How long is that credit card rate good for? Bet it is less than a year. What are you going to do at the end of that time? Trouble ahead!!!!!!!!!!
Why don’t you look for a better home equity loan rate? In fact, you may be able to get the current lender to lower the rate with no cost. Contact them, tell them you are going to refinance the loan but want to give them the opportunity to keep your business at a lower rate.
If your home equity loan can be paid without penalty (check out the terms of your loan), you can pay it off with your credit card. However, you need to read the fine print of your credit card offer to know if there are restrictions as to what type of loans you can pay off and still qualify for the low interest rate. Also, if it’s a new credit card offer you have to see if you can qualify for a $12,000 line of credit. There are so many variables, you really need to just read the fine print of the cc offer and call them with questions.
Tuesday, October 20, 2009
Personal Debt Consolidation Loans
1. Transfer your credit card debt to a 0% balance transfer credit card
If you currently have a lot of high interest credit card debt, you may be able to transfer some or all of it to a 0% balance transfer credit card, which will significantly reduce the amount of interest you are paying and make it faster and easier to repay your debt. Keep in mind that most balance transfer cards charge a fee to transfer the balance to the card. Even so, a 3-5% fee is substantially lower than the interest rates on many credit cards, which often exceed 20%. Here are a few of the top options if you want to do a 0% balance transfer:
Discover More American Flag Card: 0% balance transfer for 12 months, 5% transfer fee.
Discover® More(SM) Card: 0% balance transfer for 6 months, 3% balance transfer fee.
Citi® Platinum Select® MasterCard®: 0% balance transfer for 6 months, 3% balance transfer fee.
If you currently have a lot of high interest credit card debt, you may be able to transfer some or all of it to a 0% balance transfer credit card, which will significantly reduce the amount of interest you are paying and make it faster and easier to repay your debt. Keep in mind that most balance transfer cards charge a fee to transfer the balance to the card. Even so, a 3-5% fee is substantially lower than the interest rates on many credit cards, which often exceed 20%. Here are a few of the top options if you want to do a 0% balance transfer:
Discover More American Flag Card: 0% balance transfer for 12 months, 5% transfer fee.
Discover® More(SM) Card: 0% balance transfer for 6 months, 3% balance transfer fee.
Citi® Platinum Select® MasterCard®: 0% balance transfer for 6 months, 3% balance transfer fee.
Credit Suisse Alters Pay Plan for Top Executives
The bank said the compensation changes put it ahead of its rivals on Wall Street in adopting guidelines on best practice in pay that were recently put forward by the Group of 20 industrialized and large emerging nations.
Under the new plan, top executives will receive a proportionately higher base salary in cash. But the bonuses they receive on top of this will be deferred for a longer period and tied more closely to the bank’s performance and the performance of employees’ individual business units.
The bonuses will be split evenly between deferred stock and deferred cash. The stock portion of the bonuses will vest after four years — a year longer than has been the practice at Credit Suisse in the past — and will be adjusted according to the average share price and return on equity.
Under the new plan, top executives will receive a proportionately higher base salary in cash. But the bonuses they receive on top of this will be deferred for a longer period and tied more closely to the bank’s performance and the performance of employees’ individual business units.
The bonuses will be split evenly between deferred stock and deferred cash. The stock portion of the bonuses will vest after four years — a year longer than has been the practice at Credit Suisse in the past — and will be adjusted according to the average share price and return on equity.
Home Equity Loan vs. Home Equity Line Of Credit
Home Equity Loan
A home equity loan is a second mortgage. Second mortgages typically have a higher interest rate than a first mortgage because their position is riskier than that of the first lender. The interest rate will also be affected by the loan to value ratio. The more maxed out the house's value, the more risk for the lender and the higher interest rate the lender will want in return.
Normally a home equity loan is a lump sum distribution of funds at closing. Home equity loans usually have a fixed interest rate with amortized monthly payments. The repayment term of a home equity loan is normally shorter than a first mortgage. A home equity loan repayment term might be three years or fifteen years, but is not normally a full thirty years like a first lien mortgage.
A home equity loan is a second mortgage. Second mortgages typically have a higher interest rate than a first mortgage because their position is riskier than that of the first lender. The interest rate will also be affected by the loan to value ratio. The more maxed out the house's value, the more risk for the lender and the higher interest rate the lender will want in return.
Normally a home equity loan is a lump sum distribution of funds at closing. Home equity loans usually have a fixed interest rate with amortized monthly payments. The repayment term of a home equity loan is normally shorter than a first mortgage. A home equity loan repayment term might be three years or fifteen years, but is not normally a full thirty years like a first lien mortgage.
Secondary Mortgage vs.Home Equity Line of Credit
The nice thing about a HELOC is that it provides flexibility. Say, for example, that you want to borrow against your home equity for a number of home fix-up projects you plan to take on. Instead of borrowing one big lump sum all at once, the HELOC allows you to borrow smaller sums as you need them over time and pay them back - so you're only paying interest on whatever you've borrowed, not the maximum you can take out.
