I thought this was an excellent article on how the government got us into the housing crisis and now it is applying the same failed strategy to try to fix the auto industry.

Dave Ramsey's Article

What is the definition of insanity? Doing the same thing over and over and expecting different results???

Todays Featured Rates

Actual interest rates and APR's may vary based on credit history and specific loan product. These rates are effective as of today, May, 5 2008 and are subject to change. Please contact me directly to recieve rates detailed to your specific loan program and credit score. You can also visit our website here to recieve up to date information on rates and learn how to recieve daily rates by e-mail.  

The Federal Reserve is blowing it. Inflation is at 4% and they continue to dig an economical pit by cutting rates.

Some of the very best CD rates are barely at 4% right now and that is for 50+ months. So if you have your money in most accounts then you are losing money. Prior to this week, the Fed had cut 300 basis points off of the federal fund rate in hopes to boost the economy & patch up the housing market. 

It has not worked so far and they are continuing to play their broken record. The more they play, the more inflation we are experiencing.

We have been fortunate that the mortgage backed securities have not felt the inflation pinch. How long can that hold out for? Will we see 7% this year on the 30 year rates? All arrows point to yes.

Getting students educated on the FICO credit scoring system is not a priority in the school system. Neither is it in almost all industries. The reasons for this can vary but the major one is that we are not provided with specifics on exactly how the scoring model works. This is done on purpose to protect the integrity of the scoring model.

It is frustrating sometimes but keep in mind that we do have an idea on most of the things that will help/hurt your score. Below is a graph to help explain what makes up your score.

Did you notice something? Maxing out your cards can be just as deadly as being late. Another item is that inquires make up 10% of your score. The inquires that hurt you are when a lender checks your credit to qualify you for a loan/service. However, the typical drop in your score is below 3 points.

Simply put:

• Make your payments on time 
• Try to keep balances on revolving debt (credit cards) below 50% and ideally 25%
• Keep at least 3 active loans or other credit file items on your report for at least 2 years to build your good payment history.
• Have a good mix of credit items: A home loan, car loan, & credit card are the best and varied 3 to have.
• Keep inquires to a minimum but when shopping for a home or car, you can do so in a short time period and several inquires will only count as one.  

Do go to AnnualCreditReport.com once a year for your free report from all 3 agencies. If you have mistakes there are ways to remove them. If you have items hurting your score, you can fix them. It is easier then you probably think!

Jeff Fullmer- Loan Officer and Credit Counselor

Your FICO credit score is based on a mathematical equation that is risked based. People sometimes get frustrated because the difference between a 679 and 680 can mean .25% on their rate. There is a major reason for this as the risk of lending a loan is greater now then ever. So new pricing adjustments have been adopted.

Below is a graph to show what your odds are of being 90 days late on a debt:

This graph does not appropriately scale the odds but it is the best I can do. It is in percentages but for those of you that play odds games here is that break down on your odds of being 90 days late:

800+ Score: 1292 to 1   (I would take this bet, wouldn't you! All lenders do!)

760-799: 597 to 1   (Interesting to see the odds cut in half, still great odds though)

720-759: 200 to 1   (Cut in half again, still a great bet!)

660-679: 38 to 1   (This is the reason 680 and below get hit hard on their mortgage rate, odds are not looking as good)

620-659: 26 to 1   (This is where we say goodbye to conventional lending as any lower and the odds get ugly)

500-600: 8 to 1    (Good odds if its a Laker's game but bad for a lender to take a loss on 1 in 8 loans!)

500-:  2 to 1     (This is why you will not get any kind of loan with a below 500 score. Its pretty much a coin toss.)

Know Your score, Repair Your Score, Protect Your Score, Stay Educated!

Todays Featured Rates

Actual interest rates and APR's may vary based on credit history. These rates are effective as of today, May, 2 2008 and are subject to change. Please contact me directly to recieve rates detailed to your specific loan program and credit score. You can also visit our website here to recieve up to date information on rates and learn how to recieve daily rates by e-mail.  

Well... here it is, the eve of May 1st and we are at 32 degrees with the ground covered in snow. I have been putting off pulling out my camera because of this horrendous winter/spring we have had.  © 2009 Jeff Fullmer

 I am ready for the shutterbug to bite, I hope the lingering cold/snow does not chase it away. So I pulled out the camera to see what would happened.

© 2008 Jeff Fullmer 

I have photography in my blood but have never really explored it.

