Business, economic development - the unofficial Chamber of Commerce

Did you know that newborn children get a free £250 voucher from the the State to deposit in a Child Trust Fund. The money can be invested in any one of three sorts of CTF account, Stakeholder - a shares-based account that changes into cash, a savings account or a shares account.

Scottish Friendly is an authorised provider of the Child Trust Fund. The Government is keen for the public to have access to Stakeholder accounts and this is the type of account that we offer. This means that:

• Investments are saved into our Managed Growth Fund, which aims to provide good growth potential.

• It invests in part in shares to take advantage of potentially higher returns over 18 years, compared to a cash deposit account (although the value of shares can fall as well as rise whereas capital would be protected in a deposit account).

• It is available with a low ‘Stakeholder’ funds charge of just 1.5% per year

• When attaining the age of 18 the young person will receive a lump sum, totally free of Capital Gains and Income Tax under present law.

• It’s affordable - additional payments can be placed from as little as £10

Anyone - parents, grandparents, aunts and uncles, friends - can add to the Child Trust Fund to increase it to a maximum of £1,200 per year (once added, that money cannot be withdrawn). All this means that our Stakeholder account provides a good balance between possible high returns and a reduced level of risk. There is also the extra assurance that our account is in accordance with the Government’s stakeholder criteria. Nevertheless this doesn’t mean that returns are guaranteed or that Stakeholder accounts are for everyone. Remember that the value of shares in the Managed Growth Fund (where your Child Trust Fund money is invested) can go up as well as go down and is not guaranteed.

Only children whose birthday is on or after 1st September 2002 are entitled to start up a Child Trust Fund. If you have older kids who are not qualified you could look at investing for them with a Child Bond - it’s a tax-free savings plan for long-term growth.

We’re focusing on technical analysis in this article with a description of some of the important indicators.

We could say, all wealthy traders use technical analysis but not all technical analysis traders are wealthy although T.A. is the most precise way of trading the Forex market. It’s also useful note that fundamentals play their part in indicating whether a price will move up or down. It gives you the edge over other traders.

Technical Analysis is so powerful because of a few reasons

1) it represents numbers. All information and its impact on the market and traders is represented in a currency’s price.

2) It helps to predict trends and the foreign exchange market is very ‘trendy’.

3) Certain chart patterns are consistent, reliable and repeat themselves. T.A. helps us to see them.

Here’s one way of putting technical analsysis into perspective (wish I had a dollar each time I said ‘technical analysis’). We all know that prices move in trends. Research has shown that those that trade ‘with the trend’ greatly improve their chances of making a profitable trade.

Trends help you become aware of the overall market direction and often rescue us from less then profitable entry points. I attended a 2 day course costing me over $2500 AUD and the biggest thing I learned from it was the need for discipline and emotional control. The content was so basic that within the next 3 or 4 articles, I would have covered all of it. So learning the ‘tools of the trade’ the technical indicators and their applications will help you to diagnose what the market is doing but even then you need to expect ups and down and trade with emotional control.

Stay with the trend, follow the price.

Find the price of the currency pair. If EUR/USD is 1.4224 and moves to 1.4180 then 1.4090 then the market is in a down trend. Concern yourself only with what the market IS doing not what it might do. Listen to the markets and the indicators will backup what they are telling you.

Moving Averages.

Tell you the price at a given point of time over a defined period of intervals. They are called moving because they give you the latest price while calculating the average based on the selected time measure.

They lag the market so to give you an indication of a change in trend, use a shorter average such as a 5 or 10 day moving average. By combining a shorter term and longer term M.A. you can detect a buy signal when the shorter term crosses the longer term moving average in the upward direction. Or a sell signal if it crosses in a downward direction. For example, you could use a 5 day versus a 20 day moving average or a 40 day versus a 200 day moving average.

There are simple moving averages, linearly weighted which gives more importance to the recent prices or exponentially weighted. The latter is a favourite because it considers all prices in a time period but emphasizes the importance of the most recent price changes.

MACD

Based on moving averages, a MACD plots the difference between a 26 exponential moving average and a 12 day exponential moving average, with a 9 day used as a trigger line. If a MACD turns positive when the market is still plummeting it could be a strong buy signal. The converse also works.

