tag:blogger.com,1999:blog-13174350326706104882019-03-20T06:25:09.030-07:00Compare Mortgage Loan BlogHoronoreply@blogger.comBlogger49125tag:blogger.com,1999:blog-1317435032670610488.post-28858373040026873702018-10-29T10:40:00.001-07:002019-03-20T06:25:09.003-07:00Is leasing a car right for you? <iframe src="https://carom.us/" width="640" height="360" frameborder="0" scrolling="no" allowfullscreen></iframe>Horonoreply@blogger.comtag:blogger.com,1999:blog-1317435032670610488.post-15631548414526889442018-10-28T09:58:00.002-07:002018-10-28T09:58:37.630-07:00Mistakes to avoid when investing in CDs<div class="separator" style="clear: both; text-align: center;"><img border="0" data-original-height="393" data-original-width="630" src="https://1.bp.blogspot.com/-_FJ98cU1sNI/W9Xqt-ISoEI/AAAAAAAABDo/JVEBjYU1tHETjBnaLZVtZfJ5WTlq2blqACLcBGAs/s1600/INVEST-CD.jpg" /></div><div style="text-align: justify;">Maximizing your CD earnings will require more than just opening the most convenient or obvious certificates.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">In fact, there are as many pitfalls as there are opportunities. So be careful to avoid these costly CD mistakes.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Here are 6 costly mistakes to avoid when investing in CDs.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Mistake 1. Not being ready for the Fed rate hikes.</b></div><div style="text-align: justify;">CD savers who don't follow Federal Reserve headlines do so at their own peril, as they could easily lock in a CD yield right before the Fed announces a rate hike.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The Fed's rate-setting committee meets every six to seven weeks to decide whether it will modify the federal funds rate.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">That rate is the interest commercial banks pay to borrow money from each other through the Fed, and it's the lever the Fed uses to manage short-term interest rates across the broad economy.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">For seven years, the Fed kept this rate near zero as a stimulus to help the economy recover after the 2008 financial crisis. During that time, savings, money market and CD yields languished at historic lows.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If the Fed continues to make increases over the next few years — even if very slowly — what might we expect national bank averages to do in relation to the federal funds rate?</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The only other time the Fed methodically raised rates from an exceptionally low level was in 2003. Back then, the federal funds rate had plateaued at 1.00% and was incrementally boosted to 3.50% over the next two years.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">When the federal funds rate was 1.00% in 2003, the average 1-year bank yield was 1.26%, and the average 5-year yield was 3.02% APY.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">By the time the Fed increases reached 3.50% in 2005, the 1-year CD average had climbed to almost 3.00% APY and approached 4.00% for the 5-year average.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Mistake 2. Buying long-term CDs that are costly to exit.</b></div><div style="text-align: justify;">Because the Fed's increases are likely to take place over the next several years, committing to today's rates for a 4- or 5-year CD can hurt you twice.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">First, you'll underearn future yields by a significant margin in the later years because rates will have climbed in the earlier years.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Second, locking in your funds for such a long period prevents you from moving into any better-paying CDs that arrive.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">In an era of rising rates, liquidity and flexibility offer you an edge, so always be sure to review the early-withdrawal penalty for any bank where you're considering opening a CD.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">A typical penalty is six months' interest, and on a 5-year CD, that can be a reasonable forfeiture in exchange for being able to move your money to a better-paying CD.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">But other banks charge 12 or more months' interest. Some even assess penalties that can subtract from your principal.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">So when faced with the choice between two long-term CDs of similar merit, opt for the one with the most lenient early-withdrawal penalty.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Mistake 3. Putting all of your money in one basket.</b></div><div style="text-align: justify;">When money experts talk about diversity, they usually mean divvying up your savings among different types of investments, such as domestic and foreign stocks, bonds and CDs.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">But holding a diverse portfolio of CDs with a range of maturity dates is important, too.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The classic way to do this is through "laddering," or buying an assortment of certificates in increasing terms.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">That provides a regular supply of maturing CDs that can be reinvested at higher returns.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Additionally, it's useful to diversify across banks.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If you're investing in CDs and it's more than $250,000, you'll definitely want to deposit your funds in multiple institutions because federal deposit insurance maxes out at $250,000 per depositor per bank.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Even if you don't have that much, capturing the very best yields will typically require buying CDs from more than one bank, since it's rare for one institution to offer a leading rate in all terms.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">To find the best returns at any time, search Bankrate's database of the top CD rates from around the country.</div><div style="text-align: justify;"><b><br /></b></div><div style="text-align: justify;"><b>Mistake 4. Not shopping around for the best returns.</b></div><div style="text-align: justify;">Buying CDs from the bank where you already have your checking account may seem practical. But in most cases, convenience is the only advantage you're gaining and at a significant cost.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">That's because most of the nation's biggest banks pay below-average returns.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Fortunately, dozens of national banks offer CDs paying three, four or even five times more than the national averages.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Credit unions and community banks are another source of chart-topping CD rates, with local offers often outpaying the nation-leading banks.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Mistake 5. Putting the wrong money into CDs.</b></div><div style="text-align: justify;">CDs are a smart place for money you don't need in the short term but aren't comfortable putting in riskier investments, like the stock market.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Savers can err in either direction here. Put money into CDs that you end up needing in the near term, and you'll be slapped with an early-withdrawal penalty that may wipe out the advantage you gained by opening a CD instead of a savings account.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">But if you're holding money for five years or more (some CDs have terms as high as 10 years), many financial advisers would tell you to invest in stocks instead. At today's depressed returns, chances are high that the stock market will do better over the long term.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Of course, this advice may change if CD returns climb to more attractive levels, making them worthier alternatives.</div><div style="text-align: justify;"><b><br /></b></div><div style="text-align: justify;"><b>Mistake 6. Letting your CD automatically roll over.</b></div><div style="text-align: justify;">When a CD approaches maturity, the bank will notify you that the term is ending. If you do nothing, the bank will automatically roll the proceeds of your expired CD into a new CD with a similar term.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Letting the bank do this is almost always a mistake.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">As you've learned above, you should choose your CD terms wisely based on what's happening with the Fed. Just because you have a 3-year CD maturing doesn't necessarily mean you should replace it with another 3-year CD.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Even more important is shopping around for the very best rates. Although it's possible that the bank with your existing CD offers the best current rate, it's more likely you'll find a stronger yield elsewhere.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Joining the savviest of CD savers is as simple as avoiding these mistakes. Steer clear of them, and you'll not only earn the highest yields but enjoy useful flexibility that will serve you well if rates begin rising.</div><div style="text-align: justify;"><br /></div>Horonoreply@blogger.comtag:blogger.com,1999:blog-1317435032670610488.post-79202494798939797642018-10-27T08:30:00.000-07:002018-10-27T08:30:00.359-07:00Bring realistic expectations to home inspections<div class="separator" style="clear: both; text-align: center;"><img border="0" data-original-height="399" data-original-width="630" src="https://1.bp.blogspot.com/-oCmRc0qsNas/W9O0sN6Zw8I/AAAAAAAABCQ/DAGL7tt8-aQNErGWmV0nprPKwA49w0WTQCLcBGAs/s1600/real-estate-ira.png" /></div><div style="text-align: justify;">You've probably heard that hiring a professional home inspector is a critical step to take before you close on a home.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Having a complete understanding of a property's problems is essential to making a smart purchase and protecting your finances.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Right?</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Well, no.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">While we think a home inspection is a smart thing to do, we also think you've got to have realistic expectations about what you'll really get out of it.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The system and restrictions that every inspector works under limit how thorough and reliable any report will be.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">That's why the contract you sign absolves inspectors of all liability for any problem they might miss — and we've seen them miss some big ones.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The first problem is that home inspectors, by the nature of their profession, face a major conflict of interest.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Most of them depend on real estate agents to steer customers their way. Those agents want a home inspector to reassure nervous buyers that they're making a smart investment.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">An inspector who causes buyers to pull out of a deal by pointing out too many problems is an inspector that agents will quickly delete from their smartphones.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">We aren't saying that home inspectors are liars or bad people. They're just caught up in a system with incentives that don't always align with the needs of homebuyers.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">They also tend to be generalists, not specialists.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">An inspector might tell you a home's old furnace has plenty of years left or a crack in the wall is only cosmetic.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Yet the furnace might have to be replaced because the heat exchanger is cracked, and the house could be on the verge of falling down because the foundation is sinking.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Home inspectors usually aren't heating and cooling experts or structural engineers. (And, yes, these are real examples that we know actually happened.)</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Home inspectors are also limited in how much they can see.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Take, for example, this common problem: You're buying an older house, and you want to know what shape the electrical and plumbing systems are in. If they're faulty, your home could suffer serious damage, and the repairs could be highly disruptive and expensive.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Without breaking open the walls, however, it's hard for an inspector to tell how well those systems have aged or if they've been updated.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The home inspector couldn't be more thorough, even if you wanted him or her to be. You don't own the property yet, and you can't go around punching holes in someone else's drywall.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">That's why you shouldn't go into this with the unrealistic expectation that a home inspector is going to save you from making a huge mistake by uncovering a deal-killing flaw.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Consider yourself to be well-served if the inspector uncovers a few modest issues that had escaped your attention.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">You can recoup the typical $475 cost of a home inspection by asking the seller to fix almost any problem your inspector finds — or to knock some money off the purchase price for you to handle the repair later.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Of course, the inspector might say the home looks great and give you nothing to bargain with. But that's the risk you take.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If there's a specific problem you're highly concerned about, you can always seek a second opinion from an expert, usually a contractor you might hire to fix the problem.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">But with the time limits in the home purchase contract, the constraints on your budget and the contractor's inability to look behind walls, under floors or in ceilings, there's only so much they can tell you.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">So what should a stressed-out homebuyer do?</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Just hire an experienced inspector, and don't fret about your choice.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">A good place to look is the American Society of Home Inspectors, a nonprofit, voluntary professional society whose members must pass a technical exam, follow a code of standards and ethics, and have performed at least 250 home inspections.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The National Society of Home Inspectors is a similar organization that establishes professional standards and ethics.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Then do the usual research, checking online reviews and calling a few inspectors to ask about their background and services.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The Department of Housing and Urban Development has a list of screening questions you can ask.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">(Shopping around for the cheapest service won't save much, because most inspectors working within a given area charge similar fees.)</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">One way to get the most from a home inspection is to hire an inspector who will let you accompany him or her as they look at the house.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Rather than just reading a report and viewing photos after the fact, you can get a firsthand look at the actual problems the inspector notices and ask lots of questions.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If nothing else, you'll learn a few things about how homes work.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">But sooner or later, every home is going to have problems.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Fixing stuff is an unavoidable hassle of home ownership, and no prepurchase inspection is going to change that.</div>Horonoreply@blogger.comtag:blogger.com,1999:blog-1317435032670610488.post-8223617392633759202018-10-26T17:40:00.000-07:002018-10-27T07:02:58.185-07:00Buy or refi for less with a 3.0%, 15-year home loan<div class="separator" style="clear: both; text-align: center;"><img border="0" data-original-height="385" data-original-width="630" src="https://4.bp.blogspot.com/-hwj4p44WoSY/W9Oz3rgrhgI/AAAAAAAABCI/Fr9xgPwP_NY17hFpBez0Dp9HrkWfXj4MQCLcBGAs/s1600/Refinance-Why-Refinance-1024x373.jpg" /></div><div style="text-align: justify;">National Mortgage Alliance has one of March's best nationally available deals on a 15-year, fixed-rate home loan.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">It's charging 3.0% with no points and $1,600 in fees for a conventaional loan.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">That's exactly what this lender was charging last spring, even though the average cost of a 15-year home loan is about a half-point higher than it was in March 2013.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The current deal from National Mortgage Alliance is also well below the current national average of 3.48% for 15-year loans.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">We think you'll have a tough time finding a better loan. But there's no harm in trying. Click here to compare this deal with the best mortgage rates from hundreds of local and national lenders in our extensive database.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">These shorter-term loans are particularly popular with borrowers out to refinance their homes and save tens of thousands of dollars in interest by paying off their loans more quickly.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">See how much interest you'd save by paying off your home loan early using our 15-year vs. 30-year mortgage comparison calculator.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The major drawback to shorter loans is that the monthly payments are higher. For this mortgage, the principal and interest payment would be $691 a month for every $100,000.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">You can use our mortgage calculator to determine the monthly payments for the amount you want to borrow with this or any home loan.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">It will also provide a month-by-month amortization schedule that shows how much you've reduced your debt and how much you still owe if you want to pay off the loan.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">National Mortgage Alliance (www.nationalmortgagealliance.com) is an online lender and a division of the Georgia Banking Co., which has branches in Atlanta and Griffin, Ga.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Georgia Banking Co. is licensed to write loans in all 50 states and the District of Columbia. National Mortgage Alliance is licensed in the 48 continental states and the District of Columbia.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">To qualify for this loan you must:</div><div style="text-align: justify;">Be applying for a loan of less than $417,000.</div><div style="text-align: justify;">Have a credit score of at least 740.</div><div style="text-align: justify;">Have a 20% down payment if you are buying a home.</div><div style="text-align: justify;">Have 20% equity in your home if you are refinancing.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Although mortgage rates have defied all predictions and drifted lower since January, most experts still expect them to rise later in the year.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">That's because the Federal Reserve is ending its campaign to drive long-term interest rates — including mortgage rates — to record lows.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The nation's bank-for-banks began buying $85 billion worth of debt a month in September 2012, a fairly even split between Treasury bills and bonds backed by thousands of home loans.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">By flooding the mortgage market with money, it pushed the cost of home loans to record lows in an attempt to boost real estate sales and property values battered by the recession.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">In a process the Fed refers to as tapering, it reduced those purchases to $75 billion in January, $65 billion in February and March.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">When the bank's rate-setting committee met this week, it voted to lower the purchases to $55 billion in April.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">At that rate, it appears the Fed's bond-buying campaign will wrap-up sometime this fall — unless we're confronted with some new economic catastrophe.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Bottom line: We're probably enjoying the lowest rates of the year right now.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Keep that in mind as you make your home-buying or refinancing plans.</div>Horonoreply@blogger.comtag:blogger.com,1999:blog-1317435032670610488.post-38770180209623537152018-10-26T06:33:00.000-07:002018-10-27T07:02:58.441-07:00Be a smarter investor in your retirement plan<div class="separator" style="clear: both; text-align: center;"><img border="0" data-original-height="404" data-original-width="630" src="https://1.bp.blogspot.com/-7fqGDpt1JIM/W9MXdbzFIQI/AAAAAAAABBA/DqdHhUVonxo-7vweBgVyL5zGTsSuLn88QCLcBGAs/s1600/401k.jpg" /></div><div style="text-align: justify;">So you've signed up for your employer's 401(k) plan and are making regular contributions through your paycheck.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">You're already off to a great start.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">But if you really want a fighting chance at a secure retirement, you're going to have to become a smart investor. That means mastering a few key concepts.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Let's start with the two most important questions you'll need to answer, according to David Blanchett, head of retirement research for Morningstar Investment Management:</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">- How much of your income should you save?</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">- How should you invest that money?</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Many employers now automatically enroll their workers in a retirement savings program. So if your company has a 401(k) plan and you do nothing, you'll probably be signed up for it anyway.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">But just because your company enrolled you doesn't mean you're saving enough. The default contribution rate your employer set might be 3% or less.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Terrance Odean, professor of finance at the Haas School of Business at the University of California, Berkeley, says you should save 10% to 15% of your income.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">For 2018, you're allowed to contribute up to $18,500 in pretax income to your 401(k). That limit increases to $24,500 once you turn 50.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If you can't contribute at least 10%, make sure you're saving enough to capture any match your company offers. A match is the amount of money your company is willing to put into your 401(k) on top of your own contributions.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">You can ask your human resources department or plan administrator whether your employer offers matching contributions. It will typically be a portion of every dollar you contribute, up to a certain percentage of your annual income.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Let's say you have a $50,000 annual salary and your company matches half of your contributions up to 5% of your income. If you contribute $2,500, the company will throw in another $1,250.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">That's $1,250 in free money.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">"Start by saving enough to make sure you're getting the full match. Not doing so is like not cashing your paycheck," said Odean.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Now it's time to figure out where you should invest your money.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Even if you voluntarily enroll and don't choose your investments, you'll likely end up in a target-date or balanced fund as a default option.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">That's not necessarily a bad thing.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Target-date funds have one major advantage: They put you in the right mix of stocks and bonds based on your age, Morningstar's Blanchett says.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Fund managers rebalance the mix yearly, slowly moving you more into bonds, which are less risky investments, as you near retirement.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">"The target-date fund is going to be the best option for most people. It's simple — you can buy it and forget about it," Blanchett said. "It offers asset allocation and everything you need."</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If your 401(k) plan offers target-date funds, simply find the fund with a date that is closest to when you think you might retire. If you're 35 and want to retire at 65, go with a 2045 target-date fund.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If target-date funds aren't a choice, you'll want to pick a balanced fund. They typically hold a mix of stocks and bonds.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">You'll likely have a few different options with varying degrees of risk. In general, higher-risk funds allow for greater returns, while lower-risk funds typically have lower returns but with much less volatility.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">You can look to your employer for help researching these options.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">A survey by human resources consulting firm Mercer found that 79% of retirement plan participants said their employer offered advice on their plan.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">It also found that those who sought advice reported more confidence in their retirement than those who didn't.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Start by talking to your boss, benefits administrator or human resources department.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">They won't have all of the answers, but they'll at least be able to let you know what support or services are available.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">"Generally, larger companies do more on the education front and have somewhere to get advice," said Christine Benz, director of personal finance for the investment research firm Morningstar.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Some companies offer customized websites that help you learn how to better use your 401(k).</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">They take into considerations things like age, income, other assets, expenses and risk tolerance to provide automated fund recommendations from the available options in your plan.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Some will even use models to forecast how much you could have in your account by retirement. You'll be able to change contribution rates and investment options to see what the numbers could look like.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Also, look to websites like Morningstar, which produces some of the most commonly used fund ratings and has links to prospectuses and other detailed fund information.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">While mulling your investment options, you'll also want to take a look at fees.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">You can't control the fees charged by the firm your company picked to manage your 401(k), but you do have some control over the fees you'll pay on the mutual funds you pick.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">A good rule of thumb is to never buy a mutual fund that charges more than 1% a year. This is often referred to as the expense ratio.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Most target-date and index funds charge much less than that.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Fees can drain tens of thousands of dollars from your nest egg over the years.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">A single percentage point doesn't sound like a lot, but it is.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">"One percent can be a huge difference when you factor in the effect of compounding. You really need to look at the fees. It's not that (your employer) is out to get you, it's that some have better plans than others," said Odean.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">You should be able to obtain all of this information from your plan administrator.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Finally, you'll want to manage your 401(k) as a part of your overall portfolio. So any outside IRA or other investments should be factored into your total asset allocation.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Consider consulting a financial adviser.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">With proper advice, you'll be able to write a custom-tailored road map to get from where you are now to the retirement you want.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Unless you have a tremendous amount of money, Blanchett recommends a fee-based planner. A session might set you back $200, but you'll get impartial, independent advice.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The planner will be able to take a cumulative look at your finances and tell you how to best proceed with your 401(k).</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">"It could help to get a planner's take to find out more about your options. They'll be able to step back and look at your 401(k) options as a part of your entire financial picture," Blanchett said.</div><div style="text-align: justify;"><br /></div>Horonoreply@blogger.comtag:blogger.com,1999:blog-1317435032670610488.post-81478465222282086002018-10-25T06:42:00.000-07:002018-10-27T07:02:58.693-07:00FHA Streamline Refinance<div class="separator" style="clear: both; text-align: center;"><img border="0" data-original-height="321" data-original-width="630" src="https://3.bp.blogspot.com/-PlNNKPSN4m8/W9MZn5goJVI/AAAAAAAABBk/iUhktTNBV_QqQ6gemUUl30XtfvnIz0CSgCLcBGAs/s1600/FHA-Home-Loans-in-Texas.jpg" /></div><div style="text-align: justify;"><b>WHAT IS 'FHA Streamline Refinance'</b></div><div style="text-align: justify;">A Federal Housing Administration streamline refinance, or FHA streamline refinance, is a mortgage refinancing option offered by the U.S. government. An FHA streamline refinance requires the mortgage to be already FHA-insured and current, not delinquent. The refinance results in a reduction in the homeowner’s interest and principal payment, and no more than $500 in cash can be taken out on the refinanced mortgage.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>BREAKING DOWN 'FHA Streamline Refinance'</b></div><div style="text-align: justify;">The FHA began allowing streamlined refinancing for insured mortgages in the 1980s. The idea behind an FHA streamline refinance was to make better mortgage terms easier and less expensive for homeowners to access. With an FHA streamline refinance, lenders deal with a reduced amount of paperwork and underwriting, hence the word “streamline.”</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">To make refinancing more possible for eligible homeowners, the FHA does not require an appraisal on a streamline refinance and instead uses the homeowner’s initial purchase price. It also does not require a credit report for non-credit qualifying streamline refinances. A credit report is required for credit qualifying streamline refinances. Despite this, the lender might ask for a credit report as a part of its own policy. The program does not ask for bank or asset statements. It also does not require home appraisals.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">There are two forms of this refinance available: non-credit qualifying and credit qualifying. There are some differences in what the FHA requires for each type. Non-credit qualifying refinancing is available to homeowners who have owned the property for at least six months, and the refinance must take place at least 210 days after the closing date of the original mortgage. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Lenders involved with this FHA refinancing program offer a number of payment options. A “no cost” option charges the borrower no out-of-pocket expenses, but carries a higher interest rate than if the borrower paid closing costs in cash. The new mortgage amount is not permitted to include closing costs. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Eligibility for an FHA Streamline Refinance</b></div><div style="text-align: justify;">The biggest obstacle to meeting the requirements for an FHA streamline refinance is demonstrating a net tangible benefit. In effect, this means homeowners have to show the FHA that refinancing will be to their quantifiable financial benefit. The net tangible benefit could be achieved through reducing the mortgage term, the interest rate or a combination of both. So, for example, a homeowner would not meet the requirements for an FHA streamline refinance if refinancing resulted only in a lower monthly payment, but left the homeowner with a longer mortgage term. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Test Your Skills With Trading Challenges</b></div><div style="text-align: justify;">Put your trading skills to the test with our FREE Stock Simulator. It's the ideal platform to get your feet wet in the markets! Submit trades in a virtual environment with $100,000 in cash before you start risking your own money. Sign up today and start interacting with other traders from diverse backgrounds and experiences, and learn the methods behind their trades to become a smarter investor.</div><div style="text-align: justify;"><br /></div>Horonoreply@blogger.comtag:blogger.com,1999:blog-1317435032670610488.post-18321887201916125572018-10-24T06:36:00.000-07:002018-10-27T07:02:58.944-07:00Is it time to sell your old car or truck? Here's how to tell<div class="separator" style="clear: both; text-align: center;"><img border="0" data-original-height="418" data-original-width="630" src="https://1.bp.blogspot.com/-_dWA_Co0XEQ/W9MYY4HhbsI/AAAAAAAABBM/Gen8b8EdKQgbClntN44F68YQniGym0CxwCLcBGAs/s1600/what_to_do_after_selling_your_car-1501023022154.jpg" /></div><div style="text-align: justify;">Each year you drive your old car is one more year you don’t have to worry about paying for a new one.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Yet, with every turn of the odometer, you're one mile closer to big repair and maintenance bills.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">At some point, it costs so much to keep your old ride on the road that you'd be better off investing all of the money you're spending at the garage on a new car or truck. Our database of the best auto loan rates can help get you started.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">There’s no magical mileage threshold that tells you when it's time to ditch your car. In fact, many of today’s vehicles routinely exceed 100,000 miles without experiencing major mechanical problems.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">But if you're being hit with one repair bill after another, these 5 steps can help you decide if the time has come to ditch your old car or truck.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Step 1. Find out what your car is worth.</b></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">All smart decision-making starts with this.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">To find out what your car is worth, research it on an auto valuation site, such as Edmunds.com or Kelley Blue Book (kbb.com).</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">You'll be asked a few questions about the year, make and model of your car, the odometer reading and the condition it's in, taking any repairs you're planning to make into account.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Those websites will provide you with three potential values for your car.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The one you want to use is the trade-in value, which is the lowest of the three estimates.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">This is the amount you can expect to receive from a dealer if you include your current car in a deal to buy another car there.</div><div style="text-align: justify;"><b><br /></b></div><div style="text-align: justify;"><b>Step 2. Determine how much it will cost to keep it on the road.</b></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Ask your mechanic for a rundown of all the:</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Big repairs that must be done right now to keep your vehicle running.</div><div style="text-align: justify;">Additional repairs that can be postponed but need to be done over the next year.</div><div style="text-align: justify;">Major maintenance that will come due during the next 12 months based on how many miles are on the car.</div><div style="text-align: justify;">We're not talking about oil changes.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">We're talking about the more costly work required as vehicles reach 60,000 to 100,000 miles — everything from changing the transmission fluid and coolant to replacing worn-out tires, brake pads and rotors, water pumps, suspension parts and timing belts.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Check your owner’s manual for the manufacturer’s recommended maintenance schedule. If you don’t have the manual, any reputable shop can check the schedule for your car and tell you exactly what you'll need to do and how much those repairs will cost.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Postpone that work, and you'll run a greater risk that your car will break down and stick you with an even bigger repair bill once you've been towed to the shop.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Take the timing belt, for example. It connects the crankshaft to the camshaft and controls the opening and closing of the valves in your engine.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Replacing a timing belt often costs $600 or more. But if you don’t do it, you can pretty much count on a worn-out timing belt breaking at some point, seriously damaging your engine.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Then it would cost $2,000 or more to get it running again.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Also, watch for two signs of big trouble:</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Blue smoke out the tailpipe means you're burning oil, which very likely indicates the oncoming need for an engine replacement. (A little white smoke until the engine warms up is OK.)</div><div style="text-align: justify;">Slipping between gear changes means your automatic transmission is failing. (Slipping is where the engine revs up without any appreciable increase in speed.)</div><div style="text-align: justify;"><b><br /></b></div><div style="text-align: justify;"><b>Step 3. Do the math.</b></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Add up all of the repairs and maintenance you'll need to do over the next year, and compare it to the trade-in value of your car.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If you'll have to spend more than the car is worth to keep it on the road for another year, then it makes financial sense to invest that money in a new ride.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Step 4. Recalculate your costs using past repair bills.</b></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">You aren't finished if that comparison falls on the side of keeping your old car, especially if it's not a decisive difference.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Mechanics can't look at your car and predict everything that's likely to break over the next year, so maybe you didn't have a list of estimated future repairs in Step 2.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">That doesn't mean you're not going to have any.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Reliability guides, such as the ones from Consumer Reports, provide entire lists of problems that consistently plague almost every make and model as it ages.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">In fact, here's a pretty tried-and-true rule of car ownership: The older your car gets, the more stuff breaks.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">So dig back into your records, and see how much you spent on nonmaintenance repairs over the past year.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Add your total repair costs from the past year to any critical repairs you must do right now and major maintenance costs you’re looking at this year.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Compare that projected cost to the trade-in value of your car.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If that tips the scales against your car, ditch it.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Step 5. Trust your judgment.</b></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If this is still a close call, spend the next couple of weeks evaluating your old car.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Think about how well your car runs and drives.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If it feels like you're behind the wheel of a rattletrap that's getting ready to fall apart, then it probably is.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Break the tie by saving your money on repairs and replacing your ride.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Follow a simple rule of thumb: Monthly payments shouldn't exceed 8% of your gross monthly income. If that's $3,000, then your payments should be no more than $240 a month.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Use Interest.com's auto loan calculator to determine how much you can afford to spend on a new car or truck.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Then take advantage of our 5 simple steps to the best deal on a new car or truck or 10 smart moves for buying a used car to close the deal.</div><div style="text-align: justify;"><br /></div>Horonoreply@blogger.comtag:blogger.com,1999:blog-1317435032670610488.post-50957576076459050962018-10-23T06:30:00.000-07:002018-10-27T07:02:59.202-07:00Retirement-ruining money mistakes<div class="separator" style="clear: both; text-align: center;"><img border="0" data-original-height="419" data-original-width="630" src="https://1.bp.blogspot.com/-qzNBi-NF6HM/W9MW1vHY1xI/AAAAAAAABA4/whC20IeYl882UBiQGGXcl1b-KaZxakYlwCLcBGAs/s1600/iStock-485441942.jpg" /></div><div style="text-align: justify;">Most families have a tragic story about elderly relatives who lost their savings. Maybe it's Aunt Mary falling into the hands of unscrupulous swindlers. Or Cousin Bill foolishly giving his last dime to a ne're-do-well son.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Sometimes the story is so painful, nobody will even tell you exactly what went wrong.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The circumstances of retirement and old age, which unfortunately can include loneliness and boredom, can lead to money mistakes with terrible and embarrassing consequences.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">But the unfortunate truth is that seniors are also a special target of questionable sales pitches and outright scams intended to take advantage of vulnerable seniors.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Here are the 7 most common money mistakes, often heartbreaking ways retirees are separated from the nest egg they've worked all their lives to build. Maybe you'll recognize a family member among the victims.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>1. Playing the slots</b></div><div style="text-align: justify;">Go to any casino, and you'll find a permanent corps of seniors, mainly women, endlessly poking coins into the slots.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The shiny pinging machines seem to block thoughts of loneliness or mortality.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">"A large portion of these people are depressed, and the machine is a way to self-medicate," said Suzanne Graupner Pike, founder of the San Diego Center for Pathological Gambling.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The casinos make it easy to make money mistakes.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">"They have buses that go to the senior houses and pick up the seniors and for free transport them to the casinos," she said. "In fact, some of the casinos will even replace oxygen bottles for them."</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Of the more than 1,000 people she's treated since opening the addiction center in 2003, the majority have been senior women.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">"I have had people in their 80s who have lost everything," Pike said.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Instead of playing the slots, put the money into savings. Use our savings calculator to see the magic of compound interest at work.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>2. Playing the market</b></div><div style="text-align: justify;">Older women may be susceptible to the siren song of slots, but men, particularly retired white-collar professionals such as doctors and lawyers, tend to be the ones lured into foolish stock market trading.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">This isn't a matter of simply not getting the best return on their investments or having a wrong mix of stocks and bonds in a portfolio. Rather, they believe they've found the Next Big Thing about ready to explode.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">"I've seen losses of $100,000 or more," said Deborah Frazier of Frazier Financial Consultants in Chapel Hill, North Carolina. For whatever the reason, she added, "It's always a professional man ... It's someone who should know better."</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The fallacy is believing you can be the next Warren Buffett just because you've had a successful career elsewhere.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>3. Boiler room fraud</b></div><div style="text-align: justify;">Foolish investments are bad enough. Outright crooked ones are worse.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Unscrupulous salespeople pitching worthless penny stocks, oil wells or promissory notes not listed on reputable exchanges often target retirees.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Gullible buyers are reeled in with promises of "guaranteed" returns that reputable stocks and bonds can't match.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Bob Webster, director of communications for the North American Securities Administrators Association, said this type of fraud accounts for more than half of the cases that state law enforcement officials investigate involving seniors.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">They're typically approached by phone from high-pressure sales offices or "boiler rooms" like those depicted in the movie The Wolf of Wall Street.