If you’re working from home, you may be using way less data for your smartphone. So, see how much data you’re actually using, and if you can go to a lower data plan which can cost less.
Rain Barrels: The Money-Saving, Eco-Friendly DIY Project Your Garden Needs
July 28, 2020 by Leave a Comment
There’s never been a better time to stay at home and work on your summer garden. And what if we told you there was a DIY addition you could tackle right now that would save you money and make your outdoor space more eco-friendly?
It’s true—and this amazing solution is called a rain barrel. We spoke with gardening experts from all over the country to learn more about rain barrels, and why every gardening enthusiast should have one. Here’s what we found out.
What is a rain barrel?
A rain barrel is exactly what it sounds like: a large drum barrel that catches rain. That water can be reused in outdoor projects, such as irrigating the lawn or garden, washing home exteriors, and even rinsing off your car. Some people make their own, but more often they’ll just purchase a plastic container such as a garbage can and modify it.
And while catching rain may sound slow and tedious, most people don’t just put a barrel in their yard and hope for the best. Instead, they’ll position their rain barrels to catch the most water possible—say, under a roof or gutter drain.
“A rain barrel is a great solution for collecting rainwater directly from the gutters that would otherwise be wasted or lost into the ground,” says Holly Maguire of Simple Lawn Solutions.
Many gardeners prefer using rainwater to irrigate their plants.
“Some plants actually prefer rainwater [to] groundwater due to the fact that groundwater can be harder and contain more minerals,” Maguire says.
But, she warns that collected rainwater shouldn’t be used for drinking, and gardeners should be cautious when using it on edible plants and veggies.
“A drawback of the rainwater is that it flows off your roof, so it’s possible for it to pick up anything from your roof on the way down,” Maguire says.
But for all your flowers, lawn, and other outdoor water needs, rain barrels are a great solution—and they come with a few other perks as well.
Rain barrels protect the environment
These nifty barrels don’t just allow you to conserve water and reuse what might otherwise be wasted. They also help protect nearby lakes and reservoirs from contamination, since rain runoff absorbs chemicals used in gardening and then goes into the storm drains, which lead to bodies of water.
“Rain barrels have become a common sight around Lake Champlain in Vermont,” says David Parsons, president and owner of Re/Max North Professionals. “Stormwater runoff has a significant negative impact on our treasured lake and other watersheds, so catching it can help mitigate this problem.”
Rain barrels save you money
In addition to helping with water conservation and preserving natural resources, rain barrels will also save you quite a bit of money.
According to the Environmental Protection Agency, the average American family uses 320 gallons of water per day, roughly 30% of which goes toward outdoor uses. Of that, more than half is used for watering lawns and gardens. By capturing some of that unused rainwater, you can both lower your monthly bills and minimize your water consumption, so that’s a win-win.
How to build your own rain barrel
Before getting started designing your perfect rain barrel, you’ll want to check with your local municipality or HOA to make sure it’s allowed. While many places do allow rain barrels (and some even encourage it), it’s a good idea to check before committing yourself.
With that out of the way, you’ll be ready to start designing the best rain barrel for your needs.
“Any design will work,” says Seth Samuelson, co-owner of the SeCa Hose Holder.
Most rain barrel systems involve the same elements, he observes: a storage tank, a valve system (at the bottom), an overflow pipe (at the top), and some sort of hatch on top with a screened grate to filter any large particles.
The biggest differentiator will be your budget, although most barrels can be built for less than $100, and some can even be done for just $15. That being said, we like this easy and affordable midrange model from ManMade DIY.
When it comes to tips for your build, Samuelson recommends using a table or other sturdy surface below your barrel.
“My best tip is to also build a sturdy table to elevate the tank,” he says. “This is important because you’ll be able to have ample room below to access the faucet more easily.”
The bottom line
Whether you’re an avid gardener or even just a fanatic about keeping your car clean, there are plenty of ways to put your captured rainwater to good use.
“Anybody that has a garden, lawn, or uses water for cleaning and household chores can benefit from a rain barrel,” says Maguire. “Because of the potential of conservation and positive impact on the environment, it’s really a no-brainer. Everyone should have one.”
Saving on your phone bill during Covid-19
July 27, 2020 by Leave a Comment
Kim Palmer- a personal finance expert with Nerdwallet, helped us put a few ideas together. She says another big one– opt in– to auto pay. “You log into your account and you just set up your bill to just automatically pay each month. Out of your bank account. And it can save you $5 to $10 a month. A lot of people don’t realize that or don’t bother signing up,” said Palmer.
