Tuesday, April 17, 2007

A Not so Brave New World

Last night was a rather somber evening following the day’s events at Virginia Tech.

My sons and I had a discussion about the happenings at Virginia Tech and they wanted my explanation to why someone would do that? I told them there are just some confused people in the world who are just plain evil.

My 17 year old had an experience last year with another student making threats in his theater class at the high school. I recall my son coming home and telling me about this really strange kid in his drama class. When my son initially told me how everyone avoided this kid because he was really weird, I was sad and suggested to my son, perhaps he just needed some friends. My son only looked at me with that look and said “no, mom, I mean he’s really a freak. Then he told me how he dressed, always in black and he wore a mask to school. He refused to take the mask off when the teachers would ask him to. My son said he eventually talked to him occasionally over the weeks during the class.

About a month after the start of the semester, my son came home and told me that during class, this strange kid had whispered to him that he was going to come back to school and kill everyone. I told my son immediately to go to the office and report what the kid had said to him. He told me that he didn’t want to, because the kid would know it was him, and plus, my son didn’t’ think he was serious. I told him that he couldn’t make that determination, and regardless what he thought about the truthfulness or not, he needed to report it, period. Now reflecting back – I should have done it myself. My son, went to the office the next day and talked with his counselor and informed them. My son was treated more like a “tat o’teller”, than someone who may have helped prevent a future catastrophe, and his worst fears were realized. My son told me for the first time last night that this kid had approached him later on in school (nothing ever resulted from his threat) and said to my son “I know you were the one who told”.

This kid no longer attends the high school this year.

As I reflect back on that event, I know I would handle it differently now. I would have called up the school immediately, rather than leave it up to my son, and perhaps putting him in danger from recourse. However, it is so hard, to get anyone to take this sort of threat seriously, until after some tragedy unfolds. Whenever something seems so extraordinary, it is hard for people to listen and to believe. America has for such a long time, been viewed as a safe and secure place to live, but we are slowly evolving into a society that is accepting of more and more violence in our media, and entertainment, and as such our children are paying a price and that price could very well be their own lives.

Thursday, April 12, 2007

Prepare Yourself For Refinancing Warfare and Avoid the Pit of Despair- 10 Lessons I Learned

Last month I underwent a Refianance of my home. Not as horrible as having a root canal performed, but a close second.

I quickly discovered that there really is very little information available to you as a consumer to help you know what your rights are when shopping for a good rate. For the most part, I felt like Indiana Jones when he was dropped into the tomb looking for treasure, only to find a bunch of snakes.

When I searched the web for answers to my questions, I was at a loss. So, I will just share in ten steps of what I learned and hopefully, it can be of some help to someone. I am not an expert whatsoever, just a consumer who came out alive after swimming with the sharks.

1. Always get a GOOD FAITH ESTIMATE "GFE"- IN WRITING BEFORE SIGNING ANYTHING.

2 DO NOT ALLOW AN APPRAISAL UNTIL AFTER YOU RECEIVE A GFE.

3 ONCE YOU RECEIVE A GFE, contact another mortgage broker and ask if they can beat that GFE (now it gets fun).

4 ASK Mortgage Broker #2 for a GFE in writing.

5 Contact Mortgage Broker #1 and let them know how dissappointed you are that they gave you such a high rate and/or closing costs. Tell them, you have to go with what's best for your family unless they can give you a reason not to. (Make them come to the table).

6 Be bolder than I was and contact Mortgage Broker #3 and repeat steps 3 & 4.

7 If you need, take a night and sleep on it. They can wait.

8 Once you negotiate your terms with the broker of your choice (by going through every closing cost and insisting on an explanation that makes sense, proceed, and go forward with the appraisal, if necessary. (Ask the broker to pay for your appraisal or to eliminate the so-called "funding my next vacation" fees).

9 Ask for the Truth-In-Lending actual interest rate - it should only be slightly higher than your rate on the loan. If it is significantly higher, closely look at all the closing fees.

10 Ask the title company to send you a copy in advance of the final Settlement Statement. Compare it closely with your GFE. IF ANY fee is added or higher, contact your broker and request an explanation and hold them to their original GFE.

Tomorrow, I will post my Table of Loan Comparisons that I developed to compare each Good Faith Estimate.




Part II - Refinancing Tables


Rate

Origination fee

Closing Costs

Total Charges

Monthly

Cash Out

Loan 1







Loan 2







Loan 3







Loan 4








BREAKDOWN:


Items Payable

Items

Paid in Advance:

Items Paid in Reserve:

Title Charges:

Recording Fees:

Total

Loan 1







Loan 2







Loan 3







Loan 4







FOR CASH OUT REFI


Cost of finance per $1000






Loan 1

$






Loan 3

$






Loan 4

$







Current monthly payment

Home: $

Ins/Taxes:$

Total Charges

(Col. A)

Total Savings Per Mo.

(Col. B)

Total Mos to Break Even

(Divide Col A /Col B)

Mo. Savings after Break even point

Loan 1





Loan 2





Loan 3





Loan 4