I know that I have informed you that the first-time homebuyer tax credit was extended and expanded to include existing homeowners. I'm sure you also know that interest rates are at an all-time low. Interest rates are currently hanging in there below five percent fixed for most scenarios. Something you may not know is that the Federal Reserve has already bought over $1 trillion in mortgage-backed securities of the announced $1.25 trillion total they agreed to buy earlier this year. When the Fed mortgage market support ends, rates will probably rise quickly. My advice to you is to make hay while the rates shine. Whether buying a new home or refinancing your existing mortgage, NOW is the time!
The following example bears out the fact that waiting will do nothing more than cost you money. The principal and interest payment on a $300,000 mortgage at a 4.75% interest rate and amortized over 30 years is $1,564.94. If interest rates were to move up to 6.0%, the payment on that same $300,000 mortgage would be $1,798.65. Thus, a buyer or borrower who is currently qualified for a $300,000 loan with interest at 4.75% would only be able to borrow or refinance approximately $255,000. The slight increase in interest rate from 4.75% to 6.0% decreases your buying or refinancing qualifications by $45,000. If interest rates were to increase to 7.0%, a buyer or borrower would have their qualifications reduced by more than $65,000. They lose 22% of their buying power if they wait...that's a BUNCH!
Jumbo loans, those in excess of $417,000, are currently at slightly over 6.0% interest and are much more difficult to qualify for than a conforming conventional, FHA or VA loan.
Great news! Tonight, the Senate is voting to extend the Homebuyer Tax Credit through April 30, 2010. As drafted, the tax credit will apply to ALL, not just first-time homebuyers. The move-up buyers must have been in their current residence for a minimum of three years. The income limitation for a since buyer is $125,000, and $225,000 for married couples filing a joint tax return. I don't know any additional details but I'm sure you'll all get it after a positive vote!
Credit scores don't change each passing day. Like a book on a shelf, they're only good when someone uses them. Yet they are very much like your reputation. They can be trashed in one crazy night. And it takes a lot longer to recover than it does to ruin,
The folks at Fair Isaacs, where the FICO score comes from, note that today's gold standard is 750, not the 720 that once was.
Two factors drive down a score: major delinquencies or foreclosures, and the amount of credit that you use. Delinquencies will kill a credit score longer than any other problem and will haunt you for the seven years they are allowed to remain by law. However, the impact diminished with each passing year as long as you do the right things: pay on time, keep balances low, and take on new credit only when you need it.
If you've maxed your charge accounts, what you owe is roughly figured into a third of your score, so maxing out puts it way down. But there's a quick fix: pay it down quickly, and that score pops up like a bobbler in water.
FICO scores look at three parameters: frequency, or how many delinquencies you have; severity, or how late the payments are; and recency, or how close they are to the day your score is figured.
The biggest thing to avoid is closing accounts. That will only drive down the amount of credit you have, closing the gap with the amount of credit you've used. That's bad.
What else? The new cards that will inevitably be offered during the holiday season. Will that additional 10 percent discount you get for a new account really make or break your finances?
Making the decision to move a parent into an assisted living facility can be difficult for the whole family.
Change Can Be Hard for Older Adults Moving into an assisted living facility can be hard for older adults, especially if they are accustomed to being independent and maintaining their own homes. The thought of leaving a beloved home that holds many years of memories can bring sadness and grief.
Children See Their Parents the Way They Were Before The decision to choose an assisted living facility can be just as hard for the children of aging parents as it is for the parents. In her work as a marketing counselor for a continuing care retirement community, Paulette Kaufman says she is amazed at how many children continue to see their parents as the strong, in-charge people they were 30 years ago. "They are accustomed to seeing their parents provide help and support," she says, "and they truly fear seeing their mother or father struggling."
Son Saw His Father as More Competent Than He Was Kaufman described meeting a son who brought his father to tour the independent living neighborhood, which is designed for active seniors.
"On the phone, I asked him how his father was managing at home," she says. "His reply was confident: ‘My Dad is fine, and does everything for himself.'"
On the day of the appointment, Kaufman saw that the parent was a frail, unshaven man, wearing a warm-up suit that needed washing. His bright eyes sparkled, however, and he gave Kaufman a big smile and a warm greeting.
