5 Must-Know Types of Mortgage Loans


Mortgage loans are loans taken from banks, online brokers or independent mortgage brokers by pledging property owned for purchasing a residential or commercial property or to refinance a loan. Mortgage loans are usually for a 15 or 30 year period. Mortgage payments are evened out according to the number of years, the rate of interest and the type of mortgage. The property purchased is used as security or collateral to obtain the debt. If the borrower of the loan defaults on the mortgage payments the lender has the right to sell the property by employing the foreclosure process.

To be eligible for a particular loan the lender examines the employment and income generation of an individual or family to assess that monthly payment can be paid regularly by the borrower. The three important aspects that are taken into consideration to qualify for a loan are Credit Score, Monthly Income and Down Payment. Credit scores indicate the risk of offering a loan to a borrower. Higher the score lowers the risk. Good credit scores also ensure reasonable terms of the loan and a lower rate of interest. Monthly income is evaluated to ensure expenses are not more than income. The amount paid as down payment reduces the risk of the lender to cover the full expense of the loan in case of default in payments.

There are different types of mortgage loans available to suit the requirements of different borrowers. Here are the following:

  • Fixed Rate Mortgages are among the most popular mortgage products which are not influenced by interest rate rise or falls. The interest rates are locked, and payments remain the same despite rising or fall in interest rates. Fixed rate mortgages are most popular when interest rates decline.
  • Adjustable rate mortgages provide a fixed rate of interest for a specific period and thereafter resorts to an adjustable rate of interest. It fluctuates according to market interest rate changes after the fixed rate period is complete.
  • Balloon Mortgage allows borrowers a lower rate and monthly payments for a period. Such a period lasts for three to ten years. After the completion of the term the borrower is required to pay the principal balance as a lump sum amount. If applicable and possible the balloon mortgage can also be converted to a fixed rate or adjustable rate loan.
  • Home Equity Line of Credit is variable rate mortgages in line with the prime rate. You are allowed to take a credit up to your credit limit which is the maximum amount one can borrow under any plan. The interest payments are tax deductible and one can also pay the previous mortgage by taking a percentage of the appraised value of the home such that the loan amount covers your previous loan balance and your current fund requirements.
  • The Interest-Only Mortgage requires only interest payments to be paid for a specific period of time following which the terms of the loan change and a new mortgage amount is derived. This new mortgage will be paid with principal plus interest payments for the remaining number of years.

Some online lenders offer the lowest interest rate in the market so choose mortgage interest rate or mortgage refinancing options that best match your situation while saving time and money.

How to Convince an Investor to Fund Your Start-up Business

For those people who want to start their own businesses, one of the hardest things to do is to get the capital that they need to do so. This is because most of the traditional sources of loans or funding are apprehensive in providing funds for start-up businesses. Given this, most of them opt to shelve their business idea until they get the money they need.

Some opt to sell equity, and some of them borrow the money from relatives and friends. However, people who want to go into business for themselves need not wait until they get the money from these sources because there is a good source of capital that they can tap into. All they need is a good idea and a strong business plan. This source is an angel investor.

Angel investors are either individuals or companies who put in money into startup businesses. However, their role in the business is not limited to being an investor because angel investors take an active role in the management of the business as a means of protecting their investment, which is why angel investors are usually businessmen themselves who are astute in handling businesses. You can also them by getting ideas from the best small business ideas when searching in Google.

There are three ways by which an angel investor can provide funds for a business. One of these is by providing money through a promissory note or a loan, which can be converted into an equity position in the company after the launching phase of the company. Usually, the investor would take about 15 to 30 percent equity in the company, which is enough to gain a set in the board.

The second way angel investors provide funds is through a cumulative convertible preferred stock option, wherein the investor defers the dividend payments he would receive from his stock, while he holds a seat on the board.

The third way is for an investor to get an equity position right away when they put in their investment. In this set-up, they have an option to bring in one or two of his associates to help in the management of the business.

One good source of money that aspiring entrepreneurs can tap is an angel investor, which can provide them with the capital they need to launch their business. The good news is that apart from being able to get the money they need from these investors, they can also gain a number of benefits from the managerial expertise of the investor.

Outsourcing Benefits You Don’t Want to Miss


The term BPO stands for “Business Process Outsourcing” and is better known as simply “outsourcing.” It is basically the process by which a company can delegate certain functions of their business to a specialized organization that can get it done more cheaply, quickly and efficiently. BPO services have been the latest mantra in India today.

The BPO boom seems to be increasing every day with more and more companies deciding to follow the race, making conditions really viable for a positive growth in the BPO industry.

Business Process Outsourcing is one of the fastest growing segments of the Information Technology Enabled Services industry. It has hit the top of their list today. The basic of BPO services is specific and definite, do what we can do best and leave everything else to business process outsourcers. Companies are moving their non-core business processes to outsource providers.

