Saturday, March 18, 2006

Understanding Finance To Make Your Life Easier

Kathleen Sutera

What is finance and what do you need to know? Finance can mean different things. It may refer to your personal financial situation. It could refer to your investments or a business's investments. It could refer to a credit or loan purchase.

Financing can be involved in your life in different ways. For example, if you are going to invest in a large purchase such as a house or even a car. Large furniture purchases and credit cards all fall into these categories. Interest rates are the most integral part of financing. Why else would a company want to loan you money or offer you credit? How else would they benefit? They benefit from the interest that you have to pay in on financing your loan. There are different types of financing options available.

The percentage rate is the amount of interest that you pay. The percentage rate is the certain portion of your loan or credit that you pay back in interest. For example, if your loan was for $40,000 and your interest rate was 12.3% then you would pay 12.3% of $40,000 in interest. The interest would be added onto your $40,000 and you would pay it back via your monthly payments.

Fixed rate: A fixed rate means your interest rate will stay the same no matter what. People usually prefer these. If you can get a low fixed rate, it will stay with you even if other average interest rates are going up. Balloon rate: A balloon rate can fluctuate with the times and the stock market but depending on the situation, this can be beneficial to you as well. You will have to decide which you think is best for you.

There are different types of financing options as we mentioned earlier. Probably the most common example of finance in the United States is credit cards. A credit card allows you to make purchases with the card. The bank issuing the card will pay on your behalf and you then pay the bank back, plus the interest. The bank makes money off the interest and you get what you want right away.

The same thing applies to pay-as-you-go or rental furniture companies. There are even rent-to-own housing services now where your monthly rent can go towards buying the house if you want to stay. Financing should be a way to help you achieve something that you're going to be purchasing anyway. Financing can get you in your house quicker than saving up the cash. Become knowledgable and financing can be a tool that will serve you well.

http://www.financeh.com

About The Author

Kathleen Sutera has created an all inclusive website for Everything About Finance:
http://www.financeh.com

kathleen@financeh.com

Dobler Consulting Inc
2339 Warwick Dr
Oldsmar
FL 34677
United States



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Friday, March 17, 2006

Understanding Bridging Finance

Commercial Lifeline

Bridging finance, also referred to as "bridge loans" and "bridging loans", have nothing at all to do with re-constructing the London Bridge. Bridging finance is typically a short-term loan that a business uses to supply cash for a real estate transaction until permanent financing can be arranged. The word "bridge" conveys the fact that the loan is designed to get you over a temporary obstacle. A typical use for a bridge loan is to cover situations such as when a company needs to close on a new office building before having sold their old one. They would use the proceeds of the bridge loan to continue making payments on the old building until it is sold.

Bridging finance almost always requires that you pledge some sort of collateral as security against the loan. You could offer up commercial or private real estate that you own,or are in the process of buying, machinery and office equipment or even existing inventory. If you have outstanding business and personal credit, as well as an outstanding relationship with your lender, you might be able to secure your bridge loans on just a signature.

Because the need for bridging finance sometimes arises suddenly and without warning, it is a good idea to establish a relationship with a lender before the actual need arises. When you do this you can arrange to be pre-approved for a specified loan limit. Later, when the need suddenly arises, you won't have to wade through all of the red tape. The typical term for a bridge loan runs from a fortnight to as long as two years. Of course, any terms can be negotiated and a motivated lender will work hard to match your needs.

Since bridging finance usually lasts for a relatively short period you may find that the interest rate you are being asked to pay is slightly higher than a more conventional type of loan. Lenders make their profit by charging interest across the life of the loan. The shorter the loan period the less interest they earn. As a result many lenders will often boost the rate by a 1/2 point or more. In general, the length of the loan, the amount of risk that is present for the lender, the quality of your credit history and the liquidity and value of your collateral all are used to help determine the interest rate.

Your best bet for securing a bridge loan at the most favourable rates and terms is to work with a qualified UK Commercial Mortgage Broker who understands the ins and outs of bridge loans. That way you can get your application in front of as many lenders as possible and end up with several who are willing to compete for your business.

About The Author

Commercial Lifeline http://www.Commercial-Lifeline.co.uk are Commercial Mortgage and Bridging Finance specialists.

