mortagesandforeclosures

by Rich Clower

We all think we do the best we can when it comes to our finances. We think we are saving money, but we never sit down and do math. You may be surprised if you do.

Here are the top five money-saving myths that fall for:

1. Sales shopping saves money

When you refinance your home, you surely are not saving that much money in the long term. Yes, your monthly payments are lower, but you refinanced for another 30-year term. This means that if you have already paid 10 years of the mortgage, then refinance for a further 30 have essentially extended its credit to 40-year mortgage. Sit and do math and you'll see if they are really saving anything.

Then if you never use the item that you are actually losing money. This may apply to the transaction of shopping and shopping in bulk. It does not matter whether you bought your daughter 35 pairs of shoes a garage sale for $ 1 each. If she had only two pairs of them, I just lost $ 33.

2. Refinancing your home pays off

When you refinance your home, you surely are not saving that much money in the long term. Yes, your monthly payments are lower, but you refinanced for another 30-year term. This means that if you have already paid 10 years of the mortgage, then refinance for a further 30 have essentially extended its credit to 40-year mortgage. Sit and do math and you'll see if they are really saving anything.

If you really want to save money, refinance to lower rates and a shorter period. Your monthly payment may not come down, but the discharge in May

3. Savings accounts save us money

It goes the other way around too. If your debt is less than the interest rate on your savings, your money works better savings. But with today's interest rates are so low, your debt is probably higher than the amount of interest earned on your savings account. This means that they are actually losing money.

It goes the other way around too. If your debt is less than the interest rate on your savings, your money works better savings. But with today's interest rates are so low, your debt is probably higher than the amount of interest earned on your savings account. This means that they are actually losing money.

4. Zero percent interest rate saves money

When you take the card with zero percent repayment term, you're saving money. You are only delaying payments for items. You can not save and not spend more. But if you do not pay the money back within the zero percent period, will pay interest on those items. This will cost you money.

5. Zero percent interest rate saves money

When you take the card with zero percent repayment term, you're saving money. You are only delaying payments for items. You can not save and not spend more. But if you do not pay the money back within the zero percent period, will pay interest on those items. This will cost you money.

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