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The Federal Reserve Bank cut interest rates by three quarters of a point this week, opening a window for consumers who need to refinance their homes. With hundreds of thousands of adjustable-rate mortgages expected to reset in 2008, the timing of this cut is on the mark for credit-worthy consumers.

The Lowest Mortgage Rate In Four Years

The new rate, at 3.5% will eventually filter down to mortgages, indeed the trend has already started. According to Bankrate, the average rate for a 30-year fixed mortgage now stands at 5.57%, the lowest it has been since March 2004.

The Fed’s Emergency Action

The Fed’s rate cut has been called an “emergency action” as the federal government looks at ways to stem the current mortgage financing crisis. With so many homeowners holding low-rate adjustable mortgages expected to reset at much higher rates over the next few months, politicians are seeing a crisis in the making.

When 2007 began, the subprime mortgage mess unfolded resulting in a higher number of loan defaults leading to a surge in home foreclosures. The U.S. Congress encouraged the relaxing of qualifying standards in the early part of this decade by expanding home ownership to lower-income consumers. Barely able to make mortgage payments many at-risk homeowners weren’t able to meet their higher monthly payments which began to reset in 2006 for some.

Qualifying For Refinancing In 2008

Despite the good news of a rate drop, not every homeowner will qualify for refinancing. Mortgage companies have tightened up lending requirements and are insisting that the following standards be met before lending money:

Consumers must have good credit. Those homeowners who have already defaulted on their loans are not eligible to refinance and many who are behind on their payments and approaching foreclosure will also be left out. A good to excellent credit score is what most mortgage companies are now requiring.

Adequate documentation is required. Those “no-doc” or no documentation loans from just a few years ago have disappeared. Today, consumers must show proof of income, show job stability and they may have to show their federal tax returns dating back as many as the past three years.

Refinance Now or Lose Out

Some homeowners are likely to want to wait and refinance when rates drop further in order to gain the best rate possible. This could be a mistake for two reasons:

1. There is no guarantee that rates will drop much further, and
2. Mortgage rates are already below historical averages.

Any delay on seeking refinancing could close that window for some consumers. If your financial picture is stable right now, what will it be in April or in August? Industry experts are advising consumers needing to refinance their loans to act while they can, before the refinancing window closes for good.

Travel Tips

Alaska may be too cold for this time of year.
But start planning an Alaskan Trip for the Summer.

Alaska Travel

start your search here

Home Improvement Tips

It would be nice to kiss your boss good-bye.  But you need the paycheck.  How about starting your own home business.  We will flush out some ideas over the next few weeks on home business opportunities (so stay tuned).

In the meantime, investigate what you need to do to setting up your home business … at home!

view our in-home office ideas

College Planning Tips

Monthly Checklist for January 27

see our BLOG: campus life for planning tips and other campus gossip

Consumer Financing Tip

Mortgage rates dropped again this past week.  Now is the time to refinance your mortgage into a more secured, fixed rate (check rates below). We have a consumer refinance guide for you to review prior to making the application.

what you need to know about home refinancing

Credit Card Tip

Holiday credit card payments coming due?  Get the scoop on how to manage your credit card debt.

about managing and paying down credit card debt

Lowering Debt Obligations

Speaking of debt, there are options to lower student, housing and other consumer debt.  Read up on how best to manage your debt obligations:

suggestions on lowering debt obligations

BLOG postings: (link to Achieving Success BLOG for all posts and PDF downloads)

Discipline for Success:

The Second Ingredient

“There is no substitute for hard work . . . Genius is one per cent inspiration and ninety-nine per cent perspiration”.
Thomas Alva Edison

continuation from BLOG post: part IV.f 

So Let’s Get Success

Now that you have defined your objective in life, identified and prioritized the goals that will achieve the objective, and planned the benchmarks that will accomplish each goal, you are ready to travel the road to success. Right? Perhaps if your path is less traveled by others who seek the same objective. But if you are like most people, your road to success will be littered with potholes of physical and mental anguish. Success requires discipline if you are to overcome the “potholes” that can hinder each traveled mile.

Discipline is the second ingredient for success. It’s the physical and mental action that performs the tasks outlined in your plan. We increase discipline by overcoming the impediments that hinder our progress and building up the attributes that makeup our character.

Take Dave Mansfield, for example. His road to the Presidency was littered with potholes that obstructed his every step. One large ‘pothole’ was his lack of leadership skills and self-confidence. Dave failed to command initiatives and programs when around other aspiring politicians with strong personalities. He cowered before others who displayed greater skills. He became part of a group that attracted mean-spirited people who would rip apart others whose goals conflict with theirs. Dave lacked the inner skills and discipline to combat criticism. Character flaws such as these became impediments to his successful completion of his goals and ambitions.

Character Impediments

Impediments are character weaknesses — both physical and mental. We all have weaknesses; we may be physically weak, socially shy, or lack the aptitude for certain tasks. Many impediments develop early in our lives and define our character and personality. You will need to overcome these impediments to successfully achieve the goals that you want.

Impediments can be found in any one of our five distinct character attributes. We have two physical attributes (physical and physical temperance), two mental attributes (education and social), and one spiritual attribute. We increase discipline by developing and strengthening each attribute. As we become more physically, mentally, and spiritually stronger, we likewise become more self-confident. We begin to witness positive changes in our character that gives us the inner will power to succeed.

You may be required to make a character change when attempting certain goals. Many of us fail to take this in consideration when we plan to conquer a personal feat. We set a goal or a year-end resolution, perform some preliminary planning, and then jump into the tasks that will supposedly achieve success. But reality is harsh. We become discouraged, angered, frustrated, and despondent when success becomes less certain. Our expectations fail and we often quit.

We fail to achieve our goals because we are undertaking tasks that require a change of character or personality. We may resist changes to our character because we feel uncomfortable when we try to force ourself to do something that is opposite of who we are.

Who Are You?

Let’s say that you want to become a television personality star. Imagine how difficult it would be to accomplish this goal if you were socially shy or socially weak. Shyness thus becomes a social impediment and character weakness. Unless you change that part of your character and strengthen it — which will take considerable effort — you will most likely fail to achieve your lifetime goal. You need to ask these questions: