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Tips for paying off mortgage early
DEAR BENNY: I was reading in one of your columns about paying off your mortgage faster by making an extra payment each year. You said to make sure your coupon clearly indicates you are making an extra payment. I did this at the end of 2008, but didn't know whether it should go under an extra payment or payment on the principal. I paid it on the principal because otherwise it wouldn't show up until January as a payment.
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Mortgage approval is no easy task
It wasn't too long ago that home buyers made offers without financing contingencies and closed the deal in as short as 14 days following acceptance. Quick closes are virtually impossible today if you're buying a home with the aid of a mortgage. And, it's highly recommended to include loan and appraisal contingencies in your offer.
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Uncovering true cost of interest-only real estate loans
Q: "You have stated that interest-only loans cost more, but how much more?"
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Time is serious in real estate deals
When you sign a contract to buy or sell a home, you agree on the price, the closing date, and a myriad of other details. The contract may also specify that time is of the essence. If so, this means that you agree to perform on time.
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Eight ways to conserve water this summer
In February of this year, the Governor of California declared a state emergency due to drought. “ …California faces its third consecutive year of drought and we must prepare for the worst,” Governor Arnold Schwarzenegger said. As of this writing, the state has not issued a mandatory water rationing order, but asks that the residents of California participate in a voluntary reduction. With the summer months ahead, the drought is even more cause for concern. Lawns and gardens will be watered more often, more cars will be washed; essentially the hose will replace the rain. By adjusting their lifestyle a bit, homeowners can reduce water waste -- and save a buck on the monthly water bill. Here’s how:
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Don't wait until selling to make repairs
Home maintenance ranks low on many homeowners' priority lists. When the washing machine breaks, you might fix it to keep from having to go to the Laundromat. But, if there's no pressing need, home maintenance chores are often put off.
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Lender demands PMI despite 50 percent equity
DEAR BENNY: My mother-in-law's mortgage was sold to another lender. The new lender is asking for PMI, which was not required by her previous lender. She has more than 50 percent equity in her home. She really cannot afford the PMI. Does the new lender have this right? What are her options? –Craig
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What to look for in a final walk-through inspection
Most home buyers will have at least two opportunities to inspect their property before closing on the purchase.
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Real estate inheritance a mess when stepchildren involved
DEAR BOB: My mother died in 1988, and dad passed away in 2006. The house was, and still is, in my late mother's name alone. All dad did after mom's passing was continue to pay the property taxes on the house. A couple of other children belong to dad from a prior marriage. What needs to be legally done to clear the title to the house? --Mr. A.M.
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Multiple offers making a comeback
In the current home sale market, it might seem ludicrous to make an offer on a listing if it means competing with another buyer. However, multiple offers are on the rise in some markets. But, it doesn't always mean that you need to pay a lot more than the asking price.
Sellers are ever hopeful of receiving multiple offers. These days, this is usually an unrealistic expectation. That is, unless the listing is a prime property in a high-demand neighborhood where few homes are being offered for sale.
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Who pays off loan when home sells?
DEAR BENNY: I bought a house five years ago and am considering moving to another city where real estate sells for much less. I'm a real beginner at this. If the balance on my home loan is about $148,000, what happens when I sell it? Does the buyer pay off my loan? Or do I pay it with the selling price, or what? –Judy
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Price it right when selling in today's market
We're in the midst of a challenging home-sale market in many areas. However, soft markets can provide opportunities for some home sellers. The trick is to price your home right for today's market.
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Ask a Legal Expert:
Q: My father died a few years ago and now my mother recently died. I’m in the process of selling our family home to a nice couple. The next door neighbor, one of my mother’s closest friends of 50 years, just told me that my mother always wanted to have both her and my father’s cremated ashes scattered in the backyard. Can I fulfill my mother’s wishes if I’ve already entered into a contract to sell the home?
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Paying over asking price can be a good deal
Given the recent negative press about the state of the residential real estate market, it's understandable that buyers would be reluctant to offer more than the asking price. Yet, some buyers are finding that a list-price offer is not enough. Multiple offers are making a comeback in some markets.
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Freaky electrical outlet causes homeowner grief
Dear Barry,
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Lender can't nix loan on inherited home
DEAR BENNY: My father passed away in January 2008 and I have inherited his townhouse. He had an existing mortgage, and I am continuing to make the mortgage payments. I have not notified the mortgage company. I am unable to obtain financing for the home in my name at this time. I have already been turned down twice. Does state law allow me to assume this loan, or if the finance company finds out, can it pull the loan? I don't want to lose the house. There was a will (I was the personal representative and sole beneficiary) and I had an attorney prepare the deed, which has been recorded in my name. It was my father's wish that the house be mine upon his death. --R.N.
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Don't pay off entire mortgage with extra cash
DEAR BENNY: I am confused about paying off our mortgage on our primary home or on a secondary home/rental. My husband is totally against paying off either loan, even though we could pay off at least one of the mortgages. Our home mortgage has 10 years left at 5.25 percent interest and the other is a 30-year at 5.75 percent interest.
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The art of counteroffers
Negotiation is back in style. It's not uncommon for buyers and sellers to have many rounds of counteroffering back and forth before they arrive at a contract that is completely agreeable to all involved. When this is accomplished, the contract is ratified.
