The first day of Spring has come and gone. And it seems that the outlook of our industry and the Country is starting to turn the corner. The better days on the stock market makes everyone who has a 401k breath a little easier and even those who weren’t invested can look at the news and see less pessimism . And Monday the report of National Real Estate sales took a turn for the better.
Locally, THDA announced a new program where a person who hasn’t owned a home in three years can borrow the money for a down payment and then pay it back from the tax credit of $8,000. Or they can get a 4% grant from THDA (with a slightly higher rate) and still get their $8,000. So on a $175,000 home the total of free cash is $15,000. Couple this with great interest rates and bargain basement home prices and you have a great situation.
Tuesday, March 24, 2009
Tuesday, March 10, 2009
Don't Believe These 7 Credit Card Myths
They sound sensible, but acting on them can cost you
Myth No. 1: Writing 'See ID' on the signature line on the back of your cards will stop a credit card thief cold and absolve you of any liability if a thief uses it.
The Logic: The "Ask for ID" or "See ID" prompt reminds salespeople to confirm that the name on the credit card matches that of the person holding it.
The Reality: An unsigned credit card is invalid, technically, according to the agreements that card issuers have with retailers. Many clerks don't even check for signatures at all. If you do give a clerk an unsigned card or one with "See ID" written instead, they're supposed to have you sign the back of the card and check the signature against your driver's license or passport. But that's only if the cashier bothers to take the time to compare that signature to the one on the driver's license.
Myth No. 2: There's no credit limit on your American Express card, so you can buy anything you want.
The Logic: Years of powerful advertising from American Express have probably locked at least one of their messages in your mind: "No preset spending limit."
The Reality: AmEx has changed; it no longer issues only charge cards. They issue credit cards, which allow you to carry a balance. However, if you inspect the marketing info from Amex, the phrase "no preset spending limit" usually comes with an asterisk. In the fine print, you'll find wording to the effect that this "... does not mean unlimited spending. Your purchases are approved based on a variety of factors, including current spending patterns, your payment history, credit record and financial resources known to us."
Myth No. 3: You need one of each of the big cards -- Visa, MasterCard, American Express and Discover -- in your wallet because you may be stuck someplace that accepts one and not the others.
The Logic: People wonder if the place they're going will take the card(s) they have probably because of TV ads for Visa that show flashy restaurants & exclusive hotspots ... that don't take American Express."
The Reality: "If you have two of the big four, you're not likely to have any problems," says Linda Sherry, national priorities director for Consumer Action in Washington, D.C., "and millions of people just get by with one. It's much simpler."
Myth No. 4: You can give your credit score a boost by paying more than you owe.
The Logic: Paying more than you owe does temporarily bump up the amount of available credit on your card. It's also true that using a smaller percentage of the credit available in your accounts -- known in the industry as keeping a "low utilization ratio" -- helps your credit score. Lastly, it's thought that early credit scoring models may have given people a boost when they paid a personal or car loan a month early, so some may think that the same thing would apply to their plastic.
The Reality: "Even though you may be below zero on an account, it's assumed that's a temporary situation," says Roslyn Whitehurst, a spokesperson with the credit bureau Experian. "Whether you've got a credit of $100 or $1,000, it still shows as a zero balance for scoring purposes."
Myth No. 5: Using your debit card wisely can help your credit score.
The Logic: Debit and credit cards look alike, both bearing Visa, MasterCard or other logos. They're treated virtually the same by retailers. Thus, both should have an impact on credit scoring.
The Reality: "Having a bank account with a debit card and maintaining it properly shows that you're a responsible consumer," says Sherry. "But it is not taken into account" in credit scores, she says.
Myth No. 6: Retailers can set a minimum amount you can charge on a credit card when you buy something from them.
The Logic: In a small store or restaurant, it's not uncommon to find a sign that says, "$5 minimum for credit card purchases." If this wasn't allowed by the credit card companies, surely they'd crack down on it.
The Reality: Retailers who set minimum charges are breaking their agreements with the card companies. Because retailers pay interchange fee (on average, about 2% of the sale) plus possible transaction fees on each credit card purchase. When a store owner posts a sign like this, they risk losing their ability to accept cards. "You're allowed to charge any amount on your card, even a penny," says Zeichner. "The problem is that the retailer wants you to charge enough to make it worth his while."
Myth No. 7: If you go over your credit limit and pay it back before the due date, you'll be fine.
The Logic: Lots of people go over their credit limits. After all, credit card companies don't want to embarrass you and lose you as a customer, so they rarely decline your purchase. As long as you're a good customer and you keep the overage reasonable, they won't hit you with an over-the-limit fee.
The Reality: It's true that credit card companies don't want to decline your purchase when you go over your limit. And if you're buying something that puts you a few dollars or more over the top, there's a good chance they'll give you the green light. But remember, every time you pass that credit limit, even for a short period, you could give the issuer a reason to boost your interest rate to penalty rate levels -- sometimes more than 30 percent. To avoid fees, try calling before your purchase to see if they can give you at least a little bump in your credit line.
http://finance.yahoo.com/banking-budgeting/article/106525/Don
Sent by Jennifer Hamby
Myth No. 1: Writing 'See ID' on the signature line on the back of your cards will stop a credit card thief cold and absolve you of any liability if a thief uses it.
The Logic: The "Ask for ID" or "See ID" prompt reminds salespeople to confirm that the name on the credit card matches that of the person holding it.
