Loan

Need a $500 Dollar Loan Today? Try a Payday Loan

admin — Mon, 07 Jun 2010 09:46:00 +0000

Sometimes life doesn’t play fair. Payday is about a week away and your car engine light goes on. You’re overheating. You take your car to the mechanic. He gives you the bad news. Pay $350 now or blow out your engine. You know you don’t have money available. Your credit is horrible and you don’t have a credit card. Where do you get the money?

Consider a payday loan. It could be the easiest and fastest solution is to getting the cash you need. A payday loan can be obtained quickly online. With a payday loan the upside is, there are usually no credit checks and very little hassle. Plus with a payday loan, you can get the money wired directly into your bank account the same day you apply.

The downside of a payday loan? The interest rate on a payday loan which really is a fee – is kind of high. But again, it’s a fee for the convenience of a no-credit check payday loan which is usually about $30 per $100 borrowed. Just make sure you cover your payday loan in full on your next payday.

You can defer the payday loan principal and keep paying the fee until you have the money to pay off your payday loan in full. (warning: this can go on for up to 9 pay periods!). That means you’ll be paying a lot of interest on that payday loan.

Face it – credit cards are worse than a payday loan. You can pay the interest on a purchase for 10 years or more before you ever touch the principal – which makes a payday loan a better option! Think about it, your credit card charges you a cash advance fee of 3% – that’s $15 on a $500 loan. Then your APR on cash advance is about 29.99%. That’s $149.95 for a year – same as a payday loan at term. But unlike a payday loan you can add other “charges” to your principal like clothes, food, etc., and you may never payoff the cash advance portion.

When you make payments to the credit card, they have the option of NOT putting any of that payment to the cash advance portion. What this means is the higher interest payment gets paid off LAST – which, unlike a payday loan, can keep you paying interest on that same purchase for years. Again, not so with a payday loan.

With a payday loan you have to pay if off. It doesn’t go on and on forever like a credit card [which used to be called rotating credit line]. A payday loan is a fixed term loan.

So if you have a very short-term need for money. You may want to consider a payday loan. Just remember to use your payday loan wisely and never become a payday loan addict.

Dave Budke worked in the finance industry and has dedicated his time to telling the truth about credit and debt. He suggests always steering clear of easy credit unless it’s a true emergency. To find a good payday lender click here

Loan Modification Hardship Letter Template and 5 Insider Tips

admin — Sun, 06 Jun 2010 21:30:25 +0000

A Loan Modification Hardship Letter is the most important first step in communicating with your employer. A well written hardship letter can make the difference between success and failure in your loan modification application

The letter is the chance to show your lender the circumstances that were out of your control that have forced you into a financially impossible situation.

It is important to remember that lenders get many applications and it is therefore important to be clear, concise and slightly unique in your writing.

5 Insider Tips

1. Describe the hardship without making excuses

2. Clearly state the steps you have taken to alleviate the hardship

3. Be short and concise

4. Emphasize your willingness to work together to resolve the situation

5. Describe the plan you have to get back on track

What Hardships do lenders accept?

a. Job Loss

b. Death to family member / mortgage payer

c. Divorce

d. Job Relocation

e. Increased monthly payments due to reset adjustable rate

Hardship Letter Template

Name of Bank/company

Address

Date

Loan Number:

To Whom It May Concern,

I am writing this letter to explain my unfortunate set of circumstances that have caused us to become delinquent on our mortgage. We would like to work with you to modify our loan. Our priority is to keep our home and I am certain making an adjustment to our loan as a result of our unfortunate circumstances will be mutually beneficial.

The reason we have fallen behind on our mortgage is (discuss your reason here, keep it short descriptive and void of excuses.) Faced with this situation we have taken these steps (list steps you have taken ie sold car, other luxury assets), however we are unable to meet the mortgage payment. We want nothing more than to pay the amount that we owe however at this time we need some help in doing so.

