Isn't this the greatest time of the year? The holidays are around the corner, decorations are on houses every where, and people are full of joy. However, this is also the most expensive time of the year. Your making your list, checking it twice, and trying to figure a way to pay for all these gifts. Here are a few ideas on how to ensure that you still won't be trying to pay off your credit cards in July.
Make a Budget: Before you make a list of all the people that you will be buying gifts for this year decide how much money you can afford to spend on gifts. Once you know how much you can spend for the gifts, make you list and assign a MAX dollar amount you can spend on each person.
It's the THOUGHT THAT COUNTS: It's easy to forget what this time of the year represents, it's not about buying expensive gifts to show those we love that we care about them. There are a lot of inexpensive gift ideas that will show the people close to you that you love them. Baking holiday cookies, a picture frame with a picture of you and the person you are giving the gift to, other crafts (there is a lot you can do even if you failed art and crafts in elementary school, like I did. Search the web and there are many sites that will help you with ideas and how to do it. Here is a good site to start your search http://www.thriftyfun.com/). Your kids artwork is also a great gift for grand parents. Frame the artwork with an inexpensive frame and add a quick poem or scripture or picture to the frame.
Give your time: Ahh, we all made coupon books for our parents or brothers and sisters when we were children. Coupon books are great way to show people that you care about them and they allow you to spend more time with people you love throughout the year.
Search for Bargains: For those people on your list that you HAVE to buy some thing for, look online. The Internet is the best tool you can use for holiday gifts, you can shop thousand of stores looking for the best deals from the comfort of your own home.
Good luck with your budget, and Happy Holidays!!!
Prosperity Financial, LLC
http://www.myprosperityfinancial.com/
Lafayette, CO
Managing your Mortgage
Purchase - Refinance - Cash-Out - Home Equity - Great Rates
Thursday, November 29, 2007
Monday, November 26, 2007
What's in your Wallet?
First of all, Happy Thanksgiving to all, I hope every one had a great Thanksgiving.
One of the most valuable assets we have is our credit, however, most of us don't know much about it and what we can do to improve our credit. There are many factors that play a role in how the credit bureaus determine your credit score. Most of know about that timely or late payments affect our credit we don't much about the other factors. Here is a little information on 3 major areas that have an impact on your credit.
Amount Owed: Next to your payment history the amount owed reporting on your credit has the biggest impact on your score and can be the most confusing. Having a lot of credit cards is not necessarily a bad thing, however, having a lot of credit cards that are maxed out is. Credit cards actually help your credit, but you want to try to keep your balances below 30% of the credit limit (If you have a $1,000 credit limit, keep your balance below $300). This is one reason why I don't recommend having a Capital One card and if you do have a Capital One card check your credit report frequently. Capital One is known to report your last month's balance as this month's credit limit (if you have a credit limit of $5,000 with Capital One and your balance last month was $2,000 and you paid $500, next month they will report your limit as $2,000 month with a balance of $1,500, even though your real credit limit it $5,000), which can have severe impact on your credit score. Also, try to stay away from department store cards and other high interest rate cards, they will not help improve your score. It is also important ot know when your credit card company reports to the credit bureaus. I know a lot people use their credit cards and pay off the balance every month. However, if your credit card company reports before you pay off the balance then it will appear to bureaus that your cards are maxed out or have a high balance every month. Typically, you want to have a few credit cards with small or no balances, auto loan, and mortgage (if you have one), is a good mix.
Length of Credit History: The longer your credit history is the better. That means if you have a credit card that has been opened for 20 years but you don't use it and were thinking of canceling it, DON'T. If you cancel the card and close your account your credit score will drop. This also explains, why some times a person's score when drop when they pay off a collection account that has been opened for years (I know it doesn't make sense).
New Credit: Ahhh, I hear this all the time, I don't want my credit pulled because my score is going to drop. While, credit inquiries can have a slight and very temporary impact on you score, they typically don't affect your score. However, when you obtain new credit (credit card, auto, installment loan) your score will be drop for a short time (3-6 months). This is caused because the credit bureaus are unsure of your ability to make the new payment along with your other payments. Once you have proven that you can continue to make timely payments your credit score will rebound and in most cases will be higher than it was before.
