Boat insurance rates will go up and down and it happens to be based on a few factors of risk. You’ll want to make sure that you consider that boat insurance is much like car insurance. For those who have had bad experiences the price will be much higher, but for those who are good sailors you will have lower rates. You will also be able to get a discount if you take a class on how to operate a boat in a proper manner.
When it comes to having safety equipment you will need to think about how it will affect the boat insurance. Fire extinguishers, emergency equipment and other special safety features installed on the boat will help lower the rate of the insurance premium.
The age of the boat or the value of the boast will also impact the rate of insurance. For a newer boat, you will have a higher premium, but also the most expensive the boat is, the more expensive it will be to insure. You will also need to remember that the boat will depreciate each year and that too will have an affect on your boat insurance.
Also, you’ll find that it is a lot like car insurance and the risk of liability will also increase the cost of insurance. Previous tickets or boating accidents will directly affect the rate you pay for your insurance. Since, there is a presents of neglect and liability, you will find that if the owner was at fault because of drugs or alcohol. Then the premiums will be the highest.
Then to obtain the best insurance you will want to install some safety features and have the boat looked at. You will find that this is a tax write off too. You’ll also want to make sure that you follow all the laws and rules of the local and state. You will also find that there are tax breaks just as there are when it comes to operating a car.
For those who are looking for a new boat you’ll need to consider that there is a certain investment that you’ll need to have in order to keep your boat protected. You will find that new boats will cost as little as $10,000, but they can get very expensive and it can cost as much as $200,000 or more. You will want to keep in mind that that it is important that you don’t have to have the expensive boat, but you’ll want to also consider that the more money that you invest in your boat, the more you’ll need to invest in insurance.
Additionally, if the prospective boat buyer intends to finance the purchase, in almost every instance, the lender will require full coverage insurance. Truly, it makes sense to get some insurance coverage.
Although in many state laws do not require boat insurance, it is always wise to insure any property that requires such a substantial investment. There are only a few people who would consider not getting insurance for their home or car, and you don’t want to be one of those people, because you may end up losing a lot more than you think if something were to happen. .Keep in mind, you will want to keep yourself protected by having the coverage. Your family and loved ones that will be accompanying you on your boating trips will need to have the insurance just those just-in-case accidents.
You’ll need to think about the ways that you will be able to save a few dollars on the insurance, but you also want to make sure that you know you are covered for those just-in-case times. You can’t afford to lose more any more than necessary on your investment. You don’t want to end up losing more than what you can afford. If you don’t have any boating insurance, you will find that it can hard for you to get over the loss.
With boating insurance you will be able to keep things like accidents and personal injury out of your mind. If they do happen, you know that you’re covered and also you’ll feel safer when having guests on board. You will also want to think about things like natural disasters and theft. It can help you feel better when these unfortunate events happen. You will want to make sure that you think about the insurance and how you can use the insurance to keep the out-of-pocket expenses to a low.
When it comes to sailboats, yachts, or even fishing boats, you will want to consider that there are a lot of options. You will want to think about your individual boating needs and also think about ways that you may want to explore. It is something that you can do for fun and you’ll have plenty of pleasure in the sun and water. It doesn’t matter if you like to ski or even you are just a beginning sailor.
Just as boating enthusiasts differ in their boating preferences as well as in the way they use their vessels, boat insurance coverage options also differ, depending on the boat’s uses, it’s monetary value, and it’s importance to the owner.
You will find that there is a lot of options when it comes to insurance. You will want to think about just getting liability or full coverage. There are a lot of insurance options. Deciding on the right option, however, can be a tricky matter.
A boater who engages in speed boating, will most likely need a different type of coverage from the boater who enjoys pontooning, or the one who embarks only on brief fishing excursion, once or twice a summer.
There are some things that you’ll need to consider when it comes to boat insurance. You will want to keep in mind that there is a certain amount of money that you’ll need to invest in when it comes to keeping and operating the boat. You will find that there are many factors that will affect the amount of insurance that you need. You will find that if you have a lot of expensive equipment on board then you’ll need to carry more insurance. The less that you have invested in the boat the less insurance you will have to consider.
If your vessel is more than 10 years old your insurance carrier may require you to receive a Marine Survey, to certify that the boat is both safe and seaworthy. The Marine survey will also give your insurance carrier an idea of what the vessel is worth, according to fair market value, an important aspect in getting an accurate insurance quote.
A marine survey can benefit you in several ways. While you may contract the survey to be done because an insurance carrier or potential lender has required it, it may save you money on your insurance premium, in the long run. A thorough survey can also identify potential problems that you may not have been aware of, helping you to avoid an unwanted accident, or break down on the water.
Marine surveyors will generally inspect the hull and frame of your watercraft, as well as the engine and any other exposed areas. Surveyors can often identify problems, and offer suggestions on repairs or maintenance. Letting the boat owner know of potential risks and hazards allows for preventative measures to be taken, before a disaster occurs.
The cost of a marine survey varies depending on the extent of work to be done. Larger vessels obviously take longer to inspect, and therefore will be more expensive to survey than a smaller craft. The cost of the survey itself, however, is small in comparison to the risks a boat owner may take in not having one completed.
The actual number of piracy attacks that were reported worldwide in 1999 rose nearly 40% in just one year. What’s more those figures nearly tripled between 1991 and 1998, according to the ICC International Maritime Bureau in London (IMB).
In the year 2000 a report conducted by the International Marine Bureau in London, also showed that annual losses due to piracy totaled over $200 million dollars. Even more alarming is the increase in weapon usage by modern day pirates such as guns and knives. Internationally a significant number of deaths, as well as serious injuries, are attributed to piracy each year.
Modern pirates may not have wooden legs and eye patches. They also may not be waving the Jolly Roger from a top their sails. Instead these criminals often navigate vessels that do not appear out of the ordinary. They will generally board a cargo vessel before the captain realizes that they are thieves. Modern pirates may do one of three things: rob the crew/passengers aboard the vessel; rob the vessel of its goods and cargo; or hijack the entire vessel.
Travelers venturing into foreign waters run greater risks of experiencing hijacking, theft, and even assault from modern day “pirates.” Having the best insurance coverage for you and your vessel is a must. The policy should cover all goods, cash, cargo, and of course the vessel itself. Maintaining the highest level of insurance, will help ensure that, should you fall victim to such a crime, the majority of expenses and costs you experience can be recouped.
Consolidation Loans combine several student or parent loans into one bigger loan from a single lender, which is then used to pay off the balances on the other loans. It is very similar to refinancing a mortgage. Consolidation loans are available for most federal loans, including FFELP (Stafford, PLUS and SLS), FISL, Perkins, Health Professional Student Loans, NSL, HEAL, Guaranteed Student Loans and Direct loans. Some lenders offer private consolidation loans for private education loans as well.
A separate page provides a comparison chart of consolidation loan discounts.
Most FFELP lenders are no longer offering consolidation loans because these loans are no longer profitable. Students can still consolidate their loans with the US Department of Education's Federal Direct Loan Consolidation program at loanconsolidation.ed.gov even if their college does not participate in the Direct Loan Program.
Interest Rates
The interest rate on a consolidation loan is the weighted average of the interest rates on the loans being consolidated, rounded up to the nearest 1/8 of a percent and capped at 8.25%.
For example, suppose a student has just unsubsidized Stafford Loans originated on or after July 1, 2006. These loans have a fixed interest rate of 6.8%. When they are consolidated by themselves, the consolidation loan will have an interest rate of 6 and 7/8ths of a percent, or 6.875%. So the interest rate increases only slightly.
If the borrower has a mix of loans with different interest rates, the weighted average will be somewhere in between. For example, if the borrower has $5,000 of Perkins Loans (at 5.0%) and $10,000 of unsubsidized Stafford Loans (at 6.8%), the weighted average is
$5,000 * 5.0% + $10,000 * 6.8%
------------------------------ = 6.2%
$5,000 + $10,000
This weighted average, 6.2%, is then rounded up to the nearest 1/8th of a percent, yielding a consolidation loan interest rate of 6.25%.
Note that the weighted average does not fundamentally alter the underlying cost of the loan. It preserves the cost structure by including each interest rate to the extent that it applies to part of the overall loan balance. For example, the consolidation loan in the previous paragraph says that of the $15,000 consolidation loan balance, $5,000 will be at 5.0% and $10,000 at 6.8%, yielding an equivalent interest rate of 6.2%.
If you are consolidating loans with different interest rates, the weighted average interest rate will always be in between. Don't be fooled if someone tries to suggest that this will save you money by getting you a lower interest rate. The interest rate may be lower than the highest of your interest rates, but it is also higher than the lowest of your interest rates. More importantly, the amount of interest you pay over the lifetime of the loan will be about the same.
