Instant Loan Company

Whether you’re just graduating from school or your roommates have told you they’ve signed a lease to live somewhere else, you’ll soon find yourself living alone. You can always find a new roommate but for many who have had roommates or lived with others it’s time to get a place all to themselves. Before you make your own move, here are some tips to help manage your finances and not worry about your bills. Before you do anything, sit down and create a reasonable budget. No longer will you be pooling your money together to pay for the utilities or rent, it’s all coming out of your take home pay. Itemize the expenses you know you’ll have such as your mobile phone bill and car payment. Then consider other expenses you’ll definitely need such as food and entertainment. Figure somewhere around one-third of your gross monthly income for rent. It’s the unplanned expense that wrecks most budgeting plans. Advertisers pay lots of money to people who make some very slick ads. Don’t feel as ...

Mortgage lenders everywhere typically offer the same set of mortgage programs with both conventional loans underwritten to Fannie Mae and Freddie Mac guidelines to government-backed loans such as VA, FHA and USDA programs. And while all lenders compete for your mortgage with the best combination of interest rate and closing costs, there are some things that will make your interest rate go higher than they otherwise would be. What are they? Your credit score can cause a rate to be higher. Borrowers with a credit score of at least 740 are offered the best combination of rate and downpayment requirements while those scores as low as 620 will have a higher rate and might be required to have a higher down payment. If you’re buying an investment property, rates for those will be higher compared to financing a home as a primary residence. Lenders know that should borrowers experience some sort of financial duress, the investment property will more likely to go into default than someone...

As consumers who really don’t get a mortgage but just a few times in their entire lives, the differences between mortgage programs really may not seem that big of a deal. But there is a reason why there are different mortgage types and historically they provide financing solutions based upon an individual’s personal situation. That’s where an FHA mortgage loan comes into play. The FHA mortgage was first introduced in 1934 as Congress tried to bring some sense of normalcy when financing a home. Back then, banks could require a down payment as high as 30, 40 or even 50 percent and offer short term financing for just a few years which means the borrowers would have to either pay off the entire loan when it came due or refinance all over again. The Federal Housing Administration changed all that with universal guidelines that lenders could follow, not matter where the property was located. FHA is not a mortgage lender but instead is more of an insurance company that ensures lenders sh...

We all have our own monthly obligations and expenses we must consider each month. Many of our expenses are mandatory while others are by choice. We need to pay our mortgage each month. The electricity bill. Mobile phone. Insurance. Car payment. These are just a few of the monthly bills we have to pay but when we add in additional discretionary spending, especially just after the holidays when we might have spent more than we had planned, making monthly payment on time can be a bit confusing even overbearing at times. At other times of the year, expenses are more easily handled and bills paid on time when discretionary spending is lower. Yet keeping track of all these bills and making sure there are no payments made after the due dates can be a challenge sometimes. Here are a few tips to keep you on track. Set Up Auto-Pay This is the most convenient way to make sure your payments are made on the due dates. Remember, even though credit reports only show late payments when they’re ...

A cash out refinance is a transaction where the borrowers take out equity in the form of cash while refinancing an existing mortgage. Homeowners who financed their homes have the opportunity to refinance an existing mortgage for a variety of reasons and it’s not only because interest rates are lower than the one they currently have but for most, that is the primary driver. There is no reason to not refinance to a lower rate should a lower rate become available and the process of refinancing is very much like taking out the original loan. Say that a borrower has an interest rate of 5.00% on a 30 year note and rates have fallen to 4.00%. By refinancing to the lower rate, the borrower saves on interest. Or, the borrower could elect to change from a 30 year note to a shorter term loan. Doing so saves on long term interest and the loan is paid down at a quicker pace. And refinancing from an adjustable rate loan or a hybrid is also a good option for many borrowers who want to get away f...

Okay so we’re well into the New Year and we know you’re already wondering how to get a great mortgage in 2017, right? Well, maybe not. If you’re like most you have other New Years’ Resolutions you’re still working on and a mortgage really isn’t on the front burner…that is unless you’re getting ready to start shopping for a home. Here are some tips to make sure you get the best deal you can. Know Where You Stand. Before you get too much further into the process take a full measure of where you are today. Get a copy of your credit report and look for any errors. Gather up your bank statements to see how much cash you have available for a down payment, closing costs and cash reserves. Gather Your Data. Start digging out your two most recent W2 forms from all employers and if you’re self-employed your two most recent federal income tax returns. If you haven’t yet filed your taxes for 2016 it’s time to think about submitting. Lenders will want your two most recent returns and it ca...

Did you get a surprise when you looked at your credit report? Did your lender inform you your credit score was just a bit low for the loan you’re seeking? In general consumers are fairly aware of their credit standing but may not know where their credit scores actually stand. Credit scores are calculated using an algorithm first developed by the FICO Company and are three digit numbers ranging from 300 to 850. Those with scores above 740 are considered to have “excellent” credit while those with scores below 580 are typically labeled “fair” or “poor.” When applying for a mortgage a lender requests a credit report designed for the mortgage industry and at the same time request a credit score. While most mortgage programs don’t specify a minimum credit score lenders do. And even one or two points off can mean the difference between a loan approval and a delay. For example, if a minimum credit score requirement for a loan program is 620 and the reported score is 610 there’s not a lot...

