Choosing the Best Lender for an FHA Streamline Refinance

Finding the ideal FHA mortgage lender is not as effortless as it sounds. First off, you need to narrow down your choices to come up with an approved list of lenders from the Federal Housing Administration because not every lender offers these kinds of loans. Also, check their current fha streamline rates and the amount of money you stand to save by opting for an FHA Streamline refinance.

In this post, we discuss a few tips that will help you search for the ideal FHA mortgage lender.

1. Know your credit score

It is crucial to note that FHA seeks borrowers with a credit score of at least 500. However, if you desire to get an FHA loan but have a down payment of 3.5%, you will require a credit score of 580 and above.

For FHA Streamline Refinance, appraisals are unnecessary. Your Loan-to-Value-Ratio is calculated based on the last appraised value when you received the current loan.

In some instances, an appraisal, however, may be required.

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Also, to assess the prevailing mortgage rates, you need to request the most current rate quote by completing a rate quote request from the lender. Interestingly, you will discover that they have the same rates or even lower compared to other FHA programs.

2. Shop around for more than one FHA lender

FHA mortgage rates may be all over the place, and for this reason, you need to do thorough research to ensure that you settle or the best mortgage rates. Some lenders may offer lenient terms compared to others. Or may qualify you for an FHA mortgage loan faster compared to others.

Remember, lenders often price their mortgage loans vis-à-vis the prevailing marketing conditions. And also mark up their interest rates as a result of profit targets and business costs.

Figure out the difference between lender fees and FHA mortgage insurance premiums

To cater to the loan default costs, FHA-backed loans need mortgage insurance. FHA mortgage insurance is similar. You will be required to pay uniform premiums at lender one as you will at credit union two. Lender fees are dissimilar from lender to lender. That makes it effortless to compare the fees and terms on offer for each lender.

3. Look out for the APR

Another way to figure out how much fees is required is to compare the annual percentage rates of varying lenders. They will always make money by charging you different fees such as application fees, processing, and origination fees. And or through building their profits into the interest rates you pay.

That is why you need to factor in your payment interest rates plus the fees included APR. You may use the calculator provided on various lender sites to help you assess the difference between annual percentage rates and interest rates.

4. Customer service

When choosing the best lender for an FHA streamline refinance, you want to ensure that they exhibit exceptional customer service. Choose a lender who responds to phone calls, messages, emails, and other communication channels on time or reaches out to you as soon as they can.

You want to ensure that the staff are polite and show concern for their clients.

5. Stellar reviews

Before settling for a lender for an FHA streamline refinance, you need to ensure that they have a good name. You can find out how clients perceive their services by checking their comments on social media platforms, the company's website, Google, and other equally helpful avenues.

The ideal FHA streamline refinance lender offers exceptional services to their clients, alongside reasonable interest rates. You want to steer away from FHA streamlines that have an unpleasant history. And those with bad reviews on their platforms.

You may also consider recommendations from trusted family members, relatives, and friends of FHA streamline refinance lenders they have worked with before. And would vouch for their services.

You also want to ensure that you are working with award-winning experts whose primary aim is to provide their customers with the best rate quotes.

4 Easy Ways to Get Started With Investing

If you are thinking about investing but concerned about risks, here are some easy ways to start. You don't have to put thousands of dollars into an investment account or spend hours each week tracking your funds. Many people start in a low-key way as they begin to learn about the wisest and safest ways to invest.

Start Small

For pennies a day, you can invest in platforms like Robinhood or Acorn that let you spend small amounts to buy portions of stock shares. 

One strategy is to sign up with a micro-investment service that enables you to invest small amounts that gain value over time. Some programs will round up your purchases to the nearest dollar and invest that amount to grow your account. 

Many investment services are automated, so you can do most of the trades instead of paying others to invest for you.

Keep It Simple

Enroll in an investment program that withdraws a certain amount from each paycheck automatically. You will never miss the deducted sum, especially if it is relatively small, such as $10 to $100. 

In a safe, low-risk account, your funds will increase over time. All you have to do is check on the account periodically to ensure it is moving in the right direction without errors. 

You may want to open an account with low or no service fees.

Talk to a Stockbroker

If you prefer to start with a larger investment sum like $500 to $1,000 or more, you might want to consult a stockbroker for advice. You can discuss the level of risk you are most comfortable with, such as low, medium, or high risk. 

You don't have to invest funds through an investment firm, but you can discuss the basics of getting started with an experienced broker who can answer questions to help you get started.

Consider Crypto Currency

An investment that has exploded more than once in recent years is crypto currency. Digital funds, while still now widely used for everyday financial transactions, are being increasingly integrated into global economies. 

Some investors who bought sizable amounts of the bitcoin currency when it first started a little over ten years ago are now millionaires. Check out the trading price on shares of available crypto currencies, and you may want to buy BTC crypto in a small amount to see how it fares in the next couple of years.

Successful investors often start with small and simple methods. Explore these options further to decide if you are ready to give investing a try.

How to Plan out Your Estate Before You Die

Some people never consider the possibility of creating an estate plan because they believe that it’s particularly difficult. In all actuality, there are simple things you can do to get started with building an estate plan as soon as today. 

