When a lender says you don’t qualify for a mortgage refinance, you may be able to fix what’s wrong or find another lender willing to step up.
The five things that most often stop a refinance from going through:
Your home is worth less than your current mortgage (also known as being underwater).
Your credit score is too low.
You can’t document your income.
The lender thinks you’re not making enough money to cover your bills.
Your home is listed for sale.
You can overcome some of those five issues fairly quickly, but others will take time.
Your owe more on your mortgage than your home is worth
You have three options:
1. Tell the lender you’ll bring cash to the closing table to create a downpayment on the new loan. For example, if your home is worth $100,000 and you owe $110,000 on your existing mortgage, bring the $10,000 difference between what you owe and what your house is worth. Plus, you’ll need to bring the minimum downpayment that the lender requires.
If you’re seeking an FHA loan, add another 3.5%, or $3,500 in this example, to meet FHA’s minimum 3.5% downpayment requirement, suggests finance columnist Jack Guttentag, a professor at the Wharton School. Some loan programs requre a 5% minimum downpayment.
Although the cash you bring to closing will help build equity, treat it as an expense when you calculate your refinancing costs, and when figuring if refinancing saves you money.
2. Double check the accuracy of the appraisal, and share anything concrete with your lender that the appraiser doesn’t know. Check to make sure the information in the appraisal is correct, such as square footage and number of bedrooms and bathrooms. Note amenities, such as a deck, an extra-large lot, and green improvements, and make sure they’re properly valued.
Guttentag cites the case of a home owner who knew an identical house across the street that sold for a low price because the home owners sold to a family member. The borrower got documentation of why the price was low, the lender ordered a new appraisal, and the refinance went through.
3. See if you qualify for the federal program Making Home Affordable, which helps home owners in your situation, or a program run by your mortgage lender.
Your credit score is too low
These days, the minimum credit score you’ll need to get a mortgage is higher than what was required just a few years ago. It’s possible that even if your credit score hasn’t fallen, it’s now too low for you to refinance the loan you already have.
In general, the lowest acceptable credit score is 620. To get the best rates, you need a 740 or higher, says Keith Gumbinger of HSH.com, one of the nation's largest publishers of mortgage loan information.
Today, lenders make you prove every dime of income you use to qualify for your refinance. To ensure consideration:
Report all your income to the IRS on your tax returns. You need a two-year income history to refinance.
Try applying for a mortgage at a local bank that holds onto the mortgage loans it makes instead of selling them. These banks can make their own rules about loans. Try credit unions, community banks, or lenders recommended by the REALTOR® who sold you your home.
Apply for a loan from the “Bank of Mom and Dad.” Cash-rich relatives might welcome the chance to earn 4% by giving you a mortgage.
Your lender says you’re not making enough money
Lenders look at your monthly expenses and compare that with your monthly income to come up with debt-to-income ratios. Improve yours by either lowering your debt or increasing your income. Strategies include:
Borrowing money from family members to pay down your debts.
Borrowing against your 401(k), if the advantages outweigh the risks for you. The cons are many, including the fact that you’ll pay a 10% early withdrawal penalty if you’re younger than 59 1/2. But it’s often a lower cost of borrowing. So do your homework.
Going with an FHA loan. FHA allows borrowers to qualify using the income of family members willing to co-sign your mortgage. The family member doesn’t have to own your house, but the person does have to meet the same underwriting requirements as the main borrower (that’s you) does.
Your home is listed for sale
Because it can take a year or more to sell your home in some areas, it’s possible you’ll want to pursue a refinance while your home is on the market. But lenders won’t grant a refinance mortgage while your home is listed for sale. Some lenders will give you a mortgage refinance the day after you take your house off the market, others make you wait 60 days. When you and your REALTOR® discuss taking your house off the market, ask her for a referral to a lender that won’t make you wait 60 days.
If these tactics all fail, try waiting until the latest refinance boom ends and lenders aren’t so busy. “When lenders are scrapping for business, they’re more likely to work with you or take you though manual underwriting,” Guttentag says.
