Friday, July 31, 2009

Investing in Stock Market - Beginner's guide

In my last post I had discussed about the common myths about stock market investment. Today I would like to share with you, whatever knowledge I have gathered or came across, on how to invest in stocks, or rather say how to get started with stock market investment.

Investing in stocks has always been a frugal financial strategy for many, and statistics show that it has been successful in providing returns that exceeded much more than many other investments. Here are some of the things that you can do if you are looking for investment in stock market.

The first and the foremost thing is to get educated about stocks. There are a number of new terms like short selling, dividend yield, bull market, asset backing and so on. You can get all stock related information online from various financial sites, or you can read about stocks,attend seminars - collect proper information in whichever way you like. Before you proceed any further, you must have the background knowledge and make sure that stock market investment is for you.

Once you have decided on investing, next step will be to choose from the two options - buy stocks directly or go through a broker. Even if you go for a stock broker, it is advisable not to rely totally on him for all the stock market related decisions, try to collect as much information as possible.

The next point that you must keep in mind is diversification, that is do not put all your money in just one or two stocks. Successful investors diversify in multiple stocks. For the beginners, it is always better to go for long term investment.

There are a various strategies that contribute largely to the making of quality returns. A great deal of research work and dedication is the key to success in stock market.

Friday, July 24, 2009

Stock Market Myths:

Stock market can be a very good option for investment. However, you will find that there are a number of stock market myths existing among the common people. These unrealistic and wrong beliefs can sometimes prove to be very dangerous. Here we go over those common myths about the stock market.

Investing in stock market is equivalent to gambling - This is the most common myth which I found among the common mass. The belief is that when someone makes money, someone else loses it. They are of the opinion that money never grows in stock market, it only gets transferred from one investor to other.

Next comes the traditional wisdom - Buy and hold. Many people think that the best strategy to make money in stock is to buy, hold them for years and sit on them for as long as possible, and you will definitely beat the market.

An equally popular myth is that investing in stock market is full of risk, since the market is random and unpredictable.

There are many more such wrong beliefs which prevent the common people from investing in stocks and keep a realistic view of the stock market. If you think that I have missed out on some important point, please feel free to leave your valuable suggestions.

Saturday, July 18, 2009

Some steps to get mortgage refinance approval:

Earlier getting approval for mortgage refinance was quite easier as compared to the present scenario. The homebuyers who had honest credit history and can afford a first installment, just had to do a few paperwork with a refinance company and the dream house was there. At present, the picture is totally different and have to face challenging conditions before getting approval for mortgage refinance.

Here I have just jotted down some steps for mortgage refinance approval:

1. Some basic research: It is always advisable to do some basic research about your current interest that you are paying, how much is your house worth and how can you get the maximum
advantage from the new agreement.

2. Check out the finances: Calculate how much finances you can obtain. Approximately 80% of the value of your house will be the amount that you can obtain on refinancing if you have good credit
history .

3. Save time with proper documents: If you want go ahead with no check credit refinance, try to have the necessary documents ready, that the lenders generally asks for, to save time.

4. True evaluation of your property: Once you have decided on the lender, it is very important to ensure that your property is in a good state. If necessary do some repairing, so that it is evaluated at the maximum price. Also don't forget to compare the rates and choose the one that best suits your requirements.

5. Go to closing: Always remember that you are in control now and do not do anything stupid with your money. There are many lenders and banks who will work with you. More the number of creditors, more is the possibility of getting your mortgage refinance.

Thursday, July 9, 2009

Mortgage Revolution - THE Mortgage event of 2009

Mortgage revolution is a revolution by mortgage professionals for mortgage professionals. It will be a 3-day conference and the main aim will be to focus on education through participation and help to raise $250,000 for charity. Unlike the other conferences, Mortgage revolution will be a non profit and free of spam conference and the main purpose is to provide a new breed of leadership to a battered mortgage industry.

The objective behind the event is to educate and inspire originators, irrespective of whether they are new, seasoned, banker or broker. The conference will be held at Cobb Galleria in Atlanta,GA. The following video is a must watch and will help you know what it is all about - THE Mortgage Revolution.

This is particularly for all mortgage professionals: Please come and join the revolution this November,2009. It is your duty and responsibility to protect the profession that you love.

Saturday, July 4, 2009

15-year and 30-year mortgage - Pros and Cons

Deciding on a mortgage term is one of the important factors for the home buyers. While talking of mortgage, we generally think of the interest rates alone. But the mortgage term is something more basic that you need to consider, which usually come with two options: 15-year or 30-year mortgage.

15-Year Mortgage

In a 15-year mortgage term you have to pay less interest rates as compared to 30-year loan. Even though the monthly mortgage payments are higher, but still people prefer as it allows them to build home equity quickly because of shorter amortization. Another reason for the popularity of this type of mortgage loan is that everybody wants to clear debt as quickly as possible.

Less interest
Loan cleared faster
Cheaper mortgage insurance

Higher mortgage payment
Less chance of benefiting from other investment

30-year Mortgage

The 30-year mortgage has the advantage of lower monthly payments due to which it has been a choice for many homeowners in the past. The fluctuation in the interest rate does affect you monthly payment in the entire time period.

lower mortgage payments
Capital repayment
Better than renting

More interest paid
Negative equity
Less flexibility

Choosing the length of the mortgage term is totally up to you. Here I have just jotted down the pros and cons of both the terms that can help you choose the best option for you.