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Saving Without A Budget



Saving Lots of Money Is Easy. I'll Show You How.



Updated: 2016-09-07T19:12:11Z

 



Some Items to Avoid Buying Cheap

2016-05-22T15:20:45Z

Buying the most expensive brand is typically not necessary, but when it comes to some items, price vs. quality comes into play.  If quality is less, you may find yourself replacing more often, or using more to get the job done.  Instead you should be finding discounts on high quality items, with in-store sales or […]Buying the most expensive brand is typically not necessary, but when it comes to some items, price vs. quality comes into play.  If quality is less, you may find yourself replacing more often, or using more to get the job done.  Instead you should be finding discounts on high quality items, with in-store sales or clipping coupons. Toilet Paper When you purchase cheap toilet paper it is typically single ply, so in order to use a needed amount, you will need to unroll more, fold it over, and even seeming like you used the entire roll compared to a normal two-ply roll.  The cheap single ply probably is not the most comfortable to use, and if you buy cheap two-ply paper, you can expect it to feel like sandpaper, and will probably be a little red after.  Spend a little extra money and buy the good stuff, you will thank yourself. Paper Towel For simple wiping down counters, cheap paper towels will soak up fast and require you to pull off more sheets.  For spills, forget about it, you will have soaked and torn pieces of cheap paper towel everywhere.  Spend the extra money and buy a name brand or even a big box brand and avoid brands that contain the word “value”. Bedding You sleep in your bed every single day, upwards of eight hours a day, so why would you want to compromise sleeping, and your back, on a cheap mattress.  If you find yourself being tired with a stiff neck and back to go along with, it might be time to replace your cheap mattress, you will not regret it.  Same goes with sheets.  They do not have to be the highest Egyptian cotton, but something at least in the hundreds in thread count will make for a much more comfortable and cooler temperature sleep. Investments Investments probably sounds like an odd item to include in this list, but it’s probably the most important of them all. Too often you find people investing in penny stocks that go bust and they lose all of their money! Just like with everything else, when it comes to investments, you get what you pay for. Go with a reputable company like Banc De Binary, and check out their binary options investments. Paint I finally realized I needed to stop using cheap paint when I tried to paint my ceiling recently; using three coats and it still looked bad.  I purchased a premium brand that was only slightly higher in price per gallon and it made the world of difference, finishing the rest of my house in that brand.  Although I still put on two coats just to be safe, I could have even got away with one coat, but the coverage in just spending a little more money will thank your arms, patience, and wallet. [...]



CFDs: Their “Why” and “How”

2016-03-08T17:16:36Z

A CFD or Contract for Difference refers to a tradable entity which reflects the movements of the asset underlying it. The trader goes on to make losses or profits in accordance with the movement of the underlying asset in relation to the position taken. Notably, the underlying asset is never owned. It is an actually […]A CFD or Contract for Difference refers to a tradable entity which reflects the movements of the asset underlying it. The trader goes on to make losses or profits in accordance with the movement of the underlying asset in relation to the position taken. Notably, the underlying asset is never owned. It is an actually an agreement between the trader and the broker whereby they agree to pay each other the difference between the price of the asset (like EUR/USD, Gold etc) during the time the contract is made and the price when you actually decide to terminate the contract. Contracts for Difference: A popular trading option Now, over the past few years, CFDs have become an immensely popular way in which online traders trade commodities, stocks, indices as well as currencies. Sadly enough, there are still a few people who are apprehensive of trading with the help of CFDs since they are unable to understand the very concept of this form of trading. Once you are able to understand what it is all about, you will be in a better position to gauge whether or not you should, at all trade with CFDs. Here is a glimpse of how they work. Contract for Difference: How it works Though it sounds pretty mysterious to start off with, CFDs actually work like other stocks. A simple example will help you understand. Today, if you have invested $100 dollars in a particular stock and if the price of the stock rises by 20% to touch $120, then your contract would go up by 20% as well. If you decide to close the stock at that point of time then you would end up making a profit of 20%. And, if you decide to close the trade while the price has fallen by 20% then you will end up incurring losses worth 20%. One of the most notable advantages of trading with CFDs is that you can actually access higher leverage than what you would have been able to do in case of traditional trading. The standard leverage in the CFD market begins from as low as 2% margin requirement. The margin requirement may go up (even up to 20%) in accordance with the underlying asset. Lower margin requirement means minimum capital outlay for trader and higher potential returns. In fact, it will not really be an exaggeration to say that lower margin requirement is one of the reasons why traders prefer investing in CFDs. However, do remember that more prudent traders will warn you against relying totally on the buy and hold strategy. Make sure you have proper stop loss and risk management strategies in place so that you can actually go on to reap long term benefits. Amazing Piece of News for CFD traders! Don’t Miss! Notably, CMC Markets brings to you its Next Generation platform which enables you to trade commodities with as little as 0.4 point spread with an initial margin requirement of 0.50%. Do check out the website for further details. [...]



