Fixed Rate Possibly Better than Adjustable in Reverse Biz

By Matt Vanrock

Suppose a borrower came to me 1 yr. ago with the question: "Should I go with the adjustable or fixed rate?" My reply in most situations would be that the adjustable rate is the way to go.

But since lenders in reverse mortgage backed securities are wanting more payoff than ever, people in the mortgage industry are beginning to think twice about this.

Rough 14 months ago the margin banks and investors in mortgage backed securities needed was one percent. Margin is simply the profit in the loan.

To give an example the borrower may have gone with an adjustable rate mortgage with an index of one percent. If the margin was an additional one percent the actual loan rate would have been 2%.

Well, margins are on the rise since this time last year. By March they went to one point five percent and by October one point seven-five percent.

Well, it's on the move again. It appears Fannie Mae is telling us preemptively that the expected margin next week will raise up about one half point next week.

I won't get into a litany of reasons why the adjustable is a better all around reverse mortgage than the fixed. It is, but certain circumstances make the fixed more attractive right now.

One example is if the borrower cashes out all or the vast majority of the total a possible loan immediately.

Let's say the lender will allow the borrower to cash out a large number like $200,000. If the seniors takes it all the fixed may be better than the ARM. The reason is the fixed rate is roughly the same as the fifteen year average for the ARM.

Right now the ARM is very attractive because it's squatting down extraordinarily low. It's teasing people, but this won't last forever and it will come up to meet the average.

One other benefit to the ARM over the fixed was that lenders were giving substantially more money on the ARM. This number is not nearly so profound today.

The ARM used to be a no brainer in terms of how much money it gave a borrower rather than the fixed. It's far closer now and one never knows. Perhaps after the change the fixed will give more.

We don't know quite yet, but the fixed rate is gaining on the ARM.

About the Author:

To know what the heck your talking about go to the Texas reverse mortgage info link. Also, Flood your mind with education by heading to the Texas reverse mortgage website.

UK Instant Approval Payday Loan

By John Lonshot

This article looks at the way banks exploit customers with NSF and overdraft fees. It contrasts this with the other option known as payday or cash advances and proposes that these are in fact cheaper than bank fees. It goes on to show how banks lobby aggressively against the payday industry fearing cuts in there fees. The findings are based on a US study by the federal government and is freely down loadable.

An independent agency of the federal government, the FDIC was created in 1933 in response to the thousands of bank failures that occurred in the 1920s and early 1930s. The commission is managed by 5 people who constitute a board of directors. They are all appointed by the President and confirmed in the Senate. No more than three can be from he same political party.

In 2006 legislation allowed banks to apply automated overdraft programs - much to the detriment of consumers. This is a system where the bank honors customers obligations using computer rules to determine non-sufficient qualification for overdraft coverage. Data and information were gathered through a survey of a sample of institutions representing 1,171 FDIC-supervised banks, and a separate data request of customer account and transaction-level data from a smaller set of 39 institutions.

The Federal Deposit Insurance Corporation (FDIC) published the results of a two year study on the use of overdraft programs operated by FDIC-supervised banks. The study found that a typical NSF check can result in overdraft fees and interest in excess of 3,500 percent APR. Customers in low income areas were more than likely twice as certain to incur these fees.

The FDIC study reinforces the payday loan industry's position that short-term cash advance loans are significantly less expensive than traditional bank overdraft fees. The study also found that, unlike payday loan companies that offer on-demand products, most banks (75.1 percent) automatically enrolled customers in overdraft programs that carry APRs and other fees far more expensive than the typical cash advance loan.

The study concluded that a typical customer would incur fees of $27- for each $20 overdraft over a 2 week period. A $60- ATM overdraft in 2 weeks would incur an APR of 1,067 percent. A customer repaying a $60 ATM overdraft in two weeks would incur an APR of 1,173 percent and a customer repaying a $66 check overdraft in two weeks would incur an APR of 1,067 percent. Oddly enough the faster one pays down the overdraft the higher the APR turned out to be.

