Jun 29, 2016 | Home Mortgage Tips
Once you’ve purchased a home and decided on a move in date, it may seem like a lot of the hard stuff is over, but you still have one of the most important things relating to such a large purchase to think about: the payments! If you’re looking for a few tips on ways to approach your monthly payment, the following will steer you in the right direction so you can broach your mortgage schedule successfully.
Set Up A Payment Schedule
Many people have been in the situation of neglecting their phone or credit cards by forgetting about the payment due dates, but this can cause a lot of strife when it comes to an investment as large as your home. Instead of leaving it to chance, choose a day each month and ensure that your bank is transferring the funds over automatically so you never have to worry about missing a payment. This will help you retain a reputation as a responsible borrower and it means you won’t have to deal directly with this important expenditure each month.
Be Aware Of Ways To Pay
Instead of being in the dark about ways to pay your mortgage each month, talk to your bank about your options for making your monthly payments in a timely, hassle-free manner. Before you get into the nitty-gritty of home ownership, look into this as soon as you’ve signed off on the papers so you know the best way to approach each month. This will prepare you for your approximate total mortgage payment.
Is It Really Affordable?
If you’re associated with a lender you trust, you’ve probably already been made aware of the amount of house you can and can’t afford, but ensure you’ve sat down and thought about what all the added interest on your home means. While it can certainly be a huge financial commitment for anyone to commit to a monthly mortgage payment, being able to swing the expense consistently is the difference between financial well-being and a purchase you’ll come to regret.
Making the decision to invest in a home can be one of the most exciting things you’ll commit to in adulthood, but ensure you’re aware of just what your monthly mortgage means so that it’s not something you’ll look back on. If you’re currently on the market for a home, contact your local mortgage professionals for more information.
Jun 17, 2016 | Home Mortgage Tips
Home ownership may be one of the most familiar goals of adulthood, but there’s more than one reason why so many people flock towards this type of investment and leave the rental market behind. If you’re trying to decide if you should make the big plunge towards buying, here are some benefits of saving up for a down payment and finding the right place to settle in.
It’s More Economical
Many people eschew home ownership simply because it can be hard to wrangle together the funds for a down payment. However, while a monthly rental is money you’ll never see again, the money you put down on a mortgage is being invested back into your home, making for a solid investment you can capitalize on later.
Instant Tax Deductions
The interest that you pay on your mortgage payment can be one of the most tumultuous aspects of purchasing a home, but you may not know that you actually have the ability to deduct many associated costs on your taxes. From origination fees to property taxes, there are plenty of costs that go along with your home that can be claimed for a refund when tax time comes!
Paying A Lower Price
The real estate market fluctuates every day, but one thing is for the certain: the median price of a home is on the rise. While low inflation rates may not be ideal if you’re selling, they can mean a better deal if you’re delving into the market for the first time. Just remember, it’s important to buy a home you can afford as anything that goes beyond your budget is not a solid investment.
A Built-In Savings Account
It may be important to have liquid assets outside of the equity you have in your home, but many people struggle to pay off their home and save money at the same time. While saving outside of your monthly mortgage payment is still important, putting money down on a home is an act of investing, and it’s one you’ll likely make a solid profit on when you decide to sell.
There can be many financial benefits to renting in the short term, but purchasing a home is a more solid financial decision when it comes right down to it. If you’re considering a home and would like to know more about your options, you may want to contact one of our real estate professionals for more information.
Jun 9, 2016 | Home Mortgage Tips
From saving up for a down payment to sussing out the ideal lender, there are so many things involved in purchasing a home that can make it seem like a rather complicated undertaking. However, like a lot of things in our lives, technology has streamlined the process in recent years. If you’re currently searching for a home on the market, here are some new technological advancements that may make buying a little easier for you.
The Smart Phone Advantage
The paperwork and requirements associated with a mortgage may not have changed much in recent years, but smart phones have provided us with the instant ability to see all the necessary documents from anywhere. While there was once a time it required a lot of time in front of a computer, smart phones have enabled people to fill in, review and reply to documents on the go, which makes for a much more efficient – and mobile – process.
The Implementation Of The E-Signature
It may seem like something that has been around for a while, but up until recently an approving signature on a document had to be provided in person. With all the mortgage documents that are needed to get the ball rolling, this type of approval took up a lot of extra time. Nowadays, instead of having to rush out to sign a paper, our mobility and legal laws enable anyone applying for a mortgage to be able to provide an e-signature, which means there is no waiting around on the backend.
Consult Your Local App
Almost everything has an app these days, and the mortgage process is no different. While there is still a lot of paper and information required in order to get approved, the growing availability of mortgage apps enables you to instantly determine how much your monthly payments will be and what the real cost of your home is when it’s all added up. Instead of the guesswork, these apps can help you answer the question of whether or not a home is the right price.
The mobility and ubiquitous nature of today’s technology has made a lot of things much easier, and the mortgage process is no exception. From apps that can better manage your mortgage to the use of e-signatures, there’s no reason getting a mortgage loan has to be rife with stress. If you’re looking into buying a home, please contact one of our real estate professionals for more information.
May 19, 2016 | Home Mortgage Tips
So you’ve been a homeowner for some time. You’ve been faithfully paying off your mortgage for years, and you have a fair bit of equity built up in your home – and that makes you proud. But now, you’re wondering what good equity is if you’re not using it.
How do you actually use home equity? And how do you leverage it to get a high return for low risk? Here are just a few options you may want to consider if you’re looking for something to do with your equity.
