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Choosing The Right Loan

23 Feb, 2008 | General | admin | Comments Off

There are lots of different mortgage loans available out there today. It can be so hard to figure out which is best for you. Here are a few questions you can ask yourself, to help decide which loan is the best loan for your situation.

* How long do you plan to reside at the property?

If you are only going to be there for say, 1 to 3 years, then your should probably  look into a ARM or Adjustable Rate Mortgage.

If you plan to stay around a while, a Balloon loan is best for up to about 7 years,  but anything longer than that and you should check out a Fixed Rate Mortgage.

* Would you rather have a lower monthly payment or acquire equity faster?

If you are looking to minimize you payments, go with the 1-7 year ARM or the 30  year Fixed Rate.

If you are more concerned with building equity then a 15-20 year Fixed Rate  Mortgage will probably suite you best.

* How big of a risk taker are you?

If your are afraid of fluctuating interest rates, you should definitely take out either  a 15-30 year Fixed or a 10 year ARM.

If changes in the market don’t bother you, then by all means go with a 1-7 year  ARM or a 5-7 Balloon.

Once you can answer these few questions, you should have a better idea of which loan is right for you.


Auto Loans For Green Cars

16 Feb, 2008 | Auto Finance | admin | Comments Off

Unless you have been living under a rock, you know that green is the new rage, in cars that is. If you are looking for an auto loan, you may want to consider the benefits of purchasing a car that is better for the environment. The facts are in that these cars are great investments in the short and long term. Since many of them offer benefits to the purchaser, such as a lower amount of fuel costs needed and benefits to the environment, such as lower emissions amounts, they make an ideal investment. More and more auto loans today are being had by those that want to take advantage of these benefits.

Can you get auto loans for environmentally friendly cars? Without a doubt there are many loan options available to you today that can focus on these cars. What many find is important, though, is the cost. Today, costs for hybrid cars and other environmentally friendly choices are high, which means that many people will need to rely on low cost auto loans to purchase them. While manufacturers are currently working to make technology that is less expensive and much more effective, it may be some time before that becomes a reality. This means that auto loans may be the best bet for the green car buyer.

In terms of quality, durability over the long haul and in value overall, these green cars are seeing benefits across the board. While you may pay a bit more for the purchase of the vehicle to start out, you likely will pay less for it over time as you reduce the amount of fuel that you need to operate it.

Some bad credit auto loan lenders are specializing in these types of loans, in fact. So, if you thought you could not afford to go green with your vehicle and your poor credit history, chances are pretty good that you can!


The Credit Crunch Hits UK

12 Feb, 2008 | General | admin | Comments Off

Many analysts have seen this coming, to them it was a question of time, but for many individuals it has been a huge shock. Already the UK had a volatile property market, many people locked into medium-term low interest rate deals expiring in 2008, at one time planning to remortgage onto a new interest rate. But, the credit crunch arrived, and with it most lenders withdrew their low cost products. Worse still, new lending guidelines were introduced, anyone with a hint of bad credit is excluded from most mortgage deals.
So what does this mean? No longer can sellers expect quick house sales, and the likelihood is a potential meltdown of the UK property market, if mortgage lending availability does not increase, quite simply, the number of repossessions will be far higher than anyone predicted 3 months ago.
Some analysts are predicting that UK property prices will fall by up to 30% in the next 2 years, to many this is an extreme view, but there is a consensus starting to build suggesting that falls of up to 20% over the next 2 years is looking probable. Of course there will be regional variations, but one thing for sure, if you have a property that’s normally slow to sell, hold on tight, you are in for a very bumpy ride.
For those who are unable to meet ongoing mortgage payments there are some options available, one is to sell and then rent back their property. Companies such as RepayMortgage specialise in quick house sales by providing access to private property investors.


Bank Account Types

12 Feb, 2008 | Bank Accounts | admin | Comments Off

Banks offer a variety of accounts. So which is right for you? 

Basic Checking Accounts - give you limited services for a price. They may  charge a fee for writing checks over a certain limit or charge a monthly fee. Banks  require a direct deposit or minimum balance avoid fees. These accounts usually do  not pay interest.

Interest-Bearing Checking Accounts - the higher your balance the more interest you get. If your balance goes under a certain level, a fee is charged. These accounts offer unlimited check writing.

Money Market Accounts - pays a higher rate than a checking or savings account. Rates vary according to market conditions. These are insured by the FDIC. Money market accounts have limited check-writing. Minimum balance fees apply.

Asset Management Accounts - a checking account that many brokerage houses and banks offer. They have the convenience of one account for does all of your banking and investing. These accounts give you unlimited check-writing and a statement that documents your transactions. Many banks require a higher minimum balance to open this type of account. Annual fees may apply.

Passbook Savings - transactions are logged in a book. Lose the book and the bank will charge you to replace it. Passbook accounts are offered by banks, savings and loans, and credit unions. They have low interest rates and do not allow check-writing. Minimum balance fees apply.

Statement Savings - bank mails you a monthly or quarterly statement documenting your transactions. Minimum balance fees apply.


Bank Of New Zealand

8 Feb, 2008 | Financial News | admin | Comments Off

The Bank of New Zealand said last week that it looked like New Zealand may be headed for a recession, if not already at that point. With the world wide credit problems it seems inevitable.

People are already battling with the rise of mortgage rates and now the pressure is on with the lack of credit available. The Bank of New Zealand says the impact has only begun to be felt.

The Reserve Bank says it is not going to consider dropping the interest rates until the end of next year. Already, New Zealand has the highest interest rates in the Organization for Economic Co-operation and Development. Despite the dissolving economy, the Reserve Bank has raised interest  rates at least six times since the beginning of last year.

Now the bank is warning of a possible drop in housing prices. They claim that prices are at a point where they are set to go backwards for the rest of the year. The housing market is already at their lowest in seven years and going down faster than the Reserve Bank was expecting.

Finance companies have collapsed, losses are as bad as the share market crash of 1987. The price paid by tens of thousands of small investors is high.



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