The Top 5 Tips to Refinance Your Mortgage

In efforts to improve lending in the struggling U.S. economy, the government has begun to reduce the federal interest rate by buying bonds. This has created a lending environment which is very favorable towards the borrower. Since it has become less expensive to borrow money, lenders can provide great interest rates for home owners to refinance. In addition to taking advantage of the currently low rates, there are a few other things a homeowner can do to reduce their interest rates, reduce cost and fees, and save time overall.

Here are the top 5 ways to reduce your costs and expenses when refinancing: 

Reduce Closing Costs - there are a bevy of "fees and expenses" that can be tacked on when you apply for a mortgage or refinance. Closing costs usually amount to about 2 - 5% of the total cost of your home. These expenses include things like appraisals, title search fees, pest inspections, origination fees, broker fees, etc. In your GFE, or good faith estimate of fees (when you apply for your refinance), brokers or lenders will include an itemized list of these expenses. 

This list will include all the necessary fees as well as extra expense which pay the broker or lender. It is possible to reduce closing costs by negotiating with your mortgage broker or lender. Ask a lender to explain the fees and see if they can "waive" application fees, underwriting fees, and processing fees. Buyers may negotiate with the sellers to absorb some of the closing costs. You can also opt for a no closing cost refinance. Sometimes this type of mortgage does pass the costs and fees into the mortgage at a higher interest rate. 

Refi to get rid of Private Mortgage Insurance - PMI or private mortgage insurance is required if you have lower than 20% equity in your home. PMI can be expensive and can cost in the range of $50 per every $100,000 borrowed. For many homeowners, this amount can mean the difference between buying and renting. If the expense of PMI is too large, a borrower can refinance in order to get rid of it. A lender can get rid of your PMI by re-appraising your home and determining whether or not you have 20% equity in it. If you believe that your home values have improved, and that your equity position is 20% or better, refinancing to get rid of PMI might be a good step to take. 

Improve Credit to get Better Interest Rates - having pristine credit will always improve your access to loans and cheap money. There are ways that you can actively improve your credit score. Ways you can improve your credit include pulling your own report and clearing any mistakes which may be pulling your credit number down. 

Experts estimate that over 30% of credit reports contain inaccurate data that could negatively affect a borrowers ability to get a loan. Since all U.S. citizens get access to 1 free credit report per year at annualcreditreport.com, it is very easy to pull this report and check for any bad data. If you see anything that look inaccurate, you can write a letter disputing the inaccurate information. 

If your report seems up to date and accurate, but your score still needs help you may need to take a more active role to improve your score. In this case, you may consider a "credit builder loan" from a credit union. This type of loan is a small easy to re-pay loan, designed specifically to improve a borrower credit score. It usually takes around 6 months to repay and can improve a borrowers credit a number of points. 

Shop Online For The Best Interest Rates - since the online marketplace for loans is one of the easiest ways to find rates, you can compare multiple lenders fairly easy. There will still be a fairly large difference in rates and expenses from lender to lender. Some lender costs ranges from $100's - $1000 for the fees that compensated to each broker or lender. By searching online, you can quickly determine which lenders are charging the most in fees. You should also contact multiple lenders to let them know you are working with other companies to get the best rates. This will give you some leverage and you may be able to negotiate to get the best rates possible. 

Reduce the Amortization Period (shorten loan term to save) - most mortgages come with a repayment (or amortization period) of 15 to 30 years. The simple fact is that, the longer the amortization period, the more money you will repay in interest. Even though a longer repayment term will come with a lower monthly payment, you will still end up paying more money in the long run. 

By reducing this repayment period, you will end up paying SIGNIFICANTLY less interest on your mortgage. The difference of 5 years on a $200,000 mortgage (at 4%) can amount to as high as $25,000 in total interest payments. You need to decide whether or not a lower monthly payment or less in the total amount of interest payments is better for you.

A Smarter Way to See the World

http://www.flickr.com/photos/44925192@N00/152019966/

Money, the great inhibitor to traveling abroad. But if you’ve got to a stage in life where you have a little more free time to see the world, then it shouldn’t be wasted. With some careful planning, it doesn’t have to be: the key is knowing where to look and being flexible with your time. Here are some money-saving holiday tips for smart seniors who want to stretch their travel savings further this year…

How to Save

It’s now a well-known fact that the cheapest flights to any destination are often the last minute ones. When airlines are scrambling to fill those unused seats, that’s when you can save up to 70% off your ticket. The key, and this is difficult for most, is being able to leave on short notice. One way to get around this is to have multiple destinations in mind, along with a block of time you’ve put aside for traveling. That way when the time gets closer you have options to choose from, and are prepared for a trip.

