Financial Education

Just like any form of education, financial education requires us to learn and be taught. Reading and listening to individuals that have what you want is one of the greatest ways for us to get ahead in our financial life.

Robert Kiyosaki, the auther of the book Rich Dad, Poor Dad, teaches the idea that there is a great need to change our outlook on finances and money. He emphasizes the need to aquire assets not liabilities. All of his books, audio files and games are designed to help anyone get ahead financially.

The need to educate and to continue to educate ourselfs financially is key to financial freedom.

To see more products from Robert Kiyosaki visit Richdad.com

How Much Debt Do You Have?

Looking at how much debt you have can be scary or pleasant, depending on your situation. MSN Money has a great tool that will help you calculate how mush debt you have.

Click Here To Calculate Your Debt

Knowing how much debt you do or do not have is very important. Knowing this information can help you to eliminate debt or can be a slap in the face for you to stop spending. On the other hand realizing that do not have as much debt as you thought can open your financial eyes to new investments or show you that you can put more money away for retirement. No matter your situation, knowing and managing your debt is key to financial freedom.

Mistakes to avoid when buying a home

MSN's Money writer Liz Pulliam Weston, shares a article on 8 mistakes you can make when you are buying a home. Here are a few that can help.
(Read the full article here)

Not fixing your credit

Mortgage brokers say they're confounded at the number of buyers who apply for a mortgage with their fingers crossed, hoping their credit will allow them to qualify for a loan.
Before you even think about applying for a mortgage, obtain copies of your credit report and your FICO credit score. Your FICO score is the three-digit number that's used in 75% of mortgage-lending decisions. You can order your FICO score on the Web for a fee of $14.95, which includes a copy of your credit report.
Doing this at least six months in advance should give you plenty of time to challenge any errors on your report and ensure that they're removed by the time you're ready to apply for a loan. You can also see the legitimate factors that are hurting your score and do something about them, such as paying off an overdue bill or paying down credit card debt.

Not looking for first-time home buyers' programs

These programs, typically sponsored by state, county or city governments, often offer better interest rates and terms than you'll find among private lenders, said mortgage consultant Diane St. James. Some are tailored for people with damaged credit, while most can help people with little saved for a down payment.

Not getting pre-approved for a loan

Many first-time borrowers confuse being "pre-qualified" with being "pre-approved." Pre-qualification is a pretty casual process, where a lender tells you how much money you probably can borrow based on how much money you make, how much debt you already have and how much cash you have for the down payment.
Getting pre-approval, by contrast, is a much more rigorous process and involves actually applying for a loan. You typically submit tax returns, pay stubs and other information. The lender verifies the information and checks your credit. If all goes well, the lender agrees in writing to make the loan.
In a hot or even warm real estate market, the house hunter who is only pre-qualified is a cooked goose. Home sellers and their agents give much more weight to offers being made by buyers who already have a loan lined up. (Access Point Loans provides you with a free pre-approval, see the downloads section at the top of the blog.)

Borrowing too much money

Many people take out the biggest loan they possibly can, figuring that their incomes will eventually increase enough to make the payments comfortable. But few first-time buyers have any clear idea of how expensive homeownership can be. Not only will you shell out more for mortgage payments than you probably did for rent, but you'll also need to cover property taxes and homeowners insurance, as well as higher bills for utilities, maintenance and repairs than you faced as a renter.
Lenders are perfectly willing to let you overextend, knowing that you'll probably forgo vacations, retirement savings and new clothes for the kids rather than default on your mortgage.
"Mortgage money … is way too easy to get," said Ted Grose, president of the California Association of Mortgage Brokers. "People tend to overbuy … and that can really stress family life. It's also a formula for foreclosure." Instead of going to the edge of affordability, consider limiting your housing costs -- mortgage payments, property taxes and homeowners insurance -- to 25% or so of your gross income. That's a much more sustainable level for most people, financial planners say, than the 33% lenders are typically willing to give you.

Not having enough cash on hand after closing

After borrowing too much, and scraping together every last dime for closing costs, many home buyers have nothing left in the bank to pay for anything unforeseen happening --and something unforeseen always happens.
"It costs so much just to move in," Grose said. "Then the water heater breaks."
Some people are so tapped out by the process, Jackson said, that they're not able to make their first mortgage payment on time. That's why "more and more lenders are requiring [borrowers have] three months' reserves after closing," Jackson said.
That's a smart idea for borrowers, anyway. Having three months' reserves, which means a fund equal to three months' worth of expenses, will help you handle the added costs of homeownership with much less stress.

