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.