When is it time to refinance your home?

The last few years have been great for those who took advantage of the low mortgage rates the real estate market has been experiencing. If you did not take advantage of it, then you missed a really good deal.

The Fed has come in the recent times to increase rates bringing an end to the days of 3.55% financing. Since it is hard to identify the best times for home refinancing, we are going to look at the best times you can use .

When the interest rates are low

The current economic climate is right for a rise in interest rates. In the start of 2017, interest rates on 30-year mortgages climbed above 4% compared to 3.55% which was in 2016. By 2019, researchers predict that it could hit 6%.

These statistics show us that paying a percentage higher than the current rate in the market should be ideal for refinancing. This is the best time to refinance before rates move higher. When you get in when the rate is low, your monthly expenses will come down by hundreds of dollars.

When home values increase

Buyers can be pushed by rising interest rates. When the potential buyers jump into the real estate market, prices will rise, and it increases the value of homes. If you are planning to refinance, this is is the best time, and we are going to explain why.

  1. You will get great terms for a house that has a high appraised value and a mortgage balance that is low. This home is a low risk when the banks come into the picture, and they can easily recoup the loss in case you default.
  2. In case you have equity that is above 20% the value of your home, you can drop the insurance of the private mortgage you purchased using the original loan. PMI costs typically 1% of your loan on a yearly basis; when you have a $100,000 loan, you will be saving an additional $100.
  3. When the home values are high, you can go for a cash-out refinancing where you can access a new loan for part of the equity of the property, instead of going for alternative loan options.

Target refinancing toward the end of the month or at the end of the year

Mortgage loan officers normally work to reach their targets by the end of the month. Financial Samurai stated that loan officers normally put their foot on the gas during the last part of the month. When you refinance during the last week of the month, you are more likely to get better terms because the loan officer is working to meet the monthly targets.

Individuals in the field of financial services depend on bonuses at the end of the year, and this makes them desire to close more deals by the end of the year. The trick to use in this scenario is identifying an institution’s fiscal year cycle, because it may not be parallel to the calendar year. If you seek to refinance during the last quarter of the institution’s year, you are more likely to benefit because loan officers fight to shine for bonus evaluations.

We hope you will take advantage of the points highlighted above to make the most of your home refinancing plans.

What are the Requirements for Online Loans in Canada

Online loans are a quick way to getting money when you are facing cash flow problems. Online cash loans are instant and save you from the hassle of going all the way to the bank to apply for a loan. It is a fast and paperless way to get a loan in Canada.

Why Paperless?

With online loans, you do not need to physically present yourself at the bank when applying for a loan. There is e-signature and an instant verification system put in place to help you get verified, and save you the hassle of filling up numerous forms when applying for an online loan.

Instant verification makes it possible for your bank statement to be viewed online by you authorizing a view-only access to your account, so that your account details can be verified online without you having to send in your bank statement. It is a safe and secure system and you do not have to be worried about your details or passwords being stolen by anyone.

Requirements for Online loans

Just as normal loans, online loans have requirements on what is needed before your loan application can be processed:

  • You must be 18 years or older.
  • You must be a Canadian citizen.
  • You must have a phone number that is active and that is registered under your name.
  • You must have a monthly income where you are paid via direct deposit.
  • You must have a stable job or a stable source of income for a period not less than 3 months.
  • You must have a Canadian bank account that has been active for a period of not less than 3 months.
  • You should not be bankrupt or about to be declared bankrupt.

Job confirmation

Once you have presented all the information needed, a confidential call is made to your employer to confirm that you are still employed, and how long your employer intends to have you onboard. The calls are confidential meaning, the reason as to why the call is being made to your employer will not be made known to them. Your employer will not know that you are applying for an online loan.

Can my loan application be declined?

Your online loan application can be declined for a couple of reasons:

  • If you did not provide truthful information.
  • If it emerges that you are bankrupt or about to be declared bankrupt.
  • If you are not employed.

Turn Around Time

After you have applied for your online loan and it has been approved, it normally takes approximately 24 hours or less to receive your loan into your bank account. Online loans are processed quickly and are instant.

While online loans provide a quick solution to your cash problem at hand, you should always do thorough research to compare lending and interest rates with your local banks, and confirm if it is a viable solution for you.

Working with Reputable Credit Repair Brings Better Credit Score In The Long Run

The one who is into bad credit days will always try to come out of the mire. They would opt for different sources that promise to repair their bad credit and turn their credit scores to positive ones. These are people who have been through bad days and wanted to grapple for some strong base under their feet. There are many companies now who actually work for repairing credit. These companies help you to do the things that will bring you out of the mess! You can also get inspired to check your bills to find some disputes and mismatches that are adding little to your huge bad credit.

