Popular Mortgage Products Explained Including Fixed and Variable Mortgages & Their Comparative Cost

With there being such a spectrum of products being available in the mortgage market I thought I would explain some of the most popular ones available.

Variable Rate Mortgages

Standard Variable Rate

Considered to be one of the most popular types of mortgage available, the interest charged on the loan varies throughout the term of the mortgage. The rate charged on the mortgage varies due to many influencing factors such as: competitor’s rate, Bank of England (BOE) base rate and general market forces.

The Standard Variable mortgage rate fluctuates with influencing factors; therefore these mortgages are not suitable for those who like to know what their fixed payments will be over a long period of time. Those borrowers in particular would opt for a fixed or capped mortgage product.

Tracker Mortgages

Put simply a tracker mortgage is a Standard Variable Rate mortgage that “tracks” an index. This is usually the form of the Bank of England (BOE) base rate or the London Interbank Offer Rate (LIBOR).

These mortgages are perfect for those who can afford to take a risk on monthly outgoings as while they may pay a higher rate when the base rate is increased, during times of low base rates they will benefit from savings made on the lower interest rate.

Fixed Rate Mortgages

A Fixed Rate mortgage  mortgages] is a rate agreed between the customer and lending institution  for a period of time “Fixed Rate Period” The fixed rate is perfect for those who like to know exactly how much money is coming out of their account each month for a known period of time, thus allowing them to keep a steady grip on their finances.

Most fixed rate mortgages require an arrangement fee so this must be taken into consideration of the true cost of the mortgage.

Prior committing to a fixed rate mortgage the borrower should consider future trends in interest rates, their household income and early repayment charges.

Capped / Collared Mortgages

By having a capped rate mortgage the interest rate charged is guaranteed not to rise above a contracted percentage during the fixed term period. The collared aspect applies the opposite; when rates drop the interest charged will not fall beneath a contracted percentage.

Variable Rate Mortgage Cost .Vs. Fixed Rate Mortgage Cost

There is no true way to say which of the two is the cheapest or most expensive as both carry their individual fees.  It is truly down to the borrowers attitude to risk which will determine the true cost personally to them as a debt which they have carried over a long period of time.

Those who are risk adverse are best suited to the variable rate mortgage products as they are willing to take the highs with the lows as both can be very respectively beneficial or detrimental. Those who are not risk adverse and are more regimental with their outgoings a fixed product with the flexibility of overpayment’s would suit them very well.

Credit One Debt Solutions for Christian Businesses – The Best Option for Getting Out Of Debt

Many Christians around the world have fallen in debt today. While governments spend money they don’t have, the world economy is on the verge of collapse. Interest rates have started to climb, prices are on the rise and this leaves even more people with huge debt. Credit Cards are maxed out, loans and mortgages are beyond what people can afford and are forcing many Christians to take on a second job or look for other means to earn income. There are even some Christians who are working three different jobs just to make ends meet. This is causing much stress in the families and in the homes. They are spending all their time just to keep things afloat and have no time for their families let alone any spare time for themselves.

Things have gotten out of control and the Bible states “neither a borrower or lender be.” Now, it is even more complicated for Christian businesses because the cost to run a business keeps going up and the profit margins going down. This is causing most businesses to get further in debt just to pay their operating expenses. Many are seeking help from Credit one debt solutions for Christian Businesses. This can be a business which focuses on debt consolidation for businesses.

Debt Consolidation is One Solution

If you are one of the Christians that find themselves up to their heads in debt, or if you are looking for a real way to help thousands of people, than Credit One Debt Solutions for Christians can help you. The Bible commands us to live a debt-free lifestyle and many Christians find themselves unable to do so. This program offers expert advice regarding financial matters and shows you how to cut costs and shows you have to save money while paying off your existing debts.

    • Credit One Debt Solutions for Christian Businesses will show you how to take all of your debt on credit and consolidate it into one monthly payment. The consolidation company will than makes all of your debt payments for you. This takes all the pressure of paying all those bills.
    • They negotiate for lower monthly payments, lower interest rates which allows you to pay off your debt much quicker.
    • They have a debt repayment plan which enables you to learn how to pay off all of your debt as they walk you through each step of their plan.
  • Credit One Debt Solutions for Christian Businesses also offers you free debt counseling which not only helps you keep on track with paying off all of your debt, they also enable you to stay out of debt while staying true to your principles and values. Their expert advice will teach you sound Christian principles of how to stay debt free even in hard times.

