How To Slash Taxes Permanently and Fix the Fatal Flaw In the Constitution

The Constitution established the principle that our Federal government only has those powers granted to it by the sovereign people. The Bill of Rights forbade government from making any laws that violated our fundamental political rights such as freedom of speech and the press. It established the principle that we have inviolate individual and political rights that are outside government’s control.

But the Constitution had a fatal flaw — it did not put economic liberty outside government’s control. It gave the federal government the power to coin money, “promote the general welfare,” and “regulate commerce” among the states. Our Founding Fathers could not foresee how these powers would be turned against us. They could not foresee how today’s liberals, Democrats, and Republicans would use these economic powers to create our devouring socialist Welfare/Entitlement State.

Most Americans condemn Communist governments for violating their citizen-slaves’ political rights and liberty. Censorship, secret police, a one-party system, rigged courts, and suppression of free speech and a free press are the standard vicious and painfully obvious characteristics of such regimes.

In Communist countries, the close connection between political liberty and property rights is also obvious. In Cuba and North Korea, the economy and political power are one and the same. The Communist party makes most economic decisions for millions of helpless citizen-slaves. It decides where a person will work, what he can buy, where he can live, how much he’ll be paid, and thousands of other economic decisions that Americans make for themselves and take for granted (although Congress is now increasingly strangling our economic freedom with suffocating regulations).

A Communist government therefore has the power of life or death over every man, woman, and child in the country. It can fire someone from his job and not let him work anywhere else. It can lower a worker’s wages or cut off a retiree’s pension. It can dictate who goes to college and who becomes a laborer. The government can take someone out of the factory and force him to work in the fields, as they did in Cuba, Cambodia, and the Soviet Union.

Through this awesome economic power, a Communist government can sentence a man and his family to death by slow starvation without bothering with legal proceedings. Without property rights and economic liberty, political rights are meaningless.
Most people who are forced to choose between food and free speech will choose food. The communist Cuban government has a constitution that supposedly guarantees political rights, but this constitution is not worth the paper it’s written on. Cubans are already slaves through their government’s total economic power over them.

In welfare/entitlement states around the world, including ours, the same connection exists between political rights and economic liberty. But in a welfare/entitlement state, people still have some political rights and a semi-free economy. As a result, in America we find it harder to believe that government threatens our political rights when it violates our property rights. In a welfare/entitlement state, it’s harder to see the link between political rights and economic liberty.

Welfare/entitlement states have economic powers that are similar to those in Communist countries. France, Germany, and other European welfare/entitlement states regulate wages, heath care, employment policies, product standards, safety standards, transportation, the environment, and most other areas of it’s citizens’ lives. They also loot their citizen’s earnings through taxes to pay for all the welfare and entitlement programs.

A welfare/entitlement state differs from a Communist government only by degree–it’s just a milder version of the same poison. Both have the same goals–to allegedly “help” people in “need,” and both use the same means–compulsion. The difference between the two is how much force the government uses, and whether force is imposed by the communist party or by majority rule.

To confirm this, try not paying your income taxes or refuse to obey some regulation and see what happens. If you resist the tax collectors, you’ll end up dead or in jail. When government withholds income taxes from your paycheck to pay for welfare, subsidy, or entitlement programs, it violates your property rights and economic liberty. Income taxes are simply legalized looting by our own government.

It doesn’t matter that a Communist government owns all property while a “democratic” welfare/entitlement state “allows” private property. What’s important is not who owns property, but who controls it. When taxes confiscate up to 50 percent of your income, as they now do in America, you own only 50 percent of what you earn. When government bureaucrats can control your property with strangling regulations, your ownership is meaningless–your hard-earned paycheck or profits are up for grabs by Federal and state tax looter-collectors.

We all spend what we earn on ourselves and our families. Who in his right mind would give away up to 50 percent of his hard-earned money to pay for other peoples’ education, food stamps, subsidized rents, farm subsidies, health insurance, savings and loan bailouts, or retirement benefits? No one would, and that’s why force is necessary through compulsory income taxes.

Every penny that an alleged “democratic” welfare/entitlement state takes from you by majority-rule force represents a theft of your most precious possession–time. It represents a theft of part of your life, the part you spent earning that money. Welfare/entitlement-state liberals, democrats, and too many Republicans assume that you don’t own the money you earn, and therefore that you don’t own your life. They assume that your duty in life is to work for the benefit of others, not for yourself or your family. They assume that you are your brother’s keeper, whether you like it or not. When welfare/entitlement state bureaucrats loot over 40 percent of your income with taxes, it means you’re a slave working for others for almost five months of every year of your life.

To stop this injustice, once and for all, we have to forbid government from violating our economic liberty. The way to do this is to build a thick wall between government and the economy with a constitutional amendment, similar to the First Amendment that separates Church and State. We desperately need a constitutional amendment that separates the Economy from the State, and creates an inviolable protection for our property rights.

Our religious beliefs are off-limits to government meddlers because of the First Amendment. Similarly, under this new “economic rights” amendment to the Constitution, our paychecks, business profits, and anything else we earn would be ours by right and off-limits to government tax collectors.

Under such a Constitutional amendment, Congress and state governments would be forbidden from raising or using any tax money to give any economic handout or subsidy to any group whatsoever. Under this Amendment, Congress and state governments would be forbidden from giving any welfare, subsidies, entitlement payments, tax breaks, or any other form of money transfer to farmers, welfare mothers, college students, illegal aliens, public schools, big corporations, or any other group that now sticks its hand out for unearned benefits from our politicians. Congress and state legislators would be out of the Santa Claus business with other people’s money.

