Category: General

55 Years Old – Don’t Buy A House

If you have owned a house and paid off the mortgage over the years you know the first 10 years is almost all interest payments with very little equity.

There is nothing wrong with buying a house as long as you can qualify. That means a good down payment and a steady job. None of that no-down-payment nonsense. The buyer must be serious about making those monthly mortgage payments and have a good job. Banks are checking these days.

The financial community in the recent past has been required to make mortgages for those who did not qualify with no down payments and had no serious intention of paying if it became economically uncomfortable. It is too easy to walk away.

The true cost of home ownership is not just the monthly mortgage payment. In a new house all the appliances, plumbing, roof, pool equipment, window frames, etc., etc., everything has an estimated life expectancy after which they need to be replaced.

Buying an older home means all of the above will occur sooner. Replace or repair can be expensive.

The true cost of keeping the house is the mortgage payment plus upkeep. Oh and let’s not forget taxes. Then there is a little thing called insurance that is required by the mortgage holder.

The industry calls it PITI = principle, interest, taxes and insurance. Depending upon the length of time of the mortgage and whatever your down payment was it normally comes out 10% annually of the selling price divided by 12 or 1% of the selling price each month.

If the house cost $200,000 that figures about or close to $2,000 per month.

If you are 55 years old do you want to take on that obligation? Wouldn’t it be smarter to rent? If the same quality home can be rented for $1,200 per month the renter could save the difference of $800 each month and in 10 years at retirement have $96,000 plus interest. I can guarantee he would not have that in home equity if he bought the house when he was 55.

Furthermore renters pay much less for rental insurance and have the ability to move to a new location any time. Renters do not have to put on a new roof or replace an old hot water heater. No major upkeep out of pocket expense.

How about a 6 month rental in Canada for the Summer and 6 months in Florida, Mexico or Dominican Republic for the Winter? The only extra would be travel expenses.

With so many rentals available the foreclosure prices are not yet a great buy. If a person wishes to buy there are yet about 4,000,000 more distressed properties to hit the market in the next 2 years. Prices will be even lower than today.

Do the numbers before you buy.…

Reverse Mortgages – What Does the Term Principal Limit Mean?

When explaining a reverse mortgage to a senior homeowner, one of the most important terms a reverse mortgage loan officer will discuss is the “Principal Limit.”

What is the Principal Limit and why is it important?

The Principal Limit (PL) is the gross amount of money the lender is willing to lend to the borrower of a Home Equity Conversion Mortgage or HECM reverse mortgage, based on a formula derived from Congressional legislation and implemented by the Department of Housing and Urban Development (HUD) and using the following three criteria: 

  • The lower of the Maximum Claim Limit or the Federal Housing Administration (FHA) appraised value of the home;
  • The age of the youngest borrower (must be 62 or older);
  • The current expected interest rate (based on the current 10 year London Interbank Offered Rate, or LIBOR rate, plus a stated margin for the adjustable rate HECM and based on the current fixed interest rate for the fixed rate reverse mortgage).

The three listed criteria affect the PL in the following ways:

  • The higher the value of the home (up to the maximum claim limit of $625,500) the higher the amount of the PL will be;
  • The older the youngest borrower (age is always based on the youngest borrower’s age, not a blending of multiple borrowers’ ages) the higher the amount of the PL will be;
  • And, conversely, the higher the current expected interest rate, the lower the amount of the PL will be.

The reason potential borrowers should become familiar with the term Principal Limit and what it means is because it is from this cash figure that all fees and set asides will be subtracted in order to arrive at the maximum cash or loan proceeds available to the borrower.

Congress Plans to Lower the Principal Limit

Congress lowered the Principal Limit for the fiscal year 2010 signifantly to make up for a perceived budget shortfall of approximately $798 million for HECM reverse mortgages put in place within that fiscal year. HUD has announced that for the fiscal year 2011 there will likely be decreases in the Principal Limit as well. The 2011 year begins in October 2010 for budgetary purposes.

