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 asrepparttar 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 atrepparttar 112253 showroom and more likely to get a better deal.

Consider these suggestions: Check publications at a library or bookshop, or onrepparttar 112254 Internet that discuss new car features and prices. These may provide information onrepparttar 112255 dealer’s costs for specific models and options. Shop around to getrepparttar 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 isrepparttar 112257 difference betweenrepparttar 112258 manufacturer’s suggested retail price (MSRP) andrepparttar 112259 invoice price. Becauserepparttar 112260 price is a factor inrepparttar 112261 dealer’s calculations regardless of whether you pay cash or finance your car — and also affects your monthly payments — negotiatingrepparttar 112262 price can save you money. Consider ordering your new car if you don’t see what you want onrepparttar 112263 dealer’s lot. This may involve a delay, but cars onrepparttar 112264 lot may have options you don’t want — and that can raiserepparttar 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: Discussrepparttar 112266 possibility of a trade-in only after you’ve negotiatedrepparttar 112267 best possible price for your new car and after you’ve researchedrepparttar 112268 value of your old car. Checkrepparttar 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 fromrepparttar 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 isrepparttar most common no down mortgage.

The positive aspect of this loan for a subpime borrower is thatrepparttar 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 protectsrepparttar 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 payingrepparttar 112254 same amount as if it was one loan and typically they are due atrepparttar 112255 same time.

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

The seller can typically pay 3% ofrepparttar 112258 purchase price ofrepparttar 112259 home towards closing costs with a conforming loan. With a sub-prime loanrepparttar 112260 seller can typically pay 6% ofrepparttar 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 ofrepparttar 112262 purchase price.

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

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

The seller can typically pay 3% ofrepparttar 112269 purchase price ofrepparttar 112270 home towards closing costs with a conforming loan. With a sub-prime loanrepparttar 112271 seller can typically pay 6% ofrepparttar 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 thatrepparttar 112273 loan’s interest rate is fixed forrepparttar 112274 first 2 to 3 years ofrepparttar 112275 loan, and then is fully adjustable forrepparttar 112276 remaining years ofrepparttar 112277 loan.

These loans have caps, meaning they can only fluctuate a fixed percentage per adjustment and have a max inrepparttar 112278 percentage that they can rise forrepparttar 112279 life ofrepparttar 112280 loan.

A quick example of this would be as follows. Lets say you have a 2/28 loan andrepparttar 112281 interest rate is 7% with caps of 3% and 6%. So withrepparttar 112282 first cap being 3% it can only rise a maximum amount of 3% per adjustment. The second cap of 6% is thatrepparttar 112283 interest rate can only rise by a maximum of 6% forrepparttar 112284 entire life ofrepparttar 112285 loan. Sorepparttar 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 atrepparttar 112287 end ofrepparttar 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% ofrepparttar 112289 purchase price ofrepparttar 112290 home towards closing costs with a conforming loan. With a sub-prime loanrepparttar 112291 seller can typically pay 6% ofrepparttar 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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