More Secrets To Raising Your Credit Score..

Did you know that the credit bureau sells your private information every time you apply for a credit card, a cell phone, insurance, or any loan? You don't even need to give them permission to do it, they just do it! Is it any wonder that identity theft is the fastest growing crime in America? You can stop them from doing this. The government forced the credit bureaus to create an opt out site: www.optoutprescreen.com. This tells the credit bureaus to stop selling your information. When you do this, 2 things will happen.. you will notice a 75% decrease in junk mail and your credit score will go up, because they see this as a responsible thing for you to do!

Did you know that paying a collection account can actually reduce your credit score? Sounds backwards, but here's why.. The credit bureaus look at the date of last activity on each account to determine the impact it will have on the overall credit score. When you make a payment on a collection, the scoring system sees that as recent activity. Even though the activity was to do something good, the credit scoring software goes by date of last activity and makes the collection fresh again. Makes no sense to me either, but those are the facts.

Secrets To Raising Your Credit Score..

These quick tips will help increase your overall credit score.. First, never cancel a credit card that is more than 2 years old. Having a "seasoned" account, one that is more than 2 years old is a big plus for you. Next, increase your maximum allowable credit limit. In other words, if you have a credit card that is close to its maximum balance, call the credit card company and ask them to increase the credit limit. The credit bureaus don't like to see maxed out credit. Tell them you would like them to do this without pulling your credit. You should also spread out your balances among your cards. trying to keep the ratio between card balances and credit limit to 30% or less. If you are even considering buying a new home or refinancing, let's take a look and see if we need to do some work to get your credit score up to its highest possible point. Since lower scores mean higher interest rates, even a few lost points on your credit score could cost you tens of thousands of dollars in wasted interest payments.

Mark Twain's Top 9 Tips for Living a Great Life

1. Approve of yourself. "A man cannot be comfortable without his own approval."

2. Your limitations may just be in your mind. "Age is an issue of mind over matter. If you don't mind, it doesn't matter."

3. Lighten up and have some fun. "Humor is mankind's greatest blessing." "Against the assault of laughter nothing can stand."

4. Let go of anger. "Anger is an acid that can do more harm to the vessel in which it is stored than to anything on which it is poured."

5. Release yourself from entitlement. "Don't go around saying the world owes you a living. The world owes you nothing. It was here first."

6. If you're taking a different path, prepare for reactions. "A person with a new idea is a crank until the idea succeeds."

7. Keep your focus steadily on what you want. "Drag your thoughts away from your troubles...by the ears, by the heels, or any other way you can manage it."

8. Don't focus so much on making yourself feel good. "The best way to cheer yourself up is to try to cheer somebody else up."

9. Do what you want to do. "Twenty years from now you will be more disappointed by the things that you didn't do than by the ones you did so. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover.

What are some common-sense questions you can ask a lender about mortgages?

Ask all the following questions. A reputable lender will answer them for you in plain English. Question 1: Which type of loan is best for me? Any reputable lender will want to find out more about your situation so he or she can suggest the correct loan (fixed rate, adjustable, etc.) to meet your needs. So, choose a lender who takes the time to gather vital information from you. Also, pick one who explains the advantages and disadvantages of each type of loan. Avoid any lender who tries to force a particular type of loan on you without finding out more about your situation. Question 2: What is the interest rate and the annual percentage rate? The annual percentage rate (APR) is calculated by a complex formula. This formula includes the interest rate and all the other related lender fees divided by the loan's term. However, keep in mind that some lenders do not compute APR correctly. Also, there is no accurate way to compute an APR for an adjustable loan. Finally, the APR does not account for early payoffs. If your interest rate is adjustable, ask about its... adjustment frequency... maximum annual adjustment... highest rate (cap)... index... margin. Question 3: What are the discount points and origination fees? Generally speaking, a "point" is equal to one percent of the loan amount. So, for example, two points on a $400,000 loan results in a cost of $8,000. Points allow you to "buy down" the interest rate. This means that the more points you pay, the lower your interest rate will be. So, for an upfront payment, you save money over the life of the mortgage. Plus, points are tax deductible. Note: some lenders charge origination fees as well as points. Question 4: Do you offer loan rate locks? It is a fact that interest rates go up and down on a daily basis in the marketplace. If those rates are threatening to move up, you can save money by locking that rate in. Typically, lenders charge from zero to one point to lock in a rate and points. Be sure to ask what the charge is... how long it will be locked in... and if the lender will give the lock in writing. Question 5: Is there a prepayment penalty? It is wise to ask about this subject because generally, prepayment penalties allow the lender to collect an additional six months of "unearned interest" if you pay the loan off early through a refinance of sale of the property. Ask the following questions about a prepayment penalty... How much is it?... What are the terms?... Will the prepayment penalty apply if I refinance through you later on? Question 6: Where do mortgage rates come from? Mortgage rates fluctuate daily - sometimes even multiple times a day. Have you ever wondered where those rates come from or why? The answer lies on Wall Street - specifically the trading of Mortgage Backed Securities (MBS). MBS trading could result in a dramatically higher or lower payment when you are ready to lock in your rate. Go to http://www.yourrateexplained.com/ for more details.

