How To Improve Your FICO Score

The U.S. housing market recovery is underway. New home sales are at a multi-year high, housing starts are at pre-recession levels, and home builders plan for a strong 2013.

Since late-2011, falling mortgage rates have boosted buyer purchasing power. Now, today, in many U.S. markets, the number of active home buyers outnumbers the number of active home sellers. It's among the reasons why home supplies remain scarce and why home prices are rising.

Roughly 20 percent of today's home buyers purchase homes with cash. For everyone else, the ability to gain mortgage approval depends on income, assets, and, most importantly, credit scores. Your credit score is a predictor of your future payment performance and lenders pay close attention. 

If you plan to buy a home in Kent or anywhere else in the next 12 months, spend some time with this The Today Show interview. It's five minutes of practical credit scoring advice, including separation of credit score myth from credit score fact.

Among the credit scoring tips shared :

• How to get your credit checked without harming your credit score
• The value of using automatic payments with credit cards
• How to use "old" credit cards to boost your credit score

You'll also learn about utility companies and why you should never be late with payment.

As compared to August 2011, last month's average, mortgage-financing home buyer's FICO score improved 9 points to 750. The average "denied" mortgage applicant's FICO score was 704. Clearly, standards are high. However, credit scoring is a system and, with time, you can improve your rating. 

Watch the interview and find ways to make your credit score better. With better credit comes better mortgage rates.

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How To Help Your Home Appraise At Its Fair Market Value

Home values are rising in many U.S. markets. The S&P/Case-Shiller Index has home values up 1.2 percent as compared to last year, and the government's Home Price Index shows an increase of 3.7 percent.

This has been partially evidenced by rising median home sales prices nationwide. Versus last year, the median sale price of a new construction home has climbed 17 percent, and the median sale price of an existing home sale is higher by 10 percent.

For home sellers, an improving market means the chance to net more proceeds from a home sale. Or does it?

In this 3-minute piece from NBC's The Today Show, we hear about the home appraisal process and how it may be limiting the number of home sales nationwide, plus the prices at which homes are selling. 

The interview includes several key insights into the home appraisal process :

• In a rising housing market, a home's appraised home value may be lower than its "true" market value
• Short sales and foreclosures can make a negative impact on a home's appraised value
• Consolidation in the appraisal industry has lowered product quality and may be harming valuations

One key take-away from the video is that home owners in Seattle should provide their home appraisers with as much relevant information as possible -- especially information which may not be publicly-available. This includes records of recent "all-cash" sales of comparable homes which were never formally listed for sale.

One in three purchase agreements are canceled because of appraisal issues, according to the interview. Take steps to make sure yours is not among them.

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Insurance Policies : Which Do You Need, Which Should You Skip?

Insurance is protection against unexpected expenses and insurance policies are available for nearly any scenario you can envision -- even your own ransom. But just because an insurance policy is available, that doesn't mean you should buy it.

Some insurance policies give you good bang for the buck. Others are plain wasteful.

In this 3-minute segment from NBC's The Today Show, you'll hear of several common insurance policies and their relative merits to people of WA who purchase them.

For example, Americans will spend an estimated $450 million on pet insurance this year. Because of the policies' restrictions and deductibles, though, it's an insurance policy that rarely pays off. This is one reason why financial experts often recommend that you pass on purchasing pet insurance.

Within the segment, other reviewed insurance policies include :

• Mobile phone insurance
• Flight and travel insurance
• Extended warranties for electronics
• Umbrella policies
• Renters insurance

There's also discussion about home warranties, and why you should avoid policies that last longer than one year.

Insurance should be an important part of your overall financial plan. However, the key is to have the proper policies in place, with an appropriate amount of coverage. Review your policies annually and keep your coverage current.  

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Tax Tips : What To Do With Your Tax Refund

The typical U.S. taxpayer will receive roughly $3,000 in federal income tax refunds this year -- an average of $250 per month. So, what would you do with an extra $250 monthly? This segment from NBC's The Today Show offers some advice. 

Whether you've already filed your annual taxes for 2011, filed an extension, or will squeak by on the deadline, you could probably be doing more with your taxes. The above video shares some tips. It's four minutes of solid insight on tax refunds, tax withholdings, and reducing your household's overall "bad debt". There's something for everyone.

