Added for You - Real Estate

Starting a Carpet Cleaning Business
One of the advantages of starting a carpet cleaning business is that you don't need a lot of money to get started. You can rent the carpet cleaning equipment and use the vehicle you own to travel from job to job. You can also buy your cleaning supplies wholesale in bulk supplies. It is safe to say that you will only need around $1,000 to get started.However, you do have to do a bit of math before you get started so that you don't go overboard renting or buying the equipment and supplies that you will need. Try to estimate the number of jobs you will take on to start your business and estimate the number of carpets you anticipate cleaning. Figure out what you will charge each customer per hour or per room. If you charge by the room, figure on a minimum number of rooms that you will require before you take on the job. Also figure what you anticipate making the first year you are in business. If you anticipate an income of $40, 000, you must budget your expenses accordingly.You must also consider ways to advertise your business. Obviously, if you are trying to start out on a shoestring budget, you can't spend thousands of dollars of newspaper ads or media promotions. However, you can make flyers and place them around your community in high traffic places like supermarkets, malls and Laundromats. You can also make business cards and hand them out to family and friends who can help you spread the word. It's a known fact that word-of-mouth advertising is very effective and will produce business. You can also look for local papers that place free ads in their classified sections. There are also Internet sites that will allow you to advertise for free (or for a small fee). Before you get started, you must also check on the laws in your community that apply to starting a small business. You may be required to have a license in your area or some kind of permit. You may also need to be bonded in case of any mishaps that might occur. It might be wise to seek l

't get a return of more than $500 per year on your $8,000 investment (about 6.25%), there's no strong argument to pay for the closing costs out of pocket. Online savings accounts and CDs already offer rates equivalent to this, and the S&P 500 has been returning about double this rate, so I personally would rather have access to my money and have it working for me. I won't get into the fact that the extra $500 or so dollars of mortgage interest per year should be tax deductible as well (and please consult your CPA, we don't give tax advice).

Cost - Benefit Analysis

Finally, we can turn to the benefits of refinancing and weigh them against the costs. We are going to do this by taking a before and after hypothetical situation, with the closing costs rolled in.

Hypothetically, let's say that you want to refinance to Lower Your Monthly Payment, Change Your Loan Terms to get a fixed rate, and Take Advantage of the Equity Growth in Your Home to pay off your personal loans and credit card bills, and to improve your home to increase your quality of life. You are not planning to retire in this home, and plan on selling it in 5 years, but like the idea of a secure, fixed rate just in case rates go up a lot over the next 5 years. With the way the economy is going, you also want to keep your mortgage payment as low as possible, so in case anything happens you have the option to pay less on your mortgage.

You have a current mortgage balance of $350,000 dollars on which you pay $2250 per month, and your home is worth $600,000 dollars today compared to the $425,000 it was worth when you bought it.

You have about $32,000 in debts, on which you pay minimum payments of about $1500 a month and would like to take an additional $18,000 to do the kitchen, which you believe would improve the value of your home by $30,000.

So your total monthly spending on mortgage + cards etc. is $3750

Let's say your credit score is 620, very average for a person with your level of credit card and other unsecured debt, and you prefer to state your income.

Hypothetically (this is only meant to be illustrative), you receive a rate quote and Good Faith Estimate which outlines the following:

Quote 1: Conventional 30 Year Fixed

$400,000 Refinance Loan Amount

$8,000 in Closing Costs

---------------------------

Online Life Insurance Quotes - Important Factors To Consider When You Compare And Shop Online
The advent of the internet has made is easy to shop, compare and obtain life insurance quotes online. With just a few clicks of your computer mouse, you can access several hundreds of life insurance websites and research for the best insurance quote that suits your needs. It is very important that you educate yourself with the key aspects of life insurance companies and the policies they offer, before you get your online insurance quote and sign on the dotted line. The more informed you are on these aspects, the better your chances of getting the best online insurance quote.So, What Do You Need To Know To Get The Best Online Insurance Quotes?It is important for you to take time and effort to understand the difference between term life insurance and whole life insurance.It is also important for you to bear in mind that the cost of term insurance increases after middle age. With term life insurance, you get insurance protection for a specific period of time you would have decoded upon, after which it expires with no cash value.The main attributes of whole life insurance is level premiums, guaranteed cash values, and death protection. However, its values can be eroded by inflation, thus impacting on the cash values.There are also some important aspects you need to keep in mind if you are considering online life insurance in regards to flexible policies such as adjustable life, variable life and universal life. Basically, these policies were developed to offer more attractive growth opportunities for the policy holders. However, these types of policies bear a greater risk since neither principle nor interest are guaranteed. Variable life insurance policies are regulated at the state and federal level.It is important that you research on and well informed about your insurance policy rights such as ownership rights, conversion options, reinstatement clause and entire contract clause. You will also need to know if you

