1 Top 5 Best Insurance Companies

When setting financial goals, we often include building a healthy savings fund and starting a lifefree of debt. The more ambitious among us would look for ways to invest and grow their money. For those who are more cautious and would like a safety net in case things do not go as planned, getting insured is a definite must before they can consider themselves financially stable.

Insurance protects you from unexpected expenses and emergencies, but not everyone is comfortable with the idea of applying for one. Some of them even think insurance agents are merely out to get them for a commission.

But not all insurance providers are there to take advantage of you or your money. There are actually some good and reliable insurance companies out there. It is just a matter of finding a provider that could meet your specific needs.

MSN has recently released a list of the best insurance companies based on customer and claims satisfaction, value for money, along with recommendations and renewal rates. The insurance providers that have won the favor of loyal customers so far are as follows:

1. USAA
USAA, which caters exclusively to military men and their families, is an auto and home insurance provider with mainly positive reviews. In the survey conducted by MSN, customers reported a smooth claims process, the availability of various plans and discounts, and good policies with no sudden rate hikes. The company also offers affordable home insurance packages. 

2. Erie Insurance Group

Erie Insurance Group provides attractive auto insurance rates locked in within a year even if you make a claim within the said period. The provider has won the loyalty of long-time customers for reasons such as rates do not increase after your first accident, and deductibles with your plan can be reduced if you register no accidents or moving violations. Their car insurance package even covers pets injured in a car crash

3. Amica Mutual

One of the oldest auto insurance providers in the US, Amica Mutual is backed by a history of delivering outstanding car insurance policies to its customers. Being a mutual insurance company, Amica is owned by policy holders. It offers low auto insurance rates and impressive customer service. It is, in fact, one of the few large insurance companies that consistently get high rankings for customer satisfaction. Aside from auto insurance, Amica Mutual also specializes in homeowners, marine, and personal liability policies. 

4. American General
American General offers comprehensive life insurance packages to provide plan holders with income replacement, mortgage payoffs, or education funds. The insurance provider offers very low premiums to small business owners and large families, with different insurance terms available. Customers reported how their complaints have been addressed promptly and adequately, thus increasing American General’s customer satisfaction scores.

5. Kaiser Permanente
     Kaiser Permanente scored the highest for top health insurance providers. It registered high scores in claims satisfaction and customer renewal score. The company offers a selection of individual and family health insurance plans in ten states. Pricing is relatively higher over other health insurance plans but plans are mostly for the long term.

0 Why businesses get ripped off on currency and what they can do

Businesses trading internationally are unnecessarily losing out on thousands of pounds, dollars & yen when making and receiving international payments.

According to a recent article in the FT, a third of respondents to a survey reported gains or foreign exchange losses exceeding $1m.

Today, we’ve invited Daniel Abrahams, co-founder of My CurrencyTransfer, an OPP award winning foreign exchange comparison website to help better understand how to score a fair and transparent deal on currency.

Always opting for bank rates

A large proportion of SME’s are unaware that there are alternative methods of making international payments. Banks apply hefty markups away from the real rate of exchange, and charge fixed fees per transaction of up to £40 per payment. In the past couple years, we’ve seen a raft of innovation in the international payment space. Using a reputable, FCA regulated non-bank foreign exchange provider can help you save up to 5% on your international payments. On a £100,000 transaction, that’s a saving of up to £5000. Not to be sniffed at!

Honeymoon Rates

SME’s making international money transfers should be aware of a term known in the industry as ‘honeymoon rates.’ Less than transparent currency brokers and banks will offer clients a great rate on day one, only to widen and widen the ‘‘markup’’ away from the real exchange rate over time. It’s important to benchmark every single transaction against the interbankexchange rate to avoid the pitfalls of poor spreads. The difference between the ‘interbank rate’ and the ‘sell rate’ represents the true cost of your currency conversion.

Not managing currency risk

According to EuroTreasurer, one out of every three survey participants reported having increased difficulty even finding a bank that would hedge exchange risks. However, working with a foreign exchange broker lets you take advantage of a number of ways to manage a business’ foreign exchange risk. Often, you can trade ‘at the right rate, but the wrong time.’ Through currency contracts such as: forward contracts, limit orders & stop losses, an FD can help mitigate against the risk of adverse currency fluctuations.

