Financial Information
Archive for June, 2010
Stress-Test Your Budget
0In February, the federal government introduced new measures to strengthen housing financing. The new requirements for government-backed insured mortgages include:
• All borrowers are required to meet the standards for a five-year fixed rate mortgage even if they choose a mortgage with a lower interest rate and shorter term.
• The maximum amount Canadians can withdraw in refinancing their mortgages has been lowered to 90 per cent from 95 per cent of the value of their homes.
• A minimum down payment of 20 per cent is required for government-backed mortgage insurance on non-owner-occupied properties purchased for speculation.
“While we do not believe that Canada faces a housing bubble, we fully support the Minister’s actions,” said Jane Yuen, Senior Mortgages, Bank of Montreal. “BMO has mortgage specialists that will help you stress test your budget using a mortgage payment based on a higher interest rate. “
Yuen recommends these tips for homeowners and prospective homeowners:
• Consider a shorter amortization
- The shorter the amortization, the less you pay in interest.
ª Make a larger downpayment
- If you can provide a bigger downpayment, it’s a great way to help you pay less interest over the life of your mortgage. Consider a minimum 10 per cent downpayment
• Make sure you can afford what you signed-up for
- Stress test your financial budget using a mortgage payment based on a higher interest rate.
ª Make pre-payments when you can
- Pay weekly or bi-weekly instead of monthly and take advantage prepayment privileges.
• Always make sure you save up for a rainy day
- If you’re up to your maximum in debt, you may not be well prepared for the leaky roof along the way
• Think carefully about fixed vs. variable
- While variable rates mortgages have been a winning strategy over the long-term, fixed rate mortgages come with the peace of mind from being insulated against rate increases and knowing how much of your mortgage you will have paid down at the end of your term
Mortgages Made Easy For First-Time Home Buyers
0Understanding what mortgages are and how they work can be mystifying for first-time homebuyers faced with the need to get financing to purchase their first home. Technically, the type of mortgage that home buyers use to get a loan to purchase a home is a contractual instrument that gives the lender, known as the “mortgagee”, an interest and certain rights in the property purchased by the borrower, or “mortgagor” (When it comes time for you to read and review the documents setting out your mortgage, the easy way to keep the terms straight is to remember that the “e” that ends “mortgagee” is the same “e” at the beginning of “lender”, while the “or” at the end of “mortgagor” is the same “or” at the beginning of “borrower”. )
Like many legal terms, such as lien or trespass, the word “mortgage” has its origins in the Law French that heralds back to the beginning of British (and American) common law. A “mortgage” – from the French “morte”, meaning death – was known as a “death pledge”. That is, when the debt was repaid the interest and rights of the mortgagee or lender in the borrower’s land or property expires, or dies. The mortgagor then has clear title without any rights, interests or “encumberances” remaining with the mortgagee.
Amortization, Interest Rate and Term
There are three main terms that will apply to all mortgages – the amortization period, the interest rate, and the term of the mortgage. The “amortization period” is the total amount of time (usually expressed in years) which it will take for the mortgagor to pay off his or her mortgage given the terms of the mortgage. The most typical amortization period when an individual is purchasing a home is 25 years, although longer amortization periods of up to 40 years have become more common and commercially available.
The “amortization period” is not to be confused with the “term” of a mortgage. Most usually a mortgage agreement will be for a specific number of years, but for less than the full amortization period. Formerly, the longest term available for mortgage financing was five years, However, some longer term mortgages of up to ten or even twenty-five years have now become available from some commercial lenders.
The difficulty with longer term mortgages, for both mortgagor and mortgagee (borrower and lender), is determining what is a fair and reasonable interest rate to be charged on the mortgage over the duration of such a long period of time. Interest rates fluctuate over time, and forecasting interest costs over an extended period is exceedingly difficult.
The interest rate is the percentage of interest that a lender will charge on an annual basis for the mortgage loan. On a $100,000 mortgage loan, a 5% interest rate would mean that the borrower is paying $5,000 per year in interest.
Mortgages payments are most often made in equal installments paid on a monthly basis over the term of the mortgage. Each monthly payment will go first towards paying the interest on the mortgage loan, and then towards paying off the principal, or outstanding balance, of the loan according to a fixed formula. As the principal of the loan is reduced, less money is owed in interest and consequently more of each payment goes towards paying off the interest.
