Finance Roll

In a media storm of: "big bad corporations shelter billions in offshore tax havens", one would think that you either have to be a "big bad corporation" or a "money-grubbing 1%'er with an overwhelming penchant for hiding money" in order to have an offshore bank account. Nothing could be further from the truth. Nearly anyone can and should utilize the services of an offshore bank.

Why would you want to keep your money in an offshore account you say? One of many reasons could be concern for domestic bank stability, and unless you've been under a rock for the last several years, you are likely more than a little weary of domestic bank stability. And as of January 2013, the FDIC is rolling back coverage on individual accounts to a cap of $250,000. This is likely not an issue to most of us, but what's the bigger picture here? What does this say about the solvency of the FDIC? How many near-simultaneous bank failures will it take to bankrupt the FDIC completely? What other policy changes are there that could; in the event of multiple bank failures, effect your hard-earned life savings?

You've heard about diversifying your assets, between stocks, cash, and hard assets such as gold and silver, but what about diversifying your banks? I'm not talking about opening an account at your local Savings and Loan and an additional account down the street with Citibank, I'm talking about diversifying your banks in different countries. Don't worry, I'm not suggesting you head out and convert half of your life's savings to Icelandic Krona, you can keep your money in US Dollars, just don't keep those US Dollars in a US Bank. Think about it, you wouldn't keep your entire life's saving in one company's stock, or one mutual fund with one investment company would you? At least I hope you wouldn't! (Bernie Madoff Investment Securities ring a bell?)

Many international banks offer great lines of product with fantastic rates of return designed specifically to attract depositors with US dollars that just don't exist domestically. Many of these programs are only available to account holders. Even if your credit rating has taken a beating in recent years, you may still be eligible for mortgage financing from your offshore bank when domestic banks won't even look at you. Granted, the money may be pricey and may have steep equity requirements, but when no domestic lending institution will even give you the time of day... any financing is better than no financing.

There are inherent risks with having your money in an offshore bank so take your time, do your homework. Just as you wouldn't put your money in a domestic bank that appears unstable, or is on the FDIC list of troubled banks, you probably would be well served to stay away from banks like the First National Bank of the Democratic Republic of the Congo. No matter what fantastic rate they offer you! Find a good bank, in a good jurisdiction. Want to know why Swiss banks look so attractive to wealthy account holders? You would think from listening to the talking heads on the major network nightly news programs it would be hiding money... think about that one for a moment: Would you consider a place that has been demonized on the nightly news year-in and year-out; and that is known by absolutely everyone, a good hiding place for money? So what makes you think these wealthy account holders aren't using the same logic? They didn't become wealthy by making mistakes with their cash, that's for sure. The number one reason for using a Swiss Bank is simple: they're really good at banking. In fact, they've been doing it for longer than the US has been the US, and are rock-solid stable. In fact, when was the last time you heard of a Swiss bank failure, collapse or a call for a bailout of the Swiss banking system?

And what about staying out of trouble with the IRS? Guidelines change all the time, so be sure to check, recheck and understand them thoroughly before sending your money to a foreign bank account. If you follow the guidelines, do your homework and report your offshore holdings, you can enjoy your offshore account hassle free for many years to come!

Buying a home with no money down can help you stop paying rent and start building equity. With so many programs out there for first time home buyers, you can find a loan that will fit your budget. Before signing any paperwork though, look at all your lending options. With online lenders, you can often find better financing than with your neighborhood bank.

What Buying a Home With No Money Down Can Do For You

A no money down mortgage can help you buy a home with little out of pocket expense. No money down can mean either no down payment or no closing costs paid up front. In either case, your rates and fees will be higher. But without the obstacle of thousands due at closing, you can get into a home easily.

Finding A No Money Down Mortgage

Many lenders, even sub prime lenders, offer no money down mortgages. The best source for loan quotes is online for easy access. You will want to look at the APR which will include closing costs. Even if those closing costs are rolled into the principal, you will be paying for them.

Most sites will have the options to check for a no money down loan. It will usually be a check box. If the option isn't available, send an email requesting a quote. Typically no money down loan rates are a couple of points higher than traditional loans.

Improving Your Home Loan Odds

No money down home loans increases the risk for financial companies. However, you can offset that risk be proving that you have the means to make payment. Large cash assets are what lenders are looking for. So you might consider increasing your savings account or CODs while applying for a loan.

Other factors, such as the housing market, your income, and credit history, will also affect your application.

Other Mortgage Options

While you may want a no money down mortgage, keep your options open. You may find a better deal by being willing to put down at least a small down payment. You can always tap into that equity with a second mortgage.

The other option is to finance your home purchase with two mortgages, usually held by separate financing companies.

I read several blogs on finance and budgeting, and the one thing they all say is that you must track what your money is doing. I have been doing this for quite some time, and I have developed a pretty good spreadsheet that has evolved over the years. I am planning on fixing it up and giving it away to everyone that signs up for my newsletter, so make sure you stop over at the box to the right and leave your name and email so you get it as soon as it is ready!

As a lead in to the release of my spreadsheet, I thought I would give you five ways you can work on getting your financials in shape for the new year.

Track Your Income and Expenses

Surprise! I bet you didn't see that coming. Seriously though, you can't hit a target you can't see. By keeping a spreadsheet (or money management program like Quicken) with all of your up to date finances in it, you can stop areas such as overspending before they get out of hand. This can also be a great motivator when you see those debt balances start dropping! Once you get a look at my spreadsheet you will notice that it tracks a lot of things such as your current ratio, income, expenses, taxes, debt, debt ratio, net worth, etc. Taking the time to update these numbers each payday really makes a difference.

