With so many incentives to buy a home, now is by no doubt, the time to buy. With lenders tightening their guidelines, you might want to be sure you have your finances in check.
With brand new federal regulations, this will help you understand how it will benefit you and tame your credit card debt. The bad news, is because of this government intervention you might have already seen a rise in your interest rates. This is from Red Book Magazine
1. They can’t raise interest rates on debt you’ve already racked up. They can if you are more than 60 days late on these payments. So pay your cards on time!
2. If your card charges you different interest rates (say, 14% for existing balances, and 2% for balance transfers), they must apply your payments to the debt carrying the highest rates first. So the faster you pay it off, the more money you save.
3. They can’t raise your rates if they find out you’ve been late on other credit cards or loans. This doesn’t mean you credit score will not be affected, which can eventually lead to higher interest rates. Your best bet is just to pay it on time.
4. You can no longer go over your credit limit and be charged the subsequent fees- unless you notify your credit card company in writing that you’d like to spend more than your limit. So don’t spend more than your limit.
5. They will tell you on your bill how long it will take to pay off your debt and how much it will cost you, including interest, if you pay only the minimum each month. This will be an eye opener, and a hard lesson for many. Pay more than the minimum or you could possible pay on this card longer than your house mortgage.
6. Those under 21years old won’t be able to get a credit card unless they show proof of income or get an adult to cosign. I think this is the smartest law of all! When I was in college, you would sign your life away for a free t-shirt or can coozie. All adults over the age of 21 take note…DON’T COSIGN
As much as I LOVE helping people buy their dream house in the Rock Hill SC or Fort Mill SC and the surounding areas, one of the downsides of purchasing a new home is the 30 year mortgage that often times comes with it.
In fact, while many people get super excited about their new house, and they absolutely should be, it’s not until a few weeks later that they realize that even though they’re in a new home what they’ve really bought is a 30 year mortgage.
Of course it could be a shorter term, but regardless, until the note’s completely paid off, all you really own is a monthly payment. And according to the statistics, the average home owner refinances their home mortgage once every 4-5 years.
While I expect this statistic to change with the recent financial upheavel, I still expect that most people will refinance their mortgages periodically to take advantage of lower rates, cash out their equity, etc.
Now, it’s not that this practice is bad, but essentially what ends up happening is you ultimately push back the time when you could actually own your home free and clear. And if you’re dream is financial freedom, being completely debt free, and not being indebted to anyone, then I’d invite you to check out a powerful program created to help anyone with debt pay it off in record time.
Here’s a quick video that introduces this product and how it could help you reach your dream of being completely debt free much faster:
[media:http://csalisbury-videos.s3.amazonaws.com/MMAoverview6min.flv]
If you’d like to learn more about this system and how it could help you pay off your debt fast, visit:
www.PowerfulDebtPayOffSystem.com
Filed under Buy Your Dream House, Credit Repair by 
To continue with the post I made a few days ago, I wanted to give you a few more questions you should ask your mortgage lender to ensure you’re not being taken for a ride.
What’s my minimum required down payment?
This one’s kind of important since it will tell you exactly how much money you’ll need to put down in order to get into your dream home. Different lenders have different requirements, as do different lending programs, so the only way to find out is to ask.
Will there be prepayment penalties?
This is another big one since many people plan on paying off their mortgage early. It’s much better to find out right now if you’re going to have to worry about paying prepayment penalties for getting it paid off early, than to breathe that big sigh of relief as you write what you think is the last check, only to find out you’re going to get hit with massive penalties.
How long will it take to close the loan?
The average closing is typically between 30-45 days from the time the final offer is accepted, but it is possible to close much faster. It really comes down to all pertinent parties involved, the buyer, the seller, and the lender. If you need to close in 10 days, even though it’ll be a mad dash to the finish, it’s certainly a possibility so be sure to ask your lender how quickly you can take care of things.
Is there anything that might delay my loan?
This is a question that will help you avoid a lot of stress, head aches, and heart ache during the loan origination process. Asking your lender what they need upfront, and then following up to find out if there’s anything that might delay the load is simply a good idea so you can avoid any unnecessary delays in getting to the closing table.
What documentation will you need?
This is another one that will simply save you time, headeaches, and hassles as the lender works through their process. Also, it’s extremely important (and relevant) for you to stay in touch with your realtor during this time in case something comes up that they need you to provide. Although you should have a good indictation as to what documents might be missing.
Overall, the process of buying or selling a home can be quite stressful. But being an informed consumer can really help you feel more confident about the process AND make sue you’re banking a good future.
Filed under Carolina Real Estate, Credit Repair, FSBO's, Home Sellers, Marketing, Mortgage Rates by
On Wednesday, July 30th President Bush signed into law a new housing relief law aimed at helping out the nation’s struggling housing market and those homeowners affected by it. The bill is intended to rescue about 15% of the homeowners that are in danger of losing their homes to foreclosure.
While it can be a bit confusing to disect what exactly this new bill includes, I found a great resource on CNBC.com that breaks down the benefits. Here are some of those benefits:
- All homeowners who do not itemize their income taxes can deduct between $500 and $1,000 from their 2008 federal taxes.
- Anyone buying a first home between April 9, 2008, and July 1, 2009, will receive up to $7,500 in federal income tax credits.
- Homeowners struggling to make payments on high-interest mortgages can contact their banks and transform their loans into government-backed, 30-year fixed-rate mortgages. To qualify for this break their mortgage debt-to-income ratio must be greater than 31 percent.
- First-time buyers or homeowners with subprime mortgages in some states can qualify for low-interest loans or refinancing under a provision allowing states to offer an additional $11 billion in tax-free municipal bonds to pay for such housing projects.
- Homeowners strapped for cash will be able to receive preforeclosure financial counseling and legal services.
Now, not everyone qualifies for these breaks it is a good to see some steps being taken to help the millions that have been affected most by the shady lending tactics that are one of the causes of the current housing and financial slumps.
Stay tuned because in the next few days I’ll share some tips for making sure you’re not getting in over your head when it comes times to getting a mortgage for your new Rock Hill, SC or Fort Mill, SC home.
Filed under Credit Repair, Interest Rates, Mortgage Rates by
With the financial markets becoming increasingly volatile, more and more homeowners are facing the possibility of foreclosure or worse, bankruptcy.
While it can be a scary situation to be in, be very careful about the advice you listen to and some of the ‘solutions’ that are presented to you.
Always do your homework, read the fine print, and consult a reputable expert!
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Filed under Carolina Real Estate, Charlotte NC, Credit Repair, FSBO's, Fort Mill SC, Home Buyers, Home Sellers, Interest Rates, Market Trends, Mortgage Rates, Rock Hill SC by