As they walked down the hall, the older man confided to Kaufman that his legs were too weak to walk far, and Kaufman knew he needed assisted living, where the rooms and distances are more manageable, and 24-hour personal care is available.
"I turned to the son and explained that as our parents age, sometimes they need extra care and assistance," Kaufman says. "Everyone wants their parents to live independently as long as possible, but the ability to make good decisions and to care for one's self can slowly decline." Kaufman adds that if an emergency arises, it's important to have another caring adult nearby.
After touring the assisted living facility, the older man smiled and said, "This is more like it." When the father went to the restroom, his son looked at Kaufman and said, "I just had no idea he was so frail."
Children Often Overlook Signs of Decline in Their Parents Kaufman says that this scenario is common. "The son always saw his dad as the strong father figure of years ago," she says. "After a bit of probing, some of my questions revealed signs he hadn't seen, like recent weight loss, and uneaten meals in the refrigerator.
"It was difficult for this loving son to acknowledge that his father had aged and needed assistance with daily tasks," she says. "A tear came to the son's eyes as he realized he had been in denial, and that he wasn't helping his father in the right way."
Is Your Parent Ready for Assisted Living? Ask Yourself These Questions It's easy to overlook signs of decline in older adults, so Kaufman suggests asking yourself the following questions to help you determine if your parent is ready for assisted living:
Is your parent telling you that he is eating, but you're seeing food go bad in the refrigerator?
Is s/he covering up bruises from falling that s/he doesn't want you to see?
Have you seen your parent wearing the same clothes when you go to visit?
Does s/he hear strange noises in the night?
When you look around the house or yard, is it as neat and clean as it used to be?
Is your parent able to take medications correctly?
Does your parent respond appropriately to an emergency?
When you really look at your parent, do you see the bright and vibrant person from years ago, or do you see a more limited person who needs some help one hour a day, three hours a day, or around the clock?
Kaufman stresses the importance of adult children being able to recognize when their parents need help. While making the decision to move to an assisted living facility can be difficult, adult children have a responsibility to ensure that their parents are properly cared for, comfortable, and secure.
When the economy is uncertain, homeowners may want to try to save a few dollars by selling their homes themselves. But, a slower market is actually the best time to have an experienced professional on your team.
1. Real estate is one of the largest financial transactions you can make, usually dealing with hundreds of thousands of dollars. If you had a $100,000 tax or legal issue, wouldn't you want to work with a tax professional or an attorney? In the same way, an experienced Realtor can provide you with expertise to handle your valuable transaction.
2. Your Realtor can suggest repairs and cosmetic work that may increase the value of your home.
3. According to NAR's 2005 Profile of Home Buyers and Sellers, the home price for sellers who use an agent is 16% higher than those who don't. Trust a professional Realtor to help you set and negotiate the best price for your home.
4. Your Realtor will market and promote your property to other agents and to the public.
5. Your Realtor can help you select a professional and reputable appraiser, inspector, and title company based on best value and best service.
6. Your Realtor will communicate for you with all other parties to the transaction.
7. Your Realtor can save you time and money by coordinating inspections, appraisals, and contingency dates.
8. Difficult situations often arise in a real estate transaction. The typical home sale today involves more than 20 steps after the initial contract is accepted to complete the transaction. A professional Realtor can help you resolve any issues that come up during the process.
9. Your Realtor helps you draw up the contract and negotiate the offer and counteroffers for you.
10. The amount of paperwork involved in a real estate transaction can be daunting. From the initial sales agreement to the closing, your Realtor can assist you in understanding the documents and filling them out so they are legally binding.
Denver is second only to Orlando, Florida for lowest home utility/services bills in the country, according to the WhiteFence Index for January.
Orlando has the lowest average for home phone, internet, television, electricity and natural gas, with costs of $247.01. Denver is the next lowest at $251.23. Baltimore is the highest at $371.65.
· To dispute information in your report, call the phone number provided on your credit report.
· To opt our of pre-approved offers of credit and marketing lists, call 800-680-7293 or 888-5OPTOUT or write to P.O. Box 97328, Jackson, MS. 39238.
Contact all creditors with whom your name or identifying data have been fraudulently used. For example, you may need to contact your long distance telephone company if your long-distance calling card has been stolen or you find fraudulent charges on your bill.
Contact all financial institutions where you have accounts that an identity thief has taken over or that have been created in your name but without your knowledge. You may need to cancel those accounts, place stop payment orders on any outstanding checks that may not have cleared, and change your Automated Teller Machine (ATM) card, account and Personal Identification Number (PIN).
Contact the major check verification companies (listed in the CalPIRG-Privacy Rights Clearinghouse checklist) if you have had checks stolen or bank accounts set up by an identity thief. In particular, if you know that a particular merchant has received a check stolen from you, contact the verification company that the merchant uses:
The signs can vary, but typical indicators of fraud and/or stolen identity include:
· One of your creditors informs you that they have received an application for credit with your name and Social Security number.
· Incoming calls or letters stating that you have been approved or denied by a creditor to which you never applied.
· You receive credit card, utility, or telephone statements in your name and address for which you never applied.
· You no longer receive your credit card statements, or notice that not all of your mail is delivered to you.
· A collection agency tells you they are collecting for a defaulted account established with your identity, but you never opened the account.
If you think you have become a victim of identity theft, or fraud, act immediately to minimize the damage to your funds, financial accounts and credit report.
Below is a list of some actions that you should take right away:
Contact the Federal Trade Commission (FTC) to report the situation:
By telephone toll-free at 1-877-ID-THEFT (877-438-4338 or TDD at 202-326-2502), or
By mail to Consumer Response Center, FTC, 600 Pennsylvania Avenue, N.W., Washington, DC 20580.
Under the Identity Theft and Assumption Deterrence Act, the Federal Trade Commission is responsible for receiving and processing complaints from people who believe they may be victims of identity theft, providing informational materials to those people, referring those complaints to appropriate entities, including the major credit reporting agencies and law enforcement agencies. For further information, please check the FTC's identity theft web pages. You can also call your local office of the FBI or the U.S. Secret Service to report crimes relating to identity theft and fraud.
You may also need to contact other agencies for other types of identity theft.
1. Your local office of the Postal Inspection Service if you suspect that an identity thief has submitted a change-of-address form with the Post Office to redirect your mail, or has used the mail to commit frauds involving your identity.
2. The Social Security Administration if you suspect that your Social Security number is being fraudulently used (call 800-269-0271 to report the fraud.)
3. The Internal Revenue Service if you suspect the improper use of identification information in connection with tax violations (call 1-800-829-0433 to report the violation.)
There are several ways you can help prevent fraud and identity theft.
· Destroy private records and statements. Tear up or shred credit card statements, solicitations and other private documents that contain private financial information. Any information you keep, be sure to keep in a secure place.
· Secure your mail. Empty your mailbox quickly, or get a PO box so criminals don't have a chance to steal credit card pitches. Never mail outgoing bill payments and checks from home. They can be stolen from your mailbox and the payee's name erased with solvents. Mail them from the post office or another secure location.
· Safeguard your Social Security Number. Never carry your card with you, or any other card that may have your number, like a health insurance card. And don't put your number on your checks. It's the primary target for identity thieves because it gives them access to your credit report and bank accounts.
· Don't leave a paper trail. Never leave ATM, credit card or gas station receipts behind.
· Never let your credit card out of your sight. Worried about credit card skimming? Always keep an eye on your card, or, when that's not possible, pay with cash.
· Know who you're dealing with. Whenever anyone contacts you asking for private identity or financial information, make no response other than to find out who they are, what company they represent and the reason for the call. If you think the request is legitimate, contact the company yourself and confirm what you were told before revealing any of your personal data.
· Take your name off marketers' hit lists. In addition to the national "Do-Not-Call registry 1-888-832-1222, you can also cut down on junk mail and opt out of credit card solicitations by calling 1-888-5-OPT OUT.
· Be more defensive with personal information. Ask Sales people and others if information such as a Social Security or driver's license number is absolutely necessary. Ask anyone who does require your Social Security number - for instance, your insurance company - what their privacy policy is and whether you can arrange for the organization not to share you information with anyone else.
