FHA Loan Requirements and How to Apply

FHA Loan provides a good option for low income home buyers who want to obtain mortgage loan but don’t have much money to pay for down payment.  The reason is that, FHA Loan does not only offer low down payment, the loans are insured by the Federal housing Administration. Prospective borrowers should understand that Federal housing Administration does not grant FHA Loans. What it does is to guarantee the payment of the loans made to homeowners through the approved lenders.  In this regard, borrowers will be required to pay Mortgage Insurance premium on their FHA Loan. This is what makes Continue ReadingFHA Loan Requirements and How to Apply

Significance of Debt to Equity Ratio

What is debt to equity ratio? Before I start discussing about the meaning and significance of debt to equity ratio, the best place to start is to define financial ratio. The reason is that, without having a basic knowledge of financial ratios, you may find it difficult to understand what the debt to equity ratio is all about. What is financial ratio? Financial ratios are the tools used in establishing relationship between a company’s financial information for the purpose of comparison. Financial ratios can be used to compare a company’s past performance or with the performance of other companies within Continue ReadingSignificance of Debt to Equity Ratio

Student Loans: What is a Direct Stafford Loan?

Direct Stafford Loan is one of the common student loans available to undergraduate and graduates students in U.S.  Direct Stafford Loan is a federal student loan and it is guaranteed by the U.S government.  Direct Stafford Loans can also be referred to as Direct Loans. The interest rates on the loans are usually fixed and are lower than that of private loans. So, if you are a graduate or undergraduate student seeking for student loans, Direct Stafford Loan can actually be a good option for you as this will help you save some cost on interest payments. Not just because Continue ReadingStudent Loans: What is a Direct Stafford Loan?