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">But the hook can be dangled by someone the retiree knows, such as an acquaintance from church.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">No matter who's making the pitch, it should be greeted skeptically. When something looks too good to be true, it almost always is.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>4. The suckers list</b></div><div style="text-align: justify;">Crooks have a variety of schemes intended to prey on the vulnerabilities of seniors.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">A person may call an elderly woman claiming to be a grandchild who just needs a little financial help "and please don't tell mom."</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Or perhaps she's won a lottery or sweepstakes worth a fortune if she'll just forward a small bonding fee to cover taxes and administration.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">These schemes might initially cost the victim only a few hundred or thousand dollars, but it almost never stops there.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If victims get on a "suckers list" — a compendium of gullible people crooks keep — they'll be exploited again and again.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">"They try to get the person to send them more and more money until they've just absolutely drained them dry," said Susan Grant, director of consumer protection for the Consumer Federation of America.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The fastest-growing scam in 2013 and 2014, according to the National Consumers League, was "phantom debt," in which the caller claimed to be collecting an old, neglected debt that needed to be paid immediately.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Never let yourself be pressured into a quick decision about money. For more information about phantom debt and other scams, check out fraud.org, run by the Consumers League.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>5. The prodigal son (or daughter)</b></div><div style="text-align: justify;">Broke relatives are the most dangerous and emotionally charged drain on senior savings. Refusing a child or grandchild, brother or sister who's desperate for money can be traumatic.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Yet that's exactly what most retirees must do. It doesn't matter whether they're the blameless victims of illness or divorce, or lifelong deadbeats, the answer must be no.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Statistics are hard to come by, but a 2012 survey found 23% of Americans over 50 with credit card debt had used their cards to bail out family members.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">"Convincing someone to turn away their financially strapped children is difficult, but many seniors already living on the financial edge need to look out for themselves first or risk outliving their money," said Kendra Hudson of Woodward Financial Advisors in Chapel Hill, North Carolina.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>6. Compulsive shopping</b></div><div style="text-align: justify;">Bored, restless, craving something new? Today's world of 24-hour shopping channels and online marketplaces like Amazon.com means satisfaction is only a quick call or click away.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Compulsive shopping is one way people of all ages squander their money, but the elderly can be particularly susceptible, says Terence Shulman, founder of The Shulman Center for Compulsive Theft, Spending and Hoarding in Franklin, Michigan.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">While about 10% of Americans have a compulsive shopping problem, Shulman said, "probably more than half my clients are 50 or above. The majority are older."</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">They arrive with different concerns about their spending habits, he said, but "one thing I hear fairly frequently is that they're blowing through their Social Security, pension or retirement money at a frightening rate."</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Loneliness, grief or an urge to keep up with current styles and trends can all lead retirees to spend more than they can afford, he says.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Some feel they deserve to splurge.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">"Maybe they've been frugal their whole lives," he added, "and it's, 'Now I'm retired, and I want to buy what I want.'"</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Addressing compulsive shopping starts by admitting the problem to a friend, family member, counselor or in groups such as Debtors Anonymous, Shulman said.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>7. Lost treasures</b></div><div style="text-align: justify;">An elderly woman who collected valuable coins wanted to foil robbers, so she decided to hide about $100,000 worth of them around her house.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Unfortunately, her heirs don't know where she hid the money, or if the woman even remembers, said Jude Boudreaux of Upperline Financial Planning in New Orleans. "For now, they're planning on taking a metal detector through the house after she passes."</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Boudreaux said he's seen all kinds of valuable possessions locked away or forgotten, from piles of casino chips to antiques and valuable art.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Other financial advisers say it's not uncommon for family members to discover safe deposit boxes full of unredeemed savings bonds, sometimes long after the bonds had matured and stopped paying interest.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">But the most common lost treasure is probably good old-fashioned cash. A survey by American Express found that 23% of Americans are keeping some of their savings in bills and coins.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">More than half of those admitted to hiding it in a secret location.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">But stashing your savings in the freezer or underneath the mattress is much riskier than sticking it in a federally insured bank. The chance it will be forgotten grows as memory inevitably falters with age.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">It also can be lost due to fire or theft (experienced robbers know where to look) or even thrown out accidentally.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">In 2009, an Israeli woman tossed her mother's old mattress with $1 million — the mother's life savings — hidden inside. Talk about money mistakes.</div><div style="text-align: justify;"><br /></div>Horonoreply@blogger.comtag:blogger.com,1999:blog-1317435032670610488.post-74432272032045454672018-10-22T17:57:00.000-07:002018-10-27T07:02:59.459-07:006 costs to expect when caring for aging parents<div class="separator" style="clear: both; text-align: center;"><img border="0" data-original-height="420" data-original-width="630" src="https://3.bp.blogspot.com/-kycL5pxryq4/W85x6_DRcVI/AAAAAAAABAg/5O4SpFOCyf0yyZIWMr_LGLfgbqoUPENbQCLcBGAs/s1600/retirement-k13D--621x414%2540LiveMint.jpg" /></div><div style="text-align: justify;">Having an aging parent live with you in your home can be much cheaper than moving mom or dad into an independent or assisted-living facility.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">But having another person in your home won't be cost-free.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">"Be prepared for unexpected expenses, especially if your parent does not have a pension and will be depending on you for support," says Glenda Standeven, an inspirational speaker who has shared her home with her mother for the past 17 years.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Knowing what's in store can help you plan ahead. It can also get you ready for a money-related conversation with mom or dad, which you should have before you start sharing an address.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Here, experts explain pivotal costs to consider when an aging parent moves in.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Cost 1. Remodeling expenses</b></div><div style="text-align: justify;">To grant everyone room, you may need to add on to your home or convert an area into private living quarters.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Adding a bathroom can cost more than $38,000, according to Remodeling Magazine. A master suite addition could run more than $100,000.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Even if you purchased a house that includes space for your aging parent, you might have to put in safety features.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Small changes can reduce the risk of falling, explains Sharon Roth Maguire, chief clinical quality officer for BrightStar Care, a national full-service home care agency that provides both medical and nonmedical care.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Consider adding grab bars in the shower, a shower chair and nonskid mats. Clear paths of clutter, suggests Maguire. To make lighting adequate, you might purchase a motion-activated night light or touch-sensitive table lamps.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Also consider keeping everything for your parent on the first floor to eliminate the need to go upstairs.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Cost 2. Lost hours of work</b></div><div style="text-align: justify;">If your parent has certain medical conditions, you may have to spend time lining up doctor appointments, filling prescriptions and heading to weekly therapy sessions. You may also need to take mom or dad to the bank and grocery store.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If you regularly take off work for those tasks, you could face lower wages or a reduced salary.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If you won't have time to do this, connect with a local taxi company or senior transportation center, Standeven suggests.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Even with the help of local transportation, you might have to ask for hours off work when your parent first moves in.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">That's especially true for a loved one who previously lived in a different city or state and is new to your area.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">To introduce your parent to the community, check out exercise classes, senior centers and other organizations that offer activities that might be of interest.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Cost 3. Bringing in additional help</b></div><div style="text-align: justify;">If your parent needs help with personal care, the national median daily rate of a home health aide is about $135, according to the 2017 Genworth Cost of Care Survey.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">As you research caregiver options, ask about qualifications.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">In addition to having a solid set of credentials, "you'll want to know if they have insurance coverage," Maguire says. You won't want to be held liable if a caregiver is injured in your home.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Also, look into resources that could help pay for home care.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Some long-term care insurance policies may cover in-home care, and veterans might qualify for help through the Department of Veterans Affairs' Aid & Attendance and Housebound program.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If your parent has a limited income, check the local office on aging for any assistance available for daily needs.</div><div style="text-align: justify;"><b><br /></b></div><div style="text-align: justify;"><b>Cost 4. All of the little things that add up</b></div><div style="text-align: justify;">Chances are, "when mom moves in, you're already thinking about water and electricity," notes Laurel Jones, a professional health care advocate and CEO of Infinity Business and Concierge Services in the Washington, D.C., area</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">But keep in mind, your parent might want special food, need meal replacement supplements or request household supplies that weren't in your budget before.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If you previously turned down the heat in winter during the hours you spent at work, plan on the thermostat staying at a comfortable temperature throughout the day. The same is true for air conditioning during the summer.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">And if you opt to have your parent leave the home for portions of the day, those costs will need to be factored in as well.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The national median rate for adult day health care, which might include programs that provide transportation, personal care and therapy-related activities, is about $70 a day, according to the 2017 Genworth Cost of Care Survey.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Cost 5. Medical expenses</b></div><div style="text-align: justify;">"With medications, a lot of times a portion is covered by insurance," Jones says.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">You'll need to take a careful look at what's not covered and whether your parent can pay for some or all of those expenses. Certain prescriptions, such as drugs to prevent the progression of Alzheimer's, can be pricey.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Also, be aware of over-the-counter medicines, such as calcium supplements or vitamins like B12. "Those are usually out of pocket," explains Jones.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">You might have to help pay for unexpected costs such as hearing aids. The average price of a digital hearing aid runs approximately $1,500, according to the National Institutes of Health. High-end hearing devices might cost between $3,000 and $5,000.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">As your parent's mobility decreases, investments such as a walker, scooter or bathtub lift to help with personal care might be needed.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Cost 6. Long-term expenses</b></div><div style="text-align: justify;">Even if your parent is in good health now and can contribute financially, the situation may change a few years from now.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Mom or dad could outlive retirement funds. And if your loved one's health deteriorates, you may need to look for a new living situation, such as a nursing home.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The average daily cost of a private nursing home room was $267 in 2017, according to the Genworth survey.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Loretta Veney, author of Being My Mom's Mom, is already looking for future financial help for her 85-year-old mother.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">"I'm trying to plan for as much as I can," Veney says. "I think she's going to live a long time."</div>Horonoreply@blogger.comtag:blogger.com,1999:blog-1317435032670610488.post-24803243196888881122018-10-19T18:27:00.000-07:002018-10-27T07:02:59.713-07:003 ways to refinance into a VA home loan<div class="separator" style="clear: both; text-align: center;"><img border="0" data-original-height="329" data-original-width="630" src="https://3.bp.blogspot.com/-6E4IVUK-OU8/W8qEXOXZ_MI/AAAAAAAABAI/We9IN3GveM0YbkOPiof9Kj0b4dGY1vhwQCLcBGAs/s1600/GAR-VA-HOME-LOANS-1024x536-4.jpg" /></div><div style="text-align: justify;"><b>Want to refi into a VA loan? Here are 3 scenarios</b></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Veterans Affairs mortgages, or VA loans, have become lifesavers for homeowners who don’t want to miss out on ultra-low mortgage rates but are struggling to refinance with conventional loans.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Rock-bottom rates and tighter underwriting standards have led to a huge demand for VA loans from refinancers, says Michael Frueh, loan guaranty director for the Department of Veterans Affairs.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The biggest advantage of refinancing with a VA home loan is that homeowners can refinance up to 100% of the home’s value, and they don’t have to pay for mortgage insurance. A non-VA home loan normally requires some equity in the house.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">“As values in the market continue to stabilize, veterans can take advantage of lowering their interest rates to today’s unprecedented lows,” says Deborah Ames Naylor, executive vice president of mortgages at PenFed, the Pentagon’s credit union.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If you are a member of the military on active duty, a veteran, a reservist or a member of the National Guard, here are some refinancing options you may consider when it comes to a VA home loan.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Reducing the interest rate on a VA home loan</b></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Homeowners who already have a VA home loan can reduce their monthly payments or shorten the term of their loans through a streamline refinance program known as the interest rate reduction refinance loan, or IRRRL.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">One of the biggest advantages of refinancing through this program is that the process requires minimum documentation. The VA does not require a credit check or appraisal for refinances under IRRRL. Some lenders will still require these, as they have their own internal rules.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">“An IRRRL loan typically offers a more streamlined approval and underwriting process,” says Nicole Alley, a spokeswoman for USAA, a financial-services provider for military families. “An appraisal may be required based on the lender or loan’s current servicer.”</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Borrowers refinancing an existing VA home loan through this streamline program pay a lower funding fee than they would pay under other VA loan options. The fee generally is 0.5% of the total loan amount and can be added to the loan balance.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The refinance cannot be used to pay off a 2nd mortgage, Naylor says. Borrowers who have a 2nd mortgage would need approval from the 2nd lender to have the loan subordinated.</div><div style="text-align: justify;"><b><br /></b></div><div style="text-align: justify;"><b>VA cash-out refinancing</b></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The VA offers a cash-out refinancing program for veterans who have equity and who have an existing VA home loan or a conventional loan.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Homeowners who have equity in their homes may get cash back when refinancing, according to the VA rules. Some lenders may not allow cash-out refinances because of their internal rules. Some lenders allow the homeowner to refinance up to 100% of the home’s value to pay off the old mortgages.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Refinancing conventional loan into VA loan</b></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If you don’t have a VA home loan but would be eligible for one, you may refinance your conventional mortgage into a VA loan.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Generally, most members of the military, veterans, reservists and National Guard members are eligible to apply for a VA home loan. Spouses of military members who died while on active duty or as a result of a service-connected disability may also apply.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">“If they apply to refinance a non-VA loan into a VA loan program, it is considered to be a cash-out refinance by the VA,” Naylor says. “This means that the veteran would need to be eligible, and they would be assessed the appropriate VA funding fee based upon eligibility.”</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Funding fees for cash-out refinances vary from 2.15% to 3.3%. The fee can be added to the loan balance.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">It falls under the cash-out refinance program, but that doesn’t mean the borrower actually gets cash back, as many lenders won’t allow it. But generally, the homeowner can refinance up to 100% of the home’s value, which is a huge plus in the current lending environment.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">“Clearly the biggest advantage is the availability of 100% financing,” Naylor says.</div><div style="text-align: justify;"><br /></div>Horonoreply@blogger.comtag:blogger.com,1999:blog-1317435032670610488.post-80014147573464350582018-10-18T19:46:00.000-07:002018-10-27T07:02:59.964-07:00When to start collecting Social Security<br /><div class="separator" style="clear: both; text-align: center;"><img border="0" data-original-height="401" data-original-width="630" src="https://1.bp.blogspot.com/-8Uljhhk4p5Q/W8lFeMJ5eNI/AAAAAAAAA_w/-Yo2A4qha04s-aJlgbMm8-0ef6dplikGACLcBGAs/s1600/shutterstock_159843518.jpg" /></div><div style="text-align: justify;">You've paid into Social Security for years, and now you're finally reaching the age at which you could start collecting your hard-earned benefits.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">But when should you begin? Is it smart to sign up for a check as soon as you turn 62, the youngest possible age?</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Or should you wait until you'll qualify for a bigger monthly payment?</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If you decide to wait, how long is too long?</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Deciding when to start Social Security is one of the most important retirement decisions you'll make.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">There's a lot to consider, including your personal finances, but here are 6 steps that will help you make the right call.</div><div style="text-align: justify;"><b><br /></b></div><div style="text-align: justify;"><b>Step 1. Find out where you stand.</b></div><div style="text-align: justify;">You need to know how much your benefits will be and when, exactly, you'll reach what the Social Security Administration (SSA) considers "full retirement age," the age at which you can receive those benefits without penalty.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Your benefits are based on your lifetime earnings. If you're over 60 but not yet receiving benefits, you should receive a statement in the mail from the SSA reviewing your potential benefits at different retirement ages.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The rest of us will need to get an online statement from Social Security.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Uncle Sam also has been moving up full retirement age, which used to be 65 for everyone. That's now only true for people born in 1937 or earlier, who are all now way past 65 anyway.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">For everyone else, it gradually increases, depending on the year you were born, until it reaches 67 for people born after 1959.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">This calculator will let you see the benefits someone your age, making your income, is likely to receive.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Step 2. If you're out of work or in financial trouble, take the money as soon as you can.</b></div><div style="text-align: justify;">The earliest you can collect benefits is age 62. But you'll pay a penalty of 25% or more in your monthly benefits by filing before full retirement age.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">You also could lose more if you continue working while collecting a monthly Social Security check. Until the year you reach full retirement age, your benefits will be cut by $1 for every $2 you earn over a certain amount annually.