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Tuesday, January 6, 2009
Something to remember: the costs of concluding a reverse mortgage will be lofty. It doesn't make a difference where you reside.
Usually, closing costs are around five percent of the home value, however if the house is considered on the low end in terms of worth, it could be up to 10%.
This can hit some borrowers hard when it takes them by surprise. Many times they consider the harshness of the transaction the loan company's fault.
So, who do we blame when there is no one else to blame? Mostly people like to point their fingers at the mortgage company. Those greedy pigs.
The totality of all the closing costs is made up of anywhere from 5 to 9 companies. And don't forget HUD.
If you look at what is known as a Good Faith Estimate of Costs, you will notice a litany of fees. Only one of these fees is charged by the actual lender. It is known as an origination fee.
Don't get me wrong, the origination fee is still substantial. But it is not the majority of the cost.
The largest fee, typically, is the FHA mortgage insurance premium. FHA charges two percent of the value of the home up to $417,000.
At the highest value of $417,000 FHA can charge over eight thousand dollars in mortgage insurance. The lender can only charge up to $6,000.
This is newly legislated by the way. I think its funny that the government has no problem capping how much money the lender can make, but they don't cap how much they can charge.
This is a side-note.. Did you notice all the phone calls wanting campaign donations? Yes, they are excluded from the National Do-Not-Call rules.
Anyway, another big bite out of the costs comes from the escrow company. They have several fees, including a transaction fee, insurance for the title, and others.
Also add in the official appraisal cost. Sometimes a land inspection is needed as well. These fees are pretty expensive.
I don't know about every states specifications, but rest assured there are other little factors that add to costs as well, and as I said in the beginning, the lender isn't the only one to blame.
Usually, closing costs are around five percent of the home value, however if the house is considered on the low end in terms of worth, it could be up to 10%.
This can hit some borrowers hard when it takes them by surprise. Many times they consider the harshness of the transaction the loan company's fault.
So, who do we blame when there is no one else to blame? Mostly people like to point their fingers at the mortgage company. Those greedy pigs.
The totality of all the closing costs is made up of anywhere from 5 to 9 companies. And don't forget HUD.
If you look at what is known as a Good Faith Estimate of Costs, you will notice a litany of fees. Only one of these fees is charged by the actual lender. It is known as an origination fee.
Don't get me wrong, the origination fee is still substantial. But it is not the majority of the cost.
The largest fee, typically, is the FHA mortgage insurance premium. FHA charges two percent of the value of the home up to $417,000.
At the highest value of $417,000 FHA can charge over eight thousand dollars in mortgage insurance. The lender can only charge up to $6,000.
This is newly legislated by the way. I think its funny that the government has no problem capping how much money the lender can make, but they don't cap how much they can charge.
This is a side-note.. Did you notice all the phone calls wanting campaign donations? Yes, they are excluded from the National Do-Not-Call rules.
Anyway, another big bite out of the costs comes from the escrow company. They have several fees, including a transaction fee, insurance for the title, and others.
Also add in the official appraisal cost. Sometimes a land inspection is needed as well. These fees are pretty expensive.
I don't know about every states specifications, but rest assured there are other little factors that add to costs as well, and as I said in the beginning, the lender isn't the only one to blame.
posted by Credit Counseling at
10:13 PM
0 Comments
Receiving our gas and electrical bills is certainly not the most pleasant experience. Despite not receiving a pleasant bill, many people quickly assume that there's nothing they can do to help it. In reality, there is a lot families can do to significantly reduce both their energy consumption and their utility bills. All this is possible by following the tips in this article.
One of the first things you should do is to simply compare the prices offered by different utility companies. Cheaper alternatives may be found by just looking. Utility companies are in fierce competition with rivals, which can only be a win-win situation for you and saving money.
It's possible that you may be living in an area where there is only one utility company. It's also possible that your utility company is already the most economical one. If this reflects your situation, then your next step to save money should be to reduce your energy consumption. This may seem impossible but it isn't. Even by applying very simple energy saving techniques, you can accumulate quite a large amount of savings.
Simply turning off the lights in rooms that are not being used is a great way to start saving energy. Many have a bad habit of leaving lights on in unused rooms. There's no doubt that such a habit can dramatically increase your utility bill over a long period of time. A simple change like that can potentially save you a sizeable amount of money over the course of a year.
Insulation is something to consider if you currently live in an older home. Insulation does wonders for cutting down the amount of heat that leaves your home. Insulation can allow your family to save a significant amount of money. If you have a boiler in your home, you may want to insulate that as well. This would also assure that your water is warmer during the cold months of winter. This process of insulation assures you savings both on the quantity of water and the heat used to heat it. In addition, insulation assures that your boiler reduces its wear and tear meaning that it will last longer.
There are those people who do not consider reducing their energy bill simply because they are convinced that it is out of their control. Nonetheless, there is a big possibility of saving a significant amount of money by simply looking for alternatives. The best part about cutting energy is that you're saving money as well as protecting the environment.
One of the first things you should do is to simply compare the prices offered by different utility companies. Cheaper alternatives may be found by just looking. Utility companies are in fierce competition with rivals, which can only be a win-win situation for you and saving money.
It's possible that you may be living in an area where there is only one utility company. It's also possible that your utility company is already the most economical one. If this reflects your situation, then your next step to save money should be to reduce your energy consumption. This may seem impossible but it isn't. Even by applying very simple energy saving techniques, you can accumulate quite a large amount of savings.
