The Complete Guide for understanding Fast Refinance

Refinancing your mortgage from one lender/credit provider to another can be lengthy, costly and time consuming. The new and efficient way to refinance your mortgage is to use “Fast Refinance.”

What is Fast Refinance?

Fast Refinance is a unique refinance process whereby your new lender/credit provider uses a product called Title Insurance to:

>> Facilitate the refinancing of your loan in days, not weeks (faster same-day settlement)

>> Enable an “Unattended” refinance settlement (no settlement meeting or booking takes place)

>> Reduce settlement costs (all correspondence and funds sent electronically)

>> Streamline the mortgage loan process (requires minimal additional documentation)

What is Title Insurance?

Title Insurance provides protection to lenders/credit providers against known and unknown title defects on a security property. It offers additional risk cover to strengthen and enhance your legal interest in the mortgage and the security property.

Why Choose Fast Refinance?

You should refinancing your mortgage with the same extreme care you put into getting your original mortgage, and it is just as big a financial decision. So when you are thinking of refinancing, you should consider the following benefits of “Fast Refinance” and more importantly why wait for up to 6 weeks or more to take advantage of these benefits, such as:

No Fees – most lenders do not charge fees

Very quick Settlement – when all documents are received and certified you can have an approval in as little as one or two days

Savings – if refinancing at lower interest or extended term, it will save you money and even reduce your monthly repayment

Easy for you – as your new lender will contact your current lender and organise the new loan, you do not have to approach your old lender

Access to Funds – you may be able to access additional or surplus funds much quicker than when doing a standard refinance transaction

No Contact from your old Lender – process circumvents the old lenders “retention unit” from making contact to try and persuade you to stay with them

How Does Fast Refinance Work?

You will need to complete a new loan application with the new lender/credit provider and provide all requested documentation for your new loan, and the new lender/credit provider will:

>> Approve the loan application

>> Prepare all the Fast Refinance loan documents

>> Request you to sign and complete all the documents and state the “payout figure.”

>> Deposit into your old loan account sufficient money to reduce the loan balance to Nil

>> Pay you direct any surplus funds from the new loan

How Can a Finance Broker Help With Fast Refinance?

A professionally qualified finance broker is very experienced with arranging refinancing of client loans and he/she will help you in answering the following questions:

>> Am I eligible and how can I qualify for a “Fast Refinance” loan?

>> Can you help me to compare my current product features against the new product features before I decide to refinance my home loan?

>> Can you help me obtain formal approval to Fast Refinance my existing home loan and at the same time obtain pre-approval for the purchase of a new investment property?

>> With a Fast Refinance loan can I access the equity from my existing owner occupied property to assist me in the purchase of a new investment property?

>> Will I be better off refinancing my existing home loan and consolidating my debts?

>> What documents do I have to provide when refinancing or consolidating my debts?

>> Can you help me to calculate the value of my home equity?

>> Can you help to calculate my present loan-to-value ratio?

So, don’t forget to help of a finance broker. He/she will make you ready for fast refinance and ensure that you get cheaper rates and a better deal.

How to become a Successful First-Time Investor?

If you are one of the many first-home buyers who have been working hard over the ensuing years to pay down your mortgage as quick as you can, there is good news. With an increase in the value of your property, you now have access to a significant amount of equity sitting in your current home. This accessible equity can provide you with the perfect springboard to becoming a first-time investment property buyer.

So, if you are considering taking your first steps into the property investment market, you may find that you are:

>> Looking at the second property as “doubling your commitment” to servicing your ongoing debt, or

>> Unable to muster up enough courage to start the first move into an investment property market

Useful “Tips” for First-Time Investment Property Buyers

Don’t worry if you worried about your financial situation. If you are serious about being financially independent by the time you retire and you have been considering investing in property for the first-time, here are some useful tips to help you become successful in obtaining investment property loans:

Find a Suitable Property – Have a clear idea of the type of property you want to buy and its location

How much you can Borrow – You will need to assess the amount of debt you can take on. You can use a suitable “Borrowing Power Calculator” to help you determine the amount you can borrow

Budget – You will need to establish a personal budget, which involves adding up all your income as well as working out all of your expenses. You can use a “Budget Planner Calculator” to help you determine the amount you can borrow

Rental Income – You will need to make sure the rental income you receive from your investment property will cover the total costs of your investment property

Tax Deductions – There is a range of property investment tax deductions you can claim. So, it is important you seek tax accounting and legal advice from your tax accountant and solicitor Loan

Purchase Costs – Buying your investment property does come with a range of costs. Some of the typical costs include loan establishment fees, conveyancing costs, stamp duty, and Lenders Mortgage Insurance (LMI) premium (i.e. payable if the total amount of your borrowings is more than 80% of the total security value of your properties)

Investment Loans and Options – The type of loan you obtain should depend on your individual situation and should reflect your investment goals. There are also numerous home loan options with a range of features and benefits to choose from.

Loan Pre-Approval – Before you go looking for your first investment property, you should arrange to get your loan pre-approved. Because, a pre-approved investment loan will give you the peace of mind and surety when you are bidding at an auction.

I hope these tips will guide you in obtaining a better investment loan deal and make you a successful first-time investor. If you are overwhelmed with the amount of work that you will have to do for making investment in a property, it is best to seek help and guidance from a professionally qualified finance broker.

Having a specialist finance broker on your side will save you lots of time and heartache because he/she will negotiate on your behalf with numerous lenders/credit providers and secure your eligibility for a first-time investment property loan. So, don’t take tension of the loan process, employ a specialised finance broker and let him/her find the best investment property loan deal that suits your needs.