Consumer advocacy groups like the Center for Responsible Lending (CRL) have lobbied to ban payday lending, leaving consumers with no option other than to pay overdraft fees to banks and credit unions. CRL have led a charge to pass a law banning payday lending in Ohio. In 2006, Ken Compton, CEO of Advance America, said, "Contrary to the CRL's spin, responsible uses of the payday product provides consumers firm footing to overcome unexpected financial circumstances,".

Some key findings;

Over 90% of banks completed overdraft fees without informing the customer.Less than 8 percent of banks inform consumers that funds are insufficient before transactions are completed, offering the customers an opportunity to cancel the NSF transaction and avoid a fee.

Bank customers complaints about overdraft fees were received by twelve percent of banks.

Almost 9 percent of consumer accounts had at least 10 NSF transactions during a 12-month period. Nearly five percent of customers have 20 or more NSF transactions. Customer accounts with 20 or more NSF transactions were charged $1,610 per year in NSF fees on average.

About the Author:

Marsha Smythe is intrigued by the concept of APR and how banks can get away with charging such high amounts. He makes available on his blog downloads from the Federal Deposit Insurance Corporation (FDIC). These are a must read for anyone contemplating overdraft versus same day loan. Although US bank orientated the same rules apply to both UK same day loan and Canada payday cash.

Mesa Mortgage, an Arizona Mortgage Company

By Brent Mackelprang

What are you waiting for? Refinance today for less? Mesa Mortgage, a premiere Arizona mortgage company has a question for you; what's preventing you from refinancing today? There is a lot of talk about the current state of the economy, and of course there are many concerns about it, but what you may not know is that now is a great time to refinance! Mesa Mortgage, as an established Arizona Mortgage company is able to assist you with your refinancing with rates that are lower than the national average! Low rates that will save you $1000's!

Over the past few decades Mesa Mortgage has established itself as a trusted and respected Arizona mortgage company. Mesa Mortgage has obtained this very impressive reputation by establishing industry standards with unquestionable dedication to customer satisfaction. They are committed to ensuring your refinancing and mortgage needs are always attended to.

Often home owners feel refinancing is the only option they have and sadly, there are some Arizona mortgage companies who view this as a chance to persuade people to refinance even if it is not necessary. At Mesa Mortgage, our goal is to answer your questions and assess your situation to make sure refinancing is really your best option. And if refinancing is the best option, Mesa Mortgage, as an established Arizona mortgage company can do it for less.

Often individuals allow themselves to talk themselves out of refinancing when in all actuality refinancing is the best thing for them. Whether its concerns about interest rates, monthly payments, a lack of steady cash or another concern, it may be tempting to avoid refinancing even if it truly is the best thing to do. Mesa Mortgage will help you determine if it is the best thing to do.

As a leader among Arizona mortgage companies, Mesa Mortgage helps potential home buyers get into a new Arizona home more affordably and quicker. With the many reasons to pick Mesa Mortgage you will also find that Mesa Mortgage offers lower payments and lower rates. Plus, Mesa Mortgage's loan program determines the loan that will properly satisfy all your needs.

Mesa Mortgage makes applying for a loan or refinancing simple with their online application. By applying online you are guaranteed quick processing with up to date information available. Along with the online application, you'll find that Mesa Mortgage has rates that are considerably lower than many Arizona mortgage companies and rates that are always lower than the national average!

Mesa Mortgage offers a many kinds of different loan programs, including some loan programs other Arizona mortgage companies do not offer. At Mesa Mortgage you'll find great rates on High Debt Ratio loans, Challenged Credit loans, Jumbo loans, Second investor loans, Mortgage loans and more.

With the wide variety of loans available at Mesa Mortgage, some of which other Arizona mortgage companies are not able to offer, you'll also find Investor loans, FHA Mortgage loans, VA Mortgages, Construction loans and more. And at Mesa Mortgage you'll get the most competitive and appealing rates on all of their many loans.

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HUD Teases Seniors With Reverse Mortgage Home Purchase

By Veagure Vanrock

A few months ago, HUD announced 2 wonderful things regarding reverse mortgages. The first attention-grabber was that a home can be bought using the reverse mortgage.

