Student Loan Consolidation – How does it Work? Student loans are
a great source of financial aid for students who need help
paying for their education. Unfortunately, students often leave
college with burdensome debt. In addition, they often have
multiple loans from different lenders, meaning they are writing
more than one loan repayment check each month. The solution to
this problem is loan consolidation.

What is loan consolidation? Loan consolidation means bundling
all your student loans into a single loan with one lender and
one repayment plan. You can think of loan consolidation as akin
to refinancing a home mortgage. When you consolidate your
student loans, the balances of your existing student loans are
paid off, with the total balance rolling over into one
consolidated loan. The end result is that you have only one
student loan to pay on.

Both students and their parents can consolidate loans.

Should I consolidate my loans? Loan consolidation offers many
benefits:

-Locks in a fixed, usually lower, interest rate for the term of
your loan, potentially saving you thousands of dollars
(depending on the interest rates of your original loans) -Lowers
your monthly payment -Combines your student loan payments into
one monthly bill

In addition, consolidated loans have flexible repayment options
and no fees, charges, or prepayment penalties. There are also no
credit checks or co-signers required.

You should consider consolidating your loans if the
consolidation loan would have a lower interest rate than your
current loans, particularly if you are having trouble making you
monthly payments. However, if you are close to paying off your
existing loans, consolidation may not be worth it.

How will the interest rate for the consolidated loan be? The
interest rate for your consolidated loan is calculated by
averaging the interest rate of all the loans being consolidated
and then rounding up to the next one-eighth of one percent. The
maximum interest rate is 8.25 percent.

To figure your interest rate, visit loanconsolidation.ed.gov for
an online calculator that will do the math for you.

How much can I save? How much you save by consolidating loans
depends on what interest rate you get and whether you choose to
extend your repayment plan. According to Sallie Mae, the leading
provider of student loans in the United States, consolidating
student loans can reduce monthly payments by up to 54 percent.
However, the only way to reduce your payment this much is to
extend your repayment plan. You typically have 10 years to repay
student loans, but, depending on the amount you’re
consolidating, you can extend your repayment plan all the way up
to 30 years. Remember that if you choose to extend your
repayment term, it will take longer to pay off your overall debt
and you’ll pay more in interest. There are no preypayment
penalties, so you can always choose to pay off the loan early.

Am I eligible to consolidate my loans? In order to consolidate
your loans, you must meet the following criteria:

- You are in your six-month grace period following graduation or
you have started repaying your loans -You have eligible loans
totaling over $7,500 -You have more than one lender -You have
not already consolidated your student loans, or since
consolidation you have gone back to school and acquired new
student loans

The following types of loans can be consolidated:

-Direct Subsidized and Unsubsidized Loans -Federal Subsidized
and Unsubsidized Federal Stafford Loans -Direct PLUS Loans and
Federal PLUS Loans -Direct Consolidation Loans and Federal
Consolidation Loans -Guaranteed Student Loans -Federal Insured
Student Loans -Federal Supplemental Loans for Students
-Auxiliary Loans to Assist Students -Federal Perkins Loans
-National Direct Student Loans -National Defense Student Loans
-Health Education Assistance Loans -Health Professions Student
Loans -Loans for Disadvantaged Students -Nursing Student Loans

Where can I get a consolidation loan? You can consolidate your
loans through any bank or credit union that participates in the
Federal Family Education Loan Program, or directly from the U.S.
Department of Education. The loan terms and conditions are
generally the same, regardless of where you consolidate. You may
want to check first with the lenders that hold your current
loans.

If all your loans are with one lender, you must consolidate with
that lender.

If you decide to consolidate your student loans, remember that
you can only do so once unless you go back to school and take
out more loans. Therefore, you will want to make sure you get
the best deal the first time. The interest rate will be the same
from all lenders, but some lenders may offer future rate
discounts for prompt payment and a discount for having monthly
payments directly debited from your account.

Can my spouse and I consolidate our loans together? You can
consolidate your loans together, but it is not a good idea for a
couple reasons:

-Both of you will always be responsible to repay the loan, even
if you later separate or divorce -If you need to defer payment
on the loan, both of you will have to meet the deferment criteria

When should I consolidate my loans? You can consolidate your
loans any time during your six-month grace period or after you
have started repaying your loans. If you consolidate during your
grace period, you may be able to get a lower interest rate.
However, since you will lose the rest of the grace period, it is
a good idea to wait until the fifth month of the grace period
before consolidating. The consolidation process usually takes
30-45 days.

