Financing Your College Education

Fix Your Mortgage Rate And Save Up That Down Payment Now

Posted by on Dec 28, 2015 in Uncategorized | Comments Off on Fix Your Mortgage Rate And Save Up That Down Payment Now

If you’re trying to get into the property market in Canada, then increase your down-payment savings rate and apply for mortgages with fixed rates. In 2012, the government in Ottawa limited mortgages to 25 years, meaning you’re no longer able to get 30-year mortgages. Given volatility in prices and the possibility of interest-rate increases, having a large down payment ready as well as approvals for fixed-rate financing ensures your mortgage will be much easier to handle. Variable and High-Ratio Are Good Only Now Variable-rate mortgages and high-ratio (down payment under 20 percent) mortgages pose a number of risks. While they can be helpful in some circumstances — for example, someone who is paying more in rent than he or she would pay on a mortgage who can’t save up a down payment because of that high rent — as a whole, they just put off the inevitable and increase your monthly payments. Variable-rate mortgage payments can jump substantially if interest rates go up. If that rise coincides with increases in other living expenses, such as your children reaching school age and needing supplies, you might not be able to pay the extra money, and you’d default. The same goes for the increase coinciding with decreased pay, such as through job loss or pay cuts; you wouldn’t have enough to make the house payment without cutting out other parts of your budget. If you’re already strapped for cash, that’s a bad combination, because it leads to default. Likewise, having a low down payment means you pay more each month, and you pay mortgage insurance. So you get the house with limited means only to find that now you owe quite a bit of money each month. But Fixed and Conventional Pay Off Later If you have a fixed rate, though, your payments aren’t going anywhere. They might not go down if rates go down, but they won’t go up if rates go up, and that is a crucial part of being able to afford your home. Even if your pay goes down, there’s less uncertainty about what your house payment will be. A conventional mortgage, too, means you’re getting a good chunk of the house cost out of the way. Anything you don’t pay up front is subject to interest. Even with fixed rates, that can hurt a little more if you didn’t put down much. Qualify for a conventional mortgage, though — or even put more down — and you are done with that portion of the house cost and have higher equity from the start. If you’ve been thinking about variable rates and high ratios, talk to a professional financing business, such as Kingsway Investment Ltd, to get specific numbers based on house costs in your area. You’ll be able to see how much you could save by using fixed rates and conventional down...

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3 Types Of Equipment Leases

Posted by on Feb 23, 2015 in Uncategorized | 0 comments

Leasing equipment has rapidly become more popular due to a number of advantages the process provides. Small businesses are able to get the equipment they need without breaking their budget or having to worry about where to store it. Companies can get the newest models of all of the different types of equipment without having to pay an arm and a leg. Maintenance costs are transferred to the company that is providing the equipment. There are three main types of equipment leasing situations. Check them out and decide which is best for you. 1. Financial Lease A financial lease is when a company that needs the equipment signs an agreement with the company in charge of leasing. This agreement basically states that the company will keep the equipment for a certain length of time and pay money regularly throughout this period. Ordinarily, the charge for leasing is monthly, although some companies offer deals if you pay for several months at once. If the equipment being leased should break down before the leasing period has expired, then the company that provides equipment will send a replacement at no additional charge. This tends to be the most common type of lease. 2. Operating Lease An operating lease is a lease that is signed by a company that needs to use the equipment for an indeterminate amount of time. There is usually a minimum number of months that the leasing company will have to agree to, but once the company is done using the equipment, they simply send it back. If the company uses the equipment for a very long time, they can choose to put some of the money that have paid on the lease towards actually purchasing the equipment. This makes it easy for companies to test-drive equipment and determine if it fits their needs. 3. Sale and Leaseback Lease This lease is when one company purchases a piece of equipment and sells it to another company. The first company then leases the equipment from the second company. The reason why this lease exists is that it allows a company to get a piece of equipment, but still have funds to use for other activities, even though a lease is being paid. The first company technically owns the equipment the entire time. For more information about the type of lease that is best for you, contact a loans and financing company like Westar Financial...

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