Asset Advice

As you may have noticed a couple of days ago, we added some great advice about personal assets and how to get the best out every dollar you earn. If not, be sure to check the main article page to see more advice on assets should you need to.

In this article, there are a few pages and you will find asset advice on many topics such as buying cars, homes and more.

When it comes time for you to purchase a new automobile, consider how dealers make their money. Dealers make money from the manufacturer that not even the car salesmen know about. One way they do it is by a dealer holdback that does not appear on the car’s invoice at all. It could be 2-3% of the MSRP. Meaning, if the car you are looking to buy is $17,000, the dealer would get somewhere near $510 back from the vehicle’s manufacturer. There could even be dealer incentives (and there usually are these types of kickbacks) from the manufacturer that do not go through the car sales personnel either. In order for you to negotiate aggressively on these types of hidden dealer earnings is to head straight to the sales manager or another manager in the dealership.

By negotiating the lowest possible interest rate on a new car and sell your old car on your own, you will probably come out farther ahead. Think about selling your used car through inexpensive ads rather than selling it back to the dealer who will give you less money for it. If a dealer does give you a high value for the car you can count on the difference being tacked on to your new loan – that is a horrible mistake and you never what to do this. Assets remember?

When it comes to shopping a home loan, always compare APRs (with the points included) when you are looking around. This way, you are comparing the total costs of mortgages that provide the same interest rate.

Also when it comes to home loans, one index may change more often or more slowly than another index, and that can affect how long it takes the lender to change your ARM rate and your monthly payment.

The longer you plan to stay in your home, the more you should pay points in exchange for a lower interest rate. If you can afford a higher rate with higher monthly payments, some lenders may offer you a no-points deal.

When you are seeking a good home loan, always remember to ask lenders for their APRs on fixed rate loans versus ARMs – then compare those two considerations with other lender’s APRs in the area.

Doing business at a bank where you have a checking account or another loan can be an advantage. This is because you could be able to apply at the same branch where people already know you. Also, you have the other accounts; the bank may recognize this and discount your mortgage rate. A quarter of a percent really makes a difference when it comes to home loans – take any discount you can. This most often happens when you agree to have the mortgage payment taken directly from your checking account automatically each month.

The way the math works out, the higher the interest rate, the greater the amount of your early payments that go toward interest. Conversely, the lower the interest rate, the less the amount of your early payments that go towards your interest. Take a look at your current monthly mortgage statements.

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