A “point” is one percent of the loan amount, typically paid in cash to the lender as a fee. So, if your loan is $300,000, one “point” equals $3,000 paid to the lender. There are several different kinds of points. There are “discount points,” where every point you pay lowers your interest rate by a certain amount. Learn more about points and what they mean for your loan.
With such a wealth of options available to consumers, choosing a credit card with great rewards has never seemed easier. Credit cards offer more unique rewards than ever before, making it difficult to choose what would be most useful to you. Should you rack up airline miles or hotel points? Do you spend enough to [...]
A home owner is tempted by all the no cost mortgage advertising. He is looking to refinance his mortgage and home equity line of credit (HELOC). Ilyce explains how to shop for a mortgage and advises everyone to beware of deals that seem too good to be true.
Being smart about refinancing isn't about picking an arbitrary time in which you'll pay off the loan. It's about breaking even before you sell the home or refinance your loan again. If you can save money starting tomorrow through financing, refinancing is a no-brainer. But once you get to the point where it takes 12 to 24 months to pay off a refinance, you risk losing money on the deal.
When taking out a first mortgage or refinancing, you may want to consider paying "points." A "point" is one percent of the loan amount, typically paid in cash to the lender as a fee. There are several different kinds of points. There are "discount points," where every point you pay lowers your interest rate by a certain amount. The lender may charge you a point or two as a flat fee as well.
A reader fears they have been scammed on the fees for their refinancing. Ilyce says they need to compare their loan to other offers to determine if they have been scammed, but she emphasizes the importance of shopping around for a lender.
The old rule of thumb for refinancing was to wait until you could lower your mortgage loan interest rate by at least 2 percent. That refinance rule no longer holds true. The new way to determine whether the time is right to refinance is if you can recoup your closing costs within six months of the refinancing the mortgage loan.
Your credit history and credit score determines the best credit card deals a consumer can get. Lenders treat your credit report and credit history as a running score of your financial life, and use that to decide whether you're worth the risk for a credit card, car loan or mortgage. Clean up your credit score and build a good credit history in order to get the best credit card deals for you.
At the end of the year you can take some steps to prepare for your taxes for the next year. You can prepare for taxes by saving money to your 401(k) account or prepaying your mortgage. What else can you to do prepare for filing your taxes?