Thursday, December 26, 2013

Can New Flooring Add Value to Your Home?

Flooring is one of the most noticeable features of a room. It has the potential to affect your home’s look and feel, which is especially important if you are thinking about selling your home. You can greatly enhance your home’s overall look with a floor upgrade without a total home remodel.
Flooring such as bamboo and hardwood floors are surefire bets to give your home value a boost.

The thing to keep in mind when considering new flooring is whether or not it would add perceived value or not to your home’s appraised value. If an appraiser says that the overall condition of your home will be raised from average to very good, then new flooring is a fantastic addition. If you are selling your home, it’s also important to keep in that buyers can be picky when it comes to flooring, and it can affect their overall decision to buy or not to buy.
The perfect flooring additions are visually impressive while providing considerable ROI. The perfect combination in a home would be laminate wood flooring in living areas, high-grade marble in bathrooms, and Berber carpet in the bedrooms. But the key is to choose flooring that fits your home’s style.
What types of flooring can add value to your home?
If you are replacing your flooring and budget isn’t an issue, does a specific type of flooring add more value? Of course! Here are a few types of flooring that are great investments to your home:

·        Hardwood- Hardwood floors have a natural beauty that serves as a great addition to a home’s interior. Any living area, kitchen, or bedroom can benefit from hardwood flooring. They are a smart investment that has the potential to give a home a polished look as well as boost the overall value.

·        Bamboo- For sustainable flooring that is durable and requires a low amount of maintenance, bamboo flooring is a great choice. They have the ability to give your home a modern appearance, and they are naturally resistant to moisture and bacteria.

·        Cork- Cork flooring is environmentally friendly since it is sustainably harvested from the bark of the cork oak tree without harming it. Cork floors are antimicrobial, sound-resistant, and great for providing a soft and cushiony feel.

·       Parquet- Parquet flooring is a wonderful way to add contrast and texture to a floor. Popular woods for solid parquet flooring include oak, walnut, cherry, and pine. Stains and finishes enhance the contrasting colors and grains of the different woods.
It’s a good idea for homeowners to know the true value of your home before and after your new flooring is installed. You can obtain a free home valuation report from Neighborhood IQ to find out how much a property is worth, especially after your fall and winter home improvements and maintenance projects are completed. Also, the Home Loan Advisor can analyze your property, current market conditions, local market comps, and other variables in our proprietary algorithm, and match you with potential lenders.


Thursday, December 19, 2013

Ways to Keep Your Home Warm this Winter

Depending on where you live, winter can unfortunately mean a cold home and less comfort. It can also mean that it’s the time of year for sky-high energy bills. This is especially true if your house has lots of air leaks, poor insulation, and dirty air filters, to name a few things. Luckily, there are things that you can do to keep your home nice and warm, and you do them while promoting a greener environment.
This winter, keep your house warm, your energy costs lows, and your comfort level high with our tips:
Seal gaps and cracks. One of the main reasons for heat loss in your home is gaps and cracks in your windows and doors. They are especially evident if you own an older home. You should seal and plug all of the gaps and cracks by using weather stripping. Try using a gap filler to seal any cracks in the walls. You can also seal the edge of all window sills with a water resistant sealer. Also, use door snakes at the bottom of doors. A rolled-up towel can suffice for an effective door snake.
Install insulation. A home that is well-insulated can save almost half as much for heating and cooling your home, so it makes sense to install insulation. You can either do it yourself or hire a home contractor to do it for you. It will be well worth it since insulation will pay for itself in the form of low energy bills.
Cover windows with heavy curtains. Since a great deal of heat escapes from your home through uncovered windows, use heavy curtains. Lined curtains work even better to insulate the windows and keep the warmth in your home.
Replace air filters in your central heating/cooling system. Dirty air filters and dust accumulation around the filter slot can make your system sluggish, and it will have to work harder. To reduce energy and extend the life of the heater, replace the air filter and clean around the filter slot.
Insulate the pipes. In temperatures that are below freezing, it is crucial that pipes that carry water be insulated. You can wrap external hot water pipes with fiberglass insulation or lagging. You can also use pre-molded foam rubber sleeves to wrap the pipes.
Invest in heater maintenance. You should get your heater professionally services every two years. This will keep it running efficiently and extend its life. Or, invest in a replacement heater if it’s time for a new one.
Improvements to your home’s insulation and comfort level during the cold and hot months can raise your home value. Be sure to consider the advantages of knowing the true value of your home! You can obtain a free home valuation report from Neighborhood IQ to find out how much a property is worth. Also, the Home Loan Advisor can analyze your property, current market conditions, local market comps, and other variables in our proprietary algorithm, and match you with potential lenders.

