New Credit Card Minimum Payments

You should see a signifigant change in your credit score for the positive when you pay your credit cards down with a mortgage refinance.

The increase in the credit card Minimum Payment is generally bad news for consumers who don't own their own homes, however for homeowners this is an excellent reason to take advantage of the power of their home's equity and finally consolidate those high interest rate credit cards and car loans and roll them into a 30 or 40 year mortgage, spreading out the payments at a very low rate of interest by comparison, and reducing the total monthly spend for your family in the process. And you'l be even happier when you speak to your tax professional about how much money this will allow you to potentially deduct on your tax returns!

The new regulations on the minimum credit card payments will have a dramatic affect on many credit card users. People who typically have a payment of around $150, can now expect that payment to be as high as $350.

Under the pressure of ferderal regulators, banks are starting to announce that they are increasing minimum monthly payments on credit card balances. Obtaining a 2nd mortgage(HELOC, 2nd Trust Deed) can be a valid option to consolidate credit card debt and comes with the added benefit of deducting mortgage interest expenses.

Credit card debts just got harder to deal with. Since the new change in minimum monthly payments went into effect consumers across the board are feeling the pinch. This is one more reason to consolidate and reduce your monthly outgo. Stop paying such high interest rates and free up your cash.

The federal government had nothing but the best of intentions in mind when requiring these new credit card minimun monthly payments. Under the old Minimum Payment structure, many consumer credit cards with high balances would take 25 years or more to pay off by just making the Minimum Payment. The amount of interest that the card holder would pay in such a scenario would be astronomical. The one thing the government didn't fully consider is that making such larger monthly payments will prove very difficult, Cash Flow wise, for many Americans. If you find that making these higher credit card payments is creating Cash Flow difficulties for your household, speak with me to see if a debt consolidation refinance might make sense for you situation. What you want to avoid at all costs is falling behind on the credit card payments because once behind it becomes very difficult to get current. This will also lower your credit score making refinancing more difficult and expensive. You can see that it is always better to act before the situation gets out of control.

The average American household with one or more credit cards carries a balance of approx. $9500 dollars. An increase to the minimum monthly payment can impact one's budget severely. It is wise to seek advice from a mortgage professional if this is the case.

The way things stand now aren't a whole lot different then before. If you charge your credit card and make the Minimum Payments its just like taking a 20 year loan.

Interest rates on mortgages are much lower than those on credit cards. The interest on mortgages is also tax deductible which means you save even more when comparing to the interest on credit cards.

Also if you choose to consolidate your bills you typically will have a savings each month and sometimes you can save hundreds of dollars. Now if you take this amount or even a portion of the savings and apply it to the principle of your new loan you can pay that loan down much faster. One extra payment per year can shave almost 10 years off of a 30 year mortgage.

Home Improvement - Increase home value vs marketabilty

When contemplating a home improvement project it is important to understand the difference between improving the marketablity of your home versus actually increasing the value of your home.

While any improvement to your home inexpensive or expensive can increase the likelyhood of a faster sale, they do not necessarily increase the value of your home.

The actual value of your home is determined by an appraisal. The appraisal takes many things into consideration when determining the value of your home. Some important factors are condition, age, square footage, number of bedrooms and baths and location. Then he/she compares your home to other like properties in the surrounding area that have sold.

Don't understimate the value of proper landscaping and cleaning when showing or appraising a home. A well manicured lawn, healthy and well laid out trees & plants, fresh paint, gleaming floors, and clean exteriors go a long way toward boosting the marketability and perceived value of a property.

Some improvements that add value in the short term are: Adding square footage of living space such as additional bedroom, sunroom, playroom. Adding on a garage or deck will also increase your homes value.

Some of the best additions for adding value to a home are a second bathroom and energy efficent windows. Before you do any home construction project remember to check any local building codes and aquire the proper permits. Additions and modifications done to a home without a permit can cause trouble if you decide to sell your home at a later date.

If you have a home that is outdated then chances are you will not receive full value for the home but even if you do, it might have to sit on the market much longer than if you made some simple improvements. If your interest on your payments are $1,000 dollars a month and it sits on the market 3 extra months then you have actually spent an extra 3K on that property to get it to sell. Sometimes it makes sense to look at this and maybe take 2 or 3K and spend on paiting and misc. updates to make the home sell much faster. A good local realtor can help you determine what is selling in your neighborhood and help with the decision of where to place the money for the updates. A simple painting on the interior will do wonders for a home. But don't loose sight of the curb appeal too. If a potential buyer doesn't like the look from the curbside, chances are they won't get out to look at the inside.

Seasonal Income - This is income received by borrowers who consistenly work less than 12 months out of the year. These borrowers can include laborers, painters, gardeners, and construction workers.

You have to prove income when going full documentation which gives you the best rate for your situation. An alternative to proving income for those individuals with seasonal income or self employed is stated income. You only need to verify that you are currently working and can state the income you make. Your credit rating must be above a certain level (which is flexible with the subprime lenders in the market today) and you will receive a small hit on the interest rate for this type of loan.

If you are a seasonal employee or business owner who is facing tight times in the "off-season" and need some help, speak to one of our representatives about designing a program which will help you smooth out your expenses and control the amount you spend each month, as well as free up some cash today to help ease any pressure.

Seasonal income is average over the year to give a monthly income. If the income is proven seasonal you may be allowed to use any unemployment income that has been recieved if there is a history of it.

Seasonal income is also common among teachers who take up summer jobs. Ask your mortgage broker if your second job or seasonal job can help you qualify for your mortgage.