As a result of the steps we have taken our situation has got better because (reason here). As a result of our improved situation a loan modification would benefit us both. We are hoping to work together to decrease the delinquent amount, reduce the payment offer us the chance to keep our word to your company.

We look forward to working with you, please send all relevant information.

Sincerely,

Mr. & Mrs. ___________________

Signature_____________________

Loan # ______________________

Address______________________

Phone________________________

To learn more about the home mortgage loan modification process and receive additional loan modification templates tailored to homeowners unique situations, please visit Loan Modification Hardship Letter Templates

Home Loan Modification Myths – Modifying Loans Under Obama’s ‘Making Homes Affordable Plan’

admin — Sun, 06 Jun 2010 09:15:33 +0000

Home loan modification has recently become a hot topic in many American households. Though it was always possible to renegotiate the terms of a loan and have them adjusted by your lender, the process wasn’t commonly performed until the recent mortgage meltdown. Though modifications are becoming a lot more common now, there are still a lot of home loan modification myths surrounding the subject.

With the passage of the President’s new Making Home Affordable (MHA) plan, lenders now have a consistent set of steps to follow in the case of home loan modification. From March 4, 2009 until December 31, 2012 homeowners will be able to use the $75 billion Homeowner Stability Initiative to obtain home loan modifications.

Participating lenders are paid out monetary incentives for adjusting your loan, and those incentives often make a modified loan much more profitable than foreclosure or other alternatives. In this way, the MHA plan works to get 4 to 5 million Americans out of financial trouble and save their homes.

Surprisingly, though, there are a lot of misunderstandings and myths about the MHA plan. Many people mistakenly believe that the government is forcing lenders to participate in the plan. That is completely untrue. The MHA plan provides a consistent set of procedures for modifying loans and provides lenders with incentives to arrive at workable modifications, but it does not coerce lenders to do so.

The lender is advised to calculate whether the modified loan would be more profitable than foreclosure, and then to choose the more profitable option. The thing is, foreclosure is an awfully expensive, time-consuming, unprofitable affair for lenders anyway. Combined with the incentive payments provided under the MHA plan, lenders almost always decide that modification is a better alternative to foreclosure.

A second big misconception is that the Homeowner Stability Initiative money will be aiding speculators and house flippers. That is also completely untrue. To take advantage of loan modification under the MHA act, you must be the owner and the occupant of the home in question. Your home address is determined by a credit check. No vacant or condemned homes are allowed to participate in MHA loan modifications. Second homes and investment properties are also ineligible.

Of course there will be lots of home loan modification myths out there during this period of financial turmoil. The new MHA plan is new, and people are still learning how it works. Just get educated and make sure to get the facts about loan modification under the MHA plan.

For additional information about home loan modifications, please visit the #1 loan modification resource on the net: http://Home-Loan-Modifications.info

Understanding Mortgage Accelerator Loan Program

admin — Sat, 05 Jun 2010 21:00:59 +0000

Mortgage accelerator loan program is a unique loan clearance program that has been introduced in the U.S. recently. Based on the concept of home equity borrowing, mortgage accelerator loans have been in vogue for several years in the U.K. and Australia.

Mortgage accelerator loan program works on a very simple concept. Here, the borrowers, who have taken credit on their existing property, are required to deposit their monthly paychecks into their credit account. All the monthly expenses, excluding their monthly mortgage payments can be withdrawn from the account through lines of credit. The remaining unspent amount gets deposited against the credit resulting in a lower mortgage balance. One of the advantages of this program is that it saves the interest that needs to be deposited with the principal. As a result, the time taken to pay off the loan is shortened or in other terms accelerated.

However, the monthly mortgage payments during the initial 10 year in a mortgage accelerator loan are interest only payments, making it possible to the borrowers to become financially stable. Later, the borrower is required to make payments towards the principal. Even the line of credit decreases by 1/240 every month till the remaining loan term.

