When I read the article at CNN Money, I felt pretty good about it:  “No More Retroactive Credit-Card Rate Hikes” … sounds great, right?!  New rules for these companies that squeeze every drop of blood out of those of us who are foolish enough to use the cards (Yes, me. Probably you, too).

Then I read it again.  RETROACTIVE credit card rate hikes?  Say what?  Credit card companies were able to retroactively change your rates for purchases already made?  This is outrageous!  I guess it’s good news, then, that the practice is being put to a stop.

Also changing are random billing dates - they will now have to be billed at the same time every month.  In addition, the due date TIMES will conform to one time.  For example, one bill could be due at 1:00 p.m. EST on the 15th of the month, while another could cut it off at 2:33 p.m.  Ignorance on my part is not bliss… I had always been under the assumption that as long as something was postmarked by the day it was due, you were in the clear.

Personal finance editor Gerri Willis writes,

And although 45-days notice is required before making any changes under the new law, your card can still be closed or your limit lowered without your input.

Also watch out for fees! With credit-card companies trying to replace lost revenue, fees are everywhere. There are NO restrictions on the types of fees that credit-card issuers can charge, from dormancy fees to annual fees, and even fees to receive a paper statement.

She is right - READ EVERYTHING you get from your credit card company.

The housing market continues to struggle as home prices fall and mortgage applications drop. The Market Composite Index, which measures the volume of mortgage applications each week, dropped this past week. One of the biggest reasons is the fact that the refinancing portion of the index dropped.

Apparently, even though mortgage rates are low, people are reluctant to refinance their homes. This is causing mortgage applications to drop. Perhaps some are waiting to see if mortgage interest rates will drop back below 5%, since mortgage rates rose last week. Another issue is that home values have not been rising, and do get the 80% loan to value ration that many mortgage lenders are asking for is difficult.

Those with mortgages serviced by Fannie Mae or Freddie Mac, though, can take advantage of a refinance program from the government that allows a 125% LTV.

With signs of economic recovery showing, there are concerns that inflation could come with economic growth. This is a common thought, since economic growth often means that prices rise as well, eroding the purchasing power of the dollar. And, indeed, an economist at RBS Securities Inc. believes that inflation is on the way, reports BusinessWeek:

“Inflation will start to tick up again as we get stronger growth,” Stanley said today in an interview on Bloomberg Radio. “I don’t think the Fed is ready to own up to that.”

As a result, there are some expectations that the Fed will have no choice but to raise interest rates in order to combat inflation. It is possible that the Fed will raise rates to 3% by the end of 2010, from their current rate at between 0% and 0.25%.

For savers, this is good news, since it means that they will see a higher yield on their cash investments. For borrowers, though, it means that they will have to pay more in interest charges. If you have a variable mortgage rate, it might be time to refinance. If you have credit card debt, it is best to pay down as much as you can before rates move even higher than they already are.

When it comes to getting a mortgage, you want to make sure that you are getting a good deal, and that you are choosing a mortgage lender that can help you through the process. This can also be helpful when you are looking to refinance. As you choose a mortgage lender, it is a good idea to shop around a bit first. Chris Bibey, at the Bankruptcy & Foreclosures blog, offers three tips that can help you as you choose a mortgage lender:

1. Consider reputation: Look for a mortgage lender with a good reputation. You can usually find information on banks and brokers. Get references from friends and relatives.

2. Look for a low mortgage interest rate: This is probably the most important aspect of your home mortgage loan. Shop around for a mortgage lender offering a low rate. You can also look for other helpful amenities like reduced closing costs. You should also consider a mortgage lender that is knowledgeable about different programs.

3. Don’t be too hasty: Even though you may want to move through quickly, make sure you take some time to carefully review your mortgage financing options, and choose the mortgage lender you are most comfortable with.

Many people choose not to make financial New Year’s resolutions, fearing that they won’t keep them. I say go for it. Those who make resolutions are more likely to accomplish the changes they desire than those who don’t resolve on anything. Last year, I made a resolution to refinance the house. I didn’t get around to it. But 2010 is the year. Mainly because I’m afraid that interest rates will rise and I’ll have missed the boat.

