Debit Cards.

Debit cards are often used in many European countries, but are relatively unheard of elsewhere. Basically, they’re just like credit cards and are accepted everywhere credit cards are accepted – the only difference is that they take any money you spend directly from your bank account, instead of you getting a bill at the end of the month. You should be aware, though, that you aren’t as well-protected from fraud with a debit card as you would be with a credit card.

Pre-Paid Credit Cards.

These are cards that work just like credit cards, except that you can’t have a negative balance – you have to put money on the card before you can spend it. That means that you ‘top-up’ the card, like you would a mobile phone. This is good if you want to know how much you’re spending, not to mention that you can even give the cards to children. They’re also safer than debit cards, since someone who stole the card could only spend whatever money was on it at the time.

Bank Overdrafts.

A good bank overdraft, used together with a credit card, can be a far better way of borrowing money than using a credit card. Your overdraft limit is set by the bank according to how much you gets paid into your account each month, and you don’t need to pay it off until you want to.

Basically, it just gives your account the facility to go into minus numbers, if you want it to. Many banks charge relatively high interest rates for overdrafts, but rarely as high as a credit card – and they will give much better rates for good customers.

Real Loans.

When you’re buying one big thing at a fixed price (like a car), or you’re going to spend all the money on one type of thing (home improvements, for example), it’s worth budgeting it all out and going to a bank or another loan company. They’ll be able to lend you the money at a much better rate than a credit card would, simply because they know why you’re taking the loan and can set regular monthly payments for you to repay it.

Credit Unions.

Credit unions are like banks, only more local. They are co-operative, owned by their members and run by the community, and are a great place to borrow money. This is because there are limits in law on how much interest credit unions can charge, and they don’t need to make a profit for owners or shareholders, because they don’t have any. It’s well worth checking if there’s one in your area.

Affinity card. This is a credit card that gives a certain amount to a charity of your choice, depending on how much you spend. It is generally best to avoid any charity that wants you to sign up for such a card – don’t let guilt lead you to a high interest rate.

APR. Annual Percentage Rate. This is your overall interest rate, calculated yearly, and given as a percentage of your balance.

ATM. Automated Teller Machine. A cash machine. It will give you money when you put your credit card in, but will probably charge an extra fee.

Balance transfer. This is when you transfer your debt (‘balance’) from one credit card to another. The usual reason for this is to try and keep as much debt as possible on a lower-interest card.

Credit limit. Your credit limit is the maximum amount you can spend or withdraw from your card. Going over your credit limit will result in your card no longer being accepted, and you being charged an over-limit fee.

Fixed rate. A fixed rate card is one where you are given a rate when you sign up for the card and that rate, at least in theory, stays the same for the whole time you have the card. In practice, though, interest rates can be changed for almost any reason.

Grace period. Your grace period is the amount of time between when you spend money and when you start paying interest on it. Good cards can have a grace period of up to two months – bad ones might not have one at all.

Minimum payment. A minimum payment is the absolute lowest amount you can pay back to the credit card company each month – you should pay more, but you don’t have to. Minimum payments are usually around 2% of your balance.

Sub-prime. This is a phrase used in the industry to describe customers who are a bad credit risk, but are seen as worth lending to anyway. If you are identified as sub-prime, you’ll start getting offers for loans secured on your property – they know that if you can’t pay, they’ll get their money anyway.

Teaser rate. A ‘special offer’ low rate, usually written in enormous letters. You will see many offers with “LOW 4.9% APR” in inch-high letters, followed by “for first six months, 21.9% thereafter” in microscopic ones. Teaser offers can sometimes be worth taking, but not if they tie you in for longer than the period of the offer.

Variable rate. This is an interest rate that is worked out by adding a certain amount to the current base rate. Taking this option will allow your credit card to be affected by changes in national interest rates – a good idea if you think they might go down, and a bad one if they’re on the way up.

Discount fees are essentially fees you pay to your financial lender at the time of closing to secure a lower interest rate on your home loan. Each ‘discount point’ costs the home buyer one percent of the loan amount and generally lowers the interest rate on the buyer’s 30 year loan by 0.125 percent. So if a buyer with a home financing loan of $200,000 with an eight percent interest rate pays an extra $2,000 at the time of closing (two discount points worth), he or she can lower his or her interest rate to 7.75 percent. The discount points system lowers the interest rate because the lender is able to collect its money earlier rather than spread out over the course of the loan period.

