Keeping Your Bottom Line In Mind

Keeping Your Bottom Line In Mind

The Benefits Of A Payday Advance

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Few things in life are as frustrating as being caught without money a day or two before payday. Even though you’ll have all the money you need very shortly, you need it right now, and there isn’t a lot you can do about it. One option that you do have is a payday advance. To help you make a more educated financial decision, here is an overview of what a payday advance is and why you might want to get one: What is a payday advance? In essence, a payday advance is a very short term loan. Ideally, you will want to pay back the advance within a couple of days. If you fail to do so, then the interest can rapidly accumulate and you can end up owing a lot more than you originally borrowed. However, this does not mean that payday advances are a bad idea. If used responsibly, a payday advance can be a very valuable financial tool for many families and individuals. Why get a payday advance? If you need money on short notice, then you don’t really have that many options. Traditional loans at the bank are generally overkill for your needs. On top of that, banks might deny you a loan based on your credit. Even if you do get approved for a loan at the bank, the process can take a lot more time than you have to spare. A payday advance can be acquired in a matter of minutes, depending on where you look. Various businesses offer payday advances online, but if you are more comfortable getting the money in person, you can probably find a brick and mortar office in your area that offers cash advances. One of the biggest benefits of cash advances is that they often bypass the credit checks of traditional loans. In many cases, your credit won’t even be checked when applying for a cash advance. If your credit is checked, then the odds of you being denied are very low. That being said, you should be careful. Even though the application process may be very quick, you still want to read all the terms and conditions. If you misread some part of the contract, then you could end up paying back a lot more than you expected, or you may miss the payback date completely. As long as you pay back the cash advance as quickly as possible, you will only end up spending a small amount of money. Get in touch with a service such as USA Cash Services to learn...

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The Pros And Cons Of FHA Loans

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When you are shopping around for a new home, the dilemma of choosing the right type of financing for your mortgage comes to mind. The two primary options are between a traditional mortgage and a Federal Housing Administration (FHA) loan. FHA loans are a type of home financing that s insured by the FHA, which is a government agency. It offers some excellent advantages, but also some drawbacks to be aware of. Pro: There are smaller down payments A major benefit to choosing an FHA loan over another type of lender is that you get the opportunity at a smaller down payment. If you were to get a traditional loan, you might be required to pay around 15-20 percent of the home purchase, which could be a lot of money. However, FHA loans have been down to be as low as 3.5 percent of the purchase price. It makes it possible to by a new home even without a lot of money in the bank. Con: Only certain lenders are acceptable. FHA loans are not available by all lenders, so you have to be a little more open-minded with who you choose. For some people, this can be a burden because you have to look through the list of FHA-approved lenders. While there are many lenders on this list, it might not be available by your neighborhood bank or credit union. However, this can be an advantage if you aren’t too picky about the lender, but care more about your approval rate and getting the loan quickly. Pro: FHA loans are available for lower credit scores Another huge bonus to FHA loans is that it is easier to get approved, even if you don’t have the best credit rating. While every lender is slightly different, most lenders will look for credit scores above 600, often above 650 or higher. This is considered a good credit score, though lenders might even look for scores higher than that, depending on what is seen on their credit report. However, the FHA allows you to have a score in the 500s if you can show that you are financially secure enough to afford the loan payments. Con: More Paperwork is involved With FHA loans, it is a slightly more complicated process than a traditional mortgage. Not only do you have the basic mortgage and home buying paperwork, but you also have additional paperwork for the government-funded loan. You might want to get legal assistance with filling out this paperwork so you can be sure it is all being done correctly. This is also a drawback due to the extra time needed for approval. For more information on home loans, talk a professional like those at Dynamic Mortgage Concepts...

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Real Estate: Buying A Home On Water

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Although buying a houseboat or floating home as your primary residence is similar in ways to buying a house on land, there are differences in financing, appraisals, and the additional costs involved. Financing the Purchase A houseboat is a self-propelled vehicle on water, whereas a floating home is permanently moored and unable to move on its own. Since a houseboat can move on water, you can finance the purchase with a recreational vehicle loan. Although houseboats generally are financed over a shorter repayment period than homes on land, marine lenders often offer houseboat financing with 20-year loan terms. A floating-home loan is similar to a standard home mortgage loan, although not all lenders offer mortgage loans for floating homes. Generally, when you take out a loan for a houseboat or floating home, you need to make a down payment of 20 to 35 percent of the home’s purchase price. Interest rates vary, but lenders usually charge a higher rate for homes on water than homes on land. The interest on a floating-home mortgage typically costs 1 to 2 percentage points more; loans for houseboats cost about 3 percentage points more. The same as for a home on land, you can get pre-approved for a houseboat loan. Getting a Home On Water Appraised When it comes to appraisals, lenders and insurance companies request a thorough inspection of the hull and interior of a houseboat to determine its value. As the buyer, you pay for the marine survey. The cost varies depending on the size of the houseboat. Lenders usually use their own surveyors and divers to conduct the inspection. The appraisal for a floating home requires that the foundation below the water be inspected in addition to a traditional house inspection. Paying Added Costs Although you won’t pay property taxes on a houseboat, you will pay sales tax when you buy the home. Additional costs of ownership include insurance and dock or slip rental fees and an annual relicensing fee, which may be tax deductible. The cost of the fee is determined by the size and value of the houseboat. If you buy a floating home, you may have to pay a cost similar to a homeowners association fee. You also pay personal property taxes to the county on the assessed value of the structure. Claiming Tax Deductions Like a home on land, if you use the houseboat as collateral to secure the loan and live in it as your main home or a second home, you can deduct the interest you pay on the loan on your federal income tax return. You can also deduct the sales tax you paid when you purchased the home (which technically is a vessel) up to the state or local general sales tax rate. A floating home may qualify for the home mortgage interest deduction as well.  If you are considering buying a house on water, consider these things and contact a home loan company, such as MCS Bank, to discuss different financing options that will work best for your...

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Lifetime Annuity Vs. A Lump Sum Payout

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When you retire and can begin receiving your pension, you have a choice between a lump sum payment or a lifetime annuity. In the first instance, you get all of your money at one time, and in the second instance, you get a fixed check for the rest of your life. While the dependability of a steady income might sound like a good option, there are instances where taking the lump sum payout might be the better option.  Do You Have Children? If you have children, then you may want to consider taking the lump sum payout. The reason for this is that when you choose a lifetime annuity, your spouse can end up with only 50% of your pension when you die. On the other hand, if you take a lump sum payout and are smart with your investments, you should have plenty of money left over when you die to give to survivors as an inheritance.  Are You a Good Investor? If you take a lump sum payout, having a huge sum of cash at your disposal may lead to the temptation to buy whatever you want. If you are not wise with how much money you spend, you may end up with no money in a short period of time. On the other hand, if you take your money and invest it carefully, you can grow your money. Remember, however, that as you age, diseases like Alzheimer’s and dementia become more of a risk, and if you fall prey to them, they can seriously injure your ability to invest.  Do You Need the Money Right Away? If you retire from a job, you may still work at another job if you choose to. In this case, you may be able to support yourself without the need for a pension check. In this case, you should consider taking the lump sum payout and investing your money so that it can continue to grow while you are able to provide for yourself.  What Will Happen with Inflation? Most pension plans do not factor in the increase in the cost of living due to inflation. Thus, while your pension check might be enough to get by right now, it may leave you living in pinched circumstances in just a few years.  These are just a few of the factors that you should consider when you receive your pension. Suffice it to say that you must weigh your circumstances carefully and make a choice that fits the realities of your...

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