Tag Archives: payment
Know when to get a home loan modification
If life is throwing you lemons and it’s hard to make lemonade, especially when that lemonade is your livelihood,then you need to step back and look at what is going on. 9.2% of Americans today are unemployed. 23% of Americans are “underwater” in their homes. 5.3 million homes in America are in foreclosure.
Lets face it, if you have a family and no place to live, then you are in trouble. So let’s start with the basic necessities, you need your home. Lets try to save it from going into foreclosure and keep you in your home.
The government has a program called Making Home Affordable that helps home owners modify their mortgage. There are requirements you must have in order to qualify you for the program. One of the main requirements is that your payment on your first mortgage (including principal, interest, taxes, insurance and homeowner’s association dues, if applicable) is more than 31% of your current gross income. So that means to help you qualify, you need to lower your debt. Once the service provider can verify your debt-to-income ratio or DTI, they have to also verify that you can pay the new amount. So in order to do that you must lower your debt.
The most important thing is to look for non-essential items to eliminate from your debt. Such items as a car could be a huge debt that when eliminated may increase your chances greatly for the home loan modification.
Most people have a car that they commute with to work. The car could easily take up a big chunk of your monthly nugget. If you factor in insurance and very high gas prices then that nugget could reach between $800-$1200. Think of any possible way to lower that payment monthly because the goal is to decrease your debt. If you can decrease your monthly debt then you are more likely able to get a loan modification by showing the bank that you have saved money in one place and are able to apply that money saved to your home loan. The bank is more willing to qualify your loan modification if they see that you are making an effort to pay the newly reduced monthly mortgage payment. If this means that you have to sacrifice waking up late and leisurely take the car to work and now you must wake up an hour earlier to catch the bus, then just do it.
There are many other subjects to learn about the Making Home Affordable program.
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How to Save Money on Student Loans
There are a few ways in which you can maximize your student loan in order to save money. By using some simple techniques when looking for and closing on your loan, you can save a ton of money. One of the most popular options for saving money on your student loans is through consolidation, but that isn’t the only way. There are other tips that can help you, as well.
It is important to remember that the interest rate in your student loan is subject to change at the beginning of each July. Though student loans are usually pretty low and the rates are fairly stable, there is room for flocculation should the market present that scenario. If you have a low rate now, you can consolidate your student loans in order to lock in that rate.
Over the last few years, people have found success paying for their loan using automatic repayment. This way, you will be sure that the loans are paid on time. When your loans are paid on time, you will avoid the costly penalties that are associated with late or missed payments. In addition, you will save the trouble and cost of writing checks each month.
Be sure to always stay on time with your overall repayment plan. Putting off your payments may seem like a good solution in the short term, but it will cost you money in the long term. If you absolutely cannot repay your loan on time, then you must contact the lender in order to inquire about a deferment plan. If you are eligible, this can help you save money.
Make sure to research and choose the best payment option that is available on the market. There are many payment plans available to students depending upon your schedule and what your capability is. By choosing a suitable payment plan, you will help secure your financial future. Work hard to find a student loan that rewards you for being a responsible borrower. Many times, a lender will offer bonuses for good repayment. If you make on time payments over an extended period of time, find out if your lender is willing to reward your for it.
It is never too early to start thinking about student loan consolidation. This is one of the best ways to lower your monthly payments and capitalize on good interest rates. Interest rates for higher education are lower today than they have been in a long time, so you could save a ton of cash over the long run by locking in these rates. In the future, the rates could go up a significant amount. It doesn’t matter how large or small your debt is, either. School loan consolidation can help take a burden off of your shoulders very quickly. Students today can benefit from a new law that enables students to consolidate their loans while they are still in school. This can save you thousands of dollars as you get the ball rolling earlier, rather than later
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