Category: Saving Money

Buying Still Cheaper Than Renting

Even in light of rising home prices, Trulia‘s October 2016 “Rent vs. Buy Report” successfully argues that owning your home with a conventional 30-year fixed rate mortgage costs less than renting in major US metros, even in high priced areas like Honolulu, HI (which sees 17.4% cost reduction over renting). The highest difference was 53.2% in Miami, FL and West Palm Beach, FL.

Nationally, the average was an impressive 37.7% cost reduction.

It’s a Game of Pace

Even while home prices are appreciating nation-wide, interest rates have remained so low that the pricing increase has not approached matching rental inflation. In fact,

Prices would have to appreciate 23% in Honolulu, HI, to over 45% in Ventura County, CA before renting, at current rates, becomes less expensive than buying. On the other side, rates would have to approach 9.1%, which would be a 145% increase over the current average of 3.7%, for renting to be financially more attractive than buying. (We have not seen rates like those since January 1995, according to Freddie Mac)

Consider also the Family Wealth aspect of home ownership, coupled with ownership being closely tied to the American Dream, and the reduced out-of-pocket cost of owning over renting, and it might make one wonder if the benefits of renting are really worth it.

The Takeaway

The numbers are clear. It makes good financial sense to be a homeowner. Let’s not forget the slice of the American Dream that comes with it! If you are interested in taking advantage of the benefits of home ownership, but aren’t sure where to start, call or contact me today! contact your Benchmark mortgage consultant today. Find Your Branch here: Get Started Now!

Low Housing Inventory Driving Values Up

by I Am Benchmark

Many people may have been watching home values steadily rise over the past year, and notice that it isn’t slowing down.

Another Housing Bubble?

Is this the aftershocks of 2008? Has sub-prime lending made a comeback as the Federal Reserve has hesitated to raise interest rates? Are new homeowners soon to be upside down on their young mortgages? No. Some have speculated it. Don’t believe it.

Purely Supply and Demand

After the bubble crash 8 years go, demand dropped first, then supply followed. In the market’s rebound correction (that we are still in the middle of), demand is driving the housing market once again.

In this case, demand growth is outpacing the housing supply. The result? More people want the housing that is available, and the competition drives up market value.

While this does make it a difficult time to buy, it may also be a terrific time to sell!

What’s A New Buyer To Do?

When prices are going up, and are projected to continue to increase, it is good to remember that interest levels are still low. This is when it makes sense to consider the true cost of waiting.

True Cost of Waiting

Consider this:

If you were to buy a house right now, with a $250,000 mortgage at 3.68%APR interest, your Payment (P&I) would be $1,147.88

If you were to buy the same house Between January and March (estimate) in 2017, your same mortgage would be $263,750 at (estimated) 4.5%APR interest. Your Payment (P&I) would be $1,336.38

By buying now, your net worth would automatically increase by $13,750 (not including the principle payments that you would be making to shrink the balance/increase your equity)

The difference in monthly payment would be $188.50. Can you afford an extra $188/month in exchange for… uh… well… …hesitation?

Over the course of 30 years, you would end up paying $67,860 more as a result. What could you do with an extra $68k?

Lock It In, And Watch It Climb

The general convention, as we have mentioned before, is to buy as early as you can. You may be better off in terms of both equity and housing costs.

Ready to get started? Give us a call!

Top 10 Tips To Save Water This Summer

by Benchmark

With the warm summer weather comes an increase in activities around your home, outside and inside, that use water. Here are 10 tips for smart water usage.

Check Your Connections

1. Check hose connections and outdoor faucets for leaks. Replace or adjust them as soon as you notice a leak. Also watch lengths of hose when water is running through them for holes or other damage.

Strategically Schedule Your Water

2. Be strategic by scheduling when you water lawns, gardens and flower beds. Watering before the heat of the day means less water is lost to evaporation. A regular watering schedule also keep plants and lawns from drying out and becoming stressed, which in turn leads to the need to water more.

