G-P577JF92D8 google0fb669c3d7480de3.html

Month: December 2020

The Number of Ways to Make Money Online Has Increased – What is an Affiliate?

The Number of Ways to Make Money Online Has Increased – What is an Affiliate?

Technology today allows people to easily access everything they need by a clicking away. Online marketing, online shopping, online gambling, online jobs the online world is definitely becoming more popular. The addition of portable online devices such as the iPad and more capable mobile phones has helped this trend. Existing businesses are trying to keep their profit and increase their market share by making money and doing business online.

Since experiencing global economic crisis the number of jobless people have increased and they are now more people dedicating time on searching ways on how to make income online. Online jobs such as home based freelance essay writing and home based data entry are among the popular search on how to make income online. People must be very careful in choosing the legitimate websites that offers ideas on how to make income online. However there are a lot of legitimate websites offering ways to earn.

One way of earning online is by advertising your product or services or other people product or services as a affiliate. When we speak of affiliate marketing, this means transactions between online businesses and website owners. Website owners make and post advertisements on their sites that support services and products of their business partner. Both parties involved in affiliate marketing achieve shares of profit. You can easily earn profits with affiliate marketing through these three ways:

PPC (Pay per Click). This is one of the most famous ways to earn profits in affiliate marketing. This generates money during every customer visit in one of the products websites. Website owners usually provide a link to the products official website Website owners earn profits with each click of the visitor. Click amounts can be dollars or cents, which relies on the commissions amount and product.

PPS (Pay per Sale). Similar to Pay-Per-Clicks, Pay per Sale is another affiliate marketing tactic. Website owners also advertise the products of their business partners on their site and gains percentage or profits through every sale made because of website advertising.

PPL (Pay per Lead). This becomes effective when consumers register at the products official website because of website owners advertisements. Commissions or percentage are already determined by each party and deposited each time consumers register. As you can observe, affiliate marketing is the best way of earning extra income without hard time pressures, and difficult tasks. Affiliate marketing only needs your website for advertisements and you’re ready to online riches. Website owners only sit back and wait for incomes to increase without doing any promotions. Business partners of website owners also gain advantage through affiliate marketing. Business owners only need to find credible website owners for effective advertising.

Source by Glenn Kutzer

The Master Oil List – Ajo-Macho-Amber

The Master Oil List – Ajo-Macho-Amber

Ajo Macho: Used to protect ones self from the envy of others, from witchcraft and to attract luck. Anoint the self or use a personal candle that has been anointed with the oil.

Anima sola: This oil is used to help the spirits of the dead cross over to the other side with more ease. When somebody dies, sprinkle around the afflicted room then touch them in the shape of the cross on the forehead. This will aid their passage to the other world smoother.

This oil can also be used to recover items that have been lost.

Albion: This oil is dedicated to this god, son of Poseidon and patron Greek god of Briton.

God to all seafarers and boatwrights. Pray to him and use this oil if needing help when travelling over water and for power if you yourself are British or, of British decent.

Algiers: This is to create ambiance and mood wherever it is used. Anoint a light bulb with this to create an alluring sense to any situation. Warning, take care when anointing the bulb as not to cause overheating.

Algiers fast luck: Use this in any luck or fortune rituals, charms etc. Anoint a green candle and burn to attract luck and good fortune.

Alien: For the use of the contact of extraterrestrial beings or other dimensional entities, or simply other worldly forces. Use on white candles.

All Healing: Use this oil when attempting spiritual healing of any type. To apply healing to others, use a few drops on hands to aid the transference of energies from one to another, or alternatively use upon image dolls or candles, or a personal candle can be employed all for spiritual help at healing yourself or others. This is also said to work well by adding a few drops to the bath water to ease pain.

All-Purpose: This oil goes right across the board for the myriad of its uses. You should ideally employ this when wanting to add extra power to your consecrations or are simply confused about which oil to make use of.

All Saints: A good success oil. For successful business deals, mix this with better business oil and anoint a blue candle. Also add to business incenses, candles etc., just to aid your ventures.

