Blog Entries tagged 'Article'

New Credit Card Rules - What Do They Mean?

info@krebsfinancial.com — Tue, 09 Mar 2010 05:00:00 +0100

Staring Feb. 22, 2010, credit card companies will be required to give you more information, more proactively. This means you'll have more choice about how you manage your finances. The rules are designed to help credit card users keep their credit scores high and avoid snowballing debts. Here are those requirements, and how they affect you.

Requirement 1: Starting on Feb 22, your credit card company will have to tell you 45 days in advance before they increase [...]

Simpler Mortgage Documents Are Stimulating Home Buyers

info@krebsfinancial.com — Wed, 24 Feb 2010 05:00:00 +0100

"Bottom-Line it For Me"

The new requirements include a crystal-clear statement showing the buyer's costs for a mortgage.

These disclosures became a requirement thanks to the Real Estate Settlement Procedures Act, which came into effect on January 1. With a recently-reported 20% increase in foreclosures over last year, and no immediate end in sight for the real estate market as a whole, these requirements - and their benefits for home buyers - are cred [...]

People Who Want Greener Homes Still Settle for Simpler Solutions

info@krebsfinancial.com — Thu, 18 Feb 2010 05:00:00 +0100

A new home power plant, capable of generating 18% of a home's average electrical needs, was unveiled at the International Builder's Show in Las Vegas this January.

Alongside this display was a line of solar panels and other green technologies, including both electrical and water conservation tech.

The popularity of green technology has been on the rise for a long time, but seems to be building a crescendo. "Don't Just Build Green - Operate Green!" was one popular session tha [...]

How to Get Out of Debt

info@krebsfinancial.com — Fri, 12 Feb 2010 05:00:00 +0100

Is your debt balance too high? This article helps you decide, and teaches you how to get out of debt.

First Things First

Tally up your total debt by adding all your credit card, bank loan, and other credit statements.Work out what percent of your income is spent on debts. Do this twice: Once for all your debts EXCEPT for your mortgage, and a second time for all debts INCLUDING your mortgage.Get your spouse or household partner on-board with the goal of getting o [...]

Don't Let Holiday Spending Get You Down

info@krebsfinancial.com — Fri, 05 Feb 2010 05:00:00 +0100

The best way to budget for the holidays is to treat them like any other financial situation - plan ahead, prepare a budget, and save money ahead of time.

First Things First

Know your budget, so you can decide the right amount to spend during the holidays.Create a budget for gifting, listing who you'll gift to and how much you'll spend on each.
Don't Let Holiday Spending Get You Down

The holidays are a joyous time, with the comfort of home, the warmth of your [...]

Should You Move, or Renovate?

info@krebsfinancial.com — Tue, 02 Feb 2010 05:00:00 +0100

Is your home starting to feel a bit cramped? If you're thinking of selling your house and buying a bigger home, you may want to compare the benefits of a home equity loan for renovations, vs. the benefits of moving.

Of course, the first question is: can your current home be modified to fit your new needs? Decide if the plot of land is big enough for the additions you'd need. Will the foundation support an added floor above your home? Imagine the changes you'd need and p [...]

What Are Mortgage Points and How Do They Affect You?

info@krebsfinancial.com — Thu, 28 Jan 2010 05:00:00 +0100

In the United States, it's common practice to buy mortgage points as part of a home buying process. But what are they, and how can you use mortgage points to help you own a home?

There are two kinds of mortgage points: discount points, and origination points. Either way, each point is worth 1% of the total mortgaged amount. So, for a $500,000 home, a single mortgage point is worth $5,000. Origination points go toward compensating loan officers, whereas discount points act [...]

How To Establish Credit For The First Time

info@krebsfinancial.com — Tue, 26 Jan 2010 05:00:00 +0100

Lots of people are unclear about how credit works. This article will help you understand how to establish credit for the first time.

How Do You Get Started Establishing Credit?

Before you can enjoy the benefits of good credit scores, you'll need to establish your credit history. People don't start out with a good credit score automatically. If you've never had credit before, any lender or creditor who researches you will get the same answer from reporting agencies:� [...]

What Is a Short Sale and How Do You Do It?

info@krebsfinancial.com — Tue, 26 Jan 2010 05:00:00 +0100

A short sale is a good choice for some homeowners who, for whatever reason, will no longer be able to make payments on their mortgage. Rather than suffer a delinquent mortgage, consider your options and take action before you start missing payments. Your long term financial freedom will be better-off if you act decisively.

Alternatives to the Short Sale

If you're facing mortgage delinquency and you want to stay in your home, then a short sale is not for you. [...]

7 Things to Know about Loan Modifications

info@krebsfinancial.com — Fri, 22 Jan 2010 05:00:00 +0100

The U.S. President has declared that performing loan modification on distressed mortgages is a key part of keeping families in their homes, and ending the rapid decline of property values. Critics have said that, in 2008, some 53% of all restructured loans were once again in default by the end of that year, but others say that those loan modifications were poorly executed.

The Obama administration aims to help millions of families avoid foreclosure and stay in their homes through [...]

