The Uglycow Finance » mortgage

Does money can buy happiness?

admin — Thu, 15 Sep 2011 02:37:17 +0000

In our country, the period for repayment of the mortgage is variable, although the average is about 30 years. There are also deals on the market with maturities that extend up to 40 or 50 years, though these are rare.

The applicant’s age plays a fundamental role in determining the period for refunding the mortgage, as the cap is tied to your age at the end of the mortgage. In general, banks now determine the maximum age 75 years for repayment of the mortgage. Thus, if a person has 30 years to apply for a mortgage could get within 40 or even 45 years, but not an applicant for 45 years, which would be granted a maximum of a 30-year mortgage.RWT8NM2WVUR6

Is better a short term mortgage or long?
There are ideal repayment terms for each profile, but couldn’t be said to exist within ideal. This largely depends on the applicant’s income, age and conditions of the mortgage. Here are some tips that will be useful to choose the best repayment term of your mortgage:

1. Mortgage payment: If you choose a longer repayment period will pay a lower premium for longer, which means that you must pay more interest and, therefore, pay more for the mortgage. Conversely, if you can afford a higher fee you pay less interest, reducing the total cost of the mortgage. It should be borne in mind that banks calculate the share of the mortgage represents more than 35% of your income (including your other debts), so an extension of the repayment period will always reduce that percentage and broaden your chances of getting a mortgage. If you calculate the mortgage payment, there are very practical and simple calculators to help you adjust the fee to the repayment period.

2. Tax benefits: The mortgage allows you to get tax deductions, but only on a maximum annual amount, currently € 9,015.18. If the fee you pay for your mortgage is lower than this limit, you might want to increase what you pay now for tax benefits in income tax.

3. Fees: Some mortgages may allow you to perform capital cancellations, whether partial or no fees. If the bank offers this possibility, you may decide to opt for a longer repayment period to reduce the amount of the fee. These flexible mortgages allow you to reduce the outstanding principal on time, allowing you to pay a lower monthly payment or reduce the repayment period.

Who understands the financial advisors?

admin — Sat, 18 Jun 2011 04:56:01 +0000

Forgive me financial advisers, but their tips are often unintelligible. Moreover, I’m not the only one who thinks so: 50% of investors do not fully understand acknowledge the advice of his counsel, and that nearly 90% of professionals considered to have done his job and left her satisfied customers according to a etude which echoes the Gestiohna brokerage.

Another report, prepared by the Centre Inverco gives us more data and suggests that the more dynamic and younger the investor, the more knowledge you have of financial products. The trouble is that the profile of the average saving is, rather, that of a man older than 50 years and a conservative in their investments.

To facilitate understanding between client and consultant, Gestiohna includes “10 key concepts that every investor should know in times of crisis” and which I reproduce verbatim:

REDUCTION OF BETA is the risk indicator reflecting the sensitivity of a stock to market fluctuations. With a beta less than one, the action will tend to collect only part of the market movements, making it more stable and talked of a “defensive value.”

Problem subprime mortgage credit risk borrowers (people with no income, no job, no assets) in the U.S. residential market, which highlighted the shortcomings of a system based on subprime mortgages and was one of the triggers for world economic crisis.

DIVERSIFICATION OF THE INVESTMENT PORTFOLIO selection of securities, securities, sectors or countries without a strong relationship with each other to reduce the risk incurred by the investor.

INVESTMENT FUNDS a Gestiohna According to experts, “in the current economic environment is the most appropriate product for individual investors because they allow you to build a portfolio to maximize profitability without incurring high risks.”

Hedge funds are hedge fund that were once identified as one of the main culprits of the crisis by their speculative positions, and that during the past year, have staged a historic way of capital has led to the demise of much of this industry. However, it seems that once again regain its strength.

INVESTOR PROFILE a saving features that determine their investments based on their expectations and their ability to take the risk. The Spanish investor profile is conservative, older than 50 years, which relies more on banks than other sources when choosing a product in which to invest, according to a recent study presented by the Centre Inverco.

Bailout injection of public money being carried out by governments of different countries for the revival of their national economies.

RATING AAA (Triple A) A Maximum credit quality rating of a country’s public debt issued by agencies like Moody’s. Spain recently became the first state to AAA in face possible loss of that designation. Spain currently holds the top rating but, according to Moody’s latest report, the fiscal adjustment will be “long and painful.”

THRESHOLD 10,000 points psychological level of Stock Exchange listing, in case of sales or exceeded, triggers strong contrasting moods. During those days can rein restlessness, or euphoria among investors.

