Penny Wise

2006-12-29T02:56:00.000-08:00

Free Credit Report - Check your personal credit report and score today for FREE.

2006-12-08T01:41:00.000-08:00

A DOLLAR BILL

Santa Claus, the tooth fairy, an honest lawyer and an old drunk are walking down the street together when they simultaneously spot a hundred dollar bill. Who gets it?

The old drunk, of course; the other three are mythological creatures.

HA HA HA HA....................... btw it was for a laugh:-)

2006-12-08T01:00:00.000-08:00

SOME HOME IMPROVEMENT RESOURCES

It's Christmas time and many of us are looking at renovating or making additions to our homes and gardens.

Home owners can either do this stuff on their own or hire professionals.

It can range form getting your wall papers changed to any thing like upgrading your bathrooms and kitchen......almost everything you can think of .

http://www.doityourself.com/
http://www.homedepot.com
http://www.hometime.com/
http://www.bhg.com/bhg/category.jhtml?catref=cat10002

2006-12-06T04:47:00.000-08:00

Reverse Mortgage Info

Understanding and Selecting Reverse Mortgages

What’s a reverse mortgage? In a nutshell, it’s this. In a regular mortgage, you make monthly payments to the lender. But in a “reverse” mortgage, you receive money from the lender and generally don’t have to pay it back for as long as you live in your home. Instead, the loan must be repaid when you die, sell your home, or no longer live there as your principal residence. Reverse mortgages can help homeowners who are house-rich but cash-poor; they have become an important resource to our senior population.

There are three versions of the reverse mortgage. They include single-purpose reverse mortgages, which are offered by some state and local government agencies and nonprofit organizations; Home Equity Conversion Mortgages (HECMs) which are a federally insured HUD product; and proprietary reverse mortgages, which are issued by commercial mortgage lenders.

Single-purpose reverse mortgages are not available everywhere. In states and cities that offer them, they are a very low cost arrangement and usually available only to low and moderated income households. However they can only be used for one purpose specified by the government or nonprofit lender – for example, to pay for home repairs, improvements, or property taxes.

There are no limitations on the use of funds generated by HECMs or proprietary reverse mortgages, and they are available everywhere. They are more expensive than single-purpose reverse mortgages and their up-front costs can be high. The amount you can borrow with either of these models depends on a number of factors but generally speaking, the older you are and the more equity you hold in the home the more you can borrow.

One of the primary differences between an HECM or private reverse mortgage and a refinance loan is that reverse mortgage loan advances are not taxable and generally do not affect Social Security or Medicare benefits. You retain the title to your home and do not have to make monthly repayments. The loan must be repaid when the last surviving borrower dies, sells the home, or no longer lives in the home as a principal residence.

Some of the facts to keep in mind about these loans:

Lenders not only charge origination fees and other closing costs for a reverse mortgage but may also charge servicing fees during the term of the mortgage.
The amount you owe on a reverse mortgage generally grows over time. Interest is usually a variable rate and is charged on the outstanding balance and added to the amount you owe each month.

Reverse mortgages can use up all or some of the equity in your home, leaving fewer assets for you and your heirs.
Because you retain title to your home, you remain responsible for property taxes, insurance, utilities, fuel, maintenance, and other expenses.
Interest on reverse mortgages is not deductible on income tax returns until the loan is paid off in part or whole.

There are enough pitfalls in reverse mortgages that in the case of an HECM, HUD requires that you meet with a counselor from an independent government-approved housing counseling agency. The counselor must explain the loan’s costs, financial implications, and alternatives. This is a tremendous resource. Shop the loan market all you want, but take what you find to a counselor who can walk you through all your options and compare them, side by side.

2006-12-06T04:35:00.000-08:00

Reverse Mortgage Counseling

Avoiding Reverse Mortgage Scams

Reverse mortgages are gaining in popularity as more senior's start looking for ways to supplement their retirement incomes. And as the interest in reverse mortgages increase, so are the cases of reverse mortgage fraud and scams. Many seniors are finding that they have lost thousands dollars of their hard earned equity to these reverse mortgages scams. Since reverse mortgages typically involve our largest asset (your home), this type of fraud can have a serious negative impact on your retirement. The following reverse mortgage fraud information will help you avoid becoming a victim of a reverse mortgage scam.

