0 Using Your Bank as a Mortgage Lender

A mortgage is probably the biggest financial agreement you will ever enter into. For that reason, it is understandable to be concerned with who you end up receiving that massive loan from – not the least because it is, by definition, secured by the building you and your family call home. One major decision budding homeowners face is whether to go with their own bank for their mortgage, or contact a specialty mortgage company who makes home loans the bulk of their business.

Mortgage brokers can be best compared to a local independent insurance agent, or even a supermarket. They maintain relationships with a pool of lenders and usually offer several different “brands” of mortgage with small, but notable, differences.

There are two main benefits of choosing a mortgage broker over a bank: first, because of the range of mortgages they offer and the increased number of lenders they do business with, they can usually find a solution for borrowers with substandard credit or who otherwise find it difficult to borrow. They also have a greater range of options for unusual properties that a standard bank may not choose to deal with. Second, this freedom of lending and the fact that mortgages are their sole focus means that they are often faster to process paperwork, speed up closing times, and can work on your behalf to find the best interest rate available to you.

This service absolutely does come with a cost. Brokers are middlemen by definition, and so will have larger closing fees than going to a lender (such as your personal bank) directly. The brokers are also compensated by the lenders for making the deal. In addition, any given mortgage broker will probably work with a customer once and only once. This leaves no space for relationship building that may otherwise have had a positive impact on the loan and interest rates.

This contrasts strongly with banks. Often, by the time you are seeking a mortgage, you have been with your personal bank for at least a few years, giving them an insight into your cash flows and how you seem to handle money. This is increased even more if you maintain checking, savings, and credit accounts all within that same bank, or have taken advantage of other financing and investing products offered.

If you are responsible with your money, that relationship can make the bank more comfortable giving you improved an improved interest rate on the mortgage. If you have a history of doing extra business with the bank like purchasing CD rates and other instruments, for example, they may give you a break in hopes that you remain a faithful bank customer.

Both mortgage brokers and banks almost always end up selling mortgage loans on the secondary market. For that reason, the language in almost every mortgage is standardized. Notably, this erodes a concern some might have with a mortgage broker leaving the picture as soon as the deal is done: in the end, the borrower works with a lender who has sold the loan no matter what.

The primary difference between any two mortgage contracts will be the interest rate. Considering the size of most mortgage loans, even a tiny difference in the interest rate can reflect a substantial amount of money over the life of the mortgage. For that reason, it should be the number one concern when shopping around for a servicer no matter what.

Rarely, you may find a bank that offers what are known as “portfolio mortgages,” which means they will not be packaged with similar loans and sold off as an investable security. In this scenario, the bank may end up being a better option because they do not have to worry about the marketability of your mortgage loan on the secondary market. A prime example is a borrower just out of college with substantial student loans: the secondary market sees a borrower with a huge amount of debt other than the mortgage, whereas a bank holding the loan for themselves might be more willing to look at the greater picture of financial responsibility the borrower presents.

In the end, the interest rate should still be the driving force behind deciding on a servicer. Tight competition between mortgage brokers might mean you receive a better rate using one, but using a bank might let you take advantage of relationship building and history not considered as strongly with a broker. If the interest rates are identical, stick with a bank.

1 Everyday Financial Tips Parents Can Give Their Kids

There is a proper mindset regarding money that should be taught to children as soon as possible. A child that is taught proper money management skills at an early age will continue those habits as adults. Parents who really care about their kids will make sure that they have proper money management skills.

Tip 1-Having Proper Medical Coverage Is Mandatory

Medical bills are among the leading causes of bankruptcy in America. However, medical coverage doesn't have to be something that is expensive to carry. Cheap medical insurance quotes can easily be found online with a simple Google search. Another option for receiving coverage is to find an employer who is willing to provide medical coverage to employees.

Tip 2-Make Savings A Key Part Of Any Budget

Saving money can lead to a stable financial future. Having a healthy amount of money in a bank account can help to protect against a future financial emergency. You never know when you might lose your job and the money that goes with it. An unexpected medical bill could add to your expenses when you have not planned for it. Having a baby would certainly create new expenses that a healthy savings account would help you with. Having an emergency fund allows you to deal with the financial adversity that life is going to throw your way.

