first

Apache is functioning normally

As any entrepreneur can relate, starting a small business is stressful.

There’s so many different things that go into it from securing a loan, getting financing, hiring staff.

Running a small business can be very cumbersome and overwhelming. It’s no surprise that many small businesses fail in their first five years of opening their doors.

Another challenge the small business owner may face, especially if they’re trying to secure a loan for their business, is getting life insurance.

We’ve taken several calls here at our office from business owners that are in the loan process, and they’ve been dropped a bomb. They have to get life insurance coverage for the amount that the loan that they’re trying to obtain, and until they can actually get coverage, the bank will not approve the loan. Therein lies the predicament.

Traditional underwriting, although much less expensive, can take anywhere from four to six weeks, and sometimes longer, to get your decision. If you don’t have the time to apply for a cheap term policy, then you’re going to have to look at a simplified issue.

Fast Life Insurance to Secure a Loan

Simplified issue are policies that don’t require a medical exam, and as long as you can pass some basic health questions and then nothing comes up on your motor vehicle report, your MIB, or any of your doctor records, then you can get approved from anywhere from 48 hours to five to seven business days.

Carriers such as Fidelity Life, Assurity, and Americo are three of the top carriers that offer simplified life insurance policies, and once again these simplified issue policies require no medical exam. The only issue that may come up depends on the size of policy.

For example, Assurity will only offer you up to $350,000 of term coverage on a no medical exam policy, so if you need more than that, then you’re going to have to use more than one carrier to get you the full life insurance coverage that you need.  Assuirty is just one example of a life insurance company, but the majority of companies all offer plans with relatively low values.

The other disadvantage to these simplified issue plans is the price. Because they don’t require a medical exam, there is more risk to the company, which means they have to offset their risk by charging you more every month. If your main goal is to get coverage quick, and money isn’t an issue, then these plans are the best option.

If you’re looking for a cheaper option and you don’t need the coverage immediately, then there are better options for your wallet. If you’re looking for the most affordable monthly rates for a life insurance policy, then a term life insurance plan will be your best bet. These plans only last for a predetermined time, normally between 5-30 years and after that, they are no longer effective and you have to reapply for coverage. They come in just about any amount that you want to purchase in coverage and tend to be much cheaper than other life insurance options.

The biggest problem with these plans is how long they take to get approved. We mentioned earlier that the main disadvantage to traditional policies is the medical underwriting and the application process that you have to go through to get approved, which can take a long time.

Collateral Assignment For Your Business Loan

Once you get approved for the life insurance coverage that you need, make sure to let the carrier know why you’re taking life insurance. The reason is, is that you’re going to want to request a collateral assignment form that makes the lender the beneficiary on the policy. Almost all insurance carriers will offer the ability to assign collateral assignment; you just have to make sure that you make them aware.

Hopefully if you have a family involved, you’re taking out a larger policy that not only covers the amount of the loan, but also it leaves something left over for your family. In that case, with the collateral assignment form, you can list the lender for the beneficiary of the loan amount, and then the remaining portion can go to your beneficiaries.

#ap67431-wwfont-family:Archivo,sans-serif#ap67431-wwpadding-top:20px;position:relative;text-align:center;font-size:12px#ap67431-ww #ap67431-ww-indicatortext-align:right;color:#4a4a4a#ap67431-ww #ap67431-ww-indicator-wrapperdisplay:inline-flex;align-items:center;justify-content:flex-end;margin-bottom:8px#ap67431-ww #ap67431-ww-indicator-wrapper:hover #ap67431-ww-textdisplay:block#ap67431-ww #ap67431-ww-indicator-wrapper:hover #ap67431-ww-labeldisplay:none#ap67431-ww #ap67431-ww-textmargin:auto 3px auto auto#ap67431-ww #ap67431-ww-labelmargin-left:4px;margin-right:3px#ap67431-ww #ap67431-ww-iconmargin:auto;display:inline-block;width:16px;height:16px;min-width:16px;min-height:16px;cursor:pointer#ap67431-ww #ap67431-ww-icon imgvertical-align:middle;width:16px;height:16px;min-width:16px;min-height:16px#ap67431-ww #ap67431-ww-text-bottommargin:5px#ap67431-ww #ap67431-ww-textdisplay:none#ap67431-ww #ap67431-ww-icon imgtext-indent:-9999px;color:transparent

Ads by Money. We may be compensated if you click this ad.Ad

Deciding how much life insurance you need

Obviously, you have to get a policy that is large enough to fulfill the amount of the loan, but if you don’t have any other coverage, you should get much more than that. Sit down with your loved ones and discuss all of the debt that you would leave behind.

When you’re looking for an insurance plan to secure your loan, consider getting extra coverage that would pay off any personal debt as well. Things like mortgages, car payments, credit card bills, and more can be extremely difficult for a grieving family to pay for.

Before you can buy a plan, you have to know the right amount of coverage. It’s delicate balance deciding how much to buy.

Getting the Best Rates

If you’re looking to get a life insurance policy to secure a loan, it’s important that you get the best rates possible for your coverage. Sure, the main purpose is to secure the loan, but it also provides security for you and your family if something awful was to happen.

Before you buy life insurance, get several quotes from different companies before you pick the best one. You’ll get different premiums from every company you contact.

If you wanted to get all of those quotes yourself, you could easily spend days on the phone talking to agents. Your time is valuable, don’t waste it comparing rates and answering the same question with dozens of agents. We can help you get the best quotes from the highest rated companies around.

The best piece of advice we can give you when getting a life insurance policy to secure a loan is to plan ahead and have all of the information you need ready. If you plan ahead well enough, you will give yourself enough time to apply for a traditional policy that can save you money every month. There is nothing wrong with a simplified issue policy, but it’s going to come with a price. As a business owner and entrepreneur, it’s vital to get the best products at an affordable price.

Source: goodfinancialcents.com

Apache is functioning normally

The Offers

  • American Express is offering increased offers on the Delta cobranded cards.
  • Personal offers:
  • Business offers:

Our Verdict

All the offers are worse than the recently increased offers. Because of that we won’t be adding these to our best credit card bonus page.

