Category Archives: Finance

The Different Types of Mortgage Rates

applying for mortgageDifferent people have diverse needs. Since mortgages are designed to meet people’s needs, they are packaged differently, each trying to meet various needs. This suggests that mortgage rates are not standard.

If you consult with a mortgage lender in Portland, you will know that borrowers with high credit scores often get lower rates. Depending on the type of loan you want, mortgage rates will vary.

Conventional mortgage rates

Mortgages by either Freddie Mac or Fannie Mae are referred to as traditional mortgages. Their securities control the prices so that the Fannie Mae rates will depend on their bonds, for instance. The most common program here is the 30-year fixed-rate in which home buyers make a 20% down payment. Bundled with the Freddie Mac and the Fannie Mae are loans like HARP refinance, Delayed Financing, and HomeReady loan.

FHA interest rates

These are rates for Federal Housing Administration-based insurance. Available all over the U.S., these loans are most preferred by home buyers who want a low down payment. The FHA requires just 3.5% as down payment. The rates are determined by the GNMA (Government National Mortgage Association) bonds. When these rates go up, the FHA loan rates drop.

VA interest rates

Also controlled by the GNMA mortgage-backed bonds, these rates tend to work alongside the FHA rates although they are often lower. When the Department of Veterans Affairs guarantees a loan, the recipients use these standards. U.S. veterans get 100% financing without the need for mortgage insurance.

The government also controls USDA interest rates, which are for borrowers in the suburban and rural areas all over the country. They are guaranteed by the government, which allows you to enjoy a rates discount. Whatever the case though, mortgage rates will be unpredictable. However, if you know them, you at least stand a better chance to get the lowest rates possible.

Cash Flow Problems? It Could Be Your Employees

Cash FlowCash flow – it is always a business’s sticky situation. Many things can cause it to disappear very quickly. One of these is your employees.

How can employees drain your business financially? Here are two ways.

Employee Theft

Many employees steal. In fact, more than 70 percent of them do it. They are also doing it habitually. In a 2017 survey by the National Retail Federation, the inventory shrink rate went up. About 36 percent of it was due to shoplifting while 30 percent was because of employee theft.

The average cost per employee theft was almost $2,000.

Solution: Implement penalties or punishments against those who steal. Since employees are more likely to steal a lot of money through manipulating the accounting books, businesses should invest in online bookkeeping app or software to establish control, accountability, and automation.

Employee Turnover

Businesses lose employees for a wide variety of reasons. Some of them leave due to better work opportunities. Others you have to terminate because of poor conduct or work ethics. Either way, you are bound to lose money.

In 2012, the Center for American Progress published a paper concerning the high cost of employee turnover, especially for high-skilled work. It can be as much as 213 percent the annual salary for the position. Overall, it can be between 10 and 30 percent.

Meanwhile, a bad hire could cost the business around 30 percent of the employee’s earnings for the first year. The spending usually goes two things: the re-hiring process and retraining. However, a high employee turnover rate can also affect productivity, which also translates to more losses.

Solution: Set up an employee retention program. Constantly measure the turnover rate and, most of all, know the reasons. This way, you have better knowledge on how to manage the problem.

There is no foolproof plan to avoid these two employee-related issues, but you can minimize them from happening. Most of all, you can learn some ways to protect your cash flow as much as possible.

Mortgage Loans Dos and Don’ts: The Home Buyer’s Guide to Getting Approval

man wearing a suit sitting in a table showing a mortgage loan contract and where the signer must signBuying your first home can be horrifying. With all the paperwork, the potential rejections that you will encounter, and the fact that this will probably be the biggest purchase of your life, you would quickly assume that this process isn’t for the faint-hearted.

Suppose you have great credit and no history of bankruptcy on your record, there are a few tricks you can use to boost your odds of getting approval. Here are some dos and don’ts to secure a loan as recommended by American Loans, a top mortgage company in Salt Lake City:

DO save for a down payment early.

Usually, lenders would ask a down payment of 20 percent, but there are also lenders with programs that would go for as low as three percent. However, these programs would equate to higher costs and insurance. Saving up early would help you get the approval and save on extra fees.