Thursday, December 12, 2013

Similarities between Buying a First Home and the First Day at College

Do you remember your first day of college? The excitement, setbacks, and anxieties you experienced? Remarkably similar emotions are experienced by first time homebuyers. 
Buyers are always looking out for a perfect home. The sky is the limit as far as expectations are concerned. They hope to find an affordable home with the best schools nearby, a huge yard, and many more things.  

New college students have great expectations. They’re motivated to use money judiciously, tackle the challenges of higher education, attain high scores, and work hard to subsist. 

There are some additional similarities in the experiences of first-time homebuyers and first-time college goers:


Students beginning college move out of home into new environments away from friends and family.  They take on additional responsibilities and get set to enjoy their freedom.  It’s a huge transition phase.

New buyers consider purchasing a home as a transition into adulthood.  Homeownership involves a major commitment with regards to money and time.  With a home purchase, buyers get set to plant roots in a new community.  They can now finally unpack all boxes and settle into a place called home.  They get ready to accept responsibilities related to home payments and maintenance.

Buying a home and going to college are both major accomplishments which represent maturity.


The process of getting admission into a suitable college sometimes takes months.  Teenagers are required to prepare for qualifying tests, apply, and wait for acceptance.  Then there’s paperwork and orientation. On the day college begins, they’ve got to move around an unfamiliar campus in search for their classes. Getting into college and adjusting to it can be a really stressful process likely to test both confidence and patience.

Buying a home is a time-consuming process too which requires a lot of patience.  Buyers need to get their loan pre-approved before beginning their house hunt.  Focusing on the correct home requires great persistence in attending to open houses, searching online, and staying connected with realtors.

Bids can be turned down.  Even after the offer is accepted, a lot of work is required to complete the buying process.  There are inspections, loads of paperwork, and a lot of communications with the lender.  Buyers feel quite exhausted and long to hold the keys of the home in their hands.

There are hordes of stressful steps involved both in getting into a home and into a college. Both processes require tremendous persistence.

The Learning Curve

Students new to college struggle to remember acronyms which refer to classes, departments, buildings and books and keep referring to their orientation manuals. They face many other newbie challenges. Eventually they get familiar and then things aren’t quite as tough.

First-time homebuyers also often get tied up in knots when they meet their lender to discuss loan options and interest rates. All the numbers and real estate jargon can be truly mind-boggling. Making long-lasting decisions without being clear can be a real challenge. It takes a while for everything to get sorted out smoothly.

When you’re new to college or to the home buying arena, it’s of utmost importance to study the topics and processes as best as you can. And ask questions – lots of them. Speaking to experts is one of best ways to get the right direction pointed out.  This helps in getting the confidence to move forward.  

Be sure to consider the advantages of knowing the true value of your home. You can obtain a free home valuation report from Neighborhood IQ to find out how much a property is worth, especially after your fall and winter home improvements and maintenance projects are completed. Also, the Home Loan Advisor can analyze your property, current market conditions, local market comps, and other variables in our proprietary algorithm, and match you with potential lenders.

Thursday, December 5, 2013

The Costs of Buying and Owning Investment Property

Buying and owning investment property is a lot like buying and owing a residence. While you want to get a good deal on investment real estate, you should avoid cutting back on the property simply because you are not going to be living there. You don’t want to have unhappy tenants who call you for repairs all of the time. Also, you could very well end up living in the residence yourself. The point is not to skimp.

Before you sign on the dotted line, you should get a professional home inspection so that know every flaw the property has. Whether you are purchasing a house, condo, or small building with a few rental units, you’ll want to get an inspector that specializes in the type of property you want to buy. Remember that the bigger the property, the more potentially expensive problems you may face.

In addition to mortgage and real estate taxes, here are some costs that you may have to pay when you buy and own investment property:

Homeowners association fees and monthly maintenance fees: If the rent you are charging does not cover these fees, they are ultimately your responsibility.

Utilities: While your tenant will pay most of these directly, other utility costs will be included in your tax bill. You also may be responsible for paying the water bill and other costs.

Landscaping: Be sure to list what the tenant is responsible for if you are renting out a single-family house. If you are renting out a condo, the landscaping probably won’t be your responsibility. You’ll pay a maintenance fee every month for the management company to take care of it.

