by Jeremy Holter » Thu Jan 15, 2009 07:14 am
In a weak economy where credit is tight, much attention has been paid to various loan types — from mortgages and auto loans to credit cards — and whether cash-strapped consumers are having a difficult time obtaining and affording them.
Considerably less attention has been given to credit insurance, something a growing number of consumers might be considering buying but may not know much about. The state Department of Insurance is urging individuals to research their options before making any decisions.
Considerably less attention has been given to credit insurance, something a growing number of consumers might be considering buying but may not know much about. The state Department of Insurance is urging individuals to research their options before making any decisions.
Posted: Thu Jan 15, 2009 07:25 am Post Subject:
The worst part of a financial crisis is that it squeezes the availability of credit in the market and therefore reduces funds for the industries and individuals. Many of us are surviving under threat of being laid off or have already been laid off as the companies are shrinking in size. This again would increase the number of loan defaulter in the economy. Credit insurance, IMO, can help us in breaking this vicious cycle of vanishing funds since it would ensures the repayment of loan to the financier.
Posted: Thu Jan 15, 2009 07:32 am Post Subject:
I agree with you Jeremy that credit insurance can be the answer to this ongoing financial problem. If more number of people would have had the credit insurances at place, they wouldn't have ended up in this situation, but tell me one thing that do you really think that credit insurance worth their values? I mean often time the insurance that the lienholder tags along with the loan is over priced and insufficient to cater to the needs of the buyer. What are the aspects that the buyer need to keep in mind while selecting the right type of coverage?
Posted: Thu Jan 15, 2009 07:41 am Post Subject:
Hey anonymous, I think that are wishing in vain that people would be sensible to buy the coverage they need to protect themselves properly. I know of persons who would live and die in debt. They think they have the right to get loans but aren't responsible to pay back. These people mainly have contributed to our current financial dismay. They went out to get mortgage loans with their stinking credit with little or no intention to repay the loan they have taken. And the bank too went out helping these people in the greed of more profit. The outcome is in front of you :mad:
Posted: Sun Oct 07, 2012 11:57 am Post Subject: ddGEfwPBKqh
In an interest-only loan or the beoworrr only pays interest each month. This makes it cheaper than a conventional mortgage, in which part of each month's payment goes towards the principal and part goes towards interest. These loans have become popular because the monthly payments are lower, allowing beoworrrs to afford a larger home.However, these loans can be dangerous, especially in a down housing market. The interest rates are generally fixed for the first 1, 3 or 5 years. After that, they convert to a conventional loan, with a higher monthly payment. Most beoworrrs take on these loans because they assume they will sell the home before the interest rate increases. In a down market, they may not be able to sell. If they cannot afford the increased payment, they may have to default on the loan, and foreclose on the home. So, when the rate starts to adjust, you would need to refinance again. And, either get a fixed or another interest only adjustable. And, yes, I do believe you mean ARM. Although, if you have extra money every so often, you can pay down the principal in extra payments.
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