Thursday, March 29, 2012

Can I Refinance My Home Without an Appraisal?

With mortgage rates hovering near all-time lows, you might want to consider refinancing your mortgage in order to free up some extra cash by lowering your monthly payments.

However, home prices are down from where they were at the housing market's peak, making it more difficult to accomplish this task. Appraisals can be one more hurdle in this process. However, there are some options if you are looking to refinance your mortgage without one, such as a VA streamline or an FHA streamline.

VA Streamline Refinance

In order to use a VA streamline, you must first be a military veteran or active duty personnel and have a current VA loan.

Some benefits of a VA streamline refinance include:
  • It requires little or no out of pocket expenses, including most closing costs and other fees. Instead, you can roll these costs into the balance of the new loan to keep your savings intact.
  • Interest rates are normally lower than the rates received by non-military borrowers.
  • Rates that will not go up during the life of the loan.
If you are a veteran or an active duty member of the military, using the benefit you have earned could save you and your family a significant amount of money on mortgage payments every year.

FHA Streamline Refinance

Meanwhile, if you are not a current or former military servicemember, you might qualify for an appraisal-free refinance through the Federal Housing Administration.

In order to qualify for this program, there are a few basic requirements:
  • Your mortgage must already by backed by the FHA.
  • You must be current on the loan's payments.
  • You must have shown good payment behavior during the past year.
  • The refinance must allow you to drop your monthly principal and interest payments.
  • You cannot withdraw cash from the mortgage.
Since the FHA already backs your loan, no further income or job verification is necessary to

You can actually choose to complete an FHA refinance with or without an appraisal.

However, if you opt out, your new loan cannot be larger than the original one.

FHA refinances without an appraisal are required for rental houses or investment properties.

Take Advantage of the Market

Mortgage rates have dropped to record lows, making refinancing more attractive than ever. Refinancing your home loan without an appraisal through a VA or FHA streamline can significantly lower your monthly mortgage payments, and give you further financial safety.

The higher your current interest rate is, the more you can save. Contact a Freedom Mortgage representative, who can show how much your monthly payments could drop.

Sunday, March 11, 2012

Budgeting For Student Loans

A student loan can be a dreadful thing to pay back if you don't plan accordingly. It's never fun when you fail to prepare for them. These payments can be a nightmare, but they don't have to be. It just takes a little foresight in the budgeting department. Here are some ideas to help you pay back your student loans.

Save A Little Every Week

It may seem impossible to get the student loan payment together at the end of the month. The goal appears to be much more attainable with weekly savings. A little money saved each week can add up to a great sum by the end of the month. Make a mental note that you must save each week in order to turn this into a habit.

You have to save a little before the issue becomes too much to handle. This is usually the best way to sort things out. Few people will argue about the effectiveness of saving money on a weekly basis.

Pay More than the Minimum

A wonderful way to make sure that you don't miss your payments is to budget more than the required amount. If you fail to save all of it you should at least have the minimum payment that is required. It helps because it gives you some room to manipulate your budget. When you have more money you simply pay more.

The best thing about paying above the minimum amount is that it decreases total amount. This will mean lower payments in the long run and this works to your advantage. Few people give it any thought, but bigger payments equate to lower interest rates on the total balance. People that allocate more than a minimum on loans today will pay less in the future.

Cut Back on Your Impulse Spending

A big part of your budget is flawed because most people just don't account for impulse spending. They spend a lot of time adding up all the utilities and rent costs, but they fail to consider miscellaneous check out items or spontaneous cyber store purchases. It would be a great idea to cut this all altogether. That would definitely give you more money to save towards student loans.

Impulse spending isn't limited to candy bars and magazines during checkout. It can include bigger items like clothing and electronic gadgets. Don't let a new cell phone or iPad stand between you and your monthly student loans. Budget your money by cutting down on the spending that isn't a planned part your budget.

Slice the Bill in Half

Some people get paid once a month, others get paid weekly. The most common form of pay is biweekly. Take advantage of this and slice the bill in half. Even if this is not your situation you can still make payments twice a month. A middle month and end of the month payment can help you save for student loans much easier. This may involve setting up an online account.

