Home Loan Advisor Blog https://homeloanadvisor.co The Official Blog Site of Home Loan Advisor Sat, 27 Jan 2018 10:25:57 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.3 5 Reasons to Refinance This Summer https://homeloanadvisor.co/2015/05/26/5-reasons-to-refinance-this-summer/ https://homeloanadvisor.co/2015/05/26/5-reasons-to-refinance-this-summer/#respond Tue, 26 May 2015 19:13:51 +0000 https://www.homeloanadvisor.co/?p=593 Refinancing can be a smart financial move for many homeowners, and this summer is a great time to consider a mortgage refinance!

There are several reasons why you should refinance your mortgage this summer. If you review each consideration, you can refinance for all of the right reasons and avoid major financial problems down the road.

1. Cheaper Mortgage Rate

Most people cannot refinance their mortgage because they don’t have enough equity. If you have an opportunity to decrease your mortgage rate, it’s recommended that you watch and read the news so that you will understand where the rates are in the market.

2. Convert an ARM

Most individuals are no longer pursuing adjustable-rate mortgages because fixed-rate loans are better. They are ditching their adjustable rate mortgages because they are afraid of inflation. A fixed-rate loan is dependable since it gives homeowners a stable rate.

3.  Shorten Your Loan

You should consider refinancing your mortgage this summer if you have a 30-year mortgage. Because interest rates are typically low, you won’t have to pay as much money if you get a 15-year mortgage. You figure out your rate by using a mortgage calculator. If the results are feasible, contact a local mortgage professional to obtain more information about additional steps.

4. Build Equity Quicker

If you currently have high monthly payment because you recently got a salary increase, you can build equity faster by switching to a short loan structure. By building equity quickly, you will save more money on financing fees. Any equity that has built up can be cashed out if you refinance your home. If you need additional cash for bills, this strategy can be quite helpful

5. Credit Score Improvement

If you always make your mortgage payments on time, your credit score has probably improved. If you have a better score, you should take advantage of it by refinancing your mortgage. This strategy will keep your interest fees low while you pay back the loan.

After you decide to refinance

The next step involves hiring a home appraiser because you must determine the value of your property. An appraiser considers a number of factors during the appraisal process, such as the condition on the home. If you make a few simple improvements before you hire an appraiser, you can instantly make your home more valuable.

Before you contact a financial expert this summer, you should review your financial situation carefully. If you have problems paying your monthly mortgage bills, refinancing is a smart move.

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Heating and Plumbing Home Improvements That Add Value to Your Home https://homeloanadvisor.co/2015/03/31/heating-and-plumbing-home-improvements-that-add-value-to-your-home/ https://homeloanadvisor.co/2015/03/31/heating-and-plumbing-home-improvements-that-add-value-to-your-home/#respond Tue, 31 Mar 2015 23:15:45 +0000 https://www.homeloanadvisor.co/?p=587 Your home is your biggest asset, and you have the power to improve its value. While there are many factors regarding your home value that you have no control over, you do have direct control over home improvements that affect the value of your home. Heating and plumbing home improvements are high on the list of ways to add value to your property.

Furnace replacement- Your heating system should be in good working condition and not older than a decade. If your furnace is more than fifteen years old, it may be time to consider replacing it.

A/C systems- In the majority of the country, homeowners want to be cooler in the warmer months. This means that the air conditioning systems should be in good working order. This is especially true in the southern states.

Hot water heaters- This appliance is one of the most important in the entire home because a family greatly relies on them each and every day. If your hot water heater needs to be replaced and you are planning to sell in the near future, a new hot water will definitely impress potential buyers.

Thermostats- Thermostats can greatly affect the comfort and energy efficiency of your home. Older, manually-adjustable thermostats should be replaced with programmable thermostats to improve your home.

Faucets- Both the bathroom and the kitchen faucets can bring an important focal quality as well as add value to your house. They have the power to make a statement in both of these important rooms.

Home improvements have a huge impact on value, regardless of whether or not you are going to sell your home right away. With the right heating and plumbing improvements to your house, you can increase the value and give you an edge over other sellers in your neighborhood.

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Can You Refinance with Bad Credit? https://homeloanadvisor.co/2015/01/06/can-you-refinance-with-bad-credit/ https://homeloanadvisor.co/2015/01/06/can-you-refinance-with-bad-credit/#respond Tue, 06 Jan 2015 20:41:58 +0000 https://www.homeloanadvisor.co/?p=581 Worried couple doing their accounts in the living roomRefinancing a mortgage or home loan can save you a lot of money over the entire life of that particular loan. Although refinancing a mortgage can be tough to accomplish, especially when you have a low credit rating, it is still possible to get it done. Below are some tips to enable you to refinance your mortgage even when you have bad credit.

