Refinancing Your Home


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.


Rent vs Own: Pros and Cons

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.

Best Tips in Home-buying According to Experts

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.