I just bought my house a few years ago so refinancing won’t really help, right?

Whew. Loaded question. But, maybe!!

Here’s the deal. There’s more to refinancing than just getting better interest rates. If you were asking me this question, the first thing I would ask you is “What do you need right now?”

If your answer is you want to save money monthly, I’d say cool, let’s do it.

There are multiple ways you could save money monthly even if you just purchased your home a few years ago. At first sight, you might not see a huge difference with a slightly lower interest rate. But, it’s all about how you look at the opportunities 😊

Did your home’s value increase over the last few years? If it did like a lot of other homes across the country, you might be able to drop what’s called private mortgage insurance. Lenders include this in your monthly mortgage payment when you put down less than a 20% down-payment when you buy your house. That part of your payment doesn’t go towards paying down your mortgage balance. Ask your mortgage loan originator about that because you may be paying it when you don’t need to.

Another very snazzy trick is to look into paying off credit cards, car loans, or personal loans while you refinance. How does this help? A lot of the time, the monthly payment you’re making on those cards or loans is going to be a higher total monthly bill than your new mortgage payment will be if you pay them off in the refinance.

I love a good example. So, shall we…

Say you currently have a mortgage payment of $800 and you pay a minimum payment of $300 on your credit cards every month. But you decide to refinance and pay off your current mortgage and credit cards during the process. Your new monthly mortgage payment is now $850. So, instead of paying $1,100 a month for your mortgage and credit card payments total, you’re now just paying $850 and saving $250 a month.

Now, the haters are going to say “BuT yOu StReTcHeD oUt ThAt CrEdIt CaRd BaLaNcE oVeR tHe EnTiRe mOrTgAgE tErM”. I mean, it’s a valid point. But if you NEED an extra $250 a month for life’s essentials now, then you need that $250. That’s your priority right now. You can always adjust your plan down the road.

The point here is that you may still be able to benefit from refinancing your home even if you just purchased it. It’s worth talking with a mortgage loan originator like me to see if it could help your short-term and long-term goals.

If you’re in Indiana, Michigan, or Florida and want to see if it’d be right for you, fill out the form below and I’ll contact you to chat about the details.

You do not want to lose money just because you are unaware of the fees that your bank may charge you.

If you’re saving money or paying off debt, the last thing you want to see is a $35 fee here and $6 fee there that could have gone to your credit card or your emergency savings fund.

Here are a few fees to know, understand, and try to avoid:

Overdraft Fee – Make sure you know how your account is set up to handle your attempts to overdraw your account. Will it deny your debit card? Will it let it go through and then charge you $X of money with each transaction? Is it only on purchases you’re attempting to make with your debit card, or automatic bill payments you have set up, too?

Return Check Fee – This happens if there isn’t enough money in your account when someone goes to cash the check that you’ve written to them.

Savings Withdrawal Limit Fee – You can withdrawal money from a savings account 6 times a month before you may be charged a fee. You can thank Regulation B for this. All banks have to comply to this rule, so switching banks won’t help. Transferring from your savings to checking in your app, withdrawing at the bank, and getting money from your savings at the ATM all are considered towards this limit (along with others).

Monthly Maintenance Fees or Paper Statement Fees – You may be able to avoid monthly maintenance fees if you set up a direct deposit or have a specific amount of money in your checking account at all times. Check with your bank, and most importantly – ask them if the minimum amount is a monthly average or a number you just can’t dip below. You may be able to avoid paper statement fees by signing up for online statements.

ATM Fees – Even if your bank doesn’t charge you for ATM fees, the other bank or card you’re withdrawing funds off of might. For example, if you’re traveling and use the ATM at a different bank or a gas station, etc, you’ll most likely get a fee from that ATM AND your bank. Might not seem like $6 is a big deal, but if you have to go a few times during your week vacation that will add up quick. Also, another thing to look out for is withdrawing cash off of cards that aren’t your debt card. For example, if your tax refund is loaded onto a pre-paid card, you might get charged by the card holder and the bank/ATM withdrawing the cash off the card for you.

These fees might not seem like a TON of money on their own, but 3 overdraft fees a month can add up to over $100 that you could have used elsewhere. Moral of the story? Know your fees so you can avoid your fees.

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It seems like everywhere I look I see a graphic of a compound interest calculator telling me how much money I’d have in X amount of years if I invest X amount of dollars a month.

That’s cool. I believe in investing. Saving for retirement is important. No argument here.

BUT I’d LOVE to see some more content online to help people start building a foundation for feeling comfortable about their current money situation.

So, let’s create some.

Without going into too much depth and because I’ll be creating multiple articles about the following subjects in more detail (so make sure you’re following and don’t miss anything), let’s talk about the basics.

• YOUR CHECKING ACCOUNT + EXPENSES

When that direct deposit hits, what happens?

Do you have a plan in place to know what bills you need to pay and when?

Do you have automatic payments set up so you don’t miss any? Or a routine you’re committed to if auto payments aren’t your thing?

