Missed a Mortgage Payment? How to Ensure It Doesn’t Affect Your Credit Score

If you pay attention to your credit rating, you may be well aware that a single late payment reflected on your credit report can result in a decline in your scores.

In some cases, the decline can be rather significant, and you will have to work hard to make regular payments over a period of time to show that you remain creditworthy and to rebuild your credit score.

It is far better to avoid late payments altogether than to deal with the stress and ramifications of a late payment on your credit report. If you have already missed the due date on your mortgage loan, you may be wondering what you can do to prevent this late payment from showing up on your credit report.

Contact Your Mortgage Company Immediately

Initially, contact your mortgage company to make payment arrangements and to discuss the situation. In some cases, a mortgage company may be willing to work with you on structuring a new arrangement for the payment to be made or you may even have a surplus in your escrow account that could be applied toward the payment.

You can also determine when they will report your late payment to the credit bureaus and how much time you have before you absolutely need to make the payment to avoid credit ramifications.

Make Your Payment Before The Next One Is Due

Generally, lenders will report late payments when they are more than 30 days late. While you may be assessed a late fee after the initial grace period has expired, you may not have technical late payment in terms of what credit reporting bureaus consider to be late. Generally, if you make your payment before the next mortgage payment is due, your late payment will not show up as a late payment with the bureaus. However, you do want to verify this with your mortgage company and work with them to bring your account current.

A late payment on a mortgage can have a substantial and negative impact on your credit rating, and it can take months or even years to restore your scores to their previous level. Rather than go through the effort to try to improve your score after the fact, it is best to avoid the late payment altogether. While you may have already missed a payment and may be required to pay a late fee, it may not be too late to avoid having this event reflected on your credit report.

Contact your lender today to learn more about your options and to make your payment.

What Factors Determine Your Home’s Resale Value? Let’s Take a Look

There are several factors that will help you determine the value of your home when you want to sell it. Location, condition, layout, upgrades, and events relating to your home are all important when selling your home.

It’s All About Location
Anyone in real estate will tell you location, location, location is the first thing to consider when buying real estate. If your home is on a busy street, it’s going to be harder to sell unless someone is looking for that exact location.

If a buyer is looking to have a business inside the home, then having more exposure could be important. However, for a family, the most sought after location is in a cul-de-sac or dead-end street where traffic is kept to a minimum.

Your Home’s Condition Is Important
The home you are selling must be in excellent condition to ensure you get top dollar. Buyers are primarily looking for a home that is in move-in condition. If it needs painting, new flooring, a new roof, or new plumbing, it isn’t as desirable as a home that doesn’t need any work. Newer homes typically are in better condition than older homes, unless they have been well-maintained.

Your Home’s Layout
Is your floorplan functional? Most buyers prefer homes with open floorplans and ample kitchens, living areas, and bathrooms. Closets are also important as everyone needs storage space. The number of bedrooms a home has can also be important. Two bedrooms aren’t as popular or functional as three or four bedrooms. It’s also nice to have a flex room that can be a study, exercise room, or a formal dining room if need be. If a smaller home is well-designed, it can be easier to resale than a larger home.

Upgrades And Renovations
If you have an older home, but have upgraded the kitchen and bathrooms, then your home will be easier to sell. Updated appliances can also be a big plus when selling a home.

Natural Disasters And Other Events
If your home has been flooded, been through a fire, or damaged from wind or a storm, then that may cause the value to be less. If a buyer happens to talk to a neighbor who tells them a negative story, that may spook a buyer and cause them to look elsewhere.

3 Easy Ways to Put Aside a Bit of Extra Cash So You Can Pay off Your Mortgage Faster

If your personal budget is similar to many other people’s budgets, your home mortgage payment is by
far the largest expense that you pay for each month. In fact, this payment may easily account for 20 or 25 percent or more of your take-home income. Understandably, you may be focused on trying to pay this expense off early. By focusing on this payment, you can build equity and may be able to achieve financial security more quickly. You simply have to find a way to put aside a bit of extra cash regularly so that you can make extra payments, and there are few easy ways that you can consider.


