Tag Archives: finance

Understanding Mortgage Refinancing Costs for Draper Homeowners

Mortgage Refinance being encircledFinance expert City Creek Mortgage states that typically, how much mortgage refinancing costs vary in Draper depends on the loan amount and its interest rate, your credit score, and the lender.

It will be useful that you note this early in the article that, of the three, the latter is the factor that you can work around most comfortable while negotiating a fairer refinancing deal.

Some More Light into That

Any home refinance’s closing costs will include escrow and title, lending, appraisal, credit and insurance fees, as well as points and taxes. Should the property in question have enough equity, the owner can choose to either add these closing costs to the mortgage loan balance or cash out the saved equity.

But, while this latter case will lower the mortgage balance, you will need to chip in some money at closing to cover these expenses:

1. Appraisal Fees. Your appraiser can charge you a higher or lower figure depending on the type of your property, and whether it is an owner-occupied or investment property.

2. Credit Fees. These are charges for processing accurate credit reports from three recognized and reputable bureaus so that you get better interest rates as a homeowner.

3. Escrow and Title Fees. These are service fees that title companies charge to act as independent third parties in facilitating mortgage transactions.

4. Lending Fees. The lender charges these fees to cover all processing and administrative matters, including underwriting and document preparation.

5. Points. These include discount fees, which homeowners pay upfront to lower the mortgage loan interest rate; and origination fees for compensating mortgage originators during the transaction.

As a homeowner in Draper, you can avoid these additional fees to your current loan balances if yours are no-cost mortgages. You can, however, still opt to take higher interest rates so that you cover the closing costs.

But, it is imperative that, before you settle on which of the two, you engage a trusted mortgage planner to help you determine which option will work best for you.

Got Arrested for Writing a Bad Check? Here’s What You Should Do

Man getting arrestedWriting a bad check has many legal consequences and can lead to jail time. Check floating is when you knowingly pass a check for an amount you know is not available or sufficient in that bank account. Float checks are also those written against closed accounts. Either way, both carry big penalties.

The state of North Carolina views check bouncing or fraud as a criminal offense; with penalties ranging from fees to imprisonment of more than two years. Even if you intend to deposit the amount as soon as you get the money, you should never have written the bad check. In most cases, people would write a bad check and cover it with a future deposit. But banks only give a few days to two weeks for you to deposit the amount.

If you don’t meet the conditions stated in the bank’s notice, law enforcement agencies will issue a warrant for your arrest. Arrested or not, here’s what you can do to get out of this sticky situation.

Cover the Check and Pay the Fines

Once you receive a notice of insufficient funds from the bank, the right thing to do is cover the check as soon as you can. Tap into other sources of funds or borrow money from a friend or family member, or take out a quick loan. But if you really can’t make the deposit and pay the fines on time, be prepared to face the legal consequences.

Contact a Bail Bond Agency

If you get sued for bank fraud, the best thing to do is face it head on. Once the judge determines your bail amount during the bail hearing or arraignment, it’s best to post bail right away to avoid staying in jail. Bail bonds in Raleigh, NC are available if you are unable to pay the amount in cash.

Rebuild Your Credit Score

Having a criminal record can significantly impact your financial life. Banks can close your accounts and deny your future applications. Moreover, your credit score will terribly suffer. But, once you’re out of jail and have settled the issue with the bank and the individual or retailer you wrote the check to, you can still rebuild your credit.

The best way to avoid all these is not to misuse your bank accounts and never write checks if you’re aware of your credit situation. Having a criminal record will not only drive you into legal and financial trouble, but it will also taint your credibility.

Small Business Loans: When Should you Go Online?

Small Business LoansIt’s a popular scene from the movies: a struggling entrepreneur decides to start his first business. He knots his best tie, slicks his hair back, and eagerly heads down to the local bank. The bank’s manager seems thrilled with the entrepreneur’s idea and gives him an envelope full of cash to fulfil his business dream.

Unfortunately, this perfect reality only exists in movies. In real life, it’s a different story.

For a small business, the bank isn’t always the best option. Thanks to the Internet, you can apply for personal business loans online. But just because it’s more convenient, doesn’t mean it’s THE solution to your business’ needs. Online loans can cost more compared to bank loans but for some situations, it’s necessary.

Scenario 1: Bank Loan Rejection

Some small businesses manage to survive a bank’s exhaustive loan application. Their victory, however, is short-lived when the bank rejects them during the last step. Reasons for rejection include the following:

  • Blemished credit report
  • No sufficient collateral
  • Lack of ability to meet time-in business requirements
  • Operating in industries traditional banks cannot service

You’re not alone in the struggle. Most small businesses also encounter these factors, resulting in their rejection. But with online loans at hand, you need not worry further. Unlike the traditional bank’s requirements, online business loans are not as severe and give you more flexible options.

Scenario 2: Need Money Now

Businesses will always encounter short-term cash constraints along the way. It’s odd to see start up owners overspend, but it happens. To compensate, entrepreneurs resolve to quick loans. But since traditional banks take time to approve loans, it’s not an ideal solution for most small businesses.

Online lenders, on the other hand, can approve your loans within an hour and you receive the cash within a few days. Just make sure to strike a plan to pay off these loans immediately to avoid further constraints.

Starting your loan search at the bank is still a good first step, but if you’re all for convenience or immediate cash, going online is your best bet.

 

A Look at Liquid Assets and Their Effects on Debt Management

Debt ManagementA number of things can happen with debt consolidation, as far as service providers like RapidLoans.co.nz are concerned. That said, it is important to know about specific basic concepts that can help ease the process further. Case in point: liquid assets.

For starters, liquid assets are a specific type of valuable possessions. Assets can be anything from savings accounts, stocks, jewellery, and other property, but each can be separated by its liquidity. An asset is considered ‘liquid’ if it has cash value, or is easily converted to cash. But why cash? In a world where convenience is everything, cash is heralded because there’s actual, easy-to-distinguish value in it. It is also easily transferable, which is why the world has abandoned barter long ago.

Now, what does this have to do with debt management? Simple. If you actively maintain a liquid savings account, several debt payoffs are made easier. For instance, refinancing a mortgage. Doing so at a lower rate using liquid savings is a smart move. In addition, when you need to pay out-of-pocket closing costs, liquid savings can be useful. But, this move is only ideal if rebuilding savings can be done immediately.

The importance of asset liquidity can’t be overshadowed. Here’s why: whenever a financial emergency occurs, non-liquid assets like land, pricey paintings, and the like can’t be used to pay something off — for instance, a debt. Should you decide to sell the assets, it’ll take you longer than usual, which could’ve been used for something else. Take this analogy for a nifty explanation: when you’re thirsty, you need to drink water straight away. You can’t use a machine that slowly distils water droplets from the air, only to have a full glass a day later.

Barter has been largely abandoned for a long time, and for a good reason. The degree of convenience that actual cash offers is of massive help in debt management, and there’s no other way around it. Creditors need money, not other types of valuables. And the sooner you get them what you owe them, the better.