Reverse Mortgage Scams

There are several types of reverse mortgage scams that can end up costing you thousands and even tens of thousands of dollars in equity in your home if you become a victim.

Charging for free information on reverse mortgages

Several estate planning companies have been charging thousands of dollars for information provided free from HUD. Typically these companies charge for this information as part of an estate planning program. Seniors that sign up for these programs are unaware that these firms are collecting thousands of dollars by charging a fee of 6 to 10 percent of the total amount borrowed. These fees cost the victims $6,000 to $10,000 on a $100,000 reverse mortgage. HUD has recently issued a directive to lenders that issued reverse mortgages insured by the Federal Housing Administration (FHA) to stop doing business with these companies.

Pushing reverse mortgages as a way to pay for purchases

Some companies that sell large ticket items or services, like annuities or insurance products, may try to suggest using a reverse mortgage as a way fund these purchases. When the additional cost of the reverse mortgage is factored into the purchase, it ends up costing the homeowner much more than the benefit provided by the product or service.

Unethical reverse mortgage terms

Some lenders slip in excessive fees and terms into their contracts. These terms can have a serious effect on a senior’s equity. In some cases, lenders have used shared equity or shared appreciation terms, which gives the lender the right to collect a portion of the appreciation when the home is sold or refinanced. The cost of these type provisions can run into the tens of thousands as the home appreciates. These rising cost provisions eat up equity without providing any additional benefit to the homeowner.

Protecting yourself from reverse mortgage scams

If you are looking into reverse mortgages, there are several things that you can do to

protect yourself from falling victim to these types of scams.

Speak with a HUD approved reverse mortgage counselor. The counselor will help you understand reverse mortgages and help you evaluate your situation.
Obtain several offers from different reverse mortgage lenders in order to compare different options. The rule of thumb is to get at least three separate offers so that you have a good comparison of the terms offered.
Make sure you understand all the terms and conditions within the reverse mortgage contracts. Your reverse mortgage counselor can guide you through the contracts.
You generally have three business days after signing the loan document to cancel it for any reason.

If you suspect that a company is operating in violation of the law, let your reverse mortgage counselor know and then file a complaint with your State Attorney General's office or banking regulatory agency and the Federal Trade Commission (FTC) at www.ftc.gov.

2006-12-04T04:35:00.000-08:00

Home Refinance Dos

Refinancing your home mortgage can be a great decision- if it saves you money! A homeowner naturally would not refinance if a new mortgage cost him or her more money than it saved, but a good offer, and a quick decision without looking at the long term effect can be a detrimental action, and could actually cost the homeowner more than the original mortgage! Lenders are in the business of making more money, so don't expect all of them to be honest and do the future comparison for you.

So you are considering refinancing because you believe you can get a better monthly payment, a lower interest rate or a shorter term loan that you could pay off more quickly and own your home sooner than your original loan. These are all good reasons to refinance.

As a general rule, you should not refinance if the "safe margin" of balancing costs of refinancing against savings is less than two percentage points higher than the current market rate. You also need to determine how much longer you are going to be in the house. It takes about 3-5 years to realize the savings, given the costs, when you refinance.

Other factors that may make you want to refinance are getting a fixed rate loan as opposed to a variable rate, converting to an adjustable rate loan with more protective features such as lower cap rates, or remove cash from the equity built in your home.

Refinancing usually involves the homeowner to pay off the original mortgage, and sign for a new one with better conditions, whatever that may be for that specific homeowner. Keep in mind that there may be costs attributed to paying a mortgage off early, which are called prepayment penalties. If you are paying off your first mortgage early, the lenders may charge penalty fees which basically gives them their interest that would be paid if the mortgage were carried out for the life of the loan. You may be able to add the closing costs to the new mortgage and still have a smaller mortgage than the original one.

In order to decide if refinancing is right for you, you absolutely must compare the original loan and new loan based on the future! The future period should be how long you expect to keep the new loan. If the total costs of the new mortgage are less than the current mortgage, then, and only then would you refinance.

As in any mortgage, you must look at the annual percentage rate and fees. You have to make sure that the total costs of financing a new mortgage will be less than the total savings in interest. To cut refinancing costs, you may ask for no money upfront and then take a higher interest rate, leading to a higher monthly payment. But if it is still less than the current mortgage, you could definitely consider this as an option and not have to come up with a large upfront sum.

