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Home Finance Loan

Home Finance Loan Rates Have Decreased Dramatically – Should You Refinance?

All individuals desire to be homeowners. It is a nice feeling living in your own home and this is the reason why people go for mortgages. In fact, a recent study established that one of the main reasons why most Americans borrow is to become homeowners. However, this is a critical decision you really need to be careful about. At all time, ensure you are dealing with licensed lenders and you can get more information about from best money lender Singapore and compare their rates online by visiting this site

Mortgages are often required to be paid for a period of up to 30 years, though some lenders offer terms exceeding this timeframe.

You will be required to make an initial deposit and monthly payments throughout the mortgage life. For this reason, it is vital to ensure that you can make the payments before signing the agreement. Remember you risk losing your home if you fail on payments. This is undesirable and you should never let it happen.

Image result for home refinance

Home Refinance

It is essential to compare loans online before making an application. Mortgage lenders have different terms and it is good to look for one perfectly match your conditions. The interest rates charged may be fixed or adjustable. How does this affect you? Well, this is the backbone of our discussion today.  When home finance Loan rates decrease dramatically, should you refinance? To effectively respond to this question, let us when it is sensible to refinance your home loan.

SHOULD YOU REFINANCE?

What does it mean to refinance a mortgage? Refinancing means settling the current loan and substitute it with another one.

The decision to refinance if motivated by many factors. The common ones include:

  1. a) Debt consolidation
  2. b) To finance a huge purchase through home equity
  3. c) To adjust the type of rate
  4. d) To lessen the term of the home loan

We will look at each of these motives. Importantly, refinancing comes with costs. In fact, it can cost 3-6% of the principal amount. For this reason, it is very important to determine if refinancing is a good decision. Let us break down the discussion into the abovementioned motives.

Refinancing to Obtain a Lower Rate

Home Finance Loan

Home Finance Loan (Refinance)

Refinancing to lower the rate charged on your current loan is one of the best decisions you can make. In general, it is wise to refinance if the move will be lessening the interest rate on the mortgage by 2% and above.

Some finance experts say even a 1% decrease is good enough to stimulate refinancing. Lessening the rate of interest helps you to save funds and that is really important. There are yet more benefits you can enjoy through this move. With a lower rate, you can upsurge the rate you are building equity in the asset and can cut the size of your payments.

Let us take a practical example here. Assume you have a mortgage of $100,000 payable within 30 years with an interest of 9%. If you do the math, you will discover the mortgage has a total interest of $804.62. In case the rate of interest is lowered to 4.5%, the total interest payment will be $506.69. Indisputably, you would have saved a lot of money. And now back to the question we raised at the outset – if Home Finance Loan Rates Decrease Dramatically – Should You Refinance? The answer is yes! Why? You can save a lot of money by doing that.

Refinancing to Convert To an either Adjustable or Fixed Rate

Generally, adjustable-rate mortgages often have lower rates compared to fixed rates. Nevertheless, with periodic adjustments, it is possible to end up with a higher rate compared to a fixed-rate mortgage. In this case, changing to a fixed-rate lessens the interest rate and relieves you from the stress that comes with volatile rates.

Home Finance Loan

Home Loan Refinance: (Refinancing to Convert To an either Adjustable or Fixed Rate)

By the same token, changing to adjustable rates is an effective and beneficial strategy where the interest rates decline.

If the rates keep decreasing, the regular adjustments may lead to lesser rates and smaller instalments, invalidating the need to refinance whenever the rates fall. Nonetheless, it would be ridiculous to do this in case the rates are increasing.

If you do not intend to live in your home for long, changing to ARM, which in many cases has lower payments, is a nice move to ponder on. If the rates are decreasing, you can lessen the interest rate on your home loan. However, you will not be plagued with worries concerning higher rates in the future since you are not going to occupy the home longer.

Refinancing to shorten the Term of the Loan

The fall in interest rates provides you with a chance to refinance the current loan to a different one which has a shorter term. It is as simple as that but it is one of the major reasons why you should consider refinancing. Shortening the term of the loan can save you a lot of money. Remember mortgages are long-term and the burden is often heavier ion the upper part of the repayment period.

