Refinancing vs. Buying Another House

Owning a home is a major financial commitment. Aside from the cost of house maintenance and upkeep, there are the monthly mortgage obligations. If you are a new home buyer, you’ve the cost of shopping for a home and making a deposit. To help facilitate expenses or enhance living conditions, refinancing an existing mortgage or selling and moving to another house can be good options in certain scenarios.


One of reasons for looking into refinancing or moving is an alteration in the household. The coming of children generates a demand for extra space. On the other hand, when older children move out a couple’s house abruptly can be overly big. Another reason to refinance or purchase a new house is to benefit from changes in the home market, specifically to acquire a lower mortgage interest rate.


When it comes to refinancing, a new mortgage might have a fixed or an adjustable interest rate. Adjustable rate mortgages, or ARMs, are best for homeowners who intend to sell their house within a few decades, before the interest rate on their loan adjusts upwards. Purchasing a new house provides you the option of updating, or downsizing. Transferring to a similar house in a more convenient location might not have a substantial financial impact, aside from a new mortgage fee and also the down payment and loan closing costs.


Refinancing when reduced interest rates are accessible is generally a good idea for homeowners who face financial stress, an uncertain job future or extra debt. Cash-out refinancing allows homeowners to combine non-mortgage debt into a new mortgage, making it easier to create monthly payments without even letting accounts to fall into delinquency.

Market Factors

Purchasing a new home to take advantage of a market where prices are reduced or to lock in lower interest rates can be a larger financial risk since there’s no way to be sure that interest rates and house values won’t continue to fall. But homeowners who see that the value of their home increase could possibly have the ability to understand the greatest profits by selling and purchasing a new house in a place where the market is less inflated.


In the end, the choice between refinancing a house and purchasing a new one has to do with life in addition to finance. Homeowners who plan to remain in an existing house for many years or face financial strain are generally better off insolvency. On the other hand, homeowners who need a bigger or smaller house, or one at a different location or with various features, should consider purchasing a new house only when they can manage it.

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Prime Rate Change Background

The prime rate is published by the”Wall Street Journal,” considered the official business newspaper of the USA. The speed itself is dependent on polling what the nation’s 10 largest banks charge in interest for short-term loans. After seven of the 10 banks polled change their short-term rate of interest, then the prime rate varies. Since Dec. 1, 1947, the prime rate has been part of this financial landscape and has fluctuated with good times and bad times in the USA.

The Inaugural Rate

According to the”Wall Street Journal,” the first prime speed recorded was 1.75% on Dec. 1, 1947. At the moment, the WSJ polled the country’s 30 major banks for their short-term interest rates and then changed the prime speed when 23 of them changed their prices. Financially, the article World War II US economy was secure and the prime rate rose gradually, generally by no more than half a percentage point at one time. It reached a then-high of 8.5 percent on June 9, 1969, and then began a slow drop until 1971.

Dual Digits

It took 22 years to get the prime rate to reach 8.5 per cent for the very first time. It took only four years–from 1969 to 1973–to allow this to happen again, as the prime rate hit 8.5 percent on July 18, 1973. But this time, rather than heading down, the prime rate kept rising, a product of this volatile US economy of the 1970s, that comprised a gasoline crisis. The prime rate hit 10 per cent for the first time on Sept. 18, 1973, 27 years after the speed was first indexed by WSJ. After dipping below 10 per cent for a brief time in 1974, the speed went back about 10% on April 11, 1974, and remained above 10 percent for almost a year, attaining a then-high of 12 percent on July 8, 1974.

Twenty Percent

The prime rate ballooned from 1978 to 1985, remaining above 10 percent and scaling heights that the speed had never eclipsed before. The speed hit 10 percent on Oct. 13, 1978, and it rose steadily until it reached 20 per cent for the first time on Dec. 10, 1980. Just nine days later, the prime rate reached its all-time large in 21.5 percent on Dec. 19, 1980. The rate stayed above 20 percent until it dipped to 19.5% on Feb. 3, 1981. The prime rate reached 20 per cent for just one other period, from May 19, 1981 to July 8, 1981.

Back to Single Digits

The prime rate needed four more years to recover to its pre-1970 levels. On July 18, 1985, the prime rate dropped out of double digits and down to 9.5 percent. The speed slipped back to double digits for the last time on Aug. 11, 1988, and stayed there until it slipped straight back to 9.5 percent on Jan. 2, 1991.

Pre-1960s Levels

During the economic boom of the 1990s and early 2000s, the prime rate dipped to levels the nation hadn’t seen since the 1950s. On June 22, 2003, the prime rate increased to 4% for the first time since Sept. 11, 1958. On Dec. 6, 2008, the prime rate dipped to 3.25 per cent, despite the country’s economic recession. This has been the lowest prime rate since Aug. 4, 1955.

Totals and Averages

The”Wall Street Journal” keeps totals and averages to the prime rate, and notes that the average prime rate is 9.842 percent and that the median prime rate is 8.75 percent. Also, the prime speed’s most frequent valuation is 7.5 percent.

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How Rent-to-Own Works

Rent to own or lease to own is an alternate route to home ownership and a different method to sell a house. Rent to own contracts allow buyers some flexibility at a house purchase and qualification. A home seller might be able to get a higher cost for a house by supplying a lease to own option.


A rent to own home contract unites a house lease or rental with the option to purchase the house during the term of the lease contract. The buyer pays periodic rent payments during the term of the lease but can purchase the property at a predetermined price before the lease contract terminates. The vendor of the house usually receives an upfront deposit to lock in the purchase option.


A rent to own contract is usually set up using a one- to – three-year lease interval. The buyer pays an upfront fee and makes periodic rental payments. The upfront fee and some of the rental payments go toward a down payment on buying the home. The cost of the home is set within the rent to own contract, and the buyer knows just how much of a deposit she can accumulate during the lease period of the contract.


Rent to own permits buyers with no credit, poor credit or little cash for a deposit to enter into a purchase contract. The rent to own permits the buyer to set a stable payment history, accrue a deposit and equity in the house if the value rises above the contract purchase price. These factors make it much easier for the buyer to be eligible for a regular mortgage once the rent to own contract ends. The seller receives a buyer in what may be a difficult real estate market and regular rent payments before the home is actually sold.


The buyer in a rent to own contract needs to be able to acquire more-conventional home financing before the contract expires. If the house cannot be purchased the upfront deposit and rent credits toward the purchase will be forfeited. The vendor will still own the house if the buyer can’t fulfill the contract but will be able to keep the buyer’s deposit and re-lease the house. If the house worth goes up appreciably during the rent to own lease, these profits will go to the buyer, not the seller, in the event the renter ends up finishing the purchase.


A rent to own makes the most sense to get a buyer with some credit problems but will be able to clear up those in a year or two and be eligible for a conventional mortgage. The rent to own additionally allows the buyer to find out if he actually likes the home and neighborhood before purchasing it. Lease to own is fantastic for a vendor who is having trouble selling the house using conventional procedures. An investor using a several homes can also utilize lease to own as a way to be able to sell the homes at attractive rates and earn money along the way.

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Guest Groups: Showstopping Side Tables

I started searching out the perfect side table while redecorating my living area recently. My preference generally runs across the simple side, but I could not help but notice all the excellent statement side tables available. If you’re feeling bold and want something a bit more exciting, you’re going to adore this assortment of showstopping unwanted tables. — Danyelle from Dandee Designs

Pebble Side Table – $149

If you’re drawn to earthy substances, you’re going to adore this Pebble side table.


Truss Side Table – $398

The mix of materials within this side table will make it easy to fit in almost any decor. Glass, metal and wood may look like traditional materials, but when they’re used together in a nontraditional design, you’ve got yourself a statement piece.


Luck Side Table – $199

This side table will add just the correct amount of color to a modern space.

West Elm

Organic Tree Stump Side Table – $249

I am so drawn to this tree stump side table. It would also produce a wonderful impromptu stool.

Pottery Barn

Ludlow Trunk Side Table – $399

I really like every time a piece of furniture acts as a conversation starter. You can make certain your friends will want to find out more about this trunk table.


Alfresco Natural Side Table-Stool – $169

So sleek with its clean lines, this modern side table would also look good on the terrace.

Room & Board

Hull End Table – $399

The color of this side table will blend into your decor, but the shape will keep it from going unnoticed.

West Elm

Faceted Mirror Side Table – $199

Including a tiny sparkle not hurt a space. This mirrored table will reflect light around your room and keep anyone under 2 feet tall amused for hours.

West Elm

Layered Side Table – $149

There is something spacey about this side table, but I still love it!


Driftwood Round Side Table – $399

This side table is so natural and lovely. It’s among my favorites for sure.

Pottery Barn

Keaton Smart Technology Side Table – $499

In case you’ve got a lot to store, this is the dining table for you.


