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Reasons Homeowners Should Refinance
Many of us may know a little about refinancing our homes, or may have heard of the savings it can bring, but many homeowners still do not know how to refinance, are scared to refinance or do not know if they qualify for refinancing. Due to the housing market struggle, many homeowners may be missing out on millions in savings because of refinance issues. Here are some reasons to refinance if you qualify, to help save you money now and in the future.
Some homeowners do not qualify for refinancing because of falling home prices leaving people with little if any equity at all. However, around thirty-seven percent of all borrowers who have thirty year fixed rate mortgages have rates of six percent or higher and many of these borrowers could reduce that rate by a full percentage if they refinanced their homes at the current rates of about five percent. Also some borrowers that refinanced their homes in 2009 will save about $3.4 billion total for that year and an additional 17.2 billion over the next five years.
Due to home prices falling and home values dropping however, most people owe more on their home than it is worth and have little or no equity, making refinancing nearly if not completely impossible. Also bank fees and other charges are turning many homeowners away from even thinking about refinancing their homes and the ones that are refinancing seem to be the ones that need it the least.
There is a little light of hope though for those having trouble refinancing; the Obama administration has decided to extend its program to help those homeowners with little or no equity in order to make refinancing easier and to make a possibility for many people. Also, other programs are being talked about to help struggling homeowners be able to refinance and save money.
It is important to refinance if you can, and if you do not know how, start doing some research and asking questions, because it could save you money in the long run. With these hard times, many of us need all the money and help we can get.
Buying a Previously Rented Home
Buying a home that has been a rental property for any length of time can create some special challenges. Knowing what to expect, and what steps you need to take to protect yourself, is essential.
There are a lot of reasons to consider buying a property that has been rented out for any length of time. They can be a fantastic deal, and the seller may be especially motivated. If the property has multiple units, you can rent out the additional units, which may pay for most of your mortgage payments. You can also convert the extra units back into one complete home, if you choose.
The first step is to learn how long the property has been rented out. Some sellers, if their home is not selling right away, may rent a property until they find a buyer. In that case, the property may have only been rented a few months. There would probably not be any major problems with this property caused by the tenant. Alternatively, if the home has been a rental for years, you need to really pay attention to the condition it’s in. Unfortunately, renters don’t always take care of a home the same way a buyer would.
Another potential issue with a rented home is that the current renters may not be enthusiastic about the sale. This is especially true if you are intending to live in the home yourself. When the property sells, they will be out of a home. It is not uncommon for a current tenant to exaggerate problems with the home, or to otherwise try to dissuade you from making the purchase.
If you are considering a previously rented home, it is essential that you hire and work with an experienced home inspector. You need to be aware of any damage that the property may have so that you can decide if the property is worth the extra work it may require. Make sure you are present for the inspection; the inspector will be able to explain any problems he or she comes across, and can tell you how serious the problem is.
It’s not always a bad thing to have several smaller problems in the inspection report. Small problems, while inconvenient, are easily fixed. Larger problems will require a little more thought. If there are major structural issues, you may be better off walking away from the property. If the problems can be fixed, ask for the current owner to either take care of it or to accept a lower purchase price that will make up for the time and expense of fixing it yourself. Your Syracuse real estate agent can help you determine a fair adjusted price for the home, and then can help you to negotiate with the sellers.
Refinancing under Obama’s Plan
Many people have seen or read reports about new programs being set up under the Obama administration to help with the housing market crisis. One of these programs is that help is being given to people that have little or no home equity which may make it hard or even impossible to refinance their home and save more money now and in the future. This program is a good idea, but many may not know if their mortgages will qualify for it or not. Here are some basics to help you know if you qualify or not and what to do once you know. This way the whole process is a little easier for everyone.
Contact you real estate agent and lender
It is part of their job to know about all new programs that may benefit current or future homeowners. They may be able to answer questions that you have or provide you with information of someone who can. They are a good starting point.
Qualify if you owe 80-105% of your current mortgage
If you owe this much on your current mortgage then you will qualify for refinancing under Obama’s plan. If you owe more, like many homeowners in Florida or California, you will not qualify under this plan and may need to consider alternatives.
Loan backed by Fannie Mae or Freddie Mac
More than half of single family loans are backed by either Fannie Mae or Freddie Mac, but many people do not know this. If you are unsure who backs your loan, it is a good idea to contact your lender for details and further help.
