April 29, 2011
April 29, 2011 by admin
April will go out on a winning note for both the stock market and mortgage industry. The stock market closed at its highest levels since 2008 and a broad recover in the DOW is in full effect. The market has risen almost 100% since reaching its low levels in March of 2009. The Federal Reserve announced this week that they would be holding interest rates at their present levels for the foreseable future. The market seems to be taking the rapidly rising oil prices and slow recovering housing market in full stride.
While investors have been busy purchasing equities, their remains a strong interest in Treasury bonds. Yields on the ten year treasury have dropped below 3.3%, almost fifty basis points lower than their 2011 high marks. The dip in rates is good news for the lending industry which continues to promote refinance loan rates below five percent on thirty year loan terms and in the mid four percent range for fifteen year loan terms. As rates remain at our below five percent they help drive loan activity, but have yet to be a significant boost to the home sales market. The immediate impact of high gas prices has already carried over to retail sales and consumer confidence, but the long term impact remains uncertain on the global economic recovery. Most experts fear this will slow down the recovery, but are uncertain to what extent at this point.
Tips for Saving Money in This Tough Economy
April 27, 2011 by admin
Are you struggling to make ends meet like so many consumers are today? The economy is in dire straights and keeping that precious green stuff in your wallet and bank account can seem hopeless. However, there are a few things you can do which can help you save a considerable amount of money. Here are a few of them.
Considering that a good portion of your disposable income goes toward food, your grocery bill should be the first thing that you should trim. You should get into the habit of using coupons. You have certainly stood in line at the grocery store behind a coupon-using shopper and you were probably a bit envious to see his/her grand total drop drastically as the clerk ran the coupons through the bar code scanner. Check those fliers that arrive in the mail and cut out coupons that can save you money on items you use. You will be surprised at just how much you can save this way. Also be sure to pay attention to packaging when shopping for groceries as some retailers shrink sizes while keeping the prices the same.
Another way to save a good deal of money is by taking good care of your vehicle. Get those oil changes when you know they are due and make it a habit to check fluid levels once a month and the pressure in your tires every few weeks. If you have a friend who works on cars, ask him/her to check your car over for you every month or so. A well-maintained car can potentially save you hundreds of dollars a year or even more.
Take the time to review your home and life insurance policies. Maybe you have been simply renewing the same policies year after year. You can now go online and obtain free home and life insurance quotes which allow you to see what different insurance companies offer in terms of coverage and monthly payments. Simply switching insurance companies could result in you saving a few hundred dollars annually so definitely pull those old polices out and read the fine print.
Consider scaling back on the holidays. Do you really need to spend a ton of money at Christmas time? Hold a family meeting and discuss getting back to the basics over the holidays. Consider giving one another handmade gifts or at least set a limit on how much everyone can spend on presents.
Finally, prioritize your needs, not your wants. Many of us tend to shop impulsively. Learn to discipline yourself when it comes to spending money. Do you really need that new tablet computer or do you simply want it? Learning to buy only what you need is a great way to stretch the money you do have so that there is some available when you truly must buy something new.
Driving Without Auto Insurance Is Not Financially Smart
April 26, 2011 by admin
So you’ve finally bought your dream car. After working so hard just to be able to afford that shiny convertible, you can drive it home at last. Well, now that the key has been handed to you, are you all set? Not exactly.
Before you drive your car around town, you need to have it insured first. Find out why you should, by reading further.
‘But I’m a careful driver, I don’t need insurance!’ Of course you do, in fact almost every state requires you to carry some sort of liability insurance even if you are not directly insuring your own vehicle. Accidents are inevitable; no matter how careful you drive, you can never tell if you will meet an accident along the way. Drunk drivers, vehicle malfunction, and speeding trucks can all lead to accidents and these are something you hardly have control over.
‘But I don’t have money to spend on auto insurance.’ The good news is, you have plenty of options for coverage. You can opt for the minimum coverage, which is auto liability protection. Plus, with the advantage of being able to research and scout for prices on the Internet, it is quite possible for you to find a policy that will fit your budget, no matter how tight it is.
Auto insurance protects you from a huge financial setback such as when you get into an accident, or when your car gets stolen or damaged. Imagine how much money you’d have to shell out if you wrecked someone else’s car, or worse, if you seriously injured someone. You could get sued for damages and your life will be a mess, in just a matter of seconds!
