Informa Blog of Interest

Make Your New Year’s Resolution a Financial Success

2010-12-22T13:39:00.000-08:00

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

2010-12-20T14:06:00.000-08:00

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

2010-12-16T14:44:00.000-08:00

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

2010-12-08T14:18:00.000-08:00

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

2010-12-07T14:37:00.000-08:00

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.

Mortgage Tax Break May Get the Axe

2010-12-06T14:23:00.000-08:00

With the federal government continuing to rack up debt at nearly exponential rates, a bipartisan panel tasked with reducing the problem recommended cutting a number of tax breaks, including the one that allows homeowners to deduct the interest paid on their home loan. Since this may cause homeownership to become more costly, Informa Research Services, a subsidiary of Informa plc (LSE:INF), suggests consumers consider refinancing their current home loan to lower the cost of owning their home.

The suggested cuts included a proposal to eliminate a provision that allows consumers to deduct their mortgage interest from their year-end taxes, according to a report from CNN Money. By cutting the credit, it may save the Treasury Department about $131 billion per year. However, efforts to eliminate the measure are being met with considerable opposition.

"We will fight this proposal," Joe Stanton, chief lobbyist for the National Association of Home Builders, told the news site. "From everything we've read, it will end up being a tax hike."

Taxpayers can currently deduct the interest their mortgage accrues up to $1 million of their principal on primary and secondary residences, as well as on home equity loans of up to $100,000, the report said.

Consumers who want to save on their mortgage may benefit from exploring their refinancing options. Homeowners who check the most updated online mortgage rate tables can find the best rates in their local areas and potentially save hundreds of dollars each month.

Don’t Let Your Mortgage Gobble Up Your Paycheck

2010-11-12T14:28:00.000-08:00

This Thanksgiving, can you be thankful for being a smart homeowner and properly incorporating housing costs into your budget? If your mortgage payments are becoming difficult to make, instead of hustling out to the Black Friday sales next week, Informa Research Services, a subsidiary of Informa plc (LSE: INF), suggests you get your finances in order for 2011 by shopping online rate tables to find the best mortgage rates!

Since rates have continued to decline and remain at record low levels, now may be a great opportunity to refinance your current home loan. The current national average on 30 year fixed rate mortgages fell to 4.43% this week according to data from Informa Research Services’ Interest Rate Review. Historically, these rates are incredibly low, and online rate tables may be the easiest and fastest way to locate the best rates in your neighborhood.

Furthermore, because the aforementioned figure is a national average, this means there are a number of lenders who offer even lower rates. For instance, AimLoan.com currently offers a 30 year fixed rate mortgage at just 4% (with no points).

By refinancing a higher interest mortgage loan with a low rate one, homeowners can save hundreds of dollars a year by lowering their monthly mortgage payments. This saved money can go toward paying down other debt or building your savings, for which you can be thankful all year long.

Use Online Rate Tables to Find Great Rates, Protect Personal Information

2010-11-12T14:26:00.000-08:00

Recently, the computer security experts at McAfee published a list of the top ten riskiest places to give your social security number. Many of the places were surprising, with the top five places including hospitals, state and local governments, financial institutions, and universities. Luckily, finding great rates on mortgages, credit cards, savings accounts, and auto loans doesn’t require any sensitive information. Informa Research Services, a subsidiary of Informa plc (LSE: INF), suggests consumers use online rate tables to shop for the best deals while keeping their personal information safe from potential identity theft.

There are many websites that claim to retrieve mortgage rate quotes, but only upon submitting personal information. This can be problematic because once submitted, your information may be distributed to multiple banks or mortgage companies, none of which you chose to receive your information or contact you about your loan inquiry.

However, online rate comparison tables such as those offered by ERATE.com only require basic screening information, such as property location, estimated loan amount, and preferred loan type. When you decide to proceed with the loan approval process, by choosing to use online rate tables to shop for rates, you control who receives your information.

Mortgage Rates Increase Slightly, Still Low Overall

2010-10-26T14:47:00.000-07:00

Mortgage rates across the board have bumped slightly higher this week according to the most recent data from Informa Research Services, a subsidiary of Informa plc (LSE: INF). Since it is uncertain whether rates will drop back down after this week’s slight increase, consumers should check online rate tables regularly to find the best mortgage rates currently available.

While the national average rate on 30 year fixed mortgages rose to 4.44% this week, this is still 81 basis points lower than the average six months ago. Furthermore, despite this slight increase, rates still remain low and highly attractive for potential homebuyers.

For those who are looking to refinance into a fixed rate loan or perhaps a mortgage with a shorter term, the national average rate on 15 year fixed mortgages remains low at 3.90%. One year ago, this same figure was 75 basis points higher at 4.75%. This may be a good opportunity for some consumers to refinance into a shorter term low rate fixed rate mortgage without increasing their monthly payment by much, if at all.

Because these figures are national averages, this means there are a number of lenders offering mortgages at rates both higher and lower than these. For instance, AimLoan.com offers a 15 year fixed rate mortgage with no points at just 3.50%.

Use the convenient rate tables featured on ERATE.com to find the best local mortgage rates from a variety of lenders.

Don’t Let the Cost of Halloween Haunt You

2010-10-25T15:08:00.000-07:00

According to the National Retail Federation (NRF), this year Americans plan to spend over $65 on average per person for Halloween. For most, spending this amount of money per person for a single night would be a bit over budget. Informa Research Services, a subsidiary of Informa plc (LSE: INF), offers some suggestions to help take the scary cost out of your Halloween festivities!

Recycle costumes from last year
The NRF’s report found that of the $65, about $23 would be spent on a costume for the frightful night; this means dressing a family of four could cost nearly $100. By recycling costumes from year to year, consumers can cut the cost of Halloween significantly. Sure, maybe it’s not as exciting to wear the same costume as last year, but when one considers the overall cost, it may be a welcomed alternative. Since kids rarely want to wear the same costume multiple years in a row, consider exchanging hand-me-down costumes with neighboring families.

Make your costume from items you already own
Instead of buying a pre-made costume, consumers should think about using the clothes they have and making or purchasing accessories to complete their costume. By saving money on costumes, consumers can invest that money in your children by starting or contributing to a savings account for them. To make the most of this effort, consumers should use online rate tables to find a high yield savings account to deposit the funds in.

Celebrate at home
Another way to lower the cost of Halloween is to host a get together at home and ask everyone to bring a food item for a potluck-style feast! Recycle decorations or if consumers do purchase them, they should make sure they are reusable. According to the NRF, consumers plan to spend on average nearly $20 on Halloween decorations. Simply put, there is no reason to buy new Halloween decorations every year. Informa advises consumers put that money into savings and watch it grow into something much more useful like a nest egg or college fund!

Buying a Home? Find a Perfect Fit This Fall

2010-09-24T15:15:00.000-07:00

Fall is finally here. Pumpkin spice lattes have arrived and the days are getting shorter. Many consumers may be revamping their wardrobe to be more appropriate given the colder temperatures heading our way. However, unlike fashion, your home purchase should be in season all year long, for many years. Informa Research Services, a subsidiary of Informa plc (LSE: INF), offers some tips to help you find a home that is a perfect fit!

Find a Style that Flatters You (and Your Budget)
When figuring out how much to spend on a home purchase, it is important to take a close look at your budget to ensure you can handle the monthly payments. Don’t budget away every single dollar. Instead, leave room for error and unforeseen emergencies.

When choosing a type of mortgage, be sure to thoroughly research the various types available. Learning about how each type of mortgage is paid off should help you make an educated decision. Many lenders, such as AimLoan.com, offer a variety of home loans with rates well below the national average.

Find the Right Size
You should look for a home that suits both your family and your budget. The general rule of thumb is that up to a third of your gross annual income should be spent on housing. Another easy way to figure out an approximate housing budget is to deduct your regular necessary expenses (such as food, utilities, car payments, etc.) from your gross income. What remains should give you a good idea of how much you can afford to spend on monthly mortgage payments. Remember that the cost of a home also includes costs such as maintenance and utilities, which tend to increase with the size of the home.

Shop Around for the Best Deal
Much like finding the best deal on a new outfit, shopping around for the best deal on a mortgage can save you a significant amount of money. Likewise, smart homebuyers should look online at comparison rate tables such as those featured on ERATE.com to quickly locate and compare the best deals on mortgages in their area.

Find the Best Local Mortgage Rates from the Comfort of Your Bed

2010-09-24T15:12:00.000-07:00

With the temperature outside dropping just about as fast as mortgage rates, many consumers may feel the urge to find the best home loan despite the ugly weather. Luckily for those who want to spend all day donning warm pajamas and stay wrapped in blankets, convenient rate tables on sites such as MonitorBankRates.com make shopping for a mortgage easy to do from the comfort of your cozy abode. Informa Research Services, a subsidiary of Informa plc (LSE: INF), advises consumers on how to make the most of these convenient tables.

One of the most obvious features of these tables is how simple they are to use. No personal information is needed and consumers can search rates as frequently as they want without worry. Consumers only need to know their loan amount and the location (either state or zip code) of the property they plan to purchase. Using these criteria, the tables on MonitorBankRates.com can quickly search and list available loan options on a single table.

After submitting general information, users can use additional tools to narrow down their search results. They can even sort the results by rate, APR, points, or estimated monthly payment. Using these tools, users should be able to quickly find the best mortgage loan to use for their planned home purchase.

In addition to being easy-to-use, these tables frequently feature lenders who offer rates well below the national average. For instance, AimLoan.com is currently offering a 30-year fixed rate mortgage at just 4.25% with no points, which is over 0.25% less than the low current national average according to Informa Research Services.

So go ahead and stay in your pajamas, keep those slippers on, and pour yourself another cup of coffee. Temperatures and local mortgage rates alike are low, so it is the perfect time for you to shop for rates online!

Put Your Savings on Autopilot for First Class Results

2010-09-24T15:05:00.000-07:00

Usually, when starting a savings plan, the hardest part is remembering to add money to your savings account. However, scheduling these contributions using automatic transfers can take this factor out of the equation. Informa Research Services, a subsidiary of Informa plc (LSE:INF), suggests consumers use high yield savings accounts and automatic transfers to ensure their savings account successfully takes flight!

Know where you’re going. It helps to have a goal in mind when your savings program is taking off. Your goal can change, but it’s vital to set one so you have a destination in mind. Figure out how much you can save per month or per paycheck in order to reach this goal. Be realistic when setting these goals and deciding how much of your budget to dedicate toward your savings.

Make certain you have the right vehicle for your trip. Find a high yield savings account to maximize your results. The easiest way to locate the best rates in your area is to look at online rate tables such as those featured on ERATE.com. Even though savings rates may not be sky-high right now, many financial institutions continue to offer promotional rates, which are typically much higher than their normal rates. It can be very advantageous to use these types of accounts to build your savings, as long as the product is appropriate for you and you understand the requirements to earn the higher interest rate.

Once you’ve found a suitable high yield savings account to use, schedule automatic transfers from your paycheck or checking account to your savings account. This will ensure regular contributions are being made to your savings, even when you forget about it.

Now sit back, relax, and enjoy your trip. With regular contributions and a great savings account rate, you’ll be to your destination before you know it.

Fun, Creative Date Ideas Make Being Frugal Sexy

2010-08-27T15:23:00.000-07:00

If you were being set up on a blind date with someone described as “frugal,” what words would come to mind? In a recent survey by ING Direct, “3.7 percent answered ‘sexy,’ while 15 percent picked ‘boring’ and 27 percent chose ‘stingy’” (Source: New York Times). Considering the current economy, frugality and financial savvy should be the newest additions to the list of attractive attributes for a prospective sweetheart. Informa Research Services, a subsidiary of Informa plc (LSE: INF), suggests some fun dating ideas that won’t put you on bad terms with your date or your bank account.

It is important to remember that when dating, your focus should not be on the amount of money spent, but instead on the quality of time you are spending with your special someone. Here are some budget-friendly dates that won’t break your bank:

• Visit a museum. Depending on your date, a museum can be a fun choice of venue for getting to know each other a little better. Some museums, such as the Getty Museum, are free all the time. Check each museum’s website to get details on admission prices and to see if they offer free or discounted admission at certain times throughout the month.
• Go for a walk or a run. Find a fun part of town where you can take a stroll among shops and restaurants while engaging in casual conversation. People watching can be a great conversation starter! If you are both into sports, a run along the beach can be a fun way to get some together time while getting your workout done.
• Take advantage of happy hour deals. Even if you don’t drink, most restaurants offer great deals on their appetizers and food. Furthermore, these promotions usually do not require coupons.
• Look online for deals and coupons. Look to the Internet to find great deals on dining and adventures. Sites such as Groupon, Restaurant.com, and LivingSocial offer deeply discounted deals on restaurants, spas, and sports for major cities around the country. Sign up for their email newsletters to stay informed of the latest deals.

Speaking of searching the Internet, online rate tables found on sites such as ERATE.com make it easy to find local banks and credit unions offering great rates on savings accounts, which can help maximize the benefit of your conscious frugality. For instance, American Express is offering a high-yield savings account that earns 1.30 percent annually. This is over three times the current national average, according to Informa Research Services weekly interest survey (Source: Informa Research Services’ Interest Rate Review).

Smart Parenting Tips Can Help Both Parents & Savers

2010-08-27T15:18:00.000-07:00

Raising a child is an experience like no other, as many parents (especially new ones) will gladly tell you. As Informa Research Services, a subsidiary of Informa plc (LSE:INF), suggests, nurturing your savings accounts is by far a much easier task, and can be done by following many similar guidelines as one might follow when parenting.

Build good habits. Just like teaching a child to wash his or her hands after using the restroom, building good habits is important in savings as well. For instance, make a habit of scheduling automatic transfers into a savings account. Another good habit to adopt is creating your budget based on your income after your savings is taken out. This way, a contribution to your savings account is always accounted for and should not be easily overlooked.

Read regularly. Everyone knows the benefits of reading to your child daily, but what about the benefits of reading finance tables regularly? Looking at online rate tables regularly will give you a good idea of where rates are and many times, where they are heading. Sites such as ERATE.com provide online rate tables that make comparison shopping fast and easy.

Start early. Getting your child into activities such as dance, sports, or music, at an early age helps them excel. Starting early may be one reason some kids do better than others. Likewise, to get the most out of your savings efforts, start saving early so that you allow your account time to grow and accrue interest. Time will work in your favor when building your savings.

Find Savings Rates 3x the National Average Online

2010-08-25T15:29:00.000-07:00

Both mortgage and savings rates alike continued to fall this week, according to Informa Research Services’ Interest Rate Review. With national average rates continuing this downward trend, Informa Research Services, a subsidiary of Informa plc (LSE:INF), advises consumers to look online to snag the best rates as soon as possible before they fall further.

By using online resources such as MonitorBankRates.com, consumers can quickly locate the best savings and loan products available. Not only does this site offer consumers market insight and educational articles, but they also host a variety of product rate tables. These tables are very easy to use and don’t require any personal information from an interested consumer. Instead, all that needs to be entered is basic information (such as location) that may affect loan and savings product selection and availability.

The financial institutions featured on these tables frequently offer rates better than the current national average. For instance, American Express is offering a high-yield savings account that earns 1.30% annually with no fees and no minimum amount to earn this great APY. For comparison, the current national average on similar products is just 0.37% (Source: Informa Research Services, Interest Rate Review). By checking online rate tables on a regular basis, you can be sure you don’t miss out on great deals like this!

In addition to being convenient, these online tables also make comparison shopping for financial products easy. These tables lay out similar products from various financial institutions for quick comparison.

Walk, Hike, and Bike to Big Savings This Summer

2010-07-30T10:41:00.000-07:00

In the spirit of being green and saving money, try something new and ditch the car for a few days this summer. A vacation from your vehicle may be just what you need to appreciate your city again. Here are a few ideas to get you started on your car-free escape:

Take a walking, cycling, or running tour. Many major cities offer tours via foot or bike, or create your own. Pick a few destinations you’d like to visit along your route and use Google maps to plan your trip.
Use alternatives to a car when possible. Take advantage of the lovely weather outside this season. In addition to being environmentally friendly, walking, hiking, and biking are all great workouts!
Enjoy summer at home. Some of the best things about summer are free (or almost free). Simple things such as gardening on a sunny day or reading a book outside in the fresh air can be welcomed mini-escapes from the daily grind.

By consciously leaving your car at home when possible, you will save money on both gas and vehicle maintenance, while also doing your part to lessen pollution.

What should you do with the money you save, you ask? The easiest way to make the most of the money you save is to deposit it into a high yield savings account. Keeping money saved in a savings account with an attractive APY will help it grow by earning interest. Even though rates may not be at historical highs, financial institutions frequently offer promotions that include bonus rates. Take advantage of these and read all the fine print to ensure you fulfill the necessary requirements to earn the highest APY.

Save for Christmas in July

2010-07-16T10:22:00.000-07:00

July may mean barbeques and swimming pools for most, but for the savviest savers, July signals that it’s time to start saving for the holidays! Instead of feeling the pain of holiday gift-giving all at once, these savers set up savings accounts dedicated to collecting funds to spend on loved ones during the holidays. Informa Research Services, a subsidiary of Informa plc (LSE: INF), offers a few tips to help consumers get their holiday savings started:

Set a savings goal
A good way to start your Christmas savings plan is to set a goal. Make a list and figure out how much you would like to spend on gifts for each loved one. Setting a savings goal can help you figure out how much you need to save each month and monitor your progress.

Look for a high yield savings account
The account you use for your savings could be a traditional savings account, money market account, or short term certificate of deposit. In any case, the higher the APY, the better. The fastest way to find the best local rates is to search online. Use online rate tables, such as those provided by ERATE.com, to quickly sort and locate the best rate offered in their area.

Schedule automatic deposits
Life gets busy, and simple tasks, such as transferring money into your savings account can get easily pushed aside. However, scheduling automatic transfers can save you the stress and hassle of trying to remember to do it manually. Another perk of using auto-transfers is that it is one way to get the monthly maintenance fee on your checking account waived at some financial institutions. Combined with a high yield savings account, consistently making regular contributions will help your holiday savings fund grow!

Using these simple tips, you should amass a fairly sizeable fund from which to finance your Christmas gifts and other holiday costs. Lessen your holiday stress so you can enjoy the time with your loved ones and remember what the season is really meant to be about.

Grill Up Healthy Finances This Fourth of July

2010-06-29T18:56:00.000-07:00

The fourth of July is right around the corner and grilling season is in full swing! While the grill may be a seasonal cooking tool for some, keeping your personal finances perfectly tuned is always in season. Here are some tips from Informa Research Services, a subsidiary of Informa plc (LSE: INF), to help consumers from burning through their money this summer.

Refinance to a low mortgage rate for direct savings
With rates at their lowest in years, some homeowners could benefit considerably by refinancing their current mortgage to one with a lower interest rate. Look at online mortgage rate comparison tables, like the ones found on RealtyTrac.com, to find the best local mortgage rates. These tables frequently feature lenders such as AimLoan.com who offer mortgage rates frequently below the current national average. For instance, the national average rate on a 30-year fixed rate mortgage currently sits at a low 4.82%, according to the Informa Research Services’ Interest Rate Review. AimLoan.com is currently offering a 30-year fixed rate mortgage rate of just 4.500% (with no points).

Search online for sizzling savings rates
Everyone knows saving money is a good idea, but many forget they can be earning a little bit extra just by leaving their money in a high yield savings account. While savings accounts aren’t boasting record yields as of late, good rates can be found by shopping online.

