Tips on Managing Your Debt Load

Credit-card debt isn't all bad. A little can get you out of a tight financial jam -- but a lot can lead to its own money emergency.

How can you tell if your debt load is nearing a critical level? Look for these symptoms:

1.You're unable to make the minimum payments on your credit cards

2.You borrow from one card to pay another

3.You're frequently charged fees for late payments or going over your credit limit

4.You use plastic out of necessity rather than convenience

5.You forgo contributions to savings and retirement plans because of your debt

6.You devote more than 20% of your take-home pay to making payments on credit cards and loans other than your mortgage.visit:-http://finance.yahoo.com/banking-budgeting/article/103652/Don%27t-Let-Debt-Get-You-Down;_ylt=AsUTBBilGUZK8mY5cfpr2HNfrdIF

Credit Deals for the Creditworthy

The credit crisis has given Scott Briggs and his wife, Catherine, unusual leverage in their search for a new home. In October, to get the best deal on a 30-year fixed mortgage for a home in Austin, Tex., the couple persuaded the seller to agree to an unusual contingency clause in the contract of sale that let them back out, without penalty, if they couldn't get a mortgage carrying a 5.875% interest rate and no more than one point in closing fees.

The couple -- he is a partner at Ascend, a jet hangar manufacturer, and she is a pharmaceutical sales rep -- have near-perfect credit scores. Adding to their bargaining power, they plan to put 20% down on the four-bedroom, two-bath home in downtown Austin that they covet. They're also pitting two lenders against each other. "With rates bouncing around, we want to get the lowest rate possible," Scott says. Keith T. Gumbinger, vice-president of HSH, a mortgage market analyst, says that's smart: "There are a lot of hungry mortgage originators, so great credit-quality borrowers are in the driver's seat."read more http://finance.yahoo.com/banking-budgeting/article/106027/Credit-Deals-for-the-Creditworthy;_ylt=Aoe1IF0s9EHeqUvHuuAjAVgJo9IF

A new cop for global finance

If an ounce of optimism exists in the market meltdown, it is this: Europe and the US have agreed to make the world safe again for capitalism by rethinking global rules for the financial system. One thing is for sure: The old rules, largely set in 1944, are as good as a rusted-out speed-limit sign.

Too much of the new world of international finance, such as hedge funds, derivatives, and mortgage securities, now operates in the shadows. US credit-rating agencies badly underestimated the real risks of subprime mortgages. Big banks have become too big to fail. And most of all, when Wall Street crumbles, the rocks ricochet from Shanghai to Stockholm.

Reining in the excesses of this complex, 24/7 business won't be easy – even within each country. But hope for reform is strong after recent joint action by Europe and the US to prop up banks and grease money flows. Read more..http://www.csmonitor.com/2008/1017/p08s01-comv.html

Amendment 47 are fined for finance violation

The Colorado Right to Work Committee violated the state's campaign-finance law in failing to disclose all of the contributions made to its effort to put Amendment 47 on the November ballot, according to a court ruling.

Administrative Law Judge Michelle Norcross ruled that the committee be fined almost $10,000.

The finance complaint was filed last spring by AFL-CIO executive director Mike Cerbo and the union coalition in an effort to force disclosure of the initial financial backers of the measure.

Amendment 47 would do away with compulsory union fees for workers covered by collective bargaining contracts. Current state law requires that at least 75 percent of workers vote to establish such "all-union" agreements.
Wants to know more visit http://www.rockymountainnews.com/news/2008/oct/17/creators-of-amendment-47-fined-for-finance/?partner=yahoo_headlines

Mortgage Facts – Something You Should Know

Many people do not have a clear idea what a mortgage loan is and when they avail a mortgage loan without knowing the facts related to it, they face a number of problems. So it is important to have a transparent idea about a mortgage loan.

A mortgage loan is a particular form of loan, which is availed by pledging a real property accompanied by the usage of a mortgage (which is a legal instrument). Nevertheless, the word mortgage in its day to day use is frequently referred to denote mortgage loans.

In the United States and other developed countries of the world, a mortgage loan is utilized for purchasing homes or residential properties. However, mortgage loans are also available for buying cars, as well.

Mortgage loans are offered by different entities, for example banks and non-banking financial institutions. The mortgage loan borrowers can avail the loan either directly or indirectly from those entities. Sometimes, intermediaries like mortgage brokers are involved in the mortgage lending process. They help the borrowers find the appropriate form of mortgage for them.

Features or characteristics of mortgage loans:

The features or characteristics of a mortgage loan can be enumerated as the following:

• The maturity or term period (tenure) of the mortgage loan
• The size or amount of the loan
• The rate of interest applicable for the mortgage loan
• The repayment method of the mortgage loan


The basic concept behind a mortgage loan:

The basic concept behind a mortgage loan is that a homebuyer who is interested in availing a mortgage loan has to keep a security or pledge against that particular loan. In most of the cases, the house that he or she is going to purchase is kept as pledge or security. This is also termed as collateral. Similar to other types of loans, mortgage loans carry a stipulated rate of interest and have a particular tenure. The tenure can range anywhere from 10 to 30 years. In case the mortgage loan borrower becomes unable to repay the loan, the mortgage lender has the authority to take hold of the property, sell it off and realize the loan amount. Mortgage loans are normally designed as long term secured loans. Mortgage loan installment payments have similarities with annuity payments and the calculation is done as per the time value of money formulae. The features or characteristics of a mortgage loan are dependent on a number of factors, for example, the tenure of the mortgage loan, the rate of interest, the amount of installment, the number of installments and prepayment etc.

In the United States, the amount of mortgage loan receivable by a borrower is decided by his or her credit score or credit history. If the credit score is high, the loan amount may also be high and the interest rate affordable. If the credit score is low, then the loan amount may be limited and the interest rate high.

The fundamental constituents of a mortgage loan:

The fundamental constituents of a mortgage loan are the following:

The lender: Usually, banks and other financial institutions
The borrower: The person who is receiving the loan
Mortgage: The security or pledge
Interest: This is a cost charged for utilizing the money of the mortgage lender
Repossession or Foreclosure: This is related to the probability of repossession or foreclosure or taking hold of the property by the lender
The property: The house or residence
The principal amount: The actual amount of mortgage loan

Types of mortgage loans:

Mortgage loans can be availed in different forms and some of them are as follows:

• Fixed rate mortgage (Also known as FRM)
• Adjustable rate mortgage (Also termed as ARM, variable rate mortgage or floating rate mortgage)
• Blanket loan
• Commercial mortgage
• Balloon mortgage
• Home equity line of credit (HELIC)
• Interest only mortgage
• Repayment mortgage
• Jumbo mortgage
• Reverse mortgage

Repayment methods of mortgage loan:

The repayment methods of mortgage loans can be enumerated as the following:

Interest only repayment
Capital and interest
Interest and partial capital
No capital or interest
Foreclosure and non-recourse lending


Important facts about a mortgage loan:
Before seeking a mortgage loan, the prospective mortgage borrower should remember a few facts. He or she should check the credibility of the mortgage borrower. The terms and conditions of the mortgage loan should also be taken into consideration. Mortgage loans should be taken from reputed sources only. All the information regarding the reputed mortgage lenders are available over the Internet. The homebuyer should go through those information minutely. If all these are followed, the mortgage process would be hassle-free and convenient for the borrower.