Finance And Refinance .com

The term “mortgage” appeared at first in the Old French as “dead pledge”, because in the old history when somebody didn’t pay the dues the pledge ended in death. Either they fight with swords or the person who didn’t pay the tribute was killed. Mortgage is a well known solution for those who need rapidly some cash in order to pay often a real estate with the condition that it would be paid later. It is not a kind of debt; it represents the security in money for the borrower. You can think about the mortgage like an interest between lender and borrower. For the lender it means security.

There are some terms regarding to mortgage . Mortgagee is usually the lender. Lender gives the money, and the borrower due to the mortgage persuades the lender. The debtor or the mortgagor has to get to know the conditions of the mortgage. Mostly mortgages are related to real estates , but naturally not even for lending purchases it is possible to take mortgages.

The annual percentage rate (APR) is the measurement which is to count the cost of the mortgagor.

In Spain, Ireland, and Australia and also in the United Kingdom have appeared some markets in order to provide services for mortgagors. People need homes, but they don’t have enough cash.

Before you are going to have a mortgage loan, you have to talk with your bank specialist or manager, and agree in a maximum term. After this term there is an amortizing loan which has to be paid. It has another type negative amortization, but not all the mortgage loans do have this amortization.

It is very difficult to decide to borrow, mainly if you are forced to mortgage. Getting to know the possibilities is just the first step. On the Internet there are free mortgage calculators which help the borrower in researching and planning. It is a very helpful method also to learn about the existing mortgage. It is easy to follow the payments, the rates, the amortization schedule and the pay-off dates.

Borrowing is a very complicated decision; due to the mortgage payment calculator it may be relaxing. It is also helpful for those with home mortgage, who want to count the monthly, yearly paid dues.

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Bond is a value showing the status of a creditor to its holder by the issuer, the issuer is forcing obligation to pay the holder a fixed annual amount, called the coupon obligation, for the entire period of validity.

Bond is a document issued by a company that needs financing, under which it obtained a loan. The company issuing the bond is called a debtor, and that a lender has is called (it provides a loan). Bonds are financial assets with fixed interest. On loan repayment, the company undertakes to pay, also, interest, fixed obligation at issue.

Bond contains:

* Name of the issuer;
* Coupon or coupon rate (expressed as the percentage share of the nominal value to be paid at certain obligation holder);
* Maturity - the time of expiry of the loan obligation and withdrawal (the date on which it will be bought back by the issuer);
* Nominal value - the amount shown on the title, which gives the holder a form of credit issuer and that will collect at maturity;
* Signature of the person authorized by the issuer;
* Special prints, to prevent counterfeiting (security features).

Bond may be registered if it is entered on behalf of owner, or “bearer”. The holder of a bond is called obligatar. He is a credit to the issuer and the right to receive income called interest, but has no rights and responsibilities on the business issuer (debtor).

Therefore, the bonds are debt securities with certain income and usually fixed. The main issuers of bonds are general government (central and local), and order is being issued to cover the budget deficit, the financing of investment is important for the community.

Most bonds pay interest only until maturity (quarterly or half-yearly depending on the specifications of the issue prospectus) with the last time interest in full and return the amount borrowed. Some bonds pay but at intervals (specified in the prospectus of issue) and the main parties. In general, an investor has lost or gained due to differences in the coupon (interest rate paid by the issuer) and the amount of interest charged on the money market at that time, between that interest and the market price of the obligation exists an inverse relationship.

Although theoretically the flow of cash that it receives the holder of bonds is not influenced by the issuer’s revenues, it is obvious that the limit if they are too low, investors may return the money or delay payments may cease. Therefore the issue prospectus should be read through the guarantees provided issuer (which may vary from one part of the assets to ensure the simple name of the issuer of the asset).

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The entire world is in debt. Every individual is in debt. Every company works on debt. The financial teachings say that you must use other people’s money to evolve.

Cash only strategy is one that can save you right now. I read nowadays that with this crisis, the old school capitalism is dead, and it will be followed by an era of savings. I personally think that the image of the crisis is too fresh in our minds, so people will be cautious with their expenses only on short term.

On middle term they will be lured to enter again in the marketing/buying spiral.

Cash only strategy helps you make a safe heaven around you and your finance. The credit card is a bad invention, which let simple, stupid people (which count for 95% of Earth population) to enslave themselves, buying on expense of their future life.

Actually, is a comparison that you can make with selling your soul to the evil one :). You get instant reword on the expense of future life :)

Using cash only can help you detoxify of this un-useful habit. Try for a week to pay everywhere only with cash. Sensing the hardcore cash, will make you more responsible, will make you more aware of the limits of your financial strength.

Try hiding your credit cards somewhere in the house and fighting the instinct to use them.

Also, using only cash, you will make a lot of savings. You will not pay interest rates and commissions, and you will spend less. Because it will be more difficult for you to VISIBLY spend, versus credit card spending, which are thin air…

USE CASH ONLY for a week. And then use cash as much as possible. And after that, use a debit card, not a credit card, because debit card will not let you spend more then your limit :)

CASH ONLY strategy is good to survive during a recession, like this one, and make you a happy life.

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Dear financial slave!

Refuse to have several debts! Now with one debt consolidation loan all your loans are consolidated into one. At least be a smart financial slave, if you are a slave. Read the rest of this entry »

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If you are facing problems on several debts, do not worry. In this fast competitive world, you have to deal with almost everything, no matter how negative the situation is. And to help you remove more debt, personal debt management has come to be.

As a borrower, we seek assistance on debt when you have multiple debts, and when you find a way to manage this growing problem. With personal debt management, you can really change the story. Because once you apply for personal debt management program, you need neither to respond to several creditors with respect to your multiple debts. Instead you the flexibility to convert the debt into one loan. This is indeed a great way to eliminate your debts and to give you a quiet life away from annoying phone calls and reminders from creditors.