Source: doctorofcredit.com

Apache is functioning normally

The acting director of the Office of the Comptroller of the Currency has directed seven of the nation’s largest mortgage lenders to review their foreclosure processes amid reports of widespread mishandling of homeowner evictions.

John Walsh told lawmakers at a hearing on the financial regulatory overhaul that some lenders “clearly had deficiencies” in their foreclosure procedures.

The banks include Bank of America, Chase, Citibank, HSBC, PNC Bank, U.S. Bank, and Wells Fargo.

That means five out of six of the top mortgage lenders in the second quarter of 2010 have been told to potentially put the brakes on foreclosures and evictions until a review is conducted.

GMAC, the only bank in the top six that wasn’t explicitly told to review its processes, already halted evictions, cash-for-keys transactions, and lockouts in 23 states after the company warned it could need to take corrective action in connection with some foreclosures.

Chase followed suit a week later, and it’s becoming increasingly likely all major banks and mortgage lenders will get on board to avoid any controversy.

Walsh said the OCC wants to see that they fix the foreclosure processing problems, while also determining whether specific harm has been caused in individual cases.

Last week, the California AG called for Ally to halt foreclosures amid similar complaints, and today the Connecticut AG called for a state-wide foreclosure freeze until things get cleared up.

All the foreclosure issues stem out of paperwork issues (potential fraud), where bank employees who never read borrowers’ files signed off on evictions.

It’s semi-ironic, given many of these lenders may have also committed fraud when they put these borrowers in the homes to begin with.

Update: Bank of America has halted foreclosures, the others will likely do the same.

Source: thetruthaboutmortgage.com

Apache is functioning normally

A common question people ask when buying pet insurance is what is a pre-existing condition for pet insurance. Buying pet insurance is a lot like buying life, health, or car insurance for yourself. There are a number of considerations that insurance providers make to determine how much your insurance premiums will be. The more pre-existing conditions your car or you have, the higher premiums will be.

The same is true for pre-existing conditions for pet insurance. It isn’t uncommon for pet insurance providers to decline coverage for specific pre-existing conditions to a pet owner. The policy for pet health insurance usually varies between providers and explains what diagnoses, treatments, and conditions it covers – and which it doesn’t.

This article will take a closer look at what pre-existing conditions are for pet insurance, why they are important, and what your options are to keep your pet safe.

What’s Ahead:

What are pre-existing conditions for pet insurance?

According to insurance providers, the pre-existing condition includes any kind of health issues, major injuries, or adverse medical history reviews that your pet developed before you’re in the waiting period. If your pet has a pre-existing condition, it doesn’t mean that you won’t be able to obtain a pet insurance policy.

Instead, it may either mean higher premiums or that your plan won’t cover the costs of these pre-existing conditions. If there are incurable pre-existing conditions, the plan will take the costs that could directly relate to recovery because of said diseases when deciding on the premiums.

Since the idea of pet insurance is to reduce vet care costs, you should carefully consider how much insurance premiums you are willing to pay before the venture doesn’t remain cost-effective anymore. Some of the best pet insurance providers don’t take pets with pre-existing conditions for this very reason.

Common pre-existing conditions

Generally, if you look at what are pre-existing conditions for pet insurance for different providers, you may find at least the following conditions:

  • Diabetes
  • Cancer
  • Heart disease
  • Urinary tract infections
  • Hip dysplasia
  • Ear infections
  • Respiratory infections
  • Arthritis
  • Epilepsies
  • Severe allergies
  • Major injuries
  • Other incurable pre-existing medical conditions

There are two types of pre-existing conditions that a pet owner has to report.

Temporary pre-existing conditions

As per pet insurance companies, if your pet has a pre-existing condition that used to be present but has no impact on its activities or health in the present, it is considered a temporary pre-existing condition. These are pre-existing conditions that are not present anymore, such as a past respiratory infection or a broken bone.

Permanent pre-existing conditions

Pet owners need to report any condition that the pet may be facing at the time of starting the policy – and the waiting period. These could be life-long issues that may return at any time because of the changes in environmental conditions, diet, or more. A prime example of this include lung issues, diabetes, and more.

What happens if my pet has a pre-existing condition?

Generally, pet insurance plans cover almost every condition, provided it occurs after activating the policy. For example, if your pet develops cancer, diabetes, or a respiratory condition after you have acquired the policy, it will be covered.

If, however, there are pre-existing conditions when you are looking to obtain pet insurance, most pet insurance companies will not cover pre-existing conditions. However, it will not prevent you from getting an insurance policy. Insurance companies will either give you a plan with heightened premiums, or they may not cover costs associated with pre-existing conditions.

Determining pet’s pre-existing conditions

Almost every insurance company first looks at your pet’s medical record before accepting any case. The pet health insurance company first considers if there are any signs of any illnesses at the time of policy waiting periods. These illnesses would be considered pre-existing conditions. Pet insurance providers also consider the past vet bills to determine the type of care you choose, the pet’s condition in general, and any medical history reviews.

Determining factors

Your pet’s breed, gender, age, and pet parents’ health also play a crucial role in determining the premiums and identifying what the pet develops in the future. For example, pugs are known to develop hernias and cancers, while Siamese cats may often develop asthma. These aren’t classified as pre-existing conditions and will therefore be covered if the illness does not exist at the time of the policy.

It is important to note that you can plead your case with a different pet insurance plan. In many cases, even if they decline coverage for pre-existing conditions, pet insurance companies often have good relations with veterinary care providers. They can help you get on a veterinary discount plan if needed. These plans are particularly helpful if you have multiple pets with different medical conditions.

Pet insurance policies for pre-existing conditions

Recently, the question of what pre-existing conditions are for pet insurance has increased considerably. This is because most veterinarians are offering more technologically advanced techniques and medicine. As a result, the cost of surgery, hip dysplasia recovery, chemotherapy, and other services are getting more expensive – albeit more effective.

