Secure vs Unsecured Loans

Essentially, there are two types of loans: secured loans and unsecured loans. Secured loans are loans in which you pledge some sort of collateral. The bank may repossess the collateral if you do not repay the loan according to the terms you agreed to when you took out the loan.

Unsecured loans are not backed by any collateral. You borrow money on the strength of your good credit and ability to repay alone.

Revolving vs. Installment Loans

Revolving and installment describe the amount of time you have to pay back a loan. With a revolving loan, you have access to a continuous source of credit, up to your credit limit. You repay only the amount of the credit you use, plus interest on the unpaid amount. You may re-borrow the principal you've repaid. So the loan could remain "open" for years.

With an installment loan, you pay an agreed amount, which includes principal and interest, every month. Each payment reduces the balance of the loan until it is paid off. There is a fixed ending date, known as the term of the loan.

Fixed vs. Adjustable Interest Rate Loans

Fixed interest is just that. You and the bank agree to a certain interest rate and it remains constant throughout the term of the loan. Fixed interest rates give you the stability of always knowing what your payment will be, so you can budget accordingly.

Adjustable or variable rate interest fluctuates. Usually it is pegged to the Prime Rate - the interest the U.S. Treasury charges to its best borrowers. When the Prime Rate is high, such as during a period of inflation, you pay more. When the Prime Rate is low, such as when the government is trying to stimulate the economy during a recession, you save on interest. If you need to borrow during a period of high interest, your payments will drop once the Prime Rate drops.

Types Of Loans

Auto Loans: A secured loan in which the collateral is the vehicle you purchase.

Credit Cards: An unsecured loan which allows you a line of credit against which you may borrow by presenting a plastic card to the merchant from whom you are purchasing the item. You may make more than one purchase, up to your credit limit.

Personal Loans: Secured or unsecured loans made for a fixed purpose.

Mortgages: A secured loan in which the collateral is the real estate you buy.

Home Equity Loan: A secured loan for a fixed amount in which the collateral is your home. In some cases, the interest on this loan may be tax deductible. See your accountant.

Home Equity Credit Line: A secured, revolving line of credit in which the collateral is your home. In some cases, the interest on this loan or a portion of it may be tax deductible. Consult a tax professional or your accountant.

Home Improvement Loan: A secured loan for a lump sum fixed amount in which the collateral is your home. The money may only be spent on home improvements. The interest on this loan may be tax deductible. Consult a tax professional or your accountant. (In some areas of the country, a home improvement loan "secured by the equity in your home" may not be available. In these areas, an unsecured home improvement loan would be available.)

Student Loan (Stafford Loan) A loan for college expenses underwritten by the U.S. Government. The loan is granted to the student. Payment is deferred while the student is still in school.

Personal Line of Credit: Unsecured loans allowing you access to funds up to a fixed credit limit.

LCD Versus Plasma

A new television is high on everyone's wish list. Who wouldn't love a brand new fifty-inch flat screen TV hanging on their living room wall? The makers of televisions are taking advantage of ever-changing technology by creating scientific marvels that can produce clear pictures and lifelike colors in just a few inches of depth. But all of this technology means that buying a TV is harder than ever. These days, the battle between LCD and plasma is on, and choosing sides can be hard. Which one should you purchase?

Why buy a plasma TV?

Plasma TV's have a wide viewing angle. This means that the person sitting to the side of the television can enjoy the same picture quality as the person sitting in front of the television.  With an LCD, the picture quality diminishes if viewed from an angle. If you plan on mounting your TV high on a wall or above a fireplace, a plasma is your best bet, since the picture will remain clear when viewed from the ground. Plasma TV's are known for having high contrast and deep black levels. This is most evident in nighttime scenes in movies and shows; the colors appear lifelike and every detail shows, even in dark scenes. Plasma TV's are also less expensive than LCD's. When the price per inch is compared, plasma TV's are a budget's best friend.

Why buy an LCD?

If you are looking to reduce your monthly electricity bills, you will want to purchase an LCD TV. The savings are minimal - often just a few dollars a month - but will add up over the lifetime of the television. And since an LCD TV uses less electricity, it is the greener option. You might also want to purchase an LCD if someone in your family is an avid video gamer. Video games often feature static images, like the score box or the countdown timer, that do not move. With a plasma TV, these static images can burn into the screen; this burn-in is not a problem with an LCD. You also need to consider the level of light in the room. LCD's are well suited to bright rooms. The screen is less reflective than a plasma, and as such will not show the reflections of windows or lights. Also, LCD's have a brighter picture; under the harsh glow of daylight or lamplight, viewers will still see a clear and bright picture on the screen.

