In this down economy, obtaining a home loan for a first time homeowner, investor or repeat buyer may be too daunting. Or, lenders may assess your financial situation too risky to lend to because of previous bad credit. Or, perhaps you are a small business owner that does not have sufficient monthly income and lenders are afraid that you may not be able to make the payments monthly. Whatever the reason is, there are many alternatives for large purchases than taking out a traditional home loan. Here is a look at other viable options:
Life Insurance Policy – As long as you are making regular monthly payments on a life insurance policy, cash value is accumulated over time. Borrowing against the cash value of your life insurance policy is much easier than obtaining a home loan since there are little to no requirements and there is no loan qualification. Prior to borrowing money through your life insurance policy, you should determine the interest rate on the loan, the taxability of the withdrawal and the effect of the loan on your death benefits. Before borrowing from your life insurance policy, do not forget the reason that you took out the loan in the first place. Ensure that owning the property outweighs having less death benefits.
Payment Protection Insurance Claims – PPI claims are another alternative to home loans. This type of payment protection ensures that repayment on a debt is ensured even after the death of the borrower.. The amount of PPI claims are not only based on the payments but the interest incurred resulting from those payments. Determining whether you have any PPI claims is a great way to obtain the money needed for larger purchases.
Self-Directed IRA – A Self-directed IRA is a way to invest on non-traditional assets such as a home or property. Self-directed IRAs are different from traditional IRAs and Roth’s because they are broader and are most often controlled by the policyholder. Purchasing a home directly from your own self-directed IRA is against the rules of the IRS since this is considered self-dealing. However, a person who is not related to you or your business can lend you money though their self-directed IRA for profit or interest. It is common practice for property flippers to use both their own savings and borrow from someone else’s IRA to complete the sale on a particular property.
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The Perkins Loan is a Federal Student Loan provided by the U.S. government
to undergraduate and graduate students in need of financial assistance. Perkins
Loans are allotted to students based on their current income status.
It is recommended that students apply for federal loans such as the Perkins
Loan, and others, before applying for private student loans. Students are
also encouraged to apply for grants and scholarships before seeking out any
type of loan.
U.S. students may apply up to $27,500 in undergraduate school related fees.
Graduate students may apply for up to $60,000 in school related fees.
School related fees include items such as school tuition, housing, meal
plans, books, etc.
It is important when researching loans to pay close attention to interest
rates. Federal Loan Interest rates are normally less expensive than Private
Loan Interest Rates. The Federal Perkins Loan Interest rate is only 5%.
This is a set interest rate for all students.
Upon qualifying for a Perkins Loan, students may make payments directly to
their school. Please be aware that not all schools qualify for a Perkins
Loan, but there are approximately 1,700 schools in the U.S. that can grant
Perkins Loans to students.
How to apply for a Federal Perkins Loan
There are a few simple steps to applying for a Federal Perkins Loan. Most
schools provide students with a Financial Aid Department, which can also
assist in this process.
The first step to applying is to complete a form for all Federal Student
Loans called the FAFSA (Free Application for Federal Student Aid). This
application can be found on the following web site- http://www.fafsa.ed.gov.
The next step is to fill out a Perkins Promissory Note. The Promissory Note
is a legal contract the student must sign before obtaining government
funded loans. A copy of this document will be given to the student; it
details the agreement specification and repayment options such as interest
rates, forbearance, and grace periods.
Upon completion of these applications, students are awarded varying
amounts. Some of the determining factors on how much a student receives are
the student’s income level, the amount of loan money the school still has
available and the amount of other student loans obtained by that student.
How do I pay off a Perkins Loan?
One benefit of applying for a Perkins Student Loan is that those in certain
professions may be eligible for a student loan deduction or write off. For
example, both teachers and those in the Peace Corps are eligible for
reductions in their loans, based upon how much they owe in loans and how
long they work in respective fields.
Upon graduating, students have nine months to seek employment and begin
paying off this type of student loan. This applies for students that are
enrolled in school at least half-time. If a student is not enrolled in
school at least half-time, there is a possibility that the nine month grace
period will start before graduation.
It is also worthwhile to note that students do not have to pay interest for
a Federal Perkins Loan until after graduation. For more information on
Perkins Loans log onto the U.S. Department of Education Website-
For anyone with bad credit score it’s nearly impossible to get financial assistance in order fulfil their financial needs. Bad credit holders can’t get loans and credit cards very easily and conditions get worse when they don’t have anyone to resort in moments of emergency. For these people payday loans act as a saviour in bad financial situations. It is a fast and easy way to get immediate money to tackle unexpected or unfortunate events such as medical bills, child’s education expenses, car breakdown, garage repair and so on.
