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The Government Is Itching To Reach Borrowers Who Could Be Saving Money Every Month 

March 14, 2025

Manila - Homeowners are rushing to websites like FHA Rate Guide to find out if they qualify for a plan that offers them shockingly low interest rates. Financial institutions like The Federal Housing Finance Agency are encouraging homeowners to take advantage of the federal Home Affordable Refinance Program, known as HARP ¹, which can provide pretty substantial savings for families .

There has never been a better time to refinance your home. That's because HARP allows Americans to refinance their homes at shockingly low rates, and reduce their payments by an average of $2,292 a year.² Time is running out for homeowners who can still benefit. The program is set to expire in 2015, but the good news is that if you qualify you are in!

A middle-class stimulus

The Home Affordable Refinance Program  benefits the middle class. The smallest changes can make the biggest difference. Watch your monthly payment decrease by getting a lower interest rate with HARP. If your mortgage is $625,500 or less (unless you live in a high-cost area; then the loan limits may be higher), you most likely qualify.

Turned down before? Now's the time to try again.
  1. You can shop several lenders , not just your current mortgage holder
  2. You can have a loan-to-value (LTV) ratio greater than 80%

 You need to act fast in order to refinance your house at these current low refinance rates as the HARP incentive expires.³ Could you use the extra savings?

  • The average monthly savings for most eligible Americans is $191.²   Can you use an extra $191 a month?
  • Many homeowners not only save every month, but depending on their current rates, they can also shorten their term.

This is why it's a no-brainer - you may be be able to lower your payment, possibly shorten your term, and can possibly get cash. This is how powerful that little word called "interest" is. The middle class never sees "breaks" like this. So this is your chance to get "in".

Mortgage rates have decreased, but rates may not stay low if the government changes its economic policy. Act now  while rates are still low and avoid a potential rate hike.

How do I get low rates?

The trick to finding a low rate is to utilize free websites that will help compare available mortgage rates for consumers, allowing them to choose the right one. We suggest using free resources like FHA Rate Guide , one of the country's largest refinance comparison websites. There's no obligation to homeowners for a quote, and FHARateGuide offers easy and quick comparisons. It takes a couple of minutes, and the service is 100% free to receive lender rates. You have nothing to lose, except for your money problems!

Get Quotes >>

Debt Consolidation 101

All About Reducing Your Debt Load

March 14, 2025

Manila - In today's society, debt is a part of everyday life. However, there is a massive difference between necessary debt (mortgage, student loans) and destructive debt that ties you into paying back the same loan or credit card for years after you first needed the money. Here are 5 steps to beating your debt.

Any proper discussion of methods for reducing debt load should begin with the following disclaimer:

Dealing with excessive debt is, in several ways, analogous to losing weight. You did not acquire all that weight/debt quickly, and it may take you even longer to lose it — and without changes in eating/spending habits, the weight/debt will come back. Any debt consolidation measure must contain some form of credit counseling. At the very least, you should understand what habits got your personal or business finances into this predicament in the first place, and have a strategy to change them.

Three terms with debt reduction are often used interchangeably, but should not be.

Debt Consolidation: This means consolidating multiple debts into one debt stream. Debt consolidation does not reduce your debt — it just simplifies payment by having only one creditor. While this may help you keep track of payments, the main purpose in consolidation is moving higher interest rate debt into a single payment with a lower interest rate by one of these methods:

Loans - Consolidation loans are usually secured loans against assets (such as a home equity loan). If your credit rating allows for an unsecured loan, it is a much better situation, as your assets will not be put at risk. Once you close the low-interest loan, high-interest loans like credit cards can be paid right away.

Balance Transfers - Opening a new credit card account with favorable terms (usually a short-term promotional rate) and paying off the old cards and other debt with the new card

Do not be fooled by the sudden appearance of a much larger credit capacity. Avoid using this credit if possible, and use it sparingly if you must. In addition, when extending payment periods, consider the time value of money as well as the interest rates.

Debt Management: Debt management companies prioritize and allocate your debt. Instead of paying off the previous creditors and replacing them with a single debt source (loan or credit card), you are keeping the same creditors, but having one person manage the payments for you with money you pay them from your account. It is a form of debt consolidation — but only from your viewpoint.

Debt management companies can either be for profit or non-profit, but they are not free. Even non-profits have overhead expenses. Often they will attempt to negotiate better interest rates or lower finance charges with creditors, using their relative stability as leverage.

It can take three to five years to complete a debt management program, and possibly longer depending on your debt-to-income ratio. Credit effects are minimized by successfully completing the program.

Debt Settlement: Debt settlement is designed to reduce your overall payment amount. Debt settlement companies usually advise you to stop making payments to your creditors, and deposit money in a separate account for a future settlement.

The theory is that creditors will eventually write off your debt as bad debt and take whatever they can get through the settlement company. Generally they will, but there is no guarantee that the settlement company can settle with every company. This could leave you with unpaid debt and significant charges.

Usually, this is a quicker method of getting out of debt. However, your credit rating will be damaged for years, and may never return to higher levels. Since you have made a choice not to pay your bills in full, potential creditors may decide you are an unacceptable risk.

All debt reduction methods have associated fees and/or closing costs, and some have tax ramifications with possible deductions or penalties, so consider this when doing cost-benefit calculations. Be aware that there are many scammers who try to take advantage of people in dire straits; dealing with them, you could end up with even more debt and more headaches.

 

Top 6 Car Insurance Myths

What You Don't Know About Auto Insurance Can Hurt You!

