I?ve Heard About FACTA; What Does It mean?
June 30, 2008
What FACTA means is that if you, as an individual, lose the information on anyone you have ever hired; or, for any business in the United States of America that collects any personal information on people, if the information should be lost due to not destroying the information properly, then two things can happen. First, there are federal fines of up to $2,500.00, and state fines up to $1,000, per employee, per incident. Second, the business is liable for any damages the individual suffers as the result of a breach of information.
Take an example that the company loses information due to negligent destruction (i.e. you don’t own a shredder and throw the information into the dumpster). Nothing in FACTA really determines what the employee has to do to prove "negligent destruction" on the part of the employer, so an employee could simply state that the employer had lost the information, and even if the employer had burned the information into ashes, it would be up to the employer to show that the information had not gotten out due to his or her company’s negligence.
A Qualified Mortgage Consultant Can Help Boost Credit Scores
June 29, 2008
Consumers interested in purchasing or refinancing a home will pay an interest rate based on current market conditions and their ability to pay back the loan. The borrower’s income and debt ratios are taken into consideration by the lender, as well as the predictability factor provided by credit scoring. It’s important to have a mortgage professional in your corner that has a keen eye for solutions to improving credit scores in an effort to get the best interest rate possible.
Interest rates associated with various loan programs are broken down into schedules based on credit score ratings. While each lender has its own guidelines, it’s safe to assume that as the consumer’s credit score goes down, interest rates will go up.
A borrower with an outstanding credit rating will get what is called an A-paper loan. This type of borrower is rewarded with a lower interest rate because they have a proven track record of using credit sensibly and paying their bills on time.
Loans designed for consumers with less-than-perfect credit ? sometimes referred to as "sub-prime" ? can range anywhere from A-minus, B-paper, C-paper or D-paper loans.
Guide to Loan Terms
June 28, 2008
Listed below is a guide to loan terms. It is a useful list of definitions of loan terms that may or may not be familiar to you. Keep it nearby as you will never know when you might need it for quick reference.
Accrue
Process in which interest accumulates on a borrower’s loan.
Amortization
A repayment method in which the amount you borrow is repaid gradually though regular monthly payments of principal and interest over the term of the loan.
Annual Percentage Rate (APR)
The APR shows the cost of a loan expressed as a yearly interest rate, including the interest and other fees associated with the loan.
Application
First step in the official loan process to gather and record information about the potential borrower.
Borrower
Person who has been approved to receive a loan and is then obligated to repay it.
Capitalization
Adding unpaid accrued interest to the principal balance. Capitalizing interest increases the principal amount of the loan and the total cost of the loan.
Collateral
Property pledged as security for a loan to ensure repayment of a loan.
Credit Agencies/Credit Bureaus
Renters Have Much to Gain by Pursuing Home Ownership
June 28, 2008
Buying a home vs. renting is a big decision that takes careful consideration, as most mortgage consultants will agree. But the rewards of home ownership are great. For many years, purchasing real estate has been considered an extremely profitable investment. It is an achievement that offers a sense of pride, financial stability and potential tax advantages.
Yes, there are certain responsibilities associated with owning a home. Landlords will often argue the benefits of renting, and for obvious reason. If you are renting, you’re helping them make their mortgage payment.
The numbers are staggering if you look at it this way. If you are paying $1,000 per month for an apartment, and you know your rent will increase 5% every year, then over the next five years you will pay your landlord $66,309. If you are currently renting a house, you may be paying much more than that each month. Either way, you gain no equity by shelling out this monthly housing expense and you certainly won’t benefit when the property value goes up!
Why Does FACTA Matter to Me?
June 27, 2008
FACTA stands for Fair and Accurate Credit Transaction Act. FACTA is the law which allows any American access to their credit report once per year. The law went into effect Jan. 1, 2005. So what does that mean for you as an employer?
On June 1, 2005, a new provision of FACTA goes into effect. It says that any employer (even if you only employ one person, and you have their personal information so that you can pay social security taxes,) whose action or inaction results in the loss of employee information, can be fined by federal and state government, and sued in civil court.
A USA Today article on FACTA from Jan. 14. 2005, stated "Bet you didn’t know that." But you need to know, and need to know what you can do to protect yourself.
