With the frequent mention of the stablized but not accelerating Real Estate sales nationwide, so much misinformation or at least misinterpretation of the “true nature of today’s market” is too common.
The facts are very simple in most markets:
Home prices are steady to rising slowly
Short Sales and Foreclosure are still a meaningful
part of the market
Banks will be required to reply to buyer contracts on Short Sales
and Foreclosures in under 30 days beginning July 1, 2012
Qualified buyers are getting mortgages…just extra paperwork
required
Interest rates are the lowest in history…last week’s average
30 year mortgage 3.75%
15 year mortgage 2.25%
All these factors should motivate individuals and families needing a new place and investors looking to get in while the getting is good to “jump in” while the water is great.
Take interest rate benefit:
The difference in Principal and Interest payment between 3.75%
mortgage(today) and a historical ‘good’ of 7% mortgage is as
follows:
3.75% 7% Monthly
Mortgage Payment Payment Savings
$100,000 $463 $665 $202
$200,000 $926 $1330 $404
$300,000 $1347 $1996 $649
$400,000 $1796 $2661 $935
To realize the real value of these rates, simply note that
a buyer can buy a home with $400,000 mortgage for $200 per
month less than Principal and Interest Payment on a $300,000
mortgage at 7%.
Now that is saving big dollars by striking when the fire is hot!!!
And is it ever HOT!!!
Being Credit Ready is key when looking to purchase a home. But did you know that it will keep insurance costs and loan costs low through out the time you own your home?? Or even if you rent and you wish to move or purchase a car. It is nothing to ignore.
As you can see in Larry’s letter below, there are key elements that impact your credit score. And there are actions not to be taken without considerable thought so that you don’t adversely affect your credit score.
As you look over the pie chart, two categories stick out like a sore thumb: Payment History and Amounted Owed.
At 35% and 30% of your credit score respectively, you can see regular, on-time bill payment over time and a low debt level will provide a big part of a positive score. Just as the opposite behavior(missed payment and high debt) will drag the a credit score into the gutter.
Really pay attention to these two and you can really improve your credit.
YET DON’T IGNORE AND OF THE OTHER THREE!!!
A 10% or 15% swing can take a great 700 credit score to mediocre to poor 630/595 scores by not paying any attention to the other details of your credit score.
If your credit needs improving, start with improving on time payments and reducing your debt!! Be ready for that next purchase!!! Or to lower your insurance costs!!
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Too often, savings is a dirty word in the American Lexicon. It denotes “giving up” what I can get now for “whatever may come” later. Though savings activity was reported to rise in 2010/2011 as Americans shed credit card debit and thought more about “cash as king”, the savings rate never broke 5%. Thus, it more than doubled from pre-recession savings that rangedd from 1-2% at best.
IF, we as a nation, had saved 8 to 10% of net incomes in the late 90’s/early 2000’s hey days, the 2008 collapse would never had occurred.
A BOLD STATEMENT???
Not really, for if someone taking home $2500 per month had saved 10%($250) each month for the late 90s/early 2000s, the savings of $30,000 would have stood he/she well during the economic downturn. Assuming the job was maintained, there would be another $10,000 by now in savings.
In addition, most likely, this individual would have had excessive charge card balances or a house payment greater than affordable to stay or sellable if needing to move. This would be true for a simple reason: by saving for the ‘rainy day”, this individual would have more limited funds for said payments thus would have put off extravagent expenditures.
I am sure as this post is read…I will have numerous agree as they were the savers and other that may strongly disagree that saving during the good times becomse one’s safetu met in the bad times
The Dash Poem
by Linda Ellis
At the funeral of a friend.
He referred to the dates on her tombstone
From the beginning to the end.
He noted that first came the date of her birth
And spoke of the following date with tears,
But he said what mattered most of all
Was the dash between those years.
For that dash represents all the time
That she spent alive on earth
And now only those who loved her
Know what that little line is worth.
For it matters not, how much we own,
The cars, the house, the cash,
What matters is how we live and love
And how we spend our dash.
So think about this long and hard;
Are there things you’d like to change?
For you never know how much time is left
That can still be rearranged.
If we could just slow down enough
To consider what’s true and real
And always try to understand
The way other people feel.
And be less quick to anger
And show appreciation more
And love the people in our lives
Like we’ve never loved before.
If we treat each other with respect
And more often wear a smile,
Remembering that this special dash
Might only last a little while.
So when your eulogy is being read
With your life’s actions to rehash
Would you be proud of the things they say
About how you spent your dash?
Winston Churchill
Eleanor Roosevelt
Whatever you are, be a good one.
Abraham Lincoln
John Wooden Learn from yesterday, live for today, hope for tomorrow. The important thing is not to stop questioning.
Albert Einstein
Confucius
Charlie Brown
In three words I can sum up everything I’ve learned about life. It goes on.