Review Your Spending Habits

This is a bit of a tedious exercise, but a very useful one. For one month, write down everything you spend money on and I mean everything. If you buy a coke from the machine write it down. One of the ways I have found that is easiest to do this is to save every receipt and drop them into a box at the end of the day (if you don't get a receipt write it on a small piece of paper). At the end of the week, assign each receipt to a major category. The first month you should not vary your spending at all, just capture everything. At the end of the month, take some time and review what you spent your money on, and look for areas that might be out of control. Everyone has them, it might be the amount of money spent on eating out, or clothes, or just entertainment. After you have found your hot button, the next month whenever you are about to purchase in that category ask yourself if you really want what you are about to buy. You will find at the end of that month you will have probably reduced spending in that area. The next month, make a game out of it. See how much you can cut your spending, and at the end of the month take what you saved and actually save it. If you can continue tracking what you spend like this, you will drastically change your habits. Unfortunately most people drop this pretty quickly (me included).

Start Saving

I know everyone out there knows they should be doing this, but for some reason not many people act on it. I think the problem is that most people do not think they have any money left. So start off small. Find a place where each night you empty out your pockets or purse of all the change you collected during the day and keep it in a jar. Make that jar off limits, after all, how much money could be in there anyway? Once the jar is full, take it to the bank and put it into an account. Notice I didn't say count it, NEVER count it. The reason is that in reality there is much more in there than you think, and if you count it you will spend it. Just take the jar to the bank and tell them you want to deposit it, the worst that will happen is they will want you to roll it which you can do at the bank. Once you have done this for a couple months, then along with the change, start putting the dollar bills in there as well.

Stop Charging

Once again, this is some pretty common sense stuff that most people have problems with. If you do the math, your credit cards are sucking more out of your budget than you think. If you are only paying the minimum payment on a credit card, it will take you more than 10 years to pay off the balance if you pay on time. Don't even think about being late! The best way to do this is to get rid of them, cut them up, shred them, burn them, just get rid of them. If you want to keep one in case of emergencies (I don't really advocate this unless it is a charge card such as American Express that has to be paid off in full each month) then put a freeze on that one card, literally. Freeze it in a block of ice in your freezer and thaw only in case of emergency!

Set Financial Goals

Finally, set some goals in the financial area of your life. This isn't all about saving, find some ways to make extra money. There are plenty of ways out there where you can make a little extra money. One that I have come across that sounds good is West at Home. I have not tried this, but essentially you work as a call center agent from home when you want to work. If anyone has tried this or does on account of this post, let me know about your experience. Saving and cutting costs isn't near as fun as making more money, so go figure out how! As always write down your goals and make sure they are measurable.

So there you go, that should get you started in the right direction for the New Year. If you have some other tips on how people can make and save more money this year, please share them below!

For nearly 30 years, I have represented borrowers and lenders in commercial real estate transactions. During this time it has become apparent that many Buyers do not have a clear understanding of what is required to document a commercial real estate loan. Unless the basics are understood, the likelihood of success in closing a commercial real estate transaction is greatly reduced.

Throughout the process of negotiating the sale contract, all parties must keep their eye on what the Buyer's lender will reasonably require as a condition to financing the purchase. This may not be what the parties want to focus on, but if this aspect of the transaction is ignored, the deal may not close at all.

Sellers and their agents often express the attitude that the Buyer's financing is the Buyer's problem, not theirs. Perhaps, but facilitating Buyer's financing should certainly be of interest to Sellers. How many sale transactions will close if the Buyer cannot get financing?

This is not to suggest that Sellers should intrude upon the relationship between the Buyer and its lender, or become actively involved in obtaining Buyer's financing. It does mean, however, that the Seller should understand what information concerning the property the Buyer will need to produce to its lender to obtain financing, and that Seller should be prepared to fully cooperate with the Buyer in all reasonable respects to produce that information.

Basic Lending Criteria

Lenders actively involved in making loans secured by commercial real estate typically have the same or similar documentation requirements. Unless these requirements can be satisfied, the loan will not be funded. If the loan is not funded, the sale transaction will not likely close.

For Lenders, the object, always, is to establish two basic lending criteria:

1. The ability of the borrower to repay the loan; and

2. The ability of the lender to recover the full amount of the loan, including outstanding principal, accrued and unpaid interest, and all reasonable costs of collection, in the event the borrower fails to repay the loan.

In nearly every loan of every type, these two lending criteria form the basis of the lender's willingness to make the loan. Virtually all documentation in the loan closing process points to satisfying these two criteria. There are other legal requirements and regulations requiring lender compliance, but these two basic lending criteria represent, for the lender, what the loan closing process seeks to establish. They are also a primary focus of bank regulators, such as the FDIC, in verifying that the lender is following safe and sound lending practices.

Few lenders engaged in commercial real estate lending are interested in making loans without collateral sufficient to assure repayment of the entire loan, including outstanding principal, accrued and unpaid interest, and all reasonable costs of collection, even where the borrower's independent ability to repay is substantial. As we have seen time and again, changes in economic conditions, whether occurring from ordinary economic cycles, changes in technology, natural disasters, divorce, death, and even terrorist attack or war, can change the "ability" of a borrower to pay. Prudent lending practices require adequate security for any loan of substance.

Documenting The Loan

There is no magic to documenting a commercial real estate loan. There are issues to resolve and documents to draft, but all can be managed efficiently and effectively if all parties to the transaction recognize the legitimate needs of the lender and plan the transaction and the contract requirements with a view toward satisfying those needs within the framework of the sale transaction.

While the credit decision to issue a loan commitment focuses primarily on the ability of the borrower to repay the loan; the loan closing process focuses primarily on verification and documentation of the second stated criteria: confirmation that the collateral is sufficient to assure repayment of the loan, including all principal, accrued and unpaid interest, late fees, attorneys fees and other costs of collection, in the event the borrower fails to voluntarily repay the loan.

