Reverse Mortgage Fixed Rate Lacking Punch

By Borko Panteleio

A prospective client called me a few days ago. We discussed his situation for fifteen minutes and I told him flat out the best option for him was an adjustable rate mortgage.

Now, I know the senior community's take on adjustable rate mortgages, so typically, when I come out and say, "an ARM is the right choice for you", I don't wait for a response. I simply go into my reasoning as soon as possible.

Many seniors have built up opinions which may be hard to shake. When one makes a grand statement, that might normally be seen as negative, one better quickly put some logic behind it.

The gentleman on the other end of the phone was having none of it and there wasn't a split second that went by before he put the kibosh on my explanation. He wanted a fixed rate and that was that.

Now I'm not exactly the kind of person willing to accept being squelched. I have a voice, my words make sense, and I was going to tell him where the bear makes in the buckwheat. Wrong! He shut me up again.

My would be customer refused to hear what I had to say, as if I was introducing a vampire into his home. Since you can't shut me up, perhaps you can read on and get a feel why the ARM is typically the better choice.

The reason is the adjustable rate mortgage is available as a line of credit. The fixed does not have this option.

Lenders qualify the senior to receive an available sum of cash equal to 50% to 75% of the home's value. Most only need a portion of this money. This makes the ARM and line of credit more viable.

The line of credit option gives the senior the right to draw out cash, use as needed, and leave the rest for later. At any time they can draw out more money.

What is most notable about this is the interest accrues against the borrower's equity only on money drawn out and used. While it's sitting in the line of credit it's not working against the borrower's equity.

Unlike the ARM, the fixed rate option allows only one draw of funds. So, the borrower better make it count. And interest starts accruing immediately on the entire sum.

If Mr. Fixed Rate above owned the home free and clear and was getting the reverse mortgage to supplement income, it would be silly to get a fixed rate mortgage. To do so means the borrower would have to pull out a large sum and plop it into a bank or CD awaiting its use.

The problem is his interest rate on the fixed rate would eat into his equity faster than the money in a bank or some other investment would grow (at least the investment I see today). The ARM in this case, ironically, is the better more conservative choice.

About the Author:

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Credit Repair Help - It's Not As Hard As You Think!

By Mark Alison

It's really hard to go and live in this world with bad credit. People everywhere are in debt and in need of help. What are you supposed to do when you want to make that big purchase and the loan gets denied?

Credit repair can be done, but not overnight. You must be patient and keep your spending in check. There are a few things that you can do to repair your damaged credit but you must be patient as you follow these steps.

First thing to do, must do is create a budget. This will allow you to know how much money each month you can spend on your debts. It's best if you document for one month your spending habits. You never know how much you spend eating out and buying fancy coffees.

First, get a credit report. The three major credit agencies are Equifax, Experian, and Trans Union. This will help to see what you owe and who you owe it to. There are plenty of online website that can help you with this.

You need to contact the creditors that you owe. This is so you can try and negotiate a payment plan. You can haggle with them about interest and monthly payments. Then when you get an agreement, have them send you the agreement in writing.

It's time to cut the cord, er cards. It may feel painful at first, but it soon will be liberating. When you get rid of your credit cards, be sure to pay off and close the accounts. Credit history is important for your FICO score. It's a good idea to keep two or three lines of credit opened up so you can keep your established credit history.

You must make all your payments on time and avoid bankruptcy. It's a good idea to join a credit union as well. They offer a better chance of giving you a consolidation loan if you want to go that route.

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Click Here To Start On Your Way To Credit Repair!

Why I Chose a Roth IRA Account

By Herbert Castillo

IRA actually stands for Individual Retirement Account. They come in several different types that follow different rules and cater to different people's needs. I have recently started contributing to a Roth IRA and would like to discuss why.

In 1997 the Roth IRA was invented to encourage American citizens to plan for retirement on their own rather than simply relying on their 401k from their employer or social security.When individuals plan for their retirement with their own savings and investments, it eases the strain on the social security system. This is why the government has made certain permissions for these types of accounts that benefit you if you use it for retirement planning. What are some of these permissions and how do they work?

First, the contributions to a Roth IRA are non-tax-deductible. This may seem inconvenient in the short term sense, but it actually benefits your retirement fund. This is because you are limited in the amount you are allowed to contribute annually. The 2008 maximum (for households with less than $100k annually) is $5000 for both a traditional IRA and a Roth IRA. Supposing you max out both, the $5000 in the regular IRA is really worth only about $4000 because it will have to be taxed later. But the $5000 in the Roth IRA is true. It was already taxed before contributing it because you didn't deduct it from your income. Cool right?