If you have any questions regarding your credit or want to know how you can improve your score up to 100 points with in 3 months please feel free to go visit us online at, http://www.myprosperityfinancial.com/ or call us at, 303.666.6550.
Prosperity Financial
Mortgage Manager
Lafayette, CO
Purchase - Refinance - Cash-Out - Home Equity - Great Rates
The best choice for a Mortgage Manager in Colorado
One of the most valuable assets we have is our credit, however, most of us don't know much about it and what we can do to improve our credit. There are many factors that play a role in how the credit bureaus determine your credit score. Most of know about that timely or late payments affect our credit we don't much about the other factors. Here is a little information on 3 major areas that have an impact on your credit.
Amount Owed: Next to your payment history the amount owed reporting on your credit has the biggest impact on your score and can be the most confusing. Having a lot of credit cards is not necessarily a bad thing, however, having a lot of credit cards that are maxed out is. Credit cards actually help your credit, but you want to try to keep your balances below 30% of the credit limit (If you have a $1,000 credit limit, keep your balance below $300). This is one reason why I don't recommend having a Capital One card and if you do have a Capital One card check your credit report frequently. Capital One is known to report your last month's balance as this month's credit limit (if you have a credit limit of $5,000 with Capital One and your balance last month was $2,000 and you paid $500, next month they will report your limit as $2,000 month with a balance of $1,500, even though your real credit limit it $5,000), which can have severe impact on your credit score. Also, try to stay away from department store cards and other high interest rate cards, they will not help improve your score. It is also important ot know when your credit card company reports to the credit bureaus. I know a lot people use their credit cards and pay off the balance every month. However, if your credit card company reports before you pay off the balance then it will appear to bureaus that your cards are maxed out or have a high balance every month. Typically, you want to have a few credit cards with small or no balances, auto loan, and mortgage (if you have one), is a good mix.
Length of Credit History: The longer your credit history is the better. That means if you have a credit card that has been opened for 20 years but you don't use it and were thinking of canceling it, DON'T. If you cancel the card and close your account your credit score will drop. This also explains, why some times a person's score when drop when they pay off a collection account that has been opened for years (I know it doesn't make sense).
New Credit: Ahhh, I hear this all the time, I don't want my credit pulled because my score is going to drop. While, credit inquiries can have a slight and very temporary impact on you score, they typically don't affect your score. However, when you obtain new credit (credit card, auto, installment loan) your score will be drop for a short time (3-6 months). This is caused because the credit bureaus are unsure of your ability to make the new payment along with your other payments. Once you have proven that you can continue to make timely payments your credit score will rebound and in most cases will be higher than it was before.
If you have any questions regarding your credit or want to know how you can improve your score up to 100 points with in 3 months please feel free to go visit us online at, http://www.myprosperityfinancial.com/ or call us at, 303.666.6550.
Prosperity Financial
Mortgage Manager
Lafayette, CO
Purchase - Refinance - Cash-Out - Home Equity - Great Rates
The best choice for a Mortgage Manager in Colorado
Monday, November 19, 2007
Purchasing a House with No Money Down
People all the time tell me they are waiting to purchase a house until they can save enough money for a down payment. My first question is always, why? I typically will receive 1 of 2 responses, "Don't I have to have some type of down payment" or "I want to get a good interest rate." This probably the biggest myth in the real estate industry.
There are dozens of loan programs/mortgages that are available that don't require any down payment and they all offer great interest rates. In fact, purchasing a house usually will take less money out of your pocket than renting a home. When you rent a house you have to make a security deposit and pay the 1st month rent (some time the last month too), however, when you purchase a house the only money that is out of your pocket is the earnest money (typically $500-$1,000, and you usually receive this back when you close).
Any time your mortgage finances over 80% LTV (if you purchase a house for $100,000 and you mortgage is for $90,000 you are financing 90% loan to value (LTV)), you will have to pay monthly private mortgage insurance (PMI). PMI helps reduce the risk for lender by insuring the lender against defaults, therefore, allowing the lender to offer you a better interest rate. While, a mortgage with PMI will add to you monthly payment, it is tax deductible if your household income is less than $100,000 and many of the no down payment programs/mortgages offer reduce PMI rates.
