Getting a Mortgage When You Have Assets But No Income
.Getting a Mortgage When You Have Assets But No Income
Posted by Darrow Kirkpatrick | Aug 28, 2017 | Real Estate, Retiring
Most early retirees have no pension, annuity, or Social Security income. Even if you’re a traditional retiree, you might have only one of those income streams. But what if your lifestyle plans require a home purchase? Even if you have the savings to afford a house, you might not necessarily be able to liquidate enough of those assets quickly in a tax efficient manner. So you’ll need a mortgage. But most conventional mortgage loans are based on income. If you can’t show income, how do you go about getting a mortgage?
When we retired, downsized, and moved west I swore I’d never own another house. My post about our move across the country spells out the high quality of life we’ve achieved as renters — without the obligations of home ownership.
Getting a Mortgage When You Have Assets But No Income
Posted by Darrow Kirkpatrick | Aug 28, 2017 | Real Estate, Retiring
Most early retirees have no pension, annuity, or Social Security income. Even if you’re a traditional retiree, you might have only one of those income streams. But what if your lifestyle plans require a home purchase? Even if you have the savings to afford a house, you might not necessarily be able to liquidate enough of those assets quickly in a tax efficient manner. So you’ll need a mortgage. But most conventional mortgage loans are based on income. If you can’t show income, how do you go about getting a mortgage?
When we retired, downsized, and moved west I swore I’d never own another house. My post about our move across the country spells out the high quality of life we’ve achieved as renters — without the obligations of home ownership.
My article about renting vs. buying — one of the most popular on this site — lays out a procedure for analyzing the rent vs. buy decision. It’s a financial analysis that, in today’s world, is by no means guaranteed to support buying as the superior option….
But I have never denied the emotional benefits of home ownership. There is an element of control and security in owning the property where you live. I’m not immune to that feeling. We owned our home for the 17 years we were raising our son in Tennessee, and were content. But, for the past four years, other factors have clearly made renting the better choice for us.
Now, the scales may be tipping as we get visibility into later stages of retirement. The prospect of home ownership has again dawned. Up to now, we have loved our vagabond lifestyle, traveling the west from our home base in Santa Fe. Buying a home now would be a tacit acknowledgment that we were “settling down” in one place for our retirement. But this would be no snap decision for us. Our financial independence hinges on keeping our nest egg working hard. We can’t afford a six-digit mistake.
And, if we were to buy a home, another problem presents itself: We can well afford it, on paper, but where would we get the cash? Yes, we do keep a few years of living expenses on hand. But we don’t have any more than that lying around. The proceeds from our previous home sale in Tennessee have long since been folded into our growing portfolio. And, our other investment positions go back many years. So we can’t sell assets without incurring large capital gains taxes. This all means we would need a mortgage….
To continue reading, please go to the original article here:
https://www.caniretireyet.com/getting-a-mortgage-when-you-have-assets-but-no-income/
People Who Are Good With Money Avoid These Missteps
.People Who Are Good With Money Avoid These Missteps
By Jake Schroeder
While there are hundreds of potential mistakes people might make with money, there are some financial moves that can really set you back. Between bad habits and wishful thinking, poor financial choices can happen all the time. This round-up can serve as your guide for what not to do when it comes to personal finance. From not saving for retirement to living beyond your means, here are some things that people who are financially stable don’t do.
Lose Track of Money
Money isn’t infinite. That’s why it’s important to keep track of where you’re spending it. If you don’t know where your money is going, it’s easier to waste it. Let’s say you’re paying for subscription services you don’t use. Before long, you’ve spent $1,000 on music streaming, and you had no idea. That $1,000 you didn’t use could’ve paid down a credit card.
People Who Are Good With Money Avoid These Missteps
By Jake Schroeder
While there are hundreds of potential mistakes people might make with money, there are some financial moves that can really set you back. Between bad habits and wishful thinking, poor financial choices can happen all the time. This round-up can serve as your guide for what not to do when it comes to personal finance. From not saving for retirement to living beyond your means, here are some things that people who are financially stable don’t do.