Use Your Tax Refund

First, if you are one of the many taxpayers who receives a refund each year, consider setting aside some or all of this refund to reduce your outstanding mortgage balance. Some taxpayers may have such a sizable refund that it can account for two or more mortgage payments each year. However, even a few hundred dollars extra put toward your principal balance will save you a considerable amount of money in interest charges over time and will have a wonderful effect on your balance.

Earmark Your Annual Bonus

If you are lucky enough to receive an annual bonus each year, you may consider using this to pay down your principal balance. While you may usually spend this money on extra holiday gifts or just add it to your spending cash, you can benefit more substantially when you contribute it to your effort to pay down your mortgage.

Use An Automated Draft To Create a Fund

Another great idea that will work well for all individuals is to create an automated draft from your checking account each month. You may set aside the funds in a special account, and you can make an extra mortgage payment from this account periodically. Another idea is to set up auto payments for your mortgage that are higher than the amount due. For example, you may establish auto payments that are $50 or $100 more than your scheduled payments.

Paying off your mortgage earlier can be a life changing event for you. Simply imagine how different your life would be if you were not responsible for this payment each month. The fact is that this could be your reality sooner than you think if you follow these tips. For the best results, apply two or even all three tips to your efforts.

Saving Up for Your First Home? Our Guide to Finding Ways to Save Your Down Payment Faster

If your goal is to purchase a home, you may find that it’s challenging to save up enough money for your down payment. While this is something that many first time home buyers struggle with, it is by no means insurmountable. By making a few simple changes you will be able to accumulate the funds you need for your down payment.

Keep Track Of Your Spending
One of the reasons why it can be difficult to save money is that you aren’t even sure of where your money is going. While you may be aware of major expenses such as rent, car payments and utilities, it’s easy to lose track of many of the smaller bills and impulse purchases. If you aren’t keeping a budget, you should begin as soon as possible. Software programs and apps such as Mint.com can make this simple.

Consider If You Have Anything To Sell
You may be able to raise some quick cash by selling some personal belongings. Don’t part with something that will cause you regrets, such as a precious family heirloom. However, if you’re like many people, you probably have lots of items you no longer need. In addition to holding a garage sale, you could sell items such as jewelry, electronics, art or almost anything on eBay.

Refinance Credit Cards
Refinancing credit cards or any type of debt can help you save money on monthly bills. Balance transfers can often give you a more advantageous rate with credit cards. If you have a car loan, you may be able to find better terms with a different lender.

Find Another Source Of Income
In addition to finding ways to cut back on your spending, taking in some extra money every week can make it much easier to save up for that down payment. Perhaps you or your spouse could find time for a part time job. You might also consider starting a part time business, such as an online store that can be managed from home.

If you are creative about it, you can probably find many ways to save up for your down payment. You should also do plenty of shopping around when it comes to finding the best deal on a mortgage for your first home. Consult with a qualified mortgage professional to get an idea of what you can realistically afford.

Freelancing in 2015? Three Tips for How to Secure a Mortgage if You’re a Self-Employed Entrepreneur

If you are self-employed, either as a freelancer or as the owner of your own business, your income can fluctuate greatly from year to year. That can make it difficult to get approved for a mortgage, although there are some things you can do to improve your chances. Here are three tips for securing a mortgage if you are self-employed.

Make Sure Your Credit Score Is In Good Shape

While your ability to pay back a mortgage is the most important factor in approval, your credit score is a close second, and that goes for every borrower, not just those who are self-employed. If you have a credit score in the high range — something above 750 or 760 — it will help you get approved for a mortgage. To boost your score, make sure you pay all bills on time, pay down your debt levels and don’t make any new big purchases or apply for new credit soon before you apply for a mortgage.

Have a Large Down Payment

The more money a bank lends you to buy a house, the more risk it is taking in that the money won’t be paid back. If you are self-employed and considered a higher risk to begin with, one way you can alleviate some of that risk is to be able to put down a large amount of money. Putting down 20 percent is standard for a conventional loan, and you should be willing to contribute at least that much. Putting down at least 20 percent also will save you money in the long run, because you won’t have to pay for mortgage insurance and you will pay less in finance charges over the life of the loan.

