Retirement Investing Crisis

By Doug West

If the meltdown on Wall Street has taught us anything about investing it is this:

One good lesson is that we need to learn to make our own investment decisions -And Not Let Brokers Make Choices For Us!

This basic fact we have been preaching for many years now. It seems investors either blindly throw money at the market or let a broker do it for them. You should learn to direct your investment accounts and retirement funds on your own.

In this article we want to point you in the right direction, and give you a few crisis tips too.

ETFs (Exchange Traded Funds) are an excellent alternative to mutual funds as an investment vehicle.

There are ETFs that cover every sector of the market. ETFs offer many advantages over mutual funds. Here are a few:

* Tax Advantages - ETFs seldom sell any equity positions or create taxable profit midstream. Mutual funds do this often. With mutuals, you could owe tax on part of the funds holdings (the winning stocks they sell at a profit) even though you lost money over all. A double whammy!

* Less Management Costs - Mutual funds were a great vehicle at one time. Years ago, they were HOT, and many fund investors did well. Then they started loading on the fees and costs. Then came the so called "No-Load" mutuals. These too became top heavy with many "Professionals" employed and eating up GIANT parts of the profit. You might think of ETFs as Electronically Traded Funds. MUCH less management costs (in some cases no management costs) and the ease of trading them.

* Diversification - Let's face it, this is what was attractive about mutual funds to begin with. Instead of picking out stocks on your own, you had "Professionals" (with the meltdown we can see that most of them are not too professional) putting together a diversified portfolio for you. With ETFs, you can get the same if not better diversification without the hassle of dealing with a mutual fund giant eating up all the profits.

* Easy To Trade - With true mutual funds you can only get out of a position After the market closes. You can trade ETFs just like a stock in your discount brokerage account. If you were locked into a fund when the market was in crash mode, it was not a good feeling. Had that been an ETF you could have bailed at any time (before the DOW closed down 777 points!)

We could go on with the benefits of ETFs, but you should be starting to see the picture. An even better way to call your own shots with your investments is to trade the index (or indices for plural). We are referring to the mini Dow, the S&P eMini, the mini Russell and others. (there are also ETFs the mirror the indices such as "SPY" for the S&P 500 index)

While we focus on mini-Dow trading, any index will do. With Index trading, you just follow the overall market up, or ride it down with a short position.

While we are on the subject of shorts it would be good to mention that while most US mutual funds are not allowed to short a stock, you can actually buy ETFs that do good with the market is dropping. One such fund is ticker "DUG" which does well when the Oil price is dropping (a tip we gave our readers after the big run up in oil to over $140 per barrel - at the time of this writing it has been dropping since).

You can find other ETFs that do well in falling markets. So, you don't have to short the market (statistics show that 80% or more of investors never do short the market - but are always looking for a upward bull run), you just buy the right ETF and let it do the shorting for you.

By now, many investors see the importance of having a strategy for making money when the market is dropping. Most investors have yet to develop this strategy. We prefer to do it with simple index trades. Whatever you do, find a way to make your own moves and don't depend on someone else to invest your money for you. No one will take care of your money like you will!

*********************************************************** NOTE: To learn more about ETF's visit Yahoo Finance and look under the Investing Tab at the top of the page - then select ETFs www.finance.yahoo.com ***********************************************************

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Debt-Free Report

New Reverse Mortgage Law Gives Home Buyers Another Option

By Tiag Vanrock

As of January 1, 2009 seniors, 62+, can purchase a home using a reverse mortgage. The reverse mortgage home purchase acts almost identically as a traditional forward mortgage home purchase. Acting similarly, the senior will bring in funds as a down payment from 25% to 55% of the value of the home. The mortgage company funds the balance of the loan.

Of course the benefit to the borrower is she can purchase a home and is not obligated to make mortgage payments for the rest of her time in the home.

The reverse mortgage gained popularity because it allows seniors to tap into their homes equity and use this equity as a source of cash to relieve some financial issue. The mortgage company, in turn, funds the reverse mortgage and does not require monthy repayment of either principal or interest.

Reverse mortgage lenders make money from the accrual of interest over time. When the last surviving spouse dies or the borrower chooses to sell the property, the original loan plus accrued interest is repaid to the bank.

The following are a list of steps to purchasing a home with a reverse mortgage:

1. Borrower is to get a reverse mortgage approval letter from a HUD approved reverse mortgage lender. In conversation with the lender the senior will be advised as to the amount of funds necessary for down payment, closing costs, maximum purchase price, and reverse mortgage loan options.

