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Need help with too much debt? Many are­! Yet, help exists. The­re are two key re­medies: balance transfe­rs and personal loans. But which will aid you best? It seems like a challenging decision to make, but there is always an option to rely on financial experts from trusted platforms. Meet BadCredify - an online platform to compare consumer loans, that helps Americans choose the best financial products. Their team of experts aims to assist you in understanding the­ advantages, disadvantages, and all the little­ details of balance transfers and pe­rsonal loans. So, fasten your se­atbelts as we journey towards a robust de­bt-busting strategy.

6 Things to Consider Before Debt Consolidation

It is excellent that you are considering credit card debt consolidation. It's an essential step towards financial stability. The­re are six things you should think about:

Interest Rates

One­ awesome thing about consolidating is getting a lowe­r interest rate for any type of personal loan. Se­e the rates of your curre­nt debts, then compare the­m to a consolidation loan's rate. If the credit utilization ratio is good, you're he­ading the right way.

Fees and Charge­s

It's always best to avoid financial shocks when dealing with balance transfers and debt consolidation loans. Watch out for the balance transfer fee tied to de­bt consolidation. There can be origination fe­es or other unforese­en costs. Stay well-informed be­fore you apply for personal loans.

Repayme­nt Terms

Think about how long you're OK with being in de­bt. Review the payback te­rms of your possible consolidation loan. Long terms could lower your monthly payme­nts but increase intere­st over time. Analyze the­ benefits and drawbacks according to your financial plans.

Credit Score­ Impact

Your credit score may change whe­n you consolidate credit card debt with personal loans or a balance transfer card. The silve­r lining is the change often that doe­sn't last long. However, be re­ady for the possible effects. A good credit score is your financial shield. Aim to ke­ep your credit score high.

Financial Habits

Debt consolidation is not a magic cure. It's a me­thod to gain control over your finances. Refle­ct on your spending and ensure you're­ ready for a positive shift. If not, you might end up in the­ same tricky situation again.

Debt Cate­gory

Various debts come with diverse­ regulations and advantages. Like, stude­nt loans usually offer more adjustable payme­nt plans than balance transfer credit cards. Grasp the unique spe­cifics of the debts you're me­rging.

Balance Transfer Credit Card vs. Personal Loan: Main Differences

So you're stuck in a mone­y mess, considering a balance transfe­r or a personal loan, right? No issue, we ge­t it. Let's simply explain the chie­f differences be­tween these­ two financial strategies without making it dull.

Firstly, a balance transfer credit card is akin to musical chairs, but with your credit card debt. You shift the balance­ from one high-interest card to anothe­r with lesser intere­st. It's somewhat like making your high-interest debt le­ss stressful. But watch out for hidden transfer fe­es and teaser rate­s that might surprise you unexpecte­dly.

Conversely, a personal loan is like­ borrowing a solid amount of money. It's not linked to any credit card, and you can spe­nd it on anything you want – clearing off debt, re­pairing a damaged roof, or going on an awaited trip. Unlike a balance transfer card, personal loans usually come­ with fixed interest rate­s, so you're aware of what you are signing up for upfront.

Spe­aking of when to use a balance transfe­r may be handy when dealing with cre­dit card debt. You can bag some excellent 0% introductory APR deals and cle­ar your debt without piling up interest. But re­member, once that elementary pe­riod lapses, the intere­st rate can shoot up suddenly.

In contrast with a balance transfer card, personal loans give­ you more time to pay back. They're­ the steady-paced compe­titor in the race. You'll have a fixe­d monthly payment, which could be a boon or a bane base­d on your budget management.

Consider your cre­dit score. It might not be impacted as much by a balance­ transfer because it's just shifting de­bt. But a personal loan? That's new. Applying could hit your credit score­ harder.

If high credit card intere­st rates scare you and you can handle the­ hoopla of transfer, a balance transfer could save­ your bacon. However, if you're afte­r some serious cash for a specific thing and like­ a stable payback plan, then a personal loan is your ticke­t. So, do the math.

Should I Do a Balance Transfer or a Personal Loan?

Sorting out debt involve­s picking between a balance­ transfer and a personal loan, depe­nding on certain variables. Let's unpack the primary information.

Have you got high-inte­rest credit card debt? A balance­ transfer can aid you to outsmart it. You shift your credit card balances to a card offe­ring a lower interest rate­, maybe even at 0% for a while­. This space allows you to combat the debt without accruing more­ interest.

Alternative­ly, desire a steady re­payment strategy? A personal loan is your answe­r. Personal loans generally offe­r lower interest rate­s than balance transfer credit cards, plus a consistent repayme­nt plan. This straightforward path makes budget planning and managing your finances e­asy.

Choose according to your financial status and goals. It could be an instant solution if you anticipate cle­aring the debt within the 0% inte­rest duration of a balance transfer card and are­ open to a bit of juggling. Howe­ver, if you prefer a re­liable repayment structure­ with the potential for a lower intere­st rate, a personal loan may suit you bette­r.

Remember to compare­ the terms, intere­st rates, and any attached fee­s to both options. It's good practice to consult a financial advisor to confirm the most suitable choice­ for your specific circumstances.

What are the Alternatives to Consolidate Debt?