Do Not Expect Very Low Interest Rates

Even though there are numerous mortgages advertisements in the media and online offering home owners extremely low interest rates, it is not easy to get home loans with such low rates. In any case, the interest rates have continued to rise with time and they are normally reserved for a few pristine borrowers. So if you have bad credit, you can still refinance a mortgage although not at the lowest interest rate in the market.

You Should Have Equity on That Property

In the current market, most lenders might refuse to refinance an existing home loan or mortgage particularly when the borrower owes more on that property than its worth, for instance if the home is under water. Even if the home is not submerged, some banks might not refinance the mortgage just on the basis of the owner having very little equity. This can be attributed to the fact that the new mortgage is made basing on the market value of the property at that particular time. The lesser the equity, the higher the risk.

Consider Loans Issued by the Government

Even if you do not have enough equity in your home, it is still possible to have the mortgage refinanced. It is only those lenders who do conventional mortgages that insist on a lot of equity. However, this is not necessarily the case for those banks that offer government-backed loans. Such loans are normally insured by agencies. To refinance your mortgage with such a loan, you will need a very little amount of equity. Another option would be to seek the FHA Streamline refinance which has lesser restrictions.

Make Your Application Attractive

Bad credit alone may not prevent you from refinancing the mortgage. However if the entire application is questionable then you should be concerned. Always make an effort to offset bad credit by making your application as clean as possible, particularly if you are in need of a conventional loan. Do the proper paperwork and document your income. Provide any required bank records as proof for your savings as this always makes the application attractive to the lender.

Following the above tips will enable you to refinance your mortgage even if you have credit issues!

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Should Baby Boomers Refinance? https://homeloanadvisor.co/2014/11/18/should-baby-boomers-refinance/ https://homeloanadvisor.co/2014/11/18/should-baby-boomers-refinance/#respond Tue, 18 Nov 2014 22:52:09 +0000 https://www.homeloanadvisor.co/?p=577 Between 2015 and 2030, the American population will experience a significant shift, as more than 130 million people will be at least 50 years old. Many of the baby boomers will be retired, which means that a fifth of the population of the country will be at least 65. Based on current trends, that means that more retirees will be renting their homes or still paying off their mortgages than there ever have been before. This could lead to financial hardship, although there is still time to avoid those problems — and refinancing your mortgage could be one way to help.

A recent Harvard study showed that the percentage of people who are 50 or older who still have mortgage debt is growing. Most people see their highest income levels in their late forties, before it starts dwindling on the way to retirement. This means that the cost of housing takes up more and more of income as people who are over 50 get closer to retirement.

Currently, more than 40 percent of people who have a mortgage and are over the age of 65 have to pay at least 30 percent of their income toward the cost of housing. The lower your income in retirement, the more impact you will feel. You’ll have less money for other necessities, including the cost of medical insurance, which can still go up.

So should you refinance if you’re a baby boomer? You should — if it will cut down the total number of dollars you end up paying for your home. Cutting $150 or $200 off your monthly payments might sound good, but if you end up paying $5,000 more over the life of the loan, that doesn’t make any sense from a fiscal point of view. However, if the potential interest rate is so much lower that you would end up paying less money over the total life of the loan, pull the trigger and refinance.

Another option for people who have equity in their homes is a reverse mortgage. There are different types of reverse mortgages, depending on whether you need monthly financial support, a one-time infusion of cash to pay for back taxes or repairs, or if you have a different need. Even if you still have mortgage payments at retirement, if you have built up enough savings during your lifetime, you will have more financial security.

Some ways to maximize your retirement savings include maxing out the employee matching program. Some employers offer retirement account contribution matching, so make sure that you get as much of it as possible. Your retirement contributions reduce the amount of your income that is taxable, so do yourself a favor and contribute. Also, after you turn 50, you can contribute $1,000 more each year to personal IRAs so you can “catch up” from prior years.

To get the best advice about your own situation, talk to a financial advisor. These are major decisions that face you, and they will affect your quality of life, so make sure you get the right information for your family’s needs.

A little research can mean an easy and pleasant refinancing experience while maximizing your money. Home Loan Advisor can analyze your property, current market conditions, local market comps, and other variables in our proprietary algorithm as well as match you with potential lenders!

