What's The Best Way To Get Financing For A Car Purchase?

Dear Money Guy,

My car is having major issues, and I'm looking on buying another one. I don't have the cash to pay for one in full. So I'm looking to see what my options are for financing.

My credit isn't too bad, but I just started a new job and I don't have much money to put down as a down payment.

My question is: what's the best way to get financing to purchase a car?

Thanks,

- Rex
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Dear Rex,

Ah, don't you know the power of the internet? With just a few clicks, you can find hundreds of auto insurance companies offering their service.

But with so many too choose from, which company do you go with?

Well, the best option is to get a recomendation from a friend. If that's not something you feel comfortable doing (I wouldn't go that route, personally), then you should do your due diligence with research.

What company would I recommend?

Well, especially with your situation, I would suggest MyCreditTree.com. They are the ONLY company that you see advertising a 99% loan approval rate. And with the crisis going on in the financing sector (it's getting harder and harder for people to qualify for car loans), a bold claim like that should at least be given a glance. And you'll get an answer in 60 seconds!

You can visit the site by clicking this image:

They are a great company to deal with, especially if you have blemishes in your past or credit that might not be so hot at the moment. And the best thing about them is that you'll get your answer in about 60 seconds. Some companies take days to get back to you.

Do you know someone thinking about buying a car? Would you mind doing me a favor and letting them know about my blog. Click Here-->

Thanks for your help,

The Money Guy

What Questions Should I Ask A Lender Before Getting A Loan?

Dear Money Guy,

I'm looking into getting some financing set up so that I can pay off some credit card debt, as well getting a new roof put on my house.

My question is, what questions should I ask the lender before getting the loan?

- Steve M.

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Dear Steve,

Personal loans are those that can be used for a variety of uses including vehicles, home repairs, vacations, education, and many more endless possibilities. Personal loans can be obtained from banks, financial investors, and other lending institutions including those found on the internet. It can be confusing to decide who to conduct business with. There are some questions you need to ask potential lenders before making any type of commitment on a personal loan.

First, it is important for you to understand that as a customer or potential customer, you have the legal right to ask lenders questions. Do not conduct business with any lender who is not willing to answer your questions in detail. Be wary of lenders who tell you not to worry about the details or who try to rush you through the process. Both of these should be red flag indicators that something isn’t right. Quality lenders who have nothing to hide are more than happy to answer any questions you have about personal loans.

Too often, customers are hesitant to ask questions out of fear that the lender will look down on them or that they will be wasting the lenders time. As a consumer, you need to prepare yourself with the proper information to make informed decisions. This is very important in the area of your finances.

If it is not clearly stated, find out the maximum amount the lender offers for personal loans. This way you can find out if the lender will even be able to meet your needs based on the amount of money you are looking for. Next, ask questions about the personal loan terms. This will help you determine if the payment is going to fit your monthly budget.

Most personal loans are decided within just a few days. Ask the lender what verifications you will need to provide as well as how soon they can have a decision after you provide all the necessary documentation. The verifications will vary but should include ID, income, tax returns, and a completed loan application.
Many personal loan lenders will push the loan rate at you, especially if they are offering one that is lower than the competition. However, you should ask them to show you exactly how much the loan is going to cost you. Lenders can give you an itemization of all fees of the loan. You will want the information to compare with other lenders information.

Don’t forget to ask the lender about prepayment. If possible, you will want to pay your loan off early to save on interest you pay over the life of the loan. Some lenders will charge you a payment for prepayment. If you plan to pay the loan off sooner than it matures, then do not work with a lender who requires prepayment penalties as part of the personal loan offer.

With security issues being so huge in our society, inquire how the lender will be using and securing your personal information. You want their guarantee that your name and personal information won’t be sold to other solicitors. If they do, expect to start getting telemarketing calls and lots of pre-approval offers in the mail. Most lenders will use encryption and a firewall for their computer storage of your personal information, but ask about it anyway. It is also a good idea to ask them how they inform customers if they feel security has been breached. Good lenders have such plans in place for your protection.

Taking the opportunity to ask questions from potential lenders before making a commitment to a personal loan takes time and effort. However, you will be glad you did. It is important that consumers arm themselves with the best possible information as this is the only way to make important decisions based on having the proper knowledge. I can’t tell you how many people have learned the hard way that asking questions makes a world of difference when it comes to financial issues.

Well, I hope that helps answer your question.

Regards,

The Money Guy

What Is The Average Price Of Life Insurance?

