What Does REO Stand For? - A Chance to Make Money!

When talking about real estate investing, we hear all kinds of terms. One in particular is REO. What does REO stand for? It stands for Real Estate Owned. Basically an REO is real estate owned by the bank.

What does REO stand for? A chance to make some money. An REO is a property that was foreclosed on. For whatever reason, there were no bidders at the foreclosure auction so the bank now owns the property. Banks are not in the real estate business so they want to get rid of the property as soon as possible. They will even lose money on the deal now because they know the longer they keep it, the more money they are losing.

REOs can be good property investments but you need to do some research just like when looking at foreclosures. What does REO stand for? A chance to get a good deal on some investment property. One good thing about working with REOs is that the deal might go a little smoother. You have a better opportunity to inspect an REO property. You are also working directly with the bank, which is a very motivated seller and will entertain all reasonable offers.

Before you get too excited about a property, find out why there were no successful bidders at the auction. The most common reasons why no one bid on the property are that there are IRS liens on the property, the property was in bad condition or there is not much equity. Once a property becomes an REO property it becomes a better investment. The bank will be willing to accept a lower offer than would be accepted at the auction. Many REOs can sell for 30% below market value.

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Money Tips - Saving Money

There are several money tips online and on books, but only few people actually practice those tips when it comes to saving money. One of the things that make money-saving seemingly difficult is that most people tend to set unrealistic goals and get discouraged along the way when it seems they are not attaining their set goals.

One of the fastest ways to save money successfully is to kill your debt first! If you doubt it, just calculate the amount spent monthly on your debts, this will help you understand that debt elimination is the quickest way to free up money. As soon as you free money from repayment of debt, the money can swiftly and easily be converted to savings.

Other Money Tips

Trimming down your expenses is one of the best ways to save money; there are several ways you can trim your expenses;

It is sensible to consider a less costly apartment, you may even need to move out from an existing expensive apartment if you already have one - this is especially necessary if you have some urgent money-saving set goals to attain within a specified period of time
Debt consolidation; this will help you to pay less interest
Mortgage refinancing
Instead of keeping up to 2 cars, it could be sensible to give up one - and save the money spent monthly on gas for the second car. You can get another car when you have substantially attained your savings goal, or if your income has increased and you can meet your monthly money saving goals and still keep a second car.
Go for better bargains on insurance. Don't just settle for the first or second insurance service provider you come across; do a little research, ask everyone you know in order to ensure that you obtain the best price possible. Imagine your friend paying about $5000 yearly on the same object of insurance that you are paying up to $7000 yearly! This means you are losing a huge sum of $2000 to an insurance company yearly.
It can also help to resort to a home brewed coffee rather than a costly coffee house latte. Do you know that this single decision can save you about $4 daily - which will amount up to $500 or more yearly?
Choose the discount racks for your shopping at clothing stores. You can save over 45% percent by opting for items on clearance which are marked down substantially.
Consider saving money on phone call by using free services on the internet such as Skype.
Also, eat out less; consider bulk purchase of grocery and commence the use of coupons - these will help you save substantially.
Avoid the use of credit card - learn to pay via money orders or with cash for all your purchases. It's also advisable to avoid using checks. The temptation and ease of overspending when pulling from a credit card or bank is more when compared with using cash at hand. But if you can exercise self-control with the use of credit card, go ahead and use it.

The money tips outlined above can help you save more than you can ever imagine; they are not difficult money saving tips, all you need is determination and consistency to attain them.

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How Long Does the Eviction Process Take After Foreclosure?

The process of taking a home through foreclosure, from beginning to end, is extremely different in every state. Depending on where a property is located, different types of foreclosure will be pursued, different terms will be used to describe a foreclosure auction, homeowners may receive many notices of the process or very few, and the time frames will range from a few months to over a year. One of the few relative constants in all of this, though, is the eviction process that is used after foreclosure to remove the homeowners from their property.

The eviction process usually lasts about 2-4 weeks, in most cases. It is a straight-forward legal mechanism where the new owner (usually the foreclosing bank) will prove that they now own the property and wish to take possession of it and remove any people and personal items still remaining. The bank will file a motion with the court asking that the sheriff be ordered to evict the former homeowners and their belongings. The bank will usually have no problem proving to the court that they now own the house, as the agents of the court ordered the granting of the foreclosure judgment, scheduled the sheriff sale, and signed off that the foreclosure auction was valid.

Once the order goes to the county sheriff, it can take just a few weeks for the sheriff to give the homeowners notice of the pending eviction and then they will show up a few days later to remove the people and property and change the locks. At this point, the homeowners should have moved out already, because it will be almost impossible to get more time to stay in the house, especially after missing numerous mortgage payments, working through various methods to stop foreclosure, and then enduring a lengthy foreclosure process. So the actual eviction process is relatively straight-forward with few possible outcomes, compared to all that goes on before it.

However, when this process starts at all varies widely by state. One of the first steps that homeowners should take in trying to save their homes is to look up their state foreclosure laws to find out if they have a redemption period either before or after the sheriff sale. Some states give them extra time to remain in the property after the auction, when the bank can not start the eviction process. This is a redemption period and it can not be denied to the homeowners by the bank or the court system, as it is guaranteed under state law. But the state law will also provide the time frame in which the homeowners will eventually find themselves put into the foreclosure process, and they should have a final plan for how to avoid this and get out of the house before being kicked out.

Some states grant foreclosure victims a 10 day redemption period, others have 6 months, and some even have a year after the sheriff sale that the homeowners can use to remain in the house and attempt to pay off the redemption amount. During all that time, the bank can not try to evict them by force, although they may offer a cash for keys deal or otherwise attempt to persuade the homeowners to leave the house prematurely. In this case, the bank may be able to take over the house early, to protect it from vandalism or damage. But, they can only start the eviction process once the redemption period has ended, regardless of whether or not the homeowners have some workable solution that would stop foreclosure in the end.

So the best way for homeowners to find out how much time they have before being evicted is to look up their state foreclosure laws to find out how much time the entire foreclosure process will take. Otherwise, there is a very real possibility that they might move out too soon or find out about the eviction too late. If they move out too soon, they will lose valuable time to save money for an emergency fund and repair your credit. If they do not hear about the eviction until a few days before the sheriff shows up to remove them, then they may not have anywhere to go. Either possibility should be avoided, if at all possible, and homeowners can protect against either with the right information.

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Loan Modifications For Investment Properties

Do you have rental or investment properties that are causing a financial difficulty for you? Are the payments too high due to adjustable rates or do you owe more than the property is currently worth? An investment property loan modification is an option that may provide the help you need. Here is some helpful information that you may be able to use when speaking with your lender.

The fact is that as the market continues to deteriorate, lenders have become more and more willing to modify loans on all types of properties. While some of the government subsidized programs are targeted at primary residences, many other programs are available to investors. After all, when renters are evicted by the bank and properties are left vacant, it hurts the already decimated housing market and costs the banks millions of dollars. Whenever it makes sense for the lender, they will modify the terms of an investment property to keep the loan performing.

The trick to getting a loan modification on an investment property is proving to the lender that it will cost them less money over the long run to modify the loan instead of foreclosing. How do you do this simply and clearly? The first step is determining the approximately market value of the property-if the loan balance is higher than what it could reasonably sell for, you have some leverage. Secondly, if the rents do not cover the current loan expenses and the property has a negative cash flow, use a form called a Rental Schedule to prove this to the lender. You can also show how a new modified payment would cure this problem.

Keep in mind that your lender is a debt collector and anything you say or give them can and will be used either for or against you. Many borrowers contact their bank to apply for an investment property loan modification before they take the time to learn and prepare. It is critical to prepare your budget, financial statement and rental schedule before you speak with your lender. This way you have time to fine tune it, make any changes and be sure that it will meet the approval guidelines. Do not contact your lender until you know what you are talking about. Investing just a couple of hours of your time now could mean the difference between getting help or being denied.

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Life Insurance For People Over 80

If you are 80 years old up to age 85, there are a few companies that will offer you life insurance, so long as you are in good health. Due to the high cost of premiums, most people that fit into this age bracket typically buy a small policy to cover burial and funeral expenses. This is usually between $5,000.00 and $15,000.00.

The average cost of a funeral in the United States is approaching $7,000.00.

Seniors today are living longer and longer, so you should expect that the price of burial and final expenses will continue to rise over the next decade. Everything always seems to go up in price, year after year. Therefore, when choosing the amount of coverage to purchase, you should take into consideration that although a reasonable funeral costs $7,000.00 today, five years from now it may be $8,000.00 or more.

Be Cautious.

Do not cancel any policy that you already have, nor should you allow any insurance agent to talk you into replacing any policy that you have with a new one. Insurance agents get paid on a commission and there are some that are looking out for their commission check more than they are looking out for you. So be cautious and protect the investments and policies that you already have in force.

