Archive for November, 2009

Loan For People Buying Car For First Time

Are You First Time Car Buyer?

First time car buyers face troubles as you would be a teenager in high school, or a college going student without established credit ratings, there are a number of barriers in the way to your entry into car ownership. When you’re young and invincible, you have all these dreams regarding the car you are going to buy, as the reality sets in, while thought you never had to cope with before unexpectedly leap out of nowhere to crush your daydream and knock you back down to earth. How would you pay for the new car? Have you taken insurance quotes? Who would finance for you? You need to pay around $ 85- 90 for gas per month, and oil rates increasing day by day, new batteries and additional expenses.

We advise all the individuals who are going for first time car buying loan to get the car which they can afford to pay off in 2 years. You need to put down 20% on the car to keep from availing upside down, where you owe more on the car than it is worth. If you can’t get down 20% on the car, then don’t purchase that car. You need to get the car in which you can afford and can put down to 20%. There is no space for arrogance or indignant replies here, it’s a mathematical fact. Whoso ever don’t follow this falls in to trouble as while dealing with first time car buying programs. (more…)

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Understanding Income Bases Repayment : The Basics

studentIncome-based repayment is a new federal student loan repayment opportunity for students graduating with a large amount of debt and a small income. Income-based repayment helps borrowers keep their loan payments affordable with payment caps based on their income and family size. This plan is particularly beneficial for people graduating from expensive graduate programs, like medical or law school, who could have loan debt of $100,000 or more. It can also help anyone who graduates into a poor job market.

In order to enroll in income-based repayment you have to qualify by demonstrating financial hardship. The good news is that it is not hard to qualify. A borrower is eligible for IBR if the total initial standard monthly payments for Stafford, Grad PLUS and Federal Consolidation Loans in repayment exceed 15% of the borrower’s discretionary income. What is discretionary income? It is the borrower’s adjusted gross income minus the poverty guideline (which is $16,245 this year). The borrower’s initial IBR payment would then be 1/12 of 15% of their discretionary income.
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U.S. mortgage applications drop even as rates fall

NEW YORK, Nov 18 (Reuters) – U.S. mortgage applications fell last week, with demand for home purchase loans dropping to a 12-year low even as interest rates on 30-year loans fell to their lowest level in six months, data from an industry group showed on Wednesday.

Home purchase loan demand fell for a sixth straight week, a trend that does not bode well for the U.S. housing market, which has been showing signs of stabilization after a three-year slump.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications USMGM=ECI, which includes both purchase and refinance loans, decreased 2.5 percent to 611.7 for the week ended Nov. 13.

The hard-hit housing market, a primary driver of the worst U.S. recession since the 1930s, remains highly vulnerable and many are hopeful that the federal government’s intervention will prevent any setbacks.
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SBI Beats its Competitors in Few Sectors

Low-priced loan schemes introduced over nine months back have propelled State Bank of India (SBI) onto the top of the growth charts in several credit segments, piping the erstwhile leaders to the post. These sectors include home, auto, small and medium enterprises (SMEs), infrastructure and education segments. In some of the project finance areas, the bank has become a global leader.

“Especially in home loans it is important, because HDFC and ICICI Bank were the leaders earlier. Now, SBI is number one. In auto loans it used to be HDFC Bank, in infrastructure finance, there are specialised institutions like IDFC, IIFCL, in SME space there is SIDBI, but everywhere we are number one now,” said Om Prakash Bhatt, chairman of SBI, in an interview to M AIL T ODAY recently.

In the auto loan segment, SBI had gained 44 per cent to Rs 11,594 crore during the 12 months ending September 2009. During the last nine months, SBI entered into tieups with several car manufacturers and their dealers for providing auto finance.

Till recently, HDFC Bank was the leader in disbursing loans in this segment.
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