.
Involuntary unemployment insurance is similar to credit disability insurance. It covers the minimum amount of your credit account payments for six to 12 months after you lose your job.
Coverage usually costs 70 cents for every $100 on the credit balance. But the policy only covers the minimum payment due, so interest adds up. You will probably wind up owing more money than you did when you had a job.
If you want peace of mind, your best bet is to put enough money for three to six months of living expenses into an emergency savings account.
All the best,
Timben
Thursday, December 31, 2009
Wednesday, December 30, 2009
Loans and mortgages – Pass on expensive loan insurance
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Insurance is for people, not for loans. Just say “no” to anyone who offers you Credit Disability Insurance.
An individual Credit Disability Insurance policy covers your monthly loan payment if you ever become disable and can’t make the payment yourself. Typically, the policy pays the minimum amount due up to 36 months.
With costs near $21 for every $1,000 of coverage, these policies are not worth the expense. If you already have some type of disability insurance, make sure it covers loan payment along with the rest of your expenses.
All the best,
Timben
Insurance is for people, not for loans. Just say “no” to anyone who offers you Credit Disability Insurance.
An individual Credit Disability Insurance policy covers your monthly loan payment if you ever become disable and can’t make the payment yourself. Typically, the policy pays the minimum amount due up to 36 months.
With costs near $21 for every $1,000 of coverage, these policies are not worth the expense. If you already have some type of disability insurance, make sure it covers loan payment along with the rest of your expenses.
All the best,
Timben
Tuesday, December 29, 2009
Loans and mortgages – Smart way to slash your car payment
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Refinancing isn’t just for homeowners anymore. You might never have thought about it, but refinancing your auto loan could slash your monthly payment.
You should consider refinancing if interest rates have gone down since you bought the car. It’s also a smart option if your credit rating has gone up because you’ll be eligible for a lower rate.
Applying online can get you through the process in just 10 minutes. Visit a site like www.eloan.com that offers auto refinancing options. Also try www.capitaloneautofinance.com, where your can look at available rates and calculate what your new monthly payment might be.
To compare the rates of lenders in your area, visit www.bankrate.com. They will give you contact information and tell you whether each lender charges a fee.
Usually lenders do not charge fees to refinance your car loan, but you will have to pay to have your title transferred at the local Department of Motor Vehicles. The state charges anywhere from $5 to $65 transfer the lien. That’s little to pay, though, to save thousands of dollars over the life of your loan.
All the best,
Timben
Refinancing isn’t just for homeowners anymore. You might never have thought about it, but refinancing your auto loan could slash your monthly payment.
You should consider refinancing if interest rates have gone down since you bought the car. It’s also a smart option if your credit rating has gone up because you’ll be eligible for a lower rate.
Applying online can get you through the process in just 10 minutes. Visit a site like www.eloan.com that offers auto refinancing options. Also try www.capitaloneautofinance.com, where your can look at available rates and calculate what your new monthly payment might be.
To compare the rates of lenders in your area, visit www.bankrate.com. They will give you contact information and tell you whether each lender charges a fee.
Usually lenders do not charge fees to refinance your car loan, but you will have to pay to have your title transferred at the local Department of Motor Vehicles. The state charges anywhere from $5 to $65 transfer the lien. That’s little to pay, though, to save thousands of dollars over the life of your loan.
All the best,
Timben
Monday, December 28, 2009
Loans and mortgages – Stay ahead of the market
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Once out of every three people buying a house today will borrow money with an adjustable-rate mortgage (ARM). Interest rates for an ARM are usually lower than fixed-rate mortgages – at first. But there is no guarantee market rates won’t rise suddenly, and your mortgage payment will rise with them.
If the economy shows signs of inflation, go ahead and convert that ARM to a fixed rate before your monthly mortgage payments jump. It could save you money and save your house.
All the best,
Timben
Once out of every three people buying a house today will borrow money with an adjustable-rate mortgage (ARM). Interest rates for an ARM are usually lower than fixed-rate mortgages – at first. But there is no guarantee market rates won’t rise suddenly, and your mortgage payment will rise with them.
If the economy shows signs of inflation, go ahead and convert that ARM to a fixed rate before your monthly mortgage payments jump. It could save you money and save your house.
