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Negotiating down a student loan in good standing
Added on : Saturday November 22nd 2014 04:00:05 PM
g: 0 Posted By: RushnRockt
Views: 21 Replies: 1 I am moving out of the country in a couple of months and will still have ~$8000 worth of a federal student loan left in good standing (1.625% APR too). Once I move, getting money back to US to pay it off will be somewhat costly and I currently don't have the ability to pay down the whole amount, but probably could manage a somewhat smaller amount. Any experience out there in negotiating in this type of a situation? Thanks.
g: 0 Posted By: shawnmid
Views: 117 Replies: 3 I have a good friend who is facing some issues with his mortgage company over his second note. The problem is that they are calling the note (100k). Approximately ten years ago (the length in which the note would be called) he had taken out a second mortgage against his home at a Balloon rate. He has made every single payment on time but he is unable to get refinanced due to a Bankruptcy he was forced to undergo during the economic down turn. They also stated that due to the fact that he was late on a singular payment, he was not eligible for a modification of his loan. So at this point, his credit is making a recovery but he is unable to get refinanced nor is the company who holds this second note, willing to negotiate. Are there any type of modification ideas or solutions to this debacle? Any companies he may be able to reach out too who can properly consult him on his options? Or even a measure to blockade them from calling this note? I do know that he owes a considerable amount on both notes so there is little to no equity to be utilized. Any help would be greatly appreciated.
New User Question Deals
g: 0 Posted By: Gauss44
Views: 39 Replies: 0 In short, Sallie Mae ruined my credit with a few inaccurate reports of 60 days late. Sallie Mae customer service has been telling me that they will fix the problem since September. I sent letters to the credit bureaus to dispute this twice. No results, errors still on reports. I am thinking about suing either Sallie Mae and/or the credit bureaus. I would appreciate any help with this. (No collection agency is involved.)

Detailed version is below, but probably not necessary.

The Problem: I pay Sallie Mae one monthly lump-sum payment that covers the monthly payment for all of the loans I have with them. This worked just fine for a couple years. Then a few months ago, a few of my Sallie Mae loans showed up on my credit report as being 30-60 days late, which they were not. Payments were made on time. Sallie Mae basically goofed and failed to update their system properly to reflect my payment.

What My Credit Report Says: Listed under, "Potentially Negative Accounts," my credit report inaccurately states that I was 60 and 30 days late on 4 Sallie Mae accounts in June and July. For August through the present, it reports a status of, "OK." The accounts currently say, "Paid as Agreed."

When I Contacted Sallie Mae: I contacted Sallie Mae several times over the phone. The majority of customer service personnel I've spoken with, supervisors included, do not understand credit reports. They say that since my credit report is currently showing, "paid as agreed," that there's no problem. So, I call back until I get someone who understands that 30-60 days late in June and July is a problem, and ask for help getting that inaccurate statement removed from my credit report. A couple times now (in September and again in October), Sallie Mae's customer service promised that my credit report would be corrected. They agreed that I have not missed any payments this year, and that I have paid the full amount due every single month. Sallie Mae's customer service says that they are not allowed to send me a letter confirming my payment.

Lack of Evidence Online and on Monthly Statement: Sallie Mae did not send me a monthly statement and no longer has statements available on their website (at all, for any month). On their website, they only provide an amount due and a payment history. The payment history they provide is a nightmare and difficult to make sense of. (Here's why: I pay $500 a month. On the payment history, you never see the figure, $500. Sallie Mae divides that number into smaller payments for each of my loans they service. You never see those numbers (payments toward each loan) either, because those smaller numbers are divided again into other categories like, amount toward principle, amount toward interest, etc. What actually appears on Sallie Mae's "Payment History" page is a never ending list of, "$8 to principle, $10 to principle, blah blah to principle, $4 to interest, $25 to interest, etc. You cannot tell which amounts apply to what loan or much of anything from that mess.) Then the credit bureaus all block out the last 2 digits of each student loan identification number, so it's impossible to tell which loan they are referring to. (I've just described the problem as, "I've never been late on any loan payment from Sallie Mae, please correct the entries that claim I was late in June and July of 2014."

Evidence I Have: I have copies of cancelled checks that show Sallie Mae did indeed receive $500 from me every single month this year. I've also kept copies of the last 2 letters I sent to the credit bureaus to dispute those entries.

Result: Despite all of this, my credit report has not been corrected. I am in the process of sending Sallie Mae a letter, but I am nowhere near sure that this will solve the problem.

(I think that I've finally read all the many threads about disputes with credit bureaus on here. While they were helpful, I did not see the answer to this particular issue. If I missed something, feel free to post a link.)

Credit Deals
Help me Pay Off my Grad School Loans
Added on : Thursday November 20th 2014 08:00:09 PM
g: 0 Posted By: matrix5k
Views: 27 Replies: 0 I recently finished grad school and would like to ask for help in paying off my loans.I've been throwing every cent I have from work and credit card / checking bonuses into the loans. After the grace period ended, the early payments were divided between all loans instead of the highest interest rate loan. I've been trying to get Great Lakes to put the early payments towards the 6.55% loans only, but it's been an uphill battle. As an aside, I think it's ridiculous that grad students have to pay 6.8% or higher APR.

Stafford Loans: I set up $515/mo auto-pay to reduce APR by 0.25%
$8,307 - 6.55% APR
$7,281 - 6.55% APR
$3,786 - 6.55% APR
$10,018 - 5.16% APR
$6,108 - 5.16% APR

Undergrad loans: Not really worried about these. I set up $55/mo auto-pay to reduce APR by 0.25%
$3,283 - 3.88% APR
$7344 - 3.88% APR

Credit Card Debt: I paid the last semester with the 0% Chase Slate & Amex Everyday cards.
$12,479 Chase Slate(0% APR until 7/2015)
$8,560 Amex Everyday (0% APR until 7/2015)
$900 Other cards for various purchases (engagement ring setting, gas, food, etc)
I don't really keep track of my food/gas expenses every month. I know that I can cut those down significantly.

My FICO score is 760-770 range.

Rent - $625 plus $50 or so in utilities
Cell - $35/mo prepaid
Car Insurance - $900/year for full coverage

Income: I just got a new job with my shiny new degree. I take home about $1200 after taxes every 2 weeks right now, but it will be $3,000 every 2 weeks in about a month. I won't have benefits until I work for 3 months though, and I currently have no health insurance. My fiance and I should probably get married on paper first, since she already has benefits.I plan to propose within the next year. I have a ring already (it was given to me and I paid only for the setting).

Savings: I realize my emergency fund is really low but if I have a true emergency, I can always withdrawal from Chase checking or Roth IRA contributions right? Or charge to the 0% APR cards.
$2500 in a 2.25% rewards checking account
$1500 stuck in Chase checking (3 more months until I can close the account without losing $150 promo)
$500 in store credit cards - WalMart, Amazon, Staples, Best Buy, etc. Mostly as gifts or hot deals. Will try to use these for everyday spending before credit cards.
$121 in Schwab brokerage account

401k $41,000
Roth IRA $20,000
HSA $6,000

Car is paid off (5 year old Honda Accord)

I'm not sure if I should worry more about the 6.55% loans or the 0% APR ending on my credit cards when July rolls around. I can probably do more balance transfers but have to pay a 3% fee, unless another 0% BT fee card comes along.

I just got a BT offer from BoA for 0% APR until 7/2016 with 3% fee, my credit limit is $15,000. Should I use this to pay the loans now?
I plan to apply to refinance with SoFi or DRB. Should I wait until I have paystubs with my new job, or should I apply now with my lower income?
Personal Finance Deals
Declaring BK - Inflated income on CC and loan apps. Will I go to jail?
Added on : Wednesday November 19th 2014 04:00:07 PM
g: -1 Posted By: CrownVicSuperFan
Views: 216 Replies: 7 I am in a very bad financial situation and it may be time to declare BK. I have a small business and I gross about 90k per year and net 60k. I declared income of 140k on several loan and CC apps about 3 years ago.

Auto loan balance is currently about 25k at 2.5% with Penfed, and the CC balances are over 120k (mostly 0% or 1.99% interest rate because of offers). My Fico score is in the 650 range mainly because of utilization.

I took the CC money and made some foolish business risks if anyone is wondering where the cash went. If you ever want to figure out how to turn 250k into 100k, just ask

I don't own a home or any real assets. I am 26 years old and married. We have 2 kids. Wife is 23 and pursuing grad school. Is there any chance I will see fraud charges or jail time if I decide to declare BK?

New User Question Deals
Rent current home out, buy a new home or rent a new home?
Added on : Wednesday November 19th 2014 11:00:08 AM
g: 0 Posted By: awebs
Views: 135 Replies: 3 I found a few threads on this, but none of them seemed to be in as complicated a situation as we are in so I'm starting a new one. (Sorry if it seems redundant.)

In 2006, we bought a very small condo for 356k (we owe about 320K on it now). Last month, a comparable unit in our complex sold for 253K so that is probably close to what our unit is worth. In other words, we are still very under water.Since we bought the home, we have had a child and are planning to have another soon so we are outgrowing the amount of space we have.The best solution we can come up with is to rent our place out and try to buy a new place. The mortgage is one of those crazy housing bubble specials so right now, the payment is very low due to the low interest rate. Our first mortgage is $635, the second is $110, $282 for HOA and about $210 for property taxes for a total of $1237. We think we can get somewhere between $1400 and $1550 per month in rent for it. So we would make a bit of profit.

We have no child care costs since we work opposing schedules. We are working on paying off all of our non-mortgage debt (when we are done, we will have no car loans and no credit card debt), and we will then move on to saving up a down payment for a new place. We are willing to move into a rental ourselves and rent our place out in order to establish rental history, if we need to.

The kind of house we are looking for in today's market is about 400K.

This is a common enough situation, now on to the complexities:

1-My father in law is a coborrower on the loan. We have always had enough income to pay the loan and we have good credit, but we were very young and didn't have a long enough employment history to qualify by ourselves back in 2006. He has never paid anything toward the loan. Short sale has never seemed like an option because we don't want to hurt my husband's parents. I wasn't sure if this situation would affect our ability to qualify for a mortgage on another home.

2- Our combined income is $91,000 per year. Part of that is from tips which my husband's employer does withhold taxes from and report to the IRS. I assume this would be okay since it's all documented, but wasn't sure since this is the only time I've ever heard of someone actually paying taxes on tips? If you don't count the tips, our income falls to $83,000. I've crunched the numbers and either way, I don't think a bank would say we could afford 2 mortgages without counting our rental income, unless I calculated incorrectly.

3- Since our current loan is whacky and could go up or down with the interest rate, would this count against us?

4- We don't qualify for any HARP goodies. Our loan is not backed by Fannie or Freddie and the mortgage servicer has rejected our request for modification since we can afford to pay and have never missed a payment.

I know lenders are strict now about rental income not counting. Is there any hope for us?

How much should we plan to save for a down payment?

How long would we have to rent our place out in order to convince them to count the rental income?

How much cash reserve (other than the down payment) would we have to have?

I'm not sure how long it will take for us to qualify or if the interest rates or home prices will still even be affordable by then...

Are there any other options we should consider?

We also thought about just renting a bigger place for ourselves, but the rental market in our area is really hot so rent would be higher than the mortgage payment would be which just kind of hurts...

Thanks in advance for your help!
New User Question Deals
How does this scam/ripoff work?
Added on : Tuesday November 18th 2014 11:00:12 AM
g: 0 Posted By: nasheedb
Views: 31 Replies: 0 I received the following letter in the mail. I typed it out, word for word. All the grammar mistakes you see below, are present in the letter.
Scam letter said: Dear Home Owner:

I am writing because I am looking for someone who is interested in selling on their own (without a real estate agent) for a full price offer, might consider keeping your current loan in place for a while. During that time, we will cover 100% of all mortgage payments, property taxes and insurance as well as all maintenance and repairs on the property. (Don't worry, we are not conern about any late payments if there are any. We have the know how to work that out!)

We will then put the loan in our name, or sell, say in 3-4 years, at which time we'll retire the mortgage loan and repay any equity.

If this is something you'd like to discuss, please call us at your convenience at 877-xxx-xxxx (24/7)

Someone is always available to take your call.
[Early morning - During the day - Late at night}

Please call us at your first opportunity.

We Buy Home Full Price - All Cash or Terms Quick Close - Foreclosure OK - Tax Liens OK - No house too dirty, broken or ugly. We buy "as is" and ability to Close fast without any stress. No closing cost come out of your money. We pay everything! Our name says it all blah blah blah company.

Call today 877-xxx-xxxx (24 hours a day)

$$$Thanks a Million$$$, for taking the time to look over this letter

You'd have to be the biggest moron on the face of this planet to respond to a letter like this. However, it got my curiosity, what exactly are they trying to do? How are they scamming people? Are they taking over people's houses and renting them out? Are they buying houses for cash and making low-ball offers?
In a serious bind with a botched used car purchase!!
Added on : Monday November 17th 2014 02:00:23 PM
g: 0 Posted By: leftandwest
Views: 15 Replies: 1 For everyone's convenience I'm going to try to make this as concise as possible. I had been making the payments on a relatives car for about a year, and during that time it was completely in my possession. Later on down the road, family member runs into serious financial trouble and needs to claim bankruptcy. To remove some of his debt and make the car fully mine, I got to bank, get a loan in my name, and send the check to my relative. After cashing the check his bankruptcy attorney tells him that if he pays of the car, or pays me back, it is considered being preferential to his creditors, and I could be held liable. For a few months we sat in a limbo period where I kept making my loan payments, and I thought he was making his. Turns out my relative is a scumbag, and wasn't making his payments, and now the car is supposed to be repossessed. So to get to my real question, what are my options? If I parted out the car that I paid for, what would be my liability? Must I surrender the car for repossession? What legal action can I take against someone claiming bankruptcy, and what could I expect if the court decides in my favor? Any help would be greatly appreciated! Thanks!
New User Question Deals
Getting out of the military, looking for my next opportunity
Added on : Sunday November 16th 2014 09:00:05 AM
g: 0 Posted By: mastroadam
Views: 102 Replies: 0 I'm 26 years old and getting out of the marine corps soon. I have a wife and two kids, free housing with my parents when I get out, two vehicles paid for, 25k in the bank, 10k in lending club that I am slowing taking out after they allowed institutional investors to have first dibs. I have three years experience prior to the military in the health food industry and six months in quality control, active security clearance, four years in air defense experience. I've been churning for the past four years, investing for the past six years. Interested in flipping things off slickdeals and rental income. My wife is bilingual, veteran, and has a disability (which from what I read lets us qualify for a VA loan minus the funding fee). I will be moving to the Chicago area in a few weeks and would like you input for any opportunitiesI might have overlooked.

Discussion Deals
New Car (2014 model) or Certified Pre-Owned Car (2012 model)?
Added on : Friday November 14th 2014 02:00:11 PM
g: 0 Posted By: AndroAsc
Views: 145 Replies: 2 I'm a car newbie here and looking to purchase my first car. Been driving rentals since I got my license using the $9.99 weekend special from Enterprise, but soon I need to get a car for my new job.

What's the most financially "cost effective" method of purchasing a car? Should I buy a new car or get a relatively new "off-lease" type of CPO cars? At the moment I am looking for cars that are no more than 3 years old.

I did some research on Toyota Corolla.

New Car
TrueCar.com only gave me data for the 2015 model, which has an invoice price of $18k. I'm guessing that I can get a new 2014 model for slightly less since I've read the end-of-year season is when dealers have the most incentive to move out the old inventory. Let's assume I bargain it down to $17k. New cars come with 3yr/36k miles standard warranty, 2yrs/24k miles free maintenance and 5yrs/60k miles powertrain warranty

Certified Pre-Owned
Currently around my area there are a few certified pre-owned 2012 model with just under 50k miles and they are going for $12k. Let's assume I bargain it down to $11k.. The CPO program provides 1yr/12k miles standard warranty from time of purchase and 7yrs/100k miles powertrain warranty from manfacturing date. That means I will get 1yr/12k standard warranty and 4yrs/50k miles of effective powertrain warranty.

I'm surprised that the premium between a new car and 2-3yr old CPO car is only $6k. I remember reading that new cars lose half their value (or something like that) when you drive it off the lot. However, I've also read that because of the bad economy during the 2009-present period, new car sales have dropped, which means that the supply of CPO/used cars have dropped and some articles claim that used car prices are "higher" than in the past.

I'm planning of purchasing the car outright, unless I can get a very low interest rate loan (has to be less than Ally savings interest rate), so the difference in financing between new vs CPO should be a non issue. Not sure about insurance costs between new vs CPO, but I'm guessing they will be similar.

Is the $6k premium worth it? Should I get a new car over the CPO car? Is the extra standard warranty and free maintenance worth $6k? What would FWFers do?
Discussion Deals
MBA student lost about career direction
Added on : Thursday November 13th 2014 08:00:07 PM
g: 0 Posted By: brandonq
Views: 108 Replies: 0 I decided to enroll in a full-time MBA program (top 15 school) and I still haven't found what I want to do. I came to school wanting to do something in finance such as asset management, equity research, etc. I also passed CFA level 1 to indicate interest and be more competitive for recruiting.The interviewing process has been difficult and I'm not sure whether I have what it takes to get through. I like the financial markets and enjoy studying it, but I'm not sure whether I'm "passionate" about it. I like macroeconomics, but I'm not sure whether I'm "passionate" about it. I have to prepare stock investment ideas for interviews and it feels more like a chore than something I should be doing in my free time for fun. I don't think I really have anything I'm "passionate" about.

Deep down, I feel that I should've been some data analytics type person or even a software developer because I'm technically inclined and I pick up that stuff quick, but am I short-changing myself? And I didn't come to MBA school to go that path. Since I don't have a good job lined up, I'm somewhat regretting the MBA decision. I don't know what I was thinking when I decided to go to school and take out loans. What other paths are worth considering within finance? Since my resume seems to mostly get me interviews for asset management/equity research, am I better off continuing to knock on those doors or am I trying to go in a path that really isn't for me?
Finance Deals
2% Cashback on All (?) Amazon Purchases toward Student Loans with Gradible
Added on : Thursday November 13th 2014 01:00:11 PM
g: 0 Posted By: Compeek
Views: 9 Replies: 0 Gradiblehas surveys and tasks to complete to earn credits toward student loans (government or private). I'm not terribly interested in that kind of thing, but I recently noticed that they have somewhat of a CashBack portal for a few sites, and the most interesting one is Amazon.
Gradible said: Get 2% back on all your Amazon purchases! Weve teamed up with the largest e-commerce platform to offer exciting deals for grads that use the site.

You can find it on their Shopping Center: http://gradible.com/shopping-center/(must be signed in). You have to click their affiliate link to get to Amazon and then forward your email receipt to them, so it's a little more cumbersome than the normal CashBack portals. You also have to redeem it toward student loans, which is the whole point of their service. Still, according to the description, it's 2% on all purchases, which is unheard of for CashBack at Amazon as far as I know.

Screenshot of Shopping Center page with details:http://www.uploady.com/#!/download/4wN9f~8TnOr/s765l5cZGXLsF4IW

Their sign up pages says they have paused sign ups due to high volume, so you have to request an invite. If you already happen to have an account, though, this might be worth checking out.

You need 100 LoanCreds ($10) to redeem them, but there are some fairly easy tasks that you could do to hit the minimum. I'm more interested in this for the CashBack longterm though.
g: 0 Posted By: hipnetic
Views: 1 Replies: 0 I imagine the answer is 'no', but I figured I'd ask, just in case. I had some major work done on my house last year (new paint, new roof, other repairs/improvements) where I spent over $25k. I had the money in savings, so I paid for everything myself. This year, we needed to repave our driveway, so that's another $8k I paid out of savings.

Then I thought that maybe I should have taken out a Home Equity Loan (or HELOC) to pay for those things and left myself more cash in savings. It's not possible to take out such a loan now and reimburse myself for the work I've already done, right?
Personal Finance Deals
g: 0 Posted By: ajk23
Views: 72 Replies: 0 From my research (I am in PA), If we do a conventional 30 yr loan with 20% down, I am reading we can get a max 5-6% back at closing as seller's assist. My wife confirmed this with our mortgage broker. However I am also reading that this cannot come out of our down payment, which would mean we can't possibly get that much back. (I do realize I am going to have to contact my broker again to explain this to me, but in the meantime I figured I would ask you find folks)

Here is my scenario - offering 344,900 on a house + 4% towards closing costs. Using everyhome.com as a guide, our costs break down as:

Sale Price = $344,900
Down Payment20.00% = $68,980
All other taxes, fees, etc = $10,764
Seller Assist (4%) = $13,796

Is this allowed? Our broker says we can get approx 5-6% back but even 4% eats in to our down payment, right? Or am I understanding this incorrectly?

Thanks for any help you can give!
Personal Finance Deals
Best Private Student Loans?
Added on : Monday November 10th 2014 04:00:12 AM
g: 0 Posted By: ccohen322
Views: 93 Replies: 0 Hi FW,
I was wondering if anyone had any recommendations for private student loans for an undergrad. I'm transferring to a four year state school, and my government award amounts (awarded through FAFSA) won't cover housing and the meal plan. Sallie Mae is the obvious one, but is it worth looking into any of the less well known companies, like Discover? I know there's a bunch of factors that determine my interest rate (credit score, history, etc.), but if anyone has any info or experience it would be highly appreciated.
Personal Finance Deals
Graduated, found a job. Now what?. Advise with handling money please.
Added on : Sunday November 09th 2014 10:00:04 AM
g: 0 Posted By: partyallnight
Views: 102 Replies: 6 Finished my PhD earlier this year. Graduated, got a job that took me from a Professor's monthly stipend to some thing like $130k per annum.

My life style never changed. I am still going to live with room mates atleast for a while, in the same college town. Food habits improved a bit. Still driving the old beater car, sharing fuel costs with room mates for grocery purchases. No girl friend or wife, none in the near future at least.

For the first time, my bank account has actually started to grow. I am saving literally around 50% of my pay check. Maybe in the future after room mates graduate and move out, I might not look for new ones and my rent amounts might increase, but still. I like seeing numbers in my bank account I have never seen before.

I have been browsing FW forums for a while. Haven't really seen any suggestions on what to do with money. Everyone says you should try and save etc etc, but nobody says where the savings goes.

The bank where I store my money has a savings account that offers 0.05 % or something like that. Might as well just keep the money in my mattress, right?

I am asking because I want your suggestions on whether I should open a new bank account, whether I should do something else (no credit card balances or student loans, so I don't owe any one at the moment. Not planning on taking out any car loans / house mortgages for now either). Where do you guys keep your excess money? I don't know much about stocks, and I understand Boggleheads is a good place to learn. But I don't want to start having fun with stocks till I build what I see everyone call a "nest egg".. but where exactly does this "nest egg" get stored? (I am closing to having 5 months worth of living expenses in my bank, the way I am living right now).

Any suggestions? Keep it in my checking account till I get enough to invest in some thing big? Go for one of those online savings with 1% returns? It seems like everyone is putting their money to work, and I am just missing something. What am I miss?
Investing Deals
What docs does Penfed need to approve a car refi?
Added on : Saturday November 08th 2014 01:00:08 PM
g: 0 Posted By: alamo11
Views: 39 Replies: 0 Simple question.. What docs does PenFed need to approve a car loan? Trying to help a friend refi his 10% car loan.
Question Deals
Car lein question from eloan
Added on : Saturday November 08th 2014 05:00:06 AM
g: 0 Posted By: prozario
Views: 28 Replies: 0 I had a 2007 car purchase where i originally got a car loan from e-loan. By mistake when i wrote the check, i forgot to spell out the amount, and check got rejected. Later i went to dealer and just paid off by cash/personal check. So i have all those paperwork - but now trying to get a title, DMV told me e-loan still has a lien on property.

Went to e-loan site, and they have a number where they transferred servicing of all old loans. And these guys can't find it. I don't have any account# - as i guess loan was never established. They did search by SS number and vin, can't find it.

Any thoughts? Anyone has similar problem. E-loan customer service is not available today - so i guess will see if they can help.

Also, any site where i can see the exact loan name-owner/phone number of lien holder? Will carfax provide this information?
Question Deals
Lending to a friend with collateral in hand using some online service?
Added on : Friday November 07th 2014 08:00:11 AM
g: 0 Posted By: Al3xK
Views: 59 Replies: 1 To prevent naysayers, I'll start by saying I'm interested in lending a small amount of money that I'm not concerned if I don't get paid back to an ex-gf as sort of a severance package. I'm pretty confident I will get it back, and it's secured by tons of collateral.

The situation is this. She was rear ended and the car was totaled. I took the insurance check and bought a 2012 car at auction out of state. It was delivered to my driveway this morning and I have 100% control over what happens to the title next.

The car is paid off in cash from insurance check, worth $11,000 and I'm owed $528.

She needs tires, windows tinted, vehicle registration, real-car-insurance, etc which add up to like $1300 plus the $528 owed to me.

What I'd like to do is just give her a $2000 loan (minus $528 I already paid) and put my name on the title as lien holder, then use a website likezimplemoney.com to collect a small interest for a short term (1-2 year) loan. This will let her make monthly payments online, so I don't have to deal with checks or meeting with her. I'll earn a little interest, but mainly I'm doing this to be nice because it's almost no skin off my back and it'll make her life way easier.

Has anybody used any of those sites and have any recommendations for better sites or experience to share?
Personal Finance Deals
novica.com/ dailydeal/ $39.99 Sterling silver half hoop earrings, 'Dome'
Added on : Wednesday November 05th 2014 09:00:07 AM
g: 0 Posted By: DaysFan
Views: 157 Replies: 0 http://www.novica.com/dailydeal/Sterling silver half hoop earrings, 'Dome'TIME LEFT TO BUY12:26:41Sterling silver half hoop earrings, 'Dome'ID: 178366 - In StockSUGGESTED
DEAL PRICE$39.99Items: $ 39.99
Premium Gift Wrap: $ 0.00
Shipping: $ 3.95
Shipping Discount: - $ 3.95
Sales Tax: $ 2.70D
uty/VAT $ 0.00
NOVICA Credit: $ 0.00
Applied Code: - $ 10.00
Artisan Loan Balance: $ 0.00
Total: $ 32.69
Jewelry Deals

NOVICA Coupons
Jumbo loan rates lower than high-balance conforming
Added on : Monday November 03rd 2014 02:00:03 PM
g: 0 Posted By: mojoshtudd
Views: 81 Replies: 0 I am shopping for a refi for a $500k loan balance. Looking at ARMs, I am seeing that rates are quite a bit better for jumbo loans.
It used to be that anything above $417k would be a jumbo but now there is this 417k-625k range that is labeled high-balance conforming.

For example, in California, 7/1 ARM is at 3% for jumbo and 3.375% for high balance conforming at Capital One.
CapOne said I wouldn't qualify for jumbo. Is that the case in general for all lenders? Would be great to be able to get the jumbo rates in this case.

Question Deals
new car: deliberately purchase GAP insurance vs cash purchase
Added on : Sunday November 02nd 2014 01:00:06 PM
g: 0 Posted By: chevoltrolet
Views: 42 Replies: 0 First post so please go easy on me. I'll edit with any suggestions.

I'm purchasing a new car. (I usually purchase used so let's not get off topic on that
I've been saving for this and was planning to buy cash. Let's assume for purposes of this topic that I'm purchasing for $32.5k and the value of the vehicle depreciates exactly as shown on the graph attached. I know this is a huge assumption, but please bear with me.

My question is, how exactly does GAP insurance work?

That is, is there anyway to utilize a loan and GAP insurance the FWF way? Here's what I'm thinking: looking at the attached graph, the two lines cross at $15k at 3 yrs out. So, only paying $15k down and financing the rest and purchasing GAP insurance. Then, fingers crossed the car isn't totaled in the first 3 years, and if so, pay off the remainder of the loan in its entirety at year 3.

If this isn't how GAP insurance works, please explain to me the flaw in my logic and I'd like to hear your opinion as to how to finance a $32.5k car when you have $32.5k saved up specifically for purchasing a car.

Thank you all in advance.

Question Deals
Student Loan Interest Deduction When Refinancing Capitalized Interest
Added on : Friday October 31st 2014 10:00:10 AM
g: 0 Posted By: GamingG
Views: 43 Replies: 1 Normally, the first $2500 of student loan interset paid, capitalized student loan interest included,is tax-deductible (provided that one's income isn't too high). If a student loan that has some capitalized student loan interest is refinanced prior to paying the loan interest, is it tax-deductible for the year the refinance took place, or the year the new loan is paid? How will this show up on a 1098-E?
Tax Deals
Bank trying to increase the rate of a fixed rate mortgage after closing
Added on : Thursday October 30th 2014 10:00:06 AM
g: 0 Posted By: juniortt
Views: 95 Replies: 0 Bit of a long story so I'll cut to the details I feel are critical:
- Closed on a construction loan ~6 weeks ago at a rate of 4.00% (two separate documents in the pile of papers we signed showed the rate and both indicated 4.00%)
- Received certified mail from the bank ~5 weeks after closing with an addendum stating the rate would be 4.49% instead. There was a sticky note saying the document "needs to be signed."
- Got a call from the settlement company today that they received the same document from the bank and were being asked to have us come in to sign. Instead of a sticky note, they got a cover letter indicating penalties would be assessed and our credit would be damaged if we did not sign and return promptly.

My call to the loan officer who I dealt with during the application has not yet been returned. My reason for reaching out is to hear the bank'sside of the story. Regardless of their story, my intent is to verbally refer them to the signed contract indicating 4.00%, but that shouldn't be breakingnews to them.So am Ileft to wait for penalties and credit hitsto come at me before I can take further action? Is there anything else I should be doing at this point?

Personal Finance Deals
Using Credit Card to pay off Student Loans question
Added on : Wednesday October 29th 2014 11:00:06 AM
g: 0 Posted By: sliqx
Views: 89 Replies: 0 Hey guys,

I finished graduate school a little over a year ago and accumulated ~110k in student loans (including undergrad). My current interest rate is 7.9 (IT'S KILLING ME) and I'm currently going to have it refinanced. I went through SOFI and they gave me a 3.875 variable rate, which I hopefully will be able to pay off in 2 years. I have the loan down to 70k (I paid 40k in loans + interest this year), with an annual salary of 70k. My question is, is it possible to open a 0% transfer balance credit card and pay some of the loan off with it? I wanted to sign up for the Chase Slate Card (0% for 15 months) and max out the limit and pay it off over the next few months to help reduce the interest, however, my loan company does not accept credit card as a form of payment. I went in to Chase today and they said "sometimes people get access checks when they get approved for slate card, and some don't. There's really no way of figuring out who gets those checks." Is there any other suggestions to be able to use a 0% CC to pay off loans? Even the transfer balance at 3% is lower than my loan rate. Any help would be great, thanks!
Question Deals
LightStream loan
Added on : Monday October 27th 2014 03:00:10 PM
g: 0 Posted By: ficonator
Views: 63 Replies: 2 I was approved for a three year 40K loan from LS at 1.99%. I am reading loan agreement:

USE OF PROCEEDS: You agree to use the proceeds of this loan for the purpose indicated by you in your application for this loan. You agree not to use any of the proceeds of this loan for refinancing any existing loan with LightStream. You further agree, if so requested by LightStream, to promptly provide written verification of the use of the proceeds of this Agreement, in a form satisfactory to LightStream.

Anyone has experience with them actually requesting confirmation on the use of the funds?
Question Deals
Is the Standard Repayment Plan the best loan consolidation option?
Added on : Thursday October 23rd 2014 09:00:18 PM
g: 0 Posted By: SyZpuzzler
Views: 13 Replies: 1 I have 27k in student loans, split across 6 loans ranging from 2k-5k and interest rates from 2.8% to 6.8%

If I want to pay off my loans aggressively, is this the best option?
Question Deals
g: 0 Posted By: LordB
Views: 2 Replies: 0 This is in Massachustts and town to my knowledge does not have any additional legal requirements. The complex is ~8 units with a few duplex style places and 1 large master house that has been split up into 4 or so units.

The landlord says that he needs to refurbish 2/3 of the apartments in order to get a new bank loan after the property being tied up in probate for many years and having tax issues he needs to refinance from an ~8% loan down to the current rates now that it is out of probate (presumably a cashout mortgage that would allow him to pay off the tax issues as well).

The thing is the "refurbished" apartments he is talking about aren't all that refurbished. He hasn't done any more work on them than what I would consider the absolute minimum amount of work you would do to rent out an apartment. He is honestly borderline slumlord. His "refurbished apartment doesn't even have a proper rug replacement and the kitchen cabinets are in crappy shape.

The apartments are the exact same size though they have some minor layout differences which have both pros and cons (I would say the new place is a more in the cons side than the pros side).

He wants me to sign a new lease when I move to the new apartment with similar terms as the old one though he is willing to put terms in it to allow me to break the lease with 30 days notice as long as it isn't winter.

Anyways does his claim to need 2/3 of units be refurbished sound like a legit bank requirement? Can anyone think of anything shady that he might be pulling? Mostly worried about things that would affect me, but also curious about what other games he might be pulling (aka scamming others). I might be able to get more terms out of him if I truly have the upper hand here. For whatever reason he really seems desperate for me to move... Perhaps he is telling the truth about the bank requirement, but honestly it all just seems weird.

Margin Loan for Real Estate from Interactive Brokers
Added on : Wednesday October 22nd 2014 04:00:15 PM
g: 0 Posted By: corwinamber
Views: 71 Replies: 2 There've been a few threads in the past talking about taking out a Margin Loan from Interactive Brokers (with their crazy-low interest rates for large portfolios) to purchase real-estate, either as a bridge loan or, presumably, longer term as long if the rates stay low enough. So currently a $1.5M margin loan from IB would be at about a rate of 1%. That's certainly enticing compared to a traditional mortgage (not to mention the lack of fees, paperwork BS, etc.) I'm well aware that there's a much higher risk if securities go south but I'd probably put something like $2.5M in assets into the account so it would take a pretty nasty downturn to be a problem. (Part of the reason to do this, rather than just liquidating the securities and paying cash, is to avoid some capital gains I have on a couple of those securities. It was a good call to buy AAPL and TSLA last year )

But I'm wondering if anybody out there has done something similar, particularly with IB, and can reassure me that I'm not missing something here.

Previous threads that touch on the topic can be found here: http://www.fullofdeals.com/forums/finance/1359910/ andhttp://www.fullofdeals.com/forums/finance/1337838/

New User Question Deals
Car Dealer Asked Me To Come In To Re-Sign The Auto Loan contract
Added on : Wednesday October 22nd 2014 04:00:12 AM
g: 0 Posted By: sellingherbal
Views: 223 Replies: 8 I did negotiate the deal through emails, and the car we negotiated was Honda Pilot 2015 EX-L with RES, but at the end they gave me a Pilot 2015 without RES but just a stand-alone DVD player. I swallowed the loss to take $1000 discount after arguing with the saleman and the sale manager, they threaten me with bad credit if I withdrew the deal etc...Because the same car without RES is at least $2000 lesser. So, I put down $15,000 down payment, signed all the papers, got the tags and temp registration sticker etc...Today, Oct 21, 2014, they emailed me and ask me to come in to sign for new contract. I asked them to explain why and they told me " in the itemization of tag fees it did not print the $10.00 tag fee" , so the new papers I will sign will have that $10 included. My question is why would something like this happen? Are they trying to trap me with tricks? Any suggestion for my situation will be really appreciated because this is my first time I bought a car.

Thank you
First time car buyer with NOT good credit
Personal Finance Deals
offered a limp sum pension buyout
Added on : Tuesday October 21st 2014 05:00:07 PM
g: 2 Posted By: warrensmailbox
Views: 101 Replies: 2 I've been offered a limp sum pension buyout from my former employer of 30 years.. It's near a quarter million. I'm 60 and on SSDI for 10 years, the wife is 57. She is on SSDI as well. (5 years now)Together we get about $3000 in SSDI monthly payments and a personally paid for un-taxable insurance disability income payment of $900 per month. We also get $400 income per month as rental income.Total monthly income is about $4300. I've found I get more than double an average American gets from SS (which is about $1,100 PM). So I'm highly compensated as for as SSDI payments.We still owe on our home $350 a month -insurance & a new 40 year loan to boot. (it's complicated due to no heath insurance for 6 years and we lost our primary home which was mortgaged to cover medical expenses (no one would sell us a plan) and finally had to file chapter 7, we moved into our 90% finished vacation home (they let use keep it) had to give up my Ram, RV and primary home. We have medicare coverage now thank God.We have a few new medical bills, car payments and credit cards (from meds) we owe as well. Total amount in debt is only about $77,000 that we can pay off with a portion of our lump sum in cash plus thousands extra left over to bank. The other slightly larger portion to be rolled over into an IRA (no taxes to pay) which I wouldn't draw on only until I'm 65 than take small monthly payments.Our health is fair to poor actually more leaning toward poor. Our monthly income (we'll lose the $900 insurance payments if I took the buyout or annuity) without these debt obligations my monthly living expense would be $1731.00. Food, utilities, clothing, insurance, deductibles/co-pays and such all fractured it. We don't pay any type of taxes, property or state/feds income. Of course we'll take a 20% tax hit on the cash out, but we may get some back.Total income would be $3350.00. Amount free with no obligations would be $1,600.00 per month and will be split to saving per month and most importantly our home will be ours again.If I took the annuity option 2 instead I would get $1,450 a month right NOW for life, BUT per terms of my personal disability insurance contract once I do that the $900 monthly payments stop as well. So basically I'll only get $500 extra income but the whole $1,400 will now be taxable income. 17K a year taxable.I'm leaning to the boat load of money. I feel we can do without the pension payments and lets face it we may not live long enough to enjoy it, plus my only child could be left something other than bills.What do you think?Thanks
New User Question Deals
Auto Loan Advice
Added on : Tuesday October 21st 2014 09:00:12 AM
g: 0 Posted By: bcookomatic
Views: 23 Replies: 2 I currently owe about $26k on my auto loan with 2.9% interest rate and 4 years remaining on the loan. I have about $45k in an online savings account with a very low interest rate. Would you payoff the loan now using money from this savings account?
Personal Finance Deals
Options to cover grad school tuition until reimbursement by employer
Added on : Tuesday October 21st 2014 07:00:06 AM
g: 0 Posted By: Parthanon
Views: 131 Replies: 6 I'm looking for options to pay for my tuition which will be later reimbursed by my employer (assuming a B or better). Basically I need to put up the 2K or so for class and won't be reimbursed until about 3 months later. I was using a credit card to bridge the gap but they are now charging a fee for this (I held off paying until I could safely repay without interest). Is my best option to just take out a student loan that has no pre-payment penalty? Other options I'm not thinking of?

Personal Finance Deals
g: 0 Posted By: lmbebo
Views: 13 Replies: 0 My wife and I moving to a new city, about 800k, with low cost of living and no state income tax.

My income will be 300k, wife with no income at all (both still hoping she finds a job).

Emergency fund savings of about 65k, retirement in the range of 80k. 14k saved for another surrogate attempt.

Debt, about 67k (no interest, but quick repay) to my in-laws for a gestational surrogate attempt, now with an amazing 1 yr old daughter.
car debt. 13k(@355/mnth - wife's car) and 25k(@585/mnth - my car) on 2 different cars (0.9 and 1.9% interest).
About 60k left my edu loans (1 loan of like 35k at 1.5%, the rest at 3.5% - consolidated before things got real bad).
Credit score is 780+. No credit card debt.

Loan repayment everything amounts to $3110/month. Should be free of surrogate and car loans by early 2017.

Things are complicated by trying to also save for another transfer with our GC (cheaper than 1st attempt, but still another 50-60k we will need saved). Pushing it quicker because I don't want to be over 40 with a new born and don't want to have a huge age disparity between our children. I am 37 and wife is 33.

To cut to the chase, I'd like to continue to rent. Pay off some debt and build up a downpayment. My wife wants to take advantage of the mortgage rates and start building equity in a home. She's tired of giving other people our money with nothing to show for it.

We could probably be able to swing 20k for housing associated costs.

House in question is a 3 bed/2 bath in a new development area on the side of town we want to be in. It doesn't feed into the 2 high schools I'd want my child attending. House is a new build, reduced from 279k to 255k. She sees it as a starter home that we would eventually move out of in the future. I grew up living in a single house that my parents still own (35 yrs and counting). She has moved through 3-4 homes as a child and sees that a starter home is a pathway to our eventual home we'd like.

Am I making a mountain over a mole hill by sticking to my guns about continuing to rent and get ourselves financially secure?

edit: Of the houses we saw, I'd be happier being in this 400k home with 4 bed/3 bath in an established neighborhood. Something I feel will last us longer than 5 yrs...

Auto loan refinance or not
Added on : Friday October 17th 2014 08:00:18 AM
g: 0 Posted By: FWFfollower
Views: 72 Replies: 2 Wife has a corolla, with a original loan of about 16500 at 1.99%,
outstanding loan amt: 8574.56, remaining duration: 30 months.

Should we refinance for another 60 months, at 1.49%? We plan to buy a house in the next 12-18 months and want to build some down payment and also feel having a loan at 1.49% is too good and would like to stretch it longer. We don't have any trouble making payments either way.
Personal Finance Deals
Strategy for first house
Added on : Monday October 13th 2014 11:00:06 AM
g: 0 Posted By: tempium
Views: 189 Replies: 5 Background

Wife and I (30 years old, no kids yet) are considering buying a house. Our HHI is ~155K. We have about 60K saved for downpayment + emergency fund + ~175K in retirement assets. Only debt is ~30K in student loans @ 2.75 variable. We are currently able to save 30% of our gross income paying ~1800 in rent.

We live in a major metro area and are looking at "fixer upper" homes in the 300K range. The hope is to spend the next 3-7 years in this home building "sweat equity" funding renovations with cash flow while maintaining a high savings rate, then rent it out when we retreat to the burbs. We have experience renovating a family vacation property ourselves and are managing it for short term rentals on behalf of the family.


1. Condo in decent part of the city
2. Single family just outside the city
3. 2 Unit multifamily in a less desirable neighborhood just outside the city
4. Go to the burbs now (unlikely because it limits career options)
5. Keep renting and saving

We've looked at properties in all these categories and have been discussing the pros and cons of each. Right now we're leaning towards option 2. What say ye gods of FWF?

Personal Finance Deals
Best use of $15,000 towards student loans
Added on : Monday October 13th 2014 11:00:05 AM
g: 0 Posted By: mikey4226
Views: 4 Replies: 0 I am fortunate enough to have a family member offer to pay $15,000 towards my student loans and I needed some advice on the best way to use that money.Here is my current loan situation:

Grad Plus loan @ 7.65%
current interest: 596.71

Stafford loan @ 6.55%
principle: 254,015.87
current interest: 16,067.23

Currently, my minimum IBR payments are $491.33. The govt pays $231 towards the subsidized interest on the stafford loan. Payments for each loan are applied to interest first, then to principle. Each month, I try to make extra payments of $1500, sometimes less, sometimes more.

My first question is: should I put the $15k towards 1. the principle of the grad plus loan or 2. the interest of the stafford loan?
Option 1 would greatly lower my grad plus principle and effectively lower the accrued interest by about $100/month. Option 2 would nearly eliminate the stafford loan accrued interest, making it easier for any extra payments to start lowering the principle.

Secondly, should I put all extra $1500 towards one loan or both?
Putting it all towards the grad plus loan (Dave Ramsey style) would allow me to pay off almost half of the grad plus loan within a year, but the interest of the stafford loan would increase by about $16,500 over the year.
Splitting the payment between both would allow me to pay off the additional interest each month and maintain the accrued interest of the stafford loan where it is now, and any money on top of that would go towards paying down the grad plus loan...obviously making it take longer to pay off the grad plus loan.

I keep going back and forth with everything and I'm getting very confused. I'm leaning towards putting everything towards the grad plus loan and get rid of that as quickly as I can, but it's painful to know that the stafford loan will be increasing $16,500. Any advice is appreciated. Let me know if you need any additional information. Thanks!
Payment breach system
Added on : Saturday October 11th 2014 06:00:13 AM
g: 0 Posted By: delhel
Views: 84 Replies: 2 Since everyday a new retailer coming out with bare rear end to expose their lame payment system, I think we can start a new thread to address this situation as a whole. This is particularly a major problem for FWFers as we have dozens of credit cards and loan acconts. The situation is so out of control that I feel things will be really bad in a year or so when the hackers will have enough time to consolidate all the information they stole from various sources. As for myself, I started to change my online passwords systematically. However I have zero control over other personal records.I am curious to know what other FWFers are thinking to safeguard their financial/personal data in coming future.
Discussion Deals
g: 0 Posted By: gr8f8
Views: 21 Replies: 0 Looking for a fee CFP with RSU and california real estate experience,
age 50, in california, looking to have basic(50-70Kper year) option for retirement(no pension,non gov. married only 1 income) by 54

Thought of three threads but will pose the three questions here, this is a one time situation in my life which has to be addressed by end of year

1)Tax related- RSUs vested and company took 54% to pay gov. (tagged to my income say 500K), by time that company let me sell My short term capital gains was actually a loss of 200K which I'm told I can only offset against other capital gains and not my income. Thus I have a 200K loss and I don't play in the stock market since 2007, and was told I'd be in AMT this year so home interest deduction and donations and persinal are out
I've got 4 rentals, 1 owned outright and 3 with mortgages(>50% equity, loans 4.25-4.5%).They make 30K a year which is covered by their depreciation, except if I'm in AMT. Which I've been told this year I am. Thinking of selling one with all about same value same area etc and would have gain of 170K. Then if one with mortgage pay off other two mortgages. This would recoup most of the loss this year(I usually have no capital gains.I believe the biggest increases in real estate are over for now until interest rates go back to normal but if we are in Japan situation, that can be a long time.

2)Been looking for an entry point with IRA that has been cash since 2007(say 200K), some thoughts since markets have gone down some,
I'm diversified into real estate already so thinking equities for 3-6 years
Have looked for a point to start to invest
Like dollar cost averaging since if his is the long slide(think Japan) I didn't buy at top and get more on way down, If it goes back up then at least got some at discount. If it goes flat not loosing anything
For time duration=D of reentering
Look at last 4 corrections take maximum duration=D
Frequency? No clue but for right now I'll say 10, so 20K per investment
a) Look at the best world wide dividend stocks which are available take top ten and buy 20K per Dmonths
b) do dividend ETF for us and then 1 for emerging markets, if dollar is strong(will take today as start) like now buy emerging if weaker buy US every Dmonths
Planning to convert to ROTH after retirement in 3-6 years if early retirement at lower tax base.

3) Have say 300K cash Owe ~250K on house at 4% since home deduction blown this year and probably next year(AMT) thinking of paying off as then I would be 1 step closer to retirement options in next 3-6 years.
I don't see any other investments, On the shows I listen to they always talk about getting 6-8% like it is guaranteed, at least this 4% is.

It's weird that my accountant told me that even though I have a short term capital loss of 200K I may owe a lot of taxes because of AMT this year. My with holding was based on my regular deductions

Any thoughts?
Discussion Deals
Should I take a new job in California?
Added on : Friday October 10th 2014 12:00:05 PM
g: 1 Posted By: me94
Views: 90 Replies: 5 My husband and I are both professionals living in the south. We make a decent living but both work long hours and have a large amount of student loan debt. I recently received a very competitiveoffer from a company in Orange County, California and am trying to see if there's anything I'm missing before we decide to make a move. Right now I work for a small family business and honestly I am the person holding the place together. The company in California is one my current company has done joint projects with in the past, and they want me to come and run their entire west coast operation. This company and my current company are in the same industry but operate in different states, so they do not compete (and to my knowledge, I don't have any "trade secrets" or clients that I would be taking).Still, if I move I will likely burn several bridges in my field and it would be difficult to work in the south or southeast for several years (it's a small field and everyone knows everyone else).

Financial situation:
Me - currently working. Salary: 90k, annual bonus usually around 25-40k.
Husband -currently working. Salary: 70k, annual bonus usually around 10-20k.
2children (3 yrs and 1 yr).
Assets: 2 cars, 2008Honda Accord, 2008 Honda Civic. Will probably replace the civic with a bigger car next year.
IRA: about $75k. No retirement plan at our current jobs.
Savings: about $60k in a CD ladder or savings.

Debt: Student loans, around $380k total. The rate is something like 7.4% (combined), and it's set by the government so we can't refi. Monthly payments are around $4000. No other debt.

Current expenses: Rent: $1050/month for a nice house in the country. This is very expensive for our area, but it's a nice house and we have not been able to qualify for a mortgage due to our DTI ratio. We pay $2400/month for a nanny (including employment taxes), as the only day cares here are religious and we are not members of any local churches. Utilities+phone is around $150 a month, and insurance is around 300.

The offer I have for the new job is $450,000 plus performance bonuses, and I may be able to negotiate that higher. I know the cost of living out west is higher, and taxes are higher (by my calculation, its around 4% higher), but I believe that even taking that into consideration making the move is a net financial positive. (More than that, the new company has several women in management and at the board level, and I feel there would be more room for promotion. I am the first and only woman working at my level at my current job, there are no women in senior management and no women partners.) I have some family in the LA area who have told me to budget around $4-5000 a month for rent on a nice four bedroom house.

My husband would have to quit his job and try and find something out west - that's a big unknown but honestly with the bump in salary, I figure he can take his time looking for new employment. A big factor for me is that the schools here are atrocious (something I can confirm, as I hire high school graduates for unskilled office jobs and they're barely literate). If we stayed here we'd absolutely have to pay for 18 years of private school for the kids. I have been told the Irvine school district has excellent schools. I am leaning towards finishing the year at my current job and moving after the baby is born in the spring but I thought I'd post this for FWF to see if there is anything I'm missing.
New User Question Deals
Problem with ELOAN ACH - Will not give CD money back
Added on : Friday October 10th 2014 08:00:16 AM
g: 0 Posted By: kdennispirate
Views: 78 Replies: 9 I have a CD that came due on October 8, 2014. E loan is claiming their ACH is "broken" and they will not ach the money to the account I have on file with them. They also say they can not wire the money and I can not pick up the money at a branch of banco populaire. I have never heard of such a thing. They will not say when they will their ach system will be fixed but I can call sometime next week. Of course I am worried. Has anyone else had this problem
Deposits Deals
How to Buy a Car With No Cash, No Credit and No Time?
Added on : Friday October 10th 2014 06:00:12 AM
g: 0 Posted By: mwa423
Views: 61 Replies: 7 A buddy of mine came to me a few weeks ago, drives a 2004 Mazda 3 with 161k miles and he is starting to think that putting additional money into it would be throwing good money after bad. We talked, I helped him map out a budget and the type of car payments he could afford thinking while his credit wasn't good, we could probably get him in somewhere at 10-15%. Not good, but hopefully re-fi out after a couple years of good payments. The reality is that he hasn't been able to get approved by any banks he has talked to (including USAA, Navy Fed, etc.). I'm not sure if the retail businesses just won't touch his level of credit, even though I know that banks like Wells Fargo Dealer Services take some rough subprime credit.

An additional problem is that he had (has?) a title loan on his current car, his plan was to just trade it in and let the dealer pay it off.

After a lot of searching, he found a few cars he was interested in, several older models which were under $5k but he thought were good buys. The obvious downside is most banks wouldn't accept those cars (due to age) as collateral on an auto loan (2001, 2002, 2003, etc.). He also doesn't have the cash in the bank to pay cash for these vehicles and has been turned down for personal loans from banks (including prosper and lendingclub).

Engine blew this weekend and the car is probably toast (don't know all the details). At this point, it is unlikely he has any significant amount of cash (probably less than $1,000 in his checking account), credit is poor (only one credit card with a $500 limit, $0 cash advance ability). I don't want to tell him to go hit a dealership and get screwed on 25% financing and get caught back in a debt trap and I really don't want him rolling to a buy here-pay here joint. But what other options can I suggest? The only one I can think of is to send him to adealership, talks like he'll pay cash, negotiate price and allows them to offer financing. See what they can get him.
Personal Finance Deals
Job Related Issues - How to Tackle?
Added on : Thursday October 09th 2014 05:00:04 PM
g: 0 Posted By: WalletFatKing
Views: 154 Replies: 2 Hello Members,

This forum has been very helpful for discovering many thing financially for me, though I have not been a member. Here I am with my own first post. I always appreciate your inputs. Please do not feel I am whining, I am just telling the truth to get some answers.

My Work Place:
-I work for a small sized federal agency as a mid level database dev/admin for their IT department. I am in early 30s.
-Too much nepotism at workplace. Unqualified friends of managers get promoted and gets 80% raises! (Ex: a 70 year old forever Admin Assistant was promoted to Development Architect etc and many more cases like this). No justification! tax dollars man!
- After recession, this year they expanded our department hiring 10 new IT managers which makes- 75% of department of managers, but they always have said no budget for technical folks. (we have 95 people in IT total)
-Built a tedious hierarchy where I have 8 levels to reach to the CIO. Each level manages just only 1 person - they just wanted to promote their friends.
-Our architects are clueless of how IT functions and applications are run in the real world. They just buy services from bad/worst consultants/contractors who are their friends.
-All non manager tech staff are pissed off at this mega mismanagement! but it's government and they are sticking to their job!

-They know that I am well qualified and smart, but they try to ignore me a lot! But come to me to get work done!
-My coworker (business analyst) (manager's friend+0 tech knowledge) was promoted to be my manager and created another layer in hierarchy. He manages only 1- Me! lol!
-He does not know much about databases, but now wants to know everything what I do. Asks to be cced in all e-mails and instructs that I have to pass all ideas through him before implementing.
-Sets up meeting every week and asks me to tell him about what I did and teach him to do things. Explicitly tells me that he wants to learn- off course will not give me any credit.
-tech people used to be part of all business meetings before, but now they do not include us techs in business meetings, but just create another meting with just us and them managers and ask us how to do things (no technical folks are included in meetings)
-Not really any manager/mentor at my work place to trust and ask for advise, but just co-workers in the same boat.
-All my co-workers feel this way, so it's just not me.

-Decent compensation ~$95k, with pension plan and healthcare.
-No raises in last 5 years for technical folks- we had to decrease our pay by 7% for mandatory retirement contribution- so net negative salary growth in last 5 years.
-work-life balance is awesome!
-Does not learn much at work as there are strong opposition to best practices, but just shortcuts suggested by bad consultants.
-should I find a job outside, would have to move (uproot wife's career) or be a consultant and travel a lot. We just had a baby!

-What can I do in my situation (more experienced people, please advise)
-Sucking up and staying at work- how do I tackle these problems? specifically when he asks me to teach him and cc him in all e-mails.
-How to stay positive in this environment? - I understand every work place has some politics, but it too much here with no reward.
-I have been in gov IT for 7 years now, is it time to move? I believe I still have not lost my skills!
-What skill sets should I acquire to go up the ladder? like PMP etc??
-Overall IT market is getting outsourced all over- should I change my line of work or get an MBA? scared of student loans and time off with no pay!

Thank you for your inputs.

New User Question Deals
Gift Taxes on Interest of $60k Interest-Free Loan?
Added on : Thursday October 09th 2014 04:00:10 PM
g: 0 Posted By: RussellJohnson
Views: 89 Replies: 1 Premise:
My aunt, who is a non-US citizen, has $60,000 sitting in her US bank account earning 0.01% APY. The money serves no purpose other than to sit there.

I have a savings account which earns 0.95% APY and I suggest that she park $60,000 in my account to earn the higher interest rate. She requires that I return only the principal amount in 3 years.

What taxes are owed and by who?
If this is an interest-free loan, am I subject to gift taxes incurred by the "gift interest"?
If so, don't I already pay taxes on earned interest income?
Where does the federal interest rate come into play here?

Question Deals
Financing Auction vehicles... Corp or Individual?
Added on : Thursday October 09th 2014 02:00:06 PM
g: 0 Posted By: mwarrior
Views: 60 Replies: 1 So I'm looking at some vehicles at an auction.. Need to get preapproved for them as there's a short period of time in which to pay.

Question is... Would it be better to finance corporately or personally? Minimum one vehicle but could be as high as 5 vehicles totalling approximately $300k. LTV would be 70% but Loan to Purchase Price probably 100%... Idea would be to flip a couple of them in the next month or two, but it's the interim financing issue.

Suggestions anybody?

Question Deals
Buying car at end of lease term - advice needed
Added on : Tuesday October 07th 2014 05:00:09 AM
g: 0 Posted By: peps2004
Views: 63 Replies: 1 Our car lease is ending in a few months and we're planning on buying it for the residual of approx $9k. Prior to leasing this car, we'd only ever bought cars worth k in cash, so both leasing and now buying a car for this amount is new to us.

I therefore want to make sure that we're doing all the right things, hence why I'm seeking help/advice from the FW community. I have a few questions that people here will hopefully be able to help with, plus I'll happily take any other advice or suggestions that people may have about the whole process:

​Auto loan - We're planning on getting a loan for the remaining amount. I've seen PenFed mentioned before as having good rates, so we'll be checking them, but are there any other lenders you'd recommend with good rates? (n.b. credit score is about 770). Is there some kind of comparison site that would list these?
Interest rate - Is it best to apply for several auto loans at the same time to see which will give the best interest rate? I'massuming that a score of 770 won't give us access to the best advertised rates, so don't want to only apply for one if there's a better deal out there, but I also don't want to apply for several if this will cause some kind of problem.
Residual - Will the company we're currently leasing from try to add any fees at the end if we want to buy? I've a feeling that due to our inexperience we didn't get the best possible terms on the lease originally, so want to make sure we don't pay for unnecessary fees at the end of the term.
Fees - What other fees should we be budgeting for? Sales tax? Title fees? How much would these usually be?

Anything else that I'm missing?
Personal Finance Deals
Sallie Mae Card free FICO error. Cause for concern?
Added on : Monday October 06th 2014 09:00:18 AM
g: 0 Posted By: tommames
Views: 0 Replies: 0 I recently checked my FICO score from my Sallie Mae account and was shocked to see that it was < 700 and reporting the reasons as "Serious Delinquency" and "Time since delinquency is too recent or unknown." From the history there, I noted that last month my FICO was > 800. No other data points as the SM card was recently acquired.I pulled my TU credit report and could find no evidence of any reported delinquency. I also did not find any evidence of a hard pull from Common Bond as has been reported in another thread here.

Should I write this off as probably a temporary glitch and wait to see if it shakes itself out by next month or do I need to take further action? I did firstcall TU and the agent there gave me a non-working number to contact about my score, but after pulling my credit report I didn't call TU back as I figured they probably can't help me anyway if I didn't see evidence of the problems noted onmy Sallie Mae Card account. So far, it has presented no issues with any of my accounts, and I have no plans to apply for any loans or new cards.
Personal Finance Deals
Student Loan Deferment Question
Added on : Sunday October 05th 2014 10:00:06 AM
g: 0 Posted By: hurricanedarby
Views: 53 Replies: 0 Hello all! I've searched the net trying to get the correct answer to this question and I thought I'd ask the pros. I am moving to Seattle in May 2015 and I'm wanting to find a job in my desired field (Human Resources). I only have minimal experience with Human Resources (one year) and I'm realizing that I may have to search for a few months and/or accept an entry level job in the field to get started. I realize I can defer my student loans, but would they be defered without interest acccuring (I have both subsidized and unsubsidized)? Is it considered a good enough reason that I'm holding our for a job in my field or do I have to be willing to accept any ol job? Thanks!
Penfed mortgage fees
Added on : Saturday October 04th 2014 07:00:07 PM
g: 0 Posted By: jonjones
Views: 64 Replies: 0 Penfed charges a 1% loan origination fee on home mortgages. Is this a way for them to charge 1% of the loan amount without calling it a point? I have not seen a loan origination fee from other lenders.

Question Deals
Buying a house with cash - IRS reporting question.
Added on : Saturday October 04th 2014 06:00:07 PM
g: 0 Posted By: fatwalletranger57
Views: 82 Replies: 0 My family is in the market to shop for real estate property, and we are looking to purchase with cash. We are looking at houses around 250k ~ 350k USD.

As new immigrants, we have about 100k USD savings (We are currently permanent resident. These savings are still in our foreign bank account) when we come to the state. And we have agreement with our relatives (non-US nationals) that they will loan us money interest free for the purchase.

I know that receiving gift in excess of certain amount of money has to be reported to IRS (Form 3520), what about loans from foreign person? What are the potential problems we may run into with IRS on purchases real estate properties with cash?

Personal Finance Deals
CommonBond Inquiry
Added on : Saturday October 04th 2014 06:00:08 AM
g: 0 Posted By: VerbalK
Views: 30 Replies: 0 Just noticed I had an inquiry added to my TU report (haven't checked the others) from CommonBond, which appears to be a student loan website. Anyone else get one of these?
Unauthorized hard credit inquiry - what should I do?
Added on : Saturday October 04th 2014 06:00:08 AM
g: 0 Posted By: s2ogal
Views: 45 Replies: 0 On my capital one credit card I get automatic alerts when there is a pull on my credit report.

I just received an alert of a hard credit pull from this companyhttps://commonbond.co/ which appears to be a student loan company.

I have three credit cards. No mortgage ever, no car loans ever, and paid off my student debt about two years ago. I have not applied for a loan in years.

I went through the form on the companies site and in order to apply for a loan someone would need my address, date of birth, and social. I have no idea how this information could have gotten out.

I tried calling the company but they are closed till Monday.

My questions are:

1. Is this almost 100% identity theft? Anything else it could be?

2. What should I do now?

Very troubled about this. Happy for any advice. Thanks,
Partnership scenario...
Added on : Friday October 03rd 2014 01:00:07 AM
g: 0 Posted By: Patieboy40
Views: 40 Replies: 0 Hi all -

Thought the FW community might be a good place to ask this. Opening a business with a partner , who will be hands off. It's a franchise. He's putting up 75% of the capital and 75% of the monthly overhead. Comes out to about $80K over the first year compared to my 25K. He'll get paid back first -- up to 75% of the revenue until payback which we anticipate will happen sometime around month 18.

At that point, he becomes a 15% owner of the business. We're trying to decide if this is the best approach or , should his addition cash contributions (above mine) be considered a note loan, etc.

Anyone have any experience in this type of agreement ? It's a very time consuming business - will be 50-60 hour weeks for at least the first few years.

Discussion Deals
g: 0 Posted By: BenH
Views: 410 Replies: 18 Hoping that someone in the real estate business, or who has gone through this recently, can give me some valid info.

I'm in an 8 unit condo building that currently has a 38% OOR.
Most of the remaining owners occupants are hoping to leave within the next couple years (me included) and they, along with some of the absentee-owners would like to sell.

From what I (think I ) know, the current lending policies are like this:
1) FHA loans require 50% OOR
2) Conventional loans require 70% OOR. Although this is a general rule and not all financial institutions follow it. Many are on a case by case

In either case, we're SOL based on these numbers.

I have read some other literature which suggests that Fannie Mae/Freddie Mac actually don't actually have a minimum OOR if you will be purchasing as your primary residence.

I'm looking for the facts on what is true and current.
Also looking for any tips in trying to sell a condo under these stipulations. To me, it basically mean that you are narrowing the purchaser pool to only those who can pay cash, or can get a conventional loan on a case-by-case basis (excellent credit, etc).
Personal Finance Deals
g: 0 Posted By: m8rhitbek
Views: 50 Replies: 0 Hi, I am trying to gauge the length of time it takes with PenFed. They say that it takes an average of 30 days. How long did it take you from the time you sent the ratified contract to the closing date? Something like this:http://www.fullofdeals.com/forums/finance/762736/m14217940/#m14217...

Personal Finance Deals
Question about a loan with a checking account
Added on : Sunday September 28th 2014 05:00:06 PM
g: 0 Posted By: minioutspoken
Views: 69 Replies: 0 Hello,

I recently got a loan through Meridian Bank. They gave me a lower interest rate if I opened a checking account with them to pay the loan, so i did that. I opened a checking account with them. Every month I direct deposit money in there, and every month my loan payment is taken from there. At the time, i was told in writing there would be no fees with this checking account. Again, I am only using it to pay my loan - I am not using ATM access, i dont have a debit card, no checks, no bill pay, im only using it to pay the loan.

Literally one day after I made my first loan payment, they sent me a letter saying my checking account is changing to something different, and unless I direct deposit $500/month I will have to pay fees. The loan is only $143/month, so this effectively makes the loan $500/month unless I want to pay fees, that i was told in writing i would never have to pay when i took out the loan.

My question is: Is this legal? If they promise in writing i wont have to pay any fees, can they change my checking account a month later and start charging me fees?

Since they changed the checking account, would I be able to close it?

Lastly, is this something I should bring up with their regulator? Does anyone know the bank regulator for Meridian Bank, so they are aware this bait and switch is going on?

Thanks in advance.
New User Question Deals
Oh no, another credit report question...
Added on : Saturday September 27th 2014 05:00:08 PM
g: 0 Posted By: pandarn
Views: 96 Replies: 1 Please direct me if there is another thread about this!

In 2012 I had a short sale on a home. I negotiated with the bank and am currently paying back a loan for a portion of the deficiency balance. The original amount of the new loan was $5XXX. I have made all payments on this new loan on time, and all payments have been for more than the required payment amount as I would like to get this paid off.

I had been monitoring my credit reports, no problems were noted with accounts from the bank involved, until I pulled all three credit reports a few days ago. They have now reported on Equifax that I have a foreclosure (I realize a short sale affects credit scores almost the same, but this is incorrect). Also, they are reporting an outstanding balance/past due balance of $4000, which actually is the amount charged off. The new loan, for the deficiency balance, is being reported as a charged off account, with the entire remaining balance showing as past due.

I have disputed these items with Equifax. Opinions wanted on whether the accounts are actually reported the proper way and I am just in a sad state of denial about it, or if they are incorrect as I believe, or maybe a mix of correct and incorrect.
Question Deals
FNMA quietly changed Short sale period in recent guidlines last month
Added on : Thursday September 25th 2014 06:00:12 AM
g: 0 Posted By: VoR
Views: 66 Replies: 2 FYI
Deed-in-lieu of Foreclosure and Preforeclosure Sale Message Updates
The waiting period requirements for borrowers who have had a previous deed-in-lieu of foreclosure or
preforeclosure sale are being updated to now require a four-year waiting period; though a two-year waiting
period will be permitted if the event was due to extenuating circumstances and the loan complies with all
requirements specific to a deed-in-lieu of foreclosure or a preforeclosure sale due to extenuating
circumstances, as specified in the Fannie Mae Selling Guide. The loan-to-value restrictions previously tied to
different waiting period timeframes are also being removed.
The deed-in-lieu of foreclosure and preforeclosure sale messages issued by DU will be updated to reflect this
change, and will specify the effective date of the updated waiting period requirements.


After just having a successful refi on residence after a SS 2+ years ago looks like now that I am being relocated getting a new home loan will be very difficult even with 25% down & scores ~700. Had to SS a rental after not being able to find a new tenant quickly. Had two incomes when we started renting it but that ended shortly after with a layoff. I think the layoff over 3 years ago will not qualify as extenuating circumstance and lenders I've spoke to said it is a very difficult proposition through FNMA. We've considered going with a Portfolio lender but it sounds like they don't want to get too far away from the new guidelines since they are so new.
Real Estate Deals
Why does PenFed push their 5/5 ARM so much?
Added on : Tuesday September 23rd 2014 03:00:06 PM
g: 0 Posted By: fryth
Views: 89 Replies: 2 It is pretty obvious that this is the product they want everyone to go into. Is it because the current fixed rate is too low for them make it worth their while holding your loan? So they hope you go with the 5/5, knowing that the rates will be going up down the road? But that doesn't make a lot of sense either as so many people will refi around the first 5 year rate reset.

It's just strange how other banks want people to be in fixed loans to avoid the problems in the housing crash with the ARMs.
Discussion Deals
$128,430.01 in student loans, what to do?
Added on : Monday September 22nd 2014 02:00:12 PM
g: -1 Posted By: CinderellaMan
Views: 178 Replies: 7 Is there an online forum that focuses on discussions of repayments of student loans?

Here is my situation (will simply ignore those who wish to bash my situation. Yes I know its that of a debt slave and yes I would do things differently if were to do again)

Income of 50,000 and spousal income of 30,000 per year before taxes. Here are the monthly options I'm getting for repayment:

Graduated 498.46
Income Based: 101.70
Standard: 1,159.84
Extended Standard: 789.86
Extended Graduated: 562.48
Income Contingent: 368.14

Income based is of course tempting but something tells me there must be a catch hidden to it in the future.

These are the basic pros/cons SUPPLIED BY THE LENDER:

Graduated:This plan sets low monthly payments that gradually increase every two years.Advantages

When making graduated payments, you begin repaying your loans at a lower payment amount than on the Standard Repayment Plan.
Your payment amount will increase every two years; however, your highest payment will never be larger than three times the amount of your first payment. For example, if your payment started out at $50 for the first two years, increased to $65 the next two years, after 8 years, the highest payment would be no more than $150.


The amount of interest paid over the life of the loan is higher with this option compared to the Standard Repayment Plan.

Income Based:Your monthly payment amount is based on a formula that uses your Adjusted Gross Income, total indebtedness, and family size. Any balance remaining after 20 or 25 years (depending on your loan term) on an IBR plan is forgiven.Advantages

This payment plan was designed for customers whose student loan debt exceeds their annual income.
Designed to make your (and your spouses if applicable) monthly student loan payments more closely match your income.


Every 12 months, to re-evaluate the payment amount, you must certify your adjusted gross income and family size.
If you qualify, you may pay more in interest than those who repay their loan under the Standard Repayment Pl

Standard:This plan has set scheduled monthly payments for the life of the loan.Advantages

Standard is the most commonly chosen repayment plan.
The minimum monthly payment is determined by the amount of the loan and the length of the repayment period.
Generally, this plan is the most economical method of repayment.


This plan typically has the highest monthly payment amount; however, it allows you to pay off your loan faster, saving you money.

Extended Standard:If you meet the qualification requirements, a Standard or Graduated plan can be set up with the difference being that the repayment term will be up to 25 years.Advantages

The Extended Repayment Plan will be used in conjunction with either the Standard or Graduated Repayment Plan and will have a repayment term of up to 25 years.
The Extended Repayment Plan can result in a much lower monthly payment amount.


This plan increases the total amount of interest paid over the life of the loan.

Extended Graduate:If you meet the qualification requirements, a Standard or Graduated plan can be set up with the difference being that the repayment term will be up to 25 years.Advantages

The Extended Repayment Plan will be used in conjunction with either the Standard or Graduated Repayment Plan and will have a repayment term of up to 25 years.
The Extended Repayment Plan can result in a much lower monthly payment amount.


This plan increases the total amount of interest paid over the life of the loan.

Income Contingent:Your monthly payment is calculated based on your Adjusted Gross Income (and your spouses Adjusted Gross Income if you are married and filed a joint return or request joint repayment), family size, and the total amount of your outstanding eligible Direct Loans.Advantages

This payment plan was designed for customers whose student loan debt exceeds their annual income.
Under this repayment plan the repayment term may be extended to up to 25 years.


If you qualify, you may pay more in interest than those who repay their loan under the Standard Repayment Plan.

Question Deals
Lending money to a Real Estate Investor?
Added on : Monday September 22nd 2014 08:00:14 AM
g: 0 Posted By: ssquare
Views: 91 Replies: 2 Wanted to get your opinion on what all one should be thinking about if one is loaning some amount to a real estate professional (< 40K). I have not done it before, but I have a lead currently that someone interested in borrowing money for a year at 10% APY. As a collateral, second lien on a house owned by the professional is being offered.

I don't really have any insight into which project or how this money will be used by the investor. The questions that comes to mind is

1. Is a simple promissory note and second lien provide good enough security?
2. If you were offered the same deal, would you take it?
3. Any good/bad experiences
4. What kind of questions one should be asking before proceeding with something like this?
5. A one year loan at 10% in current environment is obviously a very high risk loan. Is the collateral quality good enough to minimize the risk? Are lawsuits too messy/expensive that it is not a practical option for this sum of money if things go bad.

Appreciate your feedback.
Discussion Deals
Getting a TransUnion Credit Report after auto loan denial
Added on : Monday September 22nd 2014 04:00:11 AM
g: 0 Posted By: Savyasachi
Views: 32 Replies: 0 Hello folks,

First time new auto shopper, applied for an auto loan with Chase and they denied it (in spite of pretty good credit score). They sent a letter stating I can get a free credit report from Transunion. I tried getting it online and their screwed up website could not verify my identity (this REALLY surprises me). This has happened in the past too, when I tried to get free annual credit report. Since then, I ALWAYS send a mail to get one.

I called the number provided by Chase on the letter and got a report request rolling. During this phone call, it didn't check the eligibility for a credit report, so I am not too sure if it calculated it as a free annual credit report or as a consequence of auto loan denial. (I get my annual credit reports from all agencies, with a margin of 4 months.) FWIW, I signed up on their website, as it was mandatory to proceed to get the free report, as a result of auto loan denial (I had to enter how I qualify for it).

My questions are
- How do I figure out what TransUnion calculated it as, a free annual credit report or a credit report as a result of auto loan denial?
- I made an account on their website. A quick look, I didn't find any way to delete it. I was pretty much sure while signing up that this is a one way road, still any idea if I can delete the account?

Thanks in advance.
Personal Finance Deals
Is buying land a good investment?
Added on : Sunday September 21st 2014 02:00:10 PM
g: 0 Posted By: butler21
Views: 45 Replies: 1 I graduate college and have been working for approximately 8 months. I was able to land a great job and have been looking into buying some investment property/hunting land. While browsing I came across about 43 acres for sale in a prime hunting location. They are asking a hair over $63,000 for the property. 22 of the 43 acres have been clear cut about 3-4 years ago. The price per acre comes out to be around $1,400. All the property around here is selling for north of $2,300. I come to you guys to see if this is a good idea. I am on the road a lot for work and won't be stable for a while so I don't plan on buying a home anytime soon. I was thinking about putting $5k down on the property and financing it over 15 years. This would give me a rough note around $5-600 a month. The only other loans that i currently have are a student loan that has a balance of around $7,000 and a truck loan that has a balance around $26,000. I currently have $4,000 in savings and $2,000 in checking. (I just put $10,000 down on a new truck) I currently make approximately $1,800-$2,000 a week and $7,500-$8,000 a month. I rent an apartment for $900 a month and after all bills and notes i usually end up paying around $2,000 a month. Should I jump on this property? I feel it is a great investment. I will have a great place to hunt and spend weekends in the woods and also make a profit in the long run. The feel the reason the property is selling so low is due to it just being clear cut. I plan to let it grow back up and then sell the timber when its ready in 10-15 years. I came to this site to find some helpful hints and some honest opinions. I know I don't have much in my savings yet because I just bought a new truck but I feel I am financially stable enough to put down some money on this property by the end of the year. What do y'all think?
g: 0 Posted By: wackyrabbit
Views: 43 Replies: 0 I have a second mortgage on my house that secures a business loan. I am in the process of refinancing and requested that the second loan be subordinated and kept the same on the new first mortgage.

My business banker has done shady stuff in the past and right now we are stuck with her until we can switch banks. He wont approve subordination unless we jump through some hoops most are normal but is letting him see the settlement statement on this new 1st mortgage normal procedure? I don't want him to leverage this information against us and hurt the refinance/hurt the busiess loan or try calling something in when he has no power to (it is an sba loan)..
Question Deals
taking loan from one's own 401
Added on : Wednesday September 17th 2014 05:00:09 PM
g: 0 Posted By: kashaf
Views: 36 Replies: 1 I am in financial crisis and one of my friend mentioned that I can take money out of my 401 as loan which I have to pay back and all the interest which I would pay will go back to my 401.I don't understand ,Can somebody please help me in this regard

Question Deals
g: 0 Posted By: whatmary
Views: 145 Replies: 0 http://blogs.wsj.com/totalreturn/2014/09/16/student-loan-borrowe...

interesting.Citizens Financial Groupannounced on Tuesday that it is accepting applications from both parent and student holders of federal loans to refinance into private loans at the Providence, R.I.-based bank. Some borrowers who have good credit scores could get a lower interest rate than what theyre currently paying.Citizens fixed interest rates start as low as 4.74%, while variable-rate loans, whose rates can change each month, have rates as low as 2.31%. The lowest rates are given to borrowers with very high credit scores and long-term employment and who also have a Citizens checking account and set up automatic bill payments for their loan.
General Economics Deals
Is taking out a home equity loan a good way to pay off credit card debt?
Added on : Tuesday September 16th 2014 06:00:15 AM
g: 0 Posted By: MarkRobinson
Views: 140 Replies: 7 Is taking out a home equity loan a good way to pay off credit card debt?
General Economics Deals
Mini AOR & New Car Loan
Added on : Monday September 15th 2014 12:00:11 PM
g: 0 Posted By: isamerican
Views: 124 Replies: 4 HI all,

Been here on FB a long time and have done AOR's in years past, but my gf is looking to do one and some advice is greatly appreciated.

We are looking at getting a used car loan for $25,000. Only have two CC now AMEX Blue at $10,500 and credit union card at $1,400.

Credit Score = 655
Debt/Income % = 5%
Income =$78,000
Student Loans = $52,000

Do have past settlements on account 5 years, everything else is current and closed.

No car loans at this time.

Can we do a Mini AOR and CAR loan at the same time? Or should we wait on AOR, just curious on what we should try to do.

Thank you


FW on!
Question Deals
Any advice for someone with large credit and high interest?
Added on : Monday September 15th 2014 12:00:11 PM
g: 0 Posted By: thebeeskness
Views: 131 Replies: 0 Hello,

My friend is graduating this semester with a Ph.d and he told he would be starting on paying back his loans. He said right now he pays about $400 monthly just for interest. I suggested that he moves all the credit to a one bank with the lowest possible interest.

What do you think? Do you have any recommendations?

Thank you!
New User Question Deals
Need help with current housing situation
Added on : Monday September 15th 2014 08:00:14 AM
g: 0 Posted By: averageJoeonFW
Views: 121 Replies: 0 Hello all,First of all, I want to thank everyone here for making FW (especially the Finance forum) such a great place for me to check every other hour or so.I have somewhat of a complicated housing issues that I need your advice on, Ill try to keep it as short as possible, but please let me know if you need more details in any parts.