Lose Track of Money
Money isn’t infinite. That’s why it’s important to keep track of where you’re spending it. If you don’t know where your money is going, it’s easier to waste it. Let’s say you’re paying for subscription services you don’t use. Before long, you’ve spent $1,000 on music streaming, and you had no idea. That $1,000 you didn’t use could’ve paid down a credit card.
Keep track of your spending, expenses, debts and investments. This doesn’t have to consume a lot of your time, but keeping track will ensure you’re going in with your eyes wide open. You should know where your money is and where it’s going.
Buy Houses They Can’t Afford
Being house poor isn’t a good look. This term refers to someone who uses most of their income on a housing payment. If you pay more for a house than you can actually afford, you’re putting yourself at risk financially.
Buying a house that you can’t really afford means you’re holding a lot of debt and making larger mortgage payments. The money you’re earning is all going to your mortgage instead of a savings account or a retirement fund. People who are good with their money understand that it’s better to stay within your means when it comes to housing.
Overspend on Credit Cards
Overspending on credit cards is one of the biggest financial mistakes someone can make. If you have too high of a credit card balance, you may be heading down a slippery slope. If you can’t make your payments, then you’ll also be subject to expensive late fees and interest charges.
Financially savvy people understand the importance of keeping their credit card debt low. You’ll save a ton of money on interest, and you won’t need to pay extra fees or late charges. The lower your credit card debt is, the higher your credit score will be, too.
Invest Money They Can’t Lose
To continue reading, please go to the original article here:
How Much House Can You Really Afford?
.How Much House Can You Really Afford?
Posted by Darrow Kirkpatrick Mar 1, 2021
Google “How much house can I afford?” and you’ll be awash in a sea of mortgage lenders. This is the mindset that younger people and the average consumer must take when it comes to buying a home: How much will a financial institution loan to me? And many, sadly, make their financial decisions based on how much they can borrow. They assume that you would want the maximum allowed.
How much house can I afford image with calculator
But FIRE-oriented folk, potential early retirees, and the financially independent are likely to look at the problem from other, different perspectives. The first might be, how modest a house can I live in, and still be happy? Another perspective might be, how will this impact my budget and savings rate long-term? A final perspective, since many in that group can afford to pay cash, is not how much will my income qualify me to borrow, but rather how much of my net worth can I sink into a house without taking on undue risk or compromising my cash flow?
How Much House Can You Really Afford?
Posted by Darrow Kirkpatrick Mar 1, 2021
Google “How much house can I afford?” and you’ll be awash in a sea of mortgage lenders. This is the mindset that younger people and the average consumer must take when it comes to buying a home: How much will a financial institution loan to me? And many, sadly, make their financial decisions based on how much they can borrow. They assume that you would want the maximum allowed.
How much house can I afford image with calculator
But FIRE-oriented folk, potential early retirees, and the financially independent are likely to look at the problem from other, different perspectives. The first might be, how modest a house can I live in, and still be happy? Another perspective might be, how will this impact my budget and savings rate long-term? A final perspective, since many in that group can afford to pay cash, is not how much will my income qualify me to borrow, but rather how much of my net worth can I sink into a house without taking on undue risk or compromising my cash flow?
Is the answer to that question essentially the same as for the borrower, who is qualifying based on income? Or is it somehow different, when you are buying a home outright? When I was faced with the home buying decision late last year, I had to answer this question for myself….
Qualifying for a Mortgage
Let’s take a look at the constraints on housing deals using traditional mortgages. As we’ve said, the lens through which the vast majority of people look at home affordability is simply, how large a mortgage can they qualify for? Not surprisingly, the mortgage industry has a well-tested rule of thumb for making the determination. It’s known as the “28/36” rule.
