If you’re looking to buy a house or make a real estate investment, then you’ll come across something called a down payment. Those of you that have never encountered this term before will be confused as to what it means and why it’s important. So, here’s everything you need to know about mortgage down payments!
What is a mortgage down payment?
Down payments are payments that you make to cover some of the costs of a large purchase. With relation to mortgages, it’s basically a percentage of the overall loan that you have to pay upfront.
For example, let’s say you want to take out a $500,000 mortgage to buy your dream home. In order to get this loan, you will need to make a minimum down payment. The amount you pay gets taken off the overall loan, meaning you have to pay the rest back in installments.
How much do you have to pay?
This honestly depends on where you’re getting the mortgage from and how much you’re willing/able to pay. Generally, you can get your mortgage loan from mortgage bankers or brokers. Places like Evolve Bank & Trust are mortgage bankers as they handle everything in-house and will provide you with the money themselves. Brokers will act as a middle-man to help you find the right mortgage.
Your mortgage provider will basically set the minimum rate for a down payment on the mortgage. It’s believed that the average down payment is around 5.3% of the total cost of the house. However, some people will pay up to and over 20% of the house cost – it depends on how much you can afford to pay. As long as you can afford the minimum requirement, then it’s basically up to you!
Why are down payments important?
A mortgage down payment is critical for a couple of reasons. Mainly, they’re a key factor in determining if you’re eligible for a mortgage or not. Fail to meet the minimum down payment requirements, and you won’t be able to get the loan.
Also, down payments can influence how much money you have to pay back on the loan. A large downpayment results in smaller payments that last less time, while a small one is easier to save up for but results in a longer mortgage term.
However, the main reason these payments are important is that they make homeownership more accessible for the average person. Instead of needing to save up tens or hundreds of thousands of dollars to pay for a home, you just have to save up enough money to cover the down payment. This means you can access a mortgage loan and get the home you’re always dreamed of.
Final thoughts…
So, if you’re looking to invest in real estate or buy your first family home, then you need to know about down payments. The biggest thing to think about is how much you can afford to pay. Weight up whether or not you want to make a big down payment or a small one. Either option comes with pros and cons, so decide which will work best for you.
Do you need lots of money to start up a business? Does starting one up on a shoestring budget sound just too good to be true? Absolutely not! There are plenty of successful entrepreneurs out there who have started up their own business with very little money. It takes a bit more creativity and more work, but it is more than possible.
In an ideal world, of course, you would have enough capital to start a business to allow you to move more aggressively and grow your business quickly. However, if you have no money, you shouldn’t be discouraged from starting your own business. If you have great ideas and a viable business plan, there are other ways of moving forward, and that is what we are going to look at in this article.
Ideally, you wouldn’t need to borrow money to start your business. After all, you the whole idea of creating your own business is to build an income. You don’t want yet another bill to have to think about.
However, sometimes, to keep afloat, you simply have to borrow money. Inadequate funding is a significant reason why many small businesses struggle. You have to be ready to take on the right kind of debt. Not all debt is bad. However, before you take out a loan or any other form of credit, you need to have a plan in place for paying it back.
However, much as you want to be positive about your enterprise, there is always the risk that your company could fail. Instead of nourishing your bank account, you might end up selling your house, your car, and sacrificing your child’s college fund just to pay off your debts. Be smart when it comes to taking risks.
Spend wisely
If you have limited capital, set aside any thoughts of a swanky store or a terrific office. Start at home and enjoy the advantages of working at home. If you do have to be “out there” to sell your goods, rent a small section on a market or at a fair and only think about renting a permanent spot when you start making a profit.
You also need to think about operating as frugally as possible. As a sole budget business owner, you don’t have the luxury of wasting resources and spending money without thinking about it very carefully. Every single cost comes directly out of your pocket.
Spend money only when it is absolutely necessary. Try to avoid buying equipment and machinery from new; instead, look at Equipment Auctions or hiring it instead to save some cash.
Make sure that there is a demand for your business
This is something that you should be doing before you do anything else. If you don’t have enough money, there is little margin for trial and error. Your company will succeed only if it creates enough revenue to fund it. Be sure that the business that you are about to start can give you the results you want. Otherwise, you might even lose the very few funds you already have.
Create a professional image
You have heard of the saying ‘fake it until you make it’. Well, that is where this is applicable. Even if you are working from your kitchen table surrounded by piles of laundry, it doesn’t hurt for your customers and clients to think you are running a well-oiled machine – and we aren’t talking about your washer!
Your success depends on how your customers regard your company. Letting them know you are a one-man-band working from home can sometimes be detrimental to your business. Customers generally prefer to deal with a company that shows professionalism and the ability to deliver what it promises, and unfortunately, these traits are often associated with large, well-established enterprises.