This article is distributed by NextStudent. At NextStudent, we
believe that getting an education is the best investment you can
make, and we’re dedicated to helping you pursue your education
dreams by making college funding as easy as possible. We invite
you to learn more about how to get Student Loan Consolidation at
http://www.NextStudent.com .

Vanessa Mchooley
http://www.articlesbase.com/debt-consolidation-articles/student-loan-consolidation-how-does-it-work-829.html

In the mortgage industry, loans are issued to people according to their credit score, income and a few other financial factors.

The most influential piece of information that lenders need to determine what type of loan and at what rate they will give to a borrower is their credit score.

Without a good credit score, a consumer will either not be approved for a loan all together or will get a loan with much more unfavorable terms and interest rates.

Normally, borrowers are divided into three categories based on their credit score; there is the subprime group (those with the worst credit), the Alt-A group (those with medium level credit scores and the A-paper or prime group which consists of the borrowers with the best credit scores.

The mortgage industry has gained a lot of negative attention lately as we have seen more and more of the loans given to subprime borrowers go delinquent or even worse, end up on foreclosure.

Now, as if things couldn’t get any worse, the people in the mid-range group are also gaining attention for their inability to pay their mortgage payments each month.

So who’s fault is all of this?

The borrowers? The lenders who got people into loans that they really couldn’t afford?

Or the housing market itself?

Although we may never know the answer to these questions, it is important to try and correct this problem before it spread even more than it already has.

“The mortgage market has been roiled by a sharp increase in bad loans made to borrowers with weak credit. Now there are signs that the pain is spreading upward. At issue are mortgages made to people who fall in the gray area between ‘prime’ (borrowers considered the best credit risks) and ‘subprime’ (borrowers considered the greatest credit risks).”

“A record $400 billion of these midlevel loans — which are known in the industry as ‘Alt-A’ mortgages — were originated last year, up from $85 billion in 2003, according to Inside Mortgage Finance, a trade publication. Alt-A loans accounted for roughly 16% of mortgage originations last year and subprime loans an additional 24%.”

Obviously, these loans take up a big portion of the mortgage industry as a whole, so if a big portion of the loans go into default, we could be seeing a lot of trouble.

Also fueling this issue were many of these Alt-A loans were brand new to the industry and required little to no documentation of income or assets.

“The catch-all Alt-A category includes many of the innovative products that helped fuel the housing boom, such as mortgages that carry little, if any, documentation of income or assets, and so-called option adjustable-rate mortgages, which give borrowers multiple payment choices but can lead to a rising loan balance. Loans taken by investors buying homes they don’t plan to occupy themselves can also fall into the Alt-A category.”

It seems as though many of these mid-level borrowers got into homes they really couldn’t afford, and now as the market begins to slow, they are stuck against a wall. They can’t sell or refinance to get rid of any other debt, and their payments soon become too much for them.

It seems as if lenders will have to tighten their standards in the future, and borrowers will have to do everything they can to keep on track with their payments.

For greater information about mortgage refinancing or more related subjects about mortgage calculator or about home mortgage please review these links.

Groshan Fabiola
http://www.articlesbase.com/business-articles/midlevel-loans-also-becoming-more-delinquent-120181.html

Many economists are predicting interest rates to be cut further to zero over the next few months in an attempt by the Government and the Bank of England to get consumers spending again to kick start the economy.
 
With interest rates currently at 2% and likely to drop there is little incentive for consumers to save their money with the measure of inflation, the Consumer Price Index (CPI), showing inflation at 4.5%. If rates were to drop lower it’ll drag down savings rates, quite possibly below the inflation rate meaning consumers savings could actually be worth less as time goes on and lose money.
 
However with the country in recession (not officially announced but with five months negative growth a six month almost guaranteed. Recession defined as two equal two consecutive quarters of negative growth) consumers are also very concerned about job security and likely to continue to safe until the situation improves.
 
