You could actually pay more in total interest under a refi than you would just sticking with your original loan.
With mortgage rates near historic lows, we've been looking into refinancing our home loan. We have 24 years left on a 30-year fixed-rate mortgage at 5.625%. I called Wells Fargo and, for what's called a super conforming loan, we can refinance down to 5% for 30 years. So, should I refinance or not?
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The answer to that question generally involves calculating how much you'll save each month if you refinance your mortgage. With the monthly savings in hand, you can then divide that number into the cost of refinancing to determine how many months it will take you to recoup the cost. If you plan to stay in your home at least that long, then refinancing is worth the cost.
There are two big problems with this analysis, which we'll cover in a minute. But first, let's look at an example.
Painted designs on the glasses contain a known carcinogen.
Fast-food chain McDonald's said it is recalling about 12 million "Shrek Forever After 3D" drinking glasses because paint used on the designs contains cadmium.
Cadmium is a chemical element that is a known carcinogen. It was once a major component of nickel cadmium batteries, but its industrial uses have been phased out in recent years due to its toxicity.
The restaurant chain was selling the collectibles -- promoting the recently released "Shrek Forever After" film -- for $2. The Consumer Product Safety Commission says consumers who purchased the glasses should stop using them immediately.
You'll find free admission to national parks this weekend, plus free museums, free 'summer camp' and 'fee-free' concerts.
We don't have too many food deals this week, but we do have some tips for finding free and cheap fun.
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With some help from our friends at Cities on the Cheap, we also came up with a few more deals on entertainment:
Washington state woman left her $4.5 million estate to worthy causes. Hardly anyone knew she was wealthy.
Even among stories of people who lived frugal lives and bequeathed millions to good causes upon their demise, the life of Verna Oller of Long Beach, Wash., is truly remarkable. She was our kind of gal.
According to stories in The Seattle Times and the Chinook Observer, Oller was a committed do-it-yourselfer who embraced the simple life. She labored until age 76 in jobs like picking cranberries, shucking oysters, and working in restaurants -- waiting tables, prepping food, whatever was required.
A widow since 1964, she grew her own organic vegetables and heated her home with a woodstove -- still able to split and stack wood, too, well into her 90s -- until she moved to a retirement home in 2007.
She also researched her own investments, studying The Wall Street Journal after her lawyer had finished with his copy. Upon her death last month at age 98, 31 years after she began investing, she had an estate worth $4.5 million.
Retailers are adding programs and trying new tactics to retain your business.
Retailers are pulling out all the stops to increase membership in their loyalty programs -- but frequent shoppers may want to think twice.
Loyalty programs have historically been an easy way for retailers to collect information about shoppers' habits. Now, with consumers spending cautiously, businesses that didn't have programs are adding them to better stretch marketing dollars. Those that already have programs are increasing the ways they interact with customers.
"It's the one-on-one marketing holy grail," says Michael Gatti, executive vice president of the Retail Advertising and Marketing Association, an industry group.
For consumers, growing programs are a mixed bag.
1.7 million Maytag and other dishwashers made by the company have been recalled.
Maytag Corp. is recalling 1.7 million dishwashers because of a fire hazard, the U.S. Consumer Product Safety Commission says.
It's the largest dishwasher recall in three years.
The CPSC says consumers should stop using the appliances immediately because a faulty heating element can short-circuit and ignite.
Walking away from your agreements when you have the capacity to fulfill them is morally wrong, akin to lying.
Kelli writes in:
My husband and I are sitting on a 30-year mortgage (with 26 years left to go). We still owe $330,000 on our home. A week ago, a very similar home to ours two blocks away sold for $220,000, so we're underwater by at least $100,000. We are thinking of just walking away from this mortgage and renting an apartment for a while until our credit clears up. What do you think?
First of all, there's a strong personal moral element to this type of decision. Is it morally wrong to walk away from a mortgage?
This plan really takes no more self-discipline than you have to muster to make your loan payments.
The other day while a friend and I were chatting, the subject of buying cars came up. When I mentioned that I pay for my cars in cash, he expressed some awe: The very idea of not having to make car payments was so far outside his ken it might as well have come from Mars.
"Who can pay for a car in cash?" he wondered.
You can. I can. Anyone can.
You may not be able to pay for your present car in cash, but you can pay cash for the next one. Here's the strategy:
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