Loans and Finance

Archive for the ‘Loan Calculators’ Category

RealEstate-Calc (http://realestate-calc.com) and REIcalc (http://reicalc.com) are new websites specifically geared to advanced online real estate and mortgage calculation tools. These two websites, designed by Analytical Finances Inc, are intended to aid the small to intermediate investor in numerically understanding the financial implications of owning real estate. Most online calculation tools provide limited utility and are merely marketing strategies employed by mortgage companies. With the current mortgage crisis, the general public could benefit greatly from improved tools and education on the subject of property ownership and mortgage financing.

Everyone should be reassessing their real estate holdings at least once annually. Homeowners and investors should be 1) performing a five year forecast (at the very minimum) of their property holdings and 2) should be reviewing their mortgage costs for possible refinancing. Here are two obvious reasons: 1) most people have the majority of their net wealth allocated to their personal residence, and 2) real estate is truly a fascinating mechanism for wealth accumulation.

Determining to refinance your mortgage may require a more sophisticated approach than most mortgage calculators provide. Most online mortgage calculation tools lack the sophistication necessary to be of much use and are so seriously lacking in their complexity that they are nearly financially ineffectual.

Determining the economic benefits of refinancing depends on many factors, i.e. 1) what is the rate on your existing loan, 2) what is the current rate at which you can refinance, 3) what will it cost you to refinance, 4) how long do you expect to hold the property hence hold the loan, and 5) what is the time value of money. RealEstate-Calc and REIcalc can help guild you through a step by step approach in the application of these variables.

When creating any financial calculator or model there is a trade off between complexity and simplicity versus effectual and ineffectual and striking the right balance is the key to being a good analyst. “Mathematical modeling”, “manipulation of numeric data” and “displaying numeric results” are all part of an art form. To think otherwise would produce less than superior results.

There are more types of calculators than just mortgage calculators. There are real estate calculators that can assist you in determining the cost of buying, selling and holding real estate. They can help you determine the tax consequences of selling a single family or multifamily property which is either investment property or primary residential property. Perform a 5, 10, 15 or 25 year forecast of rental property, multifamily property or primary residential property.

There are business plan calculators. These types of calculators are useful for those interested in starting a small business. No business plan can be complete without a financial forecast and numeric framework. Many people considering starting a small business prefer to overlook the utility of a business plan; however those that require funding through more conventional sources often are required to have some type of minimum financial plan in hand.

Try the mortgage calculators (http://www.realestate-calc.com/Mortgage-Calculators.asp).

Perform a 5 year forecast:

rental property (http://reicalc.com/reim/models/forecast5-notyetAcquired-rental.cfm)

primary residential property (http://reicalc.com/reim/models/forecast5-notyetAcquired-primary.cfm)

multifamily property (http://reicalc.com/reim/models/forecast5-notyetAcquired-both.cfm)

Estimate the tax consequences of a sale:

rental property (http://reicalc.com/reim/models/sale-rental.cfm)

primary residential property (http://reicalc.com/reim/models/sale-primary.cfm)

multifamily property (http://reicalc.com/reim/models/sale-both.cfm)

Please note that the financial tools on RealEstate-Calc.com and REIcalc.com are not intended to be a substitution for seeking professional legal, professional tax, and professional financial advice. These financial tools should not be used by anyone to make material financial decisions and should solely be used for informational purposes only. Users should develop their own financial tools for the purpose of forming their own conclusions and are encouraged to seek professional advisement from all of the following: 1) a lawyer, 2) a tax specialist and 3) a financial planner.

Popularity: 6% [?]

Loan servicing software allows the mortgage banking company to increase flexibility with multiple options and detailed information. This type of package will integrate with most systems. Existing integration might include general ledger software, core processing and origination as well as documentation software. Loan servicing software will include multi-currency capabilities and the latest in data sharing technology. It will provide date import and export technology and the ability to create custom reports.

This technology will enable the mortgage banking, financial institution or insurance company to automate more services and keep tight management on any problems. A loan servicing software package will help the institution to keep in front of increased competition by staying abreast of new technology that will provide access and ability to better service the customer.

Viewing customer account information and billing information online will allow greater flexibility in addressing customer issues and provide better customer service overall. Customizable customer reports included will give the customer the best and quickest information possible and greatly improve customer relations. God calls His people to serve. With today’s technology this can be in the form of computer programs.

This type of package will handle multiple types of financing. Loan servicing software will automatically figure interest accruals on fixed and variable rates as well as more complex financing. Efficient operations will also include customer statements, payment processing, and customer notification and collection reports. They make inquiries simple and provide complete financial history, payoff calculations and late charge assessments. Customized reports are possible to create as well as reports already created in the system, to track multiple facets concerning specific information. A loan servicing software package includes excellent screen presentation and extensive help menus.

This technology interfaces with many software programs used by mortgage banking, financial institutions, and insurance companies as well as other loan origination organizations. A loan servicing software package will record new loan disbursements, provide tracking and record any notes or comments as needed on loan information. Loan servicing software provides links to notes or comments back to the origination, property or customer information. Audit history of changes in the system is easily accessed and recorded. A report writer will allow records to be sorted in various ways and scheduling of reports. A company will provide the additional benefit towards the need to scan documents or images.

Popularity: 10% [?]

Cheapest personal loan rates can be found if the borrower has some type of large item collateral to pledge as security on the personal loan allowing the lender to take a lesser risk and offer a lower interest rate. Borrowers that are seeking this should have a good credit history. If the borrower is not aware of his/ her own credit reporting score, then they should obtain copies of their credit report from all three nationally recognized credit reporting agencies: Equifax, Experian, and TransUnion.

If the borrower is seeking the lowest interest percentages, they should review the credit report for inaccuracies, as inaccuracies result in over 25% of lowered credit scores. Once a thorough review of a credit report has been completed and the borrower still does not qualify for the cheapest personal loan rates, they should design a plan to raise the credit score. The fastest and most effective way to raise a credit score in order to receive the cheapest personal loan rate is to pay down all balances on credit cards to at least 20% of their limits.

This can raise a credit reporting score up to 30 points in as little as 30 days. Borrowers should consider this option before applying for a variety of personal loans. Each time an application is made in an attempt to receive the cheapest personal loan rate, the borrower’s credit score is decreased by one point. There are no points taken off the borrower’s credit report if they receive it themselves and give the lenders the accurate credit reporting score verbally. If the borrower lies to a lender about the score, then they should not be surprised at the closing of the loan that the cheapest personal loan rates will not be offered to them.

It is important to note that some borrowers will be requesting the lowest interest percentages in order to pay down their credit card debt. One option is to borrow money from a family member or friend until the cheapest personal loan rate is approved and the funds dispersed, then the borrower can pay back the family and friends, reduce their credit card balances with the remaining funds, and begin their predetermined repayment schedule that includes the lowest interest. Receiving the cheapest personal loan rate should be a high priority for a borrower. Planning and saving money wherever possible is a wise move.

Popularity: 5% [?]