With such an Amendment in place, special-interest lobbyists would disappear. Just as the Supreme Court overturns any law that violates the wall between Church and State today, it would slap down any welfare, subsidy, or “entitlement” program to any special-interest group or corporation whatsoever, including middle-class programs like Medicare.

Lobbyists would then quickly realize the futility of wasting their time trying to buy or bribe a Congressman or state legislator to pass a law that gave his group a special handout or subsidy paid for by the rest of us. Handouts and organized government looting would be outlawed by this Amendment. Social Security (a combination “insurance” and partial-welfare program), to which millions of hard-working Americans made contributions during their lifetime, would be privatized and phased out, while protecting existing retirees’ current benefits.

When the organized looting of the Welfare/Entitlement state is outlawed by this Constitutional amendment, we could then eliminate the income tax, permanently. The vast majority of money that Congress and state governments spend today is for welfare, subsidy, or entitlement programs such as Medicare, Medicaid, farm subsidies, welfare programs, “public” education, foreign aid, corporate subsidies, ad nauseam. Once we eliminated these looting programs or privatized them, we could slash taxes to the bone. Our trillion-dollar budgets with 400 billion dollar deficits could be reduced down to pennies on the dollar, with no more deficits. Slash government’s spending orgy for the welfare/entitlement state, and we can slash taxes and explode our productivity and standard of living for rich and poor alike.

So what we need to end the legalized looting of the welfare/entitlement state that is bankrupting our nation is a new Constitutional amendment that separates Economy and State, similar to the separation of Church and State. Then we can all once again keep what we earn. Government looters could not steal our hard-earned money in the name of “helping” others, by turning compassion into compulsion.

How To Save Thousands By Paying Off Your Mortgage Earlly

Save Thousands With New Way To Pay Off Your Mortgage!

You Can’t WIN! At least by doing it the conventional way!

FACT: Unlike about any other debt or “loan”, the typical mortgage (probably yours) is front ended load to apply most of your payment to the interest for at least 1/3rd of the loan life. On a typical 30 year mortgage, 90% or so of your payments go to interest for the first 7 years!

FACT: The “6%” or quoted mortgage interest rate only becomes effective at that rate after you complete the full contracted (15 or 30 year) period!

FACT: On your 30 year conventional mortgage, not even half of your payment goes to reduce principal until after the 7th year!

FACT: Over 70% of Americans move or refinance before the end of a seven year occupancy and paying.

FACT: On that move or refinance; most Americans take some equity out and start their clock all over again!

FACT: If you had money available to make extra principal payments, you could accelerate the time where your money starts to go toward principal and you could effectively knock years of “the back end” of the mortgage.

FACT: IF you had the money, you could accelerate the mortgage pay down and save substantially.

FACT: Most Americans DON’T have the extra money to make substantial additional payments.

FACT: Under The Standard System You Can’t Win

How then do you accelerate the payoff of your mortgage?

Under the standard system, we said you can make additional payments to principal.. but most people don’t have enough to do that on a regular basis. You can refinance possibly to a lower interest rate, but when you examine this option, you’ll often find that the costs associated with refinancing won’t be recovered for 3, 4, or even 5 years. And lastly, you could go to a bi weekly payment plan which is essence is a forced way to make one extra payment a year, and on average will accelerate the pay down of a 30 year mortgage by seven years.

Even with that, it’s not a win-win situation because you make two payments a month on average, but the bank sits on your first payment until the end of the 28th day, using your money, but not paying you any interest on it and ONLY crediting you with the payment at the end of the month.

Is there an answer to the problem? Surprisingly, there is! But it takes a little knowledge (or the use of a tool that has “knowledge” built into it and can do some complex calculations.

Why complex calculations? Because we’re going to follow some advice that’s been around for a very long time in successful financial transactions! What is the secret?

USE OTHER PEOPLE’S MONEY!.

In this case, the “other people” is the bank!

You see, that very same bank has a tool….. well, maybe your exact bank doesn’t have one… but if not, this tool is available to most people at SOME bank, and it’s an open ended loan account, generally referred to as a Home Equity Line of Credit.

You need to do some independent reading because the suggested length of an article like this does not allow for a full discussion of that financial instrument, but suffice it to say, in this type of a loan interest is treated much differently. Your interest is calculated only on the average daily balance, and that balance can be changed nearly daily. In other words, if you make a payment to your principal on the 5th, you get credit for the payment on the 5th.. not at the end of the month.

We want to keep the balance on this account as low as possible, and we can do that by putting money into it that is otherwise sitting around in zero or very low interest bearing accounts. But we need to know when to put money in and take it out.

Your HELOC will act like a conventional checking and banking account in nearly all respects, except it can never have a POSITIVE balance in it. If you have obtained a credit line of $10,000 you can withdraw up to $10,000 from it, but you never can put money in that would make it “store” money.

So let’s say you tap this account to make a substantial principal only payment on your primary mortgage. You’ve used “other peoples” money. For example purposes, you made a payment of 5000. Now you also have some household living expenses that equal 4000 and you wrote this out of the HELOC. Now you are “in hoc” to your heloc by 9000. You and your significant other (if you have one) or you alone… it doesn’t matter… have a monthly income (at least this month) of $6000. So you put your paycheck into your HELOC, and at the end of the month, you really only have a balance of $3000.. and that’s what you pay interest on. But you’ve killed the interest on your first of $5000. Because the first is front end loaded, depending on the year, that was really having an effective interest rate maybe of 50%.

