Money Sense Tips

Many banks and financial advisors are trumpeting the benefits of refinancing your mortgage at a time when interest rates are fairly low. But there are some things to keep in mind which will make your pursuit of a better mortgage go smoother.

* Look at your current situation - Ask yourself why you want to refinance your mortgage. Is it because everyone says you should, or is it because you need to do so to drop your mortgage payments? Is your credit as good as or better than it was when you took out the first mortgage? A worse credit score could actually raise your interest rate. Is your house worth more than you owe? If so, then you may not be able to find a lender willing to take on that risk.

* Try your current mortgage holder first – If you have been a good customer, your current mortgage holder could be your best bet for obtaining a refinance. They may make you a better offer just to keep you as a customer. There also may be some advantages such as a reduction of fees.

* Investigate the interest rates – Shop around and find out what the best interest rate is that you can get with your current credit and income. Your rate may not be the one advertised by the lender and don’t forget the PMI, points, and other factors. It makes no sense to refinance your mortgage if you are going to end up paying more in the long run.

When you add up all the factors, if your new interest rate will be less than half a percent lower than your current one, then you are better off staying with what you have.


* Pay down your mortgage – If you owe more than your home is worth, you will probably not be able to refinance in a tight mortgage market. If possible, pay down your mortgage by several thousand dollars over the next few months before attempting to refinance. Your chances of refinancing, and of reducing or eliminating PMI, should be better afterwards.

* Wait it out - Even though everyone is touting the benefits of refinancing, you might find it’s not worthwhile to you. If you plan to sell in a year or so or if you can’t get a better deal, then just wait. Selling in a few years could net you more profit if you continue making your normal payments now. If you aren’t selling but have paid down more of your mortgage and improved your credit rating, you could get a lower interest rate even if overall rates have gone up.

Refinancing your mortgage can be frustrating, but keeping these tips in mind will help to smooth the process.

As you know that Labor Day is just about here, which means summer is almost over and autumn is on its way. This is the last long weekend of the summer season. So that means it’s the perfect time for you to plan a getaway. If you have left planning your Labor Day getaway until the last minute, don’t worry. There are still plenty of quick trips you can plan to celebrate the end of one season and the start of the other. They can also be very affordable; you just need to know where to look to find them.

Here are some ideas for finding last-minute Labor Day getaways for less.

* Check out expedia.com. Expedia.com lists last-minute deals and offers for travelers looking for a quick getaway. When you find a trip that appeals to you and is in your budget, be sure to book it right away. Their great deals are often scooped up almost as quickly as they are posted.

* Tell your friends. Spread the word that you’re looking for a last-minute Labor Day getaway deal. They might know someone else who isn’t going to be able to make theirs, and connect the two of you. They also may have heard of other getaways you haven’t.

* Check for seat sales. Airlines often have last-minute deals for travelers on some of their flights. If you’re flexible as to where you travel to, you may be able to fly there at a much cheaper rate than normal. You may not be able to travel on the exact date or at the exact time you want to, but if you can pick up a seat sale, you can travel for a lot less than you normally would.

Call your local airlines to find out if they have any sales and what their destinations are.  Your savings on the flight could mean you have more money to spend on fun once you get there.

* Read the newspaper ads. If your local newspaper has a travel section, start scanning it for ads for cheap travel packages. As Labor Day approaches, you might start seeing some of these. When you find one you like, be sure to book it right away as they are usually booked quickly by other savvy frugal travelers.

* Call your favorite hotel chain. They might have a sale on room bookings. Call and see if they have any special sales on for Labor Day. Again, you might not be able to be picky about where you go, but the savings could make it all worthwhile.

* Search on the internet. The internet is always a great source of last-minute information. Search for cheap trips to your destination and see what comes up. Remember to research any opportunity thoroughly before sending any money.

The Labor Day weekend is summer’s last hurrah! Make the most of it by booking a last-minute getaway without breaking your budget.