By: Dona DeZube
Published: November 1, 2011
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Thursday, July 19, 2012
Sunday, June 10, 2012
Carpool Cost Savings: $650 - $1,000
The average American commutes to work 16 miles each way, and the average car gets under 23 mpg, which equates to about 7 gallons of gas per week to commute. At today's prices — $3.68 per gallon on average, as of this writing — that's about $25.75 a week, or nearly $1,300 a year!
Share your ride and the gas bill with just one friend, then, and you each save $650 a year. Fill the car, and you each save nearly $1,000.
And remember, the average car costs $9,000 to own, if you factor in gas, registration and insurance, maintenance and depreciation and other costs; if you halve or quarter the number of miles you drive, you'll also save on maintenance, and your car will last longer.
If you're looking for help getting started, consult with Divide the Ride, eRideShare, CarPool World or other Web-based tools designed to help like-minded commuters find each other.
Share your ride and the gas bill with just one friend, then, and you each save $650 a year. Fill the car, and you each save nearly $1,000.
And remember, the average car costs $9,000 to own, if you factor in gas, registration and insurance, maintenance and depreciation and other costs; if you halve or quarter the number of miles you drive, you'll also save on maintenance, and your car will last longer.
If you're looking for help getting started, consult with Divide the Ride, eRideShare, CarPool World or other Web-based tools designed to help like-minded commuters find each other.
Monday, May 28, 2012
Color Me Happy!
Colors have the power to change your mood and your outlook on life! Keep reading to find out how to color your home happy.
Over the years researches have attempted to understand and harness the true power of color in the home and workplace. Their findings have filtered their way into everything from popular wall color to throw pillows and furniture.
Our world is about visual experiences. We see displays at department stores and are drawn to items. We even buy items simply out of impulse because we like the way they look!
We use color to elicit moods in all sorts of social situations. A red cocktail dress can mean excitement and fun. A black gown can be somber or elegant. A beige room with neutral accents can create peace and calm.
When it comes to our homes it's too easy to play it safe or worse yet too easy to pick the wrong color for the wrong mood.
First, when it comes to design avoid competing patterns or colors. If your happy color is on the walls then be sure your rugs and furniture are happily neutral. Pick one focal point and play the room around it.
The queen of mood-lifting paint colors of course starts with yellow. It's charming, fun, and oh-so welcoming. Soft yellows can still be classic and relaxing, perfect for traditional decor, all while adding a touch of whimsy to your room. A soft buttercream or daffodil color is a great accent color for kitchens and baths, where you want spaces to appear light, bright, and clean.
If you are wanting to be really, really happy then consider turning up the volume on your yellow and going canary. Pick one accent wall and then accessorize with modern, clean-lined accents. Not bold enough to paint the walls yellow? Then incorporate yellow accents (pillow, throws, frames, and vases) throughout the space.
Pink is another cheerful hue that can work well with youthful spaces. Soft, baby pinks are wonderful for nursery spaces. Bolder, more claret rose color tints can be used in living rooms and outdoor spaces. This color trend can be a beautiful accent for Moroccan designs. Match up your pink with crisp, white molding or a fantastic area rug of muted colors.
The third color for a happy room is apricot. This sun-drenched color is the tasteful way to use orange. Apricot has a delightful way of reminding homeowners of summer days and of beautiful sunrises, both happy occasions!
Yellow, rose, and apricot. What wonderful ways to bring happiness to your home!
by Carla Hill
Our world is about visual experiences. We see displays at department stores and are drawn to items. We even buy items simply out of impulse because we like the way they look!
We use color to elicit moods in all sorts of social situations. A red cocktail dress can mean excitement and fun. A black gown can be somber or elegant. A beige room with neutral accents can create peace and calm.
When it comes to our homes it's too easy to play it safe or worse yet too easy to pick the wrong color for the wrong mood.
First, when it comes to design avoid competing patterns or colors. If your happy color is on the walls then be sure your rugs and furniture are happily neutral. Pick one focal point and play the room around it.