Repairs/maintenance to the exterior and interior: This includes repainting in between tenants, carpet cleaning, and any damaged parts of the unit.

Getting the property in rentable condition: Perhaps the biggest cost of buying and owning investment property involves the repairs that are necessary to get the property in rentable condition. You should take a lot of time to figure out the cost of repairing the unit after getting a professional home inspection.

Be sure to consider the advantages of knowing the true value of your home. You can obtain a free home valuation report from Neighborhood IQ to find out how much a property is worth, especially after your fall and winter home improvements and maintenance projects are completed. Also, the Home Loan Advisor can analyze your property, current market conditions, local market comps, and other variables in our proprietary algorithm, and match you with potential lenders.

Thursday, November 21, 2013

7 Habits Every Home Seller Should Have

Putting your home on the market and getting it sold for a decent price is not easy. In fact, selling a home can be quite stressful. However, you can reduce your stress levels by following these highly effective habits.

1. Be Realistic

Your neighbor probably sold their house for top dollar last month, but it doesn't matter now. You didn't sell your home when the market was at its peak. Right now, your only concern should be getting your home sold for a reasonable price and that won't be possible unless you are realistic.

When selling a home, don't expect to recover every cent you spent on it. It is not always possible. So be realistic about the value of your home, the quality of your neighborhood and current market conditions. There is hardly anything that you can do to improve the neighborhood or the market. Nonetheless, you can improve the way your home looks. Make it clean and repair the parts that need to be repaired.

2. Listen to suggestions and advice

You probably don’t have much experience in selling a home; however, your agent has. A good agent sells many homes a year so they should understand the process better than you. Listen to their advice. Of course, it is nearly impossible to do everything that they suggest. Nonetheless, listen to them and do whatever you can to present and market your home in the best possible way.

3. Be Available

You don't have to be physically present during showings. In fact, the presence of the home owner may make the buyer uncomfortable and force them to rush through the process. Nonetheless, your home should be easily accessible to buyers. You must be willing to vacate the premise whenever your agent asks you to so that potential buyers can view it. This improves your chances of selling it.

4. Be Smart

Knowledge is power, so gain as much information as you can about the home buying and selling process. Of course, you are not buying, but you should still be able to know what the buyers are going through. Also understand the real estate market. If you have doubts, ask your agent to clarify them.

5. Don’t let emotion cloud reason

All of us are emotionally attached to our home. We are also proud of it and expect it to be sold for a price that is reflective of our pride. However, market conditions and location often determine the price. If you don't get the price you are asking for, you should be willing to lower it.

6. Be Reasonable

While selling a home, price shouldn't be the only consideration. You must also take into account the buyer's eligibility for a loan. If buyers request for repairs, you should consider every aspect closely. Don't risk losing a potential buyer by refusing to repair a leaky faucet or something just as trivial. That doesn't mean that you have to give into every demand. Be reasonable. That's enough.

7. Ask Questions

During the selling process you may hear many terms that you don't normally use on a regular basis. If you don't understand anything, don't hesitate to ask for clarification. 

These seven habits will not only reduce your stress levels but also increase your chances of getting a good price for your home.
To assist you in pricing your home to sell, you can get a free home valuation report from Neighborhood IQ and find out what your home is really worth.
Thinking about refinancing? You can find lenders that can help you with a refinance on your home loan. Let The Home Loan Advisor help you today!

Thursday, November 14, 2013

Budgeting Mistakes of First-time Home Buyers

The experience of purchasing your first home can be both exciting and stressful. Like in all first-time situations, the probability of committing “newbie” errors is high. This especially happens in the case of the budgeting of funds to cover all expenses before and after the house purchase.

Some typical budgeting mistakes are made by buyers going in for their first homes. Though these errors are understandable, they can prove to be quite costly. If you’re aware of them, you have better chances of avoiding them.

Lack of affordability knowledge

Many buyers envision their first home as a castle or a dream house. But a first home most often has very few features of the dreams of young home buyers. You need to have a clear idea regarding how much you can afford to spend on your home before you begin shopping.

Make it a point to invest more time in researching for suitable financing options and understanding the effect of debt ratios on mortgage approvals rather than in judging design preferences and home styles. Once you know what exactly you can afford, you’re in a better position to make a judicious choice from the options available.
Incorrect assumptions

It’s true that everyone is thrilled to get a deal. But it’s highly erroneous to assume that every foreclosed or short-sale property offers a fabulous deal. This may be true in some cases but in the real estate market, a property is only worth as much as a buyer is ready to pay for it.

