Gunning Daily News
October 24, 2011 5:36 pm
Between regular bills and unexpected expenses—like that blown tire or the leak in the water heater—it sometimes seems that saving money is as impossible as pie in the sky. But while none of the savings strategies listed here will be new to you, say the money mavens at Walletwatcher.com, the secret to stashing needed cash is to make these old savings standards work for you in new ways.
• Paycheck deductions – You’ve heard it 100 times, but it’s true: having money deducted from your paycheck, or diverted to savings from direct deposits to your checking account, is the best way to save without “missing it.” But the deduction doesn’t need to be major. Start with a $10 per check deduction. Even that adds up. After six or eight months, increase the deduction by $10 or $20. Before long, you’ll have a comfy little cushion to fall back on.
• Cash only – It can be hard to wean yourself from the ease of using credit cards, even when you find you can’t pay the cards off each month. Ease off by declaring two or three days per week as, “cash only” days—and stick to your guns. No cash, no purchase—even it’s just a grande latte.
• Break bad habits – aside from health or other issues, smoking regularly, or stopping for a beer after work or a fancy coffee each morning are habits that really add up. Adjusting your lifestyle in small ways can put you on track to saving if you stash the cash you didn’t spend each day.
• Eating out – Cut out two or three restaurant meals each week and put the money you saved into an envelope. You may be surprised at how much it totals in a week. Packing lunch and cooking in a little more often can pay off big in savings.
• Saving coins – Empty your pockets or change purse each evening into a jar or piggy bank. You may be amazed each month to see how that change adds up!
October 24, 2011 5:36 pm
Halloween can be thrilling for little superheroes, zombies, and fairies, but it can be stressful for moms and dads concerned with their safety. And with tens of millions of kids trick or treating this year, that's a lot of worried moms and dads. Plastics Make it Possible®, an initiative sponsored by the plastics industries of the American Chemistry Council, offers some tips on how a little plastic can help make Halloween a little less scary – at least for parents.
• Time To Reflect – Add reflective plastic tape to costumes and trick-or-treat bags to make your kids more visible.
• Be Afraid (of fire) – Keep your little ones supervised and away from flames – candles, Jack-O-Lanterns, marshmallow roasts—and make sure all costumes, wigs and accessories are labeled flame resistant.
• Modify the Mask – Some Halloween masks can obstruct vision and breathing. Take scissors to the plastic mask to expand the eye and mouth holes so your little zombie can see and breathe.
• Dagger Danger – Make sure that your Grim Reaper's scythe or your Ghostface's dagger is soft and flexible plastic.
• Light the Night – Experts recommend that children carry a flashlight (use fresh batteries!) to help them see and be seen—or a glow stick or little flashing decorations, at least.
• Careful Contact – If your child doesn't carry an I.D., simply jot down name/ address/contact info, place it a small plastic zipper bag and slide it into a pocket. It's easy to find in an emergency, won't dissolve if wet and doesn't broadcast information to strangers.
• Phone Home – A cell phone adds another layer of safety —preset home and parent cell numbers in the phone. Although cell phones made with tough plastics hold up to rough treatment, soft plastic phone cases add further protection if your little ghoul fumbles the phone.
• Candy Care – Check all goodies before munching away. Most candy is wrapped in plastic wrappers to provide protection; treat the unwrapped treats with great suspicion.
"Halloween means costumes and candy to kids, but safety is top of mind for parents," saysSteve Russell, vice president of plastics for the American Chemistry Council.
"Fortunately, there are many inexpensive, readily available products made with plastics that can contribute to Halloween safety and help parents achieve a bit more peace of mind."
For more information, visit www.plasticsmakeitpossible.com.
October 24, 2011 5:36 pm
It is easy for car buying consumers to fall in love at first sight with the sleek styling and attractive exterior of their dream machine. In most American households today, a vehicle purchase is a major financial expense, so a second look and an extensive test drive is time well invested.
AAA Automotive experts recommend that consumers start that test drive at the computer keyboard. Valuable information about vehicle safety features, performance data, and purchase pricing and resale value can be researched online. AAA can assist consumers shopping for a vehicle by providing information they need to make an educated decision at AAA.com/AutoBuying.
"In today's economy, consumers have additional factors to consider when purchasing a vehicle, often making the selection process more difficult and extensive," says John Nielsen, AAA Director of Automotive Repair, Buying, and Consumer Information. "There is no substitute for quality research and an in-depth test drive tailored to your personal driving needs, to help make a sound financial car buying decision."
