Forex Trading Beginner's Lesson
Doing research on the Forex market? Perhaps you are even looking for a good Forex course? There are many to choose from. Keep reading for a free basic Forex lesson and then stop by our blog to read the top reviews on all the popular Online Forex programs.
There are two different prices in a Forex market. The bid price and the ask price. In Forex, the prices do not favor you but the broker. This is the way the broker makes his money so the prices are in his favor. The ask price is always higher than the bid price. Unlike the stock market, when you are trading In Forex trading, you generally buy high and sell low to take advantage of trending markets.
If you choose to purchase currency pair in the Forex market, you have to pay the ask price. If, using the example of the GBP/USD you believe the pound is going to strengthen against the dollar, you would then be purchasing the pound at a lower rate and selling the dollar, which is going to weaken. The pound will be the base currency and will control the trade. In Forex, this is called a long position.
The bid price is the price you sell at. Using the GBP/USD example, if you predict that the dollar will come back and eventually become stronger than the pound, you would take a short position and sell the pound and buy the dollar. The base currency will still control the direction of the trade.
Whenever you are buying the cross currency, or the one which is not controlling the trade, the USD in the GBP/USD pair, all signals will reverse. The price of the currency pair will go down, which you would then wanet to sell to make a profit.
You have to decide the number of pips you earn in a short trade as the same as those you would earn in a long trade. Ignore the purchase or sale price and figure the difference between the higher number and the lower one to get your gain.
In Forex, the spread is the difference between the bid price and ask price. This is the amount the Forex broker will take as his commission. The broker makes money on the large volume of trades and not by charging large commissions.
In Forex, spreads can be quite competitively priced. When the spread is small, the trader will have more profit. Keeping the spread smaller helps the brokers to attract more traders. Spreads are usually minor among the widely traded currency pairs, also referred to as the majors.
In Forex, a lot of money can be made...and can be lost. Trading on the Forex market is a learning skill set you should not take lightly. There are many Online Forex programs that can really help you learn.
However, many of these Online Forex programs are over-priced and NOT worth your time or money. Be sure to visit OnlineForexBooks.com for the best Online Forex programs Reviews that we gathered from consumers. Not all Forec courses are the same - be sure to get the best one as rated by consumers.
Saturday, November 15, 2008
Forex Trading Beginner's Lesson
Tuesday, November 11, 2008
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Sunday, November 9, 2008
Loan Modification Vs FHA - Hope For Homeowners Program - Comparative Analysis!
Current Housing Market Status:
In the last 3 or 4 years, a large number of homeowners have been trying to complete a "loan workout" with their current mortgage lender to lower the interest rate and improve the terms of their loan. Many lenders have chosen not to accept any new terms, rather, let the property go into foreclosure.
Because lenders have an overwhelming number of properties in foreclosure, they are starting to accept loan modifications via their loss mitigation departments. The time is ripe for consumers (who own homes) to take action and request that their loans be modified towards better terms and a lower interest rate they can afford, if they have high interest rate sub-prime loans or are at risk for foreclosure.
Since, the rate of foreclosures is increasing, everyday, the federal government, congress and the president have approved and signed a new bill which will allow homeowners to take advantage of a new "FHA - Hope for Homeowners Program" designed to save more than 400,000 homeowners from foreclosure. This program will go "live" on October 1st, 2008.
The new FHA loan program will assist homeowners who are currently in foreclosure, close to foreclosure or those who have high interest rate mortgage loans like those called sub-prime loans. The program is different than a loan modification in several ways.
The following is a bulleted layout of the deference's between completing a loan modification and getting approved to do a FHA -Hope for Homeowners program.
1. You can recast your current loan into different terms, with the hope to benefit from a lower interest rate, which is fixed rather than an adjustable interest rate.
2. The costs of the loan modification are rolled on the "back-end" of the loan, which will increase the amount of money you owe.
3. The loss mitigation department may choose to keep the amount (that you own on your loan) higher than your current home value. Or they may choose to lower that amount, some, but not as much as it could be to make your new payment comfortable in the long term. This could mean that you may be in financial jeopardy, in the future.
