As if understanding all the basics of a mortgage like interest rates, amortization, escrow, and PMI weren’t complex enough, there comes one more product that really convolutes the entire process even further: points. Like all of the items mentioned above, knowing whether or not to purchase points can have significant long-term implications on how much money you may actually save or lose throughout the life of the mortgage. This post is going to explain how all that works and I’ll even give you a Microsoft Excel worksheet to try it out yourself. … [Read more...] about Which is Better – Points or No Points on Your Mortgage?
Archives for February 2012
The Now or Later Tax Refund
Yea! I got my income taxes done. Any day now I should be expecting both my Federal and State return to direct deposit into my bank account. I’m not getting back as much this year as I had hoped, but it will still be quite a handsome amount. Just like back-to-school signs and Christmas decorations, you can almost pin-point the time from December on when a swarm of tax-filing hysteria starts to show up in our lives. But among the tax software and lists of documents we’re told to dig out of our file cabinets, financial advisors also like to argue one age-old debate: • Should you wait to get your big tax refund check or take it throughout the year? … [Read more...] about The Now or Later Tax Refund
What Does the Future Hold for Facebook?
It’s the real life “Revenge of the Nerds” triumph story: Facebook will finally be announcing an IPO (initial public offering) making everyone involved unimaginably rich! For anyone who doesn’t know what an IPO is, it’s when a company sells its stock to the public for the first time. It’s usually a big deal because it gives the company the chance to raise a ton of money while it gives the public a chance to own a part of the company and capitalize of their success. For example, I could kick myself back in 2004 when Google first went public and sold for $85 a share. This week it closed trading around $596. But does that mean we should all run out and buy Facebook stock? Even a Goliath-valued company such as that still has its critics … [Read more...] about What Does the Future Hold for Facebook?
Ways to Squeeze Extra Cash – Sorta …
It’s important to know that you don’t have to agree with every single piece of financial advice you’re given. I know I don’t. I was reminded of this fact recently when I read an article on Daily Finance by Molly McCluskey from “The Motley Fool” entitled “5 Unconventional Ways to Squeeze Extra Cash Out of Your Budget”. I’m all for fresh ideas on ways to save money, especially if it can be shown to produce results. But although this article may have had its heart in the right place, some of the advice may be a little misleading. Let’s review each one and I’ll tell you why I felt this way. McCluskey’s Tips: 1. Rent, don't buy. Where to begin. Everyone knows you should never do a rent to own program for things that rapidly lose … [Read more...] about Ways to Squeeze Extra Cash – Sorta …