Mortgage News in the Carolinas
Budgeting
How To Renegotiate Your Credit Card Interest Rates To Something Lower
0392 days
by Geoff Brown
in Budgeting
Credit card debt, left unchecked, can pile up quickly. Especially for debtors making minimum payments.
According to the Federal Reserve, a credit card balance of $5,000 at 23.99 percent APR won’t pay off for 16,127 years. That’s one reason why it’s important to manage your credit card rates, and renegotiate them whenever possible.
In this 4-minute piece from NBC’s The Today Show, you’ll learn the tested tactics that can cut a credit card rate, and get monthly payments to a more manageable range. And it’s do-it-yourself — no debt management firms required.
Some of the tips in the video include:
- Compare your current rate to the rate offered to new customers. Ask the lender for “new customer rate” if it’s lower.
- If your credit score has improved since application, ask for an interest rate more reflective of your current credit score.
- Be nice to the customer service representative. Kindness helps.
Managing debt is an important part of household budgeting so if you’re finding your credit card payments and/or rates too high for your liking, try following the instructions as described in the video. And, above all else, be persistent. The credit card companies won’t likely approve your first request.
Rent A Home Or Buy A Home : The Case For Both Sides
0508 days
by Geoff Brown
in Budgeting
Is it better to rent a Charlotte home, or to buy one? The answer may not be as clear-cut as you think. In this balanced, 3-minute joint interview from NBC’s The Today Show, you’ll hear the case for both sides.
From the pro-renting part of the talk, there’s valid points about the economic impact of low credit scores and/or no cash for downpayment, and the ongoing, annual cost of home maintenance — estimated at 2% of a home’s value. Plus, renters have the ability to “follow a job” to a new town or region whereas a homeowner may be restricted, somewhat.
From the pro-purchase part, however, there’s excellent points that were made, too:
- Mortgage rates are low and each 1% drop to rates equates to a 9% drop to home price
- Buyers can zero in on a particular area with particular schools or walkability, for example, better than renters
- A home can a piggybank over the long-term; a place for “forced savings” for families that want it
- You can fully enjoy a home and change it into whatever you want.
The segment then closes with 5 of the best cities in which to rent, and 5 of the best cities in which to buy.
Whether buying or renting, don’t try to go at it alone. There’s lot of resources online and I would be happy to refer you to a real estate professional.
How Much Should You Expect To Pay In Mortgage Closing Costs?
0537 days
by Geoff Brown
in Budgeting
How much does a mortgage cost? The answer depends on where you live. But no matter which your locale, chances are strong that you’ll pay more for a mortgage in 2010 as compared to 2009.
According to Bankrate.com and its annual Closing Cost Survey, a typical $200,000, purchase mortgage now carries an average $3,741 in closing costs — up nearly 37 percent from last year.
As defined by Bankrate.com, “closing costs” is defined as the sum of two numbers. The first group is labeled “origination charges”, a category that includes such items as underwriting fees, application fees and processing fees. These fees are paid directly to the loan originator’s company at the time of closing.
The second grouping of costs is labeled “third-party fees”. Third-party fees include appraisals, credit reports, settlement fees and title searches — items paid in connection with the loan, but not paid to the lending bank or broker.
It’s unclear why closing costs appear to have escalated into 2010, but Bankrate.com suggest that recently-enacted federal lending laws are a culprit:
- The new law requires loan officers to be accountable to a Good Faith Estimate’s accuracy. Bankrate.com’s prior-year surveys may have been “understated”, therefore, because of a lack of accountability.
- The cost of federal compliance is high, and banks may be passing on compliance costs to consumers
Please let me know if you have any questions about closing costs and give me a call today at 704.728.6286. Geoff
