Product Review:
MORTGAGE CALCULATORS

Need to know how much you will pay each month on your mortgage loan? How about the amount of mortgage you can afford based on a budgeted amount? Use these and other simple calculators to make your home mortgage decision.

tip: view our list of mortgage calculators

How good is your homeowners' insurance policy? Has it been updated since you first took it out? Does it reflect the big surge in home prices over the past ten years?

Insurance can be one of those things you get and quickly forget about. Sure, annual premiums must still be paid, but if the rates haven't gone up all that much over the years, you may not notice just how much your insurance coverage you really have. Then again, if you live in a Gulf state, then you probably have seen your insurance costs double, triple, and even quadruple in a few short years.

Paying more for insurance doesn't necessarily mean that the insurance you have now covers all of your needs as it did back then. Your insurance company may have been tracking current housing conditions and adjusting your coverage accordingly, but you can't guarantee that they have or that their calculations reflect your home's value.

In addition, construction costs have skyrocketed and subtle changes in your policy may have changed some key provisions, specifically limiting the cap on the home's replacement value.

So, what is the solution? Answer: find your homeowners policy and check to see if it is adequate for your current needs. If it isn't, contact the insurance company to adjust your policy accordingly. Furthermore, if you aren't satisfied with the proposed modifications, start shopping around for a new policy.

2009/06/02 property taxes SE

Consumers who are in a financial bind may end up turning to a credit counselor for guidance. This can be an effective way to help beleaguered Americans get their finances in order, perhaps avoiding bankruptcy in the process.

Credit Counselor Guidelines

The Federal Trade Commission (FTC) in cooperation with the Department of Justice’s U.S. Trustee Program has issued guidelines to help people find a credit counselor. Those guidelines include asking professionals certain questions in advance of retaining their services including the following (with my tips included after each question):

What services do you offer? A credit counselor may be able to guide you, but you to need to ask if they provide all of the services you want. If not, you may need the help of a second professional – that gets expensive!

Will you help me develop a plan for avoiding problems in the future? Overcoming a current problem is important, but you need to know what steps you can take now to keep yourself from repeating the problem.

What are your fees? Will you be charged per hour, per visit or will one set fee be assessed?

What if I can’t afford to pay your fees? Find out if you can be charged on a sliding scale, based according to your ability to pay.

What qualifications do your counselors have? Are they accredited or certified by an outside organization? What training do they receive? These questions are important – you need to learn if your state certifies people who set up shop as credit counselors. Learn what their background is; you may not be able to get references, but you should be able to uncover their reputation.

What do you do to keep information about me (including my address, phone number, and financial information) confidential and secure? No information about yourself should be shared with third parties without your permission. Your credit counselor may contact your creditors on your behalf (with your knowledge), but they shouldn't be sharing information about you without your authorization.

How are your employees paid? Are they paid more if I sign up for certain services, if I pay a fee, or if I make a contribution to your organization? Some credit counselors work for non-profit organizations while others work for for profit enterprises. Learn if there are some sort of incentives in place for counselors to steer you to other products.

Full Disclosure: A Must!

Credit counselors help thousands of Americans every week get back on financial track. Only use counselors whose track records are proven and who offer full disclosure on their services.

2009/10/13 consumer tips SE

Locating a professional credit repair advisor may be what you need to help fix your deteriorating credit rating. You may have some idea about what steps you should pursue in order to repair your credit, but a qualified professional could be your best option to help you sail through the process.

4 Steps To Finding A Credit Repair Advisor

Before you engage the services of a professional, please keep in mind a few things first including the following:

1. Is the credit repair consultant licensed? A good number of states do not require licensing for this type of professional, but if they are a CPA or authorized financial consultant, then they must be state approved. Be careful! Some so-called experts have scant formal training and many not be able to offer the advice you need.

2. How much will you have to pay for services rendered? Even if the professional is employed by a nonprofit organization, that does not mean that you will get helped for free or at a discounted price. Find out about their fee structure first; never sign a contract without confirming what services are offered. Also, talk to several advisors and compare plans – shop around!

3. Take the long view. Certain credit repair consultants will work with your lenders to forgive a portion if not all of your debt. That sounds great, doesn't it? Well, what will that do for you in the long run? Will your credit be destroyed? Please understand one important thing: loan forgiveness does not necessarily mean you'll be starting over again fresh. You could be in worse shape if you select a credit repair advisor who shows no interest in preserving your creditworthiness.

4. What is their reputation? Before hiring a credit repair advisor, you should discover what this person’s reputation is among his peers. The Better Business Bureau or local Chamber of Commerce is a good start as are governing authorities who oversee this kind of work. Get references, call these people and ask a lot of questions. You don't want to have worse problems later on because you weren't thorough with your due diligence.