Finding and reporting disputes

These organizations often charge you a fee and help to take off any negative scores and fees from your credit bills. There are some reputable credit repair companies who make way so that your credit history is better than before and you get on smoothly with your life and get ample time to pay off your bad credit. They will check your credit bills and will find if there are any information that are incorrect. You can report about these disputes to the credit reporting agencies by phone or by mail. The reporting can also be done online.

Contract with the company

These companies do not enjoy any rights on reporting disputes but they have their own working area. These companies are regulated by Credit Repair Organizations Act that is also called CROA. You should know the way these companies work. They must give you a written specification of the services that they may provide you. There is often a contract drawn by them and you must get time to go through the contract and understand it. You can also take suggestions from your friends or relatives before consenting to sign the contract. They will not advise you to make any false statements or claims that can place you in a guilty frame in eyes of law.

Working areas of the companies

There are many such companies that work to bring your financial condition in a stable stage. They will start work by pulling up your credit history and take note of the issues that are giving you the hassles. There are 3 credit reporting agencies who provide these reports and furnish data on your credit history. The company will identify the areas that need to be worked upon and then take up the supporting bills or other documents that you may have with yourself.

Longevity and reputation matters

The supporting documents help them to actually make the calculations of your bills and check the items against each head. They work on the Fair Credit Reporting Act – that often takes your side in this matter. The information in your report that is not accurate is thus calculated and taken off. Now the credit bureaus are approached and they should resolve the dispute within a period of 30 days. There are some reputable credit repair companies who work through the whole process and help you with the repairing of the credit history. When you are looking for the credit repairing company, you must therefore look for their longevity and reputation. You must also check the money back guarantee that they provide. These will help you to get the positive credit score by proper repair of it.

 

Getting a Mortgage with Bad Credit

Buying a home can be stressful. One of the major stressors is getting a mortgage. There is so much involved and it is quite the process. To add to that stress, if you have bad credit, it can be more difficult to acquire. Is it possible to get a mortgage with bad credit? Are there ways to avoid any issues with getting a mortgage? Your answers are below.

Can you still get a mortgage with bad credit?

The short answer to if you can get a mortgage with bad credit is “yes”. You may have to shop around and may have to pay a higher rate because of it. A product called a Bad Credit Mortgage is available to consumers in this situation.The bad credit mortgage is often called a sub-prime mortgage and is offered to homebuyers with low credit ratings. Due to the low credit rating, conventional mortgages are not offered because the lender sees this as the homebuyer having a larger-than-average risk of not following through with the terms of the loan. Lenders often charge higher interest rates on these mortgages in order to compensate for the higher loan default risk that they are taking.

Are there ways to help you get a mortgage with bad credit?

Your credit score is just a piece of the puzzle the lender uses for deciding if they will give you a mortgage. Things such as employment and paying your bills on time are also indicators of approval. Often times mortgage lenders put applications through automatically and the system may reject you. If you tell them to manually review your application and look at the other positive credit factors on your file, you may have a chance. You still may need to explain your low score, but if you can prove you pay your bills on time (especially over a 12 month period) or hold a consistent well paying job, then that is a plus. If your credit score is bad because of late medical bills or student loans, they may look past the bad score as well. So this is something to bring up.

Another way to get a mortgage with bad credit is to make a bigger down payment. If you make a large down payment than the loan amount will be for less so it may increase your chances of being approved. A down payment of 20% or more puts you at an advantage.

FHA Loans

There are FHA loans which is a mortgage issued by federally qualified lenders and insured by the Federal Housing Administration (FHA). FHA loans are designed for low-to-moderate income borrowers who are unable to make a large down payment. This is another option that may be able to help you as well.

As you can see, there are many resources and professionals available to help you with the mortgage lending process in the event you have bad credit or low cash reserve. It is important to use those resources so you can make your home buying dreams a reality regardless of your financial situation.

Britons Buck the Trend and Give Debt the Finger

UK national debt is currently estimated at £1.83 trillion – well beneath the US debt of over $19 trillion. UK debt was less than £0.5 trillion in 2005, but by 2011 it rapidly exceeded £1 trillion. National debt versus GDP in the UK was hovering at 38% in 2005, but by 2016 it hit 80% of GDP. Fortunately, Britons have curbed their expenditures and this trend is flattening out. In the run-up to the UK general elections, Britons reduced their borrowing further, and there were also declines in mortgage approvals.

