2010-04-22
Dear Mary: I am looking to refinance my home. I have no idea where to
begin or whether it's a good idea. Our mortgage is a 30-year fixed loan
through our credit union, and the balance is $189,177. Our annual
percentage rate is 6.25. The current APR at the credit union for a
fixed-rate 30-year mortgage is 4.8 to 5.5, with varying points and fees.
We do not have much of an emergency fund, though we are trying to build
it up. The thought of wiping it out for closing costs is not appealing
to me. I have no idea about what step to take first. — F.L., Maryland
Dear F.L.: The lower interest rate alone is not a good reason to
refinance. You need to look at the whole picture to see whether
refinancing would be financially prudent. This is not like shopping for
a pair of shoes! You need an expert who is highly knowledgeable and will
walk you through the process of evaluating what you have and what is
available.
I recommend that you read "Mind Your Own Mortgage," a new book by
Robert Bernabe, who is my friend and a mortgage expert. If every person
getting a mortgage over the past 10 years would have been required to
read this book first, we would not be in the dreadful housing market
mess we're in now. You can trust Rob to help you discover exactly what
to do and how to do it. Good luck!
Dear Mary: I don't itemize my tax deductions, so I don't benefit from
donating my gently used items to charity. Do you have ideas on how I can
sell valuable furniture and clothing for reasonable prices? The auction
house I contacted to buy my furniture gave me low estimates despite the
fact that some of my furniture is antique and in good condition. Help! —
Ivana E., e-mail
Dear Ivana: You need to sell these items yourself to get the highest
net profit. That's because when you use an auction house or agency, your
profit is reduced by a middleman's fee.
You might want to check Craigslist, where you can place classified
ads with no fees. Be realistic about what you can get for these items.
No matter how much you think they're worth, their monetary value is
determined by what someone will pay for them.
Dear Mary: How can I save money on acrylic nails? Taking them off is
horrible. It takes six months to a year to grow your own nails back. I
tried and went back to getting them filled. — J.M., e-mail
Dear J.M.: Instead of going cold turkey, have them removed by a
professional manicurist. Then continue regular manicures for a few
months. That will get you past the transition period and to a place
where you can care for your nails yourself.
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
www.DebtProofLiving.com and author of 18 books, including "Can I Pay My
Credit Card Bill With a Credit Card?" To find out more about Mary and
read her past columns, please visit the Creators Syndicate Web page at
www.creators.com.
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