(For the mathematically inclined, there is a slight difference due to the different shapes of amortization curves at each interest rate. In the example given above on a 10 year term, $10,000 at 6.8% has a monthly payment of $115.08 and total interest paid of $3,809.66, $5,000 at 5.0% has a monthly payment of $53.03 and total interest paid of $1,364.03. If you add these, you obtain a total monthly payment of $168.11 and a total interest paid of $5,173.69.
Using the weighted average, $15,000 at 6.2% has a monthly payment of $168.04 and a total interest paid of $5,165.01. So using a weighted average yields a very small reduction in the monthly payment (in this case, 7 cents) and in the total interest paid ($8.68) due to a kind of triangle law. Of course, when you consolidate the interest rate is rounded up to the nearest 1/8th of a point, so $15,000 at 6.25% has monthly payments of $168.42 and total interest of $5,210.42, yielding a slight increase. So you pay a tiny bit of a premium for consolidation, due to the rounding up of the interest rate.
If you were deferring the interest on an unsubsidized Stafford Loan by capitalizing it, most lenders will add the capitalized interest to principal when you consolidate. (Lenders can capitalize interest at most quarterly, but most capitalize it once when the loans enter repayment or at other loan status changes.)
No Cost to Consolidate
Aside from a slight increase in the interest rate on the consolidation loan, there is no cost to consolidate your loans. There are no fees to consolidate.
Under no circumstances pay a fee in advance to get a federal education loan or consolidate your federal education loans. There are no fees to consolidate your loans. While other federal education loans, such as the Stafford and PLUS loans, may charge some fees, the fees are always deducted from the disbursement check. There is never an up front fee. If someone wants you to pay an up front fee, chances are that it is an example of an advance fee loan scam.
Who Can Consolidate
Both student and parent borrowers can consolidate their education loans. (Students and parents cannot combine their loans through consolidation, since only loans from the same borrower can be consolidated. But they can consolidate their loans separately.)
Married students are no longer able to consolidate their loans together. This provision was repealed effective July 1, 2006. When married students consolidated their loans together, each spouse became responsible for the full amount of the loan, and the loans could not be separated if the couple got divorced. To avoid such problems in the future, Congress decided to repeal this provision as part of the Higher Education Reconciliation Act of 2005.
Students can only consolidate their education loans during the grace period or after the loans enter repayment. (Loans that are in default but with satisfactory repayment arrangements may also be consolidated.) Students can no longer consolidate while they are still in school. (The early repayment status loophole and the ability of Direct Loan borrowers to consolidate during the in-school period was repealed as part of the Higher Education Reconciliation Act of 2005, effective July 1, 2006.)
Parents, however, can consolidate PLUS loans at any time.
You Can Consolidate with Any Lender
Students and parents can consolidate their loans with any lender, even if all of their loans are with a single lender. (The single holder rule was repealed on June 15, 2006, as part of the Emergency Supplemental Appropriations Act of 2006. Borrowers no longer need to exploit the single holder rule loopholes in order to consolidate with any lender.) Direct Loans can also be consolidated with any lender. This allows you to shop around for a lender that offers a lower rate or better discounts.
Most lenders require a minimum balance before they will consolidate your loans. For example, many lenders will only offer consolidation loans for borrowers with loan balances of at least $7,500. A few lenders will offer consolidation loans for balances of $5,000 or more, and the Federal Direct Consolidation Loan program has no minimum balance for consolidation loans. (Lenders may not discriminate against borrowers who seek consolidation loans on the basis of number/type of student loans, type/category of educational institution, the interest rate on the loans, or the type of repayment schedule sought by the borrower. Lenders are, however, able to discriminate on the basis of the amount of the loans being consolidated, so lenders can set a minimum balance on the loans.)
Which Loans Can be Consolidated?
Any federal education loan can be consolidated. You can even consolidate a single loan. There are, however, a few restrictions on consolidating a consolidation loan.
You can consolidate a consolidation loan only once. In order to reconsolidate an existing consolidation loan, you must add loans that were not previously consolidated to the consolidation loan. You can also consolidate two consolidation loans together. But you cannot consolidate a single consolidation loan by itself. These restrictions have been in effect since early 2006.
Note that when you reconsolidate a consolidation loan, it does not relock the rates on the consolidation loan. The consolidation loan is treated as a fixed rate loan within the weighted average interest rate formula used to calculate the interest rate on the new consolidation loan. Consolidation does not pierce the veil on previous consolidations.
