You know August is approaching when temperatures are heating up and air conditioners seem to be constantly humming -- and staying cool is on everyone's mind.
But many home owners are equally concerned about how they can cut down on their energy consumption and reduce their monthly cooling bills.
The American Council for an Energy Efficient Economy (ACEEE) has a few suggestions:
Clean or replace air filters in air-conditioning units to keep cool air moving and to reduce electricity consumption.
Have an air conditioner tune-up performed by a qualified contractor.
Make sure your attic, which traps a lot of hot air, is adequately insulated.
Replace old equipment. A new high-efficiency unit not only pares down utility bills; it can help you qualify for a federal income tax credit. But before you buy something new, do your research. "Often people are so desperate to replace their equipment that they don’t take the time to research the investment, locking themselves into high cooling bills and less comfort," says ACEEE researcher Katie Ackerly.
Wednesday, August 1, 2007
July Round Up: Rates Tick Down
In Freddie Mac's results of its Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 6.69 percent with an average 0.4 point for the week ending July 26, 2007, down from the previous week when it averaged 6.73. Last year at this time, the 30-year FRM averaged 6.72 percent.
The 15-year FRM averaged 6.37 percent with an average 0.4 point, down slightly from the previous week when it averaged 6.38 percent. A year ago, the 15-year FRM averaged 6.34 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.30 percent, with an average 0.4 point, down from the previous week when it averaged 6.35 percent. A year ago, the 5-year ARM averaged 6.35 percent.
"Mortgage rates eased this week on market concerns that a further weakening of housing demand this spring will delay any recovery in the sector," said Frank Nothaft, Freddie Mac vice president and chief economist. "For example, building permits fell last month to the slowest pace in a decade, and more recent data on June sales of existing home showed a fourth consecutive monthly decline."
"Several factors contributed to the softening in housing markets this spring. In addition to the tightening of lending standards earlier this year, especially on subprime loans, the 40 basis point jump in rates on 30-year fixed-rate mortgages in June may have deterred potential buyers. For the year-to-date, sales of single-family homes were down about 9 percent from the first half of 2007."
The 15-year FRM averaged 6.37 percent with an average 0.4 point, down slightly from the previous week when it averaged 6.38 percent. A year ago, the 15-year FRM averaged 6.34 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.30 percent, with an average 0.4 point, down from the previous week when it averaged 6.35 percent. A year ago, the 5-year ARM averaged 6.35 percent.
"Mortgage rates eased this week on market concerns that a further weakening of housing demand this spring will delay any recovery in the sector," said Frank Nothaft, Freddie Mac vice president and chief economist. "For example, building permits fell last month to the slowest pace in a decade, and more recent data on June sales of existing home showed a fourth consecutive monthly decline."
"Several factors contributed to the softening in housing markets this spring. In addition to the tightening of lending standards earlier this year, especially on subprime loans, the 40 basis point jump in rates on 30-year fixed-rate mortgages in June may have deterred potential buyers. For the year-to-date, sales of single-family homes were down about 9 percent from the first half of 2007."
Current Mortgage Rates
30 yr fixed:
6.69%
15 yr fixed:
6.37%
1 yr adj:
5.69%
30 yr jumbo:
(U.S. Daily Averages)
6.69%
15 yr fixed:
6.37%
1 yr adj:
5.69%
30 yr jumbo:
(U.S. Daily Averages)
Seven Steps to a Credit Score Makeover
You can mitigate the effect of tighter mortgage underwriting standards by improving your credit report profile and, as a result, your credit score.
Just don't expect that your knee-jerk reaction to tighter money will generate overnight success. Chances are, you didn't get all those credit report blemishes during a single credit buying binge. And, if you are like many consumers, you don't even know what you are up against.
BankRate.com recently found that 32 percent of Americans surveyed never check their credit reports and have no idea what shape it's in. It's time to find out and do something about it.
Local lenders say the incidence of credit report knowledge is even higher when borrowers sit down to apply for home loans. "Less than 10 percent have seen their report and among those who have, most of the reports are old, many are only from one bureau and so they don't have a complete picture," said Joel Spolin, president of Absolute Mortgage in Palo Alto, CA.
