Pros and Cons for Having A 2nd Mortgage

Did you know you could have access to the equity you built on your home without having to sell the house itself? By taking a second mortgage, you could have access to a large sum of cash while still enjoying your home. There are two kinds of second mortgages: 

• When taking an equity loan on your home, you will have access to a lump sum of money usually financed by a fixed rate loan: you will repay a set amount of money every month 

• When taking a home equity line of credit (also called HELOC), you will basically use your loan like a credit card: your lender will decide on a maximum borrowing limit, and you can borrow as much or as little as you want within these limits over time. This type of loan generally has a variable rate. 

Although having access to this cash can be an attractive idea, there are pros and cons to a second mortgage you will need to keep in mind before taking that decision. 

 

Pros:

• Quick access to a large sum of cash at a favorable rate: a lender will usually approve you to borrow 75 to 85 percent of the loan-to-value ratio of your first and second mortgages combined. Several factors like your credit score will determine your interest rate, but they are usually significantly lower than the ones you would get for a credit card. However, keep in mind that the interest rate on your second mortgage is likely to be higher than the one on your first mortgage since the second lender is taking more risk. 

• Your loan payment might be tax deductible: consult your tax adviser to check is the interest paid on your second mortgage might be tax deductible
• Use the money to improve your equity on your house: a common use for the money obtained from a second mortgage is to improve your home, by either renovating it or adding elements like a deck or an addition. Either way, you are adding to the value of your home. You could also use the money to consolidate your debt, avoiding the high interests on your credit card debt

 

Cons: 

• You could lose your home: since you are using your house as collateral, you would lose your house to foreclosure if you were to default on your payments. Choose what you spend your money on wisely and don’t overextend yourself. For example, funding your lifestyle or spending it on frivolous items, like a luxury vacation, could put you in a difficult spot

• There are significant fees to getting a second mortgage: like for first mortgages, second mortgages (a home equity loan in particular) comes at a cost. You will have to pay for an appraisal, closing costs, application fees and so on. For a home equity loan, count between 3 and 6% of the total loan amount in closing fees. Although there are no closing fees for a HELOC, the interest rates tend to be higher, and you will pay more in the long run. 

Although acquiring a second mortgage can sometimes be a great idea, consider carefully which type of second mortgage makes the most sense for you, and, most importantly, what you will be spending this money on. 

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How to Install A Deadbolt Lock For Your Front Door

Every front door should be secured by a deadbolt. Deadbolt locks are fundamental to preventing forced entry and losing everything you value. Below, we explain how to install a deadbolt lock on your front door and delve into why deadbolts are essential for home security.

 

 

How to Install a Deadbolt to Your Front Door 

Installing a deadbolt is easier than most think.  Most front doors can be secured with a single cylinder deadbolt.  This type of deadbolt is keyed on one side.  Double-cylinder deadbolts are keyed on both sides.  If a window is positioned by the deadbolt, opt for the double cylinder variety.  Everyone in the house knows where the key is and remember to put it back in place without exception.  Though you can call a locksmith to install your deadbolt lock, doing so is costly.  Take the DIY (do it yourself) approach and you will be able to get the job done in less than an hour. 

 

Select a grade 1 deadbolt.  This grade of deadbolt is the toughest of them all.  The first step is to install the strike box.  This box bolsters deadbolt strength by spreading out the force of impact across a wide space.  The strike box also connects the strike to the frame instead of merely the jamb.  Opt for a rectangular faceplate instead of a round one.  The round variety should be limited to steel doors.  The rectangular face plate recesses into the door, bolstering its strength that much more.  Drill the face holes, place the deadbolt in the edge hole, screw the dead bolt to the door edge, add the bolt mechanism, drill the dead bolt hole in the jam and set the strike plate with screws.

 

 

 

 

Why Deadbolts are Essential to Home Security 

Forced entry is the primary means of entering homes targeted for burglary.  A door lacking a deadbolt will not hold up to a powerful force.   A deadbolt is necessary to keep the door securely in place.  This type of lock has a steel bolt that moves all the way to the door jamb and door frame strike plate.  However, it is a mistake to assume any old deadbolt will suffice.  Opt for a high-quality deadbolt featuring a hard steel bolt to ensure burglars cannot force their way through your front door.

 

The deadbolt you select must extend all the way to the door jamb hole in order to function as it should.  This hole should be reinforced with a robust metal strike plate.  The lock can be compromised if the bolt does not protrude all the way to the hole or if a strike plate is not in use.  Most homeowners are intrigued to learn burglars who kick in doors break the door frame as opposed to the door itself.  This is exactly why every homeowner should use 3-inch screw to reinforce the strike plate in the frame studs.  