Consumer credit weakened to its lowest level in 1.5 years in May 2017, as credit card spending was curtailed, hitting retail sales hard. According to the BBA (British Bankers Association), the growth in consumer credit was 5.1% during May, down 1.3% from April 2017. The decline in credit borrowing is part of growing uncertainty in the United Kingdom. Concerns about Brexit negotiations are mounting, after the third round of talks ended in a stalemate recently. Weakness in consumer expenditure has slowed GDP growth in the UK to just 0.3%. Declines in approved mortgages have also been reported, and the month of April had the dubious honour of the lowest mortgage approval rate since September 2016.

Fed and BOE Eschew Rate Hikes for Now

A slowdown in consumer spending is coupled with decreased business investment levels in the UK. Brexit-related concerns remain the #1 reason for the slowdown. Many international companies are heading for other European cities, with concerns mounting about London’s viability as the centre of European commerce and business activity. UK banks and financial institutions are at risk of losing their passporting rights to other cities across Europe, and this is causing mounting uncertainty in the UK.

Reports about the current state of the UK economy vary from stagnant to modest growth. The GBP continues to gain ground against the beleaguered USD, given that US economic data has failed to impress Fed FOMC members. The current probability of a rate hike in the US has dropped to just 2% for the November 1, 2017 meeting of the Fed FOMC. The projection of interest rates remaining at their current level of 1.00% – 1.25%, is now 96.7%. If we extrapolate to December 2017, the Fed will be convening for the last time on Wednesday, December 13, and there is a 36.2% likelihood of a 25-basis point rate hike. This is the highest probability for the remaining Fed meetings in 2017.

Falling Real Wages and Fewer Big Ticket Purchases

The impact of Bank of England or Fed rate hikes on monetary policy has a direct effect on consumer credit. The bank rate in the UK and the federal funds rate in the US serve as barometers of lending rates for credit card companies like Visa, American Express, Discover, MasterCard and others. The higher the federal funds rate, the higher the APR (annual percentage rate) of the credit cards. In the UK, the BOE is targeting an inflation rate of 2% before it pulls the trigger on higher interest rates. In the US, the Fed is looking for signs that the US economy is improving, by way of rising inflation, falling unemployment and strong fundamentals.

If the BOE or the Fed decides to raise interest rates, they risk adding additional pressure to borrowers who are currently indebted on their credit cards, personal loans, auto loans, and mortgages. This is especially true of variable rate mortgages, and credit cards. The housing market is directly influenced by the prevailing interest rate. The higher the federal funds rate or the bank rate, the higher the fixed interest-rate or the adjustable interest rate will go. For now, Britons are holding back on big-ticket purchases, and are concerned more about job stability and staying afloat than indebting themselves with falling real wages and rising prices.

Everything Consumers Should Know About Debt Consolidation

Believe it or not, falling into a debt trap is easier than you could ever imagine. There is a possibility that you’ll become injured at work. Then, you’ll be unable to generate an income. Alternatively, there is a chance that your business venture will fall flat. Thousands of people get into debt each and every day in the United States, so nobody is invulnerable. Debt consolidation is a great way for those in debt to get a head start in paying off that debt. Below, you will learn all about consolidation and its perks.

Understanding Debt Consolidation

So, what is debt consolidation? Well, it is actually taking out a loan and getting yourself into further debt. Of course, there is a catch. Through debt consolidation, the loan is utilized to pay off all of your debts. If you were initially in debt with three or four companies, the debt would be consolidated into a single debt. Then, you would be required to pay back the lender for the consolidation loan and nothing else. Ultimately, debt consolidation is eliminating multiple debts and transforming it into a single debt. This might not seem like a big deal initially, but it offers a wealth of benefits.

Secured And Unsecured Loans

Remember that debt consolidation can be done with a secured or unsecured loan. A secured loan is safer for the lender, since you’ll be required to put certain property up as collateral. This could be your automobile or your home. Unsecured loans are based on your credit profile (credit score, income, debt to income ratio, etc). While the unsecured loan might seem like a better idea, it is important to remember that this type of loan usually comes with a higher interest rate for most people. However, personal loans can still be beneficial since the interest is amortized over time.

Lower Interest Rates

So, what are the major perks of debt consolidation? Well, the benefits depend solely on the type of loan in question. If you’ve taken out a secured loan, there is a good chance that your interest rates will be lowered significantly. As mentioned above, unsecured loans can still help you get out of debt faster. These type of loans to consolidate credit card debt, can even help you improve your score by up to 40 points (according to Payoff). Plus, you’ll lower the interest rate by a considerable amount and that will help tremendously. The interest causes your debt to accumulate over a period of time.

