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Show (BeS going obi financial sense. Do you use your savings, or get a loan? borrow against your home, or credit cards? If you choose a home loan, what is better, a second mortgage, or an equity line, and how do the two differ? Is a refinance loan better, or is keeping your own low rate intact the answer? Fortunately, a few simple questions can determine the best option for you. These questions are the same for everyone, but answers can differ. Okay, we're already seven days into 1999 and its high time to get those New Year's so Resolutions out of way go ahead, grab your pencil and paper. Now make that list of all the things you are , really going to accomplish this year. Don't be shy, it's a brand new millennium! It doesn't matter that you had the same list for 37 years and haven't made it past February before quitting that's all in the past. This will be next thousand-year- s different. This time you can do it! This time, you will succeed! (at this point, you should be hearing the theme music to "Rocky") ' Finished? Somewhere between the lose weight, exercise more, become a nicer person, climb Mt. Everest categories, you might have a goal that requires some extra cash. Perhaps you intend to take a vacation? Remodel your home? Consolidate your debts? Or make an investment? If so, this week's column can assist you. The problem arises in attempting to determine the source of the money that makes the best financial Do-yo- j, ' I MORTGAGE LOANS u Year's resolutions Nfew on a loan. ! lowest interest rate. If the interest rate and fees are lower, then refinancing is always better than paying higher rates on credit cards or car loans. It stands to reason, that the lower the interest rate, the quicker you can get out of debt.Therefore, even if you select a mortgage term, it will not increase the time it takes to pay off your debts unless you choose to lower your monthly payments. Therein lies your choice; maintain your new payment to equal your current payments and pay off your debts quicker, or reduce mortgage Equity loan vs. credit cards. An equity loan typically offers an interest rate much lower than credit cards. the term can be longer, which lowers your minimum monthly payment. When possible, it is cheaper to transfer all credit card debt to an equity line. In addition, the interest is tax deductible. Also, Mark Greer loan has been well thought, and the only question is to which type of loan offers the best terms. Let's look at 3 possible BEFORE DETERMINING the best option, you should first seriously consider whether or not you really need the loan. Although using your home as security makes better financial sense than most other loans, one should never use the equity in the home as a solution to poor budgeting practices. The statement that "what you borrow must be paid back" might seem obvious, but it is alarming just how many consumers give no to their ability (or possible inability) to pay back the , solutions: Using your savings. If v the funds you require are a few thousand dollars or less, and you intend to replace the savings within a short period of time, then this is likely your best choice. The only question to ask is whether the interest you lose on the savings is more than the loan interest would cost. If you do not have the ability to replace the savings in a short period of time, it is likely you could earn more on the invested savings than you would pay ; fore-thoug- debt. Next week's column will discus this topic in greater detail, for now it will be assumed that the need for a 30-ye- Refinance with cash out. This is a simple refi- nance of your first mortgage with a new loan amount , greater than the balance of your current loan. If your mortgage balance is now $125,000, and you need an additional $35,000, your new loan would be for $160,000. At closing, your old loan would be paid off, and you would receive the difference. The money is not restricted to home improvement or debt consolidation, so you can use the money as you choose. DOES IT make sense to increase your mortgage? From a financial standpoint, a mortgage is and will, usually offer the e, your monthly payment, increasing you monthly cash flow. Either way can benefit you. Next week, this column will detail several specific examples. In the meantime, if you would like an analysis of your options, I would be happy to take your call at the number listed below. Mark Greer can be reached atAtherton Mortgage, in Jamestown Square, Provo, or by calling him at 898-633- . Newer thermostats alleviate need for creative rigging By KEN SHEINKOPF Knight Ridder Newspapers Q. I want you to know how on target you were with your article about heat affecting thermostat settings. Many years ago when I got married, we lived out West in a place thermowith an stat. We liked to keep our home cool in winter while we slept but warm in the morning when we got up, and there wasn't such a thing as a setback thermostat then. I rigged up a small night light and timer so that the light hung about 3 inches below the thermostat, and I set the timer for just before our bedtime. When the light went on, its heat activated the thermostat so the heater went off. The timer then turned the bulb off at 5 a.m. and the heat went back on. What do you think about this idea? A. I like it. It certainly shows how easy it is for heat from lights and appliances to throw a thermostat out of whack. It's amazing how little I fans and other things we take for granted today. Instead they used strategies that kept their buildings comfortable without mechanical or electrical equipment. Take the simple concept of daylighting, for example, I recommend it often as a way to cut down on the use of electric lights and a way to make homes feel more comfortable. In ancient Greece, though, it was the main way of bringing light indoors, so buildings had lots of open spaces, big win- HOME ENERGY Q& A things we often don't think about can have such an impact on our lives. Thanks for the tip. Now that stores carry thermostats, people might prefer them over your homemade system, but the principle is still the same. set-bac- k ., Old principles remain Q. I thought you would like this. I was reading an old book on ancient Greece and saw several pictures of buildings that seemed to be following all the procedures you recommend for energy efficiency. I guess everything comes around again and again. What do you think? A. I think you're right on target. Many of the principles that guide the design of homes are built on the proven designs of ancient civilizations people who lived without heat, air conditioning, electric lights, seiling and other features to let the light in. Entire cities were built to take advantage of the sun and the climate. Drawings of Roman ruins have shown evidence of bath houses and villas that used the sun for heat and light. dows energy-eff- icient . THE IMY HERALD 1555 North Freedom Boulevard P.O. Box 717, Provo, Utah 84603-071- 7 The Home Magazine is d published every Friday by The Daily Herald Energy tips Though solar water heaters have a higher purchase pgf e than do conventional electric water heaters, it has been estimated that the total cost of heating water over the solar system's lifetime is at least 20 percent less than the costs of the conventional To place a classified display ad contact: Clay Greenwood , JohnSkousen ... ,, .344-252- 5 .344-253- 6 Carolee Stevens,. Louise Killpack 344-252- 2 ...344-252- 9 heater. Look at the way your kitchen is laid out. If you can Check out some drawings , move things around, be sure and photos of the cliff that the refrigerator is in the coolest part of the room. In dwellings of the early Native Americans, the sod homes of many homes, it is placed right our country's pioneers or the next to the range and oven, Eskimo igloos to see how which produce heat from cookhomes can be built to respond ing. This makes the compresto their environment. And for a sor work harder to keep food dramatic example, visit cold. J markgreeraol.com. Jefferson's home in Monticello, which took solar and wind effects into consideration to increase the comfort level. These practices may have inspired today's trend toward the style of homes with big overhangs, ,, wide porches and tin roofs. nonair-conditione- at Write to him via . 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