With the 2001 rate cuts behind we are seeing a steady drop in rates to the 40 year low of 6.10% 30 year fixed. Many now know that this can mean significant savings in finance charges when buying a house, refinancing a home loan or acquiring a new car. The question is how to take advantage of the cuts.

We will go through the steps of getting reducing finance costs by shopping for lower rates for those with the following loan needs:

1. Homebuyers: Finding your best mortgage loan
2. Home equity loan or line of credit, best options
3. Credit Card Holders, when to lower your rates be refinancing
Debt Consolidation Loans (credit card bills etc.)
5. Auto loans

All of the tips and figures below come from Mortgage Loan Search's editors and research staff and may include of consumer report data.

1. HomeBuyers: Experts suggest locking in a fixed-rate loan at 7 percent or lower.

Looking at the current pattern of rates drops almost each month since May 2002, Those seeking to lock in a fixed rate loan are at a great advantage. The rates remains the same during the life of the loan.

Smart Homebuying Moves: Before requesting a lock in know what you can afford in a home loan. Write up a budget and stick to it. When you're satified with your figures try the Loanweb quick qoute form to begin locating the best deal. Thirty-year rates averaged 6.96 percent in August 2001, Now 6.10%

If your seeking to buy a home and plan to live in a house for only a couple of years you might want to consider a short-term ARM now that rates on such loans have fallen. Keep in mind that ARM's have a good chance of rising from current levels.

One-year ARMs averaged 5.99 percent on August 15, 2001 according to a national weekly survey compared to well under 5.0% today. Click here to find a good deal on ARM rates in your area.

2. Home equity loans: Home equity loan rates are affected by the prime rate. The prime rate changes the day after the Federal Reserve cuts rates. You'll notice rates begin to decline at that time.

Smart Home Equity Moves: Experts suggested early in the year that equity loan borrowers wait until the end of a rate cut streak to take full advantage of the lower rates. Trends indicate that rates cuts may be coming to a close.

Now that streak has passed and drops are steady the next couple of weeks may be a great time to lock in a low equity loan rate. If you can afford to borrow, wait a couple of weeks for banks to adjust their rates to reflect the latest Fed cut, then pounce! But remember, you'll find the lowest rates on the shortest-term loans (say, three to five years).

Equity loan rates averaged 8.95 percent 1n August 2001.
They are at 7.50% today.

Home equity lines of credit: Line of credit customers are enjoying a significant low in rate payments compared to last year. As the prime rate is cut so the equity line of credit, which is tied to the prime rate. The rate is not expected to get much lower then present.

After rate cuts borrowers should allow time for the rates to adjust and reflect the Fed's latest cut. That's the time to lock in low fixed-rate equity loans.

Equity line of credit rates averaged 6.96 percent in August 2001. To find the current rate Click here

3. Credit cards: Cardholders usually don't see the rate adjustment in their bills until 2-3 months after a rate cut. The latest rate cuts  showed results in the Spring of  2002.

Other credit card customers are more fortunate. Their variable cards are re-priced monthly. These customers will see their rates drop very quickly by the same amount the rates drop.

Still, with all the rate cuts last year and significant drops this year, some card customers have hit the minimum annual percentage rates allowed in their cardholder agreements. The interest rates on their cards won't drop any lower. Some variable rate cards come with minimum APRs or floors and some do not. Be sure to check your cardholder agreement.

Wise cardholder moves: Lowering your rate thereby lowering your future balances is the best move to make now. You can transfer a balance to a low, variable-rate credit card. The idea is to find a variable-rate card that's lower than the rates on the card your currently holding. then when the rates are cut again you'll see the adjustments in your statements in good time. To compare credit cards Click here for the lowest rates on the web.

4. Auto loans: Once you hear that rates have been cut or allowed to drop, anticipate a low in auto loans rates as well. Many Auto loan financers are connected to banks whose rate levels are also linked to the prime rate. These rates may or may not be competitive with auto manufacturer financing.

Wise auto shopper moves: When rates are drop dealers know that banks and credit unions will be offering competitive rates to draw consumers in. Dealers will likely offer equally or better financing and some attractive incentives. Dealer financing should be considered when shopping for a car. Competitive pricing and financing is often set to sell following a rate drop.

How can you take advantage of rates drops if you're still paying on a car loan. Consider refinancing.

Rates on 48-month new-car loans averaged 8.86 percent in August 2001. Rates on three-year used-car loans averaged 9.95 percent. Current auto loan rates: 

New 48 Mo. 6.58% 
Used 36 Mo. 7.14% 
New 36 Mo. 6.27% 
New 60 Mo. 6.62% 

LoanWeb.com for low interest rate shopping. Click on the Resource buttons for more information on lowering rates and financing options. LoanWeb.com Find The Lowest Rates On The Web.