5 Tips for House Hunting During Recessions

info@krebsfinancial.com — Thu, 21 Jan 2010 05:00:00 +0100

If you're in a position to buy a home when the real estate market slumps and there are lots of homes for sale, you're in a good position indeed. But in order to take the advantage, you need to know how to operate as a buyer in that market - especially, when to leap on a sale, and when not to.

This article will teach you five critical tips that will help you house hunt during a real estate market slump.

Do Your Homework

Make sure you know whether a price is really a good pr [...]

Why renovation loans are becoming more popular

info@krebsfinancial.com — Wed, 20 Jan 2010 05:00:00 +0100

The present financial crisis is having adverse effects on finances and lifestyles all over the world. By far, the most serious effect has been the difficulties faced by home owners and tenants. People are being forced to move because of their finances, and yet the choices available to these people are dwindling in many local markets. This is why renovation loans are becoming more and more relevant for the present day home owner. Here, we will discuss a few important factors which have cont [...]

Why choose a licensed mortgage broker over a mortgage banker

info@krebsfinancial.com — Fri, 01 Jan 2010 05:00:00 +0100

There is a popular perception, in the minds of many, that mortgage companies are basically mortgage banks which function by lending their own money in a mortgage deal. However, there are significant differences between the two worth knowing about. Any company you come across today can be clearly classified as either a mortgage banker or a mortgage broker. Let us clarify the reasons for preferring the services of a mortgage broker, instead of a mortgage banker, while securing a loan in the p [...]

Why are Pre-Qualification Letters Important?

info@krebsfinancial.com — Fri, 01 Jan 2010 05:00:00 +0100

In the early part of 2008, the phrase "a perfect storm" was thrown around anytime anyone talked about the present-day mortgage market. The sudden severity of the in the mortgage market has led to psychological effects that are bigger than the financial effects.

In particular, lenders and other financial institutions have built up a strong skepticism and apprehension when it comes to choosing who they will, or will not, loan to. As a result, pre-qualification letters for loan [...]

Refinancing at the Time of Variable Rate Mortgage Adjustment

info@krebsfinancial.com — Fri, 01 Jan 2010 05:00:00 +0100

Variable rate mortgages, also known as adjustable rate mortgages (ARMs) have a single defining idea behind their design and execution: they reflect the actual value of money at the time when the rate is adjusted. These rates are determined by an overall financial index that continually fluctuates over time. It's this fluctuating monetary index that determines whether the interest rate you got, when you first received your variable rate mortgage, will rise or fall once the pre-determined [...]

Tighter Underwriting Guidelines Might Be a Good Thing

info@krebsfinancial.com — Fri, 01 Jan 2010 05:00:00 +0100

Over the past several years, we all know that the mortgage industry, and the entire credit industry worldwide, was going through a lot of turmoil. However, there was one lesser-known area of the financial market which continued to be dynamic and constantly change. This was the domain of underwriting. In 2004, the Bush administration decided to relax the underwriting guidelines for financial institutions. This step was taken with a single aim in mind: to help a larger number of Ame [...]

Five Simple Steps for Applying for a Mortgage

info@krebsfinancial.com — Tue, 22 Dec 2009 05:00:00 +0100

So, you've decided to go for a mortgage. How do you go about the process of applying, and getting the best mortgage possible? Here are our five top tips that will help you apply for a mortgage, be approved quickly, and wind up with the best terms and rate for your budget.

1. Estimate how much you can pay on a mortgage loan per month, and stick to it.

One of the first things that your lending institution will do is try and decide how much you're able to pay each mon [...]

Predictions for Mortgage Interest Rates for 2010

info@krebsfinancial.com — Sat, 19 Dec 2009 05:00:00 +0100

It goes without saying that the economy, including all activities in the financial sector, are rather volatile at the moment. This makes accurate predictions difficult to make. We at Krebs Financial have access to the information and analytical resources which give us some confidence in the following prediction about what mortgage interest rates will look like over the following year.

Early in 2009, a standard fixed-rate 30-year mortgage carried an interest rate of about 4.69%. This [...]

Mortgage Rates Hit Bottom

info@krebsfinancial.com — Sun, 06 Dec 2009 05:00:00 +0100

The present-day economy, not only in the United States but through all the developed countries of the world, has fallen from soaring heights, to rock bottom. A serious credit crunch is setting in. As a result, those with good credit are finding that banks and lenders are chopping the fat off their mortgage rates in order to stimulate the consumer desire to take out a loan.

This process of lowering mortgage interest rates has already come into full swing in the U.S as a result [...]

How to Maintain Good Credit Scores

info@krebsfinancial.com — Tue, 01 Dec 2009 05:00:00 +0100

Most people with average incomes are struggling to meet their financial expenses. Such people tend to swipe their credit cards a little bit more often than they should. Eventually, this adds to their total debt. Interest payments can rise far higher than is healthy for the average budget. It's not easy to break this habit, but it's absolutely critical to maintain a good credit score, especially in an economy like this.

If you already have a good credit score, then consider you [...]