02/01/2007

A Private Topic Worthy of Repeating

February 1st seems like a great date to repeat some of the hot topics about information privacy and remind you of actions you can take to keep your personal information as private as possible.

For most of us, there are things we like for folks to know about us. Just as importantly, there are things we prefer they NOT know. Unfortunately, the private part of our lives has become more public than we would like and many feel ‘exposed’ as a result of it. State and Federal legislation can help, but it will not erase information about us that has been readily available from past years. Bottom line, you can take some pro-active steps to remove your name from mailing lists, phone books, and web sites, but this will take time and attention from you and a dedication to repeat these steps frequently.

Once you decide to ‘go private’, establish a game plan. First, conduct your own investigation and find out what information about you is already public. Start by checking phone listings and popular internet search engines. Secondly, determine what you think is ‘okay’ to remain public and what you would like to convert back to your private life. Determine the sources for release of the information you want to remain private and contact those sources to inquire about removing your information from these sources. Put your social security number, financial account numbers, and other information you consider sensitive at the top of your privacy list. Thirdly, recognize that you give out your private information to other people more than anyone else does. If you enroll for a supermarket discount card, complete on-line registration for warranties related to products you’ve bought, subscribe to magazine subscriptions by mail, or register to win sweepstakes contests, you divulge information that you may prefer to keep private.

Helpful tips: Always ask four questions when your social security number is requested: How will you use it?  How will you protect it? Is it really necessary for you to have it? What happens if I don’t give it to you? Adding your phone number to the national do not call list is a good thing to do. Complete and return those opt-out letters you get to remove your name from mailing lists that get sold over and over again. And don’t forget to shred personal documents before trashing them.

02/15/2007

Is it time to refi?

I am often asked when would be a good time to refinance a home mortgage. A good answer to this question can change daily. There are many variables that must be considered when analyzing this situation. Let’s look at a few situations that could lead you to a refinancing decision soon.

Did you buy your home within the last two years? If so, check the market values in your area to see if your home’s value has survived the recent stagnation or decline in the real estate market. Unless you bought in a coastal area or where market values spiked the most since 2000, your home’s value probably maintained average market appreciation values. If this is the case and current mortgage rate shopping reveals you might improve your situation, go for it! Some economists predict steadily rising mortgage rates in 2007.

Did you finance your home with an exotic mortgage product? I’m specifically speaking of interest only mortgages or pay-option mortgages. If this is your situation, you need to first evaluate your home’s current market value and compare this to your mortgage loan balance. Even though your monthly payments may be low, your mortgage balance could be increasing if the minimum payments you’re making don’t cover the monthly interest due. If this is the case, the unpaid monthly interest adds to your mortgage balance, which is called negative amortization. Does this sound familiar? If so, you’re feeling the pinch of an upcoming interest rate change—definitely a payment increase—coupled with a mortgage balance that might be higher than when you purchased your home. You should check with your mortgage lender to determine your refinancing options as soon as possible. And stay away from exotic mortgage products! They help people buy houses now that they cannot afford later.

Did you finance your home with a long-term fixed rate mortgage and now find that you will be moving within the next 5 years?  If so, consider a 5/1 adjustable rate mortgage (ARM). I define this as a flexible mortgage product and not an exotic mortgage product. You might possibly refinance to a lower fixed rate for the next 5 years and avoid payment increases from rising adjustable rates because you sell you’re house before then.

A final word: Commissions can influence advice. Always consult a trusted source for mortgage financing options.

Back to President's Articles

02/01/2007

A Private Topic Worthy of Repeating

February 1st seems like a great date to repeat some of the hot topics about information privacy and remind you of actions you can take to keep your personal information as private as possible.

For most of us, there are things we like for folks to know about us. Just as importantly, there are things we prefer they NOT know. Unfortunately, the private part of our lives has become more public than we would like and many feel ‘exposed’ as a result of it. State and Federal legislation can help, but it will not erase information about us that has been readily available from past years. Bottom line, you can take some pro-active steps to remove your name from mailing lists, phone books, and web sites, but this will take time and attention from you and a dedication to repeat these steps frequently.

Once you decide to ‘go private’, establish a game plan. First, conduct your own investigation and find out what information about you is already public. Start by checking phone listings and popular internet search engines. Secondly, determine what you think is ‘okay’ to remain public and what you would like to convert back to your private life. Determine the sources for release of the information you want to remain private and contact those sources to inquire about removing your information from these sources. Put your social security number, financial account numbers, and other information you consider sensitive at the top of your privacy list. Thirdly, recognize that you give out your private information to other people more than anyone else does. If you enroll for a supermarket discount card, complete on-line registration for warranties related to products you’ve bought, subscribe to magazine subscriptions by mail, or register to win sweepstakes contests, you divulge information that you may prefer to keep private.

Helpful tips: Always ask four questions when your social security number is requested: How will you use it?  How will you protect it? Is it really necessary for you to have it? What happens if I don’t give it to you? Adding your phone number to the national do not call list is a good thing to do. Complete and return those opt-out letters you get to remove your name from mailing lists that get sold over and over again. And don’t forget to shred personal documents before trashing them.

02/15/2007

Is it time to refi?

I am often asked when would be a good time to refinance a home mortgage. A good answer to this question can change daily. There are many variables that must be considered when analyzing this situation. Let’s look at a few situations that could lead you to a refinancing decision soon.

Did you buy your home within the last two years? If so, check the market values in your area to see if your home’s value has survived the recent stagnation or decline in the real estate market. Unless you bought in a coastal area or where market values spiked the most since 2000, your home’s value probably maintained average market appreciation values. If this is the case and current mortgage rate shopping reveals you might improve your situation, go for it! Some economists predict steadily rising mortgage rates in 2007.

Did you finance your home with an exotic mortgage product? I’m specifically speaking of interest only mortgages or pay-option mortgages. If this is your situation, you need to first evaluate your home’s current market value and compare this to your mortgage loan balance. Even though your monthly payments may be low, your mortgage balance could be increasing if the minimum payments you’re making don’t cover the monthly interest due. If this is the case, the unpaid monthly interest adds to your mortgage balance, which is called negative amortization. Does this sound familiar? If so, you’re feeling the pinch of an upcoming interest rate change—definitely a payment increase—coupled with a mortgage balance that might be higher than when you purchased your home. You should check with your mortgage lender to determine your refinancing options as soon as possible. And stay away from exotic mortgage products! They help people buy houses now that they cannot afford later.

Did you finance your home with a long-term fixed rate mortgage and now find that you will be moving within the next 5 years?  If so, consider a 5/1 adjustable rate mortgage (ARM). I define this as a flexible mortgage product and not an exotic mortgage product. You might possibly refinance to a lower fixed rate for the next 5 years and avoid payment increases from rising adjustable rates because you sell you’re house before then.

A final word: Commissions can influence advice. Always consult a trusted source for mortgage financing options.

Back to President's Articles