Yin Yang of Reverse Mortgage Closing Costs

By Mudbrow Vanrock

Some areas of my business are tougher than others. Tackling the question and reasoning behind the costs of getting a reverse mortgage is one of them.

I believe I'm a poor salesman. As such I dive right in and tell my customers straight away, "The closing costs for your reverse mortgage will be higher than you might think".

FHA insured mortgage upfront costs are high for 3 reasons: First, the lender performs an appraisal on the home and charges costs on the value of that appraisal, not the money the borrower is qualified to receive.

The second is FHA charges 2% of the value of the home up to $417,000. And the last is reverse mortgage lenders charge an origination fee .5% to 1% higher than typical forward mortgages.

One doesn't need to have a degree in advanced calculus to quickly figure out that closing costs are fairly expensive.

One could argue the origination fee is not really higher than a typical mortgage, because forward mortgages simply build the fee into the rate. That's another subject for another day.

Much of the differences in comparing closing costs between forward and reverse mortgages comes down to the FHA upfront mortgage insurance. For a home valued at $417,000 just the MIP is over $8,000. It's no doubt a bundle, but without it, most of the same people griping about costs couldn't use this tool.

To put this into perspective, a seventy year old customer with a two hundred thousand dollar home would be entitled to borrow roughly $130,000 with an FHA insured mortgage.

Fannie Mae offered a reverse mortgage product until September of this year. It discontinued it. You know why? Everyone took the FHA product because it offered far more money than the Fannie product. The same borrower would have received less than $100,000 on the Fannie product.

Why ? Because the FHA insurance, everyone is so unhappy about, allows lenders to feel comfortable enough to lend such large amounts.

The insurance covers the lender in the event that one day more is owed on the home than the home is worth. This is the lender's biggest fear.

Expensive, horrible, bitter FHA insurance hedges the lender's risk, which makes much more money available to borrowers. But in the end it allows so many seniors to solve stressful financial issues.

About the Author:

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Continental Finance Credit Card - Review

By Dan Moskel

This card is a sub prime unsecured card. This means the Continental Finance Card is designed specifically for individuals looking for a second chance with credit.

When this card is issued it will give you an initial limit of $300. You will be able to receive semi-annual increases to your limit, with a maximum limit of $2000.

Your card will report monthly to all three major credit bureaus. Thus providing you a way to re-establish and rebuild your credit score.

This will help your score because it will improve your ratio of debt to available credit. In addition you can create a positive payment history by paying your monthly bill.

If you can improve these two factors you will improve your score. This is because these two factors are weighted almost as much as derogatory items on your credit report.

This card is unsecured which means that you do not have to put a deposit down. However you will have to pay an annual fee. This is typical with sub prime cards.

This card does offer a low 9.75% APR. This is way below the industry standard of 19% APR. Your card is accepted world wide at millions of locations.

They do offer easy approval and there are no minimum income requirements. You can still be approved for this card even with a recent bankruptcy on your credit history. They offer an online application decision within seconds of submitting an application.

The card is issued by The First Bank of Delaware. This bank has been a leader in sub prime lending for years.

With this card you will have free online account access. You will be responsible to pay your monthly bill and keep your balance below your limit.

The alternative is a secured credit card. However with this card it will take you longer to rebuild your score because this card is reported to the bureaus as a secured line of credit.

You also can qualify for a shopping card. We do not suggest these cards because they often come with large fees and only report to one credit bureau.

In sum we do suggest the Continental Finance MasterCard to anyone looking to re-establish their credit rating. This card will help by improving your ratio of debt to available credit and can build you a positive payment history.

About the Author:

For more about the Continental Finance MasterCard or for a review of a suggested secured card the Orchard Bank MasterCard visit us.

Tribute MasterCard Review

By Daniel Moskel

The Tribute MasterCard is often used to help rebuild a low credit score. It is an unsecured bad credit card.

This card is issued by the First Bank of Delaware. This bank has been in the sub prime lending business for years.

Your card can be used to improve your credit score. It will create a positive payment history on your credit by making your on time monthly payments.