For the highest earning yields, savers can look to short term certificates of deposit (CDs), money market accounts, and even promotional rates offered by financial institutions. Short term CDs and money market accounts allow consumers to maintain financial flexibility while still taking advantage of higher rates. Promotional rates are also a great way to get a better APY; however, be aware of the conditions required to earn the promotional rate.

By following these simple tips, you’ll quickly find you’ve lit your finances on fire and burned through your debt.

Fannie Mae's HomePath® Program Offers Great Financing Option for Homebuyers

2010-03-31T11:26:00.000-07:00

With low interest rates, low housing prices, and tax-incentives currently available, it’s a great time to look into purchasing a home for those who are in good financial shape, according to Informa Research Services, a subsidiary of Informa plc (LSE: INF). In addition to these options, programs such as Fannie Mae’s HomePath® Mortgages, can supplement the already ideal conditions for potential homebuyers.

The HomePath® program provides financing options for a home purchase through their HomePath® Mortgage, which includes features such as a low down payment requirement, flexible terms, and no appraisal fees. The HomePath® Renovation Mortgage is also available with similar attributes and is meant to help finance both the property purchase and light renovations. Eligible Fannie Mae-owned properties on which these financing options can be used are listed on the HomePath® website (http://www.homepath.com). Not all lenders are certified to structure this type of loan, but lenders such as CapWest Mortgage offer competitive pricing and can provide additional information about this program.

Furthermore, earlier this year, Fannie Mae announced that consumers who purchase a designated Fannie Mae-owned HomePath® property prior to May 1, 2010 can receive up to 3.5% of the final sales prices to cover closing costs, select appliance purchases, or both.

If neither of these financing options is well-suited for you at this time, or if you already own a home, you can still find great deals on both purchase and refinancing rates by looking online.

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Refinance Your Mortgage: How Much Could You Save?

2010-02-24T12:49:00.000-08:00

According to Informa Research Services, a subsidiary of Informa plc (LSE: INF), the national average rate on a 30-year fixed mortgage loan remains steady at a scant 5.18%. With rates hovering so low, consumers may want to consider refinancing their home loan depending on their current mortgage.

By refinancing their mortgage, consumers can save money immediately by lowering their monthly mortgage payment as long as the refinanced mortgage carries with it a lower APR. For instance, if a consumer is paying 6.000% on their current mortgage and they are able to refinance it with a loan with an APR of just 4.750%, for a $200,000 loan, consumers can save over $150 a month! Over the course of a year, this quickly accumulates to nearly $2,000!

To find the lowest refinancing rates currently available, refer to the rate tables featured on FreeRateUpdate.com. By using their regularly updated tables and their search filters, consumers can quickly locate the lowest rates available and start saving money on their mortgage. In addition to having convenient search features, these tables feature reputable lenders, such as AimLoan.com, who offer rates well below the already-low national average.

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Why Choose an FHA Mortgage Loan?

2010-02-19T10:29:00.000-08:00

Depending on the type of mortgage, Informa Research Services, a subsidiary of Informa plc (LSE: INF), recommends the Federal Housing Authority (FHA)-backed loans as a possible source of financing. FHA loans are different from conventional financing, as FHA doesn’t make the loans, but instead offers insurance against default.

Some may ask, what are the advantages? The FHA program was designed to make the home buying process easier and less expensive. Many of the more obvious advantages of choosing FHA include minimal down payment (depending on credit score) and more relaxed qualifying guidelines. In recent months, however, FHA guidelines have changed. For information on announced FHA policy changes, refer to the U.S. Department of Housing and Urban Development website at http://www.hud.gov.

An FHA loan could be a very good option for first time homebuyers but this loan type is not limited to first timers. Anyone who meets the criteria could possibly qualify, as long as they do not already have an FHA-insured loan at the time.

The fastest and easiest way to find the lowest FHA rates available in your area is to refer to sites such as FreeRateUpdate.com that present multiple lenders and their FHA rates on a table with sorted columns.

With this in mind, all consumers should check out online rate tables to find the lowest rates currently available. These tables frequently feature lenders, such as AimLoan.com, who regularly offer rates on popular mortgages that are well below current national averages.

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Could You Be Doing More with Your Money?

2010-01-13T12:09:00.000-08:00

It is no secret that many consumers may be low on cash right now, but could they be paying less to borrow, and receiving more when they save? Look at rates regularly to stay aware of what rates are available.

Mortgage
Lenders, such as AimLoan.com and Bank of America, are still offering attractive rates well below the current national average of 5.29% (Source: Informa Research Services' Interest Rate Review). Depending on your individual situation, now may be a good time to think about refinancing your current home loan. The best way for homeowners to scope out current refinance mortgage rate offerings is to look at online rate tables, such as those found on ERate.com.

Savings
Numerous banks and credit unions offer promotional rates that are much higher than regular rates. You shouldn't hesitate to take advantage of these rates. More often than not, these promotional rates are only granted upon the completion of various other tasks, such as online banking, a minimum number of debit transactions, or automatic deposits. Use the internet to quickly locate the best deal in your area.

Credit Cards
Credit cards are notorious for having low- or zero-percent introductory APRs before skyrocketing to double-digit APRs. It is a good idea to check online card comparison tables to see what offers are currently being offered. If you have good credit, there’s no reason to pay more than necessary to use your line of credit. Furthermore, new credit cards come out all the time, and frequently with new, exciting benefits for the credit savvy spender.

Consumers should regularly check what rates are available. The best way to do this is using online resources that aggregate current offers on a regularly updated comparison table.

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Use Twitter to Save Money: 4 Tips to Get Started

2010-01-11T13:10:00.000-08:00

As one of the most popular social media trends of the past year, nearly everyone has heard of Twitter. From travel to banking, Twitter can be used to find the best deals available. Familiarize yourself with Twitter this year and use it as a resource to save some money:

On your favorite things: Follow the brands you like.Popular retailers are taking advantage of social media such as Twitter and Facebook to market their products, and, many times, they will offer deals publicized solely through social media. For instance, Dell (@DellOutlet) made headlines when it first began offering Twitter-only deals and currently attributes over $6.5 million in sales to this online presence. Some of my favorite brands include:

Jet Blue Airlines (@JetBlueCheeps)
Amazon (@AmazonDeals)

At home: Follow companies for deals and free information. The Internet and social media are great equalizers. Now large and small businesses alike can now be big fish online without spending a fortune on traditional marketing. While some use social media to provide customer service, many businesses also offer a wealth of information and advice for free. Consumers should take advantage of this easy access to reputable information. For instance, if I wanted to shop for low mortgage rates or was researching purchasing a home, I’d follow resources such as:

Free Rate Update (@FreeRateUpdate)
Best Cash Cow (@BestCashCow)
Mortgage 101 (@Mortgage101com)

On everything, everywhere: Follow deal aggregators. Instead of following all your brands, you can also have someone else collect the deals and put them in one place for you. Some of the most popular bargain aggregators are:

Dave’s Deals (@Daves_Deals)
BOGOPOD (@BOGOPOD)

Use Twitter Search to find other deals. Search money-saving hashtags on http://search.twitter.com to find more deals. Some good hashtags to search for are:

#coupon
#freebie
#sale
#bargain

By strategically using Twitter, you can find deals nearly everywhere and on anything!

Weather the Storm: Get the Best Rates

2010-01-08T14:30:00.000-08:00

Rain, snow, and below freezing temperatures are plaguing many parts of the country right now, but that is no reason to neglect your finances. You can use online resources such as Yahoo! Real Estate and Interest Matters to shop for the best rates on your loans and savings products without even stepping outside your door.

Mortgage
Looking online can help you find rates well below the national average, which currently stands at a low 5.33% for a 30-year fixed mortgage according to Informa Research Services’ weekly rate survey. For instance, AimLoan.com currently offers a 30-year fixed mortgage at 4.875%; this rate drops as low as 4.500% when paying points.

For some homeowners, now may be a good time to think about refinancing a current home loan. Lenders, such as Bank of America, are offering competitive mortgage refinance rates. Check online rate tables to find the best deal available in your neighborhood.

Savings
Savings accounts today may not offer high rates like they did ten years ago. However, that doesn’t mean you should not look for the best rate available. Check out the rate tables on Interest Matters to quickly compare and locate the savings product for you!

Even if the weather is less than desirable outside, there’s no reason you shouldn’t use your time indoors to find financial products that will help your wallet see sunnier days!

First Week of 2010 Sees Relatively Steady Mortgage Rates

2010-01-07T12:23:00.000-08:00

After months of remaining low, mortgage rates began to rise slowly during the closing weeks of 2009. However, this week, rates held steady for the second week in a row with the national average rate on a 30-year fixed mortgage at 5.33%.

Mortgage Rates: Up or Down?
It is hard to say if rates will continue to see a steady rise continuing into 2010, but competitive rates are still currently available. Some of the best rates are well below the current national average. For instance, AimLoan.com offers rates as low as 4.875% on a 30-year fixed mortgage; by paying points, this rate can drop as low as 4.625%.

Low Rates: Where to Find Them
The most efficient way to compare rates is to look online. Rate comparison tables, such as those found on FreeRateUpdate.com, compile rates currently offered by various lenders on a single table so it becomes easy to see which lenders offer the best deals.

The best way to get a low rate on your mortgage is to monitor rates on a regular basis, and the most convenient way to do this is by quickly checking online rate tables. After doing this for a few weeks, it will become clear when rates begin to move.

Score Low Mortgage Rates Online

2009-12-31T11:07:00.000-08:00

The Wall Street Journal recently reported that while retail sales remained relatively flat this year, online sales grew 4% since 2008 stating “price and convenience” as major factors in this growth. Informa Research Services, a subsidiary of Informa plc (LSE: INF), reminds consumers that online shopping doesn’t have to be relegated to just books, CDs, and clothes; the Internet is one of the best places to find rates on mortgages this season.

Like shopping for gifts, the Internet allows consumers to quickly compare a number of products at the click of a mouse. Many times, the deals found online can save consumers lots of money. Mortgages are no exception.

With the current national average on a conforming 30-year fixed rate mortgage (FRM) at 5.33%, it comes as no surprise that many of the lenders that populate these online tables, such as those found on Yahoo! Real Estate, offer low rates. Moreover, these lenders frequently offer rates well below the average. For instance, AimLoan.com is offering rates as low as 4.625% on a 30-year conforming FRM.

Furthermore, Bank of America’s refinance rates are competitive and can save a homeowner a formidable amount of money in the long run if they have a mortgage at a much higher rate. Because rates are low, this might be a good time to consider refinancing your current home loan for one at a lower rate. Find current rates available in your area.

Start 2010 Right: 3 Simple Financial Resolutions To Keep in the New Year

2009-12-30T13:59:00.000-08:00

With post-holiday debt on the rise, you may have "managing their finances better" atop your list of New Year’s resolutions. Other resolutions may be lost as the year progresses, but being financially savvy is one change that will provide rewards all year long. Here are 3 easy ways to improve your money matters this year:

Find a low-percent APR card – Shop for a credit card with a low- or zero-percent APR for the life of the card. Remember, your goal is to avoid paying excessive finance charges and fees to work toward paying off your entire balance.

Use your debit card to pay for purchases – Debit cards have become the modern day form of cash, and like cash, your debit card can be used to avoid racking up debt because spending is restricted to the funds that are available in your account. They’re compact, reliable and universally accepted by everyone. Both retailers and consumers benefit from knowing the money will be there once charged.

Open a savings account with a high interest rate – Make a habit of putting a little bit of money away in your savings account every month. There are some high-yield savings or money market accounts which offer the flexibility of a low minimum opening balance or allow adding funds in small increments. Furthermore, scheduling automatic deposits will ensure your savings continues to be built throughout the year.

This year, manage your finances before they manage you. Using these simple tips can help you become debt-free and prosperous in 2010!

Special Financing Available on Fannie Mae Homes Through HomePath® Mortgages

2009-12-23T13:13:00.000-08:00

Special financing is available through the HomePath® Mortgage and Renovation Mortgage on properties owned by Fannie Mae in the HomePath® database. These HomePath® financing programs offer features such as low down payment, flexible mortgage terms, no mortgage insurance, and no appraisal fees. When shopping for mortgages, Informa Research Services, a subsidiary of Informa plc (LSE: INF), suggests starting online to find the best rates.

The HomePath® Mortgage is available on designated Fannie Mae homes, which you can browse online at HomePath.com. This financing is available from both local and national lenders. To find the lenders with the best mortgage rates and find out more about a HomePath® Mortgage, check online.

Additionally, the HomePath® Renovation Mortgage provides special financing on the property you make your primary residence that not only funds the purchase of the home, but also assists with light renovations.

Not all of Fannie Mae’s real estate owned (REO) properties are eligible for the HomePath® financing and not every lender is certified to structure this type of loan. Some lenders, such as AimLoan.com, offer competitive rates and can provide more information regarding this program.

From mortgages to certificates of deposit, the fastest way to find the best rates for your financial products is to look online at rate comparison tables like those found on MonitorBankRates.com. Since these tables are updated continuously throughout each day, they provide the most current rates available.

Mortgage Averages up Slightly from Last Week

2009-12-22T14:26:00.000-08:00

After weeks of floating closer and closer to five percent, the national average rate on a 30-year fixed conforming mortgage increased slightly this week from 5.06% last week, to 5.14%, according to Informa Research Services’ weekly survey of interest rates. While the average remains low, there are far lower rates available to qualified borrowers. Informa Research Services, a subsidiary of Informa plc (LSE: INF) suggests looking to online tables to find the best deals.

Checking online rates tables, like those found on Yahoo Real Estate, can help consumers discover lenders with rates below the national average. For instance, all of the 30-year fixed rates currently posted by AimLoan are well below the national average.

Furthermore, unlike some sites, these online resources require only minimal information to retrieve mortgage rates to fit your unique situation. Usually, the only information needed to see what low rates you may qualify for is loan amount, property value, and location of the property.

Is It Time To Refinance the Mortgage?

2009-12-18T14:29:00.000-08:00

There are many factors to consider when first structuring a home loan. But which considerations are important when it's time to refinance your mortgage? According to Informa Research Services, a subsidiary of Informa plc (LSE: INF), there are several key components that should come into play when deciding if refinancing your mortgage loan is the best choice. As when shopping for all bank products, the best place to start is to shop online for mortgage rate information.

Saving Money Right Now
Refinancing for a lower monthly mortgage payment or to change the terms/length of your loan may prove beneficial to you if you are interested in saving money right now. For example, if you are currently paying 6.000% for your current loan, Bank of America is offering a refinance rate of just 4.875% with an APR of 4.990% with 0.500 points on a 30 Year fixed program. For a loan of $200,000 this rate will reduce your monthly payment by $126. That is a total savings of $1,520 per year! You can click here to find out more details about this offering.

Debt Consolidation
The interest rate on credit cards is typically much higher than mortgage interest rates. Additionally, mortgage interest paid may be tax deductable (check with your tax advisor). Under the right conditions, it may be a smart idea to refinance your mortgage loan in order to consolidate the debt into one monthly payment.

Adjustable or Fixed
Depending on how long you plan to stay in your home, refinancing to switch from an adjustable rate mortgage to a fixed rate mortgage could be a great move. If you plan to stay in the home for more than 10 years, then a fixed rate is probably the way to go. If you plan to move, or move up, in the near future, an ARM may save you money since the interest rates on this type of mortgage have typically a much lower initial rate.

Cash Out
Perhaps you're thinking about taking cash out of your home, refinancing might be a great option. If you need cash in order to pay for college tuition, wedding expenses, or for repairs/upgrades on your home, then a refinance could be right for you. In order to do this you will need to have a reasonable amount of equity.

Finding the best rates on mortgages is made simple now with online rate comparison tables provided by sites such as Yahoo! Real Estate and MSN Money. By providing basic property information, you can quickly find the best rates available in your area.

Use Rewards Credit Cards to Give & Get This Holiday Season

2009-12-15T14:46:00.000-08:00

Rewards credit cards programs can help take the edge off your holiday spending this year if you use them responsibly. With a rewards credit card, your usual holiday spending could earn you free travel, certificates to your favorite store, or statement credits. Here are some helpful tips to ensure you get the most out of your credit card rewards program this season.

Check card rate and fees.
Before signing up for a rewards credit card, ensure the rate or any annual fees do not nullify the possible rewards. Shop around before applying for a new credit card purely based on the associated rewards program. Online rate tables are one useful tool to help you quickly locate and compare available credit cards. Furthermore, rewards cards may carry with them extremely high annual percentage rates (APRs). If your card does have an extremely high APR, cut unnecessary costs by paying your card in full every month.

Be aware of redemption process.
Credit card rewards programs typically consist of earning points per amount purchased. These points can be redeemed for cashback, travel, or retail rewards. Some programs automatically send you a reward every time you reach the redemption limit, but many require cardholders to request a reward. Be sure you know how to redeem your points & if there are any limits or restrictions. Also, be aware of point caps and expiration periods.

Don't get sidetracked.
Remember that reward programs are supplemental to your regular credit card; do not spend with the purpose of gaining a reward. Be vigilant of your spending regardless of what rewards you may be eligible for after that next statement.

Take advantage of credit cards rewards programs, and treat yourself to a few presents this season!

First-Time Home Buyer Tax Credit Extension and Low Rates Make for a Great Time to Buy

2009-12-15T14:34:00.000-08:00

The President signed a bill that extends the current first-time home buyer tax credit (originally slated to expire at the end of this month) and expands it to include non-first-time home buyers as well. According to Informa Research Services, a subsidiary of Informa plc (LSE: INF), it is a perfect time to shop for a new home and a new home loan.

The original tax credit, up to $8,000, remains in effect until April 30, 2010, and now includes an increased income cap (to be eligible for the full credit). Single tax filers who earn up to $125,000 and joint filers who earn up to $225,000 are now eligible for the full credit. Additionally, homeowners who have owned their current residence for five of the last eight years are eligible for a credit up to $6,500 when a contract is in effect through April 30, 2010, and closes before June 30, 2010.

With tax incentives in place and rates still desirably low, this may be an ideal time to buy a home if you are in the market. According to Informa Research Services Interest Rate Review, the national average 30-year fixed mortgage rate is still at a low 5.140%. One year ago, the national average on the same mortgage loan was 6.31%.

By searching for mortgage rates online, consumers can quickly compare the available rates offered by lenders in their area and find rates that may be much lower than those offered elsewhere. For example, AimLoan is offering a 30-year fixed mortgage at a rate of just 4.750% with an APR of 4.792% with 0 points. This rate offering from AimLoan is 0.348% lower than the national average APR.

Finding the best rates on mortgages is made simple now with online rate comparison tables provided by sites such as FreeRateUpdate.com, BankingMyWay.com, and Roost.com. By providing basic property information, you can quickly find the best rates available in your area.

4 Tips to Help Keep Credit Card Debt in Control for 2010

2009-12-11T15:01:00.000-08:00

In addition to avoiding outrageous finance charges, being a responsible cardholder will also be reflected on your credit. Excellent credit is a must-have, especially with today's credit crunch, when looking to finance (or refinance) a home purchase. Having good credit will qualify you for the best interest rates on both mortgages and credit cards.

1. Be on time, every time.
Make it a habit to pay your bills before the due date. Using options like online bill pay and pay-by-TXT can eliminate the need to submit your payment early via postal mail. Furthermore, new legislation (effective February 2010) states that credit card companies can no longer charge additional fees to make payments. However, this does not include expedited payments, so you still need to be vigilant of due dates.