Up until now all seniors could do with the reverse mortgage is refinance their current home.

But that's all changed. A reverse loan is now as functional as a regular loan, but the borrower does not have to repay the bank periodically. This is obviously a significant distinction to seniors.

Another part of the letter really threw me for a loop, in a very good way. HUD was allowing lenders to loan based upon the appraisal rather than the sale price. This was an amazing thing for me to read.

As it stands for reverse mortgage refinances, there are several different things the banks look at when determining loan amount, but the value of the home is number one.

The mortgagee letter stated basically the same thing for home purchases. What you should understand is home purchase mortgage loan to values are normally based upon the sale price or the appraised value, whichever is lower.

For a reverse mortgage purchase to be based upon value only sounded almost too good to be true.

Here's how it could play out. Say a borrower scrounges around and finds an amazing house really cheap. Its on the market for almost half of what it should be. In this circumstance, at closing the senior might not have to front anything out of pocket.

The thing about it is HUD is a pretty conservative group. Although their forward mortgage programs are fairly loose as far as credit and down payment is concerned they still require downpayment. They always seem to ask the borrower to anti up in some manner.

Well guess what? HUD agrees with me. It is too good to be true. They eliminated that clause and have reverted to traditional lending practices.

As a lender, I find it unusual how long it takes to get these Housing and Urban Development letters. I would expect them to have a myriad of attorneys checking these things up and down.

Believe it or not, this notice was released 60 days prior to the amendment.

In summary, the official basis of the reverse loan, when used to buy a new home, will be the lesser of the price or value.

About the Author:

What the heck is a California reverse mortgage and how you benefit and may be hurt, go here. Or take a little trip to this website for a fact filled experience about the reverse mortgage in California

How to Maximize Your Time with a Credit Counselor

By Steve Collins

Seeking the services of a credit counselor is an intelligent way to find a solution to your financial problems. An experienced credit counselor has a full arsenal of suggestions and strategies to assist you in making the most of your income and modify your spending habits as you work towards reducing and eventually eliminating your debts.

A key to making the most of your time with a credit counselor is to have certain pieces of information in hand prior to your first meeting. Being ready will help you both avoid wasting time on activities that could have easily been done on your own such as making a list of your expenses and income.

The first thing a credit counselor will ask you is how much you make and how much you spend. The answers need to be exact so that your counselor can help you work out a budget that is actually achievable. As any good credit counselor will tell you, its easy to underestimate how much money youre actually spending every month, so dont simply estimate it. Take a moment to look over a few months worth of bank savings and checking account statements and all of your credit card and store card statements. Try to use the average of at least the last three months to get as accurate a picture of your true spending habits as possible. This is precisely the kind of information your credit counselor will bank on to give you the best help he or she can.

If your income fluctuates because you're self-employed, work on commissions, or get bonuses from time to time, find an average for the last 6-12 months. Again, this is a more accurate picture of your actual income numbers, which will greatly improve your chances of maximizing your time with a credit counselor. Having this information in hand before your first meeting with the credit counselor will mean you can move on to the advice portion of the meeting much faster.

Finally, it is a good idea to write out any and all questions that you may want to ask the credit counselor the night before your meeting so that its still fresh in your mind during your session. Remember " there is no such thing as a stupid question when it comes to finding ways to improve your financial situation!

About the Author:

Steve Collins is a writer and journalist. In these trying times, he knows the importance of obtaining effective debt solutions if necessary. Read his article about debt solutions here.

What Is a No Teletrack Payday Loan?

By Chris Novaczek

Sometimes people who need a payday loan will look for what is known as a no Teletrack payday loan. No Teletrack payday loans are loans in which the lender doesn't pass the applicant's data on to the company called Teletrack. What Teletrack does is measure risk for the lender. Since sub-prime borrowers are not always the most reliable in terms of repaying loans made them, it is in the payday lender's best interest to use Teletrack. Information which is analyzed usually includes rental history, court/bankruptcy records and employment info.

