How medical debt and other collection items are tallied in a credit score is changing, potentially increasing the credit scores of millions of people.
Called the FICO 9, the new credit score changes how medical collections are treated from non-medical changes, such as credit cards. A medical debt will now damage a credit score less than paying a credit card bill on time, for example.
       FICO 9 came out in 2014, but the improved credit scores could just now be coming to fruition for many consumers because it can take a few years for banks and other lenders to implement the new system.
     The new FICO 9 score should give responsible borrowers better access to credit and lower rates on existing credit once the changes are accepted by the industry.
Part of the thinking behind the changes is that for many people facing medical debt collections, it isn’t something they have a lot of control over. People get sick or are in an accident and can’t control how high their medical bills are, and may not even know that their medical debt is in collections.
     More than 64 million Americans have some kind of medical collection record on their credit reports, according to Experian, a credit bureau. Almost all medical debts are reported to credit bureaus by collection agencies.
     The FICO score is the most widely used credit score in the country, and is used by companies selling mortgages, credit cards, personal loans and more.
Another change with FICO 9 is that older collection items will have less impact on a credit score. Other types of debt that are sold to a collection agency—such as an unpaid utility bill or phone bill, school loan or rent—can still be reported to a credit bureau, but older collections will have less impact on a credit score. If the collection item is paid back, the score will improve.
I hope you found this real estate information helpful. Please contact us for all your real estate needs - click -->    Missy & Ruth 

When people are searching for a home to buy, they think about more than the purchase price. They consider the overall cost of ownership, including utility bills. Rising energy costs have affected homeowners across the country and people naturally want to find ways to keep those bills under control. Many people are also conscious of the impact that their lifestyle has on the environment and want to reduce their energy usage.
Potential buyers may choose a house that has undergone upgrades to make it more energy efficient over another house that is less efficient. If you’re thinking about selling your home in the next few years, making some improvements now can save you money while you live in the house and may help you attract a buyer in the future.
Figure Out Where to Make Changes
Contact your local utility company to schedule a home energy audit. A representative will inspect your windows, insulation, appliances and other features to identify areas where your home is wasting energy and recommend ways to make it more efficient.
If your house has leaks around the windows, you may be letting cold air enter and letting warm air escape in the winter. In the summer, hot air may be coming in and cooled air may be escaping. That means that a lot of the energy used to heat and cool your house may be wasted. Installing new, more efficient windows can help you avoid wasting energy. Increasing the amount of insulation in the attic, basement and crawlspace can also help you control the indoor temperature.
With a programmable thermostat, you can avoid spending money to keep your home heated or cooled when no one is there. Instead, you can automatically adjust the thermostat so the house will be at your desired temperature when you and your family are home.
Older appliances may use a lot more electricity and water than newer ones. Upgrading to more energy-efficient appliances may dramatically lower your utility bills and make your home more appealing to prospective buyers.
Make Smart Long-Term Investments
It can be difficult to know whether a renovation or a remodeling project would be worthwhile, but energy efficiency improvements are almost always a wise investment. Making your home more energy efficient can save you money while you live in the house. If you stay there for several years, you may recoup most or all of your investment. 
Those upgrades can also help you get a higher price when you eventually sell your house. People who are concerned about the environment and who want to save money may be willing to pay more up front to enjoy lower utility bills each month. If you decide to sell your home in the future, discuss any energy efficiency upgrades you have made with your real estate agent so they can be highlighted in the listing. 

Great information in this one! 

With a whole new year at your fingertips, and plenty of virtual classes becoming available each day, there’s never been a better time to try something new. Now is the perfect opportunity to finally get around to that new skill or hobby you’ve always wanted to try. Better yet, many of these classes can be attended from the comfort of your own home. 
Community or State College Course
If you’ve always wanted to learn a second language, or you’re interested in learning more about cooking, sign up for an online class through your local college. Many will allow you to audit a class for no credit, which means you can take the course without worrying about grades while still getting access to the same textbooks, lessons and materials. Some colleges even allow senior citizens to audit courses for free or at reduced rates.
Sewing or Knitting Lessons
There are a plethora of virtual lessons out there ranging from paid craft store-sponsored classes to free videos on YouTube. Sign up for a class or ask a generous and crafty friend to plan a Zoom get-together so they can show you the ropes.
Join a Virtual Book Club
While not technically a class, if your goal is to read more books, there’s no better time to join a book club. Get accountability, amazing book suggestions and interesting conversation—and do it all without leaving your couch. It’s an introverted book-lover’s dream come true.
Online Painting Course or Paint and Sip
Taking a painting course through a college or your local art society can be a great way to polish up on your painting skills. If you’re not ready for a big time commitment, look around and see if a local shop is hosting a virtual paint and sip event. Simply pay for the class, pick up your materials and wine pairing, and take the course from home by yourself or with a friend or family member.
Local Fitness Class
Whether you opt for Zumba, Pilates or yoga, your local fitness club likely has a variety of options so that you can join in the fun without leaving your house. This is a great option for anyone looking to improve their health without having to worry about the logistics of heading to the gym.
Virtual Museum Tours
If you’re interested in learning about history or other cultures, signing up for a few virtual museum tours could be the perfect way to scratch that itch. 
Great suggestions!  Thanks, RISMedia.