High Interest Savings Account

Most everybody has a savings and checking account and most everybody earns less then 1% a year on the interest rate that is associated with their savings account. There are plenty of banks out there that offer a lot higher of a rate for your savings account. This is a no brainer. Why earn 1% on your money when you can be earning 3% or higher with no extra fees. http://www.managingmoney.com money.com has a great list of banks that offer a lot higher rate then your local bank.

Check out their list

This is a great way to earn some extra money through out the year by just simply moving some money around.

Fannie Mae can help

What is Fannie Mae?

Fannie Mae is a financial services company on the New York Stock Exchange (FNM/NYSE) serving the American home mortgage industry. Fannie Mae offers banks and other mortgage lenders financing, credit guarantees, technology and services so lenders can make more home loans to more consumers.

Fannie Mae does not make home loans -- we help mortgage lenders serve homebuyers. By serving more than 1,000 lenders nationwide, large and small, Fannie Mae helps to make home financing more possible for families from all walks of life across America.

Fannie Mae also helps finance affordable housing and community development projects, working with local, state and national housing partners. (For example, we are a major investor in Low Income Housing Tax Credits, which help finance affordable rental housing.) Our goal is to help lenders and housing partners put more families into homes and keep their homes, and to expand the nation's stock of quality affordable housing.

How does Fannie Mae help?

Many Americans still are being overlooked, underserved, and overcharged in their search for affordable homeownership and rental housing options. Fannie Mae is dedicated to helping our partners tear down barriers, lower costs, and increase the opportunities for homeownership and affordable rental housing options for low- to moderate-income individuals and families.

Fannie Mae maintains relationships with a wide range of housing partners, lenders, and other key players to meet specific affordable goals:

• Expand access to homeownership for first-time home buyers and help raise the minority homeownership rate with the ultimate goal of closing the homeownership gap entirely;
• Make homeownership and rental housing a success for families at risk of losing their homes;
• Expand the supply of affordable housing where it is needed most, which includes initiatives for workforce housing and supportive housing for the chronically homeless; and
• Transform targeted communities, including urban, rural and Native American, by channeling all the company’s tools and resources and aligning efforts with partners in these areas.

Fannie Mae is a great institution that helps Americans with home financing. Check out their site www.faniemae.com for more information.
(Information taken from fanniemae.com)

Benifit from foreclosures, buy now!

Looking to buy a home? This is a great time to buy a new home. With all the talk of the economy falling and the financial industry in a mix, it is creating a media storm that is pushing many buyers out there, back to the other side of the fence, and helping them to make the decision not to buy.Less buyers equal lower home prices, which translates to a better deal for you. Combine that along with a record number of foreclosed homes on the market, it is turning into a buyers market. Foreclosed homes can be a great purchase. In most cases the bank that owns the house wants to get rid of it as soon as possible. They are willing to take less money or accept terms on the purchase that they normally would not allow. If you are currently on the hunt for a new home or an investment property, now might just be the best time to grab up that new rental or your home of the future. Follow the tips below to find the right home for you.

• Start your search online- The Internet is a great source that you can use ti find hundreds of homes from the comfort of your own home. (see right side bar for links to sites to start your search)
• Use a Realtor- Realtors are have the knowledge and know how, when it comes to finding and making offers on homes.
• Don't settle- Make sure you find the right home that fits you and your needs. Just settling on the first deal that you come across can lead you to miss your dream home or a better investment property.
• Research the neighborhood and area info- The home might be nice but are the schools, neighbors and community.
• Make the offer that you are comfortable with- Use the help of your Realtor and make sure that when you find your next home purchase you are paying what you feel comfortable with.
• Enjoy your new home- Make your new home yours.
  

The Richest People in the World

Forbes.com has a list of the most wealthy people in the world. There is always a lesson to be learned from those individuals that are successful. Here is the current list of the top 20.