Use the Auto Draft Feature

If you find yourself struggling to save the amount due, you should sign up for the auto draft feature. This will force you to get your priorities in line. You will have to discipline yourself with all the other spending that you do. The auto draft will help you because you are forced to save the required amount each month. You will not have an option to overlook or neglect this expense.

The best thing that people can do is really make an effort to incorporate this into the budget. It can become a very difficult thing to do make regular payments when you don't address this properly. So many people do not have a real plan for their student loans. It often becomes something that is only paid if people have money left over. It usually isn't taken on as a real expense. It's more of an afterthought. Sometimes an auto draft payment is the best solution.

Marilyn Tate is a writer and city worker earning her public administration degree online to gain more marketability.

Monday, March 5, 2012

Term Life Insurance – The Smart Way to Save Money

Term life insurance is the most convenient type of life insurance to understand. In term life insurance, the person who has this insurance policy pays a nominal premium on every 1000 dollars of coverage on a yearly, semiannual, quarterly or monthly basis. If the insured person dies within the term of the insurance policy, then the insurance company will be liable to pay the beneficiary the face value of the term insurance policy. There are so many insurance companies all over the world, which are providing term life insurance to the people. Premium rate on the term life insurance plan may vary from company to company. Therefore, it is important to get different quotes from different insurance companies before buying a term life insurance plan. Many companies do not give what they promise so screening of the company is also very important while buying the insurance policy.

Some Important Features of Term Life Insurance

  • This is pure insurance because when you get a term insurance plan then you are actually purchasing a death benefit. Apart from other types of insurance like whole life, universal life, and variable universal life, there is no extra cash value built up in this kind of insurance policy. This is the only insurance policy, which gives a specific death benefit.
  • The coverage in this type of insurance is for a the term such as one year, five years, ten years, fifteen years, and so on. When one gets the term life insurance then it remains in force until the finish of the term, assuming he/she is paying the premiums on time.
  • Most of the term life insurance plans are renewable at the end of policy term. With Level Term Life Insurance, the death benefit remains similar during the term of the insurance policy, but the premium will increase gradually because the insured person is getting older. On the other hand, in decreasing term life insurance policy premium remains the same, but the death benefit goes down with the time.
  • Most of the term life insurance plans can also be converted to permanent insurance plans within specific years. A permanent insurance plan accumulates cash value, which enhances the death benefit paid to the beneficiary.
Resource Box: Hi, my name is Muhammad Azam and I am an avid blogger and professional writer. I have experience in writing articles on PR media, life term insurance and on life assurance.

Saturday, March 3, 2012

Vital information on life assurance policies

Congratulations. If you are reading this article, this means that you have decided to buy a life assurance policy. Reading and knowing about life assurance are necessary because this way one can get the idea of what they actually are. Life assurance policies are made to provide financial health to the insurer’s relatives, family, children or the other beneficiaries he opts for, after he dies. It is important while you want to buy such a policy, that you read reviews, articles, citations and user reviews of such policies. It helps to protect you from certain things while buying the policy and help. It is important while you want to buy such a policy, that you read reviews, articles, citations and user reviews of such policies. It helps to protect you from certain things while buying the policy and help to guide towards how to buy and from where to buy life assurance policies.

Knowing about the advantages and disadvantages of life insurance policies is easy. It helps to achieve a proper decision to buy. This decision can be related to buying one specific policy with all the formalities completed within time and according to one’s need and requirements.

Different companies and insurance providers have now many blogs, websites and review sessions on line. They provide information on the many types of life insurance policies, their down payments or premiums, the amounts of payment to be done, and who can be insured and who can be the beneficiary. The information they provide also consider to tell you about the conditions, circumstances and the time when the policy can be cashed. This way, it is easier to decide for hoe many years do you
want to buy a policy, what will be the coverage period, and according to the requirements, what type of a life assurance policy do you want.

There is always a rate of interest involved while the premium is submitted. The websites these companies provide have all the information necessary to know how much the policy may cost you as well. By defining the many differences of different life insurance/assurance policies, one may better understand the needs and identify the type of insurance policy he may need.

Although every amount of cash deposited and withdrawn may have a rule for deductable tax, however, the policy of life insurance may not have a tax deduction rule while the payments are made. The tax is only deductable when the policy is cashed and the money is withdrawn.

Muhammad Azam is a professional writer and has experience in writing articles on PR media, life term insurance and on life assurance.