SIGN UP LOGIN
Www.facebook.com/ChoicePropertiesRealEstate/?fref=ts IconWww.twitter.com/choiceprop_re IconWww.pinterest.com/cprealestate IconWww.cprealestate.com/blog/ Icon

Articles Tagged "cost of buying a home"

Choice Properties Real Estate Home

Subscribe and receive email notifications of new blog posts.




rss logo RSS Feed
Bellefontaine | 19 Posts
Home Buyers | 68 Posts
Home Owners | 31 Posts
Home Sellers | 36 Posts
Indian Lake | 23 Posts
Lakefront Homes | 6 Posts
Living in Ohio | 11 Posts
Logan County | 7 Posts
Moving | 11 Posts
Real Estate | 10 Posts
local attractions | community life | life in Bellefontaine | home staging | presentation | house showing | inspections | real estate agents | house hunting | finding a home | recreation | home listings | seasons | winter | midwest | outdoors | homes in bellefontaine | bellefontaine school system | find homes in bellefontaine ohio | bellefontaine businesses | homes for sale in bellefontaine | History of Logan County | Life in Logan County | Logan County Indians | Local Culture | Residents of Logan County | Houses for Sale in Logan County | Logan County Lawncare | home presentation for sellers | Showing Your Home in Logan County | Logan County Hospitality | Logan County Attractions | Local Lodging | Summer | Central Ohio Attractions | Summer Festivities | Festivals and Events | Indian Lake Boating | Summer Sports | Homeowners | Home Utilities | Summer | moving | moving | smartphone apps | home mortgage | home financing | interest rates | home buying budget | home repairs | House Comps | Home Decorating | Local Wildlife | Home Gardens | Landscaping | Home Maintenance | Home Care | Organizing your Home | Selling Your Home | Family Bonding | House Cleaning | home improvements | house upgrades | kitchen remodel | bathrooms | outdoor patio landscaping | making an offer | looking for homes in logan county | home shopping in bellefontaine | dream home | window treatments | energy costs | energy bill | home insulation | energy efficiency | solar energy | home staging | home buyers | long distance sale | vacation home | investment properties | indianlakeproperty | indianlakeboatshow | indianlake | home remodeling | cleaning closets | home upkeep | indian lake living | garage | garage cleaning | garage storage | closing costs | house financing | closing on a home | retirement | retiring in ohio | retirement home | finding a home | living in ohio | ohio retirement | moving to a new neighborhood | relocating | moving | healthy living | central ohio neighborhoods | indian lake neighborhoods | home insurance | insurance policies | buying homeowners insurance | homeowners insurance | insuring your ohio home | indian lake home insurance | buy a home in indian lake | indian lake homes for sale | indian lake real estate | bellefontaine real estate | bellefontaine properties | when to buy | calculate your payments | buy a home in indian lake | indian lake ohio real estate | homes near indian lake | homes in bellefontaine | central ohio homes | northern ohio homes | renting your home | home rental | AirBnB | vacation home rental | indian lake vacation homes | vacation homes by the lake | sellers market | selling your home | indian lake homes | homes for sale | central ohio homes | home loans | home financing | qualifying for a home loan | finding a mortgage | home mortgages | mortgage lending | buying a home in bellefontaine | buying a home | home buyers | bellefontaine homes | buying lakefront property | vacation home on the lake | vacation homes | renting your home | find the perfect home | waterfront living | Seasonal | Home Maintenance | Home Protection | Home Care | Seasonal | Winterization | Winterize your Home | Home Care | Home Maintenance | Energy Costs | Retiring in Ohio | Retire in Ohio | Renting a Home | Pros and Cons | Buying a Home | Home Renovations | home repair | living in a home | homeowners | fixing up a house | Retirement | Vacation Home | Houses for Sales | Senior Living | real estate agent | real estate company | indian lake real estate | working with an agent | renting a home | buying a home | home buyers | home owners | cost of renting | cost of buying a home | indian lake home | buying a home | indian lake houses | real estate ohio | bellefontaine hosue | senior citizens | retirement property | buying a home | indian lake homes | indian lake properties | senior house | buying a home | closing on a house | closing sale | mortgages | logan county homes | feeling at home | buying a home | finding a home | home shopping | bedrooms | kid bedrooms | kids | family home | home renovations | winterizing | winterizing your home | home care | home maintenance | home protection | winter | Home Repairs | Home Maintenance | Fixing a Clogged Sink | Tips for Homeowners | Living Room | Using Space | Decorating | Furniture | Refinancing | Financing | Buying a Home | Saving Money | New home buyers | Escrow | Home buying process | ohio home buyers
September
25

