Cheryl Caldwell - William Raveis - The Dolores Person Group



Posted by Cheryl Caldwell on 6/12/2020

If you have just purchased a home, you have the option to refinance your home soon. Just because you can refinance your home doesnít mean that you should. How long you should wait to refinance your home depends on a few things including:


  • Your refinancing goals
  • The rules of your lender
  • If your mortgage has a pre-payment penalty clause

Goals


Your goals for refinancing are among the most important things when considering whether to refinance. Lenders typically wonít refinance a loan that you have secured in the last 120-180 days, so if youíre looking to lower your monthly payments, you may have to shop for a new lender.    


The Type Of Loan You Have


If your financial situation has changed, it may be smart to change the type of loan that you have. Oftentimes, changing the rate and the terms of the loan can give you the extra freedom that you need for your loan and your life. 


Pay Off Your Mortgage Faster


If you do a cash-in refinance, this could be a smart way for you to build equity for your financial future and help you to secure a lower rate for your mortgage. Keep in mind that FHA loans are a bit different when it comes to paying down your mortgage. The FHA streamline program requires that you wait a minimum of 6 months before you refinance. 


Pre-payment Penalties


 Before you refinance your home, youíll need to double-check to ensure that your mortgage doesnít have a pre-payment penalty. If you do have one of these clauses included in your loan agreement, you should consult your lender to make sure that refinancing is a smart move for you.


Lenderís Rules


Every lender has different rules as to how quickly you can refinance your mortgage. You may also need to meet certain qualifications in order to go ahead with the refinancing. 


As tempting as it can be to try and get a lower mortgage rate, you may want to hold off on refinancing for a variety of reasons. Remember that every time you refinance your home, youíll need to pay closing costs and other fees. While it may be a savings in the long term, it could cost you some up front cash. 


The best course of action is ideally to shop for  a lender and a mortgage rate that will suit your needs from the beginning. While no one can completely predict a changing market, you can shop around and find the right rate and loan for you at the time.




Tags: refinancing  
Categories: finances  


Posted by Cheryl Caldwell on 2/14/2020

Homeownerís insurance allows you to have financial protection if your home or the contents of your home have been damaged. If you or your family member are held legally responsible for injuries that have occurred on your property, you are also protected. Insurance is generally required by most mortgage lenders in order to secure a loan. 


There are many different types of insurance policies that you can use to cover your home. You can get anything ranging from a basic insurance policy that just covers your home overall or you can go for broader protection for your home. The types of coverage that you can get will vary from state to state.


Natural Disasters


Most insurance policies will cover damage caused by fire, wind, lightning, theft, or vandalism. Floods and earthquakes typically require additional coverage, so if you live in an area that is susceptible to these issues, then you should inquire about additional coverage. 


The Standard Policy


Most insurance policies include certain basic coverages like dwelling coverage which is the allowance for you to either repair or rebuild your home. This includes the electrical systems, the plumbing systems, and the HVAC systems. You need enough coverage for your home in order to rebuild in the event that such an event would cause a need for it. Your insurance agent can help you to find a comfortable number that will allow you enough coverage for rebuilding.


Standard coverage also may include ďother structuresĒ which can include fences, garages, cottages, and sheds. Youíll also be covered for your personal property which includes clothing, furniture, and electronics that may be damaged in your home due to theft or disaster. 


Loss Of Use Coverage


This type of coverage will pay for your living expenses if you need to move out of your home while itís being rebuilt or restored. This would allow you to find alternative arrangements when you need it most, so itís an important aspect of home insurance coverage. 


Liability Coverage


This coverage is one of the most important aspects of purchasing home insurance. Having liability will help to protect your assets and cover defense costs in the event that you have been held liable for causing and injury to other people or property. 

Additional Coverage Options


There are many different types of additional coverages that you can add to your homeowners insurance policy to help you get the right umbrella of coverage for you.




Categories: finances   Insurance  


Posted by Cheryl Caldwell on 3/16/2018

Most Americans dream of owning their own home. The size of that pictured house is often spacious. As the housing market gets tighter, the prices of homes go up. The bigger the home you wish to buy, the larger the price tag. Keep in mind that the bigger the house you buy is, the more everything else will cost. That means you have to look deep into your budget and far beyond the list price of a home to understand what you have to work with financially. Some things that a more prominent home might bring are:


Higher utility bills due to more space that you have to heat and cool

Increased property tax

Higher insurance premiums

More expensive repairs

More expensive renovations

Bigger yard to landscape


These are all additional costs that you should consider before you take the plunge to buy a larger home. The longer you live in the house, the more these expenses can add up. Many things like flooring, carpet, concrete, and roofing materials are priced by the square foot. While living large can be a great decision, the additional expenses can really add up.  


If You Have Kids, Reconsider


Raising children is expensive. While you may want your child to have a large room and a lot of amenities right inside their home, there are so many other things that kids need. Consider your childís hobbies. How much of your budget do you devote to those? Do your kids hope to attend college? How much extra money in your budget do you have for vacations and other activities that you may want to do as a family? Buying a bigger house could mean that you have less money in your budget for these things. Understand all the ways that you need to stretch your money before you have your eyes set on a larger home. 


Consider The Rest Of Your Needs


A more massive home means a more substantial monthly mortgage payment. That leaves less for you to save for things like retirement, rainy day funds, and other financial goals. Donít let the fact that you have your eyes set on a big house shadow the rest of your life and your needs. A large part of buying a home is planning ahead. It will be a smart decision all around for you and your family to buy a home thatís affordable.            


Buying a larger home fulfills a dream for many homebuyers, but donít let that idea become a singular goal.       





Categories: Buying a Home   finances