Borrowing Basics

Greetings, all you savvy sorcerers of savings! This Halloween, we’re delving into the mystical realm of financial wisdom. Just like a skilled witch wards off curses, you can shield yourself from debt spells with our magical tips. 🧙‍♀️✨  🌟 1. Potion of Responsible Credit Card Usage 🌟   Brew up a potion of knowledge and use your credit cards wisely. Keep balances low and pay them off on time to avoid falling into the grasp of high-interest debt goblins. Remember, credit cards are tools, not magic wands! 💳🔮  🌟 2. Enchanting Emergency Fund 🌟   Craft an enchanting emergency fund to protect…

As a homeowner, you possess a unique financial advantage – the ability to build and utilize the equity in your property. Home equity loans offer an affordable means to finance a wide range of expenses, including home renovations, weddings, and higher education.   Nevertheless, some homeowners are hesitant to access their home’s equity. Often, people are unsure how these loans work and their potential benefits. Others aren’t positive whether a home equity loan is the best solution for their financial needs.   Before highlighting the best ways to use home equity loans, it’s helpful to begin with the basics.  What is a…

Whenever you watch the news or read the latest headlines, someone claims that homeownership is no longer attainable due to rising interest rates. But is it true? Or is it just another thing to hype in the day’s news cycle?  While interest rates are rising because of inflation, homeownership is still achievable today. Not only that, but interest rates remain historically low and affordable. The distaste for the real estate market today stems from a decade of extremely low rates – set off by the housing crisis that began in 2007. To understand what is happening in the current market,…

Do you ever feel trapped by your finances? Maybe you have several big projects, like your home needs new flooring or your AC is on its last legs. Perhaps you opened your mailbox to find unexpected medical bills. All these projects and expenses can add up quickly, especially when they hit at once.   Luckily, if you’re a homeowner, you have a unique and powerful way to manage these costs without draining your savings. A home equity loan allows you to affordably borrow against the equity in your property – providing a slew of financial perks that shouldn’t be ignored.  What…

If you’re preparing to purchase your first home, you’re probably scratching your head more than you anticipated. Between the complex terminology and variety of home loan options, the home-buying process can quickly become confusing.   One area that first-time homebuyers struggle the most to understand is their monthly mortgage payment. Unlike a car loan, it’s not as clear-cut. And most real estate websites and financial calculators only focus on the principal and interest portion of your payment – which can be very misleading.  Before you get your hopes up and realize that the house you’ve been eyeing is out of…

One thing many first-time homebuyers are somewhat blindsided by is PMI (Private Mortgage Insurance). You may see it mentioned in some real estate advertisements, but not fully understand what it means. While PMI isn’t necessarily required for everyone, you should expect to pay it if you’re applying for a mortgage that isn’t backed by the government (FHA, VA, and USDA loans, for instance) or if your down payment is less than 20 percent of the value you’re borrowing.  Essentially PMI is protection for your lender. If you’re unable to make your payments, then the insurance helps lenders recover their losses.…