VA Loans: Eligibility Requirements and Essential Features

What are VA Loans? VA Loans are government backed mortgage loans made available through approved lenders to United States veterans, service members and their spouses. Approved lenders could be banks, savings and loans or mortgage companies. You should understand that gov Instead, what the government does is to provide guaranty to the approved lenders through the U.S. Department of Veterans Affairs.  The essence of this guaranty is to protect the lenders from loss in case the borrowers are unable to pay back their VA Loans. This reduces the lenders’ risks and therefore makes the interest rates on VA loans to Continue ReadingVA Loans: Eligibility Requirements and Essential Features

How to Trade Stock Futures Profitably

What are Stock Futures? Stock futures are financial contracts, that is, legally binding agreement between two parties, to buy and sell underlying asset (stocks in this case) of specifying quantity in a future date at a price agreed upon between the buyer and the seller.  Once the stock future contract is agreed upon, both the buyer and seller are under obligation to buy or sell the underlying stock at the agreed price. The party that agrees to buy stock futures is said to take a long position. While the other party that agrees to sell the stock futures is said Continue ReadingHow to Trade Stock Futures Profitably

Dividend related terms all investors should know

What is a dividend? Dividend is the payment that a company makes to shareholders as part of their rewards for holding shares in the company.  This payment is usually made from the earnings of a company in a particular period. However, dividend is dependent on a company’s earnings. This means that a company may choose not to pay dividends in a particular year if its performance is not impressive. However, there is a class of stocks that entitle its holder a guaranteed dividends every year. This type of stocks is called preferred stocks. Preferred shareholders enjoy fixed income every year. Continue ReadingDividend related terms all investors should know