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.

Hard Money Lenders of California

There is a strong demand for housing in California. That is the good news. The poor news is that few can afford it. The market has rocketed away from control leaving investors to ponder other solutions. Many are turning to hard money lenders.

The demand for housing in California.

The California Association of Realtors says that essentially all of California is rocking insane by now. The demand for houses has stretched to bizarre levels. That is the good news because it implies that if you are an agent working in that area you have plenty of potential clients who want your services.

And the bad? Few people can buy most of the houses that are currently on the Californian market. They are unaffordable.

The joke in the real estate industry is that if you want to buy a house in California – sure, you can buy a box. Comparatively recently, the LA real estate news traveled the nation comparing property results for $100,000 dollars. In suburban Detroit, you could buy a castle for that amount; in Ft. Lauderville, an orange villa; in Chicago, a stunning condominium near the Lake; and in Manhattan, 200 ft. of earth. California was no better with maybe a small plot that you could rent from an honest landlord with plumbing and utilities included.

Of all areas in California, San Francisco is the nation’s most expensive place to buy with a median sale price of $1,312,500, according to the California Association of Realtors (CAR). The rest of ‘this golden city’ is not much better. In Los Angeles, the median home price is $486,310. But home buyers who want to live in L.A.’s most desirable areas will pay much more, and inventory is tight.

And then you’ll need a loan…

Government-backed conforming loans are capped at $625,500 in high-priced areas. So unless investors can make a substantial down payment to qualify for a Fannie Mae, Freddie Mac, or FHA loan, the only way many Californians can finance their mortgage will be to consider other alternatives.

One of these would be visiting hard money lenders

Hard money lenders – what are they?

More than half of hard money loans is originated and closed in California, and the numbers of hard money lenders who live and bid from this pricey city is growing all the time.

Hard money lenders are independent lenders who dole out their own money to people who need a loan. The money is contingent on the value of the collateral rather than the borrower’s credit history or FICO score. Other advantages are that the process is simple and smooth, the environment personal, the lending schedule and terms flexible; and the process as fast as two days. (Some borrowers actually receive same day turnover). Minuses include low loan-to-value ratio (as little as 50% to 60%) which means that your property may actually be valued at far less than it is. And you have to repay at high interest rates. If you fail to repay, you risk losing your property. For these reasons, many consider applying for hard loans only if they absolutely need them and are unable to get the loan through traditional means. They then apply if they need the loan for short-term purposes and are confident that they can repay.

Hard money lenders in California

Prepare for hours of browsing. Hard money lenders in California are a group unto their own. In fact, many directories on hard lenders add an extra page for lenders in California. You’ll find as many as 200 or more if you take the time to research and you use various engines. Lenders find California to be an exciting market – no wonder with its high prices and spiking demand! The advantage for you is that you’ll find reasonably competitive prices. Be prepared to negotiate about schedules, time, and fees. And always research credibility. Lenders in California should be licensed through a Californian regulatory agency and through the National Mortgage Licensing System (NMLS).

Aside from that, draw up a business plan that will outline how you want to use the money and decide what loan you want. Lenders service different clients and provide diverse loans.

The short of it is this…

The costs of housing in California are notoriously high driving professionals to consider buying instead and to look for loans to facilitate the process. The biggest challenge for these borrowers isn’t income, but having enough money for the exorbitant down payment. (This can sometimes as much as 20%). Alternatives such as an interim hard loan could come in useful; many borrowers tend to hook a bank loan later on to check off repayments. You’ll want a wise and trustworthy broker who can help you make one of the most important choices of your life.

Hard money lenders in California could be your answer.

Lowes Garage Door Installation Cost Will Save You Money

Lowes Home Improvement stores are well known for their low prices and quality products. If you own a home you probably have used Lowes to find the products you need to improve, maintain or repair it.

Searching for and finding the right garage doors for your home can be a nightmare even if you use the Internet to conduct your research. The best garage doors available are frequently the most expensive however you should not use garage doors pricing alone to make your selection.

Your selection process should carefully consider installation costs, construction materials, removal of any existing door, type of garage door opener and warranty. Lowes garage doors installation costs are considered one of the best buys on the market today. Lowes installers are considered and called partners and they must meet Lowes strict standards. Every installation is rated by the purchaser to assure that customers are receiving the quality services they are paying for.

Lowes garage doors installation costs range from as low as $199 to $599 depending on the size of the door and where the door is being installed. Obviously installing an oversize garage door will require more skill and time. If you need to install a garage door opener as part of your installation you can expect additional cost. Over all the, Lowes garage door installation cost is slightly lower than the average installation costs.

As an alternative to purchasing your garage door from Lowes you should consider comparing prices and services with Home Depot. Both Home Depot and Lowes sell quality garage doors. Just as with Lowes Home Depot provides garage door installation services that are comparable. In addition you have the option of installing a garage door yourself. Both home improvement stores will assist you in your efforts. The downside of self installation is the time it takes to complete the installation and the cost of disposing the old door which normally part of any professional installation cost. Self installation will also require you to have the assistance of at least one helper.

We feel that the Lowes garage door installation cost is very reasonable and provides the home owner the peace of mind knowing that the installation was done correctly. Occasionally installation cost can be included in the purchase price of your garage door. Be sure to check with you Lowes sales representative on the latest sales offers.

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.