Ready . . . Set . . . Refinance!

Are you itching with refi fever? It's as natural as it is contagious. Home mortgage rates hit a multiyear low back in February. It didn't help the housing market lift itself out of its slump. There are still way too many homes on the market for that to stabilize. However, for those sitting on relatively high home loan rates -- especially those who bit the hook on adjustable rate mortgages, only to find them reset substantially higher -- mortgage refinancing is a reasonable consideration. Before we explore the benefits of refinancing your mortgage rate and whether or not it's right for you, let's get the bad news out of the way first. If you bought your home over the past couple of years, there's a fair chance that your home may be worth less than what you paid for it. That could be a problem. If you owe more on your home than its currently appraised value, you're not going to be able to refinance. In some cases, you may find yourself having to pay payment mortgage insurance -- or PMI -- as a result of having less than 20% based on your home's updated valuation. Yes, even if you had already cleared that hurdle under your original mortgage. As you can see it, things can get tricky. It also doesn't help that lenders are stingier than they used to be. They are still reeling from the subprime meltdown, so you can be sure that they are going to be very particular about who gets to refinance this time around. If you have enough equity in your home, based on today's depressed real estate prices, then we can take the refi exploratory process to the next level.Should you refinance? It's a numbers game, really. You can't just make a decision based on a lower interest rate. Several closing costs and fees are tacked on to the refinancing process. Some mortgage brokers may offer no-cost refinancing--but that only means that the closing costs will be baked into a higher interest rate. Several Web sites like Bankrate and Money.com offer free refi rate calculators online. Punch in the appropriate values like the difference in rates and how long you plan on staying in the home and the software will crunch the numbers for you. If you have enough equity in your home, you can even do what they call a cash-out refinance, taking out slightly more in principle than you had before. Many people use a cash-out to remodel their homes or pay off higher interest credit cards. Be careful with the latter scenario, because the move makes sense on paper but you're turning unsecured credit card debt into one backed by your home.This shouldn't scare you away from refinancing. It definitely makes sense for a lot of homeowners. Just make sure that it's possible and that you know what you're getting yourself into. Go ahead and scratch that refi fever itch. Just don't pick at it until it becomes infected.Rick Munarriz is a personal finance columnist for HispanicBusiness.com. He has written for sites such as The Motley Fool and Citysearch and has appeared on NPR, TechTV, Sirius Satellite Radio, and CNN en Español. He can be reached through http://www.reportedly.com/ where he discusses his latest articles.

Do your homework before getting a reverse mortgage

By Connie Thompson
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While thousands of people are losing their homes to foreclosure, others are using their homes as a last resort, borrowing against the equity in their home - without making payments on the loan. Fewer people are getting reverse mortgages now because of the drop in home values, but many people who qualify (you must be at least 62) are sitting on a pile of equity.Lewis and Barbara Arnold have seen the glamorized marketing of reverse mortgages."If you see the commercials, the commercials are (about) houses that are probably $500,000 or $600,000 houses, the people are dressed really nice - they got their gray hair all slicked down and they got nice are all that," said Lewis Arnold.But the Arnolds are just looking to pay off more than $65,000 in medical bills."Hospital debt, doctor debt from a liver transplant, kidney transplant, I've had both knees done," Newis said.So, the Mason County couple is taking a reverse mortgage against the value of their home.Before you get a reverse mortgage, the government requires counseling by an approved agency like Consumer Counseling Northwest.But consumer advocates say many people don't understand the true costs.There are three options for interest charges - a fixed rate, a rate that adjusts ever month, or a rate that adjusts every year. Each option has a different effect on your bottom line.There are other costs - loan fees, monthly service fees, mortgage insurance and closing costs. You can take your money in a lump sum, get a line of credit or a combination of the two. Your choice will affect the how much interest you'll pay.Once their bills are paid, the Arnolds will get about $13,000. Then, they'll have to buy a car to replace their current car which has more than 300,000 miles. They'll still have to live on a very tight budget."But I'll be debt free," said Lewis. "I can go to bed at night and say, 'Thank God, I don't owe anybody anything.'"Again - you must be at least 62 and have equity in your home with no liens.One final word of caution - even with the required counseling seniors are still getting duped into reverse mortgages that are not in their best interest.So be sure to ask questions, check facts and figures and contact the American Association of Retired Persons for tips that can help. On the Web:http://www.aarp.org/money/revmort/

