Many people claim to have a thankless job.  Most days, the same can be said for us.  Every now and then we have a day that someone stops and takes the time to say thank you.  Below is a letter I received on Thursday from a woman that just closed on the purchase of her new home. "October 30, 2008 Karl Peidl Senior Mortgage Consultant Superior Mortgage854 S White Horse PikeHammonton, NJ 08037    Dear Karl, Just a note to say a huge THANK YOU for your help in securing my new townhome. I move in tomorrow and want you to know how much I appreciate your help in getting me to this point. Thank you for guiding me through this process in such great detail. You were careful to explain everything to me in "layman's" terms to make sure I understood, and thanks to your careful eye on what was happen... 11/03/2008

According to the AARP, the median amount of today's inheritance is about $64,000. While that won't provide financial security for life, it is a lot of money and, therefore, requires careful planning before deciding what to do with it. The following tips can help you manage an inheritance. Step One...Do Nothing: Remember, you've just lost a loved one, you're receiving a sizable chunk of money, and your judgment may be clouded by emotion. Rather than make a decision you'll regret later, put the inheritance in a money market or savings account to keep it safe while you take time to make a plan. Check the Tax Laws: Some inheritances are tax free, but some are subject to federal and state taxes. So, diligently record what you inherited and when...and check the tax laws before you decide wha... 10/29/2008

  The Federal Reserve is scheduled to meet this week and announce its new Policy Statement and Interest Rate Decision Wednesday...and will cut the Fed Funds Rate once again. This is no big surprise. Throughout 2008, the Fed has lowered key interest rates in an effort to stimulate the economy - including cuts in its Fed Funds and Discount Rates earlier this month in an unscheduled meeting. As we know however, cuts in these interest rates do not translate into lower home loan rates. In fact, they typically move in the exact opposite direction. That's the reason I wanted to share this information with you today. If you want to secure a lower mortgage rate, the best time to act could be before the Fed meets and announces its latest cut.   In the chart below, notice the pink line. That line... 10/28/2008

If you are looking to buy, invest in, or refinance real estate now or in the coming months, your credit is going to play a more significant role in today's tight-fisted credit environment than it has in the past. It's that simple. Would-be borrowers need to address any and all credit issues now to avoid having to pay for it later.But, here's the kicker. Nearly 80% of all credit reports contain errors of some kind. Recent studies also indicate that about one-fourth of these reports contain mistakes so egregious that applicants could actually be denied credit! Don't let this happen to you.Step One: Get Your ReportThe three main credit bureaus, Equifax, Experian®, and TransUnion®, are required by law to provide you with a free copy of your credit report once every 12 months. To request yo... 10/23/2008

10/27/2008  UPDATE 1,950 acres of forest in the Wharton State Forest have burned.  The fire is now under control with the help of Mother Nature.....rain. ************************************************************************************** A FOREST FIRE WAS FUELED BY STRONG WINDS AND DRY WEATHER.  THE BLAZE RIPPED THROUGH HUNDREDS OF ACRES OF WHARTON STATE FOREST, CLOSING ROUTE 206 ON TUESDAY AND STILL IS CLOSED AT THIS PRESENT TIME.  ABOUT 200 FIREFIGHTERS ARE TRYING TO CONTAIN THE BLAZE. THE FIRE BORERS SHAMONG TOWNSHIP, BURLINGTON COUNTY, WATERFORD TOWNSHIP, CAMDEN COUNTY BEFORE IT SPREAD TO HAMMONTON, ATLANTIC COUNTY.  A FOREST FIRE RANGER SPOTTED THE FIRE IN THE MEDFORD TOWER AND REPORT THE FIRE AROUND 3:30PM.  the SMOKE WAS VISIBLE AS FAR AWAY AS ATLANTIC CITY AND BRIGANTINE, AND... 10/22/2008

Ever have a friend or family member ask you for a loan? It can be awkward and may lead to a strained relationship. So before you decide to be a banker, consider these steps to help avoid a potentially ugly situation. Don't Commit Right Away. When asked for a personal loan, don't say yes right away, especially if the sum of money is large. Instead, tell them you would like to help and explain that you need a few days to review your financial situation before you make a decision. Perhaps another solution will come to them in the meantime.Just Say No. If possible, try to avoid lending the money. Try to provide an explanation that will not hurt your relationship. You may want to consider offering to help in a non-financial way or giving a smaller amount as a gift, with no expectations of r... 10/20/2008

