Benefit From Loans?

A same day loan isn't suitable for everyone, of that there can be little argument. It's a specialist form of borrowing for specific instances where there is a certain amount of urgency involved. With many of the restrictions you'd find on a bank loan lifted, they are available to far more people than most other forms of credit too. So who would benefit most from a same day loan?

Rejected for a loan elsewhere

If you are in dire need for a little extra money and have no other options available, a payday loan is often something of a saving grace. It can help you to avoid getting into further strife, with lenders being more obliging than the average bank manager.

This is simply because they have a less restrictive approach to lending. Salary tends to be a key factor in securing funds and not the more personal financial issues (credit history being an obvious example) that many others utilise. Therefore you can still get cash from a reputable source, albeit at a slightly inflated cost, in your darkest hour.

In need of cash quickly

A major issue faced by many applicants of a personal loan is the time it takes to complete and process the application. If you're lucky it may be done within 24 hours; however, in all likelihood you could be waiting days for the money to land in your account. Unfortunately if you're in a major rush, this isn't a great deal of use.

Alternatively, many payday loan providers will not only estimate same day delivery of funds, but actually guarantee it. Therefore everything can be neatly sewn up within a few short hours, or even sooner in some cases. As mentioned, this can be hugely beneficial and could make the difference between getting a vital repair carried out or missing a mortgage payment. Therefore in a time critical situation, don't hang around waiting for answers, look for a payday loan where you can get a near instant response.

Those seeking a short-term solution to a potentially long-term problem

Many of us will have, at one stage, received a bank charge for exceeding an agreed limit or failing to meet a direct debit payment. It's not particularly pleasant and it certainly isn't cheap. The big issue though is that these one off charges can quickly build up. As not only will you often pay a fee, but then a daily interest charge or fee for the entire duration that an account is in arrears. This all mounts up.

Worse still you can then find yourself in the next month and find yourself in the exact same situation - essentially wasting all your money on covering charges. This can be a self-perpetuating and cyclical problem that is difficult to get out of. However if you take pre-emptive action disaster can be averted.

Just as explained previously, a same day loan will be in your account in an instant. Therefore if you can see trouble on the horizon - perhaps your account is low and you have a bill coming out the next day or another loan repayment is due - then get yourself a loan. It won't be cheap per se; however it will be far more manageable and should help you to avoid any ongoing credit damage. It might not be the perfect solution but it could certainly be the lesser of two evils.

So, as long as you're careful and weigh up all of the factors, there are a fair number of reasons for considering a same day loan. It won't fit every situation, but is well worth considering when you're up against it - financially speaking.

Loan Modification Program Is Not Working ?

If you are wondering why the Loan Modification Program is not working here is the answer:

1. Underwriting: using underwriting guidelines that are obsolete, e.g.

When calculating COMMISSION income you should not use the same method that was used before the economic collapse (taking the two-year average, or the year to date average). In this type of economy you should use the average of the last 3 months and allow for another 10% decline in commission income from that, until we are certain the economy is improving.

When modifying a loan, many do not qualify because when their income is calculated on a year to date income, their debt to income will look lower than it actually is. Even though their commission income is decreased the average income will show higher than the actual current income. This is how:

If you were making $3,000 salary plus $4,000 commission per month the first 3 months of the year your pay-stub would show $21,000 which is the equivalent of an average income of $7000 per month. But, in April if the company lost clients due to the economic conditions, and your commission has now dropped to $2500 instead of the $4000 you were used to earn, your pay-stub at the end of June (6 months) will show 6 x $3,000 + 3 x$4,000 + 3 x $2,500= $37,500 for the six months, which makes it $37,500 / 6 = $6,250 average monthly when in reality your actual income now is $3,000 + $2,500= $5,500

Those lost clientele will not come back when the economy is in bad shape, things will get better only if the economy gets better.

How does this effect a loan modification?

For the Government to approve a loan modification your housing to income ratio has to be over 31%. Housing ratio is the total of your monthly mortgage payment(s) plus your property tax, plus home insurance, plus home owners association (if any), plus Mello Roos (if any) over your monthly income.

e.g.

Mortgage payment $1,670.00

Property tax $165.00

Home insurance $45.00

Mello Roos $55.00

Total $1,935.00

If we take this housing and divide by the old way of calculating income $1,935/$6,250= 30.96% your housing ratio will be 30.96% which is less than the required 31%. This means you can't qualify for the Loan Modification. But we know your income is not the same as it was 3 months ago, now it is $5,500 instead of $6,250. In this case, if they use your actual current income the result would be: $1,935/$5,500= 35.20% which is higher than the 31% required for qualifying for the loan. So your loan should be modified and your mortgage payment has to come down to $1,450 from 1,670$ per month.

2. Attitude of Employees: Although there are a few employees who treat the borrower with respect and understanding, many of these lender employees have no clue that their job is to help these borrowers and that by helping these borrowers they are actually helping their banks, their employers. They treat these borrowers with an attitude, forgetting that many of those borrowers were and are much smarter, educated and more successful in some instances than they will ever be, it is just that they became victims of circumstances beyond their control, circumstances in most cases created by the very financial institutions they are working for. Most of these employees have no clue or are lost in the number of programs there are and have no idea of how to match the borrower with the right program.

3. No Common Sense: In many instances, most banks and their employees have lost their ability of identifying a make sense loan and the potential of loss of everything both for borrower and themselves. For example: a borrower who has been an excellent client of the bank and has a proven history of making his payments on time for years in the past, but has fallen victim to the current economic conditions and has had a reduction in his income; if he is willing to keep the home, and make a payment, as much as he can, per month to avoid foreclosure or a short sale; It is the banks best interest that it facilitates the situation and allows the borrower to remain in that house. The alternative is for the house to be sold in a dead market at a much lower price that does not even cover the balance of the loan.

