5 Counterintuitive Ways You Can Ruin Your Credit

                                      Regarding your credit, you may think you know how to safeguard yourFICO score – pay your bills on time and don’t overextend. However, some behaviors that seem harmless, or even helpful, could unexpectedly tankyour score. Learning more about what these actions could be will help you keep your credit safe and avoid pitfalls.   5 Counterintuitive Ways You Can Ruin Your Credit 1. Closing Old Credit Cards – Many people have old credit cardscluttering up desk drawers that are not really needed anymore. But beforeyou close an old card you never use, understand that the length of credit isone factor of good credit, so closing an old card could lower your score. 2. Paying Off All Debt – Lenders like to see that you can manage debt.Paying off all debt can lower your score. Keeping a small, manageablebalance and regular payments might be a better strategy. 3. Co-Signing Loans – Helping someone by co-signing a loan mightseem like a generous offer but understand the risks. If they miss even onepayment, that bad debt will show up on your credit report and coulddramatically affect your credit score. 4. Applying for Credit – If you are considering a new car or home loan,you may think applying to multiple places is the responsible thing to do. Toomany inquiries in a short amount of time can lower your score. 5. Ignoring Small Bills – Take all your bills seriously. Even small bills likecable or the pool service could end up in collections if not paid on time. Acollection can negatively impact your credit score for up to 10 years. Taking your credit seriously is only the first step. Understanding all theunintended ways you can damage your score is the best way to protectyour credit and financial health.

Save Money and Energy with Radiant Floor Heating

Radiant floor heating has become increasingly popular over the past fewyears as more homeowners look for energy-efficient options. Unliketraditional heating systems that rely on forced air or radiators, radiant floorheating works by circulating warm water through pipes or electric heatingelements embedded under the flooring. This method delivers consistentheat with several energy-saving benefits. One key advantage of a radiant floor heating system is its ability to operateat lower temperatures while maintaining comfort. For example, forced airsystems often need a setting of 73-76 degrees to feel warm. Radiant floorsystems can achieve the same level of comfort with a temperature as lowas 65 degrees all while delivering more consistent warmth. Another reason for its efficiency is the elimination of heat loss associatedwith ductwork. Forced air systems can lose up to 30% of heat throughleaks or poorly insulated air ducts. Floor heating systems bypass this issueentirely, ensuring that warm air is generated on a consistent basis and risesthrough the home, heating more efficiently and consistently. Finally, radiant floor systems are compatible with renewable energysources like solar panels or heat pumps. This further enhances theireco-friendly focus and reduces reliance on traditional energy, such aselectricity. By delivering consistent heat at lower temperatures, radiantflooring systems provide a cost-effective, sustainable alternative totraditional heating options.

Understanding the Basics of a Reverse Mortgage

    A reverse mortgage is a loan option for homeowners aged 62 or older, allowing them to convertpart of their home equity into cash without selling their home. Unlike traditional mortgages,where homeowners make monthly payments to the lender, a reverse mortgage providespayments to the homeowner, effectively turning home equity into income. How It Works The most common type of reverse mortgage is the Home Equity Conversion Mortgage (HECM),insured by the Federal Housing Administration (FHA). To be eligible, homeowners generallyneed to meet the following criteria: ● Age: The youngest borrower must be at least 62 years old.● Home Ownership: The home should be owned outright or have a low mortgage balancethat can be paid off at closing with proceeds from the reverse mortgage.● Primary Residence: The property must be the homeowner's primary residence.● Property Type: Eligible properties typically include single-family homes, FHA-approvedcondominiums, and certain manufactured homes that meet FHA standards. Before proceeding, applicants are required to undergo counseling from a HUD-approvedagency to ensure they understand the implications of the loan and explore possible alternatives. Consumer Financial Protection Bureau Receiving Funds Homeowners can choose to receive the loan proceeds in various ways: Lump Sum: A one-time payment at closing (only available with a fixed-rate loan). Monthly Payments: Regular disbursements for a set period or for as long as thehomeowner lives in the home. Line of Credit: Funds that can be drawn as needed, with interest accruing only on theamounts taken. Combination: A mix of the above options, tailored to the homeowner's needs. The amount available depends on factors such as the homeowner's age, the home's appraisedvalue, and current interest rates. Key Considerations Financial Responsibilities: Homeowners remain responsible for property taxes,homeowners insurance, and maintenance. Failure to meet these obligations can lead toloan default and possible foreclosure.Consumer.gov Loan Repayment: The loan becomes due when the homeowner sells the home, movesout permanently, or passes away. Repayment is typically made through the sale of thehome, with any remaining equity going to the homeowner or their heirs. Interest and Fees: Interest rates on reverse mortgages are generally higher than thoseon traditional mortgages. Additionally, there are upfront costs, including origination fees,closing costs, and mortgage insurance premiums.Forbes Impact on Inheritance: Since the loan balance increases over time, it can reduce theamount of equity left to heirs. Heirs will need to repay the loan if they wish to keep thehome Is a Reverse Mortgage Right for You? Reverse mortgages can provide financial flexibility for retirees, allowing them to access homeequity to supplement income, cover medical expenses, or make home improvements. However,they also come with obligations and can affect the homeowner's estate. It's crucial to considerall options and consult with financial advisors and family members before making a decision. For more detailed information, the Consumer Financial Protection Bureau offers resources onreverse mortgages. Consumer Financial Protection Bureau

What Comes With The House?

  When buying or selling a home, there is a lot going on. It can be easy to getcaught up in the process and activity and overlook details that areimportant. One of the most overlooked issues is to define what comes withthe home. Certain items, particularly fixtures and appliances, can be areasof confusion and should be clearly discussed in the contract. Here are a few examples: · Fixtures – Fixtures are items attached to the property and typicallytransfer with the home. These include window treatments, built-in shelving,and lighting fixtures. · Appliances – Appliances can be confusing. Anything built-intransfers with the home, but others such as the refrigerator, washer/dryer,or stand-alone stove might not. · Personal Property – This is an area that can cause confusion. It’sassumed that furniture is owned by the sellers, but what about a room airconditioning unit? If there’s anything the buyer wants, they should be clearin the contract. · Outdoor Items – Items like sheds, outdoor furniture, BBQs, andplaysets should be addressed in the contract. They may not beautomatically included in the contract. There are many aspects of a real estate transaction that can be negotiated.The focus typically tends to be on price, loan, payments, and other financialconsiderations. This is normal. However, taking a step back to consider theexpectations of what other items transfer with the home can avoiddisappointment and conflict.