Another option for 100% financing is to obtain a first and second mortgage, often called an 80/20 (your 1st mortgage finances 80% of the purchase price and the 2nd finances 20%). The advantage of an 80/20 is that you can avoid paying PMI and therefore, at times can offer a lower payment.
For more free information on mortgages or real estate please visit us at, http://www.myprosperityfinancial.com/ or you can call me or one of our mortgage professionals at 303.666.6550.
Prosperity Financial, LLC
Lafayette, CO 80026
Refinance - Purchase - Cash Out - Home Equity - Great Rates
There are dozens of loan programs/mortgages that are available that don't require any down payment and they all offer great interest rates. In fact, purchasing a house usually will take less money out of your pocket than renting a home. When you rent a house you have to make a security deposit and pay the 1st month rent (some time the last month too), however, when you purchase a house the only money that is out of your pocket is the earnest money (typically $500-$1,000, and you usually receive this back when you close).
Any time your mortgage finances over 80% LTV (if you purchase a house for $100,000 and you mortgage is for $90,000 you are financing 90% loan to value (LTV)), you will have to pay monthly private mortgage insurance (PMI). PMI helps reduce the risk for lender by insuring the lender against defaults, therefore, allowing the lender to offer you a better interest rate. While, a mortgage with PMI will add to you monthly payment, it is tax deductible if your household income is less than $100,000 and many of the no down payment programs/mortgages offer reduce PMI rates.
Another option for 100% financing is to obtain a first and second mortgage, often called an 80/20 (your 1st mortgage finances 80% of the purchase price and the 2nd finances 20%). The advantage of an 80/20 is that you can avoid paying PMI and therefore, at times can offer a lower payment.
For more free information on mortgages or real estate please visit us at, http://www.myprosperityfinancial.com/ or you can call me or one of our mortgage professionals at 303.666.6550.
Prosperity Financial, LLC
Lafayette, CO 80026
Refinance - Purchase - Cash Out - Home Equity - Great Rates
Thursday, November 15, 2007
Plan Right and Never Worry about Foreclosure
The topic of the year in the mortgage/real estate industry has been the spike in foreclosures over the last 9 months. We have reached foreclosure rates that have not been seen in over 20 years and has added more stress on the already weak real estate market. While the media has blame bad loans, wall street, the government, what can YOU do to ensure that you will never have to worry about foreclosure?
Avoiding foreclosure begins before you purchase your house. Purchasing a house is typically the single most expensive transaction most of us will make in our life time. However, most of take more time planning our weekend activities than the purchase of our house. Failing to plan is a plan for failure. There are a lot of details that must be considered and discussed before you start shopping for houses.
1. Plan Wisely
How much can you afford now? How much can you afford in 5 years? 10 years? How long will you live in this house? Are you expecting your family to grown in the next 5 years? A majority of us only think about today and worry about tomorrow when it comes. However, this is a recipe for foreclosure. Interest only (IO) loans and adjustable rate mortgages (ARM's) are not at fault for the problem that we face now. The lack of planning is the problem. While, both loans carry additional risk they both offer great benefits for those borrowers who planned wisely. Before talking to any one (Realtor or Mortgage Professional) develop a personal financial plan for the next 5-10 years. What debts do you have now? What debts will have in 5 years? Consider; growing family, new car, saving 5%-10% of your income, emergencies. I always suggest that you over estimate your debts and under estimate your income (raises, promotions). Once you have considered all factors you can now determine how much you can afford monthly on your new house.
2. Talk with a Mortgage Professional
There are thousands of mortgage professionals available to help you obtain financing for your new house, talk to a FEW of them. It is important that you like and trust the person that is helping you find a mortgage. Make sure the person that you choose will help you MANAGE your mortgage (they will help and assist even after the loan closes). This is important because you want some one that will take care of you after the loan closes. If the rates drop and you can save a few hundred dollars a month, will this person call you? Will they remind you when you rate is going to adjust? Will they help you manage your credit after the loan closes? They should be willing and able to sit down with you and discuss all the options that are available. A good mortgage professional will tell you all the advantages and disadvantages of the different loans your considering. You want to make sure they are willing to walk you through the entire process. Follow your gut feeling, if you are uneasy or don't feel right, find some one else to work with.
