DISPELLING REFINANCING MYTHS

“Refinancing” is a scary word for many people, but that shouldn’t be the case for you. For many homeowners, refinancing can not only lower your monthly payments and help with your monthly budget, but it can save you thousands of dollars in the long run.

YOU’RE NOT TOO LATE.

For years now, we’ve been hearing that interest rates will be on the rise, and although there have been some small increases, you’re still in a great position to drastically lower your interest rate. The general rule is if your mortgage interest rate is more than one percent above the current market rate, you should consider refinancing.

IT’S NOT TOO TIME CONSUMING.

Don’t brush off refinancing just because it seems like a long and daunting process. An informational call with a lender to see how rates compare will only take a few minutes. There are also some programs for streamlining the application process. And besides, isn’t the amount of money you could save worth the time and effort?

---

---

ARMS CAN BE REFINANCED, TOO.

Seeing your Adjustable Rate Mortgage (ARM) increase after the introductory period can be incredibly stressful and place a squeeze on your budget. Many people assume they’re stuck, but ARMs can be refinanced, just like fixed-rate mortgages. You can even switch to a shorter term fixed-rate mortgage, such as 15 or 23 years. The longer you’re planning to stay in the home, the more sense it makes to look into refinancing.

SHORT SALE AND FORECLOSURE: HOW ARE THEY DIFFERENT?

As unfortunate as it can be when homeowners fall behind on mortgage payments and must face the possibility of losing their homes, short sales and foreclosures provide them options for moving on financially. The terms are often used interchangeably, but they’re actually quite different, with varying timelines and financial impact on the homeowner. 

Here’s a brief overview.

A short sale comes into play when a homeowner needs to sell their home but the home is worth less than the remaining balance that they owe. The lender can allow the homeowner to sell the home for less than the amount owed, freeing the homeowner from the financial predicament.

On the buyer side, short sales typically take three to four months to complete and many of the closing and repair costs are shifted from the seller to the lender.

On the other hand, a foreclosure occurs when a homeowner can no longer make payments on their home so the bank begins the process of repossessing it. A foreclosure usually moves much faster than a short sale and is more financially damaging to the homeowner.

After foreclosure the bank can sell the home in a foreclosure auction. For buyers, foreclosures are riskier than short sales, because homes are often bought sight unseen, with no inspection or warranty.

---

MUST-HAVE TOOLS FOR HOMEOWNERS

When you own your home, things are going to break and, unless you want to spend your money on visits from a neighborhood handyman, you’re going to need to fix them yourself. Luckily, you don’t need an arsenal of tools to handle most home maintenance fixes. These tools will cover most of your basic projects and help you keep your lights on. 

1. Cordless drill. A cordless drill is a must-have for installing cabinets, drawer pulls, hinges, picture frames, shelves and hooks, and more. Whether it’s for do-it-yourself projects or repairs, you’ll use your cordless drill just about every month.
2. Drain cleaners. Shower and bathroom sink drains are susceptible to clogs because of the daily buildup of hair, whisker clippings, etc. You can use chemical clog removers like Drano, but they’re expensive and the lingering chemical scent is unpleasant. Instead, buy some plastic drain cleaners that can reach into the drain to pull out the clog of hair and gunk. You can purchase them on Amazon or at a local hardware store for a low price.
3. Shop-vac. No matter how careful you are, spills and accidents will happen and there are some tasks that just can’t be handled with paper towels or a standard vacuum, like pet messes or broken glass. Our Wet/Dry Vac is used frequently. 
4. Flashlight. You’re going to want something a little more powerful than your cellphone flashlight when you’re in the crawlspace! We have a dozen of them, I'm sure! 
5. Plunger. You should have a plunger in each bathroom, just in case. Make them available for people to use, but hidden away enough to not be a centerpiece. 
6. Hammer. How else are you going to get those pictures finally hung on those walls! 
7. Selection of screwdrivers and wrenches. Flat head, Phillips, Monkey, Adjustable, Hex Key and Allen Wrench sets are all important. Look for a good selection or a kit with multiple sizes. 
8. Tape Measure. Again, we have a bunch of them and use them all the time. How to make sure the TV is in the middle of the wall, will the sofa fit in this corner, can we get a larger dining room table? 
9. Ladders. A selection of ladders is a great idea. A small footstool to get things off the top shelf in the kitchen/pantry. How about a outdoor ladder helps you hang those holiday lights. And don't forget that smoke detector in the top corner of the hallway? You'll need a ladder to get up there to change those batteries, usually in the middle of the night when you wake up to the beeping. 
10. Extension Cords. We have outdoor cords and indoor cords. In fact, when we moved in, I already had a map for where all the furniture would go and then looked for electrical outlets where I would need them. I placed cords strategically and taped them with blue painters' tape to the wall beyond where the furniture would be. When the furniture was place, I was able to plug in that lamp without moving the bed. Planning! 
11. Level. If you really want those pictures to be level on your walls, you'll need a level! 
12. Batteries. We always have a collection of batteries in our house. We use so many AAs and AAAs I buy them in bulk and keep them with my toolbox. We will always have one for our remote controls, outdoor lanterns, and all other devices. 
13. Lightbulbs. Not really a tool, but an essential part of your toolkit. A selection of lightbulbs which will fit all of your recessed lighting, vanity lights, flood lights, outdoor lights, indoor lamps - put together a box of lightbulbs and you'll never be in the dark. 
14. Toolbox. Keep everything together in your toolbox.

---