Each mortgage payment is thus a blended payment, consisting of both an interest payment and a payment towards the mortgage principal. Because the principal amount (and thus the money owing under the mortgage) is reduced over time. the first payments during the term of the mortgage will go mostly towards paying interest, while a greater proportion of principal will be paid off in payments made at the end of the mortgage term.
Fixed-Rate and Variable-Rate Mortgages
Mortgages are also distinguished on the basis of how the interest rate is set. There are two main types of mortgages a fixed-rate mortgage and an open-rate or variable rate mortgage. Under a fixed-rate mortgage, the interest rate is specified for the entire term of the mortgage. Under an open-rate or variable mortgage, the interest rate will vary based on market conditions, usually specified in terms of the mortgagor bank or trust company’s prime lending rate.
Whether to choose a fixed-rate or variable rate mortgage is one of the biggest decisions facing the first-time homebuyer, and anyone seeking mortgage financing. If interest rates are relatively low historically speaking, the interest rates that fixed-rate mortgages are offered at will be higher than the rate offered for a variable rate mortgage. Here the bank or other lender assumes that rates are likely to go up, and charges a higher interest rate for a fixed-rate mortgage to assume that risk.
When interest rates are relatively high – say 9% to 10% – fixed-rate mortgages are typically offered at a lower rate than is being offered for variable rate mortgages. Here, the borrower is assuming the risk that interest rates will not go down from historically high levels. Consequently he or she can usually borrow money at a better fixed-rate than variable rate.
Open Mortgages versus Closed Mortgages
The other significant differentiation between mortgage types that will be of great interest to first time homebuyers is whether their mortgage is an open mortgage or a closed mortgage. An open mortgage can typically be paid off without penalty at any time durng the term of the mortgage without penalty. Under a closed mortgage, on the other hand, there will be a sometimes quite significant monetary penalty for paying off the mortgage before the term of the mortgage expires (although, a closed mortgage may allow for periodic lump sum payments that will go directly towards paying off the principal of the mortgage).
Open mortgages are most often preferable where the homebuyer wants to avoid being locked into his or her mortgage arrangements, thinks interest rates may decrease during the mortgage term or thinks he or she may be selling the mortgaged property before the expiration of the mortgage’s term. Closed mortgages are usually preferable where the homebuyer is operating on a tight budget and needs the security of knowing that mortgage payments will be unaffected by rising interest rates.
Refinancing
Following the expiration of the initial mortgage term, the remaining principal that is outstanding on the mortgage will have to be paid to the lender. This will usually entail refinancing a mortgage for a new term with the same or a different lender. Again, on refinancing the principle variables will be the amortization period, the interest rate and the term of the refinancing. The same considerations will also apply: fixed-rate versus variable rate, open mortgage versus closed mortgage.
Importantly, refinancing may also be available during the term of your mortgage. As your home’s principal is paid off your home equity – or the difference between what is owed on a home and its market value – increases. Mortgage refinancing is also generally available that will enable you to access that home equity through a second mortgage or line of credit secured against the equity in your home, even during the term of your first mortgage.
Your realtor, financial advisor or an independent mortgage broker should be able and willing to walk you through the different mortgages that are available to you, so that you can determine the mortgage product that is right for your circumstances – whether you are purchasing your first home or refinancing.
FHA loans for Florida home buyers, 97% Financing down to a
0FHA loans for Florida home buyers, 97% Financing down to a <530 FICO SCORE> The FHA loan program is a mortgage Florida loan program designed to assist every qualified and eligible Florida homebuyer with having the opportunity to own their own Florida home. Insured by FHA/HUD the FHA loan program provides prospective Florida mortgage applicants with a tremendous opportunity to own a Florida home. FHA loans offer the best Florida mortgage rates and are traditionally lower than conventional Freddie/Fannie home loan programs, the FHA program is fast becoming the Florida mortgage loan of choice for many Florida Home Buyers.
Purchases (Min 530 score)
12 months cancelled checks or Management VOR Must have 3 open and active tradelines for last 12 mths Payment shock limited to 1. 5 times 35/45 Max DTI No late’s or collection in last 12 months NO late’s after BK
No Score Borrowers
3 Alt tradelines 0×30 with 12 month history Management VOR or 12 months cancelled checks Max ratio 31/43
NO collection other than medical
APPLY NOW AT http://www. fhamortgageprograms. com/florida/
Using the FHA loan program to attain a Florida mortgage just makes good sense.
