Tag Archives: Loans

A Borrower’s Guide to Getting the Best Mortgage Rate

Couple signing a loan contract

The ability of a borrower to get the best interest rates on a mortgage doesn’t just depend on comparison shopping or his credit score. Lenders look at different factors when deciding if a consumer qualifies for a loan and what interest rate they should offer. Mortgage rates can vary by many percentage points based on which payments can burgeon by thousands over the lifespan of a loan.

Lenders always look at specific criteria to ensure that borrowers are well qualified for affordable interest rates.

Evaluation Criteria Used by Lenders

Credit Score

The current lending market is based on tier pricing, which means interest rates may depend on credit scores. It is important to have a score of 750+ to qualify for the best mortgage rate in Salt Lake City or elsewhere. If your credit ratings are stellar, you can get a good rate. The lowest score that a lender will consider is 620, with a down payment of at least 10%. People with poor credit scores can do a variety of things to improve their scores and qualify for better interest rates.

Stable Jobs

Lenders also look at a borrower’s work history. Being unemployed for a long period, as well declining income, won’t help an applicant’s cause. For those who are self-employed, getting a loan could be more difficult.

Income to Debt Ratio

There are two aspects to this ratio considered by lenders – the front end and the back end. The back end ratio takes all of the monthly debt payments into account and divides it by the gross income per month. The front end focuses on housing related costs. Lenders want the front end to be around 28% and the back end ratio to be about 36%. This is considered the ideal number, but lenders do offer a bit of leeway to borrowers based on their general history.

Down Payment Amount

Whether you are trying to get a loan in Salt Lake City or in Houston, the minimum down payment required by lenders is at least 20% of the purchase price of a home. Those who are able to pay 20% will get the best possible mortgage rate. Those who cannot need to shell out more toward the cost of a loan.

Once a borrower meets these criteria, the next step is to do comparison shopping. Many reliable websites provide information on mortgage tables. Shop around and get a loan that meets your needs.

Debt Consolidation through Personal Loans: An Easier Way of Handling Debt?

DebtIt’s every person’s fear — debts piling up uncontrollably. It’s often unavoidable, and there will come a time when you find yourself owing money to a lot of people and providers. With the high cost of living, coupled with increasing costs of essentials, this isn’t a farfetched idea for some people.

Juggling multiple debts is a nightmare, and many find it difficult to find a realistic solution. While it may be foolish to think that getting a personal loan can solve this dilemma, it isn’t unrealistic when there’s debt consolidation involved.

Personal Loans and Debt Consolidation

In New Zealand, personal loans are becoming one of the more popular loan types due to the lower rates and relative ease of applying. Personal loans can also be used for varying purposes.

As its name suggests, debt consolidation combines multiple debts into one single loan, allowing you to handle multiple debts and pay for them in one simpler payment plan. It makes budgeting easier because there’s just one loan to manage.

Debt consolidation is ideal if you have several high-interest loans or debts. The interest rates of personal loans used to pay for consolidated debts are relatively lower than when you pay each debt separately. The weekly or monthly payments are also significantly smaller, and can be stretched over a longer period, depending on your needs and financial requirements.

Debt Consolidation: A Way to Improve Your Credit Score

Applying for a loan is full of difficulties. People who have a poor payment history with previous service providers find it difficult to apply for loans since banks consider them high-risk borrowers.

If your credit score has been damaged by consistent late payments, getting a personal loan with debt consolidation is a simple and manageable way to rebuild your credit score again — so long as you keep up with your monthly payments. Having a good credit score means you pay monthly dues on time. Because the repayment for your personal loan is stretched over a long time and is significantly smaller, you are unknowingly improving your credit score.

Debt consolidation’s benefits are more than just putting all of your debts into one loan. Thanks to its longer repayment time frame and smaller monthly payments, you’re also rebuilding or improving your credit score.

Home Loan

Get Smart about Mortgages: Know Which One Best Suits You

Home LoanBecoming a home owner will bring pride and satisfaction to anyone, but there are many factors that need careful consideration, one of which is financing. Since most US citizens do not have the money to pay the entire worth of a property in one go, they need to obtain a mortgage loan.

The type of loan that will suit you best depends on a lot of things, so here’s a quick look at what your options are and when they will serve you best.

Conventional Loans

Conventional loans, offered as conforming or non-conforming mortgages, are ideal for borrowers who have attractive credit histories and maintain great FICO scores. Most borrowers who opt for this type of mortgage want to buy more expensive properties and can make the minimum required 20 percent down payment.

Consider this type of loan if you meet the qualifications, as it can save you money since most mortgage companies, such as Mortgage Waters, do not require borrowers to take out mortgage insurance.

FHA Loans

Federal Housing Administration loans best suit borrowers who have limited budget for a down payment. With this type of government-backed loan, you would only have to put a 3.5 per cent down payment on the home you want to purchase. Many home buyers opt for this type of mortgage because of the easier-to-meet requirements, plus the fact that applicants who have a not-so-great credit score are still qualified.

VA Loans

Veterans Affairs (VA) loans are a great option for those who have served in the military. Many programs even provide up to 100 percent financing, which means that a down payment is no longer necessary. As long as you have rendered at least 90 days of service during times of war or 181 days during peacetime, you can qualify for this loan. When you have served with the National Guard or Reserves, you should have at least six years to qualify for a VA loan.

Although your primary goal is to become a home owner as soon as possible, you should still tread carefully when making a selection from the options available. Consider what your future needs are, as well, as this will help you choose whether to go fixed or adjustable on your interest rate.

Soldier Benifits

Rewards for Your Loyalty and Service: Because Every Soldier Deserves Them

Soldier BenifitsPeople join the military for different reasons: passion to serve the country, desire to travel the world, or they simply want to bring honor to their family. Whatever the reason is, most of them tend to accept their duty over time. This is because of the great pride and benefits that come with it.

Here are some of the rewards of serving in the military:

Healthcare Benefits

No matter what accident you encounter or disease you acquire, the government will handle all your healthcare needs. Even your dental needs like wisdom tooth extraction will be included in your health plans. This applies even when you are not on duty. Moreover, the government has made efforts to revolutionize healthcare services for soldiers – whether you are in active duty or a veteran.

Military Loans and Discounts

Most businesses offer military discounts as part of their regular special offers. If you need extra cash to start a business, send your kid to school, or any other reason, you can get an armed forces military loan from banks, lenders, or insurance companies. The loan professionals of Direct Mortgage Loans explain that members of the National Guard, veterans, or those in active duty are eligible for military loans.

Guaranteed Paycheck and Free Rent

Your salary will regularly come every first and fifteenth of the month. If you are married or on certain pay grade, the government will also cover for your rent and give extra money for utility bills.

Travel the World

Joining the military will give you the opportunity to see places that you wouldn’t even think of visiting. You can be stationed in Europe and Asia in just a year, or move to another location the next year. You will experience many adventures in every destination, which will remain with you for the rest of your life.

Serving in the military is both a duty and a privilege. As long as the passion is burning in your heart, you will appreciate your life in the army and be proud of the effort you show for the country.