A De­bt Management Plan (DMP) is the first option you can choose instead of a balance transfer or a personal loan to consolidate your debt. With a DMP, a cre­dit counselling agency helps you make­ a payoff plan. They might even ge­t your creditors to reduce inte­rest rates and set an e­asier fixed monthly payment schedule­.

A home equity loan or cre­dit line might work if you own a house. By leveraging your home­'s equity, you might get a lower rate­ to pay your debts.

Finally, think about the snowball or avalanche te­chnique. The snowball approach pays off little de­bts first, building speed as you go. The avalanche­ approach targets high-interest de­bts first, saving more cash over time.

Re­member, choose what works for your finance­s and objectives. Consulting a financial advisor can always assist you in managing your debts.

Choosing a Personal Loan or Credit Card Balance Transfer

Personal finance­ can be confusing, especially when choosing be­tween a debt consolidation loan or a credit card balance­ transfer. Both have pros and cons.

A personal loan? It's like­ a smooth, clear path that has no credit limit. You've got a fixed inte­rest. A set payment plan. And no surprise­s. Perfect for people­ who stay the course.

But then the­re's the credit card balance­ transfer method. Think of it as a side road, full of pe­rks but also risks. The appeal of low or eve­n no interest is rugged to resist but be­ware of hidden fee­s and debt traps. If you're smart about your credit, the­n this might be your ticket to saving big.

The final de­cision is up to you and your specific financial situation and goals. Want stability? Go for the loan. Pre­fer flexible re­wards? The balance transfer might be­ best. It's all about fitting your financial style.

No matter which route­ you choose: balance transfers and personal loans. Remembe­r to read the fine print and stay informe­d. Both options come with responsibilities. May your financial choice­s lead to a bright and secure future­, whether on the we­ll-lit road of a debt consolidation loan or the winding path of a balance transfer.

It can be difficult to get a business loan when you’re just starting, anyway. But a loan could open many doors for your business – you could use it to expand operations, update your equipment, or solve cash flow problems related to late payments from customers or seasonal fluctuations in revenue.

If you’ve never gotten a business loan before, the process can be intimidating. But it doesn’t have to be. Follow these steps to get the funding your business needs.

Look Into Your Options

There are lots of loan options available to small business owners, and lots of lenders to choose from. So, the first step is to look into your options in terms of lenders and types of loans available. 

Start by considering what you’re going to use the loan for. If you want to expand your small business or upgrade your equipment, a traditional small business loan backed by the SBA might be ideal. If you need to borrow money to cover daily operating expenses, consider a business line of credit or a business credit card. If you need to fund a startup, have bad credit, or need the funds quickly, you should consider a short-term loan or a merchant cash advance from an alternative online lender. Make sure to compare interest rates and repayment terms for different loan products and lenders before you make a final decision.

Make Sure You Can Handle Repayments

The rule of thumb when running a business is that you should be bringing in 1.25 times your total operating expenses in revenue. That means if your business brings in $10,000 a month, and your operating expenses are $6,000, you can afford $2,000 a month in loan repayments. Remember that some alternative lenders require daily or weekly repayment schedules, so you may be making many payments each month.

Get Together Your Documentation

Online lenders may not require as much documentation for small business loans as traditional lenders, and they’re less likely to require collateral, too. You may need to prepare a business plan or a proposal outlining how you plan to use the money, as well as basic information about your business. You may also need to prove your business income using profit and loss statements, bank account statements, and tax returns. You’ll need to provide Social Security numbers and other information for all of the business owners. You may need to sign a personal guarantee and put up collateral. 

Apply

Once you have all your documentation ready, you can apply for your business loan. If you go through an alternative lender, you can apply online and get approved right away. Banks and credit unions giving more traditional business loans will make you apply in person at a branch or over the phone. If you need help preparing your loan application, go to your local Small Business Development Center to get assistance. They can help you make sure that you’re providing everything the lender needs and that the loan application is formatted correctly. The more you can cut down on the interaction between you and your lender during the underwriting process, the faster you will get your loan funds.

Read Your Loan Agreement

You should always read contracts before you sign them, including loan agreements. Your business loan agreement spells out the terms of your business loan, including how much you’ve borrowed and what your repayment schedule is. Interest rates, fees, penalties for late payments, and payment amounts should also be outlined in the loan agreement. 

Review your loan agreement carefully and note any questions you might have for the lender. Again, seek help from your local Small Business Development Center if you need it, or reach out to a business attorney. Contact your lender for answers to any questions you might have or clarification on confusing points. Once you’re satisfied, you’ll sign the loan agreement and return it to the lender.

Get the Money

Now that your loan is approved, you can get your money. These days, lenders typically disburse loan amounts by direct deposit. You can get your loan money deposited into your business checking account. 

Don’t be intimidated by the prospect of getting a small business loan. It’s easier than ever to borrow money for your business. As long as you can afford to make the repayments, a small business loan can benefit your business. You could get the funds to expand, update equipment, cover day-to-day operating expenses during a slow period, and more.

For many, the memory of it is still fresh. Less widely known is the savings and loan crisis of the 1980s and 1990s, a financial catastrophe that led to the collapse of over 1,000 S&L institutions. Yet Ben Miller, CEO of Fundrise, America’s largest direct-to-investor alternative asset manager, sees the S&L crisis as “the big bang of finance.”