Becoming Debt Free

The ultimate lifestyle is to have no debt and this includes your home. Credit One Debt Solutions for Christian Businesses main goal is to do just that. They bring Christians back to the basics that if you don’t have the money to buy something than don’t. They teach you to save for emergencies and if you don’t really need it than don’t buy it. In our culture today we are enticed in many ways to buy things that we don’t need or will ever use. Their goal is to get you out of debt as quick as possible and then to remain debt free. They also help you plan a budget in which you can live on and help you get rid of some nasty habits about spending.

Achieving Debt free Status

The idea behind Credit One Debt Solutions for Christian Businesses is not to give you a hand out that will bail you out of debt. Instead, it is a solution, which encourages prudence in matters touching on your finances. Their aim is to help you get out of your immediate debt trap, and help you remain debt free. Therefore, their program emphasizes on good spending habits. They encourage you to always come up with a budget as an individual, family, or business and help you learn to stick to it. They also encourage that you find alternate sources of income such as Credit One Debt Solutions for Christian Businesses where you can work from home to market their programs. This will allow you to earn more money, without sacrificing any of your family time. As Christians we should have all of our priorities in order as well as our finances. Credit One Debt Solution for Christian Businesses is a well-organized company that has their heart in the right place to help others who can’t help themselves.

You must learn more about Credit One Debt Solutions for Christian Businesses along with some marketing secrets.Thomas Freers is an Online Marketing Coach for what is arguably the World’s Largest Internet Marketing School available today. He specializes in Article Marketing, Social Media networking and various other marketing strategies and works with small and large companies to help them customize their marketing campaigns.

Conduct an Auto Loan Comparison Before Taking Out Car Finance

If you are looking for car finance then it is important that you take the time to find a quality lender who is able to offer you the best rate. One of the quickest and easiest ways to shop around for your finance is by using auto loan comparison websites. These sites allow you to get information about the different rates offered by a large number of lenders so that you can begin finding companies that boast the lowest interest rates around.

There are many different websites that can give you an auto loan comparison. These can be information websites on car finance, auto loan brokers, review sites or those that offer financial services. It is important that you realize, however, before taking the information on an auto loan comparison site as gospel, that all of these sites will often have their own agendas and so you should use the information they offer as a guide only. You should use these websites to give you an idea of the interest rates offered by the different lenders in order to conduct an independent auto loan comparison.

Conducting your own comparison is an important step when it comes to securing your car finance. The interest rates on car loans will vary somewhat between lenders and so it is crucial that you spend some time looking at the rates offered by a large number of bank and non-bank lenders. In today’s market it is possible to find great deals on car loans but you will only do this if you spend the time doing an auto loan comparison.

One of the first places you can begin when carrying out an auto loan comparison is with your own bank or financial institution. This will give you an idea of the rates that the larger lenders are offering so that you can compare these with what the non-bank lenders that you will be able to access online.

Once you have established how much the major players in the market are offering on car finance you can begin searching online for a comparison of financing options for your vehicle. Many of the lenders that you will have access to on the internet will generally be non-bank lenders and so you will be able to compare the rates that they offer in order to get an idea of the difference in rates between the different types of loan providers.

While, naturally, price is an important consideration when getting car finance, but it should not be the only factor that determines whether or not you select a particular lender. When conducting an auto loan comparison you should also aim to compare the loan products offered, the service that these lenders provide as well as the additional fees and charges that they may apply to your loan, such as loan establishment fees and other charges that may be applied.

Your car loan will commit you financially for several years and so, before you sign on the dotted line, you should always conduct a good comparison to ensure that you are getting the best value for your money.

Making Sense of the Economic Recovery Act and How it Applies to Home Mortgage Rescues

Newly passed legislation about home mortgage modification seems to be the talk around the water cooler lately. But figuring out just how this valuable legislation can affect you as a homeowner and the interest and terms of your home mortgage is difficult. Basically, the Obama plan is centered on two groups of homeowners: the first is those who are facing foreclosure due to missing payments and default, the second is those homeowners who cannot refinance to a better rate due to falling prices in the housing market.

