Mortgage

What are your Options when Looking for a Personal Loan?

From time to time, we all need help financially. Taking out a personal loan can be a good solution, providing you find the right type of loan for your individual circumstances and needs.

With a huge choice of personal loans out there, it can be difficult to navigate the marketplace as a consumer. Should you consider instant payday loans or would a long-term secured loan meet your needs better? If the first is the most suitable option for you, you can apply to get a loan from such lenders as MoneyBoat, which offers several other loan options as well. There are various matters to consider when filling in an application for a payday loan, short-term loan, or any other personal loan and it pays to be prepared. Here’s a simple guide to help you find the perfect loan for you.

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Types of loan

Initially, it’s helpful to separate personal loans into two categories: unsecured and secured. Here’s we have in collaboration with the experts at supermoney.com the best picks for personal loan!

Unsecured personal loans

Unsecured loans are offered to consumers without the need for an asset, such as property, to be offered up as security. Unsecured loans come with greater risks for lenders and, therefore, are usually for lower amounts, over a shorter term, than secured loans. They also come with higher interest rates.

Secured loans

Secured loans are those that you take out against an asset, usually in the form of a property. A typical secured loan is a mortgage, for example. These loans are usually offered over a longer period of time – up to several decades, and loan values can also be much higher. Interest rates are lower but consumers stand to lose their home if they are not able to keep up with their repayment responsibilities.

Types of unsecured loan

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Payday loans and short-term loans

If you need access to cash quickly, in order to meet unexpected costs, for example, you can consider payday loans. These online loans are easy to apply for and, providing you meet the lending criteria and pass any credit checks, you could have the money in your bank account as quickly as in an hour. Payday lenders will usually give you access to up to around £500 over a period of weeks or months, depending on their individual lending criteria and your eligibility.

When deciding which payday lender to apply with, it’s better to pay attention to the payment terms available on lenders’ websites. Some payday lenders will ask for full repayment on your next payday, but others will allow you to spread your repayments over a number of installments. Either way, borrowers will often be able to access cash within hours of applying online for a payday loan.

Once you have identified whether a payday loan is a proper fit applying for it online is very simple, with just a few straightforward pieces of information usually required. If you have done decent research beforehand and find yourself to be eligible, there’s no reason you can’t have the money you need at this very moment.

Watch out for: Interest rates can be very high and you should only consider lenders who are authorized by the Financial Conduct Authority and who lend responsibly.

Long-term bank loans

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Banks and building societies still offer personal loans at decent rates. You may be able to borrow several thousand pounds over a number of months or years with regular repayments that suit you. However, you will usually need to meet strict lending criteria and have a good credit rating to be considered.

Watch out for: You may trust your high street bank but they may not offer the best rates and terms on personal loans so always shop around.

Long-term online loans

Over the past few years, a large number of online lenders have emerged, offering consumers more choice in the personal loan marketplace. These alternative lenders can sometimes offer better interest rates and more flexible terms than banks and building societies. Loan amounts and terms will be similar to loans offered by banks and you will need to meet certain lending criteria and pass a credit score check.

Watch out for: Check online lenders’ terms and conditions carefully as you won’t have the opportunity to ask questions in person.

Other forms of unsecured loan:

  • Car finance
  • Credit union loan
  • Guarantor loans

What can I use unsecured loans for?

You can use unsecured loans for any purpose you wish. Payday loans and short-term loans are often taken out by those who need emergency cash. Borrowers may need to pay a mechanic to fix their car or could have school fees to pay, for example. Long-term personal loans, on the other hand, are often taken out to consolidate other debt, such as credit cards and store cards. They can also be used to pay for larger expenses like renovations and weddings.

Types of secured loans

Source:debt.org

Mortgage

The most common type of secured personal loan is a mortgage, taken out to buy a domestic property. Mortgage lenders offer up to £1 million or more to help homebuyers meet the cost of their property. The loan itself is secured against the value of that property and if the borrower is unable to repay the mortgage, the lender can force a sale of the property to meet the outstanding debt. Interest rates can be very low for mortgages and they can be repaid over several decades. You will need to meet strict lending criteria to take out a mortgage, providing clear evidence of your ability to repay the loan.

Watch out for: Arrangement fees and early repayment fees can apply. Ensure that you have the means to repay the loan over its entire life, or risk losing your home.

Other forms of secured loan:

  • Bridging loan
  • Homeowner loan/second charge mortgage

What can I use secured loans for?