Car Insurance Florida – Reasons for Being Expensive

While people understand that hurricane problems are the culprit of high-premium home insurance, some still cannot see why car insurance also costs more than in other states.

According to statistics, Florida has high density traffic. Urban population and fast moving highways in and around the state are the main reasons that Florida also has high rate of accidents. In Florida, senior citizens often drive in lower speed than what’s actually regulated. If many cars move at 35mph in a lane where vehicles should move at 55mph, accidents are almost inevitable as well. The minimum liability requirement as regulated by Florida DMV includes $10,000 PIP (Personal Injury Protection) and $10,000 PDL (Property Damage Liability).

PIP (Personal Injury Protection)

Auto insurance Florida applies no-fault policy, meaning your insurer provides coverage whether or not you at fault in an accident. PIP coverage does not cover the driver, but also the passengers including your children and members of your household. Even when you borrow your friend’s car, PIP still applies as long as you are policyholder. As a result, the coverage sounds very generous, but you have to pay more than normal. Personal Injury Protection even covers your child in case he/she suffers injury while riding on school bus. It means the coverage is still applicable even when you are not the driver.

As a matter of fact, PIP can be used in any kind of accident which involves motor vehicle; you can be a pedestrian or bicyclist when the accident happens, but PIP still provides the coverage you want. As previously mentioned, the minimum amount to pay to get PIP is $10,000, and this rule applies to all owners of vehicles with four wheels or more in Florida.

PDL (Property Damage Liability)

Property Damage Liability provides protection for you and your family members in case other people’s properties are damaged in a crash or accident which involves your motor vehicle. Similar to PIP, the minimum amount is $10,000.

BIL (Bodily Injury Liability)

Car insurance Florida’s minimum liability requirement includes PDL and PIP, but you will also need BIL (Bodily Injury Liability) in Florida; this is not mandatory, but certainly an important one to purchase. The coverage will pay for any serious injury or even death caused by an accident that involves your motor vehicle. The coverage pays up to the limit of your policy. It even provides legal presentation in case you are sued for the accident, injury, or damage, which in most cases you will be.

What are the Different Types of Business Loan available?

A business loan provides financial aid to business of all sizes (i.e. small businesses, medium-sized businesses or start-up businesses). It is ideal for business owners who need funding to enhance or expand their business. When you need a loan for your business, you must adopt a strategic approach. Cautious planning is necessary for ensuring success in obtaining business loans.

Business Plan

When you are considering applying for a business loan, it is important for you to take enough time to create a convincing and detailed business plan. Your business plan should include information, which will assist your finance broker as well as the lender/credit provider in providing you with the right type of finance and advice. Here is a list of information you should include in your business plan:

>> Your business structure

>> The purpose and goals of your business

>> Your past and future plans for your business

>> The profit and loss projections and cash flow forecasts of your business

>> Your marketing strategy (i.e. the products or services your business provides)

It is also important to state in your business plan the specific purpose for which you want to use a business loan.

Decisions to Make

Once you have assessed your needs for a business loan, you should investigate which finance products suit your needs for a business loan as each loan has varying features for you to choose. To help with this process, here is a list of things to consider and which you can discuss with your finance broker:

>> The loan amount required

>> The loan term (i.e. the period in which the loan will need to be repaid)

>> Interest rate type and repayments (i.e. fixed or variable)

>> Loan fees, and

>> Loan security (i.e. the type of security offered by you)

Finance Products

There is a variety of business loans available to choose from. Here is a brief summary of common business loan products specifically designed by lenders/credit providers for business owners, which can assist your individual situation as a business owner:

Commercial Bill Facility

A commercial bill (also called a bank bill or bill of exchange) is a flexible credit facility that can give your business a short-term or long-term injection of cash. The finance provided by the commercial bill can help your business in the event that you may need to solve an unexpected or urgent problem, and you do not have the required cash flow. You agree to pay back the face value of the commercial bill plus interest to the lender/credit provider on a specific maturity date.

Overdraft Facility

The purpose of establishing an overdraft facility is to provide working capital for your business in the short-term, before receiving income. An overdraft facility should not be used for capital purchase or long-term financing needs. The overdraft is a normal trading account facility for your business, whereby the lender/credit provider permits you to use or withdraw more than you have in the trading account. But, only up to an agreed amount and any negative balances typically need to be repaid within a month.

Line of Credit

A line of credit (also called an equity loan) can provide access to funds by allowing you to draw an account balance up to an approved limit. The loans are designed as a long-term debt facility and are usually secured by a registered mortgage over a property.

Fully Drawn Advance

This is a term loan with a scheduled principal and interest repayment program. The loan provides access to funds upfront, which can be used for funding long-term investments that will expand the capacity of your business, such as purchasing a new business or even purchasing equipment. Fully drawn advance loans are usually secured by a registered mortgage over a residential or commercial property or a business asset.

Short-Term Loan

A short-term loan can provide short-term funding needs for your business. You can take out a short-term loan if you want to take advantage of a very quick financial opportunity or to help you get out of a financial cash flow crisis. The loan offers a fixed sum advance and requires a periodical interest charge to be paid by you. Short-term loans typically require a security to be provided.

Business Equipment Finance

If you decide to expand your business operations and take benefits of potential tax advantages, you should consider taking out business equipment finance, as the finance arrangement allows you to buy, lease or hire a new vehicle or specialised equipment (e.g. cars, trucks, forklifts, printing, computing, medical and office equipment as well as plant equipment and machinery). Typical finance arrangements to consider for business equipment finance are asset lease, commercial hire purchase, chattel mortgage or equipment rental.

Truly, there are several finance products available in the market to help business owners. When you seek out finance for your business, don’t be in a hurry. Consider all the alternatives in detail and then choose the one that is right for you and your business.