For the first mentioned group, those who are facing foreclosure, the government offers incentives to lenders in order to secure mortgage modification on their existing mortgage. In doing so, the homeowner can reduce their monthly payment requirement enabling them to stay current on their mortgage and avoid foreclosure. For homeowners who are current on their mortgage but cannot refinance because the value of their home has gone down drastically in their area, the Obama mortgage rescue plan can allow them to refinance their mortgages to better terms that include smaller monthly payments. These mortgages are known as underwater mortgages.

Modifying Your Mortgage Under The Obama Rescue Plan

For mortgage modification, the homeowner must have taken out a mortgage on the home prior to January 1, 2009 and the mortgage cannot be a second mortgage (must be their primary mortgage). The principle of the mortgage must be less than $729,500 and the homeowner must actually live in the home that qualifies for mortgage modification under the Obama mortgage rescue plan.

Additionally, the homeowner must document their financial situation fully via income tax return statements and pay documentation in the form of paystubs or pay statements. The homeowner must also prepare a financial hardship statement that details how and why they fell into financial difficulty that requires that their mortgage be modified. If the borrower has a total household debt that is greater than fifty-five percent of their income, the borrower must agree to go for credit counseling. The homeowner does not have to be late on their mortgage payment to qualify for mortgage modification.

Once these qualifications are met, the mortgage lender can determine the amount of the new monthly payment in order to make sure that it is no more than 31% of your pre-tax (gross) monthly income and the interest rate can be as little as 2%. This provides significant savings that can keep the family in the home and allow the home to be its most affordable for them in the future.

Refinancing Your Mortgage Under The Obama Rescue Plan

For mortgage refinancing, the homeowner must live in the home and it must be their primary residence. The mortgage must be owned by either Freddie Mac or Fannie Mae (check with your lender, many mortgages are owned by these two huge entities; you may be unaware of it). The borrower must show that they have enough income coming into to sufficiently handle the mortgage payment, and borrowers cannot take cash out of the mortgage in order to pay on other debts. Also, the mortgage cannot be written for more than 105% of the current fair market value of the home. The mortgage can be refinanced under this option to a fixed 15 or fixed 30 year rate.

Overview of Illegal Collection Practices Used by Debt Collection Agencies and How to Fight Back

The Fair Debt Collection Practices Act states that federal law prohibits a collection agency from engaging in various deceptive or illegal debt collection practices such as threatening the debtor, etc. In this article, we go over some debt collection practices that are banned by the FDCPA and any collection agency that employs such tactics is looking for trouble!

i) Communication with Third Parties

In most cases, a debt collection agency cannot contact third parties about debts that you owe. There are a few exceptions to this rule such as:

Your attorney – The debt collector can contact your attorney if he knows that you are represented by one. This means the debt collector must always contact that debt attorney and should not phone you, unless you give them permission to contact you or if your attorney does NOT respond to the debt collector’s messages.

Credit reporting agency – Most creditors will file a note to the 3 major Credit Bureaus including Experian, Equifax and TransUnion about your debt and they are legally allowed to do this.

Original creditor – Since most debts are sold to collection agencies by creditors, the agencies are allowed to maintain communication with the original creditors in order to facilitate the collection of the debts.

Debt collectors are permitted to contact your spouse, parents or your co-debtors unless you ask them in writing to stop doing so. If you send a written letter to a debt collector to stop contacting your parents or co-debtors regarding outstanding debts and if they still do, then they would be violating the rules set out by the Fair Debt Collection Practices Act (FDCPA).

Another limitation is that debt collectors are permitted to contact third parties for the purpose of finding information about your whereabouts. In any such communication or phone calls, the debt collectors:

– Must state their name and if they are verifying information about your location or whereabouts.

– Are not required to identify their employer unless you ask them.

– Are not required to state that you owe a debt.

– Cannot contact a third party more than once unless if told to by that third party, of if they believe the third party’s earlier response was false, incomplete or
wrong and that the third party has the complete information.

– Cannot communicate with post cards.

– Cannot use any words or letterhead or symbols on the outside of an envelope that indicates they are trying to collect a debt (including any business logos or overheads). This is if it is clear that such a logo would give away the purpose of the letter.

– Cannot call any third parties for location information if they know a debt attorney represents you.

ii) Communication with You

When a debt collector calls you for the first time, he must state the reason of the call, which usually is an attempt to collect a debt and that any information given by you, will be used solely for that purpose. In further communication, the debt collector must tell you his/her name and the collection agency they work for. Here are some rules regarding when a debt collector can call you and when it is not a good time:

– The debt collector cannot contact you at an unusual time or place e.g. calls before 8am or after 9pm.

– The debt collector cannot contact you directly if he knows that you have an attorney representing you.

– The debt collector cannot call you at work because he knows your employer could prohibit such communications during work. If you do get such a call from a debt collector while at work, tell them your employer prohibits such communication at work and that they should not call you at this time (working hours).

iii) Abuse or Harassment

A debt collection agency cannot engage in conduct that is meant to harass abuse or oppress you. More specifically, the collection agency cannot:

– Publish your name as someone who owes debts or doesn’t pay bills in the public (some child support collection agencies may be exempt from this rule).
– List your debt as for sale to the public or investors’ community
– Make telephone calls to you without identifying themselves as debt collectors
– Call you repeatedly
– Use or threaten to use violence against you
– Harm you or threaten to harm you in any way
– Harm someone else or threaten to harm someone else or his/her property
– Use profanity when communicating with you

If you get such a collector that uses profane language, just hang up on the phone and not bother picking up again if they call back.

iv) Lies or Misleading Representations

Collection agencies cannot like to you or make false misleading representations in an effort to get you to pay debts. Some of these include:

– They cannot claim to be a law enforcement agency or suggest that they are connected with the federal, state or local governments trying to collect debt.
– They cannot falsely represent the amount you owe or the percent of commissions they will receive after collecting your debt.
– They cannot claim to be a debt collection attorney or any message they give you is from an attorney.
– They cannot claim that you will be imprisoned or your property will be seized unless the debt collector is really going to sue you possibly forcing you to go to jail or your property being seized.

Things to Consider When Getting Pre Approved Bad Credit Auto Loans

When it comes to getting car finance with a poor credit history then it can certainly help if you look around for pre approved bad credit auto loans. Not only will it make the process of buying your car a lot quicker and easier, but it can also give you some bargaining power if you have your finance approved before you begin shopping for your new car.

There are many lenders in the industry who offer pre approved bad credit auto loans, and what’s more a large number of these companies can be found on the internet. This means that you can easily shop around for pre approved bad credit auto loans online, in your own time, so that you can be sure you are accessing the right finance package for you at the right price.

If you are looking at getting pre approved bad credit auto loans it is important that you get yourself into the best financial position that you can before you begin your search. Look into your credit rating thoroughly to determine the cause of your failing credit rating and, if possible, try to pay of any outstanding debts before applying for pre approved bad credit auto loans. It may mean that you may need to delay purchasing your car for a few months, but spending some time improving your credit rating will enable you to get pre approved bad credit auto loans a lot easier and at a much lower rate.

Most lenders who deal with poor credit finance know that they are dealing with customers who have a less than desirable credit score. For this reason, your credit report will not be the determining factor when it comes to getting pre approved bad credit auto loans. Approval of this type of finance generally comes down to your current financial position and whether or not you can afford to repay the amount you wish to borrow. Spending the time working out your budget will allow you to determine exactly how much you can afford to repay and enable you to work out your borrowing capacity. Allowing room to move within your budget and avoiding borrowing up to your maximum will help make getting pre approved auto loans a lot easier, regardless of your history.

The majority of lenders who offer pre approved bad credit auto loans are your private lenders. The big banks rarely deal with customers who have a poor credit rating, so you will have a better chance of getting your finance if you go with a smaller non-bank lender. Since there are so many private lenders who specialize in bad credit finance, most are doing all they can to attract customers, including offering finance at very reasonable rates. It is extremely important, when looking for this type of finance, that you spend the time shopping around for your loan and comparing as many lenders as you can so that you can be sure you are getting your finance at the best possible price. While poor credit finance generally does cost more, you certainly want to avoid paying too much for your car loan.