Are You On Top of Your Banking?

I just posted to my other blog, A Circle of Women, a situation which happened to me regarding the bank I do business with.

Last year I had to deal with Identity Theft, which was a major problem. And, due to that, I watch over my accounts very closely. So, coming from someone who scrutinizies their accounts, finding not only one, but two errors my bank made, surprised me.

Read this post...there is a lesson here.

In This Volatile Market, Are You Staying Calm?

In today's turbulent economic situation, are you staying calm with regards to your retirement savings? One of the worst mistakes you should try to avoid is making panic driven decisions. These decisions are solely made due to your reaction to negative economic developments.

We are hearing the problems constantly in the news. They are real and one to be concerned about, but the market has always changed. The market and economy changes in cycles.

If you maintain a long term perspective concerning your 401 or other retirement account, you will continue to keep the benefits of the many years of planning and saving. It may be tempting to try and outperform the market by guessing which way they will go and then shifting your money between assets. Even experienced pros cannot guess or predict.

If you plan for long term, you can reduce your risk. Sticking to your plan no matter what the markets are doing over the short term is important to achieve your retirement saving goals. Getting the advice of a professional could help with investment strategy, goals, needs and your risk tolerance.

Stocks, bonds and cash all carry some risk, but at different levels. If the risk is greater, the potential for a greater return is there. Do not carry a great risk if you cannot comfortably tolerate it. Considering the fact that stocks, bonds and cash can go up and down with returns and have different levels of risk, you might be more comfortable having a mix of all three. Find the right balance that is right for you.

It is important for you to monitor your accounts from time to time. It may be necessary to rebalance your assets, but using a long term approach rather that panic driven decisions.

If you can keep your head when all about you are losing theirs...Yours is the earth and everything that's in it...
Rudyard Kipling

Source: Goldman, Sachs & Co.

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Staying on top of your credit report allows you to protect yourself from identity theft, incorrect bills and a misrepresentation of your credit history. Knowing what is being reported, you can easily do credit repair yourself to eliminate damaging items on your report. I have published how you can easily remove negative items and the responses from readers who have used my tips are all positive. Read how you can be successful too by going to 'How To Remove Bad Credit from Your credit Report'

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Less Can Be More

Sometimes when looking for accounting methods for personal use or for your small business, less can be more.

Ever try using those complicated accounting applications that you need to be a rocket scientist and takes hours just to figure out how to even use the software? I have and it can be frustrating and cause you to make mistakes.

At LessAccounting.com their approach is simple. They give you an application that takes less time to figure out before utilizing. With a no nonsense approach, you have less hassles, less confusion, less time to waste before starting to managing your personal affairs or small business.

Your dashboard offers a home for your unpaid expenses and invoices. You can track payments, create small business reports, track mileage, send proposals and have a home for your sales leads and projects. In your contact management field, you can manage your employees, clients, accounts payable and addresses.

No prepayment is required to use this service. You pay as you go. You don't even have sign up fees. Their servers are secure, backed up nightly and also offer SSL encryption. There's more...LessAccounting.com even offers free tech support by the people who created this application.

Less is definitely more...

Rebuild Your Credit

Are you looking to rebuild bad credit ? One way to get back in good standing is to apply for a credit card. You probably receive many offers in the mail to apply for credit cards, but that doesn't mean you have to take the first bad credit offer you receive.

Wouldn't it be great if there was a web site that can compare the best rates, including APR, yearly fees, security deposits and membership costs? Well, now there is. If you go to Bad Credit Offers, you can get all the information necessary to make an informed decision that suits you best. They list the top credit card offers and give you the benefits of each, including which company will report to the credit bureaus.

You also can get information pertaining to home loans and car loans.

If you make your payments on time, you will rebuild your credit. This will perhaps help your financial future.

Get the Latest Info on Venture Investors, Technology Companies and Service Firms

If you are an investor or thinking of investing, you may want to look into VentureDeal Venture Capital Database .

At Venture Capital Database, you will receive all the information necessary to stay on top of the latest financial deals, start-ups, private equity funds and capital firms. Daily updates are provided on the latest transactions and potential business opportunities.

Once you subscribe, you have full access to their online database. You can use offline for personal use or download if you prefer. There is a no cost, no obligation 14 day trial you can take advantage of.

If you want to learn the latest on the deals going on throughout the financial world, read news on the latest technology happenings, and find information on people and events behind the scenes, I would recommend using the easy email option to sign up to receive free email updates.

Know The Facts About Personal Loans

Did you realize that credit cards are really considered personal loans?

When applying for credit cards you should always be aware of the terms and conditions before you agree to open an account.

A loan can fall under two categories:

secured ~meaning money is used to purchase property and a lien in placed against it. If you fail to repay, the bank can ultimately reposes the property.

Unsecured ~ meaning money you borrow does not have a lien against property.

