Category Archives: Finance

Could You Sell Your Home if You’re Not Done Paying Off Your Mortgage?

a houseA home loan’s repayment period is usually anywhere from 10 to 30 years, but a lot of things could occur in that span of time. Perhaps you want to relocate, or you need a smaller or bigger home, or simply feel that your current home isn’t right for you. While these are perfectly good reasons to sell your house, would it be possible for you to sell even if your house is still under a mortgage?

How Much Do You Still Owe on Your Home Loan?​

Essentially, the only thing standing in your way from selling your house before completely paying off your home loan is your mortgage lender since technically speaking, your lender still owns your house. This means that your mortgage lender in Salt Lake City could foreclose on your house, repossess it, and sell it to compensate for your loan balance if your default on your home loan.

What are Your Options?​

The best way to sell a house under a loan is to try to sell it for an amount that’s higher than your mortgage balance. Most lenders would be willing to approve a sale if they’re 100% certain that you would use the proceeds of your home sale for repaying your loan balance. Once you’ve paid off your balance, you could then use the remainder of the sale proceeds for whatever you want, perhaps as down payment for a new home.

On the other hand, if your house is worth less than your home loan balance, you could try negotiating with your lender for a reduced payoff amount once you sell your home. Depending on your particular circumstances, your lender might also be willing to allow the buyer of your house to repay your loan balance. However, the buyer would need to meet very stringent credit and income requirements to make sure that he or she doesn’t default on the mortgage.

Knowing your circumstances and options would help you make more informed decisions, particularly if you have issues on your house or your mortgage. Your best recourse is to speak to your lender directly to determine how you should go about selling your home, provided that your lender allows you to.

How to Determine a Good Rental Property

miniature houseEvery investor wants a good deal when it comes to purchasing property, especially if it is a rental property. Real estate is a tough business with many hidden factors that should be carefully considered before money changes hands.

Before you set your budget or begin your search for property in Denver, consider factors that will affect your potential profits. You can consult with rental management companies in Denver as they have experience in identifying rental properties that could turn a profit. They can walk you through these three important matters:

Return on investment

If you are buying property at a low price and you would need to renovate, then you should consider the total costs, time, resources, and effort. Your potential return on investment is the most crucial factor to consider when purchasing or investing in a rental property. Also, factor in how many tenants are willing to pay for rent and ask to see the accounting books from the owner to determine profitability. If the cash flow is limited, you might not get substantial returns from the property if you don’t put in extra work in improving the building or marketing it to increase occupancy.

Location

The location of the property determines its value, too. If the demand for rental rooms or houses is simply low at the property’s general location, then you can’t expect to make much money out of it no matter the renovations you make. Take your time to research the area and find out the real estate trends in the region. A low purchase price can’t make up for the losses due to weak demand.

Also, scrutinize the deal if the rental property is too affordable for its location. There is always a reason why a real estate in a prime area is in the market for a meager price. Check for problems in the foundation, plumbing, or sewer. You should also find out if the area is prone to flooding. Never spend money unless you know everything there is to know about the property and whether it will be a good investment.

The key to succeeding in real estate investing is to identify the good bets from the bad. If you aren’t knowledgeable in real estate, get a professional to help, and you won’t regret spending your money on that property.

Which Utah Housing Loan is Right for You?

Woman consulting with agentEstablished in 1975 by the Utah Legislature, the Utah Housing Loan Program aims to provide housing for lower-income families who are unable to purchase a home due to lack of funds (i.e. for down payment and closing costs).

You can apply for Utah housing loans here in Ogden from lenders that can guide borrowers throughout the application process and achieve their dream home.

What are the loan types available under this program? And which one is right for you?

First Home Loan

This loan is for first-time homebuyers. You can borrow up to 6% of the previous mortgage loan for down payment and closing costs. To qualify, you must have a credit score of at least 660. Mortgage insurance is also required.

Each county, however, has income restrictions, although most would have a ceiling of $95,000 of annual income.