The new restrictions on consolidating a consolidation loan limit your ability to use consolidation to switch lenders. Generally, you will consolidate your loans once, toward the end of the grace period or after the loans enter repayment, and then be locked into that lender for the lifetime of the loan. If you want to preserve your ability to use consolidation in the future to switch lenders, you should exclude one of your loans from the consolidation.
Repayment Plans
Consolidation loans provide access to several alternate repayment plans besides standard ten-year repayment. These include extended repayment, graduated repayment, income contingent repayment (Direct Loans only) and income sensitive repayment (FFEL only). If you do not specify the repayment terms, you will receive standard ten-year repayment.
Consolidation loans often reduce the size of the monthly payment by extending the term of the loan beyond the 10-year repayment plan that is standard with federal loans. Depending on the loan amount, the term of the loan can be extended from 12 to 30 years. The reduced monthly payment may make the loan easier to repay for some borrowers. However, by extending the term of a loan the total amount of interest paid over the lifetime of the loan is increased.
In certain circumstances (for example, when one or more of the loans was being repaid in less than 10 years because of minimum payment requirements), a consolidation loan may decrease the monthly payment without extending the overall loan term beyond 10 years. In effect, the shorter-term loan is being extended to 10 years. The total amount of interest paid will increase unless you continue to make the same monthly payment as before, in which case the total amount of interest paid will decrease.
You do not need to pick an alternate repayment plan. We recommend sticking with standard ten-year repayment, because it will save you money. The alternate repayment plans may have lower monthly payments, but this increases the term of the loan and the total interest paid over the lifetime of the loan. See our caveat about extended repayment below.
Repayment on a consolidation loan will begin within 60 days of disbursement of the loan, unless the borrower qualifies for an deferment or forbearance.
Federal education loans, including consolidation loans, do not have a prepayment penalty. So you can pay off all or part of your federal education loans without incurring a penalty. If you want to take advantage of this, be sure to include a letter with the extra payment indicating that it should be applied to reducing your principal. Otherwise, the lender may treat it as an advance payment of the next month's monthly payment.
Tools for Evaluating Consolidation Options
FinAid's Loan Consolidation Calculator can help you understand the tradeoffs of consolidating your loans. It compares the reduction in the monthly loan payment with the increase in the total interest paid over the lifetime of the loan. It also shows you the interest rate on your consolidation loan.
Despite the switch to fixed interest rates on Stafford and PLUS loans eliminating a key financial incentive to consolidate, there are still several reasons to consolidate your education loans. These include having a single monthly payment, access to alternate repayment plans, the PLUS loan interest rate loophole, and the ability to reset the 3-year clock on deferments and forbearances. But consolidation can cut short the grace period, although the grace period loophole can work around this problem. It is best to avoid consolidating Perkins loans, because you lose several valuable benefits. Beware of extending the term of your loan, as this can increase the total interest paid over the lifetime of the loan; you can stick with standard ten-year repayment.
Before consolidating, always evaluate the benefits provided by the current holder of your loans. The loan discounts offered by originating lenders tend to be superior to those offered by consolidating lenders, since consolidation loans have tighter margins. Also, if you received a fee waiver or rebate from the originating lender, you may have to repay that discount if you consolidate with another lender. It may be possible to get some of the benefits of alternate repayment plans without consolidating, such as extended/graduated repayment with a loan term of up to 25 years and a single monthly payment, if you have more than $30,000 in federal education loan debt accumulated since October 7, 1998 with the lender. (This is due to a little known provision of the Higher Education Act, in section 428(b)(9)(A)(iv), and the regulations at 34 CFR 682.209(a)(6)(ix).)
You can change the repayment schedule on your loan once per year. So consider starting off with standard ten-year repayment on your consolidation loan. You are not required to start off with extended repayment. If you find it difficult to afford the payments, you can always switch to extended repayment later.
If you are a homeowner in the UK you may be eligible to take out a homeowner loan. Secured loans are loans that are secured against your property, which is why they are only available to homeowners. With secured homeowner loans you can enjoy increased borrowing power depending on the level of equity in your home, as well as longer repayment periods, which can help to keep your repayments to a minimum.
There are a number of lenders that offer secured homeowner loans, with many operating online, including high street banks and building societies. It is therefore a simple process to actually browse and compare homeowner loans in order to find one that suits your needs and your pocket.
A number of factors will determine whether you are able to get a secured loan and also how much you can borrow. This includes your equity levels, your income, your financial and employment status, your credit rating, etc.