Robert Frost
Thomas Edison If you can imagine it, you can achieve it; if you can dream it, you can become it.
William Arthur Ward
Don’t Miss Out on Summer Savings!!
Here are some quick savings ideas with the beautiful weather of Spring and Summer:
Turn off the Air & Open Your Windows — Any day under 85% go back to the old days with a fan in the room you are in… Save on Electric Bill and BE GREEN!
Home Water Park Be creative: Hose on slide for water slide, Water Gun Battle, Hose Tag Save on $70 water park tickets
Eat Out–Barbecue Go Wild with Burger Bonanzas, Kababo Kapers and Dogs on the Run dinners at a near by park or swap decks with friends
Grow It Yourself Join a community garden or be a personal “farmer” at your place. Grow what you like and what WILL grow in your area. You’ll be surprise how well you do and how little it costs
Buy from Local Growers Skip grocery store market ups/middlemen. Buy fresh fruits and vegetables at farmer’s markets, well-known garden/fruit stands and pick your own operations. Go with friends and split up bulk buys!!
Walk to the Store We all can use the exercise and could afford to save a bit on rising fuel costs. So walk where ever you can. Takes longer for sure but you can drop a few pounds and get a bit of fresh air.
Shop to You Drop Car Pool to Garage Sales. Check the paper for the sales that have clothing or items that you need…conduct pin point shopping expedition. Be sure to buy only what is on the list(leave kids at home if possible).
Ask A Friend Really need to get away??? Check with friends, your church or community group for individuals with cabin, beach front condo, timeshare to borrow or get at “low” cost…don’t be afraid to barter a catered dinner
Enjoy Cheap Entertainment Don’t miss community events–Memorial Celebrations, 4th of July, ect…plan for crowds(and hunger) but don’t miss these escapes from the day-to- day.
Look for $1 A.M./Matinee movies and low cost community play houses
Attend Swim Meets, Adult Soft Ball Games, Little League games or other community athletic events that would interest you. Don’t always have to pay to see some good competition or just get a night out.
Got other ideas on how to save a dollar but have fun this summer?? Great!!! Let me know!
Follow these steps to protect your personal information when you’re away from home.
By Kimberly Lankford, Kiplinger.com
It’s easy to become a victim of identity theft while traveling, whether for work or pleasure. Follow these tips to protect yourself.
1. Let your credit-card company know if you’ll be traveling (especially if you’re leaving the country).Financial institutions’ fraud departments are becoming more vigilant about any unusual activity on your card, which can be a great way to detect a problem. But if you’re away from home when the bank calls to verify the charges, you could end up with a frozen account while you’re out of town. Avoid the hassles and notify your bank before you leave home.
2. Don’t automatically call back the phone number that claims to be from the bank. If you get a phone call or e-mail about suspicious activity on your card, don’t automatically call back the number on the message — that’s a common ploy by identity thieves to capture personal information. Call the customer service number on the back of your credit card instead. If the call was legitimate, they’ll be able to connect you to the appropriate department.
3. Secure your mail while you’re gone. Have a trusted neighbor or friend pick up your mail every day, or stop your mail at the post office if you’ll be gone for a while. Your mail can be a treasure trove for criminals — containing your credit-card numbers as well as personal information that could lead to identity theft. “There’s no greater magnet for burglars than a mailbox that is overflowing with mail,” says Adam Levin of Credit.com and Identity Theft 911. And don’t announce the dates of your travel on your Facebook page. That’s like issuing an open-invitation to thieves (see 5 Facebook Posts That Put You at Risk).
4. Weed out your wallet. Tourist destinations are often a haven for pickpockets, so go through your wallet and take out unneeded credit cards and personal information before you leave. Don’t carry your Social Security number in your wallet, and only take the credit cards that you need. Make copies of all of your important documents, such as your passport, driver’s license, health insurance card and tickets, so you’ll have access to the information if your wallet is stolen, says Levin. Leave the copies with a trusted family member or scan them into an encrypted file on your computer. Also keep a list of contact numbers for your credit-card company and bank with you, so it will be easy to call if your wallet is stolen or you have any trouble with your account.
5. Be wary of generic ATMs. Banks have been reporting an increase in ATM-skimming incidents. This is when thieves install a card reader in an ATM to capture your account information and PIN number, so they can steal from your account. Levin recommends sticking with bank ATMs at a branch to be safe. “There’s a greater level of security,” he says.
6. Check your accounts regularly for suspicious activity. “Spend a few minutes online every day looking at your bank and credit-card accounts, and make sure every transaction is yours,” says Levin. This is a good idea all the time, but it’s particularly important when you’re out of town and might miss a call from your bank about suspicious activity. Some banks offer a service that will notify you by text message or e-mail whenever a transaction above a certain size is made on your card.
