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Should You Lease Or Buy Your Next Car? It May Affect Your Mortgage.

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Should you lease a new car, or should you buy one? Like most financial questions, the answer depends on your situation. For some people, leasing a car presents distinct economic advantages. For others, buying a car is the way to go.

There’s plenty of online material to help you choose your optimal path, but this 3-minute piece from NBC’s The Today Show serves as an excellent summary. In it, you’ll learn about the basics of leasing a car, and for whom leasing can be a great fit. You’ll also hear reasons to avoid a lease completely.

The NBC interview makes all of the following points :

  • Leasing allows you to drive a car that may be “too expensive” to purchase
  • Leasing puts you in a new car, with the latest safety features and gadgets, every few years
  • Buying a car means that you have no mileage limits, and can sell at any time

For many people, it concludes, buying a car is preferable to leasing one, with a notable exception being those people who can claim their car or truck as a tax deduction. Be sure to check with your tax advisor if you plan to take that route.

However, for another group — homeowners and active home buyers — leasing a car can invite mortgage approval trouble. This is because a car lease payment is assumed by a mortgage underwriter to be a perpetual debt; one that never reduces or gets extinguished. When a lease is complete, it must be replaced with a new lease, and so on.

Therefore, no matter how many payments remain in a lease, mortgage applicants must use the full car lease payment for purposes of a mortgage approval.

By contrast, for people whom are owners of their automobiles, car payments must only be added to debt ratios if more than 10 car payments remain until the car’s loan is paid-in-full. For homeowners and buyers in St Paul , this can improve debt-to-income ratios and support a higher purchase price on a home.

There is no firm rule for whether it better to lease a car or to own one. The arguments for both sides are compelling and reasonable. Start with the video, then do your own research.

How Long Will Foods Last In A Refrigerator?

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Throw out spoiled foodsDo you keep “past due” foods in your refrigerator? You wouldn’t be alone. A study from the Home Food Safety website shows that more than 40 percent of people either have never cleaned their refrigerators, or can’t remember the last they did.

Past due foods can lose their taste, give off bad odors, and/or make you ill — just a few of the reasons to remain vigilant about your refrigerator’s perishable foods.

Still nursing that ketchup from last Labor Day’s grill out? Put it in the trash. Storing canned vegetables that you bought last year? Get rid of them today. 

Watching that freezer burn develop on some of your cold-storage foods? Pitch them in the garbage. 

There’s very little good that comes from eating food that’s been damaged, spoiled, or left to rot slowly. That’s one of the reasons why FoodSafety.gov has created its “Storage Times For Refrigerator And Freezer” chart. Listed by food category, it tells you how long a particular food type can remain “safe” in your refrigerator, and in your freezer.

A sampling of the foods, plus their recommended maximum storage times, includes :

  • Deli-sliced luncheon meat : 5 days in the refrigerator; 2 months in the freezer
  • Hamburger meat : 5 days in the refrigerator; 2 months in the freezer
  • Leftover pizza : 4 days in the refrigerator; 2 months in the freezer

In all, the list contains recommendations for nearly two dozen common foods. 

In addition, the FoodSafety.gov website maintains a separate safety information section for egg and egg-based products.  Egg storage safety is important because more than 400 people contract salmonella each month nationwide.

From scrambled eggs and pies, to quiches and egg-yolk substitutes, you’ll know how long to keep your food, and how long until you should throw it out.

5 States Home To 50% Of Foreclosure Activity Nationwide

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Foreclosure stats July 2012Foreclosure activity re-filling pipelines nationwide.

According to data from RealtyTrac, a national foreclosure-tracking firm, the number of foreclosure filings dipped below 192,000 in July 2012, a 3 percent decrease from the month prior.

RealtyTrac defines a “foreclosure filing” as any foreclosure-related action, including a Notice of Default, a Scheduled Auction, or a Bank Repossession.

July marks the 22nd straight month during which foreclosure filings fell on a year-over-year basis. At some point soon, however, that streak may end. This is because, for the third straight month, on an annual basis, foreclosures starts are on the rise.

More than 98,000 homes started the foreclosure process in July, a 6 percent increase from July of last year. Connecticut, New Jersey and Pennsylvania experienced the biggest increases, rising 201%, 164% and 139%, respectively.

Each is a judicial foreclosure state, which means that foreclosures must go through the state court system prior to auction.

Nationwide, just a few states accounted for the majority of July’s total foreclosure activity. 5 states were home to more than half of all tracked activity, according to RealtyTrac.

  • California : 21.9 percent
  • Florida : 13.3 percent
  • Illinois : 7.2 percent
  • Georgia : 5.7 percent
  • Texas : 5.2 percent

Collectively, these 5 states represent just 33 percent of the nation’s population.

In contrast to the five states above, the bottom 14 states accounted for just 1 percent of the nation’s foreclosure activity, led by North Dakota. In North Dakota, just 3 foreclosure filings were made in July. Other “fewest foreclosure” states in July included District of Columbia (7 filings), Vermont (31 filings), and South Dakota (63 filings).   

For home buyers in Minneapolis/St Paul, with more foreclosed properties expected to go for sale this year and next, there will be some excellent “deals” and discounts — foreclosed homes typically sell at discounts of 20% or more as compared to comparable, non-distressed homes. However, foreclosed homes are often sold as-is, which means they may have defects.

Before placing a bid on a foreclosed home, therefore, make sure to have an experienced real estate agent on your side. Buying a foreclosed home may save you money at your closing, but may cost you money longer-term. Minnesota Homes and Foreclosures

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