Navy Fellas Realty Group

Real Estate, Residential sales and purchase

An Overview Of Private Mortgage Insurance

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An Overview Of Private Mortgage InsuranceWhen you are going through the process of looking for a new home, you are probably focused on the sticker price of that home. Even though it is important to think about your down payment, your monthly mortgage payment, and the total amount of the loan, there are other expenses that you might need to cover as well. If you do not put down enough money, there is a chance that the lender could ask you to pay for something called private mortgage insurance. What is private mortgage insurance and how much do you have to pay? There are several important points that you should keep in mind.

Why You Might Purchase PMI

Private mortgage insurance is something that the lender may ask you to purchase as a way to reduce their risk. If you do not make a sizable down payment, then the lender is responsible for funding most of the cost of your home. If you end up defaulting on the cost of that loan, the lender will lose a major amount of money. With PMI, the lender will be able to get his or her money back in the event that you default. Even though the exact cost of PMI will vary, you should expect to pay somewhere between 0.5 percent and 2 percent of the loan. You might be able to ask the lender to check with multiple options to find the least expensive policy possible for you. Once the PMI policy is instituted, this is something that you will have to pay on top of your monthly mortgage payment.

Avoiding PMI Payments

Importantly, there are ways that you can avoid PMI. You might be able to avoid this insurance policy altogether if you are able to increase the size of your down payment. If you cannot do that, the PMI policy will usually be canceled when you reach a certain threshold in equity. This is something that you should negotiate with the lender before you sign on the dotted line. In some cases, the PMI policy as waved when you reach 10 percent of the loan amount paid back. Even though you should check with a professional accountant, PMI is likely tax-deductible, similar to mortgage insurance.

 

The Top Ways To Upgrade The Exterior Of Your Home On A Budget

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The Top Ways To Upgrade The Exterior Of The Home On A BudgetThere are a lot of people who are spending more time at home these days. As the temperature starts to warm up once again, there are some homeowners who are looking for ways to upgrade the outside of their home. Even though there are some people who are looking at installing a brand new patio or deck, this can be extremely expensive. Fortunately, there are ways that homeowners can completely transform the exterior of their home without breaking the bank. Take a look at a few of the top ideas below.

Consider Adding An Outdoor Rug

First, homeowners should consider adding an outdoor runner or rug to the exterior of their home. Because this run is going to be outside, try to go with bright colors. Furthermore, there are also specific runners and rugs that have been designed specifically to stand up to the wear and tear of the outdoors. Consider adding a rug that leads from the patio door to the deck. Or, think about placing an area rug underneath the table outside. This can completely change the look of the patio.

Think About Installing A Swinging Chair

For those who are looking for a way to relax outside, consider installing a few swinging chairs. In some situations, homeowners might be able to attach a swinging chair directly to the awning outside. In other situations, it might be a smart idea to install a swinging chair that hangs from a tree in the yard. It is important to make sure the awning or the tree is able to support the chair before it is installed. Then, add a bright cushion to the chair and relax outside with a great book! 

Use Citronella Candles

Anyone who likes to spend evenings outside under the stars should consider using candles. Specifically, think not using citronella candles. Citronella candles will help keep the mosquitoes away in addition to adding a majestic fuel to the outdoors. Think about using them on top of poles that line the walkway. This is a great way to add a little bit of ambiance to an evening party.

Consider a few of these ideas to completely change the exterior of the home in a budget-friendly way.

 

4 Steps To A Smooth Mortgage Refinance At A Rock-Bottom Rate

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4 Steps to a Smooth Mortgage Refinance at a Rock-Bottom RateRight now is the best time to look at refinancing your home. Even if your current mortgage is as young as a year old, you might find that a refinance is in your best interest.

Be Sure That A Refinance Makes Sense

With today’s rates, refinancing makes sense for many homeowners, but it might not be the right move for you. Depending upon your mortgage, you may pay a penalty if you prepay early. Also, if you’ve paid heavily into your mortgage, refinancing into a new 20 or 30 year mortgage could cost you money over the long-term. The bottom line is to carefully read through your loan documents or even call your loan company to find out the details of the impact of a refinance.

Consult With A Professional

Once you’ve determined that a refinance makes sense in theory, it’s time to talk with an objective professional, i.e., not your loan rep. Seek out a fiduciary, who has receives no gain whether or not you refinance. Have the professional run the numbers so you can see in black and white where you will stand financially after a refinance.

