Is it a good idea to discuss about the family finances with your kids?
By financen | July 24, 2009 - 4:06 pm - Posted in Family Finances

Can you tell how much your parents earned when you were just ten or eleven years old? Most of the people will not be able to answer a question like this one. What’s the reason behind it? Answer is that there are many families who do not want to discuss about their finances with their kids. The kids won’t even come to know whether they belong to a rich family or not until they get some expensive gifts from their parents in their birthday or during the Christmas. When a vacation is canceled by the parents due to some financial problems, the kids think about why it got canceled or if their parents are bringing home a box of donated cans from a food drive.

There are many families who believe that they should not be discussing about their personal finances with their kids. They think that the kids do not have to interfere in such kind of family affairs. What happens if you have been buying all expensive gifts and food items for your kids and suddenly you lost your job and you could not afford buying these items for your kids anymore? The lack of income is going to affect the lives of the kids so their should be some kind of communications with the kids about family finances.

Discussing about the family finances does not mean that you have to show your pay check to your kids every month or have them make important financial decisions but it is a good idea to keep them involved and informed. It is a part of teaching them about money and life. Kids are going to follow your footsteps. If you do not discuss about the importance of money with them, they will not realize its importance when they grow older.

Teach your kids about the importance of money. This is something that they won’t learn in their young age in the school. Make them aware about the importance of money, savings, investment, and most important staying away from credit. If you teach them good lessons, I am sure you will also save yourself from falling into any kind of financial mess. You can set examples in front of your kids if you are managing your finances properly.

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How to Secure the Fixed Rate Mortgage
By financen | July 10, 2009 - 1:52 pm - Posted in Fixed Rate Mortgage

When looking at different mortgages and mortgage rates, you may want to consider how the option you choose will change your current lifestyle – if at all. In most cases, the mortgage payment will be much larger than your rental or lease payment, but if you choose the right loan, you won’t have to worry about making this payment each month. This is why more borrowers are choosing fixed rate mortgages over other mortgage options. Here’s what you need to do to be sure you that can secure this kind of mortgage.

What is a Fixed Rate Mortgage?

A fixed rate mortgage is a mortgage in which the interest rate never changes. From the time you begin to pay off the mortgage to the time you complete paying it off, you will be paying the same amount each and every month. Many people enjoy this kind of mortgage contract because it allows them to plan ahead for their expenses. It also allows them to not be subject to rising interest rates or to any changes in the market. These mortgages can be extended over 15 or 30 years. However, since these payments often tend to be at a higher monthly cost in comparison to ARM mortgages, they aren’t for everyone. Here are the ways you can increase your odds of qualifying.

 

 

Have Good Credit

First of all, you need to be able to show the lender that you are able to make the payments every month – and that means you need to have a good credit rating. You can check your credit score by contacting any of the three major credit reporting agencies – TransUnion, Experian, and Equifax. Or you can check with some credit card companies as they can access your accounts if you give them permission. You can help to increase your credit score by paying your bills on time and reducing your debt loan – credit cards especially.

Have a Steady Income Level

You will also need to show the lender that you are capable of making your payments every month, which means that you need to have a steady source of income. If you are employed this is easy to prove as you can show lenders your pay stubs. If you work as a freelancer or are self-employed, you will need to show receipts and invoices from at least a year of employment to help show that you are looking to continue to make money in the future.

Talk to Many Lenders

Of course, in order to get the best interest rate on your fixed rate mortgage, you will want to check with a variety of different lenders. This will help you get the best rate for your specific needs. In addition to talking with your local banks and credit unions, be sure to also look online to compare interest rate quotes and other agreement terms.

The fixed rate mortgage is for the borrower who likes the security of having the same payments every month. And while many lenders will try to talk borrowers into the ARM loans because the interest rates can be very low at times, the varying monthly payment may be lower, but it also might be higher than you expect it to be.

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