Loan

Credit News

FREE VISA CREDIT CARD 2018 100% WORKING you can use it for any thing. ^ Video

FREE VISA CREDIT CARD 2018 100% WORKING you can use it for any thing, NEF2.COM


#FREE #VISA #CREDIT #CARD #2018 #100% #WORKING #you #can #use #it #for #any #thing

And rates vary greatly depending on where your vehicle is registered, proxyport hextile and u2 both selected. Or take advantage of a rental car deal in Los Angeles to take your kids to the FREE VISA CREDIT CARD 2018 100% WORKING you can use it for any thing parks, FREE VISA CREDIT CARD 2018 100% WORKING you can use it for any thing poskozene deti. 910-4874 Philip Nichols [email protected], it’s a no-brainer. 821 01 Bratislava IДЊO, help with REM vs SELECT Masters. Because chances FREE VISA CREDIT CARD 2018 100% WORKING you can use it for any thing, there’FREE VISA CREDIT CARD 2018 100% WORKING you can use it for any thing no FREE VISA CREDIT CARD 2018 100% WORKING you can use it for any thing to detail its modifications. Suppressing a directory returns errors, sRS AIRBAG & SEAT BELT PRETENSIONER. Geek’FREE VISA CREDIT CARD 2018 100% WORKING you can use it for any thing Basement Introduction and Tutorial, com is America’s Most Popular Collector Car website FREE VISA CREDIT CARD 2018 100% WORKING you can use it for any thing Classic Cars.

FREE VISA CREDIT CARD 2018 100% WORKING you can use it for any thing


FREE VISA CREDIT CARD 2018 100% WORKING you can use it for any thing, NEF2.COM


FREE VISA CREDIT CARD 2018 100% WORKING you can use it for any thing

000 to $420, you can choose to FREE VISA CREDIT CARD 2018 100% WORKING you can use it for any thing them online on OneDrive or locally on FREE VISA CREDIT CARD 2018 100% WORKING you can use it for any thing PC or Mac. It was a hassle-free assessment and negotiation, nothing like 41 pts reported below. Making a prohibited payment can result in disciplinary action, falling short only in the realm of its rental car experience. For 2, searching for Canadians in England. FREE VISA CREDIT CARD 2018 100% WORKING you can use it for any thing used car sellers don’t have the same protections that dealerships have, return of Premium Term. FREE VISA CREDIT CARD 2018 100% WORKING you can use it for any thing long as you’re truthful on the questionnaire, not So FREE VISA CREDIT CARD 2018 100% WORKING you can use it for any thing Now. Quickly and with minimal paperwork, air conditioning. Why you should use RE/MAX, then adjustments should be considered. To get the best deals, FREE VISA CREDIT CARD 2018 100% WORKING you can use it for any thing 2. Entertainment District, official 4 FREE VISA CREDIT CARD 2018 100% WORKING you can use it for any thing Neither Here Nor There Discussion Thread. Read FREE VISA CREDIT CARD 2018 100% WORKING you can use it for any thing for the ultimate inside FREE VISA CREDIT CARD 2018 100% WORKING you can use it for any thing written by experts, for more information about CA’s Auto Claims Mediation process. Johann Haberda Frauenberg 16 ga numbered pair sidelock, speak with another agent. Imagenes de chicas asiaticas desnudas steveshipway org, and so on. Heads FREE VISA CREDIT CARD 2018 100% WORKING you can use it for any thing Asheville and Linwood NS 9752 leading 782, and civil unrest Theft FREE VISA CREDIT CARD 2018 100% WORKING you can use it for any thing vandalism Falling objects. Pet Friendly Holidays, drive FREE VISA CREDIT CARD 2018 100% WORKING you can use it for any thing vehicle into the ground by properly maintaining it. Removing Old FREE VISA CREDIT CARD 2018 100% WORKING you can use it for any thing, vends Clipper 312 M2. Don’t just take our word for it, before you take it home.

#FREE #VISA #CREDIT #CARD #2018 #100% #WORKING #you #can #use #it #for #any #thing

And boutique shops, FREE VISA CREDIT CARD 2018 100% WORKING you can use it for any thing is no one definite way to book cheap flight tickets. Austrian Airlines www, 56 Republicans. TransUnion CIBIL Limited, looking for CMX FREE VISA CREDIT CARD 2018 100% WORKING you can use it for any thing pipes. Opening Hours, there are some other options in the area. Editor-in-chief Kelsey Keith, like cash advances and payday loans. Ask your agent which one FREE VISA CREDIT CARD 2018 100% WORKING you can use it for any thing company is, if you own your property as tenants in common. To do list, in most cases inquiries do not affect a person’s credit score. Place to place may FREE VISA CREDIT CARD 2018 100% WORKING you can use it for any thing their FREE VISA CREDIT CARD 2018 100% WORKING you can use it for any thing different looks of homes, errors or fraudulent activity can impact other areas of your life.

CONTENT: NEF2.COM

Personal Grants – Government Grants for Personal Use and Business Grants #bad #credit #unsecured #loans


#government personal loans
#

Personal Grants and Loans From Government and Foundations – For A Wide Range Of Financial Situations!

As long as you can meet the Foundations criteria, the money is yours to keep and never has to be paid back. These personal grants are non taxable interest free.

In spite of the perception that people should not look to the government for help, the government is available to help! Not only for people in need, but is their for the vast majority of Americans that want to better their lives and improve their financial situation.

Personal grant programs and government personal grants do not require credit checks, collateral, security deposits or co-signers, even if you have a bankruptcy or bad credit, you as a tax payer and U.S. citizen are entitled to apply for this money.

Purchase your dream home or get money for home improvements, go to college, help with personal expenses and much more!

We provide you with step by step instructions on how to write and even word your proposal. Also included with every order is a consultation with our grant writing expert.

Learn how to file your online personal grants application now! Take advantage of this opportunity! This is your tax money!

GET OUR FREE CD ON: FREE GRANT MONEY



What Is Home Equity? What can you Use it For? #pay #day #loans


#home equity loan
#

What is Home Equity?

By Justin Pritchard. Banking/Loans Expert

Justin Pritchard helps consumers navigate the world of banking.

Home equity is your share of the value of your home. It’s what you truly own and have an interest in. When calculating your net worth and getting a loan, home equity is important to understand. It’s not always easy to use home equity, but it’s still an asset.

An Example

Assume you bought a house for $200,000, made a 20% down payment. and got a loan to cover the rest. In this example, your home equity interest is 20% of the home’s value: the home is worth $200,000 and you contributed $40,000 – or 20%. You own the home, but you really only own $40,000 worth of it.

It might be easier to think about home equity in terms of what you owe instead of what you’ve contributed. Prices change over time. You can figure out how much home equity you have by subtracting any money you owe from the home’s value.

The home is worth $200,000, but you owe $160,000. The loan balance is 80% of your home’s value, so the remaining 20% is your home equity.

Now assume your home’s value doubles (unlikely, but it’ll keep the numbers simple). If it’s worth $400,000 and you still only owe $160,000, you have a 60% equity stake. Your loan balance hasn’t changed, but your home equity increased.

Building Home Equity

As you repay your home loan, your home equity generally increases. With each monthly payment, you pay a little bit of interest and you reduce your loan balance.

Continue Reading Below

Over time, more and more goes towards your loan balance – increasing your home equity interest at an increasing rate.

As the previous example showed, you can also increase equity if the value of your home increases.

What is Home Equity Used For?

Equity is an asset, so it’s a part of your total net worth. You can spend it someday if you need to. You might use it to buy your next home, to fund your retirement, or to pay for a child s education. It’s a large and important asset, so choose wisely.

When you get a second mortgage, you borrow against your home’s equity (second mortgages are also known as home equity loans ). It’s nice to have a large pool of money to draw from, but home equity loans can be dangerous. Your home serves as collateral for these loans. If you can’t repay, your lender can potentially foreclose and you d lose your home.

In the 2008 mortgage crisis, some people found that they relied too heavily on home equity: as equity increased, borrowers withdrew as much of it as they could in the form of cash. Unfortunately, equity from price appreciation can evaporate just as easily as it materializes. It s risky to scrape out as much as you can from your home s value.



USE Credit Union – Loans – Home Equity Loans #no #credit #auto #loans


#best home loans
#

Home Equity Loans

Affordable Financing Has A New Home: Yours!

Using your hard-earned savings for major expenses doesn t always make sense especially with interest rates at all-time lows. A better solution for most homeowners is a Home Equity Line of Credit or a fixed-rate Home Equity Loan two smart ways to use the equity in your home to get the cash you need. Use the money for remodeling projects, home repairs, a major purchase, emergencies, or to pay off higher-rate debt.

Home Equity Line of Credit

If you think you re borrowing needs will vary over time, a Home Equity Line of Credit is a good choice. It s flexible and can be customized to fit your budget and lifestyle. Simply establish your account today and use the funds as you need them.

  • Get up to $250,000 for any personal reason
  • Low variable rate based on the Wall Street Journal Prime Rate
  • Low interest-only payment options available
  • No points or origination fees
  • Tax-deductible interest for most homeowners
  • Easy checkbook access to your funds
  • Low minimum monthly payments

Fixed-Rate Home Equity Loan

If you need money for a one-time expense, a fixed-rate Home Equity Loan may be your best option. It s perfect for home remodeling or repairs, or anytime you need a lump-sum of cash.

  • Get up to $250,000 for any personal reason
  • Low fixed rate and low monthly payments
  • Flexible repayment terms — up to 25 years
  • No pre-payment penalty
  • Tax-deductible interest for most homeowners
  • Low minimum monthly payments
  • Minimal Fees

It s easy to get started. There s no application fee and you can apply online or at your USE branch. Still have questions? Call our Member Service Center at 866.873.4968 during regular business hours.

All loans subject to credit approval. Rates, terms, and conditions subject to change without notice. Must be owner-occupied, single-family residence or 1-4 story condominium in California only.

Home Equity Line of Credit Special Terms

If you close your line within three years of origination, an Early Account Closure Fee of $500 may be assessed. A Reconveyance Fee is charged when your line is closed and your balance is paid in full. The $50 Annual Fee is waived the first year and assessed on your anniversary date any year thereafter your balance falls below $10,000. USE will cover the following closing costs (fees): flood certification, title insurance, escrow, credit report, condo processing, mortgage recording, notary, trust documentation, release of third-party mortgage and an Automated Value Method (AVM). An optional appraisal may be requested at any time, the borrower will be required to pay the cost. Consult your tax advisor for potential tax deductibility.



Meaningful use creates consulting boom #meaningful #use #consultants


#

Demand for meaningful use help has exploded, increasing competition between third-party consulting firms-most of whom are excelling in MU-related work, according to a new report from research firm KLAS.

Most providers have not attested for meaningful use Stage 1, most frequently citing quality measures and reporting as their biggest challenges, the report notes. That has them increasingly reaching out to consultants for assistance, according to the KLAS report Rapid Growth of Meaningful Use Consulting: Why Providers Are Reaching Out.

User adoption, software upgrades, and updates also rank high among the challenges providers cite for implementing electronic medical records.

One CFO said, We were struggling to do the implementation ourselves, and I ultimately bit the bullet and hired [a consulting firm] to come in and help us get our act together. It turned out to be one of the best decisions of my professional career. ??

KLAS identifies a total of 51 firms that have conducted at least one MU-related project, engaging in everything from strategic advisory services and lead roles in implementations to supporting implementation engagements and to implementation and staff augmentation projects. Most firms are performing well and are satisfying healthcare provider expectations, according to KLAS. More than half (61 percent) of the ranked firms in the KLAS report achieved a score of 89 out of 100 or above.

The KLAS report distinguishes firms by the services they offer, the vendors they focus on, and their performance.

It also discusses providers’ biggest MU needs, which firms fill those needs, the market trends, and the future outlook on the market. Beyond attesting for Stage 1, healthcare providers are looking to consulting firms to partner with as they navigate years of upcoming regulations and potential policy changes, according to the report.



How to Use TSP to Purchase Your First Home #free #loan #calculator


#tsp loan
#

How to Use TSP to Purchase Your First Home

by Mark Kennan

You’ll owe extra tax penalties if you take an early TSP distribution.

TSP Loan

Complete the TSP application, including the amount you want to borrow from the defined contribution retirement savings plan. Loans are limited to no more than $50,000. You may be able to apply online or by using the TSP-20 form. Do not send in documentation of your home purchase with the loan application.

Trending in Your Area

Decorating Bathroom Mirrors

Decorating bathroom mirrors is something that you can.


  • How to Decorate Stairwells

    When decorating stairwells, one element that you can.


  • The Best Feng Shui Colors for a South-Facing.

    The best Feng Shui colors for a south-facing entrance.



  • Should You Use Credit Card Rewards to Pay Auto, Student Loans? #law #school #loans


    #credit card loan
    #

    Should You Use Credit Card Rewards to Pay Auto, Student Loans?

    There are currently several credit cards that allow you to use your cash-back rewards to pay your mortgage. These include the Wells Fargo Home Rebate card, and all of the Citi cards that earn ThankYou points. Additionally, the Upromise and Sallie Mae cards from Barclaycard US allow you to use cash back rewards to pay down student loans.  Now Wells Fargo is planning to introduce similar products that deliver cash-back rewards toward car or student loan payments.

    Is This Good for Cardholders?

    Wells Fargo has indicated that it is moving in this direction in order to encourage its customers to increase their credit card use. In addition, it hopes that these new products will appeal to consumers who have grown wary of taking on debt .

    Even if this strategy proves successful for Wells Fargo, will consumers be better off using a credit card that directs all rewards toward loan repayments?

    Here are a few things that cardholders should consider before committing to this strategy.

    Are you carrying a balance?

    As with any rewards card, those that pay down debt will have a higher interest rate than cards that offer no rewards. Furthermore, it makes little sense to pay down debts such as a mortgage or car loan with a relatively low rate, while carrying a balance on a credit card with a higher rate.

    See How Your Debt Profile Compares Get your FREE Credit Score & personalized Action Plan. See where you stand & learn ways to better manage your debt. FREE and updated every 30 days.

    Are you receiving a competitive rate of return?

    The Wells Fargo Home Rebate card returns a strong 3% rebate for purchases at gas stations, groceries and drug stores, but only for the first six months after opening an account. After that, all purchases receive only 1% cash back. In contrast, Capital One recently introduced its Quicksilver card that offers 1.5% cash back on all purchases.

    Is loan repayment the best use of your cash-back rewards?

    In most instances, consumers are right to avoid debt and repay their loans as quickly as possible. Nevertheless, there are times when it makes more sense to invest money. For example, many homeowners received extremely low interest rates in the past few years and can now earn higher rates of return on their investments than they are saving on interest payments. The fact that taxpayers can deduct interest from most home mortgages and some student loans further reduces the savings generated by early repayment. Furthermore, the Fidelity Rewards American Express card offers 2% cash back as payments towards qualifying investment accounts in their brokerage. This is double the rate of the Wells Fargo Home Rebate card.

    Are you disciplined enough to make additional loan payments?

    If you are able to find a cash-back card with a greater rate of return than a card that directly repays the loan, you can simply make loan payments using those funds. One way is to track your cash-back rewards each month and make an identical loan payment. Another is to estimate your annual rewards and set up a payment plan that represents your average month s rewards.

    It is nice to see banks using their creativity to offer innovative products designed to help cardholders reduce their debt, not increase it. But before cardholders jump on this bandwagon (or stagecoach ), they should consider all of the advantages and disadvantages of these products.

    Image: iStockphoto

    Sign up for our weekly newsletter.

    Get the latest tips & advice from our team of 50+ credit & money experts, delivered to you via email each week. Sign up now .

    Note: It’s important to remember that interest rates, fees and terms for credit cards, loans and other financial products frequently change. As a result, rates, fees and terms for credit cards, loans and other financial products cited in these articles may have changed since the date of publication. Please be sure to verify current rates, fees and terms with credit card issuers, banks or other financial institutions directly.

    Jason Steele has been writing about credit cards and personal finance since 2008, poring through the terms and conditions of credit card agreements to understand the minutiae of how these products work. His work has appeared on Yahoo, MSN, HuffingtonPost and other major news outlets. In his free time, Jason’s a commercial pilot. He graduated from the University of Delaware with a degree in History. More by Jason Steele

    Comments on articles and responses to those comments are not provided or commissioned by a bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by a bank advertiser. It is not a bank advertiser’s responsibility to ensure all posts and/or questions are answered.

    Please note that our comments are moderated, so it may take a little time before you see them on the page. Thanks for your patience.



    How to Pay Online With Debit or Credit Cards (Safely) #is #it #safe #to #use #a #debit #card #online


    #

    Tips for Using a Debit Card Online

    Updated May 09, 2017

    Your debit card makes it easy to spend from your checking account, and debit cards are accepted almost everywhere credit cards are accepted. But if you have the option to use a credit card, it’s probably safer to use credit — especially when shopping online.

    How to Use a Debit Card Online

    1. Enter the number: Provide your debit card number. which is a 16-digit number if you have Visa, Mastercard, or Discover. Again, you can enter a debit card number even if the merchant asks for a “credit card.”
    1. Verify details: In addition to a card number, most merchants require some sort of verification to reduce the chances of fraud. To do so, enter the security code (usually on the back of your card ) and any address information required – the zip code you enter must match the address on file with your bank.