Your payment history is factored heavily when your credit score is calculated. This card will also help your ratio of available credit to debt. This ratio is how much debt do you have compared to the credit you have that is not being used.

You will have an annual fee with this card; this is common with bad credit cards. Your APR will be 19.50% which is the industry standard.

This card will report monthly to all three major credit bureaus. You initial credit limit will be $300.

This card is unique because they are committed to approving most applicants. If you credit is severely damaged you can still be approved for this card, however instead of a $300 limit your card will have a $70 limit.

However using your card responsibly and you will have limit increases for both cards. There are no finance charges and no account set up fees for your card.

You will not have to pay an application fee and there is no minimum income requirement. They offer easy approval and free online account access.

When you apply you will have a 30 second online decision. Also your card will have limit increases with a maximum limit of $2000.

To get the most benefit on your credit report from your card you should try and keep the balance at approximately 25% of you credit limit. This is because it shows the bureaus that you do use your card and you are using it responsibly.

In sum we do suggest the Tribute MasterCard to anyone with a damaged credit history. You can use it to create a positive payment history and improve your ratio of available credit to debt.

About the Author:

For more about the Tribute Credit Card or easy credit cards visit us.

Finding Bad Credit Student Loans

By Dave Davidson

If you are seeking to further your education by attending college, most likely you can't afford the tuition costs on your own. You might need some assistance to make ends meet and realize your dream of attending college. But what if you have bad credit or even no credit history at all?

Lots of people ask me if they will need to improve their credit score before they apply for student loans. I almost always tell them that this won't be necessary. The government provides several different types of loans that help people that have bad credit.

Most student loan programs offered by the federal government are based on need. The government backs these loans and that makes them available for people, even if their credit is poor. As long as you have financial need, you can probably qualify for Stafford loans and you credit history isn't considered when you apply for Stafford loans.

If you are a person that has a lot of need for financial assistance, you may be able to qualify for Pell grants and/or Perkins loans. These types of financial assistance are available for people that have bad credit and need to pay for education. Credit actually isn't part of the process of applying for these loans so go ahead no matter what type of credit you have.

With Pell grants, you aren't asked to repay any of the money that you receive. Eligibility for these grants is based solely on the need of the individual. Usually people try to get Pell grants first, and then take out loans as it's necessary.

Even if you're not able to qualify for the loans that are backed by the federal government, there are other options available. Unsubsidized Stafford loans are available to almost anyone, even people that don't have that much financial need. Credit isn't part of the approval process for these loans.

With this type of loan, the government doesn't pay the interest for you, so you will have to start making payments right after you take out the loan. However, interest rates are quite low on these loans so most people can handle the payments without too much trouble.

About the Author:

Dave shows student everywhere how to find student loans bad credit and other bad credit student loans.

Starting a Credit Repair Businesses

By William Blake

Judging by the kind of newspaper advertisements being made today, the demand for credit repair services is huge. Current high levels of unemployment coupled with the tight credit market means that there is certainly a strong case for opening up your own credit repair business.

The fact of the matter is that more and more Americans are going to need to improve their bad credit and this is where an enterprising person should jump in; open your own credit repair business and make a tidy sum of money for their efforts.

A Head for Business

It pays to have some experience in doing business from home and if you have tasted success at any kind of home business then opening your own credit repair business makes a lot of sense.

Or maybe you have some personal experience with credit repair. If you have experienced credit problems in the past and have successfully worked through them you probably learned a lot about reading credit scores, correcting errors on your credit report or creating and sticking with a payment plan. The knowledge you have gained will be a great benefit to you and help you be more successful.

In order to succeed after having opened up your own credit repair business you need to first of all have a detailed plan in place. It is crucial for the success of your business that you understand the market for such line of business in very fine detail and once you are absolutely clear about what opening your own credit repair business means; only then should you proceed further.

One of the first things you need to do is count the cost to see what type of investment you will need to make to get your business started. Also you need to check out your competition, know who else in your area is in the same line of work. Then educate yourself on what services your business will need to provide and how to go about that.

