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Sunday, July 20, 2008

Alat-alat Berat untuk Poyek Konstruksi

ALAT BERAT KONTRUKSI

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Alat-alat berat yang dikenalkan didalam ilmu teknik sipil adalah alat yang digunakan untuk membantu manusia dalam melakukan pekerjaan pembangunan suatu struktur. alat berat merupakan faktor penting didalam proyek, terutama proyek-proyek kontruksi dengan skala yang besar. Tujuan penggunaan ala-alat berat tersebut untuk memudahkan manusia dalam mengerjakan pekerjaannya sehingga hasil yang diharapkan dapat tercapai dengan lebih mudah pda waktu yang relatif lebih singkat.

KLASIFIKASI ALAT-ALAT BERAT

Alat dapat dikategorikan ke dalam beberapa klasifikasi.
Klasifikasi tersebut adalah klasifikasi fungsional alat berat dan klasifikasi operasi alat berat.klasifikasi tersebut adalah alat pengolahan lahan, alat penggali,alat pengangkut material,alat pemindahan material,alat pemadat,alat pemeroses material dan alat penempatan akhir material.

misalnya seperti :
Dozer,screper,motor grader,excavator,front shovel,backhoe,belt
dan wagon,loader,dragline.clamshell,tamping roller,pneumatic-tired roller,compactor,crusher,concrete batch plant,asphalt mixing plant,concrete spreader
dan asphalt paver.

Untuk fungsi operasi alat hanya dibagi menjaadi dua kategori yaitu Alat dengan penggerak
dan alat statis.
alat ini hanya terdiri dari :
Untuk penggerak adalah crawler atau roda kelabang dan ban karet sedangkan belt merupakan alat penggerak pada conveyor belt.
Untuk statis adalah tower crane,batching plant, baik untuk beton maupun untuk aspal serta crusher plant.

Sunday, July 13, 2008

How to Get a Car Loan




Hot Car Pics







Car loan calculator

Car loans are a major decision that people take. These loans are used for financing the purchase of a new car or a used one and are obtained as a lump sum amount. When people take car loans they would like to know about their monthly payments and the amount that they are supposed to pay towards the loan. These problems are solved with the help of a car loan calculator. Car loan calculators are simple electronic devices, which are used by people to plan while taking car loans.

With the help of car loan calculators people can determine the amount that they can afford to spend on their car purchase. These calculators are available free of cost on the Internet. With the help of car loan calculators people can determine the following queries:

• It can help you determine which vehicle would be better for you a new purchase or a used vehicle.

• You can calculate the cost of depreciation.

• You can determine whether to buy a vehicle or lease it.

• The type of loan that would be better for you.

• It can help you determine the term of the loan that you should choose.

• You can also decide with the help of this calculator whether you should take a car loan or finance your purchase with a home equity loan.

• You can also determine which would be better for you a special dealer financing or rebate.

• The car loan calculator would help you decide on the period for which you should keep the car.

• You can also determine based on your financial condition which vehicle would be mot suitable for you.





Let us see the different types of car loan calculators that are available. There are a number of car loan calculators available, which can be used from making simple calculations to taking decisions on the type of car and the finance that you should take for the car.

The simple car loan calculator works when the following information is fed in the system. The amount of loan that you want to take is decided by the margin money that the borrower would have decided to pay and the value of his previous car that he would have owned. Then you are required to feed in the interest rate that the lender would charge. Next the duration of the loan and other costs like the insurance, tax, the processing fee and the handling charges. After this information has been fed the Car Loan Calculator would be able to tell you the amount of monthly payments that you would be making towards the loan.

With a car loan calculator you can determine the total cost of the loan, your approximate monthly payments and the most appropriate financing option for you. The car loan calculators are available free of cost at any of the loan websites. You would have to feed the information asked and you can have the cost of the loan. Once you have done this you can also change the values to calculate the cost of other loans also.

The loan calculators have user-friendly software. However you should not get caught in any trap, as there are many lenders who would have such calculators on their website to promote their loans. You should use this calculator only for assistance. The offers by various lenders can be contrasted and compared by using this car loan calculator. When you have got offers from various lenders for these car loans then you can compare them and decide which would be the best offer for you. Besides the complicated calculators there are many comparison calculators that can be used. When comparing the offers you should have quotes from various lenders and the calculator would show you how much you would have to pay with each lender.

With the help of these car loan calculators you can easily make a decision that would suit your financial budget and you can get the best loan offer. If you have a good loan offer then you can also think of negotiating with the other lenders so that you can get a cheaper deal. While selecting a car loan calculator you should make sure that the calculator allows you to feed in all the information that is necessary to calculate the cost of the loan. The cost of the loans however should include the interest rate, the fees, taxes and insurance. The calculator should also have options of extra payments and if you miss a payment the penalty amount that you would have to pay.

With a car loan calculator you can decide on a loan that would suit your financial situations and you would also have the estimated value of the monthly payments that you would have to make with the loan offers. A car loan calculator is a helpful device for people who are looking forward to buy a car in the near future. The calculator comes with different features and is easy to use. You would just have to input all the required information and you can have the cost of the loan in front of you.

Saturday, July 12, 2008

car credit and cash




Bad credit auto loan is in style since decade and many lenders offer a range of cheap yet competitive secured and unsecured loans. With an estimated one in six people having a terrible credit history in the UK, lenders have specially developed a loan package for people of such background.A bad credit history can result from defaults on payment, bankruptcy, previous mortgage arrears, county court judgements (CCJ) or through difficult financial situation caused by redundancy or breakdown of a relationship. Bad credit auto loan can be obtained despite your horrible credit scores.

Bad credit auto loan can be secured and unsecured loans.

Secured bad credit auto loan:

A secured bad credit auto loan is secured against your property by offering collateral. The advantage of bad credit auto loan is that borrowers have to pay less interest rate as compared to unsecured bad credit auto loan interest rates. Payment duration ranges from five years to thirty years. So, it is convenient for the borrowers to pay off the loan early.

Car Loan With Bad Credit and No Down Payment Money Advice


Unsecured bad credit auto loan:

A Unsecured bad credit auto loan is not secured against any property. Interest rates of bad credit auto loan are on higher side. Loan process is fast and simple. Since bad credit auto loan is a short term loan, it is ideal for car financing.

Whether you borrow secured bad credit auto loan or unsecured bad credit auto loan, the motto is to get the best deal

Auto Loans
Get a free loan quote. It’s quick, simple and secure, with no obligation!

Even if you have bad credit, Personal Loans and AUTO LOANS are available for you at MoneyNowUSA.com. Money Now USA provides options for borrowers with good credit, bad credit or no credit.
Quick, simple and secure Car Loan Offers. Qualify for a used or new Auto Loan online in minutes.

* Options for borrowers with good credit, bad credit or no credit
* Rates as low as 5.75% for borrowers with good credit.
* Receive a response in just Minutes !

Auto Loans
Get a free loan quote. It’s quick, simple and secure, with no obligation!

Even if you have bad credit, Personal Loans and AUTO LOANS are available for you at MoneyNowUSA.com. Money Now USA provides options for borrowers with good credit, bad credit or no credit.
Quick, simple and secure Car Loan Offers. Qualify for a used or new Auto Loan online in minutes.

* Options for borrowers with good credit, bad credit or no credit
* Rates as low as 5.75% for borrowers with good credit.
* Receive a response in just Minutes !

Apply Now !

Bad Credit OK



What makes it a bad credit rating? These are late payments over an extended length of time or non-payment of an account. And this doesn’t matter what the reason for late payment is.


Yes bad credit ok, in fact with our flexible lender programs you can qualify for a loan even with past credit issues.

Ask about our great low rates for borrowers with good credit, or how to obtain cash loans for bad credit.

Personal Loans

If you are seeking a personal loan, we have the most flexible programs on the Internet. Get the money you need: FAST. No collateral is required! Quickly qualify for our personal loans: bad credit is no obstacle, get approved now! .....
Approval in 60 Seconds
$1001 to $15,000


All personal loan requests are confidential and secure. We offer an immediate approval process. Apply now for our no hassle personal loan and get your cash as fast as a few hours!.

No Credit Checks are required for personal loans $1,500 & Under ..................................



Low Rates 5-20 % APR
Bad Credit OK
BK Discharged OK
1-4 year loan term
Low Monthly Payments
Must be 18 +
USA Resident



Immediately access money to balance your budget, handle emergencies, consolidate bills, or just put money in your wallet!

Click on the Apply Now Button above to get your loan started. Just fill out the green application that follows, it's that easy! You will receive a free fast no obligation loan quote. Our Personal Loans require no collateral and even unsecured bad credit loans are approved.

New Lenders: We have recently added more bad credit lenders, to give our customers the best chance of getting the most cash, for the lowest rates. Our New system will automatically search for the best rates though our expanded lender network. With bank and installment loan providers, we now offer unsecured personal loans for consumers who have lower FICO scores. Apply Now.

