The Pros and Cons of Refinancing A Mortgage

Author: Steph Medeiros

Refinancing a mortgage can be a wise decision for several reasons. However, it may not be for everyone. According to mortgage experts, homeowners spend an average of seven years or fewer in a home before moving or refinancing. When interest rates are declining, the holding period tends to decrease even more. Like purchasing a home, refinancing a mortgage is a big decision that shouldn't be made on a whim. Consider these pros and cons and speak to your mortgage advisor before making the decision to refinance.

The Pros

1. Can Lower Your Payments - The first reason for refinancing is that it can lower a homeowner's mortgage payments. Since a large chunk of your mortgage payment is designated to go toward interest, refinancing at a lower interest rate can significantly reduce your recurring payments.

2. Can Improve Terms - An attractive option for homeowners is to switch from an adjustable rate mortgage to a fixed rate, or adjust their existing adjustable rate terms. Refinancing can also reduce the length of a mortgage, resulting in long term savings. For instance, when refinancing, you could switch from a traditional 30 year mortgage to a 20 or 15 year mortgage.

3. Get Cash From Your Home Equity - If you have a considerable amount of home equity built up, you may want to consider a cash-out refinance. This option replaces your current mortgage with a new loan with a higher loan amount. The difference between the two mortgages is "cashed out" and the money is given to you to use for whatever you like. You can also use this method to consolidate debts by putting the money toward your bills, rather than getting cash in your pocket.

Cons

1. Up-Front Costs - Typically, refinancing costs are about 2% of the mortgage, though this can vary a great deal depending on the mortgage program you choose. The costs are similar to when you originally took out the loan - application fees, attorney's fees, title search, etc. The general advice from most mortgage experts has been that it's worth refinancing if the money you're saving on payments will pay off the refinancing costs within two years.

2. Time Involved - Refinancing, like taking out a purchase loan, is a complicated process. Be prepared to devote some time into finding the right refinancing option, completing the application process, and to being available for the loan closing. Pulling together the paperwork and providing additional documents if requested does some time and effort - more so if your finances are complicated due to your being self employed or owning several investment properties; or if you tend to be disorganized.

To best determine whether you should refinance or not, do some research on the refinancing options and talk to your mortgage advisor. He or she should be able to look at the numbers with you to calculate your potential savings and answer any questions you may have. Refinancing can have many benefits, but it doesn't always make financial sense for every homeowner. Educate yourself so that you are better prepared to make an informed decision.

Article Source: http://www.articlesbase.com/mortgage-articles/the-pros-and-cons-of-refinancing-a-mortgage-5168192.html

About the Author

Steph Medeiros is a marketing professional who helps mortgage companies promote their brands and products, such as 5/1 ARM loans and 15 year mortgage rates

Fannie Mae Acknowledges Policy Change That Favors Foreclosure Over Loan Modification

Author: Christopher M Lee

In recent months, banks and financial advisors have been reporting an unusual trend. The federally owned and operated mortgage securities bank, Fannie Mae has been quietly encouraging smaller banks--Bank of America and Chase, for instance—to foreclose on homeowners. This comes at a time where the federal government has been making major inroads in helping troubled homeowners behind on mortgage payments save their homes with programs like HAMP—Home Affordable Modification Program.

Glaring inconsistency at the highest levels of government

Fannie Mae's new policy to foreclose on homeowners has been called by members of the press and policymakers a glaring contradiction. The federal government, with President Obama's leadership, has been working since early 2009 to help troubled mortgage borrowers save their homes from foreclosure. The Department of Housing and Urban Development—HUD—has seen its role in the federal government evolve into a position of prominence, as serious domestic issues continue to revolve around a pesky US housing market. 

Fannie Mae-- a federally owned and publicly traded securities bank that owns and is responsible for hundreds of billions of dollars of mortgages—has been pushing banks to foreclose on homeowners who are more than 12 months behind on their mortgage payments. Many see this as contradictory of a federal government that claims to be working to help homeowners keep their homes amidst continued hardship. Across the nation, many homeowners are plagued by high unemployment and an economy that has been unrelentingly sour and prone to starts and fits over the last half decade. 

The Detroit Free Press first reported on Fannie's foreclosure scandal, releasing thousands of confidential documents between Fannie Mae and lenders. The documents, which detailed new rules for lenders working with Fannie Mae, urged lenders to take more dramatic steps with borrowers drastically behind on their mortgage payments. The most astounding on the new rules for banks tacitly implies that lenders stop dragging their feet and foreclosure on seriously delinquent mortgages.

