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SBA Loan Rates – Current Interest Rates and How They Work, business loan rate.#Business

Business loan rate

Business loan rate

SBA Loan Rates Current Interest Rates and How They Work

There are three primary types of SBA loans: SBA 7A Loans, SBA Express Loans, and CDC/504 Loans. SBA 7A loans and SBA Express loans can be used for a wide variety of purposes, including growth capital and refinancing. CDC/504 loans, on the other hand, are specifically for the purchase of fixed assets like real estate and heavy machinery.

November 2017 Maximum interest rates on SBA 7A Loans range from 6.5 % to 9 %. Full Table

November 2017 Maximum interest rates for the CDC portion of CDC/504 Loans currently range from 4.08% to 4.43% including fees. Full Table

Before reading further, make sure you are qualified. Though there are exceptions, and startups are sometimes eligible, there are five general requirements for getting an SBA loan:

  • In business at least 2 years
  • Personal credit score is 680+ (check your score for free here)
  • Seeking at least $30,000
  • At least $50,000 in revenues for the past 12 months
  • Business is profitable

Sound like you? We recommend applying with SmartBiz. They are the best company we have found at providing quick turnarounds on SBA loan approvals, and you can find out how much you qualify for in 5 minutes.

Current SBA (7A) Loan Interest Rates and Explanation

The Small Business Administration (SBA) sets the maximum interest rates that banks can charge on 7A loans. The current maximum interest rate ranges from 6.5% 9%, depending on the size of the loan and the amount being borrowed.

The maximum interest rates on SBA 7A loans are also based on market interest rates. As market interest rates change, so will the maximum interest rates on these loans.

Maximum Interest Rates on SBA 7A Loans for November 2017

Detailed SBA 7(a) Interest Rate Explanation* Please note SBA 7A Express loans carry a higher interest rate for similar size amounts and terms than the standard 7A loans above. We recommend avoiding SBA Express loans as firms like SmartBiz can provide approval for the standard 7A with similar turnaround times.

As the table above shows, the maximum interest rate on SBA 7(a) loans is based on three factors:

  1. A base rate (one of the following publicly available interest rate measures): Prime Rate, LIBOR (one month) + 3.0%, or SBA Peg Rate
  2. The term of the loan: Less than 7 years or greater than 7 years. For example, 3 and 5 year loans would all fall into the same category of under 7 years.
  3. The size of the loan: Under $25,000, $25,000 to $49,999, and over $50,000. For example, loans of $30,000 and $45,000 will fall under the same category.

As the table shows, loans longer than 7 years have a maximum interest rate which is half a percent higher than similar size loans that are for terms that are less than 7 years.

Loans for more than $50,000 have 1% lower maximum interest rates than loans between $25,000 and $49,999 when taken for similar terms. Similarly, loans for $25,000 to $49,999 have 1% lower maximum interest rates than loans for less than $25,000.

Fixed vs. Variable SBA Interest Rates

7A loans can have a fixed or variable interest rate. With a fixed rate loan, the loan interest rate remains constant throughout the life of the loan. With a variable rate loan, the loan’s interest rate can change (often referred to as a reset) at regular intervals, such as quarterly or monthly.

With variable rate SBA 7A loans, the rate is reset based on one of three publicly available market interest rate numbers, plus a fixed percentage. The interest rate must always be at or below the maximum interest rate set by the SBA. For smaller size SBA loans (for example those under $500,000), banks tend to offer only variable rate loans, with interest rates at or close to the maximum allowable by the SBA.

The Base Rate And Interest Rate Resets

Banks can choose one of three market interest rate measures as their base rate. These are the prime rate, LIBOR + 3.0%, or the SBA peg rate. While there are small differences between these rates, they tend to track each other very closely. The Prime Rate is the one that s most commonly used.

Rates as of November 1, 2017:

  • Prime Rate: 4.25% (source: WSJ)
  • LIBOR (one month) + 3.0%: 4.24% (source: Bankrate)
  • SBA PEG Rate: 2.625% (source: National Association of Government Guaranteed Lenders)

These rates can go up or down based on market conditions. Currently, they are at decade low levels. Over the last 10 years, the Prime Rate has been as high as 8.3%.

With a variable rate SBA 7A Loan, as market interest rates rise so will the rate on the loan. Let’s take the example of a 10-year loan for $50,000 with interest rates rising by 2%.

The maximum interest rate on the loan currently would be 7.75%, with a monthly payment of $600 per month. With a 2% rise in interest rates upon the interest rate reset, the rate would be 9.75%, with a monthly payment of $654 (this would be the monthly increase for a newly issued loan. If the loan was older, the increase in monthly payment would be lower).

Interest Rates Are Not The Only Costs To Borrowing Money: APR/APY

When taking a loan, there is often an origination fee. This fee supposedly covers the costs of the bank or financial institution of making the loan, including marketing costs. However, the origination fee is not directly based on costs and is arbitrarily set by the financial institution. An origination fee of 4% is not unusual. The fee is typically taken “off the top”. For example, a borrower taking a $50,000 SBA loan with a 4% origination fee would only receive $48,000.

SBA 7(a) loans also have a guarantee fee. Initially, the lender pays this fee to the SBA, but it s almost always passed on to the borrower at closing. Currently, the SBA has waived fees for loans under $150,000. Above that, the fee typically ranges from 3 % to 3.5 % of the guaranteed portion of the loan. The exact percentage depends on the size of the loan and the length of the loan. For example, if a borrower takes a $250,000 10-year 7a loan, the SBA may guarantee 75 % of that, or $187,500. 3 percent of that amount, or $5,625, is the guarantee fee that will be charged to the borrower. For more info, click here.

The true cost of borrowing money (interest rate + fees) is often called the APY (Annual Percentage Yield) or APR (Annual Percentage Rate). On a ten year SBA loan, the effect of fees can create an APR or APY that is around 1% higher than the loan’s interest rate. The shorter the loan the bigger the impact that fees will have on the APY/APR.

What size SBA loan could you qualify for? Apply with SmartBiz and get an estimate in minutes.

November 2017 SBA Loan Rates On Real CDC / 504 Loans

The Small Business Administration (SBA) sets the maximum interest that banks can charge on CDC/504 loans. The current maximum interest rate ranges from 3.83% to 4.56%, depending on the size of the loan and the amount being borrowed.

The maximum interest rates on CDC/504 loans are also based on market interest rates. As market interest rates change, so will the maximum interest rates on these loans.

While a 7A SBA Loan can be used to purchase real estate, a Real CDC / 504 Loan will tend to provide borrowers with tremendous interest rate savings. A CDC / 504 loan is composed of two loans:

  1. A loan from a financial institution (bank) for typically 50% of the price of the property, equipment, and building upgrades.
  2. A loan from a Certified Development Company (a non-profit) for 40% of the price.

The remaining 10 % is a down payment from the borrower. The interest rates on the bank portion of the loan are not set by the SBA. However, the interest rates on these loans tend to be very low, currently in the mid-single digits. Because the bank loan is senior to the CDC loan and the loan is backed by real-estate, there is a low risk that the bank will not be able to get back the money it loans. The low-risk is reflected in the low-interest rates.

The maximum interest rate on the CDC portion of the loan is set by the SBA.

If you re in the market for commercial real estate and will occupy at least 51% of the space, you may be a good candidate for an SBA 504 loan. We recommend working with Liberty SBF for SBA 504 loans. If you have credit score is above 680 (check here for free), you ve been in business 4+ years, are profitable, and need more than $1,000,000, speak with Liberty SBF today.

If you need a commercial real estate loan of $500,000 $5,000,000, another option is a 7(a) loan with a 25-year repayment term. If you have a credit score above 680 (check here for free), you ve been in business 3+ years, are profitable, and will occupy at least 51% of the space, get prequalified in minutes with SmartBiz.


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Compare Business Finance Products Today at MoneySupermarket, business loan rate.#Business #loan #rate


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Business finance in general

When it comes to managing your business finances, it’s not all that different from managing your personal finances.