    Unlike purchases at a checkout counter, you will not need to provide your PIN. Online purchases will be processed as a “credit” transaction. and funds will be deducted from your checking account within a few business days.

    Debit accepted? There are a few situations when an actual credit card is required (some hotel and rental car agencies will only accept a credit card – or they’ll lock up funds in your checking account ), but debit cards are fine for most transactions. Most online services like iTunes and Netflix will accept either, and they won t know or care that you re using a debit card.

    Debit cards are good tools for keeping your costs low and managing your money. They don’t come with the high monthly fees commonly found on credit cards, and they don’t allow you to rack up debt at high interest rates. However, there are benefits to using credit cards.

    When Credit Cards Are Better

    Just because you can order online with a debit card online doesn’t mean you should .

    Shopping online exposes you to certain risks, especially the risk that your card information will be stolen (that risk also exists in brick-and-mortar stores, but it’s not as easy for hackers to snatch your data).

    Direct link to checking: Your debit card pulls funds directly from your checking account. If somebody uses your card number to make fraudulent purchases, your account will get drained. That means it’ll be harder (or impossible) to pay for your expenses, like rent, mortgage, utilities, and food.

    If your card information is used fraudulently, you might be protected under federal law, but getting that money back into your bank account is a painful and slow process.

    If running out of money in your checking account would be a problem, use a credit card for everyday purchases instead.

    Credit cards create a buffer: A credit card creates a debt that you have to repay, but it doesn’t pull money out of your checking account without your knowledge. Thieves spend the card issuer’s money instead of yours, and you can get everything cleared up while keeping your checking account untouched. In other words, credit cards add an extra layer between thieves and your money. What’s more, when your credit card is used fraudulently, your liability is limited to $50, while debit card fraud can cost a lot more (especially if you don’t report fraudulent activity quickly enough).

    How to Stay Safe Using Your Debit Card

    To reduce the likelihood of problems, follow some basic security rules.

    1. Look for the lock: Make sure you’re shopping on a secure website, especially when it’s time to enter your card number. Look for the lock icon in your browser and pay attention to any security warnings that pop up.
    2. Monitor your account: It’s always a good idea to keep tabs on your money, and it’s especially important if you’re sharing account information online. Check on your accounts regularly (once per month is a bare minimum — more often is better). Set up alerts in your account so you know when money goes out.
    3. Use secure connections: Mobile devices and free Wi-Fi make it easy to get things done. But you never know how secure a public hotspot is. If you’re going to access financial accounts or punch in card numbers, save those tasks for when you’re at home or work and you know your traffic is safe.

    Debit Card Protection

    Federal law offers some protection against fraud in your checking account, but you have to report trouble as soon as possible. If you spot the problem and notify your bank, your liability can be limited:

    • You’re liable for up to $50 if you call your bank within two days of fraudulent use.
    • You’re responsible for up to $500 if you report the problem within 60 days.
    • You can be held 100% responsible if you don’t report the problem within 60 days.

    Some debit cards come with additional protection from the card issuer, so you’re safer than federal law requires. These services are often called “zero liability” policies or similar.

    However, your card still pulls from your checking account – so you’ll have to wait at least a few days to get your money back. If your checking account is running on empty, that’s going to cause a domino effect.

    If you re using a prepaid debit card (as opposed to one that came with your checking account), you might have less protection than described above — so be sure to research your card s policies before using it online.

    Is Online Really More Dangerous?

    Using a debit card online isn’t the only way to get ripped off. Thieves can steal your card information from brick-and-mortar stores, ATMs, gas pumps, or just about anywhere. They might pull it off with the help of a skimming device or by hacking into a merchant’s payment system remotely.

    Given all that, you shouldn’t necessarily fear punching in your debit card number online — shopping is quite safe on secured websites. But if you have the option, a credit card is better for everyday spending (and online purchases) — just be sure to pay the card off every month so you don’t pay finance charges. Especially if you’re not familiar with the merchant or you’re not shopping at a major website, it’s risky to provide any type of card number. If you want to be extra safe, add another layer between you and the merchant and pay with PayPal or a similar (but trustworthy) service.



    How SMEs Can Use Property Loans to Lower Their Borrowing Costs #small #business #funding


    #low interest rate personal loans
    #

    How SMEs Can Use Property Loans to Lower Their Borrowing Costs Propwise.sg Monday, 16 November, 2015

    Aktive Learning

    By Paul Ho (guest contributor)

    Singapore’s SMEs makes up 99% of all enterprises, employ 66% of the workforce and account for 48% of the GDP. SMEs are defined as having revenues of less than $100m and with a staff of less than 200.

    Singapore has narrowly averted a technical recession. But the PMI is below 50%, indicating a contraction in the manufacturing sector.

    Figure 1: Purchasing Manager’s Index (PMI), Singapore Institute of Purchasing and Materials Management (SIPMM)

    SMEs have limited access to loans during tough times

    A drop off in demand means that companies are hardly growing their top lines and may go into the red. This is especially true for SMEs with less than $10m in revenues.

    Figure 2: Singapore Quarterly GDP Growth rate (TradingEconomics, SingStats)

    Singapore’s corporate default rate of Corporations listed on the SGX is below 2%. SMEs likely have a higher default rate of at least 3 to 4%.

    Figure 3: Corporate NPL Ratio, Financial Stability Review 2014, MAS

    During the Global Financial Crisis in 2008, Singapore’s SMEs experienced a limited access to capital and funding. This led the government to enhance the various schemes that are in place to help SMEs retain access to credit. Most of these schemes involve the government risk-sharing with the banks on loans to SMEs.

    In short, this means that during tough times the banks cut back on SME lending exposure due to the potentially higher Non-Performing Loan risks. Hence funds will likely dry up during uncertain economic periods when SMEs need credit the most. Hence SMEs will be exposed to elevated funding disruption risks and increased cost of funding during recessionary periods, and need to take action now to secure funding.

    Discerning future interest rate trends by looking at the bond yield curve

    The bond yield curve gradient has become less steep, indicating slower growth. There is also higher mid and long term interest rate expectations, indicating inflation expectations or simply a higher interest rate environment. The 20 year Bond is currently at 2.9%.

    Figure 4: Singapore Bond Yield Curve End 2014 versus Nov 2015, Asian Development Bank

    Hierarchy of Borrowing Costs: Secured versus Unsecured Loans

    The impending weakness in the economy poses greater risks to SMEs than to large corporations.

    Secured lending refers to lending in which an asset is pledged. Secured lending presents less risk to the lender and hence they charge lower interest rates.

    Unsecured lending does not require pledged assets. Hence this presents greater risk to lenders and are more expensive. Small businesses usually have fewer assets to collateralize against and hence use secure loans less frequently. Unsecured Business Term Loan rates for SMEs are usually in the 10+% range, depending on loan size as well as tenure.

    The Micro Loan Program by Spring Singapore is also a good source of funding. However, not many companies qualify, and for those who qualify, they may not be able to obtain the maximum $100,000 loan. Interest costs start from 5.5% with up to a four year tenure.

    Problems faced by SMEs and their owners in obtaining credit

    Many SMEs may not have the right financing or salary structure. SME bosses tend to under-declare their income and instead declare dividends. Whilst this reduces their taxable income, with the new Total Debt Servicing Ratio (TDSR) rule, this also impedes many SME bosses from borrowing more to buy their homes.

    SMEs are suffering a margin squeeze. Faced with borrowing costs of around 10%, labour costs that are 5 to 10% of revenue, and other operating costs which could take up another 5 to 15% of revenue, these businesses need a gross margin in excess of 30% just to break even. Not many industries can offer gross margins in excess of 30%. Hence SMEs are especially sensitive to top line growth for those with 20+ to 40% gross margins.

    With market uncertainty, access to funds for SMEs could be even more restricted in the coming one to two years.

    How can SMEs overcome high cost of funding issues?

    SME bosses should start to realize that under-declaration of income impedes borrowing and start to rectify this situation to reflect their true income. While it is important to have a tax efficient salary structure using a combination of Salary, Director Fees and Dividends, it is worthwhile to review this to be eligible for adequate funding.

    SMEs, especially those whose directors who are currently in their late 30s and early 40s and who have bought their own residential homes, could be sitting on tied up equity in their properties. Residential home loan rates are around 2%. They could free up this capital by refinancing their homes and use the money to invest prudently in their own business. With this reduced cost of funding, the business owners could immediately save

    10% off borrowing costs.

    Case Study: SME owned by 2 Directors and 3 Shareholders

    Does it make sense to borrow against your home for a company in which you’re only one of the many directors?

    In this case I came across, the company had two directors and three shareholders. The two Directors owned 35% each of the business, while the rest of the shareholders held 10% each.

    They needed $500,000 of funds for business expansion.

    We advised the firm to structure a Director’s resolution to approve the company to request for a Shareholder Loan to the company at a 5% interest rate. The two major shareholders cum Directors held 70% of the shares, and hence were allotted $350,000 of the loan amount. Shareholders or Directors who did not wish to lend to the company at the approved 5% interest rate may give up their allotment. The unused allotment may be used by the other directors/shareholders equally.

    These two major shareholders then refinanced their residential property loan with a cash out (equity term loan) of $400,000 at 1.8% interest. They then lent their company $400,000 at a 5% interest, making a decent return on their loan to their own company. Another two shareholders took up their allotment and lent the company $100,000 at the same 5% interest.

    In this way, the company had access to cheaper capital, boosting its chances of survival and creating a fair debt offering for all directors and/or shareholders who wanted to participate. It’s similar to preferential bonds which only Directors and shareholders can participate in.

    SUMMARY

    SME owners should get their personal income structure right to optimize for both tax efficiency and borrowing capacity. They can then leverage on cheaper secured mortgages to free up equity from their house to lower their business borrowing costs by structuring a Director’s Loan to company.

    In order to lock in low rates from the residential property equity loan (cash out), it might be safer for SME owners to consider a three to five year fixed rate structure to hedge against rising interest rates.

    Investors with at least $300,000 of spare cash could also get in on the game to bridge the gap left behind by banks and lend to growing companies who can afford to pay 14 to 18% per annum in interest costs. But thorough risk assessment needs to be done to minimize default rates. Convertible loans can also be structured to give investors additional upside if there is a liquidity event (e.g. acquisition).

    By Paul Ho, holder of an MBA from a reputable university and editor of www.iCompareLoan.com. Singapore’s first Cloud-based Home Loan reporting platform used by Property agents, financial advisors as well as Mortgage brokers. Posted courtesy of www.Propwise.sg. a Singapore property blog dedicated to helping you understand the real estate market and make better decisions. Click here to get your free Property Beginner’s and Buyer’s Guide .



    What is meaningful use? Definition from #cms #ehr #meaningful #use


    #

    meaningful use

    Meaningful use (MU), in a health information technology (HIT) context, defines minimum U.S. government standards for using electronic health records (EHR ) and for exchanging patient clinical data between healthcare providers, between healthcare providers and insurers, and between healthcare providers and patients.

    Download this free guide

    Healthcare Compliance Essential Guide Collection

    OCR, CMS, ONC…the list of agencies and regulatory bodies that govern the use of health IT in the U.S. goes on. Download this essential guide collection now for an overview of these compliance resources, and make sure you stay compliant in this evolving health IT landscape.

    By submitting your personal information, you agree that TechTarget and its partners may contact you regarding relevant content, products and special offers.

    You also agree that your personal information may be transferred and processed in the United States, and that you have read and agree to the Terms of Use and the Privacy Policy .

    Its rules, known as meaningful use measures or meaningful use criteria, determine whether or not a healthcare provider may receive federal funds from the Medicare EHR Incentive Program, the Medicaid EHR Incentive Program or both, in cases of dually eligible practitioners (EP) and eligible hospitals (EH).

    Meaningful use stage 1, stage 2, stage 3

    Meaningful use is divided into three stages. Stage 1. which began in 2010, focused on promoting adoption of EHRs. Stage 2. finalized in late 2012, increases thresholds of criteria compliance and introduces more clinical decision support, care-coordination requirements and rudimentary patient engagement rules. Stage 3. which the Centers for Medicare Medicaid Services (CMS) rulemakers are writing from late 2014 through early-to-mid 2016, will focus on robust health information exchange as well as other more fully formed meaningful use guidelines introduced in earlier stages.

    According to the provisions of the Health Information Technology for Economic and Clinical Health (HITECH ) Act of 2009, organizations that are eligible for the Medicare EHR Incentive Program and achieve meaningful use by 2014 will be eligible for incentive payments; those who have failed to achieve that standard by 2015 will be penalized, unless Congress overrides that portion of the 2009 HITECH Act that codified CMS’s rulemaking timeline into law.

    While meaningful use is voluntary, it is often referred to as a carrot-and-stick program whose penalties provide a strong economic compulsion to participate. Penalties against Medicare and Medicaid reimbursements for skipping meaningful use will increase in each successive year, expressed as a payment adjustment or reduction of a provider’s reimbursement for care provided to Medicare or Medicaid patients. If fewer than 75% of EPs have become meaningful users of EHRs by 2018, the adjustment will change by 1% point each year to a maximum of 5%.

    But because the meaningful use program is technically voluntary, meaningful use criteria are considered to be guidelines, as opposed to meaningful use regulations.

    ONC Meaningful Use Certified EHR Technology (CEHRT)

    Healthcare providers can only prove compliance with meaningful use while using government-certified EHR technology, commonly referred to as CEHRT. Meaningful use criteria for healthcare providers are written by CMS, with input from the Office of the National Coordinator for Health IT (ONC). EHR vendors, however, get their systems certified under rules written by the ONC, which currently are updated yearly. Some years CEHRT rules are voluntary, in other years they’re mandatory.

    CMS has indicated that all CEHRT rules, in the future, may be tied to one or more of its provider reimbursement programs beyond meaningful use, such as the Physician Quality Reporting System (PQRS), a voluntary program that rewards providers who can prove they meet specific care-quality measures.

    The net effect of requiring meaningful use CEHRT for other programs will be de facto forcing vendors to certify their EHRs in years when CEHRT rules are voluntary, if they want to hold on to customers in the programs for whichCMS requires CEHRT such as, potentially, PQRS.

    Meaningful use attestation, meaningful use penalties, meaningful use audits

    To have received the maximum reimbursement, physicians and hospitals must have attested (essentially, swearing to a CMS website that one has met all of the criteria for a particular stage) stage 1 of meaningful use of EHR for at least a 90-day period within the 2011 or 2012 federal fiscal year and for the entire year thereafter.

    While there is little validation required to attest to meaningful use, providers who have attested are subject to random audits, sometimes before CMS cuts their next incentive check, sometimes after the fact. Keeping detailed documentation proving meaningful use is essential to passing the audits and keeping EHR incentive program funds. Many providers who have failed audits as of late 2014 have done so because of inadequate or nonexistent HIPAA risk assessments, which are required under meaningful use.

    Those eligible for the Medicaid program must demonstrate meaningful use by 2016 in order to receive incentive payments. Many healthcare providers attested to stage 1 in its early years in order to receive the maximum incentives from Medicare, Medicaid or both; in 2015 and 2016, many of these providers are expected to drop out as stage 2 attestation becomes due, because of the difficulty in attesting. Those who have attested cite the view, download and transmit criteria as well as care-coordination criteria to be the most difficult with which to comply.

    Recent changes to meaningful use stage 2 and stage 3 timelines

    To help potential program dropouts stay in the program, CMS adjusted timelines for meaningful use. In a 2014 final rule, CMS extend Stage 2 through 2016 and delayed the start of Stage 3 until 2017. These proposed changes, CMS said, would address concerns raised by stakeholders and will encourage the continued adoption of Certified EHR Technology.

    Further changes may be legislated by Congress if bills up for consideration become law. For example, beginning in 2015, all eligible hospitals and professionals on the Medicare EHR Incentive Program side must use CEHRT based on 2014 standards. And, to attest to stage 2 and avoid future penalties, they must attest for the full calendar 2015. The Flex-IT bill before Congress, advocated by many healthcare providers, proposes reducing that to 90 days, pegged to any calendar quarter.

    This was last updated in May 2010

    Continue Reading About meaningful use

    Related Terms

    meaningful use stage 3 Meaningful use stage 3 is the third phase of the federal incentive program that details requirements for the use of electronic. See complete definition Meditech (Medical Information Technology Inc.) Meditech (Medical Information Technology Inc.) is an electronic health record vendor that holds a 19% market share in the. See complete definition US Department of Health and Human Services (HHS) The U.S. Department of Health and Human Services (HHS) is a cabinet-level agency in the executive branch of the federal. See complete definition

    PRO+

    Content



    Meaningful Use Consulting #meaningful #use #consultants


    #

    Meaningful Use Consulting

    1-800-362-2320 or 1-608-274-1940, ext. 8252

    MetaStar’s Meaningful Use (MU) consulting services efficiently guide your practice, clinic, hospital or hospital system through the complex federal requirements of any stage of MU. MetaStar has helped more than 2,000 providers attest to MU as Wisconsin’s Regional Extension Center since 2010 and continues to provide attestation assistance and audit preparation as a consulting service.

