Identity theft statistics are shocking. And we are told that it will only become worse, before it gets any better. Are you likely to be affected?
According to recent studies, up to 7,000,000 people become identity theft victims each year, in the United States alone. That’s over 19,000 cases a day, or 799 cases an hour. Whichever way you look at it, these are shocking figures. And with more and more people using the Internet, online banking, and other hi-tech services, things aren’t likely to improve any time soon.
In fact, another research, a survey conducted on behalf of the Federal Trade Commission recently, tells us that the situation is even worse. According to the FTC survey report, 4.6% of the US population were identity fraud victims last year - that’s 10 million people.
According to the FTC figures, if someone fraudulently opens a new credit card or another loan account under your name, on average you can expect the dollar amount to go to about $10,200. That’s just an average amount.
To clean up your name, and your credit rating, you will need to deal with this experience. You can expect to spend between $500 and $1,200 of your own hard-earned money cleaning up the mess. You can also expect to invest between 30 and 60 hours of your time.
The above figures are just cold statistics. They say nothing about the emotional trauma, through which you are likely to go when it happens to you. It’s all very well to read and hear about bad things that happen to other people. It is quite different when the same thing happens to you, or your loved one.
Is there anything you can do in order to protect yourself? There is. Quite a bit actually. It’s all based on common sense and, while there are no guarantees in life, you will minimise the risk and make the life of an identity thief a lot harder.
Funny thing about thieves. They don’t like working hard. If you make it hard enough for them, they will usually go away - to find an easier target.
One of the common-sense things you can do in order to protect yourself, and your family, is to make yourself aware of the current scams that may affect you.
The most infamous one at the moment is so a called ‘phishing’ scam. In a nutshell it looks like this:
You get an email that looks like it was sent from your bank. They ask you to log in to your online account and verify some of your details. For your convenience, there is a link included right in the email. All you have to do is click on it an log in. Don’t ever!
The moment you click on that link and log in, the scam artists have your login ID and password recorded. This will enable them to log in to your account and within hours, or days, your account will be cleaned out!.
There are two common-sense approaches to deal with this.
First, you have to realise that your bank already has all the details they need to operate your online account. If they didn’t, you wouldn’t be able to open it in the first place. So, you can most likely quite safely delete the email and forget about it.
Secondly, if you have any doubts as to the authenticity of the email, you can get the bank’s phone number from your local phone book and give them a call. Tell them about the email you received and ask if they tried to contact you. I bet they are going to be as surprised as you are.
And just remember: Whatever you do, never, ever, log in to your bank account, or any other sensitive account for that matter, right from an email. You already have the login link somewhere in your records. If not, go to the bank’s main page and look for an online login page.
Tuesday, 26 August 2008
Friday, 18 July 2008
Good Mortgage Programs
If you want to purchase a new home or refinance your current mortgage, be sure to check out the wide array of loan programs available. If you have less than excellent or even poor credit, you can still qualify for a loan. If you have outstanding credit, though, you are in the proverbial driver's seat, when it comes to selecting your loan program. Be sure to find a good mortgage consultant, and carefully explain exactly what you need. Here are just a couple of "outside-the-box" programs that come in handy for some people but require excellent credit ratings.
Stated loan programs are designed for a person whose income or assets fluctuate from month to month and year to year. Not many banks offer stated programs. Many people who need stated programs get turned down by not only banks but by inexperienced mortgage brokers who don’t understand the breadth of the programs at their fingertips. So, you may have to enlighten them with your own insight by telling them this is the program you need.
Stated programs are for people who may not qualify for a conventional loan, because they do not meet income requirements a lender has. A prime example is someone who does not show all of her income on a W-2 tax return, for one reason or another. This person may make enough money to cover the mortgage payment, but she can’t prove she makes it on paper. Lenders like to see two years of W-2 income. This proves to them that you consistently make enough money to pay back the loan. Now, it’s important to note that this is a good credit program, and a lender will want someone with at least A-minus credit for approval. Here is where all that work to maintain your spartan credit record is going to pay off.
What the stated loan requires is all standard documents, except income verification. In other words, the loan officer is going to state your income on the application, and no proof is required. Please note that this program is not intended for someone who works at McDonalds to try to state that he makes $200,000 yearly, so he can get approved for a $400,000 loan. It is intended for people, like salesmen, whose income varies or for businessmen, who work on bonuses, which they may not receive until the next year. As long as the income is reasonable for the profession, no underwriter will ever question it. So, if you needed to make 60,000 yearly for approval, but you only show $54,000 on last year’s W-2, your mortgage broker can get you a stated income program, and he will simply write $60,00 on the application. Don’t worry, the lender won’t ask for pay stubs or tax returns. Your credit rating speaks for itself. In other words, the lender sees that you have an excellent payment history on your other debts, so he is willing to take on a bit more risk.
A stated asset program works the same way, and good credit is required for approval in this program, too. Lenders require cash reserves, in order to cover several months of mortgage payments, in the event something goes wrong after the loan closes, like you lose your job or get hurt. This can be a problem for people who have no savings, stocks, or retirement accounts, which are all acceptable forms of reserves. If you fall into this category, you simply ask for a stated asset loan, and the mortgage broker will state enough assets on your loan application to appease the lender.
This seems fraudulent, you might say. It isn’t, as long as you follow the guidelines set forth by the lenders. Remember, they created these programs, so they could loan more money. You’ll pay, of course, because the lender will hit you with a premium on your rate, because the loan is more of a risk. So, instead of getting a 6% rate, you might get as high as 6.75%, but at least you’ll get your loan.
There are many other loan programs that allow you to borrow more of the equity in the house, let's say up to 95% or even 100%, due to a great credit rating. Some programs allow for an improvement on your interest rate.
It's always important to ask your mortgage broker if there is some kind of incentive because you have A or A+ credit. Most lenders allow the mortgage broker to either give you the break in rate, or they'll give it to the broker in a cash commission. Many unscrupulous brokers will never mention the credit bonus to you, and they'll make up to .25% of the loan amount for themselves.
So, if you had a $200,000 loan, and the lender allowed a .25% interest reduction or commission to the broker, and the broker takes it, instead of giving it to you, that mortgage broker would make $500.00 extra dollars, which would be paid by the lender. Of course, if you had received the .25% better rate, your payment would decrease by about $30.00 each month and $360.00 each year. That's nearly $2,000 if you have the loan for five years that you would lose to a greedy mortgage broker. So, always ask for something, due to your excellent credit.
And always remember, with good credit, you are king. And kings always make the rules. Learn more at www.winningthemortgagegame.com
Stated loan programs are designed for a person whose income or assets fluctuate from month to month and year to year. Not many banks offer stated programs. Many people who need stated programs get turned down by not only banks but by inexperienced mortgage brokers who don’t understand the breadth of the programs at their fingertips. So, you may have to enlighten them with your own insight by telling them this is the program you need.
Stated programs are for people who may not qualify for a conventional loan, because they do not meet income requirements a lender has. A prime example is someone who does not show all of her income on a W-2 tax return, for one reason or another. This person may make enough money to cover the mortgage payment, but she can’t prove she makes it on paper. Lenders like to see two years of W-2 income. This proves to them that you consistently make enough money to pay back the loan. Now, it’s important to note that this is a good credit program, and a lender will want someone with at least A-minus credit for approval. Here is where all that work to maintain your spartan credit record is going to pay off.
What the stated loan requires is all standard documents, except income verification. In other words, the loan officer is going to state your income on the application, and no proof is required. Please note that this program is not intended for someone who works at McDonalds to try to state that he makes $200,000 yearly, so he can get approved for a $400,000 loan. It is intended for people, like salesmen, whose income varies or for businessmen, who work on bonuses, which they may not receive until the next year. As long as the income is reasonable for the profession, no underwriter will ever question it. So, if you needed to make 60,000 yearly for approval, but you only show $54,000 on last year’s W-2, your mortgage broker can get you a stated income program, and he will simply write $60,00 on the application. Don’t worry, the lender won’t ask for pay stubs or tax returns. Your credit rating speaks for itself. In other words, the lender sees that you have an excellent payment history on your other debts, so he is willing to take on a bit more risk.
A stated asset program works the same way, and good credit is required for approval in this program, too. Lenders require cash reserves, in order to cover several months of mortgage payments, in the event something goes wrong after the loan closes, like you lose your job or get hurt. This can be a problem for people who have no savings, stocks, or retirement accounts, which are all acceptable forms of reserves. If you fall into this category, you simply ask for a stated asset loan, and the mortgage broker will state enough assets on your loan application to appease the lender.
This seems fraudulent, you might say. It isn’t, as long as you follow the guidelines set forth by the lenders. Remember, they created these programs, so they could loan more money. You’ll pay, of course, because the lender will hit you with a premium on your rate, because the loan is more of a risk. So, instead of getting a 6% rate, you might get as high as 6.75%, but at least you’ll get your loan.
There are many other loan programs that allow you to borrow more of the equity in the house, let's say up to 95% or even 100%, due to a great credit rating. Some programs allow for an improvement on your interest rate.
It's always important to ask your mortgage broker if there is some kind of incentive because you have A or A+ credit. Most lenders allow the mortgage broker to either give you the break in rate, or they'll give it to the broker in a cash commission. Many unscrupulous brokers will never mention the credit bonus to you, and they'll make up to .25% of the loan amount for themselves.
So, if you had a $200,000 loan, and the lender allowed a .25% interest reduction or commission to the broker, and the broker takes it, instead of giving it to you, that mortgage broker would make $500.00 extra dollars, which would be paid by the lender. Of course, if you had received the .25% better rate, your payment would decrease by about $30.00 each month and $360.00 each year. That's nearly $2,000 if you have the loan for five years that you would lose to a greedy mortgage broker. So, always ask for something, due to your excellent credit.
And always remember, with good credit, you are king. And kings always make the rules. Learn more at www.winningthemortgagegame.com
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