Broward Directory Blog

From First Trust Mortgage

If you used a credit card to make what turns out to be an unsatisfactory purchase, you should first seek a refund or a replacement from the merchant that sold you the item. But if you have no luck there, you may have some recourse through the credit card company.

There are some requirements. First, you must have used the credit card to purchase the merchandise for personal (not business) use. Second, if you’ve already paid the credit card bill on which the sale is listed, the credit card company generally won’t help you.

Additionally, the unsatisfactory purchase must have been made either with a charge card issued by the merchant or with a bank’s card. If the item was not purchased with the merchant’s own card, then the item must cost $50 or more.

Further, unless you used the merchant’s own card, the purchase must also have occurred within your home state or within 100 miles of your billing address. Catalogue sales, Internet sales, and orders placed by telephone may be considered in-state purchases. State laws may vary, but these purchases are generally protected.

If you’re unable to resolve the matter with the merchant, be sure to write the credit card company within 60 days of when the charge first appeared on your statement. Include in your letter your name, account number, information about the unsatisfactory item, and what you’ve done to try to resolve the matter with the seller.

The card issuer will usually investigate the matter, and you may withhold payment on the unsatisfactory merchandise until the matter is resolved. (Until then, no interest or late fees will be charged.) If the investigation reveals you are right and the merchant is at fault, you won’t have to pay for the item or any finance charges on it. However, if the card issuer doesn’t believe the merchant is at fault, you’ll be expected to pay for the item. If you want to continue the dispute with the merchant, you’ll have to do so in court.

Certified Mortgage Planning Specialist
South Florida Mortgage Broker
First Trust Mortgage
2933 W Cypress Creek Rd, #201
Ft Lauderdale, FL 33309
954-771-1828 ext 229
954-771-1719 Fax
E-mail: Contact Page

From First Trust Mortgage

What’s a credit score and why should I care about it?

Your credit score is the result of a mathematical formula that’s applied to all the information in your credit report (both positive and negative) and then compared to millions of other credit reports. The most common credit score is a FICO score, developed by the Fair Isaac Corporation. A variation of the basic FICO model is used by each of the three major credit reporting agencies: Equifax, Experian, and TransUnion.

Your FICO score is based on five categories, each of which accounts for a percentage of your total score:

• Your payment history: 35%
• An analysis of your debt: 30%
• The length of your credit history: 15%
• Recent inquiries/new credit activity: 10%
• Types of credit in use: 10%

The result is a three-digit number between 300 and 850 that estimates your level of credit risk. The higher the number, the lower the risk.

This number significantly affects your ability to get credit and the terms you’re offered. Generally, lenders consider people with scores above 700 to be in good financial health, and worthy of the best interest rates and credit terms. Those with scores below 600 are considered to be financially risky, and may be turned down for credit or offered stricter terms (higher interest rates, lower credit limits, and/ or requirements for collateral or a cosigner or both).

To keep your score high:

• Pay your bills on time
• Repair any damage (i.e., overdue payments)as quickly as possible
• Keep your balances on your credit cards low (especially in relation to your credit limits)
• Pay off your debt
• Don’t open new accounts you don’t need

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Certified Mortgage Planning Specialist
South Florida Mortgage Broker
First Trust Mortgage
2933 W Cypress Creek Rd, #201
Ft Lauderdale, FL 33309
954-771-1828 ext 229
954-771-1719 Fax
http://www.broward-directory.com/BrowardMortgages/
E-mail: Contact Page

From First Trust Mortgages

Despite passing three major pieces of tax legislation in the past year, Congress is still considering a host of expired and expiring provisions. While it’s likely that several of these provisions will be renewed for the 2008 tax year, the uncertainty creates a challenging planning environment. With the window of opportunity for many tax-saving moves closing on December 31, it makes sense to focus on the basics, while staying ready to take advantage of any late-breaking legislative developments.

