Although it makes sense to get in touch with a final expense insurance company to cover your dependents in the eventuality of your untimely death, there are integrity issues surrounding the insurance companies and agents. Broadly there can be 3 ways your life insurance company is scamming you. We have enlisted them for your benefit.
Selling Coverage that you don’t need!
The final expense insurance companies thrive on the fact that most people don’t understand their life insurance needs. With standard products, they try to sell you coverage that you might not need, but, which are lucrative for them. The insurance agents expedite the process so that you skip the fine print and sign up for a coverage that is ill-suited to your needs. The trick is to play on your fear factor and sell you heavy insurance, even if you don’t have dependents.
Coaxing you to pay ‘Cash’
We strongly suggest, do not pay your premium through cash to an agent. Further, do ensure that you get a receipt for the payment. There are numerous fraudulent entities posing as genuine insurance agencies that extract hard cash from you in lieu of insurance premium. They ask you to sign at blank spaces in a form, assuring you that it is just a formality. Once you have fallen for their trick, you are left without an insurance coverage. The worst part is that most victims only come to know of this scam, when they have met with some mishap and there is not insurance to cover them.
Luring you with benefits!
Insurance agencies and agents have a way of promising you unbelievable benefits out a life insurance policy. Life insurance agents might offer you plans, with a guarantee that the policy would run premium-free for a specific period. Some agents play it smart and offer you great discounts for signing you up for a new policy, while replacing an old policy. The trick is that the old coverage gets terminated and new coverage does not get initiated due to the cumbersome procedural bottlenecks. Thus, exposing you to risk without cover.
Jumbo mortgage rates Florida programs are loans that are taken to buy a property, for which the property itself is used as collateral. Owning a home is a very big, and usually a one-time investment for many. With increasing real estate prices and decreasing interest rates on loans, many people are using the home mortgage loans to buy property.
Florida jumbo mortgage rates are the rates of interest that are to be paid along with the capital for taking the mortgage loan. Home mortgage rates do not remain steady over a long period of time. A lower rate means lower monthly payments, leading to lower costs on the property. Depending on the kind of interest rate, there are two kinds of home mortgage loans: Fixed Rate Mortgages (FRMs) and Adjustable Rate Mortgages (ARMs). FRMs are mortgages for which the rate of interest remains the same for the entire period of the loan. These can be for a period of 10, 15, 20 or even 30 years. Adjustable rate mortgages, on the other hand, have fluctuating rates of interest. This is ideal when there is likelihood of the rates to decrease. ARMs are preferred by people who plan for shorter periods. ARMs are offered at lower rates than FRMs to attract customers, but they also contain a certain level of risk. The fixed rate mortgages are a very predictable, safe option.
Mortgage rates in Florida fluctuate on the basis of an economic index. The mortgage bond market works according to a process called securitization. This securitization enables creation of more loans and greater mobility of funds by keeping the mortgage rates low and allowing more credit for ideal customers.
The best source for knowing about home mortgage loan rates is the Internet. Most home mortgage loan companies provide information through their websites also. These rates are updated daily. Their sites also have easy-to-use home mortgage calculators that give all information, including payments to be made each month and the tax advantages, with the single click of a button. Most of them also have financial advisors who would provide advice online, or over the phone. A professional mortgage lender would be able to provide accurate information about the mortgage loan rates as and when they are applicable.
Discussions of mortgages often focus on interest rates, but there is a much more basic decision to make. Should you go with a 30 year No Doc Mortgage term or a 15 year No Doc Mortgage term?
30 Year vs. 15 Year Mortgages
Any discussion of mortgages tends to turn on two points. How can you qualify for the most money with the lowest payment? How can you get the lowest interest rate for the mortgage? While these are two important issues, there is an addition one that people fail to consider, resulting in significant wasted money.
The term of a mortgage is extremely critical for a couple of reason. First, it sets the length of the obligation you are undertaking. Second, it defines the amount of interest you are going to pay over the life of the loan. These are huge issues when it comes to building equity.
The longer the loan, the more total interest you are going to pay. The trade off, of course, is you are going to have smaller monthly payments the farther you stretch out the obligation. While this may sound like a good goal when you first get the mortgage, it can backfire on you in the long run.