Ohio attorney general admits to affair with employee

By JULIE CARR SMYTH

COLUMBUS, Ohio (AP) — Ohio's attorney general admitted an extramarital affair with an employee Friday, soon after three of his aides were fired or forced out after an investigation found evidence of sexual harassment and other misconduct.
Leader of both parties were critical of Attorney General Marc Dann, one of several Democrats swept into office in 2006 after a scandal over state investments sullied Republicans. He apologized to his wife and supporters but promised not to step down.
"I'm embarrassed. I have taken responsibility for what I've done," he told reporters.
Dann had lived with two of the aides at an apartment during much of his first year in office and some of the alleged harassment by one of the aides occurred there.
"I did not create an atmosphere in my public and personal life that is consistent with the important mission of the Office of Attorney General ...," Dann said. "I am heartbroken by my failure to recognize the problems being created and by my failure to stop them."
Ohio GOP deputy chairman Kevin DeWine called for Dann's resignation, saying he turned the attorney general's office into a "raunchy frat pad."
Democratic Gov. Ted Strickland said the investigation showed a "double standard" with Dann staying while some employees were let go.
Dann, 46, said the affair was consensual and refused to disclose the name of the employee. He said the relationship came during a difficult time in his marriage, but that it "was wrong and I deeply regret it."
Dann's scheduler, Jessica Utovich, with whom he had a close relationship in which they often used profanity, nicknames and teasing when e-mailing each other, resigned voluntarily, said Tom Winters, first assistant attorney general. He did not give a reason.
When interviewed for the sexual harassment investigation conducted by assistant attorneys general, Dann said Utovich stayed overnight at an apartment he shared with the two aides for a variety of reasons that he would not discuss. During her interview, Utovich would not say whether she ever stayed overnight at the apartment during her interview.
Utovich and Dann's wife, Alyssa Lenhoff, did not immediately return messages seeking comment.
Both aides Dann lived with were fired after the results of the investigation were released Friday. Investigators found that Anthony Gutierrez, who led Dann's general services office, violated sexual harassment policy, and Leo Jennings, Dann's former communications chief, is accused of trying to get a worker to lie when interviewed under oath.
Investigators say Edgar Simpson, Dann's policy chief, was forced to resign for failing to address inappropriate behavior. Simpson had knowledge of Gutierrez's history of policy violations, the investigation report said.
Dann emerged into state politics as an appointed state senator with a small private law office, and became the face of the Democrats' charge against a scandal over state investments that contributed to the Ohio GOP's devastating election losses in 2006. He defeated a better known and more experienced Republican.
As Ohio's top law enforcer, he has taken on the nation's largest insurance brokerage, the mortgage lending industry, student loan providers, MySpace and the big three credit rating agencies, among others. His crime-fighting led to comparisons with New York's Eliot Spitzer, who became governor after he was attorney general and recently resigned in a prostitution scandal.
Dann had removed himself from the sexual harassment investigation.
Gutierrez was accused by two women he supervised — Cindy Stankoski and Vanessa Stout, both 26 — of making unwanted advances and vulgar remarks.
Stankoski said she went to the apartment near Columbus shared by Dann, Gutierrez and Jennings for pizza and drinks. She said she fell asleep drunk at the condo and when she awoke, her pants were unbuttoned and Gutierrez was lying next to her in his underwear.
When it was apparent Stankoski had too much to drink, arrangements should have been made to get her home, investigators said.
Stout alleged that Gutierrez repeatedly asked her for sex, suggesting she "owed" him for helping her land a state job.
The investigation also found that Gutierrez violated policies that prohibit driving under the influence of alcohol and drugs. The report detailed an incident where Gutierrez allegedly was drinking with other employees while driving a state vehicle.
The matter is now under investigation by the State Highway Patrol.
Rex Elliott, the attorney for Stout and Stankoski, said both women feel vindicated.
"There are questions that go all the way to the top of that office about how the leader of that office allowed this environment to persist," he said.
Messages left for Gutierrez's attorney, Sam Amendolara, were not immediately returned. No phone listing for Simpson could be found.
Dann is the third high-ranking official around the country to be marred by sexual scandal in recent months. Spitzer resigned abruptly in March after revelations that he had been a customer of a high-end call girl service. And Detroit Mayor Kwame Kilpatrick is charged with perjury, misconduct and obstruction of justice for accusations that he tried to hide a long-term romantic relationship with his former chief of staff.