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Mortgage Information On Your Money

2012 is going to be a very interesting year with the election and all the problems in Europe. We thought that the US meltdown was bad, watch the European Nations that are geared to Socialist Policies fall by the wayside due to its agenda of entitlement. There will be a lot of entitlement reform going on with a lot of people screaming “Where is my free money?”

It is a time of saving money for backup if anything happens in your financial life. Payoff as many bills as you can possibly can. Cash is king so keep some on hand in an emergency fund to pay your mortgage or rent in an emergency. You do not want to get behind on your mortgage if you can afford it. Home Mortgage – this is a good time to refinance your mortage on your home. Contact your Mortgage Broker and consult with them concerning refinancing your mortgage now while the mortgage rates are low.

Money moves for 2012

Published: Sunday, January 08, 2012, 8:28 AM
 By Times of Trenton guest opinion column The Times, Trenton
 

Andrew Miller/For The TimesMoney, Print 2011 by Arthur Coombe at the gallery opening for the Arc Mercer Artists at the Ewing Municipal Offices on Wednesday, August 3, 2011.
By Kurt Rossi
FOR THE TIMES

The New Year is a time to take a step back, reflect on the past year and consider what can be done to improve the future. In addition to typical resolutions, the New Year brings with it the opportunity to do something to improve your financial well-being. The money moves listed below outline strategies that may help you get started on the right path in 2012.

•Know your break-even point.

One of the most useful ways to approach your personal finances is to treat them as though they are not personal at all — manage your finances like a business. One important number that all business owners are aware of is their break-even point.

When a business’s expenses equal its income, that’s the break-even point.

Do you know your break-even? Unfortunately most people are completely unaware of exactly how much is coming in after taxes and how much is going out in the form of living expenses.

One of the most effective tools for shedding light on your break-even point is your budget. While many people become stricken with panic and anxiety when they hear the word budget, the exercise can be painless when approached properly. Interactive online budgeting tools found at websites like Kiplinger.com or Bankrate.com can provide a framework for listing income, expenses, and for determining your household profit or loss. Becoming aware of exactly how much you are spending can be an eye-opening experience, but it lays the foundation for reducing unnecessary expenses that can be applied toward other financial goals.

•Build an emergency fund.

Cash reserves are the cornerstone of any sound financial plan as they help protect you from the inevitable financial curve balls that life may throw at you. While many experts suggest three months’ worth of expenses in an accessible reserve, the continued economic uncertainty may mean that you need six to nine months’ worth in order to provide a stronger safety net.

Many savers feel it is unrealistic to expect to accumulate a savings of that size. It’s true that it could take some time to accomplish this task. However, keep in mind that consumers have no problem taking five years to pay off a loan for their latest auto purchase.

Approach your savings with the same discipline. Monthly cash reserve savings should be budgeted just like any other expense so that you can begin the New Year with a game plan to accumulate a solid financial parachute.

•Consider refinancing.

Mortgage rates are near all-time lows and present a tremendous opportunity to those who can take advantage of them. According to Freddie Mac’s primary mortgage market survey, the rate on 30-year and 15-year mortgages are approximately 3.9 and 3.2 percent respectively. Refinancing a $200,000, 30-year fixed-rate mortgage at 5.75 percent to current rates could save nearly $233 per month.

In addition to refinancing a primary mortgage, this may be an opportunity to consolidate other debts. Consider transferring variable rate debt like home equity lines of credit or other credit card debt to a single fixed loan at one of the best rates in history.

For homeowner’s who owe more than their home is currently worth but are current with their mortgage payments, the recently modified federal government’s Home Affordable Refinance Program, or HARP, could be an effective option for taking advantage of lower interest rates. However, in order to qualify, the mortgage must be owned or guaranteed by either Fannie Mae or Freddie Mac.

•Increase your retirement savings.

The recent collapse in the equity, housing, and job markets has pushed the target retirement date back for many investors. In fact, the Employee Benefit Research Institute has stated that approximately two-thirds of American workers reported total savings and investments of less than $50,000.

There are a few things to consider in order to improve your retirement plan. First, time is a saver’s greatest resource — the sooner you begin saving, the closer you may be to retiring. Next, consider gradually increasing your retirement contributions by a few percentage points throughout the year. Keep in mind that the IRS has increased the 401(k) limit for 2012 to $17,000, allowing additional savings.

Finally, take full advantage of employer-provided matching contributions. Simply put, a match is free money! If you are not saving up to the maximum matching level, you are leaving money on the table.

Implementing the tips above can help establish a solid financial game plan for the New Year. Consider taking action so that when 2012 eventually comes to an end, you can reflect on the year and feel confident about your financial well-being.

This is for general information only. Please consult your adviser about your specific situation.

Kurt J. Rossi, MBA, is a CERTIFIED FINANCIAL PLANNER™ Practitioner & Wealth Advisor. He can be reached for questions at 732-280-7550 and kurt.rossi@Independentwm.com. LPL Financial Member FINRA/SIPC.