Next month you wrote out your living expenses of $4000 from the HELOC, and as you had a negative balance in it of 3000, you owe your HELOC $y 7000. Payday again! Same $$6000, so you put it in. Balance becomes just $$1000.

Month 3… same schedule for the old budget. Monthly expenses were the same $4000, and add that to the bal of $1000 you owed starting.. so you have a 5000 balance you owe the bank. Payday coming up and you know the vital fact we just stated: You can’t have a positive balance in your HELOC! If you tried to put that full $6000 paycheck in, it would not take it.

So at some time before payday, you need to transfer some funds out of the HELOC to pay down some more principal.

Ah Ha.. the magic questions: When, and how much.

Take a guess and pay too much from your HELOC and your “spread” of interest advantage disappears. Why not make a massive payment of $8000.. after all , you have a credit line of $10,000. And when to make it.

The answer is that if you pay too much relative to your repayment schedule, the interest of that HELOC will cancel any advantages. Ditto on the timing.

While your regular mortgage payment has to be made by a certain date, or you get late charges, remember that you are NOT credited with payments until the end of the amortized schedule.. usually monthly. So you don’t want to put money in too soon and let the bank sit on it until they decide to credit you!

IF you had the time and patience, you could figure this all out to the penny and to the date and hour.

The facts of life are that most of us don’t have these skills or the discipline, so we need some one, or some things, to give us that guidance.

This is just math, not magic. Applied “numbers crunching” and what does that better than a computer!

The GOOD NEWS: There are commercial software programs in the market today that will do this for you. Some are better than others, but we suggest you become familiar with what is available and begin to use it as soon as possible.

Will this work for everyone? No. The software will, but you need an open ended loan account, and the most common IS your Alternate Home Equity Line of Credit. Looks like a second mortgage, but is not in that it is truly open ended. By definition, to get one, you must have SOME equity in your home, or a home if not your principal residence. You need to have an income where your income exceeds your monthly expenses. Doesn’t nave to be by much.. as little as $$50,000 qualifies most people. And you should have a respectable credit score or rating.

In late fall of 2007 we all read about the mess the mortgage lenders are in, and in an effort to cleans themselves up, they have tightened loan standards. Even if you meet the existing criteria above, you own bank may not offer this tool to you. so shop around.

You may be able to substitute a personal line of credit. Again, shop around.

As to the commercial software.. ask if it is dynamic. Does it adjust for your changing expenses and possibly income if you are self employed or paid on commission, so that each day and month, your calculations are adjusted to optimize your prompts for payment. Is it totally confidential and NOT move your money, but gives you full and complete control. If you change residences, can you transfer the account to a new home or mortgage? How about tech support.. is it available e 24/7? For your lifetime? From someone in the USA that you can understand? Is there a written guarantee of satisfaction? Will it reside on YOUR PC or on a mainframe? How often is it backed up? Do you have 24/7 access? Will it provide ancillary financial advice on decisions such as true costs of major purchases?

This is only an entry level article, but it demonstrates a proven concept, in use for many years in places like Australia and the Far east; It demonstrates how you can take advantage of the spreads between when interest is applied and calculated and when principal is applied, and how with the right tools and calculations, you can truly use other peoples money to accelerate your mortgage.

Typical results cut 1/3 to 1/2 off a standard mortgage.. and you don’t have to refinance or make any alterations.

We wish you well and much financial success.

Joe Leech makes it easy to follow the instructions in the article through resources available at his site at [http://www.mortgage-b-gone.com] or through his ebook

 

How To Save Thousands By Paying Off Your Mortgage Earlly

Save Thousands With New Way To Pay Off Your Mortgage!

You Can’t WIN! At least by doing it the conventional way!

FACT: Unlike about any other debt or “loan”, the typical mortgage (probably yours) is front ended load to apply most of your payment to the interest for at least 1/3rd of the loan life. On a typical 30 year mortgage, 90% or so of your payments go to interest for the first 7 years!

FACT: The “6%” or quoted mortgage interest rate only becomes effective at that rate after you complete the full contracted (15 or 30 year) period!

FACT: On your 30 year conventional mortgage, not even half of your payment goes to reduce principal until after the 7th year!

FACT: Over 70% of Americans move or refinance before the end of a seven year occupancy and paying.

FACT: On that move or refinance; most Americans take some equity out and start their clock all over again!

FACT: If you had money available to make extra principal payments, you could accelerate the time where your money starts to go toward principal and you could effectively knock years of “the back end” of the mortgage.

FACT: IF you had the money, you could accelerate the mortgage pay down and save substantially.

FACT: Most Americans DON’T have the extra money to make substantial additional payments.

FACT: Under The Standard System You Can’t Win

How then do you accelerate the payoff of your mortgage?

Under the standard system, we said you can make additional payments to principal.. but most people don’t have enough to do that on a regular basis. You can refinance possibly to a lower interest rate, but when you examine this option, you’ll often find that the costs associated with refinancing won’t be recovered for 3, 4, or even 5 years. And lastly, you could go to a bi weekly payment plan which is essence is a forced way to make one extra payment a year, and on average will accelerate the pay down of a 30 year mortgage by seven years.

Even with that, it’s not a win-win situation because you make two payments a month on average, but the bank sits on your first payment until the end of the 28th day, using your money, but not paying you any interest on it and ONLY crediting you with the payment at the end of the month.

Is there an answer to the problem? Surprisingly, there is! But it takes a little knowledge (or the use of a tool that has “knowledge” built into it and can do some complex calculations.

