The fastest way to get your private loan money is to be prepared when you start to apply. Know if you are going to use a co-borrower or not, and then have your paperwork, and your co-borrower's paperwork, all ready.
With the CLC® Premier Loan, you can have your co-borrower immediately apply after you, to see if you preapprove instantly!
Info you will need:
1. Your Social Security Number
2. Your temporary, permanent and prior addresses
3. Your driver's license
4. Your income information if you are employed
Info your co-borrower will need:
1. Social Security Number
2. Permanent and prior addresses
3. Housing expenses info
4. Driver's license
5. Proof of income, like bank statements or pay stubs
6. Employer informationv
7. Email address
Remember! You can always call College Loan Corporation if you have any questions about applying or just apply now!
Paying for second semester could be tough for college students. Overall, it seems most students made it through the first semester, even though loans were harder to find and many loan disbursements were delayed or cancelled.
Students might not be so lucky next semester.
Since August, the credit crisis has grown much worse and so has the economic situation for families across the country. Many families will enter second semester with exhausted savings accounts, extremely limited access to home equity lines of credit and severely depleted retirement accounts – not to mention those parents that have recently lost employment.
Although students shouldn't have problems accessing their federal student loan dollars, some parents who have gone through recent economic problems may not qualify for Parent PLUS Loans (there is credit criteria related to bankruptcy, delinquencies and defaults on other federal student loan debts). Recent mortgage delinquencies or bankruptcy will prevent some parents from accessing parent loans under the current PLUS criteria.
If you were previously using private student loans to fill the gap that free money and federal loans won't cover, expect it to be much more difficult to secure that money next semester. Even parents in good financial standing will find it much more difficult to co-sign for a private student loan now, given that lenders are scarce and credit criteria has grown increasingly strict. Just another reason why it's important to plan for second semester costs early this year. Here is a short list of second semester financing tips:
1. Maximize all of your federal loan options
Make sure you understand federal student loan options and borrowing limits for undergraduates, graduates and parents.
2. Start looking for a lender now
Whether you're taking out federal loans, private loans or both to cover your second semester costs, complete the application process as early as possible this year.
3. Utilize work study money
If you were granted federal work study money, be sure to check with your school for open positions. The jobs are usually on or near campus and they are designed to work around your school schedule. If you don't qualify for federal work study, but still need a small income, consider short-term holiday employment or a flexible part-time job.
4. Talk to your school
Ask your school's financial aid office about all of your financial aid options, including payment plans, scholarships only available through the school, etc. As a reminder, many financial aid offices are closed over the holidays so contact them immediately.
Source
The fastest way to get your private loan money is to be prepared when you start to apply. Know if you are going to use a co-borrower or not, and then have your paperwork, and your co-borrower's paperwork, all ready. With the CLC® Premier Loan, you can have your co-borrower immediately apply after you, to see if you preapprove instantly!
Info you will need:
1. Your Social Security Number
2. Your temporary, permanent and prior addresses
3. Your driver's license
4. Your income information if you are employed
Info your co-borrower will need:
1. Social Security Number
2. Permanent and prior addresses
3. Housing expenses info
4. Driver's license
5. Proof of income, like bank statements or pay stubs
6. Employer informationv
7. Email address
Remember! You can always call College Loan Corporation if you have any questions about applying or just apply now!
Source
Money may be tight for you and your family this year. And chances are your school's costs have gone up since last year. Many families are really digging deep and making sacrifices to cover college costs. As you're making decisions on how to pay for college, we just want to make sure that you aren't making any mistakes that might hurt your financial future. If any of these sound familiar, there is still time for you to reevaluate your financial aid decisions and work with your financial aid office.
Potential Financial Aid Mistakes
1. You walked by the financial aid office, but didn't check for new scholarship applications
It's true that your chances of winning the world's most popular scholarship essay contest are one in a million. But once you are accepted into a school, the universe becomes smaller and your chances of winning increase. Suddenly you are competing against just freshman, just female engineers or just chess club members. There are all kinds of scholarships, provided by corporations, alumni or special interest groups. Don't believe it? When you find a scholarship at your school with only 3 other applicants, you will!
2. You didn't accept your work study money
Are you kidding? You turned down a good hourly wage, working on or near campus, with work hours scheduled around your classes – in a recession? Most students love their work study job because they generally get to pick from a list of activities like tutoring kids, working in the library or helping out with intramural sports. In this financial environment, even part-time work is difficult to find. Unless you already have a good gig lined up or you are just loaded with cash from rich relatives every month, work study is highly recommended by other students. Even if you weren't awarded work study on your financial aid award letter, ask your financial aid office if there are any types of work study programs available to you.
