Depression-Era Housing Loans to Bolster Deflated Economy

inflation

High inflation. High interest rates. Sluggish housing market. These are terms I grew up with living in Michigan all my life.

I remember the recession of the early 1980’s when you couldn’t buy your way into a job. I remember 101/2 % interest rates in the early 1990’s when my husband and I were first time home buyers.

I remember FHA and MISH-DA loans that were government funded and lower in interest.

With banks already needing to tap into government resources that haven’t been used much since the 1930’s, we are seeing and going to see more New Deal measures revived and pressed into service.

The New Deal was Roosevelt’s emergency called into practice. FDR instituted programs to Throughout my 40+ years, however, I have never heard the terms I am hearing now. Terms we only hear in history books.

The FHA is considering the New Deal reform concept of government purchases mortgage loans from banks, lending institutions and mortgage companies. The loans would be owned by the government who would then offer them back to consumers at lower interest rates.

Banks are feeling the pinch from investments which have plummeting in value, as well as from foreclosed homes sold to people who can no longer afford their mortgage payments.

Mortgage companies cannot afford to offer the lower interest rates and remain in business. As the housing situation stands now, many lending companies are struggling with loans that are worth more than the value of the home or property.

Homeowners are faced with increasingly expensive housing and living costs and therefore are finding it difficult to make the mortgage payments.

The cost in terms of tax dollars would be somewhat expensive. for those who are already struggling with the depressed economy, added tax burden is not appealing. Some folks did not fall for the temptation to purchase a home in the higher range of mortgage, but chose to buy a home at the lesser loan amount.

They put up with some inconveniences of a less expensive home: the endless repairs, the constant in process remodeling job, etc. Many of those people do not want extra tax dollars levied to bail out those who chose the pricier homes but could not afford them.

Congress is considering this as an emergency measure. What will actually happen is still not completely clear.…

Consolidating Federal Student Loans

students loans

It is an unfortunate fact that few can afford college without taking out federal student loans, which can be costly and take years to repay. With increasing college tuition costs over the years, these federal student loans are growing in amount, and so it is important to consider consolidating your federal student loans after you graduate, and know how to handle your debt when you enter the workforce. There is much you can do to educate yourself.

The first step is to compare the differences between private loans and federal student loans. Federal student loans often come with more advantages, such as the fact that interest paid against federal student loans is tax deductible.

student loan consolidationAnother benefit is that federal student loans can be forgiven or put on hold should you end up working for the government, or going back to school to become a special education teacher. Yet another benefit is that payments can be deferred on a federal student loan if you decide to go back to school for further education.

Private loans do not offer as many benefits as federal student loans, although they can still be consolidated. Private student loans are the same as regular loans, requiring you to make your payments responsibly as you would any other debt. If you decide to consolidate your student loans, make sure you do not combine federal and private loans together. If you do so, you will lose out on the benefits of the federal student loans, such as deferment for further education. Make sure they are consolidated separately.

To find out if you are eligible for consolidating federal student loans, you must first no longer be enrolled in school, or if you have enrolled in less than half time in classes. You must still be actively paying off the loan, or still inside the grace period, and you must not be delinquent. Be sure to research on the Internet for more information before you consider federal student loan consolidation.

When you have what information you need, consider that consolidating your loans may help you pay them off quicker, not suffer from crippling interest, or find yourself burdened in decades of debt like so many others. Starting off in the real world is difficult, and making sure your federal student loans are properly handled is the best start you can make.…

Need Money Fast? Private Lending or Lending Clubs May Help

p2p lending

Do you find yourself in need of $100, $500 or similar small amounts? Have you found that even with good credit, you do not qualify for the traditional loan? Today’s economy has prompted people to find alternative ways to make and borrow money. When these two come together, it can be in the manner of a Private Lending Club.

Have you or someone you know recently come into a bit of cash. You need to determine how to maintain this cash, yet make more money off of it. When the banks are paying you less than one percent return on your money, private individuals are seeking alternate way to grow their money.

On the other hand, there are those individuals who have good to excellent credit, yet they find banks rejecting their applications for a loan. Even minimal loan request are being denied. So, what does a person in need of a few hundred dollars do?

The answer is private lenders or lending clubs. Over the last year, with the economy as it is, people are in need. Before, they could turn to a bank to borrow a few hundred dollars at good interest rates. Depending on their credit history, a loan would be granted and within a couple of hours, you had your check and were on your way.

Not any more. Today, even with a credit score in the six hundreds, most individuals with no collateral or a job are being turned down. The need for even $100 or $200 is being rejected and out the door, these people are going. Some are in desperate needs of money. Some for food or other reasons unimaginable before the Bush era.

There is hope for these individuals. With a credit history evaluation, private lenders can provide the money you need. This form of borrowing offers two advantages:

1) Lender Advantage – The lender is gaining interest on their money at a rate much higher than federally regulated institutions are now willing to provide. CD’s are being offered with gains only at 1.75% if that much and Savings accounts are gaining even less.

2) Borrower Advantage – With a reasonable credit score and the ability to explain why any negative scores show up, a borrower can get his money wired into his account within minutes. The lender simply okays the loan at the interest rate shown and your money is released to you.

There are only a few reputable clubs operating presently.…