The key difference is the fact you want to seek out products that are specifically designed for business use, as these will offer better rates as well as other features aimed at making running your business easier for you.

Who business finance is for?

Business finance is for any type of business, no matter how big or small.

You may want to think about business finance if you operate as a sole trader, or if you are a limited company – or if you are anything in between.

Who can apply?

Anyone who owns a business can apply for business finance, but you must remember that with some products, such as business loans, it may be difficult to get accepted in the current uncertain climate.

As a general rule, those businesses with the cleanest credit record have the best chance of getting accepted – and of getting the best rates.

What products are available within business finance?

There are a wide range of products available within business finance offered by numerous different banks and other financial organisations, including business current accounts, business credit cards and business loans.

Each product on offer in business finance has been designed with business in mind, and will help you to run your business operations more smoothly.

Why are we the best website for business finance products comparison?

If you’re looking for business finance products then you need look no further, as we compare hundreds of deals from different providers in one place to seek out the very best deal for you and your particular needs.

We offer a free and independent comparison tool, and also have access to exclusive deals on business finance products that you won’t be able to find anywhere else.


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Small Business Loans, TD Canada Trust, business loan rate.#Business #loan #rate


Small Business Loan

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Small Business Loans

Business loan rate

Available Fixed or Floating Interest Rates for Small Business Loans

Flexible Business Loan Payment Options

A Business Loan 1 can help you purchase or upgrade business assets, or help with your expansion plans. The choice is yours.

Secured or unsecured options

  • Available as an unsecured loan 2 in amounts from $10,000 to $50,000
  • Also available as an asset secured loan in amounts from $10,000 to $1,250,000. Flexible security options 3 include:
    • Business real estate
    • Residential real estate (full or partial)
    • Liquid or margin security (full or partial)
    • Business assets

Flexible payment options

  • Choice of 1 to 5 year fixed-rate terms
  • Amortization up to 20 years, based upon the useful life of the asset financed

Fixed or floating interest rates available

  • Floating interest rate options based on TD Prime Rate with no prepayment penalties.
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Business Loans – Check Business Loan Interest Rate – Eligibility Online at HDFC Bank

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Business Loan

  • Features Benefits
  • Eligibility
  • Fees Charges
  • In – Principle loan eligibility in 1 Minute online and across all branches
  • Convenience of contacting us through SMS, Webchat, Click2Talk, PhoneBanking and across all Branches
  • Business Loan is also available on the basis of repayment of home loans, auto loans and credit cards.
  • Loan Amount up to Rs. 15 Lakhs (Up to Rs. 40 Lakhs in selected locations).
  • Flexible repayment options ranging from 12 – 36 Months.
  • Credit Protect Insurance Plan:
    We help you take care of your loved ones with a Credit Protect Plan to cover your loan at a nominal premium.*

In case of Natural / Accidental Death of the customer, the customer / nominee can avail of the Payment Protection Insurance (Credit Protect) which insures the principle outstanding on the loan up to a maximum of the loan amount.

We will charge a premium for this product, and the premium amount will be deducted from the loan amount at the time of disbursal. We will also charge service tax and applicable surcharge/cess at the rates notified by the government.

Secure your business loan with Credit Protect.

Key benefits of policy

  • Protects the family by paying off the loan amount in case of death of the customer
  • Life Coverage provides peace of Mind
  • No need to use other savings to repay the loan
  • Tax Benefits as per applicable laws
  • One convenient package – loan + insurance

* Premium will be charged for Credit Protect will be deducted from the loan amount at the time of disbursal.

(* terms and conditions of the Insurers shall apply, Above product is offered by HDFC Life Ins Co.ltd)

Already have a Business Loan?

Reduce your EMI, transfer your existing Business Loan to us. Business Loan balance transfer offers special and exclusive benefits.

  • Interest rate as low as 14.99* % on existing loan transfer.
  • Processing fees as low as 0.99%

Now reduce your EMI burden with our balance transfer programme

Get details on eligibility criteria documents required for HDFC Bank Business Loan

Self Employed including Individual Proprietors, Private Ltd. Co. and Partnership Firms involved in the Business of Manufacturing, Trading or Services.