All Spice: To help students study, anoint their shoes and also a purple candle.

To add more willpower to achieve success, rub on feet and navel. Apply to neckline for more energy and incentive for the idle, gives ambition in all fields of achievement.

Can be utilised as per all saints oil for success in rituals by adding to other rites.

Almond: To calm foes down, anoint a white figure candle. To attract money and also save it, anoint wallet or purse daily. To attract much money add to fast luck or wealthy way incense (usually one drop per spoonful.) This can also be an aid for wakefulness, dab over eyebrows every morning when getting out of bed to make oneself more alert.

Altar: A sanctifying oil. Should be used on altar at least once a week (particularly on a Sunday.)

Use this to consecrate altar and all manner of ritual tools. Leave a dish containing this oil on the altar as an offering for appeasement.

Altaric: See Earth oil.

Amarra Hombre: This is used by women and homosexuals to trap and bind their man/men.

Mix with controlling oil and anoint a controlling candle.

Amber: A protection oil. For protection against a person trying to break up your relationship, Anoint a white figure candle and write your partners name on it. Then anoint a black figure candle; burn them both for 10 minutes daily until the problem dissipates.

For protection from harm, anoint a Breastplate of Moses seal (from the 6th and 7th books of Moses.)

And continue to anoint it every 7 days to keep it charged. This oil can be used in conjunction with all manner of protection oils and agents etc.

Source by Will Grundy

Discover the Top 7 Lead Generation Methods for Your Business (And Understand Them)

Discover the Top 7 Lead Generation Methods for Your Business (And Understand Them)

Just like the classic real estate industry question: “What are the TOP 3 most important features of any property?” (location, location, location) – the single most important fuel you’ll ever create, buy or wish you had for your business is leads, leads, leads! Doesn’t it make sense to know and understand the top 7 ways to generate leads?

Production Method # 1:

Direct Visual Impact. Impact? Really? Really! Unfortunately, when it comes to direct lead generation like it has been done for decades, most people get it wrong. It doesn’t matter if it is a sign on the side of your vehicle, building or bandit signs, you must be direct, powerful and short with your message. Your colors must be bright and high contrast. Yellow and black signs work best, period. The sign area must be maximized so that letters are as big as possible. Become a sign sage – evaluate readability, placement and “attention factor” of every sign you see. Emulate the best of what you see.

Production Method # 2:

It is very important that you become hyper-aware of the power of coupons. You can easily make a business card that is also a coupon. When you do this, you are adding huge power to every card you give out. Can you put flyers on car windows? If you put a flyer on my windshield, it makes me want to meet you to give you a piece of my mind. When you put a valuable coupon the size of a business card just above my door handle in the window rubber, I will put it in my wallet – BIG difference!

Production Method # 3:

The U.S. Post Office (USPS) is now offering delivery of an 8″ x 11″ flyer for 16 cents per mail box. This is an amazing deal. It gets better. You can sell advertising on a flyer to other businesses that do not compete with you and cover your cost. Please understand, you can get 5,000 double sided color flyers that are plastic coated for about $400. You can see, with both sides available for ads (coupons) you’ll have plenty of space to sell and at the same time, your ad (coupon) appears on a portion of the same flyer. This is endless free advertising in exchange for a little work. You could even make money while getting your ad for free!

Production Method # 4:

We all hate email SPAM, don’t we? However, you may not realize that you have probably responded to a SPAM email at some time. From that email, you may have built trust in the person who sent you the original SPAM. SPAM is legal if you follow some simple rules – Google it. Major corporations use legal email SPAM. Most people don’t realize that the SPAM law is actually the CAN-SPAM law (meaning you can spam as long as you follow a half dozen simple rules).

How can you do it so no one gets upset? Offer free help or valuable information. I did this with real estate agents (for example). I sent them valuable tips they had never been sent before. I told them in the original email that I would continue to send tips unless they unsubscribed. I made it extremely easy for them to unsubscribe. I quickly built a big list which accepted my emails. I eventually made an offer of my product to them in the same email with a tip. My product was real estate buyer leads which we (my son and I) produced on the internet. We offered a great bargain. It is because we continued offer free great information along with the product offer that very few unsubscribed.

