Monthly Archives: October 2014

What Does It Mean – A Short Mortgage Glossary


When you are seeking a mortgage it may seem that the process has a
language of its own. Many times there are terms used that can be
confusing or unknown, but are important things for a borrower to
understand. The following list contains some of the more common mortgage
terms and briefly explains them. It is not meant to be exhaustive by
any means and it is always important to make sure that you fully
understand any unknown terms you encounter. Don’t be afraid to speak up,
your lender would be more than happy to explain them.

Adjustable Rate Mortgage (ARM)


This is a type of mortgage with interest rates that can fluctuate based
on market conditions over the life of the loan. Typically an ARM will
have an introductory rate and a monthly cap on the maximum monthly
payment allowed.

Amortization

This is
the progression of decreasing principal over the life of a mortgage.
Each loan payment includes a payment to the principal and a payment to
the interest. An amortization schedule is a document that includes each
payment and reveals the changing ratio of principal and interest and how
the principal will decrease over time.

Annual Percentage Rate (APR)


This is a measure of a loan’s full cost and includes interest and fees
in terms of a yearly percentage rate. Federal law requires all lenders
provide their annual percentage rate so borrowers have a way to compare
the total cost of a loan over time.

Assumption

It is an agreement in which a buyer takes over the existing mortgage and the payments to a lender.

Blanket Mortgage

This is a mortgage that will cover at least two pieces of real estate as security for a single mortgage.

Closing

This is the final meeting between a buyer and seller or their agents in which a property legally changes hands.

Closing Costs


These are expenses that are in excess of the purchase price and can
include items such as origination fees, title insurance, escrow costs,
appraisal fees, and others. Closing costs will vary depending on
location and lender.

Consumer Reporting Agency


These are organizations which monitor individual credit activity and
history to determine the risk a lender must take on to provide someone a
mortgage.

Conventional Loan

This is a
type of mortgage that is not insured by the federal government.
Typically conventional loans require a larger down payment and a higher
credit score.

Default

This is the
failure to make mortgage payments as specified in the mortgage
agreement. Defaulting on a mortgage can lead to foreclosure.

Earnest Money

It describes the process of a buyer giving money to a seller that is included in the purchase price to secure a sale.

Equity


This is the difference between the fair market value of a property and
the current amount of debt an individual holds on that property.

Escrow

It is an account set up that the buyer pays into that can cover expenses such as taxes or insurance payments.

FHA Loan


This is a loan that is insured by the Federal Government allowing
individuals who are unable to qualify for a conventional mortgage to
purchase a home.

FHA Mortgage Insurance

Insurance required when obtaining an FHA loan. The insurance amount is paid in monthly installments.

Fixed Rate Mortgage

This is a mortgage that has a locked mortgage rate which does not change over time.

Foreclosure


This is a process in which the lender can force a sale of a property
when a borrower does not meet the terms of a mortgage agreement.

Interim Financing


This involves loans such as construction loans which are temporary
financing options during a building project. Typically a construction
loan will be replaced by a permanent mortgage when the building is
completed.

Lien

A Lien is a legal claim
on a property by a lender which is held until a mortgage is paid in
full. It protects the lender in cases of default.

Maturity

This is the date that a loan’s principal balance becomes due in full.

Origination Fee


This is the fee which includes costs for a lender’s expenses including
loan document preparation, credit checks, property inspections and
appraisals, and other possible fees.

Points


Mortgage Points describe prepaid interest by the borrower which is
assessed at the time of closing. One point is the equivalent of one
percent of the loan amount. Points that are purchased may be able to
decrease monthly mortgage payments.

Refinance


Refinancing a mortgage is essentially taking out a new loan to replace a
prior loan on a property. Common reasons for refinancing are lower
available interest rates or access to funds made available because of
equity.

Security

Security is the property that a lender holds a lien on as collateral for a mortgage loan.

Underwriting


Underwriting is the process of researching and reviewing information
about a borrower and making a determination on approving a loan. It also
includes matching the level of risk with an appropriate interest rate
and loan amount.

These are the most common terms you will need
to know to understand when considering a mortgage. As mentioned before
if you don’t understand a term, don’t hesitate to ask your lender. You
need to understand exactly what you are getting into when applying for a
mortgage.

Debt Management Tips – Balance Transfer Cards And Why You Should Get One

If you’re one of the many people out there living under a pile of
debt from old, unpaid credit card bills, you need to act fast and
resolve the problem before collection agencies start calling you and a
debt collection lawyer in California files a case against you.

The debt you need to pay off covers the original
price of the item and the interest that comes along with it every month.
With each month that the bill goes unpaid, its corresponding interest
will also become higher and higher, hence why you will end up paying
more if you have overdue bills.

