How Getting a Refinance Could Impact Your Credit Score

How Getting a Refinance Could Impact Your Credit Score

Mortgage RateA refinance might solve your issues if you’re looking to lower your current mortgage rate and reduce your monthly payments. But take note that opting for a refinance could impact your credit score. Below are some vital things you need to consider before shopping around for a refinancing deal.

Potential Lenders Would Look at Your Credit History

Credit inquiries would be displayed on your credit report. Every single credit inquiry could reduce your credit score. In general, if you are shopping around for a refinance deal within several days of each other, your credit report would show these loan applications as one credit inquiry.

However, if you shop around and apply for a refinance deal for several months, these would show up as separate credit inquiries and applications. In turn, your score would significantly drop, and you might find it more difficult to get a great refinance deal or even qualify for one

Closing your Old Home Loan Could Backfire on You

When refinancing, you are basically closing out your current mortgage with a new mortgage. But when your credit score is concerned, your credit’s age matters a lot because FICO bases 15% of your score on the age of your credit, says a mortgage broker from First Class American Credit Union, a top credit union in Fort Worth.

Basically, lenders consider a long credit history as an accurate indicator of your ability to manage debt, he adds. This means that closing out your home, especially if you’ve been paying it off for years could negatively impact your credit score if you are also looking to obtain a new mortgage.

Using Equity in Your Home Could Negatively Impact your Credit Score

If you have enough equity built up in your home and are looking to use it for doing some home improvements through a home equity line of credit or home equity loan, you would be increasing your debt. This is crucial since 30% of your credit score would be based on your debt load. This means that taking on more debt would likewise raise your credit-to-debt or credit utilization ratio. In turn, this might communicate to lenders that you’re a high-risk borrower.

The Main Takeaway

Getting a refinance could save you some cash if you manage to lower your mortgage rate. However, it’s vital that you consider how refinancing might affect your credit score. If you’re intent on refinancing and want to avoid unnecessary surprises, check your credit history first and go from there.

A refinance might solve your issues if you’re looking to lower your current mortgage rate and reduce your monthly payments. But take note that opting for a refinance could impact your credit score. Below are some vital things you need to consider before shopping around for a refinancing deal. Potential Lenders Would Look at Your Credit History Credit inquiries would be displayed on your credit report. Every single credit inquiry could reduce your credit score. In general, if you are shopping around for a refinance deal within several days of each other, your credit report would show these loan application ...

Home Prices In Utah May Spur Higher Reverse Mortgage Activity

Home Prices In Utah May Spur Higher Reverse Mortgage Activity

Mortgage loan agreement application with house shaped keyringReverse mortgage programs in Utah seem like a better option now due to the increasing home rental prices, which are exceeding the salary of low-income households.

Those who earn the national minimum wage of $7.25 per hour would have to work 98 hours every week to afford a two-bedroom unit in the state, according toa National Low Income Housing Coalition report.

Beneficial Market

While higher home prices are a bane for buyers and tenants, it presents an excellent opportunity for retirees to unlock the value of their investment. A reverse mortgage allows Americans who are at least 62 years old to access the equity in their homes without having to sell it. This type of mortgage, however, carries a lot of responsibility for homeowners in terms of real estate taxes and insurance.

Even if there is no monthly payment, those who apply for a reverse mortgage would still need to insure their home and pay property taxes. The risk of default remains a probability as well, since unexpected expenses such as healthcare costs may cause you to miss on payments. You also need to live in the property for the duration of the loan. Otherwise, it would immediately become due.

Risk Management

Retirees can protect themselves by doing a lot of research and consulting with different mortgage companies. You can shop around for at least three mortgage lenders to compare the best rates and find the best deals.

Take note that your reverse mortgage would depend on your age and value of your property among other factors. Older people who own houses with higher values tend to get more money.

Conclusion

If done right, homeowners can see a reverse mortgage as a valuable addition to their retirement fund. When choosing a mortgage firm, it’s better to consult with a company that offers multiple loan options.

Reverse mortgage programs in Utah seem like a better option now due to the increasing home rental prices, which are exceeding the salary of low-income households. Those who earn the national minimum wage of $7.25 per hour would have to work 98 hours every week to afford a two-bedroom unit in the state, according toa National Low Income Housing Coalition report. Beneficial Market While higher home prices are a bane for buyers and tenants, it presents an excellent opportunity for retirees to unlock the value of their investment. A reverse mortgage allows Americans who are at least 62 years old to access the ...