Production Method # 5:

Run a simple drawing for something. We have all put our business card in a box for a free lunch. If you have a brick and mortar business, you can do this to get attention for a new product in your inventory. Make the drawing for that product. Put the drawing date out about 60 days. People will give you their name, email and cell phone number. Follow up and offer them a “special phone offer” discount for the product.

Production Method # 5:

Create a business card rack in your shop. You can buy these racks as well. They are designed to hold about 20 business cards in up to 60 slots. Next, buy some $1 or $2 desktop plastic business card holders. Make a business card coupon. Visit local businesses around your business. Introduce yourself and say, “I would like to ask a favor – would you put my cards on your counter?” Show them your 40 cards in the little individual rack. Ask for their cards – “I’ll display your cards in my shop.” This works like a charm!

Production Method # 6:

The famous review service (YELP) is a powerful lead generator. Most people do not realize that they must register their business with YELP. Google+ is powerful as well. Get registered at both, now! Start writing YELP reviews on every business service you use. Write honest reviews. Your reviews will be posted by YELP only after you have written multiple reviews.

Production Method # 7:

Online lead production. How do you get leads online? There are several ways – it is a big subject. Google has (recently and once again) made changes… and now, You Tube clips seem to have more power than ever. If you don’t know how to make and upload You Tube clips, consider investing the time. Another time tested method is to create simple but powerful capture website pages. These pages typically make a true and powerful offer of something of real value, for free.

What ever you do, never stop generating leads. Build sustainable systems that are easy to maintain. You will be a big success.

What should you do next?

Source by Scott R. Linden

10 Easy Ways to Promote CBTopSites – Clickbank Mall

10 Easy Ways to Promote CBTopSites – Clickbank Mall

Of all the Home Based Business Opportunities, Affiliate Marketing is the easiest work at home job. Just simply send the visitors to your affiliate site and after every purchase, you will be rewarded with affiliate commission. If it is a Clickbank product, you can make money up to 75% of the product price.

The beauty of the Clickbank mall is that you can promote all the products with a single link. So you have a greater chance to get maximum affiliate commission through Clickbank mall. But the question that ponders every internet marketing guy is how to promote it. To make it simplified, I’ve compiled the top 10 ways to promote your Free Clickbank Mall to get maximum benefit in the form of affiliate commissions.

1. Place the CB mall code on your website/blogs in any form (CB Search Box, CB Ads, CB Banners). Paste it in a prominent place so that it could attract visitors. The higher the number of visitors, the higher chance of making money online.

2. Submit your CB Mall links in social bookmarking sites such as Digg, StumbleUpon, Del.icio.us, Technorati, Reddit, Propeller, MyBlogLog, Slashdot, Furl, Spurl, BlinkList etc. As these sites have high visitor strength, your site too will have greater exposure.

3. You can even promote your CB mall link through forum signatures. As and when you make a meaningful post in the forum, you will get esteemed status and thus forum members click on your signature links.

4. Many of us simply send e-mails, but forget to use it at full length. You can place the CB mall link at the bottom of your mail and convey the message to all your near and dear ones. This is one of the free methods to promote the Clickbank mall.

5. Start a blog and write review on products of CB mall Affiliate Marketing. Insert the affiliate link in that review. Ping the blog post using ping-o-matic.

6. Write articles on the CB products and submit it to the authentic article directories such as EzineArticles, GoArticles, etc.

7. Write a lens through Squidoo and HubPages. As search engines like it, you will get a good number of visitors for your Clickbank mall.

8. Make a classified Ad through UsFreeAds and other ezine classifieds.

9. The most novel method used for promotion is through YouTube. Make an interesting video and upload it on YouTube.

10. Last but not least, do promote your Clickbank Mall through offline also using printed material, business cards, etc.

Note that all the above mentioned ways to promote the CB mall are free. You do not need to spend a penny. Just promote the CB mall and earn easy money online.