Your credit history determines the interest rate you pay.
Bad credit personal loans are issued if you have a blemish on your credit report. A lower credit score can result. Due to this, you may find you will pay a higher interest rate or the lender may require a down payment.

I would suggest always reviewing your credit report. You can obtain a free report with each reporting agency each year. I do this faithfully. In the past, I had found items reported that were not mine and they actually were working against me. I had no idea those items were there until I reviewed my credit report. I was easily able to remove these inaccuracies by writing to the credit reporting agency to dispute the incorrect information. Doing my own credit repair, has helped me achieve a higher credit rating, lower interest rates on future loans and less stress.

How many of you receive those special offers in the mail stating you have been pre-approved or pre-qualified to open a new credit card?
I receive at least 2 or 3 offers each week!. The offers always sound enticing, but after reading the terms and conditions, I find these cards are not suited for my needs.

It's best to shop for the best rates and terms before deciding on a particular credit card. You should also consider how you will use the card. If you know you will carry a balance from month to month, you may want to have a card that carries a lower interest rate.

If you always pay your bill in full each month, you may want a card that offers no annual fee.

At 600.net you will find all the pertinent information needed about credit cards. You want to educate yourself before deciding on that offer you received in the mail. 600.net offers information regarding the types of credit cards available to you, how they work, how to prevent fraud and even how to repair your credit.

You may want to check out the information regarding auto loans at 600.net as well.

It is to your advantage to know the facts regarding any loan before signing documents. This will save you time and money.

Tips if Your Mortgage is Resetting ~ If You Are Refinancing or Just Trying to Get a Loan

7 Secrets for First-Time Homebuyers

1.) Visit a certified housing counselor at a nonprofit organization.
Housing counselors credentialed through a nonprofit agency provide objective advice and unbiased recommendations.

2.) Get your finances in order.
Find out what your credit report and credit score are and correct any inaccuracies. Lenders look at factors called the four Cs of credit: credit history (timely bill paying), capital (money available for a down payment), capacity (income versus debt), and collateral (the value and condition of the house).

3.) Look for down-payment and closing-cost assistance programs. Some nonprofit organizations and state or local government agencies can help you with down payment and closing costs through grant money or low-interest loans.

4.) Make sure homeownership fits with your lifestyle.
If you will be in a particular community for less than three years, if the local economy is not doing well, if unemployment is rising, or if your future income will not provide you with enough for mortgage payments and other financial responsibilities in owning a home, then renting may provide the better option.
Shop around for everything related to your home purchase.

5.) Follow the “rule of threes” by comparing at least three products, professionals or services before making your final selections.

6.) Get pre-approved for financing before shopping for a home.
Pre-approval is different from pre-qualification, which refers to when a lender calculates how much mortgage you likely can afford based on unverified information. A preapproval is a guarantee that the lender will loan you a fixed amount of money, as long as the property appraises over the amount for which you are qualified and you buy within a certain time period.

7.) Carefully select a location.
Research area schools, property tax rates, insurance rates, and crime statistics. Spend time thinking about things that may be important.

You can use this calculator to determine how much you can afford to spend on a home. However, many additional factors play a part in the loan qualification process.
www.ginniemae.gov

Programs sponsored by your state or local government or other organizations. Just pick your state to search for programs
www.hud.gov

Source: Neighborworks

Understanding Contract Terms

Let me describe the three basic contracts used to secure payment of money owed on a home.

Trust Deed:
A trust deed means just what it says. The deed to the house is held in trust until the balance is paid off. In addition to the trust deed, a promissory note is signed by the person making payments. The note states all terms required of the buyer in paying off the remaining balance. The note is secured by the trust deed. The trust deed document is secured by your home.

A trust deed document involves three people:
1) The Grantor: the grantor is the home buyer. They make you the monthly payments.
2) The Trustee: The trustee holds deed to the house until the balance is paid. If the trust deed goes into default, the trustee is responsible for foreclosing on the house. The trustee would normally be your attorney.
3) The third person on a trust deed is you.

You're referred to as the beneficiary. The beneficiary is the owner of the trust deed & note. They have all rights to the money owed secured by the documents.

Mortgage:
A mortgage does the same thing as a trust deed. However, there is no trustee involved. Again, a promissory note is signed stating how the debt on the mortgage will be paid. A mortgage document involves two people:

1) The Mortgagor: this is the person the home was sold to. They will make the specified payments.
2) The Mortgagee: this is the home seller. They own the mortgage and note, and have all rights to the money owed.

Land Sale Contract:
Land sale contracts can go by many titles in different states; real estate contract, property sale agreement, purchase contract or contract for deed. They all mean the same thing. No promissory note is used. All the terms on how the debt is to be paid are in the contract. Title to the house is held by the seller when using these contracts. When the debt is paid off the seller transfers title to the buyer. The buyer only gets title when you use a trust deed or mortgage.