Secured loans are usually used to help pay for a property, but can also be taken out to help pay for other large items. You can sometimes take out further mortgages on your home to help cover the cost of renovations and extensions.

Tips for Getting a Home Loan in 2020

Getting a home loan in 2020 might be a challenge given the many mortgage options and the low affordability of homes. While finding the right home can be exciting; getting the loan to finance your dream home is equally important. If you’re considering taking the plunge and finally buying a home, make sure you’re doing it smartly and not getting yourself into a loan you’ll regret. Here are ten tips to help you acquire a home loan amid the 2020 real estate trends.

1. Save Early for Your Down Payment

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If you want to buy a home, you need to start saving for the down payment as early as possible. Down payment can be as low as 2.25% or as high as 20% of your home’s buying price, depending on the financing option you choose. With this information, you can decide how much you can comfortably save and work on a plan that allows you to put away the amount every month.

The earlier you start saving, the more money you’ll have for the down payment and other home-buying costs such as moving expenses, closing costs, and home appraisal and inspection costs. If you are on a tight budget, consider financing options with low down payments like FHA.

2. Check Your Credit Score

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Lenders use your credit score to determine your suitability for a loan. A lower credit score means you are a high-risk investment. Before you set out to buy a home, check your credit report to see what your credit profile looks like to lenders. You can then put up measures to ensure that your credit score is high enough for you to acquire the best home loan deals.

The good thing is that you can get your annual credit report from credit reporting agencies like TransUnion and Equifax. You can also get your credit score at a small fee. If your credit report has errors, you should have them corrected immediately.

When it comes to credit scoring systems that use a range of 300-850, a credit score of 700 or above is usually considered good. In the same range, a score of 800 and above is considered to be excellent. Most commonly, a credit score falls somewhere between 600 and 750. If you have a higher credit score, it means that you’re seen as more responsible to lenders. As such, they will have more confidence in you to lend you more money.

A variety of organizations use credit scores. Lenders can include banks providing mortgage loans, car dealerships, and credit card companies. All of these organizations use your score to make a choice about whether or not to offer your credit like a card or a loan, as well as what your down payment and interest should be. You may have heard of the FICO® Score, but this isn’t the only type of score there is. There are many types of credit scores, including scores by VantageScore and industry-specific scores.

3. Have All Your Financial Documents in Order

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When applying for a mortgage, you will need to provide financial documents to convince your lender that you can pay back the loan. With this in mind, ensure that all the necessary financial documents are in order. These include tax return for the last two years or your recent W-2s, your previous two paycheck stubs as well as bank and brokerage statements. With your documents in order and readily available, your home loan processing will be much easier and faster.

4. Make Use of Mortgage Calculators

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A mortgage calculator helps you establish what you can afford when buying a home. Use a mortgage calculator to figure out your mortgage installments, given different prices and interest rates. This way, you can plan your finances better and avoid going outside your financial comfort zone.

5. Compare Different Offers

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It would help if you didn’t settle for the first quote or lender you find. Have a look at various financing options and compare them before choosing a suitable alternative. Look at factors such as the interest rates, flexibility of payment, fees involved, and even mortgage premiums when comparing different financing options. A better way is to look at the Annual Percentage Rate (APR) of different lenders as it represents the overall cost of your mortgage and gives a more accurate comparison figure. There are several different types of mortgages. You can learn more about them here.

6. Track Interest Rates

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Since the cost of your mortgage will be highly dependent on the interest rate, you need to know whether they are rising, falling, or stagnating. This helps you predict what you’re likely to pay for your home loan once you secure it.

7. Get Mortgage Pre-Approval

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A mortgage pre-approval not only shows you how much you can borrow but the price range of the homes you should consider, too. It also improves your chances of homeownership as most real estate agents and sellers prefer working with pre-qualified buyers. What’s more, pre-approval shows your seriousness when placing offers on homes. To be pre-approved, you only need details of your income, savings, and investments.

8. Research Your Mortgage Options

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Mortgage options differ from one lender to another. Some offer fixed-rate payment schedules while others are adjustable. By understanding the nature of your available loan options, you will be in a better position to choose a home loan that suits your financial situation.

9. Always Communicate Promptly with Your Lender

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After applying for a loan, be sure to respond to any requests by your lender promptly. Whether your financier is looking for clarification or asking for more information to process your loan, ensure that you provide immediate feedback. Delayed responses may lengthen your loan approval process, which results in problems that may cost you your dream home.

