Should You Refinance?

The Herald-News Home life

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Benefits of refinancing

• Paying off your mortgage early: For example, if you go from a 30 year loan to a 15 year loan without a big increase in your monthly payment, you could save thousands of dollars in interest while quickly increasing the equity in your home.
• Increase cash flow: Obtaining a lower interest rate on your mortgage may lower your monthly payment and allow you to have more cash to decrease your debt or expand your budget. 
• Utilize home equity: With a cash-out refinance, you are able to borrow more money than you currently owe on your loan. You can then use that money to pay down debt, make home improvements, or to get out from under financial burden.

Consider these factors before refinancing

• Credit score: The higher a credit score, the better interest rate you will get.
• Closing costs: Although it may be an option to add the closing costs into the refinanced loan amount, it's better to pay those costs in cash.
• Your mortgage in relation to your family's financial situation: What is your household budget? Are there college expenses on the horizon? What are your financial goals?
• If you end up with a lower monthly payment, how will you handle the extra cash? In a perfect world, the cash you save on your mortgage payment should be used to pay down debt or to increase the size of your savings account.

4 Things To Stop Doing As Soon As You're Pre-Approved

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1. Don't use your credit cards past 30% of your available balance: Doing this can affect your credit score in a negative way. Depending on how long it takes to find a home, your credit may need to be pulled up again.
2. Don't make large deposits in your bank account that can't be easily sourced: Large deposits (other than salary) are red flags and they need to be sourced. Your lender will want to know where any large deposits came from.
3. Don't switch jobs: Avoid switching jobs if possible; consistent income is important when getting approved for a loan.
4. Stop making large purchases: When a lender pulls up your credit, they are looking at the ratio between your liabilities and your income. If your liabilities increase, there is a chance that the amount you are pre-approved for will decrease. 

4 Tips For First Time Home Sellers

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1. Find the right agent:  Selling your home is a big decision and finding an agent that you trust and are comfortable with is very important.
2. You need to be ready to sell: With the internet now, you only get one chance to create a first impression of your home. If your home is listed at an unrealistic price or when it's not in good condition, the number of days on the market (DOM) could add up and harm you in the long run.
3. DOM could affect a buyer's offer: An average buyer will look at a listing and first take note of the price and the size of the home. They will look at the photos and then look at how long the home has been on the market; if it's been for sale longer than three months they may see that as a negative. 
4. If you receive an offer, you have to move soon: When you get an acceptable offer and you sign a contract, time is ticking towards your closing date. Don't sell until you are ready and be sure to have a plan in place for where you are going to go once your home is sold.

New Year's Resolution: Saving For A House

Realtor Mag

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For many of us, starting a new year means setting goals to achieve in the coming months. For some of us, one of these goals may be saving for a home.

• How long does it take to save?: 37% of recent home buyers said it took them 6 months or less to save for a down payment, 15% saved for 6-12 months, and 10% said they saved for 12-18 months.
• Saving can mean sacrifices: 72% of home buyers reported cutting back on luxury or non-essential items in order to save, 56% spent less on entertainment, and 45% spent less on clothing to save money.
• Don't be discouraged about saving: Many home buyers needed a smaller down payment than they thought they would need. The average down payment is 6% for first time buyers and 13% for repeat buyers.
• It's well worth it: 79% of recent buyers regard their home as a good financial investment with many believing it to be a better investment than stocks.

Benefits Of Using A Realtor To Sell Your Home

• Getting your home listed at the right price
• Great presentation of your home
• Increased buyer exposure
• Obtain higher offers from buyers
• Negotiation of home inspection results
• Possibility of a quick close
• Selling your home at top dollar

Homes Of The Near Future

House Logic

                                                                

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There are 4 trends which are gaining popularity which seem to point to home features that will be important in the future. I'm not talking about homes run by robots, but instead home features that will increase home values, be more environmentally friendly, and suit our lifestyles.

1. Extreme Energy Efficiency: Waterless toilets, Grey water systems (These currently reuse up to 60% of your household water for flushing toilets and watering the lawn), and garages wired for electric cars are just some of the trends expected to emerge onto the mainstream in the near future.
2. Preparing for super storms: Since there has been an increase in super storms that have left consumers without electricity for long periods of time, it is expected that many homes will be equipped with whole house generators. These can keep a household running comfortably until the power is restored.
3. Locally grown: With many people gravitating towards eating healthier and making better choices, indoor gardens will become more popular. Edible indoor kitchen gardens will be making it possible for many people to eat farm to table right at home.
4. Better appliances: General Electric recently announced it's vision for 2025 home appliances, and the changes made to our everyday appliances were very remarkable. Faucets will dispense not only water, but ice, beverages, and vitamins as well. Sinks will double as mini-dishwashers and will be able to wash a small load of dishes in only minutes. Laundry machines will not only clean clothes but will also fold them into small compact bundles. 

The changes coming to our homes in the near future are exciting and will definitely make a big impact on our everyday lives!