Sunday, April 15, 2007

3 Classic No Down Payment Strategies

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Health articles, Business and finance articles, and many other topics to choose from.

Refinance Your Mortgage Rate - Unless You're A Woman

Behind many mortgages, there are two people. A man and a woman. While both of their names are on the paperwork, one of them never gets involved with the finances more than that.

This person never signs the check that goes out monthly to the mortgage company. Couldn't tell you what the mortgage balance is. Isn't sure what happens when the property taxes come due. And hasn't a clue about the homeowner's insurance (we have some, right?).

More often than not, this person is the woman. For some women, 'finances' is a dirty word.

If you are the woman in your household and you don't even know what the interest rate is on your mortgage, it's time to get involved. And here's why.

* You need to know for yourself where your food and shelter are coming from. * You are a role model to your kids. * You need to get financially educated so you can help YOUR mom when she needs you to. * This world isn't heaven...when the unthinkable happens (and some version of it probably will), you need to be prepared as best as you can. * You can't believe how good you'll feel when you learn to be in (better) control of your finances.

At this point you may be feeling overwhelmed. That's good! Because for many women, the feeling of overwhelm is a large part of what keeps them from getting involved with their family's finances. Now that you know that fact, you can do something about it. For starters...

* does your mortgage need refinancing? It won't take you much research to discover this one. Talk to your spouse or pull out your mortgage paperwork. What is the current rate? What type of mortgage do you have? Do a search online for 'mortgages rates' and you'll find a lot of information to get you started. Aim for learning enough to be able to have a reasonable conversation about the topic.

* what types of insurance do you have? Simply pull out a piece of paper and list all the insurance policies your family has. Identify each type of insurance (life, auto, home, etc.). Then do an online search on these insurance types and start reading. Look for informative articles, not insurance advertisements. If (when) you get confused, sit down with your spouse and ask questions. Or call up your insurance agent and make an appointment to talk. It's the agent's job to make sure you understand what you're paying for.

* do you have a household budget? For our discussion, you don't need to even worry if you are staying within your budget. Just play with the numbers and get comfortable knowing where your family's money is going. You are building awareness and understanding, not training to be an economics professor.

* do you have a will? How can you find out? Focus on asking questions one at a time and finding the answers to them. This will avoid a lot of overwhelm.

* go to the library and pick up a copy of any of Suze Orman's books. Read and absorb.

That's not so scary, is it?
Do yourself a huge favor and learn one or two new things each week about the financial world. It's a decision you will never regret and one that can have significant impact on the rest of your life as well as your family's life together.

Just take it one step at a time.

About the Author

Colleen Langenfeld has been parenting for over 25 years and helps other moms enjoy mothering more at www.paintedgold.com. Get more refinance mortgage tips here.

Mortgage Rate- Five Hot Tips for Sub Prime Applicants

This news flash just in: NOT EVERYONE HAS A GOOD CREDIT RATING. Fair Isaac and Company otherwise known as FICO puts together a credit rating on just about anyone old enough to spend money. While the exact formula for the rating remains secret, the things you can do to get a home mortgage with a bad FICO score are not secret.

If you are in the sub prime category online lenders can save you a lot of time. Even with the recent "scandal" of sub prime lenders, there will always be a sub prime market. Here are some steps you can take to become a homeowner with bad credit.

* KNOW WHERE YOU STAND It is this simple: the higher your FICO score the better the deals will be. Get a copy of your report, fix any errors and take steps to improve your score. If you are below 500 you are going to have a hard time getting a loan. If you are in the 550-650 range you should be able to get a loan with a down payment. If you are in the 650 range you should be able to get 100% financing. Just bear in mind that things have severely changed in the last 6 months.

* START SHOPPING Online lenders can save you lots of time and frustration. Look for sub prime lenders-lenders that specialize in loans for borrowers with bad credit. Apply with several of them, but thru a service like "Guide to Lenders" that way your credit report will only be pulled once.

* SAVE FOR A DOWN PAYMENT As we have shown if you don't have a great credit rating cash will help you big time. The more your financial commitment to the deal the better your chances of getting favorable rates and terms.

* DON'T GIVE UP Someone out there has a loan with your name on it-you just have to find it. Don't take no for an answer.

