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Does a Home Equity Loan have the Same Rate as My Mortage
Author: usmsci
Posted: Tue Sep 27, 2005 10:54 am
Post subject: Home Equity Loan.. Questions and Comments.. I bought my home in April for around $110,000. its a nice 3bed and 2 bath, brand new, never been lived in, roughly 1,450 sq.ft. anyway April of 2006 i will have had it a year and want to take out a home equity loan on the house. the first question is, is this too soon or is a year ok? will the house need to be appraised again? how much would i expect on average to get? if i was approved for 20,000 does that just get added on to the existing balance on the house/mortgage and they just write me a check for 20k? my interest rate is 5.5% as a Fixed 30-yr mortgage. could i suffer a higher interest rate if i get a equity loan or not? i want to pay off my car(which i am paying 15.99%) and do some home improvements inside and outside the house. a 5.5% instead of 15.99% on a car is going to save me lots of interest money. i figured it out and it would cost about 20,000 for everything that i wanted..of course i am flexible. This includes putting $1,000 or so in a ROTH IRA to get that ball moving and possibly putting money in a few other places. my credit wasnt the greatest when i got my car loan and i am paying for it but now my credit is better.. FICO score is 656 and i was approved on the house with a score of 626-650 or so using all 3 reporting agencies. i calculate that i will be close to 700 by April rolls around as i have some negative information coming off my credit report at the end of the year. i might think of some more to say but thanks in advance for all your advice..
Polonius
Posted: Tue Sep 27, 2005 3:41 pm
Post subject: Home Equity Loan have
the Same Rate as My Mortage The HEL or HELOC is completely separate from your mortgage--it will have its own terms and interest rate. There's no "too early" notion about applying for equity loans--everything depends on the equity of your home today and of course your own income and debt to income ratio. Each lender makes its own decisions on what you would qualify for. I'd suggest getting offers through LendingTree.com--they're free and will give you an idea of what you can get. I live in what one magazine called the second most overpriced housing area in the country! Prices go up over 15% per year here. That's bound to come to an end, hopefully not soon. Of course, leveraging your housing equity to the maximum can land you in trouble if prices fall. You know that.
Author: usmsci
Posted: Tue Sep 27, 2005 3:44 pm
Post subject: Home Equity Loan have
the Same Rate as My Mortage how do these terms and rates compare to regular mortgage rates? are they comparable??
Author: Polonius
Posted: Tue Sep 27, 2005 4:16 pm
Post subject: Home Equity Loan have
the Same Rate as My Mortage According to www.bankrate.com/brm/static/rate-roundup.asp Thirty-year fixed rate mortgages--Rate: 5.88 percent (30-year fixed) Average Points: 0.36 .............................................................. Home equity products Rates: 6.76 percent (line of credit); 7.18 percent (loan) But there are special deals all over the place--these are just averages; you could do better or worse. My own Citibank HELOC is at prime less .25%, so 6.5% now--and it had no closing fees of any kind (no points, no appraisal fees--nothing). And I only have to pay the interest for the first 10 years--no principal payment required until the 11th year.
Author: BestMortgageInfo
Posted: Tue Sep 27, 2005 8:09 pm
Post subject: Home Equity Loan have
the Same Rate as My Mortage Yes, an appraisal will have to be done for the new loan. In some cases lenders will pay for them, and have a 3 year prepayment penalty to recoup the costs if you pay off the loan early. Be careful of HELOCs. Your initial lender may report it as a mortgage type loan, and the lender that buys the loan may report it as a credit line. A credit line, where you have over 50% Utilization, can really hurt your credit score. HELOANS are fixed rate 2nds. The initial rate may be higher, but it won't go any higher. Or lower. Stability and no surprises are sometimes worth a few $ per month. Lastly. I do mortgages, and I do my best to talk people out of paying for a car over 30 years. Some of them don't last that long. With your scores, try to refinance. One on line Auto refinance company is Patelco. You can probably cut your rate in half or better.
Author: usmsci
Posted: Wed Sep 28, 2005 8:46 am
Post subject: Home Equity Loan have
the Same Rate as My Mortage ok thanks for all your help... somehow i was thinking that you could put whatever you borrowed on your house and that way you would still keep that same rate on your mortgage. Again i am paying 5.5% right now on my house. it would be nice to put the $9k i have left on my car on the house and therefore my mortgage payments will be a little higher but i wouldnt be paying that outrageous APR. see what i mean? is this possible or was this something i just dreamed? One more question..as i mentioned earlier ive only had the house since April so not much equity. someone said above that it really didnt matter that much, you could apply for a Home Equity Loan at any time. i was under the impression it was best to wait at least a year to make sure you have increased the value of your home somewhat. what are your thoughts? oh yeah what does it mean by average points?? sorry i am new to all this lingo.. thanks for your help...
Author: BestMortgageInfo
Posted: Wed Sep 28, 2005 9:38 am
Post subject: Home Equity Loan have
the Same Rate as My Mortage The reason for a year is that by that time there are normally enough other sales in your area to justify any increase in value. If you get a home equity loan, if you do it now, chances are the value of your home will not have gone up much since when you bought it. The "rates and points" The average of all the loans that they grouped together had an interest rate of 5.88, Probably the average rate should have been 6%, but it was lowered by the borrower paying .36% to lower the rate to the 5.88. Keep in mind that over time, the average home owner either buys another home, or sells theirs to retire, or refinances every 5-7 years, so you need to be carefull when you buy down a rate. If the net savings in the payments take longer than 5 years to break even, then it may not make sense. Author: usmsci
Posted: Wed Sep 28, 2005 10:20 am
Post subject: Home Equity Loan have
the Same Rate as My Mortage thanks for your help.. i went to the Patelco website and i didnt see anything on there about refinancing...just on if i were buying a car... so i emailed them..
Author: usmsci
Posted: Mon Oct 03, 2005 11:39 am
Post subject: Home Equity Loan have
the Same Rate as My Mortage BestMortgageInfo wrote:
One on line Auto refinance company is Patelco. You can probably cut your rate in half or better. i was approved by Patelco but in order to take advantage of the loan i have to be a member of Patelco. In order to be a member you have to be eligible to join. if you look at the requirements to join here: http://www.patelco.org/apply/eligibility.aspx which seems outrageous... i mean gimme a break i live in Mississippi so by default i am inelgible pretty much right there. Really amazes me how they would let someone apply for credit with them if they dont live in california.. really stupid if you ask me..
Author: Polonius
Posted: Thu Oct 06, 2005 11:14 am
Post subject: Home Equity Loan have
the Same Rate as My Mortage That link shows several ways non-California residents can join Patelco, including this one: Quote: You are a member of the California Association for Older Americans. Anyone can join this assocation, regardless of age or geographic location. Just indicate California Association for Older Americans on your application. Notice it's not even asking for proof of membership... Curiously, I can't find a link to the association in a Google search. I uncovered one link that has moved...
HELOC for Less Than Perfect Credit
Author: scarymary
Posted: Thu Oct 06, 2005 11:33 am
Post subject: Please help with HELOC!!! - OK... in the past 4 days I have applied to... ING Commerce Bank of America All have declined hubby and me for a HELOC. House is worth $250k Mortgage bal is $112,577 Income is $82K Credit scores in mid-600's We desparately need to put a roof on the house. Any idea where to go next??????????????????????????????????????
Author: ams370
Posted: Thu Oct 06, 2005 1:20 pm
Post subject: HELOC for Less Than Perfect Credit Hi! My husband and i just got approved for a HELOC. Now, it doesn't have the best interest rate, but it is better than the credit cards interest rates that we are going to pay off with it. Our credit scores are not good, 500's & 600's. We went through homeloancenter.com. They match you up with a lender. They were very helpful and we applied an got approved in a matter of 2 weeks. Let me know if you need any other info.
Author: scarymary
Posted: Thu Oct 06, 2005 1:49 pm
Post subject: HELOC for Less Than Perfect Credit Thanks so much for the info. Actually, I just got approved!!! Bank One/Chase felt that we weren't as big of losers as the other banks did!! LOL I went on lendingtree.com and had an approval in an hour. Also, inquiries for mortgages and equity loans/lines, if made within a 14 day period, only count as one inquiry. As a Realtor, I could have gone thru my own mortgage broker but I am reluctant to share my personal financial info with people I work with... just my own hang up, I guess. Thanks so much fo sharing your ideas with me...
Calculate Interest on a Savings Account per Month
Author: diddlydudette
Posted: Wed Sep 28, 2005 9:08 am
Post subject: Help me calculate. Say you have 20,000 in a savings acct. with 4% interest. Interest on the account is compounded daily and credited monthly. How exactly is this calculated daily? At the end of one month, what should the total be in the account?