The Reality: An unsigned credit card is invalid, technically, according to the agreements that card issuers have with retailers. Many clerks don't even check for signatures at all. If you do give a clerk an unsigned card or one with "See ID" written instead, they're supposed to have you sign the back of the card and check the signature against your driver's license or passport. But that's only if the cashier bothers to take the time to compare that signature to the one on the driver's license.
Myth No. 2: There's no credit limit on your American Express card, so you can buy anything you want.
The Logic: Years of powerful advertising from American Express have probably locked at least one of their messages in your mind: "No preset spending limit."
The Reality: AmEx has changed; it no longer issues only charge cards. They issue credit cards, which allow you to carry a balance. However, if you inspect the marketing info from Amex, the phrase "no preset spending limit" usually comes with an asterisk. In the fine print, you'll find wording to the effect that this "... does not mean unlimited spending. Your purchases are approved based on a variety of factors, including current spending patterns, your payment history, credit record and financial resources known to us."
Myth No. 3: You need one of each of the big cards -- Visa, MasterCard, American Express and Discover -- in your wallet because you may be stuck someplace that accepts one and not the others.
The Logic: People wonder if the place they're going will take the card(s) they have probably because of TV ads for Visa that show flashy restaurants & exclusive hotspots ... that don't take American Express."
The Reality: "If you have two of the big four, you're not likely to have any problems," says Linda Sherry, national priorities director for Consumer Action in Washington, D.C., "and millions of people just get by with one. It's much simpler."
Myth No. 4: You can give your credit score a boost by paying more than you owe.
The Logic: Paying more than you owe does temporarily bump up the amount of available credit on your card. It's also true that using a smaller percentage of the credit available in your accounts -- known in the industry as keeping a "low utilization ratio" -- helps your credit score. Lastly, it's thought that early credit scoring models may have given people a boost when they paid a personal or car loan a month early, so some may think that the same thing would apply to their plastic.
The Reality: "Even though you may be below zero on an account, it's assumed that's a temporary situation," says Roslyn Whitehurst, a spokesperson with the credit bureau Experian. "Whether you've got a credit of $100 or $1,000, it still shows as a zero balance for scoring purposes."
Myth No. 5: Using your debit card wisely can help your credit score.
The Logic: Debit and credit cards look alike, both bearing Visa, MasterCard or other logos. They're treated virtually the same by retailers. Thus, both should have an impact on credit scoring.
The Reality: "Having a bank account with a debit card and maintaining it properly shows that you're a responsible consumer," says Sherry. "But it is not taken into account" in credit scores, she says.
Myth No. 6: Retailers can set a minimum amount you can charge on a credit card when you buy something from them.
The Logic: In a small store or restaurant, it's not uncommon to find a sign that says, "$5 minimum for credit card purchases." If this wasn't allowed by the credit card companies, surely they'd crack down on it.
The Reality: Retailers who set minimum charges are breaking their agreements with the card companies. Because retailers pay interchange fee (on average, about 2% of the sale) plus possible transaction fees on each credit card purchase. When a store owner posts a sign like this, they risk losing their ability to accept cards. "You're allowed to charge any amount on your card, even a penny," says Zeichner. "The problem is that the retailer wants you to charge enough to make it worth his while."
Myth No. 7: If you go over your credit limit and pay it back before the due date, you'll be fine.
The Logic: Lots of people go over their credit limits. After all, credit card companies don't want to embarrass you and lose you as a customer, so they rarely decline your purchase. As long as you're a good customer and you keep the overage reasonable, they won't hit you with an over-the-limit fee.
The Reality: It's true that credit card companies don't want to decline your purchase when you go over your limit. And if you're buying something that puts you a few dollars or more over the top, there's a good chance they'll give you the green light. But remember, every time you pass that credit limit, even for a short period, you could give the issuer a reason to boost your interest rate to penalty rate levels -- sometimes more than 30 percent. To avoid fees, try calling before your purchase to see if they can give you at least a little bump in your credit line.
http://finance.yahoo.com/banking-budgeting/article/106525/Don
Sent by Jennifer Hamby
Wednesday, March 4, 2009
Don’t let the refinance opportunity pass!
Since the middle of December we have been delivering our own version of the stimulus to many of our clients. That is: we have been refinancing a lot of loans. It slowed a little the last two or three weeks when rates crept upward. But they have dropped back some again. We really don’t think you will see them get much lower if any. And picking the bottom of mortgage rates is like trying to outguess the stock market. Here are many reasons to take a look at it.
Lower rate and payment
Lower number of years
Pull out cash to pay off higher rate debts
Pull out money to improve your home
And you may have another idea. I don’t charge to run the numbers for you. Just call 615-777-HOME (4663) or e-mail george.margrave@migonline.com
Here is what I need to know:
Your best guess as to value of your home.
Loan balance of first mortgage and monthly payment
Balance for second mortgage and monthly payment
Annual taxes
Annual insurance
Approximate credit score
Would you like some cash from the loan and if so how much?
Would you want to add the closing cost to the loan?
How many years do you want me to figure?
Lower rate and payment
Lower number of years
Pull out cash to pay off higher rate debts
Pull out money to improve your home
And you may have another idea. I don’t charge to run the numbers for you. Just call 615-777-HOME (4663) or e-mail george.margrave@migonline.com
Here is what I need to know:
Your best guess as to value of your home.
Loan balance of first mortgage and monthly payment
Balance for second mortgage and monthly payment
Annual taxes
Annual insurance
Approximate credit score
Would you like some cash from the loan and if so how much?
Would you want to add the closing cost to the loan?
How many years do you want me to figure?
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