Save Money-2015 Home Resolutions

There is never a better time that the present to save money!!
Yet, saving money "smart" is most important.

Below, is an article received from Al Clark.  It is dead on helping you save money in 2015.

Yet, you must be smart about it.  For example, though interest rates are going to rise, not every home owner is a great candidate for refinancing the house.  For example, if you bought in 2005 and have a 5% mortgage, you would be not smart to pay closing costs to lower the rate to 4 or 4.5%.   The payback time will be very long.  If an individual has a 7% mortgage, that person should act immediately.

You will see the same true on each Home Resolution.  All are excellent ideas but you must evaluate for your own situation or, as in the case of insurance, be sure you are getting at least the same coverage(if not better) for a better price.

I sincerly hope you can save enough that a vacation or a spur to your savings can occur!!!

4 New Year’s 2015 Home Resolutions That Can Save You Big Money

Home Resolutions

If your New Year’s resolutions include saving money, we've got four great ways for you to achieve your goals:

Refinance

If you haven’t yet refinanced your mortgage or home equity loan to take advantage of today’s low interest rates, there’s still time to lock in a great deal. Jay Brinkmann, chief economist for the Mortgage Bankers Association, expects mortgage rates to rise to 4.8 percent in 2015, and to 5.4 percent by the end of 2016. 

If your current mortgages exceed your home’s value, you may still be able to refinance using one of the federal government’s Home Affordable Refinance Program.

Change Your Furnace Filters

New Year’s resolutions don’t get much easier than vowing to change your HVAC filter once a month in 2015 to increase your furnace’s life span. 

To make this task easy, buy 12 filters and store them in the furnace room so they’re at hand when you need them. Put a reminder on your calendar, or tie this chore to another monthly chore, like paying your household bills, so you remember to do it each month. 

Seal Those Home Air Leaks 

Sealing the air leaks in your home is one of the most cost-effective ways to cut your utility bills. Check to make sure your windows are caulked around the outside of the trim on the inside, and outside, of your home. Use foam to fill large gaps where the plumbing, electric or cable comes in the house.

Shop Your Insurance Policies

Yes, it’s a bother to shop for insurance, but if you haven’t checked what’s out there lately, you may be overpaying. The easiest way to get this chore done is to delegate. Copy the declarations pages from your current home, auto, life and umbrella policies, and ask an independent insurance agent to look for a better overall deal for you.

You can also visit your current agent, or call your insurance company and ask for an annual review to make sure you've got the right coverage and are getting all the discounts for which you qualify.

If you need a referral to a good insurance agent, mortgage loan officer or home handyperson, please contact me.

Refinance NOW

Note the picture???

Another heads up on the rising interest rates.  This particular article addressed to home owners looking to refinance their loans.   

Many buyers wishing to buy and home owners wishing to stay and refinance have sat on the sidelines as rates nudged upward.   These buyers and home owners have hoped, maybe even prayed, that the rates would be coming down again.

Yet all signs are the rates will go up.  Some of the signs are:

       Strengthening Economy

       Strengthening Stock Market

       Increasing Demand for Credit

       Increase Pressure for Fed to stop buying mortgage bonds

If you are wise and are a member of these two groups, hears another nail in the coffin of procrastination.

REFINANCE RATES WILL RISE IN 2014

Refi Costs Could Rise Next Year Interest rates and other home loan costs could rise in the year ahead, making it more expensive to refinance your mortgage or purchase a new home in 2014, mortgage market experts say. Mortgage Bankers Association Chief Economist Jay Brinkmann predicts interest rates will rise above 5 percent in 2014 and to 5.5 percent in 2015. The monthly payment on a 30-year, $100,000 mortgage is: $477.42 at 4 percent $536.82 at 5 percent $567.79 at 5.5 percent If rates do rise, homeowners looking to pull cash from their homes may decide it's cheaper to use a home equity loan or line of credit rather thanrefinancing their whole mortgage, Brinkmann said. Loan Fees Could Go Up Meanwhile, you could also be paying more for your mortgage next year because mortgage market giants Fannie Mae and Freddie Mac are looking to raise their fees. Fannie Mae and Freddie Mac loans usually have lower interest rates because the government guarantees the loans. But lenders pay a fee for that guarantee and if Fannie Mae and Freddie Mac raise lender fees, lenders could pass those increases along to homeowners courtesy of Albert Clark

Mortgage Rate Gamble

Is History About to Repeat Itself???

   One of the greatest gambles today is in Last Vegas or playing the lottery....

   The greatest gamble is waiting out
               lower 
                          Mortgage Rates

 Rates have been in 5% range or below since
               DECEMBER 2008 
       And we were teased when rates dipped below
                  4% for a few moments in the late 2010.

Yet the party may be over!!!

    Rates have ticked up to 4.25-4.5% range in the past couple of weeks with many mortgage watchers seeing the market lean toward higher rates.

   Thinking you should ignore this sentiment as it
is identical to that heard in late 2007 and 2008 when rates were in the 6 % range for the 1st time 
in a couple of years???  Remember what happened in 2008 and since....want to go through that again???

      The basis for the belief that rates will move higher is simple....INFLATION!! 

    Been awhile since we heard that word.  But with
the large National Debt, new "insertion of capital"(i.e. printing more money) by the Fed, any kind of economic growth, INFLATION could be a real possibility.  A bit of INFLATION is good; lots of INFLATION could derail an economy.

With INFLATION comes higher cost of money....higher interest rates.


If you are locked into a low 4-5% mortgage, great!!!  You are protected.

If you and your family really needs a larger, smaller or just a different home, you are gambling if you think rates will go down!! 


Take the sure bet!!! Refinance or buy now!!!


Think differently...express yourself!!!  Love to hear your point of view...we can talk about it!