Bollinger Bands (sounds like an elastic band)

Prices tend to stay between the upper and lower bands. They widen and become more narrow depending on the volatility of the market at the time. A sell signal would be when the moving average is above the Bollinger bands and vice versa for a buy signal. Some traders use it in conjunction with RSI, MACD, CCI and Rate of Change.

Fibonacci Retracement

Describe cycles found throughout nature and when applied to technical analysis can find shifts in the market trends. After a climb prices often retrace a large portion sometimes all of the original move. Support and resitance levels often occur near the Fibonacci retracement levels.

RSI

Relative Strength Index measures the market activity to see whether it’s overbought or oversold. This is a leading indicator so helps to indicate what the market is going to do (awesome!) A higher RSI number indicates overbought (so expect a bearish shift) and a lower number indicates oversold.

Successful traders will generally use 3 or 4 signals to provide a more conculsive signal before entering a trade.

Always remember, “If in doubt, stay out!” Technical analysis doesn’t factor in political news, a country’s economic profile or fundamental supply and demand.

Technical Analysis helps us figure out how much money to risk on a trade. How and when to enter the market and how to exit the trade for profit or to minimize loss.

I sincerely hope you found this article useful.

For a complete guide to Forex trading, for beginners and advanced traders, visit http://www.wealthyforex.com Here you’ll find arguably the best resources available for Forex trading. For traders already making excellent returns, you’re sure to find tips that will improve your trading.

A credit card can be an asset to your lifestyle, but if not
handled carefully it can become a liability, especially if you
find it so convenient and easy to use that you lose control of
your spending.

This short guide will help you understand how you can use your
credit card so it works to your advantage, not against you.

Advantages

A credit card can:

1. Offer free use of funds, provided you always pay your balance
in full, on time. 2. Be more convenient to carry than cash. 3.
Help you establish a good credit history. 4. Provide a
convenient payment method for purchases made on the Internet and
over the telephone. 5. Give you incentives, such as reward
points, that you can redeem.

Disadvantages

On the other hand, credit cards can:

1. Cost much more than other forms of credit, such as a line of
credit or a personal loan, if you don’t pay on time. 2. Damage
your credit rating if your payments are late; 3. Allow you to
build up more debt than you can handle; 4. Have complicated
terms and conditions;

What is a credit card?

A credit card is more then a simple piece of plastic, it is
first and foremost a flexible payment tool accepted at 30
million locations worldwide, and if the card balance is paid off
every month, then no interest is charged on purchases made so,
essentially, short-term credit is granted without the consumer
paying any interest.

Among its many features it provides:

1. Access to unsecured credit (no collateral required against
amounts charged) 2. Interest-free payment from time of purchase
to the end of the billing period 3. Instant payment of
purchases, allowing for instant receipt of goods and services 4.
24/7 access 5. Fraud protection

However before you decide to use your credit card, carefully
consider all of the factors and weigh them against your personal
needs and values.

What about credit card control?

Handling money and credit cards wisely is a talent few of us are
born with. But it is a skill that can easily be learned. The
place to start is with budgeting.

What is a Budget?

It’s simply an organized way of managing your finances,
basically, it gives you an overall picture of where your money
is coming from, when it’s coming in and how it’s being spent. A
budget should be flexible, changing according to your
circumstances.

Why Budget?

Budgeting helps us achieve short-term goals like paying the
monthly bills on time; it’s also for longer-term financial goals
like buying a home, a car, paying for an education, a wedding or
a holiday. When you take control of your financial affairs,
you’re more confident about the future.

A budget is key to financial control. It gives you a “Polaroid
picture” of where you stand financially and where you’re
heading.

Credit card control tips

Use a low or no-fee credit card and save on the annual fee that
some companies charge.

Only charge to your credit cards what you can pay off in full
when the bill comes.

You might not use your credit card as much if you start
believing that you have to pay off your entire balance at the
end of each month.

A good way to help to reduce what you pay on your credit card is
to search for a card with a lower interest rate. Many financial
institutions now offer at least one of these types of cards.

Remember that when you take a cash advance on your credit card,
the interest starts accumulating immediately and not on the due
date of your credit card bill.

