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The Least Reliable Cars of 2012

admin — Sun, 27 May 2012 15:00:48 +0000

Car shopping over Memorial Day Weekend is as American as baseball and apple pie. Before you head out to the dealership, put on your sunscreen and take off your rose colored glasses. All cars are not created equal. Buying a car has its potential risks – especially if you do not take the time to discover which ones you should avoid. Sooner or later every manufacturer is going to produce a car that has a lot of problems, and this has been seen in many cars recently. The good news is that some American car manufacturers seem to be getting better at it, becoming just about as reliable as Asian made cars, says Consumer Reports (CR). In order to avoid buying one of the least reliable cars, you need to do some research before purchasing your next vehicle. Jaguar XF and XJ When it comes to reliability, you would almost think that price should affect quality. Unfortunately, that is not the case. Two cars that were determined to be the most unreliable cars by Consumer Reports (as reported in LA times), were two models from Jaguar – the XF (worst) and the XJ (second worst). Audi Q5 The number three spot on the list from Consumer Reports was the Audi Q5. This is the V6 model, with a 3.2 L engine. It also has an eight-speed transmission and a lot of other luxuries. It starts out at about $35,000. When you want accurate information, it is important to realize that the basis of deciding which vehicle is reliable or not is based on consumer complaints, says Consumer Reports . This means that accuracy for the current year, or even the last year, may change slightly if given another year or two, so it is important that you consider the source’s date when the information was released. 2012 Cadillac Escalade When it comes to SUV’s, it seems that the Cadillac Escalade takes the lowest unreliable car position with Forbes . They attribute this rating largely to “poor braking, handling and fuel economy.” It gets about an amazing 13mpg. 2012 Chevrolet Colorado/GMC Canyon These two vehicles, which are mid-size trucks, rated just one above the Escalade. These vehicles were the only two that received less than half of the owners’ responses saying that they would ever buy the same model again. Other problems fell in the accident avoidance category, and they did not fare well in crash tests. Both the Colorado and Canyon start out about $17,500. 2012 Dodge Avenger The Dodge Avenger was improved over previous years, but it still lacked when put up against comparable cars. Although it did handle very well, other problems were related to road noise, speeding up and braking, transmission, fuel economy and more. Depending on the model, prices start out around $19,000. 2012 Jeep Wrangler Unlimited/Jeep Liberty The Jeep Wrangler Unlimited, an American-made vehicle, was right near the bottom of the list at Consumer Reports . It scored a 20 out of a possible 100 in the CR scoring system. Although the Jeep Liberty was right above it, it scored a mere 27. 2012 Jeep Compass This vehicle faired similarly to its sisters, and it actually came in at the very bottom of the ratings. It had problems with engine noise, speeding up and braking, comfort and visibility (rear). Although it did go through some improvements from previous years, apparently consumers think the changes were not enough. It starts out at above $19,000. This list shows clearly that all bright and shiny cars are not everything that you might expect. The good news is that CR says that “Buying a used car becomes less of a gamble with every passing year,” and a number of companies are getting better. It also named two automakers as having the most improvements recently, and that was Toyota and Honda. Reading car reviews before you buy will enable you to avoid the least reliable cars.

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The Least Reliable Cars of 2012