Deviation parameter that measures the price risk of financial assets in terms of fluctuations or variations in price over a period of time.

Bread today, hunger for tomorrow

admin — Sat, 11 Jun 2011 03:30:09 +0000

The funding problems that entrepreneurs are living in this country are clearly reflected in the Cotizalia news published today. Which is commented as “an undetermined number of entrepreneurs has been pushed to seek mortgages, with the guarantee of own home or other real estate assets, in order to meet the cash requirements of their businesses or even the salaries of their employees.”

This approach contradicts the law of balance of the company’s financial structure, by which a long-term loan, such as a mortgage loan should be used to finance the acquisition of an asset in the long run, as is the buying a property, and not to finance short-term assets. However, employers have to resort to this type of financing for much difficulty to obtain bank loan at the shorter term.

This imbalance can pass bills to applying for funding that compromised his return by the different rates of generation of active flows in the short and long, and the result in the loss of good mortgage in favor of the lender bank guarantees operation.

In other words, can mean bread today, hunger for tomorrow.

Choosing the mortgage term

admin — Thu, 24 Feb 2011 12:08:45 +0000

The period for repayment of the mortgage is very variable, although the average is about 30 years. There are also deals on the market with maturities that extend up to 40 or 50 years, although the latter are rare.

The applicant’s age plays a key role in determining the period for refunding the mortgage, since the limit is tied to your age at the end of the mortgage. In general, banks now determine the maximum age 75 years for repayment of the mortgage. Thus, if a person is 30 years old to apply for a mortgage could get within 40 or even 45, but not an applicant for 45 years, which would be granted a maximum 30-year mortgage.

Better a short or long term mortgage?
There are ideal repayment terms for each profile, but cannot say that there is an ideal time. This largely depends on the applicant’s income, age and conditions of the mortgage. Here are some tips that will be useful to choose the best repayment term of your mortgage:

1. Mortgage payment: If you choose a longer repayment period will pay a lower premium for longer, which means that you will pay more interest and, therefore, pay more for the mortgage. Conversely, if you can afford a higher share will pay less interest, reducing the total cost of the mortgage. It should be borne in mind that banks calculate the mortgage payment does not involve more than about 35% of your income (including the rest of your debts), so that extending the repayment period will always reduce that percentage and expand your chances of getting a mortgage. If you want to calculate the mortgage payment, there are very practical and simple calculators to help you set the quota at the time of return.

2. Tax benefits: The mortgage allows you to get tax deductions, but only on a maximum annual amount, currently of 9.015,18 €. If the fee you pay for your mortgage is lower than this limit you may want to increase what you pay now for tax benefits in the income statement.

3. Fees: Some mortgages may allow capital make cancellations, whether partial or no commission. If the bank offers this possibility, you may decide to opt for a longer repayment period to reduce the amount of the fee. These flexible mortgages allow you to reduce the outstanding principal on time, allowing you to pay a lower monthly payment or reduce the repayment period.

How to make the most of Tax Refund

admin — Sat, 19 Feb 2011 06:42:01 +0000

The Department of Consumer Law in New York City has this bulletin on different ideas of how to take advantage of the refund you receive to complete your taxes. These tips also apply to any amount of money you receive might not be part of your monthly income: A panel, double salary, an inheritance, a raise, etc… Here goes:

A tax rebate puts money in your pocket that can help you pay your bills. If you are careful in handling the refund, you can also use it to achieve other financial goals.

Reduce your debt
Debt interest cost money, so if you cut it, eventually it will help save more. If you have loans or multiple credit cards, first pay the debt with the highest interest.

Start an emergency fund
Place a portion of their refund into a savings account to hold funds for emergencies or financial need.

Make an extra payment on your mortgage
If your other expenses are covered, consider making an extra payment on your mortgage. Make sure that credited to your principal. This will help you save money on interest and reduce the time needed to repay the loan.

Start or Improve your retirement savings
If you have a retirement account yet, put part of their refund into a retirement account such as an Individual Retirement Account [Individual Retirement Account (IRA).] Be sure to make comparisons to get the best deal: the annual fees and tax advantages may vary depending on the account.

Other things to consider:

* Use the money to improve their knowledge and get a better job (education)
* Use the money to start your own business or investment account.
* If you have been good all year, use the money to go on vacation you and your family (provided you already have an emergency fund)
* Donate a portion of this money to the needy.
* Have fun! Live a little!