Poor Credit Personal Loans $300 to $1,500 Get Cash as Fast as One Hour

Fair/Good/Excellent Credit Personal Loans $1,001 to $15,000 Fast as 24 Hours

Personal loans can be a great way to get over life's little financial bumps and enhance your credit rating. Go from Bad Credit Personal Loans to a great credit score with Money Now! USA.

Use our fast automatic system to find the best loan for your needs no matter what your current situation. Remember - applying for a Personal Loan will not negatively impact your credit score. So get your Loan started Now!



Bad Credit Auto Loans


Bad Credit OK

Need a Car Loan but have bad credit ? We have the most flexible lenders on the internet. Qualify for an Bad Credit Car Loan Online in minutes, even if you have credit problems. No obligation!



Fast Service

With our Quick Car Loan Application you have access to our nationwide network of Fast Flexible Auto lenders who specialize in providing Car financing regardless of your credit history - even if you have been turned down before. Whether you are searching for a new or used car loan we can help.

Bad credit would often result in the borrower ending up losing his home. Mortgage refinancing is the most appropriate solution for such borrowers.

It is often tough to find a mortgage refinancing solution with a bad credit loan. However, one should be really careful while searching for an appropriate online mortgage refinance lender on the internet. It is always better to shop around in order to find a suitable refinance loan offering lower interest rates. Online lender should be reputable and must have a good privacy policy so as to preserve the confidentiality of the customer and must provide outstanding customer service.

The most convenient means of getting a mortgage refinancing on bad credit loan is to use the home equity as collateral. These mortgage refinance loans are considered as debt consolidation loans and are usually offered at higher interest rates than the conventional loans. If the home equity value is considerably more, it could also be used for obtaining cash on credit in order to pay off other higher interest debts. A debt consolidation loan is a useful option as it carries lower interest rates and higher repayment terms.

However, there are certain disadvantages. Borrowers with bad credit also need to bear the expenses incurred towards closing costs while getting a mortgage refinance. Some of these closing costs include origination fees, title search, title insurance, credit reports, appraisal fees, inspection costs, attorney fees and document preparation costs.

There are many companies on the Internet that have bad credit home loan refinance and these can be checked out online up filling out a simple form with a few particulars.

Home Loan Refinance Online With Bad Credit

Car loans system

Need help with Car Loans?

Don’t You Deserve To Drive One?

BMW Image 1 | Bad Credit Car Loan | Bad Credit Auto Loan

BMW Image 1 | Bad Credit Car Loan | Bad Credit Auto Loan


Here at Creditplus, we can provide you with an instant online approval for your car loan - this means that you'll be driving your new car sooner rather than later.

Our trained staff have many years experience in searching the market for their customers and getting the Best Deal.

Please fill out our form below and we'll contact you to arrange your car loan. Fields marked in red are required.
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Are you a UK resident? :
Do you earn over £750 per month? :
Do you hold a UK driving license? :
I confirm that I am not in a debt management programme or (IVA) Individual Voluntary Agreement :

I confirm that I am not within a personal bankruptcy :
I do not work on a temporary basis for an employment agency :

Finance

Financing when buying a new car
For most of us, buying a new car involves borrowing most or all of the cost of the vehicle by accepting the financing that a dealership offers. Other new car buyers arrange financing through a local bank or credit union. Many people are financially prepared to buy a new car and pay for it outright themselves. Another popular option is to lease a new car. Although these choices have their individual benefits and downsides, depending on your financial situation, one may be just right for you.
AUTO LOAN CALCULATOR
Auto Loan Amount
Loan Length in Months
Interest Rate
Your monthly auto loan
payment will be

Car Loans From a Dealership
The easiest way to finance a new car is through the dealership where the car is purchased. If you have systematically researched individual dealerships for the best deal, and satisfy a dealer's "qualified buyer" requirements, you may be able to secure a loan at a low rate, and save money. Always be sure you have a clear idea of how much car you can afford, and what terms will meet your needs. New car loans can be configured for 30 to 72 months. While longer term loans usually offer lower interest rates, calculating the total interest for the life of the loan may be revealing.

Bank and Credit Union Car Loans
The best place to research and compare auto loans is on the Internet. Banks, credit unions, and other lending institutions offer comprehensive services online to assist you in comparing interest rate quotes. Equipped with calculators, links to loan resources, and methods of comparing loans, online lenders can make the process of researching a new car loan much more efficient and easy.

Researching New Car Loans
Whether you are purchasing your first new car, or are a seasoned veteran, the first rule of new car buying is to know your facts. Taking the time to compare rates and loan terms can save you hundreds or thousands of dollars. Spending the extra time to get the best deal can help you take a step up to a nicer vehicle. Make sure you do sufficient research to thoroughly know the playing field upon which the game of new car loans is played. You can't expect to win if you don't know the rules.

Leasing a New Car
Leasing a new car is particularly appealing for people who will keep a car only a few years before wanting to drive a new vehicle. They can always opt to purchase the vehicle when the lease expires, but leasing affords the ability to get a new car to drive every three or four years. The downside of obtaining a new car every few years is that you are spending the extra amount for the higher DMV and insurance fees. Five years of leasing is about more expensive than the first five years of ownership of a new car. This is not an issue if you require a new car in the driveway.

Save Money Buying a New Car
It may sound contradictory, but a person can save money when buying a new car. Rather than buying a car from the closest or most convenient dealership that stocks the vehicle you are looking for, you can save hundreds, if not thousands by shopping for a new car on the Internet. Researching interest rates can make a difference. Even a few tenths of a percent interest can mean hundreds of dollars over the life of theloan. Check for dealer discounts and cash back offers. Many lending institutions offer monetary incentives for making loan payments by automatic payroll deduction.

what you like....?


BMW PICTURE

BMW Image 1 | Bad Credit Car Loan | Bad Credit Auto Loan

BMW Image 1 | Bad Credit Car Loan | Bad Credit Auto Loan

BMW Image 1 | Bad Credit Car Loan | Bad Credit Auto Loan

Fair Credit Reporting Act

Definition

Federal law giving individuals the right to examine their own credit history. The provisions of this law enable consumers to approach credit reporting agencies to see what the agencies may be saying about them, find out if their credit information has been used any third parties, and approach an agency to dispute wrongful use or interpretation of their information.

Cite this definition


Related Research Articles from the InvestorGuide.com University

Credit Reports
Explains the concept of a credit report, and describes information found on a credit report, including identifying information, credit information, public record information, and inquiries.

Credit Regulations
Information is being collected about your credit behavior and used by others to rate you. Learn what your rights are when it comes to credit laws. Understand the Fair Credit Reporting Act (FCRA), the Equal Credit Opportunity Act (ECOA), and the Fair Debt Collection Practices Act (FDCPA), and how they protect you.

Credit Mistakes
Your credit report may have errors on it, and this can hurt your ability to borrow. That's why it's important to check your credit reports periodically and get errors resolved. Here we describe the best procedure to follow to make sure you're protected so that errors don't hurt you. We also list the contact information of the three large credit reporting agencies: Experian, Equifax, and Trans Union.

Credit Reports
Overview of Credit Reports and Their Content
by InvestorGuide Staff (Write for us!)
(Click on the links within the article to get definition of that word)

If you've ever applied for a charge account, a personal loan, insurance, or a job, there's a file about you. This file contains information on where you work and live, how you pay your bills, and whether you've been sued, arrested, or filed for bankruptcy. Companies that gather and sell this information are called Consumer Reporting Agencies (CRA's). The most common type of CRA is the credit bureau. The information CRA's sell about you to creditors, employers, insurers, and other businesses is called a consumer report, or in the case of credit bureaus, a credit report.

Checking your credit report is the best way to gauge the risk you pose to prospective lenders such as banks, loan officers, and landlords. Getting your credit report is easy, and can be done online. The "Big Three" credit bureaus are Experian, Equifax and TransUnion.

Equifax, P.O. Box 740241, Atlanta, GA 30374-0241 (888) 766-0008.
Experian, P.O. Box 2002, Allen, TX 75013 (888) 397 3742.
Trans Union, P.O. Box 2000, Chester, PA 19022 (800) 916-8800.

While many lending institutions report consumer credit information to all three bureaus, some report only to one, so your credit report might differ slightly from one bureau to another. You can order your credit report from each agency individually, or order all three at once from sites such as TrueCredit. We recommend that you check your credit report at least once every two years, and immediately prior to any significant borrowing you're anticipating.

Getting your credit report isn't free (usually), but it is inexpensive. Credit bureaus can charge no more than $8 for your report. However, there's no charge if a company takes adverse action against you, such as denying your application for credit, insurance or employment, and you request your report within 60 days of receiving the notice of the action. The notice will give you the name, address, and phone number of the credit bureau to contact. In addition, you're entitled to one free report a year if you can prove that you're unemployed and plan to look for a job within 60 days, or if you're on welfare, or if your report is inaccurate because of fraud.

Here is what you will find on your report:

1. Identifying information: your name, current and previous addresses, Social Security number, year of birth, employment history and income, and home ownership.
2. Credit information: information for each account you hold, such as date opened, credit limit or loan amount, balance, monthly payment and recent payment history. This information is gathered from a large number of sources, including banks, credit unions, credit card issuers, mortgage and loan companies, landlords, insurance companies, professional service organizations, and others.
3. Public record information: information from government agencies, including federal district bankruptcy records, state and county court records, tax liens, monetary judgments, and (in some states) overdue child support, for the last 7 years (sometimes 10 for bankruptcies).
4. Inquiries: the names of anyone who has requested a copy of your credit report within the past year (or the past two years for employment-related inquiries).

Your credit report doesn't include information about your race, religion, medical history, personal lifestyle, political party, or criminal record.

Another important feature of a credit report is a credit risk score. This information is sometimes provided to a credit grantor, but it usually won't be included in the copy of your report that you receive. A credit risk score is an quantitative evaluation of a person's creditworthiness based on an analysis of that person's credit report. The calculation is based on a complex weighting of many factors, including payment history, outstanding debt, credit history, pursuit of new credit, and types of credit in use. Although different credit scoring systems exist, the most common is the Fair Isaac (FICO) score. Credit scores range from 375 to 900, with 650 being about average. A higher score indicates better creditworthiness. As your credit history changes, your credit score will change.

In addition to the standard credit reports, there are also specific-purpose reports for certain circumstances. The two most common are the mortgage report and the employment report. Both are similar to standard credit reports but focus on certain areas relevant to mortgages or employment while ignoring others.

Credit Basics
An Overview of Credit Regulations
by InvestorGuide Staff (Write for us!)
(Click on the links within the article to get definition of that word)

Now that you've seen that information about you is being collected and distributed without your consent, you may feel that your privacy has been invaded, and to some degree you would be right. But it's a necessary evil, since lenders wouldn't lend to you if they weren't able to estimate the risk it involved (or at the very least, the lending process would be grossly inefficient). Fortunately, the government has taken significant steps to protect your rights. As we mentioned above, the credit report does not contain personal information not relevant to the lending process, such as your religious or political affiliation. For the information that does appear in the report, there are strict rules about their use which are intended to safeguard your rights. The three most important federal acts are described below. You may have additional rights under state laws. Contact your state Attorney General or local consumer protection agency for more information.

The Fair Credit Reporting Act (FCRA), enforced by the Federal Trade Commission, is designed to promote accuracy and ensure the privacy of the information used in consumer reports such as credit reports. Recent amendments to the Act expand your rights and place additional requirements on credit bureaus and other consumer reporting agencies (CRA's). Businesses that supply information about you to CRA's and those that use consumer reports also have new responsibilities under the law.

First, you have a right to know what's in your report. The CRA must tell you everything in your report, including medical information, and in most cases, the sources of the information.

Second, only people with a legitimate business need are able to get a copy of your report. For example, a company is allowed to get your report if you apply for credit, insurance, employment, or to rent an apartment. That company must also sign a contract agreeing to use the data properly. A CRA may not supply medical information about you to anyone without your consent. Additionally, a CRA may not supply information about you to your employer, or to a prospective employer, without your consent.

Third, the CRA must give you a list of everyone who has requested your report within the past year (two years for employment-related requests). The Equal Credit Opportunity Act requires that anyone who takes action against you in response to a report supplied by a CRA - such as denying your application for credit, insurance, or employment - give you the name, address, and telephone number of the CRA that provided the report.

Fifth, you have the right to opt out of unsolicited offers from creditors. Creditors and insurers may use CRA file information as a basis for sending you unsolicited offers. These offers must include a toll-free number for you to call if you want to remove your name and address from lists for two years; completing a form that the CRA provides for this purpose will keep your name off the lists permanently. Equifax, Experian, and Trans Union have websites which explain marketing list opt-outs and how to request them, but you cannot opt out online.

Finally, you have a right to dispute your credit report if it is in error .

The Equal Credit Opportunity Act (ECOA) is designed to protect you against discrimination by creditors for any reason (other than your creditworthiness). The ECOA forbids creditors from requiring you to state your sex, race, national origin, or religion, and cannot deny you credit for these reasons, or for your age, or for the fact that you receive public assistance.

The Fair Debt Collection Practices Act (FDCPA) is designed to prevent debt collectors from engaging in unfair, deceptive, or abusive practices. Debt collectors must identify themselves to you on the phone, may contact you only between 8 am and 9 pm, and may not contact you at work if they know your employer disapproves of it. In addition, they may not harass or abuse you, or lie to you, and must stop contacting you if you ask them to in writing.

Credit Reports
How to Contest Errors in Your Credit Report
by InvestorGuide Staff (Write for us!)
(Click on the links within the article to get definition of that word)

Many credit reports accumulate errors over time and some of these errors can be serious enough to lead to a denial of credit. For this reason it is important to fix any incorrect information as soon as you discover it.

Both the CRA and the information provider have responsibilities for correcting inaccurate or incomplete information in your report. To protect all your rights under this law, contact both the CRA and the information provider. In both cases, include copies of documents which support your position, and send your letter by certified mail return receipt requested, so you have proof that they received it.

First, tell the CRA in writing what information you believe is inaccurate.

* Experian's National Consumer Assistance Center
P.O. Box 2002
Allen, TX 75013
* Equifax Information Services
P.O. Box 740241
Atlanta, GA 30374-0241
* Trans Union Corporation
P.O. Box 2000
Chester, PA 19022


This letter should include your full name, current mailing address and previous addresses for the last five years, your Social Security number, your date of birth, your spouse's name and Social Security number (if applicable), the name and account number of the creditor and item you're disputing, and your explanation of the error. CRAs must reinvestigate the items in question -- usually within 30 days -- unless they consider your dispute frivolous. They also must forward all relevant data you provide about the dispute to the information provider. After the information provider receives notice of a dispute from the CRA, it must investigate the matter, review all relevant information provided by the CRA, and report the results to the CRA. If the information provider finds the disputed information to be inaccurate, it must notify all nationwide CRAs so that they can correct this information in your file.

When the reinvestigation is complete, the CRA must give you the written results and a free copy of your report if the dispute results in a change. If an item is changed or removed, the CRA cannot put the disputed information back in your file unless the information provider verifies its accuracy and completeness, and the CRA gives you a written notice that includes the name, address, and phone number of the provider.

Second, tell the creditor or other information provider in writing that you dispute an item. Many providers specify an address for disputes. If the provider then reports the item to any CRA, it must include a notice of your dispute. In addition, if you are correct -- that is, if the information is inaccurate -- the information provider may not use it again.

If the CRA or information provider won't correct the information you dispute, ask the CRA to include your statement of the dispute in your file and in future reports. If you request, the CRA also will provide your statement to anyone who received a copy of the old report in the recent past. There usually is a fee for this service. If you tell the information provider that you dispute an item, a notice of your dispute must be included anytime the information provider reports the item to a CRA.

Although the Federal Trade Commission can't act as your lawyer in private disputes, they do investigate complaints to detect patterns. Send your questions or complaints to: Consumer Response Center, Federal Trade Commission, CRC-240, 600 Pennsylvania Ave NW, Washington, D.C. 20580. If push comes to shove, you may sue a CRA, a user or (in some cases) a provider of CRA data, in state or federal court for most violations of the FCRA. If you win, the defendant will have to pay damages and reimburse you for attorney fees to the extent ordered by the court.

Print Article

Credit Basics

Now that you've seen that information about you is being collected and distributed without your consent, you may feel that your privacy has been invaded, and to some degree you would be right. But it's a necessary evil, since lenders wouldn't lend to you if they weren't able to estimate the risk it involved (or at the very least, the lending process would be grossly inefficient). Fortunately, the government has taken significant steps to protect your rights. As we mentioned above, the credit report does not contain personal information not relevant to the lending process, such as your religious or political affiliation. For the information that does appear in the report, there are strict rules about their use which are intended to safeguard your rights. The three most important federal acts are described below. You may have additional rights under state laws. Contact your state Attorney General or local consumer protection agency for more information.

The Fair Credit Reporting Act (FCRA), enforced by the Federal Trade Commission, is designed to promote accuracy and ensure the privacy of the information used in consumer reports such as credit reports. Recent amendments to the Act expand your rights and place additional requirements on credit bureaus and other consumer reporting agencies (CRA's). Businesses that supply information about you to CRA's and those that use consumer reports also have new responsibilities under the law.

First, you have a right to know what's in your report. The CRA must tell you everything in your report, including medical information, and in most cases, the sources of the information.