Loan Details Spell Out What Is a Mortgage

admin — Sun, 27 May 2012 14:05:56 +0000

Most people know the basics of a mortgage . They understand that when a person wants to buy a house, they get a loan from the bank. That loan is called a mortgage. That loan, its requirements and obligations, is the fundamental description of what is a mortgage. There are a lot more little nuances to this loan than many people think. And there are a quite a few things that any new applicant for a mortgage should take into consideration. The word mortgage itself comes from two Latin words . The word mort meaning “dead” and the word gage meaning “pledge.” This dead pledge is one that will exist until the loan is repaid, or dead. The lending institution enters into a contract to lend the money to the buyer. In exchange, the buyer agrees to pay back a set amount for a set period, until the pledge is dead. These set payments consist of four parts: principle, interest, taxes, and insurance. Collectively these are known as PITI. The total amount of the loan is typically amortized over 15 or 30 years. For most loans the borrower can know they will never owe the bank any more than that set amount for principle and interest each month. What will change, however, is the taxes and insurance part. Taxes almost always go up, and insurance costs increase with time. So as long as the borrower owns the home, they can be assured that the PI will remain level, and the TI will increase every year. The biggest thing to be aware of when getting into a mortgage is that this is not a short term loan. Even when the buyer only plans to live in the house a few years, they will have to go through the entire application process. This process is complex, and it takes a lot of time to understand (if you want to know what is coming and where the process begins, check out the many articles on Primerates.com about mortgages ). The loan process takes time, so the very best thing any applicant can do is to know what to expect, and prepare for it. Buying a house is an exciting venture. It is also incredibly frustrating for those who did not do their homework. Understanding what is a mortgage is the first step. The next is for the buyer to shop around so they can find the best deal on mortgage rates out there. Finally, they must realize they are in this for the long haul. These loans are designed to last 15 or, in most cases, 30 years. Becoming educated on the loan process is the best way to prepare for that commitment.

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Loan Details Spell Out What Is a Mortgage

What is Investment in Financially Uncertain Times

admin — Sun, 27 May 2012 14:00:49 +0000

The decision to start investing is one most people make with excitement. The idea of saving money, potentially earning double-digit returns, and figuring out a plan for when you can retire are all great motivators. But when you look at all the options out there, having only a basic idea about what is investment, and all the definitions and terms are enough to put a person off the topic. With so many different places to put money, different financial services companies, and different products, where do you even begin? Let’s start with the definition. To invest is to commit (money or capital) in order to gain a financial return . This can include a great number of places to put money, but there are some misconceptions on what investing really is and is not. An investment account is not a savings account. Investing is saving for the future and future expenses. Savings accounts are kept because people want their money safe, and often are used for shorter periods of time. The easiest way to spot a savings account (a money market account is also a savings account) is to look to see if the account has the seal of the Federal Deposit Insurance Corporation (FDIC). By putting money into an FDIC insured account people are sacrificing some of the gains they could make, for the government backed guarantee that their money will be there when they need it, even if the institution holding the money fails. This is not to minimize the importance of an emergency fund, however. A safe and secure cash holding is an important part of any portfolio, and most experts will agree that 1 to 2 years living expenses should be held in a liquid (easily accessed without penalties) holding. Investing, especially in individual stocks, is often seen by many as gambling. There is a big difference between playing games of chance with the hope of winning, and investing money. When a person gambles the odds are all on the house. The majority of the time the casino will win, and they will pay out to some of the players to keep them enticed and coming back for more. Investing, on the other hand, is taking a calculated risk in order to make a return on investment. When a person gambles they enter the casino with the hope to come out ahead. When a person invests they expect to come out ahead. Investing is not taking the safe and secure route, and it is not throwing money away in the hopes of a big win. What every investor does is buy a small portion of a company. By owning a piece of the company, the investor will then share the burden if the company performs poorly, and they will share the prosperity if the company does well. There is no business model around that does not seek to maximize profits, and when a company has a great business model, such as those followed by many of the major successful corporations, they are more likely to yield great profits. Investing is setting aside money for the long term. There are no savings or money market accounts that will pay the same amount in interest that a person can get when they make smart investments. So when a person is saving for a big purchase, such as saving for retirement, they need to make better gains in order to meet their goal in a timely fashion, something that a savings account yielding just 1% or 2% interest cannot provide. With the futures of programs such as social security and employer sponsored pensions uncertain, people must provide at least a part of their retirement income themselves. Understanding what is investment is only half the battle, knowing where to put money is also important.