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Editors
To refer to this article link to
http://www.lowratesfinancing.com/article12.html

For immediate release - July 22 2002
Article written by Mark Askew
President of Mortgage Loan Search at
http://www.mortgageloansearch.cc - A directory of lending networks featuring tools and resources for low rate loan comparison for equity, refinance and mortgage loans.

Bankruptcy Vs Debt Consolidation

If you're overwhelmed with large amounts of debt that you can't afford to pay, you've no doubt considered bankruptcy. Before you take that step, you may want to consider a debt management program. Let's take a look at the difference between the two.

Bankruptcy. There are many types of bankruptcy, but only two apply to individual consumers, rather than large corporations. The different types are referred to as "Chapters." They are both legal proceedings that require legal representation. They are both governed by federal law and are very complicated.

Chapter 7 bankruptcy, often called "straight bankruptcy," is the most common type. During this process, most of your debts are forgiven. This may seem easier than repayment, but bankruptcy can have devastating effects on your credit for up to 10 years. Once you have declared bankruptcy, you are unable to declare again.

Chapter 13 bankruptcy, on the other hand, is a structured repayment plan where your creditors receive some or all of the debt owed to them. You pay a central party who distributes the money equally to your creditors.

The major drawbacks of bankruptcy are that you can lose some of your assets and your credit will be very negatively affected. However, if your income is so low that you are simply unable to pay your debts, this can be a process that will be of some relief. After debt is restructured or forgiven, you will be able to afford your monthly expenses once again.

Debt Management. Debt management is basically a payment plan. You are in no danger of loss of assets in this case. A credit counselor will work with your creditors to help lower interest rates and finance charges on your debt.

You will send one check to your credit counseling service and they will forward payments to your creditors. Debt management may be noted on your credit report, but is not as devastating as bankruptcy.

Debt management is far less complicated and does not require legal representation in the way that bankruptcy does.

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About the author:

Michael Torrance is a financial consultant with First American Debt Consolidation and Loans, a company specializing in debt consolidation loan alternatives through consumer credit counseling.

Cash Out Refinancing

January 2003 saw the lowest rates in decades not to mention a continued surge in refinancing like no other decade. Current 30 year fixed rates remain well below 6.00%. With 15 year fixed rates below 5%. Consumers are seeing financial advantage that could save them thousands of dollars over the life of the home loan. What should you do?

A year to year comparison of average mortgage rates reveal the median rate for interest charge savings is 7% or under. These factors indicate that the long anticipated savings for home owners seeking refinancing has arrived. The rates should remain low through the fall/winter months, though fluctuating several basis points. This should prove ideal for home bound shoppers seeking to find the best bargains and low interest rates that will significantly reduce interest charges and possibly save thousands of dollars over the life of the loan. Among the more sought after loan programs at this time is what is called Cash-Out Refinancing.

Compare Lowest Cash Out Refinance Rates at
 LoanWeb.com

For more information on what consumers in the financial industry are doing go to Mortgage Loan Search

Author: Mark Askew
Editor for the Mortgage Loan Search Network, the MLS Rate Watch Program Newsletter and a host of e-business periodicals

-------------------------------
Editors
To refer to this article link to
http://www.bcpl.net/~ibcnet/cash-out-refinancing.html

For immediate release - July 2002
Article written by Mark Askew
President of Mortgage Loan Search at
http://www.mortgageloansearch.cc - A directory of lending networks featuring tools and resources for low rate loan comparison for equity, refinance and mortgage loans.

Surviving The Economy

The recent terrorist attack left Americans feeling very vulnerable to loss of life and precious possessions. Many questions have been asked as to whether the economy will fall apart or the great depression set in. The most important thing to remember is DON'T PANIC.

Although the World Trade Center played major roles in the distribution of goods and services worldwide, other major financial institutions remain intact and functioning. In addition the Federal Reserve has been poised for just this kind of disaster and is putting billions of dollars back into the economy. Banks will be granted funds to keep the flow of business, goods and services moving. Oil prices have been locked to prevent rising prices. The Feds are prepared to lower interest rates again when needed. So there is reason for optimism of economic recovery from Tuesdays grim reports. Still when disaster strikes what can you do to protect your family and assets?

1. Turn off gas and unneeded utilities
2. Avoid sweeping powdered glass.
3. Cover glass with tarp, plywood or any other protective material.
4. Take items off high shelf levels.
5. Bolt water heater to floor or low walls
6. Remove flammables from living area
7. Store clean drinking water as soon as possible
8. Velcro computers and televisions to tables and desk.
9. Tape drawers and cabinets closed
10. Keep plastic bags handy in case of evacuation
11. Keep absorbent materials handy in case of leaks