Closing Costs. Zero Closing Costs. No Out of Pocket Costs, No Points. We hear a lot about this stuff but when it comes time to refinance, do we really know what closing costs we are paying? The truth of the matter is that mortgage companies know you're fixated on closing costs. Because it's next to impossible to make an apples to apples comparison of closing costs between competing lenders, even with Good Faith Estimates, unscrupulous marketers are frequently able to get you to take your eye off the ball by promising unrealistic closing costs, while smoothly throwing a fastball and couple of sliders right past you for a strikeout. So how do we avoid being hit by the pitch? We need to evaluate the costs as they amortize into the loan, one way or another.

First, I'd like to debunk the notion of "No Closing Costs", heavily advertised by national marketers and banks. Have you ever heard the expression "There's no such thing as a Free Lunch?". All things in this world have costs to produce, and if you know anything about the companies that produce things, you'll agree that they do their darndest to make you pay for them.

Here is a list of things which are the bare minimum costs of refinancing a loan:

Title Search & Title Insurance: An inescapable fact of life, these are the costs charged by a third party company whose job it is to find out whose names are recorded in relation to the property, establish a chain of title going back 24 to 60 months, to uncover any judgments, liens, zoning issues, etc. That's the title search. Title work will also include name searches and "plat drawing". Then, based on a variety of factors, including the level of risk that they perceive from the title search and the value of the property, they underwrite Title Insurance which covers the lender in case they did not find someone or something on title which make the loan uncollectible. Like taxes, there's no way to escape this fee, however you may be able to minimize it if you can use the same company you used when you bought the house or last refinanced (look at the closing documents)
Title Search averages $300 nationally, with some markets coming in lower and some much higher
Title Insurance is Variable because there are so many factors in involved including the property's value, but the national average is about $700, although it's not unheard of for title insurance to cost as much as $3000 or more depending on the size and complexity of the property and the chain of title.
Settlement, the actual coordination of the loan closing, is often listed as an Attorney fee or Escrow Fee. This is necessary to ensure that all the paperwork is correct and that everyone who needs to get a check at closing, be it you, a service provider, your old lender, or any number of creditors you may be paying off. The average is $500, and varies again with the market.
Other title expenses may or may not be required at the discretion of the lender or title company to ensure the security of the property, including surveys, bankruptcy searches, etc. These fees again vary but you can expect your title bill to be the largest third party fees in connection with a loan.

Government Fees: Another one you can't get around is the government's fees which can be broken down into Taxes and Recording Fees, but can include more.
City/County/State Tax Stamps and Intangible or Mortgage Taxes vary so dramatically that I cannot even begin to address this issue here, but range from nothing at all to 3% or more of the property value. This is NOT the same thing as property tax.
Recording fees are the costs your county recorders office charges to file your deed, is mandatory, and range from $75 to $250 dollars.

Other Third Party Fees:

Appraisal: National Average of $350 but can be much higher depending on property size and location.

Credit Report: Averages $30

Flood / Pest / Other Inspections: Averages $100

Basic Lender Costs:
(remember, there are significant regional variations for these fees, and bigger homes carry bigger fees)

Tax Service: $75 Average

Wire Transfer: $35 Average

Processing: $400 Average

Lender Discount Points:
These are the "Points" on a loan, used to lower the interest rate to help you qualify for the loan based on your income. 1 point is 1% of the loan amount, so one a $200,000 loan a point is $2,000. You usually don't need to pay points if your debt to income ratio or DTI, the measure of all of your debt payments plus your monthly housing expenses under the new loan, are below 40%. DTI guidelines are much more stringent today than they were even 3 months ago, especially for borrowers who are stating their income to qualify for the refinance.

Fees & Profit:
Up until now, everything we have discussed has been around the hard costs of the loan. Now we get into the fee for service, where the lender or broker actually tries to make money, not unlike any other service provider such as an investment advisor, realtor or lawyer:

Origination Fees: Often charged as a percentage of the loan

Broker/Lender Fees: Again often charged as a Percentage of the loan

It's important to remember that no one can do a loan for free, no matter how good of a customer you are, because each loan is a profit or loss to the lender by itself, and they have to assume that at one point or another the loan must be sold. Their time and their risk are valuable, just as your own or your lawyer's or your realtor's.

Closing costs vary not only by location, but depend heavily on what you qualify for, so your credit will affect the final numbers, especially with regard to Discount Points. Calculating your own closing costs can be best achieved by speaking with a mortgage company who can give you a Good Faith Estimate which outlines all of the above mentioned fees.

Different Ways We Wind Up Paying For Closing Costs

Now that you've seen everything laid out, do you believe anyone can offer a "No Closing Costs" refinance? These hard costs are always paid for one of two ways:

You are billed for each item and can choose to pay them in cash at closing or to roll the costs into the new refinance so that there is no money out of pocket to you.

You are charged a higher rate than you would normally qualify for over the life of the loan, which allows the lender to realize a premium, or a profit, which they can then credit toward your closing costs. So if the best rate you qualify for, with no discounts, is 6.00%, raising the rate slightly, to 6.375% or 6.625%, may provide you with a "rebate" which the lender can choose to apply to closing costs.

Sometimes these methods are used in combination. My recommendation is to compare the payments. Let's look at two completely hypothetical examples:

Example 1: Roll Your Costs into the Loan Balance

$400,000 Refinance Loan Amount

$8,000 in Closing Costs

------------------------------------------

$408,000 Financed

At 6.000% Interest over 30 Years

Has a Monthly Payment of $2446 for Principal & Interest

And a Monthly Payment of $2040 for Interest Only

A Typical Minimum Payment Option Would be About $1500

Example 2: Use a Higher Rate to Finance Closing Costs

$400,000 Refinance Loan Amount

"$0" in Closing Costs (assuming the $8,000 in hard costs is advertised as Zero)

------------------------------------------

$400,000 Financed

At 6.625% Interest over 30 Years

Has a Monthly Payment of $2561 for Principal & Interest

And a Monthly Payment of $2208 for Interest Only

A Typical Minimum Payment Option Would be About $1465

The reason I've included Interest Only payment option figures above is to show you how much more interest you pay each month if you choose a "Zero Closing Costs" option from any leading lender, versus rolling those costs into the loan. The final option is to pay for these costs out of pocket, which is not a very popular option today, but deserves treatment.

Example 3: Pay your own closing costs

$400,000 Refinance Loan Amount

$8,000 in Closing Costs Paid out of Pocket

------------------------------------------

$400,000 Financed

At 6.000% Interest over 30 Years

Has a Monthly Payment of $2400 for Principal & Interest

And a Monthly Payment of $2000 for Interest Only

A Typical Minimum Payment Option Would be About $1465

Compared to rolling the closing costs into your loan, paying them out of pocket saves 46 dollars per month of principal and interest or 40 dollars of interest, a savings of about $500 a year or less. So unless you can't get a return of more than $500 per year on your $8,000 investment (about 6.25%), there's no strong argument to pay for the closing costs out of pocket. Online savings accounts and CDs already offer rates equivalent to this, and the S&P 500 has been returning about double this rate, so I personally would rather have access to my money and have it working for me. I won't get into the fact that the extra $500 or so dollars of mortgage interest per year should be tax deductible as well (and please consult your CPA, we don't give tax advice).

Cost - Benefit Analysis

Finally, we can turn to the benefits of refinancing and weigh them against the costs. We are going to do this by taking a before and after hypothetical situation, with the closing costs rolled in.