4. It's a fact, what cause your current lender to be interested in keeping your loan on their books are the servicing rights. They make money servicing your loan over the term of the amortization schedule. The problem is that many lenders have filed for bankruptcy or just got out of the business (due to poor credits markets) and the servicing rights have been sold to other investors. This often causes a strain, since; the servicer does not actually have your loan documents at their facility, so they rely on others to get your original loan information to them for review. This process can cause the loan modification workout to be slow, in many cases. Timing is very important, since, homeowners are not knowledgeable in the process and they often wait to late to get the loan modification process started. It is important to communicate with your current lender and get the loan modification process stated, months before your home goes to foreclosure sale.
5. If your request for a loan modification is rejected, you may want to try it again in a few months, since; some lenders don't document the loan modification attempt you made. They are often motivated by changes in the housing market and their intent changes as more and more loans go into default. It does not hurt to try again. It is smart to work with a loan modification specialist, a seasoned loan officer or an attorney who specializes in real estate, mortgage lending and loan modifications. They understand how to speak to loss mitigation department, personnel and can get a general idea of the mood and trends of your lenders loss mitigation department.
6. Many loan modification specialist work together with attorney firms to get the loss mitigation departments to act in a timely manner. Those same attorney firms work with the loan modification specialist to make sure the original loan documents are not fraud ridden. This is a good approach, yet it can cost the homeowner additional money, since both the loan modification specialist and the attorney need to be paid for their services.
7. Homeowners are required to pay the loan modification specialists and attorneys for the services, provided. Many homeowners think that the cost will be included in the new loan amount, but this is not the case. Logically, lenders are already loosing money when they agree to modify the loan terms and conditions for the homeowner, so, you can bet that they will not agree to "package" the costs of doing the loan modification into the new loan. That cost is paid by the homeowner, directly to the loan modification specialist and/or the attorney. The cost can range between $995.00 and $, 5000.00; as an average. Many loan modification specialist, senior loan officers and attorney firms can work out a payment plan, yet, many require at least 1/2 upfront before they start the loan workout. Understand, there is no guarantee that your loan modification or loan workout will be accepted. You will still have to pay your representation your agreed amount. A large percentage of loan modifications and workouts are accepted. So, it's a good bet, since, most people do not want to loose their homes to foreclosure.
8. Loss mitigation representatives, (most often) do not require you to pay for a new appraisal. Instead, they have your representative provide census track data, a BPO (broker price opinion) or a print out of valuation from title company market sales data. 9. If you are in foreclosure and costs have been incurred from posting your foreclosure sales data, attorney fees, title costs or other costs; you could be liable for those costs, if our current lender requires it (as a requirement to the loan modification).
10. Loss mitigation departments may choose to approve you for a new loan which is (another adjustable or tiered -fixed loan). Be careful. Do your homework or "talk-it-over" with your representation.
FHA- Hope for Homeowners Program:
1. The federal housing administration (FHA) has required that all homeowners who become approved for this program accept a 30 year fixed rate program. No other loan types will be accepted. You can only qualify for this program.
2. FHA will loan up to 90% of the current value of your property. This means that if you purchased your property for a higher purchase price and currently have a loan amount higher than what the value of the property is presently, you can become approved to do a loan amount at 90% of what your current house is worth.
3. If you have more than a 1st trust deed lien (subordinate liens) on your property and your property value has severely, diminished; your current lenders may take the loss when you get approved under the "Hope for Homeowners Program". Usually, the subordinate lenders loose, unless they purchase the primary lien. Most do not purchase the 1st trust deed lien. So, the subordinate lender takes a loose on their investment.
4. FHA's goal is to keep as many homeowners in their homes. They understand that it would be better to do a loan for a homeowner rather than have that property go into foreclosure, be place into the retail real estate marketplace, causing a further degrading of the housing market.
5. The FHA underwriting guidelines are currently more liberal than any other loan guidelines in the current market. FHA is more forgiving in their approach to mortgage lending.
6. The FHA underwriting guidelines have not been disclosed. As October, 1st, 2008 approaches, lenders, processors and underwriters will have a more clear idea as to what is required to get a loan approval.
7. Homeowners will (probably) be required to pay for a new FHA appraisal, as a condition for loan approval and closing. Underwriting guidelines will determine if this is true. The average costs for an FHA appraisal is ranges, $300 - $450.