If you prefer the certainty of an airline ticket beforehand, savings can still be had, depending on when you book your flight. Flying during the holidays is going to be the most expensive, but there is a benefit to that. The week before and after major holidays see a major drop-off in numbers of people traveling, therefore tickets will be cheaper as well.

http://www.flickr.com/photos/67769030@N07/6196123544/

Where to go

These destinations are relatively inexpensive to get to, but more importantly where a dollar gets you a lot, not a little. That leaves London and Paris off the list, but there are still many beautiful places to go.

While the Caribbean is not generally known for being a budget-friendly location, this picturesque island is the most geared up towards tourists and can be very affordable, as long as you know where to look. Generally, the cheapest holidays to Barbados tend to happen in the off-season. May is the best month to go, sandwiched between the end of peak season (December to April) and the start of hurricane season (June). Once you get here, the all-inclusive resorts are a very good value, since much of the cost of visiting Barbados is tied to the cost of food.

The East has long been a top destination for backpackers, due to how cheap it is. Take Bangkok, for instance. $50 gets you at least a 3 star hotel, with more than enough money for three decent meals and almost any attraction around. Speaking of attractions, a big draw is the Buddha park, where less than $3 gains you access. Once inside you’ll see over 200 Buddhist and Hindu statues; to say that there is nothing remotely like that in America would be an understatement and it’s well worth seeing once in your lifetime. A visit to any eastern country affords a valuable glimpse into a culture and lifestyle most Westerners are unfamiliar with.

Of course, these are just a couple of suggestions for cheaper destinations. Depending on where you’re based, you might also want to check out Eastern Europe, which has opened up to tourism in recent years but remains a surprisingly good-value region to travel within, as well being home to many cultural treasures like the walled city of Dubrovnik (Croatia) and the Bridge of Mostar (Bosnia-Herzegovina).

In short, there are plenty of ways to make your golden years ones of discovery, so start planning and you can soon start saving…

Images by David, Bergin, Emmett and Elliott, and Arian Zwegers, used under Creative Comms license

5 Ways to Reduce Living Expenses and Save Money

As adults brace for their fiftieth birthday and continue to grow older, they worry more about the unlikely possibility of comfortable retirement. Although the economy slowly grows and unemployment rates drop, many older adults find themselves forced or willing to work into their 60s and later in life.

They still have mortgages to pay, college tuition for their children, car payments, and other bills that reduce their savings accounts or retirement funds. Those individuals not able to consider or not wanting to retire must readjust their long term life plans.

That’s why now presents an ideal time to change your lifestyle, lead a healthier life, count your pennies, live within your means, and save. The cost of living will not cease to rise while annual salaries and benefits remain stagnant.

The only way for these older adults to brace for change, prepare for a possible delayed retirement, and to save is through changing the way they live in small, significant ways.

1. Conserve Home Utilities

Reduce the utility bills and save energy at home. Often, especially during the winter or summer months the heating and electric bills paralyze home owners, especially those still paying mortgages.

Take the tiny steps to decreasing that utility bill by shortening the length of showers, washing the dishes, the number of times you wash clothes per week. Turn off lights when possible. Unplug power adapters to computers, tablets, and cell phones that can consume costly electricity. During winter and summer, keep the thermostat at a reasonable temperature and do not change it often. Maintaining a consistent temp ensures less electricity, gas, or oil usage.

If possible, perhaps invest in an energy efficient dishwasher, washing machine, or other household appliances. More energy efficient homes and eco-friendly houses are popping up everywhere. Consider the investment of roof solar panels if you have the necessary funds or think the investment is worthwhile after a consultation.

If you’re not overly reliant on cable television and internet within the home, then eliminate that costly monthly bill. Most individuals have internet access via their smartphones when home. Save the long computer tasks for a couple hours at Starbucks, the local public library, after hours at work, or any places of business that provide complimentary Wi-Fi.

2. Rent to a Tenant

After the kids moved away from home and went off to college, it’s time to start considering renting their rooms. A tenant will help pay the utility bills and even their extra rent contributes to a mortgage. When maintaining a house, the living expenses can grow out of control quickly.

3. Downsize

As individuals grow older, maintaining a larger house proves more difficult. Older parents don’t have the time, money, or resources to maintain a large house that was once necessary for their families.

Fight the urge to keep every piece of furniture, old stationary bikes, and anything you might find useful one day and downsize your home. Those individuals in their 50s or older lived through countless shifting economies that leave them with a frugal mindset. Instead donate, sell, or trash the unnecessary items in your home. Rent or sell the house and move into a smaller condo or apartment.

