The Top 3 Reasons To Refinance Right Now

negative-interest-rate1-300x294Are you stuck in a high-interest-rate mortgage and taking out some refinance loans Long Island? This may be the perfect time. Interest rates are extremely low and lenders are loosening their criteria for refinancing. There are several reasons to refinance, but the primary ones are to get a lower interest rate or get out of a variable rate loan, pull out equity, or to lower a monthly payment. When you begin researching refinancing, you will find there are two types of refi loans: cash out and rate and term refinancing. The cash out is exactly what is sounds like, pulling cash out of the loan and the rate and term refi is when you refinance a remaining balance for a different term/and or lower interest rate.

This is a great time to refinance. Interest rates are lower than they have been in years. While it is currently cheaper to borrow money, it is also true that this will not last forever. It does not appear that interest rates will climb drastically any time soon, but it is still a good idea to refinance now instead of waiting.

Another good reason to refinance now is that insurance for mortgages has also decreased. The savings from lower mortgage insurance costs can be $900 a year for a refinance. If you have an FHA loan, it is an especially good time to refinance since the Feds recently lowered the mortgage insurance rate.

If you have owned your home for several years, it has probably appreciated in value. Homes are starting to recover their value following the housing bust, so it is a good time to see if you can refinance your home and pull out extra cash if it has increased in value.

Right now is one of the best times in recent history to refinance a home. Whether you want to lower an interest rate, pull out some cash or modify your mortgage payment, there may never be a better time.

In Today’s World Should People Invest Or Just Keep A Savings Account?

happy businessman with heap of moneyIt’s hard to tell what the stock market is doing anymore, isn’t it? The entire world has still yet to fully recover from the economic recession nearly a decade ago. Markets are more globalized than ever, and while the US economy is still suffering, the stock market seems to be thriving. Is it a bubble? Does it make any sense? How can the DOW be so far up while the blue chip companies everyone has depended on for so long are still struggling to get back to levels their stock prices were enjoying prior to the recession?

There are so many things to think about when it comes to where to put your money. Should it be invested, and what should your investment choices be? Is there enough security when it comes to investing in the stock market, or is your money better off in an FDIC insured account? One thing for certain, you could be sacrificing the extra compound interest over the years, which can amount to an account balance that is thousands of dollars less than it would have been. Is that really the case though?

It’s hard to make a good argument for the average person investing in regular stocks right now. The market is changing, and small investors have other alternatives. That of course means they can invest their money without having to simply keep it in a savings account or start a certificate of deposit. In essence, investing in the stock market can still be key.

Think about the mutual funds and exchange traded funds for a moment. These investment vehicles allow for better diversity, and there are many of them with great track records. There will always be risk involved, but investing is key to building a better financial future. How you invest is what makes the difference.

Before We Start

Before we even get started with the training of how to successfully invest in the stock market other diversification of investments, we need to spend a few minutes explaining exactly how the stock market works. I could write an entire dissertation on the subject, so instead, here’s a nice YouTube video that expresses the general idea: