Uncategorized

If a kitchen renovation is on your radar screen, and you plan to stay in your home long-term, you can figure on spending $20,000 or more ” especially if you plan to rip out counters and re-configure your space.

But if youre thinking of upgrades that increase your homes resale value, as well as your own enjoyment, theres a lot you can do at minimal cost to bring your kitchen up to date.

Designers advise putting your money into six specific areas to get the most bang for your update buck:

1. Appliances ” Replace basic white or black appliances with stainless steel, which will not only update the look of your kitchen but will likely be more energy efficient.
2. Cabinets ” Its amazing what a coat of white paint will do to make your kitchen pop. But if tired, old cabinets are beyond painting, re-facing them will save you big bucks over replacing them.
3. Hardware ” Replacing standard cabinet hardware with fresh, bold designs is the easiest (read, cheapest) way to upgrade the look of any kitchen. Choose hardware thats trendy, like brass, which is making a comeback, or contemporary styles that make a statement.
4. Countertops ” High end stone and ornate beveling is in vogue and expensive, but granite is becoming more affordable. Shop around for a good deal and this upgrade may cost less than you think.
5. Backsplash ” A snazzy backsplash is a focal point in the kitchen, and the right one can draw the eye away from kitchen flaws that might otherwise be glaring. Choose subway tile, which is a classic and sought-after option, or add a splash of color with a variety of reasonable materials available at most home stores.
6. Lighting ” An instant style makeover can be as simple as replacing that old overhead fixture with recessed lighting, under-counter lighting, and/or new accent lighting over a breakfast bar or kitchen table.

Published with permission from RISMedia.

Losing a home to foreclosure can be devastating, both emotionally and financially. Foreclosure has some long-term consequences that you may not expect but that could affect your life for years.

Damaged Credit
A foreclosure can cause your credit score to drop by over 200 points. It can take years of faithfully paying credit cards, auto loans and other bills on time to restore your credit to where it used to be.

In the meantime, having your credit score fall off a cliff can make it difficult or impossible to qualify for a new loan or credit card. If you do manage to get approved, youll most likely have high interest rates that can slow your financial recovery.

Housing Troubles
If you want to buy another house, youll have to wait several years before you can qualify for a mortgage. You might be able to get a new mortgage sooner if you wound up in foreclosure because of extenuating circumstances, such as a job loss, illness, injury, or death in the family, or if you apply for a loan through the Federal Housing Administration.

Until you can buy another house, youll have to rent a home or live with family or friends. If you search for a new apartment or house to rent, the landlord will most likely check your credit. A foreclosure could make the landlord decide not to rent to you.

Employment Complications
If you apply for a new job, the company may check your credit. Depending on the type of position, your foreclosure may or may not be a problem. If youre seeking a job handling a companys or clients money, a business may be unwilling to hire you if it seems that youre unable to manage your own money.

Unexpected Debts
If a lender forecloses on your home and the house is sold for less than the amount you owe, the difference is known as a deficiency. Depending on the law in your state, the lender may obtain a deficiency judgment against you and collect the money by levying your bank account or by garnishing your earnings from your job.

You might also have to pay taxes. The Internal Revenue Service considers a loan thats canceled as income, which means its subject to taxes. If youre going through foreclosure or fear that youre heading in that direction, talk to a tax professional about your potential tax burden.

Understand the Possible Implications of Foreclosure
Losing your house to foreclosure could affect many important aspects of your life long after the event. If youre facing the prospect of foreclosure, talk to your lender and a housing counselor about possible solutions to avoid it.

This article is intended for informational purposes only and should not be construed as professional or legal advice.

Published with permission from RISMedia.

Some mortgage lenders allow homebuyers to put down less than 20 percent of a houses purchase price, but those loans are riskier from a lenders perspective. A lender generally requires a buyer who puts down less than 20 percent to purchase private mortgage insurance (PMI) to protect the lender in case the borrower defaults or goes into foreclosure. PMI can cost hundreds of dollars per month, on top of regular mortgage payments and property taxes.

How to Get Around Paying for PMI
One option to avoid PMI is to use a piggyback mortgage. In that scenario, you could take out a first mortgage for the majority of the houses purchase price, plus a second mortgage, at the same time. Usually the first mortgage is for 80 percent of the purchase price, the second mortgage is for 10 percent, and the buyer makes a 10 percent down payment. The second mortgage and down payment together make up 20 percent of the purchase price, thus allowing the buyer to avoid purchasing PMI. The second loan typically has a higher interest rate than the first. The total payments for a first and second mortgage are often less than the cost of monthly payments for one large mortgage plus PMI.

Some companies offer lender-paid mortgage insurance. In that case, the cost of PMI is rolled into the loans interest rate. The higher interest rate applies for the life of the loan, which means you could wind up paying significantly more in interest than you would with a large down payment or two mortgages.

How Long Is PMI Required?
A borrower can ask a lender to eliminate PMI when the owner has reached 20 percent equity. Lenders arent allowed to require PMI after a homeowner has a loan-to-value ratio of 78 percent or less. That target can be reached by a reduction in principal on the mortgage(s) and/or an increase in the houses value.

If your house appreciated in value quickly, you might be able to reach a low enough loan-to-value ratio to eliminate PMI within a few years. If your house gained value slowly, it could take a long time to eliminate PMI.

Consider All Your Options
If youve found your dream house but cant come up with a 20 percent down payment, you might be able to avoid PMI by taking out a second loan if your lender doesnt offer lender-paid mortgage insurance. Compare mortgage terms from several lenders to find out how much youd pay in principal and interest. Then compare that figure to what youd pay for PMI. Also, talk to your real estate agent about trends in the local housing market to get an idea of how quickly or slowly your new home would be likely to increase in value to figure out approximately how long it would take to eliminate PMI.

This article is intended for informational purposes only and should not be construed as professional or legal advice.

Published with permission from RISMedia.

So you’ve got new kitchen cabinets. Congratulations! But now what? For those wondering how to finish their brand-spanking-new cabinets, we run down the pros and cons of painting vs. staining”the two most popular finishing avenues. The kitchen is one of the most important factors in your homes value, so consider how the following information impacts your real estate investment.

Pros for paint
– It’s flawless. Regardless of the color you choose, painting your cabinets covers up any quirks or blemishes in the natural wood, which can often be magnified by staining.

– Your color choices are endless. When it comes to picking a paint, the world is your multi-colored oyster. Get crazy and really customize the look and feel of your cabinets.

– Paint sticks to lower quality materials. If your cabinets are not made of wood (think particle board), paint is your BFF. It sticks to these materials just as well as higher grade wood options, and no one but you will know the difference.

Cons for paint
– It looks more uniform. Remember those natural quirks we mentioned? Well you may not want to cover them up. If you’re looking for a more natural, country vibe that highlights those stunning features like grain and knots, opt for a stain over paint.

– It’s pricey. While not too expensive in the grand scheme, paint is more expensive than a stain, so if budget is a concern, take heed.

– Harder to touch up. Even if you can’t find an exact match for your cabinet color, when you’re working with stain, odds are you’ll have better luck blending touch-ups in stain than with picky paint.

Source: Houzz

Published with permission from RISMedia.

In today’s day and age, choosing the right lighting for your space can be an overwhelming proposition. But it doesn’t have to be. Here are three out-of-the-box ideas you can”and should”put into play.

Light unexpected spaces. There’s no need to settle for simple overhead lighting. Up ambiance and interest in a room by lighting a strip along the floor or beneath a kitchen counter. Place rope or strip lights along the edge of your staircase for easy navigation in the dark, or add indirect lighting under or above cabinets in the kitchen.

Light in layers. When planning lighting design for a room, think lighting in three main layers: overhead lighting, task lighting, and accent lighting. Think a chandelier or ceiling fixture to cover overhead, table lamps for task lighting, and a few specialty spots for accent lighting”frame lighting around the bed frame in your bedroom, for example, or light a few of your favorite pieces of art to draw attention to them.

Dont forget to dim. Considering that dimmer switches run a scant $25, there’s no reason not to have them in your home. Control your space’s mood and ambience for a small cost, and enjoy a slightly smaller utility bill ” the American Lighting Association sites that a dimmer switch saves an average of $30 a year.

Interested in real estate and housing tips? Feel free to contact me directly.

Published with permission from RISMedia.