Timing is everything
Year-end tax planning is as much about the 2009 tax year as it is about the 2008 tax year. There’s a real opportunity for tax savings when you can predict that you’ll be paying taxes at a lower rate (for example, if your income will be significantly different) in one year than in the other. If that’s the case, some simple year-end moves can pay off in a big way.

For example, you may be able to defer a yearend bonus, or delay the collection of business debts, rents, and payments for services. Similarly, you may be able to accelerate deductions into 2008 by paying some deductible expenses in December rather than in January.

Alternative minimum tax (AMT) facts
If you’re subject to the AMT, traditional yearend maneuvers, like deferring income and accelerating deductions, can actually hurt you. The AMT–essentially a separate federal income tax system with its own rates and rules– effectively disallows a number of itemized deductions, making it a significant consideration when it comes to year-end moves. For example, if you’re subject to the AMT in 2008, prepaying 2009 state and local taxes won’t help your 2008 tax situation, but could hurt your 2009 bottom line.

Legislation signed into law in December 2007 brought the most recent in a long series of temporary “fixes” for the AMT, but this temporary fix (in the form of increased AMT exemption amounts) expired at the end of 2007. If Congress doesn’t act, the number of taxpayers subject to AMT could reach 25.7 million in 2008 (Source: Joint Committee on Taxation, JCX-38-07, June 25, 2007). Congress is likely to take some action, but the specifics are uncertain, making it important to stay up-to-date on any new developments.

Don’t overlook IRA and retirement plan opportunities
Traditional IRAs (assuming you qualify to make deductible contributions) and employer sponsored retirement plans, such as 401(k) plans, allow you to contribute funds pretax, reducing your 2008 income. Contributions you make to a Roth IRA or Roth 401(k) aren’t deductible, so there’s no benefit for 2008, but qualified Roth distributions are completely free from federal income tax–making these retirement savings vehicles very appealing.

For 2008, the maximum amount you can contribute to an IRA has increased to $5,000, and you can contribute up to $15,500 to a 401(k) plan. If you’re age 50 or older, you can contribute up to $6,000 to an IRA, and up to $20,500 to a 401(k). The window to make 2008 contributions to your 401(k) closes at the end of the year, while you can generally make 2008 contributions to your IRA until April 15, 2009.

If you qualify, consider whether it makes sense to convert some or all of your traditional IRA assets to a Roth IRA. Funds that you convert, to the extent the funds represent investment earnings and deductible contributions, are considered taxable income. Nevertheless, the potential future tax benefit could outweigh the current tax bill.

Expired provisions likely to be renewed

In addition to AMT relief, watch for action on other provisions that expired at the end of 2007, but are likely to be renewed, including:

• Election to take an itemized deduction for state and local sales tax in lieu of state and local income tax
• Above-the-line deduction for qualified tuition and related expenses
• Above-the-line deduction for certain expenses of elementary and secondary school teachers
• Tax-free distributions from IRAs for charitable purposes of up to $100,000 per person, per year

It’s always difficult, at best, to anticipate what Congress will do. In an election year, it’s even more unpredictable. If the last few years are any indication, though, it’s not unreasonable to assume that we might see some legislation late in the year, so stay alert.

Certified Mortgage Planning Specialist
South Florida Mortgage Broker
First Trust Mortgage
2933 W Cypress Creek Rd, #201
Ft Lauderdale, FL 33309
954-771-1828 ext 229
954-771-1719 Fax
E-mail: Contact Page

From First Trust Mortgage

They’re not all in run-down neighborhoods, and they’re not all in complete disrepair. As the housing market’s woes continue, more homes go into foreclosure, and more real estate investment opportunities open up. While a buyer still has to prepare and beware, it may be possible to purchase a property in foreclosure at a discount off its market value.

Foreclosure is a legal process whereby a lender terminates a borrower’s right to redeem a property, generally because the borrower has defaulted on the mortgage. Once the foreclosure process is complete, the lender can sell the property to repay the mortgage.

If you’re considering buying a foreclosed property, keep in mind that there are many pitfalls to watch out for, and laws vary from state to state. You’ll want to work with an experienced real estate attorney.

The three stages of foreclosure

Depending on state law, foreclosure can be a relatively short or lengthy process. You might be able to buy a property in pre-foreclosure, at a foreclosure auction, or (if it didn’t sell at auction) in the real estate owned (REO) phase.

Pre-foreclosures

In order to identify properties that are in a preforeclosure status, you’ll need to locate loans that are in default. To do this, you may need to spend time in the courthouse researching foreclosure filings or subscribe to an online foreclosure reporting service that will do this for you. Once you find a property you’re interested in, you’ll need a title search performed to determine what liens are against the property, and you’ll need to contact the owner to negotiate a purchase. You’ll also need to have the property inspected (it may need some repair work) and then determine its market value. In making an offer on the property, consider the cost of paying off liens, repairing the property, and any other fees you’ll need to pay (such as those associated with securing financing to make the purchase).

This option requires a lot of legwork on your part and (preferably) the services of others experienced in the process. Contacting an owner (especially one who hasn’t listed the property for sale) can be difficult and stressful. However, pre-foreclosure sales may require minimum down payments, and you may be able to acquire a property at a good discount off its market value.

Auction sales

Once the foreclosure process is complete, the foreclosing lender (usually the holder of the first mortgage) may attempt to sell the property at auction–a fast-moving, public proceeding. Before you buy, you should have the title researched just as you would when making a pre-foreclosure offer. However, you generally won’t be allowed to have the property inspected beforehand (which precludes the possibility of obtaining a mortgage to purchase it), so you’ll be buying it “as is” and may not know all of what that entails. If you’re the successful bidder, you’ll need to make at least the required minimum down payment in cash (or with a certified check) on the spot and pay or finance the balance within 30 days, sometimes sooner.

Because you can’t first inspect the property and arrange financing, and because you must buy it “as is,” buying a property at auction can be very risky. However, you can receive a substantial discount off the market value of a property when it’s bought at auction.

Real estate owned (REO) properties

If a foreclosed property doesn’t sell at auction, the foreclosing lender takes possession of it. As a result, junior liens (such as second mortgages or home equity lines of credit) that may have encumbered the property’s title are discharged, and any taxes owed are paid. Any occupants remaining in the property are evicted, and the property is usually listed with a real estate agent.

At that point, the property becomes available for inspection. You may be buying an REO “as is,” but you’ll be able to find out what that means, and can adjust your purchase offer accordingly. While the lender holding the REO will try to get as much as possible for the property, it may consider discounts off market value in order to get the property off its books.

Purchasing an REO is probably the least risky way to buy a foreclosed property. You have time to arrange financing, and you may be able to obtain some discount off the property’s market value. However, the discount off market value will generally not be as substantial as with the other options for buying foreclosed property, and working with the bank can be a lengthy process.

Certified Mortgage Planning Specialist
South Florida Mortgage Broker
First Trust Mortgage
2933 W Cypress Creek Rd, #201
Ft Lauderdale, FL 33309
954-771-1828 ext 229
954-771-1719 Fax
E-mail: Contact Page

A key part of managing your money is managing your emotions, particularly when the stock market is going through a period of uncertainty. Being able to keep your cool is one of the most valuable skills you can have as an investor.

Stay on course by continuing to save
Even if the value of your holdings fluctuates, regularly adding to an account that’s designed for a long-term goal may cushion the emotional impact of market swings. If losses are offset even in part by new savings, the bottom- line number on your statement might not be quite so discouraging.

If you’re using dollar-cost averaging–investing a specific amount regularly regardless of fluctuating price levels–you may be getting a bargain by buying when prices are down. However, dollar-cost averaging can’t guarantee a profit or protect against a loss, and you should consider your financial ability to continue purchases through periods of low price levels.

Stick with your game plan
Solid asset allocation is the basis of sound investing. One of the reasons a diversified portfolio is so important is that strong performance of some investments may help offset poor performance by others. Even with an appropriate asset allocation, some parts of a portfolio may struggle at any given time. Diversification can’t guarantee a profit or protect against a loss, but it can help you balance risks.

Look in the rear-view mirror
If you’re investing long term, sometimes it helps to take a look back and see how far you’ve come. If your portfolio is down this year, it can be easy to forget any progress you may already have made over the years, though past performance is no guarantee of future returns.

Think about why you made a specific investment in the first place. That can help you determine if it still deserves a place in your investing strategy. Understanding how a specific holding fits in your portfolio also can help you consider whether a lower price might actually represent a buying opportunity. If you don’t know an investment’s purpose in your overall strategy, now’s the time to find out.

Remember that everything’s relative
Most of the variance in the returns of different portfolios is generally attributable to their asset allocations. If you’ve got a well-diversified portfolio, it could be useful to compare its overall performance to relevant benchmarks. If you find that your investments are at least matching those benchmarks, that realization might help you feel better about your overall strategy.

Remind yourself that nothing lasts forever
Ups and downs are normal for the stock market. If you regret not selling at a market peak, or missed a bargain, remember that you’re likely to have other opportunities at some point. Having predetermined guidelines for buying and selling can prevent emotion from dictating investment decisions.

Allen Robinson – CMPS,CMA,TEAM,CLA
Certified Mortgage Planning Specialist
South Florida Mortgage Broker
First Trust Mortgage
2933 W Cypress Creek Rd, #201
Ft Lauderdale, FL 33309
954-771-1828 ext 229
954-771-1719 Fax
E-mail: Contact Page

First Trust Mortgage was founded in 1996 and provides residential mortgages in Florida. Allen's vision for First Trust Mortgage was based on two principles. First was to help his clients make informed decisions regarding residential mortgages. Second was to build long lasting relationships with his clients and referral partners. Over the past 5 years Allen has concentrated his education and efforts in the area of managing Real Estate equity through mortgage planning. Allen was one of the first certified mortgage planning specialists in the State of Florida and is a regular guest of Steve Pomegranate's "On The Money" radio program on NPR and Ray West's "Talk About Money" radio program on WAFG. Allen also teaches continuing education classes to certified financial planners and insurance professionals around the subject of managing equity in real estate.

Why do you need a Broward Certified Mortgage Planning Specialist?

• We can help you save money in obtaining your mortgage by utilizing our experience
• Trained to increase cashflow and help reduce debt
• Understand how to implement mortgage strategies
• Certified Mortgage Planning Specialist professionals demonstrate financial knowledge and expertise regarding the tax and financial planning implications of various mortgage and real estate investment strategies.

Certified Mortgage Planning Specialist (CMPS) professionals have demonstrated financial knowledge and expertise regarding the tax and financial planning implications of various mortgage and real estate investment strategies.

Therefore, Certified Mortgage Planning Specialist professionals can better advise you when it comes to:

• Broward Single Family Mortgages
• Condo – Townhome Mortgage Loans
• Commercial Real Estate Loans for Dade, Broward and Palm Beach
• Office and/or Warehouse Condominiums Mortgages
• Conventional – FHA Mortgages
• Debt Consolidation
• Home Improvement
• Jumbo Loans
• Adjusting Arms
• FHA stream line Refi
• Reverse mortgage

We can help you get the lowest available mortgage rates from the Nation's Top lenders in the industry

Allen Robinson – CMPS,CMA,TEAM,CLA
Certified Mortgage Planning Specialist
First Trust Mortgage
2933 W Cypress Creek Rd, #201
Ft Lauderdale, FL 33309
954-771-1828 ext 229
954-771-1719 Fax

http://www.broward-directory.com/BrowardMortgages/