When you are purchasing a house, you are always on the hunt for the lowest mortgage rate. If you are keeping a track of the current mortgage rates, then you might have noticed that the rates never stay the same. So, how do you get the lowest possible mortgage rate? Many people have a misconception that the credit score is the only factor that determines the current mortgage rates in the market. The truth is that there are several other factors that decide the mortgage rate, on the basis of which the lender will give you the loan.
Read on to find out three such major factors that affect the current mortgage rates in the market:

Cash reserves
For those who are unaware of the term, cash reserves represent liquid money saved that is readily available to the individual. Typically, lenders demand that house buyers have a cash reserve that lasts for at least two months. It means that after you seal the deal and buy your new house, you should at least have enough money to pay for the new mortgage payment for at least two months. The mortgage payment includes the principal amount, interest, taxes, and the insurance amount. Cash reserve can include money in your checking account, savings account, and money market funds; however, it does not include a retirement fund because that you can liquidate only after you retire.

Down payment
What many people do not know is that the down payment amount you pay at the time of your house purchase majorly affects your mortgage rate. If you want the best mortgage rate, then try to at least pay a 20% of the total price of the house as the down payment. The mortgage rates are based on the risk factors, so if you pay more the risk reduces, and the lender won’t hesitate to give you a lower mortgage rate.

Employment
It is observed that if you have had a stable job in the past two years at the time you apply for a mortgage, there is a high chance that your lender will be convinced to give you a lower mortgage rate. Along with a stable job, make sure that every time you change your job, you pick a new one that pays you better than the previous one. In this way, your income graph goes up, showing that you are capable of paying off your loan.

Just make sure that you have done a thorough research and have all these factors under control before you go ahead with the best mortgage quote.

A bundled investment product made up of other incest products like bonds and stocks are known as mutual funds. Buying shares in the form of individual stocks and bonds are not as good as buying shares in mutual funds. In mutual funds, the investment in stock is diversified more easily. Below are the three best mutual funds:

T. Rowe Price Instl Large Cap Core Gr Fd
The investment seeks to provide long-term capital growth by investing in common stocks of large-cap growth companies. A growth-oriented approach is followed while selecting stocks and normally, the investment in stock is divided between 100 to 130 companies. The fund normally is known to invest at least 80 % of its net assets in large-cap companies. The fund has provided good returns in the past year, and overall has provided 12.97% over the past decade. The fees of this fund are below average compared to other funds of this category. Whereas, the fund is a high-risk fund compared to other funds of the category.

Fidelity Blue Chip Growth Fund
The Fidelity Blue Chip Growth Fund is expected to grow at an above-average pace and is the fund that invests in large-cap U.S. stocks. The fund offers good long-term profit with volatility. Majority of the fund is mostly allocated to technology. Around 39% of the source of the fund has an elevated risk profile. On March 27, 2018, the asset was allocated to the fund amounts to $24.70 billion in 463 different holdings. A core large-cap holding is served by the fund. The Fidelity Blue Chip Growth Fund has an expense ratio of 0.69%. Any investment in stocks can have both market and individual security risk. There is no guarantee that the fund strategy will pan out or that the shareholders will not lose the money that has been invested.

Harbor Capital Appreciation Fund
The Harbor Capital Appreciation Fund is focused on the blue chips as well. The fund’s asset allocation is almost $30.74 billion, which is invested in 54 different holdings. The fund’s major portfolio consists of primary shares of large companies. Apple and Amazon are usually the part of the fund’s portfolio. The fund also has interests in blue-chip companies that have a strong brand-name appeal. One will also find other big names like Google, IBM, Nike, Target, and such popular brands. The companies aim to invest their funds in stocks that have characteristics like superior sales, improving sales momentum, high levels of unit growth, improving profitability, strong balance, superior absolute and relative earnings growth. The fund has an expense ratio of 0.65%. Like most funds, this fund also has its own risks.

When it comes to investing in mutual funds, it is always smart to learn the fundamentals of choosing the best funds and focusing on building the portfolio for a long term. From starting the financial process, the selection and analyzing the portfolio, and taxation is needed to be known before investing. Below are five useful tips for investment in mutual funds:

Investment based on goals
To understand the objectives of the mutual funds, one must read all the scheme related documents. The objectives should align with the goals of investment. Also, the historical performance and the time horizon must be considered. Ensure that the scheme you invest in is a scheme that is likely to offer the best return in the specified time you aim for. Usually, equity mutual funds can be used for attaining the goals that are within 5 years.

Diversify your investments
In the longer run, small investments that are regular have proven to show better returns. One can invest in a Systematic Investment Plan (SIP), which enables one to invest monthly into mutual funds. This monthly investment plan helps in averaging the cost. One can also add more amount if one wants to surplus the investment.