The queen of mood-lifting paint colors of course starts with yellow. It's charming, fun, and oh-so welcoming. Soft yellows can still be classic and relaxing, perfect for traditional decor, all while adding a touch of whimsy to your room. A soft buttercream or daffodil color is a great accent color for kitchens and baths, where you want spaces to appear light, bright, and clean.
If you are wanting to be really, really happy then consider turning up the volume on your yellow and going canary. Pick one accent wall and then accessorize with modern, clean-lined accents. Not bold enough to paint the walls yellow? Then incorporate yellow accents (pillow, throws, frames, and vases) throughout the space.
Pink is another cheerful hue that can work well with youthful spaces. Soft, baby pinks are wonderful for nursery spaces. Bolder, more claret rose color tints can be used in living rooms and outdoor spaces. This color trend can be a beautiful accent for Moroccan designs. Match up your pink with crisp, white molding or a fantastic area rug of muted colors.
The third color for a happy room is apricot. This sun-drenched color is the tasteful way to use orange. Apricot has a delightful way of reminding homeowners of summer days and of beautiful sunrises, both happy occasions!
Yellow, rose, and apricot. What wonderful ways to bring happiness to your home!
by Carla Hill
Sunday, May 6, 2012
How to Buy a Gas Grill
With models priced from $29 to $5000 and up outdoor gas grills offer convenience and ease-of-use to fit any budget.
Cost range: $29-$5,000 and up
Likely additional costs: Assembly, natural gas hookup or propane tank, cover
Average life span: 2-16 years
Sub-$50 range
Grills in the sub-$50 range are often of the tabletop propane variety. These units are constructed of thin painted sheet metal and cheaply fabricated components, all but guaranteeing a short lifespan. Brief 90-day warranties don't offer much of a safety net.
When it comes to power, these grills are positively entry level, says Marguerite. The single, 12,000 BTU burner is satisfactory for grilling hamburgers and hot dogs but will be far less successful at charring a thick porterhouse. Still, when it comes to portability, these grills have no equal. If you are looking for a highly mobile tailgating grill, look to this sector of the market.
$50-$150 range The biggest differences between a $50 gas grill and a $150 grill will be size and fuel source. Boasting cooking areas over twice that of their less expensive counterparts, these grills are the most economical options for families.
Models in this price range run on liquid propane stored in large refillable tanks (as opposed to the small disposable cylinders). Construction quality is moderate, featuring lightweight steel or aluminum bodies. However, the boost in price over the cheapest gas grill models yields an extra burner (albeit a low-powered one). Most are furnished with thin, steel-rod cooking grates that may warp from exposure to high temperatures, such as those from flare-ups.
$150-$350 range
Marguerite says buyers in this price range can expect to get "middle of the road" power, with burners putting out around 20,000 BTUs. Shoppers should expect a three- or four-burner grill, a roomy cooking surface, and perhaps even a storage cabinet and side burner—a separate burner used for boiling water or other independent cooking chores.
With widths of 20 to 24 inches and boasting around 400 square inches of grill surface, these units can simultaneously cook about two dozen burgers. Homeowners in cool climes who grill year round likely will lament the thin-body construction, says Marguerite. "These grills do a poor job of retaining heat in cold weather," he says. At this price range, expect less-expensive porcelain-coated steel cooking grates that tend to chip, rust and need replacing at a cost of $30 to $60.
$350-$600 range
Constructed of heavy cast-aluminum or thick-gauge steel, and utilizing high-quality stainless steel burners, these units are built to last. Parts that do fail will be covered by five- to 10-year warranties.
Averaging between 400 and 500 square inches of cook surface, these units are not substantially larger than those in the $150-$350 category. But they are constructed of heavy cast aluminum or thick-gauge steel and utilize multiple high-quality stainless steel burners. Heavy-duty castors and solid-built carts make it easy to move these grills from spot to spot.
Grills in this category can handle enough food for 15 to 18 people. Buyers are urged to select a burner configuration that appeals to them as some models arrange them front-to-back versus side-to-side, which can complicate indirect cooking.
