Category Archives: Finance
The FHA 203(k) mortgage offers you the chance to purchase and repair a home, without having to deplete your life savings. With this, you could buy a home and include all related costs for updates and repair work, or a full renovation, into a single loan that’s fixed for 30 years. That is if you qualify for it.
How Do You Qualify for an FHA 203(k) Loan?
To be eligible for the 203(k), you have to satisfy specific requirements:
- Be the occupant-owner of the home you’re planning on renovating.
- A maximum DTI or debt to income ratio of between 41% and 45%.
- A credit score about 620 at the least, subject to lender approval.
- A loan amount, which includes both your purchase and remodeling expenses, that’s lower than the maximum limit for loans in your area.
- A down payment (home deposit) or home equity (if you’re planning to refinance) of about 3.5% or higher.
All prospective FHA 203k loan borrowers also need to pay mortgage insurance upfront, regardless of the amount of equity in your home or your down payment amount, which could increase your monthly mortgage payment amount. You’d also need yearly mortgage insurance if your loan to value or LTV ratio is 78% or higher or if your down payment is lower than 20%. This insurance would cover your lender in case you default. You’d also need to pay extra fees such as a supplemental fee of 1.5% of your repair costs, plus other charges for a title policy update and additional appraisal following the completion of your project.
The main difference in qualifying for a standard FHA loan instead of an FHA 203k loan is that you should qualify according to your renovation costs, plus your purchase price. For instance, if you need to buy or refinance a property with a value of $150,000 and fund $25,000 in renovation costs, you have to qualify for a home loan worth $175,000 and make a down payment or have home equity of 3.5%.
Whether you are purchasing a home that needs extensive repairs or are just looking to update a bathroom or kitchen before moving into your new home, the FHA 203(k) loan program might just be what you need to fund whatever you need to do. With this in mind, consult with an experienced FHA approved lender to determine if you’re qualified for the 203(k) mortgage.
While it’s always better and preferable to use money that you have on hand for buying a home, you might want to consider withdrawing from your retirement account if this isn’t possible. However, take note that you can’t make up the funds you withdrew, plus there’s the opportunity cost to think about.
When Using Retirement Funds
Let’s say you have $10,000 in your 401k or IRA. Rather than use it for your down payment, it could potentially increase up to $54,000 in a span of 25 years (given a 7% annual return). If you need to withdraw from your retirement accounts, an ideal option is to withdraw from a Roth IRA (if you have one) since it’s tax-free.
What if You Don’t a Roth IRA?
If you only have a traditional IRA, you could withdraw $10,000 from it without having to pay a 10% penalty. However, loan officers from mortgage companies in Fort Myers noted that the amount would also be added to your state and federal income taxes. They add that you would likewise be incurring the 10% penalty and adding it to your income taxes if you withdraw more than $10,000.
What if You Only Have 401k?
If you only have a 401k, you could either take a hardship distribution or loan (if your company allows it). If you take a loan, it’s considered non-taxable and you could simply pay it back. The last thing you should consider is to take a distribution according to the hardship rules of the Internal Revenue Service (IRS). This is taxable and you might have to take a loan first prior to the hardship distribution. You would also incur the 10% penalty if you were younger than 59 years and six months old.
Saving enough money for an investment or bank account is a preferable way to pay for your down payment instead of withdrawing from your retirement account. If taking a distribution is the only way, you should first consider taking from your Roth IRA. If not applicable, your traditional IRA or 401k.
While death is inevitable for human beings, many are still hesitant to face their mortality so they put off planning for their end of life care. However, planning your end of life options and including them in your advance healthcare directives early could improve your quality of life and alleviate your family’s responsibilities when the time comes.
Before Your Advance Healthcare Directives
Get information on every life-sustaining treatment type relevant to your condition, so that you could decide on the treatment type you don’t care for and the ones you could consider. You should also speak with your loved ones and close friends regarding your end of life preferences and wishes.
Planning Your Advance Healthcare Directives
You won’t need an attorney to plan your directives, but Lindquist Mortuaries and Cemeteries says that you have to make sure that you're complying with state laws regarding your funeral planning in Roy. Ensure that your plans reflect your end of life decisions. In most states, you could include distinct requests like opting for a burial or cremation and organ donations.
Read the instructions carefully to make sure that you’ve included all relevant details. Have an extra eye proofread your documents to ensure that you’ve completed them as accurately as possible. In addition, have your documents witnessed properly. Make sure that your loved ones and doctors know your requests, so they could prepare for proper arrangements and referrals.
End of life decisions is vital not only for seniors. Aside from ensuring that your healthcare wishes would be carried out, it likewise ensures that you relieve your loved ones from making life or death decisions on your behalf. Talking to your doctors and loved ones are important so that they could better understand the decisions you made.