Why complex calculations? Because we’re going to follow some advice that’s been around for a very long time in successful financial transactions! What is the secret?

USE OTHER PEOPLE’S MONEY!.

In this case, the “other people” is the bank!

You see, that very same bank has a tool….. well, maybe your exact bank doesn’t have one… but if not, this tool is available to most people at SOME bank, and it’s an open ended loan account, generally referred to as a Home Equity Line of Credit.

You need to do some independent reading because the suggested length of an article like this does not allow for a full discussion of that financial instrument, but suffice it to say, in this type of a loan interest is treated much differently. Your interest is calculated only on the average daily balance, and that balance can be changed nearly daily. In other words, if you make a payment to your principal on the 5th, you get credit for the payment on the 5th.. not at the end of the month.

We want to keep the balance on this account as low as possible, and we can do that by putting money into it that is otherwise sitting around in zero or very low interest bearing accounts. But we need to know when to put money in and take it out.

Your HELOC will act like a conventional checking and banking account in nearly all respects, except it can never have a POSITIVE balance in it. If you have obtained a credit line of $10,000 you can withdraw up to $10,000 from it, but you never can put money in that would make it “store” money.

So let’s say you tap this account to make a substantial principal only payment on your primary mortgage. You’ve used “other peoples” money. For example purposes, you made a payment of 5000. Now you also have some household living expenses that equal 4000 and you wrote this out of the HELOC. Now you are “in hoc” to your heloc by 9000. You and your significant other (if you have one) or you alone… it doesn’t matter… have a monthly income (at least this month) of $6000. So you put your paycheck into your HELOC, and at the end of the month, you really only have a balance of $3000.. and that’s what you pay interest on. But you’ve killed the interest on your first of $5000. Because the first is front end loaded, depending on the year, that was really having an effective interest rate maybe of 50%.

Next month you wrote out your living expenses of $4000 from the HELOC, and as you had a negative balance in it of 3000, you owe your HELOC $y 7000. Payday again! Same $$6000, so you put it in. Balance becomes just $$1000.

Month 3… same schedule for the old budget. Monthly expenses were the same $4000, and add that to the bal of $1000 you owed starting.. so you have a 5000 balance you owe the bank. Payday coming up and you know the vital fact we just stated: You can’t have a positive balance in your HELOC! If you tried to put that full $6000 paycheck in, it would not take it.

So at some time before payday, you need to transfer some funds out of the HELOC to pay down some more principal.

Ah Ha.. the magic questions: When, and how much.

Take a guess and pay too much from your HELOC and your “spread” of interest advantage disappears. Why not make a massive payment of $8000.. after all , you have a credit line of $10,000. And when to make it.

The answer is that if you pay too much relative to your repayment schedule, the interest of that HELOC will cancel any advantages. Ditto on the timing.

While your regular mortgage payment has to be made by a certain date, or you get late charges, remember that you are NOT credited with payments until the end of the amortized schedule.. usually monthly. So you don’t want to put money in too soon and let the bank sit on it until they decide to credit you!

IF you had the time and patience, you could figure this all out to the penny and to the date and hour.

The facts of life are that most of us don’t have these skills or the discipline, so we need some one, or some things, to give us that guidance.

This is just math, not magic. Applied “numbers crunching” and what does that better than a computer!

The GOOD NEWS: There are commercial software programs in the market today that will do this for you. Some are better than others, but we suggest you become familiar with what is available and begin to use it as soon as possible.

Will this work for everyone? No. The software will, but you need an open ended loan account, and the most common IS your Alternate Home Equity Line of Credit. Looks like a second mortgage, but is not in that it is truly open ended. By definition, to get one, you must have SOME equity in your home, or a home if not your principal residence. You need to have an income where your income exceeds your monthly expenses. Doesn’t nave to be by much.. as little as $$50,000 qualifies most people. And you should have a respectable credit score or rating.

In late fall of 2007 we all read about the mess the mortgage lenders are in, and in an effort to cleans themselves up, they have tightened loan standards. Even if you meet the existing criteria above, you own bank may not offer this tool to you. so shop around.

You may be able to substitute a personal line of credit. Again, shop around.

As to the commercial software.. ask if it is dynamic. Does it adjust for your changing expenses and possibly income if you are self employed or paid on commission, so that each day and month, your calculations are adjusted to optimize your prompts for payment. Is it totally confidential and NOT move your money, but gives you full and complete control. If you change residences, can you transfer the account to a new home or mortgage? How about tech support.. is it available e 24/7? For your lifetime? From someone in the USA that you can understand? Is there a written guarantee of satisfaction? Will it reside on YOUR PC or on a mainframe? How often is it backed up? Do you have 24/7 access? Will it provide ancillary financial advice on decisions such as true costs of major purchases?

This is only an entry level article, but it demonstrates a proven concept, in use for many years in places like Australia and the Far east; It demonstrates how you can take advantage of the spreads between when interest is applied and calculated and when principal is applied, and how with the right tools and calculations, you can truly use other peoples money to accelerate your mortgage.

Typical results cut 1/3 to 1/2 off a standard mortgage.. and you don’t have to refinance or make any alterations.

We wish you well and much financial success.

Joe Leech makes it easy to follow the instructions in the article through resources available at his site at [http://www.mortgage-b-gone.com] or through his ebook

 

How To Refinance Mobile Home Loans for People With Bad Credit 5 Tips

Pride of ownership. That is the first phrase that comes to mind when most people are asked about what it feels like to own their own home. Mobile home owners are proud to have a place to call their own. It allows them to get off of the renting treadmill, while giving them the chance to build up an investment asset over time as they pay down their mortgage loan.

