Refinancing Today

Should Mortgage Refinancing be used to Consolidate Credit Card Debt

2009-11-29T11:33:00.005-05:00

One of the most profitable segments of the financial services industry is Credit Cards. There is a massive debate taking place as to whether governments should institute new laws that cap interest rates and fees.

According to the financial industry this type of regulation will hurt consumers and make it more difficult for people and small businesses to acquire credit. They argue that the people who most acutely need access to credit will be the most at risk of being declined access to credit.

Even though legislators from the US, Canada, and the UK are all proposing some type of regulation of Credit Card Issuers, there is little chance of any serious relief from the unreasonably high interest rates or punitive fees that have become the norm.

The sad fact of the credit card business is that the people who can least afford high interest rates are the people who pay the highest rates. And make no mistake about it, although most of the disclosures made in the agreements you sign in the terms and conditions for use your credit cards are not hidden, average consumers have very little chance to understand exactly what they are paying and the consequences of not complying to those terms.

There are many consumers that are in serious financial trouble today and according to the experts, one of the critical reasons for the financial meltdown was the refinancing of mortgages to pay off credit card debt.

Millions of Credit Card holders refinanced their Credit Card debt into their mortgages. This may come as no surprise to some financial experts but many people have been stung by consolidating the balances from credit cards into refinanced mortgages. Should Mortgage Refinancing be used to Consolidate Credit Card Debt? No way!

By opting into mortgage refinancing and then using the same credit cards, as if no extraordinary measures were taken to pay down the balances in the first place, consumers have basically been the masters of their own financial demise and have incorrectly used mortgage refinancing to consolidate debt. This is what the industry would have you believe. I say bring on regulation.

One of the most important things you must realize about credit cards is that there is no regulation on the way interest rates and fees are imposed and applied. Much to the detriment of the credit starved consumers who fall prey to, what I would call, loan shark interest rates.

Much of the problem here is that a typical person will have nothing to worry about until something unusual happens in their financial situation such as the loss of a job or in the US, a catastrophic sickness.

As we all know there have been many people lose jobs over the past 15 months as the crash on Wall Street sent ripples throughout the world economy. Everyone in some shape or form is feeling the crunch financially. Banks can get money cheap but do they pass the low rates on - nope, not a chance!

So what should be done? Should governments stop Credit Card Companies from charging 35% or 25% interest rates on credit card balances? Is it usury or is it the free market at work? I would say the former.

Just ask yourself if you would knowingly sign up for a credit card that charged a 35% interest rate on all outstanding balances, or, would you prefer that the credit card issuer declined your application even if you were aware of the interest rate to begin with?

The financial services industry has shown that they are in business to make money and buyer beware. Can they be trusted to do the right thing? For some reason people hold their financial institutions in high regard and they don't realize that banks and credit card companies are businesses just like the electronics dealer, or any other business in your local mall.

I would argue that even though these financial institutions are selling products and services just like any other business, they do have the ability to seriously impact the well being of their clientele disproportionately and therefore should be held to higher standards of conduct.

Some groups believe charging interest rates over 18% is immoral and considering the interest rates charged to the banks are the lowest they've ever been, they may have a point.

As in all financial transactions, if you don't need money and can prove it, you will be able to get credit. If you need credit and don't have a stellar credit record, it's becoming increasingly obvious that you should be very careful about which type of credit you try to get.

Your financial well being is in the balance and don't expect your government to do anything to contain the rampant greed shown by the financial institutions either.

Oregon Unemployment Claim Online | Increase In Unemployment Rate

2009-10-05T06:59:00.003-04:00

The former Federal Reserve Chairman Alan Greenspan said Sunday that he expects the US economy to do better than he previously predicted but in light of an awful September unemployment report, he expects that unemployment in the coming months will top 10 percent.

On the ABC program "This Week" he also agreed that special considerations concerning the unemployment situation - "Temporary actions must be taken especially to assuage the angst of a major part of the population."

He also said there is no need for another stimulus package.

With unemployment reaching such high levels it is especially difficult to obtain any type of refinancing unless a person has a strong equity position in their home or any other property.

If you are experiencing financial difficulty because of a layoff or the outright loss of a job, refinancing your home might be the only option you have.

The latest news has indicated the economy is starting to pick up and these latest unemployment figures are generally accepted as a lagging indicator.

On the same show Sen. Charles Schumer and Sen. John Cornyn suggested extending unemployment benefits, health care benefits for the unemployed, and housing credits so people buy new homes.

Unemployment Benefits are generally available for a total of 46 weeks. States where the jobless rate is in excess of 6 percent, benefits are available for 59 weeks.

At todays levels and duration of unemployment, it's feared and has been seen that many unemployed people are remaining jobless after the benefits run out.

