Also known as junior-lien, a second mortgage uses your home as collateral, while you have already taken another loan using your home as collateral. Home Equity Lines of Credit and Home Equity Loans and Mortgages are included among second mortgage loans.
Approval of a second mortgage is genuinely a little difficult because you need to provide satisfactory financial resources to support your mortgage application.
However, a few things can derail your application. Have a look on the essential features that lenders look out for in your mortgage application for a safe bet.
The debt-to-income ratio is the ratio of your all earnings compared with all debts. When you meet a lender, they evaluate your income resources to calculate your earnings. They will calculate all debts and subtract the sum of debt from the sum of your income. If the value is satisfactory, enough for mortgage repayments then the lender will approve your mortgage application. However, the standard of satisfactory total differs from lenders to lenders. You may find a lender in the market who is willing to work on low amount of the total but the research process will consume a lot of time.
The credit score becomes more important in second mortgage applications. The lenders would want to check the history of your previous mortgages and loans to evaluate your repayment history. The credit score will provide the details of your late payments also.
The most important thing in second mortgage process is your equity. The lenders will evaluate your equity i.e. the amount you have collected on your home. They will compare it with the remaining balance of your first mortgage. The lenders may ask you about any other savings or reserved money like emergency funds for financial obligations or even mortgage payment insurance.
The financial obligation on people doubles when they take out a second mortgage. This means that if you have large employment gap, then you should have doubled resources or backup to repay the instalments of primary mortgage as well as the second mortgage. Good employment history, along with mortgage payment insurance or employment insurance reveals that you are able to repay the instalments of both mortgages.
How to Prepare for a Second Mortgage
The following tips will help you to prepare yourself before going to a lender.
- Be prepared to tell the truth about your financial resources and obligations. The lender will see your credit report therefore, telling lies in the meeting will not provide any favours to you.
- Are you planning to change your company? Has someone else already recruited you from the next month? Make sure to explain your employment woes to the lender.
- Shop around and meet with maximum number of lenders.
- Do not exceed the limit. Take mortgage, which you can actually repay.
Along with these, make sure to meet a financial advisor or mortgage advocate to learn about the process, mortgage structure, financial restrictions, and other relevant issues in second mortgage process.
Caffeine is not only thing that will help you through college education. You will need funds to finance your studies as well. Student loans are an unavoidable part of the college experience that approximately 70% of graduates end up with. There are basically two types of student loans you can apply for.
- Federal Loans
- Private loans
These loans are issued by the federal government and nearly every student who has a high school diploma is an eligible candidate. Federal loans can be further categorized into three types:
- Direct loans
- Direct PLUS loans
- Perkins loans
These are disbursed by banks and financial institutions. To be eligible for these loans, you have to have a good credit score. The interest rate that you will be charged will also depend on your credit history. So you can apply with your parent or guardian as a co-signer. These have more strict repayment options and a higher interest rate as compared with the federal loans.
Ways for a Smooth Procedure of Student Loan Application
There are several hacks to ensure a streamlined procedure for student loan application to save your time.
Yes, there is a lot going on when you apply for admission in different colleges but one thing that you cannot afford to overlook is filling out your Free Application for Federal Student Aid (also known as FAFSA) form. If you want a high aid amount, you should take care to fill the form as soon as possible, even before you know which college accepted you as a student.
Here are some ways that will save you time.
Create your FSA ID
To submit your FAFSA form online, you will need a FSA username ID and password to create your account from their company website. If you are a dependent student, then your parent or guardian will need to create one too. Then you will have to wait a few days for the Social Security Administration to verify your credentials.
Sort out your Documents and Personal Information
To make sure your process is smooth and hassle free, gather all your personal information and financial documents before you start. Documents like your social security card, federal income tax returns, driver’s license and bank statements among many others are required. Be sure to go through the complete checklist while you sort your paperwork.
Stay Ahead by Taking Free Help
It can be overwhelming to fill out an exhaustive form. You can get free help online from resources like NerdWallet. The guides are especially convenient if you face unusual circumstances or have immigration issues.
Check for Mistakes
To avoid more paperwork that is just tedious and wastes more time, check for mistakes and errors in your FAFSA form. It is tempting to immediately submit the form once you complete it. But pause and hold on. Recheck for blunders. Mistakes can qualify you for the verification list, which will just add to the amount of paperwork that you have to do.