I currently have 2 houses with mortgage on (both under my name:

House 1: bought in early 2011, FHA loan, 3.75% interest rate, 3.5% down, currently has $135K left. Current market value of around $210K-
House 2: bought late 2012, Conventional loan, 3.85% interest rate, 5% down, currently has about $175K, second mortgage (home equity) of $26K, current market value of around $255K

My wife and live in house 2, my parents + brothers family + sister lives in house 1.I pay the mortgage for house 2, brother pays mortgage for house 1. The family moved down to my area from a high cost living area to open up their own business, so I helped them with a place to stay. On this house 1, I put about $5K for down (money from my mom). Our plan was to take advantage of the housing market back then, the price was so good, plus the interest rate was low, thats why I bought the house under my name as my brother still had his house back then so he couldnt afford the second house.Now, his house was sold 2 years ago, business is up and running for about 2.5 years, but his credit is now under 600 because of all the current credit cards with balance (he did have 2 late payments also last year). His credit was 800+ range back in 2011.

We are trying to do whats the best way to have the house transfer over to my brothers name?

I know FHA allows other people to assume the loan, providing that the income/credit allow him (already check with Wellsfargo, the mortgage provider), however, with his current credit and about $30K credit card debt, I am sure he wont get approved. His income is about $2,500/month pretax. Business income is about $100-$120K per year (restaurant business in the past 2 years).My wild thought would be taking another equity loan against house 1, pay off his credit card to free up his credit again, then by the time its going back up to an acceptable level by the bank (as well as his income), then have it transferred over to his name. The reason I bring this up is because were planning on to move, so well be ending up selling our house (house 2) and hope to get my name off house 1 as well so I dont want to do anything else related to my credit unless I have to.

Another additional note: my mom and dad work at the same business, they do receive a small income also so for the purpose of income qualification, if needed, we can include them as well ($1100/month each, basic credit, 1-2 credit cards with about 2 years history).
Personal Finance Deals
Having a family member help with down payment of a home in bay area.
Added on : Thursday September 11th 2014 12:00:23 PM
g: 0 Posted By: CaliforniaDriver
Views: 155 Replies: 7 Hello,
Family wants to help my wife and I buy our first home in the bay area.
Age: 28
Household income: $180k
Debt: Student loans about $20k
Car loan: $22k
Money for down payment: $60k

So as most of you know that bay area homes are crazy high priced but we dont foresee this to crash anytime soon. We would like to purchase a home since rent is around $2500 and feel like we are throwing it away every month. Our family wants to help but instead of a traditional loan and paying them back. We thought that maybe they can invest their part of the down payment with us. What I mean by that is if they put down $60k and match our $60k, we can put down 20% on a home. If we sell it in 5, 10, or 20 years, we would give them back the $60k along with the capital gains that would have come out of the $60k.

Any downfall with this plan? Worst case scenario is that we payback my family member the original $60k if the house doesnt go up in value. So no matter what, my family member would just lose out on opportunity cost of the interest they would receive on $60k but we will make sure they get it back. Are you able to designate title percentages on a home? I never owned one before. I just wonder if there is a way to designate like 10% of the title to my family member.
Real Estate Deals
Student Loan Buyout Question
Added on : Monday September 08th 2014 08:00:13 AM
g: 0 Posted By: laxjustine
Views: 158 Replies: 3 I have about a $20,000 Private Student loan with Sallie Mae with a whopping 9.25% interest rate. Because of the type of loan it is, SM said there is no way for me to lower my monthly payments, which I cannot afford and they will not allow me to refinance. Does anyone have any advice on how to potentially buyout my loan? I called my local bank and they didn't have any loan options for me so I am just looking for any and all optionsat this point. Thanks!
Personal Finance Deals
Pension Cashout? Transfer to IRA? or Let it ride?
Added on : Saturday September 06th 2014 12:00:06 PM
g: 0 Posted By: pensioncashout
Views: 2 Replies: 0 Hi forum,

Thanks in advance for your thoughts. I worked for a company for 5 years and qualify for a pension. The amount of my cash out offer is not a huge amount ($16K), but given that I'm only 35, I know I'll subjected to a 10% early penalty fee plus taxes unless I roll-it-over to an IRA or let it ride to retirement age. If I wait until full retirement age, my monthly payment will be about $460 and it includes a 100% joint survivor clause. At today's dollars, assuming inflation of 2.5%, that cuts the monthly payment by ~50%, which isn't a whole lot.

A few additional details:

401K - $320K in mine $100K in my wife's (she's 31)
Liquidity - $185K
Equity in home currently being built - $250K
No credit card debt
No other debts except for some school loans my wife has ($30K) at very low interest rates

I'm in a situation that I don't need the money now, but as we're building a home, I'm tempted to rollover the pension lump sum to an IRA and decrease my 401K contributions to the minimum required to maximize my company's match in order to "recover" the full lump sum amount. Once the construction of the home is completed (6 to 8 months), we're going to refinance the home to a permanent loan. I'll likely keep about $100K in liquidity for emergencies (I'm conservative) and that will leave ~$85K liquidity to use + savings growth from lower 401K contributions + organic savings until then to further reduce the amount we need to borrow. Assuming today's interest rates don't change much, the lump sump would essentially get me a guaranteed effective 4%+ growth since I'd be using it to reduce my home loan amount. Am I looking at this right? What would you do in my situation? Pension Cashout? Transfer to IRA? or Let it ride? Any thoughts are greatly appreciated! Thanks!

New User Question Deals
Rental Property or Commercial Property or..?
Added on : Friday September 05th 2014 06:00:12 AM
g: 0 Posted By: Komrade
Views: 101 Replies: 1 I bought a property that has a small trailer park and a small store that I've been renovating and plan to run as a business.
I put a lot of cash into store renovations (more than initially anticipated), and it was initially financed via owners (50% down) and would like to get some Cash Back out of it.
I called a bank I already been dealing with for other loans (they're a local credit union), and they said they treat anything that brings income as commercial property.
A commercial property has a max loan term of 20 years, but it's the 5/1 ARM (under 5%) that worries me.
Is that what I should be expecting from any other bank? Should I be putting a different spin on property description when I talk to banks?


Personal Finance Deals
1.99% Unsecured "AnythingLoan"
Added on : Friday September 05th 2014 06:00:12 AM
g: 0 Posted By: LordB
Views: 153 Replies: 1 Found this over at bogleheads. Have not tried myself, but apprently https://www.lightstream.com/ offers it. They say it is for car loans, but they do not ask for VIN # and it appears to be an unsecured loan.

Bogleheads discussion with further info: http://www.bogleheads.org/forum/viewtopic.php?f=2&t=146234&newpo...
Deal Deals
I need a loan of a credit card
Added on : Thursday September 04th 2014 02:00:09 PM
g: 0 Posted By: emmawilliams
Views: 21 Replies: 2 How can I get a loan with bad credit. I need about $3,000.
New User Question Deals
Car Loan or HELOC?
Added on : Wednesday September 03rd 2014 07:00:07 AM
g: 0 Posted By: nic3456
Views: 97 Replies: 1 Going to have a cash flow crunch for the next 4-5 months and considering my options. I would prefer to get a HELOC to use as needed however I live in Texas and am capped at 80% LTV. I can get what I need as my mortgage is only at about 70% LTV. Problem is it looks like all the good HELOC deals are no more (at least in TX). The best seems to be Penfed, but I would have to pay $300-$500 for an appraisal and am not certain how long I will be in this house (so I could have to pay closing costs if I move). Their rate is 3.75% and is tax deductible. I was considering just getting a car loan (currently paid off). I can get a loan for ~2.5-3%%, but its not tax deductible. I'm torn on which option to take - I like the flexibility of the HELOC, but seems like the car loan will more than likely be cheaper. Thoughts?
Personal Finance Deals
Family Financial Trouble - In Law Home Foreclosure
Added on : Friday August 29th 2014 09:00:13 AM
g: -2 Posted By: altidagain
Views: 173 Replies: 8 Good afternoon. Yes, this is an alternate ID. Yes, I am a senior member and have been around for over 10 years and continue to read the forums daily. I love the members here and the valuable advice shared. That being said, I would like some objective opinions of my current family situation. It is always difficult to think clearly and rationally when you and your family are involved. I apologize if any details are sketchy as this is a fluid situation and I'm hearing most of it second and third hand.

Summary: Sister/Brother In-laws are in default, which will place a lien on my father in-laws property. They are requesting financial assistance from my family.

My in laws own ~60 acres in the rural Midwest. They live on this property. They have carved off deeds of land to their children who have a interest in living and building on the land. One sibling "A" was deeded some property and now owns 7 acres. At some point in the last 15 years "A" borrowed against the property to build a construct a house on the said 7 acres. The father who owns the rest of the land cosigned (gasp) for this loan. The loan for "A's" property is now in default and they have until Tuesday to pay in full. The loan has a balance of approximately $65k on a property value of approximately $70k. It is the family's understanding that the rest of the acreage and property is at risk with a lien since the father cosigned for the loan. In addition the way the property is designed, my father in law doesn't want the "disturbance" of having other people using his access road and living on what was his property.

Of course my wife came to me to help. My first reaction was no, no, and no again. I don't want to get involved. We have already contributed significantly to "A" before to prevent this from happening about a year ago. We helped our one time. I think my wife is in agreement, except due to the impact of her father and his property being involved. I know we *shouldn't* help. However, if I were to consider helping I would only do it to help her father and protect my immediate family's assets. That being said here are the options I'm wrestling with:

Do nothing - we helped you once, why are we to believe this will be last time you need help. (my favorite)

Would consider bidding a diminished price at an auction

Provide $20k to her father to place as a down payment on a $45k loan thathe would finance on "A's" property(less capital invested, but you may as well consider that a gift as I don't own anything) - I considered asking him to update the his will to reflect this loan
Obtain a mortgage for the property, and offer the bank something south of $65k (protects her dad and stops foreclosure - and something to show for our investment)

I'm not sure if the bank would except anything less, could I really obtain a loan remotely over a holiday weekend in enough time to stop the foreclosure?
I would want to kick "A" out, which doesn't make the family situation much easier but it does help her dad
My wife would rather ask for a monthly rent payment from "A"- my concern is that this will happen again, if "A" won't pay the bank they certainly are going to expect a long leash with us - then you start over with the emotional dilemma of eviction

In both scenarios I'm not sure her family would be supportive if immediate eviction or eviction over missed payments. Thus why I don't want to get involved as I can't control the situation.
Additionally I worry about the liability factor, there are ponds on the property and I don't believe the house was built to code. Hunting also takes place on the property. Heaven forbid, but I'm worried if something goes wrong on the land or in the housethat my immediate family would be held liable.

What am I missing or not considering?

I appreciate the help in advance. I will do my best to answer/track down any questions that I can. Fun Friday...

Personal Finance Deals
prepaying mortgage
Added on : Wednesday August 27th 2014 08:01:02 PM
g: 0 Posted By: RagingBull
Views: 23 Replies: 0 I was thinking every month for my mortage I apply more payments towards the principal. If I do so would that reduce the interest portion of the mortgage the following month or is that amount preset for life of loan? I have mortgage with wells fargo
Real Estate Deals
Strategy to invest extra cash after essentials are done?
Added on : Wednesday August 27th 2014 01:00:44 PM
g: 0 Posted By: sailwind
Views: 77 Replies: 1 Thanks to the board suggestions, I've got most of my financial planning done: 1 year of rainy day fund, 401k maxed yearly, some iBonds, no loans except for mortgage. Now I have some extra funds sitting in a savings account earning a paltry 0.70%.

What's a good strategy for investing these extra liquid funds? Retirement choices is easy in comparison, since the long horizon make vanguard index funds a straightforward selection. For these shorter term investments, other than laddering CDs what else do you guys do?

Question Deals
Secured Loan. Why? When? How?
Added on : Wednesday August 27th 2014 02:01:14 AM
g: 0 Posted By: DavidSpes
Views: 20 Replies: 0 Can I get a secured loan if I have bad credit? Do secured loans have early repayment charges? Are Secured loans used for debt consolidation?
Credit Deals
Advice for Student Loan Overage Check
Added on : Tuesday August 26th 2014 07:01:08 AM
g: 0 Posted By: dwchief
Views: 107 Replies: 1 Hi all -
Pretty sure I know the answer to this one but wanted to run it by some others. Just got my loan overage money, which is about 6K. This is 4x my normal overage amount I have been getting. My first thought is to just return the check and get the loan reduced. I'm at 6%, deferred right now. This is what I am leaning towards.

Wanted to get your opinion on other options:

Use this to pay off $130/month loan. This is a 0% interest, equal monthly payment, furniture loan. About3K left on the loan. Could payoff and return/pay down the balance of the check guys.
Use this, and sell Employee Stock Purchase Plan stock to payoff car. Finally convinced wife we needed to reduce car payments. Couldn't get her to go the Crown Vic route but reduced our monthly by about $200 + small insurance reduction. Should have enough money between the two to fully pay off car, net $215 back, could also "return" the warranty on the car (or just the GAP portion) + reduced insurance. Oregon requires full coverage for cars you have a loan on.

Edit for stock note. My $2500 investment got me an extra 16% due to the plan. Stock currently worth $3,260, haven't held for a year yet so paying full tax bracket %, currently at 1 year high and hovering there.


Let me know what you think everyone, thanks for any input.
Personal Finance Deals
investment property
Added on : Monday August 25th 2014 11:00:14 AM
g: 0 Posted By: somebodyriffic
Views: 16 Replies: 0 Hello,

I'm a 24 year old male and bought a condo through a a condo through a county purchase program. I paid $93,500 for it 2 years ago, and Put around 32,000 down on it. I did a 15 year loan with a 3.5% rate and my mortgage is currently around 600 a month. I have a roommate that pays $700 a month. I currently owe $55K on it. I am starting to look into buying another property, the only problem is I don't have the downpayment (I've read that most places like to see at least 20% put down. I'm thinking about doing a home equity loan to borrow enough to get to the down payment on a place (I'd probably buy in the low $200K range, maybe 250 tops). My salary is only $44,000 a year but I make about 56 with my over time (some garunteed, but not actually garunteed on paper for a loan). Any input onto the process and what I should be looking at doing exactly?

New User Question Deals
Do you NEED a branch?
Added on : Friday August 22nd 2014 04:00:58 PM
g: 0 Posted By: timgodsil
Views: 143 Replies: 10 I bank online, rarely visit branches, use my card to get cash at Free ATMs. If I have cash to deposit, I have a checking account with a CU that has "shared branching" which allows me to deposit/withdraw at over 5,000 credit union branches.

But the bank I bank with now (US Bank), does not have a branch for over 50 miles from me, and where I plan on moving to soon, 250 miles.

Credit cards can be applied for online, but things like auto loans and mortgages, does one need a physical branch to go to?
Discussion Deals
Best strategy for accumulating wealth
Added on : Thursday August 21st 2014 09:00:08 AM
g: 0 Posted By: deeder
Views: 2 Replies: 0 Have some money in savings and wanted to buy a home but I want the highest rate possible on the money as well as the lowest loan fees as capital is needed to build wealth.

is there an ideal place to store money? Banks give low rates and high loan rates. I am looking for the opposite: high yield investments and low loan rates to build wealth.

Any suggestions?
Needing advice on starting a business.
Added on : Wednesday August 20th 2014 11:00:06 AM
g: 0 Posted By: timgodsil
Views: 137 Replies: 9 I've talked to quite a few people, and get mixed answers.

I am wanting to start a pawn shop. I figure I will need about 50k-80k in funding. 10k for renting a retail building for a few months, 10k for a computer, some shelving, etc, and the rest capital to loan money (pawn).

However, some people tell me that I won't get a loan without a college degree, and others tell me banks won't give you the time of day if you have student loans.

I would hate to go to college, get 40k in debt from loans, and have to work to get back to zero, all to find out I didn't need a degree for a loan.

Does education help loan funding, or is it purely credit?
New User Question Deals
Did not pay estimated taxes - now what?
Added on : Tuesday August 19th 2014 09:00:07 AM
g: 0 Posted By: LagerChamp
Views: 0 Replies: 0 I made a little "too much" money last year, because I still had employment income and also started a business that was profitable in 2013. So in April 2014, TurboTax printed 4 estimated tax coupons for me, with the first one being due, I believe, in April and the second one 3 months after that. It is now end of August, and I still haven't mailed any of those vouchers, for several of reasons, some of which are: 1) I quit my regular job and am now living off the income from the business, so there is no more W2 income (i.e. the estimate amount is way off);2) My business income is down from last year (although still profitable); 3) I was short on cash due to additional loans taken to invest in the business.

In the end, I'm pretty sure that I still owe estimated taxes, because my business did make money, and I still haven't paid a dime in taxes for 2014. I have two questions:

1. What will be the consequences if I continue to sit on my ass until April 2015 and pay all the taxes then? Interest, fines, and/or jail?
2. If I do decide to pay everything I owe up until now, which vouchers do I mail right now? The April one? Just the second one with combined amounts from vouchers 1 and 2? Will there still be penalties if I pay everything now? Can I take the liberty of adjusting the amounts or does it have to be whatever TurboTax printed on the vouchers?
Credit markets opening back up?
Added on : Sunday August 17th 2014 08:00:07 AM
g: 0 Posted By: Tyoneon2
Views: 90 Replies: 0 Here we go again: stated income loansare back. 0% no-fee BTis back. CC sign-on bonuses are up. Good for us, but what about for the rest of the country? This thread is not meantto discuss specific deals, because those are all well-covered. Just postif you have any opinion of the general state of the credit market, what it means,and where it's headed, or maybe just a quick note about the combined results of a recent AOR compared to a year or two ago. I think it's easier now. My general experience this week:Mini-AORyielded 5 CCs with 10k+CLs instant,onedeferred, one declined. Seven new checking accounts, buttwo arefrozen. Not sure I could have done that 2 years ago. They were busy trying to shut me down.

Discussion Deals
2012 Kia Sedona Van problem
Added on : Sunday August 17th 2014 02:00:05 AM
g: 0 Posted By: jhuflyer
Views: 0 Replies: 0 Timeline:

Nov 2011 (11 miles): Purchased 2012 Kia Sedona brand new
Dec 2011 backup camera inop (550 miles): Required three trips to dealer (initial diagnosis, replace backup camera, replace rearview mirror/LCD assembly)
Sep 2013 backup camera inop (17600 miles): Required two trips to dealer (initial diagnosis,replace rearview mirror/LCD assembly)
Aug 2014 backup camera inop (27000 miles): Required two trips to dealer (initial diagnosis,replace rearview mirror/LCD assembly)
Aug 2014 backup camera inop (27050 miles): So far required one trip to dealer

Backup camera works intermittently. This has required us to "call an audible" typically while running errands and sit at the dealer's repair facility for them to verify we are telling the truth and do a diagnostic themselves. Of course this isn't a typical part kept on site, so this requires a return trip approximately 1 - 2 weeks later (this part and repair requires authorization from the Kia district manager).

My issues are that Kia does not provide a loaner vehicle during this time, it's getting "expensive" taking half-days of vacation off, and the fact that the repair seems to be a short-term fix -- not a long term solution.

Do I/Can I:

1) Suck it up, because I'm cheap and bought a Kia?
2) Complain to random strangers on the internet and then do #1?
3) Escalate the problem to Kia corporate?
4) Use some state law/act as leverage to get a long term fix?
5) Ask/demand some recompense?


Questions about student loan consolidation
Added on : Saturday August 16th 2014 07:00:12 PM
g: 0 Posted By: SyZpuzzler
Views: 81 Replies: 0 Hi,

My credit card will be paid off in about 3-4 months, and I'm currently at a score of 747 on Credit Karma, not sure what this translates to for FICO: http://i.imgur.com/c3uXQpX.png

I have some questions about student loan consolidation as that is potentially next on the list

1) Is it worth it to consolidate about $27k worth of student loan debt, if at least 60% is at 5.9% or 6.9% interest? My thinking is, it lowers the interest each month, lowers the minimum payment each month, because it lengthens the term of repayment and they figure they'll make interest by you just doing the minimum each month. But if your goal is to pay it off asap, wouldn't you end up saving money as you're being charged less interest and your goal is to get the 27k to 0k?

2) How do minimum payments on fix year loans work? For example, if you only pay the minimum on your credit card each month you'll pretty much never get it paid down due to interest. But if you have a fixed 5, 10, 30 year loan, it is eventually paid off if you make minimum payments, correct? (This would tie in to my 8k car loan at 1.9% interest which I clearly just want to pay the minimum on, if this is true)

3) Is it worth it to get out of student debt asap at the cost of potentially entering the stock market? Should I set aside maybe $100 each month to invest there? I want my liabilities shrinking and my assets growing


Personal Finance Deals
Inside the Dark, Lucrative World of Consumer Debt Collection
Added on : Friday August 15th 2014 07:00:07 AM
g: 0 Posted By: NEDeals
Views: 59 Replies: 1 " ...These huge, routine sell-offs have created a vast market for unpaid debts not just credit-card debts but also auto loans, medical loans, gym fees, payday loans, overdue cellphone tabs, old utility bills, delinquent book-club accounts. The scale is breathtaking. From 2006 to 2009, for example, the nations top nine debt buyers purchased almost 90 million consumer accounts with more than $140 billion in face value. And they bought at a steep discount. On average, they paid just 4.5 cents on the dollar. These debt buyers collect what they can and then sell the remaining accounts to other buyers, and so on. Those who trade in such debt call it paper. That was Aaron Siegels business.

It turned out to be a good one. Siegel quickly discovered that when he bought the right kind of paper, the profits were astronomical. "

Full Article
Discussion Deals
g: 0 Posted By: bighitter
Views: 38 Replies: 0 According to this recent article atBloomberg "An employee who completes $1.6 million of loans in a month would earn a base commission of $11,200, up from $10,800

This compensation to residential loan officers for filling out an application and soliciting Realtors to steer their buyers to Wells Fargo for home loans seems excessive to me. I'm not singling out Wells Fargo for criticism -- I would imagine all the banks are offering similar compensation to their residential loan staff.

Based upon this quote from the article about incentives from other Wells Fargo employees, probably not a good idea to rely on any bank employee's recommendation about good loan programs without shopping around independently on your own behalf.
"Thats putting more emphasis on loan officers who draw referrals from local real estate agents, home builders and even employees within their organization. The banks plan increases the incentive for referrals from other Wells Fargo employees."
Discussion Deals
Accelerate Auto Payoffs or Invest?
Added on : Thursday August 14th 2014 02:00:04 AM
g: 0 Posted By: LeonSandcastle
Views: 10 Replies: 0 I'm having a tough time making up my mind on this. Recently, I've come to the conclusion that when financing a car, I won't go longer than 3 years in the future. However, I currently have 2 car loans, with 4.5 and 5 years remaining, at 2.90% and 2.69% respectively.

I have the ability to pay double on one loan, pay it off quickly, and then apply the money to the other loan and have them both paid off in 3 years, or I could pay them off as scheduled within 5 years, and have that extra $600/mo to invest.

I know a lot of the financial gurus suggest paying off car loans as quickly as possible, but I'm not sure if that advice makes as much sense when the money is borrowed at less than 3%.

How would you approach it?
Question Deals
How to fix an error on credit report?
Added on : Wednesday August 13th 2014 05:00:06 PM
g: 0 Posted By: FWFGirl
Views: 38 Replies: 0 Not an alternate ID, first time posting about an issue and would very much appreciate any advices.

Over the weekend, I applied for a credit card and was rejected due to delinquent accounts. Confused, I called the credit card company and they said my report shows 2 accounts delinquent. Now I am even more confused as I check my credit via credit karma and Trans Union regularly (I have access to run this for free). Turns out, these negative accounts only shows up on Experian ONLY. My Equifax and Trans Union were cleaned, with very good scores. I called the credit card company back and asked them to run the other 2 reports. They did and they agreed my credit is good and approved the card.

Further investigation:
One of the delinquent account was Amazon visa. I called them up and they told me they never had an account with my name or SS#. So I disputed this account on Experian's site. The other delinquent account is for student loan from FED Loan service. This time, I didn't even call them, I just disputed it thinking its a mistaken identity since these accounts are not even showing up for Equifax and Trans Union reports.

After giving it some thoughts, I figured out what happened. I had a cousin living in my house supposedly going to school and need a place to stay. Long story short, I didn't want to do this, family pressure won, it was a nightmare, rest of the family soon realized I am right and we got rid of her and she is no longer living in the US. My cousin have her own SS#, but her name is only 1 letter off from my name. ie FWFGirl vs FVFGirl. So what happened was, Experian put her accounts under my name because it looked so similar with the same address. My thinking was confirmed when I got a collection letter addressed for her for that same Amazon account today!

My questions are:
1) I still plan on sending a certified letter to the collection company asking them to validate the debt to buy time while I figured out what to do next. When the collection company replies with the validation (It will be valid as I can definitely see her running up a credit card then leaving the mess behind), what is the next step? Should it be nothing since it is not even my name/SS/card/account?
2) How to clear these accounts from my Experian report? These accounts are NOT under my name and SS, and I did NOT co-sign anything for her.
3) Do I contact Amazon visa and FED Loan at all? It is really not their fault this shows up on the wrong Experian report and they have no records of me and my SS in their system?
4) Or do I just go directly and work exclusively with Experian to get this resolved?

Thank you for reading!
New User Question Deals
Best rates for balloon-type auto loan like PenFed Payment Saver?
Added on : Friday August 08th 2014 04:00:10 AM
g: 0 Posted By: AccelJunky
Views: 106 Replies: 1 Good morning,

My wife and I are trying to work the numbers on a his and hers car purchase (we are both in need of new ones) and I've used the PenFed payment saver balloon-type loan several times in the past with success...but I'm trying to do a little research on any alternatives that use the same model but with a better rate.

Right now they are doing 2.49% for up to 60mo on the payment saver. I've found a few obscure credit unions offering a similar balloon auto loan but with higher rates and with mileage limits.

I'm curious...has anyone seen anything recently like the PenFed deal but with a more competitive rate? I'm still busy digging through the corners of the internet but thought I would ask here to see if anyone has seen anything recently.

Personal Finance Deals
Methodology used to calculate FICO scores changing
Added on : Thursday August 07th 2014 08:00:04 PM
g: 0 Posted By: brettdoyle
Views: 67 Replies: 0 A change in how the most widely used credit score in the U.S. is tallied will likely make it easier for tens of millions of Americans to get loans.

Fair Isaac Corp. FICO -1.19% said Thursday that it will stop including in its FICO credit-score calculations any record of a consumer failing to pay a bill if the bill has been paid or settled with a collection agency. The San Jose, Calif., company also will give less weight to unpaid medical bills that are with a collection agency.

The moves follow months of discussions with lenders and the Consumer Financial Protection Bureau aimed at boosting lending without creating more credit risk. Since the recession, many lenders have approved only the best borrowers, usually those with few or no blemishes on their credit report.

As of July, about 64.3 million consumers in the U.S. had a medical collection on their credit report, according to data from credit bureau Experian. And of the 106.5 million consumers with a collection on their report, 9.4 million had no balanceand won't be penalized under the new credit-score system.

FICO Recalibrates Its Credit Scores

Interesting... looks like lenders are running out of people to loan money to and reaching into the bottom of the barrel.

Paying off a collection may actually make sense now that it won't have an impact on your score... this may be useful for people negotiating debts in a situation where the creditor refuses to remove the tradeline.
Credit Deals
Penfed - draw on heloc then apply for hel to pay down?
Added on : Thursday August 07th 2014 05:00:09 AM
g: 0 Posted By: Galun000
Views: 73 Replies: 0 I have an undrawn penfed 5/5 heloc with the 3.75% minimum rate floor. If I were to draw on it, can I then get a home equity loan from penfed to pay down the heloc principal balance? With 15 year at 3.99%, with no minimum 2% payment, I think it's a fair trade off. I called penfed and got different answers. One checked with the supervisor and said yes if the new HEL pass underwriting independently. One said not sure, apply online to find out. One said probably. Anyways, just wondering if anybody here had done something similar. Thanks.
Personal Finance Deals
How much $$$ to feel rich in Nj/NYC (2% problems)
Added on : Thursday August 07th 2014 02:00:11 AM
g: 0 Posted By: newnorley
Views: 12 Replies: 0 Following on from the, 'why do people blow money' thread.

How much do you need to earn to feel rich in Northern NJ / NYC? Me and the missus are going to earn $200k this year and I still feel like we're scraping by! I take lunch to work, rarely buy coffee etc. Don't have much debt, mortgage, car and student loan payments work out at $3600 per month, also max one 401k and one roth. I feel like I should be able to buy a latte from starbucks most days or spend $300 on a fancy dinner once a month. But we still feel like we're just making ends meet. I'm not use to an extravagant life but I always imagined once I hit this earning level I would have a lot more play money.
General Economics Deals
You'll Be Rich in the Military - in Ways You Don't Think
Added on : Wednesday August 06th 2014 11:00:09 PM
g: 0 Posted By: rachelmark7922
Views: 79 Replies: 0 I hear "You'll never be rich being in the military" all the time, from lower enlisted to command level officers. The military perpetuates the mentality that we don't make that much money. I'd like to argue that we do make a lot, and that the military is an incredible steppingstone to the middle class.

When I got shipped off to boot camp, I was making about $400 every two weeks. I always thought to myself how much more I had made in the civilian world. But I wasn't taking into account what didn't show up in my paycheck. Here are 10 big financial benefits of serving in the military:

Training. Depending on your service and military occupational specialty, you'll get up to two years of training before reaching your first duty station. Much of this training translates straight into college credits -- and it looks great on a rsum.
Retirement. The military is one of the last employers in America to offer retirement plans. After serving a mere 20 years, service members can choose to separate with 50 percent of their base pay every month for the rest of their lives. If they're eligible, they can stay up to 30 years to receive 75 percent of their base pay, and high-grade officers can retire with 40 years to receive 100 percent.
Health care. While serving on active duty, service members and their families (spouse and children) will have free health care through Tricare so they are in the peak physical and medical condition they need for their jobs.
Dental. Dental is free for service members, because good oral hygiene is necessary to maintain a deployable status.
Commissary. The commissary is pretty much just an enormous grocery store, with better-than-WalMart (WMT) prices (most of the time). They also have enormous "lot sales" every so often where they have blowout prices of stuff you actually want.
Basic Allowance for Housing. When you're a low enlisted rank, they'll stick you in the barracks (or dorms in the Air Force). The barracks, as terrible as they may seem at the time, save you so much money it's incredible. Typically, they're in the same parking lot as your workplace, so the commute is eliminated. Utilities are included, too. And you don't need to write a check for rent and worry that you won't have enough money, because the basic allowance for housing is granted to all military members. The allowance also gives you the ability to rent a house off-base or to use base housing.
Tuition assistance. Depending on your branch of service, you could be eligible for up to $4,500 per year toward college classes. By taking full advantage of this, you could have an associates's degree in one enlistment and a bachelor's in two. And don't forget that you could earn college credit for your training through the College-Level Examination Program or Defense Activity for Non-Traditional Education Support.
The GI Bill. Typically used after separation, the GI Bill allows you to go to college at no extra cost to you. During the first year of your service, you will pay $100 per month toward the GI Bill. After that, you owe nothing. Service members can choose among two versions (the Montgomery GI Bill and the Post 9/11 GI Bill), and there is a way to get a few extra free credit hours if you switch between them in a specific way. It's also transferable to your spouse or children, although you need to serve at least four extra years after the election has been made.
Thrift Savings Plan. If a pension plan wasn't enough, military members have access to the retirement savings plan, with a traditional and Roth option. It bases allocations on stock indexes and has extremely low operating costs -- read: very, very low expense ratios.
Veterans Affairs loans. VA loans resemble Federal Housing Administration loans -- with a few awesome advantages. These include no down payment and no mortgage insurance requirement. They also usually let you have access to the best current rates available. And you maintain this benefit for life. Married to another service member? Then you each get your own VA loan to use.
Other benefits include military discounts (thank you business owners!), networking (you'll meet hundreds, if not thousands of people during your tour), experience (management and occupational), VA benefits and free simple income tax filings.

I'm not advocating that you join the military for financial reasons, but I am trying to highlight some of the financial perks that you wouldn't see in your paycheck.
Discussion Deals
Lender initiated multiple hard pulls
Added on : Wednesday August 06th 2014 09:00:12 AM
g: 0 Posted By: dboston1
Views: 72 Replies: 0 My SO and I are trying to refinance her private student loan debt and filled out an application with SoFi. I've read great things about them and have seen them mentioned repeatedly here on FWF. She filled out the application and we put me on to co-sign with the hopes of getting a better rate.

A credit monitoring service that I subscribe to alerted me that SoFi has now done two hard credit pulls for me, on two separate days. I've called them repeatedly to try and get an answer as to why this happened, and the call reps are always surprised, put me on hold, and then tell me a manager will call me back the same day. Of course, no call backs. Beginning to feel like I'm getting the runaround from them.

My question here is if there's any way they can make this right. Assuming it was an accident, I'm guessing they cannot retract one of the pulls? In which case I'm stuck with that extra hard pull? Would there be any legitimate reason for a lender to do two hard pulls within a 72 hour period?
Personal Finance Deals
g: 0 Posted By: gtdguy
Views: 176 Replies: 14 Hey Guys,

First time poster here, I just found this by chance searching for business loan stuff, and realized what a cool community you have here. I thought I'd give it a shot and just lay my situation out here.

I've been doing business online for about 10 years now, always trying new businesses, doing new things, narrowly missing huge opportunities etc. I've single handedly been behind projects that have made millions, but I didn't have a big cut, and went years in between without making any money. I started a new business, and I'm positive this is my window. I've tweaked my business, and its currently able to double money in 60 days, sometimes it even does 150% roi. I get paid from famous vendors, people that banks would trust.

Here's the issue: You can't just throw all your money in at once, it has a bunch of tedious logistics associated with it, and it takes months to ramp up. I'm hiring people to help with this, however because the business takes money to make money, and my resources are limited, I'm hiring overseas to keep things cheap. I'm realizing now that there is a window on this opportunity, and I'm positive I could be making millions if I push hard and fast. I need to hire talented, smart people who can think for themselves, are motivated and can help take responsibility for things. To do this, I either need to recruit them with equity, or pay them (which If I paid them, I wouldnt have money to put in the business).

So my first thought, is that I would love to borrow money. I've got excellent credit, and I'm pretty sure my bank thinks I'm a high value customer, despite balances being a bit low now. What are my options? I'm worried my bank wont understand my business, its not exactly easy to understand, and in their eyes maybe they'll see it as risky. But I've got it figured out, its a system, it can grow, and it can be huge. And with these returns, interest rates on loans are silly. So does anyone have advice on how to go about getting loan? Is there anyway I have to present it to make sure I get a loan? Unfortunately I only have history with one bank, if they don't give it to me, I'm not sure how I convince the others. Maybe It's just me thinking small.

But I could really use some other brains on this, what should I do? I feel like I've figured out the hard part, and I want to focus on improviin gthat, but instead im stuck in a game of optimizing and being efficient with cashflow, when the real game should be trying to dump as much as possible in this, and improve the roi and terms at which im paid.

I know its alot, but thanks for reading if you've got this far.
New User Question Deals
First Invesment Property
Added on : Sunday August 03rd 2014 08:00:09 PM
g: 0 Posted By: BenFranklin
Views: 34 Replies: 0 I live in the cheaper part of the country. I want to buy my first investment rental property, but I don't want to put too much down.

If I purchase a property for own occupancy, I can get away with a 5% loan (I know PMI, blah blah...).

However, my understanding is that if I were to buy a property with intention of renting it out, the bank will require 20-30% down.

Hypothetically if I don't tell the bank at the time of purchase that I intend to turn it into a rental, and I do it later on. Is there usually a clause in the loan contract that allows the bank to VOID THE LOAN?

Thanks in advance!
Real Estate Deals
g: 6 Posted By: MoogLiberation
Views: 1260 Replies: 48 I'm in a unique situation and wanted to get your advice on what I should be doing financially. I have my own ideas but I'll keep that to myself right now because I want to hear your unbiased suggestions. I'm 30 years old and was diagnosed with an inoperable brain tumor in November. I haven't been given any kind of definitive prognosis, but for those that don't know, there isn't a cure for brain cancer and I've been told a pretty wide range in regards to prognosis that ranges anywhere from a few years up to 30 years (thankfully my biopsy results showed that it is very slow growing, so there is some hope). Anyways, here's a few other details about me: I live (rent) in NYC so the cost of living is pretty high. I'm on a commission based salary so it's hard to give an exact figure, but let's say I'm making about $120k/year. I got married last year and don't currently have any kids although they are in the near term plans. Also, I didn't have a life insurance policy before aside from the one I have through my work that is only equal to 1X my salary. There is an option to ramp that up as high as 8X my salary, but I couldn't do that until open enrollment in the fall and I don't even know if I would be able to do that now given my diagnosis. I'd love to hear of any other ideas you may have regarding life insurance though.

Some specifics about my financial situation:

$60k cash in savings
$0 credit card balance
$7,400 federal student loans at 2.1%. Yeah, that's not a typo. I'm currently just paying the minimum on the balance and just plan on riding it out.
$20k in Roth IRA invested in S&P500 ETF.
$60k in 401k. I just changed this recently to be about 70% invested in short duration taxable bonds, and 30% in an S&P500 ETF.

So what would you guys be doing if you were me? The old me pre-brain cancer would have had at least $50k of that $60k cash that's in my savings account invested in something like an S&P500 ETF but I'm hesitant to do anything that has that kind of risk associated with it now. Please let me know if any other details would help. I think I covered it all.

I'd be grateful for any and all ideas. Thanks guys.

Edit: A few more details:

I was already on short-disability for 3 months while I was receiving and recovering from radiation and chemo. Surprisingly, I was very responsible and elected to pay for the extra long-term disability insurance which pay 60% of my salary.

I have pretty good private health insurance with an out of pocket maximum of $1,650 that I literally hit on January 2nd because I was receiving radiation and chemo at the time. I maxed out my FSA at $2,500 for the year as well.

I have no idea what kind of benefits I would be entitled to through SSA/SSI. Does anyone know how I can figure that out?
Discussion Deals
g: 0 Posted By: MoogLiberation
Views: 127 Replies: 6 I'm in a unique situation and wanted to get your advice on what I should be doing financially. I have my own ideas but I'll keep that to myself right now because I want to hear your unbiased suggestions. I'm 30 years old and was diagnosed with an inoperable brain tumor in November. I haven't been given any kind of definitive prognosis, but for those that don't know, there isn't a cure for brain cancer and I've been told a pretty wide range in regards to prognosis that ranges anywhere from a few years up to 30 years (thankfully my biopsy results showed that it is very slow growing, so there is some hope). Anyways, here's a few other details about me: I live (rent) in NYC so the cost of living is pretty high. I'm on a commission based salary so it's hard to give an exact figure, but let's say I'm making about $120k/year. I got married last year and don't currently have any kids although they are in the near term plans. Also, I didn't have a life insurance policy before aside from the one I have through my work that is only equal to 1X my salary. There is an option to ramp that up as high as 8X my salary, but I couldn't do that until open enrollment in the fall and I don't even know if I would be able to do that now given my diagnosis. I'd love to hear of any other ideas you may have regarding life insurance though.

Some specifics about my financial situation:

$60k cash in savings
$0 credit card balance
$7,400 federal student loans at 2.1%. Yeah, that's not a typo. I'm currently just paying the minimum on the balance and just plan on riding it out.
$20k in Roth IRA invested in S&P500 ETF.
$60k in 401k. I just changed this recently to be about 70% invested in short duration taxable bonds, and 30% in an S&P500 ETF.

So what would you guys be doing if you were me? The old me pre-brain cancer would have had at least $50k of that $60k cash that's in my savings account invested in something like an S&P500 ETF but I'm hesitant to do anything that has that kind of risk associated with it now. Please let me know if any other details would help. I think I covered it all.

I'd be grateful for any and all ideas. Thanks guys.
Discussion Deals
Credit Inquires and credit score
Added on : Sunday August 03rd 2014 04:00:05 AM
g: 0 Posted By: weic6928
Views: 123 Replies: 2 Over the past 18 months I've refinanced my home loan, started a business, and also looked into a new mortgage loan (but didn't go through). As a result, I have alot of credit inquiries on my credit report.

Credit Karma now allows you to see the details of your credit inquiries, and I've noticed that the inquiries are not coming off until they are 2 years old. I had thought it would be one year? Can anyone offer any thoughts on this? This is what Credit Karma says about my inquiries:
"Applying for a new line of credit typically initiates a hard inquiry on your credit report. These inquiries typically remain on your report for two years."

We are going to start looking into buying a new home soon, and to limit the impact of multiple inquiries on top of what I already have, is it true that if I apply for loans within a certain period (2 weeks?), that the impact on my score will be essentially just one inquiry? How many can I apply for in a 2 week period for this to apply? Is this pretty rock solid true? Only double checking because I had thought it was understood hard inquiries "expire" after a year and now I'm finding that doesn't seem to be the case.
Credit Deals
g: 0 Posted By: alamo11
Views: 0 Replies: 0 I know it's Fox but..

This is how unethical servicers make money!

One of the country's largest overseers of troubled home loans, Nationstar Mortgage Holdings Inc., is quietly trying to sell a $100 million insurance agency that doesn't appear to exist.Harwood Service Co. has no website, no independent offices and only a single registered agent. The switchboard operators at Nationstar's headquarters in Lewisville, Texas, haven't heard of Harwood. Call-center employees of Assurant Inc., the insurance carrier whose policies Harwood sells, say the company is just a name used to refer Nationstar business.Only one thing justifies Harwood's nine-figure price tag: The ethereal company has long collected commissions on high-priced insurance that Nationstar compels otherwise-uninsured homeowners to buy. If homeowners can't pay for this "force-placed" coverage, Nationstar forecloses on their homes and sends the bill to mortgage bond investors.New rules by the Federal Housing Finance Agency, investigations by state regulators and class-action settlements now prohibit servicers from collecting commissions on such insurance policies, and the country's biggest brand-name banks have renounced the practice.But some large subprime-mortgage servicers appear to be trying to skirt those rules. They are selling or have sold the nearly nonexistent insurance agencies or have already made profitable business arrangements to try to comply with the new rules.The multimillion-dollar deals illustrate how regulators are still wrestling with messy banking practices more than six years after the housing market's collapse. They also mean that newly sold insurance subsidiaries have an incentive to compel struggling homeowners to buy costly policies, to justify the high sales prices commanded when the insurance agencies were sold.Harwood collected more than $40 million last year on more than $200 million worth of insurance billed to homeowners, according to two people familiar with Nationstar's confidential sales pitch for the business but who spoke on condition of anonymity because they were not authorized to discuss it.Force-placed insurance is a type of backup property insurance meant to protect mortgage investors' stake in uninsured properties. Standard mortgages require borrowers to maintain homeowners insurance and authorize the loan's servicer to buy coverage when borrowers don't. If the borrowers don't pay for the new insurance, servicers foreclose on their properties and stick the bill to mortgage investors.Nationstar's first attempt to sell its affiliated insurance agency fell through early this month after The Associated Press raised questions about the deal, prompting New York's Department of Financial Services to take a look. Nationstar is still seeking to sell the insurance agency, said one person who is familiar with its efforts and requested anonymity to discuss its business affairs without authorization to do so publicly.Nationstar declined to discuss details of Harwood's business.In court, however, Nationstar has opted not to fight to defend its arrangements. Earlier this month, Nationstar and Assurant Inc. reached a deal to settle a class-action lawsuit in the U.S. District Court for the Southern District of Florida that alleged Harwood existed solely to "funnel profits" to Nationstar at borrowers' expense.It's unclear how or whether the Federal Housing Finance Agency, the industry's principal U.S. regulatory agency in Washington, will respond to such sales. In a statement, it expressed concern about the deals. But it said it could not stop servicers from selling their insurance agencies, even as it said it would work with Fannie Mae and Freddie Mac if the companies were circumventing the new rules.The nation's third-largest servicing company, Walter Investment Management Corp., disclosed in its Securities and Exchange Commission filings that rules banning commissions will cost it roughly $20 million a year and said it was "actively looking at alternatives" to giving up the cash. A spokeswoman, Whitney Finch, declined to explain further but said the company would comply with all rules and regulations.Another company, Carrington Mortgage Services LLC of Santa Ana, California, didn't sell its insurance agency. It just agreed to let someone else collect the profits.In an Irish bond prospectus filed last year, Carrington's parent company disclosed that a buyer had paid it $21.25 million in late 2012. If Carrington doesn't send back at least that amount to the agency's buyer in commissions, it will have to give back some of the money it received.Carrington executives denied that its obligation to deliver $21.25 million of commissions would in any way affect homeowners or mortgage investors, and noted that it is not subject to the finance agency rules because it services loans owned by private investors. In its Irish prospectus, however, Carrington warned that some regulators believe the commissions "may constitute an improper 'kickback'," and added: "Should any regulator decide to take action, we may be forced to pay restitution."

Getting a loan from brother for 30k
Added on : Thursday July 31st 2014 07:00:12 AM
g: 0 Posted By: CaliforniaDriver
Views: 146 Replies: 4 Hi all,

Back when I was in my undergrad, My brother loaned me 12k to help me buy a car. I was able to pay off the loan within 3 years. Now fast forward many years later and I need a $30k loan to go to harvard university for my PHD. Obviously he doesnt have a problem loaning me the money but what is the most legal way to go about doing this? Even if its a loan, will the gift tax come into play? If he gives acheck to myself for 13k and my wife 13k for a total of $26k will this be one way around this gift tax issue?

Personal Finance Deals
College Education Not Allowed for Tax-Credit Housing? WTF?
Added on : Wednesday July 30th 2014 10:00:08 PM
g: 0 Posted By: blindninja1
Views: 36 Replies: 0 Finalizing the paperwork with my landlord for my annual income recertification today, I learned of my consequence for a horrible, unthinkable decision I recently made. My crime? Please don't judge me too harshly, but I enrolled in a teaching certification program. Luckily for me, our government, has a rule in place to make sure my terrible actions will not go unpunished. The punishment? A swift, and all but imminent eviction, of course. I'll try to summarize some of the details:

My current job is no longer meeting the cost of living. Ineed certification to move up to a position that actually pays a living wage
Have a Bachelor's Degree already, can get teaching certification in under 2 years.
I'ma residentin a "tax-credit housing" apartment building
Building is new, relatively upscale, and relatively nice- I love it and don't want to move
Apartment is rent controlled @$585/month,about 1/2 of anything comparable in the area- I can't afford to move
I'm fiscally responsible, have a perfect credit rating, and the thought ofgoing into any debt for anythingother than the student loans I'm using to move up in life is terrifying
The law dictates that I need to move out within 5 months of the day I enrolled in my post grad education.

From my initial research, there seems to be only three ways around the pending life disaster
1) Add my gf to household. Problems: I'd need to get her on board with signing the paperwork, go through the background checks and income verification, make herself legally reponsible for a 2nd lease, and making my apartment her primary residence despite the fact she can't actually, because we both have cats, are not crazy enough to have any more in the same place, and could never bring ourselves to get rid of them like all the poor animals overwhelming shelters
2) Get roommate. Problems: A horrible idea with a million reasons why it would probably end very badly... It's only a 1-br, I'm a neatfreak, they could be a deadbeat... This is a last resort
3) Enroll in a federal or state funding job training program. Problem: I already work and go to school full time, need my current job for my teaching certification program field placement, and might not qualify anyway

Personal Finance Deals
u truly CAN 'marry money".
Added on : Wednesday July 30th 2014 01:00:09 PM
g: -2 Posted By: nicj4070
Views: 80 Replies: 1 Thousands of 3rd world MD's, engineers, Physicists, etc, will do pretty much anything to become US citizens. Each one of them can get 20k per year of loans, grants and scholarships until they get a bachelor's degree from a US college, and then they get 40 k per year for 2 years, to get a master's degree. Since many of them can earn 200k per year, they could not care less that they end up owing 100k by the time they are Citizens (which takes 5 years, minimum) Of course, you have to know how to protect your stuff by having a Nevada corporation own it, and you have to be careful who you choose, but it can be done, and very little money and no special ability, training or education is required. If you care careful where they go to school, it costs 5k per year up to the bachelor's degree, 10k per year from bachelor's to a master's degree. They can only go half time, cause you'll have them working full time, at some lesser (but still well paid) job. they can't divorce you right at the 5 year mark, either, cause that will get Immigration looking and having them deported anyway, as the marriage being a "sham". So, basically, you can have 25-30k per year, cash, untaxed, per year, for 5-6 years. If you can't figure out a way to retire on that much of a head start, I feel for you.
Discussion Deals
g: 0 Posted By: RhizzleBop
Views: 86 Replies: 3 I've done the reading and research on borrowing from a 401k And how its generally a bad idea.
I get that the opportunity cost of the money not being there is potentially a big hit. I'm torn as to whether double taxation is a myth or not as I'm not sure when you're paying back the loan if it comes out pretax or not.

In my families situation we have paid for our wedding and paid off my wife's student loans and a car and we are now saving rapidly for a home purchase. We need more space and our current house will become a rental. This will happen in about a year.

So as we currently stand I put money in my 401k each month and get the company match. The rest of our income that doesn't go to expenses is being saved (obviously post tax) with the intent to use much of it for a large downpayment on our next home.

The question I had was, when considering the fact that not maxing the 401k pretax is an opportunity I can never get back after 2014 cause I can only out so much a year, would I be better off maxing the 401k and then when we are ready to move on the house, borrow from that so that going forward I can continue to max that in 2015 as well as pay back the loan.

For some perspective my plan is to out down around 45-50k on a home when we are ready to do that.

I would consider borrowing as much as half of that from 401k if I saved less in my bank account and maxed the 401k this year.

If I did that borrow its likely to happen between jan and July of 2015 and if it w ere roughly 20-25k then I would be paying that 401k loan off in 12 to 14 months.

Bascally it comes down to opportunity to max 401k in. 2014 that I can never get back again vs opportunity cost of having money pulled from the 401k for about a year that I will aggressively pay right back in.

Discussion Deals
Federal Direct Graduate PLUS loan vs private loans
Added on : Tuesday July 29th 2014 07:00:08 PM
g: 0 Posted By: garyshultz
Views: 81 Replies: 1 Hey guys,

I am trying to choose between Federal Direct Graduate Plus loans vs Private loans like Discover Student loans.

What are the pros and cons?

I am going to for sure get Federal Direct Unsubsidized Stafford loans which is reasonable but the Federal Direct Graduate Plus Loans are straight up expensive. These origination fees should not exists!
See below:
The Federal Direct Unsubsidized Stafford loan interest rate for loans disbursed between July 1, 2014 and June 30, 2015 is 4.66% fixed for undergraduate students and 6.21% fixed for graduate students. Interest does accrue on the loan while you are enrolled. The Dept of Ed will deduct a 1.072% origination fee from the loan disbursements. You must be enrolled at least half-time status to receive your disbursements. Repayment begins six months after you are no longer enrolled at least half-time status.
$20,500.00 DGP The Federal Direct Graduate PLUS loan is a credit-based loan. By accepting the loan I consent to the Dept of Ed and its agents obtaining a report of my credit record and using that information in determining whether to make a Direct PLUS loan to me. The interest rate for loans disbursed between July 1, 2014 and June 30, 2015 is 7.21% fixed. The Dept of Ed will deduct a 4.288% origination fee from the loan disbursements. You must be enrolled at least half-time status to receive your disbursements. Repayment begins six months after you drop below half-time status.
Now im also considering a private loan like Discover Student loans that dont have origination fees. However if in the future, if the government decides to bail us out or if i work for the government with a student loan assistance program, would my discover student loan fall under these rules?


Discussion Deals
Help Dividing Home Equity between 3 People
Added on : Tuesday July 29th 2014 02:00:05 PM
g: 0 Posted By: TacoSmith
Views: 123 Replies: 10 Hello FWFers. I need help finding a formula to divide up the profit from selling a house between myself, my wife, and her sister. I would love your assistance in finding a fair way to divide up whatever profit we make from selling the house.

My wife and sister bought a house together in June 2009 for $109,000 via an FHA loan. I'm still trying to find the down payment amount. They didn't keep good records.
My wife (then fiance) and I refinanced the house in our names in July 2013 (one month prior to our marriage) for $104,600 (30 year fixed) with a new lender. Her sister moved out the following month (job loss months earlier, couldn't afford her share of the rent). The cursory appraisal was $120,000.
My wife and I have been the only ones paying rent from July 2013 until now
We've spent $1000 in repairs during that time to get the house presentable to sell.
We've listed the house at $130,000 based upon comparables from our realtor.

I have no clue how much we'll have after selling since it hasn't sold yet, but I'd like to get some kind of formula in place to divy up the profit fairly. My father-in-law is trying to suggest a 50/50 split, but that fails to take into account the 12 months that I've been paying on the mortgage and the repairs we've done to get the house in sell-able condition.. Can anyone help me out in this regard?

I will do my best to provide any additional information that I can locate. I've tried doing Google searches, but they only seem to deal with divorces and selling estates that were inherited. Thank you for your time.
Question Deals
Learning How to Save, Retire and Manage Personal Finance
Added on : Tuesday July 29th 2014 10:00:11 AM
g: 0 Posted By: droctagon
Views: 125 Replies: 4 Hi all! I love this forum and try to visit it often as there seems to be a good pool of knowledgeable users. I've posted a few topics here and have received some great advice, a lot of which I did not take. I was recently looking at my 401k balances and really don't understand what is best for me or what it even means. This is what I know:
26.29% POST-86 SIP $23,928.47 $23,928.47 100% 20.29% EMPLOYER NONMATCHING CON $18,467.86 $18,467.86 100% 20.25% EMPLOYER MATCH $18,432.93 $18,432.93 100% 19.01% ROTH 401K $17,305.90 $17,305.90 100% 14.17% 401K $12,895.22 $12,895.22 100%
With a total 401k balance of $91,030.38. A little background on my other finances:

29 y/o engaged with $80k salary in Chicago (salary has been steadily increasing 5-10% since I started out of college with the same company)
$8k in savings earning 1% APR
$0 credit card debt
$6.4k car loan at 2.99% fixed
$36k student loans under 3% APR variable
$100/month into a Roth IRA (started today)

I spoke with a Fidelity representative who runs the 401k account and she suggested immediately opening up a Roth IRA, even if it means $100/month. She mentioned opening up a Roth IRA starts some sort of 5 year clock that is a qualifier for withdrawing money? Can anyone elaborate?

I have also read a good benchmark is to have 1X your salary by age 30 which I have been able to reach that goal. Given that, would anyone recommend maybe putting less into my 401k and putting more into my Roth IRA?

Finally, I will have a few major expenses coming in the next 2-3 years. I would like to be able to put a down payment on a modest priced house (~200-250K) and more immediately like in the next year, come up with $15k for a wedding. Sorry guys, I don't think my fiancee is going to accept a true FW wedding and if you guys aren't aware, 15k is on the low end for a wedding! Ridiculous!

I don't think its worthwhile to attack my car loan or my student loans given the APR. Any help, guidance, advice, articles would be of great help. Thank you all very much for your time.

Personal Finance Deals
g: 0 Posted By: jaytrader
Views: 226 Replies: 3 http://money.cnn.com/2014/07/29/pf/debt-collections/index.html?i...
cnn money said: An estimated 1 in 3 adults with a credit history -- or 77 million people -- are so far behind on some of their debt payments that their account has been put "in collections."

That's a key finding from a new Urban Institute study.

It examined non-mortgage debt, including credit card bills, car loans, medical bills, child support payments and even parking tickets.
The debt in collections ranged from as little as $25 to a whopping $125,000. But the average amount owed was $5,200.
Among the states,Nevadahad the highest percentage of residents with debt in collections -- 47% - as well as the highest average amount owed - $7,198. That was helped in part by the Las Vegas metro area, where 49% of residents had debt in collections.
The study, conducted with Encore Capital Group, is based on a random sample of 7 million people's TransUnion credit files in 2013.

Damn, we got issues, son! Basically, according to the article*, every other person that lives in Vegas has a collections account or accounts. That is mind-boggling. I bet that doesn't include the money they owe to loan sharks, either.

*sample of 7 million TU files.
Discussion Deals
g: 0 Posted By: letsspendlotsofmoney
Views: 90 Replies: 0 My sister wants to buy this car and I have a feeling that this was part of a "buy back" or lemon..

It's currently listed on eBay http://www.ebay.com/itm/Ford-Taurus-Limited-Navigation-Heated-Cool-Leather-Back-Camera-used-4-dr-sedan-warranty-v6-bluetooth-/231262430538?forcerrptr=true&hash=item35d850a54a&item=231262430538&pt=US_Cars_Trucks

They are heading down friday to pick the car up and I am thinking the red flags are a reason to run from this car. We are a loyal Ford family but when a vehicle less than 2000 miles and needed the engine replaced and battery recently I would think that would be reason to run.

Below is the carfax report:
05/25/2013 NICB Vehicle manufactured
and shipped to original dealer 05/31/2013 New York
Motor Vehicle Dept.
East Elmhurst, NY Registration issued or renewed
Titled or registered as rental
Passed safety inspection 06/21/2013 New York
Motor Vehicle Dept.
Virginia Beach, VA Title issued or updated
First owner reported
Loan or lien reported 08/12/2013 1,846 Auto Auction
Northeast Region Sold at auction

Millions of used vehicles are bought and sold at auction every year.

08/13/2013 Ohio
Motor Vehicle Dept. Vehicle purchase reported 10/24/2013 1,857 Dealer Inventory Vehicle offered for sale 11/04/2013 Elyria Ford
Elyria, OH
elyriaford.com Engine removed to complete repair
Engine checked
Engine replaced 01/22/2014 Ohio
Motor Vehicle Dept.
Elyria, OH
Title #4702813463 Title issued or updated
Dealer took title of this vehicle
while it was in inventory 03/13/2014 1,895 Elyria Ford
Elyria, OH
elyriaford.com Maintenance inspection completed
Battery replaced
Battery/charging system checked
Battery/charging system/starter checked
Starter replaced
Tire condition and pressure checked 05/29/2014 Ford Motor Company Manufacturer Safety recall issued
Recall #14S08

Locate an authorized Ford or Lincoln Mercury dealer or call 866-436-7332 to obtain more information about this recall

Question Deals
g: 0 Posted By: lcarjc
Views: 63 Replies: 1 My relative got my father to sign my tax returms. Then they tried to get my father to sign some loan documentd to get a loan on a apartment building we own together. I have convinced him not to. Can they get a loan on the building without my cooperation. Is there anything I can do to stop them from doing this. My father is old and may sign paperwork without knowing what they are. If I co own the building can they get my percentage of the loan?
Tax Deals
FHA 203(k) Questions
Added on : Sunday July 27th 2014 04:00:07 PM
g: 1 Posted By: scottybweyy
Views: 50 Replies: 1 I'm considering purchasing a multi-family quadplex and had some questions on FHA 203(k) loan.

1.) When searching the lender liston the HUD site, I return 0 lenders when searching for those who have done a 203(K) loan in the post 12 months in SC. Does that mean 203(k) loans don't exist in my state?
2.) What national lenders will allow appliance purchases with this program?
3.) Is there a lender where I can qualify for both a conventional FHA and a 203(k) loan in case I decide to only go conventional?
4.) I have read that you need working capital since the draws to pay contractor milestones are typically delayed ~60 days. Is it possible to do a 203(k) without paying contractor personally?

Question Deals
Pay off student loans or fund 401K?
Added on : Sunday July 27th 2014 08:00:08 AM
g: 2 Posted By: dyslexiateechur
Views: 135 Replies: 8 Hi all. Hubby and I have just paid off a mortgage and we can't agree on what to do next with our spare funds.

I already fund my 401K to the full match that my company offers (3% full and then a smaller match up to 5%), but I started paying into it late so it's less than what it should be for someone my age (32) IMO.

On the other hand, I have student loan debt that I pay slightly above the monthly payment on--and I have a long way to go to pay it off. No private loans, just federal. Interest rate is around 4% I believe (I'd have to look it up to give the exact).

Hubby wants to aggressively pay down the student loans, but I'm thinking that (for tax purposes at least), it would be better to start putting more money into the 401K, even if it's not yielding a lot at the moment.

Which one (if either) would you pick?
Investing Deals
Can I get rewards (cashback, cc pts) from paying off a HELOC?
Added on : Saturday July 26th 2014 03:00:05 AM
g: 0 Posted By: evercl92
Views: 624 Replies: 4 I bought house #2 with a HELOC on my first house($50k ish). I also have a vehicle loan through the same bank ($16k ish). I'm selling house #2 shortly and had planned to pay onto both of these pretty heavy (thus the hopeful potential of a lot of bonus rewards). I checked with DiscoverCard and Chase (my account is showing offers for 0% transfers), to see if I a balance transfer or cash advance counted toward getting reward points. Both said that they didn't give points for those.

That said, is it typical for a bank to accept a credit card payment ? Any other options to get some bonus out of this?
Credit Deals
g: -1 Posted By: manito2000
Views: 162 Replies: 5 Hello everyone,

Here's my quick story. I am 34 y/o, married w/ 2 children. I recently cashed out my Calpers retirement account and incurred a 20% tax penalty.

My purpose for doing this is to put the money towards a downpayment on a conventional home loan (5% down). I am ready to put an offer on a home. My question is whether my tax benefits for purchasing a house in the next month or so.
Personal Finance Deals
5/5 vs 15/15 vs 30
Added on : Friday July 25th 2014 10:00:12 AM
g: 0 Posted By: pucelle
Views: 258 Replies: 4 So I'm a first time home buyer and decided to buy new construction townhouse in a planned new planned community where I had been looking at apartments. As such, I got a pre-approval from a broker I had met and was waiting until I got a closing date/finishing date from the builder before I went any further. I'm currently going through underwriting with said broker (which I found out is a Wells Fargo affiliate) and just got word the townhouse will be completed next month with a close date of the beginning of September. So I figure now is the time to start looking around at rates and I was originally looking at the 30 year fixed even though I know that I hope to be the house for 3 years and ideally 5-7 before moving to a different state or out of the country. Given that, it doesn't really make sense to me to get a 30 year fixed and when I was looking around I saw the 15/15 from PenFed and the discussion on this site regarding it. 5/5 ARMs seem to also be popular with the increase caps at 2%.

Since for me this is totally not a planned thing and more of a impulse due to timing (last group of townhomes in developement, end unit in the perfect location for me) I haven't been able to do the usual research I normally do for financial things and have decided to outsource some of the legwork. When I looked at the ARMs before, I had only known about the 3/5/7& 1 arms which never really appealed to me but the 5/5 seem like a better deal. The new 15/15 from PenFed also looks interesting but I'm guessing I will need to run numbers to see what makes sense. Which brings me to the next question; Obviously, when comparing mortgages and rates you need to plug in the numbers and look the whole picture but I'm a little confused at what whole picture I should be looking at. What's the breakeven point that people keep talking about? The only definition I am aware of for the breakeven point comes from the investment world and I wouldn't think it would make sense here; or does that only apply to refinancing? What type of things should I be considering when looking at the numbers?

Purchase Price: $282k
Down Payment: 10%
Monthly After Tax Income: $6k
Time in home: 3-7 years
Monthly Expenses: $2,065 (non-discretionary;e.g. car, utilities, student loans, etc)

I know that I could have gotten an existing townhouse in the neighborhood cheaper for the most part but the market is tight where I am so most people are paying above listing price and none of the places I looked at were worth the listing price. My credit is only average so I know that I don't qualify for the best rates. Chase quoted me 4.75% on a 30 year fixed with a mean CS of 670.
Personal Finance Deals
How to maximize rewards from this situation? (or get any at all)
Added on : Friday July 25th 2014 12:00:04 AM
g: 0 Posted By: evercl92
Views: 60 Replies: 0 I bought house #2 with a HELOC on my first house($50k ish). I also have a vehicle loan through the same bank ($16k ish). I'm selling house #2 shortly and had planned to pay onto both of these pretty heavy (thus the hopeful potential of a lot of bonus rewards). I checked with DiscoverCard and Chase (my account is showing offers for 0% transfers), to see if I a balance transfer or cash advance counted toward getting reward points. Both said that they didn't give points for those.

That said, is it typical for a bank to accept a credit card payment ? Any other options to get some bonus out of this?
Credit Deals
Business Loan or Crowd Fund?
Added on : Wednesday July 23rd 2014 07:00:05 PM
g: 0 Posted By: surfn2live
Views: 36 Replies: 0 FW Friends,
Looking for some advice on starting a business. Any direction, whether it is a point to another forum or personal experience, is greatly appreciated.

As with most businesses, initial capital is required. I have 30K on hand for my business for which I need a minimum of 47k- and ideally 55k to accomodate for appropriate promotion.

Bottom line, is the cost of interest on a loan worth the reduced time and effort of a crowdfunding campaign (kickstarter, indiegogo, etc...)

A loan for 25k through the SBA with veteran status will cost me $3,200 (3 year term/8% interest). I am over estimating interest rates to be worst case. With my credit, I would realistically expect prime plus 2.25 which today comes out to 5.5%.

Regarding the crowdfunding campaign, building a pool of supporters is a plus, as they will be a captive audience (400 supporters). With a loan, the same effort required for successful crowdfunding will be applied to a product vice the anticipation of a product. For example, "here try my product" vs. "donate $1 to try my product when it is complete."

I am trying to be short and to the point, I realize there are additional intricacies. Just looking for some big picture feedback.



Credit Deals
Mortgage Broker / Lender Fees
Added on : Tuesday July 22nd 2014 10:00:17 AM
g: 0 Posted By: krystle920too
Views: 148 Replies: 0 We are in the process of shopping around for a mortgage broker / lender to use for a home purchase in the next couple of months. We have not found a home yet, but we just wanted to have someone lined up in case we find a house and need to put in an offer quickly. We are in the LA metropolitan area (Burbank/Studio City specifically). I just wanted to ask what we should be looking for in order to get the best possible pricing on our mortgage. I know people have mentioned online lenders in the forums, but we would prefer someone we can meet in person as it would be a first home purchase.

This is what we found so far. One mortgage broker said their fee on the no-point option is paid by the lender and typically 1.75% of the loan amount. Appraisal is $525. Credit check is $30. Underwriting/Admin is $695-895. What should we be asking for?Another mortgage lender who apparently is also a broker said they just charged a flat fee of $1295.

Thoughts? It would be relatively straightforward 30-year fixed with a 50% down payment.
Personal Finance Deals
g: 0 Posted By: crazytexan
Views: 2 Replies: 0 Back story: I bought a 2014 Camaro for 18k in late April and got it financed. I am paying 1.29% APY (thank you FWF). Now my fiancee needs a new car but she has no credit. So basically I need to buy it for her and she can make the payments. After her trade in and all is said and done we are looking at another auto loan of about 9k-12k.

My details: FICO is 695, Experian 745, not sure about the other two but last I checked Equifax 780 and TU 740
Income is 38k a year
I'm 22 years old with no kids
No mortgage, I rent.
Current budget allows for $855 a month in disposable income. That is after factoring in all expenses and savings.
Current car payment is $349 a month
Credit utilization on revolving accounts is 5%

I'm not so worried about qualifying for the loan. What I am worried about is that I have made a decent amount of money from AoRs because my company reimburses me for flight expenses. Basically I turn every point I get into cash. I am averaging almost $1000/mo and have done a total of two AORs, one February 5th and the other May 7th, and would like to do one in August. Will adding this other installment loan screw up my potential for getting new cards? If not, should I apply for the auto loan before or after the AoR. Another route I was thinking of taking is to just do the AoR and apply for some 0% interest cards, and just charge the entire amount of the new car to said cards. Thoughts?

Let me know if I left out any vital info and I will post it asap.
Compare mortgage offers
Added on : Tuesday July 15th 2014 04:00:13 PM
g: 0 Posted By: steveb10
Views: 47 Replies: 0 I am in the process of buying a home. I have pre-qualified with aimloans and in the process of being pre-approved. I also looked into a local broker and received a fee worksheet. It looks as if aimloans is cheaper by about $1k, but I just want to make sure I am not missing anything. If you see something, please let me know.

Location: Alabama
Purchase price of home: $160k
Loan Amount: $112k
Interest rate: 4.25%
Conventional 30 yr

Lender Fee: $1,995
Lender Rebate: ($2,291)
Appraisal: $395
Flood Cert: $5.50
Credit Report: $16.75
Tax Service: $61
Owner's Title Ins: $500
Lender's Title Ins: $725
Recording Fees: $76
Tax Stamps: $216

Total: $1699.25

Local Broker:
Fees: $1,010
Appraisal: $450
Flood Cert: $14
Closing Protection Letter: $25
Title Examination: $125
Closing Fee: $300
Owner's Title Ins: $250
Lender's Title Ins: $25
Recording Fees: $85
Tax Stamps: $281

Total: $2565

Does anyone know why the Lender's Title Insurance is so much lower with the local broker? Is this something he would jack up at closing without me knowing? I am still learning about mortgages, so any comments or help would be much appreciated. Thank you!
Real Estate Deals
Current Financial Situation: Need Advice
Added on : Monday July 14th 2014 11:00:05 PM
g: 0 Posted By: nickygrahn
Views: 38 Replies: 0 Hello fellow forum members. This is my second topic since I've been registered here and the previous input was very helpful for me, so much so that I'm seeking advice again. This may get lengthy but I want to describe to the best of my ability what my current situation is financially. What I'm looking for is some inputs, though I know they'll be varied, on what I should do for future security. So here it is and again, I greatly appreciated the previous input. Your guys' knowledge with money is fantastic and I'm sure you have changed lives.

My Debts:
Home mortgage FHA @ 3.5% which is on the second year and already have paid off 10K in principle out of the 145K loan. This was a 30 year loan and the minimum payments is $1050 a month. This payment includes home insurance, taxes and mortgage insurance
Personal loan, which is used as my business loan, has $11,800 left @ 9%. Used to be about 19k but I sold some useless things and paid it down. Minimum payment is $450 a month.
Auto insurance is $1050 total every 6 months for wife and I.
Other misc. monthly bills which include cell phone, internet, home utilities and food average out to be around $500.

My business nets about $1,500 a month currently but I only need to pay our mortgage and my business loan. However, after doing that I have absolutely nothing left. Obviously, making $1,500 a month is not a lot and that's some of the reason I'm posting (more on this later**). The way I'm looking at things is I'm subtracting my current net of $1500 from the mortgage and personal loan, leaving literally $50 which I'm actually okay with since my wife is making $40k a year and we don't have other debts. The thing is, my money is mine and hers is hers. That's how we've agreed to do things and it actually works very well. I used to make more money when I had a job as well as my business but I left due to my inability to work under a boss.

Being self employed is something I like very much and I refuse to get a job. I've left a half dozen jobs in the past year, not even kidding, one of them being a top 100 company to work for according to Fortune Magazine. So with that said, I have the ability of expanding my current business due to someone retiring. I would need to take out an additional $20,000 for the expanding of my businesses to make another $800 net a month. I talked to a couple of bankers and they said a 5 year loan @ 8% interest would be around $650 a month of I included the current loan I have of $11,800. This would leave me with an extra $600 a month.

Is my vision wrong looking at things this way? Taking out money from a bank without having a savings or any other investments other than some business equipment frightens me. I could grind out what I'm doing currently, but this opportunity doesn't come very often. I know I could force myself to pay a loan faster to avoid paying excess interest since I've done that in the past. Judging from what you see on my post, do you have any feedback? Getting tired so I'll end the post here. Thanks for reading and chiming in!

Insurance Deals
Considering a mortgage...is now the right time to buy a home?
Added on : Sunday July 13th 2014 06:00:07 AM
g: 0 Posted By: t1m0thy
Views: 1504 Replies: 50 My wife and I are considering purchasing our first home. Our financial situation is below.

We would be using Navy Federal's 100% financing program (i.e. zero down) which would give us a resulting 5.25% interest rate with a 1% origination fee and 1.75% funding fee for a 30-year jumbo loan. We are also required to pay into an escrow account as part of the mortgage to cover taxes and other property fees. We live in the San Francisco Bay Area and are looking at houses in the $550k to $650k range. Because we do not have nearly enough for a down payment we are using Navy Federal's zero-down program and accepting a higher interest rate as a result. Estimated all-in monthly payment for a $650k mortgage is $4,200.

We currently live in a relatively inexpensive one bedroom, one bathroom apartment but given that 1) we have a baby on the way, 2) Fed actions seem to indicate a rise in mortgage rates soon and 3) the San Francisco Bay Area housing market seems to be going nowhere but up we are strongly considering becoming homeowners now.

I would love to hear your feedback!

Current Situation

Yearly gross income of $150,000 ($85,000 + $65,000)

The $85,000 salary will jump to $90,000 in March 2015
The $65,000 salary will stay the same


Monthly rent = $1,100; we are locked into a lease through July 2015 though are landlord has made it abundantly clear (in writing) that we can break our lease without consequenceo
Credit card debt = $12,500

All at 0% through March 2015
$277 minimum monthly payment

Student loan debt = $34,700

$2,250 at 5%, the remainder at 2.5%
$330 minimum monthly payment
We are making the minimum payment on $18,700 of the student loans since the remainder will be forgiven after 10 years of government service

No car payment


I work for the local government so our health insurance is really cheap
11% of the $85,000 salary goes to a pension

Personal Finance Deals
Going after a mortgage broker
Added on : Saturday July 12th 2014 03:00:11 PM
g: 0 Posted By: alamo11
Views: 49 Replies: 0 I'm coming to the FWF community for help with a situation involving a close friend. This person is very deserving and has done a lot of good for others in the community myself included. Recently he purchased a short sale. His DTI wasn't good enough for a 15 year so the broker his mortgage guy put him in a 30 year at a high rate (4.875%) but with no closing costs so he could refinance after he bought the place.

Anyhow he closed and came to me asking for help.Naturally I hopped on Bankrate and found a broker who just happened to be not too far from where I used to live. After a few emails I talked him into doing 2.75% with a .75% rebate on a 15 year with a 1% broker fee. Total closing costs about $3,400. Pretty incredible so he paid for the appraisal and had that done. Three weeks later broker saids the lender denied the loan because of seasoning. Not to worry he found someone with the same rate just a much smaller rebate (about $100). Still an awesome deal so we said fine.

Another three weeks or so of stalling later broker sends an updated GFE with points, higher broker compensation, and a bunch of fees tacked on. I tell him "No Way" and he saids he will get it taken care of. Another two weeks of stalling we decide we've had enough and drive down to his office. Office looks like it was setup overnight; guy looks shocked we showed up and sends us to his secretary. She announces "Maybe we will close next week." "Your cash at close is about $9,000". We flip our shit and leave.

Now: Clearly what happen is a bait-and-switch. During this time I have a number of GFEs and emails saying "ignore the GFE. It's wrong" and now I found out he doesn't have an NMLS license. In fact no one we saw or dealt with has a licence. Just some guy who doesn't even sit in his office. How do I go about reporting this goon and his unlicensed tactics? Friend suffered real damages in increased interest charges and almost had his credit trashed when they said not to worry about paying the mortgage. This is in FL.

Since then I'm working with a direct lender and got a similar deal as he was supposed to get just about $800 more in costs. How do I go about getting this guy arrested or in serious trouble? I wanted to put the fear of god into this guy but my friend restrained me from beating the living shit out of him.
Discussion Deals
Considering becoming a homeowner, is now the right time?
Added on : Friday July 11th 2014 08:00:08 PM
g: 0 Posted By: t1m0thy
Views: 22 Replies: 1 My wife and I are considering purchasing our first home. Our financial situation is below.

We would be using Navy Federal's 100% financing program (i.e. zero down) which would give us a resulting 5.25% interest rate with a 1% origination fee and 1.75% funding fee for a 30-year jumbo loan. We are also required to pay into an escrow account as part of the mortgage to cover taxes and other property fees. We live in the San Francisco Bay Area and are looking at houses in the $550k to $650k range. Because we do not have nearly enough for a down payment we are using Navy Federal's zero-down program and accepting a higher interest rate as a result. Estimated all-in monthly payment for a $650k mortgage is $4,200.

We currently live in a relatively inexpensive one bedroom, one bathroom apartment but given that 1) we have a baby on the way, 2) Fed actions seem to indicate a rise in mortgage rates soon and 3) the San Francisco Bay Area housing market seems to be going nowhere but up we are strongly considering becoming homeowners now.

I would love to hear your feedback!

Current Situation

Yearly gross income of $150,000 ($85,000 + $65,000)

The $85,000 salary will jump to $90,000 in March 2015
The $65,000 salary will stay the same


Monthly rent = $1,100; we are locked into a lease through July 2015 though are landlord has made it abundantly clear (in writing) that we can break our lease without consequenceo
Credit card debt = $12,500

All at 0% through March 2015
$277 minimum monthly payment

Student loan debt = $34,700

$2,250 at 5%, the remainder at 2.5%
$330 minimum monthly payment
We are making the minimum payment on $18,700 of the student loans since the remainder will be forgiven after 10 years of government service

No car payment


I work for the local government so our health insurance is really cheap
11% of the $85,000 salary goes to a pension

Personal Finance Deals
Already did Structuring by mistake: options left now?
Added on : Friday July 11th 2014 04:00:06 PM
g: 0 Posted By: unlucky16
Views: 218 Replies: 22 Hello guys, so my friend James recently informed me that he deposited 51k cash in his accounts over a period of 90 days. He was not aware about the 10k (CTR) or any cash (SAR) laws at all as he simply thought that putting in the cash loan he received from his friends to pay off for college tuition for his wife in a bank would be more secure than worrying about storing that money at home or any safe. Now considering its illegal, punishable and what not, if he simply calls IRS and informs them about this mistake, will that be an advisable route? We do envision a potential $10k penalty here. Secondly, if his friends are filing their respective 13k gift tax forms next year saying that they gave cash to James, would that be ok? Please advice.
Personal Finance Deals
g: 1 Posted By: LearningFast
Views: 121 Replies: 4 Hi all, I am a new member who is still very much learning how to manage money and credit, but have learned a ton reading these forums in the past couple of years when I had literally no credit file.
Below I tried to condense the very helpful things Ive learned here into a little HOW TO which I think contains all the things I wish I knew a while ago and learned here, albeit fragmented. Of course, all these will differ between people so feel free to add.
The two general rules of the money life that Ive learned.
1. Small discounts really can add up, if done right.
2. If your credit file had mass, it would be worth its weight in gold. Good credit allows you to get low interest car and mortgage loans, which (because of how compounding interest works) can save you even tens of thousands of dollars.
Ok, so how do you get ahead? Lets assume you have no credit at all and make a very low income (say $20,000/year). Right now:
- Get a credit card. Definitely #1 on your list. You should get a credit card with rewards if at all possible. Student cards (if you are one) will usually have top notch rewards and can be approved for people with no limit (Discover It for students, Sallie Mae Mastercard, Chase Dividend for students, BoA Cash Rewards for Students are some good ones). If you have a bank youve had a relationship with for a while, tap them for a card I got my first CC like that, and it has great rewards. Pick a no annual fee card, preferentially from a prime lender, as this account should be with you for life. If you cant get a credit card from anywhere, get a secured card first, and then after 6 months get a real credit card.
-Begin tracking your credit. Sign up for creditkarma.com, creditsesame.com and quizzle.com. These sites allow you to track your credit report in real time from the three US credit reporting agencies, and give you credit scores. These scores are not the true scores used by lenders (they use a different algorithm) but the trend can be useful as a rough estimation in how youre doing. -=7pt Begin tracking all your expenses using a service like mint.com
- Move all your primary banking to a rewards checking account from a credit union (places like Lake Michigan Credit Union, Inova Credit Union, Great Lakes credit union are good ones). Rewards checking accounts have no fees and offer much higher interest than any savings account, and usually will reimburse ATM fees and sometimes give free checks. It doesnt matter if you dont live near the credit union, because internet.
-Open a Roth IRA account, where you can put after-tax money which you will then take out tax free at retirement (or as a one time thing when you buy a house). This a fantastic deal for people in their 20s with low income (and a low tax rate).

