Friday, 21 November 2014

Mortgage Rates For 2015 To Be Unveiled Soon – Are You On An Edge?

The top US housing finance agency’s regulator said recently that his agency would soon unveil the new framework in the early months of 2015 for how government-controlled Freddie Mac and Fannie Mae will set mortgage guarantee fees. The Federal Housing Finance Agency called off all plans to raise the guarantee fees because the new director of the agency, Mel Watt said that there’s more study needed before taking this decision. Watt, who was appointed as the director by President Barack Obama to head the body that oversees the nation’s largest housing finance firms, has made increased access to credit score a priority and there are also raised fears that higher fees could also hurt borrowers.

At the hearing of the Senate, the Republican lawmakers criticized the decision to delay the increase in the so-caled G-fees and expressed concern about the new plan to allow lower and more affordable down payments on the mortgages that were backed by the government agencies. Watt smartly defended himself with a more cautious answer. He said that if he raised the G-fees without a further thorough analysis, that would inconsistent with his responsibilities. He also added that he expects to provide a framework and the rational for it sometime during the first quarter of the approaching year, 2015.

2015 mortgage predictions from reliable sources

You must be thinking that it’s only November and we’re already discussing about the mortgage projections and predictions for 2015. But in reality, it’s never too late to start projecting. In fact, according to statistics, majority of the mortgage shoppers start researching the market months before they actuall go through the process of closing the loan. With this kind of advanced research in mind, why would the analysts and experts wait? Here are some predictions for the year 2015.
  • Freddie Mac predicts the average rate for a 30 year fixed rate mortgage to reach 5% by the completion of 2015.
  •  According to the Mortgage Bankers Association, the average interest rate on a mortgage will also touch 5% by the end of 2015.
  • Chief economist for the National Association of Realtors, Lawrence Yun, analyzes a gradually rising trend where the 30 year fixed rate mortgage could climb at 5.5% in 2015.
  •  Economist Dr. Bill Conerly predicts the 30 year mortgage to climb even higher next year, perhaps it may also reach 6% by the end of 2015.
  • The Home Buying Institute’s projection are on the lower side, for a change. Their views match the outlook offered by Freddie Mac and Fannie Mae as they too see that the rates will average at 5%.
The 2015 mortgage rate forecasts are based on industry-wide trends and averages. Freddie Mac’s survey depends on the average rates reported y 125 survey respondents from across different places of the US. In case, you’re a borrower who is about to buy your dream house in 2015, you have to be careful about the mortgage rates. Have a good score and a low DTI ratio to qualify for even lower rates.

About Author

Jimmy Simond is a founder of he share his immense knowledge of Finance in this blog.

Monday, 27 October 2014

Personal Injury Law – All That You Need To Know About It

Personal injury law is the defence of the victims who are suffering from physical and mental pain due to some kind of negligence of an individual or a company. The personal injury law is a unique form of law in the United States. Successful personal injury lawyers are often too aggressive, high experienced and they actively seek the long term well-being of their clients. The fact that mishaps and accidents are commonplace in our lives does not in any sense reduce the confusion and pain that may result when an accident or injury happens with some near and dear family member. If you decide to take steps to protect your legal rights post an accident or an injury, you may have to know some general things about personal injury cases.

A personal injury case - What is it?

Personal injury cases are nothing but legal disputes that arise when one person suffers harm from an injury or accident and someone else becomes legally responsible for that harm. Such a personal injury case can become formal through civil court proceedings that seek to find others who are legally at fault through a court judgment. Such disputes are also often resolved through informal settlements before the lawsuit is filed.

  1. Formal lawsuits: Unlike the criminal cases that are usually initiated by the government, a formal personal injury case starts when a private individual files a civil complaint against another person, corporation or business or even a government agency alleging that they acted carelessly in connection to an accident. This is the action which is known as filing a lawsuit and when you claim about the opponent party’s negligence, you have to make sure you have enough proof.
  2. Informal settlement: However, in reality, most disputes over fault for an accident or injury are resolved through informal settlement. Informal early settlement occurs between those who are personally involved in the dispute, their attorneys and insurers representing both sides. A settlement means it commonly takes the form of a negotiation, followed by a written agreement in which both the parties forgo any further action, choosing to resolve the matter through payment of an agreeable amount.

What are the laws that govern all personal injury cases?

Unlike the other areas of the law that find their rules in statutes, the development of personal injury law has occurred mostly through court decisions and in treatises which are written by legal scholars. Although there are many states that have taken steps to summarize the development of personal injury law in written statutes, for practical purposes, court decisions remain the main source of the law in any particular legal case arising from an injury or an accident.

Any potential personal injury case needs a detailed understanding of the facts, the parties and the law. If an accident has had a bad impact on your life, you should want to consult an experienced attorney to see whether or not you should pursue a lawsuit. If you’re not sure whether or not you have a case, you can always get help of an attorney who can help you with a free evaluation of your case.

About Author

Jimmy Simond is a founder of he share his immense knowledge of Finance in this blog.