Most people focus on interest rates as a way to save money on mortgages. This is a valid approach, but playing with the length of the loan is a better way to save money. If you can cut the payments in half by going with a shorter loan, you can save huge amounts on the total interest repaid to a lender.
The decision on the term of the loan is relatively simple, but entirely dependent upon your personal situation. There is no absolutely correct choice. First, you need to determine if you can comfortably afford the higher payments that come with a shorter term loan. In general, a 15 year mortgage will have payments 20 to 25 percent higher than a 30 year loan. Of course, you will pay the loan off faster, to wit, be building equity in the home quicker.
The modern mortgage industry has a variety of different term length products. When applying for a loan, take the time to evaluate the different terms to see if you can find a loan that is perfect for your situation.
Mortgage loans are financial loans taken for real estate properties that the borrower has to repay with interest within a fixed period of time. A mortgage loan requires some sort of security for the lender. This security is called the collateral and in most cases, it is the real estate property itself for which the mortgage loan has been taken. Since the property itself is kept as the collateral, no further security is needed.
The person who lends the mortgage loan is called the mortgagee, while the person who borrows the loan is called the mortgagor. The mortgagee and mortgagor are bound by the mortgage loan agreement. The agreement entitles the mortgagor to receive a financial loan from the mortgagee. The promissory note in the agreement secures the mortgagee, which entitles them to the collateral and a promise made by the mortgagor to repay the mortgage loan in due time. In the USA, the typical period for a mortgage loan may be 10, 15, 20 or 30 years.
There are two fundamental types of mortgage loans in the USA – fixed-rate mortgages and adjustable-rate mortgages. Fixed-rate mortgages have interest rates that are locked for the life of the mortgage, while adjustable-rate mortgages have interest rates that may go up or down according to some market index. Hence, fixed-rate mortgages provide security to the mortgagor, while adjustable-rate mortgages provide security to the mortgagee. If there are dues on monthly payments, then they are added together and constitute a balloon mortgage loan.
The process of buying a loan is called originating the loan. This is done between the mortgagor and the mortgagee, sometimes involving a mortgage broker. The broker charges a commission on every loan originated, which is collected from either the mortgagor or the mortgagee. A broker’s involvement increases the cost of the entire mortgage.
Mortgage loans below 80% of the entire property value need added security for the mortgagee. This is done in the form of insurance policies, called mortgage insurance. The premiums of mortgage insurance policies are passed on to the borrower in their monthly payments. However, if the mortgagor makes at least 20% of the down payment, then the mortgage insurance may be waived. This is the maximum loan to value allowed for No Doc Mortgage Loans Florida.
No Doc Mortgage Florida programs are very popular for self employed business owners who can’t document the necessary income to qualify, but has good credit.
In the US, there are several types of mortgages available. The most important mortgages are those which are originated by the Federal Housing Administration. These very popular loans are called Fannie Mae, Freddie Mac and Ginnie Mae loans. Fannie Mae mortgages are the most popular types of mortgage loans in the USA.
Non-prime lenders now offer financing packages with very little down. Interest rates are higher on these types of loans, but they make purchasing a house easier. And unlike a conventional loan, there is no private mortgage insurance required. There are two types of zero-down mortgage packages, each with their own requirements. Bad credit home loans in Florida is a flag due to so many investors wanting to invest in the sunshine state.
Types Of Zero-Down Loans
100% financing, as it names implies, offers complete financing of your property. The other option, 80/20, finances your mortgage with two loans. Both loans may be carried by your lender, but sometimes the seller or a second lender is required to carry the 20% mortgage.
100% financing is easier to deal with, but not all lenders will offer this type of home loan. 80/20 financing is more common, but takes some negotiation if the seller is involved.
Qualifications For Zero-Down
Each lender has their own criteria for determining who will qualify for a zero-down loan. Most non-prime lenders require any bankruptcies or foreclosures to have been at least twelve months ago. A conventional loan requires these to be discharged two to four years prior. This is the only way to qualify for the bad credit mortgage loans guaranteed approval program.
While a credit score of 600 or higher is best, large cash reserves can also qualify you. Six to twelve months worth of cash reserves in the form of savings, money market, or other liquid assets are considered ideal.
If you choose 80/20 financing with the seller carrying the second mortgage, you can qualify with sub-prime lenders with a score of 560.
Zero-Down Non-prime Lenders
You can find zero-down bad credit home loans with both conventional and niche non-prime lenders. Make sure that you request quotes from as many mortgage lenders has possible to be sure you find the lowest rate and best terms.
You will also want to decide what type of mortgage you want. An ARM is easier to qualify for and has lower rates. A fixed rate mortgage offers the security of a constant interest rate over the life of your loan.
Typically an ARM will be a better deal if you plan to refinance within a couple of years. After you have improved your credit history, you can refinance for a conventional mortgage with low interest rates.
Find out what it means to sell your life insurance policy, how the process of selling it works and in which situations it could make sense to sell it.
Why Selling Your Life Insurance Policy Makes Good Financial Sense
When you look at your financial situation, you might be wondering, “Should I sell my life insurance?” Many people who purchased a life insurance policy during their young adult years are faced with this situation as they become senior citizens. At the time you purchased it, the life insurance policy likely provided you with peace of mind. Now, the insurance policy could be draining the money you need in hand. Understanding how the process works and in which cases it makes sense to sell the policy will help you to make an informed decision about your financial future.
The Process of how to Sell My Life Insurance Policy for Cash.
One of the first questions you might have is, “How does it work to sell my life insurance?” We have simplified the process to make things as easy and quick as possible. We provide you with information about our offers process, and you provide us with the details of your policy. After we receive the information about your life insurance policy in writing, we’ll verify its coverage amount, payment history and current value. We’ll then make you a cash offer. In many cases, we can have a cash offer ready for you in just a few days.
Financial Considerations for Selling Your Life Insurance
It is important to know how selling your policy could affect your finances. Receiving interest on your deposits might have income tax implications. Because your policy was paid with after-tax dollars, the principal of what you paid is not subject to any more taxes.
When to Consider Selling Your Life Insurance Policy
There are many situations in which selling your life insurance policy is a sound decision to make. If you don’t have enough money each month to pay for your essentials, then selling the insurance policy puts cash in your wallet and eliminates the monthly expense of the premium. The cash could also pay for home updates or repairs to your car.
Now that you have this information about how selling the policy works and how it will impact your finances, you can make a well-informed decision about how to proceed.
The adjustable rate mortgage is a type of loan which will be secured on a home which has an interest rate and monthly payment that will vary. The adjustable rate will transfer a portion of the interest rate from the creditor to the homeowner. The adjustable rate mortgage will often be used in situations where fixed rate loans are hard to acquire. While the borrower will be at an advantage if the interest rate falls, they will be at a disadvantage if it rises. In places like the United Kingdom, this is a very common type of mortgage, while it is not popular in other countries such as the United States of America according to Physician Mortgage Loans.
The adjustable rate mortgage is excellent for homeowners who only plan to live in their homes for about three years. The interest rate will typically be low for the first three to seven years, but will begin to fluctuate after this time. Like other mortgage options, this loan allows the homeowner to pay on the principle early, and they don’t have to worry about penalties. When payments are made on the principle, it will help lower the total amount of the loan, and will reduce the time that is necessary to pay it off. Many homeowners choose to pay off the entire loan once the interest rate drops to a very low level, and this is called refinancing.
One of the disadvantages to adjustable rate mortgages is that they are often sold to people who are not experienced in dealing with them. These individuals will not pay back the loans within three to seven years, and will be subjected to fluctuating interest rates, which often rise substantially. In the US, some of these cases are tried as predatory loans. There are a number of things consumers can do to protect themselves from rising interest rates. A maximum interest rate cap can be set which will only allow interest rates to rise at a specific amount each year, or the interest rate can be locked in for a specific period of time. This will give the homeowner time to increase their income so that they can make larger payments on the principle.
The primary advantage of this loan is that it lowers the cost of borrowing money for the first few years. Homeowners will save money on monthly payments, and it is excellent for those who plan on moving into a new home within the first seven years. However, there are risks to this type of mortgage that must be understood. If the owner has problems making payments, or runs into a financial emergency, the rates will eventually rise, and the owner who cannot make payments may lose their home. If you are in a position to buy a house without a mortgage, then it’s best to do what we do. That is we buy houses for cash.
