If you get the big stuff right, you’ll be fine. But you can do even better if you get the details right too. For instance, when you’re considering a new mortgage, ask if the interest is compounded monthly or semi-annually. The less frequently the interest is compounded the better – semi-annual compounding could save you hundreds of dollars. Also, ask how often the rate changes. Most variable mortgages have rates that fluctuate monthly. However, there are several that only change every three months. This offers you more protection when rates are rising.
Finally, consider the prepayment options. The last thing on your mind when you take out a mortgage may be whether the bank will let you pay more than the minimum, but this is important. Four years from now, your salary might be higher, and if you’re allowed to pay extra, it goes straight to the principal and can knock years off your mortgage.
Most mortgages allow you to prepay between 10% and 25% to offer customers a “No Frills” product that severely limits your ability to prepay and can even make it impossible for you to switch from one lender to another entirely until the term of the mortgage is up. “One Canadian bank is offering just such a mortgage,” says Robinson. “The rate appears attractive; however savvy customers can find equal or better rates without the handcuffs.”
Finally, if you have a prepayment option on your mortgage and you plan to refinance, make your annual prepayment – usually between 10% and 25% – before getting the penalty calculated. If you don’t have the money, your mortgage broker will often give you a one-day loan, so your penalty can be reduced. “Very few people use this key option before having their mortgage penalty calculated.” But this simple step can save you hundreds of dollars up front.”
ING Direct Online Banking ING Direct is just one of the many online banks that have popped up over the last several years. They are available to do business online, over the phone or via the mail. They have several financial products that allow...
Cashier’s Checks and Money Orders My lease is up at the end of the month, and it's time to find a new place. I've been searching for the perfect apartment, and last week, I finally submitted an application for a new place. They required two...
Mortgage Payoff - We Pulled the Trigger The mortgage is dead. We killed it. If you have been reading Mr. ToughMoneyLove for a while (thank-you BTW), you know that we have been planning on paying off one of our mortgages. (We own two homes, one of which we...
Bayonet Golf Course, Seaside, CA Bayonet Golf Course is located in Seaside, CA Phone: 831-899-7271 Website: http://www.bayonetblackhorse.com Course History: The Bayonet golf course is one of two courses at this location. The Black Horse course integrates with this one and you can choose to play...
Tech companies got a bad rap during the dot-com bubble for promising the moon before they even has a penny in earnings. Internet darlings that actually lost money on most of their sales still saw their stock prices shoot up. But today it’s easier to understand a tech company’s earnings reports and balance sheets than those from companies in other sectors. Some five years ago, new accounting rules paves the way for cleaning up the stock options fiasco. Since then, earnings reports have become more transparent, with less room for accounting shenanigans. Unlike banks, which have a zillion ways to hide bad loans, or commodity-based companies, which use complex models to estimate the value of their reserves, technology companies’ earnings are largely made up of simple, pure cash flow.
Piqqem: Crowdsourcing Stock Picks Last week, I was contacted by Piqqem. Then wanted to tell me about their service and get my thoughts. I have to admit that I didn't find the Piqqem site that interesting. I love the idea of crowdsourcing, but it...
Some Tech Bubble Stocks Finally Breaking Even after a 10 Year Wait This week, Amazon.com released a great earnings report that propelled the most well known "internet stock" to a new all time high. As a person who experienced the internet stock bubble firsthand, Amazon's stock popping 25 points in a single...
Four 401k Rollover Strategies Explained One of the most important decisions arising anytime you change jobs is what to do about your old 401k. Since the average worker will change jobs several times over their career, it is crucial to devise a viable 401k rollover...
Seemingly Harmless Activities May Harm your Credit Your credit score is a vital number that determines how businesses and financial institutions treat you. Everything we do financially has an effect on our score, for good or bad. What surprises many people is how seemingly minor or harmless...
W know that life isn’t always as simple as setting lifelong goals and then working to achieve them. Sometimes we think we want something, but when we get halfway there, we realize we don’t. Sometimes, unexpected events happen along the way that change everything. “Often, you have to get at the root cause of your behavior and address that first, before you can modify your behavior,” says Richard Petty of Ohio State University. The upshot? “You have to be adaptable to changing course.”
Being flexible is a strength when it comes to achieving your goals. We saw this in action at our makeover with Chris and Monica, both police officers living in Vancouver. When they flew to Toronto they were stressed out and emotionally fragile. The couple earned a high income – $170,000 a year – yet all their money seemed to be slipping through their fingers.
Eventually it became clear that many of their financial problems stemmed from deeper problems in their relationship. They were overjoyed at the makeover when Norbert revealed to them that their pensions were collectively worth about $1 million, and they returned to Vancouver with a renewed sense of purpose. But the cost of raising the two young children from their marriage, soon started creeping up again. Within a few months, they had accumulated another $15,000 in debt.
California Salmon Population Dropped 88% in 5 Years California Salmon are disappearing. The number of King Salmon (aka the Chinook) returning to the Sacramento watershed was at a near record low low and an 88% drop from the population 5 years ago. Calif. salmon population declines. Regulators are...
Ladder Safety and Use Guide Even people who have been in the business for many years sometimes allow their common sense to get away from them when it comes to ladder safety and proper usage of a ladder. Sometimes people become more concerned with getting...
Left Behind Games I recently read an email about how Left Behind Games[ticker LFBG.OB] was one of the next hottest gaming companies in town.The email said it qualified on Chuck Jaffe's stupid investment of the week but went on to refute that claim...
Wisconsin Protesters Far From Middle Class Sunday Paper - March 6th, 2011 The world is backwards. It should be the taxpayers striking in the streets of Wisconsin, not those under union control. But, private sector taxpayers can’t afford to take a day off, let alone a...
So, you could reduce your rate from 19% – the typical rate on a credit card – to 3%, and save thousands of dollars in interest payments. That’s what Roxanne, 51, did this past August. At the time, she had $50,000 in high-interest rate debt on her HBC credit card. Hoping to retire in four years and clean up her finances, she looked at the equity she had in her home – about $255,000 on a $430,000 condo – and renegotiated a $225,000 mortgage at a variable rate of 2.25%. She says its given her some much-needed breathing room in her monthly budget, paying $600 a month less in total debt payments than before she refinanced. “I think I’ve put the bank manager’s children through college with the money I’ve spent on interest payments over the years.” says Roxanne. “But I plan to retire at 55, sell the condo and invest in a retirement property outside of the city. This plan works well for me.”
Getting Out of Debt Quickly pt 1 You are probably familiar with this feeling: Your bills are constantly piling up, but you feel so far behind that you simply cannot bear to even open them. When you do open them, you quickly realize that there is only...
Want a Loan? Do Your Homework First! Understanding the differences between loan types is difficult enough, so researching them for comparison purposes is not always at the top of everyone's list. Before you walk into your current bank to fill out a loan application, consider all of...
Worried about retirement because you started late? We hear a lot about the importance of starting retirement savings early, but for those that are late coming to the 'retirement savings' dance, what do they need to do differently? Someone asked me that very question just yesterday. The...
5 Ways to Save Money Without Even Trying The whole process of saving money is usually associated with pinching pennies until they scream for mercy, living on food from dented cans and basically giving up everything for a future goal. While this will indeed help you put more...
Focus only on the numbers. The mechanics of figuring out how much you have to save and how you should invest will only get you halfway there. Common goals to which both you and your spouse are committed are what’s really important. The numbers are details.
Go for the quick fix. Financial planning takes time. You have to set your long-term goals first, then look at the steps you need to take to get there. If you don’t put together a complete plan, you could end up focusing on short-term goals, such as juicing your returns, that could cost you money in the long run.
Force someone to change who isn’t ready. You can’t bully a spouse into accepting a financial plan he or she isn’t ready for. Both of you have to really believe in the destination. It will take time, sacrifice and compromise – from both of you. If the goals are too ambitious for one spouse, you might have to ratchet them down to start.
ThinkStock What sets us apart Premium images. And millions of them. Choose from a comprehensive collection of select royalty-free photos, vectors and illustrations from Getty Images, iStockphoto and Jupiterimages. Serious bang for your buck Download up to 25 images a day...
Personal Retirement Plan Investment Options Good financial management consists of two different distinct facets, the first of which is learning how to make the best use out of your limited earned income in order to best meet your current expenses, and the second of which...
The Kiplinger Washington Editors Kiplinger (pronounced KIP-ling-er) is a Washington, D.C.-based publisher of business forecasts and personal finance advice, available in print, online, audio, video and software products.Maximize Your Tax Deductions. Let the tax experts at Kiplinger show you how to save as much...
Finding The Right Financial Balance If you are ready to get serious about managing your finances, it is vital to find that perfect financial balance that will help you reach your goals in less time. In many cases, simply finding that balance can make all...
Banks are private firms that start with invested capital and seek to “make money” in the same sense as do firms making neckties or bicycles. Banks do not set out to “make money” in the literal sense, but, nonetheless, they do so as an incidental by-product of their attempt to make profits for their owners.
Start Treating Your Finances Like a Bank If you want to start making money, you’ve got to stop looking at your finances like a regular person and start treating your checkbook like you work for the bank. This is the key towards successful management of your finances...
Market Trading Success Why is it that some people are successful in trading the markets? And why is it some people fail? Is it luck that determines if you are successful or not in making money from the market? Is it the system...
What Do Venture Capital Firms Know That The General Public Does Not? The answer is probably, a lot. That being said, the Wall Street Journal released the top 50 Venture-Backed Companies while you can read more about the methodology the list basically, seeks to pinpoint the 50 U.S. venture-backed companies with the...
Why John Chow is Bad for Blogging I like to keep things related to health and weight loss, but there are times when I just need to vent. So this post is one of those times. I have been intrigued with blogging since it started becoming popular...
Related Websites