Friday, October 11, 2013

Zillow Lender Review iPad Sweepstakes


Zillow Lender Review iPad Sweepstakes
ZILLOW® "2013 Lender Review" Sweepstakes Official Rules

Please read these Official Rules before entering this promotion (the "Promotion").   By participating in the Promotion, you agree to be bound by these Official Rules and represent that you satisfy all of the eligibility requirements below.

NO PURCHASE OR PAYMENT OF ANY KIND IS NECESSARY TO ENTER OR WIN THIS PROMOTION.

Eligibility:  The Promotion is open only to individuals, who are legal residents of the 50 United States or District of Columbia, age 18 or older (or the age of majority in entrant's state of residence), and who submitted a review during the Promotion Period (defined in the next paragraph) on a mortgage lender participating in Zillow Mortgage Marketplace. If you do not meet any of these requirements, or any other eligibility requirements in these Official Rules, you are not eligible to win a prize, and Zillow, Inc. ("Sponsor") reserves the right not to award prizes to you.  Directors, officers, and employees of Sponsor and Sponsor's advertising and promotion agencies, and their respective immediate family members and/or those living in the same household of each, are not eligible to win. Promotion is subject to all applicable federal, state and local laws and regulations and is void where prohibited.

Promotion Period:  There will be four (4) Promotion Periods (unless the Promotion is amended or terminated at Sponsor's sole discretion) as follows:
(1)    From 12:00 a.m. (all times Pacific Time) on January 1, 2013 until 11:59 p.m. on March 31, 2013;
(2)    From 12:00 a.m. (all times Pacific Time) on April 1, 2013 until 11:59 p.m. on June 30, 2013;
(3)    From 12:00 a.m. (all times Pacific Time) on July 1, 2013 until 11:59 p.m. on September 30, 2013; and
(4)    From 12:00 a.m. (all times Pacific Time) on October 1, 2013 until 11:59 p.m. on December 31, 2013.
(each, individually a "Promotion Period").  Except as otherwise expressly stated below (for mail-in entries), all entries must be received during the Promotion Period to be eligible to win the respective prize.

Entry:  Visit the Zillow website, located at www.zillow.com, and complete and submit a review form relating to your experience with a mortgage lender who has an account on Zillow. Note that reviews are subject to the Zillow Good Neighbor Policy and the Zillow Mortgage Marketplace Code of Conduct. If your review does not comply with these policies, or any other Zillow policies, Zillow may choose not to post your review, in which case you will not be entered into the Promotion. Alternatively, to enter without submitting a review on Zillow, clearly hand-print your full name, Zillow.com user screen name, mailing address, e-mail address, and daytime phone number on a 3" x 5" card, and mail that card in a hand-addressed envelope to Sponsor at: Zillow "2013 Lender Review " Sweepstakes, Zillow, Inc., 1301 Second Avenue, Floor 31, Seattle, WA 98101, Attn: Andrea Smolin. Mail-in entries must be postmarked no later than the last day of a Promotion Period and received within seven (7) days after the last day of such Promotion Period to be eligible during that Promotion Period. Ten (10) entries per person per Promotion Period. Entries become the property of Sponsor and will not be returned.

Prize:  One (1) winner from each Promotion Period will receive an Apple® iPad® (specific model and features selected at sole discretion of Sponsor) with an approximate estimated retail value of less than $500.00. Teleconnectivity not included. Sponsor reserves the right to substitute a prize of equal or greater value in its sole discretion. Odds of winning depend on number of eligible entries received.

Random Drawing: A winner will be selected in a random drawing from all eligible entries to be held no later than two (2) weeks after the last day of each Promotion Period.  The winner will be notified by U.S. mail and/or email within four (4) weeks after the last day of the respective Promotion Period. To claim a prize, the winner should follow the directions in winner's notification.  The prize winner may be required to execute an affidavit of eligibility and liability/publicity release within seven (7) days following the date of attempted notification. The prize will be awarded within thirty (30) days after winner verification. If a prize notification is returned as undeliverable, it will result in disqualification, and the prize will be awarded to an alternate winner in a separate random drawing. Prizes are not assignable or transferable, except to a surviving spouse. 