* NOTHING LASTS FOREVER If you find a loan with rates and terms not to your liking you may want to take it and refinance in a few years when your score has improved.

Use the experience to grow and improve your score and you will be the winner. A bad credit rating should only slow you down not stop you from getting a mortgage. On line lenders will save you time and frustration and help you achieve your goal of home ownership.

Jack Krohn is a leading free lance writer on Home Equity and Mortgage issues with over 35 articles to his credit. He is also the #1 author of Home Security Articles in the country according to Ezine Articles.

About the Author

If you are looking for a mortgage, home equity loan, or refinance. GET UP TO 4 FREE MORTGAGE QUOTES and FREE HOME EQUITY LOAN INFORMATION

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Investing: Reader Exposes Mortgage Mischief

Beware of Option-ARM mortgages. They are heavily promoted, but should rarely be used. I recently received an email that perfectly illustrates how overly zealous mortgage brokers push these dangerous products. Knowing their deceitful tactics will protect you.

'Carrie' is from Washington, D.C. She sent me an email because she recognized the dangers of Option-ARMs after reading my recent articles at http://www.guardingyourwealth.com. She and her husband have one and are going to refinance before there rate goes up even further.

Carrie and her husband have a home worth $900,000 and owe $340,000 on it. Their credit score is very high and they'd like to get rid of their 5.9% Option-ARM and refinance with a fixed mortgage. Her problems started when she contacted a mortgage broker...

Carrie explains: "A zealous mortgage broker tried to get us to refinance into another Option-ARM. My whole purpose in wanting to refinance was to ditch this loan and get into a 30 yr. fixed mortgage before rates really go up, which I assume is a reasonable assumption."

I want to show Mr. Zealous Broker's reasons because I have heard other readers all across the country tell me the same thing. Carrie continued, "Mr. Zealous Broker's rationale on why we should refinance into another Option-ARM is as follows:

1. Since we have so much equity in our home, we should take an additional cash-out of $100,000 and "invest" that money for the long term.

2. He asserts that we have made a mistake in paying the fully amortized principal and interest option payment each month. Instead, he says we should only make the minimum payment despite the fact that this results in negative amortization. [Negative amortization means the amount owed increases each month!] He says that making the minimum payment each month and taking out the $100,000 to invest is a smart move because we will 'create wealth'.

3. It is unlikely the value of our house will decline in the future since the Washington, DC metro area housing market has always been fairly stable and strong.

4. Negative amortization is not a problem since we will never pay the house off anyway. The best thing to do is to refinance every 3 years with an Option-ARM at a lower rate. Our decent financial situation allows us to be able to do this.

5. It is not problematic if the interest rates on the Option-ARM rise since the rate on our investments will most likely rise as well. "

Carrie concludes, "I am trying to keep an open mind but I can't help but wonder if a) this guy gets paid more on Option-ARMs, and b) it services his commission to have us refinance our Option-ARM every few years. Also, despite the potential to "create wealth" by investing the cash, I do not wish to have a huge mortgage debt as we approach retirement in 15 - 20 years.

Am I missing something? I am no financial genius but something doesn't seem right. I would appreciate your insight since this broker has confused me to the point of needing some financial therapy!"

I responded...

"Well the doctor is in! First, you are absolutely correct in your take on the situation. This investment philosophy is being heavily promoted by some 'wealth management' strategists because of the commissions it generates. The only thing that surprises me is that Mr. Zealous was only suggesting you take out $100k (why not more?) and that he isn't suggesting you put it into an equity-indexed annuity or equity-indexed life insurance!

It is a waste of money to refinance your mortgage every three years. It is also untrue that if mortgage rates increase that the amount on your investments will go up as well! Has he ever heard of a recession?

Run from this advisor and anyone else recommending you leverage your home for the potential of a greater return on investments. You are earning 5.9% on the equity in your home right now with zero risk. Refinance into a fixed mortgage or a 10/1 ARM."

Carrie took my advice and is now working with a reputable mortgage broker. Here's the point--when dealing with your finances and your gut tells you something is wrong, listen!

Have a financial question? Send me an email and I'll personally respond, free of charge. Go to http://www.guardingyourwealth.com and click on 'Ask Jeff'.