Tip 3-Pay Cash Whenever Possible

Credit cards can be a great help in times of emergency. However, credit cards can also cause financial problems if you rely on them too much. Never use a credit card when you can pay for something in cash. The interest that you have to pay is not worth it. Credit debt can become a larger problem should you ever lose your job and ability to pay on time.

Tip 4-Only Carry One Credit Card At A Time

The best way to minimize reliance on credit is to limit the amount of credit you have available. Carrying only one card at a time is a great way to make sure you are not going crazy with your spending.

Tip 5-Invest Your Money Wisely

An easy way to lose your money is to invest it poorly. Always take your time before putting any of your money in the market or probably invest in a real estate. Analyze the risks and potential pitfalls before giving anyone your money. One bad investment can drain you of all your savings.

Tip 6-You Will Never Get Rich Quick

The only way to build your wealth is to use patience and good planning. Saving money is a long-term project that requires you to make sacrifices for the greater financial good. Trying to get rich without working for it will generally cause you to lose everything.

Being smart with your money is an important part of a stable future. Having a stable source of money will give you security and peace of mind as you go through life. Financial security gives you so many options and choices as to how you want to live your life. The ability to save your money provides insurance against the adversity that life will throw your life.

0 Easter Giveaway!

Win KindleFire HD Tablet. Click to log in and answer the questions for a raffle entry.



a Rafflecopter giveaway

0 What is Spread Betting and how to Capitalize on it?

Spread betting is a popular form of trading on margin. It is by far less costly than trading regular shares, and it contains some inherent flexibility. As to online trading, InterTrader presents the best deal on spread betting. InterTrader makes the trading experience easy and comfortable. Their Bonus for initial accounts is up to a whopping £1,000. They aim to make you a happy trader for the entirety of your trading life. Tight fixed spreads and flexible mobile dealing are what you can expect at InterTrader. Helpful, courteous and cost effective trades define the spread betting experience at InterTrader.

Spread Betting Defined

Betting on the future rise or fall of a trading instrument is known as spread betting. The spread is the difference between the Buy bet, known as the offer, and the Sell bet, known as the bid. The fall and rise in value of the instrument being traded is calculated in terms of points. The investor places a specific bet amount per point. Let’s say you find a stock that appears to be at the threshold of a rise in value. Spread betting provides the opportunity to cash in on any immediate increase when you place a Buy bet. If that stock indeed experiences an increase in value, then you may close with a Sell bet at the higher value.

In practical terms, if you place a Buy bet of £15 per point for Stock Z at 110 and it rises to 115, then the spread is 5 points. You may then choose to close your position, placing a Sell bet at 115. Your profit will be the spread times the bet amount: £75. Now look at a stock which you perceive will fall in value. Without first placing a Buy bet, place a Sell bet. If you were correct, and the stock plummets, you would close your position by placing a Buy bet at the lower value. Placing a Stop Loss will limit your risk. In a volatile market, you could incur a major loss in the absence of a Stop Loss.

Spread Betting at InterTrader

An ever-increasing number of investors are finding spread betting at InterTrader to be an accessible and affordable method of trading when the focus is on rising and falling markets. Traders are consistently relieved to discover the tight fixed spreads; low margin rates; and wide variety of trading instruments, some of which include trade indices, forex and shares. Further, all spread betting gains are untouched by Capital Gains Tax and stamp duty. Secure service and user-friendly platform are the hallmarks of InterTrader. You can rely on InterTrader’s quick and accurate completion of every transaction. You will find dependable and easy access, along with transparency in the separate and secure placement of all client funds. Of primary importance to every investor is InterTrader’s cost-conscious trading package including a complete support system. You will receive free training tools as well as free live charts and trading signals. As an added bonus, traders enjoy a savings of up to 10% of their cost with TradeBackTM.

This article has been contributed by InterTrader.com, a UK based spread betting provider.

0 5 Mistakes You Make While Preparing For Your Insurance Exam

Now days, it’s almost impossible to find time to study and prepare for your insurance exam. Most of the insurance agents are busy with their job but not taking your education will keep you behind your colleagues and at this time of you recession, no one wants to work for a low pay scale. So it’s better to take as much education as you can.

But, there are a few common mistakes that professionals make while preparing for their insurance exam. After reviewing an analysis, experts says that there are 5 common mistakes students make while preparing for their insurance exam.

This post might help many insurance agents in preparing for their exam and avoiding the mistakes that can lead them to fail in final exam.