BPO saves precious management time and resources and allows them to focus while building upon core competencies. In other words, BPO services can be defined as a strategic management tool that can help organizations to improve process level efficiency and effectiveness, as well as reduce costs.

Another great BPO benefit is that it helps companies to focus on core areas. Companies generally outsource processes to reallocate accountability and control costs. Thus the management is in a better position to focus on core areas, and not keep itself engrossed in other areas.

Outsourcing also helps companies to avoid capital expenditures, which is in particular important in non-core areas that may need new systems and up gradation. By and large, companies only want to spend money on core areas.

Business Process Outsourcing provides quantifiable benefits through improved efficiencies, lower overhead, reduced payroll and benefits expenses, and fewer capital investments. Other BPO benefits include assurance of best practices, skills, and technology.

It is important to note that BPO provides access to proprietary workflow systems, process re-engineering skills, and innovative staffing and delivery models, coupled with world-class technology delivered by experts. Another benefit of BPO is a reduction in costs.

Business Process Outsourcing is the act of giving a third-party the responsibility of running what would otherwise be an internal system or service. For instance, an insurance company might outsource their claims processing program or a bank might outsource their loan processing system. Other common examples of BPO are call centers and payroll outsourcing.

The basic of finding a loan guarantor for you

Applying for a personal loan to be the capital money to the business you want to launch is
the ultimate solution for entrepreneurs like you. There is no assurance that your application
in a licensed moneylender or banks in the Philippines will accept or reject it. It depends
upon your credit score or if you have a thin good credit history.

Why do you need a guarantor?

If you are not open for a collateral loan and prefer to apply for a personal loan philippines, you need to
have a guarantor. Banks and even the moneylender will consider your application if you
have a guarantor, he serves as the insurer that in case you cannot settle your payment, they
will be responsible to do so on behalf of you, since they signed the agreement.

Who can be your guarantor?

An ideal age of getting a guarantor is between 18 to 75 years old that can afford to settle
the occurring monthly payments. You can ask a reliable friend with good financial status or
parents who have invested their money in multiple ways.
What are the things you should discuss with your guarantor?
As the borrower, choosing someone to be your guarantor, you should discuss the following
important details to him or her.

  • Is he/she willing to pay the personal loan for you?

Both of you should have mutual trust as well as understanding. Mutual agreement off the
paper is essential since they have to pay your debt if in case you are unable to do so.
Ensure to your guarantor that you will settle the payments on time, you just need a
guarantor that will prove to the moneylender that you are a responsible borrower.
When the situation comes to worst due to unforeseen life obstacles, you must pay the
guarantor for the amount they have compromise towards your quick online cash loan.

  • Can he/she accept the loan agreement?

After you choose someone to be your guarantor, you have to be sure that he/she accepts
and respects the agreement between you and the moneylender. If they do not wish to take
the call from the moneylender for verification, it’s wise, to be honest with you.
Take note that not all types of the loan require you to have a guarantor, only borrowers
requesting for a huge amount of money are required.

The Essential Roles of Data Cleansing to Business

Cleansing is vital to health, sustainability, and longevity. It applies to everything including
business data. Data cleansing optimizes the accuracy of the system, consolidate shared
information, correct corrupt records, and delete old or duplicate data.

So, how do businesses benefit from it?
#1 – It improves data quality.
The core of every business is the customer data.  It is important to have an updated,
accurate data so you can effectively address their needs. Improved data boost the
responsiveness and help you make smarter decisions.

#2 – It enhances your relationship with customers.
Data cleansing helps you offer the right products or services to the right customers. When
you offer them to the wrong customers, you will waste your time and money. Relevant,
updated customer data information will prevent these issues and boost the return on
investment (ROI).

#3 – It improves your customers’ perception.
Correcting misspelled names and addresses as well as other pertinent information is
necessary to show that you value your customers. A misspelled name is an instant turn-off
that can affect the result of your effort when you reach out.

#4 – It increases productivity.
A clean and improved database helps your employees become more productive. The
updated information of your customers makes them become more efficient in finding them
and sending the deliverables. It also prevents delayed or returned mail.

#5 – It influences the output of the manufacturing process.
If your data is showing inaccurate numbers, you will end up in under or over-
manufacturing of goods. An incorrect data can affect the orders of your retailers who want
to have adequate stocks for their own customers.

#6 – It reduces spam.
Spam messages are a big no-no. Repeated messages that enter the consumers' phones and
emails are annoying and make your customers irritated. Being spammed is a turn-off. A
regular cleansing of the database is necessary to prevent spam.

Now that you see how data cleansing can be advantageous to your business, it’s time to
look at your database and upgrade it.