Do you know what you spend your money on? (Side note, I 100% believe you should spend YOUR money how YOU see fit. But the kick is do you know how you’re spending it and are you making those decisions based on planning or emotions when you’re tired or stressed.)

• YOUR SAVINGS ACCOUNT + EMERGENCY PLAN

Do you have a savings account for emergencies?

Do you have money goals that you need to set up a separate savings for and make a specific plan of how much you’re going to transfer on pay day to make sure you meet your goal? (Buy a new car, house, vacation, Christmas, or anything else you want. Hey, it’s your life and money.)

• YOUR DEBT + HOW YOU PAY IT OFF AND/OR USE IT

Do you have debt and is paying it off your number 1 priority right now? (For, example, have you created an emergency savings first so you don’t go into more debt when an emergency comes up.)

Do you have a plan on how much you’re going to pay on your debt each month?

Is your debt set up in the best way so that you’re paying less for it and accomplishing more?

If not, no worries. The really cool thing is that you can still change that and you’re in the right place to learn how.

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Everyone has their own money story. You know, the things you were taught growing up, knowingly or unknowingly, that affect the way you think about and act on money now.

LOTS of us were told “money doesn’t grow on trees” growing up. So, for me, I thought you get your job and that’s all the money you can make. The end. Do your best with it. When I started a side hustle in my mid 20’s and started consistently making more money than I thought was possible, my mind was blow. This is real?! I can make more and do more with it? It took me a while to shake that money myth, but I did.

There are many more intense and damaging money myths that can affect us in ways that we may not ever understand. You might have been told that you weren’t smart enough or worthy to deserve money or knowledge about money. Those kind of money myths can make a huge impact on your life.

Money myths are important to understand because they may prevent you from realizing and accomplishing life goals. Maybe you want to buy a house someday and you know you need to save up a down-payment. You’ve been saving here and there, but because of money myths that have affected how you feel about your ability to handle money well, you just can’t seem to save money like you want to. You self-sabotage yourself because deep down you feel like you don’t deserve the money or the house.

These are deep rooted misconceptions that we shouldn’t feel ashamed of. The best thing you can do for yourself is to be aware of the money myths that affect you and put in place an action plan to overcome them.

What does that look like? Understanding where those feelings come from is the first step. Maybe you had people in your life that taught you that because of who you are or where you came from, you don’t deserve money or the things you want. Firstly, that’s awful and untrue. Understand that those feelings have affected your money situation and the decisions you’ve made in the past, but do not have to continue to affect your decisions.

Next step, put a plan in place. For example, if you’re saving for a down-payment on a house and the issue you’re running into is that you keep taking money out of your savings account and don’t put it back in, make that more difficult for you to do. Keep a small emergency fund that you can get into ASAP,  but put the rest in an account that you don’t have instant access to. Also, every time you think you need to dip into your savings, have a set of questions to ask yourself like: Do I really need this right now? What is my plan to put the money back? Can I set up an automatic savings transfer on a specific date to ensure that I put the money back?

The bright side of money myths? They can be conquered and YOU are in control of that.

I didn’t learn how important the big picture is when it comes to money until I started digging into and understanding money needs, goals, and the numbers as a banker.

Most people don’t think about it and that’s not a crazy thing because most of us aren’t taught to growing up. It’s VERY easy to grab onto the idea that the lowest rate or cost is the best option because a low price = good, right?

I mean, maybe? What I’ve learned is that everyone, and I mean everyone, has different money goals and priorities and it’s most effective to start there.

Ask yourself, “What is my need right now? What is it that I need to accomplish now?” Maybe it’s saving an emergency fund, or paying off debt, or lowering your monthly bills to make more money available each month for the essentials.

Once you have a clear handle on that, find ways to make it happen. If you need lower bills to have more money left over each month, look into refinancing any loans you have or consolidating credit cards to lower your monthly payment.

Your dad might say, “Oh, no. Don’t stretch out your loan. You’ll just pay more in the long run.” And he isn’t wrong, but what he doesn’t realize is that you need the extra money monthly now. It’s a need. It’s necessary because you can’t find enough money monthly to pay for the essentials. Does it mean that this will always be the case? No, but it is right now and when it no longer is, you can readjust your plans according to your needs and goals then.

Side note: There is nothing wrong with this example. Don’t let anyone make you feel ashamed if you’re in this situation. You should actually be proud because you’re honest enough with yourself to be self-aware and brave enough to look for solutions.

Ask yourself those questions often and remember we all have different needs and goals. Don’t let someone else’s become your own without even realizing it.

Eeeek this sounds so serious, right? It’s just fancy terms for a simple act of combining your debts into one loan. 

Long story short, say you have 3 credit cards with $1,000 balances on each. If you consolidate that debt, you’re starting a new debt for $3,000 that will pay off each of those 3 credit cards. 

