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refinancing

Monday’s need-to-know money news

March 2, 2015 By Liz Weston

refinancingToday’s top story: What you need to know before refinancing your mortgage. Also in the news: Signs you’re about to make a bad financial decision, how to detect a less than stellar 401(k) program, and how to limit your risk of tax identity theft.

4 Big Refinancing Questions Answered
What you need to know before refinancing.

5 Signs You’re About to Make a Bad Financial Decision
Pay attention to the warning signs.

7 Clues That Your 401(k) Plan Sucks
How to detect a less than stellar plan.

Protect yourself from tax identity theft
How to limit your risk.

Filed Under: Liz's Blog Tagged With: 401(k), Identity Theft, mortgages, refinancing, Taxes

Tuesday’s need-to-know money news

October 28, 2014 By Liz Weston

late-payments-depression-400x400Today’s top story: The most depressing number in personal finance. Also in the news: The secret language of finance, the changes coming to IRAs and 401(k)s in 2015, and the money moves you should make by the end of the year.

This Is the Most Depressing Number in Personal Finance
Take a guess.

Translate This! How To Decode The Secret Language Of Finance
Like Rosetta Stone for banks!

IRA and 401(k) Changes Coming in 2015
You’ll be able to contribute more next year.

9 Money Moves to Make Before the End of the Year
Tick tock…

When Refinancing Your Student Loans Can Backfire
Thorough research is essential.

Filed Under: Liz's Blog Tagged With: 401(k), debt, financial vocabulary, IRA, money moves, myRA, refinancing, Student Loans

Monday’s need-to-know money news

October 27, 2014 By Liz Weston

crop380w_istock_000009258023xsmall-dbet-ball-and-chainToday’s top story: How high your credit score needs to be in order to refinance. Also in the news: Tips on getting out of debt from people who have paid off thousands, ways to save on monthly housing costs, and how to avoid the scariest credit card fees.

What credit score do I need to refinance?
Reaching the magic number.

How to Get Out of Debt: Lessons From People Who Paid Off $100,000
Learning from the masters.

4 Ways To Save On Monthly Housing Costs
Every little bit helps.

The 5 Scariest Credit Card Fees – And How to Avoid Them
Paying even an hour late could cost you big bucks.

8 Online Banks That Let You Skip the Fees, Enjoy the Interest
Thinking outside the branch.

Filed Under: Liz's Blog Tagged With: banking, credit card debt, credit card fees, Credit Score, online banking, refinancing, tips

Tuesday’s need-to-know money news

May 6, 2014 By Liz Weston

Zemanta Related Posts ThumbnailToday’s top story: How to avoid the 10 most common student loan mistakes. Also in the news: Finding the essential facts on your social security statement, using targeted savings to achieve your financial goals, and how to save money on utilities as the hot weather approaches.

The 10 Most Common Student Loan Mistakes
Learning how to avoid them.

5 Essential Facts on Your Social Security Statement
Where to find these important pieces of information.

How to Use Targeted Savings to Achieve Goals
Using subaccounts to save for specific things.

5 Ways You Can Save Money on Your Utility Bills
Preparing for air conditioning season.

Refinance Wisdom: Should You or Shouldn’t You?
With interest rates expected to creep up, is now the time to refinance?

Filed Under: Liz's Blog Tagged With: refinancing, Savings, Social Security, social security statement, Student Loans, targeted savings, utility bills

Q&A: Helping retired parents refinance

April 21, 2014 By Liz Weston

Dear Liz: I am trying to help my retired parents refinance their home. Currently they are paying over 8% interest. (This loan should be illegal.) The problem is their credit score, which is around 536. They had a tax lien in 2004 (it has been paid off for over four years) and some minor credit card issues. The total card debt is less than $1,000. I see several bad footnotes on these cards. Some of the cards have a balance of less than $100. What is the best and fastest way to help them get the mortgage they deserve?

Answer: Your parents don’t have a single credit score. They each have their own scores. Mortgage lenders typically get FICO scores for each borrower from all three credit bureaus, for a total of six scores. Lenders look at the middle score for each person and typically base rates and terms on the lower of those two middle scores.

If that number is indeed 536, your parents have serious, recent credit problems. You may not think an unpaid credit card is a big deal, but it is to credit scoring formulas, which are designed to help lenders gauge a borrower’s risk of default. People with unpaid bills are far more likely to default on a new loan than people who pay their bills on time, and their respective credit scores reflect that reality. What people “deserve” isn’t a factor. How they handle their credit accounts is.

What you’re calling “bad footnotes” are likely records of late payments and perhaps charge-offs and collections activity. Those typically can’t be erased, but your parents can stop the ongoing damage to their credit by paying their bills on time and paying off any overdue bills to their credit card companies.

If the accounts have been sold to collectors, the process gets trickier. Paying off collections typically won’t help credit scores, but lenders usually want these accounts paid off before they will make a new loan. Your parents can try negotiating to have the collection accounts deleted in return for payment, but they won’t be able to erase the late payments and other negative marks reported by the original creditor.

Once they start handling their credit accounts responsibly, their credit scores will start to improve. The improvements will happen slowly, though, and they may well miss the opportunity to refinance at today’s low levels.

Filed Under: Credit & Debt, Credit Scoring, Q&A, Real Estate Tagged With: Credit Cards, Credit Score, debt, real estate, refinancing

Wednesday’s need-to-know money news

December 4, 2013 By Liz Weston

Today’s top story: Should real estate be a part of your retirement plan? Also in the news: How to avoid resetting the mortgage clock, finding the right financial advisor, and how to manage erratic prescription drug costs. Offering Advice

How Real Estate Fits Into Your Retirement
The risks and rewards of including real estate in your retirement plan.

How to Refinance Without Resetting the Mortgage Clock
Don’t turn the clock back 30 years.

5 Questions to Ask a Potential Financial Advisor
Making sure you find the right person to serve your financial interests.

The Zig-Zag Pricing of Prescription Drugs
What to do with erratic prescription costs.

Are credit cards more expensive now?
How did the CARD Act affect what’s in your wallet?

Filed Under: Liz's Blog Tagged With: CARD act, Credit Cards, financial advisors, mortgages, prescription drugs, real estate, refinancing

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