Small Business Factoring

Kim and Dan Bergholt are both government workers. They are considering purchasing a home in the Washington D.C. area for about $280,000. They estimate monthly expenses for utilities at $220, maintenance at $100, property taxes at $380, and home insurance payments at $50. Their only debt consists of car loans requiring a monthly payment of $350.

Kim’s gross income is $55,000/year and Dan’s is $38,000/year. They have saved about $60,000 in a money market fund on which they earned $5,840 last year. They plan to use most of this for a 20% down payment and closing costs. A lender is offering 30-year variable rate loans with an initial interest rate of 8% given a 20% down payment and closing costs equal to $1,000 plus 3 points.

Before making a purchase offer and applying for this loan, they would like to have some idea whether they might qualify.

Estimate the affordable mortgage and the affordable purchase price for the Bergholts.
Suppose they do qualify; what other factors might they consider before purchasing and taking out a home mortgage?
What future changes might present problems for the Bergholts?
The real estate agent tells the Bergholts that if they don’t care to purchase, they might consider renting. The rental option would cost $1,400/month plus utilities estimated at $220 and renter’s insurance of $25/month. The Bergholts believe that neither of them is likely to be transferred to another location within the next five years. After that, Dan perceives that he might move out of government service into the private sector. Assuming they remain in the same place for the next five years, the Bergholts would like to know if it is better to buy or rent the home. They expect that the price of housing and rents will rise at an annual rate of 3% over the next five years. They expect to earn an annual rate of 5% on the money market fund. All other prices, including utilities, maintenance, and taxes are expected to increase at a 3% annual rate. After federal, state, and local taxes, they get to keep only 55% of a marginal dollar of earnings.

Estimate whether it is financially more attractive for the Bergholts to rent or to purchase the home over a five-year holding period. (Assuming the contract interest rate of 8%, monthly interest payments over the five-year period would total $87,574.)
Suppose it turns out that they have to relocate after one year. Which is the preferred alternative after one year? (Interest payments over the first year would equal $17,852.)

For Commercial Finance Loans – Factoring Loans * Equipment Financing * Purchase Order Finance * Commercial Mortgage – IMM Financial has been in the Commercial Finance Business serving companies just like yours for over 14 years. Put our experience to work for you. We are the Cashflow Specialists.

Do credit default swaps exist for individual lenders or are they specific to particular bonds or loans.

Am I right in thinking that the value of these cds can influence a banks ability to secure credit.

What factors influence the price of the cds ,

For Commercial Finance Loans – Factoring Loans * Equipment Financing * Purchase Order Finance * Commercial Mortgage – IMM Financial has been in the Commercial Finance Business serving companies just like yours for over 14 years. Put our experience to work for you. We are the Cashflow Specialists.

Is that even possible? My reasoning is this:

I am 26 and I am self-employed. I am basically just looking for a bare bones plan that will have the lowest premium possible and I actually care more about emergency care than doctors visits. You see, I don’t get sick often and don’t plan to go to the doctor a whole lot…I just want something in case of an accident and the whole low premium w/ high deductibles thing won’t help me…I’ll be stuck with a sky high bill to pay off if I stay in the hospital. I’d rather have emergency coverage and simply pay out of pocket for a doctor if I have to.

Is there a plan out there in NY that fits this? Anyone know? HELP! I make too much money to qualify for Healthy NY or another low income program..but not enough to reasonably afford a normal healthcare plan when factoring in rent and student loans.

(If this isn’t a reason for universal healthcare in the US, I don’t know what is)

For Commercial Finance Loans – Factoring Loans * Equipment Financing * Purchase Order Finance * Commercial Mortgage – IMM Financial has been in the Commercial Finance Business serving companies just like yours for over 14 years. Put our experience to work for you. We are the Cashflow Specialists.

I’ve been unemployed for a little over a year. Unable to find a job, think my previous employer (state of Illinois) might be black-balling me. (Anyone know how to find that out for sure?….and what to do about it?)..Any way, I’m over $13,000 in debt to a major credit card company…..also owe aprox $5500 on a personal loan through a financial institution. The credit card company calls just about every day. I explained my situation to them from the beginning, but it didn’t do any good. Now I just don’t answer the phone. They’ve sent three letters saying they will turn me over to their attorneys, or place my account with a third party for collection. I have no money whatsoever or I’d file bankrupcy. Had great credit up until I lost my job. Is there any way out of this mess? I also have insulin dependent diabetes (for the last 20 years) and depression and can’t get on any government assistance except foodstamps if that factors into anything. Thanks for all serious answers.

For Commercial Finance Loans – Factoring Loans * Equipment Financing * Purchase Order Finance * Commercial Mortgage – IMM Financial has been in the Commercial Finance Business serving companies just like yours for over 14 years. Put our experience to work for you. We are the Cashflow Specialists.

Yes, I know, I’m young and dumb
I was just wondering – do you go to the bank and get the loan first? How much money do you have to have before you do that? Are you supposed to make an offer on the house first?
(I’d be going straight from an apartment, so I wouldn’t be waiting on my own house to sell or anything).
How does your credit rating factor in? Is it part of the loan?
Any information would be great! I won’t be buying anything anytime soon because we don’t have any money to spare, but I’m just wondering how it works for when I can!
Thanks so much for all the informative answers! I didn’t expect so much help

For Commercial Finance Loans – Factoring Loans * Equipment Financing * Purchase Order Finance * Commercial Mortgage – IMM Financial has been in the Commercial Finance Business serving companies just like yours for over 14 years. Put our experience to work for you. We are the Cashflow Specialists.