It can be done, but it's hard to Rebuild Your Credit if you are in financial difficulty, but to do it requires the employment figures to rise and the stimulus package to create more jobs.

However, some States are trying to push through extensions and the State of Oregon has a 13-week extension of unemployment benefits which starts as of Sunday, October 4th - yesterday.

Oregon Unemployment Claim Online

If you live in Oregon here is a FAQ - Unemployment Benefit Extensions provided by the Department of Employment. To find out more, you can go to the Oregon Department of Employment and check it out.

With the Rates of Unemployment Increasing, it is essential for anyone who is unemployed to be very careful, do everything possible to find a viable job, and get their financial house in order.

How do You Start To Rebuild Your Credit

2009-08-23T19:13:00.004-04:00

There are several factors to consider when you decide to Rebuild Your Credit. Making sure credit is readily available to you can be a life saver in good times as well as bad times. It's imperative for you to know what is going on with your credit worthiness and how the credit reporting agencies view and rate you.

If you understand the dynamics of how credit is judged, you'll have the information to help you stay on top of it all.

Credit Reporting Agencies

Most people have no idea about these companies. What do credit reporting agencies, credit bureaus, credit monitoring services do? There are three Bureaus:

Equifax
TransUnion
Experian

We've all heard the commercials on television about how to get your free credit report. Oh yes and unless you live under a rock you should be aware that the information is free. Well yes, but not in every situation.

Each of the above Agencies offer access to your credit report from each bureau for different prices or free depending on the access you request.

Under the FACT Act amendments to the Fair Credit Reporting Act, you are entitled to one free credit report from each of the three main credit reporting companies in a 12-month period. If your identity can be verified online you can access it online, otherwise, you'll have to do it by mail.

What's in Your Credit Report

Each credit reporting agency may format and report information differently, credit reports contain mostly the same kind of information.

Who You Are

Name
Address
Social Security number
Date of Birth
Employment Information

Accounts

Creditor
Type of Account
Term of Account
Credit Limit
Loan Amount
Account Balance
Payment History

Credit Inquiries on your Report

Voluntary Inquires

Involuntary Inquires

Public Records and Collections

Bankruptcies
Foreclosures
Law Suits
Wage Attachments
Liens
Court Judgments

As you can see, the very first step you must take to Rebuild Your Credit is to get all three reports. You will need to go through them to make sure the information is accurate.

This service is free once every 12 months and it is a good idea to get them annually. If there are any discrepancies in the reporting of your financial picture, this gives you a chance to get it straightened out and resolved.

Mortgage Rates Down | The Right Time To Refinance

2009-08-22T12:12:00.004-04:00

The recession is going to end soon and the economy is showing signs of leveling off according to the sentiments voiced by central bankers from all over the word on Friday so it may be a good time for refinancing mortgage loans.

Mortgage rates for 30-year fixed loans also fell this week to the lowest level since May according to a report from Freddie Mac. Many people are keeping an eye on mortgage refinance rates especially if they have high credit card debt or outstanding loans at very high interest rates.

Fluctuating interest rates on mortgages show that there is a measure of confidence returning to the economy in general. This does not mean that we have swung back into a boom and you should run out and refinance loans without taking a close look at your options.

Caution is never misplaced in this type of economic environment but when it comes to refinancing your mortgage, it may be a wise decision if the end result is a lower monthly payment and it substantially reduces your exposure.

There is still a high level of debt hanging around and any refinancing today which enables you to escape financial hardship by consolidating outstanding loans, will pay off for you tomorrow.

One of the main things to understand when consolidating your finances is not just your monthly payment. You must make sure the total amount of interest you will pay over the term of your refinanced mortgage represents a saving.

What this means is, if you have credit card debt which is at a high rate it may be a no-brainer to consolidate. If your car loan is is at a low rate it might not be a smart idea to pay it off from money obtained from a refinance of your home mortgage.

Refinancing your mortgage can usually work to your advantage if you are in a good equity position and you take care to pay off any debt which in the long term still saves you money on the interest. Don't forget to do the math and consult your bank.

Lowest Mortgage Rates on Record

2009-03-26T13:13:00.005-04:00

The rate for a 30 year fixed mortgage hit an all time low of 4.85% today and represents the lowest mortgage rates on record for a fixed 30 year term. I'm sure everyone in the housing industry hope that that this will inspire people to seek mortgage loans so the housing market can start to rebound.

This is the first time the mortgage rate has hit such a low and even though it shows light at the end of the tunnel, some experts are saying it will not enable people with sketchy credit to get into the market. Banks are cautious and, no doubt, are trying to lower the default rate and their exposure.

