Category Archives: Finance

4 Ways to Have Better Credit Score

Credit ReportThe credit score is one of the most important factors you have for you to be able to access financial assistance from banking institutions. If you have a good credit score, you are more likely to be able to have your credit card or personal loans approved.

A bad credit score is not the most helpful thing to have when you have financial difficulty. The following are ways you can do to improve your credit score.

Get a mortgage

It may seem like getting a mortgage is the antithesis of boosting your credit score. But it actually is quite helpful especially when you have a history of paying your monthly dues on time. Apart from that, it also has tax benefits, reins in the financial impact of asset depreciation and lessens the risks.

Get a Utah mortgage from firms such as Altius Mortgage Group to get these advantages.

Eliminate credit card balance

One of the things considered in determining the score is the balance of your credit cards. If you have money to pay these balances off, settle them right away to have better chances of having an improved credit score.

Put old debt on report

If you were able to pay off your old debt on time, it would be positive for you to put that on your credit report. This will improve your chances to get a loan approved.

Pay your bills on time

Always pay your bills on time. This is to ensure that the credit score is not too low and so that your credit history is flawless.

Whether you are going to apply for a loan to help you with financial difficulty or you are trying to make a big purchase, a good credit score will do a lot in giving you financial security. This should be enough reason for you to make it an endeavor to have a better credit score.

Is it Hard to Secure a Construction Loan?

Money, calculator and contract focused with house blurred backgroundIf you value customization over convenience, building your home from the ground up is better than buying an already existing one. New home construction projects are actually not uncommon in the North Star State. Despite the additional costs, many homeowners choose to build instead of buying to bring the home up to code successfully. Like a blank canvas, a vacant piece of land offers countless design possibilities.

The only challenge to those who tackle new home construction in Lakeville, MN, and nearby areas are obtaining a favorable mortgage to fund your project. Here’s why it can be hard to secure a construction loan:

Stakes Are Extraordinarily High

Most lenders are reluctant to loan a considerable sum of money for a property that doesn’t exist yet. The construction process is full of uncertainty, making it an extremely risky endeavor. If things don’t go as planned, the lender might find it difficult to recoup the money even if the piece of real estate is used as a collateral. In the end, absorbing significant financial losses is highly probable.

Strong Lender Relationship Is Important

Considering most lenders don’t aggressively market high-risk construction loans, the ones that are likely to provide you with the funding are those that are already known to you. Talk to financial institutions, such as banks and credit unions, which you’ve already established relationships with. Not only they increase your chances of approval, they are likely to offer lower interest rates as well.

Large Down Payment Is Necessary

Even if you manage you find a willing lender, don’t expect the mortgage to finance the entirety of your project. To reduce the risk of your new home construction project, the lender may only offer to cover 80% of the expenses — or even less. Be ready to put down at least 20% of the project’s overall cost to get it off the ground.

Don’t let the scarcity of construction loan providers discourage you from realizing your goal of building your dream home from scratch. Take your time to explore the available financial products and study your options to identify the most favorable ones.

How Business Owners Can Save on Overhead Costs

A money box and electronic calculatorAs a business owner, you should always find ways to reduce your overhead costs without sacrificing the quality and value of your services or products. There are ways to reduce your operating expenses while maintaining every aspect of your company that keeps customers happy.

Consider a Modern Workspace

If you operate a smaller business, consider the benefits of a modern workspace. A virtual workspace allows you numerous modern benefits, including a reputable address and phone number, and even a secretary who will answer customer calls for you.

Contact a company that offers virtual office franchise services in your area for assistance, such as Venture X.

Sublet Your Extra Space

If you have extra office space that goes unused, it is a waste of resources. Unfortunately, many new startup companies find themselves locked into 3 or even 5-year lease terms, making it impossible to move on and find a space that is better suited to their needs.

Fortunately, you can reduce overhead costs and wasted space by subletting the unused office space.

Switch to Electronic Paperwork

It costs money to store paper files. Paperwork takes up space in your office, and you lose time and money when you have to dig through stacks of paper to find what you need. Rather than investing in a space with a storage space or digging through files, switch to electronic paperwork.

Aside from reducing overhead costs, you will also save at least a few trees.

Control Purchases You Make

Another way to reduce overhead costs is to reduce the purchases you make. Evaluate every purchase made to determine if it is necessary. If you find that it is something you can go without, skip it. Also, look into alternatives to what you want to buy to see if there is a cheaper option.

Controlling your purchases can save you money and reduce overhead costs greatly.

You will find that once you reduce your overhead costs, your profitability will increase. You need to improve your profitability to succeed as a business owner in this day and age.

Buying a Boat on Black Friday Offers More Than Just Discounts

mature man driving speedboatBlack Friday may be over and for those who decided to buy a boat, the advantages of doing so on this day involve more than just discounts.

Aside from saving money, shopping for a new boat in late November often allows you to choose from different models. That is because most retailers seek to clear their summer inventories before stocking on the following year’s new models.

