Rising Interest Rates: Time To Prepay Your Home Loan or Not?

“Home Loan interest rates increased” screams a newspaper headline making consumers wonder whether it will be a good idea to break their investments to prepay loans ahead of time.

Here are a few tips to help you with this rather difficult decision

Tip#1 Before you prepay keep some money invested in modes that can be liquidated easily for unforeseen contingencies. Remember that once you prepay a loan that money cannot be borrowed back easily later on.

Tip#2 If you have any unsecured debt (credit card or personal loan) pay it off at once. No risk- free investment can ever give you a post tax return that will be higher than the post tax cost of such a loan. The difference is normally so high that even stiff prepayment penalties, in the region of 3 to 5 per cent will not change the decision.

Tip#3 Secured loans (and especially home loans) are a little more complex because they are low cost and may also have certain tax benefits driving their post tax cost down . The decision should normally be taken in consultation with your financial consultant. As a rule of the thumb (not applicable in all cases) however it will normally make sense even to prepay the home loans as long as the prepayment charges do not exceed 2%. There are 2 big exceptions to this thumb rule.

a) Where the interest rates on the home loan are lower than the current ruling rate (for example where you had entered into a fixed rate contract earlier)

2. If principal repayment of the home loan increases the amount of deduction under section 80C (this will happen if you are not fully utilising the Rs. 1,00,000 limit of deduction under this section through other modes of investment such as Life insurance premiums, contribution to provident funds, etc.)

Tip#4 Be aware of the prepayment penalties applicable in your case

Often customers are asked to sign loan documents with no mention of prepayment penalty. Thus they are not even aware of what the actual prepayment charges are. Most consumers also do not retain a copy of their loan document. Hence they have no record of their loan agreement at all. Remember to keep a photocopy of all the documents you sign. Banks are obliged to send you a copy of the loan document. If they don’t, you can lodge an official request on the concerned bank’s website. If they still do not provide the documents you can also complain to the banking ombudsman. (www.rbi.org.in)

Tip#5 Prepayment penalties are not written in stone.


Prepayment penalties can be negotiable if you have a good credit history. For a select few consumers, banks may sometimes also waive this penalty. They may be more inclined to ignore or reduce the penalty in situations where interest rates have been climbing after the disbursement of the loan and the loan carries lower than the market rates of interest. Competition among banks can also force them to be kinder on their customers.

Tip#6 : Save on prepayment charges by making partial pre-payments

Quite a few banks do not charge pre-payment penalty if the loan is prepaid partially. The definition of what constitutes partial pre-payment vary from bank to bank. You can make enough pre-payment to ensure that you still need to pay a few more EMIs (normally 12) to completely clear off the loan. This will ensure savings in pre-payment penalty and at the same time help you to save on high interest costs on a substantial portion of the loan.

Prepayment Myth

Some people think that it may be beneficial to prepay the home loan only early in its tenure and not after it has passed the mid way mark. This is a complete myth.

You may think that the EMI (Equated Monthly Installments) will, for the remaining part of the repayment period, mainly go towards clearing the principal amount as much of the interest portion has already been paid off. Even though this is true, the effective cost of the loan remains the same. Hence your decision should not change based on how much tenure of the loan has already elapsed.

Why do banks charge a prepayment penalty?

It is a practice adopted by banks across the world to primarily cover two kinds of costs.

1) They raise deposits at a cost; the funds come at a price. They may not have the right to prepay these deposits/loans back to their lenders and hence may continue to incur a cost. The prepayment penalty helps the banks in mitigating these costs.

2) Apart from the cost of capital, there are several direct expenses banks have to bear. These include legal, technical services and origination fees. Banks work out agreements assuming such costs can be recovered over the full tenure of the loan. Any prepayment leads to a loss for the bank since it disturbs this calculation process. Levying a prepayment penalty covers up.

Just a final word of caution before you prepay: Make sure that you have enough reserves set aside to see you through a rainy day or a sudden crisis that can crop up from nowhere. Or else, you will be forced to repeat the cycle: another loan, another interest rate structure, and yet another saga of prepayment penalties.

