Simple Tips on Borrowing Money

While the best advice regarding borrowing money is "don't", there are times when taking a loan is a good choice. Follow these tips when you do:

• Shop around for Interest rates. You might find a lower interest just by spending a few additional minutes or hours talking with a few more banks. They want your business so don't be intimidated. You have control over who you want to do business with. So choose wisely and carefully.

• Try home equity loans. If you're going to do a large purchase or expense, you can tap into the equity in your home, otherwise called home equity loan or a second mortgage. This will allow you to leverage the money you've already paid against your mortgage and use the value of your home as collateral against the larger loans. Check out private banks on this one.

• Check out lines of credit. Lines of credit have more flexibility than standard loans. They are like bank accounts and you only pay the interest on the outstanding balance. This is helpful to set up in an emergency.

Guidelines in Owning a House

Many of us look forward to owning our very own house and even consider them as an investment. Others, however, would say that a house is not much an investment as it is a liability, incurring for owners debts and expenses that can take decades to pay off. Below are some tips on buying or owning a house.

• don't spend more than 40% of your monthly income on the amortizations for your home. Don't reach out for the stars if it will kill you financially.

• Investigate different types of mortgages. There are many types of mortgage options. Check what's best before deciding.

• Buy a house that needs repairs. Buy it cheap and you can add value with the repairs. This will save you money.

• Deal directly with the seller. This will save you agent's fees. If you want to use an agent, make sure you're calling the shots and the agent is on the same page as you.

• Negotiate the selling price. Home prices are almost always negotiable. So haggle. Offer a price that's a few percentage below its asking price.

• Refinance your mortgage. If you can cut at least 1% on your mortgage, then refinance it.