Juggling With Loans And Balancing Personal Finances Of Life

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In the modern day world, where there is temptation at every corner, it is quite difficult to restrain yourself from splurging. Such splurging sprees can often lead to overspending and consecutively spending beyond your means. This leads to the requirement of loans and debts which sometimes in cases of uncontrolled desires lead to a vicious trap which is very tough to come out from. The repayment in some cases becomes difficult and another debt has to be taken and the vicious cycle follows. It can be a painful issue for the borrower as he goes through financial and emotional stress and can often find leading a daily routine life to be extremely imbalanced.

Different forms of debts

Debts can come in various forms. You can take an educational online installment loans for higher studies, credit cards are a form of everyday debt wherein we take loan from the bank for our daily purchases and repay that money in installments on monthly basis with the interest on the amount. There can be personal loans, meant for a moderate amount of money, business loans meant for start up of a business or the expansion of a business, residential loans meant for the purchase of a property and vehicle loans – for the purchase of a car or a bike. Besides these, there are other institutes who offer loans on mortgages and loans on the deposit of gold or other valuable items.

Management of Loan

The first thing to know about loans is avoid it. Do not take a loan unless there are dire circumstances, as the rate of interest charged is so high, that at the end of the loan period, quite a substantial amount of money is paid as the interest. In the case that you have to resort to loans, try and limit the number of loans. Do not be carried away by the luxuries of life and resort to multiple loans. Further, try and repay it as soon as you can, by paying extra to the monthly payment marked. If you are salaried, set aside the bonus that you get or the salary hike that you have received for the loan, unless you have an emergency.

Balancing life and Loans

If you have a loan in life, you have to be extremely cautious while spending, as the monthly amount of money allocated has to be paid under any circumstance. If you default for even a month, it can mar your financial record and you would face trouble in getting another loan in future.

Also, while taking a loan, be careful in looking over the details, as sometimes you may face that you are paying much more than what you were promised. So, go through the agreement very carefully and then agree to it. In case you don’t feel confident enough, consult a friend or best a lawyer who can point out the meaning of clauses. Therefore take loans only if you are in absolute need of it and even if you do, be confident that you can repay it.

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Option ARM loan- Whether to own a home or to dispose it!


Current Mortgage Rates & Market Data

An Option ARM loan is the type of mortgage loan in which the borrowers can choose their payment options. And the interest rates are adjustable. You are free to opt for either a fully amortizing payment, a minimum payment or payments towards interest amount according to your budget for a particular month. The option ARM loans are referred to as ‘Payment option ARM’, ‘Cash-flow loans’, ‘Pick a payment loans’ or ‘1% mortgage loans’. The loans can be used only if you need flexibility in the terms and payments.

It is not however, advisable to take this loan for the purpose of purchasing a more expensive home than you could afford. While the flexibility of the loans is quite impressive, option ARM loans can be very risky. If you are not able to make bigger payments, you will not be able to build equity in your home. It is natural for anyone to choose smaller payment. You will owe more on the house by the end of the month than at the beginning of the month. This will also extend the period of repayment. It is not possible to keep paying small amounts forever. You are required to make more towards the personal loans with bad credit amount gradually to settle the loan completely.

The risks associated with the offer

Due to negative amortization, you owe more on your home, say 120% or so. Every 5 years or so, your loan will be recast and you can see that the guaranteed minimum payment gets increased sharply. You are sure to be in trouble if you are not able to manage the increased amount of monthly payments. You will end up selling the house to settle the debts. By this time, your loan balance would have been greater than the value of the home due to negative amortization. You will be in a position to write a check to completely settle the debts due to option ARM loan.

In some of the option ARM loans, there is a cap on the rate of interest to set some limit to keep it from getting high. By this plan, the borrowers will be certain that their payment will not go beyond certain level. There are options to pay the monthly payment and pay extra amount for covering the interest to avoid negative amortization. The personal loans no credit check is preferred by many due to the low monthly payments. Many homeowners feel that with lower monthly payment, they can make additional interest payments whenever possible, to minimize the balance of the loan. This can be considered good choice if the homeowners are confident of making more payments in future to settle the loan.

If it is not possible to afford the increased monthly payment amount as necessary, there is the risk of losing the home. The owners who occupy their homes benefit from option ARM loans as the value of the home is almost always appreciating. Those who do not have regular fixed income also benefit from this loan that has payment options associated with the loans. Whether the ‘option ARM loan’ will be advantageous to you or not, can be understood by making calculations as to your needs, income and affordability to make repayments as agreed. A discussion with financial experts will help you make your decision and enjoy the benefits in option ARM loans.

Houses Bought As-Is for ALL CASH! Fast Closings!

Chicago’s Urban Economic Development: An Incremental Work in Progress



Houses Bought As-Is for ALL CASH! Fast Closings!

