Refinancing Your Home? Things You Might Not Think of ….

Are you planning to refinance your home? If you’re interested in lowering your mortgage payments, decreasing your interest rate or more, chances are you’ve probably thought about whether or not you should refi your mortgage. Refinancing Your Home

When you’re ready to learn more about preparing for a new mortgage, here are six things you might not think of when refinancing your home.

  1. You’ll have to get an appraisal. You’ll have to get an appraisal when refinancing your home, so keep your house’s value and your savings in mind when determining whether or not you should pursue smaller monthly mortgage payments or a lower interest rate.
  2. You’ll need to pay closing costs. You’ll need to pay closing costs a second time when refinancing your home, so make sure you have an adequate amount of money saved to pay these upfront fees and any other costs associated with a mortgage refi.
  3. You’ll have to think about the interest rate. Are rates higher than they were when you first financed? Are they lower? Even a small difference can mean a lot of money over time. Take into account the full picture: the number of months you’ll be paying the new mortgage and the rate you’ll be paying compared with your current timeline and rate.
  4. You’ll need to get your credit checked. The bank is going to want to check your credit score when you’re refinancing your home, so keep in mind that you won’t be able to negotiate a better deal if your credit score is lower than it was when you were first approved for a mortgage.
  5. You’ll have to go through the same process. To a certain extent, it’s like buying a house all over again, so think back to when you bought your house and make up your mind about whether or not you can dedicate enough time to the effort.
  6. You’ll need to live in your house a long time. Refinancing may not be worth it if you’re planning to move in the near future. Figure out how long you plan to live in your current place and how much your closing costs will be before making the refi decision.

These six things you might not think of when refinancing your home are important to take into account before you start shopping around for a new mortgage. Because a refi can lead to a number of benefits and costs down the road depending on the outcome, you’ll need to prepare for every scenario before making a commitment.

We’re here to help, so if you think refinancing might be right for you, we can help you decide what your next steps should be.

– To view the entire BobsHomes July Newsletter, click here.

Smart Ways to Pay Off Your Mortgage Early

Everyone who buys a home for keeps dreams of the day they make their last house payment. Here are some smart ways to go about paying off early… #mortgage

It’s a goal as cherished as early retirement. Old-fashioned methods can work. The difficulty is disciplining yourself to actually follow through. Step one to paying off your mortgage early is to make a plan. Keep in mind that Rome wasn’t built in a day and you are not going to pay off your mortgage in a few months, maybe not even in a couple of years.
mortgage pay off
Sadly, the majority of homeowners in the U.S. never even get close. However, there are some smart ways, some tried and true, some you may not have thought about, that will allow you to pay off your mortgage early.

Put Extra Away. Saving every month is a great start. But when you get that income tax refund, instead of going on a shopping spree, put it in your payoff savings account. Any extra money — a bonus, a lottery ticket win, a small inheritance — should all largely go to your payoff savings account.

Ditch the Waste. All work and no play makes you a very dull boy or girl, so ditching the waste doesn’t mean cutting off your cable, although that could add up to a couple thousand dollars a year. It means buy some Folgers instead of stopping at Starbucks every morning for a cup of Joe.

Think about it; $4 a day, five days a week, for 52 weeks each year. That’s over a thousand dollars a year just for a cup of coffee you could make at home for a few cents a week. Here are some other wasteful expenses you can ditch and how much you could save each year.

  • Your Unused Gym Membership – or even your used one — is $40 or $50 dollars a month. That adds up over time. You can exercise at home for free, and modest home equipment will pay for itself.
  • The Latest Gadgets – Changing your cell phone plan alone can save you around $100 per month.
  • Cook a Meal – Fast food, the movies, sit-down restaurants — they all eat up $100 a week out of your budget. That’s right, you’re talking potentially over $5,000 per year you could be saving just by eating in and streaming a movie instead of paying $15 per ticket at the box office.
  • Carpool and Walk – If your corner store is literally down the street, walk or ride a bike, don’t drive. When you go to work, find a carpool. You’ll be surprised how much money you can save on transportation with just those two ideas.

Make Savings Automatic. Saying you are setting aside $200 per month for your payoff amount (above and beyond your regular monthly payments) sounds good, but it only works if you actually do it. Open up a savings account just for your remaining balance, and make that monthly percentage automatic.

How do Consumers View Housing? Part 2

BUYING AND SELLING
3. Home Price Expectations  The dividing line between buyers and sellers is likely one of home prices, and indeed, the HPSI found that very few consumers expect prices to decline in the coming year.  43 % who think they will continue their ascent. The question that keeps popping up is when will be the best time to buy and the best answer is now of course!
 
4. Mortgage Rate Thoughts  Another area is mortgage rates, where consumers are similarly united in their expectations. 49% think rates will rise in the next 12 months, while only 5% think they will decline.
Although consumers expect mortgage rates to rise, a majority still think it would be relatively easy to get a mortgage, with 52% of respondents voicing that view (compared to 45% who think it would be difficult). Furthermore, consumer views towards the mortgage market have trended positive the last two years.
5. When is the best time to sell ?
So we ask the question of predicting the Housing Market where Sellers are concerned and we as confronted with wondering when is the best time to sell? The off season brings some important factors to consider like less inventory means less competition. Another important consideration is Buyers out the looking this time of year are serious and motivated. This creates a second market and avoids the spring market rush with increased inventory.
 
www.BOBSHOMES.net
Bob Idakaar GRI
WEICHERT REALTORS
973-713-2377