3. House Hunting
MAKE SURE YOU STICK TO YOU BUDGET!!! If you can afford a $250,000 house, purchase a house that is $250,000 or LESS. This is a buyer's market and there are thousands of houses available there is no reason to purchase a house that is not in your budget. Take your time and view as many properties as you can before you decide on a house. When comparing houses find out what property taxes, monthly HOA dues, and insurance will cost. Theses additional expenses can vary a lot between houses and will help you stay in budget.
4. Managing Your Finances
You would think they would teach personal finance in high school, since it's a subject that every American will use every day for the rest of their life. Don't use your credit cards if you can't pay it off at the end of the month. Plan on saving 10% of your income every month for retirement or a rainy day. A majority of foreclosures are caused by life time events (death in the family, illness, injury, divorce, loss of job), not because of bad loans. Plan for the rainy day and if you are lucky enough to avoid them you will enjoy retirement that much more.
For more helpful mortgage or real estate information visit us at, http://www.myprosperityfinancial.com/ or call 303.666.6550
Prosperity Financial, LLC
Lafayette, CO
Refinance - Purchase - Cash Out- Home Equity - Great Rates
Avoiding foreclosure begins before you purchase your house. Purchasing a house is typically the single most expensive transaction most of us will make in our life time. However, most of take more time planning our weekend activities than the purchase of our house. Failing to plan is a plan for failure. There are a lot of details that must be considered and discussed before you start shopping for houses.
1. Plan Wisely
How much can you afford now? How much can you afford in 5 years? 10 years? How long will you live in this house? Are you expecting your family to grown in the next 5 years? A majority of us only think about today and worry about tomorrow when it comes. However, this is a recipe for foreclosure. Interest only (IO) loans and adjustable rate mortgages (ARM's) are not at fault for the problem that we face now. The lack of planning is the problem. While, both loans carry additional risk they both offer great benefits for those borrowers who planned wisely. Before talking to any one (Realtor or Mortgage Professional) develop a personal financial plan for the next 5-10 years. What debts do you have now? What debts will have in 5 years? Consider; growing family, new car, saving 5%-10% of your income, emergencies. I always suggest that you over estimate your debts and under estimate your income (raises, promotions). Once you have considered all factors you can now determine how much you can afford monthly on your new house.
2. Talk with a Mortgage Professional
There are thousands of mortgage professionals available to help you obtain financing for your new house, talk to a FEW of them. It is important that you like and trust the person that is helping you find a mortgage. Make sure the person that you choose will help you MANAGE your mortgage (they will help and assist even after the loan closes). This is important because you want some one that will take care of you after the loan closes. If the rates drop and you can save a few hundred dollars a month, will this person call you? Will they remind you when you rate is going to adjust? Will they help you manage your credit after the loan closes? They should be willing and able to sit down with you and discuss all the options that are available. A good mortgage professional will tell you all the advantages and disadvantages of the different loans your considering. You want to make sure they are willing to walk you through the entire process. Follow your gut feeling, if you are uneasy or don't feel right, find some one else to work with.
3. House Hunting
MAKE SURE YOU STICK TO YOU BUDGET!!! If you can afford a $250,000 house, purchase a house that is $250,000 or LESS. This is a buyer's market and there are thousands of houses available there is no reason to purchase a house that is not in your budget. Take your time and view as many properties as you can before you decide on a house. When comparing houses find out what property taxes, monthly HOA dues, and insurance will cost. Theses additional expenses can vary a lot between houses and will help you stay in budget.
4. Managing Your Finances
You would think they would teach personal finance in high school, since it's a subject that every American will use every day for the rest of their life. Don't use your credit cards if you can't pay it off at the end of the month. Plan on saving 10% of your income every month for retirement or a rainy day. A majority of foreclosures are caused by life time events (death in the family, illness, injury, divorce, loss of job), not because of bad loans. Plan for the rainy day and if you are lucky enough to avoid them you will enjoy retirement that much more.
For more helpful mortgage or real estate information visit us at, http://www.myprosperityfinancial.com/ or call 303.666.6550
Prosperity Financial, LLC
Lafayette, CO
Refinance - Purchase - Cash Out- Home Equity - Great Rates
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