A second mortgage, on the other hand, is nice for when you need just one lump of cash for a single purpose. For example, instead of a number of do-it-yourself projects, suppose you're hiring a contractor for one large project, such as adding an extra room. You take out a single loan to pay the entire cost. The interest rate is typically lower than on a HELOC, and you can get a fixed rate as well, while the rate on a HELOC tends to fluctuate over time. However, you have to make sure you borrow enough up front to cover the cost of whatever you're planning to finance - unlike a HELOC, you can't dip back in for more cash if you run out of money.
Lenders have tightened up their lending standards over the past year, particularly for second mortgages and HELOCs. In many cases, you're likely to find lenders won't authorize any loans that, when combined with the balance on your primary mortgage, go beyond 70 percent of your home equity. So to qualify, you're going to need significant equity in your home to begin with. But if you can meet that standard, it's still possible to get a home equity loan to finance a home improvement, education costs, investments or other major expenditures you wish to pursue.
A second mortgage, on the other hand, is nice for when you need just one lump of cash for a single purpose. For example, instead of a number of do-it-yourself projects, suppose you're hiring a contractor for one large project, such as adding an extra room. You take out a single loan to pay the entire cost. The interest rate is typically lower than on a HELOC, and you can get a fixed rate as well, while the rate on a HELOC tends to fluctuate over time. However, you have to make sure you borrow enough up front to cover the cost of whatever you're planning to finance - unlike a HELOC, you can't dip back in for more cash if you run out of money.
Lenders have tightened up their lending standards over the past year, particularly for second mortgages and HELOCs. In many cases, you're likely to find lenders won't authorize any loans that, when combined with the balance on your primary mortgage, go beyond 70 percent of your home equity. So to qualify, you're going to need significant equity in your home to begin with. But if you can meet that standard, it's still possible to get a home equity loan to finance a home improvement, education costs, investments or other major expenditures you wish to pursue.
Equity vs. Credit Card Debt
I have a mortgage balance left of only $18k at 5.75%. Problem is I really need to get some cash equity out of this house to eliminate 30-40K of credit card debt.
My fiancee, (now wife) has worked for my company receiving annual 1099’s for around 30-35k with little to no debt. Both of our names are on the deed to this property. Is it possible to do a cash out refi in one or both of our names? Or prehaps a debt consolidation loan or HELOC?
The first thing in the continual tightening of the guidelines is for self-employed individuals. Lenders and underwriters are required to calculate two full years of tax returns and profit and loss statements. We use the adjusted gross income, but can add back in depreciation. Also, on a cash out refinance, you will pay a premium to the interest rate and/or points if your credit score is under 720. We would be happy to evaluate your loan if contact our office as our job is to say yes on every loan. With the current lending environment, a lender almost needs to take a blood sample in addition to receiving all of your documentation.
My fiancee, (now wife) has worked for my company receiving annual 1099’s for around 30-35k with little to no debt. Both of our names are on the deed to this property. Is it possible to do a cash out refi in one or both of our names? Or prehaps a debt consolidation loan or HELOC?
The first thing in the continual tightening of the guidelines is for self-employed individuals. Lenders and underwriters are required to calculate two full years of tax returns and profit and loss statements. We use the adjusted gross income, but can add back in depreciation. Also, on a cash out refinance, you will pay a premium to the interest rate and/or points if your credit score is under 720. We would be happy to evaluate your loan if contact our office as our job is to say yes on every loan. With the current lending environment, a lender almost needs to take a blood sample in addition to receiving all of your documentation.
Home Equity loans- The Three Main Types of Home Improvement Refinancing
When considering home improvement plans, the first thing we usually notice is how much the project will cost to complete it.
When coming up with the cost, you must factor in charges, fees, taxes assessed, and the monthly payment amount. There are many home improvement loans available from lenders today.
Most companies now offer customization of home improvement loans to help be more competitive in the hopes of you choosing them for your financing needs. There are various ways in which you can finance your home for improvements to be made.
Getting together with different financial institutions and discussing your needs and what they can offer you is a great place to begin.You will need to know your income total, your credit history and rating, amount of debt you have acquired and your total assets. This will give the institutions more insight into what they can provide for you.
When coming up with the cost, you must factor in charges, fees, taxes assessed, and the monthly payment amount. There are many home improvement loans available from lenders today.
Most companies now offer customization of home improvement loans to help be more competitive in the hopes of you choosing them for your financing needs. There are various ways in which you can finance your home for improvements to be made.
Getting together with different financial institutions and discussing your needs and what they can offer you is a great place to begin.You will need to know your income total, your credit history and rating, amount of debt you have acquired and your total assets. This will give the institutions more insight into what they can provide for you.
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