Among the points covered in the tax refund piece :

• Consider changing your personal payroll exemptions so your 2012 refund is $0
• Remember that refunds are not "free money" -- it's your money. Spend wisely.
• Use your tax refund to fund retirement accounts

Advice is also shared about how to use your tax refund to fund a reserve account, or emergency fund. As a homeowner or home buyer in Seattle , applying tax refunds to a savings accounts in this manner can go a long way. When you're a homeowner, maintenance costs can be sudden and unexpected. A furnace can explode, for example; or, a roof could spring a leak. Having money set aside for crisis is essential.

Having a savings account will also improve your household's long-term financial stability. 

As a reminder, in most years, federal income tax is due April 15. However, with Tax Day falling on a Sunday and with the federal government closed for a holiday the following Monday, U.S. taxpayers in WA and nationwide get a reprieve until Tuesday, April 17, 2012.

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Are You Wasting $471 Per Month On Your Mortgage?

According to Freddie Mac's weekly mortgage rate survey, for 13 straight weeks, the average 30-year fixed rate mortgage has held below 4.000% for mortgage applicants willing to pay up to 0.8 discount points plus a full set of closing costs.

These are the lowest mortgage rates in history and now -- with a bevy of loan programs for the nation's 11 million "underwater homeowners" including HARP, the FHA Streamline Refinance, and the VA IRRRL -- millions of U.S. homeowners can exploit the current mortgage rate environment.

In this 4-minute clip from NBC's The Today Show, you'll learn about today's mortgage market and your refinancing opportunities in WA.

The video begins by telling us that 14 million credit-worthy Americans have yet to refinance their respective mortgages, and are leaving an average of $471 in "wasted savings" on the table each month which adds up to more than $5,600 annually.

That's a big number.

Some of the video's other key points include :

• Refinancing is "worth the hassle" when mortgage rates are as low as they are today
• The best rates are reserved for homeowners with the highest credit scores
• Comparison shop -- your current mortgage lender may not offer you the best rates

Furthermore, the video reveals the characteristics of the homeowner type most likely to benefit from a refinance. These traits include having with 20% equity in the home; have plans to live in the home for at least the next 36 months; carrying a current mortgage rate of 5 percent or higher.

It should also be added that, with a zero-closing-cost or low-closing-cost mortgage, even a small reduction in your mortgage rate can make a refinance worthwhile.

Mortgage rates are low but can't stay low forever. If you haven't participated in the Refi Boom, talk with a loan officer and review your mortgage options. You may be able to save hundreds of dollars per month with just modest closing costs. 

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Quick Tips : Boost Your Credit Score For Better Mortgage Rates

Credit scores play a huge role in today's mortgage market -- larger than at any time in recent history. Blame it on the high default rates of the last half-decade. Lenders are reserving their lowest rates for the customers most likely to make on-time repayments.

Mortgage rates are at an all-time low in WA. However, the low rates you see advertised on TV and online are only available to the home buyers and would-be refinancers whose credit scores are pristine. Having a high credit score is often the difference between getting "the best rates" from your lender, and getting something worse.

The first part of improving your credit score is understanding how it works. In this 5-minute piece from NBC's The Today Show, you'll learn the basics :

• Why you shouldn't close a credit card after you pay off a large debt
• What is the maximize balance to leave on your credit cards, relative to your credit limit
• What types of credit checks harm your credit scores, and which ones don't

You'll also learn how to shop for a mortgage with multiple lenders without having your credit score "dinged", as well as several proven methods to raise your credit score quickly.

In the end, good credit scores are the result of paying bills on time and staying with your means. Those with the best scores, get the best rates.

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Will Home Values Rise This Year?

Will your home gain value over the next 12 months? Nobody can know for sure, of course, but should recent housing trends continue, there's concrete cause for optimism.

The housing economy has suffered since 2007, knocking home values down nearly 20% nationwide. And while some areas have fared better as compared to others but, in general, home values are down. 

Mortgage rates are down, too, and that's good news for buyers in Seattle. The combination of low rates and low prices has led home affordability to an all-time high. As you'll hear in this 4-minute interview with NBC's The Today Show, carrying a mortgage costs 25% less per month as compared to just 3 years ago.

Some other notes from the interview include :

• There are more buyers out looking for homes today, which leads to more sales
• The housing market is expected to get gradually better, month-by-month, in 2012
• Foreclosures will continue to be a big part of the housing market

With housing supplies shrinking, buyers throughout WA may find their best "deals" today -- before the Spring Buying Season begins in February.