2. Find a home and write a contract for sale.

3. At closing the borrower will be required to make a down payment between 25% to 55% of the value of the home.

4. At closing, the reverse mortgage company funds the remaining balance and closing costs if desired by the borrower.

5. Title company or attorney records transaction and borrower takes ownership of the home.

6. The borrower is stipulated to live in the home and not use it as an investment property. The borrowers obligations are as follows: Pay taxes and home owners insurance, and keep property above FHA physical standards.

In the near future the typical reverse mortgage candidate will continue to be one in need of funds to relieve financial stress. The reverse mortgage purchase, however, will cater to a certain profile and offer a viable financial tool.

About the Author:

For more info on this subject go to Reverse Mortgage Guide in Texas Details Home Purchase. Another great site is Questions Answered - Texas Reverse Mortgage. If you aren't in Texas, don't sweat it. The info is good everywhere.

Stop Foreclosure - The Loss Mitigation Alternative

By Tomasheus Privetsky

If you find yourself facing foreclosure, there are probably several contributing factors, which have led to your situation. You might have lost your job, suffered an illness (and its accompanying medical bills) or been through a divorce. However you get here, one thing is certain; the bills are piling up and it is getting harder and harder to make ends meet. Even worse is the situation of having an adjustable rate mortgage whose interest rate has skyrocketed, making your payments much larger.

While you're trying to think of how to stop foreclosure on your home, you're getting near constant calls, letters and knocks on your door from foreclosure investors.

These foreclosure investors specialize in chasing homeowners just like you who are close to losing their homes. They're interested in buying your home and profiting from it, because they believe you must sell the home.

Should you sell to an investor to avoid being foreclosed on? Maybe, but certainly not as your first option. And only after you exhausted other foreclosure prevention means such as rearranging your loan.

Rearrange Your Loan To Stop Foreclosure

Once you missed a few payments, your credit report will reflect them, and your credit score will drop dramatically. This low credit score will likely prevent you from being able to get a new loan to refinance your current loan in default.

Every mortgage lender in the country has a Loss Mitigation department established with the sole purpose of reducing lender's losses on loans. They work to put homeowners who fell behind on payments on a repayment plan to bring your loan out of default. The best thing about Loss Mitigation alternative is, unlike a new loan, it doesn't require a credit approval.

If You Do Work Out a Repayment Plan, Beware of the Challenges

One of the biggest problems with these loss mitigation departments is they don't employ enough people to handle unusually high rates of foreclosure the country is experiencing right now. In fact, these plans are often difficult to arrange due to the heavy workload, which these employees are faced with. Since loss mitigation departments have so little time available to work with each file, they will tend to offer repayment plans which don't give you enough time to catch up with your payments, and monthly payments which are larger than you can realistically afford.

With the difficult situation you are in, you may be tempted to take this repayment plan offered to stop foreclosure; however, this is generally just a short-term solution. Since the terms of the repayment plan are not a realistic fit for your budget, you will as likely or not be facing foreclosure again in a matter of months.

Watch Out When Hiring Workout Professionals To Stop Foreclosure

One of the easiest ways to get out of foreclosure by using the loss mitigation process is by getting a professional in the field to negotiate with the mortgage lender for you. There are companies who have extensive experience in this area and have negotiated thousands of repayment cases successfully for homeowners whose mortgages are in default. Some of these companies have strong working relationships with the loss mitigation departments of mortgage lenders all over the country.

These companies will look over your finances and help you come up with a repayment schedule, which is possible for you to meet; payments will be kept as low as possible to make it easier for you to make your payments. These companies have intimate knowledge of the programs offered by different lenders and can negotiate a better deal for you than you would be offered by the lender on your own. They may even be able to negotiate a lower interest rate on your mortgage, which will lower your payments.

Given your financial difficulties, you may think that hiring a professional service like this will be beyond your means. Thankfully, this is not the case. Most of these companies charge a flat fee, usually equivalent to a monthly mortgage payment. Since they can often negotiate a deferral on your next mortgage payment, their services often pay for themselves.

You May Consider Cutting Your Losses

If stopping foreclosure through loss mitigation isn't in your plans, then it's time to sell your home so you don't have a foreclosure record on your credit. If you have a lot of time before the foreclosure sale, then list your home for sale with a real estate agent. This way you will get more for your property. If you're out of time, now you may have to turn to investment companies that can buy quickly. Just make sure you're dealing with a company that has means and track record to perform and close the purchase fast.

About the Author:

As you can tell, there's more than one alternative to avoid foreclosure of your home. Visit our website to get a referral to a loss mitigation company that can help you avoid foreclosure.