Why would you do that? There are a few reasons. The first is that it is very likely that the minimum monthly payment for each credit card added up is much more than what you would pay monthly for the new $3,000 loan that I just mentioned. Maybe you’re paying $25 for one card, $45 for another, and $60 for another for a total of $130 in payments a month. 

It’s very likely that your new loan is going to have a monthly payment less than what the three other payments add up to (in our example, $130). You can pocket the savings, or keep paying $130/mo on the new loan and pay it off faster. 

The second reason consolidating your debt might be a good idea for you is that your interest rate for the new loan might be lower than your current ones. Credit cards usually have higher interest rates than loans. They’re sometimes even 20%-30% which is why even though you make a payment every month, your balance doesn’t seem to go down as much as it feels like it should. 

You can get personal loans to consolidate debt – these are called unsecured loans. Stick with me, I promise this will be worth it. Or you can consolidate your debt into what’s called a secured loan. A secured loan means that there’s something with value backing up the loan, like a vehicle or a home. Secured loans usually have lower interest rates because the lender feels more secure giving you the cash because, well, if you don’t make your payments, they can just take the car or house. 

Real quick before we wrap this one up, why does the interest rate even matter? Because it costs you less money in the end. Sometimes other things matter more than that, like an urgent need that’s worth a higher interest rate, but if your goal is to pay off debt a lower rate can help you put more of your money towards paying off debt and not the cost of the debt.

Why are we so reluctant to talk about money? I think it’s because there are so many emotions around it that can cause conflict. Confusion, jealousy, disbelief, disgust, and so on and so on. 

So, instead of facing those emotions and working through them, we’re told from a very young age just not to talk about it. And this leads us to years and years and years into adulthood still not dealing with the issues that shape how we feel about money and what we do with our own money. 

And this is a huge problem, because you can learn as much as you can about stocks, index funds, compound interest and all the best budgeting strategies in the world, but if you can’t learn how to deal with your own emotions enough to stop you from overspending or making too many bad money decisions, all of that doesn’t matter. 

What can you start doing today? 

1. Be aware. Look at your debit and credit card activity and know what you’re spending your money on. This isn’t to make you feel guilty, but to make you realize exactly what’s going on. Take your emotions out of it as if it is someone else’s bank activity you’re looking at. 
2. Make a plan. Write down your goals and make a plan around them. Everyone’s goals are different and everyone is going to go at a different pace. Again, no emotions, just make a plan.
3. Know what to do when things are about to go left. When an emotion is triggered and you’re about to go off course, have a plan of what you’ll do instead. For example, if you’re more likely to go on a shopping spree because you’re feeling so good that it’s 80 degrees and sunny, when you get that emotional urge, go on a run or take your kids to the park instead. Just having this back up plan ready will help you be less likely to shop and then feel immediately guilty.
4. Be patient with yourself. You’re trying to break years and years of habits, you’re going to mess up. Don’t feel bad about it and continue to mess up for the rest of the week, month, year. Realize that it happened, it’s over, and it’s time to get back on track today. 

Is it as simple as a 4 point list? Heck no, but this is a start and you have to start somewhere.

Are you a first-time homebuyer who is overwhelmed by the current crazy state of the housing market? 

I don’t blame you. Buying a home for the first time can be scary, but in a market where your offer is going up against 5, 10, 20+ other offers, it can be extra intense. 

The best thing you can do is to be prepared as possible and understand that this process is going to be anything but simple. Here are a few things that I help my clients do to get prepared for buying a home for the first time:

1. Get pre-approved. I wouldn’t even suggest looking at homes online or in-person before you get pre-approved. Getting pre-approved means filling out an application with a mortgage lender to see if you would have a good chance of getting an approved mortgage if you were to find a home, make an offer, and have your offer accepted. Keep in mind that you may not get pre-approved the first time you try, and that’s okay. Knowing where you stand is the first step so you can make and execute a plan that gets you into a home when you’re ready.
2. Know what you can afford for your monthly payment. Shopping for dream homes on Zillow can be a ton of fun, but make sure you’re talking to your mortgage lender about what a $350,000 mortgage means for a monthly payment. Online calculators often do not take into account your specific situation (down payment, credit score, etc) or include homeowner’s insurance or property taxes. So, get a clear understanding of what you can afford monthly so you can shop with confidence. 
3. Know your max purchase price. This is especially important for the hot market we’re in now because a lot of buyers are going to have to offer more than what is being asked for a home’s sale price for their offer to be considered. So, if a home goes on sale for $200,000, chances are there’s going to be quite a few offers coming in and your realtor is going to suggest you offer more than $200,000 to be competitive. If $200,000 is the max amount you can afford, you might be wasting your time writing an offer and have better luck looking for homes around $180,000, so you know you can offer $200,000 if needed. 

Knowing these things can be extremely helpful, but really, just understanding that this is going to be a wild ride and it’s going to take a lot of work and patience is the best thing for you. 

It may not be easy, but believe me, buying a home for the first-time in this market can still be done 🙂