Blog – Page 767 of 820 – First Rate Financial Group

09

Jan

Around The Home

Tankless Water Heaters: The Pros and Cons of Going Tankless In Your Home

Tankless Water Heaters: The Pros and Cons of Going Tankless In Your Home Large water heaters are unsightly appliances that home-sellers would rather hide. Although it’s not always possible to banish these structures, it is possible to replace them with a version that is not as overbearing. Tankless water heaters have the potential to make one home stand out amongst the competition, but they do have some disadvantages along with the benefits.

Pro: Tankless Water Heaters Use Less Energy

Traditional water heaters continuously heat water that is just sitting in the tank, and this requires energy. Tankless water heaters, on the other hand, do not heat the water until someone needs it. Therefore, they are more energy-efficient and cost less to operate.

Pro: Tankless Water Heaters Last Longer

Traditional water heaters will need to be replaced after about a decade, but tankless water heaters can last much longer. If someone is planning on purchasing a home with a new tankless water heater, he or she would not have to think about replacing it for about 20 years.

Pro: Tankless Water Heaters Are More Space Efficient

The typical traditional water heater is 24 inches wide and 60 inches tall. Tankless heaters save a lot of space because they are generally only 20 inches wide and 28 inches tall. They open up a lot of space, and this impresses buyers greatly.

Con: There Is Less Available Hot Water with Tankless Heaters

Although a tankless heater can provide a home with hot water only when it is needed, the amount is limited to a few gallons at a time. This will mean that more than one occupant in the home cannot take a shower at the same time. They will definitely not be able to do this while they run the dishwasher or the washing machine.

Con: Tankless Water Heaters Are Typically More Expensive

Tankless water heaters cost around $1,000 while the traditional version only has a price tag equal to $300 or $400. While this higher up-front purchase cost is a con, if you consider that a tankless water heater should last longer than a traditional heater you may end up saving a bit over time.

08

Jan

By support

Market Outlook

FOMC Minutes: Low Inflation Rates Won’t Delay Rate Hikes

FOMC Minutes: Low Inflation Rates Won’t Delay Rate Hikes The minutes of the Fed’s Federal Open Market Committee (FOMC) indicate that Fed policymakers aren’t concerned about low inflation rates as an obstacle to raising the target federal funds rate.

The national inflation rate was 1.50 percent for the 13 months ending in October. The inflation rate as reported in the Consumer Price Index (CPI) dropped to 1.25 percent in November.

The Core Consumer Price Index, which excludes food and energy sectors, showed an inflation rate of 1.75 percent. The Fed has repeatedly cited a target of 2.00 percent inflation, but inflation rates have remained consistently lower.

Recent freefall in fuel prices is keeping inflation below the Fed’s target range, although long-term indicators for inflation remained stable.

Fed Says Economy Increasing at “Moderate Pace”

Committee members noted that economic conditions improved at a moderate pace during the fourth quarter and that labor conditions also showed additional improvement. Non-farm payroll reports expanded in October and November and exceeded third quarter growth rates.

The national unemployment rate edged down to 5.80 percent in October and held steady in November. FOMC members established a national unemployment rate of 6.50 percent as a target rate for removing accommodative measures such as its asset purchase program that concluded in October.

Labor force participation rose, while the number of those under-employed in part time jobs declined.

Private sector hiring and quits increased, although job openings remained elevated in November and maintained levels seen in September and October. Stronger labor markets typically support housing markets as more families can afford to buy homes when hiring and employment rates are stable.

Housing Markets Remain Slow; May Inspire Would-be Buyers

The FOMC minutes noted that committee members viewed housing markets as housing starts and building permits saw slight increases. Construction of single-family homes increased while multi-family construction decreased. Ongoing shortages of rentals are seen as a factor driving renters into the housing market.

Sales of new and existing homes rose “modestly” in October. Slowing home sales will likely drive prices down as inventories of available homes increase. Mortgage rates are expected to rise, but analysts don’t expect mortgage rates to rise much beyond five percent, which remains historically low.

In spite of low mortgage rates, the Fed characterized mortgage refinance activity as “subdued” and said tight mortgage credit conditions continue to inhibit mortgage approvals for all but those with “pristine” credit.

Surveys of economic and financial analysts indicated that the Fed may raise its target federal funds rate mid-year instead of initial projections for raising the rate in late 2015. The target federal funds rate is currently 0.00 to 0.25 percent.

07

Jan

By support

Home Mortgage Tips

It’s 2015! Get a Jump on Your Payments with Our Quick Guide to Paying Your Mortgage off Sooner

It's 2015! Get a Jump on Your Payments with Our Quick Guide to Paying Your Mortgage off Sooner With the start of the New Year, it’s common to set new resolutions. While there are many goals that are worthwhile, paying off your mortgage as soon as possible can significantly improve your financial position and is a great goal to aim for. With that in mind, let’s take a quick look at a few helpful tips for paying your mortgage off sooner.

Refinance To A Shorter Mortgage Term

For example, switching from a 30-year mortgage to a 15-year will get your mortgage paid off in half the time it would have originally taken, and it will also lower the total amount owed. By switching to a 15-year mortgage plan, you can save well over a decade’s worth of interest payments.

Carefully Consider How Much Space You Need

Many people have more home than they can afford. By downsizing to a smaller, cheaper house, you should be able to pay more than your minimum payments each month. Other nice perks, such as saving money on heating and air conditioning, may also be able to help make the goal of paying off your mortgage seem more attainable.

Make Payments Every Other Week

Mortgage companies often give borrowers the option of choosing to make payments either every month or every other week. If you opt to pay every other week instead of every month and have a standard, 30-year mortgage, you’ll be able to pay off your debt about six years sooner than expected.

Cut Expenses

Find a regular expense in your budget that isn’t a necessity and start using that money towards your mortgage instead of what you would normally spend it on. For instance, bringing lunch to work each day instead of eating out could easily save a person at least $100 per month. That’s over $1,000 per year!

Set Extra Money Aside

To pay off your mortgage quickly without having to cut regular expenses, use overtime income, holiday pay and gift money for extra mortgage payments. This way, you can pay down your debt without having to lower your standard of living. Another option is getting a part-time job for a few hours each week and putting the extra income towards your house.

There are many things that you can do to pay off your mortgage quickly, but you don’t have to do them all. Whether you choose one tip from this list or all five, you should be able to start making progress on your loan. For more information about reducing your payments, be sure to contact your mortgage professional today.