Blog

Five Reasons Why Debit Cards Are Better Than Credit Cards

It’s 2 p.m. Your morning evaporated in a flurry of phone calls and interruptions. You worked through lunch on plastic coffee to get an urgent job finished. Now you breathe a sigh of relief, grab another coffee, and reflect on your life as it is at this moment.

First lets get the banks loaning money again to all those people that couldn’t afford mortgage brokers to pay it back before the crisis hit then we’ll deal with the hyperinflation by raising interest rates through the roof causing even more people with ARM’s to default on their loans because their payments have gone up again. Yeah, that sounds like the solution.

If this all comes to pass, we in America had better figure out how we will cope with a sinking standard of living. If things continue on course, many will be out in the streets with no health care, no housing, no jobs, and no hope. Therefore, it would seem prudent to look ahead and see what can be done to provide our people with the basics during this potential coming adjustment to our lifestyles.

One of the biggest issues with this subject is that the lending community does very little to advertise itself as ethical. Lenders seem to think that the way they differentiate themselves is by offering the “lowest” rates. Well guess what…there’s no such thing. If we were to ask 5 people with the exact same qualifications to go find the lowest rate they can today, we are guaranteed to get 5 different answers. We consumers don’t need the lowest rate; we need experts with the highest ethical standards.

Fast forward 5 years. Guess what happens now. The adjustable rate resets. That means that the interest rate is going up to the current market rate. Well now, isn’t it interesting that the new Federal Reserve Chairman Ben Benanke has increased Fed Funds rates to over 5% from 1%. mortgage brokers vancouver bc rates have increase as well. The new principle and interest payment these borrowers are now faced with is going to go up over $1,000 a month. Yikes, they could barely afford the low interest only payments.

To think of you as a suitable candidate most lenders will want to see that you have been with the same employer for a few years or in the same industry at least. How often do you change your place of residence also comes into mind as well as your credit history. Of course how attractive you are as an employee also plays some part here, things such as your qualifications and the strength of the industry you are in.

If you have bad credit or questionable financial history, many banks may not grant you a reverse mortgage – but don’t let that discourage you. Some banks will make an exception so if you get denied the first few times but really feel you an pay this reverse mortage back, try another bank. Eventually you will find someone who can help you out, albeit on their strict conditions which is better than nothing.