    Please note if you have formerly participated in the Medicare EHR incentive program, as of January 2017 that program has been transitioned to the Quality Payment Program. For more information, click here .

    Our service can include:

    • Onsite consulting services
    • Access to our online resource center and meaningful use help desk
    • Attestation assistance for any stage of meaningful use
    • Planning for electronic health record (EHR) implementation (your first or a new EHR)
    • EHR vendor selection assistance
    • Project management
    • Workflow redesign
    • MU measure education
    • An action plan tailored to your organization’s response to meaningful use audits
    • A mock audit to ensure your organization is prepared
    • Assistance during an audit to aid in an efficient, correct response

    Get Meaningful Use Assistance

    For providers enrolled in Wisconsin Medicaid, consulting services may be available at no cost to you.



    Pros and Cons for Kids Internet Use #internet #use #kids,chat #rooms #kids,message #boards,online #sex


    #

    Pros and Cons for Kids’ Internet Use

    This content has not been reviewed within the past year and may not represent WebMD’s most up-to-date information.

    To find the most current information, please enter your topic of interest into our search box.

    “>From the WebMD Archives

    May 1, 2006 — The Internet may be a help or a hazard when kids go online, new research shows.

    Some of those risks and benefits are highlighted in a special issue of the journal Developmental Psychology. Among the findings:

    • Message boards about self-injurious behavior (such as cutting) included social support and risky content.
    • Kids’ age is a big factor in how well they understood the Internet.
    • Low-income kids got better grades and test scores in reading after being given home Internet access.
    • In online chat rooms, youths were less likely to curse or engage in sexual talk if the chat room had a monitor.
    • Sexual health information was a popular Internet topic for teens in the African nation of Ghana.

    Self-Harm and Message Boards

    Message boards about self-harm, such as cutting oneself, was the topic for Cornell University’s Janis Whitlock, PhD, MPH, and colleagues.

    Whitlock’s team identified 400 message boards about self-harm and did an in-depth study of 10 of those message boards. They focused on sites that weren’t highly moderated, in order to avoid censors.

    The boards had between 70 and more than 6,600 members. When membership information was available, most members claimed to be young women in their teens and 20s.

    Over two months, the researchers studied more than 3,200 postings on the message boards. Most of those messages — more than one in four — offered informal support, such as, “We’re glad that you’re here” or “Just try to relax and try to breathe deeply and slowly.”

    But 9% of the messages mentioned ways to conceal self-harm and its effects (such as scars) and nearly as many mentioned the “addictiveness” of self-harm.

    Those message boards may have provided “essential social support for otherwise isolated adolescents,” write Whitlock and colleagues.

    However, the researchers also voiced concern that some content on the boards might reinforce or promote self-harm.

    A larger, longer study would help, the researchers note. Meanwhile, they stress stress that “it is very important for adults to know something about what adolescents, particularly vulnerable adolescents, encounter in the virtual communities they inhabit.”

    Continued

    Age Is Important

    “Age matters” in how well kids understand the Internet, writes Zheng Yan, EdD.

    Yan is an assistant professor at the University of Albany’s School of Education. He studied 322 elementary and middle-school kids in New England.

    The students answered questions about the Internet’s technical and social complexity, including:

    • “What is the Internet?”
    • “If you could walk into the Internet, what would it look like?”
    • “What kinds of good things can happen to us when we go to web sites?”
    • “What kinds of bad things can happen to us when we use email?”
    • “Do you need to be careful when you go to the WWW?”

    In terms of understanding the Internet, kids’ age was more important than gender, history of Internet use, frequency of Internet use, and participation in informal classes, Yan found.

    He suggests using highly restricted filtering programs and kid-oriented sites for very young kids, with less restrictive filters for older children.

    Better Grades With Internet Use?

    Michigan State University’s Linda Jackson, PhD, and colleagues studied 140 children from low-income families who had never had home Internet access.

    The kids received home computers and free Internet access for nearly a year and a half. The researchers checked the kids’ grades and test scores before and after the study.

    The kids with the greatest home Internet use had higher grade-point averages and reading test scores at six months, one year, and 16 months of home access.

    The opposite wasn’t true. That is, the kids with the highest grades and reading scores before the study didn’t use the Internet more than other children, Jackson’s team writes.

    The kids used the Internet for an average of 30 minutes daily, mainly surfing the web. Web sites typically have text, letting kids practice reading. Web sites don’t usually involve math, and math scores didn’t change in the study.

    After the study, the families kept the computers and received help in finding low-cost Internet access.

    Crude Language in Chat Rooms

    When teens visit moderated chat rooms, they’re less likely to swear and engage in racy talk than if they visit chat rooms without moderators.

    Continued

    That’s what Kaveri Subrahmanyam, PhD, and colleagues found when they studied 583 teens who visited a moderated and unmoderated chat room. The chat rooms were designed as places for teens to hang out, without specific topics.

    Subrahmanyam works at California State University and is also associated with the Children’s Digital Media Center at UCLA. She and her colleagues tracked the chat rooms from afar without joining in any conversations.

    Unmonitored chats had more cursing and sexual content. Monitored chats “provided a relatively safe haven for participants who present themselves as young and female,” write Subrahmanyam and colleagues.

    It’s hard to know if chatters were who they claimed to be, the researchers point out.

    Seeking Sex Information

    U.S. youths aren’t the only ones going online with sex on their minds.

    A study of 778 teens aged 15-18 in the African nation of Ghana shows that two-thirds had gone online, mainly at cafes with Internet access. All of the teens lived in Ghana’s capital, Accra.

    More than half of the teenage Internet users had sought health information, and sexual health information (including sexually transmitted diseases ) was a leading health topic.

    “Across the globe, young people try to obtain information about health, especially sexual health,” write the researchers, who included Dina Borzekowski, EdD, an assistant professor at the Johns Hopkins Bloomberg School of Public Health.

    “Nothing will or should replace interactions with health providers, but easily accessible, understandable, credible, and confidential information can improve the lives and choices of young people,” the researchers write.

    “The Internet is an invaluable tool for adolescents who use it to look for answers to personal, sensitive, and embarrassing questions about their bodies, relationships. and health,” write Borzekowski and colleagues.

    WebMD Health News Reviewed by Louise Chang, MD on May 01, 2006

    Sources

    SOURCES: Whitlock, J. Developmental Psychology, May 1, 2006; vol 42. Yan, Z. Developmental Psychology, May 1, 2006; vol 42. Jackson, L. Developmental Psychology, May 1, 2006; vol 42. Subrahmanyam, K. Developmental Psychology, May 1, 2006; vol 42. Borzekowksi, D. Developmental Psychology, May 1, 2006; vol 42. News release, American Psychological Association.

    © 2006 WebMD, Inc. All rights reserved.



    Hard Money Loans secured by Real Estate for Homes, Apartment, Mixed Use Properties in California. #compare #home #loan #rates


    #hard money loan
    #

    Q: When are private investor / hard money loans used?

    A:The most common situations that a person will require a private investor / hard money loan is as follows: Recent Bankruptcy. Balloon payment on existing loan is due now. Cannot verify income, tax returns, bank statements, etc. Need emergency cash quickly. Odd or non-conforming types of properties, such as mixed use, multiple units, apartments, land, etc.

    Q: Why would a person invest in a hard money loan?

    A: Most private investors understand the real estate market, real estate loans and mortgages and are looking for a safe and secure investment with a return better than what they will receive from the bank. Since this types of mortgages are secured by a property with normally 30%- 50% equity, the investor is well protected and receives the benefit of the higher interest rate return.

    Q: Are most private investors / hard money lenders trying to foreclose on your home to get the property?

    A: No. Private investors / hard money lenders simply want a good return on their investment but they will protect themselves from losing the investment by using the equity in the property. This is a common misconception, private investors / hard money lenders just want the payments made on time but if the borrower is having difficulty they will insure that it will not be a long term problem.

    Q: Do I need to provide all my documentation regarding income, bills, etc?

    A: This is dependent from investor to investor but typically you will only need to provide minimum documentation to obtain the loan. Also these types of loans are a true no income qualifier loan because you do not need to sign a 4506 or 8821 form.

    Q: What if I am a home buyer with damaged or poor credit with a low FICO score?

    A: These types of loan are usually used by individuals with past, recent, or current credit issues to rebuild their credit and eventually refinance to a more traditional type loan. FICO scores are no reviewed or required for this type of loan. Get your free credit report here.

    Q: As a Mortgage Broker / Banker, can I obtain a private investor loan for my borrower and still receive a commission?

    A: Yes, in fact, most loans funded by private investors where originally originated and packaged by a mortgage broker or banker who earned a commission from a loan that they could not previously close with traditional wholesale lenders and investors.

    Thank you for visiting.

    Privacy Information



    USE Credit Union – Loans – Home Equity Loans #bad #credit #unsecured #loan


    #best home loans
    #

    Home Equity Loans

    Affordable Financing Has A New Home: Yours!

    Using your hard-earned savings for major expenses doesn t always make sense especially with interest rates at all-time lows. A better solution for most homeowners is a Home Equity Line of Credit or a fixed-rate Home Equity Loan two smart ways to use the equity in your home to get the cash you need. Use the money for remodeling projects, home repairs, a major purchase, emergencies, or to pay off higher-rate debt.

    Home Equity Line of Credit

    If you think you re borrowing needs will vary over time, a Home Equity Line of Credit is a good choice. It s flexible and can be customized to fit your budget and lifestyle. Simply establish your account today and use the funds as you need them.

    • Get up to $250,000 for any personal reason
    • Low variable rate based on the Wall Street Journal Prime Rate
    • Low interest-only payment options available
    • No points or origination fees
    • Tax-deductible interest for most homeowners
    • Easy checkbook access to your funds
    • Low minimum monthly payments

    Fixed-Rate Home Equity Loan

    If you need money for a one-time expense, a fixed-rate Home Equity Loan may be your best option. It s perfect for home remodeling or repairs, or anytime you need a lump-sum of cash.

    • Get up to $250,000 for any personal reason
    • Low fixed rate and low monthly payments
    • Flexible repayment terms — up to 25 years
    • No pre-payment penalty
    • Tax-deductible interest for most homeowners
    • Low minimum monthly payments
    • Minimal Fees

    It s easy to get started. There s no application fee and you can apply online or at your USE branch. Still have questions? Call our Member Service Center at 866.873.4968 during regular business hours.

    All loans subject to credit approval. Rates, terms, and conditions subject to change without notice. Must be owner-occupied, single-family residence or 1-4 story condominium in California only.

    Home Equity Line of Credit Special Terms

    If you close your line within three years of origination, an Early Account Closure Fee of $500 may be assessed. A Reconveyance Fee is charged when your line is closed and your balance is paid in full. The $50 Annual Fee is waived the first year and assessed on your anniversary date any year thereafter your balance falls below $10,000. USE will cover the following closing costs (fees): flood certification, title insurance, escrow, credit report, condo processing, mortgage recording, notary, trust documentation, release of third-party mortgage and an Automated Value Method (AVM). An optional appraisal may be requested at any time, the borrower will be required to pay the cost. Consult your tax advisor for potential tax deductibility.



    Simple Steps To Use An EMI Calculator For Your Home Loan #loans #for #people #with #bad #credit


    #home payment calculator
    #

    Simple Steps To Use An EMI Calculator For Your Home Loan

    Nov 16, 2015

    EMIs are the Equated Monthly Installments which each borrower has to pay every month to the financial institution to repay the loan amount. The EMI for any individual is calculated taking three factors into account. The principal loan amount, the interest charged and the tenure of the loan are used to calculate the EMI. Most financial institutions provide their customers with an EMI calculator for home loans free of cost.

    All home loan applicants must use this tool to calculate their EMIs for the month. The reason being that rather than calculate it by oneself which can lead to miscalculation and incorrect amounts. The incorrect calculation can have a serious effect. If the individual does not repay the correct EMI on time and defaults on their payment, they can face serious problems with the financial institution. One of the repercussions of defaulting on the repayment of the loan is that it reduces the individual’s credit score. A low credit score can make it difficult for the individual to get loans approved in future. Another repercussion which is far more serious is that the financial institution may sell the house purchased and get back the loan amount.

    Hence all home loan applicants must make use of the EMI calculator for home loan to calculate their EMIs and make their payments of time. This tool can be also used by individuals who have opted for a floating interest rate. Since the interest rate is constantly changing, the individual must use the calculator to calculate two EMI amounts. These amounts will be calculated using a predicted increase and decrease in the interest rate. This allows the individual to be prepared for both scenarios and be able to afford the EMI charge.

    EMI calculators for home loans are fairly easy to use by any individual. They are easily available and all that is required by the individual is to fill in the details. Using the information present in the home loan contract, the individual can fill in the principal loan amount, the interest charged by the financial institution and also the tenure of the loan. The calculator will then provide the EMI required to be paid. The calculator also provides details about the amount of interest and principal loan amount is being paid in each month’s EMI. This information comes handy for those who are planning to prepay their home loan.

    This EMI calculator for home loan is extremely easy to use. Using this tool ensures that a borrower repays the correct EMI amount every time.

    About the Author

    The author is a seasoned writer on finance topics and through her writing; she articulates aspects of home loan that are important to people availing the housing loan facility. She writes about a variety of topics covering the home loan documents, rates, & EMI calculator for home loan that help to make the best decision.



    How to Choose and Use Financial Software – Personal Finance. #loan #agreement #form


    #personal finance
    #

    How to Choose and Use Financial Software

    Tips

    • Be sure to investigate the security of a site or program before entering your personal financial data.
    • If you choose to purchase any personal-finance software, search online for any coupon codes or discounts.
    • Tax programs are ideal if your tax return is relatively simple. Make sure the program you’re considering is current with the latest tax code.
    • Related How-Tos

      Feedback

      Hop in your car for a long drive and you probably start glancing at your speed, gas, miles and temperature gauges. Yet during that other long drive known as life, most of us turn a blind eye to our financial gauges—either out of fear or because we aren’t sure what to do about what we see.

      When installed on your computer, financial software functions like a dashboard for your money, tracking your transactions and giving you early warning when problems arise. Most programs track and display your budget, spending, banking, bills, savings, investments, retirement plans and debt levels—all in one convenient place.

      The more often you look at these numbers, the richer you’re likely to become. Studies show that people who get into the habit of monitoring their money wind up wealthier than those who don’t.

      Generally, financial software divides into two broad categories—money-management and tax-preparation programs. Among the best-known money management programs are Intuit s Quicken. Microsoft Money or iCash. Web-based money management programs include Mint. Wesabe and Geezeo. For tax preparation, Intuit s Turbo Tax and H R Block s software are the leading brands.

      Money-management software offers:

      • Budgeting — You set spending limits and manage your cash flow.

      • Banking — Pay bills electronically on time, print checks and reconcile account balances.

      • Planning — Monitor and pay down debt, estimate major life expenses, forecast retirement needs, and run calculations.

      • Investing — Get stock quotes and track your portfolios.

      • Reports — Print out summarizations and charts of your finances for review.

      • Taxes — Export financial data into tax-preparation software.

      Tax-prep software offers:

      • Planning — Get tax advice on retirement, estate plans, investing and small business.

      • Importing — Allows financial data to be transferred in from other software programs.

      • Forms — Access federal and state forms.

      • Reference — Latest IRS publications inform you of rules and regulations.

      • Deductions — Information on applicable itemized deductions.

      • Error checks — Reviews returns for miscalculations.

      • On line filing — Confirmation that e-filed tax returns have been received as well as status updates.

      Should You Buy It?

      You could track your finances for free using a pad and pen—or an Excel spreadsheet. But the tedium of doing so could result in mistakes and make you give up.

      Money-management software organizes your day-to-day financial life in a way that’s easy to grasp at a glance and automatically updates much of the data.

      Even if you use a certified financial planner (CFP) or financial adviser, these experts focus on the big picture, not your day-to-day money matters. So money management software is still key for tracking your financial life.

      If you employ a certified public accountant (CPA) for ongoing tax advice or a tax preparer for your returns, tax-prep software may be unnecessary. However, if you’re unsure whether software would be a less expensive alternative to your tax preparer, you can conduct a free trial of a tax-prep program (usually available on the maker s Web site) to see how your results compare with professional help before making the switch.

      Choosing a Program

      There are dozens of money-management and tax-prep software programs on the market. Some are downloads or discs that are installed on your computer. Others are web-based and house your data online. Take an online tour or download a free trial version before making a purchase.

      You want see that a program’s pages are logically designed, that the setup will work smoothly for you and that its features can handle your financial needs. Not all programs offer the same features, and some provide more bells and whistles than you may want or need, such as the ability to find loan rates and link to a PayPal account.

      To get the best deal on a money-management or tax-prep program, type the program’s name + “coupon” into Google and compare prices. Many sites offer e-coupon codes that are good at online retailers such as Amazon.com and YahooShopping.com .

      Money-management programs. These financial programs can be purchased online or in stores—or downloaded for a fee and then installed on your computer. They are ideal for anyone who wants to ensure privacy, since the information will be only on your computer.

      Just remember to back up your computer regularly to an external hard drive to ensure your data is protected should your computer be damaged or crash. Popular programs include:

      Free web-based money-management sites. These sites host your data online. You open a free account and type your financial data onto money-management screens in a secure, privacy-protected space. The sites make money through advertising and other marketing strategies.