Use A Home Equity Loan Or HELOC To Pay Off High-Interest Debt
If you have a certain amount of money invested in your home, you can borrow against that investment by taking out a home equity loan or a Home Equity Line of Credit (HELOC). A home equity loan is ideal for borrowing a large amount of money for a specific purpose, whereas a HELOC works much the same way a credit card does – you can use credit as needed, then pay back what you owe. And if you have a lot of high-interest debt, one of these vehicles could be a great way to pay off your creditors – while it may seem like borrowing from Peter to pay Paul, you actually save thousands of dollars in interest rates by paying off high-interest debt using a lower-interest HELOC or home equity loan.
Buy An Investment Property With A Home Equity Loan
If you’ve been looking to enter the real estate investment market but haven’t had the liquid funds for a deposit, leveraging your home equity in the form of a loan can get you into the landlord game quickly and easily. This is a smart move because while you are taking on more debt, you’re doing so in order to create a new income stream. Ideally, you’ll want to buy a duplex or a home with a granny suite so that you can maximize your investment by renting out more than one dwelling space.
Downsize To A Smaller House And Invest The Difference
Perhaps you’re living in a large house that has seen its value appreciate in recent years, and you’re looking to move in the near future. Selling your large home and moving into a smaller, less expensive home is a great way to simply turn your home’s equity into cash – cash that you can invest.
Leveraging your home equity can be a smart move if it’s done with a larger goal and a solid strategy in mind. But when done irresponsibly, taking equity out of your home can have severe consequences. Talk to your local real estate professional today to learn more about smart options for leveraging home equity.
May 12, 2016 | Home Mortgage Tips
Making renovations that are energy efficient is not just a great way to reduce energy output, but it’s also an effective way of decreasing monthly utility costs. It serves as a one-time investment that will save money in the long run.
However, renovations are costly and not everybody has the extra finances required to make energy efficient changes. This is where the VA’s energy efficient mortgage (or EEM) program comes into play.
The program is designed to allow veterans to apply for a new mortgage or refinance an existing one with extra funds to renovate the home to be up to energy efficient standards.
The Three Tiers Under The VA’s Energy Efficient Mortgage Program
The VA has three tiers for the cost of renovations to be done under the EEM program. The lowest, and easiest to be accepted for, is for improvements that will total under $3,000. A list of costs or a contractor’s quote may be required in the application process.
The second tier is for renovations that will cost between $3,001 and $6,000. This will require the homeowner or homebuyer to get a Home Energy Rating System report to detail how efficient a home is currently and what can be done to decrease its HERS rating.
The final tier is for any improvements to the home that will cost over $6,000. This is the most difficult tier to receive acceptance for as both the Department of Veterans Affairs and the private lender will need to approve the renovations.
Types Of Improvements Under The EEM Program
The program covers a variety of renovations for the home. These include: new insulation to walls, floors and ceilings, solar powered heating and cooling systems, thermal doors, thermal windows and new caulking and weather stripping.
There are also items that will not be covered by the program, including new roofing, vinyl siding and air conditioning units.
Using The EEM Program To Receive A Larger Loan
Any veteran or currently active military member looking to buy a brand new home can still benefit greatly from the energy efficient mortgage program. If a new home undergoes a HERS report and passes as being energy efficient, this can be applied to a VA mortgage to receive as much as $6,000 extra on the loan.
Speak with your local mortgage professional to go into more detail on the intricacies of refinancing under the EEM program and whether or not your home will qualify.
Mar 31, 2016 | Home Mortgage Tips
If you’re considering whether home ownership is the right decision for you, there are lots of different factors you’ll want to take into account. Do you want to keep moving around, or are you ready to lay down roots in a community? Are you prepared for the additional upkeep that home ownership requires?
But one of the big factors in home ownership that few potential buyers consider is the tax benefits of getting a mortgage. Although it may seem counterintuitive, getting a mortgage on a property that you own can reap lots of dividends come tax time.
So how does a mortgage work for you and help you keep more of your hard-earned money? Here’s what you need to know.
Mortgage Interest Deductions: How Your Mortgage Interest Saves You Money
If you’re a homeowner in the United States, your mortgage interest is tax deductible. The mortgage interest tax deduction was introduced in 1913, and is one of the longest standing and most used tax deductions out there. The deduction allows you to deduct all of your mortgage interest payments from your federal taxes.
But in order to deduct your interest payments, you’ll need to meet certain basic eligibility requirements. Firstly, you’ll need to file Form 1040 and itemize your deductions on Schedule A in order to be eligible. You’ll also need to be the primary borrower named in the mortgage – you can’t deduct interest on someone else’s mortgage, even if you’re the one making the payments.
And finally, you need to (at some point) make a payment on your home. Note that rental properties are not usually eligible for a mortgage interest deduction (though there are some exceptions).
First-Time Buyer? Mortgage Credits And Other Buyer Programs Keep More Money in Your Pocket
If you’re a first-time buyer (and even if you’re not), you’ll have access to a variety of new buyer incentives and mortgage tax credits that other buyers don’t receive. Firstly, as a first-time buyer, you’re able to take out $10,000 from your traditional or Roth IRA at any point during your lifetime – without paying the 10% penalty for withdrawing early. There are also several credit programs for buyers, including the Residential Energy Credit, which gives you up to $500 toward any home improvement project or equipment purchase that makes your home more energy efficient.
It may seem like getting a mortgage is a great way to spend money, but it’s also a great way to save money through various government tax programs and rebates. A trusted real estate agent is the best way to learn more about the various tax credits and incentives available for home buyers, and we’d love to help!
