Finance, Mortgages, Real Estate & More

Going green. Eco-friendly. Energy efficient. These are the buzz words in our modern society. No doubt you’ve heard or seen them on several occasions during your home search. Maybe you’ve seen a listing that boasts an air-source heat pump or one that mentions high performance windows. Unless you understand the benefits of such features, these alluring real estate descriptions fall on deaf ears, so to speak. 

Here’s a simple look at some popular “green” home features and why they’re valuable:

Upgraded heating, ventilation and air condition systems

Keeping your air circulation systems well maintained and changing those air filters often will help reduce energy consumption and make these systems perform more efficiently. 

If you’re the one doing the upgrade: Advanced HVAC system upgrades can be used as a $50 tax credit if they use no more than 2% of a furnace’s total energy. 

High performance windows

If you see a home with “energy efficient” or “high performance” windows, that means they use advanced technologies to keep your home’s temperature regulated more effectively. For instance, they may be made with special coatings or improved frames to help reduce heat in the summer and keep it in during the winter. 

If you’re the one doing the upgrade: If you replace your windows with Energy Star qualified windows, you can be credited 10% of the total cost up to $200 ($500 if you’re replacing doors).

Tankless Water Heaters

Did you realize water heating can account for 14-25% of the energy consumed in your home? Go tankless to save big on your power costs. These instant water heaters provide hot water on demand, yet they are about 35% more energy efficient than the big, stand-up tanks. Plus, their compact design takes up far less room. 

If you’re the one doing the upgrade: First of all, be sure to check with your local city code before installing. As for the tax benefit, as long as the tankless unit has an energy factor of 0.82 or less (or has a thermal efficiency of 90%), you can receive a $300 credit. Cha-ching! 

Rainwater collection / runoff prevention systems

These systems are designed to collect rainwater from your home’s roof and gutters to be used for irrigation or other non-potable (non-drinking) uses. You can use collected rainwater to wash your car, water your veggie garden or, in the event of an emergency, toilet flushing or clothes washing. 

If you’re the one doing the upgrade: In Arizona, homeowners can take a one-time tax credit of 25% of the cost of the system (up to $1,000). Not every state provides a tax credit for water harvesting. Check with your local state representatives or tax professional for more information.

Find more tips and information on green living and real estate on BurlingtonMortgage.biz’s blog. 

Despite it being your domicile for several years, you’re staring to think your home isn’t all it’s cracked up to be. Perhaps you’re tired of the outdated bathroom, frustrated by the lack of storage space, or disappointed in the neighborhood’s declining value. For whatever reason - or reasons - you’re beginning to seriously consider other options; namely, remodeling or relocating.

If any of this sounds familiar, you should weigh the pros and cons of both options before making your final decision. Depending on the severity of the issues and the current market condition, one option could be more beneficial than the other.Relocating

Pro: If the market is active, you may be able to sell quickly and for a good price.Con: If your area is experiencing a market downturn, expect your home to sit for a while.

Pro: Relocating can save you the time, money and hassle of improving your own home by letting you start fresh in a new place.Con: Relocating can be very costly. Aside from buying a new home, you’ll inevitably spend money on other things like moving.  Think about the things you dislike about your current home and weigh them against the cost of buying a new home.

RemodelingPro: Save yourself the money, time and stress of having to search for a new home by remedying your current home’s problems. Need more space? Consider adding on an extra room or a garage with a FROG. Want to update your old-fashioned kitchen? Price out an upgrade package from a local remodeling company.

Con: Although it will probably cost less than buying a new home, remodeling can be costly in other ways. It takes a lot of patience and planning to remodel, especially if you’re doing it yourself. Pro: Add value to your home with modern upgrades. If you’re trying to up your home’s value before listing it on the market, remodeling could be a great idea.

Con: Some homeowners sink a lot of money into a home, thinking it will add a tremendous amount of value to the property. Unfortunately, that’s not always the case. Don’t waste money that could go toward a down payment on a new home.

If you need tap into the equity you’ve built in your home for a remodeling project, you may want to look into cash out mortgage refinancing. Most lenders offer cash-out refinancing assistance although their guidelines can vary for mutliple reasons. You can use the rate tables on BurlingtonMortgage.biz and ForTheBestrate.com to find mortgage lenders, brokers, and banks serving your area.

