Should you refinance your mortgage?

Executives are managing less and delegating more. Of 150 executives from the nation's largest companies polled by Office Team, a staffing service specializing in temporary administrative professionals, 93% indicated that they were giving employees more authority to make decisions and take action than they did five years ago.

"This newfound willingness to delegate authority is not so much an altruistic approach as it is a result of today's intensely competitive business environment," maintains Andrew Denka, executive director of Office Team. "Managers everywhere are realizing that, in order to increase productivity, they must give employees the authority to get the job done. Administrative personnel, for example, are taking on more responsibility for managing projects, computer resources, and making decisions about vendors.

"For employees, this new situation is a tremendous opportunity. It gives them room to grow which they might not have had in the past. Those who are up to the challenge will reap benefits, including greater job satisfaction and promotability."

SHOULD YOU REFINANCE

YOUR MORTGAGE?

If you missed out on the wave of refinancing your home mortgage in 1993, when 30-year fixed rates plunged to below seven percent, you have a second chance to join the parade. Thirty-year fixed-rate mortgages have dropped to below eight percent in some areas, and the recent lowering of shortterm rates by the Federal Reserve may drive down mortgage rates even further.

Refinancing a home mortgage can offer several advantages. For instance, the size of your monthly payments will be smaller. If you have a $90,000, 30-year fixed mortgage at nine percent and refinance it at 7.25%, you will save $110 a month in mortgage payments. Refinancing can free up cash that can be invested in other types of assets for diversification, help fund a child's college education, build an emergency fund, or pay off the loan sooner (saving a substantial amount in interest charges).

Refinancing may sound like a great deal, but there is one hitch: it costs money to refinance. Lenders may charge a variety of fees, including points (each point is one percent of the total loan), title search, appraisal, and attorney fees. These costs may run two to five percent of the total mortgage. Or, the lender may cover all these expenses, but charge a higher interest rate than lenders who include closing costs.

If you do choose to refinance, the Institute of Certified Financial Planners considerations in mind:

* The longer you own your home after refinancing, the better the deal. If you plan to sell within the next two or three years, it's probably not worth it. A homeowner would need about 27 months to recoup the refinancing costs.

* The lower your refinancing costs, the more attractive the deal. Shop around.

* The more points you pay up front reduces your interest rate. The longer you will be in your home, the better this strategy generally is.

* The larger the loan, the less time it will take too break even since the savings will be greater in proportion to the fixed closing costs.

* Some states, such as California, allow lenders to use only the home itself as collateral in the event of default on a first mortgage. it the mortgage is refinanced, though, the lender can look to all of your assets.

* If you have an adjustable rate mortgage (ARM) and you're thinking of refinancing with a new ARM with a low first-year "teaser" rate, remember that it will probably make sense only if you save more in the first year than the cost of refinancing.

* If you refinance 100% on an ARM and interest rates later climb enough, you risk actually owing more when you sell than the house is worth.

MOVING OR TRAVELING?

TAKE MEDICAL RECORDS

If you're moving to a new community or taking a long trip, consider bringing along your medical records to safeguard your health, as well as save time and possibly money Andrew Newman, a pulmonary specialist who chairs Stanford University Hospital's Medical Records Committee, suggests that having data on past treatment and current or chronic ailments can help your new physician begin treating you properly without repeating tests or immunizations and asking needless questions. Moreover, in an emergency, the medical records can help health care personnel avoid serious mistakes, such as giving a medication you may be allergic to.

While state law varies, in most states, the medical record is the patient's property, not the physician's, so it's perfectly reasonable to ask for it." Newman points out. For vacations, a summary of allergies and immunizations, important X-rays, and a list of ongoing conditions may be sufficient to carry along in case an emergency arises.

Very often, he says, a primary care physician will have a complete record. If you're seeing more than one doctor, though, it's probably smart to ask each one for your records. As a practical matter, Newman recommends asking your personal physician and specialists for your medical records at least 10 days before you need them. That way, the doctors should have time to organize the documents properly before handing them over. Some physicians may ask for a small fee to cover administrative costs, such as photocopying.

MAKING IT UP

AS YOU GO ALONG

Beware of having a "master plan" for your life, warns business and creativity consultant James Ogilvy. "A life with a single `grand goal' robs you of your freedom because it demands that every action serve that end," he told the World Future Society

Such single-mindedness stifles creative thoughts and actions that could lead to more satisfactory results. Besides, the ability to be creative will become an increasingly important skill in the workplace as more and more jobs succumb to automation. "A capacity for innovation is as important in an information economy as the need for standardization was to the industrial economy," maintains Ogilvy, vice president and co-founder of Global Business Network, a California-based consulting group.

He says that he is not advocating the abolition of goals. Rather, he believes that people periodically should revise them, so that they can stay in touch with the realities of the moment. Artists of all types, he points out, have been using this approach for centuries. Musical improvisation is one such example. "You don't always know exactly where you'll end up when you start."

Ogilvy points to the lack of success by highly organized science and research because too man goals and deadlines are impose "On a dollar-per-patent basis, big science doesn't do as well as the less-bureaucratized passion of garage inventors.

"We shouldn't cease all planning but we should give up drawing up master plans for our lives, for sooner or later it's time to cease preparing for life and begin living it."

RETURN TO NATURE

FOR 1996 COLORS

Softer, warmer shades will surround us in 1996 in the cars we drive, the clothes we wear, and in our homes, according to Color Marketing Group, Alexandria, Va. The nonprofit international association of color designers say trends to look for are yellow's warming influence on greens browns, and reds; an upswing in the influence of metals and minerals, manifested in a resurgence of browns and grays; and a broadening of the focus on environmentalism into all aspects of nature. The following are among the new colors expected to be big:

* Highway - a medium neutral gray with a hint of warmth.