Welcome to our FHA home loan financing section. We’re very excited that you’ve elected to give the FHA home loan consideration. The benefits of an FHA loan far outweigh any other Florida mortgage program. Did you know, that the FHA loan program provides more security to Florida homeowners than ANY other Florida home loan mortgage? When Florida homeowners face financial difficulty they have a higher probability of NOT losing their home if you have an FHA mortgage Vs. those Floridians that choice who have a conventional or risky Sub-Prime Florida home loan. Plus, all Florida FHA home loans are FULLY assumable — adding one more layer of protection for Florida homeowners and their families The fact is, For Florida homebuyers there are a wide range of FHA home loans available to qualified mortgage applicants. And the real truth is, FHA loan programs do not consider your credit score. Many Florida homebuyers people find this very difficult to believe, but it is in fact dictated by under FHA guidelines that credit scores cannot be considered. . This gives Florida homebuyers who might not otherwise have the ability to secure a low fixed interest rate FHA mortgage Did you know the FHA Mortgage program typically only requires a 3. 5% down payment and allows 6% seller-paid Closing cost. You wont find these benefits with any other mortgage progrm. Florida FHA mortgage programs vary; to learn more, Here is a just a few FHA loan products to help Florida homeowners achieve their goals. Using the FHA home loan to purchase a Florida home is really no different than obtaining a conventional loan. Only difference is that FHA home loan some additional documentation, but these are actually blown out of proportion by other Florida mortgage lenders who cannot originate the FHA mortgage loans and want to push you into a conventional or subprime Florida l mortgage loan. Refinancing an existing Florida FHA home loan is actually called an FHA streamline refinance. However, streamline only applies to Florida homes for which you are refinancing to change your rate and term only. If taking cash out, or refinancing with an FHA home loan, you will have to go through the traditional FHA refinance process. Amazingly enough, you can finance Florida mobile home and land with the FHA home loan. In some instances, you can even get up to 96. 5% of the purchase price, and much lower rates than you will get through any other Florida mortgage loan program available today! The FHA reverse mortgage program is designed for Florida Seniors wishing to cash-out their equity in their home or create a monthly income stream to supplement their income. In both cases, you make NO monthly payments and it’s backed by the Federal Government! The FHA 203K Mortgage program is perfect to purchase a Florida Fixer home– the one that’s perfect for you, in the perfect location, but just needs a little rehabilitation. For those Florida homebuyers can’t qualify for the traditional FHA home loans, in some areas, we can help with an FHA Credit Flex mortgage . This FHA program was developed to help qualified Florida mortgage applicants in qualified communities to buy today. If your credit has taken a turn for the worse, this FHA mortgage loan program could be the perfect alternative to renting. As you can see, the FHA Home loan program unique in many ways. We serve a broad range of Florida mortgage applicants across Florida, whether you have outstanding credit or Bad Credit, the FHA home loan program offers Florida homeowners and home buyers alike unmatched benefits with exceptionally competitive mortgage rates. Not every Florida mortgage lender can originate the FHA mortgage loan. FHA/HUD maintains strict guidelines which limit which Florida mortgage lenders can assist Florida home buyers and home owners like you, with FHA financing. With such strict quality FHA guidelines for Florida mortgage companies, you can know with confidence, if the Florida mortgage company you are working with originates the FHA mortgage loan, then you are dealing with a strong and reputable mortgage company. . , Just some of the tremendous benefits of applying for a Florida FHA mortgage are: FHA mortgage Interest Rates much Lower than Bad Credit Loans FHA home loans are assumable You don’t have to have a Florida bank account to qualify for an FHA mortgage Loan FHA loans down to a 500+ FICO? you might still be eligible for the FHA Loan program! Underwriting is done using both Automated and Manual review – This means if an FHA Mortgage loan makes sense, it doesn’t matter what the computer says. Collections do NOT disqualify you from being eligible for a FHA mortgage Prior Foreclosures and Bankruptcies do not automatically disqualify you, or if you qualify, mean you have to pay a higher interest rate as a “Penalty” FHA loans have NO INCOME RESTRICTIONS – This means EVERYONE Florida mortgage applicant is eligible for the FHA loan program regardless of whether you’re wealthy or poor, have owned a Florida home before or are