Guide for Penny Pinchers

What is rampant, spreading like wildfire and can kill life as you know it? No, not a deadly virus (but close). Answer: Identity theft. My stepson, Aaron, was a victim of identity theft recently. Someone stole his bank cards, deposited fake checks into his account, then withdrew cash. The deposited fraudulent checks and overdraft charges hurt his credit, and he’s slowly recovering and rebuilding his score.

Tips to avoid identity theft:

1. Buy a shredder. Aggressively protect your social security, credit card or bank numbers.
2. Use a lock-in mailbox. This isn’t 100% safe, but it’s much safer than one without a lock.
3. Protect your out-going mail. Get it into the box or the hands of a postal clerk. Heavily trafficked offices often have out-going mail in the entryway. While this may save time, it’s not safe.
4. Keep receipts and compare to your statements when they come once a month. Banks make mistakes all the time.
5. Keep financial documents under lock and key (at the bank or in a home safe).
6. Don’t give out your social security card—ever.
7. Know what’s in your wallet. Do you know how many credit cards are in your wallet?
8. Don’t discuss detailed financial information on a cordless or cell phone. That information can be intercepted.
9. Monitor your credit reports. You can sign up for a monitoring service or do it yourself periodically. Your credit is one of your assets, so protect it.

Over the last several years consumers have started to request alternative financing to a traditional mortgage from lending companies. The mortgage lenders response to this overwhelming demand was the creation of hybrid loans. What exactly are hybrid loans you may be asking yourself? Hybrid loans include some of the following.

Piggy back loans are hybrid loans that allow consumers the opportunity to purchase a home with a smaller down payment and possible avoid having to have private mortgage insurance. The two loans are approved simultaneously and will generally result in lower payments per month then a traditional mortgage and private mortgage insurance.

Graduated payment mortgages are another hybrid loan option. This type of hybrid loan starts off with smaller payments that gradually increase over a period of five years. This might be a great financing option for individuals who expect their income to increase over the next several years however since early payments on this type of hybrid loan are applied to interest first it could cause the principal amount for you loan to increase.

Other great alternative mortgage options include government programs such as VA and FHA loans. These types of loan help first time home buyers, lower income consumers and veterans afford to purchase homes with lower monthly payments and little to no down payments.

Hybrid loans offer an excellent alternative for home financing to those that may not have their needs met by a traditional mortgage. Because of their more liberal qualifications and as many are tailored to fit specific needs more consumers are finding they are more easily able to finance the new home they have been seeking.