Since many people who need a payday loan obviously will often have bad credit records, they may look to subvert the Teletrack system. Even though the Teletrack system most likely allows leniency for individuals with bad credit, some may assume that it does not. On the other hand, obtaining a loan from a lender who offers no Teletrack payday loans is not guaranteed if the applicant's records show they might be unable to repay the loan. Since there are no guarantees a person will obtain a loan regardless of whether a lender uses Teletrack, the best course of action is to just apply and see if you are approved.

More opportunistic online payday loan companies often will not send applicant data to Teletrack for analysis. Since most data needed to verify loan eligibility is collected in a standard application, a lender can use their own judgment in determining whether to provide a loan. Teletrack is a convenience, not a requirement. Often it will be the smaller online payday loan lenders who do not use Teletrack because accepting more sub-prime applications allows them to remain competitive with the larger lenders.

The process of applying for a no Teletrack payday loan online is the same as applying for a regular payday loan. Typically a site will have a one page form which in which you will fill the requisite information. The more information you provide, the better your chance of securing a loan. For example if the form asks for two references, you should try and list two.

It may be more difficult to get a payday loan with bad credit, but it is certainly possible. If you're having a hard time getting a payday loan online, you just need to find a lender who offers loans with no Teletrack. You will be hard pressed to find such a service in a traditional payday store, so your best option would be to find a lender online. It should not be too difficult to find a willing lender in the competitive online market. Search around and you should find one in no time!

About the Author:

With several years of experience in the personal finance industry, Chris Novaczek is an expert on the subject of online payday loans. If you want learn more about no teletrack payday loans, stay tuned for more articles in this series.

Credit Cards For People With Bad Credit

By Gray Rollins

When you have had financial difficulties in the past, particularly credit card debt, it can be nearly impossible to get a credit card. It's a difficult position; there are many things which you can't do without a credit card.

Want to rent a car? Reserve a hotel room? Buy plane tickets online? You need a credit card for all of these and other activities which are part and parcel of ordinary life for many. Without a credit card, whole sectors of the economy are basically closed to you - it's a hassle and makes you feel like a second class citizen!

However, there is some good news. Even if you have bad credit, it is still possible to get a credit card; there are a couple of options available to you no matter what kind of credit history you may have. These credit cards come with some conditions and charges not associated with traditional credit cards, but they can help you to participate more fully in the economy and can also help you to rebuild your credit.

People with poor credit histories can try cards such as the ones offered by many credit card companies to those who would not otherwise qualify; these card have annual fees and APRs which are higher than other offerings, but for many, the chance to rebuild their credit and have the convenience of a credit card make these a worthwhile cost.

If your credit is in especially poor shape, another way to get a credit card and start rebuilding your credit is to get a secured credit card. There are some limitations on these cards (a low spending limit, basically) as well as a deposit which you'll need to make in order to receive the card. This deposit is generally pretty low - a few hundred dollars, typically. These are one of the best options for people who cannot get a traditional credit card.

Yet another kind of credit card for those with bad credit is prepaid credit cards. A prepaid credit card is used just like a traditional credit card, with the difference that they are tied to an account which you must deposit money into before using the card. These are nice since it is impossible to spend more than you have put into the account - so you can't get yourself into debt.

These prepaid credit cards do not have all of the advantages of traditional credit cards, but they do allow you to have access to those transactions which can only be done by credit card. These cards are a good tool for those rebuilding their credit and trying to keep a handle on their spending as they do so.

It's hard to get yourself out of a bad credit situation. These credit cards for bad credit be the tool you need to rebuild good credit while offering you the convenience you need. Just be sure to use your credit card in a responsible way.

About the Author:

Get our top recommended credit cards for bad credit at CreditCard4BadCredit.org.

Green Dot Visa - Review

By Dan Moskel

The Green Dot Visa is a prepaid debit card. Often this is used by individuals that do not have a bank account.

Card holders get free direct deposit, which can save hundreds of dollars a year on check cashing fees. It is accepted world wide.

There is a monthly maintenance fee of $4.95 however if you deposit $750 or more monthly this fee is waived. There is no credit check or bank account required for approval.

It is accepted over the phone and online. Your cash can be accessed at 900,000 ATM locations in 120 different countries.

