for a personal loan. Request written proposals from at least three different lenders, and compare each on the following:

-Interest rate (Compare this to the cash advance rate on your credit card, too.)
-Annual fees
-Restrictions on prepayments
-Length of repayment schedule

Scam Protection
Personal loans fall under the credit practice regulations administered by the Federal Reserve Board and the Federal Trade Commission. Unfortunately, the existence of regulations banning unfair or deceptive credit practices doesn't keep everyone on the straight and narrow. Ultimately, your best protection is shopping around and comparing the terms of several different lenders.

If you need money, don't pull out your credit card. And leave dear Aunt Betty alone. A little research may prove that a personal loan will provide you the funds you need with a structured repayment schedule that you can afford.

Is the 125 Percent Home Equity Loan Right for You?

2008-03-10T16:41:00.000-07:00

In an age when athletes give 110 percent, it's not surprising that banks are giving 125 percent. But there are few loans as notorious as the 125 percent home equity loan. And for good reason. Borrowers who have been sucked into the loan's clutches find themselves with much more than quick cash. They're also stuck with an extremely high interest rate and a home that, if sold, could leave them deeper in debt.

So how did such a scary little critter creep onto our financial landscape? To answer that question, you need to understand the 125 percent home equity loan.

Crash course in loan-to-value ratio (LTV)
A lender calculates LTV by dividing a loan amount by the property's appraised value. For example, if you have an $80,000 mortgage, and your home is worth $100,000, your LTV is 80 percent. Generally, loans with high LTVs will command higher interest rates. A lender has to consider how much it would cost to recoup its money if it were forced to foreclose on a house. The lower LTV ensures that a lender can get some equity out of the deal; there's no such guarantee, however, with a higher LTV loan.

With a 125 percent home equity loan, the lender actually lends you more than your home is worth. Because the LTV is sky-high, the loan comes with exorbitant interest rates (13-18 percent and higher) and booming monthly payments. Also, as you cross over the 100 percent LTV threshold, the government no longer allows you to write off the interest payments on your taxes.

Perhaps the biggest reason to avoid the 125 percent home equity loan is that you may be unable to sell your house if you want to move. Remember, you've borrowed more than your home is actually worth. If you want to move into a bigger, or even comparable, house, you'll need to pay off that extra debt you've incurred from the larger loan.

When the 125 percent home equity loan is right
When does this type of loan make sense? It may be an option if you're in dire financial straits as the result of an unforeseen medical emergency or some other severe setback, and the alternative would be to lose your house. A word of caution, however-if you do decide to take the loan, make sure you have a rigorous, disciplined payback plan. If you don't, you could easily fall victim to the downside that comes standard with every 125 percent home equity loan.

Home Improvement Time

2008-03-10T16:38:00.000-07:00

HELOC or Home Equity Loan?

A home equity line of credit-or HELOC-works like a credit card. Moreover, you can access it by using a card, a check, or some other means, depending upon the lending institution's policy. A HELOC is simple to establish and doesn't require the kinds of closing costs that accompany a first mortgage. The lender, in principle, promises to lend you a certain amount of money, and the loan begins the moment you draw any of the available funds. You can use the money as you please, and the interest rate is adjustable. A good choice for a home improvement project, the HELOC is particularly attractive when interest rates are low or in decline.

Rising rates and HELOCs
These days, following a long period of extremely low interest rates, the Federal Reserve is gradually hiking rates. What's more, all indications are that this policy of escalating costs for capital will continue for the foreseeable future. In an environment of higher interest, it often makes more sense to borrow money with a home equity loan, or second mortgage, instead of a HELOC. The benefits are numerous: many of the costs and interest payments are tax deductible; you can pay back the loan over a long period of time; and best of all, the interest rates are fixed, not adjustable.

The attractive home equity loan
With low rates still available (but probably not for long), people embarking on home improvement projects may find the home equity loan to be the most attractive option on the market. Whether you're considering a landscaping makeover, a new roof, or just a few fresh coats of paint, the best tool in your financial toolbox this summer may be the home equity loan.
Home improvement projects improve the quality of your life while you live in your home. At the same time, they are a sound investment for the future, because they add to the market value and equity of your property.

If you've been waiting to improve your home, this long, hot summer may be just the time to make the improvements that will make the long, cold winter more bearable and, potentially, more profitable.

Pay off Your Mortgage with Home Equity Loan

2008-03-10T16:37:00.000-07:00

Home equity loans are sometimes ideal for those who have small balances remaining on their mortgages and want to avoid the cost associated with refinancing. If you only owe a few thousand dollars and can pay that all off at a lower rate without high fees, it can be a clever financial tactic.

Better than a mortgage refinance
Consider this scenario: A homeowner has property worth $300,000, and a 30-year, 8.5 percent conventional mortgage with an outstanding balance of only $30,000. If the homeowner decides to refinance in order to drop to a lower 6 or 7 percent rate, the mortgage refinance fees alone might cost five to 10 percent of the amount of the remaining balance. This would make a mortgage refinancing an unwise choice.

One smart solution to this problem would be to use a home equity loan and borrow the 30 grand. The mortgage can be entirely paid off without incurring steep refinance fees, and the process for securing the funds is relatively simple and fast when compared to ordinary refinancing.

Home equity loans are available from most lenders, and they can be paid off gradually, over a period of decades. For those who owe a relatively small amount on a high interest rate mortgage, converting to a home equity loan to pay off the balance may be a great way to save substantially over time, while also reducing the life of the loan. If you plan to retire in 15 years, for example, you can schedule the payoff of your home equity loan to coincide with retirement, in order to retire with extra savings and no house payment.

The versatile HELOC
Another alternative is to use a home equity line of credit, or HELOC. The big advantage with a HELOC is that, generally speaking, only payments of interest, not principal, are required during the first few years of the loan. That can significantly reduce monthly payments, in a similar way to the popular "interest only" mortgages. A HELOC will carry an adjustable rate, however. For those who expect rates to continue to rise and want to pay over a long period of time, a home equity loan with a fixed rate is a more predictable and worry-free option.

Paying off your mortgage with a home equity loan may seem strange. But in some circumstances, it may pay not to be a stranger to good financial sense.

Financing a Second Home? Use a Home Equity Loan

2008-03-10T16:34:00.000-07:00

When you take out a loan to buy a second home, banks will scrutinize your credit reports and income documentation very closely. They want to ensure that you have sufficient income to meet all your obligations. But if you have a good credit score and a valuable first property to use as collateral, getting approval for a home equity loan is usually an easy process, and may be a less expensive and speedier one than opting for a traditional mortgage loan.

Advantages of Home Equity Loans
By using a home equity loan, you may be able to avoid some of the closing costs associated with originating a completely new and separate mortgage. There are also specific tax benefits, in the form of deductible expenses, which are allowed for those who take out home equity loans. If you do a little homework and crunch the numbers, you may discover that a second home is less expensive than you thought, and comes with interesting perks. One of the best benefits is that you can rent out your second home to tenants when you're not using it as a vacation property for your own family.

Second Home for Income Production
A second home can actually help you earn extra income. If you buy from someone who rented or leased the house for profit, you can prepare a financial statement based on the past income history of the property and show it to your lender. By reviewing the records, a bank or mortgage company will see that the property will probably not be a financial liability, but may actually add extra net income to your bottom line.

You may also want to hire a professional appraiser to do an objective market analysis of the property. By comparing it side-by-side to similar income-producing properties in the same neighborhood, an experienced appraiser can ascertain a home's future income potential with remarkable accuracy.

If you're fortunate enough to be able to afford a second home, you're smart enough to investigate a variety of ways to pay for it. A home equity loan may be the most intelligent way to go. To paraphrase an old expression, "Home is where the equity is".

Versatility of HELOCs

2008-03-10T15:09:00.000-07:00

Your home's equity can be one of the best ways to find capital when funds are scarce. And the best way to tap into this equity is with a home equity line of credit (HELOC), which gives you the flexibility of a credit card and the tax-deductions of a mortgage. Since a HELOC allows you to draw funds for myriad reasons, it has become the Swiss Army Knife of financial instruments.

One credit line, many uses
Popular reasons to tap a home's equity include home improvement, debt consolidation, a second home purchase, vacations, and college tuition. Many small business owners will opt to use a HELOC instead of applying for business loans, because the process is easier and less expensive.
In recent years, debt consolidation has proven to be an extremely popular use for the HELOC. It can drastically reduce a borrower's monthly payment by offering lower interest rates than credit cards. On the flip side of the coin, people who are debt-free often use the HELOC to buy a car, taking advantage of the tax-deductibility of the interest payments.

Rainy day fund
It's a basic rule of thumb to keep three to six months of living expenses stowed away in a liquid account as a rainy day fund. Even though it's a great savings habit, consumers are forsaking savings, and using a HELOC as a source for emergency funds. If you choose this route, make sure the lender you select doesn't charge a fee just to keep the line of credit open. Just because you have a rainy day fund doesn't mean the institution should rain on your parade.

Fee Free
HELOCs can be fee-free. Avoid a lender who wants to charge you for writing checks or proposes exorbitant closing costs. Some lenders might require an appraisal; but there are plenty of lenders who will waive the appraisal fee. The cost of writing checks should also be free of charge.

Convert to a fixed-rate loan whenever you want
Since HELOCs are tied to short-term interest rates, they may rise suddenly. If they do, you may find that a fixed-rate home equity loan can save you money in interest payments over the long-term. If you choose to convert, expect a higher monthly payment. There may also be additional closing costs, so do the math to see if this move is right for you.

These features, as well as caps on interest rate increases and no prepayment fees, are all versatile benefits that underscore the HELOC's Swiss Army Knife reputation. About the only thing you can't do with it is whittle, or use it to spoon up beans by the campfire. Short of those tangible benefits, the HELOC could be the versatile borrowing tool for just about anything you need.

Home Equity Line of Credit

2008-03-10T15:05:00.000-07:00

How Much Should You Borrow?

If you need extra cash, a home equity line of credit may be the right instrument for you. It gives you the flexibility you need, with minimal closing costs and the option to pay interest only for the first five to 15 years. However, you must decide the amount that's appropriate to borrow.

Setting Your Limits
The HELOC limit depends on how much equity you own in your home. Let's say the house appraises at $200,000. If your first mortgage balance is $80,000, your equity is $120,000. A second loan that's secured by this equity, such as a home equity loan or a home equity line of credit, can usually have a credit limit as high as 80 or 90 percent of this equity. For our example, we'll opt for a 90 percent HELOC, which would enable you to apply for a maximum credit line of $108,000.

One very important thing to remember is that a home equity line of credit is not a traditional loan. You don't apply for a loan amount, technically speaking, but rather for a credit limit. Once the credit line has been approved, you can treat it like a credit card. Borrow the money when you need it, and replenish it when you can. In the meantime, all you need to pay is interest on the amount you borrow. You're under no obligation to borrow every last cent of that line of credit-though you can if you need to.

How To Use Your Credit
It may be best to simply apply for the maximum amount that you qualify for. This way, you have a cushion to protect you in case of emergencies. You may not need all of that money now, but it's there if you need it later. Closing costs for HELOCs are minimal. However, many states require that you pay a one-time mortgage tax at closing. The higher the credit line, the higher the tax. As a result, you may not want to opt for the maximum amount.

There also may be direct benefits to establishing a high credit line, even if you don't plan to use most of it. Credit bureaus like seeing lots of available credit that you haven't used. A largely unused HELOC may, therefore, improve your credit score.

Once you're approved for your credit line, you still don't have a license to go out and spend it all. Every dollar spent will eventually have to be repaid-with interest. Get the highest credit limit you feel comfortable with. Then be disciplined about how you use it. Your wallet will thank you later

Using a Home Equity Line of Credit for College Tuition

2008-03-10T15:03:00.000-07:00

There's nothing as exhilarating to parents as the thought of their child heading off to college. But it can be equally depressing financially. That's because college tuition rates are skyrocketing. Annual tuition increases of nearly 10 percent at public universities are easily out-pacing inflation's long-term 3 percent average yearly increase. Tapping into retirement accounts for tuition might jeopardize retirement plans. As a result, parents are turning to HELOCs for tuition help.

Say Hello to a Home Equity Line of Credit
A HELOC is a line of credit borrowed against the equity on your house. It differs from a home equity loan in that you don't need to borrow the entire lump sum at once. You borrow the money when you need it. Suppose you need $3,000 for tuition, and you have a $10,000 home equity line of credit. Simply take out the $3,000, which allows you to avoid paying interest on a large, lump-sum loan.

The interest rate on a home equity line of credit is adjustable, and generally tied to the prime interest rate. If the prime rate go up, so does your interest rate. However, the prime rate is generally not as volatile as some indices, and many HELOCs can be converted to a fixed-rate loan if you can't stomach the interest-rate uncertainty. And you can take heart in knowing that the interest you pay on a home equity line of credit is tax deductible.

Flexibility Today, Retirement Tomorrow
The beauty of the HELOC is its flexibility. Basically, the closing costs are minimal to open a home equity credit line, and access to funds is simple. Write a check, or perform a web-based transfer through your financial institution. Presto, you've got college tuition covered.

There's also a growing school of thought that believes that using a HELOC for college tuition is a prudent move if your college savings are coming at the expense of your retirement funding. Keep in mind that if you have many years between now and retirement, you can always earn more money to pay off a HELOC. No one, however, will lend you money to fund your retirement.

When you're considering how to pay for your child's college education, do plenty of research and find out how much you'll need to save. If you can save plenty for retirement and sock away a little each month for the rapidly expanding tuition, you're in a good spot. But if you find that you need to borrow money, the flexible HELOC might be just the ticket to help finance your child's college adventure.

Using a Home Equity Line of Credit to Reduce Debt

2008-03-10T15:00:00.000-07:00

A home equity line of credit is a loan that is taken against the equity in your home. In practice, however, it operates more like a credit card than a mortgage. The collateral on the loan is your house and, depending upon where you live, local lending laws will regulate how much you can borrow.

The interest charged on a HELOC is usually equal to the prime rate plus an additional amount charged by the lender. The better your credit rating, the more attractive the interest rate generally will be. Therefore, it pays to shop around and find the best deal in town. At MortgageLoan.com, we can help you connect to a lender who can help you meet your specific needs.

Home Equity Line of Credit vs. Credit Cards
How is a home equity line of credit different from a card line of credit? First, you're borrowing against the equity in your house. Whereas your credit card limit might top-out after you spend a few thousand dollars, a HELOC might be worth almost as much as your house. If, for example, your home equity line of credit is $150,000, you can borrow that amount and use it for whatever you want.

