Finance: Useful Tips On Buying A New Or Used Car

Useful Tips On Buying A New Or Used Car

Written by John Mussi

Buying A New Car: A new car is second only to a home as repparttar

most expensive purchase many consumers make. That’s why it’s important to know how to make a smart deal. Think about what car model and options you want and how much you’re willing to spend. Do some research. You’ll be less likely to feel pressured into making a hasty or expensive decision at repparttar 112253

showroom and more likely to get a better deal.

Consider these suggestions: Check publications at a library or bookshop, or on repparttar 112254 Internet that discuss new car features and prices. These may provide information on repparttar 112255 dealer’s costs for specific models and options. Shop around to get repparttar 112256 best possible price by comparing models and prices in ads and at dealer showrooms. You also may want to contact car-buying services and broker-buying services to make comparisons. Plan to negotiate on price. Dealers may be willing to bargain on their profit margin. Usually, this is repparttar 112257 difference between repparttar 112258 manufacturer’s suggested retail price (MSRP) and repparttar 112259 invoice price. Because repparttar 112260 price is a factor in repparttar 112261 dealer’s calculations regardless of whether you pay cash or finance your car — and also affects your monthly payments — negotiating repparttar 112262 price can save you money. Consider ordering your new car if you don’t see what you want on repparttar 112263 dealer’s lot. This may involve a delay, but cars on repparttar 112264 lot may have options you don’t want — and that can raise repparttar 112265 price. However, dealers often want to sell their current inventory quickly, so you may be able to negotiate a good deal if an in-stock car meets your needs. Trading in Your Old Car: Discuss repparttar 112266 possibility of a trade-in only after you’ve negotiated repparttar 112267 best possible price for your new car and after you’ve researched repparttar 112268 value of your old car. Check repparttar 112269 library for reference books or magazines that can tell you how much it is worth. This information may help you get a better price from repparttar 112270 dealer. Though it may take longer to sell your car yourself, you generally will get more money than if you trade it in.

What Type Of Zero Down Mortgage Is Best For You?

Written by Matthew Allen

Below are 9 different types of zero down mortgage that you can qualify for. Each one has positive and negative aspects. Read and learn about which zero down mortgage will suit you best.

80/20: The 80/20 loan is simply an 80% first mortgage with a 20% second mortgage for a total of 100% financing. In other words you are getting two loans. This is repparttar most common no down mortgage.

The positive aspect of this loan for a subpime borrower is that repparttar 112252 interest is typically much lower than a 100% one loan.

This zero down mortgage is a beneficial loan for conforming borrowers because it will help you avoid mortgage insurance. Mortgage insurance is an insurance policy that you pay and that is of no benefit to you. It simply protects repparttar 112253 lender in case of default/foreclosure. Sub-prime loans almost never have mortgage insurance, but be sure to ask.

The negative side of this loan is that you will pay two different sets of closing costs, which could tack on an extra couple of thousand dollars.

Also many people are afraid of having to make two different payments. Have no fear. You are more or less paying repparttar 112254 same amount as if it was one loan and typically they are due at repparttar 112255 same time.

One final thing to think about is that repparttar 112256 second mortgage interest rate will almost always be significantly higher than repparttar 112257 first mortgages interest rate.

The seller can typically pay 3% of repparttar 112258 purchase price of repparttar 112259 home towards closing costs with a conforming loan. With a sub-prime loan repparttar 112260 seller can typically pay 6% of repparttar 112261 purchase price towards closing costs.

100% One Loan: This type of zero down mortgage is pretty straight forward. It is simply one loan for 100% financing of repparttar 112262 purchase price.

Unfortunately sub-prime borrowers will typically pay a much higher interest rate than they would with repparttar 112263 80/20 home loan.

For conforming borrowers repparttar 112264 down side is that you will pay mortgage insurance which can range from .55% to 1.94% of repparttar 112265 loan amount. The benefit for conforming borrowers is that repparttar 112266 interest rate will be lower over all since you will not have a second mortgage. Plus once you have 20% equity in repparttar 112267 home you can get repparttar 112268 mortgage insurance taken off.

The seller can typically pay 3% of repparttar 112269 purchase price of repparttar 112270 home towards closing costs with a conforming loan. With a sub-prime loan repparttar 112271 seller can typically pay 6% of repparttar 112272 purchase price towards closing costs.

2/28 or 3/27: This loan is a very common zero down mortgage for sub-prime borrowers but conforming borrowers can take advantage of this loan as well. This loan is an Adjustable Rate Mortgage also known as an ARM. What this means is that repparttar 112273 loan’s interest rate is fixed for repparttar 112274 first 2 to 3 years of repparttar 112275 loan, and then is fully adjustable for repparttar 112276 remaining years of repparttar 112277 loan.

These loans have caps, meaning they can only fluctuate a fixed percentage per adjustment and have a max in repparttar 112278 percentage that they can rise for repparttar 112279 life of repparttar 112280 loan.

A quick example of this would be as follows. Lets say you have a 2/28 loan and repparttar 112281 interest rate is 7% with caps of 3% and 6%. So with repparttar 112282 first cap being 3% it can only rise a maximum amount of 3% per adjustment. The second cap of 6% is that repparttar 112283 interest rate can only rise by a maximum of 6% for repparttar 112284 entire life of repparttar 112285 loan. So repparttar 112286 worse case scenario is that your interest rate would rise from 7% to 13%. But remember it can also fall as well.

I refer to these types of zero down mortgage as band-aid loans. It gets you into a house and at repparttar 112287 end of repparttar 112288 2 or 3 year period you can refinance. Hopefully at this time you are now a conforming borrower and you will qualify for a fixed home loan at a lower interest rate.

The seller can typically pay 3% of repparttar 112289 purchase price of repparttar 112290 home towards closing costs with a conforming loan. With a sub-prime loan repparttar 112291 seller can typically pay 6% of repparttar 112292 purchase price towards closing costs.

VA Loan: The VA is 100% financing and has no mortgage insurance. Unfortunately you will need to be a veteran to qualify for this zero down mortgage.

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