The period for repayment of the mortgage is very variable, although the average is about 30 years. There are also deals on the market with maturities that extend up to 40 or 50 years, although the latter are rare.

The applicant’s age plays a key role in determining the period for refunding the mortgage, since the limit is tied to your age at the end of the mortgage. In general, banks now determine the maximum age 75 years for repayment of the mortgage. Thus, if a person is 30 years old to apply for a mortgage could get within 40 or even 45, but not an applicant for 45 years, which would be granted a maximum 30-year mortgage.

Better a short or long term mortgage?
There are ideal repayment terms for each profile, but cannot say that there is an ideal time. This largely depends on the applicant’s income, age and conditions of the mortgage. Here are some tips that will be useful to choose the best repayment term of your mortgage: (more…)

The Department of Consumer Law in New York City has this bulletin on different ideas of how to take advantage of the refund you receive to complete your taxes. These tips also apply to any amount of money you receive might not be part of your monthly income: A panel, double salary, an inheritance, a raise, etc… Here goes:

A tax rebate puts money in your pocket that can help you pay your bills. If you are careful in handling the refund, you can also use it to achieve other financial goals.

Reduce your debt
Debt interest cost money, so if you cut it, eventually it will help save more. If you have loans or multiple credit cards, first pay the debt with the highest interest.

Start an emergency fund
Place a portion of their refund into a savings account to hold funds for emergencies or financial need. (more…)

The IRS has a very interesting newsletter frequently asked questions related to job loss and its relation to taxes, here are the most important guidelines:

The following Questions and Answers provided by the Internal Revenue Service (IRS) to clarify the financial implications related to the taxes faced by employees who have lost their jobs, have provided references for additional information.

“Severance pay is taxable?

Yes, severance pay is taxable in the year you receive it. Your employer will include the amount of these payments on Form W-2 and is going to withhold federal and state taxes, for additional information see Publication 525.

How about the hours accrued vacation or illness?

Yes, the annual pay or accrued vacation or sick are calculated by the employer as part of their salary and will be included on Form W-2. (more…)

Part of my job is to provide financial adviser personal finance workshops in different communities in the city of New York. One of my clients who took the workshop in July last year came to a follow up visit to review your credit and tell me about their financial plans. One of the questions I asked is whether there was any part of the class that had affected more than others and she replied: “I loved the phrase that said that no matter how much you save, but do it often.” Behold the Where did this phrase.

Although I take the copyright of them, the book “The Richest Man in Babylon” by George Clason inspires this phrase. A wealth of knowledge that this book explains is that the basis of wealth is to save ten percent of your income. This is something many people can do, but the concept of saving 10% of a salary that is small is something that seems as if half of our check.

It is easier if instead of focusing on the amount we should save the frequency that this should be done. Try to save an amount you feel good about it, it need not be much because the end is not what matters, what matters is that you do each time you receive an income. No matter whether they are $ 1, $ 5 or $ 50. Save what you can but it is constant, and at the end of the day you’ll get used and saving part of your life. Choose the percentage that suits you and everything will be as it should be.

My client has been able to save more than $ 4,000 in just 10 months and thinks plans to continue saving to buy their own home.

Some time ago published an article on the importance of education, not only as intellectual and personal growth, but as a method of investing for your future. The article explains how people who study statistically tend to earn more income during their lifetime, and stresses education one of the best investment you can make.

I grasp at the same time, provide missing short example of how this phenomenon occurs, and I did raise this in this post on Saturdays. I explain that although education is always related to college, title, licensing, and other academic names, the definition used here is any kind of knowledge gained to help you produce more income for the same time working hours. Here is an example:

Let’s say you’re an auto mechanic, and in this profession wanted about $ 500 a week repairing cars and have done this for three years. A mechanics course hybrid costs $ 1000 to be certified to repair and maintenance service to hybrid car. (more…)