Between 2004 and 2005, mortgage rates dropped to around 5% – a record low. Many people, including mortgage professionals, felt that rates couldn’t go any lower. This triggered a flood of new home buyers and many existing homeowners refinanced their home loans to take advantage of these low rates. Although rates gradually increased during the financial crisis of the late-2000s, this increase was short-lived. As of 2012, mortgage rates have dipped to a new all-time low, with rates on purchases and refinances below 4%.

Reasons for Low Mortgage Rates

Economic conditions in the world and the United States directly affect mortgage rates. As a rule, when the economy is good, mortgage rates increase. When the economy is bad, mortgage rates decrease. A shaky economy moves many consumers to save their money. They might shop less, take fewer vacations and postpone large purchases (such as buying a home) until their confidence in the economy increases. Unemployment and pay cuts are also typical of a bad economy. All these factors contribute to fewer mortgage applications and a high inventory of homes.

A slow or stagnant housing market not only affects mortgage lenders, but also drives down property values. To keep the mortgage industry active during a poor economy, the Federal Reserve often lowers home mortgage rates. Lower rates result in lower home loan payments, and this factor alone entices many to consider homeownership or refinancing. And with lower rates and payments, ownership becomes a reality for those who take pay cuts after a layoff or job loss.

How to Benefit from Low Mortgage Rates

Reduced home loan rates aren’t permanent. As the economy begins to show signs of improvement, rates will gradually increase. If you’ve ever considered buying a home, now is the time to jump into ownership. Low mortgage rates increase your purchasing power, wherein you can afford a larger mortgage for less. And if you’re already a homeowner, refinancing to a lower interest rate can reduce your home loan payment and increase your monthly savings.

But low mortgage rates aren’t available to everyone. To benefit from these rates, you must meet the qualifications for a home loan. Requirements vary by home loan program. You need a good credit score – a 680 minimum for conventional mortgages and a 620 minimum for an FHA. In addition, you must be able to document your income with tax returns or paycheck stubs. After a review of your credit report, income and assets, a lender will decide whether you meet the qualifications for a new purchase or a refinance.

Smart financial habits begin at home, and if you want to make a positive impact on your child’s financial future, educate him on how to save his money.

Here are six tips to teach your kids about saving.

1. Give weekly allowances. To educate your child on managing money and saving, start by giving him a weekly allowance. It doesn’t have to be a lot – perhaps $10 a week.

2. Set up jars to encourage savings. If your child has been asking for a new toy or electronic, rather than buy the item for your child, encourage him to save for the purchase. Get an empty jar. Place a label on the jar and write the name of the item that your child wants. After receiving his allowance each week, have your child place some of his money in this jar. The money saved will go toward the purchase.

3. Reward your child for his efforts. Saving is challenging for kids. Acknowledge your child’s effort and offer a saving’s bonus. For example, if your child diligently saves each week and doesn’t touch his savings jar, you can add a few dollars to the jar to help him reach his goal.

4. Match his savings. Realistically, it can take awhile for your child to save for a large purchase. To avoid discouragement, agree to match your child’s contribution. If you child saves $30, agree to kick in the additional $30 to purchase a $60 item.

5. Encourage shopping around. Rather than buy the first item he sees, show your child how to find coupons, look for sales and compare prices. Purchase a newspaper and have him browse the different sales circulars, or take him to two or three retail stores to research different prices.

6. Set a good example. Your example can provide the biggest money lesson for your child. If you spend frivolously and forget to save your money, your child will take note and repeat your bad habits. Create a money jar or envelope system for yourself. You can place weekly funds for groceries, gas, recreation and entertainment in these jars or envelopes.

1. Start fresh and apply for new credit. If the bankruptcy eliminated all your credit card balances and you don’t have other types of debt, apply for a secured credit card or a credit card for bad credit and start rebuilding your credit history. The sooner you jump back into the credit world, the sooner you can repair any damage and increase your credit score.

