Refinance With No Income Verification - Getting the Mortgage You Need Today!

1. There is a fight, a tug-of-war if you will, in between savers and debtors in this country. Savers Lament On the saver's side, conditions are dreadful. Interest rates on certificates of deposit (CD) have dropped substantially to the point where the typical rate for a 1-year CD is 0.55% and simply 1.63% for a 5-y CD. Reflect on that for a bit ... your money locked-up for 5 years making just 1.63%! Other savings cars are having a hard time too. For instance, a popular fund that contains corporate bonds from Wells Fargo, AT&T, Wal-Mart, and other blue-chip American business has a typical maturity of 12 years and presently yields about 3.75%. That's 3.75% of taxable interest income. Presuming your tax rate is 33%, you're entrusted to an efficient, after-tax yield of 2.5% which, my buddy, is less than the historical inflation average of 3%. So, while your bond financial investment is better than money in the bank and secures you to some level against inflation, you still end up with 0.5% lower buying power every year. So savers can't be too delighted about this. While Customers Rejoice Borrowers, on the other hand, are having the time of their lives. Last week, the average 30-year fixed-rate mortgage hit its lowest level of 4.19%. The kicker here is that home mortgage rates must actually be more than 0.5% lower - in the 3.8% range - based on their connection with interest rates on Treasury bonds. However, rates are unlikely to go much lower so here's a suggestion: If you remain in the market to refinance, waiting is probably not going to help you much. Moreover, customers of mine are obtaining millions at 2.15% to money their company activities. Seems a Little Unfair Without taking an ethical stance, it does appear a bit unreasonable that savers, who in a sense are the "good guys" building wealth for their future, contributing capital for economic growth and milebrook financial conserving for a rainy day, are being punished for the actions of reckless borrowers and greedy lending institutions. Debtors got in over their heads, didn't take affordable precautions, and are now getting loan modifications and reduced rates on the cash they owe. Banks experienced massive losses since of bad loaning practices and caused this drop

2. in rates to ultra-low levels. However, this kind of conversation doesn't get us anywhere. What has occurred, has actually occurred - fair or unreasonable. So where do we go from here, and how do we profit from all this? What Customers Can Do Take a look at your finances from a customer's viewpoint. First: re-finance your home mortgage NOW if you can because rates probably aren't going to fall much lower. Second: store, shop, buy a much better rate on your credit card. Borrowing costs are dropping all around so why should you pay the usual high rate on your charge card? Find banks that are hungry to provide you cash such as smaller sized organizations and Credit Unions, and avoid mega-banks that usually have all the money they require. Third: get an organisation loan if you require the money. Banks are chilling out and making loans at relatively low rates that are extremely compelling in spite of the risk of slower organisation in this weak economy. However, utilize sound judgment and good judgment as you take on more debt. Take on "excellent" debt that funds your home purchase or properties that value in worth. Stay away from handling "bad" financial obligation for diminishing possessions you can ill afford such as a new cars and truck or boat. If you need to take on "bad" financial obligation, make sure it is short term and pay it off extremely rapidly. What Savers Can Do Now the hard part: discovering offers as a saver. First: look for a longer-term CD that will change higher if rates rise. There is little worse than locking your money in a 5-year CD at 1.50% only to see rates rise to 5% two years from now. Second: consider buying corporate bonds with maturities of 5 years or less. These bonds still yield more than CDs, however ensure you understand what you are purchasing - if the corporation declares bankruptcy, you might lose an excellent piece of your "safe" investment. Third: think about purchasing high dividend-paying blue-chip stocks. Warren Buffet recently stated that stocks are cheaper than bonds right now, and he's right. There are numerous strong business out there whose dividend yields are above 3%. For example, Altria presently has a dividend yield of 6% and a solid history of constant dividend payouts. So ... it depends on you to be a winner or loser in the savings and borrowing game. All you need to do is know the facts, choose to act, get on the phone or in your car, and begin getting your affairs in order.