Experts in the real estate field know that it’s quite likely that properties which appear to be bargains often have serious HVAC, plumbing, structural, or other problems.

Inappropriate buyer's agent

A seller's agent has the responsibility of getting the best deal in terms of the highest sale price possible for a home seller. Similarly, a buyer's agent needs to represent the buyer's interests and try to get a great deal from the buyer’s perspective.

If you pick an inappropriate buyer's agent to represent you, you could be down by thousands of dollars by the end of the transaction.

Underestimating total costs

If you do not correctly gauge the real costs associated with home ownership, you’re in trouble. When you’re staying on rent, you can call your landlord when anything goes wrong. But when you become a home owner, this option is eliminated. The complete responsbility is on you.

So even if you’re buying a brand-new house, some things may go awry and you’ve got to solve all issues yourself. You would generally need to spend money to resolve the problems because you cannot be a master electrician, plumber, and everything else yourself. So make sure you plan for repairs, maintenance and emergencies. Also, remember to budget sufficient funds to take care of moving expenses.

No contingency clause in sales agreement

Today, most standard Sales and Purchase Agreements contain contingency clauses. While sellers would prefer not to have these clauses, they are of utmost importance from the buyer’s perspective. If you do not receive the required mortgage, the purchase will not be possible.

If you do not have a clause regarding this in the agreement, you don’t have a way out and your seller can refuse to return your deposit. Also funds spent for things like land surveys, appraisals and home inspections are forever gone. So make sure you have contingency clauses in the Sales Agreement before signing on it.
Don't make the mistake of not knowing the value of the home you want to purchase! Neighborhood IQ offers a free home value report that will tell you what a house is worth so that you can budget accordingly. Also, the Home Loan Advisor can analyze your property, current market conditions, local market comps, and other variables in our proprietary algorithm, and match you with potential lenders.

Thursday, November 7, 2013

Top 5 Reasons Why It’s a Good Idea to Sell Your Home Now

Selling your home is a big decision. Your house is most likely one of the most expensive investments you’ve ever made, and deciding to sell involves a weighing of pros and cons. Some sellers are wary of the unstable housing market, but with the proper preparation and information, it could be the best time for you to sell your home since property is at all-time lows right now.

There is a difference between needing to sell and wanting to sell. If you must sell your house due to financial difficulties, it is entirely understandable. However, if you simply have the desire to sell, now is a great time to begin the process. Consider the following reasons why it’s a good idea to sell your house now:
Buyers are serious. There is currently a strong demand in the housing market, and buyers have cash to accommodate the market. Houses are selling at increased paces the last few years, so take advantage of this time when home buyers have the money to spend and are serious about buying.
You are having financial trouble. If you are having trouble making ends meet with your mortgage and the other costs associated with owning a home, if may make perfect financial sense to consider housing that costs less. Maybe you have too much consumer debt or you are facing events such as medical problems or divorce. Whatever the reason for your financial problems, selling your home may be just what you need right now.
You are retiring. You may have too much space than you really need, or perhaps you can’t afford the house payment because you are not working full-time anymore. You can free up some of the money that you have put into your house and use it to move to a less expensive home. Or, you may want to consider renting.
The housing inventory is low. This means that buyers have a fewer number of homes to choose from. If your home is a quality property, it is more likely to stand out among the small amount of competition.
You need to move for your job. Depending on your aspirations, you may get a promising career opportunity or promotion. Sometimes, this requires you to relocate. If you feel that it is a good move for your career financially and personally, it could be the perfect reason to sell.
Remember that selling your home takes patience and perseverance. Because there are so many properties for sale these days, it may take some time to get an offer. You should consider all offers carefully, especially if you are in a desperate financial situation. If you don’t have a strict timeline, be patient and the right home buyer will make you the appropriate offer.
When you decide to sell, you will definitely need to know the value of your home so that it can be priced accordingly. Find out worth of your home with a home value report from Neighborhood IQ. It’s absolutely free!

Thursday, October 31, 2013

Finding the Best Loan Officer

Buying a home involves a lot of players on your real estate team, and a loan officer is one of them. Unfortunately, in the mortgage industry, it only takes one bad loan officer to mess up a deal. The loan officer is the front person for a mortgage company. You will interact through them through the entire loan process, so it makes sense to get the best loan officer you can find.

Good loan officers have been in the real estate business for many years. They rely on repeat business, and one way to do this is to establish a good long-term relationship with a realtor. In fact, one of the best ways to find a good loan officer is by asking a realtor for a referral.

