Will An Increase in Your ARM Mean Foreclosure for Your Southern New Hampshire Home?

With the current national and local foreclosure woes, and the strains of the economy these days, many people are worried about what they’ll do when their ARM (adjustable rate mortgage) resets.  Here are a few suggestions to help you weather the current financial storm:

What is an ARM?
ARM refers to a mortgage loan that has a variable interest rate.  The amount of the monthly payments will change several times over the life of the loan.  ARMs usually have a lower introductory interest rate than a fixed-rate mortgage.  After a period of time, the interest rate is recalculated in relation to current market rates, and though the amount it can increase is often limited by 'caps' on the number of percentage points it can increase in a given year, the adjustment frequently results in a higher interest rate and monthly payment.

Get Out Your Loan Paperwork
Many homeowners are worried about what will happen to their monthly payments when the ARM resets.  Foreclosure is a real worry.  The best way to avoid foreclosure in Southern New Hampshire is to know exactly what the terms of your loan agreement are.  Look for the date that the interest rate is set to change.  Find out what the cap is on each interest rate adjustment, and what the cap is for interest increases throughout the life of the loan.

After you have gathered that information, you can calculate what your ARM will reset to.  It’s best to know what the worst-case scenario payment could be when your ARM adjusts.  This information can help you determine if you are going to need help getting your loan payments manageable.  The next step is to make a detailed list of your current and future income and bills.  This will give you a better understanding of your financial status.

Call Your Mortgage Company
If, after you make this list, you can see that you are going to have trouble making up the difference in the monthly payments, call your mortgage company.  It’s best to call them before you miss a payment.  They may be able to renegotiate the terms of your loan for you.

If you're ready to sell your home, I can help. Call me at 603-821-1134 or email me at dave@daveheeter.com for more information.

Emotional Aspects of Selling Your Southern New Hampshire Home

Selling your Southern New Hampshire home is more than just setting a sale price and placing a sign in your front yard. It is an emotional process that can be stressful and frustrating. Here’s what you can expect to face:

·        Putting your Southern New Hampshire home on the market. You may have a difficult time deciding to put your house on the market even if you are being forced to move because of work or family situations. Your home holds memories that can be difficult to leave behind. You may even second guess your decision. This is a normal reaction.

·        Showing your home to potential buyers. As buyers walk through your home, you may begin experiencing a new set of emotions. Your home will usually be cleared of excessive family mementos and seem lifeless to you. Keeping your home clean for a showing can also take away precious time and increase your stress load.

·        Negotiating an offer. You obviously want to make as much profit as possible. As you review buyers’ offers, you may wonder if you are asking too much or too little. You may feel insulted by a too low offer. Even after signing a contract, there is still fear that the deal may fall through.

·        Closing on your home. Walking away from the closing table, even with a check in hand, can be stressful. At this point you have probably already moved out of your home and now must face the process of settling in a new place and learning a new area. Once again, this is a normal part of selling a home.

Let me guide you through the process of selling your Southern New Hampshire home with minimal stress.  Call me today at 603-821-1134 or email me at dave@daveheeter.com

Buying Southern New Hampshire Real Estate: Money, Mortgages and Closing Costs

Because buying Southern New Hampshire real estate is one of the most important and expensive purchases you’ll ever make, it's worth the time to consider ways you can save money.  Here are a few ideas on how to save money on your mortgage and closing costs:
  
Pay Attention
You have to pay attention to how much the Southern New Hampshire real estate costs. You have to pay attention to how much the house is worth and how much more you may have to put in the kitty for any repairs that will need to be done. Use these details to negotiate.
  
Negotiate with the Seller
Negotiating with the seller is expected.  You already know you can negotiate on the price of the home, but did you know you can also negotiate who pays the closing costs?  In this buyer's market, it has become common to ask the seller to pay some or all of the closing costs when you purchase a home. Be careful with your negotiations.  Many sellers will up the price of the home if you ask for them to pay closing costs.
  
Negotiate with your Lender
Negotiating with your lender has become the new norm.  In fact, depending on the lender’s Good Faith Estimate and your credit standing, negotiating for a better deal on your mortgage could save you thousands in the long run.
  