Second, only people with a legitimate business need are able to get a copy of your report. For example, a company is allowed to get your report if you apply for credit, insurance, employment, or to rent an apartment. That company must also sign a contract agreeing to use the data properly. A CRA may not supply medical information about you to anyone without your consent. Additionally, a CRA may not supply information about you to your employer, or to a prospective employer, without your consent.

Third, the CRA must give you a list of everyone who has requested your report within the past year (two years for employment-related requests). The Equal Credit Opportunity Act requires that anyone who takes action against you in response to a report supplied by a CRA - such as denying your application for credit, insurance, or employment - give you the name, address, and telephone number of the CRA that provided the report.

Fifth, you have the right to opt out of unsolicited offers from creditors. Creditors and insurers may use CRA file information as a basis for sending you unsolicited offers. These offers must include a toll-free number for you to call if you want to remove your name and address from lists for two years; completing a form that the CRA provides for this purpose will keep your name off the lists permanently. Equifax, Experian, and Trans Union have websites which explain marketing list opt-outs and how to request them, but you cannot opt out online.

Finally, you have a right to dispute your credit report if it is in error .

The Equal Credit Opportunity Act (ECOA) is designed to protect you against discrimination by creditors for any reason (other than your creditworthiness). The ECOA forbids creditors from requiring you to state your sex, race, national origin, or religion, and cannot deny you credit for these reasons, or for your age, or for the fact that you receive public assistance.

The Fair Debt Collection Practices Act (FDCPA) is designed to prevent debt collectors from engaging in unfair, deceptive, or abusive practices. Debt collectors must identify themselves to you on the phone, may contact you only between 8 am and 9 pm, and may not contact you at work if they know your employer disapproves of it. In addition, they may not harass or abuse you, or lie to you, and must stop contacting you if you ask them to in writing.

Equal Credit Opportunity Act

Definition

A federal law prohibiting lenders from discriminating on the basis of the borrower's race, color, national origin, religion, age, sex, marital status, or public assistance program participation.

Cite this definition

Related Terms

credit scoring

Related Research Articles from the InvestorGuide.com University

Credit Cards
Learn how credit cards, despite the convenient and useful way to pay for products and services, also encourages excessive spending that lead to debt accumulation and high interest rates on the money owed. Understand why the use of credit cards is recommended only for those who intend to pay off the balance each month, and consider the types of credit cards carefully.

Credit Fraud
Credit fraud is an increasingly serious problem, growing almost threefold in the past five years. Are you protected and do you know what to do if this happens to you? This article includes steps to prevent credit fraud, and how to deal with it if it does occur.

Credit Card Debt
Many people find themselves wasting money each and every month on high credit card interest rates. This article tells you how to avoid getting into credit card debt, and if you do, the best way to escape it.

loan definition



An arrangement in which a lender gives money or property to a borrower, and the borrower agrees to return the property or repay the money, usually along with interest, at some future point(s) in time. Usually, there is a predetermined time for repaying a loan, and generally the lender has to bear the risk that the borrower may not repay a loan (though modern capital markets have developed many ways of managing this risk).

Cite this definition

Related Terms

asset conversion loan, balloon loan, bank term loan, bridge loan, broker loan, callable loan, character loan, classified loan, conforming loan, consolidation loan, day loan, demand loan, discount loan, evergreen loan, FHA loan, floor loan, hang out loan, indexed loan, interest-only loan, non-conforming loan, note loan, partially amortized loan, participation loan, piggyback loan, policy loan, purpose loan, recourse loan, securities loan, security loan, single-payment loan, soft loan, unsecured loan, wraparound loan, installment loan, loan-to-cost, loan-to-value, predatory lending, secured loan, loan stock

Related Research Articles from the InvestorGuide.com University

Improving Credit
Find out how to improve your credit (and why this is important). We describe techniques you can use, such as timely bill payment, closing unused credit lines, and avoiding collection agencies, judgments against you, and bankruptcy for seven to ten years.

Credit Regulations
Information is being collected about your credit behavior and used by others to rate you. Learn what your rights are when it comes to credit laws. Understand the Fair Credit Reporting Act (FCRA), the Equal Credit Opportunity Act (ECOA), and the Fair Debt Collection Practices Act (FDCPA), and how they protect you.

Bankruptcy
More than a million Americans declared bankruptcy last year, and that number continues to rise. Learn everything you needed to know about bankruptcy, including the different types: Chapter 7, Chapter 11, and Chapter 13.


arrangement
Definition

Private or court-mediated agreement between a debtor and unsecured creditors, under which the creditors agree to settle for a certain fraction of monies owed by the debtor. When it is a voluntary agreement, it is called scheme of arrangement and is governed by the ordinary law of contract, otherwise (if the debtor is insolvent) it is a deed of arrangement which is governed by the relevant statute. The primary objective of an arrangement is avoidance of bankruptcy. See also letter of lenienency.

lender
Definition

A private, public or institutional entity which makes funds available to others to borrow.

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Related Terms

marginal lender, loan, mortgage, commitment fee, origination fee, credit, covenant, Equal Credit Opportunity Act, installment, interest, mortgagee, factor, pawn broker, collateral, satisfaction of debt, Truth in Lending

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Credit Mistakes
Your credit report may have errors on it, and this can hurt your ability to borrow. That's why it's important to check your credit reports periodically and get errors resolved. Here we describe the best procedure to follow to make sure you're protected so that errors don't hurt you. We also list the contact information of the three large credit reporting agencies: Experian, Equifax, and Trans Union.

Credit Card Debt

Many people find themselves wasting money each and every month on high credit card interest rates. This article tells you how to avoid getting into credit card debt, and if you do, the best way to escape it Credit Fraud
Credit fraud is an increasingly serious problem, growing almost threefold in the past five years. Are you protected and do you know what to do if this happens to you? This article includes steps to prevent credit fraud, and how to deal with it if it doesoccur.

money
Definition


Legal tender, cash.

Cite this definition

Related Terms

active money, at the money, barren money, close to the money, deep in the money, deep out of the money, earnest money, fiat money, front money, in the money, lawful money, near money, out of the money, smart money

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Currency and Precious Metals
Provides insight into the currency and precious metals market. Provides a description of these markets and reasons why (or why not) to pursue these types of investments.

Introduction to the Economy
Learn how the economy can be influenced by the US government through fiscal and monetary policy. Understand the importance of a global economy and why individuals should make a portion of their investments overseas.

Economic Indicators
Find out about some of the most researched pieces of news in the world. Topics include Gross Domestic Product, Consumer Price Index, the Producer Price Index, Employment Indicators, the Retail Sales Index, the National Association of Purchasing Management Index, the Consumer Confidence Index, and more.

Top Resources for Refinancing Help

Man vs. Wild personality Bear Grylls can tell you how to survive in the Panamanian jungle. And Rachael Ray can guide you to a delicious home-cooked meal in 30 minutes or less. But who's going to walk you through to the successful close of your refinance mortgage?
Keep tabs on the lending environment

The Mortgage Bankers Association (www.mbaa.org) publishes weekly, monthly, and quarterly reports about the state of the economy and, in particular, the home finance industry. You could spend hours reviewing reports, articles, and press releases that discuss current industry trends, but you might focus on the monthly mortgage finance outlook. The report projects estimated mortgage rates for 30-year fixed-rate mortgages and 1-year Treasury adjustable-rate mortgages. While actual rates are likely to be slightly different, you can still use the estimates to make a rough payment calculation.
Monitoring interest rates

Fannie Mae (www.fanniemae.com), Freddie Mac (www.freddiemac.com), and the Federal Home Loan Bank Board (www.fhlbanks.com) provide a wealth of information on current and historical mortgage interest rates. A few words of caution: Don't try to time the market for the absolute best rate; you might end up waiting indefinitely for a low rate that never materializes. Remember, even the experts can't make accurate predictions about where rates are going.
Crunching numbers

Mortgageloan.com has dozens of calculators to answer all of your refinance-related questions. Compare the costs of two different loan types, calculate APRs, evaluate a cash-out refinance for debt consolidation, determine when you'll break even on a refinance, and much more. While you might hear otherwise, a refinance is always a complicated decision-don't proceed until you're confident that you understand all of the financial consequences.

Personal Finance Glossary

A- credit

The best credit rating that you can have. A FICO score above 720 will get you the best offer the lender can offer and the best interest rates. When applying for a mortgage loan, you will want your credit score to be as high as you can make it. Start working on this immediately.

Abandonment value

Abandonment value is the amount which could be recovered from an asset or project if it were liquidated or terminated immediately. Investors would compare an asset's abandonment value to that asset's projected earnings to decide whether or not to continue supporting that asset.

Academy of Financial Divorce Practitioners

The Academy of Financial Divorce Practitioners educates and certifies financial service professionals in the financial consequences of property settlements, child support, and other divorce-related issues. Certified members are awarded the CFDP (Certified Financial Divorce Practitioner) designation.

Accumulation

Accumulation refers to the investment practice of buying securities over time, while reinvesting dividends and related income, with the objective of building a sizeable portfolio. With reference to corporations, accumulation can mean the reinvestment of earnings to fund business growth.