Buying discount points to lower your loan interest rate may seem like a good idea, and it is for many home buyers, but not all. Depending on the specifics of your loan and your financial situation, buying discount points to lower your interest may save you money or it may not. In some cases, the savings may be so inconsequential that buying the discount points may not be worth the extra financial burden or cash flow stress that it causes.

So how do you know whether or not buying discount points is a worthwhile option for you and your financial situation? The length of time you intend to keep the loan is a key factor to finding the answer to that question. Once you have that information, in an ideal world, there would be no unexpected life expenses and the answer would be revealed with a few simple calculations. Unfortunately, life often dishes out the unexpected and sometimes that costs a lot of money, so it’s impossible to have a fool-proof plan. The good news is the calculations are still fairly straight-forward, and barring any major catastrophes, they can give you a good idea about whether or not it makes sense for you to take advantage of discount points to reduce your loan interest rate.

Begin by using an online mortgage calculator to determine what your monthly payment would be at the interest rate if you do not purchase discount points from your lender. Then do the same calculation to find out how much your month payment would be if you do decide to purchase discount points. Subtract the first amount from the second to figure out the difference you could save each month and then divide the amount it would cost to buy discount points at closing by the monthly amount saved. The resulting figure represents the number of additional months you would have to keep the loan to break even or recover the cost incurred by using points. If you do not intend to stay in the house long enough to recover the cost, you may not want to buy the discount points.

By using a amortization schedule (also available online or from your financial institution) to compare the financial impact of both loan scenarios, you may discover that the reduced-rate loan has a nominally lower principal balance at the end of the discount point cost recoup period, which may also play into your decision.

Finally, you may want to consider the tax advantages presented by purchasing discount points from your lender. The cost of real estate discount points is deductible in the year in which it is paid. Of particular note, buyers are able to deduct the cost of discount points even if the seller actually pays for them.

While there are pros and cons to buying discount points from your home financing lender, your final decision must be based on your specific needs and financial situation. Speak to your financial advisor or lending institution to decide on the best course of action to ensure you can pay off your loan in the best possible way.

You may not realize it, but there is great variety available to home buyers shopping around for a suitable mortgage. Different banks, brokers and other lending institutions all offer their own mix of short-term and long-term mortgages, as well as both fixed rate and adjustable rate mortgages.

So how do you know which combination is the best for you? That depends on your circumstances.

Traditional fixed rate mortgages allow you the security and stability of knowing that your mortgage interest rate will not fluctuate with market conditions. This means that if interest rates spike, you will be protected. Conversely, if interest rates drop, you will not be able to take advantage of the potential savings without transferring your mortgage to another institution or making other possibly complicated arrangements.

Adjustable rate mortgages (also known as variable rate mortgages), are different than fixed mortgages in that the interest rate you pay on the outstanding principal of your loan fluctuates according to changes in the posted index rate. There is a certain amount of risk involved with an adjustable rate mortgage in that you may end up paying more money in the long run if interest rates rise and stay high. You also have the potential to take advantage of savings if interest rates fall. An additional bonus to adjustable rate mortgage is the lower initial interest rate. You may be risking higher or unstable payments, but you are rewarded with a lower interest rate when your loan is at its fullest point. Unless interest rates rise dramatically, this advantage is likely to save you more money than if you had chosen a fixed rate mortgage.

There are advantages and disadvantage to securing an adjustable rate mortgage loan. However, you may find an adjustable rate mortgage worthwhile if you intend to pay off a large portion of your outstanding balance early into your loan period. By doing so, you reduce the bulk of your loan while paying the initially lower interest rate. An adjustable rate mortgage may also be the best choice for you if you anticipate greater future income or if you intend to pay off the entire mortgage loan quickly – again due to the lower initial interest rate. Even if rates were to increase early into your mortgage period, the fluctuation would unlikely be so great that it negated the difference in interest rates between a fixed rate plan and a variable rate plan.

You can reduce the financial risks associated with an adjustable rate mortgage by asking your lender about interest rate ceilings or caps that protect mortgage holders from sharp increases in the amount of money they must pay each month (or whatever their payment period is: monthly, weekly, bi-weekly, etc.). The overall ‘ceiling’ restriction is legislated in almost all cases, and it limits the total possible interest rate increases over the period you hold the loan. Periodic caps help control interest rate hikes between adjustment periods.