Examine the Good Faith Estimate
A Good Faith Estimate is the estimated settlement costs, or closing costs, your lender will expect you to pay. These can add up to as little as 3% and as much as 5% of the sales price. However, as the name implies, it is only an estimate, and prices are subject to change.  (There are new regulations this year about which costs are allowed to change and by how much, so check out the 2010 HUD Booklet, which also has some general homebuying advice.)
  
Carefully read your Good Faith Estimate. While some closing costs are usual, such as title insurance, others can be dropped by opting out of a service. Still others are “junk fees,” which you can negotiate for.
  
When buying Southern New Hampshire real estate, you always want the best deal you can get. The same should be said when picking a mortgage lender. Pay attention to the good faith estimate.  In fact, get one from several lenders and compare them. Don’t let the excitement of buying a home override your good business sense.
  
Consider Rolling Closing Costs into your Loan
Many new homeowners roll their closing costs into the loan. However, if there’s a way to pay them at closing, it might be better to do so. Paying them now saves you money because spreading them throughout the life of the loan means shelling out more interest.
  

If you’re looking for a great deal on an even better home, let me negotiate for you.  Call me at 603-821-1134 or email me at dave@daveheeter.com for more info.  

Average Size of Southern New Hampshire Homes is Shrinking

You probably will not be surprised to hear that in 2009, on the average, new-home buyers purchased smaller Southern New Hampshire homes. 
  
To be exact, the National Association of Home Builders (NAHB) released information showing that the average size of a new home decreased by 40 square feet, from 2,520 square feet in 2008 to 2,480 square feet in 2009.  While 40 square feet may not sound like a lot, it is significant because it's been 27 years since the average home size fell by that much.
  
Are You Missing a Bathroom?
This decline in square footage is also noteworthy because 40 square feet is about the size of an average bathroom.  Interestingly, NAHB's statistics revealed that the number of homes with 3 or more bathrooms fell in 2009, for the first time since 1992.
  
What's Fueling this Shrinkage?
There are 4 primary reasons the sizes of new Southern New Hampshire homes are decreasing:
  
1.    The recession.  People are reconsidering how much home they really need and are looking for ways to save money.  Results of a 2009 survey by Better Homes and Gardens magazine showed that downsizing is a bigger priority.  Thirty-six percent of homeowners surveyed said they expected their next home to be "somewhat smaller" or "much smaller" than their current home.
  
2.    The small-house movement.  This movement has been gaining steam in the United States for a number of years.  The recession accelerated it and home builders responded by building smaller homes.
  
3.    The prominence of first-time buyers in the housing market.  This is being stimulated by the $8,000 first-time homebuyer tax credit.
  
4.    The increasing number of households with members 55 and older who are buying homes.  Folks over 55 prefer to purchase single-story homes, which tend to be smaller than two-story homes.
  
Considering one of the smaller Southern New Hampshire homes? 
If you're thinking of downsizing, I can help.  Call me now at 603-821-1134 or email me at Dave@DaveHeeter.com to get started.

FAQs on Tax Credits for Buying Homes for Sale in Southern New Hampshire

Thousands of potential buyers of homes for sale in Southern New Hampshire are now homeowners, thanks to the first-time homebuyer tax credit. You could be eligible for a tax credit if you bought a home in 2009 or plan to buy one before April, 2010.  But which one are you eligible for?

If you have two or three hours to spend reading the information about the homebuyer tax credit, you'll be able to figure out if you're eligible.  But, most people don’t have the time or patience. To shorten your learning curve, here are a few tips, pointers and frequently asked (and answered) questions about the tax credit:

Three Kinds of Homebuyer Tax Credits
There are actually three kinds of tax credits:

1.    The original first-time homebuyer tax credit, enacted in 2008, covers the homes for sale in Southern New Hampshire that went off the market between April 9, 2008 and June 30, 2009. Rather than being a true credit, the money received is actually a 15-year, interest-free loan. In other words, it has to be paid back.

2.    The second tax credit, raised from a maximum of $7,500 to $8,000, doesn’t have to be paid back. If you bought a home between January 1, 2009 and November 30, 2009, you may be eligible.

3.    The third homebuyer tax credit, enacted in November 2009, is actually an expansion and extension of the second credit. It extends the deadline of November 30, 2009 to April 30, 2010 and expands the credit to include long-term homeowners who want to buy a new residence.