Your credit report is a sort of fiscal fitness report on your credit habits and the information it contains factors heavily into your credit score, a statistical analysis or numerical value placed on your credit behavior. Your credit score is commonly used to nay or yea your requests for credit and determine how much you'll pay for credit approved.
Here are seven starter steps to take toward improving your creditworthiness.
Get your credit report and look for errors.
These days getting a credit report should be the no-brainer first step toward improving your chances of landing credit at the best price possible.
Simply go online to AnnualCreditReport.com, the ONLY federally-sanctioned and cost-free service, and obtain a free credit report from Equifax, Experian and TransUnion. Given the year is more than half over, get your report from at least two companies, perhaps three. Next year set up your own credit monitoring service by getting a report from a different company every four months. Again, through AnnualCreditReport.com, each report is free.
Questions? Call (877) 322-8228 for details about your free credit report rights.
"We advise the client to get one report, pulled by a lender or broker and then use this report to share with other brokers so their credit is not getting constantly pulled," said Paul Garcia
A trusted lender or broker can pull your report for you and show you the ropes. Limiting the number of credit report pulls is also key. However, someone pulling your credit report can charge you a fee and the pull will show up on your credit report, though with little consequence.
Get your feet wet the first time around. Pull your own free credit report. Examine it for errors. That's the spirit of the law, to give you control and knowledge. Bring in a realty pro later, if necessary.
"It's good to get the report so the borrower knows what they are dealing with and to determine if any corrective actions need to be taken," said Garcia.
Check credit limits and attempt to keep balances evenly distributed across credit lines, advises attorney Edward Jamison, with the Los Angeles, CA Jamison Law Group he founded to specialize in consumer credit and identity theft.
Make sure your maximum credit limit is reported for each account.
"When no limit is reported, credit scoring software presumes the account is 'maxed out'." Jamison says credit scoring software scores more favorably when the balance is 50 percent or below, but too many open accounts with zero balances could lower the score with the assumption you could suddenly run up a lot of credit.
Keep some credit cards open. Close others. Open credit cards with limited balances and good payment records raises scores, especially long-time credit cards. However, the accounts should be limited in number and well-managed.
"Closing credit card accounts can hurt your score unless the accounts were opened less than two years ago, and you have more six credit cards," says Jamison.
It's about striking a balance.
"Credit scoring software assumes that people who have had credit for a longer time are at less risk of defaulting on payments," Jamison said.
Where possible, get rid of late payments listed on the credit report. Jamison says if your late payments are dated and you've been a good credit customers for some time creditors may, in good faith, adjust your statement. "If you are a customer in good standing, the creditor may work with you," he said.
The effort isn't easy. A demanding, frustrated and rude approach will make it more difficult. The lender isn't required to remove dings for 7 to 10 years in some cases.
Pay off collection accounts and past due amounts. Payoffs and paying past due accounts start the clock running on how long the ding will remain on your report. In some cases the collection agency or creditor may remove the ding, says Jamison. Again, it's not easy.
"The consumer should contact the collector and request a letter explicitly stating their agreement to delete the account upon receipt or clearance of the payment," he said.
Likewise, whenever possible, seek to have charge-offs and liens that are less than two years old removed.
"Charge-offs and liens that are older than 24 months do not affect your credit score nearly as much as ones under 24 months," says Jamison. "But if they're newer than 24 months, they can seriously damage your credit," revealing you as a more recent credit slacker.
Keep in mind, all efforts to improve your credit, other than correcting errors, are typically based on you being a mature credit consumer -- pay your bills on time, don't overload yourself with debt and get in touch with lenders at the first sign of trouble for workouts than can help save your credit or reduce the damage to your report and your credit score.
Written by Broderick Perkins.
Just don't expect that your knee-jerk reaction to tighter money will generate overnight success. Chances are, you didn't get all those credit report blemishes during a single credit buying binge. And, if you are like many consumers, you don't even know what you are up against.
BankRate.com recently found that 32 percent of Americans surveyed never check their credit reports and have no idea what shape it's in. It's time to find out and do something about it.
Local lenders say the incidence of credit report knowledge is even higher when borrowers sit down to apply for home loans. "Less than 10 percent have seen their report and among those who have, most of the reports are old, many are only from one bureau and so they don't have a complete picture," said Joel Spolin, president of Absolute Mortgage in Palo Alto, CA.
Your credit report is a sort of fiscal fitness report on your credit habits and the information it contains factors heavily into your credit score, a statistical analysis or numerical value placed on your credit behavior. Your credit score is commonly used to nay or yea your requests for credit and determine how much you'll pay for credit approved.
Here are seven starter steps to take toward improving your creditworthiness.
Get your credit report and look for errors.
These days getting a credit report should be the no-brainer first step toward improving your chances of landing credit at the best price possible.
Simply go online to AnnualCreditReport.com, the ONLY federally-sanctioned and cost-free service, and obtain a free credit report from Equifax, Experian and TransUnion. Given the year is more than half over, get your report from at least two companies, perhaps three. Next year set up your own credit monitoring service by getting a report from a different company every four months. Again, through AnnualCreditReport.com, each report is free.
Questions? Call (877) 322-8228 for details about your free credit report rights.
"We advise the client to get one report, pulled by a lender or broker and then use this report to share with other brokers so their credit is not getting constantly pulled," said Paul Garcia
A trusted lender or broker can pull your report for you and show you the ropes. Limiting the number of credit report pulls is also key. However, someone pulling your credit report can charge you a fee and the pull will show up on your credit report, though with little consequence.
Get your feet wet the first time around. Pull your own free credit report. Examine it for errors. That's the spirit of the law, to give you control and knowledge. Bring in a realty pro later, if necessary.
"It's good to get the report so the borrower knows what they are dealing with and to determine if any corrective actions need to be taken," said Garcia.
Check credit limits and attempt to keep balances evenly distributed across credit lines, advises attorney Edward Jamison, with the Los Angeles, CA Jamison Law Group he founded to specialize in consumer credit and identity theft.
Make sure your maximum credit limit is reported for each account.
"When no limit is reported, credit scoring software presumes the account is 'maxed out'." Jamison says credit scoring software scores more favorably when the balance is 50 percent or below, but too many open accounts with zero balances could lower the score with the assumption you could suddenly run up a lot of credit.
Keep some credit cards open. Close others. Open credit cards with limited balances and good payment records raises scores, especially long-time credit cards. However, the accounts should be limited in number and well-managed.
"Closing credit card accounts can hurt your score unless the accounts were opened less than two years ago, and you have more six credit cards," says Jamison.
It's about striking a balance.
"Credit scoring software assumes that people who have had credit for a longer time are at less risk of defaulting on payments," Jamison said.
Where possible, get rid of late payments listed on the credit report. Jamison says if your late payments are dated and you've been a good credit customers for some time creditors may, in good faith, adjust your statement. "If you are a customer in good standing, the creditor may work with you," he said.
The effort isn't easy. A demanding, frustrated and rude approach will make it more difficult. The lender isn't required to remove dings for 7 to 10 years in some cases.
Pay off collection accounts and past due amounts. Payoffs and paying past due accounts start the clock running on how long the ding will remain on your report. In some cases the collection agency or creditor may remove the ding, says Jamison. Again, it's not easy.
"The consumer should contact the collector and request a letter explicitly stating their agreement to delete the account upon receipt or clearance of the payment," he said.
Likewise, whenever possible, seek to have charge-offs and liens that are less than two years old removed.
"Charge-offs and liens that are older than 24 months do not affect your credit score nearly as much as ones under 24 months," says Jamison. "But if they're newer than 24 months, they can seriously damage your credit," revealing you as a more recent credit slacker.
Keep in mind, all efforts to improve your credit, other than correcting errors, are typically based on you being a mature credit consumer -- pay your bills on time, don't overload yourself with debt and get in touch with lenders at the first sign of trouble for workouts than can help save your credit or reduce the damage to your report and your credit score.
Written by Broderick Perkins.