Your lender may also be willing to consider payment caps, which stabilize your monthly or periodic payments so any interest rate fluctuations are worked into your payment by way of adjusting the ratio of principal to interest each payment covers. This is a great option if you have limited income flexibility, but could result in a negative amortization period over the long haul. This happens when the balance of your mortgage is actually growing rather than shrinking because your regular payments are not large enough to pay all the interest plus a portion of your outstanding principal.

A final option to consider is arranging to have the ability to convert your adjustable rate mortgage into a fixed rate mortgage at a designated time. You may pay a fee for converting your mortgage, but if you find yourself in a situation where interest rates are rising rapidly, it may be worthwhile to stabilize your payments and balance by switching to a fixed rate plan.

Speak to your financial advisor to find a mortgage plan that fits your budget and your needs.

You probably live in the house you are trying to sell, and therefore you are familiar with its appearance – perhaps too familiar. Chances are, you don’t notice small cracks or peeling paint the same way someone seeing your home for the first time would. Starting from a position on the street, take a close look at your home. What stands out? What looks wrong? Does the tree in front need pruning? Perhaps a shutter needs to be repainted? Maybe the porch light fixture is broken. These are generally small tasks that don’t take a lot of time or money to repair, but that make – or detract—from the look of your home. It may help to take a photograph of your home from the street to see if that gives you a new perspective.

Here are some areas to consider when sprucing up your home for increased curb appeal and sale: • You will have more potential buyers in people can find your house. Your house number should be displayed in a prominent location and illuminated so that it is easy to read. This is extremely important in the evening and during the winter when daylight is limited. If your house is set back a fair distance from the street, consider installing your number on a gate, pillar or fence post that is easy to see. • The old adage that cleanliness is next to godliness applies to your house, too, particularly when you want to sell. The exterior, including eavestroughs, should be neat, clean and in good repair. Downspouts should have extensions to take water away from the foundation to avoid pooling. Any settling of backfill around a house should be corrected to ensure that the grade at the foundation is higher than surrounding areas.

• A lush green lawn enhances your home. It should be freshly cut, weeded, and edged. Flower beds should be weeded and cultivated, hedges trimmed, and garden debris removed. If your lawn isn’t in good shape, time will be required to improve it, and professional help may be desirable. Any areas that require new grass should be sodded rather then re-seeded to ensure a finished appearance. If you are selling during the fall or winter, when your yard may not look its best, make sure that all dead material is removed from gardens and leaves are raked off the lawn. Store shovels and other equipment in a shed or other out-of-sight location. • Doors should be unmarred, clean, and repainted with care if necessary. The doorbell and door hardware should be in good repair. Potential purchasers who see a Realtor wrestling with a reluctant door lock may wonder what else is wrong with the house. • When a Realtor is opening the door of your home, a potential purchaser has plenty of time to look at the porch and entry. Accordingly, they should be clean and tidy. Do not allow flyers to accumulate, and if there is a doormat, it should be clean and in good condition. Decoration such as a tasteful wreath is fine, but don’t overwhelm your entry and door with frilly adornments. • Your garage should be a storage area for automobiles, not for miscellaneous articles. To make the best impression, it should be clean and tidy, with garden tools hung neatly off to one side or in a storage cabinet. If they can’t be stored elsewhere, bicycles, the snow blower, and the lawn mower should be placed so as not to impede movement around the cars. Garbage containers should be empty and clean. Illumination should be bright, ideally with a 150 watt bulb, at least during the listing period. • The driveway should be degreased and sealed. • Walkways and patios should be clean and free of cracks, with litter removed (if your walkway or patio has unwanted grass or weeds they can be eliminated easily and in an environmentally friendly way with boiling water or a propane torch). In winter, the driveway, walks, and porch stoop should be cleared of snow and salted if necessary. Inside the front door should be an overshoe tray, and a carpeted area where overshoes can be removed. Your home is an investment, and by taking a little time to put it in top form, you will get a higher return on that investment when you decide to sell.

