Home and Real Estate
30 Apr
30 Apr
When it comes to owning property many people around the world will tell you that this is a lifelong dream. While once an opportunity that seemed to be reserved for either the wealthiest or the most miserly among the general population home ownership is now something that is accessible to a larger segment of the population than ever before.
This is good news for many but for some can lead to confusing encounters with mortgage brokers and serious sharks along the way. The best advice that anyone can give someone attempting to embrace the dream of real estate ownership is to deal with a reputable company when it comes to obtaining a mortgage. Even when dealing with reputable lending companies you must watch out for those who do not have your best interest at heart.
If you would like some very practical advice when it comes to getting a mortgage, then you are at the right place. First of all, avoid lenders that are encouraging you to take a loan for more money than you are comfortable repaying. Foreclosures are at a record high when it comes to the mortgage industry at the moment because of predatory lending practice on behalf of some mortgage brokers. These practices include convincing people to borrow more money than they could realistically hope to pay over time and have any quality of life as well as convincing homebuyers to take out adjustable rate mortgages in the beginning in order to procure lower rates.
Shop around before you decide to buy when it comes to mortgages. This doesn’t mean to actually apply for mortgages all over town but do the research and compare rates before applying with any one company. Talk to several different brokers and find out what they have to offer you that the other company down the road cannot or will not offer. Keep in mind that mortgage companies will offer everything under the sun from free toasters to free vacations in order to get you to go with their company. The proof is in the terms however. It is simply not worth that free toaster if you are going to end up paying a 6.9% interest rate instead of a 5.9% rate. You will have paid for that toaster many times over in the process of paying the mortgage.
Even after you’ve applied for a mortgage, if the deal seems to be going south check out your other options. There are all kinds of problems that crop up along the way. You are not marrying the mortgage broker. Nine times out of ten you aren’t even making any sort of commitment at all to your mortgage broker. You will however be living in the house you select. If there is a problem with the mortgage company for the specific home you want do not hesitate to change in order to get the home you desire for your family rather than allowing the mortgage company to dictate what kind of home you can buy.
I mention this because we had a very similar problem when we purchased our turn of the century home. The mortgage company didn’t think the home was worth the risk because of its age. We saw the beauty and the potential in our home that is coming along quite nicely and managed to be approved and financed in short order with another mortgage company. If this was the case in our situation, chances are that it will work for others as well.
In all honesty, it is nearly impossible to buy a home in this day and age without taking out a mortgage. It is best however if you see the process as a learning experience rather than an abject lesson in intimidation. This is your home and your money that will be spent in order to purchase the home. You are asking them for a loan but quite frankly, they need your business. Do not hesitate to shop around for the best deal with a mortgage just as you did when finding your home.
PPPPP
683
29 Apr
The Planning Board this week approved changes that may require home businesses to adopt a new parking plan.
The final piece of the Home Occupation Ordinance passed unanimously on Monday and limits the size of commercial vehicles — such as construction trucks or limousines — to no more than 22 feet long and 8 feet high.
Those running businesses from home were previously restricted to a single vehicle with a 1-ton suspension weight, a restriction that was both difficult to discern and easily changed after inspection, said Terre Hirsch, assistant community development director.
Now, inspectors need only a tape measure, not a scale.
“We’ve made the restriction more liberal because often the length of a 22-foot vehicle is greater than the suspension weight would have allowed,” Hirsch said. “But now we get can get out with a yardstick and measure instead of weighing it.”
With the new system based more on measurements instead of weight, Planning Board member Kenneth San Miguel questioned whether a limousine business could continue to operate out of a home on a residential street, especially those with stretch or Hummer vehicles.
“So if you have a limousine business, you have to think twice about if you can park it there or not,” San Miguel said. “If it is longer than 22 feet, then we have a real problem.”
The city had issues in the past with an entire fleet of vehicles using all available parking on the street, but Hirsch said those problems have subsided.
There will also be no “grandfathering” under the old rules if a business previously kept longer vehicles on its property, he added, and no special permits will be issued.
Calls to limousine businesses with residential addresses were not returned.
The amended restriction relates specifically to vehicles parked on a home’s property and is in addition to the city’s 6,500-pound weight restriction on vehicles that use city streets.
Any trailers or cement mixers that might be attached to the back of the vehicles will also be counted toward the 22-foot restriction.
“They can have many vehicles for their business,” said Hirsch, who cited the example of a contractor who might use more than one vehicle for his work. “But none of them can be kept on the premises.”
28 Apr
<!–Saxotech Paragraph Count: 16
–>
Rockland residents aren’t proud of the county’s distinction of having the fifth highest property tax bill in the nation.
But after years of complaining about high taxes, they’re not surprised, either.
“I would have thought we would be higher than No. 5,” said Guy Gervasi of West Nyack, president of the Clarkstown Taxpayers, a watchdog group.
The study by the Tax Foundation, a nonpartisan group, ranks Nassau County tops nationwide in median home property taxes. The median amount paid on a Nassau house was $8,478, slightly more than the amount paid by the runner up: Westchester County.