The S&L crisis marked the point at which the modern banking landscape began to take its current shape, Miller said. And like the Big Bang, its ripple effects are still measurable today.

In a recent wide-ranging podcast interview, Miller delved into the S&L crisis, including the regulatory missteps made before and in response to the crisis, as well as the lessons it holds for today's financial markets. 

“I think there's three epochs of finance in American history. There's pre-[Great] Depression, there's the Depression to the 1980s, and there's the 1980s to now, and the S&L crisis is the turning point,” said Miller. 

“It's the origin. It birthed modern real estate, and I think it birthed modern banking.”

What Is a Savings and Loan?

To understand the S&L crisis, it’s key to understand its history as a centrepiece of American finance in the mid-20th century. On Fundrise’s “Onward podcast, Miller and co-host Cardiff Garcia dove deep into the history of the concept. 

They explained that S&Ls, also known as thrifts, were created as financial institutions primarily focused on taking deposits and providing home mortgages. Unlike banks, they were not diversified and did not offer other types of loans. They were mutual organizations, meaning they were owned by the depositors, not shareholders. This made them inherently conservative and focused on serving local communities. 

Fans of actor Jimmy Stewart will recognize the concept of an S&L from his character’s Bailey Bros. Building & Loan in It’s a Wonderful Life.

“The important thing to note is that they were very simple,” said Garcia. “You put your money into this thing like a deposit. It was lent out to somebody to finance a home and then it would get paid back.” 

While a simple idea, the S&L was a revolutionary step in finance in that it enabled average Americans to realize the goal of home ownership.

The Anatomy of a Crisis

However, S&Ls were ripe for crisis, particularly in an environment of rising interest rates and regulatory missteps. 

Regulation Q, established by Congress in 1933 to prohibit banks from paying interest on checking accounts, was amended in 1966 to cap the interest rates that S&Ls could pay to their depositors. It still allowed a high enough rate to be a preferable option to traditional banks. This was designed to protect S&Ls and make them more attractive for savers. 

Miller explained that S&Ls were able to give depositors a savings rate that was 50 basis points, or about 0.5%, higher than those given by banks. “So, essentially you're going to put your money with the S&Ls because you're going to get paid more to do that," he said. 

But this change to Regulation Q, initially intended to protect S&Ls, became a double-edged sword. It capped the interest rates S&Ls could offer depositors, so when inflation and interest rates soared in the 1970s, S&Ls found themselves in a precarious position. They were receiving lower interest on the long-term mortgages they had issued, and they were no longer an attractive option for depositors because the rates they could offer were capped. 

This interest rate mismatch meant the S&Ls were taking in fewer deposits, while the value of their previously issued mortgages, locked in at lower rates, plummeted. 

Moreover, S&Ls began to engage in riskier investments, including speculative real estate ventures, to compensate for their dwindling profits. As these risky investments began to fail, public confidence in S&Ls waned, leading to runs on deposits and setting the stage for the crisis that would unfold in the 1980s. 

While S&Ls still exist, the crisis toppled them from their standing as the primary source of home loans in America, leaving a gap in the real estate market out of which would emerge first larger, diversified lenders and now startup fintech companies like Fundrise. 

Fundrise and the Evolution of Real Estate Investment 

Miller described the S&L crisis as the "birth of the modern banking sector," with the emergence of national banks and diversified lending portfolios. It also created the modern real estate market landscape. 

"Out of this period is a rebirth, this phoenix, and everything we take for granted as normal in real estate.”

The crisis led to a vacuum in the real estate financing sector. Traditional sources of funding were either insolvent or too cautious to lend, paving the way for the rise of real estate private equity. These firms stepped in to provide much-needed capital, often targeting distressed assets that could be acquired at a discount. The private equity model allowed for more flexible and strategic investment, often involving the renovation and repositioning of assets to generate higher returns.

More importantly for Miller and Fundrise, the crisis led to the emergence of public real estate investment trusts. Before the crisis, real estate investment was largely the domain of wealthy individuals and institutional investors. The emergence of public REITs helped democratize access to real estate investment by allowing individuals to buy shares in large real estate portfolios, much like buying stocks. This opened up new avenues for investors to participate in the real estate market.

With Fundrise, Miller initially sought to build on the REIT model by combining it with fintech software to improve accessibility. The company has since branched into using its technology for other investments, including private credit. Miller believes regulatory mistakes facilitated and exacerbated the S&L crisis and other financial crises, and this is a reason to pursue a more direct-access model of finance facilitated by fintech. 

“It's the government backstop that's the problem, and 10 years from now when people forget about how bank deregulation is a problem and we have another blowup, which has pretty much always happened in the history of finance, you might see that technology has made intermediation of finance better than using an old fashioned bank.”

However, it often comes with financial considerations that can seem overwhelming. Fortunately, with the help of a housing loan EMI calculator, you can take control of your finances and plan for your dream home with confidence. In this blog post, we will explore the benefits of using a home loan EMI calculator and how it can assist you in making informed decisions about your home loan.

Understanding Home Loan EMIs

A Home Loan EMI (Equated Monthly Instalment) is the fixed amount you repay to the lender each month towards your home loan. It consists of both the principal amount and the interest charged by the lender. By calculating the EMI, you can accurately assess the affordability of your loan and plan your finances accordingly.

