When to Trade In Your Mortgage

When to Trade in Your Mortgage

The right answer may be a lot sooner than you think. Here’s why:

The conventional wisdom is that interest rates have to drop to make refinancing attractive. The conventional wisdom may be wrong.

In fact, if you are planning to live in your house for many years, refinancing to a lower rate by as little as 1 percent may be profitable.

For a typical mortgage that involves refinancing costs of 1 percent of the total loan, accounting firms figure that, if you can lower your interest rate by a single percentage point, the new loan will put you ahead after just 18 months.

Refinancing can give you other opportunities, like switching from a 30-year fixed mortgage to 15 years. The switch usually will bump up your monthly payments, but it will also reduce the overall cost of your loan, and the interest rate you pay will generally be about a half percentage point lower than a 20-year mortgage. Another advantage: You build up more equity in your home that you can tap into later. Recent figures show that a third of the holders of 20-year mortgages choose 15-year loans when they refinance.

They may not necessarily be making the right choice, though. Consider the following example: if you get a $150,000, 30-year mortgage at 7.3 percent, you will pay $229,208 in interest over the life of the loan. A 15-year mortgage at 6.8 percent would cost less than half that – $89,612. The difference in monthly payments is $304 – $1,028 for the 30-year mortgage versus $1,332 for the 15-year mortgage.

Club marin of Montreal. Photo by Elena.

But suppose you opt for the 30-year loan and invest the $304 difference in the stock market, where it earns 7 percent after tax. (The historic return on stocks is about 10 percent before taxes). And suppose you also invest the extra tax savings generated by the longer-term loan.

Since the loan amortizes more slowly than a 15-year mortgage, more of your monthly payment is tax-deductible interest. After 10 years, the 30-year loan looks like a better and better deal. By the end of 15 years, the holder of the 30-year loan would have earn enough on his investment to pay off the remaining debt on the house and still have some $10,000 left.

Once you choose a mortgage, you`ll have to decide about refinancing costs. You`ll have the choice of covering them at the outset by paying points or spreading them over the life of the loan by accepting a somewhat higher interest rate. In most cases, you should opt for not paying points. By investing the money you would have paid in points, you can build up a tidy nest egg over the life of your mortgage, which should amount to more than you`d save if you paid the points and invested the amount you saved in lower interest costs on your loan.

The bottom line, everything considered, the best mortgage for you will be the one whose term most closely matches the time you expect to keep your house.

Your monthly payments (principal and interests) will be assuming different interest rates and loan terms.

Those Free Miles Are Flying Away

Those Free Miles Are Flying Away

Airlines are making it harder and harder to get freebees

Rembember the day when 20,000 frequent flyer miles bought you a free flight anywhere in the United States? No longer. In the past five years, veteran frequent flyer mile gatherers have watched their stashes slowly but surely devalue. Travelers who have been saving their miles for a rainy day are in danger of being washed out.

More than 200 billion of the trillion miles awarded since the inception of frequent flyer programs remain unredeemed. Airlines are making it harder for travelers to do so by raising the number of miles needed to claim a free trip, lowering the number of miles awarded on popular routes, imposing expiration dates on miles awarded, and limiting the seats available for coupon award tickets.

The savvy flyer can still beat the miles crunch, though. If you need an extra five thousand or ten thousand miles to get a coupon, you can get them without flying by using a credit card or long-distance telephone carrier aligned with a frequent flyer program. Travelers who need fewer miles can take advantage of the many hotels, car rental agencies, and airline frequent flyer clubs that have ongoing frequent flyer promotions. Hotels and car rental companies listed in airline frequent flyer newsletters often offer double mileage promotions, while airline clubs such as TWA Ambassador’s Club award 5.000 miles for a one-year membership.

Beyond these backdoor methods, travelers would do well to compare their frequent flyer programs with other major programs. Where there is a choice, it pays to sign up and fly with those programs that are the most lucrative.

Free Miles Flying Away. Photo by Elena.

Expert List: How frequent flyer programs stack up: Here’s how Randy Peterson, editor of Inside Flyer magazine, rates the airlines’ frequent flyer programs. Peterson has analyzed frequent flyer programs since their inception in the 1980s.