THE BILLIONAIRES

1. Warren Buffett
2. Carlos Slim Helu
3. William Gates III
4. Lakshmi Mittal
5. Mukesh Ambani
6. Anil Ambani
7. Ingvar Kamprad
8. KP Singh
9. Oleg Deripaska
10. Karl Albrecht
11. Li Ka-shing
12. Sheldon Adelson
13. Bernard Arnault
14. Lawrence Ellison
15. Roman Abramovich
16. Theo Albrecht
17. Liliane Bettencourt
18. Alexei Mordashov
19. Prince Alwaleed
20. Mikhail Fridman

Click Here for Complete List

These are the examples that need to be followed to increase personal wealth. Click on their names for their bio and more information.

Your Credit Report and Your Privacy

Having and keeping good credit is becoming more and more important in our financial life. Our interest rates and how much extra we pay on loans and insurance is based on our credit report. While credit is very important, knowing your rights and how to protect your good name is even more important.
www.privacyrights.org lists many rights and ways to protect your credit. Read the report
Listed are below are some highlights of the report that are key to you, the consumer.

• How do credit scores affect my application?

The practice of credit scoring is widespread and growing. Until recent years, consumers have seldom gained access to their credit score and have not been able to learn the factors that went into the scoring process. But a 2000 law in California gave mortgage applicants a right to see their credit score (California Civil Code 1785.10, 1785.15-1780.20). Since then, the credit industry voluntarily loosened its grip on the credit score. Further, the recent FACTA amendments to the FCRA give you new rights to know your credit score as well as an explanation of the factors that determined the score.

In March 2006 the three national credit bureaus announced a joint scoring model called the VantageScore which sets a scoring range different than the FICO score. To learn more about VantageScore, see www.experian.com/products/vantagescore.html.

To learn more about the topic of credit scoring, read:

• FTC guide, www.ftc.gov/bcp/conline/pubs/credit/scoring.htm
• PRC Fact Sheet 6c on credit scores, www.privacyrights.org/fs/fs6c-CreditScores.htm
• Fair, Isaac and Co. (FICO) web sites, www.fairisaac.com and www.myfico.com. FICO is the leading developer of scoring methodology. The credit score is often called a "FICO."

• Who has access to my report?

Anyone with a "legitimate business need" can gain access to your credit history, including:

	Those considering granting you credit.
	Landlords.
	Insurance companies.
	Employers and potential employers (but only with your consent).
	Companies with which you have a credit account for account monitoring purposes.
	Those considering your application for a government license or benefit if the agency is required to consider your financial status.
	A state or local child support enforcement agency.
	Any government agency (limited usually to your name, address, former addresses, current and former employers).

Generally, only an employer or prospective employer needs your written consent to obtain a report. An exception is Vermont where any user needs your oral or written consent. In practice, most potential creditors ask for your permission to review your report. Your permission is not required when inquiries are made in connection with a pre-approved credit offer.

• Free Credit Reports.

Thanks to the federal FACT Act, consumers nationwide are now able to get a free copy of their credit report annually from each of the three credit bureaus - Equifax, Experian, and TransUnion (FCRA sec. 612 (a)(1)(A)&(B)).

To order your free reports, you can call the official toll-free number, (877) 322-8228. You can also go online to www.annualcreditreport.com where you can order your reports directly. Or you can print out the form and mail your request. https://www.annualcreditreport.com/cra/requestformfinal.pdf

The World Privacy Forum has released a study that indicates that privacy-conscious consumers may be better served by ordering their credit reports by phone or mail rather than online. See www.worldprivacyforum.org/calldontclick.html for more details.

For more information about access to free credit reports, see the Federal Trade Commission's Facts for Consumers at www.ftc.gov/bcp/conline/pubs/credit/freereports.htm.

You are not required to order all three credit reports at the same time. If you wish, you can stagger your free reports over the course of a year by ordering one report every four months. This way, you are monitoring your credit reports on an ongoing basis. But if you are an identity theft victim or are shopping for credit, it is best to order all three at one time.

There are certain times when you are entitled to a free copy for special circumstances. The new rule that gives you free access once a year does not affect your ability to get a free report in the situations listed below. You are entitled to a free credit report:

	If you have been denied credit (you must request a copy within 60 days)
	If you are unemployed and intend to apply for employment in the next 60 days
	If you are on public welfare assistance
	If you have reason to believe your file contains inaccurate information due to fraud or identity theft
	If an adverse decision related to your employment has been made based in whole or in part on information contained in the report
	If your report has been revised based upon an investigation you request

Further, the laws in seven states give residents the ability to obtain credit reports free of charge. This is over and above the free annual credit report available nationwide through the FACT Act. These states are: Colorado, Georgia (2 per year), Maine, Maryland, Massachusetts, New Jersey and Vermont.