Just last year home values erased the equity deficit and surpassed the highest median home value set in 2006. Here in San Diego County we’re certainly no different and that means a return to the home equity loan marketplace. Homeowner equity is simply the difference between the current market value of the property and the outstanding loan balance, less associated closing costs. The difference is the equity that belongs to the owner. How do you become eligible to pull equity out of your property? The most common way is to simply sell the home. During a sale, the old loan is paid off and closing costs, including real estate commissions are deducted from the sales price and the net proceeds are delivered to the homeowner. However, for someone who just wants to tap into the equity of an existing home without the somewhat drastic measure as an outright sale, there are other, more agreeable options. A cash out refinance is an option. A cash out refinance replaces an existing mortgage ...

Are you looking at financial portfolio and noticing the amount of equity in your home? Thinking of pulling out some of that equity in the form of cash? As the value of a property someone owns so too does the amount of equity the person owns. The equity is the difference between the current market value of the property less the liens and closing costs associated with a new loan. There are three ways to pull out equity in your property, a HELOC, an equity loan and a cash out refinance. A HELOC is revolving line of credit based partly on the value of the home.  A HELOC transfers equity into cash and can be used over and over again. A HELOC will have slightly higher rates than other cash out programs but is reusable very similar to credit line on a credit card. An equity loan is a lump sum amount issued to the owners and can be taken with either fixed or variable rates. A cash out refinance is a loan that replaces an existing loan while simultaneously turning some of the equity in...

Are you looking at the historic low rates in your rear view mirror? You’re not alone. The lowest rates we’ve seen occurred nearly four-and-a-half years ago back in November 2012 while rates are indeed higher now they’ve held in a relatively tight range. Yes, they’re up, but now way, way up. However, if you’ve been waiting for rates to come back down so you can finally refinance your existing mortgage you might very well be out of luck on that one. Fed Chair Yellen and the FOMC raised the Federal Funds rate back in December of 2016 matching the 0.25% rate bump in December the previous year. Not only that, but Fed Chair Yellen recently commented we could expect three more rate increases in 2017. Now that rates are up and appear to be heading higher, what should you do? That really depends upon your motivation. Most people refinance because rates are lower than the one they currently have. If for example you have a 30 year rate at 4.75% and want to refinance to another 30 year loan, ...

What is a cast out refinance? There are two types of a refinance loan and both perform the same primary function: replacing an existing mortgage with a new one.  A refinance can be a cash out refinance or a rate-and-term refinance. A rate and term refinance is a mortgage that replaces an existing mortgage and changes the rate, the loan term or the type of mortgage. For example, a couple has a 30 year fixed rate mortgage with a rate of 4.75% and they want to refinance to a 4.00% rate. The newly refinanced loan changes the interest rate and reduces the monthly payment due to the new lower rate on the loan. The new mortgage pays off the old mortgage and typically includes the closing costs into the new loan. When refinancing a loan term that same couple could refinance from a 30 year loan into a shorter term loan such as a 10, 15, 20 or 25 year term. Shortening the loan term reduces the overall amount of interest paid to the lender although higher monthly payments might be the ...

Still renting and tired of it? Your noisy neighbors can’t seem to be quiet for any normal length of time? Your parents are telling you it’s time to stop being a renter and throwing your money away each month? Maybe your best friend just bought a condo and you’re thinking, “Well, if she can then I can too!” Buying a first home is an exciting experience and simply shopping for a home on the internet and comparing home prices and places to live takes on a whole new meaning. But the mortgage part, well, that’s not really something to jump up and down for, is it? We agree. Getting a mortgage isn’t won’t really get your heart pumping with excitement but for many it can also be a bit scary. For first time buyers, here are some financing basics you can use. Affordability is based upon current and future debt along with your gross monthly income. Lenders compare monthly credit obligations along with your future mortgage payment, including amounts for property taxes and insurance and compa...

Refinancing a VA loan is much like refinancing any other mortgage. However, VA loans do have a refinance option that conventional loans do not have. This option is referred to as a VA “streamline” and is a VA-to-VA refinance that requires very little documentation. No income or employment check, no appraisal required and no need for verification of assets. As long as the borrower is refinancing an existing VA mortgage into a new one and is either lowering the interest rate or switching from a variable rate loan to a fixed, the streamline program is available. And, just like a conventional refinance, borrowers with an existing VA loan can pull out some cash during the refinance process given sufficient equity. VA guidelines allow borrowers to pull out equity in the form of cash during the course of a refinance like any other loan but now the loan is not eligible for the streamline option. VA streamline loans do not allow for any cash out during the transaction but a VA cash-out do...

