Your rates of bank

The new old paradigm
CLTs began more than 30 years ago to preserve aging housing stock and revitalize blighted urban neighborhoods in the Rust Belt. Today, it’s the high cost of housing that is driving renewed interest in these little-known tools for more affordable home ownership.

“It’s one of those really well-kept secrets that shouldn’t be,” says Glen Gilbert, executive director of the National Community Land Trust Network, the 2-year-old CLT trade association.

Unlike traditional land trusts, which typically seek to preserve raw land, the goal of CLTs is to encourage owner occupancy and seed investment. CLTs are often promoted as a way to maintain sustainable, affordable neighborhoods for people like teachers, firefighters, policemen, public employees, service workers and other lesser-paid but vital members of the community.

(more…)

Not long ago, no-down payment loans were the height of fashion for homebuyers. But now that lenders have tightened their standards, borrowers once again are expected to “put some skin in the game,” to use the industry’s favorite catchphrase. That “skin” refers to the borrower’s own cash, and it means down payments are definitely back in style.- advertisement -

The chief advantage of a down payment today is simply the ability to qualify for a loan, since only a handful of so-called “zero-down” loan programs still exist. Yet down payments have other benefits, too.

(more…)

Dear Terry,
My significant other is interested in refinancing her car loan, but her credit could be better. I have a very good credit history and have agreed to co-sign.
Do lenders view the signers equally or is one more heavily weighted? And do both names need to be on the title?
— Kevin

Dear Kevin,
Lenders look at both applicants’ credit history and make an overall decision how likely it is that one or the other will eventually repay the loan. (more…)

Dear Terry,
I am 22 years old and drive a truck that’s costing me a $400 loan and $400 in insurance a month! I have a few speeding violations and an accident on my record. My truck is under my dad’s name — both loan and insurance.
I had a Chrysler Concord that died and I still owed on that loan. I had it for three months only, so the loan was still huge. So, the bank rolled the remainder of the loan into the cost and financing of the truck.

I simply cannot afford to pay $800 a month. It is causing a serious negative impact on my life. I have had to give up going to college because of this!

(more…)

To kids, summer camp is nothing more than canoe trips, swimming and making new friends, but to parents, it is no vacation for the wallet. Camp costs can add up quickly if parents aren’t careful when making choices of where to send their children during the hot summer months. - advertisement -

Peg Smith, chief executive officer of the American Camp Association, says summer camps are not looking to break your piggy bank.

“Most camps won’t put you in a situation where you get nickeled and dimed for everything that comes your way,” she says.

However, it’s important to know what camp will cost you — from tuition to special fees for trips and amenities.

(more…)

Dear Terry,
I am considering buying the car that I am now leasing, a Volvo S80 with very low mileage (under 18,000). The lease ends Oct. 27 of this year.
Is that a smart thing to do? If so, how should I approach the dealer about this?
— Nadia

Dear Nadia,
You should be in an excellent position to bargain with the leasing company for purchasing that Volvo. Right now, leasing companies are swamped with lease returns that are worth less than the agreed-upon value when the lease began. (more…)

Dear Terry,
My question is about motorcycle insurance. I am an older first-time motorcycle buyer. What is the cheapest way to insure my motorcycle? I have been insured with the same auto and home insurance company for 12 years with no accidents or claims.
Also, what do I check to make sure I don’t get a “lemon” motorcycle?
— Bud

Dear Bud,
Regarding insurance, your rate will depend on three factors: engine size, cost of the bike and whether you have taken motorcycle training classes. To compare insurance rates, check out InsureMe (a Bankrate company). (more…)

Give the Fed a hand

Give the Fed a hand

The Fed keeps reaching into the bag of tricks hoping to devise something that will alleviate this credit crunch, which has become like the movie villian that refuses to die. Their creativity is commendable, and thank heavens they’re not resorting to the been-there, done-that of more emergency interest rate cuts … at least not yet. The only thing further interest rate cuts will prove effective at doing is inciting inflation. But I’ll have all next week to crow about that, as the Fed meets March 18.