Each customer is allocated a dedicated account manager who can take time to understand the business’ foreign exchange exposure. It’s so important to have a tailored & proactive service that is ‘on your side.’

No competitive pricing

It’s advisable to have a live trading account with more than one FCA regulated non-bank foreign exchange provider. Most don’t and this can often lead to becoming too comfortable with one particular foreign exchange company (think honeymoon rates). On each and every trade, cross compare the exchange rates offered between two reputable suppliers. After all, more competitive quotes equal a better saving! 

The myth of 0% commission

Finally, never be duped into believing that 0% commission means fee free international payments. It’s simply an elaborate marketing gimmick which in no way, shape or form equates to zero cost currency exchange. Whether you transact with a bank or foreign exchange broker, a good or bad currency deal will always be guided by the competitiveness of the exchange rate alone.

Good luck and with a little careful planning, your business will be well on the way to scoring a fantastic deal on international payments.

0 Tips For Hiring Online

The most difficult thing about working with people online is establishing trust and credibility, especially in a team. Without a common physical office to constrict activities, or a room to facilitate regular and emergency meetings, or even just a common space to observe each other’s performance, an employer has to result to different things just to be able to gauge an applicant’s credibility and competence. If you are looking to form your own team from a list of online applicants, here are some tips for hiring that you should consider.

·         Do a thorough background check. Browsing a Facebook account, no matter how extensive, does not constitute a comprehensive background check. With the number of people who want to earn money from home, it is quite easy to attract some people who only want to know how to make money fast. If you want to check out an applicant’s abilities or credibility, search for as many references as you can that might have some deeper insight on him/her. If you can gain access to documents (printed or online) such as bank records, former employer’s evaluation, blog posts, or even just simple testimonies from friends and former co-workers, it would already be a huge help in painting a bigger picture of the applicant. There are also online resources/sites that keep track of people’s job histories, especially if the applicants have already been with them for quite a while.

·         Test for competency. Once you’ve verified the applicant’s credibility, you can test his/her competency through a series of online examinations. Obviously, the test you’re planning to administer should be related to the skills needed for the position. For example, if you are looking for someone to fill the position of writer, then you can have your applicant tested for writing abilities. If you want a transcriber, then you can employ something akin to a speed-typing test. Whatever the case is, do not take the applicant’s word without seeing proof.

·         Require a probationary period. Sometimes, either through sheer luck or by cheating, an applicant undeservingly passes the test. How do you save yourself from trouble then? Fortunately, this is what the probationary period is for. Not only does it provide a certain period of time for the applicants to learn the required skills, but it also tests the applicant’s consistency, adaptability and knack for improvements. Obviously, it would be more beneficial to just lay off those team members who cannot deliver. After all, a team is only as good as its weakest member, so why keep a weak link in place?

Once you’ve mustered all the tricks, hiring online should be a breeze. 

Author's Bio: Jeric is a freelance writer that is interested in sharing information, tips and ideas online through blogging. He has been working online for about 3 years and exploring the many ways on how to earn money online.