Looking professional doesn’t necessarily mean spending heaps of money. You can start with stylish business cards and stationery. If you have a website, you can build one that looks super sleek. Answer phone calls politely and professionally, and make sure there are no distracting noises in the background such as barking dogs or noisy children.
Be passionate
The one thing you can put unlimited amounts of into your business is passion. In fact, small startups often have more passion than big corporations, and this is a huge advantage. If you don’t have the passion and the drive to do well, you will find it very difficult to succeed. Passion will help you maintain your enthusiasm and energy to do what is needed to get the company up and running and keep it going even when it feels like it isn’t worth it. This is what will set you apart from others.
Be a customer service wizard
Finding new customers can be hard work. It involves aggressive marketing, which you may not have the resources for. It is much, much easier to retain customers and encourage repeat business than to generate new, although it should never be either/or. The best way of doing this is to ensure that you offer a top-notch experience for your customers to make them want to come back time and time again.
Remember; the customer is king. Roll out the red carpet every time they do business with you, and they will come back over and over again and recommend you to family, friends and colleagues.
10. Have a steady cash flow
When you don’t have much cash, making sure that the cash that you do have is flowing is essential. You do not have the option of waiting for 60 or 90 days before you can get paid for services that have already been provided or goods that have already been supplied. You need the cash, and you need it right now. Thus, you always have to make sure that your company generates cash reasonably quickly.
One tactic to make sure you have cash is to stop or restrict inventory. Inventory ensures that your cash will be retained in your products. Only buy what you can sell. Avoid overstocking, particularly slow-moving items. Unless you can shift stock quickly, don’t tie your capital to excess inventory.
As you can see, it is more than possible to start a successful business on a shoestring budget. With careful money management, creativity and professionalism, you can look forward to competing with the big boys!
When buying a home, securing the down payment is usually one
of the biggest obstacles that most Filipinos face. Sure, you can acquire a home
with minimal or zero down payment, but that only increases the amount you need
to pay monthly and in the long run, not to mention the length of the loan term
you will get.
Before you look for pre-selling houses in Cavite or other places, here are some ways to save up for a down payment:
1. Minimize debt
One of the first things that a lender or bank will look at
is your current debts. If you have a lot of financial liabilities in the form
of debt (e.g. car loan, business loan, personal loan, etc.), they may not be
too keen to let you borrow money. Hence, you may not get the house you want or
may have to pay a larger amount to secure a loan.
If you’re thinking of buying a house soon, minimize debt as
much as you can. This way, you can set aside more of your income for a sizeable
down payment.
2. Be smart about your money
Saving up for a down payment will require a lot of
sacrifices, especially if you are raising a family at the same time. If you’re
really set on buying a house, you must be willing to improve your spending
habits by doing the following practices, for example:
Stick to your budget.Even if you’re not planning to buy a house yet, it’s good practice to set a budget for yourself and learn how to stick to it every month. Make sure to factor in your savings (for the down payment) when you create your budget, and deposit the amount right away in a separate savings account.
Set aside wants for now.Focus on saving up money for a down payment and think about your future every time you want to buy something that you don’t need. That new gadget, jewelry, or designer bag can wait for now.
Make adjustments.Whenever you can, make adjustments to your lifestyle in order to save more money. For example, if you spend too much money on eating out, minimize your restaurant dates to only once or twice a month.
3. Find other sources of income
If you have a full-time job, you can still find other streams of income to bulk up your down payment savings. Use your talents and skills. For example, if you are a good baker, try selling baked goods online or in the office. Or if you’re a talented musician, offer your services to weddings or debut parties. You can also consider starting a business with low investment, such as an online shop or a small food stall.
4. Set up separate accounts
Open a separate bank account for your down payment savings
and don’t touch this account unless it’s for an emergency. Transfer your
monthly savings into this account and consider it as a mandatory
“bill.” This way, you’re training yourself to be obligated to save
money every month, instead of treating it as an afterthought.
Owning a house is every Filipino’s dream. But if you don’t
have enough savings yet, following these tips is a good start.
The digital age has revolutionized the way in which we live our lives, but sadly it has also revolutionized crime. There’s now a hack attack every 39 seconds, 300,000 new types of malware are created every day and the average cost of data breaches is estimated to reach $150 dollars this year. Cybercrime is now classified as one of the single biggest threats to businesses and individuals and so whether you use IT for work or just at home for pleasure, here are 5 ways in which you can improve your security.
Educate yourself
The first thing you should do to protect yourself against cybercrime is to educate yourself, your family and your co-workers on the most common types of cyber-threats and how to avoid them. Burying your head in the sand when it comes to data security and cyber-terrorism makes you an easy target for hackers, so start doing some research into the ways that hackers can gain access to your information so that you can then begin putting measures in place to block them.