      The good news is that your data is available from any computer by using your password. And if your computer fails, your data will be unaffected. These sites are ideal for those who can’t afford pricey programs or want to see whether free site-based help will suffice for their financial needs. The potential drawbacks: You get what you pay for, and many people may wonder just how safe their most data is sitting on someone else’s server. Popular sites include:



    Use free Mortgage Comparison Calculator to compare various loans #loan #mortgage #calculator


    #compare home loans
    #

    Loan Comparison Calculator

    User Rating. ( 3 votes, average: 5 out of 5 )

    This mortgage loan rate calculator compares loans with different mortgage rates, loan amounts or terms. Compare two fixed rate loans with different rates repayment periods. Or view two different loan amounts that carry the same interest rate and repayment period.

    How this Loan Comparison Mortgage Calculator Works

    • Enter the loan amount, interest rate, and repayment term (length of loan) for two loans you’re considering.
    • A screen pops up showing the total monthly Principle Interest (P I) payment, the total of all payments for the entire loan term, and the total amount of interest you would pay for the entire loan term.
    • If you want to compare more than two mortgage loans, click “start over.”

    How Comparing Loans Can Help

    Let’s say you’re trying to decide whether to buy a home with a low down payment and a 30 year repayment term, or if you should make an additional $25,000 down payment and reduce the loan term to 15 years. The first loan amount is $250,000, with an interest rate of 5.50% for a term of 30 years. The second loan amount is $225,000, at a rate of 5.25%, repaid over 15 years. (This is a simplified example, and doesn’t include lender charges and other costs).

    The loan comparison calculator assists in determining how much you can borrow to achieve an affordable payment, or if borrowing more over a longer term can meet your needs. Using different calculator tools can help you get the maximum benefits from refinancing or a new mortgage.

    If you’re using this calculator now, you’re already halfway to getting the best deal – examining the different options available to you, and within your own budgetary constraints. You should also be comparing lenders to find the best deal. Consider requesting competing quotes from our pre-screened lenders. There’s no obligation, and the service is absolutely free. You may receive up to four different quotes to choose from, customized exclusively for you!

    14 Responses to “Loan Comparison Calculator”

      shawn 25, Feb, 2010

    great site

    Reply Captain Obvious 01, Dec, 2008

    “. compare up to three different loans. ” Why then are there places only for two plans? – – – – EDITOR’S COMMENT: Good point, Captain Obvious! I’ll change the description. That calculator only compares two fixed rate loans. It should not say otherwise.

    Reply marcy 24, Nov, 2008

    great site. thanks

    Reply rudy 06, Apr, 2008

    thanks

    Reply Keegan 17, Feb, 2008

    Marco – – – – EDITOR’S REPLY: Marco? What other response is there: Polo!

    Reply Cindy 18, Dec, 2007

    It would be helpful if this calculator compares different plans (e.g. I-O loans, ARMs, etc) instead of having just a variable repayment period. Overall, helpful website & tools though. Thanks! – – – – EDITOR’S COMMENT: There is an Interest Only (IO) calculator on this site. As far as ARMs, the fixed rate calculator will work for an ARM until the first adjustment period. After that, the rate changes to an amount that cannot be pre-determined. At some point, we’ll add a tool that allows you to play what-if scenarios so you can see what the various possible adjustments might look like in a worst-case, best-case, and anticipated case scenario, but that’s more of a what-if tool than a calculator. There’s no real way to accurately predict what an ARM loan is going to look like once the adjustments start kicking in.

    Reply carol rose 18, Nov, 2007

    looking for quote – – – – EDITOR’S COMMENTS: Happy to help, Carol 🙂 Click on the “Get Quotes” link, right below the calculator. That brings you to a page that will help you locate lenders that specialize in the type of loan you’re looking for and request quotes from up to four of them. It’s a service provided by Guide to Lenders. We’ve been working with them for years and we get great feedback on the service they provide. Happy rate shopping!

    Reply chase 13, Nov, 2007

    its cool but i was told to go to here buy my teacher and i hate following directions so this sucks



    USE Credit Union – Loans – Home Equity Loans #interest #rates #today


    #best home loans
    #

    Home Equity Loans

    Affordable Financing Has A New Home: Yours!

    Using your hard-earned savings for major expenses doesn t always make sense especially with interest rates at all-time lows. A better solution for most homeowners is a Home Equity Line of Credit or a fixed-rate Home Equity Loan two smart ways to use the equity in your home to get the cash you need. Use the money for remodeling projects, home repairs, a major purchase, emergencies, or to pay off higher-rate debt.

    Home Equity Line of Credit

    If you think you re borrowing needs will vary over time, a Home Equity Line of Credit is a good choice. It s flexible and can be customized to fit your budget and lifestyle. Simply establish your account today and use the funds as you need them.

    • Get up to $250,000 for any personal reason
    • Low variable rate based on the Wall Street Journal Prime Rate
    • Low interest-only payment options available
    • No points or origination fees
    • Tax-deductible interest for most homeowners
    • Easy checkbook access to your funds
    • Low minimum monthly payments

    Fixed-Rate Home Equity Loan

    If you need money for a one-time expense, a fixed-rate Home Equity Loan may be your best option. It s perfect for home remodeling or repairs, or anytime you need a lump-sum of cash.

    • Get up to $250,000 for any personal reason
    • Low fixed rate and low monthly payments
    • Flexible repayment terms — up to 25 years
    • No pre-payment penalty
    • Tax-deductible interest for most homeowners
    • Low minimum monthly payments
    • Minimal Fees

    It s easy to get started. There s no application fee and you can apply online or at your USE branch. Still have questions? Call our Member Service Center at 866.873.4968 during regular business hours.

    All loans subject to credit approval. Rates, terms, and conditions subject to change without notice. Must be owner-occupied, single-family residence or 1-4 story condominium in California only.

    Home Equity Line of Credit Special Terms

    If you close your line within three years of origination, an Early Account Closure Fee of $500 may be assessed. A Reconveyance Fee is charged when your line is closed and your balance is paid in full. The $50 Annual Fee is waived the first year and assessed on your anniversary date any year thereafter your balance falls below $10,000. USE will cover the following closing costs (fees): flood certification, title insurance, escrow, credit report, condo processing, mortgage recording, notary, trust documentation, release of third-party mortgage and an Automated Value Method (AVM). An optional appraisal may be requested at any time, the borrower will be required to pay the cost. Consult your tax advisor for potential tax deductibility.



    Simple Steps To Use An EMI Calculator For Your Home Loan #home #equity #loans


    #home payment calculator
    #

    Simple Steps To Use An EMI Calculator For Your Home Loan

    Nov 16, 2015

    EMIs are the Equated Monthly Installments which each borrower has to pay every month to the financial institution to repay the loan amount. The EMI for any individual is calculated taking three factors into account. The principal loan amount, the interest charged and the tenure of the loan are used to calculate the EMI. Most financial institutions provide their customers with an EMI calculator for home loans free of cost.

    All home loan applicants must use this tool to calculate their EMIs for the month. The reason being that rather than calculate it by oneself which can lead to miscalculation and incorrect amounts. The incorrect calculation can have a serious effect. If the individual does not repay the correct EMI on time and defaults on their payment, they can face serious problems with the financial institution. One of the repercussions of defaulting on the repayment of the loan is that it reduces the individual’s credit score. A low credit score can make it difficult for the individual to get loans approved in future. Another repercussion which is far more serious is that the financial institution may sell the house purchased and get back the loan amount.

    Hence all home loan applicants must make use of the EMI calculator for home loan to calculate their EMIs and make their payments of time. This tool can be also used by individuals who have opted for a floating interest rate. Since the interest rate is constantly changing, the individual must use the calculator to calculate two EMI amounts. These amounts will be calculated using a predicted increase and decrease in the interest rate. This allows the individual to be prepared for both scenarios and be able to afford the EMI charge.

    EMI calculators for home loans are fairly easy to use by any individual. They are easily available and all that is required by the individual is to fill in the details. Using the information present in the home loan contract, the individual can fill in the principal loan amount, the interest charged by the financial institution and also the tenure of the loan. The calculator will then provide the EMI required to be paid. The calculator also provides details about the amount of interest and principal loan amount is being paid in each month’s EMI. This information comes handy for those who are planning to prepay their home loan.

    This EMI calculator for home loan is extremely easy to use. Using this tool ensures that a borrower repays the correct EMI amount every time.

    About the Author

    The author is a seasoned writer on finance topics and through her writing; she articulates aspects of home loan that are important to people availing the housing loan facility. She writes about a variety of topics covering the home loan documents, rates, & EMI calculator for home loan that help to make the best decision.



    Is It Illegal to Find an Alternative Use for a Loan? #2000 #loan


    #loan money
    #

    What Can I Use My Loan Money For?

    By Justin Pritchard. Banking/Loans Expert

    Justin Pritchard helps consumers navigate the world of banking.

    When you borrow money, you might wonder what you can spend the funds on. You might find that you ve got more money on your hands than you actually need (intentionally or by accident). The most brazen borrowers take a loan out without any desire to use the loan for its intended purpose.

    Others simply use the funds for daily living: paying bills. buying groceries, and so on.

    What s the Money For?

    Lenders often want to restrict how funds are used. Loan interest rates typically take into account the risk that the lender expects to take, and that depends in part on the purpose of the loan. Riskier loans have different terms than less-risky loans.

    For example, a mortgage is generally used to purchase a home — which the lender can take possession of and sell if you default on your payments.

    Likewise, student loans are presumably used for education. The government subsidizes some student-loan interest because an educated population is considered a good investment. Furthermore, banks are willing to offer attractive student loans because college-educated adults will be more likely to have the income needed for repayment.

    If your contract/agreement says that you must use the funds for a certain purpose, you re taking a risk by doing something you agreed not to do. If you fail to keep your end of the bargain, the lender may choose to end the agreement and demand that you return the money.

    Continue Reading Below

    Getting the money back quickly and without cost may be a challenge. For example, you may have to pay a penalty on early distribution from a CD, or you might not have the money available anywhere.

    Some loans can be used for whatever you want. Credit cards and signature loans give you access to cash, and all lenders care about is getting repaid.

    Playing With Fire

    Technically, using your loan money for ‘alternative’ purposes may not be illegal. However, there is a risk that your lender will take legal action against you (if they find out that you’ve used the money in a way that s different than you promised).

    Student loans can be especially troublesome. Those debts cannot be wiped out — even in bankruptcy, so they ll haunt you for life if you fall on hard times. If you use student loan money for something besides your education, you re taking a big risk.



    Personal Loans for Business Use #cheap #loans


    #loans for small business
    #

    Get a Personal Loan for Your Small Business

    Looking for small business loans? Prosper can help you get personal loans to use for your small business.

    Prosper loans are not traditional small business loans. Our personal loans are based on your credit score, and issued to you as an individual (not a business). For some small business owners needing loans, a personal loan won’t answer their needs—but for other entrepreneurs, it’s perfect. In some cases, such as when a business doesn’t yet have a proven track record, our small business loans can provide lower rates or even just the ability to get a loan.

    Whether it’s a personal loan for a new business, a small business, or a larger, more established one, turn to Prosper for unsecured personal loans at the rates you’ve been searching for.

    Peer-to-peer lending gives investors an opportunity to fund small business loans

    Our lending model is based on people helping other people. Chances are, there are lenders in our marketplace community who would like to empower your new business or start-up by providing you a loan. Many of them understand what a struggle it can be to find the right loan, and they’re willing to help you financially.

    Get Personal Loans for your New Business

    Do you have a great idea for a first time new business, but lack sufficient backing for a loan? We understand getting new business loans can be challenging, but we may be able to help you and your new business with the loans you need.

    Turn to Prosper for unsecured loans at great rates. You won’t need to put up any collateral or refinance your home to get the funds you need. Personal loans for small business use are issued to you as an individual, and are dependent on your good credit. Because of this, Prosper can be perfect for a new small business.

    Need a Personal Loan for your Small Business?

    Being your own boss in a small business often isn’t easy — but the rewards can be immeasurable. If you need loans for your small business, you’ve come to the right place.

    One of the most difficult roadblocks to overcome can be finding the right small business loan at the great rate you need. And yet, small businesses provide the essential financial backbone in our local communities. At Prosper, we understand this.

    Personal loans can be a sensible alternative to small business loans in situations where the small business doesn’t yet have a solid history of profit, or can’t currently provide the documentation and analysis a bank requires to consider a small business loan. The personal loan is issued to an individual—the business owner—based on their credit. It is ultimately their responsibility to pay back the loan.

    Prosper is the right choice for Personal Loans for your Small Business

    Prosper makes the entire process of getting loans for your new business or existing business easy. If you are new to Prosper, simply join as a borrower and request a loan by creating a listing. You choose the amount.

    In your listing, we display a summary of your credit history, and you can write a personal note to our lenders telling them about yourself, your small business, and how you plan to use the loan. By personalizing your loan, you give lenders the opportunity to make more informed choices. At the same time, we keep your important information absolutely private.

    Why not  apply now. It’s easy to get loans, and posting a loan listing is absolutely free.

    Can I obtain a loan with bad credit?

    If you’re certain you have bad credit, Prosper may not be right for you at this time. Consider taking a few months to improve your credit rating, and then apply.

    Do you need perfect credit to obtain a loan through Prosper? Not at all. Few of us have perfect credit, and our lender community understands this. If you have average or above average credit, Prosper can be a terrific place to get low interest rate loans for you and your new business.

    Don’t believe us? See for yourself: Get rate now .

    There may be Prosper lenders out there who are specifically targeting start-ups that need new business loans. We want to help you reach your dreams.

    Does my credit score affect my loan?

    Yes. Most lenders will look at your credit history, and Prosper lenders are no exception. If you are sure you have bad credit, you may want to consider improving it before you apply. If you are not sure of your credit score, we can help you find out now. for free, with no obligation.

    The Prosper community does not require “perfect credit.” If you have an average to an above average credit rating, one way to expedite your loan funding is to ask another Prosper member (especially a lender) to endorse you. Don’t know any other Prosper members personally? Invite a friend to join .



    How To Use A Housing Loan Eligibility Calculator? #best #payday #loans


    #housing loan eligibility calculator
    #

    How To Use A Housing Loan Eligibility Calculator?

    Nov 4, 2015

    A housing loan eligibility calculator takes into account an individual’s monthly income earned, the monthly expenses along with the interest and tenure of the their choice to calculate the loan amount they are eligible for. Most financial institutions provide their customers with this calculator free of cost online. The reason why one must use this calculator is that it helps ensure one’s home loan application is approved by the financial institution.

    When you are applying for a home loan with a financial institution you need to understand what is taken into consideration when looking at one’s application. To be eligible for a home loan, the financial institution expects the individual to have a reasonable credit score and have a regular paying job. The housing loan eligibility calculator calculates the loan amount which an individual is eligible for. This amount is also taken into consideration by the financial institution when approving one’s loan application. In cases where the loan amount applied for is higher than the amount the individual is eligible for, their application may get rejected.

    It is for this reason why it is extremely important for an individual to use the housing loan eligibility calculator before they apply for the loan with a financial institution. The loan amount calculated with tell the individual how close or far they actually are for the loan amount of their choice. If you feel that the loan amount calculated by the calculator is lower than what you wish for, there are several steps you can take to increase it.

    Since the calculator takes into account the amount the individual spends on a monthly basis, the first thing one must do is reduce their expenditure. Any unnecessary expenditure one may incur on a monthly basis can be reduced to help increase the eligibility of the individual. This can help one reach closer to the loan amount of their choice. However, there is only a certain extent to which one can reduce their expenses. There are however, a number of ways in which one can improve their eligibility which does not include using the housing loan eligibility calculator. One can take steps to improve their credit score which will convince the financial institution to approve the home loan application.

    The housing loan eligibility calculator plays a crucial role in helping an individual get their home loan application approved. Every prospective borrower must use the calculator before sending in their home loan applications to ensure that they are eligible for the loan amount they have applied for.

    About the Author

    The author is a seasoned writer on finance topics and she articulates aspects that are important to people availing the home loan facility. She writes about a variety of topics covering the home loan documents, rates & the uses of home loan eligibility calculator that help to make the best decision.



    How to Use a Car Title as Collateral for a Personal Loan #harp #loan


    #collateral loans
    #

    Other People Are Reading

    How Title Loans Work

    Title loans are short-term arrangements, usually no more than 30 days. You hand over the title to your paid-off vehicle in exchange for cash. Some lenders give loans even when a car isn t quite paid off yet, as long as there s sufficient equity in the vehicle. The loan amount usually is no more than 50 percent of the car s value. When you pay off the loan, the lender gives you back your title. If you can t do this within 30 days, some lenders will let you roll the balance over into another 30-day loan, effectively creating a whole new loan along with additional interest and fees.

    Applying for the Loan

    In most cases, you won t have to endure a credit check or prove your income to get a title loan. However, you must complete an application, just as you would for a more conventional loan. Some lenders allow you to do this online. You ll eventually have to appear in person, however, so the lender typically provides you with the location of a nearby office. Take your vehicle and any required documentation. This usually includes photo ID, your vehicle title and proof of insurance. The lender might want to drive your car to make sure it s in sound condition and will probably photograph it. You may have to hand over a spare set of keys as well.

