Retirement is something you try to prepare for as best you can, but with so much uncertainty in the market and your personal future in general, planning can be tricky. How do you know when it’s time? We’ll find out.
Purchasing a home is a life-changing event. Suddenly you’re responsible for a number of things you may not have been responsible for in the past. However, you’re also eligible for a number of tax deductions, too. Take a look at our list to make sure you’re taking advantage of all that you can!
Why is my little house such a heat miser? Is it because it’s actually a sauna? Is it because I have too much insulation? Turns out, the lack of proper ventilation in my attic is to blame. Come with me on a journey to learn more about why attic ventilation, although controversial, is important.
Q: My wife and I are retiring in three years. We plan to move west to be closer to our kids and grandchildren after we retire. We owe $220,000 on our mortgage and we’re paying a 6.75% mortgage rate. We missed the chance to refinance when rate were low a few months ago and, even at a lower rate, we aren’t sure if paying a lot of closing costs on a loan we'll only be on for three years makes sense. Should we just sit tight or are there other options? A: You can take advantage of a 1st Lien Home Equity Loan. The rate is fantastic and the closing costs are very low. Let’s do some math. Rate – 3.75% Closing Costs – $400 Current rate (6.75%) – New rate (3.75%) = $1,427 payment vs. $687 payment = $740 monthly payment savings. $740 × 36 months is $26,640. Because the Home Equity loan is interest only, you won?t be paying down principal, so you?d need to add back the $7,500 you would have paid your current loan down. You can save a net $19,100. The loan is tied to the Prime Rate. It will adjust. However, all forecasts point to the Prime Rate remaining low for the foreseeable future. Even if Prime ticks up a full percentage point, or even two, over the three year period, you will still have a lower interest rate than you have now!