Assumable mortgage

A loan that allows a home buyer to take over a seller's mortgage when purchasing a home. The borrower must qualify to assume the loan. When you assume a mortgage you inherit both the interest rate and monthly payments. It can save you money if the exsiting interest rate on the mortgage is lower than the current market rate and closing costs are avoided as well. If the loan comes with a stipulation that the mortgage has to be repaid upon the sale of property then it is not termed as assumable.

Application

An application is a form poularly known as Form 1003. It is needed to apply for a mortgage and provides information about the prospective borrower/mortgagor like his savings, income, assets, debts as well as the security to be offered.

ACRES (accelerated cost recovery system)

Commonly referred to as ACRS (pronounced "acres"), a method of depreciating property rapidly for tax purposes. ACRS property is divided into classes and each class has a predetermined time period over which it may be depreciated. ACRS generally is used for property placed in service after 1980 and by Dec. 31, 1986. The modified system that has replaced ACRES is known as MACRS, or Modified Accelerated Cost Recovery System.

Accelerated payments

Accelerated payments are amounts applied to a loan over and above the required repayments. These additional, unscheduled payments lower the balance of debt outstanding, and can lead to interest savings and early pay-off.

Accident and health insurance

Accident and health insurance provides coverage for accidental injury, illness, or death. Benefits include payment of medical expenses and payment of income. Some programs also allow for debt payments while the insured is unable to earn income.

CD Basics

CD Basics

The longer the term of a CD, and the larger the initial deposit, the higher the interest rate. Terms generally range from 6 months to 5 years. During that time, you won't have access to your money. You will, however, have the option of drawing out the interest as it's paid.

Let's say you put $1,000 in a CD for one year at an annual percentage yield, or APY, of 5 percent. At the end of the year, you'll have $1,050. Fifty dollars may not sound like a lot, but leaving it in a savings account with a 2 percent APY will earn only $20.

Another great asset of CDs: they're insured just like the money that you'd put into a savings account.
Know what you're getting

Certificate of deposits offer a variety of features. Some have "call" options that allow the bank to call it in if interest rates drop. Some CDs even have variable interest rates. Before you sign on the dotted line, ask questions, get answers and fully understand the CD that you're buying. You'll need to know:

1. When the CD matures
2. The interest rate and whether it changes
3. Whether the CD can be called, or terminated early
4. Penalties for early withdrawal
5. How and when you'll be paid

A certficate of deposit is one of the safest investments you can make. Don't let your cash grow moldy in a savings account; make better use of it with a CD.

Auto Lease vs. Auto Buy Calculator and Auto Loan Calculator

The purpose of the Lease vs. Buy calculator is to help users compare the cost of buying a car to those of leasing a car. To use this tool you will need to enter the purchase price of the vehicle that you are interested in, the sales tax rate, your down payment amount, the investment rte of return, your auto loan terms in months, the interest rate for your auto loan, auto loan fees, the annual depreciation for the car's value, your lease in terms of months, the interest rate, lease fees, the residual percentage, and your security deposit. This calculator will analyze all of this information and tell you what the net cost of buying the vehicle that you are interested in will be and what the net cost of leasing the same vehicle will be.
This Financial Calculator requires SUN's Java� Plug-in. If you see this message you will need to download SUN's Java� Plug-in. This can be done automatically by clicking the yellow bar at the top of your browser and choosing �Install ActiveX Control�.

Auto Lease vs. Auto Buy Calculator Overview

Deciding whether you should lease or buy is not always an easy decision to make. There are several factors that are going to influence your decision. Some of these factors include the interest rate that you can get, the amount of sales tax you will have to pay, what terms you can get, the vehicle's depreciation rate, and the lease's terms. If you would like some help analyzing all of your options then you should use our Lease vs. Buy calculator.

Auto Loan Calculator Overview

Unless you've been hiding under a rock, you know that gas prices are skyrocketing. But before you trade in that massive SUV for a trendy new hybrid, use this auto loan calculator to help estimate the potential financial damage to your wallet.
Total purchase price

If you're still making monthly payments on your current vehicle, follow the instructions below to find out how much purchasing power you'll have in today's auto market.

1) Click on the 'Total purchase price' button on the right.

2) Complete the items on the left. Use your keyboard's tab button or your mouse to click into each of the following fields:

1. 1. Monthly payment
2. 2. Term in months
3. 3. Cash down
4. 4. Trade allowance (check Kelley Blue Book value if you don't have this info)
5. 5. Amount owed on Trade

Your estimated purchase price will now appear on the right and at the top. If you don't want to assume a higher monthly payment than you currently have, choose a vehicle in this price range.
New monthly payment

If you don't currently have a car payment, this area will help determine what your new monthly payment will be. Don't try to crunch the numbers in your head-use this calculator to determine the monthly payment amount for a variety of auto prices and loan terms.

To calculate:

1) Click on the "Monthly payment" button on the left.

2) Complete the following items in the right column. Use your keyboard's "tab" button or your mouse to click into each of the following fields:

1. 1. Total purchase price
2. 2. Interest rate
3. 3. Fees (taxable)
4. 4. Fees (non-taxable)
5. 5. Sales Tax Rate

Your new monthly payment will appear immediately on the left and at the top.
Graph it

If you'd like to see a graph of your results, the graph calculator can plot it for you. Click on the "Schedule" button to see how much the loan principal will decrease over the life of the loan. Enter several different loan terms in the column on the upper left, and then click on the "Terms" button to learn the impact that a longer or shorter loan term could have on your monthly payment amount. Use the "Down payments" button to create a graph depicting the effect of different down payment amounts.

Before you head to the dealership and try to explain your needs to an eager salesperson, use this auto loan calculator to help you determine how much you really want to spend. By taking the time to review your options, you'll be better prepared to select the auto loan that's best for you.

Financing: Where will you turn? when Buy or Lease?

Once you've found a monthly car payment amount that you're comfortable with, set your sights on financing. If you don't have the cash on-hand to buy outright, consider these options:

Once you've found a monthly car payment amount that you're comfortable with, set your sights on financing. If you don't have the cash on-hand to buy outright, consider these options:
Table of Content

* 1. A New Set of Wheels
* 2. Financing: Where will you turn?
* 3. Used or New?
* 4. Buy or Lease?
* 5. Choosing the Car

1. Home equity. Since homes and cars are usually the largest single purchase most people make, it's not surprising that some smart consumers use one to acquire the other by taking out a second mortgage to buy a car. Because the interest on a home loan is generally tax-deductible, many use either a fixed-rate home equity loan, or a home equity line of credit (HELOC) to finance their wheels. A bank or a credit union can provide you with the loan, assuming you have enough equity in your home.

2. Bank loan. Another popular choice is a standard car loan. Credit unions tend to have the best rates, but banks can be equally competitive. Don't limit yourself to local lenders, however. Drive down the information superhighway; the Internet is a great vehicle for finding good deals.

3. Car dealer financing. Opt for this choice only if you have problems getting a home equity or bank loan. Financing through a dealership will generally involve higher rates and more fees.

Borrow from reputable lending institutions at competitive rates. If you don't qualify because of a tainted credit past, consider rewriting history and wait on that new car until you've got your finances back in shape.

Next to a home mortgage, a car is one the biggest purchases you can make. Take your time and shop various lenders before you make a decision. Understand the fees and the interest rate you'll be paying. Haste will make waste of your bank account if you're not careful. Be comfortable with your financing before you sign on the dotted line.

Deciding whether to lease or buy comes down to crunching numbers. Generally, a lease requires little or no money upfront, and requires lower monthly payments. The downside is that when it expires, you're stranded on the side of the road without a car.

Deciding whether to lease or buy comes down to crunching numbers. Generally, a lease requires little or no money upfront, and requires lower monthly payments. The downside is that when it expires, you're stranded on the side of the road without a car.
Table of Content

* 1. A New Set of Wheels
* 2. Financing: Where will you turn?
* 3. Used or New?
* 4. Buy or Lease?
* 5. Choosing the Car

If you buy, you may pay a little more per month; but when your loan is finished, you're left with a familiar set of wheels-one that you can resell when you're ready.

This decision also involves convenience. With a lease, you get the pleasure of driving a new car every few years, one that will not require heavy maintenance costs on your part. The monthly payment for a car will also be lower if you lease a vehicle rather than purchase it.

However, owning allows for more flexibility. You're not constrained by the mileage limits of a lease, and you can sell it whenever you'd like.

At this point, you've mulled over some pretty important questions, crunched some numbers, and come up with concrete answers. Like the question "new vs. used," "lease vs. buy" is a personal decision. To find your answer, carefully evaluate your short and long-term needs, and factor in your personality. Above all else, your decision should feel as comfortable as Corinthian leather. Take your time and you'll make the right call.

