FHA Interest Rates and Comparing Loans

The cost of an FHA mortgage has dropped dramatically in the past year or two. While the guidelines are constantly changing, the cost of an FHA loan remains a combination of the interest rate, the up-front mortgage insurance premium (UFMIP) and the monthly mortgage insurance premium (MIP). The easiest way to look at this is that the UFMIP is spread out over how long you are in the home and that the interest rate and MIP are added to give you a rough idea of what the effective mortgage rate is.

FHA loans are more lenient on credit scores than many conventional loans and the related private mortgage insurance. It makes sense to compare the loans in an FHA vs. Conventional Calculator to get a better estimate. Very often, the lower MIP will add up over time, but there is the UFMIP of 1% that generally makes the FHA loan more expensive in the first year or two. It is worth looking at the loan comparison over time, something that you can easily see in the graphs section in the calculator.

There is no best loan for all home buyers, but comparing the loans generally makes a lot of sense. As always, get a current FHA interest rate and run your own comparisons. FHA loans have some incredible value for some people, for others, a conventional loan can be a better option.

Tips To Help You Manage Your Credit Cards Wisely

Credit cards offer many benefits to the user, provided they practice smart spending habits! Too often, consumers find themselves in financial trouble after inappropriate credit card use. If only we had that great advice before they were issued to us! The following article will offer you that advice, and more.

 

A retail card should only be opened if you really use that store often. When a store runs a credit check to see if you qualify for a card, it shows up on your credit report, even if you ultimately decide not to open an account. Too many inquiries can make your credit score go down.

 

Shop around for a card. Interest rates and terms can vary widely. There are also various types of cards. There are secured cards, cards that double as telephone calling cards, cards that let you either charge and pay later or they take out that charge from your account, and cards used only for charging catalog merchandise. Carefully look at the offers and know what you need.

 

Before signing up for any credit card, make sure that you comprehend the terms and conditions fully. You could discover the interest rate, fees, and payment schedule are a lot more than you anticipated them to be. Make sure you fully understand things like the interest rate, the late payment fees and any annual charges the card carries.

 

Take the time to play around with numbers. Before you go out and put a pair of fifty dollar shoes on your credit card, sit with a calculator and figure out the interest costs. It may make you second-think the idea of buying those shoes that you think you need.

 

You must make a habit of paying credit card bills in a timely fashion. Credit card balances all have a due date and if you ignore it, you run the risk of being charged some hefty fees. You also run the risk of being charged a higher interest rate on any purchases, which reduces your overall buying power.

 

Keep an eye on mailings from your credit card company. While some might be junk mail offering to sell you additional services, or products, some mail is important. Credit card companies must send a mailing, if they are changing the terms on your credit card. Sometimes a change in terms can cost you money. Make sure to read mailings carefully, so you always understand the terms that are governing your credit card use.

 

As you can see, a few steps can be taken to ensure that you are correctly using your credit cards. Don’t let them scare you off because they seem too complicated or expensive. You will find that with the proper research that credit cards can be helpful to use when you are in various situations.

 

To get free legal advice on credit and other financial matters, simply visit CCLSWA by clicking on the link provided.

The Benefits of a Secured Loan

A secured homeowner loan is, as its name implies, a loan secured against your property. Secured homeowner loans require no upfront survey, legal or other fees. The loan can be used for many purposes, including paying off outstanding loans or credit cards and reducing your monthly repayments. Also, the loan can be used for home improvements, a new car, a wedding, a holiday or to inject cash into your business.

There are a number of specialist lenders willing to advance finance secured by way of a second charge against the your property over a term of between 5 and 25 years. In general terms, the maximum combined loan-to-value (LTV) of the existing mortgage, plus the proposed additional secured loan, should not exceed 90%. In fact, some lenders will restrict the maximum LTV to 80% if for business use.

As the finance lender would be second in the queue for security, this involves a slightly higher risk which means that a higher interest rate would be levied, the interest rate depending upon the applicant’s credit history. Although secured homeowner loans might be more expensive in terms of the interest charged in some cases, the following advantages may apply.

 

  • A secured loan may usually be raised much faster than finance via a remortgage. Whereas it might typically take three weeks to arrange finance via a secured loan, it usually takes at least six weeks to remortgage.
  • The applicant may be tied to a mortgage lender offering a low interest rate for say 3 or 5 years, which might involve early redemption charges if the mortgage is redeemed early. In utilising a secured loan, the mortgage can remain in place to avoid this charge.
  • Whilst the applicant may have a 25 year mortgage, they may not want to extend his business finance for such a long term, which would be the case if they remortgaged.
  • Finance raised via remortgaging cannot be offset against the future profits of a business for tax purposes. However, a separate secured loan can be clearly identified as being for business use and offset against tax accordingly.
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    When considering applying for a secured homeowner loan, it is wide to consult with a professional loan broker who will search the market and source the best secured loan for you from a wide panel of lenders.