Should You Refinance to an Adjustable Rate Mortgage?

An adjustable rate mortgage (ARM) is a type of mortgage where the interest rate charged on the outstanding balance varies based on a specified schedule. The interest rate is initially fixed for a given period after which the rate is set periodically. There are many advantages associated with the adjustable rate mortgage especially when compared to the fixed rate mortgage. Below are some of the reasons why you should consider refinancing to an adjustable rate mortgage.

You want a lower interest rate

A lower initial rate is charged on an ARM when compared to the rate charged on fixed rate mortgages. While the initial rate is fixed for a given duration of time, the interest rate is much lower than the rate charged on a fixed mortgage at any given time. This works to your advantage as it frees up some money at the beginning of your loan term. This money can be useful in taking care of other expenses or can be invested in an income generating project.

You’re selling soon

An ARM is ideal for home buyers who wish to sell in the near future. For buyers who foresee a job transfer to another location or a need to upgrade to another house, for example when starting a family, the lower ARM initial interest rate provide a better and cheaper option. Once the house is sold, the loan can then be paid off in full. It is important to note that some contracts stipulate that a penalty is charged if the loan is paid off early. This should be considered while refinancing the mortgage.

You want to improve your financial standing

An ARM mortgage is ideal for homeowners who want to improve their financial standing. The adjustable rates provide short term stability as the homeowners anticipate a better financial standing in the future. The state of the economy also means that homeowners get some relief with the adjustable rate mortgage as they wait for the economy to recover.

Refinancing is not for everyone

It is important to note that an adjustable rate mortgage may not be favorable in some situations, for example where the homeowner is looking to stay in the house in the long haul. You should, therefore, take your time to examine your financial situation and get a professional to advise you on the additional costs to be incurred with refinancing and help you determine whether refinancing to an adjustable rate mortgage will make any economic sense both in the short term and in the long run.

Making Use of Small Spaces

 

If you have just downsized or simply love a minimalistic lifestyle, there are many advantages to your choice. One great benefit to living in a smaller space is that it is less expensive than a big house. This results in savings and keeps you on a budget. Perhaps you are saving for retirement or you want to get your credit in order. Whatever the reason, making smart use of small space will maximize the area that you have and make it an enjoyable home.

 

The key to maximizing your space is making use of every single square inch. It may sound harder than it actually is! Whether you are downsizing to a smaller home or a studio apartment, the following tips will help you to make use of all of your valuable space:

 

Invest in a Murphy bed

 

Not only are Murphy beds a wonderful way to free up lots of valuable floor space, they are incredibly cool! There are even custom-made Murphy beds to fit any space in your home. A Murphy bed on a loft? What could be better? Just don’t roll off when you’re sleeping!

 

Make use of room dividers

 

If you live in a studio apartment, you probably have one large room that doubles as a bedroom and living room. Room dividers work wonders to break up space into two smaller rooms. Plus, they are a great way to add some décor to your home.

 

Organize creatively

 

You can really liven up your small home by adding bookshelves. Even better are shelves that are built into the wall. You can transform any wall space into your very own person library by adding bookshelves, and it also aids in organization. Make use of closet space by adding shelves, and use areas like under the bed for other storage areas.

 

Double-duty furniture

 

It’s a smart idea to make use of furniture that serves more than one function. For instance, a sofa can be a bed for overnight guests, a dining room table could double as a desk, and a storage bin could also be used as a table. You could even move your desk into your closet if there’s ample room!

 

Choose simple designs

 

Your furniture and things like your bedroom sheets should be minimalistic. In other words, simple colors and furniture with spare lines can make a small space seem a lot bigger and roomier.

 

 

Get Your Home Ready for Fall

The crispness of fall is already detectable in some parts of the country. Now that the cooler weather is approaching, it’s the perfect time to get the fall checklist together for your home. There are some things that you should do as a homeowner to get your house ready for the fall season, including weatherization and maintenance. You may choose to some of the tasks yourself or you can hire a professional if needed. Here’s a rundown of some things you should add to your fall home checklist:

Check for peeling paint. Look for signs of blistering or peeling on the paint of the exterior of your home. If you don’t correct the peeling paint, the siding is not being protected and could deteriorate.