Tax Credit Qualifications
Just because you buy a home between April 9, 2008, and April 30, 2010, doesn’t mean you automatically qualify. Each homebuyer tax credit has its own eligibility requirements. For instance, the home has to cost less than $800,000 if bought after November 6, 2009. Long-term owners have to have lived in the same home for five consecutive years of the past eight. There are also income requirements, as well as other factors.

Automatic Ineligibility
To receive the homebuyer tax credit, there are a few things you absolutely cannot do. For example, the home you buy has to be a principle residence, which means it's the one you live in most of the time. You can’t buy it for business. As well, the home you buy has to be in the U.S.

Another “can’t do” is selling the home or converting it to rental property. You have to live in the home as your permanent residence for at least three years. If you don’t, Uncle Sam will want the money back.

There are many great homes for sale in Southern New Hampshire, and one of them might just be your dream home. However, if you plan to purchase and claim the homebuyer tax credit, make sure you know the facts first.

Have questions about the homebuyer tax credits?  I can help.  Call me at 603-821-1134 or email me at dave@daveheeter.com for more info.

Valentine’s Day and Southern New Hampshire Homes for Sale – How Much Is Too Much?

Not everyone decorates their home for Valentine’s Day, but enough do that it brings to mind the question, “How much decoration is too much when your Southern New Hampshire home is for sale?”
  
Decorations, although beautiful to you, are a matter of personal taste and style. Since this is a buyer’s market, something as simple as the wrong decorations can push a potential buyer from saying "Yes!" to saying "No."
  
Rules for Decorating Southern New Hampshire Homes for Sale
Here are a few tips on decorating for Valentine’s or any other day when you're trying to sell your home:
  
·       Choose decorations that are small and unobtrusive. Large decorations put too much emphasis on themselves. When you’re trying to sell your home, these take away from the overall appearance of the interior.
  
·       Finding buyers is all about allowing them to see themselves living in the home. When choosing your decorations, or deciding to decorate at all, keep this firmly in mind. Ornamentation made of bright colors may be fun, but can also be overwhelming.
  
·       If you’re ever at a loss on how to decorate or stage a home for sale, take a trip through furniture stores. Stores that sell furniture often have furniture set up in “living” displays so people can see what the pieces look like together. Look at the displays, take pictures and notes, and then apply the knowledge you gain to make your own home look like a display.
  
Decorating and staging correctly can make a huge difference in how buyers see the Southern New Hampshire homes for sale. The few tips above can help make your home shine.
  
Ready to sell your home?  I can help.  Call me at 603-821-1134 or email me at dave@daveheeter.com for more info.

10 Ideas to Save Money and Make Your Southern New Hampshire Home Greener

Saving money and going green are both hot topics right now.  So, I'm sure you've already heard the tips to turn off water while brushing your teeth, turn off TVs and computers and swap out old light bulbs for the new energy-saving versions. 


Here are 10 new ideas to help you save money and make your Southern New Hampshire home greener.

1.     Swap stuff.  There are hundreds of online sites where you can get furniture, books, CDs, DVDs and even a place to stay for free by swapping stuff with other people.  And, I'm not just talking about Craigslist.  Two of the most popular and easy to use swap sites are Paperbackswap.com and SwapaDVD.com.
  
2.    Recycle your cell phone.  According to the EPA, if the 100 million cell phones no longer being used by Americans were recycled, enough energy would be saved to power more than 18,500 homes for a year.  Give your cell phone back to its manufacturer or donate your cell phone to charity.
  
3.     Recycle other electronics.  Keep old TVs out of landfills by taking them to a safe e-cycling facility.  Return iPods to Apple for recycling or sell them for parts.  Take e-waste to stores like Best Buy and Staples that have recycling programs.  You'll save money by not having to pay to dispose of the electronics.
  
4.     Wait until May to buy a new TV.  New government standards take effect May 1, 2010. Energy Star-labeled televisions will be at least 40% more efficient than comparable models -- a significant savings.
  
5.     Eat foods that are in season.  It's healthier, less expensive and better for the environment.  Oh, and one more big plus:  the food tastes so much better!
  
6.     Install a water filter. Bottled water isn't any healthier than tap water, and all that plastic waste is terrible for the environment. It's also expensive!  If you use a water filter in your Southern New Hampshire home, you can get great-tasting, clean water while reducing your waste and saving money.
  
