What is a Secured Loan?

Michael Drew | Secured Loans

If you are one of those who doesn’t quite understand what a secured loan is, you are probably not alone.

Some think a secured loan is the same as a car loan which is secured by the car. This is not true, what a secured loan really means is that the loan is secured by the borrower’s property of the equity in their property.

And this means that if the specified monthly payments are not made, the property with which you secured the loan can be repossessed and sold so that the lender can recover the debt.

In the case of a mortgage loan, the mortgage company always has first chance to claim the property in order to receive their unpaid debt. The mortgage company has the first dibs on the property; the secured loan company has the second charge, registered in the county’s land book.

The secured loan company is the one that works to calculate and underwrite the basis for the loan so that it is affordable for the buyer. Additionally, they set up a plan to provide payment protection to assure that repayments are made in the event of some emergency situation, illness or even death.

There is always the risk that if you are unable to pay the loan payments, you may lose the property used to secure the loan. This can be devastating, but if you are a responsible borrower and place the repayment of the loan at the top of your priorities, you should be relatively safe from this kind of catastrophe.

The main objective here is to understand both the risk and perks of a secured loan and in addition to being certain that the payments you will need to make are affordable for you.

Often, in the event of a secured loan, the secured loan lenders will tend to offer an even better overall deal, since they feel safer in getting back their money. Secured loans may be offered for a long term with even smaller repayments and ultimately be more affordable for you.

Another plus is that usually with secured loan lenders are willing to loan larger amounts. Homes such as summer or winter homes, home extensions, home improvements and even consolidation loans where the person’s total existing debt is combined into one, more affordable payment. This type of loan could give you the fresh start that you need to improve your financial future.…

Calculating FHA Closing Costs

Michael Drew | FHA Loan

When applying for an FHA mortgage loan you need to be aware that there will be closing costs. Closing costs can be paid by the seller or builder if they agree in advance or some can be tacked onto your principal balance. These are usually your prepaid items like PMI.

A good estimate of FHA closing costs is approximately 3% of your principal balance. This means if you are borrowing $200,000 then your estimated closing costs would be approximately $6,000.

FHA closings costs charges can include the following items:

  • Application fee
  • Credit report fee
  • Origination fee
  • Title search and insurance
  • PMI – Insurance
  • Documentation preparation fee
  • Closing Attorney
  • Recording fee and transfer fee
  • Survey
  • Home inspection and termite inspection
  • Courier fee / Recording fee (if any)

You can use an online FHA closing cost calculator to help you estimate what your approximate cost would be. A lot depends upon what you have negotiated on the sale with the seller. In today’s volatile housing market sellers and builders are more apt to negotiate and pay some or all of your closing costs.

Most online lenders have these loan calculators on their websites. You can also access the HUD or FHA website for more information. Local banks and mortgage brokers can easily help you apply for an FHA mortgage loan but you can also use websites like Lending Tree where they secure you quotes from different lenders.

An FHA loan is perfect for those with less than perfect credit and for those short on funds. These loans make home ownership affordable. With an FHA loan you will need just 3.5% of your own funds for the down payment. This money cannot be a gift from a friend or relative. Your credit score can be in the 500 point range with an FHA loan. They take explanation letters to help get your loan package approved by the FHA underwriters.

With interest rates at their lowest in years it is the perfect time to buy a house. Home prices are also extremely low due to the state of the economy. An FHA loan can help make your dream of owning a home a reality. Contact a local Real Estate Agent to help make your dreams come true.…

all about payday loans

Everything You Need to Know About Payday loans

Michael Drew | Payday Loans

Two types of loans exist out there – short term and long term.

Nowadays, most of the people prefer short-term pyday loans because you will grab the money almost instantly. Most of the direct lenders try to provide the money within a couple of hours.

Bear in mind, it is the most expensive loan and sometimes difficult to pay it back. Usually, you have to return payday loan within 14 days. If you don’t want to face any complicated problem in the future, then you should opt for another loan. However, a payday loan can proobably solve your all complicated problems with ease.

It is completely different from long-term loans because it doesn’t require good rating and collateral, etc.

Following are the benefits, disadvantage and interest rate of payday loans:

Important things to know about payday loans

Payday loans are quite popular in the US. Some of the websites (like ELC Loans) are providing same day online payday loans. After approval, they are crediting money within just a couple of hours in the account.

Additional expenses

Apart from the higher interest rate, at times you have to pay the additional expenses to the lender. Don’t pay more than $10 of additional charges.

Extra charges

According to professionals, if you aren’t paying the loan on time, then you have to pay a lot of other charges. Therefore, one should pay the loan at the agreed time.

