There is a mortgage strategy variously described in different corners of the internet where a mortgage is refinanced… and payments stay steady. For this strategy, a borrower is currently paying some monthly payment, and will continue to pay the exact same monthly payment after their mortgage is refinanced. The benefits are usually explained as an acceleration of mortgage payments and a “guaranteed investment return”. You may find yourself in a situation where you are considering this form of accelerated mortgage payments. Is it worth it? Let’s run the numbers and find out!
Conceptually, it’s easy to grasp why and when you should refinance your mortgage. In practice, inertia is the main reason people hold back from refinancing. With that in mind, we present these mortgage calculator which will allow you to see how your current mortgage will compare with the mortgage you are considering. Perhaps if the math is enticing, you’ll shop around? Enjoy!
Here’s an interesting move on the part of Bank of America… account holders who use their debit card at any time during a month will be expected to pony up $5.00 at the end. The fee doesn’t apply if you use your debit card at ATMs, just when you use it to make purchases. It’s just the latest of the big banks to make waves with debit card fees – and, with the fee scheduled to roll out to Bank of America account holders next year, it’s the largest of the debit card fee programs. Wells Fargo and JP Morgan Chase are also toying with the idea to tack on monthly debit card fees.
A recent article reviewed the new debt agreement as follows: “It’s like a 400-pound man boasting that he plans to drop 20 pounds over a decade, while his doctors warn about the risks of losing weight so fast.” I found that analogy grossly misinformed. It’s much more like a 400-pound man who is gaining 50 […]
… is higher than credit card debt in our country (hat tip: Wall Street Journal). How can this be?, you may ask, when the number of news stories on credit cards seem to vastly outweigh the corresponding reports on student loans. Well, yes, credit card stories seem to outnumber student loan stories by a ratio of about 15 to 1, according to StudentLoanJustice.org. How did this happen?
Like I mentioned in my article yesterday, this week ushers in the new credit card laws. On Monday, the provisions of the Credit CARD Act of 2009 took effect, to the joy of consumers everywhere. Well, not all consumers. Confused? Don’t be. The new credit laws will increase the cost of credit for people with worse credit scores.
Happy Monday morning! Did you know that today is the day that the credit card rules enacted in the Credit CARD Act of 2009 go into effect? Most likely you have seen increased communication from your credit card companies already, as they attempt to predict the effect of the rules on their profit (and change your rates preemptively). However, I would like to concentrate on one area of the credit card laws which will probably shake things up right away – the new restrictions placed on credit cards for people under 21.
Credit card issuance was down significantly in 2009. In hard numbers, through October issuance was down 46%. Simultaneously, debit card usage was up between 10 and 20% worldwide according to Visa and Mastercard’s Results. The trend is evident; consumers are moving away from debt and trying to make purchases out of funds they already have.
CNN’s Walter Updegrave fielded a question this weekend which, simply, sort of shocked me. A reader wanted to know if he and his wife should temporarily stop paying the full balance on their credit cards in order to build up an emergency fund. Is this really an option that some people are considering?