  © 2008 Jeff Fullmer

Reading (and seeing) pictures others have posted on AR has inspired me deeply. Thanks to all those who share.   

40 Points to live by:

1.   Take a 10-30 minute walk every day and while you walk, smile. It is the
   ultimate anti-depressant.

2.   Sit in silence for at least 10 minutes each day. Buy a lock if you have to.

3.   Record your late night shows and get more sleep.

4.   When you wake up in the morning complete the following statement 'My
   purpose today is to ____ .'

5.   Live with the 3 E's -- Energy, Enthusiasm, and Empathy.

6.   Watch more movies, play more games and read more books than you did in  2007.

7.   Make time for meditation and prayer. They provide us with daily fuel
   for our busy lives.

8.   Spend more time with people over the age of 70 and under the age of 6.

9.   Dream more while you are awake.

10. Eat more foods that grow on trees and plants and eat less food that is
   manufactured in plants.

11. Drink green tea and plenty of water. Eat blueberries, wild Alaskan
   salmon, broccoli, almonds & walnuts.

12. Try to make at least three people smile each day.

13. Clear your clutter from your house, your car, your desk and let new and
   flowing energy into your life.

14. Don't waste your precious energy on gossip, energy vampires, issues of
   the past, negative thoughts or things you cannot control. Instead invest
   your energy in the positive present moment.

15. Realize that life is a school and you are here to learn. Problems are
   simply part of the curriculum that appear and fade away like algebra class,
   but the lessons you learn will last a lifetime.

16. Eat breakfast like a king, lunch like a prince and dinner like a college kid (money wise that is).

17. Smile and laugh more.. It will keep the energy vampires away.

18. Life isn't fair, but it's still good.

19. Life is too short to waste time hating anyone.

20. Don't take yourself so seriously. No one else does.

21. You don't have to win every argument. Agree to disagree.

22. Make peace with your past so it won't screw up the present.

23. Don't compare your life to others'. You have no idea what their journey
   is all about.

24. Burn the candles, use the nice bed sheets, don't save them for a
   special occasion. Today is special.

25. No one is in charge of your happiness except you.

26. Frame every so-called disaster with these words: 'In five years, will
   this matter?'

27. Forgive everyone for everything.

28. What other people think of you is none of your business.

29. Time heals almost everything. Give time, time.

30. However good or bad a situation is, it will change. So stop complaining
  about the weather, the job, the rent, etc, etc.

31. Your job won't take care of you when you are sick. Your friends will.
  Stay in touch.

32. Get rid of anything that isn't useful, beautiful or joyful.

33.. Envy is a waste of time. You already have all you need.

34. The best is yet to come.

35. No matter how you feel, get up, dress up, and show up.

36. Do the right thing!

37. Call your family often.

38. Each night before you go to bed complete the following statements:
   'I am thankful for ___.' 'Today I accomplished ____.'

39. Remember that you are too blessed to be stressed.

40.Enjoy the ride. Remember that this is not Disney World and you certainly don't want a fast pass. You only have one ride through life so make the most of it and enjoy the ride.

May your troubles be less, May your blessings be more,
and may nothing but happiness come through your door!  

(I got this in an e-mail and wanted to pass it along, I hope you found it helpful!)

Todays Featured Rates

Actual interest rates and APR's may vary based on credit history. These rates are effective as of today, Apr, 25 2008 and are subject to change. Please contact me directly to recieve rates detailed to your specific loan program and credit score. You can also visit our website here to recieve up to date information on rates and learn how to recieve daily rates by e-mail.  

I have seen and used various online calculators over the year.

Prior to being in the lending industry I thought that calculating a loan payment was easy. Principle and interest is fairly simply and I was excited to find out how low of a payment I could get.

Then I owned my first home and realized that there were far more things to consider then principle and interest!

Below are some of the best calculators available. There is a 4 point analysis on the true aspects of refinancing that shows the entire picture of what refinancing will cost/save.

Make your life easier and save money with these free tools in one location:

How much would my monthly payment be? 
How much would my monthly payment be with an interest only adjustable rate loan? 
How much can I save with a 15 year mortgage? 
Can I save money by refinancing now? 
How quickly can I pay off my mortgage by making additional payments? 
Does it make sense to pay points to get a lower interest rate?
Should I buy a home or continue to rent? 
Should I consider consolidating my debt with a cash out refinance?

• As always, feel free to contact me for questions:
• Jeff Fullmer -(208) 239-8728
• Idaho's Loan Expert- Citizens Community Bank