A website’s contact page can make or break sales conversions. In fact, a contact page establishes a solid line of communication between the company and the customer. Visitors will usually check the page if they want to get in touch with people who could give them more information about a product or a service. Thus, it’s important to let this page stand out similar to a home page. Designers should take note of these actions when creating an effective contact page.
Give it a Good Design
Many companies that offer web design services say that a visually appealing contact page can compel a visitor to fill out the contact form. So, when designing this page, keep it simple. It should reach out and connect with the reader without becoming too overwhelming.
Make it Easy to Find
Your visitor shouldn’t have to navigate the website to get to the contact page. Make the page easy to find instead: put convenient links at the top and bottom of the every web page to help your visitor along. Putting a contact page link on a sticky navigation bar is also helpful as visitors have every chance to make contact if necessary.
Add a Call-to-Action
It’s not enough to have a contact page that merely contains a form. Persuade your visitors to do other things using compelling copy. You can also add a call-to-action button to give your visitors a nudge to get in touch with you. These will help make the website more memorable to visitors.
Define a Clear Goal for the Page
Have a clear goal in mind when designing your contact page. The page should let visitors know if they’ll be using the page to request for information, purchase a product or service, or to just say hi. Make it clear why visitors should contact you.
A compelling contact page is possible when you perform these actions. A great contact page not only offers improved user experience but also increases traffic and leads.
The day finally comes. No more meetings. No more deadlines. And your email’s out-of-office reply is now permanent. Retirement makes aging worth it. But are you fully prepared to make it the best years of your life?
If you planned your retirement right, you’d have more than enough savings to live comfortably. You’re also likely to have sufficient funds to go on adventurous trips across the country or in exotic places around the world. Also, you should have adequate savings for healthcare. With old age comes medical issues, no matter how well you look after your health.
If you somehow missed one aspect of retirement financial planning, there are ways to get cash flow without going back to work.
You can get income from your home in two ways: one, rent a room to tourists, and two, look into reverse mortgage solutions.
A New Income Stream
Airbnb, Flipkey, Tripping.com, and other room-rental services are offering new financial opportunities to homeowners. You could also meet interesting new people from different states or countries. You not only make more money, but also forge new relationships. You may even consider traveling to your former guests’ homes and discover what their countries have to offer.
But if you prefer to earn income without turning your spare bedroom into a mini hotel room, you can look into reverse mortgage. It’s a type of home loan that allows you to cash in on the equity of your property. You can use the cash to fund for emergency expenses or make further improvements to your home, ensuring a truly enjoyable retirement life.
The beauty of a reverse mortgage is that you don’t need to make monthly payments. You pay the loan when you move to another property, sell the home, or pass away.
Retirement is a good thing. But you need to make sure you’re financially prepared for this stage in your life.
Forbes has just awarded Utah as the best state for business in 2016. The popular business publication considered at least 40 different factors to come up with the list, so you know the results are not according to gut feel.
What kind of business should you open in Utah? One of the easiest is a sole proprietorship, a business structure where you are the legal entity. It doesn’t require as much capital as partnerships and corporations and takes significantly less time to file and open.
If you want to operate a single proprietorship in the state, remember the following:
1. Trade Name
As a single proprietor, you can register your name, although many businesses create a trade name, which is helpful in case you decide to transfer or sell the enterprise later. To know if another business owns your desired name, you can search it in this database.
2. Business Registration
Registering your business is quick in the state since it already offers a one-stop shop online. In this process, you can already sign up for State Tax and Labor Commissions, Department of Commerce, Environmental Quality, and Workforce Services. After the registration, you will receive unique membership numbers and the documents needed to register in your municipality.
3. Business Training Courses
Although sole proprietorships provide you with full control of the business, they also leave little room for mistakes. To make sure your efforts count toward growth and profit, sign up for business training courses in SLC with the help of Entrepreneursimplified.com. Many run for a few hours to few days, so they don’t take much of your time.
4. Business Liability Insurance
One of the biggest issues with sole proprietorships is the lack of personal asset protection against creditors. Simply put, if you owe a creditor and your business cannot cover the entire debt, he or she has the option to run after your home and other personal properties. You can safeguard what’s yours by investing in insurance.
Opening your own business can be intimidating, but with all the help Utah provides you, you should feel encouraged to pursue your dream.
Refinancing your current mortgage is an excellent strategy to lower your monthly repayments. How does it work? In essence, it replaces your current loan with a new one and reset the clock. In most cases, the new mortgage comes with lower interest, lower interest and a shorter term, or a cash-out option. Considering that most deals these days have low rates, a refi has never been more tempting.
However, everybody in Maryland knows that there’s no template that makes a successful mortgage for all. A refinance in Towson, North Laurel, or Ilchester would only work for you if you analyze the deal, along with your situation. To do that, follow these rules:
Make Sure Interest Rate Drops at Least 2%
The beauty of a refi lies in its interest savings. If the difference between your current rate and the new one is less than 2%, if wouldn’t offer significant value — especially when the loan amount is small.