a First Time Buyer. Higher Ratios are allowed for eligible Florida mortgage applicants than through Traditional Mortgage programs Typically, there are NO Cash Reserve requirements. for a FHA mortgage loan. Overtime, Bonuses and Part Time Income can typically be used for qualifying for your FHA mortgage loan. Non-Occupant Co-Borrowers can help you qualify for the FHA Loan program – You can have a parent co-sign for you and help you qualify if you can’t qualify on your own. Underwriting Flexibility that is based upon your credit not your credit score – Credit score is not even a consideration when applying for FHA financing. No credit history is required to qualify for an FHA mortgage Works with Grant and Charity organizations – You don’t even have to have a down payment. . FHA Home Buyers – Seller paid closing costs up to 6% are allowed. Florida Home Owners – A cash out Florida Refinance with the FHA program is OK! Down Payment assistance from Family and Family Friends is OK! You don’t have to have a bank account to qualify for an FHA mortgage Loan Collections do NOT disqualify you from being eligible for an FHA mortgage Prior Bankruptcy does not automatically disqualify you for an FHA mortgage, or if you qualify, mean you have to pay a higher interest rate as a “Penalty” NO INCOME RESTRICTIONS or REQUIRMENTS- This means EVERY Florida mortgage applicant is eligible for the FHA loan program regardless of whether you’re wealthy or poor, have owned a Florida home or had a Florida mortgage in the past. Higher Ratios are allowed for eligible Florida FHA mortgage applicants than other Traditional Mortgage programs Typically, there are NO Cash Reserve requirements for an FHA mortgage. Overtime, Bonuses and Part Time Income can typically be used for qualifying for your FHA mortgage loan. Non-Occupant Co-Borrowers are just fine with the FHA mortgage Loan – You can have a parent co-sign for you and help you qualify if you can’t qualify on your own. The fact is, there are many good reasons for all Florida home buyers and Florida home owners to consider the FHA mortgage loan. Beyond FHA having the best interest rates and benefits, most flexible qualifying and greatest terms, the FHA mortgage loan gives Florida homebuyers piece of mind. The loan program is administered in such a way that it is actually designed to Florida homebuyers and homeowners. How, you ask??? Unlike traditional home loan financing and Sub-Prime Bad Credit home Loans, the FHA mortgage Loan program offers three different Foreclosure prevention programs that actually help tens of thousands of Florida home owners keep their homes -every year. To have these Foreclosure prevention options available should you have a financial roadblock, you have to have a FHA/HUD on your side working hand and hand to help you avoid a Foreclosure. Just one more reason why Florida homebuyers should consider getting an FHA Mortgage.
FHA loans are Gaining Florida Market Share, (((97% w 530 FICO)))
0FHA loan Florida, FHA mortgage Florida, FHA mortgage lender FLorida, FHA Home loan,
FHA loans are Gaining Florida Market Share
FHA loans in Florida are gaining Florida market share at an incredible pace. Four years ago very few sellers would accept an offer from an FHA buyer who wanted to take advantage of an FHA mortgage loan in Florida. This is because it was a sellers market. In fact most Florida sellers wouldn’t accept an offer where the home was not sold, “as is”. This meant that the Florida buyer would be responsible for any repairs and all repairs needed to the property uncovered in the home inspection. Since Florida sellers would just kill the contract, wait 2 weeks and more than likely have a higher offer from a Florida buyer willing to pay more.
The Florida home buyer the FHA program can simplify the purchase of a home, making financing easier and less expensive than a conventional mortgage loan product. Some highlights of the Florida FHA loan program include:
Minimal Down Payment and Closing costs. Down payment less than 3% of Sales Price Gifts are allowed Seller can credit up to 6% of sales price towards closing and prepaid costs. 100% Financing available No reserves required. FHA regulated closing costs. Easier Credit Qualifying Guidelines such as: No minimum FICO score or credit score requirements. FHA will allow a home purchase 1 year after a Bankruptcy. FHA will allow a home purchase2 years after a Foreclosure.
Apply for FHA financing in Florida at www. FHAMortgageFHAloan. com
FHA loans in Florida were less than 5% of the Florida market back then. Today most Florida sellers didn’t want to be responsible for a tougher FHA appraisal that most Florida FHA loans were known for. In today’s Florida real estate market most sellers would be happy for any offer. Since it is a Florida buyers market now the added an FHA appraisal requirements no longer are an impediment to a offer being accepted. FHA loans across Florida now make up over 30% of the market. It is even higher in some Florida places.
