Tag: calculator

Should You Refinance Your Home?

SuperSavingMom Leave a comment

With the pandemic, interest rates have hit all-time lows. So, the big question going around lately is should you refinance your home? Personally, I’m strongly considering taking advantage of this opportunity. I purchased my home a little over a year ago (first-time home buyer) and didn’t get a terrible rate, but didn’t get an awesome rate either. So, I’ve been doing a lot of research and due diligence to determine if now is the time to refinance. Below are the 3 main questions I asked myself to make the best decisions for refinancing.

What is your goal for refinancing?

First, you should think about what is your end-goal. Are you trying to lower your mortgage payment, lower your interest rate, get cash out of your mortgage, or remove mortgage insurance? Deciding what your end-goal is for refinancing is the first and most important step to starting the process. Knowing what you are trying to accomplish will help you to determine if it’s worth it in the long run. I have decided my main goals for refinancing are to lower my interest rate, remove the mortgage insurance I had to get when initially buying my home, and ultimately lower my mortgage payment. I found this article by Investopedia very helpful in determining the pros and cons of refinancing.

If you’re looking to take cash-out, check out this calculator to help determine if it’s worth it in the long-run.

Should you buy points?

Do not buy points or roll them up into your mortgage. Points may seem attractive to get a lower rate, but ultimately raise your mortgage balance and interest you’ll pay over time. If you are planning on staying in your home for a long time then buying points for a lower interest rate might be a good move, but if you plan on selling in the next 1-3 years it might not be worth the extra $$. I would say if you are staying in your home for a long time and you can pay for the points cash versus rolling them up into your mortgage then it might be worth it in the long run on interest. You can determine if buying points is the right move for you by using this calculator. As my mother (who is a Realtor Broker and Insurance Agent) always says, “Never add to your mortgage balance!”

Should you roll-up closing costs?

This question is a tough one, as I know I don’t have an extra $3-6k laying around for closing costs. However, it’s in your best interest to not roll-up closing costs into your mortgage balance even though mortgage brokers will strongly encourage you to do so. Ultimately, if you do this you will end up paying interest on those closing costs, as well as, increase your mortgage payment. It may not seem like a lot of extra money for a single month (usually less than $10 extra dollars), but over time those extra dollars add up. If you are able to save up to pay for the closing costs out of pocket, it’s the best way to go!

Good luck and get multiple offers. I was able to get my interest rate down by 2.5% without buying points, removed my mortgage insurance, and my closing costs ended up being only $3000! I’m very happy with the results of my refinance.

 

Sources Used:

https://www.knowyouroptions.com/refinance-overview?_ga=2.124189642.1796332860.1614652949-665058774.1613152446

https://www.mortgagecalculators.info/calc-cash-out-refi.php

https://www.mortgagecalculators.info/calc-recoup.php

https://www.mortgagecalculators.info/calc-discount.php

https://www.investopedia.com/mortgage/refinance/when-and-when-not-to-refinance-mortgage/

Photo Credits:

https://unsplash.com/photos/1ddol8rgUH8?utm_source=unsplash&utm_medium=referral&utm_content=creditShareLink

https://unsplash.com/photos/uJ7NOEbTd80?utm_source=unsplash&utm_medium=referral&utm_content=creditShareLink

https://unsplash.com/photos/NpTbVOkkom8?utm_source=unsplash&utm_medium=referral&utm_content=creditShareLink

How to Save Money During the COVID19 Pandemic!

SuperSavingMom Leave a comment

With businesses closing and people out of work, now is the most important time to save money and make the most out of your limited income or savings.  Whether you were one of the lucky ones still receiving your paycheck while on stay-at-home orders, filing for unemployment, or completely left without work we all need to think about how to save money.  There are many ways to cut your expenses, make your money go further, and even save more money for future expenses.  Here are just 4 ways you can stretch your dollars further while on lockdown.

1. Buy generic products. 

You may think that brand names are better but that is pretty much always not the case.  Most generic products have the exact same ingredients as the more pricey brand name product.  You can save quite a bit by selecting your local store brand versus the brand you saw on TV.  You can find out exactly how much you can save by switching to generic with this handy calculator I found online: https://calculator.me/savings/brand.php

This calculator will show you how much money you’ll save over the course of your lifetime when permanently switching from a high priced brand name product to its functional, less expensive equivalent (generic or store-brand). Plus, it will also show you how much interest you could earn if you were to invest all or part of those savings as you realized them. As you’re about to see, “a penny saved” can REALLY ADD UP!

2. Use coupons and cashback apps.

It may seem like a lot of work to gather coupons prior to going to the store, but it’s actually not as difficult as it may seem.  There are a lot of new apps available that make it fast and easy to get cashback and save some extra $$ on your everyday purchases online and instore.

Prior to going to the store, make a list of the items you need then use a coupon matchup site to find if there are available coupons for that product.  Some coupons may be printable online or available digitally.

3. Stop buying unnecessary items.

I know, I know…I’m addicted to shopping as well!  It’s hard to pass up that item in the store that looks cute or is on sale even though you really don’t need it.  In times like these, however, now more than ever we need to stick to the essentials.  If you could add up all the little purchases you make every year, you’d be surprised at how much money you could actually be saving.  You can find out exactly how much with this handy calculator: https://calculator.me/savings/periodic-opportunity-cost.php

4. Sell items you no longer need.

Like the saying goes, “One man’s trash is another man’s treasure.” Did you know that you could potentially earn a full-time income by selling your gently used goods or new unwanted items on resell apps?!?  And most make it super easy to ship directly from home without even paying for postage or having to go to the post office.  It’s simple, list your item on one of the sites listed here and then request a free USPS pick-up at your house! BAM! More money in your pocket.

Piggy Bank Photo by Fabian Blank on Unsplash