Your HELOC will have an adjustable rate, and the rate is normally calculated based on the going rate at the time you withdraw funds. You decide when you want to use the HELOC, and then access your credit line by writing a check or using a special debit card.

Debt Consolidation through a HELOC
One of the most popular uses of a home equity credit line is to consolidate high-interest credit card balances, and pay them off before the penalties, interest payments, and annual fees become an unwieldy burden. Many homeowners go into debt while paying for necessities, like furniture, landscaping, and appliances. Soon, they have maxed-out their credit cards, and the outrageous interest rates charged by credit card companies accelerates until the debt is out of control. By using a HELOC, it's possible to pay off all credit cards, and replace them with a single, easy-to-manage loan. And the HELOC can be paid off gradually, over a long period of time.

Check around for the best rates. A home equity line of credit can free you from debt, and help you improve your credit rating at the same time.

Examining home equity loan rates

2008-03-10T14:56:00.000-07:00

Home Equity loan rates

Home equity loan rates fluctuate daily just as all mortgage rates. They also rise in tandem with interest rates set by the Federal Reserve, which has raised rates 15 consecutive times since rates hit 40-year lows in 2004. Home equity rates are important, however, if you are serious about entering into a home equity loan you must examine any particular loan program in its entirety. Most home equity loans come with variable interest rates, some come with low introductory rates that can jump up after a set time period, and few come with fixed rates.

Home equity loans and their rates and fees differ greatly from program to program so it pays to speak with several lenders and expose yourself to a number of different programs.

Money costs money, but how much?
With all the different ways home equity loans are structured it can sometimes be tough to understand how much money you are spending on the actual loan. Some loans have upfront fees while others have a balloon payment at the end of the loan's life. Home equity loan rates can fluctuate greatly throughout the life of the loan as most home equity loans are not fixed. Many offer very low introductory rates that can jump up after that introductory period is over; be sure to understand the periodic cap and lifetime cap, they are the limits that specify the amount the interest rate can change during one period and the entire life of the loan respectively.

When looking at different home equity loan rates check the Annual Percentage Rate (APR) which indicates the cost of credit on a yearly basis. Remember that the advertised APR for home equity loans is based on interest alone, to get the full picture you must look at all fees associated with the loan such as points and closing costs. This is especially important when looking at a home equity credit line versus a traditional 2nd mortgage, where the APR includes the total credit costs for the loan.

Differing rates, programs and more
The range differing home equity loan rates and the programs in which they are structured can be quite exhausting. This is why when choosing a home equity loan it really pays to speak with multiple loan professionals and expose yourself to several programs. Compare home equity loan rates today with MortgageLoan.com's free quote service to put yourself on path to finding the right home equity loan for you.

Try a Home Equity Line of Credit

2008-03-10T14:52:00.000-07:00

It's a good idea to have an emergency fund to fall back on in case you encounter unanticipated financial difficulties. Three to six months' worth of living expenses is the commonly accepted rule of thumb. Do you have these funds set aside in case an unforeseen disaster makes an unexpected appearance?

Flexible Power
An emergency fund doesn't necessarily need to be all in cash. A home equity line of credit is a savvy alternative. With a HELOC, you get direct access to your home equity in case you ever need it; but until you actually use it, there are no payments, interest, or debt. That flexibility is the strongest argument for this type of financial instrument.

When you do run into one of life's not-so-little surprises and start drawing from your credit line, you may appreciate the low interest rate that a HELOC carries. It's generally much lower than credit cards, and often better than traditional home equity loans. And, in most cases, you're only required to make interest payments during the first few years of your borrowing (the "draw period"). While it's still a smart long-term choice to pay down the actual balance, the pressure on your finances during times of need is more bearable when you have lower payments.

In the Interest of Interest
A HELOC will have an adjustable interest rate. As the federal lending rate rises, so does your interest rate. In a rising interest rate environment, this can become expensive. On top of that, your repayments will be larger the more you draw from the credit line; so this option may not be for you if you require absolutely predictable monthly payments.

Since your home equity line of credit is secured against your home, some or all of your interest payments may be tax deductible. It depends on the home's value and the existence of other equity debt. Ask a financial professional whether your interest payments will qualify.

If you have a lot of equity in your house, the credit limit on a HELOC can be very high, which makes it perfect for emergency use. You'll be able to handle most of what life throws at you.
Finally, you don't want to pay a lot of fees for an emergency fund. Look around for a HELOC with low or no closing costs, no fees for actually using the credit, and no early repayment fees. Getting a leg up on financial flexibility doesn't need to cost you an arm and a leg.

Home Equity: Understanding Bridge Loans

2008-03-07T09:20:00.000-08:00

You've found the perfect house for you and your family, but the house you're living in hasn't sold yet. Where are you going to get the money to make sure that the new house doesn't get away? A bridge loan, although risky, may get you through these troubled waters.

Remember when you were young and on your family vacation, and your parents would drive over a very high, narrow bridge? You were petrified and thrilled at the same time. Bridge loans, although having nothing to do with water, can elicit the same feelings. These instruments give people the opportunity to buy the house of their dreams before they've sold their old one-but the risks can be dizzying.

Building the bridge

There are two types of bridge loans. The first pays off the mortgage on your current home and makes a down payment on the new one. This means that you pay the mortgage only on the new property, agreeing to repay the bridge loan when the old home sells. The second type of bridge loan is more risky, allowing you to borrow against the equity of the current home to use for your down payment. The scary part is that while you're paying off a bridge loan, you're still responsible for the mortgage payments on both homes.

Short Term Benefits

The bridge loan can provide that short-term influx of cash that you need to secure your new home. Although the loan typically requires interest-only payments, the rates and fees may be higher and carry significant pre-payment penalties. Before going down this path, talk to a real estate agent to find out how long houses such as yours are taking to sell. If the market is really slow, determine if you have the finances to pay two mortgages for that length of time. The risk-and it's substantial, especially in this buyer's market-is that your current home will be slow to sell, leaving you with essentially two mortgage payments for some time, straining even the best breadwinners.

The alternative: A HELOC

A home equity line of credit (HELOC) would give you enough money for the down payment on the new house and you're your closing costs, but is much less risky than the bridge loan. In order for this to work, you must apply for the HELOC before you put your house on the market. Many lenders won't let you borrow against the equity in your current home if it's for sale.Going over a bridge is always breathtaking.

It's the same with a bridge loan. It could be the very thing you need to secure the house of your dreams, but weigh the risks carefully. Other alternatives, like dipping into your home equity, may save you many frightening moments while getting you to your destination safely and happily.

Home Equity Loan Tips By: Amelia R. Frost

Rude Awakening Awaits Home Equity Loan Holders

2008-03-07T09:17:00.000-08:00

Countrywide and other financial institutions are notifying thousands of homeowners that their credit is shrinking as home prices sag. Some are revoking the entire line of credit, with little or no advance warning.

If you have an active line of credit, be forewarned. You may have the rug yanked out from under you, and be in for a tumble. Tens of thousands of homeowners with home equity lines of credit (HELOCs) are starting to feel the impact of the mortgage meltdown. Like a grouchy bear unexpectedly awakened during winter hibernation, this development has reared its ugly head within the ailing real estate market.

Pulling the HELOC plugNow, lenders are sending notices to scores of customers, informing them that they need to stop borrowing money against their HELOCs. Home prices have dipped so far down, the collateral that houses represent to lenders no longer exists. As a result, lines of credit have evaporated into thin air. But Americans have recently gotten into the habit of relying on their real estate as a cushion against any financial setback. As the economy has slowed, withdrawals against home equity have quickened.

Home equity not a personal ATMMany economists and business journalists have been referring to houses as ATM machines; but now, the ATMs are getting unplugged. For many homeowners, the tightening of credit could not have come at a more challenging time. Tens of thousands are fighting off delinquency and foreclosure, thanks to vital cash flow from home equity loans and lines of credit.

Their experience now is like getting stranded in a foreign country on a vacation with a cancelled credit card, and no cash to tide them over until they return. In this case, the vacation started when real estate inflation creating an overabundance of overnight wealth-at least on paper. But now that the bubble has burst and the subprime mortgage sector has gone down in flames, paper millionaires have morphed into real life paupers. Just as unrealized gains in the stock market can be erased by a single day's drop, real estate wealth based on appraised market value can also get wiped out as a bubble bursts.

Homeowners are left out in the cold with their credit frozen by overcautious lenders trying to rein in the imaginary riches.Countrywide Financial sent about 120,000 letters to customers in January, letting them know that they can no longer borrow against their HELOCs. Similar actions have been taken by other lenders, including Texas-based USAA Federal Savings Bank.

The cutbacks affect a variety of home equity loans or second mortgages, and also mean that some institutions may curtail or even suspend issuance of new lines of credit. Chase Home Lending, a subsidiary of gigantic JP Morgan Chase & Co., for instance, will soon impose new restrictions regarding which customers qualify for a line of credit. In some of its jurisdictions, Chase has already dropped the loan to value limits on equity loans by 5 percent from previous levels.

Home Equity Loan Tips By: Tom Kerr

Stellar Time For Home Equity Renovation Loans

2008-03-07T09:13:00.000-08:00

A depressed economy may not be good for the mortgage or housing markets, but it's a great time to renovate. Prices for building supplies are going down, contractors are hungry for work, and interest rates are ridiculously low, thanks to recent rate cuts.

If you've been thinking of using a home equity line of credit (HELOC) or home equity loan to remodel or renovate, there's no time like the present to act on those dreams. Housing prices are down, and mortgage money is tight. Sales are slow, and even the National Association of Realtors admits that we're probably a year or more away from a significant rebound. But if you've accumulated equity in your property, this is a jewel of a time to convert a portion of that equity into tangible upgrades.

Contracting bargains

The Joint Center for Housing Studies at Harvard University estimates that some 700,000 fewer homes will be built this year than were constructed in 2005. The Commerce Department also reports a 25 percent drop in single-family house construction compared to about a year ago. That basically means that you can hire contractors for a discount, because they're all dressed up for work with nowhere to go.

Offer them a job during this lull in the action, and you can get projects finished much less expensively now before the market bounces back. Once business gears up again, those same contractors will probably be too busy to even return phone calls, or take time out to provide bids. Architects are willing to take on smaller jobs that they would have passed on a couple of years ago, and other professionals in real estate-related fields are almost all eager for work opportunities.

You can find bargains on everything from electricians to interior decorators. Consider the cost of raw materials, also, in addition to the savings on skilled labor. Usually, construction materials go up in price, so you have to factor in an extra 20 percent to accommodate inflation as a project progresses. But, for example, the price of "oriented strand board," a substitute for conventional plywood, is about half of what is was just three years ago. That's a remarkable reversal, and the overall industry price trend may save you considerable cash.

Growing your home equity

Assets added now can translate into greater profits with higher margins once the economy regains traction, and using equity to grow equity is a time-tested strategy for increasing wealth.
Homes that are already prepared for market will get top dollar, as tardy homeowners scramble to do needed repairs and long-overdue facelifts. Or, perhaps you just want to improve your quality of life by enhancing your primary residence or vacation home.

Use a home equity loan to finance the work, and you may qualify for additional perks in the form of tax exemptions for interest payments. Whatever your motivation, scheme, or plan, the time is ripe for making capital improvements to real estate.

Home Equity Loan Tips By: Tom Kerr

Americans Irresponsible with Home Equity

2008-03-07T09:10:00.000-08:00

Some homeowners are washing their hands of mortgage debt. They simply mail their house keys to the bank, and let the lender worry about how to create tangible assets from properties that have no actual equity.

If you lend money without securing the loan with collateral in the form of bankable equity, you run the risk of not collecting your debt. That's exactly what's happening in the lending industry. Mortgage companies, however, have nobody to blame but themselves.

Home equity abuse

In recent years, many homeowners were steered, or even pressured, into loans that they couldn't afford, lured by down payments involving little or no cash. Starting with no equity accelerates the path to foreclosure when prices drop; and prices have dropped so steeply, that the lows are setting new records almost every time the data is updated. Now, some homeowners are walking away from mortgages because they have no equity to lose, and lenders have little or no leverage to discourage the practice.Economists, for example, are citing evidence of mortgage holder mutiny as a factor in the widening loan sector crisis.

As was sometimes the case during the real estate downturn in the late 1980s, some homeowners have adopted a strategy of creative debt management that involves walking away from red ink without a second thought. Rather than pay off their mortgages, they incur a severe bruise on their credit, and leave mortgage lenders holding the bag. The problem for lenders is that the bag is empty, because it never held any substantial equity in the first place.

No way out

Known as "willful default," the practice of renouncing payback responsibility in favor of a walkout often happens when consumers feel that they have no other way to salvage their credit, and have nothing left to lose. Home values are plummeting, erasing the equity of millions of homeowners who suddenly owe more on their mortgages than their homes are worth. This condition of negative equity leads to feelings of resentment and frustration. Consumers may feel that it's unfair for them to owe money on a loan that's worth more than their property. Not willing to give lenders an unearned profit, they simply walk away, letting the lender pick up the pieces and take the loss.

The price of home equity irresponsibility

There's always a price to pay for having a foreclosure on your record. With a paltry credit score, homeowners who've walked away from obligations will likely have trouble starting anew. Then again, every market operates on the law of supply and demand. If millions of consumers enter foreclosure, lenders will have nobody left with good credit to recruit as a customer base.

Eventually, lenders will be forced to ease their standards, as the threat of having a foreclosure in one's background loses its teeth and clout. With tens of billions of dollars in losses, lenders are already feeling somewhat powerless.

Home Equity Loan Tips By: Tom Kerr

The Right Home Equity Strategy for Excess Cash

2008-03-07T09:08:00.000-08:00

Some experts tout the wisdom of paying off your mortgage early. Others say it's better to stash excess cash in an emergency fund. How do you know which strategy is right for you?

Managing your personal finances can be like an extreme juggling act. There you are, trying to keep your current expenses paid, while simultaneously setting aside money for the future, absorbing unexpected challenges like car accidents and plumbing leaks, and spending occasionally on yourself. All this without dropping any of the balls in the air! As you deftly keep them airborne, expert advice is being tossed at you through email, your morning paper, the evening news, and Internet headlines. No wonder you're confused about how to manage your excess cash.

If you have money left over every month after you pay your bills, feed yourself, and put gas in the car, the first thing you should do is count your blessings. Next, decide which excess cash strategy works best for you: paying off your mortgage early, or building up your emergency savings fund. Each has its pros and cons.

Paying down your mortgage

If you make extra principal payments on your mortgage, you'll pay off your debt early, build your home equity more quickly, and save thousands in interest costs. But you'll also be tying up your money in your home, which is not a liquid asset. In the current lending environment, lenders aren't offering 100 percent home equity loans anymore. That means that if an emergency arises, you can only convert some of it into cash. And if you lose your job, you may not be able to convert any home equity into cash, because you won't qualify for the loan.