8. Income to debt ratios will be determined and posted in the underwriting guidelines. Consult your loan modification specialist or loan officer.
9. The loan servicing companies that service, sub-prime loans will (probably) be more inclined to accept a loan modification, since they will want to transfer the lien to FHA, rather than keep it on their books. They have taken huge losses and have an overwhelming desire to get rid if their current problems. Have patience with these lenders, since, they do not keep your actual loan documents at their facilities. They will have to request them. Many loss mitigation personnel are stressed and will want to make a determination as to your file, fast. This is an advantage to you! Work closely with your loan officer to get the items needed for loan submission.
10. If you live in a heavily populated area like Los Angeles, Orange County, San Francisco, Seattle, Portland, Denver, Miami, etc., you will more than likely have a higher percentage of success with a loss mitigation department. This is because there are more homes in foreclosure in concentrated housing areas.
11. Even though we have not seen the FHA underwriter guidelines, (since they have not been delivered to the underwriters) they will be available on or before October, 1st, 2008. We can expect that the guidelines will probably focus on a person ability to make the new housing payment and not the persons credit score. We call this "ability to pay"!
12. If you're, FHA -"Hope for Homeowners Program" loan application is accepted by FHA; your current lender will still have to accept the condition which FHA places on the loan. This means that your current lender may to take a loss in equity by accepting the FHA loan buyout, offered.
13. The good news is that your current lender (already) understands that they will take a loss in equity, if the property goes into foreclosure. If they don't accept the FHA buyout, they may have to place your foreclosed property into the retail sales marketplace. This means that they may have to pay a Realtor up to 6% commission, wait for the property to be purchased, incur additional holding cost, pay a gardener, electricity and water bills. All the while, they realize that the property will probably be reduced in value even more as additional foreclosure properties come on to the marketplace. This is not a rosy situation for them, so, most will realize that it would be better to sell the loan to FHA and take less of a financial loss.
14. The main benefit to your current lender in accepting the terms of a FHA buyout is that under the FHA guidelines, they can benefit from a portion of any equity gain in the property for up to 5 years, at the time FHA buys the loan. If the homeowner chooses to sell the home within the 5 year period after the close of the new FHA loan; the lender can participate in a percentage of any equity gain. This single condition will cause many lenders to accept the FHA loan buyout. Ask your loan officer for information regarding lender participation in an equity gains.
15. Many lenders are fully; "FHA approved lenders" and will require that your loan be recast within the FHA loan department of your current lender. Therefore, ask your loan officer if your current lender (note holder) is FHA licensed. This will save you time and headaches, since; many loan officers will try to do the loan on your behalf without determining if your current lender wants the new FHA loan on their own books. This may be a condition for an FHA loan approval, by your current lender. If our current lender is already an approved lender, they might as well sell the loan to FHA, direct, correct?
16. Third party cost like, attorney fees, loss mitigation fees, foreclosure posting fees, etc., will be absorbed by your current lender under the FHA - Hope for Homeowners Program. You will not incur these fees under the program. The lender will take this loss, too.
17. As part of the Foreclosure Prevention Act of 2008, 1st time homebuyers are encouraged to purchase homes between April, 2008 and July 2009. They can receive up to $7500 dollars in tax credits from the federal government. This program has been established to speed up the housing recovery by getting people to purchase homes. Additionally, it will cause home sellers to purchase homes, as well, since they are often "move up" buyers. This program is part of the overall attempt to correct the bad housing market.
18. Credit Score vs. Your Ability to Make the Payment: These two factors will be outlined in the underwriting guidelines. I would expect that the ability to pay will override the credit score issue, since, most people having problems making their housing payments, already, have degraded credit scores. Consult your loan officer for details.
Consumers, now have several options to preserve home ownership. If one option does not work try the other. Remember, time is of the essence, so act promptly to give your self time to use one or both options.
1. Loan modification is a good option for many, if your have proper representation and get a favorable deal. 2. You will have to pay the costs for this type of loan modification. 3. You will not have to pay for an appraisal, in most cases.
Visit this site for more information: http://www.LoanModificationContacts.com
FHA - Hope for Homeowners Program:
1. This program may be a better deal for you, if your lender is no longer in business (sub-prime lenders and prime lenders). It can still be a great benefit to you if your lender is still in business and wants to remove some bad assets from their books (understanding) you might become one of those bad assets. Your loan officer can provide this information for you.
