Mortgage Insurance Coverage for Tough Times

If you are currently servicing a mortgage, what would happen in the event you lose your job or have to take time off work due to illness or injury? Under such circumstances, making your monthly mortgage payments would be difficult if not outright impossible. However, there is no cause for worry since mortgage insurance coverage can protect you in rough and tough periods of life. Mortgage insurance for covering payments is an affordable option that means your family members do not have to acquire a new loan or wipe savings and retirement accounts, you have worked so hard to accumulate this amount of money it is only reasonable to try and secure it. Therefore think about acquiring a mortgage insurance coverage as it has many benefits. Find out about it online, there are many companies, that offer good deals that are very affordable. You might think you don’t need it now, but if something happens in the future, it can save your future finances.

Mortgage insurance coverage

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What are some financial products offered by banks?

Financial products offered by banks

Financial products offered by banks are made keeping in view the financial needs of the general population. But there are very few Financial products for the suddenly single. The financial challenges for suddenly single can be really demanding. In the case of divorced singles, the income goes half, but the expenses remain almost the same. In the case of death forced widows and widowers Also managing finances changes a lot. The financial advisors say that emotions should be kept in control by the forced singles. The good news is that the new financial products offered by banks are being made to suit the needs of the forced singles. Special services are being offered to convert a joint account to an account being controlled by an individual. Also, the mortgages are tweaked to suit the suddenly single. If you cannot afford the house, it is better to get it foreclosed, and this kind of advice are offered by banks after much financial analysis after the separation or death.

Financial products online: Why you should only ever compare them, not buy them

financial-products-online

With internet access becoming important for business, financial products online have become an alternate reality. It is really good to compare financial products online, but should you buy it? Well, financial products are not that simple that you can just buy it with a click of a button. Of course, many finance companies are putting their products for sale online, but it is not wise to buy it online. First reason is that financial products need to be read through carefully, and have some clauses that are secret. Would you share your bank statement online with somebody you know only by a website? Is leaving banks for online apps happening really soon? The data says otherwise. Most of the financial transaction from banks happen physically through checks and cash, and online banking and mobile banking has just picked up. Another reason is that online financial products cannot be trusted at the present moment. Technology has to yet be robust enough to make it safe. IT laws are also not in sync with the financial laws, which make buying financial products through the internet really tricky.

The relation between credit rating and loan eligibility

Credit rating and loan eligibility - The relation

Credit rating and loan eligibility are closely related. But first, you must know one thing, that higher credit rating points will increase your chances of getting a loan. Rating points show the consumers ability to pay back debt. However, what is the exact relationship between a credit rating and loan eligibility is a question which needs special attention. First, we should know what are the various points on which credit score points are based. The points are –

(1) Payment History which carries 35% weight. It takes into consideration the past record of payment. If the customer has paid their past loans they are likely to pay in future too. The points in this category are lost if your loan goes into foreclosure or you file bankruptcy.

(2) The amount owed 30% weight. Just owing does not make you lose points. Owing too much on too many accounts can decrease points in this category.

(3) Credit history length with 15% weight. If you have a long credit history of paying on time , you will get bonus points for that.

(4) Types of credit taken 10% weight. The more different types of credit you have the healthier your credit score will be.

(5) New credit 10% weight. Taking too many new credits can lead to a drop in the credit score. NZ banks turn down customers over ‘minor’ credit problems was in the news recently. When a further investigation was done it was found that the news had exaggerated the issue and the bank was right in being sceptical.

Although it may seem annoying to the everyday person looking for a loan this formula is put in place for our security as well as the banks security. You wouldn’t want to borrow more than you could afford to pay back, would you?

Mortgage Rates, Recent Trends

Mortgage rates and economic trends

Mortgage rates can be a constant worry for those who own their own homes and property. While fixed rates can be predictable for a long period of time, owing to their nature, new fixed mortgage rates, in addition to floating mortgage rates, can vary wildly, and can cost the consumer a lot more than they bargained for. Fortunately, recent reports from economists state that mortgage rates to stay steady after OCR (Official Cash Rate) has remained similarly steady. What does this mean for the average person? Well if you are looking for a new fixed rate mortgage, you can rest easy knowing that you shouldn’t be in any particular hurry, take your time and try to find the best deal for you. Those who are getting by on floating rates have comparable good news, with those participants under little threat in the recent future of seeing an expensive upturn in the rates. Given the economic and housing problems that are occurring all over the world, let’s hope this signifies a new trend.

Pay Day Loans: A Dangerous Trap

Pay day loans

Who hasn’t heard of pay day loans these days?

To many people, they sound like a true blessing: loan companies will give small loans, often under NZ$1000, to people who are short on money ahead of their payday. At the end of the month, when the debtors’ paychecks arrive, they pay back the money and are good to go. At least, that’s the theory. In practice, many people don’t have enough money to pay back their pay day loans even when they’ve been paid by their employer. And once that happens, a terrible spiral begins.

See, there’s a reason these kinds of loans are profitable for the lenders: the interest rates on overdue charges are often upwards of 20% and can easily reach higher double digits. Once an unfortunate individual fails to pay back a loan, even in part, they are bogged down by interest rates that make it even more difficult to pay back the loan, forcing them to take on another loan – again with high interest rates – that they won’t be able to pay at the end of the month.

Steps to buying used car insurance

The law of the land dictates that; it’s of paramount importance to have an auto insurance policy before taking any car to the road. The purpose of the car insurance is to reimburse you to the previous status in the event that your vehicle is stolen or involved in accident. Also, the cover can take in medical expenses for you and other involved parties but that is subject to the policy preferred.

tips to buy used car insurance

While the process of acquiring used car insurance remains similar to getting insurance for a new car, some of the determining factors to the policy preferred may differ depending with how old your car is. It’s therefore up to the policy providers to assess and advice on the best way forward.

  1. – The first step to buying insurance policy for a used car involves getting in touch with the policy provider and stating your request. You will then be required to provide accurate information about yourself. That information will include but not be limited to: your name, social security number, date of birth and employment details.
  2. – Next, you will be required to disclose vital information about the car that you need to insure. Among the details that you will make known are; the model, make, year of manufacture and the vehicle identification number. More often than not, insurance providers will demand to have the car presented for their eventual evaluation.
  3. – Since it’s possible to have acquired the car through a loan or some sort of financial arrangements that are yet to be sorted out, you will be required to present details regarding the lien holder for the car. However, if you don’t owe money on your car, the process will be much easier and cheaper. Cars that are bought on loan may require the owner to consider buying collision insurance which is often regarded as expensive.
  4. – After that, it’s time to evaluate some of the expected benefits. To start with, consider the benefits associated with a policy that includes body injury liability. What this clause does is to prevent you from lawsuits following an accident which results in injuries or death of the victim. The victim will be paid as per the insurance’s guiding principles.
  5. – For fear that you might also damage other people’s property, it’s important to get a policy that consists of property damage clause. With that policy, you are assured of adequate cover when there’s need to pay for any property damage.
  6. Car insurance policy is more often than not renewed on a yearly basis. Nonetheless, many people may consider the premiums requested to be a costly affair. If you are of the same opinion, there’s a way out through raising the deductible amount. A deductible amount is the sum of money that you are supposed to pay to the insurer when you file for car insurance claims. The higher the deductible amount, the lesser the premiums you are expected to pay.
  7. Once you are pleased with the agreement that you enter with the policy provider, take time to evaluate all terms and conditions pertaining to the insurance plan. If you find everything to be within your expectations, go ahead and sign the deal. Remember, it’s meant for your own good.