Have Conforming Loan
This means having a loan under a certain amount. In many places, it is under $417,000, but in areas such as San Francisco, Boston, or Washington, D.C., it may be up to $625,500.
Fill out a loan request
If you are still unsure if you qualify, you can fill out a loan request, gather up your paperwork, be informed, and be patient. Many people are filling out these requests, so it may take time to process your own.
Many people are struggling because of the economy and the housing market crisis, but some programs under Obama’s plans may help. Now that you have more information, it is important to follow these steps and to continue to stay informed about any updates or changes that may help you and your family in the future.
Affordable Suburbs in America
These days with the way the economy is looking and with the housing market in crisis, many people are looking for ways to save money, especially on housing and especially if they have a family to think of. Many places can be pretty expensive if you have a family, but some places in America allow you to get more for what you pay, or at least make the money go further. Here are some affordable suburbs in America to get you started. This way you can make a better decision about whether or not it is worth moving.
Many of these places are where people can live well for less money and still enjoy good schools, low crime rates, and not much travel time to and from work. Factors like, crime rate, education, travel time and affordability were all considered. The most affordable suburbs include:
Fishers, Indiana (Near Indianapolis)
Median Home Price: $213, 750
This place features reasonable property rates, a lower than average unemployment rate and scored well for safety. The school systems have expanded to accommodate the growing population as well.
Papillion, Nebraska
Median Home Price: $145,000
This suburb features golf courses, natural trails, parks, and many recreational opportunities. Many of the residents also only have about a twenty minute commute to and from work. Finally, students in this area score above average on national American College Tests.
Mililani Town, Hawaii
Median Home Price: $370,000
This community has a golf course, tech park, community centers, and shopping malls. It also features several schools, a low crime rate, and has many upper scale surrounding communities.
Clark, New Jersey
Median Home Price: $380,500
This community was once a farming community but now features several schools, is near many different medical centers, and has a golf course, tennis court, and parks.
Many people are looking for family friendly, safe neighborhoods near schools for their families. With this economy, these same people also want affordable places to live. After reviewing this list of some of the most affordable suburbs in America, you can now better determine what you may be looking for and if it is worth moving for or not.
Home Sales Hit New Low in January
We all know that the housing market has been struggling for quite some time. Certain areas have been hit harder than others, but just like with other markets in the economy, everyone is feeling the impact of the housing market as it struggles.
Last Wednesday, February 24, 2010, the Commerce Department said that new home sales have dropped 11.2 percent in January, the lowest level on record for nearly a half a century. This came as a big shock and surprise to many economists who were expecting a five percent increase over December’s sales. Some say that this major drop was partly due to winter weather conditions, but that the housing market has been struggling for several months despite government support and assistance.
January’s weaknesses were seen in all regions except the Midwest which saw a 2.1 percent increase. Government mortgage programs have tried to keep rates down by using the Federal Reserve to buy $1.25 trillion in back mortgage securities but that program is due to end by March 31, 2010. Other tax credits and incentives are also set to end in April.
Many people do not believe that the housing market will go under, but it will take longer to reach a good point of recovery. This means that real estate agents need to do everything they can to sell, sell, sell, and sellers need to hang in there. We all need to keep our fingers crossed, do the best we can, and hope for the very best.
Government to Stop Helping With Housing Market Crisis
The government has been trying to put together programs and incentives to help the housing market out of its crisis because of the Great Recession. Many programs like the Federal Reserve buying $1.25 trillion in mortgage securities, home buyer tax credits and other programs are scheduled to end soon.
Many of these programs including the home buyer tax credit have already been extended to April 30, 2010; because it was originally due to expire in November of 2009. Many people are now arguing that the government programs and support have not been helping enough to make them worth the time, money, and effort.
People are saying that despite government programs and help, housing markets are still struggling and sales are still continuing to drop, such as the 7.2 percent drop in home sales in January. The government is still deciding whether or not to change their programs or put more effort and money into existing ones, but many people feel that it would be a better idea for the government to stop helping altogether.
Home values are affected by many factors including but not limited to: the job market, health, the environment, and many more. Also, it is important to pay attention to whether or not the rental property business is doing well. If housing prices are low this may make buying more attractive and vice versa. If people feel that it would benefit them more to rent now and buy later when the economy and housing market are better than that is probably what they will do.
