Sunday, September 30, 2012

Home Loans With Bad Credit: How To Improve Your Approval Chances

Traditionally, home hunters face an uphill task when they want to find finance to buy a new home. But the truth is that getting a home loan with bad credit is easier that many would think. What must be accepted is that compromises need to be accepted, like higher interest rates.

Lenders are usually thought of as conservative in their lending policies. This is certainly true with traditional lenders, like banks, but the rise of alternative lenders has seen the chances of securing mortgage approval increase dramatically. And with terms that are more flexible, and interest rates that are more competitive (though still not very low), these finance packages are more affordable too.

Getting approval is possible, even when an applicant has a very low credit rating. And, for any applicant, the chances of getting that home loan are improved when certain areas of the application are prepared properly.

Key Areas to Consider

There are three areas that every applicant should pay careful attention to before they submit their application for a home loan with bad credit. These relate to calculating an accurate budget (and sticking to it), the down payment, and finding the right lender with the right loan terms.

Calculating the budget is the first step, and involves making a careful assessment of existing debts and outgoings, and comparing them with income. Most lenders will stress the need to have enough excess income to cover mortgage payments for the lifetime of the loan. In fact, when it comes to securing mortgage approval, this is the core issue.

Budgeting means that the limit to what home loan is attainable is recognized so that a strategy can be devising to eventually increase that limit. For example, if the amount of existing debt is high, then lowering it by clearing some individual debts, or using a consolidation loan, then more income can be made available to cover mortgage repayments.

Increase the Down Payment

The down payment is often overlooked as an element in the overall mortgage deal, but increasing the size of the payment can have a positive impact. This is especially true when seeking a home loan with bad credit, where the monthly repayments need to be kept as affordable as possible.

Basically, the size of the required mortgage is lowered if the down payment is bigger. For example, a down payment of 5% on a home worth 0,000, means a mortgage of 0,000 is needed to complete the purchase. But a 10% payment means 0,000 is required, which could translate to a fall of perhaps 0 in repayments each month. Securing mortgage approval, therefore, become much easier.

Of course, another aspect is that providing a larger down payment tells lenders of the commitment an applicant has to getting a home loan. Saving a large sum of money relatively quickly requires real financial discipline, which is a positive attribute.

Find the Right Lender

Your choice of lender is just as important a part of any deal as anything else. They set the policy that affects the interest rate structure, as well as the range of penalties and fees that can be charged. So, getting the right one can make the task of finding an affordable home loan with bad credit easier to accomplish.

Online lenders are generally the best in the market, often charging more competitive rates and offering terms that are more suited to bad credit borrowers. For those with poor credit histories, the chances of securing mortgage approval are increased, as long as the criteria and conditions are met.

Still, be sure to examine any home loan offer carefully for hidden charges before signing up to anything. Also, check the reputation of the online lender with the Better Business Bureau website.

Friday, September 28, 2012

The Fractional Reserve Banking Fraud

Fractional reserve banking and the fraud that came with it is at the core of the present-day financial system. In order to grasp an understanding of the ongoing dilemma, and why Federal Reserve Banks are at fault, it is essential to understand the concept of Fractional Reserve Banking and why it is more than just counterfeiting.

Contrary to what is believed, the American dollars in your bank account are not the same dollars in the form of cash (Federal Reserve Notes) in your wallet. The dollars in the banks are make believe paper dollars, or numbers on a computer created by the bank an obligation or promissory note to pay you a certain dollars in Federal Reserve Notes. Simply stated, the bank backs the dollars in your bank account while the Federal Reserve backs the Federal Reserve Notes.

Throughout time, gold was the only existing currency. Purchasing your daily loaf of bread with pure gold did not seem practical and for that reason, goldsmiths served as early bankers. Goldsmiths would issue certificates that were backed by gold and this allowed people to purchase things with paper money. This paper money was represented by pure physical gold bullion and was stored in the goldsmith's vaults.