Regularly Adjust Your Sprinklers

4. Stay pointed in the right direction. Regularly adjust the direction of your sprinklers to make sure you aren’t watering the sidewalk or driveway.

Make A Clean Sweep

5. Use a broom on driveways and walkways as a first step to cleaning them. Use the hose as the second step.

Maintain Your Pool

6. Don’t let your pool make an unwanted splash on your water bill. If you have a pool, make sure it is regularly maintained and thoroughly checked for leaks.

Use A Rain Barrel

7. Set up a rain barrel. Then use water collected to water trees, shrubs and flowers. In a similar vein, see if downspouts can be directed to deliver water to certain areas that need it such as lawns or garden beds.

Fill Your Appliances

8. Appliances are most efficient when full. Wait until there is a full load to run the dishwasher or washing machine.

Inspect Your Appliance

9. Inspect other appliances that use water to make sure they are performing in an optimum way. Don’t forget your evaporative cooler or hot water heater.

Don’t Wait For The Tap To Get Cold

10. Keep a container of drinking water in the refrigerator instead of letting tap water run to get cold for drinking. This has the added benefit of giving you a cool drink instantly.

Saving a drop here and a drop there really makes a difference when it comes to water usage. What looks like a small amount of wasted water adds up quickly when it happens every day or all summer long. In a similar way making what seems like a small step now will help keep your home green. Then you can enjoy summer the way it was meant to be.

4 Tips To Go Camping With Your Family On A Shoestring Budget

by bmadmin

Camping vacations have been a popular choice for families for many years. Family budgets are often tight, so camping is sometimes the only affordable means to get away on vacation for a reasonable amount of money. However, it is still not free.

If you have a limited vacation budget, but you would still like to take the family on a nice camping trip, there are several ways to cut costs.

Borrow From Friends or Family

If you have friends and family who like to go camping a lot, chances are you can borrow some of their items for your trip. Unless you go camping all the time, there really is little reason to buy a lot of camping equipment. Most people are more than willing to loan their camping stuff so it gets used regularly, keeping it from molding or rusting.

Take advantage of the generosity of your camping relatives and friends by borrowing things like canteens, water jugs, camp stoves, lanterns, coolers, coffee maker, griddle, heater, and even camping dishes and cutlery. Of course, you’ll want to borrow the tents, as well as sleeping mattresses and sleeping bags, if possible. However, for a small investment, you can buy your own sleeping bags, pillows, and extra bedding just so you have your own personal items.

Buy Second Hand Items

Walk into any quality second hand store and you’ll find piles of gently used camping equipment. That’s because there are always people who make the mistake of thinking they’re going to devote their vacation time to the camping experience, buy all new equipment, and find out they should have borrowed or bought second hand before they splurged. With that said, you can take advantage of these hasty decisions by buying camping gear for next to nothing.

Visit yard sales and flea markets, too, for gear that is practically free for the asking. Tents may need to be aired out and scrubbed well, but a little elbow-grease goes a long way toward the cost of a brand new tent. Used sleeping bags may not be as appealing as other equipment, but consider buying used sleeping bags for extra padding underneath your air mattresses, or for sitting around the campfire. A little diluted bleach goes a long way to sprucing up, freshening up, and getting the mold and mildew out of used gear.

Find Gear and Campsite Deals Online

Not only can you find specialized second hand camping sites like The Outdoor Gear Exchange or Outdoor Online, you can also hit up the classifieds like Craigslist, FreeSell, and Kijiji for some great local deals. Keep in mind that shopping online can involve shipping if you are not shopping locally. Do the math before you make your decision.

Of course, besides the camping gear and supplies, you’ll need to plan out where you will be staying. Your shoestring vacation budget might not allow for a trip to Yosemite, but you can find many fine parks that offer great deals right along with their magnificent vistas.

Search county, state, and national park websites to find campsites near you, as well as any special deals. Many of these parks offer free camping promotions once each year. You’ll find campgrounds that offer shower facilities, boating equipment, fishing, and even classes in snorkeling or other summer sports.

You might want to visit sites like Boondocking.org or FreeCampsites.net and others like them that give you resources for finding places to camp free. Campers also love to share their favorite finds in websites and forums. Search around the internet and start clicking on interesting looking sites, but always check the authenticity of a free campsite by calling the local tourist bureau.

Plan Your Camp Cuisine

As far as food choices go, camping calls for easy meals, but there is a wide variety of food to consider. Stocking coolers with sandwiches, fruit, and drinks may be your idea of the perfect camping experience. Or, you may want to have the makings ready so you can throw together a nice meal.

Your decision may depend on the equipment and cooking setup you have available. If you are using a camp stove, you can make just about anything you want as long as it can be cooked in a pot or skillet. Of course, the size of the stove and the amount of propane will limit your menu, but just be creative. You can make everything from soup to fried potatoes to hamburgers and steak on a camp stove, so long as you bring the necessary pots and pans.

Then there are the campfires and grills. If you are fortunate enough to have a campsite with either, or both, your cooking experience could include a whole repertoire of goodies. It will all depend on how much time you want to spend cooking, and the availability of food. Planning ahead is the key to success.

Cleaning up may not be easy, so that may help determine the types of meals you make. To avoid a mess, try making all-in-one meals in heavy duty foil for the grill. A foil bundle hot off the grill filled with potatoes, ham, and onions is a nice treat after a busy day hiking or boating. Kids always enjoy hotdogs over a campfire. Plan each meal in advance and you won’t go wrong.

And, don’t forget dessert! Marshmallows roasted over an open fire are a delight for all ages, and they are extremely cheap. Expand on that theme with something as simple as graham crackers and chocolate bars and you have the perfect camping dessert – S’mores. Who needs a fancy dessert cart?

Taking the family camping is a learning experience. Each year, you’ll figure out how to do things better, and cheaper. Start small, and if it turns out you are in love with ‘roughing it’ then go ahead and branch out. Keep the frugal camping basics in mind, and enjoy the great outdoors.

7 Personal Finance Questions Most People Can’t Answer

by bmadmin

I’ve come to realize that a vast majority of us share the same goal in life. We want to commit, work, face and take responsibility for as little as possible, yet still be comfortable. In schools today, the child that makes B’s and C’s with little or no effort is met with more admiration than the child who devotes hours to their task to receive an A. Although in school one can make an argument that it is overall better to be “well rounded”, when it comes to life and especially to finances only those who are committed reach the highest levels of success.

People Aren’t Lazy, They Are Simply Uninspired

During my nearly two decades in business, I have observed people at virtually every stage of commitment and I have seen many climb through the various stages. Initially most people hesitate for a variety of reasons to really put forth a full effort. Sometimes it is because they are afraid of failure and can use the lackluster effort as their excuse. Other times it is because of a lack of confidence or understanding and sometimes it is simply because they don’t want to exert themselves. I used to refer to them as lazy but now I truly believe there is no such thing as a lazy person. It’s true. I’ve seen people who everyone would agree is very lazy, get up at 4am and hike miles into the woods to a location that they had scouted out weeks and months in advance simply to try to kill a deer that they will then have to cut up into smaller pieces and carry back out. That is commitment. People aren’t lazy, they are simply uninspired. You need to know what inspires you.

I am beginning to understand that the most important role I play is in helping people comprehend what it actually takes to achieve the level of success that they say they wish to achieve. For example, my 11 year old son wants to grow up and become the greatest golfer to ever play the game. To him, this will be measured by beating Jack Nicklaus and Tiger Woods for number of tournaments and major tournaments won professionally. I would never discourage any of my children from trying to reach an honorable goal, but in this case we must all admit this is a monumental task. Would it be fair to my son if I didn’t explain to him that if he really wants to achieve his goal, he will have to devote a majority of his time every day from now until he is 45 years old to improving his golf game? It will alter what he eats on a daily basis, how he exercises, who he is friends with, his grades, and virtually every other aspect of his life. At work, it is very similar. You must first determine what a person’s goal is and then help them develop a REAL understanding of what it will take for them to get there.

