Wedding Favors
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Be Cautious When Using Your Nest Egg as an ATM
   
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Lucky Charms And Talismans
Many of you already own several lucky charms or talismans. You just may not be aware of the object's symbolism or meaning. Below I have compiled a .....
Many of you already own several lucky charms or talismans. You just may not be aware of the object's symbolism or meaning. Below I have compiled a .....
About five years ago I moved from the ranks of being a renter
to that of being a homeowner. Now, not a week goes by that I
dont receive some type of offer through the mail encouraging me
to refinance my mortgage, open a home equity line of credit
(HELOC), or apply for a home equity loan.
Payoff High Interest Credit Card Debt! Lower Your Monthly
Payments! Buy A New Car! Refinance And Get Money Now! scream the
slogans splashed across the envelopes.
The promotional letters inside point out how easy it will be for
me to get the extra cash you need NOW! They promise no out of
pocket costs with a newly refinanced 30-year loan.
Could I use some extra cash NOW? You bet I could! Who needs high
interest credit card debt? Not me, no way, no how! Buy a new
car? Hmmm, I like that new Pontiac G6 Ive seen on tv, maybe in
a sleek titanium color with black trim?
For thousands of U.S. households Home Sweet Home is rapidly
being replaced with a new sentiment - Home Sweet ATM.
According to the latest Federal Reserve study, 45% of homeowners
who have refinanced their mortgages pulled cash out and 74%
wound up lengthening their mortgage by about six years. Only 17%
shortened their loan term opting to downsize to a 15-year
mortgage.
In a period of six years, Americans have more than doubled the
amount owed on home equity loans and lines of credit, nearing
$766.2 billion, according to the Federal Reserve.
If youre in your 40s and you refinance on a new 30-yr. loan,
youll be in your 70s by the time your loan ends. Even if you
shave off a few years by paying down your principle, youre
still risking not owning your home free and clear as you
approach retirement age.
What happened to the era when your home was considered your nest
egg to be used only for life-threatening or life-changing events
Weight Loss Begins In The Mind
Not only was I fat, I was in poor health too.
Constantly fatigued, constipated through over-eating, with an aching knee to boot, housework almost left .....
like paying for a childs wedding or for a medical emergency?Not only was I fat, I was in poor health too.
Constantly fatigued, constipated through over-eating, with an aching knee to boot, housework almost left .....
And worst of all, many new homeowners are using their homes
equity as another source for financing new debts.
Think twice before using home equity to pay off credit card
balances. If youre already overspending on your credit cards
now, what makes you think anything will be different after you
pay them off with a loan or line of credit? Many people just
wind up deeper in debt or facing bankruptcy because they
couldnt resist charging their cards up again.
Keep this in mind before tapping your homes equity - Your loan
or HELOC is secured by your home. Default on the loan and you
could lose your house, even if you declare bankruptcy!
The best use for home equity is to make improvements that add
value to your home. Remodeling a kitchen or bathroom, adding an
extra room or creating a master suite are just a few of the
hot improvements that can really pay off when it comes time
for you to sell.
If your home truly is your nest egg, be smart about how use its
equity. Make sure that it fits in with your overall financial
plan and golas. Otherwise, you could be left without a nest and
just the egg!
About the author:
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2005, www.yourfreecreditreportnow.com Author: James H. Dimmitt
James is editor of "TO YOUR CREDIT", a free weekly newsletter
with tips to help you manage your personal finances. Subscribe
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