Producing certificates to look after gold meant that a significant amount of cash (gold) was just sitting around in storage. So the goldsmiths decided to start a fraud. When this happened, they became the bankers we know today.

Creating this fraud was really simple. Given that people did not know how much gold was actually stored, it was easy for goldsmiths to issue out more certificates than the gold being stored. By doing this, they attempted to earn more interest than would have been possible if they would have limited themselves to loan based on the gold stored. These goldsmiths relied on the assumption that not all of the certificates would be cashed in at the same time and therefore nobody would find out.

This is a critical explanation of the fraud that is fractional reserve banking. In the time of goldsmiths, it was easy to distinguish between right and wrong. The promissory notes were backed by the gold in the vaults. The moment the goldsmiths decided to issue notes that were backed by nothing (aside from the supposition that they would have enough gold inventory to pay, assuming not everyone demanded their physical gold at the same time)thus the process of fraud began.

How is it possible that bankers were allowed to get away with something like this? How could no one say anything about the false creation of gold?

Enter the government. Corruption can stem from power, and absolute power corrupts absolutely. So indeed, the government knew the trick of the goldsmiths' scam. However, the world's ruling classes knew it was not convenient to stop it. Instead, they saw it advantageous to perpetuate the scam. Why? Because by taxing and regulating the issue of money, they could keep a system in place where both could profit. This inevitably led to what we know as Fractional Reserve Banking.

If you move forward in time 500 yearsthe US Dollar is the world's reserve currency and serving like the world's goldsmith. Privately owned by several mysterious group banks, the Federal Reserve System illustrates the jaded relationship banks and governments have developed in the last 500 years. For some reason, world economies fall in the same trap of the same scam.

The interest rate banks operate under and lend are controlled by the Federal Reserve. In addition, the Federal Reserve controls the fractional reserve ratios banks are required to maintain (as a percentage of their reserves held in Federal Reserve Notes). What does this mean? The money supply and the new money' being created are controlled by privately owned company comprised of banks allowed to counterfeit' money. There is also the interest charge on those dollars created out of thin air!

For those reasons, I have a nickname for Fractional Reserve Banking: I refer to them as Fictional Reserve Banking. How long will you allow yourself to be fooled by this fraud? Will you take the steps necessary to protect yourself and stay ahead of the crowd?

Here are some suggestions for further reading: It is essential to understand the Fractional Reserve Banking in order to find or create positive banking solutions for your family and future. Solutions like these are the ones author Peter Macfarlane writes about in his blog on offshore banking. Peter also writes several articles on the topic of Wealth Creation for The Q Wealth Report which is a leading quarterly journal dedicated to financial privacy and individual liberty, as well as offshore asset protection. He is also a well-known authority and speaker at offshore living events.

Sunday, September 23, 2012

Cool Gadgets for Daily Life

We live in an interesting world. Every day, we can meet many different kinds of interesting gadgets. How many gadgets do you still remember? For me, I choose a good way to remember them. When I meet a cool gadget, I will record it in my blog. And now, in my blog there are many cool gadgets for daily life. Now, I introduce them to you, and I believe that you will love them.

Paper Chair
A black paper chair, do you want to sit on the chair? When I was a child, my mom said the cloth shoes are so comfortable, we search our file about the chair, it's designed by the Russia designer Vadim Kibardin. His works named Black Paper 37, from the image the felling is so good.

The chair is completely made from the black paper, a layer of the paper pile on another layer then shaped made the great work. If the thousands chair really used the thousands layer paper, that will be too exaggerated. Mr. Vadim finished the works only used 37 layers paper.

The chair really is so good, it look like so thin to be crashed when a person sit down. But it's owned a great elastic character. We also can prove the chair material is not the common write paper. Otherwise, when a person sat down on the chair once it will be a disposable chair.