Buying a home is the American dream that many families hold. We all know it's never cheap to purchase a home, and may take a couple years to save for an appropriate downpayment. But, how much should you save for a downpayment on a home? Typically, it is suggested you save 5% of your maximum budget. Meaning, if your budget for purchasing a home is $180,000, you should save $9,000 for a down payment. With the right tips and tricks, you will be able to save up for a down payment in no time. Try these tips on saving money for a down payment, turning your dream of purchasing a home into a reality! 

Develop a Savings Plan

Taking time to create a savings plan will help you stay organized on spending habits, along with developing a timeline. If you are looking to move in two years, calculate how much you need to save each month to have a 5% down payment you're seeking. In order to make a savings plan, you will need to carefully comb through your weekly and monthly spending to figure out the amount you are able to save in a certain timeframe. Some things to include when making your monthly budget include:

  • Gas expenses
  • Grocery shopping 
  • Rent/monthly housing payment
  • Car Payments/insurance 
  • Utility bills
  • Emergency funds 
  • Miscellaneous expenses 

Avoid Mindless Spending

Along with making a savings plan, make a note to avoid mindless spending. Once you start to manage your spending habits, you will quickly notice the amount you spend without even realizing it. Doing so could easily save you a couple hundred dollars a month. 

Take Your Time

Buying a new home is exciting, and it can be hard to not rush the process. Perhaps you are ready for this next step in life. However, it's important to remember not to get ahead of yourself. Take your time with the homebuying process, and be sure to not bite off more than you can chew. When you are ready to start the home buying process, contact the expert real estate agents at Choice Properties! Whether you are a first time homebuyer or experienced in the process, our team is eager to assist. 



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.

September
4

Buying a new home is an exciting time in life! Whether you are a first time homebuyer or experienced in the homebuying process, it is a huge accomplishment. However, the downpayment and monthly mortgage isn't the only costs that come with owning a home. Homeowners insurance may often be overlooked by first time homebuyers, as it's not a popular topic of discussion. When financing through a bank, homeowners insurance is typically required. Although it's required, it's most certainly worth the cost. Navigating through various homeowners insurance policies may feel confusing. Here is what to look out for when searching for the best homeowners insurance, ensuring you're paying the best price for the best coverage. 

 

1. Coverage

 

Coverage is the most important factor when searching for the right homeowners insurance. Most offer an array of coverage policies which are broken down by the amount protection they offer. This means how much the insurance company will replace your valuables after a natural disaster or a loss. The three main types of coverage policies include:

 

  • Cash Value Replacement Coverage: This option will replace the cash value of the items lost, while taking into account the depreciation of your personal items.
  • Full Replacement Coverage: Full replacement coverage will reimburse you the complete cost of your items, at today's cost. Meaning there is no depreciation. 
  • Guaranteed Replacement Cost Coverage: If your home is a total loss, this coverage will completely reimburse the actual cost with no coverage limits, in today's dollar amount.

2. Additional Coverage Plans

There are an array of coverage plans that you can add to your existing policy, for even more protection. Many opt for this if they live in an area where natural disasters are known to occur. This may include:

 

  • Flood Insurance: Those who live in areas prone to flooding are encouraged to purchase an add-on of flood insurance onto their policy. This will ensure your items are covered following an event of a flood or severe storm surges.
  •  Earthquake Insurance: This plan will protect your values and items in an event of an earthquake. Those residing in California are more inclined to include this policy onto their plan. 