Benefits of Using a Home Loan EMI Calculator

  1. Accurate and Instant Calculations: A housing loan EMI calculator takes into account the loan amount, interest rate, and tenure to provide you with an accurate EMI calculation. This saves you time and effort compared to manual calculations, ensuring you have instant results at your fingertips.
  2. Financial Planning and Budgeting: By using a housing loan EMI calculator, you can plan your finances effectively. It helps you determine the monthly EMI amount based on different loan amounts, interest rates, and tenures. This enables you to assess your financial capacity and adjust the loan parameters to fit your budget comfortably.
  3. Explore Different Scenarios: The flexibility of a home loan calculator allows you to explore various loan scenarios. You can adjust the loan amount, interest rate, and tenure to see how they impact your EMI. This empowers you to make informed decisions and choose a loan structure that best suits your financial goals.
  4. Comparison of Loan Offers: If you're considering multiple loan offers from different lenders, a home loan EMI calculator can be invaluable. By entering the loan details from different lenders into the calculator, you can compare the resulting EMIs and choose the most favourable loan offer that aligns with your financial needs.
  5. Visualize the Amortization Schedule: An EMI Calculator also provides an amortization schedule, which displays the loan repayment plan over the tenure. It shows the principal and interest components of each EMI, helping you understand the progress of your loan repayment and the interest outflow over time.

Using a home loan EMI calculator

  1. Enter Loan Details: To use a housing loan EMI calculator, input the loan amount, interest rate, and tenure. Ensure that the data you enter is accurate to obtain precise calculations.
  2. Calculate EMI: Once you've entered the loan details, the calculator will generate the EMI amount. It will also provide a breakdown of the interest and principal components of each payment.
  3. Analyse Results: Review the EMI amount and analyse its affordability within your budget. If the resulting EMI is higher than expected, consider adjusting the loan amount, interest rate, or tenure to find a comfortable EMI that suits your financial capabilities.
  4. Plan for the Future: A home loan calculator helps you plan for the long term. By studying the amortization schedule, you can understand the repayment structure and strategize ways to reduce the interest burden, such as making prepayments or opting for shorter loan tenures.

In conclusion, planning for your dream home is an exciting yet complex endeavour. However, with the power of an EMI calculator, you can navigate through the financial aspects of homeownership with confidence and clarity. The EMI calculator serves as a valuable tool that enables you to make well-informed decisions based on accurate calculations.

By harnessing the power of an EMI calculator, you gain numerous benefits. Firstly, you can accurately determine the Equated Monthly Instalment (EMI) based on factors such as loan amount, interest rate, and tenure. This helps you assess the affordability of your home loan and ensures that it aligns with your financial capabilities.

Additionally, an EMI calculator allows you to explore different loan scenarios. You can adjust the loan parameters and instantly see how they affect your EMI. This empowers you to find the right balance between loan amount, interest rate, and tenure that suits your budget and long-term financial goals.

Furthermore, the EMI calculator provides you with an amortization schedule, offering a comprehensive view of your loan repayment journey. This schedule outlines the principal and interest components of each EMI, helping you understand the progress of your loan and plan for the future. It allows you to strategize prepayments, choose shorter loan tenures, or assess the overall interest outflow.

Moreover, the EMI calculator simplifies the comparison of loan offers from different lenders. With just a few clicks, you can input the loan details and instantly compare the resulting EMIs. This empowers you to make a well-informed decision by choosing the most favourable loan offer that meets your requirements.

Ultimately, the EMI calculator puts you in control of your financial planning when it comes to your dream home. It eliminates guesswork and provides accurate calculations, allowing you to budget effectively and ensure that your homeownership journey remains within your means.

So, whether you are a first-time homebuyer or a seasoned homeowner, don't underestimate the power of an EMI calculator. It is a valuable resource that assists you in making informed decisions, maximizing affordability, and ensuring a smooth path towards owning your dream home. Embrace the power of the EMI calculator and embark on your homeownership journey with confidence and financial clarity.

If so, you'll want to be well-prepared with all the necessary documentation. Having the right paperwork not only demonstrates financial responsibility but also greatly improves your chances of approval. 

In this article, we're taking an in-depth look at crucial income verification documents – like bank statements, pay stubs, tax returns, and W-2 or 1099 forms – and offering tips on how to replace any lost ones.

Bank Statements

Bank statements are essential for showing a clear picture of your financial history, which is crucial when applying for a big loan. A bank statement, typically issued monthly by your bank, lists all transactions and balances for that specific period.

Why are they so important? These statements help lenders assess whether you carry too much debt or struggle with managing your finances effectively. They allow them to analyze deposits (perhaps even paycheck deposits), recurring bill payments, and overall cash flow into and out of your account.

Now, what if you've misplaced your bank statements or need one from a specific time frame? Don't fret! Getting a replacement bank statement is usually an easy process. 

As you're exploring different options for replacement statements, check out platforms that provide customizable green dot bank statements as well. These enable you to change certain information within the document while still maintaining its authenticity.

Pay Stubs

Pay stubs play a vital role in validating your income for loan approval. These documents, typically provided by your employer each time you're paid, summarize your earnings, deductions, and net income. Essentially, they act as proof that you receive a steady income – something lenders want to see when considering big loan applicants.

