Southern California Wildfires

What a disaster! In one of the most beautiful areas in the USA, wildfires are destroying parklands, homes, businesses, and lives. For nearly a week, areas stretching from San Diego to Los Angeles have been threatened, and in some cases destroyed.

California residents are familiar with wildfires. They seem to occur regularly during normally dry seasons in portions of the state. Almost every year, thousands of acres are charred by wildfire. This time, it's different. We usually acquaint wildfires with remote areas that mostly impact the wildlands and wildlife. This time, the fires threaten heavily populated residential areas. Who hasn't heard of Malibu, Los Angles, or San Diego? These are locations where many people in the USA dream of living!

I've been to California many times. Each time I go there, I threaten NOT to leave. I still have family and friends who live there. My heart goes out to everyone who is being threatened, or has been impacted by the wildfires. The diversity of the state is beautiful with the mountains, the ocean, the incredibly blue skies, and the beautiful weather.

In financial terms, no one knows what the final cost of this disaster will be. Evacuating nearly 350,000 residents in the San Diego area alone would cost a lot of money, and that doesn't include the cost of the firefighters and equipment that are fighting the fires. Imagine losing your home or business entirely to wildfire. Would your insurance cover the loss? Are natural disasters like this covered?

Whatever the final financial toll is, this disaster seems to represent an epic battle between human and nature. For years, humans have been destroying areas that were built by nature. Often, the justification is commercial success or population growth. Now, wildfires are striking back to destroy what we humans have built.

Lower Interest Rate Benefits

When the Federal Reserve lowers interest rates, you can use it to your advantage!

Adjustable Rate Loans

If you have an Adjustable Rate Mortgage loan, you will probably see a reduction in your mortgage interest during the next interest period. However, there is no need to wait. You can use the interest rate reduction to lock in on a fixed rate mortgage now. Don't wait for your adjustable rate mortgage to climb back up.

Fixed Rate Mortgages

If you already have a fixed rate mortgage, this may provide a window for you to consider refinancing your high interest loan to a lower rate of interest. Check with your mortgage company to see what options are available to you.

Open a Home equity Line-of-Credit

Now may be a good time to open a home equity line of credit. You can use the equity in your home to obtain a lower interest line of credit, which can then be used to pay off high interest credit card and other loans.

Pay Down Credit Card Balances

Even if you can't get a home equity line of credit, consider paying as much as possible on your highest interest rate credit card balances. You should see a slight drop in overall credit card rates, so use this opportunity to pay those credit balances down!

New Car Loans

If you have been looking to purchase a new car, this can be a good time to buy. Some auto dealers are offering zero interest or low interest car loans. In some cases, dealers may be offering dealer incentives and cash back. Check into this possibility to get the new car you have always wanted. Get rid of that clunker!