Saving for a rainy day

If you put that extra cash into a high-rate savings account instead of making extra principal payments, you'll have the money available if you need it. You'll also save enough to pay off the mortgage early, if that's your goal. But if spending is your weakness, that big savings account balance might never materialize.

Split the difference

There's one more option that's ideal for homeowners who don't like putting all their eggs in one basket. Let's say you have $400 to spare each month. Put $200 in a high-rate savings account, and pay an extra $200 on your mortgage. As an added measure, you might also consider opening a home equity line of credit now, so that it's in place in case financial disaster hits. Then you'll have access to liquid cash, as well as home equity funds. And, by making the extra principal payments on your mortgage, you'll be saving on your interest costs, too.

Regular investments in your mortgage, your deposit balance, or both, will vastly improve your financial situation in the long run. Of course, your circus act will continue, but eventually, it will be easier to manage.

Home Equity Loan Tips By: Catherine Brock

Home Equity: If You Use It, You Lose It

2008-03-07T09:01:00.000-08:00

Home equity is a powerful financial tool, as well as a resource that's difficult to replace.

In this election year, you might hear environmentally-friendly politicians arguing over the use of non-renewable resources. Of course they're talking about coal and natural gas, but maybe home equity should become a part of that discussion.

Home equity basics

Home equity is the difference between your home's market value and the amount of outstanding mortgage debt that you owe. If your home appraises at $450,000, for example, and you owe $200,000 in mortgage debt, the value of your home equity is $250,000.

This $250,000 is an asset that can be used to secure additional borrowing. If you need to borrow money for a home remodel, your kid's college tuition, or a new car, you can do so on the strength of your home equity. You can't borrow the entire $250,000, but you can generally borrow 70 to 75 percent of your home's value. In our example, that equates to $315,000 to 337,500.

Accounting for the $200,000 of first mortgage debt, we arrive at home equity borrowing power of $115,000 to 137,500.

If you're wondering why you can't borrow against your entire equity, just consider the prospect of property value declines. Lenders don't want to be stuck holding collateral that's worth less than the amount of debt taken out against it. Therefore, the lender must leave that cushion of 25 to 30 percent between the home's value and the allowable debt amount.

Downside of home equity

Returning to our example, an influx of more than $100,000 of cash to a household can be cause for celebration. But it doesn't come without a downside. Once you fund that home equity loan, you reduce your borrowing power to zero. And you can't replenish that borrowing power until your home's value goes up, or your debt goes down. In today's economy, both of these can take a considerable amount of time.

If you aren't confused enough, there's one more factor to consider. Sometimes, it's hardest to obtain a home equity loan when you need it most. If you suffer a loss of income, for example, mortgage lenders aren't going to provide the credit that you need to get through those rough times. For this reason, some homeowners open a home equity line of credit (HELOC) while they're still gainfully employed. HELOCs are appropriate for this purpose because they allow you to borrow in increments as needed.

In summary, home equity is a lot easier to use up than it is to replace. This means that you should have a very good reason for flexing that home equity borrowing power. Just so you know, conventional wisdom says that an exotic vacation and flashy jewelry don't qualify as good reasons. The best strategy is to treat that home equity as a precious, non-renewable resource; that way, it'll be there for you when you need it most.

Home Equity Loan Tips By: Catherine Brock

PLUS Loan - Why Choose a PLUS Loan?

2008-03-06T03:20:00.000-08:00

A PLUS Loan can be your ticket into college, but it really has more to do with your parents than it has to do with you. What exactly are PLUS Loans? Well, basically, a PLUS Loan is a loan that must be obtained by your parents in order to pay off your educational tuition. If you are a dependent of your parents and a future undergraduate student at any college or university within the country, a Federal PLUS Loan might be the right choice for your family. Additionally, your parent's credit history must be in good standing in order to receive a PLUS Loan for you.

Why A PLUS Loan Works

Why should you choose a PLUS Loan when going into college though? Aren't there better options for you? Often times, college students have little to no credit history, and they themselves cannot afford to put a loan onto their credit history. Scholarships can only take most students so far, and parents/students usually cannot bring in enough income to pay off a college tuition, especially at most private universities. When this becomes the case, a PLUS Loan offers the best alternative to the student taking out a loan, as parents can use their established credit to help students through college without a hitch.

Supplementing Your Aid

The best part about a Federal PLUS Loan though is the fact that it helps you to cover any expenses at school that are not already being covered, For instance, if your yearly tuition at school is $10,000, and you receive $5000 a year through some other source of financial aid, a PLUS Loan enables you to pay the other $5000 without worry. Additionally, applying for a PLUS Loan is as simple as filling out your FAFSA form, which can be obtained at your school's financial aid office, and sending it in. PLUS Loans are dispensed directly to your school and leave you with no worries during the school year. If you are thinking of options for paying your way through college, think about applying for a PLUS Loan.

Student loan Tips

No-Cost Student Loan Consolidation

2008-03-06T03:11:00.000-08:00

A no-cost student loan consolidation - doesn't that just sound too good to be true? Think about it. You have just accrued thousands of dollars in debt through student loans after 4 years of college, or possibly even more. Then, a company offers to take all of your loans off of your hands, put them into one central loan, and do it all for free! Well, while it might not be too good to be true, it all depends around your particular situation, which could make this a "free" process, or could still work out to the benefit of the consolidation company that you are working with throughout the process.

How A Student Loan Consolidation Works

Here is how the student loan consolidation works. You have used up thousands of dollars in student loans to pay your way through college, obtain housing throughout college, and pay for other odds-and-ends while attending college. A student loan consolidation then takes all these different loans, pays for each of them, at which time you then pay the student loan consolidation company for the total amount of loans taken out during college.

Example of Student Loan Consolidation

If you were to have outstanding loans of $5000 to one company, $6000 to another, and $9000 to a third, the student loan consolidation allows you to owe $20000 to one company, rather than to three. This can save you money in the long run, as these companies also may be able to offer you a competitive interest rate, which means you will be paying less overall for your student loans in a shorter amount of time and to only one company.

Potential Student Loan Consolidation Problems

Problems can occur with student loan consolidations if you catch a deal that does not work out favorably to your situation. For instance, if you choose a no-cost student loan consolidation that does not offer you a low interest rate, you could actually end up paying them more than you originally would have! It is important that you choose a company not for their "no-cost" approach, but for their willingness to get your student loans paid off with a consolidation that promotes a quick pay-off with minimal interest rates.

Student loan Tips

Private Loan Consolidation

2008-03-06T03:04:00.000-08:00

College life teaches you how to stretch a dollar, how to make a pizza cover breakfast, lunch, and dinner, and how to get the most out of your money. That said, when your college education is over and achieved, the student loans following it should not last a lifetime and follow you throughout your career!

Consider Consolidating Your Loans and Save

Rather than lug around student loans for years to come, why not consolidate all your different student loans into one private loan consolidation that makes it easy for you to pay off your student loans with just one low monthly payment every month. Six months after you graduate, you can be sure that creditors will be banging down your door, looking for your first payment towards your student loans. Whether you borrowed from a bank, the government, or through some other private means, student loans add up quickly. A private loan consolidation allows you to take all of your student loans and throw them into one general debt - this way, you can make payments towards that debt and only have to deal with one private company, instead of 2, 3, 4, or 5 loan firms and/or creditors.

Where To Find A Consolidation Loan

Best of all, there are a plethora of companies out there willing to give you a private loan consolidation. They will analyze your student loans, see where the loans came from and what interest percentages the loans carry, and then they will get on the project immediately, possibly saving you hundreds, even thousands of dollars over the next few years! Stop paying money out to creditors who are holding you hostage with their high-interest fees. Obtain a private loan consolidation today from a company that can help you to save money and eliminate your loans quickly as well. Research on the internet or speak with a financial advisor today and find the private loan consolidation that will put all your debt into one small easy and convenient package - which can disappear before you hit mid-life!

This article is distributed by NextStudent. At NextStudent, we believe that getting an education is the best investment you can make, and we're dedicated to helping you pursue your education dreams by making college funding as easy as possible. We invite you to learn more about how to get Private Loan Consolidation at NextStudent.com.

Student loans Tips

College Loan Consolidation

2008-03-06T02:54:00.000-08:00

Why NOW is the Best Time ?

If you are thinking about using loan consolidation to possibly lower your monthly student loan payments, then now is the time to start consolidating and lowering those payments. Never in recent history have the interest rates on student loan consolidations been quite as low as they are these days. What does that mean for you? Quite simply, you will be receiving the best available deals for debt consolidation when you choose to consolidate your student loans now and here. Whether you have just a small amount of student loan debt or a very large amount, consolidation can start helping you to lower your monthly payments NOW if you get started on it right away.

Start on the 'Net

Where is the best place to turn when looking to receive consolidation on your student loans quickly and easily? A good place to start might be the Internet. Research exactly what student loan consolidations can do for your financial status. Secondly, visit a web site like NextStudent.com, where you can learn about the latest trends in debt consolidation for student loans. Additionally, you can contact their financial advisors, who will walk you through the debt consolidation process and make sure that you save as much money as possible paying back your student loans.

Now in the Time

Once you have started the process, you can sit back and know that student loan consolidation is saving you hundreds of dollars a year on repaying your student loans. While the process is not complex, it is important for you to work with a trusted name when using debt consolidation. Some companies will simply rip you off and end up costing you more money than they save. You may be at a disadvantage with your debt hanging over your head, but that does not mean that you cannot receive a great deal through consolidation! Consolidate NOW and start saving with the ultra-low consolidation interest rates out there these days. You will thank yourself in a few years.

This article is distributed by NextStudent. At NextStudent, we believe that getting an education is the best investment you can make, and we're dedicated to helping you pursue your education dreams by making college funding as easy as possible.

Student loan Tips

Student loans are better than credit cards

2008-03-06T02:47:00.000-08:00

You need some more money for college expenses this semester. Do you whip out a credit card to pay for your books, or do you apply for a federal or private loan? Well, consider the options -

-With a federal loan, your interest rate will be low (around 5%) and your payments will be deferred until 6-9 months after graduation.

-With a private loan, the interest rate will be slightly higher than with a federal loan but will still be lower than average. In addition, you will only need to make interest payments until after graduation.

-With a credit card, on the other hand, the interest rate can be as high as 21%. Interest begins accruing almost immediately, and you need to begin paying off the bill the next month.

This is not to say that credit cards do not have a place in your college life. It is good to have one national card (Visa, MasterCard, Discover) on hand to help you build a positive credit history and to provide security in emergencies. When you decide to apply for a card, compare annual fees, interest rates, and introductory offers. And to keep yourself out of debt, try to-

-Pay your balance each month to avoid interest charges

-Pay your bill on time to avoid late charges

-Avoid cash advances, which come with large finance charges and interest that begins accruing immediately.

Student loan Tips

Parent Loans or Student Loans

2008-03-06T02:38:00.000-08:00

what is going to be best for my child?

At least 20% of college students need some type of loan to help pay for their college education. Such a statistic can lead to students graduating with an unmanageable debt load. An alternative is for parents to help out by taking out loans themselves. But which is the better option - student loans or parent loans? Each has distinct advantages and uses.

Federal student loans

Federal student loans have the lowest interest rates and best repayment options. If you need to take out loans and you qualify for federal loans, this is your best choice. Just be sure to accept only the funds you need, even if you are offered much more. Parents can always help their children pay off these loans once repayment begins after graduation.

Federal parent loans

PLUS Loans ( Parent Loan for Undergraduate Students) are another loan option that comes with low interest rates. If you are a parent with dependent students attending college at least part-time and you have a good credit history, you are eligible to receive a PLUS Loan. These loans are not needs-based. You can borrow up to the total cost of undergraduate education expenses, minus other financial aid already received. Unlike federal student loans, payment is not deferred until after graduation; instead, your first loan payment will be due about 60 days after the loan is disbursed. Also unlike federal student loans, PLUS Loans require an application fee.

Private loans

Both students and parents can take out private loans to cover funding gaps. Terms are basically the same for these loans, although students may be able to have their repayment deferred until after graduation. Another consideration is that students may wish to take out small loans to begin to establish a credit history. You may need to cosign for private student loans.

Other options

Parents do have some additional options for college funding, such as home equity loans. These often have rates as good as private loans.

So which type of loan should I get?

This really comes down to a personal decision. Ask yourself these questions as you are trying to decide:

-What level of debt do you feel is manageable for your child to graduate with?
-How important is it to you that your child takes responsibility for paying student loans?
-Will you and your child work out a repayment plan to repay PLUS Loans and other parent loans?

Student loan Tips

Private Student Loans - dispelling the myths

2008-03-06T02:24:00.000-08:00

At least 20% of college students need some type of loan to help pay for their college education. Such a statistic can lead to students graduating with an unmanageable debt load. An alternative is for parents to help out by taking out loans themselves. But which is the better option - student loans or parent loans? Each has distinct advantages and uses.

Federal student loans

Federal student loans have the lowest interest rates and best repayment options. If you need to take out loans and you qualify for federal loans, this is your best choice. Just be sure to accept only the funds you need, even if you are offered much more. Parents can always help their children pay off these loans once repayment begins after graduation.

Federal parent loans

PLUS Loans ( Parent Loan for Undergraduate Students) are another loan option that comes with low interest rates. If you are a parent with dependent students attending college at least part-time and you have a good credit history, you are eligible to receive a PLUS Loan. These loans are not needs-based. You can borrow up to the total cost of undergraduate education expenses, minus other financial aid already received. Unlike federal student loans, payment is not deferred until after graduation; instead, your first loan payment will be due about 60 days after the loan is disbursed. Also unlike federal student loans, PLUS Loans require an application fee.

Private loans

Both students and parents can take out private loans to cover funding gaps. Terms are basically the same for these loans, although students may be able to have their repayment deferred until after graduation. Another consideration is that students may wish to take out small loans to begin to establish a credit history. You may need to cosign for private student loans.

Other options

Parents do have some additional options for college funding, such as home equity loans. These often have rates as good as private loans.

So which type of loan should I get?

This really comes down to a personal decision. Ask yourself these questions as you are trying to decide:

-What level of debt do you feel is manageable for your child to graduate with?
-How important is it to you that your child takes responsibility for paying student loans?
-Will you and your child work out a repayment plan to repay PLUS Loans and other parent loans?

Student loan Tips

Consolidating Federal Student Loans Keeps Graduates on Course

2008-03-06T02:10:00.000-08:00

Although many people have achieved the dream of completing their college education, many of them face an unfortunate downside following graduation: paying back the inevitable student loan.

