To refinance a mortgage means to pay off your existing loan and replace it with a new one.
There are many reasons why homeowners opt to refinance, from obtaining a lower interest rate, to shortening the term of the loan, to switching mortgage loan types, to tapping into home equity.
Each has its considerations.
Lower Your Mortgage Rate
Among the best reasons to refinance is to get access to lower mortgage rates. There is no “rule of thumb” that says how far rates should drop for a refinance to be sensible. Compare your closing costs to your monthly savings, and determine whether the math makes sense for your situation.
Shorten Your Loan Term
Refinancing your 30-year fixed rate mortgage to a 20-year fixed rate or a 15-year fixed rate is a sensible way to reduce your long-term mortgage costs, and to own your home sooner. As a bonus, with mortgage rates currently near all-time lows, an increase to your monthly payment from a shorter loan term may be negligible.
Convert ARM To Fixed Rate Mortgage
Homeowners with adjustable-rate mortgages may want the comfort of a fixed-rate payment. Mortgage rates for fixed-rate mortgages are often higher than for comparable ARMs so be prepared to pay more to your lender each month.
Access Equity For Projects, Debts, Or Other Reasons
Called a “cash out” refinance, homeowners can sometimes use home equity to retire debts, pay for renovations, or use for other purposes including education costs and retirement. Lenders place restrictions on loans of this type. A refinanced home loan can help you reach specific financial goals or just put extra cash in your pocket each month – just make sure that there’s a clear benefit to you.
Paying large closing costs for small monthly savings or negligible long-term benefit should be avoided. Many lenders offer low- or no-closing costs options for refinancing. Be sure to ask about it.
Real estate investments are still going strong and will probably continue to be a popular method of financial gain into the future.
Real estate is solid. It is a tangible product that is attractive to both beginning investors and experienced pros. The most important part of getting started in real estate investing is knowing what you’re getting into and what to watch out for.
Here are 4 top tips from real estate investment professionals:
Understand The Realities
Real estate investment, like any form of investment, is risky. Do not use money you cannot afford to lose. Careful study, understanding the market, and practice help alleviate a lot of the risks but things happen in the best of situations so don’t play with what you can’t afford to lose.
Research Is A Constant
Research in real estate investment isn’t something you do once. Research is constant. It is a daily part of your efforts and should always be at the forefront of your mind. From changing banking methods to market changes, researching and learning must be ongoing to be a successful real estate investor.
Know The Property
Research isn’t limited to financing and the real estate market. You need to thoroughly investigate each property before you buy. Fill out an investment worksheet to see if all the costs associated with the purchase will allow a satisfying profit.
Learn About Personal Protection
Taking risks with the money you have set aside for investment is one thing. Taking risks with your family’s savings, property, and other assets is another. Consider starting an LLC. You can choose from a single LLC to cover all of your real estate holdings, or having a separate LLC for each property purchased.
When people purchase their home, one of their common requests is “plenty of light.” And for good reason! This is a critical factor for enjoying your home, and when designing your interior, you should pay special attention to just that: your sources of light.
See them not only as a way to brighten up your room, but also as an opportunity to infuse your home with a fashionable design and aesthetic appeal. You’d be surprised at how much lighting can dramatically enhance any given room in your home.
Here are our six favorite lighting installations that are bound to give you and your home that “wow” factor.
The Chandelier For Pretty Places
Chandeliers provide arguably the prettiest and most classic fixtures possible, and they are a growing trend right now in interior design.
Acting as the “centerpiece” if you will to any room, chandeliers offer the perfect amount of brilliance and light, while instantly multiplying the room’s feeling of warmth and appeal. Create a pretty place you won’t be able to resist; hang a modern crystal chandelier above your dining room table or a bright pendant chandelier in your master bedroom.
Quirky and Contemporary Ceiling Lights
To achieve the same sense of fashion-forward style for your home’s decor but in a more practical way for the tall folks, consider a close-to-ceiling light fixture in its many different quirky and contemporary styles. You can also opt for the bright, patterned pendant style, or get a wide crystal embellished highlight for your ceiling lights.
The Demure Brilliance: Recessed Spot Lighting
For the most demure, nearly hidden brilliance, opt for recessed spot lighting. These light installations typically offer dimmer switches and provide the perfect ambiance for any space, especially kitchens, living rooms, and dining rooms.
Perfect Pendants For Closer Lighting
Perfect hanging pendants come in many different shapes, sizes, and colors, and can be hung in a row for horizontal spaces like your kitchen’s eating bar. They can also be hung at varying lengths to achieve a tasteful fashion statement.
Instant Modernity: Arc Floor Lamp
The arc floor lamp, which typically rests in one corner of the room and reaches over in an arch for center lighting in a sitting area, is a growing trend in home decor. You can find these floor lamps in virtually any style, ranging from textured, retro versions to sleek, contemporary styles.
Matching Shades: Table Lamps
To tie your room together in its design aesthetic, the most perfect – and most simple – option may be matching table lamps. Perfect for your side tables in your living room, or the nightstands on either side of your bed in your master bedroom, matching shades can be a quick fix to a room that needs more brilliance and a more cohesive look.
