Auto Loans: Donít Dig A Money Pit In Your Garage

Written by Joel Walsh


Continued from page 1

How Much Car Debt Can You Afford?

1) Make a list of your average monthly non-car expenses, and subtract them from your earnings. ____your monthly after-income-tax income -___any other taxes -___housing (including any fees and property taxes, and utilities) -___food -___health insurance or HMO -___life insurance -___debt payments -___401 (k), IRA, or other long-term savings -___short-term savings -___telephone, cellular phone, cable, internet, etc. -___entertainment and fun stuff (be honest!) -___cost of yearly vacation(s) divided by 12 -___other expenses

= ____what you can spend on a car

2) Subtract your monthly car-related expenses fromrepparttar amount you have left over from your other expenses.

___What you can spend on a car (from above) -___Amount youíre spending per month on gas (raise or lower this figure depending on whether you are getting a car with higher or lower gas mileage). -___Monthly maintenance (remember: your new car wonít stay new long, so maintenance will be an issue). -___Monthly insurance (remember that for a new car, your insurance premiums may go up). -___Tax. = ____ Maximum monthly loan payment.

Now plugrepparttar 150928 number above into a vehicle loan rate calculator to figure out big of a car loan, and how much interest you can afford.

Final Hidden Auto Loan Danger: Unnecessarily High Rates

If you simply takerepparttar 150929 first loanrepparttar 150930 dealer offers you, you are probably paying too much. Do some comparison shopping onrepparttar 150931 internet, and bring a list ofrepparttar 150932 best loans with you when you negotiate loan terms withrepparttar 150933 dealer.

Donít letrepparttar 150934 dealer cheat you by shiftingrepparttar 150935 cost fromrepparttar 150936 car loan torepparttar 150937 car price torepparttar 150938 deal on your trade-in. Make sure you get a good deal overall.

Congratulations! You now are far better prepared to stay out of an auto loan money pit thanrepparttar 150939 vast majority of car buyers. Now youíre ready to go shopping for a loan.

Joel Walsh is a regular contributor to cars-auto-loans.com. Read his other articles, with even more information on getting the best car loan: http://cars-auto-loans.com [Web publication requirement: use "car loan" as the anchor text/visible link text for the URL: http://cars-auto-loans.com]


Have you considered a hybrid adjustable mortgage?

Written by Syd Johnson


Continued from page 1

If you were to get a fixed 30-year mortgage atrepparttar same that youíre consideringrepparttar 150849 hybrid, it is unlikely that you would get a fixed rate that matchesrepparttar 150850 teaser rate onrepparttar 150851 ARMs inrepparttar 150852 market. To take full advantage of this type of mortgage, you must fully understand thatrepparttar 150853 rate will revert torepparttar 150854 ARM levels at some point.

This means that you can count on a rapid and drastic increase in your monthly payment oncerepparttar 150855 loan goes back to a full adjustable rate basis. If you plan to stay inrepparttar 150856 home for a very long time, your savings fromrepparttar 150857 locked in period will probably be wiped out whenrepparttar 150858 loan reverts to its adjustable status. You can consider a refinance, but that will also take some money out of your pocket. If you decide that you donít want to sellrepparttar 150859 property, keep in mind that overall, your loan will still be an excellent choice for your financial situation.

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