Lending money is a touchy subject that not many people would like to talk about.

It gets even more touchy during a down economy like the one we are currently in. It's not uncommon to be asked to be bankers for a loan to a family member who may need some extra money  to get through unemployment, or maybe to make a down payment on a home, improve home project, pay for car loan or any financial needs. When you borrow money to your family member you should secure yourself in case your family member default on your loan. How to get around with this? Simple fill out Promisory notes with them that will show how much money you have borrow to them, what is the terms how much interest rates you will charge them and when should they pay you back.Promissory notes is a   contract where one party the issuer  makes an unconditional promise in writing to pay a sum of money to the other the payee with is you the lender, either at a fixed or determinable future time or on demand of the payee, under specific terms according to Investopedia. Please find attached Promissory notes below

FOR VALUE RECEIVED, the undersigned jointly and severally promise to pay to the order of , the sum of ($___.00 together with interest thereon at the rate of %(_)per annual on any unpaid balance.

Said sum, inclusive of interest, shall be paid in (monthly/weekly) installments of $___ each, with a first payment due,(date) 20 , and a like amount on the same day of each (month/week) thereafter until the full amount of this note and accrued interest shall be fully paid.

All payments shall be first applied to accrued interest the balance to principal. The undersigned reserves the right to prepay this note in whole or in part without penalty.

This note shall be fully payable upon demand of any holder in the event the undersigned shall default in making any payments due under this note within days of its due date.

In the event of any default, the undersigned agree to pay all reasonable solicitor fees and costs of collection to the extent permitted by law. This note shall take effect as a sealed instrument and be enforced in accordance with the laws of the payee's state.

Dated: ____________________.

 

___________________________
Undersigned

Many home seekers are looking to obtain mortgage with a bad credit but they are unable to

do so because bank is rejecting their application due to lack of credit and low credit

score. What should mortgage seeker do to obtain a mortgage with low interest rates? If you

want to obtain great mortgage rates you should do your homework and follow simple steps.

People don’t want to pay highest fee for loan application, closing cost or highest Annual

Interest rates (APR).
The best efficient way to make sure your home loan goes through is to  to fix your credit

by paying off most  bills, remove any derogatory account, late payment, and increase credit

limit on existing financial product.  If you have some extra cash pay off some of your

bills before you apply for the home loan. By doing this, you can show the lender that you

are making a conscious effort in trying to make your credit better. Find out what is your

credit score (remember checking Fako score doesn’t help you at all, you should check FICO

score from all tree credit report agency, Trans Union, Experian and Equifax) and see if you

can raise it up or what you have to do to raise the score to improve your chances of being

able to qualify for a mortgage. The higher your credit score is, the easier it is to get

the loan you need to get the house you want to purchase. The most important thing when you

are looking to get a mortgage is to make sure all of your previous loans and bills are paid

on time and don’t max out your credit cards to pay off your bills because it will just hurt

you in short and long run. If creditors see that your credit debt ratio is above 50% they

may consider you as a risky person and will reject your mortgage loan application.

Many people are refinancing their home mortgage in order to save on interest rates. Bankers often call it “renewal your mortgage” because you actually

dealing with new loan and want to get rite of old “high interest” loan to save money. Many people don’t understand how refinancing work, talking with

your banker on the phone sign in few papers in the branch does not help you in refinancing your loan.

So what is refinancing in reality?

Refinancing is using for getting access to the equity in your property.  Refinancing is a necessity for many people because refinancing gain access to extra

money for the house or other expense. People want to use some of home equity that has built up in their property. This means that owners need to

negotiate with a banker for a new mortgage with“cash back” at a higher amount than they had before. Another reason why people refinancing their

interest rate on their mortgage is because they have variable interest rate that change very often or have high interest rates on their loan. If you

negotiated a mortgage when your credit rating was not as good, and you have repaired your credit now through a good track record of payments, you

should certainly refinance but before you refinance you need to be sure to check your credit report from Trasunion, Experian and Equifax to make sure you

have your credit “Up and running” say Vice President Adam Naas from Joe Investment, Inc.  In a volatile interest rate market where rates are dropping

and you are locked in at a much higher rate, it can be to your advantage to pay those penalty clauses and get yourself a better interest rate.

Your best reason to refinance is to lower your interest rate and lock with fixed interest rate. With those kinds of economy and recession it is better to

refinancing with fixed interest rates that do not change until you pay off your home mortgage or until you refinancing your mortgage again. Of all the

reasons to refinance, this is one where you are going to benefit without a doubt. If you are carrying a lot of credit card debt and are finding yourself in

over your head, refinancing can get you out of the hole and in position to turn your financial situation in good shape.  Regardless of the reason that you

are looking at refinancing, you should weigh all the pros and cons carefully. Always check your credit report before refinancing so it will save you

thousands of dollars by improving your credit score and your credit report.

What is closing cost?

When you apply for a mortgage a lender is charging you interest rates for lending you money. Lenders also charge for closing cost for origination of your

new home loan. There are many associate cost relating to your home loan closing.  You should be aware where those costs is coming from and how to

save on them. Some of closing cost may be related to your loan application, while other fees are related to the house itself. You have a option to

borrow money from lender to cover your closing cost but you should be aware of those expenses and interest rates relating to it. Lenders cost to

borrow money for closing is between 3 % and 6 % t of the amount being borrowed and is also depend on your credit score and credit report.  The

difference in percentage is because different states require different taxes and fees to be included, it is impossible to come up with a generalization that

applies to loans nationwide.  

