Why Credit Crisis isn't Touching Reverse Mortgage Biz

By Tupania Vanrock

We're growing downright numb to hearing about all the horrors related to the current credit and mortgage crisis. Its a wicked thing making a wake through our entire economy.

I know mortgage loan officers all over the country. Each one tells a similar story. All their businesses have nose dived, and some have lost as much as three quarters of their business.

All polled telling sob stories would have one thing in common, they are all doing forward mortgages. If I polled a reverse mortgage loan officer I'd hear something quite different.

The question is why? First, since banks on the forward end are so hesitant to lend out money one can see how a reverse mortgage, which does not require monthly interest or principal payments, might be a healthier investment for a bank or the banks investors.

The one real risk to the reverse mortgage involves a negative equity position for the bank. To combat this the bank lends with relatively low loan to value ratios, which in turn give it the security its investors desire to fund the loans.

Adding to the recipe, the over 62 market is growing like a weed. Many demographers believe the over 62 population will double by the year 2030.

This age group has one problem its parents didn't. It's parents faced cost of living increases, as we all do, but this generation of seniors didn't save like it's folks did. The need for additional income is greater with this group.

Another less important factor is the current economy. Many seniors have lost much of their savings in the stock market dive of '08, and large numbers are looking for additional financial tools.

From early indications this group is taking out a reverse mortgage and using it in one of two ways. They are either paying off a mortgage to free up more money for savings, or they are simply using the loan as a financial safety net.

Where things go, economically, in the coming years in anyone's guess. Home values are falling with no real end to the recession in sight.

Reverse mortgage lenders could see real issues if home values drop drastically from here, but barring that event the sun appears to be shining on this business.

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Rebuild Your Credit With Credit Cards

By Dan Moskel

A credit card can help you rebuild your credit score. This card will help your ratio of available credit to debt and you can build a positive payment history.

This is how you will build positive credit to your damaged score. Unfortunately because of your low score you will have to pay higher interest rates.

You should still make efforts to remove derogatory items off your credit report. However it is rumored that once a derogatory item ages four years it will not impact your score as dramatically.

If your credit score is low you will still be able to qualify for a sub prime credit card. This means you will pay approximately 19% APR and an annual fee.

You credit limit will be approximately $300. The other option is to get a secured credit card, however your credit score will not receive the same benefit.

A secured card you will have to put a deposit down and the amount of your deposit is the credit line on your card. This card will report to the credit bureaus however it will not give you the same benefit as an unsecured card.

Both of these cards offer online approval. However before you apply for any card double check and make sure that card does report monthly to all three bureaus.

A helpful tip to get the most positive credit built from your card is to keep your balance at 10% of your available credit. If your card has a credit limit of $300 it will help if you can keep your balance at around $30.

This will show the bureaus that you use your credit, and you use it responsibly. In addition having this new line of credit will improve your ratio of available credit to debt. This is a very important factor when your score is calculated. It is the bureaus method of checking to see if you are in over your head.

The last option for a card is a shopping card or a credit card that is only accepted at a specific location. We do not suggest these cards; they often come with large upfront payments and only report to one credit bureau.

A prepaid debit card is another option. We suggest this option to individuals in chexsystems because it will work just like a bank account.

In sum we suggest you open a sub prime credit card for your credit score to get the most benefit. This card will help improve your score by creating a positive payment history and improving your ratio of debt to available credit.

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How Prepaid Credit Cards Work

By Gray Rollins

One of the hardest things to keep intact today is your credit. Let's face it, when you are old enough to worry about your credit, chances are you do not have any and when you do finally get it, it can take something as simple as a late payment to tarnish it. It can be very difficult for one to keep their credit perfect so that they can enjoy the benefits of having great credit.

Credit card is the major factor influencing your credit. You can build your credit with their help but they also have the power to take your credit away. That makes the prepaid cards a popular choice for people who want credit. They enable you to change the credit score if you need any changes.

A prepaid credit card is good way for you to control your spending without hurting your credit. These types of credit cards are generally backed by major credit card companies so there is no need to worry about whether they're legitimate or not if you go with the right one. Just be sure that you check out the company before you open up the account. A prepaid credit card will help you build your credit back up. You want to be sure that you make an educated decision on the prepaid card you choose to go with so that you can get the most benefits out of it.

Since the card is prepaid, you are in complete control of what goes on with it. You are the one who adds the money to it so you can control the amount that you spend. If you try to spend more then you have on the card, then the transaction will be denied. This makes it impossible for you to go over the credit limit. There will not be any over the limit fees and your credit will stay safe.

Don't think that there are only benefits attached with the prepaid credit cards. You have to understand some other requirements that you need to fulfill when you use this kind of a card. First, you will be charged an amount as standard fees for usage of such card. Then you may also have to pay a certain amount to the company for putting money on the card and also for taking the money off the card. You will also have to pay some charges if you are unable to maintain the minimum amount specified on your credit card.