Home Again Loan

Home Again Loan is for repeat homebuyers. Like the First Home Loan, it offers 6% of the first mortgage loan amount for down payment and closing costs. The program, likewise, sets a credit score of at least 660, and it also requires mortgage insurance.

Score Loan

This loan program is for a homebuyer who has a lower credit score, i.e. below 620. It only offers a lower first mortgage loan amount (4%) for down payment and closing costs. Nevertheless, this loan type can give you a higher interest rate, which would lead to higher monthly payments.

NoMI (No Mortgage Insurance) Loan

NoMI loans are for those with good credit scores, i.e. at least 700. Requiring no mortgage insurance, it offers the highest interest rate of all loans under the Program. However, it only allows one to borrow 4% of the first mortgage loan for down payment and closing costs.

These are some of your choices. Make sure you choose the right one.

How Much Did California Workers Earn In The Last Quarter Of 2017?

City view of California

City view of CaliforniaSalary growth in most parts of California rose 6.5% in the fourth quarter of 2017 to an average of around $1,440 per week, according to a federal employment study.

During the last three months of the previous, almost 9.70 million people were employed in different industries from construction to food processing. Human resources career opportunities in Modesto and other cities seemed to be plenty as well, particularly because of the food business.

Industry Value

The California League of Food Producers said that the state’s food processing industry supports 760,000 of direct and indirect jobs. High-tech and oil refinery are the only larger sectors in the state, yet it doesn’t downplay the economic contribution of the food packaging business.

CLFP CEO Rob Neenan said that the industry generates around $200 billion in annual production, including canned products. The strength of the food processing industry means that demand for labor remains quite strong. Companies will need to improve their recruitment efforts by first hiring people who would then look for qualified candidates. In certain counties, it may be easier to attract potential employees due to higher salaries.

Salary Growth in Other Counties

The federal study cited the increase in weekly pay in four counties between October and December 2017. The average salary in Los Angeles, Orange, Riverside and San Bernardino Counties increased $60 to $1,231.

Los Angeles County recorded the highest jump in salaries, up by $82 to $1,343 per week, while the lowest was in Riverside County with an average weekly pay of $873. It’s possible that salaries have remained the same so far in 2018.

Conclusion

Some workers may still find the salary increase to be small compared to the cost of living, home prices and other economic factors. However, some companies may be willing to offer an above-average salary for jobs that are in demand at the moment.

Three Things to Look for in a Real Estate Broker

Handshake of a real estate agent and a client

Handshake of a real estate agent and a clientIn 2015, a survey found that Florida had almost 29,000 new real estate brokers. This is the highest the sector reached in the past 9 years, and the number has steadily grown in recent years. This is good news for the real estate market, as well as people who are looking to buy homes in the state.

But, with so many real estate firms and brokers to choose from, how do you know which one can meet your needs? Remember these when you look for a seasoned and reliable realtor in Florida.

Years of Experience

Shayla Twit, a seasoned realtor in Saratosa, FL, notes that not because a person is new to the field, it doesn’t mean that he or she is not fit for the job. However, when it comes to a commission-based career such as brokerage, someone must be capable of offering quality service to be able to survive long in the trade. With years come experience, so it’s good to look for a broker with at least a few years of experience.

Number of Current Clients

Most people think that veteran brokers have a long list of clients. Maybe yes, maybe no. It really depends on how the broker decides to handle his or her clientele. Sometimes, in order to provide better quality service, even veteran brokers turn down new clients. The better question to ask is the average number of clients he or she is currently handling. Asking this would give you an idea if your broker can handle your requests effectively.

Tech-Savviness

If you’re expecting your broker to answer inquiries as fast as you need them to, look for brokers who are tech-savvy. Let’s be honest here, some of the veteran brokers are not that comfortable using a smartphone or even answering emails. So, if you want someone who is always raring to answer, try to look for someone who is quick to reply to your inquiries using all channels possible.

