There are many people who refinance their homes throughout their lifetime. There are a few reasons for that – which we will discuss today! Owning a home is not only something you should take pride in, but also a way you can use as an investment tool as well.

Some people will refinance their home in order to get a better (lower) interest rate. If your current interest rate is 5% and it goes down to 3.5%, it is something to think about. Before making the decision on our own, it is always recommended that you speak with a professional about your options. From the outside looking in, a 1.5% interest rate drop sure sounds enticing!

Then there are others that may have come into a significant amount of money and want to pay off their mortgage a quicker. For example, if they originally took out a 30-year mortgage and decide that they want a 15-year mortgage, they may refinance to a 15-year mortgage instead.

The reverse is also possible. What that means is…if you currently have a 15-year mortgage but can no longer afford the monthly payments, you have the option to refinance to a 30-year mortgage. By doing this, you would decrease your monthly payments.

We want to remind you that you should always pay off your mortgage in a timely manner and save as much money as possible in the process. Tough times happen and sometimes homeowners need money to pay for debt, education, or other things that may come up in life. You are able to refinance your mortgage and pull out some of your equity. As we mentioned earlier, please be sure you speak to a professional before making a decision such as this.

If you need to remove someone from your mortgage (think: divorce) you can refinance your mortgage to remove him or her.

Unexpected things happen in life sometimes and you have to roll with the punches! Before making any of these decisions, please do not forget to speak with a professional and see what advice they have for you.

For those people who want pay back on your mortgage as soon as possible, you may want to consider making extra mortgage payments. Some people will not dabble with it in case it has a negative impact, somehow, on them. Be sure to speak with someone reputable in regards to paying it back early if that is something you wish to do.

To begin with, you can just add a nominal additional amount as extra payment toward the principal. It can be as small as ten dollars. Over the course of your loan, depending on the interest rate and other facts, you could save a substantial amount of money. It is imperative that your loan servicer knows that these extra payments are to go toward the outstanding principal.

It is beneficial for you to make extra mortgage payments early on in your loan. This helps to lower interest in future months. The reason for this is that in the beginning of your loan, the payments are “interest-heavy.”

You could also save money, in the long run, if you make a significant single extra mortgage payment. Again, it is most beneficial if you make a large additional payment early on in your loan. You could also make just one extra mortgage payment every year. Some people will do this after receiving an unexpected bonus from work or after they receive their tax refund.

No matter which method you decide to use to make extra mortgage payments, we cannot stress enough that it is necessary to be sure the loan servicer is well aware that what the money is suppose to go toward. Also be sure you will not be penalized in any way for the extra payment.

Most people have a thirty-year mortgage – that is the most popular type. There is a twenty-year mortgage option! The twenty-year mortgage has an interest rate that does not change and the rates are typically a little lower. You will also have paid less interest but a higher monthly payment. A huge perk to the twenty-year mortgage is that you will own your home faster and you will save money by not having to pay as much of interest.

Saving money is always something you want to try to aim for! Again, you’re saving money by not having to pay so much in interest. In some cases, the monthly payment may not even wind up being more expensive than a thirty-year mortgage option. Also, some of the twenty-year mortgage options have a lower interest rate.

Some other things to consider are if you plan to retire soon and think you’ll be on a fixed income. If that is the case, a shorter mortgage would be helpful. Also, if you want to build equity and purchase another home in the near future, you would want a mortgage with a shorter length of time.

There are a lot of things to consider when you are trying to decide on which type and length of mortgage you want to have. As always, we are here for you throughout the whole process!

When you see that a sale is pending, that means that the seller has accepted an offer but the deal is not completely closed yet. The property that is listed as pending means the listing is not an active listing but there is still legal work waiting to be processed and the loan is waiting to be closed. There is potential for a home that is listed as a pending status to become an active listing again if the deal falls through. We will discuss some reasons for the pending listing to not go through in this post.

A pending sale will not go through for a few financial reasons. To begin with, if the buyer makes an incredibly large credit card transaction or even opens up a new credit card, you may be disqualified for your loan. Have an open conversation with your loan officer in regards to your finances – especially if it is completely necessary for you to make a large purchase before the sale is finalized and goes through.

If there is an open lien or bill on the property being sold, it is possible that it will affect the finalization of the sale. Until open liens are taken care of, the lender will not allow the sale to go through. Also, if there are any clerical issues, including title work issues, the sale may not go through.

Another reason a pending listing may fail is if a home inspection fails and the seller does not tend to the issues that were found during the inspection.

It is not common for these issues to occur but it is possible. If you have any questions in regards to the process, please do not hesitate to reach out.

Especially in today’s market, real estate can be a great investment – whether it is for you to live in, as a flip and sell property, or even rent it out to make a profit. Regardless of the reason, there are a few things to think about before taking the plunge!

We have talked about this before, but we will remind you of it again…your down payment is important! Fifteen to twenty five percent down payment should be made if you are purchasing a home for investment purposes. Your interest rates might be higher so the more you put down, the better.

You need to think about a property management company if you do not want to be a landlord and take all the responsibility that comes with that. As a landlord, you need to be available twenty-four hours a day, seven days a week. If something goes wrong…in the middle of the night or while you are on vacation, you will be expected to find a solution in a very timely matter. If you are unable to get in touch with, your tenant will be very unhappy. Although a property management company comes with a fee, your stress level will be decreased as not only will they help you find a tenant, but they will help with fixing repairs, paperwork, etc.

We would recommend you try to figure out how much income you will make from your rental property, before taking the plunge and purchasing a home for investment purposes. We suggest you first figure out what the rental fee is in the surrounding area of the potential home. This will help you figure out if you will be able to at least cover the mortgage expense.