The prize is awarded "AS IS" and WITHOUT WARRANTY OF ANY KIND, express or implied (including, without limitation, any implied warranty of merchant-ability or fitness for a particular purpose), except that the prize will be subject to its manufacturer's standard warranty (if any). No substitutions or exchanges (including for cash) of any prize will be permitted, except that Sponsor reserves the right to substitute a prize of equal or greater value. The winner is responsible for all federal, state, local, sales and income taxes associated with receipt and/or use of any prize. Entry and acceptance of any prize constitutes permission to use winner's name, prize won, office affiliation, hometown and likeness for online posting and promotional purposes without further compensation, except where prohibited by law. Unless prohibited by law, winner will be required to sign and return an affidavit of eligibility, liability release, publicity release, tax forms, and other reasonable documentation provided by Sponsor before being awarded a prize.  If winner does not execute such documentation upon request, their prize will be forfeited and the prize will be awarded to an alternate winner.  The prize is guaranteed to be awarded. 

General: Sponsor will not be responsible for late, lost, illegible, incomplete, damaged or misdirected entries and accepts no responsibility for any injury, loss or damage of any kind resulting from an entrant's participation in the Promotion.  By entering the Promotion, each entrant agrees to these Official Rules and waives, and releases Sponsor and Sponsor's parents, subsidiaries, and affiliated companies, and all other businesses involved in this Promotion, as well as the employees, officers, directors and agents of each, from, all claims, costs, injuries, losses, or damages of any kind arising out of or in connection with the Promotion or delivery, misdelivery, acceptance, possession, use of or inability to use the prize (including, without limitation, claims, costs, injuries, losses and damages related to personal injuries, death, damage to or destruction of property, whether intentional or unintentional), whether under a theory of contract, tort (including negligence), warranty or other theory.  Sponsor reserves the right to amend these Official Rules or to terminate this Promotion.  Any provision of these Official Rules deemed unenforceable will be enforced to the extent permissible, and the remainder of these Official Rules will remain in effect.  Sponsor is not responsible for any typographical or other error in the printing of any Promotion materials, administration of the Promotion or in the announcement of any prize.  The Promotion and these Official Rules will be governed, construed and interpreted under the laws of the state of Washington.  Entrants agree to be bound by these Official Rules and by the decisions of Sponsor, which are final and binding in all respects.

Winner List; Rules Request:  For a winner list, visit http://www.zillow.com/wikipages/Lender-Review-iPad-Sweepstakes/ or send a self-addressed, stamped, business-size envelope anytime between four (4) weeks after the last day of a Promotion Period and one (1) year after the last day after a Promotion Period, to Sponsor at the address listed below, Attn: Zillow "2013 Lender Review " Sweepstakes Winner List (Andrea Smolin).  To obtain a copy of these Official Rules, visit http://www.zillow.com/wikipages/Lender-Review-iPad-Sweepstakes/ or send a stamped, self-addressed, business-size envelope to Sponsor at the address listed below, Attn: Zillow "2013 Lender Review" Sweepstakes Rules Request (Andrea Smolin).  Residents of WA and VT may omit return postage.

Sponsor:  ZILLOW, INC., 1301 Second Avenue, Floor 31, Seattle, WA 98101

Confidentiality:  Information provided by you to participate in this Promotion is subject to Sponsor's privacy policy at http://www.zillow.com/corp/Privacy.htm.

*****

Sweepstakes winners: Ted Montague, Krish Lakshminarayanan and Allyson Edwards.

Steven Banass
Director of Quality Control
truerate partners
350 Pfingsten Suite 103 l Northbrook, IL l 60062

Thursday, October 10, 2013

Glad you found us, Now SHOP US AROUND to be SURE!

Compare our Loan Proposal to the competition.

Now that you have found us, we ask that you do one thing… 
Compare our Loan Proposal to the competition.
Whether you are a first-time home buyer, refinancing your home or financing your third investment property, we strongly suggest that you compare our Loan Proposal with proposals from other mortgage providers.  After comparing our proposal to the competition.
The following information will help you compare loan proposals:
 Timing…
Interest Rates  are constantly changing;  to effectively compare interest rate and fee structures between two or more loan proposals you have to make sure they are created on the same day (preferably within one or two hours of each other).
Critical Information that impacts your interest rate and closing costs…
The following information have a significant impact on the interest rate and fee structure of your loan so it is important that the following terms be the same in each proposal:
  • Loan Amount & Purchase Price (or Appraised Value in the case of a refinance)
  • Lock Period (how long the interest rate is locked, e.g. 30, 45, 60 days)
  • Whether or not you will be required to escrow for property taxes and insurance
  • Loan Type (e.g. 30 year fixed rate, 3 or 5 year adjustable rate or interest only)
  • Credit Score of all borrowers
  • Property Type (SFR (Single Family Residence), Condominium, Town House) 
Accuracy and our guarantee…
We have created a four step process that guarantees the accuracy of our Initial Loan Proposal.
  1. We provide a detailed Initial Loan Proposal
  2. We encourage you to compare our Loan Proposal to others  you have received
  3. We lock your interest rate and provide you with a Final Loan Proposal
  4. We compare the Final Loan Proposal to your HUD-1 Settlement Statement.  We will make an adjustment if there is a discrepancy which  negatively impacts YOU.
Steven Banass
Director of Quality Control
truerate partners
350 Pfingsten Suite 103 l Northbrook, IL l 60062