   

2. Pay your bills bills on time. You don’t have to discharge all your debts in the bankruptcy. If you have debts remaining after your discharge or if you applied for new credit after the bankruptcy, always, always, always pay your bills on time. A bankruptcy is a clean slate, and if you want to buy a house, you have to demonstrate your ability to manage debt. On-time payments alone can single-handedly improve your credit score after bankruptcy and help you qualify for a mortgage.
3. Avoid high debts. The bankruptcy was likely triggered by uncontrolled spending and excessive debts. Learn from your mistakes and do not accumulate huge debts. Pay off credit card balances in full each month. This keeps your financial life simple. Plus, the wider the gap between your credit limit and your balances, the higher your FICO score.
4. Take your time. Don’t jump into homeownership right away. The wait period for a mortgage post-bankruptcy is 24 to 48 months, but this doesn’t suggest applying for a mortgage as soon as you hit the two-year mark. Lenders will base your interest rate on your credit score at the time that you apply, and if you haven’t fully recovered from the bankruptcy, this can trigger higher rates and a higher payment. You can get approved for a mortgage with a credit score as low as 620, but for the best rates, you need a score of at least 740.
5. Save as much money as possible. It’s more expensive to buy a home post-bankruptcy. The more cash on-hand for the purchase, the better. A down payment of at least 20% can convince a lender to approve your mortgage application, as well as help you negotiate a lower interest rate. Understandably, 20% down is a bit much in some housing markets. Aim for a down payment between 5% and 10%.
6. Shop around for the best rates. Mortgage lenders vary, and even if you’ve maintained a good credit record post-bankruptcy, the fact that you filed bankruptcy may prompt higher rates from some lenders. Don’t take the first mortgage offer you receive. Meet with two or three lenders, get a free quote and select the fairest, cheapest mortgage deal.

The opportunity to attend college and defer payments is a huge benefit and enables many to receive a higher education. But while student loans are a major plus, they often result in hefty debt after graduation. Student loan lenders are accommodating and they offer long repayment terms and low monthly payments. But if you’re looking for a way to eliminate student loan debt as quickly as possible, here are a few suggestions.

1. Minimize expenses after college

There is no rule that says you have to buy a house and a brand new car after graduating and landing a job. If you want to eliminate your student debt as fast as possible, put off new purchases and keep monthly debt payments to a minimum. Keep your old car, share a space with a roommate or move back home for a bit. You can save a little cash and put the savings toward your student loan debt.

2. Get the lowest interest rate possible

Paying a high interest rate on a student loan can prolong your debt. This is because each payment includes a principal payment and an interest rate. The more you pay in interest, the less money your lender applies to the principal. Talk to your student loan lender and ask for a lower interest rate. This shouldn’t be hard if you have a good credit score and a good payment history. If you can’t negotiate a lower rate with your current lender, start shopping for a new lender and consolidate your balances with a low-rate consolidation loan.

3. Make bi-weekly payments

You can pay less interest on your student loans and reduce your balance faster with bi-weekly payments. Take your total minimum loan payment, divide this number by two, and then make half payments every two weeks. This method works because less interest accumulates between payments. Plus, bi-weekly payments result in an extra payment each year.

4. Ask about loan forgiveness

Call up your student loan provider and inquire about loan forgiveness programs. These programs aren’t available to all graduates, but if you meet the criteria for a loan forgiveness program, you can have all or a percentage of your student loan debt eliminated. Circumstances that can qualify you for loan forgiveness include volunteering work with the Peace Corps, AmeriCorps, military service, teaching in a low-income school district, as well as providing medical or legal services in a non-profit setting.

5. Discharge student loan debt

It is very difficult to discharge student loan debt in a bankruptcy, and oftentimes, a bankruptcy judge will not eliminate this debt. Of course, there are exceptions. If you can prove that your student loan debt poses a significant financial hardship, wherein you’re unable to afford shelter, food and other basic necessities, a judge may include this debt in your discharge.

