BUYING YOUR HOME*

INTEREST RATE, "POINTS" & OTHER FEES.  Often the price of a home mortgage loan is stated in terms of an interest rate, points, and other fees. A "point" is a fee that equals 1 percent of the loan amount. Points are usually paid to the lender, mortgage broker, or both, at the settlement or upon the time of completion of the escrow. Often, you can pay fewer points in exchange for a higher interest rate or more points for a lower rate. Ask your lender or mortgage broker about points and other fees.

A document called the Truth in Lending Disclosure Statement will show you the "Annual Percentage Rate" ("APR") and other payment information for the loan you have applied for. The APR takes into account not only the interest rate, but also the points, mortgage broker fees and certain other fees that you have to pay. Ask for the APR before you apply to help you shop for the loan that is best for you. Also ask if your loan will have a charge or a fee for paying all or part of the loan before payment is due ("prepayment penalty"). You may be able to negotiate the terms of the prepayment penalty.

OWNER'S POLICY.  A lender's title insurance policy does not protect you. Similarly, the prior owner's policy does not protect you. If you want to protect yourself from claims by others against your new home, you will need an owner's policy. When a claim does not occur, it can be financially devastating to an owner who is uninsured. If you buy an owner's policy, it is usually much less expensive if you buy it at the same time and with the same insurer as the lender's policy.

MORTGAGE INSURANCE.  Private mortgage insurance and government mortgage insurance protects the lender against default and enable the lender to make a loan which the lender considers a higher risk. Lenders often require mortgage insurance for loans where the down payment is less then 20% of the sales price. You may be billed monthly, annually, by an initial lump sum, or some combination of these practices for your mortgage insurance premium. Ask your lender if mortgage insurance is required and how much it will cost. Mortgage insurance should not be confused with mortgage life, credit life, or disability insurance, which are designed to pay off a mortgage in the event of the borrower's death or disability.                                                                         *SOURCE: HUD 1676-H

FAST FACTS ABOUT REFINANCING YOUR HOME*

· Check that interest rates have dropped enough to make the cost of refinancing worthwhile.

· Compare the total costs to refinance, as well as interest rate, the more points the lending institution will charge.

· Shop around for a lender. Ask each for a list of charges and costs you must pay at closing.

· A lower interest rate gives you less interest to deduct on your income tax, which may increase your tax payments and decrease the total savings from refinancing.

*SOURCE: BUREAU OF CONSUMER PROTECTION

SEVEN QUESTIONS TO CONSIDER BEFORE SELLING YOUR HOME

1. Do you know the different ways to finance a home?

2. Do you have the time to leave your job so you can help the buyer with finance arrangements?

3. Do you know how to prepare the legal contract forms?

4. Can you negotiate price without getting emotionally involved?

5. Are you prepared to pre qualify genuine buyers from shoppers?

6. Do you want your home and family exposed to all who may want to see your home?

7. Are you available on a full time basis to show your home and answer all follow-up calls and questions?

If you cannot answer yes to all of these, call us!

HELPFUL HOME SELLING HINTS

First impressions are important!

1) Make sure the exterior of your home is appealing with a clean yard that is free of any clutter, along with neatly trimmed shrubbery.

2) Touch up anything that needs it.

3) Do not hesitate to make small, inexpensive repairs.

4) Consider a new coat of exterior paint.

5) As someone enters your home, a nice fragrance should emit. One that usually works well is the warm aroma of an apple pie baking in the oven. If you are like most people, and do not have time for the baking, try buying a nice spray.

6) Give special attention to the kitchen and bathrooms

7) Windows should be sparkling clean and all blinds dust free. Walls should be nice and clean.

8) Take a few minutes to fix any leaky faucets, loose doorknobs, stuck drawers or warped cabinet doors.

9) Remove all unnecessary materials from garage, utility rooms and closets, to show off their full space availability.

10) Keep stairways and doorways clear to avoid cluttered appearance and possible accidents.

11) Keep all rooms clean and neatly arranged.

12) Thin out your furniture if necessary- you may even consider putting some in a storage unit temporarily. (fewer items give a feeling of size.)

13) Turn on lights and open window coverings to let light in.

14) If weather is chilly have a fire in the fireplace.

15) No TV--- just soft music.

HOME BUYERS GLOSSARY OF CONSTRUCTION TERMS
 

AIRWAY - The space between the roof insulation and the roof board which allows for movement of air.

BEAM - A structural member transversely supporting a load.

BEARING WALL - A wall that supports any vertical load in addition to its own weight.

DRY WALL - Interior covering material, such as gypsum board or plywood, which is applied in large sheets.

FACIA or FASICA - The exterior horizontal trim around rafters. Also positioned directly behind gutters and over gable trim boards.

FOUNDATION - The supporting portion of a structure below the first-floor construction, or below grade, including the footings.

GABLE - The portion of the roof above the eve line of a double-sloped roof.

HIP ROOF - A roof that rises by inclined planes from all four sides of a building.

MOLDINGS - Shaped strips of ornamental wood used around doors and windows. Also used for base molding, tile molding, as chair rails and for exterior area molding. Moldings finish the junction of different materials or shapes.

RAFTER - One of a series of structural members of a roof designed to support roof loads. The rafters of a flat roof are sometimes called roof joists.

SIDING - The finish covering the outside walls of a frame building, whether made horizontal weather boards, vertical boards with battens, shingles or other materials.

SOFFIT - Usually the underside of an overhanging cornice or roof.

SOFFIT VENT - A vent located under the ceiling of a roof overhang.

STUD - One of a series of slender wood or metal vertical structural members placed as supporting elements in walls and partitions.

TRIM - The finished materials in a building, such as molding, applied around openings or at the floor and ceilings of rooms.