I want a home based business while I finish my business studies through correspondence school. I want to be able to apply my learning through concreate means. This will help make the grade, and earn money at same time.The internet offers so many possibilities! I just want to be able to make the right choice when I am investing my time and effort. Please send more in formation on your proposals.

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Kip Tip: Prepay your mortgage?

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This morning, the central bank announced further measures to address the liquidity problems facing financial institutions caught up in the mortgage mess. The Fed said it will lend up to $200 billion to securities dealers for periods as long as four weeks, rather than overnight, which is the current policy.

Stocks rallied on the Fed move. At 11:30 a.m. ET, the Dow Jones Industrial Average was up 216 points to 11,956 after losing 153 points on Monday. As of Monday’s close, the Dow had lost 546 points, or 4.3%, this month and had shed 11.5% for the year.

This morning, the Nasdaq Composite Index had gained 44 points to 2,214, and the Standard & Poor’s 500 Index had added 22 points to 1,296.

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More and more lenders are offering home equity lines of credit. By using the equity in your home, you may qualify for a sizable amount of credit, available for use when and how you please, at an interest rate that is relatively low. Furthermore, under the tax law–depending on your specific situation–you may be allowed to deduct the interest because the debt is secured by your home.

It’s a tricky market so watch your back and don’t get sucked into a line of credit you can’t repay.  No one wants to lose their house and these types of loans may seem enticing but the economy is not headed in the right direction.  Get all the facts before you sign anything!

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A home equity loan (sometimes abbreviated HEL) is a type of loan in which the borrower uses the equity in their home as collateral. These loans are sometimes useful to help finance major home repairs, medical bills or college education. A home equity loan creates a lien against the borrower’s house, and reduces actual home equity.

Home equity loans are most commonly second position liens (second trust deed), although they can be held in first or, less commonly, third position. Most home equity loans require good to excellent credit history, and reasonable loan-to-value and combined loan-to-value ratios. Home equity loans come in two types, closed end and open end.

Both are usually referred to as second mortgages, because they are secured against the value of the property, just like a traditional mortgage. Home equity loans and lines of credit are usually, but not always, for a shorter term than first mortgages. In the United States, it is sometimes possible to deduct home equity loan interest on one’s personal income taxes.

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As home sales and prices continue to slide the news continues to worsen for home owners and property owners everywhere.  Now a necessary part of many people’s incomes and buying power is being completely eliminated.  When will economists and bankers realize that fast fixes via interest rates from The Fed aren’t going to cut it.  We need ound economic policies from the top down that encourage not just consumer confidence but consumer purchasing power.

It’s all about disposable income folks.  You have it or you don’t.  Personally, I dispose of mine in my gas tank.

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NEW YORK (MarketWatch) — Is home equity the new subprime? Goldman Sachs may think so — the brokerage lowered its 2008 earnings estimate for JP Morgan Chase & Co. to $3.30 from $3.44 Thursday amid warnings that problems in the bank’s home equity loan portfolio could cost it $450 million, more than twice previous estimates.

A team of Goldman (GS) analysts headed by William Tanona made the predictions in a note to investors.

JP Morgan (JPM) was down more than 2% in early trading Thursday.

“Home equity losses will be [JP Morgan]’s most significant headwind,” the Goldman analysts said, citing plummeting housing prices and skyrocketing negative equity as major concerns for the bank in coming months.

Goldman retained a “neutral” rating on the stock. Merrill Lynch and Co. (MER) also trimmed its earnings target for JP Morgan Thursday, to $3.83 from $4.07.

(more…)

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