Debt
Free Article
The
least you need to know
This
debt free article will cover the least you need to know
about leasing and mortgages. You will find the to the point
format here to be of special use for quick reading. If you
need any additional info on these debt free subjects
concerning you and your finances, be sure to visit our debt
free article section - the link is at the bottom of this
page.
Leasing
·
Always
negotiate on a leasing deal the same way you would if you
were buying a car. Push the dealer to the limit – it is your
hard earned money we are talking about. So many consumers
except what is offered and drive off.
·
Remember, you are on the salesman’s turf. Go prepared and do
your homework before you waltz up to the lot – ever. You
need to be asking the questions, not the sales person. Never
let ‘em see you sweat (we just had to add that).
·
Just
say no to vehicle undercoating, credit life insurance,
extended warranties, and other unnecessary charges and
add-ons.
·
Get
the deal on your trade in done first before you start
discussing a deal on a new car (lease). Then get the
dealer’s discounted price before you start negotiating.
·
Whether you are trading in your old car or selling yourself,
spend a few bucks to get the vehicle into tip top condition.
Take care of dents and such. DO not show any emotion when
you inspect a new car, and do not close the deal the same
day you visit the dealer’s lot. Let them call you back and
negotiate a better price. Even mention checking out the
competitor across town.
·
Get
pre approved before you go to the lot. Bring your own
financing (check a credit union even) before you go. DO not
accept dealer financing – they are in some sort of kick back
deal with the banks they provide no doubt. This will give
you better bargaining on rebates too. Take the rebate
instead of dealer (Seemingly low) loan rates if you bring
your own pre approved credit with you.
·
Sticker prices are more complex that they appear. It does
not ell the whole story. The dealer gets a special holdback
money deal and incentives from the manufacturer they will
never tell you about. How do you think they pay for that
lousy coffee in the service department waiting area?
(couldn’t resist)
·
Get a
simple interest loan, paying a higher down payment, and
taking advantage of rebates are great ways to save on
finance costs.
·
Leasing a car is not as simple as your dealer may lead you
to believe it is, Get the details and read all the fine
print. Leases are notorious for stipulations such as mileage
limits and maintenance. Be sure you know what the specific
are before you sign anything.
Mortgages
·
The
two major types of mortgages are fixed rate and adjustable
rate (ARM).
·
A
fixed rate mortgage is best when interest rates are low, so
you can lock up that rate for the full life of the loan.
ARMs are usually a better deal if you do not have extra
money to cover a big down payment and high closing costs, or
if you only plan to stay in the house for less than 4 years.
·
There
are government baked mortgage programs fro first time home
buyers and others with low incomes, for as little as 3%
down.
·
The
easy way to shop for the best mortgage is t o ask a handful
of different lenders for the total dollar costs of their
upfront charges, finance cost over the first 5 years, and
closing costs including points. Then add those 3 numbers for
each lender to see who offers the best deal.
·
The
Annual Percentage Rate (APR) is a good way to compare
mortgage deals, apple to apples, because it includes fees
and charges in addition to the rate.
·
You
can really negotiate better rates and fees with many
lende3rs. You may also be able to hammer out a better deal
at the bank, thrift, or credit union you already bank with.
·
Always
make certain that your credit is in order at least 6 months
before you apply fro any home loan.
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