Why do pay stubs matter? Well, for one, they help lenders determine your gross monthly income. Furthermore, they provide important insights into additional elements such as withheld taxes and deductions for insurance premiums or retirement plan contributions.

But what if you've misplaced some of your pay stubs? No need to panic! Here's how you can replace lost ones:

  1. Ask Your Employer: The easiest solution is to reach out to your employer's payroll or human resources department and request copies of the missing pay stubs.
  2. Online Payroll Access: Many employers allow employees to access their pay stubs through an online portal. Log in and retrieve the necessary information quickly.
  3. Direct Deposit Records: Sometimes people opt for direct deposit without receiving physical pay stubs from their employer. In this case, try checking with your bank.

Tax Returns

Tax returns are crucial when applying for a big personal loan because they showcase your annual income and provide lenders with a detailed overview of your financial situation.

Why do tax returns matter? Firstly, they demonstrate stable income over time – an important factor in determining whether you're capable of repaying a loan. Secondly, they show any adjustments to your taxable income through deductions or credits.

In case you've misplaced some of those documents, here's how to replace lost tax returns:

  1. Internal Revenue Service (IRS) Website: The IRS offers online access to previous tax returns. Sign up on their website and download what you need electronically.
  2. Tax Preparer/Accountant: If you worked with a professional during the filing process, contacting them might be helpful as they often save copies of client documents.
  3. Request Transcript by Mail: Alternatively, request a tax return transcript or a tax account transcript, which contains most of the essential tax return information.

W-2 or 1099 Forms

W-2 and 1099 forms are important when applying for a big loan, as they offer further proof of your annual income. Both documents are provided by employers, clients, or other entities paying you throughout the year. 

W-2 forms show your wages while employed (typically full-time), while 1099 forms reflect income from freelance work, contract jobs, or other non-traditional employment.

They provide concrete evidence of the income you've earned over the past years, which helps lenders ascertain your capacity to handle loan repayments. If you've misplaced these vital documents, here's how to replace them:

  1. Contact Your Employer/Client: Reach out to the party responsible for issuing the form and request a new copy.
  2. Request Form W-2 Online: Visit the IRS website and search their online database for a digital copy of your missing W-2 form.
  3. File Form 4506-T: To replace a lost 1099 form, complete Form 4506-T (Request Wage & Income Transcript) and indicate the type of documents you need. The IRS will then provide a transcript containing information on the 1099 received.
  4. Check Tax Software: If you used tax software to file your returns, log into your account and try accessing any saved W-2 or 1099 forms there.

Other Documents

Other documents you might need in order to prove your income for a big loan include;

Now that you're equipped with the knowledge of essential loan documentation, it's time to put it into action! Gather your pay stubs, tax returns, W-2 or 1099 forms, and other relevant documents to present a solid case for your loan approval. 

If you've misplaced some of these critical documents, use our tips to track down replacements swiftly. Being proactive and well-prepared will only strengthen your application and boost your chances of success. Don't let anything stand in the way of achieving your financial dreams – go ahead and confidently embark on your big loan application journey today!

However, with that fun and thrilling feeling of searching for a home comes the inevitable worry of obtaining a decent mortgage loan. And while real estate brokerage firms like Compass will always advise buyers to work with a lender they feel appreciated, understood, and comfortable with, there are a lot of other variables that need to be considered too. 

To help you feel a little more confident when interest rates and other financial matters are discussed, here are some of the biggest factors that can impact your mortgage interest rates.

Your credit score

This is probably the most important factor that lenders are looking for when they calculate how reliable you’d be as a potential borrower. Determining your credit score includes various things like all of your debts, credit cards, other loans, and your repayment history on those debts. 

A credit score tends to be in the range of 300-850. The higher your score, the lower your interest rate will be. 

Your loan term

In general, the term of your loan has a lot of contributing factors to your interest rates. Short-term loans will inevitably have much lower rates of interest and costs, but of course, the monthly payments will increase significantly. 

If you’re concerned about these contributing factors, the majority of lenders will help you to find a mutually acceptable rate that’s within your budget.

The downpayment you’ve made

As you’d expect, the higher your down payment is, the lower your interest rate will probably be. The majority of lenders will see you as a low-risk borrower if you have more of your own money put into the place. 

If you can hang in there, save, and get a solid 25% or so of your own cash in a new place, then you’ll probably end up getting a better (in other words, lower) mortgage loan rate. 

Home price/loan amount ratio

Essentially, this is the price of your place, minus the down payment or borrowed mortgage loan amount. If you’re borrowing an unusually small or large amount for your mortgage, your interest rate will rise significantly. 

If you’re able to keep the amount you plan to borrow at the forefront of your housing search, you’ll be able to get a rough idea of how it could impact your mortgage rate. It’s important to calculate a ballpark figure that you’re comfortable with paying each month. 

The type of interest rate

Generally speaking, you’ll encounter two kinds of business rates - fixed rates and adjustable rates. As the name implies, a fixed rate doesn’t change over time, whereas adjustable rates will eventually rise or fall based on the real estate market. 

While adjustable loans tend to have lower interest rates, it’s important to understand how much they could increase due to fluctuations in the market.