According to FreddieMac, and many other mortgage resources, you should take on no more than 28% of your monthly gross (pre-tax) income in a mortgage payment — principal, interest, property taxes, home insurance. (Note that maintenance and utilities are not included in that number, whereas HOA dues might be.)
The relation of mortgage payment to gross income is known as the “front-end ratio”. It’s found by dividing your monthly housing expenses by your gross income and multiplying by 100. Some underwriters allow higher percentages, and some require lower. I’ve seen ratios as low as 25% and as high as 30%. But 28% is the most common rule.
For most people, “gross income” would just be wages. For a retiree, it would be the combination of pensions, Social Security benefits, and perhaps investment withdrawals, using a conservative safe withdrawal rate. Individual institutions are likely to have their own rules for getting a mortgage based on assets.
The 36% number is known as the “back-end ratio.” It’s the suggested upper limit once you add in monthly payments on all other debt to your housing expenses and divide by your gross income. This is an attempt by your creditors to keep your overall debt manageable.
The Sweet Spot?
To continue reading, please go to the original article here:
https://www.caniretireyet.com/how-much-house-can-you-really-afford/
What It Means To Be Rich
.What It Means To Be Rich
Posted July 25, 2021 by Ben Carlson
My wife and I have a good system of divide and conquer when necessary so the next morning I took the kids for a family bike ride to get them out of the house to give her some peace and quiet after a rough night. On our bike ride we approached an older couple that was walking in the opposite direction. The woman, who looked like she may have had grandchildren based on the way she smiled at my kids, said to me, “You’re a very rich man.” Here I was feeling sorry about myself because I was tired from the night before and this stranger hits me with a perspective bomb out of nowhere.
I love the way she put this. She didn’t say I was lucky or blessed or had my hands full (I get that a lot with twins). She said I was rich which is not the way I ever looked at this before.
What It Means To Be Rich
Posted July 25, 2021 by Ben Carlson
My wife and I have a good system of divide and conquer when necessary so the next morning I took the kids for a family bike ride to get them out of the house to give her some peace and quiet after a rough night. On our bike ride we approached an older couple that was walking in the opposite direction. The woman, who looked like she may have had grandchildren based on the way she smiled at my kids, said to me, “You’re a very rich man.” Here I was feeling sorry about myself because I was tired from the night before and this stranger hits me with a perspective bomb out of nowhere.
I love the way she put this. She didn’t say I was lucky or blessed or had my hands full (I get that a lot with twins). She said I was rich which is not the way I ever looked at this before.
There are many ways to be rich beyond the amount of money you have in your investment portfolio or checking account. Plenty of people have a lot of money in the bank but terrible personal lives.
Having millions of dollars wouldn’t come close to providing the same feeling I got this past week watching my 7-year old scale a rock wall like a champ or confidently walk up to do a high ropes course with zero signs of trepidation or fear.
Huge gains in the stock market can’t possibly match watching my little guy ride his bike for the first time this summer.
No amount of money can melt my heart the way my youngest daughter does when she says something sweet to me out of the blue.
Being a parent is not always easy. At times there is chaos, yelling, screaming, crying, fighting, pouting and puking. But there’s also laughing. Lots of laughing. And smiling. And joy. For me, having kids is like setting a constant memory factory in motion.
Obviously, there are other ways to be rich that extend beyond family.
To continue reading, please go to the original article here:
https://awealthofcommonsense.com/2021/07/what-it-means-to-be-rich/
Too Smart
.Too Smart
Jul 13, 2021 by Morgan Housel
“One of the most persistent fallacies is the reflexive association of wealth with wisdom,” Ed Borgato once wrote.
Wealth might be a sign of good decisions, but can those decisions be repeated? And do good decisions in one field translate to wisdom in other areas of life? Maybe, maybe not – that’s the best we can say. And there are times where exceptional wealth can prevent empathizing with ordinary people, making insight more precarious.