Monday, September 30, 2013

Focus on Possible Government Shutdown: 5 Things to Know for the Week


The threat of a government shutdown looms as lawmakers reconvene Monday afternoon. Late Sunday, Congress showed no signs of an agreeable measure to thwart off a shutdown, possibly the first such occasion since 1996.
  • On Monday, AIG Bank will cease operations for retail deposit accounts. All existing accounts will be closed automatically. The bank had notified customers of the move in late July and all account transactions were no longer processed starting Sept. 13, in preparation of the account closures. AIG Bank is undergoing a transition from a traditional savings bank to a trust-only thrift.
  • As the last quarter of the year arrives, certain cash back credit cards will begin offering bonus cash back on new categories. Chase Freedom, Citi Dividend, Discover It and U.S. Bank Cash+ card members will have to enroll for the quarter’s new categories that earn 5% cash back.
  • For the government, the fiscal year begins Oct. 1, when the government may shut down because of divided policies on spending. A House bill was passed last week that would prevent a government shutdown, but it would delay the activation of the Affordable Care Act by one year. The Senate is likely to reject that bill. If there is a government shutdown, Americans can expect national parks and museums to close but postal service will be unaffected.
  • On Tuesday, each state’s health insurance exchange will go live as part of President Obama’s Affordable Care Act. Through March 2014, people can begin signing up for health care coverage. The Obama administration does not expect a major flood of enrollments in the initial weeks of availability. The President said that the exchanges will open, even in the event of a government shutdown.
  • The U.S. Bureaus of Labor Statistics will release the next jobs report on Friday. In recent months, the unemployment rate has dropped steadily to 7.3 percent in August. Since the Federal Reserve is using the jobless rate as the economic indicator to determine when it’ll raise interest rates, a decline rate is a good sign for savers. The central bank plans to hike rates when the unemployment rate drops to 6.5 percent.
  • Steven Banass
    Director of Quality Control
    truerate partners
    350 Pfingsten Suite 103 l Northbrook, IL l 60062

Wednesday, September 25, 2013

Mortgage Rates Fall to New 2-Month Lows

Mortgage Rates Fall to New 2-Month Lows
September 24, 2013
Mortgage rates were lower yet again, making for an astonishing 10th consecutive day without rates moving higher.  In the 13 days of rate sheets since the September 6th jobs report, rates have only risen once.  After only being able to claim 6-week lows yesterday, today's rate sheets are the best in at least 2 months (very close to 3 months).   Conforming, 30yr Fixed rates are now down to 4.375% for most efficient combination of closing costs and rate (best-execution) though several lenders have attractive buydowns to 4.25%.
With each passing day, we have more and more confirmation that the FOMC announcement and most recent Employment Situation Report marked and confirmed at least a short term turning point for interest rates.  This is the consolidation/correction that we'd been hoping for, and we're now a day or two into it. 
The future path of rates is fairly uncomplicated at the moment.  Markets are comfortable treating early September rates as near term highs as long as the economic data doesn't surprise to the upside.  That means that the fate of rates is tied to the economic reports that come out most mornings.  Stronger data will gradually persuade investors that the Fed will reduce the pace of bond buying sooner than later.
On some small scale, that was a risk this morning, but Consumer Confidence came in slightly weaker than forecast, and rates continued to improve. We'll face similar risks with tomorrow's data, but it will  either take a concerted effort from several reports or a strong Employment Situation report on Oct 4 to completely dash the dreams of this low-rate rebellion.  Between now and then we'll likely see some ups and downs, as opposed to the exclusively flat-to-sideways bias we've had since Sep 6th

Contact me today!