These days, everyone should be looking for ways to reduce their monthly expenses. When money is tight, the ability to shave even a few hundred dollars per month off of one’s expenses is seen as a welcome opportunity for mobile home owners.

A smart way to accomplish this kind of reduction in monthly expenses is through refinancing the mortgage on your mobile or modular home. Refinancing simply refers to the taking out of a new loan while paying off the existing one completely. It only makes sense to refinance if you can qualify for better loan terms that either reduce the monthly mortgage payment, reduce the total interest paid over the life of the loan, or both.

But, what if you have a bad credit score – are mobile home refinance loans still possible? The answer is yes, if you know how to go about it.

If you are wondering how to refinance mobile home loans for people with bad credit, here are 5 tips for how to get approved:

1. Get a sense for the current appraisal value of your home:

Refinancing is only possible if you owe less on your home than it is worth. Start by getting an informal (free) or formal (fee-based) estimate on the current value of your home. A Realtor friend of yours – or maybe the manager of your mobile home park – may be able to give you an informal appraisal. For a formal appraisal, contact a professional appraiser.

2. Determine exactly how much you owe on your existing mortgage, as well as what your current mortgage terms are:

Now, call or e-mail your bank – or check your most recent mortgage statement – and find out exactly how much you owe on your existing mortgage. Also, check your current mortgage’s interest rate and repayment period (e.g., 15 years, 30 years, etc.).

3. Identify at least 3-5 bad credit mobile home refinance lenders:

Next, talk with neighbors, go online and check with your current bank to identify at least 3-5 “bad credit mobile home refinance lenders.” These lenders advertise themselves openly as such. Also, you can look for “bad credit refinance lenders” who do NOT specialize in mobile homes, as well. Most of them will also refinance mobile home loans.

4. Get a baseline refinance quote:

Apply for a refinance loan with just one of the lenders. We will call this your “baseline” quote because you will use this first quote as a reference point for the rest. Since you will only have a sample size of one at this point, do not be disappointed if the first quote you get does not have the favorable loan terms you were looking for. At this point, you just need something to use for comparison purposes as you seek out more loans.

5. Establish your “number to beat” interest rate and contact the remaining lenders:

Use the interest rate offered to you via this first refinance quote as the number you will want to beat with the quotes from the remaining lenders to which you apply. Make sure to actually apply to all of the lenders you found during step #3 above: it is quite likely that the 4th or 5th one you contact will offer you the best rate of the bunch.

Consider these 5 tips as you look to refinance mobile home loans for people with bad credit.

 

How to Get the Lowest Home Improvement Loan Rate

The lowest home improvement loan rate for your home improvement project is out there waiting for you to find it. Of course, there are a number of factors that can affect whether or not you get the lowest home improvement loan rate on the money that you borrow; here are some tips on how to get that low interest rate that you want so you can make the home improvements that you need without paying a fortune for it.

Current Rates

Before trying to find the lowest home improvement loan rate, you should have a good idea of what a good loan rate is. You can check the current loan interest rates at your local bank or a preferred lender, though some rates may vary from one area to another or from one type of lender to the next.

Be sure that you check with as many different lenders as possible, and don’t forget to look at the rates available from online lending companies as well. Often, these companies will have special deals that may help you qualify for a lower rate that you might not be able to get otherwise. The more information you have, the better deal you’ll find.

Equity

Your lowest home improvement loan rate will be affected by the value of the equity of the house or other real estate that you own. The more equity you have, then the more you can borrow without having to pay a higher interest rate. If you own your home, you’ll be much more likely get the lowest home improvement loan rate your lender offers; this doesn’t mean that you can’t get a good rate without owning your house outright, however.

If you don’t own your home yet, be sure you have a good amount of equity built up. Since equity doesn’t just affect your interest rate but also can determine the maximum amount that you qualify for, it’s important to make sure that you get the most out of the equity that you have.

Other Factors

Many other aspects also help you get the lowest home improvement loan interest rate for your money. A lender may consider any or all of the following items when determining your interest rate:

o Credit history – a bad credit history can raise rates, while a good credit history helps lower them.

o Amount requested – larger loans have higher rates

o Collateral – you may be able to include additional collateral to help lower your interest rates even further.

o Payback length of time – a longer payback period means lower rates, but be sure that you don’t end up paying more in the long run.

o Current salary – an good salary gives the lender the option to increase the amount loaned and can help you pay it off sooner.

o Age of the applicant – younger applicants may qualify for a longer payback period at lower interest rates.
Research your lenders and discuss the process they use to determine your loan rate. Get plenty of estimates and put work into making yourself a desirable applicant, and you’ll be sure to get the lowest home improvement loan interest rate available.

Bill Stone writes for Direct Online Loans who help homeowners find the best available loans via the www.directonlineloans.co.uk website.

 

 

How to Get the Best Deal With Buying a Used Car

Tips on How to Buy a Used Car

Shopping is fun! For some of us, shopping is our favorite past-time. So why is it that so many of us dread the thought of shopping for a car? Our vehicle(s) is one of the most important investments we’ll make in life. Our lifestyles are so dependent on reliable transportation. When I hear stories about a successful, accomplished woman being greeting by a sales rep in a dealership with the comment, “this must be daddy’s little girl…” I feel personally embarrassed; embarrassed for my industry and for all sales professionals. But, the sad fact remains that we still operate in an automotive industry predominantly male, and what makes this sad is that many of these men lack manners. I also think that many male consumers could share their own bad vehicle shopping experiences that I would find equally embarrassing. But, I remain optimistic. Through persistence and innovative sales training, we will push through these awkward barriers. The great news is that consumers have the power to change industries. Women make more than 90% of the buying decisions. We have a voice and car dealers have no choice but to hear us.