1.  Relying on Practice Exams – A typical enticement learners may have is to study the course material or guide only once, and then take practice exams over and over. Practice examinations are designed to strengthen the content that is discovered within the training and guide. By continuously taking examinations and neglecting the course content, you skip the connection between ideas and their complete significance. While our programs provide thousands of examination concerns, and while each examination randomizes concerns being provided, shuffles an order of concerns and possible solutions, over time your mind is saving these ideas instead of completely learning the concept. Practice examinations should always be additional to the course content.

2.  Are You Aware Of Your State’s Requirement – As mentioned in How to Improve Your Insurance Examination Planning, the State Examination guideline is a great resource because it shows how many concepts are included in each part of insurance test. Why would you spend equivalent time learning for area that contains 5 questions to a area that contains 25 questions?

3.  Studying Continuously For Long Hours – It is easy to understand that you want to research as much as you can within short time. However, by studying continously for long hours adversely impact your ability to process the details being learned. Experts suggest learning in short sessions, regular classes of no more than 45 – 60 minutes at once helps you understand concepts and keeps your mind fresh. Then, take a break to clear your thoughts and allow the details to set. This will help keep your thoughts and energy rejuvenated.

4.  Not studying Regularly – It is also not suggested that you take plenty of time in your planning. Set a study schedule over the course of a couple of weeks to monthly. Repeating is important to studying, so regularly examining the course content over a interval of few weeks is the best strategy. Also, get a date for your insurance license test as soon as you are ready so the concepts are clean in your thoughts on examination day.

5. Don’t Rush if You Are Not Prepared– Not being fully prepared for your insurance exam will almost guarantee a failure. Whether your company is pushing you to complete it or you just did not get enough time to prepare, you will have difficulties passing the examination if you are not completely prepared. This will result in having to retake the examination, which means more of your money. Even if you do take adequate a chance to get prepared for the test, it may be challenging to determine if enough study-time was placed on each area. 

 

LearnInsurance.com, e-learning hub 360training.com’s insurance portal, provides the necessary Texas insurance continuing education and Texas adjusters license online program for the state’s insurance agents.

2 Five Steps to Design An Effective Real Estate Ad

Newspaper Ads: Five Steps to Design An Effective Real Estate Ad

Nowadays, some businesses might think that it’s now hard to use other forms of advertisement apart from the online types. They might think that in this computer age, online advertising is thebest way to promote your brand or products.

But on this post, you can learn the technical aspects of the DO’s and DON’Ts and the step by step procedure during the design stage on how you can make an effective real estate advertisements on newspaper!

Step one (1). Collect everything you need to be placed on the ad.

• Key features. If you’re advertising for example a "condo in the Philippines", note all the items that might interest the reader: location, square footage, the number of bedrooms and bathrooms, amenities.
• Adjectives. Research on competitors’ posts and compile all the hot words: brand new, classic, luxurious, best offer, impeccable, modern etc.

Step two (2). Create an outline layout. Draw and visualize where each element will go. Do you put the picture and content side by side or place the image in the middle instead? For the content outline, use bullets for list.

Step three (3). Work on the copy.

• Headlines. The tagline must say it all. It has to be dramatic and memorable, should be easy to read regardless if it’s written in upper or lowercase. The first three words are extremely important. Go direct to the point. Mention the property or brand name.
• Benefits. Highlight the benefits. Be descriptive. Emphasize how it stands out from the rest. List the price if the deal you’re offering is something that they would not see from the others. Enumerate how much they’ll save and get discounted if they avail your product and service.
• Call to action. Put in a sense of urgency so they’d take action right this very minute-- “Today!”, “Now!”. Write down the availability but also show how opportunity is wasted if they postpone contacting you. Keep it strong and brief.
• Contact Information. Leave your contact details. Guide the client on what they are supposed to do, should they call, visit, or buy. Add “Like us on Facebook” or “Follow us on Twitter.”
• Technical Writing. Always prefer active voice: YOU instead of WE. Headline must be bold-faced. Stick to Roman or Serif font type. If your copy is in paragraphs, distribute it evenly, perhaps 3-4 lines. Moderate capitalization. No to italics or script as they are not that readable.

Step four (4). Choose your illustration. Focus on people instead of an empty lot. Concentrate on bringing out your reader’s emotion through your photo and translating it into something that they can imagine themselves being in that exact same scene. One is better than many. Include caption.