DON’T forget to check your credit score.

Your credit will determine the interest rate and your loan terms. Before you begin this process, don’t forget to check your credit. If there are errors that you need to discuss, do it early. In addition, look for opportunities to improve your credit.

DO compare mortgage options.

You will find yourself bombarded with a lot of loan programs, that’s why it is good to do research which ones will be perfect for you. Check if you can afford large monthly payments right now, or if you can afford to do so in the future, this information would determine which program you should be going for.

DO get a preapproval letter.

Getting prequalified would just mean knowing the amount the lender can give you based on the information that you have. It’s smart to get preapproved. It can help you look more credible to sellers and even give you an advantage.

If anything goes downhill, let it be the push for you to work on your credit and finances the next time. Look for the things that you didn’t see the last time. You can find other people you have been rejected multiple times but got a house in the end. All you have to do is to start a plan and work hard for it.

4 Common Types of Personal Loans

CashThere are different types of loans, and personal loans are one of them. It is a kind of loan where you can pull out some cash for you to use during an emergency, planning a wedding, going on a vacation or for your home renovation, among others.

Such cash loans are highly accessible in Salt Lake City and come in different types. These can all be applied for and given by appropriate banks and lending institutions. Knowing the different types of personal loan can help you choose which type is the best for you.

Types of personal loans

  1. Secured loan

This kind of loan is called as such because a “security” is offered to the lender. This can be in the form of a car or property that serves as your collateral. Failure to pay the amount you borrowed and its interest means your lender can claim your assets.

  1. Unsecured loan

The opposite of secured loans as there is nothing that serves as collateral to the lender. Due to your high credit ratings, your signature is enough security. However, this means higher interest rates and stricter approval processes.

  1. Line of credit

One of the best loan types to use during emergencies. A line of credit loans allows you to overdraw your credit to an amount fixed by the bank and you only pay the interest on the amount that you used.

  1. Payday loan

Known as cash advances, payday loans are one of the most expensive, but common loan types. This uses your next paycheck as a security topped with high-interest rates plus fees. This short term loan is best used for extreme emergencies.

Not satisfied with the types of loans presented? There are tons of other loan types you can choose from. Talk with your lender and see which loan type fits you and your financial capability.

The Cash Loan Practices Smart and Savvy Borrowers Have

Approved LoanThe remaining controversial and stereotypical attitude towards personal loans, such as cash loans and payday loans, doesn’t eliminate the fact that the demand for these financial services continues to grow. With the ease of application and speed of approval, it should no longer come as a surprise that many consumers still opt for this type of quick cash assistance.

The key to being a successful borrower in Sandy, Utah is having a better understanding of cash loans. Note that many borrowers found and continue to find these financial products a big help in times of need. That's because they implement the following smart and savvy borrowing tactics, which you should use as well:

Exploring all options first

The first thing you should do is know your financial situation and find out what viable options are available. Base this on the amount of money you need and how soon you need it. In case you need it as soon as possible and you don’t need something as big as the minimum loan amount most traditional lenders offer, then a cash loan may be the right solution.

For instance, you can’t afford to wait for weeks because you have to pay for something the next day and the guaranteed income you have won’t come in until after several days. In this case, a quick cash loan can save you from bigger financial troubles.

Understanding that lenders vary

Like with any other lending institution, lenders that offer cash loans charge varying rates for their services. As such, you should treat it the same way you do banks and credit unions. Perhaps you need the money as soon as possible, but you should still take some time to find a lender who offers the best rates. Even a tiny difference matters.

It’s easy to remain a responsible borrower and pay off your cash loan, as long as you maintain the proper borrowing attitude. Use this guide to achieve your financial goals.

Bills and coins above loan documents

The Different VA Loan Repayment Options You Can Choose From

Bills and coins above loan documentsWhen availing a VA home loan, you need to consider the different options for repayment before anything else. Of course, you’ll need to choose the one that will be easy for you to manage.

Primary Residential Mortgage, Inc. and other professionals in the field list the different VA loan program repayment options you should take note of:

Traditional Fixed Rate

This type of repayment option comes with a fixed interest throughout the life of the loan. As it is stable, you can predict your regular payments over the entire loan term. It is ideal if you have a low-risk tolerance level. Shifts in the economy will have no impact on the principal or interest. The interest rate will only change through refinancing.

