What Refinancing Your Home Can Do for Your Pocket Book

Buying a home is perhaps the largest investment any person will ever make in their lifetime. It will also likely be an investment you will make more than once as you will likely buy, sell, and move from home to home. 

So it is important you know how your mortgage can affect your bank account. With that said, there will be times where you will want to consider refinancing your home to ease your financial burdens.

After you have been in your home for a few years, you may notice that you have paid down a decent amount of your mortgage’s principal balance. 

In addition, the value of your home may have appreciated, or you may have made some excellent improvements to it that bolstered value. 

The combination of these events may have created substantial equity in your home, and you may now be wondering if you should tap into your equity with a refinance mortgage. 

Refinancing your mortgage can benefit you financially in several important ways. 

Lowering Your Mortgage Payment

When you apply for a refinance loan through a company like Republic State Mortgage Co., you can get a quote for the rate and term that may apply to your new loan. 

You will also receive an estimated monthly loan payment, and this may provide you with very beneficial news. In many cases, homeowners are able to lower their mortgage payment by refinancing their current home loan. 

This may be by qualifying for a lower interest rate, lowering their starting principal balance or both. When you lower your mortgage payment, your monthly budget will instantly be improved. This savings can be enjoyed throughout the life of the loan.

Reducing Interest Charges

As previously stated, refinancing your home can reduce the interest on your home. When you have a lower interest rate or a lower starting principal balance on your loan, you will pay less in interest charges. 

Reduced interest charges provide you with the ability to accrue equity more quickly in the future as well as the ability to make your monthly mortgage payments more effective at debt reduction. 

Both of these factors can drastically improve your financial situation over the years. This should also allow you to pay off your home quicker, especially if this is your forever home. Paying off your home is the ultimate goal. 

Once your home is completely paid off, you will be able to spend money elsewhere and go and do things a little easier that you were able to before. 

Using Cash out Proceeds to Pay Off Debts

If you intend to access some of your equity through a refinance loan, you can use the cash out proceeds to strategically improve your finances. 

For example, many will use the cash out proceeds to fully or partially pay off outstanding credit card debts, medical bills and student loans. This can save you a considerable amount of money in monthly expenses, and it also can make it faster and easier for you to pay your total debt balance off.

Refinancing your home mortgage is a wise financial move to make in many situations. However, each homeowner has a different financial scenario to consider. 

You will want to keep an eye on the interest rates and the housing market so you can get an idea of how refinancing your house might affect your pocket book. 

It is important to review all factors to ensure that this is the best move for you. Getting a quote from your mortgage company can help you to make a wise decision.

How To Invest In A New Car While Staying Frugal

While some buyers look at the purchase of a new vehicle as exciting, many consider it a necessity. The investment that's made on the purchase of a new car, from places like Bay Ridge Nissan, can be taxing on nearly any middle-class or lower income. 

As frugal as we may be already, the extra hundreds of dollars makes the need to be even more frugal a crucial step in maintaining financial independence. 

Here are some ways to invest in a new car while staying frugal.

Eat Out Less Often

As you pull out of your driveway towards your local fast food or dine-in restaurant, remember that eating out can cost 300% or more of what you would spend cooking at home. 

Preparing your daily meals at home can easily save you $200 or more on a monthly basis. It may seem like a lot more work to cook at home, but it can definitely save you a lot of money.

Choose Netflix or Streaming TV

The average household cable or satellite bill is around $100. You can cut that cost by nearly 90% with a simple Netflix subscription for $10/month. 

Additionally, many cable channels provide free access to their TV shows, so you don't always have to miss out on your favorites just to save a few dollars every month.

Use Less Water

Water consumption can easily eat into your monthly income. Getting out of your comfort zone is crucial to becoming frugal for your new car investment. Here are a few ways to lighten the load on your water ball.

• Shorten your daily shower by 2 minutes
• Trim one minute from each session of your lawn sprinklers
• Run a few loads of lots of laundry, rather than several smaller loads

Get Outside and Get Rid of Gym Memberships

While it's nice to be able to go to the gym before or after work, you can still get a great workout on your own. 

