5 Ways to Get out of Debt: Which Method Is Right for You?

Getting out of debt can improve an individual’s quality of life and open new doors. There are many unexpected events that can negatively affect a person’s personal finances and cause serious financial stress. Debt management is possible, however, and is available in many different forms. Some of the most common methods to get out of debt include credit counseling, debt consolidation, cash-out refinance, debt settlement, and bankruptcy.


Credit Counseling

Credit counseling is one of the best ways to help a person better understand the depth of their financial situation, and the options they have to improve it. A professional counselor acts as a liaison between the individual and their creditors to try to negotiate lower interest rates. They can also create a plan for the individual to organize and better manage their debt related expenses. This debt management plan allows the individual to make lower payments though their counselor, who then pays the creditors.

While credit counselors can be very beneficial, they do not have the ability to directly reduce the amount of debt an individual owes. Lowering interest rates is of course helpful, but the principal amount cannot be negotiated or changed. Speaking with a credit counselor can also give you a negative reputation among lenders. They may see you as a credit risk if you are having a counselor negotiate your account details. Also, credit counselors are not free, so the individual should be careful to know how much they are paying their credit counselor to avoid accumulating even more debt from this expense. Monthly payment amounts are often increased in debt management plans, which could leave the individual right back where they started.

Debt Consolidation

Debt consolidation is a very popular method that combines all outstanding debt across multiple creditors into one, single debt amount. A person can apply for a personal or debt consolidation loan so that they are only making payments to one creditor instead of multiple, often at a lower interest rate. All monthly payments are combined into one monthly payment of a determined amount.

Something to consider when using debt consolidation is that loans can at times require collateral. Collateral secures the loan through an asset owned by the applicant, such as their car or house. If the individual fails to pay the loan, these assets could be repossessed by the lender. Those who do not have collateral could expect to see higher interest rates when applying for a personal loan. Also, being approved for a loan will not reduce the principal amount of debt owed.

Being approved for a personal or debt consolidation loan requires good credit, which can be difficult for those who are already under financial stress. Fortunately, taking out one of these loans does not impact the credit of the applicant unless they are unable to pay the loan back. Terms of the loan are often customized to a certain degree to help the individual choose the best plan for their situation.

Cash-Out Refinance

Cash-out refinance lets homeowners work with a mortgage lender to help pay off their debt. Those who own a home can refinance their mortgage, add up the amount of debt they owe, then apply that amount to their current mortgage balance. They can then take that excess amount out in cash and use it to pay off the creditors, thus only having to repay the remaining balance to their mortgage company. This lowers the interest rate and creates one payment that is made each month.

Cash-out refinancing is only appropriate for homeowners with good standing credit, a steady income, and equity in their home. This is crucial to consider because many will need to choose this option before their debt gets unmanageable and hurts their credit, decreasing the chances of being able to use a cash-out refinance in the future. There are also other costs to consider when refinancing a home, including closing costs and the impact of increased mortgage debt.

Debt Settlement

Debt settlement, also known as debt resolution, is when a company that offers debt settlement tries to convince creditors to allow the debtor to pay a lower total amount than what is owed. The individual would then pay the settlement company that lower amount. Much like a credit counselor negotiates to lower interest rates, debt settlement negotiates to reduce the principal amount owed. If done correctly, this can be extremely beneficial to the individual. They can save a significant amount of money if approved.

Debt settlement, unfortunately, can put a damper on a person’s credit. However, credit can be rebuilt by consistently paying the new smaller monthly payments. This may be a good option for those who have already become financially overwhelmed and are facing repercussions for not being able to make their current monthly payments.

Bankruptcy

Bankruptcy is typically seen as a last resort for those who are entirely unable to pay back their debt. This is a legal process that is often extremely damaging to an individual’s credit and financial status. There are two different kinds of bankruptcy: Chapter 7 and Chapter 13. Chapter 7 is the most commonly used method that removes all debt from the individual, allowing them to start over. This can have devastating affects on the person’s credit, and they may even lose assets to cover the debt owed. Chapter 13 does not always completely clear a person of debt, but can lower the principal amount, so the individual owes much less. The individual then owes payments to the court who passes the money to the creditors. This can also severely hurt a person’s credit.

