Makes a Financial Difference in the
Lives of Individuals
Across
America!
|
Questions and Answers About Your Money
|
© 2001 - 2009 All Rights Reserved, The Credit Alternative Group, 26 Park St., Montclair, NJ 07042
Are my bank accounts safe?
Almost all bank savings, checking, and money market accounts and certificates of deposit are insured by the Federal Deposit Insurance Corp. for up to $250,000 per depositor until Dec. 31, 2009. (After that, it's $100,000.) Deposits in IRAs and some other retirement accounts are also insured up to $250,000 per owner. Credit unions are generally insured for the same amounts through the National Credit Union Share Insurance Fund.
What to do
Keep your balances within the coverage limits. Check the health of your bank and/or credit union with
'
Bankrate.coms Safe & Sound ratings.
If your bank fails, insured accounts will probably be assumed by a new bank. It usually takes no more than two business days to get your money. Keep copies of your statements and deposit slips, especially if you bank online, to ensure that the new bank's records are correct. See whether interest rates, fees, or terms have changed. If you have uninsured balances, you'll have a claim against the closed bank for the uninsured amount. As the assets of the bank are liquidated, you might receive payments.
I want to buy a home soon. How difficult will it be to get a mortgage?
A lot tougher than it used to be. Two years ago, you could buy a home without proof of income or a penny down. Now you'll probably have to submit W-2s and tax returns, and make a down payment of 20 or even 30 percent. You won't qualify if your mortgage payments would exceed 43 percent of your monthly pre-tax pay; in the boom, payments were allowed to be as high as 55 percent.
What to do
If your credit score is below 720, try to boost it by paying down other debt and correcting any errors on your credit reports. Save for a bigger down payment. Include some local banks in your search for the best terms; they have been less affected by the mortgage meltdown and might offer you a better deal.
Rebuild Your Credit - Restore Your Score - Smartly Manage Your Credit
My HELOC is frozen. What can I do?
Falling home values have led banks to cut or freeze the amount of credit available on existing HELOCs. Generally, the terms of such agreements allow them to do that. Even homeowners with excellent credit scores have been affected.
What to do
Show your lender a recent appraisal to prove that your home has held its value. If you're in the middle of a project and need credit to finish it, explain that to your lender. For example, if you had a $50,000 credit line frozen, ask for $25,000 to complete the project. If that doesn't work, try another lender.