tag:blogger.com,1999:blog-90933586195270640222024-03-15T18:11:05.467-07:00.Natasha @ SOLDbyNat.comhttp://www.blogger.com/profile/06771202476367259825noreply@blogger.comBlogger648125tag:blogger.com,1999:blog-9093358619527064022.post-13740948242190285312024-03-12T04:58:00.000-07:002024-03-12T04:59:05.048-07:00Adapting to Life's New Chapters <img style="max-width: 100%; height: auto; width: 100%;" processed="true" height="auto" width="100%" src="http://betterhomeowners.com/image.ashx/7c5d386d-b76e-4030-b6d2-6c3a66ef161a.jpg"><br> <br> <p style="background: white;"><span style="color: rgb(67, 67, 67);">All of us encounter major life events and they have the possibility of disrupting our lives temporarily, if not permanently.<span> </span>The homes we live in may have met our needs originally but due to a change in our life, it may no longer be adequate or the best fit for us, which will require a move. The decision to change one's living situation often comes as a response to these pivotal moments, and the reasons behind such changes can be as diverse as the events themselves.<span> </span></span></p> <p style="background: white; text-align: start;"><span style="color: rgb(67, 67, 67);">The number of things that can influence these changes is numerous.<span> </span>It may be the birth of a new child, or the ages of the children are getting such that you simply need more room.<span> </span></span></p> <p style="background: white; text-align: start;"><span style="color: rgb(67, 67, 67);">Marriages generally merge two households into one.<span> </span>The possibilities are endless, but it could be two single people or two single parents each with children who need the right space to blend the families.</span></p> <p style="background: white; text-align: start;"><span style="color: rgb(67, 67, 67);">A promotion, transfer, or a new job could require a change in housing, or maybe just make it more convenient to move closer to where a person is working.<span> </span></span></p> <p style="background: white; text-align: start;"><span style="color: rgb(67, 67, 67);">Countless numbers of people have moved as a result of health issues.<span> </span>It could be to get away from the altitude, or to a drier climate, or to a more rural area where life is simpler.<span> </span>The death of a spouse can be the impetus for the move.</span></p> <p style="background: white; text-align: start;"><span style="color: rgb(67, 67, 67);">Empty nesters and retirees have the freedom to make changes to their housing that will better adapt to their new lifestyle.<span> </span>The time may have come to seek a cozier, more manageable abode that suits the evolving needs of empty nesters.<span> </span>It may or may not lead them to a new city or state, but it can certainly include a different size or style home than they have currently.</span></p> <p style="background: white; text-align: start;"><span style="color: rgb(67, 67, 67);">These are just a few examples of how major life events can set the stage for changes in housing. If you are considering a move for one of these reasons now, you will probably think about it at some point.<span> </span>We can help you through today's market, talk about timing, and guide you through the decision-making process.</span></p> <p style="background: white; text-align: start;"><span style="color: rgb(67, 67, 67);">We want to be your trusted agent, ready to support you finding your dream home as you start this new chapter in your life. Take the first step, when the time is right, by connecting with us.</span></p> Natasha @ SOLDbyNat.comhttp://www.blogger.com/profile/06771202476367259825noreply@blogger.com0tag:blogger.com,1999:blog-9093358619527064022.post-3554511333745007132024-03-05T04:58:00.001-08:002024-03-05T04:58:50.800-08:00House-Hacking your way to multi-unit rentals <img style="max-width: 100%; height: auto; width: 100%;" processed="true" height="auto" width="100%" src="http://betterhomeowners.com/image.ashx/0b70db38-53cd-4a12-9594-6041bf14414f.jpg"><br> <br> <p style="background: white;"><span style="color: rgb(67, 67, 67);">House-hacking refers to buying a multifamily property on an owner-occupied mortgage, living in one unit and renting the others.<span> </span>If you're thinking about becoming a rental mogul, starting early is an advantage.<span> </span>Not only will you have longer to accumulate a larger portfolio, but you can also increase the leverage on the first owner-occupied acquisitions.<span> </span></span></p> <p style="background: white; text-align: start;"><span style="color: rgb(67, 67, 67);">Leverage is the use of other people's money to finance an investment.<span> </span>The higher the loan-to-value, the greater the leverage which can increase the yield.<span> </span>The lower down payment gives the investor more leverage which can increase the return on their investment.<span> </span></span></p> <p style="background: white; text-align: start;"><span style="color: rgb(67, 67, 67);">FHA, VA, Fannie Mae, and Freddie Mac each have programs for buying owner-occupied two-to four-unit properties with the same minimal down payment required for a single-family home.<span> </span>The advantage is that non-occupant investors must have a 20-25% down payment where the owner occupant is much less.</span></p> <p style="background: white; text-align: start;"><span style="color: rgb(67, 67, 67);">A qualified veteran could get into the first property with no down payment.<span> </span>FHA only requires a 3.5% down payment.<span> </span>And owner-occupants seeking to buy a multi-unit property with a conventional loan would need 5-10% down payment.</span></p> <p style="background: white; text-align: start;"><span style="color: rgb(67, 67, 67);">As an example, let's say there is a 2-unit property selling for $500,000.<span> </span>A non-owner-occupant investor would need to make a minimum down payment of $100,000.<span> </span>Whereas an equally qualified investor who was going to live in one of the units, would only be required to make a $17,500 down payment on an FHA loan or $25,000 to $50,000 on a conventional owner-occupied loan.</span></p> <p style="background: white; text-align: start;"><span style="color: rgb(67, 67, 67);">The difficulty is that there are not a lot of two-to-four-unit properties.<span> </span>In some cases, they may be older properties in older neighborhoods.<span> </span>With some searching, you might be able to find lots with the right zoning and get a builder involved.</span></p> <p style="background: white; text-align: start;"><span style="color: rgb(67, 67, 67);">It is certainly worth investigating to find out what is available in your area and surroundings.</span></p> <p style="background: white; text-align: start;"><span style="color: rgb(67, 67, 67);">Rental properties offer the investor an opportunity to borrow large loan-to-value mortgages at fixed interest rates for up to 30 years on appreciating assets with tax advantages and reasonable control that many other investments don't enjoy.</span></p> <p style="background: white; text-align: start;"><span style="color: rgb(67, 67, 67);">Some people consider rental properties the IDEAL investment with each letter in the acronym standing for a benefit it provides.<span> </span>It provides income from the rent which many investments do not have.<span> </span>Depreciation is a non-cash deduction from income that increases cash flow.<span> </span>Equity buildup occurs as each payment is made by reducing the principal owed.<span> </span>Appreciation happens over time as the value of the property increases.<span> </span>L stands for leverage that was explained earlier in this article.</span></p> <p style="background: white; text-align: start;"><span style="color: rgb(67, 67, 67);">The key to making this work is to be an owner-occupant in one of the units.<span> </span>After a reasonable period of time, you may be able to buy another four-unit as an owner-occupant before you need to start using a normal investor's down payment.<span> </span></span></p> <p style="background: white; text-align: start;"><span style="color: rgb(67, 67, 67);">In the meantime, you could have eight units that are increasing in value while the mortgage balance is decreasing with every payment made.<span> </span>If there is sufficient equity in the properties by the time you're ready to buy more units, you may be able to take cash out of the existing ones to use for the down payments.</span></p> <p style="background: white; text-align: start;"><span style="color: rgb(67, 67, 67);">This can be a great way to turbocharge your net worth by becoming an owner and a real estate investor at the same time.<span> </span>To learn more about rental properties, download the <a href="https://betterhomeowners.com/KissingBears/guide/4duFhqtCZUCGUVrZsm_LlA?C={Contact.Id}"><span style="color: rgb(13, 110, 253);">Rental Income Properties</span><span style="color: rgb(13, 110, 253); text-decoration: none;"> </span><span style="color: black; text-decoration: none;">guide</span></a></span> and/or contact me at to schedule an appointment to meet to answer your questions and discuss the possibilities.</p> Natasha @ SOLDbyNat.comhttp://www.blogger.com/profile/06771202476367259825noreply@blogger.com0tag:blogger.com,1999:blog-9093358619527064022.post-62714811487826839172024-02-27T04:58:00.001-08:002024-02-27T04:58:46.594-08:00The relationship between homeownership and net worth <img style="max-width: 100%; height: auto; width: 100%;" processed="true" height="auto" width="100%" src="http://betterhomeowners.com/image.ashx/a246c4b5-aaac-465a-989f-49415fa06e7f.jpg"><br> <br> <p>During the span between 2019 and 2022, the COVID-19 pandemic significantly disrupted both society and economic activities. Nevertheless, the latest <a href="https://www.federalreserve.gov/publications/october-2023-changes-in-us-family-finances-from-2019-to-2022.htm"> Survey of Consumer Finance</a>, which has recently been unveiled, highlights widespread enhancements in the financial well-being of American families during this timeframe, especially concerning their net worth.</p> <p>The median net worth of homeowners increased 37%, after adjustment for inflation, between 2019 and 2022.<span> </span>This is the largest three-year increase in the history of the modern Federal Reserve Board's triennial survey dating back to 1989 and more than twice the next largest one on record.</p> <p>The survey showed increases in both median and mean net worth were near universal across different types of families, grouped by either economic or demographic characteristics.</p> <p>For families who owned a home, the median net housing value, the value of the home, less secured debt, increased 44% between the same three-year period.<span> </span>The median homeowner has a net worth of $396,000 compared to approximately $10,400 for renters making the net worth of a homeowner 38 times the household wealth of a renter according to the latest data.</p> <p>Housing wealth, in this study, represented on average approximately 75% of the total assets of the lowest income household.<span> </span>In the middle-income distribution, housing wealth represents between 48% and 74% of total assets.<span> </span>For the top 10% of the income distribution, the wealthiest households' share was 33%.<span> </span>The study suggested that as income and net worth increases, the diversification of investments increases.</p> <p>Even though there was significant increase in the value of homeowners' property during this period, the debt secured by the residential property was relatively unchanged and the median amount of this debt decreased by less than one percent to $155,600 in 2022.<span> </span>During the same period credit card debt was stable.</p> <p><strong>Odeta Kushi, deputy chief economist at First American, summarized by saying <em>"For the majority of households that transition into homeownership, the most recent data reinforces that housing is one of the biggest positive drivers of wealth creation in this country."</em></strong></p> <p>Starting in 2022, mortgage rates more than doubled the rates during the fall of 2021 and continued to rise throughout 2022 and most of 2023 to the high 7% range which the market had not reached for 30 years.<span> </span>This rate affected buyers' affordability and challenged a belief that rates would stay low since they had been for over ten years after the Great Financial Crisis.</p> <p>While homeownership is still a major part of the "American Dream", would-be buyers are having to adapt to the higher rates.<span> </span>And even if rates moderate during 2024, the low housing inventory experienced across the country will continue to increase prices which favors current homeowners.<span> </span>It could take years to reach a balanced market.</p> <p>The challenged buyers should remember that homes have appreciated 5.56% annually for the last sixty years.<span> </span>The average mortgage rate in the same period is 7.74%.