Tag Archives: Katonah Luxury Homes

Saving for a House: It’s More Than a Down Payment | Katonah Real Estate

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It’s easy to get caught up in credit scores when considering a home purchase. But as lenders continue to loosen requirements, the need to have money in the bank doesn’t get any less acute.

Getting prescriptive about how much you need in savings to satisfy a mortgage lender is tough business. The answer can depend on a host of factors, from the type of mortgage and size of the loan to the property itself and more.

You’ll most likely need a solid chunk of change upfront to cover a down payment and closing costs. Lenders might also want to see a stockpile of “reserves,” which often translates to a certain number of months’ worth of mortgage payments.

The bottom line is that it’s tough to talk specifics about your bottom line. That’s why it’s important to get a solid understanding of your mortgage options and seek clear guidance from lenders.

Credit scores are critical, but so are income and assets when you’re applying for a home loan. Here are some of the important savings you’ll need to accumulate first.

Down Payment Needs

Down payments are inescapable for the vast majority of non-cash homebuyers. Outside of state or local programs, only government-backed VA and USDA rural development home loans allow qualified borrowers to purchase with no money down.

Conventional and FHA loans typically require minimum down payments of 5% and 3.5%, respectively. On a $200,000 mortgage, that’s $10,000 for conventional and $7,000 down for FHA. But buyers often put even more skin in the game.

Conventional borrowers last month had an average loan-to-value ratio of 80%, according to mortgage software firm Ellie Mae. For FHA loans, it was 95%. That means buyers are putting down an average of 20% for conventional loans and 5% for FHA loans.

Existing homeowners often have an advantage because they’re able to put the proceeds of a home sale toward a new purchase. It can take first-time buyers years to scrape together enough money for a down payment.

That’s partly why home sales among first-time buyers hit their lowest point last month since the National Association of Realtors began tracking the figure in October 2008.

 

http://finance.yahoo.com/news/kind-savings-mortgage-110023166.html

When to pay off your mortgage aggressively | Katonah Real Estate

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The clear advantages of paying off your mortgage as quickly as possible have changed quite a bit over the past few years. The urgency to pay it off has somewhat diminished, as interest rates have plummeted to historical lows. It’s no longer the black and white decision it was back when interest rates hovered between 6% and 9%, and even the 11% to 13% we saw a couple of decades ago.

I am a big proponent of paying down that ugly mortgage beast as soon as is practical. But, before you go cutting a check to the bank, there is a pecking order of financial priorities you need to address before you consider tackling your mortgage.

In order of importance, here are the places you need to put your financial attention first:

Take The Cards Off The Table: Pay off all credit cards with high interest rates. Consider the huge discrepancy between credit cards with interest rates of 13% – 23%, and a 4% mortgage interest rate.

In Case Of Emergency: You need to build an emergency fund, ideally 8-12 months of living expenses. Yes, today’s job market is improving, but if you suddenly find yourself facing a layoff, you need to be prepared to sustain up to one year of living expenses.

Build Up For Retirement: Are you able to make the maximum yearly contributions to your retirement accounts, 401K, IRA or an equivalent?  Ask your accountant what the maximum allowable is for you and go for it!

 

http://www.usatoday.com/story/money/personalfinance/2014/03/12/when-to-pay-off-mortgage/6327487/

Atlanta House with ‘Gone with the Wind’ Link Asks $3.25M | Katonah NY Homes

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22 images

Location: Atlanta, Ga. Price: $3,250,000 The Skinny: Though Atlanta has played host to plenty of culturally important events, including the Olympics, the first season of the Walking Dead and, of course, the canonical live recording of Free Bird, the 1939 premiere of Gone with the Wind was such a huge milestone for the city that any association with it is trumpeted to this day. That’s the case with this 1935 home in the Peachtree Heights district of Buckhead, which the BrokerBabble claims hosted the cast party for the film. And it might very well have, though the homes where Clark Gable is said to have been fêted approaches the number of homes wherein George Washington purportedly lay down his wigged, weary head for a nap. Designed by Atlanta firm Cooper and Cooper, it’s all classical symmetry and reassuringly staid formalism (a combination the dim echoes of which can be seen in McMansion developments across the Sunbelt), while the decor veers queasily between traditional (downstairs) and blandly contemporary (upstairs). It’s asking $3.25M, which includes almost two acres of beautifully landscaped grounds that Vivien Leigh might have strolled through.

http://curbed.com/archives/2014/03/10/atlanta-home-with-gone-with-the-wind-connection-asking-325m.php

 

Four-Step Guide to Refinancing Your Home Mortgage | Katonah Real Estate

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Refinancing your home mortgage can be a great way to save some money in the long run. If rates have dropped since you obtained your original loan, you can potentially see a substantial drop in your payments. But there are other reasons you may also want to consider refinancing your home mortgage.

It gives you the option to reach into the equity that’s built up in your home since you purchased it — it’s known as a “cash-out refi.” It lets you take out a new mortgage based on the home’s current worth, pay off what you still owe on the old loan, and pocket the difference, Realtor.com says. You could also shorten the time period that you’ll be making payments, which can be done by swapping your current 30-year mortgage for a 15-year loan or another similar option.

But how do you know when it’s a smart move for you to go through the refinancing  process? And when exactly will it start saving you money?

Click through for our guide to help you determine if it’s the right time to refinance

1. When to consider refinancing

source: http://www.flickr.com/photos/sleepyjeanie/

source: http://www.flickr.com/photos/sleepyjeanie/

According to USA Today: “Some borrowers can save money when they spot a rate that’s at least half a percentage point lower than their existing rate, experts say. More typically, people tend to move when they see more than a full percentage-point drop.”

