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Archive for the ‘home ownership’ Category
I know Halloween was last week, but let’s keep the fun alive with some financial horror stories. Didn’t you love horror stories as a kid? I liked them…until I tried to sleep. Then, more often then not, I spent the night staring at the ceiling, sure that at any minute some disconfigured arm would grab me from under the bed.
The bad news is that we all have friends who have real life financial horror stories. Their money problems make it difficult to sleep. Maybe you have those issues. There’s good news: many of these horrible stories we can fix simply by turning on the lights: if we know they’re out there, we can avoid them or find ways for them to vanish:
Horrible Story #1) There once was a man who paid an annual fee on his credit card! There’s no reason to pay annual fees for cards unless you’re a high-powered user. Too many cards are available with no fees that still give you a low interest rate and reward points. Only pay fees if you find a card which you are certain will be justified by the rewards that are unavailable from a non-fee card.
Tip: Use online comparison sites to determine which card best meets your needs without paying a fee. (more…)
Posted in budget, Credit Cards, Financial Planning, home ownership, Income/Expenses, Internet Shopping, money plan, Saving Money, Taxes | No Comments »
Posted by Miata | November 8th, 2012
 For most creatives, we’re comfortable working without a net. Many of us have gone months or maybe even years without a stable income. Some are amazingly agile at finding just the right resource at the perfect time. Like a trapeze artist on the high wire, we find a way to make it work.
That’s why the concept of insurance is so foreign to most of us. When you’re a high wire artist, your first thought probably is, “Why waste the money?”
Unfortunately, just because you’re comfortable on the high-financial-wire, those around you may not be. Today’s column is too short to go over ALL of the things you need to know about insurance, but we can cover the basics that most people should know:
Car Insurance: You must have it if you’re driving. If rates are a problem, look online. Many times companies such as Amica, Geico or Progressive will beat traditional insurance firms while keeping the quality of your coverage high.
Tip: Ask for a full list of available discounts. You may qualify for multi-policy, association and safe driver discounts, among others. A friend’s child has good grades in school, so Progressive awarded him a discount when he began driving. (more…)
Posted in Articles, budget, home ownership, Insurance, money plan, Uncategorized | No Comments »
Posted by Miata | October 4th, 2012
Hire a qualified home inspector before you purchase a home. Any seasoned realtor will strongly advise this, but I’ve witnessed people working without a professional who skip this step to save a few dollars.
Don’t make that mistake.
When my husband and I were searching for our first home, we fell in love with a sweet little house. During the inspection it was revealed that its foundation was completely collapsing!
A house could be filled with mold, have water damage, leaky pipes, a furnace that’s about to go kaput…and many other problems you might not catch—mostly because you’re too in love with your potential new home to notice the flaws. Even if you’re skilled at real estate, it’s valuable to have another set of professional eyes.
Tip: Don’t send the home inspector to the property alone and settle for reading the report later. If at all possible, accompany her/him through the property. Often they’ll point out valuable information that never makes it into the report. You’ll also be able to read nuances from the inspector about which problems should be fixed immediately which can wait.
Posted in home ownership, ProsperiTIP, real estate | No Comments »
Posted by Miata | April 25th, 2012
Interest rates are low. Most of the time it’s wise to ignore anyone who tells you “you really need to….”, but believe me, you should check the interest rates of all your debt before interest rates rise.
…and when are interest rates going to rise? That’s the problem; I don’t know. Therefore, I recommend you do it right now.
Before We Begin 
Make sure you read my post from two weeks ago: How to Take Advantage of Low Interest Rates. It lays out the simple steps to check your credit. You don’t want any surprises if you end up filling out applications to lower your interest rate.
Today, we’ll focus on three areas: your home, auto and credit cards.
How to Refinance Your Home
1) Compare rates through several lenders. This is done easily through a mortgage broker or an online comparison site. While many lenders appear to have different rates, you’ll find those with lower rates generally have higher fees. On the inverse, those with higher rates often have lower refinance costs. Generally, I prefer lower cost mortgages (which often means a slightly higher rate).