A New Set of Wheels

If you've decided that it's time to buy a car, you probably can't wait to head to the dealership to start your test drive. But before you even think about makes and models, there are other things to first consider. They're not nearly as much fun as that test-drive, but they'll help you make better car-buying decisions.

If you've decided that it's time to buy a car, you probably can't wait to head to the dealership to start your test drive. But before you even think
Table of Content

* 1. A New Set of Wheels
* 2. Financing: Where will you turn?
* 3. Used or New?
* 4. Buy or Lease?
* 5. Choosing the Car

about makes and models, there are other things to first consider. They're not nearly as much fun as that test-drive, but they'll help you make better car-buying decisions.

Begin the buying process by looking at your finances. You'll automatically narrow your choices when you figure out how much money you can realistically spend.
The budget

No one likes to make a budget, but it could be the most useful thing you do when it comes to purchasing a new automobile. Think about it this way: If you have no idea how much you can spend, you may wind up buying something you can't afford. If you don't have the money to make your payments, your car could wind up being repossessed, leaving you with no car and loads of debt.

To avoid that scenario, use conservative figures to determine how much you can set aside for a car payment. Naturally, you're going to have the purchase price. If you have a down payment, either from the sale of a current car, trade-in, or savings, factor that into the equation.

Every car needs insurance, and you'll also have maintenance and repair expenditures. Your insurance agent can quote you some rates, and check with Consumer Reports and other online resources for repair histories on different cars.

Give yourself plenty of wiggle-room in your monthly budget. Most importantly, be sure you don't sacrifice savings for retirement or the kids' college educations just to get a nicer car. It might be short-term fun, but it could spell long-term disaster.

Car Loan

Are You the Ideal Borrower for a Car Loan?


BMW Image 1 | Bad Credit Car Loan | Bad Credit Auto Loan


When you are looking for someone to loan you money, no matter what the purpose, you want to be as attractive to that person as possible. So, who do lenders feel most comfortable with when writing car loans? An excellent credit score as well as a low debt-to-income ratio always makes you attractive to a car lender. In addition, many banks and traditional lenders prefer to lend money for new cars.

If your car loan will be written on a used vehicle, and it is a newer car model, less than the book value, and you have a relatively short repayment schedule, your car loan will look more attractive.
Car Loan If You Are Not the Ideal Borrower? - Bad Credit Car Loans

Bad Credit, borrowing money for an older car, or needing to finance for an extended period are all reasons that a lender may look cautiously at your loan application. If you are unable to get a car loan, you may ask what would help your case. Often a small down payment may be enough to ease the lender's mind.

If traditional financing is out of the question, the next step is to attempt to get financing through the dealership. Most dealerships offer this service, and would prefer to finance your loan as well as sell you the car. The interest rate will likely be higher than through a bank or online lender, but still reasonable. The dealership who, of course, wants to sell you a vehicle, will often act as an intermediary between you and the lender, and help work out a deal.
Cars Guide



Used Cars Auto Refinancing : Save thousands of dollars in interest on your car with used vehicle auto refinance option



Guide to Buying a Car »
o A New Set of Wheels
o Financing: Where will you turn?
o Used or New?
o Buy or Lease?
o Choosing the Car

Other Choices in Financing Your Car - Refinance or use a HELOC

If you are unable to obtain a car loan through a traditional or online lender, or through one of the major motor company's credit department, you are left with a few options. If you own your home, you can take out a 293 to pay for your car. The interest rate is reasonable, and you can normally write-off the interest on your taxes, but, you stand to lose not your car but your house if you default.



* Using a HELOC Loan to Finance Your Car
* Refinance to Finance Your Car



If your need for a vehicle is not immediate, try saving money for it. Put away the amount of money that would go towards a car payment every month. You may not be able to wait long enough to buy a new car, but if you are faithful with this savings plan, you can easily sock enough cash away to by a reliable used car. In addition, the practice of saving that money each month will be beneficial when you are ready to take on a car loan.

As a last resort, you may have to consider buying a car at a "buy here, pay here" car dealership. These places do not require a credit check, but you will be paying a high interest rate, and you cannot miss or even be late with one payment, or they may repossess your car. Deal with these types of dealerships only as a last option.

Mortgage Refinancing

Refinancing is when you apply for a secured loan in order to pay off another different loan secured against the same assets, property etc. If this original loan had a fixed interest rate mortgage which has now declined considerably, then you would like to avail of a new loan at a more favorable interest rate.

When is Refinancing an Option

Typically home refinancing is done when you have a mortgage on your home and apply for a second loan to pay off the first one. While taking the decision to go for the home refinancing option, it is important to first determine whether the amount you save on interests balances the amount of fees payable during refinancing.
Refinance Guide

*
Guide to Mortgage Refinancing »
o Introduction to Mortgage Refinancing
o Tax Advantages of Refinancing
o Refinance or Second Mortgage?
o Closing Costs and Refinance Risks

Benefits of Home Refinancing

Imagine a scenario where you can have access to extra cash, while simultaneously lowering your monthly mortgage payment. This dream can become a reality through mortgage refinancing.

A house is the largest asset you may ever own. Likewise, your mortgage payment may be the largest expense you'll have in your monthly budget. Wouldn't it be great to use this asset to reduce your monthly payment and put extra cash in your pocket? When you refinance your mortgage, you can take advantage of the equity in your home and enable this to take place.
Lower Refinance Rate, Lower Payments

When you purchased your dream home, the financial environment dictated interest rates. While certain factors, like your credit rating and the amount of the down payment that you were able to afford, influenced your interest rate, the single most important factor was the prevailing rates at that moment. However, interest rates fluctuate. When the Federal Reserve enters a rate-cutting period, the prevailing rates may become significantly lower than when you originally purchased your home.

By refinancing your mortgage when interest rates are lower, you can exchange a higher interest rate for a lower one, which, in turn, will lower your monthly payment.
Shorten the Length of Your Mortgage when Refinancing

Another advantage of home refinancing is that you can shorten the term of your mortgage. Let's say, for example, that you originally had a 30-year mortgage and have been paying it for eight years. Thanks to mortgage refinancing, you can switch to a shorter term of either 10, 15 or 20 years. This can save you thousands of dollars of interest. Also, if the refinance rate is lower, but you maintain the same monthly payment, you will build up equity in your home more quickly, because more of your payment will be going towards principal.
Exchange an Adjustable Rate for a Fixed Refinance Rate

When interest rates are low, adjustable rate mortgages (ARMs) are the housing market's darlings. However, as interest rates increase, that adjustable rate may not look as sweet. It's also possible that you opted for an ARM because your financial future was less secure, or you weren't sure how long you'd stay in your home. If, however, you've become financially stable and know that you'll be staying in your home for several years, it may be beneficial to swap that fluctuating adjustable rate for a fixed one. You'll have more security knowing that your monthly payment will remain steady, regardless of the current market environment.
Access to Extra Cash - Cash-out refinancing

One way to put more money in your pocket is to tap into the equity you've built in your home and do a "cash-out" refinancing. In this scenario, you can refinance for an amount higher than your current principal balance and take the extra funds as cash. This can provide money for remodeling your home, paying off high-interest rate bills, or sending your kids to college.
Bye, Bye PMI

If you were unable to make a down payment of 20 percent when you purchased your home, you may have been required to purchase Private Mortgage Insurance (PMI). If your house has appreciated since then, and you've steadily paid down your mortgage, your equity may now be more than 20 percent. If you refinance, you will no longer need PMI.

In many ways, your house is like a cash cow. If you have discipline and knowledge of the benefits of refinancing, you can tap into its milk for years to come.

To find the best refinance loan offers complete our short form. You will find lenders and brokers that offer home refinance loans in California, Florida and all other states.

Coping with Job Loss

Homeowners who have defaulted on a mortgage are not the only victims of the subprime crisis. Workers in the subprime mortgage sector have lost their jobs as the industry has crumbled. These workers can find new jobs, but they'll need to be persistent and innovative.

As the subprime crisis pounds the mortgage industry, thousands of its workers have felt the pain. As lender after lender has shut down and filed for bankruptcy, they've laid off countless financial professionals.

When a company closes down, a worker can usually recover by seeking a job with a competing organization. But when a whole industry suffers a meltdown, the competition melts away, as well. However, if you're a professional reeling from the subprime mortgage crisis, have hope. You can find another job, and here are some tips to get you started.
Don't ruminate-innovate

Many people are surprised to learn that the iPod was launched just over a month after the 9/11 attacks. It serves as a lesson that you can make money during recessionary times; you just have to be innovative. The movie business, for example, thrived during the Great Depression. With so many subprime lenders drying up, displaced workers need to show a similar level of innovation, as they look for a job in a different industry.

You may need to "re-package" yourself. Instead of presenting yourself as someone who worked in subprime mortgages, reinvent yourself as a financial professional who's helped people with marred credit. Try blogging about your experience in the financial industry, or post videos on YouTube revealing some of your knowledge. A prospective employer may be impressed by your expertise and your inventiveness.
Hard work is key

Unemployment may be a difficult pill to swallow for someone who's enjoyed a ride on the subprime gravy train for the last five to 10 years. The money used to come easy, but now you're going to have to work hard. That includes sending out countless job applications, resumes, and networking like crazy. It could take a lot of time, and will likely include plenty of rejection. Don't be deterred. Keep working through it, and try to remain as positive as possible.

One proven way to keep your nose to the grindstone is to set daily activity goals. Set a number for yourself-such as sending out five applications per day, or making five phone calls per week. These goals will keep you active and help you stay in front of prospective employers.

The subprime mortgage debacle has crushed not only homeowners, but also the people who worked in their service. If you're looking for a job after the subprime industry crash, you'll need to work hard and think creatively. You have great financial industry skills, and now you need to find new and exciting ways to apply them in a drastically changed marketplace. With a little innovation and a lot of effort, you can reinvent yourself, and find the silver lining in these very cloudy days.

Could Falling Home Prices Be Good?

As the majority calls for price supports and taxpayer-funded bailouts to support the falling housing market, some think it's better to let prices fall. They believe that this would finally deflate the bubble that started the trouble in the first place. At least then we would have appropriately priced housing.

As the housing crisis grows, it also gets more surreal. Ed McMahon-often seen on TV delivering million dollar prizes to homeowners on behalf of the Publishers' Clearing House Sweepstakes-is headed toward foreclosure, according to the Wall Street Journal.

Just another statistic among the millions unable to refinance away from cumbersome and troublesome loans, McMahon is not alone. This year, a staggering 25 percent of all home sales have been foreclosures. Some blame lenders; others blame homeowners. Many call for a national strategy to pump up the real estate market and get us back on track to higher home prices.
Minority has major contrarian view

A small minority, however, say that prices need to keep dropping until they reach levels that are more in line with economic reality. They cite numerous revealing statistics:

* Take out a new mortgage or refinance an existing one, and most banks now require that no more than 28 percent of your monthly income be spent servicing the mortgage, property taxes, and homeowner's insurance. Debt counselors agree that a safer ratio is 25 percent.
* By those numbers, the average breadwinner on a $50,000 annual salary earning $4,200 a month can afford to buy a house worth $130,000 or less with a safe and predictable 30-year loan at 6 percent interest. If that sounds like a ridiculously low price for a home, bear in mind that the median price of a home in 2000 was less than $140,000.
* In California in 2006, with real estate prices peaking, the state's median household income was approximately $54,000, but the median price of a single-family home was more than $560,000. Servicing a prudent 6 percent 30-year fixed-rate mortgage for $560,000 costs about $3,500 a month, not counting taxes and insurance.
* Meanwhile, the price of the average California home dropped to $403,870 in April 2008, so home values in the examples above have fallen 30 percent. Homeowners continue to spend about 30 percent of their income to pay for them.

Let them eat the house

An economist told Reuters news agency that the household debt of the average American is equal to almost 140 percent of their after-tax income. We spend nearly 15 percent of our income to service that debt, and less than that to buy food. That can make a budget-and an economy-rather anemic.

Maybe it's better to give the house back to the bank and bank some savings, while allowing prices to settle down to a level that corresponds with budgetary reality. Right now, we seem to be following the kind of flawed financial logic that inspires people to buy lottery tickets or enter a sweepstakes of the popular Ed McMahon variety.

Six Reasons to Get a Long-Term Mortgage

As much as home ownership is the American Dream, owing money on a home loan is perceived by many as the American Nightmare. Yet, despite the thousands of dollars you'll spend on interest payments, there are some benefits to a long-term mortgage.

Debt can be depressing, especially when you have a hefty mortgage payment. Many people feel weighed down by monthly payments to a mortgage lender. But there's plenty of evidence that the benefits of a holding a long-term fixed-rate mortgage-such as low mortgage rates and tax-deductible interest-make it a great financial tool.
1. Low mortgage rates

The double-digit interest rates of the 1970s are a distant memory for most homeowners. Today's single-digit mortgage rates, when compared with the interest charged on a credit card or a personal loan, make a home loan the cheapest available money on the market.
2. Tax-deductible interest

As part of the federal government's initiative to increase the rates of homeownership, interest on mortgage payments is tax deductible. The net effect of the deduction is the equivalent to lowering your rate a percentage point or two (based on your tax bracket). The tax-deductible interest rate makes your mortgage dollars even cheaper, which leaves you with more money for investing.
3. Spend more on the market

Just like term life insurance champions the mentality "Buy term and invest the difference," you can take a similar approach to your mortgage. Instead of taking out an expensive 15-year mortgage, get a 30-year mortgage and invest the difference in mutual funds, stocks, or bonds. Over time, compound interest should help your investment overtake the money spent on long-term interest.
4. Your home will appreciate in value

Provided that you live in a good neighborhood with a stable economy, your home should appreciate in value in time. Even minimal percentage gains over time will outpace the cost of your mortgage, further lowering the overall expense of the loan.
5. Mortgage payments static, salaries rise

The best part about a fixed-rate mortgage is that the payment will always stay the same. If you collect annual raises, your salary will consistently increase, making the payments increasingly affordable.
6. Increased liquidity

Liquidity is extremely important for any individual or family; if times get tough, you always want to be able to access cash in a pinch. If you prepay your mortgage and build up equity, you'll have to take out a loan to access it (or else sell your house). On the other hand, if you had invested that money, you could simply cash in your investments.

Debt conjures up all types of negative connotations, but the right kind of debt can be an excellent financial tool. A long-term mortgage at a low interest rate could give you the flexibility you need to invest for your retirement, or have access to emergency cash. Spend less on your mortgage, and you'll save more over the long haul.

Adjustable Rate Mortgages

An adjustable rate mortgage, often called ARM, has an interest rate that is not fixed. The interest rate varies based on one or many indexes. This could be to the one-year treasury bills or to another specific index. You may note that different lenders tie the adjustable rate to different indexes.

Examples of some quite common indexes are:

* Treasury notes and bills
* The Federal Housing Finance Boards National Average mortgage rate, which is an average rate for loans closed.
* The average interest rate paid on jumbo certificates for deposit.
It may also be based on the costs of funds for the specific lender.

Many of these indices that the adjustable rates are typically based on are published in the newspaper. Before going for an adjustable rate mortgage, check where you can find the published adjustments, if there are any types of sources for projections, and where the underlying index on which the adjustable rate is based is posted.

It goes without saying that the interest rates can go up or down. Therefore this type of mortgage loan can be a very viable option for people who are not too sensitive to fluctuating financing costs. Shopping for an adjustable rate mortgage can be more difficult than shopping for a fixed rate mortgage.
What are the advantages of an adjustable rate mortgage?

With a lower adjustable interest rate the monthly amount will be less. You may therefore qualify for a larger mortgage, or you may qualify for a loan easier. Lenders use your gross monthly income and your monthly mortgage payment to determine how much you can qualify for.

Given that you plan to stay in the home for a limited time period, a couple of years or so, an adjustable mortgage may be a great option. The main parts of benefits of an initial low interest rate will be gained during this period.

If current interest rates are very high, this could be the only loan choice available to you. But if you are risk avert, maybe this is not be the option for you.
The fine print of an adjustable mortgage loan

It is important that you study the details of the loan; below you find some of the basics and terminology explained. In summary when looking at an adjustable mortgage rate you should consider in addition to basic rate and index information:

* Initial rates
* Margins
* Adjustment intervals
* Rate caps and payment caps

Intial rate or teaser rate

The initial rate you are charged on the loan is generally lower than current interest rate. This can be an excellent way of purchasing a home you may not be able to get a fixed rate loan for, as the initial payments will be lower. As mentioned, when the bank is deciding how large of a mortgage you qualify for they base this on the monthly payments you can afford each month. Therefore a low initial rate on an adjustable rate mortgage can help you qualify for this type of loan but not for a fixed rate mortgage.
Margin

At the end of the initial rate term your interest rate will be based on the indexes specific for your loan. This index (or indices) is not the actual percentage interest rate you will be paying, but rather the basis on which they are calculated. In most cases some sort of a margin must be added to this to give the actual interest rate. This margin may vary. The index plus the margin will give the actual adjustable rate that the interest defaults to after the initial term.
Interval of adjustment

Be sure to ask for and understand the interval of adjustment for you mortgage. If the interval is one year, then the interest rate for the mortgage remain the same for one year and then changes in accordance with the index (and the margin). The mortgage rate will continue to adjust for the entire term of the mortgage.
Rate cap and payment cap

Besides margin and adjustment intervals, be sure to find out everything about rate caps. A rate cap is the maximum percent increase that can occur at each interval of adjustment. A payment cap is the maximum amount that your payment can go up at each adjustment interval.

