Credit Debt Banking News | CDBN

The idea of diagramming you own personal finance network to show the relationships between your financial accounts is such a great idea.  I was inspired by Jim at Bargaineering to create my own financial network map.  Being a systems/software engineer by profession, I can’t believe I never though of the idea myself, but I think its a great tool for understanding your own financial accounts.  In the past, I’ve often had to do some financial maneuvering to transfer funds between accounts electronically (like when I went away to college and did not have a physical bank located in my city), and this is a great way to see how you can make transfers more efficiently and more.

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When your down payment on a home is less than 20% of the purchase price you must pay private mortgage insurance, which insures the lender in case of the borrowing defaulting on the loan.  The borrower pays the insurance premium each month which is included in the monthly mortgage payment.

According to the Mortgage Bankers Association, the PMI is generally about 0.5% of the loan balance, annually. For a $200,000 loan, this equates to an annual PMI premium of $1000, or $83.33 per month added to your mortgage payment.

You might be thinking, why should the borrower pay monthly PMI premiums for the protection of the lender?  It’s a valid questions; generally insurance premiums ..read more

With the Federal Reserve’s recent move to pump another $1 trillion dollars into the US economy, the possibility of rising inflation is highly likely if not imminent. Simply put, inflation happens when prices rise due to the falling inherent value of a currency and usually occurs when the government prints money it does not have. Inflation is harmful because prices rise, but wages do not rise as quickly.

Inflation is also harmful to investments and savings. In order to actually grow your money, your money must grow at a faster rate than the current inflation rate. When your money grows at a rate slower than inflation, you are actually losing money because your ..read more