2) Gather information about each type of mortgage. Home lenders offer two basic types of mortgages: fixed or adjustable. While there are many iterations of each type, here are some you’ll see regularly during your search:
a) A basic fixed rate mortgage comes in a 15-year and 30-year variety. Usually, a 15-year mortgage will have a slightly lower interest rate than a 30-year option.
b) Adjustable rate mortgages often keep the rate stable for 1, 3, 5, or 7 years, before changing. Usually the rate will change annually after the short fixed period.
(more…)
Posted in Credit Cards, Debt, home ownership, interest rates, Saving Money | 1 Comment »
Posted by Miata | February 23rd, 2012
 I’m thinking of buying my first home! One quick question: how do I decide between a 15 and 30 year loan?
Gary
Congratulations, Gary! That’s a big step, and I’m happy to help you with this huge question. For most people, taking on a mortgage is the largest debt they’ll ever owe. It’s important to do it right.
I’ve noticed some advisors like one type of mortgage better than another. I think each type exists for a specific reason. Unfortunately, this means I won’t be able to answer your question directly, but I can give you some tips to help along the way:
First, you didn’t ask about adjustable rate mortgages–where the initial interest rate is low but can adjust to a higher amount after a specified period of time–but for the vast majority of people, they aren’t a great idea right now. Interest rates are at near all-time lows, so locking into a fixed rate mortgage is best for most home buyers. The exception? If you are absolutely certain you’re going to move again soon, an adjustable rate will save you money.
15 year loans are best for people who want to pay off their mortgage quickly and need the forced discipline of a larger payment. The upside of a 15 year loan is that you’re guaranteed to be mortgage-free in 15 years (assuming you remain in the home). The downside? If you lose your source of income, the monthly payment on a 15 year mortgage will be much harder to meet than a 30 year payment.
30 year loans work best for people who want the flexibility of a lower mandatory house payment. It’s a mistake to think that people with 30 year loans will pay them off over a long period of time. On the contrary, I’ve met quite a few successful savers who chose a 30 year loan and then paid significantly more than the amount due each month. Why? If they ran into financial trouble, their monthly payment was pretty low, and the chances they could meet the payment was better than if they’d bitten off the higher 15 year payment.
Don’t take out the 30 year loan and “hope” to make extra payments. Set up an automatic payment plan for more than the requested amount so that you’re still forced to pay your home off early.
I hope this helps and I wish you happy house hunting! Send us a picture! 
Posted in home ownership, interest rates, real estate | No Comments »
Posted by Miata | January 20th, 2012
 I want to sell my house. With all of the foreclosures, is this actually a good time to be in the real estate market?
-Sherry
This is a tough question Sherry. Sadly, there isn’t a great answer. If someone absolutely loves your home, they may overpay, even in this economy. Wouldn’t that be great?
I will give you three points to consider when deciding whether to sell in this market:
- Are you upgrading to a larger/more expensive home or downsizing? Here’s why this is an important factor to consider: there is a good chance that if your home has slipped in value, so has the home you’re about to purchase. If the properties are in similar markets, you’ll lose some money on your current home but will then save a bundle of money on the new property. If you’re about to spend more money by upgrading, this works in your favor. When downsizing, you’ll lose more on your current home than you will on the one you purchase.
- Why are you moving? Interest rates are low. If you’re moving because you can’t afford the house payment, will a simple refinance work? Would there be ways to take advantage of the interest rate climate that involve less upheaval?
- My friends who are real estate pros tell me that there is no single “housing market.” There are thousands of little markets. How do your current and prospective markets compare? If your market is depressed but the area you’re moving toward is still booming, maybe this isn’t a great time to sell. If the area you’re moving to is depressed, but yours is holding up well, you may find a steal.
Selling a home is a difficult decision because real estate is usually the most expensive item on a person’s net worth statement. Take your time to make a good decision you’ll be happy with—because you’ll literally live in it!
Posted in home ownership, real estate | No Comments »
Posted by Miata | October 27th, 2011
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