  • Minimum Turnover of Rs. 40 Lakhs.
  • Years in business: Minimum of 3 years in current business and 5 years total business experience
  • Business must be profit making for the last 2 years
  • Minimum Annual Income (ITR): Rs. 1.5 Lakhs p.a.
  • Age of Applicant: Min 21 years Max. 65 years at the time of loan maturity.

Documents you will need to submit:

  • PAN Card For Company /Firm/ individual.
  • Proof of your identity: Copy of Aadhaar Card/Passport/Voter s ID card/driving license.
  • Proof of your address: Copy of Aadhaar Card/Telephone bill/Electricity bill/Passport.
  • Bank Statement (latest 6 months)
  • Latest ITR along with computation of income, Balance sheet and Profit Loss a/c for the last 2 years. Financial should be CA Certified /Audited.
  • Proof of continuation (ITR/Trade license /Establishment /Sales Tax certificate)
  • Other Mandatory Documents (Sole Prop. Declaration Or Certified Copy of Partnership Deed, Certified true copy of Memorandum Articles of Association (certified by Director) Board resolution (Original)

Loan at the sole discretion of HDFC Bank Ltd.

Enclosed below are HDFC Bank Business Loan Interest Rates Charges


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Term deposit account #term #deposit,high #rate,fixed #rate,interest #rate,savings,yorkshire #bank


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Term deposit account

Making your savings grow

Decide how long you’d like to save – from three months to five years – then once your term deposit is opened, sit back and watch your money earn a guaranteed rate. Our term deposit account is ideal if you want to put away a lump sum – as long as you don’t want to make any withdrawals or additional deposits.

Features
  • Guaranteed interest rates – up to 2.08% Gross*/2.00% AER +. This rate is available on the 5 year Term Deposit – Interest Capitalised at Maturity account.
  • Minimum deposit of £2,000 – Maximum deposit of £5,000,000.
  • Withdrawals or early closure are not permitted during the fixed term.
  • See interest rates tab for terms available, interest rates and how this is paid to you. Our summary box is a recap of our key product information
Withdrawals are not permitted

Please note withdrawals or early closure of the term deposit are not permitted under any circumstances during the fixed term except in the event of the death of the Account Holder (or one of them if joint account). See term deposit terms and conditions (PDF, opens in new window) clause 2.3 for further information, if there is anything that you don’t understand please contact us for clarification.

*Gross rate interest is the interest payable without taking account of any tax payable. From 6th April 2016 we no longer deduct tax from the interest earned on your savings, following the introduction of a Personal Savings Allowance. If you earn interest over your Personal Savings Allowance you will be required to pay any tax due yourself directly to HM Revenue and Customs. If you would like to read more about your Personal Savings Allowance, please visit the Government website www.gov.uk.

+ AER. Annual Equivalent Rate illustrates what the interest rate would be if interest was paid and compounded once each year.

For new Term Deposits – The rate in force on the day your Term Deposit is opened will be the rate applied to your new account for the fixed term.

For existing Term Deposits that are due to mature – The rate in force on the day your Term Deposit is reinvested will be the rate applied to your account for the fixed term. For more information on your options please refer to the letter sent out 35 days prior to your maturity date.

Interest capitalised and paid at maturity – interest will be credited to the account on the maturity date.

Apply in Branch

A Yorkshire Bank current or savings account must remain open in order for the monthly or annual interest to be paid in to.

The terms and rates offered for Term Deposits are constantly reviewed. As a result the length of the terms offered may vary.

*Gross rate interest is the interest payable without taking account of any tax payable. From 6th April 2016 we will no longer deduct tax from the interest earned on your savings, following the introduction of a Personal Savings Allowance. If you earn interest over your Personal Savings Allowance you will be required to pay any tax due yourself directly to HM Revenue and Customs. If you would like to read more about your Personal Savings Allowance, please visit the Government website www.gov.uk .

+ AER. Annual Equivalent Rate illustrates what the interest rate would be if interest was paid and compounded once each year.

How to apply

Use the online application process to complete and print an application form and fill it out with exception of the 3, 6 and 60 month term deposit. Send on to the following address – no postcode required – but please note that it is important to ensure the FREEPOST address is written on one line as:

FREEPOST YORKSHIRE BANK TERM DEPOSIT ADMINISTRATION

Along with your application, you should send a cheque for the amount of your deposit. The cheque must be written from an account in the applicant’s name and made payable to the person named on the application form. For joint applications, you can send a separate cheque for each applicant if you wish.

When we receive your signed application, we will process it as quickly as possible.

  • After your cheque has cleared, we will open your account
  • Within 14 working days we will send you a certificate and covering letter confirming your new term deposit details
Apply by phone

Call 0800 587 5000 (Monday to Friday 8.00am – 8.00pm, Saturday 9.00am – 5.00pm, Sunday 10.00am – 4.00pm)

Apply at a branch

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Reverse Mortgages: Best Deals – CBS News #reverse #mortgage #rate


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Reverse Mortgages: Best Deals

How can I get the best deal on a reverse mortgage?

1. Choose a Home Equity Conversion Mortgage (HECM). For most borrowers, it’s the right loan.

2. Compare the HECM with one of the jumbo loans if you have an expensive house. Sometimes the jumbo wins. Often, however, ‘ll find that the HECM gives you all the cash you need, while saving you thousands of dollars in costs.

3. Look beyond the upfront cash the lender offers. A jumbo lender might provide a higher credit line at the start. But because ‘s credit line grows every year, HECM will probably provide you with much more money in the end. Your HEMC counselor can help you figure this out.

4. The most expensive way to borrow is by taking a lump sum up front. You pay interest and fees on the whole amount, even though you intend to use only part of the money each month. Fixed monthly payments aren’t much better because your income won’t rise with inflation. The best option is taking the loan in the form of a credit line. That way, you can draw money as needed and will be charged interest only on the amounts you actually use. What’s more, a HECM credit line rises every year, so your borrowing power and future income will go up.

5. Reverse mortgages carry all the fees of regular mortgages and then some. You might pay $15,000 to $20,000 up front.

6. Most of these loans charge variable interest rates, adjusted annually. HECM gives you three choices:

  • A loan with a rate that adjusts monthly. You get higher monthly payments and a lower initial interest rate than on the alternative choices. Over the life of the loan, however, the rate can rise by up to 10 percentage points.
  • A loan whose rate adjusts annually. You get smaller payments and a higher initial interest rate. The rate can rise by up to 2 points per year and 5 points over the life of the loan.
  • A loan with a rate that never changes, but there’s a catch. You have to take the whole amount as a lump sum.

7. Finding the lowest-cost loan is tricky. Normal comparisons of rates and fees don’t work. Reverse lenders are required to calculate a Total Annual Loan Cost, or TALC rate, based on all projected costs. The TALC rate is far from a perfect disclosure, but it lets you compare two loans in a reasonable way. Always ask for the TALC rate.

You can get a better, more customized cost estimate from a good reverse mortgage counselor. The counselor should be working with special computer software developed for this purpose by the AARP. The program lets you enter specific interest rates, possible rates of home appreciation, and the rate at which you’ll draw money from your credit line. That shows you how the costs of the various loans change over time.

8. If your home rises substantially in value or interest rates drop, you might want to refinance your reverse mortgage. You’ll pay the closing costs all over again, so ask the mortgage counselor to show you, in real numbers, all the pros and cons.

Excerpted from Making the Most of Your Money Now by Jane Bryant Quinn

Copyright 1991, 1997, 2009, by Berrybrook Publishing, Inc. Reprinted by permission of Simon Schuster, Inc


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O-Fleet – Car Rental Management Software – Rental Management #car #rental #software, #car #hire

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Rental Management

Handle your reservations and rentals in a seamless way

Manage your reservations, plan your fleet utilization and keep tabs on your deliveries and returns calendars efficiently

Availabilities calendar

  • Display your vehicles availability calendar with regards to the commercial class, the transmission type and the ACRISS code of each vehicle.
  • Use the “Drag-and-Drop” feature to easily replace vehicles assignments on any rental.
  • Display your vehicle’s planned work orders in the availabilities calendar along with the reservations and avoid any overlaps or mix-ups.

Rental management tools

  • Handle short or long-term reservations from different sources (phone, walk-in or via the website’s booking engine).
  • Manage additional extras (equipment and insurances/waivers)
  • Get an at-a-glance view on the current status of each rental.
  • Keep everyone informed about your clients’ special requests, comments or delivery/drop off information. Save their arrival/departure flight numbers as well as their staying hotels.
  • Record all accidents, tolls and fines occurred during the reservation. Bill the amount directly to the client.

Vehicle Inspection

  • Define your own inspection checklist with items such as radio tape, lifting jack, seatbelts.
  • Create and fill online pick-up and drop-off inspection sheets to compare the vehicle state before and after rental for any loss or damages (scratches, dents, dings and cracks).
  • Record vehicle delivery and return information including the agent, the odometer value, the fuel level and the vehicle condition before and after rental.
  • Display and print the scheduled pick-ups and drop-offs of the day and assign the vehicles delivery or return to agents.

Electronic Documents

  • Generate automatically a printable rental agreement, inspection statements and customer invoices.
  • Enable your clients to sign electronically the rental agreements and inspection sheets on a signature pad device.
  • Print the rental contracts with both the signatures of your clients and assigned agents without having to ask them to sign again.

Invoicing management

  • Generate automatically your rental invoices and send them to your clients.
  • Track your clients payments, visualize your clients balances and display paid and outstanding amounts.
  • Manage your long-term rentals and generate recurring monthly invoices automatically.
  • Integrate O-Fleet invoicing with your favorite accounting software. We currently support Quickbooks and Xero software.

Ready to boost your fleet productivity ?

Try O-Fleet for free and learn how to unleash the power of your fleet.


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How to get the best mortgage rate #what #are #points #on #a #mortgage #rate


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How to Get the Best Mortgage Rate

You can trust that we maintain strict editorial integrity in our writing and assessments; however, we receive compensation when you click on links to products from our partners and get approved. Here’s how we make money .

Buying a home is a huge financial commitment. Finding the right mortgage (and how to get the best mortgage rate) can be a confusing process — especially for first-time homebuyers. Comparison shopping is the key to getting the best deal, and you’ll want to ask yourself, “How much house can I afford ? before getting too far into the process.

Here are six important questions to consider when deciding which mortgage is right for you:

1. Should I get a fixed- or adjustable-rate mortgage?

Mortgages generally come in two forms: fixed or adjustable rate. Fixed-rate mortgages lock you into a consistent interest rate that you’ll pay over the life of the loan. The part of your mortgage payment that goes toward principal plus interest remains constant throughout the loan term, though insurance, property taxes and other costs may fluctuate.

The interest rate on an adjustable-rate mortgage fluctuates over the life of the loan. An ARM usually begins with an introductory period of 10, seven, five or even one year, during which your interest rate holds steady. After that, your rate changes based on an interest rate index chosen by the bank.

ARMs look good to a lot of homebuyers because they usually offer lower introductory rates. But remember, your rate could go up after your introductory period, so be sure you’re comfortable with the chance your monthly mortgage payment could rise substantially in the future. As you try to figure out how to get the best mortgage rate. Use the terms of the loan to calculate what your payment might look like in different rate scenarios.

2. Should I pay for points?

A point is an upfront fee — 1% of the total mortgage amount — paid to lower the ongoing interest rate by a fixed amount, usually 0.125%. For example, if you take out a $200,000 loan at 4.25% interest, you might be able to pay a $2,000 fee to reduce the rate to 4.125%.

Paying for points makes sense if you plan to keep the loan for a long time, but since the average homeowner stays in his or her house for about nine years, the upfront costs often outweigh interest rate savings over time.

Alternatively, there are negative points. It’s the opposite of paying points: A lender reduces its fees in exchange for a higher ongoing interest rate. It’s tempting to reduce your upfront fees, but the additional interest you pay over the life of the loan can be significant. Carefully consider your short-term savings and your long-term costs before taking negative points.