Wednesday, July 11, 2007
Prestamistas Predadores
Señales de cuidado:
1. Facil:"Aprobamiento garantizado" o "sin verificarle los ingresos", sin tener en cuenta el empleo, la historia de credito, bienes. Estos avisos pueden indicar que el prestamista no le importe si usted podra pagar su hipoteca a largo plazo.
2. Excesivos cobros: Como los costos son financiados como parte del prestamo pueden ser faciles de esconder. Es comun para un nuevo comprador pagar unicamente 1% del valor del prestamo principal. En contraste, un tipico prestamista predador le puede costar del 3% al 5% mas.
3.Pagos grandes en el futuro:Prestamos ajustables de alto riesgo.
4.Demoras para ir al cierre:El prestamista atrasando el cierre creando que su primer ofrecido "buen interes" se pierda por los atrasos.
5.Propiedad con precio inflado:Avaluos inflados que permiten cobros excesivos dando como resultado que el propietario termina debiendo mas de lo que la propiedad realmente vale.
6.Barreras para refinanciar:Penalidades que hacen dificil el futuro refinanciamiento (de ser necesario). Pueden ser de un año hasta tres años en la mayoria de los casos.
7.Prestamos sin cuota inicial:El prestamo se divide en dos , generalmente 80% y 20%, el segundo prestamo el interes es mucho mas alto. En este caso asegurese que usted pueda hacer los pagos, hoy en dia la valorizacion de las casas volvio a promedios normales donde refinanciar al año es mas dificil (puede tomar ahora de 2 a 3 años), todo dependiendo de como este el mercado en su especifica area.
8.Manejo de documentacion sin etica:Prestamistas con etica siempre le haran firmar papeles de importancia para este proceso con la debida explicacion.
CONCLUSION: No tenga miedo de preguntar si algo no le queda claro, el prestamista tiene la obligacion de darle a usted el llamado "GOOD FAITH ESTIMATE" o estimado de buena fe, ahi saldran todos los posibles costos, variaciones pueden ocurrir (generalmente debido a los taxes que cobran los condados/varian segun condado), pero el total es muy aproximado a lo que usted encontrara el dia que vaya al "cierre".
1. Facil:"Aprobamiento garantizado" o "sin verificarle los ingresos", sin tener en cuenta el empleo, la historia de credito, bienes. Estos avisos pueden indicar que el prestamista no le importe si usted podra pagar su hipoteca a largo plazo.
2. Excesivos cobros: Como los costos son financiados como parte del prestamo pueden ser faciles de esconder. Es comun para un nuevo comprador pagar unicamente 1% del valor del prestamo principal. En contraste, un tipico prestamista predador le puede costar del 3% al 5% mas.
3.Pagos grandes en el futuro:Prestamos ajustables de alto riesgo.
4.Demoras para ir al cierre:El prestamista atrasando el cierre creando que su primer ofrecido "buen interes" se pierda por los atrasos.
5.Propiedad con precio inflado:Avaluos inflados que permiten cobros excesivos dando como resultado que el propietario termina debiendo mas de lo que la propiedad realmente vale.
6.Barreras para refinanciar:Penalidades que hacen dificil el futuro refinanciamiento (de ser necesario). Pueden ser de un año hasta tres años en la mayoria de los casos.
7.Prestamos sin cuota inicial:El prestamo se divide en dos , generalmente 80% y 20%, el segundo prestamo el interes es mucho mas alto. En este caso asegurese que usted pueda hacer los pagos, hoy en dia la valorizacion de las casas volvio a promedios normales donde refinanciar al año es mas dificil (puede tomar ahora de 2 a 3 años), todo dependiendo de como este el mercado en su especifica area.
8.Manejo de documentacion sin etica:Prestamistas con etica siempre le haran firmar papeles de importancia para este proceso con la debida explicacion.
CONCLUSION: No tenga miedo de preguntar si algo no le queda claro, el prestamista tiene la obligacion de darle a usted el llamado "GOOD FAITH ESTIMATE" o estimado de buena fe, ahi saldran todos los posibles costos, variaciones pueden ocurrir (generalmente debido a los taxes que cobran los condados/varian segun condado), pero el total es muy aproximado a lo que usted encontrara el dia que vaya al "cierre".
