Home Refinance: Why You Want to Refinance Your Mortgage

Home Refinance: Why You Want to Refinance Your Mortgage

You may want to refinance your home for several reasons. The biggest reason that people refinance their homes is to save money.

If you qualify for a lower rate you could lock in that lower mortgage rate and stretch out the payments so that every month you are paying less to live in your home than before. Once you decide to refinance your home, you will undoubtedly be confronted with a variety of choices as to what sort of new loan you can get.

One tactic people use is to shop the rate around to several banks to see what the best deal is for them. Refinancing your mortgage can certainly free up a lot of capital but you have to be careful. Some unscrupulous lenders may advertise a lower rate, but once you work out the math the lender may have added so many points and fees to your refinancing that you are actually paying more than some of the other advertised rates.

When you refinance your mortgage, you may be able to substantially reduce your monthly payments, especially when we are in a low interest rate environment like we are today. You may have bought your home in times of relatively high mortgage rates and therefore are locked into higher payments than you should be. These days, mortgage rates have been hovering around 6% and lower for a while. If you want to refinance your home and cut your monthly payment, now may be the best time to do it. Mortgage rates rarely stay the same for long time periods

Refinancing Your Home to Free Up Money for Other Purposes Many people who are deeply in credit card debt or who have recently filed for bankruptcy may want to refinance their homes in order to free up some of their home equity and pay off their other debts. This can be a good strategy if the other debts are high interest rate debts. It's not too hard to figure out that paying off debts that are charging you 20% per year with debt that is only costing you 6% a year might be a good deal.

People who refinance their homes often come out better than before, but as usual it pays to shop around. Find the best deal your can for your mortgage and your may be able to have a lot of spare money every month.
About the Author

Richard Martin is a contributing writer at LegalClips.com. LegalClips.com has Vioxx and injury lawyer articles. This article may not be altered and links must be kept live.

Written by: Richard Martin

Finance Jobs - Finance Career

Finance Jobs - Finance Career

Many people are drawn to money. Not just to have more of it (who doesn't?), but to actually participate in the finance industry and make a career out of it.

Did you know that some of the most successful people in finance and investments never pursued finance in college? Did you know many never even went to college? There are people who have built successful careers in investments or the financial industry grew and learned on the job.

Like I said, there are many branches to this tree. Accountants, CPA's, and analysts must go through significant educational requirements before finding finance jobs. While these careers are built on heavy education and commitment, there are other areas of finance that do not require stringent or specialized education before entering the job market.

Stockbroker and Financial Advisor jobs

Stockbrokers, Registered Representatives and financial advisors are basically salesmen in the finance industry. That is not to demean what they do, it's actually true. Once you are a licensed stockbroker and working for a firm, you are a phone broker. Many of the top firms will require 2 or 4 year degrees before hiring you for a job, but a finance or investment related degree is usually not required. Many smaller firms do not require college at all. They are looking for brokers with talent, drive and the ability to communicate and persuade. If you can convince the firm that you can earn money, you can get in. There are successful stockbrokers and advisors who make $200,000 or more and many of them were car salesmen, insurance agents, collections salesmen, real estate agents etc. Training is ongoing and most should decide after 6 months or one year whether this is the finance career or job they want.

The downside to this career, is the compensation you earn. It is largely, if not exclusively - commission or fee based. It's a sink or swim finance career. It is not for everyone, but the requirements are easier, so if you are good at it - you're all set!

Mortgage Broker Career

When Wall Street began losing jobs in late 2000 and for several years after, many brokers and advisors began careers as mortgage processors or mortgage brokers. The mortgage finance industry was booming. With interest rates low and the economy slower, homeowners were looking to take advantage of the equity in their homes or looking to refinance. People who were in these jobs at mortgage companies made a lot of money. People had needs and the environment was ripe for big business.

The problem with mortgage finance jobs is that it is a very cyclical business and it relies on constant new business and referrals for the brokers to earn money. If I had my choice overall, getting a job in the mortgage broker business would be one of my last choices. Good times are real good. Bad times are real bad.

Insurance Jobs and Retirement Finance Careers

With the population of the country living longer and the trend of big companies providing attractive retirement plans on the decline, insurance agents, retirement and estate planners are doing well. Building a finance career and getting jobs in these areas can be very rewarding and the trends are on your side.