Also keep in mind that if you make only the minimum monthly
repayment you may never get out of debt.

Conclusion

The main advantage of having a credit card is convenience but if
you’re not good at budgeting and managing your finances, the
over-use of credit cards can leave you with a debt that’s very
difficult to pay back.

Carmin Olivier is the webmaster of www.findyourcreditcards.com
If You’re Looking for Good Credit Card Deal visit
http://www.findyourcreditcards.com

You’re always broke. At least, you feel that way. Your savings account is collecting
more dust bunnies than the corner under your bed and your paychecks just don’t
seem to stretch far enough. Take heart: With a few simple tricks, you can save more
than $100 each month.

1. Get a library card.

That often overlooked piece of plastic is your passport to good free stuff like
movies, books, and CDs.Why Pay $3 to rent a movie? Or spend $20 on that new
novel by so and so that you just have to read? Borrow them for free at the library. It
is a treasure trove of good stuff. You never know what you’ll find !

2. Cook at home.

Pack that lunch. Forgo that dinner out and fire up your stove. Eating out eats money
faster than the IRS. Watch this add up:

3 lunches out during the workweek @ $7 each =$21

2 dinners out during the week @ $11 each = $22

Grand total for the week =$43

If you do it every week for a month = $172/month

Every month for a year = $ 2064

That’s a lot of lettuce. Wouldn’t you rather use that money to go on vacation or pay
off your Visa bill? Eating at home is better for you and a whole bunch cheaper.
Not knowing how to cook is no excuse. Invest in a good cookbook and use it. (Or
borrow one from the library!) I bought a copy of 1001 Low-Fat Recipes and haven’t
looked back since.

3. Thrift baby, thrift!

Don’t go to the mall and spend $20 or even $60 on brand-new clothes. Go thrifting
instead and spend five. This year, I bought two like-new sweaters — one Banana
Republic and one Express — for a grand total of $7. Now isn’t that better than $50
each?

You never know what is waiting for you at the thrift store, but that’s half the fun.
And, your money is going to a help a nonprofit rather. It’s almost like shopping
without guilt.

4. Check that bank statement!

Do you know what magic fees the bank is charging to your account?

• How much is the bank charging to maintain your checking account?

• Can you get a free account or a better rate?

• Are they crediting your account correctly?

• Is a company still deducting automatic payments even though you cancelled your
service?

Keep your eyes peeled. Most of all, watch those ATM charges. Using the ATM can
cost you a bundle in fees. If you use another bank’s machine watch out. You’re
getting charged twice — once by your bank and once by the other– just to grab
that quick $20 you needed for lunch.

5. Make Your Own Vanilla Soy Latte.

Starbucks is everywhere, and their creamy fancy coffee drinks are good. Too many
will lead you straight to the poorhouse. Don’t go cold turkey, by any means. Cut
back or make your own steamy beverages.

My husband was drinking us out of house and home, buying three cups of $2 coffee
a day. So we bought an industrial-size thermos and some coffee beans. We send the
thermos to work with him everyday and keep those precious dollars in the bank.

My weakness is hot chocolate. The other day I paid $4 for a grande hot chocolate at
a local cafe. That one glass cost me more than one gallon of milk, so I decided to
turn cheap and start making my own at home and at the office.

6. Drink That Six Pack at Home This Weekend.

Do you really need to spend $50 every Friday night boozing it up with your friends?
When I was single, I spent all that and more every weekend just to go out and
socialize. I’m not asking you to be a recluse. Just give up one of those nights every
month and use the cash for something else. Pay extra on a student loan or tuck the
money away in your savings account to help buy freedom from your slave-driving
boss.

If you’re feeling really ambitious, give up two nights a month and invite your friends
over for movies and beer instead. Drinking at home is much cheaper, and you still
get to hang out with your friends.

7. Get on the Phone or on the Internet and Haggle.

Call your credit card companies and haggle for a lower interest rate. If they won’t
give it to you, switch to a low or no interest card. Last year, I switched from a high
interest card to one with no interest for six months. I saved a few bucks while I paid
off the balance. It’s worth it. Why give 20 percent or more to the people who send
you nasty bills and revel in your financial ruin?