With Florida FHA loans being more popular, Florida realtors and Florida closing agents and Florida mortgage companies are getting more comfortable with them. This is great for Florida homebuyers since they have some protections that most other loans do not have. These include streamline refinances and an assumable feature. Conventional loans do not have these same advantages. Also most conventional loans now require at least 10% down payment compared to a 3. 5% down payment for FHA loans in Florida.
FHA loans in Florida also have another big advantage. The Florida mortgage applicant can get the entire down payment as a gift. They also allow the seller pay up to 6% of the closing costs. The mortgage conventional loans are not as flexible with their requirements. You also don’t need to be a Florida first time home buyer to take advantage of a Florida FHA loan. You can only have one FHA loan at a time (except under rare circumstances), and it needs to be a primary Florida home. I would not be surprised to see the FHA loans in Florida secure an even greater market share in the future.
Apply today at http://www. fhamortgageprograms. com
For Florida first time home buyers and other Florida mortgage applicants , the FHA home loans can have key advantages:
Easy Qualification – The FHA loan insures Florida mortgage lenders against loss for loans made to properly qualified Florida FHA home loan mortgage applicants. So you’re likely to find FLorida FHA mortgage loans with terms that make it easier for you to qualify.
Minimal Down payment Requirements – Florida FHA mortgages can work with as little as 3% down and those funds can come from a family member, charity, or your employer. Although the FHA loan does not have a zero down mortgage option yet, you will find that your 1st Continental Mortgage loan officer can point you to many Downpayment assistance programs that work well with Florida FHA home loans.
Less than A-1 Credit is Okay – The Florida FHA home loan program exists to expand the pool of home buyers. Even borrowers with prior bankruptcies or mortgage lates get approved every day for FHA mortgages to buy or Refinance homes in Hillsborough County or any of the other Florida counties we serve. The FHA loan program uses credit quality, not credit score!
Lower Cost Over the Life of the Loan – The Florida FHA home loan rates are extraordinarily competitive. FHA’s lower risk to the lender means a better rate for the borrower.
Safeguards for Borrowers Who Get Behind – The Florida FHA loan mortgages also allow the lender more options in helping borrowers who fall behind keep their homes are get current again: special forbearance, workouts, even free mortgage counseling. Further, HUD can allow the lender to take past due payments and move them to the end of the loan and in some instance will actually pay your past due payments for you. Options to save your home you’ll never get from a conventional loan! In an uncertain world, this is another excellent reason for you to get an FHA mortgage.
Options for Manufactured Housing – Under certain conditions, you can even finance a Florida Mobile Home or manufactured home using a Florida FHA mortgage loan. Call 1-800-570-0448 to get pre-approved for a Florida FHA loan for manufactured housing or just use our quick application to learn more!
FHA Loans Are Fully Assumable – When you are ready to sell your home, you can offer buyers FHA financing! All FHA loans can be assumed by qualified buyers.
These are just seven of the many good reasons to apply for an FHA mortgage. Call 1-800-570-0448 to speak with a friendly Florida FHA loan specialist now!
The FHA program has evolved since it started in 1934 and now has options for HUD insured loans that fit a variety of different borrowers and situations.
FHA Home Loans for Purchasing a Florida Home
Although Florida FHA mortgage loans require additional paperwork, the reality is that applying for an FHA mortgage loan in Florida is not much different from applying for conventional financing. In fact, for many borrowers the small amount of extra time turns out to be an exceptional mortgage bargain because they save thousands of dollars over the life of their Florida Mortgage.
At 1st Continental Mortgage, we have been working with the FHA program for many years. We’re experts at assembling the proper paperwork and presenting your loan application to FHA approved lenders diligently and professionally. It’s one of the ways that we have earned our reputation for closing FHA home loans in Florida on-time.
You may be surprised at how flexible sellers are in the current market and how many programs there are that provide Downpayment assistance to applicants for FHA financing to purchase Florida homes, condos, and townhouses. The fact is, seller can pay up to 6% towards your closing costs. This means, no closing costs for you when negotiated during the purchase contract!
