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News, Events, Tips and Resources from The Jamisons

Car Loan Refinancing

by The Jamison Team on 09/06/14



When you bought your own car, you might not have found the best financing deal. You could have taken out your car financing through a car dealer at an interest rate that is possibly higher than other financers. This could be one of the reasons why you are currently paying way too much your current car loan. If your credit has not been in tip-top shape, you could be paying a higher interest rate as penalty. If so, then it’s high time you looked into refinancing.

Car loan refinancing is fast and easy. Once your car loan refinancing application has been approved, your current loan will be paid off by the new car finance company. You will be making payments at a lower interest rate than you have been previously paying. You’ll be surprised at how much you will be saving on car loan refinancing. Your savings could amount to hundreds, even thousands of dollars over the course of the loan, depending on how much your new interest rate is charged on your car loan refinancing deals.

Car loan refinancing may be a very promising way of saving you money but most people have not thought of refinancing their cars. You can say that car loan refinancing works in the same way as home refinance. In car loan refinancing, you pay off your current car loan with a refinancing car loan.  This time the loan comes from a different lender with a lower annual percentage rate, making your monthly car loan payments much less with interest rates that have dropped, while allowing you to pay off the balance of your car loan in a shorter span of time. Car loan refinancing has become a very popular trend because of the dropping interest rates. Use the money you save through your car loan refinancing to pay off credit card debt or accelerate your car loan payoff.

This is exactly the reason why people with bad credit who are paying a high APR need to apply for a car loan refinancing with low APR. Most bad credit borrowers can indeed refinance to a lower APR but many don't think to try because they were "programmed" or duped by the dealer into thinking they are stuck at the higher APR they have imposed.

It's very important to have a car loan refinancing early, because with car loans, the interest is mostly paid in the earlier payments.  The earlier your car loan refinancing is approved, the more money you save.  If you wait until the 4th year to refinance your car loan, your savings will be a lot less.

How much is the ideal APR for a car loan refinancing? If you didn’t get 0% to 3% APR car loan from a dealer or bank, you should consider a car loan refinancing. Even if you got a decent APR auto loan, consider having a car loan refinancing. Most online car loan refinancing sites have a car loan calculator.  You’ll be surprised at how much money you can save just by lowering your interest rate. Refinance your car loan today!

I hope that this information helps!

Kevin 

I’m Almost Ready To Buy A Home, What Should I Do?

by The Jamison Team on 09/03/14



Well, the first thing you should do before you shop for your new home is to get a copy of your credit report and credit score! You can obtain a copy of your credit report and score from one or all of the three credit bureaus:  TransUnion, P.O. Box 2000, Chester, PA. 19022,800-888-4213,www.transunion.com; Equifax, P.O. Box 740256, Atlanta, GA. 30374, 877-784-2528 ,www.equifax.com;  Experian, P.O. Box 2104, Allen, TX. 75013, 888-397-3742 ,www.experian.com.  You are entitled to receive a free credit report every year by law. Go to annualcreditreport.com to obtain your free reports.You may even consider ordering a three in one credit report to see what each credit bureau is reporting about you. 

You’ll want to review your credit report for any potential problems that will need to be cleared up before you start shopping for your home. You don’t want any surprises when you complete your home loan application. So, it’s important to be proactive about getting your credit report first!

After you have secured your credit report, the next step for you to consider when preparing to purchase a home is to get pre-approved for your home loan.  That’s right, get pre-approved for your home loan not pre-qualified, there’s a big difference! Getting pre-approved for your home loan means that you have obtained approval from your chosen lender to pay a certain amount for the home you are about to purchase.  

Basically, pre-approval means you already have your money for your home purchase and have the ability to negotiate a better deal with the seller because you have the funds to purchase quickly.  A pre-qualification doesn’t have much clout, because you have not secured approval of your home loan from a lender.  A pre-qualification is that you may qualify for a home loan.  So, do your research and secure  pre-approval of your home loan from a lender of your choice before you start shopping for your home!  

On the other hand, in addition to real estate agents having a good understanding of the approval process and what's required, they have establish relationships with lenders who offer an assortment of loan products. Contacting a real estate agent may be the best way to achieve a pre-approval and to find out about buyer programs and options.