For example, if you have a $5,000.00 policy already, do not cancel that policy to get a $7,000.00 policy. Only buy a $2,000.00 policy to add to the $5,000.000 policy that you have. I would advise any client to only add to and not replace any policy that they have been paying on for years.

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Child Support Payment Sample Letter

Any child support problems that may come about can be taken care of in court by submitting a letter of consideration to the judge. The following are some of the child support payment sample letters that any parent can make. A mother write a letter asking help of what she will do because she cannot afford anymore to pay child support on time. Another one is that her ex-spouse is being late with the child support, the check bounces or sometimes she is only given half of the amount agreed upon, she is asking if she can withhold the visitation.

Regarding the first child support payment sample letter of a mother that cannot pay the child support on time she also explained her reasons that she also has three children that are being supported and one in college, she cannot think of where to find money to support the child, she is disabled and no income at all but the court ordered the maximum payments and did not consider her other children. She is not intending to neglect her child support but the problems occur. In this manner the court advises her to settle changed circumstances to be considered in modifying her child support. She must notify the court of her problems in supporting her family and if she submits a changed circumstance request that is the only time wherein the court can decide about her letter.

The second payment sample letter is from a custodial parent who is having a problem receiving child support from her ex spouse; it is always late and lacking. She is asking if she can withhold visitation of her child. The court says that she cannot withhold visitation because child support and visitation are two separate legal issues. The courts do not like it when one party takes the law in his or her own hands to alleviate problems in child support. The court can charge the offending party, the one withholding visitation with penalties and if your ex-spouse decides to sue for custody, the action of withholding can be held against him or her. He or she can deal directly with each other to solve the problem, he or she must find out the problem that becomes the root of the delayed support. If after dealing with each other and no solutions are found then he or she can go to court and ask the court for support obligations. The court can order wage garnishment wherein the employer will be the one to deduct the child support from the paycheck.

The given child support payment sample letters can give some solution to those concerned who also have the same problem and are ashamed to open up. Wage garnishment is not so much used as a solution unless both parties decide to do so. The most important thing here is the withholding of visitation is not allowed. To avoid problems that will lead to a court hearing and you may be the one to pay for attorney's fee and other expenses with the court case. Some judges include COLA in their orders when setting child support. Because of this there is no need for modification requests based solely on cost of living increases.

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Day Trading For a Living?

Is it possible to day trade for a living? Considering the fact that many people have earned well into the millions of dollars from day trading, it would be safe to say that it is definitely possible to earn huge income from day trading. But, it is also important to note that day trading is for the serious investor.

This is not an easy process and it takes a great deal of work to succeed at this. This work entails performing a great deal of research across the entire stock market spectrum. This is a critical point because day trading decisions should rarely be based on looking at a small fraction of the market.

Stock trading involves picking a stock that is currently at a low price per share and then selling it when it increases in value. The time frame for this strategy is essentially completely open. That is, you can purchase the stock and hold it for a few years before selling it. However, with day trading, you would perform your sales in a much more rapid manner. In some instances, you would buy and sell the stock in the same day.

If you invest a great deal of money and earn a small profit on it, the profit will be quantified by the high amount of the initial investment. For example, investing $10,000 in a stock in the morning and selling at the close of the day for $10,300 is a nice profit for one day's work: $300. Of course, the possibility to earn more is there but so is the potential to lose a great deal of money. Again, day trading is a complex and difficult process. That is why a clear understanding of what it is one is investing in is critical.

This is why it is important to have access to an excellent stock picking software or platform that can help deliver expansive statistics on the market. From this information, one can make a much more well informed decision. This, in turn, will add to the potential to succeed with your trades. Clearly, if you want to engage in day trading for a living you will need to make profits on the bulk of your trades. You simply would not be able to do this for a living if you were losing money on the bulk of your trades. Once again, this is why it is necessary to have a solid software program that can help you make better informed and, hopefully, more successful trades.

A Stock Assault 2.0 would be one of the better programs to work with. Such a program will launch an expansive technical analysis of the market and present that information. No, it does not make prediction or pretend to be a virtual stock market guru. Instead, it is a logical device designed to help promote successful day trading decisions. While this may seem like a simple goal on the surface, it is the primary means in which many day traders are able to be successful in their venture.

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Expat Life in Sri Lanka, Colombo

I recently visited the wonderful island of Sri Lanka, and found a country full of surprises.

Sri Lanka is situated just south of India, in the Indian Ocean. Once known as the Dominium of Ceylon and often referred to as the tea country, tea plantations abundantly thrive across the island, with spice gardens, banana and coconut palms growing randomly to create a jungle of natural resources.

People, animals and transport seem to co-exist side by side with no animosity towards each other. Dogs wonder aimlessly across or bask in the sun at the side of roads, cows and goats roam around everywhere, even on the beaches (which I found rather amusing) and people are everywhere, whether walking, cycling, using a tuc-tuc, motorbike with 5 astride, in a taxi, bus, car or truck, each takes up a space of the not too wide road. But co-exist they do, there is no anger at being stuck behind a truck, merely a short hooting of the horn to say I am here and would like to pass, politeness abounds and the expression and sounds are all of friendliness, within a country that sorely needs help at redeveloping itself since the tsunami. People are poor and yet happiness is everywhere.... Not just for the child on the hip or the person at their side, but for expats and tourists as well.

Tourists fluctuate towards the resorts and some chance the areas slightly outside of these areas, to experience a quieter less harassed holiday. Small pockets of expats can be found, dotted all over the country. When you bump into these people and chat about life on the island, there is not much to complain about. Yes, sometimes the water gets turned off or the electricity, yes the internet is not as fast as they would like it to be. Isn't that how most people feel in developed countries anyway: The faster it gets the faster we want it. In this little piece of paradise, expats are not too concerned that it takes a little longer to do things here, the people are prepared to wait, not too hasty to move forward too quickly. There was a lot of talk and concern about the elections and safety within the country and there are still road blockades and police / army personnel with guns wandering around keeping peace if necessary. However, with 70% of the population being Buddhists, the lifestyle is peaceful and life simplistic.

From an expat perspective, I could not fault the lifestyle. As said above, yes there are definite things missing, things are slower, it takes a good 4 - 6 hours to get from Colombo to Galle and similarly to anywhere about 200km's apart. I cannot say that the roads are particularly in good condition, but in the 10 days that I visited, I did not see one accident. Hardships could include the lack of being able to get from one part of the island to another quickly, the lack of fast internet connection, perhaps the human waste / refuse, which allows for the influx of flies, the dirt which is left to lie around and lastly the lack of funds to rebuild the country to what it was before the Tsunami.

Having said that, I have to look at all the good things that you find there, the beauty of the natural resources, how the nationals and expats are trying to rebuild the country, the beaches, game parks and mountains. This is truly a beautiful part of the world.

Expat Cost of living summary

The currency in Sri Lanka is the Sri Lankan Rupee LKR

The Exchange rate as at 15 January 2010 was $1 = 114.217 Rupees

I am going to break the Cost of living down according to some of the basket items:

Alcohol and Tobacco: Alcohol at Bar, Beer, Cigarettes, Locally Produced Spirit, Whiskey, Wine

Cigarettes (20s) - $3.14 to $9

Domestic Beer(500ml) - $2.50

Imported Beer (330ml) - $5.80

Wine at a bar - $6 a glass

Wine at a shop - $15 (750ml bottle)

Hotels tend to increase the prices of alcohol as it is the one way that they can make a profit. There are many small hotels and restaurants which create a competitive edge to where you can stay.

Clothing: Business Suits, Casual Clothing, Children's Clothing and footwear, Coats and hats, Evening Wear, Shoe Repairs, Underwear

Casual Long Sleeved Shirt (Men) - $12

Casual Long Sleeved Trousers (Men) - $20

Shorts (Men) - $11

T-Shirt (Men) - $6

Casual Blouse (Women) - $7

Casual Skirt (Women) - $12

Children's Jeans (Boys) - $5

Children's Jeans (Girls) - $3.50

Children's Shirt(Boys) - $5

Children's Shirt(Girls) - $4

Clothes are extremely cheap, in Colombo a person can get most of the name branded clothing at fairly reasonable prices in Factory shops.

Communication: Home Telephone Rental and Call Charges, Internet Connection and service provider fees, Mobile / Cellular Phone Contract and Calls

Monthly phone rental - $4.36

Phone call rate - $0.05 for a local call

Internet line connection fee - $104 (buy all equipment with installation)

Internet service provider fee - $17 (1 geg free thereafter)

Monthly mobile contract fee - $2.18 (for the year)

Mobile / cellular call rate - 90% of phones are prepaid,

Mobile Phone 100 Minutes Call - $38

- $0.012 - $0.05 sms peak times

Due to so many of the nationals working overseas to send money home, the communication costs are extremely low and there are often special deals or no cost is involved in the actual call.

