Monthly Archives: January 2017

Mortgage Programs and Loan Options

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There are different types of mortgage programs and loan options that is available. What we need to know is the type that is best suitable for you since financial decision is critical in buying your new home, downsizing or moving up. These different type of mortgages vary in length, terms, rates and other factors.

Mortgage

So, how do you determine the type of mortgage you are most suitable with?

30 Year Fixed Mortgage
30 Year Fixed Mortgage
The most popular type of mortgage. This is the type of loan that has a fixed interest rate for the entire duration of the loan. What’s good with this loan is that the payment if affordable compared to mortgages with short term. It can also be obtained with small down payment percentage.
The drawback in this type of loan is the length itself. 30 years is a very long time. Another drawback is that the interest rate is higher.

15 Year Fixed Mortgage
15 Year Fixed Mortgage
Similar to a 30 year fixed mortgage but with lower length of pay period. Not all buyers will be eligible for this type of mortgage. The advantage of this loan is pretty obvious, the fact that you get to pay the loan in a lesser period of time is already an advantage. The interest rate is also lower than the previous mortgage type. More time for you to save up for your retirement.
Unlike the 30 year fixed mortgage, the drawback on this one is that you have to cover the difference in time with a higher monthly payment.

Adjustable Rate Mortgages (ARMs)
ARM
ARM is a mortgage that will have an adjusting rate at a specified time and frequency. Depending on the trends in the market, ARM rate will have a traditionally lower fixed rate during a specific time. ARM is attractive to some buyers mainly due to the initial rate. Another advantage of an ARM is that once the rate begins to adjust and is lower than what they have when they purchased the home.
The drawback is pretty obvious. It is when the rate adjusted and is higher than what they have when they purchased their home. It really can be a pain in the pocket and can be really difficult to budget.

Balloon Payment Mortgages
Balloon
Some buyers also consider this type of mortgage. This mortgage begins with a normal monthly payments for a specified time and at then, the loan will balloon at the end of the loan period. The advantage of this mortgage is that the interest rate is generally low. Some even have a lower rate than the fixed rate type or even ARM. This type of mortgage is common to those who are planning to move out in a short period of time and will sell the property before the balloon payment is due.
This type of mortgage is pretty risky. Some buyers even have to reconsider to refinance once the balloon payment is due. Take note that during that time, the value of the property can decrease or increase. So it will definitely be a problem if the value is much lower than it was when the buyer purchased the home. This type of mortgage has a greater risk of being foreclosed.

Bottom Line
Knowledge is power when purchasing a home. One wrong decision can be considered a calamity on one’s pocket. It is best for you to think it over and ask help or advice from professionals.

Refinancing Your Home

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Refinance

Before we talk about refinancing your home. Let’s talk about what refinancing is.
According to Investopedia,

A refinance occurs when a business or person revises a payment schedule for repaying debt. Mechanically, the old loan is paid off and replaced with a new loan offering different terms. When a company refinances, it typically extends the maturity date. Companies or individuals refinancing loans may have to pay a penalty or fee.

So what are the questions that you should ask before refinancing?

1. Is there a prepayment penalty on my current mortgage?
This should be asked to your lender. Many mortgages will charge you for a prepayment penalty. It can be several month’s worth but it still varies.
2. What are the cost of the new mortgage?
This really depend on the program that you’re qualified to have. Even if there are extra fees, you can still negotiate with the lender.
3. Will my tax savings be reduced?
This will be answered by your tax adviser. Have your tax adviser check if your overall savings will be increased if you refinance.

Checkout this Infographic and see the reasons why should you start considering to refinance.

Refinancing

Rent vs Own: Pros and Cons

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Rent vs own
Most people planning to move out of their house has this question in mind. Is it better to rent or just buy a new home? Well, you have to answer these questions first for you to determine which is better.

1. Are you able to get a mortgage?

Just like what we have mentioned on our previous blog regarding Best Tips in Home-buying According to Experts, it is better for you to get pre-approved. This will definitely give you an idea regarding your credit capacity.

2. Do you plan on staying put for a while?

Knowing how long you’re planning to stay in the location should also be considered. Remember that buying a home is a long term investment. So if you’re only planning to stay in the area for a short period of time, renting will be the best choice.

3. Is your Job Security Strong?

When deciding to continue renting or buying a home, take also into consideration your job security. One of the biggest reasons why some houses go on foreclosure or short sale is because of this devastating hardship.

4. Is Your Family Status Going to Change?

Are you planning to get married? Or expecting a kid soon? The answer to these questions can create financial stress.

5. Do you want the responsibilities of owning a home?

Being a home owner means that you’ll get more responsibilities in your plate. Maintenance such as Snow Removal and Lawn maintenance is an addition. Homeowners Association fee and others fees will be an extra stress in your pocket.

Infographic - home shopping vs rent

Bottom of the Line

Bottom of the line is, whether you purchase a home or just rent a new place. It is better for you to weight everything out. Even small details should be taken into consideration.

DIY Tips for Renters from the Experts

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Most of the time, getting professionals to do simple things can be costly. Or sometimes, you want this specific fine furniture yet you don’t want to spend a huge amount of money. It can be because you’re renting and have a space problem or you’re in a tight budget. Here are some of clever ideas from DIY♥Joy that will definitely make you busy this coming weekend! Start reading and plan what you’ll be needing before going to the nearest stores!
DIY Ideas
Do you have plans of renting or in need of help to find the perfect place for you? Fee free to contact us.

