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Recent Posts
5 Things In Your Credit Report You’ve Got To Know About
How much do you know about what’s in your credit report? Many people may be …Read More »
Key To Raising Your Credit Score Using Credit History
Believe it or not, credit history has a huge impact on your overall credit score. …Read More »
How Length Of Credit History Affects Your Score
The amount of time you’ve had credit makes a difference in your credit score. In …Read More »
6 Tips For Pulling Your Credit Score Out Of The Dumps
in Credit Scores/by New Opportunity ProviderA shaky credit score means the difference between getting approved for a loan and being denied. And when you’re ready to go for that first home, or new car the last thing you want is to be denied. If you know your credit is bad, there’s no time like now to make steps towards improving it. Repairing your credit score won’t be a quick fix, but with a little consistency, it can be done. Here are some ways to start repairing your credit score:
No matter how horrible your credit report may look, it can be improved over time.
Buyers Ulitmately Pay a Price in PMI for Their Low Down Payments
in Mortgages/by New Opportunity ProviderMortgage lenders have begun requiring home buyers to either make a 20 percent down payment or buy private mortgage insurance in the wake of the mortgage meltdown. Some mortgage lenders have reduced the required down payment in the last couple of years, and they will now accept mortgage loans with only 5 percent or 10 percent down.
Even with a lower down payment requirement, mortgage lenders will require private mortgage insurance as a safety net for protection against the buyer’s possible default or failure to make payments on the loan. Lenders remain tough on borrowers as they are will require good credit and a low-debt-to-income ratio.
This is the main reason that making a significant down payment on your home is important. Private mortgage insurance is unfortunately expensive. The fees will inevitably vary based off of your credit score and the amount placed for down payment, but they can range from about 0.3 percent to 1.5 percent of the total loan amount. The amount that PMI typically adds to your annual mortgage payment is about 0.5 percent of the total loan.
Borrowers can actually pay for private mortgage insurance with a large upfront payment, but most PMI policies will require the monthly payment.
Your lender is required by law to let you know when you close on the house how long it will take to pay down the loan enough so that you can cancel mortgage insurance. This will usually take up to several years. Your lender is required to automatically cancel PMI once your outstanding loan balance falls to 78 percent of the home’s value.
Mortgage lenders must also provide you with an annual statement that tells you where to call for information about canceling your mortgage insurance.
Whether your PMI premiums are actually tax-deductible is inevitably decided by Congress and may vary by the year. Check with your tax preparer to see if your premiums can be considered deductible.
Get Control Of Those Hectic Interest Rates In Two Simple Steps
in Credit Cards/by New Opportunity ProviderAre you throwing a lot of money at your credit card debt, but aren’t seeing a real difference? This is common where the borrower may be making the monthly payments on time, but still seeing a high balance.
Here’s the issue. If you’re carrying around a $5,000 credit card debt where you’re making the minimum payment of let’s just say $200 per month, most of that money is going directly towards interest. At that rate, you could be years paying that off. In cases like this, you need a smart plan. One that’ll get you out from under the clutches of those high interest rates and into the “arms” of 0% APR.
The first thing you should do is find a credit card that’s offering a 0% APR for at least 12 months. Once you find that card, you want to make the transfer from your old card to your new card.
After the transfer, keep up with the same monthly payments you’ve been making. This money is now going straight to principal. Before you know it, your balance will be down considerably.
Try this right away to get a handle on those hectic interest rates.
Steps To Take Before Your Payday Loan Defaults
in Loans/by New Opportunity ProviderHave you gotten yourself into hot water because of a payday loan? These loans may seem like the perfect solution to your problems at first. Especially, when you need it for an unexpected expense. But if you aren’t careful, you may find yourself falling into default.
The first time you’re unable to pay back your loan on time, you’ll be charged an additional fee. If that happens too often, the amount you have to pay back will become larger, making it nearly impossible to find relief.
Of course, the best way to avoid this is to handle it before it defaults. Here are a few ways to catch your payday loan before it goes it’s too late.
If you haven’t done so already, check to see if you qualify for an extended payment plan (EPP). Be sure this is done before your due date.
If at all possible, try and pay it off completely as soon as possible. These loans are so vicious that you don’t want them lingering any longer than they have to.
Is your credit score 600 or above? If so, you may be able to take out a loan with a traditional lender or maybe even a credit card that you can use to pay off the payday loan. One of these options will give you more breathing room when it comes to interest rates and payment schedule.
Talk to a nonprofit credit counselor. They may be able to help you negotiate something with your lender.
If you feel that your lender is acting unreasonable, you may be able to report them to the Consumer Financial Protection Bureau. Their number is 8554112372.
4 Things You Should Know About Payday Loans Before Getting One
in Loans/by New Opportunity ProviderWhen you’re strapped for cash with nowhere to turn, taking out a payday loan may seem like a great quick fix option. But what most people don’t realize is that pay loans are usually the beginning to a vicious cycle of “catch up”. The borrower usually takes out a certain amount of money and in return they have to forfeit that portion of their paycheck. Because the borrower is already strapped for cash to begin with, they end up needing to take out another loan just to cover the amount they just lost.
Before ever taking out a payday loan, here are 4 things about them that you need to know:
Know About Your Mortgage Loan Possibilities Before House Hunting
in Mortgages/by New Opportunity ProviderObviously, everyone should know exactly how much house they can actually afford to buy before they end up going online to shop or begin cruising neighborhoods scouting out the “For Sale” signs.
Generally, you can expect to acquire a home loan that is roughly two and a half times your gross annual salary. Your gross annual salary is essentially the total amount you earn in a year before taxes are deducted.
Mortgage lenders will use this to calculate your loan eligibility based on your income, credit and debt. A poor credit history and heavy debt will create a significant sense of unease on the amount lenders will be actually willing to risk. Another way to look at the amount you should borrow is to make monthly mortgage payments that are no higher than 36 percent of your gross monthly income.
Lenders can tell you if your other debts or financial obligations will reduce the amount of mortgage they will lend. A good way to finally get started is to get pre-approval from a lender. You will want to get a rough idea of what you can actually afford by finding an online mortgage calculator even before you begin to consult a lender. Some reputable online mortgage calculators include money.cnn.com and bankrate.com.
Mortgage calculators will tell how much your monthly payments would be based on the loan amount, loan term and interest rate. However, they don’t address the down payment you will make, and that amount is another important factor in how much you can actually afford.
A 20 percent down payment can open the door to getting a larger home loan, while one below 20 percent probably means you will need to put some effort into finding a lender. Some private lenders may actually accept less. Also, public agencies can provide you with a low down payment loan through private mortgage companies and banks. Be sure to check with the Federal Housing Administration, Fannie Mae, Freddie Mac and the Department of Veterans Affairs if you are interested in a loan with a down payment below 20 percent.