President Obama’s, until very recent, opposition to gay marriage is a blue ribbon example of emotions driving policy making decisions. The same goes for those voters in North Carolina. The word marriage is something wholly inseparable from our emotional constitutions. It involves the ephemeral and indescribable feeling of love, at least it should, and pragmatism gets tossed out the window when we discuss matters of the heart. The same holds true for opponents of the ban, their philosophical foundation rocked by the notion that any government policy would prevent someone from loving another person. And this is where the same-sex marriage debate gets mired in a quicksand pit of its own making.

To this writer, from a purely pragmatic perspective, the gay marriage issue is a financial issue. Were you to, forgive the pun, but divorce the word marriage from the debate and start passing pieces of legislation that allowed gay couples to file joint tax returns, make health care based decisions for one another, buy a house together, etc… I don’t believe the voting public would rally around an opposition to those things. Toss the word marriage in there and the situation goes nuclear, pushing everyone on either side of the debate to an emotional DEFCON 1.

The fact of the matter is, marriage is a religious, not public policy term. The government’s use of the term marriage is to define the financial situation of taxpayers, hence the term ‘common law marriage’ applied to live-in heterosexual couples who for all intents and purposes are ‘married’ but haven’t taken vows, knelt in a church or engaged in the chicken dance in front of family and friends over cooling plates of prime rib and empty cocktail glasses. Culture, not government defines marriage. We would all do well to remember this in an effort to tamp down the rhetoric. But, it’s an election year so who am I kidding.

In the world of your personal finances, cold hard rationalizations are what are going to keep you secure and financially safe. We don’t invest in company’s because we like the name, or give our friends $10,000 because they are our friends and they think they’ve invented the next Shamwow in their garage. You don’t buy a house you can’t afford because the window treatments are pretty and the tire swing reminds you of grandma’s farm. You may want to, but you don’t.

Now for the payoff as I graciously thank you for your attention during my diatribe. With a housing market still plump with quality, cost-friendly property’s, many people are seizing this moment to jump into the home owning game. But all this talk of marriage got me thinking, what if you’re not and you want to buy a house with someone, anyone, that you’re not joined to in financial government sanctioned matrimony. Can you get the same tax benefits, protections?

We say it over and over on the Quizzle Wire, but reality is repetition you’ve finally stopped ignoring. If you want to buy a house, are even casually thinking about it, check your credit. Too often first time, and second time for that matter, homebuyers realize all too late that their credit needs improvement to secure a sensible home loan. Credit scores can improve, but it takes time and discipline.

So if you want to buy a house with a partner, check your credit and then watch this video before you sit down to discuss this with you’re potential co-buyer. And remember, love and money – like emotions and public policy – never mix.

Mixed Emotions – Finance, Obama, Gay Marriage and Quicksand was originally featured on Quizzle Wire

Quizzle.com is the easiest way to get a complete understanding of your credit. Visit Quizzle.com to get your free credit report and score. No credit card or social security number necessary!

According to a report released by the National Association of Realtors today, median home prices in 74 of 146 metropolitan areas measured for the survey. That’s a considerable increase from the increases seen in only 29 areas last quarter. This price stabilization is owed to a 22 percent decrease in the number of available, pre-owned, homes on the market from a year ago. That, and record low mortgage rates have helped the market discover its bottom.

Good News for Buyers and Sellers
Potential buyers haven’t missed a friendly market just yet, but the window for scooping up a great house at an incredible price is quickly closing. The good news is the balancing of the market might encourage more sellers to list their property, increasing the supply and keeping prices steady, but still rising. Furthermore, mortgage rates remain historically low. If you’re looking to buy a house, now’s the time. If you’re serious you should start by checking your credit for free – no social security or credit card information needed – at Quizzle.com Not be a shameless self promoter, but in addition to the free credit report and score you’ll receive, the Quizzologists track mortgage rates, provide advice on how you may be able to improve your credit score with an easy to follow action plan tailored to your needs, and recommendations on the types of mortgages for which you are eligible.

The good news for sellers is clear. The market is stabilizing and the value of your largest investment is hopefully on its way to its former glory. Depending on the market your in, if you’re looking to sell and move, you can now get a more appropriate price on your home and find a great deal on your prospective new home. All in all a real estate market stabilization is good for everyone involved. The Quizzle Wire offers articles and advice on all aspects of home buying and selling. Take a look around and see what you can see. If you have actual questions, the Quizzologists are on hand ready to find you answers. Leave a question here and we’ll respond.

Home Prices Stabilizing, Rising was originally featured on Quizzle Wire

Quizzle.com is the easiest way to get a complete understanding of your credit. Visit Quizzle.com to get your free credit report and score. No credit card or social security number necessary!

But beyond Spring Cleaning for your house, you can also do Spring Cleaning for your credit. Start the spring with a renewed energy for your financial life.

Here are 6 simple steps to “Spring Clean your credit:”

1. Get a free credit report: Quizzle offers you a free Experian credit report that can help you find out the details of your credit history. And getting your Quizzle free credit report won’t affect your credit score – it’s just free information for you to use. There’s no obligation and no strings attached!
2. Fix errors on your credit report: In case you see any inaccurate information on your credit report, don’t worry – you can get the errors corrected. Many people have errors or inaccuracies on their credit reports that might be dragging down their credit scores. You don’t have to let this happen to you. Spring Cleaning your credit is all about clearing out the clutter and moving forward with a cleaner credit history.
3. Improve your credit score: Once you “know the score” on your credit, you can set out to make improvements. The higher your credit score, the easier it is to get approved to borrow money, and you can also borrow money more cheaply by qualifying for lower interest rates. Here are a few ideas for how to improve your credit score as part of your Spring Cleaning.
4. Check on the value of your home: Do you own your home? Are you thinking of moving, selling your home, or refinancing your home? As part of your Spring Cleaning, it helps to find out the approximate market value of your home. The Quizzle Home Value Estimator can help you make better informed decisions about refinancing your mortgage or setting a selling price for your home.
5. Find out your options for a home loan: If you are not yet a homeowner and want to buy a home, or want to refinance your mortgage, Quizzle offers home loan recommendations to help you find the right home loan to meet your financial goals.
6. Set a budget to move forward: Once your credit Spring Cleaning is complete, you can set a new budget to better balance your income and spending, and support your pursuit of long-term financial goals. Quizzle offers free budget planning tools to help you align your income and expenses, and feel more confident about your money management each month.

Spring Cleaning can be fun if you approach the task with a spirit of optimism and purpose. In the same way, Spring Cleaning your credit might be the best way to start fresh with your personal finances.

6 Steps to Spring Cleaning for your Credit was originally featured on Quizzle Wire

Quizzle.com is the easiest way to get a complete understanding of your credit. Visit Quizzle.com to get your free credit report and score. No credit card or social security number necessary!

Every time people apply for a credit card, take out a loan or sign up for a mortgage, it’s important to understand the risks, obligations and benefits of your financial decisions.

We hope the Quizzle blog can be part of improving your own financial literacy, helping you save money and spend smarter while making better choices about your money.

For other resources, check out MyMoney.gov and the federal Consumer Financial Protection Bureau.

April is National Financial Literacy Month – are you ready to learn? was originally featured on Quizzle Wire

Quizzle.com is the easiest way to get a complete understanding of your credit. Visit Quizzle.com to get your free credit report and score. No credit card or social security number necessary!

What does HARP 2.0 mean for your mortgage?

During the past few years of the housing market downturn and recession, many Americans found themselves “underwater” on their mortgages. They were living in homes that they could no longer afford due to lost jobs or lower incomes, but they were unable to sell or refinance their houses due to a drop in the value of the home.