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Fall Home Improvement Projects https://homeloanadvisor.co/2014/10/22/fall-home-improvement-projects/ https://homeloanadvisor.co/2014/10/22/fall-home-improvement-projects/#respond Wed, 22 Oct 2014 16:47:06 +0000 https://www.homeloanadvisor.co/?p=571 Now that autumn is here, it’s a good idea for homeowners to consider taking on some fall home improvement projects. We’re not talking extreme renovations that involve a lot of monetary input. It’s about the little changes that are made through a few additions and some maintenance tasks. Your fall home improvement project can be done by a contractor but if you have some skills, you can do some of the DIY work.

Maintenance is an essential part of home ownership. Proper maintenance causes the value of your residential real estate property to go higher. If there is notable negligence, the property is bound to go on a decline in the markets.

Gutter inspection and maintenance

Gutters are a vital part of the house and failing to inspect them may lead to a bad winter. If the system is weak, the spikes that hold the gutter in place will fall apart when filled with snow and ice. If you are still using nails, consider replacing them with screws. These will hold the gutter better. Make sure to check for any damages and fix them.

It is also important to clean the gutter by removing all the fallen leaves. A clogged gutter will lead to a lot of headaches and possible damage to your home. Ensure you do this at the end of fall when most trees will have lost their leaves. Consider installing heat tape on the edges of the roof. If you have this or some kind of insulation for the attic, the chances of getting an ice dam are very low.

Window replacement

Windows can be problematic especially as winter approaches. You may have a windy chill within the house or a general lack of efficient utilization of heat. Fall is the perfect time to check out these issues. If need be, you can get a handyman to change out your ineffective window panes for better ones. There are new models that have multiple panes or inert gases between that give better insulation. They will also reduce the costs of the electricity bill. You can also check the fireplace and ensure that it is in working condition. Seal gaps and add insulation to all windows in your house.

Exterior painting

To get the best results when painting your house, you should make it part of your fall project. The temperature is at an optimum; it’s not too cold or hot. The humidity is also very low so it will have minimal effect on the paint work. Take advantage of the moderately warmer days. If you have a wooden surface that might be exposed to the winter conditions, consider a fresh coat of paint on that too.

Roofing

Roofs can be a bit problematic especially if you are considering a complete DIY project. During the dry season, it is hard to tell whether you will have leakages but winter can reveal the worst. Hire a professional to assess any damage and fix it in time for winter weather.

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Mortgage Refinancing Obstacles https://homeloanadvisor.co/2014/10/01/mortgage-refinancing-obstacles/ https://homeloanadvisor.co/2014/10/01/mortgage-refinancing-obstacles/#respond Wed, 01 Oct 2014 21:13:17 +0000 https://www.homeloanadvisor.co/?p=566 Current mortgage rates are still low, so it’s still a great time to refinance! While refinancing is a great option for some homeowners, it’s not as easy for others. Here are some potential refinancing obstacles that you need to keep in mind:

Poor credit

This is one of the most common refinancing barriers. If you intend to refinance, your lender will require you to have a specific credit score. A good score allows you to enjoy good refinancing rates. Most lenders will require you to have a 740 credit score as a minimum requirement. Some may ask for a higher one. The upside is that if you intend to use any of the government-backed loan programs such as FHA or VA loans, you may get refinancing with a lower credit score. There are certain programs that will not take your credit score into consideration but you need to have a minimum credit score of 640 to qualify for most programs.

Underwater mortgage

An underwater mortgage refers to a loan that has a higher balance compared to a home’s free-market value. This kind of situation makes it difficult for you to refinance your home. If you have an underwater mortgage, your only bet is to seek assistance from programs designed for homeowners in your situation. A good example is the Home Affordable Refinance Program (HARP). This program will help you to get financing.

Inadequate income

This is another major obstacle that most homeowners face when they want to refinance their homes. Many people are still trying to recover from the global financial crisis. Some people were forced to take pay cuts to retain their jobs and this means that they now find it difficult to make their mortgage payments. It is important to note that a single missed payment can have an adverse effect on your refinance request. Most of the lenders are only willing to offer refinancing loans to individuals who have demonstrated that they can make regular payments on their mortgages. If you are finding it difficult to make the payments, the lenders will consider you a risk and they will deny your application.

Mortgage insurance

Homeowners who make mortgage insurance payments are less likely to qualify for refinancing. You will be unable to qualify for the Home Affordable Refinance Program if you have this form of insurance. You may still find a lender who is willing to make an exception but it will not be easy.