Getting Back on the Road

Making use of the services of a credit repair counseling business could prove advantageous to you. With expert assistance you may be able to avoid ongoing problems and start back on the road to recovery. You may be able to handle some of the credit repair work yourself. Find out what your options are and choose the right plan for you.

2009/09/15 consumer tips SE

If you have significant debt and are finding it difficult to reduce your financial burden, then negotiating with your creditors can help you manage your finances better. An important aspect in any plan involving financial management is working to lower your interest rates or even possibly having some of your debt forgiven.

Assemble your credit statements.

Financial documents such as your credit card and loan statements can be useful in helping you determine what you owe and how much interest you are being charged for each debt. Review your statements and come up with a plan to have your high interest rate credit cards reduced. (see The Wall Street Journal: Credit Woes Hit Home)

For example, if you are paying 21.9 percent for one credit card, you can save money monthly simply by having that rate reduced to a more manageable 12 percent. That lower interest rate means that less money is being paid out monthly to cover interest charges while a larger portion of your payment can be used toward the loan principle. You may be able to reduce the amount you pay on your debt every month while helping yourself get out of debt faster.

Contact your creditors.

Each of your statements includes contact information outlining how to reach your creditors. Contact your creditors and ask that your interest rate be reduced. According to Brad Dakake, a consumer advocate with Massachusetts Public Interest Research Group, "There's no incentive for them to lower your rate unless you call. The squeaky wheel gets the oil."

Will you get the lower rate? That's hard to say. But, you won't get a lower rate unless you ask. You may be paying a higher rate because you were late making payments or you deemed as a higher credit risk. No matter, credit card companies will sometimes reduce your interest rate just because you asked.

What about loan forgiveness?

Now for the tricky part: can you get your loan balance reduced or forgiven? If so, what will that mean when it comes to your personal credit?

A lender may write off your loan if you have no way of making payments. But that comes with a price: your credit will take a major hit which means that you'll have this mark on your credit for many years to come. While you did not declare personal bankruptcy, some lenders will view this action similarly.

Your credit score will be reduced and you may find it difficult to obtain new financing, rent an apartment, buy a home, even get a job. Yes, even employers can check up on your credit to see if you are a responsible with your debt.

Finally, if you are deeply in debt, what got you there? Poor spending habits? Job loss or reduced income? Mortgage problems? Seeking the assistance of a qualified financial adviser such as a debt consolidation specialist can help you resolve these issues and put you back on the path to financial freedom. (see SmartMoney.com: 4 Ways to Help Shrink Your Debt)

Just make sure that the person you find has the skill sets you need (degree, licensing, references) and presents a plan that will repair your credit not destroy it.

2010/01/19 consumer financing SE

If you're looking for good news these days in the housing market, then you may have heard that home sales are up and prices have stabilized in some markets. But, you may  have also heard that come 2011, there could be a rash of new foreclosures as a fresh batch of variable rate loans come up for an adjustment.

Several markets remain depressed including Detroit, Las Vegas and much of Florida. However, sections of Southern California, Texas and various cities dotting the south and midwest are holding their own. Likely, the performance differences between these markets will continue as unemployment and other issues weigh in.

Additional Help For Home Buyers?

When Congress returns from their break next week, they'll have a number of issues to take up besides national health care. One issue that should be on the mind of potential homeowners, particularly first time buyers, is the $8000 federal tax credit which must be taken by December 1, 2009. There has been talk about extending and expanding the credit to allow all home buyers to participate while also increasing the rebate to as high as $15,000 per purchase. We'll let you know more about this information should a bill be presented over the coming weeks.

Meanwhile, the rate for a fixed-rate thirty-year mortgage continues to slide, dropping to 5.17% nationally according to the Zillow Mortgage Rate Monitor. Even better, the rate on a fifteen-year fixed-rate mortgage is 4.57% while 5/1 adjustable rate mortgages can be had for just 4.17%. Keep in mind that these rates apply only to the most creditworthy customers. Shop around for a deal that is most favorable for you.

HARP or HAMP

For homeowners struggling to keep up with payments, the federal government's “Making Home Affordable” program could help you modify your current loan or seek out an all new loan. The government's HARP – Home Affordable Refinancing Program – and HAMP – Home Affordable Modification Program has helped thousands of homeowners keep their homes thus far. Visit the related website to learn more including confirming your own eligibility to participate.

Finally, if you've been getting the run around when it comes to refinancing your home, then going the traditional rate of refinancing may help you out especially if your personal economic situation has improved over the past several months. Private lenders are still looking for customers, so first verify that your credit is good by obtaining copies of your credit reports to see where you stand. Who knows, the help you're wanting could be within your reach!

2009/09/02 consumer financing SE