All the best,
Timben
Sunday, December 27, 2009
Loans and mortgages – Save steps and money
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Refinancing your mortgage can cut your interest charges, but what about cutting the cost of refinancing? If you’ve refinanced once or twice before, you can knock at least $400 off the closing costs using what is called, “streamlined refinancing.”
Streamlined refinancing means you skip some of the steps you had to take last time you refinanced. If it’s been two years or less since you refinanced, look into saving in these areas:
* Use the same attorney and lender. You will pay less in fees because they have already done the background work, and you will avoid state mortgage taxes.
* Ask you lender to use the appraisal plan from the last closing, and cut $200 off your closing costs.
* Use the plot plan from last time, and save another $150.
* Update your title insurance policy instead of writing a new one, and save from $400 to $1,000.
If you have a loan from the Federal Housing Administration (FHA) and you’re kept up with payments, you can take advantage of its streamlined refinancing package.
No face-to-face meeting is required, you pay no underwriting fees, and you don’t need an appraisal. You don’t even have to undergo credit check or income verification. This refinancing is available strictly to lower your monthly payments. It is ideal if your credit situation has improved since you first took out the loan.
All the best,
Timben
Refinancing your mortgage can cut your interest charges, but what about cutting the cost of refinancing? If you’ve refinanced once or twice before, you can knock at least $400 off the closing costs using what is called, “streamlined refinancing.”
Streamlined refinancing means you skip some of the steps you had to take last time you refinanced. If it’s been two years or less since you refinanced, look into saving in these areas:
* Use the same attorney and lender. You will pay less in fees because they have already done the background work, and you will avoid state mortgage taxes.
* Ask you lender to use the appraisal plan from the last closing, and cut $200 off your closing costs.
* Use the plot plan from last time, and save another $150.
* Update your title insurance policy instead of writing a new one, and save from $400 to $1,000.
If you have a loan from the Federal Housing Administration (FHA) and you’re kept up with payments, you can take advantage of its streamlined refinancing package.
No face-to-face meeting is required, you pay no underwriting fees, and you don’t need an appraisal. You don’t even have to undergo credit check or income verification. This refinancing is available strictly to lower your monthly payments. It is ideal if your credit situation has improved since you first took out the loan.
All the best,
Timben
Saturday, December 26, 2009
Loans and mortgages – Pick the right time to refinance
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Refinancing your home can save you thousands, but only if the time is right. Before you decide to refinance, ask yourself a few questions:
* How much will I save each month?
* How much will it cost to refinance, and will I live here long enough to make it worthwhile?
* Will the new term be the same or shorter than the term is now?
Experts say if you can drop your interest rate by at least one percentage point – preferably two – and plan to stay in the house at least 18 months, refinancing may be a good idea.
The refinancing will cost roughly $2,000, so figure out how long it will take before you break even and start saving. If you move out of the house before that time, it will actually cost you more to refinance.
Try using the Mortgage Refinance Breakeven Calculator at www.myfico.com. It’s a handy tool when you’re dealing with a lot of numbers. Click on Credit Education, and look in the Calculators section to find the Mortgage Refinance Calculator. Run your figures through the calculator to find out when you would start saving if you refinanced.
All the best,
Timben
Refinancing your home can save you thousands, but only if the time is right. Before you decide to refinance, ask yourself a few questions:
* How much will I save each month?
* How much will it cost to refinance, and will I live here long enough to make it worthwhile?
* Will the new term be the same or shorter than the term is now?
Experts say if you can drop your interest rate by at least one percentage point – preferably two – and plan to stay in the house at least 18 months, refinancing may be a good idea.
The refinancing will cost roughly $2,000, so figure out how long it will take before you break even and start saving. If you move out of the house before that time, it will actually cost you more to refinance.
Try using the Mortgage Refinance Breakeven Calculator at www.myfico.com. It’s a handy tool when you’re dealing with a lot of numbers. Click on Credit Education, and look in the Calculators section to find the Mortgage Refinance Calculator. Run your figures through the calculator to find out when you would start saving if you refinanced.
All the best,
Timben
Friday, December 25, 2009
Loans and mortgages – Split payment for huge savings
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Another way to pay less interest is to split your monthly mortgage payment in half, and pay that amount every two weeks. By making biweekly payments instead of monthly payments, you’ll make an extra mortgage payment by the end of the year.