3. Get Three Quotes Before Making a Decision

Just as you browse and shop for your new home, you will want to do the same for homeowners insurance. Take this time to consider what you need within a policy, in terms of the coverage needed and where you reside. For example, those buying a home in Ohio most likely do not need earthquake insurance. By shopping around and learning pricing and options available, you will be able to make the best decision.




Choice Properties offers you a chance to find the home of your dreams. We work with your budget and ideas in mind to support your ultimate vision. Call us if you are ready to check out the available inventory or to speak with a reputable agent who can assist you with your home buying needs.

August
7

Making the leap from renting a home to owning a home is a huge reward! The hard work and savings have finally paid off and you are now ready to work with a real estate agent on making your dream a reality. But, perhaps you're wondering what to expect when buying your first home. It's natural to feel a sense of stress when making a large investment, as there will be a shift in responsibility and life changes. However, don't let this scare you out of your dream! Owning a home is one of the best accomplishments you will experience in life. Check out this guide on going from a renter to a first time homeowner to fully embrace each step. 

Increase in Responsibility

The best part about owning a home is having the freedom to make the space unique to you. You can paint the walls, replace kitchen cabinets, plus take full advantage of the financial savings that come with buying a home over renting a home. These are intriguing benefits of buying a home, but it's important to remember the increase of responsibility that also accompanies homeownership. This means being financially able to make any unexpected repairs, such as a broken cooling or heating. 

Repairs, Renovations, and Updates

Chances are, when buying your first home the house will need minor repairs or updates. Many incorporate this within their budget when looking at homes on the market. Becoming a homeowner means repairing broken appliances or leaky faucets, as well as any additional expenses. When working with your trusted real estate agent during the home buying process, take time to assess damages or repairs that will need addressed both in the short term and long term. If you do come across a home emergency that needs addressed as soon as possible, reach out to neighbors in your community for referrals.

Miscellaneous Home Buying Expenses

Unfortunately, there's more to simply getting a mortgage and buying a home. There is the cost of the house, but other upfront and miscellaneous expenses that may catch you off guard. It's important to educate yourself on the hidden, unexpected costs of purchasing a home. Here are some extra expenses to consider:

 

  • Home inspections 
  • Home insurance
  • Closing costs (Lender fees, Appraisal, Title, Escrow fees, Interset)

 

  • Maintenance and repairs



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.

 

June
26

Homeownership is known as the American Dream. Perhaps this means you are transitioning into a new phase of life with a family, and you desire to own a home. For others, it might mean no longer paying rent and gaining home equity. Homeownership is quite an achievement, but also comes with a large amount of responsibility. There are many considerations to take in, such as being financially and personally ready to tackle this new adventure. Explore these signs that you may be ready for homeownership.

 

You Are a Responsible Renter

 

Renting is a good option for those who are looking for a short term plan. However, once you have settled down you may begin to feel the downsides to renting. If you pay rent on time, along with utilities and other bills, you should have no trouble paying a mortgage every month. Making timely and consistent rent payments proves you hold financial responsibility. However, it is important to also factor in state and local taxes into the monthly budget of homeownership.

You Have Job Security

A clear sign you are prepared for homeownership is job security. It's important to make sure you are financially comfortable before signing a 30 year mortgage. If you are set in your career and don't plan on having drastic changes in the next few years, now is the perfect time to buy your first home!

You Know What Kind of Home You Desire

If you know the style of home you are looking for and have been looking in the right market, your gut is leading you in the right direction. If you are unsure of what you seek in a home, consider asking yourself these questions:

  • How many bedrooms do you need?
  • What do you find important to your family?
  • What kind of neighborhood do you prefer?
  • Are you willing to commute to work? If so, how far?

Your Credit Score is Ideal

Another sign you are ready to purchase a home is excelling in a high credit score without carrying a large amount of debt. Your credit score affects the likelihood of getting a mortgage loan, and the better your credit score the better your interest rate. It's suggested to check your credit score 12 months prior to starting the home buying process.