Education: Creche / Pre-School Fees, High School / College Fees, Primary School Fees, Tertiary Study Fees

Annual Creche fee - $4.36 per month

Annual Primary school fee - $260 - $436 per month

Annual High School fee - $260 - $436 per month

Annual 1st Year Tertiary / University fee - $260 to $436 per month (dependent on which

private school they go to)

Private schooling is the most expensive on the island for expat children to attend, however the rates in comparison to other countries are reasonable. Expats that I came across spoke highly of the education system in the country and were happy with the private education that their children were receiving.

Furniture and Appliances: DVD Player, Fridge Freezer, Iron, Kettle, Toaster, microwave, Light Bulbs, Television, Vacuum Cleaner, Washing Machine

DVD Player - $87

Fridge / Freezer - $489 (LG / Whirlpool - 4 year guarantee)

Iron - $12 cheap to $35 top of the range

Kettle - $20 cheap to $37 top of the range

Microwave - $191

TV 21 inch - $244 (2 year guarantee)

Washing Machine LG - $570

Discounts can be negotiated with stores on all items

Groceries bought in a grocery store: Baby Consumables, Baked Goods, Baking, Canned Foods, Cheese, Cleaning Products, Dairy, Fresh Fruits, Fresh Vegetables, Fruit Juices, Frozen, Meat, Oil & Vinegars, Pet Food, Pre-Prepared Meals, Sauces, Seafood, Snacks, Soft Drinks, Spices & Herbs

Powdered baby formula (400g) - $7

Plain biscuits (100g) - $0.20

Loaf white bread (200g) - $0.70

Cake Flour (1kg) - $2.80

Baked Beans (415g) - $1.92

Tuna (185g) - $2.75

Cheese: Cheddar (250g) - $6.63

Crisps: Pringles (139g) - $2.50

Autowash clothing powder (750g) - $1.57

Dishwash liquid (500g) - $0.87

Clothing Softener (2l) - $5.40

Breakfast Cereal (250g) - $2.45

Butter (227g) - $2.18

Milk (1l) - $1.40

Eggs (12) - $1.80

Orange Juice (1l) - $2.80

Frozen Mixed Vegetables (1kg) - $6.20

Cooking oil (1l) - $3.22

Olive oil (500ml) - $8.28

Can of cola (355ml) - $1.00

Local Fizzy Soft Drink (1l) - $1.30

Local Natural Mineral Water (5l) - $1.08

Tea Bags (200g) - $1.85

Instant Coffee (100g) - $6.75

Local Ground Coffee (200g) - $3.66

Salt (400g) - $0.26

Pepper (400g) - $0.35

Prices were obtained from local grocery stores, there are no big department stores to shop in.

Healthcare: General Practitioner Consultation rates, Hospital Private Ward Daily, Rate, Non-Prescription Medicine, Private Medical Insurance / Medical Aid Contributions

GP Private rate visit with meds - $3.50

Hospital Private ward rates - $28 per day

Dentistry - Tooth extraction - $4.35

Most expats use Bupa or the Sri Lankan Equivalent

Household: House / Flat Mortgage, House / Flat Rental, Household Electricity Consumption, Household Gas / Fuel Consumption, Household Water Consumption, Local Property Rates / Taxes / Levies

Rent 2 bed Apartment City Centre - $700

Rent 2 bed Apartment outside of City Centre - $600

Electricity, Gas, Water, Garbage per - $80 to $90 per month for an average

household, this is expensive when taking household

air conditioning into account

Gas / Fuel - 12 ½ kg bottle - $14

Local property Rates - 8 to 10% of value of property

Expats cannot buy a property directly, this has to be done via a Lawyer who owns the property. Mortgage for locals is 4/5%. This is where most expats find the costs creep in, running the air conditioners is extremely expensive as well as the cost of water.

Miscellaneous: Domestic Help, Dry Cleaning, Linen, Office Supplies, Newspapers and Magazines, Postage Stamps

Domestic Rates - full time per person - $80 average

1 Black inkjet printer cartridge - $14

1 Color inkjet printer cartridge - $21

500 sheets printer paper - $5.23

Local Daily Newspaper - $0.17

International Daily Newspaper - $0.45

International Magazine - $20

International Airmail Stamps - $0.22

Domestic Stamps - $0.12

Domestic help is cheap and most employees either live on the property or close by. Office supplies are reasonable, with CD's and DVD's freely available on the street where most locals buy them.

Personal Care: Cosmetics, Haircare, Moisturiser / Sun Block, Nappies, Pain Relief Tablets, Toilet Paper, Toothpaste, Soap / Shampoo / Conditioner

Body lotion (400ml) Vaseline Intensive car - $4.53

Toilet paper 1 ply per roll - $0.50

Toothpaste (200g) - $1.92

Shampoo (200ml) - $2.40

Some of the items that can be purchased can be expensive, like creams, sunblocks and cosmetic creams. Name brand products are the most expensive.

Recreation and Culture: Books, Camera Film, Cinema Ticket, DVD and CD's, Sports goods, Theatre Ticket

Books paper back - $10

Cinema ticket - $0.50

DVD / CD Imported - $2

Cricket ticket - $0.50 to $8

Theatre Ticket - only in Colombo - $30

Hard cover books are expensive in the country, but paper back books are of a similar cost to the US and UK. Cinema tickets are cheap due to the availability of cheap DVD replicas which can be bought on street corners. International cricket tickets are also kept cheap for the local population.

Restaurants / Meals out / Hotels: Business Dinner, Dinner at Restaurant (non fast food), Hotel Rates, Take Away Drinks & Snacks (fast Food)

Business Dinner excl Alcohol - $22 per person

Dinner / lunch at local restaurant - $8 per person

McDonalds Big Mac - $4.10

Hotel Rates 3* - $8 to $50 pppn

Hotel Rates 4* - $80 to $120 pppn

Hotel Rates 5* - $140 pppn upwards

Take away - Can of cola x 1 - $0.70

Medium pizza - $3.50

Hamburger - $2.00

Coffee - pot x 3 cups - $1.40

As in most countries how much you pay for a meal is dependent on where you go, the local restaurants have great local meals, as well as international flavours, we found a fabulous vegetarian restaurant in Galle, well worth a visit and all prices were fairly cheap. Some restaurants do take advantage of the tourist population and serve sub standard meals. However, most restaurants were good with their portions and meal plans.

Transport: Hire Purchase / Lease of Vehicle, Petrol / Diesel, Public Transport, Service Maintenance, Tyres, Vehicle Insurance, Vehicle Purchase

Hire / Lease car - Sedan Toyota Corolla - $37.14 per day for 1 week

Hire / Lease car - Toyota RAV4 - $46.71 per day for 1 week

Petrol unleaded per litre - $1.23

Diesel per litre - $0.64

Bus Ticket (one way) - $1.00

Taxi Ride - per km - $0.50

Tuc Tuc - 10 km ride - $6.00

Train Ticket 2nd class - $1.57

If you are visiting I would suggest you use the local taxis and tuc-tucs, driving can be a head-ache and unpleasant experience if you are not used to the local norms. However, speeds do not go over 80km on the bigger roads and overall a safe place to drive.

The above detail are some of the items form the basis of the cost of living indexes for each basket group in the Xpatulator calculators, these costs are then used with their indexes and exchange rates to calculate the cost of living in different locations.

For more information on Sri Lanka read more at www.xpatulator.com/outside.cfm.

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Financial Help For Single Mothers

Financial aid for single mothers is available either through federal welfare services or through private organizations.

Who is qualified?

Not all single mothers can take advantage of special financial help packages. Only those whose earnings fall below a certain level are considered low-income individuals and qualify for welfare benefits. To find out if you qualify for and may avail yourself of federal welfare services, you must complete the application form available at your local welfare office.

Each program has its own income limits. Whether or not your income falls within the limit depends on the type of income you have, your family's expenses, and any other special circumstances your family may have. Each program also has resource limits. Things that can be converted to cash (bank accounts, stocks, and other properties) are considered to be resources. Only certain non-U.S. citizens may receive welfare benefits. Check with your local office for details.

What happens if you are not qualified?

If you do not qualify for welfare benefits, or if your needs are not covered by any specific welfare program, you may take advantage of grants offered by the U.S. government to single mothers. In exchange for the grant, you must perform some service or task required by the grant terms. There are 900 grant programs offered by 26 federal grant-making agencies. Some grant categories are agriculture, art, and education. You may visit http://www.grants.gov and http://www.neh.gov for details on grant application.

Other sources

Many schools offer scholarships specifically to single mothers. In order to find out about these, you may visit the financial aid office of the school you are currently attending or wish to attend.

There are also some private organizations that give grants and financial assistance to single mothers. Singlemom.com has a "financial gifting program." It awards cash grants to deserving single mothers every month. Many other similar organizations have grant and financial aid information on the Internet.

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A Co-signer Can Aid Home Loan Approval!

Many requirements are usually not met by main applicants but can easily be fulfilled by a co-signer. What one alone can't get, can be achieved by the power of two combined. When you apply with a co-signer, his credit score, income, credit history, assets, etc. are also taken into account at the time of loan qualification and if either you or the co-signer fulfills a requirement, it is considered to be covered by the two of you.

