Protect Your Home While Traveling
By Kimberley Edgar

Ask a neighbor to park a car in your driveway so it appears your house is busy with activity while you’re traveling.

  Members looking to enjoy some well-deserved R&R also can enjoy peace and security knowing their homes and cars are protected while they’re on the road.
  A good first step is to speak with one of AAA’s trusted insurance agents about protections and coverages. But here’s some advice from AAA’s Senior Vice President of Insurance Frank Doyle.
Rent a car
  Instead of worrying about possible damage to your vehicle while navigating the nation’s roads away from home, consider renting a vehicle while you’re away.
But if you choose this option, don’t assume you have the insurance coverage you need only to learn later you don’t.
  “The last thing you want to have happen is to drop off the car at the end of your trip and experience a world of hurt because they want to secure the value of the vehicle on your credit card,” Mr. Doyle said.
Howdy Neighbor
  If you’re friendly with your neighbors, let them know you’re going to be away and how to get in touch with you should anything arise. If your relationships are strong, you might ask them to park their cars in your driveway while you’re away so it appears as though the house is busy with activity. Family and friends are another good group to tap if you’re uncomfortable divulging these details in your neighborhood.
Shut off your water
  This is more applicable in winter months when the snowbirds vacate their homes in the Northeast and head to Florida.
Toys
  Those trampolines, motorcycles, bicycles and pools should be secured so they don’t leave the premises after you do.
Alarms
  Be sure to turn them on while you’re away. And, of course, don’t forget to lock all doors and windows.

Lenders are Stricter Today, But Mortgages Are Still Available
By Kimberley Edgar

Attractive interest rates and the drop in home prices make this a historic, once-in-a-generation time to buy.

  AAA is helping the United States mark National Home­ownership Month this June with tips for home-owners and first-time buyers alike.
“We’re here to advise members and put them in the most appropriate mortgage possible,” said Deborah Imondi, Vice President of AAA Southern New England Bank.
First-Time Buyers
  Rates remain attractive – in the 4- to 5-percent range – for those looking to buy their first homes.
That, coupled with the drop in prices for many homes on the market, make this a historic, once-in-a-generation time to buy – despite the challenges the mortgage industry has faced in recent months.
  “Is there still money to lend? Yes, there is, but lenders are stricter,” Ms. Imondi said.
She advises first-time homebuyers to keep their paperwork – pay stubs and statements for credit cards and for checking or savings accounts and other assets – on file to demonstrate their income level and to paint their whole financial picture for lenders.
  Ms. Imondi reminds homebuyers – especially those trying for the first time – that an important part of buying a home is your credit score, and AAA has the tools to help you determine the score and make recommendations to boost it if that’s required.
Refinancing
  Homeowners whose properties have lost value might want to consider refinancing up to a loan-to-value ratio of 105 percent.
  The modification is permissible for those who owned a mortgage before Jan. 1 and through 2012. To apply for the program, you must be current in your mortgage – not delinquent.
  Ms. Imondi advises this might be particularly advantageous for anyone who’s seen changes in income – reduced overtime or number of hours worked, the loss of a second or third job, or involvement in a scenario where continued payment of the mortgage at the previous level could induce an imminent delinquency.
Members can visit www.makinghomesaffordable.gov for criteria on program eligibility.
Reverse Mortgages
  Homeowners at least 62 years old are eligible to tap into the equity they have built over the years and take a reverse mortgage – and the loan-amount limit has risen again, for the second time in less than a year.
  The ceiling rose to $625,500, from $417,000, and means seniors have potentially more equity available to them if they have a home with higher value.
  This helps people who own higher-priced homes or live in areas where houses carry higher values, and where they may have maxed out their equity.
  With the lower cap, they’d pay the same closing costs but not get as much equity. Now, the additional amount is available at the same price.
  The U.S. Department of Housing and Urban Development rules governing reverse mortgages permit a homeowner to use the proceeds from Home Equity Conversion Mortgage refinancings – the majority of reverse mortgages in the nation – to buy additional property, though the mortgaged property must be their primary residence, Ms. Imondi said.

Massachusetts Retains Insurance Appeals Board

Follow These Tips for Keeping Your Credit Card Safe

Be skeptical of all e-mail that directs you to a Web site that asks for your credit-card or personal information.

  Last August, the U.S. Department of Justice announced the indictment of 11 people involved in the largest credit-card-fraud and identity-theft scheme ever identified.
  More than 40 million credit- and debit-card numbers were stolen. More than eight million Americans fell victim to such scams in 2007, according to a Javelin Strategy and Research report.
  At a time of a severe credit crisis, protecting your credit score is even more important.
AAA Financial Services offers the following 10 tips to keep your credit card safe.
  1. Safeguard your credit by treating your cards like cash. Keep them securely in your wallet or at home when not needed.
  2. Review your monthly statements in a timely manner to ensure all charges are accurate, and check your account online frequently. This will also help victims of skimming detect fraud immediately. Skimming often occurs in restaurants and bars where credit cards are out of sight of the cardholder. Secret copies of the magnetic strip are made to produce a counterfeit card.
  3. Report billing errors and lost or stolen cards immediately to resolve problems in a timely manner and reduce possible fraudulent activity.
  4. Be skeptical of all e-mail that directs you to a Web site in which credit-card or personal information is entered. One of the largest forms of fraud is “Phishing,” in which victims receive an e-mail that directs you to a phony Web site that is an exact copy of a real site and asks users to input personal and financial loss or theft.
  5. Carry credit cards as needed. Reducing the amount of cards you carry will decrease exposure to loss or theft.
  6. Keep credit card numbers secure – do not give out your information over the phone unless you are familiar with the merchant or you have initiated the call.
  7. Track your usage by keeping receipts for your ATM, credit and debit cards.
  8. Keep a list of your credit-card account numbers, issuer contact information and the three credit-reporting agencies in a safe place to allow for quick reporting if they are lost or stolen.
  9. Shred pre-approved offers, card receipts and anything that displays your credit-card information before putting them in the trash.
  10. It is wiser to use a credit card, rather than a debit card when making purchases over the Internet. When you use a debit card, it is your money at stake and not the bank’s.

Great Time to Refinance Auto Loan

With today’s low interest rates, there’s a good chance you could save some money by refinancing your auto loan.

  Have you taken a look at the details of your car payment lately? With today’s low interest rates, refinancing may present a great opportunity for you to save some money.
  “Auto-loan rates are still very low,” said Gerald Zeoli, AAA Southern New England Financial Services Director. “Whether you are trying to refinance your existing loan or purchasing a new or used car, there’s never been a better time to take advantage of these low rates.”
  Inching down a loan’s interest rate even a percentage point or two, say from 7.9 percent to 5.9 percent, can reduce your monthly payments to save hundreds of dollars in interest over the life of the loan.
  A vehicle refinance can lower your loan cost without incurring a trunk-load of fees; there are no application fees, no down payments, and no closing costs.
  However, you need to ensure your existing loan has no prepayment penalties. Vehicle refinancing carries the most benefit when a simple-interest loan with no prepayment penalties is refinanced into a simple-interest loan with a lower rate.
  Here are examples of how vehicle refinancing works. Let’s say you bought a new car last year and financed $30,000 for five years at 7.99 percent; it would result in a monthly payment of $608. If, after one year, you refinance at 5.29 percent, your payment would drop to $576 a month — saving more than $1,536 over the life of your loan.
  Even refinancing a $16,000 loan after one year — dropping from a 7.99 percent APR to 5.29 percent APR — will save $816 over the life of your loan. The bottom line is if you find an interest rate that is lower than your current interest rate, you are going to save money by refinancing.
  You can save even more money and pay off your loan early, by making monthly principal payments in addition to your regular monthly payment. By reducing the principal much more quickly, you multiply the benefits of refinancing.
  Refinancing a car can be a simple, moneysaving process — even more so for consumers going online for their deal. According to Forrester Research, two-thirds of those who have applied for auto loans online say it’s more convenient than on the phone or in person. Plus, the savings online can be significant.
  AAA offers some of the lowest rate vehicle loans available. To apply or check today’s rates, simply visit AAA.com.

In the Market for a Home This Spring? Follow These Steps
By Kimberley Edgar

A mortgage calculator can help you determine how much you can afford on a home — before your heart’s set on one.

  You’re looking to stake your claim and buy a home. Months of declining prices have made this a good time to shop around.
  But deciding to buy a house is the first step, and the AAA Home Loan Center at AAA.com/mortgage provides a wealth of information to help you navigate the process of buying your home sweet home.
  “People really need to educate themselves,” said Deborah Imondi, Vice President of AAA Southern New England Bank. She offers several tips to do so:
  • Before you set your eyes – and your heart – on anything, determine how much you can afford. “Looking in the correct price range is important,” she said. The mortgage calculator at AAA.com is a handy tool to help you figure how much you need for a down payment and what your payments will be.
  • Get a copy of your credit report, and clean up your credit record as best as you can.
Lenders will check your record to see whether they’re willing to risk loaning you money and to determine what interest rate to charge you. You can request your free reports at www.annualcreditreport.com or by calling (877) 322-8228. AAA also makes these free reports available for people who attend one of AAA’s free homebuyers seminars.
  • Find a good realtor to represent your interests. The realtor handling the sale generally seeks the seller’s best interest. Ask friends, relatives and coworkers to recommend a buyer’s agent, and check to ensure the agent is experienced, licensed and associated with multiple listing services.
  “Going with a real-estate agent who knows the area is important,” Ms. Imondi said. “They can provide insight you might not otherwise get from someone who’s just interested in the one transaction sale.”
A good buyer’s agent also might help you find an inspector and a title company.
  • Have the property inspected. “If someone’s buying a home in the open market, always make that subject to a home inspection,” Ms. Imondi said.
Inspections cost $300 to $500, and the money is well spent. Plan to be present for the inspection, which might take a few hours but will reveal the condition of the home, red flagging potential problems, providing estimates of what it will take to cure them and protecting you from buying a home needing major repairs.
  The inspector will examine heating and plumbing, check the water pressure and look for structural defects. If the report detailing his findings points out the need for a major repair, you may consider re-negotiating the sales price, Ms. Imondi said.
  • Secure homeowners insurance. Lenders require you have this to buy a home. Please see the story below for more on home owners insurance.

Don’t Forget About Life Insurance
By Kimberley Edgar

  Anyone who’s played “The Game of Life” knows it’s important to have proper insuranace coverage. Otherwise, out-of-pocket expenses in the face of various unforeseen tragedies could be considerable.
  But life’s no game, and tragedy isn’t limited to a board game or the pages of fiction novels. The worst time to find out you’re under-insured is after a loss.
  Having the proper life-insurance coverage in place not only will give policyholders peace of mind protection, but also pay dividends should the unthinkable occur.
  “Life insurance is an important part of anybody’s financial plan,” said Frank Doyle, CPCU, CLU, Senior Vice President, AAA Insurance Agency.
Term-life insurance is least expensive, most affordable and most popular, but there are some cases where permanent life insurance is the best choice.
  Mr. Doyle recommends buying life insurance as early as possible to lock in the coverage and secure lower rates, even after graduation.
“That’s often when people don’t think about it,” he said.
  It’s wise to buy life insurance when you enter the workforce — even if your employer offers a policy at no cost to you. If you change jobs, that policy will not follow you.
  “When you’re young and healthy, you can get a term policy for very few dollars,” said AAA Managing Director of Insurance Agency Sales H.C. Hansen.
  People especially should consider picking up the coverage when they marry, buy a home or have children.
  “It makes sense to look at it when life changes, and insurance bought when they were 24 will not meet their needs when they are 44,” Mr. Doyle said.
  He suggests people evaluate coverage needs every five years.
Sometimes people in their early to mid-40s get additional policies.
  “I’ve had people come to me with only 10 years left on their mortgage, but they’re sending their kids off to college, and they want to ensure they’re covered through their children’s college years,” said Brenda Silva, AAA Life Insurance Specialist.
  And there are those who have retired or are thinking of retiring with mortgages paid and their kids out of the house. These couples don’t need a $500,000 term-life policy and are looking for something smaller to cover their funeral expenses.
  That’s when a $20,000 whole-life policy might be appropriate. “All these trigger the needs for life insurance,” Ms. Silva said.

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