* Treasure - poised between brown and green, this rich, burnished deep gold is a pivotal color.

* Buckskin - a medium brown touched with red. Warm and dry, this desert neutral is a cautious transition into brown.

* Caffe latte - a soft, medium red-gold. Warm and comfortable, this red-influenced neutral is rich, yet harmonizing.

* Victorian secret - innocent yet romantic, a soft yellow-touched pink hinting at a new direction for rose.

* 'Round midnight - a no-risk alternative to traditional black with a blue undertone.

* Lucia blue - a soft medium blue touched with green, this color is a natural evolution of teal toward classic turquoise.

* Plantain - a fresh, light yellowgreen, from nature with a touch of the tropics.

* Wintermoss - a complex, grayed yellow-green that borrows from natural architectural elements such as rocks and minerals.

DIFFERENCES BETWEEN

SEXES ARE SHRINKING

The differences between men and women are vanishing in the workplace, but still are prevalent in norms outside of business, according to a survey sponsored by the Society for Human Resource Management and conducted by the Centre for International Business Studies in Amsterdam, the Netherlands, and the Ruth Institute in Philadelphia. Among the major findings were the following:

* Compared to an international database of more than 23,000 responses, the differences between males and females is much smaller in the U.S. sample, leading researchers to hypothesize that some American women have taken on "male" types of roles to be successful in business. They respond very differently from men, though, on questions related to their private lives.

* Contrary to stereotypical beliefs, women studied in the U.S. business community were less likely to display emotions than men. This is in sharp contrast with the sexual distinction in other parts of the world, such as Asia and Europe, where females are more likely to show emotions overtly.

* Among human resource respondents, 72% support the premise that women should be encouraged to act more on the "collaborative style of leadership," rather than try to imitate the more traditional "command and control" technique.

* The view of America as a "cultural melting pot" is changing. That model assumes that cultures will assimilate, rather than maintain differences. However, the responses from most ethnic groups in the survey sample reflect the cultures from which they have come.

IS SPELLING BECOMING

A LOST ART?

Americans' spelling skills are declining. Computer users are relying on spell-check functions to verify their work. Many people spend less time reading and writing and can't recognize mistakes when they encounter them. The nation's education system often emphasizes clear communication of ideas over perfect spelling and grammar.

Anca Nemoianu, a linguistics expert at The Catholic University America who helps train language arts teachers, finds that writer who count on computers to flag errors frequently miss words that sound alike, but have different spellings or meanings. In a letter, for example, "Deer John" wouldn't be caught by spell-check because there is no misspelling.

Many teachers and student don't regard spelling mistakes a reasons to lower grades on papers and tests as long as the writing conveys its intended message to its audience. Nemoianu agrees maintaining that, although the should encourage students to look up words and use standard spelling, instructors shouldn't value it over clarity of thought.

She explains that spelling mistakes which become part of written English are examples of the language's capacity for change. She cites the confusion between the plural and the genitive, as in "boys" versus "boy's," that will probably lead to one form-"boys"-acceptance of "nite" for "night" and "thru" for "through."

Nemoianu suggests that "Spelling reformers should be patient and realize that such changes are gradual. After all, the United States hasn't fully adopted the metric system yet even though adherents have been campaigning for its use for years."

IS IT TIME TO

SWITCH CAREERS?

Employees dissatisfied with their jobs may wonder whether to switch their place of employment or investigate a new field. Department of Labor studies estimate that many Americans change careers up to four times during their working years.

Before workers make such important and often expensive decisions, Alan Goodman, a career-development expert at The Catholic University of America, recommends they ask themselves the following questions:

* Are you unhappy just with this job, organization, boss, or co-workers, or do you think there's no future in the field you're in?

* What are your reasons for working, other than economic?

* Do you want your work to fulfill your inner values of what's important? Have those values changed since you joined the labor force?

Some people achieve balance in their lives by supplementing a less-than-ideal profession with hobbies or volunteer activities. Others feel their jobs should meet their inner needs for creativity, altruism, or fellowship.

Many potential career-switchers never thought about why they selected their first field, Goodman maintains. "Young people in high school or college may be steered by family members or teachers to pursue paths that turn out to be unfulfilling in the long run." Careers and work mean different things to different people at various life stages, he says. "A 21 year-old on the brink of a marketing career might view work as an upwardly spiraling progression from junior executive to vice president."

A younger person joining the full-time workforce may value perks like travel and company cars. A decade later, the same employee with a family and mortgage may seek interesting, dependable work with flexible hours and benefit plans. Middle-aged employees may opt for positions that let them work from home or create a virtual workplace" from distant locations while enjoying life in a year-round resort setting.

LAUGH YOUR WAY TO

BUSINESS SUCCESS

Apparently, climbing the corporate ladder is a laughing matter, according to top executives. More than 90% of respondents to a survey developed by Accountemps, a national temporary staffing service for accounting, finance, and bookkeeping, said they believe a good sense of humor is key for advancement.

"A good sense of humor helps build personal rapport and a greater spirit of cooperation," points out Max Messmer, Accountemps' chairman. "When the pressure mounts and deadlines loom, humor helps diffuse tension. Individuals with a healthy sense of humor tend to work well with others - a critical management skill."

He does not advise taking notes during slapstick comedies, though. "A sense of humor must be appropriate for the professional setting of an office. Low-key and understated humor works best. Practical jokes and wisecracks won't take you very far, and will only harm your chances for career advancement."

COPYRIGHT 1996 Society for the Advancement of Education
COPYRIGHT 2008 Gale, Cengage Learning