by Ruckertax | May 9, 2014 | Uncategorized |
TABLE OF CONTENTS What should I do if a friend or family member asks me to cosign a loan? How can I get the best deal on a home equity loan or an equity line of credit? What are the costs of obtaining a home equity line of credit? Should I obtain a home equity line of credit or a traditional second mortgage loan? How should I determine which of several loan alternatives is...
by Ruckertax | May 9, 2014 | Frequently Asked Questions |
TABLE OF CONTENTS Should I prepay my mortgage? When should I refinance my home? Should I borrow against my securities? What is a home equity line of credit? What are the costs of obtaining a home equity line of credit? What is an interest rate “lock-in”? What disclosures must a lender give you? What is a reverse mortgage? What loan interest is tax-deductible? What are the limitations on deductibility of loan interest? Is interest expense incurred for business purposes deductible? Is investment related interest expense deductible? Is interest on educational loans tax deductible? When can you stop paying private mortgage insurance? SHOULD I PREPAY MY MORTGAGE? As a general rule, if you are able to prepay your mortgage (and if there is no penalty for doing so) you should prepay as much as you can every month. There are however, two exceptions to the general rule: You do not have an emergency fund of three to six months’ worth of expenses stashed away. Any extra money you have should be put towards the emergency fund. Once you’ve achieved this essential financial goal, then you can begin paying down your mortgage. You have a large amount of credit card debt. In such case, all of your extra funds should be used to pay down those debts. In addition, there are a few individuals for whom paying down a mortgage earlier might not be as beneficial financially, particularly if they achieve a better return by investing that money elsewhere. Whether an investor fits into this category depends on his or her marginal tax rate, mortgage interest rate, the return they can...
by Ruckertax | May 9, 2014 | Featured-on-home-page, Frequently Asked Questions |
TABLE OF CONTENTS How do automated teller machine (ATM) and other electronic transfer transactions work? What should I do if I find an error related to an electronic fund transfer or ATM transaction? What happens if my ATM card is lost or stolen? Will I be able to use my ATM card overseas? How will I know a pre-authorized credit (such as automatic payroll deposit) has been made? How do I stop a pre-authorized payment? How do I protect my ATM and debit cards against fraud? HOW DO AUTOMATED TELLER MACHINE (ATM) AND OTHER ELECTRONIC TRANSFER TRANSACTIONS WORK? There are various transactions that fall under the umbrella term “electronic funds transfer.” Automated Teller Machines (ATMs). You can bank electronically and get cash, make deposits, pay bills, or transfer funds from one account to another. ATM machines are used with a debit or EFT card and a code, which is often called a personal identification number or “PIN.” Point-of-Sale (POS) Transactions. Some EFT cards can be used when shopping to allow the transfer of funds from your account to the merchant’s. To pay for a purchase, you present an EFT card instead of a check or cash. Money is taken out of your account and put into the merchant’s account electronically. Preauthorized Transfers. This is a method of automatically depositing to or withdrawing funds from an individual’s account, when the account holder authorizes the bank or a third party (such as an employer) to do so. For example, you can authorize direct electronic deposit of wages, Social Security, or dividend payments to their accounts. Or, you can authorize financial institutions to make regular,...
by Ruckertax | May 9, 2014 | Frequently Asked Questions |
ABLE OF CONTENTS What banking fees do I need to look out for when shopping for an account? What are the different types of bank accounts available? What type of account should I open? How should I shop for a “best buy” bank account? How much protection is provided by federal deposit insurance? How can I negotiate checking account fees with my current bank? What is overdraft protection and should I have it? What is the Truth in Savings Act? WHAT BANKING FEES DO YOU NEED TO LOOK OUT FOR WHEN SHOPPING FOR A BANK ACCOUNT? Fortunately, banks are required to give you a list of fees for their accounts. Even with interest, the best account is usually the one with the lowest fees. Checking accounts are minefields for potential banking charges. Be sure you ask about monthly fees, fees for check processing, and ATM fees. A no-cost checking account may impose a charge if your balance drops below a minimum dollar amount. Check printing charges have sky-rocketed in recent years to as much as $24 at some banks. You can have your checks printed for much less by an outside financial printer. It rarely makes sense anymore to park money in an old-fashioned “passbook” savings account. Monthly account fees may overshadow the small amount of interest you will earn. Put it in your checking account instead if you can refrain from spending it. If it’s a big enough sum, you might want to put it in a money market account. You will earn more interest than in a savings account, but make sure you don’t get hit with...
by Ruckertax | May 9, 2014 | Uncategorized |
Debt should be incurred with caution. Yet there are ways to take advantage of your available credit to enjoy a purchase, make an investment, or take care of an emergency. Here is a guide to finding out which form of borrowing will best suit your needs as well as some pointers on finding the lowest-cost loan available. TABLE OF CONTENTS Types Of Loans How To Shop For A Loan Comparing Loans Home Equity Loans TYPES OF LOANS Let’s take a look at the various ways you can borrow money-and the negative and positive aspects of each. HOME EQUITY LOANS By using the equity in your home, you may qualify for a sizable amount of credit, available for use when and how you please at an interest rate that is relatively low. Furthermore, under the tax law-depending on your specific situation-you may be allowed to deduct the interest because the debt is secured by your home. Related Guide: Please see the Financial Guide: HOME EQUITY LOANS: How To Shop For The One That’s Best For You. HOME EQUITY LINES OF CREDIT A home equity line of credit is a form of revolving credit in which your home serves as collateral. Because the home is likely to be a consumer’s largest asset, many homeowners use their credit lines only for major items such as education, home improvements, or medical bills-not for day-to-day expenses. With a home equity line, you will be approved for a specific amount of credit- your credit limit-that is the maximum amount you can borrow at any one time while you have the plan. Many lenders set the credit limit...