The cost of an auto insurance policy can be significantly reduced if you have a clean driving record and if you are not considered a high-risk driver. The driver’s age and location are important factors that the insurance company will take into consideration when computing premiums. Along with this, the type of car that you drive will also be considered; it follows that the more expensive the car, the higher the premiums will be. Moreover, the safety features in the vehicle such as alarm systems and built-in cushioning are also factored in.
There’s a good reason why vehicle owners buy auto insurance. There’s also a good reason why most states require every driver to have minimum insurance coverage. Think of it this way: if a $1,000 insurance policy can save you $100,000 in damages, how could you even consider driving without one?
Improve Your Credit To Lower Your Rates and Fees
April 21, 2011 by admin
If you want to take advantage of historically low mortgage rates (below five percent), auto financing rates (below three percent) then you will need to have a credit score in the high seven hundred range to qualify for the lenders best financing terms with the lowest amount of loan fees. Bumping up your credit score from the mid 600′s to above 700+ can be done in as short as 30 to 60 days and lenders (not all) will sometime offer you the opportunity to have your score recalculated through a “rapid re-score” process.
Improving your score rapidly can be done in any number of ways, the key is to identify what is keeping your credit scores below average or excellent status. First, you will need to get a copy of your credit scores, preferably a three bureau credit report (Experian, Transunion and Equifax). This report should contain most if not all of your credit data for the past ten years.
So where to start?
First review your report to ensure the accuracy of the accounts that are listed and also review your recent account inquiries for the past 180 days, inquiries (attempting to open new accounts, charge cards, etc) can have a negative impact on your score. If you notice inquiries you did not authorize you may be able to contest these.
Step 2, look for accounts that are showing previous past due, collection, charge off or delinquency status. Verify the accuracy of any late payments and contest any and all open collection accounts with all 3 credit bureaus. If the collection agency does not respond, then you may be able to have these removed and improve your scores as well as eliminate derogatory credit problems from the past.
Charge cards and revolving credit can have a large impact on your overall credit scores. One way to quickly improve your credit profile is to pay down balances below fifty percent of your available credit limits on open credit cards and revolving accounts if you have the financial means. Paying down high interest debts will help both improve your credit scores as well as save you on financing charges.
If you are planning to purchase a home or new car, your credit score can dramatically improve your interest rates and fee requirements. It is important to not have credit inquiries for charge cards, cars, retail store accounts, balance increase, etc before you lock in your new financing. These new inquiries could drop your score 10-40 points, and increase your interest rates costing you tens of thousands of dollars in finance charges. Monitoring your credit with free annual credit report is a great way to stay in tune with your credit profile and help reduce potential financing charges and fees.
April 20, 2011
April 20, 2011 by admin
The market jumped higher on Wednesday as volatility in the markets remains present this week. Stocks are being driven higher by earning reports this week (Intel) as investors are looking to re-balance their portfolios and look past surging oil prices. This is a week that lacks major economic news reports although there was a report today on the existing home sales market which took a surprising turn upward in March. Home sales were lifted almost 4% last month, as investors appear to be gobbling up distressed and foreclosed properties at substantially discounted prices. The jump in home sales was not a reflection of new home buyers or first time buyers reentering the market as numerous reports are showing a lack of confidence in housing remains. There is an increasing percentage of buyers who now believe that owning a home is not necessarily a wise financial investment.
Current mortgage rates remain very attractive for home financing options. Thirty year mortgage loans are being offered around 4.9% by most national mortgage lenders and fifteen year loan programs are being offered around 4.3% with most national mortgage lenders. Rates have been below five percent for almost sixty days and has helped drive refinance applications with mortgage lenders, but has not greatly impacted home buying to date. Yields on the ten year treasury bond were hovering around 3.34% on Wednesday, up slightly this week. The market will be closely following the potential extension of the U.S. governments debt limit increase in the next few weeks. The highly political issue could have an enormous impact on both Stocks and Bond prices in the upcoming weeks. The growing U.S. deficit is a large concern for global investors and debt rating agencies.