This article comes with reprint rights. Feel free to reprint and distribute as you like. All that we ask is that you do not make any changes, that this resource text is included, and that the links above are intact.

articles@commercial-lifeline.co.uk

Dobler Consulting Inc
2339 Warwick Dr
Oldsmar
FL 34677
United States



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Thursday, March 16, 2006

Understanding Basic Finance Terms

Ryan Fyfe

If your like many, you don't always understand what people are talking about when it comes to loans. Without understanding the basic terminology when it comes to loans you just aren't setting yourself up right to make an educated decision when it comes to applying for a loan. There are hundreds of terms; Below are some of the most important:

Assets
Assets can be described as anything that holds value. Assets can be all types of things from cars to houses. Assets can be used in helping to build credit. For example if you are applying for a house loan, you might use your car as an asset, to show that if you default on a payment, that you have assets to fall back upon such as your car.

Capital
Capital can be a bit of tricky term as it can be used in several different situations to do with finances. Capital can be described as the assets that are available for use towards creating further assets; it can also apply to the cash in reserve, savings, property, or goods.

Debt
Debt is amount of money or something of value that is borrowed from a person referred to as a debtor. Usually a debt that is borrowed will carry some type of penalty along with the payback such as an interest, or service.

Debt Consolidation
Debt Consolidation is replacing multiple loans with a single loan that is normally secured on property. This can often reduce your (the borrowers) monthly outgoing interest payments by paying only one loan which is secured on the property sometimes over a longer term. Because the loan is secured, the interest rate will generally be considerably lower.

Equity
Equity is the difference between the value of a product (for example a house) and the amount that is owed on it.

Liabilities
Liabilities refers to the sum of all outstanding debts in which a company or individual owes to it's debtors.

Principal
Principal is used to describe the amount of money that is borrowed without including any interest or additional fee's.

Term
Term refers to the length of a debt agreement. For example if you were to take out a loan for a house over 10 years. 10 years would be the term.

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Feel free to reprint this article as long as you keep the following caption and author biography in tact with all hyperlinks.

About the Author

Ryan Fyfe is the owner and operator of Loans Area. Which is a great web directory and information center on Loans and related issues like Debt consolidation and Credit issues.

Dobler Consulting Inc
2339 Warwick Dr
Oldsmar
FL 34677
United States



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Wednesday, March 15, 2006

To Refinance...or Not, That Is The Question???

Hilda Schultze

What does it mean to refinance? Why would someone want to refinance? There are many cases when a person
would refinance. When we use the term refinance, we are
typically referring to a loan such as a car or house loan.
It may also be a business loan. For the purpose of this
article, we are going to discuss the home loan but most
of the same rules of refinancing apply to other types of
loans as well.

Refinancing your home can be defined as the process of
applying for a new mortgage, and using the money you receive
to close out your older mortgage. Many homeowners already
take full advantage of this, because they are sometimes able
to find a mortgage loan at a better interest rate. With the
help of this, they can pay off their mortgage much sooner,
and ultimately have a lower amount to pay back.

Because a refinance plan essentially amounts to taking
out a new mortgage and closing out the former mortgage,
the steps involved resemble those involved in taking out
your original mortgage. It is important to bear in mind
therefore that the process will likely involve at least
some of the same expenses, because of this. But considering
the vast amount of money that refinancing can save you,
homeowners find that it is often well worth the trouble.
Some people may even choose to save up a certain amount
of money and apply as a 'down-payment' on the sum that
they refinance. They can then refinance a lower amount
and the payments will be lower.

Of course, the most popular reason to refinance is so
that homeowners can secure a lower interest rate and
therefore pay lower repayments each month. If the interest
rate that you received on your mortgage is higher than
current interest rates, you will probably want to consider
the benefits of refinancing. This means that even if your
refinanced mortgage is for the same amount as your
original mortgage, the lower interest rate means a total
lowered cost to you. Often a long-term loan will have a
large amount of interest and you may spend years paying
off just the interest and not paying the principal.

Of course, when you refinance, it will result in smaller
monthly mortgage payments for you and your family.
This basically gives you more liberty every month, and
much better security financially. Research refinancing
options today, and begin saving on your home mortgage! You
may want the help of mortgage broker to consult with to
access available options.

Hilda Schultze
http://www.refinancectr.com
Refinance Ctra resource for Refinance related information.


