Could I flip a house?

If you are considering flipping a house, whether you enjoy working on houses, want to earn profit, or any other reason, this article offers insightful advice: How House Flipping Works. 

Top Ten Things to Do Before Retiring

Retiring soon?  Here are some tips from Ric Edelman's "Top Ten Things to Do Before Retiring" from Inside Personal Finance:

Here’s what to do now if retirement is on your horizon.

1. Decide how you are going to spend your time. What are you going to do during the first 6 to 12 months in retirement, and what do you plan to do for the rest of your retired life?

2. Determine (realistically) how much money you will spend monthly. Remember to include periodic expenditures such as gifts, vacations, taxes, an occasional new car, and emergencies.

3. Anticipate the cost of health care. You’ll have no employer to pay this for you; Medicare, MediGap, and private insurance are all up to you.

4. Buy long-term care insurance. Now.

5. Refinance your mortgage. Many people are shocked to discover that they either cannot borrow money after they retire, or they are forced to pay higher rates.

6. Boost your cash reserves. Make sure your rainy day fund is enough to cover at least six months’ worth of expenses.

7. Evaluate your sources of income. You have already figured out what you’ll spend on a monthly basis. Now figure out where that money will come from.

8. Revise your investment strategy. The way you’ve handled your investments over the past 30 years is not how you should handle them for the next 30. While preparing for retirement, you were focused on asset accumulation. When you’re in retirement, you need to focus on income and on keeping pace with the increasing cost of living. Assets must be flexible and liquid so you can meet needs you did not anticipate. New words will enter your vocabulary: rollovers and lump sums.

9. Review your estate plan. Review your will and trust. Don’t have them? Get them. These documents can protect you and your assets while you are alive and benefit your spouse and children when you pass on.

10. Perhaps the most important thing of all. If you are not excited about retirement, then don’t. Many people quickly become bored after retiring. It’s OK -- even exciting -- to return to school or the workplace. Many do this, often in completely new fields.

10 Dumbest Money Moves

Ever made a big mistake with your money?  Lots of us have.  In a recent article called "My 10 Dumbest Money Moves - And How You Can Avoid Them," Stacy Johnson of MoneyTalkNews discusses ten frequently-made money mistakes and what you can do to avoid making them.  The ten mistakes he describes include:

1) Not having a goal.
2) Not having a spending plan.
3) Attempting to derive self-esteem from possessions.
4) Doing what everyone else is doing.
5) Starting to save large and late rather than small and soon.
6) Paying interest to buy things that drop in value.
7) Turning down free money.
8) Buying a new car.
9) Buying more house than you need or can afford.
10) Not protecting your good credit.

To read the full article, click here.

Time to refinance?

Dan Danford, CFP® and Founder/Chief Executive Officer of Family Investment Center, answers this week's episode of Money Made Easy.

With interest rates so low is now a good time to refinance or are there disadvantages to refinancing?

Danford addresses the costs associated with refinancing (new appraisal, new title company, etc.) but says this is the best time to refinance in the last 50 years. He explains why everyone should consider refinancing not only their marital home but also their credit cards and vehicles.

Dad’s Divorce: Mortgage Loans Being Sold

Dan is a weekly contributor to Dad's Divorce, a website for men going through the divorce process. The site may be been designed for men, but the advice usually can apply to anyone. In this week's edition of Money Made Easy, host Dan Danford answers this financial question from a viewer: I bought a house a couple of months ago and it seems like every other week I get a letter saying my mortgage has been sold again. Can you explain why mortgages are constantly being sold?

Danford, MBA, CRSP of Family Investment Center, explains the financial reasoning behind buying and selling loans.

Dad's Divorce: Home Closing Costs

Dan Danford regularly provides commentary for Dad's Divorce.com, a web site for men going through the divorce process. In this week's edition of Money Made Easy, host Dan Danford answers this financial question from a viewer: What closing costs should I anticipate in purchasing a marital home?