You Are Aware of the Home Buying Process

If you are somewhat familiar with the home buying process, you're ready to take the leap. Researching how buying a home works is suggested, ensuring you're aware of each step throughout the process. The main steps include finding a trusted lender, affording a down payment, and finding a trusted real estate agent.



Choice Properties offers you a chance to find the home of your dreams. We work with your budget and ideas in mind to support your ultimate vision. Call us if you are ready to check out the available inventory or to speak with a reputable agent who can assist you with your home buying needs.

April
17

Buying a Home for Retirement

Buying a home after you have retired may feel like an overwhelming challenge. You may be asking: Should I stay in my current home? Should I downsize to a smaller house? Will moving into a new home fulfill my needs? Buying a home for retirement is a financial commitment, but comes with a return of investment and a list of benefits! Whether you are looking to downsize or simply desire a fresh start in a new home, here are some considerations to ask yourself along the way.

Location

The first step to buying a retirement home is choosing the area you wish to live. Real estate is all about location, meaning it is especially important to choose the correct spot to retire. Depending on the situation some of the factors that may influence your decision include proximity to friends and family, the yearly climate, and neighborhood preferences. Perhaps a community with sidewalks for evening strolls, or nearby parks for afternoon picnics will suit your needs.

Budget

Purchasing a home upon retirement depends on your budget, and how much you are willing to spend. Of course, choosing to apply for a mortgage is always an option although most include home buying into their retirement plan. If you are planning to purchase or build a retirement home, knowing how much you can realistically afford to spend will help set expectations.

Maintenance

It's well-known that the cost of owning a home is more than just the mortgage, taxes, and insurance. Factoring in the expense of maintenance and upkeep is also an important consideration when browsing for a retirement home, as most desire low-maintenance living. Whether you are seeking a home with ample yard space for a seasonal garden, or a neighborhood with homeowners association that tends snow removal and lawn care, the award winning agents at Choice Properties will help you meet your goals.



Choice Properties offers you a chance to find the home of your dreams. We work with your budget and ideas in mind to support your ultimate vision. Call us if you are ready to check out the available inventory or to speak with a reputable agent who can assist you with your home buying needs.

March
6

Tips for Millennial Home Buyers

It's no secret that millennials' homeownership rate is significantly lower than previous generations at the same age. The Urban Institute quotes, "Today's young adults are failing to build housing wealth, the largest single source of wealth, at the same rate as previous generations. While people make the choice to own or rent that suits them at a given point, maybe more young adults should take into account the long-term consequences of renting when homeownership is an option." Although it may feel overwhelming, homeownership comes with an endless list of benefits that millennials should not rule out. The expert real estate agents at Choice Properties have gathered some tips for millennial home buyers.

Count the Costs

When investing in a home, you're not only paying for the house itself. There are extra costs to consider, such as a downpayment, closing costs, moving costs, and maintenance updates. It may sound stressful, but working with a trusted agent will eliminate most of the work and worries.

Examine Your Finances

The most important factor when buying a home is to examine your finances. When applying for a mortgage, the lender will check your income along with credit history. Take time to improve your credit, and checking your history to make sure there are no errors (which can happen!). A lender is more likely to offer a better mortgage rate when you prove you have the finances to support the purchase.

Don't Assume You Can't Afford a Home

Perhaps the most common perception of buying a home is that it's too expensive and can't be done. Although it is a large investment that requires saving money, it is possible! Take time to shop for a mortgage lender, as each one will provide different rates and offers. Seeking advice from different lenders and a realtor will help find the best option for you.

Know What to Look for

When house shopping, keep your eyes open of warning signs the home may bring. There is no worse feeling than buying your dream home only to discover it's full of maintenance issues. If you know what you're looking for these issues can be avoided, saving you money in the long run. Consider crossing the house off your list if you see:

  • Warning signs of termites
  • Cracked walls or distorted paint
  • Foundation issues, such as uneven flooring





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.