$600-$1,500 range
Units starting around $600 feature burners that reach 40,000 BTUs, power that will make short work of even the largest barbecue payloads. Precision controls and even heat distribution give home cooks the ability to simultaneously sear, cook, and keep food warm. To step up to a 36-inch grill that approaches 900 square inches of cook space, a shopper should expect to spend at least $1,000.
Constructed of high-quality stainless steel throughout, these grills will weather years of use. These first-class rigs often include heavy cast-iron grates, side burners, under-grill storage, and even a rotisserie spit and motor. Buyers also get the peace of mind that comes with improved customer service and best-in-class warranties that range from 10 years on burners to 25 years on the body.
$1,500 to $5,000 range
When you spend upwards of $2,000 on a grill, you’ll get a host of features and quality construction. These appliances boast six or more top-of-the-line burners. Almost standard issue these days is an infrared sear burner that can reach temps topping 700 degrees.
Most include a rear-mounted rotisserie burner with motor, interior and exterior lighting, and even a spring-assisted lid for effortless opening. With the best grills also come the best warranties, typically covering most components for 10 to 25 years.
Propane vs. natural gas
Homeowners should decide before buying a grill whether they intend to fuel it with propane or natural gas, says Marguerite. While many grills can be converted for around $50, it is best to buy one factory engineered for one fuel type or the other.
Owners of built-in units typically choose natural gas as there are no tanks that need filling and the cost to operate is roughly half that of propane. According to the U.S. Department of Energy's most recent figures, propane costs $20.47 per million BTUs compared to natural gas's $12.18. Assuming a homeowner grilled once a week, he or she can expect to pay about $40 per year for propane and $24 for natural gas. Marguerite says that his company charges $150 plus $7 per foot to connect a grill to a natural gas line.
Suggested extras
A good-fitting cover will extend the life of any outdoor appliance. Expect to pay between $30 and $50. Owners of propane powered grills should consider purchasing a $20 back-up tank so that a fully charged spare is always on hand. A $20 gas gauge will take the guesswork out of estimating a tank's contents.
By: Douglas Trattner
Cost range: $29-$5,000 and up
Likely additional costs: Assembly, natural gas hookup or propane tank, cover
Average life span: 2-16 years
Sub-$50 range
Grills in the sub-$50 range are often of the tabletop propane variety. These units are constructed of thin painted sheet metal and cheaply fabricated components, all but guaranteeing a short lifespan. Brief 90-day warranties don't offer much of a safety net.
When it comes to power, these grills are positively entry level, says Marguerite. The single, 12,000 BTU burner is satisfactory for grilling hamburgers and hot dogs but will be far less successful at charring a thick porterhouse. Still, when it comes to portability, these grills have no equal. If you are looking for a highly mobile tailgating grill, look to this sector of the market.
$50-$150 range The biggest differences between a $50 gas grill and a $150 grill will be size and fuel source. Boasting cooking areas over twice that of their less expensive counterparts, these grills are the most economical options for families.
Models in this price range run on liquid propane stored in large refillable tanks (as opposed to the small disposable cylinders). Construction quality is moderate, featuring lightweight steel or aluminum bodies. However, the boost in price over the cheapest gas grill models yields an extra burner (albeit a low-powered one). Most are furnished with thin, steel-rod cooking grates that may warp from exposure to high temperatures, such as those from flare-ups.
$150-$350 range
Marguerite says buyers in this price range can expect to get "middle of the road" power, with burners putting out around 20,000 BTUs. Shoppers should expect a three- or four-burner grill, a roomy cooking surface, and perhaps even a storage cabinet and side burner—a separate burner used for boiling water or other independent cooking chores.
With widths of 20 to 24 inches and boasting around 400 square inches of grill surface, these units can simultaneously cook about two dozen burgers. Homeowners in cool climes who grill year round likely will lament the thin-body construction, says Marguerite. "These grills do a poor job of retaining heat in cold weather," he says. At this price range, expect less-expensive porcelain-coated steel cooking grates that tend to chip, rust and need replacing at a cost of $30 to $60.