3. How much should I expect to pay in closing costs?

Closing costs usually amount to about 3% of the purchase price of your home and are paid at the time you close, or finalize, the purchase of a house. Closing costs are made up of a variety of fees charged by lenders, including underwriting and processing charges, title insurance fees and appraisal costs, among others.

You’re allowed to shop around for lower fees in some cases, and the Loan Estimate form will tell you which ones those are. Shopping for the right lender is a good way to find the best mortgage rate, and save money on a mortgage and associated fees.

4. Do I qualify for any special programs?

Before you settle on a mortgage, find out if you’re eligible for any special programs that make home-buying less costly. For example:

    • VA loans. If you or your spouse are active military or veterans, you might qualify for a VA loan. Such loans allow low (or no) down payments and offer protections if you fall behind on your mortgage.
    • FHA loans: Like VA loans, an FHA loan allows low down payments, but they’re open to most U.S. residents. They’re popular with first-time homebuyers, because they require as little as 3.5% down and are more forgiving of low credit scores than traditional lenders.
    • USDA loans. If you live in a rural area, the USDA might give you a low- or no-down-payment mortgage and help cover closing costs. Like VA loans, USDA loans can also offer help if you fall behind on your payments.
    • First-time homebuyer programs: If this is your first go-round in the homeownership process, check out the HUD website for helpful information and a list of homebuyer assistance programs in your state.

5. How much can and should I put down?

Generally speaking, a lower down payment leads to a higher interest rate and paying more money overall. If you can, pay 20% of your home’s purchase price in your down payment. However, if you don’t have that kind of cash, don’t worry. Many lenders will accept down payments as low as 5% of your home’s purchase price.

Be aware: Low-down-payment loans often require private mortgage insurance. which adds to your overall cost, and you’ll probably pay a higher interest rate. Put down as much as you can while maintaining enough of a financial cushion to weather potential emergencies. As you ask potential lenders how to get the best mortgage rate. many will tell you that the more money you put down, the lower your rate will be.

NerdWallet s mortgage rate tool can help you see rates available to you with varying downpayments and purchase prices.

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Drug and alcohol recovery outcome and success over the long-term: Alcoholism and heroin addiction

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Drug and alcohol recovery outcome and success over the long-term: Alcoholism and heroin addiction and recovery may not be so bleak

Alcoholism may have a better prognosis than previously expected

Addiction psychiatrists and psychologists are often asked about successful recovery rates for addicts and alcoholics in their clinics and practice and until recently there have been few data to support most therapist s claims. Until now we have have relied on older research suggesting that when all studies and research is considered together that roughly ten to 30% of individuals in treatment for drug and alcohol use at any time will actually be clean and sober one year from the time they are initially assessed. Looking at it from this perspective has been particularly bleak. However, when considered from a longer term perspective, recovery rates for both hard drug addiction and alcoholism fare much better. Furthermore, in the past ten years there have been advances in the quality and quantity of longitudinal (long-term) research which supports claims that most individuals grappling with drug addiction or alcoholism eventually recover. Some even recover on their own without drastic intervention. These studies span from three to six decades of tracking the same subjects in terms of their drug or alcohol use and the consequences, mortality and acid test of abstinence and sobriety in their lives.

One such study in the March 1996 American Medical Association Archives of General Psychiatry concluded that alcoholics who had achieved five years of sobriety were much less likely to relapse than those with less sobriety time. Not exactly rocket science but finally there was solid research to back up common intuition about alcohol abuse and alcoholism recovery. George Vaillant MD published this famous study in 1996 and it received much attention and acclaim especially because of the magnitude of the work. They followed 724 men over a 50 year period to achieve their results. Relapse occurred 40 percent of the time after two years of sobriety but was rarely reported after five years of abstinence. Another major result worth noting is that in their study cohort there were two samples, one of college students and one of more disadvantaged subjects. Disadvantaged alcohol abusers were more likely to be sober over the long term which flies in the face of expectation. It is believe that this is actually because their situation demands it. When you are disadvantaged and struggling socially and economically there just isn t much room for alcoholism. Whereas the college educated and more socio-economically privileged subjects in the study sample were able to have their drinking excused. This doesn t bode well for the functioning alcoholic and suggests that sometimes a good career, family and economic resources and support are actually a disadvantage and present risk factors which can enable alcoholic drinking for some time. Go figure, but then again, this also has face validity (i.e. it just makes intuitive sense.)