For the next 6 months:
-Pay your credit card bill BEFORE the statement cuts each month. That way not only will you not carry a large balance (its good to leave a few dollars there) but if you have a low limit having even $200 there can make it look like a huge utilization and hurt your credit.
- Use your rewards credit card to pay for everything. CashBack/points add up if you use them all the time. If your rent is under $1,500, use SERVE with Isis to load money using your credit card (and get points) and then use the Billpay feature to pay rent and any other utilities you cant pay with a CC.

6-12 months
- ask for a credit line increase on your credit card (depending on the issuer, this might be a hard credit pull)
-get another CC or two. Strongly consider applying for an easy to get AMEX like BlueSky Everyday. All AMEX cards are pretty good. The golden feature about them is that AMEX backdates all cards to the moment you joined AMEX, so all FUTURE AMEX cards will show up as being opened at the same time. This will help your credit score in the future. This is also a good time to try get a workhorse card: a card which gives universal high CashBack/miles. These are the Fidelity Amex (underwritten by BoA), which offers 2% CashBack on everything, the Capital One Venture (essentially 2%, but has an annual fee). If you get denied, call recon (see below).

1.5-2 years:
- If youve been doing everything right you should have a credit score in the 700+ range and be eligible for some pretty nice rewards cards by now. Which ones you get depends on your spending pattern. For example, I applied for the US Bank Cash+ Visa Signature because I eat out a lot. Now Visa Sig cards are difficult for you, because by definition they need to have a credit line of over $5000. I was in fact offered an inferior product instead, but told I can PC later (not uncommon for US Bank). Called once a month, and after two months I had the Cash+.

2 years+
-By now you should be eligible for pretty much any CC you want, although some might be hard for you to get. The holy grail of high end credit cards for people with super good credit are the ones from the Pentagon Federal Credit Union. There you can get 5% CashBack on gas, ~4% CashBack on airline tickets. Hard to get but not impossible at this stage. Just make sure you have no inquiries on quizzle and very low balances on all other cards when you apply.

Beyond: Cant comment, this is where I am

Note: many (if not most) credit card rejections can actually be overturned if you pick up the phone and call the reconsideration line for that lender to talk to an underwriter. Dont be afraid to ask What can you do for me? If youve been a customer for that bank for a while, let them know etc.
Discussion Deals
The cost of personal loans VS UK - Question
Added on : Thursday July 10th 2014 02:00:03 AM
g: 0 Posted By: newnorley
Views: 58 Replies: 2 I've always been amazed how much more expensive unsecured personal loans are in the USA than the UK. Today HSBC will lend between GBP 7,000 - 15,000 at 3.9% APR http://www.hsbc.co.uk/1/2/loans/personal-loan/personal-loans&WT.... as in the states the lowest I've seen in the last 4 years was around 7% APR with discover. Why are loans much more expensive here? regulations, lack of competition?
Question Deals
g: 0 Posted By: CanisMajor
Views: 97 Replies: 0 The threads mentioning this have been archived as far as I can tell, I also posted this in the deal discussion forum Class Action thread. Just got this email today:

A federal court appointed us Settlement Administrator of what is known as the ING Rate Renewal Settlement Program. We previously mailed you a letter notifying you that you will be sent a check from this class action settlement. The minimum payment will be $25 per loan, and the average paymentis expected to beapproximately $175 per loan. You should read that letter in its entirety. This email simply serves as a courtesy reminder of your legal rights and options. Your legal rights will be affected by this Settlement, whether or not you take any action in response to it.

If you either (1) got an Orange Mortgage or Easy Orange Mortgage from ING during the period from October 1, 2005 through May 31, 2009, or (2) had an Orange Mortgage from ING before October 1, 2005 and did a Rate Renewal of your Orange Mortgage some time from October 1, 2005, through May 31, 2009, you can:

1. Do Nothing The borrowers on your ING loan will get a check for at least $25. You give up all claims against ING relating to Rate Renewal.
2. Exclude Yourself You will get no payment. This is the only option that allows you to be part of any other lawsuit against ING that involves the legal claims in this case.
3. Object or Go to a Hearing Write to the Court about why you dont like the Settlement or ask to speak in Court about the fairness of the Settlement.

To find out how much you will be paid if you do not exclude yourself from the Settlement, visit: https://www.ingraterenewalsettlement.com/ . You can log on using the 9-digit Notice # (located at the top of this email) and the last four digits of your social security number to find out the estimated amount of your expected payment, review your detailed notice and obtain other information about this lawsuit, the Settlement, and your rights.=12ptYou can also see the address to which your Settlement check will be sent.

Important Note: prior to 7/8/14, the website was not displaying the proper address for all users. The issue has now been corrected, and we encourage you to verify the address that now appears on the website. You can also call 1-855-770-6954 or write to

ING Rate Renewal Settlement Administrator
PO Box 85006
Richmond, Virginia 23286-9303

Settlement Administrator
ING Rate Renewal Settlement Program

Discussion Deals
Chase doesn't want to lend to ex-cons
Added on : Tuesday July 08th 2014 05:00:07 PM
g: 0 Posted By: Coto
Views: 52 Replies: 0 I have posted my story here once before but long story short I did a ten year stretch from age 20-30. Got out with no money and moved to a warmer climate. 13 years later, I own a business which will probably do 10 million in sales this year. I have a staff of about 50. Married to a girl who couldn't even speak English when we met and who now makes herself a low 6 figure salary and has her MBA. Will be sending our child to the most prestigious prep school kindergarten this year at a cost of $20,000 (which sickens me somewhat as I'm from Mass and I don't know about now, but public school was good enough for all of us). I drove by Milton Academy 500 times and never knew anyone who went there. But alasI live in a state where public education is poor.

Anyway I have never had trouble getting loans, small lines of credit, equipment financing etc. At one point I owed GE a million dollars. So I wanted to buy a commercial piece of property and was told that due to my past, it would probably fly with the SBA underwriters but Chase will not lend me more than $100,000 (anything above that asks if I have ever been a felon).

This is the same Chase that for the last month while I did my ATM check deposits I had to sit there and stare at a notice telling me that it's LGBT month. (I am not against them, I just don't need to know who is sleeping with whom). I am not too worried as I know I can go to another bank but I liked Chase. This crime happened over 20 years ago, why should I have to explain myself to anybody?

It's funny because my wife works in compliance and I don't know what bank it was, but they just got an approval to open an account for someone who was convicted of money laundering. The difference between that guy and me: he is a billionaire and I am not.

Anyway just a slight rant. I made it this far and still have a long way to go. Chase can go stick it!
Discussion Deals
Shopping for mortgage need help !
Added on : Tuesday July 08th 2014 05:00:08 AM
g: 0 Posted By: itsmeprinceus
Views: 45 Replies: 0 Hi guys,
I am in the market shopping for mortgage. I am building a home with Taylor Morrison and they are pushing me towards getting a loan with them. I started doing my own research and found out that rates outside are much lower. This particular lender (https://pfloans.provident.com/?)is offering really low rates compared to any other banks outside just want to get some insight into what kind of things I should be looking for.

Any help appreciated !
Deal Deals
Advice on how to make 60k+/year
Added on : Tuesday July 08th 2014 05:00:08 AM
g: 0 Posted By: AGmagic
Views: 198 Replies: 9 I've been a long time lurker, and signed up a while back. I know 60k/yr is not much, but what can I do to get there? I am currently 26 and still live at home and find it somewhat difficult to make ends meet. I've taken up a frugal lifestyle and still not able to make ends meet. So what options do I have? I know I'll get flamed a little, but doesn't matter I'm hungry to make some $ so I can start moving forward in life.

I currently work a dead end technician job, getting paid low entry level pay. Most my money goes to.. nothing really. about 20% of my check goes to parents, the rest are just food/gas/insurance. Currently had unexpected car maintenance come up so that may be the reason why I'm struggling.

Any advice. I've been in school in and out, its discouraging when I see people with no degrees making 100k. I took no loans out, but recently the last two semesters took loans out. School is expensive these days. At least for me anyways.

Personal Finance Deals
Medical loan advice
Added on : Monday July 07th 2014 11:00:09 AM
g: 0 Posted By: The111
Views: 147 Replies: 2 Here is my situation:
May need to pay ~$60k out of pocket, up front, for a medical expense that insurance won't cover (long story)
Spouse and I both have excellent credit, minimal debt, and stable decent-paying jobs
I could (barely) afford to pay the bill with cash on hand, but would rather borrow it than expend my cash reserves

Do medical loans exist? I know nothing about this. Where should I look?
I would like to think that I could find one with a really low rate, considering both my credit and the fact that I have the entire amount on hand as collateral. But, I have no idea if that is a reality.

Any advice is much appreciated. Thanks.
Personal Finance Deals
college student, house with dad after graduation
Added on : Thursday July 03rd 2014 11:00:04 AM
g: 0 Posted By: mccyjcb
Views: 134 Replies: 6 I'm a 21 year old college student going in to the field of finance and I have two years left. My dad has been looking to buy a house for the last year but since he is 53 and a blue collar worker, he didn't want to buy too expensive of a house. He has recently learned that his whole plant may be shutting down in the next 2-4 years and so he is going to lose his $45k job. After that, he says he is just going to become a trucker. That ruined his plans of buying a house. He came to me with a plan: wait til I get out of college and find a job (hopefully at least $45k a year), and then get a VA loan using his veteran status. So I won't need any down payment and we won't have to pay mortgage insurance and we get the better mortgage rate versus a conventional loan. We will live together obviously, but I will be in a house of my choosing at the age of 23 or 24, we will both be paying $800-$900 a month towards the mortgage. My name will go on the loan that way if he dies, I take over the loan which is fine by me. When I graduate, I will have about $16k in student debt. I already have a 730 FICO score. I do have a part time job and I am saving money for when I move out. My dad wants me to live a better life than him so there is no reason to think he would be trying to screw me over in any way, we are very close. This obviously depends on how long he keeps his job so we can secure a loan, and how long it takes me to find a job. I also have a friend who I know would move in with me so there's an extra $300 a month for the mortgage.

Two years left of college, me and my dad want to buy a house after I graduate and find a job using his veteran status for a VA loan. I get no down payment, no mortgage insurance, a better interest rate and a house of my choosing at the age of 23 or 24. I don't see any downsides to this. Help me point out flaws that way I can go over them with him.
Question Deals
What to do after 401k and Roth / Also TSP Roth??
Added on : Wednesday July 02nd 2014 09:00:08 AM
g: 0 Posted By: nocomprendo
Views: 90 Replies: 2 Sorry if this is repetitive but I tried searching the forums for answers and I'm still a little confused.

I am 27 years old and I am very new to financing. I read a couple books as well as the internet and started two years ago and opened a Vanguard account. This is my second year putting money into my 401k (no match from employer) and into a Roth IRA. Currently I am making around $100,000 and have just paid off all credit card debt, student loans, car payments, and currently rent an apartment ($1,500/month). I also am saving up for other expenses such as wedding/house, and have a savings account with roughly $20,000 (definitely a ways to go for a house down payment in my area).

1. I was wondering what recommendations you guys have for putting my money once I have maxed out the 401K ($17,500) and Roth IRA ($5,500). I was thinking about individual stocks but I don't know much about that area.

My second question is for my girlfriend who is 26 years old. She is currently working for the government and I have urged her to do the same. She currently maxes out her TSP ($17,500, 3% match from employer) and puts money into a Roth IRA ($5,500). I was recently going through her paperwork and found out that they also have a Roth TSP.

2. Does that mean she can put up to $17,500 in her TSP, $17,500 in her Roth TSP, and $5,500 in a Roth IRA?

3. Also, if we do get married, I believe we would be put into a hire tax bracket? Does this mean I should recommend her put money into the Roth TSP to save on taxes later instead of the regular TSP.

Thank you everyone for any advice. This is all really complicating to a non finance guru.

Personal Finance Deals
Bank of America -- messed up servicing transfer, now in default
Added on : Tuesday July 01st 2014 07:00:03 PM
g: 1 Posted By: ppsninja
Views: 96 Replies: 4 - Mortgage with Bank of America for 10 years.
- 1 year they switched the servicing of the mortgage to Green Tree. Had automatic mortgage payment withdrawal, no problems
- May 2014 receive notice that mortgage servicing would switch back to Bank of America. NO other information provided.
- June 18, receive letter that if we want to automatic mortgage withdrawal from bank account, call BoA number. Call number, and get kicked to "relationship manager (debt collection)", indicating that mortgage is past due and in default!
First question they ask "do you want a loan modification"?
- Turns out that in the transferring the servicing of the mortgage back, Bank of America completely screwed up, and didnt continue the automatic withdrawals AND also didnt notify us that we needed to make manual June 1st payments.
- June 18: Immediately went to local BoA, and hand deposited two checks -- June 1st payment, and also July 1st payment (and then would deal with getting the interest and penalties sorted out).
- NOW IN Bank of America Hell:
- June 21st -- they couldnt find the payments. We had to mail them copy of the deposit statement + cancelled check to prove that we actually had paid!
- June 22nd -- Get letter on Escrow -- indicating that we also now owe $1600 on the escrow account" -- they couldnt tell whether greentree had paid 2013 year taxes, so they added the amount to the escrow account, and hence we fall negative on it", and so we need to now pay $1600 to keep the escrow proper! Trying to sort this screw up - -and they indicate they need to now contact the county office to validate that GreenTree had indeed paid the taxes for last year.
- June 23rd -- they found the payments sitting in their system, but couldnt apply it to mortgage for some reason. "Relationship manager - debt collector" -- not capable of doing it!
- June 25th -- finally found a customer rep that wouldnt pass me to "relationship manager" -- sees the payments but can't apply
-- Finally got them to put a note so that I dont get called daily by the "relationship manager - debt collector"
- June 26-July 2 -- spent many hours --- still cant apply the payments to the mortgage

Spent probably over 15 hours on this, highly stressed, impact to credit record(?).

Who to really talk to in BoA -- since any customer rep really dont know who to talk to? They dont even know who to escalate the issue and that the "payment office" can 't seem to apply the payments to the mortgage!

Next: What can I extract out of BoA for my many hours I have spent on this, the stress, the hassle? Have they broken any laws?

Question Deals
The best way to pay off a simple interest loan?
Added on : Monday June 30th 2014 06:00:06 PM
g: 0 Posted By: HiLine
Views: 145 Replies: 2 I've recently financed a car purchase with a simple interest loan. Being a FW-er, I want to know the optimal way of paying off the loan. The interest rate is 3.24%, so I am in no hurry to pay off the loan, nor do I have any desire to front-load unless that would result in significant saving on interests. I remember somebody telling me there is a way to minimize interests by making extra payments annually at the right time, and I wonder if that is true, and if it is, what the right time is.

Several weeks ago, I made an extra payment, and that delayed the due date for the next payment by an extra month, and I don't know the impact on the interest accumulation yet.
Question Deals
Added insurance premiums and I didnt have insurance
Added on : Monday June 30th 2014 09:00:07 AM
g: -3 Posted By: SamPanch
Views: 184 Replies: 4 When I first bought my car I had insurance and then I let my auto insurance expire and didn't cover it for a while. My bank hit me with excessive auto coverage amounts onto my loan. What is my best course of action to remove some of the penalties? I understand I'm at fault but the amount is crippling. Any thoughts on how to approach a bank would be greatly appreciated.

Personal Finance Deals
g: 0 Posted By: Neidman
Views: 27 Replies: 0 Press release from Public Citizen with details on the decision:
June 26, 2014

Contact: Angela Bradbery (202) 588-7741
Scott Michelman (617) 899-9076

On Wednesday, Judge Dee Benson of U.S. District Court in Utah awarded Public Citizen clients John and Jen Palmer $306,750 ($102,250 in compensatory damages and $204,500 in punitive damages) against the online retailer KlearGear.com. The company had demanded $3,500 from the Palmers for writing a critical online review of the company, then ruined Johns credit when he refused to pay.

As a result of KlearGear.coms actions, the Palmers lost credit opportunities; suffered anxiety, fear and humiliation; and spent weeks without heat in their home for themselves and their 3-year-old son when their furnace broke and they were unable to obtain a loan to replace it.

Public CitizensuedKlearGear.com on the Palmers behalf in December. When KlearGear.com failed to respond, the court granted a default judgment declaring that John did not owe the $3,500 and setting a hearing, held Wednesday, to determine damages. After an hour-long hearing at which both plaintiffs testified, the judge announced the award from the bench.

We are gratified by Judge Bensons ruling, which appropriately compensates the Palmers for their ordeal and punishes KlearGear.com for its abuse of the credit reporting system in retaliation for the Palmers speech. The court sent a strong message that corporate bullying of consumers would not be tolerated. The Palmers are relieved that Johns credit has been restored and they feel vindicated by todays award.

Original archived FW thread:
Credit Deals
Rental Property as a Primary Residence
Added on : Wednesday June 25th 2014 06:00:08 PM
g: 0 Posted By: andresaur
Views: 6 Replies: 0 Hi Guys,

Hoping for some simple straight from experts like you. Let say I am buying a rental property with non-occupant loan (higher rate of course) but decide not to rent it out but live in it - would this be illegal?

Thank you,
Best Way to Take Advantage of BT Offer?
Added on : Tuesday June 24th 2014 06:00:08 AM
g: 0 Posted By: jimmyrules712
Views: 126 Replies: 1 This should start an interesting thread.

I have a BT offer on my old AARP card (the gift that keeps on giving?). 0% APR for 1 year with a 2% fee with a $250 cap. I have a $21k credit line, so if I take it all out that comes out to a 1.12% fee. I normally ignore BT offers, but $21k at 1.12% for 1 year is hard to pass up. I'm looking for any good ideas on how to best take advantage of this, while still having access to the money to pay off the BT in 1 year. I already know how to turn the BT into cash in my checking account, just not sure what I want to do with it from there. I have a 4% mortgage and 1.99% auto loan, other then that no debt so I can't really use this to pay off higher interest debt.

1 year CDs are only paying about 1.10% so that's out.
Stock market is too risky, I don't want to be stuck with the bill if there's a crash
Bonds may be an option, but also has risk

What else?
Investing Deals
Advice on rebuilding credit
Added on : Sunday June 22nd 2014 09:00:04 PM
g: 0 Posted By: dgsion
Views: 62 Replies: 0 Hi guys, I know there are some sharp folks here. Long story short I'm 29 years old and about 4 years ago I lost everything I had and some $ borrowed from banks in the stock market. That, coupled with student loans made my credit score go from near 800 to the floor. I checked it a few months ago and I think it was around 500 something. My question is what would you recommend for rebuilding it? I know most places won't extend a line of credit, via retail or others but I heard some are easier than others.. someone said Amazon was easier? My debts are still outstanding but written off, so correct me if I'm wrong but I believe the credit score will not be dinged if that's the case. Cheers.
Question Deals
Death of Spouse, whats next?
Added on : Sunday June 22nd 2014 07:00:08 PM
g: 0 Posted By: whyhello
Views: 101 Replies: 1 Hello all-

A friend of mine has passed away, and now there have been a few questions arisen.
They were married. Man and woman. Man has passed away. Any insight information will be appreciated.
There is no will. There is no power of attorney.

Under both names, husband death, widow does not work. (Contacting mortgage company to see if there was any insurance to cover the rest of the loan.)

Credit Cards? (Widow may be just an authorized user.)
Under both names, husband death. Widow liable?

Husband business?
Under husband only, husband death. Assets go to widow?

Medical Bills?
Under husband only, husband death. Widow liable?

Husbands assets - such as car, jewelry, etc?
All goes to widow?

What about for the kids of the dead spouse?

Are there any benefits in this matter?

Social Security benefits?

Kind Regards. Thanks
Discussion Deals
Penfed 5/5 ARM Closing Cost Help
Added on : Sunday June 22nd 2014 04:00:08 AM
g: 0 Posted By: SiltyKinect
Views: 114 Replies: 0 I am in the process of closing a home in Montgomery County, Maryland and trying to see if I can benefit from 10,000 closing cost.
Couple of Questions:
Assuming a purchase price of 550000 and 20% down I have received the following Cost Illustration from wells Fargo and Penfed Online calculator.

Can anyone with experience on this let me know which one is more accurate?

Also will I get the full benefit of 10,000 from Penfed for this loan amount?

Wells Fargo estimates 17,000 and Penfed estimates 11,000 which I think is wrong.


SURVEY 340.00
Total 17,782.68

Penfed's Closing Fees

PenFed's origination charge $65.00
Your charge for this interest rate $0.00
Required services we select $432.50
Appraisal Fee $350.00
Credit Report$ 16.50
Flood Certification Fee $7.00
Tax Service Fee $59.00
Title services and lender's title insurance $2,112.00
Owner's title insurance $2,008.50
Government recording charges $175.00
Transfer taxes $6,350.00
Total Estimated Settlement Charges $11,143.00

Let me know if you need any further info.
Real Estate Deals
g: 1 Posted By: robronson
Views: 118 Replies: 4 From my understanding of federal student loan debt that is discharged after 20/25 years (depending on your plan), you become liable for income taxes on the amount forgiven. While I don't expect this to remain once people's student loans start getting discharged in 10 to 15 years under these relatively new plans, because people won't be able to pay income taxes on a phantom $300k of student loan debt (after 25 years of compounded unpaid interest on a $50k to $100k principal) and will get their elected officials to change the law.

However, we can't prepare for that, and reading a thread on FWF tonight got me to learn about avoiding income taxes on discharged debt through "insolvency tests". I did some googling and read this IRS information here:


To summarize, it looks like the IRS will perform this insolvency test to determine whether you have to pay income taxes on those $300k of forgiven student loans in 20 years. Simply put, the test looks to see how much debt you had forgiven compared to your assets, and whatever the difference between the two numbers (liabilities minus assets) determines how much of the forgiven debt you need to pay taxes on.

Unfortunately, and VERY UNFAIRLY, the IRS counts retirement assets as assets. Which is ridiculous because $100k in a 401k isn't worth $100k. It's worth maybe $80k after you pay taxes on it. And if you had to withdraw it early, with a penalty, it's worth maybe $50k to $60k depending on your marginal tax break. Thus, the purpose of this thread is to strategize ways to make the insolvency test work in your favor because as written, it's very much against you.

Much like Medicaid fraud, I mean Medicaid asset protection, you probably don't want to start doing these things in the year your debt will be forgiven. So while the earliest any of us might possibly be forgiven for debt is still probably 10+ years out (since this plan didn't start until the early 2000s), it's worth thinking about in advance.

Here's some random ideas that may work:

1) Buy a house. As expensive as the bank will lend you money for, with as little down payment as possible, leading up to the debt forgiveness. It appears that the liability of the house counts in the liabilities column. So if you buy a $200k house with $40k down, then you now have $160k in Liabilities and $40k in assets for a net Liability of $120k.

2) Start converting 401k into Roth IRA in the years leading up to the loan forgiveness. Pay the taxes owed on the conversion out of the 401k money if necessary. Pay a penalty if necessary. You will get hosed for every $1 you have in your 401k or Traditional IRA because they will count every 60 cents to 80 cents in actual value (after you distribute the money and pay taxes/penalties) as $1. Since $1 of a Roth IRA is worth significantly more than $1 of a Traditional IRA or 401k, but the asset test counts the dollars the same, it may be worth converting even if it pushes you into a higher marginal tax bracket.

3) AOR BT Time, if those still exist in 10+ years. That's debt. If the cash vanishes, maybe because you went to Vegas, then the cash isn't an asset. But the BT is definitely a liability.

4) Borrow money from friends/relatives. Make it official. Notarized contracts. These are all liabilities.

5) Prepay for things you can prepay that won't count as assets. Prepay your child's education or daycare. Etc.

6) Combine strategies. Don't just have a notarized piece of paper that says you borrowed $300k from your best friend a week before the loan discharged. No one will believe that. But if you have a $100k left on a mortgage, $5k owed to your cousin, $20k on credit cards BTs, convert all of your 401k to Roth IRA over a few years, then the total strategy looks legit on a whole.

Curious to hear people's ideas on these. I don't feel bad for discussing them because (a) the concept that the IRS will tax you on income you didn't get and (b) the concept that they'll count your 401k assets as $1 for $1 are so totally biased against you that anything and everything is fair game, as long as it's legal. Ethics no longer applies.

I'm writing this for student loan debt forgiveness but feel free to use this to discuss any current 2014 debt forgiveness/insolvency testing issues.
Discussion Deals
Specific mortgage request, Loan officers please review
Added on : Friday June 20th 2014 04:00:13 AM
g: 0 Posted By: SoCalJohn
Views: 31 Replies: 0 Much to my dismay, my wife has decided that she wants a bigger house with a bigger yard. I currently own 2 houses in the same city, I will have to cashout both houses to come up with the downpayment for the new house and possibly sell one or both after acquiring the new mortgage.

I am just about done with a cashout refi on a condo owned free and clear, 70% ltv investment property 4.875% no costs no fees 30 year fixed $500k value
Primary residence $1.3M value owe $500k on first mortgage with Heloc of 170k with third federal

Issue is that we have a short sale from 3+ years ago, it did not effect the cashout conventional with our 700+ fico scores, but I have been shut down by morgan stanley and bank of america for jumbo cashout with short sale.

Can any of you mortgage guru's steer me to a lender that will cashout a jumbo loan with a short sale?

I have found financing on the 2M purchase, 40% down stated income 1 year arm at 4% for a .25 discount point cost. Only requirement is 60 months PITI reserves, which we will have after cashing out both properties with 60% of 401k counted.

Thanks for any help

Properties are all located in Southern California, Primary is SFR
Personal Finance Deals
80LTV vs 90LTV/PMI effective interest rate comparison
Added on : Thursday June 19th 2014 09:00:13 AM
g: 0 Posted By: Bend3r
Views: 147 Replies: 1 Advance apologies for another mortgage related thread and the long number-heavy post (some forum members don't like numbers)... but hopefully it's also useful to others as well. I have liquid assets available and am trying to pick which LTV to go for in the loan.

Looking into first purchase and comparing costs between an 80LTV and a 90LTV 30-yr fixed loan, I would like a sanity-check if possible on comparing the "effective rate" I pay on the "extra" 30-yr loan of 10% of the property value. By effective rate, i'm referring to what the equivalent 10LTV loan would be if The 90LTV loan was instead two loans: an 80LTV loan with the other terms and a 10LTV loan at a higher rate.

The two example loans I'm comparing are both from Box, both 30yr fixed, and both at an interest rate where the "lender fees" portion is lowest before being applied to principle. They charge 1 point for decreasing interest rate by 0.125, but if their "lender costs" goes below $0, they only pay out about 0.66 points per rate increment. My reasoning here is the points "break-even" point is 12 years for the 0.66 point increments but only 5 years for the 1 point increments.

Prop. Value: 190000
RATE P+I Payment PMI APR Loan 1 - 80LTV
($152000) 4.125% $736.67 $0 4.172% Loan 2 - 90LTV
($171000) 4.125% $828.75 $55.58
(around 0.4%) 4.362%
My rough calculations/Conclusions
Scenario 1: I hold the property for 30 years - This is the "easiest" comparison. I believe in this case I can just compare the "APR" rates. Loan 2 is 0.19% higher than Loan 1, but that 0.19% is spread over 90LTV, so for the last 10% of the loan the "effective rate" would be 4.172%+9*0.19% = 5.882%
Am I overlooking something obvious and making an error in this calculation?
5.882% seems acceptable to me for a fixed 30 yr loan when I expect the Fed Funds rate/inflation to raise to at least 2-4% in the next 5 years or so. I think it's reasonable to easily obtain a 2-4% real return on long-term investments.

Other Scenarios/Problems with oversimplification
1. PMI looks like it's not deductible in some/all situations.
2. The PMI is somewhat like Points (and for Points there's a curve based on actual duration the loan's held for) -- but instead of all being paid at Day 0, it's all paid during the first ~9.5 years of the mortgage while LTV is over 78 or 80%. This means the "effective rate" charged for the extra 10% loan value is higher if I don't hold the mortgage for all 30 years. I could probably generate an excel sheet to compute the effective rate with varying terms. On the other hand, if the property value increases, you can possibly get the PMI could drop off earlier than expected, driving down the overall costs...
Personal Finance Deals
High Limit Credit Card vs Personal Loan
Added on : Wednesday June 18th 2014 11:00:07 PM
g: 0 Posted By: tierney7090
Views: 80 Replies: 0 Hello...I'm new to this site and only signed up because I have a semi complicated question to ask. I have 50k in irs debt. I set up a payment plan and have made every payment on time for the last year. I am also current on recent taxes due. Despite this, they continue to send me letters and harass me on a regular basis. I can't take it anymore. I want to pay them in full and be left alone. I don't own a house or anything like that so I need either a high limit credit card or a personal loan to pay them. I have a credit score of somewhere around 800 give or take. My tax return for last year shows 190,000 income. I have accounts with chase and Bank of America but neither of them offer personal loans, only credit cards. I also have a gold Amex with no preset spending limit. With chase I have a car loan of around 25k which I have also been overpaying for the last year since I got it every month on time. I have about the same amount of money in my savings account and another 1000 in my checking. I also have a 6000 credit card with them which is always paid on time. My Bank of America account is checking and savings but I only use it for taxes so I use it for my direct debit for the payment plan through my checking and also put money in my savings to get my checks to pay my estimated taxes with. I know that when you apply for a loan or credit card and get rejected that it makes it harder to get approved elsewhere. So what I wanna know is what I am most likely to get approved for: A credit card through chase or Bank of America for 50k...or a personal loan through citi bank who I have no relationship with for 50k?
Question Deals
High Limit Credit Card
Added on : Wednesday June 18th 2014 10:00:04 PM
g: 0 Posted By: tierney7090
Views: 0 Replies: 0 Hello...I'm new to this site and only signed up because I have a semi complicated question to ask. I have 50k in irs debt. I set up a payment plan and have made every payment on time for the last year. I am also current on recent taxes due. Despite this, they continue to send me letters and harass me on a regular basis. I can't take it anymore. I want to pay them in full and be left alone. I don't own a house or anything like that so I need either a high limit credit card or a personal loan to pay them. I have a credit score of somewhere around 800 give or take. My tax return for last year shows 190,000 income. I have accounts with chase and Bank of America but neither of them offer personal loans, only credit cards. With chase I have a car loan of around 25k which I have also been overpaying for the last year since I got it every month on time. I have about the same amount of money in my savings account and another 1000 in my checking. I also have a 6000 credit card with them which is always paid on time. My Bank of America account is checking and savings but I only use it for taxes so I use it for my direct debit for the payment plan through my checking and also put money in my savings to get my checks to pay my estimated taxes with. I know that when you apply for a loan or credit card and get rejected that it makes it harder to get approved elsewhere. So what I wanna know is what I am most likely to get approved for: A credit card through chase or Bank of America for 50k...or a personal loan through citi bank who I have no relationship with for 50k?
Sell rental to help pay off mortgage of primary residence?
Added on : Wednesday June 18th 2014 09:00:13 AM
g: 0 Posted By: jpfern15
Views: 131 Replies: 5 I searched and found a lot of info about rentals, but I want to make sure I get the specifics of my question answered clearly.

My wife and I bought a house in 2009 and lived there until November of 2012. We then bought a new house in December 2012 and moved into that one. Since then we've been renting out the one we bought in 2009. Here are the numbers:

Rental Property:
Property Value: $360k
Mortgage: 135k (30yr fixed)
Monthly Payment: $880
Rent: $1,600
Monthly Net gain: $720

Primary Residence:
Property Value: $600k
Mortgage: $340k (30yr fixed)
Monthly Payment: $2,050

I'm enjoying the $720/month income from the rental, but I'm thinking that if I can sell it for around $360k (my mom is a broker and provided me with this info), that's $225,000 in profit. I could take this and refi my primary residence and lower my loan value to $115k.The key is that the savings in my monthlymortgage payment would be greater thanmy rental incomeand we couldrealistically pay off our house in 5 years leaving us with no house payment. However, conventional wisdom shows that property assets consistently appreciate in the long run, which is why I'm asking you guys if it's better to keep property when there is a compelling reason to sell.

My goal is to own 5 houses by the time I retire in 25 years. What I'm wondering is if it would be better for me to pay off my primary residence and have my only liabilities be against investment properties, or should I keep the rental and continue investing while still owing money on my primary residence? Note that we make about $200k/yr (including rental income) and have no other debt of any kind outside of these two mortgages.


Personal Finance Deals
g: 0 Posted By: slovell
Views: 150 Replies: 5 Around 4-5 years ago, we were going to do a cash out refi with Oxford Lending. The day that we were supposed to attend the closing, an employee from Oxford called to tell us that our loan would not be going through. He said that underwriting had taken a second look & decided not to approve our appraisal after all because there hadn't been a comparable house sold in our area in the last 3 months (we live in a very rural area). We were shocked, but this guy had been inefficient from the start. We dropped the plan to refi. Fast forward to now & we were offered a rate reduction from Chase (our original mortgage co.) We decided to go ahead with the process due to it being no cost. We were shocked when their underwriting called & told us that we had a $1000 bill with the local title company that was scheduled to close the previous loan. They recommend that I call them. When I contacted them, they stated that it was due to such things as abstracting fees, attorney opinions etc. I was shocked & couldn't believe they hadn't contacted us earlier or why Oxford Lending had even had those things done if they weren't going to proceed with the loan. My question is, are we legally responsible for these fees? If not, is there anyway to make Oxford pay them?
New User Question Deals
g: 4 Posted By: Mr0ffic3r
Views: 275 Replies: 5 Expecting lots of red, and its OK. My name is Mr0ffic3r and I was a deadbeat, I admit it. College and the whole being invisible in your 20s got the best of me. For the record, I am no longer a dead-beat. You guys (FWF) have put me on the right side of the road. As you will read below, I tried to make this right. But sometimes 'right' is not the correct thing to do for my family.

2000-2004 I took out 70kish in college loans. $55k of it Private Alternative Loans. By Private I mean from a major Bank and the note was not guaranteed by a non-profit group. Essentially, just a regular loan, but an educational loan on credit reports. Also, my mother was a co-signer.... don't ever co-sign, anything!

I defaulted in 2005 only on the Private Loans. My first job $15/hr - Between rent, food, drinking, car, there was nothing left for School Loans. My Federal Loans (Perkins/Stafford/etc) I paid off quickly since I knew Federal Loans are no joke. For the Privates, they (The Original Creditor) called a few times, I never picked up to talk. They sent a few demand letters, I never took any action and apparently neither did they.. Calls/Letters stopped in mid-2006.

My credit was trashed (my moms too) - low 500s. She made as much as I did at the time, single mom supporting my younger brother, so no way she was able to pay the loans.

Fast-forward to 2009. Calls/letters start coming in again. This time not from the Original Creditor (OC) but from a Collection Agency (CA) This time a little older and wiser (Thanks FWF) -I take action. First thing I did, sent a Certified/Return Receipt Letter telling them to stop calling and validate the debt. They listened, not one more call, and not another letter. They never validated. Why couldnt they send a copy of the promissory I signed that I had in my hand?

Fast Forward to 2012. Im making more money, I actually put some away if they were to come after me. Credit Reports say Loan is over $70k now, charged off, and still owned by the Original Creditor. To make things right, I call the OC and speak with their collections department. Right away are willing to settle the debt for $35k-ish. Settle?A Student Loan? Why YES please! I ask for the 'settlement agreement' in writing so I know they won't come after the rest (or sell it), and that the lates/charge-offs/etc are removed my credit report if possible. Mind you, this is from a top 5 Bank.

All they had to do was send me that letter, instead, I was informed that We are not secretaries and dont send letters. I was flabbergasted. The agent said my credit report would be marked as 'PAID' for this loan. I mention to him that in a few months, this loan will fall off my credit report, and if they are unwilling to remove the negative the marks, just leave the report as is. DONT TOUCH IT as I dont want it re-aged. NOPE, they cant do that either. They have to report it as 'paid.' I explained to the agent, 'why would I pay if this will haunt me for another 7.5 years.' If I dont pay, it will fall off CR in a few months. There was silence, he put me on hold to talk to his management, came back and said, You are right, nothing we can do. I told them I will consider their offer and we ended the call.

Havent heard a peep since (been almost 2 years).

All the loans came off my (and my moms) credit report. Credit Scores went up 200+ points to the high 700s . I am in a state with a 5 year Promissory Note - Statute of Limitation (SOL). My main concern was that the promissory note states that Ohio laws will govern the loan, and Ohio had a 15 year SOL on a promissory note. However, that state recently passed (and implemented) legislation to decrease that to 8 years, and it applies retroactively.

I consulted with 2 NACA attorneys, and both said my states SOL would apply anyways if they were to pursue. My state is where the loan was disbursed, where I have always lived, and where the promissory note was signed. But under both states now, I am out of SOL. All I read online is doom/gloom regarding Student Loan Default, and on how it will haunt you forever, garnish your wages/SS, tax refunds, etc. This is still on the back of my mind, but I'm starting to think it's not very likely they can legally collect on this loan now. What does the FWF collective think of this?

Now, why did the OC not pursue this hefty defaulted loan, especially since there were 2 people to sue/collect from? Remember, this was an 'alternative plus' loan not backed by any government entity. It does not show up on any government student loan database. I highly doubt this was a $70k 'oversight'. I pretty much walked to up to their door, with a check for $35k. All I wanted was a receipt, they couldn't give me one. What gives?

To the Obligatory 'Pay Your Bills Deadbeat' posts I see in my future... is 'I Tried/Wanted To' an acceptable response?
Personal Finance Deals
HOA "fee" advice
Added on : Tuesday June 17th 2014 09:00:20 AM
g: 0 Posted By: jkk4life
Views: 253 Replies: 5 I'mbuying a townhouse in NJ, contract has been signed since April and the closing is June 23rd. My HOA sent a "closing statement" to the seller's attorney only which asks for the following:

$200 HOA fee for July - no issues at all with this
$600 check to be placed in escrow account - Specifies this is *not* the first 3 months HOA fee. My lawyer says this is to protect the HOA in caseI go in foreclosure and don't pay the maintenance fee. But I see this as just an interest fee loan to the HOA until I move out 10 years(or later) from now which I am none too happy with but my lawyer says I have no way out of this.
$500 "documentation processing fee" - This one I refuse to pay(if possible)as I think it is pure extortion and there is no way they can justify having incurredthis cost. My lawyer even said he has seen a fee before but never over $200.

This fee was never disclosd to me by the HOA and was not on the listing (listing agent says she was not even aware of the fee). This was actually sent as a fax on June 11th to the seller's attorney who then sent it to my attorney's closing agent on Friday otherwise I would have no clue about it. It was also on the initial prehud I just got on Friday from the settlement agent.

My lawyer is still waiting to hear back from the HOA management company but from talking to him it seems that the only way I can get out of paying the BS $500 fee is force the seller and/or real estate agent to pay it otherwise I do not close. I know that the sellers are closing on their new house on June 30th, so I have some leverage there.

Any other thoughts on how I can approach this?

Real Estate Deals
Sallie Mae loan rises from the dead?
Added on : Tuesday June 17th 2014 02:00:06 AM
g: 0 Posted By: basil25mint
Views: 87 Replies: 3 I just got a letter from Sallie Mae. They claim that I owe them $8,000 for a student loan I took back in 1998, and that the loan is in default.

I of course don't remember a thing about this loan, since it was 16 years ago.It does not show up on my credit report. They have never once contacted me about this loan before today.

My credit score is pretty high, about 750 according to Credit Karma.

Here's my question: If the loan is legitmate, and it is defaulted, why is not on my credit report?

Should I try to settle with Sallie Mae? Ignore them?
Credit Deals
Purchasing a house from a family member
Added on : Monday June 16th 2014 10:00:07 AM
g: 0 Posted By: akamekon
Views: 260 Replies: 6 My grandparent's are planning on selling their second home and would consider selling to me. What would be the best way of making this transaction with my grandparents receiving a lump sum payment (or similar) equal to the value of the home?The house is worth ~$310,000.00 on the open market now.

Would it be possible to get a home equity loan with a high enough LTV? What tax considerations should I look for?

The plan would be for them to sell it to me, and I would either be living in the home while renting the other bedrooms, or I would be renting the entire home.

While I do have more than enough income to pay for a home mortgage, it would be extremely difficult to qualify for a regular mortgage on another home because it is 75% freelance income and I do not receive enough in a "regular paycheck" for a bank's liking.
Personal Finance Deals
private student loans without income?
Added on : Friday June 13th 2014 12:00:09 PM
g: 0 Posted By: hchang9
Views: 87 Replies: 3 Hi guys. I was wondering if anyone knew of any private student loans without a cosigner or income verification. This is for my girlfriend who decided to back to school. She's attending a public university, but the grants and loans (maxed both subsidized and unsubsidized loans) provided by FAFSA isn't enough to cover her living expenses. She's works during the week while attending school at the same time trying to make ends meet, but I think she might break soon. We tried looking for a private lender, but she doesn't make enough money from her side job to qualify for a private loan. Her family members either have poor credit or are unwilling to cosign. I am a student myself and don't have the income to cosign for her. Her credit is between 650 and 700 right now. Any ideas out there?
Question Deals
IRA Contribution Deduction vs AGI
Added on : Friday June 13th 2014 10:00:12 AM
g: 0 Posted By: chickenballz
Views: 55 Replies: 0 Haven't been able to find an answer to these question, thought I'd ask the FW crowd:

My AGI exceeds the threshold that allows for full IRA contribution deduction.

1. What can I do to reduce my AGI (line 37 on 1040) in order to qualify for full IRA contribution deduction? FSA and 401k are already used, am not self-employed, no tuition/loans.
2. Is line 37 of 1040 the AGI that is used to calculate IRA contribution deduction eligibility? Line 32 of 1040 is the IRA deduction, so it seems like the chicken or the egg type of deal if you're close to the threshold cutoff.

Investing Deals
Is there a way to game auto loan ?
Added on : Friday June 13th 2014 09:00:15 AM
g: -1 Posted By: vistaluck
Views: 306 Replies: 6 Ok so I want to buy a car from private owner but I don't wanna pay the sales tax on it. Lets say the car is listed $15,000. I just wanna pay $15,000 alone no sale tax. However, base on what I heard the lean holder will be the bank and it will have to go through DMV to put the lean holder name on it. I have sold cars before and I know that if I write it down as a gift and the buyer will not pay tax on it. That was all cash deal though and I write the new owner name on pink slip. In my case, I can't write my own name on it. So is there a way work around it. Or just game the system by going through a few more steps. Can I take a personal loan first to pay the seller and then re-faience the car with the bank. What smart ways you guys can think of ?
Credit Deals
Refinancing from 15 year loan to 30 year loan?
Added on : Friday June 13th 2014 12:00:05 AM
g: 0 Posted By: RagingBull
Views: 33 Replies: 0 Question regarding mortgage. I am not sure if it is still good idea for me to refinance. Right now I am paying 4.5% for 15 year loan
If i am qualified and able to get a 30 year loan for 3.5% with no points, and I continue to pay the same amount that I am paying now
should I refinance or not? My balance now is about $310,000, I borrowed $400,000 a few years ago
Personal Finance Deals
Student loans with MBA program
Added on : Thursday June 12th 2014 03:00:05 PM
g: 0 Posted By: garyshultz
Views: 153 Replies: 2 Hi Guys,

Question for those that got student loans through MBA program. Does the student loans go directly to the school to pay tuition or can I get a hold of the loan amount to use for rent/food/etc...

I also read that if my student loans that I get privately overpay my school that my school will send me a refund check possibly which is another method I guess.

So I guess what im asking is can I control the funds that I get from my student loans for my MBA program?

New User Question Deals
g: 0 Posted By: j129
Views: 105 Replies: 0 A little backstory.
I am a foreign Medical graduate with a green card (will get my citizenship later this year).
I've decided that I don't want to pursue medicine as a career. I want to try something Managerial and based on research, have decided to do a Masters in HealthCare Administration.
All that I've read, seems to say that this is a growing career path with a lot of potential.

My financial situation.
Used to work as a pharmacy tech while I was preparing for the USMLE,but after a lot of procrastination and doubtI have finally decided that I didn't want to take the USMLE.
I don't want to be a doctor.
I don't have much saved (been in the US of A for 3 years), have about $4k in my bank account.
Live with my parents but I don't ask them for any money. They put a roof over my head and food on the table for no cost, and that is more than enough for me.

Plans for the future.
After spending a lot of time trying to figure out what I want to do with my life (am also really interested in stuff like Advertising, Media, things of that nature, but have no idea how to get into that, since I don't have any background in media whatsoever)
and decided on the MHA program.
I live in CT and there are two universities here that offer the MHA program.
The one that I like is the University of New Haven.

The cost is $825 per credit (42 credits) = $34,650. I have spoken to the Financial Aid officer at the university and he told me that I can easily get a Federal Direct Unsubsidized Student Loan (and it's not need based).
FA can pay a maximum of $20,500 per year, so for the first year (27 credits = $22,275) I'd be short a few thousand + cost of books. So there's another loan called the Graduate Plus Loan that I can get, which will pay for the rest.
Interest Rate for the former loan is 6.21% and for the latter is 7.21%.

My questions.

1. Is financial aid taxable?

2. The Median salary for someone with a Masters in Healthcare administration is about $70-80,000. A faculty member I spoke to, said that I should easily be able to start off with a $55,000 salary at least. And it'll go upwards from there.
Does taking a loan of $40,000 (assuming books etc) make sense?

3. Hoping to get an assistantship that'll cut the tuition cost by 50%. If it does get cut, would it be possible for me to hold on to the surplus FA I'm getting? Because....

4.. I'm single right now...But the plan is to get married next year. Yes...I won't have a permanent job, and I know all the problems I'll face getting married before I'm able to stand on my own feet, but it's complicated and it needs to happen by next year, or it'll never happen.
My fiance will not move here until she received her green card, and that's not going to happen till we get married, so it's going to be a while before she comes here, and hopefully by then, I'll be really close to completing. (Begins in Sept 2014. Ends in March 2016).
Iwill need about $15k..if I save that from FA, can i just use that? The reasoning behind that being, that I would not have to pay off the loan till 6 months after I graduate giving me enough time to find a job and start paying it off.
As opposed to taking a personal loan (also something I know nothing about) but which I think, I'd have to pay back sooner and the interest rate would be higher?

4. Do local universities carry more weight in their home towns? I asked local folk. Friends of my mother from church, and they all seem to have a high opinion of the University of New Haven.
It is ranked #101 here.I couldn't find a ranking for it's MHA program but I've heard that a lot of universities pay for these rankings so I don't know how much attention to pay to it.
I guess my main worry is, is it worth it? Am I getting into something that's not good for me?

5. A friend I know from medical university who later moved here to do her Masters in Public Health (she was always passionate about it), says that in her opinion $35k is a lot (no subsidized in-state costs because UNH is private) and if I'm spending that much, I'd rather go to a better university.
Problem with that reasoning is, that I'd have to move to a different state. Have to take a bigger loan to pay for housing and food and end up in even more debt. It's easy for her to say because her tuition was paid for by her parents.
But what do you guys think?

6. What's a better way to get jobs? Networking or interning? I have no problem doing tons of internships but I would rather try and find some part time work that'll put some money in my pocket.

I would highly appreciate any help that I can get.
I never went to high school or undergraduate college in the U.S so I really don't know how all this functions.
Would appreciate any suggestions, ideas that you'd provide.

Thank you.
Personal Finance Deals
HELOC: Penfed vs other CUs in California
Added on : Wednesday June 11th 2014 09:00:08 PM
g: 0 Posted By: muskan123
Views: 27 Replies: 0 Hello,

Need some feedback on Penfed loans in California. I have a single family home which has increased in value since I bought and would like to take some equity out for investment purposes(~150k). I am looking for max out LTV for max term (15 yrs). I am considering Penfed vs Local CUs like StarOne, Provident etc.

Any information on the following would be helpful.
1) How have the appraisals fared for Penfed vs other CUs. (Local CUs directionally seems to follow Zillow, but not sure about PenFed)
2) Time and hassle for Penfed HELOC approval for HELOCs vs other CUs
3) Hidden costs

Interest rates of Local CUs are comparable to Penfed (3.75%), though LTV is on the lower end (75% Local CU vs Penfed).

Is it better to go with Local CU for HELOC/HEL?

Discussion Deals
Help Deciding between Mortgage Options
Added on : Tuesday June 10th 2014 06:00:06 PM
g: 0 Posted By: JayPC
Views: 118 Replies: 0 Hi FWers,

Here's my situation. I have been shopping around for mortgage loan for a new construction condo:

Loan 1: 10% down. Bank is ready to finance 90% at 3% interest rate with 0.5% PMI. It will be a 7/1 ARM with 30 years amortization. Around 3500 closing fees (not including taxes and home owners insurance which will be same across all loans).

Loan 2: 10% Down. Broker quoted for 80/10/10 piggybank loan with first mortgage at 3.25% (30 years) and second mortgage for 5.25%. Around 4000 closing cost.

Please help me in deciding which loan will be better. I am planning to stay in this house for about 7-10 years.Any suggestions?
Question Deals
best rates for apartment commercial multifamily property loans
Added on : Tuesday June 10th 2014 02:00:08 PM
g: 0 Posted By: exp0nential
Views: 171 Replies: 0 Looking to purchase a mixed use 4plex. Anyone know banks/credit unions/mortgage companies that have good rates? I called a Tower and Hanscom and they both don't lend for mixed use properties.
Question Deals
Fairbridge Financial Services ..... Legit ?
Added on : Tuesday June 10th 2014 01:00:09 PM
g: 0 Posted By: OverTheTop22
Views: 71 Replies: 0 I am currently in the market for a loan, credit is average, not the best but also not the worst. This company has offered me the best deal , 7.25% interest rate. They have a website, phone number, and address. The website is ok, phone numbers works, but will only connect you if you have the persons extension, which I do have. I am not sure to proceed or not. I am 99.9% sure they already have my social , so I am not sure too much what the risk would be. Has anybody heard of them? Used them? There is little to no information on them on the web from what I have seen.

Any help anybody may have, thank you
New User Question Deals
Inherited/will inherit nearly half a million, what to do?
Added on : Monday June 09th 2014 05:00:12 PM
g: 4 Posted By: echpirate
Views: 2974 Replies: 53 Hey everyone,

I was lucky enough to graduate college with no debt, a car that was given to me and no student loans etc. My parents also said they would pay for whatever grad school I have which is obviously wonderful. On top of that I had about 180k in stocks and funds when I graduated and not have about 210k since I inherited the first part of a family farm being sold and will inherit another ~240k in 2016.

In total I will have about 430-450k depending on how much I spend and earn between now and then. I know that may not sound like a lot of money these days but I'm only 25 and to me it is. What would you do with it? I plan on investing it to turn it into millions someday but I bet that won't be too easy. I'm very frugal and cautious with money and won't spend it on anything I don't need. I'm not trying to flash it it anyone's face either I just wanted to see what other people think.

Thank you!
Investing Deals
Inherited/will inherit over nearly half a million, what to do?
Added on : Monday June 09th 2014 06:00:07 AM
g: 0 Posted By: echpirate
Views: 3 Replies: 0 Hey everyone,

I was lucky enough to graduate college with no debt, a car that was given to me and no student loans etc. My parents also said they would pay for whatever grad school I have which is obviously wonderful. On top of that I had about 180k in stocks and funds when I graduated and not have about 210k since I inherited the first part of a family farm being sold and will inherit another ~240k in 2016.

In total I will have about 430-450k depending on how much I spend and earn between now and then. I know that may not sound like a lot of money these days but I'm only 25 and to me it is. What would you do with it? I plan on investing it to turn it into millions someday but I bet that won't be too easy. I'm very frugal and cautious with money and won't spend it on anything I don't need. I'm not trying to flash it it anyone's face either I just wanted to see what other people think.

Thank you!
Investing Deals
ON SALE: Valentino - My Own Code Leather clutch
Added on : Saturday June 07th 2014 09:00:05 AM
DIY has gone chic with the Valentino Garavani »My Own Code» clutch. Designed to be personalised with your initials, the bag is made of calfskin leather, leather strap on back of bag and features a double internal compartment. You can personalise your bag in one of the following Valentino boutiques worldwide: USA - Valentino Boutique New York City, Valentino Boutique Los Angeles. Europe � UK, Valentino Boutique London, Sloane Street. Hong Kong - Valentino Boutique Landmark, Valentino Boutique Ocean Center.
New Personal Finance Software Gauging Interest
Added on : Saturday June 07th 2014 08:00:09 AM
g: 0 Posted By: samiam68
Views: 137 Replies: 3 I have been using Quicken since the 1990s, the latest version being 98. That is correct Quicken 98 is the last version that I consider useful, well put together, and actually "quick". Every version since has become more bloated, less useful, buggier, and slower.

Even though I cannot get online updates from financial institutions for transactions, bill pay, or stock quotes, I find the tool indispensable and cannot see organizing my financial life without it. I enter all transactions manually, which actually helps me weed out any errors during reconciliation. I have caught a number of mistakes by banks over the years using this method.

I currently have about 40 active accounts, over 50 archived accounts, have never truncated yearly data, and the program handles tens of thousands of transactions almost 20 years worth - with ease.

However, I had to do some hacking with the actual EXE files and font files to get this program to work properly in Windows 7, and I cannot get it to behave well in Windows 8 at all. I wont even get into how I got the 16-bit installer to work in a 64-bit OS.

I have tried replacing it with MS-Money, AceMoney, Moneydance, Grisbi, YNAB, GNU-Cash, and a recent version of Quicken, only to be greatly disappointed with all of these products. I will not get into the details, but all of these programs either lack features, have too many useless features, have horrible user interfaces, are slow, are buggy, or are not able to import historical data in QIF format.

Im an experienced developer and have been toying with the idea of writing my own Personal Finance program. However, this would be significant enough of an effort that I would like to capitalize on it and actually make some money for my troubles. I am reaching out to the FWF folks to see if there is any interest in a new Finance Software and the features that would be desired.

These are the features that are important to me:
- Ability to run on current and future versions of Windows.
- High strength encryption for data file(s).
- Ability to split all income/expense transactions into multiple categories.
- Ability to track stock portfolios with easy ways to see annualized returns.
- Ability to handle stock splits, spinoffs, return of capital, margin interest, and other advanced transactions.
- Ability to record loan payments with automatic amortization.
- Ability to track rewards points and airline miles.
- Some basic built-in financial calculators.
- Yearly budgeting with auto-create feature and weekly/monthly/quarterly views.
- Scheduled transactions with reminders.
- Ability to handle many years of data without having to do year-end truncations.
- Easy/automatic backups.
- Automatic recovery in case of data corruption.
- Customizable reports and graphs.
- Comprehensive import of QIF files.
- Comprehensive export of all data to Excel or Access.
- Very fast execution / performance. I mean everything should be nearly instantaneous.
- No sunset policy on anything.

Features that I may consider implementing:
- Cross-platform compatibility Linux, Mac.
- Automatic updates of stock prices.
- Online connector ability to upload encrypted files and access/synchronize using a secure web application.
- Online backup.
- Portable app for iOS, Android, and Windows Phone (in conjunction with an online connector).

Features I am not considering:
- Automatic transaction download from financial institutions this is extremely tedious and complex to implement.
- Advertising no way!
- Marketing of add-on products.
- Making this open source.

If you have any suggestions for other features, please share.

I would also like to get some feel on whether folks would be interested in purchasing something like this and which price point do you think is fair.

$30 for each new version.
$40 for one version and 3 free upgrades.
$50 for one version and unlimited future upgrades.

Again, this is just a concept at this point, and will likely take about a year to actually build the software if I go forward with it, but your feedback is greatly appreciated.

P.S. Please dont point out that Yodlee and Mint are the way to go. I, and some other folks, do not trust the security of online aggregation services (due to very good reasons).

P.P.S. I know some here will suggest using Excel or equivalent, but I am looking to create a comprehensive and integrated solution with far more capabilities than a spreadsheet could provide.

Discussion Deals
Is this idea legal?
Added on : Thursday June 05th 2014 02:00:05 PM
g: 0 Posted By: classicaltutor
Views: 162 Replies: 4 My father had a stroke a month ago. He was the main provider. My mom works 2 jobs, and makes about 1200 a month. He is unable to work for the foreseeable future. My mom needs cash to pay off a high interest loan they have on some property. She has an older car she is willing to "sell" me. The idea is I get a used car loan, and buy the car from her on paper. She keeps the car and makes the payments. Is this legal? I don't have $8,000 to give her, but want to help her and if this is legal, it would be an easy way to do it. She has excellent credit- 820 score as of last week. They are very modest in their finances, always lived paycheck to paycheck, but have always paid their bills. I have no concerns about her paying the loan back.
Thanks for any advice! They have no other collateral to draw $ from.
Refinance Options
Added on : Tuesday June 03rd 2014 11:00:09 AM
g: 0 Posted By: bgwozdz
Views: 128 Replies: 5 Primary residence, intend to pay loan off(within 15 years)and keep house as rental income in the future. Plan on moving out 5-10 years from now.
Cash reserves is not an issue and no other outstanding debt accept a $6K student loan at 1.625%.

Current mortgage info:
30-year fixed -4.875%
$134K remaining after 50 payments
70-75% LTV (Conservative Estimate)
Adding $250 to the principal for the last 10 payments (sporadically added $100 in previous payments)

Refinance offer through original Lender
15-year Fixed 3.25% / 3.428% APR ($249 point cost)
If paying closing costs upfront, estimated terms at close.
$129,500K loan balance, $8,800 closing costs. Including escrows.
If rolling closing costs into loan.
$138,500k loan balance

Closing costs of course jump out to me right away. Not excited about paying $8,800 up front, or adding an additional $9,250 to the loan balance.


Do the Closing costs seem resonable?If needed I can break it down by line items.
Should I roll in the closing costs? My thought is that I can just take that $8,800 and fund my retirement accounts.
Penfed 5/5? I just started investigating that option today, currently at 3% with the no closing costs offer. Wouldmy situation benefit going that route since I am intending to keep the home and pay off the loan? Can someone educate me on how it would be the best option for my situation.

Thanks and I understand there is similar topics as I did utilize the search feature. However, after doing some homework I still am left wondering about my scenario and I also seem to be going up against the clock as I understand rates are climbing and a favorable job report at the end of the weekis expected to push these rates higher.

Question Deals
No cost pre-approval letter
Added on : Monday June 02nd 2014 11:00:10 AM
g: 0 Posted By: dmlavigne1
Views: 59 Replies: 0 Do anyone in the FWF community know where I can obtain a no/low cost pre-approval letter? I do not intend to do financing so rate is not important, for your entertainment, the following are my builder options:

1. Financing -20% down on base price and 25% of the options on contract signing, the rest at close.
2. Cash -20% down on base price and 25% of the options on contract signing, 25% at framing, 25% at drywall, the rest at close.

Even though this is in a development, and the builder is delivering, I would rather not give him a loan with no leverage (the 20%+25% is bad enough.) It blows my mind that a cash offer should be way more secure than the financing but the builder won't accept a letter on assets and won't accept his terms in escrow.

All I want is a pre-approval letter that I can show him, write the 20% check then bring a check to close. Ideas?

Low interest loan advice
Added on : Sunday June 01st 2014 08:00:06 PM
g: 0 Posted By: bluebag
Views: 90 Replies: 3 I'm looking to fund my wife's graduate education. Unfortunately, being stuck in the immigration process, we're still not eligible to get a student loan for her. Although I can fund her education with savings, I'd rather not do that. I also would like to take the opportunity to build my credit. Right now my credit score is at around 760 with a ~5 year credit history. I'm looking to get a loan for about $15K for a year. I am exploring two options at the moment - Secured loan via a credit union or a new high limit credit card with 18 month interest free financing or mortgaging my car. The credit card has a down side as the school charges a ~3% fee on the transaction. But with a 1% Cash Back on the credit card, the overall interest rate would be 2% and I'll get 18 months to pay it off. However, is there a sure shot way of getting a high credit limit card? I have worked hard to get a good score, I don't want to mess it up by applying for too many credit cards.
Credit Deals
Saving for a house - 401k
Added on : Sunday June 01st 2014 07:00:10 PM
g: 0 Posted By: nd617
Views: 6 Replies: 0 My employer will match 50% any amount I put into my 401k (up to the max of $17,500 of course). I am trying to save for a house (probably need ~150k for down payment, currently have 50k). Would it be better to put all $17,500 and get the free $8,750 from my employer and then take a loan from my 401k when it's time to buy or only put 8ish in my 401k and use non-401k money to buy. I guess what I'm asking is what are the drawbacks/penalties to using 401k moneys for a home purchase? One other complication, I still have $40k of student loan debt (about 4.5% interest). I was planning on just paying the minimum until I buy, good plan? Thanks everyone!
Real Estate Deals
may not be as simple as it seems ?
Added on : Friday May 30th 2014 11:00:06 AM
g: 0 Posted By: vistaluck
Views: 146 Replies: 5 so long story short. some 1 owe me about $30,000 cash 1 year ago but he doesn't have cash to return it back to me so he is trying to give me some electrical equipments to cover the debts. The initial plan was to make at least double of that $30,000 but I only got $5000 as interest. The equipment worth $1800 a piece market value. However, he changed his mind again since these equipiments can sell so he don't want to give all to me at once. If its all at once, it would be 16.7 pieces of equipments so I guess its 16 pieces + $1200 cash or something.

So now, he just wants to give me discounts as pay back. He sold it to me at $1600/piece but $200 is paying the debts to me. I still have to pay him $1400/piece cash to buy. So lets say I buy 10 pieces, he is paying off $2000 debts to me. so it will take a while to pay off. Each month, I may just take 10 pieces.

My question is which method is actually a better deal. Have him give me all 16 pieces + $1200 or the slower method and may look more like a better deal because the price per piece is only $1600.

I know I made a mistake anyways. However, this guy already gave me a lot of deals before and I already made some money from him. Therefore, I can really go flip on him and get him pissed off.

Through this, I learned its never a good idea to loan money to any of your friends even the ones who made you money before because you never know when they may scam you and get a portion of your hard earn money back.

I still think this is a huge loss for me. You know how I calculate it. So if you got $30,000. You can pay this to principle of your mortgage, you will instantly save another $30,000. And when you pull out equity loan from your house, you can pull out another 75% of that $30,000 you just put in so thats $22,500 so you just put in $30,000 in and make $52,500. Plus you shorten your loan time a few years by putting in that $30,000. So this $30,000 probably has just make you $82,500 total.
Personal Finance Deals
g: 0 Posted By: SyZpuzzler
Views: 223 Replies: 3 Hello, I made a post a few weeks ago about purchasing a house but that is down the road, and this is more pressing

Currently, this is my situation: $39k salary, $29k combined student loan debt between 2.8% and 5.9%, $8.5 car loan at 1.9%, and a $3,400 CC balance on my Wells Fargo card I've had for over 10 years. As far as I know, my credit is good (excellent??? No late payments on anything in years, no other outstanding debt, I've held car loans before, I've had student loans for many years, etc. I don't know the actual score because when I go to annualcreditreport.com it just gives me a detailed summary but not my actual FICO score)

I currently have $1,000 I want to pay towards my credit card, and I'm looking to pay off the remaining $2,400 within a year (hopefully within 6 months ...)

I haven't gotten a new card in years, including a debit (also WF). I know there are tons of programs to move your balance, get 0% for a year, get 2% Cash Back, all sorts of stuff

My main question is: should I move my $3,400 balance to a new card with 0% down and potentially some rewards like Cash Back, then pay it down within a year and use that card moving forward?

Follow up questions:

- Once my current card is paid down, can I close it? Do I get a credit hit if I close a current line of credit?
- If I get a Cash Back or rewards card, is the correct way to make purchases moving forward to just use the credit card then at the end of the month pay it 100% off with the money from my checking account I would have used anyways?
- I know Discover has some sort of program where they tell you your credit score every so often. Are there any other programs? Ideally, 0% + a Cash Back rewards + a FICO score would be fantastic but that seems like a pipe dream
- Is it worth it to call Wells Fargo and basically pull the 'Hi, I'm a loyal customer. I see offers to move my balance over and get a 0% interest, is there anything you can do about my interest rate?' card AND THEN if they lower it, STILL move the balance over?
- My current credit line is $4,800, bumped from $3,600, bumped from $2,500. Will I more than likely be approved for at least a $3,600 limit on the new card? (Enough to move $3,400 + the 3% fee)

Yes, I know there is a credit card thread but it has 112 pages and I simply cannot invest the time into that much


Credit Deals
Strategy on buying 2 homes
Added on : Thursday May 29th 2014 02:00:07 PM
g: 0 Posted By: dxulab
Views: 253 Replies: 10 Currently I'm renting an apartment. I have $250k cash. Initially I wanted to buy a new construction with all of the cash. But I just saw a 2010 home for sale for ~$200k. I'm thinking to buy this home with $200k cash and rent it out. Use the remaining $50k cash as 20% down payment for the new construction, get a 30-yr loan, and hope that the rental income will pay for the mortgage of the second home, which will be my primary residence.

Zillow calculator tells me the monthly mortgage payment (including tax/insurance/HOA) is ~$1300 and I think the 1st home will generate similar amount of rent, so ideally they will break even. My job is relatively stable with ~$3600 monthly income. I want to pay off the 1st home because I want to avoid 2 mortgages and keep things simpler. What do you guys think of this plan? Any potential risks? What are the tax implications? Any suggestions and comments are highly appreciated.

Real Estate Deals
Help me Pick the Best StudentLoan
Added on : Thursday May 29th 2014 01:00:09 PM
g: 0 Posted By: Tzeentch99
Views: 95 Replies: 0 Hey guys,

Applied for 2 private student loans and I would like to know which is the better deal. Specifically is there a way to calculate an APR so I can compare apples to apples? Both are for $32,700. The two options are:

1) 15 year Fixed @ 6.49%

2) 10 year Fixed @ 6.24% with 2% origination fee.

How can I compare these two to see which is the better deal. Especially how do I take loan 2's origination fee into account?
Question Deals
Need help consolidating non private student loans
Added on : Thursday May 29th 2014 06:00:10 AM
g: 0 Posted By: gaf2255
Views: 82 Replies: 0 I'm looking to consolidate several federal subsidized student loans, however most banks I have found will only consolidate private student loans. I started out the year with about 43k in student loan debt and paid off 13k so far this year just to bring it down. I used my BB account to pay the 13k so I accumulated CC points as well. I intend to pay off the remaining balance in 4 years. The loans range from 6-6.8%. I have applied with SOFI as they refinance student loan debt with rates as low as 3.625%, but they only do so with certain colleges so I wasn't eligible. What I was thinking I could do was to calculate what I would pay in total for the next year, fund my BB account, and pay that amount off. Therefore I would essentially be paying zero percent on lets say 8k, and then pay off that amount over the year. I would still however be paying interest on the remaining balance. I could also pay off the full balance via BB, pay no interest at all for the first year, and then transfer the balance in a year when my zero percent cards expire. Any thoughts, or suggestions would be appreciated.
Personal Finance Deals
Financial planners to help with college aid, etc.?
Added on : Thursday May 29th 2014 05:00:14 AM
g: 0 Posted By: Dougmeister
Views: 124 Replies: 3 We have a financial planner (Edward Jones) and we're satisfied, but he doesn't know all the "ins" and "outs" of applying for aid, scholarships, grants, loans, etc.

This is our first time around with college (our oldest is finishing his junior year in high school).

We heard about one of these companies that supposedly "specializes" in this type of thing. The particular company is called "Ivy League Wealth Strategies", and even the name *screams* "run away" to me.


They want to charge hundreds and hundreds of dollars for their services. I can't find any reviews on this company (yet) by Googling. Might call the BBB.

Anyone have informed opinions on whether or not these companies are worth it or not?
General Economics Deals
Tax Implication of Limited Liability Company
Added on : Wednesday May 28th 2014 06:00:11 AM
g: 0 Posted By: UZ22
Views: 99 Replies: 0 Hi Everyone,

I am thinking about buying one or two rental properties for investment and rent them out. However I was told because of possible liability issues, I would better start a Limited Liability Company and manage them under that or get an umbrella insurance policy.

I would be taking a HELOC loan for this investments. my assets do not exceed 60,000 at this point.

What are the Pros and Cons for each of these scenarios?


Personal Finance Deals
Best place to get a conventional renovation mortgage
Added on : Wednesday May 28th 2014 03:00:06 AM
g: 0 Posted By: lazyace
Views: 0 Replies: 0 I am considering buying a condo that need a complete rehab, or at the very least new baths and kitchen. This is an estate sale and the building is not FHA approved. What is a good place for a conventional renovation loan? I know Wells Fargo is offering them, but are they an OK lender? From what I have read, there are many potential problems that could arise in the process, so a decent level of customer service is essential.

I am also an immigrant and a first time buyer i.e. no experience with home ownership, lenders, or contractors. This kind of project seems too ambitious, but I have been looking for a long time and pretty much everything about this condo is perfect other than the fact that it needs work. Any and all advice will be greatly appreciated.
Need Some Help With Student Loans...
Added on : Tuesday May 27th 2014 06:00:09 AM
g: 0 Posted By: hurricanedarby
Views: 40 Replies: 0 Hello all! So I currently have $58,000 in federal student loans and $17,000 in private loans stemming from my under-graduate degree in Communications (Long story about how it got that high; I promise it wasn't from abusing the system or living a baller lifestyle). I make about 55k a year and have no other debt (no auto or credit cards). I've refinanced the private loans to a 4.92% rate and consolidated the federal loans to about 6% on an income based repayment program (estimated 13/14 years to complete per Sallie Mae). I just wanted to see if anyone had any advice for refinance options or any other advice? I'm wary of the discharge programs such as Teach for America or Public Service as my understanding is that those programs can be altered at any time. Thanks!
Personal Finance Deals
Football Manager 2014 [Online Game Code] $12.49
Added on : Monday May 26th 2014 10:00:03 AM
g: 0 Posted By: GreenTrash
Views: 14 Replies: 0 LINK

Play it whenever, wherever, however
Inclusion of cloud-save technology which means that managers can now pursue a single career from any computer, anywhere in the world. FM14 also includes integration with Steam Workshop making it easy for managers to create and share customised FM content such as photo/logo packs, new and custom competitions and tailor-made challenges using the new Challenge Editor.

Improved Match Engine
The 3D Match Engine has seen extensive improvements, including enhanced AI, improved lighting and player animation, individual player character and kit models, more realistic player reaction to on-field incidents and a range of optimisations which combine to make this the best looking and fastest FM Match Engine yet.

Tactical overhaul
There has been a complete redesign of how tactics are created, selected and implemented with player roles and team strategies becoming even more prominent, definable roles for players for multiple positions, new player roles and instructions and improvements to rival managers' AI so that theyll adapt their tactics more readily over time.

More realistic transfers and contracts
FM 2014 features a revamped transfer module where opposing clubs and managers adopt a more realistic approach when making or responding to transfer offers. In addition, a number of new real world transfer clauses have been added, such as the facility to loan a player back to the club hes just been bought from and the option to offer a combination of cash and loan players, as well as new contract clauses such as a sub bench appearance fee. On top of this, the old turn-based system of transfer negotiations can now be done two ways, the tried and tested system and a new live system, similar to that used in FMs contract negotiations.

More sophisticated board interaction
Contract negotiations are more realistic in FM 2014, as managers and boards can now make demands and lay down their respective visions for the club in both initial job interviews and contract renewal discussions. Managers can also attempt to renegotiate transfer and wage budgets as a reward for staying loyal if theyve been offered a job by another club, with the outcome helping aid their decision on whether to move or not.

Improved interaction with players, staff and media
There is now better interaction between players, managers, their rivals and the media; for example, members of the coaching staff now offer feedback on how reserve and youth team players are performing. Managers can also ask key players to have a word with unhappy squad members, while the introduction of an end-of-season meeting allows the manager to let the squad know how they have performed and set targets for the coming season.

News system
The news system has been overhauled so managers can now deal with many club matters directly from their inbox. In addition, news is now colour-coded, based on category, and contains more detail for example, scout reports now appear as a single news item with a top-line report on all players scouted and the facility to shortlist or make an offer for each of these players.

Enhanced user interface
Major changes have been made to FM 2014s user interface. Key areas have been redesigned including the training overview page, the transfer centre and the news homepage while widespread changes have been made across the games user interface. The language employed throughout the game has also enjoyed a major overhaul and now corresponds more closely to the language of real world football.

Football Manager Classic evolved
Managers can now choose more than three playable nations in Classic mode for a more immersive experience. In addition, FMs fast play mode now includes Transfer Deadline Day, a Match Plan wizard and new unlockables.

PC Minimum System Requirements:

OS: Windows XP, Vista, 7, 8
Processor: Intel Pentium 4, Intel Core AMD, Athlon. Windows XP: 1.6GHz+, Windows
Vista/7/8: 2.2GHz+
Memory: 1 GB RAM
Graphics: NVidia GeForce FX 5900 Ultra, ATI Radeon 9800, Intel GMA X3100: 128MB VRAM
DirectX: Version 9.0c
Network: Broadband Internet connection
Hard Drive: 3 GB available space

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Amazon Coupons
Should We Sell Our House or Refinance?
Added on : Sunday May 25th 2014 04:00:10 AM
g: 0 Posted By: threehearts
Views: 31 Replies: 0 My husband and I keep going back and forth whether or not we should sell the house or refinance. We would save about 1-1.5% refinancing. We could probably make a gain of $40,000-$60,000 if we sell. The problem is that the home prices are higher so we'll have to finance a higher amount when we purchase another home (albeit at a lower interest). My husband thinks that we can use part of our earnings to pay off student loans and credit card debt, which totals about $35,000 and still have some money to put down and the payments will be roughly equal to what we are paying now because of the lower interest rate. We feel saddled with the debt and would love to be able to live debt free and save almost $1,000 in payments per month. Which route is more economically responsible. If we refinance, we will probably save about $200. per month. It would take longer but we could climate the debt by using the snowball method. Or we could try selling and knock it all out at one time. We also have a place, free or charge, to live while we look for a new house.
Question Deals
Looking for cheap car insurance in CA
Added on : Friday May 23rd 2014 09:00:13 AM
g: 0 Posted By: peteron
Views: 108 Replies: 1 Hi I recently moved from GA to CA due to job relocation in sillicon valley area. When I updated the address with Geico, I received a whopping quote of $974 for 6 months. This is a lot more than the previous amount I paid (487$) in Georgia. Now I am asked to pay the difference (>$700) caused by location change. I am 27, married, and never get any tickets in 5 yrs driving history. I was involved in two accidents and I was not at fault. I'd say I am a good driver per se. My car was newly bought in 2013 (2013 model), and loaned through Penfed. I wonder if there are any cheaper options, at best under $1.2k per year. Please share your knowings. Thanks!

current coverage:
500 Deductible conprehensive
500 Deductible collision
Personal Finance Deals
U.S. mortgage collectors gag homeowners in loan deals
Added on : Thursday May 22nd 2014 06:00:11 AM
g: 0 Posted By: turboporsche
Views: 56 Replies: 1 Well folk's, we can't go back in time and correct the stupidity of what Wall Street and Banks have done to the US economy (and the World economy). What they are now doing is stopping homeowners for being able to complain or voice their personal experience in going through HELL. This country is getting ready for the second wave of the mortgage meltdown situation. That is a vast majority of folk's that took out home equity lines (seconds). These types of loans are most often negative amortization loans, meaning a minimum payment is collected for a measured amount of time, then it becomes fully amortized. This adjustment period is about to begin shortly. Most homeowners are NOT ready for this adjustment. The economy is anemic... and folk's are doing their best. What this article represents is the worst in banking and servicing, as people going through difficult situations need to be empowered with information. The banks or their loan "servicers" are attempting to take this power away...


Discussion Deals
Statue of limitations
Added on : Thursday May 22nd 2014 06:00:11 AM
g: 0 Posted By: MarkRobinson
Views: 162 Replies: 6 I took loan of $20K but now I can't in situation to repay it off. Can any one tell me what is the minimum statue of limitations for which debt collector legally can sue me for debt delinquent?
Question Deals
More Money = More Problems/Stress? How To Stop It.
Added on : Thursday May 22nd 2014 05:00:12 AM
g: -5 Posted By: robronson
Views: 67 Replies: 7 I started making triple my old salary recently by going into consulting and it's nothing but stress and headaches. Before, when I was making roughly $70k a year, I was really happy maxing out my 401k (to the actual max, not the employer match max), maxing out my Roth IRA, maxing out my iBonds, and I didn't really have much left over after living expenses so I basically spent the rest, with the knowledge I had been doing well in my savings (hitting all the maxes), and was comfortable.

