There seems to be a crossroads that many homeowners reach after being in a home a few years: should you refinance your current home or buy a new one? Especially in a market like we are in now, real estate is really “on sale.” Some people struggle with staying in their current one or taking advantage of a buyer’s market.

If this is an issue you’ve been thinking about, your first task is to assess your current home. Does it still fit your needs? Will it fit your needs for the next 3-5 years? Are you planning for any financial events like children, college, retirement, job change? Do you still enjoy the location? How is the market in your area doing now? Is it feasible for you to move with your current financial situation?

Read the rest of this entry »

• Share
  
  • Subscribe
  • Digg
  • del.icio.us
  • Facebook
  • Reddit
  • StumbleUpon
  • Technorati

See Related Blogs & Articles

Remember School House Rock? How a bill becomes a law? In 5th grade, I played “Bill” in a 1-act play staged in our school cafeteria. But I never thought my star appearance would come in handy until this week when some huge housing changes were signed into law. I wrote about this last week, but the final word, freshly inked by President Bush, is officially in effect! So details are in order.

With about 700 pages in this bill, it covers a lot of ground but here are some main points homeowners, home buyers and anyone interested in mortgages or real estate will want to know. Keep in mind I’m really only going to focus on the key home/money issues of the new legislation since, well, that’s what Quizzle is all about.

Read the rest of this entry »

• Share
  
  • Subscribe
  • Digg
  • del.icio.us
  • Facebook
  • Reddit
  • StumbleUpon
  • Technorati

See Related Blogs & Articles

Lenders look at your credit report every time you apply for credit, but many people don’t know what their credit score is or how the score is calculated. Hopefully, if you are a regular reader, you are on the up and up! But here is the low-down on how it works behind-the-scenes before we give you your free credit report and score here on Quizzle.

Really, what is a credit report?
A credit report is a document that lenders use to assess a person’s credit risk. It shows your payment history, the amount of money owed, the types of credit in use, the proportion of balances to credit limits, delinquencies and public records including bankruptcies and foreclosures.

So what’s in there and what determines your credit score?
Your credit score is a numeric representation of your financial responsibility, based on your credit history. Your credit score is determined by several factors:

• Payment History: One of the biggest factor in determining your credit score. It shows whether you’ve paid your accounts on time and whether you’ve been delinquent in making any payments. It also shows if you’ve ever filed for bankruptcy or been foreclosed.
• Amounts Owed: This is another big factor in determining your credit score. Having credit accounts and owing money doesn’t mean you’re a high-risk borrower. But owing a lot of money on several accounts might suggest you’re overextended, and thus a higher risk.
• Length of Credit History: Generally, having a longer credit history is better than having a short credit history. Lenders need to see that you can manage your credit accounts responsibly over time.
• New Credit: Opening several new credit accounts in a short amount of time can be viewed as a higher credit risk.
• Types of Credit in Use: This includes credit cards, retail accounts, installment loans, finance company accounts and mortgage loans.

Misconceptions About Credit Scores:
Some people think that they can’t get a mortgage because their credit score is too low. Actually, this isn’t necessarily true. Some mortgage lenders offer loans designed for people with credit problems. More specifically, FHA is touted as one of the most flexible mortgage when it comes to credit and income

It is also a misconception that paying off a delinquency can raise your score. Since delinquencies stay on your report for years, so this isn’t entirely true. Delinquencies are viewed as a weak commitment to paying off your debts. Though, provided your recent payment history is better, those past delinquencies will bear less weight over time. And you should always pay your delinquencies or make every effort to avoid them altogether.

The Consumer Federation of America and Fair Isaac Corporation conducted a study and found that nearly 45% of respondents think that making more money will improve their credit score when, in fact, your credit score is not determined by your income, but by the factors listed above.

Understanding what a credit report is and how your score is determined is a good first step towards improving your credit. To get a better picture of how your credit stacks up, make sure you’re utilizing the free credit report and score from Quizzle.

For any specific questions about your credit or if you’d like us to post about a particular topic, just hit us up! Blog@Quizzle.com

• Share
  
  • Subscribe
  • Digg
  • del.icio.us
  • Facebook
  • Reddit
  • StumbleUpon
  • Technorati

See Related Blogs & Articles

Even with Presidential veto threats looming, the housing stimulus package has taken another necessary step to being implemented – it has taken on another round of changes, passed the Senate, and is on its merry way to the White House again.