Thursday, 16 October 2014

Frugal Living Tips For Securing Your Financial Future In 2015

Now that it’s just 2 more months left to bid goodbye to 2014, it is high time we sit with our family members and discuss all the financial mistakes that we committed during the last year so that we don’t repeat it again in the coming year. If you’ve just purchased your home or car, your goal should be to pay it off right within the next 5 years. But how on earth would you manage to do that when you have huge amounts of debt on your cards? How about adopting a frugal lifestyle this 2015 so that you can cater to the more important expenses and then take into account the less important ones? Living on a tight budget and adopting a frugal lifestyle is no crime and it doesn’t even mean sacrificing all your luxuries. You just have to spend according to your income and also ensure that you save enough from what you make in a month. Have a look at some frugal finance tips for you to follow.

  1. Carpool to work: If you’re using your personal car for reaching your office, stop that immediately so that you could save a considerable amount of your dollars on refilling the tank. If you can carpool to work, you can save sufficient money on your car and thereby use it for other important purposes. You can even put it straight into your savings account.
  1. Cut the cable connection: Do you really have enough time to watch television? Sit back and think. Before paying your cable connection bills every month, how about cutting it off for the time-being to check whether or not you can save enough money. If you really don’t have enough time to watch television, you can cut off this connection and use it for your internet connection. Catching up on recent programs through YouTube could be easier with the internet connection instead.
  1. Stop drinking Starbucks coffee outside: If you’re a person who drops in at a Starbucks corner every hour, give up this habit once and for all. Don’t you know how to make coffee at home or do you think that you don’t have enough time? Well, if you’re living on a tight budget and you’re trying to save money to be able to repay your mortgage on time, even if you don’t know how to make it at home, learn it! Save your dollars by eating and drinking at home.
  1. Consolidate debt: Another step that you may take to save money is to consolidate debt through a professional company. If you owe a huge amount on your credit cards, you have to make sure that you combine your debts and lower the interest rates and the monthly payments so that you can save money in the long run. You can either choose to transfer your balance or take out a personal loan.
Therefore, when you’re wondering about the ways in which you can adopt a frugal life in 2015, follow the steps mentioned above. You might feel bad about not doing the things that you love to do, but have your main goal in front of you to motivate yourself.

About Author

Jimmy Simond is a founder of he share his immense knowledge of Finance in this blog.

Saturday, 4 October 2014

Credit Cards – Are They Boon Or Bane?

In everyday life, many of us have to encounter, one time or other the problem of meeting some urgent financial commitment.  We may try to get a hand loan from one of our friends or relatives or colleagues. At times, if it is possible, we may even try to get a salary advance.  After meeting the commitment and when we next have cash in our hand, we return the money to the person concerned who lent in the first place. If it was a salary advance, the amount will straightaway be deducted from salary. Up to this, everything is fine and nothing to grumble. 

With the constant changes in the modern life style, everybody indulges in shopping for both essential as well as non-essential things. Some of the things so bought would never be used; and some may be used once or twice. But we do not seem to stop this habit of shopping, just for the sake of ‘shopping!’ There is one main reason for indulging in such indiscreet acts. It is nothing but the accessibility of credit cards. Every person employed and with decent income can get a credit card with certain limit; in fact, depending on your income, you are likely to get even more than a handful of such credit cards. It is not a surprise if one has, in his possession, ten such credit cards – perhaps one for each finger!

When you have a number of credit cards what you do? Without taking into consideration the important facts, you go on using all the credit cards, alternatively, for buying things left and right or for settling bills for earlier purchases with installment loans.  Finally, one fine morning, you will realize that you do not have any cash in your hand, after settling the various credit card bills. And, if due to inadvertence, you allow things to continue the same way, you will not have enough cash even to settle your credit card bills. Is it a situation anyone would like to be in?  Certainly not! Then what you should do?

As a first step, close all the credit cards that carry higher rates of interest. As for the other credit cards, you start closing one by one at regular intervals and see to it that you do not possess more than one or two credit cards. You may ask ‘what I will do if I have to buy certain things for which I do not have ready cash?’ The answer is very simple. Try to put off such purchases till such time when you will have enough money in your account. If you cannot wait and you do not have cash, ask one of your friends to spare you this money which you can return as soon as possible. Never forget that ‘credit cards are as good or as bad as pay day loans!’ 

At least as far as pay day loans are concerned, you will have to return the loan amount when you next receive your pay. But, in the matter of credit cards, you are not bound to settle the whole bill; there are provisions for settling in installments. So, you take advantage of it and conveniently forget the accumulation of debts. Instead of availing of credit card facility, why don’t you consider using only debit cards? When you use the debit card, you use only from out of your savings in the account; and nothing more than that! This saves you a lot of embarrassment that may happen when you start using credit cards indiscreetly! Considering all things, credit cards are certainly not a boon; they are just bane!!

About Author

Jimmy Simond is a founder of he share his immense knowledge of Finance in this blog.