However, we can't forget that housing markets are local -- not national. Each town and neighborhood has its own market drivers and prices where you live may have already started to climb.

For accurate, up-to-date data on the housing market, talk with a local real estate agent. 

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Should I Refinance My Home?

With mortgage rates at all-time lows, you may be asking "Is now a good time to refinance?". This short interview from NBC's The Today Show offers good insight.

Refinancing a mortgage is about more than just "low rates". For example, there are costs associated with giving a new mortgage and even with the average, 30-year fixed rate mortgage near 4 percent, the costs of a such a move can outweigh the benefits -- both in the short- and long-term.

The video originally ran in September when mortgage rates averaged 4.09%. Rates are different today, but the offered advice remains relevant.

Some of the key points raised include :

• The lowest rates come with the highest costs. Consider a slightly higher-rate option from your bank.
• Falling home values may make it harder to qualify for a refinance in the future. Your best time to act may be now.
• If you're many years into a 30-year loan, you can consider switching to a 15-year mortgage to avoid "resetting" your term.

And, lastly, the interviewee makes a strong point that your refinance should save you enough money to make paying the closing costs "worth it". Make sure the break-even point on your closing costs versus your monthly savings occurs within a reasonable time frame.

At 4 minutes, the The Today Show video is short, but dense with quality information. For follow-up on whether a refinance makes sense for your situation, be sure to talk with your loan officer.

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Fall Fix-Ups For Your Home

It's October and the fall season has officially started. For homeowners throughout WA and nationwide, the change of season is a well-timed, "preventative maintenance" reminder.

As temperatures cool, there are a handful of do-it-yourself projects you should undertake in order to keep your home in tip-top shape through the winter. This 4-minute piece from NBC's The Today Show highlights just a few of them.

Calling it a "Fall Fix-Up Checklist", The Today Show's interview is fast-paced and wide-ranging. Some of the topics covered include :

• Pick up all fallen leaves to limit damage to grass and "critter" invasions
• Unclog gutters to protect windows and foundations
• Turn off outside water sources and remove water from pipes and hoses

The home-tip video also shares how to find air leaks in your home, and how to fix them. Reducing air leaks can lower your home's heating and cooling bills by thousands of dollars annually.

Although the highlighted projects are DIYs, you may feel more comfortable hiring a professional. Know your "handyman limits", and remain safe at all times.

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Capitalize On Low Interest Rates In Overlooked Places

It's no secret. Rates are low right now. And, it's not just mortgage rates, either -- all types of rates are scraping rock-bottom. Borrowing rates, lending rates and savings rates are at or near their all-time lowest levels.

As a homeowner in Renton , one way to take capitalize on today's low rates is to apply to refinance your home. But there are other ways to take advantage, too.

In this 5-minute piece from NBC's The Today Show, you'll learn of a half-dozen ways to exploit the current rate environment, including:

• Refinance a car loan from a high rate to a low rate, for cheap, in an hour
• Balance transfers between credit cards with teaser rates lasting up to 20 months
• Move some savings to an "online" bank where savings rates are higher

The interview's theme is to examine both where you're spending and saving your money, and make sure you're doing what's best for your budget.

Federal Reserve Chairman Ben Bernanke has pledged to hold the Fed Funds Rate near 0.000% until at least 2013. So long as the Fed Funds Rate is low, there will be places you can save.

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What Perks Does Your Favorite Credit Card Offer?

Last week, the Federal Reserve pledged to leave the Fed Funds Rate near 0.000 percent until at least mid-2013. For credit card holders in WA who carry a monthly balance, this is good news. Because of the Fed's call, credit card rates are unlikely to rise before mid-2013.

But cardholders can save on more than just interest costs, as you'll learn from this two-and-a-half minute piece with NBC's The Today Show. In the interview, you'll hear about "built-in" perks offered by most credit cards and ways by which you can save on everyday goods and services.

For example, did you know your everyday credit card might offer:

• Travel perks : Automatic trip cancellation protection and car rental insurance.
• Shopping perks : Discount admission to concerts and museums; free shipping from overseas.
• Consumer perks : Price protection against a drop in price; insurance against theft; extended warranties.

And it's not just "high end" cards that offer these options, either. Credit cards of all types do what they can to improve consumer loyalty. Offering free perks is just one way in which they try.

Most credit cards offer websites detailing cardmember perks and benefits. Visit the site of your favorite card and see where you might save on everyday items.