Challenge a Will: Save Your Inherited Asset

2016-02-26T13:14:39Z

Inheritance is a big part and also an identifier of what’s your standing in the family. As long as you are a legal descendant of the testator, or writer of the will, bound by blood or by law, you can claim what is rightfully yours. Due to the fraudulent act or influence of some greedy […]Inheritance is a big part and also an identifier of what’s your standing in the family. As long as you are a legal descendant of the testator, or writer of the will, bound by blood or by law, you can claim what is rightfully yours. Due to the fraudulent act or influence of some greedy individual around you – who sees this as opportunity to take away an asset, or therefore challenging the testament, you need to make sure that you know how to handle such scenarios. Remember that there’s nothing worse than losing someone important in your life and at the same time losing the chance to experience what is legally entitled to you. An inheritance is an investment provided by a loved one, but there are instances when a will and testament are improperly written or falsely drafted. If you find yourself at the losing end and you think you deserve the property more than anyone else then be prepared to be in court. To challenge a will is difficult, but the fact that owning a house gives loads of benefits, which will definitely help you in the future, you need to work hard to protect this asset. Some of the benefits of owning a house are: Appreciation of Value Shield Against Inflation Property Tax Deductions Capital Gain Exclusion Here are the steps you need to do to ensure a house that is supposed to be your inheritance will be transferred legally: THE AFTER ACTION If you have read what is in the will, seek some legal adviser to help you in interpreting it; always trust your guts when identifying if there are any suspicious elements in the will. For the after action, understand first the content and investigate what caused the problem. You should be able to confidently point out your grounds for challenging the will. Those who succeed in challenging a will do so with the help of a great lawyer. Seek help from a trusted lawyer who fully understand your situation and can further explain what actions shall be done. SPECIFIC LAWS TO CHALLENGE A WILL There are two kinds of law that can help you claim your inheritance if you ever feel like there was a bias when the will was made. The first encompasses the promises of the deceased person to an individual even when they are not literally related by blood. Under this law, a person given such right need not to be personally written by the will, as long as he can prove that he was assigned to a specific property in front of the court, then he will be free to claim his right on said property. The next one deals with the protection of family members and their inheritance of the deceased person’s assets. Subject to this provision is filing an appeal to the court, claiming you haven’t received any portion of the inheritance. DURATION ACCORDING TO COMPLAINS Generally, there is a given duration for you to file an appeal to the court in accordance with the law. As stated by the law, there are 3 types of complaints: Inheritance act claim for maintenance, beneficiary making a claim against an estate, and fraud or forgery. In the first type you are given 6 months after the grant of probation, while the claim against an estate has a 12-year window after the death of the will maker. And lastly, there is no time limitation given when it comes to fraud. Do not forget to comply with these guidelines in order to increase the chance of the court ruling in your favour. A house, after all is a good investment for you and your family’s future. [...]