3. You didn't talk to your financial aid office
If you are having difficulties paying for school, or your family's situation has changed, check with your financial aid office. Your financial aid package for this year is based on the FAFSA you completed last January, which takes into account your families income from the previous tax year. For example, if one of your parent's has become unemployed, you may be eligible for more financial aid. Don't put off going just because there is a long line; everyone else probably just got their paperwork too. If you can wait in line for a $10 movie, you can wait in line for a $10,000 tuition bill.
4. You didn't maximize your federal loans
When you graduate and have a job, you will realize that the Federal Stafford Loan was a great decision. It's cheaper than other options like private loans or credit cards. There are flexible repayment plans and deferment protections in case you can't find a job right away, or run into financial hardship.
One student I know is working two jobs until 1 a.m. in the morning and making poor grades because someone told her that "student loans are bad." Well, so is flunking out of school. It's a personal choice nearly every student must face: "Am I going to incur debt to complete my college education?" Examine your situation with your family and your financial aid officer. If you find that you need to borrow money, the Federal Stafford Loan (or Federal Perkins loan if you qualify) is a great first choice.
5. You took out private loans without maximizing your other financial aid
Private loans are necessary for many students to fill the gap once they have exhausted free money (scholarship, grants) and federal loan limits. Unless you're an independent student, you can only borrow between $5500 and $7500 in Federal Stafford Loans as an undergraduate, depending on your year in school. It's true that private loans don't require a FAFSA and so some students are tempted to just use the private loan to cover the full amount they owe. Don't do it. Take the extra time to complete the FAFSA. Who knows, you may qualify for grants or federal work study money. In addition, you should always maximize federal loans first before taking out private loans because they will cost you less over time. You'll thank us when you are paying them back.
Graduate students, Mistake #5 especially applies to you. You are eligible for increased federal loan limits ($20,500 in Federal Stafford Loans, $40,500 for medical professionals). If the Stafford Loan doesn't cover everything, the Grad PLUS Loan is also an option you may want to check out.
Source
Your mortgage may have a 30-year term, but not many homeowners stay with the same loan for that long. In fact, the average American refinances his or her mortgage every four years, according to the Mortgage Bankers Association. That’s because paying off your present mortgage and taking out a new one can mean big savings over several years. However, mortgage refinancing comes with a price in the short term, so it’s important to consider both the costs and benefits before making your decision.
Why refinance?
Here are some reasons to consider mortgage refinancing:
* To obtain a lower fixed rate. If you took out a fixed-rate mortgage several years ago and interest rates have since dropped, refinancing may lower your payments considerably. A $150,000 mortgage with a 30-year term and a rate of 8 percent, for example, carries a monthly payment of $1,100. The same mortgage at 6 percent will have a payment of less than $900 a month.
* To switch to a fixed rate or an adjustable rate mortgage. Adjustable-rate mortgages (ARMs) offer lower interest rates initially, but some homeowners find the fluctuations stressful. If rates are on the way up, you might consider locking in at a fixed rate and consistent monthly payment. On the other hand, if you want to reduce your monthly payments and are comfortable with the interest rate changes of an ARM, it could save you money to refinance to an ARM.
* To improve the features of your ARM. Mortgages with adjustable rates have protective caps that limit how much your payments can increase in any given year and over the full term of the loan. You may be dissatisfied with the caps on your current ARM and feel you can negotiate more favorable features if you refinance.
* To build your home equity faster. If a recent change in your financial situation has made it possible for you increase your monthly payments, you might want to refinance your mortgage with a shorter term. The higher payments will enable you to pay off your home more quickly and to save substantially on long-term interest charges. However, if you are disciplined you can also opt not to refinance and simply pay more towards your principal each month.
* To reduce your monthly payments. Refinancing for a longer term will lower the amount you have to pay each month. You will end up paying more in interest charges over the life of your loan, but if you’re having difficulty making your current payments, this strategy could provide some relief.
* To turn home equity into cash. You may want to take out a new mortgage with a larger principal, in order to turn some of your home equity into cash for a major expense. This is called cash-out refinancing. The advantage of taking out a loan secured by your home is that you can get a lower rate of interest than you can with an unsecured loan or credit card. However, if the interest rate offered for your refinanced mortgage is higher than your current rate, a home equity loan or line of credit might be a better choice.
Is mortgage refinancing right for you?