Many people don’t know the first thing about credit scores and credit reports. Credit 101 isn’t taught in many schools and most credit education results from trial and error. But even if you don’t have a strong knowledge of how credit works, you can increase your knowledge and take steps to ensure a strong credit report and history. Credit reports are like school report cards and they highlight positive and negative credit habits. The contents of your report determine credit approvals, insurance rates and interest rates. The better your credit habits, the better your credit report.

Learn four credit report killers and then do everything in your powers to avoid these costly mistakes.

1. Late Payments

It matters when your creditors receive your payments and if you develop a habit of late payments, you’ll not only destroy your credit score, but trigger negative remarks on your credit report. Creditors aren’t quick to report lateness to the bureaus. In fact, creditors only report lateness when payments are 30 days past due. Once a late payment hits your credit report, it stays for several years. Too many late payments in a two-year span can result in loan and credit rejections.

2. Huge Balances

Paying only the minimum each month will keep creditors off your back. But high balances does nothing to help your credit score. If applying for a mortgage, auto loan or another type of credit, these creditors or lenders will check your credit report to review your current balances. High balances will raise red flags and turn off lenders. Start paying more than your minimum each month and establish a plan to knock down balances. As a good credit habit, try to keep your balances below 30% of your credit limit.

3. Defaulting

Defaults are sometimes inevitable. You may lose your job or face other hardships that make it difficult to pay your mortgage or auto loan. But before giving into a bankruptcy or allowing your accounts to go to collections, do everything humanly possible to avoid defaults. Foreclosures, repossessions, collection accounts, judgments and bankruptcies stay on your credit report for seven to 10 years and significantly affect your ability to get new credit. But if you work with your creditors, you may be able to settle your debts, consolidate to a lower interest rate or work out a new payment agreement to keep your accounts in good standing.

4. Reporting Mistakes

It only take one serious reporting mistake to ruin your credit report and score. Order your credit report from the three credit reporting bureaus or Annualcreditreport.com each year, and check your reports for errors.

1. Debt-to-income ratio

Any cosigned loan will appear on your credit report and this additional line of credit will affect your debt-to-income ratio (DTI). This is the percentage of your income that goes toward debt payments. Even if the primary borrower pays the monthly bill and you never submit a payment to the bank, the fact that you have this loan in your name increases your DTI.

Higher debt-to-income ratios can limit your purchasing power when applying for your own mortgage or auto loan. Before cosigning a loan for anyone, do the math. Add your total minimum debt payments (including the monthly payment on the cosigned loan) and divide this figure by your monthly income. This figure is your percentage of debt in relation to your income. As a rule, your debt-to-income ratio should not exceed 36 percent.

2. Cosigner Release Clause

If you decide to cosign a loan for someone, look for a cosigner release clause in your agreement or ask the lender to include this clause in the agreement. Many lenders will not include this clause, but it doesn’t hurt to ask. This clause gives you an out, wherein the lender agrees to take your name off the loan once the primary borrower makes a certain number of timely payments. Thus, you’re not bound to the loan for the entire repayment term.

3. Payment Record of the Primary Borrower

Never cosign a loan if you doubt the primary borrower’s willingness to make his or her payments on time. Cosigning puts your credit at risk and you need to look at the other person’s track record. It’s one thing to cosign for someone with no prior credit history. But if this individual has a long history of late payments, collection accounts, judgments and other credit problems, there’s a chance that this person will continue on this path and default on the loan.

Dental Assistant

Working along side a dentist is a hot career that is growing in 2012. Do you want to work beside a dentist, make people smile and feel comfortable and help the dentist with his instruments to clean teeth and fill cavities? Being a dental assistant can help you achieve this goal. You can become a dental assistant by getting a degree or certificate in dental assisting.

This career is supposed to grow by 30% by the year 2018. This is great for those wanting a hot career that will be in even bigger demand in the next few years. What is better is that dental assistants make over $34,000 per year.