Compare Rates

If you and your financial professional decide that a refinance is the way to go, now it’s time to compare rates. Even with rates at rock bottom prices right now, you’ll find that you might save even more money just by shopping around. Also, remember that if your credit is excellent, you have more negotiating power. If you have a preference with working with a certain company, ask them to match the interest rate you’ve been offered by a competitor. 

Protect Your Investment

Now that you’ve improved your mortgage situation with a refinance, it’s time to consider what your heirs will be left with when you’re no longer here to provide for them. Make sure that your loved ones can reap the benefit of your savvy financial planning by taking out a life insurance policy. There are many variations on life insurance policies, so by sure to compare and contrast benefits, terms and rates.

As a homeowner, you should always be on the lookout for ways to maximize your investment. Use these refinancing tips to get the most out of your home’s value.

When Is The Best Time Of Year To Buy Things For A Home

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When Is The Best Time Of Year To Buy Things For A HomeFor those who are trying to buy things for their home, it is important to think carefully. Nobody wants to overpay; however, reaching for something cheap may simply end up getting replaced quickly. There are a few highlights that everyone should consider purchasing for their home in January!

Purchase Some Furniture In January

First, everyone has to make sure they think about buying furniture either in January or July. A lot of furniture manufacturers provide retail stores with new pieces in February and August. Therefore, a lot of furniture will go on sale starting either in January or July.

Storage Items Go On Sale In January

Again, a lot of stores will roll out sales in January for storage essentials such as baskets, shelves, and organizing systems. There are a lot of student’s who are looking for inexpensive items before the start of the new semester and what’s leftover after Christmas will often go on sale in January.

Major Appliances Go On Sale During January And The Holidays

One of the most expensive items that people purchase for their home is a new appliance. These tend to go on sale during the holidays and shortly after Christmas. With new versions coming out at the start of the new year, the prior year’s models need to be cleared out and retail stores will slash their prices in January.

Flooring And Paint Will Go On Sale In January

A lot of homeowners will take breaks from remodeling projects during the holiday season. Therefore, paint manufacturers and flooring specialists are often desperate for business during the winter. For this reason, a lot of paint and flooring essentials will go on sale during January, providing homeowners with a chance to save some significant money on their next renovation projects.

Linens And Towels Go On Sale In January

Finally, anyone who is looking for new linens and towels should try to wait for January. These are common gifts during Christmas so retail stores will be looking for ways to clear out the leftover inventory after the holidays. As a result, a lot of linens and towels will be marked for major discounts following Christmas.

Many Buyers Are Willing To Go Over Their Budget For The Perfect Home

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Many Buyers Are Willing To Go Over Their Budget For The Perfect HomeFor those who are looking for a new home, it is important to take the time to get this decision right. For a lot of people, a home is the most valuable investment they are ever going to make. As a result, it is critical to evaluate all of the options that are available. That way, everyone will get the most out of their time. What about setting a budget? How important is this and should people think about going over it?

It Is Important To Budget First

When someone is looking for a home, the first step is to know the budget. As a rule of thumb, those people should try to avoid spending more than 30 percent of their monthly income on housing expenses. This is monthly income before taxes. For those who are having trouble doing this calculation, this is an area where a trained professional can provide assistance. That way, everyone will know how much money they can spend on a home after their down payment.

Make A List Of Must-Have and Nice To Have Features

Next, it is important to come up with a list of features they must have and features that would be nice to have. Everyone has to make sure they know what features they want to include the budget. There are some things that homeowners need to have, such as a certain number of bedrooms. Then, there are features that people would like to have but aren’t necessary. What happens if someone finds a home with everything? Should they go over budget?

Finding The Perfect Home Is Worth A Few Extra Dollars

In the end, a home is more than just a number on a piece of paper. Because a home is also about intangible values and benefits, it is okay for homeowners to go over their budget slightly for the perfect home because there is a great chance that they are going to be there for years to come. At the same time, everyone also has to make sure they know how far over budget they are willing to go. Then, they can find the perfect home. 

What Do You Need To Know About Buying And Selling A Home During The COVID-19 Pandemic?

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What Do You Need To Know About Buying And Selling A Home During The COVID-19 Pandemic?For those who are thinking about buying or selling a home during the pandemic, they may feel like this is a difficult task. Even though it is true that this is going to be a challenge, people are able to increase their success rate by adapting to a new environment. When it comes to buying or selling a home during the pandemic, there are a few tips that everyone should keep in mind.

Many Showings Are Going To Be Virtual

Make sure that everyone is ready to provide a virtual tour or go on one themselves. Of course, everyone is currently living in an era of social distancing. Therefore, everyone has to make sure that they do not unnecessarily expose themselves to anyone. Virtual tours are a great way to adapt to this measure while still purchasing or selling a home. For those who are thinking about providing a virtual tour to someone else, make sure to take the time to explore all of the options available. Some software programs are going to be better than others.

Ensure There Is A Safe Way To Buy And Sell A Home

It is critical to think about other safety measures that people can take as well. Everyone has to make sure that they endear themselves to as many buyers as possible. In addition to providing virtual tours, it may also be helpful to provide hand sanitizer. Or, people need to make sure that they bring hand sanitizer. Of course, make sure to wear a mask at all times when someone is going to be within 6 feet of someone else. This is another important safety measure that everyone should take.

There Is Help Available During The Pandemic

Finally, it is also a great idea to note that there is financial help available. Lots of people have struggled during the pandemic. That is why there are financial resources available. Be sure to speak with a trained professional and figure out if there are ways to make the process of buying or selling a home just a little bit easier. This could end up saving someone a lot of time and money during the process.

Trying to Sell a Home with Tenants Still Living Inside? These 3 Tips Will Make Your Life Easier

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Trying to Sell a Home with Tenants Still Living Inside? These 3 Tips Will Make Your Life EasierAre you thinking about selling a home that you have rented out for some additional revenue? If so, you’re likely trying to discern how to best inform the current tenants and conduct the sales process in a way that works well for all of the parties involved. In today’s blog post we’ll explore how to sell your home while you’re renting it out to tenants and share three tips that can make the process a bit easier.

#1: Review Local Laws and Your Tenancy Agreement

First, you’ll want to break out your tenancy agreement and download any state, provincial or municipal laws that apply to landlord-tenant relations. Selling a home with renters living in it can result in a number of sticky situations. You’ll want to ensure that you conduct yourself in accordance with the rule of law as you may end up in court if the process goes sour.

#2: Communication is a Vital Part of the Process

Next, you’ll need to ensure that you’re communicating with your tenants every step of the way. Meet with them to let them know that you would like to place the home on the market, and explain how the sales process is going to work. Allow your tenants to ask questions and to state their case as they may be willing to buy the home from you if they can afford it, or if the price is right. Be polite but firm; you don’t want to encourage any hostility but this is your property and ultimately, your decision.

Don’t forget to fully inform your tenants as to how home showings will work, as they’ll likely be concerned as to who is being provided with keys to their home.

#3: Incentives Can Sway an Unruly Tenant

Finally, if you’re faced with some unruly tenants that are making the sales process challenging you may find that financial incentives make them back off a bit. You’ll need their cooperation in keeping the home relatively clean and tidy, so you may want to consider offering some gift certificates or paying a portion of the rent in exchange for their help. If you’re hosting an open house over a weekend, offer to put their family up in a nice hotel somewhere in town where they can enjoy a weekend together.

While selling a home with tenants living inside is rarely easy or fun, it’s certainly doable. When you’re ready to learn more about the home selling process, contact your local real estate agent as they can share their expertise and guidance to ensure you get the most from your sale.

Moving This Winter? Here Are 5 Relocation Tips That Will Help Ease the Stress of Moving

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Moving This Winter? Here Are 5 Relocation Tips That Will Help Ease the Stress of Moving Moving is not exactly enjoyable at any time of the year, but it can be especially stressful in the winter. Moving all of your items when it is snowing and blowing outside makes things a lot tougher. However, if you prepare accordingly and have the right attitude, you’ll find that your move will go much smoother. Here are five relocation tips that will help ease the stress of a move.

Do not Pack Your Winter Supplies

When you are moving in the wintertime, you should keep your winter supplies, such as a snow shovel and salt, in the car with you. For example, let’s say you get to your new place and there is a lot of snow on the ground. If you have your shovel nearby, you can dig out a path from the driveway to the front door. If you see ice on the ground, you can sprinkle salt on it to prevent falling and hurting yourself.

Pay Attention to the Weather

It is a good idea to watch the weather reports the day of your move. If they are predicting a big snowstorm or other dangerous conditions, it may just be best to reschedule your move to a different day.