What about documents?

If you are in an emergency, then nothing is better than direct deposit loans because lenders are providing cash almost instantly. Here are vital things that one needs to take into consideration before getting the payday loan:

No essential documents required

If you are taking the long-term loan, then you have to give essential documents to bank such as bank statements, papers of business, essential identification cards, etc. When it comes to a short-term loan, you don’t have to provide a collateral.

Instant money

If you are applying for a payday loan, then you could get the money in just one or two hours. It is a short-term loan that doesn’t contain any complicated process. The lender will transfer the amount to the bank account. And then on agreed date will automatically deduct loan amount from the bank account.


Nowadays, you will able to apply for a loan from online websites. However, you should check the hidden charges and therefore, read the terms & conditions carefully. Don’t skip terms and condition because it can create a big hole in your pocket.

Discuss the additional rates

No doubt, a payday loan is quite essential in the sticky situation, but sometimes it is dangerous for you. You should repay the loan on time.

Stay away from scam

Bear in mind, plenty of scammers are out there. When applying for the loan online, you should always choose a reputed and trustworthy company like ElcLoans or LendUp. Pay close attention to the reviews. Make sure that you are finding genuine reviews over there.

Talk to the lender

After getting your loan, you should pay it back within 1-3 weeks. Otherwise, you will get charged with additional fees. However, if you want more time for repayment, then you should talk with the lender and discuss the situation with him.

So what’s the final verdict?

In a nutshell, whether you are taking a short or long-term loan, you need to consider above-mentioned vital information.…

secured loans

Secured Loans – Risk Free Monetary Assistance

Michael Drew | Secured Loans

Life is itself full of risks. So while availing loans people must procure risk-free loans.

With secured loans, an individual can be free from any tension and worries.

These loans can be called a minimal risk loan which means that it has a negligible risk for the money lender. The degree of risk taken up by the lender is considerably lower because these loans are supported by strong assets.

These types of loans are those type of loan in which the borrower has to pledge collateral that will forfeit in the event that if he cannot pay back the loan. In these financial schemes, there is some valuable property that acts as security. If something happens to loan amount then the bank can recoup that money by taking the property back.

This financial support is better because it has a lower interest rate than other kinds of loans like unsecured loans. On the other hand, unsecured loans have a higher rate of interest because they have no property securing the loans.

It is easier to get this financial support because there is a property that is held as collateral on the loan as compared to unsecured loans.

While in the case of all loans, the borrowed amount varies from one lender to another. It is also dependent on the credit history of the borrower. The amount usually depends on three factors namely the valuation of the real estate, the financial background, and the personal state of affairs.

This monetary support helps individual to consolidate debts into a loan that has a low interest rate. When you have debts that are holding high interest rate, these finances are a good way to decrease your monthly bills and turn them all into one easy payment. These loans are long term loans and there are also no restrictions regarding the usage of the cash amount.

A secured loan is helpful for those persons who require large sums of money and borrowers need a long duration of time to repay it. As there are various lenders in the market who offers loan so you should be looking for the best deal that is available and suits you most.…

fha loans

FHA Loan Basics and Benefits

Michael Drew | FHA Loan

An FHA loan is basically meant to make things easy with a lender when somebody wants to be a homeowner or needs refinancing. In this sense, the Federal Housing Administration doesn’t actually offer loans, but simply insures them. A summary of the benefits of these loans would include lower down payments and closing costs, and a lower credit threshold.

This means the lender can offer better terms and many people who would otherwise not qualify on credit grounds are able to get a better deal. The interest rate charged by a lender for the same loan varies based on a person’s credit score. But if it is insured by the Federal Housing Administration, the lender will offer an interest rate that’s usually only available to people with much higher credit scores.

Nowadays lenders are making sure people pay huge down payments for mortgages in case the property value drops further. At such a time, an FHA loan offers prospective homeowners a low down payment.

The mortgage finance also includes most of the closing costs.

The net effect is that the homeowner gets a good rate on a mortgage without a big down payment or a high credit score.

For those who need to buy a house and do some repairs or remodeling, it’s possible to get all of it financed as a single mortgage. A new trend that many homeowners are opting for is to make energy-saving improvements, which can also be included in the mortgage.

The Federal Housing Administration will even support reverse mortgages where the homeowner wants cash in return for diluting equity. There are, of course, certain guidelines and restrictions that apply. For instance, there is a ceiling on property values that vary based on the location.

There are also fewer repair demands now than before. For instance, unless a roof is leaking it doesn’t have to be replaced, even if it is old.