The Payday Company - Things To Look For To Avoid a Shady Payday Loan Lender

Payday loans aren’t just establish at your local pawnshop; large financial companies are also in the business. Banks, credit unions, and funding companies offer services in this subprime lending market. There are also companies that behavior scams. Often these are operated overseas.

Who’s Offering Payday Loans

Online you will happen thousands of payday loan companies. Many of them simply procedure or mention applications to larger funding companies. With over $45 billion in payday loans being processed annually, large financial companies, such as as H. G. Wells Fargo, Citifinancial, and MBNA, have got go involved. You will also happen regional and small subprime lenders who concentrate solely on payday loans.

Varying Processes

With Federal Deposit Insurance Corporation institutions, the application procedure can be more than stringent. Payday loans are known to be high-risk. Larger funding companies seek to test out some applications by requiring higher income degrees and researching checking account history.

However, there are niche payday lenders who only necessitate identification, a beginning of income, and an unfastened checking account. Online payday loan companies also have got faxless application, requiring less paperwork.

Besides application differences, payday loan companies also manage payments differently. Traditional companies will necessitate you to compose a postdated check, which they will cash on your payday. Online lenders debit entry your payment automatically. They also wire money directly to your account so you don’t have got to fuss with waiting for a check to unclutter at your bank.

Identifying Scammers

Some companies identifying themselves as payday loan companies are actually fishing for your information. These companies are usually located overseas and are hard to prosecute.

Good sense can protect you from these companies. Don’t manus out your financial information to 3rd political party land sites who assure to mention you. Also look for information on finance fees and payment options. If an offer looks too good to be true, check it out. Contact the lender to talk with a representative. If they are unprepared to reply your financial questions, opportunities are they aren’t legitimate.

Finding The Best Lender

Be certain you compare lenders. By researching online, you can quickly happen the best rates and terms. Also, petition financial information before you perpetrate to a lender.

See our suggested payday loan companies online by visiting this page:
Recommended Payday Loan
Lenders Online.

No Faxing Payday Loans - Quick Easy Loans Online

No faxing payday loans do the application procedure a snap. No searching for paperwork here. Instead you can get a answer in proceedings of your approval and expression forward to your cash advance in the morning. Respective payday loan lenders offer this service, so be certain to check out their rates to happen the best deal.

No Faxing Application Process

In the past, payday loan companies required cogent evidence of your identity, employment, and checking account. That meant dragging down a stack of paperwork to be copied at the cash advance office. Those years are over.

Now you can submit your personal and financial information over a secure server, encrypted to forestall identity theft. You don’t have got to facsimile transcripts of any of your information since your information will be verified by databases. And you can anticipate to have an reply in minutes, not hours. The automated procedure velocities the full process.

There are online lenders who make necessitate faxed information. They can also offer competitory rates. So if you are looking for the best deal, include them in your search.

Waiting For Your Cash Advance

With online cash advance companies, your finances are directly deposited into your checking account. This greatly increases the velocity in which you can access your cash compared to the old way. Checks have got got to be verified for finances to travel through, but with wire transfers you don’t have this delay.

An further benefit is that your payments are also automatically deducted from your account. Depending on how your payment agenda was put up, the loan amount will be withdrawn on your following payday.

Payday loan lenders will also allow you to change payment terms if you happen that you are short before payment is due. For an further fee, you can detain the principal payment. This volition usually necessitate you to make at least the funding charge payment.

Varying Rates Between Lenders

Payday loan companies do not all charge the same fee. By careful searching, you can happen rates significantly less. You happen these fees by comparing the APR, not other fees or rates.

Most of the time, you will happen these rates posted on the FAQ section. You don’t have got to apply to bespeak a quote either. As required by federal law, funding companies have got to let on their APR.

Poor Credit Secured Loans - Bring Normality Back To Your Life

If you are having poor credit to your credit history and looking for some feasible loan type then you should opt for poor credit secured loans. Poor credit secured loans are meant to serve the needs of borrowers who are marked with poor credit.