Jumbo loan

If you have a jumbo loan, it means that your mortgage exceeds the limit that has been put in place by Freddie Mac and Fannie Mae, these are the two agencies that have been authorized to purchase mortgages from lenders. In most counties, this kind of loan is over $417,000. It is difficult to qualify for a jumbo loan because you need to have an excellent credit score and make a bigger down payment. Some lenders are reluctant to offer refinancing for homeowners who have this kind of loans.

If you intend to refinance your home to take advantage of the current mortgage rates, you need to review your situation and determine if any of these obstacles apply in your case before you approach a lender.

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Why You Shouldn’t Wait to Refinance https://homeloanadvisor.co/2014/09/04/why-you-shouldnt-wait-to-refinance/ https://homeloanadvisor.co/2014/09/04/why-you-shouldnt-wait-to-refinance/#respond Thu, 04 Sep 2014 21:45:45 +0000 https://www.homeloanadvisor.co/?p=561 If you have been considering the refinance of your existing home mortgage, you should know that there are a number of reasons why you should refinance your mortgage, many of which will benefit you in the long run. Borrowers with a good credit score can use the refinancing option to get a better rate. Below are some of the reasons why refinancing is a good idea.

Lower mortgage rates

When lower rates are being offered, take advantage of them. Refinancing simply gives you a chance to correct a mistake you might have done by taking a bad mortgage with high rates. You will get an opportunity to reduce the stress you get during hard economic times by getting a better, more manageable loan.

Increase your savings

When you refinance, you will be in a position to save some money because your interest will be lower. This money can be used to pay other bills or be kept aside for future use such as retirement and other long-term investments.

Increase your cash flow

If you refinance your mortgage, it is most likely that you will go for one with a lower monthly payment. With this in mind, it simply means that you will have more money at the end of the month and you can use the amount to reduce the daily financial pressures or improve your investment opportunities for financial stability.

Shorter payment period

You can reduce the years in your mortgage payment period by paying more every month if possible through refinancing. In most cases, paying a loan in the shortest time possible will have financial benefits in the future.

Opportunity to switch

Mortgages are generally available as fixed-rate or adjustable-rate. You will be in one of them and it is Through refinancing, it may be possible to switch from one form of mortgage to another. When interest rates are low, the adjustable rate mortgage is most convenient. When interests are high, the fixed rate makes the better option.

When the rates start going down, you can change from the fixed rate to the adjustable rate through refinancing to get a better deal. It’s best to discuss your particular situation with a mortgage finance professionals to see how refinancing can benefit you!

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Decorating Your Child’s Room https://homeloanadvisor.co/2014/08/11/decorating-your-childs-room/ https://homeloanadvisor.co/2014/08/11/decorating-your-childs-room/#respond Mon, 11 Aug 2014 21:37:47 +0000 https://www.homeloanadvisor.co/?p=554 Do you remember your childhood room? It was probably decorated with cool posters and perhaps painted with vibrant colors. Now your child wants you to decorate their room, but are you up to the task?

Your child’s room plays an important role on how your child grows. If this is your first time with this kind of a project, it may be a daunting task. However, have no fear! We’ve got some tips to help you decorate your child’s room perfectly.

Give the room a theme

It is possible to create a wonderful fantasy world for your child by transforming their room. You can do this by decorating the walls with cartoon characters, animal kingdom posters, or flowers. If you’ve got some creative talent, now’s the time to use it. Little girls might love a room with a garden theme, while little boys may love a superhero theme. The most important thing is to keep in mind the individual tastes of your child in the planning process.

Get creative

With the increased number of paints available today, home painting has gone a notch higher. A child’s room need to be inspiring and should give the child an opportunity to explore the best of his or her abilities. By using decorative paints, you can do this in many ways, whether you bring in the feelings of spring with lively and fresh flowers or you develop an underwater world with SpongeBob or mermaids.

Lighting matters

The lighting in your child’s room changes the way they view his or her room. When you think of the color or decorations to put on the wall, you should also consider the kind of light that would enhance that color and bring the type of effect you desire to have in the room. If you paint the walls using dark colors, you will need to have bright lights that will ensure that the room does not look cramped, especially during the night. Another great idea is to order customized fixtures for the child’s room such as moon, stars, sun, butterflies, and others.

Remember, if you don’t have the knowledge on decorating your child’s room, you can hire a professional to carry out the project for you.

