Home Equity Line of Credit

Posted on February 2, 2018 by blogeditor

Getting a loan against your property can really help you out if you are in need of some extra money, but not all mortgage loans are the same. Maybe you need money for your tuition, medical expenses, or to make improvements on your home. Keep reading to find out if the home equity line of credit (HELOC) is right for you. Also, if you are looking for a horse property for sale in Colorado, contact Colorado Horse Property today and speak with one of our horse-person realtors.

A home equity line of credit is a mortgage loan. However, it is used on an as-needed basis. Your bank/lender will approve a very specific amount for you based on the equity in your home. The loan amount is available to you with no interest some or all the money is used up. Of course when the money is paid back, the line of credit is available again. It’s that simple!

What is a Home Equity Line of Credit?

Repayments can vary. Lenders require you to pay interest only or payments of principal and interest. The specifics of the repayment will depend on your bank/lender and you should make sure you understand the repayment agreement with them before continuing with the mortgage loan. One of the great things about this type of mortgage loan is that the interest on a HELOC may be tax deductible. Your tax advisor will be able to let you know about your situation.

You should not compare the APR on a HELOC with the APR on a standard loan. They are wildly different. The APR on a HELOC is the interest rate. It does not reflect points or other upfront costs, as the APR on standard loans does. It seems odd at first, having lenders to show the interest rate on a HELOC twice, but it’s a way to protect borrowers.

Rental Property Investment

Posted on January 30, 2018 by blogeditor

Rental property investment opportunities come up in the oddest times of our lives. Just inherited a small fortune from a relative? Have you been saving your money and now you’re looking for something to invest in? Do you want your money to work just as hard as you do? Putting that money into a rental property might be the investment opportunity you have been looking for. Also, if you are looking for a horse property for sale in Colorado, contact Colorado Horse Property today and speak with one of our horse-person realtors.

Rental Property Investment

A single-family home can be used for a rental property. They also have distinct advantages over other types of investments. An investor can borrow up to eighty percent of the value at fixed interest rates thirty years. You can benefit from more than just the down payment of the home—leverage is made by the financing so that the investor can benefit from the increase in value of the home.

And don’t forget, homes appreciate in value. They also provide great tax advantages and practical control that you will not find in other investments like the stock market. For example, consider a $140,000 home purchased for cash that would rent for $1,400 a month. With $18,000 income and allowing for property taxes, insurance and maintenance, it is still reasonable to expect $10,000 net income. Now that’s an investment that is working hard for you!

If you are looking for a rental property investment, you are still going to need to find an agent. Even if you aren’t planning on living in the space, you are still going to be going through the same home buying process. Finding perfect agents can be difficult for this important step that you are taking and you are going to want to do it right.

Vacation Tips

Posted on January 24, 2018 by blogeditor

Vacation tips are important to consider when leaving your home for any length of time. Colorado is a great place to spend your vacation, but be mindful for the home your leaving behind. However, data from the FBI in 2012 shows that one in every thirty-six homes in the US was burglarized, while the owners were on vacation. Those numbers have only risen in the past five to six years. Fortunately for you, there are ways to reduce your chances of having your home burglarized.

Vacation Tips

Notify police or neighborhood watch that you are going to be gone. Do this especially if you’re going to be gone for more than just a few days. Let your monitoring service (like ADT) know when you’ll be gone and if someone will be checking on your home for you.
Ask a trusted friend to pick up your mail and newspaper, keeping your yard picked up to avoid an appearance of your home being empty. Burglars are less likely to strike when they think someone is home.
Do not post your traveling plans on social media. Believe it or not, many burglars keep a look out for these types of announcements. If they know you will not be home, then they can target your property more easily.
Another great way to appear to be home when you are away is with light-timers.
If you use a hide-a-key for the cleaning service or for your high-schooler to let themselves in after school, remove these before you leave. Burglars know where to look for your key.