Double check the numbers you enter on the form. Triple-check the spelling of your name. if your spelling is incorrect, it can delay the whole procedure.read more
Internet savings accounts products are unlike regular savings accounts you might find in a bank. If you are interested in online savings accounts there are some clear advantages and disadvantages you need to know about. It is also necessary to compare internet savings accounts to be able to choose the best internet savings accounts for you and your family. With an internet savings account you can go with a UK bank or you could use an overseas internet bank such as ICIC Bank. Even nonbanks provide accounts now and a popular one is the Tesco Internet Savings Account.
Internet accounts are those only found in online banks. In other words they are not accounts you can access by going to a bank institution on your street corner. You should not confuse online savings with online account access. Many banks offer an online account access in which you can track your regular savings; however, the access is for your records rather than accessing your money. With internet savings you are completely online. To put money in the account you either have to do an electronic transfer or send it via mail.
Compare Internet Savings Accounts Online
Since internet savings accounts are set up this way, there are advantages and disadvantages. You will want to compare internet savings accounts against the other types of savings account to see if the benefits are enough to make it worth opening the best online savings accounts It is always important to look for the account with the best rates but there are other factors such as access to the account and whether you need to give notice to make a withdrawal. Here are some benefits:
24/7 account access
It is very easy to remain anonymous with online savings even for UK internet savings accounts. You will never have to meet a banker or even talk with one unless you have an account question. Many find this anonymity pleasing. It also offers them more privacy in that no one can see what they have in their account. At a bank someone could be looking over your shoulder, but not when you’re online. The main benefit is the higher interest these internet savings accounts tend to have.
By taking advantage of internet savings accounts comparison you get to see at a glance the best rates offered by the different UK and overseas banks without having to research each account individually. An internet bank account often has higher interest to gain your attention and this is particularly so in the savings accounts sector for internet banks. If you are looking for an instant access internet savings account then take a look at our instant access savings section.
The Disadvantages of an Online Savings Account
Unfortunately, like all products there are disadvantages to internet savings accounts:
-No Instant Access
-No ATMs, Banks
-Online Security Concerns
-Mail in deposits, wait for withdrawals to be sent to you
It is true no one can look over your shoulder if you manage your internet savings account from your home computer. However, there can be issues with internet security as a whole. Hackers enjoy breaking security programs to find personal data. So, while some security and privacy is afforded online, you do have to be wary of the internet connection you make. Are you on wireless? If so, you need a WEP key and added computer security. This is a slight drawback.
The most troublesome aspect of internet savings accounts is not being able to access your account funds instantly. It takes a couple of days to send you the money you withdraw. You are also limited by the number of withdrawals you can make in a year. If you do not need easy access to your savings account, then online savings can be a great way to increase your savings quickly with higher interest than other accounts you might compare.read more
The most commonly opened bank account in the world is a savings account. As a parent, your child may ask, how does a savings account work, so it’s important to be prepared to answer properly. You might just help motivate them to save!
So what is a savings account and how old you need to be to have a bank account? Well, a savings account lets you safely store your money, while earning a tiny amount of interest on it each and every month. Most of these accounts have lower minimum balances like $20, or require no balance whatsoever. This is determined by the bank, so it’s always smart to shop around when opening a new savings account.
How do you open a savings account? In order to open a savings account you need to be of legal age or have the help of a legal guardian. For instance, in most of the United States you need to be 18 years old, although some states have special laws requiring you to be older. The reason for this is that a minor can’t legally sign any type of binding contract.
The great thing about saving money with savings accounts is that they are extremely safe because your money is insured. If you keep your money at home, and it burns down or gets robbed you’re out of luck. Not the case when dealing with a bank. Banks are able to insure any money you deposit till you reach $100,000. They insure the money through the FDIC or Federal Deposit Insurance Corporation. This means even if your bank goes bankrupt your money will be safe. Not one person has ever lost money in any credit union or bank that was being insured by our FDIC since its inception in 1933.
How does a savings accounts work and how you are able to earn interest from a savings account?
It’s simple, interest is the money your bank pays you in order to use the money you’ve deposited to help fund loans for their other customers. The bank is essentially selling money! The best part is your money is still there whenever you want to take it out. The difference between the interest they end up paying you and the amount of interest they charge their other customers is a big part of how they earn money as a business. The interest you receive on your savings accounts is normally compounded on a daily basis and paid out monthly. The neat thing when it comes to compounded interest is basically paying interest to you on money that they’ve already paid to you in interest. Knowing the type of interest your account pays is something that should not be overlooked!
Banks offer a few types of accounts besides savings accounts. These include checking accounts and money market accounts. A checking account is a transaction based account. It was created to allow people to write out as many checks as they needed to write out each and every month. These type of accounts are meant to be constantly used unlike savings accounts and don’t offer the same types of interests rates, if any. Money market accounts on the other hand, usually will pay more than savings accounts in interest, but normally will require more money balance to be in your account. These accounts may also limit how often you can make withdrawals each month.
