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Please forward
this information to your friends and family
members. You will be doing them a service
and helping me to serve more great clients.
Of course, your comments and feedback are valuable
and appreciated.
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New
Credits Scoring Method
A
new way of scoring credit worthiness is in our near
future. Most of us have probably paid the most attention
to making sure our bills are paid on time, which by
definition, means that the payment is received within
30 days of the due date. That will continue to be important,
but here are some tips about other lesser known criteria
that you need to consider.
1. Avoid opening new accounts unnecessarily, such as
to receive special one-time discounts or to move credit
card balances from an existing account into a new one
offering a lower teaser rate. Any account with less
than 12 months payment history will lower your score.
2. Monitor your credit report for unexpected derogatory
entries at least twice a year. Many good borrowers are
surprised to find medical collections on their credit
report that they had never been billed for at all. Medical
providers that do not receive 100% compensation from
your insurance company, will frequently turn the remaining
balance over to collections without ever contacting
you at all.
3. High credit card balances in relationship to the
credit limit, is the biggest detractor on most credit
reports that I observe. If I owe $2,700 on a credit
card whose credit limit is $3,000, that will lower my
score even though all the payments have been timely.
I suggest that you should strive to have all of your
individual balances less than 50% of the limit for each
account. In some cases it may be expedient to call your
credit card holder and ask them to raise your credit
limit, though I ask that you use prudent judgment to
avoid using the higher limit to accumulate even more
debt.
4. Be careful about closing credit card accounts that
you are not using. We used to suggest closing such accounts
to reduce the risk of fraudulent usage. Under current
federal law, your risk is minimal, a maximum of $50
and for most banks it is zero if reported promptly.
Now we recommend keeping those accounts open because
when you close them, your score will go down a little
unless the account has been open less than 12 months
anyway.
Keeping My Promise!
For years I have pledged
to my clients that in most cases, even though they
have locked their loan rate, should rates drop during
the processing period prior to closing, I would get
them the lower rate at no additional cost to them.
That recently happened to three
of my clients. On Wednesday, January 23rd, rates took
a big dip in the morning. My clients reaped the windfall
of having their rate drop from 5.5% to 5.125% without
them even knowing it until the next day when I called
to give them with the good news. Interestingly, that
same afternoon rates were subjected to three rate increases,
so that by the end of the day, rates had risen above
the 5.5% they had been the previous day. Please appreciate
the fact that if I waited to see what further movement
may occur or until I was able to get my clients approval
over the phone, the opportunity would have passed us
by. I opted to move decisively and acted in my clients
best interest without delay! I love it when a plan comes
together.
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Welcome
to my February Newsletter
My monthly newsletter covers different topics each
month to help increase your knowledge of the mortgage
industry and recent industry happenings. Alos,
I try to provide current information that will
help you to strengthen your family finances. Feel
free to pass this newsletter along to any friends
and family members who might find it useful and
contact me with any questions you may have.
Thank You,
Bernie Saul
Spotlight
A Welcomed Tax Season
A look at how the upcoming tax season will
be offering some economic relief.
With the housing market going through a major
reset and talk of a possible recession, the government
is attempting to stimulate our economy by offering
an increased loan limit and rebate plan for tax
payers and homeowners. This is not only welcome
news for potential home buyers, but also for current
homeowners looking to refinance. Below are a few
government proposed strategies designed to boost
the housing market and your wallet.
The Mortgage Forgiveness Debt Relief Act
As Benjamin Franklin once said, “In this world
nothing is certain but death and taxes.” During
this tax season, this statement rings true; taxes
prevail as the housing market continues to fluctuate
and homes drop in value throughout the nation.
In order to reduce financial stress, the government
has introduced the Mortgage Forgiveness Debt Relief
Act.
Although the Act doesn't cut taxes altogether,
it does help American families secure lower mortgage
payments without facing higher taxes. Before the
Mortgage Forgiveness Debt Relief Act was enforced,
homeowners were losing money on both their homes
and on taxes. Though their lender would forgive
a portion of their mortgage, the tax code treated
the amount forgiven as taxable income. The Mortgage
Forgiveness Debt Relief Act gave homeowners the
freedom to work with their lenders, refinance
their mortgage and pay no taxes on any debt forgiveness
they receive from now until the year 2010. Call
Equity Link Mortgage Inc. today at Office: 303.933.1466
to learn more about the Mortgage Forgiveness Debt
Relief Act and your mortgage options.
Tax Rebate Program
In order to jump start the economy, the government
is issuing rebates to more than 116 million families
throughout the nation. This highly anticipated
rebate will provide a much needed boost to everyone's
bank account.
The minimum rebate issued to those eligible is
likely to be anywhere from $300 to $600 for individuals,
with an additional $300 for each child. The rebate
limit for families is expected to be around $1,200,
more than enough to make a significant dent on
any gas and/or grocery bills.
Raising the Roof on Home Loan Limits
Congress is updating the National Housing Act
in their efforts to combat the housing market
slump. The proposed revisions will raise the limit
on Federal Housing Administration (FHA) loans
from the current loan limit of $417,000 to a limit
as high as $730,000. The increase of the loan
limit will not only improve the availability of
safe federally insured loans, but will make home
ownership more affordable and attainable.
Those looking to buy property are not the only
ones reaping the benefits of this change. Homeowners
who hold a sub-prime mortgage are also eligible
to refinance into federally insured loans. This
enables them to keep their homes and avoid the
threat of foreclosure. Call Equity Link Mortgage
Inc. at: 303.933.1466 to discuss any new mortgage
options that you may be eligible for.
Keeping You Informed...
As a borrower, it is important to watch the market
and stay in touch with your mortgage professional.
I am dedicated to keeping you informed of
the latest market trends and mortgage options.
Take advantage of my knowledge combined with 14
years of experience to improve your home equity
and prepare for the opportunities available on
the upside of any market trends. Visit Equity
Link Mortgage Inc. online at http://equitylinkmortgage.net
or call me today at: 303.933.1466, to learn
more about the most cost-effective loan options
that will fit your current situation and help
you attain your financial goals.
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