2. Pay down existing balances.
Carrying an interest-bearing balance on your credit card without making any payments can be lethal to your finances. Thanks to high interest rates and compounding, balances can balloon out of control in a very short period of time. For instance, a balance of $1,000 bearing an annual rate of 20% will double in less than five years.

New laws in place in accordance with the CARD Act may help you figure out how to properly manage your existing balances. New laws state that credit card companies must let you know how long it will take to pay off existing balances if you only make minimum payments, the total amount you will pay (including interest), and how much you need to pay monthly if you want to pay off the balance in 36 months.

Even if you have a large balance looming, making minimum payments is better than not making payments at all. Furthermore, when you can, pay more than the minimum required payment. Laws governing credit cards now state that any payments that exceed the minimum due is to be applied to the balance carrying the highest interest rate first, then to the next highest, and so on.

3. Do not open unnecessary credit cards.
If you have your hands full with your existing credit cards, adding to your credit card collection is not going to help, no matter how tempting the incentive bonuses are. If for some reason, you must open a credit card, be sure it has a lower interest rate than the ones you already use. You can quickly compare interest rates using online credit card tables. However, be sure to read through each card's details and fees before choosing one.

4. Communicate with your credit card company.
If you cannot make your minimum payment, immediately contact your credit card company and explain your situation to them. This is a better option than skipping the payment altogether. Taking immediate action to try and work with your credit card company may help sustain your credit score. This could save you money in the future by qualifying you for the best interest rates on credit cards and home loans.

Budget Gift Ideas: Find Value in Thought, Not Price

2009-12-10T15:19:00.000-08:00

It's that time of year again! With malls overrun with frantic shoppers all vying for treasured parking spots and holiday deals, it becomes easy to forget the real meaning and purpose of this season. We suggest a few different ways to show your friends and family how much you care while staying within a budget.

Gift Others: It's (Not Always) a Material World
The commercial vision of the holidays is chock-full of gifts, but it is important to remember that when it comes to gift-giving, it's the thought that counts. One budget-friendly way to give this year is to donate your time. Perhaps you know a busy mom who could use a night of free babysitting, or maybe your coworker would appreciate you running an errand for them on your lunch break. Think about small favors you can do for someone to make their day a little easier.

If you are short on cash, tap into your creative side and make gifts for your friends and family. Give a neighbor a plate of baked goods or make personalized items such as jewelry, monogrammed stationary, or drinkware. Remember, it is the little things that count.

Gift Yourself: Upgrade Your Account
Do yourself a favor and use online rate tables to upgrade your current checking or savings product. Rates on savings accounts are not sky-high but there may be deals available. For instance, the national average annual percentage yield (APY) on a $2,500 interest checking account is a scant 0.30%, and for money market accounts at $10,000 is 0.48% (Source: Informa Research Services' Interest Rate Review); however, credit unions and banks frequently offer promotional rates that are much higher. If you are willing to follow certain stipulations from a financial institution, there are checking and money market rates with APYs of 5% and higher. By checking rates online, you can find the best rates available in your area and take advantage of such deals.

Save yourself the stress and remember what the holidays are really about. It is not the dollar amount you spend on your loved ones that matters; rather, it's the thought you put into each gift. Be mindful of your gifting this year and your wallet will thank you in 2010!

Protect Your Identity By Using Online Rate Tables

2009-05-19T14:56:00.000-07:00

In these times of financial uncertainty, a healthy credit history and score is necessary to buy a home. As such, your personal information may be sought after by identity thieves. According to Informa Research Services, by shopping for mortgage rates online, not only can you ensure you get the best rate available, but you can also help control who obtains your personal information.

A number of websites can get you a certain number of mortgage rate quotes within a short amount of time (e.g. “Get quotes from four different lenders in just five minutes!”). However, upon submitting your personal information, it may be distributed to a number of banks or mortgage companies, none of whom were personally selected to receive your information or contact you about your loan inquiry.

However, with many online mortgage rate comparison tables, you only need to enter very basic screening information (such as property value, credit rating, and desired loan type) to give you an idea of the rates for which you may qualify. If you choose to proceed with the loan approval process, by using online mortgage rate tables to shop for rates, you are in charge of determining who receives your information and who does not. It is up to you whether you want two or twenty lenders to receive your personal information.

By shopping online for the best mortgage rates, you can feel confident that your personal information is safe and that the rate you get is low.

Fed Leaves Rate Unchanged, But Consumers Can Make Personal Finance Changes to Get Ahead

2009-05-01T09:20:00.000-07:00

Earlier this week, the Fed announced that they would keep the Fed Funds Rate unchanged and possibly increase the size of programs in place to help ease the economy out of this recession. Even though the Fed has decided to keep the target Federal Funds rate unchanged, Informa Research Services advises that consumers make select adjustments to their personal finances to help improve their financial situation.

Refinancing an existing mortgage loan may be a good idea for some consumers. According to Informa Research Services’ Interest Rate Review, 30 year mortgage rates have remained low with the national average down to 5.09% from 6.40% just six months ago. Refinancing a $250,000 30 year fixed mortgage loan from 6.40% to 5.09% can save a homeowner over $200 a month. This money can be put toward lowering debt or fortifying savings. Homeowners should check online to see what low rates are available in their area!

While deposit rates continue to stay low, promotional rates and offers are a great way for consumers to earn high rates and cash bonuses. Many of these offers involve a high annual percentage yield (APY) for a limited period of time or a cash bonus when certain criteria are met. Checking with your local branch and looking at online rate comparison tables are typically the best ways to locate such promotional offers. Be sure to read all details before opening an account.

Consumers should remember that while they cannot control the economy or government actions, there are often actions consumers can take to ensure their money is protected. Being proactive with their finances and keeping an eye on rates are a couple of ways to ensure they make the most of any economic situation.

This Might Be the Right Time for First-Time Homebuyers

2009-04-24T12:32:00.000-07:00

For renters who have been diligently saving money and continually fortifying their savings, right now may be a great time to look into purchasing a home. Government-insured FHA mortgage loans made up 37.8% of purchases in March, putting these loans, commonly used by first-time buyers, at near record levels. A year ago, FHA loans made up 10.1% of all purchase loans. With deflated home values, low rates, and $8,000 in tax credits up for grabs, Informa Research Services offers reasons years of spending conservatively and waiting patiently may pay off very soon

Tax credit to benefit first-time homebuyers
To help first-time homebuyers, many financial institutions are starting to offer interest-free advances of the $8,000 tax credit for use toward the down payment on a home purchase. While it is currently unclear how standard this may become, it looks to be quite popular with many community banks. Consumers should check with their local financial institution to see if they have any similar offers.

Sales slump can give buyers a bump
With median sales prices of homes in most major metropolitan areas declining over the past two years, this is a great time for consumers to take advantage of the slumping economy. According to the National Association of Realtors, the national median sales price of U.S. homes has dipped 12.4% over the past year, and in many areas, the decline in home sales prices has been more pronounced (Source: National Association of REALTORS®).

FHA loans may be best fit for some first time buyers
The Federal Housing Administration (FHA) established FHA loans to help Americans own property by providing mortgage insurance on certain loans. This allows lenders to lower the required down payment and provide funding at an attractive rate. These characteristics of FHA home loans can be very beneficial for first-time homebuyers who may not qualify for other loans.

For instance, many FHA loans require only a 3.5% down payment; however, this means the loan amount may be slightly higher than with a regular loan that would require a higher down payment, in some cases up to 20% down. Thus, it is important for homebuyers to find the best rate available on their loan. Consumers should check convenient rate tables online to quickly find the best offered rate.

Surf’s Up: Hang Ten on Your Savings!

2009-04-07T08:58:00.000-07:00

Despite the Maverick’s Surf Competition being cancelled due to lack of sizable waves this year, spring and summer are just around the corner, which means favorable beach and surf conditions for the rest of us! As different as they seem, catching a gnarly wave isn’t far removed from catching a righteous interest rate; at its core, it just takes proper preparation and patience.

Prepare for the Ride
In surfing, this may include waxing your board and donning your warmest wetsuit or favorite rash guard. In the sport of savings, this would include looking at your finances for any residual income you can use to start your savings.

Paddle Out
In order to catch a wave, you have to paddle out to where the waves are breaking. To begin to look where to open your savings account at, you will need to research where the most competitive rates are (i.e. at your current financial institution or online). Convenient rate comparison tables are available to make your online research easier.

Wait for Your Wave
Like catching a wave, catching the best interest rate sometimes involves patience. Check national averages and compare them to the offered interest rates. Shop around to ensure you are getting the best deal and the product that fits your needs!

Hang Ten (Percent)
To maximize your savings, making sure you have a line item in your budget for a percentage to put away for savings. Even though each person’s budget will be different, a good general rule of thumb is to save at least 10% of your income if you are employed. One way to guarantee this percentage makes its way into your savings account and not your wallet is to schedule automatic transfers or direct deposits.

By incorporating these tips into your savings habits, you will be able to ride the wave of smart savings to some extra cash!

Recycling vs. Interest Earnings: What Makes More Green Cents?

2009-03-26T11:18:00.000-07:00

Is the money you would earn recycling higher than that on a savings account? With the national average annual percentage yield lingering at a dire 0.34%, if you let $10,000 sit in an interest checking account, it would make the same amount as if you recycled 2 cans or bottles a day. Furthermore, if you put that same amount into a money market account earning the national average of 0.68% yearly, you would earn $68 a year, or $0.19 a day (Source: Informa Research Services Interest Rate Review). In other words, you could find 4 recyclables and earn the same amount as your interest would pay you.

But no matter how big the environmental payoff is with recycling, people don’t make their fortune off recycling cans and bottles. If you do your research with online rate tables, and find a savings product that can earn you a competitive interest rate, recycling cans and bottles won’t seem to be so lucrative anymore.

For instance, take the $10,000 from the previous examples and deposit it into a 12-month CD at the national average of 1.68%. This will earn you about $0.46 a day, or just under 10 recyclables. In addition, if you found a 12-month CD to match the national high of 3.46% APY, this would require you to collect 20 cans and bottles daily.

The effectiveness of your savings effort will depend on the amount you have available to invest. For example, even if you managed to find an account that yielded something close to the national high around 6%, if you had only $1,000, you could still make more by recycling just 4 cans daily.

While there’s not set threshold at which interest earnings from a financial institution will always be more profitable than recycling, the best way to figure out which would work best for you is to do the math. There are many interest earning calculators available online that can help you figure out what would work best for you. Regardless of whether or not recycling turns out to be your cash cow, it’s always important to do. Just think of it as bonus interest earnings, both for your account and your karma.

Fed Announcement Spurs Mortgage Rate Dip

2009-03-18T16:32:00.000-07:00

Today, the Fed announced it would keep the target Federal Funds rate unchanged at 0.00 to 0.25% and continue to purchase back debt to help ward off a recession. Their plan of action includes buying up to $300 billion in long-term Treasuries over the next few months. Informa Research Services advises consumers on how to make the most of the Fed’s recent decision.

"Prices on U.S. Treasury bonds soared on the news and the yield fells sharply," according to the Wall Street Journal. "Yields on 10-year treasury notes dropped. Stock prices also rose sharply and the dollar sank" (Source: WSJ.com).

Additionally, the effect of the Fed’s announcement was apparent within hours as a dip in mortgage rates was seen. According to CNBC, Quicken Loans dropped 30-year mortgage rates by as much as 0.375% (Source: CNBC).

However, many speculate that this drop may be temporary. If history is any indication, this dip could easily be undone with rates jumping back up erratically and without warning.

Nobody can know for sure where rates are headed or how long they will stay there. However, checking online rate comparison tables and national averages regularly are easy ways to keep an eye on rate trends.

Because of the unpredictability of the current economic environment, if you have been waiting for a low rate to purchase a home or refinance an existing loan, now may be the time to take advantage of the low rates being offered and secure one before rates bounce back up.

What Does Green Mean to You?

2009-03-17T08:11:00.000-07:00

St. Patrick’s Day, springtime, luck, money, and eco-friendly: these are just a few of the things that come to mind when you hear the word “green.” By using some of the following tips, you can ensure your March is the greenest month of the year!

St. Patrick’s Day and The Luck o’ the Irish
According to the 2007 American Community Survey, 72% of households of Irish ancestry own their home. However, to join the Irish masses, you don’t need luck or a four-leaf clover. Instead, diligently taking care of your finances and credit score will help you qualify for the best available mortgage rates.

Spring Forward
As the weather begins to look a lot like spring, think about using alternative modes of transportation, such as the bus, walking, or biking. By finding cheaper and eco-friendlier ways of getting places, especially in the city, you can save your money and help reduce your carbon footprint. Put the money you saved by using alternative modes of transportation toward a savings goal to enjoy later, such as a weekend getaway. Your continued savings week after week will quickly add up to a formidable amount. To increase the effectiveness of your savings, find the highest yielding savings vehicle available using online rate comparison tables and increase the size of that pot o’ gold at the end of the rainbow!

It Can Be Easy Going Green
You don’t have to look far to find earth-friendlier alternatives. (In fact, if you’re reading this online, you’re already halfway there.) One very easy green habit to adopt is taking advantage of your bank’s e-statement option. In addition to saving paper, some banks may offer promotional rates that are available only with enrollment in e-statements. This will enable you to be more green—eco-friendly by earning more through increased interest.

No matter what green option you choose, be sure to make the most of it and make everyone around you green with envy!

Stay Warm This Season with These Money-Wise Tips

2009-02-02T08:44:00.000-08:00

The weather outside may be frightful, but your home will be so delightful... that is, if you prepare for February’s frosty weather the right way. It’s no secret that most household budgets are a bit tight right now, but some home improvements may be worthy investments that can help lower your energy bill by hundreds of dollars!

If you have a lot of equity in your home, this may be a good opportunity to use it to lower future utility bills. Whatever you do, be sure to shop around and make sure you’re getting the best rate on your home equity loan or line of credit.

Here are a few helpful tips to get you started:

Replace regular single pane windows with newer, energy-efficient or storm windows. This is one way to improve your home’s energy efficiency. Studies have shown that even using the less expensive option of storm windows reduces air movement into and out of windows, thus lowering the cost of heating and cooling your home.

Be sure your pipes are adequately insulated. Pay special attention to the pipes in your crawl space and attic, as these can be more prone to freezing. Properly insulating hot water pipes will help heat your water more efficiently as well.

Install a programmable thermostat. Program your temperature settings to be lower when you are not home or sleeping. This is one low-maintenance way to save energy and money this winter season.

There are also things you can do to help warm your home more efficiently that don’t cost a dime.

Turn down the lights and the temperature. Simply flipping a light switch off whenever you leave a room can save you hundreds in electricity bills over a year. Additionally, lowering the thermostat when you are away at work or sleeping can help cut energy costs.

Clean your gutters and downspouts. Ridding your gutters and downspouts of debris to ensure they work efficiently can be key in maintaining the condition of your home. Always proceed with caution when working on or around your home’s roof. If necessary, consider hiring a professional.

Keep your foundation clean of leaves and debris. Keeping the area around your foundation clear of clutter will help keep pests and rodents from burrowing in and around your home. This can help lower or eliminate the cost of ridding your home of them later.

Recycle and reuse as much as possible. This will lessen both waste and cost of winter living. According to the US Environmental Protection Agency, you can make logs for your fireplace by rolling old newspapers around a broomstick, soaking it with water, and letting it dry. These recycled logs can be used like ordinary wood (Source: www.epa.gov).

When tapping into your equity to finance these minor home improvement and maintenance projects, remember that if real estate values are dropping in your area, it is safer to be more conservative and use only what you need. This will ensure that you maintain value in your property if you plan on eventually selling it.

Small Changes Can Add up to Big Savings

2009-01-27T08:38:00.000-08:00

The economic outlook is subpar, but that doesn’t mean your finances need to follow suit. Here are a few tips to help you optimize your savings to make the most of these seemingly impecunious times (http://bankingmyway.com/).

Even though the economy may be down, banks will continue to compete for your business. Don’t settle for the first rate you see for any given product. Research rates before settling for the first one you find. There will always be promotional rates available from all financial institutions, big and small alike. One easy way to quickly see what is available is to use online rate tables.

When looking into savings or money market products, consider alternative product options. For instance, if you have your funds sitting in a money market account, you may want to consider looking into short term CDs. According to Informa Research Services, the national average yield on a 3-month $25,000 CD is slightly higher at 1.33% compared to the 1.13% national average yield on a money market account at $50,000. Bump the CD term up to 12 months, and the national average yield rises to 2.03%. That seemingly insignificant 2% is still 70 basis points higher than the yield on the money market account.

By making small changes to your savings plan, you can ensure your finances stay in the best shape possible despite the current economy and the uncertain economic future.

A Savings Account Doesn't Have to be Literal

2009-01-16T08:22:00.000-08:00

When you choose to open an account with a financial institution, look beyond your bank’s “regular” savings or interest checking product. On average, certificates of deposit and money market accounts have yielded higher rates than regular savings and interest checking accounts.

If you do not need access to your money in the short term, your best option may be a certificate of deposit (or CD). In many cases, CDs can offer high yields in exchange for keeping your funds locked up for a longer period of time. You should be sure to check the earnings on CDs of various length terms; in some cases, the earnings may be the same on a 60-month CD as on a promotional 13-month CD.

For those of us who are not ready to lock our money in a CD for a fixed amount of time, money market accounts may be a better way to save. Money markets may allow you to withdraw funds by check or automatic transfer. Furthermore, money market accounts can help you earn interest on your funds enabling you to continue to shop around for better rates. This account type can offer flexibility with high earnings, and for some, that’s a perfect fit!

You should always shop around to ensure you are getting the best rate. Even though CDs and money markets yield higher earnings on average, you should still check rates on other products, since banks can offer promotional interest rates on various products.

The Fed Hits New Low; Tips to Keep Your Financial Spirits High

2008-12-16T15:21:00.000-08:00

The Fed has hacked the Fed Funds rate by 75 basis points to 0.250%, the lowest target Fed rate ever. Informa Research Services advises consumers on how to keep their financial spirits high even in this bah-humbug economy.

However, the real issue to watch is what the Fed will be doing in the coming months and years to combat the sinking economy. Now that the Fed rate is dropped to historic lows, there is not much else the Fed can do by lowering the Fed fund rate to affect the economy. Furthermore, over the past month, the actual Fed rate has been well below the Fed’s target rate because demand for interbank loans has been low as of late (Source: Federal Reserve Bank of New York; New York Times). Because there isn’t much left for the Fed to manipulate involving their key interest rate, they will have to turn to other methods to help uplift the economy.

Home loan rates will mostly likely move depending on how investors react to the Fed’s announcement. Deposit rates are already less than impressive, and like the Fed rate, don’t have much further to fall.

But whatever happens, it would be wise to do your own research and watch rates carefully.

If you are looking for a home loan, check online rate tables regularly and become familiar with what attractive rates look like for the product you want. When shopping for a savings, money market, or CD account, keep an eye out for promotional rates frequently offered by banks. Even when regular core rates are at their lowest, most financial institutions will continue to offer special rates to new and loyal customers alike.

Indulge in the holiday spirit and take this opportunity to give yourself the gift of finding a low 30-year fixed mortgage rate to buy your first home, refinance an existing loan, or find a high-yield savings account to start the year off right by earning more on your savings!

