E-loan, Lending Tree, and other online mortgage shopping sites are great, but be careful! They are national mortgage shopping sites. That might sound nice because you get mortgage lenders from across the nation competing for your business, but be careful – any lender other than a mortgage lender who is familiar with lending in your home-state will not be familiar with local practices, and that could cost you in many ways. It might not only cost you that lower interest rate, but depending on your other circumstances, it could actually cause you miss that window of opportunity.
You can categorize indices broadly as either average or spot rate. Typically, if your mortgage uses an average index, you’ll find that your payments are slightly higher but shift much more slowly. With a spot index, the changes are much more volatile, and subsequently, so are your payments, despite them being a little lower.
If you can’t get P&L’s before you sign a contract, make your purchase contingent on receiving these items within a certain reasonable time frame and that the contract is conditional on your review of the financials and them being deemed as “acceptable” to you. YOU decide the definition of “acceptable” .
If you owe money on multiple cards, it will take a while to wipe out all the debt. It’s hard to see the horizon and stay motivated when you have years of credit card payments ahead of you. Give yourself a boost by paying off one card. Target the card with the lowest balance and put as much money into your payments as you can afford until you’ve cleared the balance.
Offset products also offer tax benefits to borrowers. With a traditional savings account, you’d have to pay tax on any interest you earn. Offset mortgages, however, work a bit differently. Since you only pay interest on the difference between your mortgage amount and your savings offset, the savings that you put in is essentially earning a return set at the mortgage rate. There’s no tax to pay on this benefit, so offset mortgages effectively give borrowers a tax-free return on their cash. This can have a real impact for higher-rate taxpayers.
You might’ve seen that guy on the treadmill next to you that looks like he has a multi-colored shirt on it. I hate to break it to you, but that’s sweat!
The solvency ratios are meant to show us whether the company can sustain itself long–term. In other words – whether it is solvent, or not. And even before then – they show us whether the company is carrying too much debt. And that is a red flag you do not want to miss! One of the hardest things to watch is when an otherwise good company struggles because of excessive debt.