New Home purchases actually increased in February over January, spurred by lower mortgage rates. Hopefully the trend will increase. Anything that will help consumer confidence is good at this point in time for private banking. However sales of new homes actually decreased over the same time for 2008 and the sales price decreased.

You can get more information here and here.

Even though this is good news for anyone buying, or considering buying a home, caution is still the best way to proceed. Mortgage rates may be low and the price of homes may have dropped, but you'll still have to qualify for a mortgage, and that's going to be the real test.

Just because we are seeing the Lowest Mortgage Rates on Record for a 30 year fixed rate mortgage, rest assured the financial institutions are going to be very cautious about who they approve.

Refinancing today may also be a good idea if you can qualify.

Making Home Affordable Program

2009-03-19T10:25:00.004-04:00

The Making Home Affordable Program was Launched today by the US Obama Administration and is, as far as I'm concerned a great idea. And, true to form, they've done a great job with the website.

With all of the turmoil, this program offers help to those affected and may enable them to seek relief.

According to the website, "up to 9 million American families may be eligible to refinance or modify their loans to a payment that is affordable now and into the future." The name of the site is makinghomeaffordable.gov and if you want to check it out, go for it.

Considering all the money being spent to reboot the ailing economy, Refinancing Today may be the best option for millions of people. In light of the Mortgage Rates trending lower, getting a New Mortgage might be a worthwhile option for people wanting to buy their first home.

Again, you may want to check out the different Mortgage Calculators that are excellent to see where you stand financially.

At the end of the day, any up-tick in spending can only help kick-start the economy. So go and check out The Making Home Affordable Program and see if you qualify.

Mortgage Rates go to a Record Low

2009-03-18T18:43:00.006-04:00

The US Federal Reserve has anounced that it has more than doubled its planned purchase of mortgage-related securities which in turn has driven Mortgage Rates go to a Record Low.

This can only be good news for people thinking about getting into a mortgage or even refinancing a mortgage. As current mortgage rates decline there is speculation the rates will stay low.

For first time buyers, this could be a great time to get a home as a 30 year mortgage is sitting at 5%. If you want to figure out if you qualify, a mortgage calculator will help.

The mortgage rates forecast is for rates to stay low for the remainder of 2009, however there is also speculation that when rates tend to fall fast, they also rise fast. Who knows!

So do some homework, what do you have to lose by checking it out. If you can afford to get a new home now, mortgage rates today are as they'll be or have been for quite some time.

It could be a great time to finance a home as Mortgage Rates go to a Record Low . Low interest rates will help keep your costs down and hopefully insure that your equity will increase as the value of your home does. But be careful! Do your homework to make sure you can afford it.

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Mortgage Calculator | Mortgage Refinance Calculator

2009-03-11T10:13:00.005-04:00

Everyone is being frugal these days and a Mortgage Calculator or Mortgage Refinance Calculator can help you if you are trying to Refinance Today.

There are many things to consider when trying to figure out wether you should get a mortgage or refinance an existing mortgage. Experts will tell you to do some research before jumping into something. I say, remember to review exactly what your financial outlook is and do some calculations to see what options are available to you.

When being frugal, you want to make sure that you do not over-extend yourself in any way. A Mortgage Calculator will tell you what kind of payments you will make for the size of loan. Call around to lots of financial institutions that offer mortgages, and find out what Mortgage Interest Rate is available. You'll need to use any of the Mortgage Calculators or Mortgage Refinance Calculators that you will want to plug information into.

Where can you find calculators for Mortgages and Refinancing? I have couple here for you to try out?

Here are a few links to the ones I use. Just click on the link to go there.

Mortgage Calculator

Mortgage Refinance Calculator

These are just a couple of types of calculators available online. Just use them as a tool to see what kind of financing and mortgage rates are going to cost. You may find out that the cost to refinance might not be in your best interest.

A Mortgage Calculator or Mortgage Refinance Calculator is a great place to start figuring out if you might qualify or afford many of the financial products available.

Being Frugal means first and foremost doing your homework.

Get An Affidavit of Financial Hardship

2009-03-04T15:09:00.007-05:00

There are very few people today who have not experienced some financial hardship and if your mortgage might be at risk you need to act before it's too late and you lose your property or home.

To get your mortgage refinanced today you'll need to Get An Affidavit of Financial Hardship which, if it had been done months ago, might have slowed the recession we're all facing.

The US President announced his "Homeowner Affordability and Stability Plan" to help people that have been having trouble Refinancing a Mortgage or keeping up with payments. The media is making a big deal about having to prove hardship as part of the negotiations with lenders to qualify.

Now really... If you are in financial stress and relief is what you are seeking, I say fill out the form and comply with the other requests the lender makes. The Rates of Unemployment Increasing is only going to compound this issue.