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Dos and don'ts of home selling
An energetic real estate agent can have your home on the market in a day. However, to provide the kind of marketing exposure you need to sell in today's market takes a little longer, unless your home is photo-ready when you list.
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No such thing as a "green" car, but there are "greener" options
Unless you've been cut off from all forms of media for the last two years, you're aware of the fact that vehicle transportation is a major contributor to climate change. According to the Environmental Protection Agency (EPA), transportation accounts for 29 percent of total greenhouse gas emissions in the United States. Transportation also is the fastest growing source of emissions, accounting for 47 percent of the net increase in total U.S. emissions since 1990. And that's just getting from point A to point B -- the figures don't factor in the emissions created by manufacturing automobiles or refining fuel.
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Buying an existing home that’s “green”
With rising energy costs and growing awareness – and availability – of environmentally friendly products, it's no wonder that interest in purchasing green homes is rising. Green remodels on existing homes both save the environment and save homeowners money on monthly bills. As green home remodeling becomes more abundant, so does the demand to purchase these homes. This increased interest in existing green homes has created a need to educate buyers on what is really considered "green."
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Sound advice would have guaranteed real estate tax break
DEAR BOB: I am selling a condo that is in my daughter's name. I have lived in the condo for the last seven years and paid the mortgage payments. The sale will close the first of next month. It will show up as a $120,000 capital gain for my daughter. Can she use the sales proceeds to pay for another house for me to live in and claim it as a gift? --Sandra R.
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Homeowner's insurance hang-ups
After paying out huge settlements to clean up mold damage, homeowner insurers pulled back from issuing new policies on homes where a water damage claim had been made within the last five years.
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Facing foreclosure: When must I move out?
DEAR BENNY: I am one of the unfortunate who has to deal with eventual foreclosure. Can you tell me how long I can remain in my home until legally having to vacate? –Constance
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Why home purchases fall apart at last minute
Most buyers and sellers feel relieved when the negotiations are done and the purchase agreement has been signed by all parties. It's a milestone. But, you might want to hold off celebrating until the transaction closes.
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Buying to flip not smart in today's market
There are deals to be made in the current real estate market. Home buyers in many areas finally have the upper hand. Ironically, buyers tend to pull back when the market is soft and buy when the market is high.
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Best mortgages in today's market
"Are some types of mortgages priced better for the borrower than others?"
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Contingent sale offers can benefit sellers
Convincing a seller to accept an offer that's contingent on the sale of another property can be challenging. The odds of acceptance improve if the offer is structured to the mutual benefit of both buyers and sellers.
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Top home-buying mistakes revealed
The first rule of inspecting a home you want to buy is to stay intimately involved in the process, and to leave no stone unturned. If you're busy or traveling during the time period, you have to complete your due diligence investigations by enlisting the aid of a friend you trust to stand in on your behalf -- someone who will keep you well informed as inspections proceed.
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Foreclosure rescue scams on the rise
Are the usual suspects returning to mortgage-related scams as a result of the subprime lending fallout? Does the practice of illegal "foreclosure rescue" operations extend even into the second-home market?
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Smart home sellers opt for pest inspection
No one wants to buy a house that's riddled with termites. So, a termite inspection -- technically an inspection for damage by any kind of wood-destroying organisms -- is usually done at some point during the course of a home sale.
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Pest repairs are turnoff for buyers
In a perfect world, houses wouldn't deteriorate over time. In reality, the wear begins as soon as a house is built. Older houses tend to have more maintenance issues. But even new homes can develop problems within a few years if they were poorly constructed.
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Sellers list right to avoid price reductions
In most areas of the country, 2007 marked a change in the residential home-sale market. Buyers gained clout for the first time in over a decade. Inventories of homes for sale grew to record levels in some places. Price reductions, which carried a negative stigma when listings were easy to sell, came to be seen as a necessary part of the home-sale process.
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Do new homes really need a home inspection?
Dear Barry,
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Pros, cons of buying home in today's market
When the housing market slows down, buyers often wait on the sidelines for a clear sign that the market has recovered. The only problem with this strategy is that you can only know for sure that a market has turned through hindsight. In other words, you can't time the market.
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Who's entitled to buyer's deposit in failed real estate deal?
Sellers often feel that they should be entitled to keep the buyer's deposit money if the buyer fails to complete the purchase for any reason. But, more often than not, when a home purchase transaction falls apart, the deposit ends up being returned to the buyer.
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Use of private mortgage insurance climbs in 2007
Despite all the negative publicity about the so-called "mortgage meltdown" with more than 100 major mortgage lenders either filing bankruptcy or being unable to fund their home loan commitments, low- and no-down-payment PMI (private mortgage insurance) mortgages are readily available if you have steady income and good credit.
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Should home buyers make backup offers?
Missing out on a home you'd like to own can be heartbreaking. But, not all home sale transactions close, so you might have a second chance. Or, you could consider making a backup offer.
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Navigating home inspection process
There's one thing that buyers and sellers agree on: home inspections are no fun. Buyers and sellers hope for a good end result, but something invariably comes up.
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