Life Insurance Facts

Life insurance guarantees payment of a given amount to the insured person’s beneficiaries when the policy owner dies.  While many people, especially younger people, don’t necessarily want to take the time to think about something as abstract as dying, this form of insurance is particularly important for parents or other persons with dependents.

The basic structure of most life insurance policies is relatively straight-forward: the policy owner pays a premium every month; upon the owner’s death, the insurer issues payment for the policy amount to the spouse, children, or other beneficiary(-ies) named in the policy.  In practice, as with most forms of insurance, specific policies can be much more complicated than this fairly simple model.

For example, the life insurance policy might have riders, or additional clauses, that pay off in the event of a terminal or critical illness or a permanent disability due to physical or mental causes.  Also, there are different varieties of policies, including term life insurance, whole life coverage, universal coverage, and limited-pay policies.  Understanding the difference between the different types of coverage and picking the appropriate one for your situation can be difficult, and professional advice may be necessary to ensure the correct policy is in place.

Term Life Insurance covers the insured for a certain number of years, after which the coverage typically expires.  Because the policy does not build any cash value, and because it is typically based on a low likelihood of death for the covered person, term insurance premiums are usually relatively low.  However, the length of the term, the amount of coverage (and whether it stays constant or decreases over time), and the premium amount (again, fixed or adjustable over time), will all affect the premium amount.  The lower premium is a primary advantage of term life insurance; a drawback is that, at the end of the term, the still-living insured receives no benefit from the coverage.

Whole Life Insurance is permanent life insurance, which means the policy holder can withdraw money paid in or borrow against the cash value.  Whole life has the advantage of a fixed annual premium and guaranteed death benefits.  Premiums are much higher than term life policies at first, but over the life of the policy the two policy types roughly even out in terms of total cost.  While whole life insurance does build value over time, it may not be as strong as other savings options in terms of the rate of returns.  Also, dividends are not guaranteed with whole life. 

Universal life insurance is similar to whole life, but it offers more flexibility in premiums and may offer stronger returns over time.  It also has a cash account and accrues interest. 

The variety of policies available is intimidating enough to many people.  With dozens of optional riders available, and variations even within individual rider classes, competent professional help is definitely recommended when selecting life insurance.  It should be noted that the life insurance policies offered by many employers, while an attractive benefit, are typically not adequate to meet the needs of the insured’s family in the event of an untimely death.  The total amount of life insurance carried should be enough to pay off any mortgages, car payments, credit card debt, and any other major outstanding debt, leaving the survivors in a solid financial situation.

Low Rate Car Insurance

Everyone likes to save money! That fact is not a secret to anyone. When trying to save money on car insurance, a question that should be considered is, “What will be the cost to me for “saving” money?” This question is meant to help people realize that there is a difference between “price” and “cost”. While Company “A” may offer slightly lower or even much lower premiums than Company “B”, Company “B” may offer some services that you prefer, i.e. a local agent, 24 hour service, online service etc. These services may be worth the extra price to some people, and not for others. Thus, it is shown that services received may out-weigh the price paid.

Another factor to take into consideration is the quality of service you receive from an insurance company. While all auto insurance companies want you to believe that they are as good, or even better than the next company; that is simply not true. There are drastic differences in overall service, claim handling, and personality of individual companies. One company may offer exceptional claim’s service, but perhaps it is very difficult to actually get in touch with the company’s claim’s department; while another company may have terrible claim’s service, but their claim department is easy to reach.

One must ask themselves, “Is it worth paying lower premiums to receive a lower quality of service, or am I willing to pay a bit more to ensure that my service is exceptional?” Don’t misunderstand. Just because a company offers lower premiums, does not necessarily mean that company’s level of service will be lacking. Great service can come at any price.

The most important item to remember while searching for lower premiums is to do your homework. Talk to your family, friends, and co-workers. Ask them where they are insured, and if they are pleased with their insurance company. Remember, not all insurance companies are created equally, for instance, a company that runs completely over the phone or internet will have different costs than a company that employs fulltime agents. That is because the cost of doing business is different for each of those companies. This brings the question again, “What services do I value in my insurance company? Do I want the package Company “A” offers or that of Company “B”?”

Low rate car insurance is in the eye of the beholder. Simply put, different services are worth different amounts to different people. So find the company with the services you desire and let the games begin.

Mortgage Insurance explained

Getting a mortgage is bad enough – what with terms like fixed rate, discount, variable etc – so mention mortgage insurance and naturally your eyes will start to glaze over.

However, mortgage insurance is an extremely important insurance to have – in fact, it can the difference between keeping a roof over your head or ending up having your home repossessed.

If you recently took out a mortgage, you may remember the lender asking you whether you wanted mortgage payment protection insurance. It probably sounded expensive and unnecessary. And while, in some cases, there are companies who like to charge you too much for the product, it doesn’t have to be that way.

As for it being unnecessary – get the right policy and at the right price and it will be an invaluable safety net for you. So, what is mortgage insurance? It is a product whereby should you be unable to meet your mortgage repayments due to being made involuntarily redundant or due to being able to work because of sickness or maybe an accident – then it will cover your mortgage repayments.

Your mortgage repayments (and sometimes other mortgage related outgoings too) will be covered for up to a set period of time (typically 12 months but this can vary from provider to provider) to give you enough time to find another job, or get well etc.

Many people may think that mortgage payment protection insurance is a waste of money, using the old adage “It’ll never happen to me”. However, this is not true. Being unable to work – and therefore having to struggle on state benefits – due to involuntary redundancy, accident or sickness can happen to anyone. It does not discriminate and can strike anyone at any time.

Therefore, if you are in full time employment for more than 16 hours a week and you have a mortgage, then taking out insurance against the financial ramifications makes sound sense.

Despite what the press says, it doesn’t have to be expensive to take out this kind of insurance, and nor do you have to take out a policy with your current mortgage lender. This means you are free to shop around to get a policy that offers you comprehensive protection without a high price tag!

If you are looking for mortgage protection insurance, then do not automatically accept the first quotation you get – premiums can vary wildly, as can the terms of the policy and the benefits.

Do your research – the internet is a quick and easy way to compare policies – and then make a decision from there.

LG Nexus 4

On October 29th, Google will likely be showing off its new Nexus phone, a device that is widely believed to be the LG Nexus 4. The LG Nexus 4 has leaked out numerous times in recent days, culminating with a leak today that all but confirmed all of its major features. As a Galaxy Nexus owner, I’ve been interested to see what Google prepared for 2012 Nexus-wise. Here are my thoughts on the new Nexus phone.

LG Nexus 4 design

From the leaks, it appears that the LG Nexus 4 is going to be a plastic beast once again with a design that’s both heavier and thicker than the Samsung Galaxy Nexus. I am just going to assume that this was because Google wanted to keep the costs down. Something else? The phone looks almost exactly like the Samsung Galaxy Nexus.

Nobody gave the rumour that LG would be chosen as the new flagship partner for Google, but after a litter of leaks, the smart money is on the Korean brand as the next in the Nexus clubhouse.

But how will it actually look? Well, with a litany of leaks spewing from the internet with increasing regularity, it seems pretty likely we know what the Google Nexus 4 will actually look like.

One of the most interesting pictures of the Nexus 4 is one with a worryingly sparkly back, bearing the moniker 'with Google' on the rear.

LG Nexus 4 specs

Specs-wise, it seems almost certain the Nexus 4 will have quad core Qualcomm Snapdragon S4 Pro processor, an 8MP rear camera, 2GB of RAM and of course the latest version of Android.

Wireless charging would be an innovative new feature for the phone too, but of course we'll have to put up with the same non-removable battery and lack of microSD card slot too.

Storage Doesn’t Cut It

It looks like Google might be mirroring its Nexus 7 with the amount of storage its offering with the Nexus 4. Sadly, that’s not a good thing. 8GB and 16GB of storage space is just not going to cut it for any smartphone of mine. I found out the hard way with my 16GB iPhone 3GS and 16GB iPad and I’ll never buy another device that has less than 32GB of storage space.

LG Nexus 4 release date

One thing we can pretty much agree on is the fact that there's a new Nexus phone in the offing, and right on cue Google has announced a special event on October 29 to show off something.

What does that mean for a Nexus 4 release date? Well, it seems that we'll get something in the region of mid-November before we get anything on the shelves in preparation for the Christmas rush.

Update: Carphone Warehouse has revealed various details on its website, including the Nexus 4 release date, which is has as October 30.

LG Nexus 4 price

If the Nexus 4 price is anything like the labels attached to previous Galaxy phones, then we're in for an eye-watering outlay to get your hands on the new handset.