SPECIAL REPORT:
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http://www.guardingyourwealth.com/SpecialReports/GeneralEIA.htm

In addition to being a nationally syndicated columnist and Certified Financial Planning Practitioner, Mr. Voudrie provides personal, private money management services to clients nationwide.

About the Author

Nationally-syndicated financial columnist and Certified Financial Planner® Jeffrey Voudrie provides personal, in-depth money management services and advice to select private clients throughout the USA. He'll answer your financial question - FREE at www.guardingyourwealth.com.

How To Sell Time Share Property Successfully

There comes a time in life when you need to reorganize your investments, refinance your debts or sell off some properties. At such times, you not only need adequate resources and tools, but also a careful attention to the matter. Selling timeshare properties is no different. For a quick and easy closing of timeshare properties, you may need professional help too. Here are some helpful pointers on how to sell time share property.

First and foremost, you need to become fully aware of what you are getting in return when you sell you your time share property. Make sure to understand the terms of sale and guarantees by asking until you do understand them. If your agent is good enough he will do the job but if you are not satisfied, find another one. Diverse professional advice can give you a better understanding.

Pretend to be a buyer and compare prices of time share similar to the one you are selling. Selling time share property with a competitive price is very essential for a quick closing. Make sure that you are not quoting your price too low or too high. Find out the usual price given by developers and compare it with your desired selling price. You may need to compromise a little bit but definitely you will not incur any major loss and you can sell your time share property easily.

Watch for hidden fees when you appoint agents to sell time share property. Do not pay unconditional fees. These fees are derived by agents and form a large percentage of their income from up-front fees.

Pricing the time share property appropriately is the key to a successful deal between an investor and a seller. Investors will always be looking for the right deal that is often priced lower than seller's desired price. If the time share is already older than the other time shares in the market or is less popular during the selling period, it can affect the pricing badly.

It's always a good idea to take advantage of external factors while selling your property. Check out any nearby social activities and take them into consideration. Local tourist business means more money in the pricing scale which in turn is beneficial to you. Also consider if your unit has or is near to a good view. It can either be a swimming pool, besides the seashore or fronting a beautiful mountainside. Any one of that will push the price of your time share higher.

What you should know when it comes to how to sell time share property, is the best option is to post your listing so that potential buyers can find the benefits of your time share offer. However you advertise your offer (online, print media, via direct mail, among others), be reasonable with your asking price. Units when overpriced move rather slowly in the market which is based on location and price.

Getting professional help
If you wish to sell time share property through the help of a professional or a time share company but without the hassle, find the one that can give you the benefits without much cost. There are time share selling companies that do not charge any commission and handle all the negotiations themselves with a broker. But you need to make sure that they get complete and accurate descriptions, locations and information regarding your unit in allowing agents to sell your time share property.

When you look for a professional seller company, find the one that advertises your offer to potential consumers in print like magazines and newspapers, and also on the Internet. It's definitely a plus to have a worldwide exposure since the time share industry has been a worldwide success.

The farthest reaching campaign will be the best venue for you to sell your time share property to qualified buyers in different countries. Professional internet marketing consultants are provided by time share companies to make your website advertising work for you.

You can find professional help that will also aid you through the selling process. There also are excellent resources for you to help you in the title work and helpful time share sale financing.

Just like in any other business, there are scams in time share property transactions also. You may be duped by these scammers when they offer claims, guarantees and timelines that are unrealistic yet deceiving. Do not agree to anything over the phone or online until you have had the chance to check out the reseller's reputation and experience. If you can obtain references and verify with them, they can provide solid foundations to choosing the right reselling company for you.

At the final stage of knowing how to sell time share property, make sure the professional aid you get does not require any additional costs during the closing.

Last but the least, check and verify all the laws concerning sell of properties in your area and abide by them. Always sell time share property with legitimate means because the law will be on your side should any unpleasant things happen.

All of the above tips and guidelines should help you sell your time share property to your greatest advantage and make the selling process easy, legitimate and cost effective.

Make sure you get your free five part training course that will teach you about buying and selling timeshares. Get this time shares training course now at more on timeshares for sale. More articles on time shares are available at time share selling articles.

About the Author

http://www.mytimesharesforsale.com provides helpful articles on the best ways of buying and selling time shares.