10. Don’t Ruin Your Credit

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Lenders usually take one last look at your credit status before closing to make sure your credit score hasn’t dropped, and your debt-to-income ratio is not higher than it was. To avoid ruining your credit, pay your bills on time and avoid taking new credit or applying for new loans before your home loan is closed.

Buying Your First House – 5 Tips To Know

Wow, it seems like it was only yesterday when you were packing your things from the room where you spent your childhood, and now…here you are thinking of planting your roots somewhere and planning to buy your first home. Congratulations! This is a big milestone, so allow us to help you out.

In this article, we are going to talk about the different things that you need to know before buying your first house. Let’s get started!

1. Looking for Your Ideal Home Starts With Your Personal Goals

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It’s always best to think long term when buying a house, especially when deciding on its location. What are your goals? Do you want it to be near a business district? Is it within a school district? How about a hospital? Is it in a place where you can imagine your family thriving in and you, growing old in? And most of all, is it safe?

Once you’ve narrowed down the neighborhoods, it’s time to start hunting for the actual property. There are three ways to do this: you can either search for it online on your own, hire a real estate agent, or both! We prefer doing both since it increases your chances of finding the most ideal place for you.

Don’t forget your personal wishlist as well. We all have those non-compromisable items such as a room that can serve as a home office that gets a lot of natural lighting, a swimming pool, a basement that can serve as a Dungeons & Dragons man cave…everyone has one. What’s yours?

2. You Need to Settle All Your Finances

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Buying a house is not a simple purchase and applying for a mortgage is quite a complicated process. According to Loanstart, if you’re pretty strapped on expenses, then you consider getting personal loans with fair credit. A fair credit score is anything between 620 and 680. If your credit score is in this range, it may be caused by your short credit history. Among possible reasons can also be your late payments of the bills in the past. Also, having a lot of debt can drive down your score.

You should also take your savings into consideration. What most budding homeowners fail to realize is the fact that owning a home can be much more expensive than renting due to the upkeep costs. Hence, in order to avoid debt, it’s always a good idea to set-up an emergency fund equivalent to at least six months of your salary. To protect yourself from yourself, don’t store your down payment money in your ordinary bank account. Try an account with separate savings or a money market account instead.

And finally, you should settle (and actually STICK to) a price range that you can realistically pay-off. Try to compute a rough estimation of how much your down payment will cost. In this way, you can already start saving up for it during your house search. While we’re already in the subject, let’s move on to the exciting part!

3. More “Affordable” Properties Sometimes Come With a Heavier Price

There are a lot of things that you should consider a property other than its selling price. Here are some red flags that you should avoid:

  • Apparent damage to the structure of the property. Do the exteriors and foundations have any cracks? Are they tilted to a certain angle? These small details, when overlooked, can sometimes lead to the demolition and rebuilding of the entire property.
  • Water damage, such as mold formations, is a serious health and safety risk. Black molds create air impurities that are terribly unhealthy to inhale and at the same time, they can also weaken a property’s foundations.
  • Beware of noise and smell “masks”. Noise and weird smells can significantly affect your quality of life, so if every room has a burning candle and some music playing, then chances are your seller or agent is probably masking something out.

In the end, you just have to be very vigilant. It’s you and your family’s life we’re talking about here and so much money potentially at stake. Anyway, once you’ve found the house, you know what’s next!

4. The Entire House Buying Process is a Long And Tedious Affair

Expect to have long nights ahead, from determining the right type of mortgage and loan up to the closing process. Just make sure to perform all the necessary research and don’t be afraid to ask your agent or your lawyer if there are any terms that you can’t quite grasp before you sign anything.

There are several reasons why it’s extremely important that when you’re buying a house that you hire an agent. Since a buyers agent is looking out for a buyers best interest, they’ll help ensure the buyer gets the best deal possible. An agent will also provide expert help to avoid potential problems such as border disputes, tax issues, etc.

A lawyer will help you in preparing purchase documents and will support you through different laws related to real estate. So, you can avoid legal problems concerning your purchase.

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5. Consider The Future of Everyone Who’s Going to Live Within Those Doors

Finally, when buying a house should not just consider your future in that house, but the future of all your household with whom you are going to live. Here are a few more questions that you can ask yourself before signing any binding document:

  • Is this place going to accommodate the path I want to take my career to?
  • How are the community and culture of this location?
  • Will there be enough space for future expansions according to the size of the family we’re planning?
  • Will I be able to increase the value of this property just in case our family needs to move again in the future?

No one can predict what will happen tomorrow, but by keeping these tips in mind, we are confident that you and your family are already a step closer to the home that you’ve always dreamed of.

Good luck!

Ready for a Home Loan? Make Sure You Understand These Fundamentals

Buying a home is often advantageous financial move, compared to renting. You’ll have more flexibility to maintain your own dwelling, and as you make payments on your mortgage, you’ll gradually establish equity—meaning a portion of your money will be contributed to your financial stake in the home. However, too many new homeowners get a loan and purchase a house before they’re fully familiar with the homebuying process. Home loans are straightforward on the surface, but there are many variables and components you need to consider if you’re going to manage your loan successfully. 

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What Is a Mortgage?

Let’s start with a high-level overview of what a mortgage is. A mortgage is a specific type of loan offered by a bank or lending institution to help you purchase a house. You’ll generally offer a “down payment” on your home, a percentage of the total sale price, as a way to limit the financial risk taken by the bank and as a way to establish equity in your home. This is variable, but the minimum in many areas is 5 percent, with many experts recommending as much as 20 percent. 

You’ll borrow the rest of the money to finance the home purchase, with your home serving as collateral. You’ll be required to pay this loan back in installments meant to pay down your principal (the amount you borrowed) and your accumulating interest payments. If you ever fail to make these payments, the bank may foreclose on your home, selling it to repay what you owe. If you decide to sell your house, you’ll use the proceeds to pay off the remaining principal; you’ll be able to keep whatever remains from the transaction. 

In many cases, your mortgage will also include an escrow account, meant to cover home-related expenses like your property taxes and home insurance. You’ll pay a small amount of these annual and semiannual expenses each month, along with your principal and interest payments, to make things simpler for both you and your bank. 

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Types of Home Loan Rates

One of the most important elements of your mortgage is the interest rate. The interest rate is the percentage of the principal you’ll owe as interest each year, and will vary depending on market conditions and your credit score. For example, if you borrow $100,000 to buy your home and you have a 4 percent interest rate, you’ll pay $4,000 in interest each year as you pay back the loan. 

However, according to Loans.com.au, there are different types of interest rates available to homebuyers. A fixed rate is an interest rate that’s guaranteed to remain the same for the duration of your loan; if it starts as 5 percent, it will remain 5 percent indefinitely. A variable interest rate is subject to changes; it may start at 5 percent and drop to 4 percent, or rise to 6 percent, depending on market conditions. It’s also possible to have a loan with a split interest rate, which will be fixed for a set period and variable for another set period. 

Generally, homebuyers are recommended to take the fixed rate when possible. A variable rate may be lower to start, but could increase over time. More importantly, it’s reliably consistent, so your payments won’t change much over time. 

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The Role of Credit

You also need to fully understand the role of credit as it pertains to your home loan availability. Your credit score is a number that reflects your financial reliability. The higher it is, the better your chances of securing a mortgage, and the more favorable that mortgage will be. If your credit score is “good” or “excellent,” you shouldn’t have an issue getting a mortgage, assuming you can afford it. If your credit score is “fair” or “poor,” you may have a more difficult time finding a lender. You may also be forced to take a higher interest rate, or pay for private mortgage insurance (PMI). 

Lenders will also look at factors like other assets you have; if you have a robust investment account, for example, it can make you look more reliable as a lender. They will also check your income and job history to make sure you have a reliable performance as an employee, and enough money to cover the cost of the mortgage. 

Other Factors

This guide covers the basics of how home mortgages work, and the most important elements to understand. However, mortgages are complex financial instruments, and you should do more research before moving forward with a home purchase. Your loan originator, the person responsible for helping you find and set up a loan with a bank, can help you with further questions. 

Finding A Mortgage Lender That Is Right For You

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Buying a home for the first time can be a scary experience, especially if you are taking out a large loan (even if you’re getting a great mortgage rate by using a site like Credible.com) to cover the majority of the purchase. There are all sorts of things to consider before making your home purchase. Here are some of the most important things to consider before committing to a mortgage lender. After reading, you may want to visit Focus Federal Credit Union to learn more about the mortgage lending options that are available to you.

  • Know What You Qualify For

Before going in and asking your lender for a loan, do your research, check your credit score, and make sure that you are in a position to qualify for the amount you want. You will save everyone time and energy by doing this.