If you’re refinancing in order to pay less interest, you won’t usually see the savings right away. That’s because lenders typically charge fees when you take out a new mortgage, and you may also have to pay a penalty for getting out of your old one. To determine whether refinancing makes financial sense for you, consider these issues:
* How long you plan to be in your home. If you expect to move in a year or two, you may never realize the potential savings you’d get from refinancing. As a rule of thumb, the longer you plan to stay in your current home, the more sense it makes to refinance.
* The prepayment penalty on your current mortgage. Many mortgages carry a penalty if you pay them off early. The amount varies, but it is usually a small percentage of the outstanding balance, or several months’ worth of interest payments.
* The costs of the new mortgage. When you take out a new loan, your lender may charge a number of fees including application, appraisal, origination and insurance fees, plus title search, insurance and legal costs that can add up to thousands of dollars. Lenders may also charge discount points, which are paid upfront to secure a lower interest rate. As a guideline, expect fees to eat up any potential savings unless your new interest rate is at least a half a percentage point lower than your current one.
* The true difference in borrowing costs. When you’re considering refinancing, remember that the posted interest rate doesn’t reflect the entire cost of the mortgage. The amount you pay over the life of the loan will also be affected by the length of the term, whether your rate is adjustable or fixed, whether you paid discount points, and what upfront and ongoing fees you incur. One way to compare mortgage costs is to look at the annual percentage rate (APR), which takes into account not only the base interest rate, but also points and other charges. All lenders must follow the same rules when calculating the APR, so it’s a good basis for comparison.
* Your reduced tax savings. If you claim mortgage interest on your tax return, refinancing to a lower rate will mean that you’ll have less mortgage interest to deduct. You will still save money overall, but your real savings from refinancing may not be as large as you first believed. Consult a tax advisor who can help you understand the tax implications of refinancing.
The break-even point
In the end, deciding whether the cost of mortgage refinancing is worth it comes down to a simple question: “How long will it take before I start to save money?” In theory, this is a simple calculation. You start with the amount you will save by lowering your monthly payment. Then you add up all the costs associated with refinancing and divide the total by your monthly savings. This will reveal the number of months it will take to reach the break-even point.
For example, let’s assume that refinancing would lower your payment from $1,000 to $800 (for a savings of $200 per month) and your prepayment penalty, closing costs and points add up to $5,000. Divide $5,000 by $200 and you’ll see that it would take 25 months to realize the savings.
In reality, however, your break-even point also depends on other factors, including your tax situation and whether you pay closing costs upfront or add them to the principal of your new mortgage. If you are refinancing and your home has appreciated in value, you may also be able to save by canceling your private mortgage insurance.
For a more accurate estimate, use our refinancing calculator. Or consult a financial advisor who is familiar with your tax situation.
Source : LendingTree
Your house is a potential source of money if you are willing to sacrifice some of your equity in return for liquidity. Cash-out mortgage refinancing is one way to access this cash.
What is cash-out mortgage refinancing?
Cash-out refinancing involves refinancing your mortgage for more than you currently owe and pocketing the difference. If you have been paying down your mortgage for some time, then the principal is likely to be substantially lower than what it was when you first took out your mortgage. That build-up of equity will allow you to take out a loan that covers what you currently owe -- and then some.
For example, say you owe $90,000 on a $180,000 house and want $30,000 to add a family room. You could refinance your mortgage for $120,000, and the bank will then hand over a check for the difference of $30,000.
You can take the difference and use it for home renovations, second-property purchases, tuition, debt repayment or anything else that needs a significant amount of cash. What’s more, you may be able to get a more favorable interest rate for your refinanced mortgage.
However, if the interest rate offered for your refinanced mortgage is significantly higher than your current rate, this may not be a sensible choice. A home equity loan or line of credit (HELOC) might be a better option in this instance.
Typically, homeowners are allowed to refinance up to 80 percent of their property’s value. Certain lenders may allow you to borrow more than 80 percent of your home’s value, but you may have to pay private mortgage insurance, or pay a higher interest rate.
Cash-out refinancing versus home equity loans
Homeowners sometimes confuse these two pools of home-financed cash. Cash-out refinancing and home equity loans are quite different. Cash-out refinancing is a replacement of your first mortgage; HELOCs are separate loans on top of your existing mortgage. In other words, with refinancing you get a new mortgage, not a second loan against the equity in your home.
Refinancing usually makes sense only when there has been a drop in interest rates and you want to lock in a new mortgage at a lower rate for a longer term than your existing mortgage. It can also benefit those who want to refinance their mortgages for a longer term to lower their monthly payments.
Source : Lendingtree.com
