Borrowers have options to help save money on a mortgage. You may have heard about points when discussing mortgage loans. Many people are confused about the topic but buying points can actually lower your interest rate throughout the course of your loan. Buying points isn’t realistic for everyone and you should weigh your options before making a decision.

What Are Mortgage Points?

Buying points on a mortgage means you are paying upfront a percentage of the loan at the time of closing. For those who choose to buy points, the interest rate of the loan is reduced. With the lowered rate, the amount of the monthly mortgage payment is less for the borrower. The more points you buy, the lower rates and payments become.

Points are based on the amount of the loan you are seeking and not the sales price of the home you are buying. For each point you purchase, it equals 1% of the loan amount. For instance, if the home you are looking to buy costs $300,000, the amount of each point would be $3000.  For each point purchased, the interest rate will be reduced by a quarter of the percentage point in most scenarios. However, you should note that point amounts will be different amount lenders and be influenced by the bond market. Generally, consumers will pay for half of a point up to 4 or 5 points towards their mortgage.

Making a Decision

There must be a pro and con list devised to decide whether buying points makes sense for you. If you know you are going to be in your home for a long time, buying points makes sense because you will end up saving a lot of cash over the long haul. If you plan to sell or refinance in 2-3 years, buying points has no benefits for you.

Is It Affordable?

Your home purchase may be the biggest investment you make in your lifetime and new homebuyers will have a lot of other expenses to consider outside of mortgage points. From the initial down payment to the costs for moving, it may not be financial reasonable to put out more money towards point buying. You’ll need to tally how much your expenses for closing and moving will cost before making a decision to buy points upfront.

One option that many people turn to when severe debt problems strike is to ignore it, this way they do not have too concern themselves and worry about what may happen if they do not resolve the situation.

Of course unplugging the phone, nailing up the letterbox, and never answering your door may stop you receiving news that you do not wish to hear, but in the end someone will come to your door you cannot ignore, the bailiffs.

Ignoring severe debt problems is not the way to handle an inability to pay what you owe, there are other solutions, but the first thing you will need to do is make contact with someone that is able to guide and assist you in finding a debt solution to suit your exact situation.

There is not one single easy to swallow pill for resolving debt problems, there are several ways of helping people to deal with the situation, each of which needs to be specifically tailored to a person’s particular problems.

Many people believe, incorrectly, that “ going broke” and declaring bankruptcy is the only way to clear your debts if you do not have the cash, this is in fact is the last option, and there are several other ways of dealing with the clearance of severe debt.

One way is simply to find a debt counsellor who can take a look at all of your debts and monthly spending, as well as your income, and come up with a debt solution plan that will reduce the amount of money that you spend, while slowly clearing the debts that you owe.

This is not just a matter of juggling some figures around for telling you to spend less on the weekly grocery bill. Debt counsellors can contact the people that you owe money too, and negotiate with them on your behalf to lower the amount of the payments you need to make each month and possibly to suspend the ever growing interest so that you do not get any further into debt.

By using their professional skills as negotiators on your behalf they can often reduce the overall amount that you owe, stop the interest piling up each month, and work out a viable plan that will allow you to pay off what you owe at a rate you can afford, while also keeping the credit card companies, car finance debt collectors and everyone else away from your front door.

Once you have agreed terms with the companies via a debt counsellor you will be able to plug in the phone, un-nail your letterbox and get on with your life without having to endure the stress of severe debt problems.

With tough times comes tough choose and many consumers are forgoing the protection of life insurance because they feel they can’t afford it. Some are looking for the cheapest deals on the market without considering the realities of what happens when something goes wrong. For some, the process of going through a medical exam to get an insurance policy is a hard pill to swallow. Medical exams may actually prevent someone from getting a decent premium on a policy.

Is It Worth It?

Many insurance companies are advertising no-exam policies and are attracting a lot of business because of it. These agencies promise that a consumer only needs to answer a few basic questions before coverage can begin. There are no doctors, no tests, no exams required for the application process. While the policies may be legally valid, the fact that no-exam insurance policies will cost you remains true.

Typically insurance companies require a medical exam of the individual so they can gauge their risk. Since an applicant is only answering some questions and the agency has to rely on their word, premium costs go up because the risks go up.