The FHA program offers excellent fixed rate options and never a prepayment penalty. If other mortgage lenders are quoting you subprime rates, you owe it to yourself to make the call to 1st Continental Mortgage to compare the costs of getting an FHA home loan for your home purchase. Call 1-800-570-0448 to speak with an FHA mortgage expert before accepting any conventional mortgage quote as the best you can do!
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How to Save on Your Energy Bill and Save Your Money
0How much electricity bill on this month? It’s too expensive right ? How can I reduce my waste? If you enough for these questions. I think you should look for alternative energy such as Solar power or Wind power or else you should think about How to save on your energy bill and save your money. It is time to take some easy steps way to learn How to save on your energy bill and save your money You can reduce your electricity bills by following very simple steps. This article will list some simple, easy-to-do things to reduce your electricity bill. Restricted use: Start from yourself. If you were the person who step out of your room without any concern about your computer , light bulb or any your electrical appliances and go to take a call in another room or join your family at the dining. If you would, you must stop it now! , and look around. Switch off all the appliances even if you would be back in few minutes. Yes, even that will help. This is first Way to save on your energy bill and save your money. Another thing to save energy bill is what you perceive as an electronic appliance. Would you switch off the computer and television set, turn off the fan, but not the light bulb? Yes, you need light, but when you are leaving the room you should switch it off. Taking care of these small things will go a long way in reducing the dreaded huge electricity bills. Every drop of water constitutes to the ocean. Smart choice: Choose smart choice by replacing your incandescent bulbs with compact fluorescent light (CFL) bulbs. These bulbs are a great power-saving investment. Smart investment: create your own electricity by alternative energy such as solar power generator or Wind power generator Buy the Power Save gadget. The gadget helps monitor the power supply to your house that make you know your limit and uses the minimum that is needed. Home appliance usage: Most of us complain that the electricity bill so expensive because of the number of electrical appliances they have at home. However, the electricity bill is not directly proportional to the number of gadgets you use but the way you use them. Let’s see how to save on your energy bill and avoid the typical power-wasters.
Use the washing machine only when there is a full load of clothes.
Keep the geyser on for the minimal amount of time.
Keep the air-conditioner at the minimum low or high temperature, just enough to keep you off the heat or the cold outside.
Switch off the computer monitor even when you take a one-minute break. It takes just a second to switch on the monitor again! Power saving mode is not enough!
Yeah, now you just finish easy step How to save on your energy bill and save your money Remember, if you can stick to this way it’s mean you reducing your electricity bill is equivalent to saving power, thus helping the world save power for its future generations. And global warming Learn How to save on your energy bill and save your money http://howtosaveenergybill. blogbyday. net/
Federal School Loans vs. Private Loans – Which is Better?
01 year ago
by admin
in Scholarships
Most people need some sort of outside funding to help pay for their college education. When looking for student loans, you have two choices. You can apply for federal loans which are backed by the government or you can seek money from a private lender.
Each method comes with benefits and drawbacks, so it’s hard to say which one is better. This article will explain the benefits of each and help you decide which is right for you.
Federal School Loans
Federal school loans are government regulated. This means that the lenders have to abide by strict rules when it comes to repayment terms on your loans.
For example, interest rates on federal school loans are set at a ceiling by the government and the lender cannot exceed that rate. They can go lower than that, and in some cases they do in order to stay competitive with other lenders, but they must stay below the max. This is good for the borrower because when they take out a federal loan they know what to expect with their interest rate.
Federal loans are typically fixed rates as well, which means the interest rate is set at a specific percentage and won’t change for the entire life of the loan. Fixed rates mean there won’t be any surprises in your payments from month to month. They should be almost exactly the same each month.
The interest you pay on your loans each year on federal loans is tax deductible, too. If you owe a lot of money, you can claim a nice chunk of your payments as deductions.
One final advantage of federal school loans is the flexibility of repayment you’re allowed. If you’d like you can arrange for your loan to be a 10, 20, or even 30 year loan, which will lower your monthly payments and make them more affordable.
Private School Loans
Perhaps the best part of private school loans is the ability to apply for one whenever the need arises. With federal loans you have to fill out the required paperwork ahead of deadlines in order to receive a loan for a given semester. When requesting private loans you can apply at any time.
Another great thing about private loans is they can be used for fringe school expenses, such as books and transportation. Federal loans must be applied to specific expenses, such as tuition and room and board, but private loans can be used for just about anything not covered by federal loans.