7.     Turn down your water heater. You won’t notice the temperature change, but your water heater won’t work as hard and won’t use as much energy. 
  
8.     Plant a vegetable garden.  If you don’t have the space to plant a garden, plant a tree or put some plants outside. Find vegetables and plants that grow well in your area for the best results.  Ask your local garden center for that information.
  
9.     Use green cleaners. There’s no reason to use harsh chemicals to clean your home. Use biodegradable cleaners that are safe for the environment or make your own green cleaners.  Use old towels and T-shirts instead of disposable wipes and paper towels to cut down on waste and save money.

10.     Check your insulation. Adding insulation to your home will cost money initially, but if you have minimal insulation now, you'll quickly recoup the install cost plus more by saving long term on your heating and cooling bills. Skeptical? Start out by insulating your attic and keeping track of your energy savings.  It averages out to about $116 a year in savings.

Want more tips to save money and make your Southern New Hampshire home greener?  Subscribe to my blog now.  It's free and easy.

High Southern New Hampshire Foreclosures Equals Great Deals

The extension of the homebuyer’s tax credit, as well as the expansion to include upgrade homebuyers, has a lot of people looking for their dream home. Many are looking for that dream home in the listings for Southern New Hampshire foreclosures. Why?
  
The Law of Supply and Demand
Quick marketing lesson: every market is dependent on the law of supply and demand. When the demand for a product is higher than the supply, prices go up. When there’s more product than demand, prices go down.
  
This is what’s happening now, especially with Southern New Hampshire foreclosures. Around the U.S., the supply of homes has doubled in the past two years, reaching as high as a ten-month supply. While homebuyers have been reluctant to buy a foreclosure in the past, people are starting to rethink the situation because:
  
·       Foreclosures are usually less expensive than traditional homes for sale.  In fact, some buyers have found their dream home and bought it for pennies on the dollar.
  
·       Foreclosed properties are generally in better condition than they used to be.  In the past, foreclosed homes had a much higher than average amount of repairs needed compared to other homes for sale. This is no longer necessarily true. Many foreclosed homes have been lovingly taken care of by their previous owners.
  
·       Potential buyers of foreclosures have a wider variety from which to choose. They aren’t stuck with just one type of house in one neighborhood. For the careful new homebuyer, the possibilities really are almost endless.
  
Most foreclosed homes aren’t money pits. To protect yourself, make sure your real estate agent includes in the contract that you want to have the home inspected, and that if the home inspection finds major problems, you then have the right to walk away from the deal.
  
If you’re looking for a great home at a great price, I can help.  Call me at 603-821-1134 or email me at dave@daveheeter.com for more info.

FHA Changes the Rules for Buying a Southern New Hampshire Home for Sale

The FHA, or Federal Housing Administration, has helped many a homeowner buy a Southern New Hampshire home for sale by providing mortgage insurance through FHA-approved lenders. However, a change in policy, announced in January, may make it harder for those with poor credit.
  
Before we talk about FHA's change in policy, let's cover a few of the basics about the FHA and how it might help you buy a Southern New Hampshire home for sale.
  
What is the FHA?
The FHA is a government agency that provides mortgage insurance to approved lending institutions.  It assists homebuyers by providing mortgage insurance to lenders to cover most losses that may occur when a borrower defaults.  This encourages lenders to make loans to borrowers who might otherwise not be able to get a loan.
  
What is an FHA Loan?
An FHA loan is a loan provided by an FHA-approved lender and insured by the FHA. In other words, the FHA guarantees that a lender won’t have to write off a loan if the borrower defaults – the FHA will pay. Because of this guarantee, lenders are willing to make mortgage loans.
  
An FHA loan might help you get a mortgage by providing:
·       Lower down payments
·       Lower closing costs
·       Easier credit qualifications
  
Now let's talk about the changes FHA is making…
  
The Future of FHA Loans
Until recently, the FHA has managed to weather the real estate turmoil rather well. In fact, the turbulence surrounding other lenders had potential homebuyers flocking to take advantage of FHA loans. However, even FHA's bank account is starting to suffer. In order to shore up capital reserves and keep 34 million families in their homes, the FHA is changing the rules.
  