9 extreme ways to save money
July 26, 2020 by Leave a Comment
Here at Money Talks News, we spend a lot of time telling you how to save money.
We’ve explained how to save $1,000 quickly and how to save on every online purchase.
But what happens once you’ve cut the lattes and canceled the gym membership, but you’re still burning a hole in your checking account each month? At that point, it may be time to pull out the big guns — time to get extreme.
Click through the gallery above to see eight out-of-the-box ways to save big. These go beyond the frugal tips that save you pennies. Instead, they are things that may require big lifestyle changes, but that will pay off in the form of serious savings.
It’s not the usual blah, blah, blah. Click here to sign up for our free newsletter.
Money-Saving Ideas – How to Get Cheaper Car Insurance
July 26, 2020 by Leave a Comment
LOS ANGELES, CA / ACCESSWIRE / July 25, 2020 / Compare-autoinsurance.org (https://compare-autoinsurance.org/) has launched a new blog post that presents some important tips that can help drivers pay cheaper car insurance rates.
For more info and free car insurance quotes, visit https://compare-autoinsurance.org/top-tips-that-can-help-drivers-save-car-insurance-money/.
In the past years, car insurance rates have continued to rise across the country. The increased price of vehicles and the increased number of claims are just a few of the reasons for this continuous rise in insurance prices. Unfortunately, insurance rates aren’t likely to come down in price anytime soon. However, there are a few things policyholders can do to minimize the effect of the increased premiums on their wallets.
Drivers looking to save money on car insurance should consider following the next tips:
- Add multiple cars and drivers to the policy. Drivers who obtain a quote from an insurance company to insure a single car will end up getting a higher quote per vehicle than if they inquired about insuring several drivers or vehicles with that provider. In some circumstances, insurance providers are willing to give a better deal to policyholders that are bringing more business to them. Also, insurance companies can provide a discount to those policyholders that maintain other policies at them, such as homeowners insurance.
- Be a safe driver. A clean driving record with zero at-fault accidents and tickets can help drivers save money. Most providers offer a discount that can range from 10 to 25% to those policyholders that managed to stay safe on the roads for a number of years.
- Get a car that is cheap to insure. Insuring a huge SUV can be more expensive than insuring a small, but safe lower-cost commuter car. Also, some insurers will offer a discount for buying a hybrid, an alternative fuel vehicle, or a fully electric vehicle.
- Increase the deductible. The deductible is the amount of money policyholders have to pay before the insurance kicks in. Depending on the policy, deductibles typically range from $250 to $1,000. By increasing their deductibles, policyholders can pay lower premiums.
- Improve the credit score. In many states where is allowed, the insurance companies use the credit score to determine insurance premiums. Insurance providers claim that their studies show that if a driver is responsible in his personal life, then that driver is less likely to file claims.
- Install anti-theft devices. Policyholders can lower their annual premiums if they install anti-theft devices. For that to happen, policyholders will need to contact their insurance providers and ask them for what installed anti-theft devices they offer discounts. Car alarms and LoJacks are just a few of the devices that are eligible for a discount.
- Apply for usage-based insurance. Usage-based insurance policies are perfect for safe drivers who don’t use their cars that often. Typically, the insurance provider will install a telematics device in the vehicle to track how much, how well, and when the policyholder drives. Based on these factors, the policyholder might be eligible for a discount.
- Shop around. It makes sense to get quotes at least once per year from other companies, to check if lower rates are available. When getting quotes, drivers should ensure they compare the same policies and options.
For additional info, money-saving tips and free car insurance quotes, visit https://compare-autoinsurance.org/.
Compare-autoinsurance.org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc.
“The price of car insurance is likely to continue to rise in the near future. Fortunately, there are several things drivers can do to save money on their car insurance policies,” said Russell Rabichev, Marketing Director of Internet Marketing Company.
CONTACT:
Company Name: Internet Marketing Company
Person for contact: Gurgu C
Phone Number: (818) 359-3898
Email: cgurgu@internetmarketingcompany.biz
Website: https://compare-autoinsurance.org/
SOURCE: Internet Marketing Company
View source version on accesswire.com:
https://www.accesswire.com/598925/Money-Saving-Ideas–How-to-Get-Cheaper-Car-Insurance
Money-Saving Ideas – How to Get Cheaper Car Insurance – Press Release
July 25, 2020 by Leave a Comment
LOS ANGELES, CA / ACCESSWIRE / July 25, 2020 / Compare-autoinsurance.org (https://compare-autoinsurance.org/) has launched a new blog post that presents some important tips that can help drivers pay cheaper car insurance rates.
