Understanding Home Mortgage Loans

The price of houses keeps rising across the US. Since most require a down payment that is more than a renter can afford, how do you become a home owner when you don’t have the savings to cover the down payment? The answer is a home mortgage to purchase your house.

A home mortgage is different from a home loan. A mortgage is a contact that is required for you to obtain a loan from a banking institution or lending company. The actual loan is the money the lender provides.

In recent years, the types of mortgages for the home that are available to the public have increased dramatically. I remember purchasing my first home when most loans required a twenty percent down payment. Today, loan terms and the rate status are different with home mortgages and is applied depending on the financial situation at the time of the loan. Some mortgages offer better terms when the interest rates are low and others rise with high mortgage rates.

With a fixed rate mortgage, the interest rate remains the same for the duration of the loan. Therefore, your monthly payment remains the same, even when interest rates rise. This type of home mortgage usually extends for a term of 15 or 30 years.

The amortization period for 30-year fixed rate mortgages is longer and the monthly payments are lower. Although you can borrow money on a long-term basis, it comes with a high interest bill and builds equity very slowly.

With a 15-year fixed rate home mortgage, the amortization period is shorter allowing equity to build quickly with interest bills much lower. Expect to pay higher monthly payments with this type of home mortgage loan period.

Adjustable rate home mortgages have lower interest rates. Keep in mind, this low interest rate is only for a short time. Usually after the first year, the new interest rate will rise or fall, depending on the movement of the lending company’s prime rate.

If you’re considering an adjustable rate home mortgage, make sure the interest rate is low enough to be an advantage. Your monthly payment will remain low when the interest rate is low, but when interest rates rise, you may be left with a monthly payment you are unable or unwilling to pay.

Once you’re in the home of your desire, your property begins to accumulate equity with the rise in home prices. If you find yourself in need of quick cash, you can always take out the equity with a home equity loan. The home mortgage rates for home equity loans have always been thought to be higher than the home mortgage rates of other loan types. If you plan to stay in the home for many years, this may be a good option for you, otherwise don’t sacrifice the equity unless you absolutely must.

Once you understand the types of home mortgages that are available, you will need to decide what you must have in your new home and what you consider as an “extra.” You’ll want to find the best interest rate, but you’ll also find that homes in your price range may not include everything you want. So be prepared to negotiate and willing to sacrifice if you find a great deal. Once you’re in your home, you can always upgrade in a few years, using the equity you’ve built up in your property.

Considering Selling Your Home Without a Real Estate Agent? Understand Your Legal Needs!

As real estate has changed over the past few years many people are trying to sell their homes without a real estate agent in order to avoid paying a commission. In the United States you typically pay an agent 6 percent of the sale price in commission. With the price of homes today this number is significant. Especially since so many homes in the US have lost value and many homeowners have found they own a home that is not worth what they originally paid for it.

When not using an agent many residents will seek out the help of FSBO (for sale by owner) organizations and websites. These marketing tools still require a fee but the most it would be is 3 percent of the sale price and many are considerably less.

Real estate agents would also point out that by paying them a fee you are also gaining access to a number of resources that they have available to them. When selling a property agents will also invest in advertising to aid in selling the home.

Many people believe the commission paid to an agent is well worth it. However if you do decide to try and sell your home alone it is important to contact a real estate attorney who can help you navigate the legal aspects selling property.

The legal needs of a home sale include:

Purchase and Sale Agreement: This document is one of the many legal aspects involved when buying and selling property that will require an attorney.

Title Search and Clearing: Before finalizing a real estate agreement you want to be sure the title is clear. A lawyer will do the required title search and make sure the title is clear and the property is ready to be sold.

Litigation: There are instances where property ownership issues arise at the time of a sale. This could be a boundary dispute or eminent domain issue. You will want a qualified attorney working with you if you run into one of these problems.

Condo Development: Condominiums require legal documentation that is unlike any other property. Real estate attorneys are well versed in the legal requirements of condominiums and can help ensure the process moves smoothly.

Document Preparation and Review: If you are buying or selling a home you want to make sure all the documentation is complete and done correctly. It is the job of your real estate attorney to review all deeds, notes and any other documentation that is involved in a home sale.

The investment in a real estate attorney is an important addition to any home selling strategy. Buying or selling something as valuable as a home is a daunting prospect. If you plan to try and do it alone make sure you hire a real estate attorney to help supplement your sale strategy. The legal fees are a small price to pay to avoid a commission.

House Insurance Online Guide: 5 Mistakes You MUST Avoid When Buying Home Insurance

Home insurance is something that most people require. While it is very easy to search for house insurance online, it’s not as easy to actually select a policy. There are plenty of mistakes that people make when selecting coverage. Just one mistake can cost you dearly.

Since it’s probably one of – if not THE – most valuable asset you own, it’s essential that you buy the correct type of insurance for your house.

Here are some huge mistakes you’ll want to avoid when purchasing house insurance online:

Mistake #1: Underinsuring your home

Many people go with the lowest price thinking they will save money every month. They buy only enough insurance to cover the mortgage, or only insure the house for its real estate value, in the gamble that the house won’t burn to the ground or get flooded out.

But that shouldn’t be a gamble you take. What you should do is buy enough coverage so that you will easily be able to rebuild the home. Building a house usually costs more than what it is worth – especially considering the increase in construction prices.

Mistake #2: Not buying contents insurance

Don’t forget about the actual contents INSIDE the home when shopping around for house insurance. Make sure the policy includes your personal belongings. What are you going to do if your favorite, expensive piece of jewelry is stolen? Or all of the furniture, floors, and appliances on the first floor and basement are destroyed in a flood?

