Be Cautious When Using Your Nest Egg As An ATM

Written by James Dimmitt

About five years ago I moved fromrepparttar ranks of being a renter to that of being a homeowner. Now, not a week goes by that I don’t receive some type of offer throughrepparttar 139775 mail encouraging me to refinance my mortgage, open a home equity line of credit (HELOC), or apply for a home equity loan.

Payoff High Interest Credit Card Debt! Lower Your Monthly Payments! Buy A New Car! Refinance And Get Money Now! screamrepparttar 139776 slogans splashed acrossrepparttar 139777 envelopes.

The promotional letters inside point out how easy it will be for me to “getrepparttar 139778 extra cash you need NOW!” They promise “no out of pocket costs” with a newly refinanced 30-year loan.

Could I use some extra cash NOW? You bet I could! Who needs high interest credit card debt? Not me, no way, no how! Buy a new car? Hmmm, I like that new Pontiac G6 I’ve seen on tv, maybe in a sleek titanium color with black trim?

For thousands of U.S. households “Home Sweet Home” is rapidly being replaced with a new sentiment - “Home Sweet ATM.” According torepparttar 139779 latest Federal Reserve study, 45% of homeowners who have refinanced their mortgages pulled cash out and 74% wound up lengthening their mortgage by about six years. Only 17% shortened their loan term opting to downsize to a 15-year mortgage.

In a period of six years, Americans have more than doubledrepparttar 139780 amount owed on home equity loans and lines of credit, nearing $766.2 billion, according torepparttar 139781 Federal Reserve.

If you’re in your 40’s and you refinance on a new 30-yr. loan, you’ll be in your 70’s byrepparttar 139782 time your loan ends. Even if you shave off a few years by paying down your principle, you’re still risking not owning your home “free and clear” as you approach retirement age.

Condo-Hotels – A New Second-Home Alternative To Time Shares

Written by Leon Altman

Condo-hotels have evolved as a better, more reliable second home alternative to time-shares. They are usually attractive, high-rise hotels onrepparttar ocean or in other prime locations, and range in price fromrepparttar 139774 mid $200,000s to over 1 million, depending onrepparttar 139775 size, location, and amenities.

Many ofrepparttar 139776 biggest names inrepparttar 139777 hotel industry have condo-hotel buildings, including Hilton, Four Seasons, Clarion, and Ritz-Carlton. Donald Trump has numerous condo- hotel facilities acrossrepparttar 139778 country, including a building in Fort Lauderdale and another in Sunny Isles, Florida.

In general, condo-hotel properties have been highly successful with all or nearly all units selling out within months ofrepparttar 139779 first offering. For example,repparttar 139780 Ritz-Carlton Key Biscayne is a beachfront property with 188 condo-hotel units, all of which sold out a year beforerepparttar 139781 building was even finished. Needless to say,repparttar 139782 values ofrepparttar 139783 condo-hotels in this building have gone up significantly.

There are several reasons forrepparttar 139784 popularity of condo-hotels. When you purchase a property, you purchase a condo unit inrepparttar 139785 hotel. Unlike a time share, you have access torepparttar 139786 property whenever you want, and it is put into a rental pool when you are not in residence. Although developers can’t guaranteerepparttar 139787 properties will rent, management by a well-known hospitality group will typically result in several weeks of rental income. This is one ofrepparttar 139788 biggest appeals of condo-hotels becauserepparttar 139789 rental income can offset some ofrepparttar 139790 costs of owning a vacation property.

In addition,repparttar 139791 management company takes care of rentingrepparttar 139792 unit, using their connections and expertise. You don’t have to worry about any of these details. Most rental agreements splitrepparttar 139793 income 50/50 betweenrepparttar 139794 management company andrepparttar 139795 owner. However, some properties offer more favorable arrangements, and this is another aspect to consider when deciding which property to purchase.

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