Source:  Times of Trenton

Mortgage Information News

How To Get Government Mortgage Assistance

Getting government mortgage assistance is very important now. The economy and the job situation is not getting any better but is predicted to get better in 2013 from most economists. This is good news for consumers and homeowners. More jobs will be available to help with the mortgage foreclosure situation.

Government Mortgage Assistance To Help Avoid Foreclosures

Government mortgage assistance can help home owners avoid foreclosures. They should definitely learn about the government guidelines to avoid a situation of foreclosure in this difficult time of recession. President Obama announced the mortgage assistance plans on February 18, 2009. These plans are a part of the Homeowner Affordability and Stability Plan.

This program aims to provide $75 billion assistance to struggling homeowners. There are two main goals of this program. One is to help the existing homeowners avoid foreclosures. The second is to help the current homeowners refinance their mortgage. Refinancing will help these homeowners make lesser payments every month by using fixed-rate loans.

People who are not able to pay their monthly mortgage payments qualify for the former government mortgage assistance. People who think that they will not be able to pay their installments in the near future should also consider this option. If someone is not able to pay his monthly mortgage payments, he can work with a lender to modify the terms of the mortgage. If the lender agrees to lower the amount the borrower pays every month, the borrower can avoid foreclosure.

However, this decrease would last only about five years. After five years, it will increase to what it originally was. With the government’s program, the borrower may qualify for a reduction in his principal balance if he is able to make payments on time. Lenders also benefit by receiving incentive payments for the loans they modify. However, this program will only benefit people who reside in their homes. Nobody will be eligible for this program after 2012. People can check the government’s website to see if their lender is participating in the government’s program.

People who are up-to-date with their monthly mortgage payments are the ones who fall in the latter category. These are the people who are not able to refinance their home as the value of their home has gone down. The government mortgage assistance program has refinance options available for them. Under this plan, the homeowners would need at least 20 per cent equity to qualify for refinance. This program also helps people with no equity and even negative equity.

Another qualification for refinancing homes is that the homeowner’s home should either be financed by Freddie Mac or Fannie Mae. You could either check the government’s website or contact your lender to determine whether you qualify for the loan or not. This plan is not for people whose home’s value has become very low. This has happened with many people in California. The value should not have plummeted below 5 per cent of the original. However, even a small amount of equity increases your chances for qualifying.

The main eligibility factor for government mortgage assistance for people going in for refinance option is that they should be consistent with their monthly payments. These homeowners should also have been making their payments within 30 days of the due date consistently within the past one year.

You can learn more about government mortgage assistance or get help by filling a form at the given link.

Government mortgage assistance can help avoid foreclosures by modifying existing mortgages and refinancing people’s homes.

Source: Open Press

Mortgage Help

The Dos And Don’ts of Personal Debt Loans

If you’re suffering from debt problems at the moment, you need to find a solution quickly. Getting out of the debts is not easy, but you need a plan of action to become debt free. It is a real headache and a lot of stress having these kinds of financial problems in your life. The amount is not important but how you deal with your debts is.

It is time to get a grip on your mental state because having debts hanging over you can make your life hard and the worry can actually even make you ill. Your plan of actions is to sort out all of your problems and then consolidate your personal debts together to make one payment for all your debts.

This is why a lot of people nowadays are choosing to sort out their debts once and for all by consolidating them together into various types of personal debt loans solutions. By doing this, getting credit will be easier when it comes time to get a new mortgage for that new home you have been looking at for a long time. Qualifing for a new mortgage requires good credit.

This is great info on your Credit Blog: http://ping.fm/F7nNm

Poor Credit Score

Are you one of those people who have a poor credit score because of having too many debts. Banks look at people with too much debt as a bigg risk because they understand that if you are paying on too many accounts, it is harde to pay one or two even if the total amount of the borrowings remains the same.

Efficiency comes from making you financial management easier by only having a few debts to remember to pay every month..

Debt Consolidation has benefits of a reduction in the repayments due to getting all your loans under a lower interest rate.

If you are one of the lucky ones who own their house, then mortgage rates will usually be lower than the interest rates you will be paying on personal loans. Some purchase agreements like Rent To Own are very high interest rates.

It is easy to reduce your outstanding debts when you apply the money saved with a lower interest rate with this debt consolidation loan and the principle drops faster.

This in how you can boost your credit score and that will help you to get any further loans at better rates should you need them.

Bankers look at how much of a risk factor you are and it will be reduced. This will be reflected in a better credit score.

Even minor savings in interest rates will make the repayments over the course of a year or so a lot more manageable and if you use the savings to pay off debt you will be fast tracking your debt reduction and improving your credit score faster.

Getting back on track for most people is hard but worth it in the long run. If you have multiple debts, some of them can be at higher interest rates. Savings will achieved when consolidating debt and this is one of the first areas that financial managers will look at when they are preparing a budget and management plan to get someone back on track financially.