1 Managing your finance successfully

Successful finance management is a valuable skill that would be handy for everyone. To be successful you need to know how to operate your finance effectively and how to make the most of your money. Here are a few easy tips how to become more efficient in managing your personal finances.
 1. Use single email address for payments. If your accounts are associated with various email addresses it would take more time and effort to track your balance. Check the balance regularly to know exactly what your financial situation is.
 2. Plan your expenses. Take a piece of paper and write down all your expenditures: flat rent, utilities, electricity bills, petrol, cinema, clothes, food, loans – all things you pay money for. See where you spend the most, check which items you could cut off or reduce expenses on. 
 3. Consider payday loans in emergency. If you are facing some unexpected expense and have no money to cover it on time, think about taking out internet loans online as this way you can avoid delays with your payments and even save some money. But bear in mind that you will be able to succeed only if you use this service wisely. 
 4. Calculate exactly how much you earn. Write down all the sources of income and how much money they bring. Compare the 2 numbers: your expenditure and your earnings. How much money is left after you pay all your bills? Know this number exactly because this is the sum you can invest to generate income. 
 5. Control your expenses. If you have done 2 previous tasks you should now know how much money you can spend every month. Make sure you don’t exceed the limit or otherwise you will get into debt. 
 6. Start building financial backup in case of emergency. Life is unpredictable: sudden illness, robbery, car accident, broken laptop, veterinary clinic. You never know what difficulties you may face and what extra expenses you will have to go into. So it is better have some emergency fund. Calculate your earnings and start saving 2, 3, 5, 10% from your income every month. 
 7. Subscribe to a retirement program. Check the retirement programs the banks in your city offer. Chose the one that won’t be a great burden on you. Most often such programs deduct a certain sum of money from your account every month or quarter. This is done automatically so you don’t need to bother and remember to make the payments on time. 
 8. Invest your money. If you are successful enough to have some spare money every month consider investing it into something reliable and safe. It may be a real estate deal, a project of your friend or your own brilliant idea that you can patent and generate income from. Interesting opportunities some along now and then so keep your eye on the market not to miss your deal. Alternatively you could think of a fixed deposit to earn a little from an interest rate. 
 9. Apply for health insurance. Hospital services are rather costly. If you feel something is wrong better visit a hospital as soon as possible. Having an insurance will allow you get diagnosed and get the treatment immediately. Eventually it will cost less than curing a neglected illness. 

These are simple ways of managing your finance. You don’t really need a degree in finance just keep your expenses under control, check how much you earn and try to save a little every month.

1 Create Your Own Debt Ceiling

Debt is rising for most young Americans, and it’s not the good kind of debt. More than half of college undergraduates have four or more credit cards. And 40 percent of 18- to 29-year-olds make only the minimum payment required each month. 

With few jobs available, many young people find themselves taking low-paying jobs just to pay the bills, but still coming up short every month. Accumulating a large amount of debt is easy, yet paying it off is difficult. Here are a few steps you can take to get help with your debt — and create your own debt ceiling:

Debt Settlement
There are several debt settlement companies that can call all of your creditors and work out settlements for you. Typically, part of your debt will be forgiven. Some credit card companies are willing to reduce the amount you owe by 50 percent or more.

Be careful when choosing a company, because you will likely have to pay for their services. Keep in mind that debt settlement can have an impact on your credit for years, but it likely will help you in the long run since the debt will be paid off.

Payment Plans 
If you're having trouble paying your bills, call your creditors to let them know what's going on. Some of your creditors may agree to reduce your interest or payments. A payment plan may allow you to free up extra income to pay off other bills. Depending on the company, though, payment plans may only be available if you are past due.

Offering the creditor a lump sum of cash to settle the debt on your own may also be possible, if you can free up cash from your retirement plan to put toward the debt. Selling an annuity to get immediate cash is one way you might be able to get a jump start on repayment.

Consumer Credit Counseling 
Consumer credit counseling is a great option if you have trouble creating a budget. Counselors will review your debt and income, contact your creditors to negotiate payment plans and collect the total amount for the payment plan from you. They will then make all of the payments to your creditors. 
Consumer credit counseling is another situation where you need to choose the company wisely. It is always a good idea to fully research the company before signing up with them.

Bankruptcy 
You may consider bankruptcy if your finances are completely out of hand. Depending on your situation, you may be able to have many of your debts discharged (Chapter 7) or pay back a majority of your debt over several years (Chapter 13).

Due to changes in bankruptcy laws in 2005, filing for Chapter 7 may be more difficult due to median income requirements. You must also meet with an approved credit counselor within six months before filing.

Bankruptcy will also affect your credit. Depending on the option you choose, it may stay on your credit report for seven to 10 years. Bankruptcy is a big decision with long-term effects, so make sure you have fully explored all other options before choosing this path.

Take Charge 
There are many options to help you get out of debt, but the first step you must take is to stop creating more debt. Stop relying on credit accounts as income, and find ways to reduce your monthly expenses. It may be a long journey, but the end results are priceless.

