Archive for July, 2015

Releasing Equity From Your Second Home

Tuesday, July 21st, 2015

Funds can be released from up to five different properties which can offer you even more financial freedom than ever. If you intend on applying for an equity release against your second home, you should be aware of all of the advantages, disadvantages and prerequisites.

When you are planning on applying for an equity release plan against any additional property, you or one of the applicants will need to fulfil the set age requirements. Additionally, the property may also need to have a certain minimum value. If your property is not of a high enough value, the equity release provider will not be able to offer you any kind of substantial lump sum. In addition, if you are applying against an additional property, you should not be residing in that property.

These are just a handful of the set criteria that homeowners need to fulfil, and if you wish to release equity from multiple properties, each property will need to fulfil these requirements individually. The amount of funds you will be able to release from your second home and any other properties will largely depend on a number of factors. These include, but are not limited to, your age and the value of the property. The greater the value of the property, the larger the amount you can release. Likewise, the older the homeowner, the greater the amount you can release.

If you would like to gain a more informed understanding of the amount of money you will be able to release against your second home, you can use an online equity release calculator. These calculators will give you a very good idea of what to expect before meeting with any professionals. Once you do decide to set up a meeting with an advisor, it is important to meet with an independent financial advisor. In fact, you should meet with more than one in order to gain as much information before signing on the dotted line. Independent financial advisors are best since they do not have any ties to financial institutions that may sway their advice. They will be unbiased and offer neutral advice on various products from various equity release providers. Once you have all of the offers and terms presented to you, you can make the choice that best suits your personal needs.

Reasons to Use a Community Bank

Tuesday, July 21st, 2015

Here are seven advantages of supporting your local bank over a larger entity.

Same Services, Lower Costs

Community banks usually offer the same services that larger ones offer, but at a lower cost. Debit and credit card fees, as well as online bill paying fees, are offered at a lower rate. Small financial institutions on average offer better interest rates on savings.

Local Deposits Stay Local

Megabanks often accept deposits in one state and then lend that money to other states. A community bank loans out their cash to local neighborhoods and communities. This supports other depositors in your area.

Executives Stay Local

With a national entity, you never know where its executives and managers are located. With a community bank, however, you can rest assured knowing that its executives live locally, are easily accessible and are invested in the community.

Productive Investment

Nationwide institutions set aside a substantial part of their resources for speculative trading on Wall Street. This provides a nice return for them but does nothing for their clients or the local economy. Smaller banks don’t rely on such investments, instead choosing to work to turn client deposits into loans.

Personal Qualification Criteria

Larger institutions that lack local roots usually operate on an impersonal qualification criterium when determining a candidate for a loan. Conversely, community banks are open to taking into account family history and personal character when deciding upon a loan. Individual circumstances actually matter to local banks and they’ll spend time to consider them.

Shorter Wait Times

Looking to receive swift acceptance for a new loan request? Community banks should work in your favor. Since all executives and employees are located locally, they are able to make such decisions with haste. Megabanks are slowed down by their loan approval committees, which are scattered across multiple states.

Small Businesses Understand Small Businesses

Sounds simple, right? Smaller banks and credit unions are themselves small businesses, and as such relate to and understand small businesses. Large banks are under the thumb of corporate America and don’t operate as small businesses themselves. They operate the same way mega corporations operate, paying their CEOs millions of dollars, shutting down branches when money gets tight, and working their employees long, strenuous hours. This leaves a void in their understanding of small businesses and the people associated with them.