Tag Archives: equifax personal finance blog

Why Mortgage Credit Insurance Isn’t the Best for Your Carolina Real Estate

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Carolina real estate insurance

With continuing news of the foreclosure crisis in the U.S., many (city) homeowners are looking for ways to protect their homes and families if they should lose their jobs, become disabled or pass away. Mortgage credit insurance ads are tempting – the product promises to take care of your mortgage in the case of family crisis. But the Equifax Personal Finance Blog offers a warning in the recent article, “

Avoid the Scam of Mortgage Credit Insurance.”

Insurance expert Linda Rey, author of the article, gives two primary reasons mortgage credit insurance is not a preferred option for most homebuyers. First, it’s very expensive. Other insurance options exist that can help with your mortgage and other expenses if needed.

Second, mortgage credit insurance covers a declining liability. As you pay down your mortgage, your policy covers less and less. But your insurer will continue charging you the same high rate.

What other types of insurance does Rey recommend? Disability and term life insurance. She says they help in several different situations and can cover expenses ranging from housing, to medical to other debt obligations.

Rey warns against using a mortgage lender who tells you that mortgage credit insurance is a requirement for your mortgage. Shop around for a lender who doesn’t use practices such as this, which Rey considers “predatory.” The legitimate insurance you may be required to buy is Private Mortgage Insurance. PMI is required on most mortgage loans that are for more than 80 percent of the home’s value. It is a protection for the lender, not the borrower.

You’ll find more information on different types of insurance at the

Equifax Personal Finance Blog, a favorite source for credit, tax, insurance, retirement and real estate information.

Many Are Making Home Repairs, But Why?

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Home BuilderSo, you’re about to make repairs to  your home. Is it because you’re preventing further upkeep while you wait for the real estate market to change? Is it because you just can’t put it off any longer? Or are you preparing to sell your home in what you see as a shifting market?

The

Equifax Personal Finance Blog recently posted an article by real estate expert Ilyce Glink entitled “

Best Time of the Year to Start Big Home Improvement Projects.”  Glink reports on the ServiceMagic Q3 Remodeling and Repair Index, which shows that homeowners are focusing more on necessary repairs and less on remodeling and addition projects.

These repairs are coming after a period that Equifax has previously reported as a time focused on paying down consumer debt. In fact, 46 percent of the homeowners say they have put off making repairs for more than a year, but could wait no longer. The report shows an increase in repair and maintenance services on heating and furnace systems, septic tank and well services, roofing, and window installation.

While the ServiceMagic report seems to show people making repairs as they prepare to stay in their homes for awhile longer, sometimes real estate agents will have their sellers make repairs so homes will be more attractive to potential Continue reading →

Is It Time to Refinance Your Home Again?

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homeowner looking at houseEven if you refinanced recently, you may want to look at doing it again. Rates are at an all time historical low. Even reductions of a half-percent will save you thousands of dollars over the life of your loan. The Equifax Personal Finance Blog recently ran an article, “

Should I Refinance Now?” that will help you take a hard look at the numbers before you decide if another refinance is worth it. Real estate expert Ilyce Glink talks about her experience refinancing and her thought process as she considers refinancing for the second time in less than a year.

A major consideration is the cost of the refinance versus what you will save each month. To make the math easy, let’s say it would cost you $1,200 in closing costs, but you would save $100 a month. You break even in one year.

If you’ve refinanced in the last year, think about how much you’ve paid in interest since you refinanced. Because you pay more interest each year at the beginning of your loan, Glink says you’ve likely already paid thousands. If you refinance now, you’ll lose the year you’ve already paid. It will now take you a year longer to pay off your loan, plus it’s as if you’ve lost the money you’ve already paid in interest.

Glink’s plan to make this work out better is to put some of the monthly savings toward one extra mortgage payment each year. In her case, one extra payment per year will knock one year off of the loan. With the savings in interest, pre-payments on her loan, and subtracting the interest she “lost” in the last year, she figures that she still stands to save several thousand dollars.

How about you? To learn more about Glink’s thoughts on refinancing, visit the

Equifax Personal Finance Blog. She has links to follow, many more articles on real estate and finance, and an opportunity for you to ask questions.

Why You Should Cover Your Carolina Home With an Umbrella

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Happy family with umbrellaWhy should your home need an umbrella? Well, when litigation rains (and it seems to reign king in society these days), you’re going to want to make sure your home and all your assets are covered. An umbrella policy may be the extra coverage you need.

Especially for homes and families that have pools, dogs, teenagers, motorcycles, boats or RVs, lawsuits are the rain cloud that’s always hovering nearby. One accident, and you could end up paying with your current assets and your future earnings.

Homeowners insurance and auto insurance will cover some liability, but they have there limits. According to the

Equifax Personal Finance Blog, that’s where an umbrella policy steps in. It protects assets and income when the limits on your basic policies have been reached, plus it will step into some situations your other policies won’t touch.

The Equifax article, written by insurance expert Linda Rey, is titled “

Umbrella Insurance: The FAQs.”  It says that some things an umbrella policy might cover where you would otherwise be left on your own are overseas claims, non-business-related personal injury cases, and liabilities that occur off your property.

Umbrella policies are sold in increments of $1 million, and you may think you don’t need one because you simply don’t own that much stuff. However, when you add the value of your Carolina home with your investments, assets, future earnings potential and even your future pension income, you may be surprised at how much you have to lose.

The good news is that you may be able to get a discount on your policy. Try purchasing auto, home and umbrella insurance from one provider, and you should receive a cut in your premiums. And that doesn’t count what you will save on peace of mind.

For more details on umbrella policies and to make comments or ask questions of the experts, visit the

Equifax Personal Finance Blog.

Summer Camp: A Time of Bugs, Fun and Maybe Even Tax Breaks

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Summer Camp feaDepending on your income, you may be able to write off up to 35 percent of the cost of your child’s summer camp. As long as it’s day camp. As long as you haven’t already used up the maximum $3,000 you can take from the Child and Dependent Child Care Credit. As long as you use your child-free time to relax a little. (Okay…the IRS doesn’t require that one, but wouldn’t it be nice?)

“

Write Off  Your Child’s Summer Camp,”  a post on the

Equifax Personal Finance Blog by tax expert Eva Rosenberg, explains the good and bad news of the summer camp credit. You use IRS Form 2441 to claim the credit on your taxes. Unfortunately for many parents who have children in private school or daycare, the money is already spent in daycare and after school care charges long before summer arrives.

If you read the stipulations on Rosenberg’s post and find you’re eligible, she warns that you should request the camp provider’s tax ID number before you send the child away. Turns out, some of them don’t want to give it out because they’re not planning to report the income.

If you’re part of the sandwich generation providing care for both children and parents, be aware that the same tax credit could apply for the care of adults who are elderly or disabled. Learn more and ask your questions at the

Equifax Personal Finance Blog.