Friday the Fed announced an increase in the size of its Term Auction Facilities, or TAF, to $100 billion per month. The TAF is widely credited with bringing down LIBOR rates since their announced introduction in December. The Fed also announced a repurchase agreement last Friday that would include accepting as collateral mortgage-backed securities of Fannie Mae and Freddie Mac. These were done to create liquidity in areas of the mortgage market that are currently quite liquidity starved.

(more…)

One of the few silver linings to the rising cost of energy is that Uncle Sam has greater sympathy for you and will kick back some money if you purchase certain energy-saving products.- advertisement -

The Energy Tax Incentives Act of 2005 kicked in Jan. 1, 2006, and includes incentives to make your home more energy efficient and to give solar a try. They come in the form of tax credits, reducing federal tax bills dollar for dollar. Unlike many federal programs, they are not phased out for higher incomes.

The most generous credits are available for those who add solar water, heat or power to their homes. This tax break runs through 2008.

(more…)

When most of us have to tap our auto insurance, the issues are usually simple: How soon can I get the car fixed? What’s my deductible? Will my rates now go up?

But in the age of Carfax (where potential buyers can discover that your car was seriously damaged three years ago in a wreck) and increased efforts by insurers to limit their losses, two rare but important issues may come into play: diminished value and betterment.

Diminished value is an argument that once a car has been in a crash and been repaired, its value to the owner has diminished when compared to an identical vehicle that has never been damaged.

(more…)

Day trading was his mistress
Hayden sees many forms of financial infidelity in her practice, most of it harmless — at least at first. She says women in particular are often advised to keep a secret stash of cash on hand “just in case.”

“There’s a Yiddish word, ‘knipl,’ for little pots of money that have been used over the years by women,” she says. “That’s why when you clear out the house of an old woman, you go through all the pockets of all the coats and look through all the important books like the Bible, because there are little pots of money everywhere. Somehow, there is the illusion of safety if I can tuck away a $20 here and a $50 there.”

(more…)

Delta Burke may always be remembered as the feisty Southern belle, Suzanne Sugarbaker, in “Designing Women,” for which she received two Emmy nominations for best actress in a comedy series.- advertisement -

But Burke has also been giving the fashion industry a reality check with her Delta Burke Design clothing line that allows plus-sized women to look radiant in trendy clothing.

(more…)

Dear Terry,
It’s time you highlighted the benefits of German diesel cars and kept it front page for those less informed, which is about 90 percent of the U.S. population. Volkswagen is set to bring the Jetta sedan and wagon — which get almost 60 miles per gallon — back to the U.S. this year. Audi hopefully will bring the A4 to the U.S. in 2009, if it’s not a lie. (more…)

1. Surrender the policy back to the insurance company for its cash value.

2. Let the policy lapse, possibly making all your premium payments worthless.

But now there is a third option: selling the policy to an entity other than the insurance company that issued the policy in a transaction called a life settlement. The life settlement company continues paying the premiums and receives the death benefit when you die.

Life settlements grew out of viatical settlements, which bloomed in the 1980s as a way for AIDS patients and other terminally ill policyholders to tap into some cash before they died.

(more…)

Before she appeared on the screen in 1998’s “Permanent Midnight” and mesmerized us as a barkeep/beer mistress in 2000’s “Coyote Ugly,” Maria Bello had been contemplating a career in law. In fact, she co-authored a book with one of her law professors on peace and justice education.- advertisement -

Raised in suburban Philadelphia in a blue-collar family, the 41-year-old actress attended Catholic schools and graduated from Villanova University, where she studied political science. But it was a fortuitous choice of “acting” as an elective course that put on the course to Hollywood.

(more…)

Dear Terry,
My wife purchased a car in Virginia and drove it home. I was furious at what she paid. Can it be returned and the contract voided?
— William

Dear William,
Assuming your wife is an adult, she can make decisions and purchases independent of you. There are no grounds for returning the vehicle.