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What is Investment in Financially Uncertain Times

Consumer Sentiment at the Highest Since October 2007

admin — Fri, 25 May 2012 17:18:29 +0000

The Consumer Sentiment report from Reuters/ University of Michigan shows yet another increase in consumer confidence. The index is up to 79.3, a rise of 2.9 since April, and 1.5 since the survey two weeks ago. This latest jump adds to the continued long-term increase in consumer confidence, hitting the highest point since October of 2007. Favorable job growth over the last few months is one of the main reasons for the increase in consumer confidence. Although job growth is believed by many to be modest over the coming years, the labor market feels that wages should continue to increase and jobs should become more readily available in the future. This leads to an overall positive economic outlook, and is helping to spur sales of household durable goods and new vehicles. All of which in turn lead people to feel the economy is on the right track and looking upward. There are many things that consumers can be worried about. Gas prices have fallen slightly, but only after a large increase. Despite the high costs at the pump, consumers do not appear to be worried about future increases in the cost of gasoline. The European financial crisis has many investors worried and the woes over there are stifling U.S. markets. Consumers, on the other hand, see this as having little affect on the American economy, and have all but passed the crisis off as unimportant in their lives. While political debate is often a source of great consumer frustration, it appears as though consumers have learned to ignore politicians arguing. Until something actually happens, such as new tax policies, there is little concern for what is happening in Washington. Consumers are remaining upbeat about the U.S. Economy. Since many of the numbers, including jobless claims , an increase in home sales , and a positive outlook from the FOMC , are all indicators that the economy is indeed recovering. The growth is slow and steady, and how far we have come can truly be seen by comparing year over year numbers. Chief economist Richard Curtin says, “The most likely prospect is that… confidence remains largely unchanged until after the November election…” Until something big comes along and could upset the growth, consumers should remain positive. The consumer sentiment index is compiled via telephone surveys of 500 households twice per month. The households are asked to rate how they feel the outlook is on U.S. Economy. These numbers are compiled by Thomson Reuters and The University of Michigan and released to the public early and late each month.

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Consumer Sentiment at the Highest Since October 2007

Curse of the Lottery Winner

admin — Fri, 25 May 2012 14:49:39 +0000

When somebody wins a significant amount of money, something strange – the curse of the lottery winner – happens. Suddenly, everyone around them becomes extremely greedy. They feel that since they know the person, they are entitled to some of the winnings. To make things worse, they attempt to impose such a guilt trip on the recipient, trying to convince him or her that they are being cheap by not sharing their wealth. The truth is, people lucky enough to win the lottery are already dealing with enough of their own problems, let alone trying to solve the problems of their friends and family. Wouldn’t it be great to win the lottery? Many people fantasize about how their problems would all be over if they could just win a substantial amount of money from the lottery. But unlike an inheritance, where the person feels connected to the windfall and is less likely to blow it, and unlike a refund that is often too small to make a huge difference, lottery winnings are met with a different psychological outlook. The recipient feels they did not put any hard work into it so he or she should buy anything and everything and their money woes are over forever. They live the good life for a while, then as suddenly as they became rich, they are left without anything. The sad truth is that many lottery winners often go bankrupt within just a few years of their windfall. The reason is debated, but psychologists have narrowed it down to two issues. First, those who play the lottery, and subsequently win, are often less educated than the average American. This means they do not have the financial knowledge to properly budget their money. The other reason is simply that this money did not come from earnings. As they say, “easy come, easy go.” Check out these 10 stories of people who lost everything after winning the lottery. It is easy to sit back and think that all life’s problems would be over if you could just win the lottery. Unfortunately, so many new problems arise after a sudden influx of unearned money. Without developing a plan as to where the money will go, many people end up in the same situation as those 10 in the link above and they curse the day they won the lottery. They think they will sit back and relax enjoying not having to go to work everyday, but eventually they get bored. Spending goes wild on unnecessary items, and in the end, they often are left with less than they started (not to mention strained relationships). Instead of living the high life after winning the lottery the first thing you should do is sit down with a trusted advisor. Get the money into places that are locked in and hard to access. Donate a significant portion to favorite charities (it will lessen the tax burden if nothing else). Keep it quiet, nobody wants to end up like Jeffery Dampier . As for myself, if I ever happen to win I have already decided that I will pay off my house; the rest is going to charity. The curse of the lottery winner is just one problem I do not wish to deal with.

