After several weeks in a row in which mortgage rates inched downward, loan costs skewed a bit higher as October drew to a close.
According to the latest survey from Freddie Mac, a major provider of funds for home loans, the average cost of a 30-year fixed-rate mortgage was 6.4 percent with 0.4 points for the week ending Oct. 26. That's up from 6.36 percent the previous week, and 6.15 percent a year ago.
(To reflect the true cost of a mortgage, borrowers should add the rate and the points as well as other fees together. A point is 1 percent of the loan amount.)
The rate on 15-year fixed loans averaged 6.1 percent as October ended with an average of 0.4 points. That, too, is an increase from 6.06 percent in the proceeding week and 5.69 percent a year earlier.
For one-year Treasury-index adjustable rate mortgages, the average rate was 5.6, up from 5.57 percent the prior week and 4.91 percent a year ago. And for five-year hybrid adjustables, the rate was 6.14 percent, up from 6.11 percent last week and 5.63 percent last year. The average number of points on these loans was 0.7 and 0.6, respectively.
Don't Be Fooled
Under the provisions of federal consumer law, if you want to obtain a free credit report from one or all of the big three credit reporting companies, go to AnnualCreditReport.com . Accept no substitute.
By law, every person is entitled to one free credit report each year from each of the three major credit reporting agencies: Equifax, Experian, and TransUnion.
A credit report is a sort of fiscal fitness statement of your credit habits. It names your credit accounts, identifies them by type and tracks balances, credit limits, payments, available credit, open-or-closed status and other information that reveals how well or how poorly you pay each account. The report also documents credit requests and notices of liens, judgments and other "derogatory" remarks, remarks from the consumer, and other information.
When you apply for a mortgage or other credit, the creditor takes a look at your credit report, among other documents and data, to determine if you qualify for credit and to determine how much credit it will grant you. Consequently, it's a good idea to keep tabs on your credit report so you can correct any mistakes that could adversely affect your application, and to take steps to improve your credit whenever possible. An unblemished credit report not only gives you fast access to credit, you also pay less in interest than you would if your report contains blemishes.
Under federal law, official, free access to your credit report is available through a single website, AnnualCreditReport.com, by phone (877-322-8228); by mail (Annual Credit Report Service, P.O.Box 105281, Atlanta, GA 30348-5281), or by filling out the request form on the Federal Trade Commission's website (ftc.gov ).
Beware of "impostor" websites which pose as "free credit report" websites but which are questionable marketing gimmicks designed to enroll you in credit report monitoring and other credit services in exchange for granting you your "free" credit report.
By the way, a credit report is not the same as a credit score, which is a numerical analysis of your credit worthiness, and it not available under the free report provision.
America Is On the Move
Nearly 40 million people -- 14 percent of the population -- changed addresses in 2005, according to the Census Bureau.
Only 3.7 million moved to another place because they changed their status from renter to owner. Some 3.1 million moved to establish their own household, and 4.2 million switched places because they took a new job or were transferred. About 1.4 million moved to be closer to work, and 2.8 million moved because of a change in their marital status.
According to the government, 7.1 million people move because they wanted a new or better home or apartment, and 1.6 million moved to change neighborhoods. In other words, they moved up. But 2.6 million moved down to something less expensive. Finally, about 900,000 folks moved for health reasons or for a better climate.
Moving, of course, is a chore. Yet, nearly three of every ten people Mayflower Transit moved last year were moving for the second time in last five years. Sixteen percent were moving for the third time in five years, and 6 percent switched places for the fourth time. Either they're real Nomads or simply certifiable.
Taxing News
If you regularly count on Goodwill, the Salvation Army and other charities to find homes for what won't fit on you or in your attic -- all while getting a charitable tax deduction -- do your annual spring purging by the end of the year. Especially if you tend to fudge the value of donated items.
In 2007, the Internal Revenue Service will hold you accountable for accurately documenting the value of donated goods under a new tax edict tucked away in the Pension Protection Act of 2006, signed by President Bush this summer.
The broader act is aimed at curing the ailing defined-benefit pension system, but it includes a host of unrelated provisions, including one that requires accurate documentation when you claim tax breaks for gifts, including household goods trucked off to charitable organizations.
Under the current law, the IRS pretty much takes you at your word when you claim a tax break for donations of money or items you've valued at up to $250. Documentation is required for larger amounts and, of course, if you are audited. Along with newly required documentation, the IRS will be beefing up enforcement of existing penalties that rain down on you if you overstate the value or adjusted basis of donated goods.
Homes of the Rich and Famous
Internet voyeurism has become many a desk-jockey's favorite sport. Searching for information about friends, old classmates, current partners or celebrities is a top trend for those who surf the world wide web. Technology has caught up with our curious nature and multiple sites are now available to satisfy our snoop. Who hasn't used their search engine to hunt up an old high school flame, someone you do business with or perhaps even a blind date?
One of the new twists on the trend is the ability to look up people's homes and find out what they are worth. And why not? After all, who doesn't want to know how much their boss' house cost, or how many square feet the guy that brags incessantly about his new mini-mansion has and how much he paid for it?
Web-savvy surfers use Reply.com's easy new portal to view aerial photographs, housing specifications, and pricing on acquaintances and celebrity homes. Look up the address on celebrityweb.com and then enter that data at Reply. You'll find out in a New York-minute how much the joint is worth.
