Ask Karen Gibbs

Karen, I’m on social security and received a notice that I must have a text-enabled cell phone to access my social security account.  I don’t text and don’t want to. Can I block access to my social security data?
- Concerned in Catonsville, MD

Dear concerned, you can relax.  The Social Security Administration, in an effort to upgrade online security, had required a security code to be texted to your phone as a “multifactor authentication” security measure.

However, bowing to public and Congressional pressure, the Social Security Administration has rescinded the July 30, 2016 mandate and now no longer requires you to have a text-enabled cell phone.  Fewer older Americans use cell phones and those who do often find texting difficult due to vision problems or arthritis.

The Social Security Administration still strongly urges you to take advantage of what is now an optional extra security level.  Opening your personal social security account ...

Hi Karen, I bought my home in 2007 with a 6.5% mortgage.  I’d like to lower my monthly payments. How do I go about refinancing my 30-year mortgage?

- Allison, Bel Air, MD

Thanks, Allison, for your timely question.  Mortgage rates have fallen dramatically since 2007, in part due to the mortgage crisis that led to the Great Recession of 2008, as well as low interest rate policy decisions by the Federal Reserve Bank.  Lower rates will lower your monthly payment which is comprised of principal and interest.

Refinancing means you pay off your current mortgage with a new mortgage.  This gives you options.  You currently have a 21-year loan at 6.5%.  Is there a pre-payment penalty?  Are you eligible to refinance?  Do you want to extend the length of the loan to 30 years or shorten your loan to 15 years?  Do you want to remain with a fixed interest rate or switch to an adjustable rate?  Are you pleased with the service provided ...

A follow up to my last column:  Paul asked for my thoughts about auto dealer financing, so here’s my smart thinking about money perspective.

Start with your credit score.  The higher your credit score, the lower your financing rate will be; the longer the financing term, the lower the rate.  An excellent credit score of 750 or higher may qualify you for a zero-down, zero-interest loan, but it may be too good to be true.  You must crunch the numbers.

How much car can you afford?  Across the nation, affordability is an issue with average wages and salaries not enough to afford the average price of a new car.  Because of that, many buyers are financing for a longer term to lower the monthly car note.  If you need five, six or seven years to pay off the car, you probably can’t afford it.  Edmunds.com has a calculator to help you determine your price point.

Don’t forget to calculate license and registration fees, insurance, gas and ...