Balance transfer

To
stop a growing credit card debt, people often go to banks and ask if
they offer cards that have 0% promotional APRs and allow balance
transfers. Basically, this card pays off the existing credit card
balance by transferring the amount to the new card. Since the card has
0% APR for a certain time, it keeps the balance from growing.

The
cardholder will, however, be charged with a one-time transfer fee,
which is usually around 3% to 5% of the balance. Card holders have to
pay off a minimum fee every month, like all other credit cards, and can
use their balance transfer card as a regular credit card and charge
purchases on it.

Save money

First,
it’s important to understand that you’re looking for a transfer card
because you want to fix your credit problems and get rid of your
existing debt. You have to create a plan that will focus on minimizing
expenses, maximizing how much you make, and making sure that you
regularly pay your credit bill and aim to finish it off before the
balance transfer card’s promotional APR ends. You can also save a lot of
money with promotions that these balance transfer cards offer. Some
balance transfer cards will give you no transfer fees for the next few
months, which means that your debt is not going to grow if you transfer
it to the new card within that certain amount of time.

Save your credit score

Your
credit score has already taken plenty of damage from your previous
debt. Late payments will give you mark downs and will negatively affect
your credit score. It will become worse when you have a case from a debt
collection lawyer in California. By transferring your debt to a new
card and making sure that you pay off your monthly dues, you’re in a
better position to rebuild and repair your credit score.

Financial Services and Finding Clients

A Financial Services Website Design is important for ensuring that
you are positioning your business correctly in the market. When you open
a website for the first time, there is a tendency to assume that the
way it looks does not matter. However, presentation is everything when
it comes to making money in a market that is flooded with choices. If
you plan on attracting customers through the use of a website, you need
to look at it as the storefront that people will come into contact with
when learning about the services that you are offer. As you know, the
impression that you get of a business will often determine how you spend
your money.

In fact, you may choose to avoid spending any money
with a business simply because they lack the professional presentation
that you come to expect. If you can understand the value of having a
professional look when it comes to the way that you spend your dollars,
you also want to take this into account and rely on a Financial Services
Website Design that would enable you to ensure that your website looks
great while doing an amazing job of allowing customers to discover
everything that you offer and how it can benefit them. A hurdle that you
will face in the market is the fact that most potential clients do not
know what you are offering to them. However, you can use your website as
an effective way of getting this information to them.

Additionally,
the correct approach to the look of your website helps to ensure that
clients are able to come to you with any questions that they may have.
When people have an easier time getting around your website, they will
not hesitate to take advantage of what you are offering. Additionally,
this would result in the average person spending more money on your
services than they otherwise would. If you do not have the best
Financial Web Design, you run the risk of having a website that will
limit the amount of people willing to spend money on your services.

Additionally,
you will find that customers generally only visit your website based on
the most highly demanded services that you are offering. Solving both
of these problems can be very important, this is the only way that you
can ensure profits that would keep you in a comfortable position. No
matter what you hope to accomplish through your Internet website, you
will need to pay for the most effective designs.

When you know
that your website is done correctly, you will never have to fear the
loss of customers that can cost you a lot of money over a short period
of time. Making money online is a goal for any business that attempts to
open a website. Remember that there is a way to accomplish this goal,
pay for design that delivers your services, this will make it easier for
you to increase your profits and find new clients.

Know All About Your Mortgage Before You Choose One


With the rate at which current property prices are soaring, it is not
possible for everyone to afford a home on their income or on mere
savings. This is the reason many mortgages and home loans exist. This is
also the reason why there are many mortgage brokers who help in getting
the borrowers and the lenders together. They also help out with
arranging and submitting the paperwork to the lenders on behalf of the
borrowers. They charge a fee or commission for their services. The
lenders charge interest for the loans they lend. These interests are
known as interest rates or mortgage rates.

What is a mortgage?


A mortgage is basically a lien against property. It is a loan obtained
by a borrower by pledging his home with the lender, usually the bank.
This is in the eventuality that if the borrower stops making payments,
the lender can foreclose. In cases where the borrower borrows from the
bank, for example, the bank has a claim on his property in case where he
doesn’t pay up. The bank can then evict the tenants in the property and
sell the house and appropriate the sale proceeds towards the repayment
of the loan. Los Angeles mortgage rates have a big effect on mortgages
that are adjustable rate mortgages. The other type of mortgages that
home buyers can opt for are the fixed rate mortgage and foreign currency
mortgage.

What is a mortgage rate?


In a mortgage, a lender lends money to the borrower and charges him
interest. The rate at which the lender charges the interest is known as
the mortgage rate.This rate could be fixed or variable. Depending on the
interest rates, the mortgage rates in Los Angeles too fluctuate and
have an impact on the homebuyers’ market. There are several factors that
affect this rate and one of the most important among them is the
borrowers’ credit. Another important factor affecting the mortgage rates
in Los Angeles is the size of the loan the borrower intends to take
out. This rate in turn decides the amount the borrower eventually pays
out in equal installments and the total interest component of the entire
mortgage.