Source by Cher K Markov

Make Money Online Sharing Tips

Make Money Online Sharing Tips

Have you ever imagined a situation in which to make extra money, you do not need to wake up, start thinking of how to get to work each day? Rather than working when you need to work, you only work when you want to. Through the internet, you can make a lot of money and live the kind of life you always dreams of. In this article, we will be discussing some of the ways you can make money online.

Here are 5 tips which I would like to share and help you to explore making money online. Go through each tip and choose the best one which will work for you. I believe with your perseverance, results will show gradually and turn into a long term passive income source for you.

CB Passive Income

The idea of CB Passive Income is teaching individual various methods of generating quick traffic which is then sent to a squeeze page. With this, you can build a money-making email list. After then, various Click Bank products are then sent to every email on the list. Once a sale is made through a link, a certain commission will be received by the owner of the list.


Freelancing is another simple approach in which you can make money on the internet. As a freelancer, you work online by offering little services. You can offer totally anything varying from writing, playing tricks, interpreting, making music, short video clips, voice overs, and lots more. Freelancing gives you the opportunity to make money online while doing what you love most.

Email Marketing

Email marketing stands at the heart of each effective activity on the internet. If you are really serious about making money on the internet, email marketing is unquestionably a great avenue in doing this. If those email subscribers are effectively and acutely inspired by what you need to say, and they joined directly through your web page or blog, your rate of success will be much higher.

Websites that pay

Another way to make extra money while you work from home is by performing various tasks on some website. The task may range from shopping to taking surveys to testing products. Some of the websites include Swagbucks, InboxDollars, Project Payday, User testing, and so forth. However, do not dream of earning millions. Just an opportunity to save extra money.

Work-at-Home Companies

Furthermore, certain companies are ready to hire your expertise, even if it requires that you work from home. You will be assigned specific tasks to handle. Once you complete the task, you will be get paid. Some of these work-at-home companies include CrowdSource, Liveops, Leap Force, and Demand Studios.

Source by Elizabeth Lim

8 Affiliate Marketing Mistakes You’ll Want To Avoid

8 Affiliate Marketing Mistakes You’ll Want To Avoid

Affiliate marketing is a good way to produce an extra income but only if you are prepared and go about it the right way. Here are some mistakes you’ll definitely want to avoid.

1. Choosing the Wrong Products

Any product you choose should offer a solution to a problem that your audience has. First choose who your audience is, then find solutions for them. Doing it the other way around can include the risk that there is not an audience for that product in the first place.

2. Joining Too Many Networks

You can’t make good income from affiliate products if you spread yourself too thin. Choose just a couple networks and work directly with some good products and their managers to ensure the best mix of products for your audience’s needs.

3. Not Investing in Helpful Resources

There are a lot of very helpful products, services and solutions today that can help make your life easier as an affiliate marketer. Set a budget and invest in your business. You can’t make money without spending, but you want to spend it wisely.

4. Not Using Technology to Its Fullest

Email lists, autoresponders, social media, blogs etc… all involve using technology. Seek to learn fully each new piece of tech that you add to your business before adding the next one.

5. Not Looking at Your Competitors

Many times your competitors are doing a lot of things right that you can learn from. If they are successful, you want to look at them. Buy some of their products and sign up for the lists. Make a note of what they’re doing right and wrong and make a plan to do even better.

6. Thinking You Don’t Need SEO

Search engine optimization is important, no matter what you’re doing. You can use it when you are completing a social media profile, a guest blogging bio, and more. It just means that you are considering the search engines (and your audience) in whatever you do, both on and off your website.

7. Not Finding Multiple Streams of Income

You don’t want too many products, but on the other hand you don’t want to deal with only one. You need to diversify your income stream by adding more than one product. The trick is ensuring that all products fit with your ideal audience.

8. Spending Too Much Time Creating Marketing Collateral

With most products, choose programs that create all the marketing material for you. The reason is that you should not be driving marketing strategy, the company should. If they can’t take the time to create marketing materials for you, it’s probably not the product you want to promote.