Fannie Mae backbone of US Mortgage System

Fannie Mae has come under serious fire for this new eviction policy as it, too, faced virtual bankruptcy in the last decade. Fannie Mae and Freddie Mac are mortgage-lending giants that were created so other privately held banks could issue more credit. Without Fannie Mae, the US mortgage system would hardly exist as it does today. Fannie Mae has struggled since the housing market collapse in 2007 to remain a solvent and viable way to issue credit to new homeowners—a relationship and practice that has served as the backbone of the US financial system since World War II. Financial experts have raised their eyebrows at Fannie's inconsistency when other federal programs aim to save homeowners from foreclosure. However, Fannie has long been the steward of prudent federal fiscal policy. It may be that time has simply run out for seriously delinquent homeowners.

For more information visit: http://leefinancialhelp.com.

 

Article Source: http://www.articlesbase.com/personal-finance-articles/fannie-mae-acknowledges-policy-change-that-favors-foreclosure-over-loan-modification-5148451.html

About the Author

Christopher Lee, of Lee Law Firm, understands that financial hardships can affect honest, hard-working people. His early experience growing up in a very blue collar family in a rural area of Indiana, made a significant impression on his business philosophy today.  As a child, he watched his family struggle as money didn't come easy and his parent work hard to provide for their family. As a foreclosure attorney in Dallas, Tx his practice has given him the opportunity to help many people keep their homes. For more information visit: http://leefinancialhelp.com

Mortgage Crisis Fallout:Neighborhoods Go From Bad to Worse

Author: Christopher M Lee

In neighborhoods across America—in the most general way of speaking, America at large—continues to feel the awesome wrath of 2007's mortgage crisis. Some people may remember recent federal reports in different states about the damaging effects resulting from mass-foreclosure and short sales: once cherished communities are disappearing or devolving into nests for crime and poverty. In some places, fallen trees and overgrown grass have become inviting habitats for rodents and predators alike.

A supply side economy

In a matter of speaking, homes are returning to the land because of the huge oversupply of houses on the market. Home value is determined relative to many x-factors. Chief amongst them is the value of similar homes in the neighborhood. When those homes don't have habitants, everyone suffers. As an entire neighborhood is foreclosed on, value falls precipitously because it is not just one or two houses in the neighborhood detracting from value, but the entire neighborhood becomes a liability.

Everybody bears the burden of a forsaken home

In places that have been hit the hardest, states like North Carolina and Florida, banks have been accused of dragging their feet in reclaiming homes. Part of the reason is the myriad paperwork and legal procedures banks must process. Second to that is the reality that banks simply don't want foreclosed homes on their balance sheets. These so-called toxic assets are bruises on a bank's portfolio that hurt quarterly reports and discourage investors. In a normal market, the occasional foreclosure is a blip on a bank's ledger. In this market, banks must live in fear of being swamped in foreclosures, which can cause share value to plunge.

City hall and residents in heavily foreclosed-upon neighborhoods must pick up part of the load, too.

Because banks are avoiding reclaiming ownership, foreclosed homes sit and fall into disrepair. Home maintenance fees—mowing the lawn and keeping things trim and neat about the property—can approach hundreds of dollars a year per house. This is yet another reason banks don't want to reclaim their own assets. It costs them even more money. This new financial strain is one many communities simply don't have the tax base to accommodate.

Remaining residents forced to pick up the tab

Some residents in these seemingly destitute foreclosure-laden neighborhoods are calling the ineffable decline in home value ‘tragic.' In one North Carolina community, residents have teamed up to maintain abandoned homes, but the efforts are too little too late to undo the deleterious effects on home prices. The real nature of the housing bubble crisis, say some residents, is that those who remain behind may be picking up the tab for years to come.

For more information visit: http://leefinancialhelp.com.

Article Source: http://www.articlesbase.com/personal-finance-articles/mortgage-crisis-falloutneighborhoods-go-from-bad-to-worse-5170520.html

About the Author

Christopher understands that financial hardships can affect honest, hard-working people. Growing up in a very blue collar family and rural area of Indiana , money didn't always come easy for his parents. The struggles his family faced in his childhood made a significant impression on his business philosophy today. As a Fort Worth foreclosure attorney his practice has given him the opportunity to directly impact the lives of many people. For more information visit: http://leefinancialhelp.co

Tips on Saving Money at the Gas Pump

Author: Cody Lueck

Employees at The Gooch Firm, P.C. are family people.  Nothing makes them happier than packing up the family and heading out on another family adventure.  Several members of our team have recently packed up the family and headed to places like West Yellowstone andMoab.  Like everyone I struggle to show my family a good time, without depleting my bank account.  Through market research, and first-hand experience I have found a few ways that save money at the pump, and get more miles per gallon from your car.  Below are some tips that I have found work wonders for me.  Enjoy.

