Good Credit is Crucial

In today's market having good credit is crucial. The importance of how much credit you have and how you use it goes far beyond shopping. Whether you have good or poor credit can affect where you live and even where you work, because your credit record may be considered by prospective employers.

If you want to buy a house, car, car insurance, or even apply for a credit card the higher your credit scores are the more money you will save with lower interest rates!!

Did you know that you are entitled to a free annual credit report?

You are.

The site to go to is http://www.annualcreditreport.com

OTHER IMPORTANT FACTS:
INACCURATE INFORMATION BEING REPORTED ON YOUR CREDIT REPORT CAN BE DISPUTED. THIS CAN BE DONE ON LINE OR IN WRITING.

If you have credit cards that you are not using your account can be closed by the credit provider which can lower credit scores. BEST ADVICE: Keep a small balance and ALWAYS pay on time.

Almost a third of your credit score is determined by how much you owe on your credit card accounts. If you have high balances your credit scores could be severely impacted by your revolving utilization. On the other hand, if you have no credit cards or have some credit cards but don't use them this could also have a negative impact on your credit scores.

BEST ADVICE: Try to keep account balances at least below 50% of the available credit.

Lastly, statistics show that consumers who have more inquiries are higher credit risks than those with fewer inquiries. It is for this reason that the more inquiries you have, the more points you lose in the credit score calculation. The exact point value taken for too many inquiries is a much argued topic and is impossible to give an exact point value because it really depends on all of the other information included in your individual credit profile.

The best strategy would be to only apply for credit when you absolutely need to.

If you have any questions about your credit report please feel free to give Vantage Mortgage a call.

732-238-6316

Why Banks Still Won't Lend

Excerpts from the article:

Why Banks Still Won't Lend

by Mara Der Hovanesian and Christopher Palmeri
Friday, January 9, 2009 provided by

“Right now there's little financial incentive to make fresh loans. In the current unease, new corporate loans are immediately marked down to between 60¢ and 80¢ on the dollar, forcing banks to take a hit on the debt. It's more lucrative, then, for them to buy old loans that are discounted already.

At the same time, some banks no longer have the appetite to use leverage, borrowing money to amplify returns. Others say they would like to use leverage but can't easily find willing lenders who offer attractive terms. Leverage has long been a critical factor in profitable lending.

Whether the industry's stance is justifiable or not doesn't really matter. Either way, companies are having a tough time getting credit. And without additional intervention, the lending climate could remain cloudy for a while, threatening companies' prospects and weighing on the economy.”

What is your take on this, If the Federal Government has given these lending institutions $350 Billion in TARP funds and is set to release the other $350 Billion, should they start making loans or just use the money to shore up their positions as mentioned in this excerpt from the same article:

“Banking chiefs defend their position. They argue that the government funds are designed to shore up capital and support lending, but that they have no obligation to make new loans. "It's not a one-to-one relationship," says BofA CEO Kenneth D. Lewis. "We don't write $15 billion in loans because we got $15 billion from the government."

What do you think; Inquiring minds want to know?

Low Mortgage Rates: 7 Things You Need to Know to Refinance

Low Mortgage Rates: 7 Things You Need to Know to Refinance

By Luke Mullins, USNews.com

Feb 2nd, 2009

 

Mortgage rates have declined sharply in recent months. Here's how to take advantage!

 

With mortgage rates dropping to record lows, it's no surprise that more and more homeowners are looking to refinance. Earlier this month, the Mortgage Bankers Association's refinance index--which tracks application volume--hit its highest level in more than five years. This wave of refinancing applications was sparked by record-low interest rates on 30-year fixed mortgages, which fell to an average of 4.89 percent for the week ending January 9. And although mortgage rates have increased modestly since then--hitting 5.24 percent last week-- interest in refinancing remains elevated. But while some borrowers will be able to turn these compelling rates into real savings, not everyone can get in on the action. To better understand the refinancing process, here are seven things you need to know to refinance in today's market.

1. Percentage point break: Despite the attractive rates, homeowners will have to thoroughly analyze their financial position before determining whether or not now is the time to refinance. A good rule of thumb, however, is if your mortgage rate is a full percentage point or more higher than current rates, you should consider refinancing, says Orawin Velz of the Mortgage Bankers Association. "If your rate is about 6 percent currently, then it is a good time to think about it," Velz says. (Keep in mind that anyone trying to refinance a so-called "jumbo loan"--one that's too large for Fannie Mae and Freddie Mac to purchase--will face sharply higher rates, says Keith Gumbinger of HSH Associates.) The transaction fees lenders charge are another major consideration. Higher fees, of course, eat into the potential savings of a reduced mortgage rate. So the lower the fees, the better. "The fees that you should be paying need to be low enough so that you can recoup your money through the break in the interest rate in a reasonable period of time--usually under four years," Gumbinger says. (More on fees below.)