Some home sellers prefer land sale contracts because they can hold title. If they ever had to foreclose the process is easier. Seek the advice of your attorney on this.

Managing Your Money for Homeownership

For many people, home is more than shelter: it is their biggest investment and a considerable financial asset. The difference between what your house is worth and the amount you owe is called your equity.

The first and most important way to protect your investment is to make sure you have enough money budgeted each month to make the PITI (principal, interest, taxes and insurance) payments on your mortgage loan and set money aside for home maintenance. You made a family spending plan when you were saving for a home. Now it is time to make a new spending plan to include all the expenses of homeownership.


To make a spending plan, meet with your family to budget your normal expenses, plus the new costs of homeownership, including:

Mortgage Payments: monthly principal, interest, taxes and homeowners insurance payments, as well as homeowners association fees and mortgage insurance if required.
Utilities: average monthly costs for electricity, gas, water and sewage, and trash collection
Routine Maintenance and Repairs: monthly savings for preventive maintenance and repairs (1 percent of the purchase price of the house for annual maintenance and repairs divided by 12 months)
Reserves: monthly savings for emergencies and/or goals (at least one month’s mortgage payment divided by 12 months)
*Note: Consider signing up for a “budget” or “average payment” plan with your gas and electric companies. Based on the history of gas and electric use in your home, the company will estimate the annual cost and divide it by 12 months. Once a year, the company will adjust the monthly payment up or down to reflect actual use. Then you pay the new amount for another year.

Paying a set amount each month for some of your utilities helps with budgeting since it spreads the high cost of winter heating or summer air conditioning throughout the year.

Developing a Savings Plan
Put money in savings on a regular basis. Ideally, you want enough savings to cover emergencies, routine maintenance and repairs, and your goals. Financial experts recommend building an annual emergency fund that is equal to one percent of your home’s purchase price. The amount of money you need to set aside to reach your goals depends on what your goals are and when you want to reach them.

Remember the Credit Trap
New homebuyers should not take on any new debt for car loans, credit cards or revolving credit for at least one year after closing. It will take that long to get used to making the new mortgage payments and to really understand how much it costs to take care of your home.

Test Your Financial Fitness

Answer the following questions to the best of your ability. Once completed, tabulate your answers to find out about your financial educational needs.
Questions:
1) Late payments on bills are a major problem and can lead to a denial of credit when seeking a loan.

True False Not Sure

2) You should keep enough in your savings account to cover three months of living expenses.

True False Not Sure

3) No more than 25 percent of your income should be used to pay off debts that require at least 10 months of payment before the debt is fully repaid.

True False Not Sure

4) If you don’t have enough money to pay your bills, you should call your creditors right away and tell them.

True False Not Sure

5) A bankruptcy will stay on your credit report for 7 to 10 years.

True False Not Sure

6) The lowest interest rate on a loan doesn’t always mean the best loan.

True False Not Sure

7) Banks are not required to provide customers the best, most competitive rate based on their credit score and financial means.

True False Not Sure

8) When you use a credit card, you are borrowing money from a bank.

True False Not Sure

9) The practice of keeping your ATM receipts is not a sufficient means of financial management.

True False Not Sure

10) Your credit history has an effect on your ability to get a job or rent an apartment.

True False Not Sure

Get the answers here:

http://www.keystomyhome.org/ready/testfitness/indexform.asp?type=results

Know Your Loan-to-Value Ratio

Your loan-to-value ratio is something you should know. It's an important figure when getting or refinancing a loan or requesting the removal of private mortgage insurance (PMI).

Here's how you can figure it out.

If You Are in the Process of Getting a Loan:

1) Start with the purchase price of the property as the value for the property. (I'll use the amount $150,000 as an example.)

2) Subtract the amount of your down payment ($20,000 in this example).

3) Identify your loan amount (the purchase price minus the down payment; in this case $130,000.)

4) Divide loan amount (loan) by the purchase price (value). In this example, it would be $130,000 divided by $150,000, which equals 0.87, or 87 percent - your ratio.

5) Use this number with your lender when referring to your loan. You would say that you want a loan with an 87 percent Loan-to-Value or LTV.

**Most loans with an LTV over 80 percent require PMI.

If You Already Have a Loan:

1) Get an appraisal of your property. Once you own a home, this is the only way to get an accurate assessment of its value. (If you are just doing this for information purposes, you can save the appraisal fee and simply estimate the value by comparing your property to similar homes in your neighborhood that have sold. This will be the value number for the equation.)

2) Look on your most recent loan statement to find out how much you owe (your balance). This will be the loan number for the equation.

3) Divide the loan figure by the value figure. This is your ratio.

**If you request the removal of PMI, you'll have to provide an appraisal. In removing PMI, you may request in writing to your current lender that the PMI be removed if the ratio is 80 percent or less. If you request an appraisal and the value isn't high enough, you will still pay for the appraisal.

More on Loan-to-Value (From Wikipedia)