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Going through the home mortgage process can be fraught and tricky with a lot of obstacles. If you are looking for a home and don't know where to begin, then keep reading because you will need to know how to prepare yourself to get approved for a mortgage. Read on for valuable home mortgage tips.
Know how much you can afford to put towards your home mortgage. Do not rely on the lender to tell you the amount you qualify for, causing you to borrow the maximum amount. Try planning your budget and leaving some room for unexpected expenses. This is usually the case when you buy a home. You can use banking calculators to determine how muc
GSE reform and whatnot.
There is a lot of unclear thinkingabout Fannie Mae and Freddie Mac, so let's make some lists. There are three main choices for how they can work:
You can have a government agency (or two, or 10) that packages, standardizes and guarantees mortgages.You canhave anindependent company (or two, or 10)that packages, standardizes and guarantees mortgages.You can have nobody packaging, standardizing and guaranteeing mortgages.
The status quo in the U.S. is number 1; Fannie Mae and Freddie Mac are wards of the state, guaranteeing mortgages with the backing of the government and giving all their profits to the Treasury. Before 2008, the U.S. system was sort
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Investors got a nasty shock Friday morning when they found out that the long-awaited Brexit vote in the U.K. had gone against them. Stocks had soared Thursday in hopes that voters would choose to remain in the European Union, but in the ending tally, 52% of U.K. voters chose to leave the EU. As a result, stock market around the world plunged. Based on current futures trading, the U.S. stock market will follow suit with a substantial drop of around 3% when it opens this morning. Already, several sensitive stocks are getting hammere
As the world today facilitates online transactions which are seamless and uninterrupted, giving us access to variety of products at our fingertips, it becomes imperative that our financial transactions like banking, investments and insurance also take the same route. This is for the simple reason that online transactions are more convenient and avoid hassles of paperwork and numerous visits to offices and hubs. From the point of service delivery, the service providers also promote it as it helps in minimising costs and better monitoring.
Today, online transactions are becoming prominent in India as they are convenient, faster and cost effective. Customers shopping online can avail various facilities such as comparing the price of different products, view product features and ratings by other customers, etc. Online transactions are becoming popular in online shopping, e-commerce and insurance. The growth is mainly driven by the young generation who prefer to go online for almost all services and products. More over, today's tech-savvy generation and multifunctional devices are also major contributors to this growing trend.
Looking at the transition of banking transactions and investments from traditional to the online space, it brings us to the next most important financial tool i.e., insurance.
The traditional channels of product distribution in the insurance business comprise of the tele-callers, branch walk-ins, or sales through channel partners such as banks, agents, etc. While the agency channel involves costs of training the agents, paying the commission, tracking their business and negating fraudulent selling and legal issues, tele-calling too involves recruiting and training executives/agents and eventually maintaining them. This is where the importance of offering insurance services online comes into picture.
Online insurance transactions will not only help the insurance companies reduce their operational cost by 20-25%, but they will also provide a platform for customers to compare the price and features of similar products. A latest study shows that by the year 2020, online transactions in insurance are expected to grow 20 times more of what the current level is.
Customers are attracted to this facility as it offers pre-purchase, purchase and renewal services. Another feature offered on the online space is an aggregator website which helps customers to decide on a product by comparing the price and features of various similar products.
In an online transaction, there is no paper work involved and the entire conversation on the transaction is recorded as per insurance regulator Irda guidelines and the same is treated as a valid proposal form. These transactions are monitored and audited by Irda regularly, keeping a constant check on the business transactions.
Inspite of all the technological advancements, there are customers who still prefer agent services, even though they are aware of the benefits of online transactions. This can mainly be attributed to lack of infrastructure and lack of pre and post purchase service. Some customers are intentionally dependent on services of corporate agents as they want to keep their entire financial planning and management with one intermediary who is also involved in their overall financial planning and management. Also it is advised to keep records of online transactions and make the family members aware about the same.
Thus, even though the initial move towards online selling of financial products is building up, it surely does have a lot to catch up on as compared to the intermediary mode of selling. Looking at the pace in which our country is progressing in the technological field, this difference will soon dissolve and vanish.
The writer is head of general insurance distribution, Geojit BNP Paribas
Given the current state of the economy, people are doing everything they can to stretch their dollars. This is necessary to be able to make purchases for essential items, while still having a place to live. The following personal finance tips will help you to get the most out of the limited amount of money that you have.
Buying used can save you a lot of cash. Cars for example, lose up to 20% of their purchase price, just by signing on the dotted line and driving off the lot in it. By purchasing a car that is a couple of years old, let someone else pay for that depreciation. Without the hit to your equity, although you will still have a low mileage warrantied car.
Our own personal financial situation is something that is always on our minds. It seems that some people have a knack for keeping their's in order, while others tend to struggle. Even though some have it easier or more money to work with, everyone can have a good financial life if we just know how to. This article has tips that can teach you solid money management skills.
You should never risk more money on a trade than you can safely afford to lose. This means that if you lose any money it should not have the potential to destroy you financially. You have to make sure to protect any equity that you might have.
Rewards credit cards are a great way to get a little extra someth