Co-Signer: Concept

When you apply for a loan with a co-signer, he is responsible for the repayment of the loan as much as you. He is obliged by the same loan terms and is legally responsible just like you. If you fail to meet the monthly payments, the co-signer has to pay the installment since otherwise, the lack of payment will also be recorded into his credit history.

Being a co-signer implies risks. If you are asked to act as one, bear in mind that you will be responsible for the lack of payment of the main applicant and will have to substitute him or else the delinquency will be reported and added to your credit report. Moreover, the lender can take legal actions against you in order to recover his money. The lender doesn't have to follow a certain order, he can choose between claiming you the money or the main applicant.

Requirements Not Met

There are income requirements for home loans that you may not be able to fulfill. When applying with a co-signer, the incomes are combined and if the addition of both meets the requirements you can get approved. In many cases, when it comes to couples the combined income can raise a bit the required minimum but it never reaches more than 20% more.

Credit requirements are also important when it comes to home loan approval. In this case instead of adding, the co-signer credit situation can replace yours and fulfill the requirements. If your credit score won't allow approval, the co-signer's score will be taken into account and if his reaches the minimum score required, the loan will be approved without hassles.

100% Financing

In many cases, in order to get approved for a home loan, a down payment is required. If you can't provide a down payment, you can opt for requesting 100% financing on your home loan. But approval for this kind of loans is complicated. In order to guarantee approval you may need to apply with the aid of a co-signer. That way you'll be able to obtain full financing for the whole property's value without having to put money down.

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ASC Mortgage Loan Modification

Falling 30 days behind in payments on your ASC mortgage opens up the possibility of receiving 'loan modification', to lower monthly payments and tack the late payments to the end of the mortgage period. Three major things requires for application include one months of income receipts and bills, the ASC account number and the default letter with a contact number. Qualifying for such loan modifications depends on the debt-to-income ratio. A high ratio generally signifies that ASC won't consider renegotiating the terms of the loan, while a low ratio generally makes modification likelier.

Crucial things needed for ASC mortgage modification loan application include a compilation of all monthly expenses that include credit card payments to TV, phone and food expenses. Determination of monthly income from every source and applying precisely when income is leveled so as to being in a good bargaining position. A determination of the hardships that led to the present situation is very important as well. Sincere causes like loss of a job or the death of an income-earner, mental illness and fire or theft increase chances to get loan modifications from lenders.

Generally when defaulted the ASC sends a default announcement letter. It has a number that the defaulter is suggested to call. The next step after gathering monthly expenses, income and cause of defaulting is to call that number and informing the operator about applying for loan modification. Queries about monthly income, expenses and the loan number are to be answered clearly. If the loan is not possible, the operator generally informs the defaulter then and there. Otherwise, the lender will let know when to send the income documentation. It may take some time and several trials.

It is strongly advised that the caller be persistent and patient when calling, even after being turned down repeatedly. It may take many months of constant contact. Home-owners are shown to win out by persistent and pursuing the modification process repeatedly. The help of a lawyer or a non-profit agency might be sought to handle the lender contacts in later stages. One should continue to build up income throughout the process and increase the value of the house in innovative and inexpensive ways to have equity to show in ASC appraisals.

One may contact 'Hope Now' to help him sail through the process. It is a government-business cooperative effort which provides home owners free advice on such issues.

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High Risk Home Mortgage Lenders Online

Online high risk home mortgage lenders specialize in offering loans to people with adverse credit due to bankruptcy or other financial problems. By analyzing online quotes, you can find a reasonable mortgage loan even with poor credit. Loan approval is then just a matter of filling out your online application and reviewing some final paperwork.

High Risk Home Mortgage Lenders

High risk home mortgage lenders, also called sub prime lenders, provide a service for people with poor credit. Through slightly higher mortgage rates and fees, lenders are able to offer mortgage loans to high risk lenders. There are predatory lenders who charge extremely high rates and fees, but you can avoid them with comparison shopping.

Finding Lenders

The internet makes finding high risk home mortgage lenders easy. Through mortgage comparison websites, you can request quotes from several lenders by answering a few basic questions. You commit to no obligations when you requests quotes online.

These generic quotes will help you narrow down your list of possible mortgage lenders. Once you have picked a few possible mortgage lenders, you will need to request a detailed quote from them to make real comparisons.

Comparing Financing

Many factors besides your credit score are used to determine a mortgage rate. You will need to fill out an application with detailed information in order to receive a real mortgage quote. These applications can be filled out online for speedy processing.

Once you receive your mortgage quote, compare both rates and fees. Fees often hide the true cost of a loan. The easiest way to compare mortgage loan costs is to add up fees and the interest you will pay over the course of the loan.

Online Application

After you pick the best mortgage financing offer, you can quickly finish the application process online. After your application has been reviewed by your mortgage lender, you will receive final paperwork in the mail for your approval.

Think About The Future

With a high risk mortgage loan, consider refinancing after establishing good credit history for three years. Making regular payments, building cash reserves, and lowering your debt will allow you to qualify for lower interest rates in the future.

To view our list of recommended high risk mortgage lenders online. Visit this page:
Recommended High Risk Mortgage
Lenders Online.

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How To Calculate Loan Payments and Amortization on the Back of an Envelope With a Cheap Calculator

In a previous article we presented a simple formula to calculate the amount of a monthly home mortgage loan payment. The formula applies to any compound interest loan. The only special equipment you need is a calculator with a power function key. That's the key with the y superscript x (y ^ x). If you have kids in school you probably already have one.

Here is a review of monthly payment formula.

The variables are:

N = loan period in months. i.e. 20 years = 240 months.

R = interest rate in whole numbers. i.e. 8% written as 8.

P = principal amount of the loan. The amount borrowed.

Q = the Q factor. An intermediate calculation.

M = monthly payment amount

Here's the entire formula for the monthly payment amount of a compound interest loan:

M = (P * R * Q) / (1200 * (Q -1))

Easy enough, but first you have to calculate the value of Q. Here is the formula:

Q = (1 + R/1200) ^N. Pretty simple, but you do need the power function key. N can get large.

In our earlier example we calculated a monthly payment of $418.22 on a $50,000 second mortgage at 8% for 20 years. You have paid the 2nd mortgage loan for 5 years (60 months). The pay off amount is $43,763 (rounded). This is how to calculate the pay off amount on any compound interest loan after N number of payments.

This is an easy three step process with a subtraction at the end. First calculate the growth value of the loan amount (P). P increases by a factor of (1 + R/1200) per month, so after N months the value of the principal amount of the loan would have inflated to P * (1 + R/1200) ^ N. For the current $50,000 second mortgage the calculation looks like this:

50000 * (1 +8/1200) ^60 = 74492.28 (step one)

The monthly payments have also inflated by a factor of (1 + R/1200) per month so in math talk we have a geometric series with n terms. The monthly payment part is a little more complicated and the formula looks like this:

1200 * M * ((1 + R/1200) ^N -1) / R

Plug in the actual values and it looks like this:

1200 * 418.22 * (1 + 8/1200) ^60 / 8 = 30729.49 (step two)

Now finish up by subtracting the inflated repayment value from the inflated loan amount value to get the pay off amount:

74492.28 - 30729.49 = 43762.79 (pay-off)

Once you know how to calculate the monthly payment and pay-off amount for any compound interest loan on the back of an envelope, you can noodle mortgage and car loan what-ifs from anywhere.

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Expatriate Australian Home Loans: How To Get Mortgage Approval While Living Overseas!

Did you know that expat Aussies can still qualify for an Australian home loan? The secret to approval is to apply with a bank that has credit policies that are favourable for non-resident borrowers.

So what are qualifying criteria for Aussie expats? As a general rule most banks and building societies do not accept loans from non-residents. This is because they either do not have systems to stay in contact with and manage loans for persons who are overseas, or because they are not comfortable with the additional risk associated with this type of mortgage. The banking sector has never been known for being easy to deal with!

The lenders that do accept non-resident home loans, tend to have additional credit criteria, and require additional documents before approving your loan.

You can borrow up to 90% of the value of your property in Australia. 95% LVR is available on a case by case basis.
If you are not an Australian Citizen or Permanent Resident then you can borrow up to 80% of the property value.
Purchasing a property or refinancing a current loan are both acceptable loan purposes.
Only Australian property / real estate can be used as security for the loan.
You must be able to afford the loan comfortably. This is known as having strong serviceability, ideally 1.1x cover.
The lender may only use 80% of your income in their assessment of your borrowing capacity to allow for exchange rate fluctuations
Your credit history in Australia must be clear of defaults & other adverse credit listings.
Foreign Investment Review Board (FIRB) approval is not required for Australian Citizens and PR holders, regardless of if you are a foreign resident for tax purposes or not.