<span> </span></p> <p>Based on the impressive margin that homeowners have 38 times more net worth than renters and that the contributing factor is the home's equity, Buyers who can financially afford to buy now should investigate exactly what it will take to get into a home now.</p> <p>Download our <a class="Guide.2t8UpHE4I0a3evWeuNc5aw" href="https://BetterHomeowners.com/NatashaBazile/guide/2t8UpHE4I0a3evWeuNc5aw?C={Contact.Id}">Buyers Guide.</a></p> Natasha @ SOLDbyNat.comhttp://www.blogger.com/profile/06771202476367259825noreply@blogger.com0tag:blogger.com,1999:blog-9093358619527064022.post-45951471715282072942024-02-20T04:59:00.001-08:002024-02-20T04:59:29.732-08:00Understanding Credit Life Insurance for Home Buyers <img style="max-width: 100%; height: auto; width: 100%;" processed="true" height="auto" width="100%" src="http://betterhomeowners.com/image.ashx/7303a089-d846-4dff-a8ac-08e83c030ea0.jpg"><br> <br> <p>Credit life insurance is a specialized type of insurance designed to provide financial protection for borrowers and their families in the event of the borrower's untimely death. This insurance is often associated with loans, including mortgages, and is specifically tied to the outstanding balance of the loan. In the case of a home purchase, credit life insurance will cover the remaining mortgage balance if the homeowner passes away before the loan is fully paid off.</p> <p>In some cases, lenders may include the expense of credit life insurance in your loan principal. This arrangement means that you'll accrue interest on the combined amount, potentially resulting in increased costs over time. Consequently, opting for traditional life insurance, as opposed to credit life insurance, might be a more financially prudent choice to protect your family's financial well-being.</p> <p>Credit life insurance offers peace of mind to homeowners, knowing that their loved ones won't be burdened with mortgage payments in case of an unexpected tragedy.<span> </span>It can be a safeguard for their loved ones from inheriting the mortgage debt in the event of their death. It ensures that the home loan is paid off, preventing financial strain on surviving family members.</p> <p>Some lenders may require or recommend credit life insurance as part of the loan approval process, making it easier for homebuyers to qualify for a mortgage but it is not typically mandatory, and the borrower usually has the option to request its removal from the loan agreement.<span> </span></p> <p><strong>Advantages of Regular Life Insurance:</strong></p> <p>While credit life insurance serves a specific purpose, there are advantages to opting for a regular life insurance policy instead:</p> <ul> <li>Regular life insurance provides a broader range of coverage beyond mortgage debt. It offers financial protection to beneficiaries for various needs, such as income replacement, education, and long-term financial security.</li><li>Unlike credit life insurance, which is tied to a specific loan, regular life insurance can be used to address multiple financial goals and needs, making it a versatile option.</li><li>Regular life insurance remains in force regardless of changes in your mortgage or loan status. It can be maintained even if you refinance, pay off your mortgage, or move.</li><li>Some life insurance policies, such as whole life or universal life, offer a cash value component that can grow over time, potentially providing additional financial benefits.</li><li>With regular life insurance, you have the flexibility to choose any beneficiary, not just the lender, ensuring your loved ones are financially protected.</li></ul> <p>Credit life insurance can provide a valuable safety net for homebuyers by addressing their mortgage debt in the event of their passing. However, it's essential to consider the broader financial needs of your family and explore regular life insurance options, which offer more extensive coverage and flexibility. Ultimately, the choice between credit life insurance and regular life insurance should align with your specific financial goals and priorities.</p> Natasha @ SOLDbyNat.comhttp://www.blogger.com/profile/06771202476367259825noreply@blogger.com0tag:blogger.com,1999:blog-9093358619527064022.post-31452393104868294612024-02-13T04:59:00.001-08:002024-02-13T04:59:18.265-08:00Discover how to make a difference in your neighborhood <img style="max-width: 100%; height: auto; width: 100%;" processed="true" height="auto" width="100%" src="http://betterhomeowners.com/image.ashx/46611e07-d11d-4847-8318-7bc7ef9151a0.jpg"><br> <br> <p>Whether you're a seasoned homeowner or just starting this thrilling chapter, every time you turn your key, you're not just entering a house but also embedding yourself in a neighborhood. The heartbeat of a vibrant community doesn't solely rest upon pristine lawns or architectural beauty, but predominantly on its residents � wonderful folks like you! Consider these suggestions to enjoy your new neighborhood and actively contributing to making it a wonderful place to live.</p> <p><strong>Foster Connection</strong> - Begin your journey by fostering connections. Introduce yourself to your neighbors, participate in or organize social events, and involve yourself in local gatherings, HOA, Next Door, or forums. Establishing a network of friendly faces creates a sense of belonging and shared responsibility towards the well-being of the neighborhood.</p> <p><strong>Create a Safe Environment</strong> - A safe community is a serene community. Be mindful of adhering to speed limits while driving through your neighborhood, watch out for children playing, and consider organizing or participating in a neighborhood watch program. Ensuring that everyone feels secure enhances the quality of life for all residents.</p> <p><strong>Champion Cleanliness and Green Practices</strong> - Your new neighborhood is an extension of your home. Engage in and advocate for practices like regular clean-up drives, recycling initiatives, and maintaining green spaces. Planting trees or creating communal gardens can be wonderful projects that not only beautify the area but also instigate sustainable living.</p> <p><strong>Support Local Businesses</strong> - Frequent local shops, cafes, and services to boost the neighborhood's economy. Supporting local businesses fosters a self-sustaining community, often making it more attractive to future residents and other local entrepreneurs.</p> <p><strong>Volunteer and Offer Support</strong> - Whether it's helping a neighbor with yard work or volunteering in local schools, your acts of kindness will ripple through the community, establishing a culture of support and assistance that enriches everyone's lives.</p> <p><strong>Organize and Participate in Events</strong> - From block parties to garage sales, events can add vivacity to any neighborhood. They provide a platform for residents to mingle, forge friendships, and create cherished memories, threading a fabric of unity and camaraderie.</p> <p><strong>Respectful Living</strong> - Being mindful and considerate of your neighbors is foundational. Adhere to noise guidelines, maintain your property, and respect shared spaces. A culture of mutual respect enhances peaceful co-existence and cultivates a harmonious environment.</p> <p><strong>Advocate for Improvements</strong> - If you observe areas for improvement, like a need for better street lighting or safer playgrounds, take the initiative. Work with local authorities, attend town meetings, or organize petitions to facilitate beneficial changes.</p> <p>In contributing towards shaping a great neighborhood, you're not only enhancing your living experience but also elevating the quality of life for existing and future residents. Your active involvement, care, and initiatives sow the seeds for a community where everyone enjoys a sense of belonging, security, and joy in their daily lives. After all, the richest neighborhoods are those woven with the threads of unity, understanding, and collective effort. So, embrace your role and be the beacon that lights up your community with positivity and progress!</p> Natasha @ SOLDbyNat.comhttp://www.blogger.com/profile/06771202476367259825noreply@blogger.com0tag:blogger.com,1999:blog-9093358619527064022.post-32442462291821037732024-02-06T04:58:00.000-08:002024-02-06T04:59:01.015-08:00How Home Value Growth Beats Renting<img style="max-width: 100%; height: auto; width: 100%;" processed="true" height="auto" width="100%" src="http://betterhomeowners.com/image.ashx/a617fe30-381e-461e-8c93-9ea178038d65.jpg"><br> <br> <p>Over the last 60 years, the average sales price of homes has appreciated at a rate of 5.56% annually, according to the <a href="https://fred.stlouisfed.org/series/ASPUS">Federal Reserve Economic Data</a>. During the same period, rent has increased at a rate of 3.88% annually which presents a compelling argument in favor of homeownership.</p> <p>When we analyze these figures, it becomes evident that homes have not only appreciated in value at a faster rate than the increase in rental costs, but they have also provided homeowners with a substantial asset that builds equity over time. This discrepancy in growth rates means that, in the long run, homeowners are likely to experience a greater return on their investment compared to renters.</p> <p>Renters, while they may have the flexibility of moving without the ties of property ownership and might have lower upfront costs, do not gain any equity from their monthly payments. Their money goes straight to their landlord, and they are subject to the annual increases in rent. Over time, as rent continues to rise, renters might find themselves allocating a larger portion of their income to housing expenses compared to homeowners with fixed-rate mortgages, whose monthly payments remain constant.</p> <p>Homeowners, on the other hand, can lock in their housing costs, particularly if they have a fixed-rate mortgage. Even as the value of their property increases, their monthly mortgage principal and interest payments remain steady. Furthermore, as they pay down their mortgage, they build equity in their home, which becomes a valuable asset. This asset can be leveraged for other financial opportunities, such as funding education, investing, or purchasing additional property.</p> <p>In addition, homeowners can capitalize on the tax benefits associated with mortgage interest and property tax deductions, and potential capital gains exclusions, which can contribute to the overall financial advantage of homeownership.</p> <p>In conclusion, while renting may offer flexibility and potentially lower upfront costs, homeownership presents a compelling long-term financial opportunity. The significant difference in the annual growth rates of home prices and rent over the past 60 years underscores the potential for wealth accumulation and financial stability that comes with investing in real estate and the equity building that comes with homeownership.</p> <p>Download our <a class="Guide.2t8UpHE4I0a3evWeuNc5aw" href="https://BetterHomeowners.com/NatashaBazile/guide/2t8UpHE4I0a3evWeuNc5aw?C={Contact.Id}"> Buyers Guide</a> and consider getting together with your agent to get the facts of today's market.</p> Natasha @ SOLDbyNat.comhttp://www.blogger.com/profile/06771202476367259825noreply@blogger.com0tag:blogger.com,1999:blog-9093358619527064022.post-3777986366397880032024-01-30T04:59:00.001-08:002024-01-30T04:59:07.393-08:00Bridging Wealth Gaps: Homeownership's Stand Against Inflation<img style="max-width: 100%; height: auto; width: 100%;" processed="true" height="auto" width="100%" src="http://betterhomeowners.com/image.ashx/d32fbd4a-2bb4-470a-867b-69337345554b.jpg"><br> <br> <p>When exploring the benefits of homeownership, it's more than just having a place to call your own. Among its many advantages, homeownership stands as a formidable safeguard against inflation and a strong vehicle for long-term wealth accumulation. This article will delve into the dynamics of appreciation and amortization, explaining why owning a home can be one of the most impactful financial decisions you can make.</p> <p>Inflation, the overall upward price movement of goods and services in an economy, erodes the purchasing power of money. In simpler terms, as inflation rises, each dollar you have buys a smaller percentage of a good or service.<span> </span>The same inflation that is driving rising mortgage rates is putting upward pressure on home prices.</p> <p>Over the past sixty years, homes have appreciated in value at an annual appreciation rate of 5.56% according to the Federal Reserve Economic Data.<span> </span>As a homeowner, you want to benefit from the appreciation.<span> </span>Inflation for the same period averaged 3.7% (Bureau of Labor Statistics) making homes an effective hedge against inflation.</p> <p>Real estate, unlike many other assets, is a tangible, real asset. History has shown that over the long term, the value of real assets tends to rise at a rate that at least matches, if not outpaces, inflation. So, as the price of goods and services increases, so does the value of real estate, making homeownership a strategic move against inflationary pressures.