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Small business owner and personal finance issues

In today’s Wall Street Journal there was an article  pertaining to interest rates on homes. A quote: “mortgage rates held at historic levels this week.” “Rates on the 15-year fixed-rate mortgages were at the lowest level since Freddie Mac began tracking the mortgage in 1991.”

In recent articles, I spoke about having a budget for your business and cutting expenses where ever possible. Cash is king in today’s market place and that holds true for the business as well as the home. I am doing the “math” work with my clients and then referring them to mortgage brokers to see the savings available in  re-financing their current home. An extra two or three hundred dollars in saving that could be put aside for retirement or as an emergency cash account, will add up to a substantial  amount in a few year.

While this sounds ideal, it is, by no means an easy task to accomplish. Today, the lenders are increasing the qualification requirements for any type of a loan. I don’t see any easing up on the requirements in the near future and they may well increase the requirements making it virtually impossible to re-finance your home.

For those that qualify, we are encouraging that they apply as soon as possible. In a few cases we reached the decision to take out cash from the equity. We kept the payment the same as they now have with the current interest rate, but due to the lower  rate we ended getting additional funds. We made the decision to put the funds in a retirement account or in some cases as an emergency fund.

If you are going to live in your current home at least another 5 years than act now. If you are planning in buying a new home, please call me at 602-989-1592 to start the process.

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