Dear Money Guy,

After watching the devastating effects that a death can cause, I am very interested in setting up a financial safety net in case anything were to happen to me. My brother didn't have life insurance, and his wife and kids are left in a real bind (he was the sole breadwinner of the family).

So my question is, what is the average price of life insurance?

- Mark J.

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Dear Mark,

Sorry to hear about your brother's death and the hardship it will cause for your sister-in-law and family. Having life insurance can sure help in these type of situations. As for you question, "What is the average price of life insurance?" Well, that's a bit complicated.

You see, there are so many factors that go into determining the amount of premium you will be required to pay, that coming up with an "average" just doesn't work.

Here are some things to consider:

1. Term life insurance is less expensive than whole (permanent) life insurance.

2. Smokers have to pay more for their life insurance premiums.

3. The older you are, the higher your monthly premiums.

4. Whether or not you have pre-existing medical conditions can drastically affect your premium payments.

5. The greater the amount of coverage you need, the higher the premiums.

And the craziest thing about all of this, is that each life insurance company uses different factors to come up with their life insurance rates. So your best option is to get free life insurance quotes from a variety of insurance companies, and compare those quotes to each other.

To save you some time, I have found two life insurance companies that provide free quotes online. They just need some basic info from you to process your quote (name, email address, age, gender, etc).

Here are two life insurance companies I recommend getting quotes from to compare:

1. NetQuote




2. Mysurance



After you complete and receive your free quotes, you'll have a much better idea of what the average price of life insurance is for you specifically.

Regards,


The Money Guy

Mortgage How Much Can I Borrow

Dear Money Guy,

Look, I'm no dummy. With the housing market in the dumper, now is the perfect time to buy a home. I have been a renter for far too long. Such a waste, really. But I was just never in the financial position to be able to buy real estate. Either my credit wasn't good enough, or I wasn't working at my job long enough to qualify for a loan program that would get me into a home. When it came to a mortgage, how much can I borrow never crossed my mind because I knew I didn't qualify for anything.

But that has changed over the last few years. I have stayed with the same employer for over five years, and am making more now than I ever have before. I also worked really hard on getting my credit score above 670 (thanks mostly to this product that I bought called Credit Secrets Bible).

I am ready to take advantage of this housing marketing and buy my first home.

My question: with a purchase mortgage, how much can I borrow?

I really need to know the answer to this question. I can't wait to start looking at homes.

- Peter N.

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Dear Peter,

You are absolutely correct. As a potential buyer, the housing market hasn't been this good in years. You're smart to try and take advantage of this opportunity.

Now to answer your question on the purchase mortgage, "How much can I borrow?"

Many lenders use a front end ratio to determine how much of a loan borrowers can get. The magic number is 28%. What this means is that lenders tend not to give loans where the monthly housing costs (mortgage payment, insurance, and taxes) is greater than 28% of the borrower's monthly income.

So if you are bring home $4000 in gross income each month, then your maximum housing costs cannot exceed $1120 per month (giving you roughly a $170,000 loan on a 30 year loan at 6%).

But honestly, the internet makes things so much simpler. By answering a short questionnaire, you can know exactly how much mortgage you can borrow. The great thing about these quotes is that they are free, quick, and can be done online at your convenience.

Here's a reliable lender that you have heard that provides this service:



You can do further research, but Lending Tree is unique in that they pass your information to a pool of mortgage companies (who compete for the ability to work with you). So by filling out this one online form, you can get a number of no-obligation free quotes at once.

Hope that helps. Good luck in house hunting!

Regards,


The Money Guy

Refinancing Mortgage Rate

Dear Money Guy,

I bought my home a few years back when the real estate market was hot and interest rates were at 30 year lows. Oh yeah, at the advice of my mortgage broker, I got an adjustable rate mortgage.

This was great when I got it, but now it's killing me. I am not very skilled at mortgages and finance. Is a refinancing mortgage rate the same as a home purchase rate? Meaning, is it a totally different process to refinance a home as it is to purchase one?

I know I sound naive. But I really need to refinance my mortgage.

My question: what is the refinancing mortgage rate?

Thanks in advance for your answer.

- Paul C.

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Dear Paul,

Don't feel bad. Mortgages can be confusing even to those in the financing and real estate industries. That being said, the loan process for refinancing and purchase a basically the same.

Refinancing tends to have much fewer requirements because you are generally using the equity already established in the home to back up the mortgage.

Getting a purchase mortgage is much more riskier, and so there are many additional steps that are often bypassed in refinances (ie. work history, monthly income and expenses, down payments, etc).