Expatriate Australian Citizens often find that the most difficult part of applying for their loan is to provide the supporting documents required for approval. In many cases the lender may require JP certified ID or may ask you to take your ID to the nearest Australian consulate. This requirement varies between lenders.

If you are in a country that does not use English as their primary language then there can be additional challenges, in that the bank may not be able to understand your tax returns or payslips! Thankfully, some lenders have a specialist non-resident credit department that is staffed with multi-lingual credit managers.

Other banks have streamlined application processes for non-residents, and will only require a letter from your employer as evidence of your income if you are borrowing up to 80% of the property value.

If your income is received in a foreign currency then you may like to consider borrowing in that currency, to reduce the risk of exchange rate fluctuations. Some Australian lenders will allow foreign currency home loans in GBP, SGD, USD, HKD, JPY or CNY. The vast majority of people seeking foreign currency home loans are expat Australians living in England (UK), the United States of America (USA) or Singapore.

However, foreign currency loans carry some additional risk that are not present if you borrow in Australian Dollars. If the exchange rates move significantly then the bank may decide that your loan is no longer adequately secured by your real estate in Australia. They may request that you provide additional funds to reduce their risk, if you cannot provide more funds then you will be in default.

Choosing a home loan for a foreign resident is quite different to choosing a loan for someone residing in Australia. While professional package discounts are usually preferable for people living in Australia, for those overseas there is little benefit received from the additional loan features. In many cases expats prefer to choose basic loans which are easier to manage and have a competitive interest rate.

There is no point in choosing the best loan on the market if the lender you apply with does not accept applications from expats! The major banks and 2nd tier lenders are usually the best at dealing with Australians living overseas. On the other hand non-bank lenders and building societies rarely deal with these types of applications, and in many cases their lack of experience causes delays. Several even require the hard copy application form to be mailed to them for verification purposes!

The secret to getting approval quickly is to apply with a specialist non-resident mortgage broker. They can complete a quick assessment of your situation including which documents you can provide, which country you are in and which specific loan features you need. With this information they can then create a short list of lenders and loan products for you to choose from. Having someone in Australia that can deal with the banks for you can turn a complicated process into a few simple phone calls & emails.

When choosing a mortgage broker ensure that they have an Australian Credit Licence (ACL), are a member of the Mortgage & Finance Association of Australia (MFAA) and that they are a member of the Credit Ombudsman Service (COSL). Your broker should assist you from application, and approval through to settlement. If you have any questions about your loan after it has been advanced, or if you are considering fixing your interest rate, then you should ask your mortgage broker for advice.

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The Benefits of Using a Mortgage Broker

Buying a house can be complicated enough, but trying to sort out which mortgage is best, what the different rates are, etc, can be like trying to pick your way through a minefield. That's why using a mortgage broker is such a good idea, and one that more and more home buyers are starting to do.

Whereas previous generations of home buyers were content to simply arrange the mortgage through their banks, today's buyers are different. With the Internet offering new ways for people to look for deals on everything from home insurance to car loans, mortgage lenders are no longer the ones in control. However, using a mortgage broker is still more advisable than looking for offers by yourself.

Why a Mortgage Broker?

A mortgage broker is a certified professional and someone who has spent years training to become an expert in mortgages. Regulated by the Financial Services Authority (FSA), they have a strict set of guidelines that they must adhere to. This includes the information they give you, and the ethical decisions they make regarding any financial advice they provide to you.

Because of this, they are usually independent, which offers the potential home buyer the benefit of unbiased advice. Even if a broker belongs to a company, you should still be offered a greater choice when it comes to the type of mortgage you take out, as well as whom you take it out with. Compare this to banks and building societies, which usually try and arrange your mortgage solely with them, and the extra cost in using a broker are more than worth it.

What does a Mortgage Broker do?

Because they are such experts in their field, a mortgage broker can offer a host of services that you may not have received otherwise. As well as their advice, you can also expect a broker to:

Find the mortgage that's right for you
Access to thousands of different lenders nationwide
Provide a "mortgage calculator" that will help you decide how much you can borrow
Explaining the different mortgages - fixed rate or variable, self-certification or ad credit mortgage, etc

These are just some of the basic services that a broker can offer you. They can also help you arrange the best survey companies to use, close your paperwork, arrange legal fees and advice - pretty much anything connected with a mortgage, a broker can help you with. Additionally, a mortgage broker can also advise you on what additional costs you should include - for example, mortgage protection insurance and why you need it.

One of the biggest reasons many home buyers are put off using a mortgage broker is because of the extra cost involved - after all, they're already spending thousands on the property itself. However, the extra cost can often be included within the mortgage itself, and even if it's not, the few hundred pounds you spend on a broker's expertise could save you thousands in the long run.

If you're looking to buy a house soon, or even re-mortgage an existing property, speaking to a mortgage broker could save you more than you think, and is well worth the time and cost involved.

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Do You Need to Have Mortgage Insurance?

You will have to have mortgage insurance if you fail to come up with a down payment that is at least 20 percent of the sale price of the home you wish to buy. This insurance can be called by several different names such as private mortgage insurance or even simply PMI. It is called these in order for people to be able to tell that it is something different from FHA or even VA insurance. The latter couple are government sponsored programs whereas private mortgage insurance is not.

The amount of money that you have to pay towards mortgage insurance will depend mostly on the amount of money that you have borrowed and the size of the down payment that you have to put down on the house. In most cases you will be paying a half of a percent of the entire loan.

Mortgage insurance is like any other insurance there is a person who pays the premiums, that is you, and a beneficiary, which is the lender. This insurance is there for two reasons: one to make sure that the debt is covered if you default and two, to make sure that if something were to happen to you, like death for instance, they would still be able to get their money back. This insurance is the only way that the lender can be sure that no matter what they will get the money that they lent out back from you.

There are different ways in which you can pay your mortgage insurance. Generally the premiums are paid each month along with your mortgage payment but in some cases you will have the option of paying the whole of your premiums at one time, at closing. You will not get to choose the lender that you want to work with for your mortgage insurance in most cases, the lender will do that part for you. All you get to do is pay the payments.

Many people cannot afford to pay the entire 20 percent as a down payment and that is why so many homebuyers choose to get mortgage insurance instead. Once you have enough equity in your home you will not have to continue to pay the mortgage insurance but it can at time take years to get to this point. It is however important that you keep track of how much equity that you have so that you can make sure that these mortgage payments get cancelled when they can in order to save you some money each month.

There are lenders out there that will waive the mortgage insurance but in order for them to do this you will have to be paying more in interest. A higher interest rate could mean that you are paying more than you would if you had paid for the insurance. But on the other hand the interest can be deducted for your taxes and mortgage insurance cannot be.

Another way to avoid mortgage insurance is to get an 80-10-10 loan. In this type of deal you will have to get two loans rather than just the one. The first is for 80 percent of the sale price of the home while the second is for 10 percent. Then all you have to come up with is 10 percent to use as a down payment. This can save you money but it is slightly more complicated.

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Low Home Refinance Mortgage Rates - Versus Risks of Refinancing

Refinancing is a great means by which we can achieve low home refinance mortgage rates, build home equity and obtain substantial cash. Indeed there are significant benefits and advantages that the people who go through this financial process can enjoy, however it cannot be denied that there are also disadvantages involved.

It can be said that in order to enjoy cash, one should experience risks and while it might generally be true, in other cases such risks are simply too big to be worth it. Therefore, if you have thoughts about refinancing, you must study all the possible risks in order to arrive at a right decision that will make you financial situation stable.

One important step to do is carefully check the fine prints on the mortgage. The tiny printed clause might provide you with the reason that will have you decide whether you need to refinance or not. For example, you might not notice but some lending companies mention in small print clauses on penalties and fines associated with early debt payment and consequently outweigh the financial gains you will enjoy from refinancing.

You must not decide quickly on refinancing just because you are offered low home refinance mortgage rates. For example, the time you decide to spend to stay put in your home property is a factor that you need to consider as it will tell you if refinancing is worthwhile. Will you stay in your property long enough to able to at least break even and meet your new closing cost? If so, then there is reason for you to refinance. However, if you have plans of moving or selling your property before the expiration of the prescribed time period, then you definitely have no reason to go for refinancing.

You will also need to know if you will have to go through refinancing using a fixed or variable home refinance mortgage rates. The fixed type keeps the rate of interest at a single level. On the other hand, the variable refinance home mortgage rates go up and down during any give period of time. If you decide to stay put on your property for a long time, then in the long run you will certainly benefit for fixed type of refinance. However if you sell your home early even before rates can increase, a variable type of refinance home mortgage rates is the right option.

Refinancing your mortgage may or may not be for you, it depends on the present factors involved. In fact, it is not for everyone. As it is, even if you can actually enjoy low home refinance mortgage rates with smaller monthly payment, still there are existing risks to consider. It is best to discern if such risks is worth your move to refinance your debt.

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80-10-10 Mortgage Loan Programs - How Do They Work?