Paper Bicycle
A designer spent made the bicycle. It sound like someone is talking about the dream. But the designer Giora Kariv realize it, the inspiration usually we can see someone made a paper boat can take someone in board. Kariv buddy have read the paper, he decide made a bicycle by the corrugated case. From the image shot, we knew he is successful, we also surprise he is only cost , the corrugated case can bear 136kg burden, it enough for a muscle guy ride it. If the day is rainy day, it's also without any question.

But, do you think is there some especially points of the bicycle? Of course not, but the thing is like a miracle. When we first see it, we will think it's made from wooden material. During the manufacture period, all of the components and parts is made from paper. In order to make sure the strength, the corrugated case is like roll shape, and the other point, the product is white. We think the bicycle is used the anti-water function or some different paint make sure it can ride across a pool.

Cool Mobile Phone
Today we can save the thousand mobile phone number, but slowly, we really need so many mobile phone numbers. I mean there are billions people on the world, we usually only need several the most close connector number, e.g. the most old and the young kids. For them, the OwnFone is easily control that will be the most comfortable mobile phone.

The mobile phone size likes your credit card, low cost even hasn't the screen, but it's designed for everyone especially designs.

The front screen only has 12 shortcut buttons. Every press button print the Father, Mother, Grandpa, Grandma, this will save the most time for the old man can't see the screen clearly but they also want to search the number. Those numbers only useful for yourself, useless for the others, if you think the Mum, Daddy is easily release your personal information, you also can print the Susan, David name on the button.

Wednesday, September 12, 2012

Senate Finance Committee Reworks Health Care Reform Bill

SUZANNE PRATT: One-sixth of the U.S. economy is getting a make-over today on Capitol Hill. The Senate Finance Committee has taken up an historic reform of the nation's health care system. And before the legislation was out of the starting gate, it was already being changed. Senator Max Baucus, the author of the bill has agreed to scale back the tax on so-called gold- plated health insurance policies. But as Darren Gersh reports, a key concern remains how much the average American will have to pay to buy coverage.

DARREN GERSH, NIGHTLY BUSINESS REPORT CORRESPONDENT: From the very beginning, the hard work of the Senate Finance Committee came down to balancing the cost of expanding health care coverage with affordability. Striking that balance is the job of committee Chairman Max Baucus.

SEN. MAX BAUCUS, FINANCE COMMITTEE CHAIRMAN: No one should go bankrupt because they get sick. This bill would fix that.

GERSH: Today, Baucus added billion over the next decade to help low-to-moderate income Americans buy health insurance. They'd buy it from the new exchanges the bill would create to organize the insurance market. The move was a clear nod in the direction of Maine's Olympia Snowe, the only Republican still on board with the effort.

SEN. OLYMPIA SNOWE (R) MAINE: There remains major outstanding issues that must be resolved to ensure that everyone, whether they're in an exchange or getting employer-provided coverage is able to afford a plan.

GERSH: The subsidies in the Senate Finance bill would help families earning up to ,000 buy coverage. But health care analyst Rick Weissenstein says some lawmakers think the help isn't enough.

RICK WEISSENSTEIN, HEALTH CARE ANALYST, CONCEPT CAPITAL: I think the members are concerned that, for a family or four making ,000 in most places in the country, you're largely paycheck to paycheck and the idea that you might have however much insurance for a family of four would cost 0, 0, 0 a month, I think is really questionable.

GERSH: For Snowe's fellow Republicans, like Arizona's Jon Kyle, the Baucus bill is unaffordable because it raises taxes, putting at risk those who now have private insurance.

SEN. JON KYL (R) ARIZONA: At least 85 percent, maybe a little over 90 percent of Americans have good care and insurance and don't want Washington to mess with it.