A similar mistake, a bit harder to grasp, is the assumption that smart people have the right answers.
They may. But does intelligence in one field convert to others? Does being good at taking tests translate to, say, leading groups of people?
Maybe. It’s never clear.
Too Smart
Jul 13, 2021 by Morgan Housel
“One of the most persistent fallacies is the reflexive association of wealth with wisdom,” Ed Borgato once wrote.
Wealth might be a sign of good decisions, but can those decisions be repeated? And do good decisions in one field translate to wisdom in other areas of life? Maybe, maybe not – that’s the best we can say. And there are times where exceptional wealth can prevent empathizing with ordinary people, making insight more precarious.
A similar mistake, a bit harder to grasp, is the assumption that smart people have the right answers.
They may. But does intelligence in one field convert to others? Does being good at taking tests translate to, say, leading groups of people?
Maybe. It’s never clear.
And like wealth, there are situations where people become too smart for their own good, where intelligence is a liability and blocks good decisions.
A few causes:
The ability to create complex stories makes it easy to fool people, including yourself.
I know people I would not want to debate with on the question, “What is 2 + 2?” because they could go down a rabbit hole that’s over my head and leave me either exhausted or convinced the answer may not be four.
The dangerous thing is that those people can do the same things to themselves.
Richard Feynman said, “The first principle is that you must not fool yourself — and you are the easiest person to fool.” The smarter you are I think the truer that becomes.
When you’re blessed with intelligence you’re cursed with the ability to use it to concoct intricate stories about why things happened – especially stories justifying why you made a mistake or why you’ll eventually be right in an area you’re wrong.
To continue reading, please go to the original article here:
20 Home Renovations That Will Hurt Your Home’s Value
.20 Home Renovations That Will Hurt Your Home’s Value
You might love these renovations, but they'll cost you.
By Autumn Rose July 21, 2021
Your home isn't just a source of pride or a place where you can relax after a long day -- it's also an investment in your family's future.
And while it's natural to want to make improvements to increase your home's resale value, some renovations will actually cost you money in the long run. Just because you see something as an improvement doesn't mean a potential buyer will feel the same way. Find out which renovations are ones to avoid.
Lavish Lighting Fixtures
One common home improvement mistake is falling in love with unique or lavish light fixtures, said Alon Barzilay, founder of real estate development company Urban Conversions.
20 Home Renovations That Will Hurt Your Home’s Value
You might love these renovations, but they'll cost you.
By Autumn Rose July 21, 2021
Your home isn't just a source of pride or a place where you can relax after a long day -- it's also an investment in your family's future.
And while it's natural to want to make improvements to increase your home's resale value, some renovations will actually cost you money in the long run. Just because you see something as an improvement doesn't mean a potential buyer will feel the same way. Find out which renovations are ones to avoid.
Lavish Lighting Fixtures
One common home improvement mistake is falling in love with unique or lavish light fixtures, said Alon Barzilay, founder of real estate development company Urban Conversions.
"Whether it be ceiling-mounted lights in a dining room or a hanging pendant, there is a psychological phenomenon that happens when you go to a lighting store … you're going to pick something exciting and new instead of picking a new addition that suddenly matches the big picture," Barzilay said.
Further, the passage of trends works against homeowners. "Whatever is in vogue today will look dated 10 years down the road when you are ready to sell," he said. "Simple is best. Fortunately, lighting can easily be switched out at a low cost."
Too Much Wallpaper
With its patterns and texture, wallpaper can be an overwhelming design choice for your home. Plus, it's notoriously difficult to remove. Homebuyers might view wallpaper removal as a potential headache, and it could be the tipping point for someone who wants a more move-in ready home.
Fresh paint and neutral colors are always a good idea to help stage your home when it's on the market. If you do have wallpaper, think about whether it's beneficial to remove it and repaint the walls before any showings or open houses, so your potential buyers never have to think about your wallpaper mistakes.