Author: rain
Posted: Wed Sep 28, 2005 2:05 pm
Post subject: Calculate Interest on a Savings Account per Month Its better to teach you how to calculate this, so I've listed the steps and tried my best to explain. Try it yourself. Your computer will have a calculator, even if you don't have any other calculators handy. Say you have 20,000 in a savings acct. with 4% interest. Interest on the account is compounded daily and credited monthly. How exactly is this calculated daily? At the end of one month, what should the total be in the account? a) Interest in saving accounts are usually stated on an annual basis. This means you get 4% if you leave your deposits for 1 year. However, this doesn't mean you won't get the interest payments credited to your account every month, or whenever it reaches a certain figure. Most banks credit your account with the interest payments you've earned monthly. b) What you want to do is to calculate how much interest you'll earn at the interest rate stated. In this example, lets say this is 4% interest in a year. So you take 4/100 x the amount you have deposited. lets say this is 20000. So 4/100 x 20000. This gives you 800. This means if you deposit 20000 in the account, you will get 800 interest at the end of the year. This is a very simpilified statement. -------------------------------------- Now that you know how to calculate your annual interest in figures, lets take this one step further. What happens if you want to find out how much interest you have earned in 1 day, not 1 year? c) From the example above, $800 is for 1 year. There are 365 days in a year, so you take 800/365 = 2.19. You will roughly get 2.19 interest per day. d) What if its 1 month? There are 12 months in a year. So 800/12=66.67. Each month, you will earn $66.67 more in interest. ----------------------------------------- We need to extend this another step now that you have an idea how banks calculate how much interest you've earned in a day, or in a month. When you read the fine print of your account agreement, you will usually see something like "interest rate is listed on an annual basis, accrued daily, and paid monthly". interest rate is listed on an annual basis e) This means the 4% interest you see is for a year. If you leave your $20000 money in the bank for 6 months, you will not see $800 in interest. You will see less, about $400. accrued daily f) This also means each day, your bank calculates your interest for that day. For example, look at step C again. The first day you put your money in the bank account, you have earned $2.19 interest. Leave it another day, and you have earned another $2.19. Sounds good right? paid monthly g) At the end of the month, the bank will pay you the interest you've accumulated in this month. For the first month, lets say there are 31 days. You have earned 4/100 x 20000 x 31/365 = $67.95 in interest. Your bank will add this amount to your current 20000 balance. So you will now have $20067.95. h) The next day, your bank will start accruing your interest earned again. Remember how to calculate? 4/100 x 1/365 x amount in the bank. This time, amount in the bank is 20067.95. This may seem like a small difference, but this $67.95 extra causes your interest accrued to increase. This is a good thing. When people talk about compound interest, this is basically what they mean. That the amount of interest earned is added to your original balance, and will in turn earn interest for you. So, for this next month, pretend its another 31 day month. You will have earned 4/100 x 20067.95 x 31/365 = $68.18 interest. This is slightly more than the 67.95 you have earned the previous month. ------------------------------------- Try to reread what I've written if you still don't understand. Practise working out the mathematics yourself, if possible. Maths requires practise. Back to top Author: diddlydudette
Posted: Wed Sep 28, 2005 3:48 pm
Post subject: Calculate Interest on a Savings Account per Month Rain, I totally understand how you explained. Thanks so much for taking the time to explain where I'd understand. Do finance institutions usually divide the days by 360 or 365?...or does it just depend on place? So basically you take 4% of 20,000 and divide by days (365) and that's your daily interest. Then at end of month you will have approx 66.00 and add that to 20,000 and start whole process again for next month
Higher Interest Rate than a CD
Author: diddlydudette
Posted: Tue Sep 20, 2005 9:29 pm
Post subject: Emigrantdirect.com just raised interest rates to 4.0% Dang, that's great. I just received e-mail informing me of this. I highly recommend it.
Author: Board Monitor
Board Monitor/ Administrator
Posted: Wed Sep 21, 2005 7:26 am
Post subject: EmigrantDirect has Higher interest rate than a CD Great and thanks for the post. Is this the best rate out there now? Also, I checked their site out and it says this is a money market account, but that you can use your existing checking account. How exactly does that work? _________________ Best Regards, Curtis Arnold Board Monitor http:// www.cardratings.com (501) 663-0314
Author: diddlydudette
Posted: Wed Sep 21, 2005 8:42 am
Post subject: EmigrantDirect has Higher interest rate than a CD Well Curtis according to bankrate.com, it's the highest rate right now at 4%. I imagine it's just a matter of time before others raise their rates due to competition huh? I think ING is still at only 3.3%. It's pretty easy to set up if interested in joining. You fill out app. online at Emigrantdirect.com. You give them your routing number from checking acct. Emigrant transfers a few pennies into your checking to make sure every thing linked ok with your bank. Then you verify you received funds from them in your checking acct. Then Emigrant sends you a letter to verify every thing ok and then after letter, you're able to register and login and start transferring money from your checking into your new Emigrant acct. There's no fees involved to transfer or to apply and only need 1.00 to open. I did that first to make sure everything ok before I sent more money. I felt safe with 1.00. It's fun watching money grow and I feel so much better putting money in here than at my regular in-town bank where I was only getting .6%.
Board Monitor
Board Monitor/ Administrator
Posted: Thu Sep 22, 2005 9:09 am
Post subject: EmigrantDirect has Higher interest rate than a CD Neat. 4% sounds competitive with most CD rates that I've seen, but obviously you're money isn't tied up with ING. Do you have to write so many checks each month? _________________ Best Regards, Curtis Arnold Board Monitor http:// www.cardratings.com (501) 663-0314
Author: diddlydudette
Posted: Thu Sep 22, 2005 7:18 pm
Post subject: EmigrantDirect has Higher interest rate than a CD Hi Curtis, No, I never had an online account until a couple months ago when I joined Emigrant. I was impressed with the 3.5% interest compared to my bank's .6%. I had like 20,000 sitting in my savings waiting while I get ready to buy house at end of year or beginning of next year. I figured I didn't want to long term invest so opted for the Emigrant so I could take out whenever without penalty and make a little money. It's done really well in just a couple months and now that's it 4% will do even better. I almost hate to take it out ever because it's fun to watch it grow. I'm not sure what you mean if I have to write so many checks each month. This is just a savings acct. When I deposit money into the Emigrant savings acct, I transfer from my personal checking account from my in-town bank. It's drafted out and transferred online into the savings. It's very easy to transfer back and forth. It's all done online. They even mention coming out with a new cash back credit card. I can't wait for that. Here's email I received from Emigrant: We are pleased to announce that effective today, Tuesday,
September 20, your American Dream Savings Account from EmigrantDirect now yields 4.0% APY, the highest rate in the country with no fees and no minimums, FDIC insured. Responding immediately to the most recent news from the Federal Reserve, EmigrantDirect is pleased to be able to offer this unmatched rate to our loyal customers.
You may wish to take this opportunity to put all your available funds to work for you. If you have deposits earning less interest at other institutions, now is a good time to consolidate those savings at EmigrantDirect. Electronic transfers into and out of your account are free and our new 4.0% APY is guaranteed through December 31, 2005 (subject to upward adjustments only).
Additionally, we are also pleased to announce the upcoming launch of a no-fee credit card from EmigrantDirect offering the highest cash back rebate in the country on all your purchases – from the first dollar spent on your card to the very last. This revolutionary credit card featuring platinum-level benefits will be offered only to EmigrantDirect customers and be available before yearend. Cash back amounts will be deposited into your American Dream Savings Account automatically not once, but twice a year for added convenience. If you would like to be sent a priority invitation to apply for the card once it becomes available, please send a quick email with your name and email address to emigrantdirect@emigrant.com. We hope that you will become a cardholder and discover yet another way that EmigrantDirect serves and rewards its customers with outstanding value
Author: Board Monitor
Board Monitor/ Administrator
Posted: Fri Sep 23, 2005 8:25 am
Post subject: EmigrantDirect has Higher interest rate than a CD Interesting about the credit card. Please let us know the terms when you get more info. Regarding the rate, are you sure the 4% rate isn't just temporary? They mention that it may expire on 12/31. _________________ Best Regards, Curtis Arnold Board Monitor http:// www.cardratings.com (501) 663-0314
Author: diddlydudette
Posted: Fri Sep 23, 2005 10:00 am
Post subject: EmigrantDirect has Higher interest rate than a CD Well, I thought that too about the rate...that it might go down, but if you notice it states that if it changes, it will be an upward change and not go down. So I would welcome a change actually. Just looking back on history of their interest rates, I've never seen them go down but only go upward and quite often at that. I'll let you know about the credit card. I'm very interested in what they offer.
Author: stevejk
Posted: Sat Sep 24, 2005 10:13 pm
Post subject: EmigrantDirect has Higher interest rate than a CD Board Monitor wrote:
Regarding the rate, are you sure the 4% rate isn't just temporary? They mention that it may expire on 12/31. Between ING Direct and HSBC, et al., I'm sure they would feel pressure to maintain a reasonably high return else people will bail out to other institutions. I was about ready to bail Emigrant Direct (3.5% at the time) for HSBC (3.75%) when I received word of the increase to 4.0% and now the cash back credit card. We'll see what happens in January.