February
20

Benefits of Attending an Open House

With spring around the corner the housing market is about to be booming. Warmer weather brings the peak season of buying and selling a home. Browsing online listings is a great start and allows you to get an idea of what you're seeking in a home. However, browsing online only goes so far! Taking time to walk through houses and view details in person will help make your final decision easier. At Choice Properties, we update our open houses daily on our website. Your award-winning real estate agent will keep you updated on new homes within the area, ensuring your never miss an opportunity. Explore the benefits of attending an open house and start the journey of finding your dream home!

Stress Free Environment

Searching for a new home can feel overwhelming and stressful, especially to those new in the homebuying process. An open house gives buyers and opportunity to browse through the home in a stress free environment, allowing them to take their time with no pressure. Since no appointment is required for an open house, buyers are free to come-and-go as they please, taking things at their own pace.

Browse Neighborhoods

Open houses are a great way to browse various neighborhoods. Taking time to learn more about the neighborhood such as schools, volunteer work, local clubs and more will help you find your preferred atmosphere. Learning the types of homes and neighbors can help you develop a better understanding of what you want in a home.

Get Home Design Ideas

Another benefit of browsing an open house is to get inspired. Keep tabs on design trends and color palettes, and make note on potential layouts that catch the eye. This is a great time to see what you like and dislike in a home. Using this opportunity to explore different styles and layouts of homes prepares you for making a final decision on what you find appealing.



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.

January
23

Ways You Can Save Money to Buy a Home

Perhaps you are seeking more space or simply ready to start the next chapter in life. Either way, buying a home is a goal shared by many! Learning different ways you can save money to buy a home will get you on the right track, preparing you for exciting adventures ahead. From creating a budget to managing credit, you'll be glad you took these steps to homeownership.

Cut Back on Small Luxuries

Unfortunately, with saving money requires you to determine what you need to cut back on spending. Consider skipping the morning drive-thru coffee, you would be surprised by how much money you save at the end of the year! Other small luxuries that can be put on hold are cable TV, magazine subscriptions, manicures, and going out to eat. Although this may seem like a challenge, remember these are only temporary (and definitely worth it)!

Create a Budget

Set a goal for how much you desire to put into a down payment for your new home. This allows you to create a budget, giving you a timeline as to how long it will take to reach the set number. Setting aside a specific amount for current rent, bills, and other living expenses will show you how much you're left. Determine how much you're willing to transfer to your savings each month after bills have been paid and you'll be saving money in no time!

Save Your Tax Return

It can be tempting to spend the hefty tax return check that you've been anticipating all year. We suggest depositing the check directly into your savings so you are not tempted to spend the extra money. This is an easy way to instantly boost the number in your savings and speed up the home buying process.

Get Out of Debt

It may sound contradicting to save money while paying off credit card debt, but both can be done! While it's important to save money for a down payment on a new house, it's just as important to pay off outstanding debt. Your credit score greatly influences the loan amount and interest rate you will receive. Having a higher credit score will lower your interest rate, allowing you to save money in the long run. Making minimum payments on credit cards is an easy way to pay off debt while building credit.





Looking for more information on finding a new home?

Give Choice Properties a call today to speak with our award winning realtors!

November
13

Step-by-Step Guide to Getting a Mortgage Loan

The vast majority of home buyers will need a mortgage loan to achieve their dream of homeownership. For new homeowners, this process may feel overwhelming leaving you insure where to start. The experts at Choice Properties have shared the step-by-step guide to getting a mortgage loan, preparing you for what lies ahead.

Shop for a Mortgage

Just like shopping for homes, you should also shop for a mortgage loan rather than settling! All lenders offer different options, so it's important to research those with various interest rates, closing costs, and more. Completing this step will help you pinpoint any concerns lenders might have with your application, giving you time to fix the flaws leaving you an ideal match when it's time to make an offer on your dream home.

