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Tips to reduce your homeowner's insurance cost

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Home insurance rates have increased by almost 20% nationally between 2021 and 2023 and even more in some states like Arizona where rates have jumped 62% in some cases.   The appreciation that homeowners have enjoyed, especially in the past four years, has caused premiums to increase because the values are higher.   In addition, insurance is affected by inflation due to the increased cost of labor and building materials used to calculate the replacement cost of the dwelling. Natural disasters, especially in coastal areas, tornados, fires, and hail are just a few of the things that insurers have paid considerable claims and are driving the prices of premiums higher.   Some insurers are pulling out of high-risk areas which make it difficult for homeowners to not only find coverage but at reasonable prices. There are several things that homeowners can do to lower the cost of their policies. Increase Deductibles - Opt for a higher deductible to reduce premium costs, but ensu
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Finding Affordability in Lessons of the Past

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In the 1980s, home buyers faced significantly higher mortgage rates compared to today's market. Despite this challenge, many people successfully purchased homes and made them worthwhile investments. They employed a range of strategies to manage costs and ensure affordability. Here are the key tactics they used, explained in detail: To reduce the amount borrowed and thereby lower monthly payments, many buyers saved for larger down payments. By putting more money down upfront, they could decrease their loan-to-value ratio, often securing better interest rates and reducing private mortgage insurance (PMI) costs. Strict budgeting was essential. Buyers meticulously planned their finances, cutting unnecessary expenses and prioritizing savings. This disciplined approach enabled them to accumulate sufficient funds for down payments and to manage ongoing homeownership costs without financial strain. Purchasing smaller or starter homes was a common strategy. These properties
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Convenient but not accurate can cost you money

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Online estimates like Zillow, realtor.com, Redfin, & Homes.com are convenient, but typically lack accuracy and may have a significant margin of error.   They are constructed using a computer-generated algorithm that utilizes historical public sales data and trends called an Automated Value Model, AVM. National AVMs derive values from automated computer modeling of public records and may not reflect the true value of a home due to the nuances of local markets.   An experienced agent, familiar with home sales in the area, takes several steps to arrive at a more accurate fair market value. Real estate agents provide invaluable expertise by leveraging their deep understanding of local market conditions. This includes insights into neighborhood trends, recent sales data, and current inventory levels. By tapping into this knowledge, agents can accurately assess the fair market value of a home. They conduct thorough property inspections, meticulously noting its condition, un
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Benefits of Checking your Credit Regularly

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You are encouraged by the Federal Trade Commission to be sure the information on your credit reports is accurate, complete, and up to date at least once a year.   It is an important part of your financial life that can determine whether you get credit, the terms of the credit and how much it will cost. In addition to borrowing money, good credit could affect premiums on insurance, employers' hiring decisions, ability to rent a home. Checking your credit history and credit scores: Helps you better understand your current credit position. Makes you aware of what lenders may see. Protects you from inaccurate or incomplete information. Recognize identity theft. Free annual credit reports can be ordered from Equifax, Experian, and Transunion through their centralized website - AnnualCreditReport.com , toll-free phone number ... 877-322-8228, and mailing address ... Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. These are the only ways to
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An annual home equity update benefits homeowners

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Homeowners should verify their home's equity at least once a year because the two factors that affect it change regularly.   Market value changes and the unpaid balance of the home decreases with each monthly payment made on an amortizing loan.   Amortization and appreciation cause the equity to increase in value.   Knowing your equity gives you options with regards to refinancing the home and releasing part of that equity. The equity in your home can offer a financial safety net providing funds for emergencies or major life events, leveraged for investments or home improvements.   An annual update on your home's equity will ensure you stay informed about your financial position and opportunities for growth. Refinancing a residence is a strategic financial move that allows homeowners to optimize their mortgage and tap into various benefits. Whether it's about securing a lower interest rate, consolidating debt, or accessing cash for significant life events, r
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Is a friend your best choice for your agent?

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In the realm of real estate transactions, the decision to engage a friend who also happens to be an agent may seem like a tenuous situation and may cause some hesitation. Concerns about how professional relationships may impact their personal connection occasionally weighs on a person's mind, leading them to consider alternative options. It may stem from the fear that any hiccups or disagreements during the transaction may strain or even jeopardize the friendship. It may actually be the opposite.   There are many advantages to working with a professional to find your home who also happens to be your friend. Trust: Having a friend as your agent allows for a pre-existing level of trust, enhancing communication and transparency throughout the transaction. Personalized Service: A friend-agent is likely to provide highly personalized service, tailored to your specific needs and preferences. Understanding: Friends understand your lifestyle, preferences, and priorities, enab
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Key Considerations When Downsizing Your Home

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While the process of downsizing may initially focus on finding a smaller property, it's essential for homeowners to also think ahead and plan for the future by including considerations such as aging in place, healthcare needs, and financial security, and offer guidance on creating a comprehensive plan for the years ahead. Assessing Long-Term Needs Before downsizing, take the time to assess your long-term needs and goals. Consider factors such as your health, mobility, and lifestyle preferences, as well as any anticipated changes in family dynamics or caregiving responsibilities. Think about how your housing needs may evolve as you age and whether your downsized home will be able to accommodate these changes. Aging in Place Many homeowners choose to downsize with the intention of aging in place, remaining in their home as they grow older. When selecting a downsized property, prioritize features that support aging in place, such as single-level living, wide doorways a
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