 

 

 

 

Do not Assume a Regular Lock Will Protect Your Home 

The bottom line is a regular lock will not suffice.  Burglars have no trouble knocking down doors secured with basic locks.  These simple locks can be broken with a crowbar or even with lock picking.  There is no way to pick a deadbolt lock.  Nor can this type of lock be broken with a crowbar.  Deadbolts are comparably dense and strong, capable of withstanding powerful physical forces without giving way. 

 

The money  you spend on a deadbolt for your front door is worth every single penny.  Even if the deadbolt does not prevent forced entry, it will slow burglars attempting to infiltrate your home.  Every second counts as burglars are that much more likely to be identified if they have to spend several minutes or longer attempting to gain access to a home protected by a deadbolt.

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The Average Living Costs in Florida

There’s a lot to love about living in the Sunshine State. The warm weather, the theme parks, and the beautiful beaches mean it’s basically an eternal summer. Florida is also home to some of the fastest growing cities in the country like Jacksonville, Orlando, and Tampa. This means there’s a boom in economic opportunity, and many people are finding themselves heading south full-time. 

 

We all love traveling to Florida, and it’s known as one of the top retirement destinations in the world. With all of that said, what’s it actually like to live in Florida? Is it an affordable place to call home, or do you need a lot of savings to move to the Sunshine State? This guide will take an in-depth look at the average living costs in Florida. 

 

 

Owning or Renting a Home in Florida

First, let’s look at the housing market in Florida. During the market crash, Florida was hit particularly hard, and this led to a high rate of foreclosures. Luckily, the state is recovering quickly, and you can find a lot of affordable homes in both cities and suburbs. 

 

Because Florida is such a large state, it’s hard to give a single estimate for the average home cost. According to Zillow, the average home in Florida is valued at $231,000. This is on the rise, and this average has gone up almost 8% in the last year. The most expensive cities to own a home in Florida include Naples and Miami, while more affordable choices are Orlando, Tallahassee, and Jacksonville. 

 

If you’re not currently in a position to buy a home in Florida, you might have to pay higher rent prices. In most cities, renting is more expensive than buying property, though you do have a lot of options. The average rent for a studio apartment in Florida is $1,128 which is $116 above the U.S. average. Depending on the city, this could be more or less. 

 

 

Utilities in Florida

Because the weather is so warm in the summer, you can expect to pay above average each month for utilities. On average in a city like Orlando, families spend $127 a month for basic utilities. These include electric, heating, cooling, water, and garbage. This is higher than the national average, and it will be something to consider in your overall budget if you choose to live in Florida full-time.

 

 

Food and Transportation Costs

Luckily, you’ll save some money on food. No matter what type of food you eat, you’ll find it’s generally lower cost here than in other states. Due to the tropical weather, you’ll also find a lot of unique fruits and vegetables that aren’t available in other parts of the country. 

 

However, transportation costs will likely make up for the lower cost of food. While gas prices in Florida are similar to the national average, the average commute time is almost 30 minutes. There are limited public transportation options, and having a car is a necessity since most things are spread out large distances. In addition, some cities have extensive, costly toll roads which can easily add to your monthly budget. 

 

 

Taxes in Florida

Finally, you’ll be happy to learn that Florida is a low-tax state. There is no state income tax, and the property tax rate is 1.1%. This is clearly a big draw, and it’s why so many retirees choose Florida as their home. 

 

While you’ll find a statewide tax of 6%, this is higher in some cities with a county tax. There is also a special tax on alcohol, gas, and phone services. Overall, Florida is a state with a relatively low tax burden for the average taxpayer. 

 

 

Living Costs in Florida

As you can see, there are a lot of reasons to call the Sunshine State home. The average salary in Florida is around $40,000 a year, and the costs of living are reasonable depending on the city you choose. The biggest decision you’ll need to make is whether to buy a house or rent. As you can see above, buying is often a better financial decision, but this will depend on your situation. 

 

In general, living in Florida comes with a lot of perks. Aside from the year-round sunshine, you don’t have to worry about a state income tax. A lot of things are cheaper here, and it might be the right fit for your family. 

The post The Average Living Costs in Florida appeared first on National Cash Offer.

source https://nationalcashoffer.com/the-average-living-costs-in-florida/

What Are The Selling and Buying Rights for Closing on a Home?

Buying and selling a house can be a stressful and vulnerable time for every party involved in the closing. To make sure that the process goes smoothly, make sure that you are familiar with your rights and obligations as a buyer and as a seller ahead of time! 