Now I have first-world 1%-er problems because being self-employed I can contribute my employer contribution to the 401k as well. I had to shift around my existing Traditional IRA money into my Solo 401k to be eligible for a back-door Roth contribution (which was a huge hassle because none of the account transfer forms worked as expected so I wasted hours and hours getting this done). I have to max out an HSA. I have two sets of I-Bonds I can max out (individually, and corporation's EIN). I have to pay quarterly estimated tax. I have to avoid overpaying the estimated tax, so I don't give the IRS a tax-free loan, but I have to keep the money liquid and free to pay the tax, so I have to maintain a Rewards Checking account and meet the requirements to get the higher rate on this money. I'm juggling multiple credit cards for their rewards, moreso than before, because of all the businesses expenses I have, reimbursable by the client.

I say "need" and "have to" somewhat facetiously because I don't really HAVE to do those things. But it would cause me great stress to let $5k per year in credit card rewards go unearned because I didn't juggle credit cards on my $10k/month business travel expenses. And it would feel bad to not earn 2% yield in a rewards checking account on $20k sitting there waiting to pay SE Taxes.

I made a spreadsheet to track my estimated earnings throughout the year, for tax planning purposes, and I'll be "in debt" to myself until November. In other words, it's not until November that my incoming consulting money will be enough to max out the 401k, IRA, HSA, IBonds, and pay the taxes owed on the income. If I can't keep getting gigs continuously through November, I'm screwed. My contingency plan is to use money earned in 2015 to pay 2014 employer-contribution 401k, IRA, and HSA because those aren't due until April 2015 (and technically I think my employer-contribution 401k can be paid by October 2015 if I file an extension). Of course, this contingency plan is only kicking the can down the road and I'll have problems meeting my 2015 contribution maxes if I use 2015 income to pay old 2014 "debts" to myself.

I thought making a lot of money was supposed to be fun and stress-free? I just feel like Damocles' Sword is dangling over my head. I don't mean this to be a thread about my personal situation. Let's discuss how more money has led to greater stress in your life and what you've done to reduce the stress.
Discussion Deals
PenFed No Closing Costs Mortgage Promotion ... one gotcha?
Added on : Wednesday May 21st 2014 04:00:09 PM
g: 0 Posted By: jrstinkfish
Views: 75 Replies: 0 We applied for a home loan through PenFed and were approved. We asked about the promotion for 5/5 ARMs where PenFed will pay closing costs. The rep told me that both seller AND buyer HAVE to use their preferred title and settlement company for the promotion to apply (in my case, Epic Real Estate Solutions). My agent had never heard of such thing (or heard of the company), and predicted the sellers would balk at having to use a company they didn't choose. We submitted the offer anyway with the requirement, and as expected, they agreed with everything except having to use PenFed's preferred company. The seller agent had the same reservations as my agent -- both obviously want to sell the home for what we're offering, but apparently this is so out of left field that it's making our (very good, imo) offer go sour.

To the people who have successfully used this promotion to cover their closing costs in the past, were you also required to have both parties use PenFed's preferred company? We can afford closing costs, but between paying $1000 or whatever PenFed does not pay, vs paying $7000, seems like a better deal for us
Discussion Deals
g: 0 Posted By: sniperruff
Views: 25 Replies: 2 Looking to purchase my first home. I understand thefundamentals of home financingas I've read up the basics of mortgages over the past few weeks.

Background: I have a job in finance with decent pay but the whole industry is unstable and everyone is "fired at will" - there is no heads up, or guaranteed severance. I don't think I will be permanently unemployed if I lose my job but there could be employment gaps. Therefore, I am looking for some protection for the worst case scenario.

The house I'm planning to purchase will be about $500k. The house is in an area in NYC with good rental activity, and I project to generate at least $3,000 a month in rental income (2 units, before expenses). Therefore I should only have to pay for water and other smaller expenses. This is a new building that qualifies for property taxes abatement for about 10 years (I think) so taxes will be minimal.

I've saved up enough for 20% down, closing costs (~$30,000), and about 22 months of mortgage payments for 30-year fixed @ 4% (or 16 months for 15-year fixed @ 3.25%). Monthly payments (assume 20% down, so $400,000 mortgage) are as follows:

30-year fixed @ 4% = $1,900/month ($287,500 total interest paid over life of loan)
15-year fixed @ 3.25% = $2,800/month ($105,000 total interest paid over life of loan)

A 15-year fixed mortgage certainly saves me a lot of interest expenses, but I also don't want to be wiped out should I become unemployed for an extended period of time. My friend suggested me to go with a 30-year fixed, then prepaid whenever possible to lower my interest payment. Assume the best case scenario if I prepaid $900 monthly, then this happens:

30-year fixed @ 4% = $1,900/month + $900 prepaid ($151,000 total interest paid over life of loan)

In a nut shell, I would pay about $50,000 for an "insurance" that could let me fall back onto a 30-year mortgage with $1,900 monthly payment, which my projected rental income should cover along with other house-related expenses.

Here are a few questions:
- Is such an insurance worth it? I know it's obviously subjective, but a $50,000 insurance sounds like a lot.
- What about refinancing as a form of insurance? What if I go ahead with a 15-year fixed and then refinance (although interest rates would most likely have gone up) should I need to?
- Is this commonly done? Any potential hurdles?
- I read that the approximate cost of refinancing is 2-6% of the total mortgage. Assuming I fall onto hard times in 5 years (by then I'll have $286,000 principal left on the mortgage), does that mean it'd cost about $15,000 to refinance (assuming 5% refinance cost)? Any other associated costs?

Sorry for the long write up and thanks for any tips

TL;DR: is refinancing a cost-effective way to lower monthly mortgage payments?
Personal Finance Deals
Penfed 5/5 or BoA 10ARM Mortgage - please help me decide
Added on : Tuesday May 20th 2014 03:00:06 PM
g: 0 Posted By: 1X2Y3Z
Views: 60 Replies: 0 Hi:
I am taking a loan of around 640K after 20% down payment and here are the two options I am considering. I intend to stay in this home no more than 10 years and hence I am considering these two options

Penfed -- Current rate on the 5/5 ARM is 3%. 2% max every reset, with 5% lifetime max. Will help with closing costs upto 10K but I need to use their title services which as per the GFE cost at around $8000 -- $5000 for title services and lenders title insurance and $3800 for owners title insurance. I read elsewhere in these forums that they don't treat them as simultaneous insurance policy which other title services companies quote at $4600. Also, I believe the first 5 year reset is a minimum 4% because what I am getting now is promotional rate of 3%.

BoA - Current rate on the 10/1 ARM is 3.25%. 5% max on first reset, 2% max subsequent resets, with 5% lifetime max. Will provide lenders credit of around $2000 and I can use my own title service which is around $4600. One additional cost compared to Penfed is $800 origination fee.

I must mention that dealing with Penfed is extremely difficult, very poor response whereas BoA rep is very accessible and very eager to help and expedite.

Any views, recommendations and/or things I should be considering as I make a decision? Please help me make a decision.

Thanks in advance...

New User Question Deals
Young couple starting retirement savings
Added on : Tuesday May 20th 2014 10:00:06 AM
g: 0 Posted By: novicenancy
Views: 109 Replies: 5 Hi everyone!

I am 24 and my husband is 26. We do not have a company 401K or anything like that yet but would like to start saving a little bit for retirement. We are planning to start a Roth IRA but would like some feedback from experienced investors. We come from families of limited means and have no family or parents to speak to about this subject, but I am hoping some internet strangers could offer advice.We know the importance of investing and saving for our future, but we are afraid of making a mistake with what little money we have!

So our current plan is to open a Roth IRA with $1000 initial investment and $200 a month while we continue to build our income, pay down debt aggressively, and save more in our emergency fund. For what it is worth, we have no high interest debt or credit card debt. Just a house (3.5%), one car (2.9%), and student loans. We are going to open the IRA in my husband's name with me as the beneficiary because he is two years older and can start drawing from it penalty-free earlier. Within 2 years, we will be able to contribute the max of around $450/month to meet the annual $5500 cap on that account. Meanwhile, we want to find new jobs and hopefully max out 401K contributions before Roth contributions but we will just have to cross that bridge when we get to it. We have pretty meager retirement goals, we plan to have a home paid off and live below our means as we currently do, hopefully travel a little and help our family when they need it.

So with that background, I need some guidance in choosing where to open the IRA and how to invest. Mutual funds, index funds, stocks, bonds, etc... it is all very overwhelming. So far I have been looking at Vanguard and investing in their index funds, or ScottTrade and investing in mutual funds. I am unclear about how much work this will be on our part -- in a perfect world the money would be automatically transferred from our checking account each month and be invested into the most promising place without any work from us. Of course we will check it periodically, but I don't want it to be a daily topic of discussion or something we have to actively worry about month to month. Since we are looking at 40+ years before retirement, we are comfortable taking more risk with our money now and riding out the market and changing our portfolio to a high percentage of bonds down the line as we near retirement.

Any advice you can provide would be very much appreciated. Thank you in advance!

Investing Deals
g: 0 Posted By: remick
Views: 87 Replies: 0 http://www.amazon.com/gp/product/B00JBNWRKI

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Totally Free Deals
g: 0 Posted By: Excelsius
Views: 167 Replies: 5 I am hoping someone can either put my mind at ease or give me a way out:

We recently bought a car using an auto loan check from Capital One. The dealer wanted to run a credit check, but we refused and instead chose to wait for the check to clear. We did not leave the down payment (30%) and said we'll pay that when we pick up the car. We were told we could pick up the car in 3 business days. After calling Capital One, we found out that our check was not even submitted to them, yet the dealership had told us that they did in fact submit it to Capital One. Then, talking to the manager, found out that the check "has to" go through their own bank over which they have no control and can take 10 business days to clear (15 days from the sale day). Capital One says that the check is cleared within 24 hours after being submitted and I even read online how dealers simply call Capital One and release the car. So they clearly mislead us and are really trying to run the credit since they keep saying that if they do that, we can pick up the car right away.

We got a really good deal on the car, with all the extras. I also have the vin number of the car we left behind. What I don't understand though is are they somehow trying to screw us over? We read and signed several contracts, but they did not give us a copy and told us we'd get them at the time of signing. I am not sure if we can get out of this now or if this is even a cause for alarm. I certainly don't want to wait for 10 days to get another unpleasant surprise. I don't understand where they're going with this. By now they know that we're not going to let them run a credit check, so the only way they can get paid is if they cash our check. The contract we signed was only about paying them with other funds if the check bounces, but that contract can't apply if they don't actually submit the check. Another question is about how long they can delay this transaction like this. I was told that 10 days is max, but I'm not so sure about what they say anymore.

An insight from a dealer would be especially welcome. Maybe there is a new scam going on that we don't know about.

New User Question Deals
Car hit while getting serviced at dealership
Added on : Friday May 16th 2014 05:00:10 AM
g: 0 Posted By: tante
Views: 76 Replies: 1 I just received a call from the dealership saying my car was involved in an accident in the service area. I am heading to take pictures of my car in about an hour but I was hoping to get some advice from people here first before I talked to them. They already offered to fix the damages and put me in a loaner car but I am leaning toward getting the car fixed at a shop of my choosing. They told me they would need my car for 5-7 days so the damage sounds pretty extensive.

I am assuming that I am dealing with their business insurance versus an auto insurance company so how does that change things. And lastly how does a diminished value claim work?

car is a 06 Toyota 4Runner

and pics will be coming.
UCLA vs USC Decision
Added on : Thursday May 15th 2014 04:00:06 PM
g: 1 Posted By: mateoeyoo
Views: 102 Replies: 2 Hi everyone, I'm a 2nd year community college student and I'm transferring after this Spring semester. I'm interested in Business (accounting and finance), and I have been admitted to UCLA and USC. Hopefully some of you can give me some insight on which decision would be the better choice for me.

At UCLA, my major would be Business Economics (or Economics if I don't fulfill the GPA requirement). My net costs would be $13k a year, after financial aid. What appeals to me at UCLA are their attractions outside of campus (Westwood, Beverly Hills, Malibu), their worldwide name recognition, their esteemed dining food, and their generous financial aid. Nonetheless, not studying business takes me aback. The Business Economics major itself is not a conventional business major, it is majorily econ focused. Is it accurate to say that an accounting undergraduate is qualified for all the occupations an economics undergraduate is qualified for? Or, can I expect to have the same jobs?

At USC, my major would be Business Administration (Marshall School of Business). My net costs would be $26k a year, after financial aid. The prestige of USC's business program is always connected to their admirable networking opportunities, like the probable chance of sitting next to the son of a CEO of a fortune 500 company in class. Is this alone worth $26k a year--taking out student loans? Everyone advises that I go to USC because I'm a business major and the connections there are illustrious. However, there are some cons that alarm me. I'm uneasy knowing that safety is questionable outside the campus, there is a lack of reputation for a USC degree outside of California, and the overall cost to attend is twice as much as UCLA's. Does having a business administration degree from Marshall give me a significant advantage looking for jobs in California?

I know this choice should be made on what I want to do as a career, but I am unsure on what I want to do after my undergraduate studies. I know I want to start working after but doing what beats me. I like accounting because it allows me to dissect business decisions and advise. I like finance because I'm infatuated with numbers and investing. Moreover, I love interacting with people, but I am oblivious to the possible jobs that fit my nature. I have researched possible job opportunities with a degree in Business Administration and Economics, but because of my ignorance in their job responsibilities and their quality of employment, I just figured I would enjoy a consulting or advisory position compared to an analytical position that works in a cubical. What kind of occupations can I pursue with an economics or business degree that will match my personality and have reasonable pay and working hours?

Thank you in advance.

Edit: Is the networking at USC priceless?
I don't know how to feel about pursuing an MBA. What should I consider in my decision to go to graduate school?

Edit 2: I don't plan to stay at either university for more than two years.
New User Question Deals
Good equity in primary home, underwater in secondary home
Added on : Thursday May 15th 2014 11:00:05 AM
g: 0 Posted By: al6879
Views: 78 Replies: 1 I have a primary home with equity and a rental that is underwater. I am wondering if there are any moves I can make to improve my situation. I'm wondering about options like get the primary home appraised to cancel PMI, get a home equity loan on the primary to pay down the rental so I can cancel PMI on that one or sell it, or some other completely unrelated option.Details below, values come from Zillow.

I do not actually want to keep this rental. I used to live in the house but had to move. I am upside down because I bought it in 2005. The tenants are interested in buying and I may be able to do that once I get some equity in it. Asked the bank about a short sale, but was denied.


value: $128,000
balance: $145,838
remaining years on mortgage: 17
payment: $1,543
PMI payment: $95
PMI cancellation date: 2020
interest: 5.375%
rental price: $1000


value: $319,000
balance: $234,300
remaining years on mortgage: 28
payment: $1,870
PMI payment: $225
PMI cancellation date: ??
interest: 4.375%

Real Estate Deals
SBA Loan Default and Settlement Offer
Added on : Tuesday May 13th 2014 07:00:14 PM
g: 0 Posted By: HelpAll
Views: 43 Replies: 0 Purchased a small business with $150K SBA bank loan.
Business was closed in 2 years due to client loss with principle balance of $130K
Bank took default judgement and agreed to forgo remaining interest and attorney fees if principle balance is paid in full.
Submitted OIC for principle balance.
Received below e-mail from bank

"Bank (and the SBA) have agreed to settle the above matter for $130K provided said moneys are paid within 15 days.Your check(s) must be made payable to Attorney Trust Account. Once the check(s) clear, I will discharge the liens on the property and file a Warrant To Satisfy the Judgment."

For credit report: Can bank report loan as principle paid in full?
Would appreciate guidance on what best can be done to protect credit history, any expert tips or suggestions from those who have been through similar circumstances.

New User Question Deals
Which mortgage rate to pick based on lender cost vs credits
Added on : Tuesday May 13th 2014 06:00:09 AM
g: 0 Posted By: mortgageornot
Views: 30 Replies: 1 Sorry if there is another thread that details this decision, if so please link.

Purchasing a $470k property
with 20% down ($94k)
So $376k loan amount

Lender has offered the following rates and lender fee or credit for a 15-year fixed mortgage:
3.125%, we pay $1,000 in lender fees
3.25%, we receive a $300 credit towards other closing costs
3.375%, we receive a $2500 credit towards other closing costs

at 3.125% the total interest of the life of the loan is $95,465
at 3.25% the total interest over the life of the loan is $99,566 ($4,101 more than at 3.125%, but including the $1,300 net difference in lender costs it's $2,801.02)
at 3.375% the total interest over the life of the loan is $103,689 (or $8,223 more than at 3.125%, but including the $3,500 net difference in lender costs it's $4,723)

Plan on staying in this home for 10 years or more hopefully...
What's the best rate to go with?
Personal Finance Deals
Mortgage Bridge Loans
Added on : Tuesday May 13th 2014 04:00:11 AM
g: 0 Posted By: raymondanthony
Views: 97 Replies: 2 So there is a local talk radio I listen to and every week they have a guy on name Jordan Goodman. He is always pushing these Mortgage Bridge loans. Basically you loan small companies money thru a broker and get 6% a year back.They are supposed to be super safe. Here is the info I received:

Ray--So glad to help you out here! Since we cant speak during the day, I will give you a bit more background on the mortgage bridge loans. If you would like to discuss it further I would be glad to speak to you from home if you want to call me at 914-347-2463.
The Mortgage Bridge loans that I mentioned are super-safe and yield 6% and you get your money back in 9 to 12 months. Meanwhile they pay out a monthly income which you can take or reinvest. There is no maximum amount you can invest and you can invest as many times as youd like. The minimum investment is $25,000. All of the money you invest earns 6% interest since there are no commissions or fees subtracted from your capital. The sponsor of this investment earns a small spread on top of the 6% which is how they cover their expenses and earn a profit.
There are several reasons why the mortgage bridge loans are so safe:
1.The company putting these deals together does extensive financial underwriting of the commercial real estate borrower to make absolutely sure they are in great financial position to be able to repay the loan interest and principal as agreed. In many cases, they have dealt with the same borrowers for many years and have a long track record with them.
2.You as the lender are placed in first position on the mortgage note so you have priority over any other creditors and are fully secured.
3.The commercial property is appraised conservatively by an independent appraiser.
4.The maximum the borrower is allowed to borrow is 30%- 55% of the propertys value (example 50% loan-to-value ratio (LTV)) so there is plenty of equity to fall back on in the super- unlikely case that the property had to be foreclosed on. If the loan exceeds the 12 month mark, your interest rate will double in the 13th - 15th month to 12%.
5.The company putting the deal together guarantees in writing that it will make all payments of interest and principal to you, the lender, in case the underlying borrower does not make any interest or principal payments when due. There is also a reserve fund already set aside with millions of dollars to make those payments even though it has never been used.
6.The mortgage bridge loan does not trade,and therefore your principal is always safe and you get your principal back in 9-12 months. In contrast, you may earn a 6% yield from a stock, bond or mutual fund, but that security can drop in value far more than 6% quickly, wiping out the net impact of the yield you receive. Your stock, bond or mutual fund may never recover so your principal is not secure.
If you have an IRA or Roth IRA or SEP IRA or any other tax qualified plan you can roll it over to a self directed IRA at Provident Trust which is set up to handle mortgage bridge loans and use the money to invest in the Mortgage Bridge program.
The people I trust to send my listeners to are Ted Leutz and Lynette Robbins, Founders at The Knowles System, LLC, a complete financial strategy company. They are both in their 60s and have been doing this for many years. Ive sent my listeners to Ted and Lynette over the past several years and have had only wonderful feedback for their safe programs and strategies. Their phone number is 888-518-3113 X 2. Commercial Properties are limited to availability so I suggest you call The Knowles Team ASAP for more information and availability.
Knowles Systems, LLC may also ask you to sign a Non Disclosure Agreement (NDA) which assures you that any data you give them will be held in complete confidence and privacy, and it also assures them that if they put in huge amount of time, effort and expertise to come up with a plan that you like, that you will implement it through them.

Does anyone have any input on this?
General Economics Deals
Looking for a whole bunch of advice on saving towards a home
Added on : Thursday May 08th 2014 06:00:06 PM
g: 0 Posted By: SyZpuzzler
Views: 84 Replies: 3 Hello,

Here is my entire backstory since I feel it is at least partially necessary to understand the situation:

29 years 5 months, currently working at Allstate making 39k a year in CA. UCLA degree in stats. Didn't finish until I was 26, long story. Current financial situation is:

Renting for $600 a month
12k student loans to one company, 17k to another. Total 29k, anywhere from 2.1% to 5.8%. $130 min payment for first, $210 for second
8.5k lien to Toyota for my 11 Yaris with 55k miles, should last a good while. 1.9% interest. $190 min payment
3.3k balance on a 4.8k limit with something absurd like 15% interest. $72 minimum payment
Car insurance + phone = $180 a month
Gas = roughly $75 a month
Food = varies

Other than that, I don't have many expenses. I go out with my girlfriend of 11 months, sometimes we eat out, or go into San Francisco (I'm currently in Pleasanton), go shopping, buy jigsaw puzzles, etc

Doing the math on the salary, after taxes and health insurance I pocket around $1200 every 2 weeks = $31.2k net a year

My plan, up through last week, was to pay off that 40k debt ASAP and then save for a house, with the aim of only ever purchasing one house in an area I really wanted. At that point I would be married, still single, whatever

At work we had a financial planner come, and he looked over everything and told me I was wrong.

Being good at math and logical thinking, he explained it to me this way:

Instead of paying off your 40k debt asap, you can make minimum payments and open up a savings account with the sole purpose of putting away money each paycheck for real estate. This money is not a 'savings account', it's just named that. This is not my money. I can't go take out 6k in a year when my car dies and I need it. This is another debt, and we can think of it as 'Jeff's future home purchase'.

This is where a part local to me comes in: Livermore, CA supposedly has a buyer program where you only need 3% down. 300k average condo prices, that's 9k. 200 a paycheck for 2 years is about 10k. I would then purchase a condo, mortgage the rest, and continue to do that while paying my minimum debt payments for a few years while the value hopefully goes up. Being that Livermore is a good, growing town in the Bay Area, the odds of this are strong. I would then sell, take the extra money and use it as a down payment on a bigger property, and continue this until I eventually have an actual 2k square foot, 3-4 bedroom house.

He said 'this is how you get wealthy and provide for your family. You can't not take any risks or else you won't own anything until you're 40'

My questions are this:

Supposedly, you can't get a mortgage for more than 34-40% of your total income after debts. The mortgage on that property would be something like $1800, which means I would need a salary of $60k. I can see a few raises within a few years which would put me between $45 and $50, but not $60.

Also, if this program is cancelled or changes, I can't afford it and interest on my other debts are accruing

I always thought you wanted 20% down to avoid PMI, but he says you don't. You need to get in a property you own immediately and start building equity.

My credit is fairly good, I don't know the actual # but I'm pretty sure I will be at least 730, which I understand is the cutoff for the best loans.

If I were to open a savings account for this reason, where should I go and why?

Is this guy right? I just don't see how I'm supposed to be able to afford an $1800 + mortgage, $500 + in other debts, and other expenses when my current monthly take home is ~ $2,500. And even if I got to a point where that was say $3,000, and my debts + mortage would be $2,300, I COULD live off $700, easily. But a bank wouldn't give me a loan because my debt to income isn't high enough

He's worked at this company for 20 years, he's well-trusted, Allstate is a big company and wouldn't have somebody giving this kind of advice if it weren't true or beneficial

I just don't see how it can work


Investing Deals
Waiving mortgage contingency and inspection
Added on : Wednesday May 07th 2014 12:00:08 PM
g: 0 Posted By: jroff1
Views: 150 Replies: 10 Wife and I recently placed a bid on a house in our neighborhood. It's a very hot neighborhood in the Boston area, and there is clearly more demand than supply, so most places are selling within a day or two, usually above asking price. We bid on a place where we were told there were 5 bidders. We bid significantly over asking. Found out yesterday that we had the highest bid, but the seller opted to go with another bidder because they had waived the mortgage contingency and had waived their right to negotiate after the inspection for any issues less than $20,000.

Curious to get the FWF crowd's perspective on these tactics in a hot RE market. With regards to the mortgage - I have pre-approval from a mortgage broker for significantly more than what we bid. (Also planning to put down at least 20%). Am I being overly cautious to keep the mortgage contingency in future offers? My understanding is that there are three types of risk in waiving the mortgage contingency:

1. If we for some reason can't get a loan, we lose our deposit which is a sizeable amount of money.
2. If the appraisal comes in below the offer price, we may be stuck making up the difference.
3. If we can't get a good rate, we are stuck paying a higher interest rate

All of these reasons (especially the first) make me wary of waiving the mortgage contingency. I also am wary of waiving the inspection contingency, as most of the houses in our neighborhood are over 100 years old, so there are lots of potentially hidden issues.

At the same time, don't want to always be non-competitive with an offer.

Any ideas on how to be competitive while also protecting myself?
Save my capital or pour it on the student loans?
Added on : Tuesday May 06th 2014 04:00:12 PM
g: 1 Posted By: jdude
Views: 113 Replies: 2 jdude back here. Four years ago I pondered how to approach my $285,000 student loans upon graduation.http://www.fullofdeals.com/forums/finance/996270/

Fast forward to today. At age 31 I've made it through a very painful tax season learning the importance of saving investment money within a corporation rather than personally. I'd been saving to find some investments to help pay down the loans for me. Turns out the real estate market where I live is somewhat overpriced and those opportunities haven't materialized. After paying a massive chunk to taxes I'm feeling demoralized on the saving money thing and looking to start aggressively paying down the student loans. For the first couple years out of school my work situation was pretty unstable and I wasn't able to do more than pay the interest on the loans. In the last year I've managed to begin making headway and as of today I still owe $240,374. I'm thinking of dropping my remaining $50k on this then upping my monthly payments to $5,000. This will not leave me much of anything to put towards retirement and I'll continue my FWF existence like a pauper. However I'm just having a hard time finding a stable investment that can beat the 6.3% tax free return of paying down my worst marginal loans.

I expect to earn about $136k and pay about $47k in taxes this year. I have between $5,000-10,000 in annual professional expenses so if I start paying $60k to the loan I'll be living pretty lean for a while.

My alternatives include buying real estate outside my immediate area, funding a tax-deferred retirement account, capitalizing a personal investment corporation and/or acting as a seed investor in a small start-up I've got my eye on.

So what do you say? Go super conservative and pay this sucker down or stick to the original plan and try to get some investment income going?
Personal Finance Deals
Daughter graduated, now how can I help her long term?
Added on : Monday May 05th 2014 05:00:13 AM
g: 1 Posted By: jesrf
Views: 204 Replies: 9 On Saturday my daughter graduated from college. For the last ten years I have been saving $125 a month to help pay her way. I ended up paying for half, she took loans for the other half. She has about $30k in debt. I wanted her to have some "skin in the game" so she valued it more, & I believe she has.

I still want to help her, my question is how is the best way? I could help with her loans, but I think that's dumb. I considered investing a portion of the $125 in an ira or Roth (maybe 50-75 a month) and putting the rest in a joint account. Just till she's established and making her own way comfortably.

Im really at a loss how best to help her long term, I know some will say I should just keep the money, get a new crown Vic, spend it on H & B, but, I think I want to give her the help I never had. Any suggestions greatly appreciated....

Personal Finance Deals
Cash gift from overseas to pay for house?
Added on : Saturday May 03rd 2014 03:00:04 PM
g: -1 Posted By: pocketwallet
Views: 198 Replies: 3 My wife and I are looking for a house to buy.

Our oversea family members from both my wife's and my side want to help with cash gifts (we are very grateful!).
I prefer not to have report this on our tax returns. What's our best way / limit to minimize our tax liability?

Method 1:
For the purpose of the calculation let's assume the purchase price would be $700,000
According to this IRS document (http://www.irs.gov/Businesses/Gifts-from-Foreign-Person),cash gifts from related foreign persons totaling less than $100,000 do not need to be reported on Form 3520. I am wondering if the threshold is PER GIFTEE PER YEAR PER RELATED GIFTER. Does the following scenario work if my wife and I file joint tax returns? (Do my wife's parents and my parents not count as related as assumed below?)

Year 1: Husband's overseas family give husband $90,000 + Husband's overseas family give wife $90,000 + Wife's overseas parents give husband $90,000 + Wife's overseas parents give wife $90,000 = $360,000
Year 2: same as year 1 = $360,000

(note I've read this thread, but that was for a single overseas parent to a single US-person.)

Method 2:
Another way I can think of is to set up a loan with our families with a small, reasonable rate (2-3%?). We can pay them back and claim the interest payment on our tax returns.

Thank you very much.

Personal Finance Deals
Paid off Grad School Loans, Now What?
Added on : Saturday May 03rd 2014 12:00:06 PM
g: 0 Posted By: madcowdisease
Views: 150 Replies: 2 Long story short, I was able to say bye-bye to my student debt earlier this month. My monthly payment was a bit short of $500. In the short term that will go into building my emergency fund, but my question is what I can do with the cash going forward.

A few things:
-Only other debt is ~$13 K auto @ 1.49% (thanks for tipping me off to this rate, FWF!) - contemplating paying this off, but the interest rate being so low...
-I max out my 401(K) and Roth contributions annually.
-No HDHP insurance, so no HSA
-No children, so 529 doesn't seem appropriate
-No house, I am planning on leaving current city in < 1 yr
Personal Finance Deals
g: 0 Posted By: gifpaste
Views: 28 Replies: 0 Obviously an in-person broker is nice to have for some people to go in and sit down and talk face to face, but for FWF members who only care about maximizing savings... Is it possible for them to beat/compete with internet lenders on rates like Roundpoint, Sebonic, or Aimloan (I've heard mixed reviews on aimloan..)

I used a broker for my first home purchase many years ago, then through FWF I read about Penfed's high praise and great rates. I've been watching Penfed/Roundpoint/Sebonic the last few weeks and Sebonic/Roundpoint appear to always be lower

Waiting to hear back from Roundpoint but with Sebonic you lock in the rate posted on their website. I didnt have to pay any application fee and already got my pre-approval letter.
Question Deals
Another which student loan to pay off first thread
Added on : Friday May 02nd 2014 04:00:07 PM
g: 0 Posted By: rifleman940
Views: 70 Replies: 0 I have 2 student loans remaining that I am hitting hard. I'm putting every extra cent towards paying them off as soon as possible. My gut tells me to pay off the lower balance subsidized loan first and snowball the payment into the higher balance loan, but I want to check to make sure I'm not overlooking anything.

Direct Sub Stafford Loan

Original Balance: $5,500.00
Current Balance: $3,861.40
Interest Rate: 5.35% fixed (subsidized)
Monthly Payment: $61.77

Direct Unsub Stafford Loan

Original Balance: $7,000.00
Current Balance: $5,481.77
Interest Rate: 6.55% fixed (unsubsidized)
Monthly Payment: $89.62

Question Deals
AMEX Platinum 100,000 point offer
Added on : Friday May 02nd 2014 03:00:05 PM
g: 0 Posted By: zorbachs
Views: 14 Replies: 0 Hi all,

I recently received this offer in the mail about a week ago and was considering it, but I had a few questions.

First, I am 25 years old and about to graduate law school. I am taking the bar in July and will start working full time shortly thereafter. My parents have been AMEX cardholders since 1983 and have not missed a payment and I was added as an authorized user to their accounts in 2005 before getting my first blue card in 2006. In 2010, I opened my own blue cash card and this year, I got a PR Gold card. I have never missed a payment, though I have no idea what my credit score is. I've never been denied for any AMEX cards; I am not sure if it is due to my parents history or what because I have never received a loan or anything else to really build a credit history.

As for traveling, I really don't travel much. I tend to go to NYC twice a year to visit friends and plan to visit Jamaica in January. I am not sure if traveling will be part of my job as an attorney, that remains to be seen.

With all of that said, is it a waste of money to take advantage of this offer? I read that 100,000 points has a value of at least $1000 in gift cards and the like, so if anything, I suppose I could pay the $450 fee and cash in the rewards for gift cards for a $550 profit, and if I end up not traveling after work, canceling the card next year. Or maybe it isn't worth the hassle. I could spend $1000/month by running all my bills through the card.

Advice? My gut says I probably wouldn't take advantage of it as I should and I should just wait until I start working and maybe AMEX will send this offer to me again sometime in the future. I don't know how rare it is.
New User Question Deals
Added on : Thursday May 01st 2014 07:00:08 AM
g: 0 Posted By: faltutp
Views: 120 Replies: 0 I have done search in Fatwallet. and have read few main threads from beginning to end ( link 1,link 2)I am better educated now after reading those but still more confused.

I am in State of WA. Jumbo Home loansingle family 20+ old home (nor Refi) for 650K with Wells as lender. I am getting quoted the following price for 1103 TITLE INS-OWNERS COVERAGE 1982.201102 CLOSING/ESCROW/SETTLEMENT 850.00
I have requested lender list of endorsements needed for lender insurance but they have asked me to contact Title Company. Can GEO or others help me.

I need to understand how to ask the right questions to bring this cost down and if this is a higher price. Also do i need to waive Owners coverage? I understand the need but most of the discussion i saw was around some foreclosed property. Can you please suggest?
Real Estate Deals
Auto Loan Refinance - 1.24% or 1.74% Incredible Rates DCU.org
Added on : Wednesday April 30th 2014 05:00:05 AM
g: 0 Posted By: Ignatzs
Views: 124 Replies: 0 Wanted to share a HOT automobile refinance deal with my fellow FW community. Digital Credit Union Automobile Loanshas automobile refinance rates at 1.24% with direct deposit to credit union account (or 1.74% without) for 60 month automobile loan refinance. Main page showing refi special banner Digital Credit Union DCU loan banner Your experience may vary for your rate, but it's very worth checking out. Within a period of 24 hours, I was approved and had refinanced my loan online. My credit is 'good' in the mid to upper 600's..not excellent or superior. You will need to join the credit unionand open an account. They open up at 8AM EST, which I wasn't aware of, so surprised to get a call at 9 AM to finalize. I'm not a lender or an actor who plays one on TV, so please don't ask me about all the nitty gritty and just see their website with the link.
Very easy process to do it too. Overall, either email or upload your current paystub, provide your info basics (name, address, employer, monthly income, current car loan info/vehicle info), and that's mainly it. SO impressed that I had to share my experience. I shopped around for similar automobile refi loans and no other rates compared to this unless you had excellent credit, so again, I'm very impressed with them and highly recommend.
These are the type of businesses to support, and DCU is like the Chik-Fil-A or Discount Tire (both businesses are consistent in their quality service no matter where you visit) of financial institutions in my opinion...they know customers are what make the business, and they delivered an excellent product and amazing customer service. Kudos to Carol B in the loan department.
Deal Deals
Auto Loan Trouble
Added on : Monday April 28th 2014 07:00:12 AM
g: 0 Posted By: whyhello
Views: 163 Replies: 3 Started July-2013 - July 2018
13k Car
Interest Rate 15%
12k Balance Amount
$350/monthly payment - 60/months
Car Insurance - $220

^^^^These are rough estimates -

She is expecting a baby in November and plans to work after a couple of months after the baby is born. Providing childcare and this car payment/insurance, she will not have enough money. She has an uncle who is giving her an old civic which she can use for transportation, but wants to get out of this auto loan. Any suggestions?

Personal Finance Deals
Software for RE Investor
Added on : Monday April 28th 2014 12:00:04 AM
g: 0 Posted By: Fraz2002
Views: 46 Replies: 0 I was wondering if anyone had some advice on good software for real estate investors.

I currently participate as a GP, LP, and have several entities and loan structures that I need to keep track of. In addition to this I would like to store all investment constants (land cost, closing costs, etc) and variables (rent, taxes etc.)

Currently I use excel; should I stay there?

Note: It would be a bonus if this software could also tie into traditional investment accounts.

Real Estate Deals
Pledged Asset Loan, Margin financing, mortgage
Added on : Sunday April 27th 2014 12:00:07 PM
g: 0 Posted By: ronb1
Views: 28 Replies: 0 I've seen some older threads on some of these issues but figured it was worth checking out what people's latest thinking might be for some of this.

Basic scenario is I'm considering either a major home renovation (i.e. teardown and rebuild) or a new purchase. For the sake of simplicity, let's just say that either scenario will cost me $1million.

I'm considering some alternatives to traditional mortgage for a few reasons:

1) Ihave a short sale on my credit history, which makes current mortgages harder to acquire and the rates higher.
2)I've got several million in securities that I can leverage if it makes sense.
3) Many of those securities would be subject to significant capital gains if I were to sell them, so I'd rather leverage the money instead of pay cash and take the tax hit.

Given these parameters, I'm considering a couple of options - Either a Pledged Asset Loan from Schwab, or else just borrowing on margin against my securities. Pledged Asset Loan (PAL) from schwab has a reasonably attractive rate for a $1M loan - 2.4% - but if I'm looking at just borrowing on margin against my securities at interactivebrokers.com (assuming I transfer assets over there) it would be at an even more enticing rate of 1.15% (https://www.interactivebrokers.com/en/index.php?f=interest&p=sch...

I'm aware that major market downturn could force a margin call but unless it's incredibly drastic I can probably cover it. PAL rates are tied to LIBOR so they could go up over time but it's reasonable to assume that I could refinance to a more traditional loan if I needed to, particularly once my credit score improves in another year or two.

Anybody have thoughts about which of the two scenarios make more sense? Or if I'm totally smokin' crack about doing this sort of stuff?

New User Question Deals
Navy federal home equity loan
Added on : Friday April 25th 2014 03:00:07 PM
g: 0 Posted By: nhan1195
Views: 117 Replies: 1 Hi all,

I am doing a home equity loan with Navy federal and I have a few questions I need your help with.

Quick background: bought the house 14 months ago as REO, now appraised at 74% LTV. I have about $25k credit card debts that I want to consolidate with this loan. The APR on those cards range from 7.9% to 19.99%. The equity loan rate is 6.84% for 15 years. I know you can do a bit better some where else but this one we were ok with as they allow us to borrow up to 90% LTV. Received the HUD today, appointment to sign on Monday. Only issue I see is that they want to pay off the credit cards for me, which is fine but the form request to close all the accounts as well. I know what they try to do is to close them down so I don't run them up again, but considering I've been OK handling my money (the money was mainly expenses during college for my and my wife, not the crazy spending ones). My plan is to pay double the $225 monthly that they say until it's done so it will be done in couple years and looks to be better than my regular routine of paying credit card company.

So, I don't think the bank has the authority/right to tell you to close all your accounts, do they(as a condition to offer the loan)? These credit cards, most of them I had for about 10 years with no late payment. Having to close them down doesn't prevent me from opening new ones, but would that negatively affects my credit history? I plan to call them early on Monday to discuss about this.

Looking forwards to what your thoughts are on this case on what I should tell them. Thank you in advance for your inputs.

Question Deals
Question regarding residual cash on Penfed auto loan
Added on : Thursday April 24th 2014 11:00:14 AM
g: 0 Posted By: joeH1974
Views: 7 Replies: 0 The wife and I are shopping for a new vehicle. Applied with Penfed and was approved for $40k. The draft was sent out yesterday. We have a trade-in worth $8-9k. If we buy a car at $35k, and trade in the old vehicle to the dealership for a net cost of ~27k, is it possible to make the draft out to the dealership for $5k more and have the dealership cut us a refund check for that same amount? Essentially is it possible to get $5k of personal loan funds at the 1.99% interest rate?

I guess the more difficult way would be to finance 100% of the new vehicle cost with the draft, and complete a personal sale of the old vehicle. I've never enjoyed the hassle of trying to sell vehicles personally though.

Apologies if this has been answered before, I've seen many Penfed threads regarding obtaining residual cash from refinancing a existing Penfed loan or used vehicle, but not one regarding a new vehicle purchase.
Question Deals
buying points ... how paying early will effect ?
Added on : Wednesday April 23rd 2014 08:00:07 PM
g: 0 Posted By: faltutp
Views: 0 Replies: 0 Home loan 3.75 {fixed 30 years} with {buying} 1.125 points. Break even period for me is 52 weeks. Question. How will paying extra every payment or paying the loan early {accelerated payments or yearly push to principle} effect my break even or overall situation... Good or bad idea?

Pay Tuition with Credit Card for Point & Minimum Spend
Added on : Tuesday April 22nd 2014 05:00:06 PM
g: 0 Posted By: gaf2255
Views: 20 Replies: 0 I am taking classes in the Summer semester and have accepted student loans. From what I have been reading it states that the funds will be disbursed directly to the university and and overage will be paid to the student via check. What I would like to do is use my credit card to pay my tuition to get the points, and also hit minimum spend requirements, then take the loan funds and pay off the credit cards. Does anybody have experience with this? I was thinking about paying the university directly with my credit card prior to the loan getting disbursed and then waiting for a check from them returning the full amount since it has already been paid.
New User Question Deals
Need living expenses without withdrawing from 401k. Advice?
Added on : Monday April 21st 2014 02:00:07 PM
g: 0 Posted By: casual34
Views: 141 Replies: 5 I'm in between jobs and want to have $8-10K to cover living expenses as I deal with car issues and look for my next job. My emergency fund is running dangerously low and I have $80k in a 401K. Obviously I don't want to withdraw from that account as I'll probably only get 50 cents on the dollar after taxes and penalties. What are my options at this point? Should I open a 0% APR credit card, transfer my balance there and put everything on that for the next few months? If so, what features should I be looking for? I've only had a few credit cards in my life and have always just paid them off in full so I'm pretty inexperienced. I could ask parents or friends for a loan but I really don't want to do that because I've always been self-sufficient and would rather not involve others, plus the humiliation factor. I'm embarrassingly ignorant about personal finance (probably why I'm in this position to begin with), so any advice or comments would be really appreciated.
New User Question Deals
g: 0 Posted By: st4rdust
Views: 162 Replies: 0 Best Buy has a Nokia Lumia 520 GoPhone Windows 8 Smartphone(No-Contract AT&T) for $49.99 with free shipping.4.5/5 stars based on 106 customer reviews.

Windows 8 OS
4-in. Touchscreen
5MP Camera

You pay for the minutes you use with no annual contract. Refill via Internet or prepay cards. These also work in lieu of "loaner phones" - I know people that have broken their AT&T phone before their upgrade, so they used a GoPhone with their old SIM card in the meantime.
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Best Buy Coupons
In my 20s, how diversified do you think I should be in my stocks?
Added on : Saturday April 19th 2014 06:00:05 PM
g: 0 Posted By: guy4167
Views: 0 Replies: 0 I have always been interested in the stock market and went to college for economics. I had a lot of student loan debt after graduation, which I have since paid off. I have gotten raises and a promotion since starting work and just recently started to have some true excess money to play around with. Since there's not a ton, I will just give you my entire stock history:

- Bought AMD at 5.41 (nov 2011), sold at $6.22 (feb 2012).
- Bought NVIDIA at $12 (Jan 2013), sold at $14.56 (Aug 2013) (dividend in the low 2%s)
- Bought DMND at $14.55 (Apr 2013), still hold it ($31.70)
- Bought CLI at $20.93 (Aug 2013) and $20.31 (Nov 2013). Currently at $20.28 (6% effective dividend).
- Bought CTL at $28.48 (Jan 2014), currently at $34.43 (7.5% effective dividend)
- Bought SODA at $50.52 (Dec 2013), $37.02 (Jan 2014), and $38.02 (April 2014). Currently at $39.99
- Bought VLY at $9.60 (Feb 2014), sold at $10.36 (Mar 2014)
- Bought WTW at $20.37 (Mar 2014), currently trading at $20.69 (3.6% dividend, currently suspended)
- Bought ADT at $29.21 (Mar 2014), currently trading at $30.22 (2.75% effective dividend)

Feel like I have done pretty well so far. Sodastream is the only loser out of the bunch, but I do think they have a good business and are ripe for a buy out.

Do you think I should try to diversify more? Its challenging to find stocks that are good values in today's market, but only being involved in 6 stocks is not ideal either. Obviously buying opportunities will eventually present themselves, but do you think I should make a conscious effort to diversify immediately?
Investment Advise
Added on : Saturday April 19th 2014 06:00:06 AM
g: 0 Posted By: nubie8791
Views: 36 Replies: 0 I have close to $175K just sitting in my bank account for the past couple of years, was too scared to put into Mutual funds or stocks.I have no auto or home loans and pay off my CCs every month in full. I have never needed to take a loan and have a 779 credit score from Experian.

I plan to break this up and invest 30% in mutual funds, 20% in stocks, 30% in CDs and 20% in cash.I plan to take a home loan after 1-2 years at which point I will need to liquidate all investments. Looking for advise if this plan sounds good and/or if there is any specific advise on mutual funds & stocks management accounts.

Question Deals
Help with budget
Added on : Friday April 18th 2014 10:00:08 AM
g: 0 Posted By: elektroshok
Views: 213 Replies: 2 Hello -

Once again, new to the forums but am already getting great info from perusing.

I'll be starting residency in July (one year somewhere then 5 somewhere else) and really want to start off right with the budgeting and saving.

Student loans as follows:
160k unsub at 6.8
17k sub at 6.8
13k private at 7.9

I plan, during residency, to do income based repayment which puts my monthly loan payments (on the govt loans) at 350/mo going up to about 440/mo at the end of residency.

My plan for the first year is as follows:
3188/mo post tax
Per month:
-100 utilities
-700 rent
-460 roth
-500 (for jul-nov to get $2500 tax deduction on loans)
-500 for private loan

This will leave me (on average since I'm paying the 2500 in the first five months) ~$1200/mo for spending/saving/other.

Trying to be realistic and still be able to have fun, I think all in all I could probably spend 5-700 per month on food/fun. I had planned to just save the rest in a savings or no fee mutual fund or something.

For the next 4 years I'll be in a different city with higher rent (since I think I have been convinced to rent instead of buy by everyone here).
This program will have 403b starting right away, after 1 year they match 1:1 up to 6% and after four years there I would be vested 60% of their contributions.
Also, those four years there will be increased income beyond what I have budgeted below from moonlighting but it wont be consistent so I did not include it in the budget yet

My plan here is as follows (My income will go up around 3k per year for these four years - this is just the first year for this example):
3526/mo post tax
Per month:
-1000 rent
-100 utilities
-500 loans (IBR payment and difference directly to principal)
-460 roth
-465 401k (10%)
-~150 (in lieu of SS tax)

This leaves me with about 800 or so a month for spending/saving. My plan was to use what I could to finish paying of the private loan until that is gone.

As far as any extra money from moonlighting - my initial plan was to just dump all this into principal of the loan. Does that seem like a good idea?
I know there is the 10 year public loan forgiveness thing, for which I'm going to do the paperwork every year for but my plan is to not work at a public institution after I'm finished which is why I'm going to try to pay a little more each month to principal beyond the IBR payments I need to make.

Any thoughts/changes/comments are much appreciated as I really want to start off on the right foot and not be even more behind than I am now with regards to savings and retirement.


Personal Finance Deals
unsolicited check/loan - can i just change the terms on the back?
Added on : Friday April 18th 2014 08:00:08 AM
g: 0 Posted By: Ma171aC
Views: 124 Replies: 2 Strictly curious here, I don't need this, want it, etc.. But whats stopping someone from just changing the terms on the back of this check and cashing/depositing into some random temp account, etc.. What if someone grabbed my mail or it got delivered to the wrong place and someone cashed it somehow.


Also I'm stuck at home and bored, soo sorry if this is a stupid post.

Discussion Deals
Navy FCU $50 for New Members
Added on : Friday April 18th 2014 07:00:11 AM
g: 1 Posted By: misterspaghetti
Views: 158 Replies: 0 Looks like Navy FCU is offering $50 for new members through referral from existing members. They have some fairly stringent requirements, but if you qualify, NFCU has some of the best rates on home and car loans. Definitely worth considering.

Personal Finance Deals
Real Estate Financial Advice Needed
Added on : Wednesday April 16th 2014 06:00:06 PM
g: 0 Posted By: Komrade
Views: 175 Replies: 0 Three is a property next to my vacation property for sale that has a current income of $1000/mo.
There is a store and garage that have a potential income of $1000 in rent (trailer park)... although the potential of the garage is less clear to me (it's not easily visible from the road).
So even w/o the garage the yield of the property would be ~9% ((1000+500(store)x12)/200K.. We think it has potential (it's along the river, and used to be a campground, plus the wife would actually run the store)
I own my vacation property and it's worth 250K
I rent my primary residence.
I own a piece of land next to my primary residence that is worth 125K or so (planned to built primary residence on it)
The owners want about 200K for the property.
My credit currently is not that great (40k in CC debt, 20K in car loans, 10K in RV (going away), credit cards are all 0%.. creditkarma estimates my rating around 700
My bank account has 10K, and I have another 15K in stocks.
My discretionary income is 4K/mo.
If we buy the property, my discretionary income goes up to 6k/mo (move out of rental).
The credit card debt is some vacation built related (thought I'd built for cash, but ended up using 0% credit cards towards the end.. so it is temporary)

Do I
a) put a 10% down payment from funds I have (I have some other hard assets for real emergencies, but I do not favor this option).. would I even be able to buy it with 10% down these days?
b) take out a loan from 401K (not sure if they'd let me for a property like this, also not too much there, but enough to fill the gap for a 20% down payment)
c) mortgage my vacation property (15 year lower rate?)
d) get a home equity line (should pay it off as soon as I sell the land, due to credit risk)?
e) sell my current property

I personally think (e) is my best option, but I am not sure it could be sold as quickly as I need.
100K from it could be used as down payment, wipe out my CC dept, and leave some money to invest into the property (wife would run the store the first year or two)

What would you do to minimize bank fees and interest rates?

Also, the property is not on the market. How do I find a good property inspector (w/o necessarily using bank's)

Real Estate Deals
Best Strategy to pay future wife's student loan debt
Added on : Wednesday April 16th 2014 03:00:06 PM
g: 0 Posted By: sullim4
Views: 63 Replies: 1 Basic situation:

Age 29
2013 AGI: $165k (software engineer)
Only debt is a 15 yr fixed mortgage @ 2.875%, 231k remaining balance, 14 yrs left
$40k in company stock, dividends are roughly 3% per year
$65k in liquid savings
$162k in 401(k) (78% or so is Roth)

Age 27
2013 AGI: $58k (civil engineer)
Student Loan Debt: $6k private loan @ 6.5%; $22k consolidated sub Stafford @ 6.1%; $26kconsolidatedunsub Stafford @ 6.1%; $12k Perkins @ 2.8%; $3k Perkins @ 2.5%; $7k parent PLUS loan that dad is responsible for, but she's paying on @ 5%. She is on IBR right now.
$10k in liquid savings
No other debt
$10k in 401(k) (0% is Roth)

We are getting married at the end of May. We will be combining finances at that time; due to mutual religious beliefs we currently live separately. Her parents didn't help her out at all with her education and so she's saddled with a ton of student loan debt. I want to figure out the best way to pay down this debt and I have a few ideas that I'm throwing around, and would like advice on what the best strategy might be. When we marry, obviously the student loan deduction goes out the window (she's currently taking the full $2500 per year). We plan on lopping $10k off of the loans via her liquid savings once we get married.

Option 1:
Live off my salary, and use her salary to exclusively pay off the loans in order of highest to lowestinterest rate. This would amount to payments around $3200 per month, and by my calculations, would pay off the loans in a little over 2 years. The con to this one is that I'd like to max out her 401(k), her company match is 15% of all contribution... andfollowing thisoptionwould take a big chunk out of what we could put towards loans.

Option 2:
Combination of selling stock and taking money out of savings, pay off loans now, and simply pay my savings back over a 2-3 year period. This puts our liquid cash fairly low and I'd rather hold onto the money, but that is hard to justify given the paltry interest rates I'm earning and what the loans cost to hold.

Option 3:
Take out a loan against my 401(k) to pay off her loans, and then pay it back with interest, probably throwing more than the minimum at it. I think the market is headed down this year, so I might be sheltering my money against a correction by doing this. I feel secure in my job, so I don't think it is likely that I will need to pay the balance immediately in the case of a layoff.

Option 4:
Jump on some 0% APR bandwagons, balance transfer the student loans over to the cards, pay off remaining balances with stock/savings, and pay cards off by the time the 0% expires. The con here seems to be BT fees, though the Chase Slate seems like an appealing option here.

Any other thoughts?
Personal Finance Deals
g: 0 Posted By: tuphat
Views: 189 Replies: 2 "Rowan Williams, the former Archbishop of Canterbury, has challenged the assumption that borrowers always have a moral responsibility to pay back their loans.

Debt repayment is not a "moral absolute", he said, because banks and lenders have themselves failed to accept the moral responsibility for their lending.

Dr Williams said the global financial system has repeatedly ignored and sidelined in every possible way the principles on which much of the Western world's moral code is based."


FWIW, I think the padre is walking a very very fine line ...
General Economics Deals
g: 1 Posted By: remick
Views: 171 Replies: 0 http://www.amazon.com/gp/product/B0081KRP8Q

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Former mortgage brokers James L. Paris and Robert G. Yetman, Jr. detail exactly how credit scores are calculated and how a consumer can quickly raise their score. Check out our YouTube video which gives an overview of what is in the book -

The book is based on years of working with individual clients with credit situations as difficult as recent bankruptcies, foreclosures, and even IRS tax liens. Includes letters that can be used to dispute inaccurate information from a credit bureau report. Step by step information on what you need to do if you are currently attempting to get approved for a credit card, auto loan, or mortgage. Includes sources of no qualifying credit accounts that can be used to rebuild credit.

Why You Are Dead Broke! Make Money Your Best Friend and Get Out of Debt FOREVER!

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Getting into debt is the seems like the easiest thing to do today. Jeremy Jacobson's book is about preventing and getting out of debt forever. In this book you will learn and find out:
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Can you really find money every day? Yes! There are three ways.
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The first time I tried to manifest it I found money every day for 46 days in a row even though I only used the techniques for 30 days. Usually, I found dimes, quarters, ones, and twenties. However, on day 34, I found $213.34.
You can learn how to do this. In fact, if you your mind to these ideas, youll start finding money immediately.
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In this book, you learn some obvious things that you should know, some not very obvious things that you probably dont know, and some things that just arent obvious so you probably dont know them. Whew, thats a mouthful!
You are a sensible, reasonable person. You know money doesnt grow on trees. Its just made out of trees. You also know that money doesnt just appear out of nowhere. Or, does it? Let me tell you my story.
Totally Free Deals
g: 0 Posted By: jackstone
Views: 92 Replies: 0 I am not certain if I will get red for this question but to me it is a rather difficult one to assess. Would appreciate your help on this and am happy to provide additional relevant info.

Getting a severance package from my current job (for a lump sum) and already have another one lined up, so not worried about job security for the present. A nice problem to have admittedly.

Quick disclosure, I already have 3 rental properties but they each have loans on them. The business model is working and I have no major issues with property management.

Ultimate question - use severance package to pay off student loans in full and still have some severance package cash lying around, or use an FW strategy to maximize long term net worth and earning power to offset student loan cashflow by purchasing rental property in full?

The question the wife and I are debating: We have about 56K in student loans combined between us, with an average interest rate of about 4.75% - a few are above 6% so I could see some arguments to pay at least those ones off. The monthly cost for our student loans is about $750 which I agree is ridiculously large. I could use this severance to vanquish the loans and eliminate the albatross of student debt once and for all. I would still then have close to enough cash lying around to possibly pursue a rental property downpayment and have a 4th mortgaged property, or could just throw it into a global stock index fund.

But all else equal, I am rather confident that I could locate a property that if purchased with cash, would offset the student loan cash flow completely, because the rental properties I already have (with loans on them) rent for higher than that monthly loan outflow, even after adjusting for property management fees, maintenance, etc; of course I have to pay mortgage expenses on the current 3 properties, so this would only work if I could find a property that I could FULLY pay - understand that some FWs might tell me to triple down and get three more mortgage properties instead of a single cash one. I will seriously consider taking money out of the cash paid for house after the rent and monthly expense situation is steady (let's say a year in) and then use it to buy another house with cash. The depreciation offset will also help in a big way until the student loans are due to be paid off - currently a mix of expiry, with most ending in 2019. Obviously once the student loans are paid off my cashflow situation dramatically improves - so 5 years out or so except for 1 of the loans (about 1/3 of the outstanding debt but at 3.5%) expiring in 2029.

Other considerations:

We always max out our Roth IRAs - may start to become inelgibile for Roth within the next year or two.
I have maxed out my 401k for two straight years and should be able to for the forseeable future. Wife's story a bit different but hope to at least come close to maxing by 2015.
Have another partnership that owns one triplex in a different geographic area, that has been a bit more challenging than the 3 rental properties I currently have - point is I have somewhat high exposure to real estate, though spread across 3 geographies.
Have a (what I will call) middle sized liquid stock portfolio, as well as auto monthly DRIP with 4 companies.
We will be moving, and there are often start up costs associated with that, but my new job's compensation should cover the difference in cost of living.
We have an infant daughter, and we will definitely need to start planning for school soon!

Thank you very much!
Personal Finance Deals
Combined ARM and Fixed
Added on : Saturday April 12th 2014 08:00:06 PM
g: 0 Posted By: JDdoc
Views: 118 Replies: 0 Looking for some help / feedback / direction on whether a combination of a 30 year fixed, ARM mortgage is available from lenders.

If the loan amounts are relevant I'm looking at approximately 2.75M purchase price with 20-30% down.

My reason for asking might be relevant to many. I could probably pay off about 1M in the 3-5 year period so about 1M in the ARM would be nice to take advantage of about 2% rates for that. Even with rates coming up through 2016, I should be able to save about 50-100k by putting the 1M in an ARM

On the other hand, for the remainder (about 800-1.2M), keeping that in a fixed rate would give security in case the LIBOR comes up and the ARM rates become closer to the historic rates.

Does anyone know if any lenders out there would offer this kind of piggybacking?

Personal Finance Deals
g: 0 Posted By: Compeek
Views: 47 Replies: 0 I bought a used car from a dealer two weeks ago for $6,300 out the door. I paid $1,000 down and financed the rest.I am 22 and have good credit (Discover said 773 last month), but still limited credit history obviously, so they gave me a loan with a 10% interest rate. My payments are $150.70 for 42 months. The loanisthrough Wells Fargo Dealer Services.

Now, I already had two other cars worth around $3,000 each that I am currently selling. The new car replaces both of them, so all of the money I get from selling those two can go to pay off the new car. I should easily get the $5,300 back from selling them and would be able to pay off the loan.The only reason I financed the car in the first place was because I wouldn't have the cash to pay for the new car until I sold both of the current cars.

(I'm sure I could have gotten a better rate at my own bank, etc., but my intention was to pay off the loan in the first month or two anyway, so I didn't care that much, and doing it through the dealer was easiest.)

My question is: Once I sell the other two cars and have the $5,300 (plus any accrued interest), should I pay off the loan in full, or should I pay it mostly off, but keep a small balance on it so that the loan stays on my credit and [potentially] helps my score for a while?

This is my first auto loan, so I don't know all of the intricacies, but I assume if I pay off all of the principal except, say, $100, I can just make very small payments for a while, and the loan will stay on my credit and bring my overall utilization down. Correct me if I'm wrong on that, though. And even if I'm right, maybe it's not worth the hassle, and I should just pay it off and be done with it.

Any input is appreciated!
Question Deals
Should I care about TransUnion? Too few accounts?
Added on : Friday April 11th 2014 06:00:07 PM
g: 0 Posted By: doublePie
Views: 91 Replies: 0 Last year, my husband and I refinanced our home from a 30 fixed 6.25% FHA to 15 fixed 3.25% conventional. The monthly payment only increased about $50 and $23 of that is PMI will drop off in August (I've confirmed). At that time, both of us had a credit score with each of the big three within 20 points either way of 800.

A year later, my husband applied for a Sallie Mae Mastercard and the score they used to issue it was 732 from TransUnion.


Number of accounts with delinquency
Proportion of loan balances to loan amounts too high
Too few accounts currently paid as agreed
Proportion of balances to credit limits too high on revolving accts

Gross income was $71,000 last year, which has been steadily rising for the past 7 years. Net take home is $4050 (after 401K, health insurance, HSA, United Way).
The mortgage was $103,000 on a $123,000 property.
Card 1: CreditFirst (Firestone): We have it for the discounts and promotions. Paid off every month with the exception of one month in 2011 when we forgot about it and it went 30 days over. D'OH.
Card 2: Brand new Sallie Mae card with a $12,500 limit.
Card 3: Very vanilla VISA through our credit union. $13,500. Paid off every month, no exceptions. Averages about $1500/month. It is used for pretty much everything -- gas, groceries, cellphone bill, internet, home improvement stuff, restaurants. According to TransUnion, it had a high water mark of just over $7000 at one point in 2011, but even then I believe it was paid off the same month from savings.
New car loan of $16,300. The first payment is due at the end of this month. $4000 down payment. 2.6% for 60 months (2013 model didn't qualify for promotional rates)
Mortgage is $872 total with principle, escrow, and interest. If you haven't gathered from the fact that it's a $123K house... we have no HOA fees.

(EDIT: I should add that my own credit union VISA runs about $800 per month, just to give a fairer idea of the total household picture. That's the only thing i have in just my name).

I have no significant income and that will not change for several years. I'm just home with the babies right now.

Our proportion of loan balances to loan amounts will fall off as soon as our brand new loans have shrunk with time and payment and the one delinquent payment we've ever made just is what it is. So is the answer to actually open up another credit card or two, pay on the loans as scheduled, and work to get the number back up OR is it to just not worry about TransUnion since we're not using credit for anything in the near future anyway and 732 isn't really bad?

Meanwhile, my score from Equifax was 832 (husband's was 794) and I haven't had any income not reported on a 1099-MISC in about three years.

And since I've typed all of this out anyway, any general advice on handing our current cash flow and debt? We have an emergency fund but haven't set up college savings for the kids yet, in part because once I go back to work, we will have an entire extra income of about $35,000 net to put towards education and retirement.

Investing Deals
5/1 ARM 2.875%
Added on : Friday April 11th 2014 02:00:06 PM
g: 0 Posted By: JDdoc
Views: 78 Replies: 0 Not sure if there's a forum this belongs in as I'm an avid FW'er but not so much FWF

Refi or purchase rate available from Hudson City Savings Bank - 5/1 ARM 2.875% with up to 80% LTV with no premium charged for cash out up to 80% LTV.

I think this is better than most rates in terms of the LTV / cash out option.

They will do a CIMA internally.

If you're selling your home soon / are at a higher rate with >20% equity in your home, etc this is pretty cheap money IMHO.

Chase private client offered to match this (even down to 2.625) with approx $1000 closing credit and 1% annually back on the payments if paid with auto bill pay from Chase account, but they have a markup for cash out and have notoriously low appraisals for your home. My loan was already with HCSB so doing the internal CIMA will also save me some legal fees.

Hope this saves someone some $. My refi from 4.75% on a 15 year fixed will save me about $1500 in interest payments per month...

Deposits Deals
g: 0 Posted By: robronson
Views: 100 Replies: 0 I am self employed as a consultant. I fly to various states throughout the year, some of which, like California, have high state income tax. I'm toying with the idea of creating a series of entities for my consulting to maximize profit by minimizing state income tax burden. I don't have a solid plan, just some ideas to hash out and hear thoughts on.

The general idea would be to use a different entity for clients in different states. For example, suppose I make $20k from California and $180k combined from various other states. I could do consulting in California as a Sole Prop and do the business in other states through an S-Corp. That would let me specify that my $17.5k Individual 401k Employee contribution could come from the California income, reducing the state tax burden.

The alternative would be doing all consulting under a single entity (whether it be sole prop or S-corp or whatever), and the $17.5k 401k contribution gets equally deducted (allocated) from all income. It doesn't make sense to deduct the contribution from income derived from states with zero or low state income tax if I can specify that it came from California income. The only way I can think to do that would be separate entities.

I'm also looking at the possibility of S-Corp with me being a W2 for some of my income because California, and perhaps other states, appear to count W2 income earned differently. For example, as a non-resident of California, if I earn $20k in Cali and $180k externally, if I can segregate the $20k of Cali income, perhaps through a sole prop from the $180k which perhaps goes through an S-Corp that pays me as a W2, then I can more easily show my W2 income was derived entirely from non-California sources and if I can count my 401k contribution to the sole prop income, I can really get my Cali income low. I'm using Cali as an example of my idea and hoping it could be used in other ways.

Another idea is to S-Corp and make me a W2 for partial parts of the year (I have flexibility in my consulting gigs so I can structure each one however I want). Being a W2 might afford me some possible tax benefits such as contributing $3250 to my HSA, from the S-Corp itself, to avoid SE Taxes, as opposed to contributing to my HSA as a sole prop where there's no SE tax deduction. I wouldn't necessarily want to be a W2 through my own S-Corp for the whole year due to overhead costs of payroll, but I could potentially do it for one month, contribute the full annual HSA amount, and then be sole prop for the other 11 months.

I've also heard if I'm an S-Corp I can pay for non-reimbursable medical expenses on a pre-(SE)-tax basis. With high deductible insurance, little is covered, so maybe I could drive my annual $1k or $2k of out-of-pocket expenses to come from my S-corp and save more taxes. Not sure how this works exactly, I only read someone allude to it in another thread.

Finally, as an S-Corp, I should be able to save on SE-Taxes because right now I earn $200k as a sole prop but there's consulting firms who do the same work as me who offered me $120k as a W2 (plus benefits). I think I could take that offer letter for $120k and make a justification to the IRS that if my S-Corp earns $200k, I only have to pass $120k down to myself, pay SE Taxes on $120k, and pass through the other $80k as dividends. However, since the "FICA cap" is around $120k, maybe that won't really do anything to save taxes.

My biggest concern with this is the possible need to register as a foreign corporation in each state I do business as an S-Corp. As a sole prop, I'm free to go wherever and do consulting work. As an S-Corp, I probably have to drop up to a few hundred dollars to register my S-Corp as a foreign entity in each state I work.

Not sure if there's any benefit to having one or more of the S-Corps used this way to be taxed as a C-corp, perhaps to keep AGI down for things like Student Loan income-based repayment or to push AGI down below a threshold for a phase out. Obviously you will be double taxed on the money, but you can defer that second tax until much later, keeping your AGI down right now, which might be useful.

There may be a possibility to bypass the equal quarterly tax withholding payment rule by becoming an S-Corp as a W2 for the last few months of the year. You could maybe pay $0 in quarterly estimated payments and then as a W2 in November/December, you could withhold your entire W2 paycheck to taxes. Since W2 income tax doesn't need to be withheld equally throughout the year. Not sure if this would work or if the penalty would still apply but I have heard of married couples where the husband is self-employed, pays nothing in quarterly tax payments and the wife modifies her W4 to withhold her entire paycheck to taxes the last 2 or 3 months of the year. That might work as a single person if you can make yourself a W2 the last few months of the year.
Personal Finance Deals
g: 0 Posted By: eskimo5079
Views: 168 Replies: 3 I am currently facing a very serious issue as it relates to my student loans. More specifically, I have a private student loan consolidation with Sallie Mae. Due to the very high interest rates, I was currently on what Sallie Mae has termed a rate reduction program. This program was set to end this month and I was planning to try to renegotiate an extension to this rate reduction program due to the regular interest rate causing the payments to be so high that I cannot afford them. When I called in to renegotiate, I was informed that my cosigner had filed for Chapter 13 bankruptcy and that the loan was placed on a bankruptcy forbearance. I was also told that when in this status, Sallie Mae will not negotiate any offers.

Since, I have talked to my cosigner to try to determine exactly what was going on as they have never paid anything to the loan and I have been paying with it totally current. The cosigner has explained that the bankruptcy forbearance as a result of their filing will be in affect for 5 years and that they are unwilling to remove this account from their filling. I am very confused as to how my loan can be locked as I am the primary account holder. In summary, it seems that at the end of this month my interest rate will return to the original interest rate for the loan which is not something I can afford, which will therefore cause interest to accrue and at the end of the forbearance will obviously capitalize and thus end up costing me a significant sum of money.

Any help on getting this issue solved would be greatly appreciated. I am trying to better understand several things. First, can Sallie Mae legally change the status of my loan due to a cosigner and prevent me from continuing business as usually? Can I legally protect myself from the damages that will be incurred due to this? Also, any other help and advice on getting through this would be greatly appreciated. A preemptive thank you to anyone that can help.
Personal Finance Deals
Cancer Diagnosis -- Financial Impact
Added on : Thursday April 10th 2014 11:00:15 AM
g: 0 Posted By: elrp
Views: 127 Replies: 4 Long time member with a new name.

I am female, 49, don't drink, don't smoke, in good shape, healthy diet. Please don't ask for pictures (I am very attractive for my age though). Up until a few days was very healthy. Had some abdominal pain, thought maybe I was having gallbladder issues. Turns out instead I have a tumor which is 99.99999% a freakishly rare form of liver cancer. Still being evaluated, do not know prognosis, could have months, could pull through this albeit with a reduced life expectancy. I assume people will be sympathetic - thanks, but please let's try to keep this strictly to the financial end of things.

Would appreciate help thinking over the financial part of things. I am the financial person in our household, married, one kid on his own, one still in college with 2 years to go.

Owe $120k on our ~$300k house, 8 years to go at 2.5% fixed
Life insurance on me $200k through insurance company, another $80k through work.
$30k loan on 2014 car. 4 other cars paid off.
About $6k left on PLUS loan for kid #1
No other debt
$20k liquid savings
$350k in 401k
$112k lump sum pension
Spouse has own 401k, around $200k there
$5k or so in HSA
Good health insurance
90 day short term disability at full pay for me, long term is 60% of pay

Kid #2 has $100k 4 year scholarship, our expected cost for him to complete college is $24k (housing, fees, travel, food, etc) which we have been paying from income and savings.

Income me $80k, spouse $40k (should increase to $56k in the next year)

While I would really like to have more life insurance on me, other than that I think H should be o.k. should I not survive this. Agree?

What if anything should I be doing now financially? I know I will have to record all our accounts and passwords for the H who is completely financially challenged. What else?

What am I missing?

Personal Finance Deals
Should I refinance my loan from 30Yr FHA @ 4.5% to a 5/5 ARM @ 2.75%?
Added on : Thursday April 10th 2014 05:00:11 AM
g: 0 Posted By: goofydragon1
Views: 78 Replies: 1 I am not sure if this question was every addressed in the forum. I would like to communities POV on refinancing my mortgage. Here are the facts:

Loan Type: 30Yr FHA
Interest Rate: 4.5%
Original Loan Amt: $282500
Current Amt: $265489
PMI: $257.19 (Until ~ 6/2021)
P&I: 1432.12
Current Mortgage (includes: P+I, Home Insurance, PMI, County Tax, and Shortage): $2082.01

Refinancing options with Belvoir Federal Credit Union are below. Closing charges are $3089.30 and $3140.39 in reserves totaling 6229.69 that I will finance back into the loan.

New Loan Options
Loan Type: 5/5 Yr ARM,
Points: 0
Initial Interest Rate: 2.75%
Periodic Cap: 2%
Lifetime Cap: 5%
APR: 2.894%
Fully Index Rate: 2.87%
Requested Loan Amt: $273000
Current Amt: $265489
PMI: $0
P&I: $1114.50
Proposed Mortgage (P+I, Home Insurance, Tax): 1524.60

We plan to move with five years which this loan will make it a now brainier, however, if loans goes up like analyst may suggest we'll probably state in the home much longer. History shows that ARMs have always been lower that 15 and 30 Year fixed rates. The fact I do do know is that our LTV is under 80% but in my current FHA the LTV is 93%. BelvoirFCU also have a a 30 Yr fixed rate @ 4.25% (4.412% APR) w/ 0 points.

Personal Finance Deals
In Need of Tax Shelters - Time to Update 2005 Post!
Added on : Wednesday April 09th 2014 05:00:10 AM
g: 1 Posted By: ProfitNinja
Views: 43 Replies: 2 This post from 2005 has some great ideas but I couldn't find anything more recent (http://www.fullofdeals.com/forums/finance/447023 /) and as I went through the list I found that most of it did not apply to me for a variety of reasons. For some background, my income is currently at 300k and expected to grow annually by about 10% for the foreseeable next few years. I am in desperate need of some sort of tax shelter as the taxation problem will only grow worse over time. Any "outside the box" ideas?

Long-Term Savings:

401k (earn gains on pre-tax $; taxed when withdrawn at retirement) (link) -Already contribute the annual max
IRA (earn gains on pre-tax $; taxed when withdrawn at retirement) - Income limits, can't contribute
Roth IRA (pay no tax on earnings -- invest taxed income) (link) - Income limits, can't contribute
I-Bonds or EE (post 1989) (use towards education and pay no tax on earnings) (link) - Need to look into this to see if viable.

Personal Tax Credits:

Educational Credits (Hope/Life) (link) - Income too high, no go
Adoption (link)
Earned Income Credit (link) - Income too high, no go
Child Care Credit (link) - Income too high, no go
Child Tax Credit (link) - Income too high, no go

Personal Tax Write-offs:

Morgage Interest
College Loan Interest (link) - Income too high, no go
College Tuition and Fee's (link) - Income too high, no go
Donations to Charity (or fair market value of items donated) - Already do this
Moving Expenses (Job related move) (link) - not applicable
Educator Expense Deduction (link) - Income too high, no go
Alimony Paid (link) - not applicable


Incorporating your small business in Nevada and other state-tax free states (to shelter some income from state taxes)
Business Expenses (ex: Eligible Business Travel Expenses) (link)


Flexible Spending Account (link) - Not applicable, I contribute the max to a Health Savings Account - This is probably the best thing since 401k.
Governement Employee 457 account (link)Not applicable.

The only other beneficial tax deduction was for daycare services but my youngest child will turn 13 next year in January so that won't exist anymore!
Tax Deals
correspondence with Department of Education
Added on : Tuesday April 08th 2014 06:00:09 AM
g: 0 Posted By: dave042
Views: 0 Replies: 0 Sorry for the long post but though it is required to put this in context.

Initial email for rate reduction on student loan sent9/10/13:
I just read I can get 0% interest. Attached is my deployment orders toa hostile area.I also read I may be eligible for Military Service Deferment andpostpone federal student loan repayment during certain periods ofactive duty, such as during war, other military operation, or nationalemergency, and immediately following active duty.Am I eligible for both?Thanks. [orders attached]

DOE Response 9/10/13:
This is an automated response to confirm that we have received your correspondence and will respond to your inquiry within 3 to 5 business days. We encourage you to take advantage of other self-serve options available online atwww.edfinancial.com. Thank you,EdfinancialServices Customer Care

DOE Response 9/12/13:
Thank you for contactingEdfinancialServices,
We have received your email attachment(s). The document(s) will be forwarded to the appropriate department and completed within 5 to 7 business days.
Have a wonderful day. If you have any questions or concerns, feel free to contact a representative at 1-800-337-6884 or you may visit our website atwww.edfinancial.com.
Thank you,Loan ServicingEdfinancialServices

DOE Response 9/13/13:
Thank you for contactingEdfinancialServices,
In order to qualify for the 0.00% interest rate, we would need orders stating that you are serving in an area of hostilities qualifying for special pay. Once received, we would be able to apply both benefits to your account. At this time, we will only be able to apply the military deferment and an interest rate cap of 6.00% on your loan. Please allow 5-7 business days to process.If you have any additional questions or concerns, feel free to contact a representative at 1-855-337-6884 or e-mail us atwww.edfinancial.com/contactus/dlcontactHave a great day!Thank you,ClaireLoan ServicingEdfinancialServices

My Response 9/13/13:
I have orders show me serving in Kabul, Afghanistan but does notsaying anything about special pay for hostilities. My "leave andearnings statement" does reflect me receiving hostile fire pay.I would need to know which document you would need.

DOE Response 9/16/13:
Thank you for contactingEdfinancialServices,
You would need to send a copy of your orders. Without processing your paperwork, I am unable to know what you would qualify for.Have a wonderful day. If you have any additional questions or concerns, feel free to contact a representative at 1-855-337-6884 or e-mail us atwww.edfinancial.com/contact.Thank you,MaggieLoan Servicing

My Response 9/16/13:
Find attached my orders. [orders sent a second time]

DOE Response 9/19/13:
Thank you for contactingEdfinancialServices,
If you can submit your leave and earnings statement that reflects that you are receiving hostile pay, then we will be able to consider you for the benefit.If you have any additional questions or concerns, feel free to contact a representative at 1-855-337-6884 or e-mail us atwww.edfinancial.com/contactus/dlcontactHave a great day!Thank you,Claire
Loan ServicingEdfinancialServices

My Response 9/19/13:
Attached is my LES. Line E is the hostile fire pay (HFP).

DOE Response 9/24/13:
Thank you for contactingEdfinancialServices,
You are ineligible for the Hostile Duty interest rate reduction. This is because you have underlying loans in your Consolidation loan that were disbursed before 10/01/08.If you have any additional questions or concerns, feel free to contact a representative at 1-855-337-6884 or e-mail us atwww.edfinancial.com/contact.Thank you,Ellen
Customer CareEdfinancialServices

So I spent 14 days dealing withClaire, Maggie, and Ellen only for them to tell me I was really not eligible for the rate reduction which they could have told me in the initial email. Nowhere on the website am I told about the 10/01/08 restriction.
g: 0 Posted By: Gauss44
Views: 18 Replies: 0 Sallie Mae agreed to postpone my payments on non-federal student loans for 3 months, which would have saved me about $2000 in the short term. I contacted them because my online account was still reading "past due" weeks later. Customer service told me that they just changed their minds. That plus a $2000 tax bill has me in financial turmoil.

I doubt there's anything I can do about Sallie Mae not honoring their verbal agreement. In was wondering if there's anything I can do in the future to make sure Sallie Mae honors their future agreements with me, should there be any? Or at least to protect myself if they do this again? (I might have to deal with them again since I'm planning to go to medical school.)

My thoughts: Maybe I could also tell them I'm recording the phone call and do so. Maybe that would allow me to sue if they lie again? And maybe they wouldn't offer me anything under those circumstances...
Tax liabilty question
Added on : Monday April 07th 2014 07:00:07 PM
g: 0 Posted By: jacobhorne
Views: 52 Replies: 0 I started a new job this year as w2 employee. I work about 300 miles away from permanent residence (2 weeks on 1 week off). I have to buy my own tools and vehicle. My question is, I bought two cars. One to commute back and forth, and one to work while on the clock.