Most homeowners who are underwater on their mortgages are in a difficult predicament because banks often cannot refinance a loan if the homeowners have low credit scores, or if the value of the house does not appraise at an acceptable level.

In March 2009, the federal government instituted a program called the Home Affordable Refinance Program (HARP) that was intended to help homeowners who were underwater on their mortgages get federally-backed mortgage refinance loans. Unfortunately, many of the people who most needed help did not qualify for help under the terms of the program because it was too hard to qualify based on the home’s value.  

To try to help more distressed homeowners qualify for mortgage refinancing, the U.S. government recently announced the launch of HARP 2.0 – a revamped program with new requirements. An estimated 1.6 million Americans might qualify for mortgage refinancing due to the streamlined requirements of HARP 2.0. 

Even if you’re underwater on your mortgage and need help with mortgage refinancing, here are a few reasons why HARP 2.0 might help your family get a more affordable monthly mortgage payment:

• Easier to qualify for HARP 2.0: Under the original terms of the 2009 HARP program, borrowers needed to have a loan-to-value ratio less than 125%. That means if you own a home valued at $100,000, and you owe $125,000 (or more) on your mortgage, you wouldn’t qualify for HARP. Considering that many U.S. cities have seen several years of double-digit declines in house prices, there are many families who were too far underwater to qualify for help under HARP. With the new HARP 2.0, it’s easier to get help based on the value of your home. The main restriction is that your home has to be worth less than the amount of your mortgage.
• But you have to be in good standing: HARP is meant to help people who have been making a good faith effort to pay their mortgages each month. To qualify for a HARP 2.0 mortgage refinancing, you need to be current on your mortgage with a good payment history for the past 12 months. Another restriction of HARP 2.0 is that your mortgage loan must be owned by Fannie Mae or Freddie Mac, and your loan cannot have been refinanced previously under the first HARP program.

For more information about eligibility requirements for HARP 2.0, check out the program details at MakingHomeAffordable.gov.

HARP 2.0 is expected to be available through the end of 2013. Talk to your mortgage company to see if you qualify, or contact a Quizzle specialist at 1-800-QUIZZLE if you have more questions about mortgage refinancing.

Whether you’re underwater on your mortgage or comfortably staying afloat with your personal finances, Quizzle.com can help you save more money and spend smarter. We offer free personal finance tools and resources to help you create a stronger financial foundation, set a budget, improve your credit, and enhance your financial life.

Could HARP 2.0 Help Me? was originally featured on Quizzle Wire

Quizzle.com is the easiest way to get a complete understanding of your credit. Visit Quizzle.com to get your free credit report and score. No credit card or social security number necessary!

 

Homeowners often think that if interest rates drop that they should run out and refinance their property. While a lower interest rate can save you money, it doesn’t mean that a refinance is the right move for you. It’s important to evaluate several different factors, such as the long-term costs, the timeframe of your loan, the APR, the costs for refinancing and the length of time you expect to live in the home.

Long-term Costs

During the first half of your mortgage, you are primarily paying interest and very little goes toward reducing the principal balance of your mortgage. This means that every time you refinance, you go back to paying mostly interest as part of your mortgage payments. In the long-term, you end up paying more money when you refinance, even if you end up shaving off some money on your monthly mortgage payments.

Extends Your Loan

Every time you refinance your mortgage, you are starting your loan from scratch. If you have had your existing mortgage for five years, then you might only have 10 or 15 years left to pay on your loan. When you refinance into a new 15 or 30 year mortgage, you have now extended the amount of time that you have to pay on your mortgage.

Evaluate the APR

Besides the mortgage interest rate, you also need to evaluate the annual percentage rate, APR. The APR is the annual cost of borrowing money expressed as a percentage. The APR takes your mortgage interest rate and closing costs into consideration to reveal to show the true cost of borrowing the money for your refinance. This means that even when the interest rate on a mortgage is lower than what another lender is offering, the lender offering the lower APR is offering you the best deal overall.

