What's the Difference Between a Fixed Rate and an Adjustable Mortgage Rate?

Taking on a new journey of buying a home is an exciting time, but also comes with creating a budget and researching loan options. You may be asking yourself, what's the difference between a fixed rate and an adjustable mortgage rate? While the marketplace offers a wide variety of loans within these two categories, the first step when researching mortgage options is determining which of the two main loan types fit your needs.

Fixed Mortgage Rate

A fixed rate mortgage is a well-known loan option, especially for those looking to buy their first home. During this loan option, the interest rate is set for a certain amount of time, ranging from 10, 15, or 30 years. During that time, the interest rate does not change giving homeowners a state of certainty.

Adjustable Mortgage Rate

The second loan option is an adjustable mortgage rate. Unlike a fixed rate, this option means your interest rate can change periodically meaning monthly payments could go up or down. Adjustable rates typically start with a low interest, but will rise as time goes on, also rising your house payments.

One of the most difficult decisions most homebuyers will deal with is choosing between a fixed loan or adjustable loan. At Choice Properties, we understand each buyer situation is different, motivating us to ensure your home needs and desires are met.

Choice Properties understands your needs and desires when it comes to the home search. We are here to help you define what you want, seek the best property and move forward feeling educated and able to make good decisions throughout the process. You can trust us to help you navigate it with the best real estate agents working for you. Call us to get started on your dream home search today.

Real Estate Buyer's Survival Guide

Buying a home is a common American dream shared by those who set goals and work to accomplish them. Purchasing a home is possibly the biggest invest one will make, and comes with many steps and checklists. It is important to remain stress-free during this exciting new adventure, which is why the experts at Choice Properties have created a real estate buyer's survival guide. Knowing what to expect can reduce the feeling of anxiety, leaving you to confidently find your next home.  

Budget How Much You Can Afford

Creating a budget allows you to calculate your monthly income a debt. When budgeting, consider checking your credit score and using a mortgage calculator to determine your estimate downpayment. Diving into this process with a realistic expectation will set your mind to knowing what you can afford.

Get Pre-Approved for a Mortgage

After creating your budget, including factors such as your down payment, it's time to get pre-approved for a mortgage loan. During this step, you will want to speak to at least five different mortgage brokers or lenders to determine your best fit. Shopping for the best interest rates and programs will save you in the long run, creating a plan that is fit for your lifestyle.

Determine Your Needs and Desires in a Home

Considering your needs and wants in a home will limit the selection process and ease the sense of feeling overwhelmed. A few things to consider when determining needs are:

• Discovering your desired location
• Choosing your preferred style
• Choosing a price range
• Determining the size and space needed

Research Your Target Neighborhoods

Taking time to look into the details of a neighborhood will ensure you are moving into a safe and trusted community. Research online to find information on local school, crime rates, traffic, and zoning will prepare you with what is ahead. Keep in mind local activities the community offers, as well as nearby restaurants and parks.

Hire an Expert Agent Who Is Familiar With the Neighborhood

It's important to do just as much research when hiring a trusted real estate agent. You want to work with a buyer's agent who is as motivated and determined to finding your future home as you are. Researching local agents and reading previous reviews will confirm you made the right choice in hiring a professional with experience.

Research Each Home You Are Interested in Buying

With each home comes a list of potential hidden issues. Asking your agent for comps to estimate the property's fair market value will gain a perspective on an area. Be sure to review all property disclosures, liens, easements, or other restrictions.

Make an Offer and Negotiate

Once finding your next home, it' time to make an offer and negotiate with the seller. Include factors such as repairs or inspection notices in your asking price, and don't be afraid to negotiate if you don't agree. Upon making an offer, a move-in date with be defined and both parties will sign the Purchase and Sale Agreement.

Close the Purchase and Enjoy Your New Home!

Congratulations, your new home is ready for you to move-in and make yours! When closing the purchase and determining how the funds will be collected and distributed, you can finally relax and enjoy your next chapter in life.

Choice Properties understands your needs and desires when it comes to the home search. We are here to help you define what you want, seek the best property and move forward feeling educated and able to make good decisions throughout the process. You can trust us to help you navigate it with the best real estate agents working for you. Call us to get started on your dream home search today.