What can I write off in this situation? both vehicles by depreciation? miles?

What are some other ways lower my tax liability? Single male. monthly salary ~6k, ~65k-70k yearly. I own my primary residence outright. I have some student loan interest but very minimal.

Would it be tax savvy to start an IRA?

Parents' large assets to Roth best transfer options?
Added on : Monday April 07th 2014 04:00:07 PM
g: 0 Posted By: derfderf1984
Views: 81 Replies: 0 Question: What should my parents do to reduce cost (Tax) and increase amount in Roth or fringe benefits?

- Dad is fixated/bitter to the fact that he worked hard and was responsible, but will have his assets depleted before most assistance programs kick in while those not lucky enough to get a pension buyout will get the government aid free sooner.
- Generousparents want to get the funds to a ROTH IRA so that my brother and I can inherit the funds andkeep them in non-taxable accounts only taking mandatory withdraws.
- They want to keep the taxes they pay on the transfer to a minimum or receive a benefit that makes up for the tax hit. Today comfortable with staying in the 25% tax bracket.
- Parents are 65ish
- The first world problem is, the stock market gains are more than the amount they can roll over to a ROTH every year thus they will never be able to roll over the whole amount into a non-taxable account.

My thoughts on options:
1) Just stick to the plan the tax hit is not justified until I loose one of my parents. (Pro: keep taxes low Con: may incur taxes later, might not accomplish their goal.)
2) Take more of a hit to get to the point of no reportable income. Then apply for aid programs that do not have means tests to determine eligibility. (Pro: goal complete,minor benefits poor people get Con: lost flexibility in accomplishing goal, feel like deadbeats)
3) Is there a way to take a loan fromyour traditionalIRA secured by some note that the traditional keeps while you fund the Roth with the loan money so it is not income just loan money? (Don't know if doable because it is loan money not earned money going into ROTH)
Investing Deals
Timing of applications for credit cards / auto loan
Added on : Sunday April 06th 2014 10:00:08 AM
g: 0 Posted By: DrBison
Views: 133 Replies: 0 Hi,

I'd appreciate some informed advice. I've been urging my girlfriend for years to get a credit card and she hasn't followed through. She's relied heavily on her Visa debit card and hasn't grasped the importance of the differences between credit and debit cards. There was a period where she had a Macy's card that was also a credit card (as far as I know), but that was a source of a lot of confusion and in any case the card expired. She hasn't used much credit. She has been and still is paying a student loan and at some point she had a Care Credit account (don't know the status). I think that's about it.

I'm insisting that she get a proper credit card now. I think she should get at least 2 cards now while her finances are pretty good and she should be able to get them. The plan will be to pay in full every month. There's a possibility that she'll need an auto loan for a used car in the near future. And her finances need to get oriented around being able to get a mortgage in the next few years.

If she applies for 2-3 credit cards, what timing makes sense? Does applying for 2-3 cards on the same day have any particular advantages / disadvantages? How about same week? Month? Should she get one and wait a few months to apply for another? How would these applications affect applying for an auto loan?

I've described her credit utilization. I don't know what her credit score is. She doesn't have any defaults. No medical debt. At the moment she has good income.

If people want to recommend specific cards too, that's fine. I'll recommend to her to get something pretty straightforward. First and foremost I'll recommend that she get a Visa card. I'm thinking maybe the second card should be another kind.
Question Deals
Student loan provider screws up account balances. Recourse options?
Added on : Sunday April 06th 2014 07:00:07 AM
g: 0 Posted By: ricksreck
Views: 14 Replies: 0 Hi FWF, this one is painful as it is quite a pickle.

My student loan provider, "mygreatlakes.org", had a "system glitch" (as the customer support manager called it) sometime between February 10th and March 10th. The glitch was blamed by the support manager for the incorrect account balances displayed on multiple loan holder accounts. In my case, the total account balance for all of my loans was not manipulated, but the individual tokens (the different accounts with different interest rates that make up my total account balance) was. Here are the details:

1) I made a payment on January 27 to pay off the entire balance of my higher interest rate loan. 100% of this payment should have been applied to my higher interest loan because:
i) I am already ahead on my payments until January of 2017.
ii) and I already made a payment earlier in the month of January (so the requirement of applying a portion of your monthly payment to the other tokens in your account does not apply here --That was done for the earlier payment in January).

2) On February 10th I logged into my account to see that the transaction was properly processed. I found only 85% of my payment went to the higher interest loan, and the other 15% went to the lower interest loan. (instead of the entire 100% to the higher interest loan.

3) I immediately took screenshots of the transaction details for reference. I have details showing:
i) the transaction amount is equal to the balance of the higher interest loan balance (before the Jan 27 transaction)
ii) both my higher and lower interest loan balances before the transaction
iii) the loan balances after the transactions

Now the situation gets juicy!

4) I called to dispute the facts. The customer service rep apologized and said the account would be corrected within 10 business days.

5) I called back in 10 days because the new balance on my higher interest loan was over $1000!!! they actually added to my net account balance. Customer service apologized and said the account would be corrected within 10 business days.

6) I called back in 10 days. The balance was still not $0, in fact, it was even higher than the 15% left over from my Jan 27 payment (reference point 2 above -only 85% of my payment went to my higher interest loan I am trying to pay off). Now the transaction had been re-re-adjusted so that only 75% of my payment went to the higher interest loan. It only got worse... ughhhh!

7) I called back. The first time they said they would fix it and to check back in 10 days. 10 days later it still was not fixed.

8) I called back. This time the customer service rep did not believe me that my account should be at 0% for the high interest loan (problem #1), nor did she believe that my higher interest loan balance was previously at 15% of my January 27 payment (problem #2).

9) good thing I took screenshots... I emailed her the screenshots of the original transaction details.

10) She called me back four times over the course of two weeks; either to tell me they are still looking into it or to ask me questions. by the third week of her investigation I had not heard back from her.

11) ...So I called back... I got a new manager. This one blamed the balance issues on a "system glitch" which affected many different borrower accounts.
i) I asked her why I had not been informed of this upon its discovery. She said there was no need because it was quickly fixed. I became furious, but held my temper best I could.
ii) I asked her details about the glitch: how it happened? what did it do, exactly, to my account? I asked her to explain how the old 15% balance was figured before this hypothetical "glitch". ...She only started claiming facts off the top of her head which made me even more furious, but I still held my temper best I could.
iii) I requested all account history since my grace period ended (which was less than 6 months ago, so not very difficult). ...she couldn't even get that right because she only sent me history for the higher loan loan. Also, please not that the "history" information she provided me was generatedonly afterthis mysterious glitch. So, even though they may reflect the payment history as their system notes it is to date, there is no way of telling if this "glitch - correction" didn't modify my payment history distributions to individual tokens as well. This is what scares me, because if there was a glitch to begin with, how can one be sure that the system didn't glitch again in what they call their "glitch - correction". [Unfortuately, I am not lucky to have full account transaction history screenshots to accompany my Jan 27 transaction].

That said, Is there any recourse to this? mygreatlakes.org offered to backtrack the interest to my Jan 27 payment (just wipe it out), which is a nice gesture, but they will not re-re-re-adjust the account (put the account back to the way I saw it when I took screenshots --problem #2.

Do I have a right to not pay any loans until they can prove that this was actually a glitch, AND that the current balance is actually correct. They haven't been able to do either of these things. I don't believe I should be obligated to make payments again until they can show me exactly WHERE and HOW this happened, and that it is in fact fixed. I had been following the old account history (prior to the glitch) and making multiple payments a month. I never noticed any incorrect calculations for any of those transactions. Please note: I am not saying i shouldn't pay my loans, I am saying I shouldn't be obligated to make payments or be charged interest until this issue is truly corrected... don't forget, they also failed to inform me in any way that my account had been "glitched" and manually manipulated to "correct" the glitch.

As forproblem #1--higher interest loan balance should be 0%-- that is just a whole other can of worms. I'll save that for a different day... maybe another thread.

Thanks guys!
Is there anyway to get a short term loan with 0 interest rate
Added on : Friday April 04th 2014 07:00:07 PM
g: 0 Posted By: ammoun
Views: 163 Replies: 4 Hello,

I'm buying a used car and I'm $7k short. The car costs about $30,000 and I'm paying the rest in cash.

Is there anyway I can take a loan with 0 interest? I don't care if it will be 6 or 12 months but it has to be exactly 0. Do you have any recommendations?

New User Question Deals
New graduate starting a business
Added on : Thursday April 03rd 2014 04:00:06 PM
g: 0 Posted By: BloodyInsane
Views: 114 Replies: 0 This is my first time posting in FWF.
The gist of it:
I'm graduating with $19,000 in student loan debt and have a 6 month grace period I want to take advantage of. I have enough savings live and pay interest during the 6 months. So, during the grace period, I want to start multiple tech business, some with partners, some without. Good idea? Bad? Best course of action? General advice?

As far as personal finances go, I think I'm a little ignorant, but as far as business finances go, I know I'm pretty much in the dark. I'm graduating in May with a computer science degree from UC Berkeley. At the time of graduation, I will have accrued about $19,000 (principal+interest) in student loan debt, $11,000 of which is unsubsidized at 6.8% and $8,000 of which is subsidized at 3.4% with a 6 month grace period after graduation. It's not a trivial amount of debt but it's also not a mountain of debt either, and I have more than enough savings to live and pay off interest during the 6 month grace period before repayment starts. I have family and friends in the software industry, and currently have job offers on the table. Let's assume employment is not a problem.

I figured, during the 6 month grace period, it would be as good a time as any to pursue my multiple side projects more seriously and try to develop them into viable businesses. Once I start working a regular job and repayment kicks in, it doesn't seem like I will never get this opportunity again, especially if I work for a company with an Intellectual Property clause and anything I do becomes theirs anyway. For two of my projects, I have partners, so we would eventually form an LLC (or possibly an S corp). For my personal software projects, I am the sole developer and will likely outsource some non-coding work to independent contractors. As such, it seems like a sole proprietorship is the way to go until I bring in long-term partners and incorporate. I also occasionally develop games on the side, and would like to form a business through which I can publish those games, also likely to be a sole proprietorship, but it's not a rush. I can't get into details about the projects, but from a development standpoint, they require little to no capital, however, they are time-sensitive ideas that need to be executed ASAP (like anything else in tech) or we risk obsoletion/being beat to the punch.

From a high-level view, does the general plan make sense? I understand it's risky, and I've hung around FatWallet enough to know that there's probably a thousand things I'm overlooking. I'm just looking for general advice and to maybe get pointed in the right direction as far as looking for legal and financial advice, or to be told it's a terrible idea and to just get a job.

Discussion Deals
Timing Student Loan and Credit Cards
Added on : Wednesday April 02nd 2014 06:00:07 PM
g: 0 Posted By: InANutshell
Views: 142 Replies: 0 Hello:

I've read through the FAQs, guidelines, and some other helpful posts as well as searching the forum, but I did not find something directly answering my question.

I am planning on opening two credit cards (by August, one hopefully in the next week or so but can wait on the other). I am in grad school and thus will also be applying for a student loan in the next few months.

I am curious as to the timing of these requests. It seems best to apply for the student loan (since the interest directly relates to my credit score), then the cards. I read on the FAQ (I believe it was there) that you recommend trying to obtain all new credit on the same day, but then in another part of the stickied posts, there is a recommendation to wait at least a few weeks or months between new credit cards.

Would it be more advisable for my to apply for a student loan and both cards in one day or to space it out in some other manner? I am also hesitant about applying for a private loan so early when the federal rates have not come out, but I usually have a high enough credit score that my private rate is lower (plus no origination fee and graduation forgiveness) - but that's another matter.

Thanks in advance!
Personal Finance Deals
Would you loan money to a friend?
Added on : Wednesday April 02nd 2014 06:00:10 AM
g: 0 Posted By: nasheedb
Views: 27 Replies: 1 Yes, I know the rule of thumb is to never loan money to your friends. But hear me out.

A long time friend who operates a 500 acre farm called me and asked if I'd be interested in loaning him money for 6 months. He's looking for $20k to buy fertilizer. The bank will lend him money at 10%, but he wanted to see if I am interested in beating the 10%. I could probably loan it to him at 8%, and yes, I do have the money in a savings account earning .9% right now. In exchange, he is willing to put up a 1970 Chevelle SS as collateral. We would do a proper contract that would be enforceable in a court of law. I'm very tempted, it could be an easy way for me make $800 basically.

Would you go for this?
Personal Finance Deals
Mortgage - Circular Private Lending from Oneself
Added on : Tuesday April 01st 2014 08:00:07 PM
g: -1 Posted By: Rowgue
Views: 71 Replies: 0 After reading through many dutch sandwich schemes, I was thinking ways to maximize mortgage interest deduction to reduce the taxable income.

Not sure, if this is possible, but if it is, I would ask the people here of their views, pros and cons on this. If this arrangement is possible do people already do this, if not why have they not done this?

The arrangement is like this:
1.Have some or lot of equity in your primary residence
2. Borrow your own money from a creatively structured way at a high interest say 7.5% or 10%
3.The new lender files the lien with the county on your property
4.Pay or say you pay interest/principle or what ever per contract monthly (a private transaction)
5.Claim more more mortgage interest deduction, points etc when itemizing reducing taxable income

For Step 2: You can do one of the following
-Set up and fund a company that does private loans and you will be the 1st customer
-Make your trusted relative (with less income) as the lender who collects the PI - I really mean trusted relative like mom or dad
-OR any other creative way you can suggest- please do suggest

-On the company route-as its a relatively small company the expenses and cost of doing business might negate the profits from the interest collection in a given year which might reduce/negate taxes
-On the relative route-the lender who has low income might not get taxed at all (for the interest income) or might get taxed at a lower rate. Even if they get taxed at a lower rate fix your interest rate such that the net tax savings from your taxes and the lenders taxes are in positive territory.

Did I make it clear to understand?

Is this technically possible? Leave alone ethics etc...


Discussion Deals
Another IRS Audit Risk Reduction Puzzle
Added on : Tuesday April 01st 2014 12:00:07 PM
g: 0 Posted By: ToddC
Views: 52 Replies: 1 If IRS owes me, let's say $10K, because I overpaid my tax estimates, would it reduce Audit Risk in general if I applied this to my 2014 taxes as credit (as a lump-sum advance payment for 2014 tax estimate payments) rather than requesting a refund due to its large amount, or it "absolutely" does not make any difference? I guess IRS would be happier if I extend them a free loan (although still this would be my lump-sum tax estimate payment for 2014 instead of paying them in quarterly installments).
Tax Deals
Advice needed: Financing a new home before selling the existing
Added on : Tuesday April 01st 2014 04:00:12 AM
g: 0 Posted By: clouser
Views: 108 Replies: 0 I am looking for some guidance on how to purchase a new (used) home before selling our existing property. We have significant equity in our home, but with the market conditions, I expect we will need to forgo a selling contingency on the existing home to get an offer accepted on the new home. The new location is a much hotter market, and properties are selling within 24-48 hrs of listing. Our area is a good market also, but I could see it taking a couple months.

Does it make sense to apply for a large HELOC against the existing home, and use that as a down payment on the new home? Would us having an existing first and now second mortgage on the first home effect our ability to apply for a new mortgage? If we apply for the new mortgage first, would it effect our ability to get a large HELOC/HEL? Any other ideas how to best handle this?

Some numbers (all approx)

Combined income: Approx $225,000
Value of existing home: $500,000
Remaining loan on existing home: $200,000
Equity in existing home: $300,000
Existing mortgage+escrow payment is $2,800 a month (we had refi'd down to a 10 year mortgage with plans to have it paid off quickly, we had not been intending to move at the time)
New home price: $400,000 - $450,000 range

We have no dept at all other than our home. Cars are paid off, we have credit cards but carry no balances.

Personal Finance Deals
To Buy or not to buy a house?
Added on : Saturday March 29th 2014 11:00:09 AM
g: 0 Posted By: rodge
Views: 156 Replies: 0 I'm a long time lurker when it comes to FWF, but am hoping that I can lean on the wisdom of you all to give us some thoughts on the decision making.

My wife (34) and I (38) are currently planning/debating to buy a house in summer 2014 to give our kids the benefit of a better school district. We are somewhat confident but also scared about that decision.
We live in MD and currently live in a town-home we purchased in 2006 for $390,000 which is worth about $330K now with about $257K left in Mortgage. Loan is at 3%, 15 yr Fixed. Have 2 girls 6 & 2. Planning to rent this property for about $2200/mo and pay the difference for the 15 yr loan. (I could convert it to a 30 yr loan, but want to build some equity as long as we can do it)

Household Income:
I work as a contractor in the Federal Govt while my wife works in the Energy Industry as a Financial Analyst. I bill about $97/hr through my Incorporated company, my wife makes 100K as an employee. I have been averaging about $90+ an hour for 5 years now with three diff clients. If I ever loose my current gig or need to find a job quickly, I'd be able to get a 100-115K job quickly instead of waiting for a high paying job like I usually do.

Wife & I take home: $14,000/mo after taxes
Expenses: Mortgage & Escrow: $2,550/mo
All Other Family Expenses: $3,500
(Groceries, Gas, Kids classes, clothing etc)

FICO score: 787 & 798.

Savings (Cash): $85,000
Savings (Stock, Bonds): $128,000
401(K): $212,000 Combined ($60 K Wife's)
No Student or Auto Loans or Credit Card Debt

Assets which I won't use for buying house:
Condo in Asia: $100K (Gift to dad from me; might inherit it someday)
Cash Fixed Deposits abroad for parents maintenance: $100,000

The New Home Budget: $700K (upto 800K if required)

Question: If we pay 20% down which is what we'd like to do ideally to avoid PMI's, we will be down to about 30K left for emergencies after accommodating for closing costs, moving expenses, prepping existing house for renting.

Is there any way to avoid paying PMI and pay only 10-15% in down payment? We are targeting to be in a new house by July giving us some more time to build more cushion (emergency fund).

While we'd like to postpone by one more year, possible mortgage rate increases worries me. Or I read about banks giving Jumbo loans on 15% down payment and waiving the PMI if the collateral is an Investment or Money Market account.

Or Should we even buy a house this year? Or wait for another year? (We'd like to move to a school district which has better GT, Honors, AP, AAP courses down the line)
Thanks in advance for taking the time to read my post and offer some insight.
Question Deals
Looking to Refinance a Private Student Loan
Added on : Friday March 28th 2014 02:00:07 PM
g: 0 Posted By: hurricanedarby
Views: 147 Replies: 0 I have a private student loan of about $18,000. I'm with AES right now on a 15 year plan with 5% interest. Not a bad deal but I started reading some articles regarding some portion of the government asking banks to open up their channels again to refinancing private student loans. I would like to drop that interest rate down to 3% (I guess that variable rates are around there right now if not a little lower). Since it is just coming back I'm only finding random banks here and there that will refinance. Does anyone have any suggestions as to who could do it? I know Wells Fargo will (but their rates are a lot higher than the smaller banks) and I am familiar with Sofi and Charter One. Thanks!
Personal Finance Deals
g: 1 Posted By: BRIANW001
Views: 91 Replies: 2 Please dont flame I have searched forums and I have searched the internet and only found one posting on negative income due to NOLs

Hello Fatwallet group,I am seeking advice or insight on how to improve my chances for a First Time Home Purchase. Previously I was turned down to use large NOLs from a previous LLC. The LLC is now closed but my CPA says I must take the NOL write downs. NOL are due to run out in 2014 taxes which would be in mid 2015.I was previous denied a loan with 30% down FICO 800+ and 170k in annual dual income. Bank said I was a solid candidate but when the underwriters received the paper work theyjust kept stringing me along. My CPA said after talking with lender that bank does not want to make the loan. CPA said instead of denying you they will just keep asking for more paper work. I only applied to one bank and it was heartbreaking. With interest rates low this may be my last chance to purchase a home with a good fixed rate in an area I want my kids to grow up in.My Mortgage specifics.
Northern California Home estimated 650K loan 350k Down(yes this is the going rate for a home in this area)

Offering 30% - 35% down (seems like the banks dont care about this number as long as it is above 20%)
Fico 800+
Wife and my income 180K a year

Wife employed outside of family business (no gaps in work history)

I am employed by our family business for over 15 years (no gaps in work history)

Last year withdrew from all LLC membership. I am ona salary work with no ties to business doing the same work.
LLC are owned by siblings who live in another state
Income has been stable over past 3 years

Since all NOLs (Net Operating Losses) are now passive what are my chances of getting a loan?
I have found that the loan officers do not speak to the underwriters as a security measure.

Does this mean my chances are determined by which underwrite I am assigned? My CPA says it is amazing how little underwriters know about actual finance and that NOLs actually provide refunds going forward on taxes.

Is there a way I can structure my information better, or talk to someone else at the bank I am trying to get the mortgage from?

I talked with mortgage bankers that say they talk to their underwriters is this a red flag? I heard this is not how the system works.

If anyone hashad asimilarexperiencesplease share them with me. It seems that theMortgageBankersstill so not knowexactly what the underwriters want,also some of themortgagebankers seem like they don'twant to spend time on mymortgagewhen they have easiermortgagesto originate. I hope now thatrefinancinghave droppedsignificantlythat they are more willing to work with more complexmortgages.

Thanks so much for any constructive advice.
Tax Deals
Pay off zero percent interest loan, or invest? What would you do
Added on : Thursday March 27th 2014 09:00:10 AM
g: 0 Posted By: unkinected
Views: 248 Replies: 10 This is similar to this thread but not specifically regarding credit score.

I have a zero percent interest loan, that through automatic payments is scheduled to be paid off in 6-7 months. But I have cash to pay this off now. The question is should I pay off the loan now, which frees up the monthly income to spend/invest elsewhere, or just wait for it to be paid off in 7 months, and take that extra cash and invest it somewhere?

Investmentmath tells me that I would come out ahead (slightly) by investing the money now rather than later. Inflationary math also says wait to pay it off. Not sure if there's any kind of math that says pay it off now.

Curious how the gang here would approach this.

Personal Finance Deals
Anyone know a good place to get private student loans for grad school?
Added on : Wednesday March 26th 2014 06:00:08 PM
g: 0 Posted By: rza1
Views: 141 Replies: 0 I'm currently looking to get a loan from either Charter One bank (https://www.trufitstudentloan.com)or from Discover (https://www.discover.com/student-loans/graduate-student-loans.html)
They both have no origination fees and have competitive rates. The Charter One bank TruFit loan appears to have better terms, but I need to research more into it before I submit the loan application.

Are there any other good places to look at for private student loans? I'm looking for about $65K

Question Deals
15 year fixed or 30 year fixed
Added on : Wednesday March 26th 2014 04:00:13 PM
g: 0 Posted By: samandy
Views: 191 Replies: 2 For a home price of about 400-425K, which fixed mortgage will you prefer, assuming you can afford down payment for both 15 year or 30 years.Interest rate difference is about .8.
My calculation says for 15 year you will pay probably 25-30% more per month but for the duration of the loan you will pay 200K more in interest rates.
What are your thoughts? Am I missing something.

Welcome your input!
Real Estate Deals
Do we live frugally or excessively or normally?
Added on : Tuesday March 25th 2014 01:00:05 PM
g: 0 Posted By: couponqueenabk
Views: 271 Replies: 16 Spouse and I are both 30, no kids. I make $80k-$88k/year depending on bonus awarded and my husband makes $70k. We each defer 8% into our respective 401ks. Two car loans totaling $750/month and mortgage payment (which includes escrow amts) totals $1,400/month. Student loan repayments = $1000/month (minimum payment is $350, but we are trying to get it paid off ASAP). No other debt. Credit cards are paid off in full each month. I FEEL we don't spend extravagantly - we take one vacation per year and go out to each 2-3 times per month. I feel like we collectivelymake a decent salary; but find it hard to keep up. I'm just curious if this spending seem excessive or frugal relative to others?
Personal Finance Deals
Need advice reg a College decision
Added on : Tuesday March 25th 2014 09:00:14 AM
g: 0 Posted By: Boochi
Views: 195 Replies: 4 I am here in US on a H1-B visa for the last 11 years, living in Ohio state and I don't know when will I get my greencard (in India-EB3 category) and my family is on H4 visa. This reg my son. He did all his schooling (from 2nd grade) here in USA and currently a high school senior. He is a bright kid with lot of AP courses completed in Math & Sciences with distinction and his ACT is 27. He has ADD issues (and little depression issues too, again not aggressive or violent), due to which his grades were not consistent in his high school and when it comes to languages he never made beyond C (there were Ds & Fs also in some quarters). He applied to 5 or 6 colleges locally, again due to our visa status, he had to apply as International student. But all the colleges have rejected him. Currently, I have the choice of only community college, but I wanted to give him the real undergrad college experience. Does anybody out there in my shoes? Does anybody have suggestions how do I go about? I can spend upto $20-25K per year for his college (and he won't get any loans, neither he can work part-time due to his Visa type).

Personal Finance Deals
Removing PMI - Wells Fargo is Evil :(
Added on : Monday March 24th 2014 04:00:06 PM
g: 0 Posted By: SaguratuS2
Views: 119 Replies: 2 Hey everyone,
I've run into my second major issue dealing with Wells Fargo on my mortgage (the first time, they 'lost' $10k worth of principal payments, which took nearly half a year to fix). I went to remove my PMI from my loan, and WF said I still had $20k to go. My loan-to-value is just below 80% at 151k, with the original appraisal being 189,000. I refinanced back in early 2012, and I discovered that they put the refi amount as the appraisal ($164,000). I've been fighting them for months on this issue, and I've gotten absolutely nowhere.

They said I could order another appraisal, but they won't consider it unless I've done something to the house to increase its value. Right now, I'd estimate it would appraise around $214,000 given the market, but I haven't made any notable improvements.

Am I SOL, or is there anything I can do?
Personal Finance Deals
Sell Real estate or Keep Student Loans.
Added on : Monday March 24th 2014 06:00:17 AM
g: 0 Posted By: branttucker
Views: 65 Replies: 1 =14pxI have $80,000 in school debt. I'm paying ~$1,000/month for 10 years. I have a condo (paid off; $120,000) that is bringing in $850/month. I also have a mortgage on condo I'm currently living in. I pay $650/month for 30 years. I just started a business and I hope to break even by the end of the year.
=14pxShould I sell the condo that I have renters in and pay off my school debt or keep it?
=14pxThanks, Rookie.
Personal Finance Deals
Refinance with negative points - How does this impact income tax?
Added on : Sunday March 23rd 2014 04:00:03 PM
g: 1 Posted By: NorthStar2020
Views: 87 Replies: 1 I refinanced in 2013 for a mortgage loan with negative points. Since I'm doing my taxes with TurboTax, it only mentions scenarios where points were paid by owner. When a point is paid in refinance, the owner amortizes it over the life of the loan.
How does it work out when the home owner receives points ? We are talking here about 3K of negative points.
Real Estate Deals
g: 10 Posted By: remick
Views: 1325 Replies: 3 http://www.amazon.com/dp/B008CQGBXE

4.9 out of 5 stars (21 customer reviews)

Your credit history and the scores that go along with it serve as your passport to full participation in the U.S. economy. Your ability to take full advantage of numerous financial benefits will be limited, to whatever extent this passport is not in good standing.

Actually several books in one, The Newest Story of O is a concisely written and highly readable source of high-quality, how-to material, creatively connecting personal credit with debt minimization. It boldly goes where no such book has gone before, offering cutting-edge inside information, while exposing many commonly perpetuated and potentially harmful myths.

With this information at your fingertips, you will be able to convert your high-interest debt to low interest and even zero interest, paying it off in a fraction of the time. If your goal is to become debt-free or simply to improve your financial position, you wont want to miss out on what this book can teach you.

The ten-chapter framework is organized as follows: (1) How the Credit System Works, (2) How to Obtain and Understand Your Reports and Scores, (3) How to Repair Bad Credit, (4) How to Build Good Credit, (5) How to Play and Win the Credit Card Game, (6) Zero-Interest Balance Transfer Offers, (7) Low-Interest Loans and Peer-to-Peer Lending, (8) Fight and Win Against the Banks and Bureaus, (9) Tips for Making Money and Tips for Saving, (10) Ten Special Topic Area "Cheat Sheets": Bankruptcy, Credit and Marriage, Credit and Divorce, Credit Counseling, Debt Collection, Debt Consolidation, Debt Settlement Companies, Foreclosure, Home Loans and Identity Theft.

Highly accessible in its presentation of a rich font of valuable, practical knowledge, if you only buy one book on personal credit or debt reduction, this is clearly the one to get.
Totally Free Deals
USDA Rural Development Dept DEMAND FOR PAYMENT
Added on : Thursday March 20th 2014 02:00:05 PM
g: 0 Posted By: mesquite
Views: 8 Replies: 1 So I received a letter this week from the USDA Guaranteed Loan Branch demanding payment of $82,000 to reimburse them for paying off my defaulted mortgage.

This is a pretty scary deal as it appears that I've been fooled and gotten myself into a situation that is going to cost me some money....almost my entire savings and I'm 69. I have $101,000 with Ed Jones, Inc.

Some questions I have would be how to handle this. Will they offer a reduced amount or do they stick with the first number? If I let it go I'm told the Treasury Dept will garnish my social security check. But I've read several times that they will stop at 15% of your check.

I've read enough to know that this bunch will get their money....but if anyone has any advice I would certainly appreciate hearing it.
Real Estate Deals
Student loans vs. investing in employee stock purchasing programs
Added on : Thursday March 20th 2014 08:00:16 AM
g: 0 Posted By: rxgolfer
Views: 34 Replies: 0 Hello, to start it off I am a pharmacy student graduating in May.

What do you all think about paying minimum on my student loans and investing my extra money in my employee stock purchasing program?I know investing in the company you work for is a bad idea for the most part, but with Obamacare on the way, I would speculate the stock of pharmacies will be going up in the future (e.g. RAD from .20 cents to $7 in just a few years; CVS 20 - $80 in 4 years). On top of that, usually, you can buy company stocks at 10-15% discount (but you have to hold for a month to a year.) My average interest rate is 7%, crossing my fingers that my company stock doesn't dip and even possibly increase by a few percent, I could be making 2-7%+> in profit that I can contribute towards student loans later. I know this is risky and very speculative. What are your thoughts? Should I pay my loans off this way??
Question Deals
g: 0 Posted By: remick
Views: 65 Replies: 0 http://www.amazon.com/dp/B008CQGBXE

4.9 out of 5 stars (21 customer reviews)

Your credit history and the scores that go along with it serve as your passport to full participation in the U.S. economy. Your ability to take full advantage of numerous financial benefits will be limited, to whatever extent this passport is not in good standing.

Actually several books in one, The Newest Story of O is a concisely written and highly readable source of high-quality, how-to material, creatively connecting personal credit with debt minimization. It boldly goes where no such book has gone before, offering cutting-edge inside information, while exposing many commonly perpetuated and potentially harmful myths.

With this information at your fingertips, you will be able to convert your high-interest debt to low interest and even zero interest, paying it off in a fraction of the time. If your goal is to become debt-free or simply to improve your financial position, you wont want to miss out on what this book can teach you.

The ten-chapter framework is organized as follows: (1) How the Credit System Works, (2) How to Obtain and Understand Your Reports and Scores, (3) How to Repair Bad Credit, (4) How to Build Good Credit, (5) How to Play and Win the Credit Card Game, (6) Zero-Interest Balance Transfer Offers, (7) Low-Interest Loans and Peer-to-Peer Lending, (8) Fight and Win Against the Banks and Bureaus, (9) Tips for Making Money and Tips for Saving, (10) Ten Special Topic Area "Cheat Sheets": Bankruptcy, Credit and Marriage, Credit and Divorce, Credit Counseling, Debt Collection, Debt Consolidation, Debt Settlement Companies, Foreclosure, Home Loans and Identity Theft.

Highly accessible in its presentation of a rich font of valuable, practical knowledge, if you only buy one book on personal credit or debt reduction, this is clearly the one to get.
Totally Free Deals
MBA value/cost tradeoff
Added on : Tuesday March 18th 2014 01:00:03 PM
g: 0 Posted By: CAguyIP
Views: 53 Replies: 1 I have a few questions for fat wallet community
1) What are ya'll thoughts on doing a part time MBA from a UC (for an computer engineer with 5 years of work exp)? Total cost is about ~130k .. I plan on taking a loan of 70k with employer covering 50k.
2) Almost seems like if I can put that 130K in a REIT or a mutual fund I might be better off 5 years from now..
3) Is it worth taking a student loan?
Discussion Deals
How to hold title for home in Ca
Added on : Tuesday March 18th 2014 08:00:09 AM
g: 0 Posted By: 07pilot4me
Views: 128 Replies: 1 searched for this in FW, did not really get a definitive answer.

what in your opinion is the best way to hold title in Ca

1) the loan will strictly be in my name (wife has athin credit file)
2) confused between the difference between community property with right of survivorship vs community property as far as the state of Ca is concerned
3) would like to consider tax implications and also protecting ourselves if unforseen circumstances arise

any help/feedback appreciated.
Personal Finance Deals
Financial Checkup - Full Disclosure
Added on : Sunday March 16th 2014 08:00:14 AM
g: 0 Posted By: barsotti0
Views: 174 Replies: 2 I'm looking for some constructive criticism or feedback regarding my current savings/retirement state. I've been on FW for years, and continue to improve our situation but can always use another point of view.

32 years old, married (spouse is 29) with 3 month old baby
HHI = $110k
Spouse stays at home
Live in California East Bay

Home value - $425k (purchased in 2012)
2008 Nissan Altima - $11k
2012 GMC Yukon - $33k
401k - $85k
401k - $5k (spouse)
Savings - $85k
TOTAL - $644k

Mortgage - $238k at 2.75% (7/1 variable)
HELOC - $0k balance ($100K CL at 5.25%)
Car Loan - $24K loan at 1.99%
401K loan - $21k at 3.25% (used to purchase condo in 2012)
TOTAL - $283K

NET WORTH - $361k

Monthly Cash Flow:
Net income - $4,975 after 401k/benefits/taxes/fsa
10% into401k - $820 a month, with 5.5% additional employer match
Bonus net income - $700 a month after 401k/taxes
50% into 401k - $583 a month, with 5.5% additional employer match
TOTAL - $5,675

Monthly Expenses:
Mortgage - $985.9
HOA - $240
RE Taxes - $267
Ins - $54
Car Loan - $375
401k Loan - $176
Life Ins - $85
Auto Ins - $140
Utilities - $134
Cable/internet - $140
Cell phones - $130
Grocery - $600
Gas - $350
Eat out (work) - $150
Eat out - $250
Dog - $40
Hair cut/dry cleaning - $45
TOTAL $4,162

My general question, given current net worth and monthly cash flow, are we currently putting sufficient money towards retirement. Also, we are debating the purchase of a new home (would sell current condo that is a 2/2) to accommodate another kid. Price range is somewhere around $600k.

Thanks in advance
Personal Finance Deals
Continuing Education for (Fun and) Profit?
Added on : Sunday March 16th 2014 02:00:05 AM
g: 0 Posted By: Dus10
Views: 0 Replies: 0 While it is not good, I am sure that I am not alone in having student loan debt here on FWF. I am working to pay it down, however, and I have come up with a (likely unoriginal) strategy to reduce my interest payment.

A little background: I attended a private school for undergrad that was paid 50% through tuition reimbursement and then completed graduate studies that was paid for 80% by tuition reimbursement, though I took out some additional loans. All in all, I have about $60k in loans. About 50% of it originated as subsidized loans. Whenever they are set to "in-school deferment" they have subsidized interest, again. I thought that the previous rules for this were for up to 2 years... but my graduate school was just over two years... and that have been completed for over a year now and I am taking a course right now just because I want to... and it is in deferment again.

So, strategy... take a course here and there to get these subsidized loans back in deferment and keep making my payments but stick all of the money in the unsubsidized loans. That is the first item. Now, this course I am taking is out of pocket and not cheap... so it really isn't a good example, but community colleges offer courses that are much cheaper. Alternatively or correspondingly, one could use employer provided tuition reimbursement to pay for the course, then it is free (beyond any "repayment" commitment and time in school). For specific industry certifications, I have to do continuing education anyhow, and this makes that very easy for me.

This got me thinking, though, there are plenty of means for "students" to save money. How could one extrapolate this for maximum savings. So, here is my list so far:

1. In-school deferment of subsidized loans ($~200/month)
2. Amazon Prime Student with Upgrade to Full Prime (now $50/year or ~$4/month)
3. Mobile service discounts (if you don't have an employer discount... many universities have discounts ranging from 15-22%... savings, varies significantly)
4. Gym membership discounts - my local school district has a fitness facility that is open to the public (detached from the schools). Membership is $500/year for non-residents, $200/year for residents, and $80/year for adult students ($30/year for minor students) (savings varies based on what is available for you, $10/month for me).
5. Software discounts (varies) Many schools have discount programs available for students. Also, you may want to check with your employer for "home use" programs. For instance, my employer's home use program with Microsoft allows me to use MS Office for $10 on up to two home computers.
6. Various students discounts at restaurants
7. Special vehicle financing options - We are trading in our Chevy Traverse (at 0%) for a Volkswagen Passat TDI. Volkswagen Group (VW, Audi, Porsche) offers a grad program for that within six months of graduate or two years following graduation best terms financing plus first payment paid on vehicles. We will be getting 0.9%, but the gasoline models would get 0%. ~$500 for the first payment... $130/month (>$1500/year) in fuel savings over the Traverse after accounting for the slightly increased payment. Many automakers have similar programs.
8. Covered continuing education - many licensed professions and various certifications require some form of continuing education. Sometimes there are free options... sometimes they are a pain. Any schooling gets me a CPE per hour of weekly classroom work... for 3 cr hr course gets me 36 hours for the semester. I need 20CPE/year of specific and 40CPE/year overall... this will obviously vary greatly for folks
9. If you are paying out of pocket... you can do the lifetime learning credit on your taxes to "reduce" the expense of the course.
10. Ancestry.com - I think that some universities offer free access to students (mine does)... $20/month... but i would pay for it all of the time anyhow, so not really a savings.

What other options are out there? Things that you normally wouldn't use but the free/discounted rate makes it affordable for you? Things you already use that would become less expensive?
Help Me Refi
Added on : Friday March 14th 2014 02:00:04 PM
g: 0 Posted By: FutureBillionaire
Views: 176 Replies: 2 A long time ago, in a galaxy far, far away:

I signed up for a terrible mortgage during the housing bubble. I have a 1st and 2nd mortgage that was sold to me as an 80/20 loan. I wholeheartedly acknowledge that I was a bumbling fool when I purchased my house.

Fast forward a few years, and Bank of America has sold my first mortgage to Specialized Loan Servicing. They still have my second mortgage.

My question is, what is the best way of refinancing these loans? My credit scores were between 660 and 680 when I bought my house. Now, I'm in the 760-780 range. The rate on my second mortgage is much higher. Although my awareness of credit has improved, I'm still a noob when it comes to the housing market. Any advice or help is much appreciated. I bank with two credit unions, a few online banks, and a couple of national banks. I think I have established relationships that should help me get a good product somewhere.
Personal Finance Deals
Jaguar lease help for a newbie
Added on : Friday March 14th 2014 12:00:06 PM
g: 0 Posted By: CatchEmAll
Views: 7 Replies: 0 Hey guys,
I've been a long time lurker on FW and in need of help with new lease I'm looking into.
I'm thinking of trading in my audi q5 for a new Jaguar F-type convertible.
The dealership is agreeing to payoff the loan amount on the audi around 23k.

They're quoting me $789 per month on a 39 month lease, 10k miles per year with 7104 down at signing (with tax, title, ect)
MSRP 75000
cap cost - 71800
residual 42775
money factor - somewhere near '0..0016' is what the sales person said

I reviewed couple threads and a good post by mikef07 and ran the numbers.
Overall, it seems like a decent deal for a latest model jaguar.

I was hoping to have some feedback about the lease before I call the salesman tomorrow
in case I need to negotiate something more.

Appreciate the help!

Personal Finance Deals
Savings/Retirement checkup
Added on : Friday March 14th 2014 07:00:10 AM
g: 0 Posted By: gr99gt
Views: 115 Replies: 0 I'm looking for some constructive criticism or feedback regarding my current savings/retirement state. I've been on FW for years, but did create a new ID for this post. My apologies, but my existing username makes it pretty easy to identify me once I post the info in this thread.

31 years old, married with 2 kids.
HHI = $155k
Mortgage of ~270k at 3.625% (30 year fixed) with home value about $375k.
Wife has student loans totaling about $30k. $10k at 1.625%, and 20k at3.5%. Both fixed.
I own my car outright, hers is a lease ~500/month.
No other debts.

Current state:
My 401k = ~120k
Roth IRA recently started = ~3k. Contributing$200/month.
529's for kids = $10k. Contributing $200/month
Cash savings = $15k

I put 10% into 401k, plus get additional 4% from employer match.
I amalso vested in apension plan at my work.
Wife is a teacher, so will get pension from state.

I guess my general question, given current balances combined with pensions,how does 10+4% into 401k and 200/month into the Roth look? We're currently putting the rest of our extra monthly income (about $1k/month) into a savings account to go towards an addition on our home. Debating if we shoulddirect more or less money into the additionfund in the near term.

Personal Finance Deals
g: 0 Posted By: bighitter
Views: 12 Replies: 0 The background: A friend of a co-worker needs a short term (12 month) $100,000 second trust deed loan that he is willing to secure with his primary residence in California. His home, which he has owned for several years, is conservatively worth $1.3 million. His existing first mortgage balance is $525,000. He has been told that he has insufficient income to meet bank's new lending requirements under the Consumer Financial Protection Bureau regulations (described: here) that requires the lender to verify the consumer's ability to repay the loan.

If we, as a private party, were willing to make the loan (at a rate of 7%), is there any exemption that could get around the onerous lender penalties described in the Consumer Financial Protection act? I've been looking online but so far can't find an exemption that would make the loan safe from a private party lender's perspective. We are familiar with the borrower and the property. We wouldn't hesitate to make the loan except for the penalties described in the linked article.

Any information would be appreciated.
Real Estate Deals
g: 0 Posted By: miniaustinliu
Views: 70 Replies: 0 Hi everyone!

I just applied for a re-fi on our house at this rate with my broker... they have the lowest rates anywhere that I have shopped on the shorter end of the loan spectrum. We personally just did a cash out and is using the cash on another investment property. Credit needs to be good or else there is a .15% bump on top. He is in the Southern California region but can do nationwide loans for clients.

Penfed's loan is STILL higher than this and only approves 80% LTV, whereas you can only put 10% down with MS.


You cannot sign up ONLINE for this - reach out to a local broker or inquire with me for mine.

You do NOT need a brokerage account with Morgan Stanley either - and require NO bringing in of investment assets. This is a completely different arm of their firm that does LOANS only.

This was my breakdown of costs:

MS Processing fee: $815
Appraisal: $600
Escrow: $475
Title: $300
Notary: $150
Recording: $150
Wire: $15
Courier: $30

I didn't write a check for the costs - I rolled it all into the equity of my condo.
Personal Finance Deals
Judgement appearing on credit history
Added on : Monday March 10th 2014 09:00:09 AM
g: -1 Posted By: CheapBustard
Views: 159 Replies: 1 Hi all. Newish landlord here. My first ever tenant took me to conciliation court over security deposit after I had not extended the lease . She did a lot of damage to the property so we did not want to re-sign. I was pretty confident that I made my case and was surprised when the judge played it safe and split the difference, awarding her $500. Knowing what I know now I should have appealed. At the time however, I just wanted to be done with the whole thing and did not want to waste another day in court. The way I read the court's letter I thought I had 20 days to appeal, after which the judgement is effective. So I paid the judgement within a week after the 20-day period. Now it shows up on my credit report and TransUnion score dropped by about 80 points (as seen via CreditKarma). I don't see anything saying "satisfied". I read that the judgement will stay on the credit report for 7 years. Is the score supposed to go back up if/when it gets updated as "satisfied"? Should I try to get credit bureaus update the record with "satisfied" or should I try to remove the judgment altogether asking for verification? I've been watching my credit score, pacing my CC applications and rental properties loans so this is definitely a big blow. Any and all advice would be highly appreciated.
Personal Finance Deals
What type of tenants have you had the best luck with?
Added on : Monday March 10th 2014 07:00:09 AM
g: 1 Posted By: tedteddy
Views: 121 Replies: 2 I this thread we will discuss different types of tenants who tend to be better than average.

I personally have had the best luck with tenants in medical-type graduate programs. Dental/Pharmacy/Med grad students have a VERY reliable income from loans. They seem to study so much that they don't have time to party or mess up your place. They also tend to be clean people in general.

Who have you had the best luck with?
Real Estate Deals
new to heloc. suggestions needed
Added on : Sunday March 09th 2014 06:00:04 PM
g: 0 Posted By: megaawells
Views: 2 Replies: 0 Hello i just found this great site !

Here is my current situation as im looking for suggestions.

I make about 72 k base with some overtime. Married 5 kids.

Current mortgage is 195k with the house appraising for 300k.

We are looking to add a pool and complete our backyard.

I have been looking at helocs as my wife makes commission on her side job and could throw large sums 3 to 4 k at a time at the loan.

We would also like to make some renovations in the kitchen but are not in a hurry to do such.

What should i be looking at in terms of finding the right heloc for me.

All credit cards paid off and only debt is wife school loans mortgage and two vehicles in my name soley.

We have a credit union througj her work which shows prime plus an interest % of 5 which i beleive would make the rate 8.25.

Where else should i look?

I beleive at 80 ltv i could take out 45000 but i would not like to use that in full.

Discussion Deals
2% Balance Transfer Fees for Existing Cardmembers
Added on : Sunday March 09th 2014 11:00:09 AM
g: 0 Posted By: kay11
Views: 72 Replies: 0 I think this is my first new thread here.
Many of us carry a balance and do not want to open a new account just for a Balance Transfer and get dinged on credit score.

I have noticed many card issuers have gone beyond the proverbial 3% BT Fee (1 year or more)for existing cardmembers.
I am happy to notice that the whole industry is moving towards 2% or less. There is a chase for receivables.
From newpapers I read, CC Debt has gone from $975B to $622B. Big banks have seen pathetic loan growth, big dip down in receivables. All of this is an effort to prop it up.
Stocks have gone up a lot, but revenues are a struggle as people are not borrowing more.

Some of these might be targeted or just applied generally to all good standing accounts. If you have a low credit score you might not see them.
I will keep updating the list as I see good offers.

Bank of America World Mastercard - 2% Fee - 0% until Jun 2015 (15 Months)
Chase Freedom - 2% Fee - 0% until Jun 2015 (15 Months)
Capital One Venture- 2% Fee - 0% for 12 Months

Citi Dividend - No go, they would not match Chase or BofA offer.
US Bank, Discover IT, Barclays- 3% Fee
Credit Deals
Home Owner's Insurance Options
Added on : Saturday March 08th 2014 03:00:08 AM
g: 0 Posted By: jimates
Views: 81 Replies: 0 My sister talked me into this deal.She took out a bridge loan to buy a second house in another community. I am buying her old house in a rent to own agreement.
Her insurance company said changing the status of the property to rental would increase the insurance rate from <$400 to >$800. Reducing the coverage by >50% would only save $182 a year so not a good option. I could get my own insurance but that would not satisfy her loan requirements.

Any viable options out there for insurance coverage at great rates.

State of PA
Changed from Allstate to Erie for super savings after Katrina (all major carriers had significant increases).
House appraised at $77k
Insurance coverage of $175k (replacement costs)
Reducing to $80k would only save $182 a year
Real Estate Deals
Float Money - new credit service?
Added on : Saturday March 08th 2014 02:00:03 AM
g: 0 Posted By: nomadwfs
Views: 25 Replies: 0 Has anyone tried out this new service?

the website said: A new way to borrow that puts you first.

Float is an alternative to the traditional consumer loan system. We are not a bank. We are a new type of company that is both a lender and a shopping club. We can make loans without interest or fees because we get paid by the stores when you shop. Our mission is simple - to improve the financial health of all of our members.

It looks to me like the site makes money by encouraging its users to buy gift cards to vendors which it can probably do in volume at a discount, and passes a portion of the profit on to the users in the form of a variable credit line tied to the amount of gift cards you buy per month.

It looks to be that their Target market is people with little credit or bad credit as a means to build a credit file. Based on some quick calculations of the amount of credit you can obtain using the service, it seems quite paltry compared to credit lines offered by big banks on credit cards. For that reason, it may not be of particular interest to the churning/MS community, but it looks like the credit available functions as a bank line of credit, allowing you to ACH it directly into your bank account for any purpose at no fee, as opposed to the methods/fees involved in extracting funds from a credit cardinto a bank account. That is an interesting feature.

Any thoughts?
Personal Finance Deals
Blowing the whistle on your employer for fun and profit
Added on : Friday March 07th 2014 11:00:08 AM
g: 0 Posted By: tuphat
Views: 70 Replies: 0 from Politico --

Keith Edwards, a former JPMorgan Chase employee, will be paid nearly $63.9 million for tipping off federal investigators about problems with how the bank was writing government-insured home loans, according to a court filingtoday.

The case led to a $614 million settlement between JPMorgan and federal prosecutors.

Evidence showed JPMorgan knew some loans it wrote that were insured by the Federal Housing Administration and the Department of Veterans' Affairs did not meet agency guidelines. The bank also admitted to ignoring internal reviews that flagged issues with the mortgages.

The payment to Edwards is a share of the settlement amounts due to the government agencies. Edwards receives roughly $56.4 million of the $564.6 million due to FHA, and gets another $7.4 million from the $49.4 million due to the VA loan program, according to the filing.

Edwards had originally sued the bank for defrauding taxpayers, and the Justice Department joined his case.
Personal Finance Deals
$51k in bank, 24 years young... time to buy my own pad?
Added on : Thursday March 06th 2014 04:00:10 PM
g: 0 Posted By: tol835
Views: 209 Replies: 6 I have been racking my brain about the idea of buying my own place... please read on if you are also pondering this or have something to contribute!

I live in Chester County in Pennsylvania. I have 51k in savings, 7k in other fairly liquid assets (Also it is stuff I could part with) not including my car, and 12.5k in my 401k (current total contribution is 10%). My monthly take home is $3,106. I am currently paying $600 a month for a small room in a nice 2,000 sq. ft. three story townhouse worth about $260,000 with 2 other roommates that I tolerate but don't enjoy living with all that much. The one guy owns the place. EVERYTHING is included for the $600 and I am NOT in any type of contract. The house is 2 miles from the office which is the biggest benefit of living here. I have no other financial obligations besides my car and renter's insurance.I have a 2 year specialized technology degree and have been working full time in my career for 4 years at the same company.

I have looked at a few houses, and am considering purchasing a townhouse for around 160k, putting 20% down making the loan $128,000. In addition to annual property taxes of around 2-3k, I would likely have a monthly HOA fee of $125-$215.

I am very independent and like being in control and living with 2 roommates is starting to get very taxing on me. If I get lonely at my own place (Im not sure if this would happen or not) I could always rent out a room and also pay the mortgage off faster. Also, living with only one other person in the house who I can choose myself shouldnt be too bad if I vet and choose the right person.

Having said all that the obviously other choice is to rent a one (maybe two) bedroom studio apartment for around $800-$1,000 a month plus utilities so maybe $1,200ish. Thats double what Im paying now but would likely still be within 5-7 miles of where I work. The other big downside to this choice would be that I would be in a contract, so purchasing a house wouldnt be as easy when the time came. However, I would try to get a lease with an out provided I give the landlord a 3 month or so heads up.

Thoughts from the older and wiser would be much appreciated!
Real Estate Deals
Select Christian DVDs - 49 Cents @ Christianbook.com
Added on : Wednesday March 05th 2014 03:00:04 PM
g: 1 Posted By: mmax
Views: 172 Replies: 0 Really cheap DVDs up to 98% off from Christianbook.com, all the ones I listed are only 49 Cents! Shipping for me added $3.99 but I am looking for a free shipping code, will post it if I find it.

The Da Vinci Delusion -Was $25.00

The Public Life of Sissy Pike: New Girl in Town, DVD - Was $14.99

William Sloan Coffin: An American Prophet on DVD - Was $15.00

An Intimate Interview With Shaunti and Jeff Feldhahn - Was $9.99
DVD Deals
g: 0 Posted By: LeonWhite38
Views: 221 Replies: 6 Im asking this for my mom so Ill try to explain her situation the best that I can. My mother owns her home outright, but she lets my brother and his family live there rent free while her and her husband rent a small basement apartment in town. I know thats extremely ignorant, but it is what it is. With that being said, shes about $20,000-$25,000 in debt right now and behind on her rent as well. Garnishments from a ghetto loan company called Springleaf Financial nearly wipes out each of her paychecks which just makes this whole mess that much harder on her.

She talked to a bankruptcy attorney and he told her that if she filed a chapter 7 she would lose her home as it would be sold to pay off her debts. She asked if she could put the home in one of her kids name and then file, but he said no as the bankruptcy court sees that as fraud and would instantly deny the bankruptcy. Her other option the attorney said would be to file under chapter 13 which is where her debt would be cut in half and she would be put on a payment plan through the court to pay back the rest of the debt.

The plus side obviously being that she would keep her home going this route. She asked me what I thought about her taking out a home equity lone or line of credit and I told her that Ive always heard that you NEVER EVER borrow money against your home for ANY REASON if its paid off. What do you guys think? To me going the chapter 13 route makes the most sense for her, but I wanted to get your opinions first. She's really hurting here folks and the rest of my family (I have 2 brothers and 2 sisters) really couldn't give a damn.
Personal Finance Deals
g: 0 Posted By: stopsignhank
Views: 239 Replies: 5 http://www.cbsnews.com/news/nj-teen-sues-parents-claims-they-kic...
MORRIS PLAINS, N.J. -- A bitter family battle was playing out in a New Jersey courtroom Monday, as an 18-year-old student has sued her parents claiming they kicked her out and demanded she pay for her own college education.
As CBS New York's Christine Sloan reported,Rachel Canning's parents could not believe it."We're being sued by our child," said Sean Canning, a former police chief in Lincoln Park, N.J.

"I'm dumbfounded, so is my wife, so are my other daughters.

"Rachel Canning is a cheerleader and an honor student at Morris Catholic High School in nearby Denville.In court papers, she alleged her parents abandoned her when she turned 18 and have now refused to pay for her to go to college - even though she has received acceptance letters from several universities.

But her father told a different story."I know Rachel is a) a good kid, b) an incredibly rebellious teen, and she's getting some terrible information," Sean Canning said.He claimed Rachel ran away from home in November because she did not want to follow house rules."Living in our house, there's rules," he said. "There's minor chores. There's curfews - when I say curfew, it's usually after 11 o'clock at night."

Rachel did not want to be interviewed Monday.

She is staying with the family of her best friend - which includes attorney John Inglesino.Inglesino is funding the lawsuit, telling CBS New York it is the only way the bright and focused teen will be able to go to a college appropriate for her to become a biomedical engineer.

Rachel, who has a $20,000 scholarship, said the University of Vermont is her first choice.

But Sean Canning said he is not refusing to pay for her college education."I reject the whole question on that -- the whole premise," he said. "We have a college fund that's available to her - there's no doubt about that.

But it's the equivalent ... of going shopping at a high-end store and sending somebody the bill."

Rachel has said she did not run away, but was given the option of dumping her boyfriend or getting out.

"Me and my wife are distraught," Sean Canning said.Both sides will be in court Tuesday.

Rachel Canning wants the court not to emancipate her, because under the law, a parent has an obligation to support any child who cannot stand on his or her own financially.Rachel also said every piece of financial paperwork she fills out asks her that question and shows she clearly doesn't have the means to support herself.

Inglesino said he has spent more than $12,000 on the lawsuit because he wants Rachel to have a great future.Sean Canning said Inglesino is just butting in where he shouldn't and is influencing Rachel inappropriately.
Discussion Deals
Real Estate: Selling current home and buying another?
Added on : Monday March 03rd 2014 09:00:08 AM
g: 0 Posted By: mailvips
Views: 38 Replies: 0 Here's our scenario:

We live in a decent townhome and are thinking about living in a single family house with yard etc in same area (South Bay in SFO Bay Area).
The houses which we like (went to couple of open houses) and the area where we want to live are pretty expensive (1.0 to 1.4m) and hence the dilemma.
The current home has a 400K mortgage at 3.5% 30 years fixed and
Zillow's Zestimate of it is about 1m.
We can do20-25% of down payment for the future home
Renting may not work as it will not be cash flow positive and hence the taxdepreciation will be passive loss and will not offset my active/portfolio income. Due to our income levels wecan not avail the 25K deduction either
Although we can afford the jumbo mortgage for a loan of 1m, we would generally like to keep that to a lower amount (sounds like oxymoron)
Other info:Our credit scores are >800 and I have a IT consulting business where both me and my wife are employed

So the questions are:

Am I missing any ways to keep the current home and its low rate and pay down more towards new one?
What would be the FW way to move to what we think (which is totally subjective evaluation) to a better home?
Also isthis a good time to do this move from a real estate market perspective where valuations are all time high in this area
How good are Zillow Zestimates?
How does one go about buying and selling at the same time?


Personal Finance Deals
Sallie Mae overcharge
Added on : Sunday March 02nd 2014 06:00:09 PM
g: 0 Posted By: Genetics
Views: 60 Replies: 0 I have been managing my wife's student loans and was able to get a loan on her car title for a much lower fixed rate than her Sallie Mae variable private loans (she still has loans through the department of education). Last month I payed off most of her private loans, but left a small balance because of the accruing interest until they got the check. I made the last payment through the website and distributed the money across the loans. Something weird happened and some accounts went negative while others had a balance, I called and they assured me it would be worked out within a month and the loans were paid. On 2/21/14 Sallie Mae took more money from my wife's checking account as part of the auto debit. I called, they apologized said it was their mistake but could not fix it until my wife called in and even then we would have to wait a month to get her money back or she would have to send them a bank statement showing the withdrawal (even though it is credited and all accounts are negative on their site). I mentioned to her that I made them aware of the situation and my wife will not be calling it was their mistake and they are aware that they have our money, and I mentioned that we would charge interest on the money that they took from us... I also wrote them a nice note on their facebook page..

question is... I know we will probably not get that interest, but I'm pretty ticked off at their practices not to mention how they never forgot to charge her interest... Should I pursue this to make a point or just let it go?

as of today we still do not have the money back in our account.
Personal Finance Deals
Getting a Loan
Added on : Sunday March 02nd 2014 01:00:08 PM
g: 0 Posted By: Newyorker1905
Views: 2 Replies: 0 Hi guys.

I am an expat living in USA. I would like to buy a house in my home country so that my father can live in it while he is alive. God forbid, something happens to him, I will rent it out.

That said, I require around 100K USD. I am not able to get a mortgage from a US Bank as they can't foreclose the property in my home country. At the same time, I don't want to get a loan from my home country because the rates are insanely high (20% annual rate for 10 years).

Is there a way to secure this amount from a US Financial institution as a regular loan?

I am working at a Consumer Goods company which is in Fortune 200 globally. I am also a US citizen and my credit score at the moment is 788.

After all my expenses, I can comfortably pay back the loan if the 10 year interest rate is around 8% annually. Any suggestions?

Personal Finance Deals
loan against car
Added on : Saturday March 01st 2014 02:00:07 AM
g: -2 Posted By: stevemadden
Views: 59 Replies: 1 Any person who has bad credit in the market have to face many problems for taking loans from banks or other money lending financial companies but he can get logbook loans very easily.
Personal Finance Deals
LightStream Loan - Unsecured AnythingLoan
Added on : Friday February 28th 2014 07:00:08 AM
g: 0 Posted By: Rewdog
Views: 96 Replies: 0 They are claiming an Unsecured AnythingLoan which has different rates based on the loan purpose. As low as 1.99% for a new auto, 4.99% for home improvement, etc; generally things that are secured loans. Your credit needs to be excellent, otherwise they will offer you a secured product instead.


Anyone have any experience with these guys?
General Economics Deals
Student loans .25% interest rate reduction with Auto Debit
Added on : Friday February 28th 2014 07:00:08 AM
g: 0 Posted By: stils
Views: 140 Replies: 5 I had a question I was hoping someone here could help with. I have $250k in student loans at all different interest rates (about half at 4.7%, a quarter at 6.8%, and some at around 8%). I see that if I do the monthly automatic debit my interest rate will be dropped by .25%. I prefer sending the payments in manually but if there is a substantial savings then I can definitely tough it out and do the auto-debit. I am not sure how to calculate the amount of money this will save me. Any ideas?
I searched for other threads but found one from 3-4 years ago that I couldn't reply to.
Personal Finance Deals
OFFER OVER Free app for android - 10bii Financial Calculator
Added on : Friday February 28th 2014 01:00:04 AM
g: 4 Posted By: remick
Views: 487 Replies: 1 http://www.amazon.com/gp/product/B004W41SQK

Finally a Financial Calculator for everyone! Whether you are a seasoned investor or you just have questions about paying off your credit card, refinancing your home, or planning your 401(k) contributions, the 10bii Financial Calculator has the answers to YOUR financial questions!

Users love this app! Read what a couple of them have said:

"Amazing app! Wonderful for calculating investments and other financial decisions. Great response on suggestions. True In A Day Development."

"Hands down best financial calculator. No learning curve, works and looks just like the HP but better. Nexus One."

At times, users will post reviews saying the calculations are wrong, but please understand the calculations ARE CORRECT. The issue comes down to proper use of the calculator and almost always has to do with the Payments per Year setting. If you believe you are having any issues with your calculations, email us and we'll generally reply within the hour and can help resolve the issue. MONEY BACK GUARANTEE!

The 10bii Financial Calculator is a versatile and powerful financial calculator which features more than 105 different functions for financial analysis, business, statistics, and general mathematics. Modeled after the extremely popular 10bII Financial Calculator by Hewlett Packard, the 10bii Financial Calculator combines precise mathematics, intuitive display, and ease-of-use in one compact package. It allows you to easily calculate loan payments, interest rates, amortization, time value of money, investment value, and more using a combination of powerful and intuitive equation-writing functionality and helpful worksheets.

By expanding on HP's traditional presentation, the 10bii Financial Calculator allows quick and intuitive building and visualization of TVM (Time Value of Money) calculations and Uneven Cash Flow scenarios and lets you type in whole equations for easy review and one-touch evaluation.

With the 10bii Financial Calculator, you can:

Calculate Time Value of Money (Length of Term, Present Value, Nominal Interest, Loan Payments, Future Value) and see the cash flow diagram produced for you via the Graph TVM key. Values for N, PV, I, PMT, and FV are displayed right above their keys for easy reference.

Easily enter Uneven Cash Flows, including rapid calculation of Net Present Value and Internal Rate of Return. A dedicated interface makes adding, editing, deleting, and reordering uneven cash flows a breeze.

Switch between Nominal and Effective interest rates with the simple touch of a button.

Enter and analyze statistical data points. Includes standard calculations such as standard deviation, mean, and linear regression forecasting.

Never has using a financial calculator been so easy or intuitive. The 10bii Financial Calculator is truly powerful enough for the professional but accessible enough for everyone. It is an ideal tool for teaching the power of compounding interest, analyzing potential deals or business ventures, or just doing math problems, and sharing the results of your work with others.
Free Apps Deals
Lenders who are Self-Employment Friendly
Added on : Thursday February 27th 2014 07:00:11 PM
g: 0 Posted By: tembenite
Views: 99 Replies: 0 I started my own business in October and its going really well, but I'd like to purchase a house.

Based on my research, most lenders require 2 years of self-employment history before they allow you to borrow. I of course do not have this.

I have found one mortgage broker who states that they only require 1 year of employment history, if you're still in the same field as you were before you were self-employed (Which I am).In talking with him, he indicated that "1-year" means 1 tax year, not one full annual year, so since I was in business Oct-Dec 2013 I've been in business "one year". As a result I might have found one lender that might loan me something.

However, I was curious if anyone else on Fatwallet had experience with different lenders that were self-employment friendly, or "maybe" if there are any more "stated income" loans still out there.
Real Estate Deals
Which debt to pay down first?
Added on : Thursday February 27th 2014 01:00:12 PM
g: 0 Posted By: Al3xK
Views: 190 Replies: 6 I have two debts that are screwing me now that I need to address. I'm paying PMI on my home and 9.5% interest on an unsecured pool loan. I'm thinking it makes more sense to try and remove PMI. I would feel comfortable throwing $30k at something. Here are the numbers:

Conventional home loan:

$327,000 purchase price (4/13), 5% down, original loan value $310,650 @ 3.625% interest rate
Current remaining balance $305,085
Monthly PMI: $173.45
Appraisal fee $385
I estimate the value at $370k.
PMI is scheduled to be removed at 78% LTV of the $327k purchase, so 10/21 when the mortgage is roughly $255k. I want it gone long before that

Pool loan:

$30,000 @ 9.5% for 60 months started 7/25/13.
Remaining balance $23,414, pay off is $24,322
I made one-time $5k payment to knock it down a bit

I'm thinking I pay the $385 to do the appraisal, and if the home comes in at $360k for example. I'd need to pay $17k to get to 288k and remove PMI...BUT I was thinking perhaps pay the full $30k and get it to $275k owed on a $360k property, and see if I could do a HELOC to pay the pool down? Or would it make more sense to just pay the minimum to remove PMI and the remainder to the pool loan?

For those curious, the reason I took on PMI and a 9.5% interest loan is because I was able to get 2-3 roommates bringing in $1250-1850 cash off the books...so it covered those expenses easily.
Personal Finance Deals
Free app for android - 10bii Financial Calculator
Added on : Thursday February 27th 2014 01:00:08 PM
g: 0 Posted By: remick
Views: 57 Replies: 0 http://www.amazon.com/gp/product/B004W41SQK

Finally a Financial Calculator for everyone! Whether you are a seasoned investor or you just have questions about paying off your credit card, refinancing your home, or planning your 401(k) contributions, the 10bii Financial Calculator has the answers to YOUR financial questions!

Users love this app! Read what a couple of them have said:

"Amazing app! Wonderful for calculating investments and other financial decisions. Great response on suggestions. True In A Day Development."

"Hands down best financial calculator. No learning curve, works and looks just like the HP but better. Nexus One."

At times, users will post reviews saying the calculations are wrong, but please understand the calculations ARE CORRECT. The issue comes down to proper use of the calculator and almost always has to do with the Payments per Year setting. If you believe you are having any issues with your calculations, email us and we'll generally reply within the hour and can help resolve the issue. MONEY BACK GUARANTEE!

The 10bii Financial Calculator is a versatile and powerful financial calculator which features more than 105 different functions for financial analysis, business, statistics, and general mathematics. Modeled after the extremely popular 10bII Financial Calculator by Hewlett Packard, the 10bii Financial Calculator combines precise mathematics, intuitive display, and ease-of-use in one compact package. It allows you to easily calculate loan payments, interest rates, amortization, time value of money, investment value, and more using a combination of powerful and intuitive equation-writing functionality and helpful worksheets.

By expanding on HP's traditional presentation, the 10bii Financial Calculator allows quick and intuitive building and visualization of TVM (Time Value of Money) calculations and Uneven Cash Flow scenarios and lets you type in whole equations for easy review and one-touch evaluation.

With the 10bii Financial Calculator, you can:

Calculate Time Value of Money (Length of Term, Present Value, Nominal Interest, Loan Payments, Future Value) and see the cash flow diagram produced for you via the Graph TVM key. Values for N, PV, I, PMT, and FV are displayed right above their keys for easy reference.

Easily enter Uneven Cash Flows, including rapid calculation of Net Present Value and Internal Rate of Return. A dedicated interface makes adding, editing, deleting, and reordering uneven cash flows a breeze.

Switch between Nominal and Effective interest rates with the simple touch of a button.

Enter and analyze statistical data points. Includes standard calculations such as standard deviation, mean, and linear regression forecasting.

Never has using a financial calculator been so easy or intuitive. The 10bii Financial Calculator is truly powerful enough for the professional but accessible enough for everyone. It is an ideal tool for teaching the power of compounding interest, analyzing potential deals or business ventures, or just doing math problems, and sharing the results of your work with others.
Free Apps Deals
g: 0 Posted By: swampwiz
Views: 0 Replies: 0 I have a number of accounts @ TD Ameritrade, so as to do a carefully structured set of IRA disributions & rollovers (i.e., to act as de facto loan.) It seems that a mutual fund I am in, from the Rydex family, a family whose funds are NO TRANSACTION FEE, NO LOAD, has gone through a split, and because of it, I have been charged a $38 fee in each account, for a total of $380!

It seems that such fund "reorganization" should be considered at the very most simply an exchange from the old fund to the new fund - something that has no fee associated with it.

Is this really just a niggling charge that TD Ameritrade hopes will just fly under the radar, springing a "gotcha" moment for the customer? I feel like I've been ripped off! I am so angry!
need an advice
Added on : Thursday February 27th 2014 08:00:12 AM
g: 0 Posted By: rmishka07
Views: 19 Replies: 0 We'd like to do some renovations in our house, but do not have the cash. I'd estimate about 30k worth. should we refinance the house with cash out. we currently have 15 year fixed 4.25 interest or get a line of credit or any other loans? I don't need all the money up front since the contractor want's to get paid weekly.

need to make a decision ASAP.

thanks in advance.
Question about American Opportunity Tax Credit (finance related right?)
Added on : Wednesday February 26th 2014 09:00:10 AM
g: 0 Posted By: beardeus
Views: 112 Replies: 2 Hi,
I actually tried to register at some financial aid/ college forums but both forums I tried aren't allowing me to apply. Something isn't working correctly.

Anyways here is my scenario. My wife finished school Spring 2013. The school billed her for those expenses December 2012 but it is clear she had tuition expense for 2013 but the college is not stating that she did. I know, from the horses mouth regarding ANOTHER scenario (IRS), that schools don't always report tuition expenses on the 1098 form correctly. The tuition expense were paid through student loans.

My question, is my wife's schooling in 2013 eligible for the American Opportunity Tax Credit? She meets all the other requirements.

Thank you so very much!
Tax Deals
Putting INFINITE Money Into Roth Accounts For Fun And Profit
Added on : Wednesday February 26th 2014 04:00:10 AM
g: 0 Posted By: robronson
Views: 29 Replies: 0 ETrade offers Individual (Solo) 401ks in both Traditional and Roth flavors. The terms of the 401k are in this PDF below:


Page 11 lists the rules for a loan. The employer (which is yourself) gets to determine the interest rate for the loan. Which means you can squeeze an infinite amount of money into your Roth 401k. For the people who's head's didn't explode when they read the underlined sentence, I'll explain:

Step 1) Set a ridiculously high interest rate on the 401k Loan.
Step 2) Allow the 401k plan to offer Roth 401k Loans with no limitations.
Step 3) Take out a Roth loan
Step 4) Pay back the Roth Loan plus the exorbitantly high interest rate
Step 5) All of the interest is paid back into your 401k, which is yours to keep

Which one of us will be first to test out the string value limitations of the interest rate in ETrade's coding system? Perhaps as a design limitation in the coding they limit the interest rate to 99% or 999% We'll need to get that fixed.

Investing Deals
Solo 401k with no business income
Added on : Tuesday February 25th 2014 01:00:06 PM
g: 0 Posted By: xxjt
Views: 110 Replies: 2 Hi there,

Is it possible to open a solo 401k with no business income? (In order roll over a number of old IRA's into.)

I would like to do this for two reasons:

1. Potential for 401k loan
2. Potential for backdoor Roth
3. To clean up many old IRA's

Is this possible? Or should I buy and sell some stuff to generate a nominal income?

In the backdoor roth thread it is implied that some people have done this - but I would like to get some more specifics. Fidelity or E*Trade both seem to be okay for roll over without contribution.

Investing Deals
Q: re: mortgage service transfer and account age
Added on : Tuesday February 25th 2014 08:00:10 AM
g: 0 Posted By: moneypyts
Views: 98 Replies: 0 I have a mortgage that originated in July, 2005. In July 2012 the loan servicer, Aurora Bank, was purchased by Nationstar, and I made subsequent payments to Nationstar rather than Aurora.

Initially, Nationstar reported the "date opened" as July 2005, but in Jan, 2014 they changed their reporting to all 3 credit bureaus and reported the "date opened" as July 2012. This erased 6 years of credit history from my reports. It seems to me that there is no justification for this, as Nationstar purchased the assets of Aurora, which included my loan, but in no way did their transaction affect the loan itself. (edited)

Does anyone know if there is an "industry standard" for loans transferring? Other loans I've had in the past always reported the original "date opened" after transferring.

And, when I call Nationstar to ask if they can re-age the account, what department do I ask for?

Thanks for any help or suggestions,
Personal Finance Deals
Comparing loan APR to Investment returns: Have to use CAGR?
Added on : Saturday February 22nd 2014 03:00:04 AM
g: 0 Posted By: RunToday
Views: 39 Replies: 0 The total US stock market gets about 8-10% average return historically, but the CAGR is more like 5-6%. Does CAGR better reflect the long-term opposite of loan APR?
Investing Deals
I am terrible at math and projections: should I pay my rental or invest?
Added on : Friday February 21st 2014 01:00:10 PM
g: 0 Posted By: maxandsam
Views: 176 Replies: 1 I have about 100k extra sitting around doing nothing except losing value b/c interest rates are low. I am going to withdraw this to pay off a loan or invest. However I am terrible at math and do not know which scenario is better.

Should I:

1. pay down the note of a rental house that I own and owe 190k on. 30 year fixed at 3.625%. Rentals during the year cover my entire mortgage. (I owe more on my primary residency, but due to laws, it would be the hardest thing for me to lose so that payment is last).

2. invest the money into mutual funds. I have about 400k in mutual funds already and my goal is to get to 1 million by age 40. I'm 33 rt now. That's my goal b/c firecalc.com says at 1 million, by retirement age, I should have plenty to do nothing if I want.

If I add more to funds and get average market return, due to compounding and interest and growth, will I get more value out of investing my 100k or will paying down the rental house note (and the interest saved with prepayment) exceed investing? Let's say I think 10 years out, will my 100k investing, grow and far exceed the savings of prepayment of loan? Thanks to all you math wizzes. and PS, I could spend it on hookers and blow and crown vics, but I like German cars and don't want the herps nor a bloody nose so no H&B.
Personal Finance Deals
Take loan for credit score purposes
Added on : Friday February 21st 2014 08:00:12 AM
g: -1 Posted By: Birdman0494
Views: 142 Replies: 3 Hi everyone I'm new to fw been reading the forums for a while.
my fico has ranged from 760- 705 due to my latest AOR

I've used discover, credit karma, credit sesame to track my score. I have about 20k plus in cl from
CCs. All my reports say not having installment loans are hurting my credit due to a lack of diversity.
All ccs are paid in full

what do you guys think of taking out and paying a small loan just for credit score purposes ? I'm sorry if this topics already been covered.
Personal Finance Deals
Serve offering $20 for tax refund direct deposit
Added on : Friday February 21st 2014 06:00:11 AM
g: 0 Posted By: Shufflindoh
Views: 47 Replies: 0 Swerve

Fine Print;
To receive the $20 credit from American Express Serve, you must (i) successfully sign up for new American Express Serve Account, (ii) activate your American Express Serve Card, (iii) select and successfully enroll in Direct Deposit for your 2013 1040 federal income tax refund with your American Express Serve Account information, (iv) file your 2013 federal 1040 income tax return by April 15, 2014 and (v) receive your 2013 1040 federal income tax refund by Direct Deposit into your American Express Serve Account by May 31, 2014. A qualifying Direct Deposit is defined as an electronic deposit of a 2013 1040 income tax refund by the United States Treasury into your American Express Serve Account. Refund anticipation loans or other similar providers and products do not qualify for the promotion. Transfers or loads into your American Express Serve Account from any other funding source (including P2P, credit or debit card, ACH, remote deposit, cash) whether or not such load or transfer includes all or a portion of an income tax refund check, monies or other any form of income tax refund, do not qualify for this promotion. Funds transferred via Direct Deposit generally post on the day that American Express Serve receives the transfer from your payor. However, in some instance it may take several days for American Express Serve to receive your payor's transfer, so please allow sufficient time for that process to occur. American Express Serve is not responsible for income tax return or refund processing or direct deposit requests that are not honored or otherwise erroneously processed by the Internal Revenue Service, United States Treasury or their agents. Statement credit will be posted to your American Express Serve Account within thirty (30) days of satisfying the above requirements. Limit one (1) $20 credit per American Express Serve Account. Subaccount holders are not eligible to earn a credit. Offer subject to change or cancellation at any time and cannot be combined with any other offer(s).

I'm not a new customer but I'm giving it a go...
Deal Deals
Need advice on current debt situation!!
Added on : Wednesday February 19th 2014 10:00:13 PM
g: 0 Posted By: dlight1
Views: 50 Replies: 2 These type's of threads always get loaded with RED towards the OP, however I'm asking the community here on any advice to help the situation.

Home Equity Loan: $34,200 @ 5.25%
Student Loan: $5,100 @ ($4,500 @ 3.4% and $600 @ 4.5% consolidated)
Chase Credit Card: $0 @ 17.99%

Net Annual Pay: $22,000
Bank accounts: $3,072
401k: $22,000

Basically in a nutshell, the Home Equity is $224/mo for the next 19 years and the Student Loan started as 12,000, but is now just sitting in forbearance for the past year and a half. Forbearance is due to expire in October, but chances are I'll ask for an extension. The student loan offers auto-pay which reduces the interest by 0.25%, but obviously carries a $53/mo bill to stay on track, or $33/mo if extended to a 15yr term (10 original term). The Chase card has a low credit line of just over $2,000, but its sole purpose is to be used to earn 1% CashBack paying monthly bills (yeah trying every avenue to help... net CashBack is roughly $240/year), such as electric, water, and sewer bills. Based on the past 2yrs of bills, etc... In around August or early September, we no longer will be able to make payments on the monthly expenses.

Basically, I just would like to know of any other sources/ideas to eliminate this debt or at least stay steady and make it by on current income.