Of course, you need to look for a real estate broker with the right and complete credentials, as well as people skills. Keep these in mind if you’re planning to buy a home in Florida and you need a broker to navigate the real estate market.

A Strategy to Make Your Home Ownership Dream a Reality

Front shot of modern homeBuying a home has and will always be part of the American dream. Unfortunately, not everyone gets to realize it. There are many reasons, one of the most common is making a down payment.

Although it’s possible to secure a funding program that doesn’t require putting down payment to purchase a home, there are benefits to still doing so. In Ogden, you’ll find housing grants that offer first time homeowners down payment assistance.

Making your dreams of homeownership become a reality

In a typical setting, home buyers would need to put down at least 20% of the property value they wish to purchase. For instance, a house that sells for $100,000 would require the buyer to make a $20,000 down payment. While you can save up for it, it’s still a lot of money, which may discourage you to push through with your buying plans.

Down payment aid is available, with some offering as much as $5,000 assistance for those who qualify. If you meet the requirements, this would mean that you would only have to save up $15,000, and you can already purchase your dream home.

The reasons to strive to make a down payment

There are several good reasons you’d still want to make a down payment. First, doing so allows you to the additional (and expensive) cost of private mortgage insurance. Most lenders require PMI when borrowers can’t complete a down payment, and because this is long-term insurance, it can quickly add up and balloon your overall mortgage expenditures.

Besides, putting down money also makes it easier to pay off your mortgage, since the interest will apply on a smaller amount of borrowed money. The sooner you pay your debts, the sooner you can live a debt-free life as a homeowner.

Trending: Mobile Banking Usage Rapid Surge and Benefits

Person using phone and laptop

Person using phone and laptopThe usage of mobile banking in the United States has seen a steady growth since 2009, according to The Statistics Portal and the Forbes Magazine. The share of mobile phone owners using electronic banking and mobile banking applications surged from only 18% in 2009 to 46% in 2015.

The figure was expected to increase to 51% in 2016. Furthermore, from 57 million, the number of mobile banking users in the U.S. has been expected to spike up to 111 million in 2016.  This trend might continue over the next few years.

The reasons for the rapid increase in mobile banking new account applications and usage are apparent. But do you know that eBanking offers competitive advantages not only to the users but also to financial institutions?

Tool for Financial Institutions

According to research, mobile banking helps financial institutions study the market trends and the behavior of their clients. This allows them to map and draft the best strategy to stay ahead of the competition.

Each bank is also using mobile banking apps to establish a customized eBanking strategy that would appeal to their clients. In the long run, mobile banking also helps banks keep their clients, aside from winning new customers.

Business Banking Benefits

Mobile banking also works for businesses, as it allows management to track transactions and secure accounting notes. Companies can also observe the capital market trend through the mobile banking apps. The best benefit for businesses is that it allows finance officers to manage their accounts anytime and anywhere.

Most Convenient Personal Banking Experience

For bankers managing personal accounts, mobile banking is one of the wisest developments in the finance industry. It enables them to pay bills anytime, anywhere, and secure their salaries and savings with just a few clicks.

These advantages work for the general banking population as the mobile banking processes are evolving. Banking institutions are also addressing concerns regarding online security to keep clients from worrying about the hacking of savings and business accounts.

Home Purchase: Can Your Finances Handle It?

A couple discuss with the purchase of their new house

A couple discuss with the purchase of their new houseIf you’ve been renting a place for quite some time now, you may be considering buying your own home. Making the final decision, of course, is hard since you need to think whether or not your current finances or income can take on a mortgage payment. It is most confusing, especially if you’re used to paying a fixed amount for your rent every month.

Buying is definitely more expensive than renting, as you move on towards owning a home. You also need to get qualified for a mortgage to finance the property. There are, however, many benefits to this like building equity, tax deductions, and creative control over the house. These are something you can’t do with a rental, as you don’t own the home.

Additional Monthly Payments

If you’re thinking of buying, the monthly payment is probably one of your biggest concerns. The payment will include not just the principal, but also the interest, taxes, and insurance. This may cause your monthly loan payment to change from year to year. Mortgage companies in Tempe note that this will also depend on the type of loan you choose.

