Third parties, such as banks or agencies like Fannie Mae or Freddie Mac, buy home loans and bundle them together in mortgage-backed securities. People who invest in MBS, also known as mortgage pass-throughs, will get returns based on the principal and interest payments from borrowers over the lives of the loans. For instance, the entity that buys a mortgage will receive the interest payments if a buyer takes out a $200,000 home loan with a 30-year fixed rate of 5%....

Joint Accounts The surviving owner or owners will simply continue to own the account when one account owner dies if it’s owned jointly in the names of two or more people and it’s designated as having “rights of survivorship.” Probate won’t be necessary with this type of account, and real property can also be held this way. The surviving owners need only provide the bank or investment company with a death certificate for the deceased owner....

Profit is the reward to business owners for investing. In small companies, it’s paid directly as income. In corporations, it’s often paid in the form of dividends to shareholders. When expenses are higher than revenue, that’s called a “loss.” If a company suffers losses for too long, it goes bankrupt. Types of Profit Businesses use three types of profit to examine different areas of their companies. They are gross profit, operating profit, and net profit....

Basics Most mortgages are 15 or 30 years long; a 40-year mortgage is not that common. However, because the loan is 10 years longer, the monthly payments on a 40-year mortgage are smaller than those on a 30-year loan—and the difference is greater still when compared to a 15-year loan. The smaller payments make these longer loans attractive to buyers who: Want the smallest monthly payments possibleHave cash flow problemsAre trying to stretch to get into a more expensive house...

The Basics The IRS is involved in your retirement planning because you likely have retirement accounts that come with some very attractive tax benefits. If you were to deposit your retirement funds into a regular investment account, you would pay taxes on contributions and annual taxes on all investment gains. Suppose you sold 100 shares of stock and made $1,000. You would pay taxes on that $1,000. It would be the same with any dividends you receive or any other capital gain, but retirement accounts are different....

That said, most employers won’t fire an employee without cause. Most firings are considered termination for cause, which means the employee is fired for a specific reason. 10 Reasons Employees Can Get Fired 1. Damaging Company Property Damaging company property is a fireable offense. Whether intentional or not, if your actions lead to damage of the company’s property or equipment, it could result in the loss of your job....

Thankfully, if you are not happy with your current car insurance, it’s pretty easy to switch to a different provider at any time. However, knowing when the time is right to switch and the best company to switch to can be a bit more challenging. Below are the top reasons you should consider changing policies, as well as some practical steps for doing so. Cost It typically pays to comparison-shop, and it’s no different with car insurance....

Know Your Rights as a Renter The Centers for Disease Control and Prevention (CDC) and the U.S. Department of Health and Human Services issued a federal eviction moratorium in early September 2020. It was then extended through March 31, 2021. The American Rescue Plan, adopted on March 11, 2021, allocated another $30 billion for rent relief but did not extend the deadline. The CDC did that, first through June 30, 2021, then again through July 31, 2021....

Types of Property Managed While a landlord or property manager can manage any type of investment property, there are certain property types that are more common to each. Landlord Single Family Homes-Landlords who own a single family rental property will usually manage the home themselves, as it does not make financial sense to hire an outside manager.Small Multi-families- Rental properties with two to six units are often managed by the landlord as well....

PAYE, which stands for the Pay As You Earn Repayment Plan, was introduced in December 2012 to give federal student loan borrowers an affordable repayment option that capped payments based on income. REPAYE, or Revised Pay As You Earn, was introduced in December 2015 as an alternative to PAYE with similar payments, but some key differences in benefits and requirements. Since payments are basically the same on REPAYE vs. PAYE, which should you choose?...

One exception to this rule, though, is when you quit because you are relocating: In such an instance, many employees choose to include this information in their resignation letter. Why and How to Mention Relocation in a Resignation Letter There are multiple reasons why it is a good idea to tell your employer you are relocating. First, it’s important for your company to know this information in order for them to update your contact information....

Bars and restaurants took the biggest hit of all, another obstacle for an industry already under pressure: Nearly half of the industry’s jobs disappeared during the shutdowns caused by the initial wave of the virus last spring. Payrolls had bounced back some since then, with food and drinking establishments gaining jobs in all but three months since April 2020. But there are still 966,300 fewer jobs at restaurants and bars than there were at the pre-pandemic high in February 2020....

If you invest in bonds, stocks, or other equities, learn about how rising or falling interest rates across the globe can affect prices, and how you can use this knowledge to manage risk. Interest Rates and Equity Prices One way to think about interest rates is simply as the cost of using someone else’s money. Since central banks print money, they can affect these rates by increasing or decreasing the amount that they charge other banks to access money....

The contribution type that works best for you depends on what plans your employer offers, how much you can contribute, and tax rates. Here’s how you can compare the two options. What’s the Difference Between a Roth IRA and a Pre-Tax Contribution Plan? The difference between Roth IRAs and pre-tax contribution plans is not limited to the tax treatment of contributions and withdrawals. For example, a $6,000 contribution to a pre-tax retirement plan is an untaxed contribution and, therefore, it’s tax-deductible....

Find out more about the basic differences between a Roth IRA and a SIMPLE IRA. You’ll learn about the rules for each type of account, who can contribute, and the limits of each plan. Get information to find out whether a Roth IRA or a SIMPLE IRA is a good option for your retirement savings. What’s the Difference Between a Roth IRA and a SIMPLE IRA? Roth IRAs and SIMPLE IRAs are both types of individual retirement arrangements, often referred to as individual retirement accounts, or IRAs....

In many cases, these issues come down to one simple thing: You’re not asking the right questions. The most successful real estate agents know how to ask open-ended questions that give them more insight into their buyers. Let’s look at how they do it. Stop Asking Homebuyers the Same Old Questions Real estate agents all seem to ask the standard questions: How many bedrooms and baths do you need? What’s the minimum square footage you require?...

List Your Necessities A bare-bones budget is going to cover only your necessities. Your necessities include paying your mortgage or rent (shelter), your basic utilities (heat, power, and water) and your food. If you need the Internet to work, you may be able to include it, but if money is really tight you can take advantage of free WiFi at the library or a store. It depends on how serious your situation is....

You could keep the credit card active in case you want to use it again in the future. However, there are also a few good reasons for closing a card once you’ve paid it off. You Want to Downsize Your Credit Cards You may feel that you have too many credit cards and want to minimize the number of accounts you have. Even a credit card with a zero balance has to be monitored regularly to spot any unauthorized charges....

An escalation clause states that the buyer will pay a certain amount of money above the highest offer the seller receives. It generally includes a ceiling cap to make sure the buyer doesn’t agree to pay more than they can afford. Learn more about escalation clauses and how they work. What Is an Escalation Clause? An escalation clause improves the odds that a home buyer will submit the highest offer....

Green Dot president and CEO Dan Henry said he’d like to introduce a layaway plan in 2023 that would allow consumers to save up for purchases and build their credit history at the same time. Green Dot provides financial services such as prepaid debit cards and money processing to consumers and businesses. Layaway is just one idea the company has on its product roadmap, which Henry revealed during a conversation with The Balance about financial inclusion and how Green Dot is trying to meet the needs of unbanked and “credit invisible” consumers....