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Don’t Adjust Your Thermostat: Why I Don’t Turn Down The Heat at Night

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adjusting the thermostat
I tend to be a bit bullheaded at times. Well, maybe more than a bit, but just because everyone else is doing something doesn’t mean it’s the best thing to do. This is my opinion from my own experience and I suggest you do your own research to find out what works best for you and how your heating bill reacts to different adjustments.

Take the advice that you hear everywhere about turning down your thermostat. Many people turn down the thermostat when they leave for work or are away from home for a day. No one will be there to get cold, so why leave the heater running? It doesn’t make sense to heat an empty house. That’s where I say they’re wrong. It does make sense to heat an empty house because it’s easier for your heater to maintain a certain temperature than to spend an hour or more trying to bring the heat up to a comfortable level. Making your heater work so hard will wear it out much quicker than letting it do its job and maintain the heat in your house.

Set The Thermostat at 68 And Leave It There

I’ve often heard people say they turn the heat down at night. Why? Don’t people get cold at night too? Isn’t night often the coldest time? If you are turning the heat down for your own personal comfort then that’s a personal preference, but if you are turning it down to save money, then I must ask, why? Why suffer being cold for the first hour you are up and about every morning? Why make your heater work so hard to heat up your house? Why not just set the thermostat at a comfortable level and leave it there?

In the winter time, our thermostat is set at 68 degrees. That is our comfort level. Yours may be more or less. If we get chilled, we snuggle under blankets or put on a sweater. If we get hot, we strip down to t-shirts. We have hard wood floors that tend to be cold, so we wear socks and slippers. We also have numerous throw rugs that help to keep our feet warmer.

I’m not saying to put your thermostat at 80 degrees. I know some cold-natured folks that would still feel chilly at 80 degrees. I’m saying that if you set your thermostat to a reasonable temperature, and leave it there, then you can regulate your own body heat by adding or subtracting clothing. By the way, some experts say that 72 degrees is the optimum ambient room temperature in both winter and summer. This philosophy works in the summer too. We set our air conditioner at 78 degrees and leave it there.

Adjust The Thermostat and Let Your Body Adjust

Our heating and air conditioning bills are usually less than our neighbors who have houses that are very similar in size and construction to ours. They, like so many people, adjust the thermostat several times a day according to how they might feel at any given minute. Here’s a novel idea, stop adjusting your environment to fit you and allow your body to adjust to your environment. The human body is a marvelous piece of machinery, it adapts quite well to temperature changes.

No one person is the same when it comes to comfort levels. In an average family of four, at any given time, one will be hot, one will be cold, one will be comfortable and the last one won’t notice the temperature. By setting the thermostat to a reasonable level and leaving it there, each person can adapt by adding or subtracting clothing. Your heater will thank you and perform its job longer and more efficiently because you are letting it do what it is designed to do, maintain a certain temperature.

If you are concerned with your heating bill, try setting the temp just a few degrees less than you would normally set it. Allow your body time to get used to the new setting. Leave the thermostat alone and you might be surprised at your savings.

(Photo courtesy of Geoffrey Fairchild)

How the Government Shutdown Impacts Your Mortgage

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The partial federal government shutdown has complicated life for thousands of Americans and now it has begun to complicate things for homeowners and homebuyers as well. Those looking to get an FHA, VA, or USDA loan can expect delays. Not to mention, if you are one of the 800,000 employees affected by the shutdown, you may have trouble making a house payment.

How the Government Shutdown Affects Homebuyers

The U.S. Department of Agriculture announced it isn’t approving any new USDA loans during the government shutdown. This has the potential to impact tens of thousands of Americans.

In general, people looking for home loans through the United States government will see delays of up to two weeks. However, many industry leaders are still conducting business-as-usual. A survey was taken by a group of 2,211 members of the National Association of Realtors. Around 75 percent of those who responded to the survey said the shutdown hasn’t had an impact on any closings.