Savings were said to be around 10% of income as an average for the nation one year ago however in recent months this has actually turn into a negative. However the good news for mortgage owners is mortgage rates will certainly improve as MPs continue to put pressure on mortgage providers pass on any further rate cuts as they have been reported doing since the November rate cuts.
 
Although the number of mortgage products are still at an all time low and mortgage lenders have tightened their criteria for borrowers. Good deals are available for those who can afford a decent deposit. Your chances of obtaining a mortgage are greatly improved if you can provide a 25% deposit. It will also mean you can get a mortgage at a decent interest rate as the deposit will give you many more options than opposed to those who don’t have savings to offer.
 
Mortgage rates can be compared by using the services of a mortgage broker. Find one that will check the whole of the mortgage market to ensure you can compare all the options available to you. With the recent interest rate cuts you could save money on your current mortgage rate as not all providers have passed both rate cuts on in full.

Chris Borthwick
http://www.articlesbase.com/mortgage-articles/bank-interest-rates-could-drop-to-zero-675403.html

If you are in the mortgage business, the very first thing you
need before you can get anywhere, is an application.

I spent years working in the mortgage industry, and my goal was
to close one loan per week.

Monday through Friday I would find myself a spot in the back of
the office where I could pound out my phone calls from 5:30pm
until 8pm every night. My daily goal was to take at least three
applications per evening, resulting in fifteen applications per
week.

This is how I obtained my applications.

1. I was always prepared. Every thing that I could possibly need
was at my desk. If a customer had a question about monthly
payments, my mortgage calculator was right there. If a customer
had a question about a particular loan program, I had my
literature right there. When a customer commented on their needs
and situation, my stationary was right there to take notes.

It is very important to have all of your resources at your
finger tips, otherwise you will be fumbling around looking for
things, or putting your customer on hold, while you find what it
is you need.

2. Take the edge off

When you are speaking with a potential customer, the
conversation doesn’t have to be 100% business all of the time.
You can take the edge off by finding something in common with
your customer. If you hear a dog barking or a baby crying, make
a comment about it. People love to talk about their pets and
baby’s. This will relax your customer, making it easier for you
to get the appropriate information from them to complete your
application.

3. Overcome objections

During the application process you will be hit with many
objections. This is perfectly natural, most people don’t jump at
the chance to fill out applications for mortgages and refi’s.

Here are some of the more common objections;

A) I have to speak with my spouse.

A good response to this would be; Is your spouse available to go
over it with me right now? I would be more than happy to discuss
it with him/her.

Another objection . . .

B) I have to think about it.

A good response to this would be;

Is there something that I didn’t explain clearly enough? Or, is
there anything you would like me to go over with you again.

The above objections are probably the most common you will come
across. If the responses I recommended don’t get your customer
talking again, than politely thank them and ask their permission
to send them some literature.

4. Purchasing Leads

I often found purchasing leads from a reliable lead source to be
beneficial when it came to taking applications. The reason is
obvious, these people are making it very clear that they want
somebody to call them so they can apply for a mortgage, and most
likely they are waiting by the phone. So its worth a shot.

These are only a few of the activities I practiced during my
time as a loan officer, and it was rare that I didn’t meet my
weekly goal of fifteen applications per week.

I’m sure if you practice these same activities you will
experience the same success that I did! Good luck! This
article may be reproduced by anyone at any time, as long as the
authors name and reference links are kept in tact and active.

Jay Conners
http://www.articlesbase.com/sales-articles/three-ways-to-increase-mortgage-applications-2282.html

http://MikesDailyMarketReport.com: Provides the mortgage interest rate trends and navigates through the current interest rates for home loans. Mike Bjork provides this daily service by watching the interest rates in California by projecting his thoughts on the mortgage interest rates forecast. By trade, Mike Bjork is a Sr. Mortgage Planner with First Cal Mortgage.

Please Subscribe to MikesDailyMarketReport.com or my YouTube Channel at MikesDailyMarketRpt.

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Demonstration of Henry Demirchian’s Mortgage Payment Calculator app for Android devices.

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This has happened like clockwork coming into the holiday season the last 3 years. It can be costly to you and possibly kill your loan if you don’t prepare for it properly. If you live in Seattle Area, give me a call at 425-264-7007

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