I have always thought that a home equity line is the same as a home equity loan. I was wrong. There are similarities between these two, as well as differences.
A home equity line of credit is also called HELOC or a line. A Home equity loan is called HEL or a loan. They are both designed to enable the home owners to borrow against the value of their homes.
HELOC is like a personal credit card. You can borrow as much as you want at anytime, up to a predetermined credit limit. You are required to make monthly minimum payments. You have the flexibility to pay off your balance anytime you want. HEL is a loan. You get the lump sum up front, up to the limit that is predetermined. Afterwards, a fixed monthly payment is required until the balance is completely paid off.
Generally speaking, the HELOC and HEL have a much lower interest rate compared to your credit cards or other loans. It is also relatively safe since it is secured by your property. The interest you pay on those is also tax deductible.
HELOC usually doesn’t have any closing cost. Its interest rate usually starts out lower than HEL, but it fluctuates with the prime rate. It is also relatively riskier. However, it does give you the option to take money out whenever you need. Vice versa, HEL has a closing cost. It offers you fixed interest rate, as well as the adjustable rate.
It depends on your own situation and flexibility. HELOC and HEL should be considered depending on the individuals. If would you like to find more information on the subject, you can visit the following websites.
http://realestate.yahoo.com/loans/guides/your_equity_options.html;_ylt=Ai5JitHP29yMV4UajsiRltyavYl4
http://realestate.yahoo.com/Georgia/Marietta/loans;_ylt=Auq6sNrnw4NLi.r22EZboZqTvYl4
Saturday, February 23, 2008
Bad Economic Strategy
I was reading the news earlier today. The news actually stood out and surprised me—more and more people are tapping into their 401K plan to make their monthly payment.
While groceries and utility bills are getting more expensive, many borrowers are having a hard time to make their SUV, mortgage, and credit card payments. Even though the interest rate has been cut a few times last month, the banks are tightening up their standard for loan borrowers. Many credit card companies, such as American Express, have already reduced their consumers’ credit limit.
Many middle income class Americans have their credit cards maxed out. They have mortgages that are not affordable. They also drive large SUVs or luxury cars that they can only lease. The bad financial situation has pushed many Americans to the edge. People are withdrawing their retirement money from their 401K plan. They are borrowing loans every month from their retirement savings. A 401K plan allows the contributors to take out loans up to $50,000 or 50% of the total investment, whichever is less.
For many 401K contributors, this is a very bad plan. People who can repay their loan back in a fixed period might not suffer from the penalty. People who eventually claim default will be in big trouble. Even if you can pay back your loan, you will earn less on your contribution. Besides that, many plans would not allow you to contribute until you pay off your balance.
What a terrible idea to withdraw from personal retirement savings. We are lowering our future living standard because we are buying luxury goods we can’t afford. Borrowing money is like a rolling a snowball. The more you add to it, the bigger the snowball is, and the worse the problem becomes.
http://biz.yahoo.com/ap/080219/borrowing_against_retirement.html?.v=2&.pf=retirement
http://www.msnbc.msn.com/id/23241606/
While groceries and utility bills are getting more expensive, many borrowers are having a hard time to make their SUV, mortgage, and credit card payments. Even though the interest rate has been cut a few times last month, the banks are tightening up their standard for loan borrowers. Many credit card companies, such as American Express, have already reduced their consumers’ credit limit.
Many middle income class Americans have their credit cards maxed out. They have mortgages that are not affordable. They also drive large SUVs or luxury cars that they can only lease. The bad financial situation has pushed many Americans to the edge. People are withdrawing their retirement money from their 401K plan. They are borrowing loans every month from their retirement savings. A 401K plan allows the contributors to take out loans up to $50,000 or 50% of the total investment, whichever is less.
For many 401K contributors, this is a very bad plan. People who can repay their loan back in a fixed period might not suffer from the penalty. People who eventually claim default will be in big trouble. Even if you can pay back your loan, you will earn less on your contribution. Besides that, many plans would not allow you to contribute until you pay off your balance.
What a terrible idea to withdraw from personal retirement savings. We are lowering our future living standard because we are buying luxury goods we can’t afford. Borrowing money is like a rolling a snowball. The more you add to it, the bigger the snowball is, and the worse the problem becomes.
http://biz.yahoo.com/ap/080219/borrowing_against_retirement.html?.v=2&.pf=retirement
http://www.msnbc.msn.com/id/23241606/
Papa Johns Pizza – the Best Business Idea
Everybody loves Papa Johns Pizza. I know it’s my favorite. Compared to Pizza Hut and Dominos, Papa Johns not only has the best pizza with the best ingredients, but also the best business infrastructure.
