Friday, December 4th, 2009
Mortgage refinancing is a process that involves taking out a new mortgage loan to supplant an existing one. Borrowers typically undergo refinancing for three main reasons:
- Mortgage rates have fallen
- They wish to change their mortgage type
- They want to reduce the risk of their home loan
Currently, many borrowers are choosing to refi into 15- year loans as interest rates are at extremely low levels. Last week, the national average for the 15-year fixed was reported at 4.29%, the lowest on record according to Freddie Mac. Many of the same costs and procedures that are typically undergone with a first mortgage apply when obtaining a refi. Eligibility rules and criteria such as a favorable credit rating, stable income and a low debt-to-income ratio are pertinent.
Closing costs and related fees are definitely important things to keep in mind when deciding whether to refinance. A typical refi will cost somewhere around 4-6% of the loan amount with much of the expense consisting of closing costs. To actually benefit from refinancing, one must stay in his/her house long enough to reach the “break even” point. This is the point where the money that you save in monthly interest payments covers the total upfront costs of your refi. The larger the spread is between your refinanced rate and your existing rate, the shorter your break-even point. Therefore, it is usually not a good idea to refinance if:
- You have a low balance on your current mortgage
- The value of your home has gone down
- If you have already used up a substantial amount of equity in your home
It is generally advised not to refinance if in any of the above situations because the money that you’ll will save via monthly payments typically won’t make up for the total cost of the refi.
As with any mortgage option, when looking at refinancing, be sure to meet with a mortgage professional to determine your options before making a final decision.
Posted in Home Loan, Loan | No Comments »
Tuesday, January 6th, 2009
Nowadays, small business merchant accounts come with a lot of added features and extra benefits and that’s why more and more people are opening it. Small business merchant account enables your business to accept credit cards from your customers and from anywhere. Nowadays, internet has made so many things possible. If you want to expand the size of your business, your customers should get more options and facilities from you when they are doing any purchase. You want to keep them as regular customers. With the help of small business merchant account, you will be able to give more payment options to your customers.
Credit cards have made shopping easier. If you have a small business merchant account, your customers will get more flexibility from you and pay for the items with a credit or debit card. If you have this kind of account, you should be able to get payments from your customers in different ways like echecks or by online ACH authorization.
In order to expand your business, you must have a small business merchant account and accept the major credit cards like MasterCard, VISA, American Express, and Discover cards. Your sales potential will keep getting better and you will have more customers to do business with. Once the customer has decided to purchase an item from you, either he can make payments by echeck or ACH or by credit card or debit card. You will get the money deposited into your small business merchant account within two to three business days if the payment is done by credit or debit card. When the customer swiped the credit card, money earned that day will go to your business checking account. The monthly statements at the end of month make tracking sales volume and deposits into your account easier. The credit card terminals or software for processing payments can be purchased outright or leased.
There are other advantages of opening a small business merchant account. You can open up future capital opportunities for your business and there is no need of going through the complex loan application process. You may qualify for a lot of advances from a bank based on the number of the credit card receipts from month to month. This way you have more access to fast cash that can be used for pressing needs. The buying power of your business will go up and this will definitely help in the expansion and growth of your business.
Posted in Finance, Loan, Small Business | 2 Comments »