Author: Maddybeagle
Posted: Tue Sep 27, 2005 7:59 pm
Post subject: EmigrantDirect has Higher interest rate than a CD I have an ING mm account, but these guys must really want to put on the pressure. ING is a little lower, but they give you a 50 buck bonus to start so that helps. From what I read from other forums ING is a favorite. I really like these since you can link your local checking account and transfer. I think it takes a few days to transfer, but a good place to park your money but still have fairly quick access to it.
Author: diddlydudette
Posted: Wed Sep 28, 2005 7:10 am
Post subject: EmigrantDirect has Higher interest rate than a CD What does this mean on the ING 50.00 promotion? This offer is only valid for purchasers of Quicken 2005 with valid PN numbers. Valid through 12/31/05. Do you have to purchase some type software Quicken in order to receive the 50.00?
Author: diddlydudette
Posted: Wed Sep 28, 2005 7:33 am
Post subject: EmigrantDirect has Higher interest rate than a CD Well, I just called ING and the 50.00 promo is if you purchase Quicken.
Author: maddybeagle Posted: Fri Sep 30, 2005 9:15 am Post subject: EmigrantDirect has Higher interest rate than a CD I got the credit from ING. Just use a code. Otherwise, there are offers for 25 bucks floating around. I saw one in kiplingers mag.
Author: tonygoldston
Posted: Fri Sep 30, 2005 11:12 pm
Post subject: EmigrantDirect has Higher interest rate than a CD I have both Emigrant and ING accounts. They work exactly the same. MM with a limit of 6 withdrawals per month. Biggest difference in the two is the web interface. ING's site is very user friendly and easy to navigate. Emigrant's is not so fun. It is functional but ugly. (my local bank WSFS uses the same system.) I would definitely sign up for ING (free money from them.) If anyone wants a referal let me know. You get $25 for opening and I get $10 What I would do then is refer to your friends, wife, etc. and rack up some money. ING has a 5 Business day hold on all deposits thru transfer so you have to be aware of that. Emigrant I don't think does. I have my paycheck direct deposit into ING (no hold) and then I have multiple accounts (very simple to sign up for them once you are a member, just "open a new account" and it adds it to your "customer #") I have auto transfers from my "paycheck" account into accounts to seperate money (i have one for the car insurance, one for the mortgage, etc.) keeps my money that is tied up seperate from money that is spendable. I also would suggest Presidential.com (it's a bank out of Bethesda, MD) that has an internet only checking account that is paying 4% now (max of $25,000 balance) but it's a checking. So I have Emigrant for savings, ING for management, and then Presidential for paying bills. (I use MBNA;s online system for most of them.) I also have a local account for depositing checks and auto payment of mortgage which is through them. But other than about $500 in the local bank, the lowest interest rate I am getting on anything is ING's 3.4% I also use Emigrant for putting money I pull from CC offers (0% BT) to sit and make money. Just paid off $8000 from a citi card that has been earning intrest for 9 months. Getting ready to pull another $10,000 from citi. Tony
50% off Coupon Code for Restaurants
Author: Board Monitor
Board Monitor/ Administrator
Posted: Mon Sep 26, 2005 8:55 am
Post subject: 50% off Coupon Code for Restaurants Anyone know any discount or coupon codes for online retailers? I know Restaurant.com has a new 50% off coupon code: 38066 that expires 9/30. I got some $25 gift certs. to some nice restaurants in our area for $5. What a deal! _________________ Best Regards, Curtis Arnold Board Monitor http:// www.cardratings.com (501) 663-0314
Author: diddlydudette
Posted: Mon Sep 26, 2005 12:40 pm
Post subject: 50% off Coupon Code for Restaurants Great site Curtis, Can you use discount code more than once? If restaurant says 35.00 minimum, how is that calculated after discount? We were trying to find rules and details but didn't see any. Thanks
Board Monitor
Board Monitor/ Administrator
Posted: Tue Sep 27, 2005 10:10 am
Post subject: 50% off Coupon Code for Restaurants It's a wonderful site- my wife and I have used it for years. A word of caution- call the restaurant before you buy a particular gift cert to make sure they still honor it. Typically you buy a $25 gift cert for 10 bucks, but with the 50% discount code you get it for only 5 bucks! The only catch is that you often have to buy at least $35 in food. They offers vary- read each offer carefully. All in all, though, a great way to make a big dent in your restaurant bills (if you eat out a lot like us)... _________________ Best Regards, Curtis Arnold Board Monitor http:// www.cardratings.com (501) 663-0314
Author: Polonius
Posted: Tue Sep 27, 2005 3:50 pm
Post subject: 50% off Coupon Code for Restaurants Check http://www.dealcoupon.com/ It's just a news source, listing discount coupons available, organized in many ways including by store. And, Curtis, it lists a 60% off discount coupon for restaurant.com--code is 39109. Valid until 9/30. The same group runs dealnews.com, dealcam.com, dealram.com and dealmac.com. I've saved thousands with its listings--and probably spent thousands I wouldn't have spent if I hadn't seen the bargains to begin with. I bought a Maxtor DiamondMax 200GB IDE Hard Drive, model no. L01P200, for $69.99 shipped from Fry's Outpost.com yesterday because of that site! Author: Board Monitor
Board Monitor/ Administrator
Posted: Wed Sep 28, 2005 8:20 am
Post subject: 50% off Coupon Code for Restaurants Neat site! I have seen them before, but will have to spend more time checking them out. _________________ Best Regards, Curtis Arnold Board Monitor http:// www.cardratings.com (501) 663-0314
Looking to Invest in Stocks and CD's
moneymoneymoney
Posted: Sun Nov 14, 2004 5:18 pm
Post subject: Looking to Invest in Stocks and CD's Hi everyone Here's my situation. I'm a college student who has a limited amount of money to use for investing. I'm sick of the normal savings accounts which have very little interest rates. I'm looking into distributing a portion of my money in stocks and in an investment CD. I know more about stocks then I know about CDs so my questions will be focused on the CDs. First of all, it seems CDs are much better in terms of APR and APY compared to normal savings account, but what I don't see on the bank websites are the fees for these accounts. Can experienced members please tell me what fees there are for opening, maintaining, and eventually collecting the funds (i.e., bank fees, types of taxes)? Are there any tax free or student types of benefits? Any suggestions, tips, and links would be greatly appreciated. Also, if you have any good tips on stocks it would be another plus.
Author: Ira
Posted: Sun Nov 14, 2004 9:30 pm
Post subject: Looking to Invest in Stocks and CD's Zero. No fees for opening a CD. If you have any doubts, why not simply ask the bank or credit union or other entity where you want to open a CD.
Author: mrpuddles
Posted: Sun Mar 20, 2005 5:53 pm
Post subject: Looking to Invest in Stocks and CD's You just earn the stated rate of interest that a bank specifies. They do not *directly* charge you for opening a CD w/ you. However, you can get nailed with penalties if you close out a CD before it matures (if the contract allows). For instance, you could open an ING 1-year CD for 3% w/ no limit. You earn 3% and in a year you will be able to collect your principle (original deposit) and interest. If you request the money in your CD prior to a year, I believe that take approximately half of the interest earned on a CD. The bad part about CDs is that they are not liquid and could be difficult to recover if you need them for an emergency. However, CD's are great if you don't depend on them for emergencies and ladder your accounts to maximize your interest (ie a 5-year CD maturing each year). Personally, the CD market is kind of slow right now... I would suggest keeping money in stock mutual funds like an index. Once the fed stops increasing the interest rate, I would probably put 30% of your savings in a bond mutual fund. Make sure to diversify.
Author: savesonline
Posted: Tue Apr 26, 2005 2:52 pm
Post subject: Looking to Invest in Stocks and CD's actually ING's Orange Saving Account offer 3.0 APR now, it's fairly easy to move money around in serveral days. have a look at ingdirect.com
Author: usmsci
Posted: Tue Sep 27, 2005 11:13 am
Post subject: Looking to Invest in Stocks and CD's CD's, Savings Accounts and Money Markets from what i have seen really dont give you much. You are lucky these days to get anything above 1.0% on savings account..right now i have 0.5% and no balance in it.. i think maybe $0.65. haha As for CD's and money markets even if you sign up for a long term investment with the bank and put in lots of money you are not going to do much better than 4-5%. id suggest open up an IRA or Roth IRA or take advantage of a 401K plan your employer might offer..