Putting Money Down

Down payment is probably the biggest hurdle. The good news is there are some loan programs that will allow you to get a loan even with little money down. If you have been saving for a home for some years now, it is even better. You can also get help from family members, as some mortgage programs allow gift funds to cover down payments.

Utilities and Maintenance

Paying for utilities is a part of renting and owning. If you want to get a property that is bigger than the place you’re renting, you may need to pay more utilities, especially for cooling or heating a larger house. There is also the maintenance, as every home will need some sort of routine care. You will need to cut grass or even a hire a contractor if something breaks.

A home purchase is mostly a financial endeavor. Be sure to assess your financial readiness and check your credit score. Your payment history and debts are important for all lenders. You can also get pre-qualified first to know the amount you can qualify for and learn more about different loan options.

Ways to Fund Your Small Business

100-Dollar Bills on a White BackgroundBusiness financing is often a challenge, especially for entrepreneurs who are just starting on the path of business ownership. Whether you are looking to start your dream business, expand your start-up company, or introduce new products and services to your clients, here are a few ways you can get funding for your business.

Business Loans

There are many lenders out there offering various loan products for small businesses. Some are banks while others are independent financial services providers. When checking out a financial business company, look at their loan terms and rates, and evaluate which one is best suited to your needs. Do your research and find out if there are any hidden terms or fees before you sign up for a loan.

SBA Loan

The U.S. Small Business Administration also helps entrepreneurs to start and run their business by giving them loans. An SBA loan, however, is stricter and requires a guarantee that it will be repaid.

Factoring

Factoring involves the selling of a company’s receivables at discounted prices to get cash up front. This method is good for companies with poor credit. However, factoring is expensive since a percentage, usually about 2% to 3% of the total amount, is charged as fees.

Credit Card

If you need to clear small bills when in a cash crunch, your credit card can come to your rescue. However, using one to fund your operations is a little risky as the rates are expensive and you can get into a financial mess if you fail to manage your debts well.

Whether you are just starting or already growing your business, you will need to seek financing help to keep it up and running. Make sure to weigh all your options well before you make any decision.

The Many Benefits of Startup Business Loans

Businessman pressing a Business Loan concept button. Instagram styling applied.Turning an innovative idea into a business is easier than ever. Thanks to the Internet, anyone savvy enough can market products and services and become a successful entrepreneur. The real challenge, though, is taking your venture to the next level. If you believe and can prove that it can be more profitable down the road, you need extra capital to scale up your production.

Fortunately, there are many ways to beef up your coffers. Many founders behind early-stage startups court investors, but TAB Bank noted that some are more willing to take the risks involved in obtaining a loan from a reputable bank.

Here are the notable advantages of online startup business loans overseed and Series A rounds:

No Equity Sacrifice

By and large, banks wouldn’t take a share of your business. They only want to make money from the deal through interest, which means you get to own 100% of your startup after the deal. If your venture becomes financially sustainable in the long run, you’d reap all of the potential rewards for yourself alone. You may eventually have to reach out to investors for further growth, but a loan could make your business more valuable by then.

Low Interest

Many bank startup loans come with low interest. Non-traditional lenders usually charge higher rates since they tend to work with unconventional borrowers. Of course, the amount of interest you could get depends on how risky your venture is. But if you show that you have it all figured out, you’d find a bank that’s comfortable to lend you money with a favorable interest. Plus, you could enjoy tax benefits from the interest you pay over the lifetime of your loan.

Fast Process

Securing a loan from a bank you’ve had a positive history with is simpler. Of course, many other factors could affect the speed of your application. Startups with a decent track record generally obtain loans faster than businesses that are not yet up and running.

In business, everything involves some form of risk. The key is to take a 360-degree evaluation of your venture to see the best source of funding you should seek. If you feel securing a business loan makes sense for your situation, and you qualify for one, don’t pass up on this great opportunity.