Home Loan Refinance Information

By John Bear

If you have a home loan and your property went up in a ten percent or more value since you took out your current loan, you might make a good candidate for refinancing. It cannot only save you money on your mortgage payments, but it can also improve your terms, or both.

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

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

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

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

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

Comparison shopping for a mortgage, on the other hand, will help you find the best home loan offer. The internet proves to be a very useful tool for quickly locating and comparing mortgage offers, and you can even easily screen mortgage loans from dozens of lenders with little effort and time.

A common mistake of homeowners when doing home loan refinance is rushing things through and just accepting the first promising offer they receive. It is important to take your time and learn more about mortgage terminology, as it will really let you understand home loan offers in detail. Keep in mind, you will be able to save yourself more money if you never rush on your financial decisions.

About the Author:

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Watch the BIG Board - Mini Dow Tip

By Doug West

We are often asked why we prefer the Mini-Dow index to say the S&P or Russell minis. While any index will do, we especially like the mini-Dow.

Because of the faster movement of the Dow versus the S&P 500, the mini-Dow more closely follows it's big board parent.

So if it is just a matter of speed, then the mini-Russell would be even better right? Not exactly. The problem with the Russell is the low volume. This will no doubt change in the future. The mini-Dow had too low a volume for our money just a couple years ago, but that has now changed.

One more reason why we prefer the Mini-Dow is that we like no-cost tools, and it is much easier to find a reliable Dow chart. In fact there are many online that work just fine.

No matter which Index you prefer, we feel it is an advantage to watch the big board chart, and not the mini chart. We also prefer the 5 minute time frame.

Many traders watch both, which is what I did years ago before deciding to focus on the big board. Here's why. I found that I would not move on what the mini chart was telling me unless I confirmed it with the big board. A popular confirmation among traders. It finally hit me that if I would not make a trade without confirming it with the big board, then why did I need the mini chart at all?

When I dropped the mini chart and focused on the big board movement, my trading improved. I have sinced confirmed this strategy with Hundreds of my students and other traders. Just recently, one of my students who moved on to using the mini-chart (a paid service I might add), came back to our style and is now focusing on the no-cost big board chart we use. He also confirmed that his trading improved, and he now sees why we focus on the big board.

The mini chart (even in the 5 min time frame) is like trading with a 1 minute chart. There are too many head fake moves that get you in a trade before it has fully developed. The big board averages some of those moves out for you. It keeps you on the sidelines when you should be. Sure, you might not get in as early on some runs, but in the long term it will save you!

It is difficult to catch any move from top to bottom or vice-versa, but by watching the big board you can fairly easily get a nice chunk out of the middle (or many chunks with our BIG MONEY small trades strategy). A few nice chunks a week will keep you from needing a bail out plan!

About the Author:

Mini-Dow Index Trading Made Simple Doug West has taught thousands how to grow wealth with simple Index Trading and online marketing of products and services. He has affiliates that have earned $100k in less than a year.

Home Buddies Quarterly Economic Report - Part 3 - Opportunities

By Cliff Pape

The past few weeks we have looked at an overview of the U.S. economy as a whole. Now we will look at what is likely to unfold in the mortgage and real estate markets next year. Then I will go over some opportunities that come up in this stage of the real estate cycle.

Credit and Financial Markets

It seems the biggest story coming out of 2008 is the Fed's announcement in November to buy up $600 billion in unsecured debt and mortgage-backed securities from Fannie and Freddie. The push is an attempt by the Federal Reserve and the Treasury to steer toward lower mortgage rates - not just lower short-term rates.

The sole reason the Fed did this was to lower debt cost (i.e. make it cheaper to obtain a mortgage). They are attempting to kill two birds with one stone by making mortgages cheaper in hopes of enticing potential single family home buyers with credit to come off of the sidelines and purchase.

Furthermore, if home buyers jump into the real estate market, this will further stabilize home values which will help the banks' balance sheets. All of this bodes well for mortgage brokers and loan officers because the ultimate goal of the government is to get mortgage lenders to loosen credit and they have committed to do it. At some point during 2009 mortgage lending should begin to pick up. Expect a refinance boom when the mess clears up.

Real Estate Markets

There are a few things to keep an eye on in Houston. If housing permits continue to contract, it could be a while before the national residential real estate scene improves. Several markets such as Houston are still bucking the national trend, but, even in these markets, permits are beginning to contract which is pointing toward a slow-down as we head into 2009.

Layoffs will be the biggest indicator for Houston for next year. If there are massive job losses then the already fragile market could see a big setback.

Opportunities for Investors

With all the "fear" that is surrounding the mortgage and real estate markets, there has never been a better time to buy single family residential homes. Consumer concern over the financial crisis is causing real estate prices in stable markets, such as Houston, to fall under what the market fundamentals in Houston would otherwise warrant.

In addition, with lending standards still remaining tight, many buyers are unable to credit-qualify to purchase a single family home. This is creating, and will continue to create, a great opportunity for savvy investors to pick up investment properties at undervalued prices.