You have a current mortgage balance of $350,000 dollars on which you pay $2250 per month, and your home is worth $600,000 dollars today compared to the $425,000 it was worth when you bought it.

So your total monthly spending on mortgage + cards etc. is $3750

Let's say your credit score is 620, very average for a person with your level of credit card and other unsecured debt, and you prefer to state your income.

Hypothetically (this is only meant to be illustrative), you receive a rate quote and Good Faith Estimate which outlines the following:

Quote 1: Conventional 30 Year Fixed

$400,000 Refinance Loan Amount

$8,000 in Closing Costs

----------------------------

Resurrecting the Perfect Resume, Part Two
Are you in denial about the lifelessness of your resume? If you are reasonably qualified for the type of work you seek, yet your resume is consistently failing to win you interviews, then you need to face the reality that your beloved document is dead. Try these professional resume writing techniques to resurrect your resume and your job search today: Problem #3: Resume Is Blind In your eagerness to cut your job search work load have you reduced your objective statement to something grandiose and vague, something that you hope speaks to every employer but which, in fact, communicates to none? A resume with no focus is blind; without a clear focus in your resume an employer cannot perceive what you’re offering them; without a concisely stated vision in your resume an employer cannot grasp the big picture of how you fit into their organization. Solution#3: Give Your Resume Vision So Employers Can See You Craft a creative career summary statement. A career summary statement is just that - a summary or profile of your career to date. Remember that your “career” includes all the paid and unpaid things you’ve done and that even if you don’t value this experience, an employer will. Claim your career focus in your summary, then in 2-3 sentences profile your most relevant skills and experience. Describe your creative gifts in terms that relate to the employer’s needs. Whatever your specific creative gifts (and you do have them), describe them in the body of your resume. Use adjectives and nouns to describe yourself in your summary, mini job descriptions or success stories. Match your resume’s layout, font style, graphics and paper to your career goal. If you are seeking work in a conservative industry like banking or insurance, then choose a traditional layout, a formal-looking font, few

lved including the property's value, but the national average is about $700, although it's not unheard of for title insurance to cost as much as $3000 or more depending on the size and complexity of the property and the chain of title.

Settlement, the actual coordination of the loan closing, is often listed as an Attorney fee or Escrow Fee. This is necessary to ensure that all the paperwork is correct and that everyone who needs to get a check at closing, be it you, a service provider, your old lender, or any number of creditors you may be paying off. The average is $500, and varies again with the market.

Other title expenses may or may not be required at the discretion of the lender or title company to ensure the security of the property, including surveys, bankruptcy searches, etc. These fees again vary but you can expect your title bill to be the largest third party fees in connection with a loan.

Government Fees: Another one you can't get around is the government's fees which can be broken down into Taxes and Recording Fees, but can include more.

City/County/State Tax Stamps and Intangible or Mortgage Taxes vary so dramatically that I cannot even begin to address this issue here, but range from nothing at all to 3% or more of the property value. This is NOT the same thing as property tax.

Recording fees are the costs your county recorders office charges to file your deed, is mandatory, and range from $75 to $250 dollars.

Other Third Party Fees:

Appraisal: National Average of $350 but can be much higher depending on property size and location.

Credit Report: Averages $30

Flood / Pest / Other Inspections: Averages $100

Basic Lender Costs:

(remember, there are significant regional variations for these fees, and bigger homes carry bigger fees)

Tax Service: $75 Average

Wire Transfer: $35 Average

Processing: $400 Average

Lender Discount Points:

These are the "Points" on a loan, used to lower the interest rate to help you qualify for the loan based on your income. 1 point is 1% of the loan amount, so one a $200,000 loan a point is $2,000. You usually don't need to pay points if your debt to income ratio or DTI, the measure of all of your debt payments plus your monthly housing expenses under the new loan, are below 40%. DTI guidelines are much more stringent today than they were even 3 months ago, especially for borrowers who are stating their income to qualify for the refinance.