Have Significant Assets

One way to put a lender at ease about your ability to pay for a mortgage is to have significant reserves in the form of assets. If you have large amounts of money in regular savings, brokerage and retirement accounts, it offers a reserve for you to tap should your income take a dive. Other forms of property, such as personal and business property that’s paid off and has value, also help.
If you are self-employed and are thinking about buying a home, contact a mortgage professional to discuss your situation and to see if you will be able to qualify for a home loan.

Are You Ready to Make the Leap into Home Ownership? Here’s How You Can Tell

Are you ready to make that leap from living at home or renting to owning a home of your own? While everyone moves at their own pace, here are some signs that you can use to determine if it is time to own your own home. Let’s take a look at some of the reasons you can use to justify your decision.

Are You Sticking Around?

If you plan on moving soon for a job or think that you won’t be in town much longer, it may be better to rent. However, if you are thinking about living in the same town or within the same county for years to come, it is time to put down roots.
The stability that comes with home ownership may make you more prepared for a marriage and/or a family if that is something that you want. This stability may make you more attractive if you are single and searching for a long-term relationship.

Do You Have a Steady Job?

Those who have a steady job and know that they have a stable salary may want to make the move to home ownership. As long as there aren’t any other major debts eating into your income, you can probably handle a mortgage and other costs associated with home ownership.
The equity that you build in your home can help you build wealth for the future if and when you want to retire. Your home may also make a great rental property in the future, which can help you diversify your portfolio and keep you solvent for years to come.

You Are Spending More Time Watching Television Shows Related to Home Ownership

You may have caught yourself recently watching shows revolving around people or couples who are looking for homes. You may also be watching programs dedicated to giving tips as to how you can upgrade your home. If you watch these shows frequently, it may be a sign that you are ready to move out on your own and take on the exciting challenge of being a homeowner.

Are you ready to be a homeowner in the near future? Only you can say for sure if it is time to make that leap. However, those who are looking for a long-term housing solution may be ready to make that move. For more information, it may be worthwhile to talk to a mortgage professional to see what you can

Tax Time is Upon Us: Learn About Tax Deductions and How to Write off Your Home Mortgage Interest

Much to the chagrin of taxpayers all over the country, the tax-filing season begins in January and runs through April 15 of each year.

As the current tax season approaches, it presents an opportunity to help tax-payers clarify their responsibilities and remind them of certain important tax deductions that may be available.

Filing Responsibilities

Every person in the United States is required to file their tax returns by April 15 so long as they have some form of qualifying income. Based on filing status, income and available deductions, tax-payers must file a 1040EZ, 1040A or 1040 (long-form for itemized deductions).

Qualifying income is generally defined as, but not limited to wages, commissions, miscellaneous income (rental, interest), investment income and alimony. These forms of income are reported on a periodic basis to the IRS and State governments by employers, banks, contract employers and/or other responsible parties.
The most common tax receipts that must be sent to tax-payers by January 31 are W-2s and 1099-Misc forms.

Calculating Taxes

While the IRS requires individuals to report all forms of income, they also allow certain living costs to be used as deductions to offset income in order to arrive at a “taxable income” number on which tax liabilities are calculated.
If a tax-payer’s deductions fail to exceed the combined statutory standard deduction (2014: $6,200 if filing single, $12,400 if filing as married couple, $9,100 if filing Head of Household) and personal exemption of $3,950 per dependent, they will want to file the 1040EZ or 1040A. If itemized deductions exceed this number, the 1040 becomes preferable.

Mortgage Interest Deduction

For a majority of tax-payers, the largest tax deduction available is usually mortgage interest paid on secured debt where the primary residence and in some cases second homes or rental property serve as collateral. In most of these cases, all interest paid during the year is deductible.
If the mortgages are large enough, the total interest paid will typically push the tax-payer into position to itemize deductions. It is important for tax-payers to read the rules related to mortgage interest deductions as they tend to be somewhat complicated.

Other Important Deductions to Consider

Once a tax-payer qualifies to itemize deductions, many other living expenses become deductible. Other prominent deductions include property taxes, charitable contributions, childcare costs, qualified moving expenses, certain work related expenses and certain medical expenses.
Prior to using any deduction, it is incumbent on the tax-payer to review deduction guidelines in order to determine applicability.