Three Most Important Tips You Could Get Before Buying Home Insurance
April 18, 2011 by admin
One of the things that people need to protect and take care of is their home. After all, a home is perhaps the single biggest investment that anyone could ever have. Why wait for a disaster to strike before you even consider buying home insurance?
To people who have recently purchased or built a house, it should never be a question of whether to buy home insurance or not. Rather, the issue is on where to get the insurance policy from, what kind of insurance to get, and for how much. If you are stuck in this dilemma, here are three essential tips to help you arrive at a sound decision.
Tip #1: Never skimp on your insurance policy.
There are many instances wherein it’s good to cut costs, but buying home insurance is not one of them. When deciding how much to insure your house for, you need to take into account three factors: (1) the cost to rebuild your house, (2) the cost to replace the contents of your house, and (3) liability protection. Always consider these factors carefully before you decide on the amount to insure your property for.
Tip #2: Get as much information as you can before making a decision.
As mentioned above, it is necessary to provide sufficient insurance coverage for your home. In order to know exactly how much you should insure it for, you need to get as much information as possible to help you arrive at a sound decision. This means that you should get in touch with a local builder or contractor to get an estimate on rebuilding costs. Additionally, you should also make a list of all your household items and get a rough estimate of how much they cost.
Tip #3: Consider all the necessary add-ons.
To give you peace of mind, you should consider getting riders on top of your basic coverage. This is especially true if you have high value items in your home, such as an expensive appliance or a painting. If you have plenty of jewelry pieces, it would be better if you buy a rider for it since basic coverage only cover a maximum of $2,000 for jewelry items.
Keep in mind as well that standard insurance does not cover flood and earthquake damage. And while most people think it’s nothing but a superfluous expense, availing of flood/earthquake insurance is a must if you live in areas that are vulnerable to these natural calamities.
April 13, 2011
April 13, 2011 by admin
Mortgage rates were trending flat in action on Wednesday the 13th of April. In a relatively quite day for economic news, the market was showing signs of a recovery based on a strong earnings report released by JP Morgan Chase this morning. As one of the worlds largest banks. JP Morgan has grown their profit margins and revenues at an impressive rate following the challenges in the banking sector from 2008-2009. The companies Billions in income will allow it to pursue an aggressive stock buy back program, news that will help investors see a nice uptick in trading price. JP Morgan is one of only a few banks that did not invest heavily in sub-prime mortgage loans and derivatives, both of which are still haunting leading competitors Bank of American and Citigroup.
Yields on the ten year treasury remained flat in trading on Wednesday at 3.53%. The lack of movement in bond yields will help ensure that fixed mortgage rates remain stable and most national mortgage lenders have not made pricing adjustments from posted rates on Tuesday. Thirty year loan rates remain around 4.8% and are attractive for both refinance loans and new home purchase applicants. The potential for rates to move higher remains as a strong possibility in the near future due to the government debt concerns so monitor the market for potential changes.
April 12, 2011
April 12, 2011 by admin
The market is growing ever more concerned about the rising debt levels of the United States and the upcoming showdown over raising the level of borrowing capacity for the Treasury. Last weeks temporary budget agreement has only divided the political parties in the U.S. over how much of the budget will need to be trimmed or eliminated in order for Congress to sign off on a bill allowing the U.S. to increase its deficit limits. The economic crisis of 2008 catapulted the government into a wild spending spree with money earmarked for TARP, Tax Breaks and Billions of dollars pumped into the Treasury Bond Market in an effort to try and keep long term rates at historically low levels. What is all but certain at this point is there will be a major push from the free markets to drive yields higher as pricing continues to decline on bond yields. Further illustrating this likely move was news on Monday that PIMCO, one of the worlds largest investors in Bonds was taking a short position against U.S. treasuries, signaling their belief of the weakness in these bonds and a troubling sign of the challenges the government is going to face in the next few months.
The market is selling off on Tuesday with news out of Japan driving global economic fears as the realization that the nuclear crisis is going to have an impact on their local economy as well as the global markets for the balance of the year. Treasury Yields on the ten year bond were hovering just above 3.5% (3.52) a drop of almost five basis points. The dip will help ease the pressure for rising mortgage rates. Most national lenders were advertising current mortgage rates on thirty year loan terms below five percent last week, and the market appears poised to remain at this level today.
