Transferring Your Mortgage

Couple-Moving_WEBTransferring your mortgage to a new lender can lower your interest rate, reduce your monthly payment or even let you to pay off your loan early. But, first you must determine if it makes sense.

First, look into loans with shorter terms. If you currently have a 30-year fixed-rate loan, refinancing to a 10-, 15- or 20-year term will lower the total amount of interest you will pay and let you to pay it off faster. Then look at rates. Generally speaking, if rates are lower by one percent or more, it may be a good time to transfer. But, when shopping for rates, be careful. Lenders offering no points and fees usually charge higher interest rates.

To figure out whether it pays to transfer, you must calculate refinancing costs and determine how many months will it take to break-even. You should consider transferring if you plan to stay in your home for more than the time it takes to break-even.

Remember, you can also transfer personal loans and credit card balances and save money. By transferring a loan to a new lender you can spend less money each month. So, no matter what kind of loan you currently have, you should check out your refinancing options with several different lenders. Check out our website for more information including our current rates and the various loans we offer. Remember, transferring a loan can help you squeeze more money out of your monthly budget and save more at the same time!

Transferring Your Car Loan

Transferring or refinancing a car loan with a different lender is one of the best kept secrets around for saving money, but most people never think of it.

78428822_Convertible_blogCar refinancing is like mortgage refinancing – only easier, quicker and without closing costs. When you transfer a car loan, you pay it off with a refinanced loan from a different lender that offers some benefit, such as a lower Annual Percentage Rate (APR), longer payment term or cash offer. A lower APR can reduce the amount of interest you will pay over the life of the loan. A longer term could help lower your payments. And, a cash offer can simply put money in your pocket.

However, if your current interest rate can only be reduced by a few points, transferring your loan probably won’t save you enough money.

Begin by researching lenders. Credit unions, banks, finance companies and online lenders refinance car loans, so be sure to compare rates. And, be prepared to research new lenders because most will not refinance their own loans. Be sure to visit our website for additional helpful information including our current rates and the many benefits we offer.

Smart Ways to Overcome Holiday Debt

ImageFor many, getting in debt over the holidays is unavoidable. If you are one of the many American consumers who put one (or five) too many holiday purchases on a credit card, you don’t have to let your spending hangover ruin the New Year. Now is the perfect time to put together a plan to pay off that debt as quickly as possible. Here are some tips to effectively deal with that holiday debt.

Size the breadbox. First, you must get a handle on just how big a hole you’ve dug. Create a comprehensive list of all the debt you accumulated just over the holiday season. Review all your credit card statements and calculate how much you spent on decorations, gifts, events, dining, entertaining, and other holiday-related expenses. Knowing this total figure can help you set reasonable goals for paying it off.

Develop a payoff plan. Take a good look at your budget and ask yourself how much you can realistically set aside each month specifically for credit card payments. Remember, in order to make a dent in your debt, you must pay more than the minimum payment each month. If you can’t see yourself paying more than the minimum, start cutting back elsewhere to free up some money – cut back on cable channels, scale back your cell phone package, or perhaps eat out less. Remember, a few temporary cutbacks now will help you pay down your debt faster.

Consolidate your credit card debt. Take advantage of 0% Annual Percentage Rate (APR) transfer credit cards to reduce total interest payments on the debt you’ve accumulated. If you can’t pay off the full amount of your holiday debt within the next couple of months, spread it out over six or twelve months at a 0% APR. Just be sure you understand what the interest rate will become after the promotional period is over so you don’t end up paying back all you’ve saved with a ridiculously high interest rate.

Stop using your credit cards. Everyone in your household has to stop using credit cards for day-to-day purchases. Period. So, make sure family members who share credit card accounts understand this.

Find income elsewhere. If you are truly motivated to eliminate that holiday debt as quickly as possible, you could look for another income stream. Think about taking on a part-time job. Perhaps you can create a side business out of a hobby. Or, you may even consider selling some personal items on auction websites to generate some quick cash to pay off that debt well before the next holiday season.

Use bonus money to pay off debt. If you have recently received a holiday bonus — or you are filing your taxes early and are getting a refund — use that extra money to reduce your holiday debt as soon as possible.

Whatever you do, don’t simply carry this burden on into the next holiday season and repeat the whole cycle. Take care of the holiday debt you’ve accumulated now and make the 2013 a year with fewer financial anxieties.