Prepaid credit cards are good for those who wish to control their spending and to improve their credit. You just need to do a little homework before you make your choice in what company to go with. Be sure that the report to the credit bureaus so that you will be able to improve your overall credit score. You want to know what fees they may or may not access for each transaction and when you put money on or take money off.

Be sure that you know what your limits are even though this is a prepaid card. The credit card company may have a limit as to how much you need to keep on the card or there may be a limit as to home much cash you can get off the card each day just like a regular card. Read all the guidelines so you can make an educated decision.

For all people who have some kind of credit problems, the prepaid credit card is a wonderful option. With this card you will not only get rid of such problems but it will also help you in providing many opportunities for development. You will not have to worry as far as your credit is concerned and you will move ahead to a better life.

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Stock Market Trading Rules- Ten Secrets

By Singapore Trader Reports

A well fact amongst the trading community is that 90 percent of investors lose money in futures and Forex tradin! This leaves 10%, which is then broken down to 4-6 percent break even and only 4-6 percent make money.

What Group Are YOU in?

Given the high numbers of clients that are unsuccessful, it is all the more important for investors to approach futures and forex trading in the right manner. So we have put together some rules that hopefully help you become a more successful trader.

Secret 1: Trade with Money you can afford to Lose

Now that you have decided to get involved in trading, sit down and asses how much money am I going to trade, investor, speculate on the market with. I understand that this is trading and therefore there is the chance that I can lose my money.

Secret 2: It's Not how many trades: Do not OVERTRADE

So many new traders come to the market thinking, I am going to pick 8 winners out of 10 and make all of this money. Well it is possible to pick more winners but still lose on the market. Why because of risk and money management, so always put in equal amounts per trade. Eg: if you have $20,000 to trade, break it up into $2,000 trades, this will help with you staying in much longer and increasing your success to become a successful or a full time trader.

Secret 3: Run with the profits, and cut those losers.

If a trade goes against you, remember to cut it. No one can pick the market 100% of the time, so don't think you are different. If the trade is going the wrong way cut it. Re look at the trade, there is going to be plenty more. Once they start going up, let them go, who knows how high they go. Remember always use trailing stop losses.

Secret 4: Feel Like you can't pick your nose- Have a Break

It can be possible that you are just not picking the market right or there are strange market conditions if this is the case take a break. Walk away and then come back and look again.

Secret 5: Work like an Egyptian build pyramids

As the market moves up and you are long much earlier, you must learn not to double up your positions. Instead, reduce your positions each time you add to a position. If at first you had 10 contracts, the second should not be more than 5-6 contracts and the third should be 50% of your second (i.e. 3 contracts). An upside down pyramid will be top heavy and could wipe out all your hard-earned profits should the market reverse.

Secret 6 : Don't Double Down- It just compounds losses

If start to add to a losing position by averaging down this is going to be very dangerous. Remember you are investing with "margin". The contract is not yours; you merely paid a percentage of the total value. Averaging a losing position is equivalent to not admitting your mistakes, that you were wrong in the first place. Successful traders cut their losses short and realize that you can't get 100% of winning trades. We all try, but we can't. So cut losses.

Secret 7: WHO wants to be a millionaire? Don't Put it all in One Trade

Use risk and money management to protect your capital, divide your trading capital into 10 equal parts and never lose more than 10 percent on one trade. If you lost the first trade, you still have nine more opportunities to be right. Putting all your capital on one trade is suicidal and you will go down.

Secret 8: NEVER MEET MARGIN CALLS - CUT THE $hit- Saves you Money

When you are wrong about the market, get out, admit it and move on. Once you start thinking, very often prices will go against your position, further triggering a margin call from your broker. A margin call simply means that you are wrong in the market and your position should be closed out. Margin calls are made because people do not want to admit being wrong and take a loss; they hope the market will eventually go in their direction and that they will get there money back. It will come back, I am not wrong. Yes you are.. Get out. To avoid this mistake, you should never meet margin calls. Just cut your losses and "get the hell out".

Secret 9: Transfer Profits

Probably no more than 1% of traders have a rule to take profits out of their trading account. The few wise investors I know have bought their house, a car or simply put part of their winnings into a fixed deposit account, or into some long term shares, otherwise the chances are high that they may lose them all back.

Secret 10: James Blunt knows- Baby because I've got a plan Make a Plan

Lack of planning can only result in no plan, and without a plan you are gambling. Look at getting advice, from stock market reports, Great Broker look finding a great stock broker, use this site to see who they recommend.

HELP HINTS: Most traders should listen to the Kenny Rogers song The Gambler, there are aspects of that song that can learn from, mainly, know when to hold them, know when to fold them, and know when to 'cut' RUN

1. Know when and at what price you are going to enter the market. 2. Know how much money you are going to risk on each and every trade. 3. Know when and at what price you are going to get out when you are wrong. 4. Know when and at what price you are going to take your profits if you are right. 5. Know how much money you are going to make if you are right. 6. Have a safety stop in case the market does the unexpected. 7. Have an approximate idea of when the market should meet your objectives or when it should begin to make a move; and if it has not done so, get out.

