Twin Cities Habitat for Humanity (www.tchabitat.org) builds homes in partnership with families who demonstrate need and willingness to work with Habitat for Humanity by helping to construct their own housing.
What I think is fascinating about Habitat for Humanity is that they have retail outlets named "Restore" where quality new and like-new building materials are sold at discounted prices. The ReStore sells vendor return, scratch and dent, over stock, and items donated by individual donors. They have 4 retail outlets in Minnesota, and 400 retail outlets across the nation and the ReStore platform has been very successful.
You can donate your unwanted/old household items (ex. washer, doors, lighting fixtures, etc.) to a local retail outlet I like the way Habitat for Humanity has developed a national platform to recycle, reduce, and reuse.
The purpose of the ReStore is to generate revenue to fund Habitat homes, along with providing low cost building materials to the public, reducing the waste of building materials, and to expand the spectrum of donations.
The Minnesota or Minneapolis 'Restore' locations and driving directions can be found at www.tchabitat.org.
If you have any questions about Twin Cities Habitat for Humanity, then please contact me @ 612.919.2119 or scott@uptownfinancial.com
Monday, March 31, 2008
How do I remove Mortgage Insurance?
Removing mortgage insurance is something that can happen when the loan-to-value of your home mortgage reaches 80% or less. This happens as a result of two things, paying down principle and your house appreciating.
If you get to the point where you think your mortgage balance is less than 80% of the value of your home, you must call your mortgage company and ask them to remove your mortgage insurance. Mots companies will run an AVM or automated valuation model to determine the value of your home. AVMs are generally accurate but not always, so if the value comes in low and you get denied, you still have the option of ordering an appraisal.
With most if not all lenders you still have the right to hire an appraiser and get a professional assessment of value. If your appraiser comes back with the right value, you can submit that to your lender and ask them to remove the MI. They still reserve the right to review the appraisal. If after review your lender agrees with the appraised value, they will remove your mortgage insurance.
If you have any questions relating to Minnesota Real Estate and Mortgage Insurance, please contact me at 612.919.2119 or scott@uptownfinancial.com
If you get to the point where you think your mortgage balance is less than 80% of the value of your home, you must call your mortgage company and ask them to remove your mortgage insurance. Mots companies will run an AVM or automated valuation model to determine the value of your home. AVMs are generally accurate but not always, so if the value comes in low and you get denied, you still have the option of ordering an appraisal.
With most if not all lenders you still have the right to hire an appraiser and get a professional assessment of value. If your appraiser comes back with the right value, you can submit that to your lender and ask them to remove the MI. They still reserve the right to review the appraisal. If after review your lender agrees with the appraised value, they will remove your mortgage insurance.
If you have any questions relating to Minnesota Real Estate and Mortgage Insurance, please contact me at 612.919.2119 or scott@uptownfinancial.com
Friday, March 28, 2008
Nehemiah, FHA, and Minnesota Home Buyers
Minnesota Home Buyers, primarily those with moderate to low income, got a big break recently as a federal judge ruled that HUD did not adequately explained their decision to reverse a policy allowing seller-funded down-payment assistance on FHA-backed loans.What this means for home buyers nationwide is that 100% home financing is still available through a combination of the FHA and down payment assistance (DPA) companies like Nehemiah.
What is the Nehemiah Program?
Answer: The Nehemiah program is the nation's largest privately funded down-payment assistance (DPA) program, helping thousands of people achieve their dream of homeownership. The Nehemiah Program provides gift funds to qualified homebuyers who purchase participating homes using an eligible loan program. The Nehemiah program is approved to provide gift funds by the FHA (Federal Housing Agency) which allows charitable organizations to provide gift funds toward downpayment and closing costs.
Here are some of the features of the Nehemiah program:
Gift funds up to 6% of the final contract sales towards your downpayment and/or closing costs.
Gift funds for both first time and repeat homebuyers.
Gift funds for both new construction and resale homes.
No repayment of gift money.
No income or asset limits.
No geographical restrictions.