An 80/10/10 mortgage loan program is a type piggy back loan that borrowers will sometimes use to avoid paying private mortgage insurance. The fees on this type of mortgage insurance can be as high as 1% of the total value of the property each year, and borrowers are eager to avoid the expensive monthly payments if possible.

Most banks or lending institutions will insist that a borrower take out private mortgage insurance of they do not have a deposit equal to 20% of the home's appraised value. If you can deposit this much, you will not need the expensive insurance, and additionally, once your repayments have contributed 20% of the homes value then you will no longer need to continue paying for the insurance.

Many people will avoid this insurance obligation with an 80/ 10/ 10 mortgage loan program. In this type of mortgage program, the mortgage covers 80% of the appraised value, the borrower contributes 10% of the appraised value and the borrower also contributes an additional 10% of the appraised value through another loan taken out for that amount.

This second or piggy back loan will raise the down payment to an amount that will not necessitate the private mortgage insurance.

The second 10% on the house will not be protected by the homes value as collateral, and as a result you will pay a higher interest rate to secure this loan, as compensation for the bank's increased risk. The loan can be offered by the same bank that is issuing the mortgage or can be issued through a different lending institution.

This has been considered a money saver, especially as loan payments are tax deductible but mortgage insurance payments were not. New legislation enacted this year has clouded the water slightly, and homeowners may be eligible to deduct their mortgage insurance payment as well, depending on their income and geographical area.

Borrowers are well advised to take the time and do a long term payment calculation comparison of the two options. The piggy back loan option is not always the cheaper way to go.

Some people who are seeking financing on very large and expensive houses will also seek out an 80/ 10/ 10 mortgage loan to avoid entering the considered Jumbo loan realm, and to avoid the higher interest payments associated with this type of loan. A loan of more than $300 000 is at risk of additional interest premiums. Speak with a financial advisor about the options available in your state.

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Get Affordable Mortgage Disability Insurance Rates

It helps to be insured. It could be your car, your home, or even your motorcycle. If you insure these, it's only practical that you also insure your health, right? So you have health insurance and disability life insurance and other kinds of insurance.

Another insurance you should have is the mortgage disability insurance. This is because your home is a single large investment that you have done. Think of all the hours you toiled so you could afford your abode.

A number of people realize the importance to insure against loss of homes. But they ignore the fact that paying the mortgage might not be completed - because we are mortal. Let's say we get sick or die, paying the mortgage will not be that easy.

That is why there's mortgage disability insurance. Either of these two events cannot affect the mortgage payment of the house if you have this.

Mortgage disability insurance is specifically designed to provide you with the funds you need in order for you to meet the responsibilities you have for your mortgage loan. It ties you up to three years, just in case you become disabled during that span.

It is very affordable especially if you are a two-income family. Think of you and your spouse insured in paying the mortgage.

Let's say something happens to you or your spouse, you wouldn't have to worry about losing your home, just as long as you have mortgage disability insurance.

Another scenario is you being bedridden. It won't be that easy to pay the mortgage. At least with mortgage disability insurance, you get to pay the bill just in case you do become an invalid and cannot earn the income that you need in order to pay your home.

The reality is the foreclosures of most mortgages are the results of disabilities. The homeowner can no longer meet his end of the bargain on a financial level because of this.

Since the contract states that foreclosure will take place if any even happens, that is the ending of the whole mortgage drama. With the mortgage disability insurance, the homeowner wouldn't have to face that scenario.

If you are smart enough, you wouldn't agree to be a statistic. With your mortgage disability insurance plan approved, you are secure that your home will be paid in sickness or in health.

If you do get injured, you can recover easily because you don't have to worry about not paying the bills.

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Home Loans Have Become Difficult to Obtain

The home loan debacle has caused big problems for those interested in buying a home, but who don't have perfect credit. Even those with really good credit are finding it difficult to get a home loan simply because the banks are not interested in making any more bad loans, so they simply don't want to make any loans!

This is putting the real estate market in the trash and affecting the financial market in many ways. It's difficult to accept for many because just a few years ago practically anyone who applied for a home loan was approved, regardless of their credit. That's a big reason why the home loan debacle happened in the first place.

It simply does not make sense to give people with bad credit a home loan. They have bad credit for a reason, and if they didn't pay their credit cards and other responsibilities it doesn't make sense that they would pay their home loan. Regardless, banks approved home loans for practically everyone who wanted one.

Now, the real estate market has a problem because of the home loan fallout. Homes sit on the market with no buyers in sight. And, once a buyer does show interest it is difficult to actually get approved for a loan. So, home prices are plunging and there is no immediate recovery in sight.

The Future is Bleak

For the moment, home prices are dropping to 75% of their previous value. Some believe this is as low as they will go and prices will go back up. However, other analysts believe the country will enter a full out recession and prices of homes will drop as much as 40%.

That remains to be seen, but one thing is for certain and that is that the real estate market needs some help. As long as banks are being stingy with loans, then the real estate market has no way to recover. That's because without home loans people can't buy homes.

And, the banks aren't being very generous with loans right now so the real estate market has nowhere to go but down. People with really good credit are the only ones with any hope of buying their own home these days, and that makes sense from a home loan point of view.

That's because banks have less risk when they loan to those with good credit than when they make a bad credit loan. The market is uncertain at the moment, but it will eventually go back up even if it still has to go down some more. That has always been the case in history and once the market falls significantly it has nowhere else to go but up.

So, hopefully the recession will be short lived and home loans will not be so difficult to obtain in the future. They should be, however, reserved for those with demonstrated good credit and an income to repay the loan. This will keep the banks from being in this situation again in the future.

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Mortgage Calculator or Amortization Table?

Both a mortgage calculator and an amortization table can be used to find out the monthly payment required on the property you would like to buy, but they approach the calculation differently.

Although they have similar functions, the mortgage calculator and the amortization table each have their own place in your mortgage control system.

Mortgage calculators range from ones that calculate a simple loan, to those that can work out exactly how much you can afford, to those that will determine how much you can borrow for a home loan depending on your current situation. Mortgage calculators are a good way for you to get a general idea of what you need.

An amortization table, on the the other hand, is an extensive spreadsheet of every detail of each type of loan, length of loan, interest rate, and many other factors that can confuse a novice.

A mortgage calculator may not give you as much information as an amortization table, but it may present basic information clearer and quicker. Once you have a good idea what you want in a loan, then an amortization table can help you delve deeper into the long-term ramifications of the loan.

They can be used separately, but their strength lies in a combination of both to enable a closer watch of the financial picture of your mortgage.

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Low Credit Score Home Loans - Understanding No FICO Score Home Loans

When applying for a mortgage loan, your credit score plays a huge role. Thus, many people choose to establish a good credit history before applying for a mortgage. Having a low credit score will not necessarily prevent you from getting a mortgage. Likewise, it's possible to get a mortgage with no credit history. Before applying for a no FICO score home loan, it is important to understand how these loans work, and how to qualify.

Purpose of Credit Scoring

Without credit reports and credit scoring, potential lenders would be unable to assess an applicant's creditworthiness. Credit reports contain very detailed information about our credit history. For example, the length of credit history, number of credit accounts, outstanding balances, etc. Along with creditor information, reports also contain a three digit number. This is the FICO score. Credit scores range from 300 to 850. Higher scores obviously means better credit.

How Credit Scores Affect Mortgage Loan Approvals

Years ago, obtaining a mortgage loan with poor credit was rare. However, lenders have begun offering flexible programs, which make it possible for more families to qualify for home loans. Among these includes a variety of mortgage loans especially for people with bad credit.

Bad credit generally consists of several late payments, bankruptcies, foreclosures, collections, judgments, etc. All of these factors contribute to very low credit scores. Low credit scores equal higher interest rates, which will increase mortgage payments. Fortunately, there are loan programs in which FICO scores are not a primary factor.

What are No Credit Score Home Loans?

If you have bad credit or no credit history, you may qualify for a no credit score home loan. In many instances, homebuyers earn a sizeable income, in which they can afford to buy a home. However, because of past credit history, many will not qualify for a conventional home loan. Rather than wait until credit improves, these individuals may apply for loans without using credit scores.

Try using one of ABC Loan Guide's
Recommended Poor Credit Mortgage Loan Companies.

Many mortgage lenders offer these sorts of loans. However, homebuyers must meet certain criteria. For example, most lenders will only finance 70% or 80% on a no credit score loan, thus the homebuyer must have a down payment of approximately 20% - 30%. Secondly, most lenders require full documentation on these loans. Thus, homebuyers needing a no doc or stated income loan may not qualify.