When starting your search for a listing agent to sell your home there are a few important considerations and questions that you will need to investigate. First, consider that you need a realtor that realizes that every seller has a unique situation not only financially, but in many other ways too, such as deadlines for selling, or even times for showing your house to buyers. You will want to find a listing agent that not only you can work with, but also one that has your best interests at heart, and not just their commission. It’s a working relationship, but it’s one in which they are employed by you to sell your home hassle free and for the best price.

Begin your home listing agent search by investigating all of the different realtors in your area. A handy telephone book with agents listing and asking friends and neighbors about any realtors that they may have had experience with are two places to begin. Remember though that one persons experience doesn’t mean that you will have the same exact negative or positive one. After writing down a list of agents take some time to dig a little further by grabbing a local paper with home listings, and look for particulars. Note how the agents list their available homes. Check to see if you’re impressed by the quality of not only pictures, but how well the information is presented about the homes. Be wary of any listing that has grammatical errors, or leaves out vital information such as correct contact numbers. Also, look for the realtor’s websites, and take note of how well their information is displayed, but also see if the site is easy to navigate to find the necessary information about the homes listed. There can be nothing worse than a listing that is extremely hard to find. Potential buyers will click away if your homes’ listing is buried beneath tons of frustrating non essential information. Note too the different forms or types of advertising that each realtor has, such as radio, print, magazine, and internet. The broader informational services your realtor uses the better chances your home will sell according to your schedule and price.

After researching your potential realtors, and deciding on which ones you might like to work with, make an appointment to delve further into their services. Again, write down pointed questions, and their answers to them. Key questions that most home sellers like to know will have a big affect on their wallets, and if their home sells or not. Make sure answers are effectually given to your satisfaction. Here are 5 important questions that you will need to ask.

• What are the listing agent’s commissions, and if your house is sold by another agent what are the fees for both? • What is the agents experience, and how much property have they sold in the last year? • Will your house be placed on an MLS (Multiple Listing Service), or multiple MLS systems? • What is the contractual agreement for the length of time you must list with the realtor to sell your home? • What is the listing agent’s policy for open houses, and will you receive timely feed back to correct problems?

Finally, when making a decision on an agent to represent you and your home remember to be thorough. If there are any questions that you feel during your interview with a listing agent that suddenly occur to you as important don’t be hesitant to ask. Any confident and qualified agent will be more than happy to openly discuss in a non hurried manner any questions that you might have. Selling your home is an intensely personal one with serious financial matters at stake. You deserve the detailed and caring attention of a professional. Working with any realtor should be as stress free as possible, and your home should be presented in its best light, so buyers will come knocking at your door.

1. Decorative moldings can be used throughout the home for interior to exterior, to trim doors, floors, walls, windows, fire places and ceilings. These moldings can be found at practically all home improvement stores and are fairly easy to install to enhance the look of any room.

2. Kitchens tend to be the greatest investment that many potential buyers look at the most. Replacing cabinets and counter tops, can be done gradually at your own discretion or you may choose a more creative way to improve the old ones by painting the cabinets and replacing the knobs or handles.

3. Vinyl windows are a great way to increase the value of any house. These windows function better than the old wooden windows by opening for easy cleaning and they conserve more energy in the months when heat or central air will be used the most. They do not require painting and they can really make a house look beautiful.

4. Adding a new roof can make a very strong impression. The roof is the first thing people see and this can play a strong role in how much your house will sell for. A new sturdy roof provides protection from leaks that make ugly stains on the ceilings in your house that can lead to more damage.

5. Installing vinyl siding, if you don’t already have it, this can add up to $10,000 to the value of your house. If you have fairly decent vinyl siding already, you can hire a power washing company to clean the siding and give your house a fresh new look.

6. Painting the interior or exterior of a house can transform a house completely with a few coats of paint. You can be as colorful and creative as you like and you can take your time doing so, one room at a time.

7. Flooring absolutely makes the difference in any room. Whether you use linoleum, tiles, wood or carpet, a new floor can make all the difference.

8. Adding new appliances such as a refrigerator, stove, dishwasher, washer and dryer can greatly improve the value of your home. Along with adding a new water heater, furnace and central air unit.

9. Exterior landscaping can enhance a homes value by keeping a well maintained yard to adding strategically placed flowers and shrubs. You can also plant an attractive garden or install a small fish pond. Deciding to install or replace a fence along your property line will also be a great attraction to potential buyers, especially the ones who have children.

