Paying off a Mortgage before Retirement

As we get older and closer to a retirement age, it is important to have a comprehensive retirement plan in place. This includes a steady flow of income of which you will survive on after retiring. To achieve this, it often requires you to reduce outstanding dues, debts, loans, or mortgages as much as possible.

Mortgage payments that are high will eat into your retirement plan, and this may lead to a financial future that is not as secure as you intended. This is why most people prefer to pay off their mortgages before retiring, or reduce the outstanding balance to manageable levels.

There are various ways in which one can successfully pay off their mortgage before retirement is apparent. You will still need to pay associated fees like home owners associations and property insurance taxes. However, eliminating the principle and interest from you list of bills before retiring will significantly improve your income. Paying off a mortgage depends on a lot of factors including:

• Current budget and income
• How deep into payment you have reached
• Loan terms and balances

It is important to clearly map out your budget and income to see places you can adjust to provide increased payments towards the mortgage. This usually results in increasing monthly payments so that the duration is shortened.

Refinancing is a possible option for reducing the period of repayment. Refinancing for a shorter term may reduce your paying period by five or more years depending on the amount you are capable of comfortably paying. Refinancing does have additional closing costs and transaction fees.

Some people will be better off paying extra costs in their current payment scheme rather than refinancing and then incurring closing costs. One of the most effective ways of paying off mortgages before retirement is through extra payments. Add extra payments during the course of payments or better yet, pay lumps of money after receiving reliefs like tax-deductions or refunds. This will have a big difference in your overall interest. Your outstanding balance will also be significantly reduced. Adding extra payments will definitely give you the liberty of being mortgage free a few years before the original plan. It also goes a long way in reducing the total amount of interest you end up paying.

It is important to contextualize your mortgage payoff decision. This does not only set defined targets and commitments but also clearly exposes impractical solutions. Eliminate other side-debts that are not tax-deductible before you begin paying off a mortgage. You may want to see an experienced financial planner and lender to discuss your status and options.

Paying off mortgage interests and principle before retiring is very important. The steady income used in payments during working years is no longer available, and paying mortgage from your pension plans may be strenuous on your budget. It is also important to ensure you make all the necessary payments in time to avoid rising interests and penalty fees that may extend your owing period.

Mortgage Applications and Trigger Leads

You applied for a mortgage loan from a lender and suddenly, out of the blue without any initiative from your end, another lender calls. Now why did this happen? Well, you became a trigger lead. Read on if you don’t want to get caught off guard.

 

This is what happens: You decide to buy yourself some property, so you get in touch with a mortgage broker whom a friend or family member recommends. In all probability, this mortgage lender is very reputable and you may have even done past business with him. You make a loan application and get your preapproval letter.

 

Suddenly, another mortgage lender calls. He might say his company is affiliated with some credit bureau or put forth another random reason for calling. You get suspicious and wonder how he knew you’re going in for a mortgage.

 

When you make a mortgage application, your lender first wants to ascertain your credit rating. So he gets ahold of your credit report. As soon as he does this, an inquiry is triggered.  Very often, the credit bureau goes ahead and sells your details to different mortgage companies. Since it's not illegal for bureaus to make money by passing on your details to other vendors, they make the most of it. This is known as a trigger lead.

 

Since you’re at the threshold of what is possibly your life’s biggest transaction, you surely wouldn’t want loan reps calling up and offering phony rates of interest. Make sure not to buy over a phone call. Instead of dealing with some telemarketer, try to deal with trusted professionals.

 

Here are some tips to stop harassment due to trigger leads:

 

• Enlist your phone number and name on the Do Not Call List at the national level. You could also register using a cell phone number. Make sure to do this a complete month before applying for a loan since it becomes effective after 31 days. This order will be valid for 5 years, so ensure that you re-register after the period ends.
• If you don’t want mortgage lenders to send direct mails, you need to register yourself at the Direct Mail Association. This will cost you a dollar whether you register via email or online, and you can use your credit card for the payment. The registration is valid for five years.  DMA puts out its lists quarterly and it’s better to register early. It may take a while for your registration to become effective.
• If you register for Opt Out Prescreen, you are assured that 4 credit bureaus do not sell your details in the form of a trigger lead. The names of the bureaus are: Experian, Innovis, Equifax and TransUnion. As per the Fair Credit Reporting Act your name can be sold, but when you opt out, trigger leads are stopped for five years.

It’s been heard from lenders that when you choose to opt out, you can up your credit score by 10 - 15 points. To get permanent relief, you could email your registration. This is also available at the OptOut Web website.