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Rev Up Financially With Lower Equity Home Loan Mortgage Rate

Vroom! Vroom! Nestled in the driver's seat, you feel like you are at home in your favorite recliner. With a firm grip at 10:00 and 2:00 on the steering wheel, you bolt down the German Autobahn with no other cars in sight. The wind whips through your hair as sunrays melt off your cool shades. You glance over at that someone special in the passenger's seat and shout out, "It doesn't get any better than this!" Suddenly, the sound of a throat being cleared causes your eyelids to sheepishly rise. The voice came from the salesman "Honest Al," who is sporting a green plaid suit that was the latest fashion...30 years ago! It hits you that you are in a car showroom. You ask Al about the lowest price he can offer you. After he replies, your jaw hits the car floor. If he had given you an equity home loan mortgage rate at relatively the same value, the result would have been the same.

Good, Better, Best

A gold nugget of shopping wisdom is that you can always find a better price. You could find a better price at a car auction than at a used car lot. You could find a better price in a clothing brand's factory outlet than at a department store's seasonal sale. And you could find a better equity home loan mortgage rate on the Internet than at a fly-by-night mortgage lender. Although it takes some time and effort to find the best mortgage interest rate, it is definitely worthwhile. Except for those who can afford skyscrapers and corporations, houses are the biggest investment for most people. So, it pays to spend some extra time and energy to find the lowest equity home loan mortgage rate available.

A Date with Rates

Life would be easier if you could just take out a mortgage and always pay a standard equity home loan mortgage rate. But the system never works that way. Banks and construction societies are constantly updating and broadening the types of mortgages that they offer. This constantly keeps the market competitive. One of two significant aspects of mortgages is how you pay the interest on the capital. Some examples include:

* Fixed rates, in which the rate is fixed for the timeframe that is agreed upon.

* Variable rates let you pay the current rate, on your loan. The mortgage rate usually changes after interest rate changes are calculated for a year. The mortgage rate can also change each time interest rates change.

* Discounted rates apply over a set period. This program offers the borrower a price cut on the lender's variable rate. The rate paid changes according to changes in the variable rate.

* Capped rates are fixed, but you pay the lower rate in the case that rates fall.

An Engine's Rate

When searching for the best equity home loan mortgage rate from these various types, you can do the footwork yourself by using the search function at websites with equity home loan mortgage rates. Usually the search engine will request that you supply information, such as your credit profile, your home (family) description, and the type of loan. Then after clicking on the search button...BOOM! You have the info you need.

When shopping for clothing, computers, or cars, you can always find a better price. Finding the lowest equity home loan mortgage rate is no different. Speed off and find the best one today!

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Danger of Interest Only Mortgage

The biggest potential danger that any one going in for an interest-only mortgage lies in that they may actually be tempted to borrow more than what they could realistically afford. The temptation to own a house, for example, may be so overpowering, that you may forget that interest-only mortgages are interest-only, only in name! You will have to repay the interest and the principal, over a period of time.

One comes across several ads in various media these days offering you the 'greatest homes' because 'you deserve them'. One could be easily mislead by such tempting ads. But is it the reality? Are interest-only mortgage loans so attractive? You should never forget that interest-only mortgages work on certain assumptions. For example, imagine you buy a house based on the assumption that the price of the house would remain the same even after a few years. But your assumption could go all wrong. Prices may increase and in such a scenario; you will have to pay more interest as well as principal. What if property prices come down? In this case, you will actually end up paying more than what you owe!

Another potential drawback of interest-only mortgages is the fact that interest rates are bound to vary from time to time. All over the world we are seeing a reduction in interest rates, primarily due to buoyant markets. But will it remain so? It is as fickle as the weather. What if we go through a depression? Once the interest rates rise, you will have to pay through the nose.

Young executives go in for interest-only mortgages based on the assumption that their career growth will enable them to repay the interest as well as the principal within the stipulated time period. This could be a big mistake. They would do well to remember Murphy's Law: if something can go wrong, it will go wrong.

These are only some of the dangers that could befall you while going in for an interest-only mortgage loan. You can get vast information on these types of loans through online resources. Better still: consult your personal financial advisor for further clarifications.

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How Does Bank of America Mortgage Principal Reduction Work?

If you think you are being dealt the heavy end of the mortgage principles it is about time you rejoiced and relaxed thanks to mortgage principal reduction. Even as you read this article steps are being taken to make sure that if you are one homeowner with negative amortization or owe more than 120% of your homes value you get to avail of this invaluable opportunity. The lucrative is simple mortgage principal reduction and hopefully though it has but started by the Bank of America but other lenders will probably follow suit.

The program, due to launch in the month of May is the latest attempt of the bank of America aimed to prevent foreclosure. The bank of America has recently announced that to prevent foreclosure and to better client-bank relationships they will be launching a new way to help people owing more than even what their home actually costs.

What will happen is If you owe more than 120% of the overall cost of your home the bank will set aside a portion of your loan. Most probably the excess percentage points over the 100% mark and set it aside as an interest free forbearance. They are positively willing to forgive this forbearance after a period of five years, provided you do not default in any of your payments.

The deal looks too good to be true but believe it folks, the bank really is out there to get its money back and it does not want to disown you from your home. The lucky people eligible for the offer can have forgiven up to 30% in mortgage forgiveness and get bearings in paying up their loans.

Through a gross estimation of around 45,000 individuals will qualify. The bank of America will soon start sending these lucky people notifications provided of course that they meet the preliminary qualifications.

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Ways To Get Better Home Insurance Rates

Home insurance is ideal to have in order to protect your properties from damages brought about by catastrophes both natural and man-made. Depending on your chosen policy, home insurance rates may seem quite expensive.

However, lowering the risk for damages and placing a safety measure all over your house may help you get a good and affordable premium rate for your home. Below are some tips you can do to minimize rates and get the best insurance deals. These tips are relatively simple and affordable in order to minimize insurance premiums, saving a lot of money in the end.

A well protected home means lower risk for damages. Anything that lowers the possibility of damages will lower insurance premiums. Insurance companies want to give higher premium rates to more risky households. Because of that, start installing those smoke and fire detectors for safety measures and check their batteries as often as required.

Ask other home owners or suggest to your association to apply for group insurance as these offer more affordable rates than individually applied policies. Typically, group rates are cheaper than getting individual coverage for your house. However, it is best to remember to compare rates to get the best policy package your community can avail.

Arrange special security and fire systems that can be monitored 24 hours a day. Even the smallest spark can permanently destroy a house. That is why an investment in these systems is wise to purchase. This will not only make you feel safe while you're asleep, but the lowered risk will also help in lowering your insurance rate.

Safety locks on windows will provide you with security from burglars. If it does not dampen your taste, add burglarproof bars to your windows to maximize safety measures. Although bars are not necessarily essential, precautions for theft are highly recommended for the obvious safety aspect but also the savings in insurance rates.

Ensure that materials used in constructing your home are fire-proof, especially those used on the walls and check electrical wirings and make sure they are properly fixed to lessen the chances of fire. Keep plants, shrubs and trees at least 10 feet away from the walls of your home to stop fire from spreading should the instance arise.

Remember, exerting extra effort on protecting your home and maintaining it in a good condition will give you more than just good premium rates on your home insurance. It will also keep you safe, secure, and relatively worry free everyday.

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Piggyback Second Mortgage

The Piggyback Second Mortgage provides an option to home buyer who can not afford a twenty percent down payment. Without enough funds for twenty percent down payment, the home buyer pays an expensive Private Mortgage Insurance (PMI). Mortgage Lenders are able to provide the usual ten percent second mortgage without PMI. Only a few mortgage lenders can provide fifteen or twenty percent second mortgage without PMI.

Another term for piggyback second mortgage are 80/10/10, 80/15/5, 80/20/0 mortgage. The 80/10/10 is the most popular. There are only a few who provide 80/15/5, and 80/20/0. The three numbers represents the percentage of first mortgage, second mortgage, and down payment. For example, the 80/10/10 means eighty percent first mortgage, ten percent second mortgage, and ten percent down payment.

The Advantages of Piggyback Second Mortgage

The demand for piggyback second mortgage increased lately. There are a few reasons. The monthly mortgage payment costs less than a mortgage with PMI. The PMI premium varies on different states and situation. The PMI protects the mortgage lender in case of default on mortgage payment. However, the PMI has no benefit at all to the home buyer.

The interest on first and second mortgage are tax deductible from the time being. Mortgage interests are actually one of the important tax deductions for home owners. In fact, some homeowners elect not to pay off mortgage early for tax purposes.

The home buyer avoids the higher interest for Jumbo Mortgage Loan. Every year, the government sets conventional mortgage limit for purchase. If the mortgage exceeds the conventional mortgage limit for purchase, the mortgage lenders considers the mortgage application as Jumbo Mortgage Loan. Since the Jumbo Mortgage Loan offer higher risk to mortgage lenders, the mortgage lenders give higher interest rate on Jumbo Mortgage Loan.

The Disadvantages of Piggyback Second Mortgage

The house prices goes up or down. As the house prices goes up, the equity on the house grows as well. When the home equity goes up to twenty two percent, the home owner can cancel the PMI. The Homeowners Protection Act of 1998 requires the removal of PMI on loans made after July 29, 1999 after the homeowners pay down twenty two percent of equity.