Too often it is not just one loan looming over students, many of whom have yet to settle into the sometimes overwhelming realities of the workforce and daily life.

NextStudent, one of the nation's premier education funding companies, can be the proverbial light at the end of the tunnel by helping students consolidate their multiple federal loans. From Stafford Loans and Perkins Loans to PLUS Loans and HPSL Loans, NextStudent's Federal Student Loan Consolidation Program equals convenience.

"Although the 2.77 percent interest rate on federal loans was at an all-time low between July 1, 2004 and July 1, 2005, the lowest the rates ever had hit in history, now is still a good time to consolidate," said Andrew Ernstrom, education finance adviser at Phoenix-based NextStudent.

Currently the interest rate is in the 5 percent range and is expected to again increase in July 2006. The cap on the program is 8.25 percent, but projections for the next increase are between one or two points.
"Everyone knew the rates were going up about 2 percent this past July 1," Ernstrom said. "So there was a mad dash nationwide to get everyone's loans consolidated," which allowed borrowers to take their variable rate loans and then lock them into a fixed rate.

Historically during the past 40 years interest rates averaged closer to 7 percent.

An important aspect of consolidation includes the six-month grace period. "Make sure to consolidate while you're in the six-month grace period because you get a cheaper interest rate," he said. The rate increases .6 percent when the grace period ends.

Students have been gung-ho about federal loan consolidation. "The only reason people wouldn't consolidate is because they don't think the rates will go up, but all the trends out there say they will, so it makes sense to do it now," Ernstrom said. The interest rates for student loans are set up off of the 91-day Treasury bill. Since May 30 when the rate was reset, the rate increased about .92 percent. "If the rates were reset today, everyone's rates would be .92 percent higher. And by next July who knows how high it could go," he said.

NextStudent's Federal Student Loan Consolidation Program extends loan payments up to 30 years, depending on a borrower's balance. As many people originally take out loans on a 10-year repayment plan, consolidation offers the same interest rate on the same amount of money but at a longer term, making the payment much more affordable. There are no prepayment penalties for the program, so borrowers can pay off loans at their own pace and have the benefit of a longer term if needed. Consolidation can decrease some payments up to 60 percent.

Even if students already have consolidated, NextStudent can help further lower their interest rate with reconsolidation, which allows borrowers to reset their forbearance and deferment rights, take advantage of new industry discounts and also can lower their payment.

"In the past students who had consolidated did not have the opportunity to consolidate again unless they took out new student loans," said Katie Carpenter, education finance manager at NextStudent. "In the past few months the Department of Education has allowed all previously consolidated loans to be reconsolidated," she added.

In turn, consolidation is the answer not only for students paying back their loans but for lenders. According to the Oct. 23, 2005 article titled "College loan plan raises questions" at NCTimes.com (North County Times) by J. Stryker Meyer, "A General Accounting Office report noted that people who consolidate their loans are three times less likely to default on their student loans."

NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding as easy as possible. Learn more about Student Loan Consolidation at http://www.NextStudent.com.

Student loan Tips

Student Loan Consolidation Rates

2008-03-03T12:54:00.000-08:00

Credit Check Before You Get Student Loan Consolidation Rates And Payment Plans

The most obvious way to get the best student loan consolidation rates and payments, is by having great credit. It’s easy to get great student loan consolidation plans with a credit score, also known as FICO, over 660. But, there are several ways to get the best student loan consolidation rates and payment plans.

You can do a simple online search on FICO and credit scores to find the information you need to check out your credit score. Knowing your credit information should be your first step to getting the best student loan consolidation rates. With knowledge, you will get the best student loan consolidation rates for your financial and credit situation.

Student loan consolidation rates and plans can vary from person to person. The loan rates offered will be based on your financial situation and credit. With a FICO credit score under 600, it can be a challenge to get a good student loan consolidation rate and plan in most cases.

7 Aspects To Consider With Student Loan Consolidation Plans

1. Lower Monthly Payments. Depending on your student loan situation and the type of lender you choose, you may be able to lower your monthly payments by up to 50%

2. Having Simple Loan Payments. By consolidating your student loans, you only have one loan payment per month and one check to write. This is very beneficial if you are writing several checks every month to multiple lenders.

3. Having Fixed Interest Rates. With some federal consolidation loans you can have a fixed rate for the life of your student loan. It’s best to do research to see what the best interest rates and term you are eligible for. You can check online to calculate the interest rate on a new student consolidation loan based on the rates of your current student loans. You can then round up to the nearest 1/8th of a percent of the weighted average of the interest rates on your eligible student loans.

4. Extending Your Payment Period. You may have a lot of student loan debt. With federal consolidation loans you may be able to extend the payment term up to 30 years. It’s a good idea to realize you will end up paying more interest over the life of your student loan consolidation. The idea is to get some leverage until your career takes off. You can focus on making money instead of several monthly loan payments.

5. In School Consolidation Programs. While still in school, eligible students can lock in a low rate. This would put you into repayment status, but since you are still in school, you are automatically put into deferment. The drawback of consolidating your loans while in school, is that you lose your 6 month grace period. The solution to this would be to request forbearance for up to 1 year on your student loan consolidation. Here again you can do some research and get more information online.

6. Lower Interest Rate. Student loan consolidation can save you thousands of dollars. You may be using credit cards with 10% to 28% interest trying to keep up with your bills. This can cost you thousands of dollars when you pay the minimum monthly payments on high interest credit card debt. Having a student loan consolidation may be your best option if you can get lower interest rates when consolidating your student loans.

7. New Interest Rates. With a new student loan consolidation, you may be able to get a much better interest rate. Interest rates are now at an all time low. You may have been paying on debt you built up from several years ago, at high interest rates. Things change over time in the financial industry.

Student Loan Consolidation Tips

Student Loan Consolidation

2008-03-03T12:49:00.000-08:00

How To Get The Best Rates And Plans?

Student loan consolidation can have many benefits for the career minded student. With the prices of things going through the roof, going to college can be very costly. Many students don’t have thousands of dollars to pay their way through college.

This is why many college students use student loans to get themselves through college. When it comes time to pay back their student loans, it can be a real burden and a distraction from their career.

Before you sign up on the dotted line, you should know how to get the best student loan consolidation rate and plan for your financial needs. If you are tired of too many bills and monthly due dates, it just might be time to find the best student loan consolidation rate and plan that you can qualify for.

What Is The Idea Behind Student Loan Consolidation?

When a student first applied for several student loans from several different agencies and student loan providers, they each gave a different interest rate and term for paying back the loans. The idea of student loan consolidation, is to take all the different student loans and put them into one easy convenient loan.

You then only have to make one monthly loan payment every month, instead of several loan payments every month over time. This saves the student both time and money. Having a lower interest rate and less checks to write every month are a couple of advantages of doing a student loan consolidation.

Student Loan Consolidation Tips
By Dean Shainin

Student Loan Consolidation

2008-03-03T12:38:00.000-08:00

After graduation, many students do not realize the total amount of student loan payments they will be responsible for every month. Several smaller loan payments can add up to a substantial amount of money each month. While the interest rates for student loans are great, and the education received as a result of the loans is worth the inconvenience of loan payments, many students will still need to research ways to make their student loan payments more manageable.

Fortunately, there are several worthwhile options for borrowers who find that they need some help in adjusting their student loan payments to fit their income. One such option is student loan consolidation, which is simply combining all of your student loans into one lender, and therefore making one monthly payment.

Should You Consolidate?

If you find that you are having trouble meeting all of your payment obligations every month, you may want to consider consolidating all of your student loans into one monthly payment. The payment is usually smaller under consolidation, which is beneficial if you want to reduce the percentage of your income that is used to pay your student loans.

Another reason to consolidate, especially if you have an adjustable interest rate loan, is that you can often lock in an interest rate under consolidation. You will want to be very careful, however, not to mix private and federal student loans together when you decide to consolidate; because when you do so, you will lose all of the tax benefits available to you with your federal loans (such as the tax deduction for interest paid).

Another factor to consider with student loan consolidation is that by reducing your payments and lengthening the term of your loan repayment, you will be adding to the total amount of money you will be repaying; so be sure to pay any extra amount on your payment that you can, if possible.

Beginning the Consolidation Process

Once you have decided to begin the consolidation process, the most logical option is to contact one of your current lenders.

Most of the lenders for federal student loans will be happy to buy out the loans from your other lenders and consolidate them for you. Be sure that you ask about the difference between private and federal student loans; because many lenders treat them very differently during consolidation.

You may also need to specify that you are interested in locking in the lowest interest rate possible for the life of the loan. If you are a married borrower and your spouse also has student loans, the lender may suggest that the two of you consolidate all of your loans together, for one lower monthly payment.

Be extremely wary of this option: by combining all of your loans into one, you are taking joint responsibility for the debt. This means if one of you dies, the other spouse continues to be responsible for the loan; it also means that, in cases of divorce, you must go through the process of attempting to divide the debt.

There are many companies that will help walk you through the process of student loan consolidation; however, make sure that you are well-informed of the actual process before you sign on with any one lender. Student loan debt does not have to severely affect your finances, and consolidation is a great method of managing this type of debt.

As long as you have researched all of the options of consolidation, and you have also well-researched your lender options, you can go through the process of student loan consolidation assured that you are making a very wise financial decision.

Student Loan Consolidation Tips

Home Equity Loan Holders

2008-03-01T05:20:00.000-08:00

Rude Awakening Awaits Home Equity Loan Holders

Countrywide and other financial institutions are notifying thousands of homeowners that their credit is shrinking as home prices sag. Some are revoking the entire line of credit, with little or no advance warning.

If you have an active line of credit, be forewarned. You may have the rug yanked out from under you, and be in for a tumble. Tens of thousands of homeowners with home equity lines of credit (HELOCs) are starting to feel the impact of the mortgage meltdown. Like a grouchy bear unexpectedly awakened during winter hibernation, this development has reared its ugly head within the ailing real estate market.

Pulling the HELOC plug

Now, lenders are sending notices to scores of customers, informing them that they need to stop borrowing money against their HELOCs. Home prices have dipped so far down, the collateral that houses represent to lenders no longer exists. As a result, lines of credit have evaporated into thin air. But Americans have recently gotten into the habit of relying on their real estate as a cushion against any financial setback. As the economy has slowed, withdrawals against home equity have quickened.

Home equity not a personal ATM

Many economists and business journalists have been referring to houses as ATM machines; but now, the ATMs are getting unplugged. For many homeowners, the tightening of credit could not have come at a more challenging time. Tens of thousands are fighting off delinquency and foreclosure, thanks to vital cash flow from home equity loans and lines of credit. Their experience now is like getting stranded in a foreign country on a vacation with a cancelled credit card, and no cash to tide them over until they return.

In this case, the vacation started when real estate inflation creating an overabundance of overnight wealth-at least on paper. But now that the bubble has burst and the subprime mortgage sector has gone down in flames, paper millionaires have morphed into real life paupers. Just as unrealized gains in the stock market can be erased by a single day's drop, real estate wealth based on appraised market value can also get wiped out as a bubble bursts. Homeowners are left out in the cold with their credit frozen by overcautious lenders trying to rein in the imaginary riches.

Countrywide Financial sent about 120,000 letters to customers in January, letting them know that they can no longer borrow against their HELOCs. Similar actions have been taken by other lenders, including Texas-based USAA Federal Savings Bank. The cutbacks affect a variety of home equity loans or second mortgages, and also mean that some institutions may curtail or even suspend issuance of new lines of credit. Chase Home Lending, a subsidiary of gigantic JP Morgan Chase & Co., for instance, will soon impose new restrictions regarding which customers qualify for a line of credit. In some of its jurisdictions, Chase has already dropped the loan to value limits on equity loans by 5 percent from previous levels.

Home Equity Loan tips

Home Equity Loans

2008-03-01T05:13:00.000-08:00

Understanding Bridge Loans

You've found the perfect house for you and your family, but the house you're living in hasn't sold yet. Where are you going to get the money to make sure that the new house doesn't get away? A bridge loan, although risky, may get you through these troubled waters.

Remember when you were young and on your family vacation, and your parents would drive over a very high, narrow bridge? You were petrified and thrilled at the same time. Bridge loans, although having nothing to do with water, can elicit the same feelings. These instruments give people the opportunity to buy the house of their dreams before they've sold their old one-but the risks can be dizzying.

Building the bridge

There are two types of bridge loans. The first pays off the mortgage on your current home and makes a down payment on the new one. This means that you pay the mortgage only on the new property, agreeing to repay the bridge loan when the old home sells.

The second type of bridge loan is more risky, allowing you to borrow against the equity of the current home to use for your down payment. The scary part is that while you're paying off a bridge loan, you're still responsible for the mortgage payments on both homes.

Short Term Benefits

The bridge loan can provide that short-term influx of cash that you need to secure your new home. Although the loan typically requires interest-only payments, the rates and fees may be higher and carry significant pre-payment penalties. Before going down this path, talk to a real estate agent to find out how long houses such as yours are taking to sell. If the market is really slow, determine if you have the finances to pay two mortgages for that length of time. The risk-and it's substantial, especially in this buyer's market-is that your current home will be slow to sell, leaving you with essentially two mortgage payments for some time, straining even the best breadwinners.

The alternative: A HELOC

A home equity line of credit (HELOC) would give you enough money for the down payment on the new house and you're your closing costs, but is much less risky than the bridge loan. In order for this to work, you must apply for the HELOC before you put your house on the market. Many lenders won't let you borrow against the equity in your current home if it's for sale.

Going over a bridge is always breathtaking. It's the same with a bridge loan. It could be the very thing you need to secure the house of your dreams, but weigh the risks carefully. Other alternatives, like dipping into your home equity, may save you many frightening moments while getting you to your destination safely and happily.

Home Equity Loan tips

Home Equity for Financial

2008-03-01T05:09:00.000-08:00

Retirees: Tap Home Equity for Financial Security

Many retirees fret about financial security, but those with accumulated equity can find peace of mind by tapping into it in one of two ways. Reverse mortgages and home equity loans both work well to provide retirement income.

As the baby boomer generation hits retirement age, many 60-something homeowners worry about how to provide a reliable and constant source of income for themselves. While most feel secure about their housing situation, and many have paid off their mortgages in full, they're less confident about where they'll get funds to cover day-to-day budgets or major expenses, like medical care.

Nearly two thirds of all retirement age Americans believe that they'll remain in their present home, rather than moving and selling. What homeowners nearing their sunset years may not understand, however, is how to leverage the asset of their primary residence into a source of steady fixed income. Noted personal finance experts recommend that they explore the possibility of turning their homes into cash cows by using either a home equity loan, or a reverse mortgage.

