Know How to Qualify

To qualify for refinancing, you will likely go through an approval process similar to what was needed for your original loan. These three factors weigh heavily in this process: (1) your credit score; (2) your income; and (3) whether there is sufficient equity in your home. In general, the higher your credit score and income, the better the terms that will be available to you. If your financial situation has changed considerably since your original loan, you may still be able to qualify for government-sponsored loan programs available for those with less-than-ideal credit or income.

Understand the Rates and Terms

In considering a mortgage refinance, it’s important to know what interest rates, monthly payments, and loan terms may be available to you. The Federal Reserve periodically adjusts federal loan interest rates to stimulate or slow down the economy, and being familiar with rate trends is crucial when you’re looking to refinance your home loan. A half of a percent difference in your rate could mean thousands or tens of thousands of dollars in savings over the life of your loan. Shortening your loan’s term may mean you could pay it off sooner and be able to enjoy your home debt free.

Consider Cash-Out Opportunities

A cash-out refinance allows you to take funds from your home’s built up equity (the difference between your home’s current market value and the mortgage balance remaining). You could use this cash for any purpose, including paying off high-interest credit card debt. If you use it for home improvements, you could even build equity right back into your property with renovations that increase its appraised value.

What You Want vs. What You Need

Many insurers offer the option to bundle multiple products together; referred to as a multi-policy, multiline, or multi-product discount, you should bundle your homeowners and auto policies if you:

• Find the combination of policies cheaper than what you currently pay.
• Cannot find cheaper rates at separate companies.
• Are trying to insure a home.

Some factors, such as the number of years you’ve been driving, are largely out of your control. Other factors, however, are less fixed and could directly affect your premiums. With this in mind, consider whether bundling your auto and home insurance would be more expensive than separate policies at two companies.

What are the benefits of bundling home and auto insurance?

There are a few reasons beyond price that may make bundling beneficial.

1. Having an auto policy with a company that also sells homeowners insurance may give that company more incentive to insure your home — despite the risks.
2. Having multiple policies with one insurer may make them less likely to drop you.
3. You could experience less hassle managing policies when they come from a single company. You’ll work with one agent, if applicable, and usually manage both home and auto policies within the same web portal.
4. It may be a good idea to pay a higher price for the bundle if you are having trouble finding a company to insure your high-risk home.

With the right bundle, you could be on your way to saving money on both your auto and home insurance policies.

What is a Deductible?

A deductible is the amount of money you are required to pay before your coverage begins to take effect. However, there are certain expenses that do not apply towards your deductible and your health insurance policy should provide you with coverage for these expenses. Health insurance deductibles can range from hundreds to thousands of dollars depending on your specific policy and some policies may not have a deductible at all.

It is also important to note that The Affordable Care Act limits the deductible amount for health insurance policies. In 2021 the limit was $7,200 for an individual policy and $14,400 for a family policy. Typically, lower annual deductibles come along with higher insurance premiums.

How Does a Deductible Work?

Now that you know what your deductible is, it is important to understand how it works! Deductibles in other forms of insurance often work on a per-incident level. However, health insurance deductibles are often set up on an annual basis and restart yearly. Once you’ve spent your out-of-pocket maximum, your plan covers 100% of costs for the rest of that year. Each year, the health plan sets a new deductible and out-of-pocket maximum. Typically, this amount is the same as the year prior, however, sometimes it does change.

Well, that might not be entirely accurate. Medical expenses should be one of your top budgeting priorities, with out-of-pocket expenses on the rise and the always present risk that an unexpected medical cost could put a ding in your spending plans. Even if your health insurance kicks in to cover an expense, your budget for healthcare costs should still include your premiums.

To better plan for healthcare costs, consider these 5 steps:

1. Determine Your Total Healthcare Budget

When budgeting for medical expenses, it may be helpful to separate your healthcare costs into three categories:

• Fixed premium: The set amount you pay for health insurance. If you get health insurance through work, this expense may be deducted automatically from your paycheck.
• Routine: These are your anticipated healthcare costs, even if they fluctuate. Think your copay for your annual checkup or the cost of a regular prescription.
• Unexpected: These costs can be difficult to predict, like an unplanned trip to the emergency room or an urgent medical procedure.

When it comes to planning healthcare costs, it is important to look at how much you spent previously. This will be a good indicator as to how much you may spend in the future. Anticipate any extra costs this year that you didn’t encounter last year such as a surgical procedure or if you are expecting a child.