A review in numbers

Almost 69 million households (over 90.6 million families) in the US own at least one pet, with dogs being among the most common types of pets in the suburbs as well as in urban settings. The number of pet parents is also rapidly increasing as a result. Dogs are followed by cats and freshwater fish, with 45.3 million and 11.8 million owners, respectively.

According to surveys conducted by pet insurance providers, roughly 14.75% of households have more than one dog, and 13.01% are looking to buy in the near or far future. As the number of pets increases, so will the need for pet insurance.

What does this mean?

The increasing costs of veterinary care, more people becoming pet owners, the prevalence of curable pre-existing conditions, and the overall increase in the number of visits to pet care facilities mean a higher demand for pet insurance policies.

According to NAPHIA (North American Pet Health Insurance Association), the average annual insurance premium is increasing every year. In 2018, it was roughly $556 for dogs, which increased to $600 by 2020. According to the American Veterinary Medical Association (AVMA), the vet bills coverage and premiums vary with respect to the provider and how they cover pre-existing conditions.

Most common pre-existing condition claims

According to NAPHIA and AVMA, the most common disease in dogs, cats, goats, cows, birds, and hamsters include:

  • Urinary tract infections
  • Ear infections
  • Gastroenteritis
  • Diarrhea or constipation (associated with pain)
  • Skin conditions
  • Arthritis
  • Allergies
  • Heart disease
  • Constant vomiting
  • Eye infections and other conditions
  • Cancers
  • Geriatric conditions

Many of these conditions may qualify as pre-existing conditions, depending on the timing of when you choose to get your pet’s pet insurance coverage started.

Dealing with a pet’s pre-existing conditions

As mentioned above, the frequency of health problems in pets seems to be actively increasing. It is imperative that you find an insurance policy that meets your needs as quickly as possible. Many pet owners aren’t sure of when the best time is to get in touch with insurance companies to avoid declaring a pre-existing condition.

Remember, not only is waiting for an expensive and risky venture, but there is also a chance that you may have to pay fines if it was later revealed that you hid something from the providers. Many insurance companies don’t insure a pet’s pre-existing condition. As a pet owner, you have several options once rejected by one pet insurance company.

  1. Try out other insurance providers.
  2. Ask a veterinary care provider for discount plans.
  3. Ask a veterinarian to request an insurance company because of your unique circumstances. This may include suggesting that the present issue is a temporary condition and that it shall not have such a major impact in the future.

It is important to note that human insurance companies such as car insurance providers or human medical or life insurance companies are not allowed to discriminate between clients based on their pre-existing conditions. As far as pets are concerned, though, there are no regulations suggesting that pet insurance companies can or cannot adopt such practices.

This means that insurance companies are at full liberty to discriminate between pets (and their owners) who have a pre-existing condition when it comes to offering them a piece of the pie.

Is the higher pet insurance policy premium worth it?

chance that if you plead your case, some organizations may be willing to give you a pet insurance policy. Pet Assure, for instance, offers pet insurance plans even if there are pre-existing conditions.

But is the higher cost worth it?

Generally, it is never a good idea to wait when it comes to health insurance plans – for yourself or your pet. You never know when you may need it. However, even if you are currently focused on treating disease(s) that may be considered pre-existing conditions (which won’t be covered by the pet insurance policy), coverage could still be worth the cost.

For example, a pug who has hip dysplasia (a pre-existing condition) can still develop respiratory infections, urinary infections, heart disease, or cancer. Getting your pug insured now would have been much more beneficial in this case than waiting for the pre-existing condition to go away.

Furthermore, routine care visits may also end up costing quite a lot. From antibiotics to vaccinations, antifungal medications, hospitalization, diagnostic checks, and more could be quite taxing and can add up fairly quickly.

There is no doubt that pet insurance can be the saving grace you need when unexpected costs start adding up. Even if there are pre-existing conditions that won’t be covered or a rise in premiums because of the condition, going for pet health insurance policies may help you tackle the future much more confidently. You always have the option to from different pet insurance companies to find one that is best suited to your needs and your pet’s medical conditions!

Source: moneyunder30.com

Apache is functioning normally

Throughout the course of history mankind has written a lot of books. Today, we have over one hundred and thirty million books. Great right? But some of these books are forbidden, or mysterious. Some are extremely ancient, or even predict the future. In this post we’re looking at a list of books you may not actually want to read!

1. The Book of Soyga 

Photo Credit: Shutterstock.

The Book of Soyga, also known as Aldaraia, is a medieval text believed to be a treatise on magic and the occult, written in a ciphered language. Its authorship is attributed to John Dee, an Elizabethan scholar, and occultist, but this has not been definitively proven. The book consists of several sections, including a list of angels, invocations, and a treatise on the nature of magic. It has been difficult for scholars to decipher due to its complex cipher. Despite its mysterious nature, the Book of Soyga remains a fascinating artifact of medieval magic and a subject of ongoing study for scholars of esotericism and occultism.

2. The Prophecies of Nostradamus 

Photo Credit: Shutterstock.

The Prophecies of Nostradamus is a book of prophetic verses and quatrains written by Michel de Nostradamus, a French physician, and astrologer in the 16th century. The book contains predictions of future events, including natural disasters and political upheavals, and Nostradamus claimed his prophecies were based on divine inspiration and his own observations of the stars and planetary movements. Despite controversy and skepticism, his quatrains have been translated into many languages and continue to fascinate readers worldwide, with many still studying his writings to unlock the secrets of his prophecies. The Prophecies of Nostradamus are one of the most famous and enduring examples of prophetic literature.

3. The Ripley Scroll

Photo Credit: Shutterstock.

The Ripley Scroll is an important alchemical work from the 15th century, known for its intricate illustrations and detailed instructions on creating the Philosopher’s Stone. The facsimile edition allows for a detailed examination of the entire scroll and includes expert interpretation and transcription of the text to help readers understand the complex symbolism and alchemical processes depicted. It is a fascinating and informative work that will captivate and inspire both scholars of alchemy and curious readers.

4. The Beale Ciphers 

Photo Credit: Shutterstock.

The Beale Ciphers are three encrypted messages that supposedly lead to a buried treasure worth over $63 million. They were created by Thomas Beale in the 19th century and given to a friend for safekeeping. The first cipher was cracked, but the other two remain unsolved. The ciphers use a book cipher system and have attracted many attempts at deciphering them. Despite claims of treasure discovery, no solid evidence has been found, making the Beale Ciphers a popular subject of interest among enthusiasts of unsolved mysteries.

5. The Voynich Manuscript

Photo Credit: Shutterstock.

The Voynich manuscript is a handwritten book filled with illustrations of plants, astrological symbols, and human figures, among other things. Its origin dates back to the early 15th century and is named after Wilfrid Voynich, the book dealer who acquired it in 1912. The manuscript is divided into six sections and is written in an unknown script that has never been deciphered despite many attempts. Some experts consider it a hoax, while others believe it may be a coded message from an unknown author. Many theories have been proposed regarding its meaning and purpose, including medical, alchemical, religious, and philosophical texts. Despite its unknown origin and content, the Voynich manuscript has captured the interest of scholars and the public as one of the most intriguing and mysterious manuscripts in history.

6. The Dead Sea Scrolls 

Photo Credit: Shutterstock.

The Dead Sea Scrolls are a collection of ancient Jewish texts discovered in the 20th century near the Dead Sea. They were found in eleven caves near the settlement of Qumran, and include biblical and non-biblical Jewish texts, as well as insights into the beliefs and practices of a Jewish sect. The scrolls shed light on the history and development of Judaism and early Christianity in the Second Temple period and have had a significant impact on the study of ancient biblical manuscripts. They are now housed in various institutions and have been widely studied by scholars and popularized in books and films.

7. The Liber Linteus 

The Liber Linteus is an ancient Etruscan text that was discovered in the late 19th century in a tomb near the Croatian city of Zagreb. It is believed to date from the 3rd century BCE and is one of the longest surviving Etruscan texts. The text appears to be a ritual calendar or liturgical text, possibly related to a particular religious cult. It is written in the Etruscan language and uses a form of the Etruscan alphabet. Although many parts of the text are missing, the discovery of the Liber Linteus has provided valuable insights into the culture and language of the ancient Etruscans, a civilization that thrived in central Italy before the rise of the Roman Empire.

8. The Gigas Codex

Photo Credit: Shutterstock.

The Codex Gigas is a well-known medieval manuscript that is remarkable for its size and contents. It was created in the early 13th century, possibly in a Benedictine monastery in Bohemia. The manuscript is massive, weighing around 165 pounds and measuring 36 inches tall, 20 inches wide, and nearly 9 inches thick. It contains 310 pages made of calfskin and written in Latin. One of the most notable features of the manuscript is a full-page illustration of the devil, which has led to it being nicknamed the “Devil’s Bible.”

More that Just a Bible

Photo Credit: Shutterstock.

The Codex Gigas includes various texts, such as the entire Bible in Latin, as well as other historical, medical, and magical works. The Chronicle of Bohemia is a prominent text in the manuscript, containing an extensive history of the region up to the 12th century. Today, the Codex Gigas is housed in the National Library of Sweden in Stockholm, where it remains one of the most significant and valuable manuscripts from the medieval era.

From medieval texts on magic and prophecy to ancient manuscripts written in unknown scripts, these books continue to captivate scholars and curious readers alike. While some of them may be difficult to understand or even potentially dangerous, they offer a glimpse into the history, beliefs, and knowledge of past civilizations and cultures.

10 Terrible Movies That Everyone Seems to Love

Photo Credit: Shutterstock.

Have you ever decided a movie was completely terrible only to discover everyone else seems to love it? You’re not alone: check out this post of terrible movies that people said they really enjoyed!

10 Movies You Will Want to Watch Over and Over Again

Photo Credit: Shutterstock.

What’s your go-to comfort movie? We put together a whole post of movies people said they could watch again and again.

Here are 10 of The Most Beautiful Songs People Have Ever Heard

Photo Credit: Shutterstock.

What’s your absolute favorite song? Here’s a list of songs people deemed the most beautiful song they’ve ever heard.

10 Incredible Movies That People Rated 10 Out of 10

Photo Credit: Shutterstock.

It can be hard to find a really great movie to watch; most of them fall short in one way or another. But these ten movies are perfect in almost every way.

15 TV Series People Would Pay to Watch for the First Time Again

Photo Credit: Shutterstock.

Have you ever re-watched a series only to realize it hits different the second time around? Here are 15 TV shows people would pay money to watch for the first time all over again.



About the Author



Source: financequickfix.com

Apache is functioning normally

Looking to buy an investment property, but can’t afford a 20% down payment? Well, welcome to the party.

Source: Giphy.com

Thankfully, like Bruce Willis in Die Hard, we Millennials and Gen Z have some tools at our disposal to defeat the evil cash investors, get approved, and get the keys to our new home.

One such tool that’s making a comeback is the piggyback loan, which cuts your down payment in half (to 10%) and lets you pay off the other half over time, alongside your first mortgage.

What’s Ahead:

What is a piggyback loan?

A piggyback loan is a second mortgage that you get at the same time as your first mortgage, hence the name.

Piggyback loans are designed to help homebuyers who can’t afford a 20% down payment avoid having to pay for expensive private mortgage insurance (PMI).

While your first mortgage will typically be a traditional mortgage, your piggyback loan, aka second mortgage, will likely come in the form of either a home equity loan or home equity line of credit (HELOC).

Read more: What Is A Home Equity Loan & Home Equity Line Of Credit (HELOC)?

There are two common types of piggyback loans, and each has its pros and cons. 

The 80-10-10 loan – for single-family homes and townhomes

The 80-10-10 is the classic piggyback loan structure right for most situations. As illustrated above, in an 80-10-10, you’ll get 80% of the home covered by your first mortgage, 10% covered by your piggyback loan, and you’ll pay the remaining 10% out of pocket.

The good ol’ 80-10-10 is a great fit for single-family homes and townhomes, but condos are another story.