Risk tolerance
One needs to know how much amount they can afford to risk before choosing the funds. Risk tolerance is based on the fluctuations (ups and downs) and the market risk one can handle. People who can tolerate risk should prefer high risk – high return funds. Whereas, the ones who can not handle extreme market fluctuations should go for low-risk investments that have low returns as well.

Determine the asset allocation
Risk tolerance helps to determine how the assets are needed to be allocated. Usually, a portfolio is a mix of investment assets that are stocks, cash, and bonds. A proper asset allocation ensures that one’s portfolio consists of funds that align with the risk tolerance and ensures that the investment is based on the financial goals of the person.

Know the basic types and categories of mutual funds
Mutual funds are organized into categories by asset classes that are stocks, bonds, and cash. They can be further categorized by objective, strategy, and style. Know how mutual funds are categorized as it will help one to choose the best funds for asset allocation as well as to diversify the investments. Like mutual funds, there are stock mutual funds, bond mutual funds, and money market mutual funds.

Home Affordable Refinance Program (HARP) is a mortgage-refinancing program offered to homeowners by the Federal Housing Agency. It is specifically offered to homeowners who have homes that are worth less than the outstanding balance on the home loan. It was created in 2009 to deal with the housing downturn.

This refinancing program is beneficial for those homeowners who are struggling to pay a mortgage due to their unexpected financial hardships. An applicant should consider refinancing their loan through HARP only if they have a good payment history that did not incur any extra interest due to overdue payments and if they owe more than what their house is worth.

Some advantages of refinancing your home loan through HARP are mentioned below:

• HARP lowers the mortgage rate incurred against a home loan
• It helps in shortening the loan term
• You can also transfer it to an adjustable-rate mortgage in a fixed-rate loan to reduce the mortgage rate and shorten the loan term
• HARP also helps in bundling closing costs into a new home loan
• You have to do minimum paperwork when compared with a traditional refinancing option. This makes the application process easier and smoother
• There is no minimum score required to qualify for a HARP loan
• You also don’t require to get an appraisal or have a loan underwriting from your previous lender, making refinancing process easier and faster
• It does not have underwater limits, which increases your chances of getting your loan refinanced through HARP

Following are the eligibility requirements to qualify for HARP:

• The applicant should be on the current mortgage and should not have more than one instance of late payment in an entire year
• The home that the applicant is applying to refinance through HARP should be their primary residence, a single-unit second home or an investment property
• The previous loan that the applicant is planning to refinance should be owned by Freddie Mac or Fannie Mae. It should be originated on or before May 31, 2009
• The current loan-to-value (LTV) ratio must be greater than 80 percent, which is the lending risk assessment ratio used by financial institutions and lenders before they can approve a mortgage

There are tools to calculate your LTV and refinancing options through HARP’s loan look-up tools available on their official website.

Although you cannot enroll in refinancing your home loan through HARP more than once, they have rehashed their eligibility criteria, which might increase your chances to get a refinancing program through the same.

If your home has a little equity, or if you owe more mortgage than your what home is worth, then it can be difficult for you to find a lender to refinance. HARP can be a one-stop solution for borrowers who have never made late payments against their mortgages and have loans owned by Freddie Mac and Fannie.

Home Affordable Refinance Program (HARP) was introduced in 2009 by the Federal Housing Finance Agency as a part of making homeownership affordable. It was introduced in 2009, and it enables borrowers with little or no equity to refinance into mortgages that are more affordable and do not require additional mortgage insurance.

HARP specifically targets borrowers who have a loan-to-value ratio that is less than or equal to 80 percent, and those who have limited or no delinquencies over a period of the year prior to refinancing. There are significant changes made to the program since it was first introduced. The requirements for property appraisal were waived under certain circumstances and risk fees for borrowers who selected shorter amortization, i.e., spreading payments over multiple periods, were eliminated.

Without requiring a minimum credit score, HARP lets you acquire mortgages with very low interest rates and change from adjustable to fixed-rate mortgages.

Once you qualify to refinance your home loan through HARP, you will go through a series of applications approval and closing process on your current mortgage. Outlined below are steps that will help you determine if the refinance program meets your specific needs. Here are steps to get started.

Step 1
Gather all your financial information such as mortgage statements such as second mortgage and your income details.

Step 2
Once you have gathered all your financial documentation, contact your mortgage company to check whether they have an approved HARP lender. Your lender might already have your loan file since you are their current customer. However, you might be asked to provide necessary information to verify the current source of income.