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Curse of the Lottery Winner

Where to Get a Car Loan If You Have Bad Credit

admin — Fri, 25 May 2012 14:41:13 +0000

After the recent economic problems that our country has experienced, there is no doubt that it is now harder to get a car loan than it was before. The good news is that it is still possible, but you have to know where to get a car loan in today’s economic climate. Car loans can be obtained even with bad credit, says BankRate.com , because a lender knows that if you do not pay, they can rather easily repossess your car. So, instead of worrying about whether or not you can get an auto loan, focus on trying to get the best deal you can. Start out by taking a good look at your credit score. The lender will be sure to look at this, as well as your employment – and possibly your income, too. Get your credit reports and make sure that there are not any problems with the things that have been reported on them. If there are mistakes, you need to wait up to about six weeks after any corrections to be sure that they have been reported. Go to your own bank first, and see what kind of rates they will give you. They are already familiar with your finances, and may be able to give you a better deal. At least find out what they can do, and then go to other lenders and get a quote for comparison. You need to be aware that different lenders will look at your credit score in different ways. Some may be more interested in giving you a used car loan than with your credit, if it is not too bad. Others may reject you, but you won’t know until you try. Don’t stop getting quotes either, until you have several, because a better deal may be at the next lender you visit. You can do some of this online, but you may want to visit lenders that are local to you. When you have bad credit, you want to be especially careful not to buy more car than you can afford. Building your credit comes when you make your payments on time and for at least the minimum amount due. You need to be sure that you can do this consistently, and when you do, it will raise your credit score over time. If necessary, you might use a car loan calculator, such as the one at Money.MSN , to help determine what your monthly payments will be. Don’t forget to find out how much your car insurance is going to be, too, before you buy. Be careful to not extend the car loan over too long a period a time. If you do this, two things can happen. First, you will be paying a lot more for the car than necessary. While it will give you the benefit of lower payments, sometimes, longer car loans have higher interest rates. A second problem is that, if you are buying a used car, that the car may become worthless before you finish paying for it – and then you have to buy another one. You can get a pre-approved car loan from a lender even before you go shopping. This will tell you what the bank thinks you can handle financially, and then you simply take the check to the dealership. By knowing where to get a car loan before you go shopping, you can negotiate with confidence. Be sure to haggle with the dealer, because this will give you an even better deal – and lower payments. Since you will be writing in the amount on the check once the agreement is completed, you will only owe the amount for the car you agreed to on your car loan.

Tampa/St. Petersburg Mortgage Rates Survey – Week of May 21, 2012

admin — Fri, 25 May 2012 14:15:42 +0000

According to a recent Primerates.com survey of Tampa/St. Petersburg mortgage rates offered by the largest area banks & credit unions, two Tampa/St. Petersburg institutions offered rates below 4.00% on 30-year fixed-rate conforming loans in the St. Louis area for well-qualified borrowers. The Whitney Bank ( www.hancockbank.com ) offered rates at 3.75% and TD Bank ( www.tdbanknorth.com ) offered rates at 3.88%. While most lenders will push one of the three products on the list below, there are other options for the borrower. The 30-year fixed rate loan is the most popular since it offers the lowest monthly payment. The trade-off is paying a higher interest rate. For those who have a better cash flow, the 15-year product may be more suitable. The 15-year fixed rate loan will allow the borrower to pay more toward principal with each payment, and since it has a lower interest rate the overall amount of money that is paid in interest will be much lower. While many people steer clear of the 5/1 ARM it is beneficial to some borrowers. For instance, a person with a smaller loan (usually due to refinancing) may have the cash flow to pay off their ARM in 5 years or less. This person could save an extra 1% in interest payments over the 15-year product and never worry about the rate adjusting later in the life of the loan. Top Tampa/St. Petersburg Area Banks and Credit Unions As of 30 Yr-Rate 30 Yr-APR 15 Yr-Rate 15 Yr-APR 5/1 ARM-IR 5/1 ARM-APR TD Bank 5/21/2012 3.88% 3.91% 3.25% 3.30% 2.75% 3.11% Whitney Bank 5/21/2012 3.75% 3.78% 3.13% 3.19% NA NA Listed rates from banks, thrifts, and credit unions were listed on their websites on the date indicated for conforming loans with 0 points. Data is believed accurate at time of collection, can change without notice, and will vary based on an individual’s credit history. Contact a specific institution for current rates.