With personal debt management, not only is a chance to merge your debts, but also get the opportunity to pay off lower interest rate. This makes the refund process easy and affordable.

You can manage your debt both secured and unsecured form. For secured debt consolidation, you need to your property any place of security as a loaned amount. Whereas, unsecured debt consolidation does not require property to be placed as security. Just accessing your employment and financial creditor will offer unsecured loan. Personal debt management advice can be accessed from the duty of experts who will guide you through the process of consolidating your debt and will offer suggestions on loans and lenders. You can access these through the online lenders. Method of consolidating your debt through online is fast, secure and reliable. Get fast feedback from creditors and debt experts. In addition all your information is kept secret.

With personal debt management, you need to not respond more on your creditors more debt. Instead, you get the flexibility to convert the debt into one loan. With personal debt management, not only a chance to merge your debts, but also get the opportunity to pay off lower interest rate.

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Today I am doing to say something about investment loans, from a different perspective.

In general, everybody should take a loan only it will benefit future flows of income. And the ROI of the loan should be significantly higher then it’s cost.

The idea of investment is to put money to work for you, not your time. So the investment loans should do the trick for you.

There is pity that the vast majority of people they only take loans to spend not to invest. And after that are wondering why are spending their entire life being slaves, paying for interest. This is most unfortunately.

The investment loans are designed (at least in theory) to increase the wealth of the individual/company. They should be involved in activities that have higher ROI then the loan itself. This is the rule of thumb.

And usualy, is much smarter to user other people’s money to evolve then your own. Because your money are the most expensive :)

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Nowadays, savings account interest is dropping like a rock. The FED is trying to lower the interest, in order for companies to take loans, so the economy will start rolling again. Of course, together with the interest rate for loans is dropping the savings account interest. Here you have some of the best interest from the market:

- FNBO Direct Online Savings Account decreased to 2.15%

- ING Direct Orange Savings Account decreased to 1.65%

- E*TRADE Bank Max-Rate Savings Account decreased to 1.95%

- HSBC Direct Online Savings Account decreased to 1.85%

The funny part is that in Central - Eastern Europe, the savings account interest are extremly high, on very strong currencies. For example, in Romania, the figures are very high and big US banks are keeping large deposits here:

- Volksbank Romania - 14,5% in RON and 6% at EUR

- BRD Societe Generale - 13,75% RON and 6,75% at EUR

Also, if you invest in state bonds, you will get a guaranteed 20% interest rate, which is also huge. The need for cash in these countries is so big, that are keeping these enormous interest rates for saving accounts.

My suggestion is:

1. if you really want to keep the money somewhere, try to use the overseas accounts that are guaranteed. In Romanian for example the state guarantees 50,000 eur each saving account. Other countries have bigger limits.

2. Try to put the money to work. Invest in future flows of capital. You will never be rich if you keep you money in the bank. Actually, you could loose money due depreciation. Did you know that since 1920 until today US Dollar lost 95% of it’s value?

Today’s savings account interest is not worth to keep the money in the bank, unless you really don’t have anything else better to do with them.

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Efficiency is the buzzword nowadays. Every company want to improve efficiency (versus improving effectiveness, like they wanted several months ago).

The thing is that people have various levels of efficiency. Some are earning tons of money because of this. Some are just crawling. It’s fantastic the difference between 2 mindsets, for example, how big the difference is. An optimistic, a positive, proactive, problem solving and FOCUSED mindset can make miracles. While a depressed, negativism mindset could bring to the owner mostly nothing.

Efficiency is also a problem of mindsets. You will not earn 10% or 20% more. You will earn 1000% more. Just by thinking big and proactive. Sounds nice, isn’t it?

So, turbo your efficiency. Start being focused. And learn from here the secret of success. :)

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The idea is to own stocks from people lives.This is the way to make really big money :)

Let’s say I am earning 1,000 usd/year and I will live for 60 productive years.

If I buy an insurance every year for 50 usd/year, that means that 5% from my life I am working for AIG masters.

Also I am working for Nokia (every 2 years another phone), Audi (my ever changing car, with high devaluation rate), Citibank (interests, commissions, etc), Wall-Mart (food, water, …), Pfizer (drugs), Coca-Cola, local mafia, US government (through taxes) etc…. all of them own a piece of me. I work full percentages of my life for various masters. I am slave on their backyard. Because I choose to buy various stuff from them, in order to get some sort of added value.

So, the bet in how to make big money is to own from as many people a larger stake as possible. The US state is the biggest master. You HAVE to pay that master, otherwise IRS comes after you and you go to jail.

So, if you want to have a business, consider how can you make as many slaves as possible. There you have the BIG money :)

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Is Global Finance a zero sum game?

When I was a small kid, I learned in physics that nothing is wasted, everything is transforming. And everything is a zero sum game.

During the past decades, the economic theory somehow made us forget this. We see that from decade to another, global finance put us in an every upscale economy. We see more money, more developments, more credits. It seems that we are developing and everybody is winning. Or that the sum of winnings is far bigger then the amounts lost.

But I think that everything pays up eventually. There is no such thing as a free lunch.

The global finance now is hardly hit, because of the unsustainability of the system. Together with the finance is also the world economy.

And you know which is the bad news? That this situation will repeat in the future. Because humans are greedy and want more and more possessions. Global finance system helps in this respect, accumulating more and more money and debt notes from every individuals and nations.

Globalization is a problem. Global Finance, together with greed amplifies this problem to unprecedented scale. We will live some interesting times…

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