In recent weeks we have been rather busy writing a variety of articles for paying customers in accordance with established deadlines. Unfortunately, we were unable to update REAMS as often as it would otherwise have been. However, we’d like to share some of the other researched content with you. We hope you find some interest and/or enjoyment in it. Here’s today’s Chicago-specific post:

In this age of dwindled state and federal funding, the Chicago Stockyards have become a national model for urban economic development. – Quote!

The portion of this quote which, regrettably is true more often than not, is, “…this age of dwindled state and federal funding…”, and it succinctly depicts economic conditions in many of our nation’s poorest, low, and moderate-income neighborhoods. The quote was extracted from a December 1999 article in the GOVERNMENT FINANCE REVIEW titled, Urban Revitalization and Tax Increment Financing in Chicago.

The “GOVERNMENT” is the City of Chicago’s Department of Planning and Development; and the neighborhoods are, unfortunately, most often under-served by those empowered to bring about positive change in the form of revitalized development of housing, schools and businesses, as well as more jobs, positive growth and the prospect for continued prosperity.

However, as stated in the quote, the City of Chicago has created what has become a national model for urban economic development, and should be utilized in many other urban communities in need of such development. The national model referred to is Tax Increment Financing (TIF), a program which the state of Illinois first enacted in 1977.

TIF was considered an important community development tool for attracting the development that will generate new taxes. Unfortunately it took 12 years for the program to be embraced by city officials and fully utilized. This acceptance and utilization of the Tax Increment Program occurred when Mayor Richard M. Daley took office in 1989.

Tax increment financing is actually a technique for financing a capital project from the stream of revenue generated by that project. The “…advantage of using TIF over federal economic development money is that it allows for more project flexibility and local control”, and it was this program that provided the funding mechanism to clean up the stockyards and prepare land for redevelopment.

The Stockyards Industrial Park is now home to modern industrial facilities for companies like Culinary Foods, Inc., Luster Products, and OSI Industries, while a new retail center has brought stores and services to a once under-served area.

As is often the case with so many city and community initiatives, TIF was enacted after a drastic reduction of federal economic development funds. A similar effort for such an economic development is WECAN (Woodlawn East Community And Neighbors Inc.) which was founded by Mattie C. Butler, a 40-year Woodlawn resident and sister of Hall of Fame R&B singer/current Cook County Commissioner Jerry Butler.

WECAN quickly became a neighborhood and citywide advocate for rescuing at-risk and abandoned buildings, preserving an estimated 5000 units of housing in Woodlawn since its founding. Many of its programs – Abandoned Property Program, Vintage Homes For Chicago and Step-Up Housing – have become citywide models.


Along with TIF and WECAN, there is a Federal Housing Administration (FHA) program created specifically for the rehabilitation of one-to-four family residential properties, as well as mixed-use (consisting of residential and retail space in proportions set forth by the program) buildings. This program is known as HUD’s Section 203 (k) rehabilitation mortgage, which is administered by FHFA and insured by the FHA.

The 203k rehab loan permits a home buyer to finance a minimum of Five Thousand Dollars ($5,000) in the mortgage loan for completion of any repairs that are needed on the home s/he is purchasing, unless that home is a year old or less. Under the 203k program loans are insured up to approximately 96.5 percent of the lesser of appraised value before rehabilitation plus rehabilitation costs or 110 percent of appraised value after rehabilitation.

A 203k loan can be used to (1) finance rehabilitation of an existing property; (2) finance rehabilitation and refinancing of the outstanding indebtedness of a property; and (3) finance purchase and rehabilitation of a property. An eligible rehabilitation loan must involve a principal obligation not exceeding the amount allowed under Section 203(b) home mortgage insurance” (the standard FHA-insured residential mortgage program).

Due to recent changes in these programs please refer to HUD’s website at the link below for updated information: More about 203k financing or simply www.hud.gov

The programs mentioned in this article are by no means all there is to remedy some of the blight and dilapidation in many of Chicago’s neighborhoods and, indeed, neighborhoods all across this nation. There are other programs, including the Community Reinvestment Act (CRA), which should be utilized for the maximum benefit to every community in which commercial banks conduct business. Please learn more about CRA here: More Wiki CRA info

TIF was developed in Chicago and – as one of the most effective programs ever developed for the purpose it serves – has come of age in that city, although other cities have been encouraged to follow Chicago’s example.

A statistic which may best illuminate the success of Chicago’s TIF program is the calculation of private return leveraged from public investment. For every one dollar of public funds spent on TIF projects, the private sector has invested almost five and a half dollars. By the end of 1998, Chicago had invested a cumulative $526 million in TIF funds and benefited from $2.82 billion in private investment – Quote

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