Thursday, May 10, 2012
Friday, April 27, 2012
Tuesday, March 6, 2012
New Mortgage Rates will save homeowners $1000 a year
New mortgage rates will save homeowners $1,000 a year
By Theresa Seiger
WASHINGTON (RNN) - President Barack Obama held his first official news conference of the year Tuesday to announce changes in mortgage financing that he said will save homeowners approximately $1,000 a year.
Mortgage rates for houses financed by the Federal Housing Administration will be cut by more than half, Obama said. The White House estimates that between 2 million and 3 million borrowers could benefit from the lowered rate.
The FHA charges an up-front mortgage insurance premium of 1 percent of the borrower's loan balance and an additional 1.15 percent of the balance per year. The reduction would change the up-front premium to .01 percent for loans that were taken out before June 1, 2009 and change the annual fee to .55 percent.
The president said the efforts are part of his goal of "ensuring this recovery touches as many lives as possible."
More changes will come for military families struggling in the economic recession, including hundreds of thousands of dollars of compensation for service members who have been wrongfully foreclosed upon since 2006. Service members will also get refunds if they prove that they were wrongfully denied the chance to reduce their mortgage payments through lower interest rates.
Obama also made another pitch for increasing taxes on high-income Americans, calling on Congress to vote on the Buffett Rule, a tax plan inspired by investor Warren Buffett. In early 2011, Buffet said that the rich should pay a higher tax rate than the middle class.
The plan would raise the minimum tax rate for payers in the highest income bracket, "so we don't have billionaires paying a lower tax rate than their secretaries," Obama said.
The comments came as economic confidence in the country experienced a sixth straight increase, according to research from Gallup. Although the rise has not been dramatic, confidence has reached average monthly high levels seen in the previous four years.
According to Gallup, people making less than $24,000 a year had the most negative view of the economy while those making $90,000 or more had the highest perception.
Obama's news conference came on Super Tuesday, as the GOP presidential hopefuls battle it out across 10 states for more than 400 delegates. Primaries are being held in Massachusetts, Vermont, Idaho, Virginia, Ohio, Georgia, Tennessee, Oklahoma, North Dakota and Alaska.
Mindful of the coming election, Obama told reporters that comments from the candidates on the possibility of war with Iran reminded him that "those folks don't have a lot of responsibility."
"When I see the casualness of how these people talk about war, I'm reminded of the costs of war," he said. "There's nothing casual about it. When I see some of these folks who have a lot of bluster… but when you ask them specifically what they're going to do, they repeat the things that we've been doing for the last three years.
"Those who are suggesting, or proposing, or beating the drums of war should explain clearly to the American people what they think those costs and benefits will be," he said.
He reiterated his goal of achieving a diplomatic solution to the problem with Iran, a country rumored to be working on producing nuclear weapons. He said top intelligence officials from both the U.S. and Iran agreed this can be accomplished without war.
However, he said there is no room for compromise when it came to allowing Iran to achieve nuclear capability.
"Iran is politically isolated," Obama said. "We will not countenance Iran getting a nuclear weapon. My policy is not containment, it is prevention."
Copyright 2012 Raycom News Network. All rights reserved.
Tuesday, February 21, 2012
Wednesday, February 15, 2012
Thursday, February 9, 2012
How to improve your Credit
How To Improve Your Credit
If you have had credit problems, be prepared to discuss them honestly with a mortgage professional. Responsible mortgage professionals know there can be legitimate reasons for credit problems, such as unemployment, illness or other financial difficulties. If you had a problem that's been corrected, and your payments have been on time for a year or more, your credit may be considered satisfactory.
If your credit is not in terrible shape, you can reduce your other expenses, even if it means making hard choices or changing your lifestyle to fit your income. Consider selling a second car, taking equity out of your home, applying for a non-secured signature loan, obtaining a loan from a relative, selling your home and paying off your debts with the proceeds and then renting, cashing out your 401K/retirement benefits or selling family heirlooms, jewelry, etc.
If your credit is already damaged or one of the above isn't an option, go through Consumer Credit Counseling Services (CCCS). Check your yellow pages for the local number. CCCS may be able to help you pay off your debts as if you were in a Chapter 13 bankruptcy, but you don't actually file for bankruptcy.
If CCCS won't take you, you may want to consider bankruptcy. Claiming Chapter 13 bankruptcy takes longer than a Chapter 7, but your credit will end up in a little better standing. Chapter 13 bankruptcy gives you up to 5 years to pay off your debts. The disadvantage is that you're in bankruptcy for up to 5 years plus your credit report shows your bankruptcy for 7 more years after you have finished paying off your debts.
If you are so far in debt that you can never repay it, then the best solution may be a Chapter 7 bankruptcy. A Chapter 7 bankruptcy is the least desirable from a credit standpoint, but you are typically out of bankruptcy in 6 months and you don't have to repay any debt. The disadvantage is that this shows on your credit report for 10 years from the date of filing your bankruptcy. Creditors are starting to tighten their credit requirements, and you may have a tough time getting future financing.
If you're debts are under control now, but want to improve your bad credit history, the most important factor is to make your monthly payments on time. Use pre-addressed envelopes enclosed with your statements to mail your payments and call the company if you don't receive your usual statement. Also send your payment as early as possible if you carry a balance. Most companies calculate interest on a daily basis, so the sooner they receive your payment, the less interest you'll pay.
Don't procrastinate. It's the day your payment is received that counts, not the postmark date. Give the post office sufficient time (five business days is a good guideline) to deliver your mail. Late payments may mean late fees, higher interest, and/or a negative mark on your credit report.
Never send cash. Open a checking account if you don't have one, or spring for a money order and keep your receipt. Finally don't forget to tell your creditors your new address when you move.
If you are worried about making payments, make a list of your debts and when the payments are due. Contact your lenders immediately if you think you will have trouble meeting the monthly payments to arrange a payment schedule.
Taking money from your retirement account or tapping the cash value of your life insurance policy to pay bills or living expenses may have serious implications you haven't considered, so try to get advice from an expert before you take any major financial actions.
Credit cards can be invaluable in a crisis, since they allow you to charge items and pay them off over time. But they can also be dangerous if you aren't careful and charge more than you can afford. If you do use credit cards, choose those with the lowest interest rates and pay them back as soon as you can to cut your costs.
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