Steven Banass
Director of Quality Control
truerate partners
350 Pfingsten Suite 103 l Northbrook, IL l 60062

Monday, September 23, 2013

6 Homes Compared: What Can $200,000 Get You?

6 Homes Compared: What Can $200,000 Get You?


Saving up for a home that costs $200,000 isn't easy! Depending on the home’s location, you can live like a prince… or a pauper.
Two hundred thousand spent in different cities in the U.S. can get you drastically different properties. One of the homes in our slideshow comes with four beds and four bathrooms — another home comes with just one bathroom. That’s right, one bathroom, not even a bedroom!
Regardless of the property you decide to purchase, you’ll need to choose a payment plan and mortgage. Mortgage options will also vary from state to state.
Check out what $200,000 can get you these days…
Begin slideshow

Steven Banass
Director of Quality Control
truerate partners
350 Pfingsten Suite 103 l Northbrook, IL l 60062

Monday, September 16, 2013

6 Mortgage Mistakes to Avoid


Usually, buying a home and getting a mortgage can be an easy task if you get trusted advice from a real estate professional. You can end up getting a great deal on a mortgage or end up paying more than you really afford. But, with a major purchase such as a home, hasty decisions can end up costing hundreds of thousands of dollars in the long run.
Prospective mortgage borrowers have to take their time to cover all their bases, including must-do’s such as reviewing credit reports from all credit bureaus and shopping around for low mortgage rates.
These are some common mortgage mistakes that have tripped up many consumers and how you can avoid them:
Steven Banass
Director of Quality Control
truerate partners
350 Pfingsten Suite 103 l Northbrook, IL l 60062
Begin slideshow

Tuesday, September 10, 2013

What Exactly Is a Rent-to-Own Home?


A rent-to-own home, also known as a lease-to-own or lease-purchase home, is a house that is up for sell, but instead of selling directly, the seller will allow the buyer to pay rent on the home with an option for purchase.
The length of this transaction is usually between one and three years. In order to better understand how a rent-to-own option works, think of it in as a car lease for your house. As the buyer, you pay a rent, a rent premium, and an option fee in order to reduce the down payment for the house later.
This type of agreement can be mutually beneficial for both parties; however, it can also come with some hefty disadvantages.

Why use rent-to-own?

Why would a seller want to use a rent-to-own option? At a time when the housing market is stagnant, it may be the best option for a seller instead of paying two mortgages. A rent-to-own is advantageous for the seller as it allows them to make income on their house through the buyer’s rent payment. It also allows both parties time to develop their credit.
For buyers, this option enables them to enter an agreement to purchase a home when they currently do not have enough money for a down payment. Paying the rent premiums and the option fee will reduce the amount needed for a down payment on the home.
The purchase price, length of rent-to-own agreement, option fee, and rent premium are negotiable between the seller and buyer.

Purchase price and option fee

Before signing any contracts, it is usually best for both parties to consult or hire a real estate agent. Once the purchase price is put in place, it is set for the duration of the contract. Whether housing prices rise or fall, both parties must abide by the set purchase price. The option fee is a one-time upfront payment and the rent premium is a fixed monthly payment.
The option fee is usually between 1 and 5 percent. The option fee and the rent premiums are credited to the buying of the home and the seller takes in the rest of the rent as income.

What to be aware of

If at the end of the option period (the length of the agreement) the buyer decides not to buy, then the seller keeps the option fee and rent premiums as income. For example, if the parties agree to a price of $100,000, the option fee and rent premium total $5,000 when the option is exercised. From the standpoint of the lender, the price is $95,000 and a 5 percent down payment requirement would call for a down payment of $4,750 instead of $5,000.
One thing a buyer should seriously consider before entering into a rent-to-own agreement is whether or not they will qualify for a mortgage in three years. Although this is a great option for those who do not have good credit or a down payment ready at the present, it could be a lose-lose if the buyer’s credit or income doesn't fall within good standing later.
Be on the look out for a later article on the advantages/disadvantages for both parties in a rent-to-own agreement. If you would rather own, Use our How much Home do I qualify for tool.
Steven Banass
Director of Quality Control
truerate partners
350 Pfingsten Suite 103 l Northbrook, IL l 60062

Wednesday, September 4, 2013

7 Ways to Sell Your House Quickly and Make More Money


The housing game can be very profitable for one who wants to sell their house quickly and for more money. Of course there is no guarantee that your house will sell, but if you make your house stand out among all the rest in your market it can help you close faster and make the most money from the sale.
Offering different kinds of perks in addition to staging your house can attract potential buyers. These are a few techniques you can use to get the best offer closest to your asking price.

1. Seek professional help

It’s sometimes easy to overlook the obvious. The best thing a homeowner can do is find the best real estate agent for them. If you’re unsure of how to go about shopping for the best agent consider going to open houses, get referrals or go online.
Sites like Realtor.com and RealEstateAgent.com are a good start to look for the best agent.
But of course this is all fruitless unless you get the Mortgage with the lowest fees, rate and closing costs. See how much home you qualify here.