The founder John Schmatter, started Papa Johns in 1984. Nobody ever thought that a pizza delivery idea would become the number one business in America. John Schmatter redefined the pizza industry’s success. His stores are all over the world. The majority of his stores only do carry-out and delivery. Even though some of them might have a couple of dinning tables inside, they were not designed to be dine-in restaurants. Those tables and chairs are designed for people who order pizzas and decide to wait inside.
Because no fancy restaurant decor is required, Papa Johns’ stores have a relatively low cost. The stores are also smaller than other pizza restaurants. Papa Johns focus on the quality of each pizza they put into the oven. They invest a tremendous amount of money into their TV and coupon advertising. They also update their website constantly. They have special heart shaped pizzas for Valentines’ day, and new whole wheat crust pizza for healthier nutrition. They are constantly improving their pizzas.
With their great advertising strategy and different promotion code for different occasions, Papa Johns is able to stay on top and become American’s best pizza brand. Low cost and high revenue gives Papa Johns its greatest profit.
http://www.papajohns.com/pj_story/index.htm
http://ir.papajohns.com/phoenix.zhtml?c=115556&p=irol-IRHome
The founder John Schmatter, started Papa Johns in 1984. Nobody ever thought that a pizza delivery idea would become the number one business in America. John Schmatter redefined the pizza industry’s success. His stores are all over the world. The majority of his stores only do carry-out and delivery. Even though some of them might have a couple of dinning tables inside, they were not designed to be dine-in restaurants. Those tables and chairs are designed for people who order pizzas and decide to wait inside.
Because no fancy restaurant decor is required, Papa Johns’ stores have a relatively low cost. The stores are also smaller than other pizza restaurants. Papa Johns focus on the quality of each pizza they put into the oven. They invest a tremendous amount of money into their TV and coupon advertising. They also update their website constantly. They have special heart shaped pizzas for Valentines’ day, and new whole wheat crust pizza for healthier nutrition. They are constantly improving their pizzas.
With their great advertising strategy and different promotion code for different occasions, Papa Johns is able to stay on top and become American’s best pizza brand. Low cost and high revenue gives Papa Johns its greatest profit.
http://www.papajohns.com/pj_story/index.htm
http://ir.papajohns.com/phoenix.zhtml?c=115556&p=irol-IRHome
Saturday, February 16, 2008
Swap in the Real Estate Market.
The real estate market has hit its lowest point since 2007. This week, President Bush announced a new plan called “project lifeline” to help homeowners who face foreclosures. The program allows qualified homeowners to suspend proceedings for 30 days while providing them with rewriting and refinancing assistance. Still, this is not going to stimulate the market.
I also saw the news on Home Swaps. Just like the financial option swap, the real estate swaps work very similarly. Since houses are not selling, homeowners who need to relocate or move for any other reasons are seeking their own solution. Buyers and sellers can go to Craigslist.org or Onlinehousetrading.com and they can find their dream house online. The good news is no agent is involved. Both buyer and sellers can save up to 7% on commission. Once they decide to visit the house, they are recommended to use the same trading company. In this case, the traders can guarantee the deal goes through for both parties. If the two houses don’t have an equal value, the buyer can get another mortgage to make up the value.
It is not recommended to purchase a house that has a mortgage for more than what it is worth. Swaps are designed to trade between houses that are equal in value. It does sound like a good idea for people who need to relocate. It is still a relatively small market.
http://finance.yahoo.com/real-estate/article/104429/I'll-Buy-Your-House-If-You-Buy-Mine;_ylt=AicF5PSQLYNDbUpO0c8GxOVO7sMF
http://promo.realestate.yahoo.com/americas-free-falling-housing-markets.html
I also saw the news on Home Swaps. Just like the financial option swap, the real estate swaps work very similarly. Since houses are not selling, homeowners who need to relocate or move for any other reasons are seeking their own solution. Buyers and sellers can go to Craigslist.org or Onlinehousetrading.com and they can find their dream house online. The good news is no agent is involved. Both buyer and sellers can save up to 7% on commission. Once they decide to visit the house, they are recommended to use the same trading company. In this case, the traders can guarantee the deal goes through for both parties. If the two houses don’t have an equal value, the buyer can get another mortgage to make up the value.
It is not recommended to purchase a house that has a mortgage for more than what it is worth. Swaps are designed to trade between houses that are equal in value. It does sound like a good idea for people who need to relocate. It is still a relatively small market.
http://finance.yahoo.com/real-estate/article/104429/I'll-Buy-Your-House-If-You-Buy-Mine;_ylt=AicF5PSQLYNDbUpO0c8GxOVO7sMF
http://promo.realestate.yahoo.com/americas-free-falling-housing-markets.html
Are Universities at Risk?
