Express Financial

By John Wetmore

 Here at Auburn Mortgage in 30141, we are always looking for ways to help clients save $1000s in interest costs for their loans. We had a recent discussion with a client about the advantages of a 15-year fixed mortgage over a 30-year fixed mortgage. When we ran some quick numbers, the money saved was staggering. We were thinking that more people should consider this excellent forced savings plan.

Has your mortgage agent or loan officer ever asked you about how much you could afford to pay if it was going to mean you would save over $100,000 through the life of your loan? Everyone always wants lower rates, right? What most people don’t realize about a 15-year mortgage product is that the interest rates available are often anywhere from .75 - 1.125 interest points less than their 30-year fixed counterparts, but the monthly payment increase is not that significant. In the example we were looking at for a $200,000 loan, it was $400 more per month. While these numbers will change from situation to situation and you will need to reference a specific program to get an exact quote, you could literally build tremendous equity and save significant money by using this type of mortgage package.

Some people would question if this is a good use of the money. In this situation, you essentially pay in $75,000 in the 15-years, but you save almost double. In that period, its similar to getting close a 100% return on your investment. How many other investment can you say that? This forced savings program is perfect if you can afford the additional amount each month. It is also a great way for parents to help their children secure their financial future by paying the extra amount.

Looking for a lower interest rate for your refinance program? Depending on how much equity you have in your current property, you may actually be able to shave more years off your existing loan by converting to a 15-year package. Call the office today for a free mortgage consultation and to see how Auburn Mortgage can help you with your personal financial management. We have helped people in Cobb, Paulding, Cherokee, Douglas and Carroll counties and are happy to work our schedule to fit yours

John Wetmore
Mortgage Consultant
770-505-0466
John@auburnmtg.com

Unsecured Credit Card Debt Consolidation Surprises
By Mike Carter

 When consumers get in over their heads in debt, many of them turn to some form of unsecured credit card debt consolidation as a method dealing with mounting bills. Unfortunately, the debt consolidation process can be extremely confusing for the average person.

Few consumers know what their options are when it comes to consolidating unsecured debt and credit cards. As a result, many consumers are caught by surprise at some point in the process. These surprises can often end up costing the consumer a large amount of money.

Most consumers consolidate their unsecured debt to take advantage of lower interest rates or lower monthly payments on their credit cards and other unsecured debt. However, there are a few potential surprises to watch out for.

The first thing many consumers do not understand is that they may be risking their home. If you consolidate unsecured credit card debt by refinancing your home or using a home equity loan, you are actually converting those unsecured debts that have no collateral into a new, secured debt that uses your home as collateral!

Many consumers opt for unsecured credit card debt consolidation to take advantage of a lower interest rate. Most people reason that a lower interest rate means you will save money. However, this is not the whole story!

It is possible to get a lower interest rate and still end up paying more money than you would have originally. Consolidation through refinancing or home equity lines of credit may involve many large fees, transaction charges, or other hidden fees. If you do not factor in the cost of all fees and charges, you may end up paying a lot more money to obtain that lower interest rate.

Yet another surprise for many consumers also seems to be difficult for some to understand, but it is a fact of life in the world of credit card consolidation. It is also one of the most important facts to remember if you are trying to get out of debt and build wealth. Getting a lower monthly payment does not mean that you are saving money.

This “surprise” is actually fairly obvious to some, but absolutely mystifying to others. The truth is that in many cases a lower monthly payment on your debt will cost you more money in the long run, even at a lower interest rate. The longer it takes you to pay off your debt, the more money you will have to pay in interest and finance charges.

It is tempting for most people to take a lower monthly payment and have a little bit of extra spending money every month. However, you could often save much more money and get out of debt much faster by biting the bullet now and paying as much as you possibly can towards your debt. While you may have a little bit less cash now, once your debt is paid off you will have much more spending (and hopefully investing) money in your pocket.

If you are looking into your credit card consolidation options, it is important to get a good understanding of what will happen. By becoming informed, you can avoid nasty surprises and make financially smart decisions with unsecured credit card debt consolidation.

M. Carter is an accredited financial counselor and contributor to the Unsecured Credit Card Debt Consolidation Guide, where you can learn how to avoid even more consolidation mistakes and find out the smartest and best ways to consolidate unsecured credit card debt.

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Answers To Your Private Student Loan Questions
By Bill Miller

 College education is important to everyone. However not everyone has the capability to enter college because of the lack of financial aid. This is where private student loans take place.

Private student loans are being granted by banks and other non-profit financial institutions. This type of student loan can build a bridge to finance additional expenses in terms of education. As a matter of fact, private student loans have a more rapid growth compared to Federal student loans.

However, students should apply only of private student loans if and only if they have maxed out already a particular Federal student loan. There are various requirements needed when applying for private student loans. Most of the time, those requirements are based upon the lenders preferences. It requires that a student must be enrolled at a half-time in a certificate, degree or technical program. Also, a student must be a US citizen or a permanent resident of the USA. Moreover, the student must have an above average credit score. Sometimes the need for co-signers is necessary to have a lower interest rates and monthly bills.

Private student loans are indeed the immediate answer for students who need financial aid.

Private Student Loan Consolidation

Private student loans are credit-based and have more attractive repayment terms as well as interest rates. It can really help in saving money every month unlike the Federal student loans. Private student loan consolidation is simply the process of refinancing and combining private student loans into a single debt only. It may result to a lower monthly loan payments thus will also lessen your worries about your multiple loans.

The very main essence of a private student loan consolidation is to lessen the monthly payment of students who have multiple loans. By getting quotes from various lenders, a student can have knowledge about how to get the best deal with all the prevailing market rates present nowadays. Furthermore, private student loan consolidation can result to an extended loan payment. This gives the student borrowers enough time to pay their loans with fewer burdens. These beneficial advantages offered by the private student loan consolidation are not possible if students have several loans to handle.

There are various private student loan consolidation companies which offer more benefits. One of these is the interest rate reduction which can result to lower loan monthly payments to think of. The options for the loan repayment procedures depend upon the qualifications being required by a particular lending company. Thus, it is also the work of the lending company to choose the best private student loan consolidation program suitable for a particular student loaner.

Indeed, private student loan consolidation brings various benefits. However, one should still be aware of some situations like the drawbacks of having a private student loan consolidated.

The Student Loan Guru brings you this timely article on Private Student Loans. You can find more information on Student Loans and College resources at his student loan blog.

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