There are many areas of finance and investments. You may end up being a bond broker, a trader, a mutual fund broker or something else. The quickest way into a good investment or finance job or career is to get a job as a financial advisor or broker. You have to put in the time and effort, but the openings are there and the experience you gain working with client investments will serve you very well going forward. Either you make a great career doing just that, or you platform that job into another area that better suits you.

The finance industry can be tough, it is competitive and you must stand out, but it's better than digging ditches - usually!

Good Luck!

About the Author

Nick Hunter is the President of American Investment Training (AIT) http://www.aitraining.com and the owner of http://www.brokerjobs.com - a finance career information site with job links and educational resources.

Written by: Nick Hunter

Business Finance Expert Series: "What Every Business Owner Needs to Know About Factoring"

Business Finance Expert Series: "What Every Business Owner Needs to Know About Factoring"

Factoring is a promising way to stimulate the cash flow of a company. Its growing popularity can be gauged from the statistics that factor finance approximately amount to $70 billion in United States each year. In United Kingdom it represented a total volume of £104.4 billion in 2002.

However, before leaping on the factoring (http:// www.hjventures.com/factoring/factoring.html ) bandwagon it is important for the business owner to know what makes a business suitable for factoring?

- Before making any decision the owner should have a list of his customers and they should be in sufficient number

- No customer should contribute over third of the turnover

- Customers are needed to accept the standard payment terms of the industry.

- Period of credit given to the customers should be reasonable



Following factors make a business unsuitable for factoring:

- When there are too many small invoices ( http://www.hjventures.com/factoring/invoice-finance.html )

- Factoring is unsuitable when it is sold to the public. It is only available for sales to commercial customers

- There is a provision for the customers to make part payments

- When there are many disputes and queries

- The business is not reliable, credible and sound in its operations



It is very important for the business owners to have a good understanding of these factors as they will be sharing important financial information of their business and will be in direct contact with the customers too. Earlier factoring was not widely used due to the ignorance of business owners regarding the benefits factoring could bring in to the company. Thus it is important for every business owner to be aware of benefits of factoring before using it in their business.



Learn more about factoring / business finance : http://www.hjventures.com/factoring/factoring-glossary.html

About the author:

Howard Schwartz is a partner in several business strategy groups, including HJ Ventures International, Inc. Howard has worked with hundreds of entrepreneurs worldwide with a focus on writing Business Plans for companies interested in raising capital from Venture Funds.For more information: http://www.hjventures.com/factoring/factoring-glossary.html

Written by: Howard Schwart

Bridging Finance Basics

Bridging Finance Basics

Bridging finance is a short-term loan that is used as a way to provide funding for the purchase of a new property while the borrower awaits the sale of an existing property. Unless all the stars are in perfect alignment, it’s tricky to coordinate the sale of one property and the purchase of another property so that the transactions occur simultaneously.

Bridging finance or a “bridge loan” as it is more commonly referred to, makes such transactions possible. They keep the borrower from ending up in a dire financial situation as can happen when forced to pay two mortgages at the same time. Bridge loans can be used either for business or for personal reasons.

Primarily short term in nature, the process for obtaining a bridge loan is similar to that of most types of loans. Most importantly, it’s advisable to work with a lender that has experience with this type of loan. Also, since the need for a bridge loan often arises with little advance notice, being pre-approved for such a loan is a good idea.

Bridge loans typically are structured as interest only loans meaning that the borrower pays only the interest on the loan each month. The borrower continues with this repayment plan until the property the loan is being used for is sold. When the sale finally does occur, the proceeds of that sale are used to repay the principal. The principal payment typically is in the form of a one-time, lump-sum payment.

The lender does not need to worry too much about default because the borrower is required to put up collateral to secure the loan. This can be in the form of another piece of property, business machinery or inventory on hand. But rest assured the lender will still thoroughly review the credit history of the applicant, the business and any partners or others with an ownership interest to assess the level of risk it is undertaking.

The interest rate assigned to the bridge loan is based on several factors: the anticipated risk associated with the bridge loan, the prevailing interest rates and a premium added by the lender. Since bridge loans are short-term, generally not longer than two years, the lender has only a short time to make money on the deal. The profit is derived from the interest rate.