</p> <p>With a fixed-rate mortgage, your monthly principal and interest payment remains constant. As a result, while other costs may rise due to inflation, your primary housing cost (if you exclude taxes and maintenance) remains stable, shielding you from the full impact of inflation.</p> <p>Home appreciation refers to the increase in the home's value over time. Given the finite nature of land and the ever-growing demand for housing, especially in thriving areas, real estate often appreciates. This appreciation can result in substantial equity gains for homeowners, creating a form of 'forced savings' and making it a powerful tool for wealth accumulation.</p> <p>Amortization has been considered the silent wealth builder. <span> </span>Each time you make a mortgage payment, a portion of that payment goes toward the loan's interest, and the rest pays down the principal, thus retiring your debt incrementally. This process means you're gradually building equity in the home with each payment. Over time, a larger portion of your payment goes towards the principal, accelerating your equity buildup.</p> <p>Combined, appreciation and amortization can lead to significant wealth growth for homeowners. As the home's value rises and the mortgage balance decreases, homeowners often find themselves sitting on a substantial asset, which can be leveraged in various ways, from securing loans to planning retirements.</p> <p>While the emotional and social benefits of homeownership are often celebrated, the financial benefits are equally compelling. In a world of economic uncertainties and inflationary pressures, owning a home emerges not just as a source of stability but also as a strategy for long-term financial prosperity. By understanding and leveraging the twin forces of appreciation and amortization, homeowners can pave a path to meaningful wealth accumulation even during periods of relatively high mortgage rates.</p> Natasha @ SOLDbyNat.comhttp://www.blogger.com/profile/06771202476367259825noreply@blogger.com0tag:blogger.com,1999:blog-9093358619527064022.post-87745045383683955892024-01-23T04:58:00.000-08:002024-01-23T04:59:01.200-08:00Access "Trapped Equity" without Refinancing <img style="max-width: 100%; height: auto; width: 100%;" processed="true" height="auto" width="100%" src="http://betterhomeowners.com/image.ashx/94d63cd1-b7c7-4da6-96d5-4188bd57c1e3.jpg"><br> <br> <p>American homeowners have a record amount of equity in their home.<span> </span> Many of these homeowners would like to cash out part of that equity but don't want to trade an historically low interest rate for one that is as high as it's been in 20 years.</p> <p>Instead of refinancing their home, an option is to get a fixed-rate second-lien.<span> </span>This is different than a HELOC, home equity line of credit, which gives you continual access to your equity at a variable rate.<span> </span>A HELOC has a draw period where you only must pay the interest.</p> <p>A second mortgage is a loan against the equity where the homeowner will receive a lump sum and will make payments to repay the loan and interest over a specified period.<span> </span>Generally speaking, lenders want the combination of the existing first-lien and the new second-lien not to exceed 75-80% of the home's current value.</p> <p>To calculate how much would be available in a second-lien, subtract the existing unpaid balance on the first-lien from 75-80% of the home's current value.<span> </span>The remaining amount would be available in the form of a second-lien mortgage.</p> <p>The borrower, which is the homeowner, would have to qualify for the new second mortgage with sufficient income, acceptable debt-to-income ratios, good credit, and other underwriting requirements.</p> <p>The advantage of this option is that the homeowner retains the lower interest rate first mortgage which may represent a larger percentage of the value of the property.<span> </span>The second mortgage will have a higher interest rate but will only be on a smaller percentage of the value of the property.<span> </span>The blended rate of the two mortgages will be less than the cost of refinancing the home at current interest rates.</p> <div style="padding: 0in 0in 1pt; border-top: none; border-right: none; border-bottom: 1pt solid; border-left: none;"> <p style="padding: 0in; border: none;">Your lender can run an analysis to determine the blended rate on your first and second mortgages so you can see the benefit of keeping your low rate first mortgage in place and accessing your equity through a fixed-rate second mortgage.<span> </span>Sources for home equity loans could be traditional banks, community banks, credit unions, mortgage brokers, and mortgage companies.</p> <p style="padding: 0in; border: none;">A fixed-rate second mortgage is a solution for homeowners who would like to cash out part of their equity but feel trapped because they don't want to trade an historically low interest rate for a much higher one.</p> </div> Natasha @ SOLDbyNat.comhttp://www.blogger.com/profile/06771202476367259825noreply@blogger.com0tag:blogger.com,1999:blog-9093358619527064022.post-62808209389069482632024-01-16T09:59:00.000-08:002024-01-16T10:01:14.096-08:00Navigating Closing Costs During Your Home Sale <img style="max-width: 100%; height: auto; width: 100%;" processed="true" height="auto" width="100%" src="http://betterhomeowners.com/image.ashx/b770a529-2669-43cc-bcbd-f5ec98db2af1.jpg"><br> <br> <p>Buying or selling a house is an exciting and sometimes confusing experience that includes expenses called "closing costs" that can often catch us by surprise. Closing costs are simply the fees and expenses incurred by buyers and sellers during a real estate transaction's closing or settlement process.<span> </span></p> <p>Typical closing costs can vary depending on what is customary in an area, the mortgage type, property value, and other factors.<span> </span>The largest expenses can be the real estate commission and the title policy.<span> </span>Total closing costs for a buyer can characteristically range from 2% - 5% <span> </span>of the sales price and 4% - 7% for a seller.</p> <p>The most common buyer's closing costs include loan origination fee, title insurance, attorney fees, appraisal, homeowner's insurance, underwriting, miscellaneous fees associated with a new mortgage, and prepaid interest to the end of the month.</p> <p>Interest is paid in arrears on mortgages after the borrower has used the money.<span> </span>The payment due on the first of the month pays the interest for the previous month and is calculated for a full month.<span> </span>The prepaid interest covers the time from the closing date to the end of that month.<span> </span>The borrower's first payment will usually not be the first of the month following the closing date but the next one.</p> <p>Separate from the closing costs, lenders usually itemize the additional fees collected at closing used to pre-pay portions of the property taxes and insurance to establish the escrow account.<span> </span>Insurance is always purchased annually in advance which would be due at closing.</p> <p>The seller will owe the taxes from January 1<sup>st</sup> to the closing date, and it will generally show as a credit to the buyer if they haven't been paid to the taxing authority for the year yet.<span> </span>Lenders generally like to have two months of funds for the annual insurance and taxes so they can be paid or renewed before it is due.</p> <p>Some expenses are paid outside of closing like the inspection fees that would be due to the provider at the time they are made.</p> <p>While both buyers and sellers are responsible for paying certain closing costs, it is possible for a buyer to negotiate for a seller to pay part or all their closing costs.<span> </span>VA loans restrict the buyer from paying certain fees and they become the responsibility of the seller.<span> </span>Such fees include attorney fees, agent fees, escrow fees to establish the account, rate lock fees, appraisal fees or inspections ordered by the lender.</p> <p>The actual expenses will be determined by the lender and special provisions in the sales contract. Your agent can supply you with an estimate of closing costs you typically will be responsible for at the beginning of the transaction and again at the time the sales contract is written.<span> </span>Buyers will receive an estimate from their lender at the time of application. </p> Natasha @ SOLDbyNat.comhttp://www.blogger.com/profile/06771202476367259825noreply@blogger.com0tag:blogger.com,1999:blog-9093358619527064022.post-13523660721951168222024-01-09T04:59:00.001-08:002024-01-09T04:59:43.775-08:00Tap into your home equity five ways <img style="max-width: 100%; height: auto; width: 100%;" processed="true" height="auto" width="100%" src="http://betterhomeowners.com/image.ashx/21510a85-30bc-404e-87b7-b9c8601d9203.jpg"><br> <br> <p>Your home is not just a place to live; it's a valuable asset that can serve as a financial resource when you need it most. One of the significant advantages of homeownership is the opportunity to build equity over time, which can be accessed in various ways to fund life's important milestones or unexpected expenses. </p> <p>Whether you're looking to undertake a home improvement project, consolidate debt, cover education expenses, or simply ensure financial flexibility for the future, your home equity can be a powerful tool to achieve your goals. By understanding the options available and the implications of each, you can leverage your home's value to enhance your financial well-being and seize opportunities that come your way.</p> <p>Home Equity Loans are a fixed amount loan using the equity in the home as collateral. The borrower receives a lump sum and pays it back in regular monthly installments over a fixed term, typically at a fixed interest rate.</p> <p>A Home Equity Line of Credit is similar to a credit card; a HELOC provides a revolving line of credit using the home's equity as collateral. Homeowners can borrow as much or as little as they need up to a specified limit, and interest is only paid on the amount borrowed.</p> <p><span> </span>A Cash-Out Refinance involves refinancing the current mortgage for more than the homeowner owes and pocketing the difference. Essentially, homeowners replace their existing mortgage with a new, larger loan and get the difference in cash to be used any way they want.</p> <p>A Reverse Mortgage is available to seniors, typically 62 and older and allows homeowners to convert part of their home equity into cash without having to sell their home or pay additional monthly bills. Instead of making monthly payments to a lender, the lender makes payments to the borrower.</p> <p>Homeowners can choose to sell their current property and purchase a less expensive one, using the profit from the sale (equity) for other purposes. This is a more drastic approach as it involves moving, but it can release a significant amount of equity.</p> <p>Each of these options has its own advantages and considerations, so homeowners should carefully evaluate which method best fits their needs and consult with financial professionals before making decisions.</p> Natasha @ SOLDbyNat.comhttp://www.blogger.com/profile/06771202476367259825noreply@blogger.com0tag:blogger.com,1999:blog-9093358619527064022.post-42612794368018566622024-01-02T04:58:00.001-08:002024-01-02T04:58:46.027-08:00Why you should check the claim history on the home before you make an offer <img style="max-width: 100%; height: auto; width: 100%;" processed="true" height="auto" width="100%" src="https://betterhomeowners.com/image.ashx/af2f772b-8cbf-4de3-824e-296490b347d4.jpg"><br> <br> <p>Buying a home is a big decision, and there are a lot of things to consider. One important factor to consider is the home's claim history. A home's claim history can tell you a lot about the property, including its potential risks and liabilities.</p> <p>To identify potential risks because a home with a history of claims may be more likely to experience future claims. This could be due to the location of the home, the age of the home, or the materials used in construction.</p> <p>The cost of insurance can be higher for homes with a history of claims. Insurance companies factor in the risk of future claims when setting premiums.</p> <p>You may be able to negotiate a lower price if you discover the home has a history of claims. This is because the seller may be motivated to sell the home quickly to avoid future claims.</p> <p>The Comprehensive Loss Underwriting Exchange (CLUE) is a database that tracks insurance claims filed on homes.<span> </span>A CLUE report can be purchased for a fee, and it will show you the number and type of claims that have been filed on the property within the last seven years. <span> </span></p> <p>Sellers are entitled to one free copy of their LexisNexis CLUE report each year; there is a nominal fee for additional, original reports.<span> </span>Contact LexisNexis by calling 888-497-0011 or by emailing <a href="mailto:consumer.documents@lexisnexisrisk.com"> consumer.documents@lexisnexisrisk.com</a>.<span> </span>As a potential buyer, your agent can request a copy of the report from the listing agent who may have to ask the seller to order it themselves, if they haven't done so recently.</p> <p>Another option is to instruct your home inspector to look for signs of damage that may have been caused by previous claims. </p> <p>Checking the claim history of a home is an important part of due diligence in the home buying process. <span> </span>It is important to remember that the claim history is not a perfect predictor of the future. Just because a home has had claims in the past does not mean that it will have claims in the future. However, the claim history can give you valuable information that can help you make an informed decision about whether to buy the home.</p> Natasha @ SOLDbyNat.comhttp://www.blogger.com/profile/06771202476367259825noreply@blogger.com0tag:blogger.com,1999:blog-9093358619527064022.post-39712055944787675862023-12-26T04:59:00.001-08:002023-12-26T04:59:29.154-08:00New Construction Homes with Your Own Agent<img style="max-width: 100%; height: auto; width: 100%;" processed="true" height="auto" width="100%" src="https://betterhomeowners.com/image.ashx/db243557-840c-4f4b-9682-c94918098c13.jpg"><br> <br> <p><span>Homebuyers in the market who are frustrated by the low inventory are finding what they want in new construction.<span> </span>Among the obvious advantages are that it is fresh and new, has never been lived in, and can be personalized to an individual's taste and needs.</span></p> <p style="line-height: 15pt;"><span style="color: rgb(65, 64, 66);">New construction homes can be more expensive upfront, but they can save you money in the long run. These homes are built to the latest building codes, which means they are more energy-efficient and require less maintenance. They also come with warranties that can help protect you from unexpected repairs.</span></p> <p style="line-height: 15pt;"><span style="color: rgb(65, 64, 66);">New construction homes can be a great option for first-time homebuyers. They offer a blank slate that you can customize to your liking, and they don't have the same wear and tear as older homes.</span></p> <p style="line-height: 15pt;"><span style="color: rgb(65, 64, 66);">Working with a REALTOR� can help you navigate the process of buying a new construction home. They can help you find the right builder, negotiate a good price, and make sure that the home is built to your specifications. </span></p> <p style="line-height: 15pt;"><span style="color: rgb(65, 64, 66);">One of the most critical steps in designing your dream home is enlisting the expertise of a qualified real estate professional. A REALTOR� brings essential knowledge of the local market, construction processes, checklists, and negotiation skills. They can help you explore financing options, connect you with reputable builders and guide you through the complex steps of purchasing new construction.</span></p> <p><span>Navigate the path to your dream home with these steps guided by your REALTOR�:</span></p> <ol> <li class="public-draftstyledefault-orderedlistitem" style="line-height: 15pt;"><strong><span style="color: rgb(65, 64, 66);">Select a Real Estate Professional: </span></strong><span style="color: rgb(65, 64, 66);">Find a trusted agent to champion your interests, negotiate with builders and ensure a seamless transaction. </span></li><li class="public-draftstyledefault-orderedlistitem" style="line-height: 15pt;"><strong><span style="color: rgb(65, 64, 66);">Research Builders and Neighborhoods: </span></strong><span style="color: rgb(65, 64, 66);">Discover builders, track records and neighborhoods using the expertise of your real estate professional. </span></li><li class="public-draftstyledefault-orderedlistitem" style="line-height: 15pt;"><strong><span style="color: rgb(65, 64, 66);">Get Pre-approved:</span></strong><span style="color: rgb(65, 64, 66);"> Determine your budget and financing options by securing pre-approval from a trusted lender. </span></li><li class="public-draftstyledefault-orderedlistitem" style="line-height: 15pt;"><strong><span style="color: rgb(65, 64, 66);">Navigating Legal and Documentation Processes: </span></strong><span style="color: rgb(65, 64, 66);">Your real estate professional understands local regulations, permits and zoning requirements. They will guide you through the paperwork and review things along the way, allowing you to focus on the creative aspects of your dream home.</span></li><li class="public-draftstyledefault-orderedlistitem" style="line-height: 15pt;"><strong><span style="color: rgb(65, 64, 66);">Construction and Project Management: </span></strong><span style="color: rgb(65, 64, 66);">Your real estate professional will accompany you through the construction process. Your agent will work with the builder's agent to oversee the timeline and progress, to address any concerns that may arise. </span></li></ol> <p class="public-draftstyledefault-orderedlistitem" style="line-height: 15pt;"><span style="color: rgb(65, 64, 66);">An important step is having your agent introduce you to the builder's home for the first time and register you as their client.<span> </span>Builders have sales teams that will assist you, but they don't represent you; they are employees of the builders. </span></p> <p><span>Another consideration is to have a home inspection, even though it may not seem necessary.<span> </span>It is comforting to have your inspector verifying that the building is up to code and being done the way it should be.<span> </span>Some buyers elect to have inspections done at the major steps of the building process, but this does add some additional cost.</span></p> <p><span style="color: rgb(65, 64, 66);">The importance of having a REALTOR� by your side is part of your investment in a home.<span> </span>Your agent will be with you every step of the way and advocate for you in the process.<span> </span>Your path to home-sweet-home starts with selecting your agent.</span></p> Natasha @ SOLDbyNat.comhttp://www.blogger.com/profile/06771202476367259825noreply@blogger.com0tag:blogger.com,1999:blog-9093358619527064022.post-38428307154226211702023-12-19T04:59:00.001-08:002023-12-19T04:59:16.759-08:00How Rapid Rescoring Can Make a Difference <img style="max-width: 100%; height: auto; width: 100%;" processed="true" height="auto" width="100%" src="https://betterhomeowners.com/image.ashx/2dd8ec16-ebb8-4e63-8edb-7b50696bb6b4.jpg"><br> <br> <p>Imagine you're on the verge of securing a mortgage, and a slightly higher credit score could mean a lower interest rate. The good news? There's a quicker way to make that possibility a reality. Mortgage loans are often more time-sensitive than other loans. If you find yourself in a situation where a slightly improved credit score could open doors to better rates, the solution might lie in rapid rescoring.</p> <p>When it comes to mortgage loans, time is of the essence. Your offer has been accepted, and you have a limited window to qualify for a new loan. But what if there was a way to boost your credit score swiftly and improve your chances of securing a lower interest rate?</p> <p>Enter rapid rescoring ... a powerful tool that mortgage lenders use to diagnose potential actions that could lead to a credit score increase. It's important to note that these diagnostic reports are estimates, and their accuracy can vary since different lenders employ distinct scoring formulas. However, this innovative approach can provide a viable solution for improving your credit score in a time-sensitive scenario.</p> <p>Let's say you realize you have sufficient funds in your savings account to significantly pay down your credit card debt. Acting on your mortgage officer's advice, you make the payment, anticipating a positive impact on your credit score. This strategic step is a prime example of how you can proactively influence your credit standing.</p> <p>Following your payment, your lender can initiate a rapid rescore by obtaining an updated copy of your credit report from one or more of the three nationwide consumer reporting agencies ... Equifax, TransUnion, and Experian. With this fresh data in hand, your lender can reevaluate your credit scores based on the latest information, including your substantial debt payment aimed at elevating your scores.</p> <p>Rapid rescoring is designed to be swift, typically taking three to five business days to complete. The exact duration may vary depending on your individual circumstances, but the benefits can be significant.</p> <p>Before requesting your lender to initiate a rapid rescore, it's prudent to evaluate your entire financial situation. Ensure there are no unforeseen negative developments on the horizon, such as new delinquent payments or other potential issues that could affect your credit.</p> <p>If you find yourself in a credit score range where a few extra points could unlock better terms for your mortgage, rapid rescoring could be an excellent option to explore.</p> <p>In the intricate world of mortgage loans, rapid rescoring emerges as a valuable strategy for potential homebuyers aiming to secure favorable terms. By understanding the potential of rapid rescoring and acting strategically, you can potentially save time and even money in the long run. When considering this option, remember to assess your entire financial landscape and consult with a trusted mortgage professional to make an informed decision that aligns with your goals.</p> Natasha @ SOLDbyNat.comhttp://www.blogger.com/profile/06771202476367259825noreply@blogger.com0tag:blogger.com,1999:blog-9093358619527064022.post-43125429683433566082023-12-12T04:59:00.001-08:002023-12-12T04:59:21.692-08:00Why It's a Smart Move to Buy a Home in the Current Market<img style="max-width: 100%; height: auto; width: 100%;" processed="true" height="auto" width="100%" src="https://betterhomeowners.com/image.ashx/0cc10f80-be8e-4d42-885a-fbc767130383.jpg"><br> <br> <p>If you're in a financially stable position, now might be the perfect time to embark on your homeownership journey. Buying a home today offers several advantages, including the opportunity to build equity and stabilize your housing costs in the face of rising expenses. Explore the reasons why purchasing a home now can be a wise decision in the current market.</p> <p>By purchasing a home today, you can start building equity, which is an investment in your future. Additionally, opting for a fixed-rate mortgage allows you to stabilize your monthly housing costs for the long term, even as other expenses continue to rise. This stability provides peace of mind in an ever-changing financial landscape.</p> <p>While housing costs experienced significant increases in 2021 due to a combination of factors, such as inflation, high demand, and low supply, the market has since moderated. If you decide to buy now, you can expect relatively stable house prices and potentially face less competition from other buyers due to the current mortgage rate environment.</p> <p>Despite prevailing interest rates, which fell to 7% last week, recent research from Freddie Mac suggests that homebuyers can save $600 to $1,200 annually by applying for mortgages from multiple lenders. It's important to remember that you can always refinance your loan in the future if rates decrease further.</p> <p>Renters, on the other hand, have experienced rising rental costs in recent years. The 2023 Multifamily Outlook indicates that rent prices increased between 6% and 8% in 2022, with a projected growth of 3.9% in 2023. By choosing to buy a home, you can escape the uncertainty and potential annual rent increases, gaining stability and control over your housing expenses.</p> <p>Homeowners with fixed-rate loans enjoy the benefit of consistent monthly housing costs over the life of their loan. While other expenses may fluctuate, you can take comfort in the fact that your mortgage payments will remain relatively unchanged in the long run. This stability gives you confidence in managing your finances effectively, regardless of external economic factors.</p> <p>Despite the potential for rising rents and home prices, buying a home today offers distinct advantages for those who are financially prepared. With the opportunity to build equity, stabilize your housing costs, and enjoy long-term cost predictability, homeownership can be a smart investment in your future. By taking the leap into homeownership now, you can secure a place to call your own and navigate the evolving financial landscape with confidence.</p> <p>Download our <a class="Guide.2t8UpHE4I0a3evWeuNc5aw" href="https://BetterHomeowners.com/NatashaBazile/guide/2t8UpHE4I0a3evWeuNc5aw?C={Contact.Id}"> Buyers Guide</a> and let's connect to provide you with specific information relevant to your individual situation.</p> Natasha @ SOLDbyNat.comhttp://www.blogger.com/profile/06771202476367259825noreply@blogger.com0tag:blogger.com,1999:blog-9093358619527064022.post-21149969191058905802023-12-05T04:58:00.001-08:002023-12-05T04:58:21.962-08:00Moving Scams: How to Spot Them<img style="max-width: 100%; height: auto; width: 100%;" processed="true" height="auto" width="100%" src="https://betterhomeowners.com/image.ashx/0ab660ca-01a8-4093-81e9-fcae621e8754.jpg"><br> <br> <p>Moving can be stressful enough without having to worry about being scammed by a moving company. Unfortunately, there are unscrupulous movers out there who prey on people who are in the midst of moving.</p> <p>To protect yourself from being scammed, it's important to be aware of the red flags. Here are a few things to watch out for:</p> <p>The mover or broker <span style="text-decoration: underline;">doesn't</span> perform an on-site inspection of your household items and gives an estimate over the telephone or online. A legitimate moving company will always come to your home to inspect your belongings and give you an accurate estimate.</p> <p>The mover or broker <span style="text-decoration: underline;">doesn't</span> provide a written estimate or says they will determine the cost after loading. A written estimate is essential to protect yourself from hidden charges.</p> <p>The moving company demands cash or a large deposit before the move. Legitimate moving companies will accept credit cards or checks.</p> <p>The mover asks you to sign blank documents. Never sign blank documents. This could give the mover the opportunity to add hidden charges after the move.</p> <p>The mover or broker <span style="text-decoration: underline;">doesn't</span> provide you with a copy of the <a href="https://www.fmcsa.dot.gov/protect-your-move/consumer-rights">Your Rights and Responsibilities When You Move booklet</a> and a copy of FMCSA's Ready to Move brochure. These booklets contain important information about your rights and responsibilities as a mover.</p> <p>The company's website has no local address and no information about their registration or insurance. A legitimate moving company will have a physical address and be registered with the Federal Motor Carrier Safety Administration (FMCSA).</p> <p>The mover claims all goods are covered by their insurance. This is not always true. Make sure you understand the terms of the mover's insurance before you sign any contracts.</p> <p>On moving day, a rental truck arrives rather than a company-owned or marked fleet truck. This is a red flag that the mover may not be legitimate.</p> <p>The mover claims that you have more belongings than estimated. This could be an attempt to charge you more money.</p> <p>If you see any of these red flags, it's best to walk away from the moving company and find a more reputable one. You can check the FMCSA's <a href="https://www.fmcsa.dot.gov/protect-your-move/search-mover">website</a> to see if the company is registered and insured. You can also read reviews of the company online.</p> <p>For more information, go to the <a href="https://www.fmcsa.dot.gov/protect-your-move/moving-fraud"> Federal Motor Carrier Safety Administration website</a>.<span> </span>Download our <a class="Guide.m_KSRMh_JkG587t1l8ll0g" href="https://BetterHomeowners.com/NatashaBazile/guide/m_KSRMh_JkG587t1l8ll0g?C={Contact.Id}"> Moving Guide</a>.</p> Natasha @ SOLDbyNat.comhttp://www.blogger.com/profile/06771202476367259825noreply@blogger.com0tag:blogger.com,1999:blog-9093358619527064022.post-18599191164265350022023-11-28T04:58:00.000-08:002023-11-28T04:59:03.976-08:00Which types of showings work <img style="max-width: 100%; height: auto; width: 100%;" processed="true" height="auto" width="100%" src="https://betterhomeowners.com/image.ashx/cfb69090-cf4c-43aa-a257-b64b390ff557.jpg"><br> <br> <p>A showing is an opportunity for a buyer to determine if a home is right for them. Each of the different types of showing plays a valid and necessary role in marketing the home. Some buyers may start by looking at homes online, which can lead them to drive by the home to see if it still meets their interest before they schedule a showing.</p> <p><strong>Online showing</strong>: This is when a buyer looks at a home's listing online, including photos, videos, and a description. This can be a great way for buyers to get a general overview of a home and see if it is worth scheduling a showing.</p> <p><strong>Drive-by showing</strong>: This is when a buyer drives by a home to see it in person. This can be a good way for buyers to get a feel for the neighborhood and the surrounding area. It can also be helpful for buyers to see the home's size and layout from the outside.</p> <p><strong>In-person showing</strong>: This is when a buyer schedules a time to visit the home with a real estate agent. This is the best way for buyers to get a true sense of the home and see if it is right for them. Buyers can ask the real estate agent questions about the home and the neighborhood. They can also walk through the home and get a feel for the space.</p> <p><strong>Virtual Showing</strong>: Virtual Reality (VR) can be used to stage, remodel, or update a home for sale by creating realistic images of what the home could look like with different furniture, appliances, paint colors, countertops, or flooring.<span> </span>By creating images of the home in different staging scenarios, the agent can show potential buyers the potential of the home and how it could be used.</p> <p>Each one of these types of showings contributes to the marketing of a home.<span> </span>By offering different types of showings, a seller can reach a wider audience of potential buyers and increase the chances of selling their home quickly.</p> Natasha @ SOLDbyNat.comhttp://www.blogger.com/profile/06771202476367259825noreply@blogger.com0tag:blogger.com,1999:blog-9093358619527064022.post-28145477820565275442023-11-21T04:58:00.001-08:002023-11-21T04:58:57.573-08:00How homeowners can avoid mortgage relief scams <img style="max-width: 100%; height: auto; width: 100%;" processed="true" height="auto" width="100%" src="https://betterhomeowners.com/image.ashx/9681808b-aa65-4dd5-bc28-839dbf434623.jpg"><br> <br> <p>Homeowners who are facing financial difficulty are often targeted by mortgage relief scams. These scams can be very convincing, and homeowners may be desperate for help, making them vulnerable to these schemes.</p> <p>Scammers often pose as government officials or mortgage experts, and they may promise homeowners that they can help them avoid foreclosure or modify their mortgage loan. However, these promises are often false, and homeowners who fall victim to these scams may lose their homes and their money.</p> <p>If you are facing financial difficulty and you are considering a mortgage relief program, it is important to do your research and be very careful. Here are some tips to help you avoid becoming a victim of a mortgage relief scam:</p> <ul> <li>Only work with a HUD-approved housing counselor. You can find a housing counselor by calling 1-888-995-HOPE (4673).</li><li>Be wary of anyone who promises to help you avoid foreclosure or modify your mortgage loan for a fee. It is illegal for anyone other than a licensed attorney to charge a homeowner a pre-paid fee to negotiate a mortgage modification on the homeowner's behalf.</li><li>Read all paperwork carefully before signing anything. Do not sign anything that you do not understand.</li><li>Do not be pressured into making a decision quickly. Take your time and do your research before making any decisions about your mortgage.</li></ul> <p>The warning signs for fraudulent mortgage rescue schemes:</p> <ul> <li>You are charged an upfront fee for assistance in avoiding foreclosure or modifying your mortgage loan. </li><li>You are asked to transfer the deed to your home. It is very unlikely you will ever get the deed back, regardless of what you are told.</li><li>The individual or company "helping" you asks you to make future mortgage payments directly to them, instead of paying your mortgage company directly. This is a common tactic used by scammers to take your money and run.</li><li>You are asked not to contact your current mortgage company. This is another common tactic used by scammers to prevent you from getting help from a legitimate source.</li><li>The scammer refuses to provide you with a written plan or contract, or alternatively pressures you to quickly sign documents you do not understand. This is a red flag that the scammer is not interested in helping you, but rather is trying to take advantage of you.</li></ul> <p>Review this <a href="https://www.hud.gov/sites/dfiles/Housing/documents/RevUpdHmownSuc121518fnl.pdf"> HUD guide</a> for homeowners having difficulty making mortgage payments. This guide provides information on your rights and options if you are facing foreclosure.<br> </p> <p>If you think you may have been a victim of a mortgage relief scam, you should contact your state attorney general's office or the Federal Trade Commission (FTC). You can also file a complaint with the FTC online at ftc.gov/complaint.</p> <p>It is important to be aware of the red flags for fraudulent mortgage rescue schemes. If you are contacted by someone who claims to be able to help you avoid foreclosure or modify your mortgage loan, be sure to do your research and ask questions before you hand over any money.</p> Natasha @ SOLDbyNat.comhttp://www.blogger.com/profile/06771202476367259825noreply@blogger.com0tag:blogger.com,1999:blog-9093358619527064022.post-48555727241074701872023-11-07T04:58:00.001-08:002023-11-07T04:58:39.069-08:00Discover the benefits of an FHA Assumption<img style="max-width: 100%; height: auto; width: 100%;" processed="true" height="auto" width="100%" src="https://betterhomeowners.com/image.ashx/cc89d22a-3880-4a08-acf8-ab2654df9d93.jpg"><br> <br> <p>With new mortgage rates approaching 8%, many buyers have decided to wait for rates to come down.<span> </span>While there may be some easing in the fourth quarter of 2023 and 2024, assuming an existing FHA mortgage with a lower rate made in the last three or four years might be a much better alternative.</p> <p>Since December 1, 1986, FHA has had the right to approve the purchaser of an existing FHA loan.<span> </span>Prior to that, anyone, regardless of credit worthiness or other qualifications, could assume an existing FHA loan.<span> </span></p> <p>Existing FHA mortgages are assumable at the current interest rate for owner-occupied buyers.<span> </span>The benefit is that the rate could be much lower than a new current mortgage.<span> </span>The borrower must qualify for the loan under current FHA underwriting guidelines, but it will be easier because the payment will be lower due to a lower assumable mortgage rate.</p> <p>The buyer's closing costs on an assumption are less than a new FHA loan because an appraisal and survey are not required.<span> </span>The transfer fee is $500 instead of the 1% loan origination on a new loan.</p> <p>An existing mortgage is further into the amortization schedule than originating a new loan which means there is more being applied to the principal each month accelerating the payoff.<span> </span>Another benefit is that lower interest rate loans amortize quicker than higher interest rates loans.</p> <p>It will generally take a larger initial cash investment on an assumption to buy the equity than buyers were planning to use as a down payment.<span> </span>Secondary financing can be used for the difference which is referred to as the assumption gap.<span> </span><strong>Purchase Price less Existing Balance on Mortgage = Equity less Planned Down Payment = Assumption Gap.</strong></p> <p>The difficulty is that lending institutions are slow to add second mortgages to their offerings. Another reality is that lenders make much more money on a new loan than an assumption. Alternative sources for the second loan could be the seller, relatives, credit unions, local banks, and hard money lenders.</p> <p>Conventional loans have had a "due on sale" clause in their loan documents since the early 1980s which not only require the borrower to qualify for the assumption but allows them to escalate the interest rate to the current rate.<span> </span>For practical reasons, there is no benefit to assuming a conventional loan; the borrower might as well get a new conventional mortgage.</p> <p>Buyers who assume an FHA mortgage without obtaining lender approval risk triggering the due-on-sale clause.</p> <p>Lenders must grant a release of liability to the original borrower (seller) if the assumptor (buyer) is approved and agrees to execute a statement to assume and pay the mortgage debt.</p> <p>The practical difficulty in finding assumable FHA loans is that there is no searchable field in most MLS databases and anything identifying it as an assumable mortgage is limited to the description or the agent comments.</p> <p>Another issue is that many agents have never done an assumption and, in some cases, are not even aware that FHA mortgages are assumable at the original mortgage rate.<span> </span>An experienced agent can show you the savings on an assumption compared to a new mortgage at current interest rates and knows how to locate assumable loans.</p> <p>If you're interested in learning more about it, find an agent familiar with FHA, VA, & USDA assumptions.