JoeTaxpayer

The housing market is still at almost record lows. Though the rates have been steadily rising the past year or so, they are still far below the rates that they had before the market fell. These days, even people who are sitting comfortably in their mortgages are debating refinance due to the extremely low rates that are available on home loans. You can use the money on anything you wish, from working on your yard to consolidating your existing debt. There are a few things to consider, however, when you are thinking of refinancing your home.

Value of Home

One of the reasons that it has become so easy to get a low home loan is the value of housing has dropped considerably in the past few years. There are many private residences that have dropped over 40% of their value in just a few years.

The reason that you can get loans so cheaply against these homes is that they haven’t proven to have a steady worth. Basically, your house isn’t a proven asset in today’s market. Banks make money on high risk loans. So when you are looking at a mortgage refinance, remember that the bank may consider you a risk.

How Long Will You Live There?

If you’re not going to live in your primary residence for more than five years, it is not a good idea for you to go in for a refinance. The reason for this is that the first five years on a home loan are not really paying against your loan. Instead, what you are paying on is mostly the interest and the fees that are associated with your loan. The loan itself is not going to be paid back or have a dent made on it for at least five years. If you’re thinking about refinance, then it’s important to figure out how long you intend to remain there. If you are not at the level of income that you can afford to take a major loss on your refinancing, then don’t obtain one unless you’re certain you’ll remain in one place for more than five years.

Other Loan Rates

What are your goals? Do you want to landscape or do something to increase the value of your home like hardwood flooring? Do you want to save money for college or purchase a vehicle? Is your final goal a debt consolidation where you can lump your major debts under one umbrella? Depending on what your final goal is, your main bank may have a better option available to you than a home refinance. Check with loan managers at your bank to make sure you’re going with the best option before you proceed with a home loan. There are times where debt consolidation loans can be acquired for less risk and lower rates than home loan refinances.

Regardless of what your final choice is for your lending needs, a home loan may be in your immediate future. However, it’s important to remember that this avenue isn’t the right one for every borrower. If you’re not going to remain in your home for an extended period of time, then you don’t want to be tied to that home via another line of credit. Even if you are going to remain in the home for an extended period of time, you may not get the best deal or rate from your home refinance. In the end, your best course of action is to discuss the issue with your bank’s lending agents to figure out what sort of refinance or loan is best for you. Consumers Advocate.org is also a great resource for reviews of lending agents comparison rates.

This was a remarkable week for guest posts, here’s the latest from a partner –

When you need financial assistance and want to invest you need to find a professional who can successfully balance the quest for sound advice with the need to make a living. There have been several scandals recently whereby financial advisors put their own needs first, at the detriment of the clients, losing them millions in ill advised investments. To avoid this you need to find an advisor who is a fiduciary- someone who is legally required to put your interests first. Only registered investment advisors are obliged to adhere to this standard so a request to provide certification is reasonable.

A broker or advisor who works for commission is not bound by this fiduciary code; they are only obliged to assure that that an investment is suitable. However, it can be a mistake to assume that your advisor has your best interests at heart purely because they are a fiduciary. Although they are obliged to act in the best interests of the client there are many times that they act otherwise due to increased returns available. For example, if you win big at a site like www.androidcasino.ca your advisor might wrongly assume that because you won the money you would be happy to invest it in a high risk scheme rather than in a solid, long term investment.

To ensure your best interests are always paramount you need to exercise control over your portfolio and have ongoing contact with your advisor. A registered financial advisor is not allowed to charge commissions for investments; instead they charge a flat fee or earn a percentage of the assets they are managing. This helps to remove conflict of interests and stops them from following a hot tip or backhand that will benefit them rather than you, as no option will compensate them more than the other.

Some in-depth research into your potential financial advisor’s history is always recommended and you can determine whether they have a history of negative qualities such as:

• Selling a product instead of advice
• Maximised risk regardless of goals
• Failed to maintain basic investment and fiduciary standards
• Losses that exceeded the standard benchmarks

If these are prevalent qualities rather search for someone with a better track record and who you are confident will have your best interests at heart.