This program is ideal for borrowers who are not financially disciplined. If the borrower does not spend the money by drawing against line of credit, it can be used to pay off the house. Apart from this, an additional benefit that mortgage accelerator offers to borrower is instant cash through line of credit during any financial emergency. This gives the homeowner confidence to become aggressive in paying off his loan and still having ready cash available during the times of emergency.

Check Out More Articles:

Las Vegas Real Estate Agents for Buyers, Va Guaranteed Home Loan, How much to budget for home maintenance and repairs to increase home value?

Construction Loan Calculators

admin — Sat, 05 Jun 2010 08:45:45 +0000

Although construction loan calculations are only an approximation of the real expenses that the borrower will have to face, they are a very handy tool when it comes to getting an exact idea about the expected construction cost.

Simple construction loan calculators receive a few fields as input and then output the expected monthly payment that the borrower will have to pay to the lender. The input fields are described below.

The construction loan amount is your best estimation of the amount that you believe you will need in order to complete the construction plan. This is an approximate sum of all the costs that you will have to pay during the period of the construction. It serves as a good estimation for the overall development cost. The overall development cost is usually the amount of money that the borrower applies for.

The interest rate is the rate that you agree to pay to your lender. Interest rates differ among various financial institutions. Additionally, compared to other types of loans, construction loans tend to have higher (worse) interest rates. This is because of the nature of the investment; the lender assumes a high-failure risk and thus, the interest rate increases.

The months of construction field is to be filled with the expected number of months that will pass during the construction phase. Please note that theory is something completely different from practice. Theory assumes no (or minimal) obstacles during the construction phase; however, in practice, the procedure of construction is delayed many times due to unexpected problems.

Some calculators support an Average Outstanding Balance field. This field depends on the financial institution and is typically around 60%.

Finally, the construction interest calculator will give you the expected monthly payment; this is what the borrower is due to pay the lender every month.

Construction Loans provides detailed information on Affordable Construction Loans, Bad Credit Construction Loans, Church Construction Loans, Commercial Construction Loans and more. Construction Loans is affiliated with Commercial Mortgage Loans.

Self Certification Loan

admin — Fri, 04 Jun 2010 20:30:27 +0000

The recent problems within the secure loan market have been pronounced within the self certification market, more than any other. A self certification loan is a loan whereby the applicant self certifies their income.The self employed and applicants who are employed but also earn income from outside their paid employment are typical people who self declare their income.

The lenders available within the self cert market are dwindling, and criteria changes have made the process much more difficult. The problem arises because of risk. All lenders want to ensure, as much as possible, is that they will get paid their money back with interest. They all expect a level of default, whereby someone doesn’t pay, but the process of risk management tailors the lenders offering and rates. The better the rate the higher the criteria and less chance of default.

The problem with self certification is that they are relying on the applicant to be realistic about their earnings, unlike a wageslip, which can be seen and verified, a self declaration form cannot be verified.Some lenders try to get round this by asking for proof of earnings, such as accounts, accountants references etc.However, previous year profits do not always relate to current earnings.

The system fails when an individual self declares income that is inflated , simply to obtain the loan they are looking for. When it comes to self declaration, it should be validated whenever possible to ensure the applicants are not over committing themselves and putting themselves in a worse situation financially

Alan Reed, is a Business Owner and writes for several websites including [http://www.chrysalisfinance.co.uk/Self_Certification_Loan.htm], [http://www.e-securedloans4you.co.uk] and [http://www.completehomeservices.co.uk]

401k Loan

admin — Fri, 04 Jun 2010 08:16:16 +0000

Your Personal Economic Stimulus

401k Loans Relieve Financial Distress

The Internal Revenue Code allows more flexibility and latitude about 401k loans than your employer’s plan rules probably will grant. The law does not restrict 401k loans, but it also does not require your employer to offer them. Although most major corporations do provide 401k loans for employees experiencing temporary financial difficulties, they must comply with strict guidelines about how to manage them. When your employer sets-out your 401k loan’s terms and conditions, saying “my hands are tied,” he means it.