Why Are We Like This?

Probably the biggest observation I’ve had during my career is exactly how little time and effort people invest into their personal finances. Most of us go through life driving from home to work and hoping that the direct deposit is enough to pay the bills or “make ends meet”. We don’t really think much about savings or investments other than to do what everyone else does at work by contributing a small percentage to our retirement plan. When it comes to borrowing money, we are even worse. We simply search the internet and make a few calls and usually select a person with less financial experience than we have to advise us on how we should structure financing our new home. Why are we like this? Is it because it might be painful to face where we stand? If that’s the case, trust me, it will be a lot more painful down the road when you are forced to face it.

Properly managing your personal finances is almost exactly like growing your business and reaching any other goal. It doesn’t take that much more time or energy. It simply takes a consistent effort and a little focus. Take the time to review the basics.

Ask Yourself the Following Questions:

How much life insurance do I need?
How much do I spend each week?
How much do I take home each week?
Do I have the right kind of auto and home insurance?
What would happen if I were in an accident and injured someone else?
What would happen to my family if something happened to me?
What will my income and lifestyle be like when I retire?

These questions are so basic yet the truth is very few of you know the answers to them. If you are in your 20’s or older and have started your career, it is critical that you get a game plan for your personal finances and that you do it sooner rather than later.

As I stated earlier, I am beginning to understand that the most important role I play is in helping people comprehend what it actually takes to achieve the level of success that they say they wish to achieve. Virtually every day I meet with a client and ask them what their plans are financially for their home, family and finances. Helping them figure out the best interest rate option is easy. The real value comes in helping them figure out what they want financially and creating a game plan to get it. If you don’t have one, please get with someone and figure it out. It will help you and your family tremendously and I’m personally convinced it will go a long way toward bringing our country back as well.

Marty Preston, Branch Manager of Benchmark Mortgage in Lexington, Kentucky, is a consistent Top Producer and one of the country’s premier mortgage lenders. Marty is also a nationally known speaker and a major force in the national mortgage banking scene.

Six Ways to Go Back to School on a Budget

by bmadmin

The summer is coming to a close and the 2012-2013 school year is upon us.

The seemingly endless list of school supplies and clothes has to be handled now. It’s time to get the backpack and supplies. The kids need new clothes and shoes.

This year the average family with students from Kindergarten to 12th grade is expected to spend $689 on Back-to-School items. It’s up from $604 last year according to the National Retail Foundation.

“When it comes to their children, there’s nothing more important to a parent than making sure their children have everything they need, even in a tough economy—and especially when it comes to back-to-school shopping,” said NRF President and CEO Matthew Shay.

Here are six ways you can save a little money and go back to school on a budget:

1. Know the Dress Code – Before you go out shopping for school clothes make sure you fully understand the dress code. We want to ensure the clothes we buy can all be worn to school.

2. Buy Supplies for the Whole Year – August is typically the cheapest month for school supplies. Many of the big office stores even price items below cost. Look for notebooks, paper, pencils, and other items on super discount and stock up.

3. Break Down Bulk Snacks – Save some money by purchasing larger packages and divide it up into individual portions.

4. Know When It’s Not a Deal – Tax free weekend, back to school sales, semi-annual clearance. You will hear plenty of creative names for sales. Check the prices and make sure it really is a deal.

5. Wait For The Clearance -Stores will begin marking down school supplies right after the rush. You can get some great deals if you can hold out a few more days.

6. Give Them a Budget – Let your kids get involved in the process by giving them a budget for school supplies and clothes. They will appreciate learning how to stretch the dollar and get the most out of their budget.

How do you handle this time of year to make sure you go back to school on a budget?

Five Money Saving Tips for Potential Homeowners

by bmadmin

Before you begin the process of looking for a new home, as a potential home buyer, you will want to carefully inspect your financial situation. Home buyers should be certain their current income and monthly expenses can support a healthy mortgage payment. There are several ways would-be home buyers can maximize the income they have and make certain they can afford a mortgage.

