Everyone who owns a home knows firsthand the financial obligations involved. A sizeable portion of your monthly income is delegated to a cover a number of expenses, the largest being the mortgage. Simply put, a mortgage is a long term loan that's repaid over a period of time. Most mortgages are set on a monthly payment basis, while others are "accelerated" to allow the borrower bi-weekly or weekly payment options. A lower interest rate means lower monthly payments, so it makes sense to shop around for the lowest possible rate. Even if you have already agreed to one plan, it may be possible to refinance your mortgage to take advantage of a lower rate. There are two basic types of mortgages: fixed, and floating. A fixed rate mortgage locks the borrower in to pay one rate for the full term, where a floating arrangement means that the rates, and payments, can be higher or lower. Both types of mortgages have benefits and downfalls, and your particular situation will determine which plan is best for you. Homeowners generally use mortgage refinancing as a tool to move from a higher adjustable rate mortgage to a lower fixed rate mortgage. In our prevailing market, mortgage rates will change on a regular basis. If you have already committed to a loan at a higher rate than today's interest rate, you might want to consider mortgage refinancing. When you refinance your mortgage, the full payment of your current agreement will be entered into a new loan at today's interest rate. This can be a wise move when rates drop dramatically, by two points or more. Watch the prevailing interest rates and compare them to what you're currently paying. There are several factors to consider before moving to refinance your mortgage. Your remaining term is one important consideration. If you have just a few years to pay off the loan, then it wouldn't make sense to refinance and commit to another extended payment period. Various costs also come into play. Prepayment fees for your current mortgage, closing costs of the new agreement and other borrowing fees may be payable. Some lenders will charge a fee for closing a mortgage early, so ask questions and read the fine print before you make your decision. Mortgage refinancing can be a good way to access extra cash when you need it. If you have built a significant amount of home equity, this cash may be available in the form of a home equity loan. You can use your home's value to generate cash for debt consolidation, home improvements, college funds or other necessities. Refinancing your mortgage can be a wise decision if you have other outstanding debts. Making one monthly payment is not only easier, but it also enables you to avoid higher interest charges from credit cards and private lenders. Your credit rating and your bottom line will both be healthier. If high interest rates and a stack of bills are straining your budget, consider refinancing your mortgage. You'll save money by paying less interest. Talk to your bank or financial advisor to determine the option that's best for you.
Identifying opportunities for savings in this area of administrative expense can be as simple as running a cursory check on usage versus plan limits and features, although fine-tuning the details may require more expert assistance.
The following are RED FLAGs for savings opportunities:
Overages ? this is clearly the most common source of cellular cost abuse as excess usage (above and beyond plan minutes) can easily turn a $60 monthly charge into $200 or more. If a user regularly exceeds their plan minutes, the plan needs to be revised to accommodate the user's actual activity. If a user exceeds plan minutes only occasionally, or even just once during a calendar year, the excess charges will likely result in costs far greater than the expense incurred by moving up to a higher usage plan. In addition to excess regular minutes, overages can also come in the form of roaming or long-distance activity. Again, plans should reflect realistic user activity.
Unused phones ? an unused phone creates expense, but offers no productivity. Unused phones may be due to inactive or retired employees, users having multiple or substitute devices, or a user's preference for other means of communicating and conducting business. Regardless of the cause, an unused phone means unnecessary expense; furthermore, these expenses can be significant when considering larger corporate environments in which there are greater numbers of employees, increased turnover and more intra-organizational relocations.
Right-sizing ? while an under-used phone will generally not incur the kind of excess expense seen with overages, it still represents unnecessary expense. A 2000-minute plan for a 250-minute user that never approaches or exceeds the plan limits should be appropriately adjusted.
These next two items represent areas for savings opportunities that require a little more attention to logistics, but can result in meaningful expense reductions:
Pooled Plans ? these plans provide for a shared pool of minutes for multiple users. For example, a plan offering coverage for 5 users at 500 minutes each provides for a total of 2500 minutes. Pooling minutes mitigates the risk of overages, as any one user's excess can be offset by all other users' shortages. While pooled plans are offered by all cellular providers, they are not always published, so it is in your organization's best interest to inquire as to each vendor's plan requirements. For instance, each vendor may require a different minimum number of users in the pool, and will offer varying levels of pooled usage.
Special Features ? voicemail, caller ID, rollover minutes and text messaging are some of the more common special features offered by providers. All plans should be carefully reviewed to determine which users require or depend upon which features, and how the costs of these features impact total billing. Rollover minutes are most effective when users have erratic activity, or experience seasonal or isolated variations in usage.
Those responsible for managing an organization's indirect cost structure will find other helpful tips and strategies in the links located in our biography section.
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Trevor Goald has sinced written about articles on various topics from Mortgage, Pets and Mortgage. Author Trevor Goald is a columnist for numerous popular Internet magazines, on and