For more info and free car insurance quotes, visit https://compare-autoinsurance.org/top-tips-that-can-help-drivers-save-car-insurance-money/.
In the past years, car insurance rates have continued to rise across the country. The increased price of vehicles and the increased number of claims are just a few of the reasons for this continuous rise in insurance prices. Unfortunately, insurance rates aren’t likely to come down in price anytime soon. However, there are a few things policyholders can do to minimize the effect of the increased premiums on their wallets.
Drivers looking to save money on car insurance should consider following the next tips:
- Add multiple cars and drivers to the policy. Drivers who obtain a quote from an insurance company to insure a single car will end up getting a higher quote per vehicle than if they inquired about insuring several drivers or vehicles with that provider. In some circumstances, insurance providers are willing to give a better deal to policyholders that are bringing more business to them. Also, insurance companies can provide a discount to those policyholders that maintain other policies at them, such as homeowners insurance.
- Be a safe driver. A clean driving record with zero at-fault accidents and tickets can help drivers save money. Most providers offer a discount that can range from 10 to 25% to those policyholders that managed to stay safe on the roads for a number of years.
- Get a car that is cheap to insure. Insuring a huge SUV can be more expensive than insuring a small, but safe lower-cost commuter car. Also, some insurers will offer a discount for buying a hybrid, an alternative fuel vehicle, or a fully electric vehicle.
- Increase the deductible. The deductible is the amount of money policyholders have to pay before the insurance kicks in. Depending on the policy, deductibles typically range from $250 to $1,000. By increasing their deductibles, policyholders can pay lower premiums.
- Improve the credit score. In many states where is allowed, the insurance companies use the credit score to determine insurance premiums. Insurance providers claim that their studies show that if a driver is responsible in his personal life, then that driver is less likely to file claims.
- Install anti-theft devices. Policyholders can lower their annual premiums if they install anti-theft devices. For that to happen, policyholders will need to contact their insurance providers and ask them for what installed anti-theft devices they offer discounts. Car alarms and LoJacks are just a few of the devices that are eligible for a discount.
- Apply for usage-based insurance. Usage-based insurance policies are perfect for safe drivers who don’t use their cars that often. Typically, the insurance provider will install a telematics device in the vehicle to track how much, how well, and when the policyholder drives. Based on these factors, the policyholder might be eligible for a discount.
- Shop around. It makes sense to get quotes at least once per year from other companies, to check if lower rates are available. When getting quotes, drivers should ensure they compare the same policies and options.
For additional info, money-saving tips and free car insurance quotes, visit https://compare-autoinsurance.org/.
Compare-autoinsurance.org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc.
“The price of car insurance is likely to continue to rise in the near future. Fortunately, there are several things drivers can do to save money on their car insurance policies,” said Russell Rabichev, Marketing Director of Internet Marketing Company.
CONTACT:
Company Name: Internet Marketing Company
Person for contact: Gurgu C
Phone Number: (818) 359-3898
Email: cgurgu@internetmarketingcompany.biz
Website: https://compare-autoinsurance.org/
SOURCE: Internet Marketing Company
View source version on accesswire.com:
https://www.accesswire.com/598925/Money-Saving-Ideas–How-to-Get-Cheaper-Car-Insurance
Smart About Money: What Now?
July 25, 2020 by Leave a Comment
By Nick Maffeo
Though the coronavirus is very much still with us, as the months go by and many things are starting to feel more normal again, some people are looking around and asking, “What now?”
Nick Maffeo
While no one saw the coronavirus coming just the way it did, looking for ways it might be possible to benefit in the future because of the coronavirus is absolutely a good response.
So, what now?
For one, in the past few months many people have noticed that an obvious “side effect” of the pandemic was that they spent a lot less on entertainment, restaurant meals and travel.
Some are realizing that this new habit the virus forced on them is actually providing an unexpected insight into a way they might be able to grow their savings fairly easily — specifically, by spending a little less on leisure activities. Or, for some, a lot less.
Yes, everyone wants the economy to recover and everyone wants to support industries that have been so badly hit. Plus, people want to get out again.
