Nov 18, 2015 | Home Buyer Tips
When it comes to home ownership, the biggest buzzword of them all is mortgage and it’s often all people think about when it comes to price. While the ‘m’ word will be a large part of the expense that goes into owning a house, it’s important to be aware of all of the other costs that are aligned with having a home. From taxes to utilities, here are some of the other items that you won’t be able to do without once you’ve made the big purchase.
The Perils of Property Tax
Outside of the mortgage, one of the other more marked expenses you’ll be paying when you delve into home ownership is property tax, which will be determined by the place you live in. While this amount can be quite pricy or more modest, you’ll be able to determine how it will impact your bottom line by dividing it into twelve monthly costs per year.
All the Utilities that Matter
In a small apartment where many utilities are often included, power and heat might seem like a minor cost, but a bigger space means a bigger cost when it comes to the basic necessities of home life. From heating your home during a cold winter to using the stove, this can be a significant cost if you have a sizeable living space.
The Necessity of Insurance
Insurance may seem like something you can forgo if you’re in an apartment building, but when you’ve already invested considerably in the purchase of a house, it’s very important to protect your assets. With insurance, you can often customize a package that will best serve the interests of your home in case something goes wrong.
Don’t Forget About Maintenance!
One of the great things about having a landlord is that you don’t have to worry about small fix-ups like your cabinet falling off or your kitchen sink springing a leak. Unfortunately, when purchasing a home you become your own landlord and this means that the responsibility for all the issues that arise is in your hands, so you‘ll have to pay out of your own pocket.
There are a lot of costs that go along with purchasing a home, but by being prepared and knowing what they are you can make a more informed decision. If you’d like to know more about other costs associated with home ownership, you should consider contacting your local real estate expert for more information.
Nov 18, 2015 | Home Mortgage Tips
If you’re looking into fixed term mortgages, you might be wondering whether there’s any reason why you should take the full term to pay off the loan. In a lot of cases, paying off a mortgage before it comes due is a great decision. If you’re considering paying off your mortgage early, you’ll experience a variety of benefits – here are just a few of them.
You’ll Save Thousands In Interest Payments
By and large, the single biggest advantage of paying off a mortgage early is the money you’ll save in interest. The longer you take to pay off your mortgage, the more you’ll pay in interest overall. In fact, on a 30-year fixed-rate mortgage, you’ll pay as much in interest as you do in principal over the course of the loan – but if you pay off a $300,000 mortgage five years early, you’ll save $60,000 in interest charges, assuming an interest rate of 5.5 percent.
You’ll Greatly Improve Your Credit Score
A mortgage is quite a sizeable debt, and the longer it takes you to pay off your mortgage, the longer it’ll weigh down your credit score. Paying off your mortgage early will boost your credit score quite substantially, which means you’ll be able to take out loans to buy an investment property and start earning income on a second home. And with your first mortgage paid off, you’ll have a significant amount of new money coming in.
You’ll Free Up Your Cash Flow
Once you’ve paid off your mortgage, you’ll free up a great deal of monthly income – which you can invest into mutual funds, a savings account, trips around the world, or a college fund for your children. With so much extra cash available every month, you’ll be able to save, invest, and spend more freely – and that means you’ll meet your financial objectives sooner.
Paying off a mortgage earlier than expected may seem like a daunting challenge, but with discipline and a solid plan in place, it’s very possible. And best of all, paying your mortgage off early offers a number of great advantages that extend beyond just the financial. It’ll offer a variety of lifestyle advantages and give you a great deal of financial freedom.
Want to learn more about how the mortgage process works, or discover great new strategies for paying off your mortgage sooner? Contact your local mortgage professional today to schedule a consultation.
Nov 17, 2015 | Home Seller Tips
When the market is hot some sellers are lucky enough to be in a situation where they see multiple offers come through on their property. Now the only decision left is which one to choose.
It may be easy to look at the amounts offered and go with the highest one, but that is not always the wisest choice. There are several smaller factors that could mean the difference between a winning and losing bid.
Have Any Of The Buyers Been Pre-Approved For A Mortgage?
While an offer that comes in above the asking price can be very tempting, there is a risk that the entire sale can fall through if the buyer is not approved for a mortgage that large.
An easy way for a buyer to set themselves apart from the rest is to make sure they are pre-approved for a mortgage large enough to cover their asking price. This not only decreases the chances of the sale falling through at the last minute, but also shows which buyer is truly serious about purchasing the house.
Take A Close Look At The Terms
The amount being offered on a home should not be the deciding factor in a bidding war, especially if the offers are all so close. Taking a hard look at the terms in the contract will provide a better idea of which buyer should be taken seriously.
