Wednesday, January 23, 2013

The Real Cost of Home Ownership

Most of us usually think of the cost of home ownership is how much we pay for the house. If we are lucky,we do not have to pay interest on the mortgage.But for the majority of home owners like myself,we have to pay monthly interest on our home loans.We also need to look at the cost of the home inspector and lawyer that help us purchase the house.The cost of applying for the mortgage and interest payments adds to the cost of housing.There is also real estate taxes that we must pay to our community.Add these fees together and we have a basic monthly amount that are our expences. However ther are ongoing costs to help main the house.These costs include,heat,insurance maintance remodeling,replacing roofs,appliances and landscaping the house.It is important to know these costs in order to know the true cost of owning and operating a house. Some of us can reduce heating/electric costs if we insulate our homes or have high efficiency heating systems. Depending on income,we might be able to reduce our income tax by deducting our interest payments. In the long run,all of the expences need to be considered when looking at the true cost of housing

Tuesday, January 8, 2013

Use of Credit Cards

The use of credit has been on the rise over the last few years. Between car loans and mortgages,people are using credit cards more often than using cash for purchases. These purchases are for mundane needs such as grocery shopping,gas to lunch and routine needs. Credit card bills can easily mount due to planned purchases,holiday gifts or unexpected needs.It is important to keep receipts of all credit card purchases,review your bill once you receive it and challange any purchases that you feel are not correct. Also think about paying the balance at the end of each billing cycle.The interest rates on unpaid credit card balances are very high and not having to pay interest on the cards can free up money for other needs. Also contact for your free annual copy of your credit reports. Carefully review the reports form all three reporting services. If they are not correct,contact the reporting agency and challange the part that you feel is not correct.Having a correct credit report can make a difference in being approved for a loan or credit card.