Knowing When and When Not to Refinance a Mortgage

Mortgage in MinneapolisAs interest rates continue to hover at near historic lows, many homeowners across the country are taking advantage of this by refinancing. If your mortgage is much more expensive than what is offered on the market right now, it might be time to pay it off by taking out a new one. But, as attractive as the lower monthly payments might be, is this actually worth it?

Homeowners should always do the math before making significant changes to their home loan, since the actual savings may be different from what they expect – even if mortgage rates Minneapolis homeowners may get are very attractive right now. Refinancing can definitely be a huge help in some circumstances, but it’s not always good for everyone.

When Does a Refinance Make Sense?

Strictly speaking, anyone that wants to lower their monthly payment or shorten the mortgage’s duration should be interested in refinancing. But, there are a few situations where you don’t actually come out ahead financially. This is because of the hefty closing costs that accompany the process.

If you are actually interested in saving as much money as possible with the refinance, these questions should help.

  1. When do you break even? – How many years into the mortgage will it be until you effectively “break even” and have saved enough on interest to surpass what you spent on closing costs? For instance, breaking even after three years with fifteen left in the mortgage is a great deal.
  2. Will you have to move into an ARM? – It is almost never worth it to move from a fixed mortgage to an adjustable one through refinancing just to lower your rate. This is especially true now; rates are at all-time lows, so they will most likely go up in the coming years.
  3. Can you pay the costs out of pocket? – You have the option of rolling the closing costs into your new mortgage. But, this is an incredibly bad financial move, since you will be paying interest on that value for the mortgage’s lifetime. Always pay any costs out of pocket.
  4. Is a no cost refinance an option? – For those with a very high mortgage rate, lenders may be able to offer a “free” refinance, though it will not be at their best rate. This is definitely something to explore for those who cannot afford the costs of a conventional refinance.

Once you have the answers to these questions, it should be clear whether a refinance works for your unique situation.

Clean and Orderly: Check These Things before Hiring a Cleaning Company

cleaning servicesAccording to Apartment Therapy, some homeowners make cleaning the house harder than it has to be, especially when they don’t clean regularly. They can’t help it because they simply don’t have the time.

Choosing the right company for your home cleaning services is essential not only because you expect a well-done job, but also because you will be leaving your properties in the hands of the cleaners. It’s not uncommon to hear of homeowners losing valuable possessions. For your protection, here are some tips when choosing a home cleaning company:

  • Check Reputation

For starters, ask your friends or associates who they can recommend to do your house cleaning. Ask about the performance of the cleaners. Were your friends satisfied with the work? Do they trust the cleaners?

  • Check the Company History

It may be unfair to new businesses, but hiring established companies is the safer choice. With years in the industry, you see how the company grew. Elite Cleaning and other New Zealand companies with established reputations tell their story on their site. As part of checking company history, list down your options and visit their site or call their office to make inquiries.

  • Check for Insurance Coverage

Inquire if the company carries insurance coverage or bonds. This is vital since this will ensure the worker will be taken care of should they meet an accident while working. This also means you may not be liable for any incidents. And, more importantly, this will reassure you that there’s insurance to cover any theft or losses.

Getting the Best Home Cleaning Services

It’s always better to be safe than sorry. With these guidelines, you get the best home cleaning services that will give you some peace of mind, even when you’re not at home to observe their work.