Affording the Down Payment and Other Housing Costs

You’ve found a home you’re interested in purchasing and have already been approved for a low-interest mortgage. The only problem is, you’re not sure you’re going to be able to come up with the down payment and other associated costs of closing on a home. The down payment, housing inspection fees, lawyer fees, and other closing costs can run you several thousand dollars, which is what stops many from trying to own a home in the first place.

You’ve done all the legwork to purchase a home. You’ve cleared up your credit, found a realtor, searched various properties, and secured a preapproval for a mortgage. Why let something like closing costs and the down payment on the property to deter you from purchasing the home of your dreams? Instead, consider some of these ideas to secure the cash to purchase your home.

  1. Short Term Loan

Short-term loans are an easy solution to cover some of the associated costs of buying a home. Easy installment loans, for instance, only require that you have a job, a checking account, and be at least 18 years old. You can get approved for several hundred dollars which can be paid back in easy installments to prevent you from breaking the bank.

  1. Ask About Programs

There are government assisted programs for interested home buyers that may be able to help you with the out of pocket expenses of owning a home. Down payment assistance and even assistance with closing costs are offered to qualifying individuals. Many of these programs offer financial assistance and only require you to stay in the home for a given period of time rather than repay the funds.

  1. Borrow From Your Pension

If you’re fortunate enough to have a pension or retirement account, you could easily borrow funds from the account. While the repayment will come with interest and additional fees, it does provide you with enough time to pay it back. Be sure to talk this over with your employer or retirement account provider to be sure that you’re aware of all the associated costs of borrowing from your account.

  1. Sell Your Belongings

Since you’ll be moving pretty soon anyway, why not go ahead and get rid of some of your old belongings. Things of value that you no longer want can be sold for extra cash. A quick estate sell would work nice, but you can also try other options like selling the products on eBay to the highest bidder.

  1. Ask Family & Friends

If you can’t allocate the funds on your own but you really want the place, consider asking your friends and family for a little assistance. Whether they donate $5 or $500, it will go a long way in helping you to cover those additional costs. You’d be surprised how far a few small donations can go towards your dream. If you don’t have family and friends to ask, go social and consider a GoFundMe account where internet users can donate to your cause.

  1. Get a Side Hustle

If all else fails, you can take on a side job and earn the additional funds for your home. Whether it’s babysitting a few nights per week, helping people with their taxes, or a full-on internet business such as virtual assistance or blog writing, you can take all of your earnings and apply them to the house.

It’s true, the initial costs of buying a home can be a lot for the average person. While you should take caution in purchasing a property if you can’t afford it or are in debt, if the only hurdle you’re dealing with is the down payment and associated closing costs, there may be a quick solution such as those described above to help you secure your home.

Momentum Day Trading Strategies: Entry Strategy

In today’s blog post we are going to focus on developing an entry strategy into your day trading toolbox. A good entry strategy is important because when and where you enter on a stock can have a huge influence on your bottom line. As you have probably already figured out by now, some securities are better candidates than others for day trading. That is because a day trader should be looking for two things when looking for a good stock for day trading and that is liquidity and volatility.

Liquidity

Stock liquidity is how easy it is to buy and sell a stock without seeing a change in the price. Good liquidity will allow you to enter and then exit a stock at an advantageous price. For example, if you buy stock “A” at $20 a share and can sell it immediately for the same price, the market is perfectly liquid for that stock. If you cannot sell that stock at all, it would be perfectly illiquid. These examples happen very, very seldom. More often than not the market for a stock is somewhere between the two extremes.

Volatility

Stock volatility is the measurement of the expected daily price range. This range is the area in which the day trader has to learn to operate to make a profit. Successful day trading requires you to get comfortable operating in this range. The higher the daily volatility for a stock, the higher the potential for profit or loss.

Now, that you have learned how to evaluate a stock’s liquidity and volatility, you need to find your entry point. All momentum day trading strategies need to include a good entry point strategy. Intraday candlestick pattern’s and charts are a great way to find an appropriate entry point.

Intraday Candlestick Pattern

A candlestick chart shows a stock’s price at opening for that day, its intraday high price, its intraday low price, and its closing price all on one graph. At first glance the chart my look confusing, but it is an essential tool to learn for day trading. Learning how to read a candlestick chart will help you find patterns and those patterns will help you identify an entry point.

Real-Time News

Everyone who day trades, knows that news makes stocks move. You can make all the intraday candlestick patterns in the world but if you do not have a good, reliable, real time news source you could get caught behind the bell curve. Twitter is a great way to get up to the minute news information. You can follow all the standard news channels but we also recommend following Warrior Trading. They share great up to the minute news that you are going to want to know about.

Any serious day trader knows that picking the right entry point is one of the most important skills you can develop as a day trader. The good news is there is no secret to it, you just need to learn how to use the information to your advantage. If you would like to learn more day trading strategies head on over to Warrior Trading .They have tons of great strategies and advice for both newbie and advanced day traders. Good luck out there!

Is CFD Trading the Right Style of Trading For You?

Whats Does CFD Trading Involve?

CFD, or Cost for Differance, is a type of trading that involves predicting the behaviour of a base asset over a specific time frame. It’s a derivative trading that enables the trader to gain potential profit through speculation, allowing you to open a contract for difference in price of an asset based on the falling or rising prices of global financial products or markets such as currencies, indices, shares, commodities, and treasuries. What makes CFD trading popular is that it allows the trader to profit regardless of the direction of prices in the financial markets.