Source by Jon Allo

7 Reasons You Have Nothing in the Bank

7 Reasons You Have Nothing in the Bank

You have a job, perhaps even a good one, but you’re living paycheck to paycheck and you have nothing saved up. How did that happen?

You don’t set goals

You won’t get anywhere unless you set goals. This goes for your career, your life and, for sure, your money.

Set a goal to have x saved up in 12 months, y saved up in 5 years, and z in 10 years. Sure, life throws a curve ball at us from time to time, but you need to know what you should have saved up at each stage of your life, even if you have to play catch-up from time to time.

If you’re 25, you should aim to be worth $1 million by 50 including your house. If you’re 40 and still have nothing, aim to start by saving $500 a month (increasing by $100 a month every year) to be worth $1 million by 65.

You don’t have a budget, or you have a budget but don’t stick to it

Budgets might sound boring, but believe me it’s much more boring not to have any money. Set a budget and stick to it. Your savings come first, then manage on the rest, whatever it takes.

You waste money

Any money you waste is gone forever. Cut out the cigarettes, the dinners out, the drinks at the bar, the brand names… It’s much more important to be on track financially. Ask friends over for dinner instead of going out to the latest over-priced restaurant, open a cheap bottle of wine at home instead of drinking at wine bars, learn to cook instead of ordering take-out, buy cheaper things, have a 6 month spending freeze, re-negotiate your mortgage, talk to your bank to eliminate or reduce fees, find free things to do on the weekends instead of spending hundreds of dollars.

You don’t earn enough or you don’t work hard enough

Even if you’ve cut your spending to the bare minimum, maybe you simply don’t earn enough. Double-down on your job and try to get a promotion or two. Look around for something that pays better instead. Sometimes you have to move around to get ahead. Get that CV looking professional. Start a side gig to make some extra cash. If you’re just working the minimum at your day job and then partying from 5 pm, you’re never going to be financially secure.

You’re in debt

If you’re in debt at the bank or just paying the minimum on your credit cards, you’re working for them, not yourself. The only debt you should have is your mortgage. Make a plan to pay everything else off, starting with the most expensive debt in terms of the interest rate and set some target dates. Try adding all your short-term debt to your mortgage and vow to yourself it will never happen again.

You’re in the wrong group

Your friends spend money like there’s no tomorrow and you try to keep up. Maybe they’re making more than you are, or perhaps they also have debts that are dragging them down just like you. Don’t be afraid to say no to the latest idea about how to waste money. Look for new friends by joining cheaper activities such as reading clubs, hiking groups, cooking classes, etc etc. You’ll soon get in with a better crowd.

You live with the wrong person

Your partner is a spender and you’re too afraid to put your foot down after so many years. But why let a spender take the money decisions? It makes no sense! Take control. Close the joint account and cancel those joint credit cards. OK, you didn’t fall in love with someone because of their spending habits, but come on! Are you going to work like a donkey for the rest of your life for nothing? Divorce is expensive, but many people say it saves them money in the long run so don’t be scared to take some responsible decisions and put down some red lines.

Source by Simon Hill

Top 10 Tips To Start An Internet Cafe

Top 10 Tips To Start An Internet Cafe

An Internet café is a place where people, who do not have proper computer setups, visit to have access to a private computer for an allotted time. Every computer has an Internet connection, and the users have to pay charges to the café manager for the time spent on the computer. The size of an Internet café can vary from a small room having 10 computers to a huge room with a hundred computers.

We are living in a time when the Internet is the most powerful medium. Therefore, starting an Internet café is naturally one of the most lucrative businesses. Here are some basic tips if you are planning to start an Internet café business:

#1. Budget – The first thing to consider while setting up an Internet café is the budget. Even a small café with 10 computers, Internet connection, routers, and other basic accessories is heavy for a single wallet. It is advisable to take a loan from a bank or borrow money from friends.