There are however some criticisms of this card such as; the number of fees and poor customer service. There is a reload fee of $4.95 when you use MoneyPak.

These are purchased at retail locations such as; CVS, Walgreens, The Pantry, and more. You will also have to pay a $2.50 ATM fee and a $9.95 activation fee.

It is issued as a Visa or MasterCard through the Columbus Bank and Trust Company.

They do offer an upgrade to your account for Premier Membership at a cost of $20. This will give you priority customer service.

Upon completion of your application you will be mailed a card in 7 - 10 business days. You can also purchase this card at many retail locations.

It is commonly used by parents to teach children financial responsibility. Additionally it is a convenient method of providing financial assistance to students that are away at school.

Your money will be protected if your card is ever lost or stolen. It is a much safer alternative than carrying cash.

You use it to pay your bills. Additionally it will give you a convenient way to track your spending and stay within a budget.

In sum we do not suggest this card, we are surprised that there are extra fees for priority service. We are under the opinion when it comes to your money you are entitled to priority service.

About the Author:

We suggest the prepaid Account Now Visa www.accountnow.com for a review visit us or for a review of the prepaid Baby Phat Rush Card.

Taking Out Personal Loans When You Have Bad Credit

By Trinity Taylor

If your credit score is on the floor, it's going to be pretty tough to find loans. Frankly, you're a risk to lenders and this means some of them won't want to take a risk on you. The further in debt you get, the more your credit score will worsen and that will make it harder to get loans.

The tricky catch is that you need lending to be able to increase your credit score, but if your score is too low, you cant qualify. It might seem hopeless to ever receive lending again. Personal loans can sometimes help people in this kind of position. They are a quick source to borrow money that doesnt use your credit history as a qualifying factor.

With these loans, you can borrow anywhere from a few hundred dollars to a few thousand dollars. The amount you qualify for might be enough to help you lower your monthly credit bills by consolidating debt. It can put you in a more realistic position to make sure you pay your monthly bills. Being about to afford your monthly payments is key to improving your credit.

By making your payments on time, lenders will start to trust you more and more. They will lend to you with better rates and will also approve you more frequently. Once you have paid a few loans off in full, it will become a lot easier to get loans.

Some personal loans, known as payday loans, are given on a short term schedule. They usually have to be paid back within a few weeks. Usually, payday loan shops don't report to credit bureaus so using them won't improve your credit.

Some short term loans are great for improving your credit score, because the loan is paid off quickly. People with poor credit can often get these loans by providing some kind of collateral, or by getting a cosigner. Use credit now and you'll have an easier time qualifying for it later.

About the Author:

Trinity teaches people about find online personal loans with bad credit and about other types of bad credit personal loans.

Easy Tips On Home Loan Refinance

By John Bear

You might be a good candidate to refinance if you have a home loan, and you think that your property went up by ten percent or more in value, since you took out your current loan. It will help you save money on your mortgage payments, improve your terms, or even both.

When you take out a home loan, your home will be used by the bank as collateral for the loan. The more expensive the collateral, the lower will be the risk of the bank that you will default on the loan and walk away from that collateral.

So, if over the years, the collateral grows in value, the bank's risk is reduced and therefore you should be able to qualify for a lower rate. If your home went up in value by ten percent or more, banks will then consider your home loan to be a less risky investment, and would be able to offer you a lower rate. This is assuming that you kept the same job and income, made all of your payments on time, and your market interest rates are the same or lower.

Having a lower interest rate can benefit you in several ways. You can go for a home loan refinance and lower your monthly payments, or have your shorter loan term refinanced, and that would mean, you will be making the same monthly payment, but you will be able to pay off your home sooner.

Before having to home loan refinance, you will need to consider the cost of doing the refinance and then compare it to the savings. If it will be costing you $5,000 to refinance and your savings are only $25 per month, it will not be worth it, as it would take you over 16 years to just break even. But if your savings run at $250 per month, or 5 years worth of mortgage payments, then it would be a good idea to refinance your home loan.

Before you apply for any home loan it is important to request copies of your credit reports and carefully review them for any errors. If you find errors, you will have to dispute the mistakes with each credit agency.