Texture on the Walls and Ceilings
Just like wallpaper, texture on walls and ceilings is difficult to remove. Simply knowing that a time-consuming project lies ahead might cause homebuyers to decrease their offer. Think twice before deciding on a fancy textured painting technique, and play around with textured wall décor instead.
Quirky Tiling
Any over-personalized renovation can hurt the value of a home, especially something like tiling, which requires more effort and money to replace, said Bob Gordon, realtor and blogger at Boulder Real Estate News.
"Many buyers like to upgrade the floors in their homes," he said. "Adding tile or wood can make an improvement in value -- unless you get that person who wants the 1950s diner look and installs black-and-white tile. For their vision, this is the pinnacle of cool. But for a resale value, most homebuyers will see it as a distraction and something they will need to rip out."
To continue reading, please go to the original article here:
https://www.gobankingrates.com/investing/real-estate/home-renovations-hurt-homes-value/
17 Dumb Home-Buying Mistakes That Hurt Your Wallet
.17 Dumb Home-Buying Mistakes That Hurt Your Wallet
Take your time making the biggest purchase of your life.
By Daria Uhlig June 29, 2021 Real Estate Investing 101
Of all the investment decisions you're likely to make in your lifetime, a home purchase is by far the most personal. It's no wonder that buyers are eager to rush right into the real estate market the moment they realize they're in a position to buy. But because the purchase will likely be the most expensive one you ever will make, it's important to organize your priorities and your finances before you jump in.
Keep reading to learn about home-buying mistakes that can hurt your wallet — and steps you can take to avoid them.
Ignoring Your Credit
Strong credit can save you thousands of dollars in interest over the life of your mortgage loan. Credit problems can take time to resolve, so the earlier you start reviewing your credit, the better. The first step is to order a credit report.
17 Dumb Home-Buying Mistakes That Hurt Your Wallet
Take your time making the biggest purchase of your life.
By Daria Uhlig June 29, 2021 Real Estate Investing 101
Of all the investment decisions you're likely to make in your lifetime, a home purchase is by far the most personal. It's no wonder that buyers are eager to rush right into the real estate market the moment they realize they're in a position to buy. But because the purchase will likely be the most expensive one you ever will make, it's important to organize your priorities and your finances before you jump in.
Keep reading to learn about home-buying mistakes that can hurt your wallet — and steps you can take to avoid them.
Ignoring Your Credit
Strong credit can save you thousands of dollars in interest over the life of your mortgage loan. Credit problems can take time to resolve, so the earlier you start reviewing your credit, the better. The first step is to order a credit report.
You're entitled to one free report per year from each credit bureau, which you can order from AnnualCreditReport.com. However, through April 2021, all three credit bureaus — TransUnion, Equifax and Experian — are offering a free weekly online report to help you stay on top of your credit during the COVID-19 pandemic.
If you spot signs of trouble or inaccuracies, contact the appropriate credit bureau as soon as possible. Things to look for include:
Outdated information, such as a closed account that's being reported as open
Incorrect contact information
Accounts you didn't open
Accounts listed multiple times
Also, be on the lookout for old collection accounts you need to pay off. If you moved, for example, your final utility bills might not have reached you and a balance could remain, even though the account is closed.
House Hunting Without a Buyer's Agent
It might be tempting to go at it alone, armed with information available on the real estate portal sites. That could be a big mistake. Online sites let buyers view the inventory of properties on the market, but they aren't a substitute for a professional's knowledge.
A buyer's agent who knows your local market can prepare a comparative market analysis to determine an appropriate offer price for the home you're most interested in. They'll also negotiate on your behalf to make sure your best interests are protected.
In many cases, your buyer's agent is your only fiduciary in the real estate transaction, meaning the agent is the only professional you'll work with who has a legal obligation to put your interests above their own. What's more, the seller typically pays the buyer's agent, so you've got nothing to lose by arming yourself with professional representation.