Investing in Foreign Currency Through Forex Trading

2016-02-17T19:42:12Z

If you are a smart investor looking for new avenues for getting good returns on your investment, then investing in foreign currency is a great way to get good returns. Basically what is Forex trading? Well, it is as simple as buying and selling of foreign currencies in order to achieve profits from the fluctuations […]If you are a smart investor looking for new avenues for getting good returns on your investment, then investing in foreign currency is a great way to get good returns. Basically what is Forex trading? Well, it is as simple as buying and selling of foreign currencies in order to achieve profits from the fluctuations of the currency prices. It is as simple as it looks but it needs proper planning, skills, strategies and patience to become a good Forex trader. Benefits of investing in foreign currency Forex trading provides a number of benefits and therefore it is a good way of investing in foreign currency. Here are the top benefits received through trading currencies- Take advantage of the highest liquidity market- Forex market is the biggest financial market in the world and due to a huge number of traders trading in Forex market, it is possible to enter and exit a trade at anytime. There is always someone present to take the opposite position for you when you make a trade order. Availability of online Forex trading- Investing in foreign currency has never been so convenient. With online Forex trading you can take the benefit of trading currencies through your laptop or mobile phone with the convenience of the timings you decide. The online Forex trading platform provided by an online Forex broker allows you to trade online with your computer or Smartphone. There is no restriction that you stay at a place or be stationary. All you need is a computer device, internet connection and a trading account which you can use from anywhere. This flexibility offered helps the investors to trade freely and with a great convenience. 24 hour open market- Forex market is open 24 hours a day except the weekends which makes it convenient for the part time traders to trade when they want. They can trade in the night or day and trade with the convenience of their homes. Trading with margins- Most of the Forex brokers today offer trading on margins which means that you deposit only a small fraction of the total value of the trade order and enjoy multiplied gains from a relatively smaller deposit known as margin. Many brokers allow you to trade with just 1 percent of the total money as the minimum deposit required with them. Disadvantages Investing in foreign currency through online Forex trading has a number of benefits but there are some limitations too. In the time of high volatility in the markets, the risk to losses becomes high and therefore risk management has to be done. Since online Forex trading needs an online platform to trade some novice traders may be stuck in the technology and can perform some mistakes in the beginning. [...]



Find out about ways to save on fixed home loans

2015-11-21T16:31:15Z

Home, generally, accounts for the most expensive purchase for most of the borrowers out there. It remains one of the biggest investments made by us in our lifetime—at least in case of most of the borrowers. In order to ensure long term financial health, it is very important for you to invest proper time in […]Home, generally, accounts for the most expensive purchase for most of the borrowers out there. It remains one of the biggest investments made by us in our lifetime—at least in case of most of the borrowers. In order to ensure long term financial health, it is very important for you to invest proper time in finding the best mortgage offers so that you can pay off the loan.. One of your major responsibilities as a borrower would be to determine whether you should settle for fixed rates or variable rates. Fixed rates or adjustable rates? At first, it is important to understand the basics of these major types of loans before determining which one you should choose. The fixed rate does not change in the course of the loan term. Irrespective of whether you are securing the mortgage for 5 or for 30 years, the interest rate attached to the loan does not change throughout the loan tenure. On the other hand, the variable or adjustable rates fluctuate in accordance with the market rates. If you settle for variable loans, you will have to pay rates that have altered in correspondence to the hike or reduction in the market rates. If the market rate increases you will have to pay increased rate and if it decreases the rate of interest on your loan will also plummet. Both the options are equally popular in the market- since the number of borrowers settling for fixed rates (as they are apprehensive of the economic volatility) is no less than the ones opting for variable home loans since they are all game for making the most of the (possible) future reduction in rates. Discussed below are a few ways in which you can save on fixed home loans. Consider shortening the loan tenure If you reduce your 15-year mortgage to a 10-year one then you will end up saving thousands of dollars. Reducing loan tenure implies that you are paying of loans faster and are getting the rates on your loan reduced as well. Pay off lump sum If you have been fortunate enough to receive a lump sum from any source or have been able to save up a substantial amount of money then you can use it to pay off the outstanding balance. By doing this you will also get to reduce the overall interest costs on your loans. Make sure you are considering the loan options offered by several lenders at the same time. Yes, it is very important to shop around considerably for the rates of interest charged by different companies at the same time. There might as well be subtle differences between the rates charged by different home loan companies. For instance, the fixed rate interest home loans found at NPBS are different from the ones spelt out by other companies. Kindly ensure that you are not zeroing in on a name randomly but only after comparing the rates of interest thoroughly. The global economy is faced with unprecedented challenges today. Economic volatility is the order of the day. Fixed home loans have rendered a sense of security to borrowers in such a scenario. You can only expect to make the most of these loans by learning how to save on these loans. [...]