Expect to pay a higher rate of interest for a bridge loan. And remember, the monthly payments on a bridge loan generally will be for interest only. Expect to pay off the bridge loan in full, usually as a one time balloon payment, as soon as the property is sold.

In the event that the property is not sold before the bridge loan matures, it can usually be converted to a conventional loan without paying a penalty. But it’s always a good idea to double check this before assuming.

About the Author

Specialists in Commercial Bridging Finance Commercial Lifeline. Independent UK based Commercial Bridging
Finance brokers.

Feel free to reprint and distribute this article as you like. All that we ask is that you do not make any changes, that this resource text is include, and that the link above is intact.


Written by: Darren Yates

Adverse debt levels blight UK consumers personal finances

Adverse debt levels blight UK consumers personal finances

Debt levels are at an all time high in the UK. The younger generation tend to be feeling the pinch the most, but parents are increasingly being required to bail them out, often at great expense to their own limited mortgage or retirement savings.

It has become almost accepted as a fact of life that graduates will begin their careers with a considerable level of personal debt. The Association of Investment Trust Companies found that on average students expected to graduate with £7,208 of debt, while parents believed it would be nearer to £9,741, however the real average was found to be currently running at £13,501. Graduates then need to service credit cards, take out a mortgage, then cover the payments, repay university loans, not to mention the pressure to start saving earlier, and save more, for their retirement, whilst the basic state pension increasingly becomes inadequate. The government revealed in June that student debt for 2003-04 was seven times higher than they were in 1994-95 and the Student Loans Company has shown that debts owed to them has risen to more than £13bn.

It is not only students who face financial difficulties early in life. Consumer Credit Counselling Services - Scotland, has indicated that young adults in general, under the age of 25, now account for more than 10 per cent of the estimated 32,000 people who have fallen into severe arrears on non-mortgage debts of more than £1 billion.

Malcolm Hurlston, Chairman of the Consumer Credit Counselling Services (CCCS) said, "It is noticeable that young people are accounting for an increasing proportion and the number of them seeking assistance has risen by about 25 per cent over the past two years or so."

Analysts have been bracing themselves for news of a sharp increase in adverse debt levels from the major high street banks following report figures of a 21 per cent increase in bad debts levels at Lloyds TSB. City analysts expect HBOS and Royal Bank of Scotland to declare that bad debt charges have risen by around 20% in their personal banking businesses, and Barclays, HSBC and Alliance & Leicester are all expected to tell a similar tale of rising loan defaults. Citigroup analysts are expecting bad debt charges from its retail banking division to rise about 24% in the first half of this year to £230m, while last year HBOS’s provisions for bad debt rose from £1bn to £1.2bn.

Keith Stevens, of the chartered accountants firm Wilkins Kennedy, said: "Creditors profit by lending money to people and collecting interest, and the longer they can keep that cycle going the better for them. Unless borrowers own property of significant value, it’s often not in creditors’ interest to call in their debts." He also continued that he believed some creditors were increasingly taking a hands-off approach, allowing debtors to pile up large amounts of debt, and then collecting interest and penalty charges for as long as borrowers were able to continue paying. This has lead to an increase in the number of borrowers filing for bankruptcy themselves when previously they would have been forced into it earlier by their lenders.

House repossessions have also significantly increased over the past year, with the Council of Mortgage Lenders announcing 4,640 home repossessions during the first half of 2005, compared with 3,070 for the last half of 2004. Government figures show that there has also been an increase in the number of homeowners being taken to court for mortgage arrears.

Some of the major banks and financial service providers have taken the initiative and started to help police the growing adverse debt problems with HSBC announcing that it will share their full credit record, of both positive and negative information, on its personal customers with other regulated financial services companies through the Experian, Equifax and CallCredit credit reference agencies, in efforts to keep tabs on its consumers' debt.

Michael Geoghegan, Chief Executive of HSBC said: "It is no more in the interests of a customer to borrow more money than they can afford than it is for a bank to lend them the money." The move has been widely heralded by analysts, as Michael Geoghegan added, "It is the only way to ensure that lenders properly understand the full financial exposure of customers before they let them sign up to debt that some simply can't afford."