Shopping for Cheaper Car Insurance
Author: astounding
Posted: Tue Sep 20, 2005 9:34 pm
Post subject: Shopping for Cheaper Car Insurance Hello guys, Here's an article on nine ways you can lower your auto insurance costs... You may not realize it, but the insurance rates you pay for your car can vary dramatically depending on the insurance company, agent or broker you choose, the coverages you request and the kind of car you drive. Listed below are a number of things you can do right now to lower your insurance costs. 1. COMPARISON SHOP. Prices for the same coverage can vary by hundreds of dollars, so it pays to shop around. Ask your friends, check the yellow pages or call your state insurance department (phone numbers are on back page). You can also check consumer guides, insurance agents or companies. This will give you an idea of price ranges and tell you which companies or agents have the lowest prices. But don't shop price alone. The insurer you select should offer both fair prices and excellent service. Quality personal service may cost a bit more, but provides added conveniences, so talk to a number of insurers to get a feeling for the quality of their service. Ask them what they would do to lower your costs. Check the financial ratings of the companies too. Then, when you've narrowed the field to three insurers, get price quotes. 2. ASK FOR HIGHER DEDUCTIBLES. Deductibles represent the amount of money you pay before you make a claim. By requesting higher deductibles on collision and comprehensive (fire and theft) coverage, you can lower your costs substantially. For example, increasing your deductible from $200 to $500 could reduce your collision cost by 15% to 30%. 3. DROP COLLISION AND/OR COMPREHENSIVE COVERAGES ON OLDER CARS. It may not be cost-effective to have collision or comprehensive coverages on cars worth less than $1000 because any claim you make would not substantially exceed annual cost and deductible amounts. Auto dealers and banks can tell you the worth of cars. 4. ELIMINATE DUPLICATE MEDICAL COVERAGES. If you have adequate health insurance, you may be paying for duplicate medical coverage in your auto policy. In some states, eliminating this coverage could lower your personal injury protection (PIP) cost by up to 40%. 5. BUY A "LOW PROFILE" CAR. Before you buy a new or used car, check into insurance costs. Cars that are expensive to repair, or that are favorite targets for thieves, have much higher insurance costs. Write to the Insurance Institute for Highway Safety, 1005 North Glebe Road, Arlington, VA 22201 and ask for the Highway Loss Data Chart. 6. CONSIDER AREA INSURANCE COST IF YOU ARE MAKING A MOVE. Costs tend to be lowest in rural communities and highest in center cities where there is more traffic congestion. 7. TAKE ADVANTAGE Of LOW MILEAGE DISCOUNTS. Some companies offer discounts to motorists who drive fewer than a predetermined number of miles a year. 8. FIND OUT ABOUT AUTOMATIC SEAT BELT OR AIR BAG DISCOUNTS. You may be able to take advantage of discounts on some coverages if you have automatic seat belts and/or air bags. 9. INQUIRE ABOUT OTHER DISCOUNTS. Some insurers offer discounts for more than one car, no accidents in three years, drivers over 50 years of age, driver training courses, anti-theft devices, anti-lock brakes and good grades for students. See the following page for a guide to these and other discounts. INQUIRE ABOUT DISCOUNTS FOR: Code: COMPANY A COMPANY B COMPANY C $500 deductible _______ _______ _______ $1,000 deductible _______ _______ _______ More than 1 car _______ _______ _______ No Accidents in 3 Years _______ _______ _______ No Moving Violations in 3 Years _______ _______ _______ Drivers Over 50 Years of Age _______ _______ _______ Driver Training Course _______ _______ _______ Anti-Theft Device _______ _______ _______ Low Annual Mileage _______ _______ _______ Automatic Seat Belt _______ _______ _______ Air Bag _______ _______ _______ Anti-Lock Brakes _______ _______ _______ Good Grades for Students _______ _______ _______ Auto and Homeowners Coverage with the Same Company _______ _______ _______ College Students Away From Home Without a Car _______ _______ _______ OTHER DISCOUNTS: _______________ _______ _______ _______ _______________ _______ _______ _______ _______________ _______ _______ _______ _______________ _______ _______ _______ YOU CAN REACH YOUR STATE INSURANCE DEPARTMENT AT: AL: 205-269-3550 AK: 907-465-2515 AS: 684-633-4116 AZ: 602-255-5400 AR: 501-686-2900 CA: 800-927-4357 CO: 303-894-7499 CT: 203-297-3800 DE: 800-282-8611 DC: 202-727-8002 FL: 800-342-2762 GA: 404-656-2056 GU: 671-477-5144 HI: 800-468-4644 ID: 208-334-2250 IL: 217-782-4515 IN: 800-622-4461 IA: 515-281-5705 KS: 800-432-2484 KY: 502-564-3630 LA: 504-342-5900 ME: 207-582-8707 MD: 800-492-6116 MA: 617-727-3357 MI: 517-373-9273 MN: 800-652-9747 MS: 601-359-3569 MO: 314-751-2640 MT: 800-332-6148 NE: 402-471-2201 NV: 800-992-0900 NH: 800-852-3416 NJ: 609-292-5363 NM: 505-827-4500 NY: 212-602-0203 NC: 800-662-7777 ND: 800-247-0560 OH: 800-686-1526 OK: 405-521-2828 OR: 503-378-4271 PA: 717-787-5173 PR: 809-722-8686 RI: 401-277-2223 SC: 803-737-6117 SD: 605-773-3563 TN: 800-342-4029 TX: 512-463-6464 UT: 801-530-6400 VT: 802-828-3301 VI: 809-774-2991 VA: 800-552-7945 WA: 800-562-6900 WV: 800-642-9004 WI: 800-236-8517 WY: 307-777-7401 FOR MORE INFORMATION, CALL THE NATIONAL INSURANCE CONSUMER HELPLINE (NICH) AT 1-800-942-4242 -Andre Author: usmsci
Posted: Tue Sep 27, 2005 10:44 am
Post subject: Shopping for Cheaper Car Insurance i would raise my deductibles , both comp and coll. from $100 to possibly $500 but my front windshield cost about $1,800 to replace if its damaged or a rock breaks it or whatever. i cant afford to fork upo $500 or $1000 on a windshield..thats crazy. id rather just pay $20 more a month to insure it with a $100 deductible
Should I Purchase a For Sale By Owner property?
diddlydudette
Posted: Mon Jul 18, 2005 10:45 am
Post subject: Should I Purchase a For Sale By Owner property? Ok, I'm 46 years old and I'll be a first time home buyer. I have good credit Equifax 807, Transunion I think is 853. I won't be able to consider applying for until December when my lease is up in apt. She'll be about ready to move about that same time. I have a friend who's house I'd like to purchase. She is getting married. The house is in great shape...great lanscaping, well maintained, etc. She is not dealing with a realtor. She said initially she would sell for 120,000 and I cringed and told her I thought I couldn't afford that. She then cringed back and said least she could sell for is 114,000. I can afford and really like the house and everyone who has seen pics of it thinks I'd be getting a good deal. We really hadn't talked much about it. She cuts my hair and isn't a very close friend. I've just been going to her forever..5 years. She did say when I went to look at it that we'd both pay our own closing costs. Since I'm new to this and no realtor of my own, she wanted to work out the details of a contract. She said that's how she bought it. She and owner had dinner out and hashed everything out and it worked great. Of course I'd get it inspected and have a closing attorney. Any great words of wisdom for me? What do I need to watch out for?
Author: Polonius
Posted: Mon Jul 18, 2005 1:39 pm
Post subject: Should I Purchase a For Sale By Owner property? You can get a good deal--but there are so many risks and you're so inexperienced I'd advise against handling it the way you're planning. How can you determine a price without a careful comparative market analysis, which most realtors will give for free? (Traditionally, you get 3 CMAs if you're the seller.) What about title insurance? Given this scenario, as a buyer I'd hire a licensed realtor to be MY agent--to arrange for the building inspection, title search/insurance, and closing documents. And I would pay for an independent appraisal of the property.
Author: Sarasotatony
Posted: Tue Jul 19, 2005 7:34 pm
Post subject: Getting Ready to Buy My First House Polonius is 100% correct. As a first-time buyer, you need to realize that buying a home can be a complicated process. If she won't deal with a realtor, then you must hire an attorney who specializes in real estate. It should cost you $400-$500, for the attorney to put together the closing documents. You must also hire an appraiser (around $200) who will give you a certified appraisal of the property. This is different from a realtor's comparative market analysis. If you end up agreeing to pay more for the property than it is worth, than the bank won't go along with it. Regarding closing costs: they are often negotiated with the seller--often the seller will pay up to 2% of your closing costs. Your closing costs will run $5,000 to $6,000. This is separate from the 20% down you need to pay at closing. Remember, if you put less than 20% down, than you will have to pay PMI (private mortgage insurance). This should be around $75 a month. Try to avoid this ripoff. What are the costs of taxes and insurance? Make sure you close at the end of the month--never the beginning of the month. You also need to hire a home inspector, especially one that is A.S.H.I. certified. Look in your phone book. The cost is around $150. If the inspector finds anything that could be a costly problem down the road, then you have the right to ask the seller to pay for the repairs. If she will not, then you can walk away. A title search as well as title insurance is a must. This is part of your closing costs and your lender won't close without proof of a clear title. I suggest you check out www.bankrate.com--a very valuable web site. Type anything in the search box and you will get very valuable information. For example, type, how much home can I afford? and you will get a detailed analysis. Personally, I would never buy a home from someone I knew, in fact, when I sold real estate years ago I always kept buyers and sellers apart.
Author: Sarasotatony
Posted: Wed Jul 20, 2005 9:23 pm
Post subject: Getting Ready to Buy My First House Clarification on the 2%. It should read: In your offer, ask the seller to pay 2 points of your closing costs. This is roughly around $2,000. However, if you are in a seller's market, the seller will often reject this request.