FINAL WRAP UP

One of the most important things to take away are set a plan, has your risk and money management plan in front of you and stick to it. If you have that plan and it doesn't work, re plan, that's why if you start small you can soon build up to be whatever trader you want to be.

Happy Trading

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Day Trading Advice From The Pros! Their Secrets Revealed!

By Sam Lockwood

Day trading can be an amazing way to make good money, or an amazingly stressful occupation. No matter what some may say, it's not an easy ride. You have to put some serious work into it.

Day trading stocks and commodities is really a highly lucrative job. Just like a regular job, it needs you to have a number of traits in order to succeed, as well as a number of firmly ingrained habits.

Habit number one is having a good sense of time. Anyone who can't get out of bed first thing in the morning or has trouble thinking before that cup of coffee is someone who will only be made miserable by day trading. The best time to assess the way you should play the market today is right before the opening bell. That's at nine in the morning in New York Cit, or six am in California and five am in Alaska and Hawaii. You can't just be an early riser. You also have to have a great internal clock and a good scheduling system.

Habit number two that you'll need is having a good set of skills for quantitative thinking. You'll make or lose money in day trading just by operating on gut instinct. Making informed decisions, on the other hand, requires you to be able to look at numbers and understand them completely without even thinking about it. This means that numeracy and the ability to deal with numbers in your head is vital if you're going to tell whether something's a blip or a trend, and deal with it correctly.

I should point out that you don't have to be a mathematician to do this. You can learn how to analyze the numbers correctly, even if you're not fond of math. There are quite a few numerical skills that can turn into second nature, as long as you get well into the game.

Successful day traders also have to have patience and skills of observation, and combine them with a short memory. This can be pretty hard to learn, since you have to avoid feeling disappointment when you don't catch a stock at the top, or when you lose money because the short you're intending just never shows up. Don't get caught up in things when you lose, and don't allow winning to take over your life, either.

Dedicated research is habit number four. You won't have to consume accounting statements the way someone in long term conventional investing does, but you have to constantly be getting new data and analysis. You also have to be proactive about your buying and selling, and make fast, accurate judgments, then act on them just as quickly. The only way to make the correct decision is to have the right research. Just don't let it paralyze you.

Remember that you don't actually have to analyze most of this data or do most of this research. That's because the best traders have access to plenty of tools, including a number of different data services and research tools.

If you're interested in starting in day trading as a career, you'll have to get the right support, too. You need a good broker, and some other investors who are willing to help you use leverage on the market. Remember that what you're doing is work, and that you need to have focus and a strong will, as well as being smart, to make it work.

If you believe you've got what's needed to be a day trader, it could be a great way to make a significant income. This is a job you can seriously call fun, if you have what it takes, and it could be pretty enriching, too.

About the Author:

It's my goal that this day trading advice motivates you to enter into this profitable venture. Click Here to learn about a proven trading strategy that is proven to deliver great returns!

Learn More About Refinance Mortgage Loan

By John Bear

Everyone knows that comparing lenders can help you find the best refinancing deal, but those numbers can get confusing, especially when you are comparing lenders. You should investigate rates, fees, and points. Remember too that just because a mortgage company has the lowest rates, it doesn't mean that they have the best deal for you.

Many financing companies will post their rates online. Lower interest on an ARM or fixed-rate mortgage can be tempting, but have a look at the fine print. What points or fees are usually required for the rate? Mortgage lenders lure consumers with low initial numbers, only to have high closing costs. A better number to look at is the APR.

The annual percentage rate or APR is required by the federal law to be disclosed to consumers before signing any contract. The APR includes the mortgage's interest rate and closing costs, and this gives you an accurate idea of the total cost of the refinance mortgage loan.

Just like your original mortgage, the refinanced mortgage also has closing costs. Standard fees include the origination, appraisal, and closing fees, while points can be required for a low-rate security. So just by looking at the APR, you can actually figure which lenders are offering the best fees in relation to their rates.

When researching for a mortgage, do ask about penalty fees because early payment or late payment fees can get really pricey. So there are some instances that you can waive part of these fees, such as an early payment, by paying a point at closing.

Depending on your situation, the lowest rate refinance mortgage loan may not be the best deal. For example, if you plan to move in a couple of years, paying points for low rates may not be able to save you money.

So before you decide to refinance, plan first on how long you will keep the mortgage and then compare the mortgage costs for how long you will have it, even if you take out a mortgage with a 30-year term that you plan to have for only a couple of years. Use online mortgage calculators to help you with the math.

Lastly, to find the best options regarding your refinance mortgage loan, request quotes for refinancing your mortgages together and separately. Also look at the other lenders to make sure you will get the best deal that is being offered. With proper research, you will surely end up with the best refinancing deal for your situation.

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