<span> </span>Each type of mortgage has slightly different requirements, but each is assumable.</p> Natasha @ SOLDbyNat.comhttp://www.blogger.com/profile/06771202476367259825noreply@blogger.com0tag:blogger.com,1999:blog-9093358619527064022.post-56003612079942762072023-10-31T04:59:00.001-07:002023-10-31T04:59:16.248-07:00Discover how to go from stress to success with your home move <img style="max-width: 100%; height: auto; width: 100%;" processed="true" height="auto" width="100%" src="https://betterhomeowners.com/image.ashx/5b797811-0a23-4e8d-91b4-fbb96d22d78e.jpg"><br> <br> <p>Navigating a real estate transaction, which often involves substantial financial investments and emotional considerations, can understandably induce stress. To streamline this process, adopt these effective strategies that promote a smoother journey.</p> <p>Begin by clearly outlining your primary motivations for either buying or selling a property. By eliminating distractions and maintaining a focused perspective, you can mitigate potential anxieties. For instance, if your primary goal is to secure more space for your family, evaluating properties without this essential feature becomes a straightforward decision.</p> <p>Whenever feasible, allocate ample time to prevent hasty decisions or setting unrealistic deadlines. While external factors like a sudden job relocation or a booming market might necessitate swift responses, it's crucial to differentiate between preparedness for action and arbitrarily shortened time frames. </p> <p>Remember, orchestrating a successful transaction requires coordination with other involved parties such as title and mortgage companies, appraisers, surveyors, inspectors and possibly, attorneys. The ability to expedite your actions doesn't necessarily imply that others can adhere to such accelerated timelines.</p> <p>Anticipate encountering a few unexpected things during your home buying or selling journey. Recognizing the potential for sudden surprises can alleviate some of the pressure when they arise. When challenges do surface, counterbalance these concerns by reminding yourself of the favorable aspects associated with relocating, such as a home more conducive to your current lifestyle, a more convenient location, or other opportunities.</p> <p>The ultimate strategy to alleviate stress when engaging in real estate transactions lies in partnering with a seasoned REALTOR� who possesses the expertise to navigate you through each step of the process, thereby facilitating the realization of your real estate aspirations.</p> <p>For more information, download our <a class="Guide.2t8UpHE4I0a3evWeuNc5aw" href="https://BetterHomeowners.com/NatashaBazile/guide/2t8UpHE4I0a3evWeuNc5aw?C={Contact.Id}"> Buyers Guide</a>.</p> Natasha @ SOLDbyNat.comhttp://www.blogger.com/profile/06771202476367259825noreply@blogger.com0tag:blogger.com,1999:blog-9093358619527064022.post-56049612209072303772023-10-24T04:59:00.001-07:002023-10-24T04:59:11.794-07:00The Net Worth Advantage: Homeowners vs. Renters<img style="max-width: 100%; height: auto; width: 100%;" processed="true" height="auto" width="100%" src="https://betterhomeowners.com/image.ashx/c3e4c10a-5d54-4717-97a8-a6fe32b1dcb7.jpg"><br> <br> <p>The decision to rent or own a home is not just about having a place to live; it also has significant implications for your financial future. One key aspect that often comes into play is net worth ... the value of your assets minus your liabilities. Numerous studies and statistics highlight a compelling trend: homeowners tend to have higher net worth compared to renters. </p> <p>The numbers according to the <a href="https://www.federalreserve.gov/econres/scfindex.htm"> Federal Reserve's Survey of Consumer Finances</a> confirms the belief that homeownership has long been associated with wealth accumulation.<span> </span>The median net worth of homeowners is 40 times higher than that of renters. This discrepancy can be attributed to several factors that favor homeowners, including equity buildup, property appreciation, and forced savings through mortgage payments.</p> <p>Homeownership allows individuals to build equity over time, which is the difference between the home's market value and the remaining mortgage balance. Every mortgage payment with amortizing loans contributes to this equity, leading to a gradual increase in homeowners' net worth. On the contrary, renters do not benefit from this form of forced savings, as their monthly rent does not result in any ownership stake.</p> <p>Historically, real estate has proven to be a valuable investment, with properties appreciating in value over the long term. Homeowners enjoy the potential for capital appreciation, which can significantly boost their net worth. In contrast, renters do not participate in the appreciation of the property they live in and miss out on this wealth-building opportunity.</p> <p>Homeownership also comes with tax benefits, such as deductions for mortgage interest and property taxes but with such a high portion of taxpayers electing to take the standard deduction, the more important tax benefit is the capital gains exclusion.<span> </span></p> <p>Homeowners can exclude up to $250,000 of the gain on their principal residence if single and up</p> <p>to $500,000 if married filing jointly. During the five-year period ending on the date of the sale, the</p> <p>taxpayer must have owned and lived in the home for at least two of the past five years.</p> <p>These advantages contribute to lowering the overall cost of homeownership and increasing the financial cushion for homeowners.<br> </p> <p>Owning a home can have positive implications for retirement readiness. As homeowners pay down their mortgages, they are essentially building a valuable asset that can be leveraged in retirement. Borrowing against one's home is not a taxable event. The proceeds could be used for any reason. Furthermore, owning a home outright eliminates the need for monthly rent payments during retirement, providing greater financial security.<br> </p> <p>Additional sources to support the claim that homeownership has net worth advantages include:</p> <ul> <li>The National Association of Realtors regularly releases reports that analyze the financial benefits of homeownership, including equity accumulation and property appreciation.</li><li>The Case-Shiller Home Price Index tracks changes in the value of residential real estate, offering insights into property appreciation trends over time.</li><li>U.S. Census Bureau data offers a broader perspective on homeownership rates, wealth distribution, and their impact on net worth.</li></ul> <p>The numbers speak for themselves ... homeowners tend to enjoy a higher net worth compared to renters. The combination of equity building, property appreciation, tax advantages, and retirement preparedness contribute to this financial advantage. While individual circumstances vary, it's clear that homeownership offers a pathway to building wealth and securing a more robust financial future.</p> <p>For more information, download our <a class="Guide.Vqn2ztsUJE-EcypkTjk25Q" href="https://BetterHomeowners.com/NatashaBazile/guide/Vqn2ztsUJE-EcypkTjk25Q?C={Contact.Id}"> Homeowners Tax Guide.</a></p> Natasha @ SOLDbyNat.comhttp://www.blogger.com/profile/06771202476367259825noreply@blogger.com0tag:blogger.com,1999:blog-9093358619527064022.post-30557465081353902942023-10-17T04:59:00.001-07:002023-10-17T04:59:17.422-07:00The Danger of Do-It-Yourself Divorce<img style="max-width: 100%; height: auto; width: 100%;" processed="true" height="auto" width="100%" src="https://betterhomeowners.com/image.ashx/8b7bf169-a261-4d23-985b-7a20d27ba3c2.jpg"><br> <br> <p>Ken & Barbie have been married 20 years and have owned their current home for over 10 years. Without the benefit of legal or tax advice, they decide to divorce with Ken taking his retirement and Barbie taking the equity in the home which are equal in value.</p> <p>It appears to be equitable until a year later when Barbie decides to sell the home.<span> </span>It sells for the same market value at the time of the divorce but now Barbie pays all the sales costs.<span> </span>The unpaid balance on the home was much larger than normal because it had been refinanced for $750,000 two years earlier.</p> <p>When Ken gave Barbie his equity in the house, he also gave her his tax liability in the home.<span> </span>Barbie has a substantial capital gain because the home was purchased for a much lower price ten years earlier.<span> </span>Capital gain is calculated by taking the sales price less sales costs, plus capital improvements made, less the purchase price.</p> <p>Since she is single, she has a $250,000 exclusion and the balance of the gain of $456,750 will be taxable as long-term capital gains.<span> </span>Let's assume her rate is 15%, Barbie would owe $68,513 in capital gains taxes.</p> <p>When calculating Barbie's net proceeds from this sale and accounting for the sales costs, mortgage balance, and federal taxes due, she only realizes $88,487 in this example while Ken walked away from the divorce with the full value of his retirement account of $225,000.</p> <p>It doesn't appear to have been an equitable settlement.<span> </span>Contributing to this inequity was an apparent misunderstanding of how taxes are calculated and that the expenses incurred with the sale of the home as a single person would be borne solely by herself.</p> <p>No gain or loss is recognizable on the transfer of the residence if related to the end of a marriage.<span> </span>It is treated as a gift with no gift tax due if the transfer is within two years prior to the divorce or one year following.<span> </span>There is no change in basis; it is carried over to the gifted party.</p> <p>A marriage is a legal arrangement and divorcing deserves the benefit of expert advice.<span> </span>An attorney who is familiar with potential tax consequences could have advised his/her client about the potential tax consequences and possibly suggested a more equitable division of assets. </p> <p>This example is used to show you how it can appear to be an easy solution to dividing the assets.<span> </span>In an emotional state, one person could agree to something that could be costly later. </p> <p> </p> <table border="1" cellspacing="0" cellpadding="0" style="border: none;"> <tbody> <tr> <td width="414" valign="top" style="background: black; width: 310.25pt; padding: 0in 5.4pt; border: 1pt solid; text-align: left;"> <p style="line-height: normal;"><span style="color: white;">Division of Assets</span></p> </td> <td width="210" valign="top" style="background: black; width: 157.25pt; padding: 0in 5.4pt; border-top: 1pt solid; border-right: 1pt solid; border-bottom: 1pt solid; border-left: none; text-align: left;"> <p align="right" style="text-align: right; line-height: normal;"> </p> </td> </tr> <tr> <td width="414" valign="top" style="width: 310.25pt; padding: 0in 5.4pt; border-top: none; border-right: 1pt solid; border-bottom: 1pt solid; border-left: 1pt solid; text-align: left;"> <p style="line-height: normal;">Home's Market Value at time of Divorce</p> </td> <td width="210" valign="top" style="width: 157.25pt; padding: 0in 5.4pt; border-top: none; border-right: 1pt solid; border-bottom: 1pt solid; border-left: none; text-align: left;"> <p align="right" style="text-align: right; line-height: normal;">$975,000</p> </td> </tr> <tr> <td width="414" valign="top" style="width: 310.25pt; padding: 0in 5.4pt; border-top: none; border-right: 1pt solid; border-bottom: 1pt solid; border-left: 1pt solid; text-align: left;"> <p style="line-height: normal;">Unpaid Balance at time of Divorce</p> </td> <td width="210" valign="top" style="width: 157.25pt; padding: 0in 5.4pt; border-top: none; border-right: 1pt solid; border-bottom: 1pt solid; border-left: none; text-align: left;"> <p align="right" style="text-align: right; line-height: normal;">$750,000</p> </td> </tr> <tr> <td width="414" valign="top" style="width: 310.25pt; padding: 0in 5.4pt; border-top: none; border-right: 1pt solid; border-bottom: 1pt solid; border-left: 1pt solid; text-align: left;"> <p style="line-height: normal;">Equity in Home at time of Divorce</p> </td> <td width="210" valign="top" style="width: 157.25pt; padding: 0in 5.4pt; border-top: none; border-right: 1pt solid; border-bottom: 1pt solid; border-left: none; text-align: left;"> <p align="right" style="text-align: right; line-height: normal;">$225,000</p> </td> </tr> <tr> <td width="414" valign="top" style="width: 310.25pt; padding: 0in 5.4pt; border-top: none; border-right: 1pt solid; border-bottom: 1pt solid; border-left: 1pt solid; text-align: left;"> <p style="line-height: normal;">Ken's Retirement Value at time of Divorce</p> </td> <td width="210" valign="top" style="width: 157.25pt; padding: 0in 5.4pt; border-top: none; border-right: 1pt solid; border-bottom: 1pt solid; border-left: none; text-align: left;"> <p align="right" style="text-align: right; line-height: normal;">$225,000</p> </td> </tr> <tr> <td width="414" valign="top" style="background: black; width: 310.25pt; padding: 