Author: diddlydudette
Posted: Thu Jul 21, 2005 3:19 pm
Post subject: Should I Purchase a For Sale By Owner property? Thanks y'all. Yes, I was planning on getting an attorney for closing. I think she has pretty much stated that we each handle our own closing cost. She originally said 120,000 for asking, but after saying I couldn't afford, she said lowest was 114,000. The house will sell easily without a doubt because it's in great shape, etc. so I feel I can't ask her to help with closing. I do understand about inspection and appraisal. I know what I can afford and know to walk away if it gets to be too much money. Actually, my sister is a realtor in another town so she said she'd help do a comparison of houses in area and she'll look over contract for me. I'm not paying PMI at all. Let's just say I refuse. I think my FICO is high enough not to have to. I did get a mortgage estimate at my bank and was told it was a pretty accurate estimate. I will comparison shop, but wanted to get an idea of my payments. They suggested the 80/15/5. She said when they pulled my credit report and got down to business that if score was good enough bank might even lower interest more. I have 853 at Transunion, 807 at Equifax and something like 785 at Experian. It was like 80% at 5.35, 15% at 8% and 5% down....paying NO PMI. I gave her location of house and she calculated insurance and taxes, etc and came up with 757.00 a month as mortgage for 114,000. I'm thinking I may even be able to do better than their quote. I just hope the interest doesn't go up much between now and the end of the year. I have 20,000 in my savings acct. and that's about it except maybe a couple thousand in stock. I wouldn't touch any 401K or anything like that. I'm not one to want to buy beyond my means or get over my head. It just seems if I were to pay 5% or more down and 6,000 in closing that it will take all my money. It's very scary to think I have to drain savings to buy my first home. Y'all think it's a good idea and think I can afford? I make about 38,000 + a year. Should I stay in apt. where I can budget and not have to worry about things breaking....extra costs and getting broke. Sometimes I get so scared about thinking about all the money upfront and how confused I am, that I just want to forget about it.
Author: Sarasotatony
Posted: Thu Jul 28, 2005 1:38 am
Post subject: Getting Ready to Buy My First House I know it can appear overwhelming, but you will never get anywhere renting. Try and see if you can qualify for 5% or 10% down, because you will be surprised at some of your costs after you move in. Appliances/window coverings are just a few. I certainly agree with you about PMI--avoid it if you can. Once approved, ask your lender how many days you can "lock in" your rate. Most lenders will give you a 30 day lock; a few will lock for 60 days. Some will lock you in for 60 if you pay a fee. Remember: That attorney you choose must be a specialist in real estate, he/she shouldn't be a standard attorney. Another suggestion: Go to www.bankrate.com and type in closing costs or junk fees in the search box. Some fees are negotiable with the lender. Some are tax-deductable. Closing fees can vary by a $1,000 to $2,000, depending on the lender. And: Close at the closest business day to the end of the month.
Author: jbrinson
Posted: Wed Sep 21, 2005 10:04 am
Post subject: 80/20 Loans no down payment or MI I work at a mortgage company and we have 80/20 loans with no down payment at great rates, in which you can keep your 5%. Buying is always better with the tax advantage AND if you take an average appreciation of 8% a year on a house of 114k...considering it sounds like you are actually gaining additional equity immediately, in 5 years your house may be worth about 165k or more! Feel free to email me if you want more info on the 80/20 loans!! Jen
Author: BestMortgageInfo
Posted: Thu Sep 22, 2005 7:56 am
Post subject: Should I Purchase a For Sale By Owner property? Few comments on home value Be careful here. Things to look for is to make sure that the properties that the appraiser is comparing (Comps) are 1) with in a mile of the home, and that the ages are close to this home 2) that the sizes of the homes, sales prices of the homes, number of rooms of the homes, are all "bracketed" meaning some lower some higher. 3) That the comps are fairly new, 3 months is best, 6 months normal.
Board Monitor
Board Monitor/ Administrator
Posted: Thu Sep 22, 2005 9:05 am
Post subject: Should I Purchase a For Sale By Owner property? Charles, Good tips on comps! What is the reasoning behind seeeking bracketed comps? Never heard of this. _________________ Best Regards, Curtis Arnold Board Monitor http:// www.cardratings.com (501) 663-0314
Author: BestMortgageInfo
Posted: Thu Sep 22, 2005 9:23 am
Post subject: Should I Purchase a For Sale By Owner property? Well, I found out years ago, terrible experience, that appraisers can sometimes "give what someone wants". As long as it is not undergoing a review (lender or Loan officer or someone that knows what to look for) then they can come up with what ever value requested. So, Bracketed is important: Either one lower/smaller and the others higher/larger or the other way around. You want the home being appraised to be in the middle. THere is a lot to reviewing appraisals. I forgot to include the GLA (Gross Living Area) factor. Should not be more than 20% difference. It is difficult to compare a home that is 1200 SQFT with a home that is 1800 SQFT. So difficult that lenders wont accept an appraisal like that.
Non-Conforming Or Sub-Prime Loans
Author: nixuzer
Posted: Fri Sep 16, 2005 5:06 pm
Post subject: Non-Conforming Or Sub-Prime Loans Since I'm a little under educated about loan types can someone please explain what non-conforming conventional loans are? Also, if they could provide some research links that would also be appreciated. Thanks.
Author: BestMortgageInfo
Posted: Fri Sep 16, 2005 9:36 pm
Post subject: Non-Conforming Or Sub-Prime Loans The residential mortgage world is divided up several ways. First there are Government loans: FHA/VA/etc. Then there are the rest of the loan types, called conventional. You further divide the conventional: Conforming: "Fits the box" of Fannie Mae and Freddie Mac. Rules say 39% DTI (Debt to Income ratio), 95% LTV (Amount of the value of the home you can borrow) 2 months of PITI (Principal-Interest-Taxes-Insurance) in assets, that have been there 60+ days. The down payment has to be in the account for 60+ days, etc. Must escrow/impound the Taxes and Insurance. Great Rates, no Prepayment penalty Non-Conforming: The other parts of Conventional loans. 1) Most people call Sub-prime. 50% DTI (can even go to 55%), 100+ (or more) LTV, No assets, No escrow required. Down payment can be seasoned (in the account) for an hour. High rates. In theory should be temporary loans, just to get the new home buyer to the point that they can qualify for conventional loans. 2) Alt-A or A-, Sort of 1/2 way inbetween subprime and conforming. The lines are getting blured anymore however. There are times when a person with good credit goes with a sub-prime or an Alt A loan, because they have limited proof of self employment, or not great job history etc.
Author: nixuzer
Posted: Fri Sep 16, 2005 10:34 pm
Post subject: Non-Conforming Or Sub-Prime Loans Well BestMortgageInfo I did get this from your website so I appreciate your response. Good information but since I love to learn, If you could assist me with a couple more questions since you do this for your career it would be appreciated. 1. A loan where someone does manual underwriting, if I recall the term correctly, because someone has a low credit score (due to no debt/credit) but has a decent income would be considered a non-conforming loan? 2. Lets say we have two people that have the exact same income and are looking at the same house with the same FICO score. Would someone with a bad payment history/bankruptcy have the same interest rate and closing costs/processing fees vs someone with a low score due to no debt and a non-existent or sparse credit history? If the either person has a lot more assets (retirement, cash, etc) would that make a difference on their interest rate? Thanks for your time on this.
Author: BestMortgageInfo
Posted: Sat Sep 17, 2005 7:50 am
Post subject: Non-Conforming Or Sub-Prime Loans 1. A loan where someone does manual underwriting, if I recall the term correctly, because someone has a low credit score (due to no debt/credit) but has a decent income would be considered a non-conforming loan? To answer your question on terms. Yes, there is automated and manual underwriting. Sometimes if a loan almost fits some lenders have a manual UW available. Rare, because as said before, conforming needs to fit the box. Part of that box is using the automated underwriting systems. If your score is under 620, then you are for sure Non-Conforming. If over 620, and the lender can do a manual UW, then you can be approved, but at a higher rate than one approved with the automated approval. 2. Lets say we have two people that have the exact same income and are looking at the same house with the same FICO score. Would someone with a bad payment history/bankruptcy have the same interest rate and closing costs/processing fees vs someone with a low score due to no debt and a non-existent or sparse credit history? If the either person has a lot more assets (retirement, cash, etc) would that make a difference on their interest rate? The first one would have the highest rates. If there are credit scores on the second one, they would get into a conforming loan. If the 2nd has no scores, then it is a sub-prime loan. If #2 has 3 or more open accounts with companies that don't report (Utility co, Cell phone, monthly car insurance, etc) then a loan can be done. Otherwise better to be in #1's position. Generally the rates would be about the same, but if #1 has a BK that is less than 3 years old, or 30 day late in the past year on a rent or home payment, then #1 will have the higher rate.
I Have Bad Credit, Can i buy a house?