Critical Financial Management Features Your ERP Software Should Have

Critical Financial Management Features Your ERP Software Should Have

ERP ConceptMost business activities these days have changed from manual to digital. One of the latest digital solutions is the ERP (Enterprise Resource Planning) software. This is a suite of various applications that helps you collect and manage multiple information and operations from a central database.

ERP software consists of various modules. These include innovative financial management systems, customer relationship management, sales and marketing, purchasing, and human resource management, among others. The financial management module deals with various aspects of your capital outflow and inflow.

Here are some of the core features that should make up this core ERP module:

Human Resource Accounting

HR accounting generally covers your organisation’s benefits administration, time tracking, and payroll. It is especially useful for businesses with multiple departments and several locations, as it enables you to manage and monitor employees from one site. The HR department and executives can, therefore, make all their decisions from one point.

Supply Chain Management

This feature helps you keep track of inventory and suppliers, coordinate shipping and manufacturers, and balance your supply and demand. Supply chain management will also enable you to determine any bottlenecks in your supply chain. The core elements you should consider in the supply chain management module are order management, shipment tracking, and purchasing.

Asset Management

This module deals with your machines and other assets. Asset management helps you keep track of your assets’ cost, repairs, and usage. It monitors your asset’s lifecycle and incorporates this data directly into your company’s overall financial outlook. Fleet monitoring, mobile tracking, and BYOD management are some of the core elements of asset management.

The benefits of all the above features are unrivalled. They will increase your company’s efficiency, streamline your processes, help you make accurate economic forecasts, and protect your business from fraud. There is, therefore, a lot you stand to lose by not investing in ERP software for your business right away.

Most business activities these days have changed from manual to digital. One of the latest digital solutions is the ERP (Enterprise Resource Planning) software. This is a suite of various applications that helps you collect and manage multiple information and operations from a central database. ERP software consists of various modules. These include innovative financial management systems, customer relationship management, sales and marketing, purchasing, and human resource management, among others. The financial management module deals with various aspects of your capital outflow and inflow. Here are ...

Keep The Interest Rates On Your Mortgage Low With 2 Smart Moves

Keep The Interest Rates On Your Mortgage Low With 2 Smart Moves

Couple consulting a professional about mortage ratesMany people fail to realize that the key to successfully owning a home lies in getting affordable interest rates on their mortgages. Luckily, you can take measures to increase your chances of getting affordable rates.

With the interest rates holding steady at below five percent, now is the time to buy a home, says American Loans, a mortgage company in Salt Lake City. Unknown to many first-time homeowners, low-interest rates on a home loan are the key to building equity in the house.

It means that you get affordable monthly payments that don’t strain your finance and lower the quality of life. However, getting these low rates is not an entitlement, it is a privilege. In that sense, you must earn the right to enjoy these affordable rates.

Eliminate red flags

As with any financial transaction, lenders are keen to minimize losses, and they do this by advancing money to the qualified borrowers. Before approving your application, they will dig into your financial history. If they like what they find, you become eligible for the loan. On the other hand, if they find lots of red flags, they are hesitant to accommodate your request.

Major red flags include carrying too much debt, delinquency on payments, low credit scores, and a low-income level. These factors mark you as a high-risk borrower with a high likelihood to default on your payments. If they don’t deny your loan, you will have to settle for higher than normal interest rates and private mortgage insurance.

Bolster confidence

Before making a home loan application, you should take a few precautions to increase your chances of success. First, you need to check your credit report which is a detailed account of your financial history. Despite the credit bureau’s attempt to depict an accurate account, errors abound.

In fact, 5 percent of the reports contain errors that deal a deadly blow to the victims’ credit scores. You are entitled to three free credit report each year. Scrutinize them and notify the credit bureau of any anomalies that you spot. Doing so can significantly improve your credit score as well as our credit standing.

Mortgage lenders gravitate towards borrowers with an excellent financial standing, rewarding them with friendly terms. With a little bit of effort, you can get into their good books and enjoy these rates as well.

Many people fail to realize that the key to successfully owning a home lies in getting affordable interest rates on their mortgages. Luckily, you can take measures to increase your chances of getting affordable rates. With the interest rates holding steady at below five percent, now is the time to buy a home, says American Loans, a mortgage company in Salt Lake City. Unknown to many first-time homeowners, low-interest rates on a home loan are the key to building equity in the house. It means that you get affordable monthly payments that don’t strain your finance and lower the quality of life. However, ...