2. Put Your Health at the Top of Your Priority List

Once you’ve estimated your annual healthcare costs, consider how you prioritize them against your other essential expenses. Healthcare should ideally fall between necessities like your mortgage or rent, food, transportation, and phone. By adjusting your mindset to give your health the significance it deserves, budgeting for medical expenses will become second nature.

3. Set Up An Emergency Fund

An emergency fund is an account that is set aside to help cover unexpected financial or medical emergencies, such as a procedure or medication that is not fully covered by your insurance plan.

Experts typically recommend saving at least three to six months of living expenses in your emergency fund so you can pay for these expenses without having to take on debt or dip into savings earmarked for other financial goals. However, if you are starting an emergency fund from scratch, it’s better to start small and focus on a goal that’s attainable for you.

4. Take Advantage of Health Savings Accounts

There are special health savings accounts that are funded by you or your employer that can help cover your health expenses and plan for healthcare costs.
3 Common Health Savings Tools to Consider:

• A Health Savings Account (HSA)
• Health Reimbursement Arrangement or a Health Reimbursement Account (HRA)
• Flexible Spending Account (FSA)

5. Evaluate Health Insurance Choices Carefully

To budget for healthcare costs effectively, you should take time to evaluate your health insurance options to find the best plan for you and your family. For each plan, you’ll want to carefully consider the type of plan (are your preferred doctors, hospitals, and pharmacies covered?), as well as the cost of premiums, deductibles, copays, and prescriptions.

Start Budgeting for Your Healthcare Costs Today

When it comes to budgeting for medical expenses, a little planning today can go a long way toward providing for a more financially secure tomorrow. With a healthcare budget firmly in place, you’ll be able to make better decisions that are good for your health and your wallet.

In this guide, we’ll walk you through some maintenance tips that could delay or even prevent the need to pay for a big fix to your ride.

1. Inspect & Maintain Tires

The lifespan of your tires quickly depreciates if they aren’t properly maintained. A new tire, on average, costs about $120 dollars. Checking your tire pressure includes finding the recommended pressure and checking the PSI.

For every 3 units of PSI below recommendation, your vehicle consumes 1% more fuel and incurs about 10% more tread wear.

A flat tire is a hazard that can be dangerous to you and your car. There are several preventative steps you can take to help avoid this, such as rotating your tires

When: Set a monthly date on the calendar to check your tires or check them every 5,000 to 10,000 miles.

2. Change the Oil

Routinely checking and changing your car’s oil is essential to keeping its engine in running condition. The simplest task to increase the life of your vehicle is to maintain the proper amount of oil in the engine.

It’s better to spend as little as $25 to get the oil changed than to put it off and risk wearing out your engine.
When: Check your oil each month or every 5,000 miles and change it as directed in the car’s owner’s manual.

3. Check Your Engine Air Filter

Many car problems are due to clogged air filters or loose fittings. A dirty engine air filter can allow dirt and other particulates into your car’s engine and reduce its efficiency. You can get the filter replaced by your mechanic or in the comfort of your garage in just 10 minutes.

When: Inspect your car’s air filter once a year or every 12,000 miles, and replace it as needed.

4. Check the Fluids

Several fluids should be kept at the appropriate levels to help keep your car running properly. According to Popular Mechanics, you or your mechanic should check:

• Engine oil
• Coolant
• Power steering fluid
• Brake fluid
• Transmission fluid

A leak with any of these fluids can affect the way your car drives. If you spot a leak, you may be able to identify the fluid by its color.

When: It’s a good idea to check these fluids twice a year—once before the warm weather hits and again before the cold weather swoops in.

5. Check Your Battery

Corrosion comes in the form of a white or bluish powder and can form on the terminals of your battery. If you don’t keep them clean, the battery could develop a crack or not function properly, leaving you stranded. Buying a $5 wire brush and keeping the terminals looking spiffy is money well spent.

When: Test your battery twice a year and inspect it for corrosion

6. Check Your Spark Plugs

If you notice that your car is not performing efficiently, or your engine is not working well, then the reason could be the spark plugs. You might want to check the spark plugs and wires if they are old or they could be covered in a buildup.

When: Spark plus usually lasts for 30,000 miles or more; see your owner’s manual for more information.

Set Up a Car Maintenance Line Item in Your Budget

Even though keeping up with car maintenance is less expensive than doing major repairs, it can still add up. Make a line item in your budget for car maintenance. This way you can save up over time for that new spark plug, oil change, or set of tires.

Just like regular car checkups, it’s also a good idea to review your car insurance policy from time to time. This can help ensure your policy’s coverages, limits and deductibles are up-to-date and suitable for your current situation.