How to Budget for a House That You’ll Rent Out

2016-09-07T19:12:11Z

Investing in a home that you can rent out, whether it’s a single-family or a multi-family property, is a great way to make some extra money each month. You can use this to pay off the mortgage on your primary residence or to pay off other bills that you incur, so an investment property is […]Investing in a home that you can rent out, whether it’s a single-family or a multi-family property, is a great way to make some extra money each month. You can use this to pay off the mortgage on your primary residence or to pay off other bills that you incur, so an investment property is a great way to give yourself an added level of assurance that you’ll always have the money you need to take care of your family. But how can you budget for a house that you’re planning on renting out? Continue reading for a few tips. Things to Consider Before Shopping Before you even begin searching for your investment property, consider the following: How much are you willing to pay, based upon how much you can actually afford? What type of rental property are you in search of? Do you have any particular neighborhoods or cities in mind? What’s the average rental rate for properties in the area(s) that you’re interested in investing in? In other words, how much can you expect to make? What’s the return that you’re anticipating from your investment? Set Up Financing Options A common mistake that many homebuyers make is that they start looking for properties before they’ve actually arranged their financing options. This can lead to issues in the long run when you realize, for example, that you can’t afford as much house as you originally anticipated, or when a house you want goes to another buyer who’s already been pre-approved for a loan. So before you head out and shop for an investment property, speak with a bank or lender to find out how much they’re willing to give you. Setting up your financing options ahead of time will make you a more prepared buyer, and you’ll be a step ahead of other buyers. Start Saving and Set Up Your Budget Once you answer the above questions, you should have a clearer idea of just how much house you can afford, and you should also have a better idea of how much you can generate in income from the rent that you’ll charge. When you have your budget in place, you can begin saving on a consistent basis, even if it’s just a small amount of money that you put aside from each of your paychecks. This will help you put together a down payment for your rental property. Consider Repair Costs Investing in apartments isn’t always a smooth endeavor, especially when you’re dealing with properties that have been previously rented out and may be in desperate need of repair. So in addition to budgeting for the actual home price, you should also have enough money set aside to make repairs to encourage renters to settle in and pay your rental rate. Now that you know what it takes to budget for a house that you’ll rent out, you can find the property that suits your needs and increase your monthly income easily. class="even-iframe" style="border: none; display: block;" src="//calculators.evenfinancial.com/index.html?&accessToken=5f073089-6c3a-4c6d-8114-05635d9f9201_7d79c322-954a-4a13-b182-6a114072e462&companyUUID=2703df1d-c4de-428b-85bc-7ecd89e76dde&calc=loan-search&backgroundColor=%23ECECEC&noOverlay=true&fontFamily=Open%20Sans&buttonTextHoverColor=%2347B27E&purpose=debt_consolidation" width="100%" height="150"> [...]



The Top 10 Best Ways to Pay Off Debt – Part 3

2015-06-13T16:26:27Z

Hello and welcome back for Part 3 of our 3 Part blog series on the Top 10 Best Ways to pay off your debt. We’ve already given you 6 excellent ways to do it and, in today’s final blog, we have 4 more, so let’s get started. Enjoy. Use the threat of bankruptcy to renegotiate […]Hello and welcome back for Part 3 of our 3 Part blog series on the Top 10 Best Ways to pay off your debt. We’ve already given you 6 excellent ways to do it and, in today’s final blog, we have 4 more, so let’s get started. Enjoy. Use the threat of bankruptcy to renegotiate terms with your creditors. While this might sound a bit unethical or even sleazy, the fact is that if you’re deep in debt and have nowhere to go except bankruptcy, letting your creditors know this might be the impetus they need to work with you. The first thing you need to do is let them know about your situation and tell them that, unless they’re able to renegotiate their terms with you, bankruptcy will be your only choice. Once they know this you can ask for a new and, hopefully, lower repayment schedule, or a lower interest rate. What you want to do is let them know that, unless they help you, they won’t be getting anything. In most situations you’ll find that creditors will do everything they can to protect themselves from getting nothing. Most will be more than willing to negotiate if they’re fearful that they won’t get any money and, frankly, you really don’t have anything to lose from asking. Borrow money from your 401(k) to pay down your debt. Most 401(k) savings plans offered by employers allow you to borrow as much as 50% of the face value of the account, or $50,000, whichever is the smaller number. Since interest rates are usually one or two points above prime, they are instantly cheaper than the interests on almost all credit cards. This makes using money from your 401(k) to pay down your debt an excellent option. Interestingly enough, the interest that you pay is not only lower but you pay it to yourself, not the lender, which is extra gravy for the goose. File for bankruptcy. This is really your last resort but, if there’s simply no way to pay down your debt using the other eight ways that we talked about in these 3 blogs, you might not have any other choice. Be aware that declaring bankruptcy comes with a number of substantial disadvantages, including the fact that your credit report will keep your bankruptcy on file for at least 10 years. This will make it extremely hard for you to get credit during that time. Also, most people don’t realize that it actually costs money to file for bankruptcy and, if you’re flat broke, you might not actually be able to. Bankruptcy laws have gotten much tougher in the last few years also and, while you might be able to file, you might not be able to get 100% relief from all of your debts. For example, child support, alimony, student loans, legal judgments against petitioner and taxes aren’t discharged when you file for bankruptcy. Don’t go into debt to begin with. While many of you might be saying “well duh”, the simple fact is that if you don’t go into debt you won’t ever have to get out of debt. That might be easier said than done but the fact is that nobody’s holding a gun to your head and telling you that you have to max out your credit cards, purchase the most expensive automobile on the lot or spend every last dime that you learn. If you’ve learned anything from our 3 Part blog series, hopefully it’s that paying down debt isn’t easy. If you want to make your life much easier, do your very best to not go into debt to begin with. We hope you’ve enjoyed this 3 Part Blog series and that it’s opened your eyes to the options that you have. If you have questions or comments, drop us an email or leave a comment and we’ll get back to you ASAP with answers and information. [...]