Whether you already have plenty of natural light flooding your home, you can never have enough brilliance to rely on when the sun goes down. So take a look at these six light installations that will instantly enhance your living space, and infuse your home with the light it deserves.
When it comes to selling your home and getting the full selling price you want, there are certain tactics and methods you can employ to ensure that this wish becomes a reality.
Avoiding the commonly made mistakes that end up lowering the value of your home and discouraging people from viewing it is ultimately the key in getting top dollar, as well carrying out the showings and sale of your home in a professional manner.
Listen to the professionals, and make sure you employ these real estate sale methods to get your desired number on your home sale.
Listing Tactic: Adding A Buffer
Always dependent on the type of market you find yourself in, a common and successful tactic in getting the price you really want for your home is adding a buffer on the list price.
This means that if you want $500,000 for your home, you should list your home somewhere around $510,000 to $520,000 to allow for some negotiating room. Even if you’d prefer not to negotiate, the majority of buyers will always assume that you have room to come down on the price, and will put in their offers accordingly.
Overpricing: Avoid At All Costs
With that being said, you don’t want to overprice your home too much so as to discourage potential buyers from looking at it, or to put your home outside of a financial bracket. Make sure you speak to your trusted real estate advisor on exactly what the right list price should be to obtain your desired value.
Increase Desire: Have Your Home Staged
In order to get the price you want for your home, you need to make a good impression on the prospective buyers. Having your home professionally staged can dramatically increase the amount of interest you receive on your home, perhaps even creating multiple offers – which is the best situation a home seller can be in!
Appeal To Online Shoppers With Professional Photos
With so much of today’s modern real estate shopping happening online, you want to ensure that your home has a strong online presence with professional photos and a digital floor plan available to prospective buyers. Also make sure that all information online is full and complete, and presents your home in the best light possible.
Always Say Yes To Open Houses And Showings
Especially in a hot market, you want to ensure that you leave your home empty for your real estate agent on weekends so that they can hold it open to the public. This is especially important early on in your list date so that the buyers on the market who are ready to make a move can see your house right away.
You should also apply the same importance to showings, and ensure that each showing request is promptly responded to with an easy “yes.”
If you put these tactics into your home selling plan, you will find that it will be much easier to obtain more interest from buyers. And with more interest, it will be much more likely that you will be able to obtain the price you want for your home.
So don’t underestimate the importance of these factors, and discuss them today with your trusted mortgage professional.
Something that the Europeans have been doing for decades has finally made its way over the Atlantic Ocean to North America: the trend is called micro housing, and it’s turned into an entirely new way of living.
With micro housing, we’re beginning to do away with oversize condos and even detached homes, learning to live in a more minimalistic manner and curbing our hoarding habits for good.
The affordability of micro housing is making it possible even for young adults and students to purchase their homes in the city centers across North America. But one must ask, is the micro housing trend good for the globe too?
Sustainability Of Micro Condominiums
Being able to pack a higher number of salable units into one building and lowering the prices to widen the market and encourage young buyers to purchase instead of rent is certainly economically beneficial; but is this trend sustainable and beneficial for the planet too?
As it turns out, the cost of building a micro-apartment structure over a regular sized one has a much lighter footprint on our earth. Micro-housing is a sustainable part of urban design because it is made to be a contributing asset to compact cities across North America, requiring less infrastructure cost, fewer resources, and a smaller environmental impact from shipping to construction to ongoing management and maintenance.
Some micro-buildings even have shared areas like kitchens and lounges; this helps to cut back on building costs even further and lessens air pollution from shipping.
Micro Homes: Are They Green?
Though micro detached homes are also on the rise, they have run into problems with bylaws in certain cities across North America. They may just be the way of the future, though, with the real estate prices in many areas growing out of control. These micro homes are similar to the micro condominium units in their petite sizes, however they typically do not have a standard foundation, instead resting on screw piles that are attached to the ground.
These easy-to-assemble micro homes, though perhaps battling with particular municipalities and their bylaws, offer practical housing that is sustainable too. Green features of these micro homes include the additional options of a composting toilet, solar power energy systems, grey water treatment system and a rainwater collection system.
The Lifestyle Of The Micro-Housing Trend
Another factor that should be taken into consideration when looking at the sustainability of the micro-housing trend in the kind of lifestyle it is promoting. Generally situated in the dense city centers, micro housing encourages a lifestyle that is affordable, thereby attracting residents who will take public transit or be within walking distance to work or school, and lessening the need for the daily use of a vehicle.
Perhaps we’re looking a little too enthusiastically at the future, but as it seems, the micro housing trend is bringing with it all kinds of benefits, both economically and sustainably. A lifestyle and housing solution that finally benefits the planet is always accepted among our modern cities across North America, and soon it may just be the reason to purchase instead of rent, allowing us to walk instead of drive.
For more information on the micro housing trend in your area, call your trusted mortgage advisor today!