People are always looking for a perfect business opportunity that would produce an oversized ROI and put a big greedy smile on their faces. I’m one of them. I do my daily routine of reading in quest for the tips and hints that would push me up the financial ladder. Sometimes I succeed, sometimes I fail. In this constant chase I often forget what is really most important to me in life, my loved ones. I often forget my wife’s birthday; I never remember my wedding anniversary or the mother’s day.  And suddenly this thought occurred to me: why don’t I start each day with thinking about my family? It will take a few minutes every day. After all, this entire struggle to succeed is for them.  As I sip coffee in the morning I can think of the most important investment I can make, a rose for my mom at her birthday or a bunch of roses for my wife on our wedding anniversary…

What is the ROI on this one?  Just  little things, like happiness and smiles…

HUD homes can be very cheap. When a homeowner with a HUD insured mortgage can’t meet the payments, the lender forecloses on the home and HUD pays the lender what is owed. HUD takes over the ownership of the home and will sell it at market value.

No cash-out versus cash-out refinancing

No cash-out refinancing occurs when the amount of your new loan is not higher than your current mortgage debt (including closing costs). Typically, you can borrow up to 95 percent of your home’s value.

A cash-out refinancing occurs when you borrow more than your current mortgage debt. In such a case, you can usually borrow no more than 80 percent of the appraised value of your home. Any extra money remaining after you’ve paid off an existing mortgage can be used in as you see fit.

Cash-out refinancing has some advantages, because the mortgage interest rate is usually lower than the interest rate on car loans, personal loans, or credit cards. In addition, the interest paid on your refinanced mortgage is tax deductible.

There are downsides as well. Your refinanced mortgage is secured against your home. If you don’t make the mortgage payments, the bank can foreclose on your home. Lenders such as credit card or automobile lenders can’t take your house away.

If the rate on a new mortgage would be lower that what you pay now, refinancing is a good idea.