Student Loans - Interest Rates, Now and Future

By William Blake

Variable vs Fixed

Not too many years ago interest rates on Stafford loans and other programs changed from fixed rate to variable rate. Then, as of July 1, 2006 they changed back to fixed again.

Some lenders make up for what they loose in interest rates by charging fees. In general 3% fees charged on a loan is the same as a point of interest. Therefore, if they keep to the restrictions on the interest rate yet charge you a loan origination fee or loan insurance then they recover what they are missing in interest payments right up front. Some lenders are willing to extend credit and waive the customary fees.

Rates and Interest Amounts

Though the interest rate changes can be modest, PLUS loans increased from 6.1% to 8.5%, for example. On, say, even as low as $16,000 borrowed, a 2.4% rate difference equals (approximately) a $400 difference in interest charges the first year alone.

For exact amounts, per month, run sample scenarios using a loan calculator, such as that at http://www.bankrate.com/brm/mortgage-calculator.asp

The Future

Financial advisors have a difficult time trying to determine where interest rates are going. It is a good guess at best. There is really no way to be certain how much your interest rate will vary over time. For students and their parents seeking student loans their only option is to base their choices on what the financial advisors are saying and hope for the best.

Follow The Leaders

You can visit Yahoo Finance or other financial websites to see what the experts are saying about interest rates. It is a difficult guess for them and an impossible guess for the average individual. Therefore the best bet is to stick with the experts and follow their lead.

Looking at the 30-year Treasury bill, for example, shows two things: what the government is offering to sell debt for projected out over 30 years, and what the buyers of that debt are willing to pay. As that rate varies, most other long-term rates, such as student loan rates, will vary similarly (though not always exactly).

About the Author:

Are debt consolidation non profit companies the best way to consolidate your debt? Not always. Get the full story at the Inside Debt Consolidation website at http://www.insidedebtconsolidation.com

Get Rid Of Bad Credit

By Mike Carbeck

Especially if you're trying to obtain credit, your credit rating is very important. If you have a negative remark on your credit report, work to remove it as soon as you can. If there is just one mistake on your credit report, your overall credit rating will be impacted, and this can make a huge difference in whether or not you're able to get a loan. Luckily, there are ways to remove a negative rating so that your credit score can rise.

First, get copies of all three credit reports, one from each of the major credit reporting bureaus. Then, carefully check all of the information contained in the reports. If you do spot an error, there is a process to get it removed. Here's how to get that negative entry removed so that your credit rating will improve.

The credit reporting companies offer an online form to help you through the process, but it's actually easier not to use this form. Just gather your supporting information to prove that their information is incorrect, and then write a letter to the credit bureau. If you have a receipt, a bill showing that it was paid, or a letter from the creditor to state that the bill has been settled, you should send copies of this information with your letter, as they can help your case.

Be sure that you send this letter through certified mail and request a return receipt. That way you can be sure that they received your information. Once they get your letter, they will review your credit report, and notify you of their decision. If they decide in your favor, get another copy of your credit report so you can make sure that it has been removed from your report.

If you have a low credit rating due to your own actions, there is no way to completely erase that history. However, you can take steps to build good credit, which will raise your score. It will take time and effort, but it can be done. First, pay down your debt, especially credit card debt, and make all of your payments on time.

Another way to increase your credit rating by getting rid of your outstanding debts is by using a debt consolidation program following some effective procedures. Effective procedures mentioned in debt consolidation guide such as the Debt Free in 3 are guaranteed to have produce real results. These programs offer a loan to pay off your old creditors. Then, you'll be making one payment a month, instead of multiple smaller payments to different companies. This is one way to show that you are taking steps to improve your credit rating through smart financial decisions.

To improve your credit rating, make sure that there are no errors in your credit report, and take care to reduce the impact of negative entries.

About the Author:

Find out for yourself why so many people are interested in Debt Free in 3. Visit our evergrowing library at http://www.debtmastering.com/debt-free-in-three.html.

Are You Trying To Become Involved With Real Estate Short Sales?

By Annabella Sherie

Are you looking for real estate short sales? With the way that the real estate market is going it seems that the opportunity for short sales is tremendous. However before you begin becoming involved with real estate short sales; you first have to understand the process.

What is the definition of a short sale? This is when the homeowner is in default on their loan and the bank does not want the property; so therefore they are willing to take a discounted price on the loan. Even though this sounds simple the truth is that going through the entire process can take several weeks to get the bank to accept the offer.

Before you even consider purchasing real estate short sales; the one thing you have to learn is how to find the great deals.

