12 Sep 2023
By Kevin Gahagan

Working From Home: 5 Best Tips To Make It Work

Mortgage

Working From Home 5 Best Tips To Make It WorkCarving out space for a home office isn’t always easy, but if you have the option to work from home even part of the time, it’s essential to have a space that works for you.

Here are 5 great ways to meet those needs:

Adapt A Closet

A guest room closet with bi-fold doors can become a perfect workspace with the addition of a shelf at the proper height to hold a computer or calculator and proper task lighting. Hang a bulletin board or add open shelving on the back wall. Multiply the functionality with a small cabinet or a portable file rack. The advantage of going to work in a closet is that you can close it off completely without having to do a daily cleanup. 

Grab A Corner From Living Room or Bedroom

Tuck a table desk into a corner of the living room or bedroom, assuming that you can work during the day when others aren’t sleeping or actively “living” in the space. Small table desks serve a variety of purposes, from serving snacks to displaying artwork, and are perfectly adaptable as work space, with a minimum of effort. All you really need is a good lamp and a nearby electrical plug in order to create an office. 

Claim Space In A Wide Hallway

With a space as narrow as about 30 inches and minimal depth, it’s possible to set up a small tabletop and chair to serve your needs for making phone calls, organizing schedules or planning appointments. It may not be ideal, but if space is at a premium it can be functional for short bursts of work at home.

Look For Multi-Purpose Furniture

A home office can exist in a den or dining room that has either a credenza or a tall cabinet with doors. Think about your needs, and seek out furniture that will fill the bill. Traditional period “secretaries” with closed door storage and a fold-down desktop are perfect, but even ramshackle armoires can be repurposed as office cabinets. 

Look For Unused Space

If you have a mostly empty storage room, even if it’s located in the garage, clean it out and clean it up. Add proper lighting, and even a portable heater or air conditioner. Brighten the space with fresh paint and an area rug, find second-hand furniture at garage sales or estate sales, and get creative with accessories. 

Be Aware Of Your Needs

There are two primary requirements for a home workspace, no matter what kind of work you do: storage space for the tools, supplies, files and accessories that you need; and privacy. It’s nice to be able to close the door on your work and “go home,” so the more insulated your home office is from other family activities, the more efficient it will be. Even if space is minimal, it can work for you!

Be sure to contact your trusted mortgage professional to get started with the pre-approval process as soon as you are in the market for a new home.

 

01 Sep 2023
By Kevin Gahagan

Understanding the Mechanics of a HELOC Loan

Mortgage

For many homeowners, a Home Equity Line of Credit (HELOC) can be an attractive financial tool, offering a flexible way to access funds while leveraging their property’s equity. A HELOC works differently from a traditional home loan or mortgage, providing borrowers with a revolving credit line that they can draw from as needed.

What is a HELOC?

A Home Equity Line of Credit is a type of loan that allows homeowners to borrow against the equity they have built in their property. Equity is the difference between the home’s current market value and the outstanding mortgage balance. HELOCs are typically offered by banks, credit unions, and other financial institutions and are often regarded as a “second mortgage.”

How does a HELOC work?

A HELOC operates like a credit card or a checking account with a pre-approved limit. When you apply for a HELOC, the lender assesses your creditworthiness and the amount of equity you have in your home to determine your credit limit. This limit is typically a percentage of the home’s appraised value, minus any existing mortgage.

Once approved, borrowers can access the funds as needed during the “draw period,” which typically lasts around 5 to 10 years. During this time, you can borrow and repay the funds multiple times, just like using a credit card. You only pay interest on the amount you have withdrawn.

Interest Rates and Repayment

HELOCs usually have variable interest rates, which means that the rate can fluctuate with changes in the market index. The interest rates are generally lower than those of credit cards and other unsecured loans, making a HELOC an appealing option for consolidating higher-interest debts or funding significant expenses, such as home renovations or educational costs.