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What To Know Before You Move To A New Neighborhood

As home buyers in the Seattle area , we tend to research homes a lot. We look at square footage; at upgrades; at landscaping; at community statistics; and, at every other "number" on which we can get our hands.

But those are just statistics. What about the home's "feel"? 

In this 5-minute piece from NBC's The Today Show, you'll learn a dozen complementary home-shopping techniques to help you review and evaluate a home for purchase. Each is focused on findings you won't see listed on a website.

For example, instead of scheduling your second showing for the same time of day as your first one, revisit a home during an "opposite" time. if you originally saw the home in daylight, go see it at nighttime. If you first saw a home on the weekend, go see it during the work week.

By seeing a home in two distinct settings, you can get a better feel for what the home and neighborhood are really like.

Some of the other tips from the video include:

1. Visit during Rush Hour and on a Saturday night. This will help you gauge sound levels of the street.
2. Go to Google Maps and study the aerial shot of the home. What's nearby?
3. Talk to neighbors. They'll share everything about the neighborhood with you -- good and bad.

When you buy a home, you committing to more than just the property. You're committing to the neighborhood, too. Armed with the methods described in this video, you'll be better prepared to make a good decision.

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How Healthy Is Your Bedroom?

Most people spend about one-third of their life in the bedroom. So, how healthy is yours?

In this 5-minute piece from NBC's The Today Show, you'll learn about dust mites, mold and the other hidden health risks in your bedroom. Some may be compriming your sleep, and others your well-being.

The interview is comprehensive and covers a lot of ground, including:

• The importance of an excellent vacuum with HEPA filters
• The advantage of latex pillows over other pillow-types
• Why blackout curtains can help reduce blood pressure

The piece also talks on several goods reasons to leave your bedroom electronics-free.

For as much time as we all spend in our respective bedrooms, we should want it to be a healthy, clean place. Following the video's advice is a step in the right direction.

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Get That Last Drop Of Ketchup (And Other Household Money-Stretchers)

According to Consumer Reports, Americans waste as much as 25% of the products they purchase. From food to pharmaceuticals, pesky packaging is making it hard for consumers to use "the last drop" of the things they buy and, as such, products are thrown out prematurely.

It doesn't have to be that way. Using household tools and basic steps, you, too, can make less waste and stretch your household dollar. This 5-minute interview on NBC's The Today Show shows you how.

For example, you'll learn:

• How to get the last bit of ketchup from the jar (without adding water)
• How to get the last bit of hair gel from the plastic bottle
• How to get the last bit of body lotion from the bottom of the "pump" jar

Furthermore, you'll learn how to rescue over-ripe bananas.

The less you waste at home, the more money you'll save in the bank. Watch the video, take notes, and start making less waste.

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The Psychological Tactics That Supermarkets Use On Customers

More than 50% of supermarket purchases are "impulse buys". You may not have known that, but the supermarkets do. And they've built their stores accordingly. A fool and his grocery cart are soon filled to the brim.

In this 6-minute video from NBC's The Today Show, you'll learn how supermarkets use everything from packaging to placement so that customers spend more of their money with each store visit.

Among the supermarkets' tricks:

• Placing flowers and bakery at the front of the store to "make you salivate"
• Specific "deal wording" (e.g. Buy 5 for $5.00) meant to entice larger purchases
• Placing staples on top and bottom shelves, leaving middle shelves for impulse products

The piece also recommends shopping a supermarket in a clockwise-fashion. It helps you spend less time in the store.

We're all mindful of our household budgets. Watch this video to save more money on your next trip for groceries.

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Going On Vacation? Don't Tell The Burglars!

Want to help keep your home safe from burglars while on vacation? One smart way is to refrain from announcing your plans on various social networks such as Facebook. 

There's other common-sense tips, too, as shared in this 4-minute video from NBC's The Today Show.

Drawing from a series of interview with former convicts, you'll learn that there's more to keeping your home safe than just locking the doors and windows, and setting the alarm system for "away". You'll also want to make sure your home looks "lived in".

And some of these tricks you may have never thought of. 

For example, while on vacation:

• Make sure a neighbor is picking up your mail and newspapers daily
• If it snows, have a friend drive tracks in your driveway, or shovel it clean
• Set inside lights to a timer, giving the appearance someone being home

In addition, if you don't have a safe for valuables, consider moving them to a child's room. It's among the last places a burglar looks.

You can't make your home 100% safe from intruders but you can make your home a tougher target. Just use some common sense and follow the tips in the video.

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