Search for coupon/ discount Web sites and see if you can lower your utility and
phone bills or car insurance by switching carriers. Be sure to read any fine print on
deals that seem to good to be true.

Oh, and don’t forget the phone company. Do you really need call waiting, privacy
manager and wire maintenance service? I didn’t think so.

See? That was easy. Now you are well on your way to saving money each and every
month.

Denise Trowbridge is an award-winning journalist residing in Ohio. Her work has
appeared in newspapers and magazines across the United States, as well as on her
site http://www.DeniseTrowbridge.com.
Denise is also the editor of the women’s Web magazine,
http://www.PussycatMagazine.com.

If you’re shopping for financial planning services, it may seem
like a jungle out there. There are advertisements everywhere,
and everybody seems “nice,” but nice won’t cut it when it comes
to your money. How can you cut to the chase and find a financial
planning expert that you can trust.

Start by learning what the different designations mean. You may
have noticed that there are three popular financial designations
that most financial planners hold. You’ll want to choose one
with one of the following designations.

Like many CPA’s, a Certified Financial Planner (CFP) must attend
about two years of training and pass a rigorous test. This
designation is given by the Certified Financial Planning Board
of Standards, a national organization. After two years of
preparatory courses, a Certified Financial Planner must earn a
passing grade on a ten-hour test given over the course of two
days. The Financial Planning Association can provide you with a
listing of Certified Financial Planners.

You may have also encountered some Chartered Financial
Consultants. These graduates of American College in Pennsylvania
have completed a series of exams and obtained real life
experience before earning their designation. However, the
program is geared more toward the insurance profession than
broad based financial planning. The Society of Financial
Professionals can provide you with a listing of these
consultants.

The American Institute of Certified Public Accountants offers
its own designation, a Personal Financial Specialist (PFS).
Certified Public Accountants can earn this additional
designation by completing a series of comprehensive tests and
demonstrate experience in financial planning. Most of these
designates are members of the National Association of Personal
Financial Advisors, and they can refer you to a PFS in your area.

All of the above certifying agencies require at least three
years of experience prior to certification. Other designations
do exist, but these three are the most reliable. Since many
unscrupulous individuals decide to call themselves “financial
planners,” you’d be wise to look for one with a certification
from a nationally recognized organization.

Since the Securities and Exchange Commission doesn’t regulate
smaller financial advisors (those with under $25 Million under
advisement), it is up to you to screen your financial planner
carefully.

You can begin by checking on the website of the National
Association of Securities Dealers website. They list financial
planners who have been disciplined on their website. Information
is also available by telephone from this association’s toll free
number (800-289-9999). Also check with your state’s securities
division for disciplinary actions and complaints.

Ask your planner for a copy of Form ADV, Part II. If you aren’t
familiar with the form, they will be. This form is required by
the Securities and Exchange Commission from every financial
planner and should spell out how and what the planner will be
paid and any incentives they may earn. Sometimes they will
provide this information in brochure or pamphlet form, but
you’ll know up front what your fees will be.

Finally, check references. A reputable planner won’t mind giving
you a few references to call. Find out if they handle portfolios
similar to yours and if the client is satisfied with their
services. Ask about fees.

It’s your future, so doing a little homework up front and making
sure that you’re getting what you pay for is well worth it in
the long run. Make sure that your financial planner holds a
nationally recognized designation and check him out before you
hand over your hard earned money. Your time and effort is a wise
investment when shopping for a financial planner.

The time has come to buy a house. Questions buzz around in your head like a swarm of angry bees: “How much can I borrow? How much do I have to put down? How much will my payments be?” Well, let me suggest starting with the “How much can I borrow?” question.

There are many factors you need to take into consideration when purchasing a home. First and foremost, ask yourself what size monthly payment you can afford. When determining how large a mortgage you can afford, be sure to factor in all your current expenses such as car payments, credit card bills, student loans, utilities, and the like. You may also want to factor in how much you spend on things like entertainment, eating out, and traveling. You don’t want to add a mortgage payment and say goodbye to your social life. Instead, you want to make sure that you’re not overextending yourself financially so you can enjoy a good quality of life.