Inspect the roof. Leaking roofs can be a big pain when there is a lot of snow and ice. If you don’t nip roof problems in the bud now, they could turn into bigger issues later on in the season. Inspect your roof thoroughly from top to bottom, checking for cracks in the shingles and curled shingles.

Clean the gutters. It’s important to clean out leaves and tree debris from gutters and downspouts in order to avoid clogged gutters. Make sure they are flowing freely and replace old gutters with ones that have leaf guards.

Get a furnace inspection. You should have your furnace and heating system checked annually for best results. It’s best to inspect the furnace before the heating season begins. Check the furnace filter and make sure it’s clean. Also, get your fireplace in working order.

Caulk the windows. In order to prevent heat from escaping your home during the colder months, it’s a good idea to caulk around your windows and doorframes. This avoids moisture getting in and freezing, which leads to cracks.

Take care of cracks in the driveway. If your driveway is damaged, it can be extra dangerous when icy conditions are present. It’s a good idea to inspect for cracks in the fall in order to avoid bigger problems later on. This goes for your walkways, too.

Remove air conditioners. If you leave them in the window, they can allow cold air to seep in. If the air conditioner is sealed properly in the window, at least cover it for the winter to prevent rusting.

Check fire extinguishers and smoke detectors. You should inspect your home’s safety features at least once per year, but every season is better. Make sure they are in working order, including CO detectors.

Winter will be before you know it, so get your home ready for the fall months. This way, you’ll be prepared for any type of weather and your home will remain comfortable and warm.

Refinancing? Consider the Costs

Waiting for the perfect time to change your home's mortgage at a better interest rate or time? With the inconsistency of the economy, homeowners are struggling to find a way to adapt and adjust their expenditures. This includes mortgage payments, which can put substantial constraints to the budget. As a result, many homeowners are looking into the idea of refinancing. 

When you refinance, you pay off an existing mortgage obligation in order to create new one, but under different and under preferable terms. Why consider it in the first place? Aside from lowering your payment, you also have the option of increasing or decreasing your payment terms. This allows you to pay off their debts sooner, build equities, and put more money on their savings. 

Before setting your decision in stone, you need to carefully evaluate your options in order to choose the loan structure that would best work with your plans. You must know your financial goals, and think of how exactly you will pay the loan. Before you could fully reap the benefits of refinancing, it is important to understand the costs that come with it. It may feel like reliving your original encounter with the same procedures and possibly the same amount of spending.

While there is such an offer as no-cost refinancing in which the lender shoulders all possible expenditures in closing costs, you need to take this on with caution. This can result into two things. They can charge you with a higher interest rate or they can add the total expenses to the amount you’ve borrowed. You will be repaying these fees for the entirety of your loan. 

Generally, the following are list of fees that you are most likely to pay when refinancing:

• Application Fee - This includes the costs in checking your credit report and initial processing of request. In most cases, this is not refundable regardless if your proposal has been approved or rejected. This could range from $75 to $500. 
• Origination Fee - It is a percentage of the total loan, used in processing (preparation and evaluation) your mortgage loan. 
• Title examination and Title Insurance - This fee is for the verification of the ownership of the property, whether the broker or lender wishes to access public records. They can also look into the insurance and policy availed in order to relieve the lender of any discrepancies.
• Appraisal Fee - It is an assurance fee that the property they have acquired is worth the loan that has been granted to you.
• Inspection Fee - This covers inspection of the condition of the properties, which may include termite inspection, structural foundation or a water test.
• Legal Fee – The payment for any legal services that a lender has sought.
• Points – These are negotiated fees at closing. A point is equal to 1% of the total loan. There are two-types: Loan-discount points which can reduce the interest of your loan, and points that brokers may charge in order to yield more revenue. 

Keep in mind that buying a home is one of the most crucial financial decisions of your life. Refinancing can be long and tedious. It is important that you get all the facts and figures straight to determine the best plan for you!

 

Should You Refinance This Summer?

 

Are you trying to decide if you should refinance your existing mortgage this summer? Well, we can help in your decision! In order to ensure the best outcome, it’s best to be informed of the refinancing process and how it can potentially benefit you as a homeowner. Otherwise, refinancing could be a costly mistake if you don’t do your research.