About the Author:

Home Buddies is a Houston credit repair coach for business and investors in real estate. Home Buddies coaches clients through the process of restoring credit and creates a business development strategy to help them overcome obstacles to financing properties and growing their portfolio.

Easy Penny Stocks Tips You Can Use To Cash In!

By Sam Lockwood

Penny stocks have been around for a long time - they've been part of American investment strategies since the 19th century. That's where these stocks were named, since the modern penny stock actually costs somewhere between a dime and five dollars, not a penny. Let's have a look at the risks you incur by investing in these stocks, as well as the ways they can help investors profit.

Penny stocks are share offerings made by companies that are either too new or too small to be listed in the major exchanges. These have a potential to grow a lot for a relatively small initial investment, but they can also be part of unpleasant pump and dump schemes. Like anything else in the over the counter (OTC) market, the buyer should beware.

Choosing penny stocks reasonably means that you need to have an independent appraisal of the company's business model. Much like buying shares of any other kind of publicly traded company, it's necessary to understand everything about the company. That means knowing what they do, what they make, what products are offered, how their business model works and who their major competitors are.

One of the things that makes penny stocks so appealing is the fact that most of the businesses offering them are extremely simple. One typical kind of penny stock is a mining company that profits only when the price of the material it extracts goes above a certain level. There are also some oil exploration stocks that are valued in the same way.

Penny stocks are rated as a high risk vehicle by the Securities and Exchange commission. Some of the risks you'll encounter when dealing with these stocks include incomplete and indirect financial reporting, limited liquidity and even complete fraud. People who are playing with a day trading strategy will find that sudden demands for penny stock creates enormous volatility. Penny stocks are hard to short sell for this reason.

The reporting guidelines on penny stocks are a lot less strict than they are for stocks listed on the national exchanges. In fact, some stocks will just delist for a few days. In the investment type known as the Pink Sheets, there's almost no regulatory requirement on penny stocks, no minimum accounting standards or reporting guidelines.

Because there are no generally accepted standards or standardization for penny stocks, they're an area that's extremely vulnerable to fraud and manipulation. People can pose as independent observers, then run up the price of penny stocks. All they have to do then is de list it, leaving buyer with nothing in what's classically called a pump and dump scheme.

Of course, that doesn't mean you should never invest in penny stocks. There are lots of real, legitimate startup companies out there, and they need to have a good place to get up and running. If you're able to pick a winner, you'll get an impressive return.

If you have the ability to spot companies that have promise, your payout will be huge. Even if you lose on most of your stock picks, the single winner will be such a big gain that you'll forget about the ones that didn't work.

About the Author:

For more penny stocks tips head over and take a look at our website - it's there for people looking to make money! Click Here for a proven penny stock system that will make you money!

How Prepaid Credit Cards Work

By Gray Rollins

A very common problem that we all face is to keep our credit intact. Besides your being an adult, you can only be eligible to get credit if you are financially viable and sometimes even that is not enough if you are unable to make the due payments in time. It is therefore not a child's play to maintain a perfect credit in order to avail maximum benefits with that credit.

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

If you really don't want to misuse your credit, then a prepaid credit card may be ideal for you. The prepaid credit cards are generally affiliated with some reputed credit card companies. Thus you will not have to be concerned about it being legitimate or being good. Still it is always better to know more about that company before you apply for this card. With the right card, you will be able to build the credit backup for yourself. Don't take any hasty decision, do a proper search and study before going for a credit card if you are looking for maximum gains.

A prepaid card is the perfect way of controlling your account and the amount you spend. You are the one who deposits money to the card so you can easily control how much money you plan to spend. When you pay with this card, you will not be allowed to spend more than what is there in the card. So the transaction will not be valid. This will keep the credit safe as you will never jump your credit limit and will not have to pay any over the limit fees.

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

For anyone who wants to control their spending and improve their credit, prepaid credit card is just the right choice. Just spend some time in studying all the companies available before deciding one for you. You have to know all the hidden facts too. So do ask them how much do they charge you for every transaction. And how you can improve your overall credit score? Do they also charge for putting money on card and taking it off too?

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

If you are facing bad credit days or you are looking for some credit, then go for a prepaid credit card. This will meet all your requirements and will provide you with a lot of avenues to prosper. You will have an easy life, as it will make you free from all your credit problems.

About the Author:

Get our number one recommended prepaid credit card from PrepaidCreditCardDirect.com

Can a home loan modification program help you save your home?

By J. Ochs

Foreclosure rates are at an all-time high in the US right now. Stories of houses being abandoned by their owners and turned back over to the bank are all too common. The funny thing is that the banks don't even want the houses back, as they aren't in the real estate business; they're in the business of banking. This is an important fact to keep in mind if you happen to be in a place where you can't afford to pay for your mortgage anymore. Whether you're in financial distress in general, unable to keep up with your adjustable rate mortgage or some other bind, there ARE programs out there that will help you restructure your current loan and allow you to keep your house and get your loan back in order.

These programs are referred to as Loan Modification, Loss Mitigation, or Home Loan Workout programs. You do need to exercise caution when enrolling in this type of program and make sure you are working with a reputable company, but the programs can be extremely successful and can offer great financial relief.