We have all heard about the incident that occurred on Thursday, February 14th. Another school shooting resulted in the deaths of five students. The killer shot himself as well. I just can’t stop wondering what has happened to the campus security at our schools.
It seems like campus shootings are happening more frequently as time goes by. Last year, there was a shooting at Virginia Tech. Now, it is Northern Illinois University. It is stated that the gunman was a graduate from NIU and had recent classes in the spring of 2007. Till now, the police didn’t know what the motive was. There was no suicide note found to date. From what I understand, the gunman actually hid the guns in a guitar case.
What has happened to America? Why do the campus shootings keep happening? Are students at risk on school campuses? I hope there is a risk management strategy for campus security.
Personally, I don’t think any campus security measures currently in place can secure our schools. There is nobody checking the students before they enter the schools. Anyone can bring a gun into a school. I think all schools should put metal detectors at the school entrance of every school campus. Or, another way to do it is to let students use their campus ID to enter the public facilities on campus. I know we are already doing so in our libraries. However, it is not enough. We need to provide better security for students and faculty against school shootings in the future. People who are not enrolled at a school, or people who have already graduated, should not be able to have the access to the school campus.
I don’t know what else campus security can do to make us feel safer besides installing metal detectors at the entrances of schools. Bottom line, any type of weapon should not be brought to a school campus. Whatever we can do to secure our school campuses should be a top priority.
http://news.yahoo.com/s/ap/niu_shooting
http://cosmos.bcst.yahoo.com/up/player/popup/?rn=3906861&cl=6460498&ch=4226713&src=news
It seems like campus shootings are happening more frequently as time goes by. Last year, there was a shooting at Virginia Tech. Now, it is Northern Illinois University. It is stated that the gunman was a graduate from NIU and had recent classes in the spring of 2007. Till now, the police didn’t know what the motive was. There was no suicide note found to date. From what I understand, the gunman actually hid the guns in a guitar case.
What has happened to America? Why do the campus shootings keep happening? Are students at risk on school campuses? I hope there is a risk management strategy for campus security.
Personally, I don’t think any campus security measures currently in place can secure our schools. There is nobody checking the students before they enter the schools. Anyone can bring a gun into a school. I think all schools should put metal detectors at the school entrance of every school campus. Or, another way to do it is to let students use their campus ID to enter the public facilities on campus. I know we are already doing so in our libraries. However, it is not enough. We need to provide better security for students and faculty against school shootings in the future. People who are not enrolled at a school, or people who have already graduated, should not be able to have the access to the school campus.
I don’t know what else campus security can do to make us feel safer besides installing metal detectors at the entrances of schools. Bottom line, any type of weapon should not be brought to a school campus. Whatever we can do to secure our school campuses should be a top priority.
http://news.yahoo.com/s/ap/niu_shooting
http://cosmos.bcst.yahoo.com/up/player/popup/?rn=3906861&cl=6460498&ch=4226713&src=news
What do you need to know when you use American Express to pay for your rental car?
As spring break is coming up, you might be planning on taking a trip with your family. Wherever you go, you might need to rent a car when you get to your destination. When you hand the rental agency your American Express card, you will need to be cautious not to put yourself into any risk. Here are a few tips that can help you stay risk-free.
First of all, we are more likely to rent large cars or SUVs when we go to a rental service. People say to themselves, we are on vacation and we deserve a nicer ride. When the car rental agency recommends us to take an upgraded SUV, most people take it. Well, think again. Large SUVs are not covered by American Express at all. If the vehicle is damaged while you are trying to find a parking space in a parking lot, the damage will not be covered at all. Your personal auto insurance doesn’t cover it either. You are liable for the damage that occurs to the SUV. If your rental car is damaged, you might be billed for thousands of dollars from the rental service.
Always talk to your auto insurance agent first to understand your own coverage better. In addition to your personal car insurance coverage, American Express offers secondary protection that generally covers any remaining unpaid damages. However, here are the important exceptions:
Green and Gold cards provide secondary coverage up to $55,000.
Platinum card coverage extends to $75,000.
Large SUVs such as Ford Expedition and GMC Suburban are not covered at all.
You may also be billed thousands of dollars for a fee called loss of vehicle use fee. It means that while the vehicle is being repaired at the shop, you will be billed for the agency’s daily loss. This is not covered by American Express either. The bill will usually be mailed to you months later after your vacation is over.
Third, I will give you some tips that can help stop all the hassle. Always rent a smaller vehicle when possible.
If you can, I would recommend you to purchase the “collision and liability damage wavier fee”. It ranges from $10 to $25 a day. It covers all the accidents that might occur. With this policy, you are not liable for any charges. If you want to stay stress-free, this is the right way to go.