Program: NortherWorldPerks, American AAdvantage, USAIR Frequent Traveler, United Mileage Plus, America West Flight Fund, Alaska Mileage Plan, Continental OnePass, Delta Frequent Flyer, TWA Frequent Flight Bonus, Southwest Company Club. (Grade, Ease of Earning, Blacjout, Seat Availability, Customer Service, Hotel partners, Tie-ins.

Four Ways to Fly For Less

Couriers, rebaters, consolidators, and charters are cheap – but tricky

In 1959, when How to Travel without Being Rich was a hot seller, a 10-day trip from New York to Paris including air fare, lodging, and sightseeing cost $553. Today (in 1994), that price would elude even most serious of cost cutters. But bargains still abound for creative travelers willing to do a modicum of research.

Air Couriers

The absolute cheapest way to fly is a courier. Although most large courier companies such as Federal Express and UPS use their own couriers, smaller companies use “freelance couriers”. A typical courier fare can beat low as one-fourth of the regular airline economy class fare. Last-minute tickets are especially cheap – one courier company recently listed a fare from Los Angeles to Tokyo of $100. A full-fare ticket would cost around $1,800.

In exchange for a drastically reduced fare, couriers have minimal duties. It works like this: After booking a flight with a company, the courier meets a representative of the company at the airport two to four hours before departure. The agents hand baggage checks for the courier and other paperwork over to the courier then assures the arrival at his international destination. He accompanies the cargo through customs. Once through customs, the courier hands over the paperwork to the company agent. After that he is free to go.

Drawbacks: Because air courier companies use a courier’s allotted baggage space for cargo, couriers generally are limited to carry-on baggage only. More important, courier travel can be unreliable. On rare occasions, for instance, their shipments because of last-minute cargo changes. In this instance, if a courier does not have flexible travel plans and cannot wait for the next courier flight he or she may have to buy a full-fare economy ticket from a regular airline.

(Old News from 1994)

Fashion

Fashion

Fashions fade, style is eternal – Yves Saint Laurent

Fashion, style and glamor need no introduction. After all, looking one’s best may even help in making friends, securing successful outcomes at interviews and gaining credibility, according to social psychologists.

The fashion world is one of glamour and beauty. However, fashion trends can also be quite dangerous. To illustrate, how do supermodels stay so thin? For example, the thin ideal perpetuated by female supermodels has often been blamed for the rise of eating disorders among teenage girls, women and homosexual men in Western societies. What is more, several professional models have succumbed to complications of anorexia nervosa or bulimia nervosa, such as an imbalance of electrolytes.

Additionally, dangerous and hazardous behaviours, such as consuming tissue or cotton (!) because it swells up the stomach, have been described as commonplace among certain parts of the fashion industry. Alternatively, many fashion models, such as world’s famous and highest paid Brazilian supermodel Gisele Bündchen, affirm that they have never had any problems with eating or had disordered eating habits to stay fit and thin. Indeed, the gorgeous top model mentioned genetics, a healthy diet and exercise regimen as responsible for keeping her perfect figure. Also, many models smoke cigarettes, and while tobacco smoking is destructive to health, it does have the effect to make one thinner, in some cases. Also, what is certain is that quitting smoking, which takes an average of eight times for a successful attempt, is said to make most people gain 10 to 15 pounds.

Fashion style. Photo by Elena.

On the other hand, the fashion world brings happiness into the hearts of many people, especially of those who can afford it. For instance, a pair of Christian Louboutin shoes has filled many a young woman’s heart with joy. The famously red bottom coloured footwear is easily recognized and instantly glamourizes any outfit. Other famous designers also convey a sense of prestige and status to the wearer, in part because retail prices for these luxury goods are so high. Indeed, marketing theory would predict that designers and brands such as Prada, Chanel, Louis Vuitton, Fendi, Gucci, Christian Dior, Burberry and others command the prices they do not only because of superior quality of make and materials, but also because of the prestige, status and glamour premium.