In a follow-up study to Vaillant s 50 yr study, ten years later the same subjects were assessed. Vaillant reported that their results were similar to the results found in eight other similar studies. No major surprises. The death rate for alcoholics was 2-3 times the death rate of a non-alcoholic population. In general, they found the main factors critical for recovery were finding a substitute for alcohol use, close supervision, new relationships and involvement in some sort of spiritual programs. Since Alcoholics Anonymous comprises all these, AA involvement was the best predictor of abstinence. There was again the same finding of one major paradox. Socially disadvantaged men and men with early onset of alcoholism with strong family histories of alcoholism were more likely than other men to be sober. These men did better than men who were highly educated and had higher socio-economic privilege. In summary, the most severe and least severe alcoholics were most likely to have the best long term chance of remission.

Heroin Addiction seems to have a better outcome than previously expected over a person s lifetime.

Now turning our attention to heroin and opiate/opioid addiction. In a 33 year follow up of Narcotics addicts the Archives of General Psychiatry in May 2001, reported that it took a full five years of abstinence before heroin users would have a considerably reduced risk of relapse and that still a quarter relapsed after 15 years of abstinence. Compared to Vaillant s research with alcoholism this suggests that heroin is an altogether more challenging disease.

Another recent study is a little more promising. In the British Journal of Psychiatry in 2005 heroin dependence was assessed over 33 years and these researchers found very simply that the percentages of addicts achieving and maintaining long term abstinence increased over time and the percentage of those addicted declined over time suggesting that the majority of addicts who are compliant with some recovery plan will eventually become clean and sober or maintained with treatment. These major long term research studies into recovery rates for alcohol and opioid/opiate addiction shed a more optimistic light on recovery from addiction. It used to be that while in inpatient treatment for drug and alcohol abuse therapists and counselors would tell patients to look around the room at the people in their group. They would say for example that in this group of ten people only three of you are likely to be clean and sober one year from now. These recovery rates are actually fairly accurate but maybe what we should be telling clients is something more hopeful. It appears that if we look at lifetime recovery rates there is a good chance that most of you in the room will eventually recover. It s interesting to compare compliance to treatment and recovery among the disease of addiction and alcoholism to other diseases and their respective compliance to treatment and recovery regimens for diseases like diabetes, hypertension and asthma. In fact, researches have suggested that with these latter diseases the recovery rates are even more bleak. That with diabetes even fewer people will take their medicine, exercise and eat healthily and avoid people, places, and things, like chocolate cake. For diseases like diabetes, hypertension and asthma, recovery rates and compliance is more likely to be something like 8-25%. Yet addicts and alcoholics have a slightly better compliance and recovery rate approximating between 10-30 percent. The reason for this may be what Vaillant and other researchers found in these landmark studies. When addicts and alcoholics go to Alcoholics Anonymous they meet supportive people who remind them to be healthy, take their medicine, go to meetings, avoid people places and things, work the steps and call their sponsor. Someone struggling with diabetes or asthma may not be so lucky. To be sure alcoholism and heroin addiction are deadly diseases but many people can recover and do recover with sustained hard work and social support. In Alcoholics Anonymous it is said that alcoholism ends in jails, institutions or death. We should now actually be more hopeful. It is more likely that alcoholism and addiction will end in recovery.

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Mindfulness Based Addiction Recovery

College students in recovery from addiction in Philadelphia and Montgomery County: Alcohol and drug use in local colleges is met with strong recovery as students find meaning and purpose in Alcoholics Anonymous and Narcotics Anonoymous


  • Alcohol Calories and Health: A Philadelphia Psychologist Reviews the Data


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