By following these few simple money saving tips, those wanting to purchase a home can make that dream a reality.

Tips for Saving Money:

1. Create a Budget – By determining your fixed and discretionary expenses, families can focus where they have some flexibility in their budget. Keeping a log of expenses will also help families understand how their money is spent each month and can assist them in making necessary changes.

2. Write Down Goals – When goals are written down they tend to become more real. Once goals are in writing, families are more likely to work towards those written goals. Keeping these goals in a plain view will provide the family with a constant reminder as to the purpose of their sacrifices. Consider hanging your goals on the refrigerator.

3. Eat at Home – One of the easiest ways to save money is to eat at home. Eat breakfast at home, and take a sack lunch to work. Preparing dinner at home will not only save money but provide the opportunity for family time as well. Are you currently eating out or cooking at home?

4. Make a Grocery List – Before going to the grocery store, families should have a list of ingredients they need for the week’s meals. This will curb impulse shopping and prevent unnecessary purchases which simply go to waste. Eating something before you go grocery shopping will prevent the “hunger buys” also.

5. Build in Treats – Living on a budget should not mean never eating out, getting a coffee, or going to a movie. Depriving the family of these special treats will make it impossible to stick to a budget. While going out to a movie every weekend or buying a coffee every morning may not be the best money saving ideas, building in opportunities for these occasional treats is crucial.

Mortgage lenders recommend that families seeking to buy a home first consider their financial situation and how this may affect their ability to obtain a mortgage.

We can work with you to create a plan of homeownership that is best for your long term goals. By adopting the above money saving tips, families can ensure their financial priorities are in order.

Five People That Should Update Their W-4 Tax Withholding Form

by bmadmin

How often do you review your W-4 to ensure you are having the correct amount of taxes held by your employer?

Many tax and financial experts are encouraging taxpayers to review their withholdings because you could be having more tax taken out of your pay than you will be liable for at the end of the year.

The following circumstances should prompt a review of your W-4 Form to ensure you are claiming the correct number of exemptions.

1. Your spouse has been laid off or quit working. Usually, when both spouses are employed the taxpayers tend to increase their W-4 withholdings. The loss of a job for either of the spouses could be reason to reduce the federal tax withholding by claiming the maximum allowable exemptions.

2. Your spouse owns and operates a small business. Couples with an employed spouse and a small business owner may have increased their federal withholdings at the job to ensure they meet the income tax obligation from their spouse’s business profits. However, for the last tax year the profits from their spouses business may have either been eliminated or substantially reduced. These taxpayers might find it necessary to file a new W-4 Form and reduce their federal income tax withholdings to reflect the reduced tax liability from the spouses business.

3. You have recently had a baby or took on elderly parents as dependents. People in this situation may also find they are entitled to additional dependent allowances. Thus, they should consider filing a new W-4 Form to reflect the additional dependent allowances the taxpayer is entitled to claim on their tax returns.

4. You sustained substantial capital losses in the stock market. Capital losses can be claimed against your salary and other ordinary income. These taxpayers could be entitled to claim an additional withholding allowance.

5. You received a salary reduction or making less money now. Taxpayers might find themselves being placed in a lower tax bracket due to a new job or reduced income. Both these factors could entitle the taxpayers to reduce his federal income tax withholdings by claiming additional allowances.

A strategy of overwithholding so you can plan for a tax refund may not be a smart idea if you’re faced with an extremely difficult time meeting your current financial obligations. It’s better not to use credit cards or lines of credit to fund your current obligations and instead, increase your paycheck by maximizing your dependent allowances you are legally entitled to by the IRS.

This article is provided for informational purposes. Always seek advice of a competent financial advisor with any questions you may have regarding a financial matter.

Boomerang Kids Returning Home

by bmadmin

Five million young adults are currently living with their parents, according to the Census Bureau – an astounding one in eight 25- to 34-year-olds.