The physical test drive is the next step in the car buying research process. An extensive test drive can reveal many important factors not immediately obvious at first blush.
AAA recommends the following test driving tips:
Before You Drive. Walk around the car. Is it the right size for the needs of your family? Check the quality of the assembly and the tightness of the body panel alignment. Check for bubbles and pitting on the paint and chrome. Open and close the tailgate or trunk and doors. Does it sound solid and well made? Will the design allow for easy loading of luggage, sporting goods, and groceries?
Be a Backseat Test Driver. Ask the salesperson to take you for a preliminary test drive. You can focus on the ride without the distraction of driving, and you're more likely to notice noise and overall comfort. And, of course, you can evaluate backseat room for future passengers.
Find Your Fit. Get in and try the car on for size. Check the leg room and visibility. How easy is it to adjust the seats? Are the controls easy to read, reach and use? Try all of the accessories and options, such as air conditioning, the sound system, and navigation aids.
On The Road. Drive the exact model of the car you want to purchase. Pick your own route for the test drive. If possible, pick a route that mirrors your daily driving routine. It's a good idea to test the car's ride quality and handling on a number of different road surfaces: city streets, hills, freeways, and winding roads.
Power. Test the engine's responsiveness in real-world conditions. Is there a smooth and constant delivery of power? Try merging onto the highway, passing, and stop-and-go city driving. Spend part of the test drive with the air conditioner on to see if it drains power.
Transmission. Look for smoothness and ease of operation. Listen for hesitation or straining.
Handling. Check steering responsiveness. Practice long turns and sharp turns. Safely practice sudden swerves and gradual lane changes.
Brakes. Your life could depend on your brakes, so put them to the test. Brake both softly and decisively to gain an accurate idea of the car's stopping distance.
Noise Level. At various speeds, listen for excessive engine, road, and wind noise. Check for squeaks and rattles coming from the interior and bodywork. Listen with the windows open and closed.
Parking. Parallel park to discover any blind spots or potential difficulty in identifying the corners of the car.
For more information, visit AAA.com.
October 24, 2011 5:36 pm
One of the best ways to protect a family's financial future is with a term life insurance policy. Renewable life insurance is affordable, can provide a lump sum to the beneficiaries, replace income, pay off credit card debts, cover housing expenses, medical costs and funeral expenses, in addition to covering the cost of a child's higher education. With a wide range of plan options, TermLifeInsurance.com offers money-saving tips for cost-conscious consumers.
TermLifeInsurance.com recommends five ways to save money on a term life insurance policy:
1. Buy as a young adult. Whether a person is just starting a family or wants to in the future, one can save money by locking in low rates when they buy as a young and healthy adult.
2. Choose the appropriate length of coverage. Term life insurance policies are flexible and can generally be purchased in increments anywhere from five to 30 years. One should consider their unique situation. An individual with young children and a home mortgage might consider enough protection to cover their mortgage and send the kids off to college.
3. Buy the right amount of coverage. When choosing between policies, think about how much coverage is actually needed to maintain the family's lifestyle and cover final expenses. Many recommend a policy amount about six to ten times the policyholder's gross annual income; however, one should only buy a plan that is affordable in their current situation.
4. Be healthy. This may seem obvious, but the savings are surprising. Some companies charge twice as much for high-risk individuals who smoke. Being smoke-free and maintaining a healthy weight can add up to hefty savings.
5. Shop around and compare rates. Get multiple quotes from competing life insurance agents and companies in order to save the most on a policy.
For more information, visit www.TermLifeInsurance.com.
October 24, 2011 5:36 pm
Mortgage. Legal document that creates a lien on property; it secures the repayment of a loan.
October 24, 2011 5:36 pm
Q: What does a mortgage broker do?
A: Much like a stockbroker helps you buy stocks, a mortgage broker can help you purchase a home loan. Because the broker has access to many lenders, you will be able to select from a wide variety of loan types and terms that fit your specific needs.
Note, however, that brokers are not obligated to find the best deal for you. Of course, if you agree in writing to have one act as your agent, that is an entirely different story. This is why it is important when looking for a broker to contact more than one, just as you would any other lender.
Compare their fees and ask questions, particularly about how they will be paid. Sometimes their fees appear as points paid at closing or the compensation is factored into the interest rate, or both. In any event, haggle with the broker and the lender for the best deal.
Real estate agents normally maintain contact with several brokers. Ask your agent for recommendations.
October 21, 2011 5:34 pm
Interest rates are still low for people with excellent credit, so update your records and purchase a credit report from a reputable credit report provider.