4. Credit Card Benefit Programs

If you failed to do so already, apply for one or two credit cards that boast fantastic reward programs. There are countless credit cards offered through VISA, American Express, Discover, Capital One, and Chase that provide numerous cash back opportunities on daily purchases such as gas, food, eating out at restaurants, online shopping, and even going to the movie theatre. You can earn redeemable points on travel for cash or free flights.

5. Short Term Loans

When entering old age, it’s important to know your financing options, especially in the event of unemployment that creates financial emergencies. Absorbing unemployment in your 50s could very well be nightmarish initially. Don’t let that unfortunate experience side track you financially.

While searching for a new job or in between jobs, there are lending options available to help pay for living expenses such as groceries, gas, rent, or utility bills. Explore the options of personal loans through lending institutions such as the ones available at Instaloan.com or with friends, credit cards, payday loans, and short term bank loans. These borrowing options save money in late payment fees, late rent payment charges, and related expenses.

Image Source – colourbox.com

Save Your End-of-the-Month Budget with Coupons

 (Photo credit: rose3694)

We may go freely and a little bit arrogant at the beginning of the month. The wallet is still thick and the card is still fully filled. We go to buy some things and spoil ourselves by other things. However, this joy is only temporary, if we can’t control our financial flow. At the end of the month, you cannot hear louder voice than your wallet’s cry. 

If only you were a little bit diligent and organized, you might save lots of money while also having fun at the same time. How can it even possible? Thanks to shopping coupons, everything is sold at so much cheaper price than your budget affords to buy.

Hunting for coupon for some people is troublesome. Some people even don’t care about the coupon. Well, not until they reach the end of the month. You may underestimate 10% of something, however, 10% of many things can possibly equal to hundred dollars! 

Imagine if you combine all your coupons, you can get lots of price cut, which if they are summed up, they can save you from the atrocity of late month. Is coupon hunting troublesome and time consuming? It depends on your perspective and on how you do it. Fortunately, here are some tips you can adopt:

• Think about how coupons can save your budget until the last day of the month. Don’t give up from the very beginning or in the middle of way. Since you will go through the entire month, so start it by planning the spending for the entire month as well. Learn your spending habit and things you would always buy every month.
• Everyone has their own special spending target. Girls, for example, will spend some money for skin care every month. So, were you that girl, your target would be to look for skin care’s coupon. If you can’t find the coupon for your special need, then you can cover it with other coupons. Groceries’ store coupon is the most common coupon you can get.
• What? You don’t have time? Then you can gather the coupon side by side with doing your daily activities. When you are searching for news in the virtual world, spend some minutes to open some stores’ website. 
• Don’t forget to get their email. Some stores allow you to get coupon upon your request. You now can also save with coupons from the mail. Some large stores would ask you to register to their database and they will send you coupon through mail! Whenever you are reading a newspaper, mind to pay attention on advertisement page to search for the coupon. Is it time consuming? No.
• The amount of coupons in the mall is so much. Whenever you go to the mall, spare some times to take their flyer, especially from your favorite store. Learn their discount schedule as well. Normally, a store have different and specific discount schedule.
• Last, don’t forget the expired time. Normally, coupons have deadline, so don’t enjoy collecting the coupons too much to the extent you forget when they end.

Celebrity Bankruptcy- A Lesson in Finances

Nothing catches the attention of the press quite like a celebrity wedding, except maybe a celebrity bankruptcy. There’s something captivating about watching someone go from a multi-millionaire to bankrupt in the space of one news article, and it leaves us wondering, “How did this happen?” It seems the bigger they are, the harder they fall, but celebrities who go bankrupt have mostly made the same types of financial mistakes that everyone else does, albeit on a bigger scale.

Living Within Your Means

To live within your means is to keep your expenditures each month lower than your income. It seems simple on paper, but many people struggle with this concept, even celebrities. In the case of the exceedingly rich, it seems their lavish lifestyle becomes an entity of its own, requiring more and more funding until it finally breaks the bank. For the average person, life changes, like the loss of a job, can turn a comfortable situation into an uncomfortable one very quickly. Living well within your means, leaving lots of wiggle room for savings, can give you a cushion in hard times that can protect against financial ruin.

Don’t Bank on the Future

Many of the most glamorous celebrity bankruptcies stem from one hit wonders and other flashes in the pan who were planning on being a lot more famous. They receive their first big paycheck, and plan a whole lifestyle around it, assuming that more is on the way. When their 15 minutes of fame are over, and the money stops coming in, they’re headed for bankruptcy court.

The lesson here for the common man is that you should never put yourself in a position where you’re spending money you haven’t been paid yet. If it looks like you’re about to secure a new contract, or your recent job interview went really well, do not take this as a sign that you can go out and blow your savings. Just pat yourself on the back, hope for the best, and continue living within your current means.