But it’s no wonder: Unemployment for people in their early twenties now touches 14%, vs. the national average of 8.5%.

New grads are having a harder time finding first jobs, and layoffs are forcing some older twentysomethings, even thirtysomethings, to return home. If your kid comes boomeranging back, use these tips to help smooth the financial transition – for both of you.

1. Consider charging token rent if the kid has income and assigning responsibilities around the home. This establishes that you’re not replaying adolescence and trains new grads to manage financial obligations. Lay out expectations right away, but think about offering an initial grace period on rent.

2. Rather than offering cash outright – which doesn’t teach your kid any lessons and may threaten your own financial security – offer an unemployed kid a hand in finding work. If they just can’t find that perfect job, you may want to suggest that your child take a “for-now” job while continuing to look for the perfect gig.

3. First month’s rent, security deposit, and moving costs add up fast. So encourage your child to have some of every paycheck deposited in a “move-out fund.”

Follow these tips, and you just might get your empty nest back one day.

10 Ways to Save Money During the Holidays

by bmadmin

According to this year’s National Retail Federation holiday survey, the average American will spend just over $700 this season on gifts, cards, decorations, and more. This is one time when you want to be below average — way below. In fact, if you are in debt, just say no to gift buying this holiday. There is no reason for you to go further into debt buying gifts for others.

If you are buying presents this year, the key to avoiding a holiday season that drains your bank account is to start planning early. Here are the top 10 ways to save money during the holidays and starting the new year in better financial shape:

Plan it. Before you shop online or enter the chaos of the shopping mall, take ten minutes at home to create a spending plan that lists who you need to buy for and how much you will spend.

Use discounted gift cards. How would you like $100 worth of gifts for $80? You can purchase discounted gift cards for hundreds of online/offline retailers including the Apple Store, Radio Shack, Sears, Home Depot, and others. Discounts are usually 5%-30% off the face value of the card. Check out GiftCardRescue.com and GiftCards.com.

Use social media. Before you start shopping, start following your favorite retailers on Twitter and Facebook. Many companies offer discounts exclusively to their Twitter followers and Facebook friends. A quick search of their recent posts may reveal money-saving discount codes.

Barter online. When you’re shopping online, look for a “chat” or “live help” button. Tell the customer service rep you’d like to shop with them but you want a 15% discount. Ask them to check with their manager or you will abandon your shopping cart and click over to their competitor. This won’t work all of the time, but when it does it will save you money.

Find discount codes. I never buy anything online without trying to find a discount code first. I’ve literally saved hundreds of dollars and it doesn’t take more than a minute. Simply go to RetailMeNot.com, SecretPrices.com, or do a Google search for coupon codes to pull up all of the available discounts for your store. Use the discount code during the checkout process to get free shipping or to save 20% or more.

Get cash back. If you’re going to spend hundreds of dollars this year on gifts, you might as well try to get a few bucks back. Some stores offer programs to get free store cash if you spend a certain amount.

Bring on the envelopes, chuck the credit cards. Leave your credit cards and debit cards at home. Allocate an amount of money for each gift, and put that money in separate envelopes marked with the recipients’ names.

Give group gifts. When exchanging presents within large groups of people, even “token” gifts can really add up. Try a “white elephant” exchange, a secret Santa strategy, or going in with co-workers on a gift for your boss.

Make a promise that you won’t buy anything for yourself. When you’re shopping for gifts, it’s easy to be tempted to buy for yourself. Make this season about others, not you — and remember that the items you want will likely be less expensive during the after-season sales.

Avoid the “10% off, buy more” phenomenon. Stores often offer great deals when you sign up for their credit cards, but beware the high rate of interest these cards charge and ask yourself if you’ll really be saving money in the long run. And don’t spend more than you intended just because you’re now getting a discount on your purchase.

If you follow these money saving tips, I guarantee you will put more green — and less red — into holiday shopping this year.

Ho Ho Ho!