Tuesday, 16 September 2014

Some Little-Known Benefits Of Credit Cards – The Necessary Evil Of Our Nation

In the United States of America, there’s always this buzz of credit cards being more of a bane than boon to the society. Given the fact that credit card debt is plaguing the entire nation and is standing as an obstacle to their personal financial growth, everybody thinks that credit cards are nothing but the necessary evil of our nation. While it is true that we can’t step out of our homes without tucking the credit cards into our wallets, it is also true that this is the reason behind the soaring credit card debt within the nation.

Although the debt consolidation companies are there to help you combine your high interest debt into single monthly payments and get rid of the debt burden, yet debt is something that has become a part and parcel of our lives. Among all this financial chaos, people tend to forget the hidden benefits of using credit cards. Credit cards not only make it easier to shop but they also offer us a number of free benefits that many consumers aren’t at all aware of. As long as you use your credit cards responsibly and keep paying off your balances in full, you’re away from danger. Have a look at some little-known benefits of credit cards.

  • Chargebacks: If a company doesn’t give you a good product or service for which you’ve paid, they usually won’t refund the money. But if you have a credit card, that company might even refund the money. This is a process which is known as chargeback. In this process, the credit card company will refund the money to you and then charge you the cost to the business. However, you may require meeting certain conditions like disputing the charge within the given time period, making a good faith effort to solve the problem with the merchant and offering a tracking number to prove that you have actually shipped a lost return back to the merchant provider.
  • Extended return back policies: There are many retailers who restrain returns to only 30 days but usually there are a number of credit card companies that extend this policy to about 90 days. MasterCard will refund you up to $250 for a purchase that has kept you dissatisfied within 60 days if the store doesn’t accept to return the money. On the other hand, Visa’s Return Protection policy will reimburse consumers for all the eligible items up to $250 within 90 days of purchase and the annual limit is $1000 per account.
  • Price protection: If the retailer from whom you bought a product doesn’t have a price-drop policy, you can recuperate the savings that you missed out on directly from your credit card company. In fact, MasterCard and Visa will reimburse you for the price difference on another item that you locate at a lower price within 60 days of your last purchase. This is indeed one of the biggest benefits of credit cards.
  • Shop without money: There are many people who tend to keep their money in the bank and shop on credit or with their debit cards. When you have credit cards, you can get the advantage of shopping without having to use your cash. Even when you forget your money back home, you can fulfil your desires of owning something if you have a card in your pocket.
Hence, if you have credit cards, you should know the ways in which you should use them. Misusing your credit cards can push you into the deep dark hole of credit card debt. Always stay in touch with your financial advisor and help yourself stay away from debt.

About Author

Jimmy Simond is a founder of he share his immense knowledge of Finance in this blog.

Saturday, 13 September 2014

Ballooning Student Loan Debt – What Obama Can Do And Can’t Do About It

The entire world is a twitter about the endorsement of Elizabeth Warren’s bill by President Obama and the changes that are being made to the Pay as You earn program. But the question is that despite all these endorsements and changes, will either of these actions help reduce the student’s financial woes? What s Elizabeth Warren’s bill missing? Well, it seems that this bill has no chance of passing within the House as it is. The Republicans won’t approve a bill that is paid for with the tax of a millionaire. If more of a push was made for enhancing financial education on the repayment options of student loan debt, they could afford to refinance their older federal student loans.

If default rates weren’t near 15%, there would certainly be more revenue coming from student loans that were paid back on time. Experts see that for the large part, defaults are unnecessary. Federal student loans usually come with more options for repayment than with any other type of loan. While you can’t take a year off from repaying your mortgage loan, you can take a year off from student loan repayment when you go through any financial problem.

Defaults are gradually getting easier to remove since the July 1st change that will allow for payment to get out of default depending on the income of the borrower. A woman who was in remission from cancer, got her loans out of default because a student loan servicer instituted this program ahead of time. So much can be done by Obama about debt repayment issues. Obama has been kind enough to take the decision of incentivizing all those student loan servicers who keep default rates low and this will inevitably mean that they have to educate the borrowers more on the student loan debt repayment options. Honestly, the biggest incentive should be loss of government contracts if they’re not properly informing the borrowers after their first late payment. They should help them with an alternative repayment plan and also give them information on payment breaks.

In the educational efforts, colleges should also be incentivized in order to provide more financial education than an online form for exit counseling when students graduate with federal student loans. Obama supports students to go through a 1hour budgeting session with a peer counselor at a student money management school that offers such a service.

Now the sad news is that the new expansion of the Pay as You Earn program to reduce income-related repayments for 5 million borrowers, probably falls on ears that aren’t listening to Obama’s announcement. In addition to that, the income related programs aren’t catered to meet the needs of everybody. As there are different ways to repay student loans, there are some people who can achieve an extended repayment plan by consolidating their loans.

Financial education is very important. After all, the changes that are made to the Pay as You Earn program does help the borrowers but they won’t get any benefit until 2015 December. Hence, there’s lot of time for even more defaults and missed payments without financial education.

About Author

Jimmy Simond is a founder of he share his immense knowledge of Finance in this blog.