As you look for your home, you may want to choose a buyer’s agent to represent you for your home purchase.  Remember, the sellers agent represents the seller and not you the buyer! That means that whatever offers you make or whatever you tell the sellers agent for the most part must be relayed to the seller.  For example, if you tell the sellers agent that you could pay up to $200,000 for a particular property but relay a bid of $180,000 directly to the agent for the seller, the agent usually has a duty to tell the seller that you would pay up to $200,000 for their property.  This would leave you with no room for further negotiations of the purchase price to the seller.  So, consider getting your own buyer’s agent that will represent your interests for the home you are trying to purchase.  Consider getting a buyer’s agent that will split or get a portion of the real estate commission for the home sell with the sellers agent so you’re not stuck paying a commission fee directly.

If you’re interested in purchasing a brand new home, it is recommended that you have your own buyer’s agent representing your own interests and not the agent who represents the builder! In most cases, you will find that the terms of the contract for the purchase of the new home presented by the builder’s agent, is one sided and may not protect your interest! So, get an agent that will represent you for your new home purchase.  You will find that you may have a better peace of mind during the purchase of your home.

Buying a home is probably the most expensive purchase you’ll make in your lifetime.  It’s also one of your bigger investments for your future.  So, it’s important that you do your research before you buy and take precautions that will make your home purchase easy going, less stressful and carefree! So go ahead, get started on your home purchase today!

Darlene Jamison is a licensed realtor with Remax Specialists in Philadelphia, Pennsylvania. To learn more about Darlene and her services please go to www.kevinanddarlene.com 

How to Consolidate Student Loans

by The Jamison Team on 08/20/14



A lot of graduating students have taken loans for their further studies and want to consolidate student loans. You may be one of those responsible individuals who is working towards repayment of your college loans.  But here the problem is how to pay the monthly installments, as you have to make monthly payments to many. You could be in a situation wherein you are not able to come up with enough cash to make payment to all lenders. No matter what the reason is for not being to pay up your student loan installment on time consolidation of student loans is a good idea and it will positively reduce your financial tensions.

Another important thing is how much do you know about consolidating student loans, do you have an idea what it actually is? There are many advantages but can be disadvantages also to consolidate student loans. You will some answers to your doubts in this article. Just go ahead and read on.

You will first of all like to know how student consolidation loan works. The answer is very straightforward. Once you have graduated from college you will have to start repaying all your student loans. When you move to consolidate student loan that is in other words you will add up all the loans you have taken from all different places, as one single loan and will have to pay to one lender only and that to at a low interest rate and you may get more time to pay up also. By consolidation of student loans, you will be able to repay your college loan with ease and little tension.  Maybe this can also save hundreds of dollars for you in the long run.

There are advantages as well as disadvantages in every situation and it goes without saying that it applies when you consolidate student loan also. There is a grace period and if you consolidate your loans during this time, as you will know grace period is the first 6-month following your graduation, and start repayment you will be able to seize the benefit of a lesser consolidation loan interest rate.  But on the flip side you will have to forgo the rest of the grace period and start the payment within the next sixty days.

But to overcome this there is a good strategy of consolidating student loans almost at the end of the grace period to take advantage of both. You can discuss this issue with your lender.

It is also very possible to extend the repayment time when you go for student consolidation loans. The repayment period can be extended up to a period of thirty years! But that primarily depends on your entire education loan debt. As a result your monthly payment sum will noticeably go down. This has its own drawback as the longer you take to repay your loan the more you will have to shell out. It’s entirely your own choice and also the situation you are in.


About Capital Gains

by The Jamison Team on 07/22/14



When you buy real estate in Pennsylvania and sell it for a higher price, the difference between the selling price and the purchase price is known as capital gain. In other words, profit from selling a property for a higher price is the capital gain on the property. Capital gains may be short-term or long-term.

Short-term gain: If you sell your property within 3 years after purchasing it, the gain is called short-term capital gain.

Long-term gain: When a gain occurs from selling a property after 3 years of its purchase, it is a long-term capital gain.

Calculation of capital gain: Capital gain is the difference between the selling price or the transfer price and the total cost of acquisition of the property.

