Tag Archives: finance
Mortgage refinancing brings many benefits to the table. It lets you snag today’s record-low rates and even turn your property into an ATM by tapping into your home equity. But despite the fresh start it offers, it’s not without downsides, particularly in the credit department.
According to an expert from Altius Mortgage Group, many homeowners are not aware that applying for a mortgage refinance in Utah and other parts of the country may affect their credit rating. The extent of damage varies, but you need to remember these to minimize its impact:
Avoid Being a Serial Refinancer
When you apply for a refi, your lender would pull your credit report to scrutinize your history. One credit inquiry or a series of inquiries for a single refinancing application would normally just count as one and shave about five to 10 points off your score.
The credit pulls would begin to hurt if you refinance on a regular basis, however. For serial refinancers, the credit inquiries would add up and drag your score to a less acceptable level. As your credit score comes into play in loan applications, applying for your second or third refi may sabotage your chances of approval.
Do Not Wait for Your Current Loan to Mature
A refi is a completely new loan. In essence, the refinance would pay off your current mortgage to begin a new line of credit. In doing so, the history in your old credit account would eventually lose its value. Especially if it’s good, it would fall off your credit report in about 10 years.
In addition, replacing an old account with a new one would shorten your credit history’s average length. For this not to be an issue, keep the age gap between your old and new lines of credit to a minimum.
Keep Your Loan Size Small
Especially in a cash-out refinance, a huge loan amount would usually result in a lower credit score. The size of the loan would increase your credit utilization. The more you use your available credit, the deeper you push your credit score down.
A refi has its consequences, but they shouldn’t hurt your credentials that much if you’re careful. Considering its potential impact to your credit, you have another compelling reason to exercise your due diligence before you reset the clock of your mortgage.
Title lending has always been bashed by pro-consumer groups in Utah, which repeatedly assert the very nature of this type of financing is predatory. There’s no denying that title loans charge relatively steep rates, but that should be expected, considering the high level of risk lenders take in these transactions.
Not to say that all lenders are clean, but sometimes the borrower might be the one responsible when a title loan doesn’t work out. Why? Here are some of the blunders debtors do that make this secured financing even riskier:
Being Overoptimistic to Repay the Loan on Time
If you plan getting a car title loan in Taylorsville, West Jordan, or Spanish Folk, make sure to keep your confidence in check before signing on the dotted line. You may be sure of yourself that you’d have the money come payment day, but disregarding the possibility of things not turning out as planned is a cardinal sin.
According to a Vanderbilt University study, most borrowers are so positive they could repay the loan on time, only to find themselves facing a larger debt to shoulder after being unable to cover the balance.
Failing to Be Fully Informed
Title loan lenders usually disclose all the information a borrower needs to know about the transaction, but it doesn’t mean the message gets across successfully. Unless you’re 100% sure you understand what exactly are the consequences should you default, and what options you have to avoid repossession, shying away to ask your pressing questions is the worst you could ever do.
Disregarding the Lender’s Incentives
Rewards may just be a bonus, but not using them to your advantage renders them worthless. You should be aware if your lender is running any form of incentive scheme to help save you in interest and finish your loan early. This could serve as an additional motivation for you pay off your borrowed sum and prevent losing your vehicle.
All financial products involve some kind of risk, but lending money always become unnecessarily dicier without doing your due diligence. Do your part, leave no stone unturned to be a smart borrower, and obtain the debt you need.
Inbound investments are like a swarm of bees; they fly where they can form another hive and thrive. Just the same way, the need to branch out and start new investments takes more than just a gut feeling and a brisk assessment of survival resources. There should be a foreseeable change in the investment climate in the future.
Such an opportunity is found in the Sunshine Coast. The records of past progress and projections for the coming years all confirm that the area is ripe for business.
Potential Commercial Property
The commercial property investments present viable options for future accommodation business owners. Located in the city is a line of motels for sale. Sunshine Coast offers starters a great avenue for exploration and play, making it an ideal investment destination.
Projections show that the tourism sector is set for further growth in the next few years, so property investors can enjoy support from the local council and government. Their strategies include public projects and other value adding recreational activities that are expected to top last year’s performance – the Sunshine Coast economy recorded a net worth of approximately $12 billion.
Charting New Development Territories
According to the Sunshine Coast official government website, the state is charting a new economy over the next 20 years. They aim to spur a business sector that is responsive to market demand and will deliver greater prospects for the region and the greater community.
Investors may see a fast-changing Sunshine Coast as growth strategies in lifestyle and natural assets are unfolding. To wit, some of the long term plans and projects currently in the process of being rolled out are the construction of the public university hospital, airport expansion project, and development of the Caloundra CBD and Maroochydore City Centre.
All these and more make the Sunshine Coast a potential for growth and expansion location for business people and investors alike. Make the decision to invest where the economic progress is planned and served, and find out what is in store in the Sunshine Coast.