If you are a qualified homebuyer using an eligible loan program, such as an FHA loan, you may be able to move into your new home with zero cash out of pocket! The Nehemiah Program can help you become a homeowner!
For more information or to see if you qualify, call Scott Teigland at 612-919-2119
What is the Nehemiah Program?
Answer: The Nehemiah program is the nation's largest privately funded down-payment assistance (DPA) program, helping thousands of people achieve their dream of homeownership. The Nehemiah Program provides gift funds to qualified homebuyers who purchase participating homes using an eligible loan program. The Nehemiah program is approved to provide gift funds by the FHA (Federal Housing Agency) which allows charitable organizations to provide gift funds toward downpayment and closing costs.
Here are some of the features of the Nehemiah program:
Gift funds up to 6% of the final contract sales towards your downpayment and/or closing costs.
Gift funds for both first time and repeat homebuyers.
Gift funds for both new construction and resale homes.
No repayment of gift money.
No income or asset limits.
No geographical restrictions.
If you are a qualified homebuyer using an eligible loan program, such as an FHA loan, you may be able to move into your new home with zero cash out of pocket! The Nehemiah Program can help you become a homeowner!
For more information or to see if you qualify, call Scott Teigland at 612-919-2119
Thursday, March 27, 2008
The Importance of a Credit Score
What is the total financial cost of low credit scores over a lifetime?
Consumers with credit scores of 600 and below (as compared with consumers who have credit scores of 700 and above) will pay two to four percentage points more when financing a mortgage.
Question: How much does each point of interest cost a consumer per year and per month?
Answer: Each point represents 1% of the loan per year, divided by 12 = cost per month.
I.e.: If you have a $200,000 loan each point would cost you $2,000 more per year in interest (1%) making your payment $166 more per month for the life of the loan.
If one person has a 200,000 mortgage loan at 6% as opposed to someone who has a $200,000 mortgage loan at 10% they are paying $8,000 more per year in interest than they should be, this goes on year after year for the life of the loan.
So this means that 2 families can be living next door to each in the exact same home. Both burrowed the same $200,000 from the bank but one family’s mortgage payment is $666 more per month on the very same home.
Remember, not only do you pay more in interest each month for your loan with damaged credit you may also pay dramatically more to take out the loan in the first place.
Question: How much more can getting a loan with damaged credit cost?
Answer: 200 – 300% more!
I.e. when you take out a $200,000 loan it will cost you 1-2% for the loan this is why when you get your payment book it says you owe $202,000 on a home that you bought for $200,000.
However, you could pay 200 – 300% more for your loan with damaged credit. Meaning your outstanding loan will be increased $4,000 - $6,000 each time you refinance for the same $200,000 loan.
This is why most lenders do not have a great motivation to help you improve you credit in any substantial way; they make dramatically more money on people with damaged credit or more specifically, low credit scores. Obviously, this does not describe your loan officer or you would not be hearing about us and our services.
Things that impact you financially because of damaged credit.
1. Mortgage and rent payments
2. Car and recreational vehicle financing
3. Insurance costs
4. Credit card and household financing
5. Business loans
6. Jobs and promotions
People understand that low credit scores cost them more money on the things they finance but they have no idea how MUCH money it costs them.
If you have Credit scores of 600 or below; as compared with
someone who has credit scores of 700 or above you could easily
be paying $500 - $1000 more per month than you should be on the items you are currently financing, because of the higher interest rates you are paying.
Alternatively, if you were to take that same money and invest it over the life of that 30 year mortgage loan each $500 could easily grow into $750,000 during that 30 years. That money could be yours or your creditors, your choice.
At the end of the day you do not repair your credit simply to buy a house or a car. You improve your credit to permanently change your financial life once and for all.
Consumers with credit scores of 600 and below (as compared with consumers who have credit scores of 700 and above) will pay two to four percentage points more when financing a mortgage.
Question: How much does each point of interest cost a consumer per year and per month?
Answer: Each point represents 1% of the loan per year, divided by 12 = cost per month.