Leveraging with a home equity loan

A home equity loan works like other consumer loans, except that the collateral that secures it is your property. That bodes well for older Americans who don't owe any money on their homes, because even modest and average single-family homes are generally worth a quarter of a million dollars or more.

Average homes in more popular, high demand regions of the country-like California, for example-can be worth many times that much, as can homes that owners have improved over the years through add-ons and upgrades. A retiree can go to a bank or mortgage company and apply for a loan based on the current market value of his property.

At closing they'll walk away with a significant amount of cash. It's even possible to roll the closing costs into the principal of the loan to pay it back gradually over time. While home equity loans need to be repaid, a homeowner can use a portion of the loan to make those payments. If the equity is reinvested in stocks or bonds that offer a healthy yield, that extra income can help defray the cost of servicing the payback.

Benefits of a reverse mortgage

The other option may be even more attractive and cost effective. The reverse mortgage is, in essence, a cash advance based on the value of the home. By taking out a reverse mortgage, a homeowner receives monthly payments from the mortgage company, without having to pay the lender a penny.

Funds can be taken in a lump sum, through regular monthly payments, as a line of credit, or through a combination of these options. Best of all, the homeowner can't be forced to sell his home or move. Even if the home loses market value, the retiree is safe, because the mortgage lender has to suffer the loss and continue to make payments.

Home Equity Loan tips

Home Equity Loans

2008-03-01T05:01:00.000-08:00

Home Equity Loans

A home equity loan allows you as a homeowner to get a loan by using the equity in your home as collateral. The equity consists of whatever funds you have invested in your property in order to own it or improve it.

Since it is a debt against your own property, which you are in actual possession of, a home equity loan is a secured debt. The property can be required to be sold if the creditor wants the money back that you have borrowed.

Home equity loan vs. Home equity line of credit
A home equity loan can be obtained in a lump sum or used as a revolving home equity line of credit.

home equity loan can be either of the following:
-A fixed rate mortgage
-An adjustable rate mortgage

A homeowner who requires more money in large amounts usually applies for a home equity loan. Some expenses that make a home equity loan useful are:

-Debt consolidation
-Home repairs
-Medical bills
-College tuition for family members

Tax benefits of home equity loans
A home equity loan is also beneficial because the home equity loan rate charged is usually tax deductible, as the loan is used for its primary functions. You can use our home equity loan calculator to check what various home equity loan rates will mean for your monthly payments. Always compare offers from several lenders and brokers to obtain the lowest home equity rate possible.

More information on home equity loans and rates

If you would like more information on home equity loan rates, and how to find the best home equity loan, please fill out the form above! Home equity loan specialists will get in touch with you to consider your options and see how a home equity loan can help you make the most of what you have.

There are several choices available for homeowners to free up the equity they possess in their homes.

Home Equity Loan tips

Commercial Mortgages

2008-03-01T04:53:00.000-08:00

Commercial Mortgages

Commercial mortgage loans differ from residential mortgages primarily because they're used to finance commercial property. The property may technically be a residence, but if it's used as a commercial venture-for example, a large apartment building rented out for its income potential-a commercial real estate loan is generally required. The volume of commercial loans grew 16 percent in 2005 to $1.3 trillion, as lenders provided business loans for various ventures, developments, investments, and construction projects.

Tips for successful business loans

When lenders qualify customers for a commercial mortgage, the credit history of the business and its directors is taken into consideration, and the risk of the commercial venture itself is carefully evaluated. The better you can present a successful business plan, the more likely you will be convincing lenders to approve your loan on favorable terms. For instance, if an office building has good tenants and a positive, profitable track record, lenders will be more inclined to lend money to help an investor buy it than they would for a building with vacancies or negative cash flow.

Commercial loans carry either fixed or adjustable interest rates, and many charge penalties for prepayment. Most commercial loans are structured with a balloon payment that comes due after five, 10, or 15 years, although some have fixed 30-year schedules. And commercial real estate loans are sometimes created as bridge loans, to help borrowers finance projects until they get off the ground. For instance, a developer might use a two- or three- year bridge loan to borrow money to build a shopping center, and then refinance to a longer loan once the shops are occupied and tenants are providing a steady cash flow of rents to the developer.

Commercial second mortgages

Just as homeowners often use a home equity loan to raise cash for household purchases, improvements, or expenses, commercial borrowers also use second mortgages, equity loans, or refinancing strategies to raise capital for such things as equipment, inventory, or business expansion.

Because commercial mortgages are tailored to meet the needs of the business community, they're the best option for those who need financing for commercial real estate ventures.

Commercial Loan tips

Personal Loan Tips

2008-03-01T04:49:00.000-08:00

How to Spend Your Christmas Bonus

If you're fortunate enough to receive a hefty Christmas bonus, here are some tips on spending it that embraces the true holiday spirit.

Did your employer reward you for another year of hard work with a generous holiday bonus? Way to go! Extra money in your pocket never hurts. Where should you spend it to bring some joy to your financial life?

Go ahead and treat yourself to something nice that you couldn't afford without this extra cash infusion. But use a modicum of control, and don't spend it all in one place. Set aside a predetermined portion of the bonus for your personal indulgences. Then, stick to that plan through rain, sleet, or driving snow.

The remainder of the bonus-which is hopefully the majority of it-should be spent on something responsible. Here are a few ideas for your windfall.

Pay off debt

Almost everyone has some debt hidden away, somewhere. Start with high-interest credit card balances, then look at your student loans, extra car payments, or putting more equity into your home. Begin with the highest interest rates, and work your way down the list. You'll thank yourself for many holidays to come.

Make some investments

For the gift that keeps on giving and giving and giving again, put some extra cash into your retirement accounts or the kids' college savings plans. If you're not taking full advantage of an employer-matched 401(k), investing here is a wise way to "increase" that bonus. IRA plans or Coverdells are good, too. It's like giving your bonus check a raise, and then sending it to your future self, who needs it the most.

Build your emergency fund

For some more immediate satisfaction, set aside some of the stash in a high-interest savings or money market account, where you should be keeping three-to-six months worth of emergency cash. If something unexpected and expensive were to happen, that's the cushion that'll soften your blow. It's not good enough to stuff dollar bills in a mattress-you should at least try to stay ahead of inflation.

Give to charity

If you're already debt-free, have fully funded your investment accounts, and have your emergency funds in order, you've got it made. There are plenty of deserving, but under-funded, charitable causes that could use some support. In fact, think about handing some cheer over to the needy, even if you aren't completely unburdened yet. You're making the world a better place, one dollar at a time. Meanwhile, the contributions are usually tax-deductible, and it may do wonders to balance your karma.

Go ahead and enjoy that bonus. Have a nice dinner and get the Christmas shopping done early (and without credit cards). Then, feel great about making your hard-earned bonus work for the greater good. It's beginning to look a lot like Christmas.

Personal Loan Tips

How to Finance Plastic Surgery

2008-03-01T04:45:00.000-08:00

Need a Lift? How to Finance Plastic Surgery

Plastic surgery can do more than just alter your appearance-it changes your bank account, too. That's because this type of surgery is expensive, and is seldom covered by insurance. Before you proceed, carefully analyze your financing options-including a home equity loan.

The Billy Joel tune, "Just the Way You Are," has few fans among the ranks of plastic surgeons. They'd rather have people change the way they look, and spend quite a big chunk of change in the process.

Facing the financial facts

Many people opt for plastic surgery as a means not only to improve their appearance, but also their state of mind. The concept is that if you look better on the outside, you'll feel better on the inside.

Unfortunately, it's very pricey, and many people need some sort of financing to afford it. One option worthy of consideration is a second mortgage, because the rates are likely to be lower than with other types of loans. There are two types of second mortgages-the home equity loan and the home equity line of credit (HELOC). Both use your home as collateral for the loan and, on both, the interest is tax-deductible. But if you prefer a fixed rate and a fixed payment, the home equity loan warrants extra consideration

Picking the right financing option also influences your state-of-mind. If the idea of interest rates rising makes you uneasy, for example, you'll probably want to choose a fixed-rate home equity loan. Once you close on one, the payment and the rate can't change. With a HELOC, your loan has a variable rate. If rates spike, you'll be faced with the unsettling task of paying more for interest charges.

Other options may not cut it

Even though home equity loans are generally the most cost-effective way to finance plastic surgery, consider all your options. Many doctors offer financing packages. Take a careful look at each offer, and compare the rates and fees with other loan packages. Also, review your employment insurance policy and any additional supplemental insurance you may carry. Some forms of supplemental insurance do cover plastic surgery.

One option you should avoid is paying for the surgery with a credit card. Most of them have double-digit interest rates, which will cost you dearly over the long run. You could consider paying with a credit card, and then transferring the balance to another with a 0 percent balance transfer interest rate. If you make that choice, be prepared to pay down the loan after the 0 percent period is over.

Ironically, most people who choose a form of financing, like a credit card or a consumer loan eventually consolidate the debt into a home equity loan to save money. Don't waste time or money-consider paying for your plastic surgery with a home equity loan right out of the gates. In the end, both you and your finances will look good for years to come.

Personal Loan tips

Personal Finance

2008-03-01T04:40:00.000-08:00

Four Personal Finance Resolutions for the New Year

Make some personal finance promises that you can actually keep in the New Year.

Lose weight. Stop smoking. Learn Jiu-Jitsu. Making a pie-in-the-sky New Year's resolution feels great for about 10 minutes. Then you figure out that these goals were a stretch too far, and you settle down on the couch with a pint of Cherry Garcia and your old friend, Joe Camel. See ya next year, Sensei!It doesn't have to be that way. Some promises can put more money in your pocket every day, and who wouldn't feel motivated by cold, hard cash incentives like that? Here are a selection of resolutions that can put more money in your pocket.

1. Commit to a realistic budget
Sit down with your family and figure out where your money is going every month. Add up the non-negotiable bills, like car payments, mortgage payments, the kids' college or kindergarten tuition, or the electric bill. Then, for the next 30 days, calculate the variable costs, like food and clothing, gasoline, video rentals, and orange mocha frappuccinos. (You get the idea.)

The grand total absolutely, positively cannot exceed the family's combined paychecks. If it does, make cuts in your variable costs, or plan to increase your income. Replace the latte with home-brewed coffee. Turn the light off when you leave the room. Wash the neighbor's car for extra cash.

Write the whole budget down, item-by-item-and stick to it. You can have fun discovering where your cash ends up, but it's no fun getting caught under an ever-heavier debt load.

2. Hide your credit cards
Do you use plastic responsibly? If you're paying off your entire credit card balance every month and taking advantage of cash-back or reward points offers, you're good. If not, you're better off paying cash, or using a debt card, whenever possible. Those finance charges add up very quickly, not to mention late fees.

3. Save and invest
This resolution puts today's money in your pocket tomorrow-with compounded interest. Set aside three to six months' worth of living expenses in a high-interest savings account or short-term CD-you just never know when that rainy day comes around. Max out your 401(k) or IRA contributions, and earn tax-free interest until the day you retire. Invest in the stock market, or buy some gold. You won't miss that money today, knowing that it's hard at work growing for tomorrow.

4. Live it up
Okay, this is not a financial commitment, at all. But you deserve to enjoy life. The best finances in the world can't make you happy unless you take some time for yourself once in a while. Think about last year and the purchases that made you unhappy-then resolve not to repeat the same mistakes. Find the highlights of last year, and make more of them in the next.

Personal Loan tips

Personal Loans

2008-03-01T04:37:00.000-08:00

Personal Loans

When you mention the word "loan," most people think of a home mortgage. They are, without a doubt, the loan of choice for most Americans, thanks to their tax advantages and relatively low rates.

However, if you need quick access to cash and aren't a homeowner, or don't want to touch the equity in your home, an unsecured, or personal, loan is a viable option. If you have good credit and need a moderate amount of money, a personal loan can be a very attractive alternative to a credit card or asking friends or family to help you out.

Good Credit, Better Personal Loan Rates
The financial world tends to smile upon people who have good credit. Unsecured loans are no different. Because a lending institution doesn't have the luxury of using your property as collateral for an unsecured loan, they must use your credit score as the criteria for their lending decisions. Thus, the better your credit, the better your interest rate and monthly payment will be. They'll also look at your income and debt, to make sure you aren't overextending yourself.

Smaller Personal Loans are Better
If you need to borrow a small amount of money, a personal loan may be a better choice than a credit card. If your credit is in good shape, you may be able to get a personal loan that beats the high rates charged by credit card companies. You may also find that borrowing from a bank or credit union can be less stressful than asking friends or relatives.

If you're shopping for a personal loan, look around for the best interest rates. Obtain a copy of your credit report and review it for accuracy. If there are any errors, immediately begin the process of correcting them.

An unsecured loan might not have all the tax benefits of a mortgage, but it could be the answer to your financial woes at a rate and repayment schedule that fits comfortably into your financial picture.

Personal Loan tips

Saving Students from Debt

2008-03-01T04:26:00.000-08:00

Saving Students from Debt

Recent developments at America's top colleges and universities indicate that there's a new school of thought when it comes to helping students pay for higher education. Today, funds are being rewarded less on academic merit and more on financial need.

High school students (and their parents) have always dreamed of getting a merit-based scholarship to finance a college education. The alternative was to either scrape together enough money to pay for college, or get need-based financial aid and student loans. The end result was usually extensive debt on graduation day. The textbooks on this traditional system are being rewritten, however, much to the delight of lower-income students.

Grants and work-study over loans
One bold initiative has been taken by Davidson University, an independent college near Charlotte, North Carolina. To prevent students from graduating college saddled with debt, the school has announced that it will be offering grants and work-study dollars instead of need-based loans. The move is designed to allow students to pursue post-college opportunities without having to make decisions based on debt.

Merit-based scholarships losing favor
Another trend underway is the elimination of merit-based scholarships. George Washington University (Washington, D.C.) and Hamilton College (Clinton, NY), both mindful of the growing number of lower-income college bound students, are working to limit or eliminate the grants given to students already capable of affording the tuition. The schools want to retain a reward system for outstanding academic achievement, however, and will most likely retain some merit-based rewards.

No contribution required
Joining the bandwagon are some of the nation's most prestigious-and costly-schools, such as Harvard and Yale. They have simply stopped requiring lower-income families to contribute to the cost of attending. The University of North Carolina at Chapel Hill has taken similar actions, despite the fact that it's a state institution.

The actions of the top learning institutions indicate the recognition of the changing demographic of America. With growing numbers of lower-income students and ever-increasing tuition costs, the need to make higher education affordable has never been so critical. These bold new approaches by universities and colleges are terrific developments for college students. It could foster a whole new generation of graduates who are ready to focus their energies on improving the world instead of paying off their student loans.