Can I Pay My Debt Myself?

There are ways a person can take control of their personal finances on their own. By organizing finances and using free tools online, those who are struggling to manage their debt can create a plan to help get back on track.

source: usa.inquirer.net

Great News for Homebuyers in 2019: Loan Limits Increase

Thinking about buying a home in the next year? You’re in luck.

The Federal Housing Finance Agency (FHFA) announced yesterday that for the third straight year they will increase the limits for mortgages backed by agencies that cover the vast majority of the home loans issued in the U.S. In 2019 they will increase the limit 6.9 percent, taking the limit from $453,100 to $484,350.

What does this mean for you as a homebuyer? It may allow you up to $30,000 more on an affordable loan option, particularly if you are looking to buy in a market with rising home prices.

This increase in loan limits is designed to help homebuyers keep pace with a more expensive market. Even as home prices rise, you can afford to buy a more expensive home with an agency conforming loan.

“These higher loan limits create more borrowing opportunities – whether you’re a potential homebuyer or a homeowner seeking to refinance,” says A. Wade Douroux, President and CEO of Resource Financial Services. “This gives homebuyers access to higher amounts through conventional lending – which is also good news for sellers this year.”

The knowledgeable mortgage bankers at Resource Financial Services can help you figure out if the new conforming loan limits apply to you. They can answer all your questions and have a wide range of programs that may benefit you.

“Get in touch with us soon to discuss how these loan limits can help you with a home purchase or refinance,” says Douroux.

Resource Financial Services exists to make people’s dreams of home ownership a reality. The mortgage lender offers experienced mortgage specialists who work hard to educate homebuyers about the wide variety of loan programs that can be tailored to meet individual financial needs. Homebuyers can expect quicker closings, same-day pre-approval, 5-Day Processing and guaranteed lower rates.

Call toll-free at 877.797.4545to speak with a mortgage banker or visit Resource Financial Services online at rfsmortgage.com to learn more.

source: resourcefinancialservices.com

Slow-moving lava sets house ablaze in Hawaii town

HONOLULU — A stream of lava set a home on fire Monday in a rural Hawaii town that has been watching the slow-moving flow approach for months.

The molten rock hit the house just before noon, said Hawaii County Civil Defense Director Darryl Oliveira. The home’s renters already had left the residence in Pahoa, the largest town in Big Island’s isolated and mostly agricultural Puna district.

 

Earlier in the day, lava burned down a small corrugated steel storage shed on the property, Oliveira said.

The lava from Kilauea volcano emerged from a vent in June and entered Pahoa Oct. 26, when it crossed a country road at the edge of town. Since then, it has smothered part of a cemetery and burned down a garden shed. It also burned tires, some metal materials and mostly vegetation in its path.

Firefighters will basically let a structure burn, but they will fight any wildfires that spread or threaten other structures, Oliveira said.

The county estimates the value of the home at about $200,000, Oliveira said.

Oliveira said officials would make arrangements for homeowners to watch any homes burn as a means of closure and to document the destruction for insurance purposes.

The leading edge of the molten rock had stalled Oct. 30, but lava was breaking away at several spots upslope. The leading edge remained about 480 feet (150 meters) from Pahoa Village Road, the main street that goes through downtown.

Crews have been working on alternate routes to be used when lava hits a major highway in a lifeline for the Puna district.

Many residents have evacuated or are ready to leave if necessary.

Imelda Raras lives on the other end of Apaa Street from where the lava burned its first house.

She and her family have put a lot of their belongings in storage and are ready to go to a friend’s home if the lava gets close.

source: newsinfo.inquirer.net

Obama Passes HARP and Helps Homeowners Save Huge

Obama is urging homeowners to refinance. Did you know that the President passed historic legislation that makes it easier for homeowners to refinance and saves them an average of $3,000/year?

The legislation is called the Home Affordable Refinance Program (HARP) and it does three really important things for homeowners.

1) Waives Refi Requirements

Obama’s mortgage program waives certain refi requirements for homeowners, making it much easier to qualify and take advantage of today’s still historically low rates. Some examples of requirements that have been waived are the need for an appraisal and credit score requirements. With requirements like these gone, millions of homeowners now qualify to refinance. The problem is people don’t know the program exists and they don’t know how much they could save by refinancing .