Always do your due diligence when considering financial changes. Be sure to have the lender disclose all information to you and leave nothing unclear. If you need help or clarification on information, ask for a professional for help! The use of a financial calculator can also be useful. If it has been a while since you have dealt in the mortgage industry, read up on new laws, current market rates and interest rates, and other pertinent information that allow you to be educated in the decision making process. There is a lot of information available to you, and make sure it is correct by running it by a trusted source.

2006-11-30T01:06:00.000-08:00

HOME REFINANCE

Paying off one loan through the means of obtaining another; refinancing is a way to secure a lower interest rate.

Advantages

1- Refinancing can have lower interest rate

Refinancing a mortgage or other type of loan can change the loan to a lower interest rate. Alternately, refinancing can be used to transform available equity in one's house into ready cash, available for other purposes or expenses.

2- Refinacing can be used to reduce risk associated with ARM

Interest rates on adjustable-rate loans and mortgages shift up and down By refinancing an adjustable-rate mortgage into a fixed-rate one, the risk of interest rates increasing dramatically is removed, thus ensuring a steady interest rate over time.

3- It is tax- deductible

Finally, refinancing a loan or a series of debts can assist in paying off high-interest debt such as credit card debt, with lower-interest debt such as that of a fixed-rate home mortgage. In addition, non-tax deductable debt, such as credit card or car loan debt, can be transformed into tax-deductable debt such as home mortgage debt, potentially lowering one's taxes or shifting one into a more advantageous tax bracket.

Disadvantages

1-Certain loans contain penalty clauses triggered by an early paymentof the loan.

2- In addition, there are also closing and transaction fees typically associated with refinancing a loan or mortgage.

Decision on whether or not to refinance should be taken very carefuly.

home refinance

2006-11-29T20:39:00.000-08:00

Penny Wise

2006-11-22T22:18:00.000-08:00

2006-11-05T01:02:00.000-08:00

AUTO INSURANCE QUOTES

Auto insurance is needed to safe your vehicals from thefts and accidents.

For free auto insurance quotes visit: -
1. www.insure.com/
2. www.usaa.com
3. www.esurance.com
4. www.progressive.com/

2006-11-02T00:11:00.000-08:00

AUTO INSURANCE BUYING TIPS

SOME OBSERVATIONS

1. Males pay more than females.

2. Middle-aged pay less than the young or the old (ages 25 and 56 seem to be a significant landmarks).

3. If you want to decrease your rates, it certainly helps to move to a better neighborhood (less theft and/or traffic congestion) or get married (only responsible people tie the knot, right?), but those endeavors come with their own costs. 4. As far as choosing a car, dullness pays. The lowest rates go to the most innocuous vehicle types – minivans and low/mid-priced sedans – because of what they imply about their drivers: mild personalities make for mild risks.

5. Another force at work is how much damage one vehicle can do to another, where battering ram-like trucks and SUVs do not fare well. These factors mostly impact liability, which, in 45 states, is the mandatory piece in the insurance equation. On the flip side, ultra-cheap lightweights like the Kia Rio don’t have stellar rates either, for a related reason: they do a mediocre job of protecting you, the driver. 6. Another major point is the cost of the car, which should be self-explanatory. This impacts collision coverage, which covers repairs to your car. It also lowers another type of coverage called comprehensive, which basically covers your car in any loss that doesn’t involve crashing.

7. Another good way to lower comprehensive is to pick a car with a low theft rate. Put another way, drive a car that no one else wants. Case in point: a recent study found the Ford Taurus wagon and Saturn LS at the bottom of the theft list.

8. Differences within a class are largely due to the cost to repair specific cars, which has a lot to do with how they were designed. Some models show more variation between different providers than others, though it could be awfully time-consuming to check every single car across every single provider.

9. Don’t crash. The label of “high-risk driver” stains your record, typically for about three years.

10. Think hard about which incidents to report. Even if you do crash, it might not be financially worthwhile to make a claim. Make sure you have a big enough claim (say, at least several hundred) before you file.

11. Don’t get tickets. Insurance companies look for any excuse to raise those premiums, of which tickets are the most common and reviled.

12. Don’t over-drive. Risk increases with exposure and premiums increase with risk, so if you can, don’t drive more miles per year than you have to. Don’t get too caught up in this point, though; it’s broken down by brackets of every few thousand miles, the impact isn’t tremendous, and there isn’t always a discount for driving below average.

