Streamline Refinancing with an FHA Loan

March 31, 2009 · Filed Under FHA, FHA Loan · Comment 

Since 1934, The Federal Housing Administration has been helping Americans become homeowners. In 1934 the Americans were experiencing difficult financial times; times similar to the ones we are living in today. The FHA continues to work for its commitment to help American citizens buy and keep their homes. One plan available to help American keep their homes is the Streamline Refinance Program.

The FHA Streamline Refinance Loan has been available since the early 1980’s. The term Streamline refers to the minimal amount of paperwork required to originate and underwrite the loan. Streamline loans can occur with or without an appraisal and may not require credit underwriting. It may be possible to add or subtract names to title.

In general the following qualifications must be met to streamline a loan:

  • The current mortgage that is being refinanced must be an FHA insured loan
  • The mortgage being refinanced must be current (not delinquent)
  • The refinance must result in a lower monthly payment
  • No cash may be taken out on a streamline refinance

Some lenders may offer a “no cost” streamline refinance. This is possible in a few ways. By offering a slightly higher interest rate, the lender pays closing costs from the increased interest. Lenders may also include the closing costs in the new loan amount. This is only possible if there is sufficient equity in the home as determined by an appraisal, or if there is no appraisal, it may be possible if the new loan amount is lower than the original loan amount.

The FHA is committed to keeping Americans in their homes. You can turn to a HUD approved counselor for help with all your mortgage loan needs.

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Consolidate your credit card debts into one monthly payment

March 24, 2009 · Filed Under Consolidate debt, Credit card debt, Debt · Comment 

Credit card companies have been offering a variety of offers to their customers and this has been putting people deeper into debts. The credit card offers are spreading throughout the world like an unchecked plague. Customers often get attracted to one offer or the other. Specifically, one credit card company will offer a great offer in the airlines miles while the other company will offer other unique benefits that sound even better to the customers. Due to these varieties of offers, consumers simply max out their credit cards and need new ones to open up more credit avenues.

The outcome of taking so many offers from different credit card companies is that the monthly bills of various cards will get due and the customer will hardly see any money left to pay the credit card debt within the due dates. No one likes to see a plethora of credit card bills flooding in their mailbox, and if you are not paying the bills within the due dates, the credit card companies will charge very high interests and fees on the outstanding balance. Needless to say, your credit rating is taking a hit.

If you find yourself in such a situation, you need to keep a constant check on your spending habits and change wherever required. The next thing you need to do is to consolidate your debts into one monthly payment plan and have an affordable repayment plan. The credit card companies will be willing to work on your terms by reducing the interest rates and set a lower repayment plan.

If you are a homeowner, a home equity loan is a good way to obtain lower interest rate and to replace all those high interest credit card rates. If you can’t qualify for a home equity loan, apply for a debt consolidation loan to resolve your other financial problems. In the worst case, if you can qualify for a large-size credit limit card with a slightly lower interest rate, go for it.

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List of tax deductibles

March 9, 2009 · Filed Under Tax · Comment 

We all should have enough knowledge about filling out the tax return for the minimum amount of legally required taxes. To understand this, we should have fair knowledge about tax credits and deductions. Tax credits are more valuable because they directly reduce taxes. When a tax deduction is applied, the amount of income gets reduced on which you are taxed. For example, 20% tax on an income of $100,000 means that you will have to pay tax of $20,000. A tax credit of $10,000 is subtracted from the taxes owed and results in a $10,000 tax. A tax deduction reduces the income to $90,000 and results in a tax of $18,000 (20% of $90,000). Hence the best way is to keep a listing of tax deductibles during the year using a 12 month expense worksheet.


Tax credits: Tax credits are often helpful to the small number of tax filers. Many people use three tax credits.

Child care tax credits: This is available to anyone who pays someone else to take care of their child under the age of 13. Your list of tax deductibles must include the name and social security number of your care provider. If you do not provide this information, your child care credit will be denied.

Dependant child credit: This is available to anyone having a dependant less than 17 years of age. This credit is phased out for high income filers, and people with high adjusted gross income.

Tuition tax credits: This is of two types, the Hope Scholarship and Lifetime learning Credits. This is not available to High income filers.

  • Tax deductions

Tax payers can choose to take their standard deduction or to itemize their deductions. You should keep a list of the tax deductibles. If the total number of deductibles is greater than the standard deduction, you should itemize your deductions on Form 1040, Schedule A.  Some of the tax deductibles include:

1) Charitable Contributions: You can consider charitable contributions to qualified organizations as a tax deduction.

2) Medical/ Dental Expenses: You can deduct medical and dental expenses for yourself, spouse and dependents that exceed 7.5% of your adjusted gross income.

3) Business Expenses: There are a number of business expenses including Business Use of Home, Business Use of Car, Business Travel Expenses, Business Entertainment Expenses, Educational Expenses, and Employee Business Expenses that are itemized deductions. Therefore, keeping track of your business tax deductibles is critical. Employees can only claim business use of their personal property if the use is for the convenience of their employer and it is required as a condition of employment.

4) IRA: Contributions to an IRA can lead to increased retirement savings.

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