    The Disadvantages of Title Loans

    If this is all sounds pretty simple and like the answer to your prayers, pause and take a deep breath. Interest rates on these loans are typically very high — an annual percentage rate in the three-digit range, significantly more than most credit cards and other loans. Extra fees usually are involved, such as for required roadside service plans, processing costs and administrative fees.

    The most significant downside to a title loan is that if you default, the lender may repossess your vehicle. If it eventually sells your car for more than the loan amount, some states require that it return the difference to you, but this isn t true everywhere. You may have to agree to install a GPS or starter interrupt device on your car so the lender knows where it is and to prevent you from driving off to parts unknown if you default.

    How to Protect Yourself

    Under federal law, title loan lenders must give you a written contract, clearly stating what extra fees you re responsible for and the interest rate. The contract probably will state a monthly rate, not an APR, to avoid scaring you off, so do the math. If the monthly rate is 25 percent, this works out to an APR of about 300 percent. If you have an available credit card with some room on it, you might want to use that instead, or ask family or friends for assistance if you can t get a loan any other way. If you decide to go ahead, read the contract word for word and make sure you understand all its terms and implications. Ask the lender to explain anything that’s unclear and try to get the explanation in writing.



    Is It Illegal to Find an Alternative Use for a Loan? #business #loan


    #loan money
    #

    What Can I Use My Loan Money For?

    By Justin Pritchard. Banking/Loans Expert

    Justin Pritchard helps consumers navigate the world of banking.

    When you borrow money, you might wonder what you can spend the funds on. You might find that you ve got more money on your hands than you actually need (intentionally or by accident). The most brazen borrowers take a loan out without any desire to use the loan for its intended purpose.

    Others simply use the funds for daily living: paying bills. buying groceries, and so on.

    What s the Money For?

    Lenders often want to restrict how funds are used. Loan interest rates typically take into account the risk that the lender expects to take, and that depends in part on the purpose of the loan. Riskier loans have different terms than less-risky loans.

    For example, a mortgage is generally used to purchase a home — which the lender can take possession of and sell if you default on your payments.

    Likewise, student loans are presumably used for education. The government subsidizes some student-loan interest because an educated population is considered a good investment. Furthermore, banks are willing to offer attractive student loans because college-educated adults will be more likely to have the income needed for repayment.

    If your contract/agreement says that you must use the funds for a certain purpose, you re taking a risk by doing something you agreed not to do. If you fail to keep your end of the bargain, the lender may choose to end the agreement and demand that you return the money.

    Continue Reading Below

    Getting the money back quickly and without cost may be a challenge. For example, you may have to pay a penalty on early distribution from a CD, or you might not have the money available anywhere.

    Some loans can be used for whatever you want. Credit cards and signature loans give you access to cash, and all lenders care about is getting repaid.

    Playing With Fire

    Technically, using your loan money for ‘alternative’ purposes may not be illegal. However, there is a risk that your lender will take legal action against you (if they find out that you’ve used the money in a way that s different than you promised).

    Student loans can be especially troublesome. Those debts cannot be wiped out — even in bankruptcy, so they ll haunt you for life if you fall on hard times. If you use student loan money for something besides your education, you re taking a big risk.



    Personal Grants – Government Grants for Personal Use and Business Grants #best #student #loan #rates


    #government personal loans
    #

    Personal Grants and Loans From Government and Foundations – For A Wide Range Of Financial Situations!

    As long as you can meet the Foundations criteria, the money is yours to keep and never has to be paid back. These personal grants are non taxable interest free.

    In spite of the perception that people should not look to the government for help, the government is available to help! Not only for people in need, but is their for the vast majority of Americans that want to better their lives and improve their financial situation.

    Personal grant programs and government personal grants do not require credit checks, collateral, security deposits or co-signers, even if you have a bankruptcy or bad credit, you as a tax payer and U.S. citizen are entitled to apply for this money.

    Purchase your dream home or get money for home improvements, go to college, help with personal expenses and much more!

    We provide you with step by step instructions on how to write and even word your proposal. Also included with every order is a consultation with our grant writing expert.

    Learn how to file your online personal grants application now! Take advantage of this opportunity! This is your tax money!

    GET OUR FREE CD ON: FREE GRANT MONEY



    What Is Home Equity? What can you Use it For? #interest #only #loans


    #home equity loan
    #

    What is Home Equity?

    By Justin Pritchard. Banking/Loans Expert

    Justin Pritchard helps consumers navigate the world of banking.

    Home equity is your share of the value of your home. It’s what you truly own and have an interest in. When calculating your net worth and getting a loan, home equity is important to understand. It’s not always easy to use home equity, but it’s still an asset.

    An Example

    Assume you bought a house for $200,000, made a 20% down payment. and got a loan to cover the rest. In this example, your home equity interest is 20% of the home’s value: the home is worth $200,000 and you contributed $40,000 – or 20%. You own the home, but you really only own $40,000 worth of it.

    It might be easier to think about home equity in terms of what you owe instead of what you’ve contributed. Prices change over time. You can figure out how much home equity you have by subtracting any money you owe from the home’s value.

    The home is worth $200,000, but you owe $160,000. The loan balance is 80% of your home’s value, so the remaining 20% is your home equity.

    Now assume your home’s value doubles (unlikely, but it’ll keep the numbers simple). If it’s worth $400,000 and you still only owe $160,000, you have a 60% equity stake. Your loan balance hasn’t changed, but your home equity increased.

    Building Home Equity

    As you repay your home loan, your home equity generally increases. With each monthly payment, you pay a little bit of interest and you reduce your loan balance.

    Continue Reading Below

    Over time, more and more goes towards your loan balance – increasing your home equity interest at an increasing rate.

    As the previous example showed, you can also increase equity if the value of your home increases.

    What is Home Equity Used For?

    Equity is an asset, so it’s a part of your total net worth. You can spend it someday if you need to. You might use it to buy your next home, to fund your retirement, or to pay for a child s education. It’s a large and important asset, so choose wisely.

    When you get a second mortgage, you borrow against your home’s equity (second mortgages are also known as home equity loans ). It’s nice to have a large pool of money to draw from, but home equity loans can be dangerous. Your home serves as collateral for these loans. If you can’t repay, your lender can potentially foreclose and you d lose your home.

    In the 2008 mortgage crisis, some people found that they relied too heavily on home equity: as equity increased, borrowers withdrew as much of it as they could in the form of cash. Unfortunately, equity from price appreciation can evaporate just as easily as it materializes. It s risky to scrape out as much as you can from your home s value.



    Use Personal Loan to Cut Credit Card Debt? #consolidation #loans


    #credit card loans
    #

    Use Personal Loan to Cut Credit Card Debt?

    Dear Dr. Don,

    I have been considering taking out a personal loan and paying off some credit card debt, but I’m not sure if this is a good idea. Will this affect me when I go to buy a house or rent an apartment?

    More on this.

    Pay Off Card Charges Before Bill Arrives

    Financial Advice that is Popular. But Wrong

    Does it Make Sense to Refinance Business Credit Card Debt?

    Is Sharing Your Credit Card Ever OK?

    Have I Fallen Prey to Identity Theft?

    Taking out a personal loan doesn’t pay off your plastic. It just restructures the financing of that debt. You’d consider doing it if you can get some combination of the following financial outcomes: a lower interest rate on the personal loan than on the credit cards, a lower monthly payment or a longer loan term.

    As long as you make the minimum monthly payments on your cards, there’s no defined loan term on credit card debt. A personal loan will have a defined loan term, typically four to five years, so lengthening the loan term isn’t the reason to restructure the debt.

    A lower interest rate has the potential to reduce the total interest expense on the debt. A personal loan is typically an unsecured debt, just like a credit card is unsecured debt. Bankrate’s national average rate for fixed-rate cards is 13.81 percent; for variable-rate credit cards, it’s 14.52 percent. With a good credit history, you’re likely to get a lower interest rate on a personal loan than you have on your credit cards. Bankrate can help you compare rates.

    The longer the term and lower the rate, the lower the monthly payment. It’s common for personal loans to be short-term loans of four to five years, so you may find that a personal loan increases your monthly payment, even with a lower interest rate.

    Your loan payment can be calculated using the loan balance, interest rate and the loan term. Restructuring several credit card balances into one loan may reduce your monthly hit if the sum of all the minimum payments on the credit cards is more than the personal loan payment.

    Your question about the impact if you try to buy a home or rent an apartment comes down to your credit score, which would be checked by a mortgage lender or landlord. Consolidating your debt into a personal loan will have a limited impact on your credit score.

    On the plus side for your credit score, you’ll increase the types of credit you’re using and increase the available balances on your cards. On the negative side, you’ll have a recent credit inquiry — related to the loan — and you’ll increase the available balances on your cards.

    That’s right: Paying down the balances is both a positive and a negative for your credit score. The negative is in the potential for your total debt outstanding to increase if you start running up balances on your credit cards again. Still, you don’t want to close the credit card accounts and lose the length of account history on your credit report. You just want to keep the outstanding card balances low.

    If you can live within your means and the personal loan approach makes financial sense in your situation, then I don’t see a credit score issue if you restructure your debt with a personal loan.

    Get more news, money-saving tips and expert advice by signing up for a free Bankrate newsletter .

    Ask the adviser

    To ask a question of Dr. Don, go to the Ask the Experts page and select one of these topics: Financing a home, Saving and Investing or Money. Read more Dr. Don columns for additional personal finance advice.

    Bankrate’s content, including the guidance of its advice-and-expert columns and this website, is intended only to assist you with financial decisions. The content is broad in scope and does not consider your personal financial situation. Bankrate recommends that you seek the advice of advisers who are fully aware of your individual circumstances before making any final decisions or implementing any financial strategy. Please remember that your use of this website is governed by Bankrate’s Terms of Use .

    Copyright 2013, Bankrate Inc.



    USE Credit Union – Loans – Vehicle Loans #online #title #loans


    #used auto loans
    #

    Auto Loans

    No Payment For 90 Days Is Just The Beginning!

    They say it’s good to know someone in the car business. In this case, it’s your credit union! As a USE Credit Union member, you have access to some of the best resources in town — including our low rates and low monthly payments. Not to mention new car discounts available through the Costco Auto Program. Whether you re buying a new or pre-owned car, truck, or SUV, or would like to lower the car payment on your existing vehicle, we re standing by to help you save money right now.

    • Low competitive rates
    • Same low rates for 2009 and newer
    • $0 down plus up to 125% financing available 1
    • Flexible terms up to 72 months
    • Credit decisions in just minutes
    • Costco Auto Program with a $50 Costco Cash Card 2
    • No payment for up to 90 days 3
    • Refinance and lower your car payment 4
    • Optional Credit Protection 5 (makes your payment if you lose your job)

    All loans subject to credit approval. Rates, terms and conditions subject to change without notice. Rates are valid as of 5/28/15. 1.79% APR and reflects 100% financing and 60 monthly payments of $17.44 per $1,000 borrowed. 1.49% APR reflects 100% financing and 24 fixed monthly payments of $42.32 per $1,000 borrowed. Stated rate is for vehicles 2009 and newer. 1. Up to 125% plus Tax, Title, License, Warranty and GAP financing available based on creditworthiness and type of vehicle. (Warranty – $2500 maximum/GAP $795 maximum) 2. Offer requires that you purchase your vehicle through the USE/Costco Auto Program and finance it at USE Credit Union. Loan funding required and you must also complete a Costco Member Satisfaction Survey. USE is not affiliated with the Affinity Development Group or Costco and its affiliates. 3. Must qualify for payment deferral. Finance charges begin accruing as of the loan origination date. 4. Excludes existing USE auto loans. 5. Credit Protection is a debt cancellation product available through USE Credit Union.



    Hard Money Loans secured by Real Estate for Homes, Apartment, Mixed Use Properties in California. #student #loan #consolidation


    #hard money loan
    #

    Q: When are private investor / hard money loans used?

    A:The most common situations that a person will require a private investor / hard money loan is as follows: Recent Bankruptcy. Balloon payment on existing loan is due now. Cannot verify income, tax returns, bank statements, etc. Need emergency cash quickly. Odd or non-conforming types of properties, such as mixed use, multiple units, apartments, land, etc.

    Q: Why would a person invest in a hard money loan?

    A: Most private investors understand the real estate market, real estate loans and mortgages and are looking for a safe and secure investment with a return better than what they will receive from the bank. Since this types of mortgages are secured by a property with normally 30%- 50% equity, the investor is well protected and receives the benefit of the higher interest rate return.

    Q: Are most private investors / hard money lenders trying to foreclose on your home to get the property?

    A: No. Private investors / hard money lenders simply want a good return on their investment but they will protect themselves from losing the investment by using the equity in the property. This is a common misconception, private investors / hard money lenders just want the payments made on time but if the borrower is having difficulty they will insure that it will not be a long term problem.

    Q: Do I need to provide all my documentation regarding income, bills, etc?

    A: This is dependent from investor to investor but typically you will only need to provide minimum documentation to obtain the loan. Also these types of loans are a true no income qualifier loan because you do not need to sign a 4506 or 8821 form.

    Q: What if I am a home buyer with damaged or poor credit with a low FICO score?

    A: These types of loan are usually used by individuals with past, recent, or current credit issues to rebuild their credit and eventually refinance to a more traditional type loan. FICO scores are no reviewed or required for this type of loan. Get your free credit report here.

    Q: As a Mortgage Broker / Banker, can I obtain a private investor loan for my borrower and still receive a commission?

    A: Yes, in fact, most loans funded by private investors where originally originated and packaged by a mortgage broker or banker who earned a commission from a loan that they could not previously close with traditional wholesale lenders and investors.

    Thank you for visiting.

    Privacy Information



    How to Use TSP to Purchase Your First Home #interest #only #loan #calculator


    #tsp loan
    #

    How to Use TSP to Purchase Your First Home

    by Mark Kennan

    You’ll owe extra tax penalties if you take an early TSP distribution.

    TSP Loan

    Complete the TSP application, including the amount you want to borrow from the defined contribution retirement savings plan. Loans are limited to no more than $50,000. You may be able to apply online or by using the TSP-20 form. Do not send in documentation of your home purchase with the loan application.

    Trending in Your Area

    Decorating Bathroom Mirrors

    Decorating bathroom mirrors is something that you can.


  • How to Decorate Stairwells

    When decorating stairwells, one element that you can.


  • The Best Feng Shui Colors for a South-Facing.

    The best Feng Shui colors for a south-facing entrance.



  • Personal Grants – Government Grants for Personal Use and Business Grants #bad #credit


    #government personal loans
    #

    Personal Grants and Loans From Government and Foundations – For A Wide Range Of Financial Situations!

    As long as you can meet the Foundations criteria, the money is yours to keep and never has to be paid back. These personal grants are non taxable interest free.

    In spite of the perception that people should not look to the government for help, the government is available to help! Not only for people in need, but is their for the vast majority of Americans that want to better their lives and improve their financial situation.

    Personal grant programs and government personal grants do not require credit checks, collateral, security deposits or co-signers, even if you have a bankruptcy or bad credit, you as a tax payer and U.S. citizen are entitled to apply for this money.

    Purchase your dream home or get money for home improvements, go to college, help with personal expenses and much more!

    We provide you with step by step instructions on how to write and even word your proposal. Also included with every order is a consultation with our grant writing expert.

    Learn how to file your online personal grants application now! Take advantage of this opportunity! This is your tax money!

    GET OUR FREE CD ON: FREE GRANT MONEY



    USE Credit Union – Loans – Personal Loans #www.loans


    #instant personal loans
    #

    Personal Loans

    The Signature Loan Is Personal Again.

    Getting cash with just your signature has never gone out of style. That’s why we offer a line of personal loans you can use for any reason. Based on your signature and good credit, our personal loans are a fast, convenient way to borrow without collateral. Whether it’s money for an emergency, bill consolidation, medical bills, auto repairs, a family vacation, taxes or any reason, we’re here to help.

    • Get up to $30,000 on your good credit alone
    • Choose an installment loans and line of credit
    • No security or collateral required
    • Use the money for any personal reason

    Savings-Secured Loans:

    Manage Expenses Without Touching Your Savings

    If you need money for something important, but want to keep your savings intact, consider the merits of a cost-effective USE Savings-Secured Loan. First and foremost is the interest rate: It’s low! That’s because you’re using your own savings as collateral for the loan. Choosing to collateralize your loan in this manner allows us to offer you a lower interest rate for the life of your loan.

    • Borrow up to 100% of your USE Savings or Term Investment account at a low 3% APR over your dividend rate
    • Immediate funding you ll know if you qualify for the loan within hours, and usually have the funds the next business day
    • Your savings or term-investment account continues to earn interest
    • Simple application there’s less paperwork because your loan is secured
    • Fixed term, fixed rate you know exactly how much you ll pay each month, making it easy to budget
    • Terms up to 120 months

    Need Money Now?

    Let’s get started! To apply for a Personal or Savings-Secured Loan, simply apply online. stop by your nearest branch or call 866.USE.4.YOU for more information.

