Credit Cards and Home Equity Loans – Read the Fine Print

Written by Charles Essmeier


Continued from page 1
print” issue that has been turning up recently isrepparttar prepayment penalty that is now being attached to up to half of all mortgages and home equity loans. The volatile nature of interest rates inrepparttar 141099 lending market has inspired many homeowners to repeatedly refinance their homes inrepparttar 141100 last few years. Lenders often hold a mortgage for only a few months beforerepparttar 141101 borrower finds a lower rate and refinances, paying offrepparttar 141102 original loan. In order to “protect”repparttar 141103 profits from lendingrepparttar 141104 money, up to half of all lenders are now requiring a substantial penalty ifrepparttar 141105 loan is paid off prior to a specified date. These fees can amount to several thousand dollars on a primary mortgage and several hundred dollars on a home equity loan. Most borrowers would not be pleased to go throughrepparttar 141106 process of refinancing their home, only to find out at closing that they owed a penalty of five thousand dollars. Instead, be sure to readrepparttar 141107 fine print in your mortgage or home equity loan documents before you sign them.

Asrepparttar 141108 lending and credit markets become more and more competitive, lenders are doing more and more to increase their profits. They are not necessarily doing so in obvious ways, however, so it is always in your best interests to read any document carefully before you sign. Your failure to do so could cost you quite a bit of money.

©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a site devoted to debt consolidation and credit counseling, and HomeEquityHelp.com, a site devoted to information regarding home equity loans.


Front Fees

Written by William Cate


Continued from page 1

Turnkey project offers, like finding a business lender, taking your company public, arranging stock support for your public company, finding wholesale buyers for your company's products, etc., are expensive undertakings. Both swindlers and professionals will want front fees. The difference is thatrepparttar professionals are willing to build a relationship with your company by doing consulting work for you. They operate onrepparttar 141082 start small and build creditability model. The swindlers will want you to pay them based solely on hype and knowing as little as possible about them. If you'll just look, it's easy to seerepparttar 141083 difference.

Let me offer an example of a professional's no front fee and front fee policy. I advise several Venture Capital (VC) firms about issues related to taking their clients public. Inrepparttar 141084 process, I've learned their funding selection criteria. If I get a startup Executive Summary from a trustworthy source that meets a VCs criteria, I'll requestrepparttar 141085 Business Plan. Ifrepparttar 141086 Business Plan is credible, I'll forward it torepparttar 141087 VC. My costs are five dollars for postage and a couple hours of my time. Mayberepparttar 141088 VC will fund one in ten of my referrals. However, ifrepparttar 141089 VC funds a referral, they will pay me twenty thousand times my costs. For me, it's a good bet.

Onrepparttar 141090 other handrepparttar 141091 costs of taking a client public are far more than five dollars. Unlessrepparttar 141092 client is willing to pay my costs as a front fee, I won't take them public. My middle road is to act as their paid advisor as they take their company public. My point is that professionals may be willing to offer no front fee services for help that costs them little time and money. They won't do so for high-ticket items. In that case, your option is to pay them as your consultant and dorepparttar 141093 work yourself or try to do it without outside advice.

The Front Fee Axiom is simple. Start with small payments for consulting advice. Ifrepparttar 141094 advice helps your company, agree to pay a retainer as long as it reduces your consulting costs. If you come to trustrepparttar 141095 professional, consider a turnkey offer or dorepparttar 141096 project yourself with their advice. NEVER pay a front fee to anyone whom you haven't met and can't do basic due diligence upon.

He has been the Managing Director of Beowulf Investments [http://home.earthlink.net/~beowulfinvestments/] since 1981 and is the Executive Director of the Global Village Investment Club [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]


    <Back to Page 1
 
ImproveHomeLife.com © 2005
Terms of Use