The cost of acquisition includes purchase price of the property, cost incurred in registration of the real estate property in Pennsylvania, its repairs, storage expenses, etc. In short, all the expenses of capital nature are part of the cost of acquisition.

The transfer price includes commission or brokerage paid by the seller, registration fees, cost of stamp papers, traveling and litigation expenses incurred while transferring the  real estate property in Pennsylvania.

Capital gains tax:
Capital gains tax is charged on the gain that you make on selling a real estate for profit in Pennsylvania. It is calculated by subtracting the cost of acquisition of real estate from the transfer price of the property. The difference is added to your taxable income and charged according to the tax bracket you fall into.

The tax rates for short-term and long-term capital gains are often different. You must be alert of the tax structure of Pennsylvania to know what tax bracket you fall under and what tax rates are applicable for your capital gains.  

Criticism: It is often argued that capital gains tax results in double payment of taxes. The property’s value that is sold might have been included in the value of assets sold by you while calculating wealth tax. Thus, including capital gain in the income tax statement in the same year may result in double-payment of taxes.

For more read at http://taxfoundation.org/article/high-burden-state-and-federal-capital-gains-taxes


30 Year vs. 15 Year Mortgages

by The Jamison Team on 07/20/14



Discussions of mortgages often focus on interest rates, but there is a much more basic decision to make. Should you go with a 30 year mortgage term or a 15 year mortgage term?

30 Year vs. 15 Year Mortgages

Any discussion of mortgages tends to turn on two points. How can you qualify for the most money with the lowest payment? How can you get the lowest interest rate for the mortgage? While these are two important issues, there is an addition one that people fail to consider, resulting in significant wasted money.

The term of a mortgage is extremely critical for a couple of reason. First, it sets the length of the obligation you are undertaking. Second, it defines the amount of interest you are going to pay over the life of the loan. These are huge issues when it comes to building equity.

The longer the loan, the more total interest you are going to pay. The trade off, of course, is you are going to have smaller monthly payments the farther you stretch out the obligation. While this may sound like a good goal when you first get the mortgage, it can backfire on you in the long run.

Most people focus on interest rates as a way to save money on mortgages. This is a valid approach, but playing with the length of the loan is a better way to save money. If you can cut the payments in half by going with a shorter loan, you can save huge amounts on the total interest repaid to a lender.

The decision on the term of the loan is relatively simple, but entirely dependent upon your personal situation. There is no absolutely correct choice. First, you need to determine if you can comfortably afford the higher payments that come with a shorter term loan. In general, a 15 year mortgage will have payments 20 to 25 percent higher than a 30 year loan. Of course, you will pay the loan off faster, to wit, be building equity in the home quicker.

The modern mortgage industry has a variety of different term length products. When applying for a loan, take the time to evaluate the different terms to see if you can find a loan that is perfect for your situation.

Which mortgage term and type are you considering?

Darlene

Best Home Owner Insurance – What Is The Best?

by The Jamison Team on 07/02/14



The best homeowner insurance is the insurance that best meets your needs. The insurance shopper that takes the time to understand the basic elements of home insurance will have much more confidence and sense of satisfaction when making an insurance purchase. The homeowner policy has been around for a long time and so most of us have a general concept on how the policy works. The more you know about the market value of your home and the approximate cost to rebuild it the better off you will be when shopping for the homeowner policy.

This kind of knowledge is the foundation for determining what kind of policy to purchase. The age of your home has a direct bearing on the market value. The older homes built in the 1900’s have much lower market values today because most of them have depreciated. The market value for an older Victorian style home may be $50,000 but the actual cost to rebuild that home may be $200,000. The older homes that depreciate in market value are insured with actual cash value policies. They are often called market value policies. These policies will reimburse you for the market value of your home when there is a total loss. The market value policy is the best homeowner policy for the older home that has depreciated.

The replacement cost policy is better designed for newer homes or homes under construction. The replacement cost of a home and the market value are almost the same. Replacement cost is applied to the dwelling and most often to the contents of the dwelling. Replacement cost will repair or replace any loss with like kind and quality of materials without depreciation.

The best homeowner insurance for you will be determined by the age and market value of your home. The discounts for older and newer homes are the same. The protective device discount for deadbolt locks, smoke detectors, and fire extinguisher apply to both types of policies. Fire and burglar alarm systems are additional discounts that could be applied to both older and newer homes. Check our recommended insurers for more details.