Finding Quotes

If you are relatively young and in excellent health, you can find life insurance policies that do not require medical exams without much of a problem. The key to finding the right policy is to read the terms and conditions provided. You certainly do not want to pay for a policy that does not meet your needs.

Research not only the quotes you are getting from companies but have a look at the companies providing the quotes. Make sure they are a reputable agency with proper licensing. After narrowing down a few select companies, make sure you are looking at all of the information being provided. Ensure that the type of coverage being offered is what you need. If not, keep looking for the right policy at the right price. Never take the cheapest policy either. In many cases, what you pay for is what you get.

Good As a Supplement

If you have pre-existing medical conditions, you may want to find proper insurance and use the no-exam policies as a supplement to what you already have. Depending on your specific medical history, you may be limited in some choices but definitely consider all options before accepting and paying for coverage

Many people opt to hire a professional moving company to help assist with the big furniture, the heavy lifting, and the transportation. However, consumers who are desperately in a hurry to get the job done are often the target of non-upstanding companies who promise one thing and deliver nothing.

Here are some ways to help prevent being the victim of a moving scam:

Go Beyond the Phone Book

There is probably a lot of listings in a local phone book for moving companies but the phone book won’t give you very much information about the reliability or the pricing for a moving company. Use the internet to get moving tips and read other consumer reviews if there are any available and contact the Better Business Bureau in your area to get information about any complaints against the company. This also goes for companies that offer storage units.

Request Estimates from Several Companies

While it may be a bit of a pain and time-consuming task, it would best to get an estimate of moving costs from at least three different companies. Compare the prices from each. If any appear to be similar, you may have to ask for some references to make the final decision. It is also important that you do not take the lowest price because of the low price. Make sure the estimate is complete and includes all of the services you will require during the move.

Get it In Writing

After choosing a company, do not do another thing without a contract that spells out all of the details of the move. Make certain the charges match the estimate and that no hidden costs have been slipped in while you were not looking. Especially keep your eyes open for fees regarding normal moving materials such as packing supplies, protective coverings, and the like. They should have all been included in the original price. A contract is also important because it provides proof of the move. Otherwise, a moving truck could drive away with your stuff ad you may have a hard time proving what happened.

Inquire About Damage

Sometimes the most professional movers can break some of your items. What matters most is the claims process that allows you to get back money for the damages. Before approving any contract, make sure you understand how their claims process works.

Don’t Pay Everything In Advance

Some moving companies will require a down payment in order to initiate the moving process. If a mover requests the entire amount, or at least a large portion of the cost, upfront before the move has been completed, it should throw a big red flag.

If you’ve bought Apple’s most recent piece of design technology, aka the iPad, you’re more than likely a bit of a geek, but also a wily investor – which means you’ll be wanting to know how you can make your shiny new appliance work it’s magic and return the investment. With over 200,000 apps on offer there’s a definite need to sort the wheat from the chaff, so here’s our guide to the best iPad Apps that are guaranteed to help you invest wisely.

Financial Times
Free to download, but subscription required to actually read content, the FT has developed a special edition app, which has been optimised specifically for the iPad. Perfect for downloading at home and reading on the move, content includes video, news, comment and analysis, whilst users can also view portfolios, view stock and compare market trends.

Mint
The very popular Mint App is free and appeals to the average man on the street with its intelligent ability to help users keep track of accounts and budgets on the move. Tied into an account via the standard website the Mint App allows users to draw together up-to-the-minute information on all of their accounts, credit cards and investments.

Bloomberg Mobile

Lauded by those in the know, the Bloomberg App allows real-time market analysis, including all the latest news, stock quotes and company information, chart and trend analysis, and interactive graphs and charts.

Daily Finance

Bringing together information from a variety of market sources, the free Daily Finance App provides a  pool of information including news, advice and tools for people who actively manage their own portfolios – meaning you can be in touch with everything from market trends, top rate offshore savings accounts and investment quotes 24/7.

E*Trade

Extending its online trading arm into the mobile environment, the E*Trade App allows users to view, analyse and actually move stock. Key functionality includes market news, account management, live watch lists and portfolios – all synchronized with an online account in real time.

These mini-payments can actually help you reduce your credit card debts and satisfy other kind of financial obligations faster than if you stick with only once-monthly payments. Provided your creditor accepts smaller, more frequent payments you can actually knock out balances faster.