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Benefits of Refinancing https://homeloanadvisor.co/2014/07/17/benefits-of-refinancing/ https://homeloanadvisor.co/2014/07/17/benefits-of-refinancing/#respond Thu, 17 Jul 2014 22:33:32 +0000 https://www.homeloanadvisor.co/?p=548 Are you planning to refinance your mortgage? If so, it’s a great decision because there are a wide range of benefits you will get from doing so. There are times when it is advisable to do the refinancing, but you need to understand clearly all the financial objectives and keep them in mind. Here are the benefits you can experience when refinancing your mortgage:

Reduce your monthly payment

If the mortgage rate is currently lower that when the home was financed, the monthly payment will reduce if you decide to refinance the mortgage. This means you get extra money to spend for other expenses at home. In most cases, the entire closing costs of the initial loan can be put into a new loan, meaning that you will end up spending less money from your pocket. Even if the interest rate goes down by a half of a percent, this can make a great difference that you will be able to notice.

Build equity quickly

If you are able to make monthly payments that are higher than usual because of an increased salary or any other fortune, you can switch from a 30-year mortgage to a 15- or 20-year mortgage. This gives you an opportunity to build equity fast and save extra money on the financing fees. In other words, you build equity at a quicker rate without having to put out substantial amount of money monthly. That may be when you want to consider bi-weekly refinancing options.

Change the type of the loan program

As a homeowner, you may have the desire to change to a fixed rate mortgage after you begin with an adjustable rate mortgage because of its stability. Due to the fact that the interest rates are always going down, the initial deal becomes less attractive. You may decide to change your loan program so that you can capitalize on the available rates that are best for you at the moment. If your adjustable rate mortgage is adjusting, this is a good reason for you to refinance in order to get a loan that has a fixed payment period. The period can range from three to fifty years.

Credit management

If you want to get better credit scores, then refinancing is a great way to help you achieve this objective. If your credit score has improved because the mortgage payments have been made at the specified time, you may be able to take advantage of that improved credit by refinancing to a loan that has decreased payments.

Debt consolidation

Debt consolidation that will result in a reduction of your credit score is another major reason for cash out refinancing. You can use the money from cash-out refinance to make payment of other bills, for example, credit cards. This is similar to transferring the debt into the mortgage. Mortgage rates are lower compared to that of credit cards so your monthly payment will reduce.

Make use of home equity

You can cash out refinance loan to tap into the equity that is already built up in the home. You may want to consolidate debts and pay off all the credit cards accounts, pay for your kids’ college tuitions, or make home renovations.

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Give Your Kitchen a Mini-Makeover with a New Sink https://homeloanadvisor.co/2014/06/24/give-your-kitchen-a-mini-makeover-with-a-new-sink/ https://homeloanadvisor.co/2014/06/24/give-your-kitchen-a-mini-makeover-with-a-new-sink/#respond Tue, 24 Jun 2014 21:51:44 +0000 https://www.homeloanadvisor.co/?p=544 Are you looking to give your kitchen a small makeover this summer? You should consider a mini-makeover with the addition of a new sink. If you’re on a budget but want to spruce up your kitchen and add some extra value to your home, adding a new sink could be just the right decision.

It’s a fact that the kitchen sink is one of the most heavily used appliances in your kitchen. To upgrade the appearance of your kitchen, eliminating your older sink for a new one will work effectively. The type of sink to add will depend on whether or not you will be retaining your present counter design.

Presently, it is clear that farm sinks are gaining huge popularity in the marketplace. Buyers are sure to discover this option adorned with sophisticated carvings. How attractive your kitchen sink will appear is highly dependent on the type of stone used. Crema marfil marble stone will always give your kitchen a softer tone.

For homeowners who desire a clean bold appearance, black granite is a great option. A classic design option will work perfectly with a grey Carrara marble stone. It is clear that all stone kitchen sinks are often fabricated to suit user’s demand. On this note, it is highly important to create time in selecting the best option to your need.

If you are looking for a modern appearance for your kitchen, going for stainless steel remains to be the best choice. Do you know that many stainless steel kitchen sinks are lead free in nature? They are often fabricated with quality in mind. They are also dent-resistant and use DSR technology. Based on its strength and durability, stainless steel can be used in several applications. Stainless steel is corrosion and rust-resistant. For this reason, stainless steel is considered a great choice for building your kitchen sinks.

For many new kitchen sink makeovers, copper is highly welcomed. Copper often unleash antimicrobial and antibacterial features. This will help you to cut back on harsh cleaning chemicals. On this note, copper is considered one of the safest metals to use as part of your home. For people who are on a low budget, going for porcelain kitchen sinks remain great. Porcelain has a glossy clean appearance that unleashes smooth elegant style for your kitchen.

You can install your sink yourself if you have the expertise. But if you have any doubts, rely on a professional to install your new sink! You will discover that at the end of the process, your kitchen’s appearance will be highly upgraded.

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