GERSH: In another nod to affordability, Senator Baucus slashed the proposed penalty on families who don't buy health insurance from ,800 to ,900. Many more changes are ahead. The committee hopes to work through this pile of 564 amendments in the next week or two. Darren Gersh,

Monday, September 10, 2012

Advantages of Housing Loans Using SIBOR Rate

Advantages of Housing Loans Using SIBOR Rate

Home loans are some of the most common types of loans people apply for in order to purchase another property or to refinance a home renovation or rehabilitation project. There are many factors to consider before choosing a housing loan such as the amount of loan, which bank or institution to apply and the interest rates available. Choosing the interest rate for your home loan is very important since this factor will determine how much you are going to pay every month to pay off your loan. That is why many home buyers and investors prefer the lowest interest rate as possible in order to obtain lower monthly payment costs. One of the most common interest rates used as benchmark by various banks in Asia is the SIBOR rate or the Singapore Interbank Offered Rate.

Aside from Singapore, many countries in Asia also use SIBOR for their home loans. The Association of Banks in Singapore or the ABS is the main institution that sets the SIBOR rate every day. Since it is one of the most common benchmarks in the industry, it is important that people especially home buyers and borrowers have sufficient knowledge about this type of interest rate. Banks and lending companies use SIBOR rate because of its good qualities. One advantage of SIBOR against other types of variable interest rates is that it is more stable compared to the SOR which is another type of benchmark used by banks and lending institutions in Asia. SOR are only ideal for short term interest rates while SIBOR rate is more ideal for long term home loans. This is because SOR pegged home loans have lower initial interest rates but are very volatile and always fluctuating while SIBOR starts a little higher but do not fluctuate rapidly.

If you don't want to take risks with home loans pegged on variable interest rates, you can consider home loans based on fixed rates. Fixed interest rates are higher than variable rates since banks and lending companies are profit-driven institutions and they operate by securing their profits and reducing possible losses. With higher fixed rates, banks can minimize risk of losing money no matter what the economic condition and performance will be. Aside from being relatively high, fixed rates are also used by banks as promotional rates which are only applied at the initial years of the housing loan. After the initial years, the interest rate will be changed to the main benchmarks such as the SIBOR rate. Using fixed rates are only ideal if you want to have better comparison among home loan options and deals available to you.

Aside from the common benchmarks and fixed rates, some banks and lending institutions offer housing loans pegged on their own derived interest rate. Banks using these kinds of interest rates usually make changes on the rates if the factors affecting the rates also changes such as the supply and demand, real estate performance and other economic factors affecting their self-determined interest rate. Compared to SIBOR rate which is publicly available and can be easily monitored every day, changes to the interest rates determined by banks are only announced by giving notice to its clients.

Thursday, September 6, 2012

Two Myths About Guaranteed Car Finance Arrangements

Two of the biggest myths when it comes to car finance and in particular guaranteed car finance are that you either have to wave goodbye to any kind of choice, and that taking out a guaranteed car finance car loan will harm your credit worthiness.

In this article we are going to look at both of these myths, understand where they have come from and why people believe them to be true, and understand exactly what the reality is.

The past couple of years have certainly been rather unkind to many of us, with finances being stretched to breaking point. This has resulted in many families being forced to make tough choices, often with the result that bills remain unpaid just so that food can be put on the table.

A credit card bill seems somewhat less important that eating at a time like that, but from the point of view of the credit card companies, anyone who doesn't pay their bill on time is a debtor, and this can result in credit histories being marred by entries which list the number of missed or late payments.

A credit history may well contain several such examples of this, and may also include problems such as arrears, defaults and even CCJs. Although the recession is now over, and finances are picking up, many people are finding that the damage caused is likely to be with them for a good many years.

Many entries made on a credit history must remain for six years before they are removed, which could mean that whilst the recession lasted just two years, the consequences could still be being felt in 2016 for those whose credit ratings have been damaged.

It is for this reason that a greater number of people than ever before are turning to guaranteed car finance firms for solutions. Trying to obtain a car loan or car finance with bad credit can be next to impossible, and in the wake of the recession most lending institutions have tightened their belt and increased the minimum level of credit worthiness required before being willing to offer any kind of finance.