Bring in an expert It’s safe to say that not all computer users really understand how the devices they use work, and that’s ok so long as you realize when it’s time to cut your losses and to bring in the professionals so that they can advise you on how best to stay safe online. On a personal level, you can pop into any computer store and ask for advice on computer security, in fact, Apple offers free security seminars, or if you’re a business then reach out to an IT company that offers security consultancy services tailored for corporate needs.
Don’t ignore updates Those requests to update that keep appearing on the side of your screen may be irritating but they’re actually trying to keep you safe. Most updates released contain fixes to bugs or errors that make it easier for hackers to gain access to your computer, so by ignoring them, you’re leaving your defenses weakened. With more than 300,000 types of malware created every day, it’s no wonder that computers need to update so frequently in order to keep up. So the next time your computer asks to update click yes and then go and make yourself a cup of coffee.
Take passwords seriously People have gotten sloppy with passwords over recent years and it’s leaving them, their personal information and their employers open to attack. It may be annoying trying to remember different passwords but having the same password for every system is a bad idea, as is using common words such as family names, dates of birth or the name of your pet. Try to create passwords from random letters, numbers, and symbols or make them acronyms of something you’ll remember.
Create an incident response plan Finally, if the worst comes to the worst and you do experience a data breach then you need to have an incident response plan in place to minimize the damage. IT consultants are best placed to help you create a response plan but at the very least you should know who the issue is escalated to and who is responsible for guiding your actions.
Getting a job in the Philippines still tends to be a
struggle despite many available openings in various companies. College
graduates also normally go through a phase of being suddenly undecided on the
path they’d like to take next, even with diplomas and impressive credentials
under their belts. The competition can be pressure as well because it’s easy to
feel small in a world where so many seemingly more qualified individuals are
around you, pursuing the same thing.
That said, if you feel trapped in your job-hunting, take the time to reflect on your strengths and goals, and then consider these top industries with the most job openings in the country:
1. Business Process Outsourcing
The BPO industry in the Philippines continues to thrive, and it’s teeming with job opportunities for various fields of expertise, including information technology, communication, healthcare, and marketing. Call centers and back-office service providers also hire college undergraduates, and the compensation they give is widely known to be higher than the average compensation given by other industries. Explore BPO companies near your place and see where you can fit.
2. Information Technology
You’re in luck if you graduated with an IT degree and is
specializing in software development. An entry-level employee – specifically a
junior software analyst and a front-end developer- in an IT-company can earn as
much asâ±21,000 every month, a figure that’s higher most entry-level
salaries in the Philippines.
3. Data Analytics and Security
There is a growing demand for data security professionals,
so if you have a related degree, you have high chances of getting hired in the data
analytics and security industry. Make sure to update your skills when
necessary, because the demand for these roles continuously evolves.
4. Legal and Public Relations
Law-related positions are paid overâ±27,000 every month,
while PR professionals are paid moreâ±24,000. They’re actually the first and
second highest-paying jobs in the country, and they’re in-demand, too.
5. Technical Vocational, Retail, and Manufacturing
The rise of the construction and manufacturing industries
has led to technical vocational jobs being in-demand. Technical vocational
graduates may also work in the retail and manufacturing industries, so it may
be safe to assume that they have diverse career options.
Tips to Land a Job
What if your degree isn’t related to any of those top five
industries? What if they are, but for some reason, you still aren’t getting hired? The job hunt can
get disheartening if none of the companies you’ve applied for has reached you
after the initial interview, but with these tips, you may find yourself soon
weighing tons of offers.
Make job-searching a priority. Apply for as much as
companies as you can every week or every month, and don’t miss out on job
fairs. Have someone look at your resume, too, preferably a friend with job
experience, and ask them for advice on how to improve it and to ace your job
interviews.
Widen your search by looking for career opportunities
outside your current field. For example, if you’re a Finance graduate, don’t
limit your search to a bank and financial service companies alone. Look for
jobs in other industries such as retail because they might be looking for staff
in their finance department.
Consider expanding your qualifications, too. Maybe the jobs
you’re after are something you’re underqualified for, so in this case, you
might need freelance or part-time work to gain experience. Don’t rush on deciding
to get a master’s degree yet. The costs might not be worth it, especially if
your prospect companies value experience more than knowledge.
Get help from your friends, family, and acquaintances who
can refer you to their companies when they have new job openings. And if
nothing works, don’t lose hope and give up. Don’t be afraid to explore
part-time jobs, or perhaps start a business. Maybe your calling is different,
and you’re meant for something greater.
Recent Comments