The numbers are telling a different story though. Around 25 percent of Realtors said buyers have decided not to go through with a home purchase simply because of economic uncertainty. About 9 percent of Realtors had a client decide not to buy a home because of lost income due to the government shutdown. On top of that, 17 percent said closings were delayed awaiting USDA loans, 13 percent have been delayed because of IRS income verification issues, 9 percent have seen delays in FHA loans, and another 6 percent have seen delays with VA loans.

Support staff at the VA and Department of Housing and Urban Development are unavailable during the shutdown. While the processing of these loans will continue, you will likely have to wait longer than usual. Because workers are not readily available, there is no good estimate of how long the wait might be.

How the Government Shutdown Impacts Homeowners

U.S. government employees experience the effects of the shutdown the most. As many news outlets point out, these employees aren’t receiving paychecks at this time and some aren’t able to pay their bills on time. If this is the case, be sure to contact your loan servicer and explain the situation. The loan provider should be able to provide payment arrangements and alternatives.

  1. Forbearance. One option for government employees without an income during the shutdown is forbearance. This is a type of payment arrangement that helps homeowners during financial hardship. Forbearance is typically granted on an individual basis.
  2. Short-term loans. Although no one really wants to take on additional debt, taking out a short-term loan could prevent you from falling behind on your mortgage. The Navy Federal Credit Union is offering zero percent APR loans for federal employees and active-duty members of the Coast Guard who usually have direct deposit.
  3. Communicate! Overall, communicating with your loan provider is the most important thing to do if you are fearful of falling behind. Speaking with them and keeping communication open can keep your credit score from suffering while you’re out of work.

Mortgage Rate Lock During the Shutdown

If you have been considering buying a home but the government shutdown is making you nervous, you may want to hurry up and lock down the current rate. When the shutdown began on December 22, mortgage rates fell. Although the shutdown is causing problems for many, this is the one instance it could benefit you. Homebuyers have the chance to lock down the current mortgage rate (even if they aren’t able to close until the shutdown is over).

“Our expectation is that this will be a short-term blip and you’ll be glad if you were able to take advantage of the drop in mortgage rates,” said Danielle Hale, chief economist for Realtor.com. The current rates are likely to rise later this year.

Readers, how does the government shutdown affect you? Let us know in the comments below.

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Part 2: This Is How Much Timeshare Ownership Really Costs

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how much do timeshares cost

In 2017, timeshare sales volume hit $9.6 billion in the U.S. That’s a nearly 4 percent increase over 2016 and a 26 percent increase from 2013. But, even if people are buying into timeshares, it doesn’t mean they’re a great value. In fact, as a consumer, figuring out what a timeshare will cost can be a challenge. How much do timeshares cost? Many consumers will be surprised by the answer.

Understanding What You Are Buying

When you own a timeshare, you aren’t actually purchasing the property. Instead, you become one of many buyers who have a stake in the unit.

Timeshare owners buy “intervals” at a specific property. Each interval represents a certain amount of time, usually a week. If you purchase one interval, you “own” the property for one week each year. During that period, you can stay in the unit.

It’s important to note that not all units are sold in one-week intervals. In some cases, the interval is one-tenth or one-quarter of a year, but those aren’t nearly as common as those based on a week.

The Cost of a Timeshare Interval

For 2017, the average sale price of a timeshare interval was $22,180. In the vast majority of cases, this amount is due upfront.

However, not unlike buying a home with a mortgage, financing options are usually available. If that’s the route you choose, it’s important to understand that the interest rates are typically much higher than with a mortgage.

Even though a timeshare is a physical property, it isn’t one that you fully own. If you default on the loan, the lender can’t foreclose on the unit and resell it to recuperate their losses. Since the lender is taking on more risk in these arrangements that other loans associated with physical assets, the interest rate is usually higher to compensate.