1. Newspaper Ads: It is best to place an ad in the Sunday paper that will allow more exposure for your ad. If someone sees your ad and they are having troubles making their mortgage payments then this will provide them with the option of contacting you for assistance.

2. Public Records: Your local court house has a section in it that provides public records of homes that are in default. This will provide you with valuable information that will help you assist someone who is facing financial troubles.

3. Mortgage Agents: These people have access to records that you and I will have difficulty finding. They will be able to find the history of the loan on the property that you are considering purchasing from the bank.

Whether you are looking to become involved with real estate short sales as an investor or just looking to purchase your first home; then you definitely can be finding some great deals. The best part is that when you do finally find your home; it may have built in equity that will provide you with a great cushion.

Beginning real estate investors tend to believe that they will be able to quit their day job with the first deal. However before you begin jumping in trying to help someone from losing their home; you may want to visit our site. We will provide you with valuable information that will reveal the truth about how to begin your investing career or how to save your current home.

About the Author:

Real Estate Short Sales Can Help You Get A Great Deal! Discover How To Get The Bank To Accept A Mortgage Short Sale!

The Essentials of First Time Home Mortgage Loan Borrower

By Matthew Sanz

It can be both exciting and perplexing when it comes to buying your first home. Get yourself to know the basics of home mortgage loans and be on your way to finding the perfect place.

What is a mortgage?

Home loan mortgage is the loan you make to pay off your home. If you are a first time home mortgage loan borrower, you may be asked to deposit a down payment and pay for the rest (i.e. monthly) through a mortgage loan. Establishments that can offer mortgages are mortgage specialists, building societies and banks.

What are the types of mortgage?

-Repayment mortgage type - monthly payments are made within an agreed term until loan and interest are paid off.

- Interest-only mortgage - monthly payments are made for a period of time as agreed in the contract, except payments cover only the loan's interest within the initial term. Afterwards, you are asked to make interest payments in full every month.

-Fixed-rate mortgage type - requires you to pay for a fixed interest rate over the whole term. Interest rates do not change and therefore offers a feeling of certainty for most borrowers.

-The adjustable rate mortgage - has rates that adjust after an initial term containing a fixed rate. Rates could adjust depending on the rise and fall of other economic rates. This could sound daunting for first time home mortgage loan borrowers, but those who want a lower initial rate can benefit from this type of mortgage.

What are the requirements?

1. Good credit report:

The credit report will determine whether the lender can approve your loan application or not, or to increase the interest rates for your loan or not. Lenders especially want to make sure that a first time home mortgage loan borrower has the ability and willingness to make his or her payments.

2. Insurance:

Insurance can be used to pay off your mortgage if you have just been in an accident, lost your job or become sick. You might be required to use life insurance to pay off your mortgage should death occur. What are some tips I can use before purchasing property?

- Improve your credit report - Avoid applying for more credit and pay on time. - Review and correct credit information - Contact the credit bureau to correct inaccuracies - Get the best program - Choose a plan that is most suitable for your situation. - Research - Jot down your price range and find out how much you can borrow. - Do it online - Using the Internet could save you more time and money. Lenders now offer mortgage calculators online that you can use to predict which mortgage program is most suitable for you. - Choose the best mortgage specialist - Determine if the specialist works in a company that is likely to stay in business whenever rates fluctuate. - Ask for advice - Look for recommendations so you are familiar with what kind of mortgage plan you are getting into.

This is only a guide and should not be used in legal matters.

About the Author:

Discover more data as a first time home mortgage loan borrower. Discover an online home equity mortgage calculator now.

Real Estate Investing in Today's Shifting Market

By Bob Brabb

The sad state of our economy and the declining values in real estate has created an opportunity for home buyers and real estate investors.

Are you ready to take action and maximize the situation? Here are some tips for investing in today's market:

Where are the Deals?

Taking a closer look at the current economic situation, I call it the "Perfect Storm" Over supply of bank owned and foreclosed properties Troubled economy and unemployment Lower interest rates than we've seen in years

We are in a buyer's market! There are many great deals available on real estate in all types of neighborhoods across the nation. You would be surprised at how low some of the asking prices are for houses.

How do I Begin?

How does one leverage their funds and utilize their time if they are working a full time job and struggling to make ends meet? The recommended solution that has proven successful over and over again in real estate investing is to work with a professional. Find a real estate investor or other real estate professional, who has knowledge in the market and can help you find great deals. Teaming up with a real estate professional that provides a great service will ensure your success in real estate investing.