• First and foremost driving costs money.  Try to limit your driving or look into public transportation such as a bus or our wonderfully useful UTA track system.  


• Maintain your vehicle.  Simple things such as being on top of your oil changes, keeping your tires nice and inflated at the factory recommended level, and changing out heavily used spark plugs will do wonders for your vehicles gas mileage. 


• Fill your vehicle wisely.  Do not simply add $5 to $10 dollars at the pump just to get you to your next destination.  Not only will you be driving unnecessary distances to and from the pump, you will also deplete your vehicle's miles per gallon. 


• Do things that most of us do not often think about.  For example, plan your driving for the day in advance in order to drive the most effective route.  Try to avoid idling, try small differences like parking at a restaurant, as opposed to driving through a crowded drive-thru. 


• There are many different notions concerning whether rolling your windows down, or using the air conditioner uses more gas.  According to my experience and the Automotive Aftermarket Suppliers Association it depends on the vehicle and driving situations.  As a rule of thumb it is more economical to drive with the windows rolled down in slower driving conditions under 40mph.  However in highway driving at greater speeds it is easier on the car, and more economical to drive with the windows up and the air conditioner going.  This does all depend however on the style of your vehicle and how aerodynamic the vehicle is designed. 


• For air conditioning effectiveness it is recommended to blow the hot air out of your car first with the windows down, and then turn on the air conditioning after a couple minutes.  This will make the air conditioners job easier to cool down the car.  If your vehicle has the capabilities have the air conditioner recirculate the air from inside the car, as opposed to sucking in the hot air from outside and trying to cool that down. 

I hope you can implement some of these tips and techniques to save yourself a few dollars at the pump each week.  Remember, only you know how your vehicle drives and how to run your car in the most effective manner.  Do what you believe reacts best with your vehicle and greater gas mileage is sure to naturally happen. 

Article Source: http://www.articlesbase.com/personal-finance-articles/tips-on-saving-money-at-the-gas-pump-5170892.html

About the Author

Jeffrey D. Gooch

Trial Attorney

The Gooch Firm, P.C.

www.thegoochfirm.com

www.utahtruckinglawyers.com 

An Overview of Microsoft Dynamics GP 2010 Financials

Author: Jessica John

Microsoft Dynamics GP 2010 Financials is the system of computerized accounting. It is important for business administrators to take advantage of Microsoft Dynamics GP 2010 Financials to maintain their business accounts efficiently in today's life. The main cause of lagging behind of a firm is not being able to get advantage of modern technology.  All the successful business firms are digitalizing all the manual records for efficient dealing and quick access.

It is important for IT and business professionals to be expert of Microsoft Dynamics GP 2010 Financials to upgrade their skills. MB3-859 is a proctored exam of Microsoft for making one expert of computerized accounts. To pass this exam it is important to understand all the features of Microsoft Dynamics GP 2010 Financials.  

Why computerized accounting?

The course is intended to make the users able to setup Bank Reconciliation and take care of checkbooks, transactions and transfers, deposits, void transactions, transaction flow and integration etc. the candidate will be able to deal with all the problems of accounting in the firm. The computerized method of record keeping and accounting is much easier, accurate and precise than manual accounting.

The candidates will be able to set up and maintain vendors, vendor classes, aged trials, balance reports, transactions and payments. They will learn to deal with period-end and year-end procedures. All the firms have to deal with these financial matters and every firm is ready to hire the experts who can manage accounts through latest technology. The one who has hands on latest technology finds one's place in such firm.

All the information related to the management of accounts of a firm through Microsoft Dynamics GP 2010 Financials is covered in MB3-859 certification exam. This certification is important for executives, IT professionals and IT instructors. Self Engine Exam has the best preparation materials; PDF guide that has Question & Answer method of explaining the syllabus and Offline Practice system that is more like net practice before a tournament, to make the candidate master of Microsoft Dynamics GP 2010 Financials.

Self Exam Engine Tools

Self Exam Engine offers the best preparation material for guaranteed 100% success in MB3-859 exam. This website is most reliable online exam service provider that covers the complete syllabus of the test. Feel free to download new saving pack with 25% special discount. Users can MB3-859 free questions download for getting an idea of the questions that will be asked in exam.

