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Tag Archives: interest rates

Five More Reasons to Become Debt Free

freedom from debt

Everyone knows that paying off debt is a great way to build wealth and ensure that setbacks and emergencies won’t send you into a downward money spiral. For that reason alone, kicking debt to the curb is always a great idea. Since paying of consumer debt a few years ago, I’ve also discovered some new reasons to become debt free. Great Career Opportunities When we were working to pay off our credit cards, there was no way on earth Jim or I could have thought about changing jobs. We were too dependent on our paychecks to seek out or take advantage of other opportunities. In fact, I really didn’t see lots of opportunity other than one foot in front of the other. I’m not sure if they weren’t there or if I didn’t have the flexibility to see them, but I know changing jobs was not an option during that period of life. Now that we don’t have consumer debt, it seems that job offers are pouring from the rafters. Besides my full time offer from the government, Jim was asked to take on a new management position a few weeks ago. While we most likely won’t accept either of ...

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Buying A Home – Home Equity Loan or Mortgage?

    Home shoppers can easily get confused when they have to choose between home equality loans and mortgages for buying a home. While both options can be used to purchase the house, looking at the latest trends can help consumers to choose the better direction. Home equity loans are often confusing for first time users. Both normal home equity loans and home equity lines of credit are used to avoid private mortgage insurance at the time of purchase, but a home equity line of credit can also be utilized later for liquidity. Home Equity Loan – Latest Happenings This year, renowned banks and credit unions are developing interest in lines of credit and equity loans as home prices rise in different states and homeowners look to add some amount of equity. Credit reporting agency Experian reports that equity loans increased by 30% in the second quarter compared to the first quarter. However, consumers considering home equity should note that lending standards are now tighter than before. According to Bankrate, the home equity line average rate is 4.99% while the home equity loans average rate is 6.99%. Senior analyst at the source said that lenders aren’t acting as they did in the ...

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Getting the Best Variable Rate Home Loan

Buying a home is likely the biggest purchase one will make in a lifetime. Although there are people who buy homes with cash, most of us  need a mortgage to purchase our primary residence. There are many mortgage options depending on where you live and what you hope to accomplish with home ownership.A big decision to make when selecting a mortgage would be choosing one with payments you can afford for the entire time you plan to own the property. In some circumstances, a variable rate mortgage could be a good option. Variable vs Fixed Rate Mortgages In the US, most mortgages today are of the fixed rate variety, usually with either a 15 or 30 year term, although shorter terms are available. With a fixed rate mortgage, the interest rate is locked in for the entire term of the loan. This makes payments stable throughout the life of the mortgage. While that works well when interest rates are on the rise, if rates decrease, you are still locked in unless you refinance. As seen after the housing bubble crash in the US, refinancing is not always possible. In many countries, like Australia, Spain, or the UK, most mortgages are ...

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Getting a Loan if You Have a Bad Credit Rating

The following is a guest post. If you’d like to submit a guest post, please contact me.  Just because you have an adverse or bad credit rating doesn’t mean that it becomes impossible to borrow money. The main difference will be that it will cost you more because you are deemed to be a higher risk to lenders. That means a higher Annual Percentage Rate (APR) will be applied to the loan by poor credit lenders when compared to the APR on a personal loan for someone with a good credit rating. These rates, however, are still far lower and far more competitive than short term pay-day loan rates and preferable if you are looking to spread out your borrowing over several years.

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