With this in mind, most commercial real estate lenders approach commercial real estate closings by viewing themselves as potential "back-up buyers". They are always testing their collateral position against the possibility that the Buyer/Borrower will default, with the lender being forced to foreclose and become the owner of the property. Their documentation requirements are designed to place the lender, after foreclosure, in as good a position as they would require at closing if they were a sophisticated direct buyer of the property; with the expectation that the lender may need to sell the property to a future sophisticated buyer to recover repayment of their loan.

Top 10 Lender Deliveries

In documenting a commercial real estate loan, the parties must recognize that virtually all commercial real estate lenders will require, among other things, delivery of the following "property documents":

1. Operating Statements for the past 3 years reflecting income and expenses of operations, including cost and timing of scheduled capital improvements;

2. Certified copies of all Leases;

3. A Certified Rent Roll as of the date of the Purchase Contract, and again as of a date within 2 or 3 days prior to closing;

4. Estoppel Certificates signed by each tenant (or, typically, tenants representing 90% of the leased GLA in the project) dated within 15 days prior to closing;

5. Subordination, Non-Disturbance and Attornment ("SNDA") Agreements signed by each tenant;

6. An ALTA lender's title insurance policy with required endorsements, including, among others, an ALTA 3.1 Zoning Endorsement (modified to include parking), ALTA Endorsement No. 4 (Contiguity Endorsement insuring the mortgaged property constitutes a single parcel with no gaps or gores), and an Access Endorsement (insuring that the mortgaged property has access to public streets and ways for vehicular and pedestrian traffic);

7. Copies of all documents of record which are to remain as encumbrances following closing, including all easements, restrictions, party wall agreements and other similar items;

8. A current Plat of Survey prepared in accordance with 2011 Minimum Standard Detail for ALTA/ACSM Land Title Surveys, certified to the lender, Buyer and the title insurer;

9. A satisfactory Environmental Site Assessment Report (Phase I Audit) and, if appropriate under the circumstances, a Phase 2 Audit, to demonstrate the property is not burdened with any recognized environmental defect; and

10. A Site Improvements Inspection Report to evaluate the structural integrity of improvements.

To be sure, there will be other requirements and deliveries the Buyer will be expected to satisfy as a condition to obtaining funding of the purchase money loan, but the items listed above are virtually universal. If the parties do not draft the purchase contract to accommodate timely delivery of these items to lender, the chances of closing the transaction are greatly reduced.

Planning for Closing Costs

The closing process for commercial real estate transactions can be expensive. In addition to drafting the Purchase Contract to accommodate the documentary requirements of the Buyer's lender, the Buyer and his advisors need to consider and adequately plan for the high cost of bringing a commercial real estate transaction from contract to closing.

If competent Buyer's counsel and competent lender's counsel work together, each understanding what is required to be done to get the transaction closed, the cost of closing can be kept to a minimum, though it will undoubtedly remain substantial. It is not unusual for closing costs for a commercial real estate transaction with even typical closing issues to run thousands of dollars. Buyers must understand this and be prepared to accept it as a cost of doing business.

Sophisticated Buyers understand the costs involved in documenting and closing a commercial real estate transaction and factor them into the overall cost of the transaction, just as they do costs such as the agreed upon purchase price, real estate brokerage commissions, loan brokerage fees, loan commitment fees and the like.

Closing costs can constitute significant transaction expenses and must be factored into the Buyer's business decision-making process in determining whether to proceed with a commercial real estate transaction. They are inescapable expenditures that add to Buyer's cost of acquiring commercial real estate. They must be taken into account to determine the "true purchase price" to be paid by the Buyer to acquire any given project and to accurately calculate the anticipated yield on investment.

Some closing costs may be shifted to the Seller through custom or effective contract negotiation, but many will unavoidably fall on the Buyer. These can easily total tens of thousands of dollars in an even moderately sized commercial real estate transaction in the $1,000,000 to $5,000,000 price range.

Costs often overlooked, but ever present, include title insurance with required lender endorsements, an ALTA Survey, environmental audit(s), a Site Improvements Inspection Report and, somewhat surprisingly, Buyers attorney's fees.

For reasons that escape me, inexperienced Buyers of commercial real estate, and even some experienced Buyers, nearly always underestimate attorneys fees required in any given transaction. This is not because they are unpredictable, since the combined fees a Buyer must pay to its own attorney and to the Lender's attorney typically aggregate around 1% of the Purchase Price. Perhaps it stems from wishful thinking associated with the customarily low attorneys fees charged by attorneys handling residential real estate closings. In reality, the level of sophistication and the amount of specialized work required to fully investigate and document a transaction for a Buyer of commercial real estate makes comparisons with residential real estate transactions inappropriate. Sophisticated commercial real estate investors understand this. Less sophisticated commercial real estate buyers must learn how to properly budget this cost.

Conclusion

Concluding negotiations for the sale/purchase of a substantial commercial real estate project is a thrilling experience but, until the transaction closes, it is only ink on paper. To get to closing, the contract must anticipate the documentation the Buyer will be required to deliver to its lender to obtain purchase money financing. The Buyer must also be aware of the substantial costs to be incurred in preparing for closing so that Buyer may reasonably plan its cash requirements for closing. With a clear understanding of what is required, and advanced planning to satisfy those requirements, the likelihood of successfully closing will be greatly enhanced.

A fast secured loan is generally going to cost you more than a secured loan that takes longer. While it will cost you less than an unsecured loan, the fact that you require it quickly generally puts up a red flag in the mind of the lender and that will cost you more.

A lender who thinks, why is this person not prepared to pay for this short term crisis on her or his own? is a lender who thinks the consumer is ill prepared to repay the fast secured loan as well. The higher the lender risk, the higher the rate.

One of the riskiest of the fast secured loan family is the title loan. Just as with payday loan, a car title loan is secured and fast and is marketed as a loan for emergencies. The reality is much grimmer, however, in that it is often the trap that puts the poor into an even worse cycle of debt.

A typical fast secured title loan charges well over 100 percent in annual interest, has to be paid within 30 days and is for considerably less than the cars value.

The worst case scenario for this type of fast secured loan - and happens far too often - is that the borrower loses her or his only transportation, and the means to get to and from work. Which, of course, considerably worsens the financial situation that brought the borrower to the title loan provider in the first place.

Most of these fast secured title loan providers will only lend money on a car that the borrower owns free and clear. Most target consumers that have bad credit, that are low income, that are elderly or military.

The way this fast secured title loan is written the consumer does not see the reality of the interest rate and the ultimate cost. While the consumer looks at the 30 day paperwork and sees that she or he is paying back 125 percent of what she was originally lent, the fact remains that figured on an annual basis this brings the interest rate to an annual 300 percent.

What happens more often than not, however -which makes it even worse for that debt-ridden struggling consumer - is that she or he is still badly in debt. The lender helpfully offers to roll over the debt for another month. As of the end of the first month, then, that consumer who borrowed 600, at that alleged 25 percent, owed 750.

Rolling it over puts another 150 on the charges. So now that same 600 has now put the consumer into debt with that lender for a total of 900. What now happens is the consumer is going to struggle even more mightily to pay that back. Each month she or he does not do so 150 is added to the cost.

Unpaid for one year, that original 600 fast secured loan could end up costing that consumer 1800. If a consumer cannot come up with 600 on her or his own, what are the chances she or he can pay 2400 back at the end of the year? The fact is that many cannot - and, for 600, they lose their vehicle.

While we are not suggesting that a fast secured loan is a bad thing, we are saying that the faster you need the loan the more wary you should be about the lender you choose.

A debt consolidation loan is one that takes your existing credit balances and rolls them into a new loan. Usually, the payment on the debt consolidation loan is considerably less than the total of all the individual payments you have been making. These can sometimes be a good way to regain control of your personal finances, but there are some points you should consider first.

Before you take out a debt consolidation loan, see if there is another way to handle your personal finances. Can you reduce expenses and make larger payments on existing debt? Could you and/or your spouse take a second job for the express purpose of paying down debt and restoring order to your personal finances? Are there other ways to raise cash, such as the sale of a boat that hasn't been in the water for years or a vacation cabin you never use?

You also need to know how much the monthly payment on your debt consolidation loan will be. While it is normally less than your total payments, if it is still out of reach of your personal finance picture, you are not doing yourself any favors by taking one.

If your personal finances can be restored, and debt eliminated, in a relatively short period, you might want to stay with the debts you have. For example, if your financial problems are due to paying for a child's last year of college, you can probably survive without incurring a debt that may have a longer repayment term than you currently have.

You will also have to exercise control over your personal finances if you take a debt consolidation loan. Old habits will have to be changed, or you can quickly wind up in even worse circumstances than you started with. One example is when people take out a debt consolidation loan, pay off their credit cards, and then run their balances up again. Now they not only have the same payments they couldn't afford in the first place, they also have a payment on the debt consolidation loan to deal with. If a problem with your personal finances has been chronic, no matter what you did, you need to be sure that you are willing and able to change your spending habits before you take out a debt consolidation loan. Otherwise, your personal finances will continue to be a shambles and your debt load will keep increasing until there are no options left except bankruptcy.

If you take out a debt consolidation loan, it is a good idea to close as many accounts as you can. Keep one bank card for emergency use only, and close the others. Expect to be deluged by enticing offers from the department stores, who want you to reverse your decision and keep the account open. They may offer you huge discounts on your next purchase if made with their card or several months of no payments and no interest. Stay strong, and follow through on your commitment to regain control of your personal finances.

A debt consolidation loan is not for everyone, or a solution for every situation. But for many people, it is the best way to restore some sense of order to their personal finances. It can also bring peace of mind to others, and that is something that cannot be bought.

Tough economic times require a steely determination to survive and a good deal of guile when faced with a significant amount of debt and a dwindling salary. There are millions of people all over the world feeling some sort of financial squeeze and most are racking their brains for a solution to the problem of keeping their heads above financial water.

Christmas time is a period where being a little short of cash for whatever reason can cause problems. You want to buy presents and so on and find it difficult to reconcile this extra demand on your finances. It is totally normal to feel this way.

But, what if you had a life with no money worries where you were the master or mistress of your own financial destiny. No mortgage, credit cards, car loans, store cards and so on. Close your eyes and really believe for a second that scenario is your situation.

You will let your mind and imagination runaway with you and see yourself buying that special item that you have always wanted like a car, a piece of art, a holiday, a new tv whatever you have always wanted you now have.

Really feel the emotion of having enough money to do what ever you wish in your life with no worries whatsoever.

The old adage 'money can't buy you happiness' is absolutely untrue because it does.

If you have been following this article your imagination should have given you a wonderful feeling of what life in the future could really be like for you and you loved ones.

There are many ways that you can get more money like buying a winning lottery ticket or a deceased relative leaves you a large amount of cash that you never knew they had. these type of things do happen but the odds are heavily stacked against them happening to you. That is not negative just the plain truth. You need to find a way of making just a little extra money at first by attracting money with little effort. This is hard to do but it becomes a lot easier when you know exactly how to do it. So its up to you do you just want to cross your fingers and hopes into an attractive business idea and wait for the money to start rolling in.

It may work for you but those sorts of opportunities tend to be the stuff of fantasy and what you really need is reality. There are very few of the world's wealthiest people who have got money this way. They understand that you have to learn how to attract money and work hard at doing it too.

If I said you needed a desire and by that I mean a focused desire to have more money you probably wouldn't know how to do that either. It's something that you also need to learn. It may work for you but those sorts of opportunities tend to be the stuff of fantasy and what you really need is reality. There are very few of the world's wealthiest people who have got money this way. They understand that you have to learn how to attract money and work hard at doing it too.