Article Source: http://www.articlesbase.com/accounting-articles/an-overview-of-microsoft-dynamics-gp-2010-financials-5165399.html

About the Author

The trust of 20000 successful IT professionals

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Raising the Debt Ceiling Avoids the Spending Addiction

Author: SARTRE

The latest example of political hyperbole is that the U.S. Treasury is ready to default on its debt. An actual examination of the underlying facts is that the relative purchasing value of the currency has long ago swindled debt holder in U.S. Bonds of their promised returns. A default defined under this definition is part of the equation. Repudiation of the entire debt obligation is the real fear. Contrary to all the public scare tactics that the financial world will stop turning, the Federal Treasury has ample revenue to pay the interests on bonds and notes that come due. The essential issue is whether the new bond lenders are willing to roll over the debt that is coming due and keep the shell game going.       

The late conservative journalist, Robert Novak's favorite president was Calvin Coolidge, he is known for saying, The Business of America is Business.

The real statement comes from a speech by Calvin Coolidge called "The Press Under a Free Government" which was given before the American Society of Newspaper Editors in Washington, D.C. on January 17, 1925. The quote is really: "After all, the chief business of the American people is business." However, Coolidge goes on to say that, "Of course the accumulation of wealth cannot be justified as the chief end of existence." He discusses journalism and the thought that the business interests of newspaper owners should not taint reporting. He continues, "American newspapers have seemed to me to be particularly representative of this practical idealism of our people."

A seminal truth about governments is that they do not function as a business. Every commercial enterprise eventually needs to pay their bills, since limitless borrowing is not an option for lenders. Bankruptcy is a favorite technique for repudiating debt, just ask the General Motors bondholders. Every survivor of the 2008 meltdown knows the rules of the game are now a moving target.

The media invariably seeks to blame the Congress for bringing the country to the brink. Most narrow in on the Republican Tea party freshmen as unreasonable. Little criticism is directed towards the intransigent Democratic leader Senator Reid. The reporting by the press no longer mirrors the standards of 1925 journalism, and the government no longer represents the practical idealism of the people.    

Read the entire article on the BATR archive page
http://www.batr.org/wrack/073111.html

Discuss or comment about this essay on the BATR Forum
http://forum.batr.net/showthread.php?tid=1273

Article Source: http://www.articlesbase.com/politics-articles/raising-the-debt-ceiling-avoids-the-spending-addiction-5084573.html

About the Author

BATR is a comprehensive view on the human condition. Several sites comprise this anthology. The emphasis stresses an in-depth analysis of the realpolitik that influences society and the individual. Ideology matters. In an age where the right and left distinctions are obsolete and misleading, asking the crucial questions is essential.

 

Foreclosure Isn't the End, Know What Questions to Ask

Author: Christopher M Lee

It's becoming an increasingly ordinary scene: next-door neighbors in Des Moines pack up nearly identical belongings into already overstuffed rental trucks and SUVS. The bank foreclosed on both families today, the legal notices to vacate the pair of homes delivered within half an hour each other.  In 2008, both families moved into identical split-level, three-bed, two-and-a-half baths in developer-planned community. Same Bank. Same Mortgage. From a distance, the only discernible variation is that the Peters have a daughter instead of a son.

A recent survey conducted by Neighborhood Works America—a research and survey arm of the FDIC—every three months, 250,000 families will enter into foreclosure. From a sampling of emotional well-being, 38% of those families identified as scared, 35% depressed while 8% were just plain angry.

As many of the surveyed families know well, it's the economy.

While the market remains in a state of prolonged uncertainty, millions of families are treading water, taking on multiple jobs just to make the mortgage payment. Few hold out hope for higher ground or improved economic traction. Most, however, are willing to painfully admit that anything unexpected along the way, like unforeseen medical expenses, could put them on the street.

What many families are apt to forget amidst long hours, intense emotional strain and just plain grief is that banks want consumers, not their houses. Foreclosure isn't good business for anybody. Fortunately, for many people who fall in the median-income range, forbearance is an excellent option.

What is forbearance?

When a borrower falls behind or cannot make payments on a loan, the bank agrees to not execute their legal right to foreclose on the delinquent borrower's house until the borrower is capable of making his of her loan payments. This is on the condition that the borrower has a financial plan to get out of delinquency.

There is no limit on how long a delinquent borrower can be in forbearance. However, it is extraordinarily uncommon for a bank to extend a forbearance agreement beyond 12 months. That said, the forbearance agreement is designed to help those people with temporary financial problems, which expect to be financially solvent and able to pay as they originally agreed within a 12-month window. It is not an option for people with an adjustable rate mortgage or people expecting to be financially insolvent for longer than 12 months.

What do I do if I have an adjustable rate mortgage or am under onerous debt already?