 Until the budget bill has made it through the joint Senate and House committee, been voted on and signed, we do not know what the exact amount of the cut in the principal limit will be. Senior homeowners who have investigated HECM reverse mortgages prior to October 1, 2010 should contact a reverse mortgage lender to learn how the decreases in Principal Limits could impact  them personally if they pursue a reverse mortgage.…

Advantages of Legal Mortgage Modification Programs

If you are still confused about what legal mortgage modification programs are, it can be easily spelt out as a blessing in disguise. This is a once in a lifetime opportunity coming knocking on your door and guess what it might be the one that can help you stay in your same house without facing the dramatic consequences of foreclosure. Let us have a look at the various advantages of opting for legal mortgage modification program or the loan modification program:

o    Legal mortgage modification programs have been allowed by the government to allow those crushed under the huge debt of repayment of home loans to be able to repay them and keep the house as well. This program will help you to reduce your monthly payments which mean getting a huge burden off your head.

o    Fix your adjustable rate with proper negotiations with your lender. A loan modification program is designed to prevent your from defaulting your payments any further by fixing a rate as per your capability to repay.

o    Lowering your interest rate is a big bonus of opting for legal mortgage modification program. It will help you to get the same loan from the lender at better terms and conditions.

o    Reduce your loan balance by choosing the legal mortgage modification program. This program can negotiate a reduction in the lump sum amount that you need to repay apart from the fall in interest rates.

o    In cases where there are many default payments being made that have attracted negatively accrued interest, you can get these waived off by joining the legal mortgage modification program.

o    A very good thing coming out of joining the program is that it will help to re-amortize loan to include past due payments.

o    You can get some extensions grant regarding your payments by joining the program. The lender will be also more submissive when you approach him this way.

o    Loan modification helps you as well as your lender to save lots of money involved in the process of foreclosure. In fact, the amount of these proceedings is so high at times that even your lender would prefer to avoid foreclosures at any cost.

o    Loan modification does not involve any other costs. This is a huge advantage over re-financing option and also for those in dire needs; this is the only workable option at times.

o    Opting for loan modification will not affect your credit scores negatively unlike in the case of facing a foreclosure.  In short, it will help the borrower to keep his credit record intact.

o    Finally it all goes down to the wire and you get to save your home. This in fact is the biggest advantage of opting for legal mortgage modification program.

Loan modification reviews show that there is absolutely no reason for you to not opt for this tremendously successful program. It will help you to get a substantial decrease in the amount of interest you need to pay over …

Swimming Pool Dreaming

When I was young, I always dream of possessing a gorgeous swimming pool house in our house. After your distinct pool construction website is selected, you may that this helpt to drive the pool style. Great lens on accessories for swimming pools or just water in common, enjoyed browsing these items tonight, thank you. Pools that are oval-shaped fit in the basic category of rectangular pools (which themselves often have rounded edges for a softer appear). Hubby built our deck the same height as the pool, with the planks of the deck fitting snuggly beneath the lip of the swimming pool’s prime rail. That supplies ready access to the property and makes it less complicated to bring meals and drinks out and to clean up afterwards. If you are just organizing on swimming laps you’ll probably want a lap pool (something more than 10m in length is advisable). More than water or integrated into your garden path, you can not go incorrect with wooden garden bridges. The homeowner can be held responsible for injuries triggered in their pool by neighbors, or friends.

How you heat, clean, filter and sustain your extension de maison is an further expense to take into account. Our Swimming Pool scope of work includes, Civil Performs, Filtration Works, Electrical Performs, Plumbing Works, and Below Water Lighting Method. There are a range of safety measures which users can take advantage of in order to add an added measure of protection, including alarms, fences, and pool covers. No matter whether home owners want to convert their classic swimming pools in Hudson Valley to a salt-primarily based pool, or just build 1 from scratch, there will be no regrets with salt water pools. It is mentioned that you should not super chlorinate your pool but you can at night and stay out of the pool for the entire evening. I utilized to get my pool cleaned by the employees from Ferarri Pools every single month to guarantee that youngsters are secure.

Securing a agrandissement maison bois cover helps to guarantees not only security for men and women, but also protection against the elements of nature. Summer time time pool parties or a late evening swim is constantly enjoyable when you own your personal pool. It’s also worth checking out a French-common pool alarm (from about £500), which protects the perimeter of the pool employing infra-red technologies — a bit like a burglar alarm. Filters require to be backwashed (and at times disassembled and cleaned) and if you live in snow country, pools need to be winterized, covered, and the like – and the approach reversed in the Spring. Your swimming pool is a lengthy term investment and likewise you should appear at each the security of your gate and its corresponding lock but also look as it as a decorative element for your back yard pleasure.