Basic concepts of a mortgage


In Los Angeles, or in fact anywhere, in addition to Los Angeles
mortgage rates, there are other concepts too that one must understand
when it comes to mortgages. These are property, which usually means the
property being financed; borrower, meaning he home buyer taking out the
mortgage and the lender, usually the bank. There are also some others,
such as redemption, foreclosure, insurance, principal and so on. Yet
other important terms one always gets to hear when talking about
mortgages, are closing costs, escrow, loan to value ratio, lock-in,
title ratio and so on. Apart from keeping oneself abreast of these
terms, it is always advisable to do your homework and compare more than
one mortgages available in the market so as to ensure that you end up
with the best deal.Knowledge is correctly said to be power and helps you
carry out a smooth transaction.

Beneficial Debt Management Advice For Debtors Having Huge Debts

It is really an irritating and stressing situation to live in debts.
If you are also in loan like situation and want to get out of it then
very first you should agree that you have debts. Proper debt management
knowledge and skills can help to get out of debt early. Financial
education is quite essential in present days for everyone to manage
debts and personal expenses in adverse financial situation. In present
economy demanding world, only sound financial knowledge can help to live
a financially free life.

Get Expert Advice and Help:


If you have heavy debts that you are unable to manage due to poor
economic situation, low income sources and heavy expenses then it is
better idea to seek professional’s advice. Several alternative repayment
options are available in present economic market which can help to
manage finances based upon your repayment ability. There are
professionals loan managers who have helped several individuals to get
out of debt. Selection of right repayment option is quite essential for
the success of the plan. Debt consolidation loans, debt management plan,
debt settlement etc. are informal alternative repayment options which
can help to avoid bankruptcy or other insolvencies.

If you think
you are in serious finance like situation then very first you should
try to manage your money using an efficient debt management plan with
the help of an expert finance consultant. It will help to get out of
debt as early as possible. Experienced and professional loan experts
having detail knowledge about debt repayment options can help to avoid
the trap of finances. Right professional advice will also help to manage
financial situation as well to avoid legal problems.


Fully trained and qualified finance consultants are available in market
from which you can get advice to manage present economic situation and
to make a fresh start. In some extreme financial situations where
informal repayment options are not fit for your financial situation then
you may also require moving towards insolvency or bankruptcy. However,
bankruptcy provides you a chance to make a fresh start.

If you
have huge finances then you should take essential steps today. If you
avoid your loans today then further it will become quite difficult to
get out of debt. Expert finance advice can help to find proper way to
manage broken financial situation but any information can work for you
if you seek it at the right time. Budget expenses are quite essential to
improve broken financial situation. Try to improve your income sources
and avoid taking any new credit for proper debt management.

US Financial Services

the debt burden by introducing consumer loans.

These selective companies provide the debtors’ huge
or small amounts of loans so that they can be free from stress of other
debts.

Majority of the population is facing the problem because
of loans due to which they are unable to buy valuable assets like cars,
houses and much more for future securities, as people cannot repay the
loans they are being questioned by many of the lenders as lenders wants
their repayment on time and if delays are from consumer side they charge
heavy markup on the principle amount which further increases the loan
amount.

To cope up with such issue as mentioned about and to
avoid paying heavy markup rates on principle amount these financial
consulting firms help the people to manage their debt in appropriate way
and for the services they provide they charge fee for it ,fees amount
differs in every firm its customer choice to choose the best firm who
provides their valuable services in less cost ,customer focuses on few
points while making choice for such firms means they chose the firm
according to their loans size and required facilities as the best choice
of it can only release them from such tension and debt burden.

In the present economy financial services
can be provided to the US population which will definitely help them to
cope up with their debt burdens, but this may also result in frudental
activities by customers with the lending firms as if any customer wont
be able to repay the amount of installment on time she/he will be charge
with extra fee which is consider as late payment charges and along with
this additional markup will be charged which will increase the
principle amount of the loan and in such situation if consumer will not
pay the loan amount back to the financial firms, the firms will face the
loss of money and they will have to record these type of loan in their
books as bad debts, but these firms by keeping in mind such incidents
are still providing the financial services to people
and supporting them in monetary terms ,now a days many banks and
financials institutions are providing consumer, business, auto loan ,
house loan and many others from which even common people plus the
business communities are taking advantages from such financial
institutions.

US population can avail consumer loan service from
these financial firms but while making any choice the one must work on
safety measurement means one should investigate about any firm he/she
chooses before starting any business transaction with them to avoid any
frudental issue late as some time these type of companies which are not
registered or are working on small scale can be fake which will later
create problem for one who make any agreement with them.

“So make a right choice on right time and make your life worth living without any stress and burden”