The Top 10 Best Ways to Pay Off Debt – Part 2

2015-06-13T16:22:21Z

Hello and welcome back for Part 2 of our 3 Part blog series on the Top 10 Best Ways to pay off debt. In Part 1 we gave you 2 excellent ways to pay down your debt, including something called “snowballing”.  If you’re set to learn a few more excellent debt payment methods, let’s get […]Hello and welcome back for Part 2 of our 3 Part blog series on the Top 10 Best Ways to pay off debt. In Part 1 we gave you 2 excellent ways to pay down your debt, including something called “snowballing”.  If you’re set to learn a few more excellent debt payment methods, let’s get started. Enjoy. Ask family or friends to lend you money. This isn’t exactly a method that your financial advisor will give you (although some will) but asking a family member or friend to loan you money to pay down your debt is still a viable option. In most cases you’ll get an excellent interest rate (or maybe none at all) and a little bit of extra leeway in terms of time to pay them back. It would probably be an excellent idea to have a written agreement and a clearly established repayment schedule in order to make sure that you don’t end up with a ruined relationship and resentment. Other than that, if your rich Uncle Bob has the money, why not ask? Use your life insurance and borrow against it. If you have life insurance with a cash value, you can borrow against that policy at rates that are typically far below those of commercial rates. You can also take a bit more time repaying the loan, but do repay it as fast as possible because, if you pass away before it’s been repaid, the outstanding balance that’s left on it will be deducted from the face value paid to the beneficiary, as well as interest. That might end up being a real burden on your loved ones, so do your best to pay it back as fast as you can. Take out a home equity loan. Home equity loans have been used for years to help people pay for all sorts of things and paying off debt is one of them. If you’ve owned your home long enough that it’s accumulated equity, getting a home equity loan, or HEL, line of credit is an excellent idea. The reasons are two; using the loan to pay down your debt allows you to trade and 18% loan for a 6 or 7% loan and, if you fully itemize all deductions on your income tax returns, a home interest loan is usually deductible. One problem that you definitely must avoid (and many don’t) is paying off your debts with a home equity loan and then starting to use the credit cards that you paid off, putting yourself into debt once again. The problem now however is that you not only have credit card debt you also have home equity loan debt. The point is, pay off your home equity loan before you start using those credit cards again. Use the cash in your savings account to pay down your debt. Many people look at this option as unreasonable, but using cash from your savings (and other investments) to pay down debt actually makes sense. Think about it this way; unless your savings account and other investments are paying 18% (before federal and state taxes) the debt that you pay down using that money would actually be the same as getting an 18% return with very little risk. In fact, as the interest rate on your debt gets higher, paying it off with your savings becomes much more attractive. That’s it for Part 2 of our 3 Part blog series on the Top 10 Ways to pay off your debt. We hope that some of the advice and ideas that you’ve heard have been helpful. If you have any questions you can drop us an email or leave a comment and will get back to you right away with information and answers. Of course be sure to come back for our final part, Part 3, soon. [...]



The Top 10 Best way to Pay Off Debt – Part 1

2015-06-13T16:17:50Z

You can throw your bills into the garbage or hide your head under her pillow but there’s no way to make debt go away. You certainly can’t wish it away and, with compound interest and 20%, it builds extremely quickly. That being said, there are a few excellent ways to pay off your debt and, […]You can throw your bills into the garbage or hide your head under her pillow but there’s no way to make debt go away. You certainly can’t wish it away and, with compound interest and 20%, it builds extremely quickly. That being said, there are a few excellent ways to pay off your debt and, lucky for you, we’ve put together the Top 10 Best ways to do it. Enjoy. Use the “snowball” debt repayment method. This is a strategy that more and more people using. What you need to do first is figure out which of your credit cards has the lowest interest rate and cross your fingers that you haven’t reached the limit on that card. If you haven’t, transferring money from a high interest credit card to a low one is an excellent idea. If that’s not possible because your balance is too large to fit on the card with the low interest rate, start paying the minimum on all of your credit cards except one of them and funnel the majority of your money into paying that card down as quickly as possible. Once you pay it off, do the same thing with the next card, continuing with this aggressive plan until all of them are paid off. It’s called “snowballing” and, as the amount of debt that you have decreases, the amount of cash that you have to pay off the others begin to increase, snowballing until all of your debt is paid down. You can do the same thing if you take advantage of a promotional offer on a credit line from your bank. For example, moving your money from a card with 18% interest to another one with 6% interest not only makes sense but allows you to apply the money you saved in interest towards the principal, reducing your debt even more. Of course banks don’t generally give money away, so make sure that you read the fine print closely. For example, the interest rate that you might be forced to pay after the introductory period has ended might be higher than the one you’re paying now. Banks have caught onto people who “card hop” and many now have a stipulation that says they can’t transfer any balances off of their new card for 12 months. If they do, the normal interest rate will begin retroactively. Again, read the fine print. Paying more than just the minimum for your credit cards and other bills. Millions of consumers pay the minimum on their credit cards and other bills every month, which is exactly what their banks hope that they do. The reason is simple; the longer a consumer takes to pay off their bills, the more interest banks make. Rather than playing the bank’s game, do your very best to pay more than the minimum whenever possible. If you’re on a budget (and you should be) you should be able to see where some extra money can be taken to do this. If it means skipping some luxuries like eating out or giving up your daily Starbucks latte, just bite the bullet and do it. Those sacrifices will give you the extra money you need to decrease your debt dramatically and, over time, save you hundreds and maybe even thousands of dollars in interest payments. It won’t be fun but, if you’re truly determined to pay down your debt and stop living paycheck to paycheck, it’s worth it. Those are the first 2 Best Ways to pay off your debt. Make sure to come back and join us for Part 2 and, if you have any questions, drop us an email or leave a comment and we’ll get back to you ASAP with answers and info. [...]