If you have poor credit you may still be eligible to take out a secured homeowner loan, as the secured nature of the loan means that the lender can afford to take a risk on those with bad credit. However, you may find that the interest rate that you pay is significantly higher than someone with good credit would pay. Again, it is important to compare different bad credit secured homeowner loans in order to find the best rate of interest for someone in your circumstances.
Before you commit to a secured loan you should give careful consideration to whether you can afford it, as there are pitfalls to consider. If you cannot keep up with repayments on your secured loan you could face losing your home, so do ensure that you are able to afford the repayments.
When looking for a suitable secured homeowner loan you should make sure that you compare the different loans on offer from a range of companies. The interest rates, terms and conditions, and repayment periods can vary from lender to lender, so you need to make sure that you take the time to compare what’s on offer before you make your decision. You can do this with ease and convenience using the Internet, where you can browse and compare from the comfort of your own home.
Alternatively, you may wish to use a broker in order to find the most suitable loan, and there are a number of good specialist brokers to choose from. This will save you the hassle of having to go through each lender’s website and make separate applications – instead you can just make one application, which the broker can then use to find you the most suitable and affordable loan for your needs.
Again, you can use the Internet to find a suitable broker, and you will find that these brokers have access to a wide range of secured lenders that may be able to offer you a good deal on your secured homeowner loan.
The variety of loans available on the market in the UK these days means that many of us should have no problems finding the right loan for our needs, although those with poor credit may face more difficulty. In the current financial climate getting a loan can prove a little more difficult because credit conditions have tightened as a result of the credit crunch, but if you do your research you should be able to find a choice of loans from a variety of lenders, enabling you to find the right one to suit your needs, circumstances, and budget.
Below you will find a description of some of the most popular loan types:
Secured loans are loans that are available to homeowners, and these loans are secured against the home. Secured loans are often available to those with bad credit as well as those with good credit, and in order to qualify for one of these loans you need to be a homeowner ideally with some level of equity in your property. Secured loans offer greater borrowing power depending on your equity levels, as well as longer repayment period enabling you to reduce your monthly outgoings. It is important to keep up with monthly repayments on a secured loan otherwise you could risk losing your home.
Unsecured loans are available to both homeowners and non-homeowners, but you will generally need good credit to get one of these loans. These loans are not secured against any asset, and are based on contract and trust. The borrowing levels are not as high as with secured loans, and repayment periods are shorter.
Consolidation loans are designed to reduce monthly outgoings and reduce the number of debts that borrowers have to deal with. These loans are available on a secured or an unsecured basis, and are used to pay off smaller, higher interest debts, leaving the borrower with just one lower interest loan to repay rather than a range of higher interest debts.
Payday loans are short term loans that are usually offered for a one month period. These loans do not usually involve a credit check, but are subject to proof of employment and income. These are short term loans offered to tide you over until payday, and are ideal for emergencies where you need to raise cash until payday comes around. By way of interest you will be charged a set amount per £100 borrowed, and borrowing levels are low – usually up to around £1000 subject to income and eligibility.
Car loans are loans designed to finance the purchase of a car, and these loans can often work out cheaper than taking finance from a dealership. Some lenders offer additional perks with car loans, such as free HPI checks and reductions on breakdown cover or insurance.
These are just a few of the different types of loans available these days. No matter which type of loan you decide to go for you should make sure that you compare the market in order to find the best deal and the most competitive rate of interest.
A home equity loan is a form of credit for which your home is pledged as collateral. Generally, home equity loans offer a fixed interest rate and a fixed monthly payment. A standard home equity loan (also called a second mortgage) is paid off over an extended period of time.
You can estimate your home equity by adding the balance of all the debts secured by your home, then subtracting the total from your home's value.
What are the primary advantages of a home equity loan?
The two major advantages of borrowing with a home equity loan are lower interest rates and potential tax savings: The interest rate you will pay on the average home equity loan is generally lower than the interest rate you will pay on the average credit card or any other type of non-secured debt.
For home equity loans, you can generally deduct the interest you pay. The interest you pay on credit cards and other types of personal loans is generally not tax-deductible. Consult your tax advisor about the deductibility of interest.
How can I use my home equity loan?
You can use a home equity loan for almost anything. Common uses include debt consolidation (paying off high-interest credit card debt), home improvements, purchasing or refinancing a home, purchasing land, paying for education expenses, college tuition and buying luxury items.
Can I pay off balances from other accounts?
Yes. You may use the proceeds of your new home equity loan or line of credit to pay off balances from other accounts, or we can process those payoffs on your behalf.