Before the changes, borrowers were required to pay a down payment of 3.5% of the cost of the home. Now, borrowers with a credit rating below 580 will be required to pay at least a 10% down payment. As well, the good upfront mortgage insurance premiums of 1.75% are increasing to 2.25%. The FHA is now trying to get Congress' approval to raise the annual premiums from 0.55%, although the amount it will seek is still unknown.
  
What This Means for You
If you’re interested in buying a Southern New Hampshire home for sale, but haven’t because you’re waiting for the market to bottom out, you may end up losing out on a great deal. With almost record low mortgage rates, home values lower than they’ve been for eight years, the first-time and upgrade homebuyer tax credits and a wide selection of homes, there may never be a better time to buy.
  
Whether you want to use an FHA loan or a traditional loan, I can help you cash in on this great buyer's market. Call me today at 603-821-1134 or email me at dave@daveheeter.com.

How Live-In Stagers Can Save Your Southern New Hampshire Home For Sale

If you have a Southern New Hampshire home for sale and it’s sitting vacant, it's a perfect target for vandals. The signs are obvious, such as uncut grass and lights that never come on. In fact, a vacant house doesn’t just look vacant; it feels vacant.

Vandals aren’t the only problem for a vacant Southern New Hampshire home for sale, however. The other problem is that a vacant home usually sells for less and sits longer than a well maintained, occupied home. So what’s the solution?

Well, if you live close by, you can visit the home, cut the grass, turn the lights on and keep it maintained. However, if this is more trouble than you’d rather go through, there’s another option – a live-in home stager.

You’ve probably heard or read a slew of information about home staging. If you haven’t, home staging is the practice of making a house look its best and has been proven to bring consistently higher prices and faster sales for homes. Home stagers are trained to stage a house in the most attractive way to entice buyers.

Benefits of Using a Live-In Stager
A live-in home stager is slightly different from a traditional home stager, but provides several benefits to homeowners wishing to sell their empty houses:

·       No vacancy, no vandals – An empty home brings vandals. However, people are much less likely to vandalize a home that is well maintained and occupied. A live-in stager, as the name implies, stays in the home until it’s sold.

·       Home staging and maintenance – One of the worst turn-offs for a potential homebuyer is to walk up a lane surrounded by tall, uncut grass into an empty, cold home. A live-in stager brings their own furniture to turn that empty home into a visually-appealing, warm living space. They cut the grass and keep the home looking beautiful until it’s sold.

·       Residual income – Best of all, you aren’t paying them; they’re paying you. Now, obviously they won’t be paying full rent. In general, live-in stagers pay 25% – 40% of the normal rental rate. However, a vacant home isn’t doing anything but sitting there until it’s sold.

If you’ve been trying to sell a vacant Southern New Hampshire home for sale, and it’s still on the market, try a live-in stager. It may be the best decision you make this year!

If you’re trying to sell your home, I can help.  Call me at 603-821-1134 or email me at dave@daveheeter.com for more info.

2010 Trends for Southern New Hampshire Homes

Even though it may sometimes seem like it, home building and design trends are not conjured up using a crystal ball. They are the result of surveys, observations, lifestyles, socioeconomic issues, entertainment, technology, and most importantly, the needs and desires of buyers.

Here are some of the national and Southern New Hampshire homes trends to expect in 2010.

Green is growing.
A study conducted by Burst Media in late December, 2009, found that 90 percent of Web users surveyed have incorporated some aspect of going green into their lives, and overall, they are willing to pay a premium for environmentally friendly products.

Homes are getting smaller.
For 2010, home builders say they will focus on lower-priced and smaller homes. More than 95 percent of home builders surveyed by the National Association of Home Builders (NAHB) in January said that was the way they saw their businesses evolving.

Single-story homes are in.
Because of the rise in homebuyers who are 55 years of age and older, more single-story Southern New Hampshire homes are being purchased. According to NAHB, barely over half of new homes today are built with two stories or more. Two-story homes peaked at about 55 percent of the market in 2006.

Lower cost, more practical homes are being purchased.
In an attempt to respond to consumer demands for practicality, as well as hold the line on prices, home builders surveyed by NAHB are most likely to include these features as standard in their houses this year:

•Walk-in closets in the master bedroom
•Laundry rooms
•Insulated front doors
•Great rooms
•Energy-efficient windows
•Linen closets
•Programmable thermostats
•Energy-efficient appliances and lighting
•Separate shower and tub in master bathrooms
•Nine-foot ceilings on the first floor

Here are the features builders said they are least likely to add to houses in 2010. You'll notice a lot of the items being eliminated are luxury features, as builders try to lower costs.