The 75-15-10 loan – for condos

Unlike single-family homes and townhomes, condos typically require 25% down to qualify for the best mortgage rates. That’s because lenders, even at the federal level, consider condos to be riskier, with more factors outside of their control (HOA fees, maintenance, etc.).

Therefore, the 75-15-10 loan emerged to help prospective condo buyers hit that 25% down payment. The only major difference is the amount you’re paying off with your first versus second mortgages – you’ll still have to put down 10% cash.

Now that it’s pretty clear which piggyback loan is right for you, what do the qualification criteria look like?

How do piggyback loans work?

Source: Giphy.com

Let’s say you want to buy a $300,000 house, but you can’t afford a 20% down payment of $60,000. So, your lender requires you to get private mortgage insurance (you can learn all the ins and outs here).

PMI protects your lender, not you, by helping them recoup their costs in case you default on your mortgage during the first few years of your loan. You typically don’t have to pay PMI any longer once your loan-to-value ratio (LTV) hits 78%, i.e. you’ve paid off 22% of your home.

Now, the reason folks try their darndest to save 20% is because PMI sucks.

PMI typically costs around $30 – $70 per month for every $100,000 borrowed.

Now, you can save some money on PMI by paying it all upfront – so you’ll pay several thousands of dollars of PMI because you can’t afford tens of thousands of dollars of down payment – and none of that money goes into your home equity.

Like I said, PMI sucks.

Thankfully, piggyback loans emerged as a popular, 100% legal way to avoid having to pay for PMI.

Here’s a classic example of a piggyback loan (known as the 80-10-10 loan)

  1. Get a traditional mortgage to cover 80% of the cost of the home.
  2. Get a HELOC to cover 10%.
  3. Make a 10% down payment out of pocket.
  4. Avoid having to pay PMI, do a little dance.

To be clear, piggyback loans aren’t being “sneaky” or going behind your first lender’s back. In fact, many lenders are happy to underwrite your piggyback loan themselves, or at least refer you out to another lender specializing in piggybacks.

How can you apply for a piggyback loan?

The how is actually pretty straightforward – you’ll simply want to ask your first mortgage lender for suggestions on a second mortgage. Sometimes they’ll underwrite it themselves, and other times they’ll refer you out to multiple financial institutions to rate shop with. We don’t really curate a list of the best piggyback lenders because it all depends on where your first lender sends you.

If you’d like to explore your options for a piggyback before you commit to a first mortgage, you can simply ask your prospective lenders what their piggyback process looks like. Even better, if you’re able to connect with a loan officer, you can take a step back and ask if a piggyback is even your best option. That particular lender might have its own program that’s a better fit for your unique financial situation.

For a curated list of the best lenders with the lowest rates, check out our article: Best Mortgage Rates – Mortgage Rates Updated Daily.

Why would you get a piggyback loan?

Here are the three most common circumstances prospective home buyers consider a piggyback loan:

  1. You can’t afford a 20% down payment, and you want to avoid PMI.
  2. You’re looking to buy a new house before your old one sells.
  3. You’re considering a home whose value exceeds your local mortgage limits.

Chances are, if you’re reading Money Under 30, you fall into the first category: you can only afford a 10% down payment but don’t want to pay for PMI.

Will getting a piggyback loan save you money?

Possibly.

You’ll need to talk to your lender and do some math, because there are multiple money-saving options out there.

The chief advantage to piggyback loans is that they let you avoid PMI. However, piggyback loans still incur some costs of their own. It’s a second, tiny mortgage, after all, so you’ll be on the hook for:

  1. A second round of closing costs.
  2. A second monthly payment in addition to your first mortgage.
  3. Higher interest rates than your first mortgage.

For these reasons, a piggyback loan might not end up being your cheapest option.

FHA loans with PMI might still be cheaper than a piggyback loan

When you factor in the costs listed above, you might find that getting a Federal Housing Administration (FHA)-backed loan and paying for PMI actually ends up being cheaper overall.

That’s especially true if you qualify for one of your state’s housing assistance programs, which may offer down payment loan assistance or subsidized PMI.

In the end, you should definitely still consider both a piggyback loan and an FHA loan as cost-saving options. 

Read more: First-Time Home Buyer State Programs – What You Need To Know As A First-Time Buyer

Piggyback loans: pros and cons

Let’s recap the advantages and disadvantages of getting a piggyback loan:

Pros

  • Save money on PMI. A piggyback loan helps you put 20% down so you can avoid paying thousands in private mortgage insurance.
  • Make a lower down payment. By cutting your down payment in half, piggyback loans can help you to afford more house.
  • Pay off piggyback loan anytime. Most lenders will let you pay off your piggyback loan anytime, leaving you with only a low, monthly mortgage.

Cons

  • Steep requirements. Piggyback loans typically require a 700+ credit score and a debt-to-income ratio of 28%, meaning you’ll likely only qualify with excellent credit and high income.
  • Double the closing costs and paperwork. When you apply for a piggyback loan, you’re essentially applying for a second mortgage and all that entails – double the paperwork, closing costs, and of course, another monthly bill (with higher interest than your first mortgage).
  • Not always cheaper than a traditional mortgage plus PMI. You’ll want to do the math with your loan officer, because piggyback loans don’t always save money. You may get a better deal with an FHA-backed loan, state assistance, or even biting the bullet and paying for PMI.

Summary

In a competitive housing market, our generation can use every tip, tool, and strategy we can get. The piggyback loan is one such tool, helping eligible borrowers slash their down payment in half so you can get the keys to a new home faster.

You should consider a piggyback loan if you have consistent income, excellent credit, and can currently only afford 10% of a down payment on a house within your budget. Even then, it may not be your best money-saving option – you should also check out an FHA-backed loan and state- and lender-specific programs.

Read more:

Source: moneyunder30.com

Apache is functioning normally

There are numerous types of stocks, categorized by company characteristics, size, region, sector, and more. Equipped with an understanding of different stock types, an investor can start building a diversified portfolio. Though all stocks can experience volatility and potentially lose value, holding a mix of different types of shares can mitigate the risk of being too heavily invested in any one category.