 

As a buyer, you are entitled to the following elements: 

• You have the right to house-hunt without facing discrimination thanks to the Fair Housing Act which prohibits discrimination in the sale, rental, or financing of dwellings and other housing-related activities on the basis of race, sex, disability, color, religion, familial status, or national origin.
• You have the right to know about any potential health hazards linked to the property, including waste management, water supply, insulation, hazardous materials (such as lead paint). Disclosure agreements vary state by state: you can find which forms are requested from the buyers here. 
• You have the right to made aware of the financial history of the property, including property taxes and any encumbrance on the title (such as liens, easements, or any other issues)

• You have the right to access any information that will help you get a fair deal on the property. This includes an objective appraisal, and market price analysis and comparison
• You have the right to have access to all the information regarding closing, including a copy of the purchase and sale agreement, a walk-through of the property before closing and access to the settlement statement at closing

 

As a seller, you are also protected by real estate laws and have the right to the following elements: 

• You have the right to advertise the property for sale in a public listing or another similar forum, with the help of a real estate agent or not
• You have the right to set a price for your property that you deem reasonable, backed by truthful and accurate information
• You have the right to request a home inspection prior to closing
• You have the right to protect yourself by requiring that a deposit or a certain amount of the purchase price be placed in escrow before closing, and may request verification of financing or a mortgage loan before the sale is finalized
• Finally, you have the right to accept or refuse an offer, for example, if you find it to be too low, if you are worried about the potential buyer’s financing abilities, or simply if you changed your mind about selling the house in the first place. However, per the Fair Housing Act, you cannot refuse to sell your property to a specific buyer based on his or her race, color, sex, familial status, or national origin.

 

Shall any legal issues arise during the closing process from either the buyer or the seller, the best course of action would be to hire a real estate lawyer. He or she will be able not only to help you know your rights but also to provide legal representation and council if the dispute was to lead to a lawsuit or any other legal proceeding. 

The post What Are The Selling and Buying Rights for Closing on a Home? appeared first on National Cash Offer.

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Can You Still Rent A Home with Bad Credit?

Some landlords won’t even meet with you if you have a bad credit score. Even if your credit score isn’t where you’d like it to be you still deserve to have a place to live. The good news is you can still rent a home if you have a bad credit score. So how exactly is that possible? Let’s discuss your options so that your credit score isn’t holding you back anymore from a beautiful home.

 

 

Find A Co-Signer

If you find yourself struggling with bad credit then reach out for support. A family member may have a better credit score than you and could be willing to help out. By becoming a co-signer, they will be taking on a considerable risk. If rent is not made, they will be coming to them as well, and if the rent doesn’t get paid, then their credit score will be taking a hit as well. If you find someone to cosign with make sure you meet your responsibilities for them as well.

 

 

Make A Larger Deposit

Making a larger deposit, if your income allows it, can have a landlord overlook your credit. By doing this, it shows the landlord that you do have means to pay for the property. However, the one taking the most risk there won’t be the landlord, it will be you. By spending more upfront, you may put yourself at risk in other areas financially. Make this decision after taking a long look at your budget!

 

 

Get A Good Reference

If you have been paying to live somewhere else for a while despite your poor credit, then reach out to that landlord. Ask them if they can draft up a letter vouching that you pay your rent on time. This can go a long way with your future landlord and make them more open to you living on one of their properties.

 

 

Be A Friend With Your Future Landlord

Get to know them and be honest with them how you would like a friend. Explain to them the situation of how you got into your credit situation, and maybe they will understand. By being this way, it will show that you are direct and honest about your situation and could potentially be that way with your bills. 

 

 

Look Around 

You might be able to find a location that doesn’t check your credit score when applying to rent. This may be difficult, but these places do exist. Just make sure the area is safe and where you want it to be, don’t sacrifice too much.

 

 

Improve Your Credit

If you find yourself not moving out within the next six months, then start working on ways to improve your credit. There are a plethora of sites that assist with this process, and it’s never too late to start growing. Get out there and make the life changes necessary. 

The post Can You Still Rent A Home with Bad Credit? appeared first on National Cash Offer.

source https://nationalcashoffer.com/can-you-still-rent-a-home-with-bad-credit/

Four Reasons Why You Should Not Break your Lease

Are you thinking of moving out of your present place for a more suitable one before the determination of your lease? Are you aware that what you are planning to do is called “breaking a lease,” and it has grievous effects? Do you know that a lease is legally binding and its determination only could save you from legal implications when you break it? 

 

The consequences of breaking a rental contract vary from state to state. However, the most common and notable of them is that it would hurt your credit. This article discusses the effects of breaking your lease and ways to break it without incurring costs. 

 

 

Effect of Breaking a Lease

• Early termination fees: Early termination clause is available in several tenancy contracts. When it is available, it usually comes with a hefty financial burden on the defaulter. The provision often permits tenants to break the lease subject to the payment of the fee prescribed in the contract. The tenants could pay the rent of the building till a new tenant is found. They could also pay either a month or two months upfront payment at the determination. 

 

• Credit score: You should think of your credit score if you are planning to break a lease. Most of the time, the landlords initiate a debt repayment plan in a court via breach of contract. This could then result in a debt judgment which might be reported to the necessary authorities. The debt judgment would affect your credit. It usually takes up to seven years before your credit could be free from any debt judgment.