•Outdoor kitchens
•Outdoor fireplaces
•Sunrooms
•Butler’s pantries
•Media rooms
•Desks in kitchens
•Two-story foyers
•Multiple shower heads in the master bath
•Smaller kitchens

Want to buy one of the new Southern New Hampshire homes in 2010?  Call me today at 603-821-1134 or email me at Dave@DaveHeeter.com to get started.

Rules for Rehabbing Southern New Hampshire Real Estate, Part 2

In Rules for Rehabbing Southern New Hampshire Real Estate, Part 1, you received the first five rules for rehabbing. Now, let’s go more in depth about how to rehab a home with the final six rules:

1.    Check out the neighborhood. Before you do any work to the property, walk through the neighborhood and take note of the property exteriors. What kind of landscaping do they have? Which colors do you see on the front doors? What type of siding do most of the homes have?  There is no point in spending extra money for amenities the other homes don’t have.

2.    Start with the exterior. If you begin your work on the outside, you will already create interest in people watching you work. This also tends to be relatively simple work. Trim the shrubs. Replace dead plants. Weed the flower beds. Paint the home’s exterior and window trim.

3.    Tackle the interior. You have two options for working inside: complete specific tasks throughout the entire home or work in individual rooms. Some people like to see the progress of completing a room; others like to see entire tasks, like painting, done at one time. No matter what you choose to do, start by removing the carpet. Take down switch plates. Remove the interior doors. Repair the walls. Fill in nail holes. Paint everything in neutral earth tones.

4.    Update kitchens and bathrooms. Check the plumbing. If you need to, install a new toilet, sink, or bathtub. Replace the fixtures and hardware. Replace or paint the cabinets. Go ahead and install new counter tops. They are worth the minor cost.

5.    Replace or repair floors. After the painting and installation is finished, start working on the floors. Hire a professional to install new carpet and padding. Replace or repair any other floors that are in need of work.

6.    Sell it. You can either move in to the home or put it on the market. If you sell the home, calculate your costs and check with a Southern New Hampshire real estate agent about the home’s market value. Begin advertising it for sale. Hire a real estate agent to help bring buyers to the home.

Rehabbing a home is a great way to create the ideal home for you or to make money as a real estate investor. Call me today at 603-821-1134 or email me at Dave@DaveHeeter.com for more tips on rehabbing your Southern New Hampshire real estate.

Rules for Rehabbing Southern New Hampshire Real Estate, Part 1

If you watch television home improvement shows, you’ve surely seen shows about rehabbing homes. When you buy Southern New Hampshire real estate that needs repairs, you can get it for a great price and build instant equity once the work is complete. Whether you decide to live in the rehabbed home or sell it, you've gotten a good deal.

Here are the first five rules for rehabbing Southern New Hampshire real estate:

1.    Buy low. The good news is that homes needing work usually
already have discounted prices. You want to buy the home for as little as possible because you are going to have to spend more money rehabbing the home.

2.    Have a budget. You need to know before you begin the project exactly how much money you have to spend. Include the cost of the house, labor costs, permits, and the price of materials. Don’t leave out anything, and do everything in your power to stick to the budget you set.

3.    Take good notes. Walk through the home with at least a flashlight and a way to write down notes. Count the number of windows, doors, and rooms. Write down anything you see that will need to be replaced or repaired, including flooring, walls and ceilings. Include anything that seems out of the ordinary to you. These notes will help you plan your rehab.

4.    Be realistic. Many buyers underestimate the amount of time and money it will take to rehab a home. Round your expected costs up to the nearest $5000. Set aside part of your budget for problems that may arise during the rehab. You never know when a wall is hiding a structural defect that you will have to repair. Keep your timeline flexible.

5.    Hire professionals. You will be able to do some of the work yourself, but you will need professional help for some of the work. Find a good plumber, electrician, carpenter, and roofer. Negotiate prices with them and never pay them for all the work until the job is completed.

Looking for homes to rehab?  I can help.  Call me today at 603-821-1134 or email me at dave@daveheeter.com for more information about rehabbing Southern New Hampshire real estate.

