Finance Globe

Is it a good idea to prepay your mortgage?Mortgage prepayment is a topic that financial experts often don't agree on. Many financial advisors say that you can get a better return on your money if you invested the extra cash, rather than use it to pay additional to principal. Some money gurus argue that it's better to pay off a mortgage for the security of a sure thing and a guaranteed return on your money.Homeowners who've...

Treasury Secretary Henry Paulson announced on Sunday that the government will take charge of the Federal National Mortgage Association (FNMA), commonly known as Fannie Mae, and the Federal Home Loan Mortgage Corporation (FHLMC), commonly know as Freddie Mac. The two government-sponsored enterprises (GSEs) are responsible for buying or backing about half of all U.S. mortgages, and are vital to the housing market.Referring to the Treasury's earlier plans, in July, to lend additional funds to the GSEs,...

The years of unsolicited junk-mail you've received from credit card issuers and loan companies may have finally paid off. Millions of American consumers could be awarded free credit monitoring services from TransUnion, one of the three major credit reporting agencies in the U.S.A class-action lawsuit accuses TransUnion of selling personal and financial consumer information to third parties for targeted marketing. TransUnion discontinued the practice in 2001 and does not admit to wrongdoing or breaking the law,...

More relief for drivers in the U.S., gas prices are dipping lower for the 7th week in a row. The average price for gas in the U.S. is $3.67 a gallon for regular unleaded. Crude oil prices are down 25%, now at a five-month low. It reached its all-time high of $147.27 in July. Analysts predicted in May that crude oil may top $200 a barrel, but the current price of $109 a barrel tells a...

A Lesson LearnedOverdrafts and bounced checks can be extremely costly, severely punishing a consumer for a simple mistake in record-keeping. I clearly remember the first time I bounced a check, and it ended up costing me so much that I've never forgotten that lesson.I was a teenager with a part-time job, so my checking account balance was never for more than a few hundred dollars at any given time. Low balances make it especially easy to...

Record numbers of foreclosures in the U.S. have presented scam artists with an opportunity to take advantage of desperate homeowners when they're already down. The Federal Trade Commission issued a warning to consumers about crooks promising to help troubled homeowners avoid foreclosure. These scams can be very elaborate and seem legitimate to the unsuspecting homeowners. Then the crooks disappear with the homeowner's much-needed cash by the time they realize that the scam artist has done nothing...

Paying off debt is a concern for many consumers, and there are different opinions on the best way to go about doing it. Mathematically, it makes more sense to first pay off the debts that have the highest interest rate, and thus, are costing you more money in the long run. But, handling finances and debts is more than mathematics; human emotion is responsible for many of the financial decisions we make. Feeling discouraged from making...

Money management should be a simple task. It's all mathematics; such a clear-cut approach should guarantee success. But, no, it's not that simple. Throw some human emotion into the formula, and you often have, well, confusion.Money represents so much more than the dollar bills in your wallet or the numbers on your bank statement. To many, it represents freedom, power, control, and security. Some may feel shame, guilt, frustration, or anger when feel they don't have...

Credit utilization ratio - a significant factor in your credit scoreMost consumers who keep a close eye on their credit score know exactly what a credit utilization ratio is; it's the percentage of your total credit limits that you actually use.A balance of $1000, with a $5000 total credit limit on all revolving accounts, equals a 20% credit utilization ratio.A low credit utilization ratio is good for your credit score; it's recommended to keep it under...

Inflation rates in the U.S. have risen faster than economists have predicted. According to the Bureau of Labor Statistics of the U.S. Department of Labor, the Consumer Price Index for All Urban Consumers (CPI-U) rose at a rate of 5.6 percent for the twelve-month period through July of 2008. This is the fastest leap in consumer prices since 1991. Producer prices have escalated by 9.8 percent, the most since 1981.A nearly 30 percent increase in the...