In the past, a consumer with a FICO score of 620 was considered to be a low-risk borrower by Fannie Mae and Freddie Mac. Not anymore. After suffering major losses in the mortgage market last year, the nation's two largest mortgage finance lenders have redefined risk, announcing new Loan-Level Price Adjustments (LLPAs) for borrowers with FICO scores below 720.LLPAs are automatic, cumulative fees based on credit scores and the loan-to-value, and they can significantly increase the cost of credit. These fees have nothing to do with your mortgage company or its various products and cannot be negotiated away.Let's take a look at the impact that LLPA's have on conforming loans.   *Based on a loan amount of $300,000 and a loan-to-value over 70%. This chart is meant to be a guide. Interest rate... 10/16/2008

I received a call today from a customer I had not heard from in 8 months.  He had contacted me originally about helping his dad buy a home.  The last few times I had called him in February he did not return my calls, so I moved on. Today he calls me out of the blue.  He wants to know if his dad still qualifies for 100% financing and what the rate would be now that the Fed cut rates yesterday.  First, I had to explain about the death of 100% financing.  Second, I had to explain that even though the Fed cut rates, mortgage rates actually went up. I'd already had the second part of this conversation several times this morning.  Then my curiosity made me ask why he called now.  Was it because of the announced Fed rate cut?  His answer proved my point to what I have been saying about the med... 10/09/2008

Ben Bernanke and the Fed brought financial aid to the streets, lowering the Federal Funds Rate and Discount Rate by 0.50%. In an unprecedented emergency move, central banks across the globe joined in lowering interest rates. This move follows Washington's passing of the $700 billion Rescue Plan. From Wall Street to Main Street, a common concern has been heard by Washington. "We need money... no, let me rephrase that...we need cheap money."   Rates Could Rise From Here Home loan rates have benefited from the weakness in the financial markets. Fixed rate mortgages remain very attractive. However, the Fed lowers short term interest rates to shore up financial markets. This could cause home loan rates to rise in the coming weeks and months if confidence returns to the stock markets. ARM Ho... 10/09/2008

The IRS permits a maximum exclusion on capital gain of $250,000 for individuals and $500,000 for married couples filing a joint return who sell their home, but of course some conditions apply.For the five-year timeframe prior to the date of the sale of your primary residence, you must meet the Ownership and Use Tests the IRS provides in Publication 523, Selling Your Home. These rules ensure you have owned the home for at least two years, and lived in the home for at least 24 months out of the last five years. Additionally, you may not have excluded a gain on your taxes from the sale of a different home within the last two years. Note that if you sell your property for less than your original purchase price, you cannot claim a capital loss.A 'reduced maximum exclusion' can apply to thos... 10/06/2008

  Annual income aside, there's not a person among us who wouldn't welcome the idea of having more money in their savings account. This is the money we use on everything from yearly vacations to family presents. Come holiday time, wouldn't it be nice to have an extra thousand or so dollars at your disposal? Here are a few ideas that can help to make that possible. The best part is you'll hardly feel it!Bring Your Lunch to Work - The average person spends $6 when they buy their lunch yet only $2 when they pack it themselves. That's a potential savings of $20 a week or $1,040 dollars a year.Durable over Disposable - Using products like Handi-Wipes (semi-disposable rags) as opposed to paper towels, and a rechargeable razor rather than the disposable kind, can save you up to $200 per year.H... 10/04/2008

    The Chinese have a proverb:  "May you live in interesting times."  And we are living through interesting times indeed.    Whatever the political posturing regarding the current rescue plan, a plan needs to be passed. Credit markets are frozen and banks are going bust every day. This is not totally because of "toxic" mortgages. This has a lot to do with FASB 157, also known as "mark to market". Each day lenders must mark their assets to the marketplace. It's like you having to appraise your home everyday and if your neighbor was under duress because they got very ill, divorced, lost their job and was forced to sell their home quickly they may have sold it super cheap. Now, does that mean your house is worth that super cheap price? Clearly not. Why? Because you are not under duress. Y... 10/02/2008

Check this out!!!  You have to read this blog!!! You will not believe it!!! What you are about to read is going to surprise you.... Are you interested in knowing more?  Who is she?  What happened?  These are questions that you surely want an answer to.  Why else would you be reading this. Want to know more about the headless woman found at a topless bar? Actually, there is no story here to tell.  This headline was suggested to me this afternoon by Bill Wagner to test how people respond to the title of a blog.  I suspect that this will be my most viewed blog ever.  Though it does not contain my typical helpful or educational content, the title will provoke many to look. Please comment on why you chose to read this blog. 10/01/2008