10. Adding a new deck is a great asset to the exterior look of your home. These can be made from a variety of wood and sealed to preserve the natural appearance. A new deck will provide the outside recreational area to grill out, while relaxing in a comfortable patio set and enjoying the great outdoors and fresh air.

Adding value to your home can be as simple and as affordable as you want it to be. Most improvements can be accomplished a little at a time, all depending on your time and budget. Smaller improvements can be made by simply adding potted plants along the stairs up to your freshly painted front door or by adding a small table or work of art in your foyer.

A visit to the home improvement store or looking through magazines can spark creativity when remodeling your home. Even if you have no idea where to start, one spark can lead to another and another, until before you know it, you have created a beautiful home that you may never want to leave.

The United States mortgage lending institutions will not loan money to individuals for the purposes of buying a home on foreign soil. Individuals must obtain a loan through a mortgage lending institution in the country they wish to buy in.

American home owners have the advantage of the U.S. tax write off. This is when the Internal Revenue Service will make deductions on the mortgage interest of the primary home and the second home for up to one million dollars, no matter where in the world the second home is located. As long as all requirements are met for the primary and second residences, this is true.

Gathering all the necessary paperwork and organizing it in a way that the Internal Revenue Service will find acceptable may take some time to do. Especially if the paperwork must be translated into English. Mortgage interest paid on the property, along with all money involved, will have to be converted to American funds. This entire process will come along more smoothly if the individual employs a tax preparer to help convert these transactions.

The value of the American dollar can be a bonus when buying a home on foreign soil. The buyer should expect some headaches with the amount of paperwork involved though. Some countries have laws that regulate what types of properties and locations can be bought by non-citizens. For example: In Mexico, non-citizens are not allowed to buy beach front properties.

Usually, buyers can overcome many problems once they have found the property of their dreams with plenty of patience and persistence and the right mortgage lending institution. Buyers must make sure to find a real estate agent and mortgage lender that are familiar with the rules about non-citizens buying property in their country.

Buying properties in Canada and Mexico is a fairly easy process compared to buying properties in other foreign countries. Buying properties in other parts of the world may prove more challenging and would be best if the buyer checked in with the United States Embassy in the country where they would like to buy properties.

Mortgage requirements are pretty much the same in foreign countries as it is in the United States. First the buyer will need an appraisal on the property to prove that it is worth the asking price. Then the buyer will have to prove their credit worthiness to the lending institution by providing income tax statements, references and proof of employment. The buyer may have to make an extra effort to prove that they will be able to make the required monthly payments.

There may also be extra costs involved in obtaining a credit report that must be sent internationally and if the credit report must be translated. Interest rates on foreign property can vary throughout the world. So regardless of the value of the American dollar, don’t expect to save a lot on interest rates.

Down payments on property in Canada can be as high as 25% and the entire transaction can be done in English, in exception of Quebec, where law requires the transaction to be done in French. Mexico often requires a down payment as high as 60% for a 15 year mortgage. All Mexican transactions must be done in Spanish. Many lending institutions in Mexico deal with Americans on a regular basis, mostly in Guadalajara, where more Americans have retired to or maintain a summer home.

Buyers interested in buying a home outside the United States to retire to may have to pay both U.S. and foreign residence taxes. Most often the Internal Revenue Service will allow the buyers to deduct any foreign taxes paid from what is owed in the United States. All tax matters regarding foreign properties are best left to the experienced tax preparer or personal financial advisor before making any decisions to buy property outside of the U.S.

Depending on what state you live in realtors may be committed to act only as the seller or buyer agent. Many times however a realtor may take on a dual role of representing both the seller and buyer, or known as a dual agent. In other words they have a duty to sell the home for the best possible price for the seller, and at the same time are committed to get the best asking price for a buyer. This can be a little nerve racking for many people, but the best defense is being in the know about the legal and moral responsibilities associated with a realtor’s dual agency representation, and how you can feel confident about working with them.