If you think about what makes shopping fun, you might think of the pleasure in perusing the selection. Or you think about how good your new purchase will make you feel. When you know what you want and you’re confident that you’ll find something that you like, the search is fun. With this in mind, shopping for a car can be fun and I’m going to help make it easy for you. First, you’ll need to make a few important decisions in order for your vehicle search to go in the right direction. What is your budget and what are the features that you must have in your vehicle? I recommend that you start your search on-line using Google, auto catch or auto trader. These search engines will lead you to a wide variety of dealer inventories, and they allow you to search based on specifics like price and features.

Tip #1: If possible, choose something no more than 5 years old. You’ll get better financing options. Most banks won’t finance a vehicle older than this, and the interest rates on loans or leases will increase with the vehicle’s age. The best interest rates offered for used vehicles will be on those less than 3 years old, and these will probably have the balance of factory warranty, an added bonus.

Tip #2: It’s much safer to buy from a dealer. They are legally responsible in many ways that private sellers could never be held accountable. Not to mention that many private sellers are “curbsiders”, people who frequently buy and re-sell used vehicles but are too cheap to operate legitimately with a dealer’s license and don’t want to be regulated. You can visit OMVIC’s website for details on the MVDA (Motor Vehicle Dealers Act) which is the legislation that car dealers are required to comply with to operate. Ontario is a full-disclosure province which means that dealers must provide consumers with lots of information on used vehicle history. If you’re financing your purchase, it’s wise to have the dealer arrange your financing because they have access to multiple lenders who specialize in auto loans and can get you better rates. Franchise car dealers (those who also sell new vehicles) usually have a larger network of lenders that are willing to work with them, and they can offer more solutions for difficult credit situations. Deal exclusively with dealers that are members of multiple associations, especially the UCDA (Used Car Dealers Association). These associations offer great resources which help dealers better serve their customers.

Tip #3: Ask the dealer what they do to recondition their used vehicles. Look for dealers with standard operating procedures which their staff must follow, such as 20 point inspections in addition to safety certifications. Companies with structured policies have better quality service and their customers come first. Dealers with on-site service garages usually recondition more thoroughly due to ease of access to service equipment and technicians. Ask to see the service records and ask for an explanation of what their multi-point inspection entails. Your common sense will lead you in the right direction with this information. Avoid vehicles that have had extensive body repairs, or wheel (brakes, tires, etc) & suspension repairs. These are indications of excessive wear and tear early in the vehicle’s life.

Tip #4: Ask the dealer to review with you the vehicle’s history report. Do not buy a vehicle without a history report. There are many brands of history reports. Car Proof and UCDA reports are the best and most reliable. These reports will tell you if the vehicle has ever been involved in an accident (which is not always a deal breaker), if the odometer has ever been replaced, if there are any brands against the vehicle such as rebuilt or salvage (these are definitely deal breakers, run away!), if the vehicle has ever been registered out of the province or the country (which would mean you’re missing info on this vehicle’s history), and if the factory warranty has been cancelled (not a good sign). The best advice here is to look for vehicles that have very short history reports. You want a used car with no stories, and no skeletons in the closet. A clean history report usually means you’re looking at a healthy car.

Tip #5: Ask the dealer where they bought the vehicle. If it was traded-in by another customer, ask to see the vehicle appraisal. The appraisal provides lots of info and will give you a sense for how the previous owner cared for the vehicle. If the vehicle was purchased at an auction, you need to know who the seller was at the auction. For example, Ford Credit uses auctions to dispose of vehicles off-lease. Off-lease vehicles are great because leasing companies have high standards for reconditioning. Be wary of bank repossessions. People that are upset about losing their vehicle can be abusive to their car. Sellers such as rental companies or other car dealers can be OK as long as you’ve followed the tips above. Vehicles with higher mileage can also be OK as long as you’ve followed the steps above. However, if you like to change vehicles every few years, higher mileage will reduce resale value. Average mileage is 20-25,000 kms per year. Auctions will perform mechanical inspections on vehicles and you should ask the dealer if they paid the auction for this service.

Tip #6: It goes without saying that you must always test drive any vehicle you’re interested in buying. The way the car feels when you drive it is one of the most important aspects to your decision. Don’t let the dealer start the car unless you’re there watching them start it. You want to see how easily the car starts, and you want to see how the car runs from cold. If the car has been running, you won’t get a true feel for how the car runs before it’s been warmed up. This is huge in the reliability factor.

Tip #7: Ask the dealer how long they’ve had the car in stock. If the car has been in stock for more than 3 months, you need to know why. Sometimes there won’t be any good reason why the dealer hasn’t been able to sell the car in less than 3 months. This could be their own internal staffing issue. However, this could also be a sign of some mechanical defect. Ask the question. Dealers are much more motivated to sell cars they’ve had in stock for a while, so this can be a way for you to find a good deal. Make sure the price has been reduced to reflect its age in their inventory.