A laser targeted inner belief is what is needed to reach your financial goals and you can learn this very easily. The secrets of 'working' also need to be learnt and absorbed into the mind of the new financially savvy you, this skill alone will put you way ahead of other people.

Would you agree that if you set out to do something then you should do it well and see it through to its conclusion? No starting with the best of intentions and losing focus along the way. This crucial thought process can be easily learned as well.

What about industry, ambition, energy and perseverance? Qualities for success and money that you must have ingrained in your mind and fully understand.

Do you have the ability to help yourself? Do you have the brutal determination and awareness to end a money making project if it isn't working or would you stubbornly carry on regardless even if it wasn't working out and you knew it?

Focus is what you need to get money and as much as you want too. You will also need plenty of inner drive and focus as well as steely determination to succeed. It's better to be a master and King of one money attracting activity than having too many ideas and projects on the go and achieving with none of them. Deviate from what you are about to learn and fail.

Each and everyone of the skills mentioned so far and their attributes you will need to practice and understand to become wealthier and it's the people who read articles like this and do nothing that will lose out. Everything I have mentioned is a skill and discipline that you can easily learn and they are all contained in one simple free book. as we are concerned about making you richer the good news is this book is free.

P. T Barnum's classic book 'The Art Of Money Getting-Golden rules For Making Money' is a classic money motivation course that has been used by many of the world's most financially successful business people including the likes of Donald Trump and Sir Richard Branson. They attribute this old manuscript as an integral part of their money making learning and success. Branson started his empire in a telephone box in the UK and look at him now.

I really want you to embrace this book. In it Barnum sets out in easy to follow short chapters a total blueprint for making money and very specific instruction on how to do it. It comes in an audio book format, so no reams of paper and wearing out your printer either. Start 2011 with a real desire to get more money and improve your finances forever. this is an opportunity to learn how to get money and keep it and protect your future. Just go to my website and help yourself. You can download it instantly and it will work on your computer, iPod, Mp3 player and any other audio devices that you may have.

Remember to become successful at whatever you choose to do, you are going to need do something - take action and do it now as inaction is your greatest enemy.

Claim your download now of P. T Barnum's 'The Art Of Money Getting' at: http://www.selfhelpaudiolibrary.com/offer

Owning home during the last three years has been like fall into a gold mine. Values have just gone up, up and away.

If you are a homeowner you just can't stop smiling. The size of your home's equity may be matched only by the latest Power Ball total. But what about the first time home buyer or those who have a burning need for more space - the move up buyer?

Wages gains have not matched the increased real estate prices and that is putting new buyers in a tight spot. The law of market forces indicates that with fewer people able to buy a home there will be less demand and home prices will begin coming down, right? Wrong!

The building industry and booming home equity growth are about the only things driving the fragile U.S. economy. The government must keep the housing market healthy or risk being booted out of office. Bush is keeping the ball rolling just as Clinton did before him. Keep the voters passive in their snug new homes.

Enter the 40 year mortgage.

An ad in the financial section of a major city's newspaper shouts "Ask About Our 40 Year SmartChoice Mortgage!" The advertisement goes on to say you have your choice of an adjustable rate of 1%, or a fixed rate of 1.75% for 5 years.

Look what that means. You can stroll in and borrow $400,000 for a monthly payment of just $1,012 with zero closing costs! Hurray, everyone can again afford to buy a home. Yeow, this ad even says they will loan you 107% of your new home's value.

Shouldn't we get a little nervous when we see that kind of ad? Won't the 40 year loan allow people who really can't afford a home to shoulder that financial burden? And if we may be a real estate bubble as some claim, doesn't this make buying highly leveraged real estate down right dangerous?

Until now forty-year mortgages have been rare because lenders couldn't sell the darn things to investors through the government-sponsored enterprises Fannie Mae and Freddie Mac. Those 40 year loans had to be held by the lenders, tying up their money for a long time. Now that's changed.

Both Fannie and Freddie are passing out cash for those babies like they are running their own money printing presses. Wait a minute, the government IS running the presses. Some would say, just like Parker Brothers prints Monopoly money.

It's easy to see that the primary advantage of a 40-year fixed-rate mortgage is to make monthly loan payments more affordable and avoid the risk of an adjustable rate mortgage. The 40-year fixed rate also appeals to buyers with small down payments.

Now stop and look at the numbers. You will see that the difference in payments may not be that significant. Take a $200,000 mortgage financed for 30 years at a fixed rate of 5.75%. It would have a monthly payment of $1,167.15. Stretching the loan term by an additional 10 years (40-year mortgage) only reduces the monthly payment by a little over $100 to $1,065.78.

There's more: Some of benefit of those lower monthly payments is offset by the higher interest rate that comes with the 40-year loan. Rates on a 40-year fixed are often one quarter to one half of a percentage point higher than a traditional 30-year fixed-rate mortgage. Loans with longer terms carry higher rates because of the added time frame where a default may occur and because lenders require compensation when their money is locked up for the longer time.

One of the benefits of the recent increase in homes values is that homeowners turned much of their equity into cash through refinancing. Homeowners spend that cash and that money keeps our economy going. With 40-year loans real estate equity grows at a snail's pace a home's value appreciates at a normal rate of 3% to 5% yearly. For the first-time home buyer who plans to eventually move up to a larger home, this slow pace of equity accumulation is a liability.

Now add zero closing costs to the mix. In most areas, closing would run about $2,000 in fees to refinance a $200,000 mortgage. Appraisal - $300. Settlement Fee - $300. County recording fees - $400. Underwriting fee - $300. Processing fee - $200. Title Insurance - $750. The list goes on.

Without zero closing cost programs, the home buyer would have to wait until interest rates reached a level low enough to justify the closing costs. Remember that closing costs must be low enough to allow the buyer will recoup those costs in a reasonable period of time. If he plans on being in the home for five years and it takes seven years to recapture the closing costs it's a bad deal. We must admit homeowners don't see to be very concerned about such things.