A free service that can help you see how much you could save by refinancing is LowerMyBills.com. You might be shocked at how much their network of lenders can save you.

2) Reduces The Amount Homeowners Owe

In his State of the Union, Obama told homeowners that if they refinance at today’s rates they could save up to $3,000/year. It’s amazing how many homeowners have sat on the sidelines, getting ripped off by banks as they keep paying mortgage rates in excess of 5%. If the rate you’re paying on your mortgage is above today’s historically low rates, you should  consider refinancing.

Think about how much money $3,000/year is over the life of your loan. If you have 25 years left, that’s $75,000. If you’re a homeowner, and you haven’t looked into refinancing recently, you should use this easy tool. It takes about 3 minutes to complete and helps you take advantages of today’s rates.

3) Pay Off Your Home In Half The Time

The President’s refi plan encourages homeowners to shorten their loans. Homeowners who switch from say a 30 year to a 15 year fixed rate mortgage not only pay their homes dramatically faster but they also get significantly lower rates. The savings for homeowners who opt to go this route end up saving huge. Savings can be as much as $805/mo.

Not only that, these homeowners are done with their mortgages altogether up to 15years faster. If you want to learn more about all the loan options available in the market, LowerMyBills can help you find out what would be best for you.

source: smarterlifestyles.com

Advantages of Renting a Home Instead of Owning

Right now, home prices (especially in the U.S.) are quite low, and mortgage rates are fairly low as well. A number of foreclosures means that there are cheap homes on the market. As a result, it is really tempting to buy a home. However, in some cases it might be to your advantage to keep renting. This has occurred to me as my family faces the prospect of moving and possibly selling our house, as well as the expenses associated with paying for a flooded basement. I’m wondering if maybe we should go back to renting. Here are some of the reasons that renting is looking tempting:


 Owning a Home is Expensive


Forget about the line from real estate agents about a home being a great investment or your biggest asset. Your home is a purchase. An expensive purchase. By the time you pay interest (even though you can get a tax deduction), property taxes, maintenance costs, repair expenses, insurance and utilities, the expenses really start to add up. Even if you do sell your home for more than you paid, it may not be enough to offset the accumulated expenses associated with owning a home for decades.

Renting, on the other hand, is usually less expensive. You aren’t responsible for the repairs or maintenance costs (unless you do something you shouldn’t), renter’s insurance is much cheaper than homeowner’s insurance, and you don’t have interest or property taxes. Depending on the market you’re in, a rent payment for a decent-sized home may be a couple hundred less than a mortgage payment. Some folks like to invest the difference, hoping for a better long-term return.

Greater Flexibility

 

If you aren’t going to be an area for very long, the flexibility of renting might be attractive. Aside from having to sign a one year initial lease, renting offers the ability for you to pick up and leave if you need/want to. We had hoped to be in our current home for a longer period of time, but, like so much in life, it isn’t working out. We will probably have to move to a new town, and that means trying to sell this house. If we were renting right now, we could just offer 30 days’ notice to the landlord and leave when ready. And, because we don’t want to be landlords, we will probably have to take a loss on the home when we sell it.

Bottom Line

 

ready to buy a home, and we might not rush into it in the next place we live. While we can afford to live in the house, the responsibility of it, and the expense associated with it, can be irritating at times — especially when I think that we are likely to be moving after staying in the home for less than five years.

In the end, carefully weigh the pros and cons of buying a home versus renting it. Think about what is likely to happen in the future, and whether or not the money you put into home ownership might be better used elsewhere.

source: financialhighway.com

Seniors struggle as land rent for manufactured homes rises

Terrence Thudium sits at a bluish-gray “almost-granite” countertop in his recently refurbished kitchen. He speaks with a combination of fear and fight. The disabled Vietnam War veteran uses words such as “extortion,” “ridiculous” and “exhausted.”

Thudium lives in Mountain View Community, a manufactured housing park for seniors in Henderson. He signed a 20-year lease for land there and settled in a manufactured home he purchased for $75,000. Over the next five years, he spent another $75,000 transforming it into his home. He tore down a hall wall for circulation, added ceramic tiles in the kitchen and redesigned just about every feature to make it perfect.