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Tampa/St. Petersburg Mortgage Rates Survey – Week of May 21, 2012

St. Louis Mortgage Rates Survey – Week of May 21, 2012

admin — Fri, 25 May 2012 14:10:56 +0000

According to a recent Primerates.com survey of St. Louis mortgage rates offered by the largest area banks & credit unions, four St. Louis institutions offered rates below 4.00% on 30-year fixed-rate conforming loans in the St. Louis area for well-qualified borrowers. The Commerce Bank ( www.commercebank.com ) and PNC Bank ( www.pnc.com ) offered rates at 3.75%. UMB Bank ( www.umb.com ) offered rates at 3.92%. Two other institutions, namely the M&I Marshall and Ilsley Bank ( www.mibank.com ) and Reliance Bank ( www.reliancebankstl.com ) offered rates at 4.00%. While most lenders will push one of the three products on the list below, there are other options for the borrower. The 30-year fixed rate loan is the most popular since it offers the lowest monthly payment. The trade-off is paying a higher interest rate. For those who have a better cash flow, the 15-year product may be more suitable. The 15-year fixed rate loan will allow the borrower to pay more toward principal with each payment, and since it has a lower interest rate the overall amount of money that is paid in interest will be much lower. While many people steer clear of the 5/1 ARM it is beneficial to some borrowers. For instance, a person with a smaller loan (usually due to refinancing) may have the cash flow to pay off their ARM in 5 years or less. This person could save an extra 1% in interest payments over the 15-year product and never worry about the rate adjusting later in the life of the loan. Top St. Louis Area Banks and Credit Unions As of 30 Yr-Rate 30 Yr-APR 15 Yr-Rate 15 Yr-APR 5/1 ARM-IR 5/1 ARM-APR U.S. Bank 5/21/2012 3.88% 3.94% 3.13% 3.23% 2.75% 3.54% Commerce Bank 5/21/2012 3.75% 3.80% 3.00% 3.09% 2.88% 2.92% M&I Marshall and Ilsley Bank 5/21/2012 4.00% 4.03% 3.25% 3.31% 2.63% 2.95% PNC Bank 5/21/2012 3.75% 3.74% 3.00% 2.95% NA NA UMB Bank 5/21/2012 3.92% 4.05% 3.00% 3.23% 2.75% 3.28% Reliance Bank 5/21/2012 4.00% 4.02% 3.38% 3.41% 3.00% 3.18% Listed rates from banks, thrifts, and credit unions were listed on their websites on the date indicated for conforming loans with 0 points. Data is believed accurate at time of collection, can change without notice, and will vary based on an individual’s credit history. Contact a specific institution for current rates.

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St. Louis Mortgage Rates Survey – Week of May 21, 2012

