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Frederick, MD 21701
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March 18, 2010
RISMEDIA, March 18, 2010—Younger people are more than twice as likely as older age groups to have been turned down for loans, mortgages and credit cards within the last year, according to a new national survey by FindLaw.com, one of the most popular legal information websites.
The FindLaw.com survey found that more than one in five (22%) people between the ages of 18 and 34 say that they have been refused a mortgage, loan or credit card within the last year. That’s more than twice the percentage of any other age group, and they are four times more likely to say they’ve been turned down than people age 55 and up.
According to the FindLaw survey, people between the ages of 18 and 34 say that they have been turned down for the following within the last year:
Credit card – 15%
Home mortgage – 4%
Home equity loan – 4%
Car loan – 4%
Student loan – 4%
Mortgage refinance – 2%
Small-business loan – 2%
Home improvement loan – 1%
“Borrowing money–whether a mortgage, loan or even a credit card–often involves meeting strict standards set by the financial institution,” said Stephanie Rahlfs, an attorney and editor with FindLaw.com. “And it can be particularly difficult for younger people, who often have had less time and opportunity to establish a credit history, work history, etc. Monitoring your credit score, correcting any errors in your credit report, and building a good history of managing credit and loans can help increase the chances of being approved for a loan, mortgage or credit card down the road.”
For more information, visit www.findlaw.com.
March 15, 2010
March 13, 2010—According to the Federal Bureau of Investigation (FBI), mortgage fraud is an escalating problem. It is the fastest growing white collar crime in the U.S. The FBI estimates annual losses of $4 billion to $6 billion in mortgage-related fraud, and the numbers are expected to increase. While there are legitimate programs to help ailing homeowners, there are also many scams that capitalize on these programs. Money Management International (MMI) offers the following tips to avoid falling into a foreclosure trap:
-Talk to your mortgage lender first. If you think you are unable to make a payment, contact your lender right away. They may be able to help you identify options to bring your loan current.
-Don’t pay upfront fees. Someone asking you to pay an upfront fee in exchange for help should be a red flag that the person or company may not have your best interest at heart.
-Get promises in writing. Oral agreements relating to your home are usually not legally binding. Protect your rights with a written contract signed by the person making the promise.
-Make mortgage payments directly to your lender or mortgage servicer. Do not trust anyone else to make your mortgage payments for you.
-Be careful about transferring your title. Foreclosure scams often require you to sign ownership of your home over to a third party. Never sign over your deed without seeking legal advice first. Understand the terms of the deal you are making. By signing over your deed, you lose rights to your home and any equity.
For more information, visit www.moneymanagement.org.
March 12, 2010
Q: What is a hybrid loan?
A: Also called a fixed-period ARM, these crossbreed loans combine features of fixed-rate and adjustable-rate mortgages.
They start out with a fixed interest rate for a number of years – usually 3, 5, 7 or 10 years – and then convert to an ARM.
Initially, the interest rate for the fixed period of the loan is much lower than the rate on a fixed-rate, 30-year mortgage by about 1.5 percentage points. As a result, the hybrid allows borrowers to buy a lot more home than they can afford – but at greater risk.
The terms and fees for these loans vary widely and when the fixed-rate period expires, homeowners could end up paying considerably more than the current rate of interest.
Before considering a hybrid, pay close attention to the terms, fees, and prepayment penalties.