No doubt, good credit history makes you look impressive to a potential lender but with the poor credit secured loans borrower can feel comfortable too. As poor credit secured loans are designed keeping in mind borrower's poor credit history.

Borrowers with past record of CCJ's (County Court Judgments), Individual Voluntarily Agreement, arrear holder, defaulters, bankrupts etc are the one who are listed as borrowers with poor credit.

Borrower's poor credit situation can be due to various reasons that may have occurred intentionally or unintentionally like non-payments of previous debts, long time illness, loss of job, regularly shifting job or address, defaults in the payments, lavishly spending money, etc.

Under poor credit secured loans, borrower can borrow the loan amount ranging from £5,000 to £75,000 or up to 125% of your property value in some cases. Poor credit secured loans are low cost loan that are secured against borrowers collateral i.e. home, car, valuable documents, jewelry etc. Therefore, with the collateral as security, poor credit secured loans help the borrower to live in with easy repayment option, longer amount, feasible interest rate etc.

Poor credit secured loans offer its borrower easy repayment option of 5-25 years thus borrower finds easy to deal with the loan repayments terms, without much affecting his monthly expenses. Moreover borrower with poor credit enjoys lower interest rate compared to unsecured.

Like secured loans, poor credit secured loan can be used to meet borrower's various needs like renovating a home, buying a car, meeting education expenses etc but most of time poor credit secured loans are opted to wipe off the adverse credit.

Poor credit secured loan can bring normality back to borrowers life only if you comply with the repayment terms.

The Easy Payday Loan - Why Payday Loans Are Easier To Get Than Credit Cards or Personal Loans

Payday loans are easier to get than credit cards or personal loans since there is no credit check involved. And because payday loans are meant for a short period, usually 30 years or less, payday companies don’t necessitate an extended background check.

No Credit Checks

Credit checks take clip – respective years in fact. And when you borrow large amounts, like with a car or home loan, it do sense for a lender to do certain you aren’t too high a credit risk.

Cash advance companies deal with much smaller loan amounts, between $50 and $1500, so they can afford to impart to anyone with a regular beginning of income. Not only make you not have got to worry about your credit score with a payday loan, but you also reduce clip spent processing your loan application.

Quicker Turnaround Time

Getting a cash advance is also quicker than applying for other word forms of credit. By submitting your contact and checking account information, you can be approved within minutes. After a quick confirmation of your information, your lender can wire your cash into your checking account within a few hours. A credit card or personal loan can take hebdomads to procedure as lenders check your financial background.

Flexible Hours

By using an online payday loan company, you can apply anytime. Most applications are processed over the internet, so you can get a response even in the center of the night. And with most lenders, you can reach a representative outside of typical business hours.

Easy Comparisons

Besides the easiness of the process, you also can compare lenders much easier than with credit card companies or banks. Most cash advance companies will post their fees or APR on their website in the FAQ section. By checking out respective lenders, you can be certain you are getting the lowest fees.

No Credit Affect

Payday loans remain off your credit record as long as you pay them on time. With credit cards or personal loans, using credit or having respective unfastened accounts will lower your credit score. Payday loans don’t have got that affect, and they do sense for short-term financial emergencies.

To see our suggested beginnings for payday loans online, visit this page:
Recommended Payday Loan
Companies Online

Payday Loan Online - How To Get The Loan Fast

Are you in need of some fast cash? Bash you have got an emergency that necessitates you to get a short term loan? Here are some great grounds to see getting your payday or cash advance loan on the web.

Its Easy - Getting a payday loan on the internet salvages you from drive to a payday loan store, talking to person and filling out document in a waiting room. You can be in your pyjamas and take care of your cash needs in the comfortableness of your ain home. How is that for a benefit!

Get Better Rates - With the internet, you can quickly compare rates between cash advance lenders. To get the same result, you would have got to literally draw out your phone book and phone call up respective local cash loan supplies to happen out how much each lender is charging in fees. With the internet, in about 10 proceedings you can happen a payday loan company with the lowest fees you can get. Getting cheap rates on a payday loan are important.

