Recently
What You Need To Know if Your Bank Fails
If it seems that more banks are closing this year than normal, you are absolutely right. Since January 2009, 106 banks and 19 credit unions have failed in the U.S. That's more than four times the number of closings in 2008. It's the most since the …Read more.
Make Your Own Sanitizing Wipes
Dear Mary: I would like to find a recipe to make hand sanitizer and sanitizing wipes. Do you know of one? — Delores, e-mail
Dear Delores: I have been thinking about the same thing, now that we're learning that products like Purell are …Read more.
7 Simple Ways To Stretch Food Further
Buying groceries on sale and cooking meals at home are excellent ways to keep the cost of food under control, but there are other things we can do. Here, for your enjoyment, are simple ways other "Everyday Cheapskate" readers make food and …Read more.
Why You Can't Afford Credit Card Debt
Last year, the Federal Reserve Board announced new rules for banks that issue credit cards. The rules will remove unfair credit card practices. Months later, Congress passed into law the new Credit Card Accountability, Responsibility and Disclosure …Read more.
more articles
|
Keep the Dream, but Be Smart About Paying for ItDear Mary: We have been paying on a beautiful piece of property that has a creek running through it. We hope it will be the site of our future retirement home. We got a five-year loan on it, and a balloon payment is due soon. We don't know what to do. We can't get a fixed-rate mortgage on it because it is vacant. Is this just our bank's policy, or is this typical? The bank has explained that our options are: 1. Put a house on the property, and then rent it. 2. Refinance the house that we live in to include enough to pay off the vacant property, which would be $31,000. 3. Take out another five-year loan with a balloon payment, at a higher rate than our current loan. 4. Open a home equity credit line against our primary residence to pay the balloon payment. If we do this, the new payment on our home would be equal to the two payments we are making now. 5. Sell the property. Will you please advise us? -- Chris A., e-mail
Dear Chris: With the limited information I have, my advice is for you to exercise option No. 4: Use equity in your home to pay off the land. Here's my reasoning: Your total debt would remain secured (as opposed to unsecured debt, which is very dangerous for your wealth). You simply would transfer the portion secured by the land to your home. Using figures you included with your letter (which I chose not to include herein), your total new payment on the house ($1,005) would be just about the same as what you are paying now on your home mortgage and the land payment combined, or 25 percent of your net income. Dear Mary: I was so proud of myself; I made your biscuits today! As I cut out the last one and laid it on the baking sheet, I realized I had forgotten to add the baking powder and salt to my all-purpose flour. I feel sick over the time and ingredients I have wasted. My biscuits are in the freezer. Is there any hope for them? -- Sarah G., e-mail Dear Sarah: Without leavening (something to make them rise), your biscuits will come out of the oven exactly the same height they are at this moment. They will be dense and hard as rocks. Do your kids play hockey? They will make dandy pucks. If not, I'd toss them now and consider that a small price for an important lesson learned. Do you have a question for Mary? E-mail her at mary@everydaycheapskate.com, or write to Everyday Cheapskate, P.O. Box 2135, Paramount, CA 90723. Mary Hunt is the founder of DebtProofLiving.com and author of 17 books, including "Debt-Proof Living." To find out more about Mary and read her past columns, please visit the Creators Syndicate Web page at www.creators.com.
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