Tip#8: If you’re not comfortable negotiating your purchase price, at least make sure that the asking price is within a reasonable range of current market value. To determine the current market value, go back to your search on-line. Look for that exact year, make and model. For example, you would search for used 2009 Ford Escape in Ontario on-line. Take note of the prices for 5-10 vehicles with similar mileage and the same model, such as Escape XLT. The model, XLT, has certain features which affect the price, such as alloy wheels. The mileage affects price the most. The price of the vehicle you’re looking to buy should be close to others with similar mileage. The dealer will probably have the vehicle listed for sale on-line. Make sure that their internet price matches their asking price on the lot.

Tip#9: No matter how great your used car may be, chances are that it will break-down once or twice while you own it. All vehicles have the occasional mechanical failure. Save yourself a lot of aggravation and unexpected expense by purchasing an extended warranty. Make sure your warranty includes roadside assistance. Hopefully you’re able to get a vehicle that still has the balance of manufacturer’s warranty. If this is the case, buy an extended warranty that offers “wrap” coverage. This means that the aftermarket extended warranty coverage will automatically be effective when your manufacturer’s warranty expires. If you intend to re-sell or trade-in your used vehicle every 3-5 years, it is very wise to purchase rust protection. Whether you live in a bitter, cold climate or a warm, sunny climate, your vehicle will be subjected to harsh weather conditions. Rust protection products will make a big difference in keeping your vehicle in pristine condition. Most dealerships offer rust protection packages which include interior fabric protection, as well as exterior paint and under-carriage protection. This will help to preserve the resale value of your vehicle. Additionally, consider insurance products available at the dealership which are great for protecting the financial investment that you`ll make in your vehicle purchase.

Tip #10: By now, hopefully you`ve found a vehicle that you love, that meets all your needs, that fits your budget and at a dealership that you like dealing with. Don`t buy on your 1st visit. If you really, really love the vehicle and don`t want to lose it, leave a security deposit with the dealership to hold the vehicle. Go home, and go back to your internet search. Make sure that the price is right. Compare your desired vehicle to others available for sale on-line. Your vehicle is one of those shopping experiences that you do not want to be impulsive. The best reason for waiting a day to buy is to test the dealership. If they don`t call you some time after leaving the dealership to try and get you to come back, they probably won`t have the greatest customer service after you`ve made a purchase. You want a dealership that will work hard to maintain your client relationship. They should contact you regularly for service reminders and customer service follow-up to make sure that you`re still happy with your vehicle. If they don`t call you, as an unsold prospect who test drove a vehicle and left a deposit, the chances for after-sales follow-up do not look good. Don`t worry, your deposit is fully refundable. Get it back within 48 hours if you decide that you don`t want to buy from that dealership.

Michelle Ciampaglia
Car Nation Canada

How to Get A College Tuition Loan

Getting a college tuition loan seems hard at first, but it gets easier as you learn how to do it and what to look for in a loan.

Here you’ll find several places to look for a loan, and what kind of loans work best. These pointers are guidelines, of course, but can help you get better loans.

First, places to look for a college tuition loan:

1. Your bank or credit union

2. Your school

3. Federal financial aid (using the FAFSA form)

4. State financial aid

5. Independent lenders like Sallie Mae, Citibank, Chase, and so on.

What Makes The Difference in a College Tuition Loan

Borrowing money for school hinges on just a few points. Your credit is important typically in the case of a private loan. Your school mainly becomes a factor because it needs to participate in the government financial aid system if you use government aid. Qualifying for government aid, whether grants or loans, depends on your income or the income of your parents.

Beyond those, you may have to be careful of hitting the ceiling on your government loans, or limiting yourself to less private loans.

The above comprise the top sources for a student loan. I’ll give you a few more below, less common.

Get The Best Student Loan You Can

First, look at these things to remember when you look for a college tuition loan. Remember, I list these as guidelines. If you can get all of them, great. If not, get the best you can, and understand how the loan characteristics affect you.

1. Low, fixed interest rate

The benefits here should be obvious – stable and hopefully less interest, lower payment, faster payback. A variable interest rate opens your loan up to a higher rate. Of course, during recent events, many variable rates have dropped, but that is not the rule. With a fixed rate, you can set your payment and not have to worry that it will rise over time.

2. Forbearance and deferment available

These can be very helpful. Deferment and forbearance allow you to miss payments at certain times. You will have to apply for these, but the application is easy.

In many cases, when you do not have a government subsidized student loan, you will your interest capitalized, which is bad and increases the balance of your loan.

However, having the safety valve of deferment and forbearance available is a good idea in any college tuition loan. Just don’t use it much. If you have to use it, often you can still pay the interest payment on your loan to avoid capitalization.

3. No capitalized interest

When you use forbearance or deferment, many unsubsidized loans will capitalize your interest. This means that the bank adds it onto the loan, and you then pay interest on the capitalized interest.

Your small loan can become much larger very fast – bad idea. If you can, get a loan that doesn’t capitalize interest. This one can cost tens of thousands in your future.

4. Consolidation

When you finish school, you might have more than one loan. If so, consolidation may help you get a lower payment or a longer payoff. This can really help you.

Those are the most important options to look for in a college tuition loan.

Emergency Sources

When you can’t find a loan from the tuition sources listed above, consider some less common places. IF you have a 401K, you might want to borrow from it. Understand that this may mean you will not have it to grow for your retirement, but you might finish your degree.

Another place to look, your home equity loan. Many people have used a HELOC to go to school. And finally, if you expect a sizable tax refund, use it for tuition instead of a cruise.

Now get to it!