Traditional Adjustable Rate Mortgage

An adjustable rate mortgage loan comes with more risk, but the potential rewards are greater. Economic indicators dictate interest rate adjustments. The margin of the lender also matters. With the recent problems encountered by the home market, it is crucial to weigh your options well before considering getting an ARM. It is ideal if you are planning to refinance your home in the future using a program where you can renegotiate the terms.

Hybrid ARM

A hybrid adjustable rate mortgage loan has a fixed rate at the start. This often applies to the initial three years. The rate then gets annual rate adjustments. Like a traditional VA ARM loan, there is a 5% cap for the duration of the loan. This type of loan repayment plan is suitable for homeowners who intend to move after a few years. This is a good option if you are in active service, and you expect to move once you receive a new assignment.

These are the main types of repayment options that you need to consider. Like traditional home loans, VA loans may last for 15 to 30 years. Thus, it is important to study your options well. This way, you can protect your investment, and make sure that you can manage your loan in a proper way.

Avoid Getting Into Debt with These Foolproof Plans

Man swiping his credit cardThere are many ways to find yourself deep in debt. As a matter of fact, for most people, spending more than they can afford is easier than saving money. The trouble is when you are no longer able to enjoy the fruits of your labor because every cent you make ends up going to payments and that’s not even enough, so you have to borrow more money to cover other dues.

To avoid finding yourself in that scenario, there are ways to steer clear of things that can lead to it. Here are some ideas.

Avoid Using Plastic

If you could exist without a credit card, avoiding credit card debt would be easy. But credit cards are not inherently evil; as a matter of fact, you need them to establish a strong credit score. The trick is to keep it at home. If you do use it, make sure you have the money to pay the full amount when it’s due, instead of just paying a portion or the interest. Some people use their card only for emergencies, and there are also those who only use it to keep track of their groceries, then pay the full amount each month.

Refinance Your Mortgage

Stuck with a high interest rate on your mortgage? If the prices of real estate in your area are falling and you’re still paying top dollar, you can talk to a lender for a refinance in Salt Lake City. You may be qualified for refinancing, which can significantly lower your monthly payments.

Don't Take out Any Loans

Apart from your mortgage, don’t take out another loan. Your home may be your most important investment, so it’s fine. But other items are not a good reason to go into debt. Save enough money to buy a used car in cash, instead of signing up for a car loan. And if you can do that with a car, you can do it for other, cheaper things you need.

Cut the Unnecessary

Your cable is one example of something you don’t need. You probably have an Internet connection, so you can stream what you want to watch. Don’t buy pricey appliances you’ll end up not using anyway, just because your friends have them. Live on what you have.

Don't Take Trips

Sure, travel is a way to reward yourself. If you have to do it, do it less often. Open a bank account for it instead of taking out the travel budget from your savings. Look for Groupons and discounted fares and accommodations.

Saving money is a matter of discipline and planning. You can’t just promise yourself to do better next month. You have to start now if you want to avoid getting into debt.

TITLE LOANS with a RED Check Mark

Unique Benefits Of Title Loans That You Should Know

TITLE LOANS with a RED Check Mark

People who are trying to find ways to get some extra cash quickly have most likely considered availing of a payday loan. However, if you have a clear title to your car, there is another way to get the cash you need, probably in a faster and cheaper way than a payday loan.

If you own a car outright, and you have a steady source of income, you can avail of a title loan in Provo from institutions such as Utah Money Center. Here are some benefits that you can expect to enjoy.

Access to Quick Cash

You can get the proceeds of your loan in as fast as 24 hours. To qualify, you only need to show proof of steady income and a clear title to your vehicle. If you meet all the requirements, a representative of the lender will then arrange to have a photo of your car taken, and receive the title.

No Credit Check Necessary

Because a title loan is secured by collateral, it does not need thorough checking of your credit. This is good news if you have a poor credit rating. Having a steady income source provides lenders with the assurance that you can repay the loan. It also helps that the lender has your car title as collateral.

