Kevin Colby: News, culture, political blog

Some interesting articles from Clark Howard’s website:

Americans now saving a nickel out of every dollar

CLARKONOMICS: Over the last several years, we as Americans became “negative net savers” — a pointy-headed term that simply means we spent more money than we made. It got to the point where the average family debt versus income had roughly doubled in less than 10 years.   Read the full story.

Cash-out refinances going away as of April 1

Clark has always despised cash-out refinances — the kind where you refi your mortgage for more than you owe so you walk out with cash. This was very common over the past 10 years and it’s been a part of the foreclosure problem.  Read the full story.

Dollar cost averaging through the Great Depression

CLARKONOMICS: Dollar cost averaging is an idea that Clark has touted a lot recently. Yet many people are still skeptical about this concept of putting equal amounts of money into the market month-by-month — much like you would by making a monthly or bi-weekly contribution to your 401(k) at work.  Read the full story.

Understanding the federal homeowner bailout may be confusing so here is some information for you:

There are two scenarios under which the “Making Home Affordable” program could possibly work for you. The first is if you’re behind on your mortgage, and the second is if you’re current.

Let’s examine the first scenario. If you can not afford payments and can not refinance for whatever reason, you will have the opportunity to have your loan temporarily reduced to 31% of your monthly income. This applies to homes valued at up to $759,750 in most areas of the country. Your interest rate may drop to as low as 2% for the next 5 years!

Under the second scenario, those who are current on a mortgage held by Fannie Mae or Freddie Mac will also be allowed to refinance — as long as they’re not more than 5% upside down in their home. (Note: This does not include a second mortgage). The new loan you’ll get will likely be re-written to an interest rate of around 5.125%.

To determine if you’re loan is held by Fannie Mae or Freddie Mac, simply follow our web links or call them directly. Contact Fannie at 1-800-7-FANNIE and Freddie at 1-800-FREDDIE from 8 a.m. to 8 p.m. ET. Start with Fannie Mae — they’re the larger of the two.

And you may also be eligible for assistance even if your loan is not with Fannie or Freddie. That’s up to your individual lender, so get in touch with them to find out if you qualify.