Need more info? Come to Beat-Tuition.com and download my free ebook on grants and scholarships all over the US. Thousands of students every year get free money for tuition. I can show you several places – I’ve done it. You’ll find tons of sources in my free grants ebook at Beat-Tuition.com

 

How To Apply for a Home Loan

There are currently four banks in South Africa that offer home loans to people buying houses, Absa, First National Bank, Nedbank and Standard Bank. All four have slightly different home loan packages, but the procedure you will need to follow is pretty standard.

The Documents You Will Need to Produce
Whichever bank you apply to, there is specific documentation that you will need. This includes proof of your identity (unless you are a foreigner, you will need your small green South African identity book), a marriage certificate if you are married, a divorce decree if you are divorced, and proof of what you earn. If you are employed, all you will need is your latest pay slip or a certified letter from your employer stating how much you earn each month. However if you are self employed, the bank will want to see at least six months’ bank statements. The law also requires that banks obtain proof of residence, meaning that you have to prove where you live. For this you will need a current and valid lease agreement or a current utility bill, electricity or water for example. Sometimes people prefer to purchase property in the name of a trust, a company or a close corporation, in which case additional documentation will be required. If you have already made an offer to purchase a property, the bank may want to see this as well.

The Money
It is vital to work out how much you can afford to spend on a house. All the banks have consultants who will help you do these calculations if you aren’t sure how to do them yourself. Basically what they do is to deduct the total amount you spend each month from what you earn. Whatever is left is called disposable income, which is money you can use to repay the loan. In general, the banks will also use a rule of thumb that allows borrowers to work on a maximum of 30% of whatever they earn. They also usually work on the joint income of married couples. However you need to remember that unless you opt for a fixed interest rate, there is always a possibility that the interest may increase at a later stage, which will have the effect of increasing your monthly repayment. It could of course also decrease, which is why many people prefer to opt for a variable rate of interest.

The Deposit
Some of the home loans that the banks offer are for 100% of the purchase price (for example FNB’s SmartBond), which means that you may not need to pay a deposit. However this is not always the case, and you may need to put down about 20% of the cost price of your new home. One particular loan offered to non-residents of South Africa, also from FNB, requires at least a 50% deposit.

The Application and Bank Requirements
You will make a formal application to the bank of your choice after you have signed an offer to purchase a home. The bank will then follow certain procedures to make sure you are a good financial risk, can afford to repay the loan and that the property is worth what you are offering to pay. First they will do a financial assessment and check your credit record. If there are judgments against you, or if you have been blacklisted as a bad payer, it is very unlikely any bank will agree to give you a loan of any sort. Then they will organize to have the property assessed and valued.

Once the home loan has been approved in principle, the bank’s lawyers will attend to all the legalities, including registration of a mortgage bond and transfer of the property into your name. Invariably you will be required to take out a life insurance policy that will cover the cost of the bond if you die unexpectedly. The final step will be for the bank to pay the person who is selling the property to you.

 

How And When To Get Secured Loans With Guaranteed Lowest Rate

What are Secured Loans? A secured loan is basically a loan wherein you – the borrower – will offer a sizeable value of property as collateral to be allowed to take out the loan from the lender. Hence, you are securing your loan so that the creditor feels secure in lending money to you. The collateral becomes a form of security against the day that you fail to pay back the loan on time. The timeframe between defaulting on your payments and when the creditor can take possession over the form of security (the collateral) may depend on the terms of your Secured Loan, but that is how all Secured Loans generally function.

Why does the creditor need your property as collateral? If you fail to pay back the loan within the timeframe specified in your agreement, the creditor needs your collateral to sell so that he can get back the value of the amount he lent to you. Secured Loans can reduce the level of financial risk that the creditor assumes by lending to you. Secured Loans also gives the creditor a basis for putting faith in your word when you pledge to repay the loan.

The assets you can pledge as collateral in the Secured Loans you are offered will range in size depending on the amount you want to borrow. Generally, the larger the loan amount, the larger will be the value of the asset you have to pledge as collateral. The best type of collateral has to be real estate (like your home – provided it is in good condition) because real estate usually appreciates in value over time. The next most common type of asset used as collateral is a vehicle (though this is not as valuable as real estate because cars depreciate over time due to wear and tear of use.)

People try to get Secured Loans because this is the usually the most convenient way to get money to finance a significant need (like growth of their small business or a down payment on a new home.) If the loan amount you are seeking isn’t very big, do not go for Secured Loans because you get a better deal on a personal loan or extension of a current mortgage instead (plus you need not put up your home as collateral.)

To get Secured Loans with guaranteed lowest rate possible (for your circumstances), you need to figure out how much payments per month you can afford on your current income. Some people like to figure out how much they can borrow using their property as collateral – only to find out the repayment terms are rather heavy. If the lender agrees, you can have a longer repayment term period. But the rule for repayment periods is: the longer the time given you to pay, the bigger is the cumulative payment. Still, at least with a longer repayment period, you need to pay less per month out of your income so maybe a longer repayment period is more comfortable for you to absorb.

Another aspect of Secured Loans you need to bear in mind is the lock-in period. This means, if you borrowed $1000 and agreed to pay within 1 year at 10% interest, then discovered another lender who can loan you more over a longer period of time at a lower rate and want to switch to the second lender, you have to pay lock-in penalties to the original lender (which cover the trouble the first lender now has to absorb because you’re switching to another lender.)

In short, the best advice you can get regarding how to get Secured Loans with guaranteed lowest rate possible (for your circumstances) is to: a) get a loan only when you’re sure what you want; and b) look before you leap.