Small Businesses affected the most
‘”A small businessman who makes a mistake could bear the brunt of a regulation like this,” says James Plummer, policy analyst at Consumer Alert, a non-profit group that focuses on a free-market approach to consumer regulations.’
How You Feel Affects How You Shop & How Much You Spend
June 26, 2008
Have you ever stopped to think about how your “mood” affects the way you shop, not to mention the amount you spend? Think about it.
If you want to save a lot of money, avoid shopping whenever you are in one of these moods:
DEPRESSED, UPSET, or ANGRY
It’s very dangerous for your pocketbook to shop when you’re either depressed, upset or angry. Why?
Many people find that shopping takes their mind away from their problems. In fact, it probably does. But how much does it cost you?
Not only does shopping not solve your problems, but you will also spend money that you did not originally intend to spend.
When you’re not feeling “well”, instead of shopping, do something where you do not have to spend money. Go to a park. Check out the local library. Go on a nice jog or bike ride.
Remember that if you HAVE to get out of the house, plan an activity where you do not have to spend money. You’ll feel much better about this decision after you have cooled down (or cheered up). 
Envy Shopping
Education Loans Can Augment The Boundaries Of What You Can Achieve
June 25, 2008
Education never ends ? it is not said without reason. We are educated all our lives and getting an education not only is a great achievement but something that gives you the tools to find your own way in the world. Education is indispensable; little do we realize how much more it can bring to us in terms of worldly amplifications. Anyone can have propensity and the natural endowment for education. But one might not have the resources to finance their education. You certainly can’t let lack of resources impede you from advancing your prospects through education. Then you accidentally stumble upon the word ‘education loans’. Loans for education ? you have never thought about it as a feasible arrangement. Education loans can open newer panoramas in regard to your education aspirations.
Home Buyers Face Decisions that Affect Their Long-Term Financial Picture
June 24, 2008
Taking the step for prospective home buyers.into home ownership is one of the most important financial decisions a person will make in their lifetime. There are many factors to consider when embarking on this venture. Literally hundreds of loan programs are available, and it is important to find the one that best fits your personal long-term goals.
First and foremost, you must have a mortgage consultant in your corner that is willing to take the time to know what your long-term goals are. Communication is the key factor here.
Curious prospective home buyers sometimes turn to Internet-based services just to see what current interest rates are. But a faceless web site will not take the prospect’s future financial planning into consideration or guide the potential borrower through the many nuances of the loan process. When shopping for a home loan, be wary of web-based services that offer programs to reel prospects in with attractive rates that are based upon unrealistic time frames.
Credit Card Is Adding The Silver Lining To Your Pocket
June 23, 2008
In the new millennium plastic money or credit cards has rendered a new zing factor to your pocket. This has not only made you economically more flexible but subsequently added glamour to your financial image as well. No more bulging out hip pockets with excess of liquid cash. Instead, the slimmer your pocket; the smarter you look. But behind all these inviting attributes of credit cards there seems to be a trap laid out for people who are impulsive and careless.
The usage of credit cards have been on the highest spree this decade and along with the usage, the debt rates has also somersaulted sky high. Majority of the citizens of the U.S. owe thousands of dollars as credit card bills. While gross dollar volume on bank credit cards has increased 2.5 times since 1994, the average transaction has increased about 16% over the past decade. The average transaction on a general purpose credit card, carrying the VISA, MasterCard, American Express, or Discover brand, is now approaching $102, compared to $87 in 1994.
Kings Bay Saint Marys & Kingsland Georgia - Affordable Home Mortgages
June 23, 2008
Buying a home is usually the largest purchase any of us will make in a life time. When choosing a home, you want to find one that suits your families needs best. Take the same steps when choosing a mortgage company!
When you are looking for a mortgage company, do your homework! Interview the loan officer and ask him what he or she has to offer you in terms of savings, interest rates and mortgage loan products.
Ask for a Good Faith Estimate of Settlement charges. Ask the lender if there is a lock fee and for how long?
A good lender should discuss with you the different programs that they offer. Most lenders offer VA, FHA and Conventional mortgage financing. You should discuss with the lender your future plans, such as how long you plan to live in the home. This will help them determine if a fixed rate or an adjustable rate mortgage works best for you.