Creating a budget

Feedthepig.org, is a great website full of many resources to help you save money and create a stable financial future for yourself. Their site contains a great article on creating a budget.


Establishing a Budget

Do you ever wonder where your money goes each month? Does it seem like you're never able to get ahead? If so, you may want to establish a budget to help you keep track of how you spend your money and help you reach your financial goals.

Examine your financial goals

Before you establish a budget, you should examine your financial goals. Start by making a list of your short-term goals (e.g., new car, vacation) and your long-term goals (e.g., your child's college education, retirement). Next, ask yourself: How important is it for me to achieve this goal? How much will I need to save? Armed with a clear picture of your goals, you can work toward establishing a budget that can help you reach them.

Identify your current monthly income and expenses

To develop a budget that is appropriate for your lifestyle, you'll need to identify your current monthly income and expenses. You can jot the information down with a pen and paper, or you can use one of the many software programs available that are designed specifically for this purpose.

Start by adding up all of your income. In addition to your regular salary and wages, be sure to include other types of income, such as dividends, interest, and child support. Next, add up all of your expenses. To see where you have a choice in your spending, it helps to divide them into two categories: fixed expenses (e.g., housing, food, clothing, transportation) and discretionary expenses (e.g., entertainment, vacations, hobbies). You'll also want to make sure that you have identified any out-of-pattern expenses, such as holiday gifts, car maintenance, home repair, and so on. To make sure that you're not forgetting anything, it may help to look through canceled checks, credit card bills, and other receipts from the past year. Finally, as you list your expenses, it is important to remember your financial goals. Whenever possible, treat your goals as expenses and contribute toward them regularly.

Evaluate your budget

Once you've added up all of your income and expenses, compare the two totals. To get ahead, you should be spending less than you earn. If this is the case, you're on the right track, and you need to look at how well you use your extra income. If you find yourself spending more than you earn, you'll need to make some adjustments. Look at your expenses closely and cut down on your discretionary spending. And remember, if you do find yourself coming up short, don't worry! All it will take is some determination and a little self-discipline, and you'll eventually get it right.

Monitor your budget

You'll need to monitor your budget periodically and make changes when necessary. But keep in mind that you don't have to keep track of every penny that you spend. In fact, the less record keeping you have to do, the easier it will be to stick to your budget. Above all, be flexible. Any budget that is too rigid is likely to fail. So be prepared for the unexpected (e.g., leaky roof, failed car transmission).

Tips to help you stay on track

• Involve the entire family: Agree on a budget up front and meet regularly to check your progress
• Stay disciplined: Try to make budgeting a part of your daily routine
• Start your new budget at a time when it will be easy to follow and stick with the plan (e.g., the beginning of the year, as opposed to right before the holidays)
• Find a budgeting system that fits your needs (e.g., budgeting software)
• Distinguish between expenses that are "wants" (e.g., designer shoes) and expenses that are "needs" (e.g., groceries)
• Build rewards into your budget (e.g., eat out every other week)
• Avoid using credit cards to pay for everyday expenses: It may seem like you're spending less, but your credit card debt will continue to increase

Rates are on the rise

The following report was found on CNN Real Estate.

WASHINGTON (AP) -- Rates on 30-year and 15-year mortgages rose this week, delivering another dose of unwelcome news to the troubled housing industry.

Freddie Mac (FRE, Fortune 500), the mortgage company, reported Thursday that 30-year fixed-rate mortgages averaged 5.88% for the week ending April 3. That was up from last week's 5.85% and was the highest since the middle of March, when 30-year rates stood at 6.13%.

The increase in mortgage rates also isn't welcome news to prospective home buyers in an environment where obtaining financing to buy a home or other big-ticket items has become more difficult.

Rates on 15-year, fixed-rate mortgages, a popular choice for refinancing, rose this week to 5.42%, up from 5.34% last week.

"Housing .... continues to be a drag on the economy," said Frank Nothaft, Freddie Mac's chief economist.

However, rates on shorter term mortgages dipped this week

For five-year adjustable-rate mortgages, rates dropped to 5.59% this week, from 5.67% last week. And, rates on one-year, adjustable-rate mortgages averaged 5.19% this week, down from 5.24% in the prior week.