  • Credit Scores Are Important

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Improving your credit score is a crucial part of the process, many don’t realize how much money can be saved over the lifetime of the loan when you are approved for lower interest rates. You check your credit score on websites like Credit Karma and use this information to gain a better understanding of the interest rate you may qualify for.

  • Know When You Want Move

Buying a home means moving from where you are to where you want to be. If there are specific dates that you need to move by, you need to make sure your paperwork and the qualification criteria are submitted and processed in time to meet your deadlines. If there is a home on the market that you have your eye on, make sure that your realtor works with the seller’s realtor so that your timeline is accounted for.

  • Plan On Spending More

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When you move into a new home, usually there are things that arise that we’re not planned for. Appliances go out, water pipes leak, and general wear and tear begin to surface as you spend more time in your new place. Set aside some extra money and be prepared to spend some cash on repairs and upgrades, once you get into your new home you will want to make it yours. Adding your personal finishing touch to the property will truly make it feel like home.

Mortgage lenders can be found in your local area by searching the internet or speaking with your local bank or credit union. There are definite advantages to working with credit unions over other traditional lending firms. If you are part of the U.S. military there are also special financing options that you may qualify for. Stop by your local credit union and apply for a mortgage loan today.

Can I Get A Mortgage With Bad Credit?

Sometimes, financial problems catch you out and before you know it, you have bad credit.  This might be missed payments, overdue amounts or even defaults. Sometimes the problem has escalated, and you are on a debt management plan or even had a CCJ.  So can you get a mortgage with bad credit?

What is bad credit?

Bad credit is a general term that relates to your credit record, an electronic document that contains all of your financial histories.  Lenders can view it if you are applying for a loan, credit card or a mortgage. If your credit record contains too many debt problems, you are termed as having bad credit.

However, this doesn’t mean that getting a mortgage is impossible.  According to Family Money, there are lots of different lenders out there and a good number of them will consider different bad credit situations to help you get a mortgage. Also, there are multiple ways in which you can get a mortgage. 

Img source: consumerfinance.gov

Bad credit mortgage basics

It is worth knowing that you will find the number of lenders available with bad credit to be lower than with good credit.  High street banks, for example, often don’t offer their products to people with bad credit. But there are also plenty of lenders who will consider different situations.

It is also worth noting that you might find you don’t get the lowest interest rate available.  Again, that’s because the lowest rates tend to go to the good credit record people. But over time, you can repair your credit record and remortgage to get a better rate.

You may need a higher than average deposit for some lenders.  The minimum deposit, in general, is 5% as lenders can no longer offer a 100% mortgage.  But if you have bad credit, the lender may want 10-15% deposit to help make the risk better for them.

Finding a bad credit mortgage

One of the easiest ways to find a bad credit mortgage is to work with a broker.  These are experts who deal with a whole range of mortgage lenders and know which ones will consider what situations.  This will save you a lot of time and heartache asking lenders if they will help, only to have them turn you down. A broker will know which lenders will consider your situation and can approach them first.

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It is also worth remembering that there are costs involved with getting a mortgage that you need to account for.  Some brokers may charge a fee while others are paid by the lender – they will tell you how this works when they first talk to you.  There may also be a fee to set up the mortgage but again, they will tell you about this at the start, so you understand.

Don’t forget if you are moving house, there are costs such as removals men as well as the cost of solicitors to draw up the paperwork and a surveyor may be needed to inspect the house.  So make sure you have a plan to cover these costs before you start looking at mortgages.

Improving your credit record

If you still find you can’t get a mortgage or can’t afford the payments due to higher interest, it might be worth taking some time to improve your credit record before trying again.  The key to doing this is to keep on top of your borrowing. Payments need to be made on time and you need to stay within any credit limits or overdrafts.

Avoid applying for too much credit and make sure you keep up to date with anything you already have.  Each payment made for existing credit that is on time and in full helps to build that credit score!

The types of loans you can get

There are various types of loans and loan contractors that have different terms, ranging from simple loans between friends and family to more complex ones like mortgage, auto, payday, and student loans.

Credit unions, banks, and other people lend money for important and necessary items such as houses, cars, and student loans. However, other loans, like small business loan are only available for a specific group of people.

No matter what the type of loan is (and its conditions for repayment), it is governed by the state and federal guidelines to protect the customers from illegal practices such as excessive interest rates. Additionally, the length of the loan and some terms should clearly be stated in the contract in order to avoid any confusion.