As a real estate agent it is important to know not only how the housing market is doing but rental properties as well. It is also important to keep in mind what motivates people to buy or sell their home. This way they can make the best decisions when working with their clients. It is also important for buyers and sellers to know about the market and current news so that well informed decisions can be made now and in the future.
Preparing for Spring
After a long winter, spring is finally right around the corner. The temperatures are starting to inch their way up, and the snow is going to start melting away. If you’re preparing to sell your home this Spring or Summer, now is the perfect time to get started.
Start planning your curb appeal. This is what buyers see first, so make a great first impression. A little landscaping and a fresh coat of paint can give your property the “wow” factor it needs to sell. Although it’s still to early to plant seeds or bulbs, start planning now. Make a list of which plants you want, and where you want to put them. Pay attention to colors, heights and the amount of light each flower type needs.
If you will be painting your home before the sale, start picking out colors. Soft gray, blue or white are the most popular colors, but you don’t have to limit yourself to those choices. However, try to stay away bold bright colors. You want your home to stand out in a good way; you don’t want to stand out for having a gaudily painted property. This is also a good time to start looking for patio furniture, if you have a deck or front porch. This small staging step can make the house feel more inviting.
If you have major landscaping work to complete, or if you will be hiring someone to do the landscaping for you, start preparing now. Find a landscaper you like, and book early. If you will be doing the work yourself, check to make sure your tools are all in good shape. Do any maintenance work that may be needed on your lawn mower, rototiller or other outdoor lawn care equipment. Research local pick-up days for cut shrubbery, sticks and landscaping scraps.
Inside, it’s time to lighten up and put out some brighter colors. Light purples, blues, yellows, greens and other spring colors will give your home a fresh feel. If you are showing your home, make sure your windows are very clean, and letting in lots of light. After a long, gloomy winter, the natural sunlight will make a huge impact on buyers. Don’t use any strong household fragrances– try to stick with clean linen, lightly scented rose or other seasonal scents. Don’t overpower your home, though, and it’s better to not use any scents at all. Some buyers may have allergies or may be super-sensitive to those scents.
Spring is one of the busiest times of the year in real estate. Take advantage of the increase in buyers, and make sure your home makes a great impression. With the help of an experienced Syracuse real estate agent, you could have your home sold, and be into your new home, by summer.
Buyer’s Credit — Eight Weeks Left
The revised and extended Home Buyer’s Credit has eight weeks left. You need to enter into contract to buy the home by April 30th, and close by the end of May, if you want to take advantage of this program.
First time buyers, or buyers who have not owned a home in the past three years, can claim $8,000 for the purchase of a home. Current home owners can claim $6,500. This is a tax credit, meaning that the amount is applied to your 2010 taxes, either reducing the total amount you owe or increasing the amount of your refund. There are income limits, $125,000 for singles or $225,000 for couples. The amount you receive is determined by the price of the home; homes over $800,000 are not eligible. There are bridge loans available for this credit, allowing you to put the money towards your down payment, although you will probably still need to pay for a portion of the down payment on your own.
If you want to take advantage of the buyer’s tax credit, and you haven’t started your search for a new home yet, it’s time to contact a Syracuse real estate agent to get the process started. Don’t wait until the last minute, and then rush to find the perfect home with only a few weeks left. Give yourself the time you need to find the property that best fits your needs. Remember that you also need to have your offer accepted and an initial contract for the purchase of the home signed before time runs out.
This isn’t the only government refund you can take advantage of as a new, or soon to be new, home owner. New York’s Great Appliance Swap-Out, designed to replace older appliances with more efficient models, is still going. This program started a few weeks ago, and offers significant rebates for the purchase of new washers, refrigerators, freezers and dishwashers. The rebate amount for each appliance varies, and dishwashers are only available for a rebate when purchased with other appliances. If you pay to have your current appliances removed and recycled, you can qualify for a larger rebate. This program lasts until the funding runs out. For more information, visit New York’s Great Appliance Swap-Out.
A lot of appliance stores are offering their own discounts or rebates on appliances, further reducing their cost. If you take advantage of both programs, you could be in a new home, with brand new appliances, with a discount worth nearly $10,000.
