You Could Benefit from Historically Low Interest Rates

Interest rates fluctuate over time. The 30-year mortgage rate reached as high as 18.6% in 1981 and as low as 3.3% in 2012. Today’s rates are close to those from 2012, and in August 2020, actually fell even lower, to 3.19%.

This means that now may be the perfect time to consider refinancing your mortgage. A rate decrease of even 1% could save you tens of thousands of dollars over the life of your loan. You could benefit by either having lower monthly mortgage payments, or being able to pay off the balance of your loan faster with the same monthly payment.

You Could Take Cash Out

If you’ve been paying down the principal portion of your mortgage, then you’ve been accumulating equity in your home. Now may be an opportune time to take advantage of that equity.

A cash-out refinance could give you access to cash at a lower cost and longer term than other options, like a personal loan (average personal loan rates fluctuate between 5.99%-28.99% depending on loan amount and credit qualification). You could fund any short or long-term goals you may have, such as improving your home with a renovation, paying down credit card or other debt, or covering college tuition.

What You Want vs. What You Need

Take stock of the channels and shows you watch most frequently, you might find that you are paying for channels that you do not need or ever watch. Depending on your preferences, you may be able to update to a less costly or more relevant package.

Similarly, evaluate your and your family’s internet usage by asking yourself a simple question…what do you use it for? If you’re a casual internet user, you could save by lowering your internet package. If you do a lot of streaming or use the internet for your home office, you must have high-speed Internet. Check with your provider on what Internet speeds you can bundle with your cable package to get the best value for your needs.

As bundle pool is getting more competitive, many providers are offering discounts on high-speed internet bundled with a cable package.

Re-evaluate Your Extras

One sneaky thing that contributes the most to your TV and internet bills is extra add-ons. This is a great time to review and eliminate add-ons you may not be using, like DVR or premium channels, to help save on your monthly bill. You may also want to keep your eyes open for new customer deals. When you bundle television, Internet, and phone, there are often great perks like DVR upgrade, free installation, free premium channels, and much more.
Negotiating

Doing prior research is very important if you want to get your hands on a great bundle price. Look at the utilities you want to bundle and figure out what you’re currently paying for each, and then what the cost difference would look like when you bundle them together. Call several providers (including your current one), and compare their price and offerings. Be aware of contract length and make sure the terms fit your preferences.

With the right bundle, you could be on your way to saving money on your monthly services.

We put together four easy steps to make your grass look its best while still conserving water.

1. Feed Regularly

Just like any other plants, grasses also rely on nutrients to survive. Regular feedings of two-four times a year will not only keep your lawn fresh and lush, but also supply the nutrients your lawn needs to endure the stresses of wear & tear, weather, and drought. Feeding your grass can also help in growing out deeper roots that can adept at seeking out water way down in the soil. Lawns with deeper roots require less watering.

2. Mow at the Right Height

While short lawns are often preferred in many neighborhoods, cutting lawns too short can result in your grass losing its natural green hue. This is because shorter blades of grass are not capable of retaining moisture. Ideally, you should adjust your mower to a height of about two inches. Grass mowed at the proper height supports deeper roots to find water and nutrients in the soil. Taller blades of grass shades soil, reducing water evaporation, keeping it cooler, and hydrated longer.

3. Leave Your Clipping on the Lawn

While mowing, leave the grass clippings on your lawn as they tend to break down quickly and return nutrients to the soil. Mow at regular intervals so that too much of the grass blade isn’t removed at one time, as this can shock the grass and affect its growth.

4. Harvest Rainwater

Mother nature provides the earth with a free source of water that we often neglect. Invest in rain barrels that are designed to collect rainwater to use for later throughout your landscaping. While harvesting rainwater probably won’t cover all of your watering needs, it will definitely help in conserving public water on your lawn.

By following these steps, you can do your part to conserve water and balance lawncare within the needs of your community.

High Energy Bills

One of the first signs that indicate issues with your HVAC system is a drastic increase in your energy bills. When nothing in your daily routine changes, like your usage patterns and weather conditions, yet you notice that your energy bill is higher than usual, your HVAC system might be the culprit. If the higher energy cost is tracked back to your HVAC system, this means that your system is not performing as efficiently as it should be. Sometimes the problem causing higher energy bills is fixable, so contact your local technician before you trash your unit.

Unusual Odors

Air coming out of your HVAC’s vents should always be crisp and clean. If you smell an unpleasant odor emanating from your HVAC unit, it is a tell-tale sign that something is wrong with your system. Mustiness, burning odors, and chemical smells indicate the immediate need for repair or even replacement. Be very careful with these smells as some chemicals could be dangerous.

Odd Noises

A well-maintained HVAC system typically operates quietly, buzzing to itself in the background. But if your system starts making loud and disturbing noises, like squeaking, banging and clanging, this means that your unit needs maintenance or repair.

Inconsistent Air Distribution

If the temperature of your home is the same throughout all parts of your home, your HVAC is running smoothly. However, uneven temperature in some rooms or areas of your home could be a sign that your HVAC system is not performing efficiently.

