News, Events, Tips and Resources from The Jamisons
If you're dragging around bad credit scores, you'll pay more for car loans, credit cards and mortgages. Here's how to turn them around in a hurry. Plus: 4 credit mistakes to avoid.
There are different types of real estate, and different ways to invest in them. Which way is best is for you to decide, according to your particular needs. Here are a few ways to consider, with their advantages and disadvantages.
1. Rental houses. Advantages: One of the easier ways to get started, and good long term return on investment. Disadvantages: Being a landlord isn't much fun, and you typically wait a long time for the big pay-off.
2. Rent-to-own houses. Advantages: When you buy, then sell on a rent-to-own arrangement, you get higher rent, and the buyer is usually responsible for maintenance. Disadvantages: The bookkeeping is tricky, and most tenants don't complete the purchase (this can be an advantage too, but it does mean more work for you).
3. Low income rentals. Advantages: The same as with any rentals, but with higher cash flow. Disadvantages: The same as with other rentals, but with more repairs and tenant problems.
4. Fixer-uppers. Advantages: A quick return on your investment, and it can be more creative work. Disadvantages: Higher risk (many unpredictables) and you get taxed heavily on the gain.
5. Buy for cash, sell for terms. Advantages: You get a high rate of return by paying cash to get a good price, and selling on easy terms to get a high price AND high interest. Disadvantages: You tie up your capital for a long time.
6. Buy land, split it and sell it. Advantages: It is simpler than most real estate investments, with the possibility of great profits. Disadvantages: It can take a long time, and you have expenses, but no cash flow while you wait.
7. Boarding houses. Advantages: You can get a lot more cash flow renting a house by the room, especially in a college town. Disadvantages: You can get a lot more headaches renting a house by the room, especially in a college town.
8. Commercial real estate. Advantages: Long term triple-net leases mean little management and high returns. Disadvantages: Tough market to break into, and you can lose income on vacant storefronts for a year at a time.
9. Buy, live in it, and sell. Advantages: The new tax law means you can fix it up, and sell for a big tax-free profit after two years, then start the process again. Disadvantages: You have to move a lot.
10. Speculation. Advantages: Buying in the path of growth and holding until values rise can yield large profits, especially if you buy low to start. Disadvantages: Prices aren't that predictable, you have expenses with no income while you're waiting, and transaction costs can eat much of the profits.
Good luck and don't hesitate to contact us with your questions.
Kevin & Darlene
Whenever we are in need of money we look out for different loans. The market is full of various kinds of loan but the most preferred loan is secured loan. Homeowner loan is a secured type of loan i.e. to avail homeowner loan one has to keep his home as collateral against the loan amount. A house is called an asset and this is because in future it can help you to solve your financial troubles, this is how the homeowner loan works, if you own a house you can always keep it as a security and in return can borrow a huge loan amount.
There are several repayment methods in homeowner loan interest only method, partial interest and partial repayment method. The rate of interest can be fixed or variable the way borrower wants.
Homeowner loan comes with lots of advantages such as;
Large loan amount: as the homeowner loan is secured in nature therefore the lender feels secured about the repayment and as a result you can borrow a very large loan amount, at times it may even surpass the value of the collateral.
Low interest rates: the rate of interest in homeowner loan is very less as compared to the other kind of loans.
Tenure of loan: the time period of the loan is very loan in homeowner loan it might lengthen unto 25 years. Owing to the long repayment period the monthly installment goes down and does not upset the borrowers monthly budget.
Flexible terms and conditions: in homeowner loan the terms and conditions are very flexible, a lot of issues can be negotiated according to the borrowers convenience.
The borrowers credit history also affects the interest rate, borrowers with good credit history have to pay low interest rate for the same amount as compared to people with poor credit history. People with negative credit history are generally not eligible for any kind of unsecured loan hence by getting bad credit homeowner loan such people can solve their financial problems. In such cases if the initial payments are on time then the lender may possibly bring down the interest rate. A credit check will be done, but your lender can offer you the loan you need and give you various options.
There are lots of lenders offering homeowner loan, but you must choose the correct way to select the ideal loan for yourself therefore there are certain things you must take care of before taking loan. Firstly, you should shop around and select the lender who gives you the lowest interest rate and best repayment terms; homeowner loan is usually taken for long time period therefore even lowering of little interest rate will make a lot of difference in the long run. Secondly, the borrower must assess his income and then fix on on the loan amount that he can comfortably pay back. Thirdly, since in homeowner loan the collateral that one offers is the same hence you should compare the proposals of different lenders and then select the one who offers the biggest loan amount with finest terms and conditions.
Fourthly, the borrower should have clear idea about the amount that he has to pay every month, various fees (if any) that he has to pay and the method by which the interest rate is calculated.
The foremost way of searching the ideal homeowner loan for your self is through Internet. By surfing the websites of various lending companies you can compare the rates, schemes and policies of various lenders and then select the best lender. It is very beneficial to search for homeowner loan online as this will save a lot of time, money and energy and you can get the best information by sitting in one place.
While many people believe that getting their bad credit repaired can only be done through a professional agency, this is simply not true. By going to a credit agency, you might find that it takes a great deal more time and money than if you just worked on it yourself. Before you get in touch with a professional credit repair service, refer to the steps listed below, and you might find that repairing your own credit is not that difficult at all.
When you repair your own credit, you must understand that it is a lengthy process that requires patience. The first thing you need to do is contact credit reporting agencies in writing, and request a copy of your credit report. Federal Law states that everyone gets a free credit report annually. You can locate the three main credit-reporting agencies that you will need to get in touch with by performing an Internet search using the terms “Credit Reporting Agencies”. You might also consult your local phone directory.
Contact the agency in writing, and include the following information in your request:
1. Request a free copy of your credit report.
2. A copy of your state identification (such as your driver’s license)
3. Copy of proof of your current address (such as a utilities bill showing your home address)
4. Provide your previous addresses for the past 5 years.
5. A copy of your social security card.
6. Make sure you close the request with your signature.
Your credit report should take approximately 4-6 weeks to be generated and sent to you. If you receive a letter denying you credit, make a copy and enclose it with your written request for a copy of your credit report. If you have already received your free annual credit report permitted the free yearly report, you can use a denial letter of credit within 60 days of its receipt.
When you receive your reports from the agencies you contacted, look over each report for accuracy and discrepancies. Create a log in order to track the differences. If you find invalid accounts or errors in your reports, do not hesitate to file disputes. If you need to file a dispute, most agencies provide the forms to do so via their website. Each credit report should provide contact and account information for each creditor. Keep a log of all your debt information and creditors. Most debts older than 7 years old probably won’t appear on the report, and if so, leave them alone. Most creditors after 7 years will write off the debt, though some might continue to pursue you. Whatever the case, don’t open the Pandora’s box if the account isn’t listed on your credit report.
The next step is to contact each creditor to make payment arrangements. Most of them will be willing to work with you, while some might not be so agreeable. If a creditor is being difficult, feel free to ask for his or her supervisor or speak with someone else. Expect some creditors to be rude and unwilling to work with you. Try no to feel discouraged, be persistent, and ask to speak with someone else. Offer a settlement amount. Keep a written log of the conversation, including the person’s contact information each time you speak with a creditor.
It can take as many as 6 months to feel like you are making headway on your credit repair, but rest assured that your credit will get better within a year or two.
It is very important that while you are paying off your debts that you pay by check or money order and retain all receipts. Make sure that you request a receipt for the payment from the agency.
Continue to obtain copies of your credit reports annually from each agency. Do not create new debts while paying off your current ones. If you receive credit offers, throw them away. Remain focused on your goal to get out of debt and document your payments, contact with the creditors, their names, extension, time and date you spoke with them and list any pertinent detail regarding your conversations.
Just do it!
Loans For Low To Moderate Income Buyers
The Federal Housing Administration (FHA), an agency of the Department of Housing and Urban Development (HUD), provides several mortgage loan programs for low to moderate income home buyers. FHA loans offer market rates with a lower down payment requirement.
FHA loans require a minimum down payment of 3%, cash to close the loan, and an acceptable credit score. Closing costs can be part of the loan amount, and credit score requirements vary with programs.
To apply for a FHA loan, you must submit an application with a HUD approved lender. Most traditional lenders already are approved by HUD.
Loans For Veterans
Loans guaranteed by the Department of Veterans Affairs (VA) are available to most veterans and service persons. Usually these types of loans do not require a down payment and have more favorable loan terms. VA loans do not have a maximum amount, but lenders typically limit the loan amount to $359,650, the conforming rate.
To apply for this type of loan, you must be qualified by the VA. Once they approve your application and verify your qualifications, they will issue you a certificate which you present to a traditional mortgage lender as part of your application paperwork.
Loans For Rural Residents
The Department of Agriculture also backs loans through its Rural Housing Service (RHS). RHS loans require no down payments, but you must be able to afford monthly mortgage payments and have an acceptable credit history.
RHS also offers direct loans to low income family, those with income 80% or less than the area’s average income and cannot get credit from financing companies. These mortgage loans can be extended to 38 years and require no down payment.
Apply For Government Assistance
Government mortgage loan programs enable you to avoid mortgage insurance and secure financing to buy a home. These programs are offered through traditional lenders, which can easily be found online.
