How Interest Rates Work

If you want to purchase something now but do not have the cash to spend, what you can do is to borrow it. This borrowing does have a cost though, it is called interest. It is an amount that you have to pay on top of the money you have loaned– the principal amount. The [...]

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Is The Buy And Hold Strategy Dead?

The buy-and-hold strategy of stock investing has long been the mantra of sustainable portfolio growth.  The basis of the strategy is to buy a good company and hold onto it for years until it turns a profit—because it is a good company and the average stock return historically has been 8-10%.  The best investors have [...]

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The Initial Costs of Buying a House: It’s Not Just the Down Payment

When buying a house, many people just worry about having the down payment and getting approved for the mortgage.  However, that’s not all you have to worry about monetarily.  Although the down payment may be a significant part of your home purchase, there are many other costs associated with owning a house.  In this article, [...]

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Things to Consider When Buying a Car

There is much more to the purchase of a new car (or a used one) than simply exchanging money for goods, or signing a loan agreement. The cost of the car isn’t just what it says on the sticker. Particularly if you use your car every day or several times a week, there will be [...]

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How to Pick Stocks Like Warren Buffett

Warren Buffett is the greatest investor of our time, bar none. He started out with $90,000 (in 2009 dollars) when he graduated college. His net worth is now at roughly $44 billion. So should he be someone you should be listening to when it comes to investing?  I would say so.  If you want to [...]

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Do 80/20 Piggyback Loans Still Exist?

Since 2008, we have seen a rapid decline of available home loan programs due to the credit crisis.  No longer are banks allowed to give out mortgages with unverified income.  And the days of no-down payment loans are over.  There is a duality to this tightening of credit.  The tigthening of credit has made it [...]

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Home Loan Modification: How to Modify Your Mortgage

This is a home loan modification guide that I put together after my successful loan modification for my parents.  Although many banks may vary in their processes, they have to follow a general guideline set out by the federal government.  Here are the steps that you need to take in order to increase your chances [...]

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Understanding the Fico Credit Score Range

The standard FICO credit score ranges from 300-850 and is computed using a mathematical model invented by the Fair Isaac Corporation in 1956 as a vehicle to combat lending default and assess the risk of borrowers. All three credit bureaus (Transunion, Experian, Equifax) use a slightly different version of the FICO credit scoring system.  Regardless, the original FICO [...]

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