Can Credit Counseling Really Help?

by The Jamison Team on 06/13/14



If you have high debt, and are in trouble, you have probably heard the term “credit counseling,” but do you understand what it is? Oftentimes this term is used in the same sentence as debt negotiation or debt settlement, but actually, it’s a completely different process. With credit counseling, you will actually work with a professional credit counselor to pay off your debt in lower, monthly payments that you can afford.

The people most likely to need credit counseling are those who are receiving troubling phone calls from bill collectors, or whose accounts have gone to collection agencies. If you think that you may benefit from using a service like this, please read on to find out the best way to work with a credit counseling company.

First, you’ll need to be able to find a good credit counseling company, and not fall victim to one of the many credit counseling scams that are out there. Start by avoiding any ads that promise you quick fixes for your credit report. There is no such thing. Instead, look for a reliable company that is accredited by Consumer Credit Counseling Services.

Next, you’ll have to meet with a professional credit counselor, and provide them with all of the details of your debt. Don’t be tempted to leave anything out because they will need the information in order to create a re-payment plan made just for you.

Now, you can sit back and allow your professional credit counselor to work for you. They will contact all of your creditors and inform them that you are trying to create a plan that will allow you pay off your debts. They will work with them all and coordinate a re-payment schedule that you can live with. Many times, they will be able to lower your interest rates in order to allow for lower payments.

Some credit counseling services offer a debt management system. What is it? Instead of having to keep up with all of the payments yourself, you will have the option of submitting one lump sum payment to the credit counseling service and they will do it for you. One note of caution here: there have been instances of a credit counseling services paying their client’s payments late, and if that happens, your credit report will suffer for it. Knowing that, be sure to check out the company thoroughly, by checking references, before signing up for their debt management program.

What will you pay for all of these services? A reputable Credit Counseling Service will only charge you a small fee, somewhere between nineteen and fourty dollars per month. If they are asking for alot of money up front, they may not have your best intests at heart. Be on the look out for potenial scams.

You should also be aware that working with a credit counseling service can do some damage to your credit report. However, the good does out weigh the bad. After all, it’s much easier to explain an honest attempt to get your finances in order than it is to explain a bankruptcy or a credit report full of charge-offs.

How to Avoid Buyer’s Remorse

by The Jamison Team on 05/21/14



Buying a home is euphoric and scary. On one hand, you are moving into a property you own. On the other, you are committing to the repayment of a lot of money.

How to Avoid Buyer’s Remorse

Buying a property can throw your emotions all over the place. First, you are ecstatic when the seller agrees to your offer. Soon thereafter, you start worrying about the price, potential problems and the commitment you have made to pay hundreds of thousands of dollars over the next 15, 25 or 30 years. It can be a monstrous rollercoaster for your emotions. You need not have buyer’s remorse.

The first issue giving rise to remorse is almost always the purchase price. If it makes you feel any better, the seller almost always thinks they should have asked for more. In truth, the agreed upon price is almost always pretty fair if you obtain a mortgage loan. The lender is not going to give you a loan well in excess of the value of the home, so you can rest assured you probably got a fair price. Yes, you may have paid $10,000 too much, but it is a relatively insignificant amount given the value of the property over time.

The second area of remorse is the payment obligation. Buying a home sounds great until you realize payments of $1,500 or $2,000 are due each month. What if you lose your job? What if someone gets sick? What if, what if, what if… Stop worrying. Life is full of risks and buying a home is a relatively minor one compared to other decisions we have to make. If you default on a mortgage, so what? Yes it is bad, but they are not going to put you in jail. Most successful business people fall on their faces five or ten times before hitting it big. In a worse case scenario, you can do the same.

Remorse can be an all encompassing thing. If you let it take hold of your emotions, you are going to suffer for no reason whatsoever. Remember, real estate is an excellent long term investment. If you keep the property in decent shape and hold on to the property for five or ten years, you will inevitably come out ahead.  Stop stressing out and enjoy your new home!