No body gets something for nothing, especially with mortgage lenders. A zero cost loan program is financed by a loan with a slightly higher interest rate. You can juggle the numbers all you want, but the borrower always pays and the lender always earns.

The 40-year mortgage will allow our economy to keep rumbling along this bumpy road for at least a short trip. Let's hope we don't wind up at a dead end.

The internet has long been home to 'get rich quick schemes', but it now seems that the serious face of investing is getting wise to the potential of the web. So forget about the 'I made a million in a week and you can too' emails that turn up in your inbox. Turn your attention to the world of stocks and shares. Not only is there a wealth of information about the whys and wherefores of trading in stocks and shares on the internet, but it is also possible to start trading online.

It isn't just the big spenders who are catered for either. Even if you are a complete beginner, or just have a small portfolio, there is plenty of online information and help out there. Before you start worrying about what's available online, it is worth taking a closer look at yourself and your preconceptions about investing in the stock market.

Day Trader

For most people, the image of the 80's city investor springs to mind: sharp suits, fast cars, and million dollar deals struck during the blink of an eye. The reality is far removed. While there is no escaping the fact that with the necessary combination of funds and nerves you can assume this role. The day trader who risks all on the hourly fluctuations of the market is not the norm. The reasons for this are simple. The vast majority of day traders don't get rich quick. In fact, the majority don't make a profit at all.

If you want to invest your money in this way, then the services offered by the internet are ideally suited to it, with real time quotes and execution available. However, there are also services geared to more sober traders, such as long term investors and savers looking for an alternative to leaving their hard earned money in a bank account accruing a safe, yet modest interest.

While the elements of risk are not removed by playing the long game, investing in shares over a longer period tends to be a safer option than diving into the frenetic world of the day trader. But it's not all about high rolling stocks and shares.

Financial Planning

The first thing to do is work out what you want to achieve by investing on the stock market. This may sound like a stupid statement, because you want to make money, right? Obviously, that is the driving force, but 'how much, how soon and how safely?' are the questions you need to ask yourself.

At this stage you don't need to be familiar with all the possibilities, because all you are doing is setting some guidelines covering how much you have to invest, how much of a risk you can take with the money and when you would like to see a return.

Where to Begin

Before you jump into the daunting world of buying and selling shares, build up a useful set of resources. The financial world speaks a language of its own. Make sure you understand the glossary of terms.

It is vital that you understand both the markets and the companies you are investing in. You really can't have too much information on these matters. Fortunately, providing information is where the internet excels. Visit the websites of your local stock exchanges.

While there is a dearth of financial services websites around, finding the right one for you and your needs is not always that easy, and you get bogged down by the dazzling array of services offered by impressive websites all vying for your patronage.

Direct share dealing in the past was quite limited. But with the advent of the internet, this has all changed. Alternatively, you could avoid the actual markets altogether and pop down to your local computer games store and grab a copy of the latest wall street trader game that provides another risk free way to get the feel of trading.

Have you ever had a young child come home from school Friday afternoon with a birthday party invitation for the NEXT day? When our daughter was young that seemed to happen a lot. That last minute scramble for a birthday present was always a hassle and also seemed to cost us more for a present than we really wanted to spend.

I've got some ideas here that could solve that little problem for you and also help you to conserve and save money, and consequently help the status of your family and household budget. This is just one of a number of financial strategies that I'll be rolling out for you that should help you learn how to budget just a little better and help your personal finance picture improve. Good goals for us all!

As I alluded to above, this particular idea is good for families with children who constantly receive invitations to friends' birthday parties. The hassle of that last-minute shopping trip plus the cost of buying something we really didn't have time to shop for made us decide to set aside one box in our bedroom closet. We put that box in a place that was not accessible by our children. Into that special box we put cool stuff we purchased during the year just for future, unplanned gift-giving.

As we were out shopping we would always come across some great deal on different toys and other cool items that we just knew would make great gifts for some child's birthday, or even for a family member's birthday or a Christmas gift, later in the year. We didn't limit ourselves to only children's gifts and would pick up things that could be used for office parties, neighborhood gatherings, and even for adult birthday and Christmas gifts.

We'd take advantage of a great sales price or special clearance, and buy great gifts as we came across them. Sometimes we'd buy more than one of something, if they were particularly good items, and would just spread out giving those gifts over a period of time.

We immediately placed those items we bought into our "future gifts" box and always kept that box stocked with great stuff. This was also where we put those odd office, and sometimes family, Christmas presents we'd received that we really didn't like and knew we'd never use. We kept a lot of things we wouldn't use from cluttering up our closets and shelves this way. We'd just tape a note on those items about who'd given it to us so we didn't give that gift back to that same person. That would be a real faux pas and a doubly embarrassing moment for everyone!

Just assure that your children are instructed not to scope out your "future gifts" box because you just might, as we often did, use the items saved in that box as gifts for your own children. Putting the box somewhere children just can't reach is probably the best idea.

We saved a goodly amount of money over a year's time by keeping this gift box stocked and ready in an instant to produce just the right gift for an unexpected, or unplanned, occasion. Very rarely did we end up with items we never used for gift giving.

I hope these ideas have put you on the right track to considering small things that you can do, which can add up to big amounts, to improve your personal finances and help to protect your precious family financial resources!

Cash back credit cards are one of the latest crazes to sweep the personal finance industry. In addition to that, it also provides some host tools for the management. The group attributed much of the growth in popularity to inflated demands arising from recent energy price hikes and the increases in the average costs of food. Checking your credit report annually can help you catch mistakes and fraud before they wreak havoc. The claim can be sought resulting in mortgage claims, credit agreement claims, secured loan claims. When it comes to the best management, what is noticeable in the beginning is not a guarantee for the safety and stability of your future. Learning at a young age is important.