March 14, 2025

Manila - Many myths are related to how insurance rates are set – assumptions that sports cars, red cars, etc. cost more to insure than other vehicles. There are certain makes and models that cost a little more to insure based on risk factors and repair costs – and the costlier your car is to replace if totaled, the higher your premiums will be -- but typically, your driving behavior has more to do with your rates than the car you drive.

These six myths have more to do with mishaps and your related coverage – or misunderstanding of it.

Thieves Prefer New Cars – Cars are often stolen to be dismantled and sold as untraceable parts, and the demand is going to be higher for parts for used cars. There are more of them on the road, and more that will need repair. Moreover, advances in theft control on newer cars make older cars easier to steal. Popular older models such as Honda Accords and Toyota Camrys often top the list.

Remember that you need comprehensive coverage to be insured against theft; liability alone is not sufficient.

Your Car Will Be Paid Off If It Is Totaled – The amount you are paid for a totaled vehicle depends only on its cash value at the time of the accident. It is completely independent on how much you owe. Depreciation is significant in the first years of ownership, so during that period it is likely you will owe more than you will receive in cash value. You can buy "gap insurance" to make up the difference if you choose.

If Your Car is Stolen/Damaged, Insurance Pays for A Rental – It may, it may not – but rentals are not automatically included. Typically, rental coverage is added separately to your premium and provides a rental car up to certain time or dollar limits.

Business Use of Your Personal Car is Covered – You need a specific policy covering business use of your personal vehicle, or some addition to your personal auto policy spelling out coverage, conditions and limitations for business use. Business use of your personal vehicle introduces greater risks and higher liability, in part because you are driving additional miles each month.

New Cars Are Automatically Covered Under Existing Policies – Purchase of a new car means new risks, different repair costs, and a host of new factors; therefore a new policy is required. Check with your insurer to find out how long you have to notify them of a new car purchase. Otherwise, you may be driving without coverage while thinking everything is just fine. 

You Have a 30-Day Grace Period If You Are Late Paying Your Bill – There will be some form of notification period before cancellation for lack of payment, but requirements vary by state. The period could be as short as ten days. Do not risk losing your coverage through delaying your payment.

There are plenty of other car insurance myths, some arguably as important as these to debunk. The real point is that you shouldn't accept any car insurance myths at all.

Take time to educate yourself about your auto insurance policy, and if there is something you don't understand, ask your agent or insurance company. There are plenty of online sources that can also help you. Be educated and well insured, and enjoy the peace of mind that comes from not having to worry about your auto insurance coverage.

5 Things You Don't Know About Your Credit Score

When It Comes to Credit, What You Don't Know Can Hurt You

March 14, 2025

Manila - Your credit score is very important to you, whether you pay attention to it or not. Understanding and monitoring it can help you prevent or minimize financial problems. Get your free score.

Why do I need to check my Credit Score?

A good credit score is your passport to competitive interest rates for
mortgages, cars and credit card offers, as well as better job offers, lower
insurance premiums and more. 

Will all credit scores be the same, or close?

Not necessarily. Your credit score from each bureau can vary by 100 points or more. And that can be the difference between being approved or denied for the loan you want. You never know which score a lender is going to check.

Should I expect to find errors in my credit profile?

It's likely, according to financial experts and analysts. Your credit report can include errors and inaccuracies that can lower your credit score. As a member of Smart Credit® , you'll have access to your credit report so you can be sure that your credit information is correct.

You need to be aware of the following five facts about credit scores:

  1. There is No Single "True" Credit Score - Each agency and lender that is looking at your credit looks at the same factors, but weighs them differently. In addition, the three primary credit agencies (Equifax, Experian and TransUnion) do not all receive the same information, nor do they necessarily seek all the same information. As a result, you are likely to have different scores from each agency.
  2. The FICO credit score (by Fair Isaac Corporation) is the most widely quoted and used, but it is not the only scale. With the help of the three credit bureaus, VantageScore was introduced back in 2006 to compete with FICO. Before investigating a loan with a potential lender, find out which system they use, and check your score to make sure that you won't get any unpleasant surprises.
  3. Credit Scores Affect More Than Loans - A bad credit score can obviously hurt your ability to get a loan for any reason, and if you do get a loan, your interest rates will be higher.  Check your score now.
  4. However, you may not realize that bad credit scores affect many other areas where you are being evaluated for risk, such as insurance rates. Landlords and utility companies may require a larger security deposit. Your ability to get a job or even professional licensing within your field could also be affected.
  5. Just paying off the balance at the end of the month is not sufficient. Balances are determined as averages. If you max out your card but pay it off every month regularly with no carryover balance, your credit score will still take a large hit.
  6. Condense Your Credit Shopping - Each inquiry for credit, such as shopping for mortgage rates with lenders, results in a check on your credit. Too many checks on your credit over a prolonged time give the impression that you are trying to extend your credit, and thus you are a higher risk.
  7. If you are mortgage or credit shopping, do it within a relatively short time. Similar credit checks that are closely grouped together are generally considered one inquiry.
  8. Mistakes Are Your Responsibility - The credit agencies compile and analyze information; they do not verify accuracy. Identity theft, multiple entries (such as collection agencies), clerical errors, and mangled information can be harming your score without your knowledge. Applying for credit under different versions of your name (Bob vs. Bobby vs. Robert, maiden vs. married) can easily cause muddled information. It is up to you to check and correct errors.

Did you "score" well on credit score knowledge? If not,  educate yourself on credit scores, and check your credit score and information to save money and avoid potential problems.