Image result for home refinance

Home Finance Loan (Refinance to shorten loan term) 

Refinancing with an Aim of Consolidating Debt or Tapping Equity

It is always possible for homeowners to access the equity in the asset to fund huge costs. For instance, the cost may include home remodeling or financing college education if a child.

The fact that refinancing adds value is enough to justify their refinancing decision. Besides, the mortgage interests are always tax-deductible, yet increasing the term of the mortgage might not be a wise decision.

Home Finance Loan (Consolidating Debt) 

What is more, homeowners refinance to with a view of consolidating debt. Generally, substituting a debt with high interest with the one with lower interest is a fantastic idea. Nevertheless, financial prudence is not guaranteed in this move. Consider this option if you are quite sure you cannot overspend refinancing get rid of the debt.

It is a good idea to refinance when the interest rates on home loans are significantly decreasing. This is a move that can save you a lot of money. However, we have also considered other circumstances under which refinancing can be a fantastic idea. Be very careful with the decisions you make to ensure there is financial prudence in each one of them. Thank you.

NB: This article is a guest post from Loan Advisor Singapore.


create a trade show budget

Looking to Create a Trade Show Budget? Here’s How to Do It

Trade shows are an investment, and like most investments, this entails a ton of money. Understandably because it is a huge event. It is a time when you are able to meet potential customers that you are not normally able to meet making this also, a marketing opportunity. You can see why businesses of any size try their best to stand out among the competition because you are not the only one who has their eyes set on this event.

If you are new, one question must be ringing in your ear: What expenses does a trade potentially entail? How do I create a budget for a trade show?

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Create a Trade Show Budget: Analyzing the Costs (Image: Vispronet) 

To answer your question, there are a lot. From the very early stages of the planning phase to the aftermath of the event. Every stage requires at least some expenses to be doled out, and below are some of them.

TRADE SHOW BOOTH

Create a Trade Show Booth: The Exhibition Stands: Exhibition stand design and construction at Automechanika Frankfurt 1

Create a Trade Show Budget: Exhibition stand design and construction at Automechanika Frankfurt

This is where most of the budget goes to because this is like the business’ beacon that attracts foot traffic towards the brand. What this means is if your exhibition stands for your event in Frankfurt, for example, is not attractive enough, you will not be able to maximize the marketing potential that your trade show booth should have.

What affects your budget here is what your booth will look like. Obviously, the more complex it is the more expensive it is. Not only will it be costly to make, but it will also mean that you will be paying out more to have it shipped to you. In addition, it might also mean several deliveries and that adds up to a huge sum. 

So, avoid unnecessary extravagant design. Only incorporate those that you will optimally use.

TRAVEL AND LODGING

Travel and Lodging (Image: US Amry MWR)

Create a Trade Show Budget: Travel and Lodging (Image: US Amry MWR)

Obviously, your staff will need a place to stay, especially during the exhibit. Hotels are available, but if you really want to save cost. Maybe try a bed and breakfast. If not, a hostel. Living in an expensive hotel may be a sign of where your business stands, but having to cut down on the costs, regardless of how successful you have become is good in the long run.

Also, travel light and avoid any luxuries. Bring only those which are necessary. In addition, bring your own food which you can store in a cooler and avoid riding taxis. Might as well hire a car that can bring you back and forth to your accommodation and back.

STAFF COSTS

Create a Trade Show Budget: Planning Staff Cost

Create a Trade Show Budget: Planning Staff Cost

This could mean the staff you bring to the trade show and those who are going to be left behind. Someone should always be left behind, and your shop back in your locale should never close because that is an earning opportunity wasted if you shut down on the days you attend the trade show.

GIVEAWAYS

Plan your Giveaways

Create a Trade Show Budget: Plan your Giveaways

This includes literature you provide guests letting them know more about the company or the product that you are selling. This gives the opportunity to learn a little bit more about you and the substantive giveaways give them a reminder of your company in the future.

These three along takes the chunk of the budget that you will be spending on a trade show. We have not even included expenses for the WiFi, electricity, and maybe even carpeting which normally takes minimum share.

Final Thoughts

So, if you are planning to become a regular attendee, regularly review your expenses and explore ways to cut down on the costs. That way, you will have more to spare for the business moving forward.  Your trade show should help you get new customers, but it should not break your bank. Share your comments below if this article has helped you to create a trade show budget.

NB: This article is a Guest Post from Elabs Consulting S.L


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