Once you have gathered all the information from your mortgage company, contact a HARP lender. You will find a list of approved HARP lenders on the official website. These lenders will help you determine if you are eligible for HARP.

Step 3
Once you have been approved, go through the application and closing process.

If a lender says you are not eligible for a refinance, contact a HARP specialist to find other ways that can make you eligible for a HARP refinance program.

Shopping for the right senior life insurance can be a daunting process. This is because, at the moment, there are many providers offering worthwhile coverage policies. However, before settling on an insurance company, you should first figure out which type of senior life insurance is best for you and your loved ones. Continue reading to know which are common coverage plans you can consider investing in.

Term insurance
As the name suggests, term insurance offers benefit for a certain time frame. The age limits for every insurance provider’s plan varies. Usually, the age limits and corresponding terms are as follows.

55 to 64 years old: 30-year term

65 to 69 years old: 25-year term

70 to 74 years old: 20-year term

75 to 79 years old: 15-year term

80 years old and above: 10-year term

It is important to note that the proposed term insurance premiums will increase according to one’s age. Likewise, the installments will be expensive, if the senior has some chronic health conditions. If the provider senses that senior’s medical issues might have severe circumstances in the near future, then they might even disapprove their application. The term life insurance with no health assessment might be comparatively costlier than the ones with medical underwriting.

Whole insurance
Also known as permanent life insurance, this type of policy offers a death benefit for the rest of the insured’s life and at the same time, accumulates a cash value. The whole life insurance stays valid as long as the senior pays the premiums on time. The good part is that the premium amount stays uniform for the entire policy’s life. However, as compared to term plans, the premiums for permanent coverage are relatively pricey.

Guaranteed universal
Guaranteed universal life insurance draws a few features from both, term and whole plans. They are more affordable than permanent life insurance. The length of such coverage can be chosen by the senior. However, in most cases, it outlives the senior’s lifetime. It is mostly used for funding end of life costs, offering an inheritance to the beneficiaries, and diminishing estate taxes.

Universal
This type of senior life insurance lasts a lifetime and has a cash value attached to it. The cash value is directly influenced by factors such as policy’s investment performance and the ability to take loans against it. Since the insurance directly involves the unpredictability of its investments, earnings are not assured. Likewise, the senior might have to increase the premium payments to sustain the policy’s performance.

Final expense insurance
As the name implies, the final expense insurance ensures funds for paying off medical bills and burial expenses. This permanent senior life insurance lasts a lifetime, and usually provides a coverage ranging between $50,000 and $100,000. This type of senior life insurance can help develop a cash value, i.e., you can access the money during the life of the plan.

Due to increased life expectancy, it has become essential for seniors to get a life insurance plan. According to the Social Security Administration, the average lifespan of women and men is 87 and 84 respectively, which clearly demonstrates the need for prolonged financial protection. However, a life insurance not just safeguards a senior’s financial interests but also secures the future of their loved ones. Read further to know how a good senior life insurance plan can help in preparing for unexpected events in the long run.

Financial support
Retiring from work is a gateway to the golden years. However, it doesn’t change the fact that there are still bills to pay, which can be managed with your pension, savings, or another income source. However, the income after retirement might not be enough to handle your rising needs. So, having a good senior life insurance at your disposal will keep your free from anxieties if any emergencies were to arise.

Medical and funeral costs
The healthcare facilities are only becoming pricier with every passing day which is causing a lot of strain on families and increasing the debts. Having a life insurance policy as a backup will help deal with any major medical cost. Like healthcare, funeral expenses are expected to skyrocket in the next few years. Currently, the average funeral expense is around $11,000, excluding food for guests and obituary flowers. Again, this can increase the monetary pressure on loved ones, ultimately leading to more liability. A senior life insurance policy ensures that the beneficiaries don’t have to struggle financially during such emotionally challenging period.

Debt
Numerous adults aren’t able to pay off their debt even after retiring. This could be a mortgage or a home or student loan for their children. Furthermore, having any big-ticket expenses such as hospital expenses be more distressing. In the event of a demise, your family might be responsible for paying off these debts. Therefore, having a senior life insurance is a strong backup to avoid any inconvenience for you and your family.

Protection against estate taxes
Seniors with large or multiple estates can consider getting a life insurance to transfer a considerable amount of wealth to their children. The estate tax will be calculated on the basis of the net worth of the senior and the property. This means the higher the net worth the higher will be the tax liability, i.e., the inheritance tax that has to be borne by the children.

If you are planning to get senior life insurance soon, you can consider signing up for a plan offered by popular companies such as New York Life, American National, Banner Life, Mutual of Omaha, Transamerica, Fidelity Life, and Northwestern Mutual.