Looking to Tap Into Your Home Equity? Consider These 5 Factors First!

2015-04-26T18:02:31Z

Many homeowners in the United States were cut off from one of the most popular sources of funds during the recent housing bust, the equity in their homes. As home prices begin to recover however, many have started to once again Into their home’s equity in order to do things like consolidate their debt, pay […]Many homeowners in the United States were cut off from one of the most popular sources of funds during the recent housing bust, the equity in their homes. As home prices begin to recover however, many have started to once again Into their home’s equity in order to do things like consolidate their debt, pay for home renovations and also pay for other “big ticket” items that they need. In fact, over the last 12 months, there was a 27% spike in home equity lines of credit according to Experian, the financial services company, and experts predict that many more people will soon be following that lead. That being said, there are 5 factors you need to consider before taking out a home equity loan (HEL) or a home equity line of credit (HELOC) or refinancing, to determine if it is really the best financial choice you can make. Those 5 factor are below. Enjoy. Factor 1) Rates. In the last few years almost 9 million borrowers got 30 year fixed mortgage loans at the rate of 4% or lower due to the fact that mortgage rates were at near historic lows. Now however, those same rates are expected to increase. Keith Gumbinger, who represents mortgage information firm HSH.com, says that “we may be in for a more volatile period,” and he’s probably right, when you consider that the Federal Reserve is ending a number of programs that they had in place to keep rates low under their quantitative easing monetary policy. Factor 2) Costs. Simply put, if you get a home equity loan or HELOC, the price that you’ll pay up front is going to be cheaper than if you refinance. That’s because when you refinance most lenders will force you to go through the entire underwriting process and, when you do, they hit you with all sorts of fees at the same time. Those include attorney review fees and inspection fees for example, along with having to get new insurance and a new title search. Typically this can cost you over $1000 or more, depending on your mortgage of course and, in the end, the cost of refinancing could actually increase to $2000 or $3000. On a home equity loan or line of credit many lenders don’t have any upfront costs, however the higher interest rate that you pay will cover the application, appraisal and any other fees. Factor 3) Time. When you refinance a loan the clock “resets” but, when you take out a home equity loan or a HELOC, the payments you make are made on the same schedule. If, for example, you’ve paid 60 months on a 30 year loan and then you decide to refinance, it will be as if you just started at day 1 again with your 30 year term. You could roll the 30 year loan into a 15 year loan, which would reduce the number of payments but would increase the cost of each monthly payment instead. Factor 4) The reason that you need the loan or credit line. Most financial experts will tell you that the best reason to get a home equity loan is that it will positively impact your finances. If you use it to renovate your property, adding value to said property, or to go back to school and advance your degree, a home equity loan makes sense. On the other hand, if you use your home’s equity to purchase a sports car or take a luxury vacation, that money will soon be gone but, unfortunately, the debt won’t, and you’ll be paying it off for quite a few years into the future. Factor 5) Tax benefits. When you get a cash-out refinance you might not get any tax benefits but, just like your first mortgage, many home equity loans and HELOC’s allow you to deduct up to $100,0[...]