When you start looking for a mortgage loan, you will see a variety or advertised interest rates. These rates are usually only available to people with a decent amount of down payment and outstanding credit scores, among other things. You may wonder just what determines your interest rate in an effort to get it to the lowest possible rate for yourself.

The first factor will be the amount of your loan. While you may be approved for a loan up to 200,000 dollars, that doesn’t mean you have to use the whole thing. You may find a decent house you like for $150,000.00 and this can help lower your rate, as well as a larger down payment. A down payment of 20% or larger is what will get you the lowest possible rate for this area.

The higher your credit rating is the lower your interest rate can be. However, if your current debt is higher than 30% of your monthly income, then it will not matter how high your credit rating is.

Another factor that has a big role in determining your interest rate is the length of your loan term. If you have a longer loan term then you will be considered a higher risk for the lender and therefore will have a higher interest rate. At the same time the longer your loan term, the longer you are paying interest. So if you have a shorter term then you win by getting a lower rate as well as a shorter period of time paying interest which in turn can save you even more money

Posted: April 7th, 2008 under Finance.
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My New Year’s Resolution this year was to get my personal finances under control, and I haven’t given up on it yet.  One of my favorite places to research information is Yahoo Finance at http://finance.yahoo.com.  Today I found out, one in three people become disabled for at least 90 days, and one in ten are permanently disabled before retirement age.  Those are crazy high odds. Surprisingly, I also found out you can get really decent disability income insurance for as little as around 1 to 3 percent of your yearly income. What a great way to gain some financial peace of mind.

Posted: March 22nd, 2008 under Finance.
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Does your employer provide any type of company-paid disability income insurance?  Have you ever even thought about disability income insurance?  According to an article I read at http://finance.yahoo.com, this is one of the most important types of insurance to have.  I found out, my employer’s disability insurance is terribly inadequate.  My family and I would be out of luck if I was disabled more than six months.  I’m now looking at options for purchasing my own disability income insurance.  It’s something everyone should at least consider, and it’s affordable enough to fit into even a tight financial budget.

Posted: March 7th, 2008 under Finance.
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If you just got married, or are starting your first business, Graduated Payment Mortgages (GPMs) might make sense for you. They are ideal for people who are just starting out but have expectations of making more money in the future. GRMs payments start low and then gradually rise at predetermined times. Since they have a lower initial payment, you can qualify for a larger loan amount. Your principle will be paid off at an accelerated pace through the later years of the loan so you should be absolutely sure that your income will be able to cover it as time permits.

Posted: March 7th, 2008 under Finance.
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I was going to spend my tax rebate check on a new HDTV.  Not exactly using the money to my financial advantage, I realized today.  I now have ideas for better options, after reading an article on the topic at Yahoo Finance, http://finance.yahoo.com.  It won’t be as much fun, but I’m going to use most of it to pay down credit card debt, and put the rest away in my emergency fund.  I figured out how much I can save on credit card interest, and it’s more than worth going without the TV for a while longer.

Posted: February 27th, 2008 under Finance.
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I read an interesting article today on Yahoo Finance at http://finance.yahoo.com on smart ways to spend your financial windfall tax rebate check. One idea that I really liked is, use the money to upgrade your job skills.  That way, if you lose your job, you’ll be in a better position to find a new one. If you don’t lose your job, you can always apply for a better position at your company, or look to start a new career when the economy picks back up again.  If you’re wondering what skills to invest in developing, take a look at Help Wanted ads and see what skills employers in your field are looking for today. 

Posted: February 18th, 2008 under Finance.
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I realized yesterday, I’ve got to come up with a plan to figure the cost of mowing our lawn into an already strapped budget. I was looking at http://www.CNNMoney.com today, and I realized my financial woes are no big deal compared to a lot of peoples’. CNNMoney.com is running a special segment on America’s Money this week called Issue 1: America’s Money. It features stories about how people around the country are handling today’s growing financial demands. Check it out – it will make you feel better to know you’re not alone, and you might get some good ideas on making ends meet.

Posted: February 14th, 2008 under Finance.
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Are you wondering how you’re going to afford a vacation this year? The higher the price of fuel and food climbs, the more my vacation budget seems to shrink. I decided to take a financial planning approach to vacationing this year, and thanks to some tips at http://www.CNNMoney.com, I’ve come up with a great solution. I’ll be traveling to Costa Rica in November, slightly off-season. Not only will I be taking advantage of greater buying power, I’ll also be getting slightly lower rates by avoiding the busiest travel season there, which is December to April.

Posted: February 7th, 2008 under Finance.
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This tax rebate is an incentive for people to file taxes, for sure, but if you failed to file for 2006, you should do so now.  I found out in an article at http://www.kiplinger.com, you have three years to claim a refund if you’re owed one – and you won’t be penalized for filing late, either.  Also, if you find out you missed a significant deduction, you can file an amended return within three years to claim your refund, too.  That’s good financial news for a lot of people, if they take advantage of the opportunity it presents

Posted: January 24th, 2008 under Finance.
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I love to travel, but like everyone else, I’m on a tighter than usual budget this year. That means planning a vacation from a financial perspective. Europe is out due to the low value of the dollar. I can’t even justify a domestic vacation, prices on fuel and food are so high. It looks like I’ll be heading to Mexico City. According to Money magazine online, the peso-dollar exchange is still steady, so Mexico is still a bargain. You can find out more about vacation destinations where the dollar still packs a punch at http://www.CNNMoney.com

Posted: January 22nd, 2008 under Finance.
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