Making a down payment on a house could be your biggest investment you make. Now there is a way to protect that investment.
Private Mortgage Insurance (PMI) is a method of protecting lenders from risk if you put down a lower down payment on a home (typically less than 20%). The PMI principle assumes that
Borrowing
While the term ‘refinance’ is most often used with mortgages, it can apply to any type of loan. Many borrowers have taken advantage of low interest rates to refinance their home loans, but some have also refinanced their auto loans, student loans, and even credit card debt via a home consolidation loan. For some, even
Homeowners who have retired or who are close to retiring and still have a mortgage may have concerns about their finances. While many do pay off their mortgage before retiring, those who purchased a home later in life with a 30-year mortgage or who have had to refinance their home for some reason may find
For many homeowners, paying off a mortgage occurs only once in their lifetime. Taking on a large debt, especially one that lasts for thirty years, is a substantial commitment that deserves to be celebrated once it’s over. However, once the celebration is done, it’s important that homeowners take the time to make certain that they
Bank of America (BoA) has reported 2016 first quarter earnings from mortgage banking as $433 million, a decline from their $694 million in the first quarter of 2015. This is due to the bank selling fewer secondary market loans, Chief Financial Officer Paul Donofrio reports.
Donofrio explained that the bank’s strategy is to place more
At various times in life, your mortgage can seem overwhelming – either from the size of the monthly payments or the overall amount of interest you will pay. If you are looking for methods to save either way, here are a few suggestions:
Consider Refinancing – Fixed interest rates are going up again, but they
Homeowners rarely think about dying when they apply for a mortgage, but legal experts urge buyers, especially older buyers, to learn about what happens to their loan and their property if they die before the balance is paid in full. Bernard A. Krooks, an elder law expert, stresses that seniors need to be informed so
You are struggling just to pay your monthly bills, not to mention dealing with the occasional car breakdown, home maintenance item, or unexpected medical bill. You have had to resort to high-interest short-term payday loans to fill the gap, which puts you even further in debt. How can you even think about saving money in
Doctors, dentists, and many others who go into the medical field often graduate with high amounts of student loan debt that they have to begin paying back after six months of graduation. While they may not be making a large amount of money immediately following graduation and have a large amount of debt, they are
When most homebuyers sit down to calculate whether they can afford a particular home, they often assume their monthly mortgage payment will include only the principal and the interest. Many forget to factor in property taxes and their monthly homeowner’s insurance premium. This often leads borrowers to experience sticker shock when they see what a
When making a purchase using a credit card, consumers aren’t simply buying merchandise or paying for services from a merchant; instead, they are involving several third parties in the transaction. These third parties include the company that issued the credit card, the bank used by the merchant, and the network handling the transaction. All of
Freddie Mac and Fannie Mae have announced that as many as 50,000 homeowners may be eligible for mortgage balance reductions. The Federal Housing Finance Agency (FHFA) has approved the new plan that is aimed at helping those who are struggling to pay their monthly mortgage payments. However, many feel that the plan does not go
The Consumer Financial Protection Bureau (CFPB) will release new regulations aimed at the payday loan industry in the spring, the agency announced in January. These regulations will help to reduce consumer abuse.
Research by Pew Charitable Trusts shows that 12 million people make use of payday loans every year, with the fees on these loans
When you consider which home remodeling projects to tackle and which ones to shelve, it is wise to think about the payback potential. Which projects will increase the value of your home enough to recoup your investment potentially? Remodeling Magazine may be able to help you decide. They recently completed their 2015 lists of remodeling
The worldwide economic slowdown has begun to take a toll in yet another arena of worldwide finance: the default rate of corporate debt in emerging markets. Companies from emerging markets are defaulting on their debt at a rate of 3.8% — the highest level since 2009. Through November 2015, that represents an increase of 40%
If your credit is too poor to get a conventional loan to tide you over in tough economic times, where do you go for help? Payday loans cater to those with poor credit, but interest rates are notoriously high, and the whole payday loan industry is under increased regulatory scrutiny. Some states have banned them
Rapper 50 Cent is currently going through the unpleasant experience of personal bankruptcy. That’s right, the man named after money, the man who sang, “Have a baby by me baby be a millionaire,” is now in bankruptcy court. Like many before him in the entertainment industry, overspending and lifestyle issues put 50 Cent (real name:
Love or hate them, you cannot deny that the Consumer Finance Protection Bureau (CFPB) is doing its job with gusto. The CFPB has taken on multiple large companies and financial institutions, levying heavy fines like the nearly $800 million fine against Bank of America. We can now add Citibank to the growing list.
Citigroup will
How do you go from being on top of the world with a multimillion-dollar contract to filing for bankruptcy? By spending like it is never going to end. Former football superstars are finding that out the hard way.
Studies have shown that a high percentage of NFL players declare bankruptcy after their playing days, and
Unless you have been in an isolation tank for some time, you know that Donald Trump is running for President of the United States. He of the iconic hair is particularly sensitive to discussions about bankruptcy, as his operations have declared bankruptcy multiple times. While the Donald may not like it, it’s fair to ask
Ah, summertime. The weather warms up, the flowers bloom, and the flocks of home improvement scammers return for their annual summertime gathering.
Like other unwanted pests, shady home improvement contractors tend to show up in the spring and summertime offering services ranging from driveway sealing to chimney repair to roof replacement to a complete home
Banks constantly look to gain the loyalty of new customers. One great place for banks to find these ideal, new customers is at colleges, universities and other post-secondary educational institutions.
Students Make Easy Targets for Excessive Fees Unfortunately, students do not pay much attention to their finances, especially when it comes to the fine print
The massive salaries and endorsements of sports stars do not guarantee a comfortable life — evidence suggests the opposite is true for many pro athletes. Sports Illustrated estimated that a staggering 80% of retired NFL players end up broke within the first three years after retirement. Fortune magazine cites research from the National Bureau of
Celebrities and money management don’t always go together well. From the entertainment field to athletes to reality TV stars, celebrities arrive at their wealth and fame armed with a spectrum of spending habits and financial skills. Some inherently know how to handle their finances, and others hire trusted people to manage their funds for them.
Antoine Walker had the world by the tail in 1996. He was coming off a NCAA championship season with the Kentucky Wildcats and was chosen by the Boston Celtics as the sixth pick overall in the 1996 draft. Fourteen years later, he declared bankruptcy with assets of $4.28 million and $12.74 million in liabilities. Walker
You should be enjoying the fruits of your labor in your later years, not worrying about how to pay back debt. Unfortunately, too many seniors find themselves with high levels of debt and uncertainty about their future.
If you are in this situation or heading that way, consider these steps to reverse your slide into
Peer-to-peer lending, or P2P, has continued to grow in popularity as banks become a less attractive option for smaller businesses or consumers looking for mid-range to lower-level loans.
We discussed two of the best-known alternatives for personal loans (Lending Club and Prosper) in a previous article, but let’s take a look at a few of
The recent gains in home prices have helped some homeowners get out from “underwater”, a situation where the homeowner owes more on the home than it is worth. However, there are still far too many Americans in a negative equity position in their home.
Halfway through 2014, there were still around 5.3 million underwater homeowners,
You are ready to buy a home, but you cannot find a home that has all the features that are important to you. However, you have found the perfect plot of land on which to build your own dream home. That means you will soon be entering the world of land loans – loans that
In preparing for a financial audit or review, it is important to take a look at your year-end income statement balances as compared to the prior year balances. If there were large fluctuations, be prepared with explanations that are well thought-out.
Pay particular attention to accounts comprising your gross margin. How was this year’s sales