2. Warranty

You can offer a home warranty that you can pay for up to a year, and can be a bonus and give peace of mind to the future homeowner. Purchase a good policy that will run you a few hundred dollars. This is a great investment and a great incentive for the buyer.

3. Accept less in earnest money

An earnest money deposit shows the seller that a buyer is serious about buying a home. This money is usually held jointly by both the buyer and seller in an escrow account. If you decide to go this route, you may get a buyer who may be contemplating on their decision to buy the home by lowering the earnest money cost.

4. Clutter and more clutter

It’s a no-brainer that you have to clean out the house and make it look more like a comfy bed and breakfast instead of a crowded house. Toss out old knick-knacks and furniture that takes up a lot of space or consider donating it to the Salvation Army. Clear out the garage also as this is sometimes used as a storage space.

5. Make the inside and outside appealing

Keep the lawn manicured by having it mowed and trim shrubs. Replace the front door mat with a new welcome mat. Place small plants or pottery around the front door. If your house is online, this will be the first thing a potential buyer will see, so make it presentable.

6. Pay closing costs

Offer to pay some of the closing costs and have a professional agent look over your list and have it appraised for what will be covered. This can be a great perk, since the buyer wants to pay minimal closing costs.

7. Homeowner dues

If a new home buyer isn’t privy to what homeowner’s insurance is, or they can’t afford to pay the additional cost during closing, you can offer to pay the dues for one year. This can be seen as a sign of good will and faith on the buyer’s part.

Steven Banass
Director of Quality Control
truerate partners
350 Pfingsten Suite 103 l Northbrook, IL l 60062
DIRECT:  (224)-374-1470

Monday, August 26, 2013

To Rent or Buy? There’s More to It Than Money


After you have thoroughly researched the financial issues of the rent-versus-buy decision, let’s look at the issue from a different perspective, one involving emotional factors and personal preferences that collectively determine the impact of your decision on your quality of life. These “non-financial” issues are based on your personality, abilities and values.
They require careful consideration, beginning with this question: what attributes about the place you live in are most important to you? (If you haven’t yet researched the rent-vs-buy decision, see To Rent or Buy? The Financial Issues – Part 1.)
Environment: City Vs. Suburbs
The environment you choose to reside in plays a major role in your quality of life. Consider your personality. Do you like the character of the city, with its nightlife, quaint cafés and diverse cultures, or do you prefer the safety, conformity, green space and free parking in suburbia? Do you prefer to walk to work, take the subway or ride the train? How important is privacy, and how far do you like to live from your neighbors?
If you can afford only those properties in environments that do not fit your preferences, you need to think about whether you are willing to forgo these preferences for the sake of owning a place.
Amenities versus Customization
Dollar for dollar, renting generally offers a substantially greater number and variety of amenities than buying. Consider, for example, the number of homes that come with an Olympic-sized swimming pool, clubhouse, tennis courts, basketball court and on-site gym. If you’re looking to have these amenities in your private residence, get ready to spend a lot of money. Upscale apartment buildings, found in nearly every city, offer such options at a comparatively lower monthly rent than a mortgage for a property with the same attributes. On the other side of coin, there are affordable homes with private outdoor spaces that you can customize to your liking. There aren’t many apartment buildings that come with acres of property in the country that will let you do your own landscaping, keep horses or grow a garden.
Flexibility Vs. Stability
Renting a place to live gives you significantly more freedom to get up and go at a moment’s notice. The financial consequences of breaking a lease are minimal and can be addressed by simply writing a check. Homeowners wanting to leave their current residence face the much more complicated process of selling their property. The mortgage still needs to be paid and the grass still needs to get cut while you are waiting to find a buyer. Unless money is no object, the transition to a new place of residence is likely to take months, not days. On the other hand, with the flexibility of renting comes also some instability. The landlord can always raise the rent or ask you to move before you are ready to do so. If you own a house and make the payments, you can stay as long as you desire.
Personalized Aesthetics Vs. Less Work
Buying a house gives you the opportunity to choose a unique and distinct architectural style and to personalize it. But this freedom comes with the responsibility of keeping up with maintenance and repairs. Homeowners simply can’t avoid the need to cut the grass and fix leaky faucets. If you prefer to spend your weekends relaxing in the park instead of wandering the aisles at the local hardware store, you might want to think twice about buying a home – unless of course you can budget a substantial amount of money to hire some help.
Although renting gives you no control over exterior aesthetics, you don’t have to worry about dealing with wear and tear on your residence or problems resulting from bad construction. Renting still gives you plenty of opportunity to choose furnishings and decorate your interior environment in a manner that suits your style. And, as a renter, all you have to do when something goes wrong is notify your landlord.
Emotional Satisfaction Vs. Less Worry
Homeownership is often called “the American dream“. There’s just something emotionally appealing about putting down roots, getting involved in the community and having a place to call your own. Of course, homeowners also need to worry about the long-term character of the neighborhood and keep up with maintenance in order to sustain property values. If you’re simply looking for a place to rest between days at work and nights hitting the town, renting may be the perfect answer. Just keep paying the rent and let somebody else do all the worrying.
A Personal Decision
Unlike the financial aspects of homeownership, the aspects that have a bearing on your lifestyle and values cannot be calculated online with some mathematical formula. If you can make the rent payments or qualify for the mortgage, you can live anywhere that you want to live. But buying a home is a decision you should take some time to consider, determining how its location, amenities and need for repairs will affect your lifestyle and general emotional satisfaction.
Steven Banass
Director of Quality Control
truerate partners
350 Pfingsten Suite 103 l Northbrook, IL l 60062
DIRECT:  (224)-374-1470www.trueratepartners.com