Keep Your Savings From Going Cold With Online and Promotional Rates

2008-11-25T14:17:00.000-08:00

The weather may have cooled off, but the promotional offers from banks competing for your business have not. Despite these tough times, banks continue to offer very competitive promotional rates that you should look to take advantage of whenever possible. Here are a few options to consider when deciding where to stash your funds:

Consider a money market account instead of a regular savings.
Even if you want to start a savings account, you may want to look at a couple different options as far as account types. Money market accounts can be a smart alternative to a savings account since typically financial institutions offer higher yields on their money market accounts compared to their regular savings account. There is flexibility in different money market accounts to have check access or not.

Look online for deals.
Since the emergence of the internet, shopping for the best rate is no longer the long research process it used to be. Now you can check national averages and current rates with just a few clicks of a mouse! Also, you may want to think about using an online bank, as they historically have offered very competitive rates.

Keep an eye out for high yielding promotional CDs.
Consider promotional CDs that offer higher rates for having other accounts with the financial institution or having an off-cycle term (i.e. 13 months). Be sure to read the terms of these CDs to ensure it is a good fit for your savings plan as they may have restrictions or limitations that you should know about.

Your goal as a saver should be to find the best rate on the right product for you. Even if you do not plan on opening your account online, check online rate tables to see national averages and what rates are currently being offered by various financial institutions. This will ensure you can keep your money earning the best rate possible and doesn’t freeze despite the icy economic environment.

A Financial Survival Guide: Credit Card Conservation

2008-11-25T14:11:00.000-08:00

In addition to avoiding outrageous finance charges, being a responsible cardholder will also be reflected on your credit. Excellent credit is a must-have, especially with today’s credit crunch, when looking to finance (or refinance) a home purchase. Having good credit will qualify you for the best interest rates on both mortgages and credit cards.

Be on time, every time.
Make it a habit to pay your bills before the due date. Using options like online bill pay and pay-by-TXT can eliminate the need to submit your payment early via postal mail.

Pay down existing balances.
Working to lower existing debt looks better to creditors than getting a new credit card to pay it off. Plus, paying off one credit card with another does not decrease your debt; it just moves it to another account.

Do not open unnecessary credit cards.
If you have your hands full with your existing credit cards, adding to your credit card collection is not going to help, no matter how temping the incentive bonuses are. If anything, consider looking into getting a credit card with a lower interest rate. You can quickly compare interest rates using online credit card tables. However, be sure to read through each card’s details and fees before choosing one.

Communicate with your credit card company.
If you cannot make your minimum payment, immediately contact your credit card company and explain your situation to them. This is a better option than skipping the payment altogether. Taking immediate action to try and work with your credit card company may help sustain your credit score, which could save you money in the future by qualifying you for the best interest rates on credit cards and home loans.

A Financial Survival Guide: Sustain Your Savings

2008-11-18T09:10:00.000-08:00

Savings rates have seen better days. But that doesn’t mean there aren’t attractive rates out there to work with. In the current economy, saving should be a top priority. You never know when you may need to rely on your savings to temporarily replace a regular paycheck or pay for an unexpected expense. You can also use your interest earnings to help offset the increasing cost of living overall.

Aim high. Search wide.
To maximize your savings efforts, find the highest possible interest rate on your savings account. A quick way to compare similar savings products and find really great promotions at various financial institutions is to check out online rate comparison tables. With just a few clicks, you can compare the rates being offered on various regular and promotional savings products from a handful of different banks and credit unions. You should also consider a few different types of savings products. The best rate may be on a savings, checking, or money market account, so review all three options to find the most attractive offer for you.

Contribute regularly.
Interest earnings will always accumulate faster if the interest rate is being applied to a larger amount of money. If your savings product allows you to contribute additional funds, you should schedule regular deposits. Make things even easier and schedule automatic transfers or direct deposits from your paycheck or checking account.

If you choose to use certificates of deposit (CDs), consider laddering them to ensure your funds remain relatively available. CD laddering allows you to take advantage of the higher yields (of longer term CDs) while still allowing your funds to remain relatively flexible (using short term CDs).

Know your risk exposure.
Sometimes it feels like the world is out to get you. But you should be aware that there are government organizations and guidelines in place to safeguard you and your finances, and you should be fully aware of their limitations. For instance, make sure your accounts are fully FDIC-insured. For most, the FDIC now covers up to $250,000 per depositor per financial institution. For full details about FDIC insurance, please refer to the FDIC website located at http://www.fdic.gov.

A Financial Survival Guide: Manage Your Mortgage

2008-11-11T07:51:00.000-08:00

To embark on or continue homeownership, one must find a way to manage a mortgage. Look at these tips to help you manage your mortgage.

Start making payments. Make "past due" a thing of the past.
If you’ve stopped making payments, you need to begin again. Mortgages can be daunting. However, you must begin chipping away at your debt. You cannot put your monthly payments off forever, and there is no better time to start than the present. Walking away from your home may not be the right option. If you are unable to make your payment, communicate this to your lender as soon as possible so you can work together to negotiate the terms of the loan.

(Rate) Curves ahead!
If you have an adjustable rate mortgage (ARM), being aware of future rate adjustment periods is crucial to maintaining your home loan. Look at your loan documents or ask your lender.

Also, having a basic understanding of the various economic factors that influence rates may help you anticipate rate trends. If you are no economic whiz, knowing where to get reliable information can be just as effective.

Consider alternatives and negotiation.
Depending on your loan and the current rate environment, you may want to think about refinancing your current home loan. Check national averages and available rates on convenient rate tables to see what the most current rate trend is (i.e. falling or rising).

Try to avoid pre-payment penalties. Ask about it before you refinance. Choosing a loan without pre-payment penalties keeps the door open for you to refinance your loan again if rates go down.

Don’t allow yourself to be preyed upon.
Take the initiative to find a good rate. For instance, instead of submitting your information into a form, and allowing any number of lenders to contact you, check rates online and contact the lenders who are offering rates you are interested in. This allows you to control which lenders contact you without submitting any of your personal information.

A Financial Survival Guide

2008-11-04T09:13:00.000-08:00

Instead of focusing on who is at fault for the current economic crisis, it may be more worthwhile to focus on how to survive while working on ways to rebuild your personal finances. If you can manage to accomplish this, when the economy improves, you will be able to cash in on the favorable economic environment.

Come to terms with your situation.
Like dealing with most problems, the first step is to admit that a problem exists and that you had a part in creating your current situation. Whether you are faced with a credit card that is at its maximum limit, a monthly mortgage payment that is too much to handle, or any other debt that is beyond your means, not accepting the position you are in will only yield more problems.

Look out for trouble ahead.
Just like surviving in the wilderness, you should try to identify potential dangers and find the appropriate ways to protect yourself. Depending on what financial products you choose, certain dangers could create problems in the future. Is your interest rate on your loan product set to increase soon? Or is your financial institution increasing the fees associated with your savings product? These are just a few factors that can unnecessarily erode your finances.

Call your own shots when you can.
Instead of taking whatever your current financial institution offers, choose your products and financial institutions carefully. Shop around for the product with the best deal. It could be from your current institution or another one. Don’t take the first option offered to you.

Think, then act.
This may seem obvious, but many times, the simple things are the most overlooked. Stop letting yourself get deeper into debt. Be proactive and start taking care of your finances today! Get started now!

This is the first of a four-part series about how to maintain and make the most of your personal finances in the current economic environment. The next part will be released next Tuesday.

Fed Cuts Key Interest Rate To 1%: Trick or Treat?

2008-10-29T13:08:00.000-07:00

Today, the Federal Open Market Committee announced that it would whittle its key interest rate by 50 basis points down to 1.00%. The last time the Fed funds rate was this low was June of 2003. But is this a terrible trick or a splendid treat for consumers?

This key interest rate, in turn affects Prime rate, which is typically lowered to ease the credit market and make it cheaper for consumers to borrow money. The Prime rate is often used as an index in calculating short term loans such as auto loans, home equity lines of credit, and credit cards.

Whether or not this cut is going to improve the current struggling economy is anyone’s guess. For instance, historically, mortgage rates tended to correlate with the Fed funds rate, but as of late, this has not been the case. The best way to keep an eye on mortgage and equity rates is to check convenient rate tables regularly.

Furthermore, deposit rates tend to follow the Fed rate very closely when it is on the decline. However, financial institutions will most likely continue to offer attractive promotional rates which you should definitely take advantage of. The best way to find out what financial institutions are offering in your area is to check online rate tables periodically.

The effects of the Fed’s decision will have to be watched carefully, but by staying educated and vigilant of what current rates are, you can ensure you get the sweetest deal available in any economic situation.

Don't Get Spooked By Low Interest Earnings This Halloween!

2008-10-27T09:07:00.000-07:00

The interest you earn on deposit products may seem terrifyingly low this season, but that’s no reason to stop thinking about saving. Especially during these times of financial hardship, savings is more important than ever! Here are some quick tips to help you make the most of your savings right now:

Even though deposit rates may seem low, you should take advantage of the promotional and introductory rates financial institutions will very likely continue to offer. Looking at online rate comparison tables is an easy way to compare both core and promotional rates and products on a single page.

Diversify your financial institutions and banking products. By doing this, you will allow yourself the flexibility to take advantage of newly offered rates when they become available.

Shop around for the best savings product. Don’t accept the first product you come across. Convenient rate tables can tell you where the best rates are, whether they are available at a brick-and-mortar institution or online.

Contributing money consistently is one of the best ways to ensure your savings grows successfully. One easy way to guarantee you make regular contributions is to schedule automatic deposits from your paycheck or other bank account. This way, you don’t have to remember to transfer money; it will happen automatically!

By being smart about your savings, you can still see your savings grow in these economically ghoulish times!

What the Fed’s Coordinated Emergency Rate Cut Means for Consumers

2008-10-08T09:07:00.000-07:00

Today, as part of a worldwide effort to ease the effects of the current economy, the Federal Reserve Board enacted an emergency interest rate cut of 50 basis points. The Fed funds rate is the key interest rate used to influence market conditions. This cut leaves the Fed rate at 1.50%. Informa Research Services, Inc. informs consumers about what to do in these rare economic circumstances.

This is the second time this year the Fed rate has been adjusted prior to a scheduled Fed Board meeting. The last unscheduled cut was made January 22 when the key interest rate was cut by 75 basis points to 3.50%.

While there is no direct link between the Fed rate and mortgage rates, historically, mortgage rates have tended to follow the Fed rate. However, as of late, that has not been the case. Thus, the best bet for consumers is to check online rate tables regularly to keep an eye on where rates are and where they might be going.

If mortgage rates fall as a result of this move by the Fed, it may be a good opportunity for consumers to purchase or refinance their home. First time homebuyers may find it is a good time to purchase, especially with homes becoming more affordable. To ensure they are getting the best deal for their unique situation, consumers should do their research and shop around before choosing a loan product.

On the deposit front, rate movement may be slightly more restrained because adjustments may have already been incorporated into current rates offered by an institution since this move by the Fed was anticipated by many industry experts. The best way to ensure consumers get the best rate on their deposits is to research rates online. Furthermore, keep in mind that financial institutions will mostly likely continue to offer promotional and introductory rates that consumers can take advantage of in this or any rate environment. Looking at online rate comparison tables allows consumers to compare both core and promotional rates and products on one page.

Consumers should take their time and do their research before rushing into any deposit or lending decisions. They should look for the best possible deal that suits their financial situation.

Use Online Rate Tables to Stay Atop Changing Market

2008-09-16T15:02:00.000-07:00

Today, the Federal Reserve kept the target Fed Fund’s rate steady at 2.00%. The Fed Fund’s rate is the overnight rate of interest at which Fed Funds are traded among financial institutions. These loans are used to fulfill Federal Reserve minimum funding requirements. While this decision was made to calm the market, rates have been moving somewhat unpredictably as of late. Informa Research Services, Inc. recommends consumers use the Internet to ensure they get the best rates no matter what the rate environment is like.

Mortgage rates are not directly linked to the Fed Fund’s rate, but historically, they tend to correlate over time. However, as of late, this has not been the case. Thus, the Fed Fund’s rate may not be the best tool to anticipate mortgage rate movement right now. By checking rates regularly, consumers can familiarize themselves with rates and get a better sense of rate trends.

Interest rates on non-promotional deposit products may not have been at their highest prior to the Fed announcement, but there are many promotional offers available that flaunt high rates. Checking online rate tables regularly will ensure consumers find the highest annual percentage yield (APY) for a savings product of their choice.

Regardless of what you hear in the news, one way for consumers to get a feel for the rates in the market is to check rates and national averages online regularly.

Amid Economic Chaos, Online Resources Empower Consumers

2008-09-15T13:54:00.000-07:00

With Lehman Brothers filing for bankruptcy protection and Bank of America acquiring Merrill Lynch this weekend, consumers may feel helpless in this uncertain economic environment. However, consumers should empower themselves during these chaotic times by using online rate comparison tables to stay atop rate trends and changes.

In light of this weekend’s events, a new focus has been placed on the Federal Open Market Committee meeting scheduled for Tuesday. Prior to this weekend, the prospect of the Federal Reserve lowering the Fed Fund’s rate was slim. However, currently, Fed Fund’s futures imply a heightened chance of a 25 basis point reduction, with some analysts believing a 50 basis point reduction is likely. A 25 basis point reduction would lower the Fed Fund’s rate from 2.00% to 1.75%.

Regardless of what happens with the Fed Fund’s Rate or various financial giants, consumers should regularly check interest rates online in order to maximize interest earned and minimize interest paid. By constantly checking rates online, consumers can make the most of their mortgage, loans, and savings in any rate environment.

Freddie and Fannie Won't Fall, But Will Mortgage Rates?

2008-09-12T14:05:00.001-07:00

In light of the U.S. Department of Treasury’s action to place government sponsored enterprises, Freddie Mac and Fannie Mae, into a conservatorship, one has to wonder, “What does this mean for me?”

Many experts have speculated that this decision could lead to lower rates on various mortgage products. Thus far, there has been no overwhelmingly significant change in rates overall. Over the past week, the average rate 30-year fixed rate mortgages offered by major financial institutions have dropped 22.6 basis points from 6.761% to 6.535% according to Informa Research Services. If rates continue to drop due to this takeover, this may create some excellent opportunities for homeowners and prospective buyers alike.

For homeowners who have been waiting to refinance their mortgage, this may be a good opportunity to take advantage of lower rates. To ensure you secure the best deal, be sure to shop for the best rates.

To qualify for the best rates, be sure to maintain excellent credit. To keep tabs on your credit, look into free credit monitoring tools, such as Credit Karma (www.creditkarma.com). Credit Karma allows users to securely check and monitor their credit score on a regular basis.

No one can say for sure exactly how the takeover of Fannie Mae and Freddie Mac will affect rates long term, but the best way to stay on top of rate trends is to check rates regularly. By using online rate comparison tables, checking rate trends is only a click away!

Foreclosure’s Orphans: Homeowners Not the Only Ones Left Without Homes

2008-09-03T09:01:00.000-07:00

When foreclosure forces a family to leave their home, sometimes they are faced with making a decision about caring for their pet as well. Some may not be able to cover the cost of caring for the pet and others may be moving into another living situation that does not allow pets. In either case, the situation is not a pleasant one. Informa Research Services, Inc., discusses how to best avoid facing this predicament and offers resources for those who have to choose a different living arrangement for their pets.

To prevent a loan from falling into default in the first place, homeowners should know the terms of their home loan. “A borrower should never take on a mortgage they do not fully understand,” says Nancy Osborne, Chief Operating Officer of E-Rate.com, a mortgage information and consumer rate resource. Potential homebuyers should learn about the various types of mortgages available before choosing one. Additionally, they should shop for rates online ahead of time to ensure they are getting the best available rate.

If a homeowner thinks they need to miss a payment, they should contact their lender immediately. “First and foremost, a distressed homeowner needs to know who they will be dealing with before they find themselves too deep into trouble,” suggests Osborne. She also insists homeowners should find out who the decision-makers are at their lending institution and learn about their policy and process to modify the loan.

When the appropriate actions are taken in a timely manner, homeowners may be able to stay clear of falling victim to the real estate crisis and avoid losing their pets to foreclosure-induced relocation.

If a homeowner feels they may be unable to keep their pet with them, they should contact their local Society for the Prevention of Cruelty to Animals (SPCA), Humane Society, or one of many animal welfare organizations. According to No Paws Left Behind, Inc., a non-profit organization dedicated to finding solutions for family pets affected by the foreclosures, an estimated 63% of American households own pets. With experts agreeing that 2 million to 4 million homes will be foreclosed on this year, an estimated 1.25 million pets could be left homeless due to the current housing crisis (Source: nopawsleftbehind.org).

Moreover, earlier this month, California Governor Arnold Schwarzenegger signed Assembly Bill 2949 into law, which mandates that upon vacating a premise, property owners must notify animal control officials immediately so that they can appropriately apprehend and care for any animals that have been tragically left behind by their families.

While these are definitely commendable solutions, since they aim at solving the symptoms of the mortgage crisis and not the cause, the best solution is to avoid foreclosure altogether.

Look Online for Best Mortgage Rates to Maximize Foreclosure Purchase

2008-08-28T08:55:00.000-07:00

Purchasing a foreclosed home can definitely be a bargain for the right buyer. But to really maximize their savings, Informa Research Services advises homebuyers look online to find the best deal to finance their home purchase.

Sliding home values (and prices) and rising foreclosures mean possible affordability for first-time home buyers. Foreclosures made up 41 percent of California’s total home sales in the second quarter (approximately April through June) of this year, according to Business Week.

Even if you find a great price on a home, you should research available mortgage rates to ensure you also get a great rate on your loan.

Shopping for rates online can help you find the best deal to finance your home purchase. For instance, getting the national average rate of 6.68% on a 30-year fixed loan (according to Informa Research Services’ Interest Rate Review®) instead of the national high of 8.08% can amount to savings of over $200 a month (on a $300,000 loan). If you put this saved amount toward extra payments on your loan, you could pay off your loan more than 7 years early and save over $130,000 in interest. To calculate your potential savings, use custom mortgage payment calculators such as those on E-Rate.com and CreditKarma.com.

Finding a good rate to finance your home purchase will make your “home, sweet home” even sweeter.

Work Hard, Play Hard, Save Smart.

2008-08-21T11:22:00.000-07:00

Poolside cabana, $200 a day. Plane tickets to your destination of choice, $750. Vacationing without worrying about putting a dent into your finances, priceless.

For those fortunate enough, vacations and getaways can easily fit in their budgets. For the rest of us, without the appropriate planning, it can truly be a hardship to budget for a vacation. But if you start saving now and plan ahead, a fiscally worry-free vacation is really not out of reach.

Ready...
Plan ahead. Research the cost of your vacation and put a savings plan together that aims to cover most to all of your vacation expenses.

Whether you make a lump sum or monthly deposits into an account, make sure you research the best bank product that will get you the most attractive interest rate available and allow you to reach your goal to pay for your dream vacation. Don’t forget to consider time and how early you need to access your funds when creating your savings plan and choosing your bank product. For instance, if you only have five months until your winter getaway, obviously a 9- or 12- month CD would not be a good choice to use to save for this trip. However, a high-yield savings or money market account or short-term CD would be better options to consider.

There are many great rates out there along with promotional offers that will provide you the best return. Find the best deals by using online rate comparison tables.

Set...
Schedule automatic deposits now to ensure your savings will continue to grow. The fastest way to reach your savings goal is to start now and contribute regularly, and automatic transfers will ensure this happens. For example, depositing $1,000 into a savings account earning 3.25% will yield only about $30 in one year. However, if you schedule $200 to be deposited into the same savings account every month, your account will total nearly $3,500 by the end of the year!