Save Time on The Application Process - In a payday loan store, you will have got to pass at least 15-20 proceedings on the initial application. With payday loan companies online, their applications usually take about 2-5 proceedings to finish and usually have got a 30 second to 1 hr approval time.

Apply With More Than One Company - Online, you can apply to 2-3 different loan companies and then compare your offers. Most likely, you are not going to make that in "the existent world". Its just too much work.

To see our listing of suggested payday loan companies online, visit this
page: Our
Recommended Wage Day Loan Companies Online.

Are You Self-Employed? Now Special Loan for You

Gone are the days when lenders used to offer loans only to people who had fixed monthly income through a full-time job. But now owing to heightened competition, there is a race among lenders to tap new clients-and-here comes the self-employed category of borrowers. Now, loan companies do provide customized loans to self-employed people. However, the only condition is that you show proof of your income through self-employments.

In the past if you were self-employed and wanted loans, it was either very expensive to take out loans, or filled with difficulties or both. This is no longer the case in today's marketplace. Today loans for those who are self-employed are being offered by a variety of lenders as they compete for the business of the self-employed loans. Even if you, as a self-employed person, have no certified accounts or proof of income, you may still qualify for loans that are geared to the self-employed. Many people work from home today doing a variety of self-employed jobs. Now people who are self-employed can also qualify for self-employed loans. There are so many lenders in the loan market who are offering self-employed loans with competitive interest rates and competitive fees.

Self-employed loans have traditionally been hard to find and very expensive. Because more and more people are now working for themselves the situation has become a little easier because availability of large variety of financial services providers, self-employed loan seekers will be able to find and negotiate very competitive loans. Whatever your self-employed status - whether you're a freelancer, a sole trader or you run a small business - talk to any lending company advisers about a self-employed loan and see what they can offer.

Your self-employed loan can be for any purpose, whether it's to invest in your business or for personal expenditure such as a new car, a holiday, home improvements or school/university fees for your children. Loan applications are processed quickly and once approved the money is made available as soon as possible for you to spend as you wish. There are lenders who can provide self-employed loans to self-employed borrowers with or without audited income accounts.
The self-employed loans are available with or without security. Both secured and unsecured loans for self-employed are as competitive. Self-employed homeowners can enjoy borrowing against equity by keeping their home as security for loans. Tenant and non-homeowner self-employed can find unsecured self-employed loans to suit their purpose.

Self-employed who want to know how much they can borrow must apply for free quote. Checking affordability will ensure the success while repayment of self-employed loans. A free quote will enable them to know whether they can afford the loan amount or not. Self-employed can enjoy the provision of self-certifying their income so that they can borrow as much as they want.

Self-employed Loans: Online Application

Applying for loan on net for the self-employed person has never been so easy. The tedious and painful paperwork is a thing of the past for the self-employed person who is applying for loans. By applying online today for loans for the self employed, the self-employed person can save time and be approved much more quickly for their loans. On net only the entire query may be resolved of the self-employed person may be seeking in regards to applying for loans. If you are self-employed then complete the online application for your self-employed loans to enjoy the financial benefits that you deserve.

Self-employed loans: Benefits

• Self-employed loans for self-employed with or without income accounts


• Provision for self-employed to self certify their income


• Self-employed loans at rates and benefits similar to any other loan type


• Self-employed loans for any purpose


• Self-employed loans with our without security

Secured Loans - The Business Of Happy Homeowners

The happiest thing about being a homeowner is certainly to have a permanent roof over the head. It gives you a sense of safety and security. You can live in it happily with your near and dear ones. There is no tension of leaving it after the agreement term is over as is the case with rented house. It is your own home and you can decorate or revamp it in the ay you want. These are certainly great benefits of being a homeowner.

However, there are more than these benefits to be enjoyed if you are a homeowner. You can save your money go down the drain by avoiding house rents. But the most important thing is that you can bank upon your home when you are in need of some money and there is no source to avail it. In such situations, you can take secured loans against your home. This is a cost-effective way of raising required fund.