Friday, August 23, 2013

10 Must-Know Money Moves for 30-Somethings


Your thirties… it’s a time when the stresses of life become real. You’re probably dealing with a new family, balancing a career, while memories of your partying days are fading fast.
It’s unavoidable that certain financial responsibilities come with this next chapter in your life, and we’ve highlighted ten of the most important.
1. Understand the retirement vehicles
While many twenty-somethings may have overlooked socking money away for retirement (as they’ll never get that old!), it’s extremely important to start thinking of your golden years in your thirties. Most Americans aren’t saving enough for retirement, and starting early is the surefire way to grow your nest egg.
Knowing the different retirements accounts(e.g., traditional IRA, Roth IRA, 401(k), etc.) at your disposal will help to maximize how you save for your future.
2. Forget spontaneous spending
Remember the time you booked a flight to Mexico on a whim? Most likely, you didn’t save for the trip and it cost you a pretty penny.
It’s time to hunker down and create savings goals (see number three below), instead of putting everything on your credit card and worrying about paying it off later.
3. Maximize the savings
Growing up with a passbook savings account as a child was a great way to start learning to save at a young age. As a 20-something, the savings account did not get much attention because the active lifestyle left little to be saved in the first place. But now, as the savings start to accumulate, you’ll see that the big bank isn’t paying much interest on your deposits.
It’s time to look at online savings accountscertificates of deposit (CDs) and other deposits accounts to grow your savings. Don’t forget strategies such as CD ladders to put these deposit vehicles to greater use.
4. Realize debt is a big deal
By this time, if you haven’t paid off your college loans, it’s time to increase your payments. Paying just enough to cover the interest is not an option anymore, as you have many other financial responsibilities to think about.
Paying more than the minimum payment is a requirement to eliminating credit card debt. For larger loans such as student loans, car loans and mortgages, you’ll be surprised how much an extra payment per year can reduce the lifetime cost of the loans.
5. Identify the money leaks
You’ve heard it before from financial experts on TV and online: create a budget! There’s a reason why this advice is so strongly advocated — tracking where you are spending your money is extremely important, as it can pinpoint spending problems.
Cutting back on certain expenses, like eating out or clothes shopping, can help curve spending. The goal is to find the problem areas and fix it, so you can save more. Withpersonal financial management tools, you don’t have to do much work to keep a close eye on your spending habits.
6. Investment-portfolio rebalancing
If you were reluctant to open an investment account in your twenties, now is the time to start one. Time is the one important factor in building a nest egg, so the earlier you start, the better.
Over time, your investments will rise and fall in value, causing a change in the risk of your overall portfolio. If stocks were doing well recently, you’ll find that stocks will make up a larger percentage of your portfolio. You’ll want to rebalance that risk by selling some stocks and buying more bonds.
Take a look at your portfolio every quarter or every six months to see if you need to rebalance. You can eliminate this financial task by investing in target-date (or life cycle) funds, which automatically rebalances themselves.
7. Minimize unnecessary fees
Fees on financial accounts can add up over the long term, and if you’re in your thirties, paying for unnecessary fees should be a thing of the past. Overdraft fees, late fees, brokerage fees, mutual fund fees and ATM fees are just some of the costs that can be avoided by creating account alerts, looking for account alternatives and automating payments.
Review each fee that you incur and research the available options to mitigate or eliminate that fee.
8. Create an emergency fund
As life gets more hectic, it also gets more expensive. Not saving for an emergency fundcan really hurt you financially. Even if you only put aside $100 a month, be sure you’re making this a priority.
Many Americans are left to deal with a mountain of debt after being hit with an unforeseen accident, emergency or tragedy.
9. Think about ways you can make more money
Whether it’s supplementing your income, or being savvy enough to ask for a raise — it’s time to think about how you can increase your take-home pay.
When it comes to a choice between cutting out the things you love (your daily cup of coffee, those expensive haircuts), most people would probably rather increase their income.
10. Learn how to negotiate
Whether it’s negotiating lower closing costs for your first home, a higher salary or your cable TV subscription, brush up on this important skill.
Most people accept the fact that they must pay a certain price for items, when in fact you can just about negotiate anything. Someone responding with a strong “no” is probably the worst that can happen.
Steven Banass
Director of Quality Control
truerate partners
350 Pfingsten Suite 103 l Northbrook, IL l 60062
DIRECT:  (224)-374-1470