Supporting a Habit

Celebrities often cite supporting bad habits as reasons for their bankruptcy. They get in over their heads because of drugs, gambling or other high roller vices, and stop paying their other bills. While our bad habits might not be as newsworthy, they can still put us in a bind budget wise. Some of our unprofitable bad habits include things like using credit cards to purchase luxury items that we can’t afford, or prioritizing wants over needs.

Pay the Taxman

It seems like just about every big name celebrity bankruptcy includes an unfathomable amount of money owed to the IRS in the form of unpaid taxes. It doesn’t matter how important you are, Uncle Sam still takes his cut. When you fall behind in taxes, the IRS can seize your assets and garnish your wages in order to obtain what’s owed to them, and this can leave you with little or no money to pay your other bills, and headed for bankruptcy. The worst part is that bankruptcy doesn’t even include IRS debt in most cases, so you’ll still have to pay your taxes in the end.

The best thing to do is take a lesson from high profile celebrity bankruptcies, and avoid this and other pitfalls altogether.

Tiecen Anderson
In her former life, Tiecen worked in sales and marketing for a large insurance company. Before starting a family, she decided to switch gears and pursue a career that would give her a little more time at home. She finished up her degree from California Sate University in 2008 and started picking up work as a corporate web content writer. She enjoys learning new things every day as she works with a wide variety of clients, like Rulon T. Burton

5 Questions We Should Ask Ourselves about Wine Consumption among the Elderly

We all hear that wine is healthy as long as we do not go over the line of decency. However, there should be more interest given to this topic. We should ask ourselves, when hitting a certain age, the “why”, “when” and “how” regarding wine consumption among the elderly; all in order to enjoy a happy healthy retirement and quality time with family, grandchildren, friends. So here are five questions you should ask yourself about wine. 

Q1: Can Wine Cure Certain Health Conditions among the Elderly?

The answer depends on the type of health condition. A 1997 study tries to explain if wine can cure dementia. Findings in this research study suspect that alcoholism may be a possible cause of dementia, associated with deficiencies in nutritional habits. Relationships between moderate wine consumption and this particular health condition were explained, with no factors such as social, medical or psychological interfering. It was also demonstrated that moderate wine consumption would not affect people with this medical condition nor would it become a cause of this particular health condition. It would be premature to say that moderate wine consumption could cure dementia, but it could definitely improve blood circulation and heart conditions. An indirect benefit would exist. 

Q2: Is Wine Beneficial for the Physical State of the Elderly?

The answer to this question is given by a recent study published in the HuffingtonPost. Contrary to common belief, wine would not make the elderly feel physically unsteady when drinking in moderation. The Resveratrol, a compound found in red wine can actually improve senior mobility and prevent unwanted accidents such as falling. The study was made using old lab mice that went under a rich diet of Resveratrol for 8weeks. Of course, this implies the person to not have a mobility condition, but the findings provide exciting news. 

Q3: How Much Wine Should the Elderly Consume on a Daily Basis?

This question is indeed a tricky one. While experts point out the dangers of alcohol consumption over a long period of time, they do say that one drink per day is acceptable and will not represent a risk. One drink per day is equal to the following: a) Beer lovers can drink one 12-ounce can or bottle b) Liquor fans can consume one 8-9-ounce can or bottle c) Hard liquor fans can drink one 1.5-ounce (shot glass) or gin, vodka, tequila etc. d) Wine lovers are allowed one 5-ounce glass of white or red or rose wine. Word of advice: never combine or mix them. Just keep going for one type of drink. 

Q4: How Can I Deposit Wine Bottles in Order to Keep the Wine Healthy?

As you might know, the way you deposit the wine bottles can certainly influence the quality of the wine and indirectly, your state of health. Wine that has been wrongly deposited can alter your overall health, while wine that had been properly deposited can be beneficial for the consumer. Plus, deposited correctly means it can maintain and even grow its flavor, aroma. As they say, the older it gets, the better it tastes. In order to correctly deposit your wine bottles, it is highly advisable to use a wine rack, especially for home depositing. Wine racks are usually made from metal or wood. In the old days, the wine was stored in wooden wine racks, but metal works just as fine, as it is more stable in time. 

Q5: What Type of Wine Is Most Recommended for the Elderly?

The answer to this question depends on personal choices, after all. Some people prefer white wine, others prefer red wine. As mentioned earlier, there are more studies that suggest red wine is better than white, especially for the elderly. Red wine contains that special compound called Resveratrol which improves mobility and prevents you from unwanted accidents. But either way, you should choose depending on your heart’s content. Word of advice: If it is in moderate quantities, a glass of wine per day can certainly keep the doctor away. Do you have any other questions about wine consumption among the elderly?