13. Cover your kids under your policy. They’ll save a bundle, as will you, thanks to the standard practice of giving discounts for insuring multiple cars on one policy. Try to not make those risk-prone minors the stated primary driver of any car – especially an expensive one.

14. Get a car packed with safety features like air bags, antilock brakes, traction control, and stability control. Front air bags have been the norm since the ‘90s, but side and curtain air bags have not, and they have been found to help more and more with each passing year. Some companies began retracting antilock brake discounts after research failed to illustrate any safety benefits through cold, hard statistics. But some still do (some states make them), and antilock brakes are worthwhile to have in any case. Stability control, meanwhile, just got a big publicity boost from a September 2004 study finding that it reduces fatal accidents by 30% in cars and 67% in SUVs.

15. Shop around for the best carrier. Many consumers stick with the same insurance company for life (probably out of laziness), but they could be missing out on hundreds per year. Once you’ve found an ideal match, however, try to stick around, because loyalty discounts eventually kick in. Pay your bills. It might not seem fair, but at many companies, insurance premiums vary with credit scores. The thinking is that someone irresponsible with money would be irresponsible behind the wheel. This has aroused all sorts of controversy and backlash. Various accusations have been fired – of it being unfair, illogical, anti-consumer, or segregative – but until this is resolved, try to master your MasterCard.

16. Do your homework. Literally. This can give a much-needed discount for drivers who are stuck with the lowest incomes and the highest rates: students. Maintaining a 3.0 GPA is the common requirement, and maintaining is a must, since applicants will be prompted to send in annual proof of their good study habits.

17. Take a class. A certified driver training or defensive driving class can lower your rates.

2006-10-30T22:35:00.000-08:00

Its great to be back from my short vacation.
On my trip back some one just enquired if I was a true environmentalist.

Well..... I don't cut trees....don't burn up waste........and have started using bio-degradeable bags off late. I pondered over the question for a while and came up with a bearly audible..'yes'.

He was an average looking, strangely dressed up freaky looking indivodual you usually see on sci-fi movies.

"Do you know maam" he continued, "according to the United States Government, the largest single user of energy in America, approximately 26 power plants around the nation are needed just to power the energy vampires".

"Energy vampires?" "whats that" I enquired, visibly bored with all those fictious words.

"Vampires typically consume anywhere from four to seven watts per hour." he spoke up seeming not keen to answer my question.

"Power devices that keep electronics and appliances on "standby" for immediate use and maintain memory functions in devices like video recorders and alarm clocks. Vampires draw energy even when the device is not in use." He said.... and pulled out a cell phone from his cream colored fabric bag and also its charger. Shaking the cell phone charger in his hand" he continued

"Some vampires, such as this cell phone chargers, draw energy whenever they are plugged in, even when they are not connected to a phone.

This guy seems to have made apoint here.

Vampires typically consume anywhere from four to seven watts per hour. "Vampire Slayers" are more efficient devices that use less than one watt per hour. If more devices used vampire slayers, we could save billions of kilowatt-hours per year. If the nation as a whole moved to one-watt standby power devices, it's estimated we would need 20 fewer power plants and American households could save between $1 billion and $2 billion on energy bills.

So lets try and save energy folks.....

We can pay our bills so easily at some online portals that there is no need of worrying about any thing

2006-10-12T00:41:00.000-07:00

FREQUENTLY ASKED QUESTIONS ON MORTGAGE

How much can I afford to borrow?
How much home you can afford depends on the area you want to live, your income, your debt, your credit rating, and other financial factors that determine the size and type of mortgage you are applying for.
How much will my mortgage payments be?
The rule of thumb is to put down 5%, 10%, or 20% of the sale price. The more money you put down, the lower your mortgage payments will be.
Which is better: a 15 or 30 year loan term?
A credit check gives you an idea if your credit is strong enough to afford and maintain a mortgage. Without a credit check, you have no idea if your credit is stable enough to qualify for a loan.
Does it make sense for me to refinance?
Refinancing makes sense if current interest-rates are lower than the rate you are currently paying, you still have significant years left on your mortgage, and the cost to refinance does not outweigh the benefits of refinancing.
Which documents will a lender typically require to process my home refinance?
The documentation you’ll need for your home refinance include any income documents (30 days worth of pay stubs, past 2 W-2s, etc), payment slips (mortgages paid off, lingering debt), a copy of your homeowners insurance, and asset statements (checking/savings account statements, 401K, stocks).