In these situations, everyone is a loser. The home owner for losing his home, the bank for

collecting less than it is owed, the neighborhood because of flooding the market with more

available properties for sale for the limited amount of buyers, causing even further

deterioration of the home values.

4. Government: I don't think I even need to tell you about the government. Our government officials are worried more about their chairs than the country, have become more hateful than constructive, more partisan than negotiators, more complainers than creators, more dependents than providers. Our competition is winning not because they are better; they are winning because they are using what they have learned from us: educating their people, building their infrastructure, caring for the weak, rewarding success, running a country; things we have forgotten.

5. Know-it-all Leaders: Our leaders, regardless of what they say about listening to their constituents, feeling their (constituents) pain, understanding their situation, open to their suggestions, they all seem to be know-it-all persons. When our leaders start listening to the guy in the street who is really hurting, who knows what's causing his pain, who knows what would help him, then we'll have the real solutions that work because they are coming from the real source and not from some emotionless, heartless statistic that could be translated according to your party's ideological benefits.

6. Time: The time it takes for a bank to process a loan modification is so long that sometimes the frustration kills the applicant, it makes you feel like a football being tossed from this department to the other to another, repeating the same information to one person to another and another as if your information keeps changing while holding for the other person. Some people would rather give up than continue with the process. It is a shame.

The situation is very serious. I am an optimist by nature but with the ways things are now with this government, congress and upcoming elections, things are looking pretty bleak. Whether you are making your payments on time or not you are losing, if not your house you are losing its value.

Your Bank Will Be Your New Best Friend

The year 2012 is bringing new perks and benefits for the Bank customers because the banks this year will be rewarding those customers who would do all their banking transaction like mortgage, checking, credit cards, deposits etc from the same bank. If not then the customers might also be charged penalty. Alex Matjanec, the co-founder of MyBankTracker.com says that get ready to become friends with your bank. Even if you think the banks are in a situation of limbo.

As a result of this most of the banks are trying to implement new strategies so that its customers put all their money like that of savings, loans under their roof only. If the customers do so they might get some extra privileges like free wire transfer, free checking etc.

You should be able decide how many banks to use and prepare yourself to pay any number of monthly fees like the account balance fees, online banking fee etc. The Region for instance, is in the middle of ongoing restructuring of our accounts to fee eligible as said by the bank officials. It is in the process of cross selling of new initiatives. A senior official of the Bankrate.com disclosed that, right now all the major banks are busy in increasing their revenue from the already existing customers by offering them perks and rewards.

This strategy is known as relationship banking; it includes offering and cross-selling of numerous financial services and products to Customers so that revenues can be generated from them. Like for example if you have a checking account which you overdrew, the bank will charge penalty fee, if you're using a credit card, an interest will be charged on its usage. If it's a mortgage, the bank charges even more interest. These are sources from where bank earns its revenue.

Although this concept of relationship banking is not new but most of the customers don't care much about it, but this year the impact of revenues from the banks will be felt by many customers from both the small and the big banks. The competition is tough amongst the banks and hard for them to afford the convenience they provide like the ATM, wire transfers and other banking products. If the customers break their relationship with a bank and go elsewhere it's a loss for them. This becomes even more tedious when you have multiple relations with the bank other than just the Savings accounts.

Benefit from Home Rate?

Getting the best home loan is highly important if you are looking at moving in the near future. Getting onto the property ladder is highly advisable as soon as possible as if you are renting then essentially you are losing money that you will never get back. As soon as you get a property you are only required to pay back a loan, but the good news is that at the end of it you will have something to show for it - a property that will retain its value and that will prevent you from ever needing to spend money on rent again.

The difficulty is of course in affording this and it can be hard to get onto the property ladder when all the properties available are so very expensive. You shouldn't just rush into a loan though, take your time and shop around and you will be able to find one that is suited to you and that gets you the best possible deal. Here we will look at how to get the best home loan rate.

The first secret to getting the best home loan rate is to start looking early and to leave lots of time to look around and compare quotes. Look online and call up various loan companies and tell them your details so that you can compare what's on offer and make an informed decision. While one company might offer the best home loan rates for one person, another might be better for you as the rates will be based somewhat on your circumstances - your credit rating for instance etc.

Another tip is to make sure that you make sure you have the best possible credit rating. This credit rating is partly what will be used to decide how much your loan will cost and this will look at your previous debts etc and ascertain whether you are a safe bet or whether you are likely to struggle to pay back the loan. The more confident they are that you will be able to pay back what you owe, the cheaper rate they will offer you.

To increase your credit rating you need to be able to demonstrate that you are able to pay back loans. The first and best way to achieve this is by quickly paying of all existing loans that you owe. This means paying off any credit card debt, any overdrafts and any car loans as quickly as possible. If you can't do this, then something else that can help is to get loan consolidation. Here you take out one larger loan and use it to pay off all of the smaller loans you owe. This then looks to the lenders as though you have payed back lots of debts and so it can on occasion improve your credit rating.

If you have no loans to pay off, then use a credit card in order to take out small loans each month and then reliably pay them back on time to demonstrate your ability to manage your money. This is another good reason to leave yourself some time before taking out the loan as this process can take a little while.

There are a range of companies that offer the best home loan rates. It is best to look around to compare home loans.