A guest Post –

One of the very few things that the vast majority of Americans have in common is that most of us have credit card debt! Exactly how much credit card debt, who knows? I’ve seen estimates as low as around $7,000.00 per household and as high as $15,000.00 per household. My guess is that it’s somewhere between. So, let’s say the average household has $10,000.00 worth of credit card debt, that’s a lot to pay back!

The fact that most of us have overwhelming amounts of credit card debt leads many of us to look for a great way to get some help. But, when we search for ways to get out of debt, all we find is a bunch of cool ways to save a lot of money and…oh yea…they hurt your credit score! But, is there any way to become completely debt free without harming your credit score? Of course there is!

Debt Really Isn’t That Difficult

The first thing that you need to know is, although finance guru’s make it seem like debt is a huge mountain to climb with all kinds of twists, turns and obstacles to tackle, it’s not. Debt is very simple, it’s just debt! There are only a few things that you need to know to really come up with your own, great debt relief plan. Here they are…

Over 80% Of Consumers Use Estimations To Live On Mental Budgets – One of the biggest problems that consumers face when paying off debt is, they never know exactly how much money they will be able to pay next month. Not being able to come up with a consistent monthly payment leads consumers to just paying the minimum and keeping them in debt for years and years to come. The first thing that any debt relief program should consist of is an accurate budget spreadsheet! You can make yours free on Google Drive!

It’s Possible To Negotiate Cost With Lenders – Lenders are willing to negotiate in times that require it. For instance, if they feel like they are going to lose your business, they may be willing to negotiate your interest rate. Not to mention, your interest rate will account for the vast majority of fees you will pay for your credit card. Also, in times when lenders feel as though they must negotiate the principle balance or they may never see the money, credit card companies are generally willing to negotiate the balance. Keep in mind, balance negotiations will harm your credit score. That being said, there are a few things you really need to know about these types of negotiations, so, if you want to do this, please read…How To Negotiate With Credit Card Companies.

Balance Transfer Credit Cards Are Available For Those With Good Credit – If your lender isn’t willing to negotiate with you, you may be able to qualify for a balance transfer credit card. With these cards, you can transfer your debt to an account with a lower promotional and long term interest rate. However, when taking advantage of balance transfers, always think of transfer fees and long term rates. In my experience, I’ve noticed that many people skip over these crucial factors and end up kicking themselves for it later!

Your Highest Interest Rate Debt Is Your Most Important Debt – No matter how much you owe total on each of your debts, your highest interest rate debt is going to cost you the most per dollar to borrow. That being said, you should always focus on your highest interest rate first and use the funds that become available once it is paid off to move to your next highest interest rate debt.

Lets Put It All Together

OK, now we have all the pieces, let’s make a plan. Start by making a budget spreadsheet. If your not sure of how to do this, read…How To Make The Ultimate Budget Spreadsheet. Next, use your spreadsheet to organize your debts from highest interest rate to lowest and start calling to negotiate interest rates, or balances in extreme cases. If your lender isn’t willing to negotiate rates, consider balance transfer credit cards. Once you’ve got your rates to where you want them, create a plan that attacks the highest interest rate first leading to less cost overall!

This article was written by Joshua Rodriguez, proud owner and founder of CNA Finance and avid personal finance journalist. Join the conversation with Joshua on facebook!

Len Penzo had an excellent post he first published two years ago, 9 Important Money Tips Every Dad Should Teach His Kids. A great way to start the Father’s Day festivities. Nice work Len. Letterman would be proud of you.

Ninja explained why, “I might take out a $30,000 401k loan just to piss some of you off.” Not me. Time would tell if this was a good move or not. You see, he can borrow at 1.75% which is a bit of a savings from the 4% mortgage, but far less than the long term 10% market return (or 12% if you are a fan of the David.)

At Money Crashers, 7 Legitimate Reasons to Delay Saving for Retirement, an interesting spin on why not saving isn’t always irresponsible. In fact, sometimes it’s the wise this to do.

Will Social Security be gone before I retire? Now, that’s the question. And the answer is part of a full discussion at Five Cent Nickel. A good read that may help put your mind at ease.

And last, Finally, PROOF That Costco Prices Are Cheapest. I’ve written now and then about Costco, but now, my friend at The Wealthy Turtle offers data, hard proof that Costco is a winner.

Happy Father’s Day!