To finance or not to finance. That is the question. It’s been said that all great fortune are made during war and crisis.
So, we see economies crumblig, we see whole nations going bankrupt. Where to invest. Where to make an honest profit. What will valuate in some time? So, to finance a new business or not to finance?
Difficult question. But I bet that after the recession will be over, some smart guys will be much richer then now :)
TO refinance or not to refinance? This is a dilemma.
The idea is simple. You must do calculation all the time, if you already have a loan. Because:
- conditions are changing all the time to existing loans (interest rate, commissions, etc)
- conditions are changing all the time to NEW loans
So every month you should check to see where are you standing and if it worth to make a refinancing to the present loans.
Refinancing is a simple operation. You just take a new loan, from another bank (or the existing one) in order to refinance the existing ones. Refinancing can be done together with debt consolidation (if you were a champion in taking too many loans:) )
When it pays to refinance?
- when conditions on the market changes and you end up with credits with higher interests rates
- when you need lower/higher rates to your existing loans, due various terms. Let’s say your incomes dropped due recession, and you want to cut 33% from your rate, in favor of increasing the loan duration, from 10 years to 30 years, let’s say.
At what aspects you should be careful:
- never refinance if you pay more
- calculate all the costs, not only the interest
- check also the refinancing fee. There is a possibility to go for a zero refinancing fee option, but you will pay definitely more month to month
That’s it for now. I hope this several advices will help you :)