Student loan tips

Student Loan Consolidation

2008-03-01T04:18:00.000-08:00

Student Loan Consolidation: Take The Pressure Off

Finding money for college can be as challenging as pursuing a degree. Student loans can provide the needed cash; but once students graduate, they have amassed a huge debt. Thanks to the student loan consolidation program, though, graduates can remove the pressure.

By consolidating student loans, you can merge all outstanding loans into a single indebtedness with one lender and one repayment plan. The individual loans are paid off in full, and the total amount is rolled over into the new loan. Student loan consolidation is available to either students or their parents.

Combining loans lets you lock in a fixed interest rate that's typically lower than the original loan rates. You also lower your monthly payment. These loans have flexible repayment options and no fees, charges, or prepayment penalties. What's more, there are no required credit checks or co-signers.

Eligibility requirements
To be eligible, you must either be in the post-graduation six-month grace period, or have started to repay your loans. The total amount of your indebtedness must be a minimum of $7,500, with more than one lender, and you should not have already consolidated. However, if you've returned to school and have additional loans, consolidation is an option once again.

The following types of loans can be merged:

-Direct Subsidized and Unsubsidized Loans
-Subsidized and Unsubsidized Federal Stafford Loans
-Direct and Federal PLUS Loans
-Direct and Federal Consolidation Loans
-Guaranteed Student Loans
-Federal Insured Student Loans
-Federal Supplemental Loans for Students
-Auxiliary Loans to Assist Students
-Federal Perkins Loans
-National Direct Student Loans
-National Defense Student Loans
-Health Education Assistance Loans
-Health Professions Student Loans
-Loans for Disadvantaged Students
-Nursing Student Loans

Finding a lender
To apply for a debt consolidation loan, visit any bank or credit union that participates in the Federal Family Education Loan Program, or apply to the U.S. Department of Education. If all your loans are with one lender, you must consolidate with that lender. The loan terms and conditions are generally the same, no matter where you do business.

The time immediately following college is a fresh start in life; don't be burdened by the debt of the past. Get your college finances under control with a student loan consolidation, and take the pressure off.

Student loan tips

Get a Scholarship

2008-03-01T04:12:00.000-08:00

Reap Some Rewards: Get a Scholarship

Most high school graduates think that scholarships are reserved for superstar football quarterbacks or academic wunderkinds. Fortunately, for the 99.9 percent of high school graduates who don't fall into those two categories, there are hundreds of different scholarships available. Even if you don't finish first in the race for grants, there are student loan options that can help overcome tuition hurdles.

More scholarships than you can shake a syllabus at
The volume of scholarship opportunities has boomed in recent years. There are new scholarships based on a variety of categories, including:

-Academics. (Generally given to students with high Grade Point Averages and excellent standardized test scores.)

-Athletics. (Not only traditional sports like football and basketball, but less popular endeavors like golf, crew, and track can score you some aid.)

-Financial need. (Based on a student's finances. Can help low-income grads to attend prestigious universities.)

-Demographics. (Local organizations award hometown heroes grants on a yearly basis.)

Other options include scholarships based on military service, the arts, and various occupations. Do some surfing on the Internet. You'll be surprised at how many different types are available, including scholarships for left-handed students and the Klingon Language Institute scholarships. Don't be afraid to boldly research where no man (or woman) has gone before.

Create a fallback plan
If none of these scholarship programs work out, there are plenty of student loan packages available to you. A student can choose government programs, such as the Stafford Loans (given to students) and the PLUS Loans (for parents). There are also private student loans, which compete with government loans in terms of rate, but generally involve less paper work.

The early bird catches the worm when it comes to scholarships; so if college looms, it's best for a student to start a scholarship search early. Check with local lenders regarding the best time to apply for a student loan. Consider both options, and you'll have passed this crash course in financing a college education. Besides, it never hurts to have a bird's eye view of your financial options.

Student loan tips

Saving for College

2008-03-01T03:57:00.000-08:00

Saving for College

Even at today's tuition rates, saving for a child's education may seem like an impossible mountain to climb. For the sake of your child's future, though, now is the time to strap on those boots and grab that ice axe.

When saving money, time and discipline are your most powerful tools. If you set aside a little each week when your little one is young, you can build a substantial sum by the time junior becomes a college freshman. In reality, many parents aren't able to save consistently until their children are older. For these moms and dads, the availability of specialized college savings programs helps maximize savings quickly.

College Savings Plans: The Options
The following programs offer advantages over traditional savings accounts.

-Section 529 Plans. There are two types of Section 529 Plans: the college savings plan and the prepaid tuition plan. The first is a tax-advantaged investment account. The latter allows for purchasing tuition credits that essentially lock-in current tuition rates.

-Coverdell ESA. The Coverdell ESA, also known as the educational IRA, offers advantages including tax-free earnings and certain qualified tax-free distributions.

-Rebate Programs. Some institutions offer loyalty rebates that help maximize your college savings over time. Two examples are BabyMint and Fidelity Investments' 529 Plan credit card. Both allow you to earn rebates through purchases of everyday products and services; these rebates are automatically transferred into your designated college savings account.

College student loans
There will be times when saving enough in the time available isn't realistic. Don't panic-you have contingency options. There are many college student loan programs available that can help fund that tuition shortfall. Talk to your child's counselor about federal student loans, and to your bank about private student loans and student loan refinancing. Depending on your situation, some government student loans may be almost automatic. Later, you can consolidate student loan debt as appropriate to your financial situation.

Now that you're in your boots, you're ready for the college-financing climb. It may be late in the season, but you won't regret starting up that mountain now.

Student loans tips

Student Debt Consolidation

2008-03-01T03:46:00.000-08:00

Student Debt Consolidation

You paid for college the way most people do-you borrowed. Back then, financial aid was a necessary investment in your future. But now that the future's here, those payments might be more of a burden than you had expected. If you have more than one college loan to repay, a student loan consolidation may make your life a lot easier.

The basics of student loan consolidation
Consolidating is similar to refinancing your mortgage: You obtain one large loan and pay off all of your smaller loans. Student debt consolidations are subject to federal regulations and can be done directly by the federal government or by any FFEL (Federal Family Education Loan) lender. Here are some key facts:

-Interest rates are calculated based on the rates of the loans that are being consolidated.

-Regulations outline the maximum interest rate a lender may charge. Since there's no stated minimum interest rate, shopping around with different lenders may turn up a slightly lower rate.

-The length of the repayment term, typically 10 to 30 years, is based on the amount of education-related debt outstanding.

-Student loans can't be consolidated until they're in repayment mode.

-There are no upfront fees for student loan consolidations.

-Only direct and FFEL student loans can be consolidated; private loans are left out of the deal.

Consolidation advantages
The consolidation will streamline your repayment by replacing several payments with one.
The new repayment period will normally be longer, which means lower monthly payments.

The disadvantages
-If the repayment period is longer than the original loan term, the amount of interest you pay over time will be higher.

-You may lose benefits or incentives offered by your current lender.

Student loan consolidations help maximize the investment you made in your education by providing more manageable repayment terms. Check with lenders to find out specifically how your loans can be streamlined. In college, you learned how to do homework; now go and do a different kind of homework and apply your education to the real world!

Student loan tips

Overview of Student Loans

2008-03-01T03:39:00.000-08:00

Overview of Student Loans

When you're trying to pay for college, it's nice to turn to a wealthy uncle for a little financial assistance. No one is happier to help you pay for your higher education than Uncle Sam and the federal government.

You can tell a lot about a society by how much it values education. With its vast network of public and private universities, America is a world-leader in education.

Our emphasis on higher learning could be attributed to the correlation between education and economic growth. If the U.S. is going to keep its economy running at full speed, it needs an intelligent workforce. Higher education doesn't come cheap, however, so the federal government has created a number of student loan programs.

Perkins loans

Available to undergraduate and graduate students alike, Perkins loans offer the lowest interest rate-currently fixed at 5 percent-and can take up to 10 years to repay. Your school acts as the lender, and the loans are given on a first-come, first-served basis.

It's a particularly attractive loan for people in the military, law enforcement, certain teaching positions, and non-profit jobs. If you pursue a career in these public service fields, the government may discharge your loan.

Stafford loans

Stafford Loans are provided to undergraduates and graduate students who are enrolled in school at least half-time. Unlike Perkins loans, the government will partially subsidize the money based on a student's level of financial need. Uncle Sam will pay the interest during school years, but the student must begin repaying the loan six months after graduation. In the unsubsidized loan, a student loses his six-month grace period.

Loans are made available directly from the government to colleges or financial institutions. Current rates for Stafford loans are capped at 6.8 percent. Terms of repayment range from 10 to 25 years on both the subsidized and unsubsidized loans.

PLUS loans

Like the Stafford Loans, PLUS loans are granted to undergraduates and graduates who are enrolled at least half-time. With PLUS Loans, the interest rates are variable, but they do have a cap. Loans distributed directly by the government are capped at 7.9 percent, and those distributed through a school or a lender are capped at 8.5 percent. There's also a fee associated with the PLUS loans. Repayment terms are 10 years, and you must begin within 60 days after the final loan is disbursed.

To obtain any of these loans, a student first needs to apply for the Free Application for Federal Student Aid, or FAFSA.

Even though the government values education, it can't give a free ride to everyone. The loan programs are based on a student's financial need, which may be the cause for the wide number of programs. If you're confused, consult with a financial aid counselor or a loan officer from a lending institution, and you'll find out where you fall in the student loan spectrum.

Student loan tips

Five Financial Aid Tips

2008-03-01T03:33:00.000-08:00

Five Financial Aid Tips For Student Loan

A rite of passage for any college student involves learning how to manage finances. Not only does this apply credit cards, but also to a huge source of concern: financial aid.

1. Consult your school's financial aid office for adviceThere's been no shortage of bad press for financial aid offices in the wake of recent scandals. The campuses of major educational institutions were receiving "gifts" from lenders, thereby tainting the objective advice that they were giving to students. Nevertheless, the bulk of the guidance handed down by a financial aid officer has merit. Always keep in mind, however, that a college is a business. Most of the advice it provides is designed to benefit the school in the long run. Always be sure to get a second opinion.

2. Look everywhere for adviceWhere should you go for a second opinion? The Internet is a vast resource of information, although you'll need to be sure that the information you're reading is accurate. You can also crosscheck data with friends and family, especially people who have received financial aid in the past.

3. Go public before you go privateBefore you take out a private loan, look to Uncle Sam and his repertoire of federally subsidized loans. This includes Stafford and Perkins loans, both of which have lower interest rates than private ones. Explore all your options.

4. Scholarships and state assistanceHave you checked out all the potential scholarship and grant funding options available? There are an amazing number of programs out there, many of which dole out money for some pretty obscure reasons. The time that you spend doing research could really pay off.

5. Track your paperwork and detailsMost of the loan documents that you sign are heavily regulated and won't include any sleight of hand. However, you need to know what you're signing. Be sure that you're not paying any fees that weren't discussed at the beginning of negotiations. Making yourself familiar with the specifics of the contract will help you immensely in the long run.

College is a great time to learn lessons beyond the textbook. Hopefully, you'll develop self-discipline, social skills, and a true sense of self. You should also develop your own resourcefulness, especially when it comes to financial aid. Get smart about how to save money, and you'll come out ahead when it comes to financial transactions down the road. Getting an "A" in finances in college can lead to rich rewards in your adult life.

Student loan tips

Student Loan Debt

2008-03-01T03:27:00.000-08:00

When Not to Consolidate Student Loan Debt

To a college graduate, the call to "consolidate" is almost as familiar as her school fighting song. But consolidating student loans might not be as warranted as it was in years past-especially in light of recent rate changes.

Most college students spend a great deal of time with advisors. They receive guidance on class work and their various areas of study. The smart student should also seek out guidance on financial matters- especially if she has student loans.

For the last several years, students have been told to consolidate their loans before a July 2007 rate hike took place. Now that the deadline has passed, many factors need to be considered before initiating a loan consolidation.

Rate matters

The first thing that you want to do is compare the rates of your current loan with today's market. When you consolidate your student loans, a weighted average of all the interest rates of the loans is taken and rounded up to the nearest 0.125 percent.

To find out what your new monthly payment would look like after consolidation, meet with a lending official and/or do it yourself with an online loan calculator. You may discover that the new rates don't justify a refinance. You'll also want to see if the rates on your current loans are fixed. If they are, it may not make sense to refinance everything just so that you have the convenience of one loan payment. If you're uncertain about the terms on your loan, review your portfolio with a lender. Many will be happy to help you, free of charge.

Act quickly for student debt consolidation

Consolidation works most effectively if the transaction occurs within six months of graduation. That stretch of time is considered a grace period for students-they receive a price break if they start repaying their loans during that time. When the grace period ends, the interest rate on the loan increases by nearly 1 percent. Unfortunately, if you choose the rate discount, you'll have to start repaying the student loans almost immediately after graduation. However, there are lenders willing to hold the package until the end of the grace period. Check with your bank to see if they have the same policy.

Long-term costs vs. consolidation

Ultimately, you'll need to determine your top priority. If you need low monthly payments on your loans, you may want to consider refinancing and stretching out your loan terms. However, if you'd like to be rid of a monumental debt as quickly as possible, you can opt to keep your loans at their current rate and pay down your principal.

As any academic advisor will tell a student, there are many variables to consider when making a decision. When it comes to student loans, take a good look at your current financial situation and consider your short-term job prospects. Don't jump at the easy money that a consolidation can bring. The best advice dictates that you understand all the factors at play before you make your consolidation decision.

Student loan tips

Student Loans

2008-03-01T03:23:00.000-08:00

It isn't always possible to finance a college education out-of-pocket or through scholarships. There are many student loan options beyond that, and a clear order of preference among them.

Federal Student Loans
Your first line of defense is the federal student loan program. A Perkins loan is hard to beat with its fixed 5 percent interest, no repayments until 9 months after graduation, and no extra fees. You need to qualify for this program through the Free Application for Federal Student Aid (FAFSA). Funds are limited, and generally go to students in serious need of low-cost financing.

The next step is the subsidized Stafford student loan. The interest rate is higher-6.8 percent-and the post-graduation grace period is only six months. You apply through the same FAFSA form, and can use both types of loan simultaneously. Another choice-the unsubsidized Stafford student loan-accumulates interest from the day of your first disbursement rather than from the end of the grace period. It's also easier to qualify for.

The last federal student loan is called PLUS. Under this program, no FAFSA form is necessary, and your parents can borrow as much as they need to finance your education. But the interest rate is higher-8.5 percent-and your parents will need to have a decent credit rating. Repayment terms are less generous, and 4 percent of the fees are deducted from every disbursement check. In other words, PLUS has a lot of minuses.

