What steps to take in order to eliminate your home loans debt

Debt has become a disease for the Americans and most of them have accumulated debts on their credit cards, student loans, auto loans and even home loans. Home loan is the biggest loan that is taken out by a person as it involves a huge amount. This is a secured loan where the lender keeps your house as collateral to the loan so that if you default on the payments, they can repossess your house and sell it off to recuperate the money. This entire process is called foreclosure and if you want to avoid it and retain your home ownership rights, you must know the ways in which you can reduce your home loans debt and repay the entire loan without falling back on other debt obligations. Check out some ways in which you can do so

You can make extra payments: Instead of making the scheduled payments towards your mortgage loan, you can start making extra payments every month or you can schedule your payments in a bi-weekly manner so as to get debt free sooner. However, before repaying through this option, you must check whether or not your mortgage loan carries any kind of pre-payment penalties as this may subject you to unnecessary fees.

Go for a refinance: If you’ve fallen back on the monthly payments of your home loan and you see that the present mortgage rates are pretty low, you can go for a refinance. Take out another mortgage loan with a lower interest rate and use the proceeds in repaying your original loan. Then start repaying the new loan in easy and affordable monthly payments. You can change the term of the loan, the interest rate and also the loan program through a refinance.

Modify your loan: You may also modify the terms and conditions of your present loan so that you can avail better rates that can simplify the debt repayment procedure. Tell your lender about the financial hardship so that he alters the rates and makes repayment effortless for you. You can repay your home loans debt in this way too without taking out yet another mortgage loan.

Manage your finances in such a manner so that you can pay the mortgage installments on time. Eliminating your home loans debt can help you retain your homeownership rights and live within your means.

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What is your debt-to-income ratio and when is it important

If you’re in the market to take out a loan at an affordable rate, you must be aware of the two most important factors that are checked before giving you a loan. Yes, the numbers that are checked while giving you a loan are your credit score and your debt-to-income ratio, more popularly known as the DTI ratio. Are you aware of what a DTI ratio is and why it holds so much importance during a financial transaction? Read on to know more on this particular topic.

How is your DTI ratio calculated?

As the name suggests, your DTI ratio is nothing but the ratio of monthly income that you make in a month and the debt obligations that you’re supposed to pay in a particular month. The amount of debt will include mortgage debt, car loan debt, student loan debt, credit card debt and any form of other debt that you’re liable to repay. In order to calculate your DTI ratio, you have to add up all your monthly debt obligations and then divide it by the gross monthly income that you make in a month.

When is your DTI ratio checked?

Just as your lenders check your credit score before lending you a loan, they also check your DTI ratio that is your debt to income ratio. If you have a high debt-to-income ratio, this means that you have too many high interest debts in accordance with your monthly income. Therefore, this will imply that you’ll not be able to make the monthly loan payments on time as you may fall short of cash. This is the time when your lenders will charge you high interest rates on the loans. Thus, you must always calculate your DTI ratio before applying for a loan from a lender.

If you want to make sure that you grab the best loan in the market, you must work towards lowering your DTI ratio so that the lenders may be able to offer you a loan with an affordable interest rate. You can easily repay the loan without having to fall back on the other monthly obligations.

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The situation – US stocks as of now

As per recent reports, the US stocks tumbled with the beginning of September, where it is considered that it was the S&P 500’s worst September start in 50 years. It is not only S&P which went through a tumble, the other stocks too dropped. Though, the Federal Reserve Chairman Ben Bernanke did try to instill some amount of confidence, it failed to slow down the investor jitters. So, if you are thinking of investing in the stocks in order to pay off your debts, you should think twice.

US stock situation

The reports on the job market show it to be the weakest in a year. This renewed the fears that US may slip back into another phase of recession. The Treasury yields too fell and the price of gold rose as the investors piled onto investments; gold is seen to be less risky investment option in comparison to stocks.

It was seen that the Dow Jones industrial average fell by 172 points, or by 1.5 percent, which is 11,321. The Standard & the Poor’s 500 indexes fell 20 points, or that is by 1.6 percent, to 1,182. The NASDAQ composite index slipped by 39, or it means by 1.6 percent, which is to 2,507.

All of the 30 stocks in Dow fell by quite a few points. Only one of the stocks which is the Verizon Communications Inc. experienced positive advancement. For each of the stocks that experienced a rise, 11 fell against the New York Stock Exchange, where the volume was almost about 1.1 billion. 

In fact, after moving to and fro in between the small gains and losses for most of the session, stocks went on the highest downgrade after Bernanke gave his speech at Minneapolis. Majority of the investment stock traders had hoped to get far more insight on the plan of the central bank which is supposed to be brought up mainly in order to provide some support to the economy.

On the other hand, following the sharp decline in the stocks or rather the stock index futures, the stock exchanges with the likes of New York Stock Exchange and NYSE Amex Cash Markets have invoked Rule 48 as for the open, thereby lifting the requirement which may call for price indications that may be of some help for the determination of the floor price in the beginning so as to smoothen away the trade.

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Parameters to Be Considered For Getting Cheap Auto Insurance

There is hardly anyone out there who doesn't dream of buying a luxury car. When you buy anything, you make a huge investment and hence you must take care of that product by undertaking several maintenance activities. In order to provide protection to anything you buy, insurance policies can help. You dream of buying a new car, but prior to that confirm everything and fulfill all formalities to provide security to your sedan. Starting from cars for personal use to the giant sedans used for official purposes, several auto insurance policies are available for every category of automobile. However, if you desire to get cheap auto insurance deals, it might be difficult but of course not impossible.

Every car owner wants to avail maximum benefits at cheaper rates. To get cheap auto insurance, however, the insurance seekers must do a thorough research and survey the market well. In recent times, however, doing research has become quite easier because of the availability of the internet connection that enables the users stay connected to the entire world. There are several factors that influence the rate of the auto insurance that ultimately determines whether it is an expensive or cheap auto insurance deal. Thus, if you want to grab the best inexpensive insurance policies for your cars or giant sedans, it is important to consider the following factors:

The place where you live is an important factor. The ones who stay in rural locations are less likely to be engaged in any kind of accidents than those who stay in urban or city areas. Being at a lesser risk of involvement in any road mishap makes it easier for the individuals to get cheap auto insurance deals.

Violation of driving rules affects your insurance rates adversely. Speeding tickets, running red light, etc. supplement the rate of insurance. Thus, if you have a clean driving record, you can easily get the deals at cheaper rates.

The brand of your vehicle and the strength of the engine and other details of the car are also important for determining the rate of insurance.

Past accident claims also act as a primary factor that decides whether you are eligible to get cheap car insurance schemes

Your credit rating and occupation are also vital factors that are taken into account to determine your eligibility for the best cheap auto insurance deals with significant coverage level.

The author is an expert advisor for cheap auto insurance. He has gained immense appreciation from those who have received valuable advices from this cheap auto insurance expert advisor. Reading his articles makes people well aware of all the perspectives surrounding the concept of getting cheap auto insurance deals.

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