Now, you know more about American Express rental coverage. Hopefully, when you go on your spring break, you will be able to enjoy it and not to worry about any incidents.
www.americanexpress.com
First of all, we are more likely to rent large cars or SUVs when we go to a rental service. People say to themselves, we are on vacation and we deserve a nicer ride. When the car rental agency recommends us to take an upgraded SUV, most people take it. Well, think again. Large SUVs are not covered by American Express at all. If the vehicle is damaged while you are trying to find a parking space in a parking lot, the damage will not be covered at all. Your personal auto insurance doesn’t cover it either. You are liable for the damage that occurs to the SUV. If your rental car is damaged, you might be billed for thousands of dollars from the rental service.
Always talk to your auto insurance agent first to understand your own coverage better. In addition to your personal car insurance coverage, American Express offers secondary protection that generally covers any remaining unpaid damages. However, here are the important exceptions:
Green and Gold cards provide secondary coverage up to $55,000.
Platinum card coverage extends to $75,000.
Large SUVs such as Ford Expedition and GMC Suburban are not covered at all.
You may also be billed thousands of dollars for a fee called loss of vehicle use fee. It means that while the vehicle is being repaired at the shop, you will be billed for the agency’s daily loss. This is not covered by American Express either. The bill will usually be mailed to you months later after your vacation is over.
Third, I will give you some tips that can help stop all the hassle. Always rent a smaller vehicle when possible.
If you can, I would recommend you to purchase the “collision and liability damage wavier fee”. It ranges from $10 to $25 a day. It covers all the accidents that might occur. With this policy, you are not liable for any charges. If you want to stay stress-free, this is the right way to go.
Now, you know more about American Express rental coverage. Hopefully, when you go on your spring break, you will be able to enjoy it and not to worry about any incidents.
www.americanexpress.com
Sunday, February 10, 2008
What do you need to know about the tax rebate plan?
Congress has passed President Bush’s tax cut plan. However, before you can get your rebate check from the IRS, here are a few things that you need to know.
First of all, the tax cut plan applies to the lower-income and middle class tax payers, senior citizens that live off social security, and disabled veterans. In order to be eligible for the rebate, single individual’s income for 2007 must have an adjusted gross income of $75,000 or less. Joint files must have AGI less than $150,000. Singles will get a rebate for as much as $600, and couples will get a rebate up to $1,200. Couples with dependent children, will also receive a rebate of $300 for each child.
The rebate applies differently for individuals whose AGI is greater than $75,000 and couple’s who have a joint AGI greater than $150,000. The tax cut allows a 5% phase-out rate for those high income people. It means that for every dollar that is above the cap, he or she will lose the rebate by 5 cents. Here is another explanation for those people to figure out their tax rebate. Their rebate will be reduced by the amount of income above the cap times 5%. Here is an example, if your AGI is $80,000, your rebate will roughly be:
$600-0.05*($80,000-$75,000) = $350
In order to get the rebate, the first thing you need to do is to file a 1040 or 1040 EZ federal tax return for 2007. If you can file your federal return by April 15th, you can expect your rebate check between May and Early July. Hopefully, by now you can calculate your rebate check before you actually get it.
http://money.cnn.com/2008/02/08/pf/taxes/rebates_what_you_need_to_know/index.htm?postversion=2008020817
http://www.cnn.com/2008/POLITICS/02/08/economic.stimulus/index.html?section=cnn_latest
First of all, the tax cut plan applies to the lower-income and middle class tax payers, senior citizens that live off social security, and disabled veterans. In order to be eligible for the rebate, single individual’s income for 2007 must have an adjusted gross income of $75,000 or less. Joint files must have AGI less than $150,000. Singles will get a rebate for as much as $600, and couples will get a rebate up to $1,200. Couples with dependent children, will also receive a rebate of $300 for each child.
The rebate applies differently for individuals whose AGI is greater than $75,000 and couple’s who have a joint AGI greater than $150,000. The tax cut allows a 5% phase-out rate for those high income people. It means that for every dollar that is above the cap, he or she will lose the rebate by 5 cents. Here is another explanation for those people to figure out their tax rebate. Their rebate will be reduced by the amount of income above the cap times 5%. Here is an example, if your AGI is $80,000, your rebate will roughly be:
$600-0.05*($80,000-$75,000) = $350
In order to get the rebate, the first thing you need to do is to file a 1040 or 1040 EZ federal tax return for 2007. If you can file your federal return by April 15th, you can expect your rebate check between May and Early July. Hopefully, by now you can calculate your rebate check before you actually get it.
http://money.cnn.com/2008/02/08/pf/taxes/rebates_what_you_need_to_know/index.htm?postversion=2008020817
http://www.cnn.com/2008/POLITICS/02/08/economic.stimulus/index.html?section=cnn_latest
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