Monthly Archives: February 2016

Pros and cons of owning a home:

Are you ready to own your own home?

Surely one of your dreams is to become one day own your own home.  Before deciding to purchase your home, discusses the pros and cons of having your own home.

PROS of having your own home:

• Increase your heritage. Having equity is important for your financial health in the long run.  In the case of a house, your equity is the value of the home less the amount of money you owe for it.  For example, if the value of your home is $ 200,000 and you have $ 125,000 on your mortgage, your equity is $ 75,000.

• It’s a good long-term investment. The houses generally increase in value over time, so your home could be a good way to invest your money in the long run.

• Owning a home could reduce you the amount of tax payable, as the interest paid on expenditure on the acquisition, construction, renovation, expansion, improvement and maintenance of your home, as well as payments for items of basic services including water, gas , electricity, telephone if you have a home business, are deductible.

• The house is a large asset that can inherit your family.Home ownership

• Have a proper roof gives you security, without worrying that the owner will not renew the contract or the lease will rise much.  Once you pay the mortgage, your family will eliminate this large expenditure of your budget and you can use this money for other priorities.

• If the house is yours, you’ll want to do renovations or decorate as you like.

Cons of having your own home:

Continue reading Pros and cons of owning a home:

How to pay off my mortgage faster:

With the arrival of spring comes the most important period when the purchase and sale of property increases. The months of March, April, May and June are the busiest in the housing market.Mortgage

One of the most important variables in buying and selling property is the mortgage loan that is used to acquire the property. Today we will discuss some strategies to pay off our mortgage faster, this will save thousands of dollars in interest and these savings can be used for the education of our children, for our retirement, or for the purchase of a second property.

First let’s make a summary of the most important variables in a mortgage:

  •  The payback period is the time we have to pay our total mortgage.
  •  The term, this is the term by which our mortgage will have the same interest, same payments, and other variables. When the term ends we have to renegotiate the interest and the different variables.
  •   Fixed or variable mortgages, fixed mortgage maintains a fixed rate for the term chosen. A variable mortgage, the interest rate can vary depending on changes of interest rates.
  • Open or closed mortgages, open mortgages have the option to pay back the loan at any time without a penalty, closed mortgage has a few options, such as making double payments per month, and up to 15% of annual payments, but if we end mortgage before the term chosen have to pay a penalty, closed mortgages are the most common, and generally open mortgage has a higher interest.To demonstrate the different strategies, we will use a numerical example where we can see how to pay our mortgage on a open term, and how to save thousands of dollars in interest:

First, we can change our monthly payments biweekly payments. In the case of a mortgage of $ 250,000, our monthly payments of principal + interest would be $ 1,181.83, end up paying the mortgage in 25 years, and would pay $ 104,549.56 in interest. If we change payment every two weeks, our payments would be $ 590.62, and we would pay our mortgage in 22 years and three months, saving $ 13,218 in interest.
Second, we can make extra payments. These extra payments will go directly to the mortgage principal. If we make an extra payment of $ 1,000 per year (making payments biweekly principle + interest), we will pay the mortgage in 21 years and we will save a total of $ 21,141 in interest.
Third, we increased the principle + interest payment every two weeks (we paid an extra $ 1,000 per year). If we increase our payments by 2%, $ 12 more every two weeks, we will pay the mortgage in 18 years and we will save a total of $ 31,569 in interest.

I enclose a link where we can make the same calculations, changing the variables of our existing mortgage:

http://www.mortgagecalculator.org/

In short, some of the options to pay before your mortgage and save on interest would be: make payments on your principle + interest more frequently, making extra payments per year goes directly to the loan principle and decreases the balance + interest.

How to reduce your cable bill:

While the transmission of TV in the US can be accessed through the digital waves and cable TV with additional channels.  Using a TV antenna or digital decoder, you can receive VHF and UHF channels from 2 to 51. For a monthly service charge, a package of cable television can expand your options for digital television with more than one thousand additional channels.TV remote

 The FCC Report:

The FCC conducted a survey on the average cost of cable television.

 The average cost of cable TV providers ranges for cable TV services and customer location.  Although providers of cable television services offer customers competitive prices, location can be a major factor when it comes to costs. Since the cable is a communication service within the US, the monthly charges includes taxes, surcharges and fees.  These additional fees fluctuate, depending on what part of the country you live in. According to the Federal Communications Commission in an article published in May 2014, the average monthly cost of cable TV is $64.00.  This total does not include the taxes, surcharges and fees which would round the average monthly bill to about $80. Continue reading How to reduce your cable bill:

How to reduce your cell phone bill:

This is a wild guess, but I bet your monthly cell phone bill is higher than you’d like it to be. If you use a Smartphone as Android or Apple iPhone, which particularly have a higher monthly payments, with data and text messaging plans. Even though you’re locked into a contract with your service provider, there are solutions to reduce your mobile phone bills and get it under control.
Clearly, one way to reduce monthly mobile phone bill is to switch to a cheaper plan with fewer minutes. However there are other options:

  1. Texts for free:Reduce cell phone bill

You do not have to pay to send and receive text messages (SMS). For example, a number of iPhone applications that allows people to text at no cost. Usually these programs, such as SMS Freedom (an application for $2.00), send texts to the recipient cell phone through your email account. Responses are received as an e-mail, as well. While not ideal, you can save $5.00 and up per month.
In addition, Gmail users can send and receive free text messages from their computers, using the Google Talk chat feature. Continue reading How to reduce your cell phone bill:

Tips to save money on Auto Insurance:

One of the many items of expenditure in most families that can save money is on the car insurance. Frequently through overlook or misinformation, we are not worried enough about the insurance of our vehicles and that is a clear failure of the balanced home budget. Insurance can be a key element in combating the predicament, since it is not very difficult in many cases to cut cost without lowering our coverage.Fortunately, there are several ways to save on auto insurance.
Although methods below will not prevent you to pay sky-high prices, they are proven methods that could cut hundreds of dollars from your premium:Car accident

• Drive an old car daily:

Surely not to draw attention, driving a Ford Escort 1993, compared to a 2003 Corvette, but you save a lot of money on your auto insurance policy. The steel-made cars are cheaper to repair than sports car made with fiberglass. The rate of injuries and thefts is also lower in the Escort than in a sports brand. Furthermore, if your car is worth $3,000 or less, you can choose to remove collision insurance on your policy.  The older vehicles save money due to the fact that they do not need coverage for physical damage (to the vehicle): That alone can add up to save hundreds of dollars a year. Continue reading Tips to save money on Auto Insurance: