Importance of Home Equity

July 25th, 2019 Posted by makialis florida mortgage 0 thoughts on “Importance of Home Equity”

Right now, home equity is flourishing. To make it simple, home equity is the value of your property minus the loan on your property. Home equity is important when you want to sell your home or refinance your mortgage. There are a few ways you can build equity in your home.

One very simple way to build home equity is by paying your mortgage when it is due. As long as your mortgage is not an interest-only home loan, you pay your interest and some of your principal.

A homeowner also gains home equity if the value of their home increases. This is not something a homeowner has any control over as if the value of a home decreases, their home equity will decrease as well.

When paying your mortgage each month, if you pay a larger payment than what is due, you will be paying more toward the principal of your loan. This helps you to pay your mortgage quicker, thus gaining home equity quicker as well. If you do not want to (or are not able) to pay larger payments each month, you can also get on a biweekly payment plan. By paying in this fashion, you will save in interest and build home equity faster.

Making improvements to your home, when the value is more than the coast, your home equity will be increased. If you are a handy person and able to do some of the work on your own, you will save on labor cost. Keeping up with your home, maintenance wise, will also create more home equity. For example, if your air conditioning is in good shape, when you go to sell the home, the potential buyer will not request a repair.

Keep in mind that if the house looks good when you go to sell it (a fresh paint job, plants and flowers everywhere, a clean home, etc.) the more likely the house will sell for more.

Building home equity does not have to be difficult. As you can see, there are some easy ways to build it.

Tags: florida mortgage, home equity

An Increase of “Free and Clear” Homeowners

July 18th, 2019 Posted by makialis florida mortgage 0 thoughts on “An Increase of “Free and Clear” Homeowners”

Ten years ago, it was very common for homeowners to have a home loan with an outstanding balance that was more than the value of the property. Now, thirty seven percent of homeowners in the United States do not carry a mortgage according to Zillow. This means that the homeowner is “free and clear.” Not only do they not have any further payments due, but also there are no liens on the title.

Homeowners paid their loan off on schedule or ahead of time. Some homeowners paid a prepayment or extra payments. Some of these “free and clear” homeowners also include those who may have the ability to pay cash up front. The term “free and clear” is a term associated with not having a mortgage as you still have to pay for ongoing home maintenances, utilities, etc.

There are a few factors that have increased the number of “free and clear” homeowners in 2019.

Recently, there have been record low mortgage rates. Some homeowners have decided to refinance into loans that carried a shorter term but their monthly payment stayed the same.

A majority of homeowners who fall into this category decided not to acquire any additional debt the last ten years. This has given homeowners the opportunity to make extra payments or pay more each time a payment was made when they were able to.

Another reason the amount of “free and clear” homeowners has increased is because currently there is an older population of homeowners. This older population has not moved for thirty (or more) years so of course they have been able to pay off their mortgage.

Just like anything in life, things can change in a moments notice!

Tags: florida mortgage, free and clear, homeowners

Paying Rent on Time Can Help Increase Credit Score

July 11th, 2019 Posted by makialis florida mortgage 0 thoughts on “Paying Rent on Time Can Help Increase Credit Score”

According to the Pew Research Center, between 2006 and 2016, there were 8.7 million renters! In more than 20 big cities, there are more renters than homeowners.

Just like paying your mortgage in a timely manner, paying rent (and utility bills) in a timely manner can increase your credit score. Rental payments can be reported to Experian, TransUnion, and Equifax. Those are three credit rating agencies. In the FICO 9 model, paying your rent back 100% perfect can increase your credit by almost 20 points.

Receiving a “reward” for paying rent on time is something that is likely to encourage renters to do it consistently. If you are renting from a large property management company, they are likely in some type of relationship with a Rent Payment Service. This type of agency is likely to report if renters meet the payment deadline. If you are renting from a private landlord, it is less likely for a Rent Payment Service to know you are paying rent on time. There are some groups you can join – PayYourRent, Cozy, or RentTrack. These groups ensure that your rental payment is reported.

If you want to increase your credit score before getting a mortgage, a great way to increase it is by paying your rent on time, consistently! Not only will you raise your credit score, but you are likely to have lower interest rates for home loans (car loans and insurance too!) available to you.

Tags: credit score, florida mortgage

Vacant Homes Sell For Less

July 3rd, 2019 Posted by makialis florida mortgage 0 thoughts on “Vacant Homes Sell For Less”

Redfin, a real estate brokerage, recently did a study that stated that homes that were lived in sell for more than vacant homes. On average, vacant homes sold for $11,000.00 less. The study also indicated that on average, a vacant home took an average of six extra days to sell. To some, it makes sense – empty homes are not as appealing. Also, imperfections are easier to see if rugs, coffee tables, beds, etc. are not in the home.

Even though homes that are occupied sell for more and quicker, on average, it is important to keep in mind that the home needs to be neat and decorated well. You can hire a staging company for this if your real estate agent does not offer it. Living in the house is a fine line…clutter and old looking furniture is likely to not help the house sell.

When potential homebuyers look at a house, they want to be able to visualize what the house looks like. If it has furniture from the 1960s, it will be hard for the potential homebuyer to look past it.

If you are on the hunt for a new home, keep this statistic in mind and remember that when you purchase the home, all the nice furniture will not be in the house when you move in! Also remember that statistically speaking, vacant homes sell for less!

Tags: florida mortgage, study

Homes for Heroes Grant

June 24th, 2019 Posted by makialis florida mortgage 0 thoughts on “Homes for Heroes Grant”

Homes for Heroes Grant

Are you or one of your loved ones a hero? If you are questioning what “hero” is considered to be, think: (current and former) firefighter, paramedic, law enforcement, military, nurses, doctors, teachers, etc. The reason this is mentioned is because there is a program called Homes for Heroes. If you quality for it, you are eligible to save money on buying or selling a home. Through the program, you can work with a real estate specialist when buying a home, or a mortgage, title, and inspection specialists when selling a home.

You do not need to work with every specialist, but each one you work with helps you to save money. Most homeowners choose to work with each one they have available to them so they can maximize their savings.

We are not affiliated with the program but want to make it known for potential homeowners, who are heroes, out there. The program is run through the Homes for Heroes Foundation. The foundation is a nonprofit and private charitable foundation that gives grants to eligible heroes to help with housing or emergency financial assistance. Within the last ten years, 28,000 heroes have saved over $45 million on their real estate transactions and $4 billion sold in real estate to heroes.

If you or someone you know is considered to be a hero, we suggest you take a look into this option!

Tags: florida mortgage, Homes for Heroes Grant

Getting Your Home Ready to Sell Tips

June 14th, 2019 Posted by makialis florida mortgage 0 thoughts on “Getting Your Home Ready to Sell Tips”

Getting Your Home Ready to Sell Tips

Once you’ve decided to sell your home, which we know is not an easy decision in itself, there are some suggestions we have to help get your home ready to sell. We want your house to sell as quickly as possible, as we are sure you want as well. Making small changes to attract attention to your home and make it stand out is the key.

To start off, we would recommend you really do a spring-cleaning! Not only that, but also depersonalize your home. When potential buyers enter a clean, decluttered home, they will feel like you’ve taken good care of the home. Having it clutter free will also make the home seem bigger. It will be tough to depersonalize your home if you are still living there, but not having a personal touch to the home will make it more appealing and less distracting for potential buyers.

You should do this all along, but keeping up with routine maintenance and repairs is very helpful when getting ready to sell a home. People who may potentially buy your home will take your house apart! They will look at every nook and cranny. By keeping up with the home, the home will be very attractive and appealing.

This may be common sense, but we want to remind you that a clean home may increase the likelihood of it selling! It makes a great first impression. You need to make sure you are consistent, though. Just because your kitchen is spotless, do not mean it is okay to slack in the closet department. Again, a potential buyer will look at everything!

There are staging companies you can hire to help make your home more appealing when it comes to decoration. The companies will bring their own furniture, artwork, etc. to help compliment the home.

Professional photographs will help your home to sell quickly. Although it is another expense, it will be a payoff in the end. High-quality and beautiful photographs will help your home stand out against everyone else.

If you have already sold a home, did you follow any of this advice? Are there any more pieces of wisdom you could share with potential sellers?

Tags: florida mortgage, Getting Your Home Ready to Sell Tips

Five More Cities Millennials are Loving

June 10th, 2019 Posted by makialis florida mortgage 0 thoughts on “Five More Cities Millennials are Loving”

Five More Cities Millennials are Loving

Like we talked about last week, there are some cities millennials have fallen in love with lately! The cities we speak about today, like last time, are in no particular order.

Option number one: Denver, Colorado

Denver is known as one of the most “green” and active cities. It is very pedestrian friendly, which is great for millenials who enjoy the great restaurant and brewery scene that Denver has. Although it is cold, the outdoor activities associated with the cold, skiing, hiking, road biking, etc. are activities millenials enjoy. The average rent is also fairly affordable.

Option number two: Nashville, Tennessee

Nashville is extremely diverse. Although country music is well known, the food scene is incredible as well. Job growth is increasing steadily as well. The average cost of rent is also one of the least of all cities we have discussed so far.

Option number three: Pittsburgh, Pennsylvania

Pittsburgh is extremely accessible and affordable. They also hold the title for the fourth highest density bar in the United States. Job opportunities and job growth are also another reason millenials are enjoying the cold, but prosperous city.

Option number four: Columbus, Ohio

Three great characteristics of Columbus for millenials are: steady job growth, affordability, and diversity. Columbus is also very family-friendly and has great restaurant options. For those millenials with a business brain, Columbus is ranked as “one of the best cities to start a business from the ground up.”

Option number five: Sioux Falls, South Dakota

Sioux Falls is so affordable that most people (even millenials) own a house there and do not rent. They also have a low unemployment rate! If finances are important to you, Sioux Falls is very budget-friendly. They are also known to be very pedestrian friendly, have great culture, and delicious food/drinks. Although there are other cities that pride themselves on nightlife, Sioux Falls is great for families.

If you’re looking to relocate and put down roots in a new city, which would you choose?

