With the economy declining the way it is these days, it is becoming harder and harder to find the funds needed to finance home improvement projects. However, regardless of a bad economy, houses still tend to fall into disrepair over time and therefore the need for repair and improvement is just as urgent as it has ever been. Luckily, home owners have a lot more options when financing home improvement projects than you might know.
One of the best ways to finance home improvement projects is to take advantage of increasing home equity and, as a home owner, you are in the perfect position to do so. Equity can be used in two different ways. Which way you decide to go with should depend on which is more convenient and less costly to you as an individual. Your first option is known as mortgage refinancing. In mortgage refinancing, you simply combine your existing mortgage with the cost of your home equity. You then replace your original mortgage with the larger new one. Doing so allows you to have only one payment to deal with. This is a great method so long as your interest rates are favorable. However, if they are not, the second option might be best.
The second option is called home equity financing. In this, instead of combining your mortgage with your home equity, you simply pay a home equity loan along side your mortgage. Either way, home equity loans allow you to use your existing equity to finance home improvement projects.
Deciding on which route to take can sometimes is a difficult if not daunting task. However, with the help of a home improvement financing company, it really is easier than it seems. A representative from a company of that type would be able to lead you through the decision making process and guide you to the right choice.
If there was a red-headed step child of financial products these days, it would probably be the fixed annuity. For one reason or another, fixed annuities have been getting quite a bit of bad press. And while it is true that there are some distinct disadvantages to using this type of product, there are certainly some factors that still make it advantageous for some investors. The key is finding the right situations for the product, and not allowing your financial adviser to oversell you.
One of the major concerns that regulating agencies have against the fixed annuity product is the fact that they have been oversold by zealous insurance agents in recent years. The commissions can be quite high on an annuity, and this inevitably leads to a degree of fraud. The best way to circumvent this is to use an adviser that is credentialed, is held to fiduciary standards, and doesn’t try to sell you an annuity in the first hour of meeting them.
One of the fixed annuity advantages that is most prevalent is the consistency of the product. This insurance product is both stable and considerably safe. Comparable to a CD in risk, it provides consistent and reliable returns on your investment. For this reason, fixed annuity contracts are often used in retirement planning. They provide the investor with a steady stream of income distributions, and can be designed to make payments for the duration of the annuitant’s lifetime. These life payments allow the investor the comfort of knowing they cannot outlive their income streams.
Despite the bad press, annuities can certainly have a place in your investment portfolio. Coupled with other investments, a fixed annuity can allow you to balance your riskier assets with lower risk investments. Annuities are definitely not for everyone however. You should consult with a qualified financial planner before implementing it into your long-term financial plans.