 

• Civil Lawsuit: Lease is a legal binding agreement whose breach could amount to a lawsuit. Landlords have the right to take legal action against you if you choose to break the lease. Though you might think you had given the landlord enough notice of 60 days at most, you would still be considered a lease breaker if you do not take the responsibility of the rent payment within the period of notice. 

 

• It becomes hard to find a place: While breaking a lease can be interesting, renting a new home could be a little bit hard. Most of the time, the new landlords often find it important to consider your credit report. Any negative information which ranges from breach of contract, debt or bankruptcy could deny you from getting your rental application approved. 

 

 

Conclusion 

Not every landlord is interested in getting hooked in the hassles of breach of the lease. As a result, they try everything possible to ensure that you are satisfied with your rental or have an avenue to discuss with them in case you are having a problem with the rented apartment. 

 

For your credit sake, you can always break your lease with little or no damage if you are smart with it. You can check through the lease and come up with a valid reason to break the lease. Lawyers and lease-breaking companies are always available to put you through some ways by which one can break a lease. Apart from that, a good understanding of how to communicate and persuade effectively would save you if you choose to speak with your landlord over your intention to break the lease. Your willingness to work with your landlord by bringing in a new tenant or paying for the rest of the lease until they get a new tenant would keep your credit history clean. 

 

So, before you break a lease today, you need to think twice.

The post Four Reasons Why You Should Not Break your Lease appeared first on National Cash Offer.

source https://nationalcashoffer.com/four-reasons-why-you-should-not-break-your-lease/

What To Know Before Refinancing Your Home

If you are locked in a high-rate mortgage that is affecting your finances, you might have considered refinancing your house However, it is not a miracle solution for everyone. A common misconception is that refinancing your home essentially consists in updating the terms of your real estate loan. It is not: refinancing your mortgage comes down to taking down a new mortgage entirely. 

 

To know if it is the right choice for you, here are a few things you must consider before taking the plunge. 

 

 

1. How does the terms of your current mortgage compare to your new terms?

Unlike a personal or auto loan, refinancing your mortgage is not free: it comes with closing fees, usually equivalent to 1 to 5% of your new loan amount. For a new mortgage to be worth it, you must consider the difference in interest rate between your new and your old mortgage. How long will it take you to recoup the impact of your closing costs with your new loan? 

A rule of thumb is that your new mortgage interest rate should be at least one point lower than your previous rate to be worth it.

 

How does the terms of your new mortgage will affect your private mortgage insurance? If your house equity has increased during the life of your previous loan, you might not need to pay PMI anymore. However, if the value of your house has decreased, you might need to start paying for a PMI. 

Another thing to consider is how far from the break-even point you are in your current mortgage: if you are planning to move at short to medium term, but that you have been paying your current mortgage long enough that your payments go towards the principal of your loan rather than the interest, refinancing might not be an interesting option. 

 

Refinancing can also be an interesting option if you want to change the type of mortgage on your real estate property entirely. If you started with an Adjustable Rate Mortgage, you might qualify for a lower fixed-rate mortgage. 

 

 

2. Can you qualify for a new loan with better terms than your previous one?

Like for any new real estate loan, your lender will consider several factors before granting you a new mortgage. Don’t hesitate to shop around to see which lender might be willing to offer you more interesting terms. 

If your credit score has gone up since you got your old loan, refinancing with better terms might be interesting for you. However, if you have fallen on some hard time and your credit score has taken a hit, refinancing might cost you more. If that is the case, spending some time working on improving your credit score before refinancing will save you money in the long run.

 

How much equity you have in your house will also be crucial for your lender to decide on the terms of your loan: if the house values in your neighborhood are going down, now might not be a good time to refinance. To qualify for more advantageous terms, you should have at least 20% of equity in your house. 

Lenders will also consider your debt-to-income ratio before granting you new terms to your real estate loan, so pay off whichever debt you can before applying for refinancing. 

 

 

3. What is your goal for your house?

Before refinancing your home, you must ask yourself why you want to apply for a new loan. Getting a lower down payment is only the short answer to a more complex question.

If you are planning to move in the semi-near future, refinancing probably will not save you any money.

 

Refinancing can be an interesting option if you are trying to pay off your real estate property sooner than later, before retiring for example, refinancing your mortgage from a 30-years term to a 15-years term can raise your monthly payments but will save you money in the long run since you will not spend as much on interest.

Refinancing might also allow you to cash-out on your house equity. However, consider this option carefully before spending this money on your dream vacation, and use it to improve your equity on your house instead. 

 

In conclusion, there is no one-fits-all solution when it comes to refinancing. The best thing you can do before taking this decision one way or another is to meet with a financial advisor who will be able to help you figure out what is the best course of action in your particular circumstances.

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