Mistake #3: Overestimating your amount of coverage

Don’t just assume that because the monthly payment is high that it covers everything. You must know all of the details of the policy. You could end up filing a claim for nothing. Before making any agreements with an insurance company, make sure you understand what is covered, what is not covered, when you will be allowed to make a claim, and for how much.

Mistake #4: Not setting your deductible correctly

Another common mistake many people make when buying house insurance online is setting their deductible either too low or too high. With too high of a deductible, you could end up with large premium payments. With it too low, you will wind up paying more out of the pocket when something goes wrong.

Mistake #5: Ignoring certain types of weather coverage

Whether you live at a high elevation and don’t think you’ll need flood coverage, or live outside of an area prone to earthquakes and don’t think you’ll need earthquake coverage, you are mistaken. Anything can cause a flood, including a plumbing disaster. Even if it’s not your entire property, you’ll still have some damages to worry about. As for an earthquake, there are states other than California, HI, and Alaska to worry about. There are Faults in other parts of North America as well.

Keep these factors in mind when searching for house insurance online. The best place to start is with Lemonade. It offers a variety of affordable policies for homeowners and renters, and even covers contents. If you’re lucky, you might even be able to find Lemoande sales and coupon offers.

Selling Your Home Privately

When you think about selling your house privately one thing to consider is to decide where to place all of your furniture and anything else in your house. Well this is quite right but selling a house means also to get rid of all the debris, to fix all the damage in the home, to determine the price of your house, and also to make an advertisement in the newspaper.

Selling a house requires long planning and you need to do it before you choose to sell. You need to dispose of your feelings with your house and consider it as a valuable investment. When selling your house the people who would like to purchase it should think of it as their potential new house not as your old house.

Next what you must do when selling your house is dispose of all the clutter in your house. Maybe you are emotionally connected to some of this clutter and I remind you once again you need to get rid of your feelings. Look at all clutter in the closets, garage, attic, and basement. You do not want the purchaser to come to see the clutter in these places.

And then you really need to fix all the damage before you attempt to sell. But let me inform you, fixing the damages when selling a house does not mean you need to do something expensive for example renovating your property. You have to save your cash to purchase your new house or to get a new loan. Checking the light, water, closet and bathroom is an excellent thing to do before selling your house privately. Check the flooring, walls, ceilings, doors and windows before you sell.

Maybe the hard thing to do when selling your house privately is to determine the price of your house. Do not set your selling price too high when selling your house privately because it might be tough to find a buyer. And if you lower your price later it may be too late. Selling a house in about six months is a long time and if no one buys your house in this time period the other buyers might think that you will be eager and they will make a cheaper offer. So selling your home requires wise thinking and deep consideration to set the price of your home.

Next thing would be to create an advertisement about your house inside the classifieds. You need to make an interesting but not exaggerating one because folks may think it does not make sense if you made an advertisement like that. And after you advertise your house and there is somebody who is interested in purchasing your house you need to show your house to them. Try not to be home when they arrive to see your house. Keep your home neat and dispose of your kitchen trash. And in the end your house might be sold for the price that you desired.

Are You Prepared, To Sell, Your Home?

For a variety of reasons, and purposes, individuals decide, the time, is right, to relocate, and, thus, sell their existing home. How someone might be prepared, often, makes a significant difference, in the entire process, and this preparation must combine, emotional, financial, introspective/ objective, and the ability to listen, to the professional, real estate agent, you choose, and hire. With that in mind, this article will attempt to briefly consider, review, and discuss, some essential components/ necessities, in preparing to sell your home, and end – up, with the best possible results, with a minimum of hassle, and get the best – available price.

1. Why are you moving?: Consider your reasons, personal needs and objectives, priorities, and purposes, in making this important decision. Are you moving, for financial reasons, personal ones, a combination of both, or some other reason? Either way, you should be seeking, obtaining, the highest available price, in the shortest period of time, with a minimum of stress/ hassle!

2. Getting the house ready/ prepared: Begin with reducing clutter, significantly. Decide what you need, and do not, and sort accordingly. Whatever is unnecessary/ needed, proceed to dispose of, either by giving things away to the needy, etc, and/ or throwing – out! With other clutter, box it up, and put it away, into storage. At the same time, consult with a professional, and reduce the amount and type of furniture, so you are staging, for optimum results. Put the excess stuff, temporarily into storage, also. How about the window coverings/ shades? Do they show, your house, to its best advantage? Objectively examine walls and flaws, and enhance, in an inexpensive, cosmetic manner, by shampooing carpets, cleaning and polishing wood flaws, enhancing tile, etc, thoroughly cleaning the entire house, and painting, with neutral colors, in all appropriate, needed areas. Remember, you only get one chance, to make a quality, first impression!

3. Choosing/ hiring the right real estate agent: What do you seek, in your real estate professional? Have a thorough discussion, and interview, several, so you choose, the individual, best – suited, for you, and your needs! Be certain, you’re on the same – page, with the person, you hire! Beware, you need someone, who will explain his pricing philosophy, and why he believes, you need, to price your house right, from the start!

4. Pricing: Don’t be persuaded to price something high, because, in most cases, houses, obtain their best offers, in the first few weeks, after being put, on the marker, so, price it right, from the start! Make your decision, based on, a Competitive Market Analysis (or CMA).

The better you prepare, the easier the process of selling your home, becomes. A wise homeowner, realizes, the house’s value is usually his single – biggest financial asset, so he, proceeds wisely, and using common sense!