Length of Time in the Home

If the home is a short-term home for you then a refinance might not be as beneficial as a long-term property. The best way to determine if a refinance is beneficial is to calculate a break-even analysis. Divide the total closing costs by the savings in your monthly payment.

This provides you with the number of months it will take you to recoup the closing costs. If you intend on living in the home for this timeframe or longer, then you will recoup the costs before leaving the home. If not, a refinance is not in your best interest.

Other Costs

Closing costs are not the only costs you have to factor in to the equation. Other costs include the prepaids you are responsible for paying. You are responsible for prepaying the interest on the mortgage. Additionally, the insurance and the taxes must be prepaid on the property. These costs should make it into your evaluation when deciding if a refinance is in your best interest.

Lower interest rates do not automatically equate to a time to refinance. You have to look at other factors beyond the interest rate to truly determine if a refinance is beneficial for you.

Refinancing: Look Beyond the Lower Interest Rate was originally featured on Quizzle Wire

Quizzle.com is the easiest way to get a complete understanding of your credit. Visit Quizzle.com to get your free credit report and score. No credit card or social security number necessary!

Before you purchase any big-ticket item, you should do your homework. Buying a home for the first time is no exception to this rule. Fortunately, many homebuyers that have come before you have paved the road of success. Learn from their mistakes so you can avoid making the same ones.

It’s All About the Mortgage Payment

Many first time homebuyers make the mistake of focusing on the mortgage payment. They figure that if it’s in the same neighborhood as what they’re paying in a rent, they can afford to be a homeowner. Not evaluating the costs of homeownership beyond the mortgage payment is a big mistake because there are numerous other costs to consider when buying and maintaining a home:

• Closing costs
• Down payment
• Maintenance costs for upkeep on the home
• Home repairs
• Replacement costs

Finding a Home First, Financing Later

Many people think they should find the home they want to buy and worry about establishing the financing for the purchase later. In reality, the order should reversed. You should set up the financing  first. Pre-qualifying for a mortgage provides you with the amount of a mortgage you can qualify to obtain, which also tells the price range of homes you should be viewing.

At the very least, establish the financing in conjunction with looking for homes. The last thing you want to do is find the home of your dreams to only be disappointed when a lender won’t finance the purchase.

Going it Alone

You wouldn’t diagnose an illness without consulting a doctor or perform surgery on yourself. You shouldn’t try to buy or finance a home without help from professionals who know what they are doing either. Real estate agents, attorneys, tax consultants and mortgage advisors all provide you with the advice, guidance and information you need to make informed decisions.

Emptying Your Savings for the Down Payment

You’ve been saving up for this day for years and now you’re going to write the check for the down payment. You decide you’ll drain the account. A lower mortgage amount means a lower monthly mortgage payment, right?

Yes, it does, but if you don’t have a cushion of savings then you are in big trouble if you have a cash emergency. Make sure that you put a down payment amount down on the home that is comfortable for you, but don’t deplete your savings in the process. Maintain a cushion in the bank in case you have a personal or house emergency.

Financing New Furniture and Appliances

New homeowners tend to run out and put on credit new furniture and appliances to complete their dream home. Financing these items increases your out-of-pocket costs for making these purchases. Instead, spread out your purchases so that you can pay cash and avoid incurring interest on other purchases.

Buying a home for the first time is exciting. It is also a road with many holes if you don’t know what you’re doing. Learn from those that have made mistakes before you and avoid these common pitfalls when buying your first home.

Is a new home in your future?  Get your free credit report, see today’s rates and start planning your future – responsibly.  

5 First Time Homebuyer Mistakes to Avoid was originally featured on Quizzle Wire

Quizzle.com is the easiest way to get a complete understanding of your credit. Visit Quizzle.com to get your free credit report and score. No credit card or social security number necessary!