The whole reason for the financial mess in the first place is the lack of scrutiny on these mortgages to begin with, so please give me a break. Get with the program.

Florida has a document that is probably like what a person would need to fill out which is actually called Affidavit of Financial Hardship. Go ahead and get it!

If you want to reduce your level of stress, I suggest that you check out the White House Blog to Get The Details of President Obamas' Plan.

I say go ahead and Get An Affidavit of Financial Hardship and make a deal with your lender to get Refinancing Today.

Oh! After you get the whole mess straightened out, it will be time to learn how to Rebuild Your Credit. It's always a good time to start that process.

How to Fix Bad Credit

2009-02-17T14:40:00.010-05:00

If you want to know How to Fix Bad Credit, Listen Up!

Take it from someone who has literally brought themselves back from bankruptcy. If you don't want to go through bankruptcy, you can learn more by reading these informative Debt Consolidation Articles.

Many years ago I had a couple of businesses that fell on hard times and went into bankruptcy.

I went through the painful process of trying to dig myself out of debt but ultimately had to give in. The process is a deflating one, to say the least, but I did get through it.

However, I learned a very important lesson about how to Establish Credit once I came out the other end. And Establishing Credit, or even Fixing your Credit, can be a daunting task.

So here is my Number One Tip on How to Fix Bad Credit.

- You have to Apply For A Secured Loan and Pay it Off under the Exact Terms of the Loan.

You may say that your Credit is So Bad that nobody will give you a Loan.

It's not true. There are Credit Cards available that you can get even if you have Bad Credit.

Some Credit Card Companies might charge you an upfront fee for the card and usually the Credit Limit will be Very Low, but you shouldn't care.

This will help Fix Your Credit as long as you meet the terms.

In other words, you pay on time every time, never go over your limit, and use the card as you can afford.

Lets say you get one of these cards with a limit of say, $500.00.

You should use the card for something you know that you will have the cash for and when the credit card bill comes, pay it right away. Not some of it, the whole amount.

You must use the card otherwise it will have no effect. As you use it and live-up to the terms, you will be establishing a good credit record for that vendor which get reported to the credit information agencies.

This normally takes about a year to have a Positive Effect on Your Credit

but in the end, it will be worth it. If you want to refinance with bad credit, at least, try to fix your credit as well, it certainly won't hurt.

If you know How to Fix Bad Credit you will hopefully put yourself back on the road to Financial Stability.

Refinancing Your Mortgage

2009-02-14T13:57:00.003-05:00

Refinancing Your Mortgage is a great way to get Secured Loans when you don't really want to pay a high interest rate or pay-off the money you want right away. The best way to go about finding out if this is an option for you, is to talk to the institution where you have your mortgage now.
In some situations you may want to use a Mortgage Broker but if you have been dealing with a Bank, check with them first. They will already know your Financial Situation and will want to keep your business. After all, it's way harder to get a new client that it is to keep an existing client and this fact alone will give you a bit of leverage.

Mortgage Rates are now as low as they've been in decades and it is a great time to take Advantage of Refinancing for that reason alone. Be careful when choosing what to spend your money on so that you don't waste your built-up equity.

While the economic conditions are sketchy you may be able to pick up Real Estate that is distressed for a steal of a deal. If you Refinance your Existing Mortgage and hang onto the cash, you just might be able to take advantage or some of these type opportunities.

Just remember not to get into a deal that maybe more risky than you can afford. Play it safe.

In down times there are always opportunities for Financial Gain and Refinancing Your Mortgage may be a way for you to expand your Financial Future.

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2009-02-12T19:41:00.008-05:00

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Refinancing Options

2009-02-10T13:59:00.011-05:00

Refinancing today is not easy but it can be done if you know your Refinancing Options. The first thing you need to do is assess your present financial situation. If you don't know where to begin, go see your bank manager or meet with a credit councillor, they will help you determine the way forward.

You can also find many articles about personal finance online if you look around.

Maybe you are just looking for a guide to real estate investing or you've got a house you want to rent. You might want to know what is the current mortgage rate trend before jumping into the market.

Before you begin looking around, it is essential to have all the relevant information about your financial situation.

Everyones personal finance info is different and it can be frustrating to know where to begin. If you are interested in refinancing, some of your questions might concern the following topics:

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Also, if you've lost a job or you know you're going to lose your job, you really need to talk to a financial expert and see what your options are.

If you have saved money from your time working, it may be a good idea to find a company or individual specializing in wealth management.

It's up to you to take control of your financial future.

Just remember - getting a secured loan, refinancing your home, or finding available credit to get you out of a financial mess will not solve all your problems immediately.

If you want to rebuild your credit or manage your finances effectively, start right away by seeking the advice of a professional that you can trust.