FHA Loan Requirements

Posted on January 23, 2018 by blogeditor

Loan requirements are tricky for an FHA. Federally qualified lenders issue FHA loans. Also. the Federal Housing Administration insures FHA loans, and is where it gets its name. FHA loans are made for low-to-moderate income borrowers who can not afford to make a large down payment. Other loan programs are not meeting the same standards that an FHA insured mortgage can because it is part of a unique sector of the market.

For example: Securing a 75% conventional mortgage that doesn’t require mortgage insurance may be the lowest cost of financing but if the buyer doesn’t have 20% down payment, it isn’t really an option and that’s where a loan from the Federal Housing Administration can help. Around 20% of all new and existing home sales can benefit from an FHA. There are loan requirements that you have to follow.

Since the federal government backs these types of loans it is easier for first-time and low-income buyers to qualify. Therefore, the requirements are not as demanding. If you have experienced the hardships of bankruptcy, foreclosure, or short sale on your home, you can still qualify for an FHA if you meet certain criteria. For help, contact Colorado Horse Property.

Loan Requirements

If a family member gives you the down payment, documentation is required to show that.
The borrower must have a debt-to-income not exceed limits of 31% for front-end and 43% back-end ratio.
You resolve or explain any judgments or collections on the credit report.
The loan is for primary residences only but can include two, three or four units.
An FHA-approved appraiser appraises the property.
The property must be safe, sound and secure, in compliance with minimum property standards as defined by the U.S. Department of Housing and Urban Development.
The borrower must be a legal resident of the U.S. and have a valid SSN.
The minimum credit score of 580 with a down payment of at least 3.5 percent, or a minimum credit score of 500 with a down payment of at least 10 percent.
The borrower may not have delinquent federal debt or judgments, or debt associated with past FHA loans.
The borrower must have steady employment history.

Retirement Preparation

Posted on January 21, 2018 by blogeditor

Retirement preparation seems to be the ultimate goal for the average hard-working American citizen. And who can blame them? Being able to have your dream life after you retire is well-deserved and attainable. However, you may need more money than you think you will need in order to fulfill that dream. Also, if you are looking for a horse property for sale in Colorado, contact Colorado Horse Property today and speak with one of our horse-person realtors.

You may have half a million dollars in liquid assets, all your bills paid up, a small mortgage on your home, you may even own your car outright and have the perfect credit score. Even with only ten-fifteen years away from retirement that might not be enough to have everything you want when you retire. So how can you have the perfect retirement?

Saving and Retirement Preparation

Saving is the key! To retire with $125,000 in the current economy you’ll need to have a net worth of $1.5 million at retirement including the money you will get from Social Security—and that’s only if you expect to live twenty-fire years after retirement. With the medical field being what it is today, and advancing all the time, you should expect to live even longer. Your $500,000 will grow to $1,045,420 in 15 years which will leave you about a half million short. You’ll need to save $24,149 each year for the next 15 years to reach your goal.

You should do some research when it comes to preparing for retirement. If you are looking into things without the help of a professional, try using a retirement calculator. Though these types of retirement preparation calculators are helpful, they do not compare to getting advise from an expert. You should try talking to the management at your local banking facility for help in finding a professional to guide you on your journey.

Defining Homeowners Insurance

Posted on January 18, 2018 by blogeditor

Homeowners insurance is always the topic of conversation when you are planning on a location to buy your first home. But what exactly is homeowners insurance? Insurance is the act of transferring risk of loss of your home or property to a company. Instead you pay a premium and, depending on the deal you strike, the company takes care of damages when it comes to that loss we just talked about. Also, if you are looking for a horse property for sale in Colorado, contact Colorado Horse Property today and speak with one of our horse-person realtors.

A deductible is the amount you pay out of pocket before the insurance begins. Deductibles can be a specific dollar amount or a percentage of the policy total. So what is all the hype about homeowner’s insurance? What a homeowner’s job is when it comes to insuring their home is finding a balance between risk of loss. Also, how much of a premium and deductible can they afford?

