Saving Money on Your Mortgage

If you want to save money on your home mortgage costs, picking a mortgage loan that will cost you less in the long-term is more effective than picking a loan with low monthly payments. The quicker you can pay off your mortgage, the less you will have to spend on interest payments.

If you have already taken out a mortgage, there is still hope! These tips can help to reduce the total amount of interest you’ll pay by increasing the speed with which you repay the loan, which in turn reduces your long-term interest costs.

Compare offers

It always pays to get offers from several lenders when you’re shopping for a mortgage. Offers can vary substantially. Especially if your credit score is low, you shouldn’t accept a high-interest rate mortgage without looking for a better offer.

Don’t forget about the fees

One factor that increases the cost of your mortgage is the fees or points lenders add on to the deal. Look at these carefully, and don’t be reluctant to challenge fees that seem too high, or unreasonable costs such as unnecessary insurance. Compare offers using the annual percentage rate (APR), which includes both the interest rate and the fees.

Shorten the term of your loan

If you intend to be in the house for some time, you can lower your long-term loan costs by choosing a shorter mortgage term. This will increase your monthly payment but enable you to save significantly over the life of the loan.

Make payments more often

Making extra payments helps to reduce the principal, which will then reduce your total interest payments significantly. Choosing to pay biweekly (versus once a month) can cut the amount of interest you pay since your principal decreases more steadily. And, since there are 26 two-week periods in the year, you actually make an extra monthly payment each year, further reducing the principal amount owed.

10 Things to Think About Before You Choose to Relocate

Before you choose to uproot, think about why you want to move. What are the pros and cons of relocating? How will this affect your job? Your family? Your friends? There are a lot of things to consider when relocating, here are some tips to help you out!

1. Will you be close to any family members or friends in your new location?
2. Will your cost of living increase or decrease after your move?
3. How will you go about finding new doctors, dentists, schools, etc. for your family?
4. Do you have a choice in relocating? Or do you have to move because of your job? (If you have to move because of work, there are typically benefits that your company will provide that will make moving and relocating easier on you)
5. What is the new area like? Make sure to visit more than once, and take family and friends who might be able to draw your attention to things (good or bad) that you didn’t notice before.
6. How long will you be staying in this house? Moving is expensive, so don’t make a hasty decision to move only to find out that this house isn’t what you thought it would be.
7. Contact a real estate agent in the area. He or she should be able to tell you a lot about the community, homes for sale, and much more.
8. If you’re not sure about a place, but you’re determined to move, consider renting instead. Then, if you need or want to leave, you can.
9. Look at your finances. Can you afford to relocate? If not, it’s best to wait.
10. Don’t relocate because you are unhappy with any current situations. Breaking up with your significant does not typically indicate that you need to move across the country. Make your decision with a clear mind.

Information in this blog was paraphrased from this Inman News article.

 

What to Do (and Not Do) If You’re a First Time Homebuyer

DO

• Research. Coldwell Banker’s Home Price Comparison Index and RealtyTimes’ Market Conditions are great resources for learning about current and local housing market trends.
• Know your credit score. It is usually the case that, as a first time homebuyer, you will need to take out a loan to pay for your new home. If you don’t have a high credit score (750+), you may not be able to be approved for a home loan. You can find out your credit score for free by going to AnnualCreditReport.com.
• Ask for help when you need it. Unless you’ve been trained and certified in real estate, chances are you’re going to need to hire a local real estate agent. Additionally, you will need a home inspector, and a mortgage broker, just to name a few. These people are all experts in their field and can help you find the perfect home for the perfect price-if you let them.
• Make compromises.  Some things we need, like running water and solid flooring, and some things we want, like Jacuzzi tubs and 8 fireplaces. It is important to separate your wants from your needs so that you can stick to your budget.

DON’T

• Buy the first house you see. This is a great time to be a buyer right now, as there are thousands of houses out there with “FOR SALE” signs on the lawn. Buying a home is a big investment and it will affect the rest of your life, so take your time in searching and settling.
• Let lenders trick you into thinking you’re richer than you are. It is your responsibility to know how much you can afford for a monthly mortgage payment. Keep in mind that you need to take into account any existing car payments, college loans, down payments, cable bills, etc. that you will also have to pay. Choose a home and a price that lets you live comfortably, rather than paycheck to paycheck.
• Sign the papers if you’re unclear on the conditions. Just as you need to research the housing market, you also need to research loans and mortgages. Take your time and find one that works best for you and your lifestyle, and find someone to help you understand every part of the loan.

The information in this blog was paraphrased from: http://realtytimes.com/rtpages/20080416_firsttimebuy.htm

 

8 Things to Contemplate Before Remodeling Your Home

Most homeowners decide to remodel because they want to put their home on the market, have just moved in and want to update, or have lived in their home for many years and it needs an overhaul. Giving your home a fresh update is a great idea if you can afford it. Before you reach for that hammer, here are 8 tips to consider so your project is smooth sailing.

1. Expect bumps in the road. If you expect a few hiccups, they won’t come as a surprise when they happen. Tools break, helpers get sick, supplies run low, but keep your focus on the finished product. You will run into challenges, but have a plan for a way to distress when times like these arise. Take time to relax and revamp yourself.
2. Have a plan. Do you plan on putting your home on the market soon? If so, you shouldn’t make any major changes. Doing so could significantly increase the price of your home and it may not be suitable in your neighborhood. Do you plan to stay in your home in the foreseeable future? If so, you need to consider the impending needs of your family. For example, weigh the price of a kitchen remodel with the price of rising college tuition.
3. Envision. There are home design software programs to help you visualize what you want to remodel. Do your research and envision what you want to do before you hire an architect.
4. Financially Plan. Try to set a limit and make sure you are able to cover any extra spending with back up funds. It is extremely common for home projects to go over budget, be prepared.
5. Ask for advice. Family, friends, and neighbors have all done their share of home remodeling, ask them about their experiences. They can help you with suggestions on great contractors or a good place to buy supplies. The internet is also a great tool to find information on common obstacles as well as useful remodeling tips.
6. Get legal permits. You must acquire a legal permit before you make a structural change to your home to guarantee your project is in accordance with safety regulations and building codes. The paperwork for your permit can be done by a general contractor, but smaller independent contractors may not do them for you. Overall, whether you have a general contractor or independent contractor, it is the homeowners’ responsibility to acquire a permit.
7. Prepare a contract. A written contract will help you avoid any misunderstandings and hidden fees. It guarantees that everyone involved understands exactly what is being done, when it will be done, and how it will be done. Be sure to lay out guidelines for behavior and actions regarding problem situations.
8. Put together a team. Whether your project is big or small, a team of helpers can make your remodeling job much easier. Depending on your plan, you will want to hire architects, builders, plumbers, etc.  Be sure that every member of your team understands your vision and plan for the project. Even if your helper comes highly recommended, another team member may be a better fit if you don’t share the same vision.

The information in this blog was summarized from: http://architecture.about.com/cs/repairremodel/bb/remodel.htm

 

 

How to Get the Most Money Out of Your Home

As a seller, there are many things to put into consideration to ensure you are getting the most money for your home. The more traffic you accumulate through your home, the higher chance that perfect buyer will see it. Here is a list of key topics to consider as a seller to get the most money out of your home.

Creating Curb Appeal

A first impression of your home will be a lasting impression.  If you have great curb appeal, it will ensure you are getting the best price for your home. During the spring and summer months make sure to manicure your flower beds and keep your lawn neat. Bright and colorful flowers are also very inviting and appealing. During the fall and winter months make sure the fall leaves are cleaned up and the snow is freshly shoveled.

Make Repairs

• Paint is the cheapest investment you can make in attracting potential buyers and getting the most money out of your home. Paint the walls that are outdated, dirty, or unattractive.
• Make sure your appliances are in great working order. Buyers like new appliances and replacing your old ones can attract many potential buyers.
• Small problems can seem like big issues to buyers. Fix any plumbing issues you may have and repair small things, like your cabinet doors.

Stage Your Home

A professional stager can arrange your furniture and other items in your home to create more appeal to the potential buyer. Rearranging or removing furniture can completely transform your home. This is one of the most important places to invest your money if you cannot do it yourself. If you have an eye for detail, then you can do this on your own.

Price it Right

A realtor will give you information regarding comparable homes in your area and their list/sell price. They will let you know how your home compares to other in your vicinity; provide you with the average sell price, and how many days’ homes in your area were on the market. This information will give you a better idea of what to list your home for and how long to expect it to be on the market.