Chuck Barry

cbarry3993@gmail.com   |   720-296-6217
http://www.chuckbarry.com

Home Mortgages: 15 Years vs. 30 Years

Which is better: A 30-year fixed-rate mortgage or go for a lower-interest 15-year one? The answer will greatly depend on your individual circumstances.

Typically, 15-year mortgages allow the borrower to pay off thier home mortgage quicker and save a significant chunk of money on interest. However, the monthly mortgage payments are higher. A 30-year mortgage for the same house offers lower monthly payments which enables more consumers to qualify for home purchases.

A 15-year loan means you are committed to making a higher payment each month, whether you can really afford to at the time or not. With a 30-year mortgage, you can pay your monthly payment and then pay extra towards the principal every month your budget allows.

While it’s true you gain more of a tax break from a 30-year loan, it shouldn’t be the main consideration when deciding on a term. The 30-year borrower pays less in yearly taxes because they pay significantly more in interest.

It all comes down to choice and circumstances:

• Choose the 15-year loan if you have the financial wherewithal to assume the payments. Your interest savings will be substantial and you’ll own your home faster.
• The 30-year loan offers lower payments and greater flexibility. You can always choose to pay more on your mortgage when the money is available.

The Importance of Color Selection

Try not to be offended if an agent suggests that you paint before placing your home on the market. They understand “color psychology.”

People’s reaction to color is immediate and it can have a tremendous influence on their daily choices, including whether or not they purchase your home. You may love your color choices, but when selling your home, you want the color scheme to appeal to the masses.

You can make your home stand out from the competition, sell more quickly and at a higher price if you use color effectively. Blues will feel cool, reds and oranges feel warm. Deeper shades of color imply intimacy and serenity.

Lighter exterior colors are favored because they can make the property seem larger. For older homes, you may want to consider historical accuracy, as this could be a big selling point as well.

For the interior, consider the purpose of each room. Kitchen and dining areas painted in “food colors” such as coffee browns, celery greens and scrambled-egg yellows will make the rooms feel more natural. Hallways are a great place to bring in the exterior colors for overall harmony. Master bedrooms in medium shades of green or blue for warm selling seasons, and rouge red for cooler weather. Other bedrooms can be painted in creamy tones of green, blue or a pale shell pink. Shades of blue, green or lavender can form a relaxing atmosphere in the bathroom.

When thinking about color, common sense helps. You should match other things in your home and keep a comfortable environment as well.

Get Your Home Documents Organized

As a homeowner, you accumulate all sorts of documentation the moment you make the offer on your home. Loan documents, inspections, insurance policies, receipts and warranties are just a few of the documents you may be collecting. Knowing where these items are can save you a lot of time and money.

Keep closing papers such as the deed, settlement statement, appraisal, disclosures, mortgage note, inspections and title insurance policy together in one place—preferably in a safe deposit box.

For other records, a practical record-keeping system doesn’t have to be expensive. Purchase an accordion file and label each flap with a different category. Those might include:

• Insurance Policies.
• Purchase and House Data.
• Property Taxes.
• Home Maintenance and Improvements.
• Warranties, Manuals and Receipts.
• Home Inventory.

Organizing your home files may take a considerable amount of time initially, but it will definitely be time well spent in the event you need the documents in the future.

Selling an "Ugly Home"

You’ve just inherited an old house in a distant location and want to put it on the market. You don’t have the time, resources or energy to make it perfect and just want a quick sale.

Or maybe you had renters who did substantial damage and you don’t have the money to make necessary renovations.

Just because your property needs work doesn’t mean you can’t sell it. Many buyers today are looking for deals and will see the hidden potential in your home.

So what to do? Here are a few ideas to consider when putting your "Handyman Special", Fixer-Upper" or "Ugly House" on the market:

• Leave brochures for new cabinets in the kitchen, color palette around the bedrooms.
• Help buyers visualize the possibilities. Create computerized images of what updates might look like.
• Secure bids from licensed contractors on necessary fixes and provide them to potential buyers. People may mentally overestimate the cost of a new roof, shower stall, drywall repair or fresh paint. Providing sample estimates will bring the home into clearer perspective.
• Work with your real estate agent to make the home as presentable as possible for the least amount of money.
• Nothing is going to attract people more than a lowered price. You will need to discount to gain an advantage over comparables in better condition.

A down-and-out house doesn’t mean you’re stuck. With small repairs, research and practical pricing, you can turn that “Ugly Betty” into a sale.