Hunterdon County, N.J., was third and Bergen County, N.J., was fourth. Rockland is ranked fifth in the nation with a median tax bill of $8,542 in 2009.
Gervasi said Rockland shares many characteristics with other high-tax locations, such as Long Island and Westchester.
“Too many layers of government,” he said. “We have county government, town government, village government, all these school districts, all these police departments — that’s what costs so much.”
The only way to reduce taxes is to consolidate the layers of government in Rockland, he said.
New City resident Mike Hirsch, who founded the Concerned Taxpayers group, said there is still great waste in government.
“You can cut taxes without cutting services,” he said.
Westchester moved one spot lower to the No. 2 rank, while Putnam dropped two spots to 12 with $7,295, according to the 2009 figures.
“On a practical level, it makes no difference if you’re No. 1 or No. 2,” said Nick Kasprak, an analyst and programmer with the foundation.
The largest portion of most property owners’ bills comes from school taxes, which make up roughly 60 to 65 percent of the share, with the remaining being split among county, municipal and other districts.
Counties throughout New York have comparatively high tax burdens — and remain high on the foundation’s list. Gov. Andrew Cuomo and legislative leaders are considering measures like a property tax cap, mandate relief and other efforts to curb increases.
Republicans says the numbers show a cap is needed and called on Assembly leaders to move on the bill.
“New York’s high property taxes make it very tough for people to afford to stay in their homes and almost impossible to sell them,” Senate Majority Leader Dean G. Skelos said. “We need a strict property tax cap in place this year to finally put the brakes in property tax increases for the sake of every taxpayer that is considering leaving the state to escape high taxes.”
27 Apr
Did refinancing your home loan come up in your thoughts lately? For a number of reasons the warm seasons of the year are busy times in the real estate market for both sellers and buyers – and homeowners, too. For one thing, the weather allows folks to get outside and start doing stuff around the old homestead. This is the time of year when school kids are looking forward to the end of classes and parents see that as a good time to move. And, as with all new beginnings, it might be time to think about refinancing your home loan.
Mortgages Up for Renewal
Also, many folks purchased their homes during the warm seasons and their mortgages are coming up for renewal. It may be time for you to visit your mortgage specialist and discuss refinancing your home loan. Before you do that, you and your partner should sit down and make an assessment of your current fiscal circumstance and think once again about your short- and long-term goals. Address these questions:
- Is this home suitable for me and my family now and in the future? – Will work or family needs require me to move any time soon? – Am I able to pay all my monthly obligations and still save for emergencies or large purchases? – Are all my debts other than my mortgage at reasonable rates and will they be satisfied in the short term? – If renewal is not imminent, what are my penalty charges to opt out of the term, or should I blend the interest rate?
Rolling these issues around in your mind will help you decide if refinancing your home loan is a good idea.
Reasons for Refinancing Your Home
When looking to refinance a loan, these are all ponderous considerations. Of course, you know that refinancing is the process of getting a new home loan or adding to the present one for needed funds. If you have equity, there are a number of reasons you may want to consider refinancing your home loan and take advantage of low interest rates. For instance:
- Home Improvement
- Debt Consolidation
- College Expenses
- Vacation Home
- Real Estate Investment
- Other Investment Opportunities
Refinancing Calculations
Before your decide on refinancing your home loan, do the following calculation:
Current Mortgage at Current Rate (until end of term) = X (Your figure)
New Mortgage at New Rate + Penalty (until end of term) = X (Your figure)
Now, if a new home loan ends up lower than your present mortgage, you will probably offset the penalty. In other instances a refinance of your mortgage may make sense.
Maybe a reduction in your monthly payments is high enough that you will be able to set cash aside to save for other goals such as a rainy-day fund, a nice-to-have large purchase (boat?), or towards your retirement. Sadly, sometimes a life situation, such as a job loss or severe illness, requires alleviation by a new loan.
Other Refinance Considerations
Say you are financing over 80% of the value of your house when you are considering the refinancing of your home loan. This means your mortgage is over 80% Loan to Value. If that is the case, you should consult a mortgage specialist regarding the possibility or porting and blending the premium. Sometimes it does not play out, even with the offset of the penalty, because of the CMHC/Genworth premium.
But, having 20% equity in a home property means there are many bendable programs with lenders that can lead you to use LOC options and Visa’s, thereby keeping your borrowing expenses on the low side. You will never have to pay too much interest if you have this all set up and you decide to make a large purchase or do a debt consolidation. This is another consideration as you ponder the refinance of your home loan.
Refinance Considerations when Moving Away or Moving Up
People often like change, need change, or deserve change. If you are considering leaving your current home for whatever reason, refinancing to use equity could put a homeowner in a spot where the sales profits will not be adequate for a new down payment. You need to be candid with your mortgage specialist when discussing future house-buying possibilities. And certainly presently if your are really serious about refinancing your home.
Hilary Bowman is the author of this article. She works successfully as a financial advisor with years of expertise on Unsecured Loans. Hilary publishes informative articles about loans for bad credit and other financial topics at FastGuaranteedLoans.com.