Puddles and Condensation

There shouldn’t be any pool of water around your HVAC system, as a puddle is a sure-fire sign that something is leaking or your drain line is clogged. Moisture from your HVAC that should be draining outside is backing up and leaking into your home. This leakage can have a hazardous effect on your home and also shows that there’s probably a faulty part in your HVAC unit.

Ignoring these HVAC trouble signs can incur higher repair or replacement costs. That’s why it is advisable to address the situation at an early stage, which in the end could save you both money and time.

1. Don’t advertise your absence

If you’re thinking about going on a vacation, try not to make it obvious that your home will be empty for a few days. Asking your trusted friend or neighbor to collect your mails is no doubt a smart move to hide the fact that your home is currently unoccupied. You can also use timers to make lights around your front and back yards, inside the house, along pathways, and near your garage, and switch them on in the evening. This will make intruders skittish and make your property less of a target.

2. Secure the doors

You don’t want a burglar to stroll in through the front door of your home. Do a regular inspection of all your doors to make sure the hinges are not loose, and the door frames are strong. If you have a pet door or a mail slot, don’t forget to secure them before going out so that an intruder can’t reach through to unlock the door. You can go for a deadbolt or strike plate to secure your doors. If you want a high-tech solution, add a glass break sensor or a door sensor to scare off thieves. Changing a lock when you move into a new home is also a cautionary step that could further beef up your home security.

3. Lock the windows

Just like doors, windows are also the most common entry points for thieves. When shopping for new windows, you might want to upgrade to shatterproof glass and key-operated levers. If new windows aren’t in the budget, reinforce your existing windows with security film. Adding window bars and planting prickly bushes under first-floor windows are a few budget-friendly window-proofing ideas.

4. Set up a security system

Burglars can be tech-savvy too. To protect your home from professional thieves, set up your home with a security system – it can be a DIY system or one that comes with professional home automation and 24/7 monitoring. There are plenty of security options for every budget and every level of security. Always remember to engage the alarm to make the home security system work effectively. If you need help choosing the right security system for your home and your budget, ask a local home security specialist near you.

By taking these simple precautionary steps, you are sending the message to a potential burglar to keep moving.

Replacing a roof is not just a costly investment, it’s a huge undertaking that should be carefully planned. With so many crucial decisions on the line, it is essential to make the right choices while planning a roof installation so that the new roof not only goes well with your home’s exterior to increase the curb appeal, but also improves the efficiency of your home. Before you hire roofing contractors, you may want to ask the following questions.

Which Roof is Best For a Hot Climate?

When you live in an area with soaring temperatures, you need a roof that deflects sunlight back into the atmosphere. While asphalt and wood shingles are not the best pick for regions with triple-digit temperatures, you can go for metal shingles. Metal roofs do extremely well under extreme temperatures as metal is reflective and considered a cool roofing material. Even though a metal roof costs more than an asphalt roof, the energy savings, combined with its longevity, can make it a worthy investment for your new roof.

Clay roof shingles are another attractive option for homeowners who love rustic architectural touches and want to beat the heat. Clay is thermal resistant, eco-friendly and is slightly less expensive than the metal roofing.

If you want to lower your carbon footprint, consider a “green” roof. A green roof system is an extension of the existing roof for growing flora. Depending on the type of green roof you are aiming for, the plants may be modular or have drainage layers or filter cloth. However, all green roofs involves water-proofing and root repellent to prevent the structure from any damage. Also known as ‘living roofs’, green roofs last longer than traditional roofs, absorb rainwater, reduce energy costs with natural insulation, create peaceful habitat for wildlife and help lower urban air temperatures to combat the heat island effect.

This could be a good choice if you have the time to devote to upkeep.

Why roof color matters and which one is the best?

The color is really important when it comes to roofing systems, as it not only revamps the look of your home, but also affects the temperature of your attic by 20 to 40 degrees. This hugely impacts the heating or cooling cost of your home. Light colors repel heat and help keep temperatures down in hotter climates, while dark shingles retain heat and help homes stay warm in colder climates.

Many neighborhoods have building codes regarding color, so you should check with your local authorities before choosing the color of your new roof.

Why is Roof Ventilation Important?

A roof ventilation system helps remove the heat and moisture content that tends to build up under your roof. It works by providing a continual flow of air through your attic, removing overheated air and moisture, thus reducing the impact of changing temperatures both inside and outside the home.

This helps your roof and shingles last longer by preventing the rotting of the wood and curling or distortion of your shingles.

For homeowners who install a new solar panel system, the upfront cost could also be offset by the federal tax credit that may be worth as much as 26 percent of the cost of the system. Some states offer an additional tax credit for installing a solar panel system, although the amount varies significantly by state. You may also receive cash rebates from your state, municipality, utility company, or other organizations that promote solar energy. These rebates are generally available for a limited time or until a certain amount of solar has been installed.