 

How to Find the Right Tenant for Your Property

It’s not easy finding a good tenant who will pay their rent and take care of the property. In order to protect the home you are renting out, it’s important to take your time when finding a tenant. This way, your property will be well-maintained, reducing a lot of costs involved in repairs. There’s nothing worse than putting your trust in a tenant who winds up ripping you off and damaging your home.

So what can you do to find a good tenant for your property? We’ve got some tips:

Get a credit check

It is important check the financial status of the prospective tenants in order to make sure that they are financially responsible. Such a tenant will be able to pay the rent and security deposit because they have income coming in. You can verify this by requesting a look at their pay stubs, or you can call their employers to confirm their employment status. It is also good to look at the amount of debt they have by running a credit check. You can alter the amount of the security deposit based on their credit.

Carry out a criminal background check

You don’t want a tenant who is involved in criminal activities. By performing a criminal check, you will be able to find out if the tenant is involved in minor or major crimes. All you need is the name of the tenant and date of birth to get this information. Note that those with criminal records may not give you the right information, so ensure they provide you with valid ID for verification purposes. 

Have a look at their rental history 

To verify that you do not get a problematic tenant, talk to their former landlords. This will help you understand how they pay their rents, how they handle themselves in the property, their cleanliness level and whether they follow the rules set in the property. Also, if the prospective tenant is a first time renter, make sure you have a cosigner for the lease. 

Consider their lifestyle 

On the tenant application form, you should check the tenant addresses and employment history. Check to see whether they have a tendency to move from one job to the other or move from one property to the other. This can help you to know whether they are likely to be long term tenants. 

Bottom line

By considering the above factors, you will get good tenants who will rent your property for a long time and ensure that your property is maintained properly. You will also end up saving money and time involved in evictions, nonpayment of rent, and damages to your property. 

Buying a Foreclosed Home

Purchasing property can be costly, yet it can prove to be worth the expense in the long run. Many people have turned to renting their home, and the current economic situation isn’t likely to make matters easier. It’s probably for this reason that foreclosures are gaining such popularity.

Foreclosures are those properties whose owners couldn’t afford to make mortgage payments and which they were forced to surrender to meet their debt obligations. Foreclosures are popular because they are usually a cheaper investment.

Here are some tips to help you find a foreclosed home and begin the buying process:

Locate some foreclosed property scheduled for sale. You can find properties by scanning the classified section of a newspaper or utilizing the internet.

Utilize the services of an attorney or real estate agent. Their expertise will help you to gain an understanding of the foreclosure proceedings in the area before taking any action.

Research the property. It will prove necessary to investigate the property at hand to determine its condition and market value, taking the time to research previous ownership and any potential problems such as existing liens.

Figure out the financing. You will need to communicate with the trustee of the foreclosure sale to determine the minimum bid before figuring out how you intend to finance the property. You might consider assuming the current loan.

Attend the foreclosure auction and make an offer. It is possible to submit a sealed bid after the sale.

Purchasing foreclosures can prove to be quite complicated, especially if you are unaware of the regulations governing the area on the matter. The following are some tips to help you in the foreclosure buying process:

It is important to scrutinize your budget carefully. Too many people make rash decisions about foreclosures because of the small price tags. It is necessary to take into account various factors that might encroach on your finances, such as any repairs that might prove necessary.

Don’t make any decisions before inspecting the property yourself. It is never advisable to buy a property you haven’t seen, this allowing you to determine if the condition of the house is worth the value being presented.

Consider the neighborhood. A home is more than the house in question and the right home should exist within the right neighborhood, one expected to take factors like crime into account before making this crucial investment.

Take into account how long the house was empty. This will determine the amount of damage it has incurred and the repairs that will prove necessary.

Remember that acquiring a profit out of such an investment will take time. It is common for buyers to purchase foreclosures with the aim of selling them off quickly for a profit. However this is unlikely to happen, especially taking into account the various states quick to penalize individuals that neglect their property. If you want to buy foreclosures for purposes of selling, you’ll need to take into account the considerable time required for repairs and maintenance. 

 

Here’s What Not to Do When Refinancing

Are you considering a refinance for your current mortgage? Then you need to be sure that you understand the mistakes that you need to avoid before you refinance your mortgage with any lender.

Here’s what NOT to do when refinancing your mortgage:

Not checking out all of your refinancing options - Before you decide to refinance, you have to shop around and learn what your options are. You don't want to make the mistake of not shopping around and simply staying with your current lender. This can lead to the wrong refinancing option for you in particular. Shopping around will help you ensure that you are definitely getting the best deal possible for your needs.

Signing any loan documents without first carefully reading over them – It’s wise to review every document for refinancing before you close the deal. Otherwise, you will easily find that there was some essential information that was missed.