Do not get confused by a tricky distinction in the law: The Internal Revenue Code mandates how your employer must set-up and pay-out your loan; it sets limits on how much you can borrow; and it establishes the timeline and requirements for repayment. The Internal Revenue Code also establishes the consequences for default. But the law says nothing about why employees do or do not qualify for 401k loans.

Your employer maintains complete discretion over conditions, circumstances, and restrictions on 401k loans. And if you work for a relatively small company, your employer simply may not offer 401k loans because they add too much to his administrative costs. The majority of large corporations will allow 401k loans when (1) employees pay college costs for their children, their spouses, or their children; or (2) the 401k loan will prevent eviction from or foreclosure on their homes; (3) the money pays reimbursed medical costs-co-pays or the cost of procedures insurance does not cover; or (4) the loan goes toward the first-time purchase of a home.

Internal Revenue agents and 401k specialists advise your employer on limits and guidelines for 401k loans: Because they pay administrative costs for managing your loan, most employers set a minimum loan amount-typically $1000. They also set the ceilings on 401k loans-typically 50% of your vested amount. If you’re married, your employer may require your spouse’s consent to the loan. Especially in “community property” states where your spouse could be saddled with the debt in the case of separation and divorce, he or she has a right to full disclosure and informed consent. Your employer probably then will stipulate that your loan payments must be deducted from your paycheck; although the stipulation seems to protect him against default, it actually does more to protect you.

Naturally, because you are, in effect, borrowing money from yourself, the loan requires no credit check, and most details about 401k loans are not forwarded to credit reporting agencies. You do, however, have to pay interest. The interest payments actually make up for lost earnings on your principal, so that they work to your long-term benefit. The interest rates almost always remain extremely low-usually the Federal Reserve’s Prime Rate plus 1%, which definitely qualifies as a “preferred rate.”

As with all major financial decisions, you should not take out a 401k loan in haste and without professional advice. At work, talk to your 401k Plan Administrator, and then talk to your tax person or your financial planner.

For more 401k Information, visit http://401k-expert.com

Loan Modification Help – Will You Get a 1099?

admin — Thu, 03 Jun 2010 20:00:31 +0000

A loan modification that includes a reduction in the principle balance has some troubled homeowners worried about the tax consequences. Many mortgage loan modifications are featuring a reduction in the amount owed to more accurately reflect the homes current market value. Since many areas of the country have experienced severe value declines, this amount can be substantial. A loan modification can save a distressed homeowner thousands of dollars and prevent foreclosure, but what about the tax liability? Read on …

The Mortgage Forgiveness Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principle residence. Debt reduced through mortgage restructuring-loan modification-as well as mortgage debt forgiven in connection with a foreclosure, qualify for this relief.

This provision applies to debt forgiven in 2007,2008 or 2009. Up to $2 million dollars of forgiven debt is eligible for this exclusion – $1 million if filing separately. The exclusion does not apply if the discharge of mortgage debt is due to services performed for the lender or any other reason not directly related to a decline in the home’s value or the taxpayers financial condition. The amount of mortgage debt excluded will reduce the taxpayers cost basis in the home. For more detailed information, please consult the IRS website.

If you are struggling with high mortgage payments and unable to refinance or sell your home, a loan modification is an option you should consider. You lender may be willing to workout new loan terms that will lower your interest rate, lengthen the term and even reduce the principle balance to arrive at an affordable and sustainable loan payment. The Federal Government is strongly encouraging lenders to reach out to distressed borrowers to offer them a loan modification before initiating any foreclosure action. Secretary Paulson has mentioned even mandating that lenders offer systematic and streamlined loan modifications to homeowners as part of the Bailout billions. It seems that finally the government is willing to step in and force lenders to offer homeowners the help they need to stop the avalanche of foreclosures across the country.