Peekaboo Clear Low Side Table – $99.95

Now here’s a table that will let your layout eye shine through.

Restoration Hardware

Blackhawk Side Table with Drawer – $1,790

This is definitely the most unusual facet table I came across. Can not it look great in a kid’s space?


Ginger Salt Side Table – $299

A pretty pentagon? Who knew such a thing existed?

Urban Outfitters

Factory Side Table, Yellow – $59

Metal is my favorite material, so it’s easy to see why I had been drawn to this brightly colored side table.

Urban Outfitters

Flourish Storage Side Table, Green – $49

Have a decidedly feminine space? This side table is beautiful and certainly appeals to the woman in me.

Restoration Hardware

1920s French Steel Side Table – $195

A whole lot of people like the appearance of vintage and classic pieces but have a challenging time locating them, particularly in metal. This absolutely obsolete reproduction would fit right in my family room.


Scroll Side Table, Black – $148

I am able to see this side table being used on a terrace to hold a cup of tea or from the front door as a place to toss sunglasses and keys.


Color Pop Woven Side Table – $89

Poufs have been in existence for a while, and they create great casual side tables. I really like the bright colors on those displayed here.

Room & Board

Magazine Table – $239

Functional and beautiful furniture speaks to my organization-loving heart. This bit is a personal favorite and would look great just about anywhere.

More: DIY Side Table With a Novel Twist

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Guest Groups: Glam Camping Style, Minus the Camping

Glamping (“glamorous camping”) is now a popular fad for those who don’t prefer to rough it. But who says you need to leave the comfort of your home to enjoy a little bit of rustic, rustic design? Try bringing the fantastic outdoors inside this season with some of those stylish and “campy” accents. — Becca from CAKE.


Yakima Camp Blanket – $88

A Pendleton blanket would be the ultimate for camp-style comfort. Its patterns would be ideal as a living room throw.

West Elm

Natural Tree Stump Side Table – $249

I love this end table created from a tree stump. A pair of them could even double as additional seating.

Layla Grayce

Ikat Tufted Wool Rug – $348

Ikat rugs often mirror natural patterns found outdoors, and this one feels just like a campfire.


Akimbo Bench

If you are considering cozying up to the fire, how about cuddling on a hand-carved wood seat similar to this?

Hanno Weber & Associates

Weber® Fireplace Grill

This fireplace may not belong inside, but it’s a modern and portable alternative to a firepit for your lawn. S’mores anyone?


Childrens felt CampFire with 4 logs by Puggle Hollow – $45

Or you may just “light” a pretend fire inside with felt!

Pottery Barn Kids

Camp Bunk Bed – $1,299

What seems more like camp than a bunk bed?

The Land of Nod

Brown Plaid Flannel Sheet Set – $89

A pair of plaid flannel sheets such as these can turn a bedroom into a den.

The Land of Nod

Camp Throw Pillow, Racoon – $29

This raccoon pillow is priceless — and much more huggable than the actual thing!

Pottery Barn Kids

Camping Lanterns – $44

These colorful figurines are sweet accent pieces that will be so much fun to get an indoor sleepover.

Rosenberry Rooms

Pink Stripes Teepee, Tents & Teepees – $210

Can there be anything more fun than owning a slumber party within a tepee?


Island Bay Northshore Large Rope Hammock – $71.74

Have you ever considered placing a hammock inside? Dressed up with cushions in the corner, it’ll be a cozy corner to see and relax in.

Urban Outfitters

Mociun Mandala Pillow – $49

This colorful pillow is reminiscent of an archery target.

Home a la mode

Bait and Tackle Towels – $26.99

Bait and tackle flour towels bring a rustic nod into the kitchen.

Significant Supply Shop

Stansport Enamel Coffee Pot – $18.95

A classic enamelware coffee pot makes a fantastic brew inside or outside.

Grand Canyon National Park, Bright Angel Point Poster – $19.99

This beautiful print keeps you yearning for the next adventure.


Thymes Wildwood Bitter Orange & Cedar Candle

Breathe in the scent of cedar and you’ll always have the woods near hand.

The Land of Nod

Warden Deer Head Wall Decor – $39

Oh, deer! This is so cute, and I love that there is no damage done when mounted onto the wall.


1920s Vintage Summer Camp Signal by Zietlow’s Custom Signs – $14

Vintage wood signs similar to this one add extra character to any space.