In order to reach my goal, though, I’ve got to do a couple of other things:

* Make sure that my credit score is up to snuff. So I’ll check it soon and then see if I need to have errors removed from my report, and do something else to get a little boost.

* Have the house appraised. An appraisal will be needed to asses my current loan to value ratio. I haven’t been in the house very long, so I don’t have a lot of equity, but I know I’m not upside down.

* Look at my options. Interest rates are low enough that I can refinance to a 20 year loan and pay only a little more than I am paying now per month. So that might be a possibility rather than refinancing to a 30 year loan.

I’ll also have to actually go into the credit union and talk to someone about it. And while I’m at it, I’ll probably ask about a Health Savings Account, since that’s another one of my financial New Year’s resolutions.

Today is Christmas Eve. Hopefully, you are enjoying the gifts of family and love. And, if you bought a home this year, the gifts of a tax credit and low mortgage interest rate!

Merry Christmas!

No, the mortgage market hasn’t completely recovered. However, mortgage applications are on the rise again, and lenders are starting to take a few more chances. Some are starting to offer teaser rates again. These low interest rates make it possible for you to initially be approved for a loan, and then a few years down the road the rate resets, and you have a higher payment.

This isn’t just happening with new home mortgage loans; it is also becoming popular again with mortgage refinancing. You can refinance to a low, low interest rates for around five years, and then rate increases at that time. If you can’t refinance again, then you are in trouble as the rate resets and you pay a new, higher interest rate.

So, before you agree to such a loan, it is a good idea double check your finances. Make sure you can afford the mortgage payment amount for after the reset. It’s a nice thought that you will earn more money by then, but as many are finding out right now, that doesn’t always work out. So base your mortgage decisions, from buying a new home to getting a refinance, on what you can comfortably afford now.

The economy continues to struggle toward recovery with the latest jobless claims numbers in today. Initial claims rose more than expected today, belying yesterday’s Fed statement. However, the news isn’t all bad. MarketWatch reports on the silver lining associated with the latest jobs numbers:

Ian Pollick, economist at TD Securities, said that the rise in jobless claims was unsettling but that he was comforted by the fact that claims remain below the 500,000 mark.

Despite the increase, analysts said that claims remain on a downward trend.

So it appears that things, in general, are moving in an overall positive direction for the economy. As a result, then, it is little surprise that mortgage interest rates continue to inch upward.

After spending some time below 5%, most mortgage lenders are quoting rates above 5%. With the prospect of economic recovery combining with the fact that housing starts are rebounding providing some hope, mortgage interest rates are on the rise.

However, even if you don’t lock in a rate right now, you are still likely to be able to reap the benefits associated with historically low mortgage interest rates in general. Even with refinancing, it is possible to get a reasonably low rate.

If you have been thinking about buying a home, or about refinancing, now might be a good time to consider it. If you plan to refinance, do a cost-benefit analysis to see if the savings from having a lower mortgage interest rate outweigh the fees that you might have to pay for the refinance.

Now that the year is drawing to a close, it’s time to consider your taxes. It’s always best to prepare as early in advance as you can. This way you’ll be less stressed. And one of the things to watch out for is the mortgage interest statement from your lender or loan servicer. Keep watch for all these items in the mail right after the first of the year, and file them away together.

Then consider whether or not you should take the mortgage interest deduction. Look at how much interest you paid on your home mortgage loan this year, and see whether, with other deductions, it exceeds the standard deduction. For most tax filers, you will have a standard deduction of $5,700 for single and $11,400 for married filing jointly.

You can itemize to see if you can exceed that amount. Add up your charitable donations, mortgage interest paid and other deductible items on Schedule A of Form 1040. If you end up with more than the standard deduction, you are ahead to itemize. Don’t settle for the standard deduction when you could very well get a bigger deduction.