The package goes by a few different aliases, all hoping to do the same thing – give the US economy the kick in the pants it needs. According to GovTrack.us, the stimulus package includes the following ideas/titles:

1. Foreclosure Prevention Act of 2008
2. Building American Homeownership Act of 2008
3. FHA Manufactured Housing Loan Modernization Act of 2008
4. FHA Modernization Act of 2008
5. Mortgage Disclosure Improvement Act of 2008
6. REIT Investment Diversification & Empowerment Act of 2008

While diversifying and disclosing is all well and nice, what does the housing stimulus package mean for you? More stimulus checks? Not quite. Tax breaks and tax rebates? Maybe.

So what the heck do 631 pages of super fun bill writing include? We did the research so you don’t have to! Here are the highlights:

• We all know conventional and FHA loan limits have been raised through 2008. Currently set to expire on New Year’s Eve (no toast for that), the housing stimulus package includes plans to keep them higher than they were in years past – it’s likely to be somewhere around the $700,000 mark. This means lower rates on bigger loans.
• Tax credits for “first-time home buyers” – it’s in quotes for a reason. This group is defined to include actual first-time home buyers and buyers who have not owned a home for at least three years. The tax credit for those buyers can be up to $8,000.
• A property tax reduction for American homeowners—$500 for single filers and $1,000 for joint filers—for the 25+ million homeowners who pay property taxes, but choose not to itemize their deductions.
• What about homeowners already in distress? They’re covered, too – the FHA is working on programs, including FHA Secure, to assist homeowners currently behind on their mortgage and for those who currently owe more than their home is worth. It could help up to 400,000 homeowners potentially facing foreclosure.
• And for the lenders? Better disclosure with regards to the potential changes in mortgage payments during the loan’s lifetime. The information will need to be provided at least seven days before closing.

Those are really just the high points of the housing stimulus package. While controversial, Congress has taken ample time to discuss, re-write and re-discuss the bill. It’s coming to the point of fruition – will President Bush sign or not? If he doesn’t, the fact remains that Congress could be so united in the housing stimulus package that they will override him. And in this election year, it’s likely that the Bush Administration may pick up their pens and sign.

If you have questions about refinancing or buying a home or would like to see us write about a particular topic, e-mail blog@quizzle.com.

• Share
  
  • Subscribe
  • Digg
  • del.icio.us
  • Facebook
  • Reddit
  • StumbleUpon
  • Technorati

See Related Blogs & Articles

The term “down payment assistance” sometimes conjures up negative thoughts – but when it comes down to it, who wouldn’t benefit from an influx of extra money when buying a new home? Sounds like a win-win.

The most important thing to know is that basically any qualified home-buyer can utilize down payment assistance – contrary to popular belief, it is not reserved for low-income individuals with less-than-perfect situations. It can help them too, but as a smart home-buyer, you should take advantage of every opportunity possible. One huge opportunity that is too oft-missed is down payment assistance.

So, how does one actually get down payment assistance? In other words, who’s giving out all this free money? Know this: it’s not one particular person or institution – when talking about down payment assistance, it’s usually seller-funded.

All seller-funded means is the seller of the home you are buying is making concessions to help you buy the home. But, because it is illegal for sellers to just give the money to buyers outright, down payment assistance providers like Nehemiah® and AmeriDream® are used.

Here is the breakdown of the process of obtaining down payment assistance

1. Find a knowledgeable lender who is registered with a down payment assistance provider and can help walk you through your financing options.
2. Find a real estate agent who is experienced in negotiating seller concessions and down payment assistance. Then, find your home!
3. When writing a purchase agreement (offer), include the contingency that, upon accepting the offer, the seller will contribute to a down payment assistance provider. You choose the amount – Nehemiah allows up to 6% of the final sales price and AmeriDream allows up to 10%. Each provider requires a fee, too – most are under $500 and if you write it into your purchase agreement, you can get a seller to pay that too.
4. When the seller accepts, they donate the agreed upon amount to the down payment assistance provider.
5. Prior to closing, the seller sends the money to the down payment assistance provider and your lender arranges to get it from them to fund as a part of your new loan.
6. Close! Your lender and down payment provider will take care of all loose ends and paperwork.

Once the seller agrees to your offer, your lender will show you how you can use your money – as part of your down payment, to pay points for a lower rate, or for closing costs. The keys to down payment assistance are with your lender and your real estate agent. Through them, you’ll negotiate yourself a great deal with less money out of your pocket. Still sounds like a win-win to us!

Need more info about FHA? Get the details about Quicken Loans FHA Express and how you can get down payment assistance.

• Share
  
  • Subscribe
  • Digg
  • del.icio.us
  • Facebook
  • Reddit
  • StumbleUpon
  • Technorati

See Related Blogs & Articles