I.e.: If you have a $200,000 loan each point would cost you $2,000 more per year in interest (1%) making your payment $166 more per month for the life of the loan.
If one person has a 200,000 mortgage loan at 6% as opposed to someone who has a $200,000 mortgage loan at 10% they are paying $8,000 more per year in interest than they should be, this goes on year after year for the life of the loan.
So this means that 2 families can be living next door to each in the exact same home. Both burrowed the same $200,000 from the bank but one family’s mortgage payment is $666 more per month on the very same home.
Remember, not only do you pay more in interest each month for your loan with damaged credit you may also pay dramatically more to take out the loan in the first place.
Question: How much more can getting a loan with damaged credit cost?
Answer: 200 – 300% more!
I.e. when you take out a $200,000 loan it will cost you 1-2% for the loan this is why when you get your payment book it says you owe $202,000 on a home that you bought for $200,000.
However, you could pay 200 – 300% more for your loan with damaged credit. Meaning your outstanding loan will be increased $4,000 - $6,000 each time you refinance for the same $200,000 loan.
This is why most lenders do not have a great motivation to help you improve you credit in any substantial way; they make dramatically more money on people with damaged credit or more specifically, low credit scores. Obviously, this does not describe your loan officer or you would not be hearing about us and our services.
Things that impact you financially because of damaged credit.
1. Mortgage and rent payments
2. Car and recreational vehicle financing
3. Insurance costs
4. Credit card and household financing
5. Business loans
6. Jobs and promotions
People understand that low credit scores cost them more money on the things they finance but they have no idea how MUCH money it costs them.
If you have Credit scores of 600 or below; as compared with
someone who has credit scores of 700 or above you could easily
be paying $500 - $1000 more per month than you should be on the items you are currently financing, because of the higher interest rates you are paying.
Alternatively, if you were to take that same money and invest it over the life of that 30 year mortgage loan each $500 could easily grow into $750,000 during that 30 years. That money could be yours or your creditors, your choice.
At the end of the day you do not repair your credit simply to buy a house or a car. You improve your credit to permanently change your financial life once and for all.
Thursday, March 20, 2008
The Secret of Credit Cards
Please take the time to view this episode. It is meant to uncover the truths about Credit Cards.
You can watch the full program online. Follow the link below:
http://www.pbs.org/wgbh/pages/frontline/shows/credit/
In "Secret History of the Credit Card," FRONTLINE® and The New York Times join forces to investigate an industry few Americans fully understand. In this one-hour report, correspondent Lowell Bergman uncovers the techniques used by the industry to earn record profits and get consumers to take on more debt.
"The almost magical convenience of plastic money is critical to our famously compulsive consumer economy," Bergman says. "With more than 641 million credit cards in circulation and accounting for an estimated $1.5 trillion of consumer spending, the U.S. economy has clearly gone plastic."
Millions of American families use their personal, general-purpose credit cards such as Visa, Mastercard, American Express and Discover to make ends meet; credit cards have been a discreet lifeline for families in financial straits.
You can watch the full program online. Follow the link below:
http://www.pbs.org/wgbh/pages/frontline/shows/credit/
In "Secret History of the Credit Card," FRONTLINE® and The New York Times join forces to investigate an industry few Americans fully understand. In this one-hour report, correspondent Lowell Bergman uncovers the techniques used by the industry to earn record profits and get consumers to take on more debt.
"The almost magical convenience of plastic money is critical to our famously compulsive consumer economy," Bergman says. "With more than 641 million credit cards in circulation and accounting for an estimated $1.5 trillion of consumer spending, the U.S. economy has clearly gone plastic."
Millions of American families use their personal, general-purpose credit cards such as Visa, Mastercard, American Express and Discover to make ends meet; credit cards have been a discreet lifeline for families in financial straits.