Fees & Profit:

Up until now, everything we have discussed has been around the hard costs of the loan. Now we get into the fee for service, where the lender or broker actually tries to make money, not unlike any other service provider such as an investment advisor, realtor or lawyer:

Origination Fees: Often charged as a percentage of the loan

Broker/Lender Fees: Again often charged as a Percentage of the loan

Different Ways We Wind Up Paying For Closing Costs

Now that you've seen everything laid out, do you believe anyone can offer a "No Closing Costs" refinance? These hard costs are always paid for one of two ways:

You are billed for each item and can choose to pay them in cash at closing or to roll the costs into the new refinance so that there is no money out of pocket to you.

You are charged a higher rate than you would normally qualify for over the life of the loan, which allows the lender to realize a premium, or a profit, which they can then credit toward your closing costs. So if the best rate you qualify for, with no discounts, is 6.00%, raising the rate slightly, to 6.375% or 6.625%, may provide you with a "rebate" which the lender can choose to apply to closing costs.

Sometimes these methods are used in combination. My recommendation is to compare the payments. Let's look at two completely hypothetical examples:

Example 1: Roll Your Costs into the Loan Balance

$400,000 Refinance Loan Amount

$8,000 in Closing Costs

------------------------------------------

$408,000 Financed

At 6.000% Interest over 30 Years

Has a Monthly Payment of $2446 for Principal & Interest

And a Monthly Payment of $2040 for Interest Only

A Typical Minimum Payment Option Would be About $1500

Example 2: Use a Higher Rate to Finance Closing Costs

$400,000 Refinance Loan Amount

"$0" in Closing Costs (assuming the $8,000 in hard costs is advertised as Zero)

------------------------------------------

$400,000 Financed

At 6.625% Interest over 30 Years

Has a Monthly Payment of $2561 for Principal & Interest

And a Monthly Payment of $2208 for Interest Only

A Typical Minimum Payment Option Would be About $1465

Example 3: Pay your own closing costs

$400,000 Refinance Loan Amount

$8,000 in Closing Costs Paid out of Pocket

------------------------------------------

$400,000 Financed

At 6.000% Interest over 30 Years

Has a Monthly Payment of $2400 for Principal & Interest

And a Monthly Payment of $2000 for Interest Only

A Typical Minimum Payment Option Would be About $1465

Cost - Benefit Analysis

Finally, we can turn to the benefits of refinancing and weigh them against the costs. We are going to do this by taking a before and after hypothetical situation, with the closing costs rolled in.

You have a current mortgage balance of $350,000 dollars on which you pay $2250 per month, and your home is worth $600,000 dollars today compared to the $425,000 it was worth when you bought it.

So your total monthly spending on mortgage + cards etc. is $3750

Let's say your credit score is 620, very average for a person with your level of credit card and other unsecured debt, and you prefer to state your income.

Hypothetically (this is only meant to be illustrative), you receive a rate quote and Good Faith Estimate which outlines the following:

Quote 1: Conventional 30 Year Fixed

$400,000 Refinance Loan Amount

$8,000 in Closing Costs

---------------------------

How To Use Eye Contact In A Presentation
Articles about public speaking often talk about the ‘audience’ as if it is one single entity, thinking and perceiving as one. This can make it very easy to overlook the obvious fact, that from an individual member of the audience’s perspective, we never actually present to an audience at all. In reality, we only ever speak to a collection of independently thinking individuals and that each of these people will interpret a presentation slightly differently.Each member of your audience will see and hear your presentation from their own unique perspective. Once we make this distinction, it becomes clear that we as speakers have the potential to develop a personal level of rapport with each individual. There is no doubt that any presenter that is able to build this type of connection, has the best chance of getting their message acrossOne of the most powerful ways to build rapport with members of an audience is through effective use of eye contact. To use eye contact, simply look directly at an individual member of the audience for a couple of seconds or long enough to deliver a sentence or two and then move on to someone else.Don’t dwell for too longIt’s important not to look at one person for too long as they may start to feel uncomfortable. Keep moving your eye contact from one person to another. But, ensure that you maintain contact for long enough to make a personal connection each time.Include as many people as possibleSome people advocate planning in advance roughly where they are going to look. I prefer to do this randomly as it is more natural. You certainly want to avoid the ‘tennis match’ syndrome where your eyes and head simply move from side to side as if watching the ball coming over a net and back! By moving to a new person every two seconds or so, you should you should be able to make contact with most people in a small audience of ten to twenty people at least once during a short presentation.