On average, 10-year timeshare loans from the resort come with interest rates of 14 percent. However, borrowers with lower credit ratings or loans through specific lenders may reach closer to 20 percent.

If you finance a $22,180 timeshare for 10 years at 14 percent, you’ll pay $344 per month, or $3,440 a year, for the next decade. Over the course of the loan, you’ll pay over $19,000 just in interest. In total, buying the timeshare cost around $41,000.

If you end up with a 20 percent interest rate instead, you’ll owe $429 per month, or $4,290 a year. By the time you pay off the loan 10 years later, you’ll have paid nearly $30,000 in interest alone. That brings the total cost of the timeshare to around $52,000.

But that isn’t all you have to pay for with a timeshare. You’ll have to deal with maintenance fees too.

Maintenance Fees

In 2017, the average maintenance fee for a timeshare was $980. While that may not sound like a lot of the surface, if you consider that most timeshare owners only have access to the property for one week each year, that’s an awfully high price to pay.

Additionally, it showcases precisely how much timeshare resorts make from maintenance fees alone. If every owner has rights to one week a year, that means the property can have 52 owners. If each of those owners pays that $980 fee, that’s a total of $50,960 per year, and that’s only for one unit.

With approximately 1,570 timeshare resorts in the U.S. and 205,100 units between them, the average U.S. resort has about 131 units. Annually, an average resort brings in an astonishing $6.6+ million in maintenance fees alone.

Unlike paying for an interval, maintenance fees are due every year. Additionally, this cost tends to trend upward, so maintenance fees almost always end up more expensive over the long run, not less.

It’s also important to understand that, while the average fee is $980, some maintenance costs are much higher. Some high-end properties have maintenance fees that reach $3,000 or more for one-week interval owners, which many would deem to be unaffordable.

So, How Much Do Timeshares Cost?

Based on the metrics above, while you are paying off a timeshare property and dealing with maintenance fees, the unit costs between $4,420 and $5,270 for a single interval each year. If you only get access to the property for a week (seven days) every year, you are effectively paying between $631 and $752 per night for the 10 years you are paying off the loan on the interval for the unit.

To put that in perspective, the average cost of a five-star hotel in New York is around $362 per night. In Florida, the average is $336 for a five-star hotel, and Nevada, the home of Las Vegas, comes in at $239 per night.

Plus, when you buy a timeshare, you might not gain access to features you would get at a hotel. While the units often have full kitchens, something that may help you save on meals, not all of them do. Additionally, benefits like a continental breakfast aren’t always part of the package.

Housekeeping may also be somewhat limited at timeshares during the course of your stay, and you could be responsible for specific tasks like taking your own garbage to a dumpster on the property or putting used dishes in a dishwasher on your last day. While this isn’t always the case, you have to read the fine print to make sure. Otherwise, you could be stuck with a fine for failing to adhere to the rules.

Concierge-style services can also vary, so the amount of support you get from the organization operating the timeshare property may not rival area five-star hotels either.

Cost Over Improvements

Now, once you spend a decade paying off the timeshare loan, the cost per night at the timeshare does drop to $140, based on current average maintenance costs. However, that amount will likely increase every year, and you may not see any amenity offerings improve over time.

Ultimately, the cost of a timeshare is usually significantly higher than paying for other forms of accommodations, at least during the time you are paying off the loan. Plus, you are often locked into a particular property and possibly even a specific week each year.

If you aren’t able to vacation during that time or at that location, you don’t get your money back. Instead, it was simply wasted that year. If you can’t imagine practically tossing $4,400+ out a window if you can’t make it, then a timeshare probably isn’t right for you.

Stuck in a Timeshare?

If you are stuck in a timeshare and want to get out from under that burden, we recommend contacting Newton Group Transfers at 1-888-549-4154. They are a timeshare exit company with a stellar reputation and have been helping timeshare owners since 2003. They are also A+ rated by the Better Business Bureau (BBB) and were recently named finalists for the BBB Torch Award for Ethics.