If you’re saying to yourself “I need a savings account” just remember, when shopping for a savings account you want to look at both online internet savings accounts and offline regular savings accounts for the best deals, types and amount of interest being paid, and the lowest fees. Every bank charges differently. Some banks may charge fees but have lower minimums while others may require more money to be in your account but don’t require a monthly fee. Take your time and compare all of your available options. It’ll save you a good chunk of money and isn’t that really what a savings money account is all about.read more
US Tax Accountants are a dime a dozen. But even so, they’re quite expensive. If you’ve been using an accountant for your taxes yearly and you feel like you overpaid for their service, maybe you did. But it’s possible you didn’t maximize their service offerings. Make it a point to ask your accountant about the following.
1. Employer Solutions for Employees
Now, you’ve just asked them to see through your taxes to guarantee you a huge reduction on your tax bills. Tax accountants can also give you advice about the effects of tax law changes on your current employee contracts. They could also advise you about modern online tax systems
and which useful accounting tools can be helpful based on your situation. The reason why you would ask about the tools is that these tools can save you a lot of your precious time.
2. Tax Risk
Most small business proprietors forget that tax accountants know about tax laws. They have consistent tax news updates, which allow them to perform tax risk assessment. Ask your accountant if he or she offers a tax risk management service and you might be surprised. Most of the time this is included in a standard service package that includes your tax accounting and bookkeeping basic services. Make sure you check that with your accountant.
3. VAT Are you living in a state with sales tax? Your accountant knows much about value-added taxes and other indirect tax. VAT can be confusing especially if you are unsure of your tax liabilities. Most tax accountants also offer health checks for your VAT, specifically if your tax department isn’t exactly up to speed with the necessities.
4. Tax Function Effectiveness
Tax Accounting companies offer tax function effectiveness services for small businesses. Companies wanting to improve their tax planning, accounting, compliance and financial reporting could do so, for a small additional fee probably. Thinking about tax services as a wholesale that helps you think that you’re actually getting a discount for value-added services.
5. Added Software Some independent tax accountants may peddle some of the available tax software with them. Companies would offer you an entire suite of tax software designed to help your company cope better with tax accounting and make your declarations more accurate. Ask if your accountant has one and ask if you could get a discount; they would most certainly give you one. This enables you better business and easier tracking of your finance. As it is said, a lot of accountant bring with them software of this kind, so make sure you ask them about it.
We all have the situations when our current financial situation is not good. We might spend our money on something we haven’t planned so we need a little extra money for life until our next paycheck. There are also situations when unforeseen expenses appeared out of a blue and we are not ready or financial prepared to handle these expenses. Unfortunately, these kinds of financial surprises are very common today. Or better to say, unpleasant financial surprises happens all the time. If people don’t have an additional source of earnings, this is very difficult and stressful situation. But, where there is a problem, there is always a solution.
Companies that borrow money exist for a very long time in our society. Moreover, their number is still increasing. Every person knows for at least ten companies that lend money in return for a particular interest rate. They also offer a different kind of services, depending on whether the person needs a short or long-term borrowing and how much money the person needs. A payday loan is maybe one of the most popular services among people. Most of us are faced at least once in a lifetime with the situation when we need a small amount of money to solve our problems. Payday loans are exactly that kind of financial help. These are the small amounts of money that we can borrow from a particular
company until our next payday, providing that we have the paycheck and that source of income. Of course, the amount of borrowed money will dictate the level of interest rate that you have to pay.
Different companies have different interest rates, so no matter how tempting and low it might seem at the moment when we desperately need money, it would be a good idea to check them all in order to see which one has the best offer, because when one is in trouble then everything might seem acceptable.
The process itself is not complicated and you will get the required amount of money very soon. Moreover, keeping up with the modern time where almost everything is digitalized, most of these companies have online services and application that you only need to fill in and prove that you have a paycheck. If everything is regular, then your money will be transferred to your account. After you receive your salary, the amount of money will be withdrawn from your account, including the amount of interest rate. It is pretty simple.
Payday loans can offer a quick solution to a financial problem but the level of interest rate is the thing that one must be aware if deciding whether to borrow money or not. The best thing is to think twice and decide wisely. Maybe it is not as urgent as it might seem at the first moment. Maybe the amount of money you will be obliged to pay will have the same result in the future and you will have to borrow money again. And this is really the beginning of a vicious circle.read more