Salmon Falls Canoe

16′ Clearwater Canoe

Canoes are convenient if you live near water, but if you have the space, why not hang one from the wall to get a tiny lakehouse style?

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Guest Picks: Coral Kitchen Accessories

Coral is my favorite hue right now, and I think that it’s just ideal for the kitchen. It is invigorating, hot and appetizing all at one time! Fortunately for me, it’s also on trend, therefore I can shop easily for stunning coral accents to decorate my kitchen and dining room. Listed below are my favorite finds. — Marie out of Food Nouveau

Heath Ceramics

Appetizer Set – $120

This gorgeous appetizer set would look equally as good inside serving refined cocktail bites as it would outside serving condiments for an informal barbecue.


Marimekko Kivet Orange and Berry Paper Beverage Napkins – $4.95

Marimekko is producing some of those best-looking napkins right now. Their straightforward geometric patterns are striking, and this daring pattern of large coral circles over a berry backdrop is no exception. They’re summer ready!

West Elm

Owl Measuring Cups, Coral – $19

I’ve been eyeing these Owl Measuring Cups, that are cute enough to be left out on display. However, the coral color? I’m in love.

West Elm

Clinton Friedman Melamine Plates – $4.50

How striking are those botanical plates? They’re made of unbreakable melamine, which can be just so practical. A grilled peach salad topped with a dollop of whipped cream would appear heavenly on them.


Coral Dip Bowls with Bamboo Serving Tray – $11.99

Coral bowls. Dips. Cocktails. Summer on the terrace. Enough said.


Coral Chip and Dip Server – $11.99

The larger plate is wide and shallow enough to behave as a menu, although the smaller would be ideal as a dipping bowl. Together, they make to your best-looking chip and dip serving set ever.


Red Stripe Tablecloth – $98

This tablecloth is labeled as red, but I feel that the neutral tone of this linen softens the color and turns it quite near the coral shade that I love so much. And linen makes your dining room instantly feel more tasteful.


Underwater Sea Coral Collection Series C by Pixie Pixels – $38.85

Coral prints grouped together make for a super cheap kitchen makeover.


Coral Nesting Bowls from Karin Lorenc

These colorful, handmade nesting bowls will brighten up any table.


Tea Towel with Coral Spring Flower Design by Alice Potter – GBP 12

Gorgeous tea towels allow me love the dishwashing chore. OK, not actually, but why use a dull tea towel when you can have one that is so good looking?


Salt and Pepper Bowls by Paulova Ceramics – $34

Do not salt and pepper bowls instantly make you feel like a chef? These glazed bowls could make a lovely host or hostess gift.


Potholders, Natural, Algae Printing by Appetite Home – $18

Here’s another amazing combination of linen and coral which would look great as potholders or as trivets onto a color-coordinated dining table.

Fine Little Moment

“Nail-Polish” Cutting Board – EUR 37

Bring out your girly side in the kitchen with this particular bright cutting board. It is called “Nail Polish” — love it!

Brook Farm General Store

Tourne Coffee Cup, Terracotta – $18

These handmade ceramic coffee cups, in a more neutral shade of coral, make me want to curl up in a comfy seat and watch the sun come up on a gorgeous summer morning — over a pond and all. I can dream, can not I?

Pigeon Toe

Banded Bedside Carafe – $84

Bedside carafes are a tradition that takes you to a different era, but the appearance of the one surely brings you to 2012. I would gladly use it as my work desk water carafe or as a lemonade waiter on the terrace.


Chalkboard Spice Jar, Coral – $10

This wins first trophy in the adorableness class! I would use it to save my spices, specialty components or just the bits and pieces that crowd my countertops and kitchen drawers. It is seriously irresistible.


Mellow Coral Apron – $36

I’ve said it before and I will say it again: Aprons do not need to be dreary and dull. You might even need to maintain this one on as a fashion statement when your guests arrive.


Solange Nut Bowl, Coral – $12

I collect small, eclectic bowls, and I would love to add this one to my collection. It would be ideal to serve something that’s a bright, contrasting color, like pistachios.


Buttering Board, Coral – EUR 17.50

A versatile buttering plank which you can use as a coaster, trivet or modern functioning plate — why not? Group many collectively for a dramatic effect on the table.


DII Coastal Coral Variegated Weave Napkin – $18

Yes, I still believe in fabric scraps — for special events, at the least. These woven cotton napkins will brighten the room.

Next: How to Select the Right Coral Paint

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