Author: kemmyj
Posted: Fri Sep 09, 2005 4:50 pm
Post subject: I Have Bad Credit, Can i buy a house? my boyfriend and i are looking into buying our first home. we are renting now and the lease will expire in August of 2006. The problem is, we have bad credit. My credit is from debt that i incurred as a young stupid undergrad and have not paid off. The statue of limitations is almost up on most of the debt (I am 26 and he is 27). I have about $5000 in bad credit card debt. My score is about 569. I just bought a new car for the first time and have been making my payments of time. He has no bad debt, but has some late payments on his car note. The main problem is we know NOTHING about the home buying process and are scared to pursuit it because of the debt. What should be the first step for us? Who should we go see first to see what we can do to qualify for a loan? Is it the mortgage lender, a realtor, a counselor, or whom? I am not opposed to waiting another 2 years if it will save us a lot of interest. We just need to know who to turn to first to start the process. Thank you."
Author: tb33
Posted: Sat Sep 10, 2005 4:23 pm
Post subject: I Have Bad Credit, Can i buy a house? Good qustion! I'm look for the exact order of the home buying process myself. Author: Ira
Posted: Sat Sep 10, 2005 11:21 pm
Post subject: I Have Bad Credit, Can i buy a house? he first thing you should do is discuss your situation with a professional realtor. They've seen it all, many times over, and can advise you how to proceed. Remember, it is in their best interest to see you succeed. If you can't get financing, they can't earn a commission. Ira
Author: polonius
Posted: Sun Sep 11, 2005 10:22 am
Post subject: I Have Bad Credit, Can i buy a house? And the next question is to decide the legal status of that home you're buying. I assume you're not planning to get married before the home purchase. What if you break up with him? Who owns the house? Who has to make the mortgage payments? If he doesn't pay, you'll have to, right? Time to get all these issues straightened out is before you buy the house. And do it all in writing, with an attorney and witnesses.
Author: Todd w/mydenverlender
Posted: Mon Sep 12, 2005 3:56 pm
Post subject: Bad credit help This website may be helpful to to you. I have no obligation to them, they are in my city (Denver) but could help you with a lot of the issues you have. www.veracitycredit.com The Federal Fair Credit Reporting Act states that when a consumer disputes any information contained in his credit file, the credit bureau must verify the accuracy of such information with the creditor that reported the information within 30 days. If the credit bureau is unable to verify the information within 30 days, or the information is not 100% correct, it must be removed. Taking advantage of this law is easy. Many creditors do not have the staff, or proper records, to verify this information within 30 days. Even when the negative information is correct, if the creditor misses the deadline, the credit bureau MUST remove the information. The laws are in your favor! Some items are easier to remove than others. Research indicates that older items are much easier to dispute and remove. Creditors are less concerned with old accounts that they have charged off or retired. Thus, they are less likely to spend the time and money to verify them. Usually, they will no longer even have access to your information, as it is probably filed away in some warehouse. Accounts that were once past due, but are now completely paid off are also easier. Since the creditor has been paid, they are less concerned with verifying. Difficult items are those that are currently in collection or currently past due. These items will be in the creditor's active files and easy for them to find. Not only is it easier for them to verify, the want to verify because they are still trying to get paid. Although it's always worth a try, we will avoid these items in our first round of disputes. If you have any questions or would like information like what is presented here, please contact me via e-mail at todd.gehrke@ctxmort.com
Author: tb33
Posted: Mon Sep 12, 2005 6:21 pm
Post subject: I Have Bad Credit, Can i buy a house? Thanks Todd. Great Advice!
Author: nixuzer
Posted: Mon Sep 12, 2005 11:16 pm
Post subject: Re: First Time Home Buyer kemmyj wrote:
..snip..
My credit is from debt that i incurred as a young stupid undergrad and have not paid off. The statue of limitations is almost up on most of the debt (I am 26 and he is 27). I have about $5000 in bad credit card debt. My score is about 569. I just bought a new car for the first time and have been making my payments of time. He has no bad debt, but has some late payments on his car note. The main problem is we know NOTHING about the home buying process and are scared to pursuit it because of the debt. What should be the first step for us? Who should we go see first to see what we can do to qualify for a loan? Is it the mortgage lender, a realtor, a counselor, or whom? I am not opposed to waiting another 2 years if it will save us a lot of interest. We just need to know who to turn to first to start the process. Thank you." You don't state what % of your income goes to housing (a solution if you don't feel comfortable giving away your income figured) and what your overall debt situation is. Polonius brings up a good point about what if things don't work out and who the responsibility will go to. Also, you mentioned he had a couple of late payments, if those are due to financial stress then I'd encourage you two to work that out before you proceed with purchasing a house...your expenses usually go up. You'll want to do work on the house, etc, etc. As Ira mentioned make sure to see a professional and if you get any bad feeling or bad vibes walk away and seek someone else.
Author: kemmyj
Posted: Thu Sep 15, 2005 4:42 pm
Post subject: I Have Bad Credit, Can i buy a house? I guess I should have been more clear. My boyfriend and I are getting married before we buy the house. We have been together for 12 years so this is not some average joe. thanks so much for the help.
Author: BestMortgageInfo
Posted: Fri Sep 16, 2005 4:14 pm
Post subject: I Have Bad Credit, Can i buy a house? To reply to the first post. Most realtors will not want to take any time with you unless you are qualified or approved for a loan. So, maybe talk with a realtor and ask them to direct you to a lender or loan officer that can help you. With scores under 580 (from MyFico or from a mortgage person) most LO's don't know what to do or where to go, but you can find someone if you look and make a lot of calls, there are wholesale lenders that have 560+ programs for 100%, and some that have 95% programs for 545 and up. So, it is possible now, but if you can at least get to the 580 mark, you will be better off. One of the bad things in a way about the sub-prime market is that they will let you sort of over extend yourself, by approving a 50% DTI (debt to income ratio) loan. With rates rising, I would suggest that you either stay in the 45% or less, and/or pay the extra fee and get a 30 year fixed. Charles
Is it Better to Buy a Used Car or a New Car
Author: damnage
Posted: Wed Jul 27, 2005 5:15 pm
Post subject: Is it better to buy a used car or a new car Hmm...cars. Such a necessary evil. I sold cars for over five years and worked in the F&I (Finance and Insurance, yes, I've seen thousands of people's CRs) department for two dealerships over two years. I swore I would never buy a new car. However, with the low finance rates offered by manufacturers today it has me thinking. It really has me thinking because I drive a mere 8K-10K per year. So when I look at a two year old car with 25K miles on it I'm seeing three years of use already on the car. In crunching the numbers on some vehicles I've been considering new versus used and it comes out to mere $25-$30 per month difference per month on similar terms. It's that close due to about a 3-4 percentage point difference in new versus used loan rates. So...a two year old car with one year of warranty and three years worth of mileage (for my average driving habits) or a brand new car with three years of warranty and under 100 miles. It gets interesting. I would have to agree with Suze though that new cars, heck almost any car, is a bad investment. I mean is it fair to call it an investment? I always hated to use that term with customers. Just my .02
Author: PFFrank
Posted: Thu Jul 28, 2005 1:29 pm
Post subject: Suze Orman's on Used Cars damnage wrote:
I would have to agree with Suze though that new cars, heck almost any car, is a bad investment. I mean is it fair to call it an investment? I always hated to use that term with customers. "Car" and "Investment" should never be used in the same sentence (unless of course you're a collector of classic cars ) I always like to call them "depreciating liabilities" to really hammer home their proper place in my personal net worth statement.
Author: maddybeagle
Posted: Fri Jul 29, 2005 6:34 pm
Post subject: Suze Orman's on Used Cars yeah, suze said that and got me thinking and I think she actually has something going there and capital gains and dividend taxes are currently LOWER than ordinary income taxes. If that continues (as I think it will), 401ks will still have their place, but maxing them out may not be the smart more for everyone. I dont like her GM commericals, kinda selling out>
Board Monitor
Posted: Sat Jul 30, 2005 5:32 pm
Post subject: Suze Orman's on Used Cars I found the GM commercials to be interesting. Although I don't condemn her for doing them, I bet she probably regrets it considering all of the negative publicity that she has gotten. _________________ Best Regards, Curtis Arnold Board Monitor http:// www.cardratings.com (501) 663-0314
Using a Home Equity Loan to Pay Down Credit Card Debt
Author: Polonius
Posted: Sat Jul 23, 2005 6:20 pm
Post subject: Using a home equity loan to pay down credit card debt She's written a number of books. I think she means well and she's certainly knowledgeable, but some ofher suggestions make very little sense to me. For example, she's adamantly against using a home equity line of credit to reduce credit card debt. Her notion is that you're risking losing your home by converting an unsecured debt to a secured debt. My notion is that it will reduce the interest you pay on your debt substantially and has tax advantages as well, so the advantages far outweigh the disadvantages providing, of course, you don't use the HELOC as an excuse to get even deeper into debt. That said, I think her books are worth reading. Just don't follow what she says blindly.
Author: PFfrank
Posted: Mon Jul 25, 2005 7:50 pm
Post subject: Suze Orman I've read quite a few of her books, and I have to say this is by far her best (The Money Book for the Young, Fabulous, and Broke). I read many books on pf, and this is one of the best I've come across. It's full of a lot of little details...I find myself using it like a "reference book" if I have questions. If you haven't picked it up yet, I'd highly recommend it.