Tags: Five More Cities Millennials are Loving, florida mortgage

Five Cities Millennials are Flocking to

June 4th, 2019 Posted by makialis florida mortgage 0 thoughts on “Five Cities Millennials are Flocking to”

Five Cities Millennials are Flocking to

Millennials, those who were born in the early 1980s to the early 2000s, is the largest generation of all time. Because the group is so large, they are domination a few major industries – the business industry and real estate. Millenials are also starting families. They are drawn to cities where they will get the most out of their life. There are a number of things that millenials look at when deciding which city to move to – affordability, job growth, diversity, outdoor activities, and overall atmosphere – according to CubeSmart.

The cities we speak about today are in no particular order.

Option number one: Chicago, Illinois

Thousands of millennials live in the Windy City. Chicago is a very accessible and diverse city. If you want to partake in outdoor activities, they are plenty! It is also a pedestrian-friendly city as well. If you want to stay out late and enjoy good wine and food, there are many options for that as well. The cost of rent is pretty affordable as well.

Option number two: Austin, Texas

An amazing music scene, delicious restaurants, and full of outdoor activities, are some of the reasons millenials have fell in love with Austin. Austin is also fairly laid back, so it is not an effort to “fit in” or try to enjoy Austin – it just happens. The cost of rent is also decent as well.

Option number three: Miami, Florida

In case you haven’t noticed yet, outdoor activities is important to millenials. With all of the amazing Miami beaches, outdoor activities are covered! Miami is also know for a fun nightlife with great food.

Option number four: Minneapolis, Minnesota

Although the weather tends to get extremely cold, if you are a Vikings football fan, that cold will not deter you from Minneapolis! Other millennials are happy with Minneapolis because of the job industry. The job industry is booming, especially in health care and technology! The cost of rent is affordable as well.

Option number five: Kansas City, Missouri

Kansas City is very affordable to rent in. The food scene, even fine dining, is steadily getting better and better! The city itself is said to be very aesthetically appealing as well. Job growth is not only steady, but blossoming as well!

Of these five cities, which would you want to put roots down and purchase a home in?

Tags: Five Cities Millennials are Flocking to, florida mortgage

Goodbye Cold Weather

May 21st, 2019 Posted by makialis florida mortgage 0 thoughts on “Goodbye Cold Weather”

TITLE: Goodbye Cold Weather

If you do not live in Florida, we are sorry that the weather may not be warm there yet. Snow is still in the forecast for Colorado…oh my!

We have some ideas for you as to what we recommend you do to your home in the transition from cold to warm weather…besides spring-cleaning! These are more maintenance related items that we recommend to keep your beautiful home in order and functioning properly.

Start with the roof! Especially if your home is somewhere that it snows, check your roof. If you live in Florida, you probably already check your roof regularly, especially after hurricane-force winds attack your home. You want to make sure you do not have any missing or damaged shingles. Missing or damaged shingles can lead to water leaks.

Another thing that can lead to leaks is a clogged gutter. Make a point to clear out your gutters (especially before the rainy season!) Dirt and debris need to be removed from your gutters.

You should also test and check all smoke and carbon monoxide detectors you have in your home to make sure they are in working order. Most of the time, all you need to do is change out the battery.

It is recommended that you service your air conditioning and heating unit twice a year (especially if you have pets) but make sure you service it before the weather gets too hot. Having an air conditioning unit that does not function properly during the hot summers would not be any fun! Changing or washing your air filter is also important for your system to run efficiently and save you money.

We also recommend that you take a look at all of your windows, doors, and screens. Any cracks should be fixed immediately so your nice cool air does not disappear!

Are there any other items you have on your list of things to do as winter disappears?

Tags: florida mortgage

Mortgage Options

May 21st, 2019 Posted by makialis florida mortgage 0 thoughts on “Mortgage Options”

TITLE: Mortgage Options

There are a couple of different mortgage options to consider. If you are a first-time homebuyer, we want to make sure you are aware of your options. If you have questions regarding any of them, we are here to answer!

Mortgage types are specific to your lifestyle and your financial situation. Some of you may plan on making a twenty percent down payment and some of you may be seeking some type of financial assistance. When deciding on your mortgage option, you also want to keep in mind how long you plan on living in the home.

Fixed-Rate Mortgage

The interest rate on a fixed-rate mortgage remains the same for the life of your loan. The life of your loan can be from ten to thirty years. If you plan on staying in the home for a long period of time, this type of mortgage would be for you. Not only do you have security in your interest rate, but you also have security in your monthly payment.

Adjustable-Rate Mortgage

The interest rate on an adjustable-rate mortgage adjusts from time to time based on an index. If you do not plan to be in the home for an extended period of time, this type of mortgage may be for you. At each adjustment period, your interest rate and monthly payment will change. Some adjustment periods do not begin until the fifth year of your mortgage; so if you plan on selling your home before that time, this mortgage is for you. Adjustable-rate mortgages have not only a low starting interest rate, but also lower monthly payments for the initial term.

If you need help with any costs that occur at the start of your mortgage, take a look into Down Payment Assistance Loans. There are some state programs that are available to assist residents who need financial assistance. This may be in the form of a loan or grant and may assist with the down payment or closing costs.