How much do timeshares cost? Did you know before reading this article?  Tell us more in the comments below.

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Living on Campus vs Commuting: Which is Cheaper?

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Living on Campus vs Commuting
The price of college tuition is startling and, frankly, stressful for many parents and teens headed to school. That is before they even begin to consider the cost of housing in college, which exceeds $10,000 at many public universities in the United States. What is the difference between living on campus vs commuting when it comes to cost?

How Much Does It Cost to Live on Campus?

The main expense when it comes to living on campus is room and board. This usually includes your lodging and a meal plan for the year. For public colleges and universities, the average room and board fees are $10,440. Private schools charge around $11,890 for room and board, on average.

There is potential for saving money here though. You can pay less for fewer meals each week. Most of the time, college kids don’t even wind up using their meal plans anyway.

Other Miscellaneous Costs of Living on Campus

  • Room and board costs don’t cover 365 days of the year. Dorms oftentimes close during holidays and school breaks. Some schools won’t allow you to stay in the dorm and, if you do, it will cost additional money.
  • If you are aiming to go home over holidays and breaks you’ll also need to budget money for the trip home, whether you’re flying, driving, or taking another type of transportation.
  • Living on campus requires you to spend money on things like sheets, pillows, toiletries, desk and school supplies, hampers, and other items you’d otherwise have in your home. You may also need a mini-fridge, TV, or bed. These things can add up quickly.
  • Students moving from one extreme climate to another may also incur significant costs when it comes to preparing their wardrobe. Moving to a colder climate will require purchases like winter coats, snow boots, gloves, hats, sweaters, warm socks, etc.
  • Although there are free events on campus, there may be some social expenses as well. You may need to pay dues to join a fraternity or sorority. It is also possible you may want to go off campus for social events that may come at an additional cost as well.
  • Most schools also require you to pay a fee for parking on campus. Depending on the school, this can cost hundreds of dollars per year.
  • The school may also require you to pay a health fee for providing on-campus health care.
  • You will have an additional line underneath your room and board costs for technology as well. This covers the WiFi, computers, and other available technology on campus you can use.

With each of those costs in mind, students and parents often consider taking out additional loans to cover these costs. However, you should carefully consider the total cost of the loan after interest before taking one out for sorority dues and other miscellaneous costs.

Living on Campus vs Commuting: What They Don’t Tell You

While living on campus may seem expensive, unless you are continuing to live with your parents, commuting is just as much a burden when it comes to your finances. Commuters who rent their own apartment have to stress about paying rent each month. They’ll also likely need to hold a job, spend money on gas traveling to-and-from school, and buy their own groceries. However, if you are planning to stay somewhere off campus free-of-charge and bring your lunch each day, you could stand to save some serious cash.

One spectacular example of this is Katie Thompson. Thompson bunked with family members and lived off campus her entire college career. She paid off her small student loan (only $5,500) within two years of graduating. While she acknowledges that living off campus may have had an impact on her overall experience, Thompson said she can’t argue with the financial stability it has provided her in adulthood.

All in all, deciding between living on campus vs commuting will depend on your own personal needs as well as your financial standing.

Readers, did you live on campus in college? How much did you pay?

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Is It Still Cheaper to Rent Than Buy a Home?

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Is it still cheaper to rent than buy a home

Although the U.S. Federal Reserve has just indicated that it may step up the pace of interest rate increases,  there has yet to be any indication that changes in mortgage availability might change how people decide whether to buy or rent homes.

Choosing whether or not to buy a home is a serious decision. It’s a substantial financial investment. The median home value in the country is around $215,600, and that number is expected to rise by about 6.5 percent over the next year.

But the median rental rate is also substantial, coming it at around $1,650 per month. This means that remaining a renter can also be costly.

Where It’s Cheaper to Buy

However, there are still several cities where it’s cheaper to purchase a home than rent — and in some cases, the savings are so profound, it might even be worth relocating.