This all comes amidst media pressure for financial firms to become more responsible. One case widely featured in the news concerns a couple who took out the £5,740 loan at 34.9% APR for house improvements, but they were already in arrears on two prior mortgages, and became unable to keep up the loan repayments. Over the course of the 15 year loan term the amount repayable had escalated to £384,000. Attempts by the loan company to still enforce the huge debt, eventually had to be fought off by the couple through the law courts.

The couple urged others considering taking out a loan to seek advice and to, "obviously read the small print and ask the questions that perhaps you don't think about at the time, and just make sure you know exactly what the consequences are should anything go wrong".

There are currently many sources of information to help consumers make decisions regarding their finances and debt levels. Financial comparison sites like Moneynet can provide impartial information on loans, mortgages, adverse credit, etc, to find the best product for individual circumstances. Consumer help sites like the National Debtline provide free confidential and independent advice on how to deal with debt problems, and the Citizens Advice Bureau are there with trained volunteers to help with legal, monetary and other problems, through a free, independent and confidential advice service.

The more help and information that is available to consumers and the more responsible the lending agencies become, the safer finance will be for the most vulnerable who are looking to borrow money, to prevent them getting into un-repayable levels of debt, however these services can only be of help if people actually use them.

Malcolm Hurlston of CCCS said, "We are advising about 4,000 people in Scotland and I would estimate that our figures represent only about one in eight of those who need help".

Financial education is something needs to be provided at an early stage to make people realise the importance of taking on the accountability for their own finances, as well as highlighting where to access help for when it is required. Budgeting is a subject many school leavers have little practical knowledge of, but one which they desperately need to be made aware of before they start to control their own finances.

Where there is existing advice or help, this must be made available and known to all in order to prevent more people getting too deeply into debt, or falling prey to loan sharks like the recent case of Mark Washington Johnson who has been jailed in Birmingham for nearly four years. Mr Johnson was found guilty of charging up to 8,000 per cent interest on loans, taking Social Security benefit books or National Insurance numbers as "security" for the unauthorised loans and then piling on default charges for missed payments. If we are to prevent this sort of abuse occurring to the weakest members of society then public awareness needs to be raised and the most vulnerable people given the assistance best suited to understand and control their own money.

About the Author

Richard lives in Edinburgh working for bigmouthmedia, occasionally writing for the personal finance blog Cashzilla, and considering the possibility of there being intelligent life on Earth.

Written by: Richard Green

Getting Your Finances Ready for your SSD case II

Getting Your Finances Ready for your SSD case II

Why is it important to anticipate financial hardships? This is because it is arduous to live for two and a half years, sometimes more, with no income and means of support. It can happen that before a judge get to decide the case, claimants do not have penny left. Another reason is to allow claimants to plan and minimize or avoid financial loss.

Planning ahead financially is a crucial step that you should take in pursuing a Social Security Disability case. A claimant has no idea up to when the claim will last. An Initial claim may develop into a series of reconsideration or appeal and it will take a longer time so he better prepare his finances to avoid being left broke or homeless due to foreclosure or eviction order.

To avoid insolvency or financial drain in the process of your claim, you should avoid incurring additional debts and obligations. These may accumulate interest and may add to your financial burdens. Try to look also for some ways to minimize your obligations and financial burdens. In some instances specified by the law, claimants are allowed to work to sustain your expenses. You may also consider restructuring your debts and obligations to make surviving the disability process more likely. You can consider these choices at any level of your social security disability case.

A sad but very common scenario is where a claimant, after several months have passed, gets a denial letter. Then he filed an appeal and wait a little more. Once a gain, he received a denial letter though it stated that an appeal may be filed and this time it involves a hearing before an administrative law judge. The hearing was then set. Unfortunately it doesn’t end there. After the hearing, a number of weeks or even months shall be waited before a decision is promulgated. And even if the approval was granted many weeks more before benefits are made available. Availability depends also if the system in a particular state of residence, is clogged or not. It may take up to two and a half years before disability benefits are ever received.

Most of the claimants are shocked to know the lengthy process of a claim. Unfortunately, only a few know this blatant reality. Claimants only realize this when their finances are already at minimum or worse. Too late though, but the only bright spot is that the amount they received in due benefits can cure their situation.

About the Author

For questions, comments and additional info about the articles visit http://www.socialsecuritylawattorney.com


Written by: Maricon Williams