What is a debt consolidation loan?
A debt consolidation loan is a type of home equity loan that allows you to combine several debts into one loan. By making one lower monthly payment, you can more effectively manage your debt. The key to successfully reducing your debt is to discipline yourself from new spending. If you're consolidating credit card bills, don't use the credit cards after you get a debt consolidation loan, even if you've cleared your balances. You could be tempted to overspend, which would eliminate the benefits of consolidating your debt.
Do I have to live in the residence I'm using as collateral?
Yes, Chase Credit Policy requires the collateral property to be a primary residence.
How much can I borrow?
Depending on loan type, property type and other criteria, you may be able to borrow up to $500,000. The relationship between your loan amount and your home's value is called the "loan-to-value" ratio, or LTV. As LTVs increase, the cost of the loan in question usually increases as well.
How do I know if I qualify?
You must complete an application for us to determine if you qualify. It takes only 10 minutes to apply online and you’ll get a response in about 90 seconds. APPLY TODAY
Once you have applied, we will evaluate several criteria, which may include: -Credit history -Employment and income -Amount of the loan or line requested -A review of the assessed value of the property and the amount of any existing mortgage debt on that property
Can I be self-employed and qualify for a home equity loan?
Yes. Self-employed applicants can qualify provided they meet the approval criteria. Depending on your request, income documentation may be required.
Is there another way to borrow against my home's equity?
Yes. Cash-out refinancing is not a home equity loan but it does let you borrow against your home's equity. In cash-out refinancing, you refinance the existing debts secured by your home (i.e. your mortgage) with a new loan, but in addition, you also borrow new funds over and above the total of those existing debts. The difference between your new loan and the total of the old debts is a loan against your home's equity.
Can I refinance my existing loan account and pocket some additional cash?
Yes. A home equity loan or line of credit is a good way to refinance your existing mortgage loan, take some additional cash and make one easy monthly payment. Chase does not set aside "escrows" for property taxes or property insurance. If your current mortgage loan has an escrow feature and you refinance it with a home equity loan or line of credit, you will become responsible for the property taxes and insurance premiums.
How can I compare different loans and lines?
The APR or annual percentage rate, is an important factor to consider when shopping for a home equity loan because in most cases, it takes into account both interest and fees. The APR, which is expressed as a yearly rate, factors in the loan interest rate and all fees paid to obtain the loan. Generally, the lower the APR, the lower the cost of your loan. When comparing APRs between loans, make sure the terms and conditions of the loans are the same.
When comparing a home equity loan to a home equity line of credit, you should be aware that the APR for the home equity line of credit only takes into account the interest rate on the line of credit, and does not include any additional fees.
How much will my payment be and when is it due?
When you schedule your closing, you will have the opportunity to select the date that your monthly payments will be due. Factors including loan amount, interest rate and term are used to determine the payment amount.
As a convenience, monthly payments may be automatically deducted from your Chase checking account. Ask your Loan Officer for automatic payments and you may benefit from an interest rate reduction.
You may have heard a number of ads for refinancing on television, on radio and even on the Internet. Yet, you still might have questions about how the process actually works and whether it would be a good bet in your case. Consider this then, your primer on mortgage refinance made easy.
When Refinancing Is The Best Option To begin with, it might be helpful to discuss definition of terms. The act of home refinancing involves applying for a secured loan to pay off a loan that has already been secured with a piece of property or other assets. If your initial loan had a high interest rate, it only makes sense that you would be interested in a loan with a lower rate of interest.
The most common type of mortgage refinance comes in the form of a second home loan. In order to determine if such a loan is appropriate in your particular case, you first need to ascertain whether you'll be saving more on interest than you'll be paying out in refinancing fees. As an added bonus, you may find that you can obtain additional cash while decreasing the amount you need to spend on your mortgage payments. Home refinance loans can be an attractive option because it allows you to use the equity in your house to your best advantage.
Solving the Interest Rate Puzzle It's important for you to understand how rates on home purchases are determined. The rate you pay is customarily based upon the prevailing interest rate, along with other considerations such as the amount of your down payment and your personal credit rating. Interest rates can fluctuate, based upon the decisions of the Federal Reserve Board. When you refinance, you trade a higher interest rate for a lower rate and decrease your monthly payment in the process.
Cutting the Length of Your Loan It's also possible to reduce the length of your loan through refinancing. With a mortgage refinancing plan, you can change your term from a 30-year period to a ten or 15-year period. In the process, you can save a substantial amount of interest. If you keep your same monthly payment amount but obtain a lower interest rate, you will be paying more on the principal of the loan each month, allowing you to enhance the equity in your home.
Debt Consolidation You can also use your home to obtain debt consolidation in the form of a home equity loan. This enables you to combine your high-interest loans to create a single loan with lower interest and a manageable down payment. Your property acts as security for the loan. Until you pay off the home equity loan, the lender will have a lien on your home. With such a loan, you can be protected from creditors and avoid the problem of having to declare bankruptcy.
A Noteworthy Tax Advantage
One important thing to keep in mind about home equity loans is that the interest on such a debt consolidation loan may be tax deductible. Check with your tax accountant to see if your interest can be fully deducted. You may be pleasantly surprised at the answer.
Look for lower interest rates from credit card providers. Before making your selection, compare introductory APRs, introductory periods, regular APRs, annual fees (if any), if balance transfers are available, and the credit rating levels required (usually Good or Excellent).
Frequent flyer cards
Compare travel services offered by frequent flyer cards with regards to blackout dates or other restrictions, as well as points that may be redeemable for dining, entertainment, hotel, rental car, cruises, air travel, retail shopping and cash.
Gas rewards cards
Save at the pump with gas rewards. Look for discounts or cash back on gas and vehicle maintenance, drugstore and grocery shopping, dining, and cable services.
Cards for bad credit
Look for card providers that offer online support services, such as email and text reminders of upcoming payments due.
Prepaid cards
People who have bad credit or want to put a tight rein on their spending may consider the prepaid card. This card is similar to the debit card because you use actual available monies deposited in your account; but unlike credit or debit cards, the prepaid card has no overdraft protection. On the upside, prepaid cards usually have no fees—no late fees, no over-limit fees, no transaction fees, no NSF fees (for insufficient funds) because you can only be approved for available funds.
A prepaid card can be safer than cash, but make sure that the card is protected by fraud liability insurance. Also, see if it includes rewards programs, email and text alerts, bill pay and other online services. Usually no credit check or employment verification is required.
Applying for senior banking programs
Ask your banking representative about bank accounts and online services designed especially for people over 50 years of age. Also, ask about savings accounts with no or low minimum balance or monthly maintenance fees. In some cases, if you maintain accounts for both checking and savings, you might earn a higher interest rate on your balances as well.
Applying for online services
Once you set up your online account, you’ll enjoy the benefit of seeing your online bank statement at any time of day or night. Online services may include transferring balances from one account to the other, paying bills, financial “tools” and information resources. Depending on the institution, you may need to make a phone call and complete an application form to initiate your online services.
Getting online assistance
Have a question about your account? Check to see if your financial institution offers a 24/7, around-the-clock “live chat” on its website where you can hold an online discussion, in real time, with a service representative, or an internal email system where you can send a comment or inquiry with a response within 24 hours. In addition, your bank’s website probably offers downloadable application forms and other documents.
Accessing “financial tools”
Some offer special services like “online financial calculators” that you can use to analyze your personal finances to calculate savings goals for your retirement, determine auto loan payments, analyze investment returns, calculate credit card payoffs, assess debt consolidation, analyze mortgage payoff, determine your tax bill, and compare options for leasing vs. buying, etc.
Browsing for other financial resources
Some sites offer a whole “library” of resources, including links to other sites. Look for information to help your grandchildren with saving, budgeting, earning, borrowing and using checks. Look for information on home buying, selling, renting and improving your house. You might also find tips on identity theft, smart shopping, and government resources. This will help you reach the goals that you set for yourself as you try to enhance your financial life.
Being in debt is probably one of the worse things that we face in life. We can’t escape it, no matter how much we try. Debt is everywhere, and it seems as if we have more of it than ever due to rising gasoline prices and rising unemployment. The U.S. dollar has weakened, inflation is rising, there is a crisis in the mortgage sector, and it looks as if a recession is inevitable. With these conditions in our nation, is there any wonder that the average American family carries thousands of dollars in debt and is suffering from debt problems?
The prices of everything needed for, life as we are used to living it are at a higher rate than ever before, so many people have turned to using their credit cards when their pay checks just don’t stretch far enough to cover their needs and wants. Before they know it, they are in credit card debt over their heads as one card after another becomes maxed out. This starts a vicious circle of never ending debt as they try to make at least the minimum payment on each card while still trying to live on an income that just won’t pay for everything.
Once you get stuck in this cycle, even your most important bills like your mortgage and car payment are affected. You start getting late notices from your creditors. Your credit score begins to drop. You realize you are in trouble, and that this can’t continue with you losing all the material possessions you’ve managed to accumulate. You know that you need some sort of debt help – and fast!
The very best thing you can do when you find yourself owing many creditors and lacking the funds to pay them is to consolidate debts with a debt consolidation loan. With this type of loan, all of your debts are considered in order to come up with the amount needed to pay them off. Your loan is for this amount. Instead of making separate payments to 9 or 10 creditors each month, you will make one single loan payment. Consolidation loans can get harassing creditors off your back quickly and help to give you peace of mind again.
The monthly amount of a consolidation loan will be an amount you can handle easily. Loan professionals take your salary into consideration when coming up with a payment plan.
The interest rates on consolidation loans can be high, but in the long run, you are paying out less money when there are no credit card late fees to worry about. Plus, your credit score will began to improve once you have proven to the credit companies that your loan payments are made on time and your outstanding debts have been paid off. Consolidation loans are the solution you need to get yourself out of debt now!
You are here because you want to get a good deal on your car insurance , and shopping around is the best thing you can do.
However, there are other things you should be aware of that could reduce your car insurance premium, and that's why we've constructed a list of Top Tips for you. Read through the whole list, you may learn something that could dramatically reduce the cost of your car insurance.
Park smart - parking your car in a secure location such as a locked garage or a secure designated off road parking spot will potentially reduce your car insurance premiums.
Buy in bulk - many of the larger companies that offer car insurance also offer other forms of insurance like home and life insurance. You may receive a discount for buying multiple forms of insurance with the same company.
Be alarmed - Thatcham-approved alarms are recognised by all insurers and most will discount your premium if you have these fitted.
Pay up - insurers charge a high rate of interest, around 15% APR on average, to allow you to pay your premium in monthly installments. It is much cheaper to pay your premium in one lump sum.
Buy online - financial products on the Internet are generally cheaper than traditional methods such as by post or over the telephone. Car insurance is usually about 10% cheaper online.
Shop around - if you want a deal you've got to be prepared to look for it. Some companies only provide policies for a specific market niche e.g. Esure only accept application from drivers with more than 4 years no claims bonus for example, so if you fall into their category you can potentially make big savings.
Consider the insurance rating - some cars are deemed to be of a much higher risk than others. When you are buying a car, check out its insurance group rating as car insurance premiums vary greatly between insurance groups. The cost of a group 1 car will be a tiny fraction of the cost of insuring a group 15 car.
Improve your driving skills - many insurance companies will provide a discount for having passed an advanced driving qualification. Consult individual car insurance companies for their policy in this area, and visit http://www.iam.org.uk for more information.
Savings in numbers - if you have more than one car, you may be able to get a multi-car discount which allows a significant discount on all your policies if you insure multiple vehicles with them.
Go Third Party - if your car has a low replacement value, it's probably not worth going for fully comprehensive car insurance. If the car gets written off you would be able to afford to replace it, whereas if you don't write off the car you will make a considerable saving.
Negotiate your excess - you will be able to reduce the cost of your car insurance considerably by choosing the largest excess the insurance company offers.
Mind the add-ons - visual and mechanical changes to your vehicle may increase the insurance group.
If you make any changes to you must check you are fully insured before taking to the road. You are also likely to pay higher car insurance premiums if your car has been modified.
Think of the bonus - a full no-claims bonus can knock up to two-thirds off an car insurance premium.
If you suffer a minor accident try and avoid claiming on your insurance or next year the premiums may well increase, however you can avoid this by asking your insurer if you can pay a small additional premium to protect this bonus.
Young driver equals high premium - young drivers always have the highest car insurance premiums but these can be significantly reduced by buying a low value car that also has a low insurance group rating.
Declare low mileage - if you only drive a limited amount of miles a year, arrange a low mileage insurance policy. However be aware that aware if you drive over the agreed limit you may find yourself uninsured!
The cost of importing - your car may be cheaper bought from abroad but the insurance probably won't be! The parts can be more expensive and difficult to find, so take this into account unless you're buying a car fully catered for in the UK (Citroen, Renault, BMW etc).
The older you are, the lower the premiums - if you are that bit older it's worth shopping around the insurance companies that specialise in the mature driver market, you may find substantial savings are available.
Car Insurance, Cheap Car Insurance and Car Insurance Quotes All Online
