"Dream manfully and nobly, and thy dreams shall be prophets."Edward Bulwer-Lytton
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A Second Mortgage Vs. A Home Equity Loan
If you own your home and need a loan for whatever reason you have probably considered a second mortgage or a home equity loan to help you pay your bills, buy a new car, or pay for some other investment. However, you probably don't know whether a second ...
Personal Loans For Unemployed – Liberating You From The Tangles Of Unemployment
Like most of the contingencies (the after effects of unemployment safely allow it to be categorised into a contingency), one is rarely prepared enough to face the inconveniences being forced upon by unemployment. And within months of losing job, making ...
Retire Debt FREE!
Retirement. We dream about it, whether it is five years or 15 years away. We fantasize about the day when we march into the boss's office and declare that we are retiring in one month and plan to take off to Bora Bora to unwind from decades of stress and ...
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New Loan Features Can Save Home Owners Hundreds and Thousands of Dollars Without Spending One Penny In Extra Payments
Everyone is always looking to save money one way or another. This is especially true with their biggest bill of all, the house payment.
But is there a way to do this without having to cut back on the things that they really like to do? For some homeowners it is a reality and the savings are, quite frankly, nothing short of amazing. The simplicity of this plan is laughable, and, at the same time, a stroke of genius. Here it is: "Replace The Checking Account with A Home Equity Line Of Credit and It Will Save A Ton of Money."
That is pretty much it, but let's breaks it down a bit more. A Home Equity Line Of Credit (HELOC) has 2 unique features that no other home loan offers that make this possible. They are:
1. It is a Revolving Account– Just like a checking account or a credit card. That means money can be deposited and withdrawn when needed. That is why the lender issues a debit card and checks when someone opens a HELOC.
2. Interest Compounds Daily Instead Of Monthly– While this may sound like a negative, it is really a benefit. Here is an example: Say you just got paid at work. Go to the bank and deposit the check, but deposit it into the HELOC instead of the checking account. Go to the store to buy some groceries. Pay them with a debit card or checks, but use the one from the HELOC instead of the checking account.
Here is how money is saved with this program:
Remember how the interest compounds daily? Go grab a bank statement from the checking account. See where it says "Average Daily Balance." That means with all of the deposits and withdrawals, this is the average amount in the account.
Put this money into a HELOC it will lower the balance of the loan, thus lowering the payment. Because it compounds daily, it does not matter if deposits and withdrawals happen all of the time. Any amount deposited into the HELOC above the basic interest goes 100% to lowering the principal balance. Let's work with some hard number and see it in action.
Take a $150,000 HELOC at 8%. This would make the full payment $1,100, with $1,000 of that going toward interest. A whopping $100 goes toward principal. The average daily balance in the checking account is $10,000.
Deposit the $10,000 into a HELOC, making the balance $140,000. That would lower the interest part of the payment from $1,000 to $933, a savings of $67. Of the $1,100 payment, $167 goes toward principal instead of $100. That might not sound like much, unless it is put in these terms:
This will save $132,000 in interest on a $150,000 loan This would shave a full 10 years off the loan. It would be paid off in 20 years instead of 30. That is 120 less payments of $1,100 per month. A lot of savings for the average homeowner.
Conclusion:
After reviewing the facts features and claims in regards to this loan program, I can honestly say it is one of the only ways of saving a lot of money without having to scrape money together and go on a stricter budget.
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 HELOC, Car Loan Delinquencies At Record Highs (US News & World Report)
Job losses cited as top factor behind souring consumer credit.
Americas Watchdog Offers Assistance For Frozen Or Devalued Cash Equivalents, ARS & Suggests Do's & Don'ts For A Wild ... (PRWeb)
Americas Watchdog's Wall Street Fraud Watchdog is warning that from an economic standpoint, 2009 will make 2008 look like a walk in the park. In the strongest terms possible the Wall Street Fraud Watchdog is encouraging all US, or international investors, who were defrauded with auction rate securities, and or failed or frozen cash equivalents, to not sit on their hands, waiting for the ...
Americas Watchdog Offers Assistance For Frozen Or Devalued Cash Equivalents, ARS & Suggests Do's & Don'ts For A Wild ... (PRWeb via Yahoo! News)
Americas Watchdog's Wall Street Fraud Watchdog is warning that from an economic standpoint, 2009 will make 2008 look like a walk in the park.
First Internet Bank of Indiana selects MRG document preparation services (Finextra)
MRG Document Technologies (MRG), a provider of compliance and documentation services for the financial industry, announced that First Internet Bank ...
First Internet Bank of Indiana Selects MRG For Document Preparation Services (Centre Daily Times)
MRG Document Technologies (MRG) , a provider of compliance and documentation services for the financial industry, announced that First Internet Bank of Indiana , the first state-chartered, FDIC-insured institution to operate solely via the Internet, has selected MRG for its document preparation services.
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