Good Investment Advice: Only For The Rich?

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If you think good investment advice is only for the rich, you’re not alone. Nearly two-thirds (65 percent) of investing Americans believe that those with more money are able to get better financial advice than those with less money. Further, more than a quarter (26 percent) state that it takes at least $100,000 to get top-quality financial advice.

This is according to a new survey by the Retirement Corporation of America, which also finds that more than half (56 percent) of investors believe that financial advisors lose credibility when they accept fees or commissions.

Given the above perceptions, it is not surprising that 53 percent rely on themselves or turn to family and friends when it is time to make investment decisions rather than seek professional advice. However, changing investment funds is easer said than done for investors. The survey finds that nearly a third (31 percent) are willing to wait from one to five years before they move their money from a poorly performing option to a better one. The factor that makes it most difficult for investors when contemplating change is the scarcity of time to conduct adequate research, as cited by a third of respondents. This is followed by 20 percent who state that they are confused by all the available options and 16 percent who are afraid of making the wrong decisions.

The Retirement Corporation of America conducted this survey to better understand why consumers stay invested in poor-performing mutual funds. Their newly launched investment opportunity-Money Masters Investment Portfolio-is the first to offer unbiased advice and access to top-performing investment funds for every American.

Taking The Guesswork Out

The good news for confused American investors is the new registered investment advisory account (the “R” Account), offered through the Retirement Corporation of America, with no minimum account balance, commissions, transaction fees or exit penalties. It allows investors to access a fully managed Money Masters Investment Portfolio containing 15 of the world’s top-performing mutual fund managers-the “Money Masters.” The Money Masters are the top 10 stock fund and top five bond fund managers chosen from more than 8,000 fund managers who meet very strict selection criteria.

How It Works

When an investor opens an “R” Account, Retirement Corporation of America advisors determine the individual’s objectives and risk tolerance. Based on that profile, a Money Masters Investment Portfolio is created to best suit the individual investor’s needs.

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What is A VA Home Mortgage Loan?

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There are different types of home mortgage and each of them has an advantage and disadvantage. What may be an advantage to the others may be a disadvantage to you, which is why it is very important that you know which home mortgage is best for you. It will be beneficial if you take time on searching for the right home mortgage, the home mortgage that fits best for you in terms of your capacity to pay.

One type of home mortgage loan that you can consider would be the VA loan; this is the type of loan offered by the U.S Department of Veterans Affair. However, not all are given this type of loan. You need to go through a process to qualify. This kind of home mortgage loan is given to those American veterans or to wives of a veteran. This is actually a long term type of loan. The U.S Department made this to give the veterans a chance to have a house of their own.

If you get a VA home mortgage loan is that you are not required to give down payment. We all know that one of the requirements to get a home loan would be the down payment. And this part is what makes other applicants back out because the down payment would usually be 20% of the total amount. And 20% is actually a big amount and not all people can give that amount. And this is definitely true especially to the veterans and they are one of the families who deserve to have a home of their own.

So if you plan to apply for a VA home loan, the first thing that you should do would be to choose which type of program you wish to apply for. And you need to choose which one you think would fit you, of all the people it has to be you who would choose because no one else knows your needs and wants but you.

But no matter what you choose, you will surely be assured that you will get the most advantage with VA home loan. The first advantage would be the no down payment policy. When we say no down payment policy, you will not pay anything to acquire the home loan. You can directly have your home and proceed with the monthly amortization.

Another advantage is that this type pf loan gives out a lower rate than all the other home loan programs. This is actually one of the problems that are homeowners face, the interest. It is getting too high that you are likely paying twice or even thrice the real price. Yet, there is nothing you could do because you are in a loan.

Another thing, the VA home loan doesn’t include a compulsory insurance. This only means that your monthly amortization will not be added with insurances. The insurances they add can actually make your amortization a lot bigger.

Interested with getting a professional real estate agent services? If you’re looking for houses for sale Clayton, you can check out Teresa Byrd‘s listings.

In the end, no matter which type of home loan you choose, may it be VA home loan or not, for as long as you are happy with your choice and you get the best out of everything then that are all that really matters. You just have to consider all options so that you will be contended in whatever loan you choose.



Down Payments and Mortgages

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It is so exciting to buy your first home, but it is more important to find the right down payments and mortgages option that meet your requirements. The down payment is essential since you will have to pay that amount up front to the seller and the rest payment will be paid through the mortgage. The more you will pay; the lower will be the interest rate and the monthly payment.

How much down payment is expected from the buyer?

The average down payment is the 20% of the total amount. But if you are unable to pay 20% down payment then the lender might ask you for private mortgage insurance. And that insurance will protect the lender if you default payment. Generally the insurance costs from 0.15% to 2.5% of the total loan amount.

Why should you choose 20% down payment? 

Always consider paying 20% down payment to take the advantage of some prevailing policy and also to avoid buying the insurance policy that also charges a huge amount. Here are the reasons why you should choose 20% down payment.

  • More possibility to get a housing loan with lower monthly interest and mortgage:

If you do not meet this demand then there is a possibility that most of the banks will not consider your case. In the current market, there are a fewer options of five percent, ten percent and zero down payment and the scope of getting that kind of loans is very less.

  • Will be easy to cope up with the changing rules of the Consumer Financial Protection Bureau:

According to the new rules of the Consumer Financial Protection Bureau, the home buyers need to meet a 43% debt-to- income ratio. That means all your debts including mortgage payments, car loans, property taxes, and student loan should not exceed 43% of your total monthly income. So, if you make 20% down payment for your home loan then you will have to pay lower mortgages and that can be covered within the 43% debt of your total income.

  • More down payment means lower mortgage: 

Why not choose a lower mortgage option to take a minimum monthly pressure. It is a simple logic, pay more in the beginning; you will have to pay less afterwards. A minimum monthly payment will put less pressure than a huge amount when you have to meet other needs of your life.

  • More down payments offer fewer interests:

Banks charges more interests on lower down payments. And in the long run, you will be ended up paying thousand dollars only for the interests of your home loan. But if you pay 20% down payment, you will get flexible and fewer interest rates. So, try to make the deal rational, and make 20 % down payment to get the lower interest rate.

  • No more insurance for the payment of your home loan:

If you pay 20% down payment then you will be in the safer side. But if are unable to pay that much then most of the lenders will ask you to buy a Private Mortgage Insurance that will also cost you a huge amount of money.

Always ask for a home loan when you are financially prepared to make 20% down payment. That will help you with lower interest rate and mortgage payments. Need more info? Consult with our friend, Dan Stanton – an expert mortgage broker in Raleigh.

What do banks offer in mortgage?

Banks offer different types of mortgage for home loans with specific benefits. If your monthly payment is more then you can go for a fifteen-year plan. That will help you to save thousands of dollars. Here are the other types of mortgage:

  • Fixed-rate Mortgage: In fixed rate mortgage, you will get the knowledge of all your interest rates and monthly payments and will have to pay a fixed interest rate till the end of the term.
  • Adjustable-rate Mortgage: The interest rate is fixed, but you can reduce it in future.
  • Jumbo Mortgage: Fixed interest rate and the term can exceed up to thirty years.
  • FHA mortgage: For this 3.5% mortgage is required. This is helpful those who have less credit.
  • Dreamaker Mortgage: Favorable options for those who want to make five percent down payment only.
  • Home Affordable Refinance Program: It is for those homeowners who want to refinance their home and here the interest rate is less.
  • Veteran affairs: Down payments and monthly mortgage insurance is not required for this mortgage.