CareerFOCUS - Smart Money
Investing Long-Term? Don’t Overlook the Inflation Factor!
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A penny saved is a penny earned, right? Not necessarily. Thanks to inflation, over time, that penny could be worth less than when it was first dropped into the piggy bank. That's why if you're investing—especially for major goals years away, such as retirement—you can't afford to ignore the corrosive effect rising prices can have on the value of your assets. |
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CareerFOCUS - Smart Money
Optimizing Your Mortgage
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For most homeowners, the mortgage payment is by far their biggest monthly expense. Spending 60 seconds reviewing it can do wonders for your budget. So, let's take a look...
0:60 Are you paying PMI?
If the amount you borrowed to pay for your home was more than 80% of the appraised value of your home, you're probably paying PMI (private mortgage insurance). PMI payments are not trivial—and they aren't even tax-deductible. They effectively increase your interest rate by 32% to 92% (hey, that could be $100 a month!) depending on the size of your down payment.
0:50 Say goodbye to PMI
You can get rid of PMI by providing your lender with proof that your mortgage balance is less than 80% of your home's value. (No, an airtight alibi doesn't count.) Do what it takes to get there: Send in extra payments (clearly identified to "apply to principal") to get the loan balance down. Or, if housing values are rising in your neighborhood, get a new appraisal. Talk to your lender and see what you need to do to eliminate PMI. ...
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