What is a Mortgage Rate?

A mortgage rate is determined by various factors, such as your credit score. Having a higher score can make you more likely to receive a favorable rate. Other factors such as the 10-year Treasury yield and inflation can also affect a borrower’s rate.

Your mortgage interest is a part of your balance. As you pay off your loan, it will gradually increase to a certain percentage. As the loan’s amortization period approaches, more of your payment will go toward the principal, while the remaining portion will go to interest.

Your monthly mortgage payment will remain at around $1,610 throughout the 30-year term. However, for the first payment, $360 of that will be applied to the principal, while $1,250 will be applied to interest. Around year 16, those proportions change, and around $807 of that will be applied to the principal, while roughly $803 will be applied to the interest. As the loan is fully paid, your payment will gradually decrease and increase, until the balance is completely erased.

Let’s say you’re planning on buying a home with a 20 percent down payment. For instance, a 30-year mortgage with a fixed rate of 5.16 percent would allow you to make a monthly payment of $173.

The annual percentage rate, or APR, is the cost of your mortgage that’s included in the loan’s total cost. It’s different from the interest rate because it includes fees and other charges. Although it’s a percentage, it’s still higher than the interest rate.

Although mortgage rates can vary from one lender to another, what’s considered “good” can change over time. To find the best rate, it’s important to compare multiple offers and take the time to thoroughly research each one. One of the most important factors that you should consider is to get at least three quotes from different lenders so that you know which one will give you the best rate.

Before you apply for a mortgage, it’s important that you maintain a strong credit score. Doing so can help boost your credit utilization ratio and lower your credit limit. Other ways to improve your credit score are paying your bills on time and reducing the ratio of your credit to your credit limit.

One of the most important factors that you should consider is to get at least three quotes from different lenders so that you know which one will give you the best rate. Having a record of your work history can also help determine if you’re a good candidate for a mortgage.

One of the most important factors that you should consider is to set aside a portion of your income for a down payment. This can help you lower the interest rate on your loan. You can also establish a savings account to boost your savings.

A study conducted by Freddie Mac revealed that it can save you up to 10 percent on a 30-year mortgage by comparing offers from different lenders.

If you’re not able to get a credit score that’s high enough, consider getting an affordable mortgage with a low credit score. An FHA loan can have a lower interest rate than a conventional one.

A good mortgage broker can help you find the lowest interest rate and negotiate a better deal. He or she can also help you get the loan that’s right for you.

If you’re planning on staying in your home for a long time and won’t be able to refinance, you can opt for a point, which is a fee that can be reduced by up to 1 percent. Each point typically costs around 1 percent of the loan amount, and it can reduce your rate by about 25 percent.

If you’re still able to make a mortgage payment, you can deduct the interest that you’re paying on the first $750,000 of the loan. If you bought a home before December 16, 2017, you can also deduct the interest that you paid on the first $1 million of the home. This applies to the purchase that was made before April 1, 2018, and it was completed before the end of 2017.

Before you start taking a deduction, it’s important that you talk to an experienced tax professional to determine the exact details of the deduction.

Tips for Buying a Home without a Realtor

It can be more challenging to buy a home without an agent than it is with one. You’ll also have to take on more responsibilities.

Having a real estate agent can help you find the perfect home. They can provide you with the necessary information about the market and the features that are available in the area. Having an agent helps you find the right home and negotiate the lowest possible price. They can also help you find properties that are within your budget.

Negotiating is a skill that real estate agents can teach you. If you’re planning on buying a home without an agent, you might have to negotiate a higher price than you want to pay. Having a buyer’s agent negotiates on your behalf will allow you to get the best possible deal.

Before you start the process of buying a home, it’s important that you have the necessary skills to manage the various documents involved in the process. Having a real estate agent can help you keep track of all of the details of the transaction.

When it comes to buying a home, working with multiple experts is often the best way to make the process easier. A real estate agent can help you find the right professionals.

Without an agent, you’ll also have to research various businesses and services on your own. This can lead to poor work and higher chances of getting stuck with a poorly-executed deal.

If you’re planning on buying a home without the help of a real estate agent, below are some of the steps that you’ll need to take to complete the process.

Getting preapproved is the first step that you’ll need to take when it comes to buying a home. This is a process that allows you to find out what you can afford and show the sellers that you’re serious about the deal. Having a preapproval can also help you avoid buying a home that’s outside your budget.

You can get an approval for a home loan through Rocket Mortgage, an online tool that allows you to see how much home you can afford. After answering a few questions, we’ll then check your credit and provide you with the necessary information to make an informed decision.

Before you start the process of buying a home, it’s important that you have the necessary skills to manage the multiple documents involved in the process. Having a real estate agent can help you find the right home. Before you start the process of buying a home, it’s also important that you have the necessary information about the market.

Before you start the process of buying a home, it’s important that you have the necessary skills to search for the perfect location. You can also narrow your search by neighborhood to find the perfect home.

After settling on a neighborhood, it’s time to start searching for homes on the market. Before you start looking for a home, keep in mind that there are many options that are within your budget.

You can also visit a home that you like online, provided the conditions allow. Most websites provide a variety of information about the property, such as the owner’s phone number or a list of upcoming open houses.

Before you start the process of buying a home, it’s important that you have the necessary skills to search for the perfect location. Also, take a look at the condition of the property. This will allow you to make an informed decision when it comes to pricing.

A seller’s disclosure is a list of known issues that the property has. This type of information can also help buyers identify potential problems with the home.

The seller is also responsible for only providing you with the information that they know about the property’s issues. However, they might avoid doing so if their state doesn’t require them to do so.

In most states, a seller’s disclosure regarding lead-based paint is required. This type of information is required for homes that were built before 1978.

In many states, however, a seller’s disclosure is not required under a so-called “caveat emptor” approach. This means that the buyer can ask the seller about specific issues.

Before you start the process of buying a home, it’s important that you have the necessary skills to search for the perfect location. Some of the questions that you can ask the seller are: Do you know about the home’s asbestos, and if there are any problems with the electrical, plumbing, and heating systems?

After you find a home that you like, it’s time to make an offer. However, before you make an offer, it’s important that you consider the various factors that affect the price. Some of these include the length of the home’s current market, the price of other properties in the area, and the condition of the home.

You should also consider the various concessions that the seller is willing to give you. These include the possibility of receiving cash back or a discount on the purchase. You should also have a copy of their mortgage preapproval letter.

Unless the home is for sale by owner, you’ll need to negotiate the terms of the offer with the seller’s agent. If the property is for sale by owner, you can make an offer directly to the seller. If the seller accepts your offer, you can then dispute or counteroffer.

Tips for Buying a Home in 2022: Part 1

by Kevin Brunnock on  in Kevin Brunnock | Real Estate

Choosing the right real estate agent and lender can make a huge difference in your home buying experience. They can help you save money and stress levels, and they can make the buying process easier. Before you sign anything, make sure that the real estate agent has the necessary expertise to help you. During the initial meeting, they should talk about your goals and needs, and they should also review some of the home options that are available to you. You should also be able to have a conversation with the lender to discuss their concerns.

Getting too fast can also have negative effects on your home buying experience. For instance, when Stuart Jones was looking to buy his first home in Philadelphia, he decided to purchase a three-bedroom airlite row house instead of a traditional one. After securing a loan from an acquaintance, Jones didn’t ask any questions and signed the contract without any concerns.

Jones recalls the first red flag that she noticed when it came to buying a home. Her lender told her that he wouldn’t work with her if she used his realtor. Another red flag that she noticed was the real estate agent’s failure to provide her with the necessary paperwork. He didn’t have the necessary documents to make an informed decision.

According to Jones, his real estate agent also failed to provide him with a specific request from the seller. This issue violated his duty to provide him with the best possible service. After he narrated his experience to a real estate agent, he decided to ask for a second opinion. He said that he was shocked by the contrast between the services offered by a good agent and those of a poor one.

Before you hire a real estate agent, make sure that you have the necessary recommendations from your local community. You should also ask for interviews with other potential agents. The right one should also present you with a buyer agreement, which guarantees both of your financial interests.

According to LoanDepot’s Jesus Cruz, the most important characteristic when it comes to choosing a lender is honesty. He said that a good loan officer will take the time to explain the process and will follow through with the promised results. It took Stuart several weeks to legally withdraw from his contract with the agent. He was already locked in, and he didn’t have the necessary space to negotiate.

A good real estate agent can also help you avoid getting carried away by your dream home. He or she can guide you through the process and make it easier to find the perfect home. Most first-time home buyers fail to find their top choice. Having a flexible mindset can help you find the home that fits your needs and budget. Before starting your search, it’s important that you rank the features of the homes that you’re interested in.

Tips for Buying a House in 2022: Part 2

by Kevin Brunnock on  in Kevin Brunnock | Real Estate

If you’re not able to find a home in a particular market, then it’s important that you consider an alternative location. This will allow you to get an advantage by researching new construction and infrastructure projects in the area.

Permitting for residential work can also help you get a deeper understanding of the current state of commercial development in your area. It can also help you save money by allowing you to get a discount on a home. You can also find this information through your local county or city website. Although real estate contracts are usually written in stone, they can be changed at any time. Before you submit an offer, make sure that you have the necessary details in mind. Also, if the offer does not meet your needs, you can ask for a modification. Ask for an explanation and consider the advice of an experienced agent.

Before you start negotiating, make sure that you have the necessary contingencies. These include the number of inspections that can be performed and the time frame that they can be done. The agent for Jones failed to explain the contingency elections in his contract. This issue prevented Jones from negotiating. It’s also important to be aware of the terms of the contract before signing it. Even if something goes wrong, you still have to abide by it.

Before you start an inspection, it’s important to thoroughly examine the home to make sure that it’s in good condition. However, if there are issues that you do not want to deal with, then you can always negotiate.

On the other hand, home inspectors are not always as foolproof as they think. They might not be able to spot potential issues or mistakes during the inspection. If you’re in a hot market, then it’s important that you enlist the help of a licensed building and systems consultant to inspect the home. This will allow you to get a deeper understanding of the building and systems.

Although the 20% down payment is usually a good idea for first-time home buyers, it can be a bit challenging for some people. According to Cruz, many clients who are new to homeownership often mistakenly believe that 20% down is required to purchase a home.

Although private mortgage insurance can be a major expense, it’s usually not a major issue for most people. According to Cruz, it can be reduced to around $125 a month depending on your credit score. Also, since the rate is based on your credit score, it can be lower if you have good credit.

Aside from having to put down a larger down payment, delaying the purchase can also increase the risk of not being able to save enough for a bigger down payment. Even if home prices continue to stay flat, mortgage interest rates are expected to rise due to the Federal Reserve’s expected rate increases.

Before you start looking for a home, it’s important that you have a clear path to the purchase. Having a budget can help you avoid getting tripped up when you find the perfect house. Also, before you commit to homeownership, make sure that you’re still interested in becoming a homeowner.

Social Media and Real Estate

on  in Kevin Brunnock | Real Estate

For real estate agents, there are many platforms that they can use to connect with their customers and grow their businesses. These include Instagram, Facebook, and TikTok. We’ll talk about how to use each platform and how to create content that’s both informative and entertaining.

Facebook is a great tool for real estate professionals to market their services and connect with their clients. It has a variety of features, such as targeted ads for local listings and a built-in messenger.

Instagram is also a great platform for real estate agents to create a business account and connect with their potential clients. They can also include contact buttons so that their potential clients can send them messages and emails.

Most real estate blogs provide basic demographic information about the area, but they don’t provide enough useful information to help potential clients make an informed decision. Instead, use social media to provide them with a deeper understanding of the markets that you serve.

Instagram is also a great platform for real estate agents to post photos of their properties in the area they’re currently marketing.

Cities often have a “CityOf…” Twitter handle, which can be used to promote their properties. These accounts are usually receptive to shout-outs and will retweet posts from other users. Use social media to let your personality shine through and connect with your clients. It’s a great way to start a dialogue before they even call.

Many real estate agents hire a ghostwriter to create their marketing copy, but this approach doesn’t give their clients a sense of who they are. According to studies, consumers want to connect with their real estate agents in a personal way. There’s no quick fix to creating effective social media content that fits with who you are as a real estate agent.

Sometimes, the most challenging days of being a real estate agent can be the best lessons that we can share with our clients. Having the necessary knowledge about common real estate mistakes can help make your buyers more informed and secure their future.

Social media is a great way to promote your blog and share useful content about home-buying tips. In today’s world, home buyers are more likely to ask real estate agents questions online instead of calling them directly. This is a great opportunity to start a dialogue with potential clients who are in the early stages of their buying process.

How Rental Real Estate Depreciation Works

by Kevin Brunnock on  in Kevin Brunnock | Real Estate

Depreciation is a tool that rental property owners can use to reduce their taxes. It allows them to deduct the costs of buying and improving their property over its useful life.

Aside from being a great financial move, investing in a rental property can also provide a steady source of income. It can also help build equity in the property as it appreciates. Another benefit of investing in a rental property is that it can easily deduct its rental expenses.

Most of the expenses that rental property owners face are deductible in the year they spend the money. These include mortgage insurance, repairs and maintenance, home office expenses, and travel expenses.