The next possibility to help things would be to lower health and dental plans. Currently paying around $3,276 annually from employer. Tapping into the 401k seems tempting, but would like to stay away from that option as well (unless it would actually help matters). As of right now, the only chance of hope is to get a raise in July, otherwise somethings got to give somewhere.
Question Deals
Using Roth+Traditional IRA to pay graduate school tuition?
Added on : Wednesday February 19th 2014 09:00:10 AM
g: -2 Posted By: imexish
Views: 106 Replies: 6 I am returning to graduate school this year and it will cost me $110K (tuition+all living expenses).I can take out $20.5K using Stafford loan at 6.8% with a 1% origination fee and use GradPlus Loans at 7.9% with 4% origination fee for the remaining balance.

However, I have $13K in my IRA and $38K in my Roth IRA. I read that I can borrow or take funds out from here without any penalty as long as they're used for tuition. I am considering using all of this $50K to lessen the GradPlus loan amount. Is this a good idea?

Personal Finance Deals
Adding an addition onto my house - Questions. Am I going about this right?
Added on : Wednesday February 19th 2014 03:00:11 AM
g: 0 Posted By: NonReturnable
Views: 104 Replies: 4 I own a 1300 sqft 3 bedroom, 1 bath house.

I would like to add an extra bathroom onto the master bedroom.

2 reasons - I am sick of walking downstairs in the middle of the night to go to the bathroom. Also, we would like to move to a larger house closer to my job in 3-4 years or so (waiting for wife to finish college and get a secure job). I have been watching the houses for sale in my area for the last several years, and its seems like the houses that sit on the market and never sell have 2 things in common - single bathrooms and tired, old looking kitchens. I've updated my kitchen with tile floors, new appliances and new counter tops.

My house has 2 floors. The second story is not the full width (front to back) as the 1st floor. The only thing upstairs is my office and our master bedroom. These are over top of my living room and kids' room. I would like to add a 2nd floor over the back part of my house (dining room and kitchen).

I originally was going to just do a 15 foot wide dormer, however I have had a General Contractor come out to give me an estimate, and said it would be much easier and cheaper to build the addition to the existing corners of the back of the house, as it would not require as much reinforcing if he used the existing corners. This would not just give me a bathroom, but if we go this route, it would give me enough space for a small 4th bedroom, master bath and walk in closet. This would easily increase the value of my house by 25%.

So, here is where I am at -
I have several GC's coming to give me estimates on framing in the addition, putting a roof on it, and siding the outside. That is all I want. I can do everything on the inside. I have drywalled several other rooms (used to be plaster), I have experience doing electrical work, and I have a friend that is a plumber that said he would help me with adding the drain and water lines. In my county I do not have to get permits. I know this is weird, but they only require permits for anything that is a 3 family building or larger (eg, apartment). I've confirmed this by calling the courthouse and asking.

I went to Menards and priced everything I would need for the bathroom. It came to right around $1000 for a shower stall (I want a 3/4 bath), toilet, sink, plumbing materials, etc. I don't plan on making this super upscale, just using contractor grade materials, as in my area there isn't enough market demand for these items. Drywall and electrical materials will run me around $400. Insulation about $150.

I had an HVAC unit installed 6 years ago, and to be honest, I got kinda screwed. Its not powerful enough. When it gets in the upper 90s, it can only keep the house around 75, and the 2nd floor gets into the 80s, so we use a window AC in the master bedroom. I plan to reroute the return that goes to the 2nd floor to pull from my living room, and the forced air line to a bedroom that currently doesn't have a forced air line. I'll install a 2-ton Mitsubishi mini-split HVAC unit to cool and heat the 2nd floor. These run around $700.

I plan to take these numbers (after I sort through everything and make a nice spreadsheet) along with 3 estimates from different contractors on framing in the addition to my bank, to attempt to refinance my house and get a home equity loan to pay for the addition.

I paid $75k for the house in 2008.
I currently owe $66k on a 30 year mortgage.

Since I purchased the home, I have put about 20k into upgrades (laminate floors, HVAC - it only had electric baseboards when I moved in, split up a massive 15x20 laundry room to make a small utility hallway and a 3rd bedroom, etc)

I would like to get the house re-appraised to take the upgrades I've done into account, however I will have to pay for it because the bank will only do drive-by appraisals, not one where the guy comes in.

Should I pay for the appraisal before or after I talk to the bank?

Basically I want to go to the bank and say:
I owe 66k
The house is worth $X (somewhere in the mid $80s most likely, based on what my neighbor who is a Realtor says)
I want to do the following upgrades that will cost $Y and afterwards the house will be worth $Z.

So, how does this work? How can I get a loan on the equity between what I owe and what the house is worth?

What is the best way to go about this?

I would appreciate any advice that will get me moving in the right diection.

Thanks guys!

TL;DR - Want to build an addition on my house. Talk to me about how to best approach a home equity loan.
Question Deals
First Time Homebuyer- Newbie Mortgage Question. ARM or Fixed?
Added on : Monday February 17th 2014 03:00:14 PM
g: 0 Posted By: saavyfw
Views: 130 Replies: 5 Pre-approved for $175K, 30 year fixed @5.5% 100% financing with Navy Federal and plan on staying in the home 5 years or less. I am exploring all options and don't know too much about mortgage rates and options so looking for some advice. I have excellent credit.

My question is which loan type is best for me? I never really considered the ARM but would this be the best option in my case? If so, what type of ARM and should I go with Navy Fed or Pen Fed? I think Navy Fed has a slightly better 5/5 ARM rate as of this posting. Thanks!

Real Estate Deals
First Time HomeBuyer looking for Mortgage advice
Added on : Monday February 17th 2014 12:00:05 PM
g: 0 Posted By: risic
Views: 17 Replies: 0 I'm a veteran looking for advice on whether to take points or not on my mortgage. I bank with Navy Federal Credit Union.I have about $25K saved. I plan on appplying for a VA Loan which requires no down payment & no PMI, but a funding fee of 1.75-2.15%. The asking price for a home I like is $240K. Here are the interest rates, associated points,and a 1% origination fee for a 30 YR VA loan:

3.375%@ 3pt
3.5% @ 2.5pt
3.625% @ 2pt
3.75% @ 0pt
4.0% @ 0pt (no 1% origination fee)

I don't know which way to go. Should I take the loan with the most points to have a low interest rate and save $30K in interest payment(paying about $15K total in points & fees) or pay no points at all?
Any help will be greatly appreciated.

Personal Finance Deals
Tax implications of repaying a gift from relatives?
Added on : Saturday February 15th 2014 12:00:06 PM
g: 0 Posted By: moxie
Views: 117 Replies: 0 When my husband and I were looking for a house last year, we found a good fit and had an accepted offer within less than 24 hours after we saw the house.My (awesome and generous) folks offered to gift us part of our down payment, but when we were applying for a loan in November they surprised us by wiring over twice the amount they had offered. This amount was well over the $52K annual exclusion amount. I wanted to give it back but they insisted that we take it as an interest free loan with no due date.

After consideration, my husband and I decided to hang on to it for a few months. My parents were right-- the extra sum sitting in our account made the bank loan go through smoothly. They saved us from having to break our laddered CDs or dip into our Roth IRAs. The house buying process turned out to have a lot of unexpected expenses too so things would have been very tight without their help.

At any rate, three months later all our money is now liquid, I got paid for some major contracts which had been outstanding in 2013, we got back rebates on our closing fees, points, agent fees, and reimbursed for moving expenses (thanks to Redfin, PenFed, and husband's employer), and we can now pay my parents back. We want to do this ASAP so that we don't get spendy with what is probably a large chunk of their retirement savings.

My question is:
What is the best way to deal with this tax-wise? Do they have to file a gift return for 2013 and will we have to file a gift return for 2014? Should we treat this as a loan (though when applying for our housing loan, they wrote us a gift letter)? I don't expect that either of us will ever approach the lifetime gift-tax exemption of $5.25 million, so is there anything to worry about at all?

Thanks for your thoughts and advice!
Tax Deals
Fannie May Post Valentine/President's Day Sale up to 50% off + free S/H
Added on : Saturday February 15th 2014 11:00:02 AM
g: 0 Posted By: SNakian
Views: 53 Replies: 0 Time to mail out post Valentine Day chocolates to those who are not picky Valentiners
Use code 33667 for free shipping on all orders over $39. Side note: free shipping code doesn't usually work together with sale prices, but it did for me. Hope it's not a one time use code.And NO, Fannie May doesn't give student loans
Fannie May Sale
Hold rental home or sell now Fw advice requested
Added on : Saturday February 15th 2014 01:00:03 AM
g: 0 Posted By: fljeremy
Views: 80 Replies: 0 Dear FW community,

I purchased a home in 2003 and moved to another home in 2007 and have been renting out my original home. With last years nice appreciation and rates looking like they might start to rise my current tenant (a mortgage broker) wants to buy with a USDA loan. He gave me a pretty good offer 230k zillow currently says it's 197 but we all know they run low. In speaking with a real estate agent last October said it should go for about 220. So I am torn should I sell now which has the advantages of no listing commission as it's a deal between him and I. Or hold for maybe 3 more years or more. Currently I am getting below market rent of 1400 market rents are now 1550 so if I sell I also lose an income stream. And based on my research property values will continue to climb for at least next 3 years, 5-6% a year? I am in North Florida , holding out could mean a much bigger payday down the road.

In addition if I had some cash in hand from the sale I could refinance my primary and lower the rate by at least 1 percentage point and lower my monthly payment by 1000 a month but also taking out another 30 year mortgage. Currently I have 25 left on primary and 20 left of rental. Hmmm options options. help me out with your knowledge please. Thank you in advance
Question Deals
Balancing Student Loans, Retirement Funds, and life's expenses
Added on : Friday February 14th 2014 05:00:21 AM
g: 0 Posted By: itslikepaper
Views: 49 Replies: 0 Hello,

First of all, thank you in advance for any and all advice. I've been reading and learning quite a bit on FWF for a long time now, but this is my first time posting. FYI - I wish I knew about this forum before I took out these damn student loans.

Main Question: How should I allocate my income in order to responsibly pay off my student loans while still saving for retirement and other life expenses?

26 years old
Employed, Full-Time, earning $48,000 per year - company does not match 401(k)
Married (26 years old, earning $25,000 per year)

$27,718 - 6.8% Unsubsidized
$4,357 - 5.6% Subsidized
$5,512 - 6.0% Subsidized
$22,202 - 6.8% Subsidized
$2,627 - 2.35% Subsidized

Other expenses:
Rent & Utilities $1,100/month
No credit card debt
No auto loans

$11,000 in Savings Account

Here's my two lines of thinking

1. Max out Roth IRA as an emergency fund up to $11k (2014 & 2015)
2. Keep $3k in Savings, but put the remaining $2,500 (11k - 5.5k Roth contr - 3k savings) into the 6.8% Unsub student loan.
3. Pay minimum on lower interest rate loans while throwing everything else at the 6.8% Unsub loan.
5. An option (please give your opinion) is to enroll in an online course at a local Comm College to postpone interest on Subsidized loans.
6. Work hard and earn more money.

Fastest way to pay off student loans.
Simplicity (no BTs and no crossing fingers for some kind of student loan bailout)

No room to save on down payment for house
No retirement savings


1. Max out 401(k) to lower our AGI
2. Pay minimum on student loans
3. Get a job in the public sector (and probably a pay cut) to take advantage of PSLF (Public Service Loan Forgiveness - forgives all loans after 120 monthly payments)
4. Continue to keep AGI as low as possible using 401(k).

Paying min on student loans gives me more flexibility with my money
Significant retirement savings

PSLF, like anything else the government does, is not guaranteed to be around in 10 years
Taking a pay cut
I'm sure there are more cons, but drawing a blank right now

So, it feels like to me that these are my only two options and that they are mutually exclusive i.e. I can't really do a hybrid of both options to take advantage of the PROS. Any other ideas and suggestions are appreciated!

Thank you all again for any advice you can contribute!!!!!!

Personal Finance Deals
Earn up to xxx miles with a loan through prosper (targeted, YMMV)
Added on : Friday February 14th 2014 03:00:10 AM
g: 0 Posted By: DrDubious
Views: 68 Replies: 0 Got this targeted offer in my email today:

Earn up to 18,000 miles with a loan throughProsper

Get closer to your next flight with every dollar you borrow.Whether youre ready to pay down high-interest-rate balances, pay expenses for your small business or looking to finance a significant purchase, Prosper can help you save thousands of dollars each month. You can borrow up to $35,000 and earn thousands of award miles.
The online application is simple, fast and secure. There are no prepayment penalties or hidden fees. And with great low rates, you could save thousands of dollars.*

The fine print indicates that there are several different ratios of miles to dollars borrowed depending on the specific offer sent.
There is also mention of how Prosper can disqualify anyone from the offer at any time.
Details of the loan itself are pretty lacking however, and it appears that the only way to get them is to actually enter data which would effectively constitute applying for the loan.

So all that said, does anyone have experience with this promotion or similar ones in the past?

At first glance it looks like it has potential for pretty easy miles, for the cost of a few days' interest, although I have no idea how active they would be about revoking miles for quick turnaround.

Deal Deals
New home construction the FWF way
Added on : Thursday February 13th 2014 11:00:08 AM
g: 1 Posted By: adamc
Views: 224 Replies: 1 Hi all,

I am about to embark on the construction of a new home. I want to apply FWF strategies to accomplish two major goals: First, and most obviously, I want to reduce the cost. Second, I want to extract cash out of the process to end up with no net money down.

My GC is willing to run the job until the house is under roof and weather tight and then let me take over as GC. If I get in over my head or have problems with a specific sub, he will help out. He will also allow me to get his discounts with suppliers. The reason for this strategy is two-fold. The lender wants a 1.5 point additional origination fee if I do true owner-builder, and the foundation and framing are aspects of the job that are outside my comfort zone. All of the rest of the jobs are things that I am comfortable either working with the subs or doing myself.

My primary cost savings strategies:

Sweat equity. As described above, I will do a lot of the GC work and a lot of jobs myself.
Shop hard. Take advantage of outlets, sales, rebates, etc. on appliances, cabinets, flooring, etc.
Gift cards for CC rewards and fuel points wherever possible.
Choose energy efficiency features that will reduce the overall cost of ownership (extra insulation, air sealing, etc.)

Extracting Cash Back out of the project is where I need a little more advice. My basic plan is to set up a business entity for the project. No, I don't want to try this. My goal would basically be to loan the money to the business for the down payment, and then have the GC sub completion of the job to my business. The business would then repay me for the loan with the "profit" from my sweat equity. At the end of the project, the business would have no net profit or loss after repayment of the loan.

In order for this to work, the house will have to appraise high enough to keep me below 20% LTV.

Outside of opening a bank account and possibly getting some contractors insurance, what snags does anyone see?


Personal Finance Deals
How much house should we buy? Several variables here...
Added on : Wednesday February 12th 2014 05:00:07 PM
g: 0 Posted By: dougletw
Views: 54 Replies: 1 Just the data:
Two wage earners, one at $85K and one at $40K. Additional income of $500/mo from disability pension.
Analyst at $85K depositing 8% into a 401K with a match of 10% of salary plus .75 of contributions up to 6%. Age of employee is 40. Current 401K balance of $70K. Vested defined benefit to pay out $800/mo at age 65. Projected retirement income of $90K a year seems about right.
Teacher at $40K has a defined benefit plan with a pension that allows full retirement if age plus years of service equals 80. Age of employee is 37.
First home completely paid off. Resale value of $150K. Rental rate of $1200/mo.
Two children, ages 5 and 6. $500/mo deposited into college savings plan. Current balance is approximately $15K.
No debts period. $80K in cash on hand for a down payment. VA loan terms available.
Prequalified for $521,250.00 with a 20% down payment.
Goals--1) Pay for most of kids' college (don't want to pay for everything to incent scholarship)
2) Feel secure about retirement
3) Buy a new house

What SHOULD we pay for a new house? I feel like we may be too thrifty here because my wife is culturally averse to debt, even for mortgages.
Real Estate Deals
Penfed 15/15 Adjustable Rate Mortgage
Added on : Wednesday February 12th 2014 09:00:13 AM
g: 0 Posted By: discoganya
Views: 23 Replies: 0 Penfed now offers an interesting product: 15/15 ARM (i.e. a 30 year mortgage that resets only once midway)


For Purchases & Refinances
Primary Residence & Second Homes (Investment properties are not eligible)
Loan amounts up to $750,000
1% origination fee

On 2/12/2014 Rate is 3.75%

An interesting alternative to a traditional 30-year fixed.
My Time to Refinance? Help wanted.
Added on : Tuesday February 11th 2014 09:00:22 AM
g: 0 Posted By: justignoredem
Views: 47 Replies: 0 Hello folks,

I'm new to the mortgage game. I came into a relationship with my fiancee having a home already, so forgive me for some questions. I know some things might be able to be addressed in the sticky topics, but I don't feel comfortable with everything yet (including terms).

Current Information:
Yearly Income Combined (Untaxed): ~$130k
Original Mortgage Amount: $140,000
Current Mortgage Remaining: $111,000 (Just over 20% threshold?)
Mortgage APR: 5.00%
Loan Type: FHA. So we currently pay PMI until the end of this year. Refinancing would save us a little here.

We Currently pay our Mortgage + $600 - $1000 additional principal every month (depends on how good we did for the month).

My issue's are:

1) What fee's can I typically expect? A lot of people mention "Don't worry, they can roll the fee's into the loan"... I don't care, a fee is a fee, a debt is a debt. I want as least fee's as possible. I want as much equity as possible.
2) What is the best way to Refinance? I am thinking given how much additional principle we do, a 15-year at today's rates (~3.3% according to Yahoo Finance) makes the most sense.
3) As I understand, the disadvantage to refinancing is our mortgage returns to Day 1. So the majority of the beginning of the loan payments will go to Interest instead of principle. Is this true? If so, should I stick to my current 30-year?
4) Who should I refinance with? Most bang for my buck, least amount of fee's? I hear PenFed and Lending Tree from time to time here, but I'm still unsure. Any help is appreciated given my circumstances.
Credit union violating laws in regards to credit life insurance
Added on : Tuesday February 11th 2014 09:00:22 AM
g: 0 Posted By: superdrew
Views: 157 Replies: 1 My wife went to get a loan yesterday on a vehicle, and had everything all approved and set. However when signing, they presented her with a life insurance option that they said was required (after the hard sell on gap, disability etc) She told them nicely to shove their loan paperwork up their ass, and left as they refused to give her a loan without the life insurance. I contacted a branch manager today, whom said the same thing, and I asked for it in writing, as I was quite sure that it was against the law. She then transferred me to someone else who said that it is not required, but couldn't explain to me why my wife was told that it was, and why they wouldn't issue the loan without it.

We have other options, so I don't really care about getting the loan from them, however the fact that they do this to less financially educated people is infuriating to me. I want to do something to change their practice.

I've contacted and filed a complaint with the NCUA, and my state insurance commission, but considering this is a medium sized credit union with thousands of members that they have pulled this crap on, I'm wondering if finding a class action attorney might be in order, and if so, how would I go about finding the best one in Michigan.
Personal Finance Deals
Need advice re student loan/mortage refi with cash available
Added on : Monday February 10th 2014 08:00:21 AM
g: 0 Posted By: throwaway2001
Views: 83 Replies: 0 So my wife and I have collectively about 300K in student loans and a $350K mortgage (house is valued at $300K currently in a yearly arm after having a 7/1 expire). We have $200k in liquid assets. My wife is a stay at home mom for now, but when full time employed, pulls in six figures as I am doing now. Okay those are the deets- now to my considerations-

1. I am in a position to perform a HARP 2.0 at any time (I haven't refi'ed yet since purchasing the house)- however, I'm concerned of having to have a higher apr due to the program- I'm also concerned about being locked into the HARP 2.0 terms- I've read that I can't refinance if I'm in the HARP2.0 program (definitely not again with another HARP 2.0 but am unsure if after paying down principle that I would be able to refi through another bank for an ARM or 30y in the next 3-5 years after having done a HARP 2.0.) I would then continue to invest as I have been doing eventually paying everything down at some point before I die.

2. With our liquid assets- my other consideration was paying down the mortgage- then refinance with a 5/5 or 30yr. basically invest $150k from assets and have $50k in case of emergency- then chip away at student loans and mortgage until I die.

3. Paying off a majority of student loans- I'm getting no benefit from student loan interest through taxes due to my earned income- paying off those loans seems premature when my house is underwater- nonetheless- eventually paying off my student loans would provide more money to pay down my mortgage until I die.

My thought was basically do #2 (pay down the house and refi)- assuming housing continues to recover- potentially refi again later on and pull some money out of the house to pay off some of the student loans- by that time, I would have made a pretty good dent in the loans to potentially pay it all off- this would be at the cost of still owing a vast majority on my house and maybe getting dinged with higher rates later on- but I'd benefit from taxes from the mortgage all the while.

Any advice into how to handle this debt load with my available assets would be greatly appreciated.

Personal Finance Deals
Fiancee has large amt of Student debt. How to shield assests?
Added on : Monday February 10th 2014 06:00:17 AM
g: 0 Posted By: Playarrz
Views: 141 Replies: 6 Hello,
My fiancee and I are tying The Knot
later this year. She has an excessive amt of student debt(>$300K), but she's a physician so maybe in 10 years we will be debt free. I wanted some advice on how I should shield my assests(i'm currently employed mid-career professional).
Specifically, if I open up a joint account with her in a non-community property state, I might be liable for her debts also. Can anyone shed light into this? How do I protect my assests aside from a pre-nup? I don't want to be responsible for her student loan debt.
Personal Finance Deals
g: 0 Posted By: robronson
Views: 92 Replies: 1 I had $6k of SE income in 2013 as my sole source of income due to burning off a non-compete and taking a large chunk of vacation time. I expect to have $200k of SE income in 2014. However, that $200k is not guaranteed. It's on a contract with provisions that allow the client to terminate my services without cause at any time.

My concern is that I'll make $50k in the first quarter of 2014 and then make $0 for the rest of the year. I don't want to pay $20k in estimated quarterly taxes on April 15th 2014 on my $50k annual income.

I'd much prefer paying a larger estimated quarterly tax payment in Q3 and/or Q4 when I know my income more precisely. May I use my $6k figure from 2013 as my expected income for 2014? I imagine the IRS will scoff at that if I wind up making 30x that amount.

Any suggestions? I'm reading through IRS Pub 505 and 1040-ES this morning and it's not really clear. I do plan on maxing out an IRA and Individual 401k this year, so that makes things stickier. If I wind up only making $50k in Q1 and $0 the rest of the year, I'll owe almost nothing in taxes since I can do a Traditional IRA, I-401k plus employer contribution, standard deduction/personal exemption. I can't afford to give the IRS an interest-free loan of $20k for 1 year if my contracts fall through after Q1 because I'll need that money for living expenses the rest of the year.
Tax Deals
VA IRRRL lenders. How to find the right one...
Added on : Saturday February 08th 2014 08:00:11 AM
g: 0 Posted By: bucsox
Views: 79 Replies: 1 Ive been thinking about trying to find a lender to refinance my current VA loan. I get countless number of offers in the mail, but just about all of them seem hokey and come from no name places. I don't know exactly how to find a reputable, good lender and get a good deal. Google searches turn up a lot of sketchy places.

Can anyone recommend on a few I can inquire to about an IRRRL?
Investing Deals
PenFed - How long until you hear from them for a 5 Yr. ARM refi. app?
Added on : Friday February 07th 2014 10:00:15 AM
g: 0 Posted By: nitesbane
Views: 106 Replies: 0 Aside from reading that it takes a long time to close, couldn't get an answer on the forums to the question in the message title. I did the online application a week ago, got approved (80% LTV, no debt, > 680 credit score, great debt-to-income ratio, etc.), waited the two days, which was Tuesday, to hear something, and received no phone call. Waited two MORE days, nothing.

I called today early this afternoon to find out who my loan app is assigned to and found out that ithadn't even been touched yetby the loan officer. Is this normal? I don't see why a company would advertise a 24 to 48 business hour callback and not even have a person look at the loan by five days after that. Fine, you don't count Saturday or Sunday (even though oftentimes loan officers work on Saturday), three days after that.

It seems to me like it's not a good start if the process is held up so early on after an approval.
General Economics Deals
Spec Home Financing
Added on : Tuesday February 04th 2014 07:00:08 PM
g: 0 Posted By: dallastyme
Views: 138 Replies: 0 I'm looking for some financing ideas to fund a spec home. I already own the lot outright and have some cash to contribute but need $100,000. A construction loan is out of the question because banks are not currently offering loans forspec homes. I'm a newly licensed contractor and do not have a financial record to become an approved contractor by the bank. Homes in my area are currently selling fast and I believe I can realistically build and sell a home in under 12 months.

My current ideas are;

-Applying for credit cards with 12 month 0 percent interest and using cash advance, checks, or paying my construction company via paypal and paying the fee.
-Leveraging my automobiles (no equity in my home).
-Unsecured line of credit or personal loan from bank.
-Small business loan.

Has anyone been down this road or have any input?
Real Estate Deals
g: 0 Posted By: latashiaholley
Views: 23 Replies: 0 Here is my situation...I make $75K per year. I have $38K in the bank and an equal $38K in student loans. I don't have any other debt, a minimal car payment and cell phone bill. Trying to consider how much to spend on a place as I am looking for a new apartment, too. I am currently contributing the max my employer will match in the 401k (they match 37% on the max 8% that I contribute). I hate having all this money sitting in the bank making absolutely NOTHING! Should I pay off student loans, invest, or are there other options I should consider? I am completely clueless on finances.

Additional Details:
I should probably have mentioned that my student loans are 6-7%. I am leasing my car so there is no loan/interest there.
Personal Finance Deals
How long is too long to live in your parents basement?
Added on : Tuesday February 04th 2014 05:00:12 PM
g: 0 Posted By: packers9626
Views: 54 Replies: 1 Banking about $1400 a month right now on average. All debt is paid off except $11,000 in student loans ($150 a month).

I have a younger brother who lives at the house anyways (he is in college) so its not like I am really burdening them. All I really cost them is a home cooked meal every day. I will obviously move on if there was a girl or some other compelling reason to get my own place. But there is not at this point. When do you think is the right time to move on? I just turned 27.
Personal Finance Deals
Financing Rural Land (with New Construction Housing On It)
Added on : Tuesday February 04th 2014 11:00:19 AM
g: 0 Posted By: ltcm
Views: 152 Replies: 4 I'm considering buying a piece of property and building a house on it. I've narrowed down the area (within 15 minutes of where I currently live, about 45-50 minutes from the downtown of a major city), but have not picked out a specific lot yet. The properties I'm looking at range from $150-$300K for 35-70 acres, with the more expensive properties including wells, power to the property already, etc. The main thing I'm interested in is how to finance this project. I've read about construction loans and land loans, but wonder whether something like this might not fit either category exactly. My questions are:

1. What type of loan should I be looking for in this situation? How much of an increased interest rate/increased down payment should I expect?
2. What if I don't build a house right away? One idea I've been investigating is to buy the land and build a nice barn with an apartment above it first, while saving to build a "main" house within 2-3 years. If I spent $100K on the barn/apartment, would I be able to get a loan for the full land amount + barn, or would the appraisal process/lack of a main structure kill this idea? The barn + apartment is definitely part of the plan in the long-term anyway due to family members who will likely live there one day, so it wouldn't be an unnecessary expense, just a reversal in the typical order of building.
3. Finally, what about just financing the land and putting a trailer on there for 1-2 years until I save up more money for the house? I'm not too familiar with loans for raw land, so I'd love to hear people's experiences about that as well.

And just general thoughts that will provide me additional avenues to research -- thanks!
Personal Finance Deals
Private Student Loans: Best Way to Consolidate?
Added on : Tuesday February 04th 2014 08:00:19 AM
g: 0 Posted By: sbdywinski
Views: 114 Replies: 2 My Federal student loans just kicked in and paying both those and my private loans per month are near impossible to manage. I have approx $30,273 in federal loans, and $41,685 in private loans. Yeah I know, not the best situation and it is something I am regretting, but I am trying!

Student Loan Provider Loan Type Payment Plan Balance Interest Total (per provider) Payment Amt. Payment Amt Per Mo. Due Date Sallie Mae Smart Option Student Loan Unknown Unknown $4904 9.63% $160 9th Sallie Mae Smart Option Student Loan Unknown Unknown $2017 9.63% $6921 $66 $226 9th Discover Bank - Student Loan Unknown Unknown $19449 11.25% $19449 $207 $207 13th CitiBank CitiAssist Undergrad Loan Unknown Unknown $9730 6.25% $74 13th CitiBank CitiAssist Undergrad Loan Unknown Unknown $6215 3.13% $15945 $37 $111 13th Nelnet - Group A Subsidized Standard $4500 6.5% $53.11 14th Nelnet - Group B Subsidized Standard $4500 6% $51.18 14th Nelnet - Group C Subsidized Standard $5500 5.6% $61.4 14th Nelnet - Group D Subsidized Standard $5500 4.5% $20000 $58.28 $223.97 14th Nelnet - Group E Unsubsidized Standard $3476.55 6.8% $46.61 14th Nelnet - Group F Unsubsidized Standard $2406.47 6.8% $32.26 14th Nelnet - Group G Unsubsidized Standard $2262.49 6.8% $30.33 14th Nelnet - Group H Unsubsidized Standard $2128.21 6.8% $10273.72 $28.53 $137.73 14th
Note: I HAVE NOT switched my federal loans to be on the income repayment plan yet, as my first payment isn't until the 14th (Happy Valentine's Day to me!). Once that is done, that payment is about $183 per month for the federal loans combined.I have every interest in paying down my credit cards ASAP so that I can apply those costs to my highest interest student loans.

Some facts about me:

Monthly income after taxes taken out: ~$1720
Credit Score: Currently 640 (working on decreasing CC utilization by getting approved for more cards)
Credit Card Debt: $6,333 (was under-employed for FAR too long)
Overall Credit Availability: $9220 (Was just approved for a 1000 credit card, reflected in total)
I am in my mid 20's, don't own a house so no collateral for personal loans. Car is worth approx $3.5k but I dont want to part with it (grad gift from mom before passing, only car that hasn't EVER had breakdowns. Costly repairs on a cheaper car don't seem like a better option in the long run).
No cosigner possibilities

Questions about private loan consolidation:

Is there a particular lender which tends to give the best rates?
If I, for example, go to CUStudentLoans.com and check what kind of rates they can give me, is that going to do a hard/soft credit inquiry? I know it is good to shop around with this sort of thing, but I am wary of heavy hits this may cause.
One of my CitiAssist student loans has a VERY low rate of 3.13%.. should I consolidate this with the others? Seems like a good one to hang onto, but it could also lower the overall interest rate I would be approved forif it was averaged with the other loans.
Is there a good "tactic" as far as getting a good rate? My boyfriend and I thought about the possibility of balance transferring my credit card debt to one of his cards to bring up my credit score pretty good and THEN apply for the consolidation.. then transfer back to me (with cards with balance transfer deals, of course)
Is there a particular credit score I should strive for before applying to consolidate?
Are there any key things I should avoid in their consolidation terms and conditions? Variable,Fixed,25 yr length,etc.

As I am sure it is apparent, I am pretty clueless about what the best option here is. I appreciate any words of wisdom you might have with this subject!
Personal Finance Deals
g: 0 Posted By: IL352010
Views: 217 Replies: 2 First, thank you for your ideas and suggestions. This truly means a lot to me. I have searched and read through the required materials on this board. Again, I genuinely thank you for your time. I have tried to include the most pertinent information below.

My question is: How much should I invest in my 401k v. how quickly should I pay off my student debt.

I am 26 years old. Graduated with a professional degree in mid-2013, passed my professional licensing exam and started working at a Fortune 500 company in early January 2014.

I managed to get out of undergrad with no student loans (working during the year + summers and earning grants and scholarships). I graduated from law school with $62,000 of debt and allocated it by percentage below. (All Federal Loans).

Direct unsub. Stafford- $33,000 (6.8%)
Direct Sub. Stafford- $17,000 (6.8%)
Direct Student Plus- $12,000 (7.9%)

I've been paying off interest as it comes due throughout law school and have no other debt whatsoever. That said- my savings are nearly 0. (I will be receiving my second paycheck this week).

My starting salary is $75,000 even. I expect to hopefully be able to increase that in the near future. Truthfully, in my industry, I'm fortunate to have a job right now. That said, once I gain a few years of experience I believe I will be able to increase that figure dramatically.

My company offers a 6% 401k matching plan, which vests on a graded scale. Meaning- they will match my first 6% fully, however, after my first full year of employment 33% of their match will vest and be mine if I leave the company. After two years- 66% will vest and then after 3 years 100% of their match will vest. This worries me a bit because it is not uncommon to find or be offered a higher paying job within that time span. I suppose I'll have to decide how big a pay jump and whether it's worth it at the time.

Also my employer is a public traded company and they offer a ESPP. They will match the first 3% of contributions, after-tax, to that program.

I've also started a Roth IRA- although I have only put a few hundred dollars in it so far. I live in Chicago with a roommate and pay about $1,000/month total for rent, utilities, etc. I picked this living arrangement so that I could not have a car and walk about 4 blocks to work each day. If I need a car for a particular day for work- my employer will pick up the zipcar tab- which is great. My goal is to stay in this specific living situation for about 2-3 years. I eventually hope to save to buy a modest 1 or 2 bedroom condo.

Back to my question- Any advice on the strategy of repaying my loans and saving for retirement would be incredibly helpful. Again, thank you for your time and consideration.

Personal Finance Deals
Sell or Keep this Rental Property
Added on : Monday February 03rd 2014 11:00:18 AM
g: 0 Posted By: callthedr
Views: 83 Replies: 4 I know there are similar threads to this but when it comes to deciding whether to keep or sell a rental property, I figure each situation is unique and I wanted to see what advice people had for this situation:

We bought a condo in 2001 for $170,000, which we lived in until 2007 when we moved to another house. We now owe around $224,000 (we took equity out of it in order to get a down payment on the house we currently live in). We just did a refi eight months ago for 15 years at 3.0% so we'll have it paid off in a little less than 15 years. However, we lose around $5,000 to $6,000 a year in cash flow (although that could be lowered a bit if we keep it since we'll be able to raise the rent as the current tenant is moving out and the rent is kind of low now). And that's with having the same good tenant in there for seven years now and never having to re-paint or find a new tenant, etc. and deal with those extra costs. They were only selling for around $260,000 a few years ago but now a few have sold in the $340,000 range or even higher. Ours is not fixed up as much as some of the condos in the complex so perhaps a $330,000 selling price might be a best guess. I figure that after a few fix-ups on the place, realtor commission, taxes, etc., we could maybe walk way with $30,000 or so in cash after it's all said and done.

Our income is steady and pretty decent so we are able to absorb the cash losses without much trouble but I'm not sure it's the best thing to have a negative cash flow for 14+ more years before finally paying it off and making money off the thing. We do pay off more than $1,000 of principal each month since our interest rate is low and it's a 15 year loan, so I guess technically we're coming out ahead each year as far as net worth goes but not cash-wise.

The condo is in a nice area of Southern California, about 4 miles from the beach, so it's an area where rents and prices of houses are likely to rise over the years.

Finally, I don't want to regret getting rid of it if it doesn't make financial sense. But I'm not too fond of being a landlord and if financially, either decision is justifiable, I'd rather just not have the headache of being a landlord and have the extra savings to pay off my wife's school debt, save for kids college, etc. Any advice that people have would be appreciated. We talked to a professional advisor that we trust. I think he kind of favored keeping it but he more or less said it comes down to the question of whether or not you want to be a landlord or not. He thought if we didn't want to be a landlord, it's fine to sell since he knows we'll do something useful with the money and not just waste it. Thanks.

Real Estate Deals
Why would someone with 720 FICO score pay 20% interest for a loan?
Added on : Sunday February 02nd 2014 12:00:05 PM
g: 0 Posted By: fleetwoodmac
Views: 87 Replies: 1 I was looking at lending club.com for investment. See below for the page


I see several people with high FICO scores and yet they are willing to pay %20 for a loan.

I am not understanding. Maybe I am missing something
Personal Finance Deals
g: 0 Posted By: orelsie
Views: 93 Replies: 0 I have a checking account with USBank and they were offering a good loan rate for a used car (1.9% APR). When I went in to sign the closing documents, it said "If you prepay the loan you (may/will not) have to pay a penalty." The box next to "may" was checked. On the front page of the loan note, it had a section about early loan closure. The box next to that section was not checked and the line specifying the early closure fee was blank.

When I asked about the prepayment penalty, I was given the runaround:

The bank employees told me since the box on page 1 wasn't checked and the lines weren't filled in, there was no prepayment penalty. I pointed out that was inconsistent with "may" being checked, and I was unwilling to sign a loan giving them a blank check for an undisclosed fee. They said they couldn't change the loan document, and I left, planning to call the branch manager the next day.
That evening, I called the loan department of USBank. The employee there told me company policy says there is always a prepayment penalty, ranging from $50-1% of the loan. He advised talking with the branch manager the next day.
The next day, I talked to the branch manager. At first, she agreed with her employees from the night before, saying that blank lines on page 1 meant there was no prepayment penalty. I told her I wanted it in writing. She called back 20 minutes later after talking to the underwriting department. They told her there is a glitch in the software that generates loan documents and the early closure fee was not being printed as it should be. They are aware of the issue but are only informing bank employees/branch managers on a need-to-know basis. They also said that everyone who signed a loan before the glitch was fixed would receive an addendum in the mail informing them of the prepayment penalty! I told her it was a completely unethical business practice, and if they could change that fee, what was stopping them from changing my APR or any other loan amount. She said she would talk to her manager and get back to me, but she also said she would not let anyone else sign a loan at her branch until this matter was corrected.

USBank is knowingly letting people sign loan documents that do not accurately represent the loan terms. They are not making a good faith effort to inform their employees about the issue so customers can be informed of the actual loan terms, and they intend to retroactively apply changes to the loan documents. Although this is dishonest and unethical, there is a section in the terms that says they have a right to correct "errors and omissions" in the document, so it's probably not technically illegal. Buyer beware.

I've attached some pictures. Sorry for the scribbling, I was trying to explain to the bank employees what I wanted them to change.
Personal Finance Deals
Interactive Brokers margin loan for real estate purchase?
Added on : Wednesday January 29th 2014 08:00:11 AM
g: 0 Posted By: jkbrennan77
Views: 37 Replies: 0 I'm looking to build a new home and don't want to sell stock to do it. Interactive Brokers (IB) margin rates are 1.57% on the first $100k and 1.07% on the next $900k. I currently pay 2.875% on my mortgage and would expect to pay more on a new loan in particular if it was a construction loan. A Schwab Pledged Asset Line seems to be over 3.5% (1-month LIBOR plus 3.4+%).

I expect to borrow around $400k for the new home. Why wouldn't I just transfer ~$1.2 million worth of stock into an IB account and use margin to pay for the new home? (For tax purposes I would be taking separate cash out and using the margin to pay for the stocks).

I understand there is market risk and if the stock portfolio fell below $600k (?) I would risk a margin call. I would use mid and large cap US stocks and ETFs that presumably have low margin requirements (long holdings, no shorts, no options, etc.).

I also understand there is margin rate risk that the margin rate could go up over what I could get in a traditional mortgage. I don't believe the fed funds rate is going up to 2.5%+ in my time frame of the next 5 years. Also, I will likely sell my current home once the new one is complete (within 6-12 months of starting construction/initiating the margin loan) and could use the money from that to pay off the margin loan if rates go up.

They mention a $10 minimum trade commissions per month but a.) that's trivial compared to the interest savings b.) based on their fees I might do that anyway and c.) that seems to be waived for accounts over $100k. Will they throw me out if I just let the account sit there and just make a trade or two each month?

Are there other costs/risks to the IB accounts or margin loans I'm not accounting for?

Are there better alternatives I should be considering? Where better would be still sub-2% interest rate but with lower interest rate risk or market risk and without paying high closing costs or points. I'm willing to put up as much as $1.5 million in equities and the house worth $600k as collateral.
Investing Deals
Income going up SIX fold - changes to expect?
Added on : Tuesday January 28th 2014 07:00:08 AM
g: -1 Posted By: ChelseaMD
Views: 221 Replies: 5 Hi guys,

I made a new username for this topic - I have been a member here for a while, but wanted to have a different username as my old one is tied to many accounts that could make my identity known, which for some reason, I would like to keep private for this topic.

I am currently a chief resident in a surgical sub-specialty at a terrific institution. While residency comes with great training, the pay is less than stellar. My average for the last five years was about 50k a year. I have had the benefit of being married to an attorney who makes a nice amount of income, about double my salary for the last two years. So we have not, by any means, had any complaints of living under poor circumstances and are very grateful to be in our position.

Through my 5 years of residency, I maxed out my Roth IRA each year, and my wife contributed the max to her TSP to have any equal match by her employer. Our retirement is on track with what we wanted to do, especially since after this year, we will not be able to give to a Roth any more. She was blessed to come out of college and law school with ZERO debt and no student loans. I came out of college with no debt, but have roughly 120k of medical school loans to pay back still. About half are locked into a 3.5-4% rate while the rest are at 6.3%.

We have rented the last 3 years (in a big city) and have a car that is fully paid. No credit card debt at all, all bills paid for 100% every month.

I just signed a contract with a private employer to start next year back near our hometown. The starting salary is roughly 6x what I made in residency with a bonus structure that takes it even beyond that. I was lucky enough to be offered a partnership position from day 1, with no associate years/trial years to decrease my flow of income if I work hard. Basically it is an assured salary with a bonus structure that pays me 100% for every cent I make over my salary floor. It also came with a signing bonus worth about 1/2 of my yearly resident salary and moving expenses to get us moved in to our new location with no cost to us. A true sweetheart deal that I cannot be more thankful for.

Now, my wife will have to leave her job, with no way to transfer as there is no government branch there to transfer to. The cost of living will be lower, so we have that to look forward to as well.

But now comes the great unknown, and I am unsure about a lot of things - I am 30, she is 29. We currently have no children, but plan on having them in the next year or two. We want to buy a place - either a condo or house close to the beach I will be working on. We will need new cars, new health insurance, new retirement planning, new child planning, etc. I assume a lot of our benefits will be done through my employer as I have started to look through it.

However, I ask the awesome FW community - what should I expect? Besides higher taxes, what should I do now that my net worth, etc is worth more than it ever has - and by a long margin. Are there important things I must do now? A will? Life insurance? All these things I am trying to learn about, but I cant seem to shake the fact that I am forgetting many things.

I thank you all ahead of time for whatever advice you can give.
Personal Finance Deals
g: 0 Posted By: Waffles
Views: 75 Replies: 0 Santander Bank is offering a 0% 3 month business term loan for amounts from $10k to $500k. Origination fees are waived if you have a qualifying checking account.
website said: For a limited time, on business term loans between $10,000 and $500,000, approved term loan applicants will receive a promotional introductory fixed interest rate of 0.00% for the first three months following the date of the term loan closing. This promotional rate cannot be combined with any other rate discounts. This offer is not available for business term loans (i) that were applied for prior to or are in existence as of January 4th, 2014, or (ii) that would require a guarantee from the U.S. Small Business Administration. After the three month promotional period has ended, the interest rate will be based on a fixed rate set forth in the document your business will sign evidencing the term loan credit facility. The applicable rate, including but not limited to the promotional fixed rate for business term loans, is at all times subject to the terms and conditions of the loan documents. Completed and signed application must be received by Santander Bank by 3/31/2014.

website also said: For approved business applicants, Santander Bank will waive the one-time up-front origination fee of $250 on a new business lines of credit between $10,000 and $500,000 if the customer either has or opens at time of line of credit closing, a Santander Bank Business Checking or Business Checking Plus account, and waiver availability and criteria is subject to change at any time at Santander Bank's sole discretion. This fee waiver does not apply to business customers with approved business credit applications that require the guarantee of the U.S. Small Business Administration, and is not available for business lines of credit that were applied for prior to or are in existence as of 1/4/2014. Additional fees, terms, and conditions may apply. Please see your local branch representative for details. Completed and signed application must be received by Santander Bank by 3/31/2014.

Deal Deals
Going with online lender vs local lender, what am I missing??
Added on : Monday January 27th 2014 08:00:11 AM
g: 0 Posted By: Charles1
Views: 90 Replies: 1 We are buying our first home and picking the right loan is becoming very frustrating. We plan on moving again in 6-10 years (when our then children are of school age) and we would like to save $$ on interest right now.
Our lowest middle credit score is 692.

We were quoted 3.625% for the 7/1 ARM by both lenders. Buyer pays PMI, monthly, and those numbers are within $10 of each other.

We have a quote from a local lender who is affiliated with our buyer's agent:
Origination fee $700
Appraisal $450
Title insurance - lender coverage - $275
Title insurance (seller pays) owner's coverage $850
Closing/Escrow/ Settlement $325
Recording fee $100

I called a company similar to AIMLoan (US Wide Financial) and they told me they do not charge any origination fee. Their interest rate and monthly payment breakdown are identical (+/-$20) as the local lender. I told them our credit info, house price, etc and he said they can do all the paperwork now and lock it in, sounds like the same deal but $700 cheaper.

Am I missing something? Our buyer's agent told us most realtors "frown" on internet lenders like AIM Loan especially when they are used for pre approval letters.

Personal Finance Deals
Student Loan Repayment Question
Added on : Sunday January 26th 2014 05:00:07 AM
g: 0 Posted By: scott3084
Views: 138 Replies: 2 My wife currently has around $60k in student loan debt, with 1/3 being subsidized and 2/3 unsubsidized, both loans are at 6.5% and currently accruing interest. We have an aggressive payoff schedule, paying around $3100 a month. My wife currently started another graduate program (she's going for free) at 6 hours a semester. We can now qualify to put the subsidized portion of the loans back in limbo so that they no longer accrue interest while she's back in school. This sounds good, but we want to continue throwing the $3100 at the unsubsidized loan. Does anyone know if the gov't allows this? I know we're allowed to at least pay off the interest on the unsubsidized loan, but I can't seem to get a straight answer on paying off principal.
Personal Finance Deals
12 unit MF purchase decision
Added on : Sunday January 26th 2014 04:00:08 AM
g: 1 Posted By: fattie88
Views: 36 Replies: 1 Hi everyone. Could use some advice. I've located what I think is an excellent investment property.

12 units. Average rental $550/month. Total revenue approximately 77k/year (includes 6% vacancy but also other income, e.g. washer, dryers)
Approximately$37k a year in expenses.
NOI is around $39k yearly.

Purchase price around $530k. Negotiations in progress.


1) I have 3 other investment properties, a single condo, a duplex and a triplex (Pennsylvania and Virginia). Should I consider an LLC or stick with an umbrella liability policy? I read through much of this thread and I see that an umbrella is good for a few properties, but since I will own a relatively large number of units, would an LLC be more appropriate now?
2) I am 70 years old and have a large 401k position, $250,000 in an HELOC, and around a $500,000 stock portfolio. How should I structure the sale? Pulling the entire amount from my 401k will incur hefty taxes. Another option is I can obtain an investment loan for around 4.5%. OR, should I fund this from a new loan along with some HELOC from my primary residence? ... just by writing this, I realize I have about $175k I can pull out of my condo and another $100k from my duplex... should I structure the purchase based on all this equity or go for a new loan?

Thanks everyone in advance for your help!

Personal Finance Deals
HSBC Restricts Large Cash Withdrawals
Added on : Sunday January 26th 2014 04:00:08 AM
g: 0 Posted By: elptrainerny
Views: 39 Replies: 0 "Some HSBC customers have been prevented from withdrawing large amounts of cash because they could not provide evidence of why they wanted it, the BBC has learnt.Listeners have told Radio 4's Money Box they were stopped from withdrawing amounts ranging from 5,000 to 10,000.HSBC admitted it has not informed customers of the change in policy, which was implemented in November.The bank says it has now changed its guidance to staff.New rulesStephen Cotton went to his local HSBC branch this month to withdraw 7,000 from his instant access savings account to pay back a loan from his mother.A year before, he had withdrawn a larger sum in cash from HSBC without a problem.But this time it was different, as he told Money Box: "When we presented them with the withdrawal slip, they declined to give us the money because we could not provide them with a satisfactory explanation for what the money was for. They wanted a letter from the person involved."Mr Cotton says the staff refused to tell him how much he could have: "So I wrote out a few slips. I said, 'Can I have 5,000?' They said no. I said, 'Can I have 4,000?' They said no. And then I wrote one out for 3,000 and they said, 'OK, we'll give you that.' "He asked if he could return later that day to withdraw another 3,000, but he was told he could not do the same thing twice in one day.HSBC customer letterHe wrote to complain to HSBC about the new rules and also that he had not been informed of any change.The bank said it did not have to tell him. "As this was not a change to the Terms and Conditions of your bank account, we had no need to pre-notify customers of the change," HSBC wrote. Frustrated customersMr Cotton cannot understand HSBC's attitude: "I've been banking in that bank for 28 years. They all know me in there. You shouldn't have to explain to your bank why you want that money. It's not theirs, it's yours."Peter from Wiltshire, who wanted his surname withheld, had a similar experience.He wanted to take out 10 000 cash from HSBC, some to pay to his sons and some to fund his long-haul travel plans.Peter phoned up the day before to give HSBC notice and everything seemed to be fine.The next day he got a call from his local branch asking him to pay his sons via a bank payment and to provide booking receipts for his holidays. Peter did not have any booking receipts to show.The following day he spoke to HSBC again and this time, having examined his account, it said he could withdraw the 10,000.Belinda Bell is another customer who was initially denied her cash, in her case to pay her builder. She told Money Box she had to provide the builder's quote. Customer protectionHSBC has said that following customer feedback, it was changing its policy: "We ask our customers about the purpose of large cash withdrawals when they are unusual and out of keeping with the normal running of their account. Since last November, in some instances we may have also asked these customers to show us evidence of what the cash is required for.""The reason being we have an obligation to protect our customers, and to minimise the opportunity for financial crime. However, following feedback, we are immediately updating guidance to our customer facing staff to reiterate that it is not mandatory for customers to provide documentary evidence for large cash withdrawals, and on its own, failure to show evidence is not a reason to refuse a withdrawal. We are writing to apologise to any customer who has been given incorrect information and inconvenienced."
In a sense your money becomes pocket money and the bank becomes your parent
Money Box asked other banks what their policy is on large cash withdrawals.They all said they reserved the right to ask questions about large cash withdrawals.But none of them said they would require evidence of what the money was being used for before paying out.Douglas Carswell, the Conservative MP for Clacton, is alarmed by the new HSBC policy: "All these regulations which have been imposed on banks allow enormous interpretation. It basically infantilises the customer. In a sense your money becomes pocket money and the bank becomes your parent."t.""

Also http://www.mirror.co.uk/news/uk-news/hsbc-under-fire-after-stopp...
Personal Finance Deals
Path to buying a house.
Added on : Saturday January 25th 2014 06:00:10 PM
g: 0 Posted By: e0zdk3sgna7l0
Views: 106 Replies: 0 I want to buy a house in the near future which I want to buy to rent out. To secure a downpayment quicker, should I pay my student loans off on a monthly basis even when I have the ability to pay all of it all at once. I would love any advice you guys might have about this or in general. fyi houses around the area I want to buy are about $450 starting.

A little about myself. I am 23 years old and just got out of college.I just started my job which pays me 100k/yr. I have around $10k in savings with another $8k after takes coming from my company in the form of a relocation stipend. I recently started a lease on an apartment which I will be paying $1k a month for my room and my roommate will be paying the rest. My car is totally paid for and I don't have any other monthly payments that I have to tend to or worry about. Credit karma is reporting my credit score in the 790s. The total debt on all my credit cards sit around $2k and i plan on paying all of them off when its closer to the due date. I have around $19k in student loans and the interest on them dont start for another month or two. (I'd get more info on my loans for you guys right now but the website is down.)

Salary: 100k/yr
Savings: 18k
Rent: 1k
Credit Score: ~790
Credit Card Debt: 2k (will be paid when due)
Real Estate Deals
Prosper Class Action - Summary Notice of Class Action
Added on : Saturday January 25th 2014 01:00:13 AM
g: 0 Posted By: Greatness
Views: 42 Replies: 0 NOTICE TO CLASS MEMBERS
Hellum et al. v. Prosper Marketplace, Inc., et al., Civ. No. 482329



If you purchased a Note sold by Prosper during the Class Period, you could get a payment from a class action settlement (the Settlement). The Settlement website is www.ProsperClassAction.com.

Attached to this email is a copy of the Notice to Class Members, which details your legal rights and options in this settlement. Please read this Notice carefully. You can also view a copy of this notice on the settlement website www.ProsperClassAction.com.

For more information please visit our website www.ProsperClassAction.com or call 1-866-274-4004.
Official 2013 tax filing Federal/State submission and acceptance.
Added on : Friday January 24th 2014 08:00:16 AM
g: 0 Posted By: CptSavAHo
Views: 172 Replies: 0 Last year was shenanigans with tax filings. A lot of delays. Last year I submitted on Jan 28, Federal delay notice on Feb 2. accepted on Mar. 3. Holdup was a $50 home energy credit for high eff hot water heater. So for this year;

1. Date of filing
2. Federal forms or lack of
3. State
4. Response date

For me;

1. Jan 17th. I used loan statements from Dec for interest paid on student loans and mortgage, and SSI withholding to calculate taxable income from pay stub.
2. Filed with house, student loans, dependent and itemized deductions.
3. Colorado
4. Federal accepted 1/24.

And a note;

As part of controlled IRS testing, a small number of federal returns will be transmitted to the IRS between January 22 and January 30, 2014. This is before processing officially begins on January 31. If you receive an acknowledgement during this timeframe, your return has been accepted by the IRS but your refund will not be processed early.
Tax Deals
Variable Universal Life
Added on : Thursday January 23rd 2014 06:00:04 PM
g: 0 Posted By: PF2014
Views: 35 Replies: 0 Hi FW...I posted another thread about my PF and the community was SO helpful...I now humbly come to you once again for your help. I'm not really familiar with Life Insurance and have done some research, but it's a hard concept to wrap my head around with all the different options/choices out there....My wife's family started funding a VUL for her when she was 17 and later on, she took ownership/responsibility of the funding. After we got married, I took a look at her statement. She contributes $70 a month and looks like there's a $30 charge deduction monthly.

I did some quick research and it seemed for the most part, VULs are not too favorable. She is 32 years old and we don't have any kids but are planning next year.Since she's contributed for 15 years now, is it worth it to continue or should we look somewhere else?

App Signed Date:04/01/1999
Maturity Date:04/01/2077

Financial Freedom Builder - WFG

Specified Amount:$250,000.00
Death Benefit Option:Inc Graded

Financial Values As Of:01/22/2014

Cash Value:$14,231.91
Surrender Value:$14,176.41

Loan Values

Loan Balance:$0.00
Loan Reserve:$0.00
Max Loan Amt Avail:$12,753.22

Withdrawal Values

W/D Anniv To Date:$184.82*
Total Withdrawals:$937.70*
Max W/D Amt Avail:$1,417.64*

Looks like this is the prospectus:https://www.westernreserve.com/site/newwrl/media/public/PDF/performance/MPRWRL005.pdf

Thank you!!
Personal Finance Deals
Evolve Money Billpay: Use debit card to pay billers
Added on : Wednesday January 22nd 2014 01:00:13 PM
g: 0 Posted By: larryc
Views: 226 Replies: 2 Just came across this: Evolve Moneyis a free bill paying service that lets you use the following to pay over 10,000 billers that don't normally accept credit/debit cards:

Visa or MC Debit cards
Visa or MC Gift Cards
Reloadit cards
Evolve Paybucks

Billers seem to include common utilities (electric, gas, water, cable, etc), mortgages, loans, and insurance co's. No, before you ask, you can't use it to pay other credit cards. (Darn!)

If you have a debit card that gives CashBack, this seems like a great opportunity to earn Cash Back that otherwise wouldn't be available. Also seems like a nice way to cash out those rebate gift cards for small amounts.

Couple of negatives though:
- I don't see any way to schedule future payments. You pay a bill; they send it in two days (a few billers offer express pay, which is same day). But there's no way to schedule
- After the recent Target data breach, we should all be wary of sharing our debit card information. Think carefully about which (if any) debit card you want to share with this service

PR release here.

Discussion Deals
bankruptcy is dismissed but credit score is shot
Added on : Tuesday January 21st 2014 12:00:06 PM
g: 0 Posted By: nam9684
Views: 126 Replies: 2 Long story short, my fiance owned a property that was underwater. She began the bankruptcy process, however this was avoided with a bank re-modification program and the bankruptcy was dismissed. Because she initiated the bankruptcy process, her credit score is how <700, although we never follow through with the bankruptcy and was dismissed. Since the loan re-modification (2 years) ago she has had no miss payments and her account is in good standing. She has no other debt other than student loans and the mortgage. What can we do to improve her credit score? Is it possible to get the bankruptcy remove from credit report?
Personal Finance Deals
First Time Home Buyer- looking for advise
Added on : Tuesday January 21st 2014 04:00:14 AM
g: 0 Posted By: saavyfw
Views: 184 Replies: 5 Looking to apply for a home loan for the first timeand want to know who you guys recommend fora lender. I am thinking of Navy Fed or Pen Fed.

-household income- $50K-$60K yearly gross
-excellent credit (780)
-very low debt to income ratio
-looking to buy in northern va (purchase price less than $200K)

Does it matter who I go with? I should mention I am employed with one of them if that makes any difference. Who would you recommend? Or are there better lenders? Couldn't find a recent thread about this. Thanks!
Personal Finance Deals
Financial Advice After Insurance Settlement
Added on : Monday January 20th 2014 06:00:08 PM
g: 0 Posted By: tylerAlwaysAdvancing
Views: 83 Replies: 1 First off, thanks for taking the time to read this and respond with any advice. I am a 23 year old recent college graduate. I am engaged and work as a region rep for my fathers small business he started 14 years ago. I rent an apartment with hopes of buying a home in Summer 14.

Recently I was involved in an wheeler accident with zero fault on my part. I suffered back injuries, nothing major but still very much so significant. I am expecting anywhere from 300k-600k in a settlement. I have a top attorney doing his job, all the information has been provided its in their hands.

I am wanting advice on options for me and my soon to be family here in the near future. I have zero college loans or credit debt. I own my current car (after the accident took mine and left me with cash to buy another). I currently have no investments, savings, retirement funds or anything. I have roughly 10k in the bank and my fiance is a school teacher making a living while having no expenses all through hs/college/and young profession other than a car payment. (scholarship, no school debt) she has a nice sum in her bank. I will make around 50k this year and should increase 15-20% a year after that.

The #1 thing to do is purchase my first home. I believe it is in my best interest to purchase my home by paying cash without worrying about mortgages. My budget we will say is 250k.
After that I am running laps around my head trying to figure out what to do first; insurance, retirement, investments, kids college funds etc. and how much to really dive into that right away.

Obviously I need money set aside if my back injury takes a bad turn later down the road.. I will eventually own my fathers company and insurance won't be easy to come by (fiance dreams of stay a home mom) I want to be as prepared as possible going into this.

Any advice would be appreciated.
Personal Finance Deals
where to get money for downpayment.. 401k or Stock
Added on : Sunday January 19th 2014 01:00:04 AM
g: 0 Posted By: mrrino002
Views: 18 Replies: 0 I'm in the process of purchasing a home... I have a few options that I've been thinking about... First I need $25,000 dollars for a downpayment... I have roughly 75k in my 401k and 100k in company stock that pays a decent dividend and offers ownership incentives during bonus time... I'm 33 years old and have roughly 24 years of working, if everything goes smooth... My question is do I take a hardship loan of the 25k from my 401k, repaying it back over 15 years through a payment plan through payroll deduction, with 4.25% that I repay to myself. Or do I sell the stock, pay the capital gains tax, lose the dividend and ownership incentives, but don't have to worry about a repayment coming out my paycheck?

I was leaning more towards borrowing against my 401k cause you could only borrow from there during a few things and first time home purchase is one... If anything were to happen.. I could always sell the stock and repay the 401k loan..

the other question is... 25K is only 10% of the mortgage loan.. so Im paying PMI insurance of roughly $85 dollars a month for minimum of 3-5 years.. or do I put 50k down, dont have a pmi, but again lose a lot of my life savings and lose out on the dividends and ownership incentives plus the capital gains taxes?.. but have no pmi and $200 dollars less a month mortgage payment?

thanks any help would be great
Personal Finance Deals
taxes for a first time landlord
Added on : Saturday January 18th 2014 06:00:12 PM
g: 1 Posted By: psychtobe
Views: 210 Replies: 3 Savvy FWF real estate investors,

Can you provide any general corrections to my rudimentary understanding based on internet research and a quick book skim?

Property: a second home purchased as a rental/investment property in July 2013, $26,500 down and $160,000 borrowed (documented loan from a family member, 12 years 3.25%). We have a property manager who charges $399 to place a tenant and $100 per month. The property was rented at the end of August 2013.

Expenses and Income (I tried to group by category):

$3000 improvements (new shower/bathroom update)
$3000 repairs
$400 insurance
$1000 taxes
$1800 interest
$600 pre-purchase inspections
$500 settlement charges

$400 pre-rental cleaning, etc
$800 property management fees

$5300 total rent

This is what I believe I understand:
1. I cannot deduct any passive income against my personal income because I am not an active property manager nor a real estate professional; and also because my income is greater than $150k.
2. I can deduct depreciation of the property structure (but not the land) as part of my expenses. I can also deduct the cost of the $3000 improvement but must do so on a depreciation schedule. If I do either of these then I will have to pay tax on the lower cost basis when I sell the property.
3. All of the costs I've listed above are deductible against any income I've received, obviously excepting the purchase price (down payment and principal payment) of the property. I can also deduct mileage for travel to/from the property.

1. Obviously I have more expenses than income in 2013. Am I able to carry forward some or all of those unused expenses for 2014 and later? The internets says I can.
2. Am I correct in understanding that I cannot count any of these excess losses against my personal income for the reasons stated above?
3. Can I carry forward losses to use against future price appreciation of the property such that when I sell it, if it has risen in price, I can mitigate any taxes owed?
4. Are any of the expenses I've listed above 'not acceptable' for the purposes of calculating my losses?
5. If I do depreciate the structure and/or the improvements, and then I move into the property for at least 2 of the previous 5 years before selling it in the future, have I just completely avoided paying tax (because of the capital gains exemption for a primary residence of $500k for a married couple)?
6. Is TaxAct Deluxe going to adequately walk me through my scenario? What are my alternatives? I'm not too interested in finding a good CPA.

thank you!

Tax Deals
Thoughts on significant other staying in school for masters degree?
Added on : Saturday January 18th 2014 08:00:09 AM
g: 0 Posted By: NonReturnable
Views: 21 Replies: 0 My wife will be graduating from Penn State World Campus (online college, but same degree as if she went to Penn State in person) with a B.S. in Human Resources.

We have twin girls who turn 3 in March.

She is debating about staying in school for another 2-3 semesters to finish a Masters program in Human Resources / Employee Relations.

The cost would be about 20k, which would have to go on student loans.

She would finish her Masters. She's worried if she stops now, she may not want to go back.
We wouldn't have to pay for a babysitter, she can do the degree online and stay home with the kids. When she graduates is about when the kids would be going into kindergarten, so daycare cost would go from $250 a week to $100-$150.
Better job prospects and more money when she graduates.
Kids have a mom at home, instead of spending all day at a daycare.

More student loans.
She could potentially find a job where they pay for her degree, but it could be a long ways off, and she would have to work + go to school. Doing it without working means she could keep her GPA higher.
We stay a single income family. I have a very stable job with a well known company, and am not worried about a layoff. But, shit happens.

I don't believe we could pay for the school out of pocket, but I will be picking up book costs, etc. For her BS, books cost around $500 a semester, it hurt pretty bad.

What are your thoughts / opinions?
Do it now and get it out of the way and have a longer higher standard of living?
Or make due with the BS? She has friends with BS degrees that make as low as $15 an hour that are all suggesting she just get the masters over with because she could come out of it and land a job right out of school making 50-60k a year.

Personal Finance Deals
CURealty - Earn cash back on real estate purchase/sale transactions
Added on : Friday January 17th 2014 04:00:11 PM
g: 0 Posted By: mistadeal
Views: 85 Replies: 0 Text

Whether you are buying or selling a home, you can earn a cash rebate back in the amount of 20% of your real estate agent's commission when you start your real estate search with a participating credit union. It is pretty simple actually - here's how I did it:

1. Visited my local credit union when looking for a mortgage to purchase a home. They told me about this program, which they participate in, and they referred me to a participating agent.
2. My agent filled out a form or two for me to sign, and he sent it in to CU Realty for processing at closing.
3. Purchased a home, waited 60 days, and received a rebate check for 0.6% of the purchase price (20% of my agent's 3% commission).
4. Sold my home, waited 60 days, received another rebate check for 0.6% of the sale price.

Overall I received a cash rebate of about $2,500.

-To find participating realtors in the area, you can fill out the enroll form on the site or chat with a live representative during regular business hours.
- This is obviously YMMV based on participation - From the site text, it seems like you might not even need to belong a credit union and can possibly directly be linked to the participating realtors. But since it is CU realty, I feel like you might need to link to a participating CU to be considered, at least initially.
- Iended up actually using PenFed CU for my loan since my local CU could not match their 5/5 ARM terms. PenFed does not participate in this program, but since I started my real estate search with a CURealty participating credit union and considered their mortgage products before choosing PenFed, the rebate was still allowed.
- The CU had a list of participating realtors, I just happened to choose the first one referred to me because he came highly recommended. You can probably be more selective and interview some before you decide on a particular one. I learned to appreciate my realtor during the process because I came across some really flaky ones while looking at open houses.
- I'm not sure about tax implications, I will post a reply once I hear back from them about whether this rebate is taxable income.

Site text:
Our Realtors = Rebate.CU Realty has partnered with some of the top real estate professionals in your area to provide members with an outstanding opportunity to work with a trusted Realtor and earn a substantial rebate all at the same time.

How does it work?Its really quite simple. When you use any agent in our network to buy or sell your home, youll earn a cash rebate equal to 20% of the agents commission. That money is yoursapply it towards closing costs, agent commissions or take the cash outright! Its your choice.*

How much can you save?Use the chart to the right to estimate your savings. The rebate is based on the total home price, not the amount mortgaged.
HomeAdvantageis an exclusive service provided by your Credit Union in partnership with CU Realty Services, the nations leading provider of real estate services for credit union members. Best of all, the program isabsolutely free!To take advantage, simplyenrolltoday. Once youve enrolled, youll have access to all the tools and expertise youll need.
Sample Average CU Realty Home Rebates Home Sale Price Rebate to Member* $200,000 $1,200 $400,000 $2,400 $600,000 $3,600 $800,000 $4,800
*Rebates are awarded to buyers and sellers registered in the CU Realty program before they begin their home search or sale and who use a REALTOR from the Approved Agent network. Examples of rebate amounts shown here are based on 3% commission rate; your agents commission rate may differ. Terms of receiving the rebate vary by state and credit union. Please check with your credit union for specifics on their program.
Real Estate Deals
Penfed 5/5 Arm Refi Help - What to do?
Added on : Wednesday January 15th 2014 08:00:06 AM
g: 0 Posted By: ffactoryxxx
Views: 14 Replies: 0 I am in the process of refi'ing with Penfed and my appraisal came in lower than expected. What would you do?

Appraisal: 225K
Loan Amount Left: $191K
Need 80% LTV

Might be out of here in 3 years

Current Rate - 5.25% - $1,167/mo - 25-26 years left (originally 30 year).

Locked in Penfed - 2.75%

$10,000 Cash to bring down LTV
Monthly Payments = $734
Savings = $433 month

WITH PMI At Current Loan Amount
Monthly Payments = $782
PMI = ~100/mo
Savings = $285 month
PMI Falls off when LTV hits 78%
Personal Finance Deals
First time home buyer/Morgaage questions
Added on : Wednesday January 15th 2014 06:00:17 AM
g: 0 Posted By: NewAtFinance
Views: 96 Replies: 0 Hi everyone, here is my situation:

25k in checking account
40k in house account
53k in Retirement
Age 27
116k yearly salary
No Debts
Credit Score around 780

Lots of student loans
62k salary
~5k in CC dept, working to help her budget better
4k in the bank
No other debt
640 credit score

The first question is, will getting a mortgage with my wife hurt at all given her low credit score and her debts? Credit Karma says if she pays off the card, it will go up. I think she should be able to do this within the next 2 months based on the budget we have her on. Credit karma says she has paid on time about 99.9% of the time. I think the low credit score is mostly because of high utilization, lack of history, and lack of credit.

Is it worth touching my retirement for a house? This will be in the Boston market. Right now we live on the subway, so a ~1000 sq Condo within walking distance to the subway is between 350-400k. We are considering moving out of the suburbs, which would get us almost double the amount of inside space for another 50-100k. I am wondering if its worth touching any of that money to get something nicer.
Personal Finance Deals
Home Equity... How soon
Added on : Tuesday January 14th 2014 04:00:08 PM
g: 0 Posted By: elptrainerny
Views: 148 Replies: 0 I bought my property last June. The LTV (from purchase price) is 76, but with home price appreciation should be 70..

I'm looking for a 75k home equity loan to purchase a commercial property (as a CMBS loan is hard to get for such a small amount)

-Is someone who bought so recently eligible?
-How does a home equity work, if I exceed 80 LTV, so I have to pay mortgage insurance etc?

Real Estate Deals
qualifying for mortage with low income but lots of cash
Added on : Tuesday January 14th 2014 01:00:13 PM
g: 0 Posted By: creamade
Views: 184 Replies: 3 long time reader, first time poster. I hope you wise folks can help advise with my situation!
I am recently married and we are looking to buy a home by mid-2015, earlier if possible. We are in a high COLA in the Northeast where home prices we are looking at are in the 600-700k + range. While these homes still will need more money for renovating, this is a hot neighborhood due to excellent school district. We only want to buy once, buy right, and buy before prices get too high.
The gist is, I am a w2 employee grossing $35k annually. Short 2 year credit history, scores about 720. My wife grosses $55k, excellent 10+ year credit history.
She has a 401k, I have a Roth IRA. We have combined cash assets of $120k+, and currently do not pay rent (live with parents). Only expense other than the usual cellphone/groceries is a car lease.
In addition to my income, I also pick up a lot of odd jobs, tips, eBay/craigslist flips, etc. and earn an additional $30k cash a year.

The concern is, although we have enough to put 20% downpayment, we would still need to borrow at least $500k. We fear that our combined income will not qualify us for this amount at a good rate!
What are some options / obstacles we should consider?
-Do I pay the tax on the extra cash earned under the tables, as a 1099? However, research seems to show that a) a 2-year history of 1099 is needed, and b) alternate sources of income don't count anyways.
-Do we put more money down and borrow less? How much more? 25% is probably pushing our comfort limit assuming a $600k home. (And honestly, a $600k home here is in ugly condition.) This will be presumably difficult to still secure a good loan at a good rate, not to mention cough up all our savings. I think we would still need to keep at least a few months worth of Emergency funds, right?
-Find a lender that will accept my lower income, but pay more in points / higher rate?? Refi later on? We are not very comfortable with this option, as it is possible these lenders/banks may be shady and more expensive in the long run.
-Get our parents to co-sign?
- ???

Real Estate Deals
Need help pursuing home loan - cash rich, credit poor
Added on : Tuesday January 14th 2014 11:00:16 AM
g: 0 Posted By: Jconnell
Views: 185 Replies: 2 I would like to purchase my first home as soon as possible. As a student, I've wasted too much money on renting for too long. I've started reviewing homes in my prospective market and have gotten an idea of what I can afford, how much it will cost me, and ways to reduce the total amount paid over the life of the loan. I've also research local federal, state and municipal payment assistance programs, just to see if I could qualify.

I had some trouble the first year or so out of school and my student loans went into default. I have since paid them off in full but I still have my credit score to show for it. I'm hovering above and below the 600 mark right now. However, I have 20% to put down on a loan of about $180k.

Most of the lenders I've contacted are really looking for a 620 cut off. Admittedly, I haven't looked into a great deal of lenders. I've reenrolled in school and I spend time on this when I can.

Does anyone have some suggestions or tips? I would like to stop wasting my income on rent. I think now is a great time to take advantage of this.
Personal Finance Deals
Need some help for 55 year old
Added on : Tuesday January 14th 2014 10:00:11 AM
g: 0 Posted By: brucesprings
Views: 43 Replies: 0 Here is my situation I just received a cashpay out of $15,000 and I need help how to proceed. I currently live by myself in a single family home with no mortgage, but I had to pay off my ex-wife her half of the home so I took out a HELOC 3 years ago for $165,000 (2.99%)to do that. Since then I have paid down the loan to about $146,000 after taking on a part time job along with my full time job. I would like to get a real mortgage but I do like the low interest rate on my current pay off but I know that rate will go up in the near future. Need some good ideas on what the experts would do.
Personal Finance Deals
New Home Mortgage
Added on : Monday January 13th 2014 05:00:08 PM
g: 0 Posted By: bobaldie
Views: 94 Replies: 0 Wrote a contract for my first new construction home which to be delivered in July. I thought i can apply loan in Mar - April and will have time to get my finances in order but to my surprise the builder said during signing that i need to get a loan commitment with in 30 days. Hmm not sure if that could put me in fix.

1) --> Spouse is W2 employee so income verification is easy, hmm wait spouse current job ending and new job starting Feb 1st (right about the time we might start loan application process). Actually its nothing but re-badge at same work place but with different company. How to handle it during application process?
2) --> I am W2 in our company(S Corp) which is held 100% in my spouse name, I am an IT consultant and i have two others i placed at client so that is the revenue to our company. Now while applying .. do I mention as self employed or W2?
3) --> I draw 75k salary so if i say I am W2 my income shows only that. But having paycheck coming from company with same address as my home address would raise questions? And again if they ask for HR reference what should i do .. give my spouse name ?
4) --> Probably both the W2s put together mayn't be sufficient for the home loan so we may have to put forward the company income for consideration. I heard from many that showing income from business would complicate things by large and one should avoid .. but if we have to show that income .. what to expect? Just additional documentation or its going to be gruesome grilling? What documentation would they ask?

5) While my company is established in 2008, income generation came , after i converted to independent, since 2011. Would that be sufficient history?

6) I had to transfer big chunk from business to personal account and that could definitely raise quires hence we will be forced to disclose business. If business income is considered, plenty of cushion for approval.

Twist 2) I have 2 rentals in my name and spouse has one rental and one primary. Plan to convert this primary into rental when we move.
This new house will be held in both our names - first time. Any issues in obtaining a fifth loan altogether?Any pointers on how to approach.

Am bit unclear on how they treat our rentals during loan qualification process...any pointers? all 3 are occupied with 1 coming for renewal next month and other two in following 2 months. Our current primary will be rented only after we move out. so how all these will be treated for financial burden calculations..

Real Estate Deals
Tax Help - Complicated
Added on : Monday January 13th 2014 09:00:09 AM
g: 0 Posted By: roboaflower
Views: 145 Replies: 0 I will be contacting a professional soon, but wanted to hear your opinion first regarding this situation

I have an IRA account and I recently bought 200 shares of "GOOG" (stock GOOG as an example)

I have a non retirement brokerage account which already have 200 shares of the same "GOOG"

I wanted some cash, but did not want to cash out from my IRA account but I also do not want to pay capital gain tax by selling shares from non retirement account and incur capital gain tax.

If I roll over 200 GOOG from IRA account to my non-retirement account (technically a distribution, but more of a short term loan), move the original 200 shares of GOOG from non-retirement account to IRA account (in the process reversed the rollback within 60 days in the IRA account), sell 200 GOOG I just moved from IRA account and cash out ( with recent purchase date in IRA brokerage account and have almost no stock appreciation). Can I save capital gain tax ? Or does it fall under "wash rule" ?

Tax Deals
Paying off mortgage and change of credit score
Added on : Monday January 13th 2014 08:00:12 AM
g: 0 Posted By: ArmchairQB
Views: 195 Replies: 1 A few years back I rolled my mortgage in to a PenFed 5 year home equity loan for the lower rate and to accelerate paying it down. I recently paid off the loan to Penfed. I have been using CreditKarma since last summer to keep an eye on the scores that they present. I had expected with the payoff that I might get a bump in the scores. To my surprise when I logged on yesterday, the first day that CreditKarma reflected the payoff, my VantageScore dropped 61 points! This is far lower than my score has ever been. The payoff was the only change on the site. They do list one account reported as closed, which is the PenFed one that was paid off.

Anybody else ever have this happen to them?

Personal Finance Deals
Financing a car and a house this year. In which order?
Added on : Sunday January 12th 2014 01:00:05 PM
g: 0 Posted By: EvilPuppy
Views: 76 Replies: 0 I'm looking into getting an used car which I may qualify for a pretty attractive rate through the manufacturer. But I'm also getting a house in a few months. If I get the car first, would the home mortgage loaner see the car loan on my credit report and think I'm a bigger risk thereby give me a higher rate? Or does it even matter?

Car Loan Amount: $15,000
Car Down Payment: $3,000

Home Loan Amount: About $500k
Home Down Payment: $200k
Personal Finance Deals
Confused - do I need a will and/or estate planning?
Added on : Saturday January 11th 2014 04:00:05 PM
g: 0 Posted By: guraaf
Views: 30 Replies: 1 Hi all,

I am a US permanent resident (green card holder) who moved to the US about 9 years back. I have two kids less than 10 years of age. I am trying to understand whether we need estate planning and/or a will. Right now, I manage all the finances, taxes etc. myself but recently discussed with two certified planners and the said that I absolutely need a will and should get an estate made.

The idea is that if my wife or I were to die then our assets will either go to the state or our kids will have a huge problem and a tax burden. Is that really the case here? I can't seem to tell for sure. We have:
- bank checking accounts
- brokerage accounts
- house that is paid off (no mortgage)
- no other loans
- 401k accounts for both
- Roth IRA for both

All my accounts are joint owner with rights of survivorship and my two sons are 50% each beneficiaries. So why do I need a will if I don't want to give money to relatives or charity? I live in Texas, BTW. The two cases that I am interested are: a) my wife or I die, b) my wife and I both die. Wouldn't the money be simply available to the surviving spouse or the kids as the beneficiaries? Will there be a tax impact? Why? The savings are already taxed.