Which closing costs associated with my home refinance are tax deductible?You should start by assessing your income, fixed (regular) expenses, and variable expenses which include clothing and entertainment. After doing this you should be able to determine the extent of your need. Debt consolidation counseling is also available for more comprehensive assistance.
How does debt consolidation work?
Usually done in consultation with a counselor, borrowers may reduce the sum of their payments by assessing the financial condition of the borrower and realistically calculating a payment plan.

If you are buying a home for the first time and want to have your doubts cleared on the subject you can read
'First Time Home Buyers Information'

2006-10-10T11:02:00.000-07:00

Debt Consolidation Tips

For a growing number of Americans, debt is a serious problem, and one that can "sneak up" on you. The first step toward controlling your debt is being aware of it. Once you've established that you need to consolidate and pay down your debt, the following ten possibilities may be useful to you.

10. If you have a 401-K or other employer-sponsored retirement account, borrow part of the money to pay down your debt. This should be used as a last resort, however. If you cannot pay the money back within five years, you will be assessed the taxes and penalties associated with the early withdrawal of the funds.

9. If you have life insurance, borrow money against your policy. Strictly speaking, you don't ever have to pay the amount back if you can't or don't want to, but it will be deducted from the amount paid to your beneficiaries. For this reason, planning to pay the money back is advisable.

8. Borrow the money from family or friends. It probably will save you interest, but the list of associated problems can include the potential for damaged personal relationships, the expectation of a return of the favor years down the road even after what you borrowed has been repaid, and the possibility of legal action against you by someone who was previously a good friend or close family member.

7. Consult a debt consolidation service. Make sure you're working with a service that does not charge you high fees. Check with your local Better Business Bureau or other consumer protection agency. You'll likely sacrifice two things to work with a debt consolidation service: your freedom to open and use additional credit lines and, in many cases, your credit rating. The service will usually ask you to make one monthly payment that it will then use to pay your creditors.There are two main types, debt settlement and credit counseling.

Debt settlement can hurt your credit score, but will lower your monthly payments and save you the most money without filing bankruptcy. Credit counseling lowers your interest rates and your monthly payments by less. Click here for more on debt help

6. Renegotiate with your creditors. Your creditors may require that you incur no additional debt while working to pay off what you've already accrued. And they are under no obligation to agree to renegotiation; however, it is often to their advantage as well, since it means they will eventually collect.

5. Sick of getting those introductory 0% interest credit card offers in the mail? Before you throw the next one away, consider how much interest you could save by consolidating all your debt onto a new card. Be very careful, though. If you continually open new cards and close older ones, you're not helping your credit rating. If you would like to consolidate all your debt onto a single card, consider keeping at least one of your older cards open with a small balance as well.

4. Do you own a car, boat, motorcycle, etc. with a free and clear title? If so, take out a title loan. Make sure you're getting the rate you want. Also, be certain you understand the terms (will you get to keep your car, boat, or other collateral, or will you have to turn it over to the lender for the term of the loan?). Get a clear idea of the payment schedule, as failure to meet any of the terms may leave you without ownership of your property.

or will you have to turn it over to the lender for the term of the loan?). Get a clear idea of the payment schedule, as failure to meet any of the terms may leave you without ownership of your property.

3. Take out a personal or signature loan. Weigh this option carefully, as the interest rate on this type of loan may not be significantly lower than what you're already paying.

2. Refinance your home and take cash out at closing. This will help you pay down your high-interest debt without too much difficulty, and can be tax deductible. It saves you money and gets you a lower monthly payment. Just make sure that there is no possibility of missing a payment, because you don't want to face a foreclosure because you transferred too much unsecured debt to secured debt.

1. If you own your home and have enough equity in it, take out a home equity loan or line of credit. Not only can you use the money for anything you would like, including debt consolidation, but the interest you pay on the loan will be tax-deductible so you will save in more than one way.

While some of these options may be more desirable than others, and most come with their own set of complications and consequences, keep in mind that they are likely preferable to continuing to struggle with unmanageable debt.