During the draw period, borrowers are usually required to make interest-only payments each month. However, some lenders may allow borrowers to make both principal and interest payments. During this phase, borrowers can no longer withdraw funds and must repay both principal and interest, often leading to higher monthly payments.

Advantages of a HELOC

Flexibility: Borrowers have the freedom to use the funds for various purposes, from home improvements and debt consolidation to emergency expenses and educational costs.

Lower interest rates: Compared to other forms of credit, HELOCs often offer more favorable interest rates, making it a cost-effective financing option for eligible homeowners.

Tax benefits: In some cases, the interest paid on a HELOC may be tax-deductible, but it’s essential to consult a tax advisor to understand the specifics of your situation.

A Home Equity Line of Credit can be an excellent way for homeowners to access funds for various financial needs. By understanding how a HELOC works, its benefits, and potential risks, borrowers can make informed decisions about whether it suits their financial goals and circumstances.

Responsible use, careful planning, and regular review of your financial situation are essential to make the most of this powerful financial tool and avoid potential pitfalls. As always, it’s advisable to seek professional financial advice before making any major financial decisions.

31 Aug 2023
By Kevin Gahagan

Buying Vs. Building a House

Mortgage

Buying Vs. Building a HouseDeciding whether to buy or build a house can be a complex decision that depends on several factors. Here are some pros and cons to consider:

Pros of Buying a House:

Convenience: Buying a house is generally quicker and more convenient than building one. You can move in as soon as you close the deal, without having to wait for construction to be completed.

Location: When you buy a house, you have the opportunity to choose a home in an established neighborhood with existing amenities such as schools, parks, shopping centers, and other essential services. You can choose a location that is convenient for your lifestyle.

Cost: Depending on the location, buying a house may be less expensive than building a new one. You can often find great deals on homes that have been on the market for a while, or in areas where the real estate market is more favorable to buyers.

No Hassle of Design and Construction: When you buy a house, you don’t have to worry about designing the home or supervising construction. You can focus on personalizing the house according to your taste, rather than starting from scratch.

Resale Value: Buying an established home often means it already has a resale value, making it easier to sell in the future.

Cons of Buying a House:

Limited Customization: When you buy an existing house, you may have limited options for customization. You’ll need to accept the home’s layout, features, and design unless you’re willing to invest additional time and money to make renovations.

Unpredictable Market: Real estate markets can be unpredictable, and the value of your home may fluctuate depending on economic conditions. There’s always a risk that the value of your home may decrease in the future.

Maintenance: As a homeowner, you’ll be responsible for maintaining and repairing the home, which can be costly. Older homes may require more maintenance than newer ones, which can add up over time.

Hidden Problems: Even with a thorough home inspection, there may be hidden problems with the house that you only discover after moving in, such as foundation issues, electrical problems, or water damage.

Pros of Building a House

Customization: You can design the house to your exact specifications, ensuring that it meets your unique needs and preferences.

New materials and technology: You can take advantage of the latest building materials and technology, which can make the house more energy-efficient and environmentally friendly.

No hidden problems: Since the house is new, there should be fewer hidden issues or problems to deal with.

Cons of Building a House

Cost: Building a house can be more expensive than buying an existing one, especially if you choose high-end materials or features.

Time-consuming: Building a house can take months or even years to complete, which means you’ll need to be patient and flexible.

Uncertainty: There may be unexpected delays or complications during the construction process, which can be frustrating.

Buying a house can be a smart and practical option for many people, especially those who prioritize convenience, location, and cost savings, buying a house is a big decision that requires careful consideration of both the advantages and disadvantages. It’s important to do your research and weigh your options before deciding.

30 Aug 2023
By Kevin Gahagan

How to Save The Most Money When Buying a House

Mortgage

How to Save The Most Money When Buying a HouseBuying a house is one of the most significant financial decisions in one’s life, and it’s essential to make smart choices to save money during the process. While purchasing a home can be expensive, there are several strategies you can implement to maximize your savings and make the most of your investment.

Here are some valuable tips on how to save as much money as possible when buying a house:

Research and Compare Mortgage Options:

When considering a mortgage, do thorough research to find the best interest rates and terms available. Compare offers from multiple lenders and don’t be afraid to negotiate. Even a small reduction in interest rates can lead to significant savings over the life of the loan.

Save for a Higher Down Payment:

Saving for a higher down payment can reduce the overall cost of your mortgage and decrease the amount of interest paid in the long run. Aim to save at least 20% of the property’s value to avoid private mortgage insurance (PMI) costs, which can add thousands of dollars to your expenses.

Shop Around for a Home:

Don’t rush into buying the first house you see. Take your time and explore different neighborhoods and properties. Being patient and persistent may lead to finding a better deal or a motivated seller willing to negotiate a lower price.

Consider Fixer-Uppers:

Homes in need of renovation often come with a lower price tag. If you’re willing to invest some time and effort, buying a fixer-upper can save you money upfront and provide an opportunity to increase the home’s value over time.

Work with a Skilled Realtor:

Enlisting the help of a skilled real estate agent can save you both time and money. Realtors have extensive knowledge of the local market and can negotiate on your behalf, potentially leading to a better deal.

Get a Home Inspection:

Never skip a home inspection. Hiring a professional to assess the property’s condition can identify potential issues and prevent costly surprises down the road. It gives you the leverage to negotiate repairs or a lower price if problems are found.

Shop for Homeowner’s Insurance:

When purchasing a house, you’ll need homeowner’s insurance. Shop around and compare rates from different insurers to secure the best coverage at the most affordable price.

Be Mindful of Closing Costs:

Closing costs can add up quickly, so be sure to ask for a detailed breakdown of all fees involved. Some lenders might be willing to negotiate or offer incentives to reduce these expenses.

Consider Energy-Efficient Homes:

Opt for an energy-efficient home or make energy-saving upgrades if possible. Lower utility bills will save you money in the long run and contribute to a more environmentally friendly lifestyle.

Evaluate Tax Benefits:

Educate yourself on potential tax benefits related to homeownership, such as mortgage interest deductions and property tax deductions. Consult with a tax professional to understand how these benefits apply to your specific situation.

In conclusion, buying a house is a significant investment, and careful planning and research can save you a substantial amount of money. From finding the best mortgage terms and negotiating the purchase price to exploring fixer-uppers and taking advantage of tax benefits, there are numerous opportunities to maximize your savings. With the right approach, you can make the dream of homeownership more affordable and financially rewarding in the long term.

29 Aug 2023
By Kevin Gahagan

What To Know About Property Lines

Mortgage

What To Know About Property LinesIf you are in the process of buying a new home, you know that there are a lot of moving parts involved. You need to know everything you can about a potential house before you decide to purchase it, and that includes the property lines. What do you need to know about property lines, and why are they so important?

How Are Property Lines Drawn?

While property lines are the borders that separate one property from another, they are also legal boundaries. Essentially, property lines determine what you do and do not own. There is a chance that someone may place a fence directly on top of the property line, but there is no guarantee that the fence is in the right place. Usually, property lines are determined and drawn by a surveyor who takes a look at the land, refers to any deeds or records related to the properties involved, and lets you know exactly where the boundaries are located. 

How Can You Find Your Property Lines?

When you are looking at a potential property, finding your property lines should be close to the top of your list. You are purchasing not only the building but the land around it, and you need to know where your land will end. This could determine potential projects you have in mind for the property. If you are building a house, there might be stakes in the ground clearly showing your property lines. If you are purchasing an existing property, you may have to pull legal records to figure out where the boundaries are located.

How Property Lines Play A Role After The Purchase

There are several situations where property lines could play a role after you purchase the property. For example, if you need to trim a tree, or if a tree falls on the property line, you may need to know who is responsible for getting rid of it. Furthermore, if there is a home improvement project coming up, you need to know the limits of that construction project. 

Know Your Property Lines

You need to know the boundaries of any property you are thinking of purchasing. An experienced real estate professional will understand how to look up documentation and let you know exactly where the property lines are before you move forward with the purchase.