rate to help you qualify for the loan based on your income. 1 point is 1% of the loan amount, so one a $200,000 loan a point is $2,000. You usually don't need to pay points if your debt to income ratio or DTI, the measure of all of your debt payments plus your monthly housing expenses under the new loan, are below 40%. DTI guidelines are much more stringent today than they were even 3 months ago, especially for borrowers who are stating their income to qualify for the refinance.

Fees & Profit:

Origination Fees: Often charged as a percentage of the loan

Broker/Lender Fees: Again often charged as a Percentage of the loan

Different Ways We Wind Up Paying For Closing Costs

Now that you've seen everything laid out, do you believe anyone can offer a "No Closing Costs" refinance? These hard costs are always paid for one of two ways:

You are billed for each item and can choose to pay them in cash at closing or to roll the costs into the new refinance so that there is no money out of pocket to you.

You are charged a higher rate than you would normally qualify for over the life of the loan, which allows the lender to realize a premium, or a profit, which they can then credit toward your closing costs. So if the best rate you qualify for, with no discounts, is 6.00%, raising the rate slightly, to 6.375% or 6.625%, may provide you with a "rebate" which the lender can choose to apply to closing costs.

Sometimes these methods are used in combination. My recommendation is to compare the payments. Let's look at two completely hypothetical examples:

Example 1: Roll Your Costs into the Loan Balance

$400,000 Refinance Loan Amount

$8,000 in Closing Costs

------------------------------------------

$408,000 Financed

At 6.000% Interest over 30 Years

Has a Monthly Payment of $2446 for Principal & Interest

And a Monthly Payment of $2040 for Interest Only

A Typical Minimum Payment Option Would be About $1500

Example 2: Use a Higher Rate to Finance Closing Costs

$400,000 Refinance Loan Amount

"$0" in Closing Costs (assuming the $8,000 in hard costs is advertised as Zero)

------------------------------------------

$400,000 Financed

At 6.625% Interest over 30 Years

Has a Monthly Payment of $2561 for Principal & Interest

And a Monthly Payment of $2208 for Interest Only

A Typical Minimum Payment Option Would be About $1465

Example 3: Pay your own closing costs

$400,000 Refinance Loan Amount

$8,000 in Closing Costs Paid out of Pocket

------------------------------------------

$400,000 Financed

At 6.000% Interest over 30 Years

Has a Monthly Payment of $2400 for Principal & Interest

And a Monthly Payment of $2000 for Interest Only

A Typical Minimum Payment Option Would be About $1465

Cost - Benefit Analysis

Finally, we can turn to the benefits of refinancing and weigh them against the costs. We are going to do this by taking a before and after hypothetical situation, with the closing costs rolled in.

You have a current mortgage balance of $350,000 dollars on which you pay $2250 per month, and your home is worth $600,000 dollars today compared to the $425,000 it was worth when you bought it.

So your total monthly spending on mortgage + cards etc. is $3750

Let's say your credit score is 620, very average for a person with your level of credit card and other unsecured debt, and you prefer to state your income.

Hypothetically (this is only meant to be illustrative), you receive a rate quote and Good Faith Estimate which outlines the following:

Quote 1: Conventional 30 Year Fixed

$400,000 Refinance Loan Amount

$8,000 in Closing Costs

---------------------------

Buying a Home After Through Foreclosure
There are many reasons for foreclosure and many people have faced it. In some cases, the foreclsure was simply an issue of poor money management. In others, circumstances took over. Medical issues, layoffs and other financial problems may have made payments impossible and foreclosure inevitable. For whatever reason, the deed is done and it’s time to start taking positive steps toward recovery.Some people think that a foreclosure means they’ll never again be in a position to purchase a home. That’s not true, and there are even some steps you can take to get the process started.First, realize that you’re not alone. Thousands have faced bank foreclosures and survived. This is serious, but it is possible for you to take the next steps and move on toward eventual home ownership again.Next, you need to get copies of your credit reports to see what damage the foreclosure has done. If you had excellent credit before, you’re going to see a marked difference in your credit report after foreclosure, but don’t despair. Take time to carefully read your report. If you find errors, point those out to the credit reporting agencies that compiled the report. You’ve already got enough problems with your credit rating because of the real estate foreclosure – you can’t allow errors to stay on your report as well.Foreclosures and most other negative credit information will remain on your report for seven to ten years. But keep in mind that many creditors don’t look at individual listings on your report, especially if those are more than a year or two past. Some only look at your credit score, which is a compilation of all credit activity resulting in a numerical score. That means that some creditors may be more lenient even after foreclosure if your score is good. Concentrate on getting that score back up. Apply for one or two secured credit cards as soon as possible after the foreclosure and start making regular charges and payments. Each of those will make a po

a profit, which they can then credit toward your closing costs. So if the best rate you qualify for, with no discounts, is 6.00%, raising the rate slightly, to 6.375% or 6.625%, may provide you with a "rebate" which the lender can choose to apply to closing costs. Sometimes these methods are used in combination. My recommendation is to compare the payments. Let's look at two completely hypothetical examples:

Example 1: Roll Your Costs into the Loan Balance

$400,000 Refinance Loan Amount

$8,000 in Closing Costs

------------------------------------------

$408,000 Financed

At 6.000% Interest over 30 Years

Has a Monthly Payment of $2446 for Principal & Interest

And a Monthly Payment of $2040 for Interest Only

A Typical Minimum Payment Option Would be About $1500

Example 2: Use a Higher Rate to Finance Closing Costs

$400,000 Refinance Loan Amount

"$0" in Closing Costs (assuming the $8,000 in hard costs is advertised as Zero)

------------------------------------------

$400,000 Financed

At 6.625% Interest over 30 Years

Has a Monthly Payment of $2561 for Principal & Interest

And a Monthly Payment of $2208 for Interest Only

A Typical Minimum Payment Option Would be About $1465

Example 3: Pay your own closing costs

$400,000 Refinance Loan Amount

$8,000 in Closing Costs Paid out of Pocket

------------------------------------------

$400,000 Financed

At 6.000% Interest over 30 Years

Has a Monthly Payment of $2400 for Principal & Interest

And a Monthly Payment of $2000 for Interest Only

A Typical Minimum Payment Option Would be About $1465

Cost - Benefit Analysis

Finally, we can turn to the benefits of refinancing and weigh them against the costs. We are going to do this by taking a before and after hypothetical situation, with the closing costs rolled in.

You have a current mortgage balance of $350,000 dollars on which you pay $2250 per month, and your home is worth $600,000 dollars today compared to the $425,000 it was worth when you bought it.

So your total monthly spending on mortgage + cards etc. is $3750

Let's say your credit score is 620, very average for a person with your level of credit card and other unsecured debt, and you prefer to state your income.

Hypothetically (this is only meant to be illustrative), you receive a rate quote and Good Faith Estimate which outlines the following:

Quote 1: Conventional 30 Year Fixed

$400,000 Refinance Loan Amount

$8,000 in Closing Costs

---------------------------

Three Common Contrarian Investing Strategies
When it comes to stocks generally you will see clues that the market is changing and that there will be no better time to go against the sands of time. If you really want to reach out then learn how to make money with contrarian investing.Once you learn how to make money with contrarian investing you’ll wonder why you hadn’t tried it before. Start by watching for a reversal in the short term. The first thing you will see is a volume that is quite a bit higher than normal. When investors have beaten down a stock it will be followed by a short term reversal and that’s how to make money with contrarian investing. In fact it’s one of the best strategies.During the beginning of the first phrase there will be several aggressive traders which could cause the stock to become unstable. Soon other investors will move in and suddenly it’s all over the news hyped up to being the next thing since sliced cheese. Now is when you begin selling your stocks in this high volume high demand market. And that my friend is how to make money with contrarian investing.But wait we are not done - how to make money with contrarian investing has more options which include using the fear factor in trading. Keep your eyes open for stocks that take a sudden drop. This will be followed by investors that are very nervous trying to get out and the stocks will take another hit because the fear factor is being fed. The media isn’t helping at this point showing a real dislike for the stock. Suddenly no one wants to invest and you can make money with contrarian investing. Not much longer and you’ll be one tough investor.And the last mystery of how to make money with contrarian investing is all about the old stand by – how low can you go? The key to success here is to buy low. Some may have trouble with this idea because it is the opposite of what would be considered the wise thing. But the lower the stock goes the better for your buying and it doesn’t get any smart