One last piece of advice we have for you is at the event you do not have tenants in the home for a month – or more – will you be able to pay the mortgage? Something else to take into consideration is, if tenants damage your property, will you able to afford the repair cost? Any unexpected fees that arise, will you be able to cover those too? For example, if the air conditioning unit goes out, can you afford to pay for that?

Investment properties are a big decision! We want to make sure it is the right one for you and your family. When you decide that it is the right decision, we will be here for you throughout the whole process!

Buying a home is quite an exciting time! There are a lot of things to think about and keep in mind when making your decision.

To start with, your mortgage options are something to consider. Typical mortgages last thirty years. You do have different options, though! Some factors that take into account your other options include: mortgage length, down payment, and government assistance. Someone like myself would be the best person to talk about and discuss all of your options. There are a lot of things to consider when it comes down to it and I am here to help!

We have talked about this before, but your credit score is also very important. Before falling in love with your dream house, make sure you have a high enough credit score to ensure no surprises as you are in the process of purchasing a new home.

Home warranties are also something else to consider when choosing a home to purchase. These types of warranties are not required in homes so not all of them will have it available. If you come across a home that has one, it is something to consider, as any repairs of what the warranty is on will be of no cost to you. Keep in mind that all home warranties are different but for the most part, that is how they work.

In the past, we have also reminded you to make sure you have enough funds to cover your closing costs, furniture, appliances, etc. These factors are some that often get overlooked and it’s important not to forget about them! Also, don’t forget to look into the neighborhood as well – crime, safety, traffic, schools, etc.

There are so many things to take into consideration when purchasing a home. If you need any help thinking of other things to think about, we would be happy to help.

Lets think of the best-case scenario – you purchased your new home and you were approved for a mortgage! Congratulations! Now time for the “fun” part – time to move! It is no doubt that moving brings forth not only a lot of happiness, but likely a lot of stress as well. Typically, there are two types of people – one that loves to move and start a new adventure and one that despises the whole process. There are a lot of factors that come along with moving that you have to make sure you take into consideration. Most of these factors revolve around cost.

Your first option is to do everything yourself. If you are a family of two (husband and wife) there is usually only so much that two people can do. You can ask family and friends to help with big items, but you will still want to invest in a moving truck. Also, it would be nice to repay your family and friends for their help in some way shape or form – so that will cost some amount of money. It depends on the type of moving truck you decide to rent as far as what the cost will be; but at the minimum, it will be about $20 per day for the rental of the moving truck.

Another option is to hire a moving company if you are moving locally. For some quick numbers…a one bedroom apartment will cost anywhere between $200 and $500 to pack up and move within a three to five hour time span. A four bedroom house will cost anywhere from $800 to $2,000 to move and can take up to ten hours (or more) to pack up and move. The amount of time and money for spaces in between these two sizes will vary. If you have thought about hiring a company from the start and saved enough money for it, sometimes it is the most efficient way. It is also less stress as well!

If you are moving out of state, the prices will be more expensive – especially if the movers are bringing your possessions to your new home. The cost for something like this depends on the distance you are moving as well.

You do have the option to do a combination of things. For instance, you could hire people to pack your belongings in a rental moving truck and you drive to the new destination.

Luckily there are a lot of options for you! Whatever it is, we recommend you factor them in when you are starting the process of purchasing a new home. It will be less of a surprise (and less stress!) when it comes time to move.

If you are opening your home to a loved one who is elderly or your elderly family member (or friend) is living alone, there are some things to take into consideration so not only are they safe, but tasks that they need to get done can easily get done. Falling is a huge danger that the elderly have. It is estimated that as many as 5,000 people a year will die shortly after falling. That is a significant number! Keep in mind that there are about 75% fewer fall when someone can be cared for in their own home instead of a facility.

If a room is cluttered, it will be more difficult for someone to get around with a walking aid. Make sure all rooms have a limited amount of furniture and other “stuff.” Also, be careful of any rugs that have the potential to be tripped on. It would be best to remove any extra rugs in the home as well.

When it comes to the bathroom, there is a lot to take into consideration. For the bathtub, rails would be helpful to get in and out of the bathtub. A non-slip matt on the bottom of the tub would also be helpful. If possible, a walk-in shower would be the most conducive and safe. Depending on the size of a person, a toilet may be too low to the ground for comfort and safety. There are options to adapt the seat to make it higher.

When it comes to the kitchen, there is a lot that can be done! Counter tops, drawers, and shelves that are higher up would be easiest for the elderly to reach for. If cooking is still on the table and possible, a talking scale or a scale with big numbers, would be most beneficial. There is also a great deal of kitchen gadgets that can be changed out for older gadgets.

We thought that this information would be important to the ever-growing population of people who care for their elderly family members. If you have any other tips, please share them so others will be able to benefit as well.

Fall is coming! For some of you, that means time to do a major remodel. If you’re planning on doing some, if not all, of the work yourself, it makes sense why you’ve waited for it to get cooler outside. If you are not able to pay for the remodel out of pocket, there are some options for you. Keep in mind that remodeling adds value to your home.

If you were already considering refinancing the mortgage you currently have, you have the option to add extra to your loan and take some money out to finance your remodel. We would not recommend that you decide to refinance in order to remodel – that is not a wise decision.

There is an option to take out a personal loan for a remodel. Personal loans tend to have higher rates though. It makes sense as the lender has a greater risk since nothing is up for collateral.

Home improvement loans are available as well – in the form of a second lien. You can either take out an equity loan or a home equity line of credit.

If you are able to afford paying for any of the remodel in cash, we would recommend you do that and then finance the rest. It is always wise to minimize the amount of your loan as much as you can.

If you decide to go with a remodel, do not forget to take before and after photographs. They are always fun to look back at!

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.