One example, according to MarketWatch, is Pittsburg: The average rent is over $1,200 per month, but your monthly mortgage payment would come in less than that due to the overall price averaging less than $150,000.

Another great city for homebuyers: Tampa, Florida, where renting costs at least 80 percent more than buying in most locations.

Believe it or not, even Orlando, Florida is a better place to buy than to rent; it costs twice as much to rent than to purchase a home.

Still, other cities where it’s cheaper to buy: Boston, Detroit, Miami, Philadelphia, Cleveland, Kansas City, Cincinnati, and Houston.

Other Costs for Buyers

However, the decision on whether to buy or rent shouldn’t just concern the property’s sale or rental price, as there are other expenses that come with buying a home.

Appraisals

Usually, you’ll need to pay for an appraisal, which normally runs between $300 and $500. On top of that, you’ll need a home inspection, which typically costs a similar amount.

Property Taxes

Homeowners are also responsible for property taxes. Since property taxes are paid upfront in six-month increments, you may need to reimburse the seller for taxes between the date of closing and the next tax period.

Homeowners Insurance

Additionally, you might have to pay for a year’s worth of homeowner’s insurance in advance, depending on your lender or insurance carrier.

Closing Costs

Closing costs are another expense. Typically, they amount to 2 to 5 percent of the purchase price.

Mortgage Principal and Interest

The biggest ongoing expense of buying a house is the mortgage payment. If you use a loan to finance your purchase, you’ll be paying that debt down over the course of 15 to 30 years, unless you work to pay it off faster. This means you are also paying interest, which is based on your creditworthiness.

Private Mortgage Insurance (PMI)

If you aren’t putting 20 percent down, then PMI is an additional expense you’ll be shouldering. This protects the lender should you fail to make your payments, requiring them to foreclose on a property that is upside down. It’s a monthly expense, tacked onto your mortgage.

Escrow

Often, your lender will also open an escrow account associated with your loan. Typically, this collects additional funds for property taxes and homeowner’s insurance payments. The amount needed to fund the account is attached to your mortgage payment, ensuring you don’t miss a payment or drop your policy.

HOA Fees

If you live in an area with a homeowner’s association (HOA), there’s usually a monthly or annual fee that you’ll need to cover.

HOA fees can vary dramatically, as they only apply to a single community. In some cases, the fee may be $20 a month. However, homes on golf courses, in resort-style locations, or areas like New York City may have monthly HOA fees over $500.

Utilities

You also need to factor in utility costs, especially if you are looking at purchasing a larger home. As a homeowner, you are directly responsible for electricity, water, sewer, garbage, and natural gas, depending on which are on your property. The only exception is with some HOAs, where the association may handle some or all utility costs.

Maintenance

Beyond your mortgage payments, you also have to plan for home maintenance. Unlike in a rental situation, if something breaks in a house you bought, you’re probably on the hook for any repair costs.

Repairs and Upgrades

Plus, you’ll need to plan for significant repairs or upgrades, like replacing the roof when necessary or updating your attic insulation.

Most experts recommend setting aside at least 1 percent of your home’s value each year for repairs and maintenance. However, aiming for 3 percent is wiser, especially if you know a large expense (like the roof repair above) is on the horizon.

Rental CostsIs it still cheaper to rent than buy a home?

In most cases, the cost of renting a home is substantially easier to calculate. Generally, you’ll be responsible for a monthly rent payment and renter’s insurance.

Often, the rent amount is over what you’d pay for a mortgage on a similarly sized property — but that’s because you aren’t directly responsible for a variety of other expenses (at least not directly), which are broken out above.

Landlords generally pad the rent to make sure that they can manage repair costs and make a profit. In some cases, utility costs are also part of the rent amount if they included.

Do the Math

If you want to figure out if it makes more sense to rent than buy, you’ll need to do some math. Begin by reviewing all of the expenses associated with purchasing a house in your desired budget.