Hire Movers

Hiring movers will cost some extra money, but it will be well worth it. If you hire professional movers to move your belongings, you will not have to worry about carrying heavy furniture in the snow and ice. They have the experience to get your items moved in a timely manner.

Get Your Car Serviced

If you are moving a long distance, you should get your car serviced beforehand. Take it to a trusted mechanic and have him check your tires and brakes. If you let a professional look at your car before your move, you will be less likely to break down on the road.

Protect Your Entryways

When you move in the winter, you can bring in a lot of snow and salt from the outside, damaging your floors. That is why you should place cardboard or plastic on your flooring before you start the moving process. It will prevent snow, ice and other particles from ruining your floors.

Moving during the winter is not exactly pleasant, but it does not have to be impossible. If you follow these helpful tips, you will have a much easier move. If you have any more questions, you should contact our trusted real estate professional today.

Purchase The Right Amount Of Home Insurance

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Purchase The Right Amount Of Home InsuranceFor most people, their home is the most valuable investment they will ever make. Therefore, it needs to be protected. This is where homeowners’ insurance is critical. At the same time, buying the right amount of homeowners’ insurance can be a bit of a challenge.

A home that is underinsured leaves the homeowner vulnerable to situations involving fires, floods, and theft. On the other hand, nobody wants to throw away money unnecessarily by over-insuring the home. How can everyone purchase the right amount of homeowners’ insurance?

Review The Coverage Every Year

First, people’s needs are going to change from year to year. Therefore, everyone should review their policy annually. For example, actual cash value only reimburses someone based on the current condition of the home. For example, if a home was built ten years ago, the actual cash value will only provide someone with the depreciated value of the home and not the original value. While this might be enough at the beginning, it may not be enough ten years from now. Everyone has to make sure they purchase enough insurance to cover the cost of rebuilding the home, excluding the cost of the land.

Overlooking Valuables And Liability

Another common mistake that people make when it comes to homeowners’ insurance is overlooking issues such as valuables and liability. Most people have enough insurance for the structure of the home. Most people do not have enough insurance to cover liability claims and valuables. Liability claims might arise if someone gets hurt on the property and the homeowner gets sued. Valuables are important if the home burns down or if someone steals something from the home. All homeowners must have enough homeowners’ insurance to protect themselves against potential liability claims (such as someone slipping and falling in the home) and the loss of valuables (such as electronics and jewelry). Everyone has to make sure they document these valuables appropriately.

Purchase The Right Amount Of Homeowners’ Insurance

Make sure you include everything to purchase the right amount of homeowners’ insurance. Review current construction costs as part of the process. Finally, review the fine print of the homeowners’ insurance policy every year to avoid being underinsured or over-insured.

How Are Different Mortgage Lenders Handling Student Loans During the Pandemic?

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How Are Different Mortgage Lenders Handling Student Loans During the Pandemic?The coronavirus pandemic has had a massive impact on everyone. This pandemic has led to massive economic issues as well. Given the ongoing crisis as it relates to student loan debt, many students are wondering how the pandemic is going to impact their student loans and how their student loans are going to impact a potential mortgage payment. There are a few points to keep in mind.

Freddie Mac

In general, loans backed by Freddie Mac are going to use the student loan payment that is marked on the credit report. If this amount is $0 or unknown, then the lender is going to use 0.5 percent of the outstanding loan balance. This should also be reported on the credit report. Then, the lender will provide the borrower with information on possible mortgages.

Fannie Mae

When it comes to loans that are backed by Fannie Mae, students might still be on an income-driven repayment plan. In this case, the monthly payment might be zero and the lender may qualify a potential borrower with this $0 payment. On the other hand, if the loans have been deferred or are in forbearance, then the lender may calculate a payment that is equal to approximately 1 percent of the remaining balance on student loans. 

FHA Loans

For individuals going through FHA, the lender is going to run a few calculations. The lender may look at one percent of the remaining balance on the loan, the monthly payment that is reported on the credit report, or the actual documented payment as long as the borrower provides ample evidence. The lender will likely use the greater of these amounts in calculations. 

Why Do These Student Loan Payments Matter?

Credit reports are an essential part of the home-buying process. It is critical for everyone to understand what their student loan payments are and how they might impact their credit report. Furthermore, their student loan payments are also going to have an impact on the monthly mortgage payment they can afford. Therefore, it is important for everyone to make sure the information documented on their credit report is accurate when it comes to their student loans.