Comparison shopping for a mortgage will really help you find the best home loan offer. The Internet is a useful tool for quickly locating and comparing mortgage offers, and you can easily screen mortgage loans from dozens of lenders with little time and effort.

One common mistake homeowners make when doing home loan refinance is rushing through and accepting the first promising offer they receive. When you take your time and learn mortgage terminology, you will then understand the home loan offers you consider. Remember, never rush into your financial decisions and you will be able to save yourself money and future headaches.

About the Author:

Student Debt Loan Consolidation, Mortgage Loans, Refinance Loans - Lowest Rates in Years. Go Here Now

Understanding Options And Benefits Of Trading Options

By Walter Fox

Recent fluctuations in the world of traditional finance have made Options Trading more appealing. Options Trading is attractive as a method of generating quick profits. Options Trading can be done with little up front and limited exposure to financial losses.

Options trading, when placed in the hands of skilled investors, can be very versatile. Options traders must be aware of the elements of risk and corresponding rewards for their specific options. Successful traders are known to have a systematic approach to investing with options.

The stock market is where options trading takes place. Options are not limited to stocks, however, they can be traded with other items as well. A variety of financial investment instrument types can be used with options trading, such as stocks, commodities, bonds, indexes, and currencies.

A Strike Price is the price selected by the options trader for buying or selling their chosen financial instrument on a future date. The Strike Price is important because it will determine whether or not the investor will purchase or sell their option.

Options can be used with a put (sale) or with a call (purchase). An options trader will decide to purchase or to sell their option based upon their own systematic approach to this type of investment. The decision to put or to call is important, and it relates to your strike price.

You would want to Put or sell your option when the strike price is higher than the price for your investment type. If your investment is below the strike price, the loss is limited to your put cost. The put gives you the right, but not the obligation, to sell your option.

A Call option is an option that gives a person the right to buy an item but not the obligation. When a person expects the price of the item in question to go up, they would purchase a call. Thus, if the price goes up, a call owner has the right to purchase it at a lower price. The call owner can also sell this option for a profit. And like a put, should the item in question not go up in price, the owner of the call is limited in their loss to just the cost of the call.

Investors who decide to purchase an option are limited in their amount of risk exposure. Selling an option will expose investors to the most risk. Selling occurs for approximately fifteen percent of all options, while the other eighty-five percent expire.

About the Author:

TheScienceOfTrading.com provides 90 free minutes of videos on option trading systems and provides a complete and detailed option trading course for beginners to experts.

The Truth About Guaranteed Payday Loans

By Trinity Thomas

People that won't get paid for a while but need money now often turn to guaranteed payday loans. Lending institutions that specialize in this type of loan can often get funds to you more quickly than other types of lenders.

If this is the type of loan you're going to get, do some good research before you pick a lender. If the service is legal in your state, you have probably seen quite a few payday loan stores around. If it's not, you probably haven't.

Finance charges on loans of this type can range anywhere from 15 to 30 percent of the amount borrowed in most situations. Since the finance charges can be quite large, youll want to only borrow what is truly needed. Youll also want to be sure you will have no problem paying the money back in full by the collection date.

Borrowers that are unable to pay the money back when it is owed, in most cases two weeks from the lending date, the interest will continue grow exponentially. The best plan is to be wise in the amount you borrow.

Some lending institutions will ask you to write a post-dated check covering the amount borrowed and associated fees. It is still your responsibility to go to the lending source in person by the due date of your loan and pay back the money. However, if you are negligent and dont pay back the money in person, they will most likely cash the check you left as collateral.

In order to avoid a ton of extra fees, make sure that you can pay back the loan on time. People often end up paying late fees, and sometimes bounced check fees from their banks because they don't have the funds to cover the post dated check.

While these loans are extremely easy to get, make sure that you're very careful. People sometimes get stuck paying thousands of dollars in fees and interest on a loan that was only $500. Make sure that you can pay off the entire loan with your next pay check.

About the Author:

Trinity teaches individuals how to get easy guaranteed payday loans and about many other types of loans for individuals with bad credit.