Get Pre-Approved

The goal of meeting with a mortgage lender is to get pre-approved for a loan. During this process the lender will go through your financial past, focusing on your income, debts, credit history, and other factors that influence a loan to determine how much money you can borrow. It is highly recommended to be pre-approved for a mortgage loan, as this shows sellers you have the financial backup to make a purchase. To apply for pre-approval, you will need:

  • Two years of federal tax returns
  • Pay stubs from the past 30 days
  • Quarterly statement of your asset accounts
  • Any other current real estate holdings
  • Residential history of the past 2 years
  • Proof of funds for a downpayment

Close the Deal

After purchasing a home and signing a sales contract, it's time to close the deal! When buying a home you "take title" of the property, meaning you are the full owner. Once you prove to the lender you now have the title, you then meet one final time for closing paperwork. This is where the buyer, seller, a lender representative, and any others involved will meet to sign all the paperwork, transfer all money owed, and hand you the keys to your new home.




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.

October
17

 

Read This Before Buying a Fixer Upper

Whether you're a first time home buyer or experienced with the home buying process, purchasing a house is an exciting time! Taking time to discuss your desires in a home with a trusted realtor will help make your dreams come true. For some, this may be newly built home with extra storage on a limited budget. Others may prefer to purchase a "fixer upper", which requires an open mind and deep conversations. The agents at Choice Properties suggest you read this before buying a fixer upper, preparing you with questions to ask along the way.

Questions to Ask Your Agent

What is the value in this neighborhood?

It's important to keep in mind the area in which you're looking to purchase a fixer upper. Considering your investment in the long run is critical with these projects, as you don't want to get stuck in a house you can't sell down the road.

Is the home located in a historic district?

Purchasing a victorian home to renovate is a dream had by many. Featuring original crown molding, wainscoting, and beautiful stained-glass windows. Your agent should make you aware of this, but homes in historical districts often have to be renovated with an association or to a city standard. This means obtaining approval for projects and updates, which also comes with a price tag.

Questions to Ask Yourself

How is the overall layout of the home?

Although changing the layout is possible, it's also an extra cost along with time added to the project. Considerations for how existing rooms flow and which walls are able to be knocked down to create a larger space should be kept in mind. Make note of the number of bedrooms and bathrooms you are seeking versus what the house currently offers. Will you have to add another bedroom or bathroom?

Do you have the time, patience, and energy for a fixer upper?

Choosing to completely renovate a home is a large project that requires many considerations. Are you prepared for unexpected issues or delays? Asking yourself these questions will help you decide if a fixer upper is truly what you are seeking.

Flipping a house is a big project, but can be done with determination!

Fixer uppers can be great investments in the long run, but require a promised commitment. Ask yourself if you are truly ready for a big project and tackle it head on, creating the home of your dreams!  If that answer is yes, it's time to call a Choice Properties agent to discuss the current options on the market!

 

 

Choice Properties understands your needs and desires when it comes to the home search. Whether you are looking to purchase a fixer upper or move in ready home, our team is ready to help. 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.

 

September
5

An Overview of the Mortgage Loan Process

Through the various steps of purchasing a home, the getting qualified for a loan may feel the most overwhelming for first-time homebuyers. The expert agents at Choice Properties understand this and are here to guide you through, which is why we created an overview of the mortgage loan process. From getting an assessment to a loan officer pre-approving you, we want you to enjoy every moment of making your dream home a reality.

Pre-Approval

The first step to obtaining a mortgage loan is go through a meeting with your lender to discuss credit score and credit history with a third party, called a tri-merge credit report. This will give you an estimate of how much money you can borrow based on financial information, such as your employment and income. Mortgage pre-approvals show sellers that you are serious with a home purchase, making you stand out among other interested buyers.

Pre-Qualified

During your research for a mortgage loan you may find pre-approval and pre-qualified, but it's important to know the difference. A pre-qualification holds a lesser meaning and is a simple glance at a borrower's credit and capacity to repay a mortgage. This is usually completed by a loan officer asking the borrower simple questions regarding credit and there is no third party involved. Although this step is good to have with your lender, it usually does not influence a seller or real estate agent.

Final Approval

This is the most excited step of the mortgage loan process! Closing on a loan means the mortgage is official and final disbursements are made. During the final approval, documents are drawn where they are then sent to the title company where the closing takes place. You have a three day window to view the terms of the loan before officially signing. Once the documents have been signed, you are then ready for move into a new home!

 

 

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.