Unless it’s a no-cost refinance, you would pay certain fees at closing. Whether or not you see yourself changing residences down the road, you have to recoup your out-of-pocket expenses quickly. Your breakeven period should only take a few months. Due to life’s uncertainties, your refinance may even cause you to lose money.
But then again, the 2% lower rate rule doesn’t always apply. If you need a short term to recoup your closing costs — let’s say 13 months — then you can forget about the substantial interest rate difference.
Think of How Long You Intend to Live There
No savvy borrower would refinance and then sell the property before hitting the breakeven period. Make sure you see yourself living in your home for a considerable number of years. Even if you do, it doesn’t mean you should agree for a long breakeven period. Again, life is full of uncertainties. A single event could suddenly change your long-term plans.
If you have to give up your home before your breakeven period is over, you would end up spending more money with the refi.
Don’t Forget about the Term
Other than snagging low-interest rates, shortening your loan’s term may save you precious dollars throughout your mortgage’s life. Of course, a 15-year term would involve less interest than a 30-year term. In addition, you would build equity on your property faster. If you look hard enough, you may lower your monthly repayment despite choosing a shorter term.
These rules make a great guide, but you shouldn’t put your fate on them solely. At the end of the day, doing your research and mull things over before refinancing. If you have to break any of these rules, do it if they don’t make sense for your situation.
Without proper preparation, drastic weather changes can have severe effects on your commercial building and cause you to incur substantial losses. Unfortunately, many property owners often fail to prepare their buildings for the hot summer and often suffer frequent breakdowns.
With a little bit of preparation, you can keep your property in good order and cut on maintenance costs. Here’s how you can do it:
Check the HVAC system
Inclement weather can wreak havoc on any building’s air conditioning unit. The changes from the snowy winters to blistering summers can take a toll on the heating and cooling unit. Therefore, you need to schedule regular inspections to keep the unit functioning correctly. The hot summer temperatures mean the unit will be under extreme usage for extended periods. A professional inspection allows you to repair any damage and keep the unit operating efficiently. It avoids frequent and costly breakdowns that would leave you tenants hot and uncomfortable.
Check the integrity of the roof
Summer can be rough on your roof as well since the scorching temperature increases the wear and tear of roofing materials. Contracting one of the reputable commercial roofing companies in Houston enables you to endure the hot summers with great ease. An expert service will offer excellent advice about roof maintenance and carry out any repair needs that arise. As such, you can arrest any problem long before it becomes extensive or needs costly repairs. Again, routine inspections help you to increase the longevity of your roof and save you quite a bundle of money.
Check the integrity of the windows and doors
The frigid temperatures during winter could cause some level of damage to the windows and doorways, leading to the creation of spaces and holes. During summer, the hot air could make its way into the building causing the cooling unit to work harder. That would result in skyrocketing heating and energy bills. Have a professional improve the building’s insulation capacity as well as repair such damages and keep your bills low and affordable.
Despite the summer promising sunshine and good times, you need to prepare your commercial building for the changes in weather. Such an approach enables you to keep the building in excellent condition and your running costs affordable.
Six Sigma and Lean methodologies have grown popular in recent years as various industries implement them to boost productivity in their own sectors. One of the industries greatly improved by such methodologies is the healthcare and research laboratories sector. In fact, innovation has been driving clinical laboratories to use Six Sigma and Lean in new ways.
In the Lab
In the past, Six Sigma and Lean were simply used to boost the workflow in laboratories, to improve the productivity of equipment, devices, and staff, to avoid errors and mistakes in lab processes, and to cut down on laboratory spending. Although many laboratories continue to do such things, a few have taken Six Sigma and Lean outside of the lab and brought it to hospitals.
Outside the Lab
Instead of laboratories, focus shifted towards physicians, nurses, patients, and hospitals. Laboratory teams left their labs to initiate more productive uses of clinical lab test data by healthcare providers. These projects aimed to develop care given to patients, to significantly cut down on the length of time hospital patients have to be confined, and to pioneer similar cutbacks in cost of care.
The Power of Six Sigma and Lean
Such projects using Six Sigma and Lean demonstrate the effectiveness of the methodologies. KPI Fire notes that you can bring the benefits of these methodologies to your business or even industry sector. You simply need to undergo certification, which is comparable to studying for a college degree.
What can your certification bring you? You will become an invaluable worker in your company. Six Sigma and Lean are perhaps infinitely useful methodologies that companies can benefit from. Your expertise on the methods and Six Sigma software will be needed to implement them in your company.
Your certification will also help you become the lead man or woman in your company’s Six Sigma initiatives. When you want to be a leader, rather than just a worker, a Six Sigma certification can certainly give you that.
What do you say? Six Sigma and Lean seem to continue to bring blessings to companies and industries that use them. You and your company can be one of those that receive blessings.