Consumers in the market for a home this spring should check their credit reports and reduce debt.
''Too many people wait until they are already into the process to find out what's on their credit report or get a handle on how much they owe,'' said Steve Rhode, president of the non-profit Debt Counselors of America (DCA). ''But that can mean a serious delay, higher costs or even no loan.''
DCA recommends that consumers order their credit reports two months before applying for a loan, to allow time for any corrections. Other tips: close accounts you don't use, such as old credit cards; don't apply to several lenders at once; realize the cost of owning a home is more than just the mortgage payment. Insurance, taxes and repairs are just some of the added costs to plan for.
Dreyfus Group No. 1 for mutual funds
Dreyfus Group finishes first in a new ranking of mutual fund companies.
Worth magazine compared the 25 largest fund families' top-performing funds the past five years in five categories: global, small company growth, small company value, large company growth and large company value. Index, specialty, sector and non-U.S. regional funds were excluded.
The results: Dreyfus was first, followed by Alliance Capital Funds, Franklin Funds, Janus, Scudder Kemper Investments and T. Rowe Price. Fidelity, the company with the most assets, ranked 12th; Vanguard, the second-largest, was 11th.
Details are in the April issue of the magazine and via the Internet (www.worth.com).
It might not pay to convert IRA to Roth
The new Roth IRAs let anybody sock away $2,000 a year without having to pay taxes on the gains -- a powerful savings incentive. But should you cash in your old individual retirement account, pay the taxes due and convert it to a Roth IRA?
It depends, of course, on individual circumstances and goals. And your adjusted gross income must be $100,000 or less to convert.
But here's a guideline from the January issue of Financial Planning: If you can pay the tax from funds outside your IRA and transfer the full amount into a Roth IRA, you'll come out ahead after 10 years. But if you have to withdraw funds from your old IRA to pay the taxes due, it will take 25 years for a Roth IRA to outperform the regular IRA.
Young people can learn the advantages of Roth IRAs by ordering a free brochure, Get a Roth Rolling . . . and other ideas on how to fund your retirement. Call Citibank at (800) 934-3919.
To get best car lease,
prepare to negotiate
If you like to drive a new car every few years and want to keep your monthly payment as low as possible, leasing might be for you.
To help you decide, you should understand some key leasing terms. A few things to consider, according to Keys to Vehicle Leasing: A Consumer Guide, from the Federal Reserve Board:
· How many miles can you drive the vehicle every year? Most leases limit annual mileage to 12,000 to 15,000 miles, after which you pay for each additional mile.
· Charges for ending the lease early.
· Negotiate the total price, or gross capitalized cost, upfront. This determines your monthly payment and the price of the vehicle should you decide to buy it at the end of the lease.
-- Gannett News Service