For example, if your monthly payment is $2,000, and you pay that amount 12 times a year, that’s $24,000. On the hand, if you pay $1,000 every two weeks, or 26 times a year, you’ve paid $26,000 at the end of the year. That’s a difference of $2,000 – an entire mortgage payment.
Check first to see of your lender charges a pre-payment fee. And don’t get involved in a “biweekly prepayment program,” where the lender charges you an annual management fee or an even bigger set-up fee with monthly service charges. It’s not worth it.
All the best,
Timben
Another way to pay less interest is to split your monthly mortgage payment in half, and pay that amount every two weeks. By making biweekly payments instead of monthly payments, you’ll make an extra mortgage payment by the end of the year.
For example, if your monthly payment is $2,000, and you pay that amount 12 times a year, that’s $24,000. On the hand, if you pay $1,000 every two weeks, or 26 times a year, you’ve paid $26,000 at the end of the year. That’s a difference of $2,000 – an entire mortgage payment.
Check first to see of your lender charges a pre-payment fee. And don’t get involved in a “biweekly prepayment program,” where the lender charges you an annual management fee or an even bigger set-up fee with monthly service charges. It’s not worth it.
All the best,
Timben
Loans and mortgages – A little prepayment goes a long way
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Make an extra monthly payment on your mortgage every year, and you’ll save thousands of dollars in interest. Just add a little to you check each month. Over the course of the year, it will add up to an entire extra payment.
For example, suppose you have 25 years left on a fixed-rate 30-year mortgage of $200,000 at 7-percent interest. If you add just $150 to your $1,300 monthly payment, you’ll finish paying your mortgage more than five years early. Plus, you’ll save almost $55,000 in interest over the course of the loan.
To find out how much you can save, visit www.myfico.com, and click on Credit Education. In the Calculators section, the Mortgage Payoff Calculator will figure exactly how much time and money you’ll save by prepaying.
All the best,
Timben
Make an extra monthly payment on your mortgage every year, and you’ll save thousands of dollars in interest. Just add a little to you check each month. Over the course of the year, it will add up to an entire extra payment.
For example, suppose you have 25 years left on a fixed-rate 30-year mortgage of $200,000 at 7-percent interest. If you add just $150 to your $1,300 monthly payment, you’ll finish paying your mortgage more than five years early. Plus, you’ll save almost $55,000 in interest over the course of the loan.
To find out how much you can save, visit www.myfico.com, and click on Credit Education. In the Calculators section, the Mortgage Payoff Calculator will figure exactly how much time and money you’ll save by prepaying.
All the best,
Timben
Wednesday, December 23, 2009
Loans and mortgages – Get a free discount
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You can get an easy discount by having your loan payments automatically deducted from your checking or savings account. Most lenders will lower your APR by 0.25 percent or 0.50 percent just for making automatic payments.
Lenders like automatic deductions because it gives them less paperwork to do. At the same time, it’s good for borrowers in a couple of ways. Not only do you get the lower APR, you don’t have to worry about whether your check will arrive on time. And it’s one less check you have to write.
All the best,
Timben
You can get an easy discount by having your loan payments automatically deducted from your checking or savings account. Most lenders will lower your APR by 0.25 percent or 0.50 percent just for making automatic payments.
Lenders like automatic deductions because it gives them less paperwork to do. At the same time, it’s good for borrowers in a couple of ways. Not only do you get the lower APR, you don’t have to worry about whether your check will arrive on time. And it’s one less check you have to write.
All the best,
Timben
Tuesday, December 22, 2009
Loans and mortgages – Pay off loan in half the time
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Save tens of thousands of dollars by choosing a 15-year mortgage instead of a 30-year term. Your monthly payment will be higher, but cutting the time of the loan in half cuts off years of interest charges. Plus, interest rates are lower most of the time for loans with shorter terms.
Say your annual percentage rate is 7 percent, and you choose a 15-year fixed-rate mortgage over a 30-year mortgage. For every $100,000 you borrow from the bank, you’ll save $75,000 in interest.
It may be tempting to stretch your loan out over 30 years. After all, who doesn’t want to keep their monthly mortgage payment to a minimum? Sometimes, though, you have to spend money to save money.
All the best,
Timben
Save tens of thousands of dollars by choosing a 15-year mortgage instead of a 30-year term. Your monthly payment will be higher, but cutting the time of the loan in half cuts off years of interest charges. Plus, interest rates are lower most of the time for loans with shorter terms.
Say your annual percentage rate is 7 percent, and you choose a 15-year fixed-rate mortgage over a 30-year mortgage. For every $100,000 you borrow from the bank, you’ll save $75,000 in interest.
It may be tempting to stretch your loan out over 30 years. After all, who doesn’t want to keep their monthly mortgage payment to a minimum? Sometimes, though, you have to spend money to save money.
All the best,
Timben
Monday, December 21, 2009
Loans and mortgages – Buy your home with a HELOC
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You can use a home equity line of credit (HELOC) to actually buy a home. A HELOC is an adjustable-rate loan that works as a credit line rather than a mortgage. Usually, you get a HELOC with the equity you build up on a home. Now you can make a down payment on your home and use a HELOC to pay for the rest.
The interest rates for HELOCs are around 4 percent, which can save you a lot of money in interest charges. Since the rate is variable, it can go up or down. But it’s still better than the traditional 30-year fixed-rate mortgage with rates closer to 6, 7, or 8 percent. With a HELOC you can borrow extra cash without having to take out another loan, and all the interest you pay is tax deductible.
HELOCs usually have much shorter terms than traditional loans. Rather than being stretched out over 30 years, a HELOC will have a term of 10 or 20 years. You may want to consider a HELOC if you plan to pay off your home in a short time.
If you like having stable monthly payments, though, you should try something different. The rates for HELOCs change with the market, so the payments will, too.
All the best,
Timben
You can use a home equity line of credit (HELOC) to actually buy a home. A HELOC is an adjustable-rate loan that works as a credit line rather than a mortgage. Usually, you get a HELOC with the equity you build up on a home. Now you can make a down payment on your home and use a HELOC to pay for the rest.
The interest rates for HELOCs are around 4 percent, which can save you a lot of money in interest charges. Since the rate is variable, it can go up or down. But it’s still better than the traditional 30-year fixed-rate mortgage with rates closer to 6, 7, or 8 percent. With a HELOC you can borrow extra cash without having to take out another loan, and all the interest you pay is tax deductible.
HELOCs usually have much shorter terms than traditional loans. Rather than being stretched out over 30 years, a HELOC will have a term of 10 or 20 years. You may want to consider a HELOC if you plan to pay off your home in a short time.
If you like having stable monthly payments, though, you should try something different. The rates for HELOCs change with the market, so the payments will, too.
All the best,
Timben
Sunday, December 20, 2009
Loans and mortgages – Compare online for best price
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You already know you can save money by shopping around for the best mortgage rates. Now you just have to make sense of all the numbers you found. Put those figures into an online calculator to organize your information. You can find calculator programs at Web sites especially designed to help you compare loans.
LendingTree.com is a great place to start. You can submit an application and get rates from four competing lenders. Then compare the rates by plugging them into one of its financial calculators. For example, one will tell you if a 15-year loan or a 30-year loan would save you more money based on the mortgage amount and interest rates.
Interest.com has calculators that tell you what your monthly payments will be from the interest rate, the term, and the loan amount. You can also find out how much you can afford to borrow, how much you’d save by making additional mortgage payments, and how much you can deduct on your taxes.
FindLowerMortgageRates.com also has useful programs like a calculator that tells you how much money you should put down on your new home.
Other good Web sites to try are:
* www.compareinterestrates.com
* www.bankrate.com
* www.loanweb.com
All the best,
Timben
You already know you can save money by shopping around for the best mortgage rates. Now you just have to make sense of all the numbers you found. Put those figures into an online calculator to organize your information. You can find calculator programs at Web sites especially designed to help you compare loans.
LendingTree.com is a great place to start. You can submit an application and get rates from four competing lenders. Then compare the rates by plugging them into one of its financial calculators. For example, one will tell you if a 15-year loan or a 30-year loan would save you more money based on the mortgage amount and interest rates.
Interest.com has calculators that tell you what your monthly payments will be from the interest rate, the term, and the loan amount. You can also find out how much you can afford to borrow, how much you’d save by making additional mortgage payments, and how much you can deduct on your taxes.
FindLowerMortgageRates.com also has useful programs like a calculator that tells you how much money you should put down on your new home.
Other good Web sites to try are:
* www.compareinterestrates.com
* www.bankrate.com
* www.loanweb.com
All the best,
Timben
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