7. Be careful with hotel computers. Don’t access your accounts or personal information on public hotel computers, which could have software that logs keystrokes and records your passwords and account numbers. And be very careful when using an unsecure wireless network, too.
8. Don’t leave personal information lying around in your hotel room. Keep your credit cards and other important information with you or lock them up in the hotel safe, says Levin, and leave your checkbook in a safe place at home, if possible. Safeguard your laptop computer, too, especially if it has account information that is not encrypted.
9. During long absences, freeze your credit. If you’ll be traveling for a long time and won’t be able to check your accounts regularly for suspicious activity, consider putting a freeze on your credit report. A freeze prevents potential lenders from accessing your credit report without your authorization, which can prevent identity thieves from opening new accounts in your name. You can still make charges to your current cards without unfreezing your account. It generally costs $10 at each credit bureau to freeze the account and $10 to unfreeze it. For this precaution to be effective, you must freeze your credit report at all three credit bureaus. Contact Equifax.com, TransUnion.com and Experian.com individually.
10. Be vigilant after you return home. Identity thieves are known for their patience, and it can take them a long time to pounce. Check your credit report at www.annualcreditreport.com for any suspicious activity — you can get one free copy of your report from each of the three credit bureaus every 12 months, and you can stagger your requests so you can see one copy every four months. This is a good move for everyone to do, even if they haven’t left home in a while.
For more information and steps to take to report ID theft, see the Federal Trade Commission’s ID Theft Site. Also see my Tricks ID Thieves Use column for ID theft red flags, How to Avoid ID Theft for steps to take if your wallet has been stolen, and Your ID Theft Prevention Kit for more information about protecting your identity.
Reprinted with permission. All Contents c2011 The Kiplinger Washington Editors. www.kiplinger.com.
| by Kerry K. Taylor on Mar 2, 2011 | 17 Comments |
If you’re in the market for a mortgage, a car loan, or looking to rent an apartment, it may be time to check your credit score.
A credit score is an ever changing three-digit number between 300 and 900. The higher your number, the more likely you are to be approved for a loan or to negotiate a preferred interest rate. If your credit score is low, you may pay higher rates or be denied credit based on the lender‘s criteria.
- Check out the 5 Minute Guide to Your Credit Report and Credit Score to learn how to find your score.
Your credit score is an important piece of financial information. It’s used by lenders, insurers, and landlords to gauge your credit behaviour and determine if you’re a good candidate for credit. If you’ve lost out on an apartment or been denied a loan recently, it may be your credit score that’s holding you back.
But don’t worry if your score is low, there are ways to improve it. Since your credit score is recalculated continuously to reflect your recent bill payments and debt levels, your score from a month ago is probably not the same score today. Here are seven ways to raise your credit score:
1. Check your credit score at BOTH credit reporting agencies.Your credit score can vary between Canada’s two major credit reporting agencies, Equifax and TransUnion. Each agency uses different credit data as well as a slightly different credit scoring model to tally your number. If you’re being denied credit, it may be that one agency is reporting differently. Checking your credit report and score at both agencies can also help you detect any fraudulent activity or possible instances of identity theft.
2. Report and correct any inaccuracies.Don’t let your credit score suffer due to inaccurate information on your file. Be proactive and protect yourself by reviewing your credit files. If you find an inaccuracy, contact the creditor or the credit reporting agency to correct it immediately.
3. Pay all your bills on time.Lenders look for patterns and love to see a solid history of paying every bill on time. Any late credit card payments, collections, or bankruptcies can significantly lower your credit score — so be punctual with each bill payment to raise your score.
- Check out these 5 Ways to Beat Your Credit Card Debt for some score raising tips!
4. Watch your debt.Don’t run your credit balances close to your limit! Staying below half your available credit limit can help to improve your score sooner. For example, if you have a credit card with a $5,000 limit, try to keep the balance owed below $2,500.
5. Avoid applying for credit.When you apply for credit, a “hard query” may be made to your report by the lender to check your creditworthiness. Too many “hard queries” in a short period of time can lower your score, so stick to applying for credit only when you need it. Checking your own score won’t lower your score since this is a “soft query”. Applying for a lot of credit may be interpreted as a sign of financial difficulty, which can impact your score as well.
6. Give yourself some time.Time can improve your credit score, especially if you can establish a long history of paying bills on time and being responsible with credit. Negative factors such as bankruptcies, collections, or foreclosures drop off your report after a number of years, depending on your home province or territory.
7. Don’t close old accounts.It may seem counterintuitive to us, but unused credit is a good thing in the eyes of a credit reporting agency and lowering the amount of money you can borrow relative to your debt can impact your score.
Your Turn: Got any tips on how to raise a low credit score?
Fundamentals of Personal Finances 