Adapt Your Home to its Selling Season for Best Results

There is a home-selling myth that spring is the best season to sell a home. Although spring is the busiest time for real estate, people are looking to buy homes everyday of the year. When making the decision to sell your home in the off peak season, consider adapting your home to its selling season for best results. Emphasizing seasonal amenities will gain the attention buyers who are looking to enjoy every feature a home has to offer. At Choice Properties, we look forward to helping you sell your home during any season, focusing on the home's features and amenities.

Decide Your Selling Season

The real estate market starts to heat up as early as February, since most families are looking to move in the spring or summer. Moving before a new school year and summer vacations is a goal commonly shared, making spring a popular season to buy or sell. Although these are peak dates to sell, not everyone's situation will be the same. Deciding how quickly you need to move will determine the urgency of needing to sell. If your moving dates are flexible, you may consider holding off until early spring for a higher sale price.

Location

The location of your home also plays an important role on when to sell. Early spring and summer are ideal times to sell a beach or lake house, while a ski cabin is more likely to sell in the winter. Playing off the features your house offers will attract the interested buyer.

Staging Tips for Selling a Home

Stage the Outside

With selling a home comes with staging the space, offering a chance for potential buyers to envision their future. Playing off the season will make the home feel welcoming and inviting, such as hanging beautiful door wreaths in the winter or planting colorful flowers in the summer.

Lawn Maintenance

Ensuring your lawn is maintained and weeds are pulled will give buyers a clean perspective on the house. If selling in the winter, consider sprinkling salt after shoveling the driveway and walkways to create a safe entryway. The outside of your house is the first impression buyers will see, so it is important to present a well-cut landscape.

Tidy Up the Inside

When entering your house, guests should walk into a space that is clean, well organized, and comfortable. Be sure to take all factors into consideration, such as welcoming smells, comfortable temperatures, and simple staging. Giving individuals inspiration with how you stage your space helps them envision their own design.

Choice Properties understands your needs and desires when it comes to the home search. We are here to help you define what you want, seek the best property and move forward feeling educated and able to make good decisions throughout the process. You can trust us to help you navigate it with the best real estate agents working for you. Call us to get started on your dream home search today.

Have You Been Wondering if you Qualify for Refinancing?

If you identify as a homeowner or make monthly payments on your car then you may be aware of the option to refinance your loan. Refinancing your house or car loan simply means to finance your investment again on different loan terms, usually with a lower interest rate. This is a good idea for most homeowners when rates significantly lower than what they currently are. Depending on the loan term, choosing to refinance can save individuals hundreds of dollars per month. However, this loan option is not an to everyone. Have you been wondering if you quality for refinancing? Consider asking yourself these questions to see if you meet the criteria.

Do you have 20% stake in equity?

Lenders seek a high percentage invested into your equity, usually around 20%. To estimate your equity, divide the amount you are wanting to borrow by the value of your home. Take your amount and subtract 100 to find your equity percentage. If your percentage is around or over 20%, this increases your chances of refinancing.

Do you have a good credit score?

Aside from holding 20% equity stake, good credit score is another key factor lenders seek before the approval of the loan. The minimum most lenders require is a score of 600-650, while some lenders seek credit scores of 720 or above. If your credit score is low, focus on changes you can make to gradually increase the number. Your credit score comes from five different factors:

• Payment history
• Utilization
• Length of credit history
• New credit lines
• Type of credit you obtain

How much debt do you have?

Lenders study your monthly payments including mortgage, credit cards, and car loans that are relative to your income. Ensuring your payment history is correct with no missed payments will increase your approval of a refinance loan. Lenders seek ratios no higher than 38% when analyzing your debt-to-income.

If you are looking to reduce your monthly mortgage payment, refinancing your home is a great option! Upon going through the process you will be saving cash each month, allowing you to invest in other expenses.

Choice Properties understands your needs and desires when it comes to the home search. We are here to help you define what you want, seek the best property and move forward feeling educated and able to make good decisions throughout the process. You can trust us to help you navigate it with the best real estate agents working for you. Call us to get started on your dream home search today.