The truth of the matter is estate planning does not need to be difficult, especially if you follow this 5 step checklist to prepare your documents.

Advance Directive

An advance directive typically referred to as a living will, is a document that provides guidelines as to what medical personnel are authorized to do if you become incapacitated in the future as to which you cannot tell them what your preferences are. 

You can include details such as whether they should utilize life-sustaining measures like breathing tube and feeding.

Life Insurance Policy

If you own a home or if you have children, it’s especially important that you get a life insurance policy as a part of your estate planning efforts. 

A life insurance policy can help to cover estate taxes and pay large amounts of debt, in the event that you pass away and the aforementioned expenses get passed on to your spouse or family members, such as mortgage payments for example.

Power of Attorney

A power of attorney (POA), gives another individual the legal authority to make decisions on your behalf. Most experts recommend that you should establish a power of attorney for your finances and your health as well. 

While this can be the same person, it doesn’t have to be and you can choose to give an estate planning attorney, power of attorney over your finances or health care.

Create a Will

Creating a last will and testament is one of the most basic and critical aspects of estate planning. If you pass away without a will, this enables the government to redistribute your assets according to state law. 

The key thing to consider when creating your will is to determine how many assets you possess and the people that you would like to get them.

Digital Assets

In today’s world, most people have digital assets in digital wallets like Paypal, Bitcoin, Monero, and more. When it comes to creating an estate plan it’s important that you don’t forget about your digital assets. 

As such, it would be a good idea for you to list all the digital assets you possess along with passwords and usernames, as to which you can give someone you trust so that they can access your accounts.

As you can see, the process of establishing an estate plan doesn’t have to be difficult. The most important thing to remember is that you should be aware that any asset that you fail to include in your estate plan, will be surrendered to the government. 

In addition to that, take a look at any debts you pay possess or things your children may need if you pass away, and consider these factors when it comes to planning your estate accordingly.

What to Look For When Comparing Car Insurance Costs

Whether you are in the market for new car insurance or if you just purchased a new car and need car insurance coverage, there are certain things to look for when comparing car insurance quotes. 

It’s also important for you to get quotes when your policy is up for renewal to see if you can save money. Here are the necessary steps to compare car insurance costs to potentially save you money.

Compare Full Coverage and Minimum Coverage

Your car insurance price is going to vary depending on if you want full coverage or minimum coverage. The minimum coverage criteria vary by state. 

Drivers of age 25 or younger tend to get high insurance rates compared to older drivers as they do not have the same experience as older drivers and tend to get into more accidents. Comparing prices against insurance companies could also save you more. 

The minimum coverage required in New Hampshire is 25/50/25 whereas in California it is 15/25/15 coverage. An example of full coverage in New Hampshire is $1,216 compared to minimum coverage at $416.

Drivers With Poor Credit

Drivers with poor credit may have their premiums at a significantly higher rate than drivers with good credit. The states with the highest insurance rate with credit factors are Massachusetts, Michigan, and California. 

Depending on the insurance agency you go through, you could spend significantly more such as $497 a year compared to drivers with good credit. Allstate had the highest rate of premiums for individuals with poor credit. The average price of a policy for poor credit is $3,437 compared to those with good credit of $2,368.

Do You Have an Accident or Ticket?

If you have had an accident, speeding ticket, or driving while intoxicated infraction, your rates can skyrocket. Auto insurance companies tend to consider you a high risk after these infractions which is why the rates are so high. 

Shopping around for car insurance quotes in one, three and five-year intervals will allow you to continue to get the lowest rates.

Compare Quotes

Comparing quotes for cheap car insurance is simple. All you need is your personal information such as the vehicle make, model, miles, and vehicle identification number (VIN). 

You will need to provide your driving history to include any claims, violations, or tickets in the past five years. Providing your current or previous auto insurance to the new insurer will help them compare coverage and pull your information from the past insurance company. 

Further, providing information about the people in your home will help the new insurer determine if they need to be covered.

It’s best to randomly complete quotes with other insurance companies to see if you can get a cheaper rate. Finding a cheaper rate with similar coverage will help you save money for other necessities. 

Even if your car is completely paid off, it’s beneficial to get liability insurance to protect you from the worst-case scenario such as an at-fault accident. This will help you be covered in the event you hit another motorist that is uninsured.

Buying a Home Soon? How to Simplify the Process

There’s no doubt about it; purchasing a home for the very first time can be an exciting time in many people’s lives. The prospect of starting anew can be a welcome change for many families. 

However, if you’re new to the home-buying process, then you may notice that excitement lower a little as you move forward through the process. The reality is that buying a home can be both complicated and frustrating. Thus the following includes a few things you can do to begin making the process that much easier.

Start Getting Your Documents in Order

This may not be the most exciting part of the home buying experience, but it is perhaps the most important. This is because when you start looking for a home loan, you will be asked to present a number of documents to your lender. 

This includes things such as multiple bank statements, pay stubs, and tax returns, to name a few. Having these documents at the ready can dramatically decrease the time required for you to obtain a loan.