Generally secured loans are taken when there is a need of raising big funds. Since there is the backing of the home, lenders of this loan sanctions big amounts through this loan. A borrower is allowed to take out any amount that the equity available in his home permits. Sometimes lenders offer more than the equity value. In rare occasions one can take out secured loans against a home which has no equity in it.

Along with bigger loan amount, one can also enjoy longer repayment term and small repayment instalments by using his home for taking out a loan. However, one risk he will have to bear and that is the probable repossession of his home. If he fails to pay off the loan then he will have to hand over the possession of the home to the lender. But the fact that secured loans come with flexible repayment terms make this risk negligible.

Online Payday Loans - Bad Credit? No Problem

Bad credit isn’t a problem with online payday loans. You can get cash for your financial emergency in a matter of hours. With funds transferred directly to your checking account, you can pay your bills the next day.

Easy Application Requirements

Payday loans are one of the easiest loans to qualify for. With no credit check, cash advance companies don’t need to know your credit score or payment history. This speeds the application process too.

You do need to meet some minimum requirements though. Payday loan companies require you to be at least 18 years old and have a steady source of income. Your income can come from a job, pension or social security check. You will also need to have an open checking account to receive funds.

With a faxless application, you don’t have to provide copies for information verification. Your lender will simply check your information against their databases.

Be A Smart Shopper

As with any type of credit, you can find better deals by shopping around. Payday loan companies are required by federal law to post their APR. You can use this number to quickly compare financing fees.

You don’t have to do an exhaustive search of every payday loan company. Make a quick check of a payday loan company’s site. If you can’t find their fees quickly, then move on to another lender.

A simple investment of a couple of minutes can save you over 25% on fees. This can really add up, especially if you don’t pay off the loan on your next payday.

Payday Loans Can Help Rebuild Your Credit

Payday loans can help rebuild your credit by helping you maintain an on time bill payment history. By keeping current on your other bills, you can create a good credit score. Two years after a discharged bankruptcy or foreclosure you can have an A- rating. If you simply have late payments, your score can improve sooner.

Using payday loans wisely can make them a useful tool. Plan on paying off the entire balance on your next payday. You can set up automatic payments will lenders to do this.

$1000 Advance Payday Loan - Should You Borrow That Much On a Payday Loan?

Payday lenders a few old age ago lone offered cash advance loans up to $500 - Then, some started offering payday loans up to $1000, now companies are starting to offer loans up to $1500. Before you begin an application procedure to get yourself a $1500 payday loan, see some points about how payday loans work. You will probably stop up wanting to borrow as small as possible.

Payday Loans are Expensive - Payday loans are ill-famed for charging much, much more than in fees than credit card companies do. The trade off is, that the application procedure is much simpler and you get your cash fast. But, the terms for quick cash is high. Most payday loan companies charge anywhere from $8-$30 per hebdomad per $100 borrowed. It can be anywhere from 300-900% APR. Most credit cards are anywhere from 8-30% APR.

Interest Adds Up Daily - Payday loan interest is adding daily, so you shouldn't borrow the cash for a twenty-four hours longer than you need to. See this, if you borrow $500 for lone 2 weeks, at the rate of $10/per week, per $100 borrowed, that's $100 in interest you are going to pay after just two weeks. Think about what else you can purchase for $100.

Use The Minimum Amount You Need - To salvage on those fees, only borrow the bare minimum you can get away with borrowing. However, even with the high fees, there are going to be modern times when you absolutely can warrant the interest in order to have got your cash deposited quick. If you are avoiding late fees with bills, bounced check fees, public utility shut-offs and other emergencies, a $50-$100 interest payment may be the least of your worries.

To see our listing of suggested payday loan companies online, visit this
page: Our
Recommended Payday and Cash Advance Lenders Online.