Thudium is proud of the investment but faces a dilemma. The rent for the land his house sits on has jumped from $680 to $747 in four years. He pays almost the same amount in land rent as his neighbors pay to rent land and a home.

When Thudium settled in Mountain View, park owner Hometown America Communities allowed only homeowners to rent land. When Equity Lifestyle Properties, Inc., took over the park earlier this year, they opened it up to renters.

Thudium can move his home off the lot, but that would cost him more than $5,000. For a 67-year-old, that’s not practical.

“If you try and pay $1,000 per month in mortgages and $800 in rent, you got no money,” Thudium said. “It’s ridiculous. It shouldn’t be this bad. It’s not like renting the house and the land ... which is going for the same dollar figure I’m paying for land. Isn’t that extortion?”

Thudium’s lease dictates that park owners can raise the land rent a minimum of 3.5 percent as long as they give 90 days notice. Thudium signed the lease believing that would only happen in inflation emergencies. He was wrong.

Equity Lifestyle Properties agreed to freeze land rent for the next two years. But there is nothing preventing the company from increasing rent afterward.

So Thudium is trapped at the mercy of the park owners, hoping his rent doesn’t extend beyond what his disabled veterans benefits and social security income can afford. He has already been forced to put off any vacations or trips home to Chicago. He dreads the day rent creeps above $900, the maximum he can afford.

“Look at all I got invested,” Thudium said. “I’m 67, I can’t do this crap again another time. I’m exhausted, and I’m not done with (fixing the house).”

Equity Lifestyle Properties did not comment.

For the past 13 legislative sessions, the Nevada Association of Manufactured Homeowners (NAMH), which represents manufactured home owners, has proposed a rent justification bill to help homeowners like Thudium.

The bill would require park owners to justify raises in rent to a board if rent is increased more than a certain percentage. Each time, it failed.

Doris Green, president of the NAMH, said land rent at many manufactured home parks in Clark County has skyrocketed since the recession.

If owners, often seniors, become sick or lose a spouse, many are forced to move out. That opens the door for the park to take ownership of the homes and rent them new tenants. Green said she sees it frequently at Cabana Park, where she lives.

“Now what we have in our own park is people who have moved out or abandoned their home, and now (the park owners) are renting it (out),” Green said. “We have about one-third of the park out to renters.”

Pat McHugh, 74, has lived in Mountain View for the past 14 years. As the economy faltered and rent increased, she watched friends leave the mobile home park as their savings dried up. McHugh, who runs Pat’s Sunshine Shuttle service for her neighbors but barely breaks even with the business, fears that when her lease is up, she will suffer a similar fate.

“I am very fearful that in another four years I will not be able to afford to live here,” McHugh said. “I love living here, but I may not be able to afford it.”

Still, not everyone in Mountain View worries about rent. Joanne Miller, 78, said she has had no issues but also knows she’s lucky to continue to work.

A rent justification bill could help allay residents’ fears. Bob Varallo, a consultant for the NAMH since 1997, said members will try again to get the bill passed. He has little hope they’ll succeed.

Outside Thudium’s home, a moat of red rocks surrounds the walkway. Visitors are forced to trek up his driveway and around the corner of his house to ring his doorbell.

He wants to put eight cement steps in place to make access easier, but paying $1,200 for it makes no sense to him.

Improving the land around his house is pointless, Thudium said. If he decides to move his home to a new lot, it won’t go with him. If he abandons the home, it only will make it a more attractive property for the park to rent out.

Thudium sees no way out of his predicament. He has tried writing letters to park owners, but they just scan back the page of the lease he signed agreeing to accept land rent increases.

Thudium beamed with pride the day he signed those documents. Now, he’s not so sure.

“First time I owned a house,” Thudium said. “Boy did I get stuck.”

source: lasvegassun.com

Hiring Builders in California – 3 Essential Tips

When it comes to building a home, you want to make sure that you have all your bases covered. Many people don’t stop and take a few moments to think about the options they have when hiring a contractor for building a new home or adding onto an existing structure. For anyone who is unsure what to look for in a professional builder, it’s important to look at the following list to get an internal dialogue started. Without the following tips, it is possible to hire a California home builder, but it might not go as smoothly. Remember, the following are just a few things to consider, but should be looked at as only part of the hiring process.