Polonius wrote:
For example, she's adamantly against using a home equity line of credit to reduce credit card debt. Her notion is that you're risking losing your home by converting an unsecured debt to a secured debt. My notion is that it will reduce the interest you pay on your debt substantially and has tax advantages as well, so the advantages far outweigh the disadvantages providing, of course, you don't use the HELOC as an excuse to get even deeper into debt. I'd have to say, I agree with Suze on this point. I completely understand your reasoning, Polonius, and it makes complete sense. But, you have to think about the person who has gotten themself into credit card debt so bad that they need to use a HELOC to pay it off. Those who have run up 10, 15, and 20-thousand in credit card debt are for the most part living beyond their means (I'm not talking about those that have medical issue, hard-luck circumstances, etc.). I truly feel that the best way to never again get into credit card debt is to feel the pain of paying that money back. I like to think of it as part of the "therapy" on their way to recovery . For someone who has overspent enough to get into trouble, suddenly turning that unsecured debt into a loan on their house is VERY dangerous. More often than not, those same people will find themselves back in credit card debt. Remember, if one defaults on their CC debt, they get a bad FICO score...if one defaults on their home loan, the lose the house they live in.
Author: polonious
Posted: Mon Jul 25, 2005 8:50 pm
Post subject: Suze Orman Well, failing to repay a credit card debt can produce a judgment which in turn produces a lien on your house and/or car and/or garnishment of your salary anyway, in most states. Unsecured debt can turn easily into secured debt in this way. If you're in credit card debt and want to get out, reducing the interest you pay is the first step in my opinion--and a HELOC is a fine way to do that. Do I agree that those who abuse credit will continue to abuse it? Sure--most likely--but they'll get a HELOC and use it for a luxury car or an expensive vacation rather than use it to pay off other debts. It's sort of irrelevant what those people will do; they'll wind up homeless and in bankruptcy anyway if they are in a hole because of immaturity and frivolous spending. Orman said something recently that I'm still pondering. She basically said it is a mistake to keep pouring money into a 401(k) or similar retirement fund (if there's no employer contribution). Her point is that it's better to put the funds into a regular investment account, forego the tax deductions today, and just handle the account properly from now on. She says that taxes today are extremely low, and that by acting this way you can still take advantage of reduced capital gains taxes. If you take out the money in your retirement instead, it will all be taxed at the usual income tax rates--and those might be much higher in your retirement years than they are today. Interesting, eh?
Author: rain Posted: Mon Jul 25, 2005 11:47 pm Post subject: Suze Orman Quote:
Orman said something recently that I'm still pondering. She basically said it is a mistake to keep pouring money into a 401(k) or similar retirement fund (if there's no employer contribution). Her point is that it's better to put the funds into a regular investment account, forego the tax deductions today, and just handle the account properly from now on. She says that taxes today are extremely low, and that by acting this way you can still take advantage of reduced capital gains taxes. If you take out the money in your retirement instead, it will all be taxed at the usual income tax rates--and those might be much higher in your retirement years than they are today. Interesting, eh Unless the regular investment a/c is a roth-IRA, you will still be taxed again when you withdraw this money in the years to come, albeit at the capital gains tax rate. So you're hit once now, with your regular income tax rate, and once later, with the cap gain tax. If you defer taxation by putting your money in 401K or SEP, you'll be taxed at regular income taxes later. So what you have to compare are a) income tax now + opportunity cost (ie, after cap gains tax potential returns) + cap gain tax versus b) income taxes later Therefore I don't think her statement "act this way to take advantage of reduced cap gains tax" is accurate. She's really comparing the wrong things. Wasn't she advertising some cars late last year/early this year? I think I remember her saying authoritatively that cars are a good investment. That statement alone would cause me to lump her into the category of generic personal finance adviser who has sold out. Its just difficult to trust someone again once that element of doubt is induced. Of course, her ads and her books serve different purposes, and you might argue that she was merely doing what anyone would do, sort of like a 3 michelin star chef promoting cusinenet or something. But what if it was a lifelong advocate for healthy eating (can't think of any right now!) suddenly promoting xyz diet pills?
Author: Polonius
Posted: Tue Jul 26, 2005 10:25 am
Post subject: suze orman I was just paraphrasing Orman, so don't assume what I said was accurate. Her main point was that income taxes today are unnaturally low and that's unlikely to last. The assumption is always that in your retirement your income taxes will be lower than they are today because of reduced income that puts you in a lower tax bracket. But that may NOT be a good assumption these days. The withdrawals from your tax-deferred retirement accounts are always at your ordinary income rates. Capital gains rates are very likely to always be less than those rates, so I think she has a point. I know that as a self-employed person I can put large amounts into my 401(k) and reduce my apparent taxable income today easily--but that has its downside: banks look at the bottom line I report as business income, conclude I'm making virtually no income, and tell me I don't qualify for a mortgage or credit card because I make too little. That number I report is also used for future Social Security calculations. I'll have to do the math fairly carefully, but my guess is that for my situation I'd be better off NOT socking my money away tax-deferred but reporting it, paying taxes on it now, and doing what she says... As for the car buying business, yes--Orman shilled for purchasing NEW GM cars last year, even though her books recommend people buy USED cars (uh, sorry, they're no longer used cars--they're certified pre-owned vehicles...I keep making that mistake). For some comments on that, see http://www.mdmproofing.com/iym/articles/2004-11-20.html and http://www.mdmproofing.com/iym/articles/2005-02-15.html
Tips for Living Frugally in Collge
Author:barbarac
Posted: Fri Jun 03, 2005 11:18 am
Post subject: tips on living frugally needed anyone have any tips on living frugally? Being in college is tough on expenses. I tried to save as much as I could before coming to school but books were so expensive as well as wanting to eat out with friends. Do I have to give up having fun to be able to live an affordable life?
Author: Ira
Posted: Fri Jun 03, 2005 3:22 pm
Post subject: Tips for Living Frugally in Collge Personally I'm amazed that anyone can afford a college education at a good school. Sorry but there are no magic bullets that I know of. You might try buying used books as much as possible. That could save as much as half. If you have a car, use it as little as possible. If you can get along without it and ride with your friends, that's more money in your pocket. Also, consider getting a part time job, or even switching to night school and get a full time job and earn while you learn. That's how I got my degree. Be creative, let nothing stand in your way, and you'll do fine. _________________ Do not let what you cannot do interfere with what you can do. Ira
Author: nixuzer
Posted: Mon Jun 06, 2005 10:07 am
Post subject: Re: tips on living frugally needed barbarac wrote:
anyone have any tips on living frugally? Being in college is tough on expenses. I tried to save as much as I could before coming to school but books were so expensive as well as wanting to eat out with friends. Do I have to give up having fun to be able to live an affordable life? Well the first thing I'd comment on is give up having fun as something that you might need to adjust your feelings on. The interesting part I found is that there are people I was hanging out with that were suffering from the same stresses and wanted to do something more cost effective but wouldn't speak up. Some would laugh when I recommended a cheaper alternative and others were interested in what I had to offer (although they wouldn't say it in the group sometimes but come to me later). Things like having some friends over and doing sandwiches and chips (everyone brings an item) while playing games was a much cheaper alternative and fun. We also tried to get people involved in finding activities that didn't cost anything but got us out, like riding bikes on a bike trail, etc. There are many websites about frugal living but I've offered a few below. Most are geared towards families but you'll be able to find tidbits that will help. The thing that my family has found is frugal living is like saving, at first it seemed painful but now we enjoy it. My 8 year old came to me this morning excited that she has saved up $21.## over the last month doing extra jobs around the house and for neighbors, this wasn't an overnight thing for her but she is definitely getting into a saving mindset. This is the other 50% of the money she earned (we require our children to save 40% of any money they bring in and give 10% to charity). Anyway, rambling over, here are the websites: http://www.frugalfamilynetwork.com/ http://www.stretcher.com/ http://www.homeeconomiser.com/ (they have an inexpensive newsletter that we recommmend for families. Being single, I'm guessing, your expenses are so low that you could probably save money many other ways without having to spend a cent on any newsletters, etc) The other item to keep in mind is network with other people about money saving things. It takes time to learn what is and is not a good price on daily staple items but over time you'll get there. Make sure you have a budget and live by it. You can make adjustments over time but a cash envelope system works really well. Statistically people spend significantly more using credit cards (for more information look at the following link and look for the bullet that starts with A typical credit card purchase ends up costing). It takes time but I'm sure you'll get it figured out and don't hesitate to ask for help along your journey. _________________ "Failure is not fatal. Only failure to get back up is." :: John C. Maxwell
Author: skittles0220
Posted: Tue Jun 28, 2005 12:57 pm
Post subject: Tips for Living Frugally in Collge Those are all great tips! As a professional student (yeah, I know, right ), I've been in this same situation. College is extremely overpriced - and when you add in all of the other necessities, it can be overwhelming. A few tips that have gotten me thru the years: -Used books online. Check out auction and retail bookstore sites for used copies even cheaper than your school's bookstore. And sell back your books to these same websites. The school bookstore likes to be cheap as frequent as possible. -Buy groceries in bulk. A membership to a club like Sam's/Costco will be more beneficial in the long run. And avoid eating out all the time. That adds up very quickly. Most importantly, be well aware of your finances. DO YOUR RESEARCH. Look at your credit report and keep an eye on your statements. I've found http://www.studentfinancialguide.com to be my haven for information. I've learned so much in their articles. Good luck, study hard, it'll be worth it!! Jen
Author: alohacamille
Posted: Tue Jul 12, 2005 12:32 pm
Post subject: Tips for Living Frugally in Collge i'm glad i ran across this post! i was researching the net to try to find some financial info for students. it's really difficult being a college student these days. seems like tuition is always rising and the cost of living goes up with it. thanks for the link jen. i'm going to check out that site, www.studentfinancialguide.com website for more help. the tips from everyone were also useful. i def. agree about buying used textbooks. i use half and amazon... it's saved me so much money in the long run. camille _________________ "No matter how hard things may seem, the diamond of your soul is harder."
Author: rain
Posted: Wed Jul 13, 2005 4:14 pm
Post subject: Tips for Living Frugally in Collge I find being a semi-geek/nerd helps me save a lot of money. I have almost no "life" and spend my time online surfing credit forums. Eat when really hungry and there's nothing cool going on "online", and go out as seldom as possible, and then mostly to the parks in Chicago or maybe pay per entry for gym now and then.
Author: Alexis Rios
Posted: Mon Jul 18, 2005 1:50 pm
Post subject: Tips for Living Frugally in Collge my last three semesters of college , i lived very frugal . I didn't have any kind of grant , my only source was an alimony from my parents. So i lived basically with $275/month , half of these went to pay my apartment. Luckily i have a student loan , and one credit card , and made a frugal living in college. Author: montana004
Posted: Tue Aug 09, 2005 10:02 pm
Post subject: Tips for Living Frugally in Collge try to apply for scholarships, and student loans are also available (be careful with them, borrow only if you REALLY need) yep getting a part time job helps
Author: cricket
Posted: Fri Aug 19, 2005 10:46 pm
Post subject: Tips for Living Frugally in Collge 1) Learn to cook. If you can read, you can cook. Have friends over for a home-cooked meal - they can bring the beer (more savings) 2) Scope out happy hours with free food - I lived on free food and half-price drink specials several nights a week when I was in college. Depending on where you go to school, you may need to forgo the "college" bars for "working professional" bars. Dress accordingly. 3) Books are just a rip-off - No way around it. Author: nixuzer Posted: Mon Sep 12, 2005 11:00 pm Post subject: Tips for Living Frugally in Collge cricket wrote:
2) Scope out happy hours with free food - I lived on free food and half-price drink specials several nights a week when I was in college. Depending on where you go to school, you may need to forgo the "college" bars for "working professional" bars. Dress accordingly. Now this is an e-book waiting to happen, "How to get fat and 'relaxed' on the cheap!" _________________ "Failure is not fatal. Only failure to get back up is." :: John C. Maxwell Back to top Author: maddybeagle
Posted: Tue Sep 13, 2005 1:13 pm
Post subject: Tips for Living Frugally in Collge I found that there really is a lot of services (gyms), etc. that you can use. We also had a film club that was cheap per semester and you got to see movies every weekend. As if we had a lot of "free time" lol.
Author: sungod916
Posted: Tue Sep 13, 2005 9:34 pm
Post subject: Tips for Living Frugally in Collge I would like to add that buying a George Foreman grill would be a great idea. You can buy meat in bulk and cook it quickly with the grill.
ING Direct Orange Account
Author: Polonius
Posted: Thu Dec 02, 2004 11:33 pm
Post subject: Ing Direct Orange Account http://www.ingdirect.com/quicken5/ is a link to set up an Ing Direct savings account and get a $50 bonus deposited to your account. It's a promotion that's part of any purchase of Quicken 2005. You have to feed in a product number of a Quicken 2005 version on that page, such as 313737. (CompUSA lists the product numbers on its Web site for each Quicken product!) Here are some more details. Quote:
2.25% annual percentage yield in effect since 11/18/04 . This rate is variable and may change at any time.
$50 Bonus is only available for new accounts with a new customer as the primary account holder.
Limit one bonus per PN number. ING DIRECT Orange Savings Account.
$50 Bonus starts earning interest upon account opening, but is unavailable for withdrawal for 30 days. This is an online-only promotion.
This offer is only valid for purchasers of Quicken 2005 with valid PN numbers. Valid through 12/31/05. I have no association with IngBank in any way and get no commission if you go for this offer--I just thought it was a nice way to make a quick $50 that anyone reading this could take advantage of. I don't see any "gotchas" in the offer. Enjoy. _________________ Polonius "Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
Author: Ira
Posted: Fri Dec 03, 2004 10:20 am
Post subject: ING Direct Orange Account I've been using ING for several years and they are a pleasure to deal with. They have one of the best web sites I have ever seen. The web site is so good I have never had to call them. I have also been using Quicken since the DOS days and currently have 12 years of financial records stored there. The one caveat is that you cannot get the $50.00 if you already have an account with ING. I tried several times using different email addresses, but I believe they check the social security number against their records. All in all, Quicken & ING - a great combination. _________________ Do not let what you cannot do interfere with what you can do. Ira
Author: Polonius
Posted: Fri Dec 03, 2004 10:28 am
Post subject: ING Direct Orange Account Good to know, Ira. Why not open accounts in the names/SS#s of your spouse and kids (if any)? That's what I'm going to do. _________________ Polonius "Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
Author: Polonius
Posted: Thu Dec 09, 2004 10:50 am
Post subject: ING Direct Orange Account I can now confirm that the whole process went very smoothly. Although there was no mention of the $50 bonus in the sign-up process, when I confirmed my account (by reporting two small deposits Ing made TO my checking account), the $50 bonus was right there in my account balance. And you're right (as usual) Ira--the Ing site is wonderful. One think I especially like is that it's written in plain English. Even the usual legalese of the account terms is prefaced by a paragraph telling you what the legalese really means, written in English even I can understand without thinking too hard. _________________ Polonius "Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
Author: Ira
Posted: Thu Dec 16, 2004 11:38 pm
Post subject: ING Direct Orange Account Glad you liked the site, Polonius. And the 2.25% interest on savings accounts isn't too shabby these days either! _________________ Do not let what you cannot do interfere with what you can do. Ira
Author: hesiden
Posted: Tue Feb 15, 2005 11:57 am
Post subject: ING Direct Orange Account Emigrant Direct, looks very very similar to ING. No fees, no min. deposit. ACH to link to checking accouts, FDIC insured, etc. However the APY is 3.0% (not a teaser rate, guanteed to hold 3% or higher thru 2005). http://www.emigrant-direct.com
Author: MDurai
Posted: Mon Apr 25, 2005 2:42 am
Post subject: ING Direct Orange Account They are now giving 3.00%
Author: Ira
Posted: Mon Apr 25, 2005 2:32 pm
Post subject: ING Direct Orange Account Actually Immigrant is now paying 3.25%. ING is not far behind at 3%. Goodness, do we have an actual price war here?? _________________ Do not let what you cannot do interfere with what you can do. Ira
Author: DHK
Posted: Tue Apr 26, 2005 9:32 am
Post subject: ING Direct Orange Account Price war? Sure. Service war? Not even close. ING Rocks! Emigrant DECLINED me (a banker!) for one of their savings accounts and I still don't know WHY!
Author: Christyk
Posted: Tue Apr 26, 2005 2:42 pm
Post subject: ING Direct Orange Account Darn, I just signed up for the $25 bonus with new account, and then found this great forum. I'm gonig to open another under my husband's name once I can get his license info. Thanks so much for sharing!! Christy _________________ To accomplish great things we must not only act but also dream, not only plan but also believe. ~Anatole France
Author: Board Monitor
Board Monitor/ Administrator
Posted: Wed Apr 27, 2005 8:51 am
Post subject: ING Direct Orange Account Christyk, Greetings and welcome to the board! I checked out your blog and it looks pretty cool. Nice quote on your sig line as well. Out of curiosity, how did you find out about our website? _________________ Best Regards, Curtis Arnold Board Monitor http:// www.cardratings.com (501) 663-0314
Author: Christyk
Posted: Wed Apr 27, 2005 3:34 pm
Post subject: ING Direct Orange Account Hi, Curtis. And thanks for the welcome. Found you through search engines (congrats on good rank!) The keywords were something like "fixed transfer rate" +"credit cards". It lead me to the American Express Blue which I will probably be applying for. I dug around so much, I'll be sure to go through your link again in case your cookie was overridden. This is a nice change as far as most credit card sites are concerned (and I'm sure a good choice to have the bulletin board as far as SEO). Though I won't be around too often as I don't need more distractions, I'll check in occasionally. Christy _________________ To accomplish great things we must not only act but also dream, not only plan but also believe. ~Anatole France
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