Alanna Ritchie has spent years studying, writing and learning to love the intricacies of the English language. Today, she works as a content writer for Debt.org, where her primary focus is personal finance.

2 Housing Market in Sacramento

The housing market across the country is seemingly turning around. Is the Sacramento housing market on trend along with the rest of the country? Yes it is. The number of people buying homes and selling homes is increasing throughout Sacramento.

The Market

This year has brought back new life to the Sacramento housing market. In general, the market has seen a staggering increase of 8% in home prices and it is expected to continue to rise over the next several months. This is well above average in many national regions. Even though the prices have increased, they are still half of asking prices before the housing crash. This is great news for any of you looking to buy or sell.

For those of you looking to buy, housing values are beginning to correct themselves, which will make the value of your house even greater in the coming years. You will no longer be entering into volatile market where uncertainty of one’s return has been incredibly risky for so many years now. A buyer will most likely benefit from selling at a higher price than they bought in the coming years. Sellers will also benefit. So many people were forced to take significant losses on their homes during the housing crisis forcing them into greater debt. Current homeowners looking to sell are far more likely to recoup their investment expenses, however it is unlikely they will make a tremendous profit. With that being said, some people are taking advantage of the rebound to make a profit.

The Trends

Sacramento has seen a surge in house flipping. These individuals are far different from the average individual looking to sell their home. House flippers seek out undervalued and underdeveloped properties to fix up and sell and a grossly inflated price to maximize the return on investment. Now that people are looking to buy houses again, flippers are taking advantage of the properties throughout the city which have been left unkempt whether it was through a foreclosure or individuals unable to afford the upkeep and maintenance on their homes. A house flipper will purchase the property at a very low price, fix up the interior and underlying problems, and quickly turn around and sell the house for tens of thousands of dollars more than they purchased the home.

Another trend, which began during the housing burst, is renting to own a home rather than purchasing the home outright from the beginning. Renting to own may not be for everyone, however it is ideal for a specific segment of potential homeowners. This option allows for people to secure a home now and pay for it later so to speak. The price is negotiated up front so that in a few years, when the agreement period is complete, even if the housing prices in the area have drastically increased, the originally agreed upon price is the selling price. This may seem like a dream come true, however it is important to note that during the rental period, the occupants must adhere to the terms of the contract perfectly or risk voiding the contract. Also, the renters will most likely have to make a deposit of 1% to 3% of the sale price and if they choose not to purchase the house or if they void the contract, the seller collects the money regardless.

The Sacramento housing market has improved and is fairing bettering than most cities in the US. The trends of house flipping and renting to own will continue to remain popular. As interest rates remain low and housing prices begin to correct themselves, the market will continue to flourish.

0 How to Save Money When Buying Your Own Health Insurance?

Health insurance is an important asset – and it’s one that you’ll soon be required to have. However, not everyone has the best health insurance benefits through their employer. The premiums may be too high, or the coverage may be insufficient. Therefore, they may look into buying their own health insurance. Others may be self-employed or unemployed and not have access to employer-sponsored health benefits.

While buying your own health insurance will give you the protection you need in case you become ill or injured, it can also be expensive. Premiums can easily top $1,000 a month, depending on where you live, the size of your family, and your personal health profile. Finding ways to cut back your premiums is important to helping you maintain your budget and your financial health. Here are a few ideas for how you can save money when buying your own health insurance:

Maintain Good Health

The best way to get the lowest health insurance premiums is to maintain good health. When you get a quote for insurance, you will be asked about your weight, your lifestyle habits (such as your exercise, whether you smoke and how much you drink), and any health issues you have experienced. The better your health, the better the rates you will be given. Of course, the better your health, the better your quality of life will be, as well.

Get a Lot of Quotes

There are many insurance providers for you to choose from, and it pays to get quotes from several of them to make sure that you are getting the best rates possible. It’s easy to get rate quotes online. You can fill out your personal details and get an estimated quote, which you can confirm when you follow up with an agent. The more companies you contact, the more competitive the quotes will be. 

It also doesn’t hurt to mention the rate you’ve been quoted from another company. Some companies may be inclined to find more discounts for you to compete.

