Shop around, check online for travel deals

It has been many years since we have vacationed. I know years ago you advocated using a travel agent. – Reader, via e-mail

Dear Reader: Unfortunately, if you want to get the best deal you really have to look around.

One of the places to look is on the Internet. Many travel agents now only deal in cruises and group tours.

Many of the airlines are giving extra discounts to those who make their reservations via computer. In fact, some airlines even charge you a few dollars more if you call the airline directly.

It sometimes pays to give them a call, however, because even with the few dollars extra, they might have a lower price than an online site.

Finding the best deals around is almost an art form. There’s got to be almost as many fares on each airplane as there are passengers, so it does pay to shop. Keep in mind that last-minute reservations customarily are far more expensive.

Dear Bruce: Would you provide descriptions of the different types of trip/flight/ travel insurance? – R.S., Kenhorst, Pa.

Dear R.S.: You ask a lot in one line. Flight insurance is simply life insurance in case the airplane crashes while you are on board and you die. If you feel you need flight insurance, then you are underinsured for life insurance. The odds of dying in an airplane crash are very small. The odds of getting killed coming to and going from the airport are far greater. Still, there are infrequent fliers that feel that tragedy is just around the corner. Flight insurance is available but at a very high cost to value. Trip insurance is another matter. If you are booking a cruise where several thousand dollars are committed and your health is precarious, you might wish to buy trip-cancellation insurance. This provides, under the terms of the policy, that if the trip is cancelled, you get your money back in full or with a slight deductible. There is also travel-health insurance. It may very well be that your current insurance does not cover you abroad. One can purchase health insurance that covers travel while out of the country. It will be necessary to know what countries, how long you will be there, et cetera. Your travel agent can advise you here.

In summary, for the healthy and the short-term commitment, I don’t feel trip insurance is a worthwhile buy. Flight insurance is out of the question. Travel-health insurance is good for most people if you’re going to be out of the country for a long period of time.

Dear Bruce: My husband and I are considering an interest-only refinance loan on our home. We owe $119,000 on our mortgage and another $23,000 on a home equity loan. We are considering combining them since the value of our home has escalated, and the home is now worth about $230,000. I understand we can do this for five or 10 years and lower our payments quite a bit.

We are 58 and 53 years old, respectively. We will never pay off our home. We don’t have the income to make extra payments, either. We don’t think we should get out of the real estate market and rent. We are living in southern Oregon where real estate prices have increased a lot.

We would like to free up some money each month so we can do some other things like take a vacation. Is this a smart thing to do? – C.W., in Oregon

Dear C.W.: You guys have not included your other assets and liabilities, but you are very surely dissipating what equity you have in your home, and all of this equity seems to be based upon appreciation rather than paying down the principal. While I appreciate the need for vacations, I don’t believe that mortgaging your home and betting on appreciation is the way to go.

Without a hard look at all of your assets, income and liabilities, it’s very difficult to advise you in this matter.

The troubling thing here is that you are using up your equity and will need a place to live upon retirement, which will be upon you more quickly than you realize. If you’re going to vacation it would seem to me that you will have to get a handle on other expenses and reduce those proportionately.

Bruce Williams is a national radio talk show host and syndicated columnist. He can be reached at bruce@brucewilliams.com.