It's that time again for a little spring-cleaning of my inbox. Below are a few of the pertinent questions that have landed in there lately:
Samantha from Portland, Ore., asks: I was laid off from my job in December. I have been looking for a job, I'm on unemployment and I have a son in his second year of college on student loans. Our income has been cut almost in half, and I've been researching work-at-home businesses. Are any of these businesses legitimate and logical ways to earn extra income?
Samantha, there are legitimate ways to work at home, but you need to search for them carefully. The Internet is rife with scams that require you to pay for work-from-home jobs or job listings, and these should be avoided. I'd take a look at your skills -- make a list if it helps -- and see how you can parlay those into a career. Can you do consulting work? Do you have any expertise that would allow you to give out advice on a site like www.liveperson.com or http://guru.com? Can you freelance write or copy edit? Or maybe you can be a virtual assistant?
If you can't think of anything that fits the bill, you may want to look into direct sales opportunities. These are the companies that allow you to work independently to sell their products -- think Avon, but the entire direct sales field has really expanded in the past few years. To find a company that works for you, check out the Direct Selling Association's website at www.directselling411.com.
Jeanine in Tucson, Ariz., writes: My sister and I purchased a home together in 2005. Now the rates are much lower and we're looking to refinance. We're trying to decide between a 15-year loan and a 30-year loan. Our concern is that although the 15-year loan would save us a lot of money, if the economy worsens and we are unable to make the payments, we could lose our home. Any suggestions?
Think about it this way: If you elect the 15-year mortgage, you'll get a lower interest rate, but you'll also be locking yourself in to that time frame and that increased monthly payment, says Keith Gumbinger, vice president at HSH Associates, a publisher of consumer-loan information. It doesn't sound like you're comfortable with that, and this isn't something I'd risk. Instead, I'd go with the 30-year loan, and then when you have some extra cash, you can always elect to prepay on your mortgage, wipe it out faster that way and save on interest. That way, you're not locked into that increased payment, but you still have the flexibility to prepay when your finances allow.