Fashion icons vary with time. In 2011, perhaps the most extravagant fashion statements were made by pop and rap stars, respectively, Lady Gaga and Nicky Minaj. Nonetheless, singers Katy Perry and Rihanna, rumored best friends, have likewise harbored interesting outfits and an array of changing hair colors.

Historically, Audrey Hepburn is associated with class and elegance, a contemporary title bestowed on Australian born Nicole Kidman, whereas Coco Chanel left behind a cosmetics and fashion retail empire. Some say that while it is understandable why someone would prefer to wear designer jeans or business suits, choosing brand make-up is less so. Nonetheless, both quality and name seem important.

The importance of fashion or la mode (fashion in French) are often portrayed in the media, as in the series and following films Sex and the City starring Sarah Jessica Parker, Kim Cattrall and others. Along these lines, prestigious brands encompass Prada, Cartier, Pierre Cardin, Louis Vuitton, Versace, Gucci, Dolce & Gabbana and Emporio Armani, to name a few. Clearly, apparel retail is a huge industry, a demanding and fast changing world, with, as again depicted in films, magazines and TV shows, at times drastic consequences.

Black haired Cher. Photo by Elena.

Magic, Hair Styles and Fashion

Common knowledge dictates that fashion changes overtime. Most designers produce separate collections for every season. Interestingly enough, make-up and hair styles also follow la mode (French).

For example, characteristic anime and manga hair is easily recognizable in drawings and other illustrations, while hair color has become bolder with pink, purple grey, yellow and multicolored hairdos sported by celebrities (popular singer Katy Perry, trendy vocalist and Ozzy Osbourne’s daughter Kelly Osbourne, pop star Lady Gaga and rap scene sensation Nicki Minaj, respectively). Of course haircuts also set trends, such as the effect Justin Bieber’s look appears to have had on teen culture.

The images below were selected based on their showcasing of unusual, magical or fantasy hair styles. More pictures grouped according to themes can be found on the artwork index page.

Folklore narrates that Pagan festivities were often linked to magic. As most likely associated with Carmen from Propser Merimee’s so named novel, real and artificial flowers are often used as decoration in hair, such as likewise demonstrated by the Hawaiian traditional Hula costume.

The argument that romantic love was an invention of the West rests in part on the courtly love concept developed in the Renaissance, which differed from, and ran parallel to, one’s likely arranged marriage.

Anime, manga style character with very long hair.

Fashion design is a whole avenue by itself, but the endeavor can be quite complicated as demonstrated bu such shows as Runway Project hosted by international supermodel and actress Heidi Klum, and The Fashion Show. A print similar to those used on clothes. As can be seen from the picture. Illustration, Megan Jorgensen (Elena).

Relationships

Love is at the heart, no pun intended, of most songs and rare are those movies without some sort of love story. While romantic comedies certainly center on relationships, even the most action packed thriller will customarily involve a love interest of some sorts. But what about real life?

Increasingly, people are complaining of being lonely. Some even blame social networking platforms for isolating individuals from one another and hindering social skill development. Notwithstanding, others see it as the exact reverse – pointing to how easy online dating has rendered meeting someone. Still, is it safe? As one online dating site company explained: Meeting new people is potentially unsafe everywhere and anytime, whether online or in real life.

The heart symbol, as represented above, has long become an expression of warmth and affection. Used as pictorial or as <3 in instant and text messaging, as well as chat rooms, it means love. However, cardiologists and other health professionals, or simply persons familiar with the human anatomy, will notice that the real human heart bears little resemblance to the figure. Ironically enough, legend has it that the metaphor was initially derived from the inverted shape of a woman’s behind. Skeptic? Unromantic? Who knows… Image: Copyright © Megan Jorgensen (Elena).

And where else may one meet potential soulmates? One survey showed that work, as well as through friends at parties or double dates, were most often cited. Indeed, social psychologists have long professed that the more social connections one already holds, the more new friends one is likely to make. Does it matter? The answer is a resounding: Yes! Social life and support seems to confer a large number of advantages, namely friendship, companionship, emotional, psychological, occupational and even academic and physical.

Copyright © 2011 Megan Jorgensen. All rights reserved.