There really is no "refinancing mortgage rate." The interest rate for the mortgage you will be getting will based off of a variety of factors including loan program, credit history, and how much equity you have built in the property.

The best way to know what your interest rate will be is to get a free quote. There are many mortgage companies that can provide you with a free and quicky online interest quote.

Here's one company that I recommend getting a FREE online quote from:



Although there is no refinancing mortgage rate, I really hope that you haven't paid out too much unnecessarily with the raise in your adjustable interest rate. Adjustable rate mortgages have hurt far too many individuals. Getting a fixed rate mortgage can stop the bleeding, and allow you to be able to save hundreds of dollars each month.

Regards,


The Money Guy

What Is The Average Price Of Life Insurance For Senior Citizens

Dear Money Guy,

My wife and I are in our mid-sixties (in terms of age), and I hate to say it, but we don't have life insurance policies. I know that we should, and I am getting more and more worried about it. I asked my wife, "what is the average price of life insurance?" but she didn't know.

Going through death is difficult enough without having to be concerned with the financial disaster is causes. My wife means the world to me, and I want to make sure she has a good life if anything should ever happen to me.

Question: What is the average price of life insurance for senior citizens?

Looking forward to your response.

- William P.

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Hello William,

Don't let anyone tell you otherwise: it is never to late to get life insurance. Just the costs of a normal funeral can run between $3000 to $15,000. Ouch!

But that's nothing compared to the long term effect that death causes. If you are the only one bringing in income, death can be devastating to the loved ones you leave behind. Good job on finally getting some coverage.

What is the average price of life insurance for senior citizens?

Coming up with an "average" price is kind of difficult, but there are some things to keep in mind.

Being a senior citizen, your monthly premiums will be at the top of the scale. Why? Because there's a much greater chance of something happening to a person in their sixties, as opposed to a person in their twenties. Life insurance is a business based off of probability.

The greater the probability of something happening to you, the more in life insurance premiums you will pay. Factors like age, smoking habits, and pre-existing medical conditions can drastic influence what you'll pay each month.

Your best bet is to get a few free quotes from life insurance companies, and then compare against each other. Many times the insurance company can give you a quote instantly.

Here are two life insurance companies that provide you with free quotes online:

1. NetQuote




2. Mysurance



Once you get your quotes back, compare the financial payout you would get and the monthly premiums you are responsible for. You may be very surprised at the difference.

Regards,


The Money Guy

How Much Can I Borrow For A Mortgage?

Dear Money Guy...

I am so damn sick of renting an apartment! Each month when I give my landlord the rent payment, my blood boils because I will never see that money again. I know that if I had my own home, that money will at least be building up some equity for future use. So my main goal right now is to buy a house.

But I have no idea how much I can borrow for a mortgage. I have rented my entire life (sad, I know), and have no idea how the home buying and mortgage process works. My credit is decent, I make about $50,000 per year, and my other bills come up to about $1000 a month.

My question: how much can I borrow for a mortgage?

Thanks in advance,

- Jason T.

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Jason,

Good to hear that you are thinking about purchasing your own home. Besides the financial benefits that you will get from being a homeowner, the emotional impact can be just a strong. I feel good knowing that my home is MINE.

How much can you borrow for a mortgage? Well, let me make some assumptions first. I am going to assume that you have been employed at the same place for over two years, have a good credit history, and can come up with 20% to put down on a home.

When it comes to determining how much of a mortgage you can borrow, most lenders calculate something called the front end ratio.

The front end ratio is the percentage of your income that will be used for your monthly house payment (principal, interest, escrow, insurance, etc). Most mortgage companies will cap this percentage at 28% of your pre-tax income.

What this means to you?

If your salary is $50,000 gross a year, then that means that you are making $4166.67 per month. By using the front end ratio (28%), you should be able to get a loan whose monthly payment is $1166.67.

Now, how much the total loan size will be will be dependent on the interest rate that you get. So let's say that you get an 30 year loan with an 6.0% interest rate. The total amount of mortgage that you can get is just over $194,000.

Some things to consider: I didn't include property taxes or homeowners insurance into the calculation. So please keep that in mind when determining the max amount you can borrow.

The best way to answer the question "How much can I borrow for a mortgage?" is to fill out a free, no obligation quote with a mortgage company.

Here's one company that can give you an accurate answer :




Once you get the quote back from them, you'll know exactly how much house you can get. A lot of people start looking for homes BEFORE they research how much they can realistically borrow. I wouldn't recommend doing this because generally people find that they can get much less how than they initially thought.

