Auto Loans: Don’t Dig A Money Pit In Your Garage

Written by Joel Walsh

Chooserepparttar wrong auto loan and you might drastically increaserepparttar 150928 chances of defaulting and losing your car. Find out step-by-step how to avoid a money pit.

Car loans are certainly less costly than home mortgages, student loans, or other kinds of loans. So why do so many people end up defaulting and losing their cars? Find out these hidden dangers:

Biggest Hidden Car Loan Danger: The Inherent Money Pit

Unlike home mortgages, student loans or other big-ticket loans, car loans are inherently money pits. A house can build equity; higher education can increase earning potential; even jewelry can sometimes be re-sold for as much as was paid for it. If you borrow to buy one of those things, you may eventually get a return on investment. But every single car loses significant value and keeps losing it as time goes by.

Solution: spend as little on your car as possible.

Of course, in order to spend as little as possible overrepparttar 150929 life ofrepparttar 150930 vehicle, you need to get a well-made, fuel-efficient car, rather thanrepparttar 150931 one withrepparttar 150932 lowest price onrepparttar 150933 windshield.

But a pickup truck, SUV, sports car, or “luxury” model is a guaranteed money-loser. Don’t worry about what other people will think. Think about it: when wasrepparttar 150934 last time you saw an expensive automobile and thought, "I really like and respect whoever owns that!"

The best buy? Many economists actually recommend buying a used car that's a year or two old. That way you can actually benefit fromrepparttar 150935 fact that cars only drop in value. Even a car that’s just six months old may offer you a substantial savings. Just have it inspected thoroughly so you don't lose what you've saved on maintenance payments.

Hidden Car Loans Danger: Dangerously High Monthly Payments

Unfortunately, most people never figure outrepparttar 150936 total cost before signing onrepparttar 150937 dotted line. They end up staying up late at night trying to figure out how to make ends meet. They live in smaller houses. They skip going out at night. They don’t go on vacation.

All that sacrifice to have a brand-new SUV inrepparttar 150938 driveway!

Take a hard look at your finances, and figure out how much you can pay total each month for your car. Be sure to take into account insurance, tax, maintenance, and fuel. Usually, when people actually do calculaterepparttar 150939 total monthly cost ofrepparttar 150940 car they’re considering buying, they’re amazed by how high it is.

Have you considered a hybrid adjustable mortgage?

Written by Syd Johnson

If you’re not sure if you should sign up for an adjustable rate mortgage (ARM) or a fixed rate mortgage, you’re not alone. It is very easy to get excited when thinking about your new home, and then get feel a bit deflated when it is time to start thinking about financing.

Part ofrepparttar challenge for any home buyer is to reconcilerepparttar 150849 fact thatrepparttar 150850 introductory rates on adjustable rate mortgages can be so low. In fact, they are often lower thanrepparttar 150851 market rate, and considerably lower thanrepparttar 150852 rates on fixed rate mortgages. Now, you can get an ARM and some ofrepparttar 150853 benefits of a fixed rate loan withrepparttar 150854 hybrid adjustable rate mortgage.

A hybrid ARM is one whererepparttar 150855 rate is locked in forrepparttar 150856 first few years ofrepparttar 150857 loan and then will go back to market rate atrepparttar 150858 end ofrepparttar 150859 lock-in period. The lock in period is quoted up front and written intorepparttar 150860 adjustable rate mortgage contract. This period can vary from five years on up. Depending on your credit history,repparttar 150861 amount ofrepparttar 150862 loan, and your experience with your mortgage lender, you can negotiate lock in term as high as eight or eleven years.

This type of loan is ideal for anyone who plans to stay in their home forrepparttar 150863 first few years and then move to another place. Couples, young home owners, first time buyers and anyone who is upwardly mobile. The average American spends about nine years in their first home. If you fit into this profile, you can get a hybrid adjustable rate mortgage, get a fixed rate forrepparttar 150864 first five to ten years and then sellrepparttar 150865 home beforerepparttar 150866 rate starts to fluctuate again.

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