You will know that you are benefiting from truly cheap credit cards if you check the way in which everything is going to look once the standard rate starts rolling the ball. The issue of preliminary rates practiced with quite a number of offers of cheap credit cards may be rather confusing. If you are need in some professional advice for your situation, then you can go ahead and search for consulting experts. We have access to multiple subjects and we are sure to find some of the best experts to provide us with the much needed assistance, imparting valuable knowledge. The advent of the World Wide Web has brought numerous advantages. As you can see, the range of subjects covered is incredibly diverse and you can resolve more than one problem by using such a website.

Today, many years after the Internet was introduced, we have the liberty to do our shopping online, inquire about banking services and get assistance. Since unsecured loans are based on your credit and repayment history, you will have to convince lenders that you can handle in an organized fashion. A current account mortgage can, therefore, provide a borrower with many features and paying off their mortgage as soon as possible. It is a sensitive subject for many people so advisors often visit people in their homes. The second most popular category is news, followed by health care and medical information, religious and spiritual material, games, business and personal finance information and sports hobbies. in that order. Loan Offers For those in needs, the site suggests some great loan offers that are available at different amounts and different rates of interest.

There are other areas of personal finances that are just as important like investing and building your personal wealth, but those are topics that you can concentrate on when you have the basics covered. But insurance policies are the only real way to make sure that your loved ones and your personal finances will be protected in the face of the worst problems. Instead, it really is all up to the individual and their own personal finance skills in terms of what makes them better or worse than the next person. In terms of managing money, there is really no adequate set of rules that determines what gender is better at managing their personal finances. Sometimes, our ignorance about the world of personal finance leads us to obtain loans that are a costly proposition. Although financing a home can be supported by your personal finances, sometimes it does make sense to finance the project especially if your home itself can finance the renovation. Too often potential home buyers will spend more time telling everyone what type of house they plan to buy and in what area, but not enough time researching their personal finances, the cost to buy, the location or the real estate market.

The more confident consumers are about the economy, the more likely they are to spend. I know of one personal finance [http://www.ebooks-mall.org/finance/] professor who teaches his class using just the book The Millionaire Next Door, a cheap book you can buy for under $10 used any day on Amazon. There are computer programs available which can help you manage. The high interest rates on personal loans at a finance company might get people to thinking. But if it helps to expand your knowledge, or if provides you with just one tip to go out and improve your knowledge, these articles may indeed proved a worthy aim. If you are operating a business under your name, and have not filed any official paperwork with the government or with lawyers and accountants.

Improving Your Financial Position

With The Bank of England predicting the UK's economic recovery will be slow and protracted this current recession is certainly proving to be a difficult time for the UK's small and medium size businesses (SMEs).

SMEs are very important to the UK's economy as they employ 13.5 million people around 59% of the UK's total private sector workforce - according to the Department for Business, Enterprise and Regulatory Reform.

With no clear end to the recession in sight it is vital that UK SMEs are equipped to survive until the recovery finally arrives. This series of articles is aimed to provide practical advice for UK SMEs to help them cope with the recession and hopefully becoming stronger and more successful.

This first article looks at how businesses can get to grips with their finances to make sure they know exactly where they stand.

Get control of the business finances

Now is a good time for businesses to take a fresh look at their financial records and update them so that they know exactly where the business is financially. Only by having accurate records will a business know if it has a cash flow issue plus with proper records it become much easier to create appropriate budgeting plans.

Using these financial records businesses can then make rolling three month financial predictions taking into account their expected income and expenditure. These predictions can be used to plot the businesses progress and highlight any financial issues that need attention before they become real problems.

Reduce spending

Businesses need to cut any unnecessary spending especially on projects that don't directly generate revenue. Review all business spending to see where savings can be made, but don't be too ruthless the aim is to cut unnecessary spending not all spending.

Reduce late payers

Late payments are always an issue for any business, but during recession it can become a real problem. The reality is it's all about timing and priority, people tend to pay by priority order and when money is available so if you're business isn't near the top of the list or invoices are received when funds are low it's likely you'll be paid late.

Giving incentives for prompt payment is one way to gain priority as can offering flexible payment options. This also allows businesses to target period when money is more likely to be made available.

In addition the UK government has recently launched a new initiative called the Prompt Payment Code . The idea is that companies who sign up to the code pledge to pay their small suppliers on time. The code is also offering clear guidance on payment and complaint procedures.

Getting a loan

Sadly UK banks seem to be less than willing to lend to small businesses. However, things may be starting to improve due to a new government scheme. The Enterprise Finance Guarantee Scheme will support up to £1.3bn of new lending by banks and is aimed at small businesses.

The scheme is designed to enable firms to secure loans of between 1,000 pounds and 1m pounds, repayable over 10 years. The government guarantees 75% of the loan, with the banks covering the remaining 25%.

Most businesses are eligible for the scheme except for those in the agriculture, coal and steel industries.

As with any loan businesses will still need to make a good case for themselves, explaining why they need the funds, and showing that they will be able to pay it back.

Even if a business doesn't require a loan it's always worth keeping a good relationship with the bank as the situation could always change.

Tax

Small businesses with temporary financial problem due to the recession can apply to HM Revenue & Customs (HMRC) to delay their tax payments. Businesses can apply to delay payments including VAT, national insurance or staff income tax.

There are no penalty fees or surcharges; however, an interest payment will have to be paid for each month of delay. The interest payments vary, but a typical level is 4.5%.

The Business Payment Support Service programme, has a dedicated telephone support line - 0845 302 1435. Most callers will get a decision within 10 minutes; however, some may have to wait up to three or four working days.

These are just a few steps businesses can take to improve their financial position for more detailed and expert financial advice SMEs should consider hiring the services of experienced business management consultants like Hedley Basford.

In the next article we will look at how businesses need to adapt to the recession and how they can win more sales and new contracts.