Mortgage Lenders made Piggyback Second Mortgage more difficult to acquire than traditional mortgage. To qualify for this mortgage, the home buyer needs 680 Fair, Isaac, & Co (FICO) score. The FICO score measures the individual record in using credit.

Second mortgage comes with its own costs. The home buyer pays the same kind of costs as the first mortgage. Furthermore, the home buyer pays the same penalties on mortgage payment default.

The final verdict on Piggyback Second Mortgage

The Piggyback Second Mortgage benefits the home buyers, but the second mortgage requires some crunching on numbers. With this second mortgage, the home buyers pay less mortgage payment, and income tax. The PMI providers are feeling the pinch on loss business. In the future, PMI could be a tax deductible as well. The House Resolution 3098 and Senate Bill 132 (which are currently on pending) allow deducting the PMI on income tax.

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Save Money By Paying Mortgage Weekly?

If paying your mortgage biweekly (every two weeks) cuts about seven years off your pay back schedule, then paying weekly should cut off 14 years, right? If you find a place where that works, let me know and I'll sign up with you!

Though there are international variations in the way mortgages are calculated, most United States home loans have some common characteristics. Two notable ones are that interest is computed monthly (usually at 1/12th of the annual rate) and that the interest is charged "in arrears," that is, after it was used. Though these can vary among lenders, most follow this format.

Therefore, your mortgage interest is the same for the month of March with 31 days as it is for February when there are only 28 days. In addition, any payment you make this month will not reduce the interest you owe next month, because of that "arrears" thing. It has already been established you will pay your interest rate times .o8 (1/12th of the rate) times your remaining loan balance.

One more basic to keep in mind: most U.S. lenders want to process your mortgage payment only once a month. Biweekly mortgage plans are usually implemented by companies external to your lender, and provided as a service to you (you pay a fee for the service) and to the bank (there are fewer mortgage defaults since the payment is automatically deducted from your bank account). It's a win-win-win. Properly implemented, you could pay back a 30-year fixed-rate loan in about 23 years, depending on loan specifics, of course. (For $200,000 at 6%, the technique eliminates nearly $50,000 of mortgage interest.)

I learned about this "hold for full payment" policy the hard way on a remote rental property on which the property taxes were increased. I paid my usual payment to the mortgage company. Next thing I knew, I got a 30-day late notice. A phone call to the mortgage servicing company revealed they weren't equipped to notify borrowers of property tax increases uploaded to their computers by tax assessment offices. Their method was to wait for the next month's payment, slice the $28 off needed to supplement the last payment, and carry me forward a month behind from then on. They-and other mortgage companies-are quite rigid about the "no partial payments" thing.

This is why for a biweekly payment plan to work, either an outside party collects your two week's worth of mortgage principal and interest and holds it for you until they collect the next two weeks' worth, then combines the two half-payments and delivers them to your bank; or your bank has a system in place, totally at their discretion, for applying your payments. Payments are usually still held and applied monthly, but a rare bank might actually apply the two-week portion when it is received.

The reason the biweekly payment plan works so effectively is that there are 26 two-week periods in a year. Fifty-two divided by two equals twenty-six. I hope by seeing how a biweekly plan actually works-which is a bit different from how most of us are used to thinking they work-the problems with a weekly payment plan become clear.

Lenders are not set up to accept payments four times a month, or 4.2 times a month (the average number of weeks in a month). You could operate your own weekly payment plan, with your year's payments due divided by 52. You would then set the money aside, not to spend it, until you have collected two (if you are also working with a biweekly service company) or four, if you are doing this completely on your own.

Either way, you are squeezing in an extra month's payment every year. And the best part about it is-if done correctly-that the 13th lump sum goes to principal only!

To receive a free report called "Warnings About Biweekly Payment Plans," simply check the box at www.letyourmortgagemakeyourich.com Or you can select the free list of credit card companies that pay rewards points directly to your home loan.

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Bad Credit Home Refinancing - How to Pay Off Your Current Mortgage Loan to Increase Credit Rating

Because of the economical uncertainty, most of us have our credit standing hurt terribly in these bad times. If ever you are one of them, so what can you try to do to escape the economical mess that you could possibly be in? A technique is to obtain a bad credit home refinancing mortgage.

Understanding What Home Loan Refinance Is

This refinancing scheme makes it possible for you to pay back your existing mortgage loan generally at a more affordable rate of interest. In the case that you have a negative credit score, such refinance mortgage is even harder to obtain. Then again, do not get frustrated as right now there are several bad credit home refinancing programs available in the home market and competition is very intense.

How You Can Locate And Obtain One

Initially, what you could do normally is to shop over the internet to find such type of bad credit home refinancing scheme out there. Most of these financing companies offer their greatest options with extremely low rates and provide the convenience of processing the application submissions over the internet. In addition, you could get the assistance of mortgage loan professionals to help you find a reliable and highly regarded provider to give you the most desirable home mortgage refinancing options. This way, the web has become one of the most effective resources to assist you to locate that financial institution on the internet.

Home Refinancing Can Help You To Increase Your Credit Standing And Prevent Foreclosure Too

With the bad credit home refinancing option that you used, you are sure to pay off the current home loan on time. By paying off punctually, you can in fact help to raise your credit rating. This will be beneficial to you because with an enhanced credit ranking, if you try to get hold of any kind of financial loans in the future, it will be easier since you have a far better credit score.

On top of that, a bad credit home loan refinance program can assist you avert any possibility of foreclosure. Not only you lose your home, your credit standing can be in for a suicide as it takes long time to bring your credit back to a good score again.

Who Should I Find To Obtain Refinance Home Mortgage

You should never opt for banking institutions while shopping for a bad credit home refinancing option. In these days, bankers do not desire taking the risk to give a loan to customer with poor credit worthiness. These bad credit mortgage refinancing options are introduced specifically to people with poor credit rating and there are so many lending organization on the market who specialized in this type of refinance mortgage loan only. With appropriate investigating carried out over the internet, you could surely be able to locate the loan provider who will provide the best terms that suit your prerequisite.

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New Jersey Commercial Mortgage Brokers

Owning real estate was never so easy in New Jersey. The state is bursting at its seam, thanks to commercial brokerage services. With the increasing competition among lenders, we are witnessing an unprecedented boom in commercial mortgages. They have made owning a dream property, a relatively easy possibility. Many New Jersey malls owe their existence to these commercial mortgage brokers.

Increased competition has resulted in lower mortgage rates. This trend is visible, through most parts New Jersey. Ads rave about "the lowest commercial mortgage rates." Lower interest rates are the first things that many a cost conscious customer looks for in a loan, and the literal barrage of these ads will tempt most. The adding appeal lies in the fact that the loan can be paid back over an extended period of time. Some lenders offer a thirty-year period to repay the loan, making it feel very possible to pay back an astronomical amount of money. However, there are potential risks involved in going in taking on one of these loans with low mortgage rates. For one thing, you cannot foresee and forecast the future, accurately. Interest rates are liable to up and down. What happens to your loan, if the rate rates shoot through the roof" What happens if you want to move on to another commercial property" What happens if real estate prices, come crashing down" All these questions have to be answered. Otherwise, there are genuine chances that you will end up paying more than what you had anticipated.

You can get extensive information on New Jersey mortgage brokers, on the Internet. You can surf through the web sites of leading online lenders. You can also find reviews of offers that are currently available. You can get in touch with your friends, who have taken advantage of these commercial mortgage loans and ask their opinion. You can also consult a financial advisor, who will definitely help you make a prudent decision.

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Financing a 2nd Home with a Second Mortgage or Refinance

According to the National Association of Realtors (NAR), almost 40 percent - or 3.34 million - of the homes and condominiums bought last year nationwide were by people who were buying second homes. "What we see now is a crossover between largely vacation- and investment-home owners, with people recognizing the value of those investments and pouring more assets into real estate," stated NAR President Thomas M. Stevens. With so many consumers buying investment property, perhaps you're wondering about purchasing a second home or buying a vacation home yourself. Now how do you finance it?

As property values increase, many consumers find that they have equity available to them in their present homes. Twenty-eight percent of investors with an investment property mortgage used their primary residences to procure down payment funds and you may be able to do the same. Taking out an equity loan or second mortgage to do home improvements and increase the equity further is a great idea. However, you can take this idea one step further and utilize it for a down payment on a second home. Taking out a second mortgage may be an excellent way to begin home construction on your dream vacation abode or to buy investment property.

Another means to this end is mortgage refinancing if you don't want a second mortgage. You may still be able to refinance your home at a lower fixed mortgage rate or get lower payments with an adjustable rate mortgage and cash out. You'll also want to think about whether you want a fixed rate mortgage or adjustable rate mortgage on the second property. A fixed rate will ensure stability in payments, but if you plan on flipping, an adjustable mortgage may be the best plan. If you have equity and good credit, your second home may be easier to finance than you think.

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