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Suggest You - Banks Selling Real Estate – A Real Bad Idea
COFFEE futures and options are certainly filled with action. Long haul and day trading coffee can be very exhilarating. Support and resistance points can work very well. Cocoa and orange juice are best traded for the long haul. The liquidity in all three is limited, but still enough to move in and out with your dignity.For about $2800 of account margin you can control a 37,500 pound contract of Coffee worth about $45,000. A 1 cent move equals $375. (example: a move from 120 to 121)When the coffee market is motivated, it can rip through support and resistance points easily. Stops usually work well but slippage is always possible with the NYBOT. Coffee futures and options trade for a very short time daily. (9:15-12:30am EST) The opening indications are usually wrong. Many times the market indication
The average American has about $8,000 in credit card debt--and most of us would like to reduce it! You may know that there are programs online that can help you drop your balances and get debt free, but are they really effective? Some work better than others. Here's a guide to help you make the best choice:Debt Reduction Plans:You can find these debt reduction plans through many personal finance websites or money management websites. They're designed to help you control your debt by giving you step-by-step instructions for organizing your accounts, creating a payment plan and implementing debt reduction strategies. Overall, these are the best bet for folks who just need a little help getting organized. If you only have a few credit cards and you're currently able to make at least the minimum p
Anyone who complains about real estate commissions now, is not going to be thrilled if banks have their way and are allowed to sell real estate, something that the American Bankers Association (ABA) has been tried to do by lobbying, pressuring Congress - and paying millions of dollars in the process by way of special contributions - for the past seven years. And it does not matter if banks are not allowed to share commissions. All banks simply need to do, once they are permitted to step into real estate, is to buy brokerage firms and they can share all the commissions in the world without ever once breaking the law. They do not even need real estate licences.
In fact, since we are on the subject of commissions sharing, let’s do a little numbers crunching to find out the ‘commissions’ banks are charging consumers today. They do not call them ‘commissions’ – they call them ‘interest charges’, but fact of the matter is that a fee computed on a percentage basis in payment for a service is a commission. So therefore, the user’s fee charged by a bank to a borrower on a percent basis for the use of a certain sum of capital is nothing other than … a commission.
Banks base mortgage rates on a variety of indexes. Among the most common indexes are the rates on one-, three-, or five-year Treasury securities. Another common index is the national or regional average cost of funds to savings and loan associations. A few lenders use their own cost of funds as an index, which gives them more control than using other indexes. To determine the interest rate on a mortgage, bankers add to the index rate a few percentage points, cumulatively referred to as the ‘margin’. The amount of margin may differ from one lender to another, but it is usually constant over the life of the loan. The formula therefore, is: Index Rate + Margin = Mortgage Interest Rate. Most banks use a 2 percent margin minimum. When they offer ‘special packages’ to consumers, they typically apply a
The living will is often called the will to live and is an advance healthcare directive, or a Directive to Physicians. This document sets out your wishes related to the kind of medical treatment which, should be extended or withheld if you lose your ability to communicate those wishes. In other words, a living will is a health care advance directive which is treated as a legal document, and is usually witnessed or notarized. These documents are usually of standard format and state that, you (principal) are appointing an individual (maybe your doctor) to take your health decisions if you are unable to do so (also called as ‘power of attorney for health care’), or you can lay down in words, specific directives as to the course of treatment which needs to be rendered by the caregivers, or, in particular. It may also
In fact, since we are on the subject of commissions sharing, let’s do a little numbers crunching to find out the ‘commissions’ banks are charging consumers today. They do not call them ‘commissions’ – they call them ‘interest charges’, but fact of the matter is that a fee computed on a percentage basis in payment for a service is a commission. So therefore, the user’s fee charged by a bank to a borrower on a percent basis for the use of a certain sum of capital is nothing other than … a commission.
Banks base mortgage rates on a variety of indexes. Among the most common indexes are the rates on one-, three-, or five-year Treasury securities. Another common index is the national or regional average cost of funds to savings and loan associations. A few lenders use their own cost of funds as an index, which gives them more control than using other indexes. To determine the interest rate on a mortgage, bankers add to the index rate a few percentage points, cumulatively referred to as the ‘margin’. The amount of margin may differ from one lender to another, but it is usually constant over the life of the loan. The formula therefore, is: Index Rate + Margin = Mortgage Interest Rate. Most banks use a 2 percent margin minimum. When they offer ‘special packages’ to consumers, they typically apply a
You’ve done it! A brand new product idea. Or, perhaps, a new service, based on a need you’ve spotted which no one else seems to have noticed. Possibly even a unique and different way to accomplish an older idea. You can see it’s effects, know that it’s a multimillion dollar market winner, in the vanguard of that industry, international in scope. You’re energized, excited, enthusiastic.So what?Yes, dear reader, I said “So what?”I’m not trying to bring you down. But you’ve probably heard the old saying that “great ideas are a dime a dozen.” Unfortunately, that’s all too true. Great ideas are merely a beginning, especially where business is concerned. If you can’t deliver on the promise of that idea, you’ve gone nowhere. It was merely a daydream. So now the serious work begins.
