What to Consider Before Applying For a LoanWritten by John Mussi
Here are some useful tips on what to consider before applying for a loan. If you need money to pay bills or make home improvements, and think answer is in refinancing, a second mortgage, or a home equity loan, consider your options carefully. If you can't make required payments, you could lose your home as well as equity you've built up. That's why it's important not to let anyone talk you into using your home to borrow money you may not be able to afford to pay back. Contact several lenders - including banks, savings and loans and mortgage companies. Ask each lender about best loan you would qualify for then compare following: The annual percentage rate (APR): The APR is single most important thing to compare when you shop for a loan. It takes into account not only interest rate, mortgage broker fees, and certain other credit charges lender requires borrower to pay, expressed as a yearly rate. The term of loan: How many years will you make payments on loan? If you're getting a home equity loan that consolidates credit card debt and other shorter-term loans, remember that new loan may require you to make payments for a longer time.
| | How to Plan to SaveWritten by John Mussi
You have to know how to plan to save. The best way is by defining your goals. To end up where you want to be, you'll need direction, a financial plan. To get started on your plan, you'll need to ask yourself what are things you want to save and invest for. Here are some possibilities: A home A car An education A comfortable retirement Your children Medical or other emergencies Periods of unemployment Make your own list and then think about which goals are most important to you. List your most important goals first. Decide how many years you have to meet each specific goal, because when you save or invest you'll need to find a savings or investment option that fits your time frame for meeting each goal. The next step is to make a financial plan by figuring out your finances. Sit down and take an honest look at your entire financial situation. You can never take a journey without knowing where you're starting from, and a journey to financial security is no different.
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