Welcome to Mortgage Guide and Tips
Mortgage Refinancing In California Article
. You may Bookmark this article or link to it permanently - ,click here.
Payday Loan
********“I just need enough cash to tide me over until payday.” Sounds familiar to you? I’m betting it does. We constantly find ads to this effect on the radio, television, the Internet, and even in the mail. The type of loan being referred to, of course, is payday loans. And they come at a very high price, too, by the way.
Payday loans have become a way for people to get fast cash. Check cashers, finance companies and others are making small, short-term, high-rate payday loans that go by a variety of names. Sometimes, they’re called cash advance loans, check advance loans, post-dated check loans or deferred deposit check loans.
But how do payday loans work? Well, usually, a borrower writes a personal check payable to the lender for the amount he or she wishes to borrow plus a fee. Afterwards, the company or the lending institution would then give the borrower the amount of money in the check minus the fee. The fees charged for payday loans are usually a percentage of the face value of the check. Sometimes, the fee may be charged per amount borrowed. For instance, for every $100 loan you borrow, you get charged a fee of $50. If the loan is extended, a process referred to as “roll-over”, you are obliged to pay the additional fees that could incur. So for example, you make an extension of two weeks for your $100 loan. That means, you pay a total of $150 in fees, provided that one week equals to a $50 fee.
The Paperwork
Under the Truth in Lending Act, the cost of payday loans, like other types of credit, must be disclosed to the borrower. Other pieces of relevant information that you must receive in writing include the finance charge or the dollar amount and the annual percentage rate or APR. The APR refers to the cost of credit on a yearly basis.
Fast Cash, High Rates
A payday loan, which is a cash advance loan secured by a personal check, is a very expensive source of credit. But despite this, many people still opt for payday loans. To explain to you just how expensive payday loans can be, let’s say that you need to borrow $100 and so you write a check for $115 which would pay your loan for up to 14 days. The check casher or payday lender agrees to hold the check until your next payday. At that time, depending on the particular plan, the lender deposits the check. You then redeem the check by paying the $115 in cash. If you can’t make the payment, you can also roll-over the check by paying a fee to extend the loan for another two weeks. In this example, the lender charges you $15 as fee and at the same time, the loan costs you 391 percent APR. If you roll-over the loan three times, the finance charge would climb to $60 to borrow $100.
TOTAL WORD COUNT - 496
KEYWORDS "Payday Loan" = 10 (density = 2.0%)
Mortgage Refinancing In California Specific links
Mortgage Refinancing In California News
Analysis: Banks largely reserved for U.S. mortgage pact cost
(Reuters) - As the nation's five largest mortgage lenders edge close to a $25 billion settlement over foreclosure abuses, it's becoming clear that the deal will have little or no impact on their future bottom lines. After more than a year of negotiations, the banks already have set aside money to cover legal costs and have built up their reserves to cover losses from reducing how much borrowers ...
Read more...Eyes on dissident states as mortgage deal nears
(Reuters) - A broad settlement with major banks over mortgage servicing abuses that would bring relief to distressed U.S. homeowners could be announced as early Thursday, two people familiar with the matter said. Negotiators said a federal-state mortgage servicing settlement already has the backing of over 40 states but so far lacks the support of a handful of critical states, including ...
Read more...Calif., N.Y. Among Mortgage Deal Holdouts
California and New York’s attorneys general haven’t signed on to a proposed settlement with five banks over foreclosure practices that has won the support of more than 40 states.
Read more...Delaware officials wrestle over mortgage deal
(Reuters) - Delaware stands to leave up to $40 million in homeowner relief on the table, if it does not join a multi-state mortgage settlement, according to a letter from the state's banking commissioner seen by Reuters on Tuesday. In a sign of internal strife as holdout states decide whether to join the settlement, Delaware banking commissioner has come out in support of the deal, while the ...
Read more...Analysis: Banks Prepared for Cost of U.S. Mortgage Pact
As the nation's five largest mortgage lenders edge close to a $25 billion settlement over foreclosure abuses, it's becoming clear that the deal will have little or no impact on their future bottom lines.
Read more...Calif., NY Among Mortgage Deal Holdouts
California, New York, Nevada, Florida and Massachusetts are among the handful of states that haven’t signed a deal with banks over foreclosure abuses, according to state officials and two people familiar with the talks.
Read more...Banks largely reserved for U.S. mortgage pact cost
As the nation's five largest mortgage lenders edge close to a $25 billion settlement over foreclosure abuses, it's becoming clear that the deal will have little or no impact on their future bottom lines.
Read more...