Wednesday, March 19, 2008
Credit Education for Consumers
As 2008 gets going and spring is in the air, continued financial market woes abound. Oil prices are at an all time high, the U.S. dollar is at an all time low and the Federal Reserve is moving and shaking the short term interest rates almost on a monthly basis to stabilize our economy. Initial affects of the mortgage and credit crisis impacted the real estate industry only, but the trickle down effect continues. Builders, residential home material suppliers, sub-contractors, inspectors, appraisers, title companies, insurance agents, and the list continues to feel the economic slow down.
An old saying says "when the old dog is down, kick em" Unfortunately this competitive warrior mantra is coming true for many Americans. When the foreclosures and short sales are at an all time high and with the RRRRRecessionary economic picture affecting jobs and income, along comes the brutal treatment of consumer debts by credit grantors! Many creditors are activating the "Universal Default" clauses in their credit card and other consumer credit agreements.
Under a typical Universal Default clause, a card issuer could increase your interest rate to 30 percent or more if you are late enough paying a bill to earn mention on your credit report, even if you are current on that credit card.
In addition to jacking up the interest rates, creditors may change the limits on the credit accounts, and even close the accounts if they choose.
"It's horrible," said Kristin Arnold, who writes about credit cards for Bankrate.com. "You can't win with this. It affects all consumers, not just the ones that pay the credit cards late. . . . They can sit there and monitor your credit like a junkyard dog and then turn around and say, "hey, you paid your . . . cable bill late, so we're upping your interest on your credit card.' To me, that's like getting punished for getting in past curfew seven months ago."
Bankers counter that the system has evolved to allow people who pay on time to pay less for credit. "The price of credit for individuals is based on the risk," as noted by the American Bankers Association. "The more risky you are as a borrower, the (more) you pay for credit. And when your credit profile changes and you become a higher risk than you were previously, then your interest rate may be adjusted for that increased risk."
Universal default has received increased attention in news reports as consumers borrow more and have increasing defaults on debt obligations.
Reforms are needed. The system has problems . . . on the front end. They give people way too much credit that do not have the capacity to pay. How many credit card offers do you get in the mail every day? So, the availability of credit is too loose.
The credit-card companies are making a lot of money. The banks make a lot of money. So they need to invest that back into consumer education to teach people how it really works.
These are more reasons to work with your strategic partner Uptown Financial Corporation for all of your credit and debt needs. We provide information/direction that will educate and prepare people to be a savvy credit consumer.
An old saying says "when the old dog is down, kick em" Unfortunately this competitive warrior mantra is coming true for many Americans. When the foreclosures and short sales are at an all time high and with the RRRRRecessionary economic picture affecting jobs and income, along comes the brutal treatment of consumer debts by credit grantors! Many creditors are activating the "Universal Default" clauses in their credit card and other consumer credit agreements.
Under a typical Universal Default clause, a card issuer could increase your interest rate to 30 percent or more if you are late enough paying a bill to earn mention on your credit report, even if you are current on that credit card.
In addition to jacking up the interest rates, creditors may change the limits on the credit accounts, and even close the accounts if they choose.
"It's horrible," said Kristin Arnold, who writes about credit cards for Bankrate.com. "You can't win with this. It affects all consumers, not just the ones that pay the credit cards late. . . . They can sit there and monitor your credit like a junkyard dog and then turn around and say, "hey, you paid your . . . cable bill late, so we're upping your interest on your credit card.' To me, that's like getting punished for getting in past curfew seven months ago."
Bankers counter that the system has evolved to allow people who pay on time to pay less for credit. "The price of credit for individuals is based on the risk," as noted by the American Bankers Association. "The more risky you are as a borrower, the (more) you pay for credit. And when your credit profile changes and you become a higher risk than you were previously, then your interest rate may be adjusted for that increased risk."
Universal default has received increased attention in news reports as consumers borrow more and have increasing defaults on debt obligations.
Reforms are needed. The system has problems . . . on the front end. They give people way too much credit that do not have the capacity to pay. How many credit card offers do you get in the mail every day? So, the availability of credit is too loose.
The credit-card companies are making a lot of money. The banks make a lot of money. So they need to invest that back into consumer education to teach people how it really works.