To learn more about FHA Loans, visit this page: Federal_Housing_Administration
Wanna know the best advice ever you can get about money?
Here it is...
Let's say that you are getting regular monthly salary from work and you are happy with it. Now, at the end of the month (and most of the time, two days after you get your paychecks), you wonder where all your money is gone.
You begin reasoning.
30% of it goes to house mortgage.
20% of it goes to car payment.
10% of it goes to credit card payment.
5% of it goes to utility bills.
etc, etc, etc...
"That should be fine. I've got it all taken care of. Next month, I'll get another paycheck and the same cycle goes on and on... enough for me to survive the whole life."
Well, you gotta be careful with that thinking.
What happens if your car broke down?
What happens if your kitchen needs renovation after a heavy storm?
What happens if you suddenly forgot that you've overspent your credit card?
What happens if you fell sick?
Things could be worse, and now is the time that the cliche "Fix your roof on a sunny day" is very much true to you.
You don't want this to happen to you, right?
There could be thousands of things that could go wrong in our lives but unless we realize that we need to prepare for the worse, we'll never get ahead of ourselves.
Sometimes, fixed salary could be a good thing for you because you can plan with what you want to do with your money on a predicatble basis. Though we strongly believe that you still need a secondary income - preferably a recurring secondary income - to improve your financial situation at any level.
And, the best plan to improving your financial situation is...
PAY YOURSELF FIRST.
That's right! We received this invaluable tip from our insurance agent over 20 years ago and never forgot it.
Regardless if you have $300,000 of house mortgage or a $100,000 savings in the bank, make it a habit to pay yourself right after you get your monthly paychecks. This habit will definitely help.
You've been paying everybody you owe every month. You pay the bills, the banks, the mechanics, the who knows who and you actually get nothing, except settling the scores.
There's just another person that you forget to pay - that is YOU.
Imagine yourself as a bill collector on yourself. No matter what, you have to pay yourself at the beginning of every month (we suggest 10% of your salary. The more is better) - or else you cease to function as yourself.
Never fail to pay your SELF and only after you pay yourself, then you pay the others.
Yes, at first, but once you put the action of "Paying Yourself First" into habit, you'll actually enjoy doing it, knowing that you do good deeds to yourself.
Try it once. Then do it the second month. And then, another... and another.
PAY YOURSELF FIRST because you deserve much more than the other bill collectors.
One of the most important aspects of any home that you move into is, without a doubt; the area. Homes may look fantastic online, but there is always the possibility that the area this fantastic home is in may be less than desirable. Before you move to any new town, subdivision or city, its a good idea to do a little research and find out as much as possible about the place that you are considering calling home. The logical place to start asking questions is to your realtor. Whether you are moving from a distance away, out of state or even out of country you may want to try to find a realtor that specializes in the area that you are interested in. Realtors are a great source of information and usually they know more about a given area than just about anyone.
In finding out about a new area there are some definite things that you will want to find out about. Start by finding out about the area itself. Is is an industrial town? Tourism Based? What kind of atmosphere can you expect when moving there? The next things that you should consider are the employment market and the education system. It's always comforting to know what kind of job environment is in the area you are moving to. Is there room for your career to flourish? Additionally, even if you do not have children, knowing the education system is just a good idea. It is one of the things that people usually consider important in a new town, and if you have to move again; a home in a good education district will fetch a higher price.
Try to find out what the future hold for the area too. This can usually be accomplished by talking to your realtor, but also seeking info from the city itself. Find out if there are any development or expansion plans for the area. Things like proposed developments, both residential and commercial can drastically effect your property values. You will always be well served to stay cognizant of the future of any area that you move to. Keep in mind that potential developments and future plans can make or break an area, so the more info you have at the beginning the better.
In simple terms, credit means that you are going to use the money of someone else to pay for your own things. By taking a credit, you owe to repay the creditor with the entire amount with some rate of interest. It happens that when you want to take some sort of loan or credit, any financial company shall look into your credit history and the credit worthiness to understand whether any financial risk is involved in the deal. Such agencies decide the terms and conditions for granting the loan based upon the financial soundness and good credit history of the person.
Common credit mistakes
There are some credit mistakes made by people that lead to a bad credit score and financial stake avoiding which you can ensure reduced credit debts too.
1. If you use very expensive credit cost that are not much desired then it shall affect your credit score negatively.
2. Don’t carry too many credit cards that shall make your credit report to state that “there is too much credit” degrading your credit worthiness.
3. If you are paying only minimal dues then it shall raise your credit balances very high.
4. If you take much cash advances, it shall cost you high rate of interests and some additional fees too.
5. Never exceed your credit limit that shall make you entitle to pay some over limit fees and shall influence your credit score badly.