Prestamos de Amortizacion Negativa
"Que bueno, saque un prestamo al 1% o 2%" CUIDADO!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!. Esos prestamos son los llamados amortizacion negativa.
Los intereses reales en promedio para prestamos con amortizacion fija a 30 años pueden estar entre el 6.25% al 7%, cuando a usted le ofrecen pagar menos de ese interes realmente lo que hace es que la cantidad que usted debe aumente en lugar de bajar ya que los intereses reales que usted esta dejando de pagar son añadidos al balance de su prestamo. Ese tipo de prestamo generalmente favorece a inversionistas que compran propiedades para renovar y posteriormente vender a corto plazo donde la eventual ganancia cubriria los intereses no pagados.
Los intereses reales en promedio para prestamos con amortizacion fija a 30 años pueden estar entre el 6.25% al 7%, cuando a usted le ofrecen pagar menos de ese interes realmente lo que hace es que la cantidad que usted debe aumente en lugar de bajar ya que los intereses reales que usted esta dejando de pagar son añadidos al balance de su prestamo. Ese tipo de prestamo generalmente favorece a inversionistas que compran propiedades para renovar y posteriormente vender a corto plazo donde la eventual ganancia cubriria los intereses no pagados.
FORECLOSURE & SHORT SALE
El Foreclosure y el Short Sale son terminos que estamos escuchando ultimamente con mucha frecuencia. Cuando compramos una propiedad con dinero prestado por la institucion financiera nos comprometemos a pagar una hipoteca (mortgage) mes a mes, si no lo hacemos nuestra propiedad es la garantia de pago para la institucion bancaria. El banco o institucion financiera procederia a vender la casa por sus propios medios pra recuperar el prestamo o dinero debido.
El proceso para hacerlo se llama "Foreclosure". Puede durar de 5 a 7 meses dependiendo de las politicas de la institucion financiera. Una manera de detener este proceso es pagando la deuda que se tenga a la fecha;para lograrlo generalmente se pondria la casa a la venta y asi una vez vendida se cumple con la obligacion financiera. Si esto no resultara la institucion financiera fijaria una fecha en la que la propiedad se remataria (subastaria) publicamente.
En dado caso que la deuda pendiente con la institucion financiera sea mas grande que la cantidad por la cual la propiedad pueda ser vendida, dicha institucion no recuperaria todo el dinero que se le adeuda y se le pediria que autorizaran el llamado "Short Sale".
Para autorizar dicho proceso la institucion considera primero si el vendedor es merecedor de esa ayuda basado en situaciones como perdida de empleo,divorcio, enfermedad. Tambien la institucion estudia si costaria menos reposeer la propiedad o venderla empleando una agencia de bienes raices.
Para el propietario, el "Short Sale"le resulta ventajoso puesto que su credito no reflejaria "bancarrota", que indicaria que usted basicamente nunca cumplio con la obligacion.
El proceso para hacerlo se llama "Foreclosure". Puede durar de 5 a 7 meses dependiendo de las politicas de la institucion financiera. Una manera de detener este proceso es pagando la deuda que se tenga a la fecha;para lograrlo generalmente se pondria la casa a la venta y asi una vez vendida se cumple con la obligacion financiera. Si esto no resultara la institucion financiera fijaria una fecha en la que la propiedad se remataria (subastaria) publicamente.
En dado caso que la deuda pendiente con la institucion financiera sea mas grande que la cantidad por la cual la propiedad pueda ser vendida, dicha institucion no recuperaria todo el dinero que se le adeuda y se le pediria que autorizaran el llamado "Short Sale".
Para autorizar dicho proceso la institucion considera primero si el vendedor es merecedor de esa ayuda basado en situaciones como perdida de empleo,divorcio, enfermedad. Tambien la institucion estudia si costaria menos reposeer la propiedad o venderla empleando una agencia de bienes raices.
Para el propietario, el "Short Sale"le resulta ventajoso puesto que su credito no reflejaria "bancarrota", que indicaria que usted basicamente nunca cumplio con la obligacion.
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