There are plenty of workout routines available on video streaming sites that require no equipment. If you're one for running machines, you'll appreciate the fresh air and scenery around you if you simply run a few miles around your neighborhood.

Lose the Bad Habits

If you're a smoker, gambler or consume your free-time with other unhealthy habits, you could be draining your bank account faster than you think. 

While challenging, cutting out these bad habits will make it exponentially easier to see to your new car payments every month. Making small everyday changes can really add up to making a huge difference.

Each of these frugal ideas alone may not do much, but as you work to cut spending, you'll be pleased with the results. 

Take the time to review your banking activity, and look to see just how much you can save for your new car by cutting these monthly expenses.

What is an Installment Loan and How Does It Work?

When you need to make a large purchase and do not have the cash on hand or a line of credit to do so, an installment loan is a financing option to consider. 

An installment loan may be offered through a credit union, bank or a private lender. Understanding what an installment loan is and how it works can help you to decide if this type of financing is right for your situation.

Fixed Payments

When you take an installment loan, you are agreeing to make fixed payments for a specific period of time. Each of the payments is due on a specific date, such as the first Monday of the month or the 15th day of the month. 

The fixed payment includes the portion of the principal of the loan and the interest that you have accrued on the principal. Each payment that you make on an installment loan reduces the amount that you owe on the principal.

Interest Rates

Interest rates on installment loans are usually fixed at the point in time that you take the loan. Some companies, such as Las Vegas Finance, know that the interest rate that you get may differ from what another applicant would get even on the same principal. 

Your interest rate will be calculated based upon your credit score. If you have a low credit score, you may have a high interest rate.

Secured Versus Unsecured Installment Loans

A secured installment loan is tied to a piece of property as collateral. One example is a mortgage loan. A fixed mortgage is an installment loan that uses the house as the collateral. An unsecured installment loan does not use any collateral. 

These loans are sometimes called personal loans and could be used for a leisure or personal purchase, such as buying a diamond engagement ring.

Benefits of Getting an Installment Loan

An installment loan makes it easy for you to plan your monthly expenses. With excellent credit and property to secure the loan, you may enjoy a low interest rate. 

ome installment loans, such as mortgages, have tax-deductible interest. On-time payments on an installment loan can also help you to build your credit score.

An installment loan provides you with a set amount of debt to repay each month. The predictability of the loan's payments makes this a convenient choice for many people. 

Before signing your name on the dotted line, be sure that you understand all of your obligations as the borrower on an installment loan.

Tight On The Budget? 4 Creative Ways To Earn A Little Extra Cash

It's not uncommon to be a little short on your monthly budget every once in a while. Gas prices might rise, you might need more food than you planned on purchasing, or there could have been an emergency with the home that needed to be taken care of. Fortunately, there are ways that you can make a little extra cash if it's needed.

Online Surveys

There are numerous sites online where you can take surveys to make money. You won't get rich quick, but you can make a few extra dollars that can be used for gas, food or a small bill. 

Try to sign up for as many survey sites as possible in case one doesn't have any surveys to take that day. You'll see that most surveys are posted early in the morning, so this is the best time to get on the sites to make your cash.

Get Rid Of The Junk

If you're like most people, you have some kind of metal around the house or outside. You can pile all of that old metal up to take to a recycling center. Most centers will pay cash for the metal that you have. 

The amount will be based on the type of metal and the demand. Selling old cars to businesses like U Pull & Pay is a convenient way to earn some extra cash, as they will most likely come and get the car from you.

Yard Sales

Gather a few items that you no longer want to have and organize a yard sale. If you set your prices right, then people will be flocking to your sale to buy your goods. 

Yard sales are a great way to get rid of extra stuff lying around your house, and earn a little extra cash.

Consignment Stores

Whether it's children's toys and clothing or items for adults, there is usually a consignment store that will buy the items that you no longer want. 

Some stores will pay you up front, but there are some that won't pay you until the items are sold in the store. It's best to look for the stores that will buy up front because you might get a reduced price if you wait.

Making a little extra money is easy if you know what to do, such as selling unwanted items. Being short on money isn't an indication of how you manage your money. 

It's simply something that happens to many people, and as long as you understand that there are other ways to budget, then making extra cash can get you through.