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">That is why retirement experts generally suggest you wait until you reach full retirement age, or even older, before filing for benefits.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">But if you're unemployed and out of savings, or if you're only working part-time and finding it impossible to make ends meet, then none of the above is as important as your immediate need.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The decision is really a no-brainer. Take the money as soon as you qualify.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Getting less per month is better than waiting and sinking into debt or financial ruin. Yes, you'll be getting less, but you'll also start collecting earlier, and you might be surprised how long it takes to make up the difference.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The government uses the example of someone who can receive $750 a month at 62 or $1,000 a month at a full retirement age of 66. A person starting early earns $3,000 less a year, but also has collected $36,000 in benefits by age 66.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Someone who waits until 66 to start collecting will need 12 years, until age 78, to make up that difference.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Step 3. If you're working and in good health, wait at least until full retirement age.</b></div><div style="text-align: justify;">Twelve years is a long time, so why shouldn't everyone take the money as soon as possible?</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">First, retirement is likely to be longer than you think. The government provides a calculator where you can get a rough estimate of how long someone your age is likely to live.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">On average, men turning 62 this year have about 22 years ahead of them, while women have closer to 24 years left.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Many of us will live much longer: More than 1 of every 3 people who are 65-year-old today will live to 90, according to the SSA.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Payments continue as long as you're alive, so those extra years of bigger monthly checks can matter a lot.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Second, the later years of our careers are often the best-paying, helping to boost benefits down the road. Every year you pay into Social Security increases the size of your monthly check once you start collecting.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">"Each case is unique," says Fred Amrein, a certified financial planner in Wynnewood, Pennsylvania, who often works with clients on retirement plans. "But the general rule is, delay it as long as you can."</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Third, you no longer face a penalty for working once you hit full retirement age.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">You can work as much as you want and still receive your full benefits. (However, depending on how much you make, you may have to pay federal taxes on part of your benefits. IRS Publication 915 provides more information.)</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If you're married, there's one last reason to consider waiting. If you die before your spouse, he or she can often collect a survivor's benefit based on your earnings. But if you elect to take early benefits, your spouse will receive a reduced check after you're gone.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Step. 4. If you really like your job, wait even longer, but not beyond 70.</b></div><div style="text-align: justify;">One of the oddities of Social Security is that full retirement age isn't the point at which you reach your maximum possible benefits. Keep working and paying into the system, and you can earn even more later.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The size of the increase depends on when you were born, but for everyone born in 1943 or later, it's 8% annually, or 0.66% a month. In the government's example, someone who earns $1,000 at a full retirement age of 66 boosts his or her monthly benefit to $1,320 by waiting until 70.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If you like your job, working a little longer might even be good for your golden years.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">"There's more and more being written about how longevity is really extended by having some purpose, a sense you're doing something that really matters to you," Amrein says.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">But at age 70, there's no further benefit in waiting. It's time to cash in.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Step 5. If you don't need it, figure out when you can best use it.</b></div><div style="text-align: justify;">This is the best possible world. If your other retirement savings, through a pension, individual retirement account (IRA) or 401(k) plan, are healthy enough that you don't have to depend on Social Security, you have the luxury of making your decision based on other considerations.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Maybe you want to take the money early in your retirement, when you're at your most active, spending it on travel or that fancy RV you've had your eye on. If that's the case, and you're not worried about future income, why wait?</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">On the other hand, if you're worried your other sources of retirement income could fall short years down the road, then waiting to collect benefits (but not beyond 70) will help you sleep better at night.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If you're uncertain where you stand, Amrein suggests working backward from expenses.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Start with a careful inventory of the living costs you'll have when retired, along with a conservative estimate of your income from other sources. Make sure essentials are covered first, then look at the things you'd really like to do and see how they fit into the budget.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">You'll have a much better sense of when you want to turn to Social Security.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Step 6. Apply with Uncle Sam.</b></div><div style="text-align: justify;">Once you've decided the time is right, applying is pretty simple. You can do it over the phone or online. The government says it can take as little as 15 minutes.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">You can also go into a local SSA office, although you should call first to set up an appointment.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">You may be asked to provide certain documents to prove your eligibility, including your Social Security card, your birth certificate, proof of U.S. citizenship if you weren't born in the U.S. and a W-2 or tax return for the last year.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">But overall, the process shouldn't be difficult. All new beneficiaries now receive their payments electronically, so have your bank account information handy to set up an automatic deposit.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If you don't have a bank account, the government can arrange for you to receive your payments through a special Direct Express card, which functions like a bank cash card.</div>Horonoreply@blogger.comtag:blogger.com,1999:blog-1317435032670610488.post-36426860789499583072018-10-18T10:46:00.000-07:002018-10-27T07:03:00.266-07:005 simple steps to the best deal on a new car or truck<div class="separator" style="clear: both; text-align: center;"><img border="0" data-original-height="414" data-original-width="630" src="https://1.bp.blogspot.com/-IiX8bhzMV68/W8jG6nPSpMI/AAAAAAAAA_Y/2oiyRgDZJ3sTEtkMQJv3s8LkkCJBF4dcACLcBGAs/s1600/man-handing-woman-car-keys-700x460-main.jpg" /></div><div style="text-align: justify;">You need the right information and a savvy negotiating strategy to get the lowest price and cheapest loan on a new car or truck.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The salesperson hopes you'll go shopping without knowing how much the dealership paid for the car you want, how much other consumers are paying for similar models, whether any discounts are available or how much you should pay for a loan.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Without that information, you'll wind up paying thousands more than you need to — almost guaranteed.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">That's why our 5-step plan for driving away with the best deal can make you a smarter, more confident buyer.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Here's how it works:</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Step 1. Decide how much you should spend.</b></div><div style="text-align: justify;">Once you've picked the new car or truck you want, go home and get ready to negotiate.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Start by finding out how much you should pay at Edmunds (www.edmunds.com) or Kelley Blue Book (www.kbb.com).</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Use a copy of the window sticker to enter all of the information you're asked about engines, accessories and even the color, into their price calculators. When you're done, Edmunds or Kelley will provide you with three prices:</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">MSRP. This should be very close to the suggested retail price on the sticker. If it is, then you know you've put in all of the right information.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Invoice price. This is the price the dealer paid for the car.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Average transaction price. Edmunds calls this "What Others Are Paying." Kelley refers to it as "The New Car Blue Book Value." It usually will be somewhere between the retail price and invoice price.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Your goal price should be somewhere between the invoice price and the average transaction price. Being a smart consumer should allow you to pay less than the average consumer.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If, for example, the invoice price is $22,000 and the average transaction price is $22,600, then you should set a goal of paying between $22,200 and $22,400, not counting any rebates.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Step 2. Decide which discount to take.</b></div><div style="text-align: justify;">Now use our links to see whether any rebates or low-cost financing options are available on your car.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If you have a choice between a rebate and low-cost financing, you need to pick the discount that will save the most money.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Let's say you're going to borrow $18,000 over 60 months and have a choice of two loans: 3.00% from a bank you found on our site or a discount rate of 0.9% from the automaker's finance company, like Ford Credit or GMAC.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If you took the bank loan, your payments would be $323 a month, and you'd pay $1,406 in interest over the life of the loan. If you took the discount financing, you'd pay $307 a month and $414 in interest over the life of the loan.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Now, look at the difference between the total costs of the two loans. In our example, it's right at $1,000. If the rebate is more, take the rebate.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If not, take the cheap financing, which will have to be arranged through the dealership. Those subsidized loans can only be made by a single lender that's owned by or affiliated with the automaker.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Our Rebate vs. low-cost loan calculator allows you to compare any amounts, any rates, quickly and easily.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Step 3. Line up a loan.</b></div><div style="text-align: justify;">If you're not going to take a discount loan from the manufacturer, you need to find the cheapest possible way to finance your purchase.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Our most recent survey of major lenders shows the average annual interest rate for 36-, 48- and 60-month auto loans is just over 4%.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">So, unless you have below-average credit, there's no reason to pay more than this. Indeed, you should qualify for a lower rate.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Just check our database of the best auto loan rates from scores of lenders.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Pick a bank or finance company offering one of the best deals. You can usually apply online and be approved within hours if not minutes.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Now you know how much you're going to pay, how much you have for a down payment, how much you're going to finance and what that loan will cost.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Finally, use our auto loan calculator to get a good idea of what your monthly payments will be. Just enter the price you expect to pay, the loan rate and term, and the tax rate and fees the dealer provided.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If you can afford the payments, you're ready to go back to the showroom.</div><div style="text-align: justify;"><b><br /></b></div><div style="text-align: justify;"><b>Step 4. Make an offer.</b></div><div style="text-align: justify;">Former car salespeople and negotiating experts say you'll have the most leverage if you:</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Buy at the end of the month, when salespeople are trying to make quotas and the dealership is striving to meet its budget for revenue and profits.</div><div style="text-align: justify;">Show up an hour before closing on Friday, when everyone is anxious to start the weekend.</div><div style="text-align: justify;">Tell the salesperson you're ready to buy today, and ask how much he or she wants for the car.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The salesperson probably will consult with the dealership's sales manager. If he or she comes back with an offer below sticker price, that's a good sign.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Respond with a counter offer that's only about $100 above the invoice price. Sometimes the salesperson will resist taking your bid back to the sales manager, saying it's just too low.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Always remember that your salesperson and the sales manager are professional negotiators, working as a team to get you to pay as much as possible for their product. They want to see if they can get you to raise your offer without having to make a counter offer of their own.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Don't budge. Insist the salesperson take your offer to the sales manager.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">After you've gone back and forth several times, you should have reached the price you decided to pay back in Step 1.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If the sales manager is willing to accept that, you've got a deal. If not, that's your cue to graciously end the negotiations and try another dealer.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Step 5. Finalize your financing.</b></div><div style="text-align: justify;">Once you've got a deal, you'll usually be introduced to the dealership's finance officer.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The auto loan you found in Step 3 will almost always beat the best deal the finance officer can arrange through the lenders he or she works with — unless, of course, you chose to go with a discounted loan from the automaker.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">But there's no reason not to ask for the best financing offer the dealership can come up with and choose the least expensive option.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Just showing up with your own loan protects you from one of auto-buying's most expensive mistakes — finance charge markups.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">When customers don't know how much an auto loan should cost, dealers can tack three percentage points or more to the interest rate its lenders are willing to charge.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The dealer and lender split the extra profit, and the practice is perfectly legal. Customers don't have to be told that they're not getting the lowest possible interest rate.</div><div style="text-align: justify;"><br /></div>Horonoreply@blogger.comtag:blogger.com,1999:blog-1317435032670610488.post-41691287674490014672018-10-17T18:53:00.000-07:002018-10-27T07:03:00.520-07:00How I refinanced and saved $200,000<div class="separator" style="clear: both; text-align: center;"><img border="0" data-original-height="327" data-original-width="630" src="https://2.bp.blogspot.com/-2ymOUqpnLhs/W8fnm2CK_1I/AAAAAAAAA-0/zUKP2FKKgwY5z4rxPV2cr3YN854LPCtEwCLcBGAs/s1600/iStock-831135500.jpg" /></div><div style="text-align: justify;">My husband and I weren’t planning to refinance our mortgage.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">We already had a great rate at 4.5% and could comfortably afford our mortgage payments.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Plus, we’d just refinanced in 2010, and it was a huge hassle.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">After my editor assigned me a story on whether now is the right time to refinance, I did the math to see how much interest I could save by refinancing my 30-year mortgage to a 15-year loan and cutting my interest rate by another 1%.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The answer stunned me: $200,000.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If we could also eliminate the FHA mortgage insurance we were scheduled to pay for the next seven years, we'd save another $12,000.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">But could we swing the higher payment in good times and bad?</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">When you refinance from a 30-year into a 15-year term, your interest rate typically goes down by about 1%, but your monthly payment increases by about 40% because you’re paying down the principal 15 years faster.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">And yet you'll save tens of thousands of dollars (or more) in interest by eliminating those years of payments.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">I decided we could swing the higher payment because the increase would be about the same as my "fun money" budget. I would stop buying clothes, restaurant meals and the like if things got tight in order to save a ton in the long run.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">And our new monthly payment would be similar to our payment before our first refi. We made those payments on a lower income.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">On Jan. 20, I talked to a lender affiliated with Churchill Mortgage, the only lender financial guru Dave Ramsey recommends.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Its rates weren’t low enough. Going from 4.5% to 3.875% wasn’t going to cut it.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Plus, if our home didn’t appraise high enough, we would still have to pay $110 a month in private mortgage insurance.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The lender assured me that if our home’s value increased after our loan closed, we could try to get PMI removed before paying our principal balance down to 80%.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">We didn’t want to mess with that.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Next, I used Interest.com’s current mortgage rates search tool to see which lenders had the lowest rates in my area. The first one I talked to offered me 3.375%. If we needed PMI, it would be $80 a month, not $110.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">It sounded too good to be true.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">I checked out the loan officer and her company by looking up her real estate license and NMLS number. There were no disciplinary actions, and both were authorized to conduct business in my state. I checked out the mortgage company’s reviews on Yelp (mostly very positive) and its BBB rating (A).</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The good-faith estimate I received looked good. The lender proposed:</div><div style="text-align: justify;">- an $840 credit toward closing costs</div><div style="text-align: justify;">- an $800 underwriting fee</div><div style="text-align: justify;">- $435 for the appraisal</div><div style="text-align: justify;">- $950 for title insurance and escrow</div><div style="text-align: justify;">- $20 for the credit report</div><div style="text-align: justify;">- a $90 recording fee</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">We'd spend a reasonable $1,450 to refinance.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The next step was the appraisal.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">People told me only comparable sales, structural integrity and square footage mattered, but I disagreed.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">First impressions count, and a tidy home looks better maintained. We wanted our home to appraise as high as possible to avoid PMI.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">My husband and his mom went to work sprucing up the outside of our house; I went crazy cleaning the inside.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">When the appraiser came Feb. 14, our home looked fantastic. He spent 30 minutes taking measurements and making notes. He asked us what improvements we’d made. We told him what we'd spent on the hardwood floors and the guest bathroom remodel.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Our home appraised for $20,000 above its Zillow estimate. We could avoid PMI if we brought a few thousand dollars to the table.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">I emptied the savings account I created specifically for house-related expenses, and we did a cash-in refinance.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Loans got slightly cheaper between the day we applied and the day we locked our rate, so we closed with a lender credit of about $1,240. It only cost us about $1,050 to refinance.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">And our monthly payment increased by less than we initially decided we could afford because we did a cash-in refi and closed at 3.375%, not 3.5%.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Here are my tips for successfully refinancing into a shorter-term mortgage:</div><div style="text-align: justify;">- Don’t assume you can’t afford it. Do the math and talk to at least three lenders. If we’d rested on our assumptions or given up after talking to the first lender, we wouldn’t have refinanced.</div><div style="text-align: justify;">- Do everything you can to get the highest possible appraisal. Make sure your home looks well cared for and doesn’t have any obvious deferred maintenance. It could help you avoid having to pay mortgage insurance.</div><div style="text-align: justify;">- Look at the whole picture. Paying off your mortgage early may save you on more than just interest; it may also save you on PMI. Your finances will be tighter in the short term, but you’ll be wealthier in the long run.</div><div style="text-align: justify;"><br /></div>Horonoreply@blogger.comtag:blogger.com,1999:blog-1317435032670610488.post-52250288669776616352018-10-17T18:48:00.000-07:002018-10-27T07:03:00.772-07:0010 smart moves for buying a used car<div class="separator" style="clear: both; text-align: center;"><img border="0" data-original-height="423" data-original-width="630" src="https://2.bp.blogspot.com/-zmUPypZLTfE/W8fmR80EKYI/AAAAAAAAA-o/SMGSaIZM3ec1Bs1P3V-akglf-b9TbXVJgCLcBGAs/s1600/auto-loans-2017.jpg" /></div><div style="text-align: justify;">Buying a used car can be a great deal — if you play it smart.