" Free money, free money! Well, almost."
Are you still renting and waiting to buy your first home? Have
you refinanced your home yet? Are you still delaying the purchase
and installation of that home improvement? Stop delaying! Move now
before the interest rates go up.
Banks are lending large amounts of money with low interest rates
to people like you and me. The lending is in hopes that we will
spend and get the economy back on track. This is the opportunity
we have been waiting for, it is time to take advantage and borrow.
But, only borrow if it will be good for you!
Before you run out and borrow, make sure that you have a solid
plan for your borrowed money. Make sure your plan will benefit you,
not the banks. Make your plan a plan that will increase your wealth.
Do not borrow money just borrowing to borrow because of low rates.
A good plan that will make the borrowed money work for you includes
long term goals and short term procedures. Before you borrow, make
sure you have the plan in place and all of the details accounted
for. Never borrow and pay interest (even low interest) on money
that will be spent on consumable goods that will not create a financial
return for you over the long run.
If you are currently renting your residence, I am sure you have
been told that you are throwing money out the window every month.
You are probably paying a higher rent payment every month then what
you would have to pay as a mortgage to own your current residence.
Every time you send a rent payment, you are paying your landlord's
mortgage and giving him/her some extra spending cash. So why not
borrow the money now, at a low interest rate, and buy yourself something
that will increase your assets. This way every month you will be
putting money into your pocket rather than your landlords.
If you already have come to this realization and have purchased
your home, now is the time to consider refinancing. Only refinance
if it will save you money in the long run not just on your monthly
payments. Remember, when you refinance, you will have to close on
your home again and pay those lovely closing costs. This may not
be worth the monthly savings on the lower mortgage payment. In general,
if you will not take two or more percentage points off of your mortgage,
it probably is not worth it. Just because you are lowering your
monthly payment, it does not guarantee you will be saving money
over the long haul. Be sure to do your homework.
Considering a pool? How about an addition or a carport? If it will
increase your property value and you will get good use out of it,
now is the time to borrow and get to work. Low interest home improvement
loans can add enjoyment and value to you home. The will also make
your home more marketable when the time for sale comes. With low
interest loans, you can improve the home and raise the property
value of the home more than the amount you borrowed. Say your home
is worth $100,000.00. You borrow $10,000.00 to put in a pool. You
may have increased your property value by $25,000.00, to $125,000.00.
When you sell the home, you pay the $10,000.00 back and walk away
with $15,000.00, and you enjoyed a pool for the last year or so.
If you fit the profile of any of these individuals, you may want
to evaluate you current situation. Banks are lending large amounts
of money with low interest rates. This is the opportunity to borrow
before interest rates go back up. But remember only borrow if it
will financially benefit you!