Workplace Options News: Workplace Options Views Recent Foreclosure Crisis as Opportunity for Employers to Educate Their Workforce

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Workplace Options Views Recent Foreclosure Crisis as Opportunity for Employers to Educate Their Workforce

Providing employees with financial advice before taking on a large mortgage can help to maintain a sound work-life balance

Contact:
Christine Hall
chall@capstrat.com
919-882-1998

20 March 2007 – Raleigh, NC – Recent news reports surrounding a crisis in the mortgage industry are a reminder to employers that financial concerns could negatively impact the emotional well-being of employees.

“Time spent worrying about financial pressures due to a foreclosure or other concerns can mean the loss of an employee’s focus and productivity,” said Alan King, president of Workplace Options. King continued, “Phone calls to lending institutions or a search for solutions on the Internet means an employee can’t focus on the job at hand. This is why it is in the employer’s best interest to assist their workforce as much as possible by educating them on mortgage options, pitfalls and the consequences of default.”

Workplace Options (WPO) , the largest provider of work-life employee benefits in America, recognizes the burden a financial crisis can place on families. Through its Financial Assist program, WPO offers financial support and education programs to employers and their employees. Financial Assist offers access to certified financial professionals as an employee benefit. Services not only include housing education, but debt management, bankruptcy prevention and many other tools needed by employees looking for financial advice and assistance.

WPO offers the following tips for those looking to take on a mortgage for a new home or are considering refinancing:

Research current interest rates. Check the real estate section of your local newspaper, use the Internet, and call a mortgage broker or at least six lenders for information.
Have lenders provide rates for 30-year, 20-year and 15-year mortgages. You may be able to save thousands of dollars in interest charges by getting the shortest-term mortgage you can afford.
Ask for details! Be sure to get the Annual Percentage Rate (APR) which takes into account not only the interest rate but also points, broker fees, and other credit charges expressed as a yearly rate.
Ask whether the rate is fixed or adjustable. The interest rate on adjustable rate mortgage loans (ARMs) can vary a great deal over the lifetime of the mortgage. An increase of several percentage points might raise payments by hundreds of dollars per month.
If a loan has an adjustable rate, ask when and how the rate and loan payment could change.
Find out how much down payment is required. If you put down less than 20 percent of the home's purchase price, you may be required to purchase private mortgage insurance (PMI) to protect the lender if you fall behind on payments.
If PMI is required, ask what the total cost of the insurance will be. How much will the monthly mortgage payment be when the PMI premium is added and how long you will be required to carry PMI?
Ask if you can pay off the loan early and if there is a penalty for doing so.
Consider refinancing your mortgage when rates go down if you plan on keeping the mortgage for several years.
When comparing mortgages, don't forget to include the extra fees you must pay for the new mortgage.

About Workplace Options

Workplace Options helps employees balance their work, family and personal life in order to make their lives healthier, easier and more productive. The company's world-class employee support and work-life services provide information, resources, referrals and consultation on a variety of issues ranging from dependent care, legal and financial issues to stress management and wellness.

Drawing from an international network of credentialed providers and professionals, Workplace Options is the world's largest integrated employee support services and work-life provider. Service centers in Raleigh. N.C., London, Toronto and Dublin support more than 32 million employees in 20,000 organizations, across 170 countries. To learn more, visit www.workplaceoptions.com.