Seattle/Tacoma Mortgage Rates Survey – Week of May 21, 2012

admin — Fri, 25 May 2012 14:05:37 +0000

According to a recent Primerates.com survey of Seattle/Tacoma mortgage rates offered by the largest area banks & credit unions, three Seattle/Tacoma institutions offered rates below 4.00% on 30-year fixed-rate conforming loans in the Seattle/Tacoma area for well-qualified borrowers. The HomeStreet Bank ( www.homestreet.com ) offered rates at 3.75%. U.S. Bank National ( www.usbank.com ) and KeyBank National ( www.key.com ) offered rates at 3.88%. two other institutions, namely the Washington Federal ( www.washingtonfederal.com ) and the First Savings Bank Northwest ( www.fsbnw.com ) offered rates at 4.00%. While most lenders will push one of the three products on the list below, there are other options for the borrower. The 30-year fixed rate loan is the most popular since it offers the lowest monthly payment. The trade-off is paying a higher interest rate. For those who have a better cash flow, the 15-year product may be more suitable. The 15-year fixed rate loan will allow the borrower to pay more toward principal with each payment, and since it has a lower interest rate the overall amount of money that is paid in interest will be much lower. While many people steer clear of the 5/1 ARM it is beneficial to some borrowers. For instance, a person with a smaller loan (usually due to refinancing) may have the cash flow to pay off their ARM in 5 years or less. This person could save an extra 1% in interest payments over the 15-year product and never worry about the rate adjusting later in the life of the loan. Top Seattle/Tacoma Area Banks and Credit Unions As of 30 Yr-Rate 30 Yr-APR 15 Yr-Rate 15 Yr-APR 5/1 ARM-IR 5/1 ARM-APR U.S. Bank National 5/21/2012 3.88% 3.94% 3.13% 3.23% 2.75% 3.54% KeyBank National 5/21/2012 3.88% 3.94% 3.06% 3.17% 2.67% 3.19% Washington Federal 5/21/2012 4.00% 4.10% NA NA NA NA HomeStreet Bank 5/21/2012 3.75% 3.89% 3.00% 3.24% 2.63% 2.50% First Savings Bank Northwest 5/21/2012 4.00% 4.08% 3.25% 3.39% NA NA Listed rates from banks, thrifts, and credit unions were listed on their websites on the date indicated for conforming loans with 0 points. Data is believed accurate at time of collection, can change without notice, and will vary based on an individual’s credit history. Contact a specific institution for current rates.

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Seattle/Tacoma Mortgage Rates Survey – Week of May 21, 2012

San Francisco Mortgage Rates Survey – Week of May 21, 2012

admin — Fri, 25 May 2012 14:00:38 +0000

According to a recent Primerates.com survey of San Francisco mortgage rates offered by the largest area banks & credit unions, three San Francisco institutions offered rates below 4.00% on 30-year fixed-rate conforming loans in the St. Louis area for well-qualified borrowers. The Bank of the West ( www.bankofthewest.com ), U.S. Bank ( www.usbank.com ) and Mechanics Bank ( www.mechanicsbank.com ) offered rates at 3.88%. While most lenders will push one of the three products on the list below, there are other options for the borrower. The 30-year fixed rate loan is the most popular since it offers the lowest monthly payment. The trade-off is paying a higher interest rate. For those who have a better cash flow, the 15-year product may be more suitable. The 15-year fixed rate loan will allow the borrower to pay more toward principal with each payment, and since it has a lower interest rate the overall amount of money that is paid in interest will be much lower. While many people steer clear of the 5/1 ARM it is beneficial to some borrowers. For instance, a person with a smaller loan (usually due to refinancing) may have the cash flow to pay off their ARM in 5 years or less. This person could save an extra 1% in interest payments over the 15-year product and never worry about the rate adjusting later in the life of the loan. Top San Francisco Area Banks and Credit Unions As of 30 Yr-Rate 30 Yr-APR 15 Yr-Rate 15 Yr-APR 5/1 ARM-IR 5/1 ARM-APR Bank of the West 5/21/2012 3.88% 3.94% 3.13% 3.23% 2.63% 3.18% U.S. Bank 5/21/2012 3.88% 3.94% 3.13% 3.23% 2.75% 3.54% Mechanics Bank 5/21/2012 3.88% 3.95% 3.06% 3.20% 2.67% 3.20% Listed rates from banks, thrifts, and credit unions were listed on their websites on the date indicated for conforming loans with 0 points. Data is believed accurate at time of collection, can change without notice, and will vary based on an individual’s credit history. Contact a specific institution for current rates.

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San Francisco Mortgage Rates Survey – Week of May 21, 2012