0in 5.4pt; border-top: none; border-right: 1pt solid; border-bottom: 1pt solid; border-left: 1pt solid; text-align: left;"> <p style="line-height: normal;"><span style="color: white;">Computation of Tax</span></p> </td> <td width="210" valign="top" style="background: black; width: 157.25pt; padding: 0in 5.4pt; border-top: none; border-right: 1pt solid; border-bottom: 1pt solid; border-left: none; text-align: left;"> <p align="right" style="text-align: right; line-height: normal;"> </p> </td> </tr> <tr> <td width="414" valign="top" style="width: 310.25pt; padding: 0in 5.4pt; border-top: none; border-right: 1pt solid; border-bottom: 1pt solid; border-left: 1pt solid; text-align: left;"> <p style="line-height: normal;">Subsequent Sales Price by Barbie</p> </td> <td width="210" valign="top" style="width: 157.25pt; padding: 0in 5.4pt; border-top: none; border-right: 1pt solid; border-bottom: 1pt solid; border-left: none; text-align: left;"> <p align="right" style="text-align: right; line-height: normal;">$975,000</p> </td> </tr> <tr> <td width="414" valign="top" style="width: 310.25pt; padding: 0in 5.4pt; border-top: none; border-right: 1pt solid; border-bottom: 1pt solid; border-left: 1pt solid; text-align: left;"> <p style="line-height: normal;">Less Sales Costs</p> </td> <td width="210" valign="top" style="width: 157.25pt; padding: 0in 5.4pt; border-top: none; border-right: 1pt solid; border-bottom: 1pt solid; border-left: none; text-align: left;"> <p align="right" style="text-align: right; line-height: normal;">$68,000</p> </td> </tr> <tr> <td width="414" valign="top" style="width: 310.25pt; padding: 0in 5.4pt; border-top: none; border-right: 1pt solid; border-bottom: 1pt solid; border-left: 1pt solid; text-align: left;"> <p style="line-height: normal;">Less Basis (the home was refinance several times with cash out)</p> </td> <td width="210" valign="top" style="width: 157.25pt; padding: 0in 5.4pt; border-top: none; border-right: 1pt solid; border-bottom: 1pt solid; border-left: none; text-align: left;"> <p align="right" style="text-align: right; line-height: normal;">$200,00</p> </td> </tr> <tr> <td width="414" valign="top" style="width: 310.25pt; padding: 0in 5.4pt; border-top: none; border-right: 1pt solid; border-bottom: 1pt solid; border-left: 1pt solid; text-align: left;"> <p style="line-height: normal;">Capital Gain</p> </td> <td width="210" valign="top" style="width: 157.25pt; padding: 0in 5.4pt; border-top: none; border-right: 1pt solid; border-bottom: 1pt solid; border-left: none; text-align: left;"> <p align="right" style="text-align: right; line-height: normal;">$706,750</p> </td> </tr> <tr> <td width="414" valign="top" style="width: 310.25pt; padding: 0in 5.4pt; border-top: none; border-right: 1pt solid; border-bottom: 1pt solid; border-left: 1pt solid; text-align: left;"> <p style="line-height: normal;">Less Section 121 Exclusion for single person</p> </td> <td width="210" valign="top" style="width: 157.25pt; padding: 0in 5.4pt; border-top: none; border-right: 1pt solid; border-bottom: 1pt solid; border-left: none; text-align: left;"> <p align="right" style="text-align: right; line-height: normal;">$250,000</p> </td> </tr> <tr> <td width="414" valign="top" style="width: 310.25pt; padding: 0in 5.4pt; border-top: none; border-right: 1pt solid; border-bottom: 1pt solid; border-left: 1pt solid; text-align: left;"> <p style="line-height: normal;">Remaining Taxable Gain</p> </td> <td width="210" valign="top" style="width: 157.25pt; padding: 0in 5.4pt; border-top: none; border-right: 1pt solid; border-bottom: 1pt solid; border-left: none; text-align: left;"> <p align="right" style="text-align: right; line-height: normal;">$456,750</p> </td> </tr> <tr> <td width="414" valign="top" style="width: 310.25pt; padding: 0in 5.4pt; border-top: none; border-right: 1pt solid; border-bottom: 1pt solid; border-left: 1pt solid; text-align: left;"> <p style="line-height: normal;">Tax Due at 15%</p> </td> <td width="210" valign="top" style="width: 157.25pt; padding: 0in 5.4pt; border-top: none; border-right: 1pt solid; border-bottom: 1pt solid; border-left: none; text-align: left;"> <p align="right" style="text-align: right; line-height: normal;">$68,513</p> </td> </tr> <tr> <td width="414" valign="top" style="background: black; width: 310.25pt; padding: 0in 5.4pt; border-top: none; border-right: 1pt solid; border-bottom: 1pt solid; border-left: 1pt solid; text-align: left;"> <p style="line-height: normal;"><span style="color: white;">Computation of Proceeds</span></p> </td> <td width="210" valign="top" style="background: black; width: 157.25pt; padding: 0in 5.4pt; border-top: none; border-right: 1pt solid; border-bottom: 1pt solid; border-left: none; text-align: left;"> <p align="right" style="text-align: right; line-height: normal;"> </p> </td> </tr> <tr> <td width="414" valign="top" style="width: 310.25pt; padding: 0in 5.4pt; border-top: none; border-right: 1pt solid; border-bottom: 1pt solid; border-left: 1pt solid; text-align: left;"> <p style="line-height: normal;">Sales Price</p> </td> <td width="210" valign="top" style="width: 157.25pt; padding: 0in 5.4pt; border-top: none; border-right: 1pt solid; border-bottom: 1pt solid; border-left: none; text-align: left;"> <p align="right" style="text-align: right; line-height: normal;">$975,000</p> </td> </tr> <tr> <td width="414" valign="top" style="width: 310.25pt; padding: 0in 5.4pt; border-top: none; border-right: 1pt solid; border-bottom: 1pt solid; border-left: 1pt solid; text-align: left;"> <p style="line-height: normal;">Less Sales Costs</p> </td> <td width="210" valign="top" style="width: 157.25pt; padding: 0in 5.4pt; border-top: none; border-right: 1pt solid; border-bottom: 1pt solid; border-left: none; text-align: left;"> <p align="right" style="text-align: right; line-height: normal;">$68,000</p> </td> </tr> <tr> <td width="414" valign="top" style="width: 310.25pt; padding: 0in 5.4pt; border-top: none; border-right: 1pt solid; border-bottom: 1pt solid; border-left: 1pt solid; text-align: left;"> <p style="line-height: normal;">Less Mortgage Balance</p> </td> <td width="210" valign="top" style="width: 157.25pt; padding: 0in 5.4pt; border-top: none; border-right: 1pt solid; border-bottom: 1pt solid; border-left: none; text-align: left;"> <p align="right" style="text-align: right; line-height: normal;">$750,000</p> </td> </tr> <tr> <td width="414" valign="top" style="width: 310.25pt; padding: 0in 5.4pt; border-top: none; border-right: 1pt solid; border-bottom: 1pt solid; border-left: 1pt solid; text-align: left;"> <p style="line-height: normal;">Less Federal Income Tax Due</p> </td> <td width="210" valign="top" style="width: 157.25pt; padding: 0in 5.4pt; border-top: none; border-right: 1pt solid; border-bottom: 1pt solid; border-left: none; text-align: left;"> <p align="right" style="text-align: right; line-height: normal;">$68,513</p> </td> </tr> <tr> <td width="414" valign="top" style="width: 310.25pt; padding: 0in 5.4pt; border-top: none; border-right: 1pt solid; border-bottom: 1pt solid; border-left: 1pt solid; text-align: left;"> <p style="line-height: normal;">Net Proceeds</p> </td> <td width="210" valign="top" style="width: 157.25pt; padding: 0in 5.4pt; border-top: none; border-right: 1pt solid; border-bottom: 1pt solid; border-left: none; text-align: left;"> <p align="right" style="text-align: right; line-height: normal;">$88,487</p> </td> </tr> </tbody> </table> <br> Natasha @ SOLDbyNat.comhttp://www.blogger.com/profile/06771202476367259825noreply@blogger.com0tag:blogger.com,1999:blog-9093358619527064022.post-8903565169440148652023-10-10T04:59:00.001-07:002023-10-10T04:59:20.444-07:00Exploring Down Payment Sources for First-Time Homebuyers<img style="max-width: 100%; height: auto; width: 100%;" processed="true" height="auto" width="100%" src="https://betterhomeowners.com/image.ashx/9ffaf6c6-721f-4ef5-8801-8d0199168978.jpg"><br> <br> <p><span style="background: white; color: rgb(31, 31, 31);">Aspiring homeowners can overcome the challenge of saving for a down payment by taking advantage of various sources of assistance.<span> </span>Discover a variety of down payment sources available to first-time homebuyers, from family gifts and retirement account withdrawals to tax refunds and down payment assistance programs, empowering them to achieve their dream of homeownership.</span><strong><span style="background: white; color: rgb(31, 31, 31);"><span> </span></span></strong></p> <p>Implementing effective savings strategies is paramount for first-time homebuyers. Setting a budget, reducing unnecessary expenses, and establishing an automated savings plan can accelerate down payment savings. <span></span>In addition, consistently monitoring spending habits and making adjustments can help maximize savings potential. <span></span>Saving for a down payment takes time and there may be some other alternatives available to you.</p> <p>One possible source of down payment funds is a generous gift from family members. Through the annual gift tax exclusion, individuals can receive up to $17,000 per year from each family member without incurring gift tax obligations. This can significantly contribute to a first-time homebuyer's down payment, making homeownership more attainable.</p> <p>For instance, a husband and wife can each gift $17,000 to their child and the child's spouse to make a total of $68,000.<span> </span>This is a substantial amount that may allow the borrower to avoid PMI. <span> </span>If the child is going to be the heir ultimately, should the parents not currently need the money, it allows them to see the enjoyment of the gift now. </p> <p>First-time homebuyers who have been diligently saving in their retirement accounts may have the option to tap into their 401(k) or IRA funds for their down payment. Certain retirement plans allow penalty-free withdrawals for qualified home purchases. However, it's crucial to consider the long-term impact on retirement savings and potential tax implications. Consulting with a financial or tax advisor is recommended to understand the specifics and make an informed decision.</p> <p>Buyers with permanent life insurance policies may have accumulated cash value over time. This cash value can be accessed and used towards a down payment. However, it's important to evaluate the impact on the policy's death benefit and to consider the long-term implications before making any decisions. Consulting with an insurance professional is advisable to fully understand the terms and consequences associated with tapping into life insurance cash value.</p> <p>Tax refunds can provide a boost to first-time homebuyers' down payment savings. By planning ahead and adjusting tax withholdings, individuals can aim to receive a substantial refund at tax time, which can then be allocated toward the down payment. </p> <p>Many governments, employers, and non-profit organizations offer down payment assistance programs to support first-time homebuyers. These programs can provide grants, loans, or matching funds to help bridge the gap between savings and the required down payment amount. Eligibility criteria and program specifics vary, so researching and exploring available options in your area is essential. Working with a knowledgeable real estate agent or loan officer can help identify suitable programs and navigate the application process effectively.</p> <p>Silent second programs are offered by certain local governments or housing authorities. These programs provide a second loan, often at a low or zero-interest rate, to supplement the homebuyer's down payment. The loan is "silent" because no monthly payments are typically required. However, repayment may be required when the home is sold or refinanced. Understanding the terms and conditions of such programs is crucial to ensure compliance and avoid unexpected financial obligations.</p> <p>In recent years, crowdfunding has gained popularity to raise funds for various purposes, including down payments. Dedicated platforms allow individuals to create campaigns and seek contributions from family, friends, and even strangers who support their homeownership journey. While crowdfunding can be a viable option, it's vital to carefully read platform policies, consider potential tax implications, and approach the process with transparency and integrity.<span> </span></p> <p>First-time homebuyers have multiple options when it comes to down payment sources. From receiving family gifts and utilizing retirement savings to exploring down payment assistance programs and implementing effective savings strategies, aspiring homeowners can find ways to turn their dreams of homeownership into a reality. </p> <p>By understanding the available resources and seeking professional guidance, first-time buyers can navigate the path to homeownership with greater confidence and financial stability.<span> </span>Your real estate professional can be very helpful in guiding you through which programs may be available.<span> </span>They can guide you to a lender who specializes in down payment assistance and other special programs.