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Most 3- or 4-year-old cars and trucks are very reliable, because automakers have done a lot to improve the safety and durability of every model.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Used vehicles cost a lot less, too, with an average financed amount of $19,291, around $10,000 less than the amount for a typical new auto, according to Experian's most recent State of the Automotive Finance Market report.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Buying a used car also means you avoid the depreciation hit new-car owners get in the first year, so a used car can hold onto its value longer, says Ronald Montoya, consumer advice editor for auto research company Edmunds.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">But buying a used car can be an expensive and tragic game of "rush-in" roulette if you're too hasty.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">You don't want to overpay or get a car or truck that's been abused, crashed or dunked in a flood, then dried out and shipped off to be sold to the gullible.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Let our 10 smart moves increase the chances your "new" used vehicle will be a great purchase:</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Smart move 1.</b> Check the reliability of the models you're considering.</div><div style="text-align: justify;">Two good sources of information are Consumer Reports magazine's April auto issue, available in the library or through the Consumer Reports website, and J.D. Power and Associates, a research company that polls buyers about their cars and trucks.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Think twice before buying a model that has a history of significantly more problems than average, especially if major mechanical components such as the engine or transmission are prone to breakdowns.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Smart move 2</b>. Shop around for the best loan.</div><div style="text-align: justify;">Many banks and credit unions offer better deals on used-car loans than you'll find if you try to finance through a dealership.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The typical 36-month used-car loan costs around 5.03%, according to our weekly surveys of major lenders, but you could probably do better than that if you shop around.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Start your search by checking our database of the best auto loan rates from scores of lenders.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Then use our auto loan calculator to find out what the monthly payments would be.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Smart move 3. </b>If saving money is your priority, buy from an individual rather than a new-car dealer.</div><div style="text-align: justify;">When you've found a vehicle you like, use Edmunds or Kelley Blue Book to see how much it's worth.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Their calculators will ask for a lot of information about the car or truck, from the make and model to its mileage and optional equipment. In the end, you'll be given three values. The lowest is what the car would be worth as a trade-in; the others are the prices when sold by an individual or by a new-car dealer.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The private-party price is always lower than the dealer price, because there's more risk. You won't get a warranty (unless some of the original factory warranty remains and can be transferred), and some naughty people sell cosmetically reconditioned wrecks to bargain hunters just like you.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Smart move 4. </b>If reliability is most important, buy a used car that's certified.</div><div style="text-align: justify;">Certified pre-owned (CPO) vehicles sold at new-car dealerships are supposed to undergo rigorous inspections and testing before being resold.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">They typically have fewer miles and cosmetic problems and come with some type of warranty, though such agreements can vary considerably.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The only downside: Expect to pay more for a certified auto.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">"It will raise the purchase price by an average of $1,000 more than a non-CPO vehicle at the dealership," Montoya says.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Smart move 5. </b>Avoid dealers with a poor reputation.</div><div style="text-align: justify;">If you've decided to do business with a dealership, check with the Better Business Bureau and your state's attorney general to see if previous customers have filed an unusual volume of complaints.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Ask friends and family whether they know anyone who has had a good — or bad — experience with that dealership.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Shy away from independent used-car lots.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">They sell the mechanically suspect, high-mileage, worn-out cars and trucks that new-car dealers don't want.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">And they do that without offering any warranty whatsoever. You're on your own, even if something goes wrong just a few miles down the road.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Smart move 6. </b>Make safety a priority.</div><div style="text-align: justify;">Favor cars and trucks that offer such lifesaving features as antilock brakes, side-curtain airbags and electronic stability control, which automatically tries to correct for a skid.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Also, check out how well the vehicle did in crash tests. The most demanding tests available to the public are done by the Insurance Institute for Highway Safety and the National Highway Traffic Safety Administration.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">You can search for ratings by make, model and year. The best performers receive the IIHS Top Safety Pick award or NHTSA 5-Star Safety Rating.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Think twice before buying a model that scored poorly on two or more tests.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Dealers that sell and service the brand of vehicle you're considering can use the vehicle identification number (VIN) to determine whether your car or truck has ever been recalled for a safety defect and whether the repairs were made.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">This isn't a deal breaker. Automakers must fix safety problems for free, no matter who owns the vehicle or how long ago the recall was issued. But you should know what repairs are needed and be prepared to get them done before you buy.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Smart move 7. </b>Check the vehicle's history.</div><div style="text-align: justify;">Services such as Experian's AutoCheck or Carfax aren't perfect.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">But for about $40, you can use the vehicle identification number to see in which state the vehicle was purchased, whether it has been registered in other states and if there is a history of accidents or title issues.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">"A worst-case scenario is if the car was totaled or flood-damaged and someone tried to patch or cover it up and sell it to you," says Lauren Fix, author of Lauren Fix's Guide to Loving Your Car.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If you are buying from a dealer, insist the dealer provide you with such a report for free and carefully compare the VIN on the vehicle with that on the report to make sure they are the same.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Smart move 8. </b>Check for a warranty.</div><div style="text-align: justify;">The Federal Trade Commission requires dealers to place a "Buyer's Guide" on the vehicle that tells whether the vehicle has a warranty and what that warranty covers.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If there's no warranty, the "Buyer's Guide" must be marked "as is." That means you take your chances.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Get any promises in writing. Verbal promises don't carry any weight in a dispute. Pull out paper and pencil anytime a salesperson says, "We'll fix anything that goes wrong."</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Some newer vehicles may have part of the original manufacturer's warranty in effect. Just remember, parts of that warranty could be voided if the previous owner didn't do all of the proper maintenance, so pay attention to the next recommendation.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Smart move 9. </b>Ask the private owner or dealer for service records.</div><div style="text-align: justify;">"If a private owner doesn't have records, that could be a sign the person didn't take care of the auto the way they should have," Fix says. Skip the car.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">For dealers, ask whether the original owner bought the vehicle at the dealership. Then ask whether the owner had it serviced at the dealership. If the answer is yes, ask for the service records.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If the dealer is unwilling to provide service records, go elsewhere.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Smart move 10. </b>Insist on taking the vehicle to an independent mechanic for an examination.</div><div style="text-align: justify;">This is something any reputable seller should allow. If the seller refuses, walk away.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Make sure the mechanic examining the used car is familiar with the brand and has some kind of certification of expertise from a group such as the National Institute for Automotive Service Excellence (ASE).</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">This checkup could cost $100 to $200 (get the price first), but that's cheap compared with the cost of finding serious problems later.</div><div style="text-align: justify;"><br /></div>Horonoreply@blogger.comtag:blogger.com,1999:blog-1317435032670610488.post-13616711709596008982018-10-17T18:43:00.000-07:002018-10-27T07:03:01.024-07:00How to cope with HELOC payment shock<div class="separator" style="clear: both; text-align: center;"><img border="0" data-original-height="354" data-original-width="630" src="https://2.bp.blogspot.com/-ArddqWO7ozQ/W8flT4-Ol0I/AAAAAAAAA-g/G43wzdEqNBc3XS0eLmgClJ3fRHRUVJtqQCLcBGAs/s1600/10192012_housingup_article.jpg" /></div><div style="text-align: justify;">If you're among the millions of Americans bracing for the minimum payment on their home equity lines of credit to go up — maybe way up — there's no need to panic.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">There are several solutions to your problem.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Most HELOCs require low, interest-only minimum payments for the first 10 years.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">But in the 11th year, the line of credit is closed, and you must begin repaying the amount you borrowed (or in lender-speak, the principal) over the next 15 to 20 years.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Because homeowners opened so many HELOCs during the real estate bubble of 2004 to 2008, about 3.3 million HELOCs are shifting into the repayment phase between 2015 and 2018, according to estimates by real estate data firm RealtyTrac.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Experian, one of the three major credit-reporting agencies, estimates the typical payment on those loans will rise by nearly 70%.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If you're among those facing a bumped-up HELOC payment, here are six potential solutions:</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Solution 1. Suck it up and pay the money.</b></div><div style="text-align: justify;">If your monthly budget can handle the increased payment, go ahead and make it. You have to repay this debt at some point.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Even if it requires a long, hard look at your household budget to find the extra cash, it's well worth the effort, says Eric Selk, executive director of HOPE NOW, a Washington, D.C., nonprofit that's helped arrange mortgage workouts for more than 7 million homeowners.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">"Putting repayment off indefinitely is just going to create more financial tension in the long run," he says.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">A Department of Housing and Urban Development-approved home ownership counselor can help you make the hard choices required to start retiring this debt now.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Solution 2. Call your lender and ask to refinance.</b></div><div style="text-align: justify;">Your monthly HELOC bill will list a phone number for your lender. Call and ask if you can refinance into a new 10-year interest-only HELOC.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Whether you're allowed to re-up for another 10 years may depend on whether the loan has been sold to an investor. If an investor holds your debt, the mortgage servicer must follow that investor's guidelines on extending your HELOC for another 10 years.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Solution 3. Shop for a new HELOC.</b></div><div style="text-align: justify;">If your credit and income are solid, and your home is worth more than you owe on your primary mortgage and current HELOC, you could pursue a new line of credit from another lender. (Compare the best home equity rates from dozens of lenders in our database.)</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Once you're approved, you can use money from the new home equity loan to pay off your existing HELOC.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Just be aware that underwriting guidelines are more conservative now than they were 10 years ago, says Terry Francisco, senior vice president for Bank of America Home Loans in Charlotte, North Carolina.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">While lenders used to allow primary mortgage and home equity debt to reach as high as 100% of a home's value, Francisco says his bank limits total lending to 85% of a home's value today.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The average FICO credit score for its HELOC borrowers is about 750, he adds.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Solution 4. Get a new first mortgage.</b></div><div style="text-align: justify;">If you have enough home equity, do a cash-out refinancing of your first mortgage, and use the extra cash to pay off your HELOC.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Let's say, for example, that you were paying 3.5% on a $100,000 first mortgage and 5.5% on $50,000 borrowed through a line of credit.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Your total monthly payments would be $678 while you were just covering the interest on the HELOC and $857 once you had to start repaying the principal.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If you rolled all $150,000 of the debt into a new 30-year fixed-rate mortgage at 4.1%, the new payment would be $725 a month, or more than $130 less than before that mortgage debt was consolidated.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The only drawback is that the total interest costs will be more if you take the full 30 years to repay this debt.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Solution 5. Call your lender and ask for help.</b></div><div style="text-align: justify;">If you just can't afford the higher payment, tell your lender and ask if it has programs to help you out.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Bank of America, for instance, has a HELOC modification program that may offer payment assistance to help customers who can't afford the higher HELOC payment, Francisco says.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If your lender won't help, call the Homeowner's HOPE Hotline at 888-995-HOPE. Its credit counselors have special tools to help you sort out your options.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Never, ever respond to an unsolicited email, call or letter offering a HELOC workout. As more HELOC problems arise in the years ahead, scammers will follow the money. They'll promise to erase your debt, then take your money and disappear.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Solution 6. Look into federal programs.</b></div><div style="text-align: justify;">A few of the federal programs for troubled homeowners might be good options, especially if:</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">You're in financial trouble because you lost your job or have high medical bills.</div><div style="text-align: justify;">You're one of the 56% of HELOC borrowers who owe more on their combined mortgages than their homes are worth.</div><div style="text-align: justify;">"Because these loans are on your lender's books, they'll be more motivated to keep that loan performing in some way, even if you are underwater," said Daren Blomquist, vice president at RealtyTrac. "That could involve extending the period that's interest-only, giving you more time to regain equity in your home as home prices continue to go up."</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">To use the federal government's Home Affordable Refinance Program (HARP), you typically have to have a home equity loan secured by Fannie Mae or Freddie Mac, the two big government-owned companies that buy mortgages.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">That's a problem because most HELOCs are not Fannie or Freddie loans, Blomquist said.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">But there's a back-door way to use the program. If your first mortgage is guaranteed by Fannie or Freddie, and you can qualify for the federal Home Affordable Mortgage Program to modify that mortgage, you'll also get access to the Second Lien Modification Program.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">You might even get some of what you owe on your HELOC forgiven in the process.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Owe more on your first mortgage plus your HELOC than your home is worth? You may be able to use the Federal Housing Administration's Short Refinance Program to get a new FHA loan that repays your existing first loan and HELOC and also potentially reduces the total amount you owe.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The Home Affordable Refinance Program is another option if you owe more on your mortgages than your home is worth.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Each of these federal programs has detailed rules about various aspects of your loan, including the size of your loan, which company guaranteed your loan and what year you took out your loan. The HOPE NOW counselors can walk you through those rules and identify the programs for which you're qualified.</div><div style="text-align: justify;"><br /></div>Horonoreply@blogger.comtag:blogger.com,1999:blog-1317435032670610488.post-15242524554807954512018-10-17T09:14:00.000-07:002018-10-27T07:03:01.273-07:00How to win a bidding war<div class="separator" style="clear: both; text-align: center;"><img border="0" data-original-height="249" data-original-width="630" src="https://2.bp.blogspot.com/-4USgeTAJUGs/W8df4QPHMpI/AAAAAAAAA98/IHujayi9JfYT7TLdWifHS8BfC7l2VPBjwCLcBGAs/s1600/Mortgage-large.jpg" /></div><div style="text-align: justify;">You may have found the home of your dreams, but be prepared to fight a bidding war to make it your own.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">A shortage of available homes on the market has created fierce competition for those homes that are listed for sale.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Much of the competition is driven by the limited supply of houses on the market.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">In August 2018, inventory was at just 4.3 percent, the same as last month, according to the National Association of Realtors (NAR).</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Homes are also selling quickly, which isn't helping first-time buyers.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">“While inventory continues to show modest year over year gains, it is still far from a healthy level and new home construction is not keeping up to satisfy demand,” said Lawrence Yun, NAR chief economist.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">But despite low supply and a competitive market, you can still come out of a bidding war victorious.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Here are 9 strategies that can help you win a bidding war:</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Tip 1. If you can afford it, pay cash.</b></div><div style="text-align: justify;">"It's cliché, but cash is king," says Trenton Hogg, a real estate agent in the Denver area. In that region, three-quarters of home sales wind up in bidding wars.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Sellers typically prefer dealing with a buyer who can pay cash, and they don't have to worry about a potential buyer actually receiving the financing he or she needs.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Tip 2. If you need financing, get preapproved.</b></div><div style="text-align: justify;">Pick a lender with competitive rates, and ask to be preapproved for a loan.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">You'll need to provide documentation so the bank or mortgage company can verify your income, assets and credit report.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">But once that's done, you'll have a letter to show sellers that says exactly how much you're qualified to borrow.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">(Of course, lenders won't fully commit to providing the money you need until they see the house you want to buy and are convinced it provides adequate collateral for the loan.)</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Tip 3. Understand the market.</b></div><div style="text-align: justify;">Before you hit the street, go online and scour the real estate listings so you know exactly what houses are available and how much sellers are asking.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">This isn't the time to dawdle. If you understand the market, you'll be ready to make a move when a home goes up for sale.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Tip 4. Make the first move.</b></div><div style="text-align: justify;">"I always tell my clients to be the first in line" when it comes to making an offer on a home, says Smitha Ramchandani, a Keller Williams real estate agent in Morristown, New Jersey.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If the house is priced properly, she tells her clients to offer full price and be prepared to up their offer if other bids come in.</div><div style="text-align: justify;"><b><br /></b></div><div style="text-align: justify;"><b>Tip 5. Make an extra-large deposit.</b></div><div style="text-align: justify;">Sellers often require a refundable deposit when you make an offer — typically 1% of the purchase price. If you want to show the seller how serious you are, consider putting down 10% or 20% instead.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If you get the house, this earnest money will go toward your down payment and closing costs.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Tip 6. Don't be nitpicky.</b></div><div style="text-align: justify;">When you make an offer, Hogg recommends removing as many contingencies as possible.