The temptation to refinance and increase your monthly budget is enticing. There are several benefits to refinancing your home loan – getting a lower interest rate, shorten the time left on your mortgage, or escaping the unpredictability of an adjustable-rate mortgage (ARM). 

 

 

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Refinancing requires a fee of up to 6% of the principal on the loan and can require the appraisal, titling, and application fees just like an original loan. With this in mind, when is it appropriate to refinance? When do the pros outweigh this con of extra effort? 

 

 

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The best reason to refinance a mortgage is to save money on interest. While the recent announcement by the Federal Reserve has led many to investigate their options, it has little to do with the current low mortgage rates. The market has simply settled with rates averaging around 4.5%. This is great news for someone sitting with a 6% or higher mortgage rate!

 

Experts suggest that a reduction of 1-2% makes refinancing worth the effort. A decrease in your interest rate means lower payments and speeding up your equity-building process. 

 

 

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Another reason to consider refinancing, if you can qualify for these lower rates, is to procure a shorter-term loan. If your mortgage payments are manageable as they currently stand, you could shorten the term on your loan with a relatively similar payment. Paying a few dollars more a month could be worth finishing off your loan years earlier.

 

Most homeowners with an ARM are interested in getting out of the unpredictable rate adjustments inherent to such loans. While a downturn in rates can be a boon, the subsequent increase in mortgage rates can be disappointing and stress your budget. 

 

 

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Getting out of an ARM when rates are low is ideal. Rates are currently lower than they were several years ago and are unlikely to decrease much more. Switching to a fixed-rate at these low numbers can provide stability to your budget. 

If you are looking to refinance your mortgage, now is the time. Rates are relatively low and could go up in the coming year. Homeowners who want lower payments, faster payoff, or a fixed-rate should contact lenders and see what rate they can qualify for.

A US Federal Housing Administration (FHA) Loan is a great way for first-time home buyers to those with low credit scores to secure their new home. For many starting this exciting new chapter in their life, they don’t have the liquidity to afford a mortgage on their own. The FHA loan allows Southern California homebuyers the opportunity to get their new house without much financial burden up front. However, there are a few drawbacks to an FHA loan that might make you reconsider. Let’s examine the pros and cons of an FHA loan. 

 

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Pros of an FHA Loan

The minimum credit score that someone applying for an FHA loan can have is 500. At such a low number, that means many people are qualified for an FHA loan. This is excellent news for anyone who is dreaming of buying a house in Southern California. 

 

With an FHA loan, the initial down payment is incredibly low. You only need to put down 3.5%. Also, new homebuyers can seek more relief from the sellers when it comes to closing costs. In most standard loans, sellers can only cover closing costs up to 3% of the loan amount. With an FHA loan, the home seller can contribute up to double that amount. 

 

Lastly, FHA loans are assumable. Therefore, if you go to sell your Southern California house in the future, the next buyer can be locked in at your interest rate. Getting an FHA loan is an additional investment in your future because it will increase the value of your house as market prices rise. 

 

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Cons of an FHA Loan  

FHA loans may seem too good to be true. In some cases, they might just be. If you are looking to buy a fixer-upper, the potential house might not be qualified for an FHA loan. The home must be in excellent condition and look like it will be that way throughout the remainder of the mortgage.

 

The biggest con with FHA loans is insurance. As per the FHA website, “FHA requires both upfront and annual mortgage insurance for all borrowers, regardless of the amount of down payment.” You need to comply with these insurance laws until you have paid at least 80% of the mortgage down. 

 

Lastly, FHA loans have a cap. If you are buying in the Southern California areas, here are the max amounts you can be approved for per style of home:

 

• Single – $726,525
• Duplex  – $930,300
• Tri-plex – $1,124,475
• Four-plex – $1,397,400

 

So, if you are applying for an FHA loan and actively looking for homes in Long Beach, California, keep these numbers in mind.

 

The housing market isn’t much different than the stock market. You have to pick your spots. Sometimes your chips fall on the right number, other times the house wins. In February, the housing market saw a 12% drop in house sales across southern California. This decrease has left a rippled effect that will flow through the summer months. While the following months are going to heat up temperature-wise, the housing market is going to cool down. That’s why right now is the time to buy if you are looking to buy a house in southern California.

Summer 2019 is a Buyer’s Market in Southern California

Currently, home sales are down. Many of the houses that are up for sale have been for a while. Therefore, some of the owners are getting a bit antsy to cut bait. One’s loss is another’s victory, making right now a prime time for buyers.

 

Typically, the summer months are a popular time for people to start shopping for houses anyway. However, many of the sellers have been sitting with the same inventory as last summer. So, you can expect two things as the season starts–prices dropping and sellers caving.

As a buyer, you are holding a good portion of the power. So, it’s wise to get yourself pre-approved for a loan now. That way, you know how much you have to play with when you start your search. Knowing how much you can afford will go a long way if you find yourself in a bargaining war. It’s like having an ace up your sleeve that the seller has no idea you are carrying.

Why You Should Buy a House in Southern California Right Now

With all these buyers looking to sell their southern California house, you might not feel like you’re in no rush. However, you should act now to take advantage of the current rates. For one, while the number of properties sold in southern California is down, the median price is up 1.2% from last year. So, while there is room to negotiate, sellers are still making a good profit in many booming neighborhoods.

In addition, rumors are circling that mortgage rates will increase from 4.5% to 5% by the end of the year. So, if you wait too long to buy your house in southern California, you might see a price hike and a mortgage percentage jump. All of these analyses make right now the ideal window to buy a home in southern California.

 

So many brunches, so little time. There are 52 Sundays in a year, and yet you wouldn’t be able to visit each brunch spot in the Long Beach area in one year! That is what makes living in Southern California so much fun. With something always going on, it may be challenging to pick what to do for brunch. That’s a good problem to have! Luckily for you, we can help make that decision easier. Here are some of the best spots for brunch in Long Beach, California, according to Foursquare.

 

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Starling Diner

The Starling Diner is a casual eatery with some of the best grub in SoCal. This Belmont Heights staple has great beverages, but they are widely known for their food. Their Breakfast Polenta is ideal for vegetarians while carnivores will salivate over their Roast Beef Hash. After being featured on Diners, Drive-Ins & Dives, the Starling Diner has become packed. So, expect long wait times on the weekend, but as Foursquare reviewers can attest, it’s worth the wait.

 

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The Coffee Cup Cafe

Unassuming and affordable, The Coffee Cup Cafe is darkhorse in top places to have brunch in Long Beach. This 4th Street hotspot has a classic diner vibe with a modern twist to their menu. What sets The Coffee Cup Cafe apart from the rest are their Louisiana Hot Sausage & Eggs and Apple Honey Sausage & Eggs. Vegetarians can rejoice too. There is a mouth-watering Sunrise Fiesta Bowl or Lyle’s Mashed Potato Omelette!

 

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Jongewaard’s Bake N Broil

This California Heights bakery is a great place to have brunch for those with a sweet tooth! From Fresh Peach Cobbler to Fresh Ollalieberry Shortcake to whatever they whip up that day, chat with friends over a cup of joe. Jongewaard’s Bake N Broil is more than just sweets. They also have a full menu of typical brunch fare. Don’t let that downplay the experience as Jongewaard’s has an almost flawless record on Foursquare.

 

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Potholder Cafe

Potholder Cafe calls themselves “The King of Breakfast.” This Belmont Heights staple has a better selection of bevvies for those who brunch to get buzzed. They have all your brunch staples but if you’re looking to live a little, order the Hibiscus. It’s a bubbly mixture of champagne and cran. If you’re eating, it’s all about the Scrambles and Omelettes. Meat-eaters, Potholder Cafe is known for its ABC Omelette of avocado, beans, and cheese. Vegetarians, keep an eye out for Chilaquiles made with soy chorizo, eggs, jalapeños, and cheddar cheese. Vegans are welcome too. Ask about vegan specials inside.

 

 

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Schooner or Later

This list had to end sooner and later, so might as well end with the Schooner or Later. The Marina Drive hotspot has everything you need from beer to cocktails to half bottles of wine. Their food has been featured on The Food Network, most notably their Belgian Waffle. Omelette lovers must try out their Crab & Cheddar Omelette with Hollandaise sauce and avocado. They have plenty of omelettes for vegetarians, or you can build your own. For an authentic SoCal experience, opt to add the Ortega chilies!Best Spots to Have Brunch

Buying a home is a significant investment for a potential house buyer. They aren’t just buying a lot on the street. They’re purchasing a structure that’s meant to shield their family from the outside elements. That takes a lot of upkeep. Some buyers don’t want to inherit a previous owner’s problems. Here is a list of things a buyer should ask a seller to fix before buying a home.

Furnace

A new mortgage should come with a working furnace. Furnaces last a long time and are a significant expense. When you purchase a home, you want the peace of mind that the furnace will last ten-years minimum. However, if the furnace is clearly old, it is not unreasonable for a seller to ask a buyer to replace before closing.

Patch Holes or Paint

While a furnace is a big expense, patching holes isn’t. Between pictures hanging on them or swinging door damaging them, walls take a beating. If a buyer notices that any room is a little more beaten up, they can ask for the seller to patch up and paint them.

 

Some potential buyers are a bit more particular about their paint colors. Therefore, the buyer can opt for the seller to do patch-up jobs around the house. Then, the buyer will paint themselves when they move in. It’s a happy compromise!

Roof

When you are serious about purchasing a home, get an inspection. Be sure to ask the inspector about the roof. Like the furnace, roofs are essential in protecting your loved ones.

 

Roofs can last upwards of thirty years, and you don’t want to be on the latter end of the spectrum. Like a furnace, you want to strive to get another five to ten years out of the one currently on the house.

 

If the roof fails the inspection, the buyer should ask the seller if they will replace it. In the event the seller is unwilling to budge, the buyer could offer to split the cost. The last case scenario is to call bluff and feign withdrawing interest.

Floors

It is not uncommon for buyers to ask sellers for new flooring. When someone moves in, they’re bringing all their belongings into the house. The last thing they want to do is ship the haul back out again so they can rip up the floors.

 

For sellers who want to buy a house that needs floor repairs, try negotiating deals with the seller. If they won’t put in new floors, perhaps they’ll do carpeting? Offer 50/50. Worst case scenario, see if they’ll sand the old wood floors so you can get them polished yourself. Any little victory can help your transition much smoother.

What Should You Ask a Seller to Fix Before Buying a Home?

The time between April and August is well known as the top home-buying season of the whole year. Buyers are eager to find their dream home and make their move long before fall and the holidays set in. If you have been considering selling your home, now is the time to make sure it’s in tip top shape. Here are our tips on getting your home ready to sell!

Take the First Step

If you haven’t already gotten started with the beginning steps of selling your home, make this your top priority. Reach out to one of our agents and learn about the process and develop a timeline and plan of action. Get the ball rolling!

Declutter and DIY

Spring is the perfect time to freshen up your home before it hits the market. One of the best things you can do is declutter. Be ruthless – your home will be much more attractive to buyers with less stuff, and you’ll benefit from having less to move when the time comes.

 

DIY projects are also great to knock out in early spring. Any minor fixes you can do will improve your chances of leaving a good impression at open houses and viewings (but leave the big stuff up to the professionals.)

Photo Prep

Start imaging how you want your home to look like for the ever-important photos. Brainstorm staging, lighting, and anything else you’d like to present with your home’s snapshot. Run your ideas over with your agent and do any prep work necessary.

Don’t Forget the Gardens

With the onset of spring, your gardens and yard may start to explode with springtime growth. Don’t let them get out of hand! Keep your gardens, patio, and yard trim to give your home the best possible curb appeal. The beauty of spring often attracts buyers to homes, use it to your advantage!

Bring on Buying Season

April through August is the ultimate time to list your house. The first step to reaching your goal is to be clear on what you can do to make the most of it. Now is the perfect time to get things in order before the best selling season of the year!

 

In the business world, escrow is essential. A third-party is necessary to ensure that both parties on either end of the transaction hold up their end of the bargain. In an ever-evolving world, the way we handle business transactions has seen many changes. While blockchain has garnered media attention as a burgeoning form of tender, it’s not the future of escrow. Traditional methods are proven effective and will stand the test of time against cryptocurrency. Here’s why.

Cryptocurrency is Not Proven

Right now, blockchain is like the wild west. Information is out in the open, yet out in the ether. Being such a new concept, we haven’t seen what the lasting effects of cryptocurrency are.

 

What seems like such a secure concept could be the most compromising. That’s why cryptocurrency will not be the norm in the foreseeable future. No one is sure of the long-term ramifications.

Blockchain is Not as Transparent

Many cryptocurrency companies are tinkering with the concept of an escrow. However, it’s hard for the average person to gauge a value they would understand in terms of their actual assets. You’d need an expert in cryptocurrency and math to make a calculated decision.

 

Whereas, traditional practices is a universal language at this point. You can speak to an actual human and get answers to your concerns. Plus, humans see traditional money as tangible. It’s not data floating in a server somewhere in the blockchain.

Cryptocurrency Doesn’t Fit with Other Processes

Escrow isn’t a business that thrives on its own. It relies on insurance companies, mortgage companies, and other creditors. These are all cogs in the machines that make the business world go round.

 

If someone pays a real estate agent for a home with bitcoin, that doesn’t mean the buyer can insure the house or set up an escrow account with cryptocurrency. Using an entirely different form of tender than you’d use to settle all the other essentials would complicate the process for the buyer. Who needs that headache? This why cryptocurrency isn’t feasible as the future of escrow.  

 

Buying a house is a big deal. It’s not a decision you should make lightly. A home is a commitment of at least 30 years. However, for many, it’s a lifetime. Now, don’t let that scare you. We learn the most when we step outside of comfort zone. Trust us, buying a house is definitely stepping outside of that comfort zone. So, take a breath and look over these 7 things before you’re ready to put in an offer.

Research the Area

When you buy a home, you’re also buying into a neighborhood. Therefore, you should know a thing or two about where you are moving. Luckily, Google has made that pretty easy.

 

Look up the address. Go down the rabbit hole. Check out the crime rate in the area. Read police blotters. See how often your potential street makes it into the news. You might find some red flags that this isn’t the house for you. However, a clean record can ease a lot of concerns!

How is Your Work Commute?

You have to pay the mortgage somehow. So, how is the work commute from the potential new home? You may fall out of love with your dream house if it takes hours getting to and from the job.

 

Before you put in an offer, take a ride to the office. Is it too long for you to bear? Maybe the house is close to a train station or bus stop? Figuring out how to get to and from your workplace most efficiently and cost-effectively can go a long way in swaying your decision to buy a home.

Figure Out the Utilities

Sure, you can afford the mortgage. However, can you cover the cost of keeping the lights on, the internet going, and Netflix streaming?

 

Utilities are different prices throughout the United States. Therefore, what you paid in your old neighborhood might not be what you’re forking out in your new one. Before putting in an offer, make sure you can afford to live in the neighborhood you are looking to move into.  

Assess What Needs Fixing

Ever buy a used car and realize you bought someone else’s problems? Don’t fall into that trap when you are buying a house. This is an issue that will last far longer than the lifespan of a vehicle.

 

Have the house inspected. Let contractors give you estimates on what needs updating. Prioritize what is essential and what is cosmetic. From there, figure out how much you need to invest in fixing the place up. If you need a lot more work done than you initially anticipated, this might not be the right house for you.

What’s It Like at All Times?

When we start the home buying process, it tends to be during day time hours. This is when the neighborhood is at it’s best behavior. Drive by the house numerous times at various moments of the day.

 

See what the activity is like after hours. Scope out the scenery early morning. Are there noisy neighbors that will keep you up all night as they party? Perhaps, there are other neighbors that will be up at the crack of dawn mowing their lawn? Remember, you’re not just buying a house, you’re investing in a neighborhood. Figure out the lay of the land before you put in the offer.

Are There Certain Insurance or Taxes?

Make sure that you are aware of the tax bracket of the neighborhood. These are fees that many don’t anticipate and can be a costly oversight for new homebuyers.

 

Also, be aware of the zoning of the house. For instance, some neighborhoods require additional coverage such as flood insurance. You should know these requirements beforehand and figure them into your budget before making an offer.

Can You Imagine the Rest of Your Life Here?

This last tip may be the most important. The purpose of a house is to be the backdrop for a lifetime of happy memories. Is this the place?

 

Before making an offer, walk in the house. Take a look around. Close your eyes. Can you imagine Christmas morning or Sunday dinner in this house? If so, then it’s set. You found your forever home!