The most popular debt that people often consolidate is credit card debt, usually because it has very high-interest rates. However, people can also consolidate other types of debts, such as payday loans, personal loans, and medical bills, so how do you settle on a debt consolidation loan lender?

Is It A Good Idea To Consolidate Your Debts?

A debt consolidation loan is a personal loan, in most cases, not everyone has the creditworthiness to qualify for such a loan. First, you’d need to check if you’re eligible for an affordable personal loan. Second, depending on the amount of debt loan and company (lender), a debt consolidation loan might be expensive in the long run. For instance, taking a debt consolidation loan allows you to pay it back to only one lender. You might be making large payments over a long period, which may result in you paying in the long term.

Lastly, if you’re finding a challenge in paying back your current debts, will you be able to afford to pay the debt consolidation loan? You need to scrutinise your income and see the money you have and whether you’ll comfortably afford the debt consolidation loan repayments. 

When Is A Debt Consolidation Loan A Good Idea?

A debt consolidation loan is a good idea if:

If you feel that the debt might be another challenge, the best thing to do is talk to a financial advisor before you make any move.

How Do I Choose A Debt Consolidation Loan Lender?

Since debt consolidation does not come for free, you need a debt consolidation loan that fits within your budget and helps you meet your financial goal of eliminating debt. Before giving you a loan, many lenders often pre-qualify you without inquiring into your credit. Information from pre-qualifications can give you an idea of the loan amount, rate, and term you could qualify for should your application be approved. 

To choose a loan consolidation lender, you can use the pre-qualification information to compare your options and decide on the lender that's best for you based on different factors such as:

Endnote

If you decide to consolidate your debts through a debt consolidation loan, it’s important to take your time to research your options. Make sure the loan will fit your budget demands and help you eliminate debt. Don’t settle for a high APR that might affect your overall financial goals.

Mark has a passion for providing exceptional customer service and teaching others the art of real estate investing. He often provides training and educational presentations to groups interested in real estate investing. Below, we speak with him about the way the pandemic has affected lending and whether now’s a good time to get a loan or not.

From your experience, in what ways has the current pandemic affected loans?

Initially, the COVID-19 pandemic put the industry on high alert. No one was sure what would happen. And widespread unemployment can certainly be a factor. That said, Texas has strong employment and a low cost of living.  We tend to weather such storms well. Right now, our local real estate market is experiencing a very low inventory. It’s an excellent time for real estate investors who can find a property to fix and flip because demand for the finished product exceeds the supply. And there has actually been an increase in demand this past year; particularly for refis due to the low-interest rates.

Have you been busier during the past twelve months and if so, how have you navigated this?

All lenders have struggled a little with those third-party vendors on which we rely; particularly appraisers who as you can imagine had issues with inspecting properties in person. However, Zeus is the leader in online real estate lending™ and that has positioned us very well during the pandemic. We can complete the entire loan process with all our usual personal and friendly service without the borrower ever having to leave their home.

Do you think that getting a loan during the current uncertain times is a good idea?

This is a question we’ve received time and time again since the COVID-19 pandemic began: Is now a good time to get a home loan or mortgage? Unfortunately, there’s no one, single answer that applies to everyone! Every potential borrower has a different set of circumstances, including credit score, financial assets, income, and other factors. For most people, however, the experts at ZeusLending would say ‘yes’ - now is a great time to get a loan!

Here’s why:

Lenders are still lending money during the pandemic, and borrowers are still buying homes and investment properties. Interest rates are super low as the economy struggles under the weight of the crisis. Perhaps counterintuitively, the demand for homes and property has not dipped a bit. For many, it has proven to be relatively easy to qualify for an affordable loan in 2021 thanks to the influx of deals and properties purchased during the pandemic. The number of people seeking a great deal has increased competition not only for homebuyers but for lenders as well. That competition results in great terms for many borrowers!

During the pandemic, some lenders are being very careful to closely examine borrowers’ credit histories. Due to the uncertainty regarding the future that the pandemic has caused, banks are tightening up on lending to homebuyers who are credit-challenged. The market instability caused by COVID-19 and the higher risks that instability poses make lenders a little more cautious.

Another factor many lenders may scrutinise during the pandemic is a homebuyer’s income. Verification of employment will likely weigh heavily in determining the likelihood of a borrower’s employment continuing. Borrowers need to make sure all their income is accounted for and will be reflected in the verification of employment.

Borrowers need to be prepared to strategise their best approach: If they need non-traditional lending, having a loan officer and mortgage company that is able to customise solutions for you and your specific scenario is key. Innovative lending solutions are ZeusLending’s speciality! Because we offer so many different loan products, our borrowers have more available options to prove their ability to repay.

What are the biggest mistakes people make when buying real estate?

Finding the lowest interest rate is not always the best deal. 

Some loans have very attractive interest rates (also known as teaser rates) but you may be hit with higher upfront charges.

Points and or origination fees are the most common ways to lower the rate and charge upfront costs. Points and origination fees are calculated as a percentage of the loan amount. For example: Often the difference in monthly payments from a slightly higher interest rate takes 10 years to equal these upfront costs. Many people will have refinanced or purchased another home before this occurs.

Adjustable Rate Mortgages (ARMs) and Balloon Mortgages.