Banks base mortgage rates on a variety of indexes. Among the most common indexes are the rates on one-, three-, or five-year Treasury securities. Another common index is the national or regional average cost of funds to savings and loan associations. A few lenders use their own cost of funds as an index, which gives them more control than using other indexes. To determine the interest rate on a mortgage, bankers add to the index rate a few percentage points, cumulatively referred to as the ‘margin’. The amount of margin may differ from one lender to another, but it is usually constant over the life of the loan. The formula therefore, is: Index Rate + Margin = Mortgage Interest Rate. Most banks use a 2 percent margin minimum. When they offer ‘special packages’ to consumers, they typically apply a
Keep in mind when you are looking at the auction prices on Ebay and do not be led to believe that the low prices you see in the auction are what these products are being sold for. What Ebay does not tell you is that the auction price you see is the highest bid price, not the actual selling price. This means that if the sellers "Reserve Price" is not reached at the end of the auction then the sale will not go through. A reserve price is the lowest price that the ebay auction seller is willing to accept for the item that place on auction. If the highest bid is lower then that item is not sold, buy Ebay still charges you for the item that was placed on auction. The true fact is that more than 50% of the Ebay auctions never sell a product because the buyer has a set reserve price that must be reached by a bidder. E
Banks base mortgage rates on a variety of indexes. Among the most common indexes are the rates on one-, three-, or five-year Treasury securities. Another common index is the national or regional average cost of funds to savings and loan associations. A few lenders use their own cost of funds as an index, which gives them more control than using other indexes. To determine the interest rate on a mortgage, bankers add to the index rate a few percentage points, cumulatively referred to as the ‘margin’. The amount of margin may differ from one lender to another, but it is usually constant over the life of the loan. The formula therefore, is: Index Rate + Margin = Mortgage Interest Rate. Most banks use a 2 percent margin minimum. When they offer ‘special packages’ to consumers, they typically apply a
Look around everbody is offering you a great deal. How many offers do I get from credit card companies offering no interest or very low interest on cash advances? Visa, Mastercard and American Express all offer below cost rates to entice you to their lines of credit. Why do they do this? Traditionally if you needed a loan you would go to a bank fill out an application and get either a term loan or a line of credit, which was prime rate plus a percentage depending on your credit worthiness. Today I must get 3 to 4 offers weekly to get rates for a cash advance for prime less 3, 4 or even 5%. Are these credit card companies stupid? I wouldn’t bet on it. Take a look at the annual reports for theses companies and see that their profits are at all time highs. Today we live in a debt-ridden society where access to funds
But let’s take the 2 percent typical margin. To all those readers who think that 2 percent sounds better than the 6 percent commission commonly charged by real estate brokerage firms, let me point out that the 2 percent margin charged by the banks is per year! So, if it is true that the average consumer keeps his property for seven years, the ‘commission’ charged by the banks is really 14 percent. The only difference is that the margin applies to the principal of the mortgage, i.e. the amount borrowed as opposed to the real estate brokerage commission, which applies on the full sale price. But this is of little solace if one considers that almost fifty percent of all mortgage transactions involve 95 percent financing.
Banks have come to the realization that the U.S. real estate brokerage market amounts to some $61 billions, a sum that, if attached to a single firm, would rank 19th on the Fortune 500, ahead of Boeing, Microsoft, Morgan Stanley and JPMorgan Chase. To paraphrase Scarlet O’Hara in Gone With The Wind, this is a market that's ‘worth fighting for and worth dying for’. To be sure, the tactic adopted by ABA is that of nonchalance. ABA is trying to convince Congress that banks are not really interested in pursuing this line of business even if they were legally able to do so, but that they would like to be able to pursue it ... just in case.
The truth, of course, is much different and deeply rooted in the economics of real estate. Brokerage firms charge commissions to Sellers, the recipients of the money proceeds in a real estate transaction, and only
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