The summary of it is that an FHA loan offers all the benefits it has had over the conventional mortgage, and now it is also much less restrictive.…


Overview Of Minority Grants

Michael Drew | Minority Grants

The US government recognizes that there is a sector of people who do not have as much access to benefits, amenities as the majority do, and therefore they are offering several types of grants to fill the void.

In fact, there is some speculation that these are some of the easiest grants to obtain.

Housing Grants

Housing grants for minorities are just one of the many financial assistance programs available today.

While these grants are available to traditional minorities such as Hispanics, Asians and African Americans they can also apply to displaced workers or single parents.

If you are in need of housing assistance you can apply with your local housing and urban development office, they receive the majority of federal and even local funds.

School Grants

Advanced schooling is essential to improving financial income potential and for minorities, this is especially important.

Examples of possible applicants might be the retired worker who finds it necessary to attend school in order to increase their skills and return to work.

In order to find the minority grant that will assist you in returning to school speak with someone from your college’s financial aid department, or a local minority advocacy group.

Business Grants

Minority grants for small business are available from several sources as well. Starting your own business is often the quickest way to self-sufficiency and self-confidence.

Wealthy benefactors, government entities and even banks recognize this fact and have made grants and loans available for a number of different business types.

Call your local small business administration or similar organization for more information on about this type of financial assistance.…

car loans

Car Loans for Teenagers – Do They Exist?

Michael Drew | Car Loans

Teenagers might want to get a new car.

But is that possible at such an age? Would lenders agree to give the car loans to teenagers?

The approval of the car loans depends on several factors – employment, credit scores, and credit history. There are some lenders who would not agree to give you the loans if you do not have a long history.

Remember that you cannot be titled as a creditworthy person just because you are able to show a decent score.

Lenders would also want to have a look at the credit history – like they would see how many lenders dealt with you earlier and how you have paid them. If you had paid all lenders on time then the car loans would be easily given to you.

Many people also ask me if its possible to get the car loans if they have a high income but not a long history. This is particularly applicable to the case of a teenager. A teenager might have got a high paying job but lenders would still be reluctant to give the auto loans if there is not enough credit history.

Are there options for teenagers to get the car loans?

Some of the options available to the teenagers to get approved for the car loans would be:

  1. Establish the credit history and then apply for the auto loans – I preferred this method when I was young. That was because I did not know any cosigners. My parents also had a bad credit score and i could not ask them.
  2. Get a cosigner – this is another option for teenagers to get the car loans. Cosigners must be a creditworthy person. This is a primary factor in determining a good cosigner.
college savings

Five Reasons to Have an Upromise Account

Michael Drew | Tips

What is Upromise?

Upromise is a free way to bring in college savings off of the ways you spend your money. I need to say this early for those that think that this may be one of those gimmicks; IT ISN’T. Upromise is one hundred percent legitimate.

The Way it Works:

It is simple.

Go to upromise.com.

Sign up for an account, which is easy and self-explanatory once you get there so I won’t get into how to do it.

There are a variety of ways it works in terms of college savings. You can use your account for your children or if you don’t have children, use it for yourself to pay for college or even pay off student loans. It’s free money you get by doing your everyday shopping.

Upromise has a network of hundreds of companies, such as Verizon Wireless, proflowers.com, Aeropostale, Dillard’s, J.C. Penny’s, Barnes and Noble, Best Buy, Walmart and many, many more. Hundreds more to be precise.

Upromise does not cost you a dime. It stems from Fannie Mae. It is a fantastic and proven way to add contributions to college money. And it is recommended by the following companies: Vanguard, USAA, Charles Schwab and many, many more. Hundreds more to be precise.

When you get an account you go to link accounts if you have a college savings plan for your child. The process is simple and easy to navigate so I won’t get into the specifics. After that, you add credit cards to your account. I recommend adding all credit cards to your account and debit cards. Then, if you are smart, ask the grandparents to do the same. (If you have any questions at all, just leave a comment at the bottom of this article and I will respond or go to this link) If you do have relatives who sign up make sure that they know how to link their account to your child’s or your own college savings plan or student loan repayment plan.

Now, here are the six things you should know about Upromise:

1. Purchases

Purchases work like this. Let’s say you need an auto part for your car, such as brakes.

Well, go to AutoZone and buy your breaks. If you have your card registered with Upromise, AutoZone will pay 4% of the purchase to your child’s college savings account. Advance Auto Parts pays 4% too and Auto Parts Warehouse pays 6%. If you have to buy a plane ticket, airlines companies (Delta, South West, Alaskan, etc…) will pay between 1-2% of the ticket price to your kid’s account.

