figence.com » Loan http://www.figence.com Personal financial advices, tips, and ideas Sun, 29 Jan 2012 12:00:07 +0000 en hourly 1 http://wordpress.org/?v=3.3.1 Plan Your Child Education Fund Early http://www.figence.com/2009/05/06/plan-your-child-education-fund-early/ http://www.figence.com/2009/05/06/plan-your-child-education-fund-early/#comments Wed, 06 May 2009 13:47:00 +0000 Farid Fajjri http://www.figence.com/?p=184 Planning and preparing your children education fund since  your baby was born might be a necessary item for your budgeting that not should be forgotten and have to be your concern as a new couple. Even your economy was not provide,  you and your spouse must not eliminated this item whatever your condition. And don’t ever trade it for another expense which not emerge.

Your education fund planning must cover until your baby take college at his/her best favorite university. But, for you who your parents not provide your college fund, you don’t have down to finish your master. A college loan has given people all over the United States a chance to further their education, even if you are not making a lot of money. Education loans can be a great option in paying for college.

You’ll find these loans offer a low interest rate and a generous repayment period. Of course, student loans must be repaid, usually with interest, although some education loans have provisions for cancellation if the borrower performs a program-related service. If you are looking for a loan, be aware that there are many different types of loans. Try to find the student loan that fits you the best.

For example, there is a loan called the Federal Stafford Loan. The Federal Stafford Loan is the most widely used loan in the student education loan program. Federal guidelines limit the maximum interest rate to no more than 8.25% and outline repayment terms of up to 10 years. Remember that if you ever need help or are falling behind on payments, consider a consolidate student loan.

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]]> http://www.figence.com/2009/05/06/plan-your-child-education-fund-early/feed/ 0 How Much Fund will The Bank Lend You? http://www.figence.com/2009/04/04/how-much-fund-the-banks-will-lend-you/ http://www.figence.com/2009/04/04/how-much-fund-the-banks-will-lend-you/#comments Sat, 04 Apr 2009 07:07:31 +0000 Farid Fajjri http://www.figence.com/?p=150 Knowing how much fund you can borrow is required to get the best approval on your loan. Banks will decide your loan application based on how much you’ll be able to repay your mortgage loan monthly. They estimate your payment by looking at your income, your available cash, your debt, and your credit history.

When you have known how much the banks will lend you, it didn’t mean you take that all amount to insert in your debt. You should take no more than 28% of your net income (after taxes) for your total payment to get breath for a comfortable lifestyle, funding for your retirement, going vacation, or even going out to eat. You don’t forget you still need the other funds of home ownership, such as repairs, maintenance, and higher utility bills.

There are two debt-to-income ratios that you can calculate to estimate how much total payments will banks approved.

First, take your annual salary and multiply it by 28%, then divide it by 12. This is the maximum allowable amount of your total monthly debt payments (including principal, interest, and escrow payments). This is called the front-end ratio. This ratio used for your mortgage loan payments.

Second, take your annual salary and multiply it by 36%, then divide it by 12. This is the maximum allowable amount of your total monthly debt payments. This is called your back-end ratio.

Banks will estimate base on how much of your gross income is required to pay all of your debts combined. That is including the mortgage as well as car payments, credit card payments, student loans, and child support and alimony payments.

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]]> http://www.figence.com/2009/04/04/how-much-fund-the-banks-will-lend-you/feed/ 1 Living with Debt is Not Worse? http://www.figence.com/2009/02/26/living-with-debt-is-not-worse/ http://www.figence.com/2009/02/26/living-with-debt-is-not-worse/#comments Thu, 26 Feb 2009 23:33:10 +0000 Farid Fajjri http://www.figence.com/?p=124 Who’s not pleasure stay with plentiful money all the time? I’m sure you’ll be able to get what you want with no more thinking about the price and how much the cost will you pay. Sadly, most people always forgot how much will they spent their earning monthly without considering their need but always shopping what they want. So, their net worth go down to zero level or minus at the end of month.

Living with debt or credit absolutely is not worse. When you need a car or a mortgage and your cash not enough to pay all your need, what would you do? Wait until your pocket able to pay the cost one time or searching a car/mortgage loan that you able to pay every month. I’m sure you’ll take the second option to get your need. That’s why you need to know how to manage your debt before you’ll get a trouble to get out your debt.


To make your financial health, you should evaluate your debt to income ratio whether is in excellent, good, borderline or red flag zone. This ratio could indicate that your debt is too much or not according to your income.

Calculate your debt to income ratio:

Monthly mortgage payment (including property taxes and insurance) or rent
Monthly home equity line of credit or loan payment
Monthly car payments
Monthly revolving credit payments (furniture, appliance loans, etc.)
Monthly student loan payments
Monthly minimum credit card payments times two
Other monthly loan amounts
Monthly child support payments
TOTAL MONTHLY DEBT PAYMENTS

Monthly net (take-home) pay
Annual bonuses and overtime, divided by 12
Other annual income, divided by 12
TOTAL MONTHLY INCOME

Total Monthly Debt Payments Divided by Total Monthly Income = Debt to Income Ratio

Financial Health Barometer

If your debt to income ratio is: Less than 30%: Excellent!
30% to 36%: Good. You won’t have any problem with lenders, but work to bring it down below 30%.
36% to 40%: Borderline. Some lenders will still give you a loan but you may struggle to make your payments.
40% or higher: Red flag. Your credit situation requires attention.

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