Choose the Right Real Estate Agent

When it comes to the home buying process, who you choose as your real estate agent will determine the speed at which your offers and other paperwork are completed. That is why it is critical that you thoroughly research your real estate agents. 

You want to look for an agent who is understanding of your situation, easily reachable, and knowledgeable of your area’s current real estate market.

Choose a Fixed Rate Mortgage

One of the most critical parts when choosing the type of mortgage you want to obtain is how much you’re going to pay in interest per month. 

Trying to negotiate a lower interest rate with your lender can make the process that much more complicated. That is why it is highly recommended to choose a fixed-rate mortgage. 

A fixed rate mortgage, like that available from companies like Right Trac Financial, provides you with peace of mind that your mortgage amount is not going to drastically fluctuate if interest rates suddenly begin to spike.

Find the Right Home Inspector

No matter how pretty a home looks from the outside, you never know its actual condition until you have a home inspector come and check it out. Choosing the right home inspector can save you time and headaches from unexpected issues that you may come across months after you’ve closed the deal. 

You can find a good home inspector by speaking with tradespeople as they will often be working closely with many home inspectors within their community.

As you can see from the information above, there are several ways you can begin to simplify the home buying process. By implementing one at a time, you can potentially save yourself and your family from having to deal with any frustrating issues down the line.

Financial and Other Necessary Tips to Change Your Career in Your 50s

Do you think you are too old to change your career after turning 50?

You may have spent the first half of your life working to earn a living. But, now you’re ready to do what you’ve always wanted to do work for personal satisfaction.

It’s never too late to make a career change. We all need money to satisfy our needs and maintain our lifestyle. However, it is possible to earn money and find personal satisfaction in your work. 

Many people spend their lives working to support their families. Now is the time to focus more on job satisfaction and using your talent.

If you’re over 50 and considering a career change, you have a lot going for you.

One of the most significant advantages of changing your career after 50 is that you have a good network. By connecting with your network, you will have the opportunity to choose a job where you’ll find better job satisfaction.

According to the U.S. Bureau of Labor Statistics, women are more likely to change jobs than men.

An article published in learnhowtobecome.org states that since the average age of retirement is rising, many people over 50 are changing careers.

“People aged 50 and over are in a unique position to have plenty of workforce experience to bring to a new career, while still being able to obtain the knowledge they need to take on something new.”

Before making this major change, you should be sure to have your financial life in order first. This will create a smoother transition to your new life after 50. Here are a few financial and other tips for a midlife career change.

Have a fat financial cushion

Try to have six-figure savings account if you’re thinking of making a career change around your 50s. It will help you have a cushion to support your lifestyle if you face any financial issues.

It’s always good to have a savings account, but it’s better to put your money to work, making your savings more useful.

According to marketwatch.com, men earn about 127% more than what they made at the beginning of their careers, on average.

Do not hamper your retirement savings

The Internal Revenue Service (IRS) allows additional contributions to 401(k)s if you are 50 years or over. In 2021, you can add $6,500 as catch-up contributions for a total contribution of $26,000 to your 401(k).

So, make sure you can keep up with 401 (k) contributions during your transitionary period.

It’s a good idea to ask if you can rollover your 401(k) from a previous employer into an account with your new employer. Some companies may require a waiting period before allowing you to participate in the new plan. When changing jobs, you can also consider rolling your existing 401(k) to an IRA.

You also have the option of leaving your 401(k) with your previous employer, even if you switch jobs. Experts suggest that it’s a good idea depending on the amount in your old 401(k).

Reach out to your network

You likely have a solid network by now. It is time to use your contacts to grab your dream job.

Some companies and organizations prefer to recruit employees with a lot of experience by offering attractive packages and perks.
Update your skills

You may need to update your skills to make a career change in your 50s. This is easy to do by taking an online course while continuing your current job. You will learn the necessary skills and continue earning at the same time. It may take time and patience, but it’s a much safer route than losing your income in the meantime.

Do not switch only for money

Money should not be the only deciding factor in a career change. You need to consider placing importance on personal satisfaction, self-actualization, and your health. Anything that negatively impacts those areas of your life can have devastating long-term effects on your well-being.

Make plans to pay bills

When making a career change make sure there is a plan in place to pay your credit card and utility bills. Also, make plans to take care of your monthly mortgage or car payments, if any. Depending on the change, it could mean a decrease in income. So, be sure you know how everything will be taken care of.

It may be difficult if you have huge debts to pay off. You can get professional help with any excessive debts. Depending on your financial situation, choose consolidation or settlement to repay multiple debts through single monthly payments to become debt-free.

Build a good emergency fund

Build an emergency fund that can satisfy your basic needs for six months if you have a total loss of income. This will help you to pay and tackle any financial emergencies.

I will end this article by sharing Andrea’s story. She left her job at age 53 after she got a divorce. At first, she was worried about her expenses. So, she lived like a grad student and saved from the small alimony payment she received. 

She says that it would have helped her if she had an emergency fund. Andrea made sure to get a higher-paying job once she completed her graduation.

She says, “I also worked my networks and attended professional conferences during grad school, and that helped me to become employed immediately after I graduated. I’m much happier now.”