For those borrowers who cannot enter into forbearance because of an ARM loan or who have considerable debt outside of your home loan, the next best option is Mortgage Loan Modification. There are several types of MLM structures for those people expecting prolonged delinquency on their loan payments. Some of the more common are as follows:

-Reduction on the principle of the loan

-Reduction on the interest rate applied to the principal amount and lengthening the term of the loan

-Reduce or eliminate penalties for defaulted payments as one condition of the modification

If you are facing foreclosure, it's a good idea first to do some research. It's smart to ask a lot of questions—it's still your home. If you are still confused or feel your situation may be exceptional, you may want to consider seeking legal advice. Your bank doesn't want to foreclose on you. Once you have decided it is time to take an action, enter negotiations with your bank in the good faith that you and your bank can reach a mutually beneficial Mortgage Loan Modification agreement.

For more information visit: http://leefinancialhelp.com

Article Source: http://www.articlesbase.com/mortgage-articles/foreclosure-isnt-the-end-know-what-questions-to-ask-5055288.html

About the Author

Christopher Lee, of Lee Law Firm, understands that financial hardships can affect honest, hard-working people. His early experience growing up in a very blue collar family in a rural area of Indiana, made a significant impression on his business philosophy today.  As a child, he watched his family struggle as money didn't come easy and his parent work hard to provide for their family. As a foreclosure attorney in Dallas, Tx his practice has given him the opportunity to help many people keep their homes. For more information visit: http://leefinancialhelp.com

National Debt Ceiling Debate has raised the ire of everyone, who is to blame?

Author: Christopher M Lee

An inconvenient truth of many of the Nation's perpetual debt woes is this: America is made up of Americans. It is a plurality. If politicians are accountable for anything, it is making bad decisions with taxpayer money. Amidst the finger pointing on Capitol Hill, the President and congressmen are avoiding the not so insignificant reality that the national debt ceiling crisis is the result of fiscal irresponsibility by the many, not just a few elites.

Private and publicly held debt comparable

A quick comparison of privately and publicly held debt is alarming. Private citizens hold 13.4 trillion in debt—that's revolving debt, mortgages, loans, etc. The US Government owes 13.8 trillion. What is more, the American electorate was of the mindset "let creditors worry about you" before the financial crisis, nearly doubling its overall debt from 7 trillion dollars to 14 trillion, 100%, in the half decade leading up to financial collapse.

Government debt climbed from 6 billion dollars 9 billion dollars. This is 44% less than consumer debt over the same time period.

Government debt to cover deep, systemic slew of private crises

Let it not be forgotten the US Government had to take on substantial new debt with TARP, the Troubled Asset Relief Program, and continues to underwrite a floundering mortgage market. It is simply the case that private institutions, like Bear Stearns, once a bastion of American financial strength, took huge bets with large sums of money and lost. Private individuals, especially those who jumped on subprime mortgage opportunities, took the same gamble with their futures and the futures of their families.

Few pundits or politicians, let alone the average taxpayer, are so keen to point out that the federal government has done a decent job managing the national debt in recent years. Consider the sophisticated demands of its citizenry: no new taxes, the maintenance of America's strategic position in the world, better schools, better pay, nationalized health insurance. This is just to name a few.

Private and public interests separated rhetorically

It has been a political convenience to blame President Obama's Healthcare, "Obamacare," for the spike in government spending in the last half decade. Policy wonks and independent think tanks have concluded nationalized healthcare will drive health care costs down over the coming decades. This is exactly the kind of long-term financial planning that will keep America out of the ditch in the years to come.

Borrowers and banks have sobered up in the last couple years. They haven't had a choice. It is no small accomplishment that the American government has managed to pay for two theaters of war, subsidize debt-ridden banks and individuals, and prop up social welfare programs. More than that, the US government has loaned its deep talent pool to the private sector. There it has worked to improve loan modification and pressure banks during credit car negotiations. It is something of a novel idea, but the US government is a composite of its people.

For more information visit: http://leefinancialhelp.com

Article Source: http://www.articlesbase.com/personal-finance-articles/national-debt-ceiling-debate-has-raised-the-ire-of-everyone-who-is-to-blame-5085198.html

About the Author

Christopher understands that financial hardships can affect honest, hard-working people. Growing up in a very blue collar family and rural area of Indiana , money didn't always come easy for his parents. The struggles his family faced in his childhood made a significant impression on his business philosophy today. As a Fort Worth foreclosure attorney his practice has given him the opportunity to directly impact the lives of many people. For more information visit: http://leefinancialhelp.com