ARM rates will adjust depending on the loan. The ARM rates may adjust as often as every six months, but in most cases, they adjust after 1,2,3, and 5 years. Those rates are far more likely to go up when they adjust. The Balloon Mortgage requires the borrower to pay the loan off when it matures, usually between two - seven years.

There are many lending tactics to sell the borrower on a low rate and then charge outrageous fees and costs. Borrowers need to watch out for the “bait and switch” lending ploy.

Buying FHA, VA, or IRS repossessed homes may be a mistake.

I am not against purchasing a repossessed or discounted property. In many markets, especially those that are having financial trouble, a repossessed home may make good sense. But keep in mind:

Making large purchases before purchasing a home. 

It is very common to get so excited about buying a new house that homebuyers go out and buy new furniture or even a new car before closing on the house – this is a big mistake. Doing so can radically change the credit profile and the debt to income ratio. Too many otherwise good applicants end up rejected at the last minute because of a big spend during this window.

Working with a mortgage lender who only has one product to sell may not meet everyone’s specific needs.

Most lenders only have one source of funds. This type of lender is forced to “fit” the customer into a pre-fabricated loan program. They only have one or two different ways to handle the many different loan situations that occur. It is important that customers research lenders with multiple products and the ability to customise their loans. We feel an educated borrower has the ability to make the decision that is best for them.

Not getting a pre-approval from your mortgage company before you start shopping for a home. 

Having a pre-approved loan can be very important. A pre-approval has two major benefits. First, there is the peace of mind before getting serious about buying a home. Homebuyers will know how much of a house they can afford, what the payments will be, and how much of a down payment is needed. Secondly, having a pre-approval may give homebuyers bargaining power when negotiating a price for the home. Getting pre-approved could save homebuyers a lot of time and money.

What are your predictions for the lending sector in 2021?

As I mentioned, currently there’s a low inventory market for homebuyers. But there are also supply off-market properties including foreclosures, bank REO and wholesale properties. The trend I see is that the residential real estate investors will take advantage of this low-inventory created demand and will snap up these properties, renovate them, and re-market them.

Citigroup Inc. has asked a federal court to order Brigade Capital Management LP to return a sum of $176 million that the New York-based bank wired to its accounts in a clerical error.

On Wednesday, loan operations staff at Citigroup mistakenly transferred $900 million to creditors of struggling cosmetics company Revlon Inc., a figure 100 times the size of the interest payments the bank had intended to make.

Citigroup stated that it had intended to send just $1.5 million to Brigade to cover interest on its loan of $174.7 million to Revlon, but instead sent $176.2 million.

After discovering its mistake, the bank “promptly asked the recipients to return its money,” according to Citigroup’s filing to the Southern District of New York Court. Some returned the erroneous payments, while others – including Brigade – did not immediately return the money, “despite crystal-clear evidence that the payments were made in error.

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Citigroup also noted in the suit that the money transferred was its own, not Revlon’s, and therefore should not be considered a repayment of the company’s outstanding loan.

Brigade did not immediately respond to a request for comment by the BBC, and Citigroup declined to comment further.

British pharmaceutical giant GSK will purchase a 10% stake in CureVac, a leading German biotech company working to create a vaccine against the COVID-19 virus, the two companies announced on Monday. GSK’s purchase will come to £130 million, or $163 million. An upfront payment of £04 million will be issued, followed by a one-time reimbursable payment of £26 million for manufacturing capacity reservation.

As part of the deal, both companies will collaborate on “the research, development, manufacturing and commercialisation of up to five mRNA-based vaccines and nonoclonal antibodies” to combat infectious diseases, according to the release. However, CureVac’s existing COVID-19 mRNA and rabies vaccines research programmes will not be included in its collaboration with GSK.

Earlier this month, CureVac was granted a €75 million loan by the European Investment Bank to fund the development and production of a COVID-19 vaccine, coming on top of a €300 million investment from the German government in June (taking a 23% stake in the company).

A Tübingen-based company, CureVac gained international attention in March after reports emerged that the Trump administration had issued a substantial offer of funding to the firm in return for its relocation to the US and exclusive rights to its eventual COVID-19 vaccine. CureVac denied that such a bid had been made.

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CureVac plans a stock market listing in September or October, and is likely to receive a high valuation due to its investments from GSK and others.

We are delighted to partner with GSK,” said Dr Franz-Werner Haas, CureVac’s acting CEO. “With this collaboration, we are gaining a world-class partner whose expertise and global footprint will allow us to further develop and translate the value of our platform into potential products for the world.

Roger Connor, President of GSK Vaccines, also commended the deal. “GSK’s self-amplifying mRNA (SAM) vaccine technology has shown us the potential of mRNA technology to advance the science of vaccine development, and CureVac’s experience complements our own expertise. Through the application of mRNA technology, including SAM, we hope to be able to develop and scale up advanced vaccines and therapies to treat and prevent infectious diseases quicker than ever before,” he said.

Nine out of ten young people want to buy a house, but recent analysis revealed just one in four will achieve it by 2026. From partnering up to selling prized possessions, people are resorting to to secure their place on the property ladder.

If you’re one of the lucky ones and you’ve finally managed to rustle up a deposit, you might be wondering: what’s next? After all, it’s easy for tunnel vision to set in when your eyes are on the prize for so long.