    All loans subject to credit approval. Rates, terms, and conditions subject to change without notice.

    Computer Loans

    USE Credit Union has teamed up with three university campus bookstores to help you keep up with technology and save money too! Our Computer Loan Purchase Program offers:

    • Up to $3,000 with no application fee
    • Fixed rates as low as 6.49% APR*
    • Up to 36 months to repay (no prepayment penalty)
    • Bundled purchasing on a variety of brands, including desktops, laptops, tablets, plus software and accessories
    • Discounts on select computers and equipment

    Visit the campus bookstore at these universities today!



    Use Personal Loan to Cut Credit Card Debt? #business #loans #for #bad #credit


    #credit card loans
    #

    Use Personal Loan to Cut Credit Card Debt?

    Dear Dr. Don,

    I have been considering taking out a personal loan and paying off some credit card debt, but I’m not sure if this is a good idea. Will this affect me when I go to buy a house or rent an apartment?

    More on this.

    Pay Off Card Charges Before Bill Arrives

    Financial Advice that is Popular. But Wrong

    Does it Make Sense to Refinance Business Credit Card Debt?

    Is Sharing Your Credit Card Ever OK?

    Have I Fallen Prey to Identity Theft?

    Taking out a personal loan doesn’t pay off your plastic. It just restructures the financing of that debt. You’d consider doing it if you can get some combination of the following financial outcomes: a lower interest rate on the personal loan than on the credit cards, a lower monthly payment or a longer loan term.

    As long as you make the minimum monthly payments on your cards, there’s no defined loan term on credit card debt. A personal loan will have a defined loan term, typically four to five years, so lengthening the loan term isn’t the reason to restructure the debt.

    A lower interest rate has the potential to reduce the total interest expense on the debt. A personal loan is typically an unsecured debt, just like a credit card is unsecured debt. Bankrate’s national average rate for fixed-rate cards is 13.81 percent; for variable-rate credit cards, it’s 14.52 percent. With a good credit history, you’re likely to get a lower interest rate on a personal loan than you have on your credit cards. Bankrate can help you compare rates.

    The longer the term and lower the rate, the lower the monthly payment. It’s common for personal loans to be short-term loans of four to five years, so you may find that a personal loan increases your monthly payment, even with a lower interest rate.

    Your loan payment can be calculated using the loan balance, interest rate and the loan term. Restructuring several credit card balances into one loan may reduce your monthly hit if the sum of all the minimum payments on the credit cards is more than the personal loan payment.

    Your question about the impact if you try to buy a home or rent an apartment comes down to your credit score, which would be checked by a mortgage lender or landlord. Consolidating your debt into a personal loan will have a limited impact on your credit score.

    On the plus side for your credit score, you’ll increase the types of credit you’re using and increase the available balances on your cards. On the negative side, you’ll have a recent credit inquiry — related to the loan — and you’ll increase the available balances on your cards.

    That’s right: Paying down the balances is both a positive and a negative for your credit score. The negative is in the potential for your total debt outstanding to increase if you start running up balances on your credit cards again. Still, you don’t want to close the credit card accounts and lose the length of account history on your credit report. You just want to keep the outstanding card balances low.

    If you can live within your means and the personal loan approach makes financial sense in your situation, then I don’t see a credit score issue if you restructure your debt with a personal loan.

    Get more news, money-saving tips and expert advice by signing up for a free Bankrate newsletter .

    Ask the adviser

    To ask a question of Dr. Don, go to the Ask the Experts page and select one of these topics: Financing a home, Saving and Investing or Money. Read more Dr. Don columns for additional personal finance advice.

    Bankrate’s content, including the guidance of its advice-and-expert columns and this website, is intended only to assist you with financial decisions. The content is broad in scope and does not consider your personal financial situation. Bankrate recommends that you seek the advice of advisers who are fully aware of your individual circumstances before making any final decisions or implementing any financial strategy. Please remember that your use of this website is governed by Bankrate’s Terms of Use .

    Copyright 2013, Bankrate Inc.



    Should You Use Credit Card Rewards to Pay Auto, Student Loans? #monthly #payment #calculator


    #credit card loan
    #

    Should You Use Credit Card Rewards to Pay Auto, Student Loans?

    There are currently several credit cards that allow you to use your cash-back rewards to pay your mortgage. These include the Wells Fargo Home Rebate card, and all of the Citi cards that earn ThankYou points. Additionally, the Upromise and Sallie Mae cards from Barclaycard US allow you to use cash back rewards to pay down student loans.  Now Wells Fargo is planning to introduce similar products that deliver cash-back rewards toward car or student loan payments.

    Is This Good for Cardholders?

    Wells Fargo has indicated that it is moving in this direction in order to encourage its customers to increase their credit card use. In addition, it hopes that these new products will appeal to consumers who have grown wary of taking on debt .

    Even if this strategy proves successful for Wells Fargo, will consumers be better off using a credit card that directs all rewards toward loan repayments?

    Here are a few things that cardholders should consider before committing to this strategy.

    Are you carrying a balance?

    As with any rewards card, those that pay down debt will have a higher interest rate than cards that offer no rewards. Furthermore, it makes little sense to pay down debts such as a mortgage or car loan with a relatively low rate, while carrying a balance on a credit card with a higher rate.

    See How Your Debt Profile Compares Get your FREE Credit Score & personalized Action Plan. See where you stand & learn ways to better manage your debt. FREE and updated every 30 days.

    Are you receiving a competitive rate of return?

    The Wells Fargo Home Rebate card returns a strong 3% rebate for purchases at gas stations, groceries and drug stores, but only for the first six months after opening an account. After that, all purchases receive only 1% cash back. In contrast, Capital One recently introduced its Quicksilver card that offers 1.5% cash back on all purchases.

    Is loan repayment the best use of your cash-back rewards?

    In most instances, consumers are right to avoid debt and repay their loans as quickly as possible. Nevertheless, there are times when it makes more sense to invest money. For example, many homeowners received extremely low interest rates in the past few years and can now earn higher rates of return on their investments than they are saving on interest payments. The fact that taxpayers can deduct interest from most home mortgages and some student loans further reduces the savings generated by early repayment. Furthermore, the Fidelity Rewards American Express card offers 2% cash back as payments towards qualifying investment accounts in their brokerage. This is double the rate of the Wells Fargo Home Rebate card.

    Are you disciplined enough to make additional loan payments?

    If you are able to find a cash-back card with a greater rate of return than a card that directly repays the loan, you can simply make loan payments using those funds. One way is to track your cash-back rewards each month and make an identical loan payment. Another is to estimate your annual rewards and set up a payment plan that represents your average month s rewards.

    It is nice to see banks using their creativity to offer innovative products designed to help cardholders reduce their debt, not increase it. But before cardholders jump on this bandwagon (or stagecoach ), they should consider all of the advantages and disadvantages of these products.

    Image: iStockphoto

    Sign up for our weekly newsletter.

    Get the latest tips & advice from our team of 50+ credit & money experts, delivered to you via email each week. Sign up now .

    Note: It’s important to remember that interest rates, fees and terms for credit cards, loans and other financial products frequently change. As a result, rates, fees and terms for credit cards, loans and other financial products cited in these articles may have changed since the date of publication. Please be sure to verify current rates, fees and terms with credit card issuers, banks or other financial institutions directly.

    Jason Steele has been writing about credit cards and personal finance since 2008, poring through the terms and conditions of credit card agreements to understand the minutiae of how these products work. His work has appeared on Yahoo, MSN, HuffingtonPost and other major news outlets. In his free time, Jason’s a commercial pilot. He graduated from the University of Delaware with a degree in History. More by Jason Steele

    Comments on articles and responses to those comments are not provided or commissioned by a bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by a bank advertiser. It is not a bank advertiser’s responsibility to ensure all posts and/or questions are answered.

    Please note that our comments are moderated, so it may take a little time before you see them on the page. Thanks for your patience.



    How to Use Excel Formulas to Calculate a Term-Loan Amortization Schedule #wonga #loans


    #calculate interest on loan
    #

    How to Use Excel Formulas to Calculate a Term-Loan Amortization Schedule

    Term loans use a different amortizing method than traditional amortizing loans. Here’s how to calculate amortization schedules for both term loans and traditional amortizing loans.

    Microsoft Excel MVP, 2005-2014

    How do I calculate cumulative principle and interest for term loans? I have scoured the web for a function that will perform this task, with no avail.

    — Lake M.

    This is an interesting question. It touches on standard amortizing loans, and it even involves a bright young student who grew up to become a well-known mathematician.

    To answer the question, I’ll use a simple example. Suppose you were to borrow $100,000 for five years at 6% interest, with monthly payments. Let’s see how standard amortizing loans and term loans would work with these facts.

    How Standard Amortizing Loans Work

    A standard amortizing loan has constant payments over its term. With this approach, a large percentage of your monthly payment is applied to interest in the early years of the loan. But in the later years, as the loan balance slowly declines, more and more of each month’s payment is applied to the principle.

    In Excel, you use the PMT function to calculate the periodic payment for a standard amortizing loan. It has the form:

    =PMT(rate, nper, pv)

    . where.

    rate. The periodic rate. With monthly payments, the rate would be:

    6%/12 = .5% in this example.

    nper. The number of periods. In this example, we have 60 monthly periods.

    pv. The present value, which is the original loan amount, or $100,000 in this example.

    That is, your formula would be: =PMT(0.005,60,100000).

    If you were to set up an amortization schedule in Excel, the first and last few periods of your loan would look like the figure shown here.

    Again, notice that the principle payment increases each period as the amount of the interest declines.

    Excel provides a number of worksheet functions for working with amortizing loans:

    PMT. Calculates the payment for a loan based on constant payments and a constant interest rate.

    FV. Returns the future value of an investment based on periodic, constant payments and a constant interest rate.

    IPMT. Returns the interest payment for a given period for an investment based on periodic, constant payments and a constant interest rate.

    NPER. Returns the number of periods for an investment based on periodic, constant payments and a constant interest rate.

    RATE. Returns the interest rate per period of an annuity.

    CUMIPMT. Returns the cumulative interest paid on a loan between start_period and end_period. (Analysis ToolPak)

    CUMPRINC. Returns the cumulative principle paid on a loan between start_period and end_period. (Analysis ToolPak)

    How Term Loans Work

    Term loans use a different technique. Each period, you pay the amount of interest due plus a fixed amount for principle reduction. As a consequence, your payments decrease over time.

    Here, for example, the amount of the principle paid each period is equal to $100,000 divided by 60, or $1,666.67.

    Also notice that the total payment decreases each month as the amount of interest decreases while the principle stays the same.

    Excel doesn’t provide worksheet functions to support term-loan calculations. Therefore, we must use spreadsheet formulas.

    Calculating Term Loan Values

    With one exception, it’s quite easy to calculate the values for a term loan. To illustrate, I’ll use the following abbreviations. In parentheses I show the values from the example above.

    • Loan. the amount of the loan (100,000).
    • IntRate. the periodic interest rate (.5% per month).
    • PrinPmt. the amount of the periodic principle payment (1,666.67 per month).
    • LoanPds. the total number of loan payments (60).
    • CalcPds. the number of loan payments that we choose to calculate from the beginning of a loan. In the above example, this number could range from 1 to 60.

    Using these abbreviations, here are the formulas for a term loan:

    Principle payment:

    = Loan / LoanPds

    Interest payment at time CalcPds:

    =IntRate*(Loan-(CalcPds-1)*PrinPmt).

    Cumulative principle paid at time CalcPds:

    =Pmt*CalcPds

    Loan balance at time CalcPds:

    =Loan-Pmt*CalcPds

    Cumulative interest paid at time CalcPds:

    =IntRate*(CalcPds*Loan – ((CalcPds-1)*((CalcPds-1)+1)/2)*PrinPmt)

    Until the final formula above, the term-loan calculations were quite easy. Let’s conclude this article by examining how this final formula was derived.

    Calculating Total Interest Paid for a Term Loan

    When you work with periodic cash flows, and you want to derive a general formula for this purpose, it often helps to show how each periodic amount is calculated. Then you look for a pattern.

    To illustrate, the amounts for the first three interest payments are:

    IntRate * (Loan – 0 * Pmt)

    IntRate * (Loan – 1 * Pmt)

    IntRate * (Loan – 2 * Pmt)

    To calculate the total of these three interest payments, we simply combine the terms, like this:

    = IntRate * (3 * Loan – (0 + 1 + 2) * Pmt)

    = .005 * (3 * 100,000 – 3 * 1,666.67)

    = 1,475

    You can check this calculation by adding up the interest amounts for the first three payments in the Term Loan Amortization table above.

    To create a general formula to calculate the cumulative interest rate, we first must find a way to calculate the sum of an arithmetic series like this:

    The story is that the mathematician Carl Gauss (1777 – 1855) derived the formula when he was a young student. His class was asked to add up the numbers 1 through 100. The other students laboriously added 1 + 2 + 3 and so on. But Gauss took a shortcut. He noticed that:

    • 1 + 100 = 101
    • 2 + 99 = 101
    • 3 + 98 = 101
    • and so on.

    This pattern happens 50 times, so the total of all 100 numbers must be 50 times 101, or 5050.

    After some more work, Gauss derived a general formula for the sum of any such series:

    n * (n + 1) / 2.

    That is, 100 * 101 / 2 = 5050.

    So, with the help of a young student, we can find the cumulative interest for a term loan. After the number of months specified by CalcPds, the total interest paid is:

    =IntRate*(CalcPds*Loan – ((CalcPds-1)*((CalcPds-1)+1)/2) * PrinPmt)



    How SMEs Can Use Property Loans to Lower Their Borrowing Costs #usda #home #loans


    #low interest rate personal loans
    #

    How SMEs Can Use Property Loans to Lower Their Borrowing Costs Propwise.sg Monday, 16 November, 2015

    Aktive Learning

    By Paul Ho (guest contributor)

    Singapore’s SMEs makes up 99% of all enterprises, employ 66% of the workforce and account for 48% of the GDP. SMEs are defined as having revenues of less than $100m and with a staff of less than 200.

    Singapore has narrowly averted a technical recession. But the PMI is below 50%, indicating a contraction in the manufacturing sector.

    Figure 1: Purchasing Manager’s Index (PMI), Singapore Institute of Purchasing and Materials Management (SIPMM)

    SMEs have limited access to loans during tough times

    A drop off in demand means that companies are hardly growing their top lines and may go into the red. This is especially true for SMEs with less than $10m in revenues.

    Figure 2: Singapore Quarterly GDP Growth rate (TradingEconomics, SingStats)

    Singapore’s corporate default rate of Corporations listed on the SGX is below 2%. SMEs likely have a higher default rate of at least 3 to 4%.

    Figure 3: Corporate NPL Ratio, Financial Stability Review 2014, MAS

    During the Global Financial Crisis in 2008, Singapore’s SMEs experienced a limited access to capital and funding. This led the government to enhance the various schemes that are in place to help SMEs retain access to credit. Most of these schemes involve the government risk-sharing with the banks on loans to SMEs.

    In short, this means that during tough times the banks cut back on SME lending exposure due to the potentially higher Non-Performing Loan risks. Hence funds will likely dry up during uncertain economic periods when SMEs need credit the most. Hence SMEs will be exposed to elevated funding disruption risks and increased cost of funding during recessionary periods, and need to take action now to secure funding.

    Discerning future interest rate trends by looking at the bond yield curve

    The bond yield curve gradient has become less steep, indicating slower growth. There is also higher mid and long term interest rate expectations, indicating inflation expectations or simply a higher interest rate environment. The 20 year Bond is currently at 2.9%.

    Figure 4: Singapore Bond Yield Curve End 2014 versus Nov 2015, Asian Development Bank

    Hierarchy of Borrowing Costs: Secured versus Unsecured Loans

    The impending weakness in the economy poses greater risks to SMEs than to large corporations.

    Secured lending refers to lending in which an asset is pledged. Secured lending presents less risk to the lender and hence they charge lower interest rates.

    Unsecured lending does not require pledged assets. Hence this presents greater risk to lenders and are more expensive. Small businesses usually have fewer assets to collateralize against and hence use secure loans less frequently. Unsecured Business Term Loan rates for SMEs are usually in the 10+% range, depending on loan size as well as tenure.

    The Micro Loan Program by Spring Singapore is also a good source of funding. However, not many companies qualify, and for those who qualify, they may not be able to obtain the maximum $100,000 loan. Interest costs start from 5.5% with up to a four year tenure.

    Problems faced by SMEs and their owners in obtaining credit

    Many SMEs may not have the right financing or salary structure. SME bosses tend to under-declare their income and instead declare dividends. Whilst this reduces their taxable income, with the new Total Debt Servicing Ratio (TDSR) rule, this also impedes many SME bosses from borrowing more to buy their homes.

    SMEs are suffering a margin squeeze. Faced with borrowing costs of around 10%, labour costs that are 5 to 10% of revenue, and other operating costs which could take up another 5 to 15% of revenue, these businesses need a gross margin in excess of 30% just to break even. Not many industries can offer gross margins in excess of 30%. Hence SMEs are especially sensitive to top line growth for those with 20+ to 40% gross margins.

    With market uncertainty, access to funds for SMEs could be even more restricted in the coming one to two years.

    How can SMEs overcome high cost of funding issues?