An Overview Of Stocks

A stock represents a percentage of ownership in a publicly traded company. So essentially, investors can own small pieces or “shares” of companies.

Generating returns via the stock market can usually happen in one of two ways. First, the value of the stock can increase over time, something known as capital appreciation. The second is through dividend payments, where companies make cash payouts periodically to all owners of that company’s stock. Some people make investments based on a company’s ability to pay consistent dividends, or “income.” Utility and telephone companies often fit into this bucket.

When you own a stock, you hold equity (or ownership) in that company. That’s why stocks are sometimes referred to as equities. Each individual share represents an equal proportion of ownership. Owners of stocks are often referred to as stockholders or shareholders.

Stock Classifications

Here are some of the ways different stocks are categorized:

Common stock represents shares of ownership in a corporation. When an investor receives common shares, they are typically also granted voting rights to the company and can participate in shareholder voting processes — usually one vote for each share.

Preferred stocks make regular dividend payments, but holders of preferred shares often have zero or limited voting rights. If a company becomes financially insolvent however, preferred stockholders have a claim on assets before common shareholders do.

Exchange-traded funds (ETFs) group multiple securities into a single share. For instance, a stock ETF will hold numerous companies, while a bond ETF can hold many individual bonds, whether it’s a collection of Treasurys or high-yield debt. ETFs are popular because of the cheap, instant diversification they offer.

Initial Public Offerings (IPOs) is the process of a private company listing and debuting on a public stock exchange. Investors can buy IPO shares on their first day of trading.

Special Purpose Acquisition Companies (SPACs) are shell companies that go public on the stock exchange, and then try to find a private operating business to purchase.

Real Estate Investment Trusts (REITs) are companies that own and operate real estate, usually focusing on one type of property, such as warehouses, hotels or office buildings. There are pros & cons to investing in REITs. For example, one pro is that they tend to pay consistent dividends. Cons include sensitivity to interest rates, and taxed dividends.

Different Market-Caps

The sizes of stocks are classified by the market capitalization of the company’s publicly traded stock. Market cap is calculated by multiplying the stock price by the total number of outstanding shares.

Generally speaking, larger companies tend to be older, more established, and have greater international exposure — so a higher percentage of a large-cap company’s revenue comes from overseas. Meanwhile, smaller-cap stocks tend to be newer, less established and more domestically oriented. Smaller-cap companies can be riskier but also offer more growth potential.

While the market-caps that determine which companies are small or large can shift, here’s a breakdown that gives some rough parameters.

Micro-Cap: $50 million to $300 million

Small-Cap: $300 million to $2 billion

Mid-Cap: $2 billion to $10 billion

Large-Cap: $10 billion or higher

Mega-Cap: $200 billion or higher

Stock Style Categories

Stocks are also sometimes classified by styles of investing. These categories often have to do with how that company makes money and how the stock is valued. You may often hear this associated when discussing value vs growth stocks.

Value stocks are stocks that are considered to be trading below their actual worth. Investors hope that by buying companies that are priced below their “true” value, they can profit as the gap narrows over time.

Growth stocks are companies that are growing at a fast pace or those that are expected to continue growing at a faster rate than other stocks or competitors. Investors can encounter higher valuations in growth investing.

Stocks By Sector

Additionally, stocks are often grouped by the industry that that company works within. According to the Global Industry Classification Standard (GICS), there are 11 recognized sectors, with numerous industries within those sectors. They include (but are not limited to):

Energy: Energy equipment and services, oil, gas, and consumable fuels

Materials: Chemicals, construction materials, containers and packaging, metals and mining

Industrials: Aerospace and defense, building products, machinery, construction and engineering, electrical equipment, industrial conglomerates

Consumer Discretionary: Automobiles, automobile components, household durables, leisure products

Consumer Staples: Food products, beverage, tobacco, household products

Health Care: Health care equipment and services, pharmaceuticals, biotechnology, life sciences

Financials: Banks, insurance, consumer finance, capital markets, financial services

Information Technology: IT services, software, communications equipment

Communication Services: Diversified telecommunication services, media, entertainment

Utilities: Electric utilities, gas utilities, water utilities, independent power and renewable electricity producers

Real Estate: Real estate management and development, various REITs (retail, residential, office, etc.)

Stocks by Country

Different overseas stocks can be classified by the country or region in which they’re headquartered, even if the company’s operations are global. Individuals looking to invest in international stocks have found that they can do so easily with ETFs, which hold numerous foreign companies within a single share.

Regions that are commonly used in the world of stock investing are:

EAFE is an acronym which stands for Europe, Australasia, and the Far East. Investors may see this used when making investment choices, as the MSCI EAFE is a common index used for international stock funds. These countries are all “developed” nations, which means they have established financial markets, stable political climates, and mature economies.

Emerging-market stocks, which stocks with companies based out of countries whose economies are described as developing. Brazil, Russia, Mexico, China, and India are just a few emerging markets. Emerging markets may be riskier to invest in but may pose an opportunity for high rates of growth.

The Takeaway

There are numerous types of stocks on the market, and it can be important for investors to understand the differences between them. The stock market can be volatile and prone to dramatic declines, but in order to shield themselves from the risks, investors often create diversified portfolios by stocking their holdings through various different stock types.

Diversification is easier to do if an investor understands the different types of stocks that exist in the U.S. equity market. From mega-cap stocks to ETFs to emerging-market companies, there are a myriad of investing opportunities in the equity market.

Ready to invest in your goals? It’s easy to get started when you open an Active Invest account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).

For a limited time, opening and funding an account gives you the opportunity to win up to $1,000 in the stock of your choice.

SoFi Invest®
The information provided is not meant to provide investment or financial advice. Also, past performance is no guarantee of future results.
Investment decisions should be based on an individual’s specific financial needs, goals, and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . SoFi Invest refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below.
1) Automated Investing—The Automated Investing platform is owned by SoFi Wealth LLC, an SEC registered investment advisor (“Sofi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC, an affiliated SEC registered broker dealer and member FINRA/SIPC, (“Sofi Securities).

2) Active Investing—The Active Investing platform is owned by SoFi Securities LLC. Clearing and custody of all securities are provided by APEX Clearing Corporation.

3) Cryptocurrency is offered by SoFi Digital Assets, LLC, a FinCEN registered Money Service Business.

For additional disclosures related to the SoFi Invest platforms described above, including state licensure of Sofi Digital Assets, LLC, please visit www.sofi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform. Information related to lending products contained herein should not be construed as an offer or prequalification for any loan product offered by SoFi Bank, N.A.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Investment Risk: Diversification can help reduce some investment risk. It cannot guarantee profit, or fully protect in a down market.

Claw Promotion: Customer must fund their Active Invest account with at least $10 within 30 days of opening the account. Probability of customer receiving $1,000 is 0.028%. See full terms and conditions.

SOIN0523073

Source: sofi.com

Apache is functioning normally

The finance world seems to be divided on the topic of credit scores (even if there are free credit scores) and their importance.

Some are all about using their credit to their advantage, whereas others do not care about their credit history at all and think it’s unnecessary and evil.

I’m on the pro credit side. I think your credit history can be used to your advantage, so why not work to improve it?

Plus, you can check your credit score for free. Just click here to find out what your credit score is.

As a background for why we care about our credit right now: We are in the very beginning stages of buying a new home. Since we are both self-employed, obtaining a mortgage is a little more difficult. Having a great credit score is one of the areas where we will be analyzed. We also care about our credit because we like to use credit cards with great rewards programs.

Why is your credit score important?

There are too many people out there who have no clue what their credit score is. Too many people also have never checked their credit report. It doesn’t make much sense since you can get your free credit score easily and you can even get your credit score online for free.

I think this is a MAJOR problem.

Your credit score and credit history are important. You can leverage them and use them to your advantage. Yes, it is possible to have the credit system on your side and have the highest credit score you’ve ever had.

A credit score usually means you can keep more of your money because you will receive lower interest rates on your home or car loan. For example, if you have an excellent credit score, you may be able to qualify for a 0% car loan. However, if you had a bad credit score, you may receive a 24% interest rate on your car loan. Yes, that does exist…

Also, if your credit score isn’t high enough, you may even be completely denied a loan. You may have to pay higher rates or pay larger deposits because you are deemed more risky.

Overall, a good credit score can help you in life.

In the next few weeks, I will talk discuss what is a good credit score, but for today we will talk about why a credit score is important.

When will your credit score be checked?

How some go about with never needing their credit score or credit report is beyond me. Good for those of you who do not need it, but I think most people enjoy having a credit history.

There are many instances where your credit score and/or credit report may be looked at, and sometimes they have nothing to do with a loan.

Home and car insurance – If you have car or home insurance, your rate may be calculated on one factor that you did not know about – your credit score. If your credit score isn’t good, then you may actually be paying more because companies may consider you to be more risky.

Employer – This might be shocking to hear, but there are some employers out there who will check your credit report (with your permission). Industries that often check your credit report include those that deal with financial services, chemical, and defense.

Renting a home – If you have decided that you don’t want to own a home, do not think that you have escaped having your credit history checked. Your landlord will most likely check your credit history. They will want to know if you pay your bills on time or if you have skipped bills entirely. This will say a lot about you as a renter, whether you want to believe it or not. If your credit history is not something they want to see, you may be denied the rental altogether, you may be asked to pay multiple months at once, or you may be asked to find a co-signer just in case you fail to pay your rent.

Credit cards – If you don’t care about credit, then you probably will not care about this one. However, if you want a credit card, especially one with a good rewards system in place (learn more at How To Take A 10 Day Trip To Hawaii For $22.40), then you will want a higher credit score. The good reward credit card offers and acceptances are usually only available to though with good or excellent credit scores.

Loans (home, car, etc.) – If you apply for a loan, your credit score and credit history will definitely be checked. Before you are approved for a loan of any sort, the lending institution is going to thoroughly check your financial history so that they don’t end up losing money on your loan. There are a lot of expenses that go into owning a home, so getting the lowest interest rate possible is very important.

Credit Sesame Review

I once signed up for a free credit score company who used to have those catchy singing commercials. I thought it they were supplying a free credit score, and I remember being charged months later. I didn’t catch the charge the first time either, and I was actually charged a few times before I noticed.

Yes, yes, I know. I’m a personal finance blogger who made a huge mistake!

However, that was a long time ago and I have learned from my mistakes. And that’s why I want to do a review on Credit Sesame so that you can check your credit score for free.

If you are looking for a truly free credit monitoring service, then Credit Sesame is for you. Other companies say that they are free, but they usually charge you a fee later on when you probably won’t notice. Credit Sesame doesn’t ask for your credit card, so there is NO WAY that they can secretly charge you later.

Credit Sesame uses the Experian National Equivalency score, whereas most lenders will look at the FICO score. However, the scores are usually fairly similar.

Okay, so you’re probably wondering how everything is free. They must make money somehow right? Well, yes they do. Credit Sesame makes money by showing you different home loans and credit cards you may qualify for. If anyone clicks on these links, then they may make money that way.

Your next question may be “Will checking my free credit score on Credit Sesame hurt my score?” Nope! It is just a soft pull so it will not affect your credit score.

If you are interested in checking your FREE credit score through Credit Sesame click here. It’s completely free.

How often do you check your credit score? Are you trying to increase your credit score? Why or why not?

Related Posts

<!–

–>

Source: makingsenseofcents.com

Apache is functioning normally

Deal alert: Bose Noise Cancelling Headphones 700 via Amazon.

I was a convert to the Apple AirPods.

I used to have a pair of Beats over-ear headphones, but once the noise-canceling AirPods Pro came out, I believed that over-ear headphones merely offered squashed ears and another big case to carry in my already full luggage.

However, after a couple of weeks of traveling, covering north of 10,000 miles with the Bose Noise Canceling Headphones 700, it became apparent that my over-ear headphone stereotypes were nothing more than total misconceptions thanks to this pair of headphones’ plethora of high-tech features.