Providing a great real estate service generates more business through client referrals; referrals are a key to an investor's success.

An experienced realtor understands the current real estate market; utilizing their services can save you a lot of time while quickly recognizing new opportunities and generating big profits. Getting started with investing on your own can pose financial and liability risks.

There are a lot of real estate services that are provided on-line; many real estate transactions can be completed via internet. Your real estate partner should have all the tools and understand the latest technology so you can become a professional at finding the best deals available. A savvy realtor knows how to be first in line to see new great deals.

Closing the deal

Closing the deal can be a challenging experience. A real estate professional must always remain 'on top of things' to successfully get to the closing table and finalize the transaction. A real estate professional will know the best way to structure the deal for a smooth transaction whether you're working with foreclosed homes, HUD properties, wholesale investing or one involving a short sale.

Choosing a Real Estate Professional

Talk with Investors in your area, join local REIA clubs and attend meetings hosted by Realtor organizations to find the Real Estate Professional that will support your real estate business. A lot of real estate investors like to work in partnerships; many like to mentor new investors too.

The market is ripe for real estate investing; supply is quite high and few are buying; therefore, the prices are great. Work with an experienced real estate professional who can act as a mentor if you are new to investing. Even experienced real estate investors benefit from forming partnerships.

About the Author:

This article was written by Bob Brabb a Real Estate Investor with experience in bank foreclosures, pre-bank foreclosures, short sales, wholesale transactions and many other investing strategies that work well in our constantly changing market. The Brabb Team uses all the latest technologies in market research, and business strategies to exceed their clients' expectations.

Should You Go For A Mortgage Refinance?

By Ned Dagostino

Mortgage refinance is an option most house owners look at from time to time. The big question they ask themselves is: Should I? Well, that depends on the particulars of the case. Generally people go in for mortgage refinance either to save money on the interest they pay, or to consolidate sundry debts. The crucial factors that merit consideration when deciding the 'Should I?' question are noted below for your information.

Maybe you have a number of small monthly repayments and these are becoming increasingly difficult to manage. You can refinance the mortgage and get a loan large enough to pay off all the small debts at once. You can then concentrate on paying a single monthly repayment. This makes things more manageable.

You may have gone in for a variable rate mortgage plan when the interest rates were low. The interest rate in this plan is linked to the market rate. If there is a rising trend in the market rate which is not likely to abate, you may well change your mortgage to a fixed-rate plan in which the interest rate is equal to or less than the current rate.

Don't get carried away with the idea that refinancing is advisable for all situations, or that it will benefit you at all. There are many situations when refinancing can cost you heavily.

Refinancing is not as sweet as it looks. There are a number of fees that have to be paid for refinancing the mortgage which are not disclosed to you. It's only after you have gone too far into the deal to turn back that you are made aware of these hidden charges. Be persistent in finding out all the nitty-gritty details about these hidden fees from people who have already taken a refinance. Deduct these fees from the total savings you expect to make. If the money saved is reduced to an insignificant amount, you might as well stay with your current plan.

Refinancing your mortgage is a serious financial decision. Therefore you should perform a due diligence market survey before taking up a refinance option. Find out the various plans and schemes offered by various companies in your locality and online. Carefully weigh the pros and cons of these schemes and tabulate your results for easy analysis.

Find out all the penalties and fees that refinancing companies may extract from you upfront. For example, there is an origination fee or points, which is taken before the refinance plan becomes operational. There might be a plan where the interest rate is slightly higher but you don't have to pay origination fee. This may turn out to be better for you.

Refinancing will be beneficial for you if you are able to save more than you spend on all the fees and penalties involved in refinancing. One very important factor that you must consider is whether there are chances of your moving out before the refinanced mortgage expires. If there are good chances of your moving out soon, then, far from saving you money, the refinance is going to cost you a packet!

Refinancing your mortgage is a good way to save money by opting for a lower interest rate regimen. It is also a good way of consolidating your debts. But that is not be construed as a clean chit for every situation. Refinance has to be debated on a case by case basis according to the particulars of the situation. So what works for Bob may not work for Bill. The most important thing is to perform an exhaustive market survey before going in for refinance. Be very careful in computing the refinancing costs. Ask other people who have taken this route about their experiences and seek their advice. Be wary of hidden charges. These surprise charges may make the difference between saving $10,000 and paying out $500!

About the Author:

There are many other refinancing choices available to you besides a basic house refinance. You can refinance almost any loan including your car, trailer, or even a manufactured home refinance can put extra cash in your wallet. Go to www.Home-Mortgate-Refinancing-Loan.com to learn more.