Posted by Melvin on Dec 21, 2009 in
Stormy Life Many homeowners are considering taking advantage of today’s historically low interest rates by refinancing their mortgage. In many cases, they are able to save hundreds of dollars per month by refinancing. Whether mortgage refinancing makes sense for you can be easily determined by doing some simple math.
The first consideration is how much lower your new interest rate should be than your current rate. There is a common belief that if current rates are more than 1.5 to 2 percentage points lower than your current rate, then you should refinance. That’s a good starting point, but there is more to the story than just the raw interest rate.
Your real concern should be the total cost of the mortgage refinance both in the short term and the long term. The total cost includes not only the monthly mortgage payment (principal plus interest), but the closing costs, as well. Closing costs typically include such things as:
- Appraisal fee
- Credit Report fee
- Processing fee
- Commitment fee
- Tax Service fee
- Flood Certification fee
- Discount points (if any)
- Title Insurance (based on mortgage amount)
- Recording/Notary fee
- Per diem Interest
- Real Estate Taxes
- Home Insurance (percentage of mortgage amount)
Adding all these up can easily run into several thousand dollars, even without discount points. This is money that must be paid at the loan closing. In the case of a mortgage refinancing, lenders often advertise “no closing costs”, which is a bit misleading. The truth is that there ARE closing costs, but they are paid out of the proceeds of the loan rather than the pocket of the homeowner. This is possible when the homeowner borrows against the equity in their home as part of the refinancing.
As an example, let’s say that your home is worth $175,000. Your original mortgage was for $125,000 over 30 years at 7% interest. You still owe $100,000 on the original mortgage. The closing costs for your refinance are $3,000. If you simply refinance the $100,000 amount at a lower interest rate you will reduce your monthly payments, but you will have to pay the $3,000 closing costs out of your own pocket. If you choose the “no closing costs” option, your $3,000 closing costs will be paid by simply borrowing the additional money against the equity in your home (i.e. the value of your home less the amount owed). Your mortgage will now be for $103,000 instead of $100,000.
So, what about that widely held 2 percentage points belief we mentioned earlier? The monthly payment for a 30-year $125,000 mortgage at 7% interest is $831.63. For your new 30-year $100,000 loan at 5% interest, the monthly payment is $536.82, a savings of almost $300 per month. If the new mortgage is $103,000, the monthly payment is $552.93, still saving you over $275 per month. In this scenario, considering only the monthly savings, you would recoup your closing costs in as little as 10 months.
Sounds great, right? Well, there’s another factor you need to consider. If your original mortgage was $125,000, you’ve been paying on it for 152 months to get the principal balance down to $100,000. Therefore, you have 208 months left before the mortgage is paid off under the original terms. If you continue without refinancing, you’ll pay an additional $172,978 (208 months at $831.63 per month).
If you refinance your mortgage for the $100,000 you currently owe, you’ll pay on it for 360 months at $536.82 plus the $3,000 closing costs for a total of $196,255.
$172,978 <– payout without refinancing
-196,255 <– payout after refinancing
-$23,277 <– difference
In this case, by refinancing you will end up paying an additional $23,277 for the new loan over the original mortgage. This works out to about $775 per year, which may be acceptable to you in order to have the lower monthly payment now. You are the only one who can make that decision based on your personal financial situation. The important thing when refinancing your mortgage is to consider all the ramifications.
This is another of today’s money secrets that can help you get the most for your money in today’s lending market!
Posted by Melvin on Dec 21, 2009 in
Stormy Life Ultrasound machines use high-frequency sound waves to provide pictures of the organs and structures of the body. Ultrasound scanners incorporates a computer, a video show screen and a transducer probe that’s used to scan the body. The transducer could be a small hand-held equipment attached to the scanner. The physician spreads a lubricating gel on the world being examined and then presses the transducer against the skin to get images. The sound waves that are sent by the transducer through the body are mirrored by the inner structures as “”echoes.”" The echo patterns are then recorded and displayed as real-time visual images.
Nearly all babies receive a dose of ultrasound, however even at the most effective centres wide variations occur in detection rates for babies with major heart abnormalities. Both national and international detection rates differ widely in published studies (that are typically undertaken in centres of excellence), but the bulk of mothers can be exposed to older machines in standard hospitals and clinics. The talent of the operators can vary (everybody has to be told someday), however even with the most effective ultrasound machines and the best operators misdiagnoses occur. A study from Oslo (Skari et al., 1998) looked at how several babies born with serious defects had been diagnosed by antenatal scans, and whether the early diagnosis made any distinction to the outcomes. Girls in Norway have a scan at seventeen to twenty-one weeks done by trained midwives, who visit obstetricians if an abnormality is suspected.
3 out of the 13 babies diagnosed antenatally died. There was one death within the twenty-three undiagnosed. All thirteen babies with antenatal diagnosis were delivered by caesarean. Nineteen of the twenty-three undiagnosed babies had an uncomplicated vaginal delivery. The diagnosed babies had lower birth weight and 2 weeks shorter gestation. Although the babies with pre-diagnosed abdominal wall defects received surgery additional quickly (four hours versus 13 hours), the outcomes were the same in each groups. Although little, this is an vital study.
Pregnant ladies often automatically assume that antenatal detection of serious issues within the baby suggests that that lives will be saved or illness reduced. Knowing concerning the problem in advance failed to profit these babies; additional of them died. They got delivered sooner, after they were smaller, a selection that might have long-term effects. All twelve babies with abdominal wall defects survived. Except for the six detected on the scan, their length of hospital keep was longer and that they spent longer on ventilators, though the numbers are too tiny to be significant. They were operated on sooner (four hours rather than thirteen hours) however the outcomes were the same.
atlantistowncrier.com
Posted by Melvin on Dec 21, 2009 in
Stormy Life To many, the concept of their credit score is something that shrouded in mystery. Basically, it’s a score that determines your credit worthiness. The higher your credit score, the more credit worthy you are deemed to be.
If you are a consumer in the American economy, this is something that you need to know. It doesn’t matter whether you have or don’t have a credit card. To a major extent, your credit score will determine your life style.
For one thing, it is the determining factor as to whether or not you get that loan. And if you manage to get a loan, it has a major impact on the amount of interest that you will pay. Your credit score will ascertain whether you are offered special credit card deals such as the lowest credit card rates, bonus miles, rewards program, and the such. Plus it determines if you’ll be able to get a mortgage on a home or if you will be forced to rent.
So, being that this score is evidently so important, what is it exactly that determines your credit score?
A number of factors go into determining one’s credit score. Probably, first among them is your payment history. A late payment on your bill will drive your credit score down. The later your payment is, the further down your credit score drops. More than one late payment will drive the score down even further. Bottom line – if you don’t want your credit score to go down, don’t be late making your payments.
A high debt balance also drives down your credit score. In other words, the closer you are to the credit limit on your cards, the lower your credit score will be.
Lastly, how long have you had credit? Or, more precisely, how long have you been in their database? A teenager, or a person who tends to purchase everything with cash, will most likely have a lower score than someone in their sixties who has had credit since they were in their twenties.
You can read more articles concerning credit card bad credit ratings, as well as applying for college credit cards at Susanna’s site.
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