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So now that I’ve owned my home for 10+ years, I’m getting offers left and right for home equity loans. While I am doing my own research, I would be most interested to read your take on them!
Congratulations. Getting offers from lenders to borrow money most certainly means that you don’t need the money. After all, no lender will offer debt to customers who they don’t believe can make the payments. Having said that, a huge influx of cash certainly gets the juices flowing. I can put it all in the market to further my wealth. Or remodel the kitchen remodel. Or get a new car. My home equity is just sitting there doing nothing anyway. Why not take advantage?
But First, What is a Home Equity Loan?
A home equity loan is basically like a mortgage, but people only get one of these loans if they are already borrowing. That’s why these loans are often called a second mortgage. Conceptually, it’s easy for consumers to understand. Their house is already serving as collateral on a loan and they dutifully make payments. Now that their home’s value has gone up, there’s more equity and they can take money out via a second mortgage based on the increased value. [ continue reading… ]
You’d think the increased demand caused by the pandemic would have died out by now, but it seems like the problem is just getting more and more serious. The nationwide housing inventory is at a record low, and the shortage is causing a dilemma for many prospective buyers. The shortage isn’t necessarily bad. At the very least, the economy hasn’t faltered to a point where people are unable to take on a mortgage anymore. But as we’ve seen, a booming housing market can be a problem when (1) homeowners aren’t selling, and (2) there aren’t enough new-construction homes to meet the demand.
It can even create problems for sellers. That’s because sellers still need to stay somewhere after they move. My friend recently sold her house for over her asking price because she got nine offers within the first week of listing her home for sale. That turned out to be a problem. Why? Because she sold her home so quickly and her family still needs a place to live in. Originally, her plan was to find a house shortly after she sells hers but she is being outbid by cash offers left and right on her quest for her replacement home.
When she sold her home, she rushed to find an apartment and signed a three-month lease. With the extra month offered by escrow, she thought she surely would’ve been able to find a suitable replacement within four months. It’s now been five and she still hasn’t won a bidding war yet. She’s had to up her budget two times for more than six figures, and she is still getting outbid. She’s getting desperate and the stress level at her household has been high. [ continue reading… ]
I’m a huge DIY’er (or rather, my husband is), and I understand the value that comes from a job well done with your own hands and time. I am the first to admit, however, that there are some projects best left to a professional, especially when it involves quality and safety. Here are examples of projects that make more sense to be hired out, even if it means paying more for the privilege. [ continue reading… ]
An interesting offer landed in my inbox the other day from E*Trade. The email claimed that with just a few clicks, I can agree to let the firm lend out some of the shares I may own now or in the future for an estimated $671 a year in passive income. With the E*TRADE Fully Paid Lending Program, they are basically promising me free money for doing nothing different. Is this too good to be true? What is the program even about?
I did a little digging.
Securities Lending Isn’t New
Borrowing securities is as old as shorting the market itself. That’s because when you short the market (bet that the market goes down), you put up collateral to borrow shares you don’t own that track the market just so you can pay them back later. And while you are borrowing these shares, you also have to pay a borrow fee much like paying interest on a loan.
With the Fully Paid Lending Program, E*Trade is using shares that you own to lend out to other traders who want to short the security and sharing that income with you. [ continue reading… ]
The choice to have one parent stay at home with the child(ren) is a deeply personal, individual one that goes beyond finances. However, there are many reasons why it’s a good idea for stay-at-home moms and dads to seek part-time work, even if there is no immediate need for income. For instance:
1. The obvious one – extra income. Having one spouse stay at home does provide extra opportunities for saving. It’s easier to do thrifty things like cook from scratch and shop for deals when you don’t have a full-time job to contend with on top of saving money on child care. However, most families will find that there is a limit to how much they can cut their costs.
If you work part-time, even a few hundred dollars a month can significantly improve a family’s financial security. You can: [ continue reading… ]
I’ve spent a lot of time lately thinking about what I want my life to look like going forward, and what I can do to restructure. I’m in the process of reconfiguring my finances, as well as putting together a good life for my son and me.
One of the things that occurred to me is that I’d like to have a little more time. This is a common feeling of course. Most of us wish we had more time for the things that really matter to us. As I sat down and thought about this concept, I realized that there are some things I can do to get a little more time in my life. Most of those things cost money, but I think it’s probably worth the cost.
You Can’t Accumulate More Time
Time is valuable because there is no getting it back once it’s gone. I can’t just create more time the way I can earn more money. I can almost always do something different with my finances. I can invest more, raise the rates I charge for freelancing or take on a little extra work. There is usually some money available for me to earn. If all else fails, I can always sell some of my stuff or donate blood plasma.
And let’s not forget the savings side of things. There’s always some way I can spend less. If I want to, I can always keep more in my pocket.
Time is different. It’s completely irrelevant how efficiently you spend your time. Once time passes, it’s gone. In that sense, time is far more valuable so I want more of it even if I have to pay for it. The return on my investment is high — as long as I use my time in ways that benefit me for the long run. [ continue reading… ]
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