Some states or utilities offer a program known as Performance-Based Incentives, which pays solar power system owners a per kilowatt-hour credit for the energy generated by their system. In some areas, solar power users receive Solar Renewable Energy Certificates (SRECs) for the energy they produce; these certificates can be sold for cash to electric utilities.

With all the incentives, tax credits, and rebates available, solar system owners can typically recover their investment within five to eight years. With the life span of roughly 30 years, you could easily get free electricity and extra credits for the remainder of the 25 years. It’s hard to beat that kind of return.

As a basic principle of financial planning, it is advisable to buy the life insurance policy that is right for you to help you and your family minimize financial stress should the worst happen. Here’s a brief guide to the different types of life insurance policies available in the market.

Term Life Insurance: This is the simplest form of a life insurance plan and is affordable to buy. Term life insurance lasts for a specific amount of time before it expires. In a case where the life of the insured passes away within the time period stated in the policy, the beneficiary will be paid the death benefit by the life insurance company. One should opt for a plan that provides a sum of at least 10 times the annual income, plus the home loan amount, expenses, and other liabilities. In the absence or disability of the policyholder-cum-borrower, this will help in waiving off the beneficiary’s financial liability towards the home loan and other expenses.

Whole Life Insurance: This plan, on the other hand, is a permanent form of life insurance, as it does not expire as long as you pay the premiums. It has a death benefit but also a cash value which accrues interest at a predetermined fixed rate and grows over time. With this cash value, you could borrow funds or even cash out for unplanned expenses such as home repair or temporary unemployment. Because of the cash value feature, premiums of whole life insurance are higher as compared to term plans.

Universal Life Insurance: Similar to whole life insurance, this one also falls into the category of permanent life insurance with a cash value feature. Though similar in some respects, whole life and universal life insurance have some key differences. Universal life is an adjustable form of life insurance due to the flexibility it offers in terms of premiums and death benefits. This allows the person insured to reduce or increase the death benefit and pay premiums at any time in any amount (subject to certain limits). Premiums of universal life insurance are generally higher but it’s more appealing to the customer because of its added flexibility feature.

Key Note: Each policy is unique to the insurance company and the person insured. It’s important to understand what risks your policy covers, how much it will pay your beneficiaries, and under what circumstances.

• Enough money for a down payment (at least 20% of the overall cost of the product, service, etc.)
• Additional savings
• Income totaling at least three times the amount of the total payment (which relates to your debt-to-income ratio)

With the requirements above kept in mind, here is how your credit score may affect your interest rate:

• Excellent (760–850): Your credit score will have no impact on the interest rate. You will likely be offered the lowest interest rate available.
• Very Good (700–760): Your credit score will have little to no impact on your interest rate. You will likely be offered an interest rate approximately 0.1%–0.25% higher than the lowest rate available.
• Good (660–699): Your credit score may have a small impact on your interest rate. You will likely be offered an interest rate around 0.5% higher than the lowest rate available.
• Moderate (620–660): Your credit score will certainly begin to affect your interest rate. You will likely be offered an interest rate that is approximately 1%–1.5% higher than the lowest rate available.
• Poor (580–620): Your credit score will have a great impact on interest rates. You will likely be offered an interest rate approximately 3%–5% higher than the lowest rate available.
• Very Poor (500–580): Your credit score will severely affect your interest rate. You will likely be offered a very high rate that will depend on a variety of circumstances that are taken into consideration (other debt, debt-to-income ratio, credit utilization, etc.).

While the information above is a generalized outline of credit scores and their impact on interest rates, the decision is ultimately up to the entity you are working with to make your next big purchase.

Why Does The Federal Reserve Adjust Interest Rates?

The logic behind these decisions is based on whether the Fed wants to boost the economy or slow it down so it doesn’t grow too rapidly. Lower interest rates tend to incentivize people to spend more money, which in turn helps boost economic growth during a time that the economy may be considered slow. Alternatively, when the economy appears to be growing too quickly, interest rates will likely increase to encourage people to reduce their spending. While economic growth is typically considered favorable, expanding too quickly can create additional issues for the country; this is why the Fed diligently monitors the economy and its trends.

Recent Interest Rate Cuts and What That Means For Mortgages…

Following the Fed’s recent meeting, officials decided to decrease federal interest rates for the first time in more than a decade. While this cut may end up being favorable for your home loan, the Fed’s influence over mortgage rates should be looked at in-depth, since it’s more complicated than it seems on the surface. Mortgage rates do not usually respond quickly to a federal rate adjustment. Interest rates on home loans are more closely linked to the 10-year Treasury yield, which serves as a benchmark for a 30-year, fixed-rate mortgage. Even though the Fed has little direct control over mortgage rates, these rates still react in a similar manner, usually decreasing when the economy is expected to slow down. Given that interest rates have recently decreased in an effort to boost the economy, chances are that the Treasury yield will follow and create a drop in mortgage rates. Since mortgages are already less expensive than they were just one year ago, refinancing your home may be a smart option right now—take advantage of lower interest rates while you still