 

A new year typically brings resolutions and promises to get better at some aspect of life. For homeowners, this is the perfect time to get the house in order. Use the start of a new calendar to organize, address, and review in preparation for the year ahead.

 

Review Maintenance Needs and Plan Ahead

Homes require regular, routine maintenance in addition to some less frequent updates. Take stock in both these needs and plan for them throughout the year. Changing filters, testing and replacing smoke alarm batteries, and dryer vent cleaning should all make the list.

 

Plan for larger needs as well like roof inspections or HVAC maintenance. Put everything on a calendar to hold yourself accountable and avoid it “slipping your mind”.

 

Update Emergency Plans and Contact Information

Emergency plans can change based on a variety of factors like the age of those residing in the home and any renovations. It is important to review the plan annually, ensure everyone is aware of the plan, and make any appropriate updates.

 

Emergency contact information should also be reviewed each year. A list is useless if the names, numbers, and addresses are inaccurate. Be sure to update any new family phone numbers along with changes to physicians, dentists, and veterinarians.

 

Pre-Spring Cleanup

The new year represents a fresh start and is a perfect time for a little pre-spring cleaning. While many months of winter may remain, is a great opportunity to evaluate the things around your home that may be excessive.

 

Evaluate closets and decide what clothing can be trashed or donated. Inspect storage spaces for useless or junk items that can be trashed, donated, or labeled for a spring yard sale. Take some time at the new year to do a little work and make the spring cleaning less cumbersome.

 

Conclusion

 

As part of your planning for the upcoming year, take a moment to evaluate your home and its needs. Approach the year with an organized perspective to make home maintenance far less daunting.

 

Do you own a house and are on the verge of foreclosure? Many people will do almost anything to maintain the roof over their heads. As a last-ditch effort, thousands of homeowners are turning to equity stripping to make their homes less attractive to creditors. However, don’t let desperate times call for desperate measures. While on paper this method seems fool-proof, it’s leaving people with even less than what they started with. Let’s take a look at what is “stripping the equity,” why it’s dangerous, and how to avoid it.

What is Equity Stripping?

Equity stripping is considered a form of asset protection. When someone is in debt (such as facing a foreclosure) and are having trouble making payments, creditors start to look at the assets that the debtor owns for collateral. For many, the most valuable asset we own is our home.

 

If you have a mortgage, you have been paying on your house. That means you have some equity in your asset. This is valuable to those who you are in debt to.

 

In order to shell out less money to creditors, you need to prove you have less assets than you actually do. The only way to do that is to hurt your assets. That’s why many are turning to equity stripping.

Types of Equity Stripping

There are a number of ways to go about lowering your equity on your house. Here are some of the most common:

Home Equity Line of Credit

The best way to keep creditors away from your equity is to tie your equity up elsewhere. To do this, many are putting their house up as collateral while they get a home equity line of credit (HELOC). This loan allows you to draw a maximum amount of the equity you already have in your house. The beauty? You don’t need to draw from the money…ever. There’s no penalty for not taking from the loan. Meanwhile, creditors looking at your assets will be turned off by seeing a HELOC.

Second Mortgage

While more effective, this is even riskier. Your equity is pretty much null and void because you will owe even more on the house than it’s worth. This might be a quick fix in fighting off a creditor, but it sets up a lifetime of debt.

Quit-Claim Deed

This used to be a lot more common before divorce became a regular occurence. Here, people sign over their property to a family member or spouse who has less debt. While it seems like a no-brainer, you are handing over your property rights to another person. If the person you signed the house over to doesn’t hold up their end of the bargain, you may find yourself up the creek without a paddle.

What to Do Instead of Equity Stripping?

Equity stripping may be effective, but it’s also dangerous. You can end up with worse credit, no equity, or even homeless. While these are worst-case scenarios, they should be taken into consideration. Before turning to equity stripping as your answer, try these tips first:

 

• Create a Budget and See Where You Can Cut Costs
• Contact the Lender About a New Payment Plan
• AirBnB or Rent Out an In-Law
• Refinance Your Mortgage with a Lower Interest Rate
• Sell Your House and Downsize or Rent

 

While none of these seem like easy answers, they are far less risky than opening up more lines of credit or signing over your house. Equity stripping might seem like answer, but it also can end up becoming a foreclosure scam. Be sure you make an educated decision before doing something as important as equity stripping.