These headphones, which regularly retail for $379, are an investment, so it’s notable that right now, the black Bose 700 headphones are at the lowest price ($299) we’ve seen from Amazon this year (as of the time of publication).

What a traveler should look for in a good pair of headphones

KYLE OLSEN/THE POINTS GUY

Let’s face it: We all love surround sound (which deepens the fidelity of audio so it sounds more natural) and noise-cancellation features that reduce external noise. But as nice as those two features are, they’re not at the top of my wish list.

Wired and wireless connectivity

KYLE OLSEN/THE POINTS GUY

As a frequent traveler, I always want to ensure that my headphones offer wired and wireless connectivity. That way, I can wirelessly use the headphones for audio on my phone or laptop or use the cord to plug them into the seatback inflight entertainment system. While this isn’t a difficult prerequisite to meet nowadays, as most headphones over $100 offer this, it’s nonnegotiable in any headphones I invest in.

Most notably, the Apple AirPods only offer a connection through Bluetooth. While some newer IFE systems offer Bluetooth audio, I have yet to see this feature on any of my flights. So, if you’re just traveling with AirPods and want to watch the movies on the screen in front of you on a plane, you’re likely stuck with the crummy inflight earbuds the airlines offer you — if they offer them at all.

Durability

I also want to make sure that my headphones are durable. When I travel, my friends and family often get a kick out of how much I squeeze into my backpack. As a result, I’m looking for a strong case that will keep the headphones safe when my 16-inch MacBook Pro is hastily jammed back into my backpack on top of my headphones after going through an airport security checkpoint.

Sign up for our daily newsletter

Painless calls

Lastly, I always look for a solid microphone that won’t pick up background audio. Let’s say your flight gets canceled and there’s a long line to get rebooked. As I shared in a recent article, getting through to an airline agent quickly is the best way to get rebooked and be on your way. When calling your airline, the last thing you want your agent to say is, “I’m sorry. I can’t hear you. There’s a lot of background noise. Please call back.” That’s why a clear microphone that doesn’t pick up background conversations or announcements is especially important for travelers.

Bose 700 features

1 of 14

KYLE OLSEN/THE POINTS GUY

0

1

2

3

4

5

6

7

8

9

10

11

12

13

Here are some of the features of the Bose 700 headphones that I’ve grown to like.

Noise cancellation

When I let my tech-geek friend know I’d be reviewing the Bose 700 headphones, he told me that some of the newer Sony headphones (like the Sony WH-1000XM5) have better noise cancellation. Though I have yet to try the Sony headphones, the Bose 700 headphones’ noise cancellation impressed me.

You can change noise cancellation from 1 (minimum) to 10 (maximum) through the Bose Music app. There’s also a physical button on the side of the headphones, which can change the noise control, but more on that later.

Going for a walk on a busy street with cars driving roughly 30 mph around me, I was left hearing quiet wooshes as cars passed with the headphones on 10. On my American Airlines flight, I played some calm, quiet Spanish guitar music in the air. While I could still hear some plane noises, the headphones blocked toilets flushing and neighboring passengers talking. As we began our descent, the first time I removed the headphones, I thought to myself, “Wow, this plane is loud,” after being surprised by how much noise there was without the headphones.

The Bose Music app

1 of 10

KYLE OLSEN/THE POINTS GUY

0

1

2

3

4

5

6

7

8

9

After unboxing the headphones, the instructions told me to download the Bose Music app (available on iOS and Android). After downloading the app and permitting it to access Bluetooth, I could quickly connect my headphones to my phone directly in the app. One of my favorite features of the headphones was the ability to connect to both my phone and laptop simultaneously. That way, I didn’t have to manually change the audio connection between the two.

You can also sign up for your own Bose Music login, but luckily, having a Bose Music account isn’t required to use the headphones.

From the Bose Music app, you can adjust the noise cancellation and equalizer, see tips, customize shortcuts and access many more features.

Intuitive controls

KYLE OLSEN/THE POINTS GUY

Controlling the headphones is simple with the three physical buttons (power/Bluetooth, voice assistant and noise control) and the touch-sensitive gesture pad. The headphones came with a simple-to-use guide to help you learn how to use the controls on the right ear cup:

Command Feature
Two taps. Play/pause music and answer or decline calls.
Swipe of finger up or down. Volume change.
Swipe of finger left or right. Change tracks.
Hold Bose logo. Battery reading.
Hold Bose logo during an incoming call. Decline the call.

While it wasn’t hard to learn these controls, they didn’t always work the first time around. For example, two taps on the right ear cup didn’t always pause my music. I also had a hard time with the noise control button. Sometimes it was hard to have the noise cancellation return to the maximum of 10, so I found myself using my phone and the Bose Music app to change many of these controls.

A sleek design with 2 color choices

KYLE OLSEN/THE POINTS GUY

In my opinion, the Bose 700 headphones are beautiful. They’re some of the most stylish headphones on the market. You have the choice of either going with luxe silver or black. When folding the headphones back into their case, each ear cup rotates 90 degrees to fit in easily. At around 9 ounces, I never felt like they were too heavy, and the cushy headband made for hours of comfortable listening.

A long-lasting battery

Bose claims that the battery will last up to 20 hours. In our tests with mixed-use (phone calls, full noise cancellation and moving the headphones from laptop to iPhone and back), the battery lasted 12 hours and 35 minutes. While that’s a far cry from 20 hours, after just 30 minutes of charging from the USB-C cord (included in the headphones), the headphones were back to 30% battery.

Bottom line

The Bose 700 headphones have unparalleled craftsmanship and quality; however, the elephant in the room is the hefty price tag, which thankfully is a bit lower than normal right now at just under $300 for the black version.

Sony has several headphones that offer great sound quality, better battery life and high-quality noise cancellation for under $200. Still, the Bose 700 headphones offer superior comfort while ticking off all the items on my lengthy headphone wishlist. I wouldn’t hesitate to recommend them to a friend.

Source: thepointsguy.com