Which buyer has put up the most earnest money? A buyer who has deposited a low amount of earnest money may be more willing to walk away from the sale at the last minute, causing a severe headache. Are any of the buyers asking for appliances or fixtures to be included in the sale? These are the small things that can make the choice between offers that much easier.
Negotiate To Have Contingencies Waived
Many buyers will put a list of contingencies into the contract to give themselves an out on buying the home. These include waiting until their own home is sold, having the place inspected by a contractor or attorney reviews of the paperwork.
If only one buyer is willing to waive these contingencies that could be the person whose offer should be taken seriously. Other small factors to look at include closing dates that match up or offers that are made in cash.
A real estate professional in your area can help get multiple buyers interested in your home and assist with going through the offers to find the right one. Don’t try to do this alone, find a professional today.
Nov 16, 2015 | Market Outlook
Last week’s scheduled economic news was sparse due to no scheduled releases on Monday and the Veterans Day Holiday on Wednesday. A report on job openings was released on Thursday along with regularly scheduled weekly reports on jobless claims and Freddie Mac’s report on mortgage rates.
Mortgage Rates, Weekly Jobless Claims Rise
Mortgage rates rose last week according to Freddie Mac. The average rate for a 30-year fixed rate mortgage rose to 3.98 percent from last week’s reading of 3.87 percent. The average rate for a 15-year fixed rate mortgage rose to 3.20 percent from the prior week’s reading of 3.09 percent; the average rate for a 5/1 adjustable rate mortgage was also higher at an average of 3.03 percent as compared to the prior week’s average rate of 2.96 percent. Discount points were unchanged for all three types of mortgages at 0.60 percent for fixed rate mortgages and 0.40 for 5/1 adjustable rate mortgages.
New jobless claims rose last week to 276,000 claims filed against the expected reading of 268,000 new claims and the prior week’s reading of 276,000 new jobless claims filed. The Labor department reported 5.53 million job openings on September, which was the second highest reading since the inception of the job openings report in 2000.
The Labor Department also reported that the quits rate held steady at 1.90 percent for the sixth consecutive month. Fed Chair Janet Yellen has said that the Fed considers the quits rate an indicator of economic strength; if workers have enough confidence to quit their jobs for new jobs, this a strong economy. The quits rate has held steady for six months, which could signal to the Fed that the economy is not yet ready for a rise in interest rates that analysts expect to occur in December.
U.S. News recently cautioned that a combination of rising home prices and interest rates could quickly cool housing markets as first-time and moderate income buyers are priced out of the market and other would-be buyers find it difficult to qualify for the mortgages they need to finance home purchases. Recent hikes in mortgage rates are a likely response to the anticipated Fed rate hike in December.
What’s Ahead
Next week’s scheduled economic reports include the National Association of Home Builders Housing Market Index, Housing Starts and minutes from the most recent meeting of the Fed’s Federal Open Market Committee. The minutes may provide additional insight into how Fed policymakers are approaching the decision about raising the target federal funds rate.
Nov 13, 2015 | Home Buyer Tips
Switching houses? Then now is the perfect time to finally go through all the clutter and make some tough decisions about what needs to move and what needs to go away.
There is no point in waiting until after a move to go through the junk lying around, as tempting as it may be, so here are five ways to decide what should find a new home before a move.
Start With A Trip To The Dump
Before starting the move, grab some garbage bags and do a sweep of the house, making sure to toss out anything that needs to go to the dump. This will clear up the home of anything unnecessary and makes it easier to throw out some items when there’s no decision making pressure.
Decide What Furniture Will Be Replaced In Advance
A new home often means new furniture. By deciding in advance which items will be purchased new, homeowners can prepare to either sell or give away their older furniture before they move. Saving space and cutting down one extra step after moving in.
Sell Or Donate What You Don’t Need
Holiday decorations are the perfect example of items that are only taken out once a year and tend to be replaced before they are ever reused. There are probably similar boxes or shelves in every home filled with items that will never be used again but are still held onto.
Now Is A Good Time To Go Through The Closet
Clothes are not looked at as seriously as other objects when clearing space because they can easily fold down or be tucked away. It’s simpler for most people to just throw all their clothes in a box or travel bag before moving, but this is the perfect time to finally go through and donate anything that doesn’t fit or is never worn.
Be Patient With Children
It is hard for kids to part with their toys, even ones they haven’t used in years. These are part of their identity and telling them what they need to throw out can impact them emotionally and make a move that much harder. Sit down with the children and have a long talk about moving and donating items to see if they are ready to go through their things.
Thinking about buying a new home? The service of a real estate professional can go a long way in finding you the home of your dreams in the budget you are looking for.