Thanks for any help and insight.
Personal Finance Deals
Planning for temporary loss of income
Added on : Saturday January 11th 2014 09:00:14 AM
g: 0 Posted By: RedCelicaGT
Views: 87 Replies: 1 I'm a 29 year old student. I also work full time and have no debt other than my mortgage. Through employment, Igross 88K annually including overtime.

For certification reasons, I need to take a 2 yearunpaid training after I finish school. At the end of my training, my income will be 120K-140K with 10 year potential to 190K...So the incentive to do this is clear.

I have managed to avoid student loan debt through employer tuition reimbursement. At the end of my classroom education and research I will be "employed" in a 2 year unpaid training/residency. It's good I have some time to prepare for a loss of income, but at the same time a bit nervewrecking to know I have a family to take care of while not having any income. With small children, my wife as a school teacher will not net enough money to warrant working and offset daycare. Children must come soon. Medically speaking that is the only choice. Right now we have an infant. I'm currently saving about $900/month including matched 401K contributions.My mortgage PITI is $1380 with $400 going to principal so that's kind of like sending the money to savings at this point.So far, here are my assets and liabilities:
Asset Value Loan Balance House 250K 216K 401K 56K NA Liquid 25K NA Car 1 12K NA Car 2 10K NA Total 345K 216K Net 149K
Here are my planned expenses during training:
Expense Amount Rent 700 Car/health Insurance 400 Utilities 100 Food/Baby 600 Gas 150 Life 500 Monthly Total 2450 2 year total 58800
I'd prefer to not burn through my life's savings in two years. I will sell the house which will net about 25K after expenses. Liquid+house proceeds can almost carry us through the whole time. I really don't want to dip into 401K. I can sell the cars and drive an old beater if necessary but I'd prefer to keep the cars and have reliable transportation.I don't feel bad taking some government assistance if I qualify during this time period since I've been paying taxes and have not been getting government assistance while in school. I'm considering moving all my liquid over the next few years to roth IRAs so we can qualify for WIC/SNAP and pay for most everything from the IRA.

What would you do if you were me to prepare for the loss of income? Is it unethical to plan in such a way to be able to qualify for government assistance while having a substantial amount in retirement accounts?
Personal Finance Deals
High interest loan
Added on : Wednesday January 08th 2014 06:00:07 PM
g: 0 Posted By: tjtjking
Views: 136 Replies: 1 Hi, I had a friend showed me a website a few years ago, it's like you can put the money there and someone will loan you money, the interest rate is like 20%-30% yearly.

Anyone had this kind of experience? I am also thinking what if someone doesnt return the money back to u, i know you'll put a bad credit on them, but are you going to lose that money permanently?

Question Deals
Questions for the AOR / CC churner pros
Added on : Wednesday January 08th 2014 01:00:07 PM
g: 0 Posted By: Mattattack
Views: 57 Replies: 0 Please bear with me, I am new at this. I learned everything I know about AORs by reading FWF up until this point.

Old CCs (will keep for account age)
Statefarm CC (25k limit) (opened 2009)
Penfed platinum rewards (7.8k limit) (opened 2010)
Chase Freedom (5k limit) (opened 2010)

New CCs (I already have these and I have received or am in the process of receiving the bonuses)
Chase Southwest visa (8.5k limit) (received 50k bonus + companion pass back in September) (opened May2013)
Chase Southwest business visa (5k limit) (recently closed - see below) (received 50k bonus back in September) (opened May2013)
Amex blue cash preferred (7.8k limit) (opened May2013)
Discover IT (6.5k limit) (Opened November 2013) ($150 sign up)
Capital one Quicksilver (7.5k limit) (will keep for 1.5% on everything) (Opened November 2013) ($100 sign up)
Citi thank you preferred (6.5k limit) (Opened November 2013) (30k TY point sign up)
Citi dividend (4.2k limit) (Opened December 2013) ($100 sign up + the $300 from the first quarter categories)

Total Credit line 78.8k

Just got a mortgage March 2013 (30yr fixed 3.625%) and dont anticipate needing a loan anytime soon. (Was told by my mortgage broker I had a 745 at the time)Credit Karma currently has me at a 687. I havent otherwise pulled my own credit.


1. Long story short a payment was missed on my chase south west business visa. Im 99% sure I requested the payment to be made and the money was just never taken from my checking. They waved the late fee but, the CSR said the late payment was most likely already reported to credit agencies. In the moment I had them cancel the card because I already had the bonus and didnt think I needed it anymore. This is my first missed payment on a CC. Is this a big deal? My plan is to get my free credit reports in a month or two, see if it appears, and then dispute it. It hasnt shown up on credit karma yet.I probably should have kept this card to transfer the line to a different business card (chase ink) but, its too late now.

2. Is there any reason to keep my personal chase southwest visa? Do I cancel and request they move the credit line to my chase freedom? So, I can churn the card again in the future? I had the personal and business plus cards. When my companion pass runs out I could get the premier cards in 2015. Then eventually get the plus cards again in the distant future? (assuming any 50k point offers come up in the future)

3. It there any reason to keep the citi thank you preferred card after I get the bonus? Ive only received 10k of the 30k points so far. I took the first 10k points as a $100 Staples GC to try to monetize it buying free after rebate items but, I have yet to find a free after rebate item in stock. (Im a Staples noob)

4. Is there any way to get the annual fee on the amex BCP waived? Do I keep it just to get the $285 each year? (6% x $6000 = $360 - $75 AF = $285)

5. Any advice on how long I should wait until I do another AOR? (I know the two Ive done were only 3 cards each and were weak but, I have yet to be denied a credit card)

Any other comments, tips, suggestions would be appreciated.
Discussion Deals
PSA: Qualified Mortgage Requirements effective January 10, 2014
Added on : Tuesday January 07th 2014 07:00:11 PM
g: 0 Posted By: boxerbrief
Views: 0 Replies: 0 I did a search and no one has posted this yet. Some major changes are happening in the mortgage industry, and I just thought the community here should be aware. Effective January 10, 2014, the CFPB will be implementing the Ability to Repay and Qualified Mortgage Standards under TILA (Regulation Z). While most lenders may still originate loans that don't meet the standards, those who originate QM loans will have Safe Harbor legal protections meaning a borrower who got a loan and defaulted can not sue the lender for originating a bad loan (example: the borrower in a QM loan can not claim the income was not sufficient to cover the expenses so the loan should not have been originated in the first place). Some of the new rules for QM I pasted below, but you should go straight to the CFPB website for the actual laws and how it may impact you if you are looking to get a mortgage loan in the near future. Note that a 43% debt-to-income ratio is the new ceiling in the law as I know that is a common question on the forum about qualifying for a loan. It is hard to predict how different lenders will react to this, but I know that one particular lender will only originate QM loans as of January 10th and added on additional reserves and residual income criteria (not part of the law) in response to this law since lenders can now get sued for bad loans. I know a lot of you will be surprised that they actually have to make a law for the ability to repay aspect, which I agree should be something every lender should be doing already in the first place.


Mandatory product feature requirements for all QMs Points and fees are less than or equal to 3% of the loan amount (for loan amounts less than $100k, higher percentage thresholds are allowed); No risky features like negative amortization, interest-only, or balloon loans (BUT NOTE: balloon loans originated until January 10, 2016 that meet the other product features are QMs if originated and held in portfolio by small creditors); Maximum loan term is less than or equal to 30 years.

=11.5ptAbility-to-Repay Determinations=11.5pt. The final rule describes certain minimum requirements for creditors making ability-to-repay determinations, but does not dictate that they follow particular underwriting models. At a minimum, creditors generally must consider eight underwriting factors: (1) current or reasonably expected income or assets; (2) current employment status; (3) the monthly payment on the covered transaction; (4) the monthly payment on any simultaneous loan; (5) the monthly payment for mortgage-related obligations; (6) current debt obligations, alimony, and child support; (7) the monthly debt-to-income ratio or residual income; and (8) credit history. Creditors must generally use reasonably reliable third-party records to verify the information they use to evaluate the factors.
PenFed Now Offering Rate Reset Protection on Select Mortgages
Added on : Tuesday January 07th 2014 10:00:17 AM
g: 2 Posted By: desikid
Views: 246 Replies: 1
Up to five rate "borrower selected" rate resets over the life of the loan mortgage
No fee to reset the rate
Provides an alternative to the refinance process
Loan maturity date remains the sameno new 30-year amortization required


General Economics Deals
Nine West Sloane Pull-On Bootie $49.99 FS @ Ninewest Via Ebay
Added on : Tuesday January 07th 2014 06:00:09 AM
g: 0 Posted By: iLetTheDogsOut
Views: 231 Replies: 1 http://www.ebay.com/itm/Nine-West-Sloane-Pull-On-Bootie/25138445...
Shoes Deals

eBay Coupons
Mortgage loan advice 120K Gross 20K down pay
Added on : Monday January 06th 2014 03:00:09 PM
g: 0 Posted By: tips40
Views: 189 Replies: 0 Hi All,

Currently I make around 120k (Gross), with previous Gross salary 105K on W2, I have good credit score too.
what are my options for mortgage around 450 K with 20k down payment , I don't have any loan apart from
2 -- 3k of revolving credit on credit cards. residing 20171 Virginia, looking for Town home / Single family around this area.
Appreciate your suggestion and help.

Thanks in advance..
Real Estate Deals
$194.25 ($548, 65% off) Kate Spade chambers street sloan
Added on : Sunday January 05th 2014 04:00:04 PM
g: 0 Posted By: hensonharry
Views: 176 Replies: 0 kate spade offers the kate spade chambers street sloan for $194.25 via code DECEMBER25 with free shipping
Purse Deals

Kate Spade Coupons
Refi 2nd mortgage only - any lenders willing?
Added on : Sunday January 05th 2014 12:00:02 AM
g: 0 Posted By: finalpendragon
Views: 1 Replies: 0 Are there any lenders who would be willing to do a refi on a second mortgage, or maybe do an HE loan that would pay off the original 2nd? Okay, I know the obvious question is "Why not just refi both loans together?". You see my second mortgage has a rate of 8.25% while my first mortgage was refi'd last year at 3.5%. With the current market rates being about 4.5%, and the second mortgage being so much smaller than the first, it doesn't offer me any advantage to combine the two into a higher rate. Here are the numbers:
first mortgage (3.5%) $330k second mortgage (8.25%) $48k LTV 75%
Because the LTV is less than 80%, it seems plausible to think that I can refi or use an HE to pay off the second lien. But is it? I went through the interview process with one lender already this week only to be turned down. It's a pretty time-consuming process! So I'm wondering if it's worth trying again with other lenders or if I'd just be wasting my time. The few other threads that touched on this subject were very old. Does anyone know of a lender who's willing to refi a second in the current market?
Paying for grad school with credit card?
Added on : Friday January 03rd 2014 02:00:07 PM
g: 0 Posted By: brfitzp
Views: 98 Replies: 1 Hi, I just wanted to get some opinions on this.
I want to get my masters degree and the school i want to go to costs 3250 per 6 month term, a flat fee

I was considering getting a 0% for 18 months card like the citi simplicity in order to pay for school and pay about 542 a month for the next 18 months and walk away from school with a degree that's paid for without any interest.

I work a full time job and shouldn't have much of a problem paying that much per month, my idea is even if i don't pay the full 542 but instead pay 442, that would leave me with 1800 left to pay with intrest which wouldn't amount to much if i continued paying for another three or four months.

It seems like a much simpler and possibly cheaper method than paying for a student loan. Any input on this?
Credit Deals
Whats Better: Dealership Financing or PenFed (same rate)
Added on : Friday January 03rd 2014 10:00:10 AM
g: 0 Posted By: sbrickman29
Views: 23 Replies: 1 Searched and could not find any existing threads on this topic.

I'm looking to purchase a vehicle and was wondering if there are any known pros/cons for going with the dealership/manufacturer financing or PenFed if they are both the same exact offer (apr of 0.9% 60 months, etc). Have never had an auto loan from PenFed so don't know if there are good things or bad things about using them instead.

Appreciate any insight. Thank you!
Personal Finance Deals
g: 0 Posted By: FWpep
Views: 158 Replies: 4 So if you read a financial article today, whether it is bullish on the market or bearish on the market you will see a gazillion comments in the comment section of the articles each making the opposite case. Since I think most would agree that people here in the FW Finance forum are typically smarter (financially speaking) than most, I thought the folks in this community could put forth their thoughts on this subject.

I recently watched some youtube videos of the financial coverage about a week before the crash in 2008 (Sept. 14-19 2008), this was just before the huge slide down. I found it to be a good exercise because I had already forgotten just how bad it got even before the huge slide down. You could actually hear the fear in the tone of the usually very optimistic anchors and analysts. I had mistakenly thought that they remained optimistic up until the point the market plummeted but that was not the case at all. They were talking financial armageddon days before the huge slide really got underway.

So in hindsight it is easy to see that the housing market down turn, bad loans, and perhaps most importantly the crisis in confidence with bad ratings on the mortgage backed securities would end badly. A whole cascade of bad things happened when that began to unwind. That is the short version of course.

It seems today that we are in much better shape. The economy is supposedly fairly strong, and headed in the right direction albeit slower than hoped and the stock market is hitting new highs every other day. However, stock markets cannot go up forever. Not asking for a prediction of when (but you can include if you'd like) but more of a big picture look knowing all we know about the Fed's monetary policy and general economic conditions and trends. I would have thought that we would have widespread inflation right now, but that is not the case and I don't really know why there isn't massive and widespread inflation. So,

1. What do you THINK will cause the next downturn?

2. Do you think it will be a mild and orderly downturn OR a major downturn?

3. What are you doing to protect/hedge your entire financial portfolio?

Investing Deals
Get a parent loan or stop maxing out 401K?
Added on : Thursday January 02nd 2014 05:00:14 PM
g: 0 Posted By: helloagain
Views: 72 Replies: 4 My son is going to college this fall and the estimated family contribution is over $40K. My wife and I are currently max out on our 401K ($17.5K each). I do not see how I can afford $40+K per year without either getting a Federal parent loan or stop maxing out the 401K. Any recommendations?
Personal Finance Deals
Mortgage loan ?
Added on : Monday December 30th 2013 04:00:07 PM
g: 0 Posted By: georgeojungle
Views: 104 Replies: 0 My wife and I live in West TN and are in process of receiving our first mortgage. TN is a spousal state, so we applied for the loan in just my wife's name. My wife was approved w/ conditions. It is my understanding that all debt in my name would not be included in her DTI. I refied our cars in my name to eliminate any debt in her name, but now the underwriter wants to see the sourced funds for the payoffs. I explained to the mortgage consultant what I did and why, but he seems to think that this will be included in her DTI which would screw us. I cannot be on the loan with such a short work history. Anyone have experience or knowledge in this situation?
Personal Finance Deals
Getting Married- Merging Finances... tips?
Added on : Sunday December 29th 2013 05:00:10 PM
g: 0 Posted By: FFGuru
Views: 183 Replies: 5 This year I'm excited to be getting married! When it comes time to merge the finances though, we want to do it smartly & make sure we don't do anything that could hurt hour credit or ability to open our own business. Looking for tips & tricks from fellow FW'ers before we get married.

She: Credit in the low 700's, but a ton of student loan debt from med school, slight credit card debt, but no bad marks. Student loan repayments are income based, and the principle will be forgiven in 20 years.
Me: Credit in the high 700's, very little debt aside from an above-water mortgage. Eventually I'd like to open my own business, which will require more loans.

Based on her loans, we plan to file taxes married filing separately--- in effort to maximize the benefit of the loan forgiveness.

We want to maximize our ability to start our own businesses, get loans in the future, and to not do damage to my credit. Are we safe to add each other to bank, & CC accounts, and loans without hurting my credit? Or should we keep our finances separate?

Any other tips about merging our finances?

Personal Finance Deals
g: 0 Posted By: EatenByGrue
Views: 182 Replies: 4 I am curious if, given my situation, there may be more options open to me than an average first-time home buyer.

- I'm 40 years old, never owned a home, am debt free, and I live in the Silicon Valley of the San Francisco Bay Area.
- I have $150k+ in cash, $2.2M+ in non-retirement investment accounts, and $600k+ in retirement investment accounts (401ks, Rollovers, SEPs, and a Roth).
- My three FICO credit scores are all over 800.

I recently attempted to buy a first home -- my offer was not accepted, but I did have my "eyes opened" (partially) to the process of getting a mortgage by going through a rigorous (some might say proctological) pre-approval process.

I'm still trying to wrap my head around a mortgage's "closing costs" (in my case it was $16k+ for a $625k conforming-for-high-cost-area 30 year fixed loan. I was planning to put 25% down on an $850k house).

A few of the closing cost charges seem reasonable, but things like "loan origination fees" for processing paperwork seem excessive to me.

My mainreason for "borrowing" instead of "paying cash" is to take advantage of the "home mortgage interest deduction" to reduce my annual taxable income. A close second reason for not wanting to pay cash is to avoid creating taxable events by selling $500k+ worth of stock (I rarely sell stocks or funds, I tend to only buy them... So I'd have to sell a lot more to pay capital gains). Lastly, "Opportunity cost" doesn't mean much to me (but I'd take advantage of it for money not tied up in a house).

As I see it, I'm offering to borrow money from a company at 4+% -- seems like a good deal for them. I'm willing to "secure" that loan by using the rest of my nest egg.

If possible, I'd like to avoid paying for "the privilege" of loaning "a great credit risk" like me money. Am I being out-of-touch and unrealistic here?

I've heard of "no closing cost mortgages" where the lender eats their costs to maintain a relationship with the borrower. How do I go about developing one of these relationships?

Real Estate Deals
Underwater Mortgage Options
Added on : Sunday December 29th 2013 11:00:05 AM
g: 0 Posted By: Benjamin75
Views: 56 Replies: 0 General info.

1st mortgage with PNC bank
balance $55,472
payment $742.74 (including tax/insurance)

2nd with Huntington bank
balance $33,311.51
payment 359.58

owe 88,784.12
payments 1,102.32

house is a duplex, built in 1922 in Ohio.
the county for tax purposes had valued the house for $97,800 before the market collapse, then the value dropped to $78,000. In 2012 the county raised it back to $98,700

i would like to move, my neighborhood has declined, and quite frankly, I don't like where I live. I could have a nicer apartment for half of what I pay now.

Currently, i bring home JUST enough to pay the mortgages and other debts (minimum payments) to be one of the working poor. Just barely enough left after bills for food & gas. Anything extra, or unexpected ends up on a credit card.

i was approached by PNC and told my mortgage was eligible for a HARP refinance, since the loan was owned my Freddie Mack. When they ran the numbers, I was told if I paid close to $700 up front, I could reduce my interest rate and lower my monthly payment by about $100. Since I didn't have $700 laying around! and it would take 7 months to even break even, I did not go further with it.

i approached Huntington about refinancing my loan with them. It has an interest rate of 10% and I had to have my mother co-sign for it. I was hoping to get her name off, and possibly a lower rate. Huntington surprised me, by telling me I may be able to get one new mortgage from them, that payed off both of my loans, put it all in my name alone, and would save me $100-$300 per month depending on the interest rate.

Huntington paid for an appraisal, and it came back at $60,000.
Huntington isn't offering to do anything for me now.

from what I've read, I'm not eligible for any of the modification programs because Huntington isn't a participating bank of HAMP, and because I have a co-signer.

so do I have any options?

Short sale: doubtful Huntington would agree to take what little money was left after PNC took their money. Seems they'd rather go after my retired mother.

Walk Away/Foreclosure: ruin my credit, Huntington still pursue me; ruin my mothers credit and have her pursued also.

Real Estate Deals
Best Car Loans
Added on : Sunday December 29th 2013 10:00:05 AM
g: 0 Posted By: cameron2003
Views: 138 Replies: 1 I'm surprised there is not a thread on this. I recently bought a car with a 2% loan, and then found out Alliant has a 1.49% loan. (Thanks Polaris).

New car rate
Used car rate
Date Checked
Alliant Credit Union

General Economics Deals
Grad Student Goes to Extreme to Pay off Stu Loan Debt
Added on : Sunday December 29th 2013 06:00:06 AM
g: 0 Posted By: tolamapS
Views: 97 Replies: 0 From yahoo:


Duke Grad Student Secretly Lived in a Van to Avoid Debt.

- undergraduate major in History and English, racks up $30K in debt,
- upon graduation, gets rejected from 25 paid internships,
- has a stint pushing carts at $8 / hour at HomeDepot; gets depressed,
- goes to Alaska to work in an environment with no stores within 250 miles, no cell service, no place to spend money, and room / board paid; saves everything earned, and uses to pay off stu debt,
- enrolls in grad school at Duke, but lives in a van to avoid taking additional debt.

Read the rest of the story to see play-by-play of how he managed to live in the van.

"Kudos" to Duke University for "worrying" that he might hurt himself once they found out he lived in a van. Hence, they asked him to sign a waiver that if he got hurt, he won't sue the University. Nicely done, Duke University!
Discussion Deals
Applying for different mortgages at once?
Added on : Saturday December 28th 2013 09:00:05 AM
g: 0 Posted By: nickboats
Views: 7 Replies: 0 My Brother seems to think he can get two different mortgages on two different properties at the same time without telling each lender up front. He's going to get one mortgage for a primary residence (which he is going to live in) and a second investment property. He is going to put down 25% on the IP. He seems to think he can submit the applications on different properties with different lenders on the same day and because of the lag in credit reports, MERS and public records that he can close on a couple of them at once. I've tried to tell him this could be mortgage fraud since he is not telling each lender about the other loan applications. He thinks because the mortgages are on different properties, not one, there's no problem. I guess he figures if he tells them upfront it may affect his score, his qualification or his DTI (he makes plenty). If asked about multiple inquires he claims he'll just explain he's shopping for the best rate. I keep telling him to just put all the honest info on the all the applications, that's he's buying different properties at once. Aren't the lenders going to find out some how that he's trying to do multiple mortgages and didn't disclose it on his applications? If one property closes and another closes 5 days later isn't there a way for the second lender to figure out he just got a mortgage on another property and deny him?

Real Estate Deals
car loan strategy
Added on : Saturday December 28th 2013 08:00:07 AM
g: 0 Posted By: cameron2003
Views: 86 Replies: 3 I have a $40,000 car loan at 2% over 7 years. Its a simple interest loan. I know I can pay bi-weekly and save money, but that is partially (or maybe mostly) because I am paying more annually.

I am interested in saving money on interest payments, while at the same time not increasing my annual outlays to my lender.

I know it must save on interest just to split the monthly due down the middle and paytwice a month (not bi-weekly) since interest is compounded daily. Or even do the same thing 4 times a month (if my lender can stand it).

I cannot find a calculator or any source to help me figure out what the savings would be, or if there was another strategy that was better and basically did not cost extra, or cost much. Adding $20 to my monthly payment is another way to do it on the cheap.

Anyone ever do this?

Personal Finance Deals
g: 0 Posted By: CptSavAHo
Views: 120 Replies: 4 I'll start by saying I already gave the employee the 'you need to lawyer up' advice, and the employee is working on finding a qualified attorney. I'll do bullet points to make this easy.

-Employee went into default on his house
-Primary mortgage at 80% got a modification program to forgive past due principle and reduce interest rate. Employee has been current on it since the modification over 6 months ago
-Secondary mortgage at 20% went into default, foreclosure, and was sold at auction (I have no idea how this happened, if employee ignored notices or it was supposed to be covered by PMI, or why it wasn't bundled into the loan modification)
-Ruthless company now owns the secondary note and is trying to force him out of his house. It will be easy profit for them as the property has appreciated in value.
-Ruthless company gave employee written notice today to be out by the 29th. After speaking with them they extended it until Friday, the 3rd, and then they will pursue court eviction.
-Ruthless company is trying to force him to sign over payoff information for the primary note. They claim to have the deed for the property and that the court will foreclose on the primary note and give them title.
-This is Denver County, Denver CO.

I have no idea if or how the secondary note sold at auction can force foreclosure and eviction. It sounds to me like they are trying high pressure scare tactics to convince employee to sign over the primary note so they can pay it off and then take the property. This is way more complicated than I am familiar with.

The way I see it employee has 3 options
1-Cooperate and possibly lose the house to scumbags but keep his credit and public record clean.
2-Try some kind of cash fire sale on the property, using whatever attorney to cash out on the increased value.
3-Retain a lawyer, fight it tooth and nail, and be hounded by the scumbags.

I encouraged employee to go route #3. Have someone home at all times, don't answer the door, and install some serious heavy duty locks.

Personal Finance Deals
Quicken Versions 1/2 Off - Deluxe $37.50 FS thru 12/30
Added on : Thursday December 26th 2013 08:00:10 AM
g: 0 Posted By: gelatinouscube
Views: 225 Replies: 0 Link

Deluxe - $37.50
Premier - $52.50
Home & Business - $57.50 ($47 @ Amazon Link to thread)
Rental Property Manager - $82.50

Tax Software Deals

Quicken Loans Coupons
HELOC for new construction??
Added on : Thursday December 26th 2013 06:00:08 AM
g: 0 Posted By: palongee1
Views: 47 Replies: 0 Hi everyone, ive searched hi and low for some answers pertaining to my situation and so far have found little help, hopefully someone here can give me some direction, here goes
I own a property outright, several acres zoned agricultural. The property was appraised for 500k in 2009.The property has a old home and outbuildings (barns, shops, etc) The old home was built in the 1880's whichwas apparent once I started taking a hard look at the structure underneath the home.From the exterior and interior it looks fine. My original plan was a complete rennovation but the costs are so excessive that im leaning toward building new on the same parcel then removing the old house once the new home is finished. I have looked into a construction loan which requires a contractor and a pretty shorttimline. I have access to all the sub contractors I would need to contract the build myself as well as doing some of the work myself. My concerrns are if I were approved for a heloc and built the new house then removed the old house could I potentially be in a trouble with the bank? The new home would obviously be bigger and worth much more then the existing structure, im just concerned that I could be insome kind of violation of the loan?My reasons for wanting to build this way are 1, I dont want to pay a contractor to do what I can do. Also,my definition of "good enough" is much different then what some of these contractors ideas are. 2, I dont want to be on a stringent timeline to complete the build, I have certain guys I would like to use for certain subs as well as I would like to do some of the work on my own. My biggest issue is financing. Im looking to use some cash but id need to borrow appx 165k to get the project done. Its a unique situation i know, any help anyone could give me would be much appreciated! Thanks for your time! Mike
Personal Finance Deals
Tax Benefits on investment outside country
Added on : Tuesday December 24th 2013 07:00:10 PM
g: 0 Posted By: FWFfollower
Views: 22 Replies: 0 I want to make investment in real estate (construction) for my first home. It will be outside US. This will be from my savings and am not planning to take a loan. What tax deductions can I make use of?
I am guessing energy saver investments and property taxes are straightforward. What other things can I use? I also see home improvement in publication 936. Could this be used in any way?

Question Deals
Financial (Debt) Advice for a New Home Owner
Added on : Tuesday December 24th 2013 05:00:08 AM
g: 0 Posted By: dbess2013
Views: 60 Replies: 0 Hi all,

I am a long-time lurker, first-time poster; love your advice on this part of the forum and after lurking for quite awhile, I figured I would post and see what ideas I can get about my financial situation which has been a little hairy since my house purchase. The basic story here is that I purchased a foreclosure home that was "too good of a deal" to pass up. Indeed, it still is a great deal but I was burned by the bank in regards to obtaining "fixer-upper" funds. I was told by my originator that upon purchase, I would be able to borrow under a second mortgage right out of the gate which turned out to be entirely untrue due to the grant I received which will be forgiven in two years. Lesson learned.

The home upon purchase was listed for $50k at auction, I placed a bid at $45k with theseller paying closing costs (truly paying, not rolling into the loan).I was then able to obtain a 10k state grant for downpayment assistance since it was a vacant home which leaves me with a total mortgage of about 34k. The first valuation came in at 78k prior to my repairs. Judging by the area and what I've been told by a couple realtor friends, they believe it would fetch about 120-125k in today's market.

The good side is that its a great place with a huge yard in a city which doesn't usually have both of those attributes. It's an up and coming area so the value will likely rise pending on the market. The bad side is that since I was unable to get a second mortgage for repairs, I now am saddled with some debt that came from necessary repairs to make it liveable.

Current Debt:
Credit Card: 5k @ 15.9%.
Lowes Credit Card: 6k @ 5.99%
401K Loan: 6K @ 2% or so(to myself)

I've always been an anti-debt kind of person and I would really like to jump out of this hole ASAP. It was a seize the moment type purchase which may or may not have been a good idea given my hate of debt. My current plan is to try for a balance transfer card with 0% for 18 months and then add a second mortgage after the grant is forgiven in 07/2015 or the Penfed Promise for the 3.9% for life balance transfer and forget the mortgage. I'm unsure if I'll be approved for the Penfed as my credit score after all this house buying and whatnot is at about 730 (previously 770).

Of course, the ideal situation would have been to have cash to do these repairs and I am half-way kicking myself for doing it. On the flipside, I'm paying far less even with the high interest debt than I was renting.

Anyone have any other ideas for paying less interest with what I have going on?
Personal Finance Deals
g: 0 Posted By: vnuts21
Views: 87 Replies: 0 Pardon the lengthy post, but I wanted to get some general advice on how best to prepare for buying our first home in the next few years. Ages: 26 (Me), 27 (Her).

We will be married in September, 2014.

Me - $78k/yr
Her - $76k/yr
Average take home pay: ~7200/mo
Other income: Credit Card/MS shenanigans - ~$500/mo

~5000/mo (includes rent, student loan payments, Roth IRA contributions, food, traveletc) (high cost of living area)

Currently not maxing retirement savings- only contributing max Roth IRA (5500 each) and minimum to get company match. This will change once student loans are paid off (~9 months)

$40k in 401k
$26k in Roth IRA
$5k Liquid

$35k in 401k
$10k in Roth IRA
$9k Liquid

Me - $40k in student loans (3.5%)(being generously paid off by my brother at $14k/year, and by me at a rate of $4k/yr) - will bepaid offin ~2.5 years
Her - $10k in student loans (5% average) (will be paid off in 1 year)

I will most likely be taking a temporary new job in the DC area for 1 yearwhich will greatly increase our savings ability. The job covers all living expenses and provides a daily food stipend, allowing us to live rent, utilityand food-free (will end up saving ~30k extra over 1 year) (this assumes my fiancee will be able to find a job in DC at the same time). Paying off the student loans over the next year or so would also free up almost1000/mo.

Job prospects:
Overall good - we are both ambitious engineers

Me: BS (high ranked private university), MS in Mechanical engineering (no-name state school). Currently working for US Government (decent job security, but will most likely be leaving after the DC position in search of something higher paying and more challenging).
Her - BS in Manufacturing Engineering (high ranked private university), MBA (decently ranked private university) in May 2014. Currently working for amedical instrumentcompany (decent job security, but overall underpaid given her position, experience level). Will most likely be looking for a new job coinciding with my DC position.

2-3 year goals:
-Live in DC for 1 year
-Live in California for 1-2 years
-Settle down in northern east coast (NY, PA, VA, MD etc)(near family) in ~2017 and purchase a home (~300-350k range). I'd like to be able to put 20% down onthe house. This would require 60k, which is easy to do even now (if saving for a few months and tapping into Roth IRA), but I'd prefer not to touch the Roth accounts to do so.

Here's my questions:
- How to handle manufactured spending/credit card sign ups in the 2-3 years leading up to buying a house? Our credit scores are excellent, and we have leveraged those scores into great vacations, and a lot of extra income from manufactured spending techniques. When should we stop the spending, so that lenders do not ask questions and are not put off by the ~20 open credit cards per person?
- How to best stagger the accounts to get approved for a mortgage? I know the lenders want to see an account capable of paying off the mortgage and will scrutinize every transaction dating back almost a full year. Would opening a joint account and having the paychecks deposited into it be ok? I would keep all other accounts (rewards checking, bluebird, etc) separate. This would be our only joint account from the time we are married until the time we buy a house.
- Any other words of wisdom, advice on how to improve our financial situation?

Discussion Deals
Yet another Mortgage vs. HELOC question
Added on : Monday December 23rd 2013 11:00:07 AM
g: 0 Posted By: panmet69
Views: 529 Replies: 14 So I'm thinking about purchasing a house within the next ~1-3 months. I have enough for the 20% down no problem. I've been doing a lot of reading on the Mortgage vs. HELOC question and it seems very time sensitive (what advice everyone gave 12 months ago might not apply today...hence I'm asking the question) My income is 93,000/year. I am currently renting an apt for $1700 a month (with the girlfriend, each pay $850). Single (no head of household, no kids , no divorced wife, crazy uncle, etc. etc.) Girlfriend will be living in the house with me , she will pay rent (House in my name, no gf money included / needed for this).

My max purchase price is probably 300,000. I have access to a personal loan where I could pay "cash" and then obtain some type of loan on the house to pay the personal loan back. For arguments sake, lets say I can put %25 (75k) down. I have comfortable emergency funds, etc. etc. Do I...

1. Ignore the personal loan, take out a regular mortgage (with 20% down)
2. Pay cash , obtain a HELOC , pay person back.
3. Pay cash, obtain line of credit
4. Pay cash, obtain regular mortgage

I like the idea of #2, (take out 225,000 heloc) with the penfed 5/5 ...0 closing costs. If rates start skyrocketing I think I can just get a regular mortgage...right?

I'm worried I'm missing something (like need 12 months of payment for HELOC, can't convert HELOC / LOE to mortgage if needed. Crazy fee's somewhere.. or not being able to deduct HELOC interest on the taxes)

No pics of GF...unless you provide incredibly insightful advice that saves me thousands of dollars...
Real Estate Deals
Yet another Mortgage vs. HELOC / LOE question
Added on : Sunday December 22nd 2013 05:00:04 PM
g: 0 Posted By: panmet69
Views: 2 Replies: 0 So I'm thinking about purchasing a house within the next ~1-3 months. I have enough for the 20% down no problem. I've been doing a lot of reading on the Mortgage vs. HELOC question and it seems very time sensitive (what advice everyone gave 12 months ago might not apply today...hence I'm asking the question) My income is 93,000/year. I am currently renting an apt for $1700 a month (with the girlfriend, each pay $850). Single (no head of household, no kids , no divorced wife, crazy uncle, etc. etc.) Girlfriend will be living in the house with me , she will pay rent (House in my name, no gf money included / needed for this).

My max purchase price is probably 300,000. I have access to a personal loan where I could pay "cash" and then obtain some type of loan on the house to pay the personal loan back. For arguments sake, lets say I can put %25 (75k) down. I have comfortable emergency funds, etc. etc. Do I...

1. Ignore the personal loan, take out a regular mortgage (with 20% down)
2. Pay cash , obtain a HELOC , pay person back.
3. Pay cash, obtain line of credit
4. Pay cash, obtain regular mortgage

I like the idea of #2, (take out 225,000 heloc) with the penfed 5/5 ...0 closing costs. If rates start skyrocketing I think I can just get a regular mortgage...right?

I'm worried I'm missing something (like need 12 months of payment for HELOC, can't convert HELOC / LOE to mortgage if needed. Crazy fee's somewhere.. or not being able to deduct HELOC interest on the taxes)

No pics of GF...unless you provide incredibly insightful advice that saves me thousands of dollars...
Real Estate Deals
g: 0 Posted By: badsister
Views: 1 Replies: 0 I've been calling doctors and hospitals confirming network status for United Healthcare's on-exchange plans.
Several doctors noted on the list informed me that they are not, in fact, participating in the exchange plans.
I would follow up by calling United with what the doctors told me and they would do nothing more than simply go the the xny site (which obviously i didnt need their help for) to confirm or negate a provider's network status according to what was noted online.

One of the hospitals i phoned was Sloan Kettering, as they were on the list (while though i heard that they were not participating).
They told me that they had negotiated a contract, but decided not to sign it. they are, therefore, officially not participating.

So i called United once again, and the rep i spoke to told me (sit down for this), that the list of providers on xny.com is their CURRENT list of providers and has nothing to do with the exchange plans.
I'm pretty sick over this, as if we want a United plan (with what is 'supposed to be' the largest network) we are buying completely blind as to who is in-network.
Is this not major fraud?

Bofa dinged my credit score for 8$ late payment
Added on : Saturday December 21st 2013 08:00:08 AM
g: 0 Posted By: jba
Views: 4 Replies: 0 Dear FW members,

I am about to apply for a loan so I pulled my credit report and shocked to see 720 down from 808.

The negative report was from Bofa CC for a 8$ late payment. I called Bofa, explaining how long I have been with them and they reported for a one time late payment and that total was 8$. They said nothing can be done now.

I have set auto pay on all CC except this.

is there any option to correct the late payment report? Please let me know.

Thank you and happy holidays.
Personal Finance Deals
Hypothetically speaking, need tax advice
Added on : Friday December 20th 2013 07:00:08 PM
g: 0 Posted By: chrislk1986
Views: 117 Replies: 2 If our household was expecting to bring in about $41-$44K this year, then during the last two weeks was informed they would be recieving $40,000 in additional income (but no date is given). If additional income is received in 2013, will there be any way to reduce taxes? What is the going tax rate on $84k?

Married, filing jointly. 2 Kids. Don't own a home. Zero debt/no loans...

If the money is received in 2014, I already have a plan.

I'm terrible at speaking in hypothetical.
Personal Finance Deals
Boost credit by adding joint account owner?
Added on : Friday December 20th 2013 05:00:10 AM
g: 0 Posted By: dahmn
Views: 142 Replies: 2 I have excellent credit, and my wife has bad credit due to a foreclosure/bankruptcy. Research tells me that if i add her as a joint account holder that she will gain all of my excellent account history, and it will hot have any effect on my credit (she has excellent spending habits, and the plan is to never have the card leave the filing cabinet).

Will my credit score be calculated differently since the account is changing from a single holder to jointly owned?

Will HER credit report appear as if she owned the account when i opened it years ago?

I make significantly more money than she does, and I make all possible purchases through some of the credit cards for Cash Backrewards. Would her credit score be negatively impacted due to my spending on the card and her significantly lower annual income? What about eligibility for a car loan, or do they only factor in minimum amounts due?

Personal Finance Deals
FHA loan vs. Conventional loan--which one is better?
Added on : Friday December 20th 2013 01:00:05 AM
g: 0 Posted By: dyslexiateechur
Views: 17 Replies: 0 I posted awhile back about owning several smaller rental houses but having issues getting financed for a larger house, due to medical collections. I was advised at that time to put it off for awhile, pay off my collections, and wait for my credit to improve on its on. I've done that and my credit is now high enough to qualify me for a mortgage.

We have found a house that we think we can pick up at a very good price that would fit our family's needs. I've turned in the paperwork, and now it's time to decide which route we want to go.

The house is listed at $159K, but we think we can get it between $120K and $130K. Our household income will be around in the $150K's for this next year.

Choice A:
FHA mortgage at 4.3% interest with $171 mortgage insurance required for the life of the loan. 3.5% down

Choice B:
Conventional Mortgage at 5.3% interest with $114 mortgage insurance required until we pay it 80% of the way down. 5% down.

We've got enough saved for the down payment, so that's not an issue.

I'm really thinking about going with B and paying it down to 80% right away. My husband thinks we can pay the house off completely within 3 years if we are aggressive, but with the fed getting ready to up interest rates, I'm not sure how wise that is.

Any advice would be greatly appreciated.
Need help with my finances.
Added on : Thursday December 19th 2013 07:00:12 AM
g: 0 Posted By: sanaam
Views: 350 Replies: 16 Hello to all and happy holidays. I'm looking into a personal loan from a private lender or a bank but the problem is I have credit score of 530! the loan amount I'm looking for is $2500 for few credit cards that i have with really high interest rates, as much as I try to pay them it never goes down. I do have a job and I make 3200 a month but with other bills and expenses I could never pay these credit cards off one time Shot. I rather pay one loan amount then few credit cards and different high interest rates. if there's anybody out there that could help or know where I could go please let me know thanks.
Personal Finance Deals
Personal loan!
Added on : Thursday December 19th 2013 06:00:10 AM
g: 0 Posted By: sanaam
Views: 179 Replies: 8 Hello to all and happy holidays. I'm looking into a personal loan from a private lender or a bank but the problem is I have credit score of 530! the loan amount I'm looking for is $2500 for few credit cards that i have with really high interest rates, as much as I try to pay them it never goes down. I do have a job and I make 3200 a month but with other bills and expenses I could never pay these credit cards off one time Shot. I rather pay one loan amount then few credit cards and different high interest rates. if there's anybody out there that could help or know where I could go please let me know thanks.
Personal Finance Deals
Paying Off Vehicle with Credit Card Prior to Selling
Added on : Wednesday December 18th 2013 05:00:21 AM
g: 0 Posted By: e90m3
Views: 78 Replies: 1 I recently purchased a vehicle to replace my existing car. I did not do a trade-in since I can get $2,000-$3,000 more selling privately. My existing car is currently financed:

Amount Owed: $24,000
Realistic Sale Price: $22,000

I did not put any money down since the APR was low.

My options now are:

Pull $24,000 out of savings, pay off the car, and have the bonus selling point of having a title in-hand
Sell the car and take the buyer to the bank for the title transfer process. Pull $2,000 out to pay off the remainder of my loan above the selling price.
Use a Chase Southwest card with 0% interest on purchases till July to pay off vehicle. Pay off most of balance after sale and the remainder before July.

Option 1 would be simple, but I would prefer to not have to deal with paying capital gains taxes on $24,000 when I'll be depositing $22,000 right back into the account after the sale. Option 2 would make the selling process more complicated and turn off some buyers. Option 3 is the most desirable since I don't have to touch my personal savings, I get the title in my hands, and I earn points.

What are the drawbacks or negative consequences of doing this? I know that holding a large revolving balance can be bad for my credit score. I do want to refinance the new vehicle within the next few months for a better APR. Although I'll have the balance paid off on the credit card prior to refinancing, could this negatively effect the APR that I qualify for?

Any input is helpful. I used to pay cash for everything, but I'm trying to use good credit to my advantage.
Personal Finance Deals
Tax implications - When is debt considered cancelled in a Deed In Lieu?
Added on : Monday December 16th 2013 12:00:08 PM
g: 0 Posted By: BocephusSTL
Views: 112 Replies: 0 My brother is going through a Deed-In-Lieu with BOA, and he is concerned about the potential tax liability if it's not completed by Dec. 31, because of the expiring Mortgage Forgiveness Debt Relief Act (MFDRA). They told him it's in the final stages of completion (post-closing dept.), but that it probably won't be fully completed for a couple of months. I'm hoping someone here might have relevant experience to determine when a DIL is considered complete for tax purposes.

The facts as he relayed them to me are:

His file is in the Post-Closing Dept. at BOA
The Warranty Deed where he signed the property back to BOA, and BOA's Deed of Release, have both been recorded with the county.
The post-closer said his incentive check is on the way.
He called the IRS, and was told that the determining factor for meeting the Dec. 31 deadline of the MFDRA expiration is that the debt must be cancelled by that date.
Post-closer told him she "thinks" the Deed of Release is the point at which the debt is considered cancelled, but she's not certain.
BOA still has to transfer the property to HUD, clear things off their books, report to CRAs, etc, which could take another couple of months.

The person at IRS told him that it's completely up to the bank as to when they consider the debt cancelled. The post-closer from the bank told him she "thinks" the recording date of the Deed of Release is what would be considered the date of debt cancellation in his case, but she wasn't sure. He is worried they won't consider it cancelled until it's fully off their books and reported to the CRAs. If that's after Dec. 31, the cancelled debt will be subject to taxes, which he can't pay so is obviously trying to avoid that situation.

Another question that came up when he talked to the IRS, could potentially make all of this moot. The IRS person told him that because it's an FHA loan,there technically won't be any cancelled debt because the mortgage insurance claim that will be paid to BOA effectively makes them whole. As a result, my brother won't be subject to income tax of the "cancelled debt". This kind of makes sense, but then again, it sounds too good to be true.

Any tax or legal experts here who can be any more definitive about these questions? I wore out my Google-Fu trying to get answers, but the only information I could find wasn't specific to these details.
Discussion Deals
g: 0 Posted By: limitsc
Views: 217 Replies: 1 I know this type of thing has been discussed at length on here and I have read a lot of it out of general interest (I am a new loan officer and try to learn when I can).

Still I am not 100% how to go about this situation, because I guess I thought when it came to stuff like this, the debt in collections was usually either valid where prior notice was given, or completely invalid (where the advice was usually to dispute and request validation).

In my case, I got a new job. Had insurance at old job, new job insurance didn't kick in for like 1.5 months. I take a prescription med, refilled monthly. A little over a month after starting my new job, it came time to get a refill. Honestly, I had no clue whether my old insurance was still active. I did ask several people, and was told that I would be notified when it was cut off. Still not 100% sure, I went to my pharmacy and spoke to them about the issue and whether I would have to pay out of pocket that month, which would have been fine...we are talking probably ~$200 vs the crappy $60 copay for that previous insurance. They said they would just submit it in their system and see, and once they did that they confirmed it was covered, no problem. I thought it was that simple, anyway. That was on 7/15/13.

Never heard anything else about it. By the next month (August), my new insurance had started. Also, I was on the phone with my old insurance several times around this time because I had to get a cert. of credible coverage. I am pretty sure I remember them saying they had not received notice of my cancellation and were going to do it at that point (because I had told them).

Fast forward to last Friday (12/13/13), I get a letter in the mail from RMS, what appears to be a collection agency. It states the INS company has placed my account for collection (for $130) due to overpayment on prescription drug coverage. It also says "They have sent you previous notice(s) on this account requesting payment." It also has a blank and asks me to furnish my phone number. So I am pretty upset at this, because I am 27 and started my credit when I was 18. I still have that first credit card that started with $250 CL and now is just south of $20K. I have over 35 accounts on my report without a single negative. Also, I would very much like to buy a house, hopefully in the next year. Also, I am pretty certain the INS company NEVER sent anything notifying me of this. The phone number they had on file was my parents' home number where I no longer reside, however I am certain that if they had ever called then my parents would have told me. I stop by weekly to pick up mail that still gets sent there also.

The only thing I have done so far is contact the original INS company today. The lady said that accoridng to her record, my coverage ended on 6/30, however they weren't notified until 7/28 which must have been why they approved the prescription on 7/15. She said I should have received notices, and could not explain why I did not and all she could do was apologize and tell me to call the collection agency. I don't care about the $130....if my coverage had ended then that's fine. My main concern is a collection account showing on my CR, but I feel like if I go ahead and pay the collector it will show up anyway. Does anyone have suggestions on how to proceed?
Question Deals
LFS (toyota finanical) confusion on prepayment
Added on : Monday December 16th 2013 06:01:01 AM
g: 0 Posted By: danis21
Views: 124 Replies: 3 Hi Guys

So Lexus has a December sales event in which one can either take 0.9% APR or $2000 (with standard APR) rebate on RX350, if the car is financed through Lexus/Toyota Financial Services.
I took the $2000 rebate offer as the sales person told me that I just need to finance 10k for minimum of 4 payments. When it was time to finalize everything with the finance guy, he said, the 'minimum is 22k and for 6 months'. So, at the end, they made me take a loan of 22k @ 4.24%.
I know I can do better and the contract basically has no prepayment penalty.
The dealer said "there is nothing in the contract, but if you pre-pay before 6 months, LFS will send you a bill for 2k rebate".

So - my question to FW finance gurus is - if there is nothing in the contract, and the contract specifically says "no per-payment penalty" - would you keep the loan for 6 months or pay it off early?

Also, if I pay it off within a couple of weeks (as soon as I get the account number), will it affect my credit history really bad?

Thanks for the help.

Question Deals
g: 0 Posted By: jnaks4
Views: 218 Replies: 1 Hi all, I was hoping to get some advice from you who are extremely more knowledgeable when it comes to money management and financial advice.

Here's the basics of my situation:

-Recently graduated in 2011, so there are still 8 years left on my student loan repayment plan. total monthly payment of $2032.
-11 loans that total just about $145k at either 7.65% or 6.55%
-$19652 @ 7.65%
-$15702 @ 7.65%
-$9492 @ 7.65%
-$26165 @ 6.55%
-$25007 @ 6.55%
-$22273 @ 6.55%
-$7179 @ 6.55%
-$7179 @ 6.55%
-$7178 @ 6.55%
-$2559 @ 6.55%
-$2217 @ 6.55%
-Gross income of $121,430, net of $2820 per biweekly paycheck
-currently contributing just 5% to my 401k to maximize the company match
-employee stock purchase plan option at 15% discount, but currently not investing anything here
-Rent and all other living expenses total $1200-$1500 per month.
-Savings at 35,000

I was thinking about my situation the other day and don't especially care for the thought of dumping most of a paycheck toward my student loan debt for the next 96 months. I have been considering making more than the standard loan payments to expedite the process, but have heard differing opinions with regards to investing vs. paying down debt early. Any input regarding my situation would be greatly appreciated, thank you very much in advance.
Investing Deals
g: 0 Posted By: jnaks4
Views: 97 Replies: 0 Hi all, I was hoping to get some advice from you who are extremely more knowledgeable when it comes to money management and financial advice.

Here's the basics of my situation:

-Recently graduated in 2011, so there are still 8 years left on my student loan repayment plan. total monthly payment of $2032.
-11 loans that total just about $145k at either 7.65% or 6.55%
-$19652 @ 7.65%
-$15702 @ 7.65%
-$9492 @ 7.65%
-$26165 @ 6.55%
-$25007 @ 6.55%
-$22273 @ 6.55%
-$7179 @ 6.55%
-$7179 @ 6.55%
-$7178 @ 6.55%
-$2559 @ 6.55%
-$2217 @ 6.55%
-Gross income of $121,430, net of $2820 per biweekly paycheck
-currently contributing just 5% to my 401k to maximize the company match
-employee stock purchase plan option at 15% discount, but currently not investing anything here
-Rent and all other living expenses total $1200-$1500 per month.
-Savings at 35,000

I was thinking about my situation the other day and don't especially care for the thought of dumping most of a paycheck toward my student loan debt for the next 96 months. I have been considering making more than the standard loan payments to expedite the process, but have heard differing opinions with regards to investing vs. paying down debt early. Any input regarding my situation would be greatly appreciated, thank you very much in advance.
Investing Deals
Taxes on sale of family home
Added on : Friday December 13th 2013 07:00:09 AM
g: 0 Posted By: linuspb
Views: 76 Replies: 0 We recently closed on the sale of our deceased parents family home. The proceeds were split between 4 siblings and the checks were written to us by the bank that financed the sale for the buyer. I realize there may be capital gain taxes due (depends on how we calculate the basis) but who reports our payment to the IRS. Is it the bank that made the loan or some other agency. and will I get a form next Jan or Feb like a 10-99. We are only talking about $12,500 to each sibling.

Real Estate Deals
Anyone been able to get a PenFed 5/5 refi done while being self employed?
Added on : Thursday December 12th 2013 06:00:10 PM
g: 0 Posted By: mulanijem
Views: 59 Replies: 1 I have been workingon a 1099 basis for about15 months making very good money, and have plenty of cash reserves and excellent credit.However after looking around on the net it looks like
you can't get approved unlessyou work off a W2, or have 2 years of 1099 history even if you have cash in bank to pay the loan off if needed.Anyone been able to get a 5/5 donewhile being self employed?
I know I should have researched this before hand, I assumed they would look at my financial data and see no risk, as there really isn't any. I feel like they should just state up front if your are self employed don't bother applying if it is not doable...

Personal Finance Deals
40 and almost broke - need advice
Added on : Wednesday December 11th 2013 06:00:10 AM
g: 0 Posted By: Eagle357
Views: 370 Replies: 11 hello everyone, new guy here looking for some financial advice. this site was the first result from a google search for 'finance forum'.

anyway, story is that i am 40 yrs old with 3 kids. i seem to live paycheck by paycheck, and barely have anything left to save at the end of the month. i have been at my job for 10 yrs, but am thinking about quitting to pull out my retirement and start all over.

right now i have the following:
-$7500 in savings
-$130,000 in retirement
-$100,000 life insurance policy at current job

my debt:
-$10,000 credit card
-$4200 car1 ($270/mo. @ 6.8%)
-$12000 car2 ($330/mo. @ 4.5%)
-$15000 home equity loan ($220/mo.@ 8.8%)
-$123,000 mortgage ($1500/mo. inc. tax/ins. @ 3.8%, 10 yrs left, est. appraisal $160k)

i make enough to live decent, but i am not saving anything towards college education, emergencies, or anything. i have the option of staying at current job and paying down house and bills. or i can sell house and take out retirement. the 2nd option will allow me to pay off all bills, car notes, and be debt free completely and have about $105,000 left. i would have to reolcate and find another job though.

what would you do? i should say that i'm pretty thankful for what i have, but i feel i wasted 15+ years squandering money, a lot of which i had no control over and due to unexpected circumstances. thanks for listening.
Personal Finance Deals
Advice on job opportunity, financial planning...
Added on : Monday December 09th 2013 02:00:14 PM
g: 0 Posted By: peteron
Views: 386 Replies: 3 Hello FWers, my phd program is coming to an end, and I was recently awarded a postdoc fellowship at a govt research center located at mountainview, or silicon valley. The job will start in next April. Before accepting this offer, I have some concerns on financial arrangements. I was awarded a stipend of $64k, which I believe is non-taxable. My wife and 20 month son will relocate with me. Family insurance is shared between me and the research institute. I need to pay $167.55 monthly out of pocket. The insurance does NOT cover dental or vision.
About this job, I consider it a good opportunity - only the living cost is a concern to me. My phd program mostly produces scientists and professors. We donot earn 120k+bonuses like other new grads in the silicon valley tech companies.So this is not a discussion of 'why dont you find a better pay or go to industry?'. I mostly want to know how likely it is to maximize our living at (around) moutainview at my salary level.
My financials are: $20k in saving account. No student loans. No significant credit card debts. Car loan of $16800 with APR 0.71% (monthly payment is around $389). Car insurance of $472 for six months (Geico).We are not big spenders and always pay in full credit cards. I am thinking of starting to invest in stock in near future. My questions are, Is it like to rent a 2-bedroom or a big-size 1-bedroom at 1500-1800/month near the area? I will avoid the expensive places and a radius of 15-20 miles should be acceptable. Is public transit conveneient, so I can commute to save on gas? I will have to buy full coverage on the car since it is not paid off. I donot know how much would that be in MV. We usually go to Asian market to save on grocery, and I suspect this can be done at MV, am I right? Also I probably need to purchase dental and vision insurance by ourselves. Finally, there will be day care needs for my son... We are trying to save as much as we can, so we can start to own our own place once we settled down. Please give me advice or tips on how to arrange my finance at this new place.