Simple Fixes for Your New Home
Finding the perfect home is tough. There are a lot of properties available in the Syracuse area right now, so there are a lot to choose from. What happens, though, when you finally find the perfect home, only to find that it’s not quite as perfect as you were hoping for? Do you walk away, or just accept the home as it is? What you need to do is figure out if the problems are fixable. Here are some common problems with simple fixes.
- Fleas, ants or other pest problems. Although this is more common in the warmer summer months, some homes have pest problems year round. The current owner should take care of the problem before you move in, but if they don’t (or if the problem returns) hire a professional exterminator. There are a lot of safe and effective ways to get bugs and rodents out of your home, and to keep them out, and a professional will be able to get it done quickly.
- No air flow. If the property has a closed floor plan, meaning that rooms are closed off with doors, it can be hard to get air moving between rooms. Stuffy rooms are no fun, especially when the weather heats up. Consider installing ceiling fans; it sounds a lot harder than it really is, especially if you already have overhead light fixtures. Alternatively, purchase some floor fans to keep air moving in and between the rooms.
- Dark and dingy. You love the home, but it feels like the bat cave. This is a really, really easy fix. Start by painting the rooms lighter colors, and putting up light-colored curtains that let in the light. Clean the windows, floors, walls and other surfaces really well. If the room is still dark, install extra lighting and use higher-quality light bulbs to give the room a more natural glow.
- Outdated… everything. Maybe the home looks like it fell out of a 1970’s Better Homes and Gardens magazine. Older homes, especially if they were owned by older couples, might be in need of a serious make-over. Tear out the shag carpeting and replace it with something more modern. Hardwood floors give the home a timeless look. Paint the walls and ceilings, and consider replacing any older fixtures. Kitchen cabinets can be transformed by a coat of paint and new handles. If you’re looking at new appliances, you might be able to get some great deals (and rebates) on Energy Star models, thanks to new green government initiatives.
If the home is almost everything you wanted, and there are no huge problems, don’t let a few small issues chase you off. Small problems can be fixed, usually with less of a hassle than you might first assume. Ask your Syracuse real estate agent for advice, or visit a local hardware store for information on how to handle the problem. Chances are, with a little bit of effort, the almost perfect home can be the home of your dreams.
How to Get Top Dollar for your Home
Home prices are down. If you have lived in your home for several years, you might have a hard time getting back what you paid for the property originally. Fortunately, there are some things that you can do to improve the selling price of your property.
Start by cleaning. It sounds basic, but it can make a huge difference. Dust, scrub, wash the windows. Hire someone to come in and deep clean the carpets, and make sure the floors are mopped and waxed, if necessary. Don’t forget to organize cabinets and shelves, and to clear out any clutter and personal items (pictures, refrigerator magnets, ect.).
You also need to clean up the outside of your home. This is a little harder in the winter, but it still needs to be done. Shovel all walkways and clear off the deck. Knock down large icicles. Make sure any outbuildings (garage or storage sheds) are cleaned out and organized. If you have pets, don’t forget to clean up their droppings. Buyers don’t want to see, or step in, the remainder of what Fido had for breakfast. Remember that the outside of the home is the first thing the buyer will see. Make sure their first impression is a good one.
Once everything is clean, it is time to start staging. If cleaning makes your property presentable, staging is what gives it the finishing “wow factor” touch. There are two main parts to staging. The first is that every room has a purpose, and only one purpose. Move the office out of your bedroom, for example. Clear out “storage” rooms and give them a purpose. Put the office in there, or set up a den or spare bedroom. Your goal is to make buyers feel like they could make the property their own.
The second part of staging is that the home has to look neutral. Paint the walls a soft, neutral color, such as light green or an off-white. Take down heavy drapes and put up something lighter that lets in a lot of natural sunlight.
You also need to go through the home and make note of any repairs. Leaky faucet? Loose floorboard? Fix it. Taking care of these tiny problems will make your home look well-cared for. That’s going to assure the buyer that he or she is getting a great property, which can up their offer price.
A buyer will only pay what they think your home is worth. It is up to you to impress them, as soon as they pull up to the property and then again as soon as they step foot inside your home. Prove to a buyer that your home is a great buy, and they’re more likely to pay what the home is worth.