Blog

If you live like no one wants today, can you really have the freedom that most of us dream about tomorrow???⁣
⁣
A lot of people are saying YES!⁣
⁣
A new movement called FIRE ????(Financial Independence Retire Early) is really gaining momentum because of its promise of early retirement!⁣
⁣
The foundation behind the FIRE approach is to keeping your expenditures as low as possible (this means very minimal personal spending), pay down all debt early, and save/invest every dollar not spent so that you retire as soon as possible!⁣
⁣
Is this practical? I say, MAYBE⁣… What do you think?
⁣
I break down this strategy in today’s Money Tip! All the pros, cons, and what you will really need to consider if you you take this approach to finances!

As always, if you have any questions, or a topic you want to hear about, be sure to comment, email or call. We’re always here to help!!

Lizy

If you listen to the news when they talk about real estate you probably have heard phrases like “historically low”, “rates are expected to rise”, and words like “inflation” and “bottom”. It is hard to know when it’s the right time to purchase or refinance since the news is often conflicting depending on who you listen to you.

When most banks advertise historically low pricing, they are using data up to 40 years old, and typically only talking about 30 year mortgages. While it is true that rates are low, if you are reviewing just the past 5 years you would see that rates have actually risen since hitting the bottom in early 2016. At their lowest level to date, a 30 year mortgage was at 3.25%. Today, 30 year pricing rests somewhere between 4-4.5% depending on market fluctuations. It can be confusing, and I break this down in today’s Money Tip!

It is important to me that you understand that most of what you read and see is marketing language or sensationalized “news”. There are many credible resources like Mortgage News Daily and the Freddie Mac interest survey that will give you real interest rate information to help you make an informed decision.

My team is always happy to help answer any and all of your questions as well as work up additional mortgage scenarios, so please do not hesitate to reach out to us!

As always I look forward to hearing from you and hope you have an exceptional week!

Lizy

Why is my “annual percentage rate” (aka APR) higher than my interest rate?⁣⁣⁣
⁣⁣⁣
This is a frequent question I get asked during the mortgage process, and the answer to this is rather confusing! ⁣⁣⁣
⁣⁣⁣
The confusion starts with the name Annual Percentage Rate… it implies that this is the “interest” percentage that you pay annually for your house, your car, your boat, (your fill in the blank if it’s financed)… ⁣⁣⁣
⁣⁣⁣
While that is true to some extent, it does not explain that your APR includes way more than just interest. It includes ANY fees associated with obtaining financing. Which is why your APR is typically higher than your “locked in rate”!⁣⁣⁣
⁣⁣⁣
I break this down in more detail along with why financial gurus emphasize knowing this figure on today’s Money Tip! ⁣⁣⁣
⁣⁣⁣
I would love to answer your finance questions! Let me know below if there is a topic you want us to break down in a future MTM! ⁣⁣

Thank you for tuning in!!!

Lizy

I know we’ve talked about mindset before (if you missed that one, check it out here) but I think it’s worth another look at how limiting beliefs can actually cost you money. I know that sounds crazy, but it’s absolutely true. It’s amazing how shifting your mindset can change your life in SO many ways, especially when it comes to money!

Remember the old adage, “If you don’t ask, you don’t receive”? Well that’s true when it comes to savings too. There are tons of ways you can ask for savings… sometimes it’s as simple as clipping those coupons, sometimes it’s as easy as asking for a better interest rate on a credit card, or even seeing if your bank offers free checking. The point is, if you don’t ask for it, they’re not going to give it to you! I know, asking for anything having to do with money can be uncomfortable for some of us. I was DEFINITELY one of those people. But once I saw how asking for these things helped to save my hard earned dollars, I started making a habit of doing my research, seeing if better options were available, looking for better interest rates, and always asking for savings. It might only be a few dollars here and there to start, but those dollars add up over time. I truly hope that if you’ve learned anything from these money tip videos, it’s that consistent small actions over time lead to big results in long run. So stop leaving money on the table, and don’t be afraid to ask for savings!

Make it a great week!
Lizy