The mortgage rates do not include add-on fees known as points. For 30-year and 15-year mortgages as well as one-year adjustable-rate mortgages the nationwide average fee was 0.5 point. Five-year mortgages carried a 0.6 point average fee.

A year ago: A year ago, rates on 30-year mortgages stood at 6.17%, 15-year mortgage rates averaged 5.87%, five-year adjustable-rate mortgages were 5.92% and one-year adjustable-rate mortgages were at 5.44%.

Housing has been suffering through a severe slump that has dragged down house prices in many parts of the country. The fallout is afflicting both homeowners and the economy at large.

For the first time, Federal Reserve Chairman Ben Bernanke acknowledged on Wednesday the possibility that the country could fall into recession, something that hasn't happened since 2001. The economy is being clobbered by a trio of crises - housing, credit and financial. That's taking its toll on the willingness people to make big financial investments like buying a home.

Foreclosures, meanwhile, have swelled to record highs, aggravating housing's problems by dumping more empty homes on an already depressed market.

Removing Debt

Most people have either multiple credit cards, car loans, personal loans and not to mention a mortgage. Having many loans and lines of credit at the same time can be very dangerous. The money that you owe can get high very quickly. If you are in this position or you just want to pay off some of your loans quicker, here are some basic tips that you can do to help get rid of some unwanted debt and monthly payments.

• Focus on paying off the loan or credit card with the highest interest rate first
• Doing this will save you lots of money in the amount of interest that you pay every month. Most credit cards carry a interest rate over 13%.
• Apply all extra income to the highest rate loan or card that you are focusing on
• Make the minimum payment on all your other lines of credit, this will help you pay off the highest rate loan or card the quickest. Spreading your money out over lots of payments does not go very far.
• Stop spending
• Sounds easy but this is the hardest one to do. Always ask yourself, "Do I need this". Just by putting $30 on your card can cost you a lot more in the long run.
• Move what you owe to a lower rate or consolidate
  
• If you have high rates on your lines of credit look around for offers with lower rates. It is easy to find a credit card company that will give you 0% for a year or 2. This is a great way to really take down your debt, because you just went from 12% to 0%. You can also consolidate multiple loans that have a higher rate to a lower rate.
  
• Look for ways to increase your monthly cash flow
• This is always tricky. The easiest way to do this is review your monthly payments such as Internet, utilities, TV and many other forms of payments and decide where you can cut the fat. You will be surprised at where you can save. Take that money you save and pay off debt or invest it.
• Ask a professional
• It is never a bad idea to get your self a financial adviser. They can help you in your situation with investing and saving money. They can also create a custom plan for you and your family.
  

Home Sales Up in February

With all the negative media focusing on the bad aspects of the financial market it is hard to hear some of the positive reports and stories that are out there.
All we hear is, the market is slow, stocks are struggling and the economy is bad. Home sales were up in February but prices of those home are down, but that is ok. The market is correcting itself. The good news is that people are still buying, selling and consumers are still able to get a mortgage.

Read the report here

What to do with your tax refund????

Yes it is tax season, and hopefully you have already filed your taxes and are waiting for your refund. The question is what are you going to do with that refund no matter how big or small it may be. Tax refunds can help you knock out some debt that you have or give you some money to invest.



Paying off debt such as credit cards and car loans is always one of the best investments that you can make. The average credit card interest rates is 13.29%, getting rid of any debt at that high rate is a great investment. Paying extra money on car, personal or recreational vehicle loans always helps you to get rid of monthly payments and reduce your over all debt.

Even if you are not a skilled investor there are many areas where you can put some money that are safe and give you a much better return then your savings account. Most banks and credit unions offer 3 month, 6 month and 1 year CD's (certificate of deposit) that carry an average interest rate of 5%. These are insured bu the FDIC and offer a great return for a small amount of money.

What ever the amount of your return is, the temptation is to buy something new or go on vacation. Remember that this money can help you get a leg up on your finances or jump start you in paying off debt.

Federal Reserve Cut Interest Rates

March 18th, 2008
The Federal Reserve cuts their rate by 3/4 a point, lowering the rate to 2.25% What does this mean to the mortgage industry? Well, we are not sure. Most of the projections that are being broadcast is that 30 year interest rates are on the rise despite the rate cut. The mortgage industry is going through multiple changes daily. What is causing all the unrest and multiple changes? Many of the banks and mortgage companies that you go to get your mortgage, will give you a initial loan for your home, they will then take your loan and file and try to sell it on what is called the "secondary market". This market is for the buying and selling of mortgages. When the buyers on this market decide to stop buying a certain type of loan or mortgage, the industry will change, so that they can create more loans that will appeal to the buyers, thus creating a change in mortgage loans that are available to the consumer.
The Federal Reserve stated that the rate cut was done to help a slowing economy and falling job market. They did not how ever state that the cut was implemented to help the real estate market or to get mortgage rates to drop. All we can due is watch to see what happens and hope that rates will not rise and hurt an already struggling real estate market.

Knowing when to buy

Tips for Homeowners

To protect your investment in your home, it’s important to perform regular maintenance. The following tips not only help you to prevent costly repairs in the future, but can also make your home more efficient, saving you money on your monthly utility bills.

1. Inspect the exterior of your home annually:
* Check the foundation for cracking.
* Check the weather stripping and caulking around doors and windows, and check for cracks and holes in the siding.
* Check the paint for peeling, cracking, fading or blistering.
* Trim shrubs and trees so they clear the foundation, exterior walls, and roof.
* Drain and shut off your outside faucets before winter.
* Clean gutters and downspouts in the fall and spring.
* Clean leaves and mulch from under porches and decks, and pull mulch away from foundation walls.

2. Check annually for water or moisture in the crawl space, as well as for water leaks in the basement or in the attic.

3. Drain a gallon or two from your hot water heater at least twice a year to extend its life expectancy.

4. Have your chimney cleaned each year before using the fireplace.

5. Check the filters on your heating/cooling unit once a month and change or clean on the recommended schedule. Have the unit serviced annually.

6. Check faucets for drips and the rest of the plumbing for leaks once a month.

7. Check your dryer vent and stove hood monthly and clean them as needed.

8. Inspect and repair tile grout in bathrooms and kitchen annually.

9. Change the batteries in your smoke alarm twice a year.

10. Make sure that you know where the main cut-off valves or switches are for the plumbing, electrical and gas systems.

Tips for Retirement

Set a Goal - "I think I can save $25 a paycheck." It's easy to procrastinate so set up a "painless" payroll deduction for saving. It doesn't matter if the money goes into a 401(k) plan, an IRA or into a plain, old-fashioned savings account, just start saving. You can start with a small amount and increase it whenever your circumstances allow - like when you get a raise, your car payments end or you get a bonus. Pay yourself now, you'll thank yourself later.

Open an IRA - IRAs are easy to get, easy to contribute to and easy to save with. Most Americans can set up an IRA - whether it's a traditional IRA or a Roth IRA - and save on taxes. Find out more about IRAs from your bank or financial institution or the resources below.

Learn About Your Employer's Retirement Plan - If you are covered under your employer's retirement plan, your employer is required to give you a plain language explanation of the plan called a "summary plan description." It describes your rights under the retirement plan. To get a summary plan description, ask the plan administrator or your employer.

Review Your Individual Benefit Statement - Your individual benefit statement shows your total plan benefits and the amount that is vested, or fully owned by you. To get an individual benefit statement, ask your plan administrator or employer.

Sign Up for 2006 401(k) Contributions - If you are covered under a 401(k) plan, you may have to designate the amount of money you want taken out of your salary and contributed to your 401(k) account by the end of 2006. The 401(k) limit is $15,000 for 2006 ($20,000 if you are 50 or older in 2006).

Take Your Required Minimum Distributions - If you are 70-1/2, you are generally required to receive a required minimum amount from your qualified retirement plan or IRA by year-end.

Review Your Social Security Statement - The Social Security Administration likely sends you a Social Security Statement each year about three months before your birthday. This statement is your personal record of earnings on which you have paid Social Security taxes and a summary of estimated benefits you and your family may receive as result of those earnings. These benefits include retirement benefits and protection in case you become disabled or die before retirement age. For more information and to request a Social Security Statement, go to www.ssa.gov.

Learn About Your Spouse's Retirement Plan - Many retirement plans provide benefits for spouses. For example, your spouse's plan may provide that you will receive an annuity unless you consent to distribution in another form. Before signing, read and understand any waiver or consent forms for your spouse's retirement plan distributions.

Buyers rights

As a home buyer you have certain rights that are yours. RESPA has a great website that has tips and information for anyone that is buying, selling or refinancing their home.
Here are some of the rights that they list. Remember, these rights are yours and will help you save money.