</p> <p>For more information, download the <a class="Guide.2t8UpHE4I0a3evWeuNc5aw" href="https://BetterHomeowners.com/NatashaBazile/guide/2t8UpHE4I0a3evWeuNc5aw?C={Contact.Id}"> Buyers Guide</a>.</p> Natasha @ SOLDbyNat.comhttp://www.blogger.com/profile/06771202476367259825noreply@blogger.com0tag:blogger.com,1999:blog-9093358619527064022.post-18930005802864493172023-10-03T04:59:00.001-07:002023-10-03T04:59:40.809-07:00Your Referrals Mean the World to Us <img style="max-width: 100%; height: auto; width: 100%;" processed="true" height="auto" width="100%" src="https://betterhomeowners.com/image.ashx/2829006b-4f3a-49a2-9bda-99e9e8fd0797.jpg"><br> <br> <p>Referrals are the lifeblood of any business, and real estate is no exception. When someone you trust refers you to a service provider, you're more likely to do business with them because you know that they've been vetted by someone you know and trust.</p> <p>That's why we're so grateful for the referrals we've received from our past clients. It's a wonderful feeling to know that our work has been so appreciated. If you know anyone who's thinking of buying or selling a home, please don't hesitate to refer them to us. We'd be honored to help them.</p> <p>We're a team of experienced real estate agents who are passionate about helping people find their dream homes. We have a proven track record of success, and we're dedicated to providing our clients with the best possible service. If you know anyone who's thinking of buying or selling a home, please refer them to us.</p> <p>We're known for our excellent customer service and willingness to go the extra mile to help our clients achieve their goals. </p> <p>Thank you for your referrals! They mean the world to us.</p> Natasha @ SOLDbyNat.comhttp://www.blogger.com/profile/06771202476367259825noreply@blogger.com0tag:blogger.com,1999:blog-9093358619527064022.post-14337340767843664162023-09-26T04:59:00.001-07:002023-09-26T04:59:20.483-07:00Awareness is Key to Safeguarding Against Scams <img style="max-width: 100%; height: auto; width: 100%;" processed="true" height="auto" width="100%" src="https://betterhomeowners.com/image.ashx/fdd2ecf5-3a6c-4190-a593-5bed32804685.jpg"><br> <br> <p>When it comes to safeguarding against scams, awareness is key. By being vigilant and recognizing consistent red flags, you can effectively thwart scammers in their tracks. Stay one step ahead and keep an eye out for these warning signs to protect yourself from falling victim to fraudulent schemes.</p> <p><strong style="background-color: var(--bs-body-bg); font-family: var(--bs-body-font-family); font-size: var(--bs-body-font-size); text-align: var(--bs-body-text-align);">Unexpected contact</strong><span style="background-color: var(--bs-body-bg); font-size: var(--bs-body-font-size); font-weight: var(--bs-body-font-weight); text-align: var(--bs-body-text-align); font-family: var(--bs-body-font-family);"> - You receive unanticipated contact by phone, text, or email from an individual or organization regarding an invoice, order, delivery, or charge that you don't know about.</span><br> </p> <p><strong style="background-color: var(--bs-body-bg); font-family: var(--bs-body-font-family); font-size: var(--bs-body-font-size); text-align: var(--bs-body-text-align);">Sense of Urgency</strong><span style="background-color: var(--bs-body-bg); font-size: var(--bs-body-font-size); font-weight: var(--bs-body-font-weight); text-align: var(--bs-body-text-align); font-family: var(--bs-body-font-family);"> - Scammers employ tactics to manipulate and create a fabricated sense of urgency, resorting to rude or aggressive language to pressure you into taking immediate action.</span><br> </p> <p><strong style="background-color: var(--bs-body-bg); font-family: var(--bs-body-font-family); font-size: var(--bs-body-font-size); text-align: var(--bs-body-text-align);">Unusual Payment Requests</strong><span style="background-color: var(--bs-body-bg); font-size: var(--bs-body-font-size); font-weight: var(--bs-body-font-weight); text-align: var(--bs-body-text-align); font-family: var(--bs-body-font-family);"> - Be cautious if someone asks you to make payments or send money through unconventional methods such as gift cards, cryptocurrency, payment apps, or online wire transfers to deceive you into paying for something, resolving a fabricated issue, claiming fake sweepstakes winnings, or promising unrealistically high returns on investments. .</span><br> </p> <p><strong style="background-color: var(--bs-body-bg); font-family: var(--bs-body-font-family); font-size: var(--bs-body-font-size); text-align: var(--bs-body-text-align);">Coercive Communication</strong><span style="background-color: var(--bs-body-bg); font-size: var(--bs-body-font-size); font-weight: var(--bs-body-font-weight); text-align: var(--bs-body-text-align); font-family: var(--bs-body-font-family);"> - threatening language, claiming that you owe money and using scare tactics like threatening to involve the police if immediate payment is not made.</span><br> </p> <p><strong style="background-color: var(--bs-body-bg); font-family: var(--bs-body-font-family); font-size: var(--bs-body-font-size); text-align: var(--bs-body-text-align);">Love Scam Trap</strong><span style="background-color: var(--bs-body-bg); font-size: var(--bs-body-font-size); font-weight: var(--bs-body-font-weight); text-align: var(--bs-body-text-align); font-family: var(--bs-body-font-family);"> - Watch out for a potential online love interest who showers you with romantic words but avoids meeting face-to-face. Be cautious of these "romantic emergencies" and avoid sending money to someone you haven't met in person.</span><br> </p> <p><strong style="background-color: var(--bs-body-bg); font-family: var(--bs-body-font-family); font-size: var(--bs-body-font-size); text-align: var(--bs-body-text-align);">Homebuyers Specific</strong><span style="background-color: var(--bs-body-bg); font-size: var(--bs-body-font-size); font-weight: var(--bs-body-font-weight); text-align: var(--bs-body-text-align); font-family: var(--bs-body-font-family);"> ... Particularly during the closing process, scammers employ deceptive tactics by sending fraudulent emails to homebuyers, impersonating trusted individuals such as the real estate agent, settlement agent, or legal representative. These spoofed emails contain fictitious instructions for wiring closing funds, putting unsuspecting homebuyers at risk of financial loss.</span><br> </p> <p><span style="background-color: var(--bs-body-bg); font-size: var(--bs-body-font-size); font-weight: var(--bs-body-font-weight); text-align: var(--bs-body-text-align); font-family: var(--bs-body-font-family);">Always verify with your agent and another trusted individual like a settlement or mortgage officer that the request for funds is legitimate before transferring money.</span><br> </p> <p><span style="background-color: var(--bs-body-bg); font-size: var(--bs-body-font-size); font-weight: var(--bs-body-font-weight); text-align: var(--bs-body-text-align); font-family: var(--bs-body-font-family);">If you feel that you have become a victim of such a scam, contact your bank or wire-transfer company immediately to ask for a wire recall. Responding as soon as possible may increase the likelihood you'll be able to stop the transfer and/or recover your funds.</span><br> </p> <p><span style="background-color: var(--bs-body-bg); font-size: var(--bs-body-font-size); font-weight: var(--bs-body-font-weight); text-align: var(--bs-body-text-align); font-family: var(--bs-body-font-family);">For more information, see </span><a href="https://www.consumerfinance.gov/about-us/blog/mortgage-closing-scams-how-protect-yourself-and-your-closing-funds/#:~:text=During%20the%20closing%20process%2C%20scammers,instructions%20for%20wiring%20closing%20funds." style="background-color: var(--bs-body-bg); font-family: var(--bs-body-font-family); font-size: var(--bs-body-font-size); font-weight: var(--bs-body-font-weight); text-align: var(--bs-body-text-align);"><em>Mortgage Closing Scams</em></a><span style="background-color: var(--bs-body-bg); font-size: var(--bs-body-font-size); font-weight: var(--bs-body-font-weight); text-align: var(--bs-body-text-align); font-family: var(--bs-body-font-family);"> on the Consumer Financial Protection Bureau website.</span><br> </p> <p><span style="font-size: 11pt; background-color: var(--bs-body-bg); font-weight: var(--bs-body-font-weight); text-align: var(--bs-body-text-align); font-family: var(--bs-body-font-family);">If you want to report a suspected crime, contact the Internet Crime Complaint Center or IC3. The nation's central hub for reporting cyber crime is run by the FBI, the leading federal agency for investigating cybercrime. Go to their </span><a href="https://www.ic3.gov/#:~:text=The%20Internet%20Crime%20Complaint%20Center,and%20your%20own%20online%20security." style="font-size: 11pt; background-color: var(--bs-body-bg); font-family: var(--bs-body-font-family); font-weight: var(--bs-body-font-weight); text-align: var(--bs-body-text-align);">website</a><span style="font-size: 11pt; background-color: var(--bs-body-bg); font-weight: var(--bs-body-font-weight); text-align: var(--bs-body-text-align); font-family: var(--bs-body-font-family);"> for more information and to file a complaint.</span><br> </p> Natasha @ SOLDbyNat.comhttp://www.blogger.com/profile/06771202476367259825noreply@blogger.com0tag:blogger.com,1999:blog-9093358619527064022.post-3432759719403844412023-09-19T04:59:00.001-07:002023-09-19T04:59:46.996-07:00How to Buy Your First Home as an Investment and Retire Rich <img style="max-width: 100%; height: auto; width: 100%;" processed="true" height="auto" width="100%" src="https://betterhomeowners.com/image.ashx/f2514927-61ff-49a8-82d0-f788d08dee96.jpg"><br> <br> <p>As young people enter the full-time workforce and begin to think about living on their own, it may not seem practical or wise to consider buying a home.<span> </span>However, it may be a pivotal decision for your financial security and future retirement.</p> <p>Rents are going to increase based on the shortage of rental units needed for the demand of the market.<span> </span>Buying a home is a way to control those costs and even provide income by converting it to a rental as you decide to move up into another home.</p> <p>There is an advantage to buying a home before a person gets married, starts a family, and has their standard of living at a higher pace.<span> </span>Their expenses are lower, and it is easier to not only qualify for a loan but possibly, take advantage of programs for down payment assistance, grants, or other options like gift funds or co-signers. </p> <p>Purchasing a home is a significant financial decision, particularly for first-time homebuyers. However, there are several benefits to buying a home early in your career, even if it is not your dream home.</p> <p>One of the most significant benefits of buying a home as an investment is that it can help you build equity. Equity is the difference between the value of your home and the amount you owe on your mortgage. As your home's value increases, so does your equity. This can be a valuable asset in the future, as you can use it to finance other investments or retirement expenses.</p> <p>Another benefit of buying a home as an investment is that it can generate passive income. If you rent out a room or two in your home, you can use the rent to help cover your mortgage payments and other expenses. This can free up your disposable income to invest in other areas, such as your retirement savings.</p> <p>Of course, there are some risks associated with buying a home as an investment. The value of your home may not always increase, and you may have to deal with unexpected expenses, such as repairs or maintenance. However, the potential benefits of homeownership can outweigh the risks, particularly if you are strategic about your investment.</p> <p>When choosing a home to purchase as an investment, it is important to consider the location. A home in a desirable area that is likely to appreciate in value over time is a wise investment. It is also important to consider the size of the home. A home with three or four bedrooms will be easier to rent than a property with less.</p> <p>The strategy can be as simple as:</p> <ol> <li>Buy a house when you enter the workforce and take on paying roommates.<span> </span>Declare the income on your income tax.</li><li>It doesn't have to be the perfect home, but it does need to be a good home in a good area.</li><li>Never sell the home; instead, convert it to a rental when you move up in the near future as your income goes up.</li></ol> <p>If you have young adult children who would benefit from this advice, please share it with them along with our <a class="Guide.2t8UpHE4I0a3evWeuNc5aw" href="https://BetterHomeowners.com/NatashaBazile/guide/2t8UpHE4I0a3evWeuNc5aw?C={Contact.Id}"> Buyer's Guide</a>.<span> </span>If they would like to learn more specifics, we would love the opportunity to meet with them.</p> Natasha @ SOLDbyNat.comhttp://www.blogger.com/profile/06771202476367259825noreply@blogger.com0