Once funds have been contributed to the Roth IRA, after five years you are permitted to withdraw any contributions made penalty and tax free. With a traditional IRA you are penalized for any funds withdrawals before age 59 1/2. And regardless of when you pull out the funds you will pay taxes on 100% of it.

This permission for early withdrawal after the five year seasoning period makes it a great source for an emergency fund that everyone needs. So you can save for retirement while simultaneously putting back funds for emergencies like a new roof, or a new car. The allowances for early withdrawal are relatively lax compared to a traditional IRA.

The traditional IRA allows for early withdrawals of funds of certain amounts for very specific reasons. For example you are allowed up to $10,000 of your fund at any time to be used in the purchase of a home. The home buyer must be the owner of the IRA, their spouse or one of their children. Plus the Buyer must not have owned a home in the prior 24 months. The rest of the allowances are pretty complicated like this one and very strict.

I have been contributing to a Roth IRA for this purpose because it fits my needs very well. But how do you know which IRA is right for you? Everyone's needs and long term goals are different. The best thing to do is to consult a financial institute that you trust with your future.

About the Author:

My name is Herbert Castillo and I am planning my retirement at age 21 with a Roth IRA Account I admonish all to plan for their future in their youth because it is the best possible time to do so.

Managing Your Debts for A better Life

By Bob Hobson

Debts are a common thing. Many people acquire a loan for something important. Mortgage loans are also ordinary, as they enable people to be able to purchase their dream houses.

If you have debts and are looking for the best solution for it, here are good tips to follow so you can manage that debt and continue living life as you do.

1. Take a careful look at your debts. Have a look through all of the billing statements you've received and the amount of money your creditors are asking for. If you see any incorrect information, be sure to dispute it right away. After this, figure out how much of your money needs to go to each creditor - include interest and other charges in this computation.

2. Come up with a plan. You need to decide how quickly you want to pay off your debts; then see if you may be able to pay them off a little quicker than this. The earlier you can pay off your debts, the cheaper it will be, since less interest payments will be assessed.

3. Draw up a monthly budget. Once you've figured out how much your monthly debt obligation is, the next task is to come up with a budget for your monthly expenditures. Make repaying your loans and other debts your number one priority after covering vital expenses like housing and utilities.

4. Keep your spending under control. If it turns out that your income is less than your monthly expenses, then see what purchases you can either reduce or eliminate entirely - remember; needs first, then wants.

5. Maximize your savings. If you have some money in the bank, try to determine how you can use it best to pay off your debts. Check which of your savings accounts is the lowest interest earner. Maybe you can use that to compensate a loan with a much higher rate of interest.

6. Seek out alternative sources of income. You can supplement your financial commitments by starting a home based business or getting a part time job. Apply for government funding. You will find these tips and solutions helpful.

These six tips can help you to slash your debts in short order. The key is to set your priorities; once you do that, you are certain to succeed in getting out of debt.

About the Author:

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The Only Remortgage Advice You Need

By Jeremy Stanley

There is a lot of pressure to remortgage your house (or other property that you own), and you might be wondering whether or not it's the best move. Once you do decide to remortgage, you are probably wondering what exactly you should and shouldn't do to make the whole process smooth and successful.

Should: Bargain shop. A mortgage involves moving your mortgage from your current bank to a new bank. Technically, it isn't a mortgage unless you change banks or mortgage companies. If you want to find a good deal for remortgaging, remember that you need to bargain shop for interest rates. This means that you are going to have to make appointments with several banks or lending companies and see which one has the best deals.

Should: Reevaluate your finances. Sometimes, a person remortgages their house thinking about all of the money that they are going to save, and it turns out that they aren't saving very much money at all. You are going to need to remember that it costs money to remortgage, and you might be better off putting the thousands of dollars in fees towards the principal of the loan in order to pay it off quicker. Those extra payments might just be more economical than remortgaging. Don't just think about how remortgaging will help you now, think about what it will do for the rest of the life of the mortgage.

Shouldn't: Don't do what your neighbor does. If your neighbor recently remortgaged his house, it doesn't mean that it is time to do yours too. Just because it was a smart move for them, doesn't mean that you should do the same thing without doing a lot of research and making an independent decision.

Shouldn't: Another thing you shouldn't do is to fall for any gimmicks. Just because a mortgage company says that they will give you a certain rate, doesn't mean that the offer is going to last forever, so you want to make sure to read the fine print. Anything that is too good to be true probably is too good to be true.