If feasible, it is much far better to location swimming pools at the aspect of a yard rather than straight in the rear. …

Mortgage Pay Off Trap – Why the First Five Years of Your Mortgage is Set to Work Against You

The first 5 years of your mortgage is the most critical. The general rule of thumb is that you spend at least 5 times more in principal than interest. You can run the numbers for yourself at http://www.bankrate.com

The banks’ hope you won’t break free from this cycle and have designed the mortgage tables to trap you into paying interest for a longer period of time.

To get ahead of your mortgage…

…it is important you have a basic understanding of your mortgage amortization schedule so that the banks don’t take advantage of you and suck you into a lifetime of payments.

HUH!

I know this may sound strange but nothing in life is constant.

Chances are at some point you will move, need to borrow money from your mortgage, pay for the kids education or take out a reverse mortgage in retirement. Knowing how your mortgage works will help you make those important financial decisions.

Let’s take a closer look at an example.

For a $334,000 mortgage at a 6.3% interest rate you will end up paying approximately $774,252.88 in repayments over 30 years.

You will spend $410,252.88 in interest and $334,000 in principal.

That sounds pretty fair right?

At approximately year 21, you will pay off 50% of your mortgage. So in the last ten years you will still owe $167,000.

Can you see what going on?

For the 1st 20 years you are working for the bank. Most of your hard-earned paycheck goes towards interest.

Which sucks!

Let’s take a closer look at the first 5 years of your amortization schedule. You will notice that you spend $22,068.33 in principal and $101,973.82 in interest.

Out of a total repayment of $124,042.15, you would pay approximately 82% in mortgage interest as compared to principal.

This made me feel sick when I found about this for my mortgage.

So where did it leave me and what does this mean to you?

You really start making a small dent in your mortgage after the first 8 years.

Please don’t take my word for this. You can go directly to http://www.bankrate.com and check this for yourself if your mortgage balance has changed. Pay close attention to your outstanding balance and how much of your monthly repayments are applied to interest at this point.

At the year 21 mark of your monthly mortgage payments, more of your money will go towards principal than interest. Your hard-earned paycheck would finally begin to work for you.

There are two key numbers to understand when dealing with your mortgage.

  • The first 5 years, where you would typically pay five times more in interest than principal, is the first key milestone.
  • The second key point is at year 21 when you still owe at least 50 percent of your mortgage principal.

This is interesting to know that at the 21 year mark, you pay less in interest and in the last 10 years you get very little to almost no tax deductions for your mortgage interest.…

Heating and Cooling Your Log Home

Needless to say, our forefathers didn’t worry too much about heating their log cabins. Big fireplaces had no problem warming up the one or two rooms they lived in. Of course now that log homes are family-sized, people often have the impression that there is something different about how they are heated, and the good news is that a standard system will work as well in a log home as a traditional structure.

Almost all log homes are built with at least one fireplace. Initially, we thought that our beautiful soapstone woodstove would heat the whole house, and we would use our forced-air propane heat as a backup. Alas, we were all wrong. Because we have a cathedral ceiling with a big loft, the heat from the stove goes directly upstairs, requiring two ceiling fans to recirculate the warm air. We expected this, but we also thought the heat would expand sideways into the rest of the open floor space (dining room and kitchen). Not on your life! Even sitting on the couch about 15 feet from the stove, I need a coverlet. I’m uncomfortably chilly in the kitchen. I think that if we had a regular ceiling, the heat might have gone where we expected it, but the volume of the cathedral ceiling threw off our calculations. Also, the soapstone stove is designed to be run 24/7, and because we both work for a living, the stove doesn’t get fired up until the evening. This woodstove needs to be heated up slowly at the risk of cracking the stone, so by the time it’s really cooking we’re ready for bed.

Old-fashioned fireplaces traditionally sucked all the warm air out of the room, but modern designs are more efficient at recirculating the heat. The most energy-efficient fireplace is built in the center of the house, so the stack heat is not lost to the outside. Outside stacks can create back drafts if the fire is extinguished, making a new fire more difficult to light. If you are planning multiple fireplaces, putting two of them back-to-back (facing adjoining rooms) will give you the opportunity to build one chimney with two flues. Or you could put a fireplace above your furnace, again allowing two flues in the same chimney. A direct-vent fireplace will eliminate the chimney, but you’ll have to figure out how to hide the vent on the outside wall. Or, if you use a wood-stove, you could run the pipe through the wall and straight up the outside, building a box around the pipe to simulate a chimney. Depending on the look you want, you may want to leave the pipe inside the room and send it through the roof. This will give more heat.