Banks, mortgages lenders and other traditional lenders may have stricter lending criteria, but private mortgage lenders may be reaping the benefits. Private mortgage lending has become a more popular option for various types of borrowers and for various reasons. According to the LifeComps Commercial Mortgage Performance Index, private mortgages provided a 2.79 percent total return in the second quarter 2011, which is an increase over the 1.72 percent in the first quarter.

Who

The types of borrowers that tend to apply for private mortgages fall into two categories: 1. Borrowers that cannot qualify for a traditional mortgage 2. Investors or buyers that want a quick turnaround time on financing.  In a lending environment that is harder than ever to obtain traditional financing, borrowers are turning to alternative methods to obtain the financing they need to realize the dream of homeownership.

What

Private mortgage may not be a term you are familiar with, but the concept is similar to how it sounds. Instead of obtaining a mortgage or loan from a mainstream lender, the lender is either a private investor or private lending company. A private mortgage lender may be a family member or it may be a complete stranger. Either way, the private mortgage is a legally binding agreement and should be treated as such. While private mortgages tend to be easier for poor credit borrowers to obtain and faster than applying for traditional mortgages, private mortgages also have some drawbacks. Private mortgages tend to have: 1. Higher interest rates than traditional lenders 2. Shorter terms than traditional mortgages (usually terms of five years or less).  The terms and conditions on a private mortgage, however, are negotiable, so you may be able to work out a deal with the person you know or the investor.

How

If you’re in the market for a private mortgage, you can find someone you know that has and is willing to lend you the money. You also have the option to go through a private mortgage lender, which acts as a matchmaker between borrowers like you and investors that have money to lend. Either way, once you find the private lender, you then go through the negotiation of the terms and conditions of the private mortgage. Once the down payment, mortgage amount, interest rate and number of years of the mortgage are settled, all of this information is put in writing. The borrower signs a promissory note agreeing to repay the mortgage loan. A private mortgage works the same as a traditional mortgage from that point on. Private mortgages often give borrowers the chance they need to buy a home and build their credit. If you do obtain a private mortgage, ask the lender to report the mortgage to the credit bureaus. If you always make your loan payments on time, this helps to increase your credit score. With a higher credit score, when the short-term private mortgage is up, you can refinance into a traditional mortgage, which usually includes a lower interest rate and better terms and conditions than the private mortgage.

Make sure you keep on top of your credit score and monitor your reports, so you can put yourself  in the best borrowing position.

In Tough Lending Times, Private Mortgages are on the Rise was originally featured on Quizzle Wire

Quizzle.com is the easiest way to get a complete understanding of your credit. Visit Quizzle.com to get your free credit report and score. No credit card or social security number necessary!

Many homeowners across the country have a mortgage balance that is more than what their home is worth. This phenomenon is known as an “upside-down mortgage” or an “underwater mortgage.” Refinancing the mortgage is typically not the solution because a lender does not want to lend more money than the home is worth. Because underwater mortgages are a problem nationwide, several options are available to homeowners that are in this situation – options that allow the homeowner to stay in their home and the lender to continue receiving the mortgage payments due.

Mortgage Modification

The first option that underwater mortgage borrowers should start with is a mortgage modification request. You request a mortgage modification with your current lender. When you contact the lender, ask to speak to a representative in the loss mitigation department. Representatives in the loss mitigation department are the only ones who can assist you with your mortgage modification options.

Essentially, a mortgage modification changes or modifies the terms and conditions of an existing mortgage. Lenders have the option to approve or deny the mortgage modification according to their own set of qualifying criteria. A mortgage modification can include a reduction in your mortgage balance, a change in your interest rate, an adjustment to your monthly payment, or a change in the term (i.e. number of years left on your mortgage).

[Mortgage Help: Get your free credit report and see if your credit score is mortgage qualified]

The Home Affordable Refinance Program (HARP) is a federal government mortgage assistance program. This particular program allows certain borrowers to refinance their mortgage, even if the mortgage amount is more than the market value of the home. To qualify for this program, the first requirement is that you have a Fannie Mae or Freddie Mac mortgage. To find out if your mortgage is owned by Fannie Mae or Freddie Mac, you can contact your lender or look it up online.