About the Author

The author, Hilda Schultze is the webmaster of
Refinance Ctra one stop website for Refinance related information.

Dobler Consulting Inc
2339 Warwick Dr
Oldsmar
FL 34677
United States



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Tuesday, March 14, 2006

To Refinance... or Not, That Is The Question??

Hilda Schultze

What does it mean to refinance? Why would someone want to refinance? There are many cases when a person would refinance. When we use the term refinance, we are typically referring to a loan such as a car or house loan. It may also be a business loan. For the purpose of this article, we are going to discuss the home loan but most of the same rules of refinancing apply to other types of loans as well.

Refinancing your home can be defined as the process of applying for a new mortgage, and using the money you receive to close out your older mortgage. Many homeowners already take full advantage of this, because they are sometimes able to find a mortgage loan at a better interest rate. With the help of this, they can pay off their mortgage much sooner, and ultimately have a lower amount to pay back.

Because a refinance plan essentially amounts to taking out a new mortgage and closing out the former mortgage, the steps involved resemble those involved in taking out your original mortgage. It is important to bear in mind therefore that the process will likely involve at least some of the same expenses, because of this. But considering the vast amount of money that refinancing can save you, homeowners find that it is often well worth the trouble. Some people may even choose to save up a certain amount of money and apply as a 'down-payment' on the sum that they refinance. They can then refinance a lower amount and the payments will be lower.

Of course, the most popular reason to refinance is so that homeowners can secure a lower interest rate and therefore pay lower repayments each month. If the interest rate that you received on your mortgage is higher than current interest rates, you will probably want to consider the benefits of refinancing. This means that even if your refinanced mortgage is for the same amount as your original mortgage, the lower interest rate means a total lowered cost to you. Often a long-term loan will have a large amount of interest and you may spend years paying off just the interest and not paying the principal.

Of course, when you refinance, it will result in smaller monthly mortgage payments for you and your family. This basically gives you more liberty every month, and much better security financially. Research refinancing options today, and begin saving on your home mortgage! You may want the help of mortgage broker to consult with to access available options.

About The Author

The author, Hilda Schultze is the webmaster of http://www.refinancectr.com. Refinance Ctr-a one stop shop for Refinance related information.

hilda@refinancectr.com

Dobler Consulting Inc
2339 Warwick Dr
Oldsmar
FL 34677
United States



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Monday, March 13, 2006

Top 10+ Ways to Jumpstart your New Year's Finances!

Cindy Morus

Of course, these don't have to be done in any particular order!

Just pick one or two that particularly apply to your situation.

  • Create your 2004 filing system. This might include new file folders, a new box to hold them or space in a filing cabinet with easy access.

  • Set up a folder to collect all the important 2003 tax documents which will be arriving soon. Sure to arrive at your house are W-2s, 1099s, mortgage statements, etc.

  • Set up an appointment with your tax professional early so you get the appointment of your choice. This also gives you a deadline to get your information ready! If you're self-employed, the next quarterly estimated tax payment will be due on January 15.

  • Review last year's investments especially in your 401(k), IRA's etc. Find out what financial planning resources your company or 401(k) plan administrator offers and set up an appointment to talk to them. For non-company portfolios, talk to your investment advisor. You have until April 15 to make contributions to IRA type accounts (check with your tax preparer for eligibility).

  • What about Quicken or Microsoft Money? If you don't use software to balance your checkbook, pay your bills and keep track of your savings and investments, this is a great time of the year to get started. My personal favorite is Quicken and for small businesses, you might consider Quicken Home and Business. If you are a small business with Payroll needs, check out QuickBooks.

  • Medical Insurance reimbursements. If you haven't submitted all your medical bills to your insurance provider, now is the time to do so.

  • Will and Estate Planning. No one likes to think about dying, but the best thing you can do for your family is to make sure they are taken care of by creating a will and making sure you have adequate life insurance. Think how easily you'll sleep knowing you have provided for your family even if you are no longer there.

  • Speaking of insurance‚Ķ If you haven't reviewed your health or home and auto policies in the last couple of years you might find you can save money and/or have better coverage. For example, if you still have a $250 deductible (which was my first deductible in 1979!), you will probably save by increasing it to $500 or $1000. Try to set aside some of your savings for deductibles in case you need them.