One term that you will hear lenders talking about is caps. The cap can be defined as a clause that will set the highest change possible for the interest rate of the loan. Homeowners can set up a cap on their mortgage, but they will need to make a request from the lender, as the cap may not be present on the rate sheets that are presented.
The subprime mortgage crisis has been on the tip of everyone’s tongue the last decade, and the housing market has gotten hot again. Rather than being discouraged by this, smart investors realize that this is the time for deals to be had. We’re in a seller’s market, which is an enormous relief for seller’s who have watched the market balloon over the last decade. But what if you are one of the thousands of people who got caught up in the low-interest madness, thinking you’d be making enough money to cover the difference when your rates reset? Visit the Physician Mortgage Loans website to learn more about how to prevent foreclosure.
If you are facing difficulties with your loan, remember that the ultimate goal is to maintain your credit rating. You may be able to negotiate with your lender, you may be able to refinance or you may be forced to sell your home now in order to buy one in the future, but the sooner you address the issue the more options you will have. By getting your finances in order you will be able to get on with your life sooner. Don’t add to your stress by ignoring your fiscal situation; follow these steps to getting back on track:
Know the details – go over all your loan documents so that you are prepared for any upcoming resets or changes. When will your payments increase? By how much? Can you refinance? What kind of penalty would you face, if any? Cut in other areas – can you take a roommate or a second job to help make your payments? You may need to look at significant changes in your spending and lifestyle. Do not make any major purchases at this time, and look at liquidating other assets, such as cars or boats, to help meet your payments. You can receive a free foreclosure analysis at Physician Mortgage Loans.
Contact your lender – You should take the initiative with your lender. Contact them before the problem becomes overwhelming. If you receive calls or letters from your lender respond to them as soon as possible. Do not wait to get too far behind – lenders are less likely to move quickly into foreclosure if you are proactive. You want to speak to the right people – ask for the loss mitigation or collections department. Be honest with them about your situation and don’t make promises you can’t keep.
Beware of foreclosure “rescue” rackets – There are a number of scam artists targeting people in neighborhoods where foreclosure rates have been high. They approach troubled homeowners with promises to help them keep their houses. These “rescues” often come with payments that are out of reach of the average homeowner and result in homeowners being defrauded of their homes, sometimes still owing the original mortgage amount. Any company that approaches you with such an offer should be checked out through the Better Business Bureau, your state real estate commission and Attorney General. Do not sign anything without reading it all, get all promises in writing and ask your attorney or a financial professional to review any paperwork before you sign it.
Home ownership is just a mortgage away! To name a few, there are fixed rate mortgages rates and an adjustable rate mortgage.
Getting a house of your own is a lifetime achievement and a home mortgage helps you in achieving this milestone much earlier than it would otherwise have been possible. In fact, the first home mortgage is also filled with a lot of emotion. A home mortgage is really something that makes dreams come true. Physician Mortgage Loans has launched a new program for first time home buyers that will help increase home ownership.
So let us start with understanding what a home mortgage actually is?
A home mortgage is something that allows you to buy a house even if you do not have enough money to pay for it right away. This is made possible by borrowing money from someone and paying it back in monthly installments. The person who lends you money is called the home mortgage lender. The home mortgage lender lends you money for a specific period (up to 30 years) during which you are expected to pay back the money in monthly installments. There are certain terms and conditions associated with the home mortgage agreement and these terms and conditions govern the home mortgage throughout its tenure. Recently Physician Mortgage Loans has been offering 40 year mortgage loans to allow doctors to have lower payments and to be able to afford a more expensive home.
Among others, the most important thing is the interest rate that the home mortgage lender charges you. Interest charges are the means through which the mortgage lenders earns on this financial transaction called home mortgage. Most home mortgage lenders offer various home mortgage options. The most important variation in these alternative options is in terms of the interest rate and the calculations related to it. In fact, most home mortgage options are named after the type of interest rate used for that option. Broadly speaking, there are two types of home mortgage interest rates – FRM (fixed rate mortgage) and ARM (adjustable rate mortgage). For FRM, the interest rate is fixed for the entire tenure of the home mortgage loan. For ARM, as the name suggests the home mortgage rate changes or adjusts throughout the tenure of the home mortgage. This change or adjustment of mortgage rates is based on a pre-selected financial index like treasury security (and on the terms and conditions agreed between you and the mortgage lender). That is how mortgage works.