 2. Half rejected: Although more Americans are looking to refinance, a significant chunk of applications won't be approved. In the first half of 2008, roughly 60 percent of refinancing applications were turned into loans, Velz says. "But because of the intensified turmoil in the second half of the year and continued decline in home prices, we believe that the rate has probably declined to [about 50 percent.]" In order to qualify for refinancing, homeowners will need to meet certain specific criteria.

3. FICO 740:  While 720 is still considered by some to be a solid FICO score, it's not good enough to obtain the best rates in today's refinancing market, says Chris Freemott, president of All American Mortgage in Naperville, Ill. Instead, borrowers will need a FICO score of at least 740. "FICOs are everything," Freemott says. "[A FICO score of] 740 is the benchmark for the lowest possible rates." Borrowers that don't have this score can still refinance, but they're likely to face higher rates.

4. Equity and documentation: Home equity can be another significant barrier to refinancing today. The real estate crash has sucked a great deal of equity out of homes. Zillow says roughly one in seven American homeowners actually have negative equity—meaning they owe more on their mortgage than their property is worth. In order to qualify for refinancing,  homeowners will have to have a minimum of 3 percent equity in their homes, Velz says. In addition to solid credit and home equity, borrowers will also need to be able to document their income in order to qualify for refinancing.

5. Fee paying options: Fees associated with mortgage refinancing vary widely from market to market and borrower to borrower. But on average, a $200,000 refinancing loan may come with up to $6,000 in fees, Gumbinger says. Borrowers have three main options for paying such fees. Those with enough cash may want to just pay the fees up front. Borrowers with less cash on hand may be able to opt for a higher interest rate instead of paying the fees. A third possibility is to have the fees tacked on to the principal of the mortgage, Gumbinger says. The key is to chat with your mortgage lender about structuring the fee payment so that it makes the most economic sense for you. "I've been doing this for 11 years now and… I've never written the same loan twice," Freemott says. "Everyone has a little difference to their situation."

6. Shop around: Given tougher lending standards and falling home prices, homeowners--especially those without perfect credit profiles--may have to get used to hearing the word no. But just because one lender turns you down doesn't mean you can't find another who's willing to refinance your mortgage. "Two or three years ago, lenders were crawling through the doors and windows to serve you," Gumbinger says. "We're 180 degrees out from there right now. You have to go find the lenders." So shop around. Research rates online, call up different lenders, and find out who's willing to offer you the best deal.

7. Be patient: The wave of refinancing applications comes amid a period of significant downsizing in the lending industry. That means there are fewer employees on hand to handle the surge in business. As a result, expect slow service. "The time to even find out whether your loan has been approved or not could run 30 days," says Mark Hanson, a managing director who handles real estate and finance research at the Field Check Group.

 

Life

It is 10:30 AM Friday Morning. I am sure by now all of us
have heard about the tragic plane crash in Buffalo NY.

Let's all offer our prayers and condolences to family and
friends of all of those who perished.

"Life is a song - sing it.

Life is a game - play it.

Life is a challenge - meet it.

Life is a dream - realize it.

Life is a sacrifice - offer it.

Life is love - enjoy it."

-Sai Baba

I guess we have no choice as to when our life will end so...

everyday try to do the best with what you have and most important

Live each day to its fullest and be happy!!

I came across an interesting article...

http://money.cnn.com/2009/02/12/real_estate/lenders_drop_mortgage_brokers/index.htm?postversion=2009021206



The link is to a CNN article with this heading:

Lenders drop mortgage brokers Some big banks are cutting out mortgage brokers and having lending generated by their own people. That could be bad for consumers.

F.Y.I. Vantage is celebrating it's 20 year anniversary.

News Release

NEWS RELEASE
For Release: Immediate
Contact: Harvey Levine, Esq.
Email: hrllaw@aol.com


INTEREST RATES AT THEIR LOWEST IN 40 YEARS!


In an effort to stimulate the economy, the Fed has lowered the prime rate to the banks that has not been seen in over 40 years. What does that mean for Main Street?

It means it is time to consider refinancing your current mortgage, consolidate your 1st and 2nd mortgage, purchase that rental property you have been looking at, or even fulfilling the American Dream and buying your first home at rock bottom prices with rock bottom mortgage rates!

In anticipation of the housing and refinancing boom, Vantage Financial Services, has increased the number of loan originators to better serve their clients. Amy, Ray, Nathan and Robert are seasoned mortgage veterans ready to help you get through the paper work and offer any advice that you may need.

Contact Vantage Financial Services at 732-238-6316 today.