GO!
What are you waiting for? The sooner you start, the sooner you’ll reach your goal, and the sooner you’ll be relaxing at your dream destination!

Rate Lock Key to Staying a Step Ahead of Rising Mortgage Rates

2008-08-13T14:22:00.000-07:00

According to Informa Research Services’ Interest Rate Review®, the national average APR on a 30 year fixed mortgage rose 74 basis points over the past 6 months (from 6.00% to 6.74%). Because of this rising rate environment, Informa advises consumers to consider locking the rate on their mortgage home loan.
When beginning your loan application process, you have the option to either lock or float your rate. By locking your rate, you are opting to commit to the rate and points option available at the time of the lock. Locking in your rate is one way to ensure the rate on your mortgage is not higher than expected upon loan closing. This option can help offset the volatility of an uncertain market.

The other option is to float your rate. Floating your rate means that you choose to lock-in your interest rate at some time after application, but before settlement. The borrower becomes more vulnerable to market volatility and fluctuations in rates. The advantage would come if you wait to lock-in and rates decrease, you may get a more favorable rate.

In a rising rate environment, locking in your desired rate early guarantees that your rate does not rise during your loan application process.

You should also consider the rate environment when you are choosing a type of mortgage product to finance your home purchase. Even though their introductory rates may seem very attractive, if you opt for an adjustable rate mortgage (ARM), you may be slammed with a huge rate increase in the future when your rate adjusts if rates continue their upward climb. Because of this, a fixed rate mortgage may be the smarter choice if rates continue to rise. To stay on pace with current mortgage rate trends, refer to online rate trending graphs and check national averages regularly.

Even though rates are rising, locking in a rate early and choosing the correct mortgage product should help reduce some of the risk associated with getting a mortgage in the current rate environment. You should always be sure to shop around to find the best rates and terms that meet your needs. Find the best deal locally by searching online rate tables. Be sure to consult your loan adviser to ensure you are getting the best rate and product for your individual situation.

Fed Isn't Moving, But Mortgage Rates Are

2008-08-07T06:30:00.000-07:00

After meeting Tuesday, the Federal Open Market Committee has decided to keep the Federal Funds Rate, the key interest rate set by the Federal Reserve, at 2.00%. This is the second consecutive time they have chosen to keep the Fed Funds Rate unchanged. So what does this mean for mortgage rates?

Since January 2008, the national average rate on a 30 year fixed mortgage has jumped 75 basis points at a time when the general public expected rates to go down because the Fed lowered their Federal Funds Rate (Source: Informa’s Interest Rate Review®). The fact is that the Fed Funds Rate has very little to do with mortgage rates. The Fed Funds Rate is an interest rate usually reserved for loans from one bank to another, beginning at the close of the business day and repaid the following morning before the start of the next business day. By contrast, mortgage money is typically borrowed over 30 years.

Because rates are on the rise, all potential homebuyers should keep an eye on online mortgage rate tables. Not only does this give you a better idea of where rates have been and where they are going, but this will also help you learn to spot a good rate when you see one. When you are ready to apply, you should lock in your desired rate early in the application process.

“The best rate lock strategy, of course, is to lock in [your rate] a rising rate climate and to float [or not lock in your rate] in a declining rate climate,’ suggests Nancy Osbourne, Chief Operating Officer of E-Rate.com, an online mortgage rate and information resource. If rates were on the decline, it would be okay to float your rate until you were closer to your loan closing date. To keep an eye on mortgage rate trends, check online rate tables and national averages regularly.

A Better Night's Sleep for Savers: IndyMac or My Mattress?

2008-07-18T14:45:00.000-07:00

“What I learned from IndyMac: Keep anything over $100,000 under my mattress.” That was the response I received from a friend and colleague of mine shortly following the release of a previous article entitled Learning from IndyMac or: How I Learned to Stop Worrying and Love the FDIC”.

My comedic coworker is correct in addressing the FDIC insurance limit; however, I would advise him to consider some smarter savings techniques other than the famous mattress-and-pillow method.

Keep Your Best Interest In Mind.
While your mattress may seem more secure than a bank, truth is that your money is actually losing value because it is not keeping up with the rate of inflation. To counter this effect, you should look to find the highest APY available in your area. Even if interest rates seem to be low right now, nothing is lower than the interest your money earns in your mattress, which is essentially 0%.

An easy way to find the best APYs available in your area is to check out online rate tables. By entering in your state and deposit amount, you will be able to find suitable savings options. In addition to looking at APYs, be sure to consider the accessibility granted with each savings option.

Diversify Your Financial Institutions.
Be aware that the $100,000 FDIC-insurance limit is per depositor, per financial institution. In other words, if you have accounts at five different institutions, you will be insured for as much as $500,000 altogether ($100,000 at each bank). There are also rules that address insurance coverage for joint accounts, trusts, and other FDIC-insured account types. For all the details, refer to the FDIC website at http://www.fdic.gov.

The bottom line is if you don’t mind losing out on the interest your money could earn in an FDIC-insured account, go ahead and stuff your cash under your bed. But the savvy savers out there sleep better because they know there are better ways to grow your savings portfolio while still protecting your funds from being lost. With FDIC-insured accounts, there’s really no reason to not take advantage of the interest that could be earned. Your savings accounts should never be something to lose sleep over!

Learning from IndyMac or: How I Learned to Stop Worrying and Love the FDIC

2008-07-15T13:46:00.000-07:00

With the recent closure of IndyMac Bank, you must be wondering what happens to your deposits if your bank is the next to close. The good news is that as long as your accounts are FDIC-insured, you shouldn’t have too much to worry about!

The Federal Deposit Insurance Corporation, better known as the FDIC, exists to protect depositors’ accounts at insured institutions. Its basic insurance covers up to $100,000 per depositor per financial institution (or up to $250,000 for certain retirement accounts). For more details concerning FDIC limits, please see the FDIC website located at http://www.fdic.gov.

This means that even if your bank is closed, like IndyMac, the FDIC will insure your deposits, dollar-for-dollar, up to the insurance limit. This can include principle and any earned interest up until the bank’s closing date.

So what does this mean for you? It means that as long as you fall within the FDIC limits, you can open up any insured checking, savings, money market, and CD accounts, without worrying about losing your money! There are very attractive rates available at any size bank or credit union. To ensure you do not exceed the FDIC insurance limits, diversify your funds by having accounts at multiple financial institutions.

The easiest way to find the best rates on savings products is to use online rate tables. Rate tables allow you to quickly find and compare available offers from various FDIC-insured financial institutions in your area.

Save to Help Increase Your Wealth

2008-07-03T14:15:00.000-07:00

In a world of “get rich quick” schemes, it is nice to know that there is a safe, tried and true method of increasing your wealth: saving. I don’t mean stuffing your extra money under your mattress. Instead, save wisely, using savings accounts, money market accounts, and certificates of deposit (CDs). Here are some tips that will help maximize your savings.

Get out of debt
Paying off credit cards should be everyone’s top priority before starting any savings program. Taking on credit defeats any earnings potential you may otherwise receive from a savings account. With credit card finance charges running as high as 25% or more when compounded, there are very few savings programs which can offer this type of return. Here are some steps to take so you can begin to get out of debt.

Control your urge to spend. Start by placing all your credit cards aside while you assess where your money is going.

Take a look at your monthly payments and determine how much you could be saving in finance charges by paying off the entire amount.

Pay down your highest-interest credit cards first, before you pay off any others. Also consolidate multiple credit cards into one.

Once you are out of debt, try to stay out of debt by always striving to pay more than the minimum amount, and ideally, by paying off your entire balance in full each month.

Use a Variety of Savings Products
When you are out of debt and ready to start saving money, the next thing you have to do is become familiar with the different products available to you. There are regular savings accounts, money market accounts, and certificates of deposit (CDs), differing from each other by the amount of interest they yield and by their level of liquidity. Of these three types of accounts, a savings account has the least amount of yield and the highest liquidity, a money market account has a higher yield and less liquidity, and a CD has the highest yield and almost no liquidity.

If you would like easy access to your money, but would also like to earn a high return, the wise thing to do is to split up your funds between these different types of savings products. It depends on your unique situation whether you will put more into one type than into another, so before choosing an account, you should carefully determine how much liquidity you need, or if you can afford to put most of it in a high-yield account. Remember to always shop around for the accounts that best fit your needs and that offer the highest interest rates.

Maximize your return with CD Laddering If you’re considering saving a substantial amount in a CD, one way to protect your CD from fluctuating interest rates is to use a strategy called laddering. By staggering your deposits into certificates of different terms, you have CDs maturing at different times, which you can rollover into a longer term or withdraw at maturity without paying a penalty. CD laddering gives you the flexibility to access at least some of your money if needed within a relatively short time frame with the added security of building a longer-term savings portfolio.

No Fed Cut? Stop Twisting My ARM!

2008-06-25T13:46:00.000-07:00

Today, for the first time in nine months, the FOMC announced that it would not lower the Fed Funds Rate, the key interest rate set by the Federal Reserve. So what does this mean for mortgage rates?

While there is no direct tie between the Fed Funds rate and mortgage rates, historically the two rates tend to correlate over time. But as of late, this trend has not held true. For instance, even though the Fed lowered their key interest rate 25 basis points on April 30, the national average rate on a 5/1 ARM continued to rise 51 basis points from 5.29% on May 6 to 5.80% on June 24 (Source: Informa’s Interest Rate Review®).

Save money by refinancing before rates climb higher
If this trend continues, how long can you afford to wait before refinancing out of your adjustable rate mortgage into a fixed rate loan? A 50 basis point increase in your mortgage rate from 6.00% to 6.50% could increase your monthly principal and interest payment on a $200,000 mortgage from $1,199 to $1,264 a month. Securing the lower rate in this scenario could save you $65 a month, or $780 a year. Shop online to find the best available rates in your area.

Since mortgage rates seem to be rising despite Fed interest rate cuts, one smart way to keep up on how rates are changing is to check rate comparison tables regularly. Checking national average rates can give you a quick snapshot of how rates are changing, and perhaps, some insight into where they are going.

A Financial Game Plan for the Avid Sports Fan

2008-06-13T14:21:00.000-07:00

Do you find yourself online checking the latest sports scores instead of checking for the best interest rates? Does the batting average of your favorite player dwarf the rate on your savings account? Can you recall the salary of a star player more quickly than you can recall how much you have in your personal savings? If so, check out these tips to help you use your dedication to your team as a fast track to successful savings!

He Shoots, You Score!
Use your favorite team’s games as a catalyst for saving money. Each time your team scores, dedicate a predetermined amount of cash to your savings. For instance, baseball fans may choose to deposit $5 a run and $20 per homerun. For higher scoring sports, such as basketball, perhaps $1 or $2 for every point scored would be more appropriate depending on your savings goal.

The best part about this savings strategy is that the better your team does the more money you save. (It’s a win-win situation, and frankly, how many of those do we come across these days?) By the end of the season, hopefully you will have enough saved up to buy yourself a ticket to go watch your team in post-season play.

To increase your savings, find the appropriate savings product with the highest APY to ensure you hit a grand slam with your savings efforts.

Chaaaaaarge!
If you are big on sports paraphernalia, consider getting a sports-oriented rewards credit card. You can earn jerseys and sports memorabilia while buying the more necessary things, such as gas and groceries. The ESPN Total Access Visa, MLB Extra Bases Credit Card, and Nascar RacePoints^SM Visa are just a few of the choices you have when it comes to choosing sports-focused reward cards. Use online rate tables to quickly compare the APRs and fees associated with your various options.

Make Savings a Team Sport
While you may be a pro at saving, what’s the fun in having enough to fund a getaway when you have no friends who can afford to join you? To ensure everyone will be able to go with you on the road, save with your friends. Keep each other in check to ensure that everyone has a successful season of savings!

Can Banking Green Save You Green?

2008-06-11T07:23:00.000-07:00

Hybrid cars, organic produce, and environmentally-friendly cleaning agents: they’re all better for the environment, but they seem to reinforce the idea that saving the environment may come at the cost of your wallet. However, green banking is one way to help conserve natural resources that can come without any cost to you, and may actually save you money.
A Few Clicks Can Make A Huge Impact
If you’re one of those who see electronic statements (e-statements) and paying bills online as just Internet junkie banking practices, you should be aware of the environmental impact traditional bank statements and payments has on the planet. According to PayItGreen.com, if 1 in 5 American households made the switch to greener banking options, the following resources could be conserved in a single year (Source: PayItGreen.com):

150,939,615 lbs of paper (or 1,811,275 trees)

Enough wastewater to fill 2,180 Olympic-size swimming pools

Enough waste to fill 6,141 garbage trucks (or 8,597,328 household garbage bags)

3,920,802,916 lbs of greenhouse gases, which is equivalent to:

Taking 325,722 cars off the road (or the emissions avoided by not consuming 200 million gallons of gas)
Planting 45.6 million seedlings and allowing them to grow for 10 years
Preserving 12,405 acres of forest from deforestation

Enrolling in e-statements typically does not cost anything. In fact, some banks, such as Dade County Federal and O Bee Credit Union, even offer promotional annual percentage yields (APYs) for customers who enroll in e-statements, complete debit transactions, and satisfy any number of other requirements. Save your fuel and check online to compare APYs and find the right products for you.

Banks Donate on Your Behalf
In addition to choosing e-statements and online payments, choosing environmentally conscious banking products is another way to help sustain our natural resources. For instance, Bank of the West’s Conservation Account donates half of the monthly service charge to the Nature Conservancy (Source: BankoftheWest.com).

Similarly, Shorebank Pacific offers the EcoCash™ debit account. This debit account encourages debit transactions in place of writing checks. It comes with 5 free checks, but each additional check is $3, and a portion of this fee is sent to the Climate Trust to purchase carbon offsets (Source: Eco-Bank.com).

Check out HSBC’s ecosmart^SM credit card if you are looking for an environmentally-friendly credit card. In addition to being able to cash in your points for various rewards and eco-friendly merchandise, you also have the choice of donating your points to an environmentally-friendly charity.

Financing Perks of Getting a Hybrid
Everyone knows about the environmental perks of driving a hybrid, but did you know that you can score a better interest rate on your auto loan when financing a hybrid? Some financial institutions offer hybrid loans from 0.25% to 1.00% lower than regular auto loans; however, be aware that some also have effective rate floors. To find the best deal, use online rate tables for a fast, easy way to compare available offers.

Green banking is only the first step of many you can take to help the environment. Any changes you make in your life to help conserve our natural resources, however large or small, are important and will make a difference in the end. Since green banking practices can yield less clutter, credit card rewards, and better interest rates for you, there’s no reason to hesitate in your eco-friendly ways. Get started now.

Spend or Save? How Should You Spend Your IRS Check?

2008-05-14T10:53:00.000-07:00

The government is giving you money! GASP! In addition to the economic stimulus rebates currently being distributed, tax refunds are also making their way to a mail box or bank account near you! Last year, the average tax refund was $2,733 (Source: IRS.gov), and while that’s not enough to completely revamp one’s living, invested correctly, it can possibly yield relatively large returns. So when you get your IRS check, what should you do with it?

Save A Little Bit
Due to the current economic market conditions, saving your money is definitely a formidable option that should be seriously considered. For instance, if you are in an industry that is affected by the changing economy, you may want to think about fortifying your savings and retirement nest egg with the extra funds you receive from government rebates.

The saving options available are anything but few and far between. To get the best deal for your unique situation, shop around and consider all your options before committing to a banking product. Be sure to consider criteria such as accessibility of you funds, your goal, and as always, aim to find the best possible APY.

Hey Big Spender!
While others may choose to save, you bravely choose to do your economic duty and spend that stimulus check like there’s no tomorrow!

Before you run out and decide to splurge on the latest technology trend, consider spending your money on something that can increase your assets. For instance, if your rebate and refund checks constitute a large enough amount, adding a fresh coat of new paint to your home instead of adding a new coat to your wardrobe can help maintain the value of your home.

However, if you decide to invest your money, find the best available rates online by using rate comparison tables to get the biggest bang for your buck!

Will Last Week's Fed Cut Help Lower Mortgage Rates?

2008-05-07T08:24:00.000-07:00

The quick and easy answer is that you should see a slight drop in adjustable rate mortgage (ARM) rates but fixed rates should remain relatively unchanged.

In loose correlation with the fed rate, ARM rates peaked in September 2007 (with the national average for a Jumbo 3/1 ARM at 6.848%) and fell by an average of 16 basis points in October 2007. Rates stabilized in the three months following, averaging 6.389% for the Jumbo 3/1 ARM’s nationally. The lowest rates occurred in February 2008 (5.995%), which mirrored rates from the previous year in March 2007 (5.994%). Overall, March 2008 rates are displaying a slight increase (of about 0.125%) compared to rates only one year ago.

Based on the latest fed rate cut, adjustable mortgage products may remain stable or reflect a slight change. Use convenient rate tables to stay updated on the rates currently available in your area.

Fed Slashes Rates Again: Is Your Piggy Bank Half Empty or Half Full?

2008-04-30T13:13:00.000-07:00

Today, the Federal Reserve Board has decided to lower the target federal funds rate 25 basis points down to 2%. Even though everyone knows this decision was made with the intent to prevent recession, how does this decision affect your personal finances on an individual level?

Consumer loans: Half Empty
While you may secure a stellar rate on your home equity line, be careful how you use it. You don’t want accumulate more debt than you can comfortably pay back. Yes, you may be tapping your equity for a low rate, but as debt accumulates, you are paying it back plus interest.

Consumer loans: Half Full
The good news is that you should begin to see the variable rates typically attached to credit cards and home equity lines of credit take another dip. Research available rates to ensure you are getting the best deal.

Deposits: Half Empty
Each time the Fed cuts rates, savers seem to be losing out more and more. However, because the Fed cut was not drastic, tumbling rates would not be expected.

Deposits: Half Full
Even though deposit rates are beginning to resemble your college student’s GPA more than interest rates, there will still be competitive rates offered by financial institutions. You just have to find them, and using convenient rate comparison tables can help you find the best rates online. While rates may be relatively low, financial institutions will always offer higher promotional and introductory rates. Don’t be afraid to use these offers to your advantage. Be sure to read the fine print and know the details to maximize your savings efforts.

Generally, every economic glass is simultaneously half full and half empty. If you do your research ahead of time, it will make the selection process for the best rate and best financial institution easier. You can fill up your money cup and all it takes is the click of your mouse!

Use Every Day to Help Fund Your Getaway

2008-04-23T15:00:00.000-07:00

Does the warm weather have you daydreaming of summer travel plans? While you may be cooped up in an office or home all day, you can use your everyday expenses to help fund your next getaway. With credit card rewards programs, you can be rewarded for buying things you would normally buy, such as gas and groceries

Pay with plastic at the pump to help fuel your vacation fund.
Using a credit card with a cashback rewards program to pay for gas can help take the edge off climbing gas prices while giving you extra money to contribute to your vacation funds. Be sure to understand the details of your card and rewards program to maximize benefits. Shop around online to quickly compare available rates and programs.

Airline mileage programs can go the distance for you. Most mileage programs offer both miles for flying and purchases, but many also offer extra incentive programs allowing you to earn multiple miles per dollar spent. For instance, the Hawaiian Airlines Visa offers both miles for flying and regular purchases, but it also has special offers with partners such as iTunes, Sephora, and Netflix. These partnerships can yield huge benefits for cardholders since each promotion reduces the dollar amount that must be spent for free flight vouchers by offering either lump sum bonus miles or multiple miles per dollar spent.

