paying back in full would be a loan from a family member. A debt I would have no problem not paying back is a government loan to a company to keep that company open. An example of this type of debt is GM. And finally a type of debt I don’t know whether or not I would pay back is a bank loan on a foreclosed home. In these cases what matter is who made the loan, and whether or not I was the person who agreed…
Personal Finance: Home v. Rent There are many considerations when deciding whether to rent or to own. Categories like one's financial situation, one's stage of life and one's desire for mobility should be primary factors. I may be biased based on the fact that I have never rented only owned. I started my current, and only job right out of high school and have been there ever since. I lived, at the time in a town of only 300 people renting had minimal offerings so buying a prefabricated home was…
organization, you are entitled to special loan forgiveness opportunities. As long as you work at least 30 hours a week and make 120 payments, your debt can be forgiven. The borrower does not need to make consecutive payments either, simply 120 payments over the life of the loan. A program such as this will entice more individuals to take on extra debt and find employment in the public sector instead of being a smart and cautious borrower. In the case of loan forgiveness, at first glance,…
If you have only equity financing (which either uses funds injected into the business or equity raised through share offerings), you won’t benefit from any of the tax deductions that debt financing provides, and if you only have debt financing, your financial leverage will be greater but your overall profits…
Short-Term Financial Goals Preparing the personal financial plan, personal financial goals, and balance sheet and income statements felt like a daunting task. Primarily because finances were something that I always thought about, but I did not want to know the “real” truth regarding my financial health. The second principle of personal finance, “Nothing Happens Without a Plan” fits well in my situation because I persistently avoided viewing the entire picture when it came to our family’s…
transaction. This fraudulently improved Greece 's apparent financial health by about 2%, allowing them to just barely qualify for entry to the Euro. For their help, Goldman Sachs was paid almost $800 million in fees on top of repayment of their short-term loan that Greece covered through the sale of bonds. Right on the heels of Greece’s entry into the Euro came the 2001 market crash that followed the 9/11 attacks. Greece immediately faced insolvency because the world bond market had…
nearly fifteen million Americanhome and propertyowners lost their homes to foreclosure, according to stats listed by Bloomberg in 2009. In order torebuild and/or rebound after a financial loss, like what took place in 2008, takes some time and a lot of attention to the detail of the requirements needed to bounce back. There may be a lot guilt or even loss of confidence because of losing your home. You will need to at least rent a home or apartment. After moving beyond feelings of guilt or…
Both refinance home mortgage loan and home equity loan allows cashing out the equity in a property. However, they are different type of loans, serving different needs. Refinance mortgage is used to replace the existing mortgage with a new and improved loan. The purpose of refinance mortgage loan is mainly to lower the interest rates and the monthly payments on a mortgage. During the process of mortgage switch with refinance, providing there is equity in the property, some cash may be taken out…
Piggyback Loan is a term used in home financing and mortgages. It 's a financing option that allows the borrower to purchase property using two different lenders. When applying for a piggyback loan the lender usually offers three different options: the 80-20 loan, the 80-15-5 loan and the 80-10-10 loan. All three financing options allow you to finance 80% of the home 's purchase price through the first lender and a portion or the rest through a second lender. With the 80-20 loan the remaining…
to cash out refinance loans. Texas cash out loans, often referred to as 50(a)(6) loans or home equity loans are only permitted in certain situations. If basic requirements aren't met also, the loan is illegal and therefore won't be allowed to go through. For this reason, individuals need to understand the requirements of this type of loan prior to proceeding. Maximum Loan Limits When obtaining cash out loans in Texas, borrowers find they are limited to 80 percent of the loan-to-value on a…