Danford, MBA, CRSP of Family Investment Center, explains the confusing process of home-buying and what you can expect to pay at closing.

Dad's Divorce: co-borrowing

Every week, Dan Danford provides advice to men going through the divorce process on Dad's Divorce.com. The advice, though, applies in most situations. You can watch his latest podcast below.

This week's question from a viewer: My girlfriend will be living with me paying me a small part of the rent for my new home in cash each month. So will she be considered a co-borrower and thus have her credit score reviewed?

Dad's Divorce: When to refinance

Dan Danford regularly provides commentary for Dad's Divorce.com, a web site geared toward men going through divorce - but the advice applies to anyone. This week, he answers a question about when to refinance the marital home. Got a question of your own? Leave it in the comments section.

Mortgage lending has changed

By Robyn Davis Sekula

It would seem that this is an ideal time to buy a home. There's plenty of inventory, and many sellers are willing to deal - especially if their home has been on the market for quite a while.

However, lending terms have changed - DRASTICALLY. Here's a great overview of the six ways that lending has changed for mortgages on investopedia.com. It's recommended reading for anyone who is thinking of buying a home.

http://financialedge.investopedia.com/financial-edge/0510/6-New-Hurdles-For-Home-Financing.aspx

It's time to talk to your banker

By Dan Danford
Family Investment Center

So when was the last time you refinanced your home?

If you plan to stay in your home a few more years, and if it's been a while since you refinanced, it's time to talk to your banker. Interest rates are dropping on traditional mortgages and you may find that you can save a significant amount of money or lower your monthly payment by refinancing.

Talk to more than one financial institution and see what they have to offer. Don't get stuck on one bank, either, because many sell their mortgages anyway and it won't make much difference who you originate the loan with.

Here's the latest from Bloomberg News on the interest rate drop.

http://www.bloomberg.com/apps/news?pid=20601214&sid=arOOSO1.2Wu4

Re-negotiate debt for long-term gain

More than anything else I do, I love to answer questions from folks I meet in person and online. This is a question from a reader, and we'd love to start doing this more. If you have a question, leave it in the comments section and I’ll post response here. Keep the questions coming!

Question from a reader:
I have a loan against my minivan for about $9,000. I also have a home mortgage and a second mortgage. The car loan is at 9 percent, and the second mortgage is at about 7 percent. We do not have any credit card debt. We save for our kids’ college funds and for our own retirement at modest but not aggressive rates.
I am self-employed, and my husband works for a non-profit. Both of us feel secure in our employment and income, but we also are aware that many, many people who thought they were secure are now unemployed. We want to take our extra income and pay off debt as well as save. In what order should we proceed with the following three objectives:
1. Create a savings fund of three to six months of expenses.
2. Pay off our minivan.
3. Pay off the second mortgage.

Answer from Dan Danford
Actually, this is an interesting family finance query. In the scheme of things, none of this debt is "really bad" debt. It's pretty hard to live today without borrowing for houses and cars, so the pertinent question for most people is how to arrange the best terms and conditions. Generally, you'd eliminate the highest-cost debts first, so pay off the car loan. I'm not keen on paying off mortgage debt for multiple reasons, but especially not if you sacrifice retirement savings to do so (the Chicago Federal Reserve Bank released a study on this very subject last year). My first question for your situation is this: can you refinance your mortgage(s) at today's low rates? If you can, it's possible that you could combine all three of these loans into a single mortgage at 5 percent or less.
Some might find this an odd recommendation from a financial advisor, but your income stability and lack of (really bad) credit card debt makes it feasible. And, if you can secure a loan at 5 percent or less, why be in a hurry to pay it off? Your retirement or college savings will likely grow at higher rates for the entire mortgage term, so why move money from higher rates to pay off lower ones? Really, having good income and credit creates the flexibility to secure good terms and conditions. Use it to good benefit for your family.