Reputation – The very first thing you should consider when hiring a contractor, or anyone who will be working on home construction, is their personal and professional reputation. In this modern day and age, it is easy to find information online. You can easily search for local contractors and construction companies on a search engine like Google. You can read reviews and visit company websites to get a better idea of their reputation and business practices. Before you even meet with a contractor, you can make sure they are well reviewed and have a good reputation. Most websites will even have image galleries so you can view completed project photos and more. Look for a company that has a good reputation online, and provides proper information before you hire. Making an educated decision in the hiring process starts with a company’s reputation and public image.


Estimates – When you narrow down your list of companies that you might potentially hire, it’s very important to get several estimates. In order to get accurate estimates that you can compare easily, it is important for you to be as specific as possible when explaining your building project. If you don’t get an estimate up front, you may very well end up paying more than you expected. Additional charges can happen for a number of reasons, so get estimates to avoid these surprises. Do not let yourself be fooled into just hiring anyone, take time to ask questions, look into several different choices that you might have in regards to materials, time frame, and more. Get the estimate for free and in writing and you’ll be in a good place to move forward.


Experience – The last thing that you’ll want to look into is the experience of your potential home builders. If you have checked out the reputation of a company and received an estimate, make sure that they have the experience you need. Whether you are looking for experience in new home construction or a home remodel California specialist, their area of expertise and years of experience could impact your hiring decision. There’s no real substitute for experience. When interviewing contractors, ask for references; an experienced professional will gladly share references with potential clients.

As stated before, the above are just three quick tips to help you hire the right builders in California or wherever your construction project might be. Making sure that you get the right company, at the right price for your needs is crucial. Set aside a good budget, and make sure that you don’t rush into your decision. It’s much more beneficial to take the time up front than to jeopardize your home construction project before it even begins.

Robert Wood has experience in home remodel California, home builder California, and commercial construction. He is the owner of Generation Homes, a well-established California construction company. Robert walks homeowners through home construction or home renovation projects to ensure peace of mind and satisfaction in craftsmanship.

Article Source:
http://www.articlebiz.com/article/1051534557-1-hiring-builders-in-california-3-essential-tips/

Bathroom Trends For 2012

Bathroom trends change year on year, and 2012 brings a whole new set of popular styles. These days, bathrooms are not simply a place to have your daily shower, but they are a place to relax and unwind, surrounded by smart and stylish interiors. Let’s take a look at the best bathroom trends of 2012.

Eco friendly design. One big trend for bathrooms this year is eco friendly designs. This includes clean, sleek bathrooms that are free of clutter and mess. Drain channels will also be hidden from view in order to add to the clean design.
Going natural. The natural look, made up of wooden bathroom furniture and honed stones such as granite, soapstone and marble are likely to be a popular trend this year. If you want to look after the environment, choose FSC-certified woods, which help to maintain the warm and natural feel. Wooden flooring is also likely to rise in popularity.

Textured shower curtains. Lacklustre shower curtains are a thing of the past, and 2012 will see an increase in homeowners purchasing stylish cotton or linen curtains. These curtains can transform your bathroom, and are no longer simply a necessity for showering, but a fashion statement. They can scream luxury and make your bathroom seem romantic as well as lavish.
Stylish Bath Accessories. 2012 is the year of bath accessories – towel bars in particular will see a rise in popularity, as they become so much more than somewhere to hang towels, and grab bars (no-longer just for old people!) will become standard in many homes. Of course, they will be stylish and sleek in design – completely contemporary.
Quiet & neutral colours. Popular bathrooms colours for 2012 will include soft greens, creams, whites and browns. Gold and silver will also play a part, as well as black and white decorating ideas. Louder colours such as reds and oranges will be used for accents.

So there you have it – 2012 will see natural, eco friendly bathrooms with clean, smart lines. If you’re planning to sell your home in the near future, it may be worth keeping these points in mind, as viewers will want a modern, contemporary bathroom that they will not have to update. The quiet, soft colours that are popular this year will last you well into the future, and will always be appealing for potential buyers, as they are not too overwhelming.