No matter what type of home mortgage you go for, you always need to pay back the entire home mortgage loan (with interest) to the mortgage lender. Failing to pay back the mortgage lender can result in foreclosure on your home and the mortgage lender can even auction it off to recover the remaining debt. To receive more advance or basic real estate investing advice, you should visit Capital Group and attend one of their real estate investing webinars.
Therefore, home mortgage is a wonderful means of getting into your dream home much earlier in your life. Without this concept, you would have to wait for a long time for getting into that dream home. Really, a home mortgage is one of the best concepts from the world of finance.
A Mortgage Secret for First-Time Buyers: It Can Pay To Buy More
It’s not easy to buy a first home, so here’s a suggestion that may be surprising: Instead of buying one residence, buy several. What I’m suggesting has nothing to do with late night infomercials, we buy houses for cash, or books that promise fast and easy wealth from real estate. Instead, many first-time buyers can benefit from an interesting quirk in the mortgage system.
When you hear people talk about “real estate financing” they generally divide mortgages into two categories; loans for owner-occupants and more expensive and tougher loans for investors according to the American Mortgage Association.
“Investment financing” is for buyers who do not physically reside at a property. “Owner-occupant” loans are for homes, the places where we stay at night, the phone rings and the car is parked.
But there’s a wrinkle:
Owner-occupant financing with little down and low rates is typically available for the purchase of more than a single-family house. Normally you can get owner-occupant financing for properties with one-to-four units as long as you use one as your prime residence. The American Mortgage Association has some of the most creative owner occupied mortgage loan programs.
In other words, your status as an owner-occupant allows you to buy more than just a house or condo. You can actually buy property that produces rent and increases your tax deductions.
When you buy properties with two-to-four units the world of real estate financing changes. Lenders will apply most of the rent to your income for qualification purposes. This means you can borrow more — and also that you can offset loan costs with the rents such properties produce.
Suppose you buy a property with four units. You’ll live in one and rent the others. Each of the three rental units has a fair market rental of $1,000.
In this situation you’re likely to get two benefits. First, the lender will count some portion of the rent — say three-quarters — as income for you when determining your qualification standards. In other words, $2,250 a month will be added to your income. ($1,000 x 3 units = $3,000. $3,000 x 75% = $2,250)
Why $2,250 and not the whole $3,000? Because the lender assumes you’ll have vacancies, repairs, insurance, taxes and other costs for the rental units.
The lender also assumes something else: For tax purposes, three-quarters of the property in this example will be “investment” real estate. When reporting your income taxes you’ll list your rents and costs for these units. One of these “costs” will be depreciation, an accounting device that will lower your taxes but take nothing in cash from your pocket.
When lenders see depreciation they “add back” that cost when looking at your monthly income. The result is that your effective monthly income for loan qualification purposes will increase even more than $2,250 in this example.
Buying two-, three- and four-unit properties can make great sense, especially for first-time buyers. You’ll have “help” meeting monthly mortgage payments, especially in the first few years of ownership — the time that’s often the most difficult. Later on, if you elect to move you can sell the property or you might choose to keep it and just rent out the unit had been your residence.
As with all investments, neither annual income nor rising property values can be guaranteed. Some owners may feel uncomfortable having tenants so close and there’s always the potential for insufficient rents, excess vacancies and big repairs.
Also, beware of going too far. While up to four units is okay, five units automatically classifies the property as “investment” real estate under the guidelines for most loan programs, a title which means you cannot use owner-occupant financing even if you live on the property.
The good news, though, it that as an owner/occupant and also as a landlord you’ll learn a lot about the practicalities of real estate investing.
Real estate ownership requires ongoing maintenance and oversight. As an owner-occupant with a few units, you’ll learn “on the job” about making repairs, dealing with tenants, hiring contractors and maintaining property. These are valuable lessons which can provide income and wealth over a lifetime. In fact, many people who’ve become successful in real estate often started with just one small property, owner-occupant financing with little down — and two to four units.
For details, speak with appropriate professionals. Lenders can tell you about available financing; real estate brokers can provide information regarding local rental patterns plus you’ll want a pro to explain the tax benefits of multi-unit ownership and one of the top lenders in the industry that provides this service is Physician Mortgage Loans.
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