  • Create your own Anti-Emergency Fund! We all know those car and home repairs, school fees, medical expenses and vacations are going to happen. Why not determine how much you'll need and save 1/12 of it each month? To read more go to: http://www.phelps-creek.com/archives/Anti-Emergency.htm.

  • Holiday Bonus or Money Gifts If you received a financial gift this holiday season, hold on to it for at least 30 days while you decide what you really want to spend it on. All too often financial windfalls are spent before they even arrive. Consider dividing it into thirds: 1/3 to the past, 1/3 to the present and 1/3 to the future. Past might include paying down debt, present could be something you need or want now and future could be retirement, college savings, or a special vacation

  • Financial Goals for next year. Think about where you want to be next year at this time financially. If you want to save $1000, put aside $2.74 each day and you'll be there! Break down your financial goals into monthly, weekly and daily amounts and watch how quickly your savings will grow. Read more about it at: http://www.phelps-creek.com/archives/PDQFactor.htm.

Happy New Year!!!!!

(c) Phelps Creek Financial Coaching - All Rights Reserved

About The Author

Cindy Morus (www.cindymorus.com) is a Certified Financial Recovery Counselor specializing in showing women and their families how to achieve financial well-being and peace of mind. She is also a Certified Credit Report Reviewer. Contact her at 541-387-2995 or cindy@cindymorus.com. Sign up for the "Get Ready to be Rich!" teleclass community for FREE for 30 days at www.phelps-creek.com/riches.htm!

Attention Ezine editors/Site owners: Feel free to reprint this article in its entirety in your ezine or website as long as you leave all links in place, do not alter the content and include our resource box as listed above. If you do use the material please send us a note (cindy@cindymorus.com) so we can take a look. Thanks.

cmorus@phelps-creek.com

Dobler Consulting Inc
2339 Warwick Dr
Oldsmar
FL 34677
United States



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Sunday, March 12, 2006

Tips on How to Refinance

Tony

Refinance Mortgage


Loan - Getting a refinance mortgage loan is a smart move for any
homebuyer. This is especially true if the interest rates are low. In the world
of finance, interest rates directly affect the way mortgage rates behave. So if
the interest rates are low, then mortgage rates will also be low. Low mortgage
rates in turn lead to bigger savings from your monthly payments. And with a
refinance mortgage loan, you can take advantage of this basic financing concept
and reduce your monthly repayments while at the same time, increase your
monthly savings. Another important benefit of refinance mortgage loans is that
gives the borrower more flexibility. It allows you to change loan terms from a
long one to something shorter. In this way, you can pay off the principal more
quickly, thus saving you from the total interest charges.


Some Tips on How to Refinance



  • Make sure that the drop in interest rates is enough to make a
    refinance mortgage loan worthwhile
  • To determine if refinancing will save you money, compare the total
    costs to refinance, as well as interest rates
  • Generally, the lower the interest rate, the more points the lending
    institution will charge
  • While shopping around for a lender, ask each for a list of charges
    and costs you must pay at closing
  • A lower interest rate gives you less interest to deduct on your
    income tax, which may increase your tax payments and decrease your total
    savings from refinancing

How much will it cost to refinance your mortgage?


A refinance mortgage loan generally means paying off your original
mortgage by signing a new loan. Your refinance mortgage loan acts like your
typical mortgage loan. That means that you pay most of the same costs you paid
to get your original mortgage. These can include settlement costs, discount
points, and other fees. There may also be a penalty charged for paying off your
original loan early, although some states prohibit this.


Having said that, the total expense of a refinance mortgage loan depends
on all those factors - interest rate, number of points, and other costs.
Lenders will charge several points in order to offer you the lowest rates. With
these, the total cost can run between three and six percent of the total amount
you borrow. So, for instance, you borrowed $100,000 on a refinance mortgage
loan. For this amount, the lender may charge you between $3,000 and $6,000.
However, some lenders may offer zero points at a higher interest rate, which
may significantly reduce your initial costs, although your payments may be
somewhat higher.

Tony Forster has a keen interest in living debt free having been "up to his ears" before realizing the need to take control. He has compiled an online financial article resource at http://www.loan4payday.info

Dobler Consulting Inc
2339 Warwick Dr
Oldsmar
FL 34677
United States



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