ABC News reports that it’s also important to ask yourself this question: How long will it take for your new monthly payment to yield enough savings to make up for the closing costs for the new loan? If you can find a way to keep your closing costs down, refinancing becomes an even smarter option. And you should expect closing costs on refinancing to be even lower, because there is less work for the lender and title company to do.

2. Determine when it will start saving you money

think money save

Figuring out how long it will take you to start recouping costs is key. For example, someone who is in their 80s probably shouldn’t spend $4,000 upfront in order to save $50 a month, according to USA Today. Just make sure you’re looking at your costs and how long you plan to stay in your home. If you plan on being there for quite a while, there’s a good chance refinancing is a smart option.

Realtor.com recommends weighing monthly savings against upfront costs. Let’s say you can save $100 a month on your mortgage payment by refinancing but it requires you to pay $2,500 upfront — then you’d need to keep the new loan for at least 25 months to make up the difference. If you’re not going to be in your current house for at least that long, it’s not going to do you any good.

When in doubt, talking to a mortgage broker is always a good idea. They can look at your specific situation and figure out what’s going to be your best move.

3. Where mortgage rates are at

housing Real Estate Mortgage Loan

In February, the average rate on a 30-year fixed home mortgage was 4.28 percent, which is near historically low levels. A 15-year loan was 3.33 percent, according to Freddie Mac, a mortgage buyer.

These are great rates, but economists aren’t expecting them to stay that low for long, according to USA Today. “Most economists expect home sales and prices to keep rising this year, but at a slower pace,” the publication reports. They forecast that both will likely rise around 5 percent, down from double-digit gains in 2013.”

This means that if it’s something you’re interested in doing, the sooner the better. As interest rates continue to rise, it’ll save you less money when you do make the move to refinance.

4. Preparing to refinance

Source: Thinkstock

You’ve decided refinancing is for you, and so your next step is to start the loan process again. Make sure to get all of your records together and check to see that your credit profile look goods, Realtor.com says: “Your lender will need to verify your income, employment, account balances and the like, so be prepared. The lender will tell you exactly what you need, but generally you’ll be required to produce current pay stubs and savings and checking-account statements.”

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http://wallstcheatsheet.com/personal-finance/mortgages/four-step-guide-to-refinancing-your-home-mortgage.html/?ref=YF

Before you buy, try that mortgage on for size | Katonah Real Estate

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If you’re a future homebuyer, you might have used one of those “How much mortgage can I afford?” calculators online. These calculators typically gather information like your down payment amount, credit score range, monthly or annual income and debts.

 

Then, they’ll spit out an estimate of what a bank might lend you mortgage-wise.

These calculators work primarily by figuring out your debt-to-income ratio and then how much you can afford to pay for your monthly mortgage payment. This is similar to how banks decide how much to lend you.

The typical bank limit on monthly mortgage payments is about 28 percent of your gross monthly income. Therefore, the bank thinks you can devote up to 28 percent of your household income to your mortgage payment and expenses (including taxes, insurance and association dues).

Banks will also typically allow a total debt-to-income ratio of up to around 36 percent. This means that your mortgage, credit card payments, student loan payments and car payments shouldn’t exceed 36 percent of your total monthly income. (Note that if your other debt payments are already at 15 percent of your monthly income, you only have 21 percent of your income to devote to your mortgage, regardless of the 28 percent rule.)

So when you put your current income and expenses into a house affordability calculator, it will tell you how much you can afford to pay for your home per month. Then, based on factors such as estimated interest rate, tax payments, insurance payments and available down payment, it’ll tell you how much house, in total, you can afford.

 

http://homes.yahoo.com/news/before-you-buy–try-that-mortgage-on-for-size-211830352.html

Lawn Care Tips for Busy People | Katonah NY Homes

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A beautiful home is not only achieved through stylish interior design, but also through smart lawn care. Your lawn is the first thing that people notice about your home. Keeping a clean and healthy-looking lawn demands a lot of time and maintenance that may seem like a full-time job. In the fall you will want to have a 4 stroke leaf blower, to make it easier to get rid of all those leafs. To achieve a lush green lawn, you need to commit to mowing it on a weekly basis to prevent the grass from turning yellow and dry. Lawn mowing also keeps your grass from growing too high and thwarts pests (e.g. weeds and animals such snakes and other vermin) from invading your yard.

Professionals barely have enough time to maintain even just a healthy lawn. Although we can’t add time to our busy schedules, we certainly can make smart changes to common lawn maintenance practices through these tips:

  • Know when to feed your lawn and stick to the seasonal feeding schedule. Do not feed your lawn daily so the grass will stop growing faster according to King Green Lawn Care.
  • Don’t overuse your lawn mover. Allow a healthy growth of herbs in your lawn and use an effective lawn weed killer.
  • When mowing the lawn, try to cut them a little longer and allow herbs such as thyme to grow. This makes the lawn look greener, especially during dry spells.
  • Remove hard-to-mow areas or those areas that can’t be accessed by the mower. If you want to easily maintain your lawn, especially these tricky areas, consider using gravel to give your lawn more dimensions.
  • Get a high-powered mower that can do heavier tasks for you. Look for a machine that does most of the work in a single press of a button.
  • Leave some of the cuttings, but not all of them. These will provide enough nutrients in the soil and will help the grass to grow stronger and greener.

If you are a beginner, a gardener or an individual who does not have much time taking care of your lawn, at least prioritize these three maintenance tasks:

http://finance.yahoo.com/news/lawn-care-tips-busy-people-204228333.html