Shouldn't: Don't make rash decisions. Remortgaging doesn't have to be done today; it can be done tomorrow, in three months, three years or whenever you want to. If a bank offers you a special deal for a limited time only you should be certain that remortgaging is what you want to do first, even if it means that you might lose the deal. You want to be certain about your decision because remortgaging takes a lot of time and effort on your part and you want to be satisfied with your decision for the remainder of the mortgage term.

There are things that you should and shouldn't do when taking the leap and remortgaging your home. The most important advice is to make sure that you understand what you are doing and how it will affect the future of your mortgage. Remortgaging is going to be an individual thing, so make sure that you look at your situation only.

About the Author:

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Reasons to Take a Free Tax Course

By Paul Kepplinger

If you want to take a free tax course, you can enroll in one quite easily. A tax course is very useful, not only for your own tax return, but also for any job opportunities that you might find. Most people, though, think that tax as a subject is too complicated and boring to learn.

Some people take a free tax course solely because they want to be able to prepare their tax return. They can save money that they would have to spend on a tax preparer if they knew what to do with their own tax return. After all, if they make a mistake, the IRS might have a problem with their return and they do not want that.

There are many tax courses online but a free tax course is more rare. Sometimes, you can enroll for a tax course for free but after the course, you will have to do something in return for taking the course for free. Many tax preparation services offer free tax classes in order to recruit more tax preparers.

When taking a free tax course, you can take an online tax course which is the most popular or you can take a class that you actually have to attend. There are many evening classes to suit people's schedules. You can pick the classes that you can make. If you find out later that you cannot make that time slot any more, you can usually change to a different class.

When taking a free tax course, you will still need books. Fortunately, most of the time, the books are free especially if you are taking a free tax course by companies that are trying to recruit you. However, other times, you will need to pay for the books which can get expensive. You can also find ex-students to borrow books from or buy from for cheap.

A free tax course can be short or long depending on what you want to learn. Some of the tax courses are very comprehensive while others are less comprehensive. A long course is usually more involves and you will learn a lot more about tax laws which you might not want to or need to. You can pick and choose what you want to learn.

If you can take the whole free tax course, you should try to. However, if you do not have time or feel that the whole course is too difficult for you, it is best to choose what you think you can accomplish. Some people take just a few modules of the free tax course while others take all. You can take whatever you can handle and come back to take more when you are ready.

Enrolling in a free tax course is the first step towards understanding what you can do on your tax return. You will be able to confidently claim your tax deductions and tax credits and not have to worry about what the IRS is going to think. There are also job opportunities that will open up after the free tax course that you take.

About the Author:

If you've been considering taking a free tax course at a local tax-preparation business or night school? Visit us at the Free Tax Course Organization website to learn about your training in advance and even receive free coursework and assistance!

Do The Best Credit Repair Services Improve Your Credit Score?

By Leona Allen

The best credit repair services set realistic expectations, while taking much of the drudgery out of fixing your credit score. While none of them can perform magic, the best credit repair services can help improve your credit score.

There are hundreds of credit repair services advertising today, but the Federal Trade Commission considers most of them to be scams. Companies that claim they can help you erase bad credit, or offer guarantees to raise your credit score, are probably scams.

According to the FTC, it is not possible to legally remove accurate and timely negative information from a credit report. Suggesting that you dispute all negative entries on your credit report, for instance, is illegal.

The best credit repair services won't ask you to pay in order to get your credit reports. Under federal law, anyone can get their credit report from each of the three credit-reporting agencies (TransUnion, Experian, and Equifax) once every twelve months for free.

You can do a lot of what these companies do yourself, however for those who aren't aware of all their options, it can be very helpful. You might be able to lower the fees a company charges by doing some of the "work" yourself, or you can opt to do everything yourself.

Besides credit repair services, there are companies called "debt consolidators". These debt consolidators won't directly fix your credit, but instead they work with you to help bring your outstanding debt under control - a big step towards long-term credit-worthiness.

Debt consolidators do this by contacting your creditors on your behalf. They will negotiate a 'settlement' agreement, usually just a fraction of the actual amount owed. The debt consolidator will combine these settlements into a single amount. They will give you an amount within your budget to send them each month, and in turn they send a portion to each creditor.

The best credit repair services can only help those who want to help themselves. They aren't a "bailout" that erases bad debt like bankruptcy filing, however they can help set you on the road to improving your credit score, and in turn your financial future.

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Personal Finance Planning: Why You Must Put Money In The Bank

By Jenni Snook

One can significantly reduce their expenses by simply changing some habits and using personal finance planning. However, it's vital that your bank balance also starts accumulating money. There are many people that find saving money very difficult. This happens because they cannot control themselves or because they have no idea where their money is ending up. If you are looking for some tips to really improve your bank balance and in the process give you a sense of financial security, then this article will provide it for you.

