Refinance

Refinancing is done by applying for a secure loan to replace an existing loan secured by the same assets. Home Mortgage is the most common type of refinance by consumers.Refinance offers various advantages like reducing interest costs. The new finance rate could be at a much lower rate. It also helps to pay ff debts, reduces the risk factor and also helps in liquidating the equity that has accumulated during the tenure of ownership.

Extensions to loans can also be done through refinancing and helps in spreading the r-payment over much longer time. Risk associated with an existing loan can be reduced by refinancing.Few risks associated with refinance could be higher interest costs over the life of the loan.Refinancing should be done only if there is a chance to save substantial amount of money.

Home Equity Loan

In a Home Equity Loan, the collateral for the loan is the Borrower\'s House\'s Equity. There are two types of home equity loans, Closed End Type and Open End Type.In a closed end home equity loan, the borrower receives a lump sum at the time of closing and cannot borrow further. This maximum amount depends on various factors like credit history, income, appraised value of collateral etc.

Also known as the Home Equity Line of Credit, the Open End Home Equity loan is a revolving credit loan. It allows the borrower to chose when and how often to borrow.Most borrowers use this kind of a loan for home repairs, college education and aso to pay up their medical bills. Home equity loans require a good to excellent credit history for approval.Costs associated with this loan include Appraisal fees, closing fees, originator fees, title fees, , arrangement fees, stamp duties, early pay-off and other costs.

Debt Consolidation

Have lots of loans to repay? Then this is for you. The borrower can take a loan to pay off many other loans. Advantages of taking such a loan could vary from securing a lower interest rate, securing a fixed interest rate or repaying a single loan rather than multiple loans.Debt consolidation loan often requires an asset to serve as a collateral usually a house. This would help in lowering the interest rate as the risk to the lender is lowered. Debt Consolidation is often advantageous when the borrower is paying up his/her credit card debt. Higher interest rates from credit cards can be avoided though a secured loan using their asset as a collateral.

Mortgage

Mortgage is a special loan which involves using personal or real property of the borrower as a security for the payment of a debt. Its also referred to as Mortgage Loan.The most common mortgage loans are associated with loans secured on real estate. Thus purchasing real estate ( residential or commercial) by the borrower is possible without paying the whole amount immediately. Important terminology of mortgage are as follows:

Freehold:The ownership of a property and the land.

Leasehold: The ownership of the property and land for a specified period, which may be sold separately from freehold, which may be owned by another person.

Mortgage Deed: A legal document that stated that the lender has a legal charge over the property.

Credit Card

The most popular system of payment is credit card.Unlike debit card, it does not involve removing money from the user\'s account after every transaction. The issuer of the credit card lends money to the borrower.A prepaid credit card is a special kind of credit card (actually not a credit card) where the card issuer offers no credit to the borrower. Rather the card holder uses his/her prior deposited money. It can be used in similar ways as a credit card. The most common fees associated with a credit card include late fees, overlimit fees, payment processing fees, membership fees, foreign exchange premium, cash advance fees, convenience fees etc.

Payday Loan

Also called as Paycheck advance or Cash advance, a payday loan usually involves a short-term loan and small loan for borrowers urgent needs until their next payday. The most common payday loans vary between $100 and $2000, and are typically 2 weeks in length. The charges for the loans are typically $15 to $30 which is equivalent to 400 to 800 percent. Securing this loan involves visiting a payday lending stores, writing a post-dated check to the lender in the full amount of the loan and the interest plus fees. On the date of maturity, the borrower has to repay to the lender in person. In the event of non-payment, the lender can electronically withdraw the borrowed amount from the borrower\'s checking account.

Types of Pay day loan or Cash Advance are as follows:

Direct Deposit Advance
Online Lending or Internet Lending
Refund Anticipation Loans

Credit Report

Credit Report a comprehensive report of an individual or company\'s history of borrowing and repayment. Credit report is synonymous to credit history. Credit report also includes information about late payments and bankruptcy of the individual or company in the past. The issuer of credit, usually a bank or credit card company forwards the information of the applicant to a credit bureau along with updates on the status, accounts, address and changes since last time when applied for credit. Credit ratings are determined on the factors listed below:

Control of Debt
Payment Record
Credit Cards that are not being used
Re-Aging
Signs of responsibility and Stability
Credit Enquiries

Bank of America

Bank of America is the largest bank in the United States of America. Bank of America has the highest deposits and the largest company of its kind in the world and is the largest American Company. Being the number one market in the domestic market is Bank of America\'\'s core strategy. Domestic markets are the highest revenue spinners for bank of america with a whopping 90% from it.

Bank of America is also a member of the Global ATM Alliance which is a joint venture of several major international banks that allows customers of their banks to use their ATM cars or check card at another bank within the Global ATM Alliance with no fees when traveling internationally. Bank of AMerica includes groups like the Banc of America Investment Services, Bac of America Securities, Leveraged Finance, Syndicated Loans, Mortgage-Backed Securties, Premier Banking & Investments, THe Private Bank, Family Wealth Advisors, Columbia Management Group and Banc of America Specialist.

Wachovia Bank

One of the largest banking chains in the United States of America is the Wachovia Corporation. Wachovia Corporation is based in Charlotte, North Carolina and offers diversified financial services from banking, asset management, wealth management, corporate banking, investment banking and services. It currently operates in 21 states.In 2001, First union corporation merged with the Winston-Salem based Wachovia Corporation. This merger made First Union shed its name and assume the Wachovia identity and stock ticker.

Wachovia features in the Fortune 500 list for 2007 and is ranked at 47. It is the fourth largest bank holding company in the united states.Wachovia\'s asset management division operates as Evergreen Investments in the United States and as Wachovia Global Asset Management abroad.Wachovia Securities and the Prudential Securities Division of Prudential Financial, Inc. combined to form Wachovia Securities LLC on July 1, 2003.