$350-$600 range
Constructed of heavy cast-aluminum or thick-gauge steel, and utilizing high-quality stainless steel burners, these units are built to last. Parts that do fail will be covered by five- to 10-year warranties.
Averaging between 400 and 500 square inches of cook surface, these units are not substantially larger than those in the $150-$350 category. But they are constructed of heavy cast aluminum or thick-gauge steel and utilize multiple high-quality stainless steel burners. Heavy-duty castors and solid-built carts make it easy to move these grills from spot to spot.
Grills in this category can handle enough food for 15 to 18 people. Buyers are urged to select a burner configuration that appeals to them as some models arrange them front-to-back versus side-to-side, which can complicate indirect cooking.
$600-$1,500 range
Units starting around $600 feature burners that reach 40,000 BTUs, power that will make short work of even the largest barbecue payloads. Precision controls and even heat distribution give home cooks the ability to simultaneously sear, cook, and keep food warm. To step up to a 36-inch grill that approaches 900 square inches of cook space, a shopper should expect to spend at least $1,000.
Constructed of high-quality stainless steel throughout, these grills will weather years of use. These first-class rigs often include heavy cast-iron grates, side burners, under-grill storage, and even a rotisserie spit and motor. Buyers also get the peace of mind that comes with improved customer service and best-in-class warranties that range from 10 years on burners to 25 years on the body.
$1,500 to $5,000 range
When you spend upwards of $2,000 on a grill, you’ll get a host of features and quality construction. These appliances boast six or more top-of-the-line burners. Almost standard issue these days is an infrared sear burner that can reach temps topping 700 degrees.
Most include a rear-mounted rotisserie burner with motor, interior and exterior lighting, and even a spring-assisted lid for effortless opening. With the best grills also come the best warranties, typically covering most components for 10 to 25 years.
Propane vs. natural gas
Homeowners should decide before buying a grill whether they intend to fuel it with propane or natural gas, says Marguerite. While many grills can be converted for around $50, it is best to buy one factory engineered for one fuel type or the other.
Owners of built-in units typically choose natural gas as there are no tanks that need filling and the cost to operate is roughly half that of propane. According to the U.S. Department of Energy's most recent figures, propane costs $20.47 per million BTUs compared to natural gas's $12.18. Assuming a homeowner grilled once a week, he or she can expect to pay about $40 per year for propane and $24 for natural gas. Marguerite says that his company charges $150 plus $7 per foot to connect a grill to a natural gas line.
Suggested extras
A good-fitting cover will extend the life of any outdoor appliance. Expect to pay between $30 and $50. Owners of propane powered grills should consider purchasing a $20 back-up tank so that a fully charged spare is always on hand. A $20 gas gauge will take the guesswork out of estimating a tank's contents.
By: Douglas Trattner
Saturday, April 28, 2012
Flavorful Landscapes–It’s a Growing Trend
Nothing beats the flavor of a fresh-from-the-garden tomato; warmed by the sun, plucked right from the plant and eaten in the garden. And the good news, you don’t need much space. Many gardeners have and more will continue to grow food in containers or mixed in with their flowers, shrubs, and other ornamental plantings.
Save the sunniest spots in your landscape for tomatoes, peppers, eggplants, cucumbers and other vegetables where you eat the flowers or fruit. They produce their best and have the fewest disease problems when grown in eight to twelve hours of sunlight. Root crops such as beets, radishes, and carrots can get by with about a half of a day of direct sun and leafy crops like lettuce and spinach can still produce in a shady location with only 4 hour of sunlight.
Get your garden off to a good start. Use a quality potting mix when growing in containers. It should have good drainage and retain moisture. In the garden, prepare the soil before planting. Add several inches of compost, peat moss or other organic matter to the top 6 to 12 inches of soil. This improves drainage in heavy soils and increases water holding capacity for sandy or rocky soils. Add a slow release fertilizer like Milorganite to the soil or potting mix. This goof proof organic source of nitrogen meets the EPA Exceptional Quality standards and will help encourage growth without interfering with flowering and fruiting.