To apply for HARP, contact the mortgage company that services your loan.

Other Assistance Program

Because underwater mortgages are a growing problem and stopping foreclosure is the reason for implementing assistance programs, many other home assistance programs exist. Again, start with your existing mortgage lender to see which options may be available to you. The goal of each of the programs is to save your home, so your existing lender can guide you to some or all of the programs you may be eligible to apply.

If you owe more money on your mortgage than your home is worth, then you have an underwater mortgage. In a traditional lending market, refinancing an underwater mortgage has odds that are slim to none. Since it is a widespread problem across the country, numerous programs are available to help homeowners save their homes from foreclosure. While you may not qualify for all of the programs, it is likely that you may be able to qualify for at least one program that is available.

Always start with your current lender, rather than responding to offers you receive from unknown solicitors in the mail. Your lender is the most qualified to guide you in the right direction.

Related articles:

• A Guide to Black Friday and Cyber Monday
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• Personal Finance for Couples: 5 Things Both Partners Need to Know
• Mortgage Rates: Why What You See Is Not What You Get

Options to Turn Your Upside-Down Mortgage Right-Side Up was originally featured on Quizzle Wire

Quizzle.com is the easiest way to get a complete understanding of your credit. Visit Quizzle.com to get your free credit report and score. No credit card or social security number necessary!

You’ve probably read articles or saw on the news that mortgage rates are at “historically low levels.” This news may have even caused you to act, calling your mortgage lender and checking out a couple of other lenders. The mortgage rates that these lenders are quoting you are low, but not as low as you expected. Find out why the rates you’re hearing about and the rates you are receiving as quotes don’t quite match.

Rates Change Constantly

The primary reason you may receive conflicting information is that mortgage rates tend to change on a daily basis. In some circumstances, mortgage rates may even change multiple times during the day. Even a slight delay between when you hear about “mortgage rates hitting record lows” on the news and when you have a chance to contact your lender can make a difference in the rate you’re quoted.

Generally, interest rates do not swing from one end of the spectrum to another in quick-time. So, when you obtain a phone quote, you may see an eighth or a quarter of a point difference. And don’t forget, the difference can go either way. You may find the interest rate the lender quotes you is higher than what you read or heard about, but you may also find it is lower.

Points Matter

The mortgage rates you read or hear about on the news versus what you receive as a quote by phone may also vary according to the number of points you are paying. Points are pre-paid interest and one point equals one percent of the loan amount.

A news article or even rates published on a lender’s website may be rates assuming you’re paying one, two or even three points, which lowers the interest rate, but requires that you bring more cash to the closing table. Always look at the fine print when viewing published rates online or in print to see how many points are assumed, so you can be sure you’re comparing apples to apples.

It’s All in the Score

[Mortgage Help: Get your free credit report and see if your credit score is mortgage qualified]

If you don’t have a good credit score, then your interest rate is likely not going to be as favorable. While you may very well still receive approval on the mortgage, the lender will offer a mortgage rate that matches your risk level as a borrower – or how likely you are to default on your loan – which is measured in part by your credit score.

When you’re checking into whether you can take advantage of “historically low mortgage rates,” remember that mortgage rates are constantly changing and published rates often vary from quoted rates because of things like points and credit scores. The only way to ensure a particular rate is to lock it in with your lender.

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• What’s the Value of a Human Life?
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• Cheap (and Chic!) Furniture by Craigslist
• Struggling with Debt? Consider this Advice from Suze Orman

Mortgage Rates: Why What You See Is Not What You Get was originally featured on Quizzle Wire

Quizzle.com is the easiest way to get a complete understanding of your credit. Visit Quizzle.com to get your free credit report and score. No credit card or social security number necessary!