When it comes to your personal economy, using the virus experience to spend less now to build your savings guarantees you will have money to spend to help the economy today … and in the future.
Edward Jones Managing Partner Penny Pennington recently told The Wall Street Journal her father always hounded her to save, and now she is so glad she listened to him. “No one ever regrets saving for their future,” she said. That’s true!
On another topic, it seems that a lot of people who are receiving unemployment benefits are not having taxes withheld. Withholding is not mandatory and many are sure Congress will ultimately decide to forgive those taxes.
That could happen — or not. If the economy is bad enough, taxes could go up.
The safest plan is to have the withholding taken out now so that the money will be there for you next year if the taxes do come due. If they are forgiven and you get a refund, that will be a pleasant development. But if the taxes on unemployment benefits are not forgiven, you could end up owing a considerable amount with no withholding to cover all or part of it. This is your chance to avoid an unhappy surprise in April 2021.
Lastly, people have had a lot of time to reflect on what they’re doing and not doing with their lives. In that way (if nothing else), the coronavirus situation has a real opportunity to be a blessing in disguise.
Many will be so happy to go back to their old lives. And that’s fine. “Back to how life used to be” is good. Yes, there will be some changes to adapt to. But there are always changes in life and plenty of times the new ways actually turn out to be okay or even better than the old ways after a while.
Others have seen they were tired of how some parts of their lives were and they’ll go in directions they may never have considered or allowed themselves otherwise.
It will be ironic — but welcome — if having less control over their lives for a period of time gives people a chance to appreciate the control they do have along with a determination to make the best of that chance, whether it’s doing more or doing less, doing everything the same or many things differently.
Building your savings, preparing as best you can for the unknown, enjoying your life and your loved ones right now — as we move forward, those are all excellent possible ideas to consider if you find yourself wondering, “What now?”
Nick Maffeo is the President CEO of Canton Co-operative Bank in Canton. Have a question? Email to submissions@thecantoncitizen.com.
Short URL: https://www.thecantoncitizen.com/?p=68622
Posted by Nick Maffeo
on Jul 24 2020. Filed under Featured Content, Opinion, Smart About Money.
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How To Spend More Money In Retirement – Safely
July 25, 2020 by Leave a Comment
This strategy offers a safe balance between too much frugality and too much spending in retirement Getty Images/iStockphoto
Many retirees are spending their retirement savings quite frugally, according to a handful of recent reports and studies. These studies—from the Employee Benefits Research Institute, United Income, and the Boston College Center for Retirement Research—reveal that as a result, retirees might end up passing away with a lot of money in the bank, money they might have been able to enjoy while they were alive.
There are a handful of potential reasons for this phenomenon, including the possibility that retirees are afraid of outliving their money, that they’re saving their money for that proverbial “rainy day,” or that they haven’t yet shifted their mindset from accumulating savings for retirement to spending money in retirement.
Consider a strategy to help you spend more in retirement
While I don’t intend to chastise pre-retirees and retirees for being frugal, I do want them to know there’s a straightforward strategy they can use to safely spend more money in retirement. This strategy is featured in my latest book, Don’t Go Broke in Retirement: A Simple Plan to Build Lifetime Retirement Income.
Appropriately, the strategy is called the Spend Safely in Retirement Strategy, and it’s based on robust research that I led at the Stanford Center on Longevity, in collaboration with the Society of Actuaries. We systematically analyzed and compared 292 retirement income strategies, using sophisticated analytical techniques. Two key metrics we used were the amount of lifetime retirement income you can expect as well as the amount of savings you can access at any point in time. Using these metrics, the Spend Safely Strategy (for short) compared favorably to the other 291 strategies we analyzed, many of which are much more complex.
The Spend Safely Strategy is designed to withstand stock market crashes, and indeed, the recent financial turmoil successfully stress-tested the strategy, due to the high level of risk-protected income.
Adopt a three-step strategy
The basic idea behind the strategy is to develop sources of retirement income that are designed to last the rest of your life, no matter how long you live. Then limit your monthly and annual spending to the amounts of retirement income you expect to receive.
To generate sources of lifetime retirement income, follow these three steps:
- Optimize your Social Security benefits with a careful strategy to delay your benefits as long as possible, but no later than age 70. If you retire before age 70, enable the delay by either working part time or implementing a Social Security bridge payment.
- Invest your retirement savings in a low-cost balanced, target date, or stock index fund—these funds are commonly found in 401(k) plans or IRA platforms. Use the IRS required minimum distribution (RMD) rates to determine the amounts that you can safely withdraw each year to help pay for living expenses. Use the same RMD methodology to calculate your annual withdrawal if you retire before the age the RMD applies to you (age 70 if you were born on or before June 30, 1949, age 72 for all others).
- Set aside some money for an emergency fund, so you don’t need to withdraw from the savings that are generating your retirement income.
Explore refinements and adjustments to customize the strategy
The Spend Safely Strategy isn’t rigid—it includes adjustments and refinements to customize the strategy to your own goals and circumstances. As such, it’s also a decision-making framework. For example, you can use adjustments to safely achieve these goals:
- Generate retirement income before the optimal age to start Social Security benefits.
- Start retirement income before the RMD rules apply to you.
- Develop additional sources of guaranteed retirement income, if that would make you feel safer.
- Spend more money on travel in your early years of retirement, while you are still active and vital.
- Set aside some savings to address potential medical and long-term care expenses late in life.
- Reflect if you’re in poor health.
- Help family members or give to charity.
You can implement the Spend Safely Strategy using virtually any IRA or 401(k) plan, with or without the help of a financial adviser. If you feel more confident working with an adviser, understanding the strategy can help you have an informed discussion with that adviser.
When it comes to their money, some people express a desire to spend all of it while they’re alive and die with nothing in the bank. The trouble is, if you aren’t prescient about your date of death, you might spend too much money and end up with nothing in the bank years before you pass away. The Spend Safely Strategy offers a realistic balance between frugality on the one hand, and spending too much money and outliving your savings on the other.
Don’t Go Broke in Retirement contains the information you need to implement the strategy and the refinements discussed here, as well as helpful examples to assist with your retirement planning. It also identifies useful tools and resources that can help with your planning, and it includes a handy checklist.
It may take some time and effort on your part to build your lifetime retirement income portfolio, but it’s a very good use of your time, considering that you should be planning to enjoy a retirement that lasts for 25 years or more.
Grieving family told prepaid funeral won’t cover everything
July 24, 2020 by Leave a Comment
If you have relatives who are getting older, they may be considering pre-paying for their funeral to make things easier for their survivors when they pass.
Funeral directors will tell you prepaying for your funeral is a great way to save your loved ones stress and hassle. But one family wants to know why they still owe money after prepaying.
Tonkia Bridges thought everything was taken care of, when 98-year-old Willa Goodwin, the woman she took care of and loved, passed away.
“She paid for a pre-need service in full,” Bridges said. “And on the receipt it says, ‘Paid in full, thank you.'”
Goodwin bought a “pre-need” funeral policy that was supposed to cover all expenses. When Bridges and a surviving cousin went to the funeral home, “They told us she had paid for everything but the opening and closing of her grave.”
That was going to cost them another $500, which neither Bridges or her cousin had during the pandemic.
Why the extra fee?
It turns out the original funeral home which sold the policy more than a decade ago had shut down, and not all the money could be found by the funeral home that handled the funeral.
Bridges thought that would not be an issue. “We were advised by hospice that the funeral homes transfer those services to another funeral home,” she said.
WCPO checked with McCall’s, the funeral home handling the services.
Owner Ed McCall did not want to talk on-camera, due to a hoarse voice. He did explain though that he was never part of the original prepaid policy, was not on the contract and was trying to handle everything as a service to the family.
McCall said he went beyond what was left in Goodwin’s policy, and ended up paying an additional $800 of his own money. He says he cannot spend any more on grave opening fees at this point.
How to protect yourself
Bridges wondered how many other families think they are fully covered when they aren’t.
“It made me feel maybe this has happened to other people, and they may not even know it,” Bridges said.
Kiplinger Personal Finance says prepaid funerals can be a smart idea. But it says:
- Make sure the money goes to a trust or insurance company, not a specific funeral home that could go out of business.
- Get a plan that keeps up with inflation.
- Make sure it covers an upgraded casket, not a bare bones model.
- Do a “check in” every five years or sooner if the person is older.
Finally, it is a good idea to make sure everything is covered, including hearse fees and cemetery fees, which Bridges and the surviving cousin may now have to pay.
That way you don’t waste your money.
__________________________
Don’t Waste Your Money” is a registered trademark of Scripps Media, Inc. (“Scripps”).