How It Works
Taking a look at credit card debts, you should in theory make more than the minimum monthly payment each time or it will take a decade to erase debt. If you are required to make a $35 minimum monthly payment, try budgeting to make four $35 payments each month. Contact your creditor and ask if they accept smaller payments. Set up an automated payment through your bank or through the credit card company’s website. By paying $35 a week, you are actually making a $140 monthly payment without having to come up with the lump sum.

These mini-payments also help you save money because by paying more frequently, you are cutting down on the accumulating interest fees. If you only pay once a month, you have to pay for the entire amount of interest calculated during the billing period. Saving on interest fees, you pay down your balance faster as more money goes towards the principle balance.

Beyond Credit Cards
Cell phone bills, utilities, and other living expenses are always on the increase. If you are only getting a paycheck twice a month, it can be very hard to balance a full month’s worth of expenses at one time By allocating smaller amounts through the week, you can better manage the cash you have and satisfy all of your obligations each month.

If you are not yet using mini-payments to handle your bills, give it a try. Reconstruct your budget and divide monthly payments by 4 to find out how much it would cost you a week to meet your bill obligations. You can also divide by 2 to figure out your bi-weekly payments in relation to your paychecks.

Keep Budgeting
It can be hard to break old habits or institute new ones but if you work hard at making a reasonable budget and stick to it, it will soon be part of your daily life. Once you begin to see results and feel confident you can pay off your monthly obligations and still have money leftover, it makes sense to stick to what is working.

Appliances

Almond and avocado appliances are not only out of date, they are inefficient at best. It may seem odd to spend hundreds of dollars on a new appliance but getting up to date energy efficient appliances with the Energy Star rating can save money and the environment in the long run.

According to the Energy Star site, “Energy Star qualified refrigerators are 20% more energy efficient than the minimum federal standard”. In terms of cash flow, a new fridge will save you money on your electrical bill. Replacing a 1980’s refrigerator with an up to date model with an Energy Star rating can save around $100 per year on the average utility bill.

It is not just refrigerators. Think also about freezers, dishwashers, washers and dryers. New efficient models can save consumers hundreds of dollars a year and using less electricity means reducing the impact on the environment.

Simple Solutions

Investing in big ticket items, such as new appliances, may not be in the future for some home owners. Consumers can continue to reduce on their monthly bill by doing little things to save money.

• Programmable thermostats are an easy and simple way to reduce wasted energy in the home. Having a thermostat controlled by timers can save money by not heating the house when it is empty or while home owners are at work, and kept cool while people are sleeping.

• Keep things cool with ceiling fans and opening windows in the evening. Ceiling fans keep air moving and gives the feeling of lowered temperatures. It has been estimated that air circulation can reduce the AC temperature setting by 2 degrees. This may not seem like much, but a two degree air conditioning setting will show big savings on the utility bill.

• Keep the water heater warm with a hot water jacket. Hot water heaters and hot water use is a large part of the utility bill. Something as simple as a $10 water jacket can reduce the amount of electricity used to keep the water warm.

• Most people would flock to a 75% off sale. Think of that when replacing light bulbs. Compact fluorescent bulbs use 75% less energy than the standard incandescent bulb and can last up to 10 times longer. Be aware however, that the initial price is more expensive so shopping around is essential.

Energy almost oozes out of peoples homes whether they realize it or not. With a little effort energy can be saved and along with it some hard-earned cash can stay in your pocket.

The following will illustrate the credit card processing solutions for different types of businesses:

E-Commerce

If you sell any type of good or service over the internet, it is imperative that you accept credit cards. If you do not accept credit cards on your website, you will not be able to grow your business, or the business could fail. The e-commerce world is ultra-competitive, so you need to do everything you can to make payments convenient for your customers.

There are two types of internet merchant accounts: virtual terminal and weblink gateway. The virtual terminal is a good fit for businesses that have low volumes of sales on a daily basis. An administrator on the business’s side will manually verify credit card information and process orders that have come in through the website. The weblink gateway is more suited to business that have more financial resources and higher volumes of sales every day. Credit card information from each online order is automatically verified, thus making the fulfillment process shorter.

E-commerce businesses must deal with fraud related to credit cards, and this sector has been hit hard with chargebacks. Internet merchant account fees are typically higher than other types of accounts, since the provider is taking a higher risk on the possibility of fraud.