Simply turning off the lights in rooms that are not being used is a great way to start saving energy. Many have a bad habit of leaving lights on in unused rooms. There's no doubt that such a habit can dramatically increase your utility bill over a long period of time. A simple change like that can potentially save you a sizeable amount of money over the course of a year.
Insulation is something to consider if you currently live in an older home. Insulation does wonders for cutting down the amount of heat that leaves your home. Insulation can allow your family to save a significant amount of money. If you have a boiler in your home, you may want to insulate that as well. This would also assure that your water is warmer during the cold months of winter. This process of insulation assures you savings both on the quantity of water and the heat used to heat it. In addition, insulation assures that your boiler reduces its wear and tear meaning that it will last longer.
There are those people who do not consider reducing their energy bill simply because they are convinced that it is out of their control. Nonetheless, there is a big possibility of saving a significant amount of money by simply looking for alternatives. The best part about cutting energy is that you're saving money as well as protecting the environment.
About the Author:
Jenni Snook is the premier writer of http://www.HealthyWealthySoul.com, a website dedicated to giving individuals advice and tools on personal finance planning to achieve both financial and spiritual bliss in their lives.
posted by Credit Counseling at
4:31 PM
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One way you can make money buying and selling on the stock exchange is by day trading. This method uses the volatility of the market over the course of a given day to help traders make their money. Currently, we're in one of the most volatile markets since the late 1990s, making it one of the best day trading markets.
Day trading can use short selling to profit from stocks even if indicators say that the prices are dropping in the near future. In every case, day traders will be working through brokers, and they'll have to watch two major indicators. These indicators are the TDISC and the NDIX. At the beginning of a given trading day, these indicators will tell you a lot about what's going on in several exchanges. They're sensitive to volatile markets. When markets are going down, the TDISC drops by more than two thousand ticks in a very short time. When markets are rising, the NDIX increases by the same in under a half hour of opening.
The rapid fluctuations that can happen over the course of a single day are what day traders use to make their money. They have to buy and sell quickly. That's why day trading is both a great way to make a big profit and a fast way to lose it all. You're never buying for the long term, so it can be tempting to buy lots and skip researching. You might get lucky trying this, but most of the time it doesn't work.
Remember that day trading isn't a passive income source like some other methods. It's a job! If you're going to get into day trading, take a good Internet course or seminar, and make sure you know everything you need to get started.
In addition to basic knowledge, you will also require a brokerage account. After all, one of the big tricks for day trading is short selling. This is when you borrow a share of stock from the broker you work with, then sell it right away. You're planning to buy another share to give back to him with it comes due. When the price of stock goes down, you make a profit. Time things correctly and read the market right and you'll find things working out well. You can also move larger amounts using leverage.
The opposite of short selling is deciding to borrow or buy a share of stock at one price, then selling it the same day for a higher price.
Day trading means you're going to need good observational skills and incredible nerves. You also have to be willing to have a short memory. That's so that you can stare losses in the face without stressing out or going into a panic.
Now, it is possible to do day trading from home and to do well at it. Use the right programs and tutorials to find out everything you can, and make sure all trades are executed according to a careful plan. Be sure to get them done before the last half hour of the trading day in your market, as well.
Day trading can use short selling to profit from stocks even if indicators say that the prices are dropping in the near future. In every case, day traders will be working through brokers, and they'll have to watch two major indicators. These indicators are the TDISC and the NDIX. At the beginning of a given trading day, these indicators will tell you a lot about what's going on in several exchanges. They're sensitive to volatile markets. When markets are going down, the TDISC drops by more than two thousand ticks in a very short time. When markets are rising, the NDIX increases by the same in under a half hour of opening.
The rapid fluctuations that can happen over the course of a single day are what day traders use to make their money. They have to buy and sell quickly. That's why day trading is both a great way to make a big profit and a fast way to lose it all. You're never buying for the long term, so it can be tempting to buy lots and skip researching. You might get lucky trying this, but most of the time it doesn't work.
Remember that day trading isn't a passive income source like some other methods. It's a job! If you're going to get into day trading, take a good Internet course or seminar, and make sure you know everything you need to get started.
In addition to basic knowledge, you will also require a brokerage account. After all, one of the big tricks for day trading is short selling. This is when you borrow a share of stock from the broker you work with, then sell it right away. You're planning to buy another share to give back to him with it comes due. When the price of stock goes down, you make a profit. Time things correctly and read the market right and you'll find things working out well. You can also move larger amounts using leverage.
The opposite of short selling is deciding to borrow or buy a share of stock at one price, then selling it the same day for a higher price.
Day trading means you're going to need good observational skills and incredible nerves. You also have to be willing to have a short memory. That's so that you can stare losses in the face without stressing out or going into a panic.
Now, it is possible to do day trading from home and to do well at it. Use the right programs and tutorials to find out everything you can, and make sure all trades are executed according to a careful plan. Be sure to get them done before the last half hour of the trading day in your market, as well.
About the Author:
You can find all sorts of Day Trading Tips online so it's easy to get started learning about this exciting way to make money. Click Here for information on a trading system that has been making many people a healthy income.
posted by Credit Counseling at
4:15 PM
0 Comments
