3 Mistakes Made by First Time Home Buyers
Posted on August 27th, 2010
If you are a first time home buyer, then it is obvious that you’ll make a mistake. That’s because you may be overwhelmed to buy your new home for very first time and making mistakes at this moment is natural. You can avoid making mistakes only if you know about them. Following are few of the commonest mistakes that first home buyers usually make.
Buying More Than 1 House
Don’t buy more than one house because it will bury you under a heavy burden of mortgage loan. Even if you qualify for the mortgage it doesn’t mean that you will bear its expense for years, such as taxes, house payments, and insurance etc. You sho
The Beauty of a Handwritten List
Posted on August 27th, 2010
When I was in college, I stumbled upon a study method that always resulted in an “A” when I used it. It centered around taking notes in class, then rewriting those notes. I found that the more I wrote, the better I could remember. Writing things down by hand allowed me to dictate my future.
Some believe that writing a list trivializes and oversimplifies but in my case, a list made things come alive (it still does). Can you imagine going to the grocery store to purchase items for a new, complicated recipe without having a list? You
Roundup and Link Love: End of Summer 2010 Edition
Posted on August 27th, 2010
Yeah, I know. Summer officially ends September 20th or so, but when the kids go back to school, let’s face it: summer’s over. We’re caught up in back to school-itis. Here are some great articles and posts I read this week. Check ‘em out!
Democrats, Republicans, and the Federal Debt Since 1979 – you might be surprised.
Lowest Paying College Degrees – going in with your eyes open if you choose one of these degrees.
Is College Still Worth the Debt? – hmm, maybe. I think it depends on how much debt and how much you can expect to earn with your degree.
How To Finance Your Degree The Smart Way – debt isn’t your only option! Be sure and check
Types Of Mortgage
Posted on August 27th, 2010
At times, you might get caught in situations where you would need to look for a mortgage. You would want mortgage as a debt instrument to secure your loan from the collateral. However, to get help with this matter you can look for several different mortgage products. There a number of mortgage products available in the market, each with their set of advantages and disadvantages. However, the mortgage product simply depends and differs on the basis of repayment terms. Let us take a look at the different types of mortgage products given below.
1) Fixed Mortgage
The most common mortgage product used and applied by many in the market is the fixed mortgage product.
Let Family be Family, Leave the Lending Business to the Banks
Posted on August 27th, 2010
I remember when I was in high school and Friday night rolled around. As most 17-year-olds, I was as broke as an old clock. And, WOW, what $20 could buy in 1985. So like most young kids do, I asked Banco Padres (the parent’s bank) for $20 on a regular basis. And it wasn’t a loan for $20, because if it was then I defaulted on every single one of them.
So when is it time to stop asking family and friends for money? It’s my opinion that you should never, ever ask anyone other than a bank or some other form of official lender for money, ever. Here’s why…
- Most “loans” are paid back under the terms of a promissory note. Borrowing dough from mom and dad is not. It’s paid back under some loose assumption of terms, which often leads to misunderstandings and hurt feelings. And nothing makes Thanksgiving dinner more uncomfortable than the elephant in the room, which is “the guy carving the turkey owes me $10,000.”
- Co-signing is a temptation, which is fraught with peril. Co-signing for a loan or anything for that matter is the financial equivalent of getting married. You are officially connected and getting disconnected, which might seem really attractive, is next to impossible. Lenders love two liable parties instead of just one.
- “He who gets gypped has the memory of an elephant.” Notwithstanding the fact that I’ve now mentioned elephants twice in this article, the quote rings true. I can’t remember who gave me what at my wedding, but I sure can remember the folks who gave us nothing. It’s human tendency to remember these things and nothing is worse than the constant memory of getting ripped off, by a loved one.
- Save the lending to the lenders. Lenders are expected to be cut throats. They’ll report you to the credit bureaus, hire collectors to track you down, and might even sue you for delinquencies. Do you really want to put your loved ones in that position?
Here’s my suggestion, if you are seriously thinking of letting someone borrow money, just let them have it. That way there’s no expectation of getting paid back so there are no hurt feelings when the checks don’t roll in. But even then I’d think twice. You’re enabling irresponsibility by letting someone borrow or have money, plain and simple. True example, a buddy of mine’s father in-law borrowed $100,000 from my buddy’s father. He did this under the guise of saving his home and business. Of course after he renewed his country club membership with a sizable chunk of the money it became quite obvious that he had no intention of handling the money as he had represented.
Let the banks be banks. You be a friend or relative…and neither the two shall (or should) meet.
Lessons from the Gilded Age, Part 3: Parties
Posted on August 26th, 2010
Today we’re going to party like it’s 1897. So, pretend you’re loaded. No, I mean with money. Though alcohol fueled many of the Gilded Age’s most deliciously decadent moments. Like the evening when former president Ulysses S. Grant was so lit up at a party in New York that he stuck the lit end of his cigar into his mouth.
No, I mean pretend you’re so loaded that you can drop $8.5 million on one big blowout ball, just to show everyone else in society that you could outdo Caroline Astor, as Cornelia Bradley-Martin did. Then, when the press denounces you for this outrageously self-indulgent abuse of privilege, you move to England. But not b