If you are looking for bathroom fitters Glasgow visit Tommywelshbathrooms.co.uk

Article Source:
http://www.articlebiz.com/article/1051540092-1-bathroom-trends-for-2012/

Obama urges passage of mortgage relief

WASHINGTON - US President Barack Obama on Saturday urged Congress to approve his plan to provide relief to millions of homeowners who are having trouble paying mortgages.

"In order to lower mortgage payments for millions of Americans, we need Congress to act," Obama said in his weekly radio and Internet address. "They're the ones who have to pass this plan."

The $5-10-billion plan, showcased by Obama this past week, would be financed by a portion of a fee on the most wealthy US banks.

The blueprint is intended to help borrowers who are up to date on their mortgages to refinance and take advantage of low interest rates, which could save an average of $3,000 a year.

It will simplify mortgage disclosure forms, so people can better understand the loans they take out and offer support to help those facing foreclosure to stay in their homes.

The plan also includes a government-led effort to make foreclosed properties that cannot be sold available to renters.

Obama urged people who agree with this plan to call, email or visit their representatives in Congress and demand its passage.

"Tell them to pass this plan," the president said. "Tell them to help more families keep their homes, and more neighborhoods stay vibrant and whole."

He cautioned, however, that "it will take time" for the US housing market to recover and for the economy to fully bounce back. — Agence France Presse

source: gmanetwork.com

Process of Applying Home Equity Loan

Finding the best home equity loan offers perhaps the most important step you will take in the complete process of applying for a home equity loan. It's very important to choose the best lender when applying for a home equity loan. In this way, homeowners can wisely compare loans and lenders before accepting any offer. There are multiple companies which offers home equity loan, so that means the market competition strikes the interest rate to better standards. You just have to shop around for you to obtain and get the best deal.

A lot of homeowners prefer to take a home equity loan, because the process is faster and cheaper instead of refinancing your home. One of the most important factors if you're considering a home equity loan is the effective interest rate on the loan.

Get the best mortgage loan capital to help you save money. There are several banks and company lenders that offer home equity loans and other forms of loans and the best way to find the best rates is to have time and do some research. Shop around at different banks and lending companies. Do not be afraid to negotiate a better deal. The terms of the condition will ultimately depend on your credit score.

ABC's of Getting a Home Mortgage Loan With The Current Economic Situation

With the current economic situation, a home equity loan is a good way for homeowners to access the cash potential of your home. Equity loan describes the money you borrow money from a seller who is willing to get the value of your home and suggest to the owners in the United States. It is a type of loan that makes the home equity as collateral for borrowing money. Lenders use their houses as collateral to convert monetary values for the various expenses such as house renovation, house remodeling, consolidation loans, etc. ....

 
The mortgage loans generally carry a lower interest rate loan you can get. The reason for this is that the risk for the lender is lower due to the type of guarantees that the loan is secured by. A home equity loan is seemingly an easy source of cash for the owners. Interest rates on home equity may not always be as low as your first mortgage, but they fall as much as that charged on your credit card or personal loan. If you choose a home equity loan, you must have a good idea of ??how much money to borrow. You will want enough to cover all costs of remodeling.

Choosing the right mortgage loan is an unpleasant task that every borrower has to do to ensure satisfaction and financial security. Be cautious and aware of the loan application of these costs if you can not pay the loan amount at the right time, you may lose your house that you did as collateral. Interest rates and monthly payments will remain fixed for the duration of the loan.

If you choose an adjustable rate mortgage, your monthly payment and interest rate will go up or down depending on the interest rate market. If interest rates rise, so your monthly payment. If you fall, your monthly loan payment will also be reduced.

Fixed rate home equity loans are perfect for those who are trying to borrow a large amount of money to finance home improvements at reasonable prices and usually takes place within 15 years. Choosing a fixed rate mortgage loan capital and get your money once, will not be tempted to borrow from the account again and gives the owner a certain budget of income and not worry about possibility of further payment.

Fixed rates give a guarantee to borrowers and stability. It is a good option when rates are low, fixed rates are a risk-free option.