Best Tips in Home-buying According to Experts

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Whenever we search online for tips or best practices in the home-buying process, we’ll received thousands or millions of search results. And instead of helping us in removing our doubts towards the process and tasks, confusion takes place.

Fortunately, Market Leader gathered the tips from Real Estate Professionals and put it all on one list. They even took time to provide everyone an Infographic to help home-buyers understand the essentials in home-buying.

6 Essentials in Home-buying

  1. Get a home inspection to evaluate the safety, overall condition of your new home.                                                                                                                             – This is a must in home-buying. As much as we want to move in as soon as possible, we don’t want our hard earned money to go to waste. It is very important to avoid a mistake by purchasing a property that’s in need of major repairs. Home inspection will keep you away from those costly repairs and danger.
  2. Before you start house hunting, get pre-approved for a mortgage loan.             – Potential credit problems can be corrected since most of the Buyers are not aware of their credit. And if there are adjustments that needs attention, it will take months before it is corrected. It will also help Buyers to eliminate disappointments. It’s better to be aware if you’re credit can afford the house that you fell in love with.
  3. Direct all communication with the Seller through your Real Estate Agent.         – Real Estate process can be tricky to Home-buyers. Why does all communication should always be through to your Real Estate Agent? It is because negotiating is a tricky business. There are also contracts that are very difficult to handle. And of course, Real Estate can’t lie.
  4. Get the Seller to put every component of the deal and any verbal agreement into writing.                                                                                                                    – Everything should be in black and white when it comes to any contracts and agreements.
  5. Include important contingencies, such as financing and property inspections, with your offer.                                                                                                              – Same as number one, it is important to avoid any mistake in purchasing a property. It means your offer on a home has been made and the seller has accepted it, but the finalized sale is contingent upon certain criteria that have to be met. This will ensure that before the sale is finalized, all listed on your contingencies will be met.
  6. Come up with a realistic wishlist – what you can afford in terms of house size, neighborhood, amenities.                                                                                            – Number two on this list will come into action for this tip. As much as we want to have that dream house, it all boils down to our credit being approved or not. As soon as you already have the pre-approval letter, you will have a better understanding on what is within your budget.

How to Get the Best Possible Price When Selling Your Home

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Most people will only check the value of their house online. They often wonder how these machines were able to provide them with such results. To those who received a value way lower than what they are expecting, we think of ways on how we can improve it.

Let’s not go with the trouble of determining how these machines get the results. Let us focus on solutions on how we can improve it and have the house sold as quickly as possible.

How to Get the Best Possible Price When Selling Your Home

According to Kathleen of Blogger’s Lifestyle, there are three core steps in getting the best possible price in selling your home.

  • Make Property Improvements
  • Use Preferred Tools
  • Refine Your Property Presentation

1. Make Property Improvements
Put yourself in the Buyer’s shoes and ask yourself what do you want in a house. Ask yourself questions as well on what do you NOT want the Buyers to see in your house and remove/fix/replace it. (Remember you’re still the add those improvements so make sure that what you’re are thinking is doable or on budget)
I also strongly suggest to seek advice from well experienced professionals.

2. Use Preferred Tools

3. Refine Your Property Presentation
Most of the time, Real Estate Agents do the Open House for you. They will show your house to prospective Buyers and provide them with suggestions or even alternatives that can help with what the Buyers want to see vs what they are currently seeing. It is best to accompany the professional in showing your house to prospects since you know the house more than anyone.

There are other factors that will definitely help in selling your home. These details may be small but will definitely improve the chances in selling you home at the best possible price. Learn more about the three core steps and the small factors and how to solve them.

Things to do when moving into a new house

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Ever wonder what to do when you just moved in to your new house?

During my childhood, I never get to experience moving to different houses. We’ve been living in the same house for more than 30 years and I’m sure that once I got married, I need to move out soon. There’s a lot of things I am worrying about and I can’t keep up with the stress. It’s a good thing that I found these tips to lessen my burden and worries.

Stop what you are doing right now and focus on these 6 tips to skip potential trouble.

6 To do's in moving to a new home

As per Houselogic, there are DIY tips and some explanations as to why it is very much important to follow these.

If you have questions anything about real estate, we here at Magic Real Estate will be there for you.

0 Gibbons Avenue, Porterville,

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0 Gibbons Avenue, Porterville,

For Sale

Property Description

Property has second leaf healthy almond trees. Water provided by 150 horse power water pump on back of property. Orchard not on drop irrigation but owner with negotiate the possibility of adding a drip system with full price offer.



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0 Burnett Road, Tipton,

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0 Burnett Road, Tipton,

For Sale

Property Description

Excellent location for fast food, mini mart/gas station. Adjacent to Hwy 99 with easy on and off freeway access. Owner will assist in planning development plans for possible business opportunities.



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4916 Elysium Street, Bakersfield, CA

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4916 Elysium Street, Bakersfield, CA

For Sale

$ Click for current price
3 BEDROOMS | 1 (1 full ) BATHROOMS | 1271 SQUARE FEET

Property Description

Wow recently remodeled 3bed 2 bath with 2 car garage! Very convent location shopping& Freeway. Wont last very long!



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