Continue Driving Your Vehicle

You only surrender the title to your car, and not the right to use it while the loan is still unpaid. They will return your title to you once you have completed the required payments. Simply put, your mobility will suffer from a car title loan.

More Affordable than a Payday Loan

Interest rates on a title loan are typically lower than those of payday loans and cash advances. This is because the title to your car serves as collateral, and it provides the lender with a certain degree of security.

When availing of a title loan, make sure that you can afford the repayment terms. Otherwise, you can lose your car to the lender.

How to Get the Best Mortgage Rates Possible

A conceptual look at variable mortgage rates.When buying a new home, one of your major concerns is to get a favorable mortgage rate. One or two percentage points can make a huge difference. It can mean thousands of dollars in savings. Considering that home cost is not cheap, saving a few thousand dollars can be of big help.

There are many ways you can get the most favorable mortgage rates. Salt Lake City has many lending companies who gave the following tips.

Compare Different Lenders

Loan rates vary from one lender to another. If you are a first-time buyer, it may be tempting to grab the first loan offer you get. Depending on the amount you borrow, a fraction of a point difference can cost a lot of money. It is a good idea to shop around first and compare offers from different lenders. Find a mortgage that offers the best possible terms and rates.

Improve Your Credit

Poor credit rating translates to high mortgage rates. It is as simple as that. If you currently do not have an outstanding credit score, work on improving your credit first before applying for a loan. While it may take a little time to improve your credit rating, the results would be worth the wait. An increase of a few points in your score can mean thousands of dollars in savings for the duration of your mortgage.

Be Upfront with Lenders

If there are negative entries on your credit reports that are not easy to repair, be honest and inform your prospective lender about them. Your lender will surely find out about them, so it is better that you air the issues first. Your lender may even be able to offer some advice on how you can fix the problems and get your loan application approved.

Put Up as Much Down Payment as You Can

All lenders like big down payments. So, before finalizing your purchase, make sure to come up with as big a down payment as you can. This way, the lender will have a good impression of you. You will get more favorable mortgage terms. Likewise, you will have to borrow less money with a bigger down payment. As a result, you will have to pay less in interest.

These are only a few tips on how you can get better mortgage rates. Follow these tips and enjoy considerable savings on your loan.

Dealing with Your Insurance Company After a Disaster

Man suffering whiplash after a car accidentIf your property gets damaged or destroyed by fire, you will be looking into filing for an insurance claim. Sadly, not everyone is successful in their fire damage insurance claim. As fire becomes more rampant in certain locations, many insurance companies may find a way to grant you as little as possible in an attempt to cut back on expenses.

United States Adjusters suggests that you keep these things in mind when dealing with your insurance company:

List Everything Lost and File Your Claim Immediately

List everything you lost in the fire while you are still able to remember them. It will also be easier to prove that you’ve lost the items listed if the insurance adjuster can see it for himself, so don’t throw anything until your insurance claim is approved.

Furthermore, be sure to inform your insurance company of the type of loss you have suffered right away. In fact, there is a required allowable time to report the incident after it has happened. You will need to prepare your proof of loss claim, which should include everything you have lost with their corresponding value.

You will also need to include the following information in your claim:

  • The date the incident happened
  • Type of loss or damage
  • Location of damage
  • Injuries incurred from the incident
  • The current condition of your property
  • Detailed description of the damaged items
  • Indicate if temporary repairs are needed or not
  • A police or fire report

Request For an Advance

After filing for a fire insurance claim, you must request for an advance against your eventual claim. As you most likely didn’t have time to grab anything from your home, especially the basic necessities, you need money to buy important items, such as toiletries and clothes. But be reasonable when buying stuff because if you try to overspend, you will be paying the difference.

Keep an Eye on Your Living Expenses

You are entitled to living expenses reimbursement because of the “loss of use” clause in your policy. This, however, will only cover the difference between your daily living costs at home and your costs while displaced.

Be as thorough and organized when claiming insurance for fire damage. Keep track of all correspondence with the insurance company, including emails, calls, and letters, as you may need these to show who said what to whom and when it was said. This will save you from a lot of hardship in the long run.