The legalities of the fact for realtors are that in most states they are required to share the knowledge of which party they work for. Most of the time realtors work for the individuals that are selling a home. If you are unclear make sure to ask, so to ease any nervous jitters on your part. Always assume that any realtor is working for a firm that represents both a seller and a buyer, and if you are a buyer, make sure to hold close any information that may affect any deals that are offered for your purchase of a house. Buyer’s agents have a loyalty to the buyer only. This is verified by a signing of a contractual agreement between both the agent and the buyer. The buyer should be aware that agents are held to a legal and moral obligation to not disclose any personal facts not only to the home seller, but to the realtor’s agent. Material disclosure is permissible though about the property, such as any known pest infestations, or problems with the structure itself. A dual agency for a realtor is usually assumed for them if they represent a buyer; make sure to check into the realtor’s status for your own peace of mind. However, contract protection is afforded for anyone that is interested in purchasing a property through an agent that represents a seller’s interest by signing a contract to represent both.

If you are in the market to buy a home you need to expect a reasonable amount of service from any real estate agent that represents you. The goal should be to fully represent your best interests. You need to be informed clearly from your agent if they will require you to sign an exclusive clause contract. This legally binding contract will require you to work with that agent only. Always search for an agent that will allow you to have other realtors working on your behalf. All buyers agents should work diligently to help you sell your home by providing comparisons studies of the in your area, and to handle any inspections, or working with a lender and the loan application process. He or she should be more than willing to consider and respect your wishes when planning an open house for either other realtors or the general public. Agents should always be courteous about general appointment times to meet with you, and should always leave a cell phone in case of unexpected issues surrounding the sale of your home. Your buyer’s agent should clearly explain all aspects of the contract to you. Issues such as contract compensation and their exact fees for selling your home, along with things such as how long you must list your home with them should be covered in a written contract.

Over all the experience of either buying or selling a home should be one that is pleasant for both the seller and buyer. Selling and buying is a serious decision that can affect your financial and emotional well being for years to come – consequences of how informed you are will be long lasting, many years after you have walked away from the bargaining table.

Your home loan approval is contingent upon the results of the real estate appraisal. It is as simple as no appraisal…no loan. Since very few people have the ability to pay for a house with cash, the appraisal is going to be necessary. A loan is never going to go through without an appraisal. The purpose of the appraisal is to establish the home’s market value. The sales price will be based on the market value.

The main goal of the appraiser is to protect the lender. Lenders don’t want to be stuck with property that is not worth its price tag, so the appraisal must be completed before the lender will approve the loan. The information contained in appraisal is invaluable to the lender. The lender will study the details of the appraisal before reaching a final decision. It makes sense. If they are going to be funding the transaction, they should be aware of the property’s value.

The lender will often dictate the choice of appraiser. It might have one in house or through a contract with an independent appraiser. If you go with your own choice for appraiser, they may be subject to final approval from the lender.

Residential properties are normally appraised using either the sales comparison approach or the cost approach. When using the sales comparison approach, an appraiser compares the property to similar properties that have sold in the area and bases the market value on the comparables or comps. The cost approach is based on the costs to build, which means it is more appropriate for new properties.

The actual appraisal reports are very detailed. They contain information about the subject property along with comparisons of a few similar properties. There is an evaluation of the overall house market within the area. The appraiser will then list any issues that he or she feels might diminish the property’s value. The next component is a list of any serious problems like bad roofs or weak foundations. The appraiser then gives an estimate of the sales time for the house. Finally, the report will indicate the type of property.

It is important to note that the real estate appraisal is not the same thing as an inspection. The appraiser might make note of any problems they see, but they are not responsible for declaring if your home is in good condition or not. They are only responsible for assessing the property and determining the market value for the lender. A home inspection is a different process altogether.

Real estate appraisals only include the home, the land, and any improvements to the land. It does not cover any personal property that might be sold with the house. The buyers should purchase those items separately.

Everyone fears the possibility of a low appraisal. It happens all of the time, usually during closing. There are some things you can do to remedy this common but stressful situation. The buyer can make a larger down payment. If this is not feasible, the seller and buyer can negotiate the price some more. Additionally, the appraisal can always be disputed.

What all goes into an appraisal? Appraisers are looking at the condition and size of the house, its proximity to good schools, and the size of the lot. Appraisers do not look at dirty dishes or overflowing laundry baskets. They do care about chipped paint, broken windows, and appliances that don’t work.

Appraisals are not being conducted by just anyone off the street. Real estate appraisers are trained professionals licensed by the state in which they work. They are qualified for the work they do by completing state certification requirements like exams and continuing education courses. This line of work demands strong critical thinking skills and the ability to interact with different groups of people.