One you've started pulling your business together you need to start thinking about drawing in customers. It might be helpful to check your local newspapers for foreclosure and bankruptcy listings to see if you can create of list of potential customers.

About the Author:

Can cancelling a credit card save you money on your debts? Find out whether they're as good as they sound on the Debtopedia website at www.Debtopedia.com where you'll get your free copy of my report Secrets Of Credit Card Debt

Find Out How to Protect Against Identity Theft by Using LifeLock

By Harvey Warmuth

Today, you really need to be aware of the possibility that you could become a victim of identity theft. Since identity theft is on the rise, the possibility of you falling victim to identity theft grows as each day passes.

By using common sense and some basic precautions, you can do your part to make sure that you identity is never stolen. However, there is only so much you can do on your own, so you might want to look into making use of an identity theft protection solution.

LifeLock is an identity theft solution that works by placing fraud alerts on your credit reports with the three main credit bureaus. Whenever an account is being opened in your name, you are first contacted regarding the new account. You have to confirm the account is actually to be opened, thus preventing a thief from using your information to get credit.

LifeLock also continually checks sources, such as the Internet, for suspicious activity regarding your personal data. Identity thieves often trade personal information to make money. Because they monitor the normal places were such activities take place, LifeLock is proactive when it comes to stolen identity protection.

LifeLock's $1 Million Total Service Guarantee is proof that they completely believe in the service that they are providing. This guarantee will put your life back on track if you happen to become a victim of identity theft while using LifeLock's service. It is comforting to have such a guarantee standing behind you, so you can worry less about identity theft.

LifeLock offers plans for individuals and kids. Currently, they do not have a solution that covers your entire family. There are competitors that have such a plan, so if this is of great importance to you, there are other ways to go.

One of the better solutions to the serious problem of identity theft is LifeLock. They offer plans that begin at just $9 per month, so you will be hard pressed to find a better solution.

Make today the day you start using LifeLock to protect your identity. Since identity theft crimes are on the rise, you need the best protection currently available. LifeLock is a great choice and they offer incredible protection for a very small price.

About the Author:

Harvey Warmuth feels strongly that you should take every precaution possible to protect yourself from identity theft. Visit his website to find out more information: LifeLock review

Hispanic Credit Card Consumption

By Eliud Perez

It seems that the more Americanized Hispanics are the further in debt they become. Its all due to higher credit card consumption among Hispanics lately.

Hispanics have not used credit cards for years. They tend to use cash when they make purchases.

The reason most have credit cards is because people tell them to build up their credit. Most do not have a credit background and cannot finance big purchases like a vehicle.

Hispanics end up falling into the American system of having debt so they can go further into debt. All because some company told them to build up their credit.

Used car dealerships do well with Hispanics because they can make cash purchases and not have to finance their vehicle. Most Hispanics still prefer to use money to make purchases.

More banks are explaining their services in spanish so Hispanics can have the option of reading it in spanish. At least they can read about how to use credit cards.

As long as Hispanics are being educated about credit card usage by the big banks this is a good thing.

For years Hispanics were debt free because they used money to buy things but now Hispanics are working harder than ever because of their American lifestyle.

About the Author:

So when you see banks with signs that have Tarjetas de Credito, that means they are targeting Hispanics. Tell them to educate Hispanics about debt, or in spanish, de Deuda. Hopefully one day we can see more debt free hispanics using money to assist other people.

The Supremacy of the Platinum Credit Cards

By Gray Rollins

Platinum credit cards offer more benefits and purchasing power than the Gold or Standard credit cards. The status associated with Platinum credit cards is one of the reasons people prefer this card. In today's society where image is so important, possessing a platinum credit card says you are a successful person. This card is for those with a high income and excellent credit rating.

One type of platinum credit card offered is the American Express Platinum credit card. This card will allow you up to $100,000 in credit depending upon your credit history and income. This is a highly prized card because of the status of having one and the benefits that come along. Known for being very liberal with credit line increases, they are more so the longer you keep your credit card, American Express also offers a 1.5 rewards points every time you purchase an item using this credit card.

