Dear Michael: Can you please tell me if there is anything I can do interest decreases and I have a fixed rate type of loan?
Answer: Mortgage rates have dropped significantly during the past year. If you can qualify for refinancing, you may want to investigate the possibilities and lower your mortgage payments.
Most experts agree that if you plan to be in your house for at least a minimum of two years and can get a rate 2 percent less than your current one, then refinancing may be feasible for you.
Refinancing, may however, involve paying many of the same fees paid at the original closing, plus origination and application fees, so you will have to calculate if it is worth it. Refinancing will also involves lender qualification which includes: income-to-debt ratio, credit score, proof of employment and appraisal.
When considering refinancing please stay away from the “We can refinance your home for free at no cost and no fees!” schemes. Choose your lender carefully. Look for financial stability and a reputation for customer satisfaction.
Be sure to choose a company that gives helpful advice and that makes you feel comfortable. A lender that has the authority to approve and process your loan locally is preferable, since it will be easier for you to monitor the status of your application and ask questions.
Plus, it’s beneficial when the lender knows home values and conditions in the local area. Do research and ask family, friends, and your real estate agent for recommendations.
Dear Michael: We have been renting a home for five years. Now that the real estate market is improving we are thinking of buying our first home and would like to know how does purchasing a home compares to renting?
Answer: The two don’t really compare at all. The one advantage of renting is being generally free of most maintenance responsibilities.
But by renting, you lose the chance to build equity, take advantage of tax benefits, and protect yourself against inflation with rent increases. Also, you may not be free to decorate without permission and may be at the mercy of the landlord for housing.
Owning a home has many benefits. When you make a mortgage payment, you are building equity. And that’s an investment. Owning a home also qualifies you for tax breaks that assist you in dealing with your new financial responsibilities- like insurance, real estate taxes, and upkeep- which can be substantial.
But given the freedom, stability, and security of owning your own home, makes this investment very well worth it.
Dear Michael: We are closing escrow on our new home. We are very excited! Can you help us figure out how to best estimate our moving costs?
Answer: Preparing for a move-whether it’s cross-country or across town-can be a costly, stressful and a time consuming venture.
Be prepared for your big move by researching, budgeting and planning ahead. Perhaps the best resource to estimate moving costs is the moving company you’ve chosen to work with.
Before you call for an appointment, have your home’s square footage handy, as well as detailed notations of any large equipment or furniture you have, such as a sofa couch, entertainment center or piano.
They should then be able to give you a rough estimate, based on the size of your home, stairs (if any) and the number of large furniture items you have.
The estimate should include costs of boxes, dollies, packing tape, labels and other moving equipment, as well as the moving costs per mile; the size of your home will help the moving company determine how many boxes you may need to pack up all of your belongings.
When it comes to the often extensive costs of moving, it pays to plan ahead. Be sure to research the best prices-regardless of whether you’re planning the move yourself or if you’ve decided to hire a moving company.
Rates for moving companies, truck and equipment rentals and moving supplies can vary greatly depending on your type of move. You’re Realtor is your best resource. If you don’t have a Realtor, ask family and friends for recommendations…
Michael Kayem is a Realtor with Re/max /Execs serving Culver City and the Westside since 2001. You can contact Michael with your questions at 310-390-3337 or email them to him at: homes@agentmichael.com