Other Student Loan Options
If you're going to any kind of medical school, there are special Health Professional Student Loans available with rates as low as 6.5 percent, a full year's grace period, and very long repayment periods. These studentt loans are quite affordable, but available only to future healthcare professionals.

Many banks and credit unions offer private education loans, though they are often expensive. Other students get their tuition money from home equity loans or HELOCs against their parents' homes. These can be preferable to PLUS for tax reasons, but are otherwise much the same thing.

Student loan Tips

Auto Incentives

2008-03-01T03:12:00.000-08:00

Making the Most of Auto Incentives

Incentives can appear in many forms. For a sports team, it's a shot at a gleaming trophy. For a 5-year old, it's a lick of a cherry lollipop. For the car buyer, incentives include price reductions and low interest rates, both of which can help you save big bucks on an auto purchase.

Chances are that you've seen a TV or newspaper ad offering "cash-back" or "zero percent financing" on the purchase of a new car. These are auto incentives, and they commonly take the form of low interest-rate financing and cash rebates. No matter when they occur or what form they take, the auto incentive can be a great bargain for people who are ready to buy. The key is finding the one that works best for you.

of incentives
Cash-back rebates can range from $500 to $2,000. The incentives vary widely by region, and tend to apply to higher-end luxury vehicles. Dealers or manufacturers usually offer these cash-back rebates when they have excess inventory.

A great rate on financing is another popular incentive, with rates dipping as low as 0 percent.

The obvious question: Should you choose the cash rebate or the low-rate financing? The answer depends on your financial situation-do you want long-term savings or lower monthly payments?

There are occasions when dealers will offer a combination of both the cash back and low-rate financing. Crunch the numbers to determine which one is the best choice for your personal situation.

Timing is the key
To make room for new models, dealers traditionally offer generous rebates in late summer or early fall. Now that new models are introduced at various times throughout the year, these traditional incentive times are no longer so traditional.

Today, you're better off researching a particular life cycle of a model. If it's been on the market for four to five years, expect a new model to replace it. Minor design revisions occur more frequently; but it's up to you to research the product to find out when these will occur. You can expect some sort of dealer rebates whenever new models hit the show room floor.

Another time to expect a rebate or low-rate financing offer is during a copycat phase. This occurs when a car manufacturer offers a significant rebate or discounted financing, and other automakers follow suit to stay competitive.

Incentives are a great way to save money on a new car. Do your research to find the kind of vehicle that you want to buy. Chances are good that there'll soon be either a cash rebate, or a low-rate financing offered in the next year. The lower price-tag should give you plenty of incentive to buy the car that you really want.

Car loan tip

Buying Your First Car

2008-03-01T03:02:00.000-08:00

Buying Your First Car - Tips for Teens

In the life of a teenager, there's nothing quite as sweet as getting a driver's license. But there's also nothing quite as sour as learning how difficult and costly buying a car can be.

You have to feel sympathy for teenagers. They simply can't wait to transition into the adult world. Perhaps if they knew about the costs and responsibilities that await them, they might choose to wait a little longer.

Teenagers looking to buy their first cars have plenty of adult-sized obstacles to overcome. Here's a rundown of what the average teen can expect when she tries to buy that first auto.

Sticker shock
After being inundated with car commercials since birth, most teenagers can't wait to slip behind the wheel of a shiny new car. But the average minor doesn't have the financial means to buy one, especially when the cost of insurance, gas, and a down payment are factored into the equation. If she wants to try, a good rule of thumb is to put at least 20 percent down on a car, and take a loan with a term no longer than 48 months. Push those limits any further, and a teen increases the potential for future hardships as an adult.

Buy used, buy wisely
If a new car is out of the picture, the logical choice for a teen is a pre-owned vehicle. Because a used automobile with mechanical problems could wind up costing as much as a brand new one, a teen should consider a model from an automaker with a good reputation for building sturdy cars. Several sites on the Internet let you see a car's history if you have the Vehicle Identification Number (VIN). It's also essential that you visit a trusted mechanic for a thorough inspection on the car. It's well worth the upfront cost.

Establish credit
There are few lenders willing to take a chance on a teenager who doesn't have a track record of paying bills on time. If a teen wants to get a car loan, she'll need to establish a credit history. She can do this by getting a simple video store card, or even a credit card with a low maximum limit. If either of these methods is used for six months and bills are paid on time, a favorable credit score will be created.

Another option for establishing credit is to have a parent co-sign a loan. The downside to this route, however, is that if the teen defaults on the payment, the car loan becomes a parent's responsibility. And if the parent fails to pay, both parties' credit histories will become as tarnished as the rust on some used car fenders.

Congratulations go out to every teenager who successfully passes her driver's license test. But celebrate more prudently than buying a car. Such a purchase shouldn't be impulsive because it includes plenty of adult-world obstacles. By following the tips above, you can steer clear of financial trouble.

Car loan tip

Four Tips for Car Loan Approval

2008-03-01T02:55:00.000-08:00

Bankruptcy Survivors: Four Tips for Car Loan Approval

Our consumer-based society is built on options. Unfortunately for people who have filed bankruptcy, the penalty for your financial misstep is a reduction in options. There's only one way to get back on your feet, and that's to prove to lenders that you're no longer a credit risk. One way to accomplish this very attainable feat is to get approved for a car loan.

1. Find out a lender's guidelines. Ask a potential lender what their guidelines are for approving loans for people in your situation. Don't try to hide the fact that you've had a bankruptcy. They'll find out soon enough. This little bit of market research upfront will save you quite a bit of time down the road.

2. Focus your search on three types of lenders. Consider using car manufacturers, banks, or credit unions. While the flexibility of automaker's finance units tends to vary (luxury car dealers don't often lend to bankruptcy survivors), many may be able to extend an offer if they're under pressure to boost their sales. Banks and credit unions are good bets-just be sure to pass on the subprime lenders. These financial companies generally will look to hit you with extremely high rates and/or fees.

3. Know your score. Before you set foot into a car dealership, thoroughly review your credit report. If there are erroneous late reports, you can get them removed and improve your score. You should also take the credit report with you when you visit the dealer. It sends a message that you're well informed and less susceptible to their negotiating tricks.

4. Be willing to lease or buy. Your top priority is to get approved for a loan. You're looking to rebuild your long-term credit worthiness, and the first step is to find someone willing to extend credit to you. If the lender will give you a loan if you lease the car, strongly consider it. It may not make the most financial sense for you in the short run, but it will have very positive long-term ramifications. If the lender leaves the decision up to you, choose the lowest payment you can find.

If you follow these steps, you can align yourself with a lender willing to give you a chance to rebuild your credit history. Overcoming a bankruptcy will be no easy task. But if you follow these steps and subsequently make those car payments on time, you'll find more choices and opportunities the next time you search for a car loan. You can be a survivor-you just need to know how to outwit, outplay, and outlast the credit industry.

Car Loan Tip

Used Cars Certification

2008-02-26T08:56:00.000-08:00

Used Cars Certification: Is it or Isn't It?

A used car certification is designed to give buyers some degree of confidence that they aren't purchasing a lemon. Lack of standardization among certification programs, however, opens the door for misunderstandings and buyer disappointment.

Consumers beware! Buying a "certified" used car may have its pitfalls. Tread lightly on this unstable ground by asking the right questions and taking action to protect yourself.

There's a debate raging in the world of used automobiles about used car certifications. The certification process was created to increase the attractiveness of used cars and give buyers security about the quality of their purchases. Unfortunately, certification hasn't protected every buyer the way it was supposed to. Some have brought home their certified car only to find that it was in need of expensive repairs to keep it on the road. Even if such repairs are covered by the warranty, buyers are still left with the stress of being without wheels while the problems are fixed.

While no system is fail-safe, the used car certification process can be particularly problematic because there is no standardization. Many companies-automakers and dealerships alike-offer certifications, but each has its own inspection procedures and warranties.

Protecting Yourself
Buyers selfcan no longer afford to make assumptions about what the term "certified" means. Because the self-proclaimed rigorous inspections associated with certification can vary greatly, the best protection involves asking a lot of detailed questions. Find out exactly what the inspection procedure entails, and ask an independent mechanic to get a feel for the types of problems that could slip under the radar. Have him inspect the vehicle, as well.

It's natural to feel that you have some degree of protection because your certified car comes with a warranty. Remember, though, that extended auto warranties, like inspections, can differ greatly. Ask to see the warranty documentation and keep asking questions until you know exactly what is and isn't covered.

You might consider adding another layer of insurance by purchasing an extended auto warranty. These are sold by automakers, dealerships, and aftermarket companies. It may not seem necessary to go this route when you buy the car, but it's pretty likely that you'll appreciate the extra investment sometime down the road, somewhere on the road.

The best advice when buying a certified used car is to make no assumptions about the condition of the car or the warranty. Keep that in mind and your journey should be a safe one.

Car Loan Tips

Finance a Used Car

2008-02-26T08:43:00.000-08:00

How to Finance a Used Car?

Auto owners love the smell of a new car. But those who buy used are willing to forego the distinct aroma in exchange for a lower purchase price on a vehicle. If you choose this route, pay close attention to your financing. Otherwise, the money you saved buying used could speed right out the window.

Used car buyers like to save money. They research their product, kicking tires until their toes hurt. Yet a common mistake among them is to overlook car loans as a critical part of their search for value. Unless you're careful how you finance, you could lose just as much money as you've saved negotiating a purchase price. Here are a few helpful tips to consider as you embark on your search.

Understand how the game is played
Financing plays a key role in motivating the seller. If you're buying through a dealer, be aware that many used car salesman make their money on the "back end" of the deal. This means that they'll be willing to take a small profit off the price of the car in the hopes that they can make money on the financing end of the deal. Before you agree to any financing packaging, compare the specifics of each dealer's offer with the rest of the market.

When you buy through a private party, the seller wants to choose the buyer who'll close the transaction soonest. If you're pre-qualified for a loan before you enter into the negotiating process, you're at an advantage. If you're in competition with another buyer, you may be able to tip the odds in your favor.

Research your financing up-front
Before you even start researching used cars, take care of the financing. Begin by reviewing your credit score. Lenders consider your score when determining your interest rate and repayment terms. If your credit report has errors that are lowering your score, it could negatively influence the quality of your loan. You'll want this cleared up before you begin shopping for lenders.

After your credit report is in tip-top shape, start shopping for finance options. Search the Internet, visit with local lenders, and ask your friends for referrals. Compare lenders' rates, repayment plans, and overall customer service. When you've chosen a good lender, get pre-qualified for a loan. It will give you added leverage with private buyers, and provide you with a comparison when you consider a lender's program.

People buying a used car can't resist the urge to start kicking tires. But it's the wise shopper who kicks a few lending institutions first. Get your financing ducks in a row before you start shopping. It's the best way to ensure that you retain the value that comes from buying a used car.

Car Loan Tips

Family Car Loan Values

2008-02-25T08:32:00.000-08:00

Finding the Perfect Wheels

From the Beach Boys' "409" to Prince's "Little Red Corvette," cars have long been sources of inspiration and entertainment. Vehicle strength, speed, and personality have all found their way into lyrical expression. It hasn't happened yet, but someday the radio waves may also carry the ballad of automotive safety. No matter what, before you take out a car loan, investigate the safety of the auto that suits your family best.

Safety stats

Vehicles are tested on many different parameters, but two of these are particularly relevant to families with children:

-Crash protection. The National Highway Traffic Safety Administration (NHTSA) administers full frontal and side impact crash tests, which reveal how well a car's safety belts and airbags protect its passengers. Vehicles are rated on a five-star scale, with more stars indicating a lower chance of serious injury. Certain types of rear side-impact air bags can, upon deployment, potentially injure children. To minimize this risk, the Technical Working Group developed voluntary side-impact air bag guidelines. Compliant vehicles are rated M for "Meets Requirement."

-Rollover resistance. The NHTSA also measures rollover resistance on a five-star scale. This rating is based on a dynamic rollover test, and physical calculations of the vehicle's center of gravity and track width.

Choosing and purchasing your family car

Low rollover statistics, good crash-test ratings, an M rating on side-impact air bags, plus anti-lock brakes and electronic stability control, should all be on your must-have list. You can investigate this material online. Check the vehicle's driver's seat blind spots, the accessibility of window switches for straying little fingers, and the ease of the child-seat attachment system.

Once you've triple checked and approved the safety features, a salesman will no doubt appear with a car loan contract and financing agreement in hand. Remember, you're not obligated to accept the dealership's financing. Shop around for the best rates by checking with consumer banks, online banks, and credit unions. If you're a homeowner, compare home equity loan rates or consider a mortgage refinance, as this may be an economical option for you.

With this lingo floating around in your head, you might be inspired to express your newfound safety knowledge in song. Just make sure that the kids are buckled in before you head off to the recording studio.

Car Loan Tips

Found Money: Car Loan

2008-02-25T08:23:00.000-08:00

Buy a New Auto with a Cash-Out Refinance

A home and a car are two of the biggest purchases most consumers will ever make. But it may surprise you to learn that one can actually help you buy the other. That's right -- you can use a cash-out mortgage refinance of your home loan to buy a new automobile. This method of financing provides a number of advantages, many of which could prompt you to start your engines and head for the nearest lending institution.

Smooth-running mortgage money machine
A cash-out refinance will require refinancing your first mortgage. You'll need to follow the same application and qualification process that you used on your original loan. After closing the refinance, the lender will cut you a check for the cash that you've withdrawn. You can then use this cash to purchase your car.

Tax-deductions and low payments
The advantage of using a cash-out mortgage refinance is that the interest you pay on the loan is tax-deductible. Also, the mortgage rates tend to be lower than those offered by most automotive credit departments. Plus, a favorable mortgage rate can combine with a longer repayment term to provide you with a lower monthly payment.

Second mortgages roaring into first place
If you're looking for a loan that doesn't carry the closing costs of a first mortgage, consider a second mortgage, which includes a fixed-rate home equity loan or a home equity line of credit. You'll be borrowing at a slightly higher rate; but if you plan to pay back the loan quickly, this might be a wise alternative. A second mortgage is an especially good option if your first one has a low rate locked in.

Using home equity to buy an automobile isn't an automatic decision. But if the tax-deductibility and lower monthly payments are appealing, a home sweet home could be just what you need to buy a car sweet car.

Car Loan Tips

Auto Warranties

2008-02-25T08:12:00.000-08:00

Used Cars and Auto Warranties

For people who buy brand new autos, there's nothing like that new car smell. That's not the case with used car buyers, who've come to learn not to judge a car by its aroma. They think that new cars stink, especially when they realize that most autos depreciate 15 percent or more the moment they leave the lot.