What Is Homeowners Insurance?

One way that insurance companies try to manage their premiums is by adjusting the cost of your deductible. So the homeowner has to decide if they would rather have a lower deductible, resulting in less money out of pocket if they incur a loss. Otherwise, a higher deductible will lower premiums but require that the homeowner pay a larger amount upfront. Confused?

Here’s an example: let’s pretend that a small kitchen grease fire has caused around five thousand dollars worth of damage in a three hundred thousand dollar home. If your home insurance policy specifies a two percent deductible then the five thousand would not be covered. As a homeowner, you should always review deductibles. You can do this with your property insurance agent. You want to be familiar with the amounts and so that you won’t be surprised if something happens to your home.

False Alarms and 5 Tips to Minimize Them

Posted on January 18, 2018 by blogeditor

False alarms aside, having a home security system is a no-brainer if you own a home. Security systems not only increase security, but they also provide a piece of mind. They can also lower insurance premiums. Also, if you are looking for a horse property for sale in Colorado, contact Colorado Horse Property today and speak with one of our horse-person realtors.

It is very important to keep your family safe in these uncertain times. Did you know that many police departments report high percentages of calls being false alarms due to home security systems. Sometimes that percentage can be as high as 98%! Besides wasting the police’s time, false alarms could upset your neighbors, which is bad news for those with strict home owners associations. Here are five great tips to minimize false alarms at your home.

False Alarms Tips

Pet Detectors
Pets are part of the family, just like children, but they are often responsible for falsely setting off your home security system. There are alarm systems now that are more pet-friendly and gives homeowners an alternative to turning them off.
Visitors
If you are planning on having guests over, especially those staying overnight, you should tell them about your home alarm system. If your guest knows when the alarm is armed then they can avoid triggering it. This is also great advice for those of you with house-keepers or babysitters. Considering giving those that you trust the code to disarm the alarm to avoid triggering a false alarm.
Securing Exits
An easy way to ensure that you will not accidentally set off your home alarm is to be sure that all windows and doors are secured before arming the system.
Backup Power
Another great tip is to be aware of how often you should replace the batteries in your alarm system. Most modern home security systems have a backup battery in care your power goes out, so if you have an older model maybe it’s time to replace it.
Don’t Forget Your Code
It is easy to forget the code to your home security system and entering the wrong numbers into the keypad can trigger a false alarm. You don’t want the police showing up with you holding an armful of groceries because you couldn’t remember your code. Try setting your code to something that is easy to remember but that is also not obvious. Let family members know if you change the code.

Vacation Money

Posted on January 18, 2018 by blogeditor

Vacation money can be hard to come by. During the Masters from April the 2nd through the 9th, hotels are often overbooked and you might find that private homes are higher in demand. If you are a homeowner during this time and have been planning to take a vacation, then maybe you should consider renting out your home to a guest and their family and make some vacation money for yourself.

Odds are your home is a thousand times better than any motel and you can charge a hefty fee for renting it out since the demand is higher with little to no competition. Need more convincing? Here’s a big push to get you off your feet and on that dream vacation: you may qualify for a tax-free income on the temporary tenant in your home while you are away.

Need Some Extra Vacation Money?

That’s right, there is a little known provision in the tax code that does not require taxpayers to recognize money that they receive from renting out their home for less than fifteen days per year. Of course not everyone has a home near where the masters takes place, but you might be surprised what other great locations temporary renters are looking for. Do you life near other large sporting events?

This may include golf or tennis tournaments, championship games of any kind, or other high attendance venues. With that said, this idea isn’t for everyone. Giving strangers access to your personal belongings does bring its own set of challenges. If you are considering this idea, then you should probably discuss it with your tax professional prior to making a definite decision. I know it’s hard to believe that you can make money while you are on vacation, but it’s true. Check out this page at the IRS for more information on how you can make a little extra money while on vacation.