Cost - Benefit Analysis

Finally, we can turn to the benefits of refinancing and weigh them against the costs. We are going to do this by taking a before and after hypothetical situation, with the closing costs rolled in.

You have a current mortgage balance of $350,000 dollars on which you pay $2250 per month, and your home is worth $600,000 dollars today compared to the $425,000 it was worth when you bought it.

So your total monthly spending on mortgage + cards etc. is $3750

Let's say your credit score is 620, very average for a person with your level of credit card and other unsecured debt, and you prefer to state your income.

Hypothetically (this is only meant to be illustrative), you receive a rate quote and Good Faith Estimate which outlines the following:

Quote 1: Conventional 30 Year Fixed

$400,000 Refinance Loan Amount

$8,000 in Closing Costs

------------------------------------------

$408,000 Financed

At 7.250% Interest over 30 Years

Has a Monthly Payment of $2783 for Principal & Interest
A Savings of $967.00 a month

Quote 2: Interest Only 30 Year Fixed

$400,000 Refinance Loan Amount

$8,000 in Closing Costs

------------------------------------------

$408,000 Financed

At 7.500% Interest over 30 Years

Has a Monthly Payment of $2550 for Interest Only
A Savings of $1200.00 a month

It seems like a no-brainer right? The interest only is much lower, however your basic housing expense has still gone up $300, even though you've paid off all the cards and saved almost 1200 there. With the credit cards, even if you experienced a loss of income due to circumstances outside of your control, at least you could have afforded to miss those payments and scratch together money to make your mortgage payment, because the credit card lates would not cause you to lose your house. But with this refinance, which meets most of your goals, now you have to come up with a larger mortgage payment. So you get one more quote for a mortgage which allows for deferred interest, or making a minimum payment when you want to:

Quote 3: 30 Year Fixed Rate Cash Flow option mortgage

$400,000 Refinance Loan Amount

$8,000 in Closing Costs

------------------------------------------

$408,000 Financed

At 7.500% Interest over 30 Years

Has a Monthly Payment of $2550 for Interest Only

Has a Minimum Payment Option of $1497

A Savings of $1200.00 a month on Interest Only
Ability to Defer Interest and Reduce your current minimum payment by over $2250.00

This is a fixed rate loan with the ability to defer interest, or a negative amortization loan, which allows you to use your remaining equity like a home equity line of credit whenever you want, with no closing costs. When you want to make a lower payment so your monthly cash flow goes further, you can do so by making the minimum payment, which borrows from your home equity to cover the difference between the interest only payment and the minimum payment. While the adjustable rate version of these loans are too risky to achieve your particular goals, a truly fixed rate cash flow option might be the answer, fulfilling all of your reasons to refinance while giving you security and flexibility for when a lower payment might be helpful.

Conclusion:
All loans costs money to originate and refinance, even if it's not always clear how you may be paying for them. As we have seen, if you aren't taking out a fixed rate cash flow option mortgage with the intent of only paying the minimum payment, most of the time it's better to roll your closing costs into your loan, so that there is no out of pocket expense to you. Always remember to see if the loan achieves your goals, and don't put too much stock in the GFE's you receive while shopping around, because people, whether broker or bank, are more than willing to lie to you to beat out their competition initially, so they can lock you into a process which you cannot easily reverse. My recommendation is to speak with as many people as you can, but evaluate them on the basis of trust. You may find that the person who gives you the highest quote may be the only one telling you the truth. This is not a simple subject to discuss, and while we have tried to treat the subject thoroughly, a consultation with a refinancing specialist would be the best way to get answers specific to your situation.

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