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Those considering purchasing a new home may want to consider becoming a condo owner. Popular with every homeowner”from first-time buyers to retirees”condos offer many advantages over a traditional stand-alone property. Below are the top three.

Affordability: If you’re looking for a newly built home, a condo is likely to be less expensive than a stand-alone property. Why? Condos are often smaller in size than homes containing comparable numbers of bedrooms and baths. In addition, condos often share many building elements such as walls and roofing, so the cost of construction is often lower, resulting in lower pricing.

Low Maintenance: Condo life is a low maintenance life, as living in a condo means you’re likely paying Property Owners Association dues (POA), which cover many maintenance items such as landscaping, pest services, roofing, painting, and driveway repairs. Having so many services covered is appealing to busy professionals, parents of young children and retirees who may not feel up to mowing and raking. POA fees are typically relatively inexpensive, and for those too busy or tired to take on tasks alone, they are well worth the cost.

Amenities: Condos are all about top-notch amenities. From swimming pools and restaurants to golf courses and clubhouses with workout centers, many of today’s condo developments are filled with fantastic features. Expenses for building and maintaining these amenities are typically shared among condo owners, so you can enjoy these lux amenities at a very minimal cost.

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Shopping for a mortgage can be overwhelming. Even if youve owned a few homes and have had a few home loans, chances are there are some mortgage options you dont know about.

Here are four to ask a mortgage expert about:

1. A 20 percent down payment isnt a must. The long-held view that at least a 20 percent down payment is needed to buy a home is outdated.

A loan approved by the Federal Housing Administration, or FHA, can have a minimum down payment of 3.5 percent. For a $300,000 home, instead of having to come up with $60,000 (20 percent) down, a 3.5 percent down payment requires $10,500 down.

2. Banks arent the only home lenders. Traditional lenders like banks and credit unions are just some of the places to get a home loan.

Savings and loan associations are one option, using the savings deposits of private investors to make mortgage loans. Theyre usually locally-owned and managed, and are chartered by the federal or state government.

Mutual savings banks are another option. Theyre like savings and loans and were created to help low-income consumers. Unlike commercial banks, they can borrow from the Federal Home Loan Bank System to make investments such as mortgages.

3. Youll likely get more money than you need. After determining your ability to repay a home loan and the cost of the home, the lender will tell you how much of a loan you qualify for. Chances are it will be a larger loan than you can afford.

New federal laws in 2014 are meant to hold lenders more responsible for the loans they underwrite, but the guidelines still allow larger loans for most people.

That doesnt mean you have to necessarily borrow that much money. But it could help pay your closing costs, or be used to buy a bigger home. But if youre getting a bigger loan only because you qualify for it and can buy a better or bigger home, you could be in trouble soon if you cant afford the payments. Only you know your day-to-day finances”not your lender”so sticking to a loan you can afford is wise.

4. A home loan can help cover repairs. If youre getting an FHA loan, its 203(k) program allows up to $35,000 from the loan to be used for home repairs and improvements.

Chances are the home youre buying will need (or youll just want to change) new carpet or paint, and this add-on loan product can pay for the improvements. The total loan amount is based on the projected home value after the fixes are made.

Interested in more real estate tips? Contact me today!

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Energy loss attributed to windows accounts for nearly 25 percent of the annual heating and cooling costs for the average American home, according to the Department of Energy. Do double-paned windows provide enough savings to justify their cost?

Experts say that even a clear glass, double-paned vinyl or wood-framed window can reduce energy usage by up to 24 percent in cold climates during the winter, and by up to 18 percent in hot climates during the summer, when compared to older, single-pane models. The savings may be even greater if you choose top-of-the-line models and/or triple-paned windows.

Double-paned windows are a boon to the environment as well, because when you burn less fossil fuel, you create fewer greenhouse gas emissions.

As an added bonus, double-paned windows significantly reduce traffic sounds and other outdoor noise, making them a smart buy in busy urban areas.

Apart from the cost, there’s no downside to installing double-paned windows, although experts say that quality matters. From failed seals to improperly spaced glass, poorly manufactured windows can negate energy savings and lead to other problems, such as condensation developing between the panes”so it’s wise to buy from a reputable dealer.