Tuesday, August 20, 2013

What to Know Before Refinancing a Mortgage


There are many good reasons to refinance a mortgage, but it’s not right for everyone. Several key factors need to be considered to determine if refinancing is a viable way to meet financial goals.
First, you need to determine your goals for refinancing. Are you looking to reduce your monthly payments, or simply the amount you will pay over the duration of the loan? Is the goal to shorten the term of the loan? Other reasons to refinance include getting out of an adjustable rate mortgage (ARM) and into a fixed-interest loan, or to get into an ARM with better terms. Obtaining cash out from equity is another reason many homeowners choose to refinance.
Refinancing can be a way to achieve one or more of these goals, but generally only if you intend to stay in the home over a long term. If the plan is to sell in a few years, the cost of refinancing may not be recovered when the house is sold. It also may not be a sound economic choice if you've been paying on the current mortgage for a long time.
If your credit score is higher or your debt-to-income ratio is better than when the original mortgage was signed, it might be a good time to refinance. And to protect your credit score, it’s wise to hold off on applying for any new credit cards as soon as you decide to refinance and until after you close.
Like a mortgage, refinancing costs money. There are loan origination fees, application fees, a charge for activities like an appraisal or title search, and potentially other fees, and your current mortgage may stipulate a prepayment penalty. All of these costs need to be wrapped up in the refinancing package, along with the loan amount, even with so-called “no cost” refinancing. Once interest in calculated, the terms and total cost may not help you meet your goals.
If the primary reason to refinance is to pay down more of your loan, remember you can do this simply by increasing your payments. If a lower interest rate can be obtained, then refinancing to a 10- or 15-year mortgage may be a good choice if the payments fit your budget.
If payment reduction is the motivating factor, then a long term loan such as a 30-year fixed mortgage may be a smart choice, especially if you’re planning on staying in the home for a very long time. However, equity in the home will grow more slowly and the total cost of interest over the term of the loan may be very high. Take a look at the total numbers. For example, a Federal Reserve publication shows a fixed-rate loan of $200,000 at 6 percent for 30 years will carry a $1,199 monthly payment and the total interest paid will be $231,640. Meanwhile, a fixed-rate loan at 5.5 percent for 15 years will have monthly payment of $1,634, or about $435 more, and the total interest paid will be substantially less at $94,120.
If getting out of an ARM is the goal, it’s important to compare the annual percentage rate (APR), not just the quoted rate, to your current APR to see if you will really save money either over the term of the loan. If the difference isn’t at least one-half point, paying less over the course of the loan is unlikely.
Cashing out equity in the home may be another motivation to refinance, but you’ll want to compare the terms to a home equity line of credit (HELOC) or home equity loan. Also known as a second mortgage, this allows you to borrow against the equity in the home, meaning the portion of the home you own.
If you believe you might be underwater with your mortgage, meaning you owe more than the current value of the home, you may be able to refinance under the Home Affordable Refinance Program (HARP). An appraisal isn't required for HARP loans, which are designed to help homeowners with good payment history get into stable, affordable loans.
Shop around with lenders for terms and negotiate but also work with your current lender as some fees may be waived to keep your business with them. Less paperwork may also be required with your current lender, but you’ll have more leverage if you get several quotes in writing.
Steven Banass
Director of Quality Control
truerate partners
350 Pfingsten Suite 103 l Northbrook, IL l 60062
DIRECT:  (224)-374-1470