Step five (5). Take a final look. Perform a test run by asking for opinion. Do not be afraid to make mistakes. Do trial and error.

1 Using the reversal strategy in binary options trading

Binary options trading is known as a short term trading and it is necessary to find your own strategy to keep emotions aside and gain more from the market because emotions is the main reason why such strategy appeared.

If you're not new to trading or at least you've followed some company stock price trends, you might notice that sometimes company stocks are overpriced or undervalued. This happens because many traders (mostly speculators) are very careful and when they see some bad news coming out about a company which stocks they own, they try to get rid of them as quickly as possible without a significant reason or vice versa if news are in favor of the company. Of course, because of this, company stock prices will change noticeably. I.e. these can be rumors or news that could affect trader’s decision.

As such things happen, you can be careful and try to notice it and even benefit from it. In binary options trading there are not that many assets yet that traders can trade. So it is easy to notice if some bigger price changes show up. Most likely you'll be able to read about it in most daily market review websites. So what can you do about it? I.e. you notice that Baidu stocks yesterday were traded for $93.05 and today when the market opened they dropped to $85.60 which is -8%. For such company there should be a reason why it happened. Try to analyze and understand why did it happen and is it really that important to affect stock price to drop -8%. Follow the trend for some time and if it is not decreasing anymore it might be the right time to buy a call option because it might stabilize a bit in the next few hours.

Few important tips:

• This is not a long term strategy, it is better to use it only for short term trades like 30 minutes, 1 hour;
• Do not use it on 60 second trades, it might be too short;
• The best moment to use the reversal strategy is when the market opens and you can quickly go through the latest news to find a company or an asset that might fit these conditions.

0 Questions about changing your site's layout and design

So I was staring at my blog for quite a while now. I've been thinking of so many things I'm planning to do with it. But first things first, I need to change the lay out and design. The thing is, I'm no web designer for crying out loud. The template I'm using now is something I found on Blogger Templates. I'm quite hesitant as well because it might affect my site's traffic. I've been trying to find a fairly cheap web designer to do the lay out for me but it's pretty hard as I'm quite busy myself. Below are my questions with regards to changing of lay out or web design, feel free to share your opinions (I would be more than eager to hear them I swear):

1. Will my website's design/lay out affect my visibility in the search engines? (My daily visitors increased rapidly with the constant updates on my site, I really don't want to lose all that traffic)

2. Any idea where I could find a decent lay out for blogger/blogspot sites? (How I wish I chose wordpress instead of blogspot, it's easier to navigate and a lot of templates to choose from *based on my experience*)

3. Do you have referrals of web artists/ designers I could afford?

4. What color is advisable for a finance related site? ( I basically sticked with white for the main purpose of it is easier to read with a black text/ white back ground concept)

You might wonder why I don't just search my questions up in Google, well the answer is -I'm lazy. I really value personal referrals rather than what Google tells me. Besides, wouldn't it be fun sharing ideas and interacting with other bloggers? Hope you guys could help me out with my questions.

0 Higher Property/Casualty Insurer Profits Expected in 2013

A robust premium growth and better underwriting results are expected to boost U.S. property/casualty insurers' profits in 2012, says Fitch Ratings Inc. following the release of the New York-based rating agency’s “2012 Outlook: Property/Casualty Insurance” report. In it, Fitch forecasts that 2012 will be a stable year for the industry since its capital position remains strong and that most insurers have enough capital to cope with “significant future adversity.” The outlook sharply contrasts with the deep retreat in profitability for the industry in 2011, which was hamstrung by poor underwriting performance and declining rates of return on investment promoted. Fitch, however, expects the property/casualty industry's profitability to rebound strongly next year. That should be a boost for those who have an insurance license and those who are already working to renew their licenses via insurance continuing education. Fitch explains that core underwriting results will improve and that catastrophe losses will return to average following heavy catastrophe-related losses during 2011. The rating agency also cautions that the commercial lines segment of the industry is likely to shift to a negative outlook in the near term “relative to personal lines given differences in recent results and fundamental pricing trends.” Fitch cautions that a major catastrophe, investment market dive, or more underwriting losses could result in a negative industry outlook. In Texas, LearnInsurance.com, e-learning hub 360training.com’s insurance portal, provides the necessary Texas insurance continuing education and Texas adjusters license online program for the state’s insurance agents.