Job-loss Mortgage Insurance: A Second Change at Southern New Hampshire Homes for Sale?

Even those with a steady job and sufficient income may be cautious about signing their mortgages for Southern New Hampshire homes for sale. They realize that signing mortgages sets them up with payments for a significant amount of their lifetimes. Others worry, especially now, about losing their jobs in an unstable economy. The “what if” game begins, and potential homebuyers know that, if they lose their job, there’s a very real possibility they might lose their home.

Job-loss mortgage insurance gives homebuyers a “fallback plan” should they ever lose that stable income. It’s a definite relief to many who want to buy Southern New Hampshire homes for sale, but can job-loss mortgage insurance really help homeowners? Or, is it just another way to swindle the innocent out of hard-earned money?

What is it?
Job-loss mortgage insurance is exactly what it sounds like. Some insurance companies offer an insurance plan to help you pay your monthly mortgage payment should you lose your job. Although it’s been around for years, the big companies, such as Bank of America and GE Casualty, have begun picking it up in the past 10 years.

How does it work?
Job-loss policies pay all or part of your mortgage payment if your job loss is involuntary, and some pay if you become medically unable to work. Policies vary depending on the provider, but most go into action after a month of unemployment. Most also have a wait period which means they won’t pay out during the first six months after you've purchased the policy.

Maximum monthly benefits, what the policy covers and whether you have to be receiving unemployment benefits are just a few things to look over while researching providers. As usual with anything insurance, make sure you read the fine print.

Is it worth it?
A lot of financial advisers say not to bother with the job-loss mortgage insurance. Take the money you’d be spending on insurance and build a savings account to hold six months worth of payments. However, many first-time home buyers have depleted their reserve funds just to get the house, and may not have the money to put aside.

My advice to you…
If you’re interested in buying one of the Southern New Hampshire homes for sale, but you're worried about your job stability, look into job-loss mortgage insurance. Once you have the facts, policy information and coverage costs, figure it into your finances (payments for coverage vs. building a six-month fallback account) and decide what’s best for you.

If you’re looking for a beautiful home at a price you can afford, I can help.  Call me today at 603-821-1134 or email me at dave@daveheeter.com.  If you want to start browsing properties, enter your search criteria in my MLS Property Finder search.

Owning Southern New Hampshire Homes - Has the American Dream Died?

Some people who are supposedly “in the know” believe the American dream of owning a home has died.  They spout “facts” that say home ownership – not just for Southern New Hampshire homes, but also across the nation – is no longer on the minds of the majority of Americans.

Additionally, according to some of these individuals, suburban sprawl is the reason for:
·    the housing bubble burst,
·    the break down of social mores,
·    global warming (due to commutes, of course)
·    and more.

It’s amazing that the nation’s suburbs can cause so many problems, isn’t it?

Is the American dream of home ownership really dead? The number of people buying Southern New Hampshire homes versus renting them points to a definitive… maybe. However, in newspapers and on the Internet, we’re seeing tons of “if you can’t sell your home, rent it out” information. We’re seeing potential homebuyers being told that renting may be the best option. Why?

The economy, of course. While there are plenty of want-to-be homeowners, those same people choose to rent rather than own for a wide variety of reasons. The main reason, however, is that they think it will be cheaper.

When you first think of buying a home, it sounds like an overwhelming prospect with lots of money involved. However, while the down payment is much more than it would be for a rental property, it’s time to really look at the cost. Instead of example numbers, let me point you to Money-Zine.com's Rent vs. Buy a Home calculator.

Now, before you start plugging in numbers, remember that for the time being, the national average for a 30-year fixed rate mortgage is still closer to 5% than to 6% (It may surprise you how much of a difference a 1% increase in interest rate makes in the overall numbers). The national averages for mortgage rates in general are ranging from 4.5% to 5.5%. Of course, every situation is different, but think about it and really do your research before you decide whether to rent or buy one of our Southern New Hampshire homes. Don’t just assume it’s better to rent; renting may not be the cheap option you think it is.

If you’d like to find your piece of the American dream, I can help.  Call me today at 603-821-1134 or email me at dave@daveheeter.com.  If you want to start browsing properties, enter your search criteria in my MLS Property Finder search.