Affording a Home

When you look at purchasing a Miami or South Florida home, you and the mortgage lender will need to know if you can afford the financial commitment. Whether you are a first-time buyer, in the market for another home or perhaps even relocating for a new job, there are requirements to be met. The following information will help you sculpt an idea of affording a South Florida home loan in today's ever changing market.

First, the lender will want your personal information, including who you are, where you work, how much money you earn, your credit history and expected down payment.

Next, you must have a clear idea of if you can afford the South Florida home in question. With a realistic look at your personal financial budget you will be able to understand the amount of the home loan you can afford. Another variable to consider when preparing your budget is to include the maturity of the home loan, such as a 15 year loan vs. a 30 year loan.

Make sure your decisions are informed and accurate. You can play with the calculations and numbers, but make sure you are honest with yourself about these figures. Run through as many "what if" scenarios as possible. Considering this information will be helpful later and you may find yourself grateful for a mortgage loan that you can truly afford.

Financial Fitness: Debt Management and Financial Planning

Financial fitness starts with goal oriented solutions, including financial planning with debt management.

1. Healthy Credit Profile - Starting, maintaining and consistently monitoring are the keys to a healthy credit profile.
2. Debt Management - TAKE CONTROL! This means start living within your means and not letting impulse and pressure make you a victim of unhealthy debt management.
3. Reduce Debt - Rather than making that next purchase, put that money toward managing the debt you currently have.
4. Budget - A financial budget allows for an clear look at our finances.

Members of Credit Unions have the opportunity to benefit not only from high yield savings and checking accounts, but also high return CDs and other benefits. Many customized financial planning and debt management programs are available, including Home Loan Programs, Young Adult Programs, Retirement Financial Planning Programs and more.

This is because credit unions are owned by you, their members. Credit Unions fortify their financial strength by being a not-for-profit organization where profits are returned to their members in the form of lower interest rates and higher yields on savings accounts.

Pros & Cons of Conventional Loans and How to Get Them

There are many types of conventional loans, secured loans, mortgages, signature loans and car loans just to name a few, each with their pros & cons. Certainly you will need to weigh the pros and cons of the types of conventional loans, and how they fit into your financial needs and budget.

Loans will typically fall into one of two categories: unsecured loans and secured loans.

A secured loan, also known as a collateral loan, is where collateral is offered and will be sold by the bank to re-pay the money borrowed in the event of a default on the loan. Banks will usually accept property, stocks and bonds as collateral until the secured loan is paid back in full. Some of the advantages of a secured loan are a chance at having a lower interest rate and convenience. Lenders are more likely to loan money and at a lower interest rate when assets and collateral are used. The risk, of course, is losing the collateral that you or a co-signer has used to secure the loan.

An unsecured loan, or signature loan as it is often referred to, is a loan that is not secured with collateral. These loans are based primarily on your credit rating, the amount of income that you earn and your debt to income ratio. You can expect to have a higher interest rate with an unsecured loan versus a secured loan. However, one of the pros to this type of conventional loan can be the convenience of a quick loan with no application. Imagine how fast a credit card transaction takes place; it can take only a few moments to receive a loan for an item that you want to purchase.

Online Banking Safety Tips

With online banking becoming more popular and practical, safety should be a key issue between you and the bank you do business with. It is important to make sure that your bank has taken the measures to ensure that your financial and personal information is being protected from identity thieves.

Here are two tips to ensure Online Banking Safety:

• Browser Security - Security begins with your web browser. You can protect yourself online by using an up-to-date browser with the most recent security updates.
• Encryption - Your bank should be using an encryption system and Transport Layer Security (TLS) to ensure your online banking safety. TLS is an advanced technology used to scramble your personal banking information and keep it out of the hands of identity thieves.

Small Business Banking: Free Business Checking and Savings Accounts

As a small business owner, you want to focus on banking features that are available, useful and help you realize success with your company. Each financial institution offers unique small business banking programs and packages, ranging from free business checking accounts, business savings accounts, loans and credit card services as well as online features from credit unions and banks.

Here are a few things to consider when looking for a small business banking account:

• Some credit unions and banks offer free business checking accounts, while others require a minimum balance.
• You may need after hour depositing. Many small business banking programs include this.
• Most banks and credit unions offer a debit card or check card with the opening of a free business checking account.
• You may have an option of an unlimited amount of transactions when you start a free business checking account with your credit union or bank or there may be limits on usage and account balances.
• Overdraft protection can be useful when you use your business savings account to cover any overages by your business checking account.
• Your business funds can earn money with an interest bearing savings account.
• CD's and money market savings accounts are offered as another source of generating money with your business savings account.
• Small business loans from credit unions or banks can be an essential element for expansion in the event that you do not have the capital to cover the cost of growing your company.
• Online business banking has opened the door for convenient, 24 hour access to your account including statements, bill payment and the transfer of funds across accounts.

Building Models for Budgeting and Financial Planning in a Recession

Chances are you or someone you know has been hit hard during our current economic recession. Knowing when and how much to spend or save can seem daunting when faced with the present economic crisis. There are ways of building your own financial models for budgeting and financial planning so that you can deal with the ever present financial obstacles of life while weathering the storm of a recession. Budgeting, strategic financial planning and simple common sense are several ways to start.

• Working Budget - Begin by creating revising a realistic and working budget which outlines your income, dividends and expenses. A budget allows you to examine how much money you make and where it goes and gives you an opportunity to make changes where needed.

• Strategic Financial Planning - Decide where to make adjustments in your budget. Budget variable expenses by cutting back on eating out, buying non-label or generic items and, making local plans rather than vacationing out of town.

• Common Sense - Preparing for the worst may be the best attitude to adopt in our current economic situation. Increasing the amount of money that's put into your savings and building a three to six month emergency savings fund model into your financial budget can help you prepare for unforseen circumstances.

Be ready to make good financial choices for you and your family during this recession with sound judgment, strategic financial planning and realistic obtainable budget. Tough economic times call for tough financial planning and budgeting decisions to be made; let common sense be your compass when building financial models for you and your loved ones.

South Florida Credit Union Raises Money for Children's Cancer Caring Center

Tropical Financial Credit Union announced the next charity event to benefit the Children's Cancer Caring Center (CCCC). The event, "A Night at the Improv," will take place on Thursday, August 20, 2009 at 8:00 PM at the Palm Beach Improv.

Previous CCCC charity events have raised over $20,000 to support children with cancer thanks to donations, raffles and ticket sales. This event will also feature great raffle prizes to encourage attendance and for additional support for cancer. All procedes go to the CCCC to cover costly medical care for children and families affected by cancer.

The CCCC is the only free pediatric oncology treatment center for children with cancer in the Southeastern US. The center covers treatment costs for children from infancy through 20 years of age, or until treatment is complete.

Join us August 20th at the Palm Beach Improv for a night of fun, prizes and comedy for a cause!

Associated Press Economic Stress Index

The Associated Press (AP) has compiled foreclosure, unemployment, and bankruptcy data in order to create a county-by-county index of the impact of the current economic situation across the nation.

The Economic Stress Index map shows a trend of highly populated, urban areas experiencing the worst of the recession and rural, inland areas experiencing a less harsh recession. The indices range from 0 to 100, with 100 being the areas most affected by the recession.

Broward and Miami-Dade Counties both have an Economic Stress Index of over 15 and Palm Beach County follows with an index of almost 14. This is due to high levels of unemployment, foreclosures and bankrupcy across South Florida.