How To Get Your Payday Loan Cheap

Its no secret that Payday Loans are expensive. Payday loan fees and interest are about 5-10 modern times more than that of a credit card. The benefit to using a payday or cash advance loan is that you can get the cash fast and the loan approval procedure is relatively quick. There is no credit check, so that's 1 less obstruction to overcome. But it is of import to get the cheapest, lowest fees you can when you make get a payday loan.

Here are some tips to assist you get a cheap payday loan:

Compare 3-6 Payday Loan Companies Before You Decide - Payday loan companies fees can change greatly. Brand certain you compare multiple lenders before you decide. Even if the company states that they have got the lowest fees. Don't take their word for it.

Read The Fine Print - When comparing fees from payday lender to lender do certain to read the mulct print. When they state their fees are $10 per $100 borrowed, happen out how long that is for. Are that for a 14 twenty-four hours loan or is that per week? Brand certain you cognize how much each company is charging per 14 twenty-four hours period, per $100.

Only Borrow What's Necessary - This is not the clip to get a small extra cash "just in case". Payday loans will always be available. If you make end up needing more than than money you can borrow more from another company. Only borrow the bare minimum that you believe you will need. It would be tremendously uneconomical to stop up borrowing more than you needed, to pay the interest on money that sat in your account and then you just turned around and gave it back to the lender.

Borrow For The Short Amount of Time Possible - Ask about an early payoff. Bashes the lender allow you to pay the loan off earlier than expected if you are able to? Brand certain you can, you don't desire to be paying extra interest on money you no longer need.

To see our listing of suggested payday loan companies online, visit this
page: Our
Recommended Payday Loan Companies Online.

Feng Shui Real Estate

I have had the pleasure of speaking to Real Estate Agents about the benefits of applying Feng Shui into house sales and attracting listings for years now. They have a profound interest, now more then ever, on the ancient principles we have been using for years to get that house off the market and SOLD for a good asking price. They have also been surprised to hear a few of the things I have come across in dealing with potential buyers that they were unaware of previously.

For example, many Real Estate Agents were not aware that as a Feng Shui Consultant, we are often called in for "emergency" Feng Shui Consultations. They don't mention it to their agents out of fear or embarrassment but they have found a home they love and want to make a bid on but are afraid the home won't "support" them from a Feng Shui perspective.

Consultants are also used because the client has a basic understanding and awareness of Feng Shui and want to know about certain areas of the home and how it is likely to affect their lives if they purchase the home. They sometimes call because no one has told them the history of a house and in Feng Shui, we believe in what is called "Predecessor Energy" or the Energy of occupants who previously occupied the space. They believe, as we do, that energy can leave an "imprint." If the home was left under good circumstances, such as the previous owner moving up in the world, they feel they will as well; if, on the other hand, a divorce or foreclosure has occurred, they have concerns that they are not buying a home with a good background.

Since potential home buyers are looking at a home from a different perspective, Real Estate Agents with knowledge of Feng Shui principles and an openness and awareness of the subject can help set them at ease. It is not mentioned, however, during discussions because of reluctance on the homeowner's part. While Feng Shui is still considered by some to be a "trend," I can assure you it's here to stay and best to get an understanding of it and then openly discuss your knowledge with your clients.

It is often sad to hear that someone has found a home they love but have called in a Consultant only to hear that for one reason or another, the home will not be an auspicious place for them to live. It must be addressed here that there is still fear and negativity with some forms of Feng Shui and Agents can seek to dispel that or call in a Consultant who believes that a home truly can, with simple and inexpensive adjustments, support and provide wonderful things for their new occupants. The potential client is often grateful for the knowledge and assistance of the Agent who has gone the extra steps to assess a home while looking at it from a different viewpoint.

If it sounds too difficult to learn some Feng Shui principles to support your sales and attract new clients, the subject of Feng Shui does not need to be daunting or time consuming. It opens up a new dialect and discussion with your client and your willingness and openness to their well-being is considered a true asset to them, one that will be appreciated long after your role in selling the home is over.

Contact a consultant or pick up a book for a basic knowledge of Feng Shui and learn what you're missing.