Shopping With Your Heart vs. Your Head
To continue reading, please go to the original article here:
https://www.gobankingrates.com/investing/real-estate/mistakes-avoid-shopping-new-home/
20 Home Renovations That Will Hurt Your Home’s Value
.20 Home Renovations That Will Hurt Your Home’s Value
You might love these renovations, but they'll cost you.
By Autumn Rose July 21, 2021
Your home isn't just a source of pride or a place where you can relax after a long day -- it's also an investment in your family's future.
And while it's natural to want to make improvements to increase your home's resale value, some renovations will actually cost you money in the long run. Just because you see something as an improvement doesn't mean a potential buyer will feel the same way. Find out which renovations are ones to avoid.
Lavish Lighting Fixtures
One common home improvement mistake is falling in love with unique or lavish light fixtures, said Alon Barzilay, founder of real estate development company Urban Conversions.
20 Home Renovations That Will Hurt Your Home’s Value
You might love these renovations, but they'll cost you.
By Autumn Rose July 21, 2021
Your home isn't just a source of pride or a place where you can relax after a long day -- it's also an investment in your family's future.
And while it's natural to want to make improvements to increase your home's resale value, some renovations will actually cost you money in the long run. Just because you see something as an improvement doesn't mean a potential buyer will feel the same way. Find out which renovations are ones to avoid.
Lavish Lighting Fixtures
One common home improvement mistake is falling in love with unique or lavish light fixtures, said Alon Barzilay, founder of real estate development company Urban Conversions.
"Whether it be ceiling-mounted lights in a dining room or a hanging pendant, there is a psychological phenomenon that happens when you go to a lighting store … you're going to pick something exciting and new instead of picking a new addition that suddenly matches the big picture," Barzilay said.
Further, the passage of trends works against homeowners. "Whatever is in vogue today will look dated 10 years down the road when you are ready to sell," he said. "Simple is best. Fortunately, lighting can easily be switched out at a low cost."
Too Much Wallpaper
With its patterns and texture, wallpaper can be an overwhelming design choice for your home. Plus, it's notoriously difficult to remove. Homebuyers might view wallpaper removal as a potential headache, and it could be the tipping point for someone who wants a more move-in ready home.
Fresh paint and neutral colors are always a good idea to help stage your home when it's on the market. If you do have wallpaper, think about whether it's beneficial to remove it and repaint the walls before any showings or open houses, so your potential buyers never have to think about your wallpaper mistakes.
Texture on the Walls and Ceilings
Just like wallpaper, texture on walls and ceilings is difficult to remove. Simply knowing that a time-consuming project lies ahead might cause homebuyers to decrease their offer. Think twice before deciding on a fancy textured painting technique, and play around with textured wall décor instead.
Quirky Tiling
Any over-personalized renovation can hurt the value of a home, especially something like tiling, which requires more effort and money to replace, said Bob Gordon, realtor and blogger at Boulder Real Estate News. "Many buyers like to upgrade the floors in their homes," he said. "Adding tile or wood can make an improvement in value -- unless you get that person who wants the 1950s diner look and installs black-and-white tile. For their vision, this is the pinnacle of cool. But for a resale value, most homebuyers will see it as a distraction and something they will need to rip out."
To continue reading, please go to the original article here:
https://www.gobankingrates.com/investing/real-estate/home-renovations-hurt-homes-value/
Top 10 Rules for Money
.Top 10 Rules for Money
July 7, 2021 8:30am by Barry Ritholtz
Ten Simple Money Rules for Investing Success
Bad decisions and poor behavior are the primary reasons why many fail to meet their financial goals.
Creating lists1 is a useful way to organize your thoughts: I have created lists of rules for Investing, Valuation, Stock tips, Goldbuggery, even useless financial phrases to avoid. I find these exercises to be valuable ways to figure out what I think. Thinking about money – saving it, spending it, and most of all, how to invest it – is something I have spent decades doing. This has led to recognizing several fundamental truths about capital.
