The Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009 doesn’t even go into effect until February 2010–but it’s already having some unintended consequences. Credit card companies scrambled to hike interest rates before restrictions on rate increases kicks in. Consumers screamed. Continue reading ‘Bad Credit? Your Credit Cards May Go Away’
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Loading ...According to a story in the New York Times, one of the nation’s largest lenders is being sued by government officials in Tennessee for discrimination in mortgage lending. The suit charges that some silly loan agents stupidly steered minority borrowers into more expensive sub-prime and bad credit mortgages than white borrowers. Now (CYA disclaimer follows), this lender may or may not have committed discrimination. And most loan officers at this and other banks are probably not discriminating against applicants. But, it does happen. So how can you be sure that your lender isn’t being dumb and discriminating against you? Actually, it isn’t that hard. Continue reading ‘Discrimination in Mortgage Lending?’
(2 votes, average: 5 out of 5) Loading ...Okay, you’re probably going to be glad to see 2009 go. You lost income. You gained debt. Cutting out lattes ain’t going to cut it when it comes to debt relief. You want to start the new year by getting a handle on your debt. You could be good in the future if you could just get the past off your back–right? Continue reading ‘Is Debt Management Better than Bankruptcy?’
(2 votes, average: 4.5 out of 5) Loading ...HUD Feels Your Pain–And Does Something About It
Shopping for a refinance mortgage in 2010? You can lose the Advil–comparing mortgage quotes won’t be causing any headaches after January 1st, 2010. The new forms are easy to understand, and all the important stuff is right up front. In 2010, you won’t have to wade through piles of disclosures, looking for evil fine print. And it won’t matter whether the lender chooses to call a fee “administration,” “underwriting,” “extra silly charges” or “garbage,” you get a bottom line figure that lets you cut to the chase and compare loans easily from one lender to the next. Continue reading ‘2010 Mortgage Disclosures to Be “X Rated”’
(5 votes, average: 5 out of 5) Loading ...If refinancing out of a bad credit mortgage isn’t in the cards this year, you still might be able to save some money by getting a better deal on your homeowner’s insurance. It’s required by your mortgage lender, so you have to have it. But you don’t have to spend an arm and a leg.
1. Shop–Every Year
Don’t just renew your policy without making sure you are getting the best deal you can. Look at pricing, of course, but also the service you could expect if you needed to file a claim. So ask friends and check consumer resources for service ratings. And ask insurers what you could do to lower your costs.
You can check out the financial stability of the firms you are considering with rating companies such as A.M. Best and Standard & Poor’s . Also, you can consult consumer magazines. Find three good insurers and get price quotes.
2. Up Your Deductible
Deductibles are what you have to pay before your insurance company reimburses you for your damage claim and is determined by the terms of your policy. A higher deductible means savings on premiums. If you can raise your deductible from $500 to $1,000, you could save up to 25%.
3. Don’t Insure the Home’s Sales Price
The land under your house won’t be stolen, blown away, or burned down, duh. So don’t include its value when buying home insurance. If you do, you may pay a lot more than you should. I have seen people with$25,000 mobile homes insure them for $125,000, when $100,000 is land–look at your appraisal, and insure enough to replace the dwelling only.
4. Get Multiple-policy Discounts
Some insurers take 5% to 15% off your premium if you buy two or more policies. But make certain this combined price is lower than buying the different coverage from different companies, or all your policies from a new company.
5. Master Home Disaster
Ask your insurance agent what you can do to make your home stronger against natural disasters and see what discounts you could get.
6. Be Secure
Make sure you get discounts of at least 5% for a smoke detector, burglar alarm, or dead-bolt locks. Some companies will discount your premium by up to 20% if you install a comprehensive monitored sprinkler, fire, and burglar system.
7. More Discounts!
Retirees or those in certain careers like science, military, or teaching may get discounts of up to 10% at some companies. Employers and professional associations sometimes offer group insurance programs with special rates.
8. Take Credit
Establishing a solid credit history can cut your insurance costs. Insurers often pull credit information to price insurance policies. This is good for your future mortgage refinance, too.
9. Shop Around, But Sometimes Loyalty Pays
If you’ve been with an insurer for years, you could receive a special discount. Some companies will drop their premiums by 5% if you remain with them for three to five years and by 10% if you keep your policies for six years or more.
10. Evaluate Your Coverage
Make sure you add any major purchases or renovations to your home. But don’t waste money on useless coverage. If your five-year-old computer is no longer worth the $4,000 you paid for it, cancel your excess coverage and save some money.
Refinancing is about more than getting the lowest mortgage rates. So compare mortgage rates, but also look to lower the other costs of home ownership.
(2 votes, average: 3 out of 5) Loading ...A new study by First American CoreLogic predicted that refinancing will result in $2.3 billion in savings for those who refinanced during the first six months of 2009. According to the study, the median individual monthly savings was $120, 10.5% less than the previous mortgage payment. The total benefit over the next five years to homeowners who refinanced in 2009 should grow to $11.5 billion. Should you join these people and save some money?
Continue reading ‘Should You Refinance During the Holidays?!’
(1 votes, average: 5 out of 5) Loading ...Many a refinancing homeowners is unpleasantly surprised to find that he or she is getting “impounded” by a new mortgage company. What does “impounded” mean? They aren’t being towed; they aren’t being locked up–just what is being done to these borrowers? Continue reading ‘What Is a Mortgage Impound Account and Do You Have to Have One?’
(1 votes, average: 4 out of 5) Loading ...If you don’t have enough cash to make your entire mortgage payment, but could pay some of it on time, does the lender have to right to refuse your payment and give you a bad credit rating? Continue reading ‘If You Make a Partial Mortgage Payment Does it Hurt Your Credit?’
(1 votes, average: 5 out of 5) Loading ...The short answer is no. The long answer is maybe. Officially, your down payment has to be seasoned funds (that is, money you have had for at least a couple of months) that are legally yours. In the case of FHA financing, you can get down payment assistance only from immediate family and from certain approved community housing organizations. Continue reading ‘Can You Use a Cash Advance on Your Credit Card to Fund Your Down Payment?’
(2 votes, average: 5 out of 5) Loading ...The rules change when the economy goes south. Whatever you heard from NPR or Grandma, like always pay more than the minimum on your credit cards, retire your mortgage as soon as possible, and a home equity line of credit (HELOC) is the best second mortgage because of its flexibility, isn’t necessarily true when times get tough. Continue reading ‘Rules Were Meant to Be Broken: HELOCs the Best Second Mortgage’
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Gina Pogol writes for an online media company about mortgage and finance. In addition to a decade in mortgage lending, she formerly consulted for Experian and other credit bureaus, and worked as a tax accountant for Deloitte. She has a BS in Financial Management from the University of Nevada.
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