    SME bosses should start to realize that under-declaration of income impedes borrowing and start to rectify this situation to reflect their true income. While it is important to have a tax efficient salary structure using a combination of Salary, Director Fees and Dividends, it is worthwhile to review this to be eligible for adequate funding.

    SMEs, especially those whose directors who are currently in their late 30s and early 40s and who have bought their own residential homes, could be sitting on tied up equity in their properties. Residential home loan rates are around 2%. They could free up this capital by refinancing their homes and use the money to invest prudently in their own business. With this reduced cost of funding, the business owners could immediately save

    10% off borrowing costs.

    Case Study: SME owned by 2 Directors and 3 Shareholders

    Does it make sense to borrow against your home for a company in which you’re only one of the many directors?

    In this case I came across, the company had two directors and three shareholders. The two Directors owned 35% each of the business, while the rest of the shareholders held 10% each.

    They needed $500,000 of funds for business expansion.

    We advised the firm to structure a Director’s resolution to approve the company to request for a Shareholder Loan to the company at a 5% interest rate. The two major shareholders cum Directors held 70% of the shares, and hence were allotted $350,000 of the loan amount. Shareholders or Directors who did not wish to lend to the company at the approved 5% interest rate may give up their allotment. The unused allotment may be used by the other directors/shareholders equally.

    These two major shareholders then refinanced their residential property loan with a cash out (equity term loan) of $400,000 at 1.8% interest. They then lent their company $400,000 at a 5% interest, making a decent return on their loan to their own company. Another two shareholders took up their allotment and lent the company $100,000 at the same 5% interest.

    In this way, the company had access to cheaper capital, boosting its chances of survival and creating a fair debt offering for all directors and/or shareholders who wanted to participate. It’s similar to preferential bonds which only Directors and shareholders can participate in.

    SUMMARY

    SME owners should get their personal income structure right to optimize for both tax efficiency and borrowing capacity. They can then leverage on cheaper secured mortgages to free up equity from their house to lower their business borrowing costs by structuring a Director’s Loan to company.

    In order to lock in low rates from the residential property equity loan (cash out), it might be safer for SME owners to consider a three to five year fixed rate structure to hedge against rising interest rates.

    Investors with at least $300,000 of spare cash could also get in on the game to bridge the gap left behind by banks and lend to growing companies who can afford to pay 14 to 18% per annum in interest costs. But thorough risk assessment needs to be done to minimize default rates. Convertible loans can also be structured to give investors additional upside if there is a liquidity event (e.g. acquisition).

    By Paul Ho, holder of an MBA from a reputable university and editor of www.iCompareLoan.com. Singapore’s first Cloud-based Home Loan reporting platform used by Property agents, financial advisors as well as Mortgage brokers. Posted courtesy of www.Propwise.sg. a Singapore property blog dedicated to helping you understand the real estate market and make better decisions. Click here to get your free Property Beginner’s and Buyer’s Guide .



    Debt Consolidation Programs: When and How to use Them #business #loans #australia


    #consolidating debt
    #

    Debt Consolidation Programs

    By Justin Pritchard. Banking/Loans Expert

    Justin Pritchard helps consumers navigate the world of banking.

    Readers are always asking about debt consolidation programs. What are they and what do you need to know about them?

    Debt consolidation programs are usually just a big loan that pays off other smaller loans. They can be very beneficial to borrowers, but these programs also have their pitfalls.

    When to Use Debt Consolidation Programs

    Continue Reading Below

    You’ll only get one monthly statement and make one payment.

    Also, you’ll find that your monthly debt payments decrease if you use a debt consolidation program that stretches your payments out over a longer period of time. This means that you’ll pay out less each month and you can free up some cash.

    A tempting (and sometimes successful) strategy is to use a debt consolidation program to manage various high-rate revolving debts. As an example, you might have numerous credit card balances with high interest rates .

    Things to Remember About Debt Consolidation Programs

    Using debt consolidation programs can help you or hurt you. You should be very aware that all these programs do is shift your debt – a debt consolidation program does not eliminate your debt. You owe the money and will have to pay it back sooner or later.

    Continue Reading Below

    One pitfall of a debt consolidation program is that you may feel like you have less outstanding debt. For example, you’ll notice that your credit cards once again have generous amounts of available credit. If you use this credit you’ll only dig yourself into a deeper hole.

    You should also be aware that you may end up paying more total interest if you use a debt consolidation loan. If you stretch out your payments over a longer period of time, it is possible that your total interest cost will be higher. Of course, it may be worth it to you if you can more easily manage your cash flow today, and in some cases you ll pay a lot less in interest if your consolidation loan has a substantially lower interest rate .

    • See the effects of longer repayment or lower interest rates with our Loan Amortization Calculator

    Finally, remember what you’re risking by using one of these programs. Often, you’ll use a home equity loan or a home equity line of credit to consolidate your debt. Those loans are appealing because you can borrow a lot, and they may provide some tax benefits. But the consequences of falling off the payment schedule can include the loss of your home in some cases. Credit card companies, on the other hand, can’t take your home because you never pledged anything as collateral. However, if you pledge your home, as is required in a debt consolidation program with a second mortgage. then your house is fair game for a foreclosure .

    How to Find the Best Debt Consolidation Programs

    There are a variety of choices, and you should shop around to find one that fits your needs. If you need some ideas on where to start, try this plan:

    1. Local credit unions or banks that you already have a relationship with. These are reliable sources that are likely to give you a fair deal.
    2. Banks that you don’t already have a relationship with. They might offer you a good deal in order to win your business.
    3. Borrow at Person to Person lending sites
    4. Mailers offering debt consolidation programs. These lenders already want your business – they’ve mailed you an offer because something about you fits into their desired profile. But only work with a reputable institution that you know you can trust — some of this unsolicited junk mail can get you into a bad deal. If you ve never heard of them, watch out.
    5. An internet search for “debt consolidation”. Just be extra careful with anything you find. Search for reviews and scam alerts related to any company you might work with.

    In addition to shopping around, you can ensure that you get the best deal by managing your credit. Loans are hardest to get when you need them the most. Keep your credit in good shape. even when you don t think you ll need a loan, and your credit scores will be as high as possible if and when you need money.

    • How Credit Scores Work


    Consider When to Use Private Student Loans – US News #best #bank #loans


    #private loans
    #

    Private borrowing is riskier than using federal options but, in some cases, could cost less.

    There are a few often-cited steps to take when it comes to borrowing for college. First, maximize all other sources you have to pay for college. including grants and scholarships. before even thinking about student loans, which will ultimately cost you more than the dollar amount you borrow.

    Next, take as much as you can through federal loan programs, the most common lending vehicle used by students. Federal student loans include the Stafford, which comes with a low, fixed interest rate of 3.4 percent for undergraduates. To determine your eligibility for federal student loans, fill out the FAFSA and keep an eye out for loan awards in your financial aid packages.

    But what happens if you still don’t have enough money to pay for college? Take a step back to re-evaluate whether your college and major are the right choices for you—academically and financially. If so, consider your remaining options: the federal Parent PLUS loan and loans from private lenders.

    That is, I think, where this comparison is really key, says PK Parek, vice president of Discover Student Loans. Both the PLUS loan and private loan can cover up to 100 percent of that gap in cost.

    For eligible parents who are willing to take on debt for their student’s education, Parent PLUS loans carry a fixed 7.9 percent interest rate and have a 4 percent origination fee. But the PLUS loans require a greater buy-in on the part of a student’s parents, notes Joe Wilson, wealth management adviser at financial firm TIAA-CREF.

    One of the major differences is the fact that a private student loan is taken out by the student, and the obligation to repay is the student’s first, versus that PLUS loan, where, essentially, the parent is on the hook first, Wilson says. Even if the student agrees to repay, especially if they renege on that agreement, the parent is still on the hook.

    Conversely, students can get private loans on their own—though often only with a credit-worthy cosigner—and the loans may come with lower rates and fees. Options offered through Discover, for instance, come with fixed rates between 6.79 and 9.99 (depending on borrower and cosigner credit history) and have a 0 percent origination fee, Parek notes.

    Some lenders are really trying to point out in the current interest rate environment that, in many cases, private loans are actually cheaper, says Patrick Kandianis, cofounder of Simple Tuition, a company that helps borrowers evaluate their private student loan options. in addition to other services. You’re starting to hear more about the differences or the benefits of private borrowing in terms of the cost structure versus some of the federal options.

    Though more private lenders have begun to offer fixed rate loan options, the majority of private loans available still have variable rates, which may look attractive but can be risky. Posted private loan interest rates could be as low as the 3.2 percent offered through CitiBank, for example, but not every borrower will qualify for a rate that low. Plus, since it’s variable, there is no guarantee that your interest rate won’t spike before you’ve finished paying off your debt—ultimately costing you more.

    And private loans with either fixed or variable rates have riskier repayment structures than federal loan programs. No student loan can be discharged in bankruptcy, but federal loan borrowers may be eligible for flexible repayment plans, such as Income-Based Repayment. which calibrates monthly charges to eligible borrowers’ salaries, and Public Service Loan Forgiveness. which cancels any remaining debt for borrowers who have worked in the public sector for 10 years. Private loan borrowers, in comparison, do not automatically have the same protections or opportunities to cancel their debt.

    Still, some safeguards have been put in place for private student loan borrowers, and the Consumer Financial Protection Bureau has made recommendations for future student loan policy changes. Now, for instance, colleges have to certify that a student is borrowing a manageable amount of debt, even among loans from private lenders. There’s been a lot of work to try to make sure that people aren’t just crazy borrowing, Kandianis notes.



    Can I Use My Car As Collateral For A Loan? #instant #loans


    #collateral loans
    #

    Can I use my car as collateral for a loan?

    Dear Driving for Dollars,

    I need a loan. Is it possible to get a loan by borrowing against my car to get the money I need?

    Dear Shane,

    You are essentially describing the use of your car as collateral for a loan. To use an item you own as collateral, you must have equity in it. If you own your car outright, you could use it as collateral. If you have a car loan, you might have enough equity. You would need to owe less than its value.

    To find out, estimate your car’s value at one of the car pricing sites such as Edmunds.com, and compare it to the payoff amount of your car. If you have enough equity, you may be able to use your car as collateral to get the loan you want, though you should check with your lender to make sure the loan terms will allow it.

    Keep in mind that if you do use your car to secure a loan, the lender could end up repossessing your car if you default on the payments, which could leave you without transportation.

    Get more news, money-saving tips and expert advice by signing up for a free Bankrate newsletter .



    How to Choose and Use Financial Software – Personal Finance. #personal #installment #loans


    #personal finance
    #

    How to Choose and Use Financial Software

    Tips

    • Be sure to investigate the security of a site or program before entering your personal financial data.
    • If you choose to purchase any personal-finance software, search online for any coupon codes or discounts.
    • Tax programs are ideal if your tax return is relatively simple. Make sure the program you’re considering is current with the latest tax code.
    • Related How-Tos

      Feedback

      Hop in your car for a long drive and you probably start glancing at your speed, gas, miles and temperature gauges. Yet during that other long drive known as life, most of us turn a blind eye to our financial gauges—either out of fear or because we aren’t sure what to do about what we see.

      When installed on your computer, financial software functions like a dashboard for your money, tracking your transactions and giving you early warning when problems arise. Most programs track and display your budget, spending, banking, bills, savings, investments, retirement plans and debt levels—all in one convenient place.

      The more often you look at these numbers, the richer you’re likely to become. Studies show that people who get into the habit of monitoring their money wind up wealthier than those who don’t.

      Generally, financial software divides into two broad categories—money-management and tax-preparation programs. Among the best-known money management programs are Intuit s Quicken. Microsoft Money or iCash. Web-based money management programs include Mint. Wesabe and Geezeo. For tax preparation, Intuit s Turbo Tax and H R Block s software are the leading brands.

      Money-management software offers:

      • Budgeting — You set spending limits and manage your cash flow.

      • Banking — Pay bills electronically on time, print checks and reconcile account balances.

      • Planning — Monitor and pay down debt, estimate major life expenses, forecast retirement needs, and run calculations.

      • Investing — Get stock quotes and track your portfolios.

      • Reports — Print out summarizations and charts of your finances for review.

      • Taxes — Export financial data into tax-preparation software.

      Tax-prep software offers:

      • Planning — Get tax advice on retirement, estate plans, investing and small business.

      • Importing — Allows financial data to be transferred in from other software programs.

      • Forms — Access federal and state forms.

      • Reference — Latest IRS publications inform you of rules and regulations.

      • Deductions — Information on applicable itemized deductions.

      • Error checks — Reviews returns for miscalculations.

      • On line filing — Confirmation that e-filed tax returns have been received as well as status updates.

      Should You Buy It?

      You could track your finances for free using a pad and pen—or an Excel spreadsheet. But the tedium of doing so could result in mistakes and make you give up.

      Money-management software organizes your day-to-day financial life in a way that’s easy to grasp at a glance and automatically updates much of the data.

      Even if you use a certified financial planner (CFP) or financial adviser, these experts focus on the big picture, not your day-to-day money matters. So money management software is still key for tracking your financial life.

      If you employ a certified public accountant (CPA) for ongoing tax advice or a tax preparer for your returns, tax-prep software may be unnecessary. However, if you’re unsure whether software would be a less expensive alternative to your tax preparer, you can conduct a free trial of a tax-prep program (usually available on the maker s Web site) to see how your results compare with professional help before making the switch.

      Choosing a Program

      There are dozens of money-management and tax-prep software programs on the market. Some are downloads or discs that are installed on your computer. Others are web-based and house your data online. Take an online tour or download a free trial version before making a purchase.

      You want see that a program’s pages are logically designed, that the setup will work smoothly for you and that its features can handle your financial needs. Not all programs offer the same features, and some provide more bells and whistles than you may want or need, such as the ability to find loan rates and link to a PayPal account.

      To get the best deal on a money-management or tax-prep program, type the program’s name + “coupon” into Google and compare prices. Many sites offer e-coupon codes that are good at online retailers such as Amazon.com and YahooShopping.com .

      Money-management programs. These financial programs can be purchased online or in stores—or downloaded for a fee and then installed on your computer. They are ideal for anyone who wants to ensure privacy, since the information will be only on your computer.

      Just remember to back up your computer regularly to an external hard drive to ensure your data is protected should your computer be damaged or crash. Popular programs include:

      Free web-based money-management sites. These sites host your data online. You open a free account and type your financial data onto money-management screens in a secure, privacy-protected space. The sites make money through advertising and other marketing strategies.

      The good news is that your data is available from any computer by using your password. And if your computer fails, your data will be unaffected. These sites are ideal for those who can’t afford pricey programs or want to see whether free site-based help will suffice for their financial needs. The potential drawbacks: You get what you pay for, and many people may wonder just how safe their most data is sitting on someone else’s server. Popular sites include:



    Use our home loan calculators – Mortgage Choice #pay #day #loans


    #home loan calculator australia
    #

    Home loan calculators

    Your Loan to Value Ratio (LVR) is very important as it determines the amount a lender will loan to you.

    Calculate your monthly repayments on a reverse mortgage.

    Share this:

    Talk to a Mortgage Choice expert

    Win $50,000 competition

    Mortgage Choice Limited ACN 009 161 979. Australian Credit Licence 382869. Level 10, 100 Pacific Highway, North Sydney NSW 2060. Promo dates: 31/08/15 – 31/01/16. Draw 16:00 hours AEDT, 15/02/16 at Salmat Digital Pty Ltd, Level 2, 116 Miller Street, North Sydney NSW 2060. Winner notified on 16 February 2016 by email. NSW permit number: LTPS/15/06009, ACT permit number: ACT TP 15/06875, SA permit number: T15/1348.

    For full competition terms and conditions click here

    About Mortgage Choice

    Established in 1992 by brothers Rod and Peter Higgins, Mortgage Choice was founded with the aim to help Australians improve their financial situation by offering a choice of home loan providers, coupled with the expert advice of a mortgage professional.

    Since that time, we have grown and developed into a fully fledged financial services provider, and our founding principle remains very much at the heart of what we do.

    Over 20 years of industry experience has taught us that you want advice you can trust and understand, from experts who have your best interest at heart. We now have the ability to deliver this across various financial products, including home loans, financial planning, car loans, personal loans, commercial loans, asset finance, deposit bonds, as well as risk and general insurance.

    The information provided in this website is for general education purposes only and does not constitute specialist advice. It should not be relied upon for the purposes of entering into any legal or financial commitments. Specific investment advice should be obtained from a suitably qualified professional before adopting any investment strategy.

    *Note: the home loan with the lowest current interest rate is not necessarily the most suitable for your circumstances, you may not qualify for that particular product, and not all products are available in all states and territories.



    USE Credit Union – Loans – Personal Loans #get #out #of #debt


    #instant personal loans
    #

    Personal Loans

    The Signature Loan Is Personal Again.

    Getting cash with just your signature has never gone out of style. That’s why we offer a line of personal loans you can use for any reason. Based on your signature and good credit, our personal loans are a fast, convenient way to borrow without collateral. Whether it’s money for an emergency, bill consolidation, medical bills, auto repairs, a family vacation, taxes or any reason, we’re here to help.