If you have bad credit and want to improve your credit ratings, you can take a financial assistance in the form of a payday loan. These loans are for individuals who get rejected for financial help from banks and other financial institutions because of bad credit score. You might have bad credit because of arrears, defaults, court judgments, insolvency, foreclosure, missed payments and individual voluntary agreements. The hottest benefit of these loans is that it does not involve credit check and lengthy paperwork procedure because of which you can get loan approval instantly. As there are several payday loans lenders are available online and offline, you have to take careful steps to safeguard yourself.
Here are few steps you should follow before obtaining payday loans:
Research the different options:
Before signing for payday loan or any other kind of loan, research and look around for all other alternatives. Many lenders charge higher interest rates than normal to the poor credit holders, approach different lenders and compare their interest rates.
Examine fees involved in the loan:
Some payday lenders charge huge fees in starting to make loan arrangements. Make sure you go through the agreement properly before signing and keep an eye on that condition apply clause. Avoid those loan offers that are more expensive than you anticipated.
Many lenders have specific eligibility criteria to make sure that borrowers don’t lead to default. Find out the eligibility criteria and make sure that you qualify before trying to get a payday loan. Some of the basic eligibility criteria followed by most lenders is:
• You need to be 18 years of age or above
• You need to be legal citizen of the country in which you are applying
• You need to have some form of permanent income
• You need to have an active bank account and debit card for repayment
• You need to have active email address for further communication
Establish a value for your future pay cheque:
These loans are cash advances against your next pay cheque and you have to repay loan amount in full. However, many lenders often limit the amount to a percentage of your pay, by considering your regular expenses, so talk to your lender and agree on a specific amount for the loan.
My name is Alicia. I am a tech writer from UK. I am into Finance. Catch me @financeportalso at http://www.dreampayday.co.uk
Today college and post secondary education costs are steadily on the rise and with expanding technology threatening some of the higher paying jobs, its no wonder that many people are questioning the value of a college education.
Only 20 or 30 years ago no one hardly even questioned the value of a college degree. Sure, a couple of skeptics liked to point out that neither Bill Gates nor Steve Jobs graduated from college, and parents complained about the tuition bill. Still, when college acceptances went out in the spring, people cheered, believing that admission represented the ticket to a good job and career.
If you’ve been paying attention to tuition costs for colleges and universities for the past several years, you’ve probably noticed that the price of higher education has increased dramatically.
According to the IES National Center for Education Statistics, while the average cost of tuition in current dollars at all universities in the 1990-91 school year was $6,562, it nearly tripled to an average cost of $17,143 by the 2008-09 school year.
As noted by a report from the nonprofit College Board, costs for public four-year institutions in 2010 increased 7.9 percent to an average of $7,605, while private nonprofit colleges and universities jumped 4.5 percent over the previous year to an average cost of $27,293.
The steady rise in tuition over the past few decades has left many wondering whether the cost of college matches the payoff for graduates once they receive their diplomas.
To see that average incomes for bachelor’s degree recipients haven’t increased much over the past couple of decades but tuition has skyrocketed over roughly the same period makes some question whether higher education is actually worth the cost.
What’s interesting is that a recent study conducted by Country Financial revealed 26 percent of Americans surveyed believe a college education isn’t a good financial investment. The main reason respondents felt this way is because college costs have increased too much and there simply aren’t enough job prospects available once students actually earn their degrees.
However, according to the authors of Academically Adrift: Limited Learning on College Campuses, there is even more reason to believe college isn’t a good investment.
The authors found that 45 percent of students in higher education make no gains in their critical reasoning and thinking skills, or writing ability, after two years of college. Even worse, more than one out of three college seniors were no better at writing and thinking than they were when they first arrived at college.
It’s a good idea to create as long-term a plan as possible. Look at the career you want to pursue, how much education is required to obtain the training necessary and what schools provide great values for the education received.
Also, you want to look at ways to finance your education. Of course, the best route is to acquire scholarships, grants or other sources of funds that allow you to pay for college without student loans. Also, you could consider working on- or off-campus to help finance your education. You might even be able to take advantage of tuition reimbursement from your company.
Thinking of buying or building that perfect home? Before you sign on the dotted line some research into home loan interest rates will be needed. This will give you a much better chance of obtaining some interest rate savings.
To begin finding the best home loan interest rates you will want to study the current rates and rate movements or trends. Home loan interest rates generally reflect the over all picture of interest rates. They basically will follow Wall Street Securities with their rise and fall.
Home loan interest rates combined with your individual financial status would then determine how much you can borrow. This would have an impact on how much house you can buy. Higher interest rates would mean you may have to settle for a bit smaller home than you originally had planned.
One of the things that you may consider to lower home loan interest rates is to consider if you are willing to pay points or not. A point is 1% of the total loan amount. It is the up front fee that would reduce your monthly interest rate and the total amount of interest over the length of the loan. By paying points you are essentially buying your way to a better rate and trading between paying now vs. paying later. Paying points should only be considered if you plan on keeping the loan for at least four years. The reason this is suggested is gives you time to get back the upfront money with the lower monthly payments.