They say you can’t judge a book by its cover, but when it comes to selling a home, first impressions are everything. If you’re serious about getting the best offer, you have to grab potential buyers right from the start, and although many aspects of your property can alter according to changing tastes and fashions, the experts agree that there is an exact science to getting noticed. There are a lot of ways to add curb appeal to your property, but here are three time-tested, cost-efficient tips that may make the difference between a passing glance and love at first sight.

Paint Your Door
It may seem simple, but a freshly painted door is at the top of the list when it comes to many experts’ methods of adding instant appeal to a home. Not only is your front door the first thing prospective buyers notice, it is also where you welcome them into your house, so it makes sense that it should be welcoming. Be sure to pick colors that grab attention while staying true to the overall character of your property. Whether you choose bright hues or subdued earth tones, a new paint job is the proverbial icebreaker.Create Symmetry
It has been proven that symmetry sells. Not only is visual balance easy on the eyes, a smartly arranged exterior can create subtle impressions of value and give viewers a more accurate picture of your home’s spatial potential. Try simple compositions of light fixtures, plants, and front-door accents to lead the eye and entice the imagination.

Replace Hardware
House numbers, doorknobs, and light fixtures seem like negligible details, but outdated, tarnished, or mismatched hardware can distract from your home’s true aesthetic character, and buyers notice it. Consistency in the style and quality of hardware throughout the home is not only easy and affordable to achieve, it will also be appreciated by potential buyers who notice little details.If you are considering buying a home that will need some work, you may want to look at an FHA 203K loan. These mortgages allow consumers to finance the costs of minor improvements into their loan amounts as long as they do not exceed $35,000. With 203K purchase loans, borrowers can finance up to 96.5% of the “to be improved” value or 96.5% of the sales price plus the total cost of all rehabilitation.

Hud’s 203K guidelines >

People write to us from time to time inquiring about conforming loan limits and jumbo financing. Conforming loan limits are set by the Office of Federal Housing Enterprise Oversight, Freddie Mac and Fannie Mac are unable to purchase loan amounts that exceed the limits set by OFHEO. Due to this restriction, there is less demand for jumbo loans and thus interest rates for these programs are often higher than what’s available for conforming mortgage products.

In most areas of the United States, conforming loan limits caps out at the following levels:

• 1 Unit - $417,000
• 2 Unit - $533,850
• 3 Unit - $645,300
• 4-Unit - $801,950

There are certain high-cost markets in the US where the conforming loan limits have been raised. The Federal Housing Finance Agency sets the limits for these areas. You can review loan limits in a given area on FHFA’s web site.

Additional Blog Posts and Resources:
Fannie Mae Jumbo Loan Information
Federal Housing Enterprise Oversight

 

When borrowers take out a fixed rate mortgage, they generally expect to pay the same dollar amount every month. With this type of loan, the mortgage interest rate
 and principal amount is set, without the ability to change, for the entire life of the loan. However, a portion of your mortgage payment is calculated off of real estate taxes and insurance premiums, which can change periodically. 

Property taxes and insurance costs are typically held in an escrow account that your lender sets up for you. The lender will then normally roll the cost of the escrow into the whole mortgage amount, saving the you, the borrower, the hassle of paying several separate bills. 

An adjustment in property taxes and/or insurance will affect the escrow portion of your mortgage, thereby changing your total monthly payment. 

If you have an adjustable rate mortgage (ARM), your payment is likely to change, due to the nature of this type of loan. With an ARM, your interest rate will be fixed for an initial period of time (typically 3, 5 or 7 years), but then the interest will be adjusted once a year, for the remainder of the loan. This adjustment in interest could increase (or possibly decrease) your monthly mortgage payment.

Could my payment ever go down?

Although it is possible for your fixed-rate mortgage payment to decrease, it is far less likely. Unless the assessed property value drops, or there was a significant error that was made during your mortgage process, your payment will probably not be lowered.

With an ARM, it is possible for your payment to decrease after the fixed-rate period is over, depending on current mortgage rates.