Many Americans today want to start their own business and do their part in strengthening the US Economy. The challenge usually is not Desire but Financing. Banks are very restrictive on their lending today. Even if you get a loan from a Bank it may not be enough funds. I have spoken to many people about new businesses and asked, why not use your 401K funds? Most did not  know that using 401K funds for themselves would be an option.

Yes you can use your 401K plan to invest in your own business without incurring taxes, penalties and Interest. The money can be in your hands in as quick as 3-4 weeks, using the right companies and plans.

I often ask, why invest in other companies when you can invest in yourself. There are many who have been laid off, downsized, or given a severance. Use your severance and your 401K roll over for a small business start up or franchise.  You could even use this found money as a salary until you get your new business or franchise off the ground. This type of financing, is creative, easy to use and provides you the security you may be looking for.

Using Retirement funds as a valid method of funding a business is valid, as long as you know how to do it, follow IRS guidelines and properly administer the plan. Compliance is the key, and you should not just jump into this alone. The best thing to do is have a basic understanding of how the conversion of your 401K funds into usable cash happens, and then let an expert handle the rest.

The basics are; you take your 401K funds and roll them over into your New companies plan. Your new company retirement plan invests in your business and in return receives stock. You now have a new customized retirement plan to help you build a successful business and protection on your new wealth. Your plan can be used with a SBA Loan as well. This is safe and proven, and I believe needs to be used more today! Pre Tax dollars can now be used to fund your new business venture. You can set aside tax deductible savings up to $200,000 per year, using this type of plan. Your new business can gain equity and value quicker and you have more safety.

There are companies that specialize in this type of 401K conversions and I have my favorite. There are some fees that you will incur and I suggest that your 401K plan, be at least $50,000.00. Fees are around $4500-$6000 depending on which company you use to administer your new plan.  Thank you and good luck on your new business.

Sure, you didn't think when you signed your mortgage papers that you'd ever be in the position where you might lose your home. But, sometimes life throws curves that we don't anticipate and we find ourselves swamped with unexpected medical bills, out of a job, or faced with the income shattering consequences of divorce. There's usually very little standing between the average homeowner and their worst nightmare - foreclosure. There are however, several things that you can do to avoid losing your home. And with planning and perseverance, you should be able to make it through even the toughest financial crisis and still keep your home.

For the most part, your mortgage lender will probably be willing to work with you. After all, they'd rather have your money than an empty house that will sit on the market for months costing them money instead of making money for them. Most lenders understand that even the best customers can fall behind and have devised ways to help you get back on track. So, first and foremost, if you are behind on your mortgage payments, communicate with your lender. Don't make the mistake that so many people make and avoid making the call. Tell your lender up front, and as soon as possible, what is going on so that they can help you.

Most lenders have relatively similar programs to help you avoid foreclosure. The first option is usually a simple repayment plan. The lender will generally allow you to spread the repayment of your missed payments over the next few months. You will need to agree to a definite payment plan and there are usually some small fees involved, but this is likely the best option for most people who are capable of catching up and are just a payment or two behind.

Some lenders will allow you to modify your loan if you fall behind. The most common way to do this is to roll the missed payments back into the loan balance and reamortizing the loan. This gets you back on track right away and allows you to pick up where you left off. There's also the option of the short refinance or the hard money refinance. The short refinance will allow you to refinance your loan while the lender forgives some of your mortgage arrears. The hard money loan generally involves receiving a high interest loan from a private lender that will see you through until you sell your home. The hard money option is usually not for those who are going to keep the property.

Finally, if you're sure that you will not be able to either catch up on your mortgage arrearages or you are not certain that you are going to be able to stay current if your mortgage company helps you out, you may want to consider discussing a short sale with your mortgage lender. In a short sale, the lender approves the sale of your home for less than the outstanding loan amount. The mortgage company will keep any proceeds from the sale and will forgive any remaining balance. In this option, you will receive no profits from the sale of your house but you will also not owe the lender anything once the process has been completed.

Your mortgage company has many options designed to help you avoid foreclosure, whether you intend to keep your home or not. The key is to act quickly and discuss your financial situation honestly with your lender as soon as you see that paying your mortgage has become a problem - preferably before you miss your first payment. Generally, the earlier you begin proactive discussions with your lender, the better the outcome.

We've all heard about the Phantom of the Opera and the movie Phantom Tollbooth, but how about the Phantom Car? Not the Rolls Royce Phantom either, but one of thousands of driver-less cars that exist only as memories in the mind's of their owners yet are still listed as assets on the balance sheets of finance companies.

The circumstances that contribute to the metamorphosis from physical to phantom car ownership are the total loss of a vehicle combined with the failure of the insurance settlement to cover the entire outstanding loan balance. In other words, you're stuck making car payments on a vehicle that no longer exists.

Although no statistics are available for the exact number of phantom cars floating around, it's safe to say that just about everybody knows, or has heard of, someone is this predicament.

The principal causes of phantom car ownership are a combination of rapid vehicle depreciation and increasingly liberal loan terms.

Between 2000 and 2008 the average weighted maturity of a new car loan increased from 52 months to almost 63 months with many of these same loans of the zero down variety. What this leads to is an increase in the total amount of interest paid which in turn delays the build up of equity in the vehicle. So on a typical 5 year loan the principal remains virtually unchanged for the first year of the loan.

When the absence of equity build up is coupled with the instant devaluation, or depreciation, that occurs when a new car is driven off the dealer's lot, a deficit develops between the actual cash value of the car and remaining loan balance.

This condition is especially prevalent during the first two years of car ownership and it would not be unusual if the owner of a vehicle owed five or six thousand dollars more than the vehicle is actually worth.

If a total loss should occur during this time period when insurance coverage lags behind the actual cash value of the vehicle, an unprepared consumer could well be driving, or not, a Phantom Car.