Inventory sale

Since most sellers aim to clear their inventories to make room for new boats, this will prompt them to offer attractive prices that you otherwise were unable to afford during the boating season in the middle of the year.

Even if you live in states such as California where there are no off-peak times, you may still find several dealerships that want to get their hands off old models. In states with cold weather, a purchase during the holiday season provides you with more time to customize your boat before using it in spring. Take note that you should not use basic household products such as bleach to maintain your boat, which seems to be a common practice.

First dibs

If you have some money to spare, you may also be able to afford new models that are due to be launched in the following year. The winter season often marks the start of boat shows nationwide. Boat manufacturers aim to take advantage of holiday spending by offering discounted top-of-the-line boats.

Boat shops also sell various accessories, including a custom boat cover at an affordable cost. The cost for these ancillary products also goes down during Black Friday. If you dislike shopping along with many people, you can take relief that not many Americans go to boat shops on this day.

With all the advantages of buying a boat during Black Friday, do you think there are other days that are better to make a purchase?

Types of Adjustable Rate Mortgages

MortgageThere are various mortgages on the market for homebuyers. One of the popular options is an adjustable rate mortgage (ARM), which is also known as a floating rate or variable rate mortgage.

In an ARM, your interest rate varies over the life of your mortgage. The rate is reset periodically based on a scale known as an ARM margin. Depending on your mortgage lender in Lake Oswego, an ARM can take different forms.

Here are the most common types of adjustable rate mortgages:

Hybrid ARM

This is a mix of adjustable and fixed-rate period loans. Hybrid ARMs have a fixed interest rate for a specific period after which the rate varies. They are often advertised in two digits. The first figure indicates the period for a fixed interest rate while the second indicates how often the rate will change. A 5/1 loan, for instance, means a fixed interest rate term of 5 years and an annual adjustable rate after that.

Interest-Only ARM

The payment plan of an interest-only ARM allows the borrower to pay interest only for a specified term. The loan has small monthly payments initially, but these increase once you start repaying the principal and interest. The interest rates adjust throughout the loan term.

Payment-Option ARM

This option allows the borrowers to choose the best payment option for them. A conventional payment option means you pay the interest and principal over a set period. You can also opt for a limited payment. With this option, you may pay a lesser amount than the interest you owe. The balance is however added to your principal; therefore, increasing your loan amount and subsequently, your future monthly loan payments.

Depending on prevailing interest rates, you might end up with low-interest rates in an ARM. The initial interest rates are also lower than other mortgage rates. In addition, you can make higher loan payments during the fixed period to reduce your principal.

Understanding Your Credit Score and Mortgage Application

Credit Score ReportYour credit score is one important factor that can affect the interest rate of your mortgage and your eligibility to get a loan. You can improve your chances of getting a better mortgage by boosting your score, staying current on your payments, and paying some of your debts. Note that some portions of the score depend on how much debt you have and whether or not you pay your bills on time.

Where Should You Start?

Know your score by getting a free report and checking it for errors. If you find some, submit a request to the fix the mistakes. It is ideal to do this before you apply for a home loan, as investigating disputes can take up to 30 days or more. According to the Consumer Financial Protection Bureau, reporting agencies will notify you of the results five days after they finish the investigation.

Should You Apply Now?

Lenders offering mortgages in Utah note that if your score is 740 or more, you can qualify for the best interest rates. Good credit score means saving thousands on your home loan. If it is, however, below 700, you will have to pay more interest on your mortgage. Note that many lenders prefer borrowers with a stable history of on-time payments as well as low balances.

Is it Better to Apply in the Future?

If you have a low score, you can put off buying to save more money and improve your credit rating. Good credit habits include paying credit card debts, paying bills on time, and keeping balances low. If you keep up with these practices, you can see an improvement in your score. Note that improved credit can help you save up to $100 on a normal monthly loan payment.

Focus on improving your score to get better loans and rates. Be sure to avoid making large purchases on credit before you apply for a mortgage or close on a house, as this can negatively affect your chances of getting a loan.

4 Quick Tips For First-Time Homebuyers

Old Couple In Front Of The House With Sold SignFor first-time homebuyers, buying a home can be a challenge. The challenges that go with buying a house go beyond choosing one with the best interior design and curb appeal. Check out these four quick tips on how to get a good deal.

Choose the right type of mortgage

Having the right type of mortgage is important. Work with the best mortgage company in Utah to get the most convenient rates and terms at the lowest closing cost. Your lender should provide first-time homebuyers quick and efficient ways to move in.

Mind your credit rating

Credit score and rating are two important factors when taking a mortgage loan. First-time homebuyers should keep their credit scores on the good side. They should aim to improve their credit rating and correct any errors that might affect their credibility as borrowers.

Secure the down payment early on

As a rule of thumb, first-time homebuyers should start saving early for their down payment. Paying a higher down payment can lower the costs. If this is not possible, there are plenty of down payment options, such as the federal mortgage programs and other similar programs provided by the state or the county.