Make sure you include the mortgage payment (including interest, PMI, and the escrow account), maintenance costs, utilities, and HOA fees. Also note any other costs that have to be paid upfront, like appraisal fees.

Next, find a similar rental property. Add the cost of rent, renter’s insurance, and utilities. Then, compare that number to the one associated with buying a home.

So Is It Cheaper to Rent Than Buy?

Ultimately, by making the comparison, you can determine whether it makes more sense to rent or buy in your current area at this specific time. In some cases, you’ll discover that homeownership may be cheaper. Adding to the cost benefits, you get to build equity, which is a nice bonus.

However, renting can be a better financial choice in some cities, so don’t assume that buying always wins out.

Also, market conditions can fluctuate: Even if buying is better today, that doesn’t mean it will be a year from now — for instance, it’s possible that the continued ascent of interest rates might eventually bring about a softening in home price inflation.

If you don’t intend to move forward quickly, you’ll need to look at the calculations again when you actually get ready to buy.

Readers, how have you grappled with the decision to rent or buy? Tell us about it in the comments below.

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Lawn Care for Extreme Summer Weather

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<img src=" Lawn Care for Extreme Summer Weather.jpg" alt”housewithfrontyardshowinggrass">

Extreme summer weather can wreak havoc on your lawn if you don’t change the way you care for it. You might actually be forced to do something different: For instance, if you live in an area susceptible to drought, local ordinances on water rationing might actually prohibit you from watering your grass.

In some cases, you may even need to revamp your lawn entirely — that is, replant a different variety of grass that can better changed weather conditions.

Preparing your lawn for the kinds of extreme weather conditions that tend to affect where you live — this usually won’t require much work.

Heat Waves, Droughts and Wildfires

Before summer 2018 even officially started, numerous parts of the country already experienced record high temperatures that qualify as heat waves. All forecasts have called for above average temperatures this season.

High temperatures don’t necessarily indicate that a water shortage will occur, but it doesn’t hurt to plan for that possibility.

For example, allowing your grass to grow a little longer can help it retain water. Plus, it creates some of its own shade, helping to keep the ground cooler and lessening the negative effects of evaporation.

However don’t grow it longer if your area has had wildfires in the past.

You might also want to skip fertilizer in periods of extreme heat, it can cause damage.

Watering Strategies

When you do water, make sure to do so only during the very early morning hours — when it’s cooler out, more moisture can be absorbed.

If your area has experienced droughts in previous years, consider updating your landscaping toward more of a desert look, possibly eliminating as much of the grass as possible.

Otherwise, refer to your local ordinances to find out your watering schedule. Then, follow it closely, watering on all of the days you are allowed.

Ideally, you want to use an irrigation system and not sprinklers. Sprinklers are less efficient, so not all of the water may make it into your lawn.

To minimize the risk of fires, clear out brush as regularly as possible. Additionally, if any of your plants die or turn brown, remove them immediately. You also want to rake up fallen leaves and dispose of them. All of these things add fuel to fires.

Hurricanes, Storms and Floods

Hurricanes, tropical storms, and even floods can quickly lead to soil erosion. As the soil is washed away, it destroys your lawn.

Conversely, if you can take steps to thicken your lawn and make it healthier, that will increase the chance it will survive the onslaught of water.

As early in the summer season as possible, fill any bald patches with additional grass. Also plant roots help keep the soil in place so it won’t erode.

You may also want to allow your grass to grow longer before mowing it. This allows the roots to also grow deeper, providing more stability to the soil.

Lawn Care for Extreme Summer Weather

By following the tips above, you can maintain a healthy lawn regardless of any extreme summer weather conditions.

And by starting now, you may even be able to prepare in advance, giving you a head start this year.

Readers, how has the summer sun been affecting your lawn in recent seasons? Do you have other any tips for protecting your lawn during extreme weather?  

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