If you need an important thing, but you are in need of money, it is good to know what type of loans are available in order to decide which one would be best for you. Loan types will be different since each one has a specific use. The repayment time can be different, when the payment is due, and how the interest rate is calculated. Here is a list of the types of loans:

1. Student loans – these loans are offered to college students and parents alike, and are made available by reputable companies like Earnest.com. There are two main types, federal and private student loans. Loans that are federally funded are better since they usually come with a lower interest rate and have more borrower-friendly repayment terms.  

2. Mortgages – these loans are given by banks in order to allow the customer to buy homes that they cannot pay for up front. It is tied to a house, which means that there is a risk of foreclosure if you are late with your payments. These loans have the lowest interest rates among all other loans. For more information click here.

3. Car loans – similar to mortgage loans, auto loans are tied to the vehicle you buy. They can help you too but a car that you want, but you are at risk of losing the car is you do not pay your monthly fee. You can get this type of loan at a bank or a car dealership, but you should keep in mind that while the loans from the car dealership might be convenient, they usually have higher interest rates and an overall cost.

4. Personal loans – these can be used for any personal expense that does not have a specific purpose. This is an attractive option for people who have debts, or who want to reduce their interest rates by transferring balances. Like other loans, the terms will depend on your credit history.

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5. Small business loans – these loans are granted to entrepreneurs in order to help them start or expand their business. The best source for these loan types is the U.S. Small Business Administration (SBA), which provides people with a wide range of options that will depend on the business needs they have.

6. Payday or quick loans – payday loans are short-term, high-interest loans that are designed to provide a bridge between one paycheck and the other. Guarantor loans similar to Amigo Loans can help people who need money to survive until their next paycheck.

Conclusion

Whether or not you decide to borrow money, always make sure that you have read the terms and that you understand them perfectly. Always familiarize yourself with the repayment terms, such as the monthly amount of money you need to pay, how long is the repayment for the loan, as well as the consequences of missing a payment.

Are Subprime Mortgages Still a Part of Mutual Funds?

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The worst financial crash since 1929, which brought about the Lehman Brothers collapse and put millions of people out of work, seems far behind us. The US stock market is at record highs, unemployment is lower than ever, and investment is through the roof.

But what about the chief cause of the 2008 crash: subprime mortgages? These cheap mortgages aimed at people with bad credit have largely been accepted as a major cause of the US mortgage crisis and subsequent collapse. As such, you would think these types of dodgy loans would be a thing of the past.

Here’s the thing though. They’re back. Although they come with a different name and appearance, the subprime mortgage is back with a vengeance and they are more popular than ever.

Here’s the current state of play and what it might mean for the future of the US economy. 

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Subprime Mortgages Explained

If you’re wondering what subprime mortgages are, here’s a quick explainer. They’re essentially housing loans given to people who don’t have the credit to qualify for a mortgage.

Prior to 2008, they were given out to millions of people with no credit who were clearly unable to ever pay them back. The result was a huge debt bubble that eventually popped, causing the financial crash. 

Why They’re Back

In the wake of the crash, tough legislation was brought in to stop predatory lenders from issuing subprime mortgages. However, since then, regulations have loosened and shady lenders have bounced back.

There are a growing number of companies now offering housing loans worth millions to people with “less than perfect credit”, under the new guise of “nonprime mortgages”.

These are proving to be just as popular as the subprime mortgages of the past, meaning there could be potentially devastating repercussions for the economy. 

What Investors Should Know

If you’re an investor, especially one with their toes in mutual funds, this will obviously concern you. Mutual funds often deal in real estate and debt holdings, and a widespread crash could easily wipe you out.

Fortunately, mutual funds have tended to stay away from these kinds of loans for now, as investors are still wary of the mistakes of the last decade.

Make sure to keep up to date with all of the latest investment trends via money market investments, so you can avoid being burned in the future. 

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What It Means

Understandably, the news doesn’t look good. The last time this happened, millions of people defaulted on their mortgages and were unable to refinance their homes since their house was worth less than the high-interest mortgage.

There are safeguards in place meant to protect the economy and the American people from another Great Recession, but nothing is guaranteed.

One thing that’s certain is that if another major banking collapse does happen, the political will to bail them out like in ’08 will be non-existent. The results could be truly devastating. 

Stay Informed

Whether you’re a savvy investor or wanting to learn more about the rise of subprime mortgages, it pays to be informed. For all of the latest trends and developments in the US economy, make sure to follow our US Section today.