What the Bank Wonít Tell You About Mortgage Refinancing

Written by Paul Ashter


So you have a mortgage, and you need to refinance to get your interest rates low. Most people simply walk into their bank, ask to refinance, and then end up paying more money long term than they would have otherwise. Some banks would like everyone who is refinancing to remain ignorant, but I am here to tell you what banks donít want you to know. Refinancing can be very beneficial, but one has to understandrepparttar terms ofrepparttar 148868 deal, and be very careful when choosing a bank.

One mistake many people make is going torepparttar 148869 bank and deciding to refinance before actually looking atrepparttar 148870 home loan. Some think that their interest rates are too high, and they have too many debts, so refinancing isrepparttar 148871 only option. Be sure to look atrepparttar 148872 numbers, and then go over those exact same numbers with your financial advisor. After discussing it, you can then decide to refinance. It is always a good idea, even after you go overrepparttar 148873 numbers, to ask your bank, ďDo I need to refinance?Ē They cannot lie to you, but they can withhold information. Banks do not want you to understand that fact. Asking questions is one ofrepparttar 148874 best things you can do. Banks love to let customers make bad decisions. As a financial advisor, banks are obligated to tell yourepparttar 148875 best possible course of action, but not required. Unfortunately, some banks simply want profit, and sorepparttar 148876 customerís financial situation is not ofrepparttar 148877 utmost importance.

It is up to you then to be informed about all aspects of your financial situation before you walk intorepparttar 148878 bank. It is advisable to know just as much, if not more thanrepparttar 148879 bank does. Banks take advantage ofrepparttar 148880 uninformed. Some want their customers to be uninformed, becauserepparttar 148881 uninformed individual poses no threat and can be manipulated easily. An uninformed person may acceptrepparttar 148882 banks offer simply becauserepparttar 148883 interest rates are lower. However, some banks try to give lower interest rates for refinancing, but letrepparttar 148884 consumer end up paying more overrepparttar 148885 lifetime ofrepparttar 148886 loan. Additionally, banks can expose you, as a borrower, to greater risks than you had with your previous mortgage with a higher risk loan.

Get Wealthy With the Rule of 72

Written by Vincent R. Moloney MD


When it comes time to retire how many people would like to have a nest egg that is 2 or 3 or even 4 times larger than what they have? With an answer so obvious allow me to explain how you can make it happen for yourself.

First we'll explainrepparttar Rule of 72. If you dividerepparttar 148867 number 72 byrepparttar 148868 rate of return on your investmentsrepparttar 148869 answer isrepparttar 148870 number of years it will take to double your money. If you are getting 7% annually then 72 divided by 7 equals a little over 10 so it takes 10 years to double. A 9% return divided into 72 gives us an 8-year time span to double. A 10% return needs only 7 years to double.

Now what return can reasonably be expected in our real world? Overrepparttar 148871 last 100 years or sorepparttar 148872 United States stock market has returned 10 to 11% per year on average, depending whose figures one reads. We'll userepparttar 148873 figure 10%.

Suppose at age 37 you start saving for retirement. We choose a reasonable sum of 110 dollars a month. In 7 years you notice that you have accumulated 13,200 dollars. Another 7 years go by and you see that you have nearly $40,000. Atrepparttar 148874 end of 21 years you have $93,000. By age 65 you notice that 28 years have gone by and you have $200,000 dollars. The rate of return kept steadily increasing. Those of you with some mathematical leanings will recognize this as an exponential rate and also as compound interest. This website has a good calculator: http://www.tcalc.com/tvwww.dll?Save

Also notice that 28 represents four 7-year spans, time forrepparttar 148875 first dollars to double four times. Observe that duringrepparttar 148876 first 7-year period you accumulated $13,000, duringrepparttar 148877 2nd 7-year period $27,000, duringrepparttar 148878 3rd 7-year period $43,000 and duringrepparttar 148879 4th period $107,000. Duringrepparttar 148880 4th period you grew eight times as much as inrepparttar 148881 first period. All without changingrepparttar 148882 amount saved, $110 per month.

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