Refinancing costs

You need to consider the costs for refinancing in order to determine whether or not it will be worthwhile for your particular financial situation. Unfortunately, you must be willing to invest some money in order to save in the long run. Be prepared to pay multiple refinancing costs that include filing, credit checks, application fees, title examination costs, and appraisal fees.

 What are the possible benefits to refinancing?

• Lower monthly payment
• Tax benefits
• Lower interest
• Obtain cash
• Consolidate debt

Should you refinance?

There isn’t a clear cut and dry answer to whether or not you should refinance without looking at the smaller details. First of all, if you are planning to move in the next few years, refinancing may not be for you. You want to reside in the house and keep the new loan long enough to reap the benefits, and this may take a while.

If your credit score has greatly improved since your original mortgage loan, it may be a great idea to take advantage of low refinancing rates. Also, if you have high-interest loans that you wish to pay off or get a lower rate, refinancing may be a good option. It’s not a good idea to refinance simply to get cash to go on vacation or buy a new luxury car. Refinancing is a good option for those who want to pay for college tuition or get a shorter mortgage.

Right now, you have an opportunity to get some great mortgage rates through refinancing. And don’t forget about HARP, which lets borrowers refinance even though they may owe more than their home is worth. Keep in mind that the borrower's loan must be owned or guaranteed by Fannie Mae or Freddie Mac. HARP expires at the end of December in 2015.

Most Popular Flooring Options

When you walk into a home, perhaps the first thing that catches your attention is the flooring. The right kind of flooring will enhance the finishing and appearance of your home. Also, flooring that looks attractive will increase your home’s value. Good flooring will also recoup its cost if you ever decide to sell your house at some point.

 

Let's take a look at the most common flooring options available:

 

Hardwood Flooring

 

Hardwood flooring is not only beautiful but also durable. Wooden flooring is available in beech, maple,  oak, walnut, birch, cherry, and many more. Some kinds of hardwood flooring are prone to expanding and shrinking. This may lead to gaps in the floor. Some wooden flooring may also darken with age.

 

Ceramic Tiles

 

Ceramic tiles are the best solution if you are looking for a flooring type that needs waterproofing. Ceramic tile can serve several purposes. You can use them as counter tops or floor tiles. Ceramic tiles sporting a high gloss finish may scratch over time. Unglazed ceramic tiles are ideal for outdoor flooring mainly because they can withstand exposure to water. Ceramic tiles are available in glazed, matte, embossed or textured finishes.

 

Porcelain based ceramic tiles are good at hiding scratches and damages. There is one problem, though. Cleaning grout lines can be quite difficult. Also, if the tiles are of low quality, they may chip.

 

Bamboo Flooring

 

Bamboo flooring is a relatively new type of flooring. This is also a greener option. Bamboo flooring is available in a range of colors. It is elegant and durable and creates a strong and clean surface. However, exposure to sunlight can darken bamboo flooring. In addition, if you install bamboo flooring, you need to ensure that it remains dry all the time.

 

Marble Flooring

 

In terms of durability and versatility, nothing can beat marble tiles. You can install them on the floors and the walls. They can also be used for hallway columns. Marble tiles don't require much maintenance. They can also be cleaned easily. Better still, marble tiles can be engraved with stylish designs that reflect your tastes.

 

Marble tiles are available in different colors. People have been using marble as a construction material for several thousands of years. However, their most popular use is in flooring. Marble tiles are available in different sizes. If you are really handy, you can install them yourself.

 

Laminate Flooring

 

Much of the popularity of laminate flooring can be attributed to the fact that it is quite cheap. Laminate flooring also requires very little maintenance. It is strong and durable. It can also withstand burns, chipping and scratches. Laminate flooring is ideal for areas where you expect high traffic. They look like natural materials and they are also available in a range of designs and colors.

 

Before installing laminate flooring, however, you should remember that they cannot be refinished. Also, they can be scratched very easily. If you are planning to install laminate flooring in areas where it will get exposed to moisture, you should choose laminates suitable for this use. Installing and maintaining laminate flooring is quite easy.

Designing Outdoor Space

Summer is almost here, so check out these great tips from P. Allen Smith for decorating and designing your outdoor space:

As you can see, you can make your outdoor space into a summer paradise! And it doesn't matter how small the space is, either!