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For more consumer news and money saving advice, go to www.dontwasteyourmoney.com
Shopportunist: Money-saving tips for potential, current homeowners
July 23, 2020 by Leave a Comment
Potential and present homeowners looking to save money on a sanctuary at the outset or along the way have a lot of options, though.
Purchasing a home without forking over a fortune – even in the midst of a pandemic – is possible. For starters, mortgage interest rates are at historic lows, hovering at or below 3%, which will save any homeowner heaps of money over the life of the loan.
There are also several low-down-payment mortgage programs homeowners can use to keep more money in their pocket, says Matt Frankel, certified financial planner and mortgage analyst at The Ascent, a subsidiary of The Motley Fool.
“For example, as of now, the Fannie Mae HomeReady mortgage only requires 3% down, which can come from a gift or grant. And you can always ask the seller to pay for closing costs, which can really help minimize your out-of-pocket costs,” says Frankel.
The federal Department of Housing and Urban Development offers several options to would-be buyers. The “Dollar Homes” program lets low- to moderate income families buy HUD-owned homes for just a dollar.
“Now, these homes will need considerable work, but if you’re able to afford (or finance) the rehab work, this can be a great way to get a fantastic deal on a home of your own,” says Frankel.
Your job could help you qualify for cash-saving programs as well.
“If you’re a teacher, EMT, firefighter, or police officer, the Department of Housing and Urban Development (HUD) has a program called Good Neighbor Next Door that can get you a 50% discount on a home (that’s not a typo) in a designated ‘revitalization’ area if you commit to live in the home for at least three years,” says Frankel.
There are also several local, state and federal homeowner assistance programs that can help provide funds for a down payment, provide homeowner education, and can help homeowners obtain financing, says Frankel.
The city of Albany offers the Home Acquisition Program (HAP), which provides financial assistance to low -ncome households. The Troy Rehabilitation and Improvement Program’s HomeOwnership Center administers funds for the city of Troy’s Homebuyer Incentive Program and Rensselaer County’s Homebuyer Program in the form of down payment and/or closing cost assistance. The town of Colonie’s First Time Homebuyer program provides a subsidy to participants to purchase homes in the town or the village of Colonie or the village of Menands. Funds for this program – up to $14,000 – are provided by the U.S. Department of Housing and Urban Development (HUD) and designed for qualified households with incomes below 80% of the area median income who are capable of qualifying for and repaying a mortgage.
If you’re already rooted in your refuge but looking for ways to save more money, there are opportunities to keep more cash in your pocket.
You could refinance your mortgage. It’s all the rage these days as requests for refinances making up 64% of total mortgage applications the first full week of July, according to the Mortgage Banker’s Association.
Refinancing is a wise choice if interest rates are at least 1 percentage point lower than the rate you’re already paying at the moment. A 1-percentage point reduction could save you thousands of dollars in the long run, reduce your monthly mortgage payment and possibly your repayment term.
If you have significant equity in your home, you can tap into that equity by refinancing your loan and borrowing money to pay for home improvements or big-ticket items. A cash-out refinance replaces your current mortgage with a larger one, but in exchange you’ll receive cash to use as you see fit.
In order to qualify to refinance your mortgage, your personal credit and income qualifications must be sufficient and your home’s value and the amount you want to borrow must make good financial sense to the lender. In most (but not all) cases, lenders want to see that the new loan will produce a maximum loan-to-value, or LTV, ratio of 80%, says Frankel.
Refinancing a mortgage is not free. Refinancing loans typically involve closing expenses, such as underwriting and origination fees, just as there would be with a purchase mortgage. Be sure that you’re going to live in the home long enough for the cost savings to justify any upfront fees, says Frankel.
If you have a low interest rate, don’t need a cash infusion and can comfortably handle your payments, refinancing might not make good financial sense.
There are a couple of other less risky ways to reduce your housing expenses, says Frankel. For starters, consider a simple energy audit.
“Think about improving the efficiency of your home,” Frankel says. “Smart thermostats are one way — these aren’t too expensive, and can help save hundreds of dollars on your utility bills over time. Upgrading to a tankless water heater is another way, which can be a bit expensive but the long-term savings can add up.”
Also, revisit your homeowners insurance costs periodically.
“Shop around for insurance, especially if you’ve been in your home for several years,” he suggests. “Every few years, it can be a smart idea to obtain a couple of quotes from reputable insurers to make sure you aren’t paying too much — you might be surprised how much you can find.”