It’s a good idea to consider your heating and air-conditioning needs early in the design phase. Although log homes are naturally energy-efficient, it’s not wise to skimp on your system. You may be able to heat your whole house with a huge fireplace or wood …

New Real Estate Agent Training – Your Circle Of Influence

Every new agent has heard the admonition they absolutely must contact everyone in their circle of influence when they start out. This is certainly good advice because when you are just starting out, you are going to have a tough time getting clients. You will not have past clients to recommend you, signs around town with your name on them, or print ads displaying your listings. All of these methods, and many more, combine to bring a constant stream of clients once you have been in business a number of years.

Because none of these are available to you, you will have to work with what you have got. And what you have got is a vast collection of friends, relatives, and acquaintances you can look to for your first deal. This is your circle of influence (COI).

So, where to begin? One of the first things you will want to do is begin compiling your contact list. The list should include everyone listed above and anyone else you can think of. Do not forget past co-workers, people you went to school with, and casual acquaintances you know from your bank, the grocery store, the dry cleaners, etc. Make sure to note as much information about each of them as you can. You will want their name, address, phone numbers, birthday and anniversary dates, and any other information you want to include.

A standard tool for agents, and one you really cannot do without, is some type of contact manager software. There are many different choices on the market and they range in price from free to several hundred dollars. There are even packages where you pay a subscription fee every month.

You may be tempted to try one of the free or low-end packages but you should consider this carefully. A well-known problem with this type of software is the malicious code that often comes with it. This can include spyware, adware, malware, and any number of viruses.

You will be better off if you go with one of the mid-priced packages that allow contact information, expense and other custom reports, letter and flyer management, and can be upgraded in the future. You will want to start using any package you go with as soon as possible.

If you want to start making some money before making another purchase, just use the Mail Merge feature in Microsoft Word. You will be limited to basic name and address information but this can help you address your letters for mailing. Make sure you handwrite the address on the outside of the envelope. This helps separate your letter from the junk mail everyone receives. Your first letter should announce your new broker affiliation, and do not forget to include a few business cards.

Something you should keep in mind whenever you are mailing anything is that you can improve the response immensely if you follow this, or any other, mailing with a personal phone call or visit. In fact, you should make …

EOS Flameless Lighter In San Diego, California, United States

Pre-salesIf you have any concerns just before making a obtain, chat with our online sales to get more information. There are several different brands of usb lighter WIFI antennas and the price tag variety is varied as are the capabilities. The dilemma with the Plazma Lighter is that its pricing is substantially larger than the pricing we’ve observed from other electric arc lighters sold on the internet. Vector® Thermoelectric Portable Meals Cooler/Warmer Chests, cool to 40° under outdoors temperature, warm to approximately 130° F, 9-foot cord plugs into lighter plug. We are the only manufacturer of electric lighters in the globe to offer you a restricted Lifetime Warranty and 30 day income back assure. Lighters developed for beginning barbecues or fireplaces often use these ignition approaches. Zippo American Flag Lighters is a top quality windproof lighter, but its value is higher.

Generic Car Charger for Nokia N91, N90, N80, 770, 7370, 6282, 6265i, 6165i, 6155i, 6126, 6103, 6102i, 6102, 6101, 3155i. Tesla Coil windproof lighters always come with a USB rechargeable battery and even a cell telephone charger can be used for charging this lighter. Replacing a cigarette lighter socket with a 12V USB port is a fairly simple operation, but you could have problems with match and finish. When it comes to candle lighters, there truly is no lighter like the ArcLighter Candle Lighter.flameless lighters,usb lighter

This is just an electronic resistive strategy, though consider platinum would perform fine and not oxidize as fast as a spring. These candles never have an open flame, but rather are powered by a electric battery and usually include LEDs as the light. This is a quite standard and easy to use lighter and may be a single of the best electric lighters available. The CIG-SS Wall mounted Flameless Lighter homes the quickly lighting element inside the tamperproof stainless steel enclosure. When you get an Ozilite no flame lighter, you get two spare lengthy lasting elements, providing you a lifetime of protected cigarette lighting. As it can be recharged, you never want to be concerned about it running out either, as long as you bear in mind to plug it in making use of a USB port. Diverse lighters can be smothered like a birthday flame, even though the Zippo is tough to blow ou you can hurl a Zippo underhand like a softball and it will even now be lit when it hits the ground.