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Contingencies essentially give a buyer the right to back out of the contract in certain cases, such as if they have problems obtaining financing, if problems are found during a home inspection or if the house doesn't appraise for the contract amount.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If problems turn up during an inspection, Hogg recommends only focusing on health, safety and sanitation issues.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">A survey of Redfin agents found waiving contingencies was the most effective strategy for winning a bidding war.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Tip 7. Make it personal.</b></div><div style="text-align: justify;">Sometimes you can win over sellers by tugging at their emotions. Write them a personal letter about why you want their home, and include a photo of yourself, your family members, even your pets, Ramchandani says.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">"Most sellers are very emotional about their homes," she says. "They created memories there."</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Tip 8. Include an escalation clause.</b></div><div style="text-align: justify;">Some buyers may be willing to increase their offer but fear overpaying, Ramchandani says. In that case, consider an escalation clause, giving you the opportunity to increase your bid if another potential buyer is offering to pay more.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Just don't get carried away. Set a reasonable cap for yourself. And be sure you can afford your top price and that the house will appraise for that amount.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Tip 9. Be flexible.</b></div><div style="text-align: justify;">Find out what might make the sellers' lives easier. They may want to move out as quickly as possible or may want to stay in the house a little longer, Hogg says.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Maybe they're eager to move across the country for a new job, or they have children in school and want to stay in the house to finish out the school year.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If you can, agree to adjust the closing date to meet their needs. Or consider closing and then renting the house back to them for a set period of time.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">"Giving the seller the ability to not have to move twice can get your offer to the top of the pile," Hogg says.</div><div style="text-align: justify;"><br /></div>Horonoreply@blogger.comtag:blogger.com,1999:blog-1317435032670610488.post-53412360733206880452018-10-17T09:07:00.000-07:002018-10-27T07:03:01.522-07:007 ways to measure your financial success<div class="separator" style="clear: both; text-align: center;"><img border="0" data-original-height="419" data-original-width="630" src="https://1.bp.blogspot.com/-PVwcRBzuyhE/W8deKzfrcBI/AAAAAAAAA9w/vLoFKBM7ypUDG5TtnkzQQ8j8ebm8pB3fgCLcBGAs/s1600/ways-to-make-saving-money-easier-597588a0845b340011753476.jpg" /></div><div style="text-align: justify;">You probably know how much your monthly mortgage payment and cable bill are, but do you know your credit score and net worth?</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Just as blood pressure and cholesterol are valuable measures of your physical well-being, we've come up with seven numbers you need to track the state of your financial health.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">They measure everything from how quickly you're accumulating wealth to paying down debt and building the kind of reputation that makes borrowing money a breeze.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">We'll show you not only where to find these numbers, or how to calculate them, but provide simple guidelines that will help you judge your progress and financial success.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Are you stashing more money in your retirement plans than most Americans? Or carrying bigger balances on your credit cards? Or building more equity in your home?</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Once you're done, you'll have a much better understanding of how well you're managing your money — and what you need to do better.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Measurement 1. Emergency fund</b></div><div style="text-align: justify;">Everyone should have some cash stashed in CDs or a savings account that can be quickly and easily reached to:</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Pay routine bills if their income is disrupted by a layoff, illness or injury, or</div><div style="text-align: justify;">Cope with a big, unusual expense — a wrecked car or storm-damaged house, for example — that your regular income can't possibly cover.</div><div style="text-align: justify;">How much do you need?</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Six months' worth of expenses is a common recommendation.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Let's say you spend $2,500 per month on everything from car payments and groceries to mortgage or rent. Then you need an emergency fund of $15,000.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Having such a cushion shows that you're no longer living paycheck to paycheck and have taken the first step down the road to financial security.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Measurement 2. Retirement savings balance</b></div><div style="text-align: justify;">This is the total amount in your tax-deferred retirement plans — typically a 401(k) plan at work and individual retirement accounts.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Many Americans are falling woefully short in this measure: 1 in 3 workers doesn't even have $1,000 in those accounts, and nearly 2 of 3 have less than $25,000.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">How can you tell if you're on track?</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">A good rule of thumb is to have saved twice your annual income by the time you're 40, four times by the time you're 50 and eight times by the time you turn 67.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">So, if you're earning $40,000 per year at age 40, you should have about $80,000 in your 401(k) and IRAs.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Our 10 secrets to successfully save for retirement can help boost your balance.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Measurement 3. Retirement savings rate</b></div><div style="text-align: justify;">To ensure you'll have enough for a secure and happy retirement, financial experts say you should be saving at least 10% of your gross (that's pretax) income — and probably more like 12% to 15%.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If you can't set aside that much, contribute what you can with the goal of increasing that amount by 1% every six months.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Measurement 4. Credit card debt</b></div><div style="text-align: justify;">When it comes to getting ahead in life, credit card debt is a terrible anchor.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Why? Because credit cards charge the highest interest rates of any type of consumer debt — typically about 18% to 22% — and allow borrowers to string repayments out for so long that it greatly inflates the cost of everything they buy.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Way too much money that families should be saving and investing in themselves and their futures winds up in the pocket of credit card companies.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">According to a Gallup survey, 3 of every 10 Americans don't own any credit cards, and half of those who do use them say they pay off the balance every month.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">But Federal Reserve data show households that carry credit card debt owe a substantial amount — an average of around $16,000.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If that's you, there's only one acceptable goal — pay it off as quickly as possible.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Our credit card payoff calculators can help you come up with a plan to pay off a single card or a bunch of credit cards.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Measurement 5. Credit score</b></div><div style="text-align: justify;">The three major credit-reporting agencies — Experian, TransUnion and Equifax — collect all sorts of data about your borrowing and bill-paying habits.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The information from those reports is then used in complex and secret formulas to generate your credit score, which is supposedly a measure of your creditworthiness.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The oldest and most widely used formula was created by Fair Isaac Inc. and results in what's known as the FICO credit score. FICO scores range from 300 to 850, with a median score of 713.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">You can obtain free copies of your credit reports at annualcreditreport.com. Take advantage of this to check for mistakes — and errors are depressingly common.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">While getting a free credit score has never been a right, the Consumer Financial Protection Bureau has been pushing credit cards to provide them to their customers.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Many have begun to do that, either through special websites or by printing scores right on monthly statements.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Another option is to use FICO's free credit score estimator.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Measurement 6. Home equity</b></div><div style="text-align: justify;">Real estate is a major source of wealth, and your stake is simple to calculate.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Just take the current market value of your home, and subtract the outstanding balance on all mortgages.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Let's say your home is worth $200,000, and you owe $150,000 on it. You have $50,000, or 25% equity, in your home.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">There are no mortgages on about one-third of all homes, so their owners hold 100% of the equity.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">CoreLogic, a California-based research firm, estimates that homeowners hold just over 40% of the equity in those properties that are mortgaged.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Measurement 7. Net worth</b></div><div style="text-align: justify;">We saved the best for last — the most complete measure of how rich you are.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">In the simplest of terms, net worth is your assets minus your liabilities. It's what you would have left if you sold everything you owned and paid your debts.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Our net worth calculator can help you do the calculations and make sure you don't forget anything.How-to-measure-financial-success-8</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">So how much should you have to feel as if your financial life is on track?</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The Federal Reserve's most recent Survey of Consumer Finances found that the median family net worth (half of all households have more, half have less) was:</div><div style="text-align: justify;">Ages 45 to 54: $105,400.</div><div style="text-align: justify;">Ages 55 to 64: $165,700.</div><div style="text-align: justify;">Ages 65 to 74: $232,100.</div><div style="text-align: justify;">The Wealthometer: USA, created by an economics professor at Harvard University, also shows where you stand financially with respect to other Americans.</div><div style="text-align: justify;"><br /></div>Horonoreply@blogger.comtag:blogger.com,1999:blog-1317435032670610488.post-49171729597260049782018-10-16T18:17:00.000-07:002018-10-27T07:03:01.777-07:00IRA contribution limits remain the same for 2015<div class="separator" style="clear: both; text-align: center;"><img border="0" data-original-height="354" data-original-width="630" src="https://2.bp.blogspot.com/-dlqwQa0jlVk/W8aNfV5xhII/AAAAAAAAA88/m-UzT6vTZTIchKZcgwrBMW3aFUt_oYYXACLcBGAs/s1600/IRA.jpg" /></div><div style="text-align: justify;">The caps on how much we can stash in our individual retirement accounts won't be any higher next year.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Savers under 50 will be allowed to invest no more than $5,500 in their traditional or Roth IRA.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Those who are 50 and older can make an additional catch-up contribution of $1,000, raising the total to $6,500.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Those are the same contribution limits as for 2013 and 2014.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The Internal Revenue Service can only boost limits to keep up with inflation, and with the Consumer Price Index up only 1.7% over the past year, the IRS can't even increase the caps a little.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Congress, regrettably, has done nothing to raise the IRA contribution limits.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The only good news is that the income limits are getting a slight bump in 2015, which will allow a few more households to take advantage of an IRA.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Savers who don't have access to a 401(k) retirement plan through their employer can deduct contributions to a traditional IRA from their taxes, regardless of income or whether they're single, head of a household or married and filing jointly.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">But here are the new guidelines for how much you can make and still deduct your contributions to a traditional IRA if you have a 401(k) retirement plan available where your work:</div><div class="separator" style="clear: both; text-align: center;"><img border="0" data-original-height="388" data-original-width="630" src="https://3.bp.blogspot.com/-oXytfCLU1K4/W8aNplvPblI/AAAAAAAAA9M/oAP28le9exglpZ2muX4p6kWeDT0Qo2ifQCLcBGAs/s1600/ira_deduction_limits_2015.jpg" /></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Those incomes are what the IRS calls a "modified adjusted gross income." That's your adjusted gross income with certain items added back in, including foreign income, foreign housing deductions, student loan deductions, IRA contribution deductions and deductions for higher education costs.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Married couples with one spouse participating in a 401(k) plan can:</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Deduct the full amount of their IRA contribution if their modified gross income is $183,000 or less.</div><div style="text-align: justify;">Partially deduct their contribution if their income is between $183,000 and $193,000.</div><div style="text-align: justify;">Deduct none of their contribution if their income is over $193,000.</div><div style="text-align: justify;">Roth IRAs have limits as well, but contributions to Roth retirement plans are made with after-tax dollars, so none of it is tax-deductible.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">As your income level rises, allowable contributions decrease. Here are the guidelines for 2015:</div><div class="separator" style="clear: both; text-align: center;"><img border="0" data-original-height="310" data-original-width="630" src="https://3.bp.blogspot.com/-15eb9Xc1B8o/W8aNudJj0BI/AAAAAAAAA9Q/6AwpnaXOh04IHABRLuwbM4gzFwhJvoz6QCLcBGAs/s1600/roth_ira_income_limits_2015.jpg" /></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Of course, many of us aren't taking full advantage of our IRAs.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">In 2012, individuals younger than 50 could contribute $5,000, and those who were 50 and older could contribute $6,000.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Yet only 6.6% of traditional IRA owners, and 25.1% of Roth owners, put anything in their retirement plans that year, according to a study of 25.3 million accounts by the Employee Benefit Research Institute.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Just 53.5% of those contributing to an IRA in 2012 saved the maximum amount possible, according to the nonpartisan research group.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Making significant, consistent contributions to an IRA is an important step along the road to financial security.</div>Horonoreply@blogger.comtag:blogger.com,1999:blog-1317435032670610488.post-76188556437916744802018-10-16T18:13:00.000-07:002018-10-27T07:03:02.025-07:00Why don't you have one of these mortgages?<div class="separator" style="clear: both; text-align: center;"><img border="0" data-original-height="403" data-original-width="630" src="https://2.bp.blogspot.com/-BjHHTPJ40q0/W8aMqj4s3lI/AAAAAAAAA80/r4Vf9VSoW90434iqUUsDEjL5wl9TzaN6ACLcBGAs/s1600/iStock_000014163623Large_edit-625x400.jpg" /></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Home loans guaranteed by the Department of Veteran Affairs have been growing in popularity over the past few years. Lenders made a record 629,300 VA loans during fiscal 2013.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">And no wonder.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Banks and mortgage companies like them because the VA agrees to cover up to 25% of the loan amount if the borrower defaults.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Home buyers benefit because that protection allows lenders to make VA loans at competitive interest rates, with cheaper terms than conventional mortgages.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">“The VA loan has spectacularly good terms — nothing else comes close,” says Joe Parsons, senior loan officer at PFS Funding, a Dublin, California, mortgage broker.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Yet only a small minority — less than 12% of the 16.4 million service members and veterans with a mortgage — take advantage of VA loans, according to the National Mortgage News.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Is it time for you to consider a VA loan? Here are the key advantages, or perks, they provide.</div>Horonoreply@blogger.comtag:blogger.com,1999:blog-1317435032670610488.post-91559679140045436122018-10-16T18:06:00.000-07:002018-10-27T07:03:02.274-07:00Best 15-year mortgage rates for June charge 2.50%<div class="separator" style="clear: both; text-align: center;"><img border="0" data-original-height="409" data-original-width="630" src="https://3.bp.blogspot.com/-4MbHa5u13q0/W8aLHSo4xGI/AAAAAAAAA8o/bDgmGIcjrD0v-FGwdBOJtxRVkofbpZ5nACLcBGAs/s1600/ab56a5a91431644dc57e031e9b665a54w-c151387xd-w640_h480_q80.jpg" /></div><div style="text-align: justify;">In our roundup of June's best 15-year mortgage rates, you'll find several banks offering cut-rate deals on home loans in areas throughout the country.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">All of the banks on our list are charging borrowers between 2.50% and 2.625% with no points.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">That means you can find a deal that's at least a quarter of a percentage point below the national average of 15-year home loans — 2.97%, according to our latest survey of major lenders.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">These rates are also more than a full percentage point below the average 30-year fixed-rate mortgage cost — 3.73%.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Here are some of the best 15-year mortgage rates banks are offering:</div><h2 class="headline" style="border: 0px; color: #333333; font-family: arial; font-size: 18px; font-weight: normal; margin: 8px; outline: 0px; padding: 0px; text-align: center; vertical-align: baseline;">Banks: Top 15-year mortgage rates</h2><table border="0" cellpadding="4" cellspacing="0" style="border-spacing: 0px; border: 0px; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 16px; margin: 10px auto; outline: 0px; padding: 0px; vertical-align: baseline; width: 580px;"><tbody style="border: 0px; font-family: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><tr style="border: 0px; font-family: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><td class="subhead" style="background-attachment: initial; background-clip: initial; background-image: linear-gradient(rgb(73, 100, 48) 0%, rgb(28, 51, 28) 100%); background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; color: white; font-family: arial; font-size: 12px; font-weight: bold; margin: 0px; outline: 0px; padding: 3px 5px; vertical-align: baseline;">Bank</td><td class="subhead" style="background-attachment: initial; background-clip: initial; background-image: linear-gradient(rgb(73, 100, 48) 0%, rgb(28, 51, 28) 100%); background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; color: white; font-family: arial; font-size: 12px; font-weight: bold; margin: 0px; outline: 0px; padding: 3px 5px; vertical-align: baseline;">Mortgage rate</td><td class="subhead" style="background-attachment: initial; background-clip: initial; background-image: linear-gradient(rgb(73, 100, 48) 0%, rgb(28, 51, 28) 100%); background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; color: white; font-family: arial; font-size: 12px; font-weight: bold; margin: 0px; outline: 0px; padding: 3px 5px; vertical-align: baseline;">Fees</td><td class="subhead" style="background-attachment: initial; background-clip: initial; background-image: linear-gradient(rgb(73, 100, 48) 0%, rgb(28, 51, 28) 100%); background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; color: white; font-family: arial; font-size: 12px; font-weight: bold; margin: 0px; outline: 0px; padding: 3px 5px; vertical-align: baseline;">States</td></tr><tr style="border: 0px; font-family: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><td class="value" style="border-bottom-color: rgb(204, 204, 204); border-bottom-style: dotted; border-image: initial; border-left-color: initial; border-left-style: initial; border-right-color: initial; border-right-style: initial; border-top-color: initial; border-top-style: initial; border-width: 0px 0px 1px; font-family: arial; font-size: 12px; font-weight: bold; margin: 0px; outline: 0px; padding: 5px; vertical-align: baseline;"><a href="https://www.aimloan.com/" rel="nofollow" style="border: 0px; color: #333333; font-family: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" target="_blank">AimLoan</a></td><td class="value" style="border-bottom-color: rgb(204, 204, 204); border-bottom-style: dotted; border-image: initial; border-left-color: initial; border-left-style: initial; border-right-color: initial; border-right-style: initial; border-top-color: initial; border-top-style: initial; border-width: 0px 0px 1px; font-family: arial; font-size: 12px; font-weight: bold; margin: 0px; outline: 0px; padding: 5px; vertical-align: baseline;">2.50%</td><td class="value" style="border-bottom-color: rgb(204, 204, 204); border-bottom-style: dotted; border-image: initial; border-left-color: initial; border-left-style: initial; border-right-color: initial; border-right-style: initial; border-top-color: initial; border-top-style: initial; border-width: 0px 0px 1px; font-family: arial; font-size: 12px; font-weight: bold; margin: 0px; outline: 0px; padding: 5px; vertical-align: baseline;">$1,995</td><td class="value" style="border-bottom-color: rgb(204, 204, 204); border-bottom-style: dotted; border-image: initial; border-left-color: initial; border-left-style: initial; border-right-color: initial; border-right-style: initial; border-top-color: initial; border-top-style: initial; border-width: 0px 0px 1px; font-family: arial; font-size: 12px; font-weight: bold; margin: 0px; outline: 0px; padding: 5px; vertical-align: baseline;">All states except Nevada</td></tr><tr style="border: 0px; font-family: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><td class="value" style="border-bottom-color: rgb(204, 204, 204); border-bottom-style: dotted; border-image: initial; border-left-color: initial; border-left-style: initial; border-right-color: initial; border-right-style: initial; border-top-color: initial; border-top-style: initial; border-width: 0px 0px 1px; font-family: arial; font-size: 12px; font-weight: bold; margin: 0px; outline: 0px; padding: 5px; vertical-align: baseline;"><a href="http://www.rockbottommortgage.com/about-us.html" rel="nofollow" style="border: 0px; color: #333333; font-family: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" target="_blank">RockBottom Mortgage</a></td><td class="value" style="border-bottom-color: rgb(204, 204, 204); border-bottom-style: dotted; border-image: initial; border-left-color: initial; border-left-style: initial; border-right-color: initial; border-right-style: initial; border-top-color: initial; border-top-style: initial; border-width: 0px 0px 1px; font-family: arial; font-size: 12px; font-weight: bold; margin: 0px; outline: 0px; padding: 5px; vertical-align: baseline;">2.625%</td><td class="value" style="border-bottom-color: rgb(204, 204, 204); border-bottom-style: dotted; border-image: initial; border-left-color: initial; border-left-style: initial; border-right-color: initial; border-right-style: initial; border-top-color: initial; border-top-style: initial; border-width: 0px 0px 1px; font-family: arial; font-size: 12px; font-weight: bold; margin: 0px; outline: 0px; padding: 5px; vertical-align: baseline;">$445</td><td class="value" style="border-bottom-color: rgb(204, 204, 204); border-bottom-style: dotted; border-image: initial; border-left-color: initial; border-left-style: initial; border-right-color: initial; border-right-style: initial; border-top-color: initial; border-top-style: initial; border-width: 0px 0px 1px; font-family: arial; font-size: 12px; font-weight: bold; margin: 0px; outline: 0px; padding: 5px; vertical-align: baseline;">Florida, Illinois, Michigan and Tennessee</td></tr><tr style="border: 0px; font-family: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><td class="value" style="border-bottom-color: rgb(204, 204, 204); border-bottom-style: dotted; border-image: initial; border-left-color: initial; border-left-style: initial; border-right-color: initial; border-right-style: initial; border-top-color: initial; border-top-style: initial; border-width: 0px 0px 1px; font-family: arial; font-size: 12px; font-weight: bold; margin: 0px; outline: 0px; padding: 5px; vertical-align: baseline;"><a href="http://sebonic.com/" rel="nofollow" style="border: 0px; color: #333333; font-family: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" target="_blank">Sebonic Financial</a></td><td class="value" style="border-bottom-color: rgb(204, 204, 204); border-bottom-style: dotted; border-image: initial; border-left-color: initial; border-left-style: initial; border-right-color: initial; border-right-style: initial; border-top-color: initial; border-top-style: initial; border-width: 0px 0px 1px; font-family: arial; font-size: 12px; font-weight: bold; margin: 0px; outline: 0px; padding: 5px; vertical-align: baseline;">2.625%</td><td class="value" style="border-bottom-color: rgb(204, 204, 204); border-bottom-style: dotted; border-image: initial; border-left-color: initial; border-left-style: initial; border-right-color: initial; border-right-style: initial; border-top-color: initial; border-top-style: initial; border-width: 0px 0px 1px; font-family: arial; font-size: 12px; font-weight: bold; margin: 0px; outline: 0px; padding: 5px; vertical-align: baseline;">$1,900</td><td class="value" style="border-bottom-color: rgb(204, 204, 204); border-bottom-style: dotted; border-image: initial; border-left-color: initial; border-left-style: initial; border-right-color: initial; border-right-style: initial; border-top-color: initial; border-top-style: initial; border-width: 0px 0px 1px; font-family: arial; font-size: 12px; font-weight: bold; margin: 0px; outline: 0px; padding: 5px; vertical-align: baseline;">All states except Massachusetts</td></tr><tr style="border: 0px; font-family: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><td class="value" style="border-bottom-color: rgb(204, 204, 204); border-bottom-style: dotted; border-image: initial; border-left-color: initial; border-left-style: initial; border-right-color: initial; border-right-style: initial; border-top-color: initial; border-top-style: initial; border-width: 0px 0px 1px; font-family: arial; font-size: 12px; font-weight: bold; margin: 0px; outline: 0px; padding: 5px; vertical-align: baseline;"><a href="http://www.unitedmutualfunding.com/" rel="nofollow" style="border: 0px; color: #333333; font-family: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" target="_blank">United Mutual Funding Corp.</a></td><td class="value" style="border-bottom-color: rgb(204, 204, 204); border-bottom-style: dotted; border-image: initial; border-left-color: initial; border-left-style: initial; border-right-color: initial; border-right-style: initial; border-top-color: initial; border-top-style: initial; border-width: 0px 0px 1px; font-family: arial; font-size: 12px; font-weight: bold; margin: 0px; outline: 0px; padding: 5px; vertical-align: baseline;">2.625%</td><td class="value" style="border-bottom-color: rgb(204, 204, 204); border-bottom-style: dotted; border-image: initial; border-left-color: initial; border-left-style: initial; border-right-color: initial; border-right-style: initial; border-top-color: initial; border-top-style: initial; border-width: 0px 0px 1px; font-family: arial; font-size: 12px; font-weight: bold; margin: 0px; outline: 0px; padding: 5px; vertical-align: baseline;">$1,795</td><td class="value" style="border-bottom-color: rgb(204, 204, 204); border-bottom-style: dotted; border-image: initial; border-left-color: initial; border-left-style: initial; border-right-color: initial; border-right-style: initial; border-top-color: initial; border-top-style: initial; border-width: 0px 0px 1px; font-family: arial; font-size: 12px; font-weight: bold; margin: 0px; outline: 0px; padding: 5px; vertical-align: baseline;">Florida and Maryland</td></tr></tbody></table><div style="text-align: justify;"><b>About the lenders</b></div><div style="text-align: justify;">AimLoan: Headquartered in San Diego, it enjoys an A+ rating from the Better Business Bureau. AimLoan is a direct lender, meaning that your fees may be lower than if you use a mortgage broker.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">RockBottom Mortgage: Gets an A rating from the Better Business Bureau and is headquartered in Des Plaines, Illinois. It charges borrowers a flat fee per loan and doesn't pay commissions to its loan officers, which keeps your interest rate down.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Sebonic Financial: Headquartered in Charlotte, North Carolina, it has an A– rating from the Better Business Bureau. This online lender makes it convenient to apply for a mortgage by letting you upload the documents required to process your loan through a secure website.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">United Mutual Funding Corp.: Gets an A+ Better Business Bureau rating and is based in Brandon, Florida. This direct lender says it will pay you $1,000 cash if you find a better interest rate and fees from another lender.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Credit union deals</b></div><div style="text-align: justify;">While several larger banks are offering great 15-year mortgage rates, it's worth checking at credit unions and local institutions as well. You may find a better deal.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">For example, Teachers Federal Credit Union is offering mortgages at 2.5% with $853.50 in fees to borrowers who live, work (or regularly conduct business), worship or attend school in Nassau County, New York, and some parts of Suffolk County, New York. You can apply in person or online.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">And Langley Federal Credit Union is offering mortgages at 2.50% with $495 in fees to borrowers who work or attend school in Virginia or who join a qualifying local organization. It has an A+ Better Business Bureau rating and is headquartered in Newport News, Virginia.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Finding the best mortgage rates</b></div><div style="text-align: justify;">Even if you don’t live in the areas served by these banks and credit unions, their low rates and fees provide a great blueprint to follow. Find a deal like these in your neck of the woods, and you'll know you've found a great one.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Get started by searching Bankrate's database for the best mortgage rates from scores of other lenders in your area.</div><div style="text-align: justify;"><b><br /></b></div><div style="text-align: justify;"><b>What you'll pay</b></div><div style="text-align: justify;">The biggest drawback to short-term loans like these is that the monthly payments are higher. For a 15-year loan at 2.50%, the principal and interest payment would be $667 a month for every $100,000 borrowed, or $1,334 on a $200,000 loan. With a rate of 2.625%, your principal and interest payment would be $673 a month for every $100,000 borrowed, or $1,345 on a $200,000 loan.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">You can use our mortgage calculator to determine the monthly payments for the amount you want to borrow with this or any home loan.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">It will also provide a month-by-month amortization schedule that shows how much you’ve reduced your debt and how much you still owe if you want to pay off the loan.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Shorter-term loans are particularly popular with borrowers who want to save tens of thousands of dollars in interest by paying off their loans more quickly.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Qualification</b></div><div style="text-align: justify;">Borrowing requirements vary by lender, but to qualify for these low rates, you'll typically need to:</div><div style="text-align: justify;">Be borrowing $417,000 or less.</div><div style="text-align: justify;">Have a credit score of 740 or better.</div><div style="text-align: justify;">Be buying a home or refinancing no more than the outstanding balance of your current home loan.</div><div style="text-align: justify;">Make a down payment of at least 20% if you're buying.</div><div style="text-align: justify;">Hold 20% or more of the equity in your home if you're refinancing.</div><div style="text-align: justify;">In addition, some lenders may require you to maintain an escrow account for property taxes and homeowners insurance to get the best interest rate.</div>Horonoreply@blogger.comtag:blogger.com,1999:blog-1317435032670610488.post-88777200643817311032018-10-16T10:00:00.000-07:002018-10-27T07:03:02.529-07:008 big remodeling mistakes to avoid<div class="separator" style="clear: both; text-align: center;"><img border="0" data-original-height="341" data-original-width="630" src="https://3.bp.blogspot.com/-EBuP5MhDHi0/W8YFwY_qHMI/AAAAAAAAA70/ujxPbeJ_8J8JiYNDH41w65yl0hhj4adbQCLcBGAs/s1600/FHA-203k-1024x555.jpg" /></div><div style="text-align: justify;">Some homeowners get so excited about remodeling jobs, they don't think things through.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">They just jump right in and hire a contractor simply because he's the cheapest, or they fail to set a portion of their budget aside for unexpected costs, such as having to rewire a kitchen that's not up to code.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Yet it's exactly those kinds of predictable pitfalls that turn the renovations of your dreams into a nightmare you'll be reliving, and possibly regretting, for years to come.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Avoid these 8 remodeling mistakes, and you'll dramatically increase the odds of bringing your project in on budget, on time and with absolutely delightful results.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Mistake 1. Not knowing your limits</b></div><div style="text-align: justify;">Home improvement shows love to glorify doing it yourself. You'll not only save money but walk away from the job with a grand sense of accomplishment.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The truth is, it's easy to overestimate your abilities and underestimate how much time a project will require.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Screw it up, and you'll not only wind up wasting hours of your time, you may have to pay a professional to rescue your bathroom or kitchen.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Even if you're determined to put your building knowledge and tool skills to the test, consider this very rational compromise.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Go ahead and do the simpler tasks such as demolition, painting, wallpaper removal, switching out hardware and light fixtures, and refinishing cabinets and woodwork.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">But commit to hiring licensed professionals for more complex jobs that involve plumbing, electrical or structural work.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">We know everyone who's ever seen an HGTV show is just dying to create that open-concept kitchen by tearing down a wall, but really, what do you know about load-bearing joists?</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Seriously. Think long and hard before putting your home at risk of flooding, burning or falling down.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Mistake 2. Ignoring local building codes</b></div><div style="text-align: justify;">Building permits ensure that your project complies with all safety and zoning laws, and applications may require construction drawings from a designer or architect.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Even if you're doing the work yourself, you'll still need a permit.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Projects that affect the structural integrity of your home, such as adding a room to the back or building out a dormer in the attic, almost always require permits, no matter where you live.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Many places insist on city or county approval for much smaller jobs, such as replacing windows or a furnace, landscaping a yard or erecting a fence.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Sound like a big, unnecessary hassle?</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Ha. You don't know what hassles are until building inspectors catch you working without a permit.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Not only could you be fined, but the sale of your home could be blocked and everything you built might have to be torn down and redone.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Mistake 3. Not budgeting for unexpected costs</b></div><div style="text-align: justify;">Mold. Leaks. Corroded pipes. Termite damage. Outdated wiring. Asbestos-wrapped duct work.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The older the home, the bigger the job and the more walls or ceilings you'll be tearing into, the greater the risk of finding expensive hidden problems that simply can't be ignored.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Even the best contractor can't identify these costly surprises before work begins.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If experienced reality television designers and contractors such as Hilary Farr and Jonathan Scott are constantly revamping budgets and plans to deal with the unexpected, why should you be different?</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Set aside at least 10% to 15% more than the estimate you've received from your contractor to keep your project on track.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If you don't have it, then scale back the work or find less expensive materials so you can be prepared.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Any changes to the job once it's underway should be added to your written contract and described in the same detail as the original work.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Mistake 4. Not using a designer</b></div><div style="text-align: justify;">No matter how many issues of Architectural Digest, Dwell and Interior Design you've read, you can't expect a magazine-ready result without some professional help. That means hiring a designer.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Interior design is about more than knowing what area rug would look best with what couch. It's about creating a space that's functional for your lifestyle.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">What would work best if you throw parties regularly? Is it possible to have a glamorous living room with three young children?</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">It's also about fixing or downplaying the unattractive aspects of your space and highlighting its best features.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">How do you make a room with low ceilings feel spacious? How can you showcase the fireplace while still enjoying your TV?</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">You wouldn't try to cater your friend's wedding just because you've watched hundreds of cooking shows. Think about interior design the same way.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">You run a very real risk of spending a lot of money, and being disappointed in the results, if you don't hire a professional to help you think this thing through.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Mistake 5. Hiring the wrong contractor</b></div><div style="text-align: justify;">Any contractor you consider should be licensed and in good standing, should have worker's compensation and liability insurance, and should have a surety bond.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Ask for references, then call those clients to ask how responsive the contractor was, whether he stuck to the schedule and budget and how he handled any problems.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Also check Angie's List, Yelp and the Better Business Bureau. Look for trends in what customers report rather than focusing on any one story.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">But above all, do not pick a contractor based solely on price. Experience, attentiveness and speed matter, too.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">In the long run, even paying up to 20% more isn't going to hurt if it means the difference between a good remodel and a bad one.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Mistake 6. Not creating detailed specs</b></div><div style="text-align: justify;">You must give each contractor and designer you request a bid from a detailed project specification list so you can accurately compare bids.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Your specifications for a general contractor, for example, should include the following:</div><div style="text-align: justify;">Project summary.</div><div style="text-align: justify;">Architect's plans.</div><div style="text-align: justify;">Designer's plans.</div><div style="text-align: justify;">Start and finish dates.</div><div style="text-align: justify;">Details for each trade, such as tile type for a kitchen floor.</div><div style="text-align: justify;">Special parameters, such as limits on work days and times.</div><div style="text-align: justify;">Being clear about the project's details up front will also help you avoid unexpected charges later.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Mistake 7. Starting work without a contract and plan</b></div><div style="text-align: justify;">After choosing a contractor, turn those specs into a detailed written contract that you and your contractor will sign.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">This agreement should thoroughly describe the scope of work, the materials to be used, cleanup and debris removal, the total price and the payment schedule.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Make sure your contract describes the order in which the work will be done. You don't want the new hardwood floors installed before the walls are painted or plumbing getting moved after your new cabinets are hung.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Update the contract any time your plan changes, and walk through the project with your contractor each day to make sure the work is going as planned.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Mistake 8. Compromising your vision</b></div><div style="text-align: justify;">How long has it taken you to save up for your remodeling project? How much time did it take you to come up with your vision?</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Don't let a well-meaning designer, contractor, store employee or friend steer you toward a color, a finish or a layout that's not what your heart is set on. And don't let your frustration with a project that's running off-schedule push you into accepting changes just to get your house and your life back.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Don't use cheap-looking materials. If your budget is tight, get creative about finding high-quality materials at a discount.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">You'll be living with the results for years. You should be happy with what you get.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><i>Have you made remodeling mistakes? What tips would you add to the list?</i></div><div style="text-align: justify;"><br /></div>Horonoreply@blogger.comtag:blogger.com,1999:blog-1317435032670610488.post-41181885585588433482018-10-16T08:47:00.000-07:002018-10-27T07:03:02.781-07:007 big questions your Closing Disclosure can answer<div class="separator" style="clear: both; text-align: center;"><img border="0" data-original-height="419" data-original-width="630" src="https://2.bp.blogspot.com/-PGz4d3eSxCA/W8YIBHsfwEI/AAAAAAAAA8Q/_oIIunWAQV8vArbMStENZPNJHlpBjf6hwCLcBGAs/s1600/credito-hipotecario.jpg" /></div><div style="text-align: justify;">Borrowers who apply for a mortgage now get a five-page form designed to make home loans easier to understand before they finalize the deal.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The Closing Disclosure, as it's called, lays out all of the critical terms of your loan and replaces the old, more confusing HUD-1 Settlement Statement.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">And while consumers usually didn't get a chance to review the HUD-1 until they arrived at the loan closing, the new document must be presented at least three days prior to signing on the dotted line.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">That should give borrowers plenty of time to compare the final terms they're accepting — including such key elements as the interest rate and closing costs — to what they were promised when they applied for the mortgage.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">By matching information on the Closing Disclosure to that on the Loan Estimate they received at the start of the process, consumers can quickly tell if anything has changed.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The borrower can demand an explanation, negotiate a better deal or cancel the loan before walking into a pressure-packed settlement meeting.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">To make sure you're getting the mortgage you expected, find the answers to these 7 critical questions on your Closing Disclosure:</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Question 1. How much am I borrowing?</b></div><div style="text-align: justify;">On the first page of the form, look under the Loan Terms tab for the box labeled "Loan Amount." The amount in that box (see red arrow below) is how much you're borrowing.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If the number is more than the purchase price of your home (or the outstanding balance on a current mortgage you're refinancing), the lender has probably rolled some of your closing costs into the amount you're borrowing.