#2. Location – The location can decide the success rate of your café. Therefore, you need to find an ideal place to set it up. School and college students are most frequent to Internet cafés. So, you should consider building the café near a school or a college. If that is not possible, then make sure the area has high foot traffic and less competitors around you.

#3. Style and Comfort – Buy comfortable chairs for the café room. Get some stylish items and use them to decorate the walls. You also need to make the lounge look attractive and inviting with stylish carpets and couches.

#4. Hardware – You should offer better facilities compared to your competitors. You should focus more on getting the best processors, Hard Disks, RAM cards and graphics cards. Do not waste too much money on headphones and other accessories.

#5. Software – You need to install necessary software in every computer for the customer registration and log-in. Ask the customers to carry their IDs every time they visit your café. Block the pages that have a risk of a virus attack. Buy good and reliable anti-virus software. Make sure to clear cookies and history at least once every day.

#6. Connection – You should always remember that a fast Internet connection is the USP of any Internet café. So, you should spare no expense in getting the fastest connection. Set up a Wi-Fi network, and check whether the router is working properly or not.

#7. Promotion – You need to create accounts for your café on popular social networking sites. Ask your customers to become followers. You can use these accounts to connect with your customers and let them know about upcoming events or offers. You can also organize a “game night” once a week. These activities will boost your popularity very quickly.

#8. Food – You can have a food counter inside your café. Include small and popular finger foods. Do not go for anything heavy. Add favorite items to your menu that are not available in other Internet cafés. You can also offer complementary coffees to regular customers. This will make your café famous and more preferable.

#9. Membership – Your customers must have the choice to become “elite” members. Provide them with membership benefits and discounts. In the long run, these memberships will give you a loyal customer base.

#10. Other services – Provide your customers with faxing, scanning and printing facilities. You can even sell blank CDs, DVDs and USB drives, as Internet users frequently need these accessories.

Source by Agnipravo Sengupta

The Best Part About Affiliate Marketing – Easy Income Guaranteed

The Best Part About Affiliate Marketing – Easy Income Guaranteed

Affiliate marketing program is one of the best online businesses today. It is because of the fact that you’ll earn money easily. Many people see this as a form of “Easy Money” and as a matter of fact, it is. You can just leave your webpage and do something like go out, go to work and many more. You can do that and you will still earn money. The technique is you just have to focus on getting your website to get a lot of traffic or visitors so that they will see your site recommendations and Viola! You have an instant money maker. How does an Affiliate Marketing Business you ask? As you can clearly see, Affiliate marketing is a commission based sales program in which you will recommend a site to your webpage visitors and through any purchase made by them, you will get a certain amount. The amount that you will earn varies from the site that you made a deal with.

The percentage of sales that your visitors generated to the site that you are recommending is called an Affiliate commission. The good thing about this kind of industry is that you will be able to provide the site with income as well as yourself, allowing for a win-win situation. One example is that if you have your own blog, and you have two thousand followers. One of your followers (website visitors) clicked one of the sites recommendations you made, and then made a purchase, you will get from over 5 percent up to 16% of the income that the site received because of your recommendation. This is easy money where all you have to concern yourself about is to bring in traffic or potential customers to your site. Once you have mastered that, you can now earn an income that is easily obtained and very lucrative.

Fundamentally, Affiliate Marketing is a system in which an online site can get a lucrative and easy income from a different website through the process of featuring, linking or putting content of such products on their site. It is just like advertising a company to your circle or community wherein every purchase made from your followers or website visitors will give you a certain amount of income. This is truly a great way to get extra income whether you are employed, unemployed or have your own business.

Furthermore, affiliated marketing will not provide you with good results if you don’t know or don’t do the right ways of doing it, just like every business out there. There are programs that will teach you how to be an affiliated marketer within just a matter of time. A small investment of time and effort will give you great lifelong results.

Source by Adam Chris

5 Ways Refinancing Your Home Loan Can Help You

5 Ways Refinancing Your Home Loan Can Help You

We take a look at 5 ways refinancing your home loan could help you:

1. Your lender’s rate is no longer competitive

We’ll start with the popular one first. One of the main reasons people choose to refinance their loan is to get a lower interest rate, and put more money back into their pockets instead of paying the banks.