An accessory dwelling unit, or ADU, is a residence that may be attached to a house or in a separate structure located on the same property. An ADU must have its own entrance, kitchen and living area, and may tap into the main house’s utilities.
Renovating your garage into an accessory dwelling unit can give you additional living space or a new stream of income. **Before you undertake such a project, consider the benefits and downsides, as well as local zoning rules.
Reasons to Convert Your Garage to an ADU
A garage can be turned into an apartment for an elderly parent, a place for a child to live when returning home from college during breaks, or a place for other relatives to stay when they come to visit. An apartment with a separate entrance can give family members privacy while allowing people to spend time together when they want.
You may be able to convert your garage into an apartment and rent it out to generate income. If you find a tenant to live there year-round, the monthly rent payments can offset some of your mortgage payments and give you more flexibility in your budget. 
Another option is to offer an accessory dwelling unit for short-term rentals. If you live in an area that’s popular with tourists, a garage that has been converted to an apartment may be more appealing to visitors than a hotel room.
An ADU can also provide additional space for people who are already living in your household. For example, you can use it as a workshop, art studio, home office or children’s playroom. 
Yet another option is to live in an ADU yourself and rent out the main house. That can give you financial freedom in retirement.
Though this additional living space may quickly increase your home’s value, remember that your property taxes may also go up.
Drawbacks to Consider
If you want to convert your garage, you will, of course, have to pay for renovations. The price tag will depend on the types of changes you want to make and costs for an architect, contractors, materials and permits. 
You may have to take out a loan or use a home equity line of credit to fund the project. If you rent out the unit, you may recoup the money, but there is no guarantee that you’ll get a renter right away or that the apartment will be rented out consistently. If you don’t have rental money coming in, you’ll still have to make payments toward a loan or HELOC.
If you decide to rent out this space, you will have to deal with maintenance, rent collection and other landlord-tenant issues. You’ll also have less privacy with a tenant nearby.
Converting your garage to an apartment means you won’t be able to use the space for storage. You’ll have to find somewhere else to store your vehicles, lawn care equipment and other items you currently keep in the garage.
*Great Article - thanks RIS MEDIA

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Four Ways to a Higher Credit ScoreImproving your credit can take time, often many months. But there are some things you can do to raise your credit score quickly, even if only by a few points.

Pay Bills on Time
Payment history is the most important factor in FICO scores, accounting for up to 35 percent of a credit score. Paying your bills on time—regardless of whether it’s a credit card bill or a utility bill—can significantly improve your score.
Late payments stay on a credit report for seven years. The longer ago they happened, the less they affect credit scores. If a bill goes unpaid long enough, the debt can be sold to a collections agency and will get reported to credit bureaus.
Maintain Low Balances
Keeping a low balance lowers your credit utilization rate, which is the amount of credit you’re using. Also called credit usage, it is the second most important factor in credit scores and accounts for 30 percent of a score.
Your credit usage is calculated by dividing the total of your balances by your total credit limits. For example, $3,740 in credit card debt divided by $16,000 in a total credit card limit equals 23 percent usage.
Paying off the balances in full each month should keep the credit utilization rate low, which should preferably be at no more than 30 percent on any one card or in total.
Increase Your Credit Limit
Another part of credit usage is how much your credit limit is. Increasing your limit in small increments by getting a new credit card can lower your credit utilization rate by giving you more money to use. You could also ask your current credit card provider to increase your credit limit. However, using that higher credit card limit could increase your credit usage, so you may want to use it rarely and pay it off in full each month.
Keep Credit Card Accounts Open
Age of credit history has a 15 percent impact on a credit score. Creditors and lenders like to see an average account age of more than five years. Keep your older accounts open to get over the five-year average. While this isn’t a quick step to improving your credit score, it’s worth keeping in mind for the long-term health of your credit. If you want to see faster results, start by paying your bills on time, using less of your available credit and ask for a credit limit increase.
Great article! Thanks - RISMedia!
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During the winter, you may enjoy relaxing with your family in front of a roaring fire. Many homeowners think it makes sense to store firewood inside the house, near the fireplace, where it’s easily accessible, but that can actually lead to problems. 
You Don’t Want to Bring Insects and Animals Into Your Home
If you store wood inside your house, you may also bring in some uninvited guests. A stack of firewood can serve as shelter for insects, including termites and spiders, as well as mice, snakes and other small animals. If they get loose in your home, you may have to hire a pest control company to get rid of them and pay a contractor to repair damage they cause. 
Firewood Needs to Season
Wood has to season, or dry out, before it can be used as firewood. Wood filled with moisture won’t burn long or produce much heat. It can also produce a lot of smoke and release carbon monoxide, as well as creosote, which can lead to a chimney fire.
Where and How to Store Firewood
Freshly cut wood should be stored outside, where it can season. There isn’t enough airflow in a typical house for wood to dry out thoroughly. Wood stored outdoors may take six months or longer to dry out enough to be burned in a fireplace or wood stove.
Keep firewood at a good distance from your house so that insects and animals living in the wood pile don’t have easy access to your home. Choose an area with good air circulation. 
Storing wood right up against the side of your house may seem convenient, but it can be dangerous. If a spark from a barbecue, a fire pit, an unextinguished cigarette or another source causes the stack of firewood to go up in flames, your house may soon follow. Stacking firewood next to the house can also limit air circulation, which can allow mold and fungus to grow.
Store firewood on a pallet or rack at least a few inches off the ground so the wood doesn’t come into contact with moisture that could cause it to rot. Arrange logs in rows, leaving enough space between them to allow air to circulate, and stack them about four feet high with the cut ends exposed.
You can use a firewood cover or tarp to protect the top of the stack from rain and snow, but leave the sides uncovered so the wood is exposed to air and sunlight and able to season. If you decide to store wood in a shed or barn, make sure the building has enough air circulation for the wood to dry out.
Only bring enough firewood for one day at a time into your house. Don’t set logs near the fireplace, as  a stray spark could cause them to ignite and your entire home could catch fire.
**We are really careful about this over at my house! Thanks, RISMedia!