    • Get up to $30,000 on your good credit alone
    • Choose an installment loans and line of credit
    • No security or collateral required
    • Use the money for any personal reason

    Savings-Secured Loans:

    Manage Expenses Without Touching Your Savings

    If you need money for something important, but want to keep your savings intact, consider the merits of a cost-effective USE Savings-Secured Loan. First and foremost is the interest rate: It’s low! That’s because you’re using your own savings as collateral for the loan. Choosing to collateralize your loan in this manner allows us to offer you a lower interest rate for the life of your loan.

    • Borrow up to 100% of your USE Savings or Term Investment account at a low 3% APR over your dividend rate
    • Immediate funding you ll know if you qualify for the loan within hours, and usually have the funds the next business day
    • Your savings or term-investment account continues to earn interest
    • Simple application there’s less paperwork because your loan is secured
    • Fixed term, fixed rate you know exactly how much you ll pay each month, making it easy to budget
    • Terms up to 120 months

    Need Money Now?

    Let’s get started! To apply for a Personal or Savings-Secured Loan, simply apply online. stop by your nearest branch or call 866.USE.4.YOU for more information.

    All loans subject to credit approval. Rates, terms, and conditions subject to change without notice.

    Computer Loans

    USE Credit Union has teamed up with three university campus bookstores to help you keep up with technology and save money too! Our Computer Loan Purchase Program offers:

    • Up to $3,000 with no application fee
    • Fixed rates as low as 6.49% APR*
    • Up to 36 months to repay (no prepayment penalty)
    • Bundled purchasing on a variety of brands, including desktops, laptops, tablets, plus software and accessories
    • Discounts on select computers and equipment

    Visit the campus bookstore at these universities today!



    USE Credit Union – Loans – Vehicle Loans #pink #slip #loans


    #used auto loans
    #

    Auto Loans

    No Payment For 90 Days Is Just The Beginning!

    They say it’s good to know someone in the car business. In this case, it’s your credit union! As a USE Credit Union member, you have access to some of the best resources in town — including our low rates and low monthly payments. Not to mention new car discounts available through the Costco Auto Program. Whether you re buying a new or pre-owned car, truck, or SUV, or would like to lower the car payment on your existing vehicle, we re standing by to help you save money right now.

    • Low competitive rates
    • Same low rates for 2009 and newer
    • $0 down plus up to 125% financing available 1
    • Flexible terms up to 72 months
    • Credit decisions in just minutes
    • Costco Auto Program with a $50 Costco Cash Card 2
    • No payment for up to 90 days 3
    • Refinance and lower your car payment 4
    • Optional Credit Protection 5 (makes your payment if you lose your job)

    All loans subject to credit approval. Rates, terms and conditions subject to change without notice. Rates are valid as of 5/28/15. 1.79% APR and reflects 100% financing and 60 monthly payments of $17.44 per $1,000 borrowed. 1.49% APR reflects 100% financing and 24 fixed monthly payments of $42.32 per $1,000 borrowed. Stated rate is for vehicles 2009 and newer. 1. Up to 125% plus Tax, Title, License, Warranty and GAP financing available based on creditworthiness and type of vehicle. (Warranty – $2500 maximum/GAP $795 maximum) 2. Offer requires that you purchase your vehicle through the USE/Costco Auto Program and finance it at USE Credit Union. Loan funding required and you must also complete a Costco Member Satisfaction Survey. USE is not affiliated with the Affinity Development Group or Costco and its affiliates. 3. Must qualify for payment deferral. Finance charges begin accruing as of the loan origination date. 4. Excludes existing USE auto loans. 5. Credit Protection is a debt cancellation product available through USE Credit Union.



    Should You Use Credit Card Rewards to Pay Auto, Student Loans? #car #loan #rates


    #credit card loan
    #

    Should You Use Credit Card Rewards to Pay Auto, Student Loans?

    There are currently several credit cards that allow you to use your cash-back rewards to pay your mortgage. These include the Wells Fargo Home Rebate card, and all of the Citi cards that earn ThankYou points. Additionally, the Upromise and Sallie Mae cards from Barclaycard US allow you to use cash back rewards to pay down student loans.  Now Wells Fargo is planning to introduce similar products that deliver cash-back rewards toward car or student loan payments.

    Is This Good for Cardholders?

    Wells Fargo has indicated that it is moving in this direction in order to encourage its customers to increase their credit card use. In addition, it hopes that these new products will appeal to consumers who have grown wary of taking on debt .

    Even if this strategy proves successful for Wells Fargo, will consumers be better off using a credit card that directs all rewards toward loan repayments?

    Here are a few things that cardholders should consider before committing to this strategy.

    Are you carrying a balance?

    As with any rewards card, those that pay down debt will have a higher interest rate than cards that offer no rewards. Furthermore, it makes little sense to pay down debts such as a mortgage or car loan with a relatively low rate, while carrying a balance on a credit card with a higher rate.

    See How Your Debt Profile Compares Get your FREE Credit Score & personalized Action Plan. See where you stand & learn ways to better manage your debt. FREE and updated every 30 days.

    Are you receiving a competitive rate of return?

    The Wells Fargo Home Rebate card returns a strong 3% rebate for purchases at gas stations, groceries and drug stores, but only for the first six months after opening an account. After that, all purchases receive only 1% cash back. In contrast, Capital One recently introduced its Quicksilver card that offers 1.5% cash back on all purchases.

    Is loan repayment the best use of your cash-back rewards?

    In most instances, consumers are right to avoid debt and repay their loans as quickly as possible. Nevertheless, there are times when it makes more sense to invest money. For example, many homeowners received extremely low interest rates in the past few years and can now earn higher rates of return on their investments than they are saving on interest payments. The fact that taxpayers can deduct interest from most home mortgages and some student loans further reduces the savings generated by early repayment. Furthermore, the Fidelity Rewards American Express card offers 2% cash back as payments towards qualifying investment accounts in their brokerage. This is double the rate of the Wells Fargo Home Rebate card.

    Are you disciplined enough to make additional loan payments?

    If you are able to find a cash-back card with a greater rate of return than a card that directly repays the loan, you can simply make loan payments using those funds. One way is to track your cash-back rewards each month and make an identical loan payment. Another is to estimate your annual rewards and set up a payment plan that represents your average month s rewards.

    It is nice to see banks using their creativity to offer innovative products designed to help cardholders reduce their debt, not increase it. But before cardholders jump on this bandwagon (or stagecoach ), they should consider all of the advantages and disadvantages of these products.

    Image: iStockphoto

    Sign up for our weekly newsletter.

    Get the latest tips & advice from our team of 50+ credit & money experts, delivered to you via email each week. Sign up now .

    Note: It’s important to remember that interest rates, fees and terms for credit cards, loans and other financial products frequently change. As a result, rates, fees and terms for credit cards, loans and other financial products cited in these articles may have changed since the date of publication. Please be sure to verify current rates, fees and terms with credit card issuers, banks or other financial institutions directly.

    Jason Steele has been writing about credit cards and personal finance since 2008, poring through the terms and conditions of credit card agreements to understand the minutiae of how these products work. His work has appeared on Yahoo, MSN, HuffingtonPost and other major news outlets. In his free time, Jason’s a commercial pilot. He graduated from the University of Delaware with a degree in History. More by Jason Steele

    Comments on articles and responses to those comments are not provided or commissioned by a bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by a bank advertiser. It is not a bank advertiser’s responsibility to ensure all posts and/or questions are answered.

    Please note that our comments are moderated, so it may take a little time before you see them on the page. Thanks for your patience.



    How SMEs Can Use Property Loans to Lower Their Borrowing Costs #203k #loan


    #low interest rate personal loans
    #

    How SMEs Can Use Property Loans to Lower Their Borrowing Costs Propwise.sg Monday, 16 November, 2015

    Aktive Learning

    By Paul Ho (guest contributor)

    Singapore’s SMEs makes up 99% of all enterprises, employ 66% of the workforce and account for 48% of the GDP. SMEs are defined as having revenues of less than $100m and with a staff of less than 200.

    Singapore has narrowly averted a technical recession. But the PMI is below 50%, indicating a contraction in the manufacturing sector.

    Figure 1: Purchasing Manager’s Index (PMI), Singapore Institute of Purchasing and Materials Management (SIPMM)

    SMEs have limited access to loans during tough times

    A drop off in demand means that companies are hardly growing their top lines and may go into the red. This is especially true for SMEs with less than $10m in revenues.

    Figure 2: Singapore Quarterly GDP Growth rate (TradingEconomics, SingStats)

    Singapore’s corporate default rate of Corporations listed on the SGX is below 2%. SMEs likely have a higher default rate of at least 3 to 4%.

    Figure 3: Corporate NPL Ratio, Financial Stability Review 2014, MAS

    During the Global Financial Crisis in 2008, Singapore’s SMEs experienced a limited access to capital and funding. This led the government to enhance the various schemes that are in place to help SMEs retain access to credit. Most of these schemes involve the government risk-sharing with the banks on loans to SMEs.

    In short, this means that during tough times the banks cut back on SME lending exposure due to the potentially higher Non-Performing Loan risks. Hence funds will likely dry up during uncertain economic periods when SMEs need credit the most. Hence SMEs will be exposed to elevated funding disruption risks and increased cost of funding during recessionary periods, and need to take action now to secure funding.

    Discerning future interest rate trends by looking at the bond yield curve

    The bond yield curve gradient has become less steep, indicating slower growth. There is also higher mid and long term interest rate expectations, indicating inflation expectations or simply a higher interest rate environment. The 20 year Bond is currently at 2.9%.

    Figure 4: Singapore Bond Yield Curve End 2014 versus Nov 2015, Asian Development Bank

    Hierarchy of Borrowing Costs: Secured versus Unsecured Loans

    The impending weakness in the economy poses greater risks to SMEs than to large corporations.

    Secured lending refers to lending in which an asset is pledged. Secured lending presents less risk to the lender and hence they charge lower interest rates.

    Unsecured lending does not require pledged assets. Hence this presents greater risk to lenders and are more expensive. Small businesses usually have fewer assets to collateralize against and hence use secure loans less frequently. Unsecured Business Term Loan rates for SMEs are usually in the 10+% range, depending on loan size as well as tenure.

    The Micro Loan Program by Spring Singapore is also a good source of funding. However, not many companies qualify, and for those who qualify, they may not be able to obtain the maximum $100,000 loan. Interest costs start from 5.5% with up to a four year tenure.

    Problems faced by SMEs and their owners in obtaining credit

    Many SMEs may not have the right financing or salary structure. SME bosses tend to under-declare their income and instead declare dividends. Whilst this reduces their taxable income, with the new Total Debt Servicing Ratio (TDSR) rule, this also impedes many SME bosses from borrowing more to buy their homes.

    SMEs are suffering a margin squeeze. Faced with borrowing costs of around 10%, labour costs that are 5 to 10% of revenue, and other operating costs which could take up another 5 to 15% of revenue, these businesses need a gross margin in excess of 30% just to break even. Not many industries can offer gross margins in excess of 30%. Hence SMEs are especially sensitive to top line growth for those with 20+ to 40% gross margins.

    With market uncertainty, access to funds for SMEs could be even more restricted in the coming one to two years.

    How can SMEs overcome high cost of funding issues?

    SME bosses should start to realize that under-declaration of income impedes borrowing and start to rectify this situation to reflect their true income. While it is important to have a tax efficient salary structure using a combination of Salary, Director Fees and Dividends, it is worthwhile to review this to be eligible for adequate funding.

    SMEs, especially those whose directors who are currently in their late 30s and early 40s and who have bought their own residential homes, could be sitting on tied up equity in their properties. Residential home loan rates are around 2%. They could free up this capital by refinancing their homes and use the money to invest prudently in their own business. With this reduced cost of funding, the business owners could immediately save

    10% off borrowing costs.

    Case Study: SME owned by 2 Directors and 3 Shareholders

    Does it make sense to borrow against your home for a company in which you’re only one of the many directors?

    In this case I came across, the company had two directors and three shareholders. The two Directors owned 35% each of the business, while the rest of the shareholders held 10% each.

    They needed $500,000 of funds for business expansion.

    We advised the firm to structure a Director’s resolution to approve the company to request for a Shareholder Loan to the company at a 5% interest rate. The two major shareholders cum Directors held 70% of the shares, and hence were allotted $350,000 of the loan amount. Shareholders or Directors who did not wish to lend to the company at the approved 5% interest rate may give up their allotment. The unused allotment may be used by the other directors/shareholders equally.

    These two major shareholders then refinanced their residential property loan with a cash out (equity term loan) of $400,000 at 1.8% interest. They then lent their company $400,000 at a 5% interest, making a decent return on their loan to their own company. Another two shareholders took up their allotment and lent the company $100,000 at the same 5% interest.

    In this way, the company had access to cheaper capital, boosting its chances of survival and creating a fair debt offering for all directors and/or shareholders who wanted to participate. It’s similar to preferential bonds which only Directors and shareholders can participate in.

    SUMMARY

    SME owners should get their personal income structure right to optimize for both tax efficiency and borrowing capacity. They can then leverage on cheaper secured mortgages to free up equity from their house to lower their business borrowing costs by structuring a Director’s Loan to company.

    In order to lock in low rates from the residential property equity loan (cash out), it might be safer for SME owners to consider a three to five year fixed rate structure to hedge against rising interest rates.

    Investors with at least $300,000 of spare cash could also get in on the game to bridge the gap left behind by banks and lend to growing companies who can afford to pay 14 to 18% per annum in interest costs. But thorough risk assessment needs to be done to minimize default rates. Convertible loans can also be structured to give investors additional upside if there is a liquidity event (e.g. acquisition).

    By Paul Ho, holder of an MBA from a reputable university and editor of www.iCompareLoan.com. Singapore’s first Cloud-based Home Loan reporting platform used by Property agents, financial advisors as well as Mortgage brokers. Posted courtesy of www.Propwise.sg. a Singapore property blog dedicated to helping you understand the real estate market and make better decisions. Click here to get your free Property Beginner’s and Buyer’s Guide .



    Can I Use My Car As Collateral For A Loan? #calculate #auto #loan


    #collateral loans
    #

    Can I use my car as collateral for a loan?

    Dear Driving for Dollars,

    I need a loan. Is it possible to get a loan by borrowing against my car to get the money I need?

    Dear Shane,

    You are essentially describing the use of your car as collateral for a loan. To use an item you own as collateral, you must have equity in it. If you own your car outright, you could use it as collateral. If you have a car loan, you might have enough equity. You would need to owe less than its value.

    To find out, estimate your car’s value at one of the car pricing sites such as Edmunds.com, and compare it to the payoff amount of your car. If you have enough equity, you may be able to use your car as collateral to get the loan you want, though you should check with your lender to make sure the loan terms will allow it.

    Keep in mind that if you do use your car to secure a loan, the lender could end up repossessing your car if you default on the payments, which could leave you without transportation.

    Get more news, money-saving tips and expert advice by signing up for a free Bankrate newsletter .



    What Is Home Equity? What can you Use it For?


    #home equity loan
    #

    What is Home Equity?

    By Justin Pritchard. Banking/Loans Expert

    Justin Pritchard helps consumers navigate the world of banking.

    Home equity is your share of the value of your home. It’s what you truly own and have an interest in. When calculating your net worth and getting a loan, home equity is important to understand. It’s not always easy to use home equity, but it’s still an asset.

    An Example

    Assume you bought a house for $200,000, made a 20% down payment. and got a loan to cover the rest. In this example, your home equity interest is 20% of the home’s value: the home is worth $200,000 and you contributed $40,000 – or 20%. You own the home, but you really only own $40,000 worth of it.

    It might be easier to think about home equity in terms of what you owe instead of what you’ve contributed. Prices change over time. You can figure out how much home equity you have by subtracting any money you owe from the home’s value.

    The home is worth $200,000, but you owe $160,000. The loan balance is 80% of your home’s value, so the remaining 20% is your home equity.

    Now assume your home’s value doubles (unlikely, but it’ll keep the numbers simple). If it’s worth $400,000 and you still only owe $160,000, you have a 60% equity stake. Your loan balance hasn’t changed, but your home equity increased.

    Building Home Equity

    As you repay your home loan, your home equity generally increases. With each monthly payment, you pay a little bit of interest and you reduce your loan balance.

    Continue Reading Below

    Over time, more and more goes towards your loan balance – increasing your home equity interest at an increasing rate.

    As the previous example showed, you can also increase equity if the value of your home increases.

    What is Home Equity Used For?

    Equity is an asset, so it’s a part of your total net worth. You can spend it someday if you need to. You might use it to buy your next home, to fund your retirement, or to pay for a child s education. It’s a large and important asset, so choose wisely.

    When you get a second mortgage, you borrow against your home’s equity (second mortgages are also known as home equity loans ). It’s nice to have a large pool of money to draw from, but home equity loans can be dangerous. Your home serves as collateral for these loans. If you can’t repay, your lender can potentially foreclose and you d lose your home.

    In the 2008 mortgage crisis, some people found that they relied too heavily on home equity: as equity increased, borrowers withdrew as much of it as they could in the form of cash. Unfortunately, equity from price appreciation can evaporate just as easily as it materializes. It s risky to scrape out as much as you can from your home s value.