One of the most commonly used tax deductions for rental property owners is the allowance for depreciation. This process allows them to reduce their taxes by taking advantage of the property’s useful life.The IRS has specific rules regarding the depreciation process. It’s important that rental property owners understand this process before they start using it.

The useful life of a property is defined as its lifespan, which means it can last for a long time. It can get used up, get decayed, or lose its value due to natural causes. Although land is considered a valuable asset, it can’t be depreciable since it never gets used up. Also, it’s not possible to deduct the costs of landscaping and clearing. You can start taking depreciation deductions on the property as soon as it’s ready to be used as a rental.

On May 15, 2019, you buy a rental property. After working on it for several months, it’s ready to rent on July 15. Once it’s placed in service, you’ll start to realize the full depreciation of the property in July. This period usually starts in September and ends in December.

If you no longer use the property as an income-producing asset, then it’s no longer in service. You can either sell it or convert it for personal use. If the property is idle or not in use, then it can still be claimed as a depreciation deduction. For instance, if you make repairs after a tenant moves out, you can still deduct the expenses related to the repairs.

The total amount of depreciation that you can deduct each year depends on the various factors that affect the property’s value.

The IRS uses a method known as the modified accelerated cost recovery system to determine the useful life of a rental property. This is the amount of time that the agency considers the property to be useful.

Before calculating the amount of depreciation that you can deduct, it’s important that you work with a qualified tax professional.

How to Become Your Best Self

Do you know there might be a hidden version of yourself that you are yet to discover? Some people may think they are already the best version they can probably be. Unfortunately, sometimes challenges in life may bring stress, hindering you from being the best version of yourself. However, giving up should not be in your vocabulary. Continue pressing on until you become the person you genuinely admire to be.

Surprisingly, becoming your best self is achievable if you take the correct initiative. It involves enhancing all the areas of your life, like limiting your distractions and focusing on your goals. If you are looking forward to becoming your best self, this guideline will help you get started:

  • Set Your Goals

The first step you should take is to set goals in life. Picture your future, decide where you would like to be, and then set goals to help you achieve it. Your goal may be to save money to buy a house or lose weight to achieve good physical wellness. Once you set goals, you hold yourself accountable for every action you take.

  • Get Out of Your Comfort Zone

Some people may fail to bring out their best selves because of their satisfaction in their current situation. To become your best self, you must stretch a bit and make moves that scare you. You start by asking your boss for a promotion, or you can utilize your talents in public.

  • Adopt Healthy Habits

Incorporate healthy habits such as walking, creating time for meditation, or practicing yoga to be the best self. Your general body wellness lays the foundation for your best version, and your healthy habits help you nourish your mind and body.

  • Celebrate Every Milestone

Celebrate little wins as you move towards achieving your goals. Encouraging yourself is essential because it builds your confidence and strength.

  • Try New Things

It’s always refreshing and satisfactory trying something completely different in your life. You can try a new hairstyle or learn how to cook a particular meal. Doing something extra helps you explore your interests and push beyond your limits.

Parting Shot

Becoming the best version of yourself brings more success, fulfillment, and achievements. Therefore, you should take simple steps every day to enjoy all this. Motivate yourself, and focus on your strengths. Also, don’t be afraid to do new things and be determined to bring the best out of yourself.

This article was originally published on KevinBrunnock.com

Landscaping Trends on Their Way Out

Although the landscape of a home or apartment complex remains important to the overall appearance and feel of a property, landscape themes are now focusing more on function over form. One primary reason for this is that a lot of residential properties don’t provide enough space for people to enjoy large gardens with plenty of variegated flowers.

Here are some examples of emerging trends:

Making Better Use of Outdoor Space

These days, many homeowners have herb gardens and water-element features in their gardens.

Pavers made of cobblestone are also popular. With their rustic charm, they are available in a variety of unique designs. Adding them to the exterior of a home can make it look more cohesive and give it a natural feel.

A variety of furniture selections can also be found on today’s market to help make an outdoor space more comfortable and inviting. Since outdoor furniture is versatile, there are many options to choose from, such as chairs, couches, and tables.

Raised Wooden Garden Beds

Raised garden beds are a wonderful way to increase the amount of usable space in a backyard or garden. Homeowners can make them out of scrap wood and repurposed materials that they may already have.

Unlike traditional gardening, these garden beds provide an aesthetic that makes them an excellent choice for homeowners looking to make their homes more beautiful and unique.

There is Less Focus on Greenery

With the increase of pollution in the world, people are turning to low-maintenance landscaping trends. These trends have made gardening easier and have also helped reduce the amount of work required to maintain a garden.

There has been a noticeable shift in gardening trends, where a desire for beautiful and traditionally prized flowering plants has less influence. Hydrangeas and rhododendrons, for instance, have fallen out of favor because of their maintenance requirements.

With native plants, people are not only saving their own ecosystems, but also saving the planet by reducing the use of water, pesticides, and harmful chemicals. The beauty of native plants is also enhanced by their natural look and the ability to self-prune.

In conclusion, landscaping has undergone some significant changes over the past few decades because of the changes in the size of gardening space available and unpredictable climate changes that make maintenance more challenging.

Direct Real Estate Investing vs. REITs

In the world of real estate investing, one must understand the differences between direct real estate and REITs. Both can be powerful tools when it comes to investing. There are specific pros, cons, and alternatives with both. We will explore exactly how they both work:

What are the advantages of direct real estate?

Direct real estate requires the purchasing of certain properties and generating profit from them. The income could be from owning rental property or any other business dealings. Direct real estate investing also gives the investor more control. And even with the constant market fluctuations, property prices will continue to climb. This means the property could be sold for more money. Another great advantage of property purchases is the number of potential tax offsets.

What are the disadvantages of direct real estate?

Liquidity can be a real issue if you are in need of a quick money infusion. There are times when you may not be able to unload it in a timely manner. Financing can also be a big drawback as some properties require a boatload of capital. Things can go sideways really quickly if market conditions take a dive, or if you have a tenant who is uncooperative.

Advantages of REITs

The good thing about REITs is there is no need to purchase the physical property. Income-generating assets are owned by several investors. The overall return of REITS can be pretty substantial. Unlike Direct real estate, they can be sold pretty much immediately just like stocks.

Disadvantages of REITs

One huge drawback with a REIT is subject to heavy taxation. Because they are viewed as “qualified dividends,” they are taxed at a substantially higher rate. Also, rate fluctuations are not out of the ordinary. Lack of diversification can also be a drawback of REITs. If the economy takes a hit, the risks can increase.

At the end of the day, REITs can be a good way to expand your portfolio. They can be risky because no one can predict when or if they lose value. The bottom line is people should invest wisely. Think about what your portfolio will look like in the future. Always get with a professional finance person to discuss your options and gain clarity.

Last-Minute Projects to Do Before Selling a Condo

If you’re getting ready to sell your condo, you’re going to need to invest some time, money, and a little elbow grease before putting it on the market. Everything you do to prepare your condo to go on the market will influence the final sale price. The following are a few important items to focus on before you try and sell your condo.

Get Rid Of The Clutter

Clutter makes your home look messy and unattractive. Cleaning up the clutter doesn’t just make your home look more attractive to potential buyers, it can also add over $2,500 to your home’s value. But instead of taking your clutter and just hiding it out of sight, take the opportunity to sort through everything and get rid of the stuff you don’t need. A good general rule is if you haven’t used an item in the past six months, get rid of it.

Fix Everything That’s Broke – Even The Small Stuff

It’s easy to focus on fixing the big stuff, like home appliances and HVAC systems, but the small things need attention too. For example, change the burnt-out lightbulb in the closet you’ve been ignoring. Also, get that leaky faucet fixed. The idea is to not give buyers any reason to suspect your condo might be a “fixer-upper.” Making all those little repairs before you put your condo on the market will help give potential buyers a great first impression.

Make Your Condo Boring

You want every potential buyer that walks through your condo to imagine themselves living there. But that’s hard to do if too much of your personality is showing. Take down your family photos because it prevents buyers from seeing the home as their own. The same goes for trophies, children’s artwork on the refrigerator, and any other mementos you have laying around. Replace these items with some tasteful paintings on the walls and a vase of flowers on the table.

Spruce Up The Place

Sprucing up your condo means fixing any cosmetic problems it might have. This includes painting any walls that are scuffed and scratched, getting your carpet steam cleaned to remove those old stains, cleaning the windows, and so forth. Yes, this will take some work on your part but it will make a huge difference

Timing Is Everything

If you know you’re going to be selling your condo, make a list of things to do and get started on it right away. You don’t have to get it finished in a weekend, even a little each week can make a big difference. But if you need to sell your condo in a hurry, don’t be afraid to ask for help.

This article was originally published on KevinBrunnock.com