When done correctly, refinancing your home loan could save you thousands over the life of your loan, and free up cash now.

2. You could switch between variable & fixed rates

Another popular reason to refinance your home loan is to switch between a variable rate and a fixed rate. With a fixed rate, some want peace of mind. That is, knowing exactly how much their monthly repayments will be without the possibility of it changing for a set period is worth a slight increase in rate.

Conversely, you may decide you’d like to take advantage of a lower variable rate as you can accept the risk that rates may rise in future.

3. You could be eligible for a home loan with better features

There are some great home loan features around at the moment, and refinancing could offer you the opportunity to take advantage or more flexible features. Some money saving features to look for are:

Flexible repayments: You might want to switch to a home loan that allows you to make lump repayments without fees or open up an offset account to reduce your interest.

Redraw: Allows you to withdraw extra payments if you need cash. Look for a loan offering free redraws.

There are also some pretty cool boutique features, like getting a repayment holiday (a break from repayments), or the loan portability which allows you to take your home loan with you when you move without much hassle.

4. You could consolidate your debt

Many of us have multiple debts like car or credit card along with our home loan. Often our car and credit card loans have pretty high interest rates, meaning more out of your pocket.

Refinancing could give you the opportunity to merge your debts and potentially reduce the overall interest you’re paying, streamlining all of higher interest debts into one lower interest debt and reducing your monthly repayments.

The interest rate on a home loan is usually significantly lower than the other types of credit. Helping you to save on interest charges and pay debt off sooner.

5. You could release some equity in your current property

You may be thinking about joining the thousands of Australians that have invested in property, renovating your home or traipsing around Europe on that trip of a lifetime. With your current home usually being your most valuable asset, it only makes sense to release as much of the value in your home as possible.

Home equity is the difference between your home’s current value and the balance of your mortgage. For example, if your home is worth $600,000 and you have a mortgage of $200,000 remaining, your home equity is $400,000. That’s money that can be used to build wealth.

Not so long ago, the only way home owners could access their home equity was to sell up and upgrade to another property. These days, home loans are flexible and it’s possible to get access to the equity in your home without having to sell up. Reviewing your home loan can help you see exactly how much equity is available to you, and refinancing can help you access the equity to use for other things.

What should I consider before refinancing?

Cost of refinancing

While refinancing has some amazing benefits, there are costs associated with refinancing your home loan – costs that may outweigh the potential benefits. Following are two of the main costs associated with refinancing:

Exit Fees

Exit fees may apply when you pay out a loan early, usually in the first three to five years of your term. It could be a percentage of the remaining loan balance or it may be a set charge. Check your loan contract for more details. Although exit fees have been banned on new loans taken out after 1 July 2011, they could still apply to loans taken out before this date.

Borrowing costs

When you refinance, your new lender may charge a range of upfront fees. However not all lenders charge these fees and some may be negotiable.

Case Study

Let’s have a look at a refinancing example using some numbers to better understand the benefits and costs.

The situation:

Sue has a $300,000 loan repayable over 25 years. Her current rate is 6.4% and her monthly repayments are $2,006.

If Sue can refinance to a loan with a rate of 5.9% a rate reduction of 0.50%, she can lower her repayments to $1,914, a saving of $92 each month.

The solution:

Looking at the cost side of things, we’ll assume Sue will pay $1,000 to refinance her loan. In this case it would take about 11 months ($1,000 divided by $92) for Sue to claw back the costs through the savings she makes.

The outcome:

That’s not a bad time frame. If it was to take several years to recover her costs, refinancing may not be worthwhile.

Should you refinance?

We’ve gone through the potential benefits of refinancing, the costs associated and a short example. That’s a lot to take in. When it comes time to make a decision about refinancing your home loan, the best suggestion is to sit down with a mortgage broker you trust to help you go through your options.

Source by Lisa S

How To Make Extra Money During Coronavirus Lockdown 2021