Naturally, I have organized these rules into a list:
Top 10 Rules for Money
July 7, 2021 8:30am by Barry Ritholtz
Ten Simple Money Rules for Investing Success
Bad decisions and poor behavior are the primary reasons why many fail to meet their financial goals.
Creating lists1 is a useful way to organize your thoughts: I have created lists of rules for Investing, Valuation, Stock tips, Goldbuggery, even useless financial phrases to avoid. I find these exercises to be valuable ways to figure out what I think. Thinking about money – saving it, spending it, and most of all, how to invest it – is something I have spent decades doing. This has led to recognizing several fundamental truths about capital.
Naturally, I have organized these rules into a list:
My Top 10 Rules for Money
1. Investing Is Both Simple and Hard: The basic premise behind successful investing is easily understood: “Invest for the long term, be diversified, watch your costs, and let compounding work its magic.”
But following through can be challenging. Humans are plagued by an inability to just “sit there and do nothing.” Failing to do nothing leads to costly errors and loss of capital that erode returns. Understanding what is required is very different than being able to perform, regardless of circumstances, for decades on end.
This leads us to:
2. Behavior Is Everything: The inability to manage emotions and behavior is the financial undoing of many. To paraphrase William Bernstein, “the extent you succeed in finance is based on your ability to suppress your limbic system. If you can’t do that, you’re going to die poor.”
Even the greatest stock pickers will underperform if unable to control their emotional impulses. Allowing those emotional hot buttons to get pressed is how people go wrong in investing. There are no shortcuts, secrets or get rich quick schemes that work, except for my 3-day workshop where I reveal the secrets of the ultra-rich for the low, low price of $4,995. Sign up here.
3. Moderation In All Things: Think of the majority of the assets in your portfolio -– hopefully a diversified, global mix of passive index funds — as the basic meat and potatoes of investing. You can add seasonings, herbs, and vegetables to spice it up and add some flavor.
To continue reading, please go to the original article here:
To hear an audio spoken word version of this post, click here.
20 Insider Tips To Save Money on Every Part of Your Home
.20 Insider Tips To Save Money on Every Part of Your Home
Cut costs on your mortgage, renovations and decorating.
By Gabrielle Olya July 12, 2021 Save Money at Home
The expenses that come with buying, renovating and decorating a home can add up, but fortunately, there are ways to save money every step of the way.
GOBankingRates asked real estate insiders for their best tips on how to save money on every part of your home, and their advice can help cut costs for anyone looking to buy a new home or renovate the one they currently have.
Here's how to save money in every nook and cranny of your house.
20 Insider Tips To Save Money on Every Part of Your Home
Cut costs on your mortgage, renovations and decorating.
By Gabrielle Olya July 12, 2021 Save Money at Home
The expenses that come with buying, renovating and decorating a home can add up, but fortunately, there are ways to save money every step of the way.
GOBankingRates asked real estate insiders for their best tips on how to save money on every part of your home, and their advice can help cut costs for anyone looking to buy a new home or renovate the one they currently have.
Here's how to save money in every nook and cranny of your house.
1. Get a Mortgage With No Down Payment
Find out if you qualify for a government home loan, as there are options that require no down payment at all. U.S. Department of Agriculture loans are available for borrowers in need who want to purchase a home in rural or suburban areas. Veteran’s Administration loans are available to active-duty or prior-duty service members and, in certain cases, their spouses and widows or widowers. VA loans are available through private lenders, such as NBKC Bank. VA home loans and USDA loans do not require a down payment.
“The greatest features of a VA home loan are that there is no down payment required if you stay within the county loan limits, and there is no PMI insurance ever,” said Jim Schneider, former army officer and a loan specialist at NBKC Bank. “On any other type of loan, if you put down less than 20% of the purchase price you are required to pay PMI insurance on the loan. This can be hundreds of dollars per month, which can be totally avoided by doing a VA loan. On top of those benefits, the VA loan will also have the lowest rate available among all loan types because it is the least risky loan a bank can do.”