Another factor to consider in regards to home loan interest rates length of loan. A typical 30 year mortgage will have a higher interest rate than that of a 15 year mortgage. The 30 year mortgage will have lower monthly payments but you would pay thousands of dollars more in interest rates over the life of the loan than that of a 15 year mortgage.
Also a higher down payment would have a positive effect on home loan interest rates. This down payment would typically need to 20 percent or more. This would furnish you with more equity in you home giving you a much better interest rate.
Most lenders offer a variety of options to help assist you with home loan interest rates. When shopping around make sure you are looking at comparable points and rates amongst the different lenders.
One of the final things in regards to considering with a home loan interest rates is, do you want a fixed rate mortgage or an adjustable rate mortgage. A fixed rate will allow you more money, is fixed throughout the life of the loan. This kind of loan the interest rate stays the same. The other a variable rate has the possibility of going up or down bed By paying points you are essentially buying your way to a better depending on the current market.
Do your homework on home loan interest rates, choose between one of the many programs offered and then decide on how much a down payment you can afford. In the long run this research will pay off handsomely for you.
Tired from paying interest on student loans every month, afraid of the deadline of paying back loans, there is a solution of your tensions, STUDENT LOAN Consolidation. In student loan consolidation, a student may enjoy many benefits; some of them are following below.
lower monthly payments
only one monthly payment rather than paying separately
Student loan consolidation rates are very low, fixed interest rate cannot exceed 8.25% at any time, coupled with national interest rates at a 40-year low.
For the application of student loan consolidation, you don’t have to offer any credit card check or processing fees.
the terms and payment plans of student loan consolidation are very flexible, the provider can mode them according to your financial needs
While you don’t need to consolidate in order to take advantage of this one, you can knock an additional .25% off your rate by making your monthly payment electronically. This electronic debit option does more than save you money – it decreases your chances of forgetting a payment.
The option to prepay your loan at any time without incurring a penalty
Sometimes a student got confused about the qualification of applying for student loan consolidation. But now government clears that students who are still in their grace period or cannot re pay their owe money on a student loans can qualify to get student loan consolidation or those who are still in school may consolidate their government-guaranteed loans
Today in the market, there are many companies offering student loans to the college students, but when it comes to their interest rates, they are charging very high. A student has to pay interest on their loans, every month, which is quite impossible for some due to lack of money and time. When it comes time to pay back their student loans, it can be a real burden and a distraction from their career. For those, student loan consolidation is a best deal and step to follow. In this, you don’t even get low interest rates, but can enjoy other facilities including grace period of six to nine months, only one monthly payments, tension-free mind etc.
Due to existence of government sector, a student has an opportunity to enjoy the offers given by the government as they are quite competitive than private. Student loan consolidation rates is fixed and cant be changed after signing the contracts and whenever student has graduated or ceased to be a full time student, he can also enjoy the benefit of grace period of six to nine months which allows him to get employed and repay their loans easily.
Have you been trying to find out what bad credit finance options were available? Perhaps you’re in the market for a new car or truck, but aren’t sure if you can find a dealer or lender who’ll offer you a bad credit finance?
You shouldn’t worry too much about bad credit finance options, because there are several financing options available regardless of your credit history… some of them charge higher interest rates or require some additional security, but in the end may be just what you’re looking for.
If you’re looking for a bad credit finance for a new or used vehicle, your best option is most likely going to be to visit a finance company as opposed to a traditional bank.
Some finance companies are more likely to offer bad credit finance options for vehicles than others, and the financing will usually depend upon the type of vehicle being financed, where the vehicle is being purchased from, and what sort of insurance and driving record you have.
Other factors that will be taken into consideration include your annual and monthly income, any cosigners that you might have for the loan, and any recommendations or referrals that you might have.
Finding someone to offer you a bad credit finance for a house or other real estate can sometimes be tricky, but generally real estate shouldn’t be too difficult to finance.
Major factors in getting a mortgage lender to approve you for bad credit finance options include your income, any insurance that you will purchase for the house or real estate, the amount of a down payment that you’re willing to offer, and any references of former landlords that you can offer.
Mortgage lenders for bad credit finance loans can be found online, at finance companies, and at some real estate and property management services.
Should you be seeking bad credit finance options for other items (such as collectibles or electronics), you might find your search to be a little more difficult.
Smaller and less valuable items are often harder to repossess and find buyers for than vehicles and real estate, so many finance companies are hesitant to lend money to people with bad credit in order to purchase these items. Instead of financing, you might want to consider other venues for bad credit loans (such as auto title loans and the like) to get you the money that you need for your purchases.
Some lenders will offer financing for these items, though, but the only way to find out is to see for yourself. Should you be rejected, asking for a reference as to where to find financing might point you in the right direction.
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About the Author
John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the www.directonlineloans.co.uk website.