However, sometimes the score you see doesn’t match up with what your lender pulls up, leaving you wondering what happened.
First, you need to understand a little about credit scores. Your credit score is a three-digit number that helps lending institutions assess their risk associated with lending you money. Credit scores are used for home loans, auto loans, personal loans and credit cards.
However, it doesn’t end there. Your score may also be considered for non-lending purposes, such as new utility services, cell phone services, renting an apartment, a lease, auto insurance and even to assess your character as part of a new job background check.
People with lower credit scores may pay higher interest rates or may not be approved at all. Whereas, those with higher, less-risky credit scores often qualify for lower interest rates and special options. Credit scores are calculated based on computer “predictability” models. These models are designed to compare and analyze credit information and credit utilization patterns from your credit report against thousands of other consumers. The data is then evaluated using a complex mathematical algorithm that generates a credit score the moment a report is ordered.
There are literally trillions of score combinations used in the calculations. Most credit scores are calculated and provided individually by each credit bureau, including the three major ones in the U.S., which are Experian, Equifax and TransUnion. Additionally, many lenders use third-party credit scoring systems, such as FICO, NextGen, CE Score and VantageScore. For consumers, the variations in scoring models and score ranges can create some confusion.
In 2006, the three major bureaus joined forces to create a single credit scoring system called the VantageScore. The VantageScore and FICO model lead the industry as competitive rivals in credit-scoring systems.
VantageScore provides a standardized universal mathematical formula to create a credit score from data found on reports from the three major bureaus. Your VantageScore may not be exactly the same if your lender only orders a credit report from one of the bureaus. This is because the data each bureau receives may be slightly different.
As an example, if your auto loan lender does not report your payment history to Equifax but does report it to Experian and TransUnion, it will create a difference in scores. In theory, the VantageScore should be more consistent across all three bureaus since the mathematical formula is the same.
Unlike FICOs traditional 300-850 credit score range, the VantageScore ranges from 501-990. There is no true way to compare the results of the VantageScore to a FICO score especially when the formulas are constantly changing. However, to put some perspective in place, a 650 FICO score approximately compares to a low, 800-range VantageScore.
Although the exact formulas and algorithms for calculating credit scores are closely guarded secrets, FICO and Vantage do provide general key characteristics that drive their credit scoring models. The one constant for both scoring systems is that paying your debts on time will typically be the primary factor that positively impacts your credit score.
October 21, 2011 5:34 pm
Maturity date. Date on which principal and interest on a mortgage or other loan must be paid in full.
October 21, 2011 5:34 pm
Q: What are the advantages of owning a home?
A: There are many. Among the most appealing: you own it, which gives you, instead of a landlord, control of your living space. Other benefits stem from potential tax savings and the build up of equity as your property likely appreciates in price over time. Equity can be used to help put children through college, purchase a second home, or make home improvements.
The mortgage interest paid on a home loan is tax deductible, as is the local property tax. If you get a fixed-rate home mortgage loan, you also can invest more wisely knowing your monthly mortgage payment, unlike rent, will not change substantially.
October 21, 2011 5:04 pm
Can I interest you in an incentive? I am not one to walk away from a good idea, and across the country, we are seeing more and more innovative incentives being packed into various local or national real estate programs.
For instance, Fannie Mae is currently offering buyers an incentive of up to 3.5% in closing cost assistance through October 31, 2011. Learn more at: fanniemae.com.
There’s a great program in Baltimore, where a total of $500,000 available for the first 50 buyers of Vacants to Value properties. (baltimorehousing.org) Homeowners can qualify either by finding a recently rehabbed home that the city qualifies, or by purchasing a still-vacant home with a rehab loan or 203(k).
Guy D. Cecala, the publisher of Inside Mortgage Finance, an industry trade publication says “Everyone is coming up with incentives—mostly (for) buyers in the market for a non-distressed home who can take the most advantage of incentives.”
Cecala also suggested a few things buyers can do to make the most of the incentives available today:
The best approach to negotiating incentives is knowing how much sellers are willing to pay and, if this is new construction, what the builders are offering, says Cecala. Often, builders are willing to work with buyers on things like customizations and property upgrades.
Talk to at least two or three lenders to see who will give you the best offer, Cecala says. Since real estate is very localized, the best way to find out about deals is to talk to people in your area of interest. In addition, if a friend or family member recently bought a home, find out what incentives were offered to them. Realtors are another great source of information.
Do your homework
Try to keep abreast of real estate market news. Besides this site, Cecala suggests the National Association of REALTORS®’ website, Realtor.org, and the National Association of Home Builders as good places to start.