Finance Globe

In an effort to prevent another mortgage crisis, the Consumer Financial Protection Bureau has published a new rule that’s intended to ensure that homebuyers end up with mortgages they can afford, barring unforeseen changes in income or other expenses.We know the mortgage crisis was caused, in part, because many homebuyers allowed to take out mortgages they couldn’t afford over the long term. Some of the borrowers qualified for adjustable rate mortgages with initially low interest rates,...

Americans who were able to get a mortgage and bought a home last year took advantage of the low prices and great mortgage rates in the most affordable housing year on record. Housing affordability set an annual record in 2012, the National Association of Realtors reported on Wednesday.In 2012, the NAR’s National Housing Affordability Index hit its record high at 194, topping the previous record of 186 in 2011. The index is based on the relationship...

Your mortgage lender may give you the option of skipping a mortgage payment, for example, at the beginning of your mortgage or refinance. While it may seem like they’re doing you a favor, skipping that payment could actually cost you thousands of dollars by the time you’re done paying off your loan. Lender-Allowed Skipped Payments Skipping a payment, one that your lender is allowing you to skip, is easy in the short-term, but it actually costs...

Almost two-thirds of Americans admit that their financial troubles are of their own doing, according to a December poll by the National Foundation for Credit Counseling. Of poll respondents, 63% said their financial woes self-inflicted for reasons such as overspending or being financially unorganized, and 37% said their problems were caused by events beyond their control such as job loss or medical bills. "The poll results are encouraging, as the first step to correcting a problem...

Credit card delinquencies were down in 2012, the lowest in several years, but experts predict that trend won’t last throughout 2013. Credit card users are at risk of losing money on late fees and penalty interest in addition to credit score losses from late payment reporting to the credit bureaus. Credit card, auto loans, and student loans debt balances all continued to increase through the end of 2012. Increased debt balances means increased monthly debt payments....

Ten U.S. banks have agreed to pay $8.5 billion to settle charges that they wrongfully foreclosed on millions of homeowners in the aftermath of the housing bust, the Federal Reserve reported on Monday. Banks involved in the settlement are Aurora, Bank of America, Citibank, JPMorgan Chase, MetLife Bank, PNC, Sovereign, SunTrust, U.S. Bank, and Wells Fargo. Four other banks - HSBC, Ally, EverBank and One West - are still in negotiations.The sum includes $3.3 billion in...

Think you know about credit cards? Think again. Credit cards woo you and make you feel special, but certain things about credit cards you can’t take for granted. For example, you can't assume that... You’ll get approved just because you got a pre-approved offer. The credit card offers you receive in the mail are more like invitations to apply. The credit card issuer likely obtained your information from a prescreened list, but they haven’t actually approved...

Now that the holidays are over and the dust is settling, you may look at your bank account or check your credit card balance only to realize you spent far more than you intended to. It happens to many people every year and not just around the holiday season. What do you do when you realize you blew your budget? Here are a few suggestions. Assess the damage. Maybe it’s not as bad as you think....

When you’re starting out with brand new credit or you’re rebuilding after a bout with bad credit, odds are your current credit cards aren’t the best. People with new credit and bad credit typically have the least attractive credit card offerings, low credit limits, annual fees, and high APRs. You have to start somewhere, right? Once you’ve been using a “starter” or “rebuilder” credit card responsibly for several months, you may be ready to upgrade to...

There’s something so refreshing and motivating about the beginning of a new year. It’s why people pick this time of year to make major changes to their lifestyles – quit smoking or drinking, lose a few pounds, spend more time with the family, do better at work, stop procrastinating. The list goes on and on. Don’t forget to put a few of your financial bad habits on the list of things to leave in the old...