At the present time, most lenders will allow for a whopping debt-to-income ratio of 45% - 50%. Your debt-to-income ratio is the sum of your mortgage payment and any other credit card or loan payments, divided by your monthly gross income. Lenders use this ratio to help determine your credit worthiness. All of your revolving debts along with your mortgage payment divided by your monthly gross income should not exceed the 36% - 45% debt-to-income ratio. Here’s a quick formula to help you figure out how much you can afford to put toward your monthly house payment:

–Multiply your gross monthly income by 0.45

–Subtract your non-mortgage debt payments from the result

–What’s left is your allowable mortgage payment

So, if we have a couple with a combined monthly gross income of $5000 and they pay $700 a month toward two auto loans and one credit card, they would qualify for a monthly payment of $1550.

In case you don’t know, not all of your monthly housing payment goes toward your principal and interest. A portion must go toward homeowner’s insurance and property taxes. I mention this because on most mortgage calculators that’ll you use, you’ll need to enter these figures to get an accurate idea of what your real monthly mortgage payment will look like, and you’ll need the numbers to figure out how much of a house you can afford.

Property taxes are typically a percentage of your home’s assessed value. To calculate property taxes, local jurisdictions generally multiply the tax rate by a home’s assessed value. For example, if you pay 0.5% in property taxes of the assessed value, a home assessed at $250,000 would have a yearly property tax bill of $1,250. In order to find out the tax rate, you will need to contact your county tax assessor, or a local mortgage broker or bank may be able to assist you. As for the homeowner’s insurance, your best bet is talking to a local broker or bank to get a general idea of what it is for your area. Mortgage calculators will ask you for a percentage rate sometimes and others will ask for a yearly figure. It can be confusing for a new buyer; so don’t be afraid to seek a little assistance.

Figuring out how much you can afford to put toward your monthly house payment is a start. Now, you want to know how much house you can afford. There are mortgage calculators galore that will help you do this, but, as I mentioned above, they will require you to enter real estate taxes, homeowner’s insurance, and interest rates. Once you know how much you can comfortably spend a month toward a home, and you’ve gathered your tax and insurance rates, you only need an idea of what kind of interest rate you’ll get. You can probably kill three birds with one stone by trying to get rates for the taxes, insurance, and interest rate in one phone call. Once you have an idea of what your interest rate may be, you can plug in all your numbers on any of the numerous mortgage calculators on the internet to get a good idea of what you think you can afford.

Afterwards, if you like, you can call a local bank or broker and get pre-qualified to see if you’re numbers were in the ballpark. If your figures are similar, congratulations on a job well done. If your results are different, take the time to figure out why and don’t be afraid to ask questions. Remember, buying a house is one of the biggest financial decisions of your life. You owe it to yourself to be as thorough as you can. By taking the initiative to read this article, you’re already ahead of the learning curve. Keep up the good work, and happy house hunting.

Brian Pollard is a loan officer/marketing coordinator for Bend Mortgage Group Ltd. and mortgage company in Bend, Oregon.

Normally, when you’re looking to consolidate credit card debt
you have the following options: get a debt consolidation loan
-or- apply for a home equity loan. But if your credit card debt
is still manageable, you may want to consider consolidating your
balances to a 0% APR
credit card instead. Using a 0% APR credit card will help
you spend more money paying off your balances, and less on
interest charges!

To use a 0% APR credit card to pay off your debts, follow these
steps:

1.) Transfer your existing credit card balances to a new 0% APR
credit card.

2.) Continue to pay down your balance as usual. But instead of
paying only the minimum each month, also pay the amount of
interest you would have paid with your other card. This will
reduce your debt even quicker!

3.) Watch your introductory period. When it’s about to expire,
shop around for a new 0% APR credit card and transfer your
balances again.

4.) Continue this cycle until you become debt free!

0% APR Credit Cards vs. Debt Consolidation:

So you’re considering a debt consolidation loan instead of a 0%
APR credit card. Let’s see how much you could save and how much
quicker you could pay off your debt using the method shown
above. Here’s an example:

Assume you have an existing credit card debt of $15,000. You
would like to pay $250 per month until the debt is paid off.
Your debt consolidation loan was approved at 7% (much lower than
your original 12% credit card!).

