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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, I will discuss the various costs of buying a home, with hope that you can reanalyze and take a second look at your finances and see if you really can afford buying a new home.

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Fancy Car

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 constant costs and considerations in order to keep your car in good condition.

Buying a car isn’t as big of a financial commitment as buying a home.  However, it is still one of the bigger financial decisions you will have to make.  That is why it is important that to think thoroughly about the process of buying a car.

I’ve created a checklist for some things to consider when you are thinking about buying a car.

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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 learn from Warren Buffett, pay attention to the lessons he has expounded below.  This is a collection of some of the more important concepts I’ve gather from his materials (books, shareholder meetings, media appearances).  However, I will be the first to admit that I do not completely follow Warren Buffett’s teachings.  His style of investing requires the utmost patience, due diligence, and willpower and is the most fundamental of fundamental investing.

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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 harder to buy a home.  However, at the same time, real estate is as cheap as ever to own.  The US Federal Housing Finance Agency puts the February 2011 housing price index at 181.8, which puts it at the same level January 2004.

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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 of a home loan modification.

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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 system is still the most widely used credit scoring system—and also the most reputable.



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Annual Inflation Chart

What is Inflation and How Does it Work?

Inflation affects people from all walks of life–quite significantly that even your entire retirement fund can suffer if there is an unprecedented rise in inflation rate. Inflation shows how the value of money decreases over time. While it is often seen as economic, it can in fact be as real as the size of a hamburger that you eat for lunch. Read on to learn more about this very important concept.

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Why Do Recessions Happen?

We hear the word recession all the time?  But what is it and why do recessions happen?  The impact of an economic recession is utterly wide-ranging. Depending on its nature and extent, a recession’s effects can be huge or minimal, direct or indirect. In any case, a recession is something that everyone should care to know about.

But in order to care about it, you must know what a recession is and why it happens.  According to the National Bureau of Economic Research (NBER) in the US, a recession refers to a considerable decline in economic activities happening at a wide scale, which lingers for several months and is visible in macroeconomic data such as national output, employment, and industrial production, among others.  Although the word recession gets thrown around a lot for periods of economic uncertainty or inactivity, it is often used by economists and business leaders to mean (at least) two consecutive quarters of GDP decline.  But enough with the technicalities, here are some of the reasons why recessions happen in the economy:

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Real Income vs. Nominal Income: What’s the Difference?

You may not realize but even with increasing wages, you may still feel like you are unable to get by with your day-to-day expenses. This means that your real income may be on a downhill rather than uphill. Your purchasing power is diminished even when you are holding a greater amount of currency because of higher prices. Knowing the difference between real and nominal income is critical in investments. This article is aimed to draw the differences between real and nominal income.

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Advantages of Buying a House

In recent years the practice of home buying in our country, with all the accompanying grief and debt of subprime mortgages has given the whole “American dream” a bit of a bad name. In the past we may have been taught that buying and owning a home was an inalienable right, and a mighty good investment.

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