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Those costs show up at the top of Page 3 under the Calculating Cash to Close tab on the line that says "Closing Costs Financed (Paid from your Loan Amount)."</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">It's OK if you don't have enough cash to pay for all of your fees. But you need to know exactly what fees and charges the lender is adding to your loan balance.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">You can also see what you'll end up paying if you make all of the payments — for example, 30 years of payments on a 30-year loan. That figure shows up on Page 5 in the Loan Calculations tab listed as "Total of Payments." Don't be surprised if it's nearly twice the amount you're borrowing.</div><div style="text-align: justify;"><b><br /></b></div><div style="text-align: justify;"><b>Question 2. What's my interest rate?</b></div><div style="text-align: justify;">You'll find this on Page 1 under the Loan Terms tab on the line that says "Interest Rate." (See blue arrow above.)</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If you paid to lock in the rate when you applied, and that lock hasn't expired, the rate your lender promised should be the rate you see listed as your interest rate on your Closing Disclosure. If not, speak up now and demand the rate you were offered.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If you didn't buy a rate lock (or you couldn't close before it expired) and interest rates have risen while your application was being processed, you could end up paying more than you were originally offered.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Question 3. Is this a fixed-rate or adjustable-rate mortgage?</b></div><div style="text-align: justify;">Getting a fixed-rate loan?</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">You should see "No" three times in the Loan Term tab on Page 1 under the question "Can this amount increase after closing?" Plus, the Projected Payments tab should show the same amount for Principal & Interest in Years 1-7 and Years 8-30.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Getting an adjustable-rate mortgage?</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">You should see "Yes" three times in the Loan Term tab under the question "Can this amount increase after closing?" Plus, the Projected Payments tab should show different amounts for Principal & Interest in Years 1-7 and Years 8-30.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">This is something that should not have changed between your Loan Estimate and Closing Disclosure.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Question 4. What's my monthly payment?</b></div><div style="text-align: justify;">The Projected Payments tab on Page 1 breaks down the three major parts of a loan payment and shows how they will change over time.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Principal & Interest: This is what you're paying to reduce the amount you borrowed and cover the interest charges. You may see this cost increase in later years if you have an adjustable-rate loan.</div><div style="text-align: justify;">Mortgage insurance: This coverage limits the lender's losses if you don't make your payments. Banks and mortgage companies usually require this protection when buyers put less than 20% down on a home. During the first seven years of the loan, you'll see a monthly premium. After that, the charge is usually zeroed out because you'll have enough equity in your home to drop the coverage. (Click here for more information on mortgage insurance.)</div><div style="text-align: justify;">Estimated Escrow: Some lenders collect the money needed for recurring expenses (such things as property taxes, homeowners insurance and association fees) in advance and pay those bills on your behalf. To see which bills your lender escrows for, look at the Other Costs tab on Page 2 of the form. Even though the "Estimated Escrow" line might not increase over time, you should fully expect this part of your monthly payment to rise as those premiums, taxes and fees go up.</div><div style="text-align: justify;">At closing, you'll probably need to reimburse the sellers for your portion of this year's bills that they already paid.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">For example, let's say they paid an annual community association fee of $1,200 in January. If you will own the house starting in July, you'd pay the sellers half of that $1,200 ($600) because you'll own the house for half the year. Look for those amounts in the "Seller-Paid" column listed under "Before Closing."</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Question 5. What's this mortgage going to cost me?</b></div><div style="text-align: justify;">When you applied for your mortgage, your lender listed on your Loan Estimate all of the fees you had to pay. Those charges showed up on Page 2 under the Loan Costs tab.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Now you can pull out your Loan Estimate and compare what's on that form to the amounts on Page 2 of your Closing Disclosure form.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">There are fees that can't increase, fees that can rise 10% and fees that can be any amount.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The lender typically can't increase these fees (as long as there were no problems with your credit or employment verification and appraisal showed you didn't overpay or underpay for your home):</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The items listed under "B. Services Borrower Did Not Shop For" that your lender made you buy from another company.</div><div style="text-align: justify;">Transfer Tax listed in the Other Costs tab under "E. Taxes and Other Government Fees."</div><div style="text-align: justify;">Fees you paid to the lender.</div><div style="text-align: justify;">Fees for services you had to buy and that you purchased from a company that's affiliated with your lender and was on your lender's list of approved providers.</div><div style="text-align: justify;">The lender typically can pass along an increase of up to 10% for:</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Recording fees.</div><div style="text-align: justify;">Fees for services you chose to purchase from a company on your lender's list of approved providers, as long as that company isn't affiliated with your lender.</div><div style="text-align: justify;">These fees can rise by any amount:</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Prepaid interest, homeowners insurance premiums or initial escrow account deposits.</div><div style="text-align: justify;">Cost of services the lender made you buy that you shopped for yourself and purchased from a company that's not on your lender's list of approved providers.</div><div style="text-align: justify;">Cost of services you chose to buy that the lender didn't make you buy (like an owner's title insurance policy).</div><div style="text-align: justify;">Seeing fees that went up when they weren't supposed to? Ask for an explanation. Most lenders use software to make sure they comply with the rules on fee increases, but it's possible someone made a mistake.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Question 6. Am I being charged points?</b></div><div style="text-align: justify;">Discount points are interest you prepay at closing in exchange for a lower interest rate. That's why paying points is sometimes called "buying down the rate."</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">One discount point (1% of the loan amount) typically decreases the interest rate by 0.1625 to 0.25 of a percentage point on a 30-year mortgage.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If you chose to buy down your interest rate, the fee shows up on Page 2 in the Loan Costs tab under "Origination Charges" on the top line "X% of Loan Amount (Points)." (See red arrow above.)</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If you didn't agree to pay points, but points show up on the form, talk to your lender.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Question 7. How much money do I need to bring to the loan closing?</b></div><div style="text-align: justify;">The money you need to bring to your settlement shows up on Page 3 in the Calculating Cash to Close tab.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The Closing Disclosure should explain any costs that have changed since you got your Loan Estimate. Ask about any changes you don't understand.</div>Horonoreply@blogger.comtag:blogger.com,1999:blog-1317435032670610488.post-5585344072223958442018-10-16T08:43:00.000-07:002018-10-27T07:03:03.033-07:00Blame your brain for your lack of savings<div class="separator" style="clear: both; text-align: center;"><img border="0" data-original-height="307" data-original-width="630" src="https://3.bp.blogspot.com/-r7LDKNllHTk/W8YG-KAB4VI/AAAAAAAAA8I/E0rznIuAeQsaHeZwJmR-jf3BpKSD5u0iQCLcBGAs/s1600/MoneyMarket-610233664.jpg" /></div><div style="text-align: justify;">We know that we should be saving for the future.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">But many of us don’t. A recent study found that half of Americans have virtually no savings at all.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">While some may blame a low-paying job or out-of-control spending, the real reason might be in our heads.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Recent neuroscientific research suggests that our minds aren’t optimally designed to encourage long-term savings.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Before humans evolved to walk upright, most of our decision-making occurred in the more primitive parts of the brain lodged near the neck, just above the spinal column.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">As you might expect, these highly preserved systems focus our attention on the most basic aspects of survival. Finding food. Getting out of the cold. Having sex.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">In the thousands and thousands of years of our existence on the planet, these reptilian brains (so called because of their similarity to the brains found in reptiles) have not changed much.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">They’re still all about immediate gratification.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The part of the brain that has changed most dramatically during our tenure on Earth is the frontal cortex.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Located above the eyes, this region of the brain, often referred to as the frontal lobes, is responsible for executive function. The frontal cortex is implicated in higher mental functions like planning, decision making, inhibiting behavior and morality.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">This part of the brain might well be described as the mature bit, helping us to carefully weigh the consequences before we act and considering our future as we do so.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">A neural pathway called the mesocortical limbic system connects these two discordant brain regions through the brain’s emotional centers and helps us weigh the risks and rewards as we make decisions.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">But this particular setup means that these two areas are often in competition, which can make it more difficult for us to save money.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">David Laibson, an economist at Harvard University, says the brain’s machinery is very good at telling us what to do in response to stimuli with immediate consequences.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">“It’s harder to make decisions when the consequences are weeks or months or even decades away,” he says.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Immediate purchases are very rewarding, resulting in feelings of pleasure. There is simply not the same kind of rush involved with socking money away into your 401(k) plan.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Laibson’s work has consistently demonstrated that our frontal lobes, the seat of rationality and planning, can appreciate delayed gratification.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The reptilian brain, however, is much more attuned to the present.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">So when it comes to making a decision about what to do with $100 — buying that new gadget or saving it for a rainy day — the gadget will usually win out.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">“We have a natural urge to deal only with the present,” Laibson says. “It’s not that the future is completely invisible or irrelevant in our decision making; it’s just that we are biologically inclined to overweight the present.”</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Laibson emphasizes that this doesn’t mean we are incapable of saving, just that we may not always be able to rely on our own self-control to do it.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">“One of the easiest ways to save is to just put it on autopilot. Tell your employer to take a fraction of your paycheck and put it into your 401(K) plan. Don’t even let that money get to your checking account,” he suggests.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Laibson also says that you can curb the desire to overspend by using a debit card instead of a credit card. “Tie your own hands so you can’t be tempted to overspend,” he says.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Paul Zak, a neuroeconomist at Claremont Graduate University and the author of The Moral Molecule: The Source of Love and Prosperity (Penguin Group, $26.95), says that we can actually use some of our biology to help us save better.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Oxytocin, a neurochemical that is also critical to mesocortical limbic function, is implicated in trust and social behaviors. By adding a social element to your saving, you can also help suppress the desire for immediate gratification by having a social reward that replaces the spending one.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">“What we’ve shown in our oxytocin research is that social support is very important to savings,” Zak says. “The best savings often happen when you make those decisions with other humans involved, with a spouse or in investment clubs. By adding that social element, and releasing more oxytocin, people become more patient and become better savers.”</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">While some may see Laibson’s work as an indicator that humans are hard-wired for spending over saving, he says that’s incorrect.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">But knowing that there is a neurobiological predisposition to favor the present over the future is important as you consider your financial plans.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">“We need to match our spending behavior to our good intentions,” Laibson says. “It’s clear that savings are not impossible. But you need to know that you can’t always rely on perfect self-control to make those savings happen.”</div>Horonoreply@blogger.comtag:blogger.com,1999:blog-1317435032670610488.post-707981208252398802018-10-16T08:31:00.000-07:002018-10-27T07:03:03.280-07:00Tricky and unfair costs marred the refinancing of my FHA loan<div class="separator" style="clear: both; text-align: center;"><img border="0" data-original-height="354" data-original-width="630" src="https://3.bp.blogspot.com/-9NTur3RIZmQ/W8YEUXb-uSI/AAAAAAAAA7o/sMMEBywNCMMm23k8sCGMMN-wqDBCEY8MgCLcBGAs/s1600/7-facts-about-fha-loans.jpg" /></div><div style="text-align: justify;">As if the high up-front and monthly mortgage insurance premiums weren't enough, the Federal Housing Administration has been systematically overcharging borrowers at the closing table when they refinance an FHA loan.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">That has occurred whether it's an FHA to FHA refinance (called a streamline refinance) or an FHA to conventional refinance.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Even savvy borrowers like me weren't aware of what was happening.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">I didn't notice it the first time I refinanced my FHA loan. With so many closing costs, it's always hard to tell what's going where.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">I did notice it the second time, when my refinance was much simpler, thanks to switching to a conventional loan, but I couldn't explain what had happened until a recent interview source tipped me off.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Joe Parsons, a senior loan officer with PFS Funding in Dublin, California, pointed me to a post he’d written on his blog, The Mortgage Insider, about a sneaky additional cost of FHA loans.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Parsons helped me figure out why I appeared to have overpaid on certain closing costs the FHA charged me.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The first was interest. My loan closed a few days before the end of the month. Instead of paying interest for the number of days I actually had my FHA loan, I paid interest for the entire month.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">That cost me about $180.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The second was monthly FHA mortgage insurance premiums.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">I had to pony up two months' worth of extra MIPs at closing, seemingly for months when I would no longer have my FHA mortgage. That cost me another $300.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">I assumed that my old lender who serviced my FHA loan had made a mistake in calculating these charges, so I wrote a letter asking for a refund.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The lender sent me a poorly designed escrow account statement that failed to clarify anything.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">I sent another letter.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">I got an actual letter back the second time, but I was still confused by the response.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Based on my own experience and what I've heard, even those who work in the mortgage industry don't always understand what's going on. There are just too many rules.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">So I gave up. I'm self-employed, and sometimes my time is better spent doing more work than chasing lost money.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">But a recent press release from the Department of Housing and Urban Development sheds light on what's been going on and says things are going to change soon.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">"Borrowers who prepay their FHA-insured mortgages will not have to make interest payments beyond the date their mortgage is paid in full," it says.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">This change applies to FHA loans that are paid off on or after January 21, 2015.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Until then, if you refinance an FHA loan, tell your lender at the beginning of the refinance process that you insist on closing on the last day of the month.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Of course, you wouldn't want to be so adamant that you lost out on the best possible interest rate.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">But all else being equal, you should try to avoid paying unnecessary interest to the FHA.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Suppose you owe $300,000 on your 30-year, fixed-rate FHA loan that has a 4.0% rate. Right now, if you refinance out of that loan on the first of the month, you’ll still pay a full month’s worth of interest on the loan.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">That’s $1,000 in interest for a loan you no longer have, and $1,000 you wouldn’t have to pay if you were refinancing a conventional loan. What a raw deal.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Unfortunately, the new rule doesn't address the excessive charge for mortgage insurance.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">“Every FHA loan I have paid off has had two months of MI paid,” Parsons says.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">MIPs are paid in arrears, like mortgage interest, so it makes sense that you'd pay one extra monthly mortgage insurance payment at closing — though it should be prorated, like interest.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The second mortgage insurance payment is just a shameless money grab — and one you probably can't do anything about.</div>Horonoreply@blogger.comtag:blogger.com,1999:blog-1317435032670610488.post-33440813548457427702018-10-16T08:28:00.000-07:002018-10-27T07:03:03.530-07:00Bank of America is offering cheap car loans<div class="separator" style="clear: both; text-align: center;"><img border="0" data-original-height="419" data-original-width="630" src="https://4.bp.blogspot.com/-bWi-IBXeTZM/W8YDjaZXPpI/AAAAAAAAA7g/P0qUTi_2-U8allkE6PJgT_xWBCcO09t_ACLcBGAs/s1600/Rubique-Carloan-3-653x435.jpg" /></div><div style="text-align: justify;">Bank of America is offering good deals on auto loans this fall, with rates starting as low as 2.34% APR on 60-month financing for new cars and trucks.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">That's what you'll pay if you have a checking or savings account at the nation's second-largest bank. If not, you'll be charged a slightly higher 2.49% APR.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Both of those rates are considerably lower than the national average for 60-month loans — 4.02% APR, according to our latest survey of major lenders.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Borrow $25,000 for five years at 2.49%, and you’d pay $444 a month. Finance the same amount at the national average of 4.02%, and the monthly payment would jump to $461 a month.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Over the course of the loan, you'd save just over $1,000 in interest charges.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">What really got our attention are the bank’s used car loans. You can borrow money to buy preowned autos and trucks for as little as 2.49% APR over five years with the customer discount, or 2.64% APR for non-account holders.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Most lenders charge much higher rates for used-car financing. In fact, our survey average for preowned auto loans is currently 4.73% APR. And that’s just for three years.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Search our database of the best auto loan ratesfrom dozens of other lenders in your area to see if you can find a better deal.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Then, you can use our auto loan calculator to help you budget your monthly payment.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">These loans are only available for vehicles sold through new-car dealers, and you'll need good credit to qualify for the lowest interest rates. You have the best chance of qualifying if your FICO credit score is in the mid-700s and up.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">You can apply online at Bank of America and receive a decision in as little as 60 seconds. There is no loan documentation fee.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Knowing about a deal like this makes it much easier to judge any loan you're offered by a dealer's finance manager.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If he or she can beat Bank of America’s terms, then you’ll know you negotiated a real bargain. If not, you can go with the bank’s offer.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If you're planning to buy a new car soon, our 5 simple steps to the best deal on a new car or truck can help you shop with confidence.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">If you’re shopping for a preowned car, follow our 10 smart moves for buying a used car to help you avoid costly traps.</div>Horonoreply@blogger.com