If you go through a booking company (Orbitz, Expedia, Priceline, Travelocity, etc…) they pay between 1-3%. Think of it this way, if a company pays 3% then that means they are willing to send $30,000 out of every one million to kids college. Not bad.

AT&T; pays $25 for every new subscription. That means if you are thinking about getting a new phone plan through AT&T;, hey, you get a bonus. Verizon pays $18.

Flower companies are currently paying 10%. Walmart.com (Big deal here. Pay attention because only Walmart.com, not the actual store) pays 1%. Bath and Body Works pays 3%. Even Ebay pays 2%.

2. Upromise Credit Card

Upromise offers a credit card. Unless you plan on paying the balance off completely at the end of every billing cycle I would highly insist you not go this route. The interest rates are 12-20% right now on balances remaining after the billing cycle. It is basically the opposite of productive savings.

However, if you do plan on paying it off on time then this is a great way to increase the savings account. Use this card at the participating stores or websites and you get an extra 2-3% toward college savings on top of whatever the store was paying. So, that 4% from AutoZone would turn into 7%. If you were going to have to buy new breaks, you might as well get a little something back.

It’s also a good way to build credit if you are responsible.

3. Great Certificate of Deposit Rates (CD’s)

  • 12 Month: 1.30% APY
  • 36 Month: 1.75
  • 60 Month: 2.35

These rates are offered by Sallie Mae Bank

4. High Interest Savings Accounts

APY 1.30%

This is the highest APY I have seen for a savings account. So it is definitely worth checking out.

Upromise will also match your Upromise earnings by 10% if you have this savings account.

5. Student Loan Programs and Scholarships and Grants

Upromise has student loans. If you stay current on their payments you can earn an extra 2% toward the principle. Rates are competitive with others and the limit is the full price of the education.

If you are looking for scholarships, Upromise awards yearly scholarship money. Also, Upromise has a thorough scholarship search tool. Click here to check it out.

It also has a comprehensive page dedicated to different government grants. Click here for more information.

Linking Accounts:

You can link savings accounts, student loan accounts, any college savings account, 529 Plans from any carrier and they have many other options.…

Top 6 Alternatives to Payday Loans

Michael Drew | Alternatives

Apart from payday loans, there are also other options which you can opt for.

In this article, we have provided a list of options which you can look at for you to make an informed decision before taking our payday loans.

Let’s get started:

1. Negotiating for a favorable payment plan with your creditor

You may have been faced with a credit which you should clear within a certain period of time, but you realize you don’t have enough cash.

You can opt to ask for more time for you to earn money out of your daily activities which you will use to clear the debt.

Most creditors will offer you an extension for you to look for money. In case you are employed, you can earn your salary and settle the debt.

2. Take an advance salary from your employer

You can easily do away with loans after you decide to take an advance from your employer.

The employer will offer you the money and pay you less the amount at the end of the month.

The money you will be offered will be your money, this will enable you to avoid paying interest.

3. Borrowing money from emergency fund or savings account

You will easily avoid relying on loans after you have been faced with an emergency through borrowing money from your savings account.

This is only applicable for those who have opened savings accounts. In case you do not have a saving account, you should make an effort of opening one so that you will avoid being stranded in cases of emergency.

4. Take a credit union loan

If you are a member of a credit union, you can request for a union loan.

Most credit unions will offer you a loan which will be more affordable to you than the one that you will take from a bank. The credit union loan will easily help you become stable because it is offered at low interest rates and the repayment plan is very flexible to suit your specific financial situation. Read more about credit unions here.

5. Talk to your relatives to lend you money

There are some of your family members and close friends who are financially stable. You can ask them to lend you the money which you will return after a certain period of time. Good people will be willing to offer you the money so that you will use it to solve your urgent needs. After you receive the money you should keep your promise and return the money when time to refund comes. There are some people who will be given the money and they forget about the relative who helped them. This is risky because the next time you will be in trouble nobody will be willing to help you.

6. Utilize consumer credit counseling

You can talk to consumer credit counseling service providers for them to negotiate on your behalf so that your creditors will offer you a plan that will enable you to settle your debt.

Remember consumer credit counseling bodies will not offer you a loan, but they will negotiate on your behalf so that you will be offered a plan that you will easily work within and settle your debt.


Although there are many alternatives to payday loans, payday loans still stand out as the best for you to access help when in need of urgent money.

You will easily apply for any amount of money online and you will be approved almost instantly. You will not have to prove that you have good credit records like other types of loans.

The money you will be offered after you apply for payday loans you can use it to solve any emergency that you may be faced with. This is unlike other types of loans which will require you to use them on specific purposes.

Sometimes faxing can consume a lot of time, but you will easily avoid it after you decide to apply for a payday loan online.…