Also, replacing individual windows rather than upgrading entire homes or floors will not likely yield your intended energy savings. Old windows will still leak air even if you install one double-paned one, making it imperative to replace all the windows in your home at the same time.

Costs can vary considerably depending upon the number of windows to be replaced and the overall quality of materials used. On average, you may expect to pay between $300 and $500 per window, plus an installment fee. But competition is keen and sales do occur, so a thrifty homeowner should get several estimates before choosing a contractor.

Interested in more real estate information? Feel free to contact me directly.

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Owing more money on your mortgage loan than your home is worth”commonly referred to as being underwater on a home mortgage”can seem hopeless.

There were 6.7 million underwater homes in the U.S. at the end of the first quarter of 2016, representing 12 percent of all properties with a mortgage, according to RealtyTrac. The numbers are dropping since a peak of 12.8 million homes in 2012, when 28 percent of all properties with a mortgage were underwater.

For people still underwater, those numbers dont offer much solace. However, there are some options for underwater homeowners, including:

Short sale: If you have to sell your home, a short sale may get you the most money. Your lender has to agree to let you sell it for less than you owe, which may lead to the home being sold quicker than it would otherwise.

Your lender must agree to the lower price, and it will take the loss, and your credit score will fall. Lenders can also reject short sale offers on your home, causing the deal to fall through.

Refi: Refinancing your home loan wont increase the homes value and may still leave you underwater, but youll have a lower interest rate and a lower monthly mortgage payment.

It can be almost impossible to refinance with negative equity. The federal governments Home Affordable Refinance Program, or HARP, helps by giving lenders incentives to help underwater homeowners. Loans can be refinanced at 105 percent to 125 percent of a homes value.

To be eligible for HARP, the loan must be owned or guaranteed by Fannie Mae or Freddie Mac, and the borrower must be current on mortgage payments, having not missed a payment during the past 12 months. If you dont have a good credit score or high enough income, you could be denied for HARP.

Another option is the federal Home Affordable Modification Program, or HAMP. A financial hardship that puts the mortgage in default must be shown. This isnt a refinancing option, but a way to change the contract terms to lower your payments for up to 60 months.

Walk away: If you dont think your homes value will ever come back, you can walk away from your home by no longer making monthly payments and defaulting on the loan”called a strategic default.

Some consider this unethical, and the foreclosure that will eventually occur will hurt your credit score and stay on your credit report for seven years.

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If youre buying a home, you’ll more than likely be obtaining a mortgage, which you may not know much about. In fact, unless youve been involved in a home sale before, there are many things you will be learning about for the first time.

Here is a handy list of some of the key terms that every person involved in a real estate transaction should understand.

Appraisal:The written analysis of the estimated value of a property, as prepared by a qualified appraiser, which often determines if you will qualify for the loan.

Closing:One of the last steps of any sale. This is the meeting where the lender, buyer and seller complete the sale and mortgage process. Once the home closes, the home officially belongs to the new buyer.

Closing costs:This term refers to the money paid at closing to the lender and consists of a loan origination fee, points, appraisal fee, title search and insurance, survey, taxes, deed recording fee, credit report charge and other costs assessed at settlement. Closing costs usually average between 2 – 6 percent of the total mortgage amount.

Credit report:Simply a report of your credit history that a lender will use to determine if you are a good risk for a loan.

Interest-only mortgage: A loan whereby you only pay the interest portion of the mortgage payment each month.

Interest rate:The annual interest on a loan. The lower your interest rate, the lower your monthly payment will be.

Lock-in:The lenders guarantee that you will be granted a certain interest rate for a specific time period, such as 30 days before closing.

Origination fee:The fee charged by a lender for processing a loan.

Points:The amount that can be paid to a lender to lower the interest rate on your loan at closing. Each point is equal to 1 percent of the loan amount.

Private mortgage insurance (PMI):For those buyers who put less than 20 percent down on a home, lenders will require you to take out PMI, which is then added to your monthly mortgage payment. This protects the lender in the event that you default on the loan.

Title:The home document that proves ownership of the property.

Published with permission from RISMedia.