Beginning Balance $15,000

Total Principal Year 1 $2,014

Total Principal Year 2 $2,160

Total Principal Year 3 $2,316

Total Principal Year 4 $2,483

Total Principal Year 5 $2,662

Total Principal Year 6 $2,855

Total Interest Paid $3,516

Total Amount Paid: $18,516

TOTAL # Payments Made: 70

Now let’s compare paying off this same debt using 0% APR cards

Beginning Balance $15,000

Total Principal Year 1 $3,600

Total Principal Year 2 $3,600

Total Principal Year 3 $3,600

Total Principal Year 4 $3,600

Total Principal Year 5 $ 600

Total Interest Paid $ 0

Total Amount Paid: $15,000

TOTAL # Payments Made: 50

You save $3516 over a six year period! Plus you’ll be done with
your payments 15 months sooner! Imagine being debt free over a
year before you planned!

Words of Advice:

Although using 0% credit cards to pay down your debt is a great
option, try not to switch credit cards too frequently. Doing so
can negatively impact your credit report. Shop around for 0% APR
credit cards that have the longest introductory periods and the
lowest APRs (after the intro period) to buy you a little
breathing room. Also, don’t fall into the trap of spending again
on your old credit cards. Either close them or deactivate them
so that you don’t get yourself into further debt. And don’t
overspend with your new card either (even if it is 0%)! Finally,
make sure you apply the money you saved on interest to your new
payments to help eliminate your debt faster.

To see a complete list of 0% APR credit cards, please visit:

ASAP Credit Card

Post secondary education is very expensive in North America and unless you are fairly wealthy will be a worry for most parents. Obviously, not all kids go onto University or College but if they do and you haven’t planned for it you could find yourself with a large financial burden. This would probably happen just when most families are looking at finally having some financial security

A Registered Education Savings Plan - RESP - is vital for your financial health if you have kids who you feel may want to go into post secondary education. An RESP is government sponsored (Registered with Canada Customs and Revenue Agency) and is allowed to grow tax free. Money paid from the plan at maturity may be taxed as income for the student.

The plans are administered by private companies/persons (Promoter) who will collect contributions and invest them accordingly. Up to $4,000 per beneficiary (student) can be contributed per calendar year, with a lifetime limit of $42,000 without any tax implications. Each student may have more than one plan but the limit is strictly per student.

The most important aspect of the RESP’s is that the Government will add 20% to the first $2,000 per calendar year ($400) up to and including the year of the students 17th birthday. This is called the Canada Education Savings Grant (CESG) and any amounts paid in are not included in the annual limit for tax purposes.

The maximum a student can receive from CESG is $7200 over the lifetime of the plan. Any amount of CESG not claimed each year will accumulate as up to $800 can be paid if not previously claimed. If the RESP is not eventually used for educational purposes any CESG payments will have to be repaid to the government.

To apply, the student must be resident in Canada and have a Social Insurance Number (SIN) which must be provided to the promoter at the plan inception. Also, the individual making the contributions will be required to provide their SIN.

Types of RESP Plans

There are 3 main types of Plan:

Non-Family - There can be only one beneficiary but anyone (grandparents/godparents etc.) can make the contributions whenever they want for however much they want to pay.

Family - There can be one or more beneficiary’s as long as they are blood relatives or adopted by the person/s making the contributions. There are no restrictions on when and how much is paid in (apart from the tax implications of over subscribing).

Group - These plans are normally offered by foundations who set how much is paid in and when. Each age group will have a particular plan and all members will take a share. There are some fairly complicated rules attached and should be thoroughly researched with the plan providers before committing.

RESP Termination

At termination/maturity, there are several options:

1. The intended student does not go into post secondary education. The contributions are returned tax free to the person who made them. The CESG is repaid to the government. Any income generated by the plan will be subject to taxation.

2. The student enrolls in a qualified program at a post secondary educational institution and completes the full program. Initially, $5000 can be paid from the plan, then after 13 weeks there is no limit to the amount paid as long as the student remains in the program. These payments are called Educational Assistance Payments (EAP’s). The student cannot be receiving EI (employment Insurance) or the program must not be part of the students employment (an apprenticeship for example).