The Galaxy Nexus came in at £41 a month before you could get a free phone, which would put it miles ahead of the likes of the Samsung Galaxy S3 or HTC One X, which are the main competitors on specs at least.

At least the phone would come down in price pretty soon, as that's what happened most of the time with the other Nexii… but perhaps the Nexus 4 can blaze a trail and, wow, we don't know: actually come in at market value.

Update:According to Carphone Warehouse the LG Nexus 4 will be available for free on contracts starting at £31 per month over two years.

LG Nexus 4 competition

There are many rumours about other handsets are launching at the same time as the Nexus 4, with a number of phones being unveiled at once.

The HTC Nexus 5 was one of the first mooted, but that has since been shown as the HTC J Butterfly, the super-phone that will only be available in Japan.

Next up was the Samsung Galaxy Nexus 2, but this was simply due to the model number that fitted in the Nexus line up being spotted online. TheSamsung Galaxy Premier was also 'shown' in benchmarks, but given the lack of Nexus name it's unlikel

source : http://www.techradar.com/news/phone-and-communications/mobile-phones/lg-nexus-4-release-date-news-and-rumours-1105898

http://www.gottabemobile.com/2012/10/19/5-thoughts-on-the-lg-nexus-4-googles-new-nexus-phone/

Bank of America wasn’t overpaid for servicing right, Fannie Mae audit finds

By Clea Benson, Wednesday, September 19, 5:40 AM

Fannie Mae didn’t give Bank of America special consideration in agreeing to pay more than $500 million to transfer servicing of 384,000 mortgages to firms more likely to prevent foreclosures, a U.S. auditor said in a report Tuesday.

Still, the taxpayer-owned company paid more than legally required to Bank of America and 12 other lenders when it spent $1.5 billion for servicing rights on 1.1 million loans from 2008 to 2011, the Federal Housing Finance Agency’s inspector general said in the report.

The transfers were part of a Fannie Mae initiative to cut losses on mortgages at greatest risk of default. The specialty servicers hired to handle the loans, including Ocwen Financial and Nationstar Mortgage, typically do more outreach to distressed borrowers and have a better track record of keeping loans current.

“The amount Fannie Mae paid was consistent with the amounts it had paid to other servicers from which it had purchased mortgage-servicing rights under the program,” the report said.

Bank of America ultimately got $421 million in the 2011 deal because some of the loans were paid off or refinanced by the time it was completed.

The transaction drew attention because it came after Fannie Mae had received $1.3 billion from Bank of America to settle claims over defaulted mortgages. House members, including Reps. Darrell Issa (R-Calif.) and Maxine Waters (D-Calif.), sought the audit to ensure that Fannie Mae wasn’t funneling taxpayer aid to the bank.

Fannie Mae, based in Washington, and smaller rival Freddie Mac of McLean have been operating under U.S. conservatorship since they were seized by regulators amid soaring losses in September 2008.

The audit found that Fannie Mae paid lenders more than required in most transactions because it wanted to negotiate a smooth transfer. Holders of the servicing rights could have tried to sell them elsewhere if Fannie Mae offered the minimum price.

In the Bank of America transaction, Fannie Mae sought to buy servicing rights on a portfolio of loans with a delinquency rate of 11 percent and an unpaid principal balance of $73.6 billion. Fannie Mae estimated that it would lose $10.9 billion on the portfolio if the bank continued to service those loans and would cut that loss by $1.7 billion to $2.7 billion if the portfolio were handled by a specialty servicer.

The inspector general criticized Fannie Mae’s method of computing the value of the loans and suggested that the FHFA should step up its scrutiny of the servicing transfer program.

Jon Greenlee, FHFA’s deputy director of enterprise regulation, said the program was intended to help borrowers stay in their homes, not just to save money.

“The reason servicing transfer transactions such as the one at issue are expected to save money is that the new servicer is better equipped to work with troubled borrowers,” Greenlee wrote in a response included in the audit report.

The FHFA inspector general released a second audit Tuesday concluding that the agency should strengthen efforts to ensure that Fannie Mae and Freddie Mac are better prepared for the failure of the banks that sell and service loans. The enterprises have lost $6.1 billion from failures of four such lenders since 2008.

— Bloomberg News

source : http://www.washingtonpost.com/business/economy/bank-of-america-wasnt-overpaid-for-servicing-right-fannie-mae-audit-finds/2012/09/18/2cdf0f98-01d5-11e2-b260-32f4a8db9b7e_story.html