Sat Jan 14, 2012, 2:00 am | 1 Comment
Many folks save coupons and look for discounts in all kinds of everyday life merchandise. We like to save, period. That’s Okay and dandy. We need to save as much as we possibly can. However, there may still be many folks who have shun to take advantage of the vast discounts that are available where you can save a lot more when you apply yourself to it.
Experts who are knowledgeable in bargain hunting might say that some big ticket items in life are on sale right now. For example, if you are thinking about refinancing your home, it may be the right time to do so. Lately, if you check out, 15-, 20-, and 30-year mortgage rates are possibly the lowest in history.
Refinancing your home
This is the most important piece of big ticket items where you can save big and for years to come. Mortgage rates are extraordinarily low. To take advantage to the fullest, you should have credit score better than 720. If it’s close to 800, then you have hit the jackpot. You would also need to have a steady job, along with 20% equity (typically) or more in your home, and almost non-existent debt. Mortgage rates fall to new lows.
Those who refinance can often drop their interest rate a full percentage point or more. That can take thousands of dollars off the life of your loan. If you do not qualify for refinancing but have extra cash in the bank, you may want to consider making one extra mortgage payment a year. That can also take years off your loan. Before applying for refinancing, do the exercise that bankrate offers with refinance calculator.
Make home improvements
Home equity loans also carry low interest rate. You can save big in energy cost if your heating system is outdated and is performing poorly energy-wise, or you may want to install energy-efficient windows and appliances. Now may be the best time to do so.
These types of improvements can go a long way toward reducing your energy cost on a yearly basis. That means you will have more money to put toward other savings goals. Your local utility services can also inform you about rebates and loan programs in your area. So give them a call.
Reduce your car payments
It seems that auto loan interest rates have also sunk to record lows. The average rate for a 48-month new-car loan dropped to 5.29%, while the 60-month new-car rate to 5.32%. Refinancing on your car loan can help you save hundreds or even thousands of dollars over the life of your loan.
Plan ahead for college costs
Don’t wait till your child is just about college age. You can start doing research, while the child is still 5 years away from attending college, for any potential scholarships, loans, and financial aid packages that may be available to you and your child. You may find it very beneficial to invest properly in those 5 years. Don’t wait till the last year of high school.
In a Nutshell
The most important thing is that you must be standing on solid ground financially. So get rid of any debt before it gets rid of you. Take advantage of these fine points if you are in strong financial health.