Check into Discounts for Professional Affiliations

Even if you do not work full-time for a company, you may still be able to join a professional organization. For example, there are many professional groups for freelance writers. By joining these groups, you often get access to perks such as discounted health insurance. These organizations negotiate a group discount, which you can use to save on your quote. 

Choose Higher Deductibles

When you become ill or injured, you will often have to meet a deductible for your medical expenses before your insurance benefits become effective. By choosing a higher deductible, you can lower your premiums. Since routine well visits are automatically covered, you usually would only be paying towards this deductible if you became seriously ill or injured. In many cases, your medical bills will far outweigh the deductible, so you’ll still be saving money.

Of course, you’ll need to make sure you have the savings put aside to pay the deductible if the need arises. Choose an amount that you know you’ll be able to maintain in savings.

Open an HSA

A health-savings account allows you to make contributions tax-free that can be used for your medical expenses. This allows you to bring home more money in your paycheck, effectively creating a “discount” on your medical care. When you open an HSA, you also often qualify for discounts on your premiums. The HSA works a bit like a deductible, helping you to offset medical expenses that are not covered by your insurance.

Buying your own health insurance coverage can be expensive, but it doesn’t have to be. You can use these tips to help you get the coverage you need at a price that fits your budget.

About the Author:

Bridget Sandorford is a freelance food and culinary writer at www.culinaryschools.org. In her spare time, she enjoys biking, painting and working on her first cookbook.

0 Mortgage Forecast for 2013

In 2013, the mortgage industry has the potential for change for lenders, brokers and consumers.

The Financial Services Authority (FSA) and the lenders and intermediaries in the mortgage market are closer to establishing a workable set of guidelines with an emphasis on affordability and solid underwriting standards.

Lenders, not brokers, under the proposed guidelines, assume the role of assessing whether a consumer qualifies for a home loan. Credit is issued only under the circumstance when a borrow demonstrates a strong probability of meeting payments without dependence on rising housing prices.

Future fluctuations in interest rate are also considered when determining affordability. Borrowers are discouraged to enter agreements where they assume low interest rates will exist infinitely.

Customers who undertake interest-only mortgages must prove credible resources to meet the repayment schedule as well, outside of considering potential rising property values.

The institution is also working on establishing guidelines for business owners who raise capital via home equity loans to fund their entrepreneurial ventures.

Chairman of the FSA, Lord Adair Turner, believes these measures ensure enhanced lending practices in the future when memories of the past crisis fade and the temptation to engage in more risky credit practices reappears.

The FSA encourages the implementation of these new guidelines for 2013, enabling them to be established prior to future growth in the economy.

Mortgage industry leaders like Paul Broadhead at the Building Societies Association believe these measures protect the consumer, while also giving lenders proper discretion in determining credit-worthy customers.

Others remain skeptical, like Charles Haresnape, managing director at Aldermore Residential Mortgages, who is concerned why intermediaries have been given a pass to determine affordability in giving counsel.

Grenville Turner, chief executive of Countrywide, favors the measures to clarify which party is responsible for determining affordability, but he thinks the timing of the new standards is questionable.

He fears that the current market climate inhibits 39 of 40 potential customers from qualifying for  mortgage loans. To prevent further market sluggishness, he argues lenders need to become more flexible in assessing affordability for new applicants notwithstanding a solution for the self-employed and current homeowners trapped in negative equity.

The timing aside, the FSA seeks ways to facilitate the process for consumers navigating the mortgage application process. To reduce a daunting abundance of information, the organization has streamlined its prescribed disclosure requirements for lending institutions. These entities are mandated to share 'key messages' with the potential customer at the appropriate time, instead of using the Initial Disclosure Document (IDD).

Independent firms, according to the new FSA guidelines, are no longer mandated to offer their customers a ‘fee only' option. They must disclose to consumers whether they are mining direct-only agreements. Should these intermediaries desire to propose a direct-only deal, the FSA wants to eliminate the mandate to disclose a Key Facts Illustration, thereby streamlining the process for the intermediary.

In addition, lending firms must consider whether rolling fees into a credit agreement is suitable. Should the customer desire this method, the lender must move forward with the loan in this matter.

For non deposit taking institutions, the FSA seeks to implement capital requirements for these types of lenders. Non-bank institutions must abide by a more risk-based criteria, where the capital requirement is augmented. Subsequently, these firms will have to establish protocols and controls to manage their liquidity risk judiciously.

The FSA seeks to streamline processes for niche markets in lending as well, thereby galvanizing the entire industry. Under consideration are equity release products like lifetime mortgages and home reversion plans, high net worth lending, sale and rent back, home purchase loans, business lending and bridging finance. The FSA desires to establish clear guidelines for the niche markets as it does in the conventional mortgage arena, ultimately providing a consistent, straight criteria for its affordability standards, income requirements and other pertinent factors in determining credit worthiness.

1 Pacific Tycoon - Container Investment

Pacific Tycoon is an established and recognized leader in the shipping container leasing industry. Together, private investors and the experienced staff at Pacific Tycoon work in partnership to identify prospering marketplaces that will consistently deliver profitable returns, on every shipping container investment.

1 Easy Energy Efficiency Tips

There are lots of things you can do around the home to save energy and be more green and efficient. Rising energy prices, climate change, and ecological damage are just three reasons why we should all do our best to be more environmentally conscious, help reduce reliance on fossil fuels and save more energy, and the associated cost savings are a welcome bonus.

 

Heat Insulation in the Home

The majority of energy used in the home is used for heating and cooling systems, and people often fail to realize just how inefficient they are being with these systems.

Insulation is important to keep heat in during the winter months and to keep heat out during the summer months. Most unwanted heat transfer happens through the roof so this is the area you should focus on. There are many different types of insulation product available, including fiberglass and polyester. 

The R-value is a measurement of how insulating a piece of material is, and this is what you should use to compare between different products. The cooler and more temperate the climate you live in, the higher R-value you will need. In general you want a higher R-value for the roof than for the walls. In humid climates you need to be careful not to have a R-value that is too high, as this may cause overheating with homes that are exposed to the sun.

It is a good idea to close-off and turn off the heating in rooms that are not in use, and to check for all sources of draughts (such as vents and ducts) to ensure they are sealed effectively. This is especially important in dryer climates – always know your climate!

How Low Can You Go?

When the cold sets in, many people instinctively turn up the thermostat. But you can save significant amounts of money and energy just by turning the heating down by a single degree. Better yet, you can always turn down the thermostat in stages and see if you are comfortable with the temperature. If you get to a point where it is too cold, at least you know the most energy efficient temperature for the current weather. In smaller rooms you can often get away with having the heating turned off completely by using extra blankets for the beds.

Washing, Cooking and Cleaning

Use the lowest temperature setting on your clothes washer (or as low as you can possibly have it). Any good clothes washer will have low temperature options, and as long as the clothes you put in are not heavily soiled and do not have stains you will still gain excellent cleaning performance. To help improve the cleaning performance of your washer at low temperatures, buy detergents that work well in low temperatures.

Clothes dryers use a lot of energy, so dry your clothes outside on the line whenever possible or use clothes stands next to a window. For both washers and dryers, wait until you have a full load of clothing before you use them.

In the kitchen, the oven uses the most energy out of any cooking appliance. Reduce your reliance on your oven and switch to the microwave or the frying pan. When boiling water, you should only ever boil the amount you need. It is more efficient to boil water with a kettle than with a stove.

0 Mortgage Rates Trends

Nowadays, home mortgage rates are moving steadily lower. The 30 year fixed mortgage rate is hovering near the 3.375% region and it is expected to stay below 3.5% for a long period of time. Lenders are also extending credit at reasonable rates, with most lenders charging an interest rate of 3.5% and some at 3.25%.

Mortgage rates are heavily influenced by the prevalent interest rate and the 10-year treasury auction is a good indicator of the performance of interest rate. While mortgage rates are not directly based on Treasury rates, the underlying securities (also known as mortgage backed securities) tend to trade in the same direction as Treasuries. A big move in the 10-year Treasury yield can result in huge volatility on the mortgage rates.