· Review your credit card statements carefully. Make sure you recognize the merchants, locations and purchases listed before paying the bill. If you don't need or use department-store or bank-issued cards, consider closing the accounts.
· Guard your information. Do not give out your account numbers, login information or passwords for online transactions to others.
· Know your delivery dates. Know when your account and bank statements come to you by mail, and contact the account holders or banks when you do not receive them by the usual dates.
· Beware of unencrypted websites. Make sure you do not send your credit card information for online purchases through websites that are not secured & encrypted, or by mail.
· Watch your ATM card. Be aware of those behind you when using the ATM machine; guard viewing access to your pin entry.
· Don't fall for telephone solicitations. Do not give your credit card, Social Security number or other personal information to telephone solicitors. If you are interested in the product, research the company and it's product first and call them back to order if legitimate. Do not give any personal information over the phone in exchange for the promise of "winning" anything.
· Email solicitations. If you receive an email directing you to the website of a company with which to do business, requesting for you to provide account numbers or other private information, do not provide the information. Contact the company directly to determine the legitimacy of such a request.
· Be careful where you write your information down. Do not write account information or pin numbers on cards or places whereby a thief may be able to access both credit cards and pin numbers in the same theft - for example do not write your pin number on the backs of your credit or ATM cards.
Fraud costs the American economy millions of dollars per year in losses. Between January and December, 2006, the Federal Trade Commission received over half a million consumer fraud identity theft complaints, with losses of over $400 million reported. The losses affect consumer savings accounts, retirements and the ability to purchase homes. Bank accounts have been emptied with no recourse. Increased e-commerce from the rise in Internet use has opened the doors for easier fraud perpetration. While companies involved in information technology have invested in increased security, fraud prevention is a continuing battle requiring the awareness of both consumers and businesses. The good news is that there are simple steps you can take to help prevent unauthorized access to your information and finances. Although fraud can take many forms, our advice will be mainly focused on the types that most affect credit reports and scores.
Common types of fraud
1. Identity theft: Identity thieves gain access to information that allows them to pose as someone else. They may steal boxes of checks, bank statements or other mail from a mailbox; steal a wallet or purse and use the information to open new accounts, as well as spend on existing credit cards or checks; or extend a fraudulent offer to you via phone or mail. Many people who have had their identities stolen have not found out until the next time they try to open a new credit account, or apply for a home or other type of loan.
2. "Phisher" or mock websites: This is a rather new phenomenon, where perpetrators duplicate a website and send emails requesting that a customer reapply or provide security information. The information is then used to steal the consumer's identity, access bank funds, or apply for fraudulent loans. The phisher site spam emails tell consumers to click on a link to what looks like a real corporate website and input their personal information. The fake website looks like it comes from a legitimate company with whom a consumer may have a relationship, but the fraudulent site is really just a vehicle to steal consumer information.
3. Social Security Fraud: This happens when someone gains access to a Social Security number and uses it, along with other personal information, to commit fraud or identity theft. Social Security numbers of deceased or retired persons via their Social Security checks, along with an address, can allow someone to apply for credit reports that often contain enough additional information for a perpetrator to take the next step.
4. Intercepting credit card numbers from online transactions or databases: When consumers buy goods or services over the internet, it's rare to have the credit card information transferred without encryption, or coding, to prevent hacking. But there are still some cases where computer hackers gain access to information as it is sent. Hackers also search for weaknesses in databases maintained by businesses, government and financial institutions, and attempt to exploit them to gain account numbers. The incidence of breaking into these databases is not high, but one access breach can give perpetrators access to thousands of account numbers at once.
5. Mishandling of credit reports: Credit reports contain all the information a thief would need to steal using existing accounts, or to steal one's identity completely and cause major financial harm. There are several ways those in the credit reporting industry manage to balance the need for accurate account information to rate, while keeping enough information hidden to protect the public from theft. Strict compliance regulations from bureaus and the government require credit report users to have passed many hurdles to begin ordering and using credit reports. In addition, account numbers are partially masked on copies assessable to consumers. Data security standards are extremely high, and audits are frequent.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
;)
;)