Branded cards can indirectly help fund that getaway. Branded cards and their corresponding rewards programs can also help you save on your vacation indirectly as well. For instance, if you use the ESPN Total Access Visa, while the rewards may be in the form of ESPN points redeemable for sports memorabilia and tickets, these points can be viewed as funds from your budget that can go straight into your vacation fund instead of being used to pay for entertainment.

When shopping for any rewards program, be sure to read the fine print and know how the program works. Be aware of the introductory rate, standard rate, penalties, and any annual fees that may be associated with a rewards credit card. While you may accumulate rewards quickly, be diligent in avoiding excess interest and penalty payments to maximize your benefits. The quickest way to shop and compare these details is to use online rate tables.

What Are You Losing By Not Contributing to Your IRA Today?

2008-04-09T08:48:00.000-07:00

Would you pass up free money? If you aren’t contributing to your IRA, you may be.

If you don’t plan on working for the rest of your life, an IRA is vital in helping you retire. The sooner you open your IRA, the sooner you can start building up that retirement nest egg and reaping the added tax benefits of an IRA account.

The present is a gift, so use it well. Now may be the best time to contribute to your IRA so take advantage of it and act fast! Many financial institutions offer special IRA rate promotions to encourage consumers to make deposits or open up IRAs prior to April 15.

While rates may be nowhere near historical highs, while you wait to contribute, your money is essentially earning 0% interest. Frankly, most interest rates available are going to be better than none at all. Be sure to check convenient rate tables to see what rates are available.

If you contribute to a traditional IRA before April 15, contributions can help reduce your taxable income (for either the 2007 or 2008 tax year), thus decreasing your total taxes owed. In addition to reducing your current taxes, you are contributing to your own retirement savings.

It’s never too late to start. As long as you are working, it is never too late to start contributing to your retirement fund. In fact, the rules concerning eligible contributions for those 50 years of age or older accommodate this. If you are age 50 or older, the maximum contribution is typically $1,000 higher than for those who are less than 50 years of age.

Know your options. Another thing to consider in your retirement savings plans is the type of IRA. Just like other savings products, there are a number of different IRA options. IRAs can be termed (CD IRA), liquid (money market IRA), or variable (with a variable rate, but a fixed term). Shop for the best rates online.

Additionally, be wary of the details of each IRA because frequently, they can make a difference as to how useful each option can be for you. For instance, if you plan on retiring in less than five years, a Roth IRA would not be ideal because it requires a five year seasoning period. In other words, funds can only be withdrawn (for approved purposes) penalty-free if the account has been open for five years. Thus, if you are planning on retiring in just a few years, a traditional IRA would probably be a better choice than a Roth IRA.

Always ask the experts. The rules concerning IRA contributions and tax deduction eligibility change frequently, so consult your tax preparer to ensure you are working with the correct assumptions for your individual situation.

Foreclosure: The Other F-Word

2008-03-24T07:46:00.001-07:00

Okay, so foreclosure’s not exactly a four-letter word, but it’s definitely the most dreaded 11-letter F-word for homeowners. Foreclosures may be at record highs, but that doesn’t mean you have to be a part of another sad statistic. Here are 3 common reasons homes end in foreclosure and how to avoid letting your home become one of the masses.

You weren’t realistic and honest about your financial situation. You were not completely honest or maybe you stretched the truth about your finances on your home loan application.

Solution: It is important to view your financial situation honestly to succeed in the world of homeownership. Look at your budget and see if you can comfortably accommodate the monthly mortgage payment. If it looks doubtful, wait a year, save your money, repair your credit history if necessary, and then try again. Keep in mind that rates and payments can fluctuate depending on your loan type. If you are already in the home, consider taking advantage of the recent Fed cuts and refinancing your current loan.

You signed a loan agreement without understanding it. You signed where you were told to sign, but you have no idea when your rate will adjust or how your new rate is determined.

Solution: It is important to read and ask questions when signing any mortgage loan agreement and additional documents. Make sure you read disclosures and documents that detail any future rate adjustments and how they will affect your future payments. You can call your lender and ask questions. Knowing the details of your loan agreement can also help you make certain decisions concerning refinancing and pre-paying your loan.

You have been avoiding your lender for weeks or months. After missing payments, lenders will attempt to contact you to retrieve their payments. You avoid your lender as a way of avoiding your payments

Solution: Keep your avenues of communication open. Avoiding contact with your lender will not alleviate your problem. Communicate with your lender even if you’ve only missed one payment. Letting them know what is going on will demonstrate that you are making an active attempt to alleviate the issues. Many lenders will be open to negotiating payment options and plans to keep you in your home.

Is the Fed Rate Cut What the Housing Doctor Ordered?

2008-03-18T14:11:00.000-07:00

Today, the U.S. Federal Reserve slashed the discount rate by 75 basis points down to 2.25%. But how does the Fed rate cut affect you and your search for a new home? Is the Fed rate cut the miracle elixir to cure the housing market pain?

When the Fed makes a rate cut, it actually doesn’t affect consumers directly since the Fed funds rate is the rate that financial institutions are charged for overnight loans to fulfill reserve funding requirements. However, this does affect consumers indirectly by allowing financial institutions to offer more financing options, possibly at lower rates.

The Fed cut should not directly affect fixed rate mortgages, but it can have a more immediate impact on short term loans, such as adjustable rate mortgages (ARMs). Check online rate comparison tables to stay up to date with rates in this volatile market.

This should be good news for responsible borrowers looking to purchase a home. If home prices either continue to drop or stay put, and more financing options become available, the market may look like a buyers market soon enough.

But if you already own a home, don’t fret! The Fed rate cut could mean an opportunity to refinance an existing mortgage at a lower rate or use your equity to fund home improvement projects. However, be aware that some lenders will have set floor rates. These floor rates may be set slightly higher than how the rate is typically calculated, which is prime rate plus a margin. To be sure you are getting a good rate, check convenient home loan equity rate tables.

5 Steps to Successful Savings

2008-03-11T11:57:00.000-07:00

The journey of a thousand miles begins with a single step... as does the journey to a successful savings plan. Join me as we walk through one of the most basic parts of setting up a successful savings program.

STEP 1: Find a savings product that suits your needs. Typically, you’re going to want to choose between a number of savings products available at FDIC-insured institutions, such as savings, money market accounts, or certificates of deposit (CDs). However, if your savings needs are relatively flexible, as they were for me, this decision may be directed, in part, by the rates and requirements for each account.

STEP 2: Find the highest rate. To quickly compare offers and find the highest rate, check convenient online rate tables. These tables allow you to compare rates on similar savings products at one glance. Securing the highest rate should be a top priority when choosing any savings product. There is simply no reason to settle for a lower rate when there are higher ones available for the savings product of your choice.

STEP 3: Open your savings product. Opening a savings product in a branch or over the Internet can be quick and simple. To complete most applications, you will be asked to provide information to verify your identity. While each institution can have different requirements, they tend to include the following: a social security or tax I.D. number, U.S.-issued driver’s license or I.D. card, and a legal U.S. address.

STEP 4: Deposit funds into your new savings product. Upon approval, take the final step and deposit your funds to your new savings product. With a number of Internet banks, a valid U.S. checking account is linked to the Internet account for easy deposits and transfers; likewise, for many Internet divisions of traditional banks, an existing checking account may also be a requirement in order to make the initial deposit. Also, some institutions may offer bonuses for having multiple accounts.

STEP 5: Deposit funds regularly. Congratulations on successfully opening a savings product! While this account will continue to grow slowly and surely, a truly successful savings program requires routine contributions. One way to ensure this happens is to schedule automatic transfers. For instance, a regularly scheduled $50 transfer from your checking account to your savings account each month will yield $600 a year plus any interest you may earn along the way. Consider selecting CDs that will allow you to add funds during the term. If you use a product that does not allow additional deposits (such as a regular CD), you can still use automatic transfers to accumulate a lump sum to invest later.

Continually checking for the best product that fits your needs should help ensure you are getting the most out of your savings product. Always keep your eyes open for teaser rates and promotional offers.

Turn Up Roses This Valentine's Day with a Sweet Savings Account

2008-02-12T10:01:00.000-08:00

It’s that time of year again when children and adults alike exchange cards, candy, and small gifts, and singles are reminded, yet again, that they are single. Whether you love or loathe the holiday, there are a number of things you can do to take the sting out of Cupid’s arrow (or the lack thereof) this year.

Not-So-Singles
If Cupid has been kind to you, Valentine’s Day is an opportunity to show your special someone precisely how special they are to you. Frankly, this frequently involves spending (and not saving) money. However, planning for gifting occasions in advance can help take the pain out of showing how much you care.

Set up an interest-bearing savings product and contribute regularly to prepare for all the different gifting holidays and other special occasions. Contributing $50 a month to a savings account will yield over $600 annually. Pair consistent savings habits with an attractive interest rate and your savings efforts should increase significantly.

Saving for holidays can be a two-person affair by setting up a joint savings account. You and your sweetie can save money together for celebrations that you both could enjoy, such as weekend getaways to celebrate anniversaries and birthdays. Not only does this endeavor require cooperation from both partners, but it allows you to spend time together, which should be more important than money.

Singles
First, realize that there are worse things in life than being single. There, I said it.

Second, consider Valentine’s Day a chance to show yourself some love. (I mean, why not?) Others may be treating their significant others to a special day, but you, oh single one, deserve a special day as well. Since there are currently no nationally recognized Celebrate Single’s Day (it’s next on my personal to-do list, right behind curing cancer and solving world hunger), take this opportunity to treat yourself to a decadent chocolate ganache or maybe just some good ol’ “me” time.

For those of us who are a bit more finance conscious, perhaps a succulent savings account with a delicious interest rate would be friendlier to the waist and wallet alike. Take some “me” time to scope out online rate tables to find the most attractive interest rates. Despite the Fed rate cuts, there are still great rates available to fall in love with. Remember to use the sort feature available on many online rate tables to get a sense of what a competitive interest rate is in the current rate environment.

However, you decide to celebrate Valentine’s Day this year, be sure that it involves treating someone (yourself included) to something nice because everyone deserves a little love at least once a year.

Fed Rates Keep Falling on My Head: What the Fed Rate Cuts Mean For You

2008-01-30T10:19:00.000-08:00

Today, the Fed slashed the Fed funds rate by 50 basis points. Like most things, dropping rates are a game of give and take; the lowering of Fed rates can be beneficial for some parts of your financial life and detrimental for others. So how exactly can you make the most of the most recent Fed rate cuts?

What does the Fed rate cut mean for my mortgage?
Not all mortgages are directly linked to the Fed rate, but adjustable rate mortgages (ARMs) are one type that is influenced by the Fed rate. Thus, ARM rates were affected by last week’s drastic Fed rate drop. In fact, just within the past week since the last Fed cut, the APR on a 5/1 ARM dropped from 5.65% to 5.25% based on Informa’s National Averages (Source: Interest Rate Review®, Informa Research Services).

What about my other loans?
Because the Prime Rate is the key index used to determine the variable rates, such as credit cards and home equity lines of credit (HELOCs), the rates associated with these types of loans can be affected by the change.

And what is going to happen to my savings efforts?
Since the Fed’s rate cut last Tuesday, average deposit product interest rates have dipped as expected, but there has been no uniform decrease across the board. For example, the interest rates on 3-, 6-, 12-, 24-, and 36-month certificates of deposit (CDs) (at $25,000) dropped an average of 20-30 basis points according to Informa’s National Averages report. On the other hand, the rates for checking accounts dropped only 2 basis points (Source: Interest Rate Review®, Informa Research Services).

Despite some drastic rate drops due to the emergency Fed rate cuts last Tuesday, it is very unclear whether or not the most recent reduction will incur the same reaction. Because today’s Fed rate cut was widely anticipated, some of the slashed rates over the past week may have been anticipated and incorporated into the rates offered today. However, one thing that may be expected is the volatility of today’s rate environment.

“One thing we’ve noticed is that [financial institutions] are quicker to drop rates than to raise them,” said Ray Montague, Deposit Research Manager at Informa Research Services. Looking at historical trends, when the Fed drops rates, deposit product rates tend to follow the Fed’s moves very closely and drop rates quickly. On the other hand, when the Fed raises rates, deposit product rates tend to stray behind and raise their rates slowly.

So what now? What should I do with my savings and deposits?
Despite falling rates, there is still hope for those looking to save. Regardless of where Fed rates stand, financial institutions will continue to offer promotional and teaser rates to attract new customers. If you are finding it difficult to judge what is competitive in the current rate environment, remember to use the sorting feature available on many of the online rate tables. Additionally, checking rates regularly and staying informed of what rate changes mean for you can help you properly gauge what is best for your situation.

The Fed Cuts Rates Again: What You Should Do Now

2008-01-22T10:39:00.000-08:00

Today, the Fed decided to cut the Federal funds rate a whopping 75 basis points to a scant 3.5 percent, the lowest its been since August 2005 (Source: federalreserve.gov). Although talks in the news and among policymakers have been centered around countering a potential recession, the unabashedly selfish (nonetheless, important) question for you may be “What does this mean for me?” Here’s a quick cheat sheet for managing your finances after the Fed’s decision:

Loans

The effects of the Fed funds rate cut should be seen most noticeably in short-term adjustable rate mortgages (ARMs). While a drop in rates will be more evident over the next few months, those who will benefit most immediately will be those with ARMs whose introductory fixed rate period is ending. Because the rate adjustment period is beginning on these loans, the rate cut will be reflected in the newly assessed rate. However, those with ARMs who are in their introductory fixed rate period could potentially see the benefits of the lowered rates over time.

Savings

Think about locking your money into a CD today before rates have an opportunity to adjust to the Fed rate cut. Because CDs flaunt fixed rates, this may be a smart move if you suspect rates will drop further. Due to the volatile stock market, be sure to choosing a savings product with an FDIC-insured institution to ensure that you never lose your initial deposit. Check online for the most competitive offers.

Pay close attention to promotional and teaser rates from various financial institutions. Regardless of the rate environment, banks almost always offer impressive rates on CDs, money market accounts, and high-yield savings products to attract new customers. Even if you have an institution you already enjoy banking with, do your research and check online for current promotions. Be sure to use the tools available to you to stay up-to-date with the most current rates being offered.

Checking rates regularly and staying informed of what rate changes mean for you can help you properly gauge what is best for your situation.

Down Payment Options: What's My Best Bet?

2008-01-14T09:58:00.000-08:00

Everyone knows that the standard is to put 20% down on home purchases. But is this my best bet? In making this choice, do the math and ask yourself the following 3 questions:

1. How long do I plan on living in the home?
Depending on how long you intend on living in the house, you may or may not choose to make a substantial down payment. If you plan on staying in the home for a longer period of time, you may want to look into making a larger down payment if possible. However, because you don’t get your down payment back, you may want to think about putting less money down if your plans are still up in the air.

Also, figuring out whether you plan on staying in your home for 3 years or 30 years will help you decide what kind of loan you should get. For instance, if you plan on staying in your home for a shorter period of time, you may consider looking for an adjustable rate or interest only mortgage loan.

2. How much can I afford to spend on my monthly mortgage payments?
Because your down payment affects the amount you are borrowing, it affects the size of your monthly payments as well. Typically, when a larger down payment is made (and as a result, a smaller amount is borrowed), monthly payments are smaller. However, if this is not one of your options, then be sure that your monthly payments fit into your budget. Think about what kind of loans are available because your monthly payment will be determined by the type of loan you have. For instance, if you choose a 30-year fixed mortgage over an adjustable rate mortgage (ARM), your payments will stay the same for the life of the loan where as the payments on an ARM may change after the initial term of the loan.

Remember, if you do not put 20% down, you may need to pay private mortgage insurance (PMI), which will be added to your monthly payment. Unlike the interest paid on most mortgages, PMI is not tax-deductible. The alternative to paying PMI is to get a “piggy back” loan, or taking out a second loan to help finance the 20% down payment.

3. What options does my credit score provide me?
It is important to see what options are available to you depending on your credit score. Good credit can save you money by qualifying you for better interest rates on your mortgage loan. For instance, let’s take a person with a credit score under 620 versus a person with a credit score of 720 or higher (assuming a standard 30-year fixed, $300,000 mortgage loan). The person with the lower credit score would qualify for an annual percentage rate (APR) of 9.715% while the person with a higher credit score would qualify for an APR of 6.080%. In this example, having a better credit score could save you approximately $756 a month, or $9,072 a year (Source: MyFico.com).

This applies not only to first mortgages, but second ones as well. For those with impressive credit, getting a “piggy back” loan can be less costly than paying private mortgage insurance. The rates available depend on your credit score, so be sure to use available resources to research rates.

'Twas the Time for Great Rates

2007-12-20T09:58:00.000-08:00

‘Twas the night before Christmas and all through the house,
People like you were finding the best rates online with a mouse.

The stockings were hung by the chimney with care
And smart investors were online because best rates are found there.
We exchanged presents wrapped in green and red
While visions of great returns danced in our heads.
From home equity and mortgages to checking and CDs
I, too, looked online to find the best rates for me.

It started when gift-giving made my finances a bit low
So I put some cash in a certificate of deposit (CD) and watched it grow!
Like a child playing with a brand new toy,
I was pleased to find a high APY that I could enjoy.

As a gift to my parents, I helped them refinance their mortgage loan
I found them a low 30-year fixed, so their payments won’t grow.
They’re able to make the monthly payments with ease
And they say it makes owning a home feel like a breeze.

For those who already own their home at this time,
Perhaps the gift of choice should be a home equity line.
With the Fed cutting the rate again and again,
Rates are the lowest they’ve ever been. (Well, almost.)
If you want to tap into your equity, now may be the time,
To pay off your credit card debt so it doesn’t continue to climb.

By using rate tables, I filled my wallet with cheer
And ensured that gift-giving will be a little easier next year.
Finding ideal rates online has become such a cinch
Never again will I need to be a Scrooge or Grinch.
Bring out the holly, garland, and yule log,
Offer everyone some sugar cookies and egg nog.
Use tables to check rates and make your finances soar,
Happy rate shopping to all, from my home to yours!

Should You Tap into Your HELOC to Pay for Gifts?

2007-12-18T10:57:00.000-08:00

Around this time of year, it’s hard to ignore that little voice telling you to shower those you care about with love. Even more confusing is figuring out how that voice seems to find its way from your heart to your wallet every year as you run up your bills trying to purchase items that show precisely how much you care. (Of course, those advertisements flaunting cars and jewelry boxes donning pretty ribbon bows don’t help either.)

In looking for another method of payment, you may think that using a home equity line of credit (HELOC) may be a good alternative route to use to pay for your gifts. But how appropriate is it to use your HELOC to pay for gifts this holiday season?

A HELOC is typically attached to an interest rate which is linked to the prime lending rate. The interest rates on HELOCs are usually the prime rate plus a margin that financial institutions determine. However, if you have excellent credit, sometimes you can qualify to receive the prime rate. Use the Internet to shop for the most competitive offers on HELOCs.

Because of this variable rate, frequently the overall benefits of HELOCs are dependent, in part, on the rate environment. For example, if you had a HELOC between July 2003 and March 2004, your rate would have stayed relatively steady because the prime rate hovered at 4%. On the other hand, if you had a HELOC from March 2004 to July 2006, your rate would have more than doubled from 4% to 8.25% (Source: Federal Reserve Board).