Tuesday, August 13, 2013

8 Things You Don’t Ever Need to Buy New


It’s sometimes a hassle to try to get the best values out of purchases without putting a dent in your wallet.  
If you’re strapped for cash or just love getting a good deal, consider making your next purchase through secondhand options such as consignment or buying used goods. Many high quality items can have a hefty life span even after they were bought used.
We highlight eight purchases that you should consider buying used to get the most value for your buck!
Begin slideshow

Steven Banass
Director of Quality Control
truerate partners
350 Pfingsten Suite 103 l Northbrook, IL l 60062
DIRECT:  (224)-374-1470

Thursday, August 8, 2013

Keep this Hand Guide to Mortgage Types - Truerate Partners Northbrook, Il

Keep this Hand Guide to Mortgage Types, and call me when you are READY! - Steve@truerate.us
Loan
type/terms
Fixed rate mortgage 30 yearsFixed rate mortgage 15 years
Fixed rate mortgage 20 years
Hybrid
ARM
Traditional
ARM
Balloon
Mortgage
Rate changesNever; fully fixed for entire termNever; fully fixed for entire termUsually after fixed period of 3, 5, 7 or 10 years, then annual change typicalFully variable, typically changing at one-year intervals; some have shorter change intervalsNever; fully fixed for entire term
BenefitsLow, stable payment; usually easiest qualificationStable payments; builds equity faster; lower total interest costs than 30-year termLower rates than fully fixed-rate mortgage; can sometimes borrow larger loan amount for same incomeCan have lowest interest rates, but qualification may not depend upon today's interest rateOften has lower interest rate/monthly payment over balloon period than fixed rate; similar to hybrid ARM
Drawbacks/RisksCan have highest total interest cost over time; user may "buy" more rate stability than actually needed, increasing costRequires higher income to qualify; less affordable monthly payment; funds commited to payment cannot be used elsewhereStable payment for a number of years, then unpredictable; rates can jump by as much as 6 percentage points at first adjustmentPayments fluctuate at each rate change; unpredictable, rates can change as much as 2 percentage points at each adjustmentLoan fully due and payable when balloon period ends; must be paid off or refinanced in unknown market conditions
Alternative strategyConsider Hybrid ARM with appropriate fixed periodConsider 30-year term and prepaying loan to preserve cash-flow flexibilityConsider Fixed rate mortgage or longest possible fixed period, if loan hold period not knownConsider Hybrid ARM to ameliorate rate and payment risks for a given periodConsider Hybrid ARM to ensure continued loan availability
These may be useful for…Purchasing a home; first-time homebuyers; refinancing to improve cash flow/lower paymentRefinancing to lower total interest cost; retiring mortgage more quickly; building or rebuilding equity more quicklyPurchasing or refinancing when time horizon is seven years or shorter, and where borrower can handle increase in monthly paymentsPurchasing or refinancing when interest rates are near top of cycle, and are likely to fall, or sale or refinance is anticipated within three yearsPurchasing or refinancing when time horizon is three years or longer and home will be sold prior to end of balloon period
Consider ifBuying or refinancing a home and planning on owning for longer than 10 yearsBuying second home; refinancing to build equity; paying off mortgage before life event (retirement, etc)Buying a home and expect to move before fixed period ends, or know income will rise to offset payment risk, even in worst-case scenarioBuying or refinancing when income can handle frequent payment changes and worst-case scenario for rates over a four-year periodBuying a home and expect to move before balloon period ends, or have resources to pay off mortgage if refinance not available
When shopping, ask about"Full cost" vs. "No cost" refinances, prepaying loan to shorten term if desiredIf 20-year term makes payment too high, whether 25-year term is availableInterest rate caps, for first and subsequent adjustments, worst-case scenarioA history of the Index the loan is keyed off, margin and capsWhether or not there is any built-in refinancing option when the balloon period ends

Wednesday, August 7, 2013

Time to Get Over these 5 Credit Myths


Credit and credit cards can be intimidating to manage, but having credit (good credit most importantly) is vital in today’s economy. Given the events that have transpired during the last few years, lenders are stricter. Fortunately, as the market is rebounding, so is lending optimism. Now is the time to understand your credit and where you stand. You may not agree that three-numbers should decide your credit faith, but lenders have been using this score as a determinant for a long time.
It is important to remember that your score doesn't reflect whether or not you are a good person, but whether or not you are a responsible person when it comes to the ability to manage credit. Again that does sound daunting; however, getting your credit in a manageable place and keeping it there can be simple.
The only thing that impedes this possibility is our own hang-ups about credit. Therefore, we need to find some sticks, build a bridge, and get over it.
Starting with these five myths:
Begin slideshow