There are lots of other practical things to consider when you buy your first home. Here are eight of the most essential:

1. Mortgage options

All mortgages are not created equal, so the deal you find can make a big difference to what you can afford. Always seek mortgage advice – it’s important not just to find the best interest rates, but also because you’ll get a more accurate picture of what you can afford.

Factors like your income, whether or not you have a partner and both of your credit scores will affect the amount you can borrow. Online loan-to-income calculator tools can help, but it is always better to seek professional advice.

Make sure yours is independent, so they won’t try to sway you towards a particular product.

2. Solicitor fees

If you thought saving thousands of pounds for a deposit was enough to secure the keys to your very first home, you may be in for a shock. There are lots of other costs to cover – including solicitor’s fees.

The average cost of solicitor fees for buying a house is between £500 and £1,800 in the UK but this depends on how complicated the sale is. If your solicitor comes up against complex ownership structures, the charge may be higher, so always set a budget aside for this.

The average cost of solicitor fees for buying a house is between £500 and £1,800 in the UK but this depends on how complicated the sale is.

3. Life insurance

Buying your first home is an exciting time; death isn’t part of the plan. But, taking on a big financial responsibility means you need to plan ahead. This is especially true if you are buying with a partner: if they died, would you be able to foot the bill?

Purchasing life insurance is an important part of taking on a mortgage. Compare all types of life insurance to make sure you understand the best options for new homeowners – like decreasing-term insurance.

4. House insurance

Some mortgages require you to take out a house insurance policy as part of the deal, so this is also part and parcel of becoming a homeowner. Buildings insurance protects both you and your mortgage provider against the risk of damage to the structure of your home from things like subsidence, fire and extreme weather.

Always take out a buildings insurance policy to cover the potential cost of rebuilding your house after severe damage.

5. Protecting your deposit

Many couples buy their first homes together because it is so much more viable than going it alone. Your combined income is much higher, you pose less risk to lenders and you’ll be able to save for a deposit worth twice as much. This reality is attracting more friends and acquaintances than ever to buy a house together – a decision that can come back to bite unless the right preparations are made.

Instead, consider setting up a Declaration of Trust so that you will become ‘tenants in common’ and hold specific shares of the property. Speak to your solicitor about the options.

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6. Booking a surveyor

Homebuyer surveys help you to avoid unexpected costs. When you consider that the average cost of a boiler is now as much as £2,500, this is not a step worth skipping.

To find a reputable surveyor, enquire at an association like RPSA or RICS.

7. Stamp duty

They say two things are certain in life – taxes and death. Stamp duty is the tax you pay when buying a new house and it’s an important consideration for first-time buyers.

There is no stamp duty for properties worth less than £300,000, but if you’re a first-time buyer in London or the south-east, you might need to factor in a significant tax bill. Rates can be as high as 5% – which is a significant sum of money.

8. Negotiation

Finally, don’t forget negotiation. When you have had your eyes set on a goal for so long, you may be tempted to offer the full asking price – but this could be a mistake.

Keep an eye on the market and don’t be afraid to renegotiate after your surveyor creates their report. This way, your new house can be a great asset as well as a cosy new home.

It's best to look for other sources that can help you reach your business goals, so take a look below at some of the alternative methods of fundraising you can do.

Consider the Assistance from Angel Investors

These retired business gurus or successful entrepreneurs can be your ticket to salvation when you need funding. They are people who take a keen interest in your work and activities, making them huge supporters who want you to succeed and grow. Also, they can offer their advice and business expertise to make you a better player in the market.

Not your Average Loan 

When people think about loans, they consider personal or business ones, but no one would ever expect to get funding from your inheritance money. Some owners have a lot of money coming in but the probate process gets delayed and drags. That's why loans for heirs can be very appealing when you want quick funding for your startup or company. You get a considerable amount of the money entitled to you, and you can pay the debt off when the courts finally issue your money.

Have You Thought About Crowdfunding?

This is a good way to utilize the digital world to your benefit. There are several reputable platforms with different investors that can provide you with the money you need if your business activities pique their interest. Countless investors are on the lookout for decent companies that offer something special and useful to the community, so investing in your company can be beneficial for them, too.

So, if you are looking for such crowdfunding, arrange a Meeting of investors and venture capitalists at a club. This will be really fruitful for you

You Could Go for Factoring and Invoice Advances

This can be very handy when you find a provider that can front you some money on the invoices that you’ve already billed out; it's good for companies that constantly provide products and services to customers, and you will pay it back once your customers have paid the bill in full. It's a simple method that keeps your business running and projects operating without waiting for long periods of time for consumers to pay up.

Consider CDFI Assistance When Nothing Else Works

This stands for Community Development Finance Institutes. They are private financial organizations that deliver affordable lending options, making it very easy and advantageous for many businesses that are in need of quick funding to save them from tight situations. Many businesses don't get a chance to thrive or grow because of restricted money-raising methods, so this can be the answer to their capital needs to fund their business.

Managing your finances can be a little tricky, but with the right mindset and the willingness to find better and reliable sources for funding, you can make a huge difference in your company's success. You can't just sit there and wait for your company to crumble; choose the right path for you and get the best funding that suits your needs and goals.

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