Jump start the season with the help of floating row covers. These polypropylene fabrics let air, light, and water through, while trapping the heat near the plants. The best part, you won’t need a hammer, nail, or other tools. Simply lay the fabric over your planting, leaving enough slack for the plants to grow and anchor the edges to the ground with stones, boards or other items.
Increase your harvest with intensive planting techniques. Succession planting, several plantings of short season crops in the same space, can double or triple your harvest. Interplant quick-to-mature crops like radishes and lettuce, in between longer maturing plantings of cabbage, tomatoes or eggplant. The short season vegetables will be ready to harvest just about the time the bigger plants are crowding them out.
Consider planting vegetables closer together in wider rows. You’ll waste less space for pathways, putting more room in plantings. Make sure each plant has enough space to grow and that you can reach all planted areas to weed and harvest
Provide proper care and get ready to harvest and enjoy a bountiful harvest from your own garden.
Gardening expert, TV host and author Melinda Myers has 30 years of horticulture experience and has written over 20 gardening books, including “Can’t Miss Small Space Gardening.” She hosts the nationally syndicated “Melinda’s Garden Moment” segments which air on TV and radio stations throughout the U.S. She is a columnist and contributing editor for “Birds & Blooms” magazine, hosted “The Plant Doctor” radio program for over 20 years as well as “Great Lakes Gardener” on PBS. Melinda has a master’s degree in horticulture, is a certified arborist, and was a horticulture instructor with tenure. Myers’ web site is www.melindamyers.com
By Melinda Myers
Save the sunniest spots in your landscape for tomatoes, peppers, eggplants, cucumbers and other vegetables where you eat the flowers or fruit. They produce their best and have the fewest disease problems when grown in eight to twelve hours of sunlight. Root crops such as beets, radishes, and carrots can get by with about a half of a day of direct sun and leafy crops like lettuce and spinach can still produce in a shady location with only 4 hour of sunlight.
Get your garden off to a good start. Use a quality potting mix when growing in containers. It should have good drainage and retain moisture. In the garden, prepare the soil before planting. Add several inches of compost, peat moss or other organic matter to the top 6 to 12 inches of soil. This improves drainage in heavy soils and increases water holding capacity for sandy or rocky soils. Add a slow release fertilizer like Milorganite to the soil or potting mix. This goof proof organic source of nitrogen meets the EPA Exceptional Quality standards and will help encourage growth without interfering with flowering and fruiting.
Jump start the season with the help of floating row covers. These polypropylene fabrics let air, light, and water through, while trapping the heat near the plants. The best part, you won’t need a hammer, nail, or other tools. Simply lay the fabric over your planting, leaving enough slack for the plants to grow and anchor the edges to the ground with stones, boards or other items.
Increase your harvest with intensive planting techniques. Succession planting, several plantings of short season crops in the same space, can double or triple your harvest. Interplant quick-to-mature crops like radishes and lettuce, in between longer maturing plantings of cabbage, tomatoes or eggplant. The short season vegetables will be ready to harvest just about the time the bigger plants are crowding them out.
Consider planting vegetables closer together in wider rows. You’ll waste less space for pathways, putting more room in plantings. Make sure each plant has enough space to grow and that you can reach all planted areas to weed and harvest
Provide proper care and get ready to harvest and enjoy a bountiful harvest from your own garden.
Gardening expert, TV host and author Melinda Myers has 30 years of horticulture experience and has written over 20 gardening books, including “Can’t Miss Small Space Gardening.” She hosts the nationally syndicated “Melinda’s Garden Moment” segments which air on TV and radio stations throughout the U.S. She is a columnist and contributing editor for “Birds & Blooms” magazine, hosted “The Plant Doctor” radio program for over 20 years as well as “Great Lakes Gardener” on PBS. Melinda has a master’s degree in horticulture, is a certified arborist, and was a horticulture instructor with tenure. Myers’ web site is www.melindamyers.com
By Melinda Myers
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