With a lower interest rate, your debt will remain lower so you can get it paid off quicker. In some cases, the interest may be tax deductible!

No Risks

If you opt for the unsecured loan, you’ll be able to get the money you need without any risks to your property. As mentioned above, there is no need to put up any property as collateral with an unsecured loan. Even if you default, you will not have to worry about losing your vehicle or home. Just remember that unsecured loans come with higher interest rates. Therefore, if it often better to go ahead and put your property up as collateral to avoid excessively high interest rates.

Nevertheless, both forms of debt consolidation are very helpful. 

Make A Single Payment

Often time’s people end up in debt, because they can’t keep track of all the bills they have and when exactly each is due. This leads to a lot late charges and additional fees that would not normally apply. However, when you get your debt is consolidated, this is something that you do not have to worry about, because everything will be complied right into one easy payment. This makes it incredibly easy to keep track of everything. If you’re a forgetful individual, you will most definitely benefit from debt consolidation. This procedure will make your bills much easier to keep up with, so you can guarantee each is paid on time each month!

Tips to Keep the Debt Monster at Bay

Ever found yourself saying, ‘It’s really easy to spend money, but difficult to pay it back.’ If so, you’re not alone. Many folks struggle with managing their finances. Consider that Americans typically spend $1.33 for every $1 that they earn. That means the US is a highly indebted society, and these trends are growing. The problem is overspending. Living beyond your means is a sure-fire recipe for disaster, and sound money management is needed to curtail these excesses.

Psychologists attribute overspending to emotional drivers. People routinely spend money to feel better about themselves. We spend money to combat boredom, uplift ourselves, or to alleviate stress. Fortunately, there are many other ways to deal with these anxiety-ridden emotions, notably finding zero-expense activities such as exercising, reading and studying, or simply spending time with friends and family.

Are Credit Cards Lifesavers?

Households must guard against the debt trap at all costs. When debt becomes impossibly difficult to repay, owing to high interest payments, a negative spiral ensues. It’s important to prioritize debt repayments, debt management, and debt alleviation above all else. The problem with debt is that it rapidly accumulates, and the interest repayments become untenable. Topping the list are credit cards. These pieces of plastic, infused with sophisticated chip technology, can be lifesavers in an emergency. However, if managed improperly credit cards have the potential to worsen your financial situation.

Consider some of the fees that you are likely to pay on credit cards: cash advance fees which range from 2% through 4% of the amount that you are withdrawing, in addition to a fixed ATM withdrawal fee. There are also late payment fees to consider, often in the region of $39 +, and if you go over your credit limit, a fee of $35 + may be added on to your bill. Many credit cards offer their services at zero annual charge, but others can charge anywhere from $25 – $400 per year. That’s a significant drain on your finances, given that the APR on credit cards is extortionary to begin with.

Always Read the Fine Print

Your first order of business when trying to get out of debt is to manage your outstanding credit card balance well. Transfer your balance from high interest credit cards to a low interest credit card (be mindful of the transfer fees) and pay it down as quickly as possible. In this vein, it’s important to make more than the minimum monthly payment on your credit cards. Consider that credit card companies can change their interest rates at their discretion.

Read the terms and conditions of your credit card provider carefully – you certainly don’t want to be caught unawares. If you are delinquent in any of your credit card accounts, or other lines of credit, you may be penalized with higher interest rates. Another thing to be careful of is the rewards program on offer. You certainly don’t want to be paying a high annual fee and not recuperating your costs in the form of generous cashback offers, exclusive rewards, and related benefits.

How Can You Live Frugally?

We have already established that spending money you don’t have is a recipe for disaster. Instead, look to other activities that are cost-effective and fun to pass the time. The benefit of low-cost rewarding activities far outweighs that of spending excessively and then having to worry about paying it back. People often confuse wants and needs. Wants are desires, and needs are requirements.

We need food, shelter, medical care, and transportation. We want sushi, palatial homes, Ferraris and the like. It is a fine line to balance our wants and needs, but that’s where living within your means comes into the equation. Frugal living allows you to plan for the unforeseen, put away money for retirement, and prevent the debt trap from ever occurring.

There are many theories on how best to deal with the urge to splurge. Some folks advocate freezing your credit card in blocks of ice and waiting for them to thaw when you feel the urge to spend. Others simply recommend cutting up your credit cards every time you are thinking of making a big purchase. What you are effectively doing in all cases is curbing your desire to spend money. That’s the first step in the right direction!