What typical closing cost include?

Typical closing costs include loan application fees and credit report from Trasunion, Equifax and Experian because when you taking a home loan banker

often check a credit report from all of those 3 agencies in order to find your average credit score. Closing cost also cover for title search , insurance fees,

property appraisal, lender’s attorney fees, inspection, boundary survey , recording fees, transfer taxes, buyer’s attorney, document stamps, points and

origination fees ( if you have a great credit score , more than 750 fico, you should discuss with your banker to remove   points from your mortgage

loan). Escrow accounts are often required for many loans for homeowners insurance, real estate taxes, and homeowners associations and require cash

deposits at closing but you may request from bank to borrow money for closing.

 After your initial meeting with a mortgage professional, you should receive a Good Faith Estimate (GFE) that shows all of the closing costs associated

with your mortgage application. If a mortgage officer don’t want to provide you with this document just ask for those document. This estimate is

required by The Real Estate Settlement Procedures Act and must be given to you within 3 days of applying for the loan but mostly bank officer will give

your right away when you receiving your pre-approval notice for a loan.

You may be able to negotiate some of the fees included in your closing costs, before you even try to negotiate with a banker, you should check your

 credit score from all tree credit report agency Trans union, Experian and Equifax so you will know for how much you qualifying for and what interest

rates you may receive. Things like credit reports typically cost the same with every mortgage program. However, if you see that your preferred lender

seems is offering a great deal but is over-charging on closing costs, point out the discrepancies and ask them to lower certain charges. Keep in mind,

most third party fees have been previously negotiated between the mortgage company and the third party, and may not be able to be reduced. Also,

watch out for “junk fees” that are included with most mortgage programs. Once you identify a junk fee, try to negotiate it down or eliminate it entirely

before accepting the loan.

 

While most people would like to have a house, young singles and couples often find it impossible to scratch together enough cash to make the purchase.

Even established people, sometimes discover that the down payment for their dream house is just too big to handle. There are many venue and strategies

that allow disadvantaged buyers to split the cost of a house by sharing the wealth. People may join together open trust account to funds money.  “We can

do more when we join with other people’s money” say Brian Collins, CPA investor in Washington, DC . Using a form of co-ownership know as equity-sharing

at least two people or entities can own one piece of real estate or buy a multifamily house and share space.

How Equity Sharing Work?

In traditional equity share arrangement, one party occupies the property and pays for all of the expenses such as mortgage, taxes, insurance premium etc.,

while Investor supply all or some portion of upfront cash in order to gain share in those home.  Buyer  would like to have a piece of real estate but can’t

afford to pay for down payment were Investor may  looking to own a piece a percentage  of Real Estate without actually paying for mortgage, taxes,

Insurance premium or have any legal obligation relating to those particular real estate. By sharing equity , you are co-owner of a real-estate , or tenants-

in-common, equity sharing allows two or more parties to share title to a property based on detailed written contract agreement that need to be signed by

both parties with a power of attorney signature.

Credit cards have become a necessary evil in today’s fast modern society. Life style has changed, people now make instant decisions and want to see quick implementation. For all this purpose, credit card has become essential. Financial transactions are done at lightning speed and this speed is the reason to many a flourishing business.

With so much of importance attached to credit cards, competition in the credit market has also increased tremendously. Offers, schemes, discounts, rewards, redeems and what not can you avail with credit cards these days. On an average, a study, says that an American family has almost 10 to 12 credit cards. Now if you have so many credit cards, you must know what a bad credit card is? This will help to differentiate with the good ones.

What makes a credit card bad? There are some points that are highlighted –

· Grace period is an important deciding factor for credit cards. A credit card with no or less than 6 months grace period is appalling in today’s competitive world. These days most of the credit card companies are giving a minimum of 6 to 12 months grace period. And if you have a credit card that charges interest from the day of purchase itself without giving any grace period then you must throw it away immediately. Why unnecessarily waste money, when you can comfortably pack back over an extended grace period.

· Some credit card companies try to exploit the ignorant user by charging hefty amount as over-limit fees, percentage amount on maximum credit limit, late payment charges. All these are just excuses to extract some money out of the user. Do away with such credit cards. They are genuinely bad credit cards. You must not such unwanted amount as this or that fees. Standard and reputed credit card issuing banks/ companies do not charge such unrequited amount. Such measures are usually taken by local credit card issuing companies. Beware of them!

· High interest rates are obviously a strict no-no for the credit cards. It is a straight relation, without much confusion, credit card that charges high interest rates is a bad credit card. Throw it away. Market is full of offers of credit cards with affordable and reasonable interest charges.

· Credit card that does not come with gift certificates, vouchers and cash pay back offers is surely a bad credit card in today’s economic market. Consumer of today is spoilt for choices. So as a consumer, enjoy the competition and turn it to your favor for you are the king and credit card companies should please you with good number of offers!

These are some of the major aspects that make a credit card bad and unattractive.