Ever wish you could become one of those rare morning people? The ones that wake with a start, feeling refreshed and energized. The ones that get in that morning workout or wrap up some work before many of us even hit the snooze button for the first time. Here are five tips to help you   achieve that early bird status!

1. Create a morning schedule. Physically write down the things you’d like to complete in the morning and set a time for each. Then stick with it. Once you force yourself out of bed early one or two weeks consistently, you’ll find it gets easier and easier to do.
2. Let the light in. Whether natural or artificial, light tells your brain its time to get up and get going. If your room lacks large windows where you can open the blinds up, consider investing in a timed lamp or alarm clock with a light.
3. Prep and eat breakfast. Although there are many of us who chose the skip breakfast, it is key to perking up your energy in the morning. Try prepping protein-focused meals the night before or grab a yogurt or fruit and try to consume it right after you wake.
4. Get your body moving. Whether it’s a short walk around your neighborhood or a rigorous 5:30 am spin class, getting your blood pumping will help wake up your body and has a ton of other benefits, like stress and anxiety reduction.
5. Feed your mind. Stimulate your brain and do something you enjoy first thing in the morning. Try reading a favorite book, catching up on the news, doing daily meditation, or setting intentions.

Outdated kitchen? Overrun backyard? Unusable basement space? If you have a home renovation project on the mind, the first thing you have to consider is how you are going to finance it. Here are the most common options to make your dreams become a reality.
  Cash. Paying in cash is the most straightforward financing option, just save until you have enough money to cover the expenses. This will help eliminate spending outside your budget; however, it can also extend your timeline.
  **Mortgage Refinance. If you’ve been making payments on your home for a few years and your interest rate is higher than current market rates, you may be eligible for a mortgage refinance, reducing your payments and freeing up some money.
Cash-Out Refinance. You can tap into your home equity and borrow up to 80 percent of your home’s value to pay off your current mortgage plus take out more cash to cover the renovations. This option is encouraged only when you’re making improvements that will increase the value of your home, as it can add a lot of interest and fees.
  Home Equity. Getting a home equity line of credit allows you to borrow money against the value of your home. You receive usually up to 80 percent of your home’s value, minus the amount of your loan.
  Retirement Funds. Homeowners can consider pulling money from a 401K or IRA account, even though they aren’t specifically meant to cover a home renovation. This option might incur additional penalties or tax payments, but may be worth it when making improvements that will benefit them financially in the long run.

Check with a mortgage professional like Nick Fuller at Stonegate Mortgage if you are considering refinancing! {508-717-1294}

​Refinancing your mortgage is something most homeowners consider at least once throughout the lifespan of their home loan. It allows you to pay off your previous loan by applying for a new one that has better financial advantages. While there are many good reasons to refinance, here are five common ones.

• Scoring a lower interest rate. The number one reason homeowners decide to refinance is to secure a lower interest rate on their mortgage. Not only does this save you money in the long run and decrease your monthly payment, but you can start building equity in your home sooner.
• Using an improved credit score. Even if interest rates have not dropped in the market, if you’ve improved your credit score over the last few years, you may be able to reduce your mortgage rate.
• Shortening the loan’s term. If interest rates are decreasing, there is a chance you may be able to get a shorter loan term with little to no change in your monthly payment, allowing you to pay off your loan sooner.
• Switching from an adjustable rate to a fixed rate. If you chose an adjustable-rate mortgage with great introductory rates when you initially financed your home, that rate may increase significantly over the years. By switching to a fixed rate while interest rates are low, you can protect yourself from future increases.
• Cashing out home equity. If there is a big purchase or payment on the horizon, such as funding a wedding or going back to school, your best option may be to use the equity you’ve built in your home to borrow money at a lower cost.
• Call NICK FULLER at Stonegate Mortgage 508*717*1294