Fixed Rate Mortgages

As the name implies, a fixed rate mortgage is one on which the interest rate is fixed and set for the duration of the loan. In other words, the interest rate remains the same during the entire term of the mortgage or for a stipulated length of time. Fixed rate mortgages are the most popular ones and almost 75% of all home mortgages are fixed interest rate mortgages.

The biggest benefit of a fixed rate mortgage is that you will know precisely what your mortgage interest and principal payments are going to be and hence plan your budgeting in accordance.

By virtue of the fixed mortgage rate, you are secure in the knowledge that the interest rate is going to remain unchanged for the duration of the fixed rate mortgage. For example, the lender offers a 15 year fixed loan to the buyer of a home. He charges the purchaser 6% interest which is fixed and will not change for the entire term of the loan. Whether the market rate rises to 7% or decreases to 5%, the homebuyer will continue to pay the fixed 6% interest rate. Thus a Fixed-Rate Mortgage applies the same interest rate toward monthly loan payments for the term of the loan.
Characteristics of a fixed rate mortgage

1. It is simple and easy to understand in comparison to the Adjustable Rate Mortgages (ARMs).
2. It offers more security for buyers and is very commonly used by first time home buyers.
3. It is best suited for persons who like to know what their monthly budget for expenses is going to be and for those who wish to keep their houses for a longer period of time.
4. The fixed rate interest mortgages usually charge higher rates of interest than ARMs as the risk perceived by lenders is higher.
5. The Fixed rate mortgages usually have higher initial monthly payments compared to those of adjustable rate mortgages.
6. Fixed-rate mortgages have less flexibility than adjustable rate mortgages.

In the case of adjustable rate mortgages the interest rate is not fixed, but changes during the life of the loan. These changes are linked to an index rate and move in accordance to it. The Adjustable Rate Mortgage offers you the benefit of low initial rates and therefore you are able to afford more expensive homes. In a fixed-rate mortgage, your interest rate stays fixed for the entire life of the mortgage.

Friday, July 11, 2008

More information on home equity loans and rates

If you would like more information on home equity loan rates, and how to find the best home equity loan, please fill out the form above! Home equity loan specialists will get in touch with you to consider your options and see how a home equity loan can help you make the most of what you have.

Home equity loan vs. Home equity line of credit

A home equity loan can be obtained in a lump sum or used as a revolving home equity line of credit.

A home equity loan can be either of the following:

* A fixed rate mortgage
* An adjustable rate mortgage

A homeowner who requires more money in large amounts usually applies for a home equity loan. Some expenses that make a home equity loan useful are:

* Debt consolidation
* Home repairs
* Medical bills
* College tuition for family members

Tax benefits of home equity loans

A home equity loan is also beneficial because the home equity loan rate charged is usually tax deductible, as the loan is used for its primary functions. You can use our home equity loan calculator to check what various home equity loan rates will mean for your monthly payments. Always compare offers from several lenders and brokers to obtain the lowest home equity rate possible.

Home Equity Loan & HELOC Calculator

Home Equity Loan & HELOC Calculator

The loan and line payment calculator will help you to determine your monthly payments on a mortgage loan or a line of credit. The calculator will also calculate the total amount of your payments, the total amount of interest that you pay, and your end balance on the loan or line.

Whether you have a mortgage loan or a line of credit it is important to know what your monthly payments will be. Determining what your monthly payments may be will directly affect your decision as to whether or not you can afford to set up a mortgage or a line of credit. Where traditional mortgages typically require a principal and interest fixed monthly mortgage payment, a line of credit typically requires that borrowers pay a minimum payment of just interest. Because the interest rate and monthly payments on a line of credit may change, the balance and required payments can change as well.
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All By Yourself: Sell Your Home without a Broker

July 07, 2008 - In a declining real estate market, anyone selling a home is desperately trying to squeeze home equity dollars out of a sale. More sellers are deciding to be their own brokers-a bold move that has equal amounts of risks and rewards.
A home equity loan allows you as a homeowner to get a loan by using the equity in your home as collateral. The equity consists of whatever funds you have invested in your property in order to own it or improve it.

Since it is a debt against your own property, which you are in actual possession of, a home equity loan is a secured debt. The property can be required to be sold if the creditor wants the money back that you have borrowed.

Loan

A loan is a type of debt. All material things can be lent; this article, however, focuses exclusively on monetary loans. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower.

The borrower initially receives an amount of money from the lender, which they pay back, usually but not always in regular installments, to the lender. This service is generally provided at a cost, referred to as interest on the debt. A borrower may be subject to certain restrictions known as loan covenants under the terms of the loan.

Acting as a provider of loans is one of the principal tasks for financial institutions. For other institutions, issuing of debt contracts such as bonds is a typical source of funding. Bank loans and credit are one way to increase the money supply.

Legally, a loan is a contractual promise of a debtor to repay a sum of money in exchange for the promise of a creditor to give another sum of money.

Contents

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Types of loans

Secured

A secured loan is a loan in which the borrower pledges some asset (e.g. a car or property) as collateral for the loan.

A mortgage loan is a very common type of debt instrument, used by many individuals to purchase housing. In this arrangement, the money is used to purchase the property. The financial institution, however, is given security — a lien on the title to the house — until the mortgage is paid off in full. If the borrower defaults on the loan, the bank would have the legal right to repossess the house and sell it, to recover sums owing to it.

In some instances, a loan taken out to purchase a new or used car may be secured by the car, in much the same way as a mortgage is secured by housing. The duration of the loan period is considerably shorter — often corresponding to the useful life of the car. There are two types of auto loans, direct and indirect. A direct auto loan is where a bank gives the loan directly to a consumer. An indirect auto loan is where a car dealership acts as an intermediary between the bank or financial institution and the consumer.

A type of loan especially used in limited partnership agreements is the recourse note.

A stock hedge loan is a special type of securities lending whereby the stock of a borrower is hedged by the lender against loss, using options or other hedging strategies to reduce lender risk.[citation needed]

[edit] Unsecured

Unsecured loans are monetary loans that are not secured against the borrowers assets. These may be available from financial institutions under many different guises or marketing packages:

The interest rates applicable to these different forms may vary depending on the lender and the borrower. These may or may not be regulated by law. In the United Kingdom, when applied to individuals, these may come under the Consumer Credit Act 1974.

Abuses in lending

Predatory lending is one form of abuse in the granting of loans. It usually involves granting a loan in order to put the borrower in a position that one can gain advantage over him or her. Where the moneylender is not authorised, it could be considered a loan shark.

Usury is a different form of abuse, where the lender charges excessive interest. In different time periods and cultures the acceptable interest rate has varied, from no interest at all to unlimited interest rates. Credit card companies in some countries have been accused by consumer organisations of lending at usurious interest rates and making money out of frivolous "extra charges". [1]

Abuses can also take place in the form of the customer abusing the lender by not repaying the loan or with an intent to defraud the lender.


United States taxes

Most of the basic rules governing how loans are handled for tax purposes in the United States are uncodified by both Congress (the Internal Revenue Code) and the Treasury Department (Treasury Regulations — another set of rules that interpret the Internal Revenue Code).[2] Yet such rules are universally accepted.[3]

1. A loan is not gross income to the borrower.[4] Since the borrower has the obligation to repay the loan, the borrower has no accession to wealth.[5]

2. The lender may not deduct the amount of the loan.[6] The rationale here is that one asset (the cash) has been converted into a different asset (a promise of repayment).[7] Deductions are not typically available when an outlay serves to create a new or different asset.[8]

3. The amount paid to satisfy the loan obligation is not deductible by the borrower.[9]

4. Repayment of the loan is not gross income to the lender.[10] In effect, the promise of repayment is converted back to cash, with no accession to wealth by the lender.[11]

5. Interest paid to the lender is included in the lender’s gross income.[12] Interest paid represents compensation for the use of the lender’s money or property and thus represents profit or an accession to wealth to the lender.[13] Interest income can be attributed to lenders even if the lender doesn’t charge a minimum amount of interest.[14]

6. Interest paid to the lender may be deductible by the borrower.[15] In general, interest paid in connection with the borrower’s business activity is deductible, while interest paid on personal loans are not deductible.[16] The major exception here is interest paid on a home mortgage.[17]

Income from discharge of indebtedness

Although a loan does not start out as income to the borrower, it becomes income to the borrower if the borrower is discharged of indebtedness. [18] Thus, if a debt is discharged, then the borrower essentially has received income equal to the amount of the indebtedness. The Internal Revenue Code lists “Income from Discharge of Indebtedness” in Section 62(a)(12) as a source of gross income.

Example: X owes Y $50,000. If Y discharges the indebtedness, then X no longer owes Y $50,000. For purposes of calculating income, this should be treated the same way as if Y gave X $50,000.

For a more detailed description of the “discharge of indebtedness”, look at Section 108 (Cancellation of Debt (COD) Income) of the Internal Revenue Code.[19]

See also