• You have the RIGHT to shop for the best loan for you and compare the charges of different mortgage brokers and lenders.

• You have the RIGHT to be informed about the total cost of your loan including the interest rate, points and other fees.

• You have the RIGHT to ask for a Good Faith Estimate of all loan and settlement charges before you agree to the loan and pay any fees.

• You have the RIGHT to know what fees are not refundable if you decide to cancel the loan agreement.

• You have the RIGHT to ask your mortgage broker to explain exactly what the mortgage broker will do for you.

• You have the RIGHT to know how much the mortgage broker is getting paid by you and the lender for your loan.

• You have the RIGHT to ask questions about charges and loan terms that you do not understand.

• You have the RIGHT to a credit decision that is not based on your race, color, religion, national origin, sex, marital status, age, or whether any income is from public assistance.

• You have the RIGHT to know the reason if your loan was turned down.

You have the RIGHT to ask for the HUD settlement costs booklet "Buying Your Home."

FHA- Raised Loan Limits

The bill, which passed by a vote of 93-1, seeks to make the Federal Housing Administration more relevant in the current housing and mortgage lending environment by expanding the agency, loosening some underwriting standards, and raising its current restrictive loan limit.
The FHA was established in 1934 to help borrowers, particularly those with low incomes, purchase homes by guaranteeing banks that those loans would be repaid should the borrower default. But the agency's loan limits have generally lagged behind those of Freddie Mac and Fannie Mae and as home prices climbed dramatically and lenders with looser underwriting standards proliferated the agency became less and less of a player in the mortgage market.

Top 100 places to live 2007

CNNMONEY just released their list of the top 100 places to live

Here are the top 25

Rank City Population

1 Middleton, WI 17,400

2 Hanover, NH 8,500

3 Louisville, CO 19,500

4 Lake Mary, FL 13,200

5 Claremont, CA 35,900

6 Papillion, NE 18,800

7 Milton, MA 25,700

8 Chaska, MN 22,500

9 Nether Providence (Wallingford), PA 13,600

10 Suwanee, GA 11,200

11 Sammamish, WA 40,600

12 West Goshen, PA 9,100

13 Montville, NJ 22,100

14 Apex, NC 26,300

15 Horsham, PA 15,200

16 La Palma, CA 16,100

17 Olney, MD 32,900

18 Sherwood, OR 14,800

19 Corrales, NM 9,200

20 Lisle, IL 22,300

21 Chelmsford, MA 33,800

22 Holly Springs, NC 11,800

23 Hillsborough, NJ 41,100

24 Nanuet, NY 18,200

25 Baldwin, NY 23,100

Basics of Banking

CNN Money often has great personal finance tips. This list of tips I found very helpful.

1. Money in a bank account is safe.
A bank is one of the safest places to stash your cash since your account is insured against loss by the federal government for up to $100,000 per depositor.

2. You pay for the convenience of a bank account.
Banks pay lower rates on interest-bearing accounts than brokerages and mutual fund companies that offer check-writing privileges. What's more, bank fees can be high - account costs can easily add up to $200 a year or more unless you keep a minimum required balance on deposit.

3. Inflation can eat what you earn from a bank.
Even at a low rate of inflation, the annual creep in the cost of goods and services usually outpaces what banks pay in interest-bearing accounts.

4. Not all interest rates are created equal.
Banks frequently use different methods to calculate interest. To compare how much money you'll earn from various accounts in a year, ask for each account's "annual percentage yield." Banks typically quote both interest rates and APYs, but only APYs are calculated the same way everywhere.

5. You can get better rates
Certificates of deposit (CDs) offer some of the best guaranteed rates on your money and are insured up to $100,000 each. The catch: you have to lock up your money for three months to five years or more. If interest rates fall before the CD expires, the bank is out of luck and must give you the rate it quoted. If rates climb, you're stuck with the lower rate. Also with rising interest rates, money market accounts can become an attractive option, too. They pay more than banking accounts and you don't have to lock up your money for a specific amount of time.

6. ATM fees can take a significant bite out of your budget.
The convenience of using automated teller machines is an increasingly pricey one. On average, the fee your bank charges you to use another institution's ATM is $1.37, according to a Bankrate.com survey in fall 2004. That's on top of the average $1.75 that the other institution will charge you to use its ATM.

