Category Archives: Home Mortgage
Cash Advance Loan in Australia
Taking out a cash advance loan has never been easier in Australia today. With the market having countless cash advance lenders, they are all competing for the custom of people in need of quick cash. Perhaps the easiest way to take out a cash advance loan today is through the Internet. What exactly is a cash advance? Though this term is used a lot in relation to credit card transactions wherein you get cash through your card, for the purposes of this article, cash advance is used to refer to a short term cash loan without the use of a credit card.
As a short term cash loan, a cash advance needs to be paid in a few weeks, usually 2 to 3 weeks. This term can be extended depending on the cash advance loan provider. However, extensions would incur more fees.
Applying for a cash advance has been made easy by electronic transactions. Anyone can apply from a computer terminal connected to the Internet. In general, you would not be asked for any documentation but you may have to fax copies of your latest pay slip stub and bank statements. This is only for verification purposes and is usually asked for after the cash advance is approved.
How much can be borrowed using a cash advance loan? It really depends from lender to lender but in general, you can borrow any amount from $100 to $1500 in any city in Australia. The requirements for a cash advance are quite simple. One has to be a citizen or a resident of Australia, at least 18 years of age, and has proof of a stable job or regular source of income. More so, one has to have an active bank account in good standing.
Another advantage of a cash advance is that it normally does not require the borrower to undergo a credit check. As such, if you have bad credit, you do not have to worry about being approved for a cash advance. This is because your next paycheck is used as security against your loan. That is why it is of utmost importance that you can show proof of your regular income when applying for a cash advance.
As with any loan, however, you have to pay back a cash advance at the agreed time. When taking out a cash advance, bear in mind that you should be able to afford to pay it off in a short amount of time.
Basics of Loan Amortization Tables
One of the most important and costly investments people make in their life times is the purchase of a home. The decision to take out a home mortgage is a huge one; and its extremely important that people figure out which type of mortgage is the best type for their unique situation, and make sure they have calculated the amount of mortgage they can actually afford. Its necessary also, to fully understand the rate of interest that you are paying and how it is calculated, as it will affect the amount of money you are borrowing immensely. There are a number of ways that interest rates are calculated, but most banks calculate the interest according to what is known as a loan amortization table.
Amortization is a fancy word that basically describes the number of years it will take to repay the loan completely, with interest.
There are three types of loan amortization tables that are used most frequently, including:
Equal Capital In this type of amortization table, the calculation system will display each of the equal monthly payments as well as the total variable payment that is made to the bank. The amount of the repayments decrease as the term of the loan gets closer to the expiration date.
Spitzer Amortization Table In this type of amortization table, the repayments are often considered the most optimal. A Spitzer loan provides a fixed monthly payment, even with a variable rate of interest that may adjust throughout the repayment period. Unfortunately, however, many people mistakenly believe that most of the interest is paid within the first year of making repayments on this loan, but that is not the case.
Bolit Amortization Table In this type of amortization table, the payments that are made pay the interest on the loan, and the principal amount of the loan is only paid after a specified period of time. So the beginning payments are interest only.
As with any investment tool, there are numerous risks associated with loan amortization tables, including:
Linking risk
Rising consumer price index
Rising prime risk
Exchange rate
Fluctuating interest rate risk
If you are able to define the type of risk involved with the various amortization tables, then you can have a better understanding of how to best neutralize the risk .