Guaranteed car finance does seem to offer a solution, yet with the two most popular myths circulating widely a good many people who would otherwise benefit from such a scheme are choosing not to explore their options.

The first myth is that choosing to accept an arrangement for guaranteed car finance is choosing to give up any choice you may have had in terms of what car you can purchase. The reason this myth abounds is because there are examples where it is true.

In several cases car finance firms will offer customers what appears to be quite a generous offer of a car loan. However, what then becomes apparent is that the car loan can only be used to purchase a car belonging to the car finance firm itself.

Since car finance firms are rather different entities from car salesrooms, their expertise, range and quality is not always likely to be as good as you might want. But in almost every case you don't even get to choose any car from the range, but will instead be offered two or three cars to choose from.

But although this myth is true in some cases, it isn't true across the board. There are plenty of examples where car finance can be offered, and which is guaranteed, yet the customer is still free to choose to spend it on any car from any dealer anywhere in the UK.

So as far as this myth is concerned, it pays to look around and find a guaranteed car finance firm able to offer not only cheap car finance, but choice and freedom as well.

As far as the second myth is concerned, this is entirely untrue. Some people feel that having a guaranteed car finance arrangement set up will somehow damage their credit rating, since other financial institutions may see it as being evidence of a murky past.

This is quite false, and in fact the complete opposite is true. Having a guaranteed car finance arrangement will almost certainly improve your credit rating, as long as you make your payments in full and on time. This is because each month you make a payment the car finance firm will record this as a positive entry in your credit history. The more positive entries, the higher your credit rating.

So be aware of these myths, but be aware of the truth behind them as well, and when it comes to looking for car finance, make sure you choose carefully.

Sunday, September 2, 2012

Real Estate Recipe Postcards - Do They Work?

Are real estate recipe postcards a "delicious dish" for postcard marketing success, or are they a waste of time and money?

Only the individual marketer can answer that question with any finality. The answer will come from experimentation and testing with various postcard marketing tactics, comparing one strategy against another, etc. But I'd be happy to give my take on the subject, based on the time I spent working in the postcard marketing industry.

What's a Real Estate Recipe Postcard?
Let's start with a quick definition, just so we're on the same page. A real estate recipe postcard is a marketing postcard sent from a real estate agent to their audience (usually homeowners and potential home buyers). On one side of the postcard, there's a picture of a tasty dish with the recipe listed out. You know, chili con carne, bananas foster ... that sort of thing.

On the other side of the recipe postcard, the agent will list his or her contact info with some form of "Call me when you need help" message. The basic premise is that the recipient likes the recipe so much -- or finds the postcard so thoughtful -- that they dial up the agent and say, "Will you help me buy / sell a home?"

I know, it's a bit of a stretch. But that's how real estate recipe postcards are supposed to work. The question is, do they work that way? An even better question is, how do the response rates from a real estate recipe postcard stack up against a postcard that makes a powerful offer and employs proven strategies of direct mail marketing?

To my knowledge, there has never been any study on the effectiveness of real estate recipe postcards (when compared to a different form of real estate postcard). Sure, you'll find a handful of testimonials here and there, and perhaps some "Use real estate recipe postcards!" promotional copy on a postcard company's website ... but that's probably it.

So here's my take on the subject, based on my professional experience with both postcard marketing in general and real estate marketing in particular.

Me personally, I wouldn't spend a dime on real estate recipe postcards. And do you want to know why? Because while a real estate recipe postcard might produce one response out of a thousands mailers, there are ways to get much better response rates. You know ... those tried-and-true postcard marketing techniques, like making an offer of some kind.

There are also ways to combine the real estate postcard with an informational website, thereby creating a "super card" that can improve the success of both marketing channels. In short, I believe there are much stronger approaches to real estate postcard marketing than simply slapping on a recipe and waiting for the phone to ring. But that's just me.

* You may republish this article online if you retain the author's byline and active hyperlinks below. Copyright 2007, Brandon Cornett.