Many of the new programs have built in timelines, so you should start learning right away about your loan modification options. You don’t want to miss out on the billions of dollars in homeowner aid. You might have been given a loan you did not understand or could not afford, but do not be afraid to contact your lender now to get the help you need. Take the time to learn about your lender’s loan modification guidelines, so you will be able to prepare an acceptable application. It is not really hard for an informed homeowner to get the loan modification help they need from their lender-with just a little knowledge and preparation you can get the help you need to save your home. An informed homeowner is hard to take advantage of again!

You can get the help you need to understand the mortgage loan modification process by ordering and downloading The Complete Loan Modification Guide. This is a low cost, easy to read handbook that will provide you with everything you need to prepare a professional and acceptable loan modification application. You are provided with all of the necessary forms and given detailed directions on how to complete them properly. The Complete Loan Modification Guide will take you step by step through calculating your debt ratio, completing the financial statements, writing your hardship letter and then putting it all together to submit to your lender. Get started today on the path to secure home ownership, order and download The Complete Loan Modification Guide.

For more information about mortgage loan modification, please visit us at: http://www.myloanmodificationcenter.com

Should You Refinance Home Loan Today?

admin — Thu, 03 Jun 2010 07:45:22 +0000

You got your home through a loan a couple of years back. It seemed like the best thing to do since you have a growing family and you needed to put a roof over their heads. Times have changed and you are in different circumstances now than you were before. A question rises to your mind and you ask yourself the question, “should I refinance home loan today?”

There are a couple of things that you should consider before going through with it. Perhaps the first and most important would be the reasons you should get a refinance. Listing them down in a piece of paper should help you see the problems, situations, and also the advantages that would make you even think of getting a refinance.

Lower Monthly Payments

The first entry on your list or anybody’s list would be to lower monthly payments. Everybody would love to have that. So how can you, if it is possible, lower monthly payments by getting a refinance home loan? The answer would be by getting lower interest rates.

Back when you first got your loan, the interest rates may have been high, but you took it, anyway. Now, the interest rates have gone down significantly, making you wonder if it’s low enough for you to save on a refinance.

As a rule of thumb, you should only refinance when the interest rate is lower than 2% of your current ones. Together with other factors such as staying in your home for then next couple of years, you should be able to lower your monthly payments and save from a refinance home loan.

From ARM to Fixed Rate Mortgage

You may have taken an adjustable rate mortgage (ARM) back then. It is quite tempting over the fixed rate mortgage since the monthly payments for this is usually lower at the beginning of the loan. But as it matures, your payments would also gradually increase, depending on the current interest rates.

You may have never had a stable monthly payment where you were able to predict what the numbers would be even before you opened the envelope. It was bearable back then, but now you may not be able to cope with your bills that seem to rise and fall according to it’s whims.

With a refinance home loan, you will be able to switch to a fixed rate mortgage, making sure that your monthly payments will stay the same from the start to end of the loan. This would prove to be an your advantage, especially if you are on a tight budget.

From Fixed Rate Mortgage To ARM

There are also situations wherein you first applied for a fixed rate mortgage and now you want to switch to an ARM. People would think this an odd move, but what they don’t know is that it can work to your advantage.

Say you are planning to stay in your house for a few more years. You can save from your loan payments by switching to ARM. This would only help you for the short-term, so better be sure that you will only be staying in your house for a year or two.

Make sure that you also get an option of “no out-of-pocket costs” ARM. You will be having a slightly higher interests rate but with no closing costs, making you reach your goal of saving on your monthly payments now.

Study The List

Once you have made your list of advantages and disadvantages of getting a refinance, study them. If the longer list belongs to the side of the advantages, then you should go ahead and get a refinance. If it isn’t, then you should leave your mortgage be, for now.

There are many reasons to get a refinance home loan. When everything has been laid out before you, it is still your decision if you should go through with it. Just remember that, whichever way you go, you have to make sure that it is for the best.

Thinking of a refinance home loan. Whether it’s a Florida refinance or Colorado refinance you require, visit WhatAboutLoans.com today for more information.