I am sure the stipend is not taxable, and should not have withholding.
Personal Finance Deals
Advice on job opportunity
Added on : Monday December 09th 2013 01:00:07 PM
g: 0 Posted By: peteron
Views: 48 Replies: 0 Hello FWers, my phd program is coming to an end, and I was recently awarded a postdoc fellowship at a govt research center located at mountainview, or silicon valley. The job will start in next April. Before accepting this offer, I have some concerns on financial arrangements. I was awarded a stipend of $64k, which I believe is non-taxable. My wife and 20 month son will relocate with me. Family insurance is shared between me and the research institute. I need to pay $167.55 monthly out of pocket. The insurance does NOT cover dental or vision.
About this job, I consider it a good opportunity - only the living cost is a concern to me. My phd program mostly produces scientists and professors. We donot earn 120k+bonuses like other new grads in the silicon valley tech companies.So this is not a discussion of 'why dont you find a better pay or go to industry?'. I mostly want to know how likely it is to maximize our living at (around) moutainview at my salary level.
My financials are: $20k in saving account. No student loans. No significant credit card debts. Car loan of $16800 with APR 0.71% (monthly payment is around $389). Car insurance of $472 for six months (Geico).We are not big spenders and always pay in full credit cards. I am thinking of starting to invest in stock in near future. My questions are, Is it like to rent a 2-bedroom at 1500/month near the area? I will avoid the expensive places and a radius of 15-20 miles should be acceptable. Is public transit conveneient, so I can commute to save on gas? I will have to buy full coverage on the car since it is not paid off. I donot know how much would that be in MV. We usually go to Asian market to save on grocery, and I suspect this can be done at MV, am I right? Finally, I probably need to purchase dental and vision insurance by ourselves. We are trying to save as much as we can, so we can start to own our own place once we settled down. Please give me advice or tips on how to arrange my finance at this new place.
Personal Finance Deals
SunTrust Access 3 Equity Line 1.99% through 1/2015
Added on : Monday December 09th 2013 11:00:08 AM
g: 0 Posted By: fatwallet21
Views: 0 Replies: 0 ~~Save with a SunTrust Access 3 Equity Line
No application fees, and as long as your account is kept open for at least three years, we will advance most, if not all, closing costs on your behalf.2
Interest may be tax-deductible3
Interest rate reductions for qualified SunTrust account holders4============ Gotchas========
- LOC has to remain open for 3 years
- Closing costs on $100K comes to ~$1K
- After Jan 2015, the interest rate goes up to 5.00 plus (it is prime plus margin and their margin is pretty higher) This is where the existing suntrust clients discounts come into picture
~~~~More savings for SunTrust clients
Existing SunTrust clients are eligible for up to 0.75% interest rate reduction off our standard rates for new and refinanced equity lines4. Discounts include:
0.25% interest rate reduction if you maintain a qualified SunTrust deposit account
0.25% interest rate reduction if you have a qualifying mortgage from SunTrust Mortgage, Inc.
0.25% interest rate reduction if payments on your equity loan are automatically deducted from a SunTrust checking, savings or money market account using SurePaySMhttps://www.suntrust.com/PersonalBanking/Loans/EquityLinesOfCreditAndLoans/EquityLineOfCredit
HELP! NYC Monthly Budget Planning
Added on : Monday December 09th 2013 11:00:08 AM
g: 0 Posted By: jessicalf
Views: 165 Replies: 4 This is my first post so please be gentle

I just moved back to the US from London and was lucky enough to score a job in NYC paying me $85k. I'm trying to get my head around what is realistic for out goings. In reality, as rent will be my largest outgoing, I'm wondering how much I can afford for a place without feeling strapped financially. I'm between two options at the moment, with a big price difference, among others..

Monthly Budget Option A:
Net Income: about $4500
Rent option a.) 1,033
Utilities: $170 with TV etc
Travel: $130
Groceries: $400
Dry cleaning: $100
Student loans: $150
Gym: $100

Leaves about $2,417 for discretionary money. (My work pays for my cell phone bill.)

Monthly Budget Option B:
Net Income: about $4500
Rentoption b.)1,830
Utilities: $170 with TV etc
Travel: $130
Groceries: $400
Dry cleaning: $100
Student loans: $150
Gym: $100

Leaves $1,620for discretionary money.

I realize that's a pretty big difference, but the rent of $1.830 is in a two story 2/2 and is much larger and downtown. For the other place I'm getting a shoe box on the UES sharing a bathroom with two others. I'm not all that fussy, but worried about savings, discretionary spending etc versus having a significantly nicer place... Wondering what other people's experiences have been in NYC. I don't want to get into a situation where I'm tied into a lease I feel I can't afford. I tend to go out on weekends and am sure I can definitely spend quite a bit of money experiencing all the great things NYC has to offer..

Any helpful insight would be much appreciated Thanks!
Personal Finance Deals
Question on Refinance, help please.
Added on : Sunday December 08th 2013 09:00:09 PM
g: 0 Posted By: regor1000k
Views: 165 Replies: 0 I thought I might ask these questions here in this forums as many members are familiar with the Penfed 5/5 ARM mortgage.

Just to be sure I understood the loan, the 5/5 mortgage with a 2.625% starting rate, correct me if I am wrong:

1. for 1st five years the rate is 2.625%
2.the rate adjusts once every 5 years ONLY
3.The maximum rate adjustments up or down ONCE every 5 years in 2% ONLY (so my 6th year might be 4.625% or 0.625%)?
4.The total rate adjustment cannot be more than 5% which means, my rate will be NEVER more than 7.625% probably in year 15 not before that?(if rates are going up)

Now, my situation:
I closed on a 30 yr conforming loan 2 months ago (with Wells Fargo) after which I applied to 3 credit cards to buy appliances, furniture and also get some 0% APR offer. ~3k Debt@0% APR
My LTV ratio is about 75%, which means my home is worth 25% more than my loan as per the purchase price/appraisal 2 months ago.

1.Can I apply for a Penfed 5/5 ARM now just after 2 months of closing? Will they even consider my mortgage application?
2.Will Penfed closing cost offer cover all my closing fees? I read that it does not cover Owners Policy, do I need a new owners policy when I refinance?
3.How does the process work?, should we pay for appraisal and other fees to start with before closing or will penfed pay everything to start with?
4.Their website says that they might have a origination fee which can be waived with a 0.25% rate increase, any experience with that?

All your help appreciated...
New User Question Deals
Question about Car Salesman Inflating Tradin Value
Added on : Saturday December 07th 2013 06:00:13 AM
g: 0 Posted By: BondGamer
Views: 72 Replies: 2 A family member is buying a car and they wanted me to look over the figures for them. The dealer originally offered $2000 for their existing car and the car price was $16000. The salesman came back and said it will look better if they make it so the tradin value is $4000 and raise the car price to $18000.

I tried to research if this is some type of tactic to squeeze more money out, but I don't see anything about it in the standard car salesman tactic guides. Anyone know if this is a bad deal or how it would cost more money to do it this way?

Financing is being done through the dealer. I think it was 2.48% at 72 months. The loan amount is $15000.
Question Deals
Taking advantage of a car loan to improve credit history/score
Added on : Friday December 06th 2013 10:00:07 AM
g: 0 Posted By: luciusd
Views: 4 Replies: 0 I want to purchase a new 2014 car, already have model/options worked out. I have the cash to pay for the entire thing. What I want to do is take advantage of a reasonable car loan on my credit history to help improve said history/score.

The problem is I currently do not have a job or any credit history whatsoever. I'm a recent immigrant and only received my SS number a few months ago.I have a close relative with a stable, high-paying job and excellent credit score/history. She is willing to co-sign with me. I've talked to a dealer and was told I can't be on the loan if I don't have a job.

I know a loan on my credit history will help improve it in the long run, as I eventually want to purchase a house. I want to take advantage of this while I can. The various dealerships that carry my car are even doing a 0.9% APR for 60 months, which I'm sure my relative will be approved for.

Does Fatwallethave any advice on how I can go about doing this?
Getting ready for 3rd AOR - how does this look?
Added on : Wednesday December 04th 2013 09:00:10 AM
g: 0 Posted By: Muscle
Views: 97 Replies: 0 Hi all,

I'm getting ready to do my 3rd AOR.

My main focus is to BT as much of my current 0% APR debt ($25k) as possible. The remainder I will pay off or do another AOR around the middle of next year for the remaining balance.

Last AOR was pretty successful. I was able to invest over $20k in mutual funds while making minimum payments which have done very well, along with ~$600 in sign on bonuses and Cash Back.


Good credit score (above 700, most likely below 800 - last I checked a few months ago it was around 750).
5/1 ARM on condo, not resetting for another 3 years. Car paid off, so not looking for new loans on either of these.
May possibly do a HELOC early next year on my property as a mutual fund investment vehicle if I can find a rate that makes sense.
About 50% utilization on all cards, with 0% on sock-drawered ones and 90%+ on ones still going at 0% APR.
About $25k CC debt all at 0% APR.
Promo APR will expire between April-July 2014 on current cards.

Current cards:

AMEX Costco
AMEX Blue EveryDay
Chase Freedom
Chase Slate
Citi Dividends Platinum
Citi Simplicity
Citi Forward
Discover (regular)
BoA Cash Rewards

I've had bad luck with CapOne, they always deny me. Don't think it's worth it to apply with them anymore. I think I'm maxed out on Chase cards, as I've had 3x Freedom cards consolidated into the Slate card for a total CL of 14k.

I do have a pre-qualified offer from Citi for a 0% APR 18 months/3% fee BT card, so I may do that one, but it has no sign-on bonuses. I also have an offer from Citi to transfer a balance to one of my unused cards which has a 7k CL for 3%.

That said, here are the cards I'm considering applying for:

Discover IT - 3% BT fee, 0% APR for 14 cycles, no bonus
Citi Diamond Preferred - 3% BT, 0% APR for 18 cycles, no bonus - downside: already have a bunch of Citi Cards and 2 prequal offers, so may not want to do this one too
Citi Thank You Preferred - 3% BT, 0% APR for 15 cycles, no bonus- downside: already have a bunch of Citi Cards and 2 prequal offers, so may not want to do this one too
Barclay Rewards MC - 3% BT, 0% APR for 12 cycles, $100 Cash Back if spending $1000 in 3 months
US Bank Platinum Visa - 3% BT, 0% APR for 15 cycles, no bonus
Various 3% BT, 0% APR for 12-15 cycle cards found athttp://www.nerdwallet.com/balance-transfer-credit-cardsincluding Hancock Bank, Union Bank, Bremer Bank, First National Omaha, Citizens Bank, etc - are these any good? Never heard of these banks before.

Suggestions on which cards I should focus on/what I should avoid/what I'm missing?

Lastly (but most importantly) should I apply for the pre-qualified offers from Citi and awaiting a response BEFORE doing this AOR? That is, can they deny me my 'pre-qualification' on account of too many inquiries with other applications?


Personal Finance Deals
Using balance transfer to pay off student loan
Added on : Wednesday December 04th 2013 04:00:08 AM
g: 0 Posted By: jkk4life
Views: 15 Replies: 0 I have done a google search and haven't found a definative answer to how to do this. What I am trying to accomplish isto transfer 10K from my student loans to my wife's Chase Slate card she was just approved for. The problem is that on the site itonly allows you to balance transfer to a credit card. I am assuming if she calls Chasethey won't allow it since it's not her loan and it's not a credit card and from what I read Chase does not give out balance transfer checks.

So, the option I think we need to go with is to do a balance transfer to one of her other credit cards and get a refund check from that company. From what I read this is a simple process from CITI, but she does not have any Citi Cards.

So ifyou are still with meafter that long intro, what I am asking for is some advice on how to best accomplish this and if anyone has any luck and/or issues with the following credit card companies in doing a large refund check. The other problem is the only big limit cards she has are from Chase which won't work.

Discover (only 2K limit )
Barclays (1500 limit)
AMEX Gold (no reallimit since its a charge card)
AMEX Blue (2700)
DCU (1500)
US Bank (11,800 was just approved and haven't even gotten the card yet. Don't think this would look good on a branch new card/relationship)

Another optionwould be to ask DCU for a CLI increase then do a cash advance for the $10k (which is no fee from them) and then do the balance transfer to pay it off immediately. We would just end up with a week or so of interest to pay. Any thoughts on if they might not like that and close her account? I'm thinking taking a 10K cash advance right after an increase would be highly suspicious looking.Or some other options on how to accomplish this?

Personal Finance Deals
Ocwen Mortgage Error - Automatic Payment Debited Twice
Added on : Tuesday December 03rd 2013 01:00:07 PM
g: 0 Posted By: jmw11
Views: 136 Replies: 0 Better check your bank account if you let Ocwen automatically debit your monthly mortgage payment. They debited my monthly payment twice.


Subject: Automatic Draft Information

We recently identified a discrepancy with the automatic payment received on December 2, 2013. Your account was incorrectly debited for this payment twice. To resolve this situation, we reversed the entry credited to your account in error and have returned the funds to your financial institution. Every effort was made to return the funds as quickly as possible. If this transaction caused a fee to be assessed by your financial institution, please forward evidence of this charge to our office by fax to 1-319-236-7479 or by mail to Electronic Payments, PO Box 780, Waterloo IA 50704.

We sincerely apologize for any inconvenience you experienced because of this situation, and expect no further issues on a go-forward basis. If you have any questions, please contact us at 1-800-766-4622 weekdays from 7:00 AM to 8:00 PM, Saturdays 8:00 AM to 4:00 PM, and Sundays from 8:00 AM to 8:00PM, Central Time.

Customer Care
Loan Servicing
Real Estate Deals
Caliber Home Loans Mortgage
Added on : Tuesday December 03rd 2013 12:00:06 PM
g: 0 Posted By: sharpie13
Views: 112 Replies: 3 My mortgage loan servicing rights were recently transferred to Caliber from Flagstar Bank, who were very professional. Caliber is a totally different animal. My mortgage is in good standing, yet these scum-bags insist on printing the mini miranda warning: "THIS IS AN ATTEMPT BY A DEBT COLLECTOR TO COLLECT A CONSUMER DEBT AND ANY INFORMATION OBTAINED WILL BE USED FOR THAT PURPOSE. I called to ask what the deal was and they seemed to be adamant that this was a consumer debt and they had the right to print this warning. I filed a complaint with the Consumer Protection Agency who seemed equally baffled and took up the mater with the bank. I received a nice letter from Caliber saying that my loan was in good standing; however it was their policy to print the mini Miranda warning on all their loan correspondence. The CPA hasn't followed up yet, but before I go and start something, does anyone have the same Miranda printout on their mortgage billing statement? If so are you OK with it? Thanks in advance for your input.
Real Estate Deals
deduction of bad debt
Added on : Sunday December 01st 2013 07:00:25 PM
g: 0 Posted By: ptiemann
Views: 98 Replies: 2 I have loaned money to people, not sure if I should use the word friends. One guy owes me $5000 since 2012, made 3 payments in 2012 totaling $300 (of which $100 was actually not cash but some labor), and I could get ahold of him this year. Almost no written documentation of debt. This person has no money.

Another friend, I gave $15k, I got 3 times $500 paid in 6 months intervals. The loan was supposedly for 4 months only, as it became obvious that it would take longer, there was talk about 10%. I thought it meant 10% interest. Now that I write it, it seems it meant 'you will receive 10% as repayment'.
Not responsive to phone calls; this person does have money and (irregular) income. I do have documentation in form of digital images of the 3 cashed checks, in the memo field on the check the debt is referenced.

I don't want to go the small claims route. The first guy has no money and will never have anything, the 2nd one has proven his character, even if I would get a judgment, I would be in a long line.

Question is, is there any way how I can use this on my tax return? No, I don't have the SS # of either one and I don't think they would volunteer it, even if I would officially forgive their debt (I think I could 1099 them then).

Serious answers and no loan requests, please.
Personal Finance Deals
g: 0 Posted By: ecstatica
Views: 291 Replies: 1 360Checking: Open a fee-free checking account and earn $125. 360Savings: Sign up for a savings account and get a $75 bonus. Refer A Friend: Refer 2 friends and get a $100 bonus. Home Loans: Get $1,000 off closing costs and a $250 Amazon gift card.
CapitalOne ShareBuilder: Get a $150 bonus when you open an account and make 3 trades. CapitalOne ShareBuilder IRA: Fund a new IRA and get up to $1,000.

Just got this email from Capital one 360. Just signing up for checking and savings accounts will score you a free $200
Not sure why the formatting is all messed up! Link
Offer expires tomorrow 12/2/133
This has to be your first 360 Savings account and it needs a $500 initial minimum deposit. The bonus starts earning interest on day 1, but you cant take it out for at least 30 days. The variable APY is 0.75%, effective 11/29/13.

Services Deals
please evaluate financial situation and advise?
Added on : Sunday December 01st 2013 03:00:17 AM
g: 0 Posted By: snsmith877
Views: 28 Replies: 0 Hi. I just joined this and want to ask you smart people for financial advice.
I'm 26, work in healthcare, 2 jobs, make about 50k. Have 9k in retirement savings, 1500 in emergency savings, I know that's not great but I paid off all my student loans a couple months ago. Since then I've been putting 17% in 401k. Emergency savings also was more but I had surgery last week and had complications, e.r. visit, hospitalization.. have no debt except for 3k in no interest medical debt from before I had insurance. I own my car.
I live with my boyfriend, the only bill I pay is water. I buy groceries a lot and gas in the car for work and whatever else. Boyfriend is kinda eccentric, saves money in a safe in his house. He makes way more than I do, has no health insurance, no debt, rents apartment, owns his own business and can never figure out how much taxes he has to pay. I've tried to b.s. him into marrying me so I can put him on my insurance but even I can't figure out if being married would save money or cost more in taxes etc. I did finally manage to convince him to get a credit card to start building a credit history.
Mainly I'm wondering if there's some kind of personal finance website for self employed people that you guys could recommend, and also what kind of retirement account he can get so he can get more return on investment than sitting in the safe. Right now the best plan I can come up with is to build my emergency fund back up and then just start saving twice as much money in my retirement account to make up for his lack of one.
I want to try to encourage him to manage his finances better but I don't feel like I have the knowledge to even give him good advice.
Personal Finance Deals
Advice on paying down student loans vs. 401k contributions
Added on : Friday November 29th 2013 09:00:10 AM
g: 0 Posted By: br435
Views: 78 Replies: 0 Hi,

Here is our (my fiance and I) situation:

401k account: 50k (currently maxing out contributions and getting some company match)
Roth IRA: 8k
Cash (savings+checking) assets: 90k @ 1%
Debt: None
Income: Approximately 110k per year right now (20% of that being bonus)

Cash assets: 10k
Debt: 137k (Some @ 5% and some @ 6.8%)
Income: 55k per year, probably going up to something around 120-140k in 1.5 years when she finishes residency

My question:
We are getting married in a few months and I think there are a couple of things we can do to benefit significantly financially. One is for her to max out her 403b contributions (to get the tax benefits). The other is to pay down her loans to reduce the interest. The question is which to do first?They are to some extent mutually exclusive (at least till her income increases) because we do not have the savings to pay down her loan in its entirety at the moment. So would we derive more benefit in the long term from the tax benefits in the 403b on in the benefits of paying down the high interest loan?

Any and all input welcome. To speed things up I have already considered the financial implications of marriage in general and have decided to take my chances as far as that goes.
Personal Finance Deals
$749 WFG Title Refund check
Added on : Wednesday November 27th 2013 04:00:13 PM
g: 0 Posted By: psychtobe
Views: 154 Replies: 0 Just got a check for $749 from WFG Natinoal Title Company.

I refinanced with Loan Depot in June. We paid $1179 for title insurance at that time (lender only).

Is it normal to get a check for 2/3 of the amount of the initial title? The net amount we have now been charged ($1179-$749 = $430) seems very cheap.

I'm happy to cash the check if this is correct. Happy Thanksgiving to me!
Question Deals
Who Reports to CRAs, and When?
Added on : Tuesday November 26th 2013 03:00:08 PM
g: 0 Posted By: NeoMayhem
Views: 68 Replies: 0 I have seen a lot of posts on FWF about when delinquent accounts can be reported, and if a SSN is needed or not. It seems there are three types of accounts when it comes to negative credit reporting:

1. Shows up on CR immediately after 30 days late.
-Credit Cards, Car Loans, Student Loans, Mortgages, others that report monthly
2. May show up on CR after 30-90 days late depending on company. They usually try to get payment first.
-Utilities, Cable, Cell Phones, Internet, others who ask for SSN at sign up, but do not report regularly.
3. Must go to collections before it hits report. These companies do not generally report to CRAs directly.
-Medical Bills, Home/Car Maintenance, Landlords, PayPal, others who do not normally view/report to CRAs.

Does this seem accurate. Anything I am missing?
Discussion Deals
Starting a retirement account - TSP or IRA?
Added on : Sunday November 24th 2013 10:00:07 AM
g: 0 Posted By: FYGMO
Views: 42 Replies: 0 I'll try to keep this concise, thanks in advance for the advice. I've been lurking here for quite some time but haven't posted yet.

Debt free (paid off 60K in student/personal loans over the past three years), 25 years old, married with one child, income is 5K after taxes, monthly expenses about $3K. 25K cash on hand not earning interest - just pulled out of other interest bearing accounts etc/it's newly accumulated. Access to TSP(no matching) and USAA member FWIW.

Originally was going to put the max for me/wife in a vanguard roth IRA market fund (22K contribution incl next year), maintain 5-8K 'emergency fund', and open a mutual fund for the rest of the savings accumulated(to meet mid term goals). After reading about the TSP I realize that I can mirror the market with some of their holdings and put up to 17.5K/yr using the roth TSP option. Pros to the TSP are much lower fees, but I want to be able to access the contributions without penalty should I need to supplement a house down payment some day, start a business, etc. Can I convert the TSP to a roth IRA while still employed and withdraw contributions that way? Is there a break even point after which time penalties would be covered by the lower fees for a reasonable withdrawal? The government resources are kind of cryptic but it looks like there is a 10% early withdrawal fee for the earnings when using the roth option and the contributions are withdrawn proportionately with the earnings rather than contributions being withdrawn prior to earnings(edit).

What do you suggest that I do? Long term plan is approximately ROTH IRA max annual retirement contributions(11K) and roughly equal savings investment (to cover major purchases, house down payment in a decade, etc). I expect my expenses to roughly increase with my income over the next several years.
Tax Deals
Help: Issues with a Mechanic
Added on : Friday November 22nd 2013 12:00:08 PM
g: 0 Posted By: fongo61
Views: 172 Replies: 0 Hey FatWallet I need your help in figuring out my next step I was recently in the market to purchase a car. I asked my friend who's knowledgeable about cars for help and he recommended a guy that his coworker deals with. The coworker has purchased several cars from him in the past and continues to do business with him.

The mechanic basically buys cars at an auction and repairs them. Being highly recommended I found a car and put down $3,000 (cashiers check) to have him fix the car. He wrote out the contract for the car stating that he would sell it for $10,500. We verbally agreed that I can have the car looked at by a second opinion and he would fix any issues. I checked on the car 2 weeks later and he completed some of the work and paid him another $1,000 and got preapproved for a loan for the remainder. He said that the car would be done in two weeks. I go to the shop on that date and he said that his kid was sick and he had to take care of him/her. So I gave him a few weeks and proceeded to follow up with him.

He said that the car would be complete last week. I told him I would take the day off of work to get the car looked at, and pay him the remainder of the balance. So I called him up that morning at 9am and 10am and he didnt reply and went to the shop to check to see if he was there. When I arrived at the shop he wasnt there and the car was in the same shape it had been the last time I visited him. I told his workers to let him know I came and called him (he didnt pick up).

In total Ive been without a car for about 10 weeks; I dont really need one, but I want to get this thing squared away. Right now Im looking at legal options and trying to figure out my next step. If you can help in any way I would greatly appreciate it.

Edit: Right now I'm looking at small claims court. I was given wrong information and thought that the amount was over the needed amount for small claims cout.

Paid $4,000 (paid in cashiers check) to a mechanic to fix a car
Drafted a crude document stating the terms(price, car, vin, company name)
Mechanic is not being responsive
Need suggestions on next step
Personal Finance Deals
Bank offered Mortgage Refi - But now its not as it seemed
Added on : Friday November 22nd 2013 03:00:12 AM
g: 0 Posted By: NonReturnable
Views: 134 Replies: 2 I was at my bank about a week ago to withdraw some money for a potential purchase I was going to make on craigslist.

The lady processing my transaction was the branch loan officer. She noticed I had a home loan while looking at my account, and asked if I'd considered refinancing.

I looked into it about 2 years ago, but it was going to cost me several grand out of pocket, and since we don't plan on living there more than another few years, it didn't seem worth it.

She explained that the process had changed, and they can now do refinancing without closing costs or other costs. She said it would not cost me for the refinance, did some calculations, and showed me they could drop my mortgage from a 30 year to a 20 year with a better interest rate and that my monthly would stay the same.

My thinking was - I could pay the same monthly and when I go to sell I have more of it payed down, so more money in my pocket when we sell.

I email her copies of my W2s and pay stubs.

Yesterday I get some paperwork in the mail. Including paperwork for a home equity loan, which I did not ask for, paperwork advising me that I should pay $80 for a lawyer through the bank to help with this process, and a Good Faith Estimate showing me the refi will cost me $700 in settlement charges.

I'm quite pissed off right now. This is not what the loan officer said it was. I did not want an equity loan, nor would I pay $700 out of pocket. I don't have $700 to fork over on this right now.

At this point, I'm going to call her and tell her to shove this new loan up her ass.

But, before I do, do I have any other options? Can I haggle into getting the settlement charges dropped (as they had said there would not be any to begin with).
Or, should I just drop this whole thing?

Edit - Just got off the phone with the bank. Loan officer is going to give me a call in an hour after she's off a conference call.
The person I spoke with explained that the "Settlement charges" were not a cost to me, it was something the bank pays, but they had to disclose it to me.
And, that the refi loan actually IS a home equity loan, for the cost of the house.

Still a bit unsure about this. I want to go through the paperwork with the loan officer and have it all explained to me first.
Question Deals
buying home in the SF area
Added on : Wednesday November 20th 2013 05:00:16 PM
g: 0 Posted By: proflin
Views: 269 Replies: 5 Hi, I really could use some help here -- My wife and I have been looking around in the bay area and I've been trying to run numbers on what we can afford. Between the two of us, we'd be making about 200k and the homes are around the 1 Million range.

We plan to stay in the area for the long term and are trying to decide if this is a time to buy a place or not. Current rents would be around 3K.

I'm also wondering if it makes sense to put more money down (my parents are willing to help and we can put as much as 40% without too much stress). So, with a 600K loan, my estimates work out to monthly:
3K (Principal/Interest), 400 (Homeowners Insurance), 300 (maintenance/utilities), 1K (property tax) .. so that's about $4700 per month. We take home about 9,500 / mo with our current deductions. Is our housing payment too much? Our agent is saying we should factor in our tax deduction (33% federal, 15% california) making our monthly payment ~2400.

This is a lot lower than a comparable 3K rent. Am I missing something with this calculation?

My main concern is if one of us loses our jobs, will we be able to still live comfortably? I don't want to be stressed about cash flow...
Real Estate Deals
Sitting on cash with a student loan decision to make...
Added on : Wednesday November 20th 2013 05:00:15 PM
g: 0 Posted By: jd2010
Views: 161 Replies: 0 Time for another installment of "pay your student loans, deadbeat."

Backstory: Over the past 2.5 years my financial picture has gone like this:
Then Now IRA 0 15000 401k 0 30000 Cash 0 25000 CC Debt -20000 0 Student Loans -140000 -125000
I am juggling a lot of variables and want to rely on the wisdom of FWF to help me make the best decision. There are multiple issues at play making the right call here murky (at least in my opinion)

As of today, all student loans are consolidated on Income Based Repayment (IBR) at a weighted 7.2%. My monthly payment is around $900, which covers interest but makes near 0 dent in principal.

1) Employment - Employment and promotion prospects are murky due to bureaucracy and being under the sales dept umbrella at Fortune 500 employer. I could be out on my ass in a month if we miss #s and mgmt wants the stock to go up a penny or two. Job is also semi unique and am not sure how easily I could find similar employment at a similar comp level. Changing comp changes my monthly loan payment, and thus, the entire game if something should happen to jobby.

2) House - I missed the bottom by a lot and am not in any rush to buy now, but I'd like the liquidity to take advantage of the next crash when helicopter ben runs out of steam, along with any other FWF shenanigans that require some capital to scale.

3)Car - Has several issues and the carfax is ugly to where I am probably best served driving it into the ground. I may need to make a vehicle purchase in next year or in 5 years, depending on how long bubblegum and duct tape holds it together.

4)Bailout possibilities/point of no return- I have been hesitant to start going hard at my loans so far. I am at the income and loan amount combination, where if I don't see a jump in pay, I am probably better off doing the status quo for a while and seeing what comes down the chute from govt. Once I commit $ to loans I am basically opting out of whatever bailout may come in the future because my debt/income will likely be too low to benefit. If I get a promotion I'll likely be making enough to where I can knock them out in 5 years or so and procrastinating won't make sense. But as it is now I feel stuck.

Wildcard: GF will be graduating with 200k in debt in 1.5 years and taking job in health sector, with potentially much more lenient student loan forgiveness terms. We have no plans of getting married or having kids. However, we would consider a paper marriage should it behoove us from a student loan perspective where my loans may be able to be shell-gamed in combination with hers to maximize forgiveness benefits and start attacking the ones that make the most sense jointly.

As I see my options, they fall into varying degrees of the following two scenarios...

Continue to stockpile cash and pay the IBR minimums, which will cover interest and wait for the house of cards to fall and pray for free $.
1) Will be in good shape if I get canned
2) if my car takes a dump
3) if at some point I want to do a house
4) Most notably, am positioning myself as well as I can to take advantage of apotential wide-reaching student loan bailout when the whole higher ed bubble goes boom.

1) Passing onrisk-free guaranteed 7+% return (assuming no bailout)

Throw most of the 25k at student loans
1)7% return and I am a responsible FWF citizen who PHBDB.

1) Shoots all liquidity to hell, limited ability to do house or car for foreseeable future
2) Once I go down the path of actually paying back my loans, my loan total will shrink to where I will be far less likely to qualify for any govt cheddar. It is basically a 10 year decision if I decide to start paying them down.

Would appreciate outsider input as to whether Im overcomplicating this. If I do keep stockpiling, how aggressively do I then invest it ranging from 1% CD to putting it all on black in vegas?
Personal Finance Deals
Steinfeld v. Discover settlement
Added on : Wednesday November 20th 2013 04:00:08 PM
g: 0 Posted By: flwsoldier
Views: 14 Replies: 0 An e-mail came to my spam folder today about a Discover card settlement with estimated payouts between $20 and $40.
It doesn't look like it's possible to file the claim form online yet. "This functionality will be available at a later date."

I was lucky enough to get several hundred dollars in the Chase Payment Protector settlement, I'm not hopeful that will happen here, but ever since then I always join the class actions
You may be entitled to a payment under a proposed class action settlement. In the lawsuit entitled Andrew Steinfeld v. Discover Financial Services, et al., U.S.D.C., Northern District of California Case No. 3:12-cv-01118-JSW (the Action), Plaintiffs claim that Discover Financial Services or related parties (including Discover Bank, The Student Loan Corporation and Discover Home Loans) (Discover) violated the Telephone Consumer Protection Act, 47 U.S.C. 227, et seq. (the TCPA), by placing calls on or after November 30, 2007 to cellular telephones through the use of an automatic telephone dialing system or an artificial or prerecorded voice without the prior express consent of Plaintiffs and the putative class members. Discover denies these claims and denies any claim of wrongdoing. The Court has not decided who is right. However, in settlement of the Action, Discover has agreed to implement practice changes and establish a settlement fund of $8.7 million. This notice is only a summary. Details of the settlement, including information on how to file a claim, are available at www.SteinfeldTCPASettlement.com or by writing to or calling the Claims Administrator at the address or toll-free number below.

Discovers records indicate that you may be a member of the Settlement Class because Discover may have placed a call to your cellular telephone number using an automatic telephone dialing system or an artificial or prerecorded voice at some time between November 30, 2007 and September 10, 2013. Settlement Class Members may (1) submit Revocation Request Forms requesting that Discover cease making calls to their cellular telephone numbers using an automatic telephone dialing system or an artificial or prerecorded voice, (2) submit Claim Forms requesting money from the settlement in the form of a check or in the form of a one-time credit against the balance of their Discover credit card account, (3) exclude themselves from the settlement, (4) object to the settlement, and/or (5) do nothing. Class Counsel estimate that settlement payments or credits will be between $20 and $40, but could be more or less based on factors including the number of claims submitted.

You cannot receive a payment unless your claim is received by February 25, 2014. In addition to payments to the Settlement Class Members, the settlement provides for not more than $2,175,000 in attorneys fees and costs and $2,000 in service awards for the two representative plaintiffs to be sought from the Court by counsel for the Settlement Class. In the event that there are any remaining monies from uncashed checks totaling $50,000 or less, such monies will be paid to charity.

If you do not want to be legally bound by the settlement, you may opt out of the settlement by sending a request for exclusion to the Claims Administrator postmarked no later than January 13, 2014. If you exclude yourself from the settlement, you will not receive any money or other benefits from the settlement. If you stay in the settlement (i.e. do not exclude yourself from the settlement), you may object to the settlement by explaining in writing why you do not like the settlement postmarked no later than January 13, 2014. You will be bound by the settlement if your objection is rejected. If you do nothing (i.e. submit no claim or request for exclusion) you will not receive any benefits from the settlement but will nevertheless be bound by the settlement. All Settlement Class Members who do not exclude themselves will be bound by any judgment approving the settlement and will give up any right to sue Discover or related parties for any known or unknown claims relating to calls made to their cellular telephone numbers, including alleged violations of the TCPA.


Credit Deals
New hard credit check
Added on : Wednesday November 20th 2013 07:00:07 AM
g: -1 Posted By: balor124
Views: 124 Replies: 3 I bought a home June 1 and took out a loan with Everhome mortgage. Today, nearly 6mo later, I just got a hard inquiry on my report from Fannie Mae. Should I be concerned about that? It knocked my credit score down by 3 points (according to CreditKarma) but its still pretty high.
Credit Deals
I need software that will preform an audit on any type of loan
Added on : Wednesday November 20th 2013 06:00:12 AM
g: 0 Posted By: rianosaurus
Views: 127 Replies: 2 =16.0ptI have been searching for software for my job to assist us in preforming audits on our customers loans. I need it to handle various types of loans ranging from a fixed rate mortgage to a credit card / auto loan. I need it to be able to take in account that biweekly payments are being made. If you have knowledge of any such software that can assist with what I need can you please post the link to where I can find them.
Credit Deals
JP Morgan agrees to $1.5 billion reduction of principal on mortgages
Added on : Tuesday November 19th 2013 07:00:10 PM
g: 0 Posted By: bighitter
Views: 0 Replies: 0 As part of today's announcedgovernment settlement of charges with JP Morgan Chase,$4 billion in aid to homeowners is required. At least $1.5 billion of the settlement is to be directed to borrowers who owe more than their property is worth (to reduce their loan balance). An additional $300 - $500 million must be used to make homeowner's monthly housing expense more affordable, such as reducing a homeowner's monthly mortgage payment. According to the wall street journal, an independent monitor will oversee the $4 billion in consumer relief to ensure it is completed by the end of 2016.

I haven't seen anything reported yet on the details of "who" or "how" the recipients will be chosen. Stay tuned.

Discussion Deals
Leveraged Investing - HELOC @ 3.25%, have questions
Added on : Tuesday November 19th 2013 09:00:09 AM
g: 0 Posted By: Muscle
Views: 134 Replies: 4 Hi,

I'm considering leveraging some of my equity for investing purposes. I have approximately 40k equity in my condo.

I found a HELOC with 3.25% interest and these terms:

No closing costs, prepayment penalties or minimum draw requirements
Deduct 100% interest from taxes

I'll be using this money to invest into a couple dividend focused mutual funds. I know, it's risky, etc etc. I have some questions, none of which are about risk:

1) Are the payments really tax deductible?
2) Are there any stipulations on what the money can be used for? I assume not, but a lot of places do ask what the purpose for the loan is, so just wondering. I've had a HELOC before briefly, but didn't really look into it (I had it for 3 months to avoid PMI so I could hit 80% LTV).
3) Are there any fixed rate loans out there? I'm looking at Bankrate and it doesn't disclose if it's fixed or variable. From what I know most loans are variable. If the max APR is too high, it's not worth it.
4) I'm going to be doing another AOR in January for 0% APR/BT. Should I do this before or after? Credit score is somewhere between 700-750.
Question Deals
Fannie Mae hard inquiry seven months after refi?
Added on : Tuesday November 19th 2013 07:00:06 AM
g: 0 Posted By: sullim4
Views: 68 Replies: 0 I closed on a refi in April of this year with Box. My loan was sold to Provident who then sold it to Fannie. As a result of this transaction I had a single hard inquiry on my credit report from Box.

Today I got a notification from TransUnion that Fannie initiated a hard pull on my credit yesterday. I certainly didn't request it nor did I apply for any new credit since I did my refi this past April. Are they allowed to initiate a hard pull like that, i.e. did I give them permission somewhere in the standard set of loan docs I signed? I am planning on disputing it based on the fact that I never got a hard pull from Fannie on any of my 2 prior mortgages, but I figured I'd ask the folks here if I'm being unreasonable or if this is a legitimate dispute. Thanks!
Discussion Deals
Gift of $7,000. Use it to pay down student loans or down payment?
Added on : Sunday November 17th 2013 12:00:07 PM
g: 0 Posted By: packers9626
Views: 144 Replies: 3 26 years old, $44,000 salary. I own a 2009 vehicle outright. Debts as follows:

Student Loan for $8235 at 6.8% ($110 monthly)
Student Loan for $6298 at 6.3% ($85 monthly)
Student Loan for $4985 at 5.3% ($64 monthly)
Student Loan for $1266 at 1.3% ($50 monthly)

I am contributing 6% of salary to my 401k. My company throws in another 4.5%. Monthly income from my job after taxes, health insurance, 401k, etc is about $2700. I also do side work with my buddy who owns a business and average about $300 a month from that.

This $7000 gift came from my elderly grandfather. Cut a check to all of his kids and grandkids, I don't want to know all the details, but they are basically giving away his money until it gets down below a certain level for tax planning purposes. Otherwise the government taxes it. He is in his late 80s, depression era guy who worked the same job for 45 years and retired with a good pension. Bought his (small) house for $6,000 in 1950, still lives there today.

I have some savings of my own, and with this gift, I am approaching $20,000 in money I could use for a down payment, Thinking I should just save up a little bit more and buy a place of my own. Target price range would be $120,000 to $160,000. The other option would be to just cut a check paying off my most expensive student loan ($110 savings a month). I am strongly leaning towards buying a place though.

What do you folks think my best option is?
Personal Finance Deals
HELOC with high LTV?
Added on : Sunday November 17th 2013 11:00:07 AM
g: 0 Posted By: valueinvestor
Views: 124 Replies: 0 I have a property with a first mortgage of 60-70% LTV. Primary residence. I'd like to pull some out to buy a rental property cash (found a very good cash deal). I'm wondering if anyone is aware of lenders in Ohio that will do HELOCs with high loan to values on upper 600s credit? No recent derogatories. With the smaller loan amount, I'd prefer a higher APR with lower fees.
Real Estate Deals
Out of College Tax Help
Added on : Sunday November 17th 2013 07:00:05 AM
g: -1 Posted By: FalseKiva
Views: 51 Replies: 1 Hi,

I've just finished my first year at my first job out of college and take strides to be diligent with my personal finances (credit card churning, budgeting, etc all the FWF way). But, I'm new to taxes and want to know what is the best way to plan for this past year and future years to capitalize on deductions, etc.

Some details:
23 years old
120K annual salary
10K personal trading, mostly ST capital gains
maxed out 401K but did it through roth 401K (should I consider doing the regular next year to minimize taxes? My concern is if tax rates rise the roth is better)
Can I contribute to an IRA or Roth this year? Not sure how to best think about the MAGI and also not sure if I should contribute now or if I can wait until I do my taxes after 2013 ends
No mortgage so no deduction. No student loan so no deduction. I am filing as single household. Any other ways to claim deductions? Can I deduct transportation costs that were part of my job search?

Thanks in advance to the FWF community!

Tax Deals
g: 1 Posted By: Silverthunder
Views: 115 Replies: 0 This was a post (below) by dshibb from several months ago. I set off trying to take advantage of it several months ago. after web form contacting/ emailing about 15 places and not finding anything, I put the project on hold. is it worth it for me to keep searching?
Okay I've known about this for a very long time and I don't know why I haven't just come out and shared it with the FWF crowd this whole time.

The AOR happy crowd on here is always looking for good safe yield that they can drop short term money in right?

What if I told you that I was aware of a way to put down unlimited quantities of capital on something safer than a money market account that depending on your age paid out 2-3% guaranteed after a year and likely to yield 4%+ after a couple of years and didn't have any yield curve risk(like a MMA and deposit account)? This product also has cash available on about 2-5 weeks notice(if you're smart on how you handle it likely 2 weeks).

The low interest rate environment has created an anomaly in the single premium life insurance market. Interest crediting to permanent insurance policies is based on longer duration rates which are higher than short duration rates. There are numerous single premium products that back load their expenses allowing you to have a policy that turns positive almost immediately. You can abuse these vehicles as a short term place to drop cash and get higher yields than what you can get out of a deposit account. And this is all before taking into account that you also have a death benefit in case you pass away during the few years you're holding it.

Basically the game works like this. Due to interest rate environment strong early cash value products are getting interest rates associated with long term fixed income. You take out one of them drop in your cash and either when you need the money in the future or when short term rates(deposit rates) move up high enough to close the gap you surrender the contract and take your money out.

The counterintuitive part is that when you surrender assuming your under 59.5 you'll pay ordinary income taxes and 10% penalty *on the gain*. But if you were going to be putting money in a reward checking account, CD, etc. you would be paying ordinary income taxes anyway. Under this deal you get those deferred until surrender. So the key difference here is the 10% penalty, but since it only applies to earnings even after you account for that it's still a pretty good deal. If you're earning 3.5% on your money and surrender paying a 10% penalty the yield only drops from 3.5% to 3.15%. Still better than what you can get out of a normal deposit account. Furthermore unlike a deposit account the yield keeps on getting better year after year and is likely to be in excess of 4% after only a few years. If deposit rates stay low for a while that could result in some rather lucrative interest spreads over deposit rates.

Also, unlike a medium term bond fund you have no yield curve risk. If rates rise the bond fund falls. Instead the insurance carrier retains the yield curve risk on it's own balance sheet just like a deposit account and money market account.

For those of you asking 'Why don't I just take out policy loans instead of surrendering and paying taxes' the answer is that a single premium is practically guaranteed to be a MEC. That means that policy loans are still taxed as ordinary income. So since that is already baked in the smarter move is either surrender or combo of withdrawal and reduced death benefit. The small problem with the latter is that MECs are taxed on a LIFO basis which means that you would be withdrawing earnings first and basis would remain in the policy.

For those asking 'Why don't you take out a policy that has a long enough pay period to no longer be a MEC so you can get tax free loans?' well those things A) don't turn positive right away so you're taking a risk that short interest rates will rise canceling out the anomaly before you've had a chance to capitalize on it and B) If you use policy loans you have to keep rather large chunk in the contract long term to keep it in force; that weds you to holding it over the long term and if that's the case most people would be better off holding fixed income inside of qualified account negating any perceived benefit(hence why the usual advice to everybody is to only look at permanent insurance for what would have been fixed income holdings after you've maxed out all of your qualified accounts).

Few notes:
1) Make sure you don't take any product with surrender charges because you might be in and out within a few years.
2) The standard hold up for a surrender is that most carriers delay it and inform the agent of your intent to surrender allowing him to try to 'rescue' the policy by convincing you to not surrender if he wants. You can have that agent waive his right to hold up the surrender by a couple weeks. I'm not positive that every carrier will accept this, but when taking out a policy having a letter signed by the agent waiving his right to hold up the surrender should make the time period to withdraw your funds much shorter(a money market account holds up funds for a few days this would hold it up only for a couple weeks).
3) Particularly among products very competitive in the short term the commissions on doing this are very low. Usually it's in the 2-4% of lump sum amount and nothing recurring. That is low for any advisor used to either a lot more up front or an AUM fee that is paid out annually. You might notice agents not particularly that excited about doing this.
4) Increasingly insurance carriers have been increasing their commission 'clawback' periods. That means that an agent could have almost all of his commission clawed back if you surrender within a couple years meaning he now owes the insurance carrier. You may want to weigh whether it's worth it to inform the agent of your likely surrender down the road. If you're not it's likely you wont be able to ask for the letter I mentioned in #2, and just be stuck calling him to expedite the surrender down the road. Maybe you can work out some other arrangement so he isn't worried about doing all this work for you only to have his small commission clawed back in a couple years.

So essentially we're talking about arbitraging the interest rate market through a permanent insurance product. You get the risks of very short duration fixed income(like a money market account) while getting the yields more indicative of longer duration fixed income. The anomaly wont last forever; when interest rates rise the anomaly disappears and you surrender and move your money to something higher yielding.

Personal Finance Deals
Defaulting on Student Loans
Added on : Friday November 15th 2013 04:00:14 AM
g: 0 Posted By: aiccdd
Views: 210 Replies: 5 I owe 34k in student loans and my husband owes $44k.

The monthly debt amount is ~$800/month.

My question is.... we already own a home and cars. What would really happen if we stopped paying on our student loans? I understand your credit gets shot, but we already have lines of credit with multiple credit cards, and already already live in our home. I understand when we purchase a car in a few years, the interest rate would probably be insanely high. But what other financial repercussions would occur?

Personal Finance Deals
Suggestions for Inheritance Windfall
Added on : Thursday November 14th 2013 10:00:07 AM
g: 0 Posted By: Kainer
Views: 118 Replies: 6 Hi FW Financers,

I had a relative die, and my wife and I will be receiving a fairly significant inheritance ~ $35,000

I'm looking for suggestions as to what to do with the money. Wondering if I should pay down debt, invest, etc. I'd like to put some into an educational savings account for my newborn son. I'm really looking to get the best bang for my buck. I appreciate any advice.

Also, We have a 2 month old son and I'd like to be able to move to a house in a nicer school district by the time he is school age - ~ 5 years. Our house is unfortunately underwater, but we're current on payments, just Refinanced 1.5 years ago.

Current Debt:
1.5 years into a $150k mortgage (refi) at 4.0% APR - house currently worth $110k according to Zillow - Currently up to date on all payments (paying a little extra each month)
$7,843.91 Student Loan @ 4.0%
$10,779.10 Student Loan @ 4.25%
16,569.25 Car Loan @ 2.99% APR

Personal Finance Deals
Best Ways To Churn At this Point...
Added on : Thursday November 14th 2013 05:00:16 AM
g: 0 Posted By: justignoredem
Views: 101 Replies: 2 Hello FWers. I'm looking for some advice from people. Namely, these questions:
1) Should I get more credit cards (Or will it hurt my credit too much?)
2) Which Credit Cards Should I get? (To Maximize churn, good starting bonus, etc)
3) Should I get any with annual fees that I have been avoiding like the plague?

I am looking for more ways to churn money as possible. As of right now, I have stuck with nothing but No annual fee, rotating 5% category credit cards. These have been incredibly lacking lately. Apparently they are playing a game for the last year called "Match what the other is doing!", thus making them insignificant to having multiple (aside from being able to put more into the category). I want to maximize as much different revenue from all categories as possible. At the same time, I don't wantrandom cards for 1 tiny category that I barely contribute anything to - especially if it has an annual fee tacked on to it. While I don't want to HURT my credit, I'm not at a point where I think I can hurt it too much either. I have 0 loans under my belt (including college), 0 mortgage, but ~4 years experience with credit cards and 0 late fees. I do not pay interest on anything.

The other day we decided to buy $2k for wooden flooring replacement. I had nothing to do other than get a measly 1% out of it. I felt bad getting so little out of that. We just got back from a trip where we had to spend on hotels, I feel we don't get enough CashBack out of trips as well... For that, I was thinking the Marriott with 70k points, but that is an annual fee card.

Current Credit Cards:

Discover - Rotating 5% Categories
Chase - Rotating 5% Categories
Citi - Rotating 5% Categories
American Express, Costco - 3% Off Gas (Not used), 2% Travel (Use this for flights/hotels), 1% Else. Mostly this card I use for risky transactions, AMX is known for being the most reliable in helping
Bank of America, Cash Rewards - 3% Off Gas (Use this), 2% Off Groceries (Use this), 1% Else
Bank of America, Better Balance Rewards - Free $ Churn

Personal Life:
I'm in my mid 20's. I'm about to get married, my fiance has a mortgage that is entirely under her name. We have a lot of expenses coming up with the wedding, honey moon, and more. While we want to move, there currently is just no means to with our job situation. We hate the town, but we have excellent opportunity with our career. It's a mixed bag.

Anythign else, feel free to ask
Credit Deals
Personal loan as investment vehicle - Thoughts?
Added on : Wednesday November 13th 2013 09:00:08 AM
g: 0 Posted By: Muscle
Views: 30 Replies: 0 Hi,

I've been mulling over the idea of getting a personal loan and using it as an investment vehicle for a while now. I've been getting letters for personal loans from various places (probably due to my rotating 0% APR CC debt) with the latest coming from Lending Club, advertising up to $35k loan with APR starting at 6.78%. This is, of course, contingent on credit score as rates go as high as 30%.

I estimate ~20% yearly returns on my investments. This is based on custom asset allocation and I understand the risk associated with it.

My understanding is that personal loans are NOT treated as taxable income. Therefore I would only be taxed on income (profit) arising from these loans, correct?

Assuming the risk, if I can get a low enough interest rate I could make some decent cash off this. Financially, I've never had a problem juggling multiple accounts, credit lines, paying on time, etc.

On loan applications, it asks for the reason. I chose 'other'. Also, I haven't checked my credit in a few months, but it's above 700, most likely below 760 due to revolving debt, so I would qualify as 'good' credit. Since they do a hard pull, I'd like to know (if possible) what kind of interest rate I'd be eligible for prior to the pull, to know if it's even worth it.

Has anyone done this? Thoughts? Pros/cons? Any caveats?

Personal Finance Deals
'How a $2 debt almost turned into $90,000'
Added on : Wednesday November 13th 2013 05:00:11 AM
g: -1 Posted By: kriskos4
Views: 126 Replies: 1 http://money.cnn.com/2013/11/13/pf/sheila-bair-store-cards.moneymag/index.html?iid=Lead

The cliffs are this lady applied for a store credit card because of a discount they were offering. She didn't pay the bill for a few months (forgot?), her credit got dinged, and her husband got a higher rate on a home loan because of that. Of course it's not her fault, she blames 'predatory' practices at stores trying to get people to open up credit cards.

General Economics Deals
Need advice on renting out my primary home (Updated)
Added on : Tuesday November 12th 2013 04:00:12 PM
g: -1 Posted By: nasheedb
Views: 2820 Replies: 26 I'm the guy who is moving to Switzerland (http://www.fullofdeals.com/forums/finance/1300987). I am looking for some advice on renting out my primary home. Here are the details:

-Purchased the house in August of 2009 for $165,000 and I received the $8,000 credit, essentially bringing my purchase price down to $157,000
-Current value of the house is around $200,000
-It is in a cookie cutter neighborhood, and it is among the largest and most expensive in the neighborhood.
-I have a HEL at 3.99% fixed, 83 months left on the loan. Current balance $87,xxx

Monthly expenses (current):
$1214 - HEL payment
$424 - property tax (pay in full at the end of the year, this is the yearly cost /12. It will also be higher next year due to no longer being owner occupied)
$96 - insurance (pay in full, yearly cost /12)
$54 - HOA (pay in full, yearly cost /12)
Total: $1788

Property management fee will be 7% on top of this. I would need to charge at least $1925/month for rent just to break-even from a cashflow perspective, and that's before I take maintenance/repairs and vacancies into consideration.

I've had a realtor from the property management company advertise the house on MLS for $2000/month for the past 4 weeks. I've had 3 showings so far, which the realtor says is very low. When we set the $2000/month price, the realtor did a market analysis and said that price was fine. A week ago, a house that's very close to mine came on the market for rent at $1800 a month. My house is a little nicer on the inside, I have tons of landscaping work, I allow for pets on a case-by-case basis, I'm including all appliances, so I am adding a little bit of value compared to the other house, but probably not much. The realtor wants me to drop the price to $1800 a month. That would leave me in a pretty bad position from a cashflow perspective. I really don't want to go this low.

I'd like to try adding a bonus for the renter's realtor. Normally they get half a month's rent as commission. What if I were to increase this by say $500? That's 50% more than what they would get normally. Is this worth a try? Any advice is appreciated. I have to move by the end of December, but the sooner I move, the better.

I've also tried advertising the house on Craigslist for $1800 a month, but I haven't had any interest. A refinance is basically not an option, I don't want to deal with the headache of refinancing when I'm moving.
Personal Finance Deals
Getting rid of the car I shouldn't have bought
Added on : Tuesday November 12th 2013 04:00:07 AM
g: 0 Posted By: sc9092
Views: 206 Replies: 10 I started a thread a few months ago about how I purchased a car I shouldn't have when I got out of college. Now I am just about upside down on a 72 month loan for a 2012 Dodge Challenger have about 25,500 left on the loan payments are around 400/month. I was looking to just sell the car outright and try to make my money back on it but I never had any luck doing that. So I have been looking for other cheaper vehicles I could buy and hopefully pay off within a few year instead of having this long term loan and maybe the dealer wouldn't hurt me too bad. Well after a few visits to dealerships I could never get a good offer for my car so i was going to just start paying extra towards the Challenger and maybe put a dent in the loan. Yesterday I found a 2008 ford explorer with about 60000 miles on it listed for 13800. I went and looked at it and it is a nice vehicle and they first offered me 22000 for my car and I declined because that would be financing about 18k which I do not want to do. So they came back and offered me what I owed on the car which was very tempting but I was still worried because I am not completely sold on the explorer(have never owned one). Got one more offer of 26,000 which would be about 500 more than what i owe on the car and I would be financing about 13. I could do the loan for 42 month and pay about 350/month or 36 and make the payment i was on the challenger. Either way I would pay more and try to get it paid off, it just looks better to tackle a 3 year 13k loan that a 72 month 25k loan. Any advice on this?
Personal Finance Deals
Basic Finance/Budgeting Help Needed
Added on : Saturday November 09th 2013 10:00:08 AM
g: 0 Posted By: pteach
Views: 32 Replies: 0 Hi,
I just graduated and got a job with a technology consulting company in atlanta georgia. I have no idea how finance/tax works. I've pretty much had my taxes done by a family friend for the past few years and have not invested any money in stocks or ira or anything.
I want to get some advice on how to properly position my finances. (How much to save for taxes, rainy day, stocks/investing)

No student loans (worked during college)
Paid off my car (high yearly maintenance due to it being 10+ years old and 200,000+ miles)
Salary: $57,000
age; 25
Will be renting an apartment (See myself in the job for atleast 5 years at the same salary)

Personal/Food/Living/Car Maintenance: $20,000 - $22,000

I'm just an average joe with an average risk appetite in regards to the stock market investing. (I've followed the market for a little bit but never invested)

Any advice is greatly appreciated.

Thank You

Personal Finance Deals
Screwed myself with student loans. Now what?
Added on : Thursday November 07th 2013 01:00:07 PM
g: 0 Posted By: mike2358
Views: 198 Replies: 1 So the 19 year old blissfully ignorant version of me decided it was a good idea to finance a $45k/year education 100% on private loans through Salle Mae.Years later my tab is up to about $250,000 and growing. Last time I checked the monthly payment they want from me is about $2000/mo which I obviously can't pay.I make enough money to live ok IF I didn't have that loan hanging over my head and right now the loans are completely in default. I've pretty much accepted that I can't pay them in their current state and I'm not sure what to do. I've seriously considered leaving the country and working on gaining citizenship elsewhere.I'm wondering what the options are for someone in my shoes. I'm assuming my credit is pretty much shot for life now and I'm scared to buy anything of value ever (car, house, ect) because it could be seized by my creditors no?I've heard stories of people forming companies and making the company the owner of their assets and use that as a shelter but I'm not too familiar with how that works.If anyone could share some insight into my situation I'd really appreciate it.Thanks!
Personal Finance Deals
Car Loan Credit Inquiries
Added on : Thursday November 07th 2013 09:00:07 AM
g: 0 Posted By: Leaves82
Views: 0 Replies: 0 I just got a new car loan and I got notice from CreditKarma that I was hit with 7 hard credit inquiries onto my credit report. Is it typical to get this many when getting a car - and some of them are posted twice for the same reporting agency? I'm worried about the result it's going to have on my credit. I knew that getting a loan was going to affect my credit...but 7 hard inquiries just seems a little crazy!
1. BMO HARRIS B Bank Nov 5, 2013 Added 2. WILDE TOYOTA Automotive Nov 5, 2013 Added 3. TOYOTA MTR C Finance Nov 5, 2013 Added 4. BMO HARRIS B Bank Nov 5, 2013 Added 5. WFDS/WDS Credit Union Nov 5, 2013 Added 6. JPM CHASE Credit Union Nov 5, 2013 Added 7. LANDMARK CRU Credit Union Nov 5, 2013 Added
Home Equity Loan issue
Added on : Wednesday November 06th 2013 09:00:09 AM
g: 0 Posted By: CollegeSavings
Views: 73 Replies: 0 I applied for HE loan for an investment property with the bank. Property is Single Family (Duplex). For legal description, it is considered Single Family. After 5 weeks of requesting all documents (more than normal loan), bank rejected loan funding because property is Duplex. On their website as well as on the loan application, no where it was written that they don't fund duplex type. On their website as well as application, they have clearly stated that they fund single family.
Only at the point of rejection, they advised me about this issue. Bank officer indicated that it is written in their 46 page internal document that they don't fund duplex.
Do I have any recourse here?
Real Estate Deals
Savings Question
Added on : Wednesday November 06th 2013 05:00:19 AM
g: 1 Posted By: historystudy
Views: 170 Replies: 2 I'm currently 25 and am anticipating that I'll at least be looking at going for an MBA in the next 2-3 years. My debate really boils down to whether I should deposit more into my 401k or keep it outside of that account knowing that I'll need it for school.

Salary: Made roughly $60k/year for the last 2 years, now making $70k
401k: ~$13k
Emergency fund: ~$20k
Brokerage account: ~$20k
Condo equity: ~$15k after 6% selling fees assuming no taxes

The school I'm interested in will run about $90k/year all-in (tuition, housing,medical expenses, travel home, etc.) and so a total of $180k. If I work another 2 years, then I will wind up with maybe $100k in my non-401k accounts plus the ~20-25k equity in my condo and ~$30k in my 401k.

Based on this scenario, I would leave my 401k alone, and use the ~$125k I have saved up for education. After the first year, I would likely get student loans for $60-70k.

Should I do that, or should I be funneling more into my 401k to get the tax benefits now? I can stash away the full deduction allowed each year, which helps with my taxes now. I could then loan myself the money needed for school at that point, but the only challenge is that loans like this require payments every other week and I won't be in an earning position until after I find a job after graduating.

So based on where I am now, any thoughts on whether I should continue saving money in my after-tax accounts or move to pre-tax accounts?
Personal Finance Deals
Trustee Real Estate Foreclosure Auction
Added on : Monday November 04th 2013 11:00:09 AM
g: 0 Posted By: qlalani
Views: 103 Replies: 0 First time auction buyer and doing my homework. I see the following wording on some (but not all) of the foreclose notices:

"The deed of trust provides that it secures the payment of the
indebtednesses and obligations therein described (collectively, the "Obligations") including but
not limited to (a) the promissory note in the original principal amount of $78,498.46, executed by
[redacted borrower] , and payable to the order of [redacted lender]; (b) all
renewals and extensions of the note; and (c) any and all present and future indebtednesses of
[redacted borrower] to [redacted lender]. [Redacted lender] is the
current owner and holder of the Obligations and is the beneficiary under the deed of trust. "

Does this mean that I'd owe an additional $78K if I was the winning bidder (ie it's an encumbrance)? Or does this just say what the original loan was for?
Real Estate Deals
Wells Fargo Denies Student Loan and Offers $4k Payment?
Added on : Monday November 04th 2013 06:00:10 AM
g: 0 Posted By: xSTRIKEx6864
Views: 49 Replies: 0 Has anyone ever heard of this happening? Wells Fargo denied a student loan application, then 6 months later sent a letter saying they made an error and offered either the loan at a lower interest rate or offered a courtesy payment of over $4,000.

I thought this was a scam, but the phone number on the letter to call verifies out as the phone number on Wells Fargo's website. They also asked only for verification of address (which was on the letter) and name to send out a payment by check.
General Economics Deals
33 year old - how am I doing, and how can I maximize what I have?
Added on : Sunday November 03rd 2013 02:00:04 PM
g: 0 Posted By: adirondak
Views: 193 Replies: 1 I am 33 years old, working in the entertainment industry in Los Angeles - an industry known for not paying well - at least until you reach the upper echelons. I also own a tutoring company that is doing ok. I am struggling to save as much as possible and maximize the returns on the funds I do have. I'm curious to know how I'm doing financially in general and if there are any ways to leverage the money I have to make more that I may not be thinking of. Here are my details:

Salary: $52,000 w/ health benefits, no 401k
Earnings from Tutoring co.: approx $1-2k a month during school year
Tutoring co. expenses: About $850 a month
Savings: about $6000 (Make contributions whenever possible, usually from tutoring co. earnings)
Investments: $5000 (Monthly contribution of $200)
Retirement (Roth IRA): $31,000 (from old 401 ks) - contributing full amount this year to Roth
Credit Card debt: $5500 (about $2500 at 0%, 1500 at 4%, and the remainder at about 15%) - pay well over minimum each month, but use credit cards for nearly everything in order to get frequent flier points, which I have about 250,000 of
Car Payment: $310 / mo (2 more years until paid off)
Phone: $110 / mo. (need smartphone to run business)
Gym: $35/mo.
Rent: $840/mo.
Student Loans: $13,000 at 3.5% - pay minimum each month

Other: I live in a tiny apartment alone, for $840/mo. Own a 2010 Corolla (bought for $13,000 w 14,000 miles jan. 2013) 3 year loan. I drive a lot because in addition to owning the tutoring company, I tutor a lot of students as well. I put a lot of money into my tutoring company when I can in the hopes of growing it, adding to business. This year has been my worst ever, because with the horrible job market in LA, many people have turned to tutoring as a second job, so more competition. Also, people are willing to pay less this year for a tutor it seems.

I also often take classes in the hopes of expanding my knowledge base in entertainment. When possible, I've tried to audit. Sometimes, I've paid for the classes. Right now, I'm taking an entertainment finance class that I paid $777 for at UCLA extension. I find it very difficult to contribute everything to savings that I'd like to, but I still make contributions whenever I can.

How does it seem that I'm doing? Any advice?

Personal Finance Deals
Advice for a 24 year old - what to pay off and how much to save?
Added on : Sunday November 03rd 2013 11:00:06 AM
g: 0 Posted By: ucb11
Views: 89 Replies: 0 Here's another "what should I do about my finance?" thread.
I'm looking to save enough to buy a condo/small house (hopefully in a year or two) and trying to position myself to get there, here's some info about me and what I'm currently doing. Any suggestions on savings/paying debt would be much appreciated!

- 24 years old
- Got a master's degree right after undergrad, work in banking/investments
- Moved back in with the parents
- Income of $40k base + approx $11k in commissions (not sure what raise/bonus will look like until next month, 401k matching and pension based on base salary only)
- Net take home pay is about $2,700/month (after insurance, 401k, ESPP)

- Contributing 8% toward Roth 401k, or $270/month, employer matches dollar for dollar up to 5%, but deposits to Trad 401k account (Current Value: $10k/ROTH, $10k/Trad)
- Employer also contributes 4% of base salary toward pension and earns 4.5% interest

- 18% of paycheck toward savings or about $475/month (Current Value: $11k)
- Invest $100/monthly into mutual funds (Current Value: $4k), $50/month into ESPP

- $220/month - cell phone for 5 lines, contract ends soon will switch plans to get it down to $150/month
- $90/month - auto insurance
- $150/month - gas
- $55/month - parking
- $400/month - auto loan ($8,800 remaining, 2.41%)
- $350/month - federal student loans, on the extended repayment plan (I budgeted for paying on the standard plan but like the idea of having a lower monthly minimum payment and can use the "difference" toward paying down individual loans instead of having it all allocated evenly
LOAN ORIG LOAN AMT CURRENT PRIN BAL RATE MONTHLY PMT 1 12,000 13,360 6.80 95 2 12,000 12,810 6.80 90 3 8,500 8,380 6.80 58 4 8,500 8,380 6.80 58 5 3,969 3,900 6.80 28 6 2,454 2,400 6.00 17

Student Loans: I know the smart thing to do would be pay down the student loans as quick as possible due to the higher rate. However, I was planning on using bonus/tax refund to pay down/off the auto loan in the next 6 months to free up cash flow. I would then use that extra cash flow and direct most/all of it toward paying down the student loans to knock them off one at a time. Otherwise I'd have about 22 months remaining on the auto loan. Is this a dumb idea?
Savings and Mutual Funds: more or less?
401k Contributions, should I switch to Trad or some combination of both? With employer matching, I end up getting roughly 50/50 into Roth/Traditional. I figure I'll switch to Trad later on as my income increases.

I could probably do much better about aggressively paying these loans off by cutting down my spending. I end up getting about $600-700 month into my "living and fun account" that is used for gas, food and pretty much what I want.Let me know if additional data points are needed.TYIA for any advice!
Personal Finance Deals
Does MBA make sense for me?
Added on : Sunday November 03rd 2013 12:00:03 AM
g: 1 Posted By: underleveraged
Views: 11 Replies: 0 I'm age 28/29 so I'm starting to reach the point of no return. Either I go now or I'll be too old to go full-time from admission point of view. I can possibly do a 3 year dragged out part-time program while working but I'm not living near a good MBA school within commutable distance at the moment.

I graduated from a regular state university (no brand value) and I want to continue working in the financial services industry. I was able to pay off all debt (including student loans) and that was an amazing feeling. I have no outgoing payments toward any debt. What worries me about going for an MBA is the $100K debt from the top programs.

If I didn't go for my MBA, I think I could live a comfortable life just making normal salary. Probably would be able to afford a house purchase as well with a decent salary. If I went for my MBA, I would try to make a transition into a finance career in Asia as that's something I've been interested in doing lately. I believe there are tremendous opportunities there for someone like me who is bilingual, educated in the US, have good work experience, etc. It wouldn't make sense to go overseas with just my state university degree as the employment sectors in Asia care about your educational pedigree.

In summary, I have two choices:
1. Stay in the US working, save the money, and possibly do a PT later in my life as I work. I probably would never go overseas at that point.
2. Go for the MBA at a good school and pursue an international career.

Do you think the MBA debt from a FT program will be worth the long-term career benefits for someone in my situation?

Investing Deals
Best way to consolidate debt?
Added on : Saturday November 02nd 2013 11:00:05 AM
g: 0 Posted By: LeonWhite38
Views: 36 Replies: 0 This isnt for me its for my mom and I want to help her out the smartest way I can. Thats why I came to you guys. She has two different loans through two different loan companies and owes $5,000 for one and around $5,400 for the other. I dont know what the interest rates are, but I think it goes without saying that both are ridiculous.

Other than that, she has one credit card with roughly $1,500 on it and shes a little behind on her rent, electric and cable bills. Im guessing that puts her at around $15,000-$18,000 in debt. Ive looked into personal loans for her from banks and credit unions, but her credit isnt the best right now. Ive also heard to stay away from debt consolidation companies. What else can she do?
Personal Finance Deals
Who beats USAA for Insurance and Home Loans?
Added on : Saturday November 02nd 2013 05:00:08 AM
g: 0 Posted By: fortezza
Views: 64 Replies: 1 I listen to personal finance podcasts daily, and they periodically advise "re-shop insurance and savings accounts often" . It bothers me because I'm very happy with the having my non-savings and non-investment accounts with USAA. So should I bother with shopping for new insurance when I already enjoy low rates and great customer service?

Short Term Savings: Ally Bank
Long Term: Large Investment Firm

I've heard that Amica Mutual is good for insurance, but not that they beat USAA.

What do you guys think?
Real Estate Deals
Need advice on renting out my primary home
Added on : Friday November 01st 2013 08:00:10 AM
g: 0 Posted By: nasheedb
Views: 184 Replies: 6 I'm the guy who is moving to Switzerland (http://www.fullofdeals.com/forums/finance/1300987). I am looking for some advice on renting out my primary home. Here are the details:

-Purchased the house in August of 2009 for $165,000 and I received the $8,000 credit, essentially bringing my purchase price down to $157,000
-Current value of the house is around $200,000
-It is in a cookie cutter neighborhood, and it is among the largest and most expensive in the neighborhood.
-I have a HEL at 3.99% fixed, 83 months left on the loan. Current balance $87,xxx

Monthly expenses (current):
$1214 - HEL payment
$424 - property tax (pay in full at the end of the year, this is the yearly cost /12. It will also be higher next year due to no longer being owner occupied)
$96 - insurance (pay in full, yearly cost /12)
$54 - HOA (pay in full, yearly cost /12)
Total: $1788

Property management fee will be 7% on top of this. I would need to charge at least $1925/month for rent just to break-even from a cashflow perspective, and that's before I take maintenance/repairs and vacancies into consideration.

I've had a realtor from the property management company advertise the house on MLS for $2000/month for the past 4 weeks. I've had 3 showings so far, which the realtor says is very low. When we set the $2000/month price, the realtor did a market analysis and said that price was fine. A week ago, a house that's very close to mine came on the market for rent at $1800 a month. My house is a little nicer on the inside, I have tons of landscaping work, I allow for pets on a case-by-case basis, I'm including all appliances, so I am adding a little bit of value compared to the other house, but probably not much. The realtor wants me to drop the price to $1800 a month. That would leave me in a pretty bad position from a cashflow perspective. I really don't want to go this low.

I'd like to try adding a bonus for the renter's realtor. Normally they get half a month's rent as commission. What if I were to increase this by say $500? That's 50% more than what they would get normally. Is this worth a try? Any advice is appreciated. I have to move by the end of December, but the sooner I move, the better.

I've also tried advertising the house on Craigslist for $1800 a month, but I haven't had any interest. A refinance is basically not an option, I don't want to deal with the headache of refinancing when I'm moving.
Personal Finance Deals
32 Years Old - Financial Advice
Added on : Thursday October 31st 2013 05:00:09 PM
g: 0 Posted By: atca1999
Views: 138 Replies: 1 Hi Guys -

Figured id ask what the best things to do with my money is...besides buying my own place...

1) 32 Year Old male
2) 60k Income - probably 3-5 % raise per year - software company, I do market research - looking to leave.
3) Health Ins paid by employer
4) 4 % 401k match automatically (as long as put in 4 %), putting 10 % total in
5) 2002 Civic paid in cash in 2002 -105k miles
6) Savings 250k Cash, few grand in stock market , about 30k in 401k total
7) No girlfriend...
8) Live in Connecticut

$0 Car, $0 Rent, $62 Cell, , no student loans (Degree in MIS - do market research), spend approx $400 a month on food, leisure, etc in total.

Live with parents on separate floor of house, need to move out , pay $0 rent(should have long time ago before I get those comments).... Houses in area approximately 250-300k (2000 sq feet or so, obviously bigger for more and smaller for more in CT).. What should I put down on a house, do with rest of my money, etc...
Personal Finance Deals
Which settlement co's Penfed uses?
Added on : Thursday October 31st 2013 12:00:08 PM
g: 0 Posted By: finddeals2
Views: 103 Replies: 0 Hi:

I am considering going for the Penfed 5/5 program. It requires the use of their preferred title co for closings.
I am looking for homes in Phoenix metro area. While putting in the offer the Title/Closing Co is required to be stated in the offer contract as they will be holding the escrow.

Does anyone know who it might be in Phoenix metro area?

I called Penfed, and was told a closing agent is assigned when the loan is being processed.

Thanks in advance

Personal Finance Deals
g: 0 Posted By: NonReturnable
Views: 162 Replies: 0 I'm 28, my wife is 25. We have twin daughters, 2.5 years old.
My wife will graduate from college in two semesters from Penn State World Campus with a B.S. degree in Human Resources.
She has not worked for over 5 years, since she moved in with me. She quit her job, and I've been the sole source of income.
She is currently a "stay at home mom" in addition to going to school online full-time.

I make roughly $80k a year.

I owe $70k in student loans.
My loans are on the income based repayment option.
Yes, I understand that I'm not even paying the interest. The plan is, once she graduates and gets a good job, to put all of her income (besides what it takes to pay for childcare) at paying everything off ASAP.
Right now, the goal is to just keep our heads above water. Obviously we did not expect twins, and it has incurred a lot more expense than expected when we decided to have a kid.
I am concerned, if she works, my payment goes up beyond the extra money she is bringing in (if any at all) after paying for childcare.

She is concerned about not having anything on her resume for 5 years, and has started applying at entry-level jobs, to beef her resume up.
She has an offer for $10 an hour to work as a "sample lady" at WalMart, for a contracting company. This would be roughly 30 hours a week, mostly during the afternoons.

This means, we will need to start paying for childcare. This would actually be good for my girls, because they are a bit behind speech wise, and it would be very good for them to be around other kids.

I have a couple of concerns. If she works 30 hours a week, she could potentially bring home up 15k a year. This could either raise my IBR payment, or totally knock me out of IBR, meaning my payments would almost triple.
However, if she does get the job, its just going to be barely enough to pay for childcare. She would be doing it only to get something recent on her resume, to get out of the house, and so that the kids can have some time around other kids. We've looked into playgroups, and there just aren't any in our area. We live in a rural farming area.

I found thishttp://www.irs.gov/uac/Ten-Things-to-Know-About-the-Child-and-Dependent-Care-Credit

"The credit can be up to 35 percent of your qualifying expenses, depending upon your adjusted gross income."

So...I can only write off 35% of the child care costs? meaning, 65% of her income is still going to go towards our gross for the year.

Are there other child care tax reducing methods that I do not know off? Any advice?


Personal Finance Deals
Looking for ideas on using credit limits for fun (and profit)?
Added on : Sunday October 27th 2013 05:00:09 PM
g: 0 Posted By: mrand
Views: 169 Replies: 0 In the pursuit of miles and points, the wife-unit and I each have 4 credit cards that we've met the minimum spend on (on top of a few other credit cards that I hold to maintain some old credit line on our credit reports). Sum total we probably have 10 or so credit cards, each with a credit limit in the $15k to $20k range. After meeting the most recent minimum spend, I got to wondering what other reasonable risk things we could do other than just cancelling the cards and going on to the next set of offers. I'm aware of microloans, but from what I gather, the return isn't that great, although obviously I could use that to generate more mile/point activity. If the scheme involved the need for cash (or paying off a number of the credit cards), I could manage that as well. I've thought about buying expensive items (on credit card) and then turning around and reselling them for a profit, but don't have the space to be dealing cars. Considered jewels, but I don't have any first hand experience in that area, nor the time right now to become knowledgeable enough.

Anyone doing anything else along these lines? Thanks for any ideas!
Credit Deals
tax and insurance
Added on : Friday October 25th 2013 05:00:07 PM
g: 0 Posted By: jcastaneros
Views: 13 Replies: 0 Is it really necessary to put taxes on insurances? I was reading some stuff earlier

Tax Deals
US Mortgage for Expat
Added on : Friday October 25th 2013 05:00:10 AM
g: 0 Posted By: aznshadoboy77
Views: 107 Replies: 2 Hi,
I'm looking at buying a new townhouse (closing a year from now, investment loan, 66% LTV). I currently live and work in the US (on a US payroll), and I've prequalified with my current income. However, I've been tentatively offered an opportunity by my company to move to somewhere in the Eurozone, where I would most likely be paid in Euros by the European branch of my company. It would also most likely involve a significant pay raise.

If I take this offer, I would most likely be moving before my mortgage close, so I assume that the final qualification before closing would have to be based on my European pay stubs - does anybody have any experience with this? My credit score is pretty decent (740+ FICO), and I plan on maintaining my US credit cards and also a place of residence (physical address). Will US mortgage companies qualify and close me on a loan based on international pay stubs?

I know I could ask the company that did my prequalification, but I don't want to raise any red flags for underwriting later.

Real Estate Deals
Planning to sell the house and travel 48 states for 2 years
Added on : Thursday October 24th 2013 06:00:07 PM
g: 0 Posted By: Free1As1A1Bird
Views: 61 Replies: 0 Hi FW friends!
My wife and I are planning to sell our house and travel the country for 2 years, startingnext year. Our youngestkid is starting college next year. We were hoping you could give us some pointers.
Our house is paid off, no other loans either. We have gathered a lot offurniture and stuffover the years. If we sell the house, we will need a place to store our belongings while we travel. I never used a public storage. Are those public storages safe? Whatabout paying a friend or relative to rent out their basement and store stuff?
We are planning to drive around the lower 48 states and stay in extended-stay type hotels/motels. I heard that people are renting their furnished houses on a weekly basis. Are these rental houses safe? Is there a reputable web site for short term personal property rentals other than Craigslist.com and the first 10 search results on Google?
Do you recommend a car or a SUV for the 2 year long road trip?
Discussion Deals
Let's end the week with a forehead slap
Added on : Thursday October 24th 2013 07:00:11 AM
g: 0 Posted By: DSJ
Views: 99 Replies: 0 A newly registered user wrote this today on Flyertalk:

I am a medical student who has saved enough student loan money to buy an engagement ring and have around $3,000 left to attempt a getaway over Christmas break to celebrate our engagement.

My fiance-to-be (I hope!) loves traveling as do I. She has been many more places than I and neither of us are the sit and relax type. We love seeing new sights and experiencing cultures in different lights and from different perspectives. I am torn in that I could use some help with destination recommendations for Dec 27 - Jan 1. Most of the places I have found have crazy expensive rates for those dates because of peak travel season. I can get to Europe for about the price it would cost to head to Florida during those dates.

I have looked everywhere from Paris to Puerto Vallarta to Curacao to Iceland without making much headway. Any interesting/romantic/adventurous trips or ideas would be very appreciated!

Discussion Deals
Should I put 0 or 1 on my w-4?
Added on : Thursday October 24th 2013 07:00:10 AM
g: 0 Posted By: Muniee
Views: 186 Replies: 2 I'm 26, single, and own nothing. I have 50k in student loan debt, and have never filed my taxes before. I currently make $8/hr + commission, which option makes more sense 0, or 1?
Personal Finance Deals
High Mileage Auto Loan
Added on : Wednesday October 23rd 2013 01:00:07 PM
g: 1 Posted By: mwa423
Views: 169 Replies: 3 I feel odd asking a question that I really should know the answer to being that I used to work in auto lending, but this was a little different ball game than I used to work in.

I have a co-worker who got a promotion and now has to have a work truck. The company is now moving towards giving higher salaries in lieu of providing company vehicles and this position is being paid a higher salary but not getting a company truck. The company has offered to sell the company truck the prior person had, it's in fantastic condition and a good price. The problem is that the truck is a Diesel 2008 Ford F450 that has been well maintained, but it has 150,000 miles which is outside most lenders' underwriting guidelines. I've had the guy reach out to local banks/credit unions near our company headquarters and he's waiting to hear back but if anybody has any other suggestions, I'd love to hear them.

tl;dr: Does anybody know any lenders who will offer car loans on high mileage collateral?
Personal Finance Deals
Applying for a mortgage but have a bank history issue
Added on : Wednesday October 23rd 2013 12:00:06 PM
g: 0 Posted By: cap217
Views: 167 Replies: 1 Quick story...

Girlfriend and I have been looking for a house. She has a lot of student loan debt and in return credit to limit ratio is over extended. She has $120k in student loans. She makes $65,000 a year and receives some money from the HRSA program to repay for 2 years. This will get her to around $70k when that s done. I helped her with finance stuff and she is on the right track and has a credit score of 680. We have been saving but in her account mostly bc she makes more and when we want to buy a house, she will be the primary borrower.

I have only a car lease for debt. I think my AMEX and other cards might show a small revolving balance but I pay them off monthly. Sometimes it gets reported with a balance due to the billing cycle (I dont know)? Anyways, I dont make more than her and we couldnt afford anything nice in a house that I could purchase with my income.

Last week we found the perfect house in the perfect area that was underpriced. I talked to my agent and loan guy and I could qualify on my own. The house price is $99,000. Here is the general breakdown:

Income $18/hr @ 33 hr week= $30,888 year.
Monthly debt= $250
Checking $7,800

All that works out for me. I told my loan guy that I was going to deposit a check from my girlfriend for $9,000 and he said NO (her account has all our savings $40,000). Dont scar your bank account by doing that. I then realized that my previous bank statements show about $2,400 in ATM withdrawls. I buy and trade and sell guitars as a hobby. This amount of money comes in and out on a normal basis along with paypal deposits (selling on forums or eBay) and large AMEX bills (buying on forums usually) (that are 100% paid). He said this is going to be an issue.

This was a long post that is all over the place. What I want to know is; will my atm withdrawls, large AMEX payments, and paypal deposits to my checking account be an issue? How do I address this issue? If I would have known we were using my checking account and I was doing a loan on my own, I wouldnt have been doing this for the past few months. Has this hurt my chances for a loan?
Real Estate Deals
Wells Fargo Duplex Owner Occupied Mortgage .25 fee??
Added on : Wednesday October 23rd 2013 10:00:10 AM
g: 0 Posted By: viprvette
Views: 2 Replies: 0 I applied for a mortgage on an owner occupied duplex conventional loan with 20% down. The broker is quoting me .25% on top of the normal rate saying that Wells Fargo charges that fee for multi-familiy houses. Does this sound right? I was under the impression that the rates would be the same as a single family owner occupied.
Corp-To-Corp vs 1099 and Unemployment Tax Issues
Added on : Wednesday October 23rd 2013 10:00:10 AM
g: 0 Posted By: robronson
Views: 1 Replies: 0 I've recently started in the traveling IT consulting space. I want to avoid working as a W2 of an employer directly for several reasons:

1) No children, no family, so "Cadillac" health plans are wasted compensation.

2) I intend to max out retirement plans as much as possible. Many more options if not W2ed.

3) Opportunities to deduct several purchases such as new phones, laptops, etc. For my personal life I run a dirt-cheap crappy prepaid phone at 10 cents a minute. If I get a W2 job, they'll expect me to buy my own cell phone and pay for my own minutes, but I can't deduct that. As a 1099, I can buy a new phone, new phone plan, keep my existing 10cents a minute plan for personal use, and deduct the new phone/plan 100%.

I was dead set on 1099 until I learned about Corp-to-Corp, which seems like some staffing firms require that I would use in stead of a 1099. I've done some research on Corp-to-Corp but most of it seems to be tailored to the non-Fatwallet crowd who gives the federal government an interest free loan each year and is excited at tax return time to get "free money." Thus, I am proposing the question here about Corp-to-Corps because I imagine there's some high level operators doing some nifty things with them.

I do have a few specific questions and would like to open the floor to general comments on pros/cons.

1) If I'm the only person working through this corp, does it matter if I use S-Corp versus LLC?

2) Does my corp hire me as a W2 of the corp, or contract me as a 1099 of the corp, or is either allowed?

3) Are 1099s exempt from unemployment taxes (and subsequently, benefits if eligible?)

4) How does unemployment work on a corp-to-corp if I'm the sole W2 employee of my corp? From my research it appears I'll be on the hook for around $500 per year for state/federal UI insurance, at least for the first 2.5 years and then it may get cut in half or so. I ran the numbers on UI insurance, and assuming I was legally able to decide on W2 versus 1099 within my Corp-to-Corp, it seems like UI insurance is a good deal for me for several reasons:

a) You're only taxed up to the first $7k or so of income, but the maximum benefits of UI are not realized until around $40k of income. Thus, unlike social security where you're negatively penalized for making too much with respect to the ratio of payout, with UI, you're unfairly compensated for being a high earner. Since the tax stops at $7k but the benefits run until $40k or so, then if you're making $40k+, you're getting more than your payout relative to someone earning less than $40k.

b) As the owner of my S-Corp, I could decide not to take on a new Corp-to-Corp contract and make my sole employee (myself) be unemployed. And thus I have more control over my own unemployment. This is probably borderline fraud, but that also means it's borderline legitimate. So suppose the market for what I do dies down, there's no requirement for my S-Corp to take on a crappy contract I don't want when I can just terminate my own W2 within the corp and collect 6 months of unemployment.

c) The possibility exists of future federal extensions of UI benefits. This is effectively free money with regard to the cost/benefit analysis of UI insurance. The possibility exists that you pay the exact same amount ($500 annually) but get double or triple the payout in the event of unemployment. From a pure economics perspective, that has some form of value.

In summary, let's discuss the pros/cons of 1099 versus Corp-To-Corp and details of how Corp-to-Corp can work. Either in general or pick one of my topics above to comment on.

Personal Finance Deals
Fifth Third Mortgages - Careful with overpayment FYI
Added on : Tuesday October 22nd 2013 07:00:15 AM
g: 0 Posted By: hcrossing
Views: 38 Replies: 0 I've been making additional principle payments to Fifth Third since mortgage inception and just recently cancelled the escrow from the payment. I kept the same payment but Fifth Third treated the additional amount of overpayment as a pre-payment versus applying the over payment to principle. The cs lady told me that autobill doesn't work directly with the mortgage department so autobill doesn't know to do anything different with the payment. Just be careful with Fifth Third when making autobill changes. In theory, applying payments as a pre-payment this way would cost you just as much as paying the minimum amount over the life of the loan.
General Economics Deals
$88k left in student loan debt - am I on the right path?
Added on : Tuesday October 22nd 2013 03:00:06 AM
g: 0 Posted By: Killy215
Views: 122 Replies: 4 Hi there! I am new to the forums and have been reading over other posters financial woes when it comes to their student loan debt. For the last 2 years, I have been working to get myself out of all of my debt. This is going to be long, but I want to give the whole picture! A little bit of background:

3 years ago, I moved from Jersey to Maryland to take a new job, paying a decent amount over what I was making. To be immediately frugal, I moved to a much cheaper town about 30-40 minutes away from my job with my partner. When we first moved, my partner didnt have a job so I paid the bulk of the expenses, while she paid for a small part. She ended up going to school and getting her CDL, and within a year got a job. So for our first year in the house, I wasnt able to put much extra towards any of my debt. Once my partner got the job, we worked out an agreement where she took on my portion of the rent for a year, and I got to work attacking my credit card debt, which was about $15,000. I began paying it off in January of 2012 and finished in March of 2013. Im really proud of myself for this.

Now I know its time to work on my student loan debt, which is just an enormous, crushing weight on my shoulders. I know I can pay it off much sooner than the payments have me set to do, so thats what Im going to try to do. I got a B.A. degree in Psychology that I dont even use, but it did help get me the job Im in today. When I graduated college in 2007, I had $98,000 in student loan debt, and I went to a public school. I made poor choices, taking out more money than school cost so that I could live/pay rent/groceries, etc. Also, it took me 7 years to finish instead of 4 for about 65% of that time I was working full time and going part time. I wish I understood the consequences of what I was doing more, or that someone was there to guide me a bit more/answer my questions, but unfortunately, that is not the case. I take full responsibility for the loans and taking them out, and it has certainly given me a great lesson in all of this. Bottom line is, I have this debt now and Ive got to get it out of here. My student loans are split between federal and private. Ive been paying on the loans for 5 years, since 2008. The balances Im giving you are what is current. Heres the breakdown:

Private: $55,247.13 at 6.2735% (These are multiple loans that have been consolidated into one). Their minimum payment per month is $406 over 30 years. Federal: Total is $33,293.38, breakdown below. 1. Consolidation Loan: Subsidized = $5,330.42 at 2.875% / Unsubsidized = $12,426.18 at 2.875% 2. Stafford Loans: Subsidized = $3,862.02 at 6.8% / Unsubsidized = $5,143.56 at 2.35% / Unsubsidized = $6,531.20 at 6.8%The federal loans are currently in deferment because Im going to graduate school (employer-paid), but I AM paying the accrued interest. I need to get rid of these loans, and I know I need to work on the private loan first. Here are is my total amount of monthly expenses, which I have in a budget spreadsheet and keep track of throughout every month:

Rent: $425/month (split, per person)
Car payment: $396 + $102 extra for principal (paying $500/mth so that I can have the car paid off in 3 more years, shaving 2 years off of the initial term). Interest is 1.9%.
Car insurance: $530 per year I make 1-3 bulk payments in December/January.
Cell phone: $77
Gas/Heat (home): $86
Gas (car): $240
Life insurance: $20
Water/sewer/trash: $60
Netflix: $7.99
Misc: $150
Private student loan: $455.03 (I put an extra $50 each month towards the principle, Ive been doing this for about 2 years)
Federal loans interest: $260
Savings account: $100
League dues (roller derby): $35

I bring home around $3,170 per month, which leaves me around $873 per month extra. I also put 3% towards my 401k, where my company matches 50% up to 6%. (Next year, my healthcare is going up about $30 per month, so thats a factor as well). I would like to commit to putting an extra $800 on my private student loan each month. My partner and I live a pretty frugal, simple life, so I do believe this is possible, save for any weird expenses that may come up (i.e., our renters insurance or my AAA membership, which I never take into consideration for monthly expenses).

Ive already started looking for a second job, which means I would have to quit playing roller derby (I cant do 2 jobs, plus grad school, plus derby). This disappoints me because its definitely a great outlet and a way for me to keep up my spirits and exercise, but I know a second job would really help chip away at this money. Next, I received a balance transfer offer for my credit cards at 0% for 12 months with a 2% fee. So last week, I took $8,000 from this offer and paid it towards my $55,000 private loan. I can get the $8,000 paid off in a year with payments of $666 per month towards the credit card. Then Ill take another $150 every month and add it to the student loan payments with my $455. After the $8k is paid off, I hope to use another offer of 0% and do it again.

Does this sound like a reasonable plan? We dont have a lot of extras, and the ones we used to have have been cut when I started paying off my credit cards (i.e., cable). I recently looked into leaving my cell phone company, AT&T, as T-Mobile can get me a similar plan for about $20 less per month, however my cancellation fee of $260 does not make it worth it at this time. Maybe there is something Im missing with the cell phone situation that someone can give me information on. Also, Ive went through my house and pretty much sold all of my extra things on eBay and Craigslist. I have 1 or 2 other things that I might be able to get rid of. Otherwise, I take my breakfast and lunch to work every day except on Friday, where I splurge on an $8 lunch each week. This $32 is part of my $150 misc expenses.

Also, if you were me, where would you put any extra money you received (i.e., tax refund)? A part of me wants to put it on my car so I can get that paid off quicker (and thus freeing up $500 per month), but I also know it makes more sense to put it on the higher interest loan. Thoughts?

Ive really changed my outlook on money over the last few years, and Im trying to get to a better place. There are things I want to buy (like a house!) that I know I just cannot because I cant afford it. Id like to have kids, but they are going to have to wait because I cannot afford them at this time. I feel lucky to have landed such a good job and be in a place in my life where Im able to make this plan and actually execute it. Id really appreciate any insight, especially on things that Ive missed or could do better.

Thanks for listening.
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Should I pay off mom's credit card?
Added on : Monday October 21st 2013 06:00:17 AM
g: 0 Posted By: Marsavings
Views: 78 Replies: 3 My dad died in 2005. I am an only child and live 2 hours away. He had always handled all of the money in the family, so I was concerned about how my mother would deal with it. He left a couple of small life insurance policies (one thru MetLife and one thru his former employer where he retired at age 57 in 1985). She gets a small pension payment (half of the pension he used to receive when he was alive) from his former employer, along with SS. When my dad died I paid for the cremation myself and I also paid the remainder of their car loan off for my mom so she wouldn't have that to worry about. I believe she has spent all of the life insurance monies except a small amount (less than $2000) that is left in one account. She does not want to spend that money - I don't know if it's an emotional attachment to my dad, or if it's the security of having that money available. She claims it's because it earns a higher interest rate (maybe 6%??). After my dad died she opened a checking account (my dad didn't believe in checking accts or cc's - he paid for everything in cash unless he needed a car loan, etc.) as well as a Chase Freedom card that got 5% CashBack on Gas/Groceries/DrugStores at the time. They have since changed that program so the categories are revolving every quarter. I told my mom at that time the the only way she should get this credit card is if she pays it off in full every month. Otherwise the interest charges will eat up any CashBack she might get. She also has a Discover card that she uses (supposedly) just for her medication that she has to buy thru mail order. Over the years she has bought several things that I did not agree with, but when I said anything, she would say "I needed it" or "I've never had xxxx, I deserve it", etc. Examples are new carpeting, new linoleum in the kitchen/bath, new toilet, new stove, new bedroom suite, new couch. Some - like the toilet - were a necessity. But others like the flooring and furniture were just "I want it, I deserve it" situations. For about the past year she has made casual comments to me such as "I want to get that credit card paid down," etc. But I never asked, as I didn't want to butt in. If I made a comment about something she had purchased, she would get defensive and justify it. I figured if she needed help she would ask for it.

This weekend she called and asked for my opinion. She wanted to know what I thought of taking out a loan at the bank to pay off the credit card. She said the bank has 12 months interest-free and she would pay it off in that year. I kept telling her that didn't sound right as I've never heard of a bank that doesn't charge interest...credit card companies - yes. Stores - yes, 12 months interest-free. But never banks for a loan. I asked her how much is her credit card bill, that this "loan" would be for? She said about $5,000 (I was actually afraid it would be more, but still a daunting amount). So this morning I called my local brach of that same bank for clarification. I was told they have a bank CREDIT CARD with a balance transfer deal of 12 months interest free. But not loans. So I don't know if my mom realizes it or not, but she is looking at getting yet ANOTHER credit card to pay off the Chase with a balance transfer, etc.

I think at the very least, she should take the remaining money in that life insurance account and pay down her cc bill to at least reduce it. But she doesn't want to. But it makes no sense to earn some small amount of interest on a small remaining balance of life insurance money, when you have $5K in cc debt that is probably accruing close to 30% interest every month! And maybe then contact Chase and see if they will settle the account for a less amount. I know she would take a hit to her credit for doing that, but she probably doesn't have that high of a credit score to begin with anyway. She told me that her minimum payments to Chase are $150/month right now.

And to top it all off, I asked her if she'd ever cashed in any of her CashBack rebates from the Chase card, and she said no. !!! So for 7-8 years she has never contacted Chase to get any of her CashBack sent to her or credited from her bill. I don't for for sure, but I doubt ALL of the CashBack that she would have accrued during this time would still be available, as I know most of the time the points or CashBack rewards expire after a certain period of time. But I told her to contact Chase using the 1-800 number on the statement, and askabout her CashBack rebates status. She might even have CashBack money available from Discover too. I don't know which Discover card she has.

We are in good financial shape - no kids, no car payments, mortgage paid off, pay our credit cards in full every month. I am wondering if I should let her "live and learn", or should I pay off her credit card in full for her so she doesn't have to worry about it anymore, and have her cancel the account so she can't continue to use it.

I just don't know if I should bail her out or not. She is 77 years old and this time since my dad died has been the first time in her life, I think, that she has had total control of her own money. I helped her out right after he died by paying off the car and the cremation costs, and tried to pound it into her head about paying off the cc's every month. At first I thought she was doing alright because she would take the checkbook to the bank to have the teller help her balance it every month, and she assured me when I would ask that she was paying off the credit cards every month. But then she started getting all this other credit from Lowe's, and the furniture store, as she purchased bigger items, and she knew how I felt about that.

I know it's hard for her living on such a small fixed income. Her mortgage is paid off, but she still has to pay the taxes and all of the monthly bills plus medication costs,and I know she's not rolling in dough. I just don't want her to repeat this all over again if I come to the rescue and pay it off.
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How can retirees secure a mortgage?
Added on : Sunday October 20th 2013 05:00:05 PM
g: 0 Posted By: frognap
Views: 26 Replies: 0 My parents are in their late 60s, retired, with a great credit score, and healthy retirement accounts. We figured that getting a loan to move them into a 55+ community would be easy. (They will eventually sell their current home, but don't want to rush it.). At first, they were turned down completely because they don't have enough of an annual income. Well, duh! They are retired! Finally, we found someone with a clue who knew to annuitize their retirement accounts to consider how much they can pay monthly from their 401Ks on a 15 year loan. They were pre-approved for a 15 year loan with 20% down. Now the lender is coming back (because the closing has not yet been set because it is a new construction) with a "counter-offer" of 30% down because they are claiming underwriting won't approve a 20% down. Are they playing games with us? Anyone have experience and advice for securing a mortgage on retirement income? Thanks!
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Financing Car - Is this scenario possibe?
Added on : Sunday October 20th 2013 07:00:12 AM
g: 0 Posted By: mricu
Views: 29 Replies: 2 So hypothetical situation here.

Say I want to purchase a $30k car.

My credit card sends me balance transfer checks that have a promotiinal rate of 0% interest for 12 months (transfer fee of 3%).

If I have the 30k balance available on my credit card, can I theoretically put the entire purchase of the car on the balance transfer check (which is also good for making other purchases than transferring balances), and before the 12 months is up can I get a loan for the remainder of my balance from a bank?

If it is possible, would I still be asking for an auto loan 12 months down the line or a personal loan?

I figure 0% for 12 months is a good way to go even if the dealer is providing loans for 1-2%. Saves on a bit of interest. .. Unless the 3% transfer fee wipes out any advantage.
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Out of Wallet Questions and Credit Pull
Added on : Saturday October 19th 2013 07:00:08 AM
g: 0 Posted By: billcard
Views: 32 Replies: 0 Recently I had to answer out of wallet questions to activate a credit card and a debit card online. These are the questions that are something along the lines of, "Which of the following counties have you lived in?" "Who do you make you mortgage payments to?", etc... Recently I did this for Bank of America, and again just now to get a miles debit card. For the Bank of America credit and debit card, it lit up Credit Karma and Credit Sesame as a hard pull. The hard pull only stayed on the report for 2 days though and was gone for my next refresh. Anyone else had this kind of phantom hard pull?

The questions seem to really be going downhill too. Each of the three times I have done this recently, one of the questions has been unanswerable. For example, "Which of these counties have you lived in?" Answers A&B will be counties I have lived in, C will be one I have not lived in and D will be None of the Above. Similar problems with "What is your Auto payment at X Bank?" when I have two auto loans there and both payments are in the multiple choices. These are driving me crazy. Should I just resign myself to calling in?
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Take Out Unnecessary Student Loan to Boost Credit Score?
Added on : Thursday October 17th 2013 06:00:11 AM
g: 0 Posted By: km782
Views: 67 Replies: 0 I am looking for a way to boost my credit score. My score from Transunion is 747, which is ok but I don't really think it reflects my financial situation so I'd like to increase it. Two years ago it was over 780 but I decided to close my oldest credit card which began charging an annual fee and offered no rewards. I also opened a new account in its place and my score dropped 40 points as a result.

Right now I have 2 open credit card accounts. One is a Capital One card with a $15k limit and the other is a Citi card with a $31k limit. Citi recently increased my limit but Capital One refuses my requests. I have $170k in liquid assets (stocks, savings, etc.) so I am more than capable of paying off any bill that comes my way and have no other outstanding debt.

I am a part time student in grad school right now and have been paying the tuition bills out of pocket. Would taking out a student loan and then paying it off soon after that boost my credit score? My understanding is that it is helpful to have types of debt other than just credit card debt on your credit report. Id like to purchase a house in the next few years so even though I would pay a fee for the student loan I wonder if a lower interest rate on a mortgage would more than make up for it?
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Best rates for auto loan refinance
Added on : Wednesday October 16th 2013 11:00:03 PM
g: 0 Posted By: ssr2
Views: 17 Replies: 0 I am looking to refinance my auto loan of 2.9%

1. Any suggestions with regard to lenders?
2. I live in the San Francisco bay area. Does the lender have to be local or could it be any lender anywhere in the country?

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First time home purchase, please help select a lender
Added on : Tuesday October 15th 2013 10:00:08 AM
g: 0 Posted By: rjdoc74
Views: 129 Replies: 4 Hello everyone,

We just submitted an offer on a condo in CA. Any ideas what are the best lenders to shop for a jumbo home loan?

So far I have on my list:
Costco financing- closing costs capped at $600
Penfed- I heard the amount is capped in CA. Is this true?

Any other ideas?

Thanks so much!
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Federal Benefits for Graduate Students
Added on : Monday October 14th 2013 07:00:12 PM
g: 0 Posted By: Aagiants
Views: 28 Replies: 2 I have a friend who resides in PA who is currently in graduate school. She is over 26 and is making <$5,000 a year and files taxes on her own.

I've been researching federal/state programs that she is eligible and it seems that their are quite a few since she is under the porverty level and has a negative net worth.

Here are a few that i've found
-Medicaid (With the expansion of AAC)
-Food Stamps (Also not intersted)
-Cash payments (Welfare- but she has no interest in this program)

She is not looking to game the system, but her premiums are more than she can afford without taking out more student loans. Is there anything that excludes her from such programs because she is a student?

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CLEVELAND CAVALIERS - 2 Free Basketball Tickets - Ends December 2013
Added on : Monday October 14th 2013 07:00:11 PM
g: 0 Posted By: BigBoyMichigan
Views: 93 Replies: 0 You can gettwo free Cleveland Cavaliers ticketsfor select November or December games. Use promo codeDRAFTand start thinking about next years team.


2013-14 Cavaliers - NBA Draft Party Offer11/4/2013 7:00 PM to 12/17/2013 7:00 PM
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You can also get up to eight (8) additional tickets for a discounted rate!

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