A CFD contract is normally between a trader and broker and derives its value from the difference between the value of the underlying asset when it was purchased (or sold) and when it is sold (or bought). A trader can either go long (buy) or go short (sell). If a trader decides to go short on a CFD for 50 shares to the value of $500 ($10 per share), they would be selling that pair with a view to buying them back after the CFD has ended in their favour. So, the trader has predicted that the price will drop by the end of the CFD contract period. If they’re correct and they drop to $8, the trader will be ‘in the money’ by $2 x 50 = $100. This is because they will virtually buy back the shares for the lower price which is when they realise the profit value. In short, with CFDs the profit is in the difference, as demonstrated in the above example. Whichever way the trader predicts, the profit or losses are proportional to the difference.

Leverage and Margin

A CFD is what is known as a derivative financial product because its value is tied to, or derived from, the value of a base asset but not in the actual ownership of that asset. It’s also a leveraged product meaning that only a small margin or deposit (often 5%) is required to place a trade for a much larger amount. Now, in the above example the trader did not have to actually pay the full value of the trade because it is a leveraged product. At 5% the trader would only have had to pay $25 to be exposed to a $500 trade. So they would have profited by $100 plus their original deposit of $25 which equates to $125 for a small £25 outlay. That is the beauty of leverage. But it’s important to take note that there is a potential downside to leverage, which we’ll look at below.

The Dangers of Margin Closeout

The same mechanism that can amplify the financial returns of a small investment can also amplify the losses. What this means is that if the above example went against the trader and the shares increased from $10 to $12, the trader would be at a loss of $2 x 50 = $100 + $25= $125. This example may not seem such an extreme loss until you increase the margin and trade value so that the 5% margin is actually $500. The trade would have been worth $10,000 and the loss $2500! If a trader’s account drops below a predetermined threshold they could face what’s called a ‘Margin Closeout’, where all of the open positions belonging to that account are arbitrarily closed at the current value, regardless of whether that puts them at a profit or a loss. This is done to safeguard the broker and the trader, since losses can be incurred rapidly particularly when there are multiple leveraged products being traded at the same time.

Can I Make Substantial Profits Trading CFDs?

It’s possible to make a decent and even substantial amount of money trading CFDs, but that doesn’t mean it’s for everyone, or that it will yield instant gratification. It’s important to fully understand how CFD trading works before attempting to start live trading to minimise your chances of a loss. Although you only need to invest a deposit, typically 5%, due to it being a leveraged product, as well as potential to make good profit, you can just as easily stand to lose more than your deposit if the trade moves against you. This is something that needs to be taken into careful consideration if thinking about whether CFD trading is right for you. Ask yourself if you have the patience and self control to be able to trade responsibly, and whether you can afford financially to withstand making a loss.

How Do I Know if CFD Trading Is Right For Me?

If you’ve come this far without being put of by the risks then CFD trading could well be right for you. As you’re only required to put forward a small deposit (as we’ve already discussed), this may appeal to those who don’t have don’t have a huge amount to start with. However, due to the high risk factor, I actually wouldn’t recommend CFD trading to someone in this position. CFD trading is best suited to a seasoned trader, who is confident in their abilities to make rational and well placed bets, with the foresight not to bet too high when there is an increased risk of loss. It is not for the flighty or impulsive trader. It would be sensible to use an existing source of savings or income to place bets, increasing the ‘pot’ as you profit, so that you’re never putting your stable income or assets in danger should you make a loss. CFD trading can certainly be a lucrative and rewarding, but it’s important to decipher whether or not you posses the traits to make it successful.

How to Start Trading CFDs Safely

The best way to approach CFD trading is rationally, and with a good understanding of both the positives and the pitfalls. Ensure that you understand the risks involved, and consider whether it’s worth seeking advice prior to starting from an independant financial advisor. Start by betting small, and never invest more than you can afford to lose. As well as this, finding the right online broker is very important when considering a career in CFD trading. Never be swayed by claims of virtually risk-free profit but look closer for a reputable and well established online broker with existing presence in the market place.

5 Things to do When You Pay off a Debt

First off, congratulations; it is a huge accomplishment to pay off a debt.  You feel the weight off of your shoulders and get rid of the feeling that you are continuing to sink deeper into debt.  Now that you have tackled this obstacle it is time to stay disciplined and continue on the path of financial freedom away from debt.  Once your debt is gone there are a few next steps to stay ahead of the game.

Check Your Credit Report & Score

Getting out of debt is a glorious feeling, it’s easy to get caught up in the moment and start spending that discretionary income again. To quash that urge you should first check your credit score to see how much it improved since paying off that debt. If you are unfamiliar with score, you can see what a good score is here http://aaacreditguide.com/credit-scores/what-is-a-good-credit-score/.

Figure Next Financial Steps

The next move is to figure out what your next financial move is.  Is there more you need to pay off, do you need to start setting up a savings account for the extra money, or maybe you need to create a budget to curb spending going forward in order to not repeat previous mistakes.  Whatever you do, make sure saving is high on the list.

Move onto the Next One

If one debt is down, it is time to move onto the next until they are all paid off.  Try the next smallest balance to feel even more accomplishment, or try and tackle the debt with the largest interest rate so you can apply more towards principle and get rid of it.

Stash More Away for Rainy Day

Experts say that you should have between three and six months of living expenses put away in case of a job loss or a large unexpected repair such as your car or home appliance, so if you have not started to save, now is the time.

Save for Next Purchase

The trick to staying out of debt is to not continue to make unnecessary purchases, and to only spend what you can afford, so if there is an upcoming purchase that you want to make, now is the time to start saving, whether it is for a new car, home down payment, or even planning the next family vacation.

 

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