6. Try to pay your credit balance on time failing which you shall have to pay unnecessary late payment fees leading to high interest rates.
7. Don’t charge more than what you can afford as this will create amassing debt that you won’t find easy to pay off later.
8. Never let others to use your credit such as cosigning a loan because this shall make your credit report state “too many consumer accounts” and will adversely affect your credit score.
9. Don’t ignore your credit problems as this will lead to unwanted negative affect on your credit score. Instead talk to your creditor before you are late and make necessary arrangements.
10. Don’t fail to report any change in the address to the creditors so that there are no misplaced bills and late payment.
11. Always use your full legal name and don’t confuse your creditors with partial names and initials.
12. Check your credit report frequently so that you are clear with all your credit status.
For more information research "Credit Card Debt Consolidation"
The best homeowner insurance is the insurance that best meets your needs. The insurance shopper that takes the time to understand the basic elements of home insurance will have much more confidence and sense of satisfaction when making an insurance purchase. The homeowner policy has been around for a long time and so most of us have a general concept on how the policy works. The more you know about the market value of your home and the approximate cost to rebuild it the better off you will be when shopping for the homeowner policy.
This kind of knowledge is the foundation for determining what kind of policy to purchase. The age of your home has a direct bearing on the market value. The older homes built in the 1900’s have much lower market values today because most of them have depreciated. The market value for an older Victorian style home may be $50,000 but the actual cost to rebuild that home may be $200,000. The older homes that depreciate in market value are insured with actual cash value policies. They are often called market value policies. These policies will reimburse you for the market value of your home when there is a total loss. The market value policy is the best homeowner policy for the older home that has depreciated.
The replacement cost policy is better designed for newer homes or homes under construction. The replacement cost of a home and the market value are almost the same. Replacement cost is applied to the dwelling and most often to the contents of the dwelling. Replacement cost will repair or replace any loss with like kind and quality of materials without depreciation.
The best homeowner insurance for you will be determined by the age and market value of your home. The discounts for older and newer homes are the same. The protective device discount for deadbolt locks, smoke detectors, and fire extinguisher apply to both types of policies. Fire and burglar alarm systems are additional discounts that could be applied to both older and newer homes.
Be sure to contact several companies and ask a lot of questions.
Offers for home equity loans are widely advertised. Lending institutions make it a point to highlight the advantages any potential borrower shall have in getting this kind of loan. One reason for the aggressive offer is that, with the home equity as collateral, this kind of loan is safer business for the lender than the credit cards.
The aggressive campaign sometimes makes the potential borrower think only of what are highlighted and forget, to their regret later, the so-called fine print in the loan terms. In putting the house at risk, the owner-borrowers owe it to themselves and the family members to make sure they are making a decision they can handle.
The biggest risk of a borrower is the lack of understanding of the loan terms. Here are some of the information any borrower should take time to be well versed of:
Tips to the Borrower:
* Have a clear idea of the reason for the loan. Is it a one-time or ongoing financial need? This is needed to decide if the loan should be Fixed Rate or HELOC (Home Equity Line of Credit). Be sure to choose the appropriate loan package.
* It is a good idea if the take out would go directly to the party whom you want to pay with the loan. This would minimize the risk of spending the money for something or somebody else.
* Ask for an official list of fees and interests before going further with the loan negotiation. Some agents conveniently fail to mention some fees like the closing costs and prepayment fees. Closing costs and prepayment fees are important information just in case the borrower decides to make advance payments later.
* Be wary of scams. Some lenders may appear to be assisting the borrower to have a good deal by approving loans that are more than they can afford to pay but actually, the borrower is being led to the road of payment default and consequently foreclosure.
* Research before signing anything. Contact people who have taken out loans from the lender. The Better Business Bureau is a good source of information regarding good business practices.
* Don’t be misled by the low amortization. It may not even be enough to cover the monthly interest and the consequent is a surprise after years of payment that the principal of the loan is not yet paid.
* Don’t be afraid or ashamed to ask about anything that is not clearly understood. In fact, any items that seem to be subject to interpretation should be confirmed with the lender.
* The Truth in Lending Act gives the borrower the right to cancel the loan by informing the lender in writing within three days of issue.
The home equity loan is an excellent and tempting source of cash for the home owner. The lenders consider it a safe investment but the opposite applies to the home owner.
Yes, there are advantages like the tax-deductible, lower-than-the-credit card interest and the convenience since you can apply on line and agents are eager to do business. However, the collateral’s value is more than what the appraiser reports. The appraiser has no idea of the true value of a home.
If ever a home owner finally decides to have that home equity loan, it should only come after a careful study of the pros and cons of the decision. Please feel free to contact us with any questions or to apply for a loan.
Thanks for reading!