Investment Strategies Worth Considering When Starting a Stock Portfolio

Investment Strategies Worth Considering When Starting a Stock Portfolio

stocks exchange screenWhen you want to save money, it is better to use higher earning investment instruments and strategies. The Palmetto Citizens Federal Credit Union, acting as financial advisers, recommend the use of various investment strategies which protect your savings, at the same time yields bigger earnings compared to certificates of deposit and Treasury bonds.

Investment Strategies

One of the basic ideas behind investing is to have an understanding of stocks. Fundamental analysis is more than just market research or due diligence, it is knowing what you buy or are planning to buy. For investors that means their portfolio revolves around longtime performers. These are companies which have proven through the years that they give out dividends, they have not had any losses, and their value appreciates through the years. The analysis is done through published sources including the annual stockholders' report.

In contrast, there are those who rely on technical analysis. The idea behind this is that the price of a stock depends on the value that the market places on them. Therefore, the value changes on a daily basis. One drawback of technical analysis is that there is a tendency to look at stocks on a daily basis, instead of the long term.

Understanding Brands

There are those who have a personal stake in the stocks that they buy. It is a bad idea to get attached to a particular stock; however, if after due diligence and research, a stock proves that it is good for the long-term, then it is also a good idea to go with personal preference. A product that you buy and has proven to be popular, would usually have a good earnings history. Investing in something that you understand is a simple and wise decision.

It is also important to remember to start investing as early as possible. This will allow long-term investments to grow on their own, and this can grow to a big amount at some point in the future.

When you want to save money, it is better to use higher earning investment instruments and strategies. The Palmetto Citizens Federal Credit Union, acting as financial advisers, recommend the use of various investment strategies which protect your savings, at the same time yields bigger earnings compared to certificates of deposit and Treasury bonds. Investment Strategies One of the basic ideas behind investing is to have an understanding of stocks. Fundamental analysis is more than just market research or due diligence, it is knowing what you buy or are planning to buy. For investors that means their portfol ...

How Can Loans and Mortgages Help You? A 4-Step Guide

How Can Loans and Mortgages Help You? A 4-Step Guide

Man In Suit Showing a Mortgage PaperMortgages exist to help you finance a piece of property so that you acquire it sooner. They are just like loans, where you declare something you own and ask a lending or mortgage company to lend you money equivalent to the value of what you own.

Take a closer look at how mortgages or loans can give you several benefits.

Loans that can help seniors

If you're of a certain age, there are loans that you can take try. For example, financial expert VIP Mortgage states, a reverse loan allows people aged 62 and up to convert a certain value in their home into cash. This way, they can use the funds for other purposes.

Loans designed for veterans

If you've had experience serving in the military, you can also avail of loans tailored for veterans like you. You can benefit from the "VA" loan, such as asking for assistance from loan specialists. They could check for mortgage rates in Tempe, Phoenix, or any city.

Loans for Native Americans

The "HUD-184" Loan will help you if you're a member of the Native American or Alaskan Native tribal communities. This loan acknowledges your heritage as one of the first to live in the country. The loan will help finance your desired house or projects in mind.

Investment loans

Lastly, you can avail of the investment loans if you're a business-minded individual who plans to finance a home that you will rent out to others.

Investment loans understand your goal of treating the property as an "investment" because while you may not live in it, it will serve as a source of income for you once you start renting it out. In helping out others, you help yourself as well.

These are only some of the ways a mortgage can help you. For the others, visit your nearest lender.

Mortgages exist to help you finance a piece of property so that you acquire it sooner. They are just like loans, where you declare something you own and ask a lending or mortgage company to lend you money equivalent to the value of what you own. Take a closer look at how mortgages or loans can give you several benefits. Loans that can help seniors If you're of a certain age, there are loans that you can take try. For example, financial expert VIP Mortgage states, a reverse loan allows people aged 62 and up to convert a certain value in their home into cash. This way, they can use the funds for other purp ...