Let's say you have a home worth $340,000 and you have a $400,000 mortgage at 8%. If the home is foreclosed on, the bank has two options: auction it off, or re-list it. Either option could spell financial disaster for the bank, as doing so could add on another $60,000 in losses.

In this example, bank will lose at least $120,000 if a client decides to "walk away". Through modification and lowering interest rate to 5.25% on a 30yr fixed term, bank will make close to $400,000 in future interest payments. The result is a win-win for all parties involved.

Sometimes, homeowners can work out their own loan modification, but the default rate is often over 50%. Working with an attorney to formulate a modified loan reduces the default percentage to 5% or less. As you can imagine, banks prefer working with attorneys.

The costs vary for this type of program but are usually fully refundable if the attorneys are not able to modify your home loan. The types of workout remedies that they are able to achieve are amazing. They range from interest rate reductions, lower monthly payments, extended payment terms, and loan principal reduction.

If you are having trouble making your current mortgage payments or are in an adjustable rate mortgage that has or is about to adjust, give us a call and get a free consultation to see what can be done for you. There is no charge unless we determine that we can help and you decide to get started. Give us a call at 1.888.282.1011 and ask about our home loan modification program.

About the Author:

The author, Jon Ochs has over 12 years experience in the credit and debt industry and is the founder/CEO of NCA Credit Repair, one of the most respected Loan Modification Programs in the nation.

?Early Retirement ??" Something to Think About

By William Blake

People always get scared out of their minds when someone mentions early retirement planning. Early retirement planning is not something you do with your regular 9 to 5 job. Early retirement planning is a mindset that allows you to recognize that the only people that save their whole working lives for retirement are the ones who wind up broke and angry when they reach their mid to late 60's.

To plan for early retirement you have to think beyond the regular full time job that you have and even beyond the 401K you are working hard to build. There are other avenues of saving for your future so that you can enjoy retirement at an early age.

These avenues can really help your finances grow so that you will be able to stop working well before you reach the age of 65. And even after you reached your financial goal you may find it easy to continue following the same pattern and continue to build on your savings.

If you look at the history of the financial world and you consider the current state of affairs with government funds the future looks really bleak. That is especially true if you are resting your hope on social security benefits which may not be around when you are ready to draw on them. And because of the unstable market many have retired with nothing in their 401K. A different approach is needed. You need to invest.

The Possibilities Are Endless

What should you invest in? Real estate is the surest investment you can make. Though it may be a sure investment it is not one to be jumped into without educating yourself through courses and books that are available.

There are always advertisements out there telling you how you can make millions in a day. To learn how to avoid the frauds and find the real investment opportunities you have to educate yourself. With a little know how you can find properties to invest in that have real potential for huge value increases.

Another way to invest in property is to buy rental property that you can earn money on during your working years and then sell for a nice profit when you are ready to retire. Or you can invest property that needs some work and fix it up to sell for a profit. There are so many possibilities when it comes to real estate investing.

About the Author:

How would you like to come up with some extra cash to help pay off your credit card bills starting today? Visit the Debt Reduction Academy website, where you can sign up to receive your free 5 day mini course "Operation Money-Find: How To Find Money To Start Paying Off Your Debt This Month". Go get your copy now at http://www.debtreductionacademy.com/minicourse.php

How To Improve Your Credit Score

By John Cooper

To improve your credit score can seem like an impossible task. The scoring model seems to factor in tons of information and makes it seem as if you have no control over your score.

This is incorrect. If you take a few steps you can positively influence your credit score.

1. Dispute and remove negative items on your credit report. This can be done yourself or you can hire a service to do it on your behalf.

2. If you have a bad credit item verified or delinquent account then pay them. Work out a payment plan and have them remove the negative credit item in exchange for your payment.

3. Pay your bills on time. It is alleged that missing one monthly payment can cause your score to drop by up to 50 points.

4. Open a new credit line. This is best if it is a revolving line of credit, for example an unsecured credit card.

By paying your monthly bill you will develop a positive payment history. This is a heavily weighted factor when your score is being calculated. If your score is currently to low to get an unsecured credit card then open a secured card just make sure it reports to all three bureaus.

In addition try to keep your monthly balance at 10% of your available credit. Doing this shows the bureaus that you do in fact use your credit and you use it responsibly.

5. Pay off large debt. Your score will get a bump if you have high available credit to debt. The bureaus want to make sure you are not overextended and by showing them you have available credit your score will get a bump.

These five factors are the only things you need to concern yourself with when trying to improve your credit score. There is one last factor however it is shadowed in controversy.

6. Piggyback credit, this is where you become an authorized user on a high credit limit credit card. The benefit is this account is now reported on your credit report and adding a tremendous boost.

This tactic has been widely abused by some credit repair services. The scoring model has changed to discount this method however it is disputed as to if that change has occurred or not.

In sum if you can take care of steps one through five then you will improve your score. With a high credit score your quality of life will also improve.

About the Author:

To learn more about how to remove judgments, charge offs, late payments, collections or any negative mark or to learn about lexington law firm a professional credit repair service visit us.