Real estate is one of the asset classes rarely mentioned during a planning session with your stock broker or financial planner. Usually during these reviews it’s based upon an allocation of funds, your age and when you expect to retire. If you’re in your 30’s you’ll probably be pointed more toward stocks and less toward bonds. Stocks are more volatile but provide greater returns over time compared to bonds. Bonds are not volatile, the return is guaranteed but the yields are paltry compared to a stock or mutual fund. As you head closer to retirement age your financial planner will suggest moving more funds out of stocks and into more conservative investments such as bonds. But what you won’t hear is real estate. Typically, anyway. But you should consider rental property. Rental property is a real asset that is secured. The asset will grow in value over time while each month providing a positive monthly cash flow. When considering a rental property in 2017 a little math is needed. F...

Millennials have officially taken over as the driving economic force today. As more and more baby boomers face retirement and are no longer in the work force it’s the millennial who will wield the purchasing power. This age group ranging from 18 to 34 or so which also means their buying power is beginning to mature. A new car, new clothes and even eating out and weekend entertainment is being paid for out of the millennial’s pocket. But what about real estate? Should millennials add real estate to their financial profile? Is it time to buy a home now and if so, why? One of the things millennials witnessed at an early age was the financial mess that occurred in the last decade leading up to about 2008. Mortgage lenders in their quest for making more home loans would create a new loan program that previously ineligible borrowers could qualify for. Lower down payments, reduced credit scores and subprime loans hit the market. At a very tender age they soon heard the news and saw repor...

Tired of renting? Did someone at work just buy a home and they can’t wait to close? Did you recently get bitten by the “home buying bug?” It happens at some point to all of us. Even if you’re not ready to buy your own home at least you’ve thought about it. But if you’re getting past the “thinking about it” stage to getting pretty serious about it, you first need to get an idea on what you can afford. At least what you can afford in a lender’s eyes. Lenders are required to make sure you can afford a new mortgage and they do so by comparing your monthly income with monthly debt and come up with a debt ratio, or simply “ratio.” In general, lenders like to see total credit obligations be no greater than 43 percent of your gross monthly income. This is a formula lenders use. Is it the same formula for you, however? Here are some basic tips to buy a house within your range. First, get comfortable . This is probably the most important tip. When you speak with a loan officer over the phon...

Manufactured housing has really come of age over the years. Linked to older mobile homes with wheels attached and a hitch on the front, manufactured homes today look like anything but a mobile home. In fact, manufactured housing has come so far it’s hard to tell the difference between a manufactured home and a traditional “stick built” property. If you’ve wondered about the prospects for a manufactured home but haven’t yet made the decision, here are three advantages of manufactured homes. Affordability.  Manufactured homes are simply less expensive compared to a single-family property. How much less expensive? On average, manufactured homes can cost anywhere from 35 to 50 percent less per square foot compared to a traditional home. When combined with regular financing the monthly payments are much lower compared with a similarly sized structure. If a standard 2,000 square foot home is listed at $300,000 then a manufactured home with all the upgrades could be found for half t...

This is an interesting question. It’s almost akin to the classic “Which came first, the chicken or the egg?”  Well, maybe not quite as common as the chicken vs. egg query but it is indeed important. When someone first begins searching for a home to buy certainly price is important but then again so are current market rates. Both have an impact but is one more important than the other? First, let’s consider the price of the house. A list price on a home will be similar to homes that have recently sold in the area and crafted by a real estate agent who has performed some research and arrived at a price suitable to the owner. But really it’s less the price of the home but more about how much down payment the buyer has. If someone is qualified to borrow $200,000 but they’re looking at homes listed at $1 million then there needs to be a down payment of at least $800,000. For a better example, if there is a home listed at $400,000 and the buyers have a down payment of $40,000, the l...

If you’re fresh out of college and in your 20’s you’ve got some decisions to make. You may have thought your tough decisions were over once you graduated but there are even bigger ones to consider as you get older. Even if you haven’t graduated with a college degree and working full time you will also face similar hurdles in life and as anyone over 50 will tell you, “You’re just getting started…get used to it.” One question more and more young people are facing is whether or not to buy a home at a young age or whether it’s better to rent. Yet there is no universal answer to this question. Yes, it can make sense to get a mortgage and no, it doesn’t make sense. It depends upon your personal situation. However, there are some questions you can ask to get you closer to your answer. Do you want to be a home owner? Do you? Owning a home creates more wealth than owning any other single asset over time. As property values increase over time, that value belongs to you. But owning a home i...

Getting your financing lined up when first beginning the home buying process is one of the first things that need to be done. You can speak with a loan officer over the phone who can guide you through the process and even pre-qualify you over the telephone regarding how much you might be able to qualify for. Further, you can submit a loan application to that loan officer along with supporting documentation and receive your pre-approval. A pre-approval means you’ve applied for a home loan and all that’s needed is for you to bring a signed sales contract for a property you wish to buy. One of the things that not only can confuse borrowers but frustrate them is shopping for a mortgage lender by making phone calls and getting various interest rate quotes. When shopping for interest rates buyers will soon notice that interest rate quotes are very similar from one lender to the next. That’s because lenders all set their mortgage rates each and every day on the very same set of indexes. ...