Showing posts from August, 2018

Reduce Refinancing Costs

There is much more than a lower rate and payment to determine whether to refinance a mortgage.   Lenders try to make refinancing as attractive as possible by rolling the closing costs into the new mortgage so there isn't any out of pocket cash required. The closing costs associated with a new loan could add several thousand dollars to your mortgage balance.   The following suggestions may help you to reduce the expense to refinance. ·          Tell the lender up-front that you want to have the loan quoted with minimal closing costs. ·          Check with your existing lender to see if the rate and closing costs might be cheaper.   ·          Shop around with other lenders and compare rate and closing costs. ·          If you're refinancing an FHA or VA loan, consider the streamline refinance. ·          Credit unions may have lower closing costs because they are generally loaning deposits and their cost of funds is less. ·          Reducing the loan-to-value so mo

Moisture & Mold

Moisture is mold's best friend and it thrives between 40 and 100 degrees Fahrenheit which is why it is commonly found in homes.   Mold spores float in the air and can grow on virtually any substance with moisture including tile, wood, drywall, paper, carpet, and food. Moisture control and eliminating water problems are key to preventing mold. Common sources of moisture can be roof leaks, indoor plumbing leaks, outdoor drainage problems, damp basements or crawl spaces, steam from bathrooms or kitchen, condensation on cool surfaces, humidifiers, wet clothes drying inside, or improper ventilation of heating and cooking appliances. Control the moisture problem Scrub mold off hard surfaces using soap and water or other cleanser; dry completely Do not paint or caulk moldy surfaces Discard porous materials with extensive mold growth Avoid exposing yourself or others to mold Periodically, inspect the area for signs of moisture and new mold growth

What to Avoid Before Closing Your New Home

It's understandable; you’re excited; you've found the right home, negotiated a contract, made a loan application and inspections.   Closing is not that far away, and you are making plans to move and put personal touches on your new home. Even if you have an initial approval on your mortgage, little things can derail the process which isn't over until the papers are signed at settlement and funds distributed to the seller.   The verifications are usually done again just prior to the closing to determine if there have been any material changes to the borrower's credit or income that might disqualify them. Most lending and real estate professionals recommend NOT to: Make any new major purchases that could affect your debt-to-income ratio Buy things for your new home until after you close Apply, co-sign or add any new credit Close or consolidate credit card accounts without advice from your lender Quit your job or change jobs Chang

Rising Rates Affect the Cost Too

Mortgage rates have risen 0.5% in 2018 on 30-year and 15-year fixed rate mortgages and experts expect them to continue to increase. Buyers paying attention to the market understand the relationship that inventory has on pricing; when the supply is low, the price usually goes up. Rising interest rates can affect the cost of homes also. When interest rates go up, fewer people can afford homes. Lower numbers of buyers can affect the demand, which could cause prices of homes to come down. The question is how much do the interest rates have to go up to affect demand? As the rates gradually go up, the affect may not be noticeable at all except for the fact that the payments for the buyer have increased. A ½% change in interest is approximately equal to a 5% change in price. A $300,000 mortgage at 4.5% for a 30-year term will have a $1,520.06 principal and interest payment. If the mortgage rate goes up 0.5%, it would affect the payment the same as if the price had gone up 5%.