Not understanding what your break-even point will be for refinancing - Are you aware of how much time you will need to recoup from the upfront transaction costs? You need to know when you will break even and even when you will start getting ahead so you can make sure that you are not going to be in trouble with your mortgage if the break-even point is too far into your future. 

Not providing the mortgage company with the refinance documents on time - If your lending institution is requesting that you provide them with additional documentation like verification of employment or income and expense statements, then you have to be sure that you get them to them right away. Delaying in providing these can lead to costly delays that you could have avoided if you had just gotten them in on time. 

Not having the estimate of your mortgage refinance put down on paper - Lenders and brokers are required by law to give you a written statement for the fees will be for refinancing. You want to get this so you can have it with you at the closing to ensure you get the deal that you agreed to.

Ignoring your credit history-The most common mistake that homeowners make is ignoring their credit history. You should be aware of your exact credit history before refinancing. Many people do not know whether some mistakes were made on their credit reports and ends up taking high interest rates. This high loan and credit fees ends up disqualifying them from mortgages or even missing their chance of buying new homes or refinancing. The best way to avoid this is to always know your credit score as well. Also, check your credit report regularly to make sure there are no mistakes.

When Should You Drop Your Selling Price?

You want to get the best price for your home, naturally. You’ve put it up for sale, focused on things like curb appeal to make a good first impression, and done research for other prices in your location. But despite all of your efforts, what if your home has been sitting on the market and/or you have no showings scheduled? It may be time to evaluate your selling price.

When you initially list your house, it will be a new listing that may get lots of attention at first. But that can change quickly, and as the weeks go on, you might consider the price.

There are many reasons to lower your selling price:

There are fewer buyers looking at your home. If the house has been on the market and there have not been any interested buyers inquiring about your property, it may be time to reduce the price a bit. Many potential buyers may think that your home is overpriced a bit, and taking it down can bring in new buyers.

You have to sell because of a looming deadline. Maybe you’re moving to another state and need to sell before you leave. Consider lowering your asking price to get potential buyers interested.

You don’t have any offers coming in. Maybe you’ve given many tours of your home to potential buyers but no one had made you an offer. It’s possible that the only thing stopping them is the too-high price, so you may want to take it down.

You can’t afford any upgrades. If you were planning to do some improvements like painting, new carpet, etc. but now you simply can’t put out the money for these things, you may want to consider lowering the price. You want the price to be fair considering what the home may be lacking.

Your price is too high for the competition. If your home has been on the market for a month or so and you don’t have any potential buyers, it’s time to give the price a second thought. Staying in touch with the competition will ensure you get the best price for your property.

It’s understandable that you want to get a certain price for your home, but you must be realistic about the market and the condition of the house. It’s a good idea to keep in close contact with your agent throughout the entire process so that you know where the sale of your home stands.

Summer Landscaping Tips

Now that summer is here, it’s a good idea to look at the landscaping around your home. Depending on what part of the country you live in, summer can be one of the most challenging seasons for maintaining landscaping and lawns. The hotter it gets, the more detrimental it is for your plants and lawns because the soil dries up. Plants have the tendency to wither if they are not hydrated properly. This can be a challenge if you live in an area where water restrictions are imposed.

Why is landscaping so important? It creates curb appeal that can help you to sell your home. It can also add value to your property, which is always a good thing. However, the wrong landscaping and/or unattractive, withering, and dry landscaping can prove to be detrimental to the sale of your home.

Consider the following tips to keep your home’s landscape hydrated and looking lush and beautiful during the summer months:

·        Look for signs of plant and lawn dehydration early. It is essential to determine whether or not your landscaping is showing signs of dehydration. If plants are wilting and growth is slow, you should tend to your landscaping immediately. Other signs of dehydration include yellowing leaves, browning leaf edges, and the upward curling of grass blades.

·        Mow the grass frequently. Also, mowing the grass as tall as you can allows the grass to draw moisture from a bigger volume of soil, resulting in the need for less watering. Mowing the grass to heights of three to three and a half inches means that the lawn has a better chance of surviving a long drought period.

·        Water your lawn and plants during the appropriate times. The best time to water a lawn is from 6am to 8am when water pressure is highest and water evaporation is lowest. You should not water your lawn during the middle of the day and windy conditions. When you know the best time for irrigation, you can conserve water.

·        Keep the dirt near the foundation of your house moist. When the dirt is dry, the foundation can have the tendency to crack. This can be very costly to repair, so make sure the dirt is semi-wet.

·        Control the growth of weeds. First, inspect for weeds to spot any growth early. Next, look into lawn treatments for weed control. You will need a pre-emergence weed control treatments and post-emergence treatments.

You can still have a beautiful lawn and landscaping that will wow potential buyers this summer. Be smart about your solutions to keep your landscaping looking great during the hot months!