home buyer - Super Saving Moms

With the pandemic, interest rates have hit all-time lows. So, the big question going around lately is should you refinance your home? Personally, I’m strongly considering taking advantage of this opportunity. I purchased my home a little over a year ago (first-time home buyer) and didn’t get a terrible rate, but didn’t get an awesome rate either. So, I’ve been doing a lot of research and due diligence to determine if now is the time to refinance. Below are the 3 main questions I asked myself to make the best decisions for refinancing.

What is your goal for refinancing?

First, you should think about what is your end-goal. Are you trying to lower your mortgage payment, lower your interest rate, get cash out of your mortgage, or remove mortgage insurance? Deciding what your end-goal is for refinancing is the first and most important step to starting the process. Knowing what you are trying to accomplish will help you to determine if it’s worth it in the long run. I have decided my main goals for refinancing are to lower my interest rate, remove the mortgage insurance I had to get when initially buying my home, and ultimately lower my mortgage payment. I found this article by Investopedia very helpful in determining the pros and cons of refinancing.

If you’re looking to take cash-out, check out this calculator to help determine if it’s worth it in the long-run.

Should you buy points?

Do not buy points or roll them up into your mortgage. Points may seem attractive to get a lower rate, but ultimately raise your mortgage balance and interest you’ll pay over time. If you are planning on staying in your home for a long time then buying points for a lower interest rate might be a good move, but if you plan on selling in the next 1-3 years it might not be worth the extra $$. I would say if you are staying in your home for a long time and you can pay for the points cash versus rolling them up into your mortgage then it might be worth it in the long run on interest. You can determine if buying points is the right move for you by using this calculator. As my mother (who is a Realtor Broker and Insurance Agent) always says, “Never add to your mortgage balance!”

Should you roll-up closing costs?

This question is a tough one, as I know I don’t have an extra $3-6k laying around for closing costs. However, it’s in your best interest to not roll-up closing costs into your mortgage balance even though mortgage brokers will strongly encourage you to do so. Ultimately, if you do this you will end up paying interest on those closing costs, as well as, increase your mortgage payment. It may not seem like a lot of extra money for a single month (usually less than $10 extra dollars), but over time those extra dollars add up. If you are able to save up to pay for the closing costs out of pocket, it’s the best way to go!

Good luck and get multiple offers. I was able to get my interest rate down by 2.5% without buying points, removed my mortgage insurance, and my closing costs ended up being only $3000! I’m very happy with the results of my refinance.

Sources Used:

https://www.knowyouroptions.com/refinance-overview?_ga=2.124189642.1796332860.1614652949-665058774.1613152446

https://www.mortgagecalculators.info/calc-cash-out-refi.php

https://www.mortgagecalculators.info/calc-recoup.php

https://www.mortgagecalculators.info/calc-discount.php

https://www.investopedia.com/mortgage/refinance/when-and-when-not-to-refinance-mortgage/

Photo Credits:

https://unsplash.com/photos/1ddol8rgUH8?utm_source=unsplash&utm_medium=referral&utm_content=creditShareLink

https://unsplash.com/photos/uJ7NOEbTd80?utm_source=unsplash&utm_medium=referral&utm_content=creditShareLink

https://unsplash.com/photos/NpTbVOkkom8?utm_source=unsplash&utm_medium=referral&utm_content=creditShareLink

Despite all the doom and gloom coming from market analysts, millennials are becoming the largest segment of home buyers. These younger homeowners are entering the market with a limited budget, but big ideas. Such ideas are ones that have specific tastes. Seeing that I am a millennial and just bought my first home, I might have some advice for you…

Millennials are ignoring homes that were built between 1970 and 1999. The homes they’re in the market for aren’t totally opulent or modern. Most of them are classical homes that are simple enough to care for. Some fall into the “hobby home” category that home makeover shows tend to set their sights on. Beyond the type of home, there are some inherent qualities that millennials look for, especially in that picturesque Miami real estate for sale. Listed below are just a few of them that should help you, wherever you live.

Soft Colors

Interior color schemes play a major factor in making the buyer feel at home. Millennial buyers prefer earthy tones and accents to their surroundings. This can provide one reason for why wallpaper is suddenly popular again.

Owners want to avoid sterile, artificial accents in favor of an all-natural look. Carpeting is used sparingly for floors which are often marble, hardwood, bamboo, or cork. Houseplants-faux or real-are another trend that aims to bring the outdoors inside.

Media Room

Entertainment is serious business for millennials. Unlike an apartment or condo, a house can budget enough space to appease any multimedia activity. Large living rooms are perfect for a big couch and a wide flat screen.

Younger house buyers don’t care about landlines and cable hook-ups. They want a home that’s Wi-Fi friendly. This way they can stream movies and shows without having to worry about frequent buffering.

Energy Efficiency

Even with all those electronics running, millennials are conscious about energy consumption. When people buy a home nowadays, they want it to be energy efficient. If not, then they’ll have to spend extra money to make it so after the sale.

Some features millennials will look for include double-paned windows, Energy Star appliances, and solar panels. Others will ask about the insulation levels. The Nest smart thermostat is a common add-on for worry-free indoor climate control.

Photo Credit: Forbes
Must Have Smart Home Gadgets

Low Maintenance

Considering the emphasis on efficiency, it’s no surprise that most millennials favor a “disposable” home environment. One that’s not time consuming from all the hours of household chores. Attitudes like this were no doubt brought on by helping their parents with said chores.

Younger buyers are won over by hardwood floors because they’re easier to clean with a Swiffer (or Roomba). Granite countertops are also low maintenance and attractive to look at. Vessel sinks of various shapes and sizes look stylish while reducing splash.

Workspace

Over 13 million homeowners are self-employed or work from home. While they’re shopping for a home, they’re budgeting workspace. Realtors today may likely single out which rooms are suitable for home offices.

Bedroom spaces are considered optimal for converting into an office, or use as both. This allows for some flexibility when designating activity spaces. The room must be big enough to allow for office furnishings with the intimacy of a personal sanctuary.

Tag: home buyer

Should You Refinance Your Home?