Make Your New Year’s Resolution a Financial Success

According to a research study by British psychologist Richard Wiseman, 88% of New Year’s resolutions fail. Prevent your resolutions from falling short of expectations with some easy tips from Informa Research Services, a subsidiary of Informa plc (LSE: INF).

Save Strategically
Saving money sounds relatively simple and easy, but for the best results, consumers should combine a high yield deposit account with regular contributions.

Finding the best high yield savings account is now simple with the help of online rate tables such as those featured on ERATE.com. These tables compile information from various financial institutions and assemble them on a single table for easy comparison shopping.

To ensure regular contribution to your savings account, schedule automatic transfers from your checking account. In addition to building your savings, automatic transfers to a savings account can sometimes help waive some of the fees associated with checking accounts. Check with your financial institution.

Minimize Your Mortgage
Your resolution to save money can also be bolstered by reducing your monthly expenses. Look into refinancing your mortgage to a lower rate or shorter term. According to Informa Research Services’ Interest Rate Review, the national average rate hit 5% this week; however, low rates are still being offered by many lenders.

To quickly locate these low rates, consumers should check online rate tables, which can retrieve offers from various lenders using just basic, non-sensitive information. These tables also frequently feature lenders who offer rates well below the national average.

Depending on your remaining mortgage balance, because rates are so low, you may be able to refinance your current loan to one with a shorter term without increasing your monthly mortgage payment significantly. Shortening your mortgage term is beneficial because it means you should own your home sooner and you should end up paying less interest over the term over the entire term.

Using these simple tips, stick to your financial New Year’s resolutions. Do so and the benefits will serve you well beyond 2011!

HAMP Falls Short, But Consumers Can Still Save

In a report issued this week, the Congressional Oversight Panel (COP) claimed that the Home Affordable Modification Program (HAMP) fell incredibly short of the Treasury Department’s expectations. Nonetheless, Informa Research Services suggests consumers take the initiative to educate themselves on possible opportunities to make their homes as affordable as possible.

According to the COP report, even though HAMP was projected to prevent three to four million foreclosures, it will only prevent about 700,000 to 800,000 foreclosures (Source: http://cop.senate.gov/). Furthermore, HAMP was expected to prevent 8 to 13 million foreclosures by 2012.

Despite the incentives offered by HAMP, the report claimed that the complications involved in mortgages was not accounted for and thus are partially to blame for HAMP’s shortcomings.

Regardless of what safeguards the government puts in place to help struggling homeowners, consumers should take the initiative to educate themselves on the home loan process and opportunities to reduce their monthly mortgage payment. One way to minimize your mortgage payment is to refinance their current home loan to one with a significantly lower interest rate attached to it.

The easiest way to locate the best local rates with which to refinance a loan is to check online rate tables. These tables, which are updated multiple times a day, typically feature lenders who offer rates well below the national average.

Mortgage Rates on the Rise, Act Quickly to Refinance

The national average 30-year fixed mortgage rate rose to 4.74%, its highest level in four months, despite having hit a low of 4.43% just four weeks ago, according to Informa Research Services’ Interest Rate Review. Because of this, Informa Research Services, a subsidiary of Informa plc (LSE: INF), suggests homeowners who were waiting for rates to fall lower act quickly before rates increase much more.

Even though rates seem to be increasing overall, the lowest rates in your area can be quickly located online. Useful online tables, such as those found on MonitorBankRates.com, make rate shopping a quick and easy process. With just the property zip code and an estimated loan amount, these online tables make comparison rate shopping a snap. Furthermore, by using the column titles, users can sort loan offers by features such as rate, APR, points, and estimated monthly mortgage payment. This can also be extremely helpful in ensuring that your desired mortgage will fit well into your budget.

Whether purchasing a new home or refinancing a current home loan, shopping for the lowest rate online is the best way to ensure you get the best rate available no matter where rates currently stand.

A Low Credit Score Will Likely Increase Mortgage Cost

There are a number of things that can affect the cost of a consumer's mortgage, but one major contributing factor that is frequently overlooked is their credit score. Informa Research Services, a subsidiary of Informa plc (LSE: INF), suggests consumers protect their credit score and shop around for the best rate to minimize the cost of their mortgage.

Freddie Mac and Fannie Mae introduced "risk-based pricing" in 2007, meaning that consumers who have a lower credit score will be subject to higher interest rates than those whose credit rating is better. In addition, many lenders have tightened restrictions on who they will grant loans to in an effort to cut down on their losses due to defaulted loans.

"Consumers with a score as low as 620 can sometimes qualify for conventional financing, but they will pay a higher interest rate and points," said Gibran Nicholas, chairman of the Ann Arbor-based CMPS Institute, which trains and certifies mortgage bankers and brokers, to the Detroit News.

According to the report, consumers with a credit score of 740 will get the best rates available, and below that, there is a new pricing tier every 20 points.

In addition to keeping their credit score high and credit history clean, consumers should also shop around for the best rates. Hundreds, perhaps thousands, of dollars can be saved by finding the lowest available rate. The easiest and fastest way to find the best local rates is to check online rate tables.

Refinances Continue to Decline as Rates Rise

During the last week of November, fewer consumers applied to refinance their home loans, continuing a multi-week trend in the housing market. At the same time, the national average mortgage rate continued to rise slowly according to the latest data from Informa Research Services, a subsidiary of Informa plc (LSE: INF). Informa Research Services suggests consumers look online to find a low rate with which to refinance their home loans.

The total number of consumers who applied to refinance their mortgage fell 21.6% during Thanksgiving week from the previous period, according to the latest statistics from the Mortgage Bankers Association (MBA). It was the third decrease in a row, and allowed the Refinance Index to drop to the lowest level observed since June.

Meanwhile, the seasonally adjusted number of Americans who applied for new mortgages climbed once again, this time by 1.1% over the previous week, the report said. In doing so, it reached its highest level since May.

However, because refinances have traditionally made up such a large share of the home loan market, the total Market Index fell 16.5% last week, the report said.

If consumers are shying away from refinancing because mortgage rates have begun to climb, they should check online rate tables to find great local rates. Many of the lenders featured on these useful tables offer rates well below the national average.