The US Postal Service has introduced the "forever" stamp. This special stamp, good for any first-class letter weighing up to one ounce, is valid forever, no matter how much postal rates increase. That means consumers can purchase these special stamps at today's rate and use them for years to come, even if postal prices double or triple. And, while there are definitely better places to invest your money in the long term, the forever stamp offers consumers protection against rate hikes and the annoyance of having to purchase one- and two-cent stamps whenever prices do increase.In 1968, first-class stamps were six cents. Since then, the price has risen 14 times, including the May 2007 increase to 41 cents. This past December, a new law was passed linking postal rates to the consumer price ... 04/21/2007

There are five factors that comprise the credit score. They are listed below in order of importance, just as an underwriter would look at the score:Payment History: 35% impact. Paying debt on time and in full has a positive impact. Late payments, judgments and charge-offs have a negative impact. Missing a high payment has a more severe impact than missing a low payment. Delinquencies that have occurred in the last two years carry more weight than older items.Outstanding Credit Balances: 30% impact. This factor marks the ratio between the outstanding balance and available credit. Ideally, the consumer should make an effort to keep balances as close to zero as possible, and definitely below 30% of the available credit limit when trying to purchase a home.Credit History: 15% impact. This m... 04/19/2007

Write-offs are the government's way of rewarding taxpayers when they've done something the government likes. And to judge by the write-offs, the government likes it when people borrow money to buy a house. There are write-offs aplenty, many of which people often forget. Make sure you take advantage of every break the IRS will give. Here are a few that are often forgotten:Points:According to the IRS, origination fees charged as points must be paid for the use of money, (for example, to obtain a lower interest rate) in order to be tax deductible. Origination fees that constitute a "service fee" are not tax deductible. The question must be asked, "Does the fee apply to the use of money, or is it a service charge?"Discount points are paid to secure a lower interest rate. IRS Publication 936... 04/19/2007

Annual Percentage Rate (APR) is a tool that consumers can use as a starting point to compare loan programs. However, it's important to keep in mind that APR is not a perfect system, and not all lenders calculate APR in the same way. While the Federal Truth-in-Lending Act does require any mortgage broker or lender to disclose APR to the consumer, there is no rule written in stone for calculating this number that each and every lender agrees upon.The point of calculating APR is to let the consumer know what the actual cost of their financing is in the form of a yearly rate. APR factors in certain closing costs and fees associated with the loan, and spreads this total over the life of the loan along with the actual note rate. The objective is to give the consumer a clearer picture of what ... 04/17/2007

Buying a home vs. renting is a big decision that takes careful consideration, as most mortgage planners will agree. But the rewards of home ownership are great. For many years, purchasing real estate has been considered an extremely profitable investment. It is an achievement that offers a sense of pride, financial stability and potential tax advantages.Yes, there are certain responsibilities associated with owning a home. Landlords will often argue the benefits of renting, and for obvious reason. If you are renting, you're helping them make their mortgage payment. The numbers are staggering if you look at it this way. If you are paying $1,000 per month for an apartment, and you know your rent will increase 5% every year, then over the next five years you will pay your landlord $66,309.... 04/11/2007

One of the biggest reasons homeowners refinance their mortgage is to obtain a lower interest rate and lower monthly payments. By refinancing, the borrower pays off their existing mortgage and replaces it with a new one. This can often be accomplished with a no-points no-fees loan program, which essentially means at "no cost" to the borrower.In the no-points no-fees scenario, the mortgage planner uses rebate monies paid by the lender to pay off non-recurring closing costs for the borrower. These are "one time" fees such as escrow or attorney fees, title insurance, document preparation, tax service, flood certification, processing and underwriting fees, etc. The borrower is still responsible for recurring fees such as interim insurance, property taxes or insurance policy payments. Refinan... 04/05/2007

Consumers interested in purchasing or refinancing a home will pay an interest rate based on current market conditions and their ability to pay back the loan. The borrower's income and debt ratios are taken into consideration by the lender, as well as the predictability factor provided by credit scoring. It's important to have a mortgage planner in your corner that has a keen eye for solutions to improving credit scores in an effort to get the best interest rate possible. Interest rates associated with various loan programs are broken down into schedules based on credit score ratings. While each lender has its own guidelines, it's safe to assume that as the consumer's credit score goes down, interest rates will go up. A borrower with an outstanding credit rating will get what is called a... 04/03/2007

There is a great debate within the inner-mortgage circles these days. Should we, as loan professionals, encourage clients to borrow as much money as possible? Or would consumers benefit more if we helped them to understand the advantages of 15-year amortization schedules and pre-paying principal? Let's examine the pros and cons of both strategies.Leveraging Your Property. In order to understand why you'd want to borrow as much as possible for your home purchase, you must first grasp the concept that equity has a zero rate of return. Here's an example: If Consumer "A" buys a home for $300,000, and puts 20% down, then they have $60,000 in equity. Over the next 5 years, the property appreciates $100,000 in value. Consumer "A" now has $160,000 in equity. Consumer "B" buys a home for $300,00... 04/03/2007

Taking the step into home ownership is one of the most important financial decisions a person will make in their lifetime. There are many factors to consider when embarking on this venture. Literally hundreds of loan programs are available, and it is important to find the one that best fits your personal long-term goals.First and foremost, you must have a mortgage planner in your corner that is willing to take the time to know what your long-term goals are. Communication is the key factor here. Curious prospective home buyers sometimes turn to Internet-based services just to see what current interest rates are. But a faceless web site will not take the prospect's future financial planning into consideration or guide the potential borrower through the many nuances of the loan process. Wh... 04/01/2007

Research is an important component of any large transaction.  I'm sure you'll agree that a home mortgage is one of, if not the largest financial investment a person will make in their lifetime.  I'm sure you'll also agree that given the importance of this investment you would want an industry professional that, quite frankly, knows their industry!  With that in mind here are a few questions to ask a potential mortgage professional to assure yourself that they indeed have a handle on their industry and, directly, your best interests.What are interest rates based on?  Mortgage interest rates are based on the yields of Mortgage Backed Securities or Mortgage Bonds.  These bonds are bought and sold daily by large investors.  Bond prices, just like stocks, fluctuate by the minute.  Mortgage p... 04/01/2007

"Do not dispise small beginnings"  A vintage 727-100 manufactured in April 1966 for American Air lines just might be "a butterfly flapping its wings in Asia creates a hurricane in the US".  The Last Flight of "Bahja" happened last Wednesday. It was an end and a new beginning.  With outstanding efforts and insight into the future of Southern Logistics Airport, this 727 will become the first classroom for a new  Victor Valley College offering of an FAA Certified Aircraft maintenence program.  Needed right now- 200 certified aircraft mechanics.Why? There is at least 12 years worth of maintenence waiting.  Many Planes are being outsourced to places likeChina, Africa, and Mexico. Sometimes the work is questionable. When Fed Ex quietly decommissioned this 41 year old aircraft (there were abou... 01/17/2007