Should You Keep Investing At All-Time Highs?
The market has never been higher, so it has no where to go but down. Actually…that’s wrong. And it’s always been wrong.
The market has never been higher, so it has no where to go but down. Actually…that’s wrong. And it’s always been wrong.
Recent data from the U.S. Census Bureau shows that home sales were up more than 17% in June 2020 from the month before, and up more than 13% compared to the year prior. Those who have the means to buy a second home are wise to take on mortgage debt (or reorganize their current debt) […]
The post How to Buy a Second Home that Pays for Itself appeared first on Good Financial Cents®.
Change has to start somewhere, and for many people that change is easier to make if the starting point has some meaning. It can be a birthday, an anniversary, or any other date with some symbolic weight. Most commonly, people…
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The post The 5 Best Financial New Year’s Resolutions appeared first on MintLife Blog.
Annaâs email requesting help with her finances began with a unique confession. âFarnoosh, my money problem garners little sympathy,â the 32-year-old wrote. âMy issue is that I make too much of it.â Now, THIS is interesting, I thought. I immediately…
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The post Mint Money Audit: Managing Money When You Make Enough appeared first on MintLife Blog.
These are the steps that introduced me and my husband to what financial independence is and for that I am eternally grateful. But a lot of important considerations get looked over if you just find a list of the steps…
The post The Baby Steps Explained, And Why They Work! appeared first on Modern Frugality.
Well, itâs a new year and it certainly didnât begin quietly. Might as well address the elephant in the room when it comes to your mortgage. This isnât the first time Iâve discussed the possibility of war and its impact on mortgage rates, with the last discussion centered on the Syrian conflict back in 2013. [&hellip
The post Mortgage Rates vs. a Potential War with Iran first appeared on The Truth About Mortgage.
In this article: Check your financing options Locate the right lot Plan and design the home Hire professionals Understand the process of building a house If you can’t find your dream home on the market or if you want to create a home that’s uniquely yours, you might consider building a house. Buyers who decided […]
The post Steps to Building a House appeared first on Home Buyers Guide.
Even the most level-headed couples can go a little crazy when hunting for a home. If not careful, stress levels can suddenly shoot through the roof.
This shouldn’t come as a surprise. Most homebuying decisions swirl around major life changes: marriage, a new baby, job relocation, retirement, and downsizing. Those are tectonic shifts in one’s life, and adding a hefty down payment and a 30-year mortgage to the mix doesn't ease the burden.
Tensions don’t end there. A home isn’t just an investment; it’s a place you’re tethered to for years. You’re literally shaping your future by the neighborhood you choose.
In such an emotional situation, people easily become overwhelmed. In fact, a U.K. report found that 70 percent of respondents thought buying a home was a critically stressful time in their lives. Only one other life event was ranked worse: getting a divorce.
Yet it’s not practical to live in the same place forever. In other words, it’s up to every couple to rethink the way they handle the house-seeking experience, starting with preparing themselves for the reality of the situation.
Any homebuying newbie can relate to how complicated the process can be. When two people are involved, however, the strain amplifies. Luckily, knowing a few upfront expectations and being prepared to make tough decisions can ease the pressure.
First, understand the substantial financial burden. You must openly talk about your expenditure expectations with your partner. Partners can have significantly different ideas of what they are willing to spend to have a comfortable, safe home.
You must also accept that both of your priorities won’t necessarily align. For example, you drive east for work, and your spouse drives west. Whose work is more important if you can’t find a house centralized between the offices? In addition, what if the new home allows your partner to be 10 minutes from relatives, while you have a two-hour trek to visit yours? Until these considerations are aired out, a couple will be far from acing the homebuying process.
Overall, communication is essential. In fact, with a few steps, you can turn looking for the perfect house into a way to strengthen — not wreck — your relationship:
Ironically, people often discuss stretching their budgets before they’ve even set them. Take a pragmatic approach, and know your budget first. A fast way to figure out your top monthly payment is by multiplying your combined monthly income by 0.25. For example, if you two make $10,000 a month, your mortgage payment with taxes and insurance shouldn’t be more than $2,500.
At that point, you can work backward. Use a mortgage calculator, like the one provided by Zillow, to figure out that a $2,500 monthly payment equates to a $500,000 house. Don’t even consider asking your mom to co-sign a loan to get more money. Instead, acknowledge the fact that you two can only afford what you can. Accepting this will help you both make decisions logically.
You know you can afford a $500,000 house, but don't initially schedule showings in that price range. The first three homes should be listed at about 20 percent below your budget. As you walk through the homes, notice what you like and what you don’t. For your next house, go up to the $450,000 level. Jot down what you love and hate. Finally, step into a $500,000 home. Is it tremendously better than the $450,000 one? Are its advantages worth an additional $50,000?
By starting at “good” options and moving toward “best” choices, you gain control over the process, and both partners have a chance to air out their objections. But be warned: If you flip the order and start with a $500,000 listing, anything less would seem subpar.
Try to quantify preferences to put a more rational tenor on the process. An example is weighing the objective value of school districts and home prices. Typically, a home in a stellar school district will cost up to 25 percent more than comparable homes. Thus, for your money, you would have to get a smaller home to live in a preferred community.
Talk about this not as a way to “steal” opportunity from your kids but as a way to look at the pros and cons of each decision. For example, if you have 15 percent less of a house, your kids could attend a better school. This is a more rational approach than blaming your partner for not caring about your children's education. Quantifying priorities allows both of you to look at the big picture.
Couples involved in buying homes often forget to incorporate productive, positive phrases into their conversations. Even if it doesn’t come naturally, emphasize how grateful you are for your partner throughout the process. Talk about how you appreciate that he or she has helped make it possible to look at better homes. Or admit that you’re blown away by the flexibility you’re seeing in your partner’s willingness to incur a longer commute to work.
While it isn’t an easy feat to be affirmative, you'll end up with better long-term results. You’re starting a new chapter together, after all. Don't you want your partner to know you are here for him or her in this journey? All it takes is a sprinkling of gratitude.
Whether or not you’re religious or spiritual, make time for reflection before signing on the dotted line. This will ground you and your partner and create a sense of much-needed calm. Ask yourself: “Is this really the direction for us? Is this where we’re supposed to be?”
In addition, vow not to bicker about dollar amounts after making your choice. Rather, use your home as a launching pad for the next page of your relationship.
Who has time to heap additional stress into their lives? Avoid the price of a divorce lawyer, and focus on the exciting possibilities ahead that come with buying a new home. The homebuying process might not be a cake walk, but your marriage doesn't have to pay for it.
An entrepreneur at heart, CEO Mike Kalis leads the team at MarketplaceHomes.com, a Detroit-based brokerage that specializes in new construction sales and property management. If you purchase a new home through Marketplacehomes.com, we'll agree to buy yours. Marketplace Homes has sold more than $3 billion in new construction homes through its unique home trade-in system and manages more than 3,500 single-family properties for investors who have 1 to 10 properties. It also offers new-construction homebuyers a guaranteed lease on their previous properties for up to six years.
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Thanks to record-low mortgage rates, refinancing activity has jumped in recent weeks â especially with older-aged Millennials.
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