There are more questions you can ask, of course, but the six listed  will give you a good start on finding a reputable lender to work with.

Please feel free to contact me with regarding prepayment penalties, interest rates, loans in general, or any other questions. I also hope you will tell your friends and family about me when it comes time to buy, sell or refinance their homes.

Closing Cost Magic Trick?

One of the more popular loans is the 30 year fixed "NO closing cost loan". Some lenders want you to think it's a magic trick. Here's how it works.. the loans come at a slightly higher interest rate and then the lender pays your closing costs with the bonus they get by quoting you a slightly higher rate than a regular loan. For example, let's say you have a $400,000 loan at a 5.75% interest rate. If you refinance to a 4.75% rate, it would save you about $248 per month. If the closing costs would then be $5,800 it would take about 2 years to break even. However, on a NO closing cost loan, instead of saving $248 per month you would save about $187 dollars a month, but there are no costs, so the break even point is immediate. With the no closing cost loan, since there is no cost, you can refinance even if the rate only drops just a small amount, because there are no costs involved for you to pay at all.. Nothing! So now you know the truth behind the "No closing cost" loans! Remember, you can use this strategy for buying or refinancing your home and you can always count on me to give you honest, helpful information. If you'd like to see which method is best for you, give me a call!

How can your credit score affect mortgage refinancing?

Most lenders use your "FICO" (Fair, Isaac and Co.) credit score to evaluate any mortgage loan or refinancing application you make. So, before contacting them, it is wide to get a copy of your credit score. If you are not familiar with the purpose of a FICO score, basically it tells lenders, creditors and others if you are a good risk or a poor one in terms loans. The score is arrived at by a formula involving your history of paying off debts like credit cards, mortgages and the like. The bottom line is this: The higher your FICO score, the better chance you will get a mortgage "refinance" at a lower interest rate. Currently, any score of 700 or above is in the good range to excellent range. If your score is below 700, then refinancing becomes more expensive in terms of interest rates. Since lenders consider you a higher risk, they want to ensure they will be repaid. Where can you get your FICO score? Several companies offer them on the Internet: myfico.com and the three major credit bureaus (Experian.com, TransUnion.com, and Equifax.com) offer you your credit report and your FICO score for a small one-time fee charged to your credit card. Equally important, they provide you with suggestions for improving your score. Be sure to review your credit report carefully. If you find errors, ask the three major credit bureaus to correct them before you apply for refinancing. You should expect to receive a corrected credit report within 30 days.

Paying 50 To 500% Interest On Your Taxes?

During tax time I see all kinds of companies that advertise paying you in advance for your income tax refund. It seems like these are OK deals until you get out your calculator.

Several of the well-known income tax preparation services offer these advance loans, so they seem legitimate. However, the amount charged to receive your loan back a few days sooner is outrageous. According to a report by the National Consumer Law Center, refund loans cost the average person using them anywhere from 50% to 500% interest!