MasterCard offers a platinum credit card. This card is accepted almost every where in the U.S. and abroad. The percentage rate, which is very reasonable, will stay at a reasonable amount as long as the payments are made on time.

This platinum credit card is perfect for individual who are earning high income to afford the monthly payment of the balance due each month. Paying only the minimum of the outstanding balance of failure to pay on time will cause the interest rate to go up to 35%.

The Discover More Platinum credit card is another credit card that is suitable for people who can afford the payment but prefer the 0% annual fees and low introductory APR. The APR will remain low if the payments are made on time and good credit score is maintained. This card also gives high spending limits to cardholders with rebates and bonuses for every purchase. Online account is also accessible anywhere.

Platinum card suits people with high income and financial capacity. Individuals who are qualified to avail credit cards would prefer the Platinum credit cards rather than the silver or gold credit cards. This is because Platinum credit cards can provide many services such as concierge services, travel services, and other important and essential VIP services as demanded by the professional cardholders.

Platinum credit cards can also give service to business establishments. With so many options to do using the card, you can utilize the budget of the business and save part of the capital as you avail the installment plans. By using the platinum credit cards for your business purchases, it can also enjoy the benefits associated in the card. Aside from the rewards, bonuses, and other privileges, you can also generate savings of up to 25% on purchases made from companies affiliated with your credit card companies.

Platinum shopping card is also a form of credit card. Unlike the regular credit card which can be used for dining, travel, or other services, platinum shopping card is only intended for purchases of merchandise or just for shopping purposes. The credit transactions are still reported to the credit bureau for the credit score, so be sure to make prompt payments and take care of your credit history.

About the Author:

Not all Platinum Cards are created equal. In fact, some are just downright lowsy. Get the finest Platinum Card available by applying for the American Express Platinum Card today and you'll receive 25,000 points as a special one time bonus.

Credit After Bankruptcy

By Matt Douglas

With a bankruptcy mark on your report your score will be lowered considerably. However there is hope, you can remove this mark and by building some positive credit you can create a good score.

Contrary to popular belief this mark can be removed from your report and without waiting 10 years. To remove this mark we suggest:

1. Dispute the listing with the bureaus directly.

This is done by sending a dispute letter to the bureau; you can do this yourself or hire a service to do it on your behalf. The bureau will then conduct an investigation into the listing. However bureaus do not check public records when they investigate a dispute, thus the listing will not be verified.

Congress passed the Fair Credit Reporting Act and this says that the bureaus must remove any item on your report that can not be verified. People frequently ask if credit repair is legal. It is not only legal but this act explicitly says any mark you do not feel is accurate can be disputed. There will never be any legal ramifications for filing a dispute with the bureaus.

It is rumored that after 2 years it is easier to remove this mark, however it is not required. Additionally we suggest you make sure that any negative item on your report reads "included in bankruptcy." The reason for this is you will later dispute the validity of these items because your report does not show a bankruptcy.

2. Once you have removed the initial mark, you can start disputing each negative item.

You can dispute it on the basis that it says "included in bankruptcy", but you do not have a bankruptcy on your report. Thus each negative mark should be erased once investigated. Doing this will give you a clean slate on your report.

3. We suggest you start building positive credit. This is most effective by opening a new revolving line of credit such as a credit card.

By making your on time monthly payments you will create a positive payment history. Additionally keep your monthly balance at 25% of your available limit because this will show the bureaus that you do use your card and use it responsibly. This will improve your ratio of available credit to debt, a very important factor when your score is calculated.

While it is not illegal to dispute an accurate mark on your report it may not be the most ethical thing to do. However in my opinion charging people outrageous interest rates upwards of 30% and charging late fees is not ethical either.

In sum a positive payment history, report clear of derogatory items, and a good ratio of available credit to debt is the recipe for a 700 plus score. This will improve your quality of life by; saving you money on large deposits, high interest rates, and the embarrassment of a denial.

About the Author:

For a review of Lexington Law a suggested credit repair service www.lexingtonlaw.com visit us or for an article about how to remove a civil judgments.