Ideas for holiday savings

Lighting: Invest a few extra dollars in LED lights. They use 80 to 90 percent less energy. Set up a timer so they go off automatically at 10:30 or 11 p.m.

Wrappings: Special paper and bows are expensive and wasteful. Save a tree and some cash by using gift bags saved from last year. Try creative wrapping with fabrics, posters or magazines.

Trees: Fake trees are expensive, petroleum-based and not biodegradeable. A real tree can be taken to the county recycling facility and turned into mulch.

Holiday cards: They are expensive to buy and mail. Instead, create an email greeting that could include photos. Send individually to each person, not to an entire list at once.

Low interest on 15-year mortgages brings many refinancing deals

Mortgage interest rates are the lowest in half a century, and the 15-year rate is lowest of all.
Some mortgages are being offered at 3.75 percent for the 15-year. A year ago, the average rate was 4.68 percent.
In the past, many people would have opted for a 15-year instrument instead of one for 30 years, but couldn’t afford the higher monthly payments. The gap on monthly payments has now decreased.
Refinancing -Low interest on 15-year mortgages A 30-year mortgage holder on a $200,000 loan at 7 percent would pay about $1,330 in principal and interest for 30 years. If the $200,000 mortgage was taken at 3.75 percent interest, the monthly payment would be just $124 more, or $1,454 for only 15 years.
Twenty-year loans have also become a good choice. At today’s rates, a borrower with a 30-year loan at 6.5 percent, and a $200,000 principal balance, could save some $70,000 in interest over the life of a shorter 20-year mortgage.
According to HSH Associates, a publisher of mortgage and consumer loan information, the shorter terms are especially attractive to people who want to build equity more quickly and those who want to pay off mortgages in a shorter period of time. About one-third of refinancers are moving to 15-year or 20-year loans.
One lender, quoted in USA Today, says more homeowners who are in their middle years are applying for the 15-year mortgages. Their income is higher now than it will be at retirement, and they can afford to pay off the loan before they retire.
About a quarter of residential properties are now worth less than the amount owed on a mortgage. If they can afford it, some people are paying cash up front to move from a more-expensive mortgage to a cheaper, shorter-term loan.

The new gold rush

Is gold the best investment?

Americans are buying so many gold coins the U.S. Mint can hardly keep up with the orders.

From September 2008 through January 2009, the mint sold three times as many American Gold Eagle coins as it did last year in the same months.

Gold has tripled in value since 1999, but its long-term track record as an investment has been inconsistent and at times a money loser, say the editors of Smart Money magazine.

America’s gold dealers report that there was a similar upswing in buying when investors were worried about the effect of the turn of the century, the Y2K scare. The demand and prices soon fell for a time when the world didn’t plunge into chaos.

Some dips in gold prices are difficult to explain, such as the day in October 2008 when the price fell to $682 an ounce. It was $1,003 in March 2008.

Professional money managers are partly responsible for the present gold rush, but individuals buying more coins are causing more of a backlog. The U.S. Mint has sold so many gold coins that it keeps running out of gold blanks, which is the material for striking an eagle, buffalo or other image on the blank to turn it into a coin.

For the first time since the Y2K buying binge, the mint has been forced to ration the sales of certain types of gold coins, including the American Eagle.

As always, companies and individuals feel gold is an investment that may hold value better than others, especially during a period of inflation.

The per-ounce price will always vary either higher or lower.

Here’s how to preserve your keepsakes

keepsake hoarders Attention all keepsake hoarders
Here’s how to preserve your stuff
Nearly everyone has boxes of stuff they save. Inside them are old letters, newspaper clippings, vinyl records, photographs, maybe an old wedding dress, and old kindergarten drawings.
Now, authors Louisa Jaggar and Don Williams tell what to save and how to do it in their book Saving Stuff: How to Care for and Preserve Your Collectibles, Heirlooms, and Prized Possessions.
First, they provide a worksheet to prioritize keepsakes and determine what to keep and what to toss.
One of the keys to saving stuff is knowing what can damage it.
Light will fade everything from photos to textiles and paintings. Both sunlight and fluorescent light can be harmful. To protect valuable wall hangings, switch to lower-wattage lights.
Temperature extremes, too hot or too cold, make many items brittle. Museums keep their thermostats at 70 degrees.
Moisture will dissolve, stain, or mold your treasures. Keep them in a plastic tub with a tight seal. Never wrap anything in plastic cling wrap.
Air pollution, tobacco smoke, and oily polishes are bad for antique furniture. Use furniture wax to protect it.
Bugs and critters are notoriously dangerous to keepsakes. Maintain your home so mice can’t get in and be sure your windows are screened.
Handling with bare hands can damage delicate papers, fabrics, metals, and ceramics. Wear cotton gloves when handling antique books and papers.
Guard against flooding. If you must store important keepsakes in a basement, be sure they are stored in a tightly closed plastic container.

Kitchen renovation vs. home value

kitchenOne of the key factors in deciding to remodel your kitchen should be the percentage of the cost you will recoup when selling your home.
A complete redo could cost up to $50,000. But unless your home would sell for $500,000 or more, you would have little chance of recapturing that investment.
When considering what you might do to make your kitchen more enjoyable and convenient, here are a few less-costly projects.
* New kitchen appliances are a good investment and give a good bang for your buck.
* For new cabinets, don’t order custom-made. Good cabinets are available at home improvement stores.
* Kitchen islands are nice, but not all kitchens are large enough for them. TV advisor Bob Villa recommends adding an interesting or small kitchen table instead. It will provide extra work space or an informal dining area. It’s less expensive and takes less space.
* It doesn’t cost much to tear down a wall if you want a bigger kitchen. Don’t do it by sacrificing storage space.
*  New lighting can be a dramatic improvement. Add energy-efficient recessed task lights above work areas and eating places. Create lighting that can be either bright or atmospheric.
* Buy a new faucet. Consider a high end model and top brand.
* For counter tops, Villa recommends solid granite. It lasts for many years and doesn’t scratch or stain easily.