How to calculate your closing costs

An editor I work with is refinancing her mortgage. The lender estimated her closing costs at $7,000, which seemed high to her. She asked me to take a look.

Sure enough, the closing costs were legitimate. They were higher than expected because of when she chose to close during the month, and when her property taxes are due.

When you refinance an existing loan, you'll need to pay off your existing loan plus any prepayment penalties. You'll pay the per diem cost of your existing loan and prepaid per diem interest on the new loan.

You may have non-recurring closing costs, like title insurance, and you may have recurring costs, such as property taxes and insurance premiums. And if the lender is going to escrow money for taxes and insurance, you'll have to pay extra to start funding those accounts.

It's hard to keep track of all the numbers. So ask for a copy of the HUD-1 form, also known as the escrow disbursement sheet. That'll show you how much you need to close.

Why you need title insurance

There was a terrific story in the Wall Street Journal recently about how you may not be able to see a road in the more sparsely populated parts of Vermont, but they do exist.

And they're causing all kinds of trouble for people who are moving to the state later in life. They're buying property, only to find out after the closing that a road from the early 1800s runs through the center of their land.

The road may not be marked. And, it may not have any government-funded maintenance or upkeep in the last 200 years. But it's still a road and the local government still owns it. You just can't see it.

This is why you buy title insurance – for all the weird, hidden title issues that you can't even imagine will cause problems down the line.

Sure, you'll have to get a lender's policy if you're getting financing. But be sure to buy an owner's policy, too.

Who can get a credit card? Anyone. Legal or Not.

It's no great secret that over the past decade, banks have quietly opened up its vaults to accept cash from illegal immigrants.

Instead of requiring proof of U.S. citizenship, or asking for a Social Security number, banks take Mexican identity cards, or an identity card of equal status from other Latin American countries. And, the cash has poured in.

But Bank of America has recently taken a step that's of interest to anyone who wants to get a credit card, but doesn't have citizenship or residency. The company has quietly begun offering credit cards to customers without Social Security numbers.

If you've had a checking account with the bank for three months without bouncing a check or having an overdraft, you can get a credit card without a Social Security number or a credit history. There's an upfront fee, and a limited credit line to start.

The program, which was tested in Los Angeles, will go national later this year.

Are hip hotels really what business travelers want?

I recently stayed in an ultra chic, ultra hip hotel in New York City for a conference I was attending.

My sister, who lives in New York, was with me when we checked in. We marveled at the fake ivy on the ceiling, the fabulous, but off-center chandelier, and the fact that the hotel was so hip it didn't even have its name on the outside of the building.

Later that night, the true hipness of the hotel came out. There wasn't enough light anywhere to see anyone or anything. And around midnight, the hotel bar turned into a hot nightclub filled with Paris Hilton wannabees.

It was a fabulous experience to stay there, but would I choose a hotel like that for myself?

Probably not. I'm more of a "What deal can I get on the Internet this week" kind of a traveler. I feel most comfortable in a mid-range hotel that gives me good lighting, a king-size bed, and coffee I can make for myself in the room – all for as little money as possible.

The bubble is bursting when it comes to fraud and real estate

Over the past 10 years, a lot of people made a lot of money in real estate, particularly developers who built single-family homes and condos in Arizona, Las Vegas, Los Angeles, Atlanta and Florida.

But the condo boom is on hold in Florida and many other places right now, as the real estate industry contracts. In Orlando, a first-time developer who was savvy enough to hire well-known real estate people, attract hundreds of investors, and do a marketing deal with the Orlando Magic, has gone bust.

Many of those investors, including schoolteachers, cops, doctors, and retired army officers, face potential losses of up to $400,000.

What the average buyer doesn't understand is that buying new construction is a supreme act of faith. Even if you thoroughly check out a developer's reputation, you don't really know if he's co-mingling your funds, or just sending your cash to an off-shore account.

Which is why you need to know as much as possible about your developer before you sign on the dotted line.