Oil prices have dropped from as high as $112 per barrel to under $107 per barrel today, this easing may continue as fears that the global slowdown will hamper demand for oil in the near term and help slow down the rapid rise in pricing. There remains a number of political and policy influences that will continue to drive the bond market, commodities and mortgage rates for the near future.
Life Insurance Balancing Rates versus Benefit Payouts
April 7, 2011 by admin
Shopping for the Best Life Insurance Rates While Maintaining Optimal Benefit Amounts
One definitely needs to take life insurance if one has dependents that rely on the income of the potential insurance candidate. Leaving behind a spouse or children without financial support is the primary reason everyone needs to have a supplemental insurance policy for financial peace of mind for their loved ones. Furthermore, those in a single income household are even more vulnerable should they not have adequate insurance coverages.
1. Go for life insurance if you really need it: As mentioned before, you should take life insurance only if you have a spouse or children who are financially dependent on you. This insurance is a protection for lost income. If you are doing exceedingly well and your children or spouse is also in a good financial position, you need not take life insurance.
2. Do not think of life insurance as an investment: It is wrong to think of life insurance as an investment vehicle. So think of the coverage amount as money that you’d need when your children are still young or when you have to pay substantial mortgage amount to pay. When your children are financially independent or when there are no more payments outstanding on mortgage, you’d need less protection.
3. Go for Term Insurance: Term Insurance is the simplest and the best for life insurance. You have to pay a low premium amount and you are covered for a sum assured for a particular period of time. If you do not die in that period, you do not get the money back. This may be seen as a drawback but it is the cheapest form of life insurance.
4. Whole life insurance and endowment policies not so good for life insurance: Though these two forms of life insurance are hyped a lot, they involve high premiums to be paid. Although they highlight the ‘money back’ functionality with high returns, the returns after 15-20 years may not be as good as other purely investment instruments like mutual funds.
5. Claims procedure: Check out the claims procedure and how simplified it is for the benefit of the insured. For instance, there have been complains of people who have taken life insurance only to find that they have to go through a series of protocols and also land up with rejection of claims under one absurd condition or the other.
6. Find out the ‘real’ popularity of life insurance companies: You will come to know about the credibility of life insurance companies by going through various blogs, reviews sites and forum sites that give an impartial opinion. You can also check the ratings given from institutions like Mood’s, Standard and Poor’s and A.M. Best apart from checking information in Better Business Bureau.
7. Cut through the hype and look for facts: Life insurance companies may come up with flowery bit of information on how they cover your life as well as investment. But you should know that it is purely coverage for loss of income due to loss of life. So find out which is insurance gives you the best quote for low premiums to be paid.
April 4, 2011
April 4, 2011 by admin
The market is greeting April in the same fashion that it left the month of March as equities continue to trend upward for the month. The big variable to the markets continued success will likely be the uncertainty of rising energy prices. Oil has climbed above $108 per barrel and gas prices in the U.S. are hovering near $4 per gallon, the impact of rising fuel prices will certainly begin to impact both consumers and businesses domestic and international. The DOW has moved comfortably above 12,000 and a strong run could push the market back into levels last seen in 2007. The political uncertainty in Libya remains a key item that could shift the markets quickly, beyond this investors are likely to closely monitor the economic data reports and the beginning of corporate quarterly earning reports due out at the end of the month.
Last week the Non Farms payroll report showed continuing improvement with the U.S. labor markets. There were over 200,000 jobs added last month and the unemployment rate remained under nine percent. The strength of this report helped push stocks higher in trading. Despite a strong showing by the equity markets and rising inflationary pressures, long term bond yields remain relatively unchanged. The ten year treasury was trading at 3.42% on Monday April 4th and marks over a forty basis point improvement over the last sixty days. Improved bond yields have helped to power fixed mortgage rates lower. Thirty year loan terms were available at 4.7% with most national mortgage lenders and fifteen year terms were being offered just above 4%. The great rates are again fueling an increase with refinance loan activity but their long term influence on the housing market and real estate sales is not as optimistic at this time. CaseSchiller reported last week that home prices are continuing to decline in most national markets and the real estate industry remains quite soft at the moment with a lack of buyers driving sales.