It’s up to you to find the best loan officer when buying a home or refinancing a current mortgage. The following information should help you to find a skilled and qualified loan officer:
Qualities of a good loan officer
·         They look out for clients’ best interests before their own.

·         They are professional.

·         They are helpful in answering your questions about the home buying/refinancing process.

·         They have excellent salesmanship skills.

·         They can effectively communicate.

·         They are friendly.

·         They are good with numbers.
As stated earlier, loan officers are the front people for mortgage companies. There are no education requirements and you don’t need a degree to become a loan officer. There is a required test and annual certification process, and a loan officer must meet the state licensing requirements. Other than those things, almost anyone can be a loan officer. A loan officer needs salesmanship skills as well as the ability to effectively communicate. It’s also helpful if they have a good grasp with numbers.

Questions to ask your loan officer

·         How long have you been in the business?

·         What is your availability?

·         What lenders do you use?

·         How much money will you make off of my loan?

·         What are the lender closing costs?

·         What is the APR and interest rate for this loan?

·         What is the rate lock policy?
In the midst of selecting a loan officer, consider the advantages of knowing the true value of a home. Be sure to obtain a free home valuation report from Neighborhood IQ to find out how much a property is worth before you buy. Or if you are refinancing, it helps to know the value of your home.

The Home Loan Advisor can analyze your property, current market conditions, local market comps, and other variables in our proprietary algorithm, but we match you with potential lenders who have products that may help you and provide you with a sense of stability.

Thursday, October 24, 2013

10 Most Costly House Problems

Every homeowner experiences problems with their home sooner or later. The intensity of these problems depends on the level of maintenance the house has received over the years. Whether you are buying a home or selling your current house, you may want to check for certain problems that have been left unattended to. If you wait until after a home appraiser or inspector flags the issues, it could result in a lot more money out of your pocket. So, don’t wait until closing to fix the problems or address them with the owner.

Some of the following home problems are so common that many homeowners simply learn to live with them. However, the problems can be avoidable by providing proper maintenance and checking out the most common ones periodically.
Here are 10 of the most common problems that homeowners encounter while buying or living in a home:

1.       Problem roofs. The roof of your home is one of those things that you don’t pay much attention to. That is, until you see a leak. The roof can be one of the most costly things to fix, so use binoculars to check for warning signs. Also, get a professional roof inspection before putting your house on the market.

2.       Water in the basement. These problems should be solved as soon as possible to minimize damage that can include mold and mildew.

3.       Deferred maintenance. Keeping your home in top condition is an investment that will return the more you spend.

4.       Flaws in the foundation. Older homes and even newer ones can settle unevenly. Look for sloping floors and cracks in the foundation walls as well as above windows.

5.       Poor ventilation. The effects of poor ventilation on your health are huge, so make sure places like the attic are properly vented in order to avoid mold or roof rot.

6.       Faulty plumbing. It’s crucial to keep a close eye on the water supply system. Trace leaks to sources immediately, and replace corroding pipes.

7.       Defective HVAC systems. If you have just bought a home or you are thinking of selling your current home, it’s a good idea to contact a HVAC contractor for an inspection.

8.       Faulty gutters and downspouts. Constant checking is needed to properly maintain the gutters and downspouts in order to avoid water damage.

9.       Drainage problems. Homeowners often overlook landscaping issues which can which allow water to drain into the house’s basement or crawlspace. Water damage can be costly to repair and lessen the value of your home.

10.   Faulty wiring. Many electrical problems are caused by homeowners who try to do the work themselves or hire someone unlicensed. Look for dangling hotwires, open receptacle boxes, and aluminum wiring.
In the midst of checking your home or home-to-be for common problems, consider the advantages of knowing the true value of the property. Be sure to obtain a free home valuation report from Neighborhood IQ to find out how much a home is worth before you ultimately buy or sell! Also keep n mind that 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 who have products that may help you and provide you with a sense of stability.

Thursday, October 17, 2013

Tips for First Time Homebuyers

Thinking about buying a home for the first time? It may seem like purchasing a house is rather daunting, but if you are armed with the proper steps that you should take, the process will be easier. You want to get the most that you can out of your purchase without being overwhelmed.
It turns out that finding the right house is only the beginning of the home buying process. You need to invest the time necessary in order to avoid sloppy shopping and financial disaster. Your goal is to be happy with the home that you decide to buy.