Extended Warranties

Used car buyers sniff out value, which is why a used extended auto warrant generates so much appeal. The right warranty can lengthen the life of a car in a very economical fashion. Here are some tips if you feel that this idea warrants further study:

Take more than a peek under the hood. Before you start shopping for a used auto warranty, learn everything about the mechanical history of your car. With the vehicle identification number (VIN) of your car in hand, visit carfax.com to find information on the history and previous owners of your auto. Ask a mechanic to thoroughly inspect the vehicle. It might cost you extra upfront, but it will pay enormous dividends down the road.

Check the current warranty. Once you've established that the car is in good automotive health, find a warranty that will keep it that way. If you're lucky, the used car might still have a manufacturer's warranty in place. These types of warranties are comprehensive and usually tough to beat.

Extend the car's life with an extended warranty. If there isn't a manufacturer's warranty on the car, consider buying an extended warranty. These generally cover autos up to 150,000 miles. Find one that covers more than just mechanical breakdowns. Look for one that also includes wear and tear. Make sure that the auto warranty covers the big-ticket repair items, such as work on the engine, transmission, fuel pump, timing belt and more.

Used car extended warranties are plentiful. So be sure to scour the Internet and price a potential one carefully. With some diligence, you'll find the right deal that will help keep your car on the road, and your cash in your wallet.

Car Loan Tips

Your Next Car

2008-02-25T08:06:00.000-08:00

Should You Buy or Lease Your Next Car?

Deciding whether to lease or buy a car outright is a big decision. If you lease, you don't need to worry about wear-and-tear, or large maintenance bills. If the car is in good condition and under the mileage limit, you can return it after the lease term expires and choose a new one. In most cases, you can even drive away with the latest model with less cash upfront. A lease may also offer lower monthly payments, especially if you have good credit. However, leasing means that you're subject to mileage and other restrictions.

Alternatively, if you decide to buy, the car belongs to you. While leasing carries an ongoing monthly expense, purchasing outright means that there's an end to your payments. On the plus side, there are no mileage limits. On the down side, however, all maintenance costs are yours. And as car prices continue to rise, you may be forced to keep your car longer than you might ordinarily like.

Financial considerations

If you buy, financing can be a concern. Unless you have a big bank account, or an inheritance, you'll likely need an auto loan. Car loan rates for both new and used car loans vary significantly from lender to lender. There can be as much as a two percentage point difference. Shop around for the best auto loan.

If your credit isn't perfect, finding reasonable rates can require legwork. To get the best bad credit loan you can, shop rates at several different lenders. If your credit score is less than 600, you're in the high-risk group. In that case, don't just talk to conventional lenders-look at sub-prime lenders who specialize in bad credit car loans.

When your credit score has improved, you can always refinance car loan rates. Refinancing carries a number of benefits, namely, lowering your interest rates and reducing your loan payments by extending the loan term. Even if you have good credit, you may still benefit from refinancing if the current refinancing rate is lower than your original car loan rate.

Car Loan Tips

Buying a Used Car

2008-02-25T07:59:00.000-08:00

Buying a Used Car: Financing Tips

Money talks. And when it comes to buying a used car, not only does it talk, but having your finances in order can help you talk so well, you can smoothly close a deal that serves your best interests. There are basic rules to follow when buying a used car, such as an inspection by a mechanic, comparison-shopping, and tracking down the car's maintenance record. Additionally, an important and often overlooked rule is to have your financing ducks in a row before you kick a single tire. Failing to do so might make you want to kick yourself.

Four invaluable ideas

1.Clean your credit. Before you shop for a car loan, examine your credit report. Any of the three credit bureaus (TransUnion, Equifax, Experian) can provide you with a report for a minimal cost. Make sure that there are no mistakes- a clean record will get you a stellar rate.

2.Start loan shopping early. Shop around for the best auto loan you can find. Look into local banks and credit unions, which tend to have the best rates. They may also cut you a nice deal, especially if you have an account with them. Don't be shy about investigating cyber space. Many lenders will bid via the Internet for your business.

3.Use pre-approval as leverage. Tell the seller that you've got a car loan in hand. You're a much more attractive customer if you have the power to close a deal with the stroke of a pen.

4.Remember where the dealer's bread is buttered. Many people tend to go with dealer financing if the salesman offers a lower sticker price, but buyer beware: A lower price tag means the dealer gets paid on the back end from the in-house financing deal.

The moral of this dollar-saving story is to get your financing established before you start comparing used cars. Not only will it add to your negotiating power, it will allow you to focus on what's under the hood instead of what's in your wallet.

Car Loan Tips

Auto Loan Basics

2008-02-25T07:52:00.000-08:00

Auto Loan Basics Tip

Have you fallen for the latest and greatest that the auto world is offering? Does the sound of a car salesman jingling keys sound like wedding bells? If so, it's time to hit the brakes. While you may love your car, you must respect your wallet when it comes to purchasing that ton of metal that brings with it a ton of additional expenses. Here are a few things to consider before taking the plunge.

Affording the new car smell. Begin by taking the time to make sure you can afford a new (or used) car. Tally up the monthly expenses, including car payment, insurance, gas, maintenance, and a ballpark guess at repairs. Compare the final number with your monthly income. General wisdom says that a car payment shouldn't exceed 20 percent of your net income. (Hint: Select a longer loan term to make the payment affordable.)

Head to the lending highway. Once you know what you can afford, you'll need a lender. Your first stop should be at a credit union or bank. Auto dealer financing is also available, but they tend to have higher rates. If you've considered taking an auto loan from friends or family, be certain that you can make the monthly payment. Otherwise, you might be taking Uncle Bob for a ride.

Pick a loan option like you'd pick a car. Not only do you need to find a lender, you need to pick the right kind of auto loan, just like you need to find the right kind of car. Tax-deductible mortgages are a great option, from cash-out first mortgage refinancing to home equity loans. Auto loans also work if you're not a homeowner or don't have equity to tap. No matter what loan option you choose, good credit usually will land you a great rate.

If you're head over heels in love with a new set of wheels, try not to make an emotional purchase. Take a deep breath, and follow the tips above. Once they've steered you in the right direction, you and the car of your dreams should live happily ever after as you drive down the highway of life.

Car Loan Tips

Auto Loan Refinance

2008-02-23T05:28:00.000-08:00

The Best Time for an Auto Loan Refinance

Car enthusiasts tend to place a lot of emphasis on speed. When it comes to refinancing a car loan, however, it's not the car owner who gets to the bank first who wins the race. The person who shows up at just the right time is the one who takes the checkered flag.

An overhaul for your auto loan

The most obvious indicator that you need an auto loan refinance is a dip in interest rates. Shop around at different lenders, and let them know that you're looking for a certain rate. The good loan officers will give you a call if the rates drop to your magic number. Many online services also provide this function.

Not everyone refinances based strictly on rates alone. Some people choose to refinance their car as a method of debt consolidation. They might, for example, roll their credit card debts into their car loan. This might work if you're renting, and your credit cards are at a higher interest rate than a potential car loan. If you're a homeowner, you might want to consider a home equity loan with tax deductible interest.

You can also refinance a car loan if you're planning to keep it long after it's been paid off. Many times, automobile owners refinance simply to boost their cash flow, understanding that they're stretching out their payments a few years.

Keeping your current loan in gear

There are plenty of reasons why you shouldn't refinance your auto loan. The primary reason is that refinancing involves lengthening your repayment term. You may be choosing a refinance because you're experiencing some short-term financial pain, but a refinance could stretch your payments out for years.

If you plan to sell your car in the next year or two, you can't refinance it. That's because you'll have to finish up loan payments, and you won't be able to sell a car if you currently owe money on it.

You'll also want to take a careful look at the interest rates of car loans, especially if your original one was for a new car. Rates on new auto loans tend to be lower, so refinancing will cost you more over the long haul.

Peeling rubber and flying from 0 to 60 in seconds may be a ton of fun when you're behind the wheel, but it doesn't make much sense when it comes to auto loans. It's important to take your time-not rush to a quick decision-when you refinance. Carefully analyze the current rate environment and the age of your car, before you make a move to refinance. You don't need to drag your feet, but you should absolutely proceed with the caution of a yellow light.

Car loan tip

Common Car Purchasing

2008-02-23T05:23:00.000-08:00

Five Common Car Purchasing Errors

When learning to drive, many people practice in empty car lots or on country roads. When you're buying a car, you don't get to practice. You only get one shot-so be aware of five common car purchasing errors.

The problem with buying a new car is that these four-wheeled babies are too much fun. Cars are sleek, stylish, and can truly be a reflection of your personality. Since the best ones cost the most money, it's easy to find yourself way in over your head on a monthly basis paying for what you love.

Avoid making the wrong decisions by steering clear of five common car purchasing mistakes:

1. Buying based on wants, not needs It's too easy to buy the hottest-looking car on the lot. To avoid this temptation, spend a few rational moments writing down how you'll actually use the car. Consider how many miles you drive, and the weather conditions that your car needs to be equipped for. This exercise should help you determine what kind of car would be ideal for you.

2. Budget based only on monthly paymentPut together a budget to decide exactly how much you want to spend on a monthly basis. Don't stop there-it's all too easy for a finance manager to put together an auto loan package that gets you a low auto loan payment. The problem is that you'll be making payments well past the day that your sleek car isn't so sleek anymore. Instead, decide how much money you're willing to spend overall, and how soon you'd like to pay it off.

3. Start talking trade-ins right awayIf you want to trade-in your car, don't tell your sales person until after you've negotiated the price of the new car. If you let them work it into the deal earlier, your final numbers could be skewed against you.

4. Not investigating car dealerDo as much research on the car dealer as you do on the car. Find out if any of your friends or family has done business with the dealer you have in mind. Check with the Better Business Bureau, as well.

5. Sticking with one dealer's loanIf you've got the right dealer and the right car picked out, take a few extra days and make sure that you've got the right car loan. Shop around for the best rates and fees, and go with a reputable lender. It need not be the dealer selling you the car.

You can practice the process of buying cars as much as you want, although it may get costly over time. A more budget-friendly alternative is to take your time, and carefully assess each move that you make. Keep this list of common errors handy, and review them throughout the process. Take it slowly and do it right. In the end, you'll have the car you need at a price you'll love. Driving the wheels you want at the deals you want will make for smoother, happier driving.

Car Loan Tip

Refinancing Your Auto Loan

2008-02-23T03:47:00.000-08:00

Refinancing Your Auto Loan

Many people don't realize that when interest rates drop, they can refinance their car loan just as they could their mortgage. It's an easy process that could save them substantial money every month.

If you're like most people, you love your car…except for the loan payments. Perhaps each month, as a certain date gets closer and the money in your bank account shrinks, your upcoming car payment seems harder and harder to make. There is a way to make them easier to handle, though-just refinance your auto loan.

Is refinancing for you?

By refinancing the loan, you can save money every month. It can also enable you to pay off your car loan sooner. This could happen if you refinance to one with better repayment terms. Although it may sound a little scary, it's actually much easier than refinancing your home. Plus, the money saved each month can be substantial.

The best time to refinance is when interest rates are dropping, although it can also be a lifesaver anytime if you need to lower your monthly payments.

It's not a good idea to refinance if you already have a good interest rate on your car loan, or are close to paying it off. However, it's worth a few phone calls to see what the difference in payments might be. Even if you're able to keep the same payment amount, but shorten the term of the loan by a year, it's worth investigating.

Six steps to an auto loan refinance

If you've decided that refinancing your auto loan is the right choice for you, rest assured that the process is not difficult. However, most lenders won't refinance the car loans that they originated, so you'll have to shop around for a new lender. Here are six steps to take:

1.Check your current financing contract to determine your current APR. Also, check to see if there are any pre-payment penalties.

2.Call your lender to find out the payoff amount.

3.Examine your credit report and make sure it's as clean as possible. Higher credit scores equal lower interest rates.

4.Speak with several different lenders to see if they're offering an APR at least 1 percent lower than your current loan.

5.Ask your new potential lender if there are any additional fees. If there are, they should be minimal. If not, keep shopping. Note: Refinancing does not require a new appraisal of the car.

6.Make sure that you know the correct name on the current loan account, the loan account number, and your VIN number.

With all these things in hand, you're ready to apply. The good news is that you should have an answer back within a day or two. It's that easy.

Most people don't know that, just as you can refinance a home, you can refinance your car. It's a simple process and could cease making those monthly bills such a scary sight.

Car Loan Tip

Car Loans

2008-02-23T03:29:00.000-08:00

Car Loans Tips

Are You the Ideal Borrower for a Car Loan?

When you are looking for someone to loan you money, no matter what the purpose, you want to be as attractive to that person as possible. So, who do lenders feel most comfortable with when writing car loans? An excellent credit score as well as a low debt-to-income ratio always makes you attractive to a car lender. In addition, many banks and traditional lenders prefer to lend money for new cars.

If your car loan will be written on a used vehicle, and it is a newer car model, less than the book value, and you have a relatively short repayment schedule, your car loan will look more attractive.

Car Loan If You Are Not the Ideal Borrower? - Bad Credit Car Loans
Bad Credit, borrowing money for an older car, or needing to finance for an extended period are all reasons that a lender may look cautiously at your loan application. If you are unable to get a car loan, you may ask what would help your case. Often a small down payment may be enough to ease the lender's mind.

If traditional financing is out of the question, the next step is to attempt to get financing through the dealership. Most dealerships offer this service, and would prefer to finance your loan as well as sell you the car. The interest rate will likely be higher than through a bank or online lender, but still reasonable. The dealership who, of course, wants to sell you a vehicle, will often act as an intermediary between you and the lender, and help work out a deal.Other Choices in Financing Your Car - Refinance or use a HELOC

If you are unable to obtain a car loan through a traditional or online lender, or through one of the major motor company's credit department, you are left with a few options. If you own your home, you can take out a 293 to pay for your car. The interest rate is reasonable, and you can normally write-off the interest on your taxes, but, you stand to lose not your car but your house if you default.

If your need for a vehicle is not immediate, try saving money for it. Put away the amount of money that would go towards a car payment every month. You may not be able to wait long enough to buy a new car, but if you are faithful with this savings plan, you can easily sock enough cash away to by a reliable used car. In addition, the practice of saving that money each month will be beneficial when you are ready to take on a car loan.

As a last resort, you may have to consider buying a car at a "buy here, pay here" car dealership. These places do not require a credit check, but you will be paying a high interest rate, and you cannot miss or even be late with one payment, or they may repossess your car. Deal with these types of dealerships only as a last option.

Car Loan Tips.