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When It Pays To Refinance Your Mortgage — Literally

November 13, 2012 by Jeff Cost

Why Refinance

To refinance a mortgage means to pay off your existing loan and replace it with a new one.

There are many reasons why homeowners opt to refinance, from obtaining a lower interest rate, to shortening the term of the loan, to switching mortgage loan types, to tapping into home equity.

Each has its considerations.

Lower Your Mortgage Rate
Among the best reasons to refinance is to get access to lower mortgage rates. There is no “rule of thumb” that says how far rates should drop for a refinance to be sensible. Compare your closing costs to your monthly savings, and determine whether the math makes sense for your situation.

Shorten Your Loan Term
Refinancing your 30-year fixed rate mortgage to a 20-year fixed rate or a 15-year fixed rate is a sensible way to reduce your long-term mortgage costs, and to own your home sooner. As a bonus, with mortgage rates currently near all-time lows, an increase to your monthly payment from a shorter loan term may be negligible.

Convert ARM To Fixed Rate Mortgage
Homeowners with adjustable-rate mortgages may want the comfort of a fixed-rate payment. Mortgage rates for fixed-rate mortgages are often higher than for comparable ARMs so be prepared to pay more to your lender each month.

Access Equity For Projects, Debts, Or Other Reasons
Called a “cash out” refinance, Columbus homeowners can sometimes use home equity to retire debts, pay for renovations, or use for other purposes including education costs and retirement. Lenders place restrictions on loans of this type.

A refinanced home loan can help you reach specific financial goals or just put extra cash in your pocket each month — just make sure that there’s a clear benefit to you. Paying large closing costs for small monthly savings or negligible long-term benefit should be avoided.

Many lenders offer low- or no-closing costs options for refinancing. Be sure to ask about it.

For November : Home Maintenance To-Do List

November 9, 2012 by Jeff Cost

Seasonal Home Maintenance The calendar has turned to November; the month during which we transition from fall into winter.

With less sunlight, colder temperatures, and shorter days ahead for Louisville , it’s an opportune time to cross those last-minute maintenance items off your homeowner to-do list.

Practicing preventive care — both inside and outside your home — can save thousands of dollars in repairs come later this winter. What follows is a brief checklist to get you started.

For outside the home :

Inspect exterior lights and outlets. Be sure that none of the outlets are cracked or broken, or have exposed wires.
Clean gutters and clear all blockages. If leaves are falling, redo after leaves are off all trees.
Inspect and test outdoor railings and stairs.
Have problem trees trimmed, including those that may damage your home in a storm.
Protect outdoor water faucets from freezing. Consider using foam cups, sold at hardware stores.

For inside the home :

Change batteries in all smoke detectors and carbon monoxide alarms, whether they’re “dead” or not.
Vacuum refrigerator condenser coils, plus the front bottom grill. Empty and clean the drip pan.
Inspect wood stoves and fireplace inserts. Hire a certified chimney sweeper to clean the chimney, if needed.
Insulate bare water pipes running through your home to prevent freezing and to limit condensation on cold-water lines.
Inspect automatic garage door opener. Lubricate chains according to manufacturer’s instructions. Make sure bolts and screws are properly tightened and secured.

As a constant series of chores, home maintenance is a four-season job and one which should not be taken lightly. The tasks of each season are unique and November’s jobs are mostly preparatory in advance of colder weather.

If your routine maintenance uncovers larger issues including a faulty HVAC unit, or a leaking faucet, for example, seek professional help to make the repair.

Questions First-Time Home Buyers Should Ask

November 8, 2012 by Jeff Cost

First-time home buyer questions Nationwide, mortgage rates are low in Kentucky and home prices remain relatively low, too. This combination, plus rising rents, is pushing renters in some cities — including Columbus — toward first-time homeownership.

Buying your first home can be exciting, but you should also do your research to make sure that you ask the proper questions of the process, and make the best choices for yourself and your household.

For example, recommended questions for first-time buyers to ask home sellers include :

What major repairs have been made to your home?

Although standard disclosure forms are supposed to provide information regarding past damage and renovation to the property, there are occasionally repairs that are omitted or otherwise forgotten. Be proactive and ask pointed questions about the roof, the foundation, and the electrical system. Some home issue have a way of resurfacing many years later and it’s best to know in advance. •

To which school district does the home belong?

As a first-time homebuyer, you may or may not have school-aged children. However, in many areas, public school rankings positively (or negatively) affect home values. Ask your real estate agent for school district data. Consider asking the seller for feedback, too.

Is this a “distressed” property, and what does that mean to me?

For many home buyers, the allure of a foreclosed home or a home in short sale can be large. Prices are discounted as compared to comparable real estate — sometimes by as much as 20%. However, many distressed properties are sold as-is,” with little room for negotiation. This means that homes may be defective or, worse, uninhabitable. Ask your real estate agent for help with distressed homes and their suitability to your home buying needs.

After asking the above questions, and other questions, too, it’s important to remember that buying a home can be an emotional decision; and one that requires using your “brain” as much as your “heart”. Try to keep emotions in check so that you don’t overpay for a home that’s unsuitable, for example.

When It Pays To Refinance Your Mortgage — Literally

For November : Home Maintenance To-Do List

Questions First-Time Home Buyers Should Ask

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