July
23

 

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.

February
21

Why Downsizing in the Right Move

Why Downsizing is the Right Move

Moving into a smaller home may appear to be a step down, but it's actually got quite a few upsides. You save money, save time and have less clutter. In fact, downsizing could be just the fresh start you need. There are plenty of smaller houses for sale in Ohio that would fit your needs.

However, if you are thinking of downsizing, then it must be done the right way. We have some tips to ensure that your downsizing dream can become a reality.

Long Term Thinking

Planning ahead is key when you're looking at smaller homes. Did you have plans for the extra space you have now? Or is that just real estate being wasted, in which case you're better off selling and going somewhere smaller. But only you can make the decision of keeping or losing extra space.

Minimizing Upkeep

And it's not just the space, it's also everything that's in that space. Clean out the clutter, throw out what you can and sell the rest. That's cash in hand, and less stuff that you have to take care of. A larger family home can take several hours a week to upkeep, and it may even be impractical if your children are grown and out of the house.

Buying Outright

A probable advantage you'll see from downsizing is the ability to buy the smaller, less expensive home in cash and end up mortgage free. For individuals who are close to retirement, this is a very popular option. Statistics show that in 2016, sellers aged 62 and above sold them home for an average price of $250,000 and bought a new home for an average price of $240,000.

Moving Closer To Family

While it is true that it is the older generation, aged 62 and above who are downsizing, their primary reason for doing so in a lot of cases was wanting to be closer to family and friends. In a study conducted about downsizing, 21% of the participants stated that they were moving due to retirement, 15% because their home is now too large and 10% because the neighborhood they are in has become less desirable.




There are many upsides to downsizing. It frees you from the cost and time commitment of maintaining a home that's simply too large. It allows you to unlock your home equity, buy a new place and maybe even retire your mortgage. If you're in the market for a smaller home, look at houses for sale in Ohio. We're confident that you will find the perfect one to begin your downsizing journey.

December
13

 

 

 Comparing Renting vs. Owning

One of the hottest topics in housing is whether to rent or own a home. Market conditions and personal finances and other things factor into the decision to rent or own a home. Learn how calculations actually work in order to feel confident on deciding what is right for the budget and family.

 

Check Numbers

The first thing to understand is how math works for each individual looking at homes. Calculating monthly costs of home ownership, subtracting tax benefits and comparing the final figure will help gauge the difference between home rental versus home ownership in the same neighborhood.

Assume a credit score of 750, a $300,000 home purchase price with 10 percent down ($30,000) for a 30-year fixed mortgage. Current rates hover around 3.25 percent. A mortgage calculator will tally the total monthly cost as follows:

 

Mortgage payment of principal and interest  $1,175

Property taxes  $300

Private mortgage insurance (PMI)  $133

Homeowners insurance  $67

TOTAL monthly cost  $1,675

 

Calculate the tax benefit by deducting the mortgage interest and property taxes. Multiply the loan amount by $270,000 by a rate of 3.25 percent for a total of $8,775. To calculate annual property tax, multiply the $300,000 home price by a national average of 1.2 percent property tax to get $3,600. The sum of $8,775 along with $3,600 equals $12,375 in deductible costs. Based on the income needed to qualify for a $300,000 home, the tax bracket is likely around 28 percent. Multiply $12,375 by 28 percent for annual tax savings of $3.465. Divide that number by 12 months for estimated savings of $289. Subtract this number from the total housing cost of $1,675 for after-tax cost of $1,386.

Compare the estimated after-tax housing cost of $1,386 to market rent for a comparable home in the same city with similar size, quality and location.

 

Looking Ahead

The second thing to understand is that it takes time for owning to become cheaper than renting.  A cost-benefit analysis is helpful when determining which is more cost effective but also which provides the most benefit over the long term. A breakeven horizon is when buying becomes more favorable in a year when costs to buy become less than or equal to renting costs. When it comes to making an investment, it is important to note how long it will take for this to happen if questions remain as to the benefit of renting versus owning for the future.

 
 

Login to My Homefinder

Login to My Homefinder