This potential interest rate fluctuation is one reason HELOCs should be meant for short term spending. By keeping your HELOC use short term in nature, you can help avoid paying more than necessary for unexpected prime rate increases.

If you want to use your HELOC to pay for your holidays this season, try using it to pay off your credit cards. Since HELOCs tend to have lower interest rates than credit cards, by using your HELOC to pay off your credit cards, you should save money by lowering the interest paid overall. Furthermore, the interest paid on HELOCs may be tax-deductible. Always check with your tax preparer for full details.

Remember that you don’t have to spend a lot this season to show your friends and family that you care. You can spend thousands of dollars on gifts, but the best things in life are free. Spending time together should be a higher priority than spending dollars. This season, be sure the gifts you give are wrapped in love.

Keeping Faith in Your Deposits

2007-12-12T09:57:00.000-08:00

After the most recent Fed rate cut, it may be a challenge to keep up with the changing rate environment in savings, CDs, and money market accounts. Despite the federal funds rate being at its lowest since January 2006, there are still great rates available. To seek out the right rate for you, consider the following:

Keep an eye out for promotional rates. Most banks will continue to offer promotional and teaser rates to attract new customers. Take advantage of these promotional and teaser offers.

If you are in the market for a CD, consider going the non-traditional route with a bump-up, no-penalty, add-on, or step-rate CD.

The bump-up rate CD will ensure that if rates rise during your term and your bank offers a better rate than your initial one, you will be able to bump your rate up.
The no-penalty CD should also be a consideration because it gives you the option of withdrawing a portion of your money from your CD during your term without penalty.
An add-on CD allows you to add funds to your CD during your term.

A step-rate CD is a CD with a specified term with you rate increasing (or stepping up) to a higher rate at specified intervals. For instance, a 24-month step-rate CD may start at 4.5% and rise .25% every 6 months, ending at 5.25%. Financial institutions are required to quote an APY for every CD. With the step-rate CD, it is called a “blended” APY which takes into consideration the various rate increases during the term of the CD. As a result, you will have a better idea of the overall return on your step-rate CD. When considering this CD, compare this blended APY against the APY of your other options.

	1^st 6 months	2^nd 6 months	3^rd 6 months	4^th 6 months	Overall (Blended) APY
Regular CD	5.00%	5.00%	5.00%	5.00%	5.00%
Stepped Rate CD	4.50%	4.75%	5.00%	5.25%	4.75%

As you can see in this example, even though the step-rate CD has a higher APY during the last 6 months of the term, the standard CD has a higher APY overall and thus, would be the better choice.

When opening CDs, consider laddering them (or staggering your investment into CDs of different terms).
Example of CD laddering:

Term (in mos)	Amount	APY	Maturity Date
3	$5,000.00	3.00%	March 2008
6	$5,000.00	3.50%	June 2008
12	$5,000.00	4.05%	January 2009
24	$5,000.00	4.40%	January 2010

Laddering your CDs (or opening up CDs with various terms) gives you the flexibility to move the funds to alternative savings options (such as other CDs or money market accounts) as each CD matures. This will maximize your earnings while still allowing you to take advantage of the higher APYs offered by longer term CDs.

By staying positive and finding alternative ways to invest your money, you can ensure that your savings yields positive earnings. Have faith in high interest rates because they’re always out there.

Savings to Satisfy Your Sweet Tooth

2007-12-06T09:55:00.000-08:00

Roald Dahl’s Charlie and the Chocolate Factory is a beloved children’s book-turned-movie-turned-movie, but is there more to the story than just a kooky chocolatier’s quest to find an heir to take over his business? Grab your Golden Ticket as we look at what investment lessons can be learned from Dahl’s collection of colorful characters.

Augustus Gloop: Don’t get in over your head. Unlike chocolate fiend Augustus Gloop, a smart investor would not overindulge in their investing endeavor. You want to be sure to have a comfortable amount available in relatively liquid accounts to ensure that you have access to them in case of emergency. It is a good idea to have aggressive savings goals, but not to the point where you always have to dip into your savings to constantly cover day-to-day expenses. You should try to not touch your savings unless it is an emergency.

Violet Beauregarde: Diversify your portfolio. Drawing from the experience of gum-chewing champion-turned-blueberry Violet Beauregarde, it would not be wise to stick with only one type of investment. Typically, it is smarter to diversify your investments to offset any negative impact other investments may have. For example, in addition to a prolific portfolio of stocks and bonds, an investment portfolio should consist of other safe FDIC-insured products, such as CDs, money market accounts, and savings to cushion any negative changes the market might suffer. Regardless of which products you use to save, always shop for the best rates.

Veruca Salt: Be patient with your investments. Miss Veruca Salt illustrates the value of patience through her lack thereof. Salt’s expectation of immediate returns on any and every demand made, financial or otherwise, is a poor choice. Holding expectations similar to Salt’s will only lead to sour disappointment. Smart investing takes time, not only in waiting for investments to mature, but also in researching the various options and tracking the best interest rates available. Furthermore, having a clear understanding of your short and long term expectations can help you decide how and where to save in order to achieve your goals.

Mike Teavee: Use technology to get what you want.
Like televisionophile Mike Teavee, as an investor, you can use technology to your advantage. The internet is a very convenient tool anyone can use to research the best interest rates and any promotions available in your market. Traditional brick and mortar banks may offer internet-only rates and promotions that are not available at their branches. Furthermore, a number of banks are internet-only entities and are able to offer very competitive interest rates on various accounts, such as checking, CDs, savings and money market accounts.

Charlie Bucket: Invest regularly and within reason.
The eventual winner Charlie Bucket did not come from a rich family. Nonetheless, his family always found a way to save up enough to buy Charlie a chocolate bar for his birthday. Like the Bucket family, regardless of what kind of income you have access to, the smart investor will always find a way to pull together a bit to save. Even the smallest little bits help because something is always better than nothing. Scheduling automatic deposits into your savings accounts can help facilitate your savings goals by guaranteeing that a certain amount of money will be deposited into your savings automatically. Start with what you can afford and you can increase this over time.

Willy Wonka: Make investments in and for the future. The most important lesson one can take away from this story is that which is illustrated by Mr. Wonka himself: the importance of investing for your future. Whether it is for your children or your retirement, investing early will surely leave you breathing in the sweet smell of success and peace of mind.

Home Equity Loans: By the Figures

2007-11-28T06:55:00.000-08:00

The equity in your home is a frequently overlooked asset and it is not typically the first option people consider when they need some cash. Here are a few interesting figures about home equity loans to consider the next time you are seeking financing for various projects and purchases:


$1,019 billion	The volume of home equity loans has reached $1,010 billion according to the 2006 U.S. Census. This figure is up from $314 billion in 1995 and $500 billion in 2001. If you are going to join the masses and tap into your home equity, be sure to secure the best rate by using the Internet to research available rates (Source: Harvard Joint Center for Housing).

91%	Ninety-one percent of homeowners consider the equity in their primary home “a useful financial asset” according to a 2006 survey by Harris Interactive for Countrywide (Source: Countrywide Home Loans). Given the competitive interest rates and potential tax benefits of taking out a home equity loan upon a primary residence, it’s no wonder so many people consider their equity an asset. To enhance these benefits, you should try to find a home equity loan that has the best rate.

55%	Fifty-five percent of those surveyed stated that they used their home equity loan to repair their home, as stated in the Home Equity Lending Monitor 2006, published by Synergistics Research Collaboration. Other purposes included debt consolidation (32 percent), vehicle purchase (24 percent), appliances or furnishings (15 percent), and travel (8 percent) (Source: Synergistics Research Corporation).

1 in 4	Approximately 1 in 4 households have first mortgages and home equity loans according to the 2006 U.S. Census. This figure has increased by 4 percent from 2 years ago (Source: U.S. Census).

18%	Eighteen percent of those surveyed considered understanding the opposite sex easier than understanding the home buying process according to a study by Harris Interactive for Countrywide in 2005. Those surveyed also considered programming a DVR or TiVo (55 percent) and taxes (28 percent) easier than understanding the process of purchasing a home (Source: Countrywide Home Loans; ConsumerAffairs.com).

7.83%	The current national average for a $50,000 home equity loan with a 15-year term is 7.83 percent. The national high rate and low rate are 11.75 percent and 5.63 percent, respectively (Source: Informa Research Services). Shop online for the best rates.

Saving Up Doesn’t Have to Tie Your Money Down

2007-11-15T07:10:00.000-08:00

Just because you want to save a bit of money doesn’t mean that you have to lock your money away for a long period of time. The key is to find smart ways to save that will allow you the flexibility that fits your financial situation.

One way to earn competitive interest rates while still having access to your money is to open an interest checking account. While many people tend to dismiss checking accounts as a way to save, many banks offer competitive annual percentage yields (APYs) on their interest checking accounts. In fact, at about 5 percent of financial institutions, an interest checking product boasts the institution’s highest APY (Source: Informa Research Services). Interest checking accounts allow you to spend your money freely with unlimited check writing while still earning up to 4 percent, or 6 percent if you satisfy certain requirements (such as direct deposit, using a debit card, etc...).

Additionally, with the exception of the aforementioned 5 percent, many financial institutions offer money market accounts that tend to offer substantially higher APYs compared to their interest checking accounts but with limited to no check access. Be sure to shop online to find and compare rates. Additionally, keep your eyes open for promotional rates and products that many financial institutions offer.

If having accessibility to your money is not your top priority, certificates of deposit (CDs) might be a good option for you. Since you should typically try to leave your money in your CD until the end of the term, laddering your CDs may be a good idea. Laddering your CDs can provide you with some of the monetary liquidity of other accounts while still allowing you to reap the benefits of high APYs. By laddering your CDs, not only can you maximize your returns, but you will also have money becoming available at different times. For instance, depending on your financial situation, you may want to deposit your money in CDs that mature in increments of three, six, or twelve months. Thus, you don’t have to be concerned about not having money available and you can make sure you make the most of your CDs. In addition to laddering your CDs, consider using some of the non-traditional CD options that are available, such as those with bump-up rates, add-on features, and no-penalties for withdrawals during the term. Get the best rates by shopping online to see what different financial institutions are offering.

By using a few of these savings methods, you can feel better knowing that your money is working for you while still being available for unexpected purchases and other expenses.

Treat Yourself to an Improved Home This Autumn

2007-11-09T07:31:00.000-08:00

Has the list of desired repairs and renovations become so long that it sends chills up your spine? A few improvements may be exactly what you need this season, and with the recent rate cut, this may be a good time to open up that home equity line of credit to improve your home. Here are a few ideas to help you get started:

Repair your roof. In preparation for the rough winter weather ahead, this may be a good time to get any leaks or damage on your roof repaired. To help cover the costs, consider using your home equity line of credit to help fund this project.

Forget the pumpkin patch; plant some vegetables. It’s no wonder autumn is called harvest season; there are numerous plants and vegetables that thrive in the mild weather autumn offers. Use this opportunity to replenish your garden and repair any damage left by a hot, dry summer.

Make your backyard warm and toasty. The temperature may be dropping almost as quickly as the leaves in your backyard, but that doesn’t mean that all your social gatherings must move inside. Consider using your home equity line to add an outdoor fireplace to keep you and your loved ones warm when the weather begins to get chilly. On a smaller scale, a fire pit can help serve the same purpose.

Because the interest paid on home equity lines of credit can be tax-deductible, home equity lines are beneficial and flexible ways for you to access funds to help make your tax season a little less scary this year. Be sure to inquire with your tax preparer for full details concerning tax-deductibility. Your home equity line of credit can help you have a fabulous fall season without the frightful bill.

Tips for Capturing a Mortgage Fit for a Secret Agent

2007-11-06T11:19:00.000-08:00

It might not take an international secret agent like James Bond to get a great mortgage, but picking up a few pointers from the professionals doesn’t hurt either.

While most people look primarily for the best interest rate, an attractive mortgage is more than just the best rate. Both lender’s fees and prepayment penalties can put thousands of dollars between you and owning your home. Here are some pointers to help you acquire a mortgage fully equipped with “all the usual refinements” and save thousands on financing your home.

Ask the right questions and go with your intuition.
Mr. Bond never needs to ask a lot of questions, but he always knows the right ones to ask. Likewise, you should feel free to ask questions until you feel comfortable with the mortgage you have selected.

Similarly, don’t be afraid to ask questions about the lender’s or broker’s fees, which may also include points. According to the Real Estate Settlement Procedures Act and Regulation Z of the Truth in Lending Act (TILA), the lender is required to fully disclose the cost of borrowing before your mortgage loan is finalized.

Always have an escape route available.
In the world of fictional espionage, there seems to always be a way out of every sticky situation. In mortgages, this is not always the case. However, one way to keep an escape route open is by opting out of a prepayment penalty loan. This will come in handy if life decides to throw any unexpected curves your way. For instance, you may plan on buying and living in a house for 20 or 30 years. But what happens if you have an unexpected career change or life event that requires you to sell the house during the first few years of owning it? Or what if rates drop next year and you would like to refinance? As long as you don’t have a prepayment penalty, you can either sell or refinance your house as needed without paying a hefty fee. Prepayment penalties can be effective anywhere from the first six months to three years into the mortgage loan. Thus, this decision depends on how much flexibility you anticipate needing in the near future.

Furthermore, in addition to the aforementioned full disclosure of fees, Regulation Z of TILA also stipulates that for refinanced mortgages, through the right of rescission (or cancellation), the consumer has three business days to cancel their new loan without penalty.

Never fall for the tricks.
In the classic spy flick, the villain’s antics are typically predictable. Similarly, the popular “bait-and-switch” move is one of the oldest tricks in the marketing book, so don’t fall for it. Many financial institutions that offer mortgage loans use their best rates and lowest fees to lure customers into their establishments. However, there may be stringent requirements to qualify for the advertised offer. Often times, if the consumer does not meet all the requirements, they will then be offered a higher rate. To avoid falling victim to this predictable scheme, research mortgage rates before going to the financial institution, and know your credit score.

Use the resources available, such as the Internet, to research and become knowledgeable about mortgages and you’ll see that with a little preparation, it doesn’t take a super spy to find a great mortgage.

Make Sure Your New Home Purchase is a Perfect Fit

2007-10-25T11:02:00.000-07:00

Your home can say as much about you as your outfit. And just like shopping for a tasteful, classy wardrobe, shopping for a new home has its challenges. However, like choosing new clothes, there are a few helpful hints that will save you loads of time and trouble.

Choosing the Right Style
When choosing a mortgage, research the different types available and realistically consider which will fit your budget and lifestyle. Furthermore, gaining a complete understanding of precisely how the various mortgages work should help you make a better decision. For instance, even though the thought of lower monthly payments is tempting, unless you are anticipating a steady increase in your income over the term of your mortgage, an adjustable rate mortgage may not be the best option for you.

Furthermore, know your credit score and credit history. Months before you go look at any properties, check your credit history and make sure it is accurate. By federal law, you are entitled to a free credit report every 12 months from three designated consumer credit reporting agencies. These free credit reports can be requested by mail, phone, or the Internet through the Annual Credit Report Request Service (Source: annualcreditreport.com). If your credit history is less-than-perfect, you may consider consulting a credit counselor to help you manage and budget your finances to improve your credit score. You will find it troublesome to have to clear up inaccuracies on your credit report while trying to get approved for a mortgage for your dream home.

Finding the Right Size
Look for a home that suits both your family and your budget. Figure out how much you can afford and try to buy a property that is within your budget. The rule of thumb is that you should aim to spend about a third of your gross annual income on housing. Another way to figure out an approximate housing budget is to deduct your regular necessary expenses (such as food, utilities, car payments, etc…) from your gross income. This should help give you a good idea of how much you can afford to spend on monthly mortgage payments. You need to also remember that the cost of a home includes other costs such as maintenance and utilities which tend to correlate with the size of the home. Moreover, it might be wise to try to leave room in your budget to include saving for emergencies or other unexpected expenses.

The “Little Black Dress” of Properties
Lastly, despite the popular mantra of “living-in-the-moment,” try to keep a property’s future resale and equity in mind when looking for your new home. While a vogue home or location may be all the rage at this moment, choosing a classic, timeless home will pay off in the long run, especially if you intend on tapping into your home equity at a future date through a home equity loan or line of credit.

Don't Get Caught in the Web of Online Shopping

2007-10-23T07:23:00.000-07:00

From Amazon to eBay, you can pretty much find anything you can imagine online and for sale. Because of this, it doesn’t take much to get caught up in the tangles of shopping on the web. It’s easy, convenient, and the shopping is truly endless. Racking up credit card debt while shopping online is almost effortless, especially considering that credit cards are considered to be the safest and most common means of payment in the online marketplace. But a few small changes can make this costly habit a bit easier to control. When using credit cards, be sure you are getting the most out of the ones you use. If you use credit cards with reward incentives, be sure they are ones that you benefit from and can take advantage of regularly. For instance, for the shopper who frequents Amazon.com, the Amazon Visa may be a good choice. Not only can you accumulate one point for every dollar of regular purchases, but also three points for every dollar spent on Amazon.com. Once the cardholder accumulates a total of 2,500 points (every $834-$2,500), they receive a $25 gift certificate to use on Amazon.com. For certain shoppers, this can be a way to increase their savings (Source: JPMorgan Chase). Reevaluate the credit card accounts you have. Once every few months, look at which cards you’ve used online and benefited from. If it wasn’t as easy as you thought to get that free flight to New York, reconsider other credit card travel programs. Perhaps your dollar could get you further on another credit card reward program. With all credit cards, be sure and pay your balance in full every month. This will help you avoid being charged interest and late fees, and it will make the effects of your online spending more obvious. Be selective with your credit card use to avoid getting stuck in the tangles of web-induced credit card debt. Doing so will make your shopping experience that much more enjoyable.

Choosing the Right Mortgage Can Be a Thrill

2007-10-16T10:31:00.000-07:00

While the thought of paying off an entire mortgage may have your stomach flipping, either from excitement or nerves, choosing a mortgage loan can be a lot like choosing a roller coaster at a large theme park: exciting, a little daunting, and important to your future well-being and happiness. Like coasters and other amusement rides, mortgages come in a variety of shapes, sizes, and speeds to accommodate your personal taste and situation.

Choose the size of your adventure: teacups or colossus? Even at the largest theme park, rides are offered in a variety of sizes from “kiddie” rides for the little tikes to the extreme coasters that push the limits of speed, gravity, and the adrenaline rush. Likewise, most financial institutions offer a variety of mortgages made to fit homeowner needs. These usually come in the form of conforming mortgages and jumbo mortgages. The main difference between these choices is that conforming are under the threshold (currently, $417,000 for a single-family residence) set by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation (more commonly referred to as Fannie Mae and Freddie Mac, respectively), whereas jumbo mortgages are over the $417,000 threshold.

Mortgage term: How long is your favorite ride?
Another factor that coaster buffs consider in deciding which coasters to ride is the length of the ride. Would you rather have a slow and steady five minute ride or an adrenaline-packed 30 seconds? Similarly, the term of a mortgage loan, or the amount of time over which you have to pay the mortgage loan back, should influence your decision. While longer mortgage loan terms allow you to have lower monthly payments, some people might prefer the financial and psychological comfort of paying off their mortgages more quickly despite the larger monthly commitments (i.e. a 30 year fixed vs. a 15 year fixed).