Collecting

What Collectors Cavet Most

The latest trends in collecting, from folk art to PEZ dispensers

Collecting is a social pursuit. Different people may collect different things beer cans, fine art, barbed wire, cars – but even the most solitary of stamps collectors likely derives pleasure from knowing that other collectors covet the same stamps he does. Trends in collecting covetry sometimes are based on investment value alone, the classic example being that when an artist dies, the value of his work will skyrocket because the supply has become finite. But trends often are generated by less obvious social forces. Black memorabilia, for instance, is becoming popular as America comes to grips with issues of racial identity. Below is survey of the trends in objects that America desires. It is also, not incidentally, a portrait of the nation.

Folk art: Prices for weather vanes, embroideries, and ships’ mastheads are commanding almost as much as Old Master paintings. At a Sotheby’s auction in early 1994, a Pilgrim period blanket chest sold for $354,500. For portraits, prices are based more on prettiness than on quality or rarity: cute children and young women might go for $100,000 but a dour old man brings less than $2,000.

Outsider art, primitive work done during any period by painters with little formal training, is specially sought after. But the field has seen a small post-recession slump – prices are down, so bargains are out there for the persistent.

Victorian decorative arts: Victorian items – particularly wicker and glass – have seen a resurgence of interest. Victorian furniture from the Aesthetic Revival of the 1870s is commanding top dollar. A single chair sold to a museum for $125,000.

Modern Collectibles: Anticipating Andy Warhol by half a decade, Campbell’s soup in 1905 produced a tin sign that showed a waving American flag made up of soup tins. In 1981, one went for $5,000; it was resold in 1992 for $93,500. Other popular collectibles include Hawaiian shirts, mechanical toys and Pez candy dispensers (first produced in 1952, and then going for up to $2,000). A caveat from Maine Antiques Digest about mass-produced toys, baseball cards, and other collectibles: “Usually, the first one comes out of the attic and it brings a big price. But there were more made – somebody else will see that and other will come out.”

Black memorabilia: Dealers are still getting used to hawking items with potentially negative connotations like ceramic mammies with ingratiating smiles and minstrel-figure mechanical banks that dance for pennies, but with an annual trade show, a magazine (Black Ethnic Collectibles), and an estimated 35,000 collectors in the U.S. alone, black memorabilia has taken off in the last few years.

Recently, some sheet music went for $88, a Dapper Dan mechanical toy brought $522, and African prince and princess dolls made in France sold for $115,000 and $112,000 each. Watch out, though: Increased popularity has inspired a run on reproductions.

Prints: John James Audubon painted all 435 species of birds known in the United States in the early 19th century. A complete set of prints of his paintings ran about $1,000 in the 1830s and has been appreciating ever since, probably since only five sets are now in existence. All birds aren’t equal: A turkey cock could fetch as much as $50,000 today, while $600 might get you a small songbird like the red-breasted nuthatch. Maps are hot, too. Particularly popular are 18th-century maps of America and historical prints especially Old West scenes.

50$ Furniture: High-style furniture by well-known designers like Charles Eames is hot because it’s less expensive. The pieces at a bargain because people are still living with them. Bargains can be found for several hundred dollars or even less.

Collecting memorabilia. Illustration by Megan Jorgensen (Elena)

Painting by the Numbers

A poll discovers what Americans like in their paintings

Animals frolic among the vibrantly hued trees and shrubs as festive folk in old-fashioned garb wander along the shore. Such a scene, according to a recent survey of 1,001 Americans, is the pinnacle of beauty in art. Russian émigré artist Alex Melamid, who conducted the survey with Vitaly Komar and support from the Nation Institute, was surprised by the consensus on what looks good in paintings.

The paint-by-consensus breakdown:

The style should be realistic, with visible brushstrokes, pale and vibrant colors, and thick textured surfaces.

The painting should be simple and relaxing to look at. Please leave out the black, gold, and turquoise as well as the bold designs and sharp models. And no nudes.

The favored size for a painting is that of a dishwasher or of a 19-inch TV set.

We like our scenes outdoors, our figures historical and our subjects secular.

When all is said and done, 57 percent would still rather take the money a painting is worth in cash than the art itself.