Consider quality over price

In some cases, cheaper houses turn out to cost more due to major repairs and maintenance that do not become visible after the move-in period. While it’s advisable to save some cash for the move-in and do some basic shopping, it would be better to spend less on maintenance and repair.

First-time homebuyers should do their research to know what type of property is best for them. Looking for several mortgage options is also important to help you compare the rates and find the most convenient one.

Do You Know Enough About Insurance?

A couple discussing their insuranceFor many people in the United States, insurance is often needed for most everything in their daily lives. From homes, vehicles, to any kind of property, insurance is an essential feature of their daily life. However, the experts at Haffner Law say it’s essential to find the right insurance company. In Los Angeles, only lawyers with an expertise in bad faith insurance cases can help you.

Why do you need insurance?

Insurance is a way of being able to manage particular risks. Since nobody knows what the future holds, there is always the possibility of loss. A potential loss can affect you financially, but when you have insurance, you pass the cost of that loss to your insurer. Of course, that coverage also comes with a price. Your insurance company looks for secure forms of investment to make sure your money grows, and that the company can afford to pay your claim.

What can insurance cover?

There are different insurance policies to cover different needs. For example, when you buy a house, your mortgage lender is likely to require that the house should have insurance coverage.

Auto insurance lets you drive your vehicle. Without it, you have to pay out of pocket for repairs in case of an accident, legal costs, etc. Without insurance, if your car gets stolen, you will not be compensated. With insurance, you can receive payment for the market value of the car at the time it was stolen.

The risks of ownership of a business can be covered by insurance. Insurance can cover healthcare costs, as well as provide for your family in case of death or disability.

What happens if the insurance company refuses to pay?

If you file a claim and the insurance company refuses to pay out, you may have a case against the insurance company. This situation is called “bad faith insurance”, in which the insurance company refuses to pay what they owe you. You need a bad faith lawyer in Los Angeles to help recover what is yours.

Insurance is an important part of living with peace of mind. Think about keeping yourself, your properties, and your family safe.

Coin Collection: Preserving Culture and History in a Small Piece

Coin Collection

Coins are more than just pieces of metal that possess significant values. They hold rich history and culture and can be perceived as something tangible that has survived the test of time. Hence, it is no wonder why people are into the hobby of coin collecting.

If you plan on entering this hobby but do not know where to start, these might be the help you need:

Have a budget

Whether you plan on collecting gold or silver coins, having a budget to fund your hobby is necessary. The good news? It need not be as enormous as you expect it to be. Atkinsons Bullion says that you can start by checking your loose change and see which series, years, or types of coin interests you and then take it slowly from there. A mere five dollars can give you an enormous collection of time.

Know what you want

The key in collecting coins is knowing what you want. It is not enough to have a metal of your choice. In other words, learn how to specialise.

Read and study

Do not be fooled into paying for something that is not worth it simply because you are not familiar with the grade and value of the coins you are planning to buy. The best way to avoid these unfortunate instances is to read and study the ins and outs of coin collecting. There are many books and articles on the web that can help you get through this phase.

Mingle with other coin collectors

Another effective way to learn more about coins is to mingle with fellow coin collectors. Exchange of knowledge and information is always an effective way to learn more.

Coin collection is a hobby practised even decades back. Be among this group of people that preserve the history and the culture through coin collection.

When Refinancing: Should You Shorten the Loan Term?

Mortgage LenderIn an ideal world, homebuyers wouldn’t need a mortgage to finance a purchase. They could easily pay in full cash and not worry about interest rates and monthly loan payments. The sad part is, this is far from reality. Potential homebuyers don’t have enough savings to buy a home in cash, so most resort into getting a mortgage.

The 30-year loan is widespread, but 15- and 20-year mortgages are now becoming common. These are popular for those who are nearing retirement and want to have peace of mind in their golden years. Mortgage lenders in Utah note that a shorter loan has the benefits of paying off the mortgage earlier and cutting interest rates.

Higher Payments

The only downside to this is having higher monthly payments. This would limit your cash flow or force you to cut back on other household expenses. Making the decision is hard, especially if you don’t have a sizeable income. You would also constantly wonder if your money could be better spent on something else like a retirement plan.

Your Age Matters

Financial experts think that it’s okay for young homeowners not to pay their home loan earlier. They think it is better to concentrate on funding a retirement plan. Those 45 or 50 and above should be focused on paying off the mortgage. If you, however, are nearing retirement, paying off the house will only be a good idea if it will not affect much of your savings.

The Goal is to Save More

A refinance should help you save more. While most think that refinancing is ideal when the rates are lower than what you have, assess carefully if the lower rates will compensate for the closing costs. It is also important to think about on how long you plan to stay in the home.

If you think that refinancing to a shorter term is right for you, contact a lender to learn more about it. If you, however, are worried about higher monthly mortgage payments, you can choose the option of making extra payments on your current loan. You just have to be disciplined in doing so.