These are more reasons to work with your strategic partner Uptown Financial Corporation for all of your credit and debt needs. We provide information/direction that will educate and prepare people to be a savvy credit consumer.
Tuesday, March 18, 2008
Understanding Your Credit Score
Payment history (the ability to pay on time) is the most important factor in determining a credit score.
The following are other factors:
35% Payment History
30% Balances Owed
15% Credit Length
10% New Credit
10% Credit Types
30% Balances Owed
15% Credit Length
10% New Credit
10% Credit Types
Monday, March 17, 2008
Understanding your Credit Score
Understanding Your Credit Score:
Your credit scores usually determine the price you pay for your mortgage and other loans. Credit scores range from 350 to 850, with 850 being the best possible credit score that you could receive, and 350 being the worst possible credit score. There are five factors that determine your credit score:
#1: Your Payment History - 35% impact on your credit score
Paying debt on time and in full has a positive impact. Late payments, judgments,
charge-offs, collection accounts and bankruptcies have a negative impact. The credit scoring systems evaluate how many late payments you have had and whether they were 30, 60 or 90 days late, or whether they are currently in default, with default being the worst situation. Additionally the systems look at whether the late payments were consecutive.
#2: The Balance You Owe vs. Your Available Credit Lines - 30% impact on your credit score
Keeping your credit balances below 50% of your available limit is very important. Keeping your balances below 30% of your available credit is even better. This is perhaps the single most misunderstood part of credit scoring. It is not how much you owe, but how much you owe compared to what you are able to borrow that matters.
#3: Your Credit History - 15% impact on your credit score
The longer your accounts have been opened, the higher your score will be; newly opened accounts will bring your score down.
#4: The type of credit that you have open - 10% impact on your score
A good mixture of auto loans and leases, credit cards and mortgages is always best. Too many credit cards is not a good thing; having 3-5 revolving credit cards open is optimal.
#5: The number of recent inquiries that have been made by creditors - 10% impact on your credit score
Inquiries affect the score for one year from the time the inquiry is made. Personal inquiries do not count toward your score. The score is only affected if potential creditors, such as credit card companies, auto finance companies, department stores and mortgage companies, check your credit. This is because the scoring system assumes that if you have many recent inquiries, you must be strapped for money and in some type of "panic" mode, trying to get credit wherever you can find it.
Your credit scores usually determine the price you pay for your mortgage and other loans. Credit scores range from 350 to 850, with 850 being the best possible credit score that you could receive, and 350 being the worst possible credit score. There are five factors that determine your credit score:
#1: Your Payment History - 35% impact on your credit score
Paying debt on time and in full has a positive impact. Late payments, judgments,
charge-offs, collection accounts and bankruptcies have a negative impact. The credit scoring systems evaluate how many late payments you have had and whether they were 30, 60 or 90 days late, or whether they are currently in default, with default being the worst situation. Additionally the systems look at whether the late payments were consecutive.
#2: The Balance You Owe vs. Your Available Credit Lines - 30% impact on your credit score
Keeping your credit balances below 50% of your available limit is very important. Keeping your balances below 30% of your available credit is even better. This is perhaps the single most misunderstood part of credit scoring. It is not how much you owe, but how much you owe compared to what you are able to borrow that matters.
#3: Your Credit History - 15% impact on your credit score
The longer your accounts have been opened, the higher your score will be; newly opened accounts will bring your score down.
#4: The type of credit that you have open - 10% impact on your score
A good mixture of auto loans and leases, credit cards and mortgages is always best. Too many credit cards is not a good thing; having 3-5 revolving credit cards open is optimal.
#5: The number of recent inquiries that have been made by creditors - 10% impact on your credit score
Inquiries affect the score for one year from the time the inquiry is made. Personal inquiries do not count toward your score. The score is only affected if potential creditors, such as credit card companies, auto finance companies, department stores and mortgage companies, check your credit. This is because the scoring system assumes that if you have many recent inquiries, you must be strapped for money and in some type of "panic" mode, trying to get credit wherever you can find it.
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