Here are some steps that you should take in order to ensure a successful buying experience for first-time home buyers:

1.       Decide whether or not to buy. Does a home purchase fit into your financial puzzle? Figure out if now is a good time to buy a home. If you’re renting, be sure to weigh the pros and cons versus owning your own home.

2.       Get your finances in order. Assess your budget and survey your spending. Be honest about your financial situation and trim the unnecessary spending from your budget.

3.       Figure out what you can afford to buy. Take into consideration the numerous costs associated with owning your home such as property taxes, homeowners insurance and closing costs. Accumulate your down payment and figure out the size of your mortgage payments.

4.       Know and improve your credit score. Lenders try to determine your credit risk level according to your credit score. A better score may mean better and cheaper loan options.

5.       Choose a mortgage. Should you get a fixed-rate or adjustable-rate mortgage? Or would a balloon loan or hybrid loan be better for you? Work with a good, straightforward mortgage lender that has your best interests in mind.

6.       Decide what and where to buy. Location and value are the most important aspects of buying a home. The price you pay for your home as well as where you home is located are factors that greatly affect your home’s value.

7.       Get a real estate team. A good lineup includes a real estate agent, real estate broker, lender, property inspector, tax advisors and escrow officer. You complete the all-star team!

8.       Negotiate. Good negotiators base their strategy according to the price of a property, how long it’s been on the market, and how motivated the sellers are. Don’t be afraid to play ball and push the envelope.

9.       Inspect the property. Skipping this step could be extremely detrimental, as this protects your investment. Don’t find out about foundation flaws or poor plumbing after you’ve bought the home.

10.   Close the deal. A closing officer will prepare the transfer of the title. Keep in mind the many closing costs that are associated with this step.
Following the above steps could make the difference between a successful sale and a disaster. They can also assist you in deciding if buying a home is for you, and if now is the right time for your purchase.

To make sure that you have successfully paid a fair price for your property, you can get a free home value report from Neighborhood IQ to learn the value of your new house.

Thursday, October 10, 2013

Home Refinancing 101

If you’re considering getting your home refinanced, you need to know what exactly is involved in the process. This is an important decision and if you go about it in the right way, you’ll be able to save a lot of money. But if you take one wrong step, it might prove to be a really expensive mistake.   Here are some basic concepts and information about how you need to prepare yourself.

A home refinancing transaction is one in which you swap out an existing loan for a new and more favorable one. The old loan is paid off with the amount received from the new loan. Sometimes borrowers apply for an extra amount while refinancing to get some equity out of an asset. This is called "cash out" refinancing.

Advantages of home refinancing

By going in for refinancing, you can better your financial situation in many ways. The benefits include lower interest costs which result in a reduction in the amount that you are required to pay monthly. You can reduce your risk and get cash out which can be used for other necessities. When you opt for home refinancing, you can consolidate debt and probably get some tax benefits as well.

Home refinancing and associated costs

Just like everything else in this world, home refinancing is not for free. You will need to pay fees to the new lender to make it worthwhile for him to disburse your loan. You may also have to pay for legal documentation and filing, appraisals, credit checks, and other related things.

Understand that even though a lender may advertise a loan as one having no closing costs, you will be paying those fees as part of other charges. This generally happens through a higher rate of interest.

Is home refinancing worthwhile?

Before you make a final decision regarding whether or not to go in for home refinancing, you need to consider both the plus and minus factors of your old mortgage and the proposed new one. In normal circumstances, home refinancing is a sensible move when there is a lower rate of interest or a lower monthly payment. If you can optimally restructure debt or get your loan term shortened, it’s definitely worthwhile.

Once you’re clear of all costs involved, you need to look at how much you’ll be saving over a period of time and how long it will take you to recover the associated up-front costs. An important consideration is whether you plan to live in the home and keep the loan for long enough so as to make it worthwhile.

Home refinancing makes real sense when you reap sound benefits from a new loan. Some guidelines that it might be a smart move are:

·         Rates of interest are substantially lower than your earlier mortgage

·         You plan to keep the loan and live in the home long term

·         Your credit rating has seen an upward movement since you got your earlier loan

·         You are eligible for an amortizing loan in place of an interest only loan

·         You can move out of a high risk mortgage

Home refinancing offers a lot of benefits but it can be a bad idea if it leads to increasing your risk and wasting money. It is best to understand the worth of your house before you decide to get a refinance. An online home value report can be generated at Neighborhood IQ for free. You also need to make sure that you’ll be able to recover all the refinancing costs before signing on the dotted line.