So all that time looking at houses (that they can't even afford) is wasted. Find out how much of a mortgage you can get FIRST, and then go house hunting. If you get a pre-qualification or pre-approval letter from the lender, even better.

Regards,


The Money Guy

I Need A Payday Loan Immediately

Dear Money Guy,

Holy crap I'm in a heap of trouble!! I think I need a payday loan immediately! My landlord wants about $500 in his hand by tomorrow from me, or he's going to evict me from my apartment. I have worn out my welcome with my friends and family, so borrowing it from one of them is out of the question.

I was searching online for some possible solution when I came across an advertisement for payday loans. From what I understand, they will lend you the money now, and take it right out of your checking account when you get paid next. I have a job, so that's not the problem.

My issue is that I need the payday loan right now. Not a week. Not even a few days. I need the money by tomorrow.

So my question is: I need a payday loan IMMEDIATELY, will the payday loan companies be able to make that happen?

- Kent L.

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Dear Kent,

I feel for you, brother. I have been in a couple of those financial nightmares in the past, and I vividly remember how scared I felt (especially at the prospect of losing your home). Payday loans may be able to get you through this rough patch.

Can you get a payday loan "immediately"? No, not immediately. Although you are in a hurry to get some money, they are still a financial institution that needs to verify that they will get their investment back.

That being said, there are a few payday loans that specialize in getting your loan approved and cash in your hand in under 24 hours. I have listed three payday loan companies that provide this speedy service.


1. PayCheckToday.com





2. Secure Money Store





3. Team Quick Cash




Using one of these companies should get you past this incident. But do yourself a favor: start saving for an emergency cash fund that you can use the next time an unexpected crisis occurs (and you are not sitting there with your head in your hands thinking, "I need a payday loan immediately to get me out of this jam").

Regards,


The Money Guy

Hard Money Loans In Chicago

Dear Money Guy,

Man, I'm in a true cash crunch. I need about $1000 as soon as possible. One of my friends told me about a company that does hard money loans in Chicago (I live just outside of the city). But when I think of "hard money," I think of loan sharks and broken legs for not paying on time. Is it still like that?

Should I even contact those companies that offer hard money loans in Chicago?

- Randall M.

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Hey Randall,

Although hard money lenders face much more regulation nowadays, it's still not an option to be used unless it was the absolute last resort. So no, I don't think that you should consider getting a hard money loan in Chicago (or in any city for that matter).

The potential risks associated with hard money loans would not be your best option. Besides the incredibly high interest rates and the excess points on the loan, the speed at which you can find your owing more and more if you don't pay the loan back in time is truly frightening (and perfectly legal).

If all you need to come up with is $1000, a much better option for you would be getting a payday loan. These are easy to qualify for, can happen online, and you can have your money in as little as 24 hours. And because of the way they set up the loan, it's much less likely that you will default on it (and end up paying unnecessary fees).

Here are three payday loan companies that I recommend to my readers:

1. PayCheckToday.com




2. Secure Money Store




3. Team Quick Cash




Hard money loans in Chicago? No, you are placing yourself at risk for no reason. To get a quick $1000, I'd recommend getting a payday loan. It accomplishes what you need to happen, without the incredible risk associated with hard money loans.

Regards,


The Money Guy

Loans for African American Women

Dear Money Guy,

I am a young African American woman who will be thinking about purchasing a home in the very near future. I can use all the help I can get, and a family friend mentioned the possibilities of special loans for African American women. Owning my own home has been a dream of mine for years. It's there are resources available to better my chances, I'd like to know about them.

So my question is, are there any loans for African American women?

- Rhonda P.

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Hey Rhonda,

Because of laws protecting minorties, the elderly, the handicapped, etc, you can't set up loans for African American women only. And this is a good thing: a financial decision like a home loan should be based on hard numbers, and not the particular race or creed of the borrower (be it white, black, or any color in between).

If you do happen to see loan products where you need to be a particular race to qualify for it (ie. loans for African American women), I would stay far away from them because they are already violating certain laws.

So who can provide loans for African American women?

One company that I recommend is LendingTree. What they do that's different than other mortgage companies is let finance companies compete with each other to provide you with the best loan terms.

This works out great for borrowers because this competition results in loans with better rates and terms than normal.

Try them out for yourself, no obligation of course. Whether you are looking to get a new loan to purchase a house, or curious about whether you can refinance into a better loan situations, you owe to yourself to spend a few minutes at LendingTree.

You can visit them here:



Loans for American American women is just not an option. But that doesn't mean that there aren't good loan opporunities available. You just got to know where to look.

Regards,


The Money Guy