Brick and Mortar Businesses

Any type of physically located business most likely performs credit card processing. If they don’t, they are stunting their own growth. You could easily increase your total revenue by 20% by accepting credit cards. It’s not that you will see an increase in quantity of sales, but you will see an increase in the amount of revenue per sale. Studies have shown that customers spend more per purchase when using a credit card. Personally, I used a company called North American Bancard for my retail business’s credit card processing. The revenue per sale increased by about 30% when I started accepting credit cards in the mid-1990’s. I would definitely recommend this company for providing retail merchant accounts.

Contractors and Outside-Sales-Oriented Businesses

Wireless merchant accounts are the latest technological advancement in the credit card processing industry. These types of accounts process credit cards with a terminal that swipes credit cards and processes the financial information through a wireless connection. It creates a competitive advantage for people who deliver their goods and services to customers’ homes or businesses. Instead of invoicing, they accept payment on the spot, and the transaction is done. This also can improve your cash flow, since the accounts receivable turn over should, in theory, decrease, allowing more cash to flow into your bank account.

Conclusion

Hopefully you learned something new from this post. And if you did, I am happy to say that I did my job. Just remember to do your research and ask a potential account provider many, many questions.

Are You Eligible for a Credit Union?

In recent years, credit union membership has become available to more people but not everyone will be eligible for credit unions. There are credit unions available to employees of a particular business; credit unions for people who live, work or worship in a certain geographic area, and credit unions available to people working in certain industries. Check the credit unions in your neighborhood first to see if you meet eligibility requirements, and if not – look for national credit unions available online if you don’t mind online banking.

Other ways to become eligible for a credit union membership is to become a member of an organization or group in which membership makes you eligible for the credit union.

Credit Unions are Nonprofit

One of the reasons most people will benefit from switching to a credit union from a bank is because credit unions are nonprofit organizations. This means that they aren’t paying federal taxes like banks do – and they can pass on those savings to their members in the form of reduced account fees and better interest rates.

Account Holders are Partial Owners at Credit Unions

Another difference and benefit credit unions have over banks is that when you open an account with a credit union, you become a partial owner. You can vote on Board of Directors, and you will receive a share of profits generated from their operations. Loans and fees earned by a credit union is distributed among all of the owners – which means every once in awhile you’ll see a credit in your checking or savings account that represents your percentage of ownership.

Compare the Account Features

Take a look at the features of your current checking and/or savings accounts and see how they compare to what the credit union you’re considering offers. Will you miss any features your bank offers that isn’t provided by the credit union? Most standard banking services are also available at credit unions, like debit cards, transferring funds between accounts, direct deposits and online bill pay.

If you decide the credit union offers the features you need, you should open an account and make the switch!

A home warranty is essentially a warranty that protects the homeowner in the event a major home system or appliance needs to be repaired or replaced. This may include heating, cooling, plumbing and electric systems as well as major appliances such as refrigerator, stove, washer or dryer. When a home warranty plan is purchased, there is a yearly premium that must be paid, usually between $200-$500 which covers the maintenance, repair and replacement of items covered in the contract. This can come in handy when buying a home and in some cases is even included with the seller or real estate agent covering the initial cost. Home warranties are not just for new home owners, in fact some families choose to have a home warranty plan in place to make things easier and save time when an item breaks or is in need of repair.

If you are unfamiliar with home warranty plans and wonder how they work, it is really very simple. After purchasing your plan you basically call the service provider whenever any item covered under the contract needs attention. This may be an air conditioner that no longer works or a hot water heater that goes on the brink, as long as these items are covered under the warranty. After receiving your call, the service provider will then contact the appropriate technician with whom they have an established relationship. The technician will contact you, the home owner and make arrangements to come to your home for the needed repairs. As long as the repair or action needed is covered under your warranty, the only cost for the home owner will be a service fee which is generally less than $100.

A word of caution for individuals considering a home warranty plan. Each company as well as individual contracts have certain requirements and exclusions, therefore it is important to read the fine print and fully understand exactly what is covered before agreeing to the contract. A common complaint from home owners is that despite having a home warranty plan, they find many repairs are not included, often making the contract less than valuable in the event of a costly repair or replacement. The right circumstances covered by the right plan may render a home warranty plan worth the money invested in the yearly premium but it is important to know which circumstances are covered before moving forward.