The Jamison Team!
Kevin & Darlene

Lease Options or Rent to Own?

by The Jamison Team on 05/02/14



Finding a rent-to-own house is one of the many ways someone with bad or no credit can buy  a house. You will often find them called names like lease/options, lease with option to buy, lease purchase, lease 2 purchase, rent with option to buy, rent to own, or rent to buy homes.

There are a few differences between rent-to-own and lease-option agreements, although many people use the terms interchangeably. With a rent to own (or rent to buy) home, the buyer makes an agreement with the owner that part or all of the rent money will go towards the down payment of the home, and at a certain date, perhaps 2-5 years in the future, the renter will purchase the home, using the money that was set aside as the down payment.

There is usually not much money put down in the beginning, outside of what would normally be needed for a rental home, so this is a good way to get into a home for little or no down payment.

Another advantage to a rent to buy situation is that if you compare how much rent money is applied monthly to the home price, even if it is only 25-50%, it will still be much more money paid on the principal of the house than if you had taken out a loan for it. If you look at how much money goes to the principal payment of a home with a typical mortgage loan, you will find that most of your mortgage payment in the beginning is just paying interest on the loan. A rent to own agreement, where the money goes directly to the payment of the home, could be saving you a lot of money in the long run.

With a lease-with-option-to-buy, a renter signs a lease agreement (often for a shorter period of time, like1-2 years, but it could be longer). The renter/buyer usually pays a sum in cash, usually non-refundable, to the owner in agreement to buy the house at a later date for the price agreed upon. The renter has the option or right to buy the home, so in the end they have a choice and can back out it they want. Some of the rent paid may or may not go towards the purchase price of the home.

This is a technique often used by real estate investors in periods when the interest rate is rising fast. This way they hope to buy the home at a lower interest rate on a later date. In the meantime, they will sublease the home to someone else, who will make the payments for them.

Again, the terms “lease option” and “rent to buy” are pretty much used interchangeably today, so check with the owner to find out exactly what terms they are offering. Or approach an owner with your own offer for renting to own.

If you are a renter who is tired of paying someone else’s mortgage and want to own your own home, this is one of many ways that you can buy a home. One of the drawbacks is that you will still need to purchase the home at a later date. This may be a problem if you have bad credit, because you may still need to qualify for a loan when it is time to purchase the home. If your credit can be repaired in several years, this may be a great way for you to get your home now, and good motivation to clean up your credit for the future.

If you have any questions or concerns about Lease Options or Rent to Own, please call Darlene us at 215-439-5626. 

How to Maintain Great Credit

by The Jamison Team on 04/28/14



The majority of people these days rely a little bit too much on their credit in order to keep them living in the lifestyle that they are accustomed to. For many people their entire life seems to be run on a line of credit. This is all good but because credit has become such a life line to so many people, they have to resort to loosing almost the entirety of their paychecks from work just to keep their credit going.
 
Most people are either living with credit debt that is so high it prevents them from getting a home or a car, and others are working just so that they pay their credit limits with credit cards so that they live off of those credit cards until their next paycheck. People who live like this condemn themselves to this repeated cycle of spending and credit for the majority of their lives.

 Since most people begin to establish their credit line when they are young, they are predisposed to see the credit as free money. That is of course; until they realize that eventually they will lose it all unless they pay off these ridiculously high limits. It is not uncommon for people with high credit limits to try to fix the balance of one credit card by getting another one and making the payments with the new cards and vice versa. This is a dangerous game to play that usually results in multiple credit debts that have to be fixed instead of one.

Using credit is meant to be a help to you and your life, and not your primary means of supporting yourself. When you decide to get credit, you must do so responsibly. Ideally, you would only use your credit cards in an emergency, but that is rarely the case anymore. Thanks to online shopping capabilities, people are spending more money than ever on their credit cards. Credit is a very tricky thing that can destroy your entire life because it can put you so deep in debt that you can’t get out of it.

If you are already deep in debt because of your credit, you should visit your local debt consolidator for help. If you are just starting out with your credit, the best advice that can be given to you is to be responsible and never spend more between paychecks than you can afford to pay back in full. As long as you keep up on paying your creditors on time and keep a copy of your credit report or score, you can easily maintain excellent credit and avoid bankruptcy.

Blog and stay tuned to our blog post for more information about credit and bankruptcy. Thanks for reading.

The Jamison Team
Kevin and Darlene