Speaking of monthly payments, consider your spending habits and abilities over the term of the mortgage. For instance, a balloon mortgage typically requires very low payments in the beginning, but the balance of the mortgage is due in full all at once. While the low starting payments may be tempting, be realistic about whether you will be able to pay off the loan in its entirety when it is due.

Are you ready for that 300-foot rise?
The most obvious and attractive features of coasters are the loops and the drop. Likewise, many people only notice the interest rates attached to mortgage loans, and with good reason. Interest only adds to your monthly payments and the overall cost of your home; thus, you should use resources, such as the Internet, to shop for the best mortgage loan interest rates.

Mortgage loans come attached to a fixed or variable rate (also called adjustable or floating rate). If the rate is variable, look at what interest rate caps are in place (both annual and lifetime). Interest rate caps can apply not only to the frequency and amount of interest rate changes, but also the total adjustment in the interest rate over the entire span of the loan.

Lastly, in making any financial decision, be sure that you understand the terms and conditions of the mortgage loan you decide to take. You can save yourself hundreds and thousands of dollars by simply understanding what is expected of you and what you should expect from the lender. Having this thorough understanding will ensure that you can enjoy the thrilling ride to homeownership.

Mortgages: Protect Yourself Before You Wreck Yourself

2007-10-11T10:16:00.000-07:00

At the end of August, the Bush administration called for a more detailed disclosure of mortgage loan terms and settlement costs. However, if one were to read the Federal Deposits Insurance Commission (FDIC) laws and regulations (because they are such a fun read and we all have that much free time on our hands), one might be surprised to find that many tools are already in place to ensure full disclosure of said details. So, how can you avoid being yet another cautionary tale of mortgage mishap? Here are a few helpful tips:

Educate yourself. According to the White House Press Release, President Bush and his administration plan on enforcing a number of programs to promote consumer mortgage loan education. The home buying and financing process is not a simple process, and since a home purchase is frequently the largest purchase most people will ever make, it is something buyers should definitely take the time to understand.

A common complaint among borrowers, particularly those who took out subprime mortgage loans, was that they did not understand the terms of their loan. Thus, this is why some see education as an effective tool in preventing an inflated level of default mortgages.

Another common complaint among mortgage holders was that the terms of their loan had changed by closing. Thus, these homebuyers ended up with mortgages and interest scenarios that were not ideal for them or their financial situation. Had these borrowers been more aware of the different loan options that were available, they may have been able to avoid their current high cost loan. There are a number of tools, including the Internet, that you can use to research rates and find available loan options.

Don’t be afraid to scrutinize. While most of us probably sign documents that are placed in front of us in the blink of an eye, it is important to know what terms and conditions to which you are agreeing. In addition to general knowledge concerning mortgages, being familiar with the mortgage loan vocabulary can help you better recognize bogus terms or interest rates. The purpose of written documentation is to ensure that both sides understand the terms to which they are agreeing. If either side neglects to read the fine print, once they sign it, they have agreed to whatever is stated in the document, regardless of whether they meant to or not.

While the government will continue to create more safeguards to protect consumers, doing your part as a responsible borrower can ensure that you don’t run into any surprises down the road.

Could Your Home Be the Key to Your New Car Purchase?

2007-10-09T07:36:00.000-07:00

Could using your home equity as your auto loan provide you with some extra gas money? For many homeowners, the answer is yes. Because many people frequently overlook this huge asset in which they reside, they end up spending thousands of dollars more in interest and finance charges. However, using a home equity loan (HEL) to finance your new car purchase is not entirely risk-free. Thus, a clear understanding of what exactly the process entails is necessary to avoid becoming a victim of a financial hit-and-run. The most obvious feature of any loan is the interest rate and rightly so. A lower interest rate will, indeed, lower the amount added to the cost of financing your vehicle purchase. Another factor to consider is that the interest paid on a HEL may be tax-deductible. (You should check with your tax preparer for full details.) Moreover, the monthly payments on a HEL can be lower than those on an auto loan because of HELs typically have longer terms than auto loans. Instead of paying back your balance over 5 to 7 years, a HEL allows you 10 to 15 years to pay it back. However, interest is not everything in choosing a loan to use; there are a number of other factors to consider and one such factor is the additional fees that are added to your loan. These can come in the form of finance charges or closing costs. In either case, your main objective should be to keep these as low as possible. In fact, according to a 2004 report, the Consumer Federation of America found that exorbitant “finance markup charges” that were set arbitrarily added at least $1,000 to the cost of auto loans which cost consumers up to a billion dollars a year (Source: National Consumer Law Center). Like most questions concerning money and finance, there is no single, definitive answer that works for everyone. Deciding whether to take out an auto loan or a HEL depends on the interest rates and various promotional offers available. When you finally decide to treat yourself to that new ride, remember to consider the aforementioned factors to help you appropriately weigh your options. Doing so will have you sliding into those comfy bucket seats, pressing that pedal to the metal, and leaving any financing doubts or regrets in the dust before you know it.

How Much Does a No-Cost Mortgage Cost?

2007-10-05T08:31:00.000-07:00

Free press. Fat-free. Free gift with purchase. It seems like anything that’s “free” is harmless and generally, a good thing. People will jump at the opportunity for something that is sans cost. But should you be jumping for a no-cost mortgage loan?

So, what exactly is a “no-cost mortgage”?
A no-cost mortgage loan is a mortgage in which the upfront fees are paid by the lender at closing. These fees include many of the settlement costs, but keep in mind that there are some costs, such as prepaid taxes, or title charges, that cannot always be paid by the lender. Typically, the only fees that are waived are those that fall into the category of “lender fees.”

How much does a no-cost mortgage cost?
A no-cost mortgage costs nothing out of pocket at closing. However, a no-cost mortgage may result in having a slightly higher interest rate. Nonetheless, the difference between the interest charged on a no-cost and regular mortgage loan tends to be very small. You should use the resources available to you, such as the Internet, to shop and find the best rates and fees.

Who would benefit from a no-cost mortgage?
Depending on your situation and personal finances, a no-cost mortgage may or may not be the right option for you. Some homebuyers may opt to use the cash they save to furnish their home or perhaps upgrade the conditions of their home. It may be advantageous to use the cash you save by not paying the upfront fees to get the mortgage loan to finance these purchases because it will be affected by a lower interest rate than many other loans, such as credit cards.

No-cost mortgages are not for everyone. It is really a matter of preference. You need to weigh the importance of paying closing costs upfront against paying a slightly higher rate over the term of the mortgage loan.

Although there are protective measures in place, such as the Truth in Lending Act, regardless of which loan you choose, you should be sure to read the details contained in the fine print to ensure that you are truly getting (and paying) what you think you are. Additionally, one can use the Internet to research their available loan options, both traditional and no-cost.

Explore Your Options of Non-Traditional Certificates of Deposits

2007-10-05T07:58:00.000-07:00

In order to attract your business, financial institutions will offer promotional certificates of deposit (CDs) for limited periods of time. The annual percentage yield (APY) for 12 month CDs is currently topping off at 5.6% (averaging 3.93% nationally), the minimum amount required to open typically ranges from $1,000 to $10,000, and there are often conditions that must be met (Source: Informa Research Services). For instance, sometimes the account must be opened online, and you can only deposit new money, which means that the funds must come from outside the institution.

Promotional CDs can help you get the most out of your money. The only disadvantage would be that your money is generally not liquid, but that is the case with most CDs. So if you are in a situation where you can afford to put your money away without touching it for six to twelve months, then you should definitely look into banks that are offering promotional CDs. There are a multitude of CDs that have attractive features depending on your financial needs.

Bump-up CDs
Most CDs have fixed rates, but some banks offer CDs with a “bump-up” feature. For some financial institutions, this feature is only available on their promotional CDs; for others, this is a feature that is available on their regular CD accounts as well. The bump-up feature allows the customer to bump their lower rate up to the new, higher APY if a bank offers a higher rate during their term. Also, there may be a limit on how many times you can bump up your rate – sometimes twice, but most often once. Therefore, with a bump-up CD, you have to watch the rates at your financial institution carefully so you will know the best times to raise your APY.

Before you get a bump-up CD, you have to do the math and make sure that it will benefit you. The bump-up feature should be seen as a welcomed option because it allows you to lock in a good rate, but also take advantage of a better rate if one comes along. Bump-up CDs are typically more popular in rising rate environments. If you decide to open a bump-up CD when rates are beginning to drop, you probably won’t lose money, but you also won’t be able to take advantage of your bump-up option either. Be sure to keep an eye on what rates are available so that you can decide whether a bump-up CD is the best choice for you.

No-Penalty CDs
With a no-penalty CD, your money is much more accessible to you than it is with a traditional CD. Most traditional CDs will charge a penalty if the money is withdrawn before the end of the term, and this penalty comes in the form of a loss of interest. A no-penalty CD, on the other hand, offers the ability to withdraw money without incurring an interest penalty. Here are a few good questions to ask before investing your money in a no-penalty CD:

How soon after opening the account will you be able to make a withdrawal?

How many withdrawals are allowed?

How much can you withdraw? Sometimes you need to leave a certain percentage of the principle amount in the account.

Once you know the answers to these questions, you will know whether a no-penalty CD is the right savings tool for you.

Add-on CDs
The third major type of non-traditional CD is the add-on CD, which allows the customer to add funds to the CD during the term. Some banks offer this feature on all their traditional CDs. Just as with the bump-up and no-penalty CDs, you should carefully look into whether the ability to add funds to your account will come at the expense of a higher APY, and if it does, you must consider exactly how important this feature is to you. Also, some add-on CDs have limits on how much money you can add to your account. Sometimes an account holder can add no more than the originally invested principle, and other times, a minimum add-on amount is required, for example, $100, $500, or $1,000. Be sure that you know any limits or requirements such as these before investing your money in an add-on CD, so you do not get caught by surprise.

With any CD, make sure you know all your options, and be sure to compare interest rates and special offers. It is also a good idea to check out promotions and offers that are available any time you have a CD that is renewing. Know your financial situation and what you want out of your savings account, so that you will be able to find the best offers that fit your financial needs.

What Documents Do You Need to Get Approved for a Mortgage?

2007-09-26T08:40:00.000-07:00

Getting a mortgage home loan might seem like a tedious process, but if you do your part to look good on paper, you can increase your eligibility for the best interest rates. Financial institutions primarily consider three main areas in determining who is eligible for a mortgage: employment history, credit history, debt to income ratio (which is the percentage of income that goes to expenses). As proof of these, most financial institutions will ask for a selection of the following documents in considering your request for a mortgage loan.

Employment

Last two years’ federal tax returns and/or W-2 statements
Financial institutions typically use your past tax returns as verification of your employment and earnings.

Pay stubs Most financial institutions will ask to see your most recent pay stubs, usually covering the past month. Your pay stub must have your name, your social security number, your employer’s address, and your year-to-date earnings. These help them to gauge whether you will be able to handle your monthly mortgage payments.

Employment history
While your pay stubs provide your financial earnings, your employment history gives the financial institution an idea of the nature of your employment. Generally, a record of steady employment is going to work in your favor.

Credit History

Credit report, including current creditors and account information
A credit report, including a list of your current creditors and the corresponding account information is useful to a financial institution because it allows them to see how you have dealt with your past loans. This list should include the details (i.e. minimum monthly payment and balances) of all student loans, auto loans, credit cards, and child support payments. By establishing a solid credit history, you can avoid having to pay higher interest rates that frequently accompany subprime mortgages.

Expenses and Payments

Bank statements
In order to verify your banking assets, financial institutions will most likely want to see up to three months of your most recent bank statements.
Complete record of assets
Additional assets that should be reported upon applying for a mortgage loan should include mutual funds, retirement accounts, real estate titles, and stock certificates. These not only promotes your qualifications as a worthy risk for the financial institution, but they can also help you secure a lower interest rate.
Canceled rent checks
If you are currently renting, canceled checks that were used to pay rent can be proof that you are punctual with your payments. Some financial institutions may ask for the name and address of your landlord instead of the canceled checks.
Information about desired property or property type
Providing the financial institution with a description of either the property you want to finance or at least a description of the property helps the financial institution decide if any of the loan programs would be right for you.

Having these documents gathered and ready to go when you are in the process of shopping for a new home will help your mortgage application process go smoothly.

Parents, How Are You Investing In Your Children?: How to Set up a College Savings Program

2007-09-26T08:36:00.000-07:00

Calabasas, Calif. (Business Wire) – Raising a child requires an intense investment of time, money, and emotion among countless other things. And while time and emotion are the highly romanticized types of investment in children, the financial investment is not one to be ignored. The economic cost of raising a child (including college) is currently estimated to be between $200,000 and $300,000 and constantly on the rise. Regardless of how old your child is, it is never too early to start thinking about how to pay for their college education. In fact, in most cases, the earlier parents begin considering how to pay for college, the better.

In addition to the various education savings accounts, parents should consider opening a high-yield savings or CD account while their child is still young. Not only do these types of investments frequently come with higher interest rates, but given that the investment is made early in your child’s life, the account should have time to fully mature. What could be more comforting for any parent than watching both your child and his or her college funding grow together?

Furthermore, before investing, research the various types of savings accounts that are available and decide which best fit you and your finances. While 529 plans are very popular, they frequently incur various fees and restrictions, which can offset the overall benefits of one’s investments. For instance, 529 plans must be used to pay for educational expenses. If the funds are withdrawn for any other reason, a fee is charged; thus, upon opening a 529 plan, one is committing their money to education whether the beneficiary intends on attending college or not. On the other hand, sometimes such restrictions can safeguard the investment from being misused.

To help maximize the success of your investment plan, you should consider setting up an automatic transfer into whichever savings account you decide to set up. Not only does this ensure consistent contributions over the years, but also, in some cases, there may be additional benefits to setting up an auto-transfer. For instance, the Coverdell Education Savings Account (CESA) sponsored by Madison Mosaic Funds waives the account fee of $12.50 to $25.00 if automatic contributions are made (Source: savingforcollege.com).

Needless to say, there are a number of investment options, many of which share very similar features. However, it is the distinct differences between them that should guide your decision. For example, the CESA is very similar to the 529 plan except that the CESAs can also be used for primary and secondary school expenses (in addition to college costs) and they have a limit on how much can be given to each child per year (which is currently set at $2,000). Given one’s situation, these features may convince or deter one from choosing either of these types of savings accounts.

To achieve the goal of investing in your child’s college education, remember that there are other sources of funding available for any given college-bound student. From scholarships to federal aid, the funding opportunities for students are endless. However, it is easy to forget that parents need not carry the burden of funding every last cent of that coveted college experience. However, having a plan in place won’t hurt either. Educate yourself and make funding your child’s education a breeze.

Use Your Home to Get Away: Home Equity Loans with Frequent Flyer Programs

2007-09-24T08:48:00.000-07:00

Calabasas, Calif. (Business Wire) – Just because you’re paying off an unexpected expense by using a home equity loan or line of credit doesn’t necessarily mean that vacation needs be out of mind. Many financial institutions partner up with airlines to offer customers a way to earn miles while conveniently using the wealth they’ve built through the equity in their homes to pay off emergency medical expenses or fund a remodeling project.

The rewards offered by these companies range from 1,000 to 5,000 miles upon taking out a home equity loan or line of credit. While these won’t automatically get you flying first class to your destination of choice, they will get you at least part way there.

However, before enrolling in a mileage program and applying for a home equity loan or line of credit, check out the lending organizations. A few thousand miles are nice, but if there is a better deal somewhere else (or even better, somewhere else that offers miles as well), you will regret having not done your research first.

Even if you don’t plan on traveling or if you never end up redeeming them for a ticket or upgrade, you can donate your unused miles earned on your home equity loan or line of credit to the charities with which the airlines have partnerships. Some of the charities that have partnerships with airlines include the Make-A-Wish Foundation, the American Red Cross, and a number of research organizations and children’s hospitals. These miles might not be tax-deductible, but they are for a good cause. Besides, it’s not often that you can contribute to a good cause for free. As long as the miles earned from your home equity loan are used, whether it is by you or by someone else, these programs seem to be a win-win-win situation.

So put your seat backs and tray tables in the upright and locked positions and get ready to take off with your home equity loan!

Which Team is Your Mortgage Broker Playing For?

2007-09-20T08:51:00.000-07:00

As the popular sports saying goes, “The best offense is a good defense.” The same can be said for using a broker to get a mortgage.

Navigating the terrain of mortgages—including terminology, conditions, and the process as a whole—can be a challenge, to say the least. Thus, to help alleviate some of the pain often associated with mortgages, many homebuyers seek the help of mortgage brokers to assist in making the process a little less daunting.

While most mortgage brokers do their work in the best interest of the homebuyer, here are a few tips to make sure you get the most out of your home financing experience.

Acquire basic knowledge about mortgages and how they work. Avoid meeting with a mortgage broker or loan officer without any knowledge of your own. While brokers will take the time to explain the fine (and not-so-fine) print, having basic knowledge under your belt will help you better understand the terms to which you are committing.

Research available rates online. Brokers work with a number of lenders to offer you a wide assortment of financing options and competitive prices. There are a number of resources available online and in print that you can reference for the most current and up-to-date rates. By becoming familiar with the rates available, you will be able to better evaluate the rates you are offered by your broker.

All borrowers have the right to full disclosure of all fees, terms, and penalties associated with their loan, so don’t be afraid to ask your broker questions. These questions can range from the details of the mortgages you are considering to the nature of their fees. Asking these questions should help establish a good working relationship with your broker. Also, this should help clear up any confusion concerning your mortgage. For example, ask you broker about prepayment penalties. You may not realize that the offer of a lower rate comes with potential restrictions.

Consider seeking out an Upfront Mortgage Broker® (UMB). According to the Upfront Mortgage Brokers Association (UMBA) website, “UMBs disclose their fees…in advance and in writing and disclose the wholesale prices passed through from lenders” (Source: www.upfrontmortgagebrokers.org). This can help ensure that both you and your broker have a clear understanding of what is being agreed upon. The UMBA also states that UMBs represent the homebuyer and the homebuyer’s best interest when shopping for potential loans. Furthermore, instead of increasing their commission from rebates or concessions they receive from third parties, UMBs pass along these credits to their clients.

By taking heed and completing your own pre-mortgage training, you and your broker can be a winning team.

Use Your Home to Send Your Child to Their Home Away from Home

2007-09-17T09:01:00.000-07:00

We’ve all seen those stickers that proudly boast ”University of Southern California Mom“ or “Harvard Dad.” What they should really say is “Pay to the Order of USC” or “Sending the Checks to Harvard University.” If you’ve ever funded the college education of any loved one, then you know the feeling. While you may not have much of a say as to where your money goes, you can choose where that money comes from, and one option to help fund a college education is a home equity line of credit.

With a home equity line of credit, you have a certain amount of funds available to you (depending on how much equity you have in your home), but you do not have to receive them all at once, which is the case with a home equity loan. Instead, you can withdraw money whenever you need it and only pay interest on the amount you borrow. Also, the interest that you pay on a home equity line of credit is usually tax-deductible. Check with your tax advisor for more details.

If you are still a little uneasy with the thought of using your home equity to pay those hefty college bills, think of it as an investment. Using home equity to fund home improvement projects to increase a home’s fair market value is not uncommon. Similarly, funding your child’s education will theoretically help him or her in the job market, just as home improvements are intended to increase your property’s value in the real estate market.

Lawyer and President of Harvard University Derek Bok once said, “If you think education is expensive, try ignorance.” To ace the financial test that funding a college education may bring about, do your research and study up on the best rates so you can be assured that you are getting the best home equity line of credit available.