Private loans are not need-based, either. This means that no matter your or your parent’s financial situation, you are eligible for private loans. Financial aid and many federal loans consider your financial need before you receive money, and sometimes the amount is reflective of your need. Private loans, on the other hand, will give you the amount you request, provided you meet their credit check criteria.
Which is Better?
Which type of loan is better depends entirely on your personal situation, however, knowing the facts will help you make the best choice for you. This article addresses some of those facts but be sure to discuss the options with your school financial aid office as well.
For more about school loans consolidation visit School Loans Consolidation Guide where you’ll get free student loan advice and a student loan consolidation comparison.
Consolidating School Loan – Definition And Basis
01 year ago
by admin
in Scholarships
Consolidating School Loan – Definition And Basis
By consolidating school loans, you can combine your multiple loans under one debt. Visit Here http://debt-restructuring-help. blogspot. com
You can get special benefits by availing this program such as structuring the repayment the way you like, low monthly payments, fixed interest rate, one payment every month to a single lender, flexible repayment procedures during hardships etc.
School loans are a great way to finance education but they eventually need to be paid off. If you manage your finances smartly, school loan will no more be a burden for you. A good and smart way to do so is to consolidate your school loans.
Once you enter into the job market, you will realize that it is not that easy to get a job that can pay for everything in the first place like your home expenses on one hand and your debts on the other. Keeping this in mind, you should start thinking of consolidating your school loans.
Repayment methods:
School loan consolidation provides you with an easy repayment schedule. You can pay off your school debts by choosing a payment plan which ranges from 10 years to 30 years, thus reducing your monthly installments. You can select any one of the repayment methods given below:
Level payments: In this plan your consolidated loan is repaid in equal monthly payments over the maximum term.
Graduated payments: According to this plan, you pay only the interest each month during your first one-third of the repayment term. For the remaining two-thirds of the repayment term, you pay level monthly payments.
Graduated payments (income-sensitive): In the first quarter of the repayment term, you have to pay only the interest each month. In the second quarter, you pay level monthly payments on the balance, using the original maximum repayment term allowed. In the last half of the repayment term, level payments are re-calculated, enabling you to pay off the remaining loan.
Benefits:
By availing school loan consolidation, you are entitled to the following benefits:
· Consolidating school loans helps you bind your multiple loans together into a single unit.
· It makes your life easy by simplifying your finances, making you pay just once in every month.
· It makes you pay at low or adjustable interest rates.
· It decreases your monthly installment.
· With federal loans, one can also opt for benefits like deferment, forbearance, forgiveness etc.
However, with all these benefits it also has some disadvantages which are as follow:
Consolidating school loan for a longer period of time means that you end up paying more than the actual loan amount.
When opting for deferment, you can end up accumulating your interest till the time your deferment period gets over thus amounting to a huge sum.
Not all loans are eligible for forgiveness at the time of consolidation.
You can avail federal as well as private loan consolidation. The federal loan consolidation is free of charge whereas private loans may cost you. Review the terms and conditions of both federal and private loan consolidation then make a selection. Find a quick review of both programs below:
A Quick review of federal and private loan consolidation:
Federal consolidation loans are a way to refinance federal education loans only. Private consolidation loans are a way to refinance private education loans. The main difference is that a federal consolidation loan comes with a fixed interest rate that follows a set federal formula, whereas private consolidation loans come with a market rate that may be fixed or variable.
While consolidating both federal and private loans, make sure to keep them separate. Refinancing a federal loan with a private loan can result in a much higher interest charge if compared to keeping them separate and paying individually. Visit Here http://debt-restructuring-help. blogspot. com
Access Groups My Inspiration $10000 Law School Scholarship Contest
01 year ago
by admin
in Scholarships
Thanks to all for your inspiring entries – We have the winners!
What it Means to Give and Share– An Interview with a Penny Harvest Student Leader
01 year ago
by admin
in Scholarships
As one student leader commented: “Penny Harvest is hanging out and talking about stuff, and telling people what it means to give and share. ” When asked where they granted the money they collected, the student replied: “Homeless and animal shelters, I think those were two main ones, and also orphans, and people who don’t have things, like for disaster relief. ” The Holyoke Roundtable Leaders also granted a portion of their grant-making budget to two local residents in need. Thanks for sharing student leaders! You guys are making a huge difference in our community! For more information, or a list of student grants, please visit our website: www. ypfoundation. org