7. Getting the best deal takes work.
You won't get a great deal on a car if you just walk into a dealer and plunk your money down. Likewise, you won't get a great banking deal unless you comparison-shop and ask about price breaks. For example, a bank might offer free checking if you are a shareholder or if you direct deposit your paycheck.

8. Use the Internet to shop for bank services.
You can use the Internet to compare fees, yields, and minimum deposit requirements nationwide. Sites like Bankrate.com allow you to search and compare the highest yields and the lowest costs on banking, savings, loans and deposit rates nationwide. You can also search by geographic location or use CNNMoney.com loan center.

9. Banking online can make bill-paying easier.
Electronic bill-paying can save you the monthly hassle of paying your bills. And if you couple online banking with a personal-finance management program, such as Quicken or Microsoft Money, you'll be able to link your banking with your budgeting and financial planning as well. But be careful. Some vendors only warn the consumer of price hikes in the fine print of a bill.

10. You can bank without a bank.
A number of financial institutions offer accounts that resemble bank services. The most common: Credit union accounts; mutual fund company money market funds; and brokerage cash-management accounts.

Tips for Increasing Your Credit Score

Having a good credit score is becoming more and more important. It determines interest rates and loans that we can and can not qualify for. Here are few tips that will help you raise your credit score. (These tips came from myfico.com)

-Payment History Tips

Pay your bills on time- Delinquent payments and collections can have a major negative impact on your FICO score.
If you have missed payments, get current and stay current.The longer you pay your bills on time, the better your credit score.

Be aware that paying off a collection account will not remove it from your credit report- It will stay on your report for seven years.

If you are having trouble making ends meet, contact your creditors or see a legitimate credit counselor.- This won't improve your credit score immediately, but if you can begin to manage your credit and pay on time, your score will get better over time.

-Amounts Owed Tips

Keep balances low on credit cards and other “revolving credit”.High outstanding debt can affect a credit score.

Pay off debt rather than moving it around.The most effective way to improve your credit score in this area is by paying down your revolving credit. In fact, owing the same amount but having fewer open accounts may lower your score.

Don't close unused credit cards as a short-term strategy to raise your score.
Don't open a number of new credit cards that you don't need, just to increase your available credit.This approach could backfire and actually lower your credit score.

-Length of Credit History Tips

If you have been managing credit for a short time, don't open a lot of new accounts too rapidly.New accounts will lower your average account age, which will have a larger effect on your score if you don't have a lot of other credit information. Also, rapid account buildup can look risky if you are a new credit user.

-New Credit Tips

Do your rate shopping for a given loan within a focused period of time.FICO scores distinguish between a search for a single loan and a search for many new credit lines, in part by the length of time over which inquiries occur.

Re-establish your credit history if you have had problems.Opening new accounts responsibly and paying them off on time will raise your credit score in the long term.
Note that it's OK to request and check your own credit report.This won't affect your score, as long as you order your credit report directly from the credit reporting agency or through an organization authorized to provide credit reports to consumers.

-Types of Credit Use Tips

Apply for and open new credit accounts only as needed.Don't open accounts just to have a better credit mix - it probably won't raise your credit score.
Have credit cards - but manage them responsibly.In general, having credit cards and installment loans (and paying timely payments) will raise your credit score. Someone with no credit cards, for example, tends to be higher risk than someone who has managed credit cards responsibly.
Note that closing an account doesn't make it go away.A closed account will still show up on your credit report, and may be considered by the score.

The Changing Mortgage Market

There are many changes that take place in the mortgage and loan industry ti keep banks, lenders and invester on the same track and to keep the market stable. In the past changes to loan products, interest rates and bank lending regulations only came every once in a while, but lately these changes are happening every day. These changes effect borrowers and buyers who are in the proccess of purchaing or refinancing. The changes are both positive and negative to the consumer. Positve in a way that lenders are making certain that there will not be another mortage meltdown and bundles of foreclosures. Also positive becuause rates are dropping daily. The negative effect is not seen by all, but is there and very costly to some. Those looking to invest in Real Estate and others that are in different ARM loans. Many of the loans that were avaliable months ago do not exist anymore. This causes some borrowers to look for new loan products and change their investment strategy. While from the outside these changes look safe and good for the market, it has a deep impact on those investors and borrowers that have been paying on the ARM loans for years and helping the market by purchasing, renting and re-selling properties.