Charging with the included USB cable is easy, and I don’t have to be concerned about lighter fluid ever again. I would suggest obtaining the USB MP3 FM transmitter due to the fact it will be simpler for you to connect to storage devices such as thumb drive, laptop or even the MP3 player. As matches , lighters, and other heat sources are the leading causes of fire deaths for young children, 11 several jurisdictions, such as the EU, 12 have prohibited the marketing of novelty or non-kid resistant lighters. Charge the ArcLighter Candle Lighter or Impulse Pocket Lighter …

Host a Great Open House

If you are in the real estate business then you know that an open house is one of the most important parts of the home buying process. Whether you have run through a hundred open houses or you are just planning your first, there are always a few best practices that you can follow to ensure that your open house is a memorable one, one that leads to a sale.

The first thing that you want to do is make sure that you have the home looking pristine. Be sure to give it a quick run through before you host the open house. If there are any areas that are noticeably dirty, take the extra time to clean them up. Ideally, you should be able to clean the house before even scheduling the open house, but taking the time to have one last check before the date is something that every experienced real estate agent does.

Before your open house, you will also want to advertise the event. The good news is that you can advertise through anything thanks to modern day technology. Thanks to the internet, you can reach much more people than you even imagined. Take to social media and get the word out among your friends. If you have a professional social media page, then you can send the information out to your followers as well. Social media and the internet has quickly replaced other traditional methods of advertising.

Finally, you may want to leave a parting gift for everyone that stops in for a visit. Maybe you can slip your business card in with a coupon to Athleta. You could possibly partner with local merchants and vendors to have them offer deals that you can pass on to visitors. Giving gifts to those who come in isn’t something that every agent does, but it is a quick way for you to leave an impression. If you can do this in an affordable manner, the better off you will be, and the better relationships you will be able to build with both the community and prospective buyers.

Open houses are a great opportunity to showcase your talent as a realtor. Follow a few simple tips and you will build great connections and potential hit the sale that you need.…

Buying Vs Renting: When to Purchase a Home and When to Lease

Buying your initial house can indeed be an outstanding milestone in your existence. In line with this, you may well experience a combination of a lot of emotions like fulfillment, joy but at the exact time, there is nervousness that may well impair judgement. You experience anxious about this huge determination that you have to make, most likely the major monetary determination in your existence. And one of the most typical inquiries you have to facial area is – are you likely to rent or buy? Allow us focus on about getting vs. leasing in this post.

In advance of you arrive up with any even further determination about shifting on your own, you have to request oneself, is it time that you buy your own property or are you much better off leasing a house?

When to rent?

Residing solo? Renting a house could possibly be more acceptable for you. Residing by yourself in a huge property may well be a bit too considerably – too considerably room and too considerably perform or expense for the upkeep. If you do not have the income for a down payment and all the prices of proudly owning a property then leasing is most likely more sensible. Also, if you are concerned about work security then this is a indicator to maybe keep on leasing for the instant. Feel of the effect to you and your relatives if you resolved to buy a property and then drop your work just after handful of months.

How can you manage to spend for the mortgage? Do you need to have to rent a room or portion of the property to make it perform? These concerns are incredibly significant prior to you arrive up with your last determination.

Do not hurry in to getting a property most especially if you are not economically and mentally prepared. There is nothing wrong with leasing initial. Remaining simple will give you more gains in the extensive operate. Most of all, your REALTOR® is a source of important details to you as a initial time house consumer.

When to buy?

Now, when is the great time to buy your property? One primary factor to that is when you are economically secure. And when we say economically secure it usually means that you have cash for at least a 5% down payment for the new property, a long lasting and secure work and probably a savings to provide as your back again-up program, should you need to have to repair service or renovate the house. Also, you have to try to remember that it does not conclusion in shelling out the down payment you also have to spend for other prices in getting your own property like spending budget for the home furnishings, utilities and of course the monthly mortgage rate. Throughout the buying course of action you will be writing cheques to house inspectors, insurance coverage policies and attorneys.

Acquiring a relatives could be a different factor that will …