(more…)

Dear Terry,
Is there a three-day return policy on new leases where you can return the car to the dealer? What would be the costs?
— Joe

Dear Joe,
Sorry, but the car is yours the moment you drive off the lot. You can always buy your way out of the lease, but it will cost thousands of dollars.

(more…)

If you’ve tuned into the financial news lately, you know that oil prices have fallen dramatically in recent weeks. As I write this, the price of a gallon of regular is now about $3.70 on average nationwide.

That’s encouraging, but the fall has not happened as quickly as the rise. So consumers are right to remain concerned.

There’s another trend that may help consumers at the pump, and that’s a subtle turn away from premium-grade gasoline by automobile manufacturers — mostly Ford and General Motors — and an even greater shift among consumers.

(more…)

What’s the toughest money question? It’s the one that can’t be solved with a calculator, or even by a smart accountant.- advertisement -

In fact, you may need the combined insights of a family therapist, psychologist and financial planner to find the answer when someone asks: “I need money. Can you help?” You want to help. But should you? And if so, how and how much?

With millions struggling to hang on to their homes, and lenders tightening their standards, more people than ever are approaching family and friends for cash.

(more…)

6 straight months of job losses

Jobs losses for 6 consecutive months

The monthly employment report was released this morning, uncharacteristically on a Thursday due to the holiday tomorrow. What it showed was more of the same — the economy shedding jobs. The economy remains 0-for-2008 in the job growth department, with the economy posting job losses every month thus far. That makes six consecutive months of job losses.

For June, the initial glance shows a loss of 62,000 jobs. April was revised from a loss of 28,000 jobs to a loss of 67,000 jobs and May showed a revised 62,000 job cuts, instead of the 49,000 estimated last month. During the second quarter, the economy shed over 60,000 jobs per month.

(more…)

Dear Terry,
We bought a car over a month ago but got a call today telling us that financing was unavailable. Do we have to return the car or does the dealership have to finance? We put $1,000 down.
— Denise

Dear Denise,
You probably signed a conditional sales agreement with language that said if the dealership couldn’t get you financed, you’d have to return the car. The dealer will probably offer you a couple of options, which will likely involve putting more money down and getting a loan at a much higher loan rate. (more…)

Manufacturers trying to lure customers to buy new cars in an uncertain economy increasingly are turning to a tried-and-true marketing effort — low-cost leases.

With the average new car payment right around $500 a month, manufacturers are heavily advertising lease deals that run from about $175 to $250 a month on a wide range of vehicles.

In 2007, leases represented nearly 20 percent of all new vehicles sales. That percentage is expected to rise in 2008.

Here are some examples of lease deals now on the market:

(more…)

Dear Terry,
I was in desperate need of a car, so I purchased one on a Friday. The next day, I went to return the car to the dealership due to my high dissatisfaction with the vehicle and the way I was treated at the dealership.
This particular dealership is running ads and has posters stating that if you are not satisfied with the vehicle, you can get a 100 percent money-back guarantee, as long as the vehicle is returned within three days from date of purchase. They even told me this was the case. (more…)

Homeowners and lenders aren’t the only losers in foreclosure. Mortgage insurers have a lot at stake, too — and they do a variety of things to keep people in their houses.- advertisement -

In some cases, mortgage insurers kick in cash to help borrowers catch up on their house payments. One company doesn’t even ask for the money back.

Mortgage insurers do plenty besides writing checks, though. Their other foreclosure-prevention tactics include:

Partnering with credit counseling agencies to contact borrowers who have fallen behind on their payments.Stationing employees in lenders’ offices to speed up workouts.Calling borrowers directly to negotiate payment plans and modifications.

(more…)

Dear Terry,
I have a car loan under my name, but the title of the car is in someone else’s name. Is there a way to get that title back in my name, since that person has stopped repaying the loan?
— Acibrix

Dear Acibrix,
Unless the person signs over the vehicle to you — and the loan might have to be either repaid or renegotiated — there’s no easy way to get the title in your name.

Just because you guaranteed the loan doesn’t mean you have a clear right to claim ownership of the vehicle.

(more…)