Physical Therapy Assistant

Many people suffer from some kind of pain and a physical therapist assistant can help ease their pain. Physical therapy assistants help teach patients exercises to do from home, help ease patients pain and are the physical therapists right hand men or women. This career is supposed to grow by 33% by the year 2018. This career is in high demand right now. Being a physical therapy assistant can help other people with their pain and help yourself by choosing a hot career that is in high demand now and up to the year 2018 at least.

Medical Assistants

Want to help people improve their health? You can by becoming a medical assistant. Medical Assistants can work hands on in hospitals, small clinics and doctors offices. Having this type of job means you can take patients vitals, fill out insurance forms and keep medical records. This hot career will grow fast by the year 2018 by 34%. Medical assistants can make more than $29,000 per year.

Computer Software Engineer

Being a computer software engineer is in high demand right now and will continue to grow at least until the year 2018. This hot career has to do with technology and everyone knows technology is here to stay. As new web browsers come out and new computers, this job will always be in high demand. The one thing you need to remember if you want to become a computer software engineer is that you need a lot of education. You will need a bachelor’s degree in computer science.

Credit Counselor

With the economy the way it is today why wouldn’t a credit counseling be one of the hottest career paths in the US? The average American has over $8,000 in credit card debt and the average interest that they pay on these credit cards is in the double digits, if you thrown in the 9% unemployment rate into the mix that is a recipe for trouble. No wonder this has been one of the fastest growing careers in 2012, in 2012 there were approximately a little over 30,000 credit counselors but this number will grow exponentially as individuals need help setting up a budget, getting out of debt and finding an effective way to deal with aggressive creditors and collection agencies.

This hot and in high demand career is expected to grow by 20% by the year of 2018. The percentage might get higher, however.

To become a credit counselor the process is fairly simple, many organizations that offer credit counseling and some sort of debt services will give on the job training but it’s best to get a credit counseling certification (check out the link).

With these 5 hot careers in high demand you should definitely find the career you want. These are just five of them but there are more. Getting into one of these hot careers will ensure a great future for you and your family.

Surely one of these hot careers appeals to you for one reason or another. Whether it be stability or a great future in the works, you are sure to have a great life with one of these awesome careers.

1. 2012 Mitsubishi i-MiEV

There are a few benefits to buying this car. Here they are:

•  112 MPG equivalent
•  Rear wheel drive subcompact car
•  Electric type car
•  $540 for fuel cost each year
•  purchase price is $29,125

Although Mitsubishi has become one of the least successful car companies over the years with only selling 4,711 cars during January, they have come back with the i-MiEV. The have decided to bring the i-MiEV out early this year to compete with the more successful electric car companies such as the Nissan Leaf and the Chevy Volt.

The United States government is offering a $7,500 tax break for anyone who buys an electric car. This is how excited they are to offer these types of cars. This is such a great car that the American Council for an Energy Efficient Economy has named it the greenest car. This is also the very first time an electric car has been given the number one spot for greenest car!

Mitsubishi i-MiEV

2. 2012 Nissan Leaf

There are some benefits to driving the 2012 Nissan Leaf. Here they are:

• 99 MPG equivalent
• Electric type car
• Front wheel drive-mid sized car
• $612 for fuel every year
• $35,200 cost to purchase but this does not include the tax credit

The 2012 Nissan Leaf was originally only available for purchase in 7 states. These states include Arizona, California, Hawaii, Oregon, Texas, Washington and Tennessee. However, in July 2011 Nissan began marketing the car in even more states. Also, unlike Mitsubishi, Nissan is already highly popular in the US and has sold over 79,000 cars. They also have a 9 percent share of the American market. Because of this, Nissan has the power to push the Nissan Leaf to be a major alternative electric car.

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3. 2012 Azure Dynamics Transit Connect Electric Van

This van has some benefits to driving it. Here they are:

• 62 MPG equivalent
• Electric type engine
• Front wheel drive van
• $972 for fuel every year
• Purchase price is $22,035

This vehicle is basically a commercial truck. Ford and the Canadian car company, Azure launched this van in the middle of 2010. This van comes in both a wagon size and a basic type van. The sales are predicted to be less than 2,000 this year.