Many of us, when we get paid, we have our salaries already spent. What tends to occur is that people spend too much the previous week, especially when they buy something they just couldn't live without.

A great money saving tip is to take a small, comfortable amount of money out of your account and set it aside somewhere out off site. Don't forget where you are keeping this stored away, as you may need to access it at some point in time, but by keeping it stored away from you, it's doesn't stay on your mind.

If this tip is to work well, then you should only take tiny amounts of money. It wouldn't be logical to take more than you should, given that you will spend it at some point in the future. You may not realize it, but even putting away 10 dollars a week, adds up to 520 dollars over a whole year.

Another great idea would be to find out where you can find savings accounts that offer relatively high interest rates. Many banks have these and pay up to 12% interest. Nevertheless, it's important that you completely comprehend the terms and conditions that associated with such an account.

What tends to happen is that you have to leave the money in the account for a minimum amount of time, which could from 1 to 2 years, if you want to qualify for the high interest rate. In order for this to work, you must only save money that you really afford to live without for such a period of time.

You may also have to make minimum monthly deposits to receive the high interest. Make sure you are aware of all terms and conditions or this money saving tip can quickly become a false economy.

It may not seem worth it to save tiny amounts here and there. Keep in mind that these tiny amounts will result in something significant. The good news is that if you follow the personal finance planning tips in this article loyally, then you will end up with a significant amount of money in your bank account.

About the Author:

Jenni Snook is the chief reporter of http://www.HealthyWealthySoul.com, a website dedicated to providing individuals recommendations and tools on personal finance planning to attain both financial and spiritual happiness in their lives.

Sub Prime Credit Card

By Dan Moskel

A sub prime card was designed for those with a low credit score. It was created to give people a second chance with their credit history.

Used responsibly these cards will create a positive payment history and improve your ratio of available credit to debt. Frequently these cards are used to repair a damaged score.

These two factors are very important when your score is being calculated. If these two factors are good then you can create a good credit score even with negative items on your credit report.

These cards do report monthly to all three major bureaus. Your APR will by approximately 19% and you will have some fees. Unfortunately this is the cost of your prior mistakes with credit, however this can be the last time you have to pay extra for your damaged credit.

Most of these cards come with a $300 credit limit. However some cards such as the Tribute MasterCard will also approve individuals for a $70 credit limit and many will offer periodic limit increases.

A sub prime credit card is superior to a secured card when it comes to credit reporting. With a secured card it will report to the bureaus as a secured account and will not help as much as an unsecured account.

It is still wise to remove negative items from your report. However it has been discovered that once a negative item ages four years it will have much less impact on your score.

For you to get the most out of your card you should strive to keep the monthly balance at 25% of your credit limit. This is because it shows the bureaus that you are using your card responsibly and that you do in fact use your card.

You can still get approval for a sub prime card even with; charge offs, collections, judgments, and even a bankruptcy. However each card has different approval requirements. Many of them will give you an instant decision upon submission of your application.

In sum if you have made mistakes in the past with your credit and want a second chance we suggest a sub prime card. It can improve your ratio of available credit to debt and build a positive payment history.

About the Author:

For more about bad credit credit cards or for a review of the prepaid Rush Card visit us.

Guaranteed High Risk Personal Loans

By Dave Davis

Do you think your credit is too bad to ever be able to borrow money again? Perhaps you think there aren't any options for you to receive a loan because your credit history is poor. Unfortunately, having bad credit doesn't make you immune from unexpected expenses such as medical bills or broken appliances.

There is an option for people in this kind of situation. Guaranteed high risk personal loans are loans that are issued for whatever your personal needs are, but you don't have to have good credit to qualify for one.

Sometimes referred to as payday loans, the loans offer you money in advance of your paycheck to cover expenses. They are generally short-term loans so you will probably be expected to pay back the loan on your next pay day. For this reason, you'll want to be sure not to borrow more money than you'll get in your next paycheck so you'll be sure to be able to repay the loan on time.

Because you are considered to be a high risk to the lender, the interest rate on the loan will probably be quite high. This is another reason to keep the loan a short-term loan so you don't accrue more interest than necessary. You can avoid high fees and unnecessary expenses by repaying the loan on time and in full. In fact, by so doing, you'll probably improve your credit score. These loans really are intended to help cover needs and not to finance wants. But if you pay back the loan and increase your credit score, you will be improve your chances of qualifying for loans in the future with lower interest rates that can help finance things you might want.