2. Take Advantage of Down Payment Assistance Programs
If you can’t afford a down payment and don’t qualify for a mortgage with no down payment, that doesn’t mean you can’t buy a home.
“There are so many down payment assistance programs out there for buyers, so educate yourself,” said Dawn Houlf, realtor and owner of EXIT Realty Number One.
One option is a 203k loan, which can also help cover renovation costs.
“First-time homeowners who want to renovate their homes on a budget, or homeowners who opted to buy a distressed property for a good deal, should strongly consider the 203k loan,” said Than Merrill, founder of real estate investment company CT Homes. “A 203k loan is a type of home renovation loan that is backed by the Federal Housing Administration.
The loan includes both the cost of purchasing a property, plus the estimated costs for renovating it. Homebuyers that wish to rehabilitate an older or damaged home can get approved. Not only will this loan cover home upgrades, it also allows borrowers to put down 3.5% on their homes as opposed to the standard 20%.”
To continue reading, please go to the original article here:
https://www.gobankingrates.com/saving-money/home/tips-to-save-money-on-home/
Buying a House in 2021
.Buying a House in 2021
Published June 30, 2021 by J.D. Roth
I feel as if, right now in 2021, I am swinging along on a comfortable trapeze bar and that I need to swing to the next one. And…I’m a little scared. One source of this trepidation is my current housing situation. Kim and I sold our home last month and are looking for another. As you might have heard, it’s a crazy time to buy. Our stories today reflect that. It’s the parable of the trapeze by Danaan Parry.
Buying a House in 2021 June 23, 2021 by One Frugal Girl
Last June we had a wild idea. After nearly twenty years of living in the same house, we decided it was time to move. Despite limited inventory and wildly escalating prices, we vowed to find a new place. With flexible work options, we can finally move out to the countryside. How hard could it be to find a new place to live? It didn’t seem that difficult at first. We planned to drive through a few neighborhoods, make an offer, and move in.
Buying a House in 2021
Published June 30, 2021 by J.D. Roth
I feel as if, right now in 2021, I am swinging along on a comfortable trapeze bar and that I need to swing to the next one. And…I’m a little scared. One source of this trepidation is my current housing situation. Kim and I sold our home last month and are looking for another. As you might have heard, it’s a crazy time to buy. Our stories today reflect that. It’s the parable of the trapeze by Danaan Parry.
Buying a House in 2021 June 23, 2021 by One Frugal Girl
Last June we had a wild idea. After nearly twenty years of living in the same house, we decided it was time to move. Despite limited inventory and wildly escalating prices, we vowed to find a new place. With flexible work options, we can finally move out to the countryside. How hard could it be to find a new place to live? It didn’t seem that difficult at first. We planned to drive through a few neighborhoods, make an offer, and move in.
If only it were that easy! Instead of finding a new house, we spent countless hours stalking new home listings and setting alerts for neighborhoods in our desired price range. Once a week, we drove north and west in search of the perfect spot, only to come home tired and disappointed.
After nine months, we grew restless and eventually settled on a house we didn’t love. Thankfully, an undisclosed conservation easement allowed us to back out of the deal. If it hadn’t been for that glitch, we would’ve bought the wrong house and been miserable.
Must-Haves When Searching for a Home
To further complicate matters, our list of must-haves grew and shrank throughout our home buying journey. What seemed important one day didn’t seem significant the next. Each time we stepped into a house, we changed our minds.
But nearly buying the wrong house changed everything for me. The house we almost bought was dark and dismal, with small windows and a shady backyard. After recognizing our error, we only considered houses with large windows and lots of natural sunlight.
To continue reading, please go to the original article here:
https://www.onefrugalgirl.com/buying-a-house-in-2021/