4. 2012 Toyota Prius

This car has some benefits to driving and owning it. Here they are:

• 50 MPG
• Hybrid type engine
• Front wheel drive-mid-sized
• $1,116 for fuel every year
• $23,015 to purchase this car

The Toyota Prius has three different car models that have been reported as among the top 11 cars sold in America. The three models include a base model, a smaller “c” model and the four door wagon. The Toyota Prius is considered to be the king of all electric cars. It has gone through three different generations before it was even sold in 1997 in Japan. Last year, they produced an all electric version of this car. For all of 2011, the Prius took the top spot with selling over 252,000 cars.

2012 Toyota Prius V Review

5. 2012 Honda Civic Hybrid

There are some benefits to owning and driving this car. Here they are:

• 44 MPG
• Hybrid type car
• Front wheel drive, four door sedan
• $1,268 for fuel every year
• $24,050 to purchase this car

The Civic was already highly popular and Honda added the fuel efficient hybrid to the line-up to make it even more popular. There are now 7 different models to the Civic. From the $15, 805 sedan to the more popular “si” Coupe. Honda has also offered great financing packages to increase the sales of the Civic. These include a 0.9 percent financing option for as long as 60 months. This either means they won’t be able to sell the cars or they will take their rivals on the car market by storm.

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Roku Player

The Roku Player would be a great gift for dad whether he is into technology or not. With the Roku Player he can finally cut the cord on cable or satellite and watch whatever he wants on television. This cool tech gadget streams video to dads television so he can watch his favorite television episodes or movies whenever he wants to. He can stream Netflix, Hulu Plus, Crackle, Amazon Prime and many other different stations. Dad will love you for this one.

Ferrari 458 Italia

Hey while we’re dreaming, might as well throw in the dream gift, toted by many car aficionados as the “highest tech” vehicle for sale on the road today. This v-12 beast of a car comes equipped with Formula-One driving technology, developed by racing engineers who have a “cost-is-no-object” mentality and managed to gracefully pass down the technology from the race track to the road. It’s $375,000 price tag may have a budget conscious consumer looking the other way  but for the elite where price is no object they will step into one of the most amazing feats of Italian engineering known to man, and with this prize fighter weighing in at a little over 3000 lbs it’s lighter and faster than a Corvette or a Porsche 911.

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Azeco Stereo Bluetooth Folding Headset

Does dad love his music? Now he can listen to it in style and listen to it like it is the only thing in the room with the Azeco Stereo Bluetooth Folding Headset. This headset is sleek and stylish and dad can listen to his music with this headset on his computer, iPod, iPad or cell phone. Dad will love this if he really loves his gadgets and his music.

Blu-Ray Player

With a Blu-Ray Player dad can watch his favorite movies in HD. Actually much better than HD because these players have better sound and higher quality. Dad will love sitting in his man cave watching his favorite television show or movie on his new Blu-Ray Player. Nothing better than relaxing in his favorite room watching his favorite show or movie on his big screen television.

Eton Rukus Portable Bluetooth Speakers

With these cool bluetooth speakers, dad can rock it out with his iPad whether out hiking, fishing or camping. They use a solar cell to bring the technology on without the wires. Using the solar cell, these speakers have the ability to work all day without wires or electricity. It also works on computers, tablets or smartphones. Show dad how cool you are by buying these speakers for him so he can listen to his tunes all day long.

Leap Motion Control

Although the leap motion control is only available for pre-order and not all of the apps are working for it yet, you can still buy this for dad and he will love it anyway. Especially if he is an early adopter. The leap motion control is a really awesome gadget every dad would love to have. It will allow dad to play his games on his computer with just his hands. It will even allow dad to digitally sign his name with a real pen or pencil but on the computer. This thing is really awesome and although it is a little pricey and really new, dad will love it!

With all of these cool gadgets, what dad wouldn’t love having them? Some are brand new, some are older but all are still fun and all are just plain great for dad to have this Father’s Day. Turn dad into a technology lover with these great tech gifts!

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