Don’t Do Any of These 4 Cash Loan Mistakes

Don’t Do Any of These 4 Cash Loan Mistakes

woman in disbelief looking at laptopWhen you get riled up in a financial emergency, a cash loan is what they would often think of their easy way out. This is partially because the terms under this loan are less complicated as well as offer instant approval. As you embark on this type of credit deal, you should be wary of possible pitfalls so you could avoid committing them in the future. To know some of these, here's the list of things you must stop doing:

Applying for a New One to Pay Old Debts

If you can barely keep up with your monthly repayments to take off an existing loan, then it's not a good idea to pay it off with another loan. Doing this would only lead to another debt on your list. If you look into it, you don't truly take it off. Instead of applying for a new loan, the best thing to do is to seek advice from a financial adviser.

Borrowing More Than What You Need

In essence, cash loan services in Salt Lake City are meant to help you cover for sudden financial shortfalls. That's why you have to stick with borrowing enough just to pay those off. Otherwise, if you borrow more than what you need and can afford, you might just simply find yourself wind up with additional financial obligation.

Applying a Loan for Someone Else

While your willingness to help others is quite an admirable thing to do, your generosity should never go as far as cosigning a loan for them. Before agreeing on this type of financial arrangement, make sure you fully understood the repercussions this might involve. Better yet, never accept this type of deal because you might suffer the consequence in the end.

Not Researching & Knowing Everything

One of the biggest reasons people often get caught up in fraudulent deals and agreements is they fail to understand or know how the process works. Instead of being curious about everything, they believe what the agent had told them without even asking questions simply because they want it done. To get away from those unimaginable consequences, it pays to research and ask as many questions as you can. This way, you'll be more well-informed about the transaction you're about to get into and see if it's a good match for you.

A payday loan is a great financial option especially when you're in need of immediate cash. Just make sure to keep yourself away from these common borrower's mistake for a worry-free transaction.

When you get riled up in a financial emergency, a cash loan is what they would often think of their easy way out. This is partially because the terms under this loan are less complicated as well as offer instant approval. As you embark on this type of credit deal, you should be wary of possible pitfalls so you could avoid committing them in the future. To know some of these, here's the list of things you must stop doing: Applying for a New One to Pay Old Debts If you can barely keep up with your monthly repayments to take off an existing loan, then it's not a good idea to pay it off with another loan. Doin ...

Why Millennials Are Not Buying Houses

Why Millennials Are Not Buying Houses

Millenials on the beachMillennials – young people born after 1980 – are delaying marriage and can’t afford to move into their first home because of soaring house prices. 36% of adults aged 18 to 31 still live at home with their parents.

Fewer young adults are leaving home early, getting married or buying their first home. More are still living with their parents in their 20s and even early 30s.

Why the Young Aren’t Flying the Nest

One of the main reasons for this is the huge cost of tuition. Once they graduate from college and university, they are saddled with a large debt that take a chunk out of their disposable income. They cannot spare any to save for buying a house. 71% of recipients of bachelor’s degrees leave university with a loan to pay off.

A poor job’s market is also to blame. There are fewer jobs available today than there were in the 1960s. The unemployment rate for people in their 20s with a BA is 13.5%.  For those in work, wages are comparatively lower. The starter rate given to young workers makes it difficult for many to raise enough for a down payment on a home.

Down Payment Help

Wasatch Peaks Credit Union explains that down payment assistance in the Ogden area is available to local young adults to help them purchase their first home. Down payment assistance programs offer loans or grants to cover the cost of a down payment.

For example, if a first-time buyer wants a $200,000 home, they would need $6,000 for a 3% deposit on the property, an amount that would take five years to accumulate if they could save $100 a month. An assistance program might offer a 2% deposit that would either eliminate the cost or cut it down to a period of months.

Poor job prospects, low wages, student loans and high house prices are keeping young adults in the parental home longer, but a down payment assistance program can help them own their first home.

Millennials – young people born after 1980 – are delaying marriage and can’t afford to move into their first home because of soaring house prices. 36% of adults aged 18 to 31 still live at home with their parents. Fewer young adults are leaving home early, getting married or buying their first home. More are still living with their parents in their 20s and even early 30s. Why the Young Aren’t Flying the Nest One of the main reasons for this is the huge cost of tuition. Once they graduate from college and university, they are saddled with a large debt that take a chunk out of their disposable incom ...

Steps to Achieve Financial Security

Steps to Achieve Financial Security

teenage girl posing with a piggy bankThere are certain habits that you need to develop to achieve financial success and enjoy early retirement. These include controlling your impulse to spend money on wants and evaluating your expenses.

An independent financial consultant can also help you build a financial plan, which is useful in mapping out your financial future.

Follow these steps to grow your savings and secure your finances:

Plan for the future

People who plan their financial future have a better chance of having more wealth than people who do not. This is because financial planning allows you to focus on your short and long-term goals and meet them by following a balanced plan.

Preparing for financial stability means setting a timetable to achieve short-term goals such as paying off your student loans within two years and long-term goals like investing in a new home over the period of five years.

Financial planning does not have to be complicated. You can easily start by making a list of your expenses and keeping an eye on your debt. You can also write down your financial goals, but make sure to avoid generic goals such as “I want to be rich.”

It’s better to identify something more concrete, such as “Invest $5,000 in mutual funds over 12 months.”

Live a modest lifestyle

Living modestly sounds much simpler when you hear it from other people, but to practice this kind of lifestyle may not be that easy for many of us. You might be thinking that it is simply impossible to be frugal when you have recurring bills to settle and other expenses to cover each month.

Believe it or not, you can still have extra cash after you have paid off all your bills. Instead of spending this money on buying new things and living a luxurious lifestyle, consider using it to invest or clear out any remaining debts you have.

If your salary increases, you have more opportunity to save up money. The important thing to remember when you advance in your career and receive greater remuneration is to maintain a modest lifestyle and treat the extra money as a budget that will go to fulfilling your financial goals.

Money problems start when people feel like they need to raise their standard of living as their income grows. Recognize that no matter your current income, you must live below your means if you want to retire early.

Become financially literate

Understanding basic money management is crucial to achieving financial freedom. Unfortunately, many of us do not learn investment at school, and it may take months or years first-hand experience of investment and business to get a good grasp of how things work. But with careful study, a good plan, and determination to stick to that plan, achieving financial freedom won’t be as difficult as it sounds.

There are certain habits that you need to develop to achieve financial success and enjoy early retirement. These include controlling your impulse to spend money on wants and evaluating your expenses. An independent financial consultant can also help you build a financial plan, which is useful in mapping out your financial future. Follow these steps to grow your savings and secure your finances: Plan for the future People who plan their financial future have a better chance of having more wealth than people who do not. This is because financial planning allows you to focus on your short and long-term g ...

The Many Times You’re Wrong About Utah Bankruptcy

The Many Times You’re Wrong About Utah Bankruptcy

a man pulling out an empty pocketUtah bankruptcy has always had an air of mystery around it, especially if you had never filed for one in the past. Not understanding what it is for could naturally strike fear into the hearts of first-timers. Believing that it is dishonest or unethical is perhaps the biggest misconception that you might have about it. Bankruptcy has its negatives, but it's actually the legal way to get some relief from your financial troubles.

If you think you need to file for bankruptcy but reluctant to do so, debunk these common erroneous beliefs first:

You Can File for Bankruptcy Whenever You Please

Any Chapter 7 bankruptcy attorney in Utah would tell you that you cannot start the process until you receive credit counseling and debtor education. You must fulfill these requirements six months before filing for bankruptcy.

This option is not the law’s way of giving you a free pass on your past financial mistakes, but rather it means offering you an opportunity to do things right. Without adequate financial literacy, you might bury yourself with debts again and be trapped in a vicious cycle for a long time.

You Can Escape All of Your Debts

No, this process will not make you immune from all debts. Utah has a list of non-dischargeable debts that bankruptcy cannot eliminate. Alimony and child support are two of the financial obligations you will still have after the process. Moreover, you will still be liable for fines and penalties for breaking the law.

You Cannot Get Credit in the Future

Bankruptcy is a fresh start, not a dead end. Although it will stay on your credit report for up to 10 years, you can start rebuilding your credit after bankruptcy. This process aims to free you some of your legal debt obligations to help manage your finances moving forward. In fact, it is not uncommon to receive credit offers with reasonable interest rates after filing for bankruptcy.

Bankruptcy is not all roses, but its benefits usually outweigh its disadvantages. Speak with an experienced lawyer to discuss your situation and know the right type of bankruptcy for you.

Utah bankruptcy has always had an air of mystery around it, especially if you had never filed for one in the past. Not understanding what it is for could naturally strike fear into the hearts of first-timers. Believing that it is dishonest or unethical is perhaps the biggest misconception that you might have about it. Bankruptcy has its negatives, but it's actually the legal way to get some relief from your financial troubles. If you think you need to file for bankruptcy but reluctant to do so, debunk these common erroneous beliefs first: You Can File for Bankruptcy Whenever You Please Any Chapter 7 ban ...