3. The proceeds can be transferred to another RESP.

4. The proceeds can be paid to a designated educational institution.

More, detailed information can be found at http://www.onestopimmigration-canada.com/RESP.html

The author immigrated to Canada in 2003 and has constructed a free information website
http://www.onestopimmigration-canada.com about Canadian Immigration and life in Canada based on his family’s experiences.

Having a blemish on your credit report can lead people to
believe that it will be impossible for them to obtain a mortgage
or refinance their current one.

Although having less than perfect credit can be a challenge, all
hope is not lost.

There are lenders out there, and many of them, who specialize in
doing mortgages for people with challenged credit. These lenders
are known as sub prime lenders.

You may not be familiar with sub prime lenders because they are
not the type of institution to set up shop on every street
corner like the banks.

Sub prime lenders deal with all kinds of special and unique
situations. Whatever your situation may be, there is a good
chance that there is a lender out there with a program for you.

For instance, sub prime lenders have programs for people with
poor payment history, people who have had bankruptcies, people
who are in foreclosure and are looking to be bought out, etc.
Over all if your credit history is poor, you will most likely
have to go with a sub prime lender.

My suggestion to you would be to find a broker to shop around
for the best possible program for you.

A broker is not a lender, their job is to guide and educate you
through the loan process. Most brokers have a contact list too
literally hundreds of lenders across the country including sub
prime lenders. Allow for the broker to assess your financial
situation, than fit you into a program that you both can agree
on.

The down side to dealing with a sub prime lender is the interest
rate. You can count on it being high. If you have bad credit,
the lender will see you as a risk, and the penalty you pay for
being considered a risk is in the interest rate.

The point is this, regardless of your credit issues, there most
likely is a lender out there who will deal with you, just make
sure the deal you agree on is in your best interest and not in
the best interest of the broker or the lender.

When deciding to purchase a home or refinance your existing one,
always do your homework. Continue to educate yourself so you
know what to expect going forward, and don’t be afraid to shop
around for the best deal out there. Just because your credit
isn’t the greatest doesn’t mean lenders won’t be competing for
your business because they will.

Your credit can be repaired over time if you pay your bills on
time, so make this a goal and work toward it.

One of the biggest complaints that I hear from homeowners is
that their property taxes are too high. In spite of this, most
homeowners don’t try to get their taxes reduced. This is a
costly mistake. A home’s value at resale can be sigificantly
impacted by high property taxes. Buyers budget for the total
cost of ownership. Lower property taxes can increase the appeal
and re-sale value of a home. A $120.00 difference in monthly
taxes can translate into a $20,000 difference in property value
at today’s interest rates.

In high tax states, the taxes on the property can often exceed
the mortgage payment. Tax relief is often available to veterans,
the elderly and low income homeowners. This relief is statutory
and can be achieved by simply submitting the proper paperwork to
the town or county you live in. These reductions can be
significant depending on the area in which the property is
located. These reductions are usually for owner occupied
property, not rentals.

The subject of this article is reducing an assessment that the
tax assessor has assigned to your property. There are often
errors in the data that the assessor used in arriving at an
assessed valuation for your home. The first thing to do is visit
your local assessors office and request your property card. This
card has the information that the asssessor based his valuation
upon. Many of these cards have outdated or incorrect information.

I have seen instances where the assessor valued the property as
a two story residence, when in fact it was a ranch or one level
home. Since you can’t usually grieve the assessment for past
years, it is in your interest to start as soon as possible.

Comparing what the assessor says about the property with the
actual home is fairly straight forward. Pay particular attention
to such things as the number of bathrooms listed, the square
footage of the house, whether or not some areas are unheated and
the total valuation that they placed on your property. If you
neighbors have recently sold similar houses to yours, use that
information to compare the valuation the assessor has used. If
he has assessed your property at $400,000 and the last 3 similar
houses sold for $300,000, you may have a case for assesment
reduction.

The sales data that you need is readily available from almost
any real estate agent. If you are courteous and explain what you
need and why, most agents will be glad to help you. After all,
you may be a future client of theirs.

If you can show that they have made an easily verifiable
error,you should seek a meeting with the assessor to see if they
will correct the error on their own. Most assessors are very
reasonable and would prefer to deal with you informally than go
through a formal grievance processs.

In a future article, I will go through the strategies to pursue
a successful grievance if the informal meeting with the assessor
is not successful.