2. Since, FHA will go to 90% of the current value of your property; you can be the real winner. This simple fact means that you will have a better opportunity to qualify under a 30 year fixed loan and your housing payment will be more affordable, then what you are currently paying.
3. You will most likely, be required to pay for an appraisal. Ask your loan officer about this, since; the underwriting guidelines have not come out, yet.
4. You may or may not have to pay for the closing cost to procure the loan. It has not been determined, who actually pays for the closing costs. It will be in the underwriting guidelines, when they come out. Ask your loan officer.
5. Credit Score vs. Ability to Pay: Underwriting guidelines will determine these two factors. FHA underwriters will probably be more forgiving and weight their approval on your ability to make the monthly housing payment. We will have to wait for the underwriting guidelines. Ask your loan officer about these two factors.
Author: Steve Linnin
A Real Estate and Mortgage Broker for over 23 years. An educator and Trainer to loan officers and real estate agents. An on-going trainer and educator of real estate agents and loan officers.
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Sunday, November 2, 2008
An important step to starting your low carb diet is an important one. You must learn which foods to avoid on low carb diets. In knowing which foods you need to avoid you can plan healthier meals with the foods that are acceptable with your diet. Scoping out what is both acceptable and not acceptable in your diet can put a positive spin on dieting on your dieting experience and ultimately leads to having more fun!
If you are going on a low-carb diet, you may not know that certain fruits should be avoided. The common belief that all fruit is good for you is not correct. Don't be fooled in thinking that you can eat as much fruit as you want and have success on a low-carb diet.
Specific fruits including bananas, watermelons, have a verly high glycemic index. In other words they contain a lot of sugar, and even though you don't have to stop eating them entirely, you shouldn't make a habit of eating them too much.
Most meats are acceptable meal choices when you are following a low carb diet. Any meats with breading or filler however are not acceptable choices. Liver is one of the foods to avoid on low carb diets and thus should not to be eaten when faithfully following this diet.
You should maintain a food diary that lists what you eat and what times you eat it. At the same time, track your weight loss achievement. Write down the weight and even measurements at the beginning of the diet, then keep track of them every week or as often as you like, so you can note the improvement you make. This will bolster your self-esteem as well help to keep you focused with your diet plan.
The great benefit about low carb diets is that you obtain results almost immediately. If you stay committed to your diet, you'll experience great results. However, the most difficult aspect is learning which foods to avoid on low carb diet plans. It is likely that your favorite foods will become a thing of the past, but the effort will be well worth it as those inches come off!
Saturday, November 1, 2008
HomeSchooling Help Can Be Found Here:
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About Online HomeSchool
You should be prepared to invest a good deal of time into learning and researching how to homeschool. Most of what you need can be found on the Internet. Be careful, though, because many websites related to home schooling may simply be trying to sell you their products, which make getting viable information a little bit more difficult.
A good way to see what home schooling is like and how to home school is to speak with others who do it or have done it. If you do not know any home schooling parents, look online for home schooling forums or message boards for more information. Many excellent forums and message boards exist to give you the chance to meet others who are experienced with home schooling and are more than happy to share their knowledge.
Before learning how to home school, you'll need to prioritize your goals. You will have to set up an academic assessment test for your child to take. You can take these tests online, and they will tell you where your child stands academically. The testing is valuable to help you select the right curriculum so that you can place them accurately.
Part of determining how to home school is to find the appropriate home school curriculum that will be comprehensive and interesting for your child. Two of the determining factors in selecting a curriculum are: testing to find the appropriate level of achievement attained by your child and by investigating state regulations on education standards that relate to your child's age level.
In order to know how to home school, you are going to want to have an idea of what you want your child to work on, especially extras like foreign language or religion. Then you'll need to determine the best teaching style for your child, whether it's textbook learning, lecturing, or online learning.
When you've made your decision regarding the curriculum and how to homeschool most effectively, you will find the guidelines in the curriculum you selected. Generally you will also be provided with all of the resources you will need. Your child's needs will determine the lesson plans. Overall, the hard part of home schooling is not learning how to teach, it's how to stick with it.