Inflation does have an impact on mortgage rates as well. It is an early indicator of the behavior of mortgage rates. With increasing real estate values and a period of very low inflation, interest rates have remained on an all time low. Many economists feel that mortgage rates will remain fairly low in the future because inflation rate is running extremely low at the present moment.

Most mortgage lenders offer a combination of interest rates and points, for instance 6% and 2 points or 7% and no points. Points consist of a one time upfront payment made to the lender at the time of the closing of the mortgage. It is an additional fee on top of the mortgage payments and it is not part of the down payment. A sharp reduction in mortgage rates will result in a reduction in the cost of borrowing and an increase in prices in markets where money is borrowed by most people to purchase a home. In this scenario, the average payment will remain constant.

During periods of low mortgage rates, most homeowners opt for greater savings via refinancing. Some of the benefits of refinancing at the right time include lower interest rate, consolidation of the second mortgage loan, lower loan terms, lower monthly payments and taking a substantial cash out from equity. Borrowers who refinance also have the option of reducing either their monthly payments or the length of the loan term. It is not impossible to reduce mortgage terms from 25 years to 15 years while maintaining the same monthly payments. In the event that mortgage rates move even lower, borrowers can take the opportunity to reduce it by another five years.

Taking cash out from home equity to pay off credit card debt is another benefit of low mortgage rates. Certain debt consolidation loans also allow borrowers to reduce payment on home mortgage so that the money can be channeled to repay credit card debts, which bear interest as high as 18 to 25%.

Many lenders have come up with their own perspective for the direction of mortgage rates. Mike Owens, a partner with Horizon Financial opines that mortgage rates will continue to slide from its present territory of 3.375%. According to him, it is a good sign because the economy has remained stable so far. Victor Burek of Open Mortgage notes that the 10-year Treasury rate will be kept under 1.87%. As long as the rate stays below 1.87, he will continue to float and only lock in within a few days of closing. On the other hand, Steve Chizmadia, a mortgage consultant with American Capital Home Loans, feels that the treasury and mortgage backed securities market have been very quiet for the past few weeks. The energy that has built up over the last few weeks could potentially lead to a strong movement in rates in either direction. Julion Hebron, a branch manager at RPM Mortgage, has a different opinion. From his point of view, a strong economy will keep the bid for mortgage backed securities healthy and it is less likely for mortgage rates to drop further from current levels.

Suffice to say, even though mortgage rate is close to its all time low, it has risen moderately and there is a greater risk of loss from the practice of floating. Unexpected events can cause rates to move strongly in either direction. Things to look out for this year would include legislative actions in response to US debt ceiling and the Fed's outlook regarding securities purchase.

1 The Bank Bail-Out: Saving America's Banks

Much is known about the near-collapse of the housing market and the financial ruin that followed some of America’s largest banks. The more disturbing story is not how America’s largest financial institutions nearly caused the largest recession in US history, but how in the midst of the federal government’s efforts to stabilize the financial industry, the people, whose houses were being foreclosed and the small businesses on main street that suffered, were left in the dust. By examining the issues surrounding the collapse of the housing market and the federal government’s response, it is clear that the regular Americans were sacrificed in order to save wall-street.

In 2006 a problem arose across America. All economic indicators showed that prices for individual homes were starting to go down across the board. In order to try to force housing prices to increase, the Bush administrations authorized the Fed to lower interest rates and change the rules that pertained to borrowing. These new rules allowed an increase in the number of sub-prime mortgages, mortgages issued to lenders who might have problems with repayment. The result was that many people who previously could not afford to own their own home were allowed take out a home mortgage loan, which caused home prices to increase to record heights. With high prices and record profits, home developers began construction on new housing projects with the hopes of taking part in the housing bubble.

However, government deregulation, the saturation of the market with new houses, and sky-rocketing housing prices coupled with unnecessary financial risks taken by banks caused the housing bubble to finally pop. Homeowners woke up to discover that the value of their home was substantially lower than when they had originally taken out their mortgage for the same house. Many homeowners, who under normal circumstances would not quality for a home mortgage loan and were intending to sell their homes for more than what it was worth, found that their home was upside down and began to default on their mortgage payment. Foreclosures hit a record high and banks found themselves with a set of sub-prime loans that were now worthless, resulting in record losses for the vast majority of American lenders. On the precipice of the greatest financial collapse since 1929, investors and lenders alike solicited aid from the federal government.

What was proposed by Secretary of the Treasury, Henry Paulson, and the White House to Congress was the Emergency Economic Stabilization Act, which included the $700 billion Trouble Assets Relief Plan (TARP). The intention was to create liquidity for banks and lending institutions to prevent their financial collapse and, in exchange, the financial institutions would eventually pay back the money borrowed from the federal government with interest once the institution became profitable again. Under the Obama Administration, TARP was extended to General Motors and Chrysler, and a separate fund was created to reconstruct Fannie Mae and Freddie Mac.

Though the EESA created stipulations for the restructuring of the financial industry in the United States, this bill, and any bill after the EESA on the federal level failed to establish a plan to help homeowners struggling with their mortgage payments or homeowners facing foreclosure. The bill also did not establish a fund to bail out small businesses that were directly affected by the housing market collapse. Appliance and furniture retailers as well as home construction companies were faced with huge profit losses, and many of these companies were forced to file for bankruptcy or close their doors permanently. Though state and civic governments have attempted to address the issue within their jurisdiction, no federal actions have been taken to help homeowners or local small business. Many of those on main street America felt betrayed by a White House and Congress that was elected to protect their interest, and instead passed legislation to save the multi-billion wall-street banks.

The truth of the matter was just that, the blame should not be placed on the homeowners or the banks, but the federal government that first deregulated the housing market then failed to assist struggling homeowners and businesses. The government traded long-term growth for short-term price hikes, a fateful decision that the American people struggle with today.

4 Doctor Mortgage Loan

After the housing bubble burst, securing a mortgage loan became a difficult task. Many people no longer qualify for the mortgage loans they desire without putting money down or offering proof of adequate income. In recent years, however, some banks have begun to tap into a new corner of the mortgage loan market: doctors. With several thousand doctors graduating from medical school and residency each year, banks have begun looking to this section of the population for offering mortgage loans.

Doctors begin with lofty debts, no income, and nothing to offer for a down payment. However, with the high future potential of their earnings and a very low risk of default as compared with the general population, doctors have become a notable resource for banks to do business with. Despite the lack of income when doctors begin practicing medicine, banks realize that the future potential of doctors' earnings represents not only opportunities for mortgage loans, but also for doctors doing other business with banks in the future, such as investing.

A doctor's loan is made to new resident doctors or doctors a few years out of residency, although such loans may be made to specialized doctors, dentists, and veterinarians as well. The loan typically requires very little money down since new doctors have little money to spare, and the doctor's potential future earnings are considered when the loan is made. Additionally, the doctor's student loans are not calculated into the loan-to-income ratio. In exchange for not needing a down payment for the loan, the interest rate tends to be higher than that of a typical loan.

The loans are typically tailored for use in purchasing single occupant homes, such as garden homes or town homes. As part of the deal, the doctor often must open an account at the bank, as the bank hopes for the doctor's continued business and referrals in the future.

Well known banks, such as Bank of America, Regions Bank, Compass Bank, and Suntrust Bank are among the increasing number of banks to offer special loans for doctors, and the loans are available in many of the fifty states. Banks that offer doctor loans do not always advertise these services, so it is advised to check with each bank to make sure whether or not this type of loan is available.

For doctors considering these special loans, there are many aspects of mortgages and home-ownership to consider. A doctor in residency will not make as much as a doctor who is established and practicing. Therefore, a higher interest loan may not be in a new doctor's best interest. As a doctor's income rises over the years, the prospect of staying in small beginner's home may not be very appealing. Homes require maintenance, which will cost time and money that a new doctor may not have. Taking out a doctor loan bigger than one needs and then investing the difference could also yield some financial benefit.

An alternative to a doctor loan is to save up for a down-payment of twenty percent or so and then taking out a normal loan so as not to incur higher interest. Renting a home or an apartment is another alternative. A doctor loan is best for doctors who are serious about home ownership or doctors who are most likely to stay in the area, especially after their residency is finished.