But if you take out this loan and it helps improve your credit, then you will be in a better position to finance your wants in the future. If you want to take out a guaranteed high risk personal loan, you'll want to shop around for the best deal. There are a few companies out there that are willing to offer a pretty good deal and it could end up saving you some money. Lending institutions are concerned about bringing in business, so especially if you are a first time borrower, they might offer a lower interest rate or waive fees associated with the loan. For these particular types of loans, banks and credit unions aren't the place to look since most don't offer them. There are companies that specialize in these kinds of loans so the internet or phone book can be an excellent source of information to help you find the best deal for you.

About the Author:

Dave teaches people about cheap guaranteed high risk personal loans and many other types of bad credit personal loans. You can take a look at other financial topics that Dave has written by visiting his site.

Platinum Credit Cards

By Gray Rollins

Platinum credit cards offer more benefits and purchasing power than the Gold or Standard credit cards. The status associated with Platinum credit cards is one of the reasons people prefer this card. In today's society where image is so important, possessing a platinum credit card says you are a successful person. This card is for those with a high income and excellent credit rating.

One type of platinum credit card offered is the American Express Platinum credit card. This card will allow you up to $100,000 in credit depending upon your credit history and income. This is a highly prized card because of the status of having one and the benefits that come along. Known for being very liberal with credit line increases, they are more so the longer you keep your credit card, American Express also offers a 1.5 rewards points every time you purchase an item using this credit card.

MasterCard Platinum credit card is another card that is accepted worldwide and offers reasonable interest rates for purchases. The MasterCard credit card company only requires prompt payments to maintain the reasonable percentage rate.

The platinum Master Card is for those with higher incomes but if you only pay the minimum on your outstanding balance your interest rates can go up by as much as 35%. When choosing this type of credit card the best way to save the interest and fees is by paying off the balance each month.

The Discover More Platinum credit card is a card with high spending limits and no annual fee. The introductory period offers a low APR and as long as you maintain your good credit, the APR does not increase a lot. The rebates you can earn on practically anything you purchase are enhanced with bonuses at certain places you use your card. With online account access, this is a card that can be quite worthwhile if you maintain your credit rating.

Platinum credit card features wider range of benefits and opportunities than the silver or gold credit cards. It extends additional services such as concierge services, travel services, and purchases on high class establishments. Once you met the qualifications of being a high earning individual with high credit score, you can avail this Platinum credit card and experience its benefits and privileges.

Platinum credit card is also offered to business institutions for their company purchases. The features of the business credit card are the same with that of the personal credit card. Some credit card companies offer the platinum business card with no APR on the first twelve months and low APR thereafter, while some offer no annual fee. To avail the 3 to 25% discount on purchases, buy the materials your business needs from those stores affiliated with the credit card companies.

Platinum credit shopping cards are also available in any credit card company. This card is not like the regular credit card that can be used for any type of services; this is just meant for shopping. Purchases made through this card will also be reported and posted in your credit history and payments made will also be reflected to the credit score.

About the Author:

Not all Platinum Cards are created equal. In fact, some are just downright lowsy. Get the best Platinum Card available by applying for the American Express Platinum Card today and you'll receive 25,000 points as a special one time bonus.

Caring for Your Family Once You're Gone - Estate Planning

By William Blake

Estate planning retirement helps you to preserve your wealth for you and your heirs. Estate planning retirement will allow you to leave an inheritance to your loved ones that will let them know your exact wishes and gives them some kind of legacy to remember you by. Without estate planning retirement, you would not be able to do that and you may leave your loved ones with unpaid estate taxes, legal issues and other financial burdens. Creating an estate planning retirement will allow your loved ones to pay minimal taxes and prevent your assets from going to the government.

Many people put off making an estate planning retirement plan because they may think it is too time consuming or too difficult. It certainly will take a little time and effort, but it will be worth it in the long run. Once you get started, it will be easy. You must put together your assets and liabilities. Gather relevant documents and inventory of belongings.

A Working Plan

Once you have accounted for all of your assets it is time to put a good estate plan into action. There are certain things you will need to consider:

- List your beneficiaries

- Make a note of what each beneficiary will receive

- Determine how you want benefits distributed to each of your heirs

- Take into consideration any business or real property you may have